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Nonfarm business sector productivity increased at 3.1 percent annual rate during third quarter 2016

November 09, 2016

During the third quarter of 2016, nonfarm business sector labor productivity increased at a 3.1 percent annual rate. This quarterly increase was the first since the third quarter of 2015. Hours worked in the nonfarm business sector increased at an annual rate of 0.3 percent, while output increased at an annual rate of 3.4 percent. Real hourly compensation increased at a 1.7 percent annual rate over the quarter.

Percent change in labor productivity and real hourly compensation from previous quarter at annual rate, third quarter 2006 to third quarter 2016
Quarter Nonfarm business Manufacturing
Labor productivity Real hourly compensation Hours worked Output Labor productivity Real hourly compensation Hours worked Output

Q3 2006

-1.7% -3.3% 2.3% 0.5% 5.7% -2.0% -3.4% 2.1%

Q4 2006

3.1 9.1 1.3 4.5 6.2 10.9 -4.0 1.9

Q1 2007

0.4 5.9 0.1 0.5 4.7 4.0 -1.1 3.5

Q2 2007

2.6 -4.5 1.5 4.1 6.6 -4.6 1.4 8.1

Q3 2007

4.6 -1.2 -1.2 3.4 8.3 -1.9 -2.4 5.7

Q4 2007

1.7 -0.6 -0.9 0.8 13.0 -0.5 -4.1 8.3

Q1 2008

-4.0 -0.4 -1.1 -5.1 9.7 -3.3 -2.6 6.9

Q2 2008

4.0 -4.8 -1.9 2.0 -2.0 -3.3 -1.6 -3.6

Q3 2008

1.0 -2.7 -4.2 -3.2 -7.2 -0.8 -8.5 -15.1

Q4 2008

-2.5 14.5 -9.6 -11.8 -14.1 20.5 -15.2 -27.1

Q1 2009

3.1 -7.1 -10.1 -7.3 -16.2 -3.6 -20.5 -33.3

Q2 2009

7.9 7.8 -8.4 -1.2 -2.6 8.0 -15.6 -17.8

Q3 2009

6.0 -0.6 -4.7 0.9 10.1 -1.8 -4.4 5.3

Q4 2009

4.8 -0.8 0.3 5.1 10.3 2.4 -0.5 9.8

Q1 2010

2.1 -3.4 0.2 2.2 13.6 -9.4 2.2 16.1

Q2 2010

1.5 4.9 3.2 4.7 15.9 7.4 3.2 19.6

Q3 2010

2.0 0.6 2.1 4.1 6.7 -0.6 4.9 11.9

Q4 2010

1.6 -1.5 2.2 3.8 7.5 1.7 -0.4 7.1

Q1 2011

-3.3 2.9 0.9 -2.5 5.8 -0.9 2.3 8.2

Q2 2011

1.3 -6.6 3.1 4.5 0.7 -6.5 2.5 3.2

Q3 2011

-0.8 -0.1 1.9 1.1 6.6 -1.1 0.2 6.8

Q4 2011

3.1 -6.5 2.7 5.8 0.3 -6.5 4.9 5.2

Q1 2012

0.6 7.0 3.2 3.9 3.4 7.0 3.1 6.5

Q2 2012

2.3 1.4 0.4 2.7 0.2 0.3 1.7 1.9

Q3 2012

-0.8 -1.5 1.9 1.0 -1.0 -2.9 0.9 0.0

Q4 2012

-2.0 7.8 2.2 0.2 1.7 1.4 0.0 1.8

Q1 2013

1.3 -10.0 1.6 2.8 0.5 -6.1 2.1 2.6

Q2 2013

-0.7 6.3 1.3 0.6 1.7 4.0 -2.4 -0.7

Q3 2013

1.7 -0.9 2.0 3.8 -2.6 -1.2 1.9 -0.8

Q4 2013

4.1 0.3 1.4 5.6 -1.7 -2.9 3.8 2.0

Q1 2014

-3.7 3.8 2.0 -1.8 0.9 8.0 -1.2 -0.3

Q2 2014

2.0 -3.6 3.0 5.1 1.9 -4.5 3.4 5.3

Q3 2014

4.2 3.0 2.3 6.5 1.2 2.4 1.6 2.8

Q4 2014

-1.6 3.9 4.4 2.7 -1.1 4.1 3.9 2.7

Q1 2015

1.1 4.8 1.3 2.4 -1.7 1.0 0.3 -1.4

Q2 2015

1.2 2.2 1.9 3.1 1.5 2.9 -0.9 0.6

Q3 2015

2.0 1.5 -0.2 1.8 3.7 3.0 -1.7 1.9

Q4 2015

-2.4 2.3 3.3 0.8 -1.1 7.4 0.6 -0.5

Q1 2016

-0.6 -0.6 1.4 0.7 1.4 -4.5 -0.8 0.6

Q2 2016

-0.2 1.2 1.7 1.6 -0.5 3.6 -0.5 -1.1

Q3 2016(p)

3.1 1.7 0.3 3.4 1.0 1.6 0.1 1.1
Footnotes:

(p) = preliminary.

In the manufacturing sector, labor productivity increased at an annual rate of 1.0 percent during the third quarter of 2016, as output increased at a 1.1 percent annual rate and hours worked increased at a 0.1 percent annual rate. Real hourly compensation in manufacturing increased at an annual rate of 1.6 percent over the quarter.

These data are from the Labor Productivity and Costs program. All percent changes shown are subject to revision. To learn more, see "Productivity and Costs — Second Quarter 2016, Preliminary" (HTML) (PDF). Labor productivity, or output per hour, is calculated by dividing an index of real output by an index of hours worked for all persons, including employees, proprietors, and unpaid family workers.

SUGGESTED CITATION

Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, Nonfarm business sector productivity increased at 3.1 percent annual rate during third quarter 2016 on the Internet at https://www.bls.gov/opub/ted/2016/nonfarm-business-sector-productivity-increased-at-3-point-1-percent-annual-rate-during-third-quarter-2016.htm (visited January 21, 2021).