Costs & productivity Labour costs are higher in former EU 15 countries. This goes along with very high productivity levels. New member states, where labour costs are much lower, are gradually catching up, with a constant increase in productivity over the past ten years. Minimum contractual wages also influence labour costs. Labour costs cover wage and salary costs, more generally remunerations in cash or in kind paid by an employer to an employee as well as the employers’ social contributions plus employment taxes. Did you know? • Baltic countries showed the highest rises in labour costs in 2006: 17.5 to 27%. • Lowest increases were recorded in Germany (1.2%) and Sweden (2%). | • Labour productivity per person (relative to constant 100 base for EU 25): United States: 127.9 (1995) 136.5 (2008) Japan: 92.6 (1995) 98.0 (2008) | | indicators Labour productivity per person employed: variation 1995-2008 Full time employees contractual wages |