US nonfarm productivity falls 7.3% in Q1, largest decline since 1947

By Ovunc Kutlu

ANKARA (AA) - Nonfarm business sector labor productivity in the US decreased 7.3% in the first quarter of 2022, marking the largest quarterly decline since the July-September period of 1947, the Labor Department said Thursday.

The figure, which measures the change in labor efficiency when producing goods and services, was expected to show a quarterly decline of 7.5%.

On an annual basis, nonfarm labor productivity declined 0.6% in the first quarter of 2022, compared to the same period of last year, recording the largest annual decrease since 1993, it added.

Unit labor costs in the nonfarm business sector increased 12.6% in the first quarter of this year, from the previous quarter, according to the Labor Department.

The figure, which is the ratio of hourly compensation to labor productivity, rose 8.2% year-on-year, marking the largest annual increase since 1982, it added.