12/05/2023

Q3 2023 Labor Costs Reflect Surprise Decline

Unit labor costs fell 0.8 percent

The cost of labor unexpectedly declined in the third quarter, providing at least some relief on the inflation front, the Labor Department reported Thursday.

Unit labor costs, a measure of hourly compensation against productivity, fell 0.8 percent for the July-through-September period at a seasonally adjusted rate. Economists surveyed by Dow Jones had been looking for a gain of 0.7 percent. On a 12-month basis, unit labor costs increased 1.9 percent.

The breakdown reflected a 3.9 percent increase in hourly compensation, offset by a 4.7 percent rise in productivity.

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