US Labor Costs Rise More Than Expected

Unit labor costs in the US nonfarm business sector increased an annualized 1.9% in the third quarter of 2024, following an upwardly revised 2.4% rise in the previous period and well above forecasts of 1%, preliminary estimates showed.

It reflects a 4.2% increase in hourly compensation and a 2.2% rise in productivity.

Unit labor costs increased 3.4% over the last four quarters.

Meanwhile, unit labor costs in the manufacturing sector increased 5.3%, due to a 6.4% gain in hourly compensation and a 1% rise in productivity.