Unit Labour Cost Position Weaker in 1992

Having improved steadily from 1988 to 1991 Austria's international competitive position in terms of unit labour costs in manufacturing deteriorated in 1992. With the business cycle heading downwards productivity growth slowed and unit labour costs rose by 2.2 percent following a decade of broad stability. While unit labour costs in competitor countries rose 1½ percentage points faster on average than in Austria, relative unit labour costs in Austrian manufacturing edged up 0.4 percent in a common currency as the exchange rate turmoil in autumn 1992 led to an effective revaluation of the Austrian schilling by about 2 percent.