Labor Productivity up 4.9 Percent, Output up 43.5 Percent in Third Quarter 2020

Nonfarm business sector labor productivity increased 4.9% in the third quarter of 2020, following a 10.6% increase in the second quarter of 2020. Output increased 43.5% and hours worked increased 36.8% at annual rates in the third quarter. There were decreases in unit labor costs (−8.9%), hourly compensation (−4.4%), and real hourly compensations (−9.1%).

In both the second and third quarters of 2020, labor productivity increased 7.7%, the highest rate of productivity growth over two quarters since a 7.8% increase in both the third and fourth quarters of 1965.