U.S. Productivity Growth Is The Highest in 4 Years, Real Compensation Up by 2.7%
According to the BLS's report today, productivity in the nonfarm business sector grew by 4.9% in the third quarter, the largest gain in four years - since the third quarter of 2003. The 4.9% productivity growth was well above Wall Street's expectation of 3.4% growth, was also more than twice the average productivity growth over the last 25 years of 2.07% (see chart above, click to enlarge).
The BLS also reported that real compensation, adjusted for inflation, rose 2.7% in the third quarter, well above the average of 2.08% over the last ten years.