2024 Third Quarter (Revised) Productivity and Costs — 2024-12-10

Nonfarm business sector labor productivity increased 2.2 percent in the third quarter of 2024, the U.S. Bureau of Labor Statistics reported today, reflecting no revision from the preliminary estimate. Output and hours worked were also unrevised, increasing 3.5 percent and 1.2 percent respectively. (All quarterly percent changes in this release are seasonally adjusted annualized rates.) From the same quarter a year ago, nonfarm business sector labor productivity increased 2.0 percent in the third quarter of 2024, as previously reported. (See tables A1 and B1.) Unit labor costs in the nonfarm business sector were revised down 1.1 percentage points to an increase of 0.8 percent in the third quarter of 2024, reflecting an equivalent downward revision to hourly compensation to an increase of 3.1 percent. Unit labor costs increased 2.2 percent over the last four quarters. (See tables A1, B1, and 2.) BLS calculates unit labor costs as the ratio of hourly compensation to labor productivity.