US Labor Costs Rise 3% in Q4

Unit labor costs in the US nonfarm business sector increased 3.0 percent in the fourth quarter of 2024, after a 0.5 percent in the third quarter and below market expectations of 3.4 percent, preliminary data showed.

It reflects a 4.2 percent increase in hourly compensation and a 1.2 percent increase in productivity.

Unit labor costs increased 2.7 percent over the last four quarters.

Meanwhile, unit labor costs in the total manufacturing sector increased 3.3 percent, reflecting a 4.1-percent increase in hourly compensation and a 0.8-percent increase in productivity.