Department of Labor Logo United States Department of Labor
Dot gov

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.

Https

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 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.

These data are from the Productivity program and are subject to revision. To learn more, see "Productivity and Costs — Fourth Quarter and Annual Averages 2023, Preliminary." Also see charts related to the latest "Productivity and Costs" news release.

 

SUGGESTED CITATION

Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, Nonfarm business sector productivity increased 1.2 percent in 2023 at https://www.bls.gov/opub/ted/2024/nonfarm-business-sector-productivity-increased-1-2-percent-in-2023.htm (visited May 19, 2024).

OF INTEREST
spotlight
Recent editions of Spotlight on Statistics


triangle