Material Is Embargoed — 2002-02-06

The Bureau of Labor Statistics of the U.S. Department of Labor today reported preliminary productivity data--as measured by output per hour of all persons--for the fourth quarter and for the full year 2001. The seasonally adjusted annual rates of productivity change in the fourth quarter and the annual average changes were: In the fourth quarter, productivity advanced 3.4 percent in the business sector as output declined 0.3 percent and hours worked fell 3.6 percent (seasonally adjusted annual rates). In the nonfarm business sector, productivity rose 3.5 percent as output decreased 0.4 percent and hours dropped 3.7 percent. On an annual average basis, productivity in both the business and nonfarm business sectors rose 1.8 percent in 2001. This was the smallest annual productivity gain since 1995, when output per hour increased 0.7 percent in business and 0.9 percent in nonfarm business. Fourth-quarter productivity and related measures are summarized in table A and annual average data in table B.