Hourly labor cost index rises by 8.5% in Turkey

Turkish Statistical Institution (TurkStat) published on Thursday \"the Labor Cost Index for IV. Quarter 2012\". According to report, hourly labor cost index rose by 8.5%, hourly earnings index rose by 8.3%, and hourly labor cost excluding earnings index also rose by 9.8% compared to same quarter of the previous year. Hourly labor cost index with the base year of 2008 showing the hourly changes in whole labor cost items rose by 8.5% in the fourth quarter of 2012 compared to same quarter of the previous year for the total of covered economic activities. The breakdown by economic activity shows that this increase was 8% for industry sector, 8.6% for construction sector and 9.8% for services sector. The highest increase in hourly labor cost index was in economic activity M (Professional, scientific and technical activities) with 23.4 % in the fourth quarter of 2012 compared to same quarter of the previous year. Hourly earnings index showing changes in regular and irregular payments to employees rose by 8.3% in the fourth quarter of 2012 compared to same quarter of the previous year for the total of covered economic activities. Economic activity breakdown shows that this figure was 7.5% for industry sector, 8.4% for construction sector and 10% for services sector. The highest increase in hourly earnings index was in economic activity M (Professional, scientific and technical activities) with 23.8% in the fourth quarter of 2012 compared to same quarter of the previous year. Hourly earnings index showing changes in social security payments of employer rose by 9.8% in the fourth quarter of 2012 compared to same quarter of previous year for the total of covered economic activities. The breakdown by economic activity indicates that there was an increase of 10.2% for industry sector, 9.8% for construction sector and 8.9% for services sector in the fourth quarter of 2012 compared to same quarter of the previous year. The highest increase in hourly labor cost excluding earnings index was in economic activity I (Accommodation and food service activities) with 22.7% in the fourth quarter of 2012 compared to same quarter of the previous year. Quarterly Labor Cost Index, published by Turkish Statistical Institute with the base year of 2008, is a short-term indicator showing the nominal development of hourly labor costs incurred by employers as a result of engaging the labor work force. The two main components of labor costs are earnings and labor cost other than earnings (social security, severance and termination payments of employer).