Hourly labor costs in the Euro Area rose 3.3% year-over-year in Q4 2025, slowing slightly from an upwardly revised 3.4% in Q3. Wages and salaries grew 3.0%, down from 3.2%, while non-wage costs jumped 4.4%, up from 3.9%. By sector, labor costs climbed 3.5% in the non-business economy and 3.2% in the business economy, with industry (+2.5%), construction (+4.0%), and services (+3.4%) showing varied trends. Among major economies, growth slowed in Germany (3.2% vs. 4.3%) and the Netherlands (4.8% vs. 5.1%), held steady in France (1.7%), but accelerated in Spain (3.9% vs. 2.0%) and Italy (2.6% vs. 2.3%).

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