Transmission of material in this release is embargoed until USDL 24-0795
8:30 a.m. (ET) Thursday, May 2, 2024
Technical information: (202) 691-5606 • Productivity@bls.gov • www.bls.gov/productivity
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PRODUCTIVITY AND COSTS
First Quarter 2024, Preliminary
Nonfarm business sector labor productivity increased 0.3 percent in the first quarter of 2024, the U.S.
Bureau of Labor Statistics reported today, as output increased 1.3 percent and hours worked increased
1.0 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. (See table
A1.)
Unit labor costs in the nonfarm business sector increased 4.7 percent in the first quarter of 2024,
reflecting a 5.0-percent increase in hourly compensation and a 0.3-percent increase in productivity. Unit
labor costs increased 1.8 percent over the last four quarters. (See tables A1 and 2.)
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Correction to March 7, 2024 Release
Hours worked and related series, including labor productivity, were incorrect in the Productivity and
Costs (R) Fourth Quarter and Annual Averages 2023 news release published March 7, 2024, as well as
in the related data tables, charts, and database. Data for all sectors have been corrected from 2019 Q1-
2023 Q4 with this release and all references to "previously published" values in this release reflect these
corrections. More information can be found at: www.bls.gov/bls/errata/corrected-hours-worked-and-
labor-productivity-for-labor-productivity-and-costs.htm.
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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 1.1 percent in the first
quarter of 2024, and increased 1.5 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 0.7-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 since the first
quarter of 1947 (2.1 percent).
Manufacturing sector labor productivity increased 0.2 percent in the first quarter of 2024, as output
was unchanged and hours worked decreased 0.2 percent. In the durable manufacturing sector,
productivity increased 1.2 percent, reflecting a 0.4-percent increase in output and a 0.8-percent decrease
in hours worked. Nondurable manufacturing sector productivity decreased 1.3 percent as output
decreased 0.4 percent and hours worked increased 0.9 percent. Total manufacturing sector productivity
increased 1.2 percent from the same quarter a year ago. (See tables A1, 3, 4, and 5.)
Unit labor costs in the total manufacturing sector increased 3.2 percent in the first quarter of 2024,
reflecting a 3.4-percent increase in hourly compensation and a 0.2-percent increase in productivity.
Manufacturing unit labor costs increased 5.0 percent from the same quarter a year ago, reflecting an
increase of 1.2 percent in labor productivity and an increase of 6.3 percent in hourly compensation. Real
hourly compensation increased 3.0 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 since the first quarter of 1987 (2.1 percent).
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 fourth-quarter and annual 2023 measures were announced today for the nonfinancial
corporate sector. Productivity increased 7.9 percent in the fourth quarter of 2023, as output increased
8.1 percent and hours worked increased 0.2 percent. From the fourth quarter of 2022 to the fourth
quarter of 2023, nonfinancial corporate sector productivity increased 3.6 percent.
Table C1 presents annual average changes for the most recent 5 years for the nonfinancial corporate
sector. Nonfinancial corporate sector productivity increased 1.4 percent in 2023, as output increased
2.9 percent and hours worked increased 1.5 percent. (See tables A2, C1, and 6.)
Revised measures
Hours and related measures--including labor productivity and hourly compensation--for all sectors
were revised to incorporate updated ratios of hours worked to hours paid by detailed industry, provided
by the BLS National Compensation Survey; indexes were subject to revision back to 2015. Measures of
real hourly compensation for all sectors were also subject to revision due to the incorporation of the
revised Consumer Price Index Retroactive Series. Third quarter, fourth quarter, and annual average data
for 2023 were revised to incorporate regular updates of source data on output and compensation
published by the Department of Commerce on April 25, 2024, and data on manufacturing output
published by the Board of Governors of the Federal Reserve System on April 16, 2024.
Table B1 presents previous and revised productivity and related measures for the business, nonfarm
business, and manufacturing sectors for the fourth quarter of 2023.
In the fourth quarter of 2023, nonfarm business sector productivity was revised up 0.2 percentage
point to an increase of 3.5 percent, reflecting a 0.3-percentage point upward revision to output; hours
worked were not revised. Nonfarm business unit labor costs were revised down 0.4 percentage point to
0.0 percent. Total manufacturing sector productivity was revised up 0.9 percentage point to an increase
of 2.4 percent in the fourth quarter of 2023, reflecting a 1.0-percentage point upward revision to output
and a 0.2-percentage point upward revision to hours worked. Unit labor costs in the manufacturing
sector were revised down 1.1 percentage point to an increase of 4.2 percent during the fourth quarter of
2023. Labor productivity was revised up 1.2 percentage point in the durable manufacturing sector to an
increase of 0.5 percent. In the nondurable manufacturing sector, labor productivity was revised up 0.7
percentage point to an increase of 4.7 percent. (See table B1.)
The annual average rate of productivity growth in the nonfarm business sector in 2023 was revised up
0.1-percentage point to an increase of 1.4 percent. For the manufacturing sector, annual average
productivity in 2023 was also revised up 0.1-percentage point, to a decline of 0.6 percent. (See tables 2
and 3.)
Quarterly and annual data for all sectors from 2022 forward appear in tables 1-6. Full historical
measures can be found on the Productivity and Costs home page: www.bls.gov/productivity/tables/.
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The revised Productivity and Costs news release for first-quarter 2024 is scheduled to be released
on Thursday, June 6, 2024, at 8:30 a.m. (ET).
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Table A1. 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
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Nonfarm business Previous quarter 0.3 1.3 1.0 5.0 1.1 4.7
A year ago 2.9 3.2 0.3 4.7 1.5 1.8
Business Previous quarter 0.3 1.2 0.9 5.0 1.2 4.7
A year ago 2.8 3.1 0.3 4.7 1.4 1.8
Manufacturing Previous quarter 0.2 0.0 -0.2 3.4 -0.4 3.2
A Year ago 1.2 -0.1 -1.3 6.3 3.0 5.0
Durable Previous quarter 1.2 0.4 -0.8 5.5 1.7 4.3
manufacturing A year ago 1.4 0.6 -0.7 7.7 4.3 6.2
Nondurable Previous quarter -1.3 -0.4 0.9 -0.7 -4.3 0.6
manufacturing A year ago 1.5 -0.9 -2.4 3.5 0.2 1.9
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Table A2. Labor productivity growth and related measures - preliminary fourth-quarter 2023
(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
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Nonfinancial Previous Quarter 7.9 8.1 0.2 3.9 1.2 -3.7
corporate A year ago 3.6 4.3 0.7 5.6 2.3 1.9
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Table B1. Labor productivity growth and related measures - revised 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
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Nonfarm business Revised 3.5 3.8 0.2 3.5 0.8 0.0
Previously published 3.3 3.5 0.2 3.7 0.9 0.4
Business Revised 3.6 3.7 0.1 3.7 1.0 0.1
Previously published 3.4 3.5 0.1 3.9 1.1 0.4
Manufacturing Revised 2.4 -1.0 -3.3 6.8 4.0 4.2
Previously published 1.5 -2.0 -3.5 6.9 4.1 5.3
Durable Revised 0.5 -2.5 -3.0 9.5 6.6 9.0
manufacturing Previously published -0.7 -4.0 -3.3 9.8 6.9 10.6
Nondurable Revised 4.7 0.6 -4.0 1.5 -1.2 -3.1
manufacturing Previously published 4.0 0.0 -3.8 1.5 -1.2 -2.5
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Table C1. Labor productivity growth and related measures - annual average changes: 2019-2023
Labor Hours Hourly Real hourly Unit labor
Sector Year productivity Output worked compensation compensation costs
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Nonfinancial 2023 1.4 2.9 1.5 4.8 0.7 3.4
corporate 2022 -1.0 3.1 4.2 4.1 -3.7 5.2
2021 3.7 9.0 5.1 4.7 -0.1 1.0
2020 3.4 -4.2 -7.3 8.0 6.6 4.5
2019 1.6 2.5 0.9 3.9 2.1 2.3
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United States Department of Labor
