U.S. Labor Productivity Jumps More Than Previously Estimated In Q4

RTTNews | vor 10Std 43 Minuten
Stocktwits
U.S. Labor Productivity Jumps More Than Previously Estimated In Q4

(RTTNews) - Labor productivity in the U.S. grew by more than previously estimated in the fourth quarter of 2024, according to a report released by the Labor Department on Thursday.

The report said labor productivity shot up by 1.5 percent in the fourth quarter compared to the previously reported 1.2 percent jump. Economists had expected the increase in labor productivity to be unrevised.

The stronger than previously estimated productivity growth came as the surge in output was upwardly revised to 2.4 percent from 2.3 percent, while the increase in hours worked was downwardly revised to 0.8 percent from 1.0 percent.

Meanwhile, the Labor Department said the spike in unit labor costs in the fourth quarter was downwardly revised to 2.2 percent from 3.0 percent. Economists had expected the jump in unit labor costs to be unrevised.

The downward revision to the surge in unit labor costs reflected the upward revision to labor productivity as well as a downward revision to hourly compensation.

The report said hourly compensation soared by 3.8 percent in the fourth quarter compared to the previously reported 4.2 percent spike.

Real hourly compensation, which takes changes in consumer prices into account, increased by 0.7 percent compared to the previously reported 1.1 percent jump.

The Labor Department also said the surge in labor productivity in the third quarter of 2024 was upwardly revised to 2.9 percent from 2.3 percent.

Revised data also showed unit labor costs slumped by 1.5 percent in the third quarter compared to the previously reported 0.5 percent increase.

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