2009 Fourth Quarter (Revised) Productivity and Costs — 2010-03-04

Nonfarm business sector labor productivity increased at a 6.9 percent annual rate during the fourth quarter of 2009, the U.S. Bureau of Labor Statistics reported today. The gain in productivity reflects a 7.6 percent increase in output partially offset by a 0.6 percent increase in hours worked. (All quarterly percent changes in this release are seasonally adjusted annual rates.) From the fourth quarter of 2008 to the fourth quarter of 2009, productivity increased 5.8 percent as output declined 0.2 percent and hours fell 5.7 percent (table A). The annual measure of productivity increased 3.8 percent from 2008 to 2009 (table D). Labor productivity, or output per hour, is calculated by dividing an index of real output by an index of hours of all persons, including employees, proprietors, and unpaid family workers. Unit labor costs in nonfarm businesses fell 5.9 percent in the fourth quarter of 2009, the result of productivity increasing faster than hourly compensation.