U.S. Labor Productivity Rises 1.2% in Q4 2024

Nonfarm business productivity increased 1.2% in the fourth quarter of 2024, with output rising 2.3% and hours worked up 1.0%, the U.S. Bureau of Labor Statistics reported in February.

Unit labor costs rose 3.0% in Q4, reflecting a 4.2% increase in hourly compensation and the 1.2% productivity gain. Real hourly compensation, adjusted for inflation, increased 1.1%.

Manufacturing sector productivity grew 0.8% in Q4, despite output declining 1.0%, as hours worked fell 1.8%. Durable manufacturing saw productivity drop 1.0%, while nondurable manufacturing productivity increased 2.2%.

For the full year 2024, nonfarm business productivity increased 2.3%, with output up 2.9% and hours worked rising 0.6%. Manufacturing productivity gained 0.3% for the year.

Revised data will be released March 6, incorporating annual benchmark revisions.