Productivity declined in 2nd quarter
Productivity decreased at a 0.6-percent annual rate during the second quarter of 2016, the U.S. Bureau of Labor Statistics reported today, as output increased 1.1 percent and hours worked increased 1.7 percent.
Manufacturing sector labor productivity decreased 0.4 percent in the quarter, as output and hours worked decreased 0.8 percent and 0.4 percent, respectively. Output per hour increased 2.4 percent in the durable goods manufacturing sector, reflecting a 0.7 percent increase in output and a 1.8 percent decline in hours worked.
Productivity decreased 4.4 percent in the nondurable goods sector in the quarter, following a 4.0 percent first-quarter increase. Over the last four quarters, manufacturing productivity increased 0.9 percent, as output increased 0.3 percent and hours declined 0.6 percent.
Unit labor costs in manufacturing increased 6.7 percent in the second quarter of 2016 and rose 2.5 percent from the same quarter a year ago. Hourly compensation increased 6.3 percent in the second quarter of 2016.