US Labor Costs Rise Much Less than Expected

Unit labor costs in the US nonfarm business sector increased an annualized 0.9% in the second quarter of 2024, following a downwardly revised 3.8% rise in the first three months of the year, and well below forecasts of a 1.8% increase, preliminary estimates showed.

It reflects a 3.3% increase in hourly compensation and a 2.3% rise in productivity.

Unit labor costs increased 0.5% over the last four quarters, the lowest rate since the third quarter of 2019.

Unit labor costs in the business sector went up 1.1% and rose 3.2% in the manufacturing sector.