Germany: German employers paid EUR 28 in social contributions for EUR 100 of gross salary in 2010

Labor cost slightly lower than in France.  The survey published by the German Federal Statistics Agency (Destatis) on April 11th is probably going to revive the debate between economists, at least in Germany.  Indeed, the study showed that, in 2010, in average, German private employers paid €29.20 per hour worked, placing Germany 7th behind Denmark (€37.60), Belgium (€37.20), Sweden (€35.90), France (€33.10), Luxembourg (€32.80) and the Netherlands (€30.40).  This means that German costs are 32% higher than the European average (€22.10) but 12% lower than the French labor cost.  At the bottom of the list is Bulgaria with hourly costs amounting to €3.10.  when focusing on labor cost for manufacturing industries, more subject to international competition, Germany ranks 5th (€33.10), right behind France (€34.20), i.e. a 3% difference in favor of Germany.  Comparing the evolution of labor costs between Germany and Greece and Portugal, deep into a financial crisis, is also interesting.  With €12 (Portugal) and €17.50 (Greece), the two countries still offer ‘interesting’ labor costs.  However, between 2000 and the end of 2010, labor cost increased by 33.5% in Portugal and €33.8% in Greece.  Over the same period, German labor costs, controlled by wage moderation and the decline in social contributions, only increased by 18.8%.  Energy and finance (banking and insurance) are the sectors with the highest labor costs in Germany (respectively €44.50 and €43.70).
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s 5th (€33.10), right behind France (€34.20), i.e. a 3% difference in favor of Germany. Comparing the evolution of labor costs between Germany and Greece and Portugal, deep into a financial crisis, is also interesting. With €12 (Portugal) and €17.50 (Greece), the two countries still offer ‘interesting’ labor costs. However, between 2000 and the end of 2010, labor cost increased by 33.5% in Portugal and €33.8% in Greece. Over the same period, German labor costs, controlled by wage moderation

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