Economic Buzz: US Labor Productivity Growth At 0.8% In Q3

8 Dec 2022 , 08:42 AM

Revised data released by the Labor Department on Wednesday showed U.S. labor productivity increased by much more than initially estimated in the third quarter. The Labor Department said labor productivity climbed by 0.8 percent in the third quarter compared to the previously reported 0.3 percent uptick. The upward revision to labor productivity, a measure of output per hour, came as the spike in output was upwardly revised to 3.3 percent from 2.8 percent, while the jump in hours worked was upwardly revised to 2.5 percent from 2.4 percent. Meanwhile, the report showed the surge in unit labor costs in the third quarter was downwardly revised to 2.4 percent from 3.5 percent. The jump in unit labor costs was expected to be downwardly revised to 3.2 percent. The downward revision to unit labor cost growth reflected the upward revision to productivity as well as a downward revision to the spike in hourly compensation, which was downwardly revised to 3.2 percent from 3.8 percent. Real hourly compensation, which takes changes in consumer prices into account, tumbled by 2.3 percent compared to the previously reported 1.7 percent slump. The downwardly revised jump in unit labor costs in the third quarter came after labor costs soared by 6.7 percent in the second quarter.Powered by Commodity Insights