US Labor Costs Rise 3.5% Year-on-Year in Q3, Slowest Annual Gain in Four Years

US labor costs increased 3.5% year-on-year in the third quarter and 0.8% from the prior quarter, marking the slowest annual gain in four years, US Bureau of Labor Statistics data released on December 10 show. The figures point to a cooling job market, with many employers slowing hiring or cutting staff. Separate data released a day earlier showed job openings fell, layoffs climbed to the highest level since early 2023, and the quits rate dropped to its lowest since 2020, while wage growth has moderated. The slowdown in labor costs is viewed as a positive signal for inflation as the Federal Reserve is expected to announce interest rate cuts later.