The revised data from the U.S. Labour Department showed on Tuesday that nonfarm business sector labor productivity in the United States decreased 0.2 percent q-o-q in the third quarter of 2019, as output advanced 2.3 percent q-o-q and hours worked rose 2.5 percent q-o-q (seasonally adjusted). That was above initial estimate of a decline of 0.3 percent q-o-q but below economists’ forecast for a drop of 0.1 percent q-o-q, and marked the first decrease in productivity since the fourth quarter of 2015. In the second quarter, labor productivity climbed 2.5 percent q-o-q.

In y-o-y terms, the labor productivity rose 1.5 percent in the third quarter, reflecting a 2.3-percent jump in output and a 0.9-percent advance in hours worked.

Meanwhile, unit labor costs in the nonfarm business sector in the third quarter rose 2.5 percent q-o-q compared to an initial estimate of a 3.6 percent q-o-q advance and a 2.4 percent q-o-q gain in the prior quarter.

Economists had forecast a 3.3 percent q-o-q boost in third-quarter unit labor costs.

Unit labor costs quarterly increase reflected a 2.3-percent q-o-q increase in compensation per hour and a 0.2-percent q-o-q fall in productivity.

Compared to the corresponding period of 2018, unit labor costs rose 2.2 percent.