Annual nonfarm business
sector labor productivity
measures the growth of labor
efficiency in producing the
economy's goods and services
from the previous year. Unit
labor costs reflect the labor
costs of producing each unit
of output. Both are followed
as indicators of future
inflationary trends because
they indicate pressure for
higher wages and faster
economic growth. Labor
productivity is measured by
calculating the ratio of the
output of goods and services
to the labor hours devoted to
the production of that output.
Source: Bureau of Labor Statistics
Measured: Annually
Last Updated: 4/24/2014
