The U.S. Bureau of Labor Statistics has reported that labor productivity in the nonfarm business sector increased by a modest 0.3 percent in the first quarter of 2024. This growth, although minimal, represents a positive trend amidst ongoing economic fluctuations. Output saw a 1.3 percent increase, while hours worked rose by 1.0 percent. Compared to the same quarter a year ago, nonfarm business sector labor productivity showed a more significant increase of 2.9 percent, a Bureau of Labor Statistics (BLS) press release said.
Unit labor costs within the nonfarm business sector surged by 4.7 percent during the first quarter of 2024. This increase is attributed to a 5.0-percent rise in hourly compensation, coupled with a marginal 0.3-percent increase in productivity. Over the past four quarters, unit labor costs have seen a more moderate increase of 1.8 percent.