U.S. Labor Productivity Increases by 3.2% in Fourth Quarter of 2023
The increase resulted in a 3.5 percent rise in output despite hours worked showing a modest 0.3% uptick
The U.S. Bureau of Labor Statistics (BLS) has reported that labor productivity in the nonfarm business sector surged by 3.2 percent in the fourth quarter of 2023. This increase resulted in a 3.5 percent rise in output, while hours worked saw a modest uptick of 0.3 percent. Compared to the same quarter a year ago, nonfarm business sector labor productivity increased by 2.6 percent. Additionally, annual average productivity for 2023 showed a growth of 1.3 percent compared to the previous year.
Durable Manufacturing Sector Faces Decline
In the manufacturing sector, productivity showed a mixed performance. While overall manufacturing sector productivity increased by 1.3 percent in the fourth quarter of 2023, the durable manufacturing sector experienced a decline of 1.0 percent. This decline can be attributed to a 4.0-percent decrease in output coupled with a 3.0-percent decrease in hours worked, marking the largest decline in hours worked since the second quarter of 2020.
