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Nonfarm business sector productivity increased 1.2 percent in 2023
February 15, 2024
Nonfarm business sector productivity increased 1.2 percent in 2023, as output increased 2.6 percent and hours worked increased 1.3 percent. Labor productivity, or output per hour, is calculated by dividing an index of real output by an index of hours worked by all workers, including employees, proprietors, and unpaid family workers.
Nonfarm business sector labor productivity and related measures, annual average changes, 1948 to 2023
Year
Labor productivity
Real value-added output
Hours worked
Unit labor costs
Hourly compensation
Real hourly compensation
1948
2.5
4.2
1.6
6.0
8.7
0.6
1949
3.2
-0.8
-3.9
-0.3
2.9
4.2
1950
6.7
10.1
3.2
-0.7
6.0
4.7
1951
2.5
7.4
4.7
6.0
8.7
0.8
1952
1.9
3.0
1.1
3.6
5.5
3.5
1953
2.5
5.0
2.5
3.0
5.6
4.8
1954
2.0
-1.5
-3.4
1.2
3.2
2.4
1955
4.3
8.5
4.0
-0.6
3.7
4.1
1956
-0.6
1.9
2.5
6.7
6.1
4.5
1957
2.6
2.0
-0.6
3.1
5.8
2.4
1958
2.3
-2.0
-4.2
1.6
3.9
1.1
1959
3.5
8.3
4.6
0.3
3.9
3.2
1960
1.2
1.8
0.6
3.1
4.3
2.5
1961
3.3
2.2
-1.1
0.0
3.3
2.3
1962
4.5
6.8
2.2
-0.5
4.0
3.0
1963
3.4
4.6
1.1
0.0
3.4
2.1
1964
2.6
6.7
3.9
0.2
2.8
1.5
1965
3.2
7.2
3.9
0.2
3.3
1.7
1966
3.6
7.2
3.5
2.3
5.9
3.0
1967
1.9
1.9
0.0
3.9
5.8
2.6
1968
3.5
5.3
1.8
3.9
7.5
3.2
1969
0.2
3.1
2.9
6.6
6.8
1.3
1970
1.4
-0.1
-1.5
5.4
6.9
1.1
1971
3.9
3.7
-0.2
2.1
6.1
1.7
1972
3.5
6.7
3.1
2.9
6.5
3.2
1973
3.1
7.2
4.1
4.4
7.6
1.3
1974
-1.7
-1.5
0.2
11.3
9.4
-1.5
1975
2.7
-1.6
-4.2
7.6
10.4
1.2
1976
3.5
7.2
3.6
4.2
7.8
1.9
1977
1.7
5.7
3.9
6.4
8.2
1.6
1978
1.4
6.7
5.2
7.0
8.6
1.5
1979
-0.2
3.4
3.6
9.7
9.5
0.0
1980
0.0
-0.8
-0.8
10.8
10.7
-0.4
1981
1.5
2.3
0.8
8.0
9.6
0.1
1982
-0.8
-3.1
-2.3
8.2
7.3
1.2
1983
4.1
6.2
2.0
0.3
4.5
0.2
1984
2.2
8.5
6.1
2.0
4.3
0.1
1985
1.7
4.4
2.6
3.1
4.9
1.4
1986
3.0
3.8
0.8
2.7
5.8
4.0
1987
0.5
3.6
3.1
3.2
3.8
0.4
1988
1.6
4.5
2.9
3.4
5.1
1.4
1989
0.9
3.7
2.8
2.0
2.9
-1.4
1990
1.7
1.5
-0.2
4.2
6.0
1.0
1991
1.6
-0.6
-2.2
3.1
4.7
1.1
1992
4.5
4.1
-0.4
1.7
6.2
3.6
1993
0.1
3.1
3.0
1.1
1.2
-1.3
1994
0.7
4.6
3.9
0.3
1.0
-1.1
1995
1.1
3.4
2.3
1.4
2.5
0.1
1996
2.1
4.5
2.3
1.3
3.4
0.8
1997
1.9
5.2
3.2
1.9
3.9
1.7
1998
3.4
5.6
2.2
2.4
5.8
4.4
1999
3.9
5.8
1.8
0.7
4.6
2.5
2000
3.0
4.4
1.3
3.9
7.0
3.5
2001
2.6
0.7
-1.9
1.7
4.3
1.4
2002
4.3
1.7
-2.5
-1.9
2.3
0.7
2003
3.7
3.1
-0.6
0.0
3.7
1.4
2004
3.0
4.3
1.3
1.5
4.6
1.8
2005
2.2
3.9
1.7
1.4
3.6
0.2
2006
1.0
3.3
2.3
2.8
3.8
0.6
2007
1.6
2.3
0.7
2.7
4.3
1.4
2008
1.6
-0.9
-2.4
1.6
3.2
-0.6
2009
3.9
-3.8
-7.4
-2.5
1.3
1.6
2010
3.4
3.3
-0.1
-1.5
1.8
0.2
2011
-0.2
2.1
2.3
2.1
1.9
-1.2
2012
0.7
3.3
2.6
1.6
2.4
0.3
2013
0.8
2.6
1.8
0.4
1.3
-0.2
2014
0.9
3.4
2.5
1.8
2.6
0.9
2015
1.4
3.7
2.2
1.7
3.1
2.9
2016
0.7
2.0
1.3
0.6
1.3
0.0
2017
1.3
3.0
1.7
2.1
3.4
1.3
2018
1.4
3.4
2.0
2.0
3.4
0.9
2019
2.3
3.0
0.7
1.6
3.9
2.1
2020
5.2
-2.8
-7.6
2.9
8.2
6.7
2021
1.7
7.2
5.5
3.1
4.9
0.0
2022
-1.9
2.1
4.0
5.6
3.7
-4.1
2023
1.2
2.6
1.3
2.9
4.2
0.1
Unit labor costs in the nonfarm business sector increased 2.9 percent in 2023, reflecting an increase of 4.2 percent in hourly compensation and an increase of 1.2 percent in productivity. BLS calculates unit labor costs as the ratio of hourly compensation to labor productivity. Increases in hourly compensation tend to increase unit labor costs and increases in productivity tend to reduce them. Real hourly compensation, which considers changes in consumer prices, increased 0.1 percent in 2023.
United States Department of Labor
