2010 Third Quarter (Preliminary) Productivity and Costs — 2010-11-04

Nonfarm business sector labor productivity increased at a 1.9 percent annual rate during the third quarter of 2010, the U.S. Bureau of Labor Statistics reported today. Labor productivity, or output per hour, is calculated by dividing an index of real output by an index of hours worked by all persons, including employees, proprietors, and unpaid family workers. Output increased 3.0 percent and hours worked increased 1.1 percent in the third quarter. (All quarterly percent changes in this release are seasonally adjusted annual rates.) Productivity increased 2.5 percent over the last four quarters, as output rose 4.1 percent and hours worked rose 1.6 percent (tables A and 2). Unit labor costs in nonfarm businesses decreased 0.1 percent in the third quarter of 2010, because productivity grew 1.9 percent while hourly compensation increased 1.8 percent. From the third quarter of 2009 to the third quarter of 2010, unit labor costs declined 1.9 percent (tables A and 2).