In the 1990s, high wages and social costs, whether paid directly by employers or indirectly by taxpayers, were eroding the productivity of European workers. According to OECD statistics, industrial production in Europe in 1993 was virtually at the same level as in 1989, although wages had risen from 7-8% per year. Per-unit costs of output in Germany were 35% higher than in Japan, and 540% higher than in the USA.