2023 Third Quarter (Revised) Productivity and Costs — 2023-12-06

Nonfarm business sector labor productivity increased 5.2 percent in the third quarter of 2023, the U.S. Bureau of Labor Statistics reported today, as output increased 6.1 percent and hours worked increased 0.9 percent. (All quarterly percent changes in this release are seasonally adjusted annual rates.) The increase in labor productivity is the highest rate since the third quarter of 2020, when productivity increased 5.7 percent. From the same quarter a year ago, nonfarm business sector labor productivity increased 2.4 percent. (See table A1.) Unit labor costs in the nonfarm business sector decreased 1.2 percent in the third quarter of 2023, reflecting a 3.9-percent increase in hourly compensation and a 5.2-percent increase in productivity. Unit labor costs increased 1.6 percent over the last four quarters. (See tables A1 and 2.) BLS calculates unit labor costs as the ratio of hourly compensation to labor productivity.