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Nonfarm business sector productivity grew 1.9 percent in 2021
February 07, 2022
Nonfarm business sector productivity grew 1.9 percent in 2021, as output increased 7.4 percent and hours worked increased 5.4 percent. The increases in output and hours are the largest annual increases since 1984, when the measures increased 8.5 percent and 6.1 percent, respectively.
Labor productivity growth and related measures in nonfarm business sector, annual average changes, 1948 to 2021
Year
Labor productivity
Hours worked
Output
Hourly compensation
Unit labor costs
Real hourly compensation
1948
2.5%
1.6%
4.2%
8.7%
6.0%
0.6%
1949
3.2
-3.9
-0.8
2.9
-0.3
4.2
1950
6.7
3.2
10.1
5.9
-0.7
4.6
1951
2.6
4.7
7.4
8.7
5.9
0.7
1952
1.9
1.1
3.0
5.5
3.5
3.5
1953
2.4
2.5
5.0
5.6
3.0
4.8
1954
2.0
-3.4
-1.5
3.2
1.2
2.4
1955
4.3
4.0
8.5
3.6
-0.6
4.0
1956
-0.6
2.5
1.9
6.1
6.7
4.5
1957
2.6
-0.6
2.0
5.8
3.2
2.4
1958
2.3
-4.2
-2.0
4.0
1.6
1.1
1959
3.5
4.6
8.3
3.8
0.3
3.1
1960
1.2
0.6
1.8
4.3
3.1
2.6
1961
3.3
-1.1
2.2
3.3
0.1
2.3
1962
4.5
2.2
6.8
4.0
-0.5
3.0
1963
3.4
1.1
4.6
3.4
0.0
2.1
1964
2.8
3.7
6.7
3.0
0.2
1.7
1965
3.2
3.9
7.2
3.3
0.1
1.7
1966
3.6
3.5
7.2
5.9
2.2
3.0
1967
1.9
0.0
1.9
5.8
3.9
2.7
1968
3.5
1.8
5.3
7.5
3.9
3.2
1969
0.2
2.9
3.1
6.8
6.6
1.3
1970
1.5
-1.6
-0.1
7.0
5.4
1.2
1971
3.9
-0.2
3.7
6.1
2.1
1.7
1972
3.5
3.1
6.7
6.5
2.9
3.2
1973
3.1
4.1
7.3
7.6
4.4
1.3
1974
-1.6
0.1
-1.5
9.5
11.3
-1.4
1975
2.8
-4.3
-1.6
10.5
7.6
1.3
1976
3.5
3.6
7.2
7.8
4.1
1.9
1977
1.7
3.9
5.7
8.2
6.4
1.6
1978
1.4
5.2
6.7
8.6
7.1
1.5
1979
-0.2
3.6
3.4
9.5
9.8
0.0
1980
0.0
-0.8
-0.9
10.8
10.8
-0.4
1981
1.5
0.8
2.3
9.6
8.0
0.2
1982
-0.8
-2.3
-3.1
7.4
8.2
1.2
1983
4.1
2.0
6.2
4.5
0.4
0.2
1984
2.2
6.1
8.5
4.3
2.0
0.1
1985
1.8
2.6
4.4
4.9
3.1
1.4
1986
3.0
0.8
3.8
5.8
2.7
4.0
1987
0.6
3.0
3.6
3.8
3.2
0.3
1988
1.6
2.9
4.6
5.1
3.4
1.5
1989
0.9
2.7
3.7
2.9
2.0
-1.4
1990
1.7
-0.2
1.5
6.0
4.2
1.0
1991
1.6
-2.2
-0.6
4.8
3.1
1.1
1992
4.5
-0.4
4.1
6.2
1.7
3.6
1993
0.1
3.0
3.1
1.2
1.1
-1.3
1994
0.7
3.9
4.6
1.0
0.3
-1.1
1995
1.1
2.3
3.4
2.5
1.4
0.1
1996
2.1
2.3
4.5
3.5
1.3
0.8
1997
1.9
3.2
5.2
3.9
1.9
1.7
1998
3.4
2.2
5.6
5.8
2.3
4.4
1999
3.9
1.8
5.8
4.7
0.7
2.5
2000
3.0
1.4
4.4
7.0
3.9
3.5
2001
2.6
-1.9
0.7
4.4
1.7
1.5
2002
4.3
-2.5
1.7
2.3
-1.9
0.7
2003
3.7
-0.6
3.1
3.7
0.1
1.4
2004
3.0
1.3
4.3
4.6
1.5
1.8
2005
2.2
1.7
3.9
3.7
1.4
0.3
2006
1.0
2.3
3.3
3.8
2.8
0.6
2007
1.6
0.7
2.3
4.3
2.7
1.5
2008
1.3
-2.1
-0.9
2.9
1.6
-0.9
2009
3.6
-7.1
-3.9
0.9
-2.5
1.3
2010
3.4
-0.1
3.3
1.9
-1.5
0.2
2011
0.0
2.0
2.0
2.2
2.2
-0.9
2012
1.0
2.3
3.3
2.7
1.6
0.5
2013
0.5
1.7
2.2
1.3
0.7
-0.2
2014
0.7
2.3
3.0
2.8
2.1
1.1
2015
1.2
2.1
3.4
3.1
1.9
3.0
2016
0.4
1.4
1.8
1.1
0.7
-0.2
2017
1.2
1.5
2.7
3.5
2.3
1.4
2018
1.5
2.0
3.5
3.4
1.9
0.9
2019
2.0
0.7
2.7
3.8
1.8
2.0
2020
2.4
-6.6
-4.4
7.0
4.5
5.6
2021
1.9
5.4
7.4
5.2
3.3
0.5
Unit labor costs in the nonfarm business sector increased 3.3 percent in 2021, reflecting increases of 5.2 percent in hourly compensation and 1.9 percent in productivity. Real hourly compensation, which considers changes in consumer prices, increased 0.5 percent in 2021; consumer prices grew 4.7 percent in 2021, which was the highest annual growth rate since a 4.9 percent increase in 1990.
United States Department of Labor
