The hourly labor cost in Romania continued to increase at double-digit rates, but it remains among the lowest in the European Union (with only Bulgaria having a lower level). Furthermore, labor productivity improved at a record pace in Romania, the steepest among EU countries, according to Eurostat data.

The hourly labor costs paid by the Romanian companies posted the most substantial growth in the European Union in the last quarter of 2018, having increased by 13.1% y/y or almost five times faster than the 2.8% EU average, according to data published by the Eurostat statistical office on March 19.

The growth rate eased compared to the previous two quarters when the labor cost in Romania increased by 15.5% y/y in Q2 and 13.9% y/y in Q3. However, the labor cost related to a Romanian employee, EUR 1,008 per month in 2017, was one-fourth of the average in the European Union with only Bulgaria having a lower one (EUR 784) according to Eurostat data quoted by Ziarul Financiar.

Furthermore, labor productivity in Romania increased by 50% since the country joined the European Union reaching a performance close to the ones in Poland, Hungary, Croatia, and Greece according to Profit.ro quoting Eurostat data.

editor@romania-insider.com

(Photo source: Pixabay.com)