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Nonfarm business sector labor productivity decreased 5.0 percent in the third quarter of 2021
November 15, 2021
Nonfarm business sector labor productivity decreased 5.0 percent in the third quarter of 2021, as output increased 1.7 percent and hours worked increased 7.0 percent. This is the lowest rate of quarterly productivity growth since the second quarter of 1981, when the measure decreased 5.1 percent.
Productivity and costs by sector, percent change from previous quarter at annual rate, 3rd quarter 2021
Measure
Business
Nonfarm Business
Manufacturing
Labor productivity
-4.8%
-5.0%
-1.0%
Output
1.4
1.7
5.7
Hours Worked
6.5
7.0
6.7
Hourly compensation
3.3
2.9
1.9
Unit labor costs
8.5
8.3
2.9
Unit labor costs in the nonfarm business sector increased at an annual rate of 8.3 percent in the third quarter of 2021, reflecting a 2.9 percent increase in hourly compensation and a 5.0 percent decrease in productivity.
The third quarter of 2021 is the fifth consecutive quarter with increases in both output and hours worked, following historic declines in those measures in the second quarter of 2020 owing to the COVID-19 pandemic.
United States Department of Labor
