2019 Fourth Quarter (Revised) Productivity and Costs — 2020-03-05

Nonfarm business sector labor productivity increased 1.2 percent in the fourth quarter of 2019, the U.S. Bureau of Labor Statistics reported today, as output increased 2.4 percent and hours worked increased 1.2 percent. (All quarterly percent changes in this release are seasonally adjusted annual rates.) From the fourth quarter of 2018 to the fourth quarter of 2019, productivity increased 1.8 percent, reflecting a 2.6-percent increase in output and a 0.8-percent increase in hours worked. (See table A1.) Labor productivity, or output per hour, is calculated by dividing an index of real output by an index of hours worked by all persons, including employees, proprietors, and unpaid family workers. Unit labor costs in the nonfarm business sector increased 0.9 percent in the fourth quarter of 2019 as hourly compensation grew at a faster rate (2.1 percent) than productivity (1.2 percent). Unit labor costs increased 1.7 percent over the last four quarters.