Danish Labour cost increases most in the EU but economists here are not very worried
Tuesday, 24 September 2013
The cost of labour in Denmark in the private sector rose by 1.8 percent in the second quarter this year compared to similar quarter last year. It is more than the EU average, which has increased by 1.1 percent, latest data from Statistics Denmark shows.
Looking at the level of labour costs in Europe and the U.S. it shows that, for the first time since the third quarter of 2011, it was more expensive to hire a Dane than an average EU citizen in the second quarter, according to Peter Bojsen Jakobsen, macro economist at Danish bank, Sydbank.
He points outs that such a situation could mean that the Danish competitiveness could suffer if the Danes see their labour costs increases, more than their surrounding countries.
However, Peter Bojsen Jakobsen does not believe that today's figures provide a cause for concern for the Danish export companies, and still expect an improvement in Denmark's competitiveness despite the higher wages.
by Scancomark.com Team