Nonfarm business sector labor productivity increased 1.5 percent during the second quarter of 2017, the U.S. Bureau of Labor Statistics reported today,

as output increased 4.0 percent and hours worked increased 2.5 percent. (All quarterly percent changes in this release are seasonally adjusted annual

rates.) From the second quarter of 2016 to the second quarter of 2017, productivity increased 1.3 percent, reflecting a 2.8-percent increase in

output and a 1.5-percent increase in hours worked.

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.

Unit labor costs in the nonfarm business sector increased 0.2 percent in the second quarter of 2017, reflecting a 1.8-percent increase in hourly

compensation and a 1.5-percent increase in productivity. Unit labor costs decreased 0.2 percent over the last four quarters.