According to the findings of the National Statistics Institute (INE), the Labor Cost Index (LCI) increased by 3.8% in the third quarter of 2021, whereas "in the previous quarter it had decreased by 2.7%.

In terms of wage costs per hour worked, INE says there was an increase of 3.4% and other costs, also per hour worked, increased by 5.3% over the same period last year.

According to INE, the increase in employer's contributions resulting from the decrease in companies covered by the simplified 'layoff' regime in the private sector of the economy and the decrease in hours worked per employee in the Public Administration contributed to the increase in other costs.

The 3% increase in the average cost per worker and the 0.7% decrease in the number of hours effectively worked per worker also contributed to the index's evolution.

The 3% increase in the average cost per worker was, according to INE, "across all economic activities and much smaller than the increases seen in the previous quarter," but the smallest change was seen in the public sector (1.1%).

The decrease in the number of hours effectively worked per worker was observed in most activities, with the exception of services, "with a very sharp decrease in Public Administration (4.1%)," INE said.