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Euro Area EUR

Euro Area Labour Cost Index YoY Final

Info

History

Chart

Impact:

Low

Source: EUROSTAT

Latest Release:

Date:

Surprise:

-0.2%

Actual:

3.3%

Forecast: 3.5%

Previous/Revision:

3.9%

Period: Q3

Next Release:

Date:

Period: Q1

What Does It Measure?

The Euro Area Labour Cost Index measures the changes in the cost of labor per hour worked within the Eurozone, explicitly assessing wage growth, social security contributions, and other labor-related costs. This index is crucial for evaluating inflationary pressures, labor market dynamics, and overall economic health at the national and regional levels.

Frequency

The Labour Cost Index is released quarterly, typically providing final figures approximately 70 days after the end of the reporting quarter, with the data being subject to revision.

Why Do Traders Care?

Traders pay significant attention to the Labour Cost Index as it provides insights into future inflation trends, which can influence monetary policy decisions by the European Central Bank (ECB). Higher-than-expected labor costs may lead to bullish sentiment for the euro and equities as they signal rising consumer prices, while lower readings might generate bearish effects.

What Is It Derived From?

The Labour Cost Index is derived from surveys conducted among businesses across various sectors, capturing their total labor costs, including wages and non-wage components. This data is collected using standardized methodologies that ensure a representative sample within the Eurozone, with specific attention to various industries and company sizes.

Description

The Labour Cost Index consists of preliminary estimates and final reports, where preliminary data reflects early calculations based on available data, while final data is revised and considered more accurate. Financial markets often react sharply to initial readings due to their timeliness, although final figures can lead to adjustments in market sentiment as they offer a clearer picture of labor costs.

Additional Notes

This indicator is classified as a coincident economic measure, reflecting current labor market conditions and broader economic trends. Comparisons with other inflation indicators, such as the Consumer Price Index, provide additional context to understand the overall inflation outlook across the Eurozone.

Bullish or Bearish for Currency and Stocks

Higher than expected: Bullish for Euro, Bullish for Stocks. Lower than expected: Bearish for Euro, Bearish for Stocks.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number	Better than forecast for the currency (or previous revise better)
Red Number	Worse than forecast for the currency (or previous revise better)
Hawkish	Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish	Favors lower rates to boost growth, weakening the currency but lifting stocks.

Date	Actual	Forecast	Previous	Surprise
Dec 17, 2025	3.3%	3.5%	3.9%	-0.2%
Sep 16, 2025	3.6%	3.7%	3.4%	-0.1%
Jun 16, 2025	3.4%	3.2%	3.8%	0.2%
Dec 16, 2024	4.6%	4.6%	5.2%
Jun 17, 2024	5.1%	4.9%	3.4%	0.2%