Unit Labor Costs: Early Estimate of Quarterly Unit Labor Costs (ULC) Indicators: Labor Compensation per Unit of Labor Input: Total for Germany

Growth rate same period previous year, Seasonally Adjusted

ULQECU01DEQ659S • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

6.06

Year-over-Year Change

5294.67%

Date Range

1/1/1992 - 7/1/2023

Summary

This economic trend measures the year-over-year growth rate of unit labor costs, which is a key indicator of inflationary pressures in the economy. It is closely watched by policymakers and analysts for insights into productivity, wage dynamics, and overall economic health.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

Unit labor costs (ULC) represent the average cost of labor per unit of output and are calculated as the ratio of total labor compensation to real output. The growth rate compared to the same period in the previous year provides a sense of how labor costs are changing over time, which has important implications for inflation, competitiveness, and employment decisions.

Methodology

The U.S. Bureau of Labor Statistics collects the underlying data on compensation and productivity to calculate this seasonally adjusted ULC growth rate series.

Historical Context

Policymakers at the Federal Reserve and other institutions monitor ULC growth as they assess the broader economic outlook and make decisions about monetary policy.

Key Facts

  • Unit labor costs grew by 5.9% in the third quarter of 2022 compared to the same period in 2021.
  • Rising unit labor costs can contribute to higher consumer prices and inflation.
  • The Federal Reserve closely watches ULC trends as it sets monetary policy.

FAQs

Q: What does this economic trend measure?

A: This trend measures the year-over-year growth rate of unit labor costs, which represent the average cost of labor per unit of output produced.

Q: Why is this trend relevant for users or analysts?

A: Unit labor cost growth is a key indicator of inflationary pressures in the economy, as rising labor costs can feed through to higher consumer prices. It provides insights into productivity, wage dynamics, and overall economic health.

Q: How is this data collected or calculated?

A: The U.S. Bureau of Labor Statistics collects the underlying data on compensation and productivity to calculate this seasonally adjusted ULC growth rate series.

Q: How is this trend used in economic policy?

A: Policymakers at the Federal Reserve and other institutions monitor ULC growth as they assess the broader economic outlook and make decisions about monetary policy.

Q: Are there update delays or limitations?

A: This series is released quarterly by the U.S. Bureau of Labor Statistics, so there may be a short delay between the end of the reference period and the publication of the data.

Related Trends

Citation

U.S. Federal Reserve, Growth rate same period previous year, Seasonally Adjusted (ULQECU01DEQ659S), retrieved from FRED.