The bottom line is that unit labor costs have declined dramatically in the US since 1973, and especially since 2001. In fact, US unit labor costs currently stand at their lowest levels since at least 1947. Why more of this labor cost savings is not finding its way into the pockets of workers is perhaps the central economic issue of our time.
According to the Bureau of Labor Statistics (BLS):
Unit labor costs can be computed by dividing employer labor costs (payments made directly to workers plus employer payments into funds for the benefit of workers) by real value added output. Unit labor costs can also be computed by dividing hourly labor costs by output per hour.Related Posts