Nonfarm business sector labor productivity decreased at a 0.6-percent annual rate during the first quarter of 2017, the U.S. Bureau of Labor Statistics

reported today, as output increased 1.0 percent and hours worked increased 1.6 percent.

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 3.0 percent in the first quarter of 2017, reflecting a 2.4-percent increase in hourly compensation and a 0.6-percent decline in productivity. Unit labor costs increased 2.8 percent over the last four quarters.