Second Quarter 2024, Revised

Transmission of material in this release is embargoed until                                 USDL 24-1816
8:30 a.m. (ET) Thursday, September 5, 2024

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

                                   Productivity and Costs
                              Second Quarter 2024, Revised
                              
Nonfarm business sector labor productivity increased 2.5 percent in the second quarter of 2024, the 
U.S. Bureau of Labor Statistics reported today, as output increased 3.5 percent and hours worked 
increased 1.0 percent. (All quarterly percent changes in this release are seasonally adjusted annualized 
rates.) From the same quarter a year ago, nonfarm business sector labor productivity increased 2.7 
percent. (See table A1.)

Unit labor costs in the nonfarm business sector increased 0.4 percent in the second quarter of 2024, 
reflecting a 3.0-percent increase in hourly compensation and a 2.5-percent increase in productivity. Unit 
labor costs increased 0.3 percent over the last four quarters, the lowest rate since the fourth quarter of 
2013, when the measure decreased 2.2 percent. (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 0.1 percent in the 
second quarter of 2024 and decreased 0.1 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 
annualized rate of 1.6 percent, reflecting a 2.2-percent rate of growth in output and a 0.7-percent rate of 
growth in hours worked. The 1.6-percent annualized rate of productivity growth in the current business 
cycle thus far is slightly above 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 increased 1.3 percent in the second quarter of 2024, as 
output increased 2.4 percent and hours worked increased 1.1 percent. In the durable manufacturing 
sector, productivity increased 0.4 percent, reflecting a 1.7-percent increase in output and a 1.3-percent 
increase in hours worked. Nondurable manufacturing sector productivity increased 2.3 percent as output 
increased 3.2 percent and hours worked increased 0.9 percent. Total manufacturing sector productivity 
increased 0.4 percent from the same quarter a year ago. (See tables A1, 3, 4, and 5.)

Unit labor costs in the total manufacturing sector increased 3.6 percent in the second quarter of 2024, 
reflecting a 4.9-percent increase in hourly compensation and a 1.3-percent increase in productivity. 
Manufacturing unit labor costs increased 4.3 percent from the same quarter a year ago, reflecting an 
increase of 4.7 percent in hourly compensation and an increase of 0.4 percent in labor productivity. Real 
hourly compensation increased 1.4 percent from the same quarter a year ago. (See tables A1 and 3.)

Manufacturing sector labor productivity has grown at an annualized rate of 0.3 percent during the 
current business cycle, as output has grown 0.2 percent and hours have declined 0.1 percent. The 0.3-
percent annualized 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 measures for the second quarter of 2024 were announced today for the nonfinancial 
corporate sector. Productivity decreased 0.3 percent in the second quarter of 2024 as output increased 
1.4 percent and hours worked increased 1.6 percent. Productivity increased 2.7 percent over the last four 
quarters. Unit profits of nonfinancial corporations increased at a 3.7-percent annual rate in the second 
quarter of 2024 and increased 2.7 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 second quarter of 2024. 

In the second quarter of 2024, nonfarm business sector productivity increased 2.5 percent--a 0.2-
percentage point upward revision from the preliminary estimate of a 2.3-percent increase--reflecting a 
0.2-percentage point upward revision to output; hours were not revised. From the same quarter a year 
ago, nonfarm business sector labor productivity was not revised, and increased 2.7 percent as previously 
reported. Unit labor costs increased 0.4 percent in the second quarter of 2024 rather than increasing 0.9 
percent as previously reported, reflecting a 0.3-percentage point downward revision to hourly 
compensation and a 0.2-percentage point upward revision to productivity. 

Manufacturing sector productivity for the second quarter of 2024 was revised down to an increase of 
1.3 percent from a previously reported increase of 1.8 percent, reflecting a 1.0-percentage point 
downward revision to output and a 0.5-percentage point downward revision to hours worked. 
Nondurable manufacturing sector productivity had a 1.2-percentage point downward revision to an 
increase of 2.3 percent; durable manufacturing sector productivity was not revised, increasing 0.4 
percent as previously reported. Total manufacturing unit labor costs increased 3.6 percent in the second 
quarter of 2024, reflecting a 0.4-percentage point upward revision.

Table B2 presents previous and revised productivity and related measures for the business, nonfarm 
business, manufacturing, and nonfinancial corporate sectors for the first quarter of 2024. 

In the first quarter of 2024, nonfarm business sector productivity and unit labor costs were not revised. 
Manufacturing sector productivity was revised up 0.4 percentage point to a decrease of 0.7 percent. As a 
result, unit labor costs were revised down 0.4 percentage point to an increase of 3.9 percent. (See table 
6.) 

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 third-quarter 2024 is scheduled to be 
released on Thursday, November 7, 2024, at 8:30 a.m. (ET).



=========================================================================================================================
Table A1. Labor productivity growth and related measures – revised second-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            2.5          3.5      1.0        3.0           0.1            0.4
                        A year ago                  2.7          3.5      0.7        3.1          -0.1            0.3

Business                Previous quarter            2.2          3.4      1.1        2.9           0.0            0.6
                        A year ago                  2.7          3.4      0.7        3.1          -0.1            0.4

Manufacturing           Previous quarter            1.3          2.4      1.1        4.9           2.0            3.6
                        A Year ago                  0.4         -0.1     -0.4        4.7           1.4            4.3

 Durable                Previous quarter            0.4          1.7      1.3        4.4           1.6            4.0
 manufacturing          A year ago                 -0.6         -0.4      0.2        4.9           1.7            5.5

 Nondurable             Previous quarter            2.3          3.2      0.9        5.9           2.9            3.5
 manufacturing          A year ago                  1.9          0.2     -1.6        4.0           0.8            2.1
=========================================================================================================================       


=========================================================================================================================
Table A2. Labor productivity growth and related measures – preliminary second-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             -0.3          1.4      1.6        2.8           0.0            3.1
corporate            A year ago                    2.7          3.6      0.8        3.3           0.1            0.6
=========================================================================================================================


=========================================================================================================================
Table B1. Labor productivity growth and related measures – revised and previously published second-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                     2.5          3.5      1.0        3.0            0.1           0.4
                   Previously published             2.3          3.3      1.0        3.3            0.4           0.9

Business                Revised                     2.2          3.4      1.1        2.9            0.0           0.6
                   Previously published             2.1          3.2      1.1        3.2            0.3           1.1

Manufacturing           Revised                     1.3          2.4      1.1        4.9            2.0           3.6
                   Previously published             1.8          3.4      1.6        5.1            2.2           3.2

 Durable                Revised                     0.4          1.7      1.3        4.4            1.6           4.0
 manufacturing     Previously published             0.4          2.3      1.9        4.3            1.4           3.9

 Nondurable             Revised                     2.3          3.2      0.9        5.9            2.9           3.5
 manufacturing     Previously published             3.5          4.6      1.1        6.6            3.7           3.0
=========================================================================================================================


=========================================================================================================================
Table B2. 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                     0.4          1.0      0.6        4.2            0.4           3.8
                   Previously published             0.4          1.0      0.6        4.2            0.4           3.8

Business                Revised                     0.5          1.1      0.5        4.3            0.5           3.7
                   Previously published             0.5          1.1      0.5        4.3            0.5           3.7

Nonfinancial            Revised                     1.9          2.5      0.6        4.4            0.6           2.5
corporate          Previously published             1.9          2.5      0.6        4.4            0.6           2.5

Manufacturing           Revised                    -0.7         -0.9     -0.2        3.2           -0.6           3.9
                   Previously published            -1.1         -1.3     -0.2        3.2           -0.6           4.3
 Durable
 manufacturing          Revised                     0.7         -0.1     -0.8        5.1            1.2           4.3
                   Previously published             0.5         -0.3     -0.8        5.1            1.2           4.5
 Nondurable
 manufacturing          Revised                    -2.7         -1.8      1.0       -0.3           -4.0           2.5
                   Previously published            -3.2         -2.3      1.0       -0.3           -4.0           3.0
=========================================================================================================================