en 
According to a report by ECO, over the past three years, labour costs per unit produced have increased in most countries. This happens when workers' compensation (wages and other compensation) in nominal terms registers a growth above the increase in productivity.
This is the case of Portugal, which between the fourth quarter of 2019 and the first quarter of this year registered a 19.2% increase in labour costs per production, about 1.2 times above the average the OECD.
Among the 29 OECD countries with data on this matter, only Ireland had a drop in labour costs per wealth generated over the last three years. In the opposite direction is Lithuania which, in the last three years, has registered a growth of almost 40% in labour costs.
However, when inflation is considered for calculation purposes, Portugal jumps to the front of the pack, showing the highest real increase in labour costs per unit produced in the last three years among OECD countries.
According to OECD data, the real cost of labour per unit produced in Portugal rose by 4.9% between the fourth quarter of 2019 and the first quarter of this year, while on average for OECD countries there was a real decrease of 1.1% of labour costs.
“We are the country in Europe where the minimum wage is closest to the average wage”, recalls João Cerejeira, professor at the University of Minho, also noting that Portugal is one of the countries where the “minimum wage has risen the most in recent years”.
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Salaries are so low anyway. The Portuguese are very poor and it shows in every way.
By S from Other on 12 Jul 2023, 07:58
It's no surprise, considering that Portugal has the worst average wages in western Europe. The title would be just as accurate as "Portugal wages have the highest increase", but then you can't discretely insinuate that there was already a giant disparity between wages and productivity.
By AB from Lisbon on 12 Jul 2023, 15:14
It is normal that you have an increase in labor costs. Almost every company is paying minimum wage specially in the tourist section wich is one of the sectors that brings more money to the country. People don't want to work to get paid 600€ after tax and pay 900€ rent. Most companies will have to increase their wages to attract employees and still won't be enough. Not to mention that most companies didn't invest in more efficient equipment to increase the output of products..
By Pedro from Algarve on 12 Jul 2023, 15:32
Problem is we have a huge disparity here in Portugal , some people have a lot of money while others work just as hard if not harder and have little money.it is unfair for the new generation mostly because we have to pay high rents and utilities with average salaries. I work full-time earning 1200 illiquid and I'm living in a room still because I'm not married and can't afford to pay the rising rent prices while old people still pay low rent prices and that's why most don't complain. Add to this the fact that rich people come here and pay absurd rents , it's a no brainer that our politics keep letting this happen. Landlords become richer and richer , and the tax the goverments get from houses and cars and properties is so high and profitable that I don't see them changing the laws anytime soon. Housing and expenses should be minimal, credit shouldn't even be needed if things were fair.so yeah nothing will improve unless laws are changed , and quickly !!!
By Mr. Olympia from Lisbon on 13 Jul 2023, 10:45
All the comments are missing the point which is that wage increases that are not funded by productivity increases lead to an increase in employers' costs which will ultimately be passed on in higher prices i.e. inflation. It doesn't matter whether your average wage is €800 per month, or €10,000 per month. It is the rate of change of wages relative to productivity growth that is important, and the article is clearly stating that the former has been far higher than the latter.
So be careful what you wish for: the more the government jacks up the minimum wage, the higher and faster prices will increase, particularly in labour-intensive industries such as leisure, restaurants and hotels. If you want Portugal to remain a cheap country for eating out and staying in hotels, don't ask for the minimum wage to be increased aggressively each year. You can't have it both ways!
By Billy Bissett from Porto on 13 Jul 2023, 13:49