OECD Unit Labour Cost growth slows to 0.3% in the third quarter of 2015 | WPN World People News

Growth in unit labour costs (ULC) in the OECD area slowed marginally to 0.3% in the third quarter of 2015, compared with 0.4% in the previous quarter. Growth in both compensation costs (0.5% in the third quarter, compared with 0.7% in the second quarter) and labour productivity (0.2%, compared with 0.4% in the previous quarter) slowed in the third quarter of 2015.

Early Estimates of Quarterly Unit Labour Costs

Seasonally adjusted data, Total economy

ULC growth in the United States and the United Kingdom held steady at 0.5% in the third quarter, as slower growth in compensation costs was offset by slower productivity growth.

ULCs picked up in Japan in the third quarter (0.5%, compared with 0.2% in the previous quarter), as labour productivity decreased (minus 0.1%, after flat growth in the previous quarter), while compensation costs rose (by 0.4%, compared with 0.3% in the previous quarter).

In the Euro area, ULC growth slowed marginally (to 0.1%, compared with 0.2% in the second quarter), with labour productivity unchanged for the second straight quarter. ULC growth in the Euro area was lower than the OECD average for the fourth consecutive quarter.

Within the Euro area, the adjustment process remains mixed. While ULCs fell in Belgium, Ireland, Slovenia, Spain, and particularly in Portugal (by minus 1.5%), they picked up strongly in Italy (to 0.4%, after a 0.5% fall in the second quarter). ULCs also grew in Germany (0.4%) and France (0.1%) but at a slower pace than in the previous quarter.

Source: Organization for Economic Co-operation and Development