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Economic News Release
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First Quarter 2024, Revised



Transmission of material in this release is embargoed until                                 USDL 24-1090
8:30 a.m. (ET) Thursday, June 6, 2024

Technical information: (202) 691-5606  Productivity@bls.gov  www.bls.gov/productivity
Media contact:         (202) 691-5902  PressOffice@bls.gov     

                                   Productivity and Costs
                                First Quarter 2024, Revised
                                
Nonfarm business sector labor productivity increased 0.2 percent in the first quarter of 2024, the U.S. 
Bureau of Labor Statistics reported today, as output increased 0.9 percent and hours worked increased 
0.6 percent. (All quarterly percent changes in this release are seasonally adjusted annual rates.) From the 
same quarter a year ago, nonfarm business sector labor productivity increased 2.9 percent, the largest 
four-quarter increase since the first quarter of 2021, when the measure increased 5.9 percent. (See table 
A1.)

Unit labor costs in the nonfarm business sector increased 4.0 percent in the first quarter of 2024, 
reflecting a 4.2-percent increase in hourly compensation and a 0.2-percent increase in productivity. Unit 
labor costs increased 0.9 percent over the last four quarters. (See tables A1 and 2.) 

BLS calculates unit labor costs as the ratio of hourly compensation to labor productivity. Increases in 
hourly compensation tend to increase unit labor costs and increases in productivity tend to reduce them. 
Real hourly compensation, which takes into account consumer prices, increased 0.4 percent in the first 
quarter of 2024, and increased 0.6 percent over the last four quarters.

Labor productivity, or output per hour, is calculated by dividing an index of real output by an index of 
hours worked by all workers, including employees, proprietors, and unpaid family workers. During the 
current business cycle, starting in the fourth quarter of 2019, labor productivity has grown at an annual 
rate of 1.5 percent, reflecting a 2.2-percent rate of growth in output and a 0.6-percent rate of growth in 
hours worked during the business cycle. The 1.5-percent annual rate of productivity growth in the 
current business cycle thus far is the same as the 1.5 percent rate of the previous business cycle from the 
fourth quarter of 2007 through the fourth quarter of 2019, and is below the long-term rate of 2.1 percent 
since the first quarter of 1947.

Manufacturing sector labor productivity was unchanged in the first quarter of 2024, as output and 
hours worked both decreased 0.2 percent. In the durable manufacturing sector, productivity increased 
1.0 percent, reflecting a 0.1-percent increase in output and a 0.9-percent decrease in hours worked. 
Nondurable manufacturing sector productivity decreased 1.4 percent as output decreased 0.5 percent and 
hours worked increased 0.9 percent. Total manufacturing sector productivity increased 1.1 percent from 
the same quarter a year ago. (See tables A1, 3, 4, and 5.)

Unit labor costs in the total manufacturing sector increased 3.1 percent in the first quarter of 2024, 
reflecting a 3.1-percent increase in hourly compensation and no change in productivity. Manufacturing 
unit labor costs increased 4.1 percent from the same quarter a year ago, reflecting an increase of 1.1 
percent in labor productivity and an increase of 5.3 percent in hourly compensation. Real hourly 
compensation increased 2.0 percent from the same quarter a year ago. (See tables A1 and 3.)

Manufacturing sector labor productivity has grown at an annual rate of 0.3 percent during the current 
business cycle, as output has grown 0.1 percent and hours have declined 0.2 percent. The 0.3-percent 
annual rate of productivity growth in the current business cycle thus far is above the 0.0-percent rate of 
the previous business cycle from the fourth quarter of 2007 through the fourth quarter of 2019, and is 
below the long-term rate of 2.1 percent since the first quarter of 1987.

The concepts, sources, and methods used for the manufacturing output series differ from those used in 
the business and nonfarm business output series; these output measures are not directly comparable. See 
the Technical Notes for a more detailed explanation. 

Preliminary first-quarter 2024 measures were announced today for the nonfinancial corporate sector. 
Productivity increased 1.8 percent in the first quarter of 2024 as output increased 2.5 percent and hours 
worked increased 0.7 percent. Productivity increased 3.2 percent over the last four quarters. (See table 
6.)

Revised measures

Measures released today are based on more recent source data than were available for the preliminary 
report; they reflect regular updates of source data from the BLS, the Bureau of Economic Analysis 
(BEA), and the Board of Governors of the Federal Reserve System.

Table B1 presents previous and revised productivity and related measures for the business, nonfarm 
business, and manufacturing sectors for the first quarter of 2024.

In the first quarter of 2024, nonfarm business sector productivity increased 0.2 percent, a slight 
downward revision from the previously reported increase of 0.3 percent. Output and hours worked were 
both revised down 0.4 percentage point. Unit labor costs increased 4.0 percent rather than increasing 4.7 
percent as previously reported, reflecting a 0.8-percentage point downward revision to hourly 
compensation and a 0.1-percentage point downward revision to labor productivity. In the manufacturing 
sector, productivity was revised down from a 0.2-percent increase to a 0.0-percent change, reflecting a 
0.2-percentage point downward revision to output and no revision to hours worked. Manufacturing unit 
labor costs increased 3.1 percent rather than the preliminary estimate of 3.2 percent, as a 0.3-percentage 
point downward revision to hourly compensation was mostly offset by a 0.2-percentage point downward 
revision to productivity.  

Table B2 shows previous and revised productivity and related measures for the business, nonfarm 
business, manufacturing, and nonfinancial corporate sectors for the fourth quarter of 2023. 

In the fourth quarter of 2023, labor productivity in the nonfarm business sector remained at 3.5 
percent, as both output and hours worked were unrevised. Hourly compensation, however, was revised 
down from the previously reported increase of 3.5 percent to an increase of 0.6 percent. As a result, unit 
labor costs decreased 2.8 percent in the fourth quarter of 2023, rather than no change as previously 
reported. Labor productivity in the total manufacturing sector was revised down 0.1-percentage point to 
an increase of 2.3 percent, the result of a 0.1-percentage point downward revision to output, which 
declined at a 1.1-percent rate. Hours worked were unrevised, decreasing 3.3 percent in the fourth 
quarter. Hourly compensation was revised down 3.7 percentage points to a 3.1-percent increase; this led 
to a 3.5-percentage point downward revision to unit labor costs, from an increase of 4.2 percent to an 
increase of 0.7 percent.

In the nonfinancial corporate sector, productivity grew 6.4 percent in the fourth quarter of 2023 rather 
than 7.9 percent as previously reported, due to a 1.5-percentange point downward revision to output. 
Hours worked were unrevised, increasing at a 0.2-percent rate.

Quarterly and annual data for all sectors for recent years appear in tables 1-6. Full historical annual and 
quarterly measures can be found at www.bls.gov/productivity/tables/.
______________
The preliminary Productivity and Costs news release for second-quarter 2024 is scheduled to be 
released on Thursday, August 1, 2024, at 8:30 a.m. (ET).




=========================================================================================================================
Table A1. Labor productivity growth and related measures  revised first-quarter 2024
(percent change from previous quarter at annual rate and from same quarter a year ago)


                                                Labor                   Hours    Hourly         Real hourly    Unit labor
Sector                  Percent change from:    productivity   Output   worked   compensation   compensation   costs
-------------------------------------------------------------------------------------------------------------------------
Nonfarm business        Previous quarter            0.2          0.9      0.6        4.2            0.4           4.0
                        A year ago                  2.9          3.1      0.2        3.8            0.6           0.9
                        
Business                Previous quarter            0.3          0.9      0.6        4.3            0.5           4.0
                        A year ago                  2.8          3.0      0.2        3.8            0.5           0.9
                        
Manufacturing           Previous quarter            0.0         -0.2     -0.2        3.1           -0.6           3.1
                        A Year ago                  1.1         -0.2     -1.3        5.3            2.0           4.1

 Durable                Previous quarter            1.0          0.1     -0.9        5.1            1.3           4.1
 manufacturing          A year ago                  1.2          0.5     -0.7        5.7            2.4           4.5

 Nondurable             Previous quarter           -1.4         -0.5      0.9       -0.5           -4.1           0.9
 manufacturing          A year ago                  1.5         -0.9     -2.4        4.3            1.0           2.7
=========================================================================================================================


=========================================================================================================================
Table A2. Labor productivity growth and related measures - preliminary first-quarter 2024
(percent change from previous quarter at annual rate and from same quarter a year ago)
                                                Labor                   Hours    Hourly         Real hourly    Unit labor
Sector               Percent change from:       productivity   Output   worked   compensation   compensation   costs
-------------------------------------------------------------------------------------------------------------------------
Nonfinancial         Previous quarter               1.8          2.5      0.7        4.4            0.6           2.6
corporate            A year ago                     3.2          3.5      0.3        4.3            1.1           1.1
=========================================================================================================================


=========================================================================================================================
Table B1. Labor productivity growth and related measures - revised and previously published first-quarter 2024
(percent change from previous quarter at annual rate)


                                                Labor                   Hours    Hourly         Real hourly    Unit labor
Sector                                          productivity   Output   worked   compensation   compensation   costs
-------------------------------------------------------------------------------------------------------------------------
Nonfarm business        Revised                     0.2          0.9      0.6        4.2            0.4           4.0
                   Previously published             0.3          1.3      1.0        5.0            1.1           4.7
                        
Business                Revised                     0.3          0.9      0.6        4.3            0.5           4.0
                   Previously published             0.3          1.2      0.9        5.0            1.2           4.7
                        
Manufacturing           Revised                     0.0         -0.2     -0.2        3.1           -0.6           3.1
                   Previously published             0.2          0.0     -0.2        3.4           -0.4           3.2
                                                                       
 Durable                Revised                     1.0          0.1     -0.9        5.1            1.3           4.1
 manufacturing     Previously published             1.2          0.4     -0.8        5.5            1.7           4.3
                        
 Nondurable             Revised                    -1.4         -0.5      0.9       -0.5           -4.1           0.9
 manufacturing     Previously published            -1.3         -0.4      0.9       -0.7           -4.3           0.6
=========================================================================================================================


=========================================================================================================================
Table B2. Labor productivity growth and related measures - revised and previously published fourth-quarter 2023
(percent change from previous quarter at annual rate)


                                                Labor                   Hours    Hourly         Real hourly    Unit labor
Sector                                          productivity   Output   worked   compensation   compensation   costs
-------------------------------------------------------------------------------------------------------------------------
Nonfarm business        Revised                     3.5          3.8      0.2        0.6           -2.0          -2.8
                   Previously published             3.5          3.8      0.2        3.5            0.8           0.0
                        
Business                Revised                     3.6          3.7      0.1        0.8           -1.8          -2.7
                   Previously published             3.6          3.7      0.1        3.7            1.0           0.1
                        
Nonfinancial             Revised                    6.4          6.6      0.2        1.4           -1.2          -4.7
corporate           Previously published            7.9          8.1      0.2        3.9            1.2          -3.7
                                   
Manufacturing           Revised                     2.3         -1.1     -3.3        3.1            0.4           0.7
                   Previously published             2.4         -1.0     -3.3        6.8            4.0           4.2
                                    
 Durable                Revised                     0.2         -2.8     -3.0        2.3           -0.4           2.1 
 manufacturing     Previously published             0.5         -2.5     -3.0        9.5            6.6           9.0
                                
 Nondurable             Revised                     4.8          0.7     -4.0        4.5            1.8          -0.3
 manufacturing      Previously published            4.7          0.6     -4.0        1.5           -1.2          -3.1
=========================================================================================================================
Last Modified Date: June 06, 2024