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It is important to put this data in context. The data shows labour costs per hour but does not take into account productivity.

If we include productivity ywe can then calculate labour costs per unit of output.

Output per person employed in Bulgaria and Romania is lower than for the European Union as a whole, but not by a factor of ten. So the gap in unit labour costs is lilely to be significantly smaller.

Relatively low unit labour costs and attractive corporation tax rates and lower land prices have been three factors encouraging an inflow of foreign direct investment into many of the European Union’s newer member states.