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Eurostat Data Highlights Steady Rise in Labor Costs Across the EU With Cyprus Tracking the Trend

Overview of Rising Labor Costs in Europe

New figures released by Eurostat reveal that Cyprus experienced a 3.5% increase in hourly wage costs during the third quarter of 2025—a trend that mirrors broader labor cost pressures across the euro area and the European Union. In the same period, the euro area and the EU recorded increases of 3.3% and 3.7% respectively, underscoring a sustained upward trajectory amid economic uncertainty.

Detailed Analysis of Wage and Non-Wage Components

The comprehensive report details that total labor costs comprise two primary components: wages and salaries, alongside non-wage expenses such as social contributions. Specifically, wages and salaries in the euro area rose by 3.0% in Q3 2025, while non-wage costs surged by 4.0%, suggesting that employers are facing considerable pressure from ancillary expenses. Across the EU, hourly wages increased by 3.5%, with non-wage costs climbing by 4.2%.

Sectoral and Economic Impact

Examining economic activity, the analysis differentiates between the mainly non-business and business economies. In the euro area, hourly labor costs advanced by 3.1% in the non-business sector and by 3.3% in the business sector. Detailed figures show that within the business economy, the industrial sector experienced a 3.3% rise, construction led with a 4.3% jump, and services increased by 3.2%. Similar trends were observed across the broader EU, where non-business sectors saw a 3.4% rise compared to a 3.8% increase in the business segment.

Country and Sector Comparisons

At the country level, some EU member states reported notably higher increases in hourly wage costs. Bulgaria, Lithuania, Croatia, and Hungary recorded increases of 12.4%, 9.7%, 9.1%, and 8.8% respectively, compared with minimal rises in France (1.3%), Slovenia (1.6%), Spain (2.0%), Austria (2.1%), and Italy (2.4%). Notably, Malta was the only country to observe a decline, with costs decreasing by 1.4%.

Sectoral analysis further reveals that within the EU, hourly wage costs surged most substantially in other service activities (4.5%) and also saw significant increases in construction and professional, scientific, and technical activities (both at 4.3%). Conversely, the energy supply sector experienced the smallest increase at 2.5%, while non-wage costs spiked dramatically in construction by 5.8%.

Conclusion

The consistent rise in labor costs across the European landscape, as illustrated by the recent Eurostat data, underscores an environment of escalating employee compensation demands. For Cyprus, with its 3.5% increase, the trend reflects moderate but persistent cost pressures—a dynamic that will undoubtedly influence both employer strategies and broader economic policies across the region.

Copyright Law Struggles To Keep Up With AI Training

Courts Are Still Applying Old Copyright Rules To AI

AI companies train models on enormous amounts of published material, including books, articles and academic research. Whether using that content without authors’ permission violates copyright law remains unresolved.

Much of the debate centres on fair use, which allows copyrighted material to be used without permission in certain circumstances. Courts consider factors such as the purpose of the use, how much material was involved and its impact on the original market.

Anthropic Case Sets An Important Precedent

A major case involving Anthropic and a group of authors provided one of the clearest rulings so far. Judge William Alsup found that using copyrighted books to train AI models was lawful, comparing the process to people reading and studying literature before creating something new.

Anthropic was nevertheless ordered to pay $1.5 billion in a settlement. The penalty concerned books the company had obtained from illegal online libraries rather than the AI training itself.

For AI companies, that distinction could prove significant because it separates studying copyrighted material from directly copying it.

Competition Could Be The Key Issue

A case involving Thomson Reuters and Ross Intelligence offers a different perspective. A court ruled that Ross could not claim fair use after using Reuters’ copyrighted material to develop a competing AI-powered legal research platform.

The decision suggests courts may be less willing to consider AI training fair use when copyrighted content is used to build a product that directly competes with the original.

For authors, an unresolved question is whether AI-generated content should be considered competition for the works used to train these models.

The Law Has Yet To Catch Up

US copyright law predates generative AI by decades, leaving courts to apply old principles to new technology. Questions also remain over copyright protection for AI-generated works. In Thaler v. Perlmutter, a court ruled that material created entirely by AI cannot receive copyright protection.

Major AI companies remain involved in copyright litigation, and different courts could reach different conclusions. For now, there is no universal rule: the legality of AI training will depend on the circumstances of each case and how courts ultimately interpret copyright and fair use.

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