The average hourly cost of labour in the eurozone, excluding agriculture and public administration, stood at €29.30 last year.
But there are significant differences among member states, starting at the €3.40 in Bulgaria to the top level of €40.10 in Denmark.
Portugal’s average €13.30 hourly cost was well below the eurozone average and was the fifth lowest in the region.
Cost refers to what an employer must pay for staff, including wages but also employer’s social contributions and taxes, sick pay and the like.
In neighbouring Spain, the average was €21.10 which was very close to the €21.80 in the UK.
In Portugal, as throughout the eurozone, costs varied considerably depending on the profession.
The financial and insurance sector cost the most, a whopping €35.60, with the lowest cost, €8.20, in the accommodation and food sector. See box below.
Portugal stood out as the country paying the most for finance and insurance workers compared to its average cost (167% above).
For the most part, Portugal was in line with its eurozone partners with the notable exception of having much lower labour costs in manufacturing.
This is bad news for manufacturing workers, but could help give Portugal a competitive edge for export.
Since 2008, the cost in Portugal rose by nearly 9%, of which about 6% was in wage costs and the remainder in social contributions and taxes.
Full-time workers in Portugal put in more hours than the eurozone average, working 1,680 hours per year against the average 1,629 hours.
|
Total |
Mfgr |
Building |
Retail |
Rooms & Food |
Finance Insurance |
Technical Scientific |
Education |
Health & social work |
|
|
Eurozone |
29.30 |
31.20 |
26.30 |
25.20 |
16.90 |
48.50 |
38.10 |
34.00 |
27.30 |
|
Portugal |
13.30 |
10.90 |
11.70 |
12.20 |
8.20 |
35.60 |
18.60 |
17.20 |
12.30
|
|
Spain |
21.20 |
22.40 |
20.90 |
17.90 |
13.80 |
39.60 |
24.00 |
23.70 |
22.30 |
|
UK |
21.80 |
21.40 |
22.80 |
17.60 |
12.60 |
35.50 |
29.30 |
23.70 |
21.40 |
|
Germany |
31.60 |
36.10 |
26.40 |
27.10 |
16.60 |
49.10 |
39.60 |
36.40 |
27.70 |
Comments
But obtaining skilled men, skill in metal and timber, is difficult
Huge gaps haves and have nots
Maybe like Slavs, they make good slaves and poor bosses
Just a suggestion Ed but we must differentiate between 'screwdriver' manufacturing plants - such as car manufacturers in Portugal and the far more valuable to an economy of 'transformers of original material' - such as those working with Portuguese leather and cork.
And the almost obscene differentials in rewards - amongst the highest in the EU - between the elite owners and their workers.
And, as the Bank of Portugal chief pointed out last month - the low standard of business management here.
Then there is the Chinese ... who are now being called the 29th state in the European Union due to using Portugal as a springboard.
So Chinese product is being unpacked and repacked as Portuguese product for export. Or being bolted into something else itself sourced from elsewhere.
Which again does not add much value so keeps wages low.
But without serious competition and modern ideas and thinking; and including other EU nationals in the equation - Portugal will forever be deficient.