German labour costs increase at sharpest rate since early 2013

[BERLIN] German labour costs rose in the third quarter at their sharpest rate since the start of 2013, data showed on Tuesday, in a likely boon to eurozone neighbours who should find this makes their goods more competitive.

The data from the federal statistics office showed the cost of work in Germany - made up of gross earnings and non-wage labour costs - rose by 2.3 per cent adjusted for calendar effects between July and September from the same period a year earlier.

Employers spent 2.0 per cent more on gross earnings and they also had to pay 3.4 per cent more in non-wage labour costs.

German labour costs are rising faster than in most other European countries. European figures are yet to be published for the third quarter but in the April-June period, the cost of labour in Germany rose by 1.9 per cent compared with the European average of a 1.2 per cent gain, according to Eurostat figures.

REUTERS