Ivan Camilleri, Brussels
Labour costs, exports rise
Malta’s hourly labour costs rose by a crippling 3.7 per cent during the third quarter of the year, much higher than the 2.7 per cent average in the euro area.
While it may be good news for employees, it reduces the country’s competitiveness compared to other EU states.
According to Eurostat, which issued the figures, the biggest increase in Malta’s hourly labour costs in the third quarter, compared to the same period last year, was in salaries and wages – up 3.7 per cent. Other increases, including employers’ social contributions, amounted to 3.1 per cent.
Among the member states for which data are available, the highest annual increases in hourly labour costs were registered in Bulgaria (+9.8 per cent), Romania (+7.9 per cent) and Slovakia (+7.2 per cent), and the smallest increases in Portugal (+0.8 per cent) and Cyprus (+1.4 per cent). A decrease was recorded in Ireland (-1.1 per cent).
There was good news, on the other hand, in exports. By September, the figure reached €2 billion, a rise of more than 46 per cent over the same period of 2010 and the second highest growth in exports in the EU.
According to the EU’s statistics arm, only Estonia has so far managed to outperform Malta’s exports success.
On the other hand, imports also went up although at a slower pace than exports. Between January and September 2011, Malta imported €2.8 billion worth of goods, an increase of 19 per cent over the same period in 2010.
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Gianninu Saliba
Dec 20th 2011, 14:49
So, according to Eurostat, labour costs in Malta has gone up by 3.7% compared to the EU average of 2.7% and exports went up by 46%. Joseph, do you understand what this means. Salaries have gone up; higher than the EU average and that's before the budget announced salary increase coming into effect in January. Exports have increase drastically and this happened when all around us is doom and gloom. Let's say it together, Joseph: "Viva Gonzi. Viva l-Gvern Nazzjonalista". Come on, Joseph, say it. Say it, if you really love Malta. Repeat after me: "Viva Gonzi. Viva l-Gvern Nazzjonalista".
Guido Farrugia
Dec 20th 2011, 18:34
Qbadt nithassrek issa. Pathetic to the limits.
Victor Vella
Dec 20th 2011, 14:18
Garbage in garbage out statistics.
Steven Brockwell
Dec 20th 2011, 12:17
don't know about you lot, my lab our cost was 1.16 euro aweek dont know how that effected competitiveness.
or maybe eurostat was on about gonzi wage increase. now there's a thought. dam what will the eu come up with next.
Joseph E Briffa
Dec 20th 2011, 10:50
The increases in labour costs are given in percentage terms; therefore they would be higher in cases were the basic wages are lower. Hence the relatively high figures in the case of Bulgaria and Roumania where wages are on the low side. The average percentage increase for the euro area is bound to be lower as it comprises countries where the basic wage is substantially higher than in Bulgaria, Rumania and Malta. So the percentage increase for Malta does not necessarily result in a significant reduction in competitiveness; the substantial increase in Malta's exports during the same period seems to prove this.