US labour costs grew less than initially estimated in the third quarter (3Q) after a downwardly revised decline in the prior three months, adding to evidence the job market is no longer a source of inflationary pressure.

Unit labour costs, or what a business pays employees to produce one unit of output, increased at a 0.8% annualised rate from July through September, following an revised 1.1% decrease in the prior period, data from the Bureau of Labor Statistics showed on Tuesday. 

The initial labour costs reading had shown 1.9% gain in 3Q. The adjustments to both periods reflected downward revisions to hourly compensation.

Productivity, or nonfarm business employee output per hour, rose at an unrevised 2.2% annualised rate in the July-to-September period after rising at a 2.1% pace in the prior quarter.

  - Bloomberg