Labor costs fall significantly after sustained period of increases in mid-1990s

Following a long period of rapid increases in the cost of labor, the last two years have seen those costs fall systematically. According to the latest analysis by the Economy Ministry, Polish labor is still cheaper than in the U.S., Japan and several more developed European countries. According to the Ministry, between 1995 and 1998, the growth pace of labor costs was higher than output growth, due to the rapid increase in wages, insurance payments, and other numerous burdens put on employers. In 1999 the cost of labor fell to 45% of GNP from 45.8% in 1998. Data for 2000 is as yet inconclusive. (Rzeczpospolita, p.B2) J.K.