Companies will then raise prices to cover the higher wage costs.

Bearing down on wage costs, and hope they export their way out of trouble.

Price increases have followed to pay for the higher wage costs.

"Inflation still looks low, and with wage costs rising by less than 3 percent, it does not seem likely to increase much."

He said the tight labor situation had bid up the company's wage costs.

Germany has a slightly lower rate at 8.1 percent, but its wage costs are nearly double Britain's.

However wage costs and social security are far higher than those in Morocco.

Of course the very high wage costs have been invoked.

So much more is required than simply invoking high wage costs.

A 25 percent increase in wage costs will mean significant job destruction.