US Labor Costs Revised Slightly Down

Unit labor costs in the US nonfarm business sector increased an annualized 0.4% in the fourth quarter of 2023, compared to a preliminary estimate indicating a 0.5% rise and market forecasts of a 0.6% advance.

It reflects a 3.6% increase in hourly compensation and a 3.2% gain in productivity.

Unit labor costs in the total manufacturing sector surged 5.3% in the fourth quarter of 2023, reflecting a 6.7% increase in hourly compensation and a 1.3% rise in productivity.

The business sector saw a rise of 0.4%.

Compared to the fourth quarter of 2022, unit labor costs increased 2.5%, compared to an earlier estimate of 2.3%.

Annual average unit labor costs rose by 3% from 2022 to 2023, slightly higher than the preliminary estimate of 2.9%.