Productivity, output, and hours worked from 1990 to 2024

While growth in annual hours worked has slowed since 2000, many industries have sustained high rates of output growth through gains in productivity, which is the ratio of output per hour of work. Developments in technology and business practices are common in industries with high productivity growth. Less often, some industries have increased output by accelerating or maintaining growth in hours worked. Thus, patterns of output growth can be described as "productivity-driven," "hours-driven," and "balanced growth."

For example, since 1990, output growth in mining, quarrying, and oil and gas extraction; utilities; manufacturing; wholesale trade; retail trade; and information resulted mainly, or entirely, from gains in productivity rather than increases in hours worked. Only in accommodation and food services did hours worked grow faster than productivity, making it an example of hour-driven growth. However, between 1990 and 2024, there is considerable variation among industries, both over time and within smaller component industries.

These data are from the BLS Productivity program. To learn more, see "Industry growth patterns: a closer look at output, productivity, and hours worked from 1990 to 2024" in the Monthly Labor Review. Also see these videos and 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.