Posted May 5, 2022

Productivity declined 7.5 percent in Q1

Nonfarm business sector labor productivity decreased 7.5 percent in the first quarter of 2022, the U.S. Bureau of Labor Statistics reported today, as output decreased 2.4 percent and hours worked increased 5.5 percent.

This is the largest decline in quarterly productivity since the third quarter of 1947, when the measure decreased 11.7 percent.

Unit labor costs in the nonfarm business sector increased 11.6 percent in the first quarter of 2022, reflecting a 3.2-percent increase in hourly compensation and a 7.5-percent decrease in productivity.

Manufacturing sector labor productivity increased 0.7 percent in the first quarter of 2022, as output increased 5.7 percent and hours worked increased 5.1 percent. In the durable manufacturing sector, productivity increased 1.4 percent, with a 7.9-percent increase in output and a 6.4-percent increase in hours worked. Nondurable manufacturing sector productivity increased 0.5 percent, with a 3.4-percent increase in output and a 2.9-percent increase in hours worked. 

Click for details.