A solid 2.3% annual growth rate for nonfarm productivity was matched by a solid 2.4% gain in labor cost for the second quarter (Q2) 2019. That’s a beat on the moderate 1.5% and 2.0% consensus forecasts, respectively.
| Indicator | Prior | Prior Revised | Consensus Forecast | Forecast Range | Actual |
| Nonfarm Productivity – Q/Q ∆ – SAAR | 3.4% | 3.5% | 1.5% | 0.7% to 2.5% | 2.3% |
| Unit Labor Costs – Q/Q ∆ – SAAR | -1.6% | 2.0% | 0.2% to 2.8% | 2.4% |
Labor productivity, or output per hour, is calculated by dividing an index of real output by an index of hours worked by all persons, including employees, proprietors, and unpaid family workers.
Output increased 1.9% while hours worked fell 0.4%. Unit labor costs in the nonfarm business sector rose 2.4% in Q2 2019, roughly mirroring the 2.5% pace over the last four quarters.
