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Ahh... the American dream. Work less and less, and get paid more and more. That's what this morning's productivity and unit labor costs suggest. Productivity came in flat for the q/q change. Unit labor costs moved up 3.8%.

I've been showing charts where there have been rapid increases in personal income. This just adds more weight to that research. And now, we've got unit labor costs rising in the face of decreased productivity. The Fed's not gonna like that.

productivity productivity

The Fed has made mention of their concern regarding this. But, it was just that, a mention. Until there is more "concerned" chatter among the Fed members, I doubt that this will be earth shattering. But, these are my concerns for now, and I have them on my radar screen. If these two charts starts to get out of line too far, then look for interest rate increases to start making headlines again.

Source: Productivity Drop: More Money For Less Work