US nonfarm productivity jumps 3.2% in 4Q23, beating estimates

By Ovunc Kutlu

ISTANBUL (AA) - US nonfarm business sector labor productivity jumped 3.2% in the fourth quarter of 2024, higher than 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 gain of 2.4%, according to market estimates.

The increase in the third quarter of 2023 was revised down 0.3 percentage point to 4.9% from 5.2%.

Unit labor costs in the nonfarm business sector increased 0.5% in the fourth quarter, compared to the previous quarter. This reflected a 3.7% increase in hourly compensation and a 3.2% gain in productivity.

While the expectation was to show a gain of 1.3%, unit labor costs decreased 1.1% in the second quarter.