Productivity in third quarter 2006

November 03, 2006

Productivity in the nonfarm business sector—as measured by output per hour of all persons—remained unchanged during the third quarter of 2006.

[Chart data—TXT]

Output grew at a 1.6-percent annual rate. Hours of all persons in the nonfarm business sector also increased 1.6 percent, reflecting 0.8-percent gains in both employment and average weekly hours at work.

In the second quarter, nonfarm business productivity increased 1.2 percent, as output grew 2.7 percent and hours worked rose by 1.5 percent.

Hourly compensation increased at a 3.7-percent annual rate in the third quarter of 2006. When the rise in consumer prices is taken into account, real hourly compensation rose 0.7 percent during the July-September period. During the second quarter of 2006, real hourly compensation had increased 1.6 percent.

Unit labor costs in the nonfarm business sector grew 3.8 percent during the third quarter of 2006, after rising 5.4 percent in the second quarter.

These data are from the BLS Productivity and Costs program. Data in this report are seasonally adjusted annual rates. These estimates are subject to revision. For more information, see "Productivity and Costs, Third Quarter 2006, preliminary" (PDF) (TXT), news release USDL 06-1902.