Global| Feb 02 2012U.S. Labor Productivity Increases Modestly While Compensation Jumps
by:Tom Moeller
|in:Economy in Brief
Summary
Growth in labor productivity eased last quarter to an expected 0.7% after a revised 1.9% Q3 increase, last month reported as 3.1%. Slower growth in productivity was the story for all of last year with a 0.8% gain after a 4.1% rise in [...]
Growth in labor productivity eased last quarter to an expected 0.7% after a revised 1.9% Q3 increase, last month reported as 3.1%. Slower growth in productivity was the story for all of last year with a 0.8% gain after a 4.1% rise in 2010. Output rose at a 3.6% rate (2.3% y/y) and hours worked grew at a 2.9% rate (1.8% y/y).
Compensation growth picked up to 1.9% following two quarters of decline. That rise pulled up unit labor costs at a 1.2% rate. As a result, unit labor costs rose 1.1% for the year, also following two consecutive years of decline.
Factory sector productivity fared no better than the total and fell at a 0.4% rate. That left the full-year gain of 2.8% half that in 2010. Along with a rise in compensation at a 1.2% last quarter, unit labor costs grew 1.6% but were down 1.3% for the year.
The productivity & cost figures are available in Haver's USECON database.
| Productivity & Costs (SAAR,%) | Q4'11 | Q3'11 | Q2'11 | Q4 Y/Y | 2011 | 2010 | 2009 |
|---|---|---|---|---|---|---|---|
| Nonfarm Business Sector | |||||||
| Output per Hour (Productivity) | 0.7 | 1.9 | -0.1 | 0.5 | 0.8 | 4.1 | 2.3 |
| Compensation per Hour | 1.9 | -0.3 | -0.2 | 1.7 | 1.9 | 2.1 | 1.6 |
| Unit Labor Costs | 1.2 | -2.1 | -0.1 | 1.3 | 1.1 | -2.0 | -0.7 |
| Manufacturing Sector | |||||||
| Output per Hour | -0.4 | 5.3 | -2.1 | 1.7 | 2.8 | 6.0 | 0.6 |
| Compensation per Hour | 1.2 | -0.6 | -2.1 | 0.6 | 1.5 | 1.6 | 4.5 |
| Unit Labor Costs | 1.6 | -5.6 | -0.0 | -1.1 | -1.3 | -4.2 | 4.0 |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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