Research >> Economics
1Q2016 Productivity Growth Decreased 1.0%
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Nonfarm business sector labor productivity decreased at a 1.0-percent annual rate during the first quarter of 2016, the U.S. Bureau of Labor Statistics reported today, as output increased 0.4 percent and hours worked increased 1.5 percent. (All quarterly percent changes in this release are seasonally adjusted annual rates.) From the first quarter of 2015 to the first quarter of 2016, productivity increased 0.6 percent.
Unit labor costs in the nonfarm business sector increased 4.1 percent in the first quarter of 2016, reflecting a 3.0-percent increase in hourly compensation and a 1.0-percent decrease in productivity. Unit labor costs increased 2.3 percent over the last four quarters.
Manufacturing sector labor productivity increased 1.9 percent in the first quarter of 2016, as output increased 0.7 percent and hours worked decreased 1.1 percent. Productivity increased 0.1 percent in the durable goods manufacturing sector and increased 4.4 percent in the nondurable goods sector. Over the last four quarters, manufacturing productivity increased 1.5 percent, as output increased 0.7 percent and hours declined 0.8 percent. Unit labor costs in manufacturing decreased 1.2 percent in the first quarter of 2016 and rose 1.6 percent from the same quarter a year ago.
Preliminary fourth quarter and annual 2015 measures were announced today for the nonfinancial corporate sector. Productivity decreased 2.2 percent in the fourth quarter of 2015 and decreased 0.5 percent over the last four quarters. Annual average productivity increased 0.8 percent from 2014 to 2015. Unit profits of nonfinancial corporations fell 35.7 percent in the fourth quarter of 2015, which is the largest quarterly decline since a 41.8-percent decline in the fourth quarter of 2008. The measure has declined 15.2 percent over the last four quarters, which is the largest four-quarter decline since a 15.8 percent decline in the third quarter of 2009.
In the fourth quarter of 2015, nonfarm business sector productivity decreased 1.7 percent--a smaller decline than reported March 3--reflecting an upward revision to output. Unit labor costs increased 2.7 percent, a smaller increase than previously reported. Total manufacturing sector productivity decreased 1.0 percent in the fourth quarter of 2015, as output was revised down more than hours. Unit labor costs in the total manufacturing sector increased 3.6 percent during the quarter. There were also revisions to measures for the durable and nondurable manufacturing sectors.
There were historical revisions to manufacturing labor productivity. The annual average rate of productivity growth for 2015 was revised down from 1.3 percent to 0.2 percent and the rate for 2014 was revised down from 1.3 percent to negative 0.1 percent.
Posted: May 4, 2016 Wednesday 08:30 AM