2020 Second Quarter (Preliminary) Productivity and Costs — 2020-08-14

Nonfarm business sector labor productivity increased 7.3 percent in the second quarter of 2020, the U.S. Bureau of Labor Statistics reported today, as output decreased 38.9 percent and hours worked decreased 43.0 percent. (All quarterly percent changes in this release are seasonally adjusted annual rates, and show what the percent change would be if the quarterly rate continued for four quarters.) In the four quarters from the second quarter of 2019 to the second quarter of 2020, productivity increased 2.2 percent, reflecting an 11.8-percent decrease in output and a 13.7-percent decrease in hours worked. (See table A1.) Unit labor costs in the nonfarm business sector increased at an annual rate of 12.2 percent in the second quarter of 2020, following an increase of 9.8 percent in the first quarter. Unit labor costs increased 5.7 percent over the last four quarters.