Non-Farm Productivity and Unit Labor Costs United States
Report on the efficiency of industrial workers. Key figures released in this report include Productivity and Unit Labor Costs.
Non-farm Productivity Measures the output produced for each hour of labor worked. Non-farm Productivity is considered the most accurate gauge of overall business health, given farming data small and volatile contribution to GDP. To businesses, higher productivity indicates efficient use of employees and capital. Given that labor costs make up more than two-thirds of the average businesses expenses, high productivity can allow a firm to fulfill consumer demand with less labor costs, boosting profitability. Thus trends in this report can precede investment spending and business growth. Also if prices raw materials increase, improved productivity can save a firm from passing higher costs to the end consumer. Given such business effects, healthy productivity growth bodes well for the economy as a whole, signaling increased production capability and business growth.
Productivity is reported as output per hour per worker, categorized into industry figures. On a Technical Note: The Non-Farm Productivity number is generated by comparing the number of hours worked (Employment Situation report) to Gross Domestic Product data.
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