Americans Working More for Better Pay

Americans are working more for better pay, according to a Q4 2013 Productivity and Costs report (link opens in PDF) released today by the Labor Department.

Nonfarm business sector labor productivity increased an annualized 3.2% for 2013's fourth quarter, driven ahead primarily by a 4.9% Q/Q increase in nonfarm output and a 1.7% increase in hours worked. After rising a revised 3.6% in Q3 2013, analysts had expected a more subdued 2.6% improvement. 

With significant productivity gains, employers enjoyed lower unit labor costs in Q4. Analysts had expected a 0.7% decline, but actual numbers came in at more than double the savings, down 1.6% Q/Q. But productivity paid off for employees as well, who enjoyed a 1.5% increase in hourly compensation.

Source: bls.gov 

For manufacturing, productivity increased 2.0%, while unit labor costs fell 1.0%. The Wall Street Journal notes that these latest increases in productivity could be part of the reason behind slow job expansion, making employment numbers look less menacing to the economic recovery.

Comparing this quarter to Q4 2012, overall productivity is up 1.7%.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2827078, ~/Articles/ArticleHandler.aspx, 10/31/2014 1:00:08 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement