The preliminary data from the U.S. Labour Department showed on Thursday that nonfarm business sector labor productivity in the United States rose 4.9 percent q-o-q in the third quarter of 2020, as output surged 43.5 percent q-o-q and hours worked jumped 36.8 percent q-o-q (seasonally adjusted). This was below economists’ forecast for a 5.6 percent q-o-q advance after a revised 10.6 percent q-o-q surge in the second quarter (originally a 10.1 percent q-o-q climb).

Meanwhile, unit labor costs in the nonfarm business sector in the third quarter fell 8.9 percent q-o-q compared to a revised 8.5 percent q-o-q jump in the prior quarter (originally a 9.0 percent q-o-q gain). This was the biggest decrease in this measure since the first quarter of 2009. Economists had forecast a 11.5 percent tumble in third-quarter unit labor costs.

Unit labor costs quarterly decline reflected a 4.4-percent q-o-q drop in hourly compensation and a 4.9-percent advance in productivity.