Significant disparities in hourly labor costs among EU member states are recorded in the latest Eurostat data for 2024, with Greece ranking among the countries with lower employment costs compared to the European average.
According to the data, average hourly labor costs in the EU stood at €33.5 in 2024, while in the euro area they reached €37.3, marking a further increase compared to 2023. At the same time, the picture across countries remains highly uneven, with differences reflecting not only wage levels but also employers’ social contributions and other non-wage labor costs.
Greece is clearly positioned below the European average, with hourly labor costs estimated at around €16, placing the country in the lowest third of the ranking among member states. This performance is recorded at a time when the Greek labor market is showing gradual recovery, yet continues to be characterized by relatively restrained earnings compared to the rest of Europe.
At the same time, the lowest labor costs in the EU were recorded in Bulgaria (€10.6), Romania (€12.5), and Hungary (€14.1), while at the opposite end of the spectrum, the highest labor costs appear in Luxembourg (€55.2), Denmark (€50.1), and Belgium (€48.2). These differences underline the structural inequalities between economies with varying levels of productivity, social protection, and wage policy.
Of particular interest is also the distribution of labor costs by sector of economic activity. Across the EU as a whole, hourly labor costs are estimated at €33.9 in industry, €30 in construction, while in the broader services sector they are higher, reflecting the greater share of specialized human capital. In Greece, where services—and especially tourism—constitute a key pillar of the economy, low labor costs function both as a competitive advantage and as a source of pressure on incomes.
Overall, the data show that in 2024 hourly labor costs increased by 5.0% year-on-year in the EU and by 4.5% in the euro area. The largest increases were recorded mainly in Central and Eastern European countries, such as Romania, Bulgaria, and Hungary, where wage adjustments are moving at a faster pace in an effort to converge with the European average.
For Greece, Eurostat data highlight a dual reality: on the one hand, low labor costs support competitiveness in labor-intensive sectors such as tourism and services. On the other hand, they underscore the challenge of gradually strengthening earnings without disrupting the balance of the labor market and the operating costs of businesses.
It should be noted that Eurostat data refer to total labor costs and include, in addition to wages, employers’ social contributions and other employment-related expenses, providing a more comprehensive picture of the actual cost burden for businesses in each country.