Productivity-Pay Wedge

Output per hour divided by inflation-adjusted hourly pay, both indexed to 2017 = 100

Photo of Ross Kilburn
Data from

Where the Productivity-Pay Wedge stands now

The Productivity-Pay Wedge was 109.9 in the second quarter of 2026, the highest in data back to 1947. It has been higher than the quarter before for five quarters in a row.

How the Productivity-Pay Wedge has moved since 1947

Productivity-Pay Wedge: up since 2021, the highest in data back to 1947

Nonfarm business output per hour divided by real hourly compensation, both indexed to 2017 = 100: 109.9 in the second quarter of 2026, up from 107.4 a year earlier. Quarterly, 1947–2026.

40 60 80 100 120 19472026 low · Q4 1960 · 61.5 109.9 Q2 2026 40 80 120 19472026 61.5 109.9
Source: Computed (U.S. Bureau of Labor Statistics OPHNFB vs COMPRNFB data retrieved via FRED) · Q1 1947 – Q2 2026 American Default Research · americandefault.org/indicators/the-wedge/
Download data (CSV)

See every quarterly figure ↓

What the Productivity-Pay Wedge measures

A higher index value is worse for households.

Productivity-Pay Wedge by quarter, 1947 to 2026

The newest 300 quarters, newest first; the CSV has every quarter since 1947. The change compares each quarter with the same quarter a year earlier.

Download the data: CSV · JSON

Quarter Index value Change from a year earlier
Q2 2026 109.9 +2.5
Q1 2026 108.6 +2.5
Q4 2025 108 +1
Q3 2025 107.9 +0.9
Q2 2025 107.4 +0.5
Q1 2025 106.1 −0.4
Q4 2024 107 +0.1
Q3 2024 107 +0.5
Q2 2024 106.9 +1
Q1 2024 106.5 +0.7
Q4 2023 106.9 +1.5
Q3 2023 106.5 +2.6
Q2 2023 105.9 +1.6
Q1 2023 105.8 +3.1
Q4 2022 105.4 +3.2
Q3 2022 103.9 +3
Q2 2022 104.3 +3
Q1 2022 102.7 +1.9
Q4 2021 102.2 +3.1
Q3 2021 100.9 −0.8
Q2 2021 101.3 +3.8
Q1 2021 100.8 +1.5
Q4 2020 99.1 −2.6
Q3 2020 101.7 −0.1
Q2 2020 97.5 −2.9
Q1 2020 99.3 +0.3
Q4 2019 101.7 +1.4
Q3 2019 101.8 +1.4
Q2 2019 100.4 −0.2
Q1 2019 99 −1.6
Q4 2018 100.3 +0.3
Q3 2018 100.4 +0.6
Q2 2018 100.6 +0.8
Q1 2018 100.6 +0.3
Q4 2017 100 −0.4
Q3 2017 99.8 −0.4
Q2 2017 99.8 0
Q1 2017 100.3 +1
Q4 2016 100.4 +1.4
Q3 2016 100.2 +0.8
Q2 2016 99.8 +0.4
Q1 2016 99.3 +0.2
Q4 2015 99 −1.3
Q3 2015 99.4 −2.6
Q2 2015 99.4 −2
Q1 2015 99.1 −0.5
Q4 2014 100.3 −1.4
Q3 2014 102 +0.8
Q2 2014 101.4 +1.7
Q1 2014 99.6 −1.1
Q4 2013 101.7 +3.4
Q3 2013 101.2 +0.7
Q2 2013 99.7 −0.7
Q1 2013 100.7 +0.6
Q4 2012 98.3 −3.1
Q3 2012 100.5 +1.5
Q2 2012 100.4 +1.1
Q1 2012 100.1 +2.8
Q4 2011 101.4 +2.6
Q3 2011 99 +1
Q2 2011 99.3 +1.6
Q1 2011 97.3 −1.3
Q4 2010 98.8 +1.4
Q3 2010 98 +2.2
Q2 2010 97.7 +3.5
Q1 2010 98.6 +4.6
Q4 2009 97.4 +6.3
Q3 2009 95.8 +0.8
Q2 2009 94.2 −0.1
Q1 2009 94 +1.9
Q4 2008 91.1 −1.5
Q3 2008 95 +3.1
Q2 2008 94.3 +3.4
Q1 2008 92.1 +2.5
Q4 2007 92.6 +2.2
Q3 2007 91.9 +0.3
Q2 2007 90.9 −0.3
Q1 2007 89.6 −1
Q4 2006 90.4 −0.8
Q3 2006 91.6 +0.7
Q2 2006 91.2 +1.1
Q1 2006 90.6 +0.4
Q4 2005 91.2 +1.9
Q3 2005 90.9 +2.6
Q2 2005 90.1 +1.1
Q1 2005 90.2 +1.2
Q4 2004 89.3 +1
Q3 2004 88.3 −0.1
Q2 2004 89 +1.8
Q1 2004 89 +1.3
Q4 2003 88.3 +1.8
Q3 2003 88.4 +2.1
Q2 2003 87.2 +1.6
Q1 2003 87.7 +2.2
Q4 2002 86.5 +2.6
Q3 2002 86.3 +2.6
Q2 2002 85.6 +2.5
Q1 2002 85.5 +4.1
Q4 2001 83.9 +1
Q3 2001 83.7 +1.8
Q2 2001 83.1 +0.2
Q1 2001 81.4 +0.6
Q4 2000 82.9 −0.2
Q3 2000 81.9 −1.1
Q2 2000 82.9 +0.6
Q1 2000 80.8 −0.9
Q4 1999 83.1 +1.4
Q3 1999 83 +1.8
Q2 1999 82.3 +1.2
Q1 1999 81.7 +0.2
Q4 1998 81.7 −0.3
Q3 1998 81.2 −1.4
Q2 1998 81.1 −1.3
Q1 1998 81.5 −0.3
Q4 1997 82 −0.4
Q3 1997 82.6 +0.4
Q2 1997 82.4 +0.3
Q1 1997 81.8 +0.5
Q4 1996 82.4 +1.3
Q3 1996 82.2 +1.3
Q2 1996 82.1 +1.1
Q1 1996 81.3 +0.6
Q4 1995 81.1 +0.5
Q3 1995 80.9 +0.9
Q2 1995 81 +1.2
Q1 1995 80.7 +0.7
Q4 1994 80.6 +1.5
Q3 1994 80 +1.2
Q2 1994 79.8 +1.6
Q1 1994 80 +1.4
Q4 1993 79.1 +0.8
Q3 1993 78.8 +1.1
Q2 1993 78.2 +0.8
Q1 1993 78.6 +1.6
Q4 1992 78.3 +1.3
Q3 1992 77.7 +0.6
Q2 1992 77.4 +0.5
Q1 1992 77 +0.2
Q4 1991 77 +0.4
Q3 1991 77.1 +0.3
Q2 1991 76.9 +0.6
Q1 1991 76.8 +0.3
Q4 1990 76.6 +0.5
Q3 1990 76.8 +0.3
Q2 1990 76.3 0
Q1 1990 76.5 +1.3
Q4 1989 76.1 +1.6
Q3 1989 76.5 +2.2
Q2 1989 76.3 +2.1
Q1 1989 75.2 +1
Q4 1988 74.5 −0.2
Q3 1988 74.3 +0.1
Q2 1988 74.2 0
Q1 1988 74.2 +0.7
Q4 1987 74.7 +1.4
Q3 1987 74.2 +0.2
Q2 1987 74.2 0
Q1 1987 73.5 −1.4
Q4 1986 73.3 −1.4
Q3 1986 74 −1.1
Q2 1986 74.2 −0.6
Q1 1986 74.9 +0.3
Q4 1985 74.7 +0.1
Q3 1985 75.1 +0.6
Q2 1985 74.8 +0.1
Q1 1985 74.6 +0.2
Q4 1984 74.6 +0.7
Q3 1984 74.5 +0.9
Q2 1984 74.7 +1.5
Q1 1984 74.4 +3
Q4 1983 73.9 +3.1
Q3 1983 73.6 +3.2
Q2 1983 73.2 +3.1
Q1 1983 71.4 +1.5
Q4 1982 70.8 −0.5
Q3 1982 70.4 −1.6
Q2 1982 70.1 −1.3
Q1 1982 69.9 −2.4
Q4 1981 71.3 +0.3
Q3 1981 72 +1.5
Q2 1981 71.4 +1.1
Q1 1981 72.3 +1.1
Q4 1980 71 +0.4
Q3 1980 70.5 −0.2
Q2 1980 70.3 −0.2
Q1 1980 71.2 +0.9
Q4 1979 70.6 −0.6
Q3 1979 70.7 −0.4
Q2 1979 70.5 −0.6
Q1 1979 70.3 +0.9
Q4 1978 71.2 +1.1
Q3 1978 71.1 −0.1
Q2 1978 71.1 +0.3
Q1 1978 69.4 −1.4
Q4 1977 70.1 −0.2
Q3 1977 71.2 +0.6
Q2 1977 70.8 0
Q1 1977 70.8 0
Q4 1976 70.3 0
Q3 1976 70.6 +0.5
Q2 1976 70.8 +1.7
Q1 1976 70.8 +2.2
Q4 1975 70.3 +1.6
Q3 1975 70.1 +2.2
Q2 1975 69.1 +0.4
Q1 1975 68.6 −0.2
Q4 1974 68.7 +0.2
Q3 1974 67.9 −0.7
Q2 1974 68.7 −0.4
Q1 1974 68.8 +0.2
Q4 1973 68.5 +0.7
Q3 1973 68.6 +0.8
Q2 1973 69.1 +1.4
Q1 1973 68.6 +1.8
Q4 1972 67.8 +0.8
Q3 1972 67.8 +0.2
Q2 1972 67.7 +0.5
Q1 1972 66.8 −0.6
Q4 1971 67 +0.8
Q3 1971 67.6 +1.1
Q2 1971 67.2 +1.3
Q1 1971 67.4 +2.4
Q4 1970 66.2 +1.2
Q3 1970 66.5 +0.9
Q2 1970 65.9 +0.2
Q1 1970 65 −1.3
Q4 1969 65 −0.9
Q3 1969 65.6 −0.9
Q2 1969 65.7 −1
Q1 1969 66.3 −0.2
Q4 1968 65.9 −0.2
Q3 1968 66.5 +0.4
Q2 1968 66.7 +0.7
Q1 1968 66.5 +0.1
Q4 1967 66.1 −0.5
Q3 1967 66.1 −0.5
Q2 1967 66 −0.7
Q1 1967 66.4 −1.2
Q4 1966 66.6 −0.7
Q3 1966 66.6 −0.1
Q2 1966 66.7 +0.8
Q1 1966 67.6 +2
Q4 1965 67.3 +2.5
Q3 1965 66.7 +1.1
Q2 1965 65.9 +0.3
Q1 1965 65.6 −0.3
Q4 1964 64.8 −0.2
Q3 1964 65.6 0
Q2 1964 65.6 +1.3
Q1 1964 65.9 +1.9
Q4 1963 65 +0.7
Q3 1963 65.6 +1.4
Q2 1963 64.3 +0.9
Q1 1963 64 +0.1
Q4 1962 64.3 +0.7
Q3 1962 64.2 +0.8
Q2 1962 63.4 +0.8
Q1 1962 63.9 +2
Q4 1961 63.6 +2.1
Q3 1961 63.4 +1.2
Q2 1961 62.6 +0.5
Q1 1961 61.9 −1.2
Q4 1960 61.5 −1.5
Q3 1960 62.2 −1.2
Q2 1960 62.1 −1.2
Q1 1960 63.1 −0.1
Q4 1959 63 −0.6
Q3 1959 63.4 +0.7
Q2 1959 63.3 +0.3
Q1 1959 63.2 +1.2
Q4 1958 63.6 +1.5
Q3 1958 62.7 +0.3
Q2 1958 63 +1.2
Q1 1958 62 −0.2
Q4 1957 62.1 +0.3
Q3 1957 62.4 +0.7
Q2 1957 61.8 −0.2
Q1 1957 62.2 −0.3
Q4 1956 61.8 −2.4
Q3 1956 61.7 −3.1
Q2 1956 62 −3.7
Q1 1956 62.5 −3.6
Q4 1955 64.2 −1
Q3 1955 64.8 −0.5
Q2 1955 65.7 +0.9
Q1 1955 66.1 +1.6
Q4 1954 65.2 +0.4
Q3 1954 65.3 −0.2
Q2 1954 64.8 −0.9
Q1 1954 64.5 −1.5
Q4 1953 64.8 −1.6
Q3 1953 65.5 −1.1
Q2 1953 65.7 −1.6
Q1 1953 66 −1.8
Q4 1952 66.4 −1.5
Q3 1952 66.6 −1.3
Q2 1952 67.3 +0.1
Q1 1952 67.8 −0.5
Q4 1951 67.9 +0.8
Q3 1951 67.9 +0.6

Quarterly · Computed (U.S. Bureau of Labor Statistics OPHNFB vs COMPRNFB data retrieved via FRED)

Measures related to the Productivity-Pay Wedge

Measure Latest
Business AI Adoption Rate 10.00% · Sep 21, 2025
METR 50% Task-Completion Horizon 17.4 hours · April 2026
Involuntary Part-Time Share of Employment 2.76% · September 2026
Long-Term Unemployed Share (27+ Weeks) 27.10% · September 2026

Counties with the highest labor scores

There's no county figure for this measure, so this list uses the labor part of our County Distress Index.

Rank County Score (0–100)
1 Apache County, AZ 99.2
2 Mingo County, WV 98.7
3 Navajo County, AZ 97.3
4 Luna County, NM 97.2
5 McKinley County, NM 96.8
6 Lake County, CA 96.8
7 Clare County, MI 96.6
8 Harlan County, KY 96.2
9 Wyoming County, WV 96.2
10 Pike County, KY 96.1

All 3,144 counties →

Questions about the Productivity-Pay Wedge

What does a wedge reading above 100 mean?

The latest reading, for the second quarter of 2026, is 109.9. That is higher than a year earlier, when it was 107.4. Above 100, BLS's output-per-hour index stands above its real hourly compensation index, both counted from 2017. It does not mean workers are paid that percent less than they produce.

Is this the same as the Economic Policy Institute's productivity-pay gap?

No. EPI compares total-economy net productivity with the pay of production and nonsupervisory workers, adjusting both with one price index. This wedge uses BLS's nonfarm business output per hour and the hourly compensation of everyone in that sector, adjusted with consumer prices.

Does it measure wages?

Not only wages. Compensation includes wages and salaries plus benefits, employer contributions to benefit plans and payroll taxes, and it covers managers and the self-employed as well as rank-and-file workers.

Where does this data come from?

Both indexes come from BLS's quarterly Productivity and Costs release, built from U.S. Bureau of Economic Analysis output data and BLS hours and pay data. American Default Research divides one by the other. BLS publishes a preliminary estimate about five weeks after each quarter and revises it later.

Cite this Productivity-Pay Wedge: 109.9, Q2 2026 · American Default Research, from U.S. Bureau of Labor Statistics · americandefault.org/indicators/the-wedge/

Sources and method for the Productivity-Pay Wedge

  • Computed (U.S. Bureau of Labor Statistics OPHNFB vs COMPRNFB data retrieved via FRED) We use the quarterly figures as published, from the first quarter of 1947 through the second quarter of 2026, with no adjustment of our own. U.S. Bureau of Labor Statistics’s report

We write with assistance from AI tools. Figures come from the data and sources named on this page.