The 2020 Mid-Year Economic Update_long

Manufacturing Sector Labor Productivity Declined 0.1% in the Third Quarter

Nonfarm business sector labor productivity decreased 0.3%.

Nonfarm business sector labor productivity decreased 0.3% in the third quarter of 2019, according to the U.S. Bureau of Labor Statistics. Output increased 2.1% and hours worked increased 2.4%. From the third quarter of 2018 to the third quarter of 2019, productivity increased 1.4%, reflecting a 2.3% increase in output and a 0.9% increase in hours worked. 

Manufacturing sector labor productivity declined 0.1% in the third quarter of 2019, as output increased 1.1% and hours worked increased 1.3%. Total manufacturing sector productivity also declined 0.1% over the last four quarters, as output decreased 0.5% and hours worked decreased 0.4%. Productivity increased 1.2% in the durable manufacturing sector in the third quarter of 2019, reflecting a 2.4% increase in output and a 1.2% increase in hours worked. Productivity decreased 1.5% in the nondurable manufacturing sector as output declined 0.2% and hours worked increased 1.3%. Unit labor costs in the manufacturing sector increased 3.6% in the third quarter of 2019, and increased 4.9% from the same quarter a year ago. 

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