Labor Productivity Shrank by 1.0% in Q1

Washington, DC, May 4, 2016—Nonfarm business sector labor productivity decreased at a 1.0% annual rate during the first quarter of 2016, the U.S. Bureau of Labor Statistics reported, as output increased 0.4% and hours worked increased 1.5%.

From the first quarter of 2015 to the first quarter of 2016, productivity increased 0.6%.

Unit labor costs in the nonfarm business sector increased 4.1% in the first quarter of 2016, reflecting a 3.0% increase in hourly compensation and a 1.0% decrease in productivity.

Unit labor costs increased 2.3% over the last four quarters.