Thursday, June 2, 2011

PRODUCTIVITY AND COSTS First Quarter 2011, Revised



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Nonfarm business sector labor productivity increased at a 1.8 percent annual rate during the first quarter of 2011, the U.S. Bureau of Labor Statistics reported today. The gain in productivity reflects increases of 3.2 percent in output and 1.4 percent in hours worked. (All quarterly percent changes in this release are seasonally adjusted annual rates.) From the first quarter of 2010 to the first quarter of 2011, output increased 3.2 percent while hours rose 1.9 percent, yielding an increase in productivity of 1.3 percent. (See chart 1, tables A and 2.)


Unit labor costs in nonfarm businesses rose 0.7 percent in the first quarter of 2011, as a 2.5 percent increase in hourly compensation outpaced the 1.8 percent gain in productivity. Unit labor costs also rose 0.7 percent from the same quarter a year ago. (See chart 2, tables A and 2.) In the first quarter of 2011, the consumer price series increased at a 5.3 percent annual rate, resulting in a decline of 2.6 percent in real hourly compensation.

Manufacturing sector productivity grew 4.2 percent in the first quarter of 2011, as output and hours
worked increased 7.7 percent and 3.3 percent, respectively. Over the last four quarters, manufacturing productivity increased 4.1 percent. Unit labor costs in manufacturing declined 1.4 percent in the first quarter of 2011 and 0.7 percent over the last four quarters.

Read the full report with tables and notes.

Original content Bob DeMarco, Look Beyond the Obvious

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