The Bureau of Labor Statistics (BLS) measures labor productivity (output per hour worked) nationally. Last week, for the first time, it released experimental data on labor productivity at the state level, from 2007 to 2017.

Over the current business cycle (2007–17), nonfarm business sector labor productivity grew an average of 1.3 percent annually. However, these new measures show that productivity growth rates varied substantially across states. For example, average annual productivity growth ranged from 3.1 percent in North Dakota to −0.7 percent in Louisiana.

The paper considers three time periods: the current business cycle (2007–2017), the Great Recession (2007–2009), and post-recession (2009–2017). Washington’s average annual labor productivity growth was 1.7 percent for all three periods. This ranked Washington fourth highest in the country for the 2007–2017 period (behind North Dakota, California, and Oregon) and second highest for the 2009–2017 period (behind North Dakota).

(Washington’s productivity growth ranked 30^th during the recession. As BLS notes, “During the recession, labor productivity grew in 46 states . . . . Productivity gains were mostly the result of hours falling faster than output.”)

BLS also estimated the contribution of a state’s productivity to national productivity:

Of all the states, California with 1.7-percent growth made the largest contribution (0.22 percent) to national productivity growth (1.0 percent), followed by Texas (0.10 percent) and New York (0.08 percent). North Dakota, despite having the largest productivity growth rate, only ranks 28th in terms of its contribution to national productivity growth.

Washington’s contribution to national productivity was 0.04 percent, the fifth highest.

Finally, BLS looked at “the impact of industrial composition on labor productivity growth rates.” It notes, “At the national level, the [information and communications technology (ICT)]-producing sector has been a primary driver of productivity growth for some time.” For the states, from 2009–2017, BLS found “a positive correlation between labor productivity growth and the average ICT sector share of output. . . . 8 of the top 10 states in terms of their ICT-producing sector share saw labor productivity growth exceed the state average (0.6 percent) over the period.” Washington’s ICT share of private nonfarm output was 13.0 percent, the highest in the country.