US Productivity Surges, Labor Share Sinks to Record Low

US nonfarm business productivity jumped 3.6% at an annualized rate in the third quarter, the Labor Department reported Thursday, as unit labor costs fell 0.7% because hourly pay gains trailed output growth. Labor's share of nonfarm income slid to 53.0%, the lowest level since the series began in 1947. The disinflationary mix gives the Fed more room to ease, with $TLT bonds sensitive to the shift in labor costs.