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Productivity decreased 0.4 percent from Q2 2015 to Q2 2016
August 12, 2016
From the second quarter of 2015 to the second quarter of 2016, nonfarm business sector labor productivity decreased 0.4 percent, as output rose 1.1 percent and hours worked rose 1.5 percent. The decline in productivity represents the first over-the-year decline since a 0.6-percent decrease in the second quarter of 2013. Manufacturing productivity increased 0.9 percent from the second quarter of 2015 to the second quarter of 2016, with output rising 0.3 percent and hours worked declining 0.6 percent.
Percent change in productivity measures from same quarter in previous year, Q1 2006–Q2 2016
Quarter
Nonfarm business
Business
Labor productivity
Hours worked
Output
Real hourly compensation
Unit labor costs
Labor productivity
Hours worked
Output
Real hourly compensation
Unit labor costs
Q1 2006
1.3%
2.4%
3.8%
0.8%
3.2%
1.4%
2.3%
3.7%
0.8%
3.2%
Q2 2006
1.3
2.1
3.4
0.2
2.7
1.6
1.8
3.5
0.3
2.5
Q3 2006
0.2
2.4
2.6
-0.4
2.8
0.2
2.3
2.5
-0.4
2.7
Q4 2006
0.9
2.1
3.0
2.1
3.2
0.7
2.2
2.9
1.9
3.2
Q1 2007
0.4
1.2
1.5
2.0
4.1
0.1
1.4
1.5
1.8
4.2
Q2 2007
1.1
1.3
2.4
1.7
3.3
0.9
1.1
2.1
1.9
3.6
Q3 2007
2.7
0.4
3.1
2.2
1.8
2.6
0.2
2.8
2.5
2.2
Q4 2007
2.3
-0.2
2.2
-0.2
1.5
2.3
-0.2
2.1
0.0
1.7
Q1 2008
1.2
-0.4
0.7
-1.7
1.1
1.3
-0.5
0.8
-1.6
1.1
Q2 2008
1.5
-1.3
0.2
-1.8
0.9
1.5
-1.2
0.3
-1.9
0.9
Q3 2008
0.6
-2.0
-1.4
-2.1
2.3
0.6
-1.9
-1.3
-2.3
2.2
Q4 2008
-0.4
-4.2
-4.7
1.4
3.4
-0.3
-4.2
-4.4
1.3
3.2
Q1 2009
1.4
-6.5
-5.2
-0.4
-1.9
1.4
-6.4
-5.1
-0.4
-1.9
Q2 2009
2.3
-8.1
-6.0
2.8
-0.5
2.3
-7.9
-5.8
2.6
-0.6
Q3 2009
3.5
-8.2
-5.0
3.3
-1.8
3.7
-8.1
-4.6
3.3
-2.1
Q4 2009
5.4
-5.8
-0.7
-0.3
-4.0
5.6
-5.9
-0.6
-0.3
-4.2
Q1 2010
5.2
-3.2
1.8
0.7
-2.0
5.2
-3.3
1.8
0.6
-2.1
Q2 2010
3.6
-0.3
3.2
0.0
-1.8
3.6
-0.3
3.3
-0.1
-1.9
Q3 2010
2.6
1.4
4.1
0.3
-1.1
2.6
1.4
4.0
0.2
-1.1
Q4 2010
1.8
1.9
3.7
0.1
-0.4
1.6
1.9
3.6
0.0
-0.4
Q1 2011
0.4
2.1
2.5
1.7
3.4
0.4
2.1
2.5
1.5
3.3
Q2 2011
0.4
2.1
2.4
-1.2
1.7
0.3
2.0
2.2
-1.2
1.8
Q3 2011
-0.3
2.0
1.7
-1.4
2.6
-0.5
2.0
1.5
-1.5
2.7
Q4 2011
0.0
2.2
2.2
-2.7
0.5
0.0
2.2
2.2
-2.7
0.6
Q1 2012
1.0
2.7
3.8
-1.7
0.0
0.8
2.7
3.6
-1.6
0.3
Q2 2012
1.3
2.1
3.4
0.3
0.9
1.1
2.1
3.3
0.4
1.1
Q3 2012
1.3
2.0
3.4
0.0
0.4
1.1
2.0
3.1
0.1
0.7
Q4 2012
0.0
1.9
2.0
3.6
5.6
-0.2
1.8
1.7
3.8
6.0
Q1 2013
0.2
1.5
1.7
-0.8
0.8
0.5
1.3
1.7
-0.5
0.8
Q2 2013
-0.6
1.8
1.2
0.4
2.4
-0.1
1.5
1.4
0.7
2.2
Q3 2013
0.1
1.8
1.9
0.5
2.0
0.6
1.7
2.3
0.7
1.6
Q4 2013
1.6
1.6
3.2
-1.3
-1.6
2.0
1.6
3.6
-1.3
-2.0
Q1 2014
0.3
1.7
2.0
2.3
3.4
0.4
1.7
2.1
2.2
3.3
Q2 2014
1.0
2.1
3.1
-0.1
0.9
0.9
2.2
3.1
-0.3
0.9
Q3 2014
1.6
2.2
3.8
0.8
1.0
1.3
2.3
3.6
0.6
1.0
Q4 2014
0.2
2.9
3.1
1.7
2.7
-0.1
3.1
3.0
1.5
2.8
Q1 2015
1.4
2.7
4.2
2.0
0.5
1.0
3.1
4.1
1.6
0.5
Q2 2015
1.2
2.5
3.7
3.5
2.3
0.9
2.7
3.6
3.3
2.3
Q3 2015
0.7
1.8
2.5
3.1
2.6
0.7
1.9
2.6
3.1
2.5
Q4 2015
0.4
1.6
2.0
2.7
2.7
0.5
1.6
2.1
2.7
2.6
Q1 2016
0.0
1.6
1.6
1.4
2.5
0.1
1.6
1.7
1.4
2.4
Q2 2016
-0.4
1.5
1.1
0.6
2.1
-0.4
1.7
1.3
0.4
1.9
Percent change in productivity measures from same quarter in previous year, Q1 2006–Q2 2016
Quarter
Manufacturing
Durable goods manufacturing
Labor productivity
Hours worked
Output
Real hourly compensation
Unit labor costs
Labor productivity
Hours worked
Output
Real hourly compensation
Unit labor costs
Q1 2006
3.5%
0.8%
4.3%
-0.2%
0.0%
4.1%
1.5%
5.6%
0.2%
-0.1%
Q2 2006
2.3
1.9
4.2
-2.3
-0.7
2.5
2.8
5.3
-1.8
-0.4
Q3 2006
3.3
1.3
4.6
-2.3
-2.2
3.5
1.3
4.9
-1.8
-2.0
Q4 2006
4.0
-0.9
3.1
1.7
-0.2
2.9
-1.0
1.9
2.8
1.8
Q1 2007
4.4
-1.8
2.4
1.4
-0.5
4.4
-2.1
2.2
1.8
-0.2
Q2 2007
5.8
-1.8
3.9
1.9
-1.1
7.0
-2.4
4.4
2.1
-2.0
Q3 2007
6.5
-1.6
4.8
1.9
-2.0
6.9
-1.5
5.3
2.1
-2.3
Q4 2007
8.1
-1.6
6.4
-0.8
-4.5
9.1
-2.1
6.8
-1.0
-5.6
Q1 2008
9.4
-1.9
7.3
-2.6
-7.3
8.8
-1.9
6.7
-3.5
-7.6
Q2 2008
7.1
-2.7
4.2
-2.3
-4.8
5.0
-2.5
2.3
-2.6
-3.2
Q3 2008
3.0
-4.2
-1.3
-2.0
0.1
2.2
-5.1
-3.0
-1.9
1.0
Q4 2008
-3.8
-7.1
-10.6
2.8
8.5
-6.6
-7.4
-13.6
2.5
11.5
Q1 2009
-10.0
-11.7
-20.6
2.7
14.0
-12.5
-13.4
-24.2
2.7
17.2
Q2 2009
-10.2
-15.1
-23.7
5.6
16.5
-12.1
-17.9
-27.9
6.5
20.1
Q3 2009
-6.2
-14.1
-19.5
5.3
10.6
-7.2
-16.6
-22.7
5.7
12.1
Q4 2009
-0.2
-10.6
-10.8
1.1
2.9
0.7
-13.2
-12.6
2.1
2.9
Q1 2010
7.7
-4.8
2.5
-0.4
-5.3
9.5
-6.5
2.4
-0.2
-6.7
Q2 2010
12.5
0.1
12.6
-0.5
-10.0
15.2
-0.4
14.7
-0.1
-11.8
Q3 2010
11.6
2.4
14.3
-0.2
-9.5
11.8
3.0
15.1
-0.2
-9.7
Q4 2010
10.9
2.4
13.6
-0.4
-9.1
10.6
3.4
14.3
-0.7
-9.1
Q1 2011
8.9
2.5
11.6
1.8
-4.5
8.8
3.9
13.1
2.9
-3.4
Q2 2011
5.1
2.3
7.6
-1.6
-3.3
3.5
4.6
8.2
-2.3
-2.4
Q3 2011
5.1
1.1
6.3
-1.7
-3.0
4.3
2.7
7.1
-1.6
-2.2
Q4 2011
3.3
2.5
5.8
-3.8
-3.7
2.9
4.2
7.2
-4.0
-3.6
Q1 2012
2.7
2.7
5.4
-1.9
-1.7
2.9
3.9
6.9
-2.1
-2.2
Q2 2012
2.6
2.5
5.1
-0.2
-0.8
3.9
3.2
7.2
-0.3
-2.2
Q3 2012
0.7
2.6
3.4
-0.6
0.3
1.3
3.2
4.6
-1.3
-0.9
Q4 2012
1.1
1.4
2.5
1.4
2.3
1.8
1.4
3.2
1.3
1.5
Q1 2013
0.4
1.2
1.5
-1.8
-0.5
0.1
1.5
1.5
-2.8
-1.2
Q2 2013
0.7
0.1
0.9
-0.9
-0.3
0.3
0.2
0.5
-1.6
-0.5
Q3 2013
0.3
0.4
0.7
-0.5
0.7
0.4
0.7
1.0
-0.7
0.5
Q4 2013
-0.6
1.3
0.8
-1.6
0.2
-0.2
1.9
1.7
-2.7
-1.2
Q1 2014
-0.5
0.5
0.0
1.9
3.8
0.3
0.7
1.0
1.3
2.4
Q2 2014
-0.4
2.0
1.5
-0.3
2.2
0.3
2.6
3.0
-0.8
0.9
Q3 2014
0.5
1.9
2.4
0.6
1.8
1.0
2.9
3.9
-0.1
0.7
Q4 2014
0.7
1.9
2.6
2.4
2.9
1.0
2.2
3.3
2.6
2.8
Q1 2015
0.1
2.3
2.4
0.7
0.5
-0.4
2.5
2.1
1.2
1.5
Q2 2015
0.0
1.2
1.2
2.6
2.6
-0.4
0.9
0.5
3.1
3.5
Q3 2015
0.6
0.4
1.0
2.7
2.3
0.7
-0.5
0.2
3.1
2.5
Q4 2015
0.6
-0.4
0.1
3.5
3.4
0.2
-0.9
-0.7
4.0
4.2
Q1 2016
1.4
-0.7
0.7
2.2
1.9
1.2
-0.9
0.3
1.9
1.7
Q2 2016
0.9
-0.6
0.3
1.5
1.7
1.3
-1.0
0.3
1.2
1.0
Percent change in productivity measures from same quarter in previous year, Q1 2006–Q2 2016
Quarter
Nondurable goods manufacturing
Labor productivity
Hours worked
Output
Real hourly compensation
Unit labor costs
Q1 2006
1.2%
-0.3%
0.9%
-1.3%
1.2%
Q2 2006
0.2
0.3
0.4
-3.5
0.1
Q3 2006
0.5
1.3
1.9
-3.1
-0.4
Q4 2006
3.0
-0.8
2.2
-0.3
-1.3
Q1 2007
2.7
-1.4
1.3
0.6
0.4
Q2 2007
2.8
-0.7
2.0
1.6
1.5
Q3 2007
4.0
-1.6
2.3
1.5
-0.1
Q4 2007
3.4
-0.7
2.7
-0.3
0.3
Q1 2008
4.9
-2.1
2.7
-0.9
-1.6
Q2 2008
4.1
-2.9
1.0
-1.7
-1.5
Q3 2008
-0.6
-2.7
-3.3
-1.9
3.9
Q4 2008
-1.8
-6.6
-8.2
3.4
7.0
Q1 2009
-5.4
-8.8
-13.8
3.2
9.0
Q2 2009
-5.1
-10.0
-14.6
4.7
9.4
Q3 2009
-1.6
-9.8
-11.3
5.4
5.4
Q4 2009
0.6
-6.1
-5.5
0.1
0.9
Q1 2010
4.7
-2.1
2.5
-0.5
-2.8
Q2 2010
6.8
0.8
7.7
-1.1
-5.8
Q3 2010
7.4
1.5
9.0
-0.3
-6.1
Q4 2010
6.9
0.9
7.8
-0.1
-5.4
Q1 2011
5.5
0.2
5.7
-0.3
-3.5
Q2 2011
4.6
-1.3
3.3
-0.9
-2.1
Q3 2011
3.9
-1.3
2.6
-2.3
-2.5
Q4 2011
2.5
-0.3
2.2
-3.8
-3.0
Q1 2012
1.7
0.7
2.3
-1.7
-0.6
Q2 2012
0.6
1.2
1.8
-0.1
1.2
Q3 2012
-0.1
1.6
1.5
0.4
2.2
Q4 2012
0.2
1.5
1.7
1.6
3.4
Q1 2013
1.1
0.7
1.8
-0.1
0.5
Q2 2013
1.7
0.0
1.8
0.2
-0.1
Q3 2013
1.0
-0.1
0.9
-0.3
0.2
Q4 2013
-0.1
0.4
0.3
0.3
1.7
Q1 2014
-0.9
0.2
-0.7
2.9
5.3
Q2 2014
-0.7
0.8
0.2
0.5
3.3
Q3 2014
0.7
0.2
1.0
1.8
2.8
Q4 2014
0.7
1.3
2.0
2.0
2.6
Q1 2015
0.8
1.8
2.7
-0.3
-1.2
Q2 2015
0.3
1.7
2.0
1.7
1.5
Q3 2015
0.0
1.9
1.9
2.3
2.4
Q4 2015
0.7
0.4
1.1
2.7
2.4
Q1 2016
1.5
-0.4
1.0
2.7
2.3
Q2 2016
0.3
-0.1
0.3
2.3
3.0
Unit labor costs in the nonfarm business sector increased 2.1 percent from the second quarter of 2015 to the second quarter of 2016. Over the same period, unit labor costs in manufacturing increased 1.7 percent.
These data are from the Labor Productivity and Costs program. All percent changes shown are subject to revision. To learn more, see "Productivity and Costs — Second Quarter 2016, Preliminary" (HTML) (PDF). Labor productivity, or output per hour, is calculated by dividing an index of real output by an index of hours worked for all persons, including employees, proprietors, and unpaid family workers. Unit labor costs are the ratio of hourly compensation to labor productivity. Increases in hourly compensation raise unit labor costs, and increases in output per hour reduce unit labor costs.
United States Department of Labor
