Transmission of material in this release is embargoed until USDL 23-0150
8:30 a.m. (ET) Thursday, February 2, 2023
Technical information: (202) 691-5606 • Productivity@bls.gov • www.bls.gov/productivity
Media contact: (202) 691-5902 • PressOffice@bls.gov
PRODUCTIVITY AND COSTS
Fourth Quarter and Annual Averages 2022, Preliminary
Nonfarm business sector labor productivity increased 3.0 percent in the fourth quarter of 2022, the
U.S. Bureau of Labor Statistics reported today, as output increased 3.5 percent and hours worked
increased 0.5 percent. (All quarterly percent changes in this release are seasonally adjusted annual rates.)
From the same quarter a year ago, nonfarm business sector labor productivity decreased 1.5 percent,
reflecting a 0.8-percent increase in output and a 2.3-percent increase in hours worked. (See table A1.)
Annual average productivity decreased 1.3 percent from 2021 to 2022. This is the largest annual decline
in the measure since 1974, when productivity decreased 1.7 percent. (See table C1.)
Unit labor costs in the nonfarm business sector increased 1.1 percent in the fourth quarter of 2022,
reflecting a 4.1-percent increase in hourly compensation and a 3.0-percent increase in productivity. Unit
labor costs increased 4.5 percent over the last four quarters. (See tables A1 and 2.)
BLS calculates unit labor costs as the ratio of hourly compensation to labor productivity. Increases in
hourly compensation tend to increase unit labor costs and increases in productivity tend to reduce them.
Real hourly compensation, which takes into account consumer prices, increased 1.0 percent in the fourth
quarter, and declined 3.8 percent over the last four quarters.
Labor productivity, or output per hour, is calculated by dividing an index of real output by an index of
hours worked by all persons, including employees, proprietors, and unpaid family workers. The fourth
quarter of 2022 is the second consecutive quarter in which both output and labor productivity increased,
following decreases in the first two quarters of the year. Hours worked grew in all four quarters of 2022,
but slower growth in the fourth quarter contributed to the acceleration in productivity growth in that
quarter. The labor productivity index has grown at an annualized rate of 1.7 percent since the last
business cycle peak in the fourth quarter of 2019--the last quarter before the COVID-19 pandemic and
ensuing recession--reflecting a 2.1-percent rate of growth in output and a 0.4-percent rate of growth in
hours worked over that three-year period.
Manufacturing sector labor productivity decreased 1.5 percent in the fourth quarter of 2022, as output
decreased 2.6 percent and hours worked decreased 1.1 percent. In the durable manufacturing sector,
productivity decreased 1.7 percent, with a 2.9-percent decrease in output and a 1.2-percent decrease in
hours worked. Nondurable manufacturing sector productivity decreased 1.4 percent, as output decreased
2.3 percent and hours worked decreased 0.9 percent. Total manufacturing sector productivity decreased
1.5 percent from the same quarter a year ago. (See tables A1, 3, 4, and 5.)
Unit labor costs in the total manufacturing sector increased 4.8 percent in the fourth quarter of 2022,
reflecting a 3.2-percent increase in hourly compensation and a 1.5-percent decrease in productivity.
Manufacturing unit labor costs increased 4.3 percent from the same quarter a year ago. (See tables A1
and 3.)
Manufacturing sector labor productivity declined in 5 of the last 6 quarters. In the third and fourth
quarters of 2022, output also declined; productivity decreased in the other three quarters because hours
worked increased faster than output. The total manufacturing labor productivity index has grown at an
annualized rate of 0.8 percent in the current business cycle since the fourth quarter of 2019, reflecting a
0.9-percent rate of growth in output and a 0.1-percent rate of growth in hours worked.
The concepts, sources, and methods used for the manufacturing output series differ from those used in
the business and nonfarm business output series; these output measures are not directly comparable. See
the Technical Notes for a more detailed explanation.
Revised measures
Revised and previously published measures for the third quarter of 2022 are shown in tables A2 and
B1 and cover the following major sectors: nonfarm business, business, manufacturing, and nonfinancial
corporations.
In the third quarter of 2022, nonfarm business productivity was revised up 0.6 percentage point, to an
increase of 1.4 percent. (See table B1.) Unit labor costs increased 2.0 percent in the third quarter, rather
than increasing 2.4 percent as previously reported.
In the manufacturing sector, productivity in the third quarter of 2022 was revised down 0.6 percentage
point, to a decrease of 3.5 percent. Manufacturing unit labor costs increased 6.5 percent, a 0.7-
percentage point upward revision from the previous estimate.
In the nonfinancial corporate sector, productivity was revised up 0.2 percentage point in the third
quarter of 2022 to a decrease of 1.6 percent. This revision reflects a 0.1-percentage point upward
revision to output to an increase of 1.9 percent. Hours worked were revised down 0.2 percentage point to
an increase of 3.5 percent. (See table A2.)
Annual averages
Table C1 presents annual average changes for the most recent 5 years for the nonfarm business sector
and the total manufacturing sector. Nonfarm business sector productivity decreased 1.3 percent in
2022, as output increased 2.3 percent and hours worked increased 3.7 percent. This is the largest annual
decline in productivity since 1974, when productivity decreased 1.7 percent, and is the second-largest
annual decline in the series, which begins in 1948.
Unit labor costs in the nonfarm business sector increased 5.7 percent in 2022, reflecting an increase of
4.4 percent in hourly compensation and a decline of 1.3 percent in productivity. This is the largest
annual increase in unit labor costs since an 8.2-percent increase in 1982. Real hourly compensation,
which takes into account changes in consumer prices, decreased 3.4 percent in 2022. This is the largest
decline in the series, which begins in 1948. Consumer prices grew 8.0 percent in 2022, which was the
highest annual growth rate since a 9.4-percent increase in 1981.
In the manufacturing sector, productivity decreased 0.9 percent in 2022, reflecting an increase in
output of 3.2 percent and an increase in hours of 4.2 percent. The increase in hours was the largest in the
series, which begins in 1988.
Manufacturing unit labor costs increased 4.3 percent in 2022. Manufacturing real hourly compensation
decreased 4.3 percent, as hourly compensation increased 3.4 percent while consumer prices increased
8.0 percent. The decrease in real hourly compensation was the largest in the series, which begins in
1988.
Quarterly and annual data, where available, for all sectors from 2020 to 2022 appear in tables 1-6. Full
historical measures can be found on the Productivity and Costs home page:
www.bls.gov/productivity/tables/.
______________
The revised Productivity and Costs news release for fourth-quarter and annual averages 2022 is
scheduled to be released on Thursday, March 2, 2023, at 8:30 a.m. (ET).
=========================================================================================================================
Upcoming Revisions
Data in this release do not reflect the annual benchmark revision of the BLS Current Employment Statistics
program data to be released February 3, 2023. This benchmark will be incorporated in the next release on
March 2, 2023.
=========================================================================================================================
=========================================================================================================================
Table A1. Labor productivity growth and related measures - preliminary fourth-quarter 2022
(percent change from previous quarter at annual rate and from same quarter a year ago)
Labor Hours Hourly Real hourly Unit labor
Sector Percent change from: productivity Output worked compensation compensation costs
-------------------------------------------------------------------------------------------------------------------------
Nonfarm business Previous quarter 3.0 3.5 0.5 4.1 1.0 1.1
A year ago -1.5 0.8 2.3 3.0 -3.8 4.5
Business Previous quarter 3.2 3.3 0.1 4.5 1.4 1.3
A year ago -1.4 0.7 2.2 3.1 -3.7 4.6
Manufacturing Previous quarter -1.5 -2.6 -1.1 3.2 0.1 4.8
A Year ago -1.5 1.0 2.5 2.7 -4.1 4.3
Durable Previous quarter -1.7 -2.9 -1.2 2.4 -0.8 4.1
manufacturing A year ago -1.5 2.3 3.8 2.1 -4.6 3.6
Nondurable Previous quarter -1.4 -2.3 -0.9 5.0 1.8 6.5
manufacturing A year ago -0.8 -0.3 0.5 3.5 -3.3 4.3
=========================================================================================================================
=========================================================================================================================
Table A2. Labor productivity growth and related measures - revised and previously published third-quarter
2022
(percent change from previous quarter at annual rate)
Labor Hours Hourly Real hourly Unit labor
Sector productivity Output worked compensation compensation costs
-------------------------------------------------------------------------------------------------------------------------
Nonfinancial Revised -1.6 1.9 3.5 3.6 -2.0 5.3
corporate Previously published -1.8 1.8 3.7 3.5 -2.1 5.3
=========================================================================================================================
=========================================================================================================================
Table B1. Labor productivity growth and related measures - revised and previously published third-quarter 2022
(percent change from previous quarter at annual rate)
Labor Hours Hourly Real hourly Unit labor
Sector productivity Output worked compensation compensation costs
-------------------------------------------------------------------------------------------------------------------------
Nonfarm business Revised 1.4 3.6 2.3 3.4 -2.2 2.0
Previously published 0.8 3.3 2.5 3.2 -2.3 2.4
Business Revised 1.1 3.5 2.4 3.2 -2.3 2.0
Previously published 0.5 3.1 2.6 3.1 -2.5 2.6
Manufacturing Revised -3.5 -0.2 3.5 2.7 -2.8 6.5
Previously published -2.9 0.6 3.6 2.7 -2.9 5.8
Durable Revised -5.0 1.7 7.0 2.2 -3.3 7.5
manufacturing Previously published -5.0 1.7 7.1 2.2 -3.3 7.5
Nondurable Revised -0.1 -2.1 -2.1 2.9 -2.7 2.9
manufacturing Previously published 1.3 -0.7 -1.9 2.8 -2.8 1.5
=========================================================================================================================
=========================================================================================================================
Table C1. Labor productivity growth and related measures - annual average changes: 2018-2022
Labor Hours Hourly Real hourly Unit labor
Sector Year productivity Output worked compensation compensation costs
-------------------------------------------------------------------------------------------------------------------------
Nonfarm business 2022 -1.3 2.3 3.7 4.4 -3.4 5.7
2021 2.4 7.8 5.3 4.9 0.2 2.4
2020 4.4 -3.5 -7.6 8.1 6.8 3.6
2019 2.0 2.7 0.7 3.8 2.0 1.8
2018 1.4 3.5 2.0 3.4 0.9 1.9
Manufacturing 2022 -0.9 3.2 4.2 3.4 -4.3 4.3
2021 2.7 5.8 3.1 2.7 -1.8 0.1
2020 0.8 -6.6 -7.4 7.0 5.7 6.1
2019 -2.4 -2.3 0.2 2.4 0.5 4.9
2018 0.2 2.0 1.8 2.3 -0.1 2.1
=========================================================================================================================
TECHNICAL NOTES
Labor Hours
Hours worked data for the labor productivity and cost measures include hours worked for all
persons working in the sector—wage and salary workers, the self-employed and unpaid family
workers. The primary source of hours and employment data is the BLS Current Employment
Statistics (CES) program, which provides monthly survey data on the number of jobs held by and
hours paid to wage and salary workers in nonfarm establishments, counting a person who is
employed by two or more establishments at each place of employment. Hours of paid time off
are removed from hours paid using data from the National Compensation Survey (NCS) for 1996
forward and data from the BLS Hours at Work survey, conducted for this purpose, prior to 1990.
Between 1990 and 1995, hours of paid time off are removed using a combination of NCS and
Hours at Work survey data. Off-the-clock hours are added, yielding hours worked, using data
from the Current Population Survey (CPS).
Data from the CPS are used to estimate hours worked for farm labor, nonfarm proprietors, and
nonfarm unpaid family workers. Using CPS information on employment and hours worked at
primary jobs and all other jobs, separately, the BLS productivity measures assign all hours
worked to the appropriate industrial sector. Hours for government enterprises are derived from
the CPS, the CES, and the National Income and Product Accounts (NIPA) prepared by the
Bureau of Economic Analysis (BEA) of the Department of Commerce.
Detailed hours data are presented in the table “Hours Worked in Total U.S. Economy and
Subsectors” on the BLS website (www.bls.gov/productivity/tables/total-economy-hours-
employment.xlsx).
Output
Business sector output is a chain-type, current-weighted index constructed after excluding from
gross domestic product (GDP) the following outputs: general government, nonprofit institutions,
and households (including owner-occupied housing). Corresponding exclusions also are made in
labor hours worked. Business output accounted for about 77 percent of the value of GDP in
2021. Nonfarm business, which excludes farming, accounted for about 76 percent of GDP in
2021.
Annual indexes for manufacturing and its durable and nondurable goods components are
constructed by deflating current-dollar industry value of production data from the U.S. Bureau of
the Census with deflators from the BLS. These deflators are based on data from the BLS
Producer Price Index program and other sources. The industry shipments are aggregated using
annual weights, and intrasectoral transactions are removed. Quarterly manufacturing output
measures are based on the indexes of industrial production prepared monthly by the Board of
Governors of the Federal Reserve System, adjusted to be consistent with annual indexes of
manufacturing sector output prepared by BLS.
Nonfinancial corporate output is a chain-type, current-weighted index calculated on the basis of
the costs incurred and the incomes earned from production. The output measure excludes the
following outputs from GDP: general government; nonprofit institutions; households;
unincorporated business; and those corporations classified as offices of bank holding companies,
offices of other holding companies, or offices in the finance and insurance sector. Nonfinancial
corporations accounted for about 51 percent of the value of GDP in 2021.
Labor Productivity
The measure describes the relationship between real output and the labor time involved in its
production. Measures of labor productivity growth show the changes from period to period in the
amount of goods and services produced per hour worked. They reflect the joint effects of many
influences, including changes in technology; capital investment; level of output; utilization of
capacity, energy, and materials; the organization of production; managerial skill; and the
characteristics and effort of the work force.
Labor Compensation
The measure includes accrued wages and salaries, supplements, employer contributions to
employee benefit plans, and taxes. Estimates of labor compensation by major sector, required for
measures of hourly compensation and unit labor costs, are based primarily on employee
compensation data from the NIPA, prepared by the BEA. The compensation of employees in
general government, nonprofit institutions and households are subtracted from compensation of
employees in domestic industries to derive employee compensation for the business sector. The
labor compensation of proprietors cannot be explicitly identified and must be estimated. This is
done by assuming that proprietors have the same hourly compensation as employees in the same
sector. The quarterly labor productivity and cost measures do not contain estimates of
compensation for unpaid family workers.
Unit Labor Costs
These measures describe the relationship between compensation per hour and labor productivity,
or real output per hour, and can be used as an indicator of inflationary pressure on producers.
Increases in hourly compensation increase unit labor costs; labor productivity increases offset
compensation increases and lower unit labor costs.
Presentation of the data
The quarterly data in this release are presented in three ways: as percent changes from the
previous quarter presented at a compound annual rate, as percent changes from the
corresponding quarter of the previous year, and as index number series where 2012=100. Annual
data are presented both as index number series and percent changes from the previous year.
The index numbers and rates of change reported in the productivity and costs news release are
rounded to one decimal place. All percent changes in this release and on the BLS web site are
calculated using index numbers to three decimal places. A complete historical series of these
index numbers are available at the BLS web site, www.bls.gov/data/home.htm, or by contacting
the BLS Division of Major Sector Productivity (Telephone 202-691-5606 or email
productivity@bls.gov).
For a more detailed explanation of methodology see the Handbook of Methods at
www.bls.gov/opub/hom/msp/home.htm.
If you are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access
telecommunications relay services.
Table 1. Business sector: Labor productivity, hourly compensation, unit labor costs, and prices,
seasonally adjusted.
Value-
Real added
Hourly hourly Unit output
Year Labor compen- compen- Unit nonlabor price
and produc- Hours sation sation labor payments deflator
quarter tivity Output worked (1) (2) costs (3) (4)
---------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate (5)
2022 ANNUAL -1.3 2.2 3.6 4.5 -3.2 5.8 9.3 7.3
2022 IV 3.2 3.3 0.1 4.5 1.4 1.3 5.3 3.0
III 1.1 r 3.5 r 2.4 r 3.2 r -2.3 r 2.0 r 6.2 r 3.8 r
II -3.8 -1.4 2.5 2.7 -7.1 6.8 15.3 10.4
I -6.0 -2.4 3.8 2.0 -6.6 8.6 8.5 8.5
2021 ANNUAL 2.4 7.7 5.1 5.0 0.3 2.6 8.3 4.9
2021 IV 4.5 9.0 4.4 8.4 0.4 3.8 12.2 7.3
III -2.1 2.6 4.8 7.1 0.4 9.4 2.7 6.5
II 2.9 8.7 5.7 7.6 -0.5 4.6 11.0 7.3
I 2.9 8.1 5.0 -1.1 -5.0 -4.0 22.5 6.3
2020 ANNUAL 4.3 -3.4 -7.4 8.0 6.7 3.5 -3.8 0.4
2020 IV -4.5 5.3 10.2 8.8 6.4 13.8 -11.6 2.4
III 8.3 47.1 35.9 -4.6 -9.0 -11.9 33.3 4.6
II 16.6 -35.1 -44.3 24.9 29.2 7.2 -19.2 -4.5
I -0.9 -6.3 -5.5 9.7 8.3 10.7 -12.2 0.3
---------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2022 ANNUAL -1.3 2.2 3.6 4.5 -3.2 5.8 9.3 7.3
2022 IV -1.4 0.7 2.2 3.1 -3.7 4.6 8.8 6.4
III -1.2 r 2.1 r 3.3 4.0 -3.9 r 5.3 r 10.5 r 7.5 r
II -2.0 1.8 3.9 5.0 -3.3 7.1 9.6 8.2
I -0.3 4.4 4.7 6.2 -1.6 6.6 8.5 7.4
2021 ANNUAL 2.4 7.7 5.1 5.0 0.3 2.6 8.3 4.9
2021 IV 2.0 7.1 5.0 5.4 -1.2 3.3 11.9 6.8
III -0.3 6.1 6.4 5.5 0.2 5.8 5.4 5.6
II 2.3 16.1 13.5 2.5 -2.2 0.2 12.5 5.1
I 5.5 2.1 -3.3 6.4 4.4 0.8 3.9 2.1
2020 ANNUAL 4.3 -3.4 -7.4 8.0 6.7 3.5 -3.8 0.4
2020 IV 4.6 -1.5 -5.8 9.2 7.9 4.5 -4.4 0.6
III 6.4 -2.3 -8.2 8.7 7.3 2.1 -2.1 0.3
II 4.8 -10.4 -14.5 10.1 9.6 5.0 -8.0 -0.7
I 1.4 0.5 -0.9 4.1 2.0 2.6 -0.9 1.1
---------------------------------------------------------------------------------------------------
Indexes 2012=100
2022 ANNUAL 113.8 128.8 113.1 143.0 112.0 125.6 123.4 124.6
2022 IV 114.4 130.0 113.6 145.0 111.5 126.7 126.6 126.7
III 113.5 r 129.0 r 113.6 r 143.4 r 111.1 r 126.3 r 125.0 r 125.7 r
II 113.2 127.9 113.0 142.3 111.8 125.7 123.1 124.5
I 114.3 128.3 112.3 141.3 113.8 123.6 118.8 121.5
2021 ANNUAL 115.3 126.0 109.3 136.8 115.7 118.7 112.8 116.1
2021 IV 116.1 129.1 111.2 140.6 115.8 121.1 116.4 119.0
III 114.8 126.4 110.0 137.8 115.7 120.0 113.1 117.0
II 115.5 125.5 108.7 135.5 115.6 117.3 112.3 115.1
I 114.7 123.0 107.2 133.0 115.7 116.0 109.4 113.1
2020 ANNUAL 112.6 117.0 103.9 130.3 115.4 115.7 104.2 110.6
2020 IV 113.8 120.6 105.9 133.4 117.2 117.2 104.0 111.4
III 115.1 119.0 103.4 130.6 115.4 113.5 107.3 110.8
II 112.9 108.1 95.8 132.2 118.1 117.1 99.8 109.5
I 108.6 120.4 110.8 125.0 110.8 115.1 105.3 110.8
---------------------------------------------------------------------------------------------------
See footnotes following Table 6. February 2, 2023
r=revised Source: Bureau of Labor Statistics
Table 2. Nonfarm business sector: Labor productivity, hourly compensation, unit labor costs, and
prices, seasonally adjusted.
Value-
Real added
Hourly hourly Unit output
Year Labor compen- compen- Unit nonlabor price
and produc- Hours sation sation labor payments deflator
quarter tivity Output worked (1) (2) costs (3) (4)
---------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate (5)
2022 ANNUAL -1.3 2.3 3.7 4.4 -3.4 5.7 8.5 6.9
2022 IV 3.0 3.5 0.5 4.1 1.0 1.1 5.6 3.0
III 1.4 r 3.6 r 2.3 r 3.4 r -2.2 r 2.0 r 6.2 r 3.8 r
II -4.1 -1.2 2.9 2.3 -7.4 6.7 13.9 9.7
I -5.9 -2.5 3.6 2.1 -6.4 8.5 6.4 7.6
2021 ANNUAL 2.4 7.8 5.3 4.9 0.2 2.4 7.7 4.6
2021 IV 4.4 9.1 4.5 8.2 0.3 3.6 12.9 7.5
III -2.4 2.7 5.3 6.7 0.0 9.3 2.3 6.3
II 2.7 8.9 6.0 7.4 -0.7 4.5 8.6 6.2
I 3.0 8.5 5.3 -1.3 -5.2 -4.2 22.8 6.2
2020 ANNUAL 4.4 -3.5 -7.6 8.1 6.8 3.6 -3.8 0.4
2020 IV -3.9 5.3 9.5 9.5 7.1 13.9 -12.7 1.9
III 7.2 47.2 37.2 -5.5 -9.8 -11.9 32.4 4.2
II 17.9 -35.0 -44.9 25.8 30.1 6.6 -17.4 -3.9
I -1.4 -6.7 -5.4 9.8 8.4 11.3 -12.8 0.4
---------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2022 ANNUAL -1.3 2.3 3.7 4.4 -3.4 5.7 8.5 6.9
2022 IV -1.5 0.8 2.3 3.0 -3.8 4.5 8.0 6.0
III -1.1 r 2.2 r 3.3 r 4.0 -4.0 5.2 r 9.8 r 7.1
II -2.1 1.9 4.1 4.8 -3.5 7.0 8.8 7.8
I -0.4 4.5 4.8 6.1 -1.8 6.5 7.5 6.9
2021 ANNUAL 2.4 7.8 5.3 4.9 0.2 2.4 7.7 4.6
2021 IV 1.9 7.3 5.3 5.2 -1.4 3.2 11.4 6.5
III -0.2 6.3 6.5 5.5 0.2 5.7 4.5 5.1
II 2.2 16.3 13.8 2.3 -2.4 0.1 11.4 4.6
I 5.8 2.2 -3.4 6.4 4.5 0.6 4.0 2.0
2020 ANNUAL 4.4 -3.5 -7.6 8.1 6.8 3.6 -3.8 0.4
2020 IV 4.7 -1.5 -5.9 9.3 8.0 4.5 -4.5 0.6
III 6.4 -2.4 -8.2 8.6 7.3 2.1 -2.0 0.3
II 5.1 -10.4 -14.8 10.3 9.8 4.9 -7.8 -0.6
I 1.4 0.5 -1.0 4.2 2.0 2.7 -1.1 1.1
---------------------------------------------------------------------------------------------------
Indexes 2012=100
2022 ANNUAL 113.7 128.9 113.4 143.0 112.0 125.8 122.8 124.5
2022 IV 114.3 130.2 114.0 144.9 111.4 126.8 126.0 126.5
III 113.4 r 129.1 r 113.8 r 143.5 r 111.1 r 126.5 r 124.3 r 125.5 r
II 113.0 128.0 113.2 142.3 111.8 125.9 122.5 124.4
I 114.2 128.4 112.4 141.5 113.9 123.8 118.5 121.5
2021 ANNUAL 115.2 126.0 109.3 137.0 115.9 118.9 113.3 116.4
2021 IV 116.0 129.2 111.4 140.7 115.9 121.3 116.7 119.3
III 114.7 126.4 110.2 138.0 115.8 120.3 113.2 117.2
II 115.4 125.5 108.8 135.8 115.8 117.6 112.6 115.4
I 114.7 122.9 107.2 133.4 116.0 116.3 110.3 113.7
2020 ANNUAL 112.5 116.9 103.9 130.6 115.6 116.1 105.2 111.3
2020 IV 113.8 120.4 105.8 133.8 117.5 117.6 104.8 112.0
III 114.9 118.9 103.4 130.8 115.5 113.8 108.4 111.5
II 112.9 107.9 95.6 132.7 118.6 117.5 101.1 110.3
I 108.4 120.2 110.9 125.3 111.0 115.6 106.0 111.4
---------------------------------------------------------------------------------------------------
See footnotes following Table 6. February 2, 2023
r=revised Source: Bureau of Labor Statistics
Table 3. Manufacturing sector: Labor productivity, hourly compensation, and unit labor costs,
seasonally adjusted.
Real
Year Labor Hourly hourly Unit
and produc- Hours compensa- compensa- labor
quarter tivity Output worked tion (1) tion (2) costs
---------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate (5)
2022 ANNUAL -0.9 3.2 4.2 3.4 -4.3 4.3
2022 IV -1.5 -2.6 -1.1 3.2 0.1 4.8
III -3.5 r -0.2 r 3.5 r 2.7 -2.8 r 6.5 r
II 2.6 r 3.3 r 0.7 3.5 -6.3 0.9 r
I -3.3 3.7 7.3 1.4 -7.1 4.9
2021 ANNUAL 2.7 5.8 3.1 2.7 -1.8 0.1
2021 IV -0.7 5.9 6.7 8.7 0.7 9.5
III -0.5 3.8 4.3 -0.5 -6.7 0.0
II 5.1 5.7 0.6 6.6 -1.4 1.4
I 0.7 2.6 1.9 -1.7 -5.5 -2.3
2020 ANNUAL 0.8 -6.6 -7.4 7.0 5.7 6.1
2020 IV -0.5 8.3 8.9 7.4 5.0 7.9
III 17.8 53.1 30.0 -12.4 -16.4 -25.6
II -5.3 -43.1 -39.9 30.2 34.6 37.4
I 0.5 -5.3 -5.8 5.7 4.3 5.1
---------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2022 ANNUAL -0.9 3.2 4.2 3.4 -4.3 4.3
2022 IV -1.5 1.0 2.5 2.7 -4.1 4.3
III -1.3 r 3.1 r 4.5 4.1 r -3.9 5.4 r
II -0.5 4.1 r 4.7 3.2 -4.9 3.8 r
I 0.1 4.8 4.7 4.0 -3.7 3.9
2021 ANNUAL 2.7 5.8 3.1 2.7 -1.8 0.1
2021 IV 1.1 4.5 3.3 3.2 -3.3 2.1
III 1.2 5.1 3.9 2.9 -2.2 1.7
II 5.5 15.8 9.7 -0.3 -4.9 -5.6
I 2.8 -0.8 -3.5 4.8 2.8 1.9
2020 ANNUAL 0.8 -6.6 -7.4 7.0 5.7 6.1
2020 IV 2.8 -2.8 -5.4 6.7 5.4 3.8
III 2.9 -5.4 -8.1 7.2 5.9 4.2
II -1.7 -15.2 -13.7 10.5 10.0 12.4
I -1.3 -3.2 -1.8 3.4 1.3 4.8
---------------------------------------------------------------------------------------------------
Indexes 2012=100
2022 ANNUAL 97.7 103.2 105.6 131.2 102.7 134.3
2022 IV 97.1 102.8 105.9 132.7 102.0 136.6
III 97.5 r 103.5 r 106.2 r 131.6 r 102.0 r 135.0 r
II 98.4 r 103.6 r 105.2 130.7 102.7 132.9 r
I 97.8 102.7 105.1 129.6 104.4 132.6
2021 ANNUAL 98.6 99.9 101.4 126.9 107.3 128.7
2021 IV 98.6 101.8 103.3 129.2 106.3 131.0
III 98.8 100.4 101.6 126.5 106.2 128.1
II 98.9 99.4 100.5 126.6 108.0 128.0
I 97.7 98.1 100.4 124.6 108.4 127.6
2020 ANNUAL 96.0 94.4 98.3 123.5 109.3 128.6
2020 IV 97.5 97.4 99.9 125.1 109.9 128.3
III 97.6 95.5 97.8 122.9 108.6 125.9
II 93.7 85.9 91.6 127.1 113.6 135.6
I 95.0 98.9 104.1 119.0 105.4 125.2
---------------------------------------------------------------------------------------------------
See footnotes following Table 6. February 2, 2023
r=revised Source: Bureau of Labor Statistics
Table 4. Durable manufacturing sector: Labor productivity, hourly compensation, and unit labor
costs, seasonally adjusted.
Real
Year Labor Hourly hourly Unit
and produc- Hours compensa- compensa- labor
quarter tivity Output worked tion (1) tion (2) costs
---------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate (5)
2022 ANNUAL -0.2 4.5 4.7 2.7 -4.9 2.9
2022 IV -1.7 -2.9 -1.2 2.4 -0.8 4.1
III -5.0 1.7 7.0 r 2.2 -3.3 7.5
II 3.9 5.1 1.2 4.5 -5.4 0.6
I -2.8 5.5 8.6 -0.4 -8.8 2.5
2021 ANNUAL 5.0 8.2 3.0 3.5 -1.2 -1.4
2021 IV 1.7 6.5 4.7 10.3 2.2 8.4
III 1.7 6.7 4.9 -6.1 -12.0 -7.7
II 1.7 1.0 -0.7 9.9 1.6 8.0
I 1.5 6.4 4.8 -0.3 -4.2 -1.7
2020 ANNUAL 1.1 -7.9 -8.9 7.1 5.8 6.0
2020 IV 2.3 9.1 6.7 11.2 8.8 8.7
III 42.5 93.9 36.1 -15.9 -19.7 -41.0
II -13.9 -53.0 -45.4 34.7 39.3 56.5
I -1.6 -8.3 -6.8 4.6 3.3 6.3
---------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2022 ANNUAL -0.2 4.5 4.7 2.7 -4.9 2.9
2022 IV -1.5 2.3 3.8 2.1 -4.6 3.6
III -0.6 4.7 5.3 r 4.1 -3.9 4.7
II 1.1 6.0 4.8 1.9 -6.2 0.8
I 0.6 4.9 4.3 3.2 -4.4 2.6
2021 ANNUAL 5.0 8.2 3.0 3.5 -1.2 -1.4
2021 IV 1.7 5.1 3.4 3.2 -3.3 1.5
III 1.8 5.7 3.9 3.4 -1.7 1.6
II 10.8 22.8 10.9 0.6 -4.0 -9.2
I 6.2 1.4 -4.5 5.9 3.9 -0.3
2020 ANNUAL 1.1 -7.9 -8.9 7.1 5.8 6.0
2020 IV 5.4 -2.3 -7.3 7.1 5.9 1.6
III 4.8 -5.1 -9.5 7.3 5.9 2.3
II -4.7 -20.0 -16.1 11.3 10.8 16.8
I -2.0 -4.3 -2.3 2.8 0.7 4.9
---------------------------------------------------------------------------------------------------
Indexes 2012=100
2022 ANNUAL 102.2 106.9 104.5 131.9 103.3 129.0
2022 IV 101.5 106.9 105.2 133.2 102.4 131.2
III 102.0 r 107.6 r 105.6 r 132.5 r 102.6 r 129.9 r
II 103.3 r 107.2 r 103.8 131.8 103.5 127.6 r
I 102.3 105.9 103.5 130.3 105.0 127.4
2021 ANNUAL 102.5 102.3 99.9 128.5 108.7 125.4
2021 IV 103.0 104.4 101.4 130.5 107.4 126.6
III 102.6 102.8 100.2 127.3 106.8 124.1
II 102.2 101.2 99.0 129.3 110.3 126.6
I 101.7 100.9 99.2 126.3 109.8 124.2
2020 ANNUAL 97.6 94.6 96.9 124.2 109.9 127.2
2020 IV 101.3 99.4 98.0 126.4 111.0 124.7
III 100.8 97.2 96.5 123.1 108.7 122.1
II 92.2 82.4 89.3 128.5 114.9 139.4
I 95.8 99.5 103.9 119.3 105.7 124.6
---------------------------------------------------------------------------------------------------
See footnotes following Table 6. February 2, 2023
r=revised Source: Bureau of Labor Statistics
Table 5. Nondurable manufacturing sector: Labor productivity, hourly compensation, and unit labor
costs, seasonally adjusted.
Real
Year Labor Hourly hourly Unit
and produc- Hours compensa- compensa- labor
quarter tivity Output worked tion (1) tion (2) costs
---------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate (5)
2022 ANNUAL -1.3 2.0 3.4 4.6 -3.1 6.0
2022 IV -1.4 -2.3 -0.9 5.0 1.8 6.5
III -0.1 r -2.1 r -2.1 r 2.9 r -2.7 r 2.9 r
II 1.5 r 1.4 r -0.2 1.6 -8.1 0.1 r
I -3.2 1.8 5.1 4.6 -4.2 8.1
2021 ANNUAL 0.3 3.5 3.2 1.4 -3.1 1.2
2021 IV -4.3 5.1 9.8 6.3 -1.5 11.1
III -2.4 0.8 3.3 11.1 4.1 13.9
II 8.2 11.2 2.7 1.0 -6.5 -6.7
I 1.3 -1.3 -2.5 -5.1 -8.8 -6.3
2020 ANNUAL -0.1 -4.9 -4.8 7.2 5.9 7.3
2020 IV -4.3 7.7 12.5 1.0 -1.2 5.5
III -0.6 19.8 20.6 -6.4 -10.7 -5.8
II -1.2 -30.7 -29.8 24.8 29.1 26.4
I 2.5 -1.8 -4.1 8.0 6.6 5.4
---------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2022 ANNUAL -1.3 2.0 3.4 4.6 -3.1 6.0
2022 IV -0.8 -0.3 0.5 3.5 -3.3 4.3
III -1.5 r 1.5 r 3.1 3.8 -4.1 5.5 r
II -2.1 r 2.3 r 4.5 5.9 -2.5 8.2 r
I -0.5 4.7 5.2 5.7 -2.1 6.3
2021 ANNUAL 0.3 3.5 3.2 1.4 -3.1 1.2
2021 IV 0.6 3.9 3.2 3.2 -3.3 2.6
III 0.6 4.5 3.9 1.9 -3.2 1.3
II 1.1 9.1 7.9 -2.4 -6.9 -3.4
I -1.2 -3.0 -1.8 2.9 1.0 4.2
2020 ANNUAL -0.1 -4.9 -4.8 7.2 5.9 7.3
2020 IV -0.9 -3.2 -2.3 6.3 5.0 7.3
III 0.3 -5.4 -5.7 7.5 6.2 7.2
II 0.1 -9.5 -9.7 9.8 9.3 9.7
I -0.5 -1.6 -1.1 4.7 2.5 5.2
---------------------------------------------------------------------------------------------------
Indexes 2012=100
2022 ANNUAL 96.5 103.7 107.4 130.0 101.8 134.7
2022 IV 96.4 103.0 106.9 131.8 101.3 136.8
III 96.7 r 103.6 r 107.2 r 130.2 r 100.9 r 134.6 r
II 96.7 r 104.2 r 107.7 129.3 101.6 133.7 r
I 96.3 103.8 107.8 128.8 103.7 133.6
2021 ANNUAL 97.8 101.6 103.9 124.3 105.1 127.0
2021 IV 97.1 103.4 106.4 127.3 104.8 131.1
III 98.2 102.1 104.0 125.4 105.2 127.7
II 98.8 101.9 103.1 122.1 104.1 123.6
I 96.9 99.2 102.4 121.8 105.9 125.7
2020 ANNUAL 97.6 98.2 100.7 122.5 108.5 125.6
2020 IV 96.5 99.5 103.1 123.4 108.4 127.8
III 97.6 97.7 100.1 123.1 108.7 126.1
II 97.8 93.4 95.5 125.1 111.8 128.0
I 98.1 102.3 104.4 118.4 104.9 120.7
---------------------------------------------------------------------------------------------------
See footnotes following Table 6. February 2, 2023
r=revised Source: Bureau of Labor Statistics
Table 6. Nonfinancial corporate sector: Labor productivity, hourly compensation, unit labor costs,
unit profits, and prices, seasonally adjusted.
Value-
Real added Unit
Hourly hourly output Unit combined
Year Labor compen- compen- Unit price nonlabor input Unit
and produc- Hours sation sation labor deflator costs costs profits
quarter tivity Output worked (1) (2) costs (4) (6) (7) (8)
---------------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate (5)
2022 III -1.6 r 1.9 r 3.5 r 3.6 r -2.0 r 5.3 4.3 r 4.0 r 4.9 r 1.2 r
II -3.2 -0.6 2.7 3.8 -6.1 7.2 12.6 12.0 8.6 36.4
I -4.8 -1.2 3.8 3.8 -4.9 9.1 12.2 24.7 13.6 4.8
2021 ANNUAL 3.2 8.3 4.9 4.7 0.1 1.5 5.0 4.1 2.3 22.9
2021 IV -1.0 5.3 6.4 7.0 -0.9 8.1 8.6 17.7 10.9 -3.1
III 1.8 5.4 3.6 10.0 3.1 8.1 8.2 17.0 10.7 -4.0
II -0.7 4.7 5.4 7.3 -0.8 8.0 8.2 -10.8 2.0 48.2
I 2.5 7.3 4.7 -1.7 -5.5 -4.1 4.4 3.3 -1.9 51.6
2020 ANNUAL 3.5 -4.0 -7.3 8.1 6.7 4.4 1.4 -7.5 0.6 6.6
2020 IV 12.6 24.3 10.4 7.1 4.8 -4.9 1.3 59.3 10.3 -38.3
III 0.9 34.5 33.3 -6.4 -10.6 -7.2 3.2 -22.9 -11.9 177.2
II 3.5 -41.0 -43.0 28.9 33.3 24.6 2.9 -35.4 2.3 7.0
I 2.7 -2.3 -4.9 8.5 7.1 5.6 -0.6 2.5 4.6 -30.6
---------------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2022 III -2.7 1.3 4.1 4.5 -3.5 7.4 9.4 r 14.4 r 9.5 8.8 r
II -1.8 2.2 4.1 6.1 -2.3 8.1 10.4 17.8 10.9 7.4
I -1.2 3.5 4.8 7.0 -0.9 8.3 9.3 11.3 9.2 9.6
2021 ANNUAL 3.2 8.3 4.9 4.7 0.1 1.5 5.0 4.1 2.3 22.9
2021 IV 0.6 5.7 5.0 5.6 -1.0 4.9 7.3 6.1 5.3 20.3
III 3.9 10.2 6.0 5.6 0.3 1.6 5.5 14.5 5.1 7.4
II 3.7 17.1 12.9 1.4 -3.2 -2.2 4.3 3.1 -0.7 40.0
I 4.8 1.4 -3.2 6.2 4.2 1.3 3.0 -4.8 -0.6 29.1
2020 ANNUAL 3.5 -4.0 -7.3 8.1 6.7 4.4 1.4 -7.5 0.6 6.6
2020 IV 4.8 -0.9 -5.5 8.8 7.6 3.8 1.7 -5.0 1.0 6.2
III 2.9 -5.3 -8.0 8.5 7.2 5.5 1.6 -16.4 -1.6 23.7
II 3.3 -11.4 -14.3 10.6 10.1 7.1 1.1 -9.9 1.7 -3.0
I 2.6 1.6 -1.0 4.1 2.0 1.5 1.0 0.9 1.3 -1.2
---------------------------------------------------------------------------------------------------------
Indexes 2012=100
2022 III 111.2 r 126.1 r 113.4 r 147.0 r 113.9 r 132.2 r 130.3 r 119.6 r 128.0 r 143.9 r
II 111.6 125.5 112.5 145.7 114.5 130.5 128.9 118.5 126.5 143.4
I 112.5 125.7 111.7 144.4 116.3 128.3 125.2 115.2 123.9 132.7
2021 ANNUAL 114.0 123.8 108.6 139.0 117.6 121.9 118.0 104.4 116.1 129.5
2021 IV 113.9 126.1 110.7 143.0 117.8 125.5 121.6 109.0 120.0 131.2
III 114.2 124.5 109.0 140.6 118.0 123.1 119.1 104.6 117.0 132.2
II 113.7 122.9 108.0 137.3 117.1 120.7 116.8 100.6 114.0 133.5
I 113.9 121.5 106.6 134.9 117.3 118.4 114.5 103.5 113.5 121.0
2020 ANNUAL 110.4 114.3 103.5 132.7 117.5 120.2 112.4 100.3 113.6 105.4
2020 IV 113.2 119.3 105.4 135.5 119.0 119.7 113.3 102.7 114.0 109.1
III 109.9 113.0 102.8 133.2 117.6 121.2 112.9 91.4 111.3 123.1
II 109.6 104.9 95.7 135.4 121.0 123.5 112.0 97.5 114.8 95.4
I 108.7 119.8 110.2 127.0 112.6 116.9 111.2 108.8 114.2 93.8
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6. February 2, 2023
r=revised Source: Bureau of Labor Statistics
SOURCES: Output data are from the Bureau of Economic Analysis and the Census Bureau of the U.S.
Department of Commerce; the Bureau of Labor Statistics, U.S. Department of Labor; and the Federal
Reserve Board. Hours and compensation data are from the Bureau of Labor Statistics and the Bureau of
Economic Analysis.
SIZE OF REVISIONS: Productivity and cost measures are revised on a regular schedule as more
complete data become available. The first estimate is published within 40 days of the close of the
reference quarter, the second estimate approximately 30 days later, and the third estimate approximately
60 days after the second estimate. Based on past revisions, the third estimate of nonfarm business sector
quarterly labor productivity growth has differed from the first estimate by -1.0 to +1.3 percentage point
about 80 percent of the time. This interval is based on estimates for reference quarters from the first
quarter of 2001 to the third quarter of 2022. For more about revisions to labor productivity growth see
“How large are revisions to estimates of quarterly labor productivity growth?” at
www.bls.gov/osmr/research-papers/2021/ec210040.htm.
Table Footnotes
(1) Wages and salaries of employees plus employers' contributions for social insurance and private
benefit plans. Except for nonfinancial corporations, where there are no self-employed, data also include
an estimate of wages, salaries, and supplemental payments for the self-employed.
(2) The change for recent quarters is based on the Consumer Price Index for all urban consumers
(CPI-U). The trend from 1978-2021 is based on the Consumer Price Index Retroactive series (CPI-U-RS).
(3) Unit nonlabor payments include profits, consumption of fixed capital, taxes on production and
imports less subsidies, net interest and miscellaneous payments, business current transfer payments,
rental income of persons, and the current surplus of government enterprises.
(4) Current dollar output divided by the output index.
(5) Quarterly changes: Percent change compounded at annual rate is calculated using index numbers to
three decimal places. Indexes published in the news release are rounded to one decimal place for
convenience. Annual changes: Percent change is calculated using annual indexes to three decimal
places.
(6) Unit nonlabor costs include consumption of fixed capital, taxes on production and imports less
subsidies, net interest and miscellaneous payments, and business current transfer payments.
(7) Total unit costs are the sum of unit labor and nonlabor costs.
(8) Unit profits include corporate profits before tax with inventory valuation and capital consumption
adjustment.
United States Department of Labor
