US Labor Costs Rise by Most in a Year as Productivity Cools
- Unit labor costs jump 4.7% after muted second half of 2023
- Sustained productivity slowdown could limit inflation progress
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US labor costs increased in the first quarter by the most in a year as productivity gains slowed, potentially adding to risks inflation will remain elevated.
Unit labor costs, or what a business pays employees to produce one unit of output after taking into account changes in productivity, climbed at a 4.7% annual rate. That marked a notable jump after muted gains in the second half of 2023.