Updated: 07-Nov-24 09:37 ET
| Q3 Productivity-Prel |
 |
|
| Updated: 07-Nov-24 09:37 ET |
Highlights
- Nonfarm business sector labor productivity increased 2.2% in the third quarter (Briefing.com consensus 2.3%) following a downwardly revised 2.1% (from 2.5%) for the second quarter.
- Unit labor costs increased 1.9% (Briefing.com consensus 0.5%) following an upwardly revised 2.4% (from 0.4%) in the second quarter.
Key Factors
- The productivity increase stemmed from output increasing 3.5% and hours worked increasing 1.2%.
- The 1.9% increase in unit labor costs resulted from a 4.2% increase in hourly compensation and a 2.2% increase in productivity.
- Manufacturing sector labor productivity increased 1.0%, as output decreased 0.2% and hours worked decreased 1.2%. Unit labor costs in the total manufacturing sector increased 5.3%, driven by a 6.4% increase in hourly compensation and a 1.0% increase in productivity.
- From the same quarter a year ago, nonfarm business sector labor productivity increased 2.0%.
Big Picture
- The key takeaway from the report is that productivity growth is helping to keep labor costs in check.
| Category | Q3 | Q2 | Q1 | Q4 | Q3 |
| Nonfarm Business Sector | |||||
| Productivity Q/Q | 2.2% | 2.1% | 0.7% | 3.1% | 3.8% |
| Unit Labor Costs Q/Q | 1.9% | 2.4% | 8.5% | 0.9% | 1.2% |
| Productivity Y/Y | 2.0% | 2.4% | 2.8% | 2.7% | 2.7% |
| Unit Labor Costs Y/Y | 3.4% | 3.2% | 3.3% | 2.1% | 1.2% |