The revised data from the U.S. Labour Department showed on Tuesday that nonfarm business sector labor productivity in the United States increased 4.6 percent q-o-q in the third quarter of 2020, as output surged 43.4 percent q-o-q and hours worked climbed 37.1 percent q-o-q (seasonally adjusted). That was slightly worse that the initial estimate of a gain of 4.9 percent q-o-q. In the second quarter, labor productivity surged 10.6 percent q-o-q.

In y-o-y terms, the labor productivity rose 4.0 percent, reflecting a 3.4-percent fall in output and a 7.1-percent drop in hours worked.

Meanwhile, unit labor costs in the nonfarm business sector in the third quarter fell 6.6 percent q-o-q compared to an initial estimate of an 8.9 percent q-o-q plunge and a revised 12.3 percent q-o-q surge in the prior quarter (originally a 9.0 percent q-o-q advance).

Unit labor costs quarterly decrease reflected a 2.3-percent q-o-q drop in compensation per hour and a 4.6-percent q-o-q rise in productivity.

Compared to the corresponding period of 2019, unit labor costs rose 4.0 percent.