Productivity and Labor Costs Report for Q1 2023 (Preliminary)

The Labor Department's Bureau of Labor Statistics (BLS) this morning released its quarterly report on Productivity and Unit Labor Costs for the first quarter of 2023 (preliminary):

Nonfarm Productivity
Predicted: -1.0%
Actual: -2.7%

• Change from A Year Ago: -0.9%

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Unit Labor Costs
Predicted: +4.0%
Actual: +6.3%

• Change from A Year Ago: +5.8%

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The yellow-highlighted percentages represent the quarter-to-quarter change in non-farm productivity and unit labor costs for the United States.


For non-farm productivity, a positive number represents an improvement in the efficiency of producing domestic goods and services in the U.S., and therefore can signify a favorable inflationary outlook, and vice versa.

The Unit Labor Costs report measures the costs related to producing each unit of output. A positive number can be a harbinger of rising inflation, and vice versa.

The "predicted" figure is what economists were expecting, while the "actual" is the true or real figure.


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CHART: Labor Productivity
Q1 2019 Through Q1 2023 (Preliminary)

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CHART: Unit Labor Costs
Q1 2019 Through Q1 2023 (Preliminary)

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  CHART: Labor Productivity, Output
and Hours Worked Index Series
 Q4 2019 through Q1 2023

    

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From Today's Report

 

"...From the same quarter a year ago, nonfarm business sector labor productivity decreased 0.9%, reflecting a 1.3% increase in output and a 2.3% increase in hours worked. The 0.9-percent productivity decline is the first time the four-quarter change series has remained negative for five consecutive quarters; this series begins in the first quarter of 1948..."

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 Click here to view the full Labor Department report (PDF.)

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