US productivity surges in Q2

US worker productivity increased in the second quarter, leading to a decline in labour costs.

The Bureau of Labour Statistics revised its estimate for nonfarm productivity growth to 2.5 per cent from 2.3 per cent, indicating a stronger increase in output per worker.

Unit labour costs in the nonfarm business sector rose 0.4 percent in the second quarter of 2024, reflecting a 3.0-percent increase in hourly compensation and a 2.5-percent increase in productivity.

Unit labour costs increased 0.3 percent over the last four quarters, the lowest rate since the fourth quarter of 2013, when the measure decreased 2.2 percent.

Moreover, manufacturing sector labour productivity rose 1.3 percent in the second quarter as output surged 2.4 percent and hours worked inched up 1.1 percent. In the durable manufacturing sector, productivity rose 0.4 percent, marking a 1.7-percent increase in output and a 1.3-percent increase in hours worked. Nondurable manufacturing sector productivity go up by 2.3 percent as output increased 3.2 percent and hours worked rose 0.9 percent. Total manufacturing sector productivity ticked up 0.4 percent from the same quarter a year ago.

Attribution: The US Bureau of Labour Statistics