Posted May 5, 2011
Manufacturing productivity jumps 6.3%
Manufacturing sector productivity grew 6.3 percent in the first quarter of 2011, according to the U.S. Bureau of Labor Statistics.
Output increased 9.7 percent while hours worked increased by 3.3 percent.
Over the last four quarters, manufacturing productivity increased 4.7 percent. Unit labor costs in manufacturing declined 3.5 percent in the first quarter of 2011 and 1.4 percent over the last four quarters.
Productivity increased 9.8 percent in the durable goods sector and 4.5 percent in the nondurable goods sector in the first quarter of 2011. In durable goods industries, a 16.4 percent jump in output outweighed a 6.1 percent increase in hours worked; this gain in output is the largest in the series. Nondurable goods production rose 3.3 percent while hours fell 1.2 percent.
Total nonfarm business sector labor productivity increased at a 1.6 percent annual rate during the first quarter of 2011.
Productivity is the amount of output per hour of work. Increases in productivity allow companies to pay workers more without raising prices of their products, which can cause inflation.
