Labour productivity exceeds growth of labour costs in Estonia in H1

Labour productivity exceeds growth of labour costs in Estonia in H1
Estonia's labour productivity increased faster than its growth of labour costs in the first half of the year, according to The Bank of Estonia
By bne IntelliNews October 26, 2017

Labour productivity increased faster than the growth of labour costs in the Estonian business sector in the first half of the year, Eesti Pank (The Bank of Estonia) announced on October 25.

This is the first such occurrence in “several years,” the bank said, and that it is a welcome development in the Estonian economy, which has struggled with the pool of labour force becoming shallower due to emigration and its ageing population.

Growing productivity has helped Estonian businesses attain a growth in profit in the first half of the year, Eesti Pank also noted. “Had profits fallen any further, production in Estonia may have become less attractive and the risk of a sharp cut in jobs in the event of a shock to the economy could have increased,” the bank said.

It warned, however, against taking the improving productivity to growth ratio as a given. “Without further investment in production technology, the rise in productivity may prove only temporary,” Eesti Pank’s Orsolya Soosaar said in a comment.

At the beginning of the year, The International Monetary Fund had said in a report that Estonia needed to enhance its labour productivity in order to maintain its competitive edge.

 

 

 

 

 

Related Articles

Vilnius promoted with saucy “G-spot” ad campaign ahead of papal visit

Advance viewings of a suggestive new advertising campaign for the Lithuanian capital have sparked a row between the city authorities and the local Catholic Church. Adverts proclaiming ... more

Drought wreaks havoc on Lithuanian farmers as state declares nationwide emergency

The Lithuanian government declared a nationwide state of emergency on July 4 because of drought that is expected to hit this year’s crops severely. Vilnius will seek to ensure Lithuanian farmers ... more

Poland, Baltics sign off on roadmap to sync power grids in 2025

Poland, Estonia, Latvia and Lithuania have signed a political agreement establishing a roadmap towards synchronizing the Baltic states’ power grids with that of the continental European ... more

Dismiss