US: Unit Labor Costs rise 3.2% in Q4 vs. 1.6% expected

• Unit Labor Costs in the US increased at a stronger pace than expected in Q4.
• US Dollar Index posts strong daily gains above 105.00 after the data.

"Unit labor costs in the nonfarm business sector increased 3.2% in the fourth quarter of 2022, reflecting a 4.9% increase in hourly compensation and a 1.7% increase in productivity," the US Bureau of Labor Statistics (BLS) reported on Thursday. This reading came much higher than the market expectation for an increase of 1.6%. 

"Unit labor costs increased 6.3% over the last four quarters," the BLS further noted in its publication and said that nonfarm business sector labor productivity increased 1.7% in the fourth quarter of 2022.

Market reaction

The US Dollar gathered strength after this data and the US Dollar Index was last seen rising 0.66% on the day at 105.07.