2020 Third Quarter (Revised) Productivity and Costs — 2020-12-08

Nonfarm business sector labor productivity increased 4.6 percent in the third quarter of 2020, the U.S. Bureau of Labor Statistics reported today, as output increased 43.4 percent and hours worked increased 37.1 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.) The 4.6-percent gain in productivity in the third quarter follows an increase of 10.6 percent during the second quarter. Over the last four quarters, nonfarm business productivity increased 4.0 percent, reflecting a 3.4-percent decline in output and a 7.1-percent decline in hours worked. (See table A1.) Unit labor costs in the nonfarm business sector decreased at an annual rate of 6.6 percent in the third quarter of 2020, the combined effect of a 2.3-percent decrease in hourly compensation and the 4.6- percent increase in productivity.