Below is a chart and brief excerpt from today's Early Look written by Director Of Research Daryl Jones
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It might surprise you too, but unit labor costs in the economy, based on data tracked by my colleague Darius Dale, are rising at the fastest pace since the early 1980s. We’ve highlighted this in the Chart of the Day, but needless to say we may still be only in the middle innings for that part of the labor cycle. In fact, in the latest report from the BLS, hourly -compensation was up +20.4% and unit labor costs were up 12.2%. Meanwhile, output was down -38.9%. Something doesn’t smell right in the state of Denmark! The combination of demand driven inflation combined with monetary driven inflation has the potential to be a toxic elixir. Especially the later ingredient. |
