Bulgaria Ranks Second in EU for Soaring Wage Growth in Q3 of 2023

Bulgaria has surged to the forefront of EU countries for its remarkable wage growth in the third quarter of 2023, showcasing an impressive 15.8% increase in hourly wage costs compared to the same period last year. According to the latest data unveiled by Eurostat on Friday, Croatia led the rankings with a 16.2% surge, closely followed by Bulgaria, Hungary, and Romania with substantial growth rates of 15.8%, 15.4%, and 15.1% respectively.

Beyond this, four other EU member states witnessed substantial growth rates above 10%, including Latvia (+12.4%), Poland (+12.2%), Lithuania (+11.2%), and Estonia (+11.0%).

Throughout the euro area, the third quarter of 2023 recorded a 5.3% increase in hourly labor costs, while the entire EU saw a slightly higher rise of 5.7% year-on-year.

The two primary components contributing to labor costs are wages and non-wage costs. In the euro area, hourly wages increased by 5.3%, whereas non-wage costs rose by 5.1% during the same period. For the EU, hourly wages spiked by 5.8%, while the non-wage component saw a 5.4% increase on a yearly basis.

The report also highlighted specific economic sectors where the most significant annual increases in hourly wage costs were observed, such as the 'Electricity, gas, steam, and air conditioning supply' sector (+7.3%) and 'Administrative and support service activities' (+7.1%). Conversely, the 'Real estate activities' sector recorded the lowest annual increase at +2.6%.

In terms of non-wage costs, sectors like 'Mining and quarrying' (+9.5%) and 'Construction' (+8.7%) experienced substantial annual growth, while 'Real estate activities' registered the lowest increase at +2.2%.

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