US Labor Costs Remain Constrained

Productivity and unit labor costs for the US were released today. Unit labor costs fell slightly last quarter on an annualized basis as productivity increased slightly more on an annualized basis in the third quarter compared to the second quarter. Overall, the year-over-year change in unit labor costs remains below the 65-year mean (granted over the past two decades unit labor costs have spent the majority of time below the mean). Unit labor costs are one more data point highlighting a lack of an inflation threat in the United States.