Research >> Economics
2Q2014 Productivity Growth Increased 2.3%
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Nonfarm business sector labor productivity increased at a 2.3 percent annual rate during the second quarter of 2014, the U.S. Bureau of Labor Statistics reported today, as hours increased 2.6 percent and output increased 5.0 percent. (All quarterly percent changes in this release are seasonally adjusted annual rates.) From the second quarter of 2013 to the second quarter of 2014, productivity increased 1.1 percent as output and hours worked rose 3.2 percent and 2.0 percent, respectively.
Labor productivity, or output per hour, is calculated by dividing an index of real output by an index of hours worked of all persons, including employees, proprietors, and unpaid family workers. The measures released today were based on more recent source data than were available for the preliminary report.
Unit labor costs in nonfarm businesses edged down 0.1 percent in the second quarter of 2014, and increased 1.7 percent over the last four quarters.
Manufacturing sector productivity increased 3.3 percent in the second quarter of 2014, as output increased 6.9 percent and hours worked increased 3.5 percent. The increase in output was the largest since the second quarter of 2010 (11.6 percent). Productivity increased 3.4 percent in the durable goods sector and increased 4.7 percent in the nondurable goods sector. Over the last 4 quarters, manufacturing productivity increased 2.1 percent, as output increased 3.7 percent and hours increased 1.6 percent. Unit labor costs in manufacturing decreased 1.6 percent in the second quarter of 2014 and increased 0.8 percent from the same quarter a year ago.
Preliminary second-quarter 2014 measures of productivity and costs were announced for the nonfinancial corporate sector. Productivity increased 3.1 percent in the second quarter of 2014 as output and hours rose 7.8 percent and 4.5 percent, respectively. Unit labor costs fell 1.2 percent, as the 1.8 percent gain in hourly compensation was less than the 3.1 percent gain in productivity.
Posted: September 4, 2014 Thursday 08:30 AM