Unit labor cost index describes money means that are spent by the state in the process of manufacturing of output unit. Unit labor cost has an increasing significance, because allows to assess productivity situation in the state. It also vividly shows inflation caused by increase in cost of labor.
In practice, Unit labor cost is considered along with Productivity index. Growth of this value accompanied by productivity growth is a signal for potential need of raising interest rates in the state.
The index is announced every three months, within the first dates, at 08:30 EST a.m (New York), together with productivity index. Publication strongly influences financial market. Growth of value leads to consolidation of national currency.
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