Labor Productivity Rose 3.5% in Q2

Washington, DC, September 7, 2023-Nonfarm business sector labor productivity increased 3.5% in Q2 2023, the U.S. Bureau of Labor Statistics reported, reflecting a 0.2-percentage point downward revision from the preliminary estimate. 

Output increased 1.9% and hours worked decreased 1.5% in Q2 2023. The decline in hours worked is the first decline since Q2 2020 and was the result of a 1.5% decline in average weekly hours; employment was unchanged. From the same quarter a year ago, nonfarm business sector labor productivity was unrevised, increasing 1.3%. This is the first increase in the four-quarter productivity measure since Q4 2021.