U.S. Productivity Jumps 8.1 Percent in 3Q 2009 [Revised 12.3.09]
Posted by Gregg Killoren on November 6, 2009
Nonfarm business sector labor productivity increased at a 8.1 percent [revised down from initial report of +9.1 percent on 12.3.09] annual rate during the third quarter of 2009, the U.S. Bureau of Labor Statistics (BLS) reported on Nov. 5, 2009. This was the largest gain in productivity since the third quarter of 2003, and reflects a 2.9 percent increase in output and a 4.8 percent decline in hours worked. (All quarterly percent changes in this release are seasonally adjusted annual rates.)
Unit labor costs in nonfarm businesses fell 2.5 percent in the third quarter of 2009, as productivity grew at a faster rate (8.1 percent) than hourly compensation (5.4 percent). Unit labor costs declined 1.4 percent over the last four quarters (tables A and 2). BLS defines 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 output per hour tend to reduce them.
Manufacturing sector productivity grew 13.4 percent in the third quarter of 2009, as output rose 8.4 percent and hours worked fell 4.4 percent (tables A and 3). The third quarter gain in manufacturing productivity was the largest in the series, which begins in the second quarter of 1987. Over the last four quarters, manufacturing productivity grew 3.0 percent.
Manufacturing unit labor costs fell 6.1 percent in the third quarter of 2009, but rose 3.0 percent over the last four quarters.
For historic productivity figures, please click on the “Economic Growth Statistics” page on the menu bar above and scroll down toward the bottom of the page.
For the full BLS release, please click on the following link: Productivity and Costs.
