Nonfarm business sector labor productivity increased 0.7% during the first quarter of 2018, the U.S. Department of Labor reported, as output increased 2.8% and hours worked increased 2.1%. From the first quarter of 2017 to the first quarter of 2018, productivity increased 1.3%, reflecting a 3.6% increase in output and a 2.2% increase in hours worked.
Manufacturing sector labor productivity rose 0.5% in the first quarter of 2018, as output increased 3.3% and hours worked increased 2.8%. Productivity increased 1.3% in the durable manufacturing sector, as output grew at a 5.5% rate and hours worked increased 4.2%. Over the last four quarters, total manufacturing sector productivity increased 0.8%, as output increased 2.5% and hours worked increased 1.6%. Unit labor costs in manufacturing increased 2.7% in the first quarter of 2018 and increased 1.3% from the same quarter a year ago.