Research >> Economics
3Q2014 Productivity Growth Increased 2.0%
Nonfarm business sector labor productivity increased at a 2.0 percent annual rate during the third quarter of 2014, the U.S. Bureau of Labor Statistics reported today, as output increased 4.4 percent and hours worked increased 2.3 percent. (All quarterly percent changes in this release are seasonally adjusted annual rates.) From the third quarter of 2013 to the third quarter of 2014, productivity rose 0.9 percent as output and hours worked increased 3.0 percent and 2.1 percent, respectively.
Unit labor costs in the nonfarm business sector rose 0.3 percent in the third quarter of 2014, as a 2.3 percent increase in hourly compensation was larger than the 2.0 percent increase in productivity. Unit labor costs increased 2.4 percent over the last four quarters.
Manufacturing sector productivity increased 3.2 percent in the third quarter of 2014, as output increased 4.1 percent and hours worked increased 0.8 percent. In the durable goods manufacturing sector, productivity grew 4.2 percent, reflecting a 6.6 percent increase in output and a 2.3 percent increase in hours. In nondurable goods industries, productivity grew 3.0 percent, as output increased 1.2 percent and hours worked fell 1.8 percent. Over the last four quarters, manufacturing productivity increased 2.8 percent, as output increased 4.4 percent and hours increased 1.5 percent. Unit labor costs in manufacturing decreased 0.7 percent in the third quarter of 2014 and increased 0.6 percent from the same quarter a year ago.
In the second quarter of 2014, nonfarm business sector productivity increased 2.9 percent, rather than 2.3 percent as reported September 4. The revised figure reflects an upward revision to output and a small downward revision to hours worked. Unit labor costs decreased 0.5 percent during the second quarter--rather than decreasing 0.1 percent as previously reported--due to the upward revision to productivity. In the manufacturing sector, productivity growth was revised up to 3.5 percent due to both an upward revision to output and a small downward revision to hours. Unit labor costs decreased 1.8 percent, a larger decrease than previously reported.
Second-quarter 2014 measures of productivity and costs were revised for the nonfinancial corporate sector. Productivity increased 4.0 percent rather than the preliminary estimate of 3.1 percent.
Posted: November 6, 2014 Thursday 08:30 AM