2017 Fourth Quarter (Revised) Productivity and Costs — 2018-03-07

Nonfarm business sector labor productivity growth was revised to 0.0 percent in the fourth quarter of 2017, the U.S. Bureau of Labor Statistics reported today, as output increased 3.2 percent and hours worked increased 3.3 percent. (All quarterly percent changes in this release are seasonally adjusted annual rates.) From the fourth quarter of 2016 to the fourth quarter of 2017, productivity increased 1.1 percent, reflecting a 3.2-percent increase in output and a 2.1-percent increase in hours worked. (See tables A1 and 2.) Annual average productivity increased 1.2 percent from 2016 to 2017. (See table C1.) Labor productivity, or output per hour, is calculated by dividing an index of real output by an index of hours worked by all persons, including employees, proprietors, and unpaid family workers. Unit labor costs in the nonfarm business sector increased 2.5 percent in the fourth quarter of 2017, and increased 1.7 percent over the last four quarters.