2010 Fourth Quarter (Revised) Productivity and Costs — 2011-03-03

Nonfarm business sector labor productivity increased at a 2.6 percent annual rate during the fourth quarter of 2010, the U.S. Bureau of Labor Statistics reported today. The gain in productivity reflects a 4.0 percent increase in output and a 1.4 percent increase in hours worked. (All quarterly percent changes in this release are seasonally adjusted annual rates.) From the fourth quarter of 2009 to the fourth quarter of 2010, productivity increased 1.9 percent as output rose faster than hours (table A). Annual average productivity increased 3.9 percent from 2009 to 2010 (table C). 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. The measures released today were based on more recent source data than were available for the preliminary report.