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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.
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.
Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, Nonfarm business labor productivity up 3.7 percent, second quarter 2023 at https://www.bls.gov/opub/ted/2023/nonfarm-business-labor-productivity-up-3-7-percent-second-quarter-2023.htm (visited November 05, 2024).