Growth in OECD Unit Labour Costs slows to.4% in the third quarter of 26 Growth in unit labour costs (ULCs) in the OECD area slowed to.4% in the third quarter of 26 (compared with.6% in the previous quarter) as growth in compensation costs decelerated to.6% (compared with.8% in the previous quarter), while labour productivity growth remained at.2%. ULCs decelerated significantly in both the United States (to.3% in the third quarter, compared with.2% in the previous quarter) and the United Kingdom (to.7%, compared with.4% in the previous quarter), mainly driven by slowing growth in compensation costs. ULCs also fell sharply in Canada (to minus.3% compared with.6% in the previous quarter) on the back of a strong rebound in labour productivity growth (.8% compared with minus.5% in the second quarter). On the other hand, growth in ULCs increased in Japan (to.4%) mainly reflecting an acceleration in compensation costs (which picked up to.3%) but also a fall in productivity (which contracted by.%). In the Euro area, ULCs rose (to.3%, compared with.% in the previous quarter) as labour compensation growth picked up (to.4%, compared with.% in the previous quarter). ULC growth also picked up in Germany (to.7% compared to.%), while it slowed in France (to.%) and decreased in Italy (minus.%), Spain (minus.2%) and Greece (minus.6%). OECD ULC growth slows in 26Q3 Quarter on quarter percentage change (Seasonally adjusted data, Total economy) Mixed convergence process within the Euro area Cumulative percentage change over the period Unit labour costs Compensation costs Labour productivity 2Q - 27Q 27Q - 26Q3 4.8 3.6 2.4.2 -.2 - -.4 25Q4 26Q 26Q2 26Q3-2 Ireland Greece Portugal Spain France Italy Germany
23Q3 26Q3 (Seasonally adjusted data, Quarter on Quarter changes, Total economy) 23 24 25 26 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 OECD Total -...8.2.3.4 -..6.3.6..6.4 Euro area.2..3.2.2. -.3.3.3.2...3 Australia.2.5 -.. -. -. -.8..4.2 -.2 -.6.6 Austria.7.6.3.7.5.6..5.6.2..4. Belgium.3. -.3 -.6.4. -.3 -.2 -. -.2.7 -.8.9 Canada. -..7.2.7 -..2.4 -.2.7..6 -.3 Czech Republic.7 -.5.8 -.5 -.8 -..3 -.2 -.8. 2..2.9 Denmark -..6..8 -.5.4.2..9..6.9. Estonia.8 2. -2.2.6 2.2 -. 5.5 -.9.9.5.4 2.5.7 Finland...6.3..6.7 -.4. -. -.3.9.7 France.5..5.2 -..2 -.2.4.2.3..3. Germany.4.3.8.7.5..4.7.6.7...7 Greece -2.8 -.8. -.6 -.8.9 -.6 -.8 3.4 -..8.5 -.6 Hungary -.6 -.7 2.2.4.8.3 -.8.5.8. 3.7 -.6 -.2 Ireland -2.6 3. -2.8-2.6-2.7 2. -6..2 -.8-2.5 3..3 Israel -...7..5-2.5 2.6..2.6.3. Italy..3 -.3 -.3.6.3. -.2.5. -.2.5 -. Japan -.7.9 -.2 3.2.8 -.4 -.2.7.3.7 -.3..4 Korea.2 -.5.7 -.3.2.3 -.8.8 -.4.4.3 -..2 Latvia.4.4 2..2.6.2.5.7 2.9 2.4 -.3.5.2 Luxembourg.3 4.7 -.4.5-2. -2.3 2.5.8.7-3..6 -.7 Netherlands -.2 -.2.7 -..4 -. -.4.3.5.2.3 -.6 New Zealand..6.8 -.3.8.6.2 -.2..2.3 4.4 Norway.5.3.5.2.2..8.8 -.5.7 -.3 -.2.5 Poland.2-2.3 2.5. -. -.2-2.2 -.3.2 -.3.3. Portugal -. -.6. -.3.4-2.8.5 -. -.9.3.6.2.6 Slovak Republic.6.2.3.9 -.6...3 -..9 -.3 -.3 -. Slovenia -.5 -.2.3 -.8.3.3 -...8.4.5.4 -.5 Spain. -.5 -.3.6. -..3. -.4. -.. -.2 Sweden.3.5 -.5.8.6 -.8.3.7 -.7 -.5.8.4.6 Switzerland.. -.3 -.2 -.5 -.2.3.2. -.6 -.5. United Kingdom -.9.5 -.2 -.7 -.2.3... -.3 -.3.4.7 United States. -.3 2. -.5.2.9.2.9.4.2..2.3 Note : In July 26, the Irish Central Statistics Office (CSO) published revised quarterly GDP data which show significant upwards revision for the 25Q quarter. For more information see explanatory methodological documentations at the following link: http://www.cso.ie/en/surveysandmethodology/nationalaccounts/classificationdecisions/irelandseconomicgrowt hfigures25/. 2
, Labour Compensation per Employee, and GDP per Person Employed (Seasonally adjusted, Quarter on Quarter changes, Total economy) Unit Labour Costs Labour Compensation per Employee GDP per Person Employed 25 26 25 26 25 26 Q4 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 OECD Total.6..6.4.6 -..8.6. -.2.2.2 Euro area.2...3.4.3..4.2.2.. Australia.2 -.2 -.6.6 -.2.6 -.3.9 -.3.8.4 -.7 Austria.2..4..3.3.2.2..2 -.3. Belgium -.2.7 -.8.9..5 -.7.7.3 -.2. -. Canada.7..6 -.3.6.7..5 -..6 -.5.8 Czech Republic. 2..2.9..2.9.2. -.8.6.3 Denmark..6.9..3.9.7. -.7.3 -.. Estonia.5.4 2.5.7 3.9.5.3 2. 3.3 -. -..2 Finland -. -.3.9.7.3.2.7.7.4.5 -.2. France.3..3..4.5..3.2.4 -.2. Germany.7...7.7.4.3.8..4.2. Greece -..8.5 -.6 -.3..3..8 -.8 -.2.6 Hungary. 3.7 -.6 -.2.4.9 -. -..3 -.7.5. Ireland -2.5 3..3.5. -.2 3. -2.9 -.5 Israel.6.3..3.7.4.7.4.4 Italy. -.2.5 -.. -...3 -.. -.4.4 Japan.7 -.3..4.2 -.2..3 -.5.. -. Korea.4.3 -..2.5.6....3. -.2 Latvia 2.4 -.3.5.2.6 -.2.9.9 -.8..4.7 Luxembourg -3..6 -.7. -..2 3. -.7.9 Netherlands.2.3 -.6..9 -.3 -..6.3.4 New Zealand.2.3 4.4..6 3.2 -.3 -. -.6 -.2 Norway.7 -.3 -.2.5.2.9 -.3. -.5.2. -.6 Poland -.3.3..4.8.6.7.5.5. Portugal.3.6.2.6.4.5... -. -. -.5 Slovak Republic.9 -.3 -.3 -..3 -.2 -...4..2. Slovenia.4.5.4 -.5.7.5.5..3...6 Spain. -.. -.2.4.. -.3.3..2 -. Sweden -.5.8.4.6.2.8.5.4.7 -..2.8 Switzerland -.6 -.5. -.4 -.9.2.2 -.4. -.5 United Kingdom -.3 -.3.4.7 -.2..5...3..3 United States.2..2.3. -.8.5.7 -.2 -.8.3.3 3
broken down by Labour Compensation per Employee and GDP per Person Employed (Seasonally adjusted, Percentage change, Total economy) 26Q3 on 26Q2 Labour Compensation per Employee GDP per Person Employed Unit Labour Costs 3 2 - -2 Greece Slovenia Spain Slovak Republic Italy Austria France Latv ia Portugal Finland Germany Es tonia Belgium Ireland Luxembourg Netherlands Canada Hungary Denmark United States Japan Sweden United Kingdom Czech Republic Korea Norway Australia Israel New Zealand Poland Switz erland Selec ted Euro area c ountries Other OECD countries Note: The rate of change in unit labour cost is approximately equal to the difference between the growth rate of labour compensation per employee and the growth in GDP per person employed Early Estimates of Quarterly Labour Compensation per Employee (left panel); GDP per Person Employed (right panel) (2=, Seasonally adjusted, Total economy) 8 France Germany Greece Ireland Italy Portugal Spain 8 France Germany Greece Ireland Italy Portugal Spain 7 7 6 6 5 5 4 4 3 3 2 2 9 9 2Q 2Q 22Q 23Q 24Q 25Q 26Q 27Q 28Q 29Q 2Q 2Q 22Q 23Q 24Q 25Q 26Q 2Q 2Q 22Q 23Q 24Q 25Q 26Q 27Q 28Q 29Q 2Q 2Q 22Q 23Q 24Q 25Q 26Q 4
Methodological Notes Unit labour costs (ULCs) measure the average cost of labour per unit of output. They are calculated as the ratio of total labour costs to real output. Quarterly ULCs can be decomposed into the following components: labour compensation per person employed and GDP per person employed (employment-based labour productivity). The OECD estimates of total labour costs are based on estimates of employees, and, so, necessarily make adjustments for labour compensation of self-employed persons to arrive at estimates for total employment. For simplicity, the adjustment assumes that labour compensation per person is equivalent for the self-employed and employees. Data of quarterly GDP, labour compensation and employment are sourced from the OECD Quarterly National Accounts and the Main Economic Indicators databases. The ULCs published here are fully compatible with the ULC series published by the ECB, which provides ULC series for 22 EU OECD member countries and the Euro area. Estimates for the nine Non-EU member OECD countries covered in the database, are compiled following an agreed methodology that is fully consistent with that used by the ECB. For some countries target variables for constructing ULCs are not available from the sources described above and the following proxies are used: o o For compensation of employees, gross wages and salaries are used for Korea and New Zealand. For employment and employees, data are collected from: Labour force surveys: Australia, Canada, Japan, Korea, New Zealand, Switzerland, and USA. ULC figures for the latest quarter in this press release cover only countries whose data are available 75 days after the reference quarter, although data are updated on a rolling basis and disseminated via http://stats.oecd.org/index.aspx. Recent and longer term trends in productivity and competitiveness on the total economy level and by economic activity can be found in the OECD Compendium of Productivity Indicators. The most recent issue as well as a large range of additional information on the methodologies used in the OECD Productivity and ULC database are available on the OECD productivity internet page: http://www.oecd.org/std/productivitystats/ The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law. NOTICE: Starting in 27, the series of quarterly ULCs and related indicators will be regularly updated online only and available at: http://stats.oecd.org/index.aspx?datasetcode=ulc_eeq. The press releases will be discontinued. Contacts: For further information data users are invited to contact the OECD s Media Relations Division on (33) 45 24 97 or email news.contact@oecd.org. For technical questions please contact stat.contact@oecd.org. 5