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Monday, April 7, 2008

The promise of cheap and plentiful labor

"Companies that were attracted to formerly communist nations in eastern Europe by the promise of cheap and plentiful labor are finding less of both, as faster growth drives up wages and open borders encourage emigration. That is leading some businesses to rely more on automation and others to look for employees abroad or even quit the region.

``We are already seeing salaries going up,'' so the ``advantage is going down,'' European Union Regional Policy Commissioner Danuta Huebner, a former Polish minister who helped steer her country into the EU, said in an April 1 interview in Prague. ``That's why you also have companies moving towards cheaper locations.''"

Bloomberg.com: News

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