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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (16263)	11/18/2004 8:17:35 PM
From: mishedlo	Respond to of 116555

Foreign labor costs gaining on U.S. Thursday, November 18, 2004 10:28:20 PM WASHINGTON (AFX) - Because the dollar weakened, the typical foreign factory worker made 75 percent what an American worker did in 2003, up from 67 percent in 2002, the Labor Department said Thursday As the U.S. dollar weakened against other currencies, factory employment costs measured in U.S. dollars increased an average of 11.9 percent in the 30 countries, and 21 percent in Europe In Europe, total employment costs were higher than total employment costs for American workers for the first time since 1999 The United States has been following a tacit policy of a weaker dollar specifically to make U.S. workers and the goods they produce more competitive at home and abroad. European officials (joined by Canada, Australia and New Zealand) complain that they have borne the brunt of the global adjustment in exchange rates, with China and other Asian nations manipulating their currencies to keep them weak and their exports competitive Total labor costs were $21.97 an hour for factory production workers in the United States and $24.22 in Europe. In the four newly industrialized economies in Asia (Hong Kong, Korea, Singapore and Taiwan), employment costs averaged $7.57 an hour The Labor Department survey includes employment costs in 30 economies. China, India and many other countries with extremely low labor costs were not included because of data limitations. Among the 30 foreign economies, hourly compensation measured in U.S. dollars increased in all but three: Mexico, Hong Kong and Taiwan Factory labor costs in the United States increased by 4.1 percent in 2003, a bit faster than the 3.6 percent average gain in the 30 other countries when measured in their local currencies. Their currencies appreciated by an average of 8.1 percent against the dollar in 2003, the Labor Department said. The dollar has weakened further in 2004, with the euro hitting an all-time high above $1.30 this week. fxstreet.com