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Nonfarm business productivity down 1.3 percent from third quarter 2021 to third quarter 2022

December 12, 2022

From the third quarter of 2021 to the third quarter of 2022, nonfarm business labor productivity decreased 1.3 percent, reflecting a 2.1-percent increase in output and a 3.4-percent increase in hours worked. This follows over-the-year decreases in labor productivity of 0.4 percent in the first quarter of 2022 and 2.1 percent in the second quarter of 2022.

Percent change in productivity measures from same quarter in previous year, third quarter 2012 to third quarter 2022
Quarter Nonfarm business Manufacturing
Labor productivity Output Hours worked Labor productivity Output Hours worked

Q3 2012

1.2% 3.7% 2.4% -2.2% 0.6% 2.9%

Q4 2012

0.3 2.4 2.1 -0.8 0.7 1.5

Q1 2013

0.4 2.1 1.7 0.2 1.3 1.1

Q2 2013

-0.4 1.5 2.0 1.4 1.8 0.4

Q3 2013

0.3 2.3 2.0 1.5 2.3 0.8

Q4 2013

1.4 3.1 1.6 1.3 2.3 1.0

Q1 2014

-0.1 1.6 1.7 0.0 0.7 0.7

Q2 2014

1.1 3.2 2.1 -0.4 1.4 1.8

Q3 2014

1.4 3.8 2.3 -0.2 1.5 1.7

Q4 2014

0.1 3.3 3.2 -1.6 0.9 2.6

Q1 2015

1.8 4.9 3.0 -2.0 0.1 2.1

Q2 2015

1.3 3.9 2.6 -2.2 -1.3 0.9

Q3 2015

0.8 2.6 1.8 -2.0 -1.5 0.6

Q4 2015

0.8 2.1 1.3 -1.5 -1.9 -0.4

Q1 2016

0.4 1.8 1.4 0.0 -0.4 -0.4

Q2 2016

0.0 1.4 1.4 -0.5 -0.2 0.3

Q3 2016

0.2 1.8 1.6 -0.4 -0.4 0.0

Q4 2016

1.3 2.4 1.0 0.3 0.0 -0.3

Q1 2017

1.1 2.1 1.0 -1.0 -0.7 0.3

Q2 2017

1.0 2.4 1.4 -0.1 0.0 0.1

Q3 2017

1.6 2.8 1.3 -1.9 -0.6 1.3

Q4 2017

1.4 3.4 2.0 -1.4 0.7 2.1

Q1 2018

1.7 3.8 2.1 -0.2 1.5 1.8

Q2 2018

2.1 3.9 1.8 0.2 1.9 1.8

Q3 2018

1.4 3.7 2.3 1.1 3.0 1.9

Q4 2018

0.9 2.6 1.7 -0.2 1.3 1.5

Q1 2019

1.4 2.6 1.2 -1.4 -0.5 0.9

Q2 2019

1.7 2.6 0.9 -3.2 -2.3 0.9

Q3 2019

1.9 2.7 0.9 -2.9 -3.1 -0.2

Q4 2019

2.6 3.0 0.4 -2.2 -3.1 -1.0

Q1 2020

1.4 0.5 -1.0 -1.3 -3.2 -1.8

Q2 2020

5.1 -10.4 -14.8 -1.7 -15.2 -13.7

Q3 2020

6.4 -2.4 -8.2 2.9 -5.4 -8.1

Q4 2020

4.7 -1.5 -5.9 2.8 -2.8 -5.4

Q1 2021

5.8 2.2 -3.4 2.8 -0.8 -3.5

Q2 2021

2.2 16.3 13.8 5.5 15.8 9.7

Q3 2021

-0.2 6.3 6.5 1.2 5.1 3.9

Q4 2021

1.9 7.3 5.3 1.1 4.5 3.3

Q1 2022

-0.4 4.5 4.8 0.1 4.8 4.7

Q2 2022

-2.1 1.9 4.1 -0.5 4.2 4.7

Q3 2022

-1.3 2.1 3.4 -1.1 3.4 4.5

In manufacturing, labor productivity decreased 1.1 percent from the third quarter of 2021 to the third quarter of 2022, reflecting a 3.4-percent increase in output and a 4.5-percent increase in hours worked. This was the largest decline in manufacturing productivity since the second quarter of 2020, when productivity fell 1.7 percent over the year.

These data are from the Productivity program and are subject to revision. See "Productivity and Costs — Third Quarter 2022 (Revised)" to learn more. 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 for all persons, including employees, proprietors, and unpaid family workers.

SUGGESTED CITATION

Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, Nonfarm business productivity down 1.3 percent from third quarter 2021 to third quarter 2022 at https://www.bls.gov/opub/ted/2022/nonfarm-business-productivity-down-1-3-percent-from-third-quarter-2021-to-third-quarter-2022.htm (visited January 30, 2023).

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