Romania's labor costs are just one fifth EU average, European figures creep up slightly

Latest figures released for hourly labor costs in the EU are estimated at EUR 23.1 per hour on average in the EU27 and EUR 26.7 per hour in the eurozone. But the hourly cost to employers varies massively across the member states: from EUR 3.5 and EUR 4.2 per hour in Bulgaria and Romania, up to 10 times as much in Belgium – EUR 39.3 per hour. The latest Eurostat figures are for total costs to employers and, as well as wages, include tax, pension contributions and other charges.

Hourly labor costs were up slightly across both the EU27 and the eurozone, from EUR 22.5 and EUR 26.9 per hour in 2010 respectively. This increase of EUR 1 per hour or less was almost uniform across the EU, with only Ireland recording a slight decrease in hourly labor costs from 2010. Figures were unavailable for Greece, but may also have decreased if the trend from 2009/2010 was continued. Only Belgium, France, Austria and Sweden showed increases in labor costs for 2011 of greater than EUR 1 per hour – Belgium and France both up EUR 1.1 per hour, Austria by EUR 1.2 and biggest climber Sweden up by EUR 3.1 per hour. Results for 2011 were unavailable for Romania, with the hourly labor cost of EUR 4.2 recorded in 2010. If the country followed the regional trend, a figure of EUR 4.5 – 4.8 per hour could perhaps be expected. Liam Lever, liam@romania-insider.com