2003 International Comparisons of Hourly Compensation Costs in Manufacturing — 2004-11-18

Average hourly compensation costs in U.S. dollars for production workers in manufacturing in 30 foreign economies climbed to 75 percent of the U.S. level in 2003, up from 67 percent of the U.S. level in the previous year, according to data issued by the Bureau of Labor Statistics, U.S. Department of Labor. Overall compensation costs relative to the United States increased in nearly all countries in 2003, with sharply rising costs in Europe contributing the most to the rising costs. European costs moved above U.S. costs for the first time since 1999. (See table 1.) Data for the Czech Republic, a relatively low labor cost country, are included in this release for the first time. In the United States, hourly compensation costs for production workers in manufacturing increased 4.1 percent in 2003, to $21.97.