Productivity and Costs by Industry: Manufacturing and Mining Industries, 2014


For release 10:00 a.m. (EDT) Tuesday, April 28, 2015                                 USDL-15-0754

Technical information: 	(202) 691-5618  •  dipsweb@bls.gov  •  www.bls.gov/lpc 
Media contact:		(202) 691-5902  •  PressOffice@bls.gov

     NOTE: BLS reissued this release on June 10, 2015 to correct errors in NAICS 3121, beverages;
     312, beverages and tobacco products; 3241, petroleum and coal products; 324, petroleum and
     coal products; and 3345, electronic instruments. Corrections have been made to tables 1, 2,
     and 3; no changes were required to the text or charts of the news release.

                                   PRODUCTIVITY AND COSTS BY INDUSTRY:
                                MANUFACTURING AND MINING INDUSTRIES, 2014

Labor productivity - defined as output per hour - rose in about three-quarters of detailed manufacturing 
and mining industries covered in 2014, the U.S. Bureau of Labor Statistics reported today. This was higher 
than 2013, when labor productivity rose in about 60 percent of the covered industries. Output and hours 
also increased in more industries in 2014 than in the previous year. Unit labor costs, which reflect 
the total labor costs required to produce a unit of output, declined in 53 percent of manufacturing 
industries and three out of four mining industries in 2014. Almost two-thirds of industries with 
productivity increases posted declines in unit labor costs. 

Oil and gas extraction recorded the largest increase in labor productivity in 2014, followed by textile and 
fabric finishing and coating mills, and semiconductors and electronic components. The largest decline in 
productivity was in glass and glass products.

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*                             2014 measures available for selected industries                              *
*                                                                                                          *
* Labor productivity and related measures are being released through 2014 for a group of 57 detailed       *
* manufacturing industries and four detailed mining industries. These measures are based on trends in      *
* production and wages. Labor productivity measures for all other detailed manufacturing and mining        *
* industries are being released through 2013.                                                              *
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Labor Productivity and Unit Labor Costs, 2014

Manufacturing: Labor productivity increased in 19 of the 21 NAICS 3-digit manufacturing industries in 
2014, as output increased in 19 industries and hours fell in 8 industries. Productivity rose fastest in 
leather and allied product manufacturing, where output increased slightly while hours declined. 
Of the 21 industries, 14 registered greater productivity growth or smaller productivity declines than in 
the previous year.

Mining: Labor productivity increased in three of the four NAICS 4-digit mining industries covered in 
2014. Oil and gas extraction experienced the largest gain in productivity, spurred by output growth of 
13 percent. Only nonmetallic mineral mining and quarrying recorded an increase in hours that was 
greater than that of output, causing productivity to decline. Productivity growth was less in 2014 than 
2013 for each of these four mining industries.

Productivity Trends in Selected Time Periods

During the 1987-2013 period, productivity rose in all but four manufacturing and mining industries, 
with median productivity growth of approximately 2 percent per year. Productivity growth in this 
period was associated with rising output in many manufacturing and mining industries, while hours 
increased in relatively few. In most industries, productivity advanced as output was produced with 
fewer hours.

Productivity also increased in a majority of industries between 2007 and 2013, despite the fact that the 
period encompassed a severe recession. However, only one quarter of manufacturing and mining 
industries saw increases in output, while even fewer experienced growth in hours.

In 2013, productivity rose in about 57 percent of manufacturing and mining industries. Output increased 
in about two-thirds of the industries, while hours rose in fewer than half the industries.

Additional Information

This release updates productivity measures to 2014 for all 21 NAICS 3-digit and for 57 of the 
86 NAICS 4-digit manufacturing industries. Additionally, productivity measures for all 86 
NAICS 4-digit manufacturing industries have been updated through 2013. Output estimates 
for 2014 are based on trends in industrial production from the Federal Reserve Board and on 
trends from the manufacturers’ shipments, inventories, and orders (M3) survey from the U.S. 
Census Bureau, along with data on price changes from BLS. Labor compensation in 2014 is 
based on trends in industry wages from the BLS Quarterly Census of Employment and Wages 
(QCEW). Data in this release for 2013 and 2014 are preliminary and subject to revision. 

For the first time, the industries included in this news release are classified according to the 2012 
NAICS. Indexes have been rebased from 2002=100 to 2007=100 starting with this release. 
While the rates of change reported by BLS in this release are rounded to one decimal place, all 
percent changes are calculated using index numbers rounded to three decimal places.

Year-to-year movements in industry productivity may be erratic, particularly in smaller 
industries. The annual measures based on sample data may differ from measures generated by a 
census of establishments in the industry. Annual changes in an industry’s output and use of labor 
may reflect cyclical changes in the economy as well as long-term trends. As a result, long-term 
productivity trends tend to be more reliable indicators of industry performance than year-to-year 
changes.

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* Additional information can be obtained by calling the Division of Industry Productivity Studies          *
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Last Modified Date: June 10, 2015