OECD Unit Labour Cost growth picks up to 0.5% in the fourth quarter of 2015 | WPN World People News

Growth in unit labour costs (ULCs) in the OECD area accelerated to 0.5% in the fourth quarter of 2015 (compared with 0.2% in the previous quarter), the highest rate since the first quarter of 2014. Compensation costs rose by 0.5%, while labour productivity growth was flat.

Early Estimates of Quarterly Unit Labour Costs

Seasonally adjusted data, Total economy

ULC growth picked up in the United States in the fourth quarter (0.6%, compared with 0.3% in the previous quarter), as labour productivity marginally decreased (minus 0.1%) and compensation costs rose (by 0.5%). ULCs also rose by 0.6% in Canada (compared with a decline of 0.2% in the previous quarter), with the increase fully accounted for by growth in compensation costs. ULCs grew by 0.4% in Japan in the fourth quarter (the same rate as in the previous quarter), reflecting a decrease in labour productivity (minus 0.3%) and flat compensation costs.

In the United Kingdom, ULC growth slowed to 0.2%, as labour productivity surged (1.5%, compared with minus 0.1% in the previous quarter), almost entirely offsetting robust growth in compensation costs (1.7%, compared with 0.2% in the previous quarter).

In the Euro area, ULC growth accelerated to 0.5% (compared with 0.2% in the previous quarter), with labour productivity unchanged for the third straight quarter.

Within the Euro area, the adjustment process remains mixed. ULCs grew marginally in France and Italy (0.2%) and picked up strongly in Germany (up 1.0%, compared with 0.5% in the previous quarter). ULC growth also accelerated in Portugal (up 0.3%, compared with a fall of 1.6% in the third quarter) and Spain (up 0.5%, after falls of 0.2% in the second and third quarters). ULCs fell in Belgium for the fourth consecutive quarter, while they were unchanged in Greece.

Source: Organization for Economic Co-operation and Development