Average labour costs in 2011 higher by 1.4%

The average labour costs (labour costs calculated per employee or self-employed person, per month) in 2011 amounted to EUR 1,849 and increased by 1.4% compared to 2010. The reason for such an increase lies in the fact that the total employment decreased more (by 1.6%) than the total labour costs (by 0.3%). The difference in labour costs between persons with tertiary education and persons with upper secondary school decreased; the average labour costs for persons with tertiary education were 82% higher than the labour costs for persons with upper secondary education (in 2010 85%).

In 2011 the average labour costs for employees with tertiary education lower by 0.4%

In 2011, compared to the previous year, the average labour costs increased in the majority of activities; the most in agriculture, forestry and fishing (by 7.2%) and electricity, gas, steam and air conditioning supply (by 6.0%). Only in 4 activities (out of 20) the labour costs decreased: in arts, entertainment and recreation (by 1.8%), information and communication (by 1.6%), real estate activities (by 1.1%) and human health and social work activities (by 0.7%).

The educational attainment has the greatest influence on the differences in labour costs hence the comparison of average labour cost by educational attainment is reasonable. In 2011 the average labour costs decreased for employees with tertiary education (on average by 0.4%), while the labour costs for employees with basic or upper secondary education increased (by 2.1% and 0.8% respectively). The data in table 1 show that the changes in labour costs were different by activities and educational attainment, the most for employees with tertiary education (from -10.3% in Administrative and support service activities to 24.8% in Activities of households as employers).

The result of the mentioned changes was a narrower gap in labour costs for different educational groups of employees. On average the labour costs for tertiary educated employees exceeded by 80% those for employees with upper secondary education (in 2010 by 82%), and the labour costs for employees with upper secondary education exceeded those for employees with basic education by 33% (in 2010 by 34%). In 2011 the biggest differences in average labour costs appeared between employees with tertiary education and employees with upper secondary education in 3 activities: construction, manufacturing, and wholesale and retail trade; repair of motor vehicles, where the difference exceeded 100%. The difference between employees with basic education and employees with upper secondary education was the biggest in administrative and support service activities, where the difference amounted to 67%, public administration and defence; compulsory social security (60%) and education (49%). As can be seen from Chart 1, the gap between tertiary educated employees and employees with upper secondary education is larger in manufacturing, wholesale and retail trade, transportation, and accommodation and food service activities (A-I), while the gap between employees with basic education and employees with upper secondary education is bigger in activities J-R (information and communication, financial and insurance activities, human health and social work activities, public administration, and education).

In 2011 better situation for self-employed persons

The comparison of labour costs between employees and self-employed persons shows that the economic situation in 2011 was somewhat better for self-employed persons. According to national accounts, the number of self-employed persons in 2011 was estimated at 173,591. Compared to 2010 it increased by 5%, i.e. by 876 persons. The number of self-employed persons has been increasing since 2005; the biggest increase was observed in 2006-2009 when the growth varied from 1.8% to 2.4%.

The majority of self-employed persons do not receive a salary, but generate the income on the basis of the labour or capital input (in national accounts this income is mixed income). In 2011 the self-employed generated EUR 2,951 million of mixed income, while their labour costs were estimated at EUR 2,152 million. If the self-employed were receiving salaries, they would on average represent 72.9% of mixed income. Thus, in 2011 the self-employed had on average 27.1% of their income available for financial or other investments or saving. In 2011 this share of income increased by 2.3 percentage points (in 2010 the share was 24.8%). According to mixed income/labour costs ratio, the most successful years for the self-employed were 2000, 2001 and 2007 when the labour costs represented 55%-56% of mixed income.

Table 1: Growth of average labour costs by educational attainment and activities of employees, Slovenia, 2011

Educational attainment
Total Basic or less Upper secondary Tertiary
annual growth rates (%)
Total-Activities 1.6 2.1 0.8 -0.4
A Agriculture, forestry and fishing 7.2 12.0 3.9 9.7
B Mining and quarrying 2.7 2.0 3.1 -0.6
C Manufacturing 2.5 2.8 1.9 1.1
D Electricity, gas, steam and air conditioning supply 6.0 0.4 -0.8 8.0
E Water supply; sewerage, waste management and remediation activities 1.5 2.9 0.8 0.3
F Construction 0.7 2.5 -0.1 -7.6
G Wholesale and retail trade; repair of motor vehicles 1.4 2.6 0.7 0.5
H Transportation and storage 1.1 -4.8 -0.1 -7.7
I Accommodation and food service activities 2.9 3.3 2.5 -1.0
J Information and communication -1.6 1.4 -2.3 -1.7
K Financial and insurance activities 0.0 9.4 -0.7 -2.3
L Real estate activities -1.1 0.5 -1.9 -4.4
M Professional, scientific and technical activities 2.6 6.4 2.2 2.1
N Administrative and support service activities 3.1 4.4 5.3 -10.3
O Public administration and defence; compulsory social security 0.4 -0.2 0.2 -0.5
P Education 0.0 -2.1 -3.5 0.2
Q Human health and social work activities -0.7 -0.6 -1.0 -2.1
R Arts, entertainment and recreation -1.8 -0.3 -3.9 -1.2
S Other service activities 2.3 4.0 1.2 1.8
T Activities of households as employers 2.6 0.7 -2.3 24.8

Source: SURS

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