2024 Fourth Quarter (Revised) Productivity and Costs — 2025-03-06

Nonfarm business sector labor productivity increased 1.5 percent in the fourth quarter of 2024, the U.S. Bureau of Labor Statistics reported today, as output increased 2.4 percent and hours worked increased 0.8 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 2.0 percent in the fourth quarter of 2024. Annual average productivity was revised up 0.4 percentage point to an increase of 2.7 percent from 2023 to 2024. (See tables A1, C1, and 2.) Unit labor costs in the nonfarm business sector increased 2.2 percent in the fourth quarter of 2024, reflecting a 3.8-percent increase in hourly compensation and a 1.5-percent increase in productivity. Unit labor costs increased 2.0 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.