Productivity and Costs News Release

Internet address:       http://www.bls.gov/lpc/   USDL 09-0587
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  information:          (202) 691-5606            MATERIAL IS EMBARGOED
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Media contact:          (202) 691-5902            THURSDAY, JUNE 4, 2009.


                      PRODUCTIVITY AND COSTS
                    First Quarter 2009, Revised


        The Bureau of Labor Statistics of the U.S. Department of 
Labor today reported revised productivity data--as measured by 
output per hour of all persons--for the first quarter of 2009.  
The revised seasonally adjusted annual rates of productivity 
change in the first quarter were:

         1.8 percent in the business sector and
         1.6 percent in the nonfarm business sector.
         
In both sectors, the first-quarter productivity gains were greater 
than the preliminary estimates reported on May 7, due solely to 
revisions to output growth. 

        In manufacturing, the revised productivity changes in the 
first quarter were:

        -2.7 percent in manufacturing,
       -10.4 percent in durable goods manufacturing, and
         1.9 percent in nondurable goods manufacturing.
         
        Manufacturing productivity in the first quarter of 2009 fell 
at a slower rate than was reported on May 7.  Output and hours in 
manufacturing, which includes about 11 percent of U.S. business-
sector employment, tend to vary more from quarter to quarter than 
data for the aggregate business and nonfarm business sectors.  
First-quarter measures are summarized in table A and appear in 
detail in tables 1 through 5.  

        The data sources and methods used in the preparation of the 
manufacturing series differ from those used in preparing the 
business and nonfarm business series, and these measures are not 
directly comparable.  Output measures for business and nonfarm 
business are based on measures of gross domestic product prepared 
by the Bureau of Economic Analysis of the U.S. Department of 
Commerce.  Quarterly output measures for manufacturing reflect 
indexes of industrial production prepared by the Board of 
Governors of the Federal Reserve System.  See Technical Notes for 
further information on data sources.

------------------------------------------------------------------------------
Table A. Productivity and costs: Revised first-quarter 2009 measures
(Seasonally adjusted annual rates)
------------------------------------------------------------------------------
                                                               Real
                                                     Hourly    hourly    Unit
                        Produc-                      compen-   compen-   labor
Sector                  tivity    Output   Hours     sation    sation    costs
------------------------------------------------------------------------------          
                        Percent change from preceding quarter
                        
Business                 1.8      -7.2     -8.8        4.5      7.0       2.7
Nonfarm business         1.6      -7.6     -9.0        4.6      7.1       3.0
Manufacturing           -2.7     -21.7    -19.5       13.4     16.1      16.6
  Durable              -10.4     -31.0    -23.0       15.8     18.6      29.3
  Nondurable             1.9     -11.6    -13.2       10.1     12.8       8.1

------------------------------------------------------------------------------     
                        Percent change from same quarter a year ago
                
Business                 2.0      -3.8     -5.7        4.1      4.3       2.0
Nonfarm business         1.9      -4.0     -5.8        4.1      4.3       2.2
Manufacturing           -3.2     -13.9    -11.0        8.4      8.7      12.0
  Durable               -6.9     -18.8    -12.8        9.5      9.7      17.6
  Nondurable            -0.8      -8.8     -8.0        6.9      7.1       7.8
------------------------------------------------------------------------------   


Business

        Business sector productivity grew 1.8 percent in the first 
quarter of 2009 as output decreased 7.2 percent and hours worked 
by all persons--employees, proprietors, and unpaid family workers-
-decreased 8.8 percent (seasonally adjusted annual rates).  The 
decrease in hours was the largest since a decline of 12.1 percent 
in the first quarter of 1975.  From the first quarter of 2008 to 
the first quarter of 2009, productivity has increased 2.0 percent, 
with output and hours falling 3.8 percent and 5.7 percent, 
respectively (tables A and 1).  This productivity growth rate was 
lower than the 2.5 percent average annual rate from 2000 to 2007.

        Hourly compensation increased at a 4.5 percent annual rate in 
the first quarter of 2009.  This measure of compensation includes 
wages and salaries, supplements, employer contributions to 
employee benefit plans, and taxes.  Real hourly compensation, 
which takes into account changes in consumer prices, rose 7.0 
percent in the first quarter of 2009.

      The change in unit labor costs approximates the change in 
hourly compensation less the change in productivity.  In the first 
quarter of 2009 these costs grew at a 2.7 percent annual rate, 
higher than the 2.0 percent rate from the first quarter of 2008 to 
the first quarter of 2009 and the 1.4 percent average annual rate 
from 2000 to 2007.  The implicit price deflator for business 
output, which reflects changes in both unit labor costs and unit 
nonlabor payments, grew 2.2 percent in the first quarter of 2009. 


Nonfarm Business

        During the first quarter of 2009, productivity rose 1.6 
percent in the nonfarm business sector; output fell 7.6 percent 
and hours of all persons fell 9.0 percent (seasonally-adjusted 
annual rates).  The decrease in hours, 9.0 percent, was the 
largest since the first quarter of 1975, when hours fell 12.0 
percent.  Over the last four quarters, productivity in the nonfarm 
business sector grew 1.9 percent (tables A and 2). This growth 
rate was lower than the 2.5 percent average rate of growth from 
2000 to 2007.

        Hourly compensation increased at a 4.6 percent annual rate in 
the nonfarm business sector in the first quarter of 2009.  The 
measure increased 4.5 percent in the fourth quarter, as revised.  
When hourly compensation is adjusted for the fall in consumer 
prices, real hourly compensation grew 7.1 percent in the first 
quarter of 2009.

      Unit labor costs rose 3.0 percent in the first quarter of 
2009.  The percent change from the same quarter a year ago was 2.2 
percent.  The implicit price deflator for nonfarm business output 
increased 2.8 percent in the first quarter of 2009.
      
    
Manufacturing

        Productivity decreased at a 2.7 percent annual rate in the 
manufacturing sector during the first quarter of 2009, reflecting 
a 21.7 percent decrease in output and a 19.5 percent decrease in 
hours (tables A and 3). These were the largest-ever declines in 
the output and hours series, which begin with data for the second 
quarter of 1987.  Over the last four quarters, manufacturing 
productivity fell 3.2 percent, the largest four-quarter decline in 
the series (tables A and 3).  This contrasts with the 3.7 percent 
average annual increase from 2000 to 2007.  In the durable goods 
manufacturing subsector, output declined 31.0 percent and hours 
fell 23.0 percent, yielding a productivity decline of 10.4 
percent.  In nondurable goods industries, productivity rose 1.9 
percent as the decline in output of 11.6 percent was less than the 
13.2 percent decline in hours.  

        Hourly compensation in manufacturing grew 13.4 percent during 
the first quarter of 2009, reflecting a 15.8 percent rise in 
durable goods industries and a 10.1 percent rise in the nondurable 
goods industries (seasonally-adjusted annual rates).  Real hourly 
compensation, which takes into account changes in consumer prices, 
increased 16.1 percent for all manufacturing workers.

        Unit labor costs rose 16.6 percent in manufacturing during 
the first quarter of 2009, after increasing 17.1 percent in the 
fourth quarter of 2008.  Over the last four quarters total 
manufacturing unit labor costs increased 12.0 percent, the largest 
increase in the series.  

   
Nonfinancial Corporations

      Preliminary first-quarter 2009 measures of productivity and 
costs for nonfinancial corporations also were announced today 
(tables B and 6).  Productivity decreased 2.1 percent in the first 
quarter as output fell 12.3 percent and hours fell 10.4 percent 
(seasonally adjusted annual rates).  The decline in output was the 
largest in the series, which begins in the second quarter of 1958.  
The hours decline was the largest since a 13.9 percent decline in 
the first quarter of 1975.  From the first quarter of 2008 to the 
first quarter of 2009 productivity grew 2.0 percent; it had grown 
at a 2.7 percent annual rate from 2000 to 2007.  The nonfinancial 
corporate sector includes all corporations doing business in the 
United States, except those classified as depository institutions, 
nondepository institutions, security and commodity brokers, 
insurance carriers, regulated investment offices, small business 
investment offices, and real estate investment trusts.


------------------------------------------------------------------------------
Table B.  Nonfinancial corporations: Preliminary first-quarter 2009 
productivity and costs measures
(Seasonally adjusted annual rates)
------------------------------------------------------------------------------
                                           Real
                                  Hourly   hourly   Unit              Implicit
         Produc-                  compen-  compen-  labor   Unit      price
Period   tivity   Output  Hours   sation   sation   costs   profits   deflator
------------------------------------------------------------------------------                                                          
                   Percent change from preceding quarter
                   
2009 I    -2.1    -12.3   -10.4    6.3      8.8      8.5     -20.5      6.4
------------------------------------------------------------------------------
                   Percent change from same quarter a year ago
                
2009 I     2.0     -4.1    -5.9    5.0      5.2      3.0      -9.7      2.8
------------------------------------------------------------------------------

      Hourly compensation increased 6.3 percent during the first 
quarter of 2009; real hourly compensation increased 8.8 percent, 
after accounting for the decline in prices.  Unit labor costs in 
nonfinancial corporations rose 8.5 percent in the first quarter of 
2009, and 3.0 percent over the last four quarters.  



Revised Measures

        Previous and revised measures for the first quarter of 2009 
in the business, nonfarm business, and manufacturing sectors are 
compared in table C.  In the business, nonfarm business, and 

------------------------------------------------------------------------------
Table C. Previous and revised productivity and related measures
(Quarterly percent changes at seasonally adjusted annual rates)
------------------------------------------------------------------------------
                                                               Real
                                                     Hourly    hourly    Unit
                        Produc-                      compen-   compen-   labor
Sector                  tivity    Output   Hours     sation    sation    costs
------------------------------------------------------------------------------                                          
                                First quarter 2009
Business:                                               
  Previous                1.1     -7.8     -8.8        4.1       6.6      2.9
  Revised                 1.8     -7.2     -8.8        4.5       7.0      2.7
Nonfarm business:                                               
  Previous                0.8     -8.2     -9.0        4.1       6.6      3.3
  Revised                 1.6     -7.6     -9.0        4.6       7.1      3.0
Manufacturing:                                          
  Previous               -3.4    -22.4    -19.7       12.8      15.5     16.7
  Revised                -2.7    -21.7    -19.5       13.4      16.1     16.6
------------------------------------------------------------------------------    
                                Fourth quarter 2008
Business:                                               
  Previous               -0.5     -8.5     -8.0        4.9      14.4      5.4
  Revised                -0.5     -8.5     -8.0        4.2      13.7      4.8
Nonfarm business:                                               
  Previous               -0.6     -8.8     -8.3        5.2      14.8      5.7
  Revised                -0.6     -8.8     -8.3        4.5      14.0      5.1
Manufacturing:                                          
  Previous               -4.2    -18.0    -14.4       10.1      20.2     15.0
  Revised                -4.6    -18.3    -14.4       11.8      22.0     17.1
------------------------------------------------------------------------------    
                                Annual average 2008
Business:                                               
  Previous                2.7      0.8     -1.9        3.6      -0.2      0.9
  Revised                 2.7      0.8     -1.9        3.6      -0.2      0.9
Nonfarm business:                                               
  Previous                2.8      0.8     -1.9        3.7      -0.1      0.9
  Revised                 2.8      0.8     -1.9        3.7      -0.2      0.9
Manufacturing:                                          
  Previous                0.9     -3.0     -3.9        4.0       0.2      3.1
  Revised                 0.9     -3.1     -3.9        4.1       0.3      3.2
------------------------------------------------------------------------------    
  
manufacturing sectors productivity was revised up along with 
output; hours were also revised up slightly in the manufacturing 
sector.  Upward revisions to hourly compensation were less than 
the revisions to productivity, so unit labor costs increased less 
than was reported on May 7 for each of the three sectors.   

      Table C also presents preliminary and revised results for the 
fourth quarter and annual average of 2008.  In the business and 
nonfarm business sectors, revised employee compensation data from 
the Bureau of Economic Analysis (BEA) of the Department of 
Commerce resulted in downward revisions to hourly compensation, 
real hourly compensation, and unit labor costs.   In the 
manufacturing sector, fourth quarter productivity was revised down 
due to a downward revision to output.  Unit labor costs were 
revised up due both to the downward revision to productivity and 
an upward revision to hourly compensation.  Annual measures for 
all sectors were mostly unaffected by the fourth-quarter 
revisions.    


Revised Measures Nonfinancial Corporations

      Fourth quarter and annual average 2008 measures were revised 
for the nonfinancial corporate sector.  As revised, productivity 
decreased at a 4.3 percent annual rate in the fourth quarter of 
2008, reflecting a 0.4 percentage point downward revision to 
output and unchanged employee hours.  A downward revision to 
hourly compensation was larger than the downward revision to 
productivity; as a result, unit labor costs rose slightly less 
than reported on May 7.  Annual measures were virtually the same 
as the preliminary estimates.   

------------------------------------------------------------------------------
Table D.  Nonfinancial corporations: Previous and revised productivity and 
costs measures
(Quarterly percent changes at seasonally adjusted annual rates)
------------------------------------------------------------------------------
                                           Real  
                                  Hourly   hourly   Unit              Implicit
         Produc-                  compen-  compen-  labor   Unit      price
         tivity   Output  Hours   sation   sation   costs   profits   deflator
------------------------------------------------------------------------------
                                Fourth quarter 2008
                                
Previous  -3.9    -10.5   -6.9     5.4      15.0     9.6     -28.8      5.0
Revised   -4.3    -10.9   -6.9     4.7      14.2     9.4     -28.5      5.0
------------------------------------------------------------------------------
                                Annual average 2008
                                
Previous   2.8      1.3   -1.5     3.9       0.1     1.1     -10.4      0.0
Revised    2.8      1.3   -1.5     3.9       0.0     1.1     -10.4      0.0
------------------------------------------------------------------------------

                      Next release date

        The next release of Productivity and Costs is scheduled for 
8:30 AM EDT, Tuesday, August 11, 2009.  Preliminary second-quarter 
measures for business, nonfarm business, and manufacturing will be 
released at that time.  The August 11 release also will 
incorporate the three-year revision of the National Income and 
Product Accounts.  
      
      Upcoming change to the Productivity and Costs news release  

        Beginning with the Productivity and Costs news release 
scheduled for publication on Wednesday, September 2, 2009, the 
Bureau of Labor Statistics will introduce changes to the format of 
the text section, including text tables.  All data series will 
continue to be provided. For further information, see the note 
under "Latest Announcements" on http://www.bls.gov/newsroom/.



			   TECHNICAL NOTES

Labor Hours: Hours data for the labor productivity and cost measures 
include hours for all persons working in the sectorówage 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 78 
percent of the value of GDP in 2000. Nonfarm business, which excludes 
farming, accounted for about 77 percent of GDP in 2000.
     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 54 percent of the value of GDP in 2000.
     
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

2007       I     135.7      164.5     121.3     174.3       122.1      128.5       134.3      130.7
          II     137.5      166.8     121.3     175.4       121.6      127.5       137.5      131.2
         III     140.0      169.0     120.8     177.4       122.3      126.7       139.8      131.6
          IV     139.6      168.8     120.9     178.9       121.6      128.2       139.0      132.2

      ANNUAL     138.2      167.3     121.1     176.5       121.9      127.7       137.7      131.4

2008       I     140.4      169.1     120.4     180.5       121.3      128.6       140.2      132.9
          II     142.0      170.2     119.9     181.3       120.6      127.7       142.4      133.2
         III     142.8      169.4     118.6     183.9       120.4      128.8       144.3      134.6
          IV     142.6      165.7     116.2    r185.8      r124.4     r130.3      r141.8      134.6

      ANNUAL    r141.9      168.6    r118.8    r182.8      r121.6     r128.8      r142.1      133.8

2009       I    r143.2     r162.6    r113.5    r187.8      r126.5     r131.2      r142.3     r135.3
---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

2007       I      -0.7       -0.7       0.0       4.0         0.2        4.7         3.0        4.0
          II       5.7        5.6       0.0       2.4        -1.7       -3.1         9.9        1.7
         III       7.3        5.5      -1.7       4.6         2.2       -2.5         7.0        1.1
          IV      -1.1       -0.6       0.5       3.7        -2.0        4.8        -2.3        2.0

      ANNUAL       1.6        2.0       0.5       4.2         1.3        2.6         2.1        2.4

2008       I       2.2        0.7      -1.5       3.5        -1.1        1.2         3.2        2.0
          II       4.7        2.6      -1.9       1.9        -2.4       -2.6         6.4        0.9
         III       2.3       -1.8      -4.0       5.7        -0.4        3.3         5.6        4.2
          IV      -0.5       -8.5      -8.0      r4.2       r13.7       r4.8       r-6.9        0.0

      ANNUAL       2.7        0.8      -1.9       3.6        -0.2        0.9         3.2        1.8

2009       I      r1.8      r-7.2      -8.8      r4.5        r7.0       r2.7         1.6       r2.2
---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

2007       I      -0.2        1.0       1.2       3.9         1.5        4.1         0.6        2.7
          II       0.7        1.7       1.0       4.3         1.6        3.6         0.9        2.5
         III       2.9        3.0       0.1       4.9         2.6        1.9         2.6        2.2
          IV       2.7        2.4      -0.3       3.7        -0.3        0.9         4.3        2.2

      ANNUAL       1.6        2.0       0.5       4.2         1.3        2.6         2.1        2.4

2008       I       3.5        2.8      -0.7       3.5        -0.7        0.0         4.4        1.7
          II       3.2        2.0      -1.2       3.4        -0.8        0.2         3.5        1.5
         III       2.0        0.2      -1.7       3.7        -1.5        1.6         3.2        2.3
          IV       2.1       -1.8      -3.9      r3.8        r2.3       r1.6        r2.0        1.8

      ANNUAL       2.7        0.8      -1.9       3.6        -0.2        0.9         3.2        1.8

2009       I      r2.0      r-3.8      -5.7       4.1         4.3       r2.0        r1.5       r1.8
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                       June 4, 2009
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

2007       I     134.7      164.7     122.2     173.4       121.5      128.7       135.1      131.1
          II     136.3      167.0     122.5     174.0       120.6      127.6       138.3      131.5
         III     138.7      169.2     122.0     175.8       121.2      126.8       140.5      131.8
          IV     138.5      168.9     122.0     177.8       120.8      128.4       139.7      132.5

      ANNUAL     137.0      167.5     122.2     175.2       121.0      127.9       138.4      131.7

2008       I     139.4      169.3     121.5     179.4       120.6      128.7       141.0      133.2
          II     141.0      170.5     120.9     180.2       119.8      127.8       143.3      133.5
         III     141.7      169.7     119.7     182.7       119.7      128.9       145.6      135.0
          IV     141.5      165.8     117.1    r184.7      r123.7     r130.5      r143.4      135.2

      ANNUAL    r140.9      168.8    r119.8    r181.7      r120.8     r129.0      r143.3      134.2

2009       I    r142.1     r162.6    r114.4    r186.8      r125.8     r131.5      r144.2     r136.2
---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

2007       I      -0.6       -0.9      -0.2       4.2         0.3        4.8         1.2        3.4
          II       4.8        5.8       0.9       1.3        -2.8       -3.3         9.7        1.5
         III       7.0        5.5      -1.5       4.4         2.0       -2.5         6.4        0.9
          IV      -0.5       -0.7      -0.2       4.4        -1.2        5.0        -2.3        2.1

      ANNUAL       1.4        2.0       0.5       4.1         1.3        2.7         1.2        2.1

2008       I       2.6        0.9      -1.7       3.7        -0.8        1.1         3.8        2.1
          II       4.7        2.8      -1.7       1.7        -2.7       -2.8         6.9        0.9
         III       2.2       -1.9      -3.9       5.7        -0.4        3.5         6.4        4.7
          IV      -0.6       -8.8      -8.3      r4.5       r14.0       r5.1       r-5.9        0.6

      ANNUAL       2.8        0.8      -1.9       3.7       r-0.2        0.9         3.5        1.9

2009       I      r1.6      r-7.6      -9.0      r4.6        r7.1       r3.0        r2.4       r2.8
---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

2007       I      -0.1        0.9       1.0       4.1         1.7        4.2        -0.3        2.5
          II       0.5        1.6       1.1       4.2         1.5        3.6        -0.2        2.1
         III       2.6        2.9       0.3       4.7         2.3        2.0         1.5        1.8
          IV       2.6        2.4      -0.3       3.6        -0.4        0.9         3.6        2.0

      ANNUAL       1.4        2.0       0.5       4.1         1.3        2.7         1.2        2.1

2008       I       3.5        2.8      -0.6       3.5        -0.7        0.0         4.3        1.6
          II       3.4        2.1      -1.3       3.6        -0.7        0.1         3.6        1.5
         III       2.2        0.3      -1.9       3.9        -1.3        1.6         3.6        2.4
          IV       2.2       -1.8      -4.0      r3.9        r2.3       r1.7        r2.7        2.1

      ANNUAL       2.8        0.8      -1.9       3.7       r-0.2        0.9         3.5        1.9

2009       I      r1.9      r-4.0      -5.8      r4.1        r4.3       r2.2        r2.3        2.2
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                       June 4, 2009
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

2007       I            176.9        148.0         83.7        176.6          123.7          99.8
          II            178.2        149.3         83.8        176.3          122.3          99.0
         III            180.1        150.3         83.4        177.0          122.0          98.2
          IV            181.6        150.4         82.8        179.6          122.1          98.9

      ANNUAL            179.2        149.5         83.4        177.4          122.5          99.0

2008       I            182.8        149.9         82.0        181.1          121.7          99.1
          II            181.6        148.0         81.5        182.7          121.5         100.6
         III            180.3        144.4         80.1        185.1          121.2         102.7
          IV           r178.2       r137.3         77.0       r190.3         r127.4        r106.8

      ANNUAL           r180.7       r144.9         80.2       r184.7         r122.8        r102.2

2009       I           r177.0       r129.1        r73.0       r196.4         r132.3        r111.0
--------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

2007       I              3.7          1.8         -1.9          5.0            1.1           1.2
          II              3.0          3.4          0.4         -0.5           -4.5          -3.4
         III              4.4          2.7         -1.6          1.4           -1.0          -2.9
          IV              3.3          0.3         -2.9          6.1            0.3           2.7

      ANNUAL              3.2          1.3         -1.8          3.6            0.7           0.4

2008       I              2.6         -1.2         -3.7          3.4           -1.1           0.8
          II             -2.5         -5.2         -2.7          3.5           -0.9           6.2
         III             -2.9         -9.3         -6.5          5.4           -0.7           8.6
          IV            r-4.6       r-18.3        -14.4        r11.8          r22.0         r17.1

      ANNUAL              0.9        r-3.1         -3.9         r4.1           r0.3          r3.2

2009       I            r-2.7       r-21.7       r-19.5        r13.4          r16.1         r16.6
--------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

2007       I              2.5          0.4         -2.0          3.5            1.0           0.9
          II              3.3          1.3         -2.0          4.1            1.4           0.8
         III              3.3          1.6         -1.6          3.8            1.5           0.5
          IV              3.6          2.0         -1.5          2.9           -1.0          -0.6

      ANNUAL              3.2          1.3         -1.8          3.6            0.7           0.4

2008       I              3.3          1.3         -2.0          2.6           -1.6          -0.7
          II              1.9         -0.9         -2.7          3.6           -0.7           1.6
         III              0.1         -3.9         -4.0          4.6           -0.6           4.5
          IV            r-1.9        r-8.7         -7.0         r6.0           r4.4          r8.0

      ANNUAL              0.9        r-3.1         -3.9         r4.1           r0.3          r3.2

2009       I            r-3.2       r-13.9       r-11.0         r8.4           r8.7         r12.0
--------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                June 4, 2009
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

2007       I            204.1        180.4         88.4        172.7          121.0          84.6
          II            206.9        183.0         88.5        172.5          119.6          83.4
         III            209.7        185.0         88.2        173.0          119.3          82.5
          IV            212.9        185.7         87.2        175.7          119.4          82.5

      ANNUAL            208.4        183.5         88.1        173.5          119.8          83.2

2008       I            213.6        185.3         86.8        176.5          118.7          82.7
          II            211.1        181.8         86.1        178.7          118.9          84.7
         III            212.2        178.1         83.9        181.7          119.1          85.6
          IV           r204.3       r165.1         80.8       r186.3         r124.8         r91.2

      ANNUAL           r210.4       r177.6         84.4       r180.7         r120.2         r85.9

2009       I           r198.8       r150.4        r75.7       r193.3         r130.2         r97.2
--------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

2007       I              4.2          1.2         -2.9          6.2            2.3           1.9
          II              5.6          6.0          0.4         -0.5           -4.5          -5.8
         III              5.6          4.4         -1.1          1.3           -1.0          -4.1
          IV              6.3          1.4         -4.5          6.3            0.5           0.0

      ANNUAL              4.0          1.8         -2.1          4.2            1.3           0.2

2008       I              1.2         -0.9         -2.0          2.0           -2.4           0.8
          II             -4.6         -7.3         -2.9          5.1            0.6          10.1
         III              2.2         -7.9         -9.9          6.9            0.7           4.5
          IV           r-14.1       r-26.2        -14.1        r10.5          r20.5         r28.6

      ANNUAL             r0.9        r-3.3         -4.2         r4.2            0.3          r3.2

2009       I           r-10.4        -31.0       r-23.0        r15.8          r18.6         r29.3
--------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

2007       I              2.6          0.3         -2.3          4.2            1.7           1.5
          II              4.1          1.4         -2.6          4.8            2.1           0.7
         III              4.0          2.3         -1.6          4.6            2.3           0.6
          IV              5.4          3.2         -2.1          3.3           -0.7          -2.0

      ANNUAL              4.0          1.8         -2.1          4.2            1.3           0.2

2008       I              4.6          2.7         -1.8          2.2           -1.9          -2.3
          II              2.0         -0.7         -2.6          3.6           -0.6           1.6
         III              1.2         -3.7         -4.9          5.0           -0.2           3.8
          IV             -4.0       r-11.1         -7.3         r6.1           r4.5         r10.5

      ANNUAL             r0.9        r-3.3         -4.2         r4.2            0.3          r3.2

2009       I            r-6.9       r-18.8       r-12.8         r9.5           r9.7         r17.6
--------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                June 4, 2009
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

2007       I            151.3        115.9         76.6        181.6          127.2         120.0
          II            151.4        116.0         76.7        181.3          125.7         119.8
         III            152.6        116.3         76.2        182.0          125.5         119.2
          IV            152.3        116.0         76.2        184.7          125.6         121.3

      ANNUAL            151.9        116.1         76.4        182.4          126.0         120.1

2008       I            154.3        115.6         74.9        187.3          125.9         121.4
          II            154.2        114.8         74.4        187.6          124.7         121.6
         III            150.1        111.6         74.4        189.1          123.9         126.0
          IV           r152.4       r108.8         71.4       r195.5         r130.9        r128.3

      ANNUAL           r152.8       r112.7         73.8       r189.8         r126.3        r124.3

2009       I           r153.1       r105.5        r68.9       r200.3         r134.9        r130.9
--------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

2007       I              2.4          2.4          0.0          2.8           -1.0           0.4
          II              0.3          0.7          0.4         -0.5           -4.5          -0.7
         III              3.4          0.8         -2.5          1.4           -0.9          -1.9
          IV             -0.9         -0.9          0.0          6.1            0.3           7.0

      ANNUAL              2.0          0.9         -1.1          2.4           -0.4           0.4

2008       I              5.4         -1.4         -6.5          5.8            1.2           0.4
          II             -0.4         -2.8         -2.5          0.5           -3.8           0.9
         III            -10.2        -10.6         -0.5          3.4           -2.6          15.1
          IV             r6.1        r-9.8        -15.0        r14.3          r24.7          r7.6

      ANNUAL              0.6         -2.9         -3.4         r4.1           r0.2          r3.5

2009       I             r1.9       r-11.6       r-13.2        r10.1          r12.8          r8.1
--------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

2007       I              2.3          0.7         -1.6          2.1           -0.3          -0.1
          II              2.1          1.2         -0.9          2.8            0.1           0.7
         III              2.5          0.9         -1.6          2.3            0.0          -0.2
          IV              1.3          0.8         -0.5          2.4           -1.5           1.1

      ANNUAL              2.0          0.9         -1.1          2.4           -0.4           0.4

2008       I              2.0         -0.2         -2.2          3.2           -1.0           1.1
          II              1.9         -1.1         -2.9          3.4           -0.8           1.5
         III             -1.7         -4.0         -2.4          3.9           -1.2           5.7
          IV             r0.0        r-6.2         -6.3         r5.9           r4.3          r5.8

      ANNUAL              0.6         -2.9         -3.4         r4.1           r0.2          r3.5

2009       I            r-0.8        r-8.8         -8.0         r6.9           r7.1          r7.8
--------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                June 4, 2009
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    145.4    177.2     121.9    170.0     119.1     116.9    117.6    117.1    172.4    122.1
          II    146.7    179.1     122.0    171.1     118.6     116.6    117.9    116.9    173.1    122.0
         III    147.8    180.2     121.9    172.8     119.1     116.9    118.2    117.2    167.4    121.7
          IV    148.3    181.2     122.2    174.9     118.9     117.9    119.3    118.3    156.4    121.7

      ANNUAL    147.1    179.4     122.0    172.2     118.9     117.1    118.3    117.4    167.3    121.9

2008       I    148.1    180.6     121.9    176.1     118.4     118.9    119.4    119.0    150.8    121.8
          II    151.2    183.2     121.2    177.4     118.0     117.3    119.8    118.0    147.8    120.6
         III    153.6    184.2     120.0    180.0     117.9     117.3    121.3    118.3    156.7    121.8
          IV   r151.9   r179.0     117.9   r182.1    r121.9    r119.9   r124.9   r121.2   r144.1    123.3

      ANNUAL   r151.2   r181.8    r120.2   r178.9    r119.0    r118.3   r121.3   r119.1   r149.9    121.9

2009       I    151.1    173.2     114.7    184.9     124.5     122.4    128.9    124.1    136.1    125.2
----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

2007       I     -0.6     -0.2       0.4      5.3       1.4       5.9      3.8      5.4     -4.5      4.0
          II      3.8      4.2       0.4      2.6      -1.5      -1.1      0.9     -0.6      1.7     -0.3
         III      3.0      2.7      -0.4      4.0       1.6       0.9      1.2      1.0    -12.6     -0.8
          IV      1.2      2.1       0.9      5.0      -0.8       3.7      3.7      3.7    -23.8      0.0

      ANNUAL      0.7      1.4       0.7      4.1       1.2       3.4      3.2      3.3     -8.8      1.7

2008       I     -0.4     -1.4      -0.9      2.7      -1.7       3.2      0.3      2.4    -13.6      0.5
          II      8.5      6.0      -2.3      3.1      -1.3      -5.0      1.2     -3.4     -7.7     -3.8
         III      6.4      2.3      -3.9      6.1      -0.1      -0.3      5.4      1.2     26.5      3.8
          IV    r-4.3   r-10.9      -6.9     r4.7     r14.2      r9.4    r12.2    r10.1   r-28.5      5.0

      ANNUAL      2.8      1.3      -1.5      3.9      r0.0       1.1      2.6      1.5    -10.4      0.0

2009       I     -2.1    -12.3     -10.4      6.3       8.8       8.5     13.7     10.0    -20.5      6.4
----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

2007       I     -0.4      0.7       1.1      3.5       1.1       4.0      4.1      4.0     -5.6      2.7
          II      0.7      1.6       0.9      4.1       1.4       3.4      2.9      3.2     -5.6      2.0
         III      0.8      1.2       0.4      4.6       2.3       3.8      3.2      3.7    -13.5      1.2
          IV      1.9      2.2       0.3      4.2       0.2       2.3      2.4      2.3    -10.3      0.7

      ANNUAL      0.7      1.4       0.7      4.1       1.2       3.4      3.2      3.3     -8.8      1.7

2008       I      1.9      1.9       0.0      3.6      -0.6       1.6      1.5      1.6    -12.5     -0.2
          II      3.0      2.3      -0.7      3.7      -0.6       0.6      1.6      0.9    -14.6     -1.1
         III      3.9      2.2      -1.6      4.2      -1.0       0.3      2.6      1.0     -6.4      0.1
          IV     r2.4    r-1.2      -3.5     r4.1      r2.6       1.7     r4.7      2.5    r-7.8      1.3

      ANNUAL      2.8      1.3      -1.5      3.9      r0.0       1.1      2.6      1.5    -10.4      0.0

2009       I      2.0     -4.1      -5.9      5.0       5.2       3.0      8.0      4.3     -9.7      2.8
----------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                        June 4, 2009
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 +1.3 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 2008.

                       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 1978-2008 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.



Last Modified Date: June 04, 2009