Strong Growth In Productivity Posted by U.S. --- Annual Rate in 4th Quarter Revised Upward to 2.9% For Non-Farm Business
WASHINGTON -- Non-farm productivity grew at a seasonally adjusted 2.9% annual rate in the fourth quarter of 1984, exceeding the 1.7% rate estimated initially, the Labor Department said.</br></br>But despite the strong fourth-quarter growth, the productivity gain for all of 1984 was 2.7%, lower than the 3.1% growth rate the department first reported. The department said it erred in its preliminary report by underestimating the number of hours worked in one industrial sector.</br></br>While the revised 2.7% growth rate was lower than the robust 3.5% record rate in 1983, it far exceeded the average annual growth rate of 0.8% in the non-farm sector that prevailed from 1973 to 1983.</br></br>During 1984, output in the non-farm sector grew a revised 8.6%, the biggest jump since 1950. Hours worked rose a revised 5.7%, the largest gain since the department started recording productivity in 1947. Unit labor costs grew a modest 1.4% in the year, the same as in 1983, largely due to modest compensation gains.</br></br>In January, the department had said its estimate of 3.1% non-farm productivity growth rate reflected an 8.5% increase in output and a 5.2% growth rate in hours worked.