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Labor in the agricultural sector has become considerably more expensive

18 July 2022 - Redactie Boerenbusiness

Labor costs in the agricultural sector have risen sharply last year. Moreover, the increase is much greater than the national average. Agriculture is one of the top three sectors where labor costs have increased the most. This is evident from figures from Statistics Netherlands.

Last year, wage costs per hour worked rose by 1,3%. This means that the increase is leveling off, in 2020 there was still an increase of 4,3%. Since 2016, the percentage increases have surpassed each other every year, but that came to an end last year.

Labor shortages
The increase was largest in the information and communication sector with an average wage cost increase of 7%. Agriculture is also one of the frontrunners with a plus of 3%. Many agricultural sub-sectors are struggling with major staff shortages. This problem does not only arise in the primary sector, but also in the processing industry. In financial services, wage costs increased by 4%. Labor costs in the catering industry fell by 10%. This is due to the lockdowns caused by the corona pandemic. According to Statistics Netherlands, total wage costs were €410 billion last year, 5,5% higher than the year before.

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