US Labor Costs rise sharply in Q4

Labor Feb 11, 2013 No Comments

US labor costLabor costs rose at a 4.5 percent rate in the fourth quarter 0f 2012, the fastest gain since the first quarter of 2012. However, for all of 2012, labor costs were up a modest 0.7 percent. That compared to a gain of 2 percent in 2011 and a decline of 1 percent in 2010.

Labor costs were rising more rapidly before the Great Recession, which triggered millions of layoffs and reduced workers’ bargaining power.

The main reason for the increase in Labor Costs was a fall in productivity. U.S. worker productivity shrank in the final three months of 2012 although the decline was caused by temporary factors.

Productivity contracted at an annual rate of 2 percent in the October-December quarter, the biggest drop since the first quarter of 2011, the Labor Department reported Thursday. Productivity had risen at a 3.2 percent rate in the July-September quarter.

via US productivity fell at 2 percent rate – Yahoo! Finance.

Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website Propurchaser.com.

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