|Release Date:||Released every quarter before the 10th of a new month|
|Release Time:||At 8.30am EST|
|Released By:||The Bureau of Labor Statistics|
Productivity is an indicator of production efficiency which measures output per unit of input in the production process. Inputs of production refer to capital and labor and capital, while output is measured in revenues and business inventories. Productivity may be measured on an industry to industry basis (looking at growth in wages, labor or technological advancement), or measured collectively across the whole economy.
The most common measure of productivity is the ratio of GDP to total hours worked in the economy during a specified time frame. It is referred to as the Non-farm Productivity report. This measures the annualized change in labor efficiency when producing goods and services in an economy. The agricultural sector is excluded from this calculation.
Time of Release
The Non-Farm Productivity q/q report is released by the Bureau of Labor Statistics every quarter before the 10th of a new month at 8.30am EST. The data is released on this webpage and also on independent news feeds from Bloomberg and Thomas Reuters. There are 2 versions of this report which released a month apart from each other: Preliminary and Revised. The Preliminary release comes out first and this has a greater market impact. It is released 35 days after the quarter ends and is reported in an annualized format.
Interpreting the Data
Productivity is inversely linked to wage inflation. Lower labor productivity leads to higher wages. When businesses incur higher wage bills, these costs are passed on to the consumer leading to consumer inflation. This in turn will affect consumer spending and further GDP growth of an economy.
Capital and labor are both scarce resources, so companies must enhance productivity through technology advances such as use of computers, the internet, improving the supply chain and logistics, improving the skill levels within the workforce and automation.
Increasing national productivity can increase living standards because more real income improves people’s ability to purchase goods and services, and purchase the good things of life. Growth in Productivity also helps businesses to become more profitable.