An important measure of productivity calculated by dividing total labor compensation (including benefits) by real output. An increase in unit labor costs will result in a reduction in profitability unless a firm can pass along higher labor costs to its customers. Economists view increases in unit labor costs as an important indicator of potential inflation.
By some strange cincidence, I just made a post that is almost, but not quite, exactly unlike yours.
ReplyDeletehttp://jazzbumpa.blogspot.com/2011/12/more-fun-with-fred.html
Cheers!
JzB
A definition from http://business.yourdictionary.com/unit-labor-cost:
ReplyDeleteunit labor cost business definition
An important measure of productivity calculated by dividing total labor compensation (including benefits) by real output. An increase in unit labor costs will result in a reduction in profitability unless a firm can pass along higher labor costs to its customers. Economists view increases in unit labor costs as an important indicator of potential inflation.
I don't see that in the graphs, at all.