The .gov means it's official. Federal government websites often end in .gov or .mil. Before sharing sensitive information,
make sure you're on a federal government site.
The site is secure. The
https:// ensures that you are connecting to the official website and that any
information you provide is encrypted and transmitted securely.
Nonfarm business labor productivity up 3.7 percent, second quarter 2023
August 08, 2023
Labor productivity in the nonfarm business sector increased 3.7 percent in the second quarter of 2023, following a decline of 1.2 percent in the prior quarter.
Nonfarm business sector labor productivity, percent change from previous quarter at annual rate, first quarter 2021–second quarter 2023
Quarter
Labor productivity
Output
Hours worked
Hourly compensation
Unit labor costs
Q1 2021
3.4
8.5
4.9
-0.9
-4.2
Q2 2021
2.3
8.9
6.4
6.9
4.4
Q3 2021
-3.0
2.7
5.9
5.9
9.1
Q4 2021
3.0
9.1
5.9
6.8
3.7
Q1 2022
-6.0
-2.5
3.8
2.0
8.5
Q2 2022
-3.7
-1.2
2.6
2.6
6.6
Q3 2022
1.2
3.6
2.4
8.2
6.9
Q4 2022
1.6
2.9
1.3
-0.7
-2.2
Q1 2023
-1.2
1.4
2.6
2.1
3.3
Q2 2023
3.7
2.4
-1.3
5.5
1.6
The rise in labor productivity was due to a 2.4-percent increase in output and a 1.3-percent decline in hours worked. The decrease in hours worked is the first decline since the second quarter of 2020. Prior to declines in 2019 and 2020, hours worked had not decreased since 2009.
Unit labor costs in the nonfarm business sector increased 1.6 percent in the second quarter of 2023. This reflects a 5.5-percent increase in hourly compensation and a 3.7-percent increase in productivity.
These quarterly percent changes are from the Productivity program and are seasonally adjusted annual rates, subject to revision. See "Productivity and Costs — Second Quarter 2023, Preliminary" to learn more. Also see charts on productivity and costs. 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.
United States Department of Labor
