EU Sources - Productivity ‘reserve’ justifies wage increases - September 30, 2017

There is much debate about the consequences of the recent wage increases in CEE-countries. However, employers report more problems with labour shortages than with increased wages. The main cause for this is productivity. While wage increases are currently outstripping efficiency gains, the opposite has been the case for a long period. CEE wage growth lagged behind productivity gains and average labour costs in the EU’s 10 eastern members were about a quarter of Germany’s at the end of 2016. Productivity, on the other hand, was two-thirds that of Europe’s biggest economy, according to Bloomberg calculations based on Eurostat data.  

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For more information, please contact the editor Jan Cremers, Amsterdam Institute for Advanced Labour Studies (AIAS) or the communications officer at the ETUI, Willy De Backer For previous issues of the Collective bargaining newsletter please visit Since June 2013 readers can consult our archive and search through all articles in our database at www.cbnarchive.euYou may find further information on the ETUI at, and on the AIAS at

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