Research >> Economics
1Q2014 Productivity Growth Decreased 3.2%
Nonfarm business sector labor productivity decreased at a 3.2 percent annual rate during the first quarter of 2014, the U.S. Bureau of Labor Statistics reported today, as hours increased 2.2 percent and output decreased 1.1 percent. (All quarterly percent changes in this release are seasonally adjusted annual rates.) The decrease in productivity was the largest since the first quarter of 2008 (-3.9 percent). From the first quarter of 2013 to the first quarter of 2014, productivity increased 1.0 percent as output and hours worked rose 2.8 percent and 1.7 percent, respectively.
Unit labor costs in nonfarm businesses increased 5.7 percent in the first quarter of 2014, due to both the decline in productivity and a 2.3 percent increase in hourly compensation. Unit labor costs increased 1.2 percent over the last four quarters.
Manufacturing sector productivity increased 3.8 percent in the first quarter of 2014, as output increased 2.2 percent and hours worked decreased 1.6 percent. Productivity increased 4.1 percent in the durable goods sector and increased 3.3 percent in the nondurable goods sector. Over the last four quarters, manufacturing productivity increased 2.3 percent, as output increased 2.5 percent and hours increased 0.2 percent. Unit labor costs in manufacturing decreased 0.4 percent in the first quarter of 2014 and declined 0.5 percent from the same quarter a year ago.
Preliminary first-quarter 2014 measures were announced today for the nonfinancial corporate sector. Productivity decreased 3.9 percent in the first quarter of 2014 and increased 0.1 percent over the last four quarters.
Posted: June 4, 2014 Wednesday 08:30 AM