2014 Fourth Quarter (Revised) Productivity and Costs — 2015-03-05

Nonfarm business sector labor productivity decreased at a 2.2 percent annual rate during the fourth quarter of 2014, the U.S. Bureau of Labor Statistics reported today, as output increased 2.6 percent and hours worked increased 4.9 percent. (All quarterly percent changes in this release are seasonally adjusted annual rates.) From the fourth quarter of 2013 to the fourth quarter of 2014, productivity decreased 0.1 percent reflecting increases in output and hours worked of 2.9 percent and 3.0 percent, respectively. (See table A.) Annual average productivity increased 0.7 percent from 2013 to 2014. (See table C.) Labor productivity, or output per hour, is calculated by dividing an index of real output by an index of hours worked of all persons, including employees, proprietors, and unpaid family workers. Measures released today were based on more recent source data than were available for the preliminary report.