The growth of unit labor costs in the OECD area remains stable at 0.1% in the second quarter of 2015.
Despite an acceleration in labor costs (0.5% in the second quarter of 2015, after 0.1% in the first quarter), labor productivity increases by 0.4%, after zero growth in the previous quarter.
Unit labor costs (ULC) slightly decline in the United States (by less than 0.1%), after a 0.5% increase in the first quarter, as labor productivity rebounds strongly (0.6%), after a decrease in the previous quarter (down 0.5%). Labor costs (rising by 0.5%) also rebound after zero growth in the previous quarter.
Labor productivity also rises sharply in the United Kingdom (by 0.9%, after a decline of 0.3% in the first quarter) but the significant increase in labor costs (2.3%) contributes to a 1.4% rise in ULC. ULC also increase in Japan (0.4%), as labor productivity falls (down 0.1%, after strong growth of 0.9% in the previous quarter), while labor costs rise (0.2%).
In the Eurozone, ULC are on the rise (by 0.1%, after 0.2% in the first quarter), due to a slowdown in labor costs (rising by 0.1%, after 0.5% in the previous quarter) and zero growth in labor productivity.
Within the Eurozone, the adjustment process remains mixed. ULC continue their downward trend in Ireland (down 0.6% in the second quarter, due to strong productivity growth), Greece, and Spain (down 2.3% and 0.5% respectively, resulting from wage decreases), and upward in Germany (0.5% in the second quarter).
However, in Portugal, signs of a slowdown in the adjustment process appear, after strong ULC growth for the second consecutive quarter (up 1.2%), while labor productivity also declines (by 0.8%).
ULC also decline in Italy (by 0.7%) but labor productivity remains weak, and despite a slowdown in the growth of ULC since the crisis, ULC growth since 2000 remains among the highest in the Eurozone.
