The US Bureau of Labor Statistics has released revised productivity estimates for the second quarter of 2021. The following article has been updated to reflect these revisions. All figures are reported as growth from the previous quarter at seasonally adjusted annualized rates.

Nonfarm business sector labour productivity in the US grew 2.1% in Q2 2021, a 0.2 percentage point downward revision from the preliminary estimate of 2.3%. Output increased at an annualized rate of 8.1% in Q2, slightly slower than the 8.4% increase in the previous quarter.  Hours worked increased at an annualized rate of 6.0% after growing 4.0% in the first quarter of 2021.

Recent increases in output and hours continue the recovery from historic declines in Q2 2020. Compared with the pre-pandemic benchmark of Q4 2019, output was up by 1.3% though hours worked were still down by 2.7%.  

US unit labour costs rose 1.3% (annual rate) in Q2 2021, reflecting a 3.4% gain in hourly compensation, offset by the 2.1% increase in labour productivity.

US manufacturing sector labour productivity increased by 8.0% in Q2 2021.  Manufacturing output increased 5.5% while hours worked fell 2.3%. Durable goods industries reported a 4.6% increase in productivity caused by a decline in hours worked (-5.2%) that outpaced the fall in output (-0.9%).  In contrast, nondurable goods manufacturing productivity increased by 10.0%, but this was attributable to a 12.9% rise in output that outpaced the 2.7% increase in hours worked. 

Source: US Bureau of Labor Statistics