Labour productivity declined 0.1% sequentially in Q4, with a 0.4% increase in services productivity more than offset by a 0.9% decline out of goods-producing industries…

… led by manufacturing and construction. Combined with a 0.5% lift in hourly compensation, unit labour costs jumped 0.7% - the highest growth since Q1/24…

… which isn’t great for business efficiency, increasing pressure on firms to raise prices or reduce headcount to protect margins if the trend persists.