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Steepest drop in worker productivity since 1947 drives up labor costs

Factory jobs
Posted at 1:59 PM, May 05, 2022
and last updated 2022-05-05 14:12:35-04

Worker productivity fell at its fastest pace in nearly 75 years, according to new data from the Bureau of Labor Statistics.

The data is from the first quarter of 2022.

Productivity or hourly output per worker, fell 7.5% last quarter from the previous quarter.

It’s the steepest drop since 1947.

The Labor Department also reported an 11.6% increase in labor costs, which measures how much businesses pay their workers.

It’s the steepest jump for labor costs since the summer of 2020.

The numbers reveal how competition for workers has pushed up wages.

They also reflect ongoing supply-chain shortages.