The preliminary data from the U.S. Labour Department showed on Friday that nonfarm business sector labor productivity in the United States surged 7.3 percent q-o-q in the second quarter of 2020, as output declined 38.9 percent q-o-q and hours worked fell 43.0 percent q-o-q (seasonally adjusted). This was the

largest quarterly increase since the second quarter of 2009.

This was well above economists’ forecast for a 1.5 percent q-o-q advance after a revised 0.3 percent q-o-q drop in the first quarter (originally a 0.9 percent q-o-q decline).

In y-o-y terms, the labor productivity rose 2.2 percent in the second quarter, reflecting an 11.8-percent decline in output and a 13.7-percent fall in hours worked.

Meanwhile, unit labor costs in the nonfarm business sector in the second quarter jumped 12.2 percent q-o-q compared to a revised 9.8 percent q-o-q climb in the prior quarter (originally a 5.1 percent q-o-q gain). This was the largest increase in this measure since the first quarter of 2014.

Economists had forecast a 6.2 percent surge in second-quarter unit labor costs.

Unit labor costs quarterly increase reflected a 20.4-percent q-o-q surge in hourly compensation and a 7.3-percent advance in productivity.

Compared to the corresponding period of 2019, unit labor costs rose 5.7 percent.