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In 2022, labor productivity declines were observed across the manufacturing sector | SeventyFour via Canva

Report: Widespread Declines in Manufacturing Labor Productivity in 2022, Mining Industries Also Affected

In 2022, labor productivity declines were observed across the manufacturing sector, with 66 out of 86 four-digit NAICS industries experiencing a drop, according to the U.S. Bureau of Labor Statistics. The motor vehicle industry saw an 11.7% decrease, leading the declines in the durable manufacturing sector. Meanwhile, the cut and sew apparel industry experienced a 16.9% decline, leading the nondurable manufacturing sector. Additionally, productivity fell in three out of five mining industries, with the coal mining industry witnessing the largest decline at 12.2%.

Despite these productivity declines, hours worked increased in 79 of the 91 manufacturing and mining industries. Forty-one industries saw both output and hours worked increase. In the manufacturing sector, all 21 three-digit NAICS industries experienced rising unit labor costs, with ten witnessing growth rates exceeding 10%. Moreover, 82 out of 86 four-digit NAICS manufacturing industries experienced unit labor cost increases. In the mining sector, all three three-digit NAICS industries saw unit labor cost increases, with the largest growth occurring in oil and gas extraction at 10.3%.

Between 2019 and 2022, productivity increased in half of the four-digit NAICS manufacturing industries. The audio and video equipment industry achieved the highest productivity growth at 12.4%, while also witnessing the largest unit labor costs decline at 15.4% over the same period.

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