Technical Notes (PDF)
Country Notes and Data Sources (PDF)
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Elimination of ILC
Hourly compensation costs, or the hourly cost to the manufacturer of employing labor, is one of the most important indicators of international competitiveness in manufacturing. Average measures of compensation costs for the manufacturing sector as a whole, however, often mask important cost differences and competitiveness among sub-manufacturing industries. Under an international comparative lens, this report highlights the differences in compensation costs across both countries and industries.
Within each country, industry compensation costs can vary greatly from average compensation in total manufacturing (see Chart 1). The overall spread of compensation costs across industries can be compared across countries by looking at the relativeand not the absolutedistance of costs between the highest and lowest compensated industries. In 2012, for example, the highest paid industry was more than double the lowest paid industry in 13 of 23 countries compared. The greatest variation in compensation across industries occurred primarily in Brazil and Mexico and countries in Eastern Europe and Asia. Historically, the highest and lowest compensated industries have tended to be similar across countries. In 2012, coke and petroleum products and pharmaceuticals were among the highly paid industries, while the lower paid industries included apparel and wood products manufacturing.