Labour productivity is increasing, but wages are not keeping pace

By: Together Abroad 04-01-2016 4:15 PM
Categories: * Daily employment news, ** HR daily news,
Since the financial crisis of 2008, labour productivity per employee has increased, while wages have not risen. According to the CBS, the reason for this would be that there are higher numbers of unemployed personel after 2008, and that there are more and more flexible workers.

CBS has done research on labour productivity per employee after the outbreak of the crisis and compared it to the salary that an employee receives since 2008. Until 2008, there is a strong growth in labour productivity. When the crisis erupted in 2008, this productivity was reduced due to insufficient demand for new staff.

From 2009, labor productivity began to increase again, but wages remained the same as before. There was higher unemployment, which led to wages fixing and employees could not demand higher wages. Additionally, the number of flexible workers and self-employed persons increased significantly. Also, flexible workers have their wages figured out on hours worked, contrasted to wages of workers with permanent contracts.

CBS reports that the wage per worker since last year has seen a slight upward trend, though not significantly.
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