US nonfarm productivity falls 2.7% in Q1, more than estimates

Unit labor costs increase 6.3% in 1st quarter of this year

By Ovunc Kutlu

ISTANBUL (AA) - US nonfarm business sector labor productivity decreased 2.7% in the first quarter of this year, from the previous quarter, falling more than market estimates, according to the Bureau of Labor Statistics figures released Thursday.

The figure, which measures the change in labor efficiency when producing goods and services, was expected to show a quarterly decline of 1.8%, according to the market estimates.

The labor productivity increase for the fourth quarter of 2022 was revised down 0.1 percentage point to 1.6%, from 1.7%.

Annually, the nonfarm business sector labor productivity decreased 0.9% in the first quarter, compared to the same period last year.

Unit labor costs in the nonfarm business sector increased 6.3% in the first quarter, compared to the previous quarter. This reflected a 3.4% increase in hourly compensation and a 2.7% decrease in productivity, said the agency.

The figure, which is the ratio of hourly compensation to labor productivity, rose 5.8% year-on-year.

Manufacturing sector labor productivity decreased 1.3% on a quarterly basis and declined 1.2% annually.

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