Research >> Economics
1Q2015 Productivity Growth Decreased 3.1%
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Nonfarm business sector labor productivity decreased at a 3.1 percent annual rate during the first quarter of 2015, the U.S. Bureau of Labor Statistics reported today, as output declined 1.6 percent and hours worked increased 1.6 percent. (All quarterly percent changes in this release are seasonally adjusted annual rates.) The decline in productivity follows a decline of 2.1 percent in the fourth quarter of 2014. From the first quarter of 2014 to the first quarter of 2015, productivity increased 0.3 percent, reflecting increases in output and hours worked of 3.2 percent and 2.8 percent, respectively.
Unit labor costs in the nonfarm business sector increased 6.7 percent in the first quarter of 2015, reflecting a 3.3 percent increase in hourly compensation and a 3.1 percent decline in productivity. Unit labor costs increased 1.8 percent over the last four quarters.
Manufacturing sector labor productivity decreased 1.0 percent in the first quarter of 2015, as output decreased 1.1 percent and hours worked edged down 0.1 percent. Productivity decreased 3.3 percent in the durable manufacturing sector and increased 1.5 percent in the nondurable goods sector. Over the last four quarters, manufacturing productivity increased 1.5 percent, as output increased 3.8 percent and hours increased 2.3 percent. Unit labor costs in manufacturing increased 3.4 percent in the first quarter of 2015 and increased 0.2 percent from the same quarter a year ago.
Preliminary first quarter 2015 measures were announced today for the nonfinancial corporate sector. Productivity decreased 1.2 percent in the first quarter of 2015 and increased 1.7 percent over the last four quarters.
Revised measures
In the first quarter of 2015, nonfarm business productivity fell 3.1 percent, a greater decline than was reported in the preliminary estimate. The revised estimate reflects a 1.4 percentage point downward revision to output and a small downward revision to hours. Unit labor costs were revised up as the result of a 1.2 percentage point downward revision to productivity and a 0.2 percentage point upward revision to hourly compensation. In the manufacturing sector, productivity in the first quarter declined 1.0 percent, slightly less than the preliminary estimate. Unit labor costs increased 3.4 percent, rather than 2.7 percent as previously reported, due to a 0.9 percentage point upward revision to hourly compensation.
In the fourth quarter of 2014, the 2.1 percent decrease in nonfarm business productivity was unrevised from the May 6 release, while manufacturing productivity was revised slightly up. For both sectors, an upward revision to hourly compensation accounted for the upward revision to unit labor costs.
Posted: June 4, 2015 Thursday 08:30 AM