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He lowered labor costs by reducing turnover and the expense of constantly training new hires.
By subsidizing the hiring of temporary employees, the federal government lowered labor costs and kept some employers afloat through the recession.
Union contracts negotiated since the 1991 recession have lowered labor costs, the wave of mergers that mired operations and slowed trains to a crawl seems to have ended, and soaring natural-gas prices have stimulated demand for coal, which is shipped by rail.
That lowered labor costs, shortened the supply chain and shrank inventory.
Calculations by Eurofund (2011) suggest that the immediate public costs accruing from youth neither in education nor in employment (NEET) in the EU-26 amounted to 120 billion euros (1% of GDP) in 2008, and to 153 billion euros (1.2% of GDP) in 2011, not accounting for discounted future costs and foregone payments due to the lowered labor market attachment in the long run.
5. Lowered labor costs.
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And by lowering labor costs, corporate migration serves to keep inflation under control.
Moreover, operating in what malls call "temporary leasing spaces" also lowers labor costs.
"It's about lowering labor costs," said Peter Gottal, a spokesman for Siemens, which is based in Munich.
"This was the only real option for lowering labor costs and increasing employment," said Kristin Dziczek, director for the labor and industry group at the Center for Automotive Research.
These improvements include using fewer raw materials, reducing energy requirements and lowering labor costs.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com