US Labor Costs Marked Down in First Quarter Due to Weaker Output and Hours

Reported 6 months ago

US labor costs for the first quarter were revised down as economic output and hours worked were weaker than initially reported. Unit labor costs rose at a revised 4% annual rate, lower than the initial 4.7%, with year-on-year costs up 0.9%. The Federal Reserve aims for lower labor costs through increased productivity, seen through efficiency gains or technological improvements. However, the report showed labor costs rose at a slower pace due to decreased output, affecting real hourly compensation. Companies are focusing on efficiency amidst high interest rates, while productivity and compensation figures for the first quarter were also revised downwards.

Source: YAHOO

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