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Nonfarm business labor productivity down 4.6 percent in second quarter 2022

August 12, 2022

Nonfarm business sector labor productivity decreased 4.6 percent in the second quarter of 2022, as output decreased 2.1 percent and hours worked increased 2.6 percent. Over the past 10 years, the change in nonfarm business labor productivity has ranged from −7.4 percent (in first quarter 2022) to 10.3 percent (second quarter 2020).

Nonfarm business productivity and costs, percent change from previous quarter at annual rate, first quarter 2012 to second quarter 2022
Quarter Labor productivity (output per hour)    Output    Hours worked Hourly compensation Unit labor costs

Q1 2012

1.8% 5.1% 3.2% 10.0% 8.0%

Q2 2012

1.7 2.6 0.9 2.0 0.3

Q3 2012

-0.4 1.2 1.6 0.4 0.8

Q4 2012

-1.3 0.8 2.1 11.0 12.5

Q1 2013

2.2 3.8 1.6 -5.7 -7.7

Q2 2013

-1.3 0.2 1.6 2.9 4.3

Q3 2013

1.9 4.2 2.4 -1.1 -2.9

Q4 2013

2.8 4.2 1.4 2.7 0.0

Q1 2014

-4.0 -2.1 1.9 8.0 12.5

Q2 2014

3.8 6.8 2.9 -1.8 -5.4

Q3 2014

3.5 6.4 2.8 2.6 -0.9

Q4 2014

-2.2 2.3 4.7 4.3 6.7

Q1 2015

3.4 4.0 0.5 5.3 1.8

Q2 2015

1.1 3.0 1.8 3.3 2.2

Q3 2015

-0.1 1.3 1.4 1.2 1.4

Q4 2015

-1.6 0.4 2.0 -0.2 1.5

Q1 2016

1.3 2.7 1.4 0.3 -1.0

Q2 2016

-0.3 1.2 1.6 1.1 1.4

Q3 2016

1.6 2.8 1.2 1.7 0.1

Q4 2016

2.3 2.8 0.5 4.3 2.0

Q1 2017

0.3 1.9 1.6 4.0 3.7

Q2 2017

-0.5 2.8 3.3 2.0 2.5

Q3 2017

3.4 3.8 0.5 5.1 1.7

Q4 2017

1.8 4.7 2.8 5.9 4.0

Q1 2018

1.3 3.6 2.3 2.5 1.2

Q2 2018

1.4 3.9 2.4 1.0 -0.4

Q3 2018

1.3 2.2 0.9 5.2 3.8

Q4 2018

0.1 1.1 0.9 1.9 1.7

Q1 2019

3.4 3.4 0.0 9.3 5.7

Q2 2019

3.7 3.6 -0.1 0.8 -2.8

Q3 2019

1.3 3.2 1.9 0.4 -0.9

Q4 2019

1.4 1.8 0.4 5.2 3.8

Q1 2020

-2.5 -7.4 -5.0 8.7 11.5

Q2 2020

10.3 -36.9 -42.7 21.6 10.3

Q3 2020

6.2 44.6 36.2 -4.7 -10.3

Q4 2020

-2.8 6.2 9.2 10.6 13.8

Q1 2021

2.2 8.4 6.1 -0.6 -2.7

Q2 2021

3.2 8.5 5.1 9.2 5.8

Q3 2021

-3.9 2.0 6.2 6.3 10.6

O4 2021

6.3 9.0 2.5 10.5 3.9

Q1 2022

-7.4 -2.5 5.3 4.4 12.7

Q2 2022

-4.6 -2.1 2.6 5.7 10.8

Note: Ouarterly percent changes are seasonally adjusted annual rates.

Unit labor costs in the nonfarm business sector increased 10.8 percent in the second quarter of 2022, reflecting a 5.7-percent increase in hourly compensation and the 4.6-percent decrease in productivity.

Hourly compensation increased 5.7 percent in the nonfarm business sector in the second quarter of 2022.

These data are from the Productivity program and are subject to revision. See "Productivity and Costs — Second Quarter 2022 (Preliminary)" to learn more. Also see charts related to the latest "Productivity and Costs" news release. 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. Labor costs are calculated as the ratio of hourly compensation to labor productivity. Increases in hourly compensation tend to increase unit labor costs and increases in productivity tend to reduce them.

SUGGESTED CITATION

Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, Nonfarm business labor productivity down 4.6 percent in second quarter 2022 at https://www.bls.gov/opub/ted/2022/nonfarm-business-labor-productivity-down-4-6-percent-in-second-quarter-2022.htm (visited November 28, 2022).