Nonfarm Productivity
a.k.a. Labor productivity
A quarterly US measure of how much output American workers produce per hour outside farming.
Nonfarm productivity measures output per hour worked in the US business sector, leaving out farms. If workers produce more in the same time, productivity rises, and companies can pay higher wages without needing to raise prices.
It is released with a companion number, unit labour costs, and together they help the Fed judge whether wage growth is healthy or inflationary. Rising wages plus rising productivity is fine; rising wages with flat productivity is how inflation gets baked in.
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