Research >> Economics
4Q2015 Productivity Growth Decreased 2.2%
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Nonfarm business sector labor productivity decreased at a 2.2-percent annual rate during the fourth quarter of 2015, the U.S. Bureau of Labor Statistics reported today, as output increased 1.0 percent and hours worked increased 3.2 percent. (All quarterly percent changes in this release are seasonally adjusted annual rates.) From the fourth quarter of 2014 to the fourth quarter of 2015, productivity increased 0.5 percent. Annual average productivity increased 0.7 percent from 2014 to 2015.
Unit labor costs in the nonfarm business sector increased 3.3 percent in the fourth quarter of 2015, reflecting a 1.1-percent increase in hourly compensation and a 2.2-percent decrease in productivity. Unit labor costs increased 2.1 percent over the last four quarters.
Manufacturing sector labor productivity decreased 0.7 percent in the fourth quarter of 2015, as output increased 0.1 percent and hours worked rose 0.8 percent. Productivity declined 1.8 percent in the durable goods manufacturing sector and increased 0.3 percent in the nondurable goods sector. Over the last four quarters, manufacturing productivity increased 1.4 percent, as output increased 1.0 percent and hours declined 0.4 percent. Unit labor costs in manufacturing increased 3.2 percent in the fourth quarter of 2015 and rose 1.0 percent from the same quarter a year ago.
Revised and previous measures for the third and fourth quarters of 2015 are shown in table B for the business, nonfarm business, and manufacturing sectors. In the fourth quarter of 2015, nonfarm business productivity decreased 2.2 percent rather than 3.0 percent as reported February 4. The revised figure reflects a 0.9 percentage point upward revision to output and a 0.1 percentage point downward revision to hours. Unit labor costs increased 3.3 percent, a smaller increase than was previously reported, as productivity was revised upward and hourly compensation was revised downward.
Manufacturing productivity declined 0.7 percent rather than 0.4 percent, reflecting a downward revision to output and a small downward revision to hours. Because the downward revision to productivity was smaller than a downward revision to hourly compensation, manufacturing unit labor costs increased 3.2 percent, rather than 3.6 percent as reported in the preliminary release.
Posted: March 3, 2016 Thursday 08:30 AM