FX.co ★ US Labor Costs Rise More Than Expected

In the first quarter of 2025, unit labor costs in the U.S. nonfarm business sector rose by 6.6%, surpassing the initial estimate of 5.7%. This rise is attributed to a 5.0% increase in hourly compensation coupled with a 1.5% decline in productivity. Over the past four quarters, unit labor costs have grown by 1.9%. In the total manufacturing sector, unit labor costs climbed by 2.0%, driven by a 6.4% rise in hourly compensation alongside a 4.4% increase in productivity. This marks a 0.3% increase in manufacturing unit labor costs compared to the same quarter from the previous year.