labour Costs Unexpected Dive 2.4%

Textile workers in North Carolina.Textile workers in North Carolina.

Photo: USDA / flickr

Q3 nonfarm productivity rose 3.1% quarter-over-quarter.  Unit labour costs fell 2.4%.Analysts were expecting a 2.5% rise in nonfarm productivity, and 0.7% decline in unit labour costs.

Unit labour costs are computed by dividing hourly compensation by labour productivity.

From the press release:

Manufacturing sector productivity grew 5.4 per cent in the third quarter of 2011, as output rose 4.7 per cent and hours decreased 0.8 per cent. Productivity jumped 9.9 per cent in the durable goods sector and increased 0.7 per cent in  the nondurable goods sector.  From the third  quarter of 2010 to the third quarter of 2011, manufacturing sector  productivity increased 3.0 per cent. Unit labour costs in manufacturing fell 4.6 per cent in the third quarter of 2011 and decreased 0.5 per cent over the last four quarters.

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