EU industrial structure - EU Bookshop - Europa

EU industrial structure 2011 — Trends and Performance
Developments in ULC are caused by changes in labour costs
per employee relative to labour productivity growth. High
labour productivity growth generated more favourable unit
FIgURE III.6: EU ULC (index, 1995 = 100)
160
150
140
130
120
110
100
90
FIgURE III.7: EU relative prices (Industry = 100)
115
110
105
100
95
90
85
62
Industry
Wholesale and retail trade
Financial intermediation and business services
Wholesale and retail trade
Financial intermediation and business services
labour costs in industry. EU ULC grew more in services than
in industry due to lower productivity growth, cf. Figure III.6.
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Source: own calculations using Eurostat data.
Taking the developments in Figure III.5 into account, relative
prices increased more in services sectors and relatively more
in financial intermediation than in wholesale and retail
relative to manufacturing. The relative price is the ratio of
two price indices, the value added deflator (2000 = 100) of
industry divided by the value added deflator (2000 = 100)
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source: own calculations using Eurostat data.
of market services. Between 1995 and 2007 the relative price
of industrial goods declined relative to the price of market
services. These evolutions may also reflect the higher level
of technical change and higher degree of competition in
industry including openness to trade compared to services
sectors in the EU, cf. Figure III.7.