Eurozone labour costs jump, Greek wages sink

Labour costs jumped across the eurozone in the first quarter of 2011 but fell or barely rose in some weaker states, data showed, widening the purchasing power gap between workers in the region's core and its periphery.
European Union's statistics office Eurostat said on Monday hourly labour costs in the 17 countries using the euro were up 2.6 percent year-on-year, rising from 1.5 percent in the last three months of 2010 and keeping the region on track for an interest rate hike next month.
Wages rose 2.3 percent while other costs such as social security contributions and employment taxes jumped 3.6 percent. In industry, total hourly labour costs rose 2.8 percent, with wages up 2.6 percent and other costs rising 3.5 percent. In Greece, which is struggling to regain competitiveness amid a deep recession and the threat of a debt default, total labour costs fell 6.8 percent, with wages down 6.2 percent and other costs 9.3 percent.