Economic Trends: Destructive Power of Salaries

Ljubljana, 17 January - EIPF/ECONOMIC/TRENDS/ANALYIS
Destructive power of salaries over employment and the competitive ability of economy was still strongly present in Slovenia's economy, revealed the findings of the Economic Institute at the Ljubljana Faculty of Law (EIPF) published in December's issue of Economic Trends. Despite a high level of salary costs, which has been present since after 1993, a real salary growth cannot get stabilized. Due to a considerable salary growth in 1996 and since the salary dynamics is partly linked to a great majority of social transfers (pensions), the pressure on costs - that is on suppressing the economic activities and/or employment as well as on public expenditure - is to be on the increase also in 1997.