BERLIN, June 9 (Xinhua) -- The Federal Statistical Office reported on Friday that German labor costs per hours worked rose by 2.5 percent in the first quarter of 2017 in comparison with the first quarter of 2016.
The report also shows that there has been a 0.5 percent rise, in seasonally and calendar adjusted terms, since the previous quarter.
In calendar adjusted terms the gross earnings rose by 1.9 percent this quarter compared to the first quarter of 2016. Non-wage costs were also up by 4.5 percent.
In the EU, the increase in labor cost averaged 1.6 percent compared to the 2.5 percent in Germany, high above the EU average for the sixth year in a row. In France, the increase in labor cost was considerably lower than in Germany, at 1.5 percent.
The marked year-on-year rise was mainly due to sick leave, which was much higher than the previous year. Higher labor costs can also be attributed to the rising number of hours worked by German employees as the country's unemployment rate hits lows not seen since the reunification in 1989.
For several years, slow wage growth helped propel Germany's exports in a time of global recession. Experts believe Germany will remain competitive despite the continued labor cost rise thanks to its high labor productivity.
