US unit labor costs rose more than initially thought in the third quarter, suggesting that inflation may remain high for a while.
The Labor Department said on Tuesday that unit labor costs — the price of labor per unit of production — accelerated to an annualized rate of 9.6% in the last quarter, up from the 8.3% rate released in November. .
Labor costs rose 5.9% in the April-June quarter, increasing at a rate of 6.3% compared to a year ago, instead of the 4.8% rate previously reported.
Economists polled by Reuters predicted that unit labor costs would rise at an unrevised pace of 8.3%.
The pandemic-related shortage, amid troubled supply chains, has driven inflation well above the Federal Reserve’s 2% target.
Wages are also on the rise, with companies scrambling to find workers.
Hourly compensation increased at a rate of 3.9% in the third quarter, instead of the 2.9% rate reported previously.
Reference: CNN Brasil
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