Productivity and Costs News Release

     
Transmission of material in this release is embargoed until       USDL-10-0588
8:30 a.m. (EDT) Thursday, May 6, 2010
Technical information: (202) 691-5606   dprweb@bls.gov  www.bls.gov/lpc
Media contact:         (202) 691-5902   PressOffice@bls.gov
        


                           PRODUCTIVITY AND COSTS
                        First Quarter 2010, Preliminary

Nonfarm business sector labor productivity increased at a 3.6 percent annual
rate during the first quarter of 2010, the U.S. Bureau of Labor Statistics
reported today, with output rising 4.4 percent and hours worked rising 
0.8 percent. (All quarterly percent changes in this release are seasonally
adjusted annual rates.) From the first quarter of 2009 to the first quarter of
2010, output increased 3.1 percent while hours fell 3.0 percent, yielding an 
increase in productivity of 6.3 percent (tables A and 2). This gain in 
productivity from the same quarter a year ago was the largest since output per
hour increased 7.0 percent over the four-quarter period ending in the first 
quarter of 1962. 

Labor productivity, or output per hour, is calculated by dividing an index of
real output by an index of hours of all persons, including employees, 
proprietors, and unpaid family workers. 

Unit labor costs in nonfarm businesses fell 1.6 percent in the first quarter
of 2010, as the 3.6 percent increase in productivity outpaced a 1.9 percent
gain in hourly compensation.  Unit labor costs fell 3.7 percent over the last
four quarters, as the 6.3 percent increase in productivity outpaced a 2.3 
percent rise in hourly compensation (tables A and 2). 

BLS defines 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 output per hour tend to reduce them. 

Manufacturing sector productivity grew 2.5 percent in the first quarter of 
2010, as output rose 7.5 percent and hours worked increased 4.9 percent, the
first increase in hours since the second quarter of 2007.  Gains in 
productivity, output, and hours were each larger in the durable goods sector
than in the nondurable goods sector (tables A, 3, 4 and 5).  Unit labor costs
in manufacturing declined 3.7 percent in the first quarter of 2010 and fell 
6.1 percent over the last four quarters.  The four-quarter decline was the 
largest in the series, which begins in the first quarter of 1988.

The data sources and methods used in the preparation of the manufacturing 
output series differ from those used in preparing the business and nonfarm 
business output series, and these measures are not directly comparable.  See 
Technical Notes for further information on data sources. 

Fourth quarter and annual 2009 measures of productivity and costs were 
announced for the nonfinancial corporate sector (tables C and 6). Output per
employee hour rose 8.2 percent for the fourth quarter of 2009 as output and
hours rose 8.5 percent and 0.3 percent, respectively.


Revised measures

Revised measures of real hourly compensation for all sectors for 2005 onward
reflect revisions in the consumer price series based on new and revised data 
from the BLS Office of Prices and Living Conditions.  Output data for the
manufacturing sectors incorporates revised output indexes constructed by BLS
using data from the U.S. Department of Commerce. Accordingly, manufacturing 
output, productivity and unit labor costs were revised back to 1987, the first
year in the series (appendix tables 1-3). Table B presents previous and 
revised productivity and related measures for the major sectors: business, 
nonfarm business and manufacturing, for the fourth quarter and annual 
averages of 2009.  

In the fourth quarter of 2009, nonfarm business productivity growth was 
revised down to 6.3 percent, reflecting a 0.6 percentage point downward 
revision to output and a 0.1 percentage point upward revision to hours.  After 
revision, unit labor costs fell 5.6 percent--a smaller decline than previously 
reported.  In the manufacturing sector, fourth-quarter productivity growth was
revised down slightly to 6.5 percent.

Full historical annual and quarterly measures are available on the 
productivity and costs home page: http://www.bls.gov/lpc/#data



___________

The revised Productivity and Costs press release for first-quarter 2010 is 
scheduled to be released Thursday, June 3, 2010 at 8:30 a.m. (EDT).


==============================================================================
Beginning with the Productivity and Costs news release scheduled for 
August 10, 2010, index series will be rebased from 1992=100 to 2005=100.
Also, the presentation of the data in tables 1-6 will be reformatted. In the
new format, the three panels in each table will be rearranged. The first panel
will present percent changes from the previous quarter, the second will show
percent changes from the corresponding quarter of the previous year, and the 
third will show indexes. Also, all data will be presented in reverse 
chronological order, listing the most recent data first.
==============================================================================


======================================================================================================
Table A. Preliminary first-quarter 2010 measures: percent change from previous quarter at annual rate 
(Q to Q) and from same quarter a year ago (Y to Y)

Sector                   Nonfarm                                         Durable         Nondurable
                         Business         Business       Manufacturing   Manufacturing   Manufacturing
                       Q to Q   Y to Y  Q to Q  Y to Y  Q to Q  Y to Y  Q to Q  Y to Y  Q to Q  Y to Y
------------------------------------------------------------------------------------------------------  
Productivity             3.6     6.3     3.0     6.3     2.5    7.5      3.8     9.0     2.2     5.0
Output                   4.4     3.1     4.1     3.0     7.5    3.3     10.5     3.1     4.8     3.4
Hours                    0.8    -3.0     1.1    -3.1     4.9   -3.9      6.4    -5.4     2.5    -1.6
Hourly compensation      1.9     2.3     1.7     2.4    -1.2    0.9     -1.2     1.6    -1.5     0.0
Real hourly 
 compensation            0.4    -0.1     0.2    -0.1    -2.7   -1.5     -2.7    -0.8    -3.0    -2.4
Unit labor costs        -1.6    -3.7    -1.3    -3.7    -3.7   -6.1     -4.9    -6.8    -3.7    -4.8
======================================================================================================
Table B. Revised and previous measures for: fourth quarter and annual averages 2009

Sector            Nonfarm                                             Durable           Nondurable
                  Business         Business         Manufacturing     Manufacturing     Manufacturing
              Revised Previous  Revised Previous  Revised Previous  Revised Previous  Revised Previous
------------------------------------------------------------------------------------------------------
                                Percent change, annual rate, fourth quarter 2009
                                
Productivity      6.3    6.9      6.6    7.2        6.5     6.6       7.1     6.8        6.1     6.4
Output            7.0    7.6      6.9    7.5        5.6     5.5       6.4     5.7        4.9     5.4
Hours             0.7    0.6      0.3    0.3       -0.8    -1.0      -0.7    -1.0       -1.2    -0.9
Hourly 
 compensation     0.4    0.6      0.4    0.6       -0.3    -0.1       0.2     0.6       -1.2    -1.4
Real hourly
 compensation    -2.3   -2.8     -2.2   -2.7       -3.0    -3.5      -2.5    -2.8       -3.8    -4.7
Unit labor
 costs           -5.6   -5.9     -5.8   -6.2       -6.4    -6.3      -6.4    -5.8       -6.9    -7.3
------------------------------------------------------------------------------------------------------
                                Percent change, annual average 2009
                                
Productivity      3.7    3.8      3.8    3.8        1.8     1.8      -1.6    -1.6        3.0     3.0
Output           -3.6   -3.6     -3.5   -3.5      -11.1   -11.1     -16.4   -16.5       -5.6    -5.5
Hours            -7.1   -7.1     -7.0   -7.0      -12.6   -12.6     -15.1   -15.1       -8.3    -8.3
Hourly
 compensation     1.9    2.0      1.9    1.9        4.4     4.4       5.3     5.4        3.4     3.3
Real hourly 
 compensation     2.3    2.3      2.3    2.3        4.8     4.8       5.7     5.7        3.7     3.7
Unit labor 
 costs           -1.7   -1.7     -1.8   -1.8        2.6     2.6       7.0     7.1        0.3     0.3
======================================================================================================
Table C. Nonfinancial corporations: preliminary fourth-quarter and annual average 2009 productivity
and cost measures
                                                        Real 
                                           Hourly       hourly        Unit                    Implicit
             Produc-                       compen-      compen-       labor       Unit        price
             tivity    Output     Hours    sation       sation        costs       profits     deflator
------------------------------------------------------------------------------------------------------                  
                                Percent change, annual rate, fourth quarter 2009
                                
Q to Q          8.2      8.5       0.3       0.2         -2.4          -7.4         28.7        -2.9
Y to Y          3.4     -3.2      -6.4       0.6         -0.9          -2.8         15.1        -0.2

                                Percent change, annual average 2009
                                
2009            1.9     -5.8      -7.5       2.2          2.6           0.2          1.5         1.6
======================================================================================================




        








				TECHNICAL NOTES

Labor Hours: Hours data for the labor productivity and cost measures 
include hours 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.  The CES also 
provides average weekly paid hours of production and nonsupervisory 
workers in these establishments.  Weekly paid hours are adjusted to hours 
at work using data from the National Compensation Survey (NCS).  The BLS 
Hours at Work survey, conducted for this purpose, was used for earlier 
years.  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 for farm labor, nonfarm proprietors, and 
nonfarm unpaid family workers.  Estimates of labor input 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.
     The CES measures jobs, counting a person who is employed by two or 
more establishments at each place of employment. In contrast, the CPS 
features measures of employment that count each person only once and 
classify each person according to his or her primary job; hours worked at 
all jobs by that person accrue to his or her primary job.  However, the 
CPS also collects more detailed information on employment and hours worked 
at primary jobs and all other jobs, separately.  The BLS productivity 
measures use the more detailed information on employment and hours to 
assign all hours worked to the correct industrial sector and avoid 
duplicating hours data from the CES.

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 inputs. Business output accounted for about 77 
percent of the value of GDP in 2005. Nonfarm business, which excludes 
farming, accounted for about 76 percent of GDP in 2005.
     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 
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 index 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.  Durables include the 
following 3-digit NAICS industries: wood product manufacturing; 
nonmetallic mineral product manufacturing; primary metal manufacturing; 
fabricated metal product manufacturing; machinery manufacturing; computer 
and electronic product manufacturing; electrical equipment and appliance 
manufacturing; transportation equipment manufacturing; furniture and 
related product manufacturing; and miscellaneous manufacturing. 
Nondurables include: food manufacturing; beverage and tobacco product 
manufacturing; textile mills; textile product mills; apparel 
manufacturing; leather and allied product manufacturing; paper 
manufacturing; printing and related support activities; petroleum and coal 
products manufacturing; chemical manufacturing; and plastics and rubber 
products manufacturing.
     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 50 percent of the value of GDP in 2005.
     
Productivity: These productivity measures describe the relationship 
between real output and the labor time involved in its production. They 
show the changes from period to period in the amount of goods and services 
produced per hour. Although these measures relate output to hours at work 
of all persons engaged in a sector, they do not measure the specific 
contribution of labor, capital, or any other factor of production. Rather, 
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: 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 
domestic employees 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:  The measures of unit labor costs in this release 
describe the relationship between compensation per hour and 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 index number series where 1992=100, as percent 
changes from the corresponding quarter of the previous year, and as 
percent changes from the previous quarter presented at a compound annual 
rate.  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.  These index numbers are available at the 
BLS web site, http://www.bls.gov/data/home.htm, or by contacting the BLS 
Division of Major Sector Productivity.  (Telephone 202-691-5606 or email 
DPRWEB@BLS.GOV)
      
      Information in this release will be made available to sensory-
impaired individuals upon request.  Voice phone: 202-691-5606; Federal 
Relay Service number: 1-800-877-8339.





Table 1. Business sector: Productivity, hourly compensation, unit labor costs,
and prices, seasonally adjusted
                                                           Real
   Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
   and        hour of                of all    tion per    tion per    labor    labor pay-  price
   quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator (4)
---------------------------------------------------------------------------------------------------------
                                           Indexes 1992=100

2008       I     142.8      171.7     120.3     180.3      r121.3      126.3       141.7      132.1
          II     143.8      172.2     119.8     181.0      r120.2      125.8       143.8      132.5
         III     144.3      170.6     118.2     183.6      r120.1      127.2       145.3      134.0
          IV     145.0      167.4     115.4     185.4      r124.3      127.8       143.4      133.6

      ANNUAL     144.0      170.5     118.4     182.5       121.4      126.8       143.6      133.0

2009       I     145.3      163.6     112.6     183.5      r123.6      126.2       148.0      134.3
          II     148.0      163.2     110.3     186.8      r125.4      126.2       147.7      134.2
         III     150.9      164.1     108.7     186.8      r124.2      123.8       151.9      134.3
          IV    r153.4     r166.9    r108.8    r187.0      r123.5     r121.9       155.3     r134.4

      ANNUAL    r149.4     r164.5    r110.1    r186.0      r124.2     r124.5      r150.8     r134.3

2010       I     154.5      168.6     109.1     187.8       123.6      121.6       156.6      134.6
---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

2008       I      -0.2       -1.3      -1.1       0.9       r-3.6        1.1        -0.3        0.6
          II       2.9        1.1      -1.8       1.4       r-3.6       -1.5         6.1        1.4
         III       1.4       -3.7      -5.0       5.9       r-0.4        4.5         4.1        4.3
          IV       2.1       -7.2      -9.1       4.1       r14.6        1.9        -5.2       -1.0

      ANNUAL       2.1        0.0      -2.1       3.0        -0.8        0.8         2.6        1.5

2009       I       0.9       -8.7      -9.5      -4.1       r-2.0       -5.0        13.4        2.1
          II       7.6       -1.0      -8.0       7.5        r5.7       -0.1        -0.7       -0.3
         III       8.0        2.2      -5.3       0.0       r-3.6       -7.4        11.9        0.1
          IV      r6.6       r6.9       0.3      r0.4       r-2.2      r-5.8         9.3       r0.3

      ANNUAL       3.8       -3.5      -7.0       1.9         2.3       -1.8         5.0        0.9

2010       I       3.0        4.1       1.1       1.7         0.2       -1.3         3.2        0.6
---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

2008       I       2.7        2.0      -0.7       2.9        -1.2        0.2         3.7        1.6
          II       2.7        1.4      -1.3       2.7        -1.6        0.0         3.2        1.2
         III       1.6       -0.5      -2.1       3.3       r-1.9        1.7         2.4        2.0
          IV       1.5       -2.8      -4.3       3.0         1.5        1.5         1.1        1.3

      ANNUAL       2.1        0.0      -2.1       3.0        -0.8        0.8         2.6        1.5

2009       I       1.8       -4.7      -6.4       1.7         1.9       -0.1         4.4        1.7
          II       3.0       -5.2      -7.9       3.3        r4.3        0.3         2.7        1.3
         III       4.6       -3.8      -8.0       1.8         3.4       -2.7         4.6        0.2
          IV      r5.7      r-0.3      -5.7       0.9        -0.6      r-4.6         8.3       r0.6

      ANNUAL       3.8       -3.5      -7.0       1.9         2.3       -1.8         5.0        0.9

2010       I       6.3        3.0      -3.1       2.4        -0.1       -3.7         5.8        0.2
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                       May 6, 2010
r=revised                                                              Source: Bureau of Labor Statistics




Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs,
and prices, seasonally adjusted
                                                           Real
   Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
   and        hour of                of all    tion per    tion per    labor    labor pay-  price
   quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator (4)
---------------------------------------------------------------------------------------------------------
                                           Indexes 1992=100

2008       I     141.8      172.0     121.3     179.3      r120.6      126.4       142.5      132.3
          II     142.8      172.6     120.8     179.7      r119.4      125.9       144.9      132.9
         III     143.2      170.8     119.3     182.4      r119.3      127.4       146.5      134.4
          IV     144.0      167.5     116.3     184.4      r123.6      128.1       145.1      134.3

      ANNUAL     142.9      170.7     119.4     181.4       120.7      126.9       144.7      133.5

2009       I     144.3      163.7     113.4     182.5      r123.0      126.4       150.3      135.2
          II     147.0      163.2     111.1     185.9      r124.7      126.4       150.0      135.1
         III     149.8      164.1     109.6     185.7      r123.5      124.0       154.6      135.2
          IV    r152.1     r166.9    r109.8    r185.9      r122.8     r122.2      r157.5     r135.2

      ANNUAL    r148.3     r164.5    r110.9    r185.0      r123.5     r124.7      r153.2     r135.2

2010       I     153.4      168.7     110.0     186.7       122.9      121.7       158.9      135.4
---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

2008       I      -0.5       -1.7      -1.2       1.1       r-3.5        1.6        -1.3        0.5
          II       3.0        1.3      -1.6       1.1       r-3.9       -1.9         7.1        1.6
         III       1.1       -4.0      -5.0       6.0       r-0.3        4.9         4.2        4.6
          IV       2.2       -7.6      -9.6       4.5       r15.1        2.2        -3.7       -0.2

      ANNUAL       2.0       -0.1      -2.1       3.0        -0.8        1.0         2.4        1.5

2009       I       0.9       -8.8      -9.6      -4.2       r-2.0       -5.0        15.3        2.7
          II       7.6       -1.1      -8.1       7.7        r5.8        0.1        -0.9       -0.3
         III       7.8        2.2      -5.3      -0.4       r-3.9       -7.6        13.0        0.4
          IV      r6.3       r7.0      r0.7      r0.4       r-2.3      r-5.6         7.7      r-0.2

      ANNUAL      r3.7       -3.6      -7.1      r1.9         2.3       -1.7         5.8        1.3

2010       I       3.6        4.4       0.8       1.9         0.4       -1.6         3.6        0.6
---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

2008       I       2.5        1.9      -0.6       2.8        -1.3        0.3         3.1        1.4
          II       2.7        1.3      -1.4       2.8       r-1.5        0.1         2.8        1.1
         III       1.6       -0.7      -2.2       3.5       r-1.7        1.9         2.2        2.0
          IV       1.4       -3.0      -4.4       3.1         1.6        1.7         1.5        1.6

      ANNUAL       2.0       -0.1      -2.1       3.0        -0.8        1.0         2.4        1.5

2009       I       1.8       -4.8      -6.5       1.8        r1.9        0.0         5.5        2.2
          II       2.9       -5.4      -8.1       3.4         4.4        0.5         3.5        1.7
         III       4.6       -3.9      -8.2       1.8        r3.5       -2.7         5.6        0.6
          IV      r5.6      r-0.3     r-5.6       0.8       r-0.7      r-4.6         8.6        0.6

      ANNUAL      r3.7       -3.6      -7.1      r1.9         2.3       -1.7         5.8        1.3

2010       I       6.3        3.1      -3.0       2.3        -0.1       -3.7         5.7        0.1
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                       May 6, 2010
r=revised                                                              Source: Bureau of Labor Statistics





Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
                                                                            Real
     Year           Output per                  Hours       Compensa-       compensa-      Unit 
     and            hour of                     of all      tion per        tion per       labor
     quarter        all persons     Output      persons     hour (1)        hour (2)       costs
--------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

2008       I           r182.9       r150.1         82.1        175.6         r118.1         r96.0
          II           r181.1       r148.1         81.8        176.1         r117.0         r97.3
         III           r181.0       r144.6         79.9        179.2         r117.3         r99.1
          IV           r179.7       r137.4         76.5        185.4         r124.2        r103.1

      ANNUAL           r181.2       r145.1         80.1        179.0          119.0         r98.8

2009       I           r178.4       r129.2         72.4        185.0         r124.7        r103.7
          II           r181.3       r126.5         69.8        187.8         r126.0        r103.6
         III           r187.6       r129.3         68.9        187.4         r124.6         r99.9
          IV           r190.6       r131.1        r68.7       r187.2         r123.7         r98.2

      ANNUAL           r184.4       r129.0        r70.0       r186.9         r124.8        r101.3

2010       I            191.8        133.5         69.6        186.7          122.8          97.3
--------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

2008       I              0.8         -1.2         -2.0         -1.7          r-6.2          -2.5
          II             -3.9         -5.2         -1.4          1.3          r-3.7           5.3
         III             -0.3         -9.3         -9.0          7.2           r0.8           7.6
          IV             -2.7        -18.4        -16.1         14.3          r25.9          17.5

      ANNUAL             r1.1        r-3.0         -4.0          3.1           -0.7          r2.0

2009       I             -2.9        -21.7        -19.4         -0.8           r1.4           2.1
          II              6.6         -8.1        -13.8          6.3           r4.5         r-0.3
         III             14.8          9.0         -5.1         -1.0          r-4.5         -13.7
          IV             r6.5         r5.6        r-0.8        r-0.3          r-3.0         r-6.4

      ANNUAL              1.8        -11.1        -12.6          4.4            4.8           2.6

2010       I              2.5          7.5          4.9         -1.2           -2.7          -3.7
--------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

2008       I             r3.5         r1.5         -2.0          1.6          r-2.4         r-1.8
          II              1.9        r-0.8         -2.7          2.3           -1.9          r0.3
         III              0.4         -3.9         -4.3          3.7           -1.5           3.3
          IV             -1.5         -8.7         -7.3          5.1            3.5           6.7

      ANNUAL             r1.1        r-3.0         -4.0          3.1           -0.7          r2.0

2009       I             -2.4        -13.9        -11.7          5.4           r5.5           8.0
          II              0.1        -14.6        -14.7          6.6            7.7           6.5
         III              3.7        -10.6        -13.8          4.6            6.2           0.8
          IV              6.1         -4.6        -10.1         r1.0          r-0.5         r-4.8

      ANNUAL              1.8        -11.1        -12.6          4.4            4.8           2.6

2010       I              7.5          3.3         -3.9          0.9           -1.5          -6.1
--------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                May 6, 2010
r=revised                                                       Source: Bureau of Labor Statistics




Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
                                                                            Real
     Year           Output per                  Hours       Compensa-       compensa-      Unit 
     and            hour of                     of all      tion per        tion per       labor
     quarter        all persons     Output      persons     hour (1)        hour (2)       costs
--------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

2008       I           r213.8       r185.6         86.8        169.4         r114.0         r79.2
          II           r210.3       r182.1         86.6        170.2         r113.1         r80.9
         III           r213.1       r178.4         83.7        174.0         r113.9         r81.7
          IV           r206.2       r165.4         80.2        179.4         r120.3         r87.0

      ANNUAL           r210.9       r177.9         84.4        173.1          115.1         r82.1

2009       I           r200.2       r150.4         75.1        179.5         r120.9         r89.6
          II           r201.7       r143.9         71.3        184.2         r123.6         r91.3
         III           r212.5       r149.0         70.1        182.8         r121.6         r86.0
          IV           r216.2       r151.3        r70.0       r182.9         r120.8         r84.6

      ANNUAL           r207.5       r148.6        r71.6       r182.3         r121.7         r87.9

2010       I            218.2        155.1         71.1        182.4          120.0          83.6
--------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

2008       I             -1.0         -0.9          0.1         -3.6          r-7.9          -2.6
          II             -6.5         -7.3         -0.8          1.9          r-3.1           9.0
         III              5.5         -7.9        -12.7          9.4           r2.8           3.7
          IV            -12.3        -26.2        -15.9         13.0          r24.4         r28.9

      ANNUAL             r1.1        r-3.2         -4.2          2.9           -0.9          r1.8

2009       I            -11.1        -31.6        -23.0          0.1           r2.3          12.6
          II              3.0        -16.1        -18.6         11.0           r9.0           7.7
         III            r23.2        r14.8         -6.8         -2.9          r-6.4        r-21.2
          IV             r7.1         r6.4        r-0.7         r0.2          r-2.5         r-6.4

      ANNUAL             -1.6       r-16.4        -15.1         r5.3            5.7          r7.0

2010       I              3.8         10.5          6.4         -1.2           -2.7          -4.9
--------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

2008       I             r4.9         r2.9         -1.9          0.9           -3.2         r-3.8
          II             r2.0        r-0.6         -2.5          2.2           -2.0          r0.2
         III             r1.5         -3.7         -5.1          3.9          r-1.3          r2.4
          IV             -3.8        -11.1         -7.6          5.0            3.4           9.1

      ANNUAL             r1.1        r-3.2         -4.2          2.9           -0.9          r1.8

2009       I             -6.4        -19.0        -13.5          6.0           r6.1          13.2
          II             -4.1        -21.0        -17.6          8.2            9.3          12.8
         III             -0.3        -16.5        -16.3          5.1           r6.8          r5.3
          IV             r4.9        r-8.5       r-12.7         r1.9           r0.5         r-2.8

      ANNUAL             -1.6       r-16.4        -15.1         r5.3            5.7          r7.0

2010       I              9.0          3.1         -5.4          1.6           -0.8          -6.8
--------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                May 6, 2010
r=revised                                                       Source: Bureau of Labor Statistics




Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
                                                                            Real
     Year           Output per                  Hours       Compensa-       compensa-      Unit 
     and            hour of                     of all      tion per        tion per       labor
     quarter        all persons     Output      persons     hour (1)        hour (2)       costs
--------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

2008       I           r154.4       r115.7         74.9        185.2         r124.6        r120.0
          II           r154.1       r114.9         74.5        185.2         r123.0        r120.1
         III           r150.7       r111.7         74.1        187.0         r122.4        r124.1
          IV           r153.7       r108.8         70.8        194.5         r130.3        r126.6

      ANNUAL           r153.2       r112.8         73.6        187.9          124.9        r122.6

2009       I           r154.5       r105.7         68.4        193.7         r130.5        r125.4
          II           r156.6       r105.6         67.5        193.5         r129.8        r123.6
         III           r159.0       r106.6         67.1        195.0         r129.7        r122.7
          IV           r161.3       r107.9        r66.9       r194.4         r128.4        r120.5

      ANNUAL           r157.8       r106.5        r67.5       r194.2         r129.6        r123.0

2010       I            162.2        109.2         67.3        193.7          127.4         119.4
--------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

2008       I              4.4         -1.4         -5.5          1.6          r-3.0          -2.7
          II             -0.6         -2.8         -2.3          0.0          r-4.9           0.6
         III             -8.5        -10.6         -2.3          4.1          r-2.1          13.8
          IV              8.0         -9.9        -16.6         16.9          r28.8           8.3

      ANNUAL             r0.9        r-2.8         -3.7          3.6           -0.3          r2.6

2009       I              2.1        -11.1        -12.9         -1.6           r0.6          -3.6
          II              5.7          0.0         -5.4         -0.4          r-2.2          -5.8
         III              6.2         r3.8         -2.2          3.2          r-0.5         r-2.8
          IV             r6.1         r4.9        r-1.2        r-1.2          r-3.8         r-6.9

      ANNUAL              3.0        r-5.6         -8.3         r3.4            3.7           0.3

2010       I              2.2          4.8          2.5         -1.5           -3.0          -3.7
--------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

2008       I             r2.2         r0.0         -2.2          3.1           -1.1          r0.8
          II             r2.1        r-1.0         -3.0          2.4           -1.8          r0.3
         III            r-1.2         -4.0         -2.8          3.4          r-1.8           4.7
          IV              0.6         -6.3         -6.9          5.4           r3.8           4.8

      ANNUAL             r0.9        r-2.8         -3.7          3.6           -0.3          r2.6

2009       I              0.1         -8.7         -8.7          4.6            4.8           4.5
          II              1.6         -8.0         -9.5          4.5            5.5           2.8
         III              5.5         -4.5         -9.4          4.3           r6.0          -1.1
          IV             r5.0        r-0.8         -5.5         r0.0           -1.5         r-4.8

      ANNUAL              3.0        r-5.6         -8.3         r3.4            3.7           0.3

2010       I              5.0          3.4         -1.6          0.0           -2.4          -4.8
--------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                May 6, 2010
r=revised                                                       Source: Bureau of Labor Statistics




Table 6. Nonfinancial corporate sector: Productivity, hourly compensation, unit labor costs, unit profits,
and prices, seasonally adjusted
              Output                      Hourly    Real                Unit     Total    Unit   Implicit
    Year      per all-                    compen-   hourly     Unit     non-     unit     pro-   price
    and       employee          Employee  sation    compen-    labor    labor    costs    fits   deflator
    quarter   hour      Output  hours      (1)      sation(2)  costs    costs(6) (7)      (8)      (4)
----------------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

2007       I    143.6    175.1     122.0    164.3    r115.2     114.4    123.1    116.8    171.2    121.8
          II    144.3    176.5     122.3    165.0    r114.3     114.4    124.9    117.2    171.8    122.2
         III    144.0    175.8     122.1    166.1    r114.4     115.3    127.4    118.6    155.6    122.0
          IV    146.2    178.5     122.1    168.6    r114.8     115.3    127.9    118.7    149.9    121.6

      ANNUAL    144.5    176.5     122.1    166.0     114.6     114.9    125.8    117.8    162.1    121.9

2008       I    145.0    176.9     122.0    168.7    r113.5     116.3    129.1    119.8    133.0    121.0
          II    147.3    178.8     121.3    169.7    r112.7     115.1    129.2    118.9    134.7    120.4
         III    149.1    178.4     119.7    172.4    r112.8     115.6    129.8    119.4    145.3    121.8
          IV    149.2    174.6     117.0    175.0    r117.3     117.3    134.1    121.8    129.5    122.5

      ANNUAL    147.6    177.2     120.0    171.4     114.0     116.1    130.5    120.0    135.7    121.4

2009       I    146.6    166.6     113.7    173.2    r116.7     118.1    139.1    123.8    127.5    124.1
          II    149.9    166.4     111.0    175.4    r117.7     117.1    138.0    122.7    133.8    123.7
         III    151.3    165.7     109.5    175.9    r116.9     116.3    135.7    121.5    140.0    123.2
          IV    154.3    169.1     109.6    176.0     116.2     114.1    134.5    119.5    149.1    122.2

      ANNUAL    150.5    167.0     111.0    175.1     116.9     116.4    136.8    121.9    137.6    123.3
----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

2007       I     -0.6      0.2       0.8      3.9     r-0.1       4.5      7.5      5.3    -10.2      3.2
          II      2.0      3.2       1.2      1.7     r-2.9      -0.3      5.8      1.4      1.5      1.4
         III     -0.8     -1.5      -0.7      2.6      r0.2       3.4      8.2      4.8    -32.7     -0.7
          IV      6.3      6.2      -0.1      6.3      r1.4       0.0      1.5      0.5    -13.8     -1.3

      ANNUAL      1.0      1.7       0.7      3.6       0.7       2.6      5.8      3.5     -9.9      1.7

2008       I     -3.2     -3.6      -0.4      0.1     r-4.4       3.5      3.9      3.6    -38.0     -1.9
          II      6.6      4.4      -2.1      2.3     r-2.7      -4.0      0.5     -2.7      5.0     -2.0
         III      4.9     -0.8      -5.4      6.5      r0.1       1.6      1.8      1.6     35.5      4.8
          IV      0.2     -8.3      -8.5      6.3     r17.1       6.1     13.9      8.3    -37.0      2.4

      ANNUAL      2.2      0.4      -1.7      3.2      -0.6       1.1      3.7      1.8    -16.3     -0.4

2009       I     -6.8    -17.1     -11.0     -4.1     r-2.0       2.9     15.8      6.6     -5.8      5.3
          II      9.2     -0.6      -9.0      5.3      r3.5      -3.6     -3.2     -3.5     21.0     -1.3
         III      3.9     -1.7      -5.4      1.0     r-2.6      -2.8     -6.5     -3.9     19.9     -1.8
          IV      8.2      8.5       0.3      0.2      -2.4      -7.4     -3.4     -6.2     28.7     -2.9

      ANNUAL      1.9     -5.8      -7.5      2.2       2.6       0.2      4.8      1.6      1.5      1.6
----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

2007       I      0.3      1.4       1.1      3.3       0.8       2.9      5.5      3.7     -3.0      2.8
          II      1.6      2.6       1.0      3.6       0.9       2.0      5.0      2.8     -2.2      2.1
         III      0.4      0.9       0.5      3.9       1.6       3.5      7.0      4.5    -18.7      1.1
          IV      1.7      2.0       0.3      3.6      -0.4       1.9      5.7      3.0    -14.7      0.6

      ANNUAL      1.0      1.7       0.7      3.6       0.7       2.6      5.8      3.5     -9.9      1.7

2008       I      1.0      1.0       0.0      2.7      -1.5       1.7      4.8      2.6    -22.3     -0.6
          II      2.1      1.3      -0.8      2.8      -1.4       0.7      3.5      1.5    -21.6     -1.5
         III      3.5      1.5      -2.0      3.8      -1.4       0.2      1.9      0.7     -6.6     -0.1
          IV      2.0     -2.2      -4.1      3.8       2.2       1.7      4.9      2.6    -13.6      0.8

      ANNUAL      2.2      0.4      -1.7      3.2      -0.6       1.1      3.7      1.8    -16.3     -0.4

2009       I      1.1     -5.8      -6.8      2.7      r2.8       1.6      7.7      3.4     -4.1      2.6
          II      1.7     -6.9      -8.5      3.4       4.4       1.7      6.8      3.2     -0.7      2.8
         III      1.5     -7.1      -8.5      2.1       3.7       0.6      4.5      1.7     -3.7      1.1
          IV      3.4     -3.2      -6.4      0.6      -0.9      -2.8      0.3     -1.9     15.1     -0.2

      ANNUAL      1.9     -5.8      -7.5      2.2       2.6       0.2      4.8      1.6      1.5      1.6
----------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                        May 6, 2010
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.  
Compensation and hours data are from the Bureau of Labor Statistics and 
the Bureau of Economic Analysis.

RELIABILITY:  Productivity and cost measures are regularly revised as 
more complete information becomes available.  The measures are first 
published within 40 days of the close of the reference period; revisions 
appear 30 days later, and second revisions after an additional 60 days.  
In the business sector, the third publication (second revision) of a 
quarterly index of output per hour of all persons has differed from the 
initial value by between -1.5 and +1.5 index points approximately 95 
percent of the time.  This interval is based on the performance of this 
measure between the fourth quarter of 1995 and the fourth quarter of 
2009.



			Footnotes, Tables 1-6
						
(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 1978-2009 is based on 
the Consumer Price Index research 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 
average 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 adjustments.






Appendix table 1.
 Manufacturing sector: Productivity, hourly compensation, and unit labor costs
 Indexes 1992=100
                                                                             Real
                     Output per                  Hours       Compensa-       compensa-      Unit 
                     hour of                     of all      tion per        tion per       labor
       Year          all persons    Output       persons     hour (1)        hour (2)       costs
  -----------------------------------------------------------------------------------------------
       1987            r89.0        r92.4        103.8         80.6            97.2        r90.5
       1988            r90.9        r97.2        106.9         83.5            97.1        r91.8
       1989            r91.9        r98.8        107.6         86.0            95.9        r93.6

       1990            r93.9        r98.5        104.9         90.1            95.7        r96.0
       1991            r96.3         96.8        100.5         95.5            97.9        r99.1
       1992            100.0        100.0        100.0        100.0           100.0        100.0
       1993           r102.6       r103.9        101.3        102.3            99.8        r99.7
       1994           r106.2       r110.1        103.7        104.8           100.1        r98.7

       1995           r111.0       r115.9        104.4        106.5            99.3        r95.9
       1996           r115.1       r119.8        104.2        108.3            98.4        r94.1
       1997           r121.3       r128.7        106.0        110.9            98.7        r91.4
       1998           r127.9       r135.3        105.8        117.8           103.4        r92.1
       1999           r133.7       r140.5        105.1        123.0           105.7        r92.0

       2000           r139.2       r144.3        103.7        132.5           110.2        r95.2
       2001           r141.4       r137.0         96.9        137.5           111.2        r97.3
       2002           r151.1       r136.1         90.1        145.1           115.5        r96.0
       2003           r160.6       r137.5         85.6        156.7           122.0        r97.6
       2004           r164.3       r140.0         85.2        157.9           119.7        r96.1

       2005           r172.0       r144.9         84.3        163.2           119.7        r94.9
       2006           r173.4       r147.2         84.9        166.4           118.2        r96.0
       2007           r179.2       r149.5         83.4        173.5           119.9        r96.8
       2008           r181.2       r145.1         80.1        179.0           119.0        r98.8
       2009           r184.4       r129.0        r70.0       r186.9          r124.8       r101.3
 ----------------------------------------------------------------------------------------------
 See footnotes following Table 6.                            May 6, 2010
 r=revised                                                   Source: Bureau of Labor Statistics




Appendix table 2.
 Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs
 Indexes 1992=100
                                                                             Real
                     Output per                  Hours       Compensa-       compensa-      Unit 
                     hour of                     of all      tion per        tion per       labor
       Year          all persons    Output       persons     hour (1)        hour (2)       costs
  -----------------------------------------------------------------------------------------------
       1987            r88.5        r94.2        106.5         80.7            97.3        r91.1
       1988            r90.4       r100.0        110.6         82.9            96.5        r91.7
       1989            r91.2       r101.1        110.9         85.4            95.2        r93.6

       1990            r92.9        r99.8        107.4         89.1            94.7        r95.9
       1991            r94.6        r96.0        101.4         94.8            97.2       r100.2
       1992            100.0        100.0        100.0        100.0           100.0        100.0
       1993           r103.9       r105.4        101.4        102.0            99.5        r98.1
       1994           r109.1       r114.2        104.7        104.5            99.9        r95.8

       1995           r115.9       r123.3        106.3        105.3            98.2        r90.8
       1996           r122.1       r131.0        107.3        106.4            96.7        r87.2
       1997           r130.5       r144.0        110.4        108.3            96.3        r83.0
       1998           r140.5       r156.0        111.0        115.3           101.1        r82.0
       1999           r150.6       r166.4        110.5        120.3           103.4        r79.9

       2000           r158.0       r173.5        109.8        129.8           107.9        r82.2
       2001           r158.9       r162.0        101.9        133.6           108.0        r84.0
       2002           r170.9       r159.8         93.5        140.1           111.5        r82.0
       2003           r183.2       r162.2         88.5        153.0           119.1        r83.5
       2004           r186.4       r166.1         89.1        152.5           115.6        r81.8

       2005           r196.1       r174.4         89.0        157.2           115.3        r80.2
       2006           r200.0       r179.9         89.9        160.7           114.1        r80.4
       2007           r208.6       r183.7         88.1        168.2           116.2        r80.6
       2008           r210.9       r177.9         84.4        173.1           115.1        r82.1
       2009           r207.5       r148.6        r71.6       r182.3          r121.7        r87.9
 ----------------------------------------------------------------------------------------------
 See footnotes following Table 6.                            May 6, 2010
 r=revised                                                   Source: Bureau of Labor Statistics



Appendix table 3.
 Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs
 Indexes 1992=100
                                                                             Real
                     Output per                  Hours       Compensa-       compensa-      Unit 
                     hour of                     of all      tion per        tion per       labor
       Year          all persons    Output       persons     hour (1)        hour (2)       costs
  -----------------------------------------------------------------------------------------------
       1987            r91.3        r91.0         99.7         79.8            96.3        r87.4
       1988            r93.2        r94.4        101.4         83.6            97.2        r89.7
       1989            r94.0        r96.4        102.5         86.3            96.3        r91.8

       1990            r96.0        r97.1        101.1         91.4            97.1        r95.3
       1991            r98.3        r97.4         99.1         96.4            98.9        r98.1
       1992            100.0        100.0        100.0        100.0           100.0        100.0
       1993           r101.2       r102.4        101.2        102.7           100.3       r101.6
       1994           r103.5       r105.7        102.1        105.0           100.4       r101.5

       1995           r106.2       r107.7        101.5        108.1           100.9       r101.8
       1996           r108.4       r107.8         99.4        110.8           100.7       r102.3
       1997           r112.8       r112.2         99.5        114.7           102.1       r101.7
       1998           r115.8       r113.4         97.9        121.0           106.2       r104.5
       1999           r117.0       r113.3         96.9        126.3           108.5       r107.9

       2000           r120.8       r114.2         94.5        135.4           112.6       r112.1
       2001           r123.7       r110.5         89.4        143.2           115.9       r115.8
       2002           r130.7       r110.9         84.8        153.2           121.9       r117.2
       2003           r137.0       r111.4         81.3        162.2           126.3       r118.4
       2004           r141.9       r112.6         79.4        166.5           126.3       r117.3

       2005           r148.8       r114.8         77.2        172.5           126.6       r115.9
       2006           r148.5       r114.7         77.3        175.1           124.4       r117.9
       2007           r151.8       r116.0         76.4        181.4           125.3       r119.5
       2008           r153.2       r112.8         73.6        187.9           124.9       r122.6
       2009           r157.8       r106.5        r67.5       r194.2          r129.6       r123.0
 ----------------------------------------------------------------------------------------------
 See footnotes following Table 6.                            May 6, 2010
 r=revised                                                   Source: Bureau of Labor Statistics


Last Modified Date: May 06, 2010