Nonfarm business sector labor productivity fell 7.3% in the first quarter of 2022 as output dropped 2.3% and hours worked rose by 5.4%.
- The decline in labor productivity is the largest fall in quarterly productivity since 1947 when the measure fell by 11.7%.
- Nonfarm business sector labor productivity declined by 0.6%, signaling a 4.2% increase in output that surpassed a 4.8% increase in hours worked.
- Unit labor costs in the nonfarm business sector rose by 12.6% in Q1 of 2023, pointing to a 4.4% increase in hourly compensation and a 7.3% decline in productivity.
Manufacturing sector output now stands at 3.1% above its level in Q4 of 2019, the last quarter not affected by the COVID-19 pandemic.
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Source: US Bureau of Labor Statistics
