Research >> Economics
1Q2017 Productivity Growth Decreased 0.6%
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Nonfarm business sector labor productivity decreased at a 0.6-percent annual rate during the first quarter of 2017, the U.S. Bureau of Labor Statistics reported today, as output increased 1.0 percent and hours worked increased 1.6 percent. (All quarterly percent changes in this release are seasonally adjusted annual rates.) From the first quarter of 2016 to the first quarter of 2017, productivity increased 1.1 percent, reflecting increases in output and hours worked of 2.4 percent and 1.3 percent, respectively.
Unit labor costs in the nonfarm business sector increased 3.0 percent in the first quarter of 2017, reflecting a 2.4-percent increase in hourly compensation and a 0.6-percent decline in productivity. Unit labor costs increased 2.8 percent over the last four quarters.
Manufacturing sector labor productivity increased 0.4 percent in the first quarter of 2017, as output increased 2.8 percent and hours worked increased 2.4 percent. Output per hour decreased 1.1 percent in the durable goods manufacturing sector and increased 3.2 percent in the nondurable goods sector. Over the last four quarters, manufacturing sector productivity increased 0.3 percent, as output increased 0.9 percent and hours worked increased 0.7 percent. Unit labor costs in manufacturing increased 2.1 percent in the first quarter of 2017 and rose 4.3 percent from the same quarter a year ago.
Preliminary fourth quarter and annual 2016 measures were announced today for the nonfinancial corporate sector. Productivity decreased 1.0 percent in the fourth quarter of 2016 and increased 1.4 percent over the last four quarters. Annual average productivity increased 0.6 percent from 2015 to 2016. The historical average annual rate of productivity growth in the nonfinancial corporate sector between 1947 and 2016 is 2.2 percent.
Revised measures
In the fourth quarter of 2016, nonfarm business sector productivity increased 1.8 percent--a larger increase than reported March 8--reflecting an upward revision to output. Unit labor costs increased 1.3 percent, a smaller increase than previously reported. Total manufacturing sector productivity increased 2.0 percent in the fourth quarter of 2016, the same as previously reported. Unit labor costs in the manufacturing sector increased 2.2 percent during the fourth quarter. Fourth-quarter 2016 labor productivity was revised up 0.3 percentage point in the durable goods sector to an increase of 1.8 percent, and was revised down 0.4 percentage point in the nondurable goods sector to an increase of 2.3 percent. (See table B1.) The annual average rate of manufacturing productivity growth for 2016 was revised down slightly from 0.3 percent to 0.2 percent, and the rate for 2015 was revised down from 0.2 percent to negative 0.6 percent. (See table 3.) The average annual rate of productivity growth in the manufacturing sector from 1987 to 2016 was unchanged at 3.2 percent.
Posted: May 4, 2017 Thursday 08:30 AM