U.S. labor productivity’s Q1 increase unrevised

The revised data from the U.S. Labour Department showed on Thursday that nonfarm business sector labor productivity in the United States surged 5.4 percent q-o-q in the first quarter of 2021, as output jumped 8.6 percent q-o-q and hours worked rose 3.0 percent q-o-q (seasonally adjusted). That was in line with the initial estimate of a gain of 5.4 percent q-o-q but slightly worse than economists’ forecast for an advance of 5.5 percent q-o-q. In the previous quarter, labor productivity fell 3.8 percent q-o-q .

In y-o-y terms, the labor productivity increased 4.1 percent, reflecting a 1.1-percent gain in output and a 2.9-percent drop in hours worked.

Meanwhile, unit labor costs in the nonfarm business sector in the first quarter climbed 1.7 percent q-o-q compared to an initial estimate of a 0.3 percent q-o-q decrease and a revised 14.0 percent q-o-q surge in the prior quarter (originally a 5.6 percent q-o-q increase). Economists had forecast a 0.4 percent q-o-q drop in first-quarter unit labor costs.

Unit labor costs quarterly gain reflected a 7.2-percent q-o-q jump in hourly compensation and a 5.4-percent q-o-q advance in productivity.

Compared to the corresponding period of 2020, unit labor costs rose 4.1 percent, as hourly compensation increased 8.3 percent and productivity rose 4.1 percent.