US Bureau of Labor Statistics

Labor productivity of non-farm businesses down 4.6% in the second quarter of 2022

August 12, 2022

Non-farm business sector labor productivity fell 4.6% in the second quarter of 2022, as output fell 2.1% and hours worked increased 2.6%. Over the past 10 years, the change in labor productivity of non-farm businesses has ranged from -7.4% (in the first quarter of 2022) to 10.3% (in the second quarter of 2020).
















































Non-farm business productivity and costs, percentage change from previous quarter at annual rate, first quarter 2012 to second quarter 2022
Trimester Labor productivity (output per hour) Production Hours worked Hourly pay Unit labor costs

Q1 2012

1.8% 5.1% 3.2% 10.0% 8.0%

Q2 2012

1.7 2.6 0.9 2.0 0.3

Q3 2012

-0.4 1.2 1.6 0.4 0.8

Q4 2012

-1.3 0.8 2.1 11.0 12.5

Q1 2013

2.2 3.8 1.6 -5.7 -7.7

Q2 2013

-1.3 0.2 1.6 2.9 4.3

Q3 2013

1.9 4.2 2.4 -1.1 -2.9

Q4 2013

2.8 4.2 1.4 2.7 0.0

Q1 2014

-4.0 -2.1 1.9 8.0 12.5

Q2 2014

3.8 6.8 2.9 -1.8 -5.4

Q3 2014

3.5 6.4 2.8 2.6 -0.9

Q4 2014

-2.2 2.3 4.7 4.3 6.7

Q1 2015

3.4 4.0 0.5 5.3 1.8

Q2 2015

1.1 3.0 1.8 3.3 2.2

Q3 2015

-0.1 1.3 1.4 1.2 1.4

Q4 2015

-1.6 0.4 2.0 -0.2 1.5

Q1 2016

1.3 2.7 1.4 0.3 -1.0

Q2 2016

-0.3 1.2 1.6 1.1 1.4

Q3 2016

1.6 2.8 1.2 1.7 0.1

Q4 2016

2.3 2.8 0.5 4.3 2.0

Q1 2017

0.3 1.9 1.6 4.0 3.7

Q2 2017

-0.5 2.8 3.3 2.0 2.5

Q3 2017

3.4 3.8 0.5 5.1 1.7

Q4 2017

1.8 4.7 2.8 5.9 4.0

Q1 2018

1.3 3.6 2.3 2.5 1.2

Q2 2018

1.4 3.9 2.4 1.0 -0.4

Q3 2018

1.3 2.2 0.9 5.2 3.8

Q4 2018

0.1 1.1 0.9 1.9 1.7

Q1 2019

3.4 3.4 0.0 9.3 5.7

Q2 2019

3.7 3.6 -0.1 0.8 -2.8

Q3 2019

1.3 3.2 1.9 0.4 -0.9

Q4 2019

1.4 1.8 0.4 5.2 3.8

Q1 2020

-2.5 -7.4 -5.0 8.7 11.5

Q2 2020

10.3 -36.9 -42.7 21.6 10.3

Q3 2020

6.2 44.6 36.2 -4.7 -10.3

Q4 2020

-2.8 6.2 9.2 10.6 13.8

Q1 2021

2.2 8.4 6.1 -0.6 -2.7

Q2 2021

3.2 8.5 5.1 9.2 5.8

Q3 2021

-3.9 2.0 6.2 6.3 10.6

O4 2021

6.3 9.0 2.5 10.5 3.9

Q1 2022

-7.4 -2.5 5.3 4.4 12.7

Q2 2022

-4.6 -2.1 2.6 5.7 10.8


Unit labor costs in the non-farm business sector rose 10.8% in the second quarter of 2022, reflecting a 5.7% increase in hourly compensation and a 4.6% decline in the productivity.

Hourly compensation increased by 5.7% in the non-farm business sector in the second quarter of 2022.

This data comes from the Productivity program and is subject to revision. See “Productivity and Costs — Second Quarter 2022 (Preliminary)” for further details. Also see the charts linked to the latest “Productivity and Costs” press release. Labor productivity, or output per hour, is calculated by dividing an index of real output by an index of hours worked for all people, including employees, owners and unpaid family workers. Labor costs are calculated as the ratio of hourly compensation to labor productivity. Increases in hourly compensation tend to increase unit labor costs and increases in productivity to reduce them.

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