Unit labour costs in the UK rose by 27.4 percent from a year earlier in the second quarter of 2020, the largest increase since records began in 1977, driven by a fall in gross value added over the quarter. Also, government programmes for furloughed workers have helped keep labour costs elevated despite the fall in production activities. source: Office for National Statistics

Labour Costs in the United Kingdom averaged 65.39 points from 1977 until 2020, reaching an all time high of 131.40 points in the second quarter of 2020 and a record low of 19.60 points in the first quarter of 1977. This page provides the latest reported value for - United Kingdom Labour Costs - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. United Kingdom Labour Costs - data, historical chart, forecasts and calendar of releases - was last updated on November of 2020.

Labour Costs in the United Kingdom is expected to be 102.41 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Labour Costs in the United Kingdom to stand at 132.71 in 12 months time. In the long-term, the United Kingdom Labour Costs is projected to trend around 103.54 points in 2021 and 105.09 points in 2022, according to our econometric models.

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United Kingdom Labour Costs

Actual Previous Highest Lowest Dates Unit Frequency
131.40 108.10 131.40 19.60 1977 - 2020 points Quarterly
SA, 2018=100

Calendar GMT Actual Previous Consensus TEForecast
2018-01-05 09:30 AM Q3 0.4% 0.7%

News Stream
UK Unit Labour Costs Rise 0.6% in Q4
Unit labour costs across the whole UK economy increased by 0.6 percent quarter-on-quarter in the three months to December 2019, following a 0.1 percent advance in the previous period. Year-on-year, labour costs rose by 2.4 percent in the fourth quarter, the least in over two years, as growth in labour costs per hour outpaced the growth in labour productivity.
UK Labour Costs Rise 0.5% in Q3
Labour costs in the UK increased by 0.5 percent quarter-on-quarter in the three months to September 2019, following a 1.7 percent climb in the previous period. Year-on-year, labour costs rose by 3.6 percent in the third quarter as wages rose faster than gains in productivity.

United Kingdom Labour Costs
In the UK, unit labour costs (ULCs) reflect the full labour costs, including social security and employers’ pension contributions, incurred in the production of a unit of economic output. Changes in labour costs are a large factor in overall changes in the cost of production. If increased costs are not reflected in increased output, for instance, this can put upward pressure on the prices of goods and services – sometimes referred to as “inflationary pressure”.