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Labor productivity in the nonfarm business sector increased 2.3 percent in 2024, following an increase of 1.6 percent in 2023 and a decrease of 1.5 percent in 2022. The rise in labor productivity in 2024 resulted from a 2.9-percent increase in output combined with a 0.6-percent increase in hours worked.
Year | Labor productivity | Output | Hours worked | Unit labor costs | Hourly compensation | Real hourly compensation |
---|---|---|---|---|---|---|
2014 | 0.9 | 3.4 | 2.4 | 1.7 | 2.6 | 0.9 |
2015 | 1.3 | 3.7 | 2.4 | 1.8 | 3.1 | 2.9 |
2016 | 0.8 | 2.0 | 1.2 | 0.6 | 1.3 | 0.1 |
2017 | 1.3 | 3.0 | 1.6 | 2.1 | 3.4 | 1.3 |
2018 | 1.4 | 3.4 | 2.0 | 2.0 | 3.4 | 0.9 |
2019 | 2.2 | 3.1 | 0.8 | 1.6 | 3.8 | 2.0 |
2020 | 5.4 | -2.7 | -7.7 | 2.7 | 8.2 | 6.8 |
2021 | 2.0 | 7.6 | 5.4 | 3.0 | 5.1 | 0.2 |
2022 | -1.5 | 2.5 | 4.1 | 5.1 | 3.5 | -4.2 |
2023 | 1.6 | 2.9 | 1.2 | 2.2 | 3.9 | -0.2 |
2024 | 2.3 | 2.9 | 0.6 | 2.6 | 5.0 | 2.0 |
Unit labor costs in the nonfarm business sector increased 2.6 percent in 2024, reflecting a 5.0-percent increase in hourly compensation and the 2.3-percent increase in productivity. The 2.6-percent increase in unit labor costs came after costs rose 2.2 percent in 2023 and 5.1 percent in 2022.
Real hourly compensation, which takes into account changes in consumer prices, increased 2.0 percent in 2024.
These data are from the Productivity program and are subject to revision. See "Productivity and Costs — Fourth Quarter and Annual Averages 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.
Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, Productivity up 2.3 percent in 2024 at https://www.bls.gov/opub/ted/2025/productivity-up-2-3-percent-in-2024.htm (visited March 20, 2025).