The preliminary
data from the U.S. Labour Department revealed on Thursday that nonfarm business
sector labour productivity in the United States increased
2.2 per cent q-o-q in the third quarter of 2024, reflecting a 3.5 per cent
q-o-q surge in output and a 1.2 per cent q-o-q advance in hours worked
(seasonally adjusted). This was the largest rise
in productivity since the fourth quarter of 2023 (+3.1 per cent q-o-q) but slightly
worse than economists’ estimate for a 2.3 per cent q-o-q gain after a downwardly
revised 2.1 per cent q-o-q increase (from +2.5 per cent q-o-q) in the second
quarter of 2024.
In y-o-y terms, labour productivity jumped 2.0 per cent in the third quarter, with output rising
2.8 per cent and hours worked increasing 0.7 per cent.
Meanwhile, unit
labour costs in the nonfarm business sector climbed 1.9
per cent q-o-q in the third quarter, following an upwardly revised 2.4 per cent q-o-q soar (from +0.4
per cent q-o-q) in the prior three-month period. This marked the weakest advance
in this measure in three quarters. Economists had forecast a 1.0 per cent increase in third-quarter
unit labour costs.
Unit labour
costs quarterly gain flowed from a 4.2-per cent q-o-q advance in hourly
compensation and a 2.2-per cent q-o-q rise in productivity.
Compared to the corresponding period of 2023,
unit labour costs surged 3.4 per cent, as hourly compensation climbed 2.8 per
cent and productivity jumped 2.0 per cent.