Productivity by State - 2023

For release 10:00 a.m. (ET) Thursday, May 30, 2024                                             USDL-24-1067

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				PRODUCTIVITY BY STATE - 2023
 

Labor productivity in the private nonfarm sector increased in 36 states, the U.S. Bureau of Labor 
Statistics reported today. Output increased in 47 states and the District and declined in Delaware, Iowa, 
and South Dakota. Hours worked increased in 42 states and the District. Alaska experienced the highest 
growth in labor productivity, an increase of 7.8 percent. 

Labor productivity, output, and hours worked for selected states, percent change, 2023 
   • Four states experienced productivity growth of more than 4.0 percent: Alaska (+7.8 percent), West 
     Virginia (+5.3 percent), Wyoming (+4.8 percent), and Washington (+4.2 percent). 
   • Three states had output growth exceeding 6.0 percent: Alaska (+7.0 percent), North Dakota (+6.4 
     percent), and Texas (+6.3 percent).
   • North Dakota and Hawaii saw the highest growth in hours worked (+5.0 percent and +4.9 percent, 
     respectively).
   • Delaware, Iowa, and South Dakota experienced a decline in output combined with an increase in hours 
     worked.
   • Labor productivity growth in six states was the result of increasing output and declining 
     hours worked: Alaska, California, Indiana, Maryland, Mississippi, and Missouri.

Contributions to national labor productivity, 2023 

Each state’s annual contribution to national productivity growth is calculated by multiplying the state’s 
productivity growth rate by its average share of total current dollar national output. The economic size of 
each state influences its contribution to national and regional estimates. Representing about 14 percent of 
national output, California had the largest influence on national productivity growth. The state’s 2.4-
percent increase in labor productivity in 2023 contributed to over one-quarter of the 1.2-percent increase 
at the national level.

2019-23 trends
Labor productivity increased in all but seven states from 2019 to 2023. Note that the annual percent 
changes for periods of more than 1 year are annualized average rates of change over the entire period, or a 
compound annual growth rate. 
   • Labor productivity declined from 2019 to 2023 in six states:
      o Delaware (-1.3 percent)
      o North Dakota (-1.0 percent)
      o Hawaii (-0.9 percent)
      o South Dakota (-0.7 percent)
      o Louisiana (-0.4 percent)
      o Oklahoma (-0.2 percent)
   • Seventeen states and the District of Columbia had productivity growth that outpaced the +1.4 
     percent growth of the nation. 
   • Labor productivity growth exceeded 3.0 percent in Nebraska (+3.6 percent), Washington (+3.3 
     percent), and the District of Columbia (+3.1 percent).
   • The District of Columbia saw the largest decrease in hours worked (-1.7 percent).
   • Output growth was highest in Florida (+4.6 percent). 
   • Idaho saw the highest growth in hours worked (+3.1 percent). 
   • Hours worked declined for 12 states and the District of Columbia.

Long-term trends
   • From 2007 to 2023, labor productivity rose in 48 states and the District of Columbia. 
   • Washington experienced the highest rate of labor productivity growth of 2.6 percent per year. 
   • Productivity in Louisiana fell from 2007 to 2023 (-0.2 percent).
   • Output grew in 47 states and the District of Columbia while hours worked grew in 38 states and 
     the District of Columbia. 

Contributions to national labor productivity, annual percent change, 2007-23

California, Texas, and New York, which have the largest economies, contributed the most 
to national productivity growth, nearly 40 percent of the 1.3-percent increase.
 
Additional Information

Output and compensation measures for 2022 and earlier years reflect revisions to Gross Domestic Product 
by state and industry data published by the Bureau of Economic Analysis. Hours and employment data 
through 2022 have been revised to incorporate the BLS 2023 Current Employment Statistics benchmark. 

Access the following productivity data at www.bls.gov/productivity/tables/labor-productivity-by-state-
and-region.xlsx:
   • Detailed data series: indexes of productivity and related measures; rates of change; and levels of state 
     employment, hours worked, value-added output, and labor compensation 
   • Additional years and long-term data

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