Labor productivity up 4.6 percent, output up 43.4 percent in third quarter 2020

Nonfarm business sector labor productivity increased 4.6 percent at an annual rate in the third quarter of 2020, as output increased 43.4 percent and hours worked increased 37.1 percent. These were the largest gains for output and hours worked since 1947.

The third quarter productivity gain follows an increase of 10.6 percent during the second quarter. This reflected a decline in output of 36.8 percent and a decline in hours worked of 42.9 percent—the largest declines in both series.

These data are from the Labor Productivity and Costs program. To learn more, see "Productivity and Costs — Third Quarter 2020, Revised." Also see Charts related to the latest "Productivity and Costs" news release. Labor productivity, or output per hour, is calculated by dividing an index of real output by an index of hours worked by all persons, including employees, proprietors, and unpaid family workers. All quarterly percent changes in this release are seasonally adjusted annual rates, and show what the percent change would be if the quarterly rate continued for four quarters.