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Labor productivity in the nonfarm business sector increased 0.3 percent in first quarter 2024, following increases of 3.3 percent, 4.6 percent, and 3.5 percent in the prior three quarters. The rise in labor productivity in first quarter 2024 resulted from a 1.3-percent increase in output combined with a 1.0-percent increase in hours worked.
Nonfarm business sector labor productivity, percent change from previous quarter at annual rate, first quarter 2022–first quarter 2024
Quarter
Labor productivity
Output
Hours worked
Hourly compensation
Unit labor costs
Q1 2022
-5.7
-2.8
3.1
2.0
8.3
Q2 2022
-3.7
-1.1
2.7
0.8
4.7
Q3 2022
0.0
2.8
2.8
7.1
7.1
Q4 2022
2.1
2.8
0.8
0.0
-2.0
Q1 2023
-0.3
1.8
2.1
6.8
7.1
Q2 2023
3.3
2.0
-1.3
5.9
2.5
Q3 2023
4.6
5.8
1.1
4.6
0.1
Q4 2023
3.5
3.8
0.2
3.5
0.0
Q1 2024
0.3
1.3
1.0
5.0
4.7
During the current business cycle, starting in fourth quarter 2019, labor productivity has grown at an annual rate of 1.5 percent, reflecting a 2.2-percent rate of growth in output and a 0.7-percent rate of growth in hours worked during the business cycle. The 1.5-percent annual rate of productivity growth in the current business cycle thus far is the same as the 1.5 percent rate of the previous business cycle from fourth quarter 2007 through fourth quarter 2019.
Unit labor costs in the nonfarm business sector increased 4.7 percent in first quarter 2024, reflecting a 5.0-percent increase in hourly compensation and the 0.3-percent increase in productivity.
These quarterly percent change data are from the Productivity program and are seasonally adjusted annual rates, subject to revision. See "Productivity and Costs — First Quarter 2024, 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
