Unit labour costs (ULC) in industry fell for most major OECD economies in the third quarter of 2007. In France, Germany, Japan and the US they declined more than in the second quarter. Italy is the only G7 economy where ULC grew appreciably in the third quarter of 2007 (0.8 per cent), although there too they slowed from the 1.1 per cent increase recorded in the previous quarter.
Unit labour cost growth in market services remained subdued in the third quarter of 2007, slowing in virtually all the major OECD economies compared with the second quarter of 2007. American ULC in market services grew by only 0.1 per cent in the third quarter of 2007 and have now recorded three consecutive falls since the recent peak of 1.9 per cent in the fourth quarter of 2006. This pattern is matched, but to a lesser extent, by Canada, Italy and France. Japanese ULC in market services fell 0.4 per cent in the third quarter of 2007, thus continuing a 10-year decline.
Unit labour cost growth in market services remained subdued in the third quarter of 2007, slowing in virtually all the major OECD economies compared with the second quarter of 2007. American ULC in market services grew by only 0.1 per cent in the third quarter of 2007 and have now recorded three consecutive falls since the recent peak of 1.9 per cent in the fourth quarter of 2006. This pattern is matched, but to a lesser extent, by Canada, Italy and France. Japanese ULC in market services fell 0.4 per cent in the third quarter of 2007, thus continuing a 10-year decline.