Updated: 07-Mar-24 09:38 ET
| Q4 Productivity-Prel |
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| Updated: 07-Mar-24 09:38 ET |
Highlights
- Q4 Productivity growth was left unchanged at 3.2% (Briefing.com consensus 3.1%) while unit labor costs were revised down to 0.4% (Briefing.com consensus 0.6%) from 0.5%.
Key Factors
- The productivity gain stemmed from output increasing 3.5% and hours worked increasing 0.3%.
- The 0.4% increase in unit labor costs resulted from a 3.6% increase in hourly compensation and a 3.2% increase in productivity.
- Manufacturing sector labor productivity increased 1.3%, as output decreased 2.0% and hours worked decreased 3.3%. The 3.3% decrease in hours worked is the largest decline since the historic decline in the second quarter of 2020.
- Unit labor costs in the total manufacturing sector increased 5.3%, driven by a 6.7% increase in hourly compensation and a 1.3% increase in productivity.
- From the same quarter a year ago, nonfarm business sector labor productivity increased 2.6%.
Big Picture
- The key takeaway from the report was the same as the one for the advance estimate: unit labor costs were tame in the fourth quarter thanks to the solid increase in productivity.
| Category | Q4 | Q3 | Q2 | Q1 | Q4 |
| Nonfarm Business Sector | |||||
| Productivity Q/Q | 3.2% | 4.9% | 3.6% | -0.8% | 1.6% |
| Unit Labor Costs Q/Q | 0.4% | -1.1% | 2.6% | 7.4% | -2.0% |
| Productivity Y/Y | 2.6% | 2.4% | 1.2% | -0.5% | -2.0% |
| Unit Labor Costs Y/Y | 2.5% | 1.6% | 3.5% | 4.2% | 4.5% |