Unit labor costs in the US nonfarm business sector increased an annualized 1.2 percent in the third quarter of 2018, rebounding from a 1 percent drop in the previous period, which was the largest fall since the third quarter of 2014. It mainly reflects a 3.5 percent rise in hourly compensation and a 2.2 percent gain in labor productivity. It compares with market expectations of a smaller 1 percent increase, preliminary estimates showed. Year-on-year, unit labor costs increased 1.5 percent. Labour Costs in the United States averaged 59.65 Index Points from 1950 until 2018, reaching an all time high of 109.66 Index Points in the third quarter of 2018 and a record low of 17 Index Points in the first quarter of 1950.
Labour Costs in the United States is expected to be 109.98 Index 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 States to stand at 110.80 in 12 months time. In the long-term, the United States Nonfarm Unit Labour Cost is projected to trend around 113.40 Index Points in 2020, according to our econometric models.