Labor Costs on the Climb: What Does the Field Say, What Does the Data Say?

Increasing costs and inconsistent working hours. As a matter of fact, the latest newly announced statistics fully confirm our feeling on the field.

When we look at the data shared by the National Institute of Statistics (INE) for the second quarter of 2026, we see that labor costs per hour increased by 5.4% compared to the same period of the previous year. In the first quarter of the year, this rate was at 5.3%; In other words, the upward momentum continues, albeit small.

So, what exactly lies behind this increase? There are two main factors at stake: The rise in costs per employee and the decline in actual hours worked day by day.

How is the situation by sector?

Although cost increases were felt in every field, the construction sector was by far the winner. The shortage of finding masters and qualified personnel in the field and the increase in labor on the material load are also reflected in the figures.

Construction: There is a record 6.7% increase in labor costs. While wage costs increased by 6.7%, non-wage costs also increased by 6.6%. The average cost increase per employee reached 6.5%.

Service Sector: Total cost increase is at 5.7%. The wage side increased by 5.8% and non-wage expenses increased by 5.5%.

Industry: There is a 5.1% increase in hourly costs. Wages increased by 5.2% and other expenses increased by 4.8%.

Public Administration: There is a slightly more moderate course compared to other fields. While the cost increase remained at 4.9%, the average cost increase was 4.4%.

Why Are Costs Increasing While Working Hours Are Decreasing?

This is the most striking part. Statistics show that the cost of the average employee has increased by 4.9% across the board. In contrast, however, the number of hours actually worked is declining across all major sectors (the overall average is down 0.4%).

The place where this decrease is felt most clearly is the service sector with -0.6%. On the industry and construction side, the decrease in hours is 0.1%. So in summary; We are faced with an equation where we work fewer hours and face a higher cost per hour.

The current situation shows that we need to approach the labor item more flexibly and carefully than ever before when planning budgets in the coming period.

Source: INE (National Institute of Statistics)

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