First-Quarter US Labor Costs Marked Down on Weaker Output, Hours
- Annual unit labor costs rose at slowest pace in three years
- Real hourly compensation marked lower, productivity tepid
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US labor costs increased in the first quarter by less than previously reported, reflecting downward revisions to economic output and hours worked and consistent with other signs of moderating activity.
Unit labor costs, or what a business pays employees to produce one unit of output after taking into account changes in productivity, rose at a revised 4% annual rate, down from an initially reported 4.7%, according to Bureau of Labor Statistics figures published Thursday.