U.S. productivity rebounds in fourth-quarter


The numbers: U.S. productivity rose at a 3% annual clip in the fourth quarter, the government said Thursday. That’s the fastest pace for the year.

Economists surveyed by the Wall Street Journal had projected a 2.5% increase. 

In all of 2022, U.S. productivity declined at a 1.3% rate. That’s the lowest annual rate since 1974. Some economists point to the post-pandemic return of workers in sectors like leisure and hospitality and health care.

Key details: Output in the fourth quarter rose 2.3%. Hours worked rose 0.5%.  Outside of the pandemic, that is the lowest level of hours worked since the fourth quarter of 2019.

Unit-labor costs, a key measure of wages, rose 1.1% in the fourth quarter. That’s down from a 2% rate in the third quarter. Economists has expected a 1.5% gain.  

For all of 2022, unit labor costs rose 5.7%. That’s the fastest pace since 1982.

Real hourly compensation rose 1% in the fourth quarter after a 2.2% drop in the prior quarter. For the year, real compensation is down 3.4%.

Productivity in the manufacturing sector fell at a 1.5% rate in the fourth quarter and was down 0.9% for the year.

Big picture: If the fourth quarter trends continue, productivity could be returning to a rising trend. But that is a big if.

It remains an open question how the trend of working from home impacts productivity.

Unit labor costs reflects higher wages. Economists said the gain was not consistent with the Fed’s 2% target.

Market reaction: Stocks


were set to open mixed on Thursday following Fed Chairman Jerome Powell’s news conference. The yield on the 10-year Treasury note

slipped to 3.37%.


Source link


Jacob Keiter is a husband, a writer, a journalist, a musician, and a business owner. His journey to becoming a writer was one that was paved with challenges, but ultimately led him to find his true calling. Jacob's early years were marked by a strong desire for creative expression. He was always drawn to music, and in his youth, he played in several bands, chasing the elusive promise of fame and success. However, despite his best efforts, Jacob struggled to find the recognition he craved. It wasn't until he hit a low point in his life that Jacob discovered his love for writing. He turned to writing as a form of therapy during a particularly difficult time, and found that it not only helped him to cope with his struggles, but also allowed him to express himself in a way that he had never been able to before. Jacob's writing skills quickly caught the attention of others, and he soon found himself working as a journalist for The Sun out of Hummelstown. From there, he went on to contribute to a variety of publications, including the American Bee Journal and Referee Magazine. Jacob's writing style is reflective of traditional journalism, but he also infuses his work with a unique voice that sets him apart from others in his field. Despite his success as a writer, Jacob also owns another business, JJ Auto & Home, which specializes in cleaning. Jacob's commitment to excellence is evident in all of his endeavors, whether it be in his writing or in his business ventures. Today, Jacob is the author of two books and continues to inspire others through his writing. His journey to becoming a writer serves as a reminder that sometimes our darkest moments can lead us to our greatest achievements.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *