Economic News Release USDL 22-0786

Productivity and Costs, First Quarter 2022, Preliminary


Transmission of material in this release is embargoed until 8:30 a.m. (ET) Thursday, May 5, 2022

Technical information: (202) 691-5606 • Productivity@bls.gov • www.bls.gov/productivity
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PRODUCTIVITY AND COSTS
First Quarter 2022, Preliminary

Nonfarm business sector labor productivity decreased 7.5 percent in the first quarter of 2022, the U.S. Bureau of Labor Statistics reported today, as output decreased 2.4 percent and hours worked increased 5.5 percent. This is the largest decline in quarterly productivity since the third quarter of 1947, when the measure decreased 11.7 percent. (All quarterly percent changes in this release are seasonally adjusted annual rates.) From the same quarter a year ago, nonfarm business sector labor productivity decreased 0.6 percent, reflecting a 4.2-percent increase in output that was outpaced by a 4.8-percent increase in hours worked. This is the largest four-quarter decline since the fourth quarter of 1993, when the measure also declined 0.6 percent. (See table A1.)

Unit labor costs in the nonfarm business sector increased 11.6 percent in the first quarter of 2022, reflecting a 3.2-percent increase in hourly compensation and a 7.5-percent decrease in productivity. Unit labor costs increased 7.2 percent over the last four quarters. (See table A1.) This is the largest four-quarter increase in this measure since an 8.2-percent increase in the third quarter of 1982. BLS calculates unit labor costs as the ratio of hourly compensation to labor productivity. Increases in hourly compensation tend to increase unit labor costs and increases in productivity tend to reduce them.

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The revised Productivity and Costs news release for first-quarter 2022 is scheduled to be released on Thursday, June 2, 2022 at 8:30 a.m. (ET).