Labor cost rose 8.6% in 2020 – Economy

The Labor Cost Index (ICT) increased by 8.6% in 2020 mainly due to the reduction in hours worked, according to data released this Friday, February 12, by the National Statistics Institute (INE).

This figure, says the institute, “corresponded to increases of 9.2% in wage costs and 6.1% in other costs”. The average cost per worker increased by 2% and the number of hours actually worked per worker decreased by 5.8%.

In the fourth quarter of 2020, the index registered a year-on-year increase of 6.6%, “as a result of the 2.8% increase in the average cost per worker and the 3.3% reduction in the number of hours actually worked per worker. “, according to the institute. In the previous quarter, this variation had been 6%.

“The reduction in the number of hours actually worked per worker, similar to the previous quarter, was transversal to the majority of economic activities, having even increased,” says INE.

This is except for public sector activities, which recorded a less pronounced decrease, and construction, which registered an increase, he adds.

Source: Jornal de Negócios by

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