Analysis: Eurozone Labor Costs Rose Faster Than Expected In 1Q

Labor Jun 21, 2011 No Comments

Labor cost in EuropeThe annual increase in Eurozone labor costs accelerated sharply in 1Q to +2.6%, boosted by a pick-up in wage costs and especially employer payroll contributions, Eurostat said Monday.

Most analysts had expected a more moderate annual rise of 2% at most.

After bottoming out in the middle of last year, labor costs gains have now recouped over half the slowdown from the previous high of 3.5% in the spring of 2009, but they are still far below the pre-crisis peak of 4.3%.

Stronger labor cost increases in 1Q reflected both faster wage gains, up 2.3% on the year after +1.4% in 4Q, and a spike in non-wage costs, which include social security contributions and employment taxes, to a two-year high of 3.6% — double the rise in 4Q.

via Analysis:Eurozone Labor Costs Rose Faster Than Expected In 1Q | iMarketNews.com.

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Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website Propurchaser.com.

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