Labor Productivity Rises

By Staff Writer May 27, 2022 166

Labor productivity in the private nonfarm sector rose in 39 states and the District of Columbia in 2021, the U.S. Bureau of Labor Statistics reported. Output increased in all 50 states and the District of Columbia in 2021, following a year of decline for all areas. Hours worked increased in all 50 states but declined in the District of Columbia. Washington and New Hampshire experienced the highest growth in labor productivity of 6.4% and 5.2%, respectively.

  • Two states saw productivity growth over 5.0%: Washington (6.4%) and New Hampshire (5.2%).
  • Output growth exceeded 9.0% in three states: California (9.8%), Tennessee (9.8%), and New Hampshire (9.3%).
  • Nevada and Florida saw the highest growth in hours worked (9.8% and 9.1%, respectively).
  • Two states, Arkansas and Oklahoma, saw no change to labor productivity due to gains in output that matched gains in hours worked.
  • Labor productivity declined in nine states (Alaska, Wyoming, Nevada, Hawaii, Rhode Island, Delaware, Florida, Georgia, and New Jersey) due to a more rapid increase in hours worked than in output.

Each state’s annual contribution to national productivity growth in 2021 is calculated by multiplying the state’s productivity growth rate by its average share of total current dollar national output. The economic size of each state influences its contribution to national and regional estimates. For 2021, California had the largest contribution to national growth. The state’s 4.2-percent growth in labor productivity in 2021 contributed nearly one third of the 2.1-percent growth of the nation.

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Last modified on Sunday, 05 June 2022 11:53