Unit-labor costs reflect how much it costs a business to produce one unit of output, such as a ton of coal. Unit labor costs are calculated as a ration of hourly compensation to labor productivity and the Bureau of Labor Statistics noted that increases in hourly compensation tend to increase unit labor costs while increases in productivity tend to reduce them.

Unit labor costs - the price of labor per single unit of output. Unit labor costs, or what a business pays employees to produce one unit of output after taking into account changes in productivity.Weak US third-quarter unit labor costs point to slowing inflation. Unit labor costs reflect the labor costs of producing each unit of output. 

Both are followed as indicators of future inflationary trends.

The employment cost index measured total compensation costs which include wages and salaries and also benefits. Benefits include vacations, but the primary mover is health insurance premiums.

The employment cost index is an easy way to evaluate wage trends and the risk of wage inflation. Wage inflation is high on the Federal Reserve's enemy list. Fed officials are always on the lookout for the prospects of inflationary pressures.

Wage pressures tend to percolate when economic activity is booming and the demand for labor is rising rapidly. During economic downturns, wage pressures tend to be subdued because labor demand is down.