Labor Productivity Jumps 3.0% in Q3

Washington, DC, November 2, 2017-Nonfarm business sector labor productivity increased 3.0% during the third quarter of 2017, the U.S. Bureau of Labor Statistics reported, as output increased 3.8% and hours worked increased 0.8%.

From the third quarter of 2016 to the third quarter of 2017, productivity increased 1.5%, reflecting a 2.9% increase in output and a 1.4% increase in hours worked.

Unit labor costs in the nonfarm business sector increased 0.5% in the third quarter of 2017, reflecting a 3.5% increase in hourly compensation and a 3.0% increase in productivity.

Unit labor costs decreased 0.1% over the last four quarters.

Manufacturing sector labor productivity fell 5.0 percent in the third quarter of 2017, as output decreased 2.1% and hours worked increased 3.1%.

The decrease in manufacturing output per hour is the largest since the first quarter of 2009, when the measure fell 16.3%.

Productivity decreased 5.7% in the durable goods manufacturing sector and 4.6% in the nondurable goods sector in the third quarter of 2017. Over the last four quarters, total manufacturing sector productivity increased 0.1%, as output increased 1.2% and hours worked increased 1.1%.

Unit labor costs in manufacturing increased 6.2% in the third quarter of 2017 and rose 0.7% from the same quarter a year ago.