Economic Report: Fourth-quarter labor costs revised higher

The increase in labor costs in the fourth-quarter was raised to 0.9% from the initial estimate of 0.3%, the Labor Department said Thursday. Read More...

The cost of labor rose sharply in the fourth quarter, according to revised data released by the Labor Department Thursday.

Unit labor costs rose a revised 0.9% in the final three months of the year, up from the initial estimate of a 0.3% gain.

Rising wages can fuel inflation as companies pass along their costs to consumers.

Unit labor costs are up 3.5% over the last four quarters.

Overall fourth-quarter productivity rose 6.6%, unrevised from the initial estimate released last month, the government said.

Output increased 9.1% in the fourth quarter while hours worked rose 2.4%.

Annual average productivity increased 1.9% in 2021.

Productivity data has been volatile during the pandemic. There is a sense that workers have become more productive, but so far the data is inconclusive.