Growth in OECD Unit Labour Costs slows to 0.4 % in the third quarter of 2016
Growth in unit labour costs (ULCs) in the OECD area slowed to 0.4 % in the third quarter of 2016 (compared with 0.6 % in the previous quarter) as growth in compensation costs decelerated to 0.6 % (compared with 0.8 % in the previous quarter), while labour productivity growth remained at 0.2 %
ULCs decelerated significantly in both the United States (to 0.3 % in the third quarter, compared with 1.2 % in the previous quarter) and the United Kingdom (to 0.7 %, compared with 1.4 % in the previous quarter), mainly driven by slowing growth in compensation costs. ULCs also fell sharply in Canada (to minus 0.3 % compared with 0.6 % in the previous quarter) on the back of a strong rebound in labour productivity growth (0.8 % compared with minus 0.5 % in the second quarter).
On the other hand, growth in ULCs increased in Japan (to 0.4 %) mainly reflecting an acceleration in compensation costs (which picked up to 0.3 %) but also a fall in productivity (which contracted by 0.1 %).
In the Euro area, ULCs rose (to 0.3 %, compared with 0.1 % in the previous quarter) as labour compensation growth picked up (to 0.4 %, compared with 0.1 % in the previous quarter). ULC growth also picked up in Germany (to 0.7 % compared to 0.1 %), while it slowed in France (to 0.1 %) and decreased in Italy (minus 0.1 %), Spain (minus 0.2 %) and Greece (minus 0.6 %).