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By the Numbers: Labour costs and jobless levels

Workers at UI Contact join the union, UFCW 501Ottawa – March 2, 2014 – A new report by the U.S. government paints an interesting picture of the relationship between factory labour costs and jobless levels, when viewed alongside unemployment rates.

And if you think high wages and benefits drive up unemployment, think again.

And if you think low wages and benefits hold unemployment down, think again.

Here's what you get:

The Top 16

1. Norway, total average hourly labour cost of $64.15 in 2011 (Unemployment at 3.3 per cent in 2011)

2. Switzerland $60.40 (4.1 per cent)

3. Belgium $54.77 (7.1 per cent)

4. Denmark $51.67 (7.6 per cent)

5. Sweden $49.12 (7.5 per cent)

6. Germany $47.38 (5.9 per cent)

7. Australia $46.29 (5.1 per cent)

8. Finland $44.14 (7.7 per cent)

9. Austria $43.16 (4.1 per cent)

10. Netherlands $42.26 (4.4 per cent)

11. France $42.12 (9.3 per cent)

12. Ireland $39.83 (14.4 per cent)

13. Canada $36.56 (7.4 per cent)

14. Italy $36.17 (8.4 per cent)

15. Japan $35.71 (4.5 per cent)

16. U.S. $35.53 (8.9 per cent)

The Bottom 10

1. Philippines $2.01 (7 per cent)

2. Mexico $6.48 (5.3 per cent)

3. Poland $8.83 (9.6 per cent)

4. Hungary $9.17 (10.9 per cent)

5. Taiwan $9.34 (5.2 per cent, from other sources)

6. Estonia $10.39 (12.5 per cent)

7. Brazil $11.65 (6 per cent, from other sources)

8. Slovakia $11.77 (13.5 per cent)

9. Portugal $12.91 (12.7 per cent)

10. Czech Republic $13.13 (6.7 per cent)

In Canada, unemployment was running at 7.8 per cent in Ontario and Quebec in 2011, well above that of the resource-rich Prairie provinces and well below that of Atlantic Canada, though not much higher than the jobless level of British Columbia.

What this all shows is that there is no pattern, which is food for thought when the issue next arises.

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