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[IWS] BLS: PRODUCTIVITY AND COSTS - Third Quarter 2014, Preliminary [6 November 2014]
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Institute for Workplace Studies-----------------Professor Samuel B. Bacharach
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PRODUCTIVITY AND COSTS - Third Quarter 2014, Preliminary [6 November 2014]
[full-text, 12 pages]
Supplemental Files Table of Contents
Nonfarm business sector labor productivity increased at a 2.0 percent annual
rate during the third quarter of 2014, the U.S. Bureau of Labor Statistics
reported today, as output increased 4.4 percent and hours worked increased
2.3 percent. (All quarterly percent changes in this release are seasonally
adjusted annual rates.) From the third quarter of 2013 to the third quarter
of 2014, productivity rose 0.9 percent as output and hours worked increased
3.0 percent and 2.1 percent, respectively. (See table A.)
Labor productivity, or output per hour, is calculated by dividing an index
of real output by an index of hours worked of all persons, including
employees, proprietors, and unpaid family workers.
Unit labor costs in the nonfarm business sector rose 0.3 percent in the
third quarter of 2014, as a 2.3 percent increase in hourly compensation was
larger than the 2.0 percent increase in productivity. Unit labor costs
increased 2.4 percent over the last four quarters. (See tables A and 2.)
BLS calculates unit labor costs as the ratio of hourly compensation to labor
productivity; increases in hourly compensation tend to increase unit labor
costs and increases in output per hour tend to reduce them.
Manufacturing sector productivity increased 3.2 percent in the third quarter
of 2014, as output increased 4.1 percent and hours worked increased 0.8
percent. In the durable goods manufacturing sector, productivity grew 4.2
percent, reflecting a 6.6 percent increase in output and a 2.3 percent
increase in hours. In nondurable goods industries, productivity grew 3.0
percent, as output increased 1.2 percent and hours worked fell 1.8 percent.
(See tables A, 3, 4, and 5.) Over the last four quarters, manufacturing
productivity increased 2.8 percent, as output increased 4.4 percent and
hours increased 1.5 percent. Unit labor costs in manufacturing decreased 0.7
percent in the third quarter of 2014 and increased 0.6 percent from the same
quarter a year ago. (See tables A and 3.)
The concepts, sources, and methods used for the manufacturing output series
differ from those used in the business and nonfarm business output series;
these output measures are not directly comparable. See Technical Notes for a
more detailed explanation.
AND MORE...including TABLES....
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