Nonfarm Business Labor Productivity Growth Cools in Second Quarter

Source: Bureau of Labor Statistics

Nonfarm business sector labor productivity continued to grow in the second quarter as output and hours worked increased, albeit at a slower pace than the previous quarter.

• Nonfarm business sector labor productivity grew by 2.3% quarter-on-quarter. This is slower than the 4.3% recorded in the first quarter.
• Output increased by 7.9%, while hours worked grew by 5.5%. This marks the fourth straight quarter that both measures posted increases.
• Unit labor costs for the quarter increased 1.0% due to higher hourly compensation and increased productivity.
• Manufacturing sector labor productivity increased 6.9%. Output grew 3.8%, while hours worked fell 2.9%.
• Unit labor costs for the sector fell 1.9%, even as hourly compensation and productivity increased.
• Manufacturing output increased 16.5% over the last year and is now 0.8% below pre-pandemic levels.