New data on the labour market is out.
Nonfarm productivity climbed by 0.9% in the second quarter, which was higher than the 0.6% increase expected.
During the same period, unit labour costs increased by 1.4%. Economists were looking for a 1.2% gain.
In other words, companies are squeezing more out of their employees, and they’re paying them more to do it.
Economists argue that this is not a sustainable trend. Eventually, companies will have to start hiring more aggressively.