Labor costs in Germany rose faster in the third quarter of the current year than in the previous quarter. In the seasonally and calendar-adjusted comparison, they would have increased by one percent, the Federal Statistical Office said. Compared to the same quarter of the previous year, costs were around 2.7 percent higher. That's the highest value in a year.
In the European comparison, according to the Federal Office of Statistics, labor costs rose 2.4 percent in the second quarter, but slower than the EU average (plus 2.8 percent). For the European comparison, only the costs of jobs in industry and in economic services were taken into account, ie without the public service.
Labor costs of 34.20 euros per hour in Germany
Labor costs rose again sharply in the less developed economies in the eastern part of the European Union, such as Romania or Latvia. There, the costs are still less than ten euros per hour work. For comparison: In Germany, the value of 2017 was 34.20 euros - including ancillary wage costs. Only in five European countries is the value higher.
The Institute for Macroeconomics and Business Cycle Research (IMK) of the union-friendly Hans Böckler Foundation rated the increase as a success. "If the German labor costs rise a little more, that is good news," said the Scientific Director of the IMK, Gustav Horn. "Germany is doing better economically, since the fixation on the lowest possible labor and unit labor costs has diminished somewhat."
The employers' institute of the German economy (IW) had criticized the rising labor costs in the past against it strongly. They pose a significant risk to business success and investment. However, high labor costs can be offset, even if productivity is higher.