Labor activity in US nonfarm business sector rises to 2.5 percent in Q2
(MENAFN) According to a report from the Bureau of labor Statistics released on Thursday, the labor productivity in the US nonfarm business sector for the second quarter of this year was revised upward to 2.5 percent, up from the initially reported 2.3 percent. This measure, which gauges the efficiency of labor in producing goods and services, showed a significant increase of 2.7 percent for the second quarter of 2023. The upward revision indicates a better-than-previously-expected improvement in labor productivity during this period.
In contrast, productivity in the manufacturing sector was revised downward. The productivity increase for this sector was adjusted to 1.3 percent, a reduction from the initially reported 1.8 percent. This revision reflects a downward adjustment of 1.0 percentage points in output and a 0.5 percentage point reduction in hours worked, suggesting that the initial productivity estimates were too optimistic.
Additionally, unit labor costs in the nonfarm business sector experienced a revision as well. The second-quarter increase in unit labor costs was adjusted to 0.4 percent, rather than the previously reported 0.9 percent. This change is attributed to a 0.3 percentage point downward revision in hourly compensation, while productivity saw a 0.2 percentage point upward revision. These adjustments indicate a lower increase in labor costs than initially reported.
Overall, the revised figures present a more nuanced picture of labor productivity and costs in the nonfarm business and manufacturing sectors. The upward revision in nonfarm productivity highlights improved labor efficiency, while the downward adjustments in manufacturing productivity and unit labor costs provide a more accurate reflection of economic conditions during the second quarter.
MENAFN08092024000045015839ID1108648719
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.