Hours worked in the second quarter of 2023 declined as output grew. The net result is a surge in stated productivity. 
Please consider Productivity and Costs for the Second Quarter 2023, Preliminary.
- Nonfarm business sector labor productivity increased 3.7 percent in the second quarter of 2023 as output increased 2.4 percent and hours worked decreased 1.3 percent.
- The decline in hours worked is the first decline since the second quarter of 2020 and was the result of a 1.3-percent decline in average weekly hours; employment was unchanged.
- From the same quarter a year ago, nonfarm business sector labor productivity increased 1.3 percent, reflecting a 2.6-percent increase in output and a 1.2-percent increase in hours worked;
- This is the first increase in the four-quarter productivity measure since the fourth quarter of 2021.
Unit Labor Costs
- Unit labor costs in the nonfarm business sector increased 1.6 percent in the second quarter of 2023, reflecting a 5.5-percent increase in hourly compensation and a 3.7-percent increase in productivity.
- Unit labor costs increased 2.4 percent over the last four quarters.
- BLS calculates unit labor costs as the ratio of hourly compensation to labor productivity. Increases in hourly compensation tend to increase unit labor costs and increases in productivity tend to reduce them.
- Real hourly compensation, which takes into account consumer prices, increased 2.7 percent in the second quarter of 2023, and declined 0.3 percent over the last four quarters.
- Labor productivity, or output per hour, is calculated by dividing an index of real output by an index of hours worked by all workers, including employees, proprietors, and unpaid family workers.
Labor Productivity vs Costs Long Term
Despite the welcome jump in productivity, hourly earnings are still on a rampage vs productivity.
Index of Hours Worked Since 1947
In 100 percent of recessions since 1947, the index of hours worked has turned down.
Index of Hours Worked Since 1999
“The decline in hours worked is the first decline since the second quarter of 2020 and was the result of a 1.3-percent decline in average weekly hours; employment was unchanged. “
What Do Federal Tax Receipts and Total Receipts Suggest About Recession?
In case you missed it, please see What Do Federal Tax Receipts and Total Receipts Suggest About Recession?
The above chart is through 2023 Q1. Tax data for the second quarter is not yet available. See the above link for details.
Hmmm. So productivity depends on the cost of living deflator applied?
I’m guessing the rise in labor costs have to do with minimum wage increases. This is the last feed I follow anymore. It’s just too stupid to bother with anymore. But, if it’s the case, I thought you slaves would like to learn that the progressives brought forth the minimum wage because they knew, just like everyone else, that it would create a dependent class unable to find work. Some of you may say the progressives are evil, and while I would agree, no other parry has really fought it. Minimum wage was the cornerstone of the welfare state. Which all parties insist on increasing. And to think people are stupid enough to vote for any of these clowns! What a bunch of idiots! You definitely got the government you deserve. What a joke.
Toot toot!
Always good to see the village idiot here. All your comments are so insightful! Almost as if you know you have nothing worth sharing.
Hear that? That’s the kookwhistle!
Toot toot!
I’m just wondering how you can possibly think that anything you write matters? Just ignorant oneliners. At least, if you have some pride, include something lucid and at least half way intelligent. Guess that’s just asking too much from a slave. And that marks the last remark I make to you. Mostly because I won’t be reading any more of your your ignorance. There’s no point, since you’ve established there is no point in your existence.
Toot toot!
democracy works for past 2500 years. war mongering big government plebes vote themselves in pax dumbfuckistan for past 60 years. R and D. same dumbfuckery. democracy works. perhaps in a few decades we’ll smarten up as our nasty empire croaks
I can’t think of a single democracy that has ever worked. We have a constitutional Republic, not that anyone ever pays attention to the constitution.
Nah, wages and productivity are going up because of Bidenomics.
The concept of a minimum wage is based upon the belief that many workers have at least a minimum value to society.
Apparently the workers that aren’t included in the above have no value.
I love the like buttons. Knowing that the slaves are triggered, though mostly too spineless to speak up, gives me a good laugh.
Some more hilarity for my pleasure. Whenever I pass by a tv that has the 80 something year old grifter with dementia on it, I can’t help but laugh. All of the slaves will get so upset about whatever drivel he’s rambling on about and then run around in a panic because what can they do? It’s an 80 something year old grifter with dementia! I must do as he commands! So hilarious! I don’t really care what the old coot says; he’s a thousand miles away from me, and the secret service probably likes people like me keeping my distance from him. Despite all the helpless retard slaves bending over for them out of fear, it’ll come down to a single lawdawg and we have a pretty good armistice going on now for the past 5 years or so. So why would I care what he’s babbling on about? And yet, you slaves get so upset about whatever he says. The hits just keep coming!
Oil is where it was 2 years ago in inflation diluted dollars. In inflation diluted dollars oil is really at $71.25 a barrel in August 2021 dollars, and $67 in August 2020 dollars. Most of oil’s gains have been early since the 2020 flash crash. The last two years have been flat. It does not take a rocket scientist to prosper in Uranium companies after the Fukushima flash crash, and also the Boeing Max flash crash. I avoided prospering from the oil flash crash for spiritual reasons, but did ok on the others.
People think they are getting over on markets, but inflation is getting over on them.
Was talking with an enlightened young man today about the concept of not purchasing items that are boring and uninspiring to produce. They had some garden gnomes on their shelf that must have been torturous to produce. What kind of f**ck would have people producing garden gnomes.
The only good things about immigrants is that they; through discovery learn about the 4 branches of government. Legislative, Executive, Judicial, and Sovereign or Individual. Me no speaka Inglish forces them to explain exactly what the F they mean.
Labor is winning
Too bad you missed out on the run up in oil companies. Darn religion.
Like CNQ. From $12 to $80 (C$).
“Breakeven costs for Canadian oil sands sector producing assets have fallen from $59.30 US Brent per barrel in 2015 to $33.97 US Brent per barrel in 2022 a decline of $25.33 US Brent per barrel, or nearly 43 per cent.”
CNQs breakeven covers maintenance capital and their 4.5% dividend as well.
“ We have an industry leading WTI break-even in the mid- US$30s per barrel, which covers base maintenance capital requirements and dividend commitments”
Eliminate the dividend and breakeven drops to $28.
thanks papa for your insights and your effort to give us investment ideas. mucho gracias papa. keep it up por favor. i also like the like buttons.
You’re welcome. Just trying to share the wealth. Even though some here find it more important to whine and complain and wait for the end of the world.
Imminent Armageddon absolves us of responsibility to better our predicament. It’s like a warm, itchy blanket.
I just think you’re hilarious! And I’m celebrating, not whining. Once the world culls a few hundred million one dimensional cardboard cutouts like you out of the gene pool, things will start to look up. Keep ignoring history, it makes you a lot funnier to me.
@Christoball –
There is no “Sovereign or Individual” branch of Government.
The fourth branch of Government is the Bureaucratic branch.
It’s members do not stand for elections and can be almost as permanent as the members of the SCOTUS.
Sovereign and Individuals started disappearing in the United States sometime in the late 1700’s and early 1800’s. Gone by 1865.
Sovereignty and Freedom are states of mind. Use it or loose it.