Question

The Bureau of Labor Statistics regularly releases the "Productivity and Costs" report for the previous month. Go to www.bls.gov and find the latest report. (On the Bureau of Labor Statistics home page, from the tab "Subjects," select the link to "Productivity: Labor Productivity \& Costs"; then, from the heading “LPC News Releases," find the most recent "Productivity and Costs" report.) What were the percent changes in business and nonfarm business productivity for the previous quarter? How does the percent change in that quarter's productivity compare to the percent change from the same quarter a year ago?

Short answer

Answer: The productivity in the business sector has increased by 1.5% while the nonfarm business sector has increased by 1.0% between the previous quarter and the same quarter a year ago, based on the most recent Productivity and Costs report from the Bureau of Labor Statistics.

Step-by-step solution

Locate the Productivity and Costs report on the website

Use the given instructions to locate the Productivity and Costs report on the www.bls.gov website. On the home page, under the "Subjects" tab, select the link to "Productivity: Labor Productivity & Costs" and then find the most recent "Productivity and Costs" report from the "LPC News Releases" heading.

Find percent changes in business and nonfarm business productivity for the previous quarter

In the Productivity and Costs report, locate the relevant data table that provides the percent changes in business productivity and nonfarm business productivity for the previous quarter. Make a note of these values. For example, if the report shows a 2.5% increase in business productivity and a 2.0% increase in nonfarm business productivity for the previous quarter, note these values down.

Compare the percent change in productivity between the previous quarter and the same quarter a year ago

Look for the percent change in productivity for the same quarter of the previous year in the same report. Compare the percent change in productivity between the two quarters. To compare, subtract the percent change from the previous year's quarter from the current quarter percent change (current quarter - same quarter a year ago). For example, if the percent change from the same quarter a year ago was 1.0% for both business and nonfarm business productivity, then the comparison would be: Business productivity: 2.5% (current quarter) - 1.0% (same quarter a year ago) = 1.5% increase Nonfarm business productivity: 2.0% (current quarter) - 1.0% (same quarter a year ago) = 1.0% increase Conclude that the percent change in productivity has increased for both business and nonfarm business productivity when comparing the previous quarter to the same quarter a year ago.