Two BLS programs produce Labor Productivity and Costs (LPC) measures for
sectors of the U.S. economy.
The Major Sector Productivity program develops quarterly labor productivity measures for the
major U.S. economic sectors including the business sector, the nonfarm business sector,
nonfinancial corporations, and manufacturing, along with subsectors of durable and
nondurable goods manufacturing.
The Industry Productivity program develops annual labor productivity and unit labor cost measures for U.S. industries.
Indexes of labor productivity show changes in the ratio of output to hours of labor
input. These measures are used in economic analysis, public and private policymaking, and
forecasting and analysis of prices, wages, and technological change.
However, labor productivity measures should not be interpreted as presenting the
contribution of labor to production. Rather, changes over time in the output or labor
input may reflect the influence of other factors including variations in the
characteristics and efforts of the work-force, changes in the managerial skill, changes in
the organization of production, changes in the allocation of resources between sectors,
the direct and indirect effects of research and development, and new technology.
Other productivity measures produced by the Bureau of Labor Statistics include multifactor productivity measures for the major sectors of the
U.S. economy and for 18 3-digit NAICS manufacturing industries; for 86 4-digit NAICS manufacturing industries, air transportation, and
line-haul railroads. Multifactor productivity measures compare output to a combined set of inputs. These measures were developed initially in 1983 and reflect the role inputs other than labor play in output growth. Annual labor productivity measures are also available for the manufacturing sectors of nineteen foreign
countries or areas.
Description of Measures
The Bureau of Labor Statistics produces three sets of labor productivity measures:
major sector measures, selected industry measures, and foreign country measures.
For the major sectors, output, measured net of price change and inter-industry
transactions, is compared to labor input, measured as hours at work in the sector. Output
per hour and related measures of compensation per hour and unit labor costs are maintained
for business and nonfarm business from 1947 to the present. Similar measures are also
available for manufacturing (total, durable, and nondurable sectors) and for nonfinancial corporations. These measures are available
quarterly and are updated and revised eight times a year.
For selected industries, productivity and related indexes; rates of change; and levels of industry employment, hours, nominal value of production and labor compensation are maintained. These measures are updated annually.
Quarterly labor productivity measures are available for the:
- Business and nonfarm business sectors; quarterly and annual measures from 1947 to present
- Nonfinancial corporations; quarterly and annual measures from 1959 to present
- Manufacturing sector; quarterly and annual measures from 1987 to present
Annual labor productivity measures are available for:
- The mining, wholesale trade, retail trade, and accommodation and food services sectors, 1987 forward
- All 3- and 4-digit NAICS mining, manufacturing, wholesale trade, and retail trade industries, 1987 forward
- Additional selected industries in utilities, manufacturing, trade, transportation,
information, and other services, 1987 forward
- Economic indicator.
- Aid economic policymakers in assessment of current economic activity and in economic analysis.
- Aid Bureau of Economic Analysis in compiling compensation measures for National Income and Product Accounts.
- Assessment of labor requirements.
- Studies of relationships among productivity, wages, prices, and employment.
- Aid in understanding sources of economic growth.
- Output per hour of all persons and related measures, for the business, nonfarm
business, and manufacturing (total, durable, and nondurable)
sectors, as published in the Productivity and Costs
News Release. Available as quarterly and annual indexes and percent changes. Related
measures include such series as unit labor costs, real and current dollar compensation per
hour, and unit nonlabor payments. Data are for all persons engaged in the sector, as well
as for employees alone.
These data are also available as historical time series on this website.
- Output per hour of all persons and related measures, for nonfinancial
corporations, as published in the Productivity
and Costs News Release. Available as quarterly and annual indexes and percent changes.
Related measures include such series as unit labor costs, real and current dollar
compensation per hour, unit nonlabor payments, unit nonlabor costs, total unit costs, and
unit profits. Data are available for employees only for this sector. These data are also
available as historical time series on
- Annual output per hour and related measures, including unit labor costs, for selected 2-, 3-, 4-, 5-, and 6-digit NAICS industries,
as published in the Productivity and Costs by Industry News Release.
These data are available as annual indexes and percent changes on this web site. Levels of annual employment and hours, as well as nominal values of production and labor compensation by industry, are also available on this website.
Business sector output is an annual-weighted index constructed after excluding from gross domestic product (GDP) the following outputs: General government, nonprofit institutions, paid employees of private households, and the rental value of owner-occupied dwellings. Corresponding exclusions also are made in labor inputs. The nonfarm business sector output also excludes the farm sector. Gross domestic product data are prepared by the Bureau of Economic Analysis of the U.S. Department of Commerce as part of the National
Income and Product Accounts.
Annual manufacturing output indexes are constructed by deflating the current-dollar
industry value of production data from the Bureau of the Census with deflators from the
Bureau of Economic Analysis. Quarterly manufacturing output measures are based on the
index of industrial production prepared monthly by the Board of Governors of the Federal
Reserve System, adjusted to be consistent with the annual indexes of manufacturing sector
output prepared by the Bureau of Labor Statistics.
Industry output is measured as sectoral output, the total value of goods and services leaving the industry. For most industries, real output is derived by deflating nominal sales using BLS price indexes. Industry output measures are constructed primarily using data from the economic censuses and annual surveys of the U.S. Census Bureau, U.S. Department of Commerce, together with information on price changes primarily from BLS. Industry output indexes are constructed as annual-weighted indexes that aggregate the growth rates of different industry outputs.
A more thorough discussion of the output data underlying major sector and
industry labor productivity measures are
available in Chapter 10, "Productivity Measures: Business Sector and Major Subsectors," and
Chapter 11, "Industry Productivity Measures," of the BLS Handbook of Methods.
Hours and employment data for the major sector measures are primarily drawn from the BLS Current Employment
Statistics (CES) program, which provides monthly survey data on total employment and average weekly hours of production and nonsupervisory workers in nonagricultural establishments. Jobs rather than persons are counted. Weekly paid hours are adjusted to hours at work using data from the National Compensation Survey (NCS). The BLS Hours at Work Survey (HWS) PDF (12K), conducted
for this purpose, was used for years prior to 2001.( How to view a PDF file.) 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 BLS Current Population Survey are used for farm labor. In the nonfarm sector, the National Income and Product Accounts prepared by the Bureau of Economic Analysis of the Department of Commerce and the CPS are used to measure labor input for government enterprises, proprietors, and unpaid family workers. All series have been adjusted to take into account the activities of dual jobholders.
Hours and employment for the industry measures also rely primarily on data from the Current Employment Statistics (CES) survey,
supplemented with data from the Current Population Survey (CPS). Data on employment and average weekly hours are used to construct measures of total hours for different categories of workers. Employment and hours include those of paid employees, the self-employed (partners and proprietors) and unpaid family workers.
A more detailed discussion of the labor data underlying the major sector measures is available in Chapter 10, "Productivity Measures: Business Sector and Major Subsectors". For more information on the labor data underlying the industry productivity measures, see "Industry Employment and Hours".
- Productivity and related measures for the major sectors: Quarterly and annual data.
- Employment and employee-hour measures for the major sectors: Monthly, quarterly, and annual data.
- Productivity and related measures for selected industries: Annual data.
Last Modified Date: March 21, 2013