Surge in US labor costs forecast

A combination of rising wages and declining productivity will boost US labor costs sharply during the rest of 1980, especially in manufacturing, according to the Conference Board's labor outlook panel.

The panel, made up of eight labor experts from major corporations, unions, and academia, is considerably more gloomy now than when it issued its last forecast in December.

Despite a recession and growing unemmpoyment, these labor authorities expect increases in first-year wage and benefit packages in major bargaining units to average 9.5 percent this year, up from the 9 percent average in 1979. Unit labor costs in manufacturing are expected to climb 9.5 percent this year, compared with 8.2 percent in 1979.

As the recession deepens, panelists expect continuing deterioration in the US productivity rate, which fell 2.3 percent in the first quarter of this year.

About these ads
Sponsored Content by LockerDome

We want to hear, did we miss an angle we should have covered? Should we come back to this topic? Or just give us a rating for this story. We want to hear from you.

Loading...

Loading...

Loading...

Save for later

Save
Cancel

Saved ( of items)

This item has been saved to read later from any device.
Access saved items through your user name at the top of the page.

View Saved Items

OK

Failed to save

You reached the limit of 20 saved items.
Please visit following link to manage you saved items.

View Saved Items

OK

Failed to save

You have already saved this item.

View Saved Items

OK