Research >> Economics
1Q2015 Productivity Growth Decreased 1.9%
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Nonfarm business sector labor productivity decreased at a 1.9 percent annual rate during the first quarter of 2015, the U.S. Bureau of Labor Statistics reported today, as output declined 0.2 percent and hours worked increased 1.7 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 0.6 percent, reflecting increases in output and hours worked of 3.5 percent and 2.9 percent, respectively.
Unit labor costs in the nonfarm business sector increased 5.0 percent in the first quarter of 2015, reflecting a 3.1 percent increase in hourly compensation and a 1.9 percent decline in productivity. Unit labor costs increased 1.1 percent over the last four quarters.
Manufacturing sector productivity decreased 1.1 percent in the first quarter of 2015, as output decreased 1.2 percent and hours worked edged down 0.1 percent. Productivity decreased 2.3 percent in the durable manufacturing sector and was unchanged in the nondurable manufacturing sector. Over the last four quarters, manufacturing productivity increased 1.4 percent, as output increased 3.8 percent and hours increased 2.3 percent. Unit labor costs in manufacturing increased 2.7 percent in the first quarter of 2015 and decreased 0.7 percent from the same quarter a year ago.
Preliminary fourth quarter and annual 2014 measures were announced today for the nonfinancial corporate sector. Productivity increased 2.5 percent in the fourth quarter of 2014 and increased 1.5 percent over the last four quarters. Annual average productivity increased 0.4 percent from 2013 to 2014.
Revised measures
In the fourth quarter of 2014, nonfarm business sector productivity decreased 2.1 percent, a slightly smaller decline than reported March 5. Unit labor costs increased 4.2 percent in the fourth quarter of 2014, a slightly larger increase than previously reported. Total manufacturing sector productivity and unit labor costs were unrevised in the fourth quarter. There were revisions to measures for the durable and nondurable manufacturing sectors.
2014 Annual Average measures for productivity and unit labor costs were unrevised in the nonfarm business sector and total manufacturing sector.
Posted: May 6, 2015 Wednesday 08:30 AM