Friday, Nov 03, 2006

US labour costs rising at fastest pace for quarter of a century

TimesOnline: Surge in US labour cost brings new fear of inflation

Further disturbing evidence from the US that inflation is awaking from its slumber. Unit labour costs measure the cost to the employer of wage and other costs for each unit of production and are rising at their fastest pace for 25 years. When production rises this helps offset the cost of wage rises and benefits but when productivety is flat, as it is currently the costs must be carried by the employer which is typically handed down to the consumer.

Posted by denzil @ 03:07 PM (357 views)
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