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Unit labor costs collapse, a portent of increased hiring

This is worth highlighting: unit labor costs fell last year at the fastest rate since records began to be kept in 1947. The flip side of this is that the productivity of labor increased 5.8% last year, which is also an impressive number. What this all means is that companies got lean and mean and much more efficient last year. Profit margins are up, and sales are increasing. This is very likely to translate into increased demand for labor over the course of the year. Labor got a lot cheaper last year, so the demand for labor is likely to rise. This is good news all around.

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