FX.co ★ US Unit Labor Cost Growth Cools to 1.8% in Q1, Down from 2.3%

Unit labor cost growth in the United States eased in the first quarter, with the indicator rising 1.8% quarter-over-quarter, down from a 2.3% increase recorded in the previous quarter. The data, updated on 4 June 2026, suggest a moderation in labor cost pressures at the start of the year.

Both readings refer to quarter-over-quarter changes. The latest 1.8% figure for the first quarter of 2026 compares the change in labor costs to the prior quarter, while the earlier 2.3% reading reflected the change in the previous quarter relative to the one before it. The slowdown may be watched closely by markets and policymakers as they assess the trajectory of wage-driven inflation and corporate cost structures going forward.