U.S. Productivity Down Significantly in Fourth Quarter

Washington, DC, February 4, 2016—Nonfarm business sector labor productivity decreased at a 3.0% annual rate during the fourth quarter of 2015, the U.S. Bureau of Labor Statistics has reported, as output increased 0.1% and hours worked increased 3.3%.

From the fourth quarter of 2014 to the fourth quarter of 2015, productivity increased 0.3%. Annual average productivity increased 0.6% from 2014 to 2015.

Unit labor costs in the nonfarm business sector increased 4.5% in the fourth quarter of 2015, reflecting a 1.3% increase in hourly compensation and a 3.0% decrease in productivity.

Unit labor costs increased 2.8% over the last four quarters.

Manufacturing sector labor productivity decreased 0.4% in the fourth quarter of 2015, as output increased 0.5% and hours worked increased 0.9%. Productivity decreased 1.0% in the durable goods manufacturing sector and increased 0.3% in the nondurable goods sector.

Over the last four quarters, manufacturing productivity increased 1.5%, as output increased 1.1% and hours decreased 0.4%. Unit labor costs in manufacturing increased 3.6% in the fourth quarter of 2015 and increased 1.9% from the same quarter a year ago.