UNIT LABOUR COSTS
|UNIT LABOUR COSTS
Term used to refer to labour costs per unit of production. They can be calculated in two ways: either from the ratio of labour costs per hour to hourly productivity, or from the ratio between total staff costs and real output. They are a major factor in price formation and therefore represent an important indicator of competitiveness.
Despite comparatively high rises in pay and labour costs, the Austrian economy (manufacturing industry in particular) exhibits a relatively favourable unit labour cost trend, since productivity increases are also above average. Since 1980 its relative unit labour costs, i.e. unit labour costs in relation to the weighted average of those of its trade partners, have fallen by 12%.