Global| Dec 16 2013U.S. Worker Productivity Growth is Revised Up
by:Tom Moeller
|in:Economy in Brief
Summary
Nonfarm business sector productivity matched expectations and grew 3.0% last quarter, revised up from the initial estimate of 1.9% growth. Over the past year, however, worker productivity only ticked up 0.3%, revised from unchanged. [...]
Nonfarm business sector productivity matched expectations and grew 3.0% last quarter, revised up from the initial estimate of 1.9% growth. Over the past year, however, worker productivity only ticked up 0.3%, revised from unchanged. Output rose an upwardly revised 4.7% last quarter (2.1% y/y) and hours worked increased an unrevised 1.7% (1.8% y/y). Compensation rose a strengthened 1.6% (2.4% y/y) but when adjusted for inflation it declined 1.0% in Q3 (+0.8% y/y). Unit labor costs fell 1.4% but were up a strong 2.1% y/y.
In the factory sector, worker productivity slipped at a downwardly-revised 0.1% annual rate (+2.2% y/y). Output rose a lessened 1.1% (2.3% y/y) while hours worked gained 1.2% (0.1% y/y). Worker compensation increased at a 1.3% rate (2.0% y/y). Adjusted for price inflation, compensation fell at a 1.3% rate but it nudged up 0.4% y/y. Unit labor costs increased at an unchanged 1.3% rate (-0.2% y/y) in Q3, still recovering from the 4.3% Q1 decline.
The productivity & cost figures are available in Haver's USECON database.
| Productivity & Costs (SAAR,%) | Q3'13 | Q2'13 | Q1'13 | Q3 Y/Y | 2012 | 2011 | 2010 |
|---|---|---|---|---|---|---|---|
| Nonfarm Business Sector | |||||||
| Output per Hour (Productivity) | 3.0 | 1.8 | -1.7 | 0.3 | 1.5 | 0.5 | 3.2 |
| Compensation per Hour | 1.6 | 3.8 | -5.2 | 2.4 | 2.6 | 2.5 | 2.1 |
| Unit Labor Costs | -1.4 | 2.0 | -3.5 | 2.1 | 1.2 | 2.0 | -1.2 |
| Manufacturing Sector | |||||||
| Output per Hour | -0.1 | 2.8 | 3.8 | 2.2 | 1.8 | 1.0 | 6.3 |
| Compensation per Hour | 1.3 | 3.3 | -0.7 | 2.0 | 1.9 | 1.3 | 2.4 |
| Unit Labor Costs | 1.3 | 0.5 | -4.3 | -0.2 | 0.1 | 0.4 | -3.7 |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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