Over the quarter, output per hour of labor rose 2.3% annualized, while compensation per hour rose by 2.2%. Unit labor costs, the measure of cost of a unit of output per hour, therefore fell by a slight 0.1%. Inflationary pressure from the labor markets remain minimal if existent at all due to large amounts of labor market slack leading to limited pricing power on the part of workers.
|(SAAR) %||Q3 2010||Q2 2010||Q1 2010||Q4 2009||Q3 2009||Q2 2009|
|Output Per Hour||2.3||-1.8||3.9||6.0||7.0||8.4|
|Unit Labor Costs||-0.1||4.9||-4.6||-4.2||-3.3||0.6|