Q2 Productivity Rose 1.5%

Washington, DC, September 7, 2017-Nonfarm business sector labor productivity increased 1.5% during the second quarter of 2017, the U.S. Bureau of Labor Statistics reported, as output increased 4.0% and hours worked increased 2.5%.

From the second quarter of 2016 to the second quarter of 2017, productivity increased 1.3%, reflecting a 2.8% increase in output and a 1.5% increase in hours worked.  

Unit labor costs in the nonfarm business sector increased 0.2% in the second quarter of 2017, reflecting a 1.8% increase in hourly compensation and a 1.5% increase in productivity. Unit labor costs decreased 0.2% over the last four quarters.  

Manufacturing sector labor productivity increased 2.9% in the second quarter of 2017, as output increased 2.1% and hours worked decreased 0.7%. The increase in manufacturing output per hour is the largest since the first quarter of 2012, when the measure increased 3.2%.

Productivity increased 3.8% in the durable goods manufacturing sector and increased 0.5% in the nondurable goods sector in the second quarter of 2017.

The larger productivity gain in durable goods industries was due primarily to a 2.7% decline in hours worked, as output increased 1.0%. In contrast, the modest increase in nondurable manufacturing productivity reflected a 2.8% increase in hours worked and a 3.4% increase in output.

Over the last four quarters, total manufacturing sector productivity increased 1.1%, as output increased 1.6% and hours worked increased 0.5%.
Unit labor costs in manufacturing decreased 0.4% in the second quarter of 2017 and

rose 0.1% from the same quarter a year ago.