This is particularly the case for European exporters, such as Germany, which are being hurt by the risingcompetitiveness of Japanese exporters due to the lower yen.
Upward pressure on pay is likely to lead to more job losses in Italy and Spain, which are already struggling with poor competitiveness and rising unemployment.
That coincided with slowing export growth -- it contracted 11% in April -- as rising wages and other costs chipped away at the competitiveness of Thai textiles, footwear and other products.
In New Jersey, for instance, the state government struggles to finance critical public works projects that are vital for long-term economic competitiveness, while at the same time public employee benefits are rising at double-digit annual rates.