Productivity Falls 2.2% in Q4 2015; Unit Labor Costs Rise 3.3%

Washington, DC, March 3, 2016—Nonfarm business sector labor productivity decreased at a 2.2% annual rate during the fourth quarter of 2015, the U.S. Bureau of Labor Statistics has reported, as output increased 1.0% and hours worked increased 3.2%.

From the fourth quarter of 2014 to the fourth quarter of 2015, productivity increased 0.5%. Annual average productivity increased 0.7% from 2014 to 2015.

Unit labor costs in the nonfarm business sector increased 3.3% in the fourth quarter of 2015, reflecting a 1.1% increase in hourly compensation and a 2.2% decrease in productivity. Unit labor costs increased 2.1% over the last four quarters.