Productivity by State - 2022

For release 10:00 a.m. (ET) Thursday, May 25, 2023                                               USDL-23-1090

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				PRODUCTIVITY BY STATE - 2022
 
Labor productivity in the private nonfarm sector declined in 37 states and the District of Columbia in 
2022, the U.S. Bureau of Labor Statistics reported today. Output increased in 43 states and the District. 
Hours worked increased in 48 states and the District, and declined in Minnesota and Nebraska. Idaho 
experienced the highest growth in labor productivity, an increase of 4.0 percent. 

Labor productivity, output, and hours worked for select states, percent change, 2022
	* Idaho was the only state to see productivity rise more than 2.0 percent (+4.0 percent). 
	* Output growth exceeded 5.0 percent in Idaho (+5.4 percent) and Tennessee (+5.1 percent).
	* Nevada and Hawaii saw the highest growth in hours worked (+10.7 percent and +7.5 percent, 
	respectively).
	* All seven states experiencing declines in output also recorded increases in hours worked: Alaska, 
	Louisiana, Maryland, Mississippi, New Hampshire, North Dakota, and Oklahoma.
	* Eleven states saw labor productivity increase due to a rise in output that outpaced growth in hours 
	worked: Colorado, Connecticut, Florida, Idaho, Illinois, Iowa, Kentucky, South Dakota, 
	Tennessee, Vermont, and Wisconsin. 
	* Labor productivity growth in Minnesota (+1.7 percent) and Nebraska (+1.6 percent) was the result 
	of increasing output and declining hours worked. 

Contributions to national labor productivity, 2022

Each state's annual contribution to national productivity growth is calculated by multiplying the state's 
productivity growth rate by its average share of total current dollar national output. The economic size of 
each state influences its contribution to national and regional estimates. With a 4.5-percent decline in 
labor productivity in 2022, California had the largest influence on the national change, contributing to 
over one-third of the 1.9-percent decline at the national level. 

2019-22 trends
While increases in output and hours worked were widespread in 2022, not all areas have fully recovered 
to levels seen before the COVID-19 pandemic. Note that percent changes for periods of more than 1 year 
are annual percent changes. 
	* Three areas saw annualized labor productivity growth of more than 3.0 percent - the District of 
	Columbia (+4.8 percent), Washington (+3.3 percent), and Iowa (+3.1 percent).
	* Labor productivity has declined from 2019 to 2022 in nine states:
		o Alaska (-1.6 percent)
		o Hawaii (-0.8 percent)
		o Louisiana (-2.1 percent)
		o Nevada (-0.4 percent)
		o North Dakota (-0.4 percent)
		o Oklahoma (-0.8 percent)
		o Texas (-0.6 percent)
		o West Virginia (-0.2 percent)
		o Wyoming (-0.4 percent)
	* Annualized rates of hours worked declined for 24 states and the District of Columbia from 2019 to 
	2022. 
	* The District of Columbia saw the largest decrease in hours worked (-2.6 percent).
	* Idaho saw the highest growth in both output and hours worked (+5.8 percent and +3.0 percent, 
	respectively). 
	* Eight states have not yet returned to 2019 levels of output. 

Long term trends
	* From 2007 to 2022, labor productivity rose in 47 states and the District of Columbia. 
	* North Dakota experienced the highest rate of labor productivity growth of 2.7 percent per year. 
	* Three states had productivity declines from 2007 to 2022: Alaska (-0.3 percent), Louisiana (-0.6 
	percent), and Wyoming (-0.5 percent).
	* Output grew in 46 states and the District of Columbia while hours worked grew in 34 states and 
	the District of Columbia. 

Contributions to national labor productivity, 2007-22
 
California, New York, and Texas, which have the largest economies, contributed the most to national 
productivity growth, nearly 40 percent of the 1.3-percent increase. 

Additional Information

Measures of hours worked and employment for all states reflect a change in methods and are revised 
historically. Data from the BLS Current Population Survey (CPS) have been used to adjust measures of 
Current Employment Statistics (CES) all-employee hours paid to account for unpaid hours worked, also 
known as off-the-clock hours. These adjustments are also made for national measures of hours worked. 
For more information on the new hours worked methodology, see 
www.bls.gov/opub/mlr/2022/article/improving-estimates-of-hours-worked-for-us-
productivitymeasurement.htm. In addition, a scaling adjustment has been applied to state hours worked 
and employment measures to improve consistency between state and national labor measures.

Measures of output for all states reflect a change in methods and are revised historically. Estimates of 
owner-occupied housing, which are subtracted from output, are now based on imputed rent data provided 
by the Bureau of Economic Analysis (BEA). 

Output and compensation measures for 2021 and earlier years reflect revisions to GDP by state and 
industry data published by the BEA. Hours and employment data through 2021 have been revised to 
incorporate the BLS 2022 CES benchmark. 

Access the following productivity data at www.bls.gov/productivity/tables/labor-productivity-by-state-
and-region.xlsx:
	* Detailed data series: indexes of productivity and related measures; rates of change; and levels of state 
	employment, hours worked, value-added output, and labor compensation 
	* Additional years and long-term data

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