Transmission of material in this release is embargoed until USDL 21-2098
8:30 a.m. (ET) Tuesday, December 7, 2021
Technical information: (202) 691-5606 • Productivity@bls.gov • www.bls.gov/lpc
Media contact: (202) 691-5902 • PressOffice@bls.gov
PRODUCTIVITY AND COSTS
Third Quarter 2021, Revised
Nonfarm business sector labor productivity decreased 5.2 percent in the third quarter of 2021, the
U.S. Bureau of Labor Statistics reported today, as output increased 1.8 percent and hours worked
increased 7.4 percent. This is the largest decline in quarterly productivity since the second quarter of
1960, when the measure decreased 6.1 percent. (All quarterly percent changes in this release are
seasonally adjusted annual rates.) From the third quarter of 2020 to the third quarter of 2021, nonfarm
business sector labor productivity decreased 0.6 percent. This four-quarter rate is the largest decline
since the fourth quarter of 1993, when the measure also declined 0.6 percent. (See table A1.)
Unit labor costs in the nonfarm business sector increased at an annual rate of 9.6 percent in the third
quarter of 2021, reflecting a 3.9-percent increase in hourly compensation and a 5.2-percent decrease in
productivity. Unit labor costs increased 6.3 percent over the last four quarters. (See table A1.) 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.
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. In the third
quarter of 2021, both output and hours worked increased for the fifth consecutive quarter following
historic declines in those measures in the second quarter of 2020. The output index is now 1.8 percent
above the level seen in the fourth quarter of 2019, the last quarter not affected by the COVID-19
pandemic, while the hours worked index remains 1.0 percent below its fourth quarter 2019 level. (See
tables A1 and 2.)
The nonfarm business labor productivity index is 2.8 percent higher in third-quarter 2021 than it was in
fourth-quarter 2019, corresponding to an annualized growth rate of 1.6 percent during the pandemic
period of fourth quarter 2019 through third quarter 2021. This rate is slightly higher than the 1.4-percent
average annual growth rate during the previous business cycle--from 2007 to 2019--but below the long-
term average rate since 1947 of 2.1 percent.
Manufacturing sector labor productivity decreased 1.8 percent in the third quarter of 2021, as output
increased 5.1 percent and hours worked increased 7.0 percent. In the durable manufacturing sector,
productivity increased 0.7 percent, with a 9.7-percent increase in output and an 8.9-percent increase in
hours worked. Nondurable manufacturing sector productivity decreased 3.6 percent, as 0.3-percent
growth in output was outpaced by 4.0-percent growth in hours worked. Total manufacturing sector
productivity increased 2.2 percent from the same quarter a year ago. (See tables A1, 3, 4, and 5.)
Manufacturing sector output is now 1.0 percent above its level in the fourth quarter of 2019, the last
quarter not affected by the COVID-19 pandemic. Hours worked in manufacturing remain 3.2 percent
below the fourth-quarter 2019 level. The manufacturing labor productivity index was 4.4 percent higher
in third-quarter 2021 than in fourth-quarter 2019, corresponding to an annualized labor productivity
growth rate of 2.5 percent during that period. This rate is much higher than the 0.2-percent average
annual growth rate during the previous business cycle--from 2007 to 2019--and is just above the long-
term rate of 2.3 percent per year from 1987 to 2020. (See tables A1 and 3.)
Unit labor costs in the total manufacturing sector increased 4.6 percent in the third quarter of 2021,
reflecting a 2.7-percent increase in hourly compensation and a 1.8-percent decrease in productivity.
Manufacturing unit labor costs increased 3.7 percent from the same quarter a year ago. (See tables A1
and 3.)
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.
Preliminary third-quarter 2021 measures were announced today for the nonfinancial corporate sector.
(See table A2.) Productivity increased 0.7 percent in the third quarter of 2021 as output and hours
worked increased 6.8 percent and 6.1 percent, respectively. As in the larger nonfarm business sector,
both output and hours worked in the nonfinancial corporate sector have increased in each of the last five
quarters. Output is now 5.2 percent above the fourth quarter 2019 level, while hours worked remain 1.2
percent lower than in fourth-quarter 2019, the last quarter not affected by the COVID-19 pandemic.
Productivity increased 5.5 percent in the nonfinancial corporate sector over the last four quarters. Unit
profits of nonfinancial corporations increased at an 8.3 percent annual rate in the third quarter of 2021
and increased 11.3 percent over the last four quarters. (See table 6.)
Revised measures
Measures released today are based on more recent source data than were available for the preliminary
report. Regular updates of source data from the BLS, the Bureau of Economic Analysis (BEA), and the
Board of Governors of the Federal Reserve System are reflected in data for the second and third quarters
of 2021. Revisions to source data on compensation from BEA, reflecting their incorporation of data
from the BLS Quarterly Census of Employment and Wages, resulted in revisions to measures of hourly
compensation and unit labor costs in the second quarter of 2021 in all sectors. Measures of output for the
manufacturing sectors incorporate revised annual benchmark data from 1987 to 2019 released
November 18 by BLS. This revision primarily affected measures in 2018 and 2019; revisions to percent
changes prior to 2018 did not exceed 0.1 percentage point.
Table B1 presents revised and previously published productivity and related measures for the nonfarm
business, business, and manufacturing sectors for the third quarter of 2021.
In the third quarter of 2021, nonfarm business labor productivity decreased 5.2 percent rather than the
preliminary estimate of a 5.0-percent decrease, reflecting a 0.1-percentage point upward revision to
output and a 0.4-percentage point upward revision to hours worked. Unit labor costs were revised up 1.3
percentage points due primarily to a 1.0-percentage point upward revision to hourly compensation.
In the manufacturing sector, productivity decreased 1.8 percent rather than 1.0 percent as previously
reported, reflecting a 0.6-percentage point downward revision to output and a 0.3-percentage point
upward revision to hours worked. Durable manufacturing productivity increased 0.7 percent rather than
increasing 1.4 percent as previously reported, reflecting a 0.2-percentage point downward revision to
output and a 0.5-percentage point upward revision to hours worked. Nondurable manufacturing
productivity was revised down to a decrease of 3.6 percent rather than a decrease of 2.6 percent as
previously reported, due to a 1.0-percentage point downward revision to output; hours worked were
unrevised. Total manufacturing unit labor costs were revised up 1.7 percentage points to an increase of
4.6 percent, the combined effect of a 0.8-percentage point upward revision to hourly compensation and a
0.8-percentage point downward revision to productivity.
Table B2 shows revised and previously published productivity and related measures for the nonfarm
business, business, manufacturing, and nonfinancial corporate sectors for the second quarter of 2021.
In the second quarter of 2021, labor productivity, output, and hours worked were unrevised for the
nonfarm business sector. Unit labor costs increased 5.9 percent, rather than increasing 1.1 percent as
previously reported, due to a 4.9-percentage point upward revision to hourly compensation.
In the manufacturing sector, productivity was revised down 0.1 percentage point to an increase of 8.4
percent. Unit labor costs were revised up to an increase of 1.7 percent rather than the previously reported
decrease of 3.5 percent. This large revision is mainly due to a 5.5-percentage point upward revision to
hourly compensation.
In the nonfinancial corporate sector, productivity increased 0.8 percent rather than decreasing 1.8
percent as previously reported, due solely to a 2.8-percentage point upward revision to output; hours
worked were unrevised. Unit labor costs were revised up 1.9 percentage points to an increase of 7.6
percent, reflecting a 4.7-percentage point upward revision to hourly compensation that was partially
offset by a 2.6-percentage point upward revision to labor productivity.
Complete annual and quarterly data series can be found on the Productivity and Costs home page:
www.bls.gov/lpc/#data.
______________
The preliminary Productivity and Costs news release for fourth-quarter and annual averages 2021
is scheduled to be released on Thursday, February 3, 2022 at 8:30 a.m. (ET).
-------------------------------------------------------------------------------------------------------------------------
| Calendar year 2022 release dates for Productivity and Costs news releases are now available at |
| www.bls.gov/schedule/news_release/prod2.htm. |
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=========================================================================================================================
Table A1. Labor productivity growth and related measures – revised third-quarter 2021
(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 -5.2 1.8 7.4 3.9 -2.5 9.6
A year ago -0.6 6.2 6.8 5.8 0.4 6.3
Business Previous quarter -5.0 1.5 6.9 4.4 -2.1 9.9
A year ago -0.7 6.0 6.7 5.8 0.5 6.5
Manufacturing Previous quarter -1.8 5.1 7.0 2.7 -3.7 4.6
A year ago 2.2 6.1 3.9 5.9 0.6 3.7
Durable Previous quarter 0.7 9.7 8.9 1.7 -4.6 1.0
manufacturing A year ago 3.0 6.7 3.6 7.1 1.7 4.0
Nondurable Previous quarter -3.6 0.3 4.0 4.1 -2.3 8.0
manufacturing A year ago 1.0 5.5 4.4 3.8 -1.4 2.7
=========================================================================================================================
=========================================================================================================================
Table A2. Labor productivity growth and related measures – preliminary third-quarter 2021
(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
-------------------------------------------------------------------------------------------------------------------------
Nonfinancial Previous quarter 0.7 6.8 6.1 5.4 -1.2 4.7
corporate A year ago 5.5 12.1 6.2 5.3 0.1 -0.2
=========================================================================================================================
=========================================================================================================================
Table B1. Labor productivity growth and related measures – revised and previously published third-quarter 2021
(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 -5.2 1.8 7.4 3.9 -2.5 9.6
Previously published -5.0 1.7 7.0 2.9 -3.5 8.3
Business Revised -5.0 1.5 6.9 4.4 -2.1 9.9
Previously published -4.8 1.4 6.5 3.3 -3.1 8.5
Manufacturing Revised -1.8 5.1 7.0 2.7 -3.7 4.6
Previously published -1.0 5.7 6.7 1.9 -4.5 2.9
Durable Revised 0.7 9.7 8.9 1.7 -4.6 1.0
manufacturing Previously published 1.4 9.9 8.4 0.8 -5.5 -0.6
Nondurable Revised -3.6 0.3 4.0 4.1 -2.3 8.0
manufacturing Previously published -2.6 1.3 4.0 3.5 -2.9 6.2
=========================================================================================================================
=========================================================================================================================
Table B2. Labor productivity growth and related measures – revised and previously published second-quarter 2021
(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 2.4 8.5 5.9 8.4 0.0 5.9
Previously published 2.4 8.5 5.9 3.5 -4.6 1.1
Business Revised 2.6 8.2 5.4 8.9 0.4 6.1
Previously published 2.6 8.2 5.4 3.9 -4.2 1.3
Manufacturing Revised 8.4 5.8 -2.5 10.2 1.7 1.7
Previously published 8.5 5.8 -2.5 4.7 -3.5 -3.5
Durable Revised 5.6 -0.1 -5.4 13.1 4.3 7.1
manufacturing Previously published 5.7 -0.1 -5.4 5.2 -3.0 -0.4
Nondurable Revised 9.8 12.7 2.6 5.8 -2.4 -3.7
manufacturing Previously published 9.8 12.6 2.6 4.5 -3.6 -4.8
Nonfinancial Revised 0.8 5.7 4.9 8.5 0.0 7.6
corporate Previously published -1.8 2.9 4.9 3.8 -4.3 5.7
=========================================================================================================================
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
wage and salary workers in nonfarm establishments, counting a person who is employed by two
or more establishments at each place of employment. The CES also provides average weekly
paid hours of production and nonsupervisory workers in these establishments. Weekly paid hours
are adjusted to hours worked 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, weekly paid hours are adjusted to hours at work using a combination of
NCS and Hours at Work survey data. The Office of Productivity and Technology estimates
average weekly hours at work for nonproduction and supervisory workers using information
from the Current Population Survey (CPS), the CES, and the NCS.
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/lpc/special_requests/us_total_hrs_emp.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 private households (including owner-occupied housing). Corresponding exclusions also are
made in labor hours worked. Business output accounted for about 75 percent of the value of
GDP in 2020. Nonfarm business, which excludes farming, accounted for about 74 percent of
GDP in 2020.
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 intrasector 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; private 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 49 percent of the value of GDP in 2020.
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 private 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 "Technical Information About the Major
Sector Productivity and Costs Methods" at www.bls.gov/lpc/lpcmethods.pdf.
Information in this release will be made available to sensory-impaired individuals upon request.
Voice phone: 202-691-5200; Federal Relay Service number: 1-800-877-8339.
Table 1. Business sector: Labor productivity, hourly compensation, unit labor costs, and prices,
seasonally adjusted.
Real
Hourly hourly Unit Implicit
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)
2021 III -5.0 r 1.5 r 6.9 r 4.4 r -2.1 r 9.9 r 0.8 r 6.1
II 2.6 8.2 5.4 8.9 r 0.4 r 6.1 r 9.0 r 7.3
I 4.2 8.2 3.8 1.5 -2.1 -2.6 17.3 5.1
2020 ANNUAL 2.4 -4.2 -6.5 6.8 5.5 4.3 -4.8 0.4
2020 IV -4.2 6.1 10.8 8.6 6.0 13.4 -13.3 1.6
III 5.9 44.7 36.7 -4.7 -9.0 -10.0 31.7 5.1
II 10.2 -36.8 -42.7 21.9 25.8 10.6 -23.2 -4.6
I -1.1 -6.8 -5.8 9.2 8.1 10.5 -12.6 0.0
2019 ANNUAL 1.9 2.6 0.7 3.8 2.0 1.8 1.1 1.5
2019 IV 0.5 1.8 1.3 3.9 1.3 3.4 -1.2 1.4
III 0.6 3.1 2.5 0.1 -1.2 -0.4 2.5 0.8
II 4.3 3.5 -0.7 1.4 -2.0 -2.7 10.3 2.7
I 3.2 3.1 -0.2 9.4 8.6 5.9 -5.9 0.7
---------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2021 III -0.7 r 6.0 r 6.7 r 5.8 r 0.5 r 6.5 r 2.8 r 5.0
II 2.0 15.8 13.5 3.4 r -1.3 r 1.3 r 9.9 r 4.7
I 3.9 1.2 -2.6 6.4 4.4 2.4 0.7 1.7
2020 ANNUAL 2.4 -4.2 -6.5 6.8 5.5 4.3 -4.8 0.4
2020 IV 2.5 -2.5 -4.9 8.3 7.0 5.7 -6.4 0.5
III 3.8 -3.5 -7.0 7.2 5.8 3.3 -3.3 0.4
II 2.5 -11.3 -13.5 8.5 8.0 5.9 -9.2 -0.6
I 1.1 0.3 -0.7 3.6 1.5 2.5 -0.6 1.2
2019 ANNUAL 1.9 2.6 0.7 3.8 2.0 1.8 1.1 1.5
2019 IV 2.1 2.9 0.7 3.7 1.6 1.5 1.3 1.4
III 2.0 2.7 0.6 3.1 1.3 1.0 2.0 1.5
II 2.0 2.4 0.4 4.2 2.4 2.2 0.5 1.5
I 1.5 2.5 1.0 4.2 2.6 2.7 0.4 1.7
---------------------------------------------------------------------------------------------------
Indexes 2012=100
2021 III 111.6 r 124.5 r 111.6 r 136.5 r 114.5 r 122.3 r 108.7 r 116.3 r
II 113.0 124.1 109.8 135.0 r 115.1 r 119.5 r 108.5 r 114.6
I 112.3 121.6 108.3 132.2 115.0 117.7 106.2 112.6
2020 ANNUAL 110.5 116.0 105.0 128.8 114.0 116.5 103.0 110.6
2020 IV 111.1 119.3 107.3 131.7 115.6 118.5 102.0 111.3
III 112.3 117.5 104.6 129.0 113.9 114.8 105.7 110.8
II 110.7 107.2 96.8 130.6 116.7 117.9 98.7 109.5
I 108.1 120.2 111.2 124.2 110.1 115.0 105.4 110.8
2019 ANNUAL 107.9 121.2 112.3 120.5 108.0 111.7 108.3 110.2
2019 IV 108.4 122.3 112.9 121.5 108.0 112.1 109.0 110.8
III 108.2 121.8 112.5 120.4 107.7 111.2 109.3 110.4
II 108.1 120.8 111.8 120.3 108.0 111.3 108.6 110.2
I 106.9 119.8 112.0 119.9 108.5 112.1 106.0 109.4
---------------------------------------------------------------------------------------------------
See footnotes following Table 6. December 7, 2021
r=revised Source: Bureau of Labor Statistics
Table 2. Nonfarm business sector: Labor productivity, hourly compensation, unit labor costs, and
prices, seasonally adjusted.
Real
Hourly hourly Unit Implicit
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)
2021 III -5.2 r 1.8 r 7.4 r 3.9 r -2.5 r 9.6 r 0.6 r 5.8 r
II 2.4 8.5 5.9 8.4 r 0.0 r 5.9 r 6.5 r 6.1
I 4.3 8.4 4.0 1.4 -2.2 -2.8 16.6 4.6
2020 ANNUAL 2.4 -4.4 -6.6 7.0 5.6 4.5 -4.9 0.4
2020 IV -3.4 6.2 9.9 9.4 6.8 13.3 -14.8 0.9
III 4.6 44.6 38.2 -5.7 -10.0 -9.9 30.5 4.7
II 11.2 -36.9 -43.2 22.7 26.6 10.3 -21.7 -3.9
I -1.8 -7.4 -5.7 9.3 8.2 11.3 -13.2 0.2
2019 ANNUAL 2.0 2.7 0.7 3.8 2.0 1.8 1.2 1.5
2019 IV 0.6 1.8 1.2 4.1 1.5 3.5 -1.5 1.3
III 0.8 3.2 2.4 0.2 -1.1 -0.5 2.4 0.7
II 4.3 3.6 -0.7 1.4 -2.0 -2.8 10.6 2.7
I 3.4 3.4 0.0 9.2 8.4 5.6 -5.5 0.7
---------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2021 III -0.6 r 6.2 r 6.8 r 5.8 r 0.4 r 6.3 r 1.6 r 4.4
II 1.9 15.9 13.7 3.2 r -1.5 r 1.3 r 8.4 r 4.1
I 4.1 1.3 -2.7 6.4 4.5 2.3 0.4 1.5
2020 ANNUAL 2.4 -4.4 -6.6 7.0 5.6 4.5 -4.9 0.4
2020 IV 2.5 -2.7 -5.0 8.5 7.2 5.8 -6.8 0.4
III 3.6 -3.7 -7.0 7.1 5.8 3.4 -3.3 0.5
II 2.6 -11.5 -13.7 8.8 8.3 6.0 -9.0 -0.4
I 1.0 0.2 -0.8 3.7 1.6 2.7 -0.8 1.2
2019 ANNUAL 2.0 2.7 0.7 3.8 2.0 1.8 1.2 1.5
2019 IV 2.3 3.0 0.7 3.7 1.6 1.4 1.4 1.4
III 2.1 2.8 0.6 3.1 1.3 0.9 2.1 1.4
II 2.2 2.6 0.3 4.3 2.4 2.1 0.8 1.5
I 1.6 2.6 1.1 4.3 2.6 2.7 0.6 1.8
---------------------------------------------------------------------------------------------------
Indexes 2012=100
2021 III 111.3 r 124.4 r 111.8 r 136.6 r 114.6 r 122.7 r 108.3 r 116.4 r
II 112.8 123.9 109.9 135.2 r 115.3 r 119.9 r 108.1 r 114.8
I 112.1 121.4 108.3 132.5 115.3 118.2 106.5 113.1
2020 ANNUAL 110.2 115.7 105.0 129.1 114.3 117.1 103.8 111.3
2020 IV 110.9 118.9 107.2 132.1 116.0 119.1 102.5 111.8
III 111.9 117.2 104.7 129.1 114.1 115.4 106.6 111.6
II 110.6 106.9 96.6 131.0 117.1 118.4 99.8 110.3
I 107.7 119.9 111.3 124.5 110.4 115.6 106.1 111.4
2019 ANNUAL 107.7 121.0 112.4 120.7 108.2 112.1 109.2 110.8
2019 IV 108.2 122.2 112.9 121.8 108.2 112.5 109.9 111.4
III 108.1 121.6 112.6 120.5 107.8 111.6 110.3 111.0
II 107.8 120.7 111.9 120.5 108.1 111.7 109.7 110.8
I 106.7 119.6 112.1 120.1 108.7 112.5 106.9 110.1
---------------------------------------------------------------------------------------------------
See footnotes following Table 6. December 7, 2021
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)
2021 III -1.8 r 5.1 r 7.0 r 2.7 r -3.7 r 4.6 r
II 8.4 r 5.8 -2.5 10.2 r 1.7 r 1.7 r
I -0.8 2.9 3.8 0.6 -3.1 1.4
2020 ANNUAL 0.1 r -6.5 r -6.6 6.8 5.4 6.6 r
2020 IV 3.2 r 11.0 7.6 10.5 7.9 7.2
III 19.4 56.2 30.8 -12.0 -16.0 -26.3
II -10.3 -44.5 -38.1 27.2 31.3 41.9
I 1.7 r -5.5 -7.2 7.8 6.7 6.0
2019 ANNUAL -1.4 -1.7 -0.2 2.8 1.0 4.3
2019 IV -2.2 r -2.0 r 0.1 6.7 4.0 9.1 r
III -1.6 r -0.5 r 1.1 -1.1 -2.4 0.4 r
II -2.0 -3.4 r -1.4 1.7 -1.7 3.8
I -0.9 r -4.0 r -3.1 6.2 5.4 7.1 r
---------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2021 III 2.2 r 6.1 r 3.9 r 5.9 r 0.6 r 3.7 r
II 7.3 17.2 9.2 1.9 r -2.8 r -5.0 r
I 2.3 -0.2 -2.5 5.6 3.7 3.2
2020 ANNUAL 0.1 r -6.5 r -6.6 6.8 5.4 6.6 r
2020 IV 3.0 -2.4 -5.2 7.5 6.2 4.4
III 1.6 r -5.4 r -6.8 6.5 5.2 4.9 r
II -3.2 r -15.4 r -12.7 9.7 9.2 13.3 r
I -1.0 r -2.9 r -1.9 3.7 1.6 4.8 r
2019 ANNUAL -1.4 -1.7 -0.2 2.8 1.0 4.3
2019 IV -1.7 r -2.5 r -0.8 3.3 1.3 5.1 r
III -1.8 -2.5 -0.7 2.3 0.5 4.2
II -1.6 r -1.7 r -0.1 3.5 1.6 5.3 r
I -0.6 r 0.1 r 0.6 2.1 0.5 2.7 r
---------------------------------------------------------------------------------------------------
Indexes 2012=100
2021 III 99.4 r 102.2 r 102.8 r 129.7 r 108.8 r 130.4 r
II 99.9 r 101.0 r 101.1 128.8 r 109.8 r 128.9 r
I 97.9 r 99.6 r 101.7 125.7 109.4 128.4 r
2020 ANNUAL 96.1 r 95.3 r 99.2 123.2 109.1 128.2 r
2020 IV 98.1 r 98.9 r 100.8 125.5 110.2 128.0 r
III 97.3 r 96.3 r 99.0 122.4 108.1 125.8 r
II 93.1 r 86.2 r 92.5 126.4 113.0 135.8 r
I 95.7 r 99.8 r 104.3 119.0 105.5 124.4 r
2019 ANNUAL 96.0 r 101.9 r 106.2 115.4 103.5 120.3 r
2019 IV 95.3 r 101.2 r 106.3 116.8 103.8 122.6 r
III 95.8 r 101.8 r 106.2 114.9 102.8 120.0 r
II 96.2 r 101.9 r 105.9 115.2 103.4 119.8 r
I 96.7 r 102.8 r 106.3 114.7 103.9 118.7 r
---------------------------------------------------------------------------------------------------
See footnotes following Table 6. December 7, 2021
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)
2021 III 0.7 r 9.7 r 8.9 r 1.7 r -4.6 r 1.0 r
II 5.6 r -0.1 -5.4 13.1 r 4.3 r 7.1 r
I 1.1 6.7 5.5 1.8 -1.9 0.7
2020 ANNUAL -0.2 -8.1 -8.0 6.8 5.5 7.0
2020 IV 4.8 11.0 6.0 12.3 9.6 7.2
III 44.6 97.9 36.9 -16.1 -19.9 -42.0
II -20.3 -54.4 -42.8 29.7 33.9 62.7
I -2.6 -10.0 -7.6 6.9 5.8 9.7
2019 ANNUAL -2.0 r -2.0 r 0.0 2.3 0.4 4.4 r
2019 IV -0.8 r -1.9 r -1.1 10.2 7.4 11.1 r
III -1.1 r -0.3 r 0.8 -2.4 -3.6 -1.3 r
II -1.2 r -3.6 r -2.4 0.9 -2.4 2.2 r
I -3.3 r -6.2 r -2.9 5.8 5.0 9.4 r
---------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2021 III 3.0 r 6.7 r 3.6 r 7.1 r 1.7 r 4.0 r
II 12.8 23.7 9.7 2.0 r -2.6 r -9.5 r
I 5.1 1.7 -3.3 5.6 3.6 0.5
2020 ANNUAL -0.2 -8.1 -8.0 6.8 5.5 7.0
2020 IV 4.1 -2.6 -6.4 6.9 5.6 2.6
III 2.7 -5.5 r -8.0 6.4 5.1 3.6
II -6.6 -20.4 -14.8 10.5 10.1 18.3
I -1.4 -4.0 -2.6 3.8 1.7 5.3
2019 ANNUAL -2.0 r -2.0 r 0.0 2.3 0.4 4.4 r
2019 IV -1.6 r -3.0 r -1.4 3.5 1.5 5.2 r
III -2.3 r -2.7 r -0.4 1.3 -0.5 3.7 r
II -2.3 r -2.0 r 0.3 2.6 0.8 5.1 r
I -1.7 r -0.4 r 1.4 1.6 0.0 3.4 r
---------------------------------------------------------------------------------------------------
Indexes 2012=100
2021 III 101.8 r 103.1 r 101.3 r 131.0 r 109.9 r 128.8 r
II 101.6 r 100.8 r 99.2 130.5 r 111.2 r 128.5 r
I 100.2 r 100.8 r 100.6 126.5 110.1 126.3 r
2020 ANNUAL 96.1 r 94.1 r 97.9 123.8 109.6 128.8 r
2020 IV 99.9 r 99.2 r 99.3 126.0 110.6 126.0 r
III 98.8 r 96.6 r 97.8 122.4 108.1 123.9 r
II 90.1 r 81.5 r 90.5 127.9 114.3 142.0 r
I 95.3 r 99.2 r 104.0 119.8 106.2 125.7 r
2019 ANNUAL 96.3 r 102.5 r 106.4 116.0 104.0 120.4 r
2019 IV 96.0 r 101.8 r 106.1 117.8 104.7 122.8 r
III 96.2 r 102.3 r 106.4 115.0 102.9 119.6 r
II 96.4 r 102.4 r 106.2 115.7 103.8 120.0 r
I 96.7 r 103.3 r 106.8 115.4 104.5 119.3 r
---------------------------------------------------------------------------------------------------
See footnotes following Table 6. December 7, 2021
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)
2021 III -3.6 r 0.3 r 4.0 4.1 r -2.3 r 8.0 r
II 9.8 12.7 r 2.6 5.8 r -2.4 r -3.7 r
I -2.1 -1.1 1.0 -2.1 -5.6 0.0
2020 ANNUAL -0.4 r -4.7 r -4.3 7.1 5.8 7.5 r
2020 IV 0.5 10.9 10.3 7.6 5.1 7.0 r
III -0.1 21.4 21.5 -4.8 -9.1 -4.8
II -3.3 -31.7 -29.4 25.2 29.3 29.5
I 6.6 -0.3 -6.4 9.8 8.7 3.1
2019 ANNUAL -0.7 r -1.3 r -0.6 3.9 2.0 4.6 r
2019 IV -4.3 r -2.1 r 2.3 0.5 -2.0 5.0 r
III -2.2 r -0.7 r 1.5 1.4 0.1 3.7 r
II -3.6 r -3.1 r 0.5 3.6 0.1 7.4 r
I 2.0 r -1.6 r -3.5 6.9 6.1 4.9 r
---------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2021 III 1.0 r 5.5 r 4.4 3.8 r -1.4 r 2.7 r
II 1.9 10.7 8.6 1.5 r -3.1 r -0.4 r
I -1.3 -2.4 -1.1 5.9 3.9 7.2
2020 ANNUAL -0.4 r -4.7 r -4.3 7.1 5.8 7.5 r
2020 IV 0.9 -2.2 -3.0 9.0 7.6 8.0
III -0.4 r -5.2 r -4.8 7.1 5.8 7.5 r
II -0.9 r -9.8 r -9.0 8.8 8.3 9.8 r
I -1.0 r -1.6 r -0.6 3.8 1.6 4.8 r
2019 ANNUAL -0.7 r -1.3 r -0.6 3.9 2.0 4.6 r
2019 IV -2.1 r -1.9 r 0.2 3.1 1.0 5.2 r
III -1.1 r -2.2 r -1.1 4.3 2.5 5.5 r
II -0.8 r -1.4 r -0.7 5.2 3.3 6.0 r
I 1.1 r 0.4 r -0.7 3.0 1.3 1.9 r
---------------------------------------------------------------------------------------------------
Indexes 2012=100
2021 III 97.3 r 102.4 r 105.3 r 127.5 r 107.0 r 131.1 r
II 98.2 r 102.3 r 104.3 126.3 r 107.6 r 128.6 r
I 95.9 r 99.3 r 103.6 124.5 108.3 129.8 r
2020 ANNUAL 96.5 r 97.7 r 101.3 122.4 108.4 126.9 r
2020 IV 96.4 r 99.6 r 103.3 125.1 109.9 129.8 r
III 96.3 r 97.1 r 100.8 122.9 108.5 127.6 r
II 96.3 r 92.5 r 96.0 124.4 111.2 129.2 r
I 97.1 r 101.7 r 104.8 117.6 104.2 121.1 r
2019 ANNUAL 96.8 r 102.5 r 105.9 114.3 102.5 118.0 r
2019 IV 95.6 r 101.8 r 106.5 114.9 102.1 120.2 r
III 96.6 r 102.3 r 105.9 114.7 102.6 118.7 r
II 97.2 r 102.5 r 105.5 114.3 102.6 117.7 r
I 98.1 r 103.4 r 105.4 113.3 102.6 115.6 r
---------------------------------------------------------------------------------------------------
See footnotes following Table 6. December 7, 2021
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.
Real
Hourly hourly Unit Total Implicit
Year Labor compen- compen- Unit nonlabor unit Unit price
and produc- Hours sation sation labor costs costs profits deflator
quarter tivity Output worked (1) (2) costs (6) (7) (8) (4)
---------------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate (5)
2021 III 0.7 6.8 6.1 5.4 -1.2 4.7 15.5 7.7 8.3 7.8
II 0.8 r 5.7 r 4.9 8.5 r 0.0 r 7.6 r -14.4 r 0.7 r 58.8 r 7.9
I 5.0 8.9 3.7 0.0 -3.6 -4.8 18.7 1.6 30.0 5.1
2020 ANNUAL 2.2 -4.2 -6.3 6.9 5.6 4.6 -10.6 -0.2 2.4 0.1
2020 IV 16.3 28.4 10.3 7.7 5.2 -7.4 53.3 6.3 -31.4 -0.2
III -0.8 31.7 32.8 -5.7 -9.9 -4.9 -21.4 -9.6 206.1 6.2
II 3.8 -39.0 -41.2 25.0 29.1 20.5 -49.3 -6.5 -9.1 -6.8
I 1.1 -3.3 -4.3 7.8 6.7 6.6 4.2 5.8 -35.4 -0.4
2019 ANNUAL 1.4 2.3 0.9 3.9 2.1 2.5 1.9 2.3 -1.2 1.9
2019 IV 1.1 2.2 1.1 3.6 1.0 2.6 -2.7 0.8 8.8 1.8
III 0.5 1.1 0.6 1.0 -0.4 0.5 5.3 2.0 2.6 2.1
II 1.3 1.6 0.3 2.3 -1.2 1.0 1.7 1.2 13.3 2.6
I 2.7 3.4 0.7 8.0 7.2 5.2 3.2 4.6 -31.2 -1.0
---------------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2021 III 5.5 12.1 6.2 5.3 0.1 -0.2 15.8 4.0 11.3 5.1
II 5.1 r 18.1 r 12.4 2.5 r -2.2 r -2.5 r 5.2 r -0.4 r 44.3 r 4.7
I 5.9 3.0 -2.8 6.2 4.2 0.2 -7.7 -2.3 25.5 1.0
2020 ANNUAL 2.2 -4.2 -6.3 6.9 5.6 4.6 -10.6 -0.2 2.4 0.1
2020 IV 4.9 -0.1 -4.7 8.2 6.9 3.1 -10.7 -1.2 5.4 -0.4
III 1.3 -5.6 -6.8 7.1 5.8 5.8 -20.3 -2.5 18.3 0.1
II 1.6 -11.6 -13.0 9.0 8.5 7.3 -14.2 0.4 -10.0 -0.9
I 1.0 0.4 -0.6 3.6 1.5 2.6 2.1 2.4 -4.9 1.5
2019 ANNUAL 1.4 2.3 0.9 3.9 2.1 2.5 1.9 2.3 -1.2 1.9
2019 IV 1.4 2.1 0.7 3.7 1.6 2.3 1.8 2.1 -3.4 1.4
III 1.1 1.7 0.7 3.5 1.7 2.4 3.2 2.6 -2.4 2.0
II 2.2 3.0 0.8 4.5 2.6 2.2 1.1 1.9 0.8 1.7
I 0.9 2.3 1.4 4.1 2.5 3.2 1.4 2.6 0.6 2.3
---------------------------------------------------------------------------------------------------------
Indexes 2012=100
2021 III 111.7 125.7 112.6 136.1 114.2 121.9 100.4 114.7 130.4 117.0
II 111.5 r 123.7 r 111.0 134.3 r 114.5 r 120.5 r 96.9 r 112.6 r 127.8 r 114.8 r
I 111.3 122.0 109.6 131.6 114.5 118.3 100.7 112.4 113.8 112.6
2020 ANNUAL 106.7 113.7 106.5 128.9 114.1 120.8 96.3 112.6 100.9 111.0
2020 IV 109.9 119.4 108.6 131.6 115.6 119.8 96.5 112.0 106.6 111.2
III 105.8 112.2 106.0 129.2 114.1 122.1 86.7 110.3 117.2 111.3
II 106.1 104.7 98.7 131.1 117.2 123.6 92.1 113.1 88.6 109.6
I 105.1 118.5 112.8 124.0 109.9 118.0 109.1 115.0 90.7 111.6
2019 ANNUAL 104.4 118.7 113.7 120.6 108.1 115.5 107.7 112.9 98.5 110.8
2019 IV 104.8 119.5 114.0 121.7 108.1 116.1 108.0 113.4 101.2 111.7
III 104.5 118.8 113.7 120.6 107.9 115.4 108.7 113.2 99.1 111.2
II 104.4 118.5 113.5 120.3 108.0 115.3 107.3 112.6 98.4 110.6
I 104.0 118.0 113.4 119.6 108.3 115.0 106.9 112.3 95.4 109.9
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6. December 7, 2021
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 -1.1 to +1.4 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 second quarter of 2021. 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 1978-2020 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
