2024 Second Quarter (Preliminary) Productivity and Costs — 2024-08-01

Nonfarm business sector labor productivity increased 2.3 percent in the second quarter of 2024, the U.S. Bureau of Labor Statistics reported today, as output increased 3.3 percent and hours worked increased 1.0 percent. (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 2.7 percent. (See table A1.) Unit labor costs in the nonfarm business sector increased 0.9 percent in the second quarter of 2024, reflecting a 3.3-percent increase in hourly compensation and a 2.3-percent increase in productivity. Unit labor costs increased 0.5 percent over the last four quarters, the lowest rate since the third quarter of 2019, when the measure also increased 0.5 percent. (See tables A1 and 2.) BLS calculates unit labor costs as the ratio of hourly compensation to labor productivity. Increases in hourly compensation tend to increase unit labor costs and increases in productivity tend to reduce them.