Bulgaria and Romania remain the countries with cheapest labor in EU

Hourly labor costs in the European Union ranged in 2016 between EUR 4.4 in Bulgaria and EUR 42 in Denmark, while the average costs amounted to EUR 25.4 in EU and EUR 29.8 in the euro zone, according to data published yesterday by EU’s statistical office Eurostat. Romania had an average hourly labor cost of EUR 5.5, the second-lowest in the EU. However, Romania saw the highest increase in labor costs in the EU last year, namely 12.7%. The evolution of labor costs was uneven in Romania, from EUR 4.2 in 2008 to EUR 4.1 in 2012, then EUR 4.6 in 2014, EUR 4.9 in 2015, and EUR 5.5 last year. During this period, Bulgaria and Romania were the countries with the cheapest labor in the EU. By sectors of activity, the hourly labor costs in the EU reached EUR 26.6 in industry in 2016, EUR 25.8 in services, and EUR 23.3 in constructions. In the case of Romania, the hourly labor costs amounted to EUR 5.1 in industry, EUR 6 in services, and EUR 4.3 in constructions. The labor costs include salaries and other expenses such as social contributions. At EU level, the non-wage costs amounted to 23.9% of the hourly labor costs in 2016. In Romania, they reached 19.9%. editor@romania-insider.com