US Labor Costs Rise More Than Expected in Fresh Inflation Risk
- Revisions points to much stronger compensation gains in 2024
- Productivity rose at a 2.2% annual pace in the third quarter
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US labor costs grew at a surprisingly strong pace in the third quarter, and was much stronger than previously thought earlier this year, which risks fanning inflationary pressures.
Unit labor costs, or what a business pays employees to produce one unit of output, increased at a 1.9% annualized rate, following significant upward revisions to prior quarters, data from the Bureau of Labor Statistics showed Thursday.