Irish labour costs amongst lowest in Western Europe
Posted on September 02, 2013 by Rory O'Farrell
Ireland's labour costs in the business economy continue to be amongst the lowest in Western Europe.
Labour costs differ from wages in that they also include other costs faced by employers such as PRSI. Therefore labour costs are a far more relevant way to compare competitiveness across countries. Ireland has one of the lowest rates of employer social contributions in both Western Europe and the EU as a whole.
In Ireland it costs €24.57 to employ a worker for one hour, compared to €39.61 in Denmark. Adjusting for differences in cost of living Ireland falls even further, with adjusted labour costs lower than those in Spain.
Full details can be seen in indicator 3.1 in the latest edition of the NERI's Quarterly Economic Facts.