Rise in first quarter US unit labour costs revised sharply lower

US labour costs fell more quickly than expected at the start of 2019, as the rate of increase in hourly compensation was revised lower.

According to the Department of Labor, US unit labour costs shrank at a annualised pace of 1.6% over the first three months of 2019, as hourly compensation rose by 1.8% but labour productivity dropped at a pace of 3.4%.

Previously, Labour had estimated the decline in labour costs at 0.9%, estimating that hourly compensation rose by 2.6% and pegging the gain in productivity at 3.6%.