US labor productivity rises 2.3% in preliminary report value for the 2nd quarter, exceeding growth acceleration forecasts
August 2, 2024 2:25 AM GMT+9
Labor productivity (preliminary figures) in the non-farm sector for the second quarter announced by the U.S. Department of Labor on the 1st rose 2.3% from the previous fiscal year in terms of an annualized rate. Growth accelerated from 0.4% (revised upward from 0.2%) in the first quarter, and exceeded expectations by 1.7%.
This is a 2.7% increase compared to the same period last year. There is a possibility that the rise in labor costs will be suppressed by improved productivity, and the inflation outlook will further improve.
Unit labor costs, which indicate remuneration per unit of production, rose 0.9% from the previous fiscal year in the second quarter. Growth decelerated significantly from 3.8% (revised downward from 4.0%) in the first quarter.
EY Parthenon chief economist Gregory Daco said, “The recovery in productivity is encouraging for inflation and the economic outlook,” and stated that “if productivity grows strongly, companies can suppress costs and protect profits without sacrificing human resources.”
This is a 2.7% increase compared to the same period last year. There is a possibility that the rise in labor costs will be suppressed by improved productivity, and the inflation outlook will further improve.
Unit labor costs, which indicate remuneration per unit of production, rose 0.9% from the previous fiscal year in the second quarter. Growth decelerated significantly from 3.8% (revised downward from 4.0%) in the first quarter.
EY Parthenon chief economist Gregory Daco said, “The recovery in productivity is encouraging for inflation and the economic outlook,” and stated that “if productivity grows strongly, companies can suppress costs and protect profits without sacrificing human resources.”
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