US labor costs rise 0.8% in third quarter, smallest increase in over three years

U.S. labor costs grew by 0.8% in the third quarter, the smallest increase in over three years. This follows a 0.9% rise in the previous quarter. Annual labor cost growth also slowed to 3.9%, the lowest since 2021. Wages and salaries, which make up most labor costs, rose 0.8% last quarter. This is down from 0.9% in the second quarter. Annual wage growth decreased to 3.9%, compared to 4.2% earlier this year. The Federal Reserve has recently cut interest rates, aiming to manage inflation. Core inflation is rising at its slowest pace in nearly a year, supporting the Fed's decision to ease monetary policy.