The Unit Labour Cost index declined during the third quarter of 2017, according to the Quarterly Review published by the Central Bank of Malta on Tuesday.
Labour productivity grew by 1.7% in the third quarter, following a 1.5% increase in the previous period. Since the ULC is the ratio of compensation per employee to labour productivity, this had a downward impact on the index.
Measured on a four-quarter moving average basis, the annual growth rate of Malta’s ULC stood at -0.5%, down from 0.3% in the previous quarter.
ULC growth has slowed down in recent quarters. This reflects slower annual growth in compensation per employee, which in the third quarter moderated to 1.2%, from 1.9% previously, the CBM said.