Productivity and Costs News Release



Transmission of this material is embargoed until            USDL-09-1066
8:30 a.m. (EDT) Wednesday, September 2, 2009

Technical information: (202) 691-5606 •  dprweb@bls.gov • www.bls.gov/lpc
Media contact:         (202) 691-5902 •  PressOffice@bls.gov



                        PRODUCTIVITY AND COSTS
                     Second Quarter 2009, Revised

Nonfarm business sector labor productivity increased at a 6.6 percent 
annual rate during the second quarter of 2009, the U.S. Bureau of Labor 
Statistics reported today. This was the largest productivity increase 
since the third quarter of 2003, and reflects declines of 1.5 percent in 
output and 7.6 percent in hours worked. (All quarterly percent changes in 
this release are seasonally adjusted annual rates.) From the second 
quarter of 2008 to the second quarter of 2009, output fell 5.5 percent 
while hours fell 7.2 percent, yielding an increase in productivity of 1.9 
percent (tables A and 2). Nonfarm business productivity increased at an 
annual rate of 2.5 percent from 2000 through 2008.

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 5.9 percent in the second 
quarter of 2009, with the decline due entirely to the increase in 
productivity; hourly compensation increased slightly.  Unit labor costs 
declined 1.2 percent over the last four quarters, as a 1.9 percent 
increase in output per hour was partially offset by a 0.7 percent increase 
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. 

Productivity increased 6.5 percent in the business sector in the second 
quarter of 2009.  Unit labor costs decreased 6.0 percent during the second 
quarter of 2009 (tables A and 1).

Manufacturing sector productivity grew 4.9 percent in the second quarter 
of 2009, as output fell 9.8 percent and hours worked decreased 14.0 
percent; declines in output and hours were much larger in durable goods 
industries than in nondurable goods industries (tables A, 3, 4 and 5).  
The productivity gain in the manufacturing sector was the largest since 
the first quarter of 2005.  Unit labor costs in manufacturing edged up 0.2 
percent in the second quarter of 2009 and increased 6.7 percent over the 
last four quarters (tables A and 3).

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.

Revised measures

Table B presents previous and revised productivity and related measures 
for the major sectors: business, nonfarm business and manufacturing, for 
the first and second quarters of 2009.

In the second quarter of 2009, nonfarm business productivity was revised 
up by 0.2 percentage point from the estimate published on August 11, 
reflecting a 0.2 percentage point upward revision to output; hours were 
not revised.  Unit labor costs were revised down by 0.1 percentage point 
in the second quarter.  In the manufacturing sector, productivity was 
revised down by 0.4 percentage point in the second quarter.

In the first quarter of 2009, nonfarm business productivity was not 
revised.  Unit labor costs fell 5.0 percent rather than decreasing 2.7 
percent as previously reported, due to a 2.3 percent downward revision to 
hourly compensation.  In the manufacturing sector, first quarter 
productivity was unrevised.  Unit labor costs were revised down by 2.6 
percentage points. 

From the first quarter of 1987, unit labor costs, hourly compensation, and 
real hourly compensation were revised in the manufacturing sector and its 
subsectors.  This was the result of addressing a series break between 2000 
and 2001 in the manufacturing compensation series published on August 11.  
The SIC-based data prior to 2001 have been linked to the NAICS-based 
series.  This revision eliminates the break in series at 2001 for the 
manufacturing sector data based on compensation; percent changes in 2001 
were revised substantially.  There were small revisions to percent changes 
in other years and quarters.  Because the base year for the indexes (1992) 
was adjusted, index values for the entire series were subject to revision.  
Revised quarterly and annual series for recent years appear in tables 3-5 
and revised annual indexes are displayed in appendix tables 1-3.  Full 
historical annual and quarterly measures can be found on the productivity 
and costs home page https://www.bls.gov/lpc/#data.  


___________
The preliminary Productivity and Costs press release for third-quarter 
2009 is scheduled to be released on Thursday, November 5, 2009 at 8:30 
a.m. (EST).


======================================================================================================
Table A. Revised second-quarter 2009 measures, percent change from previous quarter, annual rate 
(Q to Q) and from same quarter a year ago (Y to Y)

Sector                    Nonfarm                                       Manufacturing   Manufacturing
                          Business        Business       Manufacturing     Durables      Nondurables
                       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             6.6     1.9     6.5     1.9      4.9    -1.4     3.1    -5.2     2.2    -0.2
Output                  -1.5    -5.5    -1.4    -5.3     -9.8   -15.0   -16.4   -21.1    -3.2    -8.8
Hours                   -7.6    -7.2    -7.5    -7.1    -14.0   -13.8   -18.9   -16.8    -5.3    -8.6
Hourly compensation      0.3     0.7     0.2     0.6      5.1     5.2     7.9     6.2     1.5     4.1
Real hourly             
 compensation           -1.0     1.6    -1.2     1.5      3.7     6.2     6.5     7.2     0.2     5.1         
Unit labor costs        -5.9    -1.2    -6.0    -1.3      0.2     6.7     4.6    12.0    -0.7     4.2
======================================================================================================

Table B. Revised and previous measures for: second quarter and first quarter 2009

Sector             Nonfarm                                           Manufacturing     Manufacturing
                  Business        Business           Manufacturing      Durables        Nondurables
              Revised Previous  Revised Previous  Revised Previous  Revised Previous  Revised Previous
------------------------------------------------------------------------------------------------------
                                Percent change, annual rate, second quarter 2009
                                
Productivity     6.6     6.4      6.5     6.3        4.9     5.3      3.1     3.9        2.2     2.0
Output          -1.5    -1.7     -1.4    -1.8       -9.8    -9.9    -16.4   -16.5       -3.2    -3.4
Hours           -7.6    -7.6     -7.5    -7.5      -14.0   -14.4    -18.9   -19.6       -5.3    -5.3
Hourly
 compensation    0.3     0.2      0.2     0.1        5.1     5.8      7.9     8.7        1.5     2.0
Real hourly     
 compensation   -1.0    -1.1     -1.2    -1.2        3.7     4.4      6.5     7.3        0.2     0.7
Unit labor
 costs          -5.9    -5.8     -6.0    -5.8        0.2     0.5      4.6     4.7       -0.7     0.0
------------------------------------------------------------------------------------------------------
                                Percent change, annual rate, first quarter 2009

Productivity     0.3     0.3      0.2     0.2       -2.6    -2.6     -10.7  -10.5        2.1     2.0
Output          -8.8    -8.8     -8.7    -8.7      -21.9   -21.8     -31.7  -31.5      -11.2   -11.3
Hours           -9.0    -9.0     -8.9    -8.9      -19.8   -19.8     -23.5  -23.5      -13.0   -13.0
Hourly 
compensation    -4.7    -2.4     -4.7    -2.5       -0.4     2.2       0.7    3.3       -1.5     1.2
Real hourly
 compensation   -2.4    -0.1     -2.4    -0.1        2.0     4.6       3.1    5.7        0.9     3.6
Unit labor
 costs          -5.0    -2.7     -4.9    -2.7        2.3     4.9      12.8   15.4       -3.5    -0.7
======================================================================================================
Table C. Nonfinancial corporations: preliminary second quarter 2009 and revised first quarter 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, second quarter 2009
                                
Q to Q         6.2      -2.6       -8.3      1.8         0.4          -4.2          22.5         -1.1
Y to Y         0.0      -7.4       -7.4      1.6         2.5           1.5          -0.4          2.8
                                Percent change, annual rate, first quarter 2009
                                
Revised       -7.3      -17.1     -10.5     -4.7        -2.4           2.9          -5.8          5.3
Previous      -6.0      -15.9     -10.5     -2.5        -0.2           3.7          -7.2          5.3
======================================================================================================



			
			
			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

2007       I     139.0      168.4     121.2     175.2       122.7      126.0       136.7      130.0
          II     140.2      169.8     121.2     176.5       122.4      125.9       139.4      130.9
         III     142.1      171.4     120.6     177.8       122.6      125.1       141.9      131.4
          IV     142.6      172.3     120.8     179.6       122.1      125.9       141.9      131.9

      ANNUAL     141.0      170.5     120.9     177.3       122.4      125.7       140.0      131.0

2008       I     142.7      171.7     120.3     180.3       121.2      126.3       141.7      132.1
          II     143.8      172.2     119.8     181.0       120.4      125.9       143.8      132.5
         III     143.9      170.6     118.6     183.0       119.9      127.2       145.4      134.0
          IV     144.2      167.4     116.1     184.2       123.3      127.7       143.6      133.6

      ANNUAL     143.6      170.5     118.7     182.1       121.1      126.8       143.6      133.0

2009       I     144.3      163.6     113.4    r182.0      r122.6     r126.1      r148.1      134.3
          II    r146.6     r163.1    r111.3    r182.0      r122.2     r124.2      r151.2     r134.2
---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

2007       I       0.9        0.8      -0.1       4.4         0.6        3.5         4.8        4.0
          II       3.5        3.5       0.0       3.1        -1.1       -0.4         8.0        2.8
         III       5.5        3.7      -1.7       3.0         0.6       -2.4         7.4        1.4
          IV       1.6        2.1       0.5       4.3        -1.4        2.6         0.2        1.6

      ANNUAL       1.8        2.2       0.4       4.2         1.3        2.4         3.0        2.6

2008       I       0.2       -1.3      -1.5       1.5        -3.0        1.3        -0.5        0.6
          II       3.1        1.1      -1.9       1.6        -2.8       -1.5         5.9        1.4
         III       0.3       -3.7      -4.0       4.5        -1.6        4.2         4.5        4.3
          IV       0.8       -7.2      -8.0       2.6        12.0        1.8        -4.9       -1.0

      ANNUAL       1.9        0.0      -1.9       2.7        -1.1        0.8         2.6        1.5

2009       I       0.2       -8.7      -8.9     r-4.7       r-2.4      r-4.9       r13.3        2.1
          II      r6.5      r-1.4      -7.5      r0.2        -1.2      r-6.0        r8.5      r-0.2
---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

2007       I       0.3        1.5       1.1       4.0         1.6        3.7         1.6        2.9
          II       1.0        2.0       0.9       4.4         1.7        3.3         1.9        2.8
         III       3.0        3.0       0.0       4.8         2.4        1.7         3.3        2.4
          IV       2.9        2.5      -0.3       3.7        -0.3        0.8         5.1        2.5

      ANNUAL       1.8        2.2       0.4       4.2         1.3        2.4         3.0        2.6

2008       I       2.7        2.0      -0.7       2.9        -1.2        0.2         3.7        1.6
          II       2.6        1.4      -1.2       2.6        -1.7        0.0         3.2        1.2
         III       1.3       -0.5      -1.7       2.9        -2.2        1.6         2.5        2.0
          IV       1.1       -2.8      -3.9       2.5         1.0        1.4         1.2        1.3

      ANNUAL       1.9        0.0      -1.9       2.7        -1.1        0.8         2.6        1.5

2009       I       1.1       -4.7      -5.7      r0.9        r1.1      r-0.2        r4.5        1.7
          II       1.9      r-5.3      -7.1      r0.6        r1.5      r-1.3        r5.1        1.3
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                       September 2, 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     138.2      168.8     122.1     174.2       122.1      126.0       138.2      130.5
          II     139.2      170.3     122.4     175.1       121.4      125.8       140.9      131.4
         III     141.1      172.0     121.9     176.3       121.5      125.0       143.3      131.7
          IV     141.8      172.8     121.9     178.5       121.3      125.9       143.0      132.2

      ANNUAL     140.1      171.0     122.1     176.0       121.6      125.7       141.4      131.5

2008       I     141.7      172.0     121.4     179.2       120.5      126.4       142.5      132.3
          II     142.8      172.6     120.8     179.8       119.6      125.9       144.9      132.9
         III     142.8      170.8     119.6     181.8       119.1      127.3       146.6      134.4
          IV     143.1      167.5     117.0     183.1       122.6      128.0       145.3      134.3

      ANNUAL     142.6      170.7     119.7     181.0       120.4      126.9       144.8      133.5

2009       I     143.2      163.7     114.3    r180.9      r121.9     r126.3      r150.5      135.2
          II    r145.5     r163.1    r112.1    r181.1      r121.5     r124.4      r153.5     r135.1
---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

2007       I       1.2        0.9      -0.3       4.7         0.8        3.5         3.9        3.6
          II       2.8        3.7       0.9       2.0        -2.1       -0.7         8.1        2.7
         III       5.5        3.9      -1.5       2.7         0.3       -2.7         7.0        1.1
          IV       2.0        1.8      -0.2       5.0        -0.7        3.0        -0.9        1.4

      ANNUAL       1.8        2.3       0.5       4.2         1.3        2.3         2.4        2.3

2008       I      -0.1       -1.7      -1.6       1.7        -2.8        1.7        -1.5        0.5
          II       3.1        1.3      -1.7       1.3        -3.0       -1.8         6.9        1.6
         III      -0.1       -4.0      -3.9       4.5        -1.6        4.6         4.7        4.6
          IV       0.8       -7.6      -8.3       2.9        12.3        2.0        -3.5       -0.2

      ANNUAL       1.8       -0.1      -1.9       2.8        -1.0        1.0         2.4        1.5

2009       I       0.3       -8.8      -9.0     r-4.7       r-2.4      r-5.0       r15.2        2.7
          II      r6.6      r-1.5      -7.6      r0.3       r-1.0      r-5.9        r8.2      r-0.3
---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

2007       I       0.5        1.5       0.9       4.3         1.8        3.7         1.0        2.7
          II       1.1        2.1       1.1       4.3         1.6        3.1         1.3        2.4
         III       2.9        3.2       0.2       4.6         2.2        1.6         2.8        2.1
          IV       2.8        2.6      -0.3       3.6        -0.4        0.7         4.5        2.2

      ANNUAL       1.8        2.3       0.5       4.2         1.3        2.3         2.4        2.3

2008       I       2.5        1.9      -0.6       2.9        -1.3        0.3         3.1        1.4
          II       2.6        1.3      -1.3       2.7        -1.5        0.1         2.8        1.1
         III       1.2       -0.7      -1.9       3.1        -2.0        1.9         2.3        2.0
          IV       0.9       -3.0      -4.0       2.6         1.0        1.6         1.6        1.6

      ANNUAL       1.8       -0.1      -1.9       2.8        -1.0        1.0         2.4        1.5

2009       I       1.0       -4.8      -5.8      r0.9        r1.1      r-0.1        r5.6        2.2
          II      r1.9      r-5.5     r-7.2      r0.7        r1.6      r-1.2        r5.9        1.7
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                       September 2, 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       r172.9         r121.1         r97.7
          II            178.2        149.3         83.8       r172.9         r119.9         r97.0
         III            180.1        150.3         83.4       r172.9         r119.2         r96.0
          IV            181.6        150.4         82.8       r175.6         r119.4         r96.7

      ANNUAL            179.2        149.5         83.4       r173.6         r119.9         r96.9

2008       I            182.8        149.9         82.0       r175.7         r118.1         r96.1
          II            181.6        148.0         81.5       r176.9         r117.6         r97.4
         III            180.3        144.4         80.1       r178.8         r117.1         r99.2
          IV            178.1        137.2         77.0       r183.9         r123.1        r103.2

      ANNUAL            180.7        144.9         80.2       r178.7         r118.9         r98.9

2009       I           r176.9       r129.0         72.9       r183.7         r123.7        r103.8
          II           r179.1       r125.7        r70.2       r186.0         r124.9        r103.9
--------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

2007       I              3.7          1.8         -1.9          8.2            4.2           4.3
          II              3.0          3.4          0.4          0.0           -4.1          -3.0
         III              4.4          2.7         -1.6          0.1           -2.2          -4.1
          IV              3.3          0.3         -2.9          6.5            0.7           3.1

      ANNUAL              3.2          1.3         -1.8          4.3            1.4           1.1

2008       I              2.6         -1.2         -3.7          0.1           -4.3          -2.5
          II             -2.5         -5.2         -2.7          2.8           -1.6           5.4
         III             -2.9         -9.3         -6.5          4.3           -1.7           7.5
          IV             -4.7        -18.4        -14.4         12.0           22.2          17.5

      ANNUAL              0.8         -3.1         -3.9          3.0          r-0.8           2.1

2009       I             -2.6       r-21.9        -19.8        r-0.4           r2.0          r2.3
          II             r4.9        r-9.8       r-14.0         r5.1           r3.7          r0.2
--------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

2007       I              2.5          0.4         -2.0          4.3            1.9           1.8
          II              3.3          1.3         -2.0          4.9            2.1           1.5
         III              3.3          1.6         -1.6          4.5            2.1           1.2
          IV              3.6          2.0         -1.5          3.6           -0.4           0.0

      ANNUAL              3.2          1.3         -1.8          4.3            1.4           1.1

2008       I              3.3          1.3         -2.0          1.6           -2.5          -1.7
          II              1.9         -0.9         -2.7          2.3           -1.9           0.4
         III              0.1         -3.9         -4.0          3.4           -1.8           3.3
          IV             -1.9         -8.7         -7.0          4.7            3.1           6.7

      ANNUAL              0.8         -3.1         -3.9          3.0          r-0.8           2.1

2009       I             -3.2        -13.9        -11.1         r4.6           r4.8          r8.0
          II            r-1.4        -15.0       r-13.8         r5.2           r6.2          r6.7
--------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                September 2, 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       r168.0         r117.7         r82.3
          II            206.9        183.0         88.5       r167.3         r116.0         r80.9
         III            209.7        185.0         88.2       r167.5         r115.5         r79.9
          IV            212.9        185.7         87.2       r170.1         r115.6         r79.9

      ANNUAL            208.4        183.5         88.1       r168.2         r116.2         r80.7

2008       I            213.6        185.3         86.8       r169.5         r113.9         r79.4
          II            211.1        181.8         86.1       r171.2         r113.8         r81.1
         III            212.2        178.1         83.9       r173.7         r113.8         r81.8
          IV            204.3        165.1         80.8       r178.1         r119.2         r87.2

      ANNUAL            210.4        177.6         84.4       r173.0         r115.1         r82.2

2009       I           r198.6       r150.0         75.6       r178.4         r120.1         r89.8
          II           r200.1       r143.5        r71.7       r181.8         r122.0         r90.9
--------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

2007       I              4.2          1.2         -2.9        r10.1            6.0           5.6
          II              5.6          6.0          0.4         -1.7           -5.7          -6.9
         III              5.6          4.4         -1.1          0.4           -1.9          -4.9
          IV              6.3          1.4         -4.5          6.3            0.5           0.1

      ANNUAL              4.0          1.8         -2.1          4.7            1.8           0.7

2008       I              1.2         -0.9         -2.0         -1.4           -5.7          -2.5
          II             -4.6         -7.3         -2.9          4.1           -0.4           9.1
         III              2.2         -7.9         -9.9         r5.9           -0.2           3.6
          IV            -14.2        -26.2        -14.1         10.5           20.6          28.8

      ANNUAL              0.9         -3.3         -4.2          2.8           -1.0           1.9

2009       I           r-10.7       r-31.7        -23.5         r0.7           r3.1         r12.8
          II             r3.1       r-16.4       r-18.9         r7.9           r6.5          r4.6
--------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

2007       I              2.6          0.3         -2.3          4.9            2.4           2.2
          II              4.1          1.4         -2.6          5.3            2.6           1.2
         III              4.0          2.3         -1.6          5.0            2.7           1.0
          IV              5.4          3.2         -2.1          3.7           -0.3          -1.6

      ANNUAL              4.0          1.8         -2.1          4.7            1.8           0.7

2008       I              4.6          2.7         -1.8          0.9           -3.2          -3.6
          II              2.0         -0.7         -2.6          2.3           -1.9           0.3
         III              1.2         -3.7         -4.9          3.7           -1.5           2.5
          IV             -4.1        -11.1         -7.3          4.7            3.1           9.1

      ANNUAL              0.9         -3.3         -4.2          2.8           -1.0           1.9

2009       I            r-7.0        -19.0        -12.9         r5.3           r5.5         r13.2
          II            r-5.2        -21.1       r-16.8         r6.2           r7.2         r12.0
--------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                September 2, 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       r179.7         r125.9        r118.8
          II            151.4        116.0         76.7       r181.2         r125.6        r119.7
         III            152.6        116.3         76.2       r180.9         r124.7        r118.5
          IV            152.3        116.0         76.2       r184.1         r125.1        r120.8

      ANNUAL            151.9        116.1         76.4       r181.5         r125.3        r119.5

2008       I            154.3        115.6         74.9       r185.2         r124.5        r120.0
          II            154.2        114.8         74.4       r185.3         r123.2        r120.2
         III            150.1        111.6         74.4       r186.3         r122.1        r124.1
          IV            152.3        108.7         71.4       r192.8         r129.1        r126.6

      ANNUAL            152.7        112.7         73.8       r187.4         r124.6        r122.7

2009       I           r153.1       r105.6         69.0       r192.1         r129.4        r125.5
          II           r153.9       r104.7         68.0       r192.9         r129.5        r125.3
--------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

2007       I              2.4          2.4          0.0          4.9            1.1           2.4
          II              0.3          0.7          0.4          3.3           -0.9           3.0
         III              3.4          0.8         -2.5         -0.6           -2.9          -3.9
          IV             -0.9         -0.9          0.0          7.1            1.3           8.0

      ANNUAL              2.0          0.9         -1.1          3.6            0.8           1.6

2008       I              5.4         -1.4         -6.5          2.6           -1.9          -2.7
          II             -0.4         -2.8         -2.5          0.2          r-4.0           0.6
         III            -10.2        -10.6         -0.5          2.1           -3.8          13.7
          IV              6.0         -9.9        -15.0         14.7           25.2           8.2

      ANNUAL              0.6         -2.9         -3.4          3.3           -0.6           2.7

2009       I             r2.1       r-11.2        -13.0        r-1.5           r0.9         r-3.5
          II             r2.2        r-3.2         -5.3         r1.5           r0.2         r-0.7
--------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

2007       I              2.3          0.7         -1.6          3.4            0.9           1.1
          II              2.1          1.2         -0.9          4.1            1.4           2.0
         III              2.5          0.9         -1.6          3.4            1.1           0.9
          IV              1.3          0.8         -0.5          3.7           -0.4           2.3

      ANNUAL              2.0          0.9         -1.1          3.6            0.8           1.6

2008       I              2.0         -0.2         -2.2          3.1           -1.1           1.0
          II              1.9         -1.1         -2.9          2.3           -1.9           0.4
         III             -1.7         -4.0         -2.4          3.0           -2.1           4.7
          IV              0.0         -6.3         -6.3          4.8            3.2           4.8

      ANNUAL              0.6         -2.9         -3.4          3.3           -0.6           2.7

2009       I             -0.8         -8.7         -8.0         r3.7           r3.9          r4.6
          II             -0.2        r-8.8         -8.6         r4.1           r5.1          r4.2
--------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                September 2, 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    143.5    175.1     122.0    164.2     115.0     114.4    123.1    116.8    171.2    121.8
          II    144.5    176.5     122.1    165.2     114.6     114.4    124.9    117.2    171.8    122.2
         III    144.1    175.8     122.0    166.2     114.5     115.3    127.4    118.6    155.6    122.0
          IV    145.9    178.5     122.3    168.3     114.4     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    168.6     113.4     116.3    129.1    119.8    133.0    121.0
          II    147.4    178.8     121.3    169.7     112.9     115.1    129.2    118.9    134.7    120.4
         III    148.6    178.4     120.1    171.8     112.5     115.6    129.8    119.4    145.3    121.8
          IV    148.0    174.6     117.9    173.7     116.3     117.3    134.1    121.8    129.5    122.5

      ANNUAL    147.2    177.2     120.3    170.9     113.7     116.1    130.5    120.0    135.7    121.4

2009       I   r145.3   r166.6     114.7   r171.6    r115.6    r118.1   r139.1   r123.8   r127.5   r124.1
          II    147.5    165.5     112.2    172.4     115.7     116.9    138.7    122.7    134.2    123.8
----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

2007       I     -0.2      0.2       0.4      4.3       0.4       4.5      7.5      5.3    -10.2      3.2
          II      2.8      3.2       0.4      2.5      -1.6      -0.3      5.8      1.4      1.5      1.4
         III     -1.1     -1.5      -0.4      2.3      -0.1       3.4      8.2      4.8    -32.7     -0.7
          IV      5.3      6.2       0.9      5.3      -0.4       0.0      1.5      0.5    -13.8     -1.3

      ANNUAL      1.0      1.7       0.7      3.6       0.8       2.6      5.8      3.5     -9.9      1.7

2008       I     -2.7     -3.6      -1.0      0.7      -3.7       3.5      3.9      3.6    -38.0     -1.9
          II      6.9      4.4      -2.4      2.6      -1.8      -4.0      0.5     -2.7      5.0     -2.0
         III      3.2     -0.8      -3.9      4.9      -1.2       1.6      1.8      1.6     35.5      4.8
          IV     -1.4     -8.3      -6.9      4.6      14.1       6.1     13.9      8.3    -37.0      2.4

      ANNUAL      1.9      0.4      -1.5      3.0      -0.8       1.1      3.7      1.8    -16.3     -0.4

2009       I    r-7.3   r-17.1     -10.5    r-4.7     r-2.4      r2.9    r15.8     r6.6    r-5.8      5.3
          II      6.2     -2.6      -8.3      1.8       0.4      -4.2     -1.3     -3.3     22.5     -1.1
----------------------------------------------------------------------------------------------------------
                          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      1.7      2.6       0.9      3.7       1.0       2.0      5.0      2.8     -2.2      2.1
         III      0.5      0.9       0.4      4.0       1.6       3.5      7.0      4.5    -18.7      1.1
          IV      1.6      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       0.8       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      2.0      1.3      -0.7      2.7      -1.5       0.7      3.5      1.5    -21.6     -1.5
         III      3.1      1.5      -1.6      3.4      -1.8       0.2      1.9      0.7     -6.6     -0.1
          IV      1.4     -2.2      -3.6      3.2       1.6       1.7      4.9      2.6    -13.6      0.8

      ANNUAL      1.9      0.4      -1.5      3.0      -0.8       1.1      3.7      1.8    -16.3     -0.4

2009       I     r0.2    r-5.8      -6.0     r1.8      r2.0      r1.6     r7.7      3.4    r-4.1      2.6
          II      0.0     -7.4      -7.4      1.6       2.5       1.5      7.3      3.2     -0.4      2.8
----------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                        September 2, 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 +1.4 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 first 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 1978-2008 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.




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             89.1         92.4        103.8        r80.6           r97.2        r90.5
       1988             90.9         97.2        106.9        r83.5           r97.1        r91.8
       1989             91.9         98.8        107.6        r86.0           r95.9        r93.6

       1990             93.9         98.5        104.9        r90.1           r95.7        r96.0
       1991             96.3         96.8        100.5        r95.5           r97.9        r99.1
       1992            100.0        100.0        100.0        100.0           100.0        100.0
       1993            102.6        103.9        101.3       r102.3           r99.8        r99.7
       1994            106.2        110.1        103.7       r104.8          r100.1        r98.7

       1995            111.0        115.9        104.4       r106.5           r99.3        r95.9
       1996            115.0        119.8        104.2       r108.3           r98.4        r94.1
       1997            121.3        128.7        106.0       r110.9           r98.7        r91.4
       1998            127.9        135.3        105.8       r117.8          r103.4        r92.1
       1999            133.7        140.4        105.1       r123.0          r105.7        r92.0

       2000            139.1        144.2        103.7       r132.5          r110.2        r95.3
       2001            141.2        136.9         96.9       r137.5          r111.2        r97.4
       2002            151.0        136.0         90.1       r145.1          r115.5        r96.1
       2003            160.4        137.3         85.6       r156.7          r122.0        r97.7
       2004            164.0        139.7         85.2       r157.9          r119.7        r96.3

       2005            171.9        144.8         84.3       r163.2          r119.7        r94.9
       2006            173.7        147.5         84.9       r166.4          r118.2        r95.8
       2007            179.2        149.5         83.4       r173.6          r119.9        r96.9
       2008            180.7        144.9         80.2       r178.7          r118.9        r98.9
 ----------------------------------------------------------------------------------------------
 See footnotes following Table 6.                            September 2, 2009
 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             88.5         94.2        106.5         80.7            97.3        r91.1
       1988             90.4        100.0        110.6         82.9            96.5         91.7
       1989             91.1        101.1        110.9         85.4            95.2         93.7

       1990             92.9         99.8        107.4         89.1            94.7         95.9
       1991             94.6         96.0        101.4         94.8            97.2       r100.2
       1992            100.0        100.0        100.0        100.0           100.0        100.0
       1993            103.9        105.4        101.4       r102.0            99.5         98.1
       1994            109.1        114.2        104.7        104.5            99.9         95.8

       1995            115.9        123.3        106.3        105.3           r98.2         90.8
       1996            122.1        131.0        107.3        106.4            96.7         87.2
       1997            130.5        144.1        110.4        108.3            96.3         82.9
       1998            140.6        156.1        111.0        115.3           101.1         82.0
       1999            150.7        166.5        110.5        120.3           103.4         79.8

       2000            158.1        173.6        109.8       r129.8           107.9         82.1
       2001            159.0        162.1        101.9       r133.6          r108.0        r84.0
       2002            171.0        159.9         93.5       r140.1          r111.5        r82.0
       2003            183.2        162.2         88.5       r153.0          r119.1        r83.5
       2004            186.3        165.9         89.1       r152.5          r115.6        r81.9

       2005            196.2        174.5         89.0       r157.2          r115.3        r80.2
       2006            200.4        180.3         90.0       r160.6          r114.1        r80.2
       2007            208.4        183.5         88.1       r168.2          r116.2        r80.7
       2008            210.4        177.6         84.4       r173.0          r115.1        r82.2
 ----------------------------------------------------------------------------------------------
 See footnotes following Table 6.                            September 2, 2009
 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             91.4         91.1         99.7         79.8            96.3         87.4
       1988             93.2         94.5        101.4         83.6            97.2         89.7
       1989             94.0         96.4        102.5         86.3            96.3        r91.8

       1990             96.0         97.1        101.1         91.4            97.1        r95.3
       1991             98.3         97.4         99.1         96.4            98.9         98.1
       1992            100.0        100.0        100.0        100.0           100.0        100.0
       1993            101.2        102.4        101.2        102.7           100.3        101.6
       1994            103.5        105.7        102.1        105.0           100.4        101.5

       1995            106.2        107.7        101.5        108.1           100.9        101.9
       1996            108.4        107.8         99.4        110.8           100.7        102.3
       1997            112.8        112.2         99.5        114.7           102.1       r101.7
       1998            115.8        113.4         97.9        121.0           106.2        104.5
       1999            116.9        113.3         96.9       r126.3           108.5        108.0

       2000            120.7        114.1         94.5        135.4           112.6        112.2
       2001            123.4        110.4         89.4       r143.2          r115.9       r116.0
       2002            130.5        110.7         84.8       r153.2          r121.9       r117.4
       2003            136.7        111.1         81.3       r162.2          r126.3       r118.6
       2004            141.7        112.4         79.4       r166.5          r126.3       r117.5

       2005            148.6        114.7         77.2       r172.5          r126.5       r116.1
       2006            148.9        115.1         77.3       r175.1          r124.3       r117.6
       2007            151.9        116.1         76.4       r181.5          r125.3       r119.5
       2008            152.7        112.7         73.8       r187.4          r124.6       r122.7
 ----------------------------------------------------------------------------------------------
 See footnotes following Table 6.                            September 2, 2009
 r=revised                                                   Source: Bureau of Labor Statistics


Last Modified Date: September 02, 2009