Research >> Economics
4Q2012 Productivity Growth Decreased 2.0%
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Nonfarm business sector labor productivity decreased at a 2.0 percent annual rate during the fourth quarter of 2012, the U.S. Bureau of Labor Statistics reported today. The decrease in productivity reflects increases of 0.1 percent in output and 2.2 percent in hours worked. (All quarterly percent changes in this release are seasonally adjusted annual rates.) From the fourth quarter of 2011 to the fourth quarter of 2012, productivity increased 0.6 percent as output and hours worked rose 2.4 percent and 1.8 percent, respectively. Annual average productivity increased 1.0 percent from 2011 to 2012.
Unit labor costs in nonfarm businesses increased 4.5 percent in the fourth quarter of 2012, the combined effect of the 2.0 percent decrease in productivity and a 2.4 percent increase in hourly compensation. Unit labor costs rose 1.9 percent over the last four quarters.
Manufacturing sector productivity increased 0.5 percent in the fourth quarter of 2012, as output increased 0.7 percent and hours increased 0.1 percent. Productivity increased 1.6 percent in the durable goods sector and decreased 0.5 percent in the nondurable goods sector. Over the last four quarters, manufacturing productivity increased 1.3 percent, as output increased 2.8 percent and hours worked rose 1.5 percent. Unit labor costs in manufacturing increased 0.4 percent in the fourth quarter of 2012 and increased 3.4 percent from the same quarter a year ago.
Nonfarm business sector productivity grew 1.0 percent in 2012, as output and hours increased 2.9 percent and 1.9 percent, respectively. In the manufacturing sector, productivity grew 2.0 percent, reflecting a 4.4 percent increase in output combined with a 2.4 percent increase in hours. Unit labor costs increased 0.7 percent in the nonfarm business sector and 0.4 percent in the manufacturing sector in 2012.
In the third quarter of 2012, nonfarm business productivity was revised to a 3.2 percent increase, as an upward revision to output was greater than an upward revision to hours. Unit labor costs for the nonfarm business sector fell 2.3 percent in the third quarter, more than previously reported.
Posted: February 7, 2013 Thursday 08:30 AM