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Last Update: 03-Nov-11 09:21 ET
Nonfarm Productivity Increases By the Largest Amount Since Q1 2010
Labor productivity increased 3.1% in the third quarter. That was the first increase in productivity in two quarters and the strongest gain since Q1 2010. The Briefing.com consensus expected productivity to increase 2.8%.
The growth in productivity was due to a combination of high output growth -- increased 3.8% in Q3 2011, which was the strongest increase since Q4 2010 -- and weak gains in hours worked -- up 0.6%, which is the smallest gain since Q1 2010.
Workers did not benefit from the increased productivity.
Not only did growth in hours soften but compensation growth (+0.6%) was at its lowest level since Q4 2010. This led to a 2.4% decline in real compensation per hour. That was the biggest decline in real compensation since Q3 2008.
Businesses, on the other hand, saw unit labor costs decline 2.4% in the third quarter. That was the first decline since Q4 2010 and the largest decline since Q1 2010.
The growth in productivity was due to a combination of high output growth -- increased 3.8% in Q3 2011, which was the strongest increase since Q4 2010 -- and weak gains in hours worked -- up 0.6%, which is the smallest gain since Q1 2010.
Workers did not benefit from the increased productivity.
Not only did growth in hours soften but compensation growth (+0.6%) was at its lowest level since Q4 2010. This led to a 2.4% decline in real compensation per hour. That was the biggest decline in real compensation since Q3 2008.
Businesses, on the other hand, saw unit labor costs decline 2.4% in the third quarter. That was the first decline since Q4 2010 and the largest decline since Q1 2010.
