2012 Fourth Quarter (Revised) Productivity and Costs — 2013-03-07

Nonfarm business sector labor productivity decreased at a 1.9 percent annual rate during the fourth quarter of 2012, the U.S. Bureau of Labor Statistics reported today. The decrease in productivity reflects increases of 0.5 percent in output and 2.5 percent in hours worked. (All quarterly percent changes in this release are seasonally adjusted annual rates.) From the fourth quarter of 2011 to the fourth quarter of 2012, productivity increased 0.5 percent as output and hours worked increased 2.5 percent and 1.9 percent, respectively. (See table A.) Annual average productivity increased 0.7 percent from 2011 to 2012. (See table C.) Labor productivity, or output per hour, is calculated by dividing an index of real output by an index of hours worked of all persons, including employees, proprietors, and unpaid family workers. The measures released today were based on more recent source data than were available for the preliminary report.