Labor Cost Index indicates changes in the labor costs paid by employers for the given quarter compared to the previous one. It is calculated as the ratio of a single employee labor cost to labor productivity (defined as GDP per one employed person).
The indicator allows evaluating inflation and forecasting the growth in consumer spending.
The chart of the entire available history of the "European Union Labour Cost Index" macroeconomic indicator. The dashed line shows the forecast values of the economic indicator for the specified dates.
A significant deviation of a real value from a forecast one may cause a short-term strengthening or weakening of a national currency in the Forex market. The threshold values of the indicators signaling the approach of the critical state of the national (local) economy occupy a special place.