The preliminary data from the U.S. Labour Department showed on Tuesday that nonfarm business sector labor productivity in the United States rose 2.3 percent q-o-q in the second quarter of 2021, as output surged 7.9 percent q-o-q and hours worked increased 5.5 percent q-o-q (seasonally adjusted). This was worse than economists’ forecast for a 3.5 percent q-o-q advance after a revised 4.3 percent q-o-q gain in the first quarter (originally a 5.4 percent q-o-q climb).

In y-o-y terms, the labor productivity went up 1.9 percent in the second quarter, reflecting a 15.8-percent jump in output and a 13.6-percent climb in hours worked.

Meanwhile, unit labor costs in the nonfarm business sector in the second quarter rose 1.0 percent q-o-q compared to a revised 2.8 percent q-o-q drop in the prior quarter (originally a 1.7 percent q-o-q increase). Economists had forecast a 1.1 percent gain in first-quarter unit labor costs.

Unit labor costs quarterly gain reflected a 3.3-percent q-o-q increase in hourly compensation and a 2.3-percent rise in productivity.

Compared to the corresponding period of 2020, unit labor costs edged up 0.1 percent, as hourly compensation increased 2.0 percent and productivity grew 1.9 percent.