Labour productivity in US' manufacturing sector up 2.9% in Q2 '23: BLS

The nondurable manufacturing sector posted a productivity growth of 2 per cent, reflecting a 1.5 per cent output dip and a 3.5 per cent hours worked contraction. However, a year-on-year analysis indicated a 1.3 per cent dip in the total manufacturing sector productivity.

The second quarter also observed a 4.9 per cent surge in unit labour costs in the complete manufacturing sector, propelled by an 8 per cent hourly compensation spike and a 2.9 per cent productivity growth. These unit labour costs had an upswing of 5.3 per cent compared to the same quarter in the preceding year, as per BLS.

Examining the broader picture, the manufacturing sector’s labour productivity witnessed a minute annual growth of 0.2 per cent since the initiation of the current business cycle in Q4 2019, illustrating a period where output and hours worked grew at modest annual rates of 0.3 and 0.1 per cent, respectively. This pace is somewhat greater than the stagnant growth observed in the previous business cycle spanning from Q4 2007 to Q4 2019.

ALCHEMPro News Desk (DP)