The endless labor cost discussion

To maintain our social system, there is a need to create 400.000 jobs towards 2020. An objective calculation shows that to increase labour intensity of economic growth and to upgrade the employment rate, a wage cost reduction of 5% is only a first step.

If it is the objective to increase employment levels again, then it will be necessary to complete the entire gap, not only the “productivity corrected” gap. If the social dialogue once again proved its raison for existence anno 2013 by  bending the practice of job killing seniority premiums. In theory we have national consultative bodies that could take the macro effects of the wage agreement into account. That they do so.