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Nonfarm business sector labor productivity grew 1.9 percent in 2019
March 12, 2020
Nonfarm business sector labor productivity grew 1.9 percent in 2019, as output increased 2.7 percent and hours worked increased 0.8 percent. The increase in nonfarm business labor productivity is the largest annual increase since 2010, when productivity increased 3.4 percent.
Percent change in labor productivity and related measures, annual averages, 1948–2019
Year
Labor productivity (output per hour)
Output
Hours worked
Hourly compensation
Unit labor costs
Real hourly compensation
1948
2.5%
4.2%
1.6%
8.7%
6.0%
0.6%
1949
3.2
-0.8
-3.9
2.9
-0.3
4.2
1950
6.7
10.1
3.2
5.9
-0.7
4.6
1951
2.6
7.4
4.7
8.6
5.9
0.7
1952
1.9
3.0
1.1
5.5
3.5
3.5
1953
2.4
5.0
2.5
5.6
3.0
4.8
1954
2.0
-1.5
-3.4
3.2
1.2
2.4
1955
4.3
8.5
4.0
3.7
-0.6
4.0
1956
-0.6
1.9
2.5
6.1
6.7
4.5
1957
2.6
2.0
-0.6
5.8
3.2
2.4
1958
2.3
-2.0
-4.2
4.0
1.6
1.1
1959
3.5
8.3
4.6
3.9
0.3
3.1
1960
1.2
1.8
0.6
4.3
3.1
2.6
1961
3.3
2.2
-1.1
3.3
0.1
2.3
1962
4.5
6.8
2.2
4.0
-0.5
3.0
1963
3.4
4.6
1.1
3.4
0.0
2.1
1964
2.8
6.7
3.7
3.0
0.2
1.7
1965
3.2
7.2
3.9
3.3
0.1
1.7
1966
3.6
7.2
3.5
5.9
2.2
3.0
1967
1.9
1.9
0.0
5.8
3.9
2.7
1968
3.5
5.3
1.8
7.5
3.9
3.2
1969
0.2
3.1
2.9
6.8
6.6
1.3
1970
1.5
-0.1
-1.6
7.0
5.4
1.2
1971
3.9
3.7
-0.2
6.1
2.1
1.7
1972
3.5
6.7
3.1
6.5
2.9
3.2
1973
3.1
7.3
4.1
7.6
4.4
1.3
1974
-1.6
-1.5
0.1
9.5
11.3
-1.4
1975
2.8
-1.6
-4.3
10.5
7.6
1.3
1976
3.5
7.2
3.6
7.8
4.1
1.9
1977
1.7
5.7
3.9
8.2
6.4
1.6
1978
1.4
6.7
5.2
8.6
7.1
1.5
1979
-0.2
3.4
3.6
9.5
9.8
0.0
1980
0.0
-0.9
-0.8
10.8
10.8
-0.4
1981
1.5
2.3
0.8
9.6
8.0
0.2
1982
-0.8
-3.1
-2.3
7.4
8.2
1.2
1983
4.1
6.2
2.0
4.5
0.4
0.2
1984
2.2
8.5
6.1
4.3
2.0
0.1
1985
1.8
4.4
2.6
4.9
3.1
1.4
1986
3.0
3.8
0.8
5.8
2.7
4.0
1987
0.6
3.6
3.0
3.8
3.2
0.3
1988
1.6
4.6
2.9
5.1
3.4
1.5
1989
0.9
3.7
2.7
2.9
2.0
-1.4
1990
1.7
1.5
-0.2
6.0
4.2
1.0
1991
1.6
-0.6
-2.2
4.8
3.1
1.1
1992
4.5
4.1
-0.4
6.2
1.7
3.6
1993
0.1
3.1
3.0
1.2
1.1
-1.3
1994
0.7
4.6
3.9
1.0
0.3
-1.1
1995
1.1
3.4
2.3
2.5
1.4
0.1
1996
2.1
4.5
2.3
3.5
1.3
0.8
1997
1.9
5.2
3.2
3.9
1.9
1.7
1998
3.1
5.3
2.2
5.8
2.6
4.4
1999
3.8
5.7
1.8
4.7
0.8
2.5
2000
3.3
4.7
1.4
7.0
3.6
3.5
2001
2.7
0.8
-1.9
4.4
1.6
1.5
2002
4.3
1.7
-2.5
2.3
-1.9
0.7
2003
3.8
3.2
-0.6
3.7
-0.1
1.4
2004
2.9
4.2
1.3
4.6
1.6
1.8
2005
2.2
3.9
1.7
3.7
1.4
0.3
2006
1.1
3.4
2.3
3.8
2.7
0.6
2007
1.7
2.4
0.7
4.3
2.6
1.5
2008
1.1
-1.0
-2.1
2.9
1.7
-0.9
2009
3.6
-3.9
-7.2
0.9
-2.5
1.3
2010
3.4
3.3
-0.1
1.9
-1.5
0.2
2011
0.0
2.0
2.0
2.2
2.2
-0.9
2012
0.9
3.1
2.3
2.7
1.8
0.5
2013
0.5
2.2
1.7
1.3
0.8
-0.2
2014
0.9
3.2
2.3
2.8
1.9
1.1
2015
1.3
3.5
2.1
3.1
1.7
2.9
2016
0.3
1.7
1.5
1.1
0.8
-0.2
2017
1.3
2.9
1.5
3.5
2.1
1.3
2018
1.4
3.5
2.0
3.2
1.8
0.8
2019
1.9
2.7
0.8
3.6
1.7
1.8
The 0.8-percent increase in hours worked is the smallest percentage increase in the annual average since 2010 (−0.1 percent). The average annual rate of nonfarm business sector productivity growth from 2007 to 2019, corresponding to the current business cycle, is 1.4 percent. This was below the average annual rate of growth of 2.1 percent from 1947 to 2019.
Unit labor costs in the nonfarm business sector increased 1.7 percent in 2019, reflecting increases of 3.6 percent in hourly compensation and 1.9 percent in productivity. Real hourly compensation, which takes into account changes in consumer prices, increased 1.8 percent in 2019.
These data are from the Labor Productivity and Costs program. To learn more, see Productivity and Costs — Fourth Quarter and Annual Averages 2019, 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 people, including employees, proprietors, and unpaid family workers. Unit labor costs are the ratio of hourly compensation to labor productivity. Increases in hourly compensation tend to increase unit labor costs, and increases in output per hour tend to reduce them. All quarterly percent changes in this release are seasonally adjusted annual rates.
United States Department of Labor
