US Nonfarm Worker Productivity Growth Slowed in Q3
Growth of the US worker productivity slowed in the third quarter. The Labor Department reported, that nonfarm productivity, which measures hourly output per worker, rose by 2.2% qoq in Q3, in a line with forecasts. Compared to the third quarter of 2017, productivity increased at a rate of 1.3%. Data for the second quarter was revised slightly up to 3.0% pace instead of the previously reported 2.9% rate. Growth in second-quarter productivity was the strongest since the first quarter of 2015.
US worker productivity grew at an average rate of 1.3% between 2007 and 2017. That was slower than the 2.7% average pace between 2000 and 2007.
Meanwhile, unit labor costs, the price of labor per single unit of output, grew by 1.2% in the third quarter. On annual basis, labor costs increased by 1.5%. Unit labor costs fell by 1.0% in the second quarter, which was the largest drop since the third quarter of 2014.