Productivity and Costs

The latest Productivity and Costs report from the U.S. Bureau of Labor Statistics reveals a 1.2% increase in nonfarm business sector productivity for the fourth quarter of 2024. While output rose by 2.3%, hours worked increased by just 1.0%, suggesting efficiency gains. However, unit labor costs also climbed by 3.0%, reflecting a mix of rising wages and productivity growth. The report highlights trends across manufacturing and labor markets, shedding light on the shifting dynamics of the U.S. economy.