Facebook Blogging

Edward Hugh has a lively and enjoyable Facebook community where he publishes frequent breaking news economics links and short updates. If you would like to receive these updates on a regular basis and join the debate please invite Edward as a friend by clicking the Facebook link at the top of the right sidebar.

Saturday, June 16, 2007

EU27 Q1 2007 Hourly Wage Costs

This week Eurostat published the provisional data for first quarter 2007 wage costs.

The following table summarizes the main results:

(please click on table for better viewing)

The general position is summarised as follows:

Among the Member States for which data are available for the first quarter of 2007 the smallest annual increases in hourly labour costs were observed in Germany (0.1%), Malta (1.4%) and Belgium (2.0%). The highest annual rises were registered in Latvia (32.6%), Romania (25.0%), Lithuania (22.2%) and Estonia (21.1%). Annual growth in the wages & salaries component ranged from 0.1% in Germany to 32.7% in Latvia. The range for non-wage costs was from 0.0% in Germany to 33.8% in Latvia.

Perhaps the last sentence is the most interesting, in that wage costs at a rate of 32.7% in Latvia, and at only 0.1% in Germany. This latter figure is very surprising, especially in the light of all the speculation that the 3% VAT increase might be pushed through into higher wages. Something is evidently afoot in the German labour market and to this I shall return. Something different is obviously happening in Latvia, and likewise I will try and find the time to post on this next week.

No comments: