U.S. Productivity and Costs, Fourth Quarter and Annual Averages 2017

February 1, 2018

The U.S Bureau of Labor Statistics reported that nonfarm business sector labor productivity ( or output per hour) decreased 0.1% for the fourth quarter of 2017; this as the number of hours worked and the level of output increased 3.3% and 3.2% respectively.

Productivity was up 1.1% for the 12-month ending fourth quarter 2017. Output increased 3.2% for the same the same 12-month period, while hours worked was up 2.1%.

Unit labor costs in the nonfarm business sector rose 2% in the fourth quarter of 2017 as a result of a 1.8% increase the hourly compensation. The unit labor costs increased 1.3% over the last four quarters according to the U.S Bureau of Labor Statistics.

Manufacturing Sector

The preliminary report highlighted a rise in labor productivity for the manufacturing sector by 5.7% in the fourth quarter as output climbed 7.3% and hours by 1.5%. notably, these were the largest quarterly increases in the sector’s productivity and output since the second quarter of 2010. Productivity increased 6.7% in the durable goods manufacturing sector and 4.5% in the nondurable goods sector in the fourth quarter of 2017. Over the last four quarters, total manufacturing sector productivity increased 1.1%, as output increased 2.7% and hours worked increased 1.6%.

Annual averages

 The average annual rate of nonfarm business sector productivity growth from 2007 to 2017(corresponding to the current business cycle) is 1.2 percent, which is below the long-term rate from 1947 to 2017 of 2.1%. In comparison, Nonfarm business sector productivity grew 1.2% in 2017, as output and hours increased 2.9% and 1.6%, respectively. Unit labor costs in the nonfarm business sector increased 0.2% in 2017, reflecting increases of 1.5% in hourly compensation and 1.2% in productivity

In the manufacturing sector, productivity increased 0.7 percent in 2017, as output increased 1.7% and hours worked increased 1.0%. Manufacturing sector productivity has grown less than 1.0% in each of the last 7 years. The average annual rate of manufacturing productivity growth from 2007 to 2017 is 0.8%, well below the long-term rate from 1987 to 2017 of 2.7 percent. Unit labor costs increased 0.9% in 2017.

More Stories from the Market
shutterstock_316932977-700x441
April 28, 2025 Mexico’s economy is expected to see minimal growth this year due to the impact of U.S. tariffs, following a near technical recession …
shutterstock_68191825
April 28, 2025 Amid growing global economic volatility, countries in Latin America and the Caribbean must adapt their economic strategies to navigate…
ECL
April 28, 2025   Weekly Pick 04.28.2025 ECL   Disclaimer: Analyst Certification -The views expressed in this research report accurate…
shutterstock_453968572
April 28, 2025 United States: Bessent Says ‘It’s Up to China to De-Escalate’ in Trade War   Treasury Secretary Scott Bessent said “all aspect…
Logo - Mayberry Group Ltd.
April 28, 2025   Mayberry Group Limited (MGL) has declared a dividend of J$0.125 per share payable on May 30, 2025 to shareholders on record as…
logo
[tradesheetdata date=”Friday April 25, 2025″ link=”https://www.mayberryinv.com/wp-content/uploads/2025/04/tradesheet-fid680be976cda63.csv”]…
MIL
April 25, 2025 Mayberry Jamaican Equities Limited (MJE) has advised that the daily Net Asset Value (NAV) for April 23, 2025, was J$11.02. MJE’s closi…
MIL
April 25, 2025 Mayberry Jamaican Equities Limited (MJE) has advised that the daily Net Asset Value (NAV) for April 22, 2025, was J$11.03. MJE’s closi…