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- U.S. labor productivity drops less than initially estimated in the third quarter
U.S. labor productivity drops less than initially estimated in the third quarter
The revised
data from the U.S. Labour Department showed on Tuesday that nonfarm business
sector labor productivity in the United States decreased 0.2 percent q-o-q in
the third quarter of 2019, as output advanced 2.3 percent q-o-q and hours
worked rose 2.5 percent q-o-q (seasonally adjusted). That was above initial
estimate of a decline of 0.3 percent q-o-q but below economists’ forecast for a
drop of 0.1 percent q-o-q, and marked the first decrease in productivity since
the fourth quarter of 2015. In the second quarter, labor productivity climbed
2.5 percent q-o-q.
In y-o-y terms,
the labor productivity rose 1.5 percent in the third quarter, reflecting a 2.3-percent
jump in output and a 0.9-percent advance in hours worked.
Meanwhile, unit
labor costs in the nonfarm business sector in the third quarter rose 2.5
percent q-o-q compared to an initial estimate of a 3.6 percent q-o-q advance and
a 2.4 percent q-o-q gain in the prior quarter.
Economists had
forecast a 3.3 percent q-o-q boost in third-quarter unit labor costs.
Unit labor
costs quarterly increase reflected a 2.3-percent q-o-q increase in compensation
per hour and a 0.2-percent q-o-q fall in productivity.
Compared to the
corresponding period of 2018, unit labor costs rose 2.2 percent.
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