Research >> Economics
2Q2016 Productivity Growth Decreased 0.5%
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Nonfarm business sector labor productivity decreased at a 0.5-percent annual rate during the second quarter of 2016, the U.S. Bureau of Labor Statistics reported today, as output increased 1.2 percent and hours worked increased 1.8 percent. (All quarterly percent changes in this release are seasonally adjusted annual rates.) From the second quarter of 2015 to the second quarter of 2016, productivity decreased 0.4 percent, the first four-quarter decline in the series since a 0.6-percent decrease in the second quarter of 2013.
Unit labor costs in the nonfarm business sector increased 2.0 percent in the second quarter of 2016, reflecting a 1.5-percent increase in hourly compensation and a 0.5-percent decline in productivity. Unit labor costs increased 2.1 percent over the last four quarters.
Manufacturing sector labor productivity decreased 0.2 percent in the second quarter of 2016, as output and hours worked decreased 0.8 percent and 0.7 percent, respectively. Output per hour increased 2.6 percent in the durable goods manufacturing sector reflecting a 2.0-percent decline in hours worked and a 0.5-percent increase in output. Productivity decreased 4.1 percent in the nondurable goods sector in the second quarter of 2016, following a 4.0 percent first-quarter increase. Over the last four quarters, manufacturing productivity increased 0.9 percent, as output increased 0.3 percent and hours declined 0.6 percent. Unit labor costs in manufacturing increased 3.1 percent in the second quarter of 2016 and rose 1.7 percent from the same quarter a year ago. Hourly compensation increased 2.9 percent in the second quarter of 2016.
Posted: August 9, 2016 Tuesday 08:30 AM