Productivity and Costs News Release



Transmission of material in this release is embargoed until        USDL 16-0209              
8:30 a.m. (EST) Thursday, February 4, 2016

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




                           PRODUCTIVITY AND COSTS
           Fourth Quarter and Annual Averages 2015, Preliminary



Nonfarm business sector labor productivity decreased at a 3.0-percent annual 
rate during the fourth quarter of 2015, the U.S. Bureau of Labor Statistics 
reported today, as output increased 0.1 percent and hours worked increased 
3.3 percent. (All quarterly percent changes in this release are seasonally 
adjusted annual rates.) From the fourth quarter of 2014 to the fourth quarter 
of 2015, productivity increased 0.3 percent. (See table A.) Annual average 
productivity increased 0.6 percent from 2014 to 2015. (See table C.) 

Labor productivity, or output per hour, is calculated by dividing an index of 
real output by an index of hours worked of all persons, including employees, 
proprietors, and unpaid family workers.            
      
Unit labor costs in the nonfarm business sector increased 4.5 percent in the 
fourth quarter of 2015, reflecting a 1.3-percent increase in hourly 
compensation and a 3.0-percent decrease in productivity. Unit labor costs 
increased 2.8 percent over the last four quarters. (See tables A and 2.) 

BLS calculates unit labor costs as the ratio of hourly compensation to labor 
productivity. Increases in hourly compensation tend to increase unit labor 
costs, and increases in output per hour tend to reduce them.

Manufacturing sector labor productivity decreased 0.4 percent in the fourth 
quarter of 2015, as output increased 0.5 percent and hours worked increased 
0.9 percent. Productivity decreased 1.0 percent in the durable goods 
manufacturing sector and increased 0.3 percent in the nondurable goods sector. 
(See tables A, 3, 4, and 5.) Over the last four quarters, manufacturing 
productivity increased 1.5 percent, as output increased 1.1 percent and hours 
decreased 0.4 percent. Unit labor costs in manufacturing increased 3.6 percent 
in the fourth quarter of 2015 and increased 1.9 percent from the same quarter 
a year ago. (See tables A and 3.) 

The concepts, sources, and methods used for the manufacturing output series 
differ from those used in the business and nonfarm business output series; 
these output measures are not directly comparable. See the Technical Notes for 
a more detailed explanation. 

Table C presents annual average changes for the most recent five years for the 
nonfarm business sector and the total manufacturing sector. Nonfarm business 
sector productivity grew 0.6 percent in 2015, as output and hours increased 
2.8 percent and 2.2 percent, respectively. The increase in hours was due 
solely to an increase in employment of 2.3 percent, which was the largest 
employment gain since a 2.3-percent increase in 1998.  Productivity increased 
at an annual rate of less than 1.0 percent in each of the last five years, 
reflecting steady growth in both output and hours during these years. The 
average annual rate of productivity growth from 2007 to 2015--corresponding to 
the current business cycle--is 1.2 percent, well below the long-term rate from 
1947 to 2015 of 2.1 percent.

Unit labor costs in the nonfarm business sector rose 2.4 percent in 2015, 
reflecting increases of 3.0 percent in hourly compensation and 0.6 percent in 
productivity. The increases in unit labor costs and hourly compensation are 
the largest since 2007, when these series rose 2.7 percent and 4.3 percent, 
respectively. Real hourly compensation, which takes into account changes in 
consumer prices, increased 2.8 percent in 2015. This is the largest annual 
increase in real hourly compensation since a 3.9-percent increase in 2000.

In the manufacturing sector, productivity increased 1.3 percent in 2015, which 
is the same rate of increase as in 2014. The average annual rate of 
productivity growth from 2007 to 2015 is 2.1 percent, which is below the long-
term rate from 1987 to 2015 of 3.4 percent. Unit labor costs increased 1.3 
percent in 2015, which is similar to a 1.4-percent increase in 2014. Real 
hourly compensation in manufacturing increased 2.4 percent in 2015.

Revised measures

Revised and previous measures for the third quarter of 2015 are shown in 
tables B and D and cover the following major sectors: nonfarm business,
business, manufacturing, and nonfinancial corporations.

In the third quarter of 2015, nonfarm business productivity was revised down 
0.1 percentage point, to an increase of 2.1 percent. (See table B.) Unit labor 
costs in the nonfarm business sector increased 1.9 percent in the third 
quarter--rather than 1.8 percent as previously reported.

In the manufacturing sector, productivity was revised down 0.1 percentage 
point, to an increase of 5.0 percent. Manufacturing unit labor costs increased 
2.3 percent, the same rate as previously reported.

In the nonfinancial corporate sector, productivity was revised down 1.2 
percentage points in the third quarter of 2015, to an increase of 1.7 percent. 
This downward revision to productivity is due solely to a 1.2 percentage point 
downward revision to output. (See table D.)

Quarterly and annual data for all sectors from 2013 to 2015 appear in tables 
1-6. Full historical measures can be found on the Productivity and Costs home 
page: www.bls.gov/lpc/#data.
_____________   






The revised Productivity and Costs news release for fourth-quarter 2015 is 
scheduled to be released on Thursday, March 3, 2016 at 8:30 a.m. (EST).






=======================================================================================================
Table A. Preliminary fourth-quarter 2015 measures: percent change from previous quarter, at annual
rate (Q to Q) and from same quarter a year ago (Y to Y)

Sector                    Nonfarm                                        Durable         Nondurable
                          Business         Business      Manufacturing   Manufacturing   Manufacturing
                       Q to Q   Y to Y  Q to Q  Y to Y  Q to Q  Y to Y  Q to Q  Y to Y  Q to Q  Y to Y
------------------------------------------------------------------------------------------------------- 
Labor Productivity      -3.0      0.3    -2.7     0.5    -0.4     1.5    -1.0     1.5     0.3     1.2
Output                   0.1      1.9     0.6     2.1     0.5     1.1    -0.2     0.6     1.5     1.7
Hours worked             3.3      1.5     3.4     1.5     0.9    -0.4     0.8    -0.9     1.1     0.5
Hourly compensation      1.3      3.1     1.1     3.1     3.2     3.4     3.6     3.1     2.6     4.1
Real hourly 
 compensation            1.1      2.7     0.9     2.7     3.0     3.0     3.3     2.7     2.4     3.6
Unit labor costs         4.5      2.8     3.9     2.5     3.6     1.9     4.6     1.6     2.3     2.8
=======================================================================================================
Table B. Revised and previous measures: third quarter 2015 

Sector            Nonfarm                                             Durable           Nondurable
                  Business         Business         Manufacturing     Manufacturing     Manufacturing
              Revised Previous  Revised Previous  Revised Previous  Revised Previous  Revised Previous
-------------------------------------------------------------------------------------------------------
                                Percent change, annual rate, third quarter 2015
Labor 
 Productivity    2.1     2.2      2.6      2.7      5.0      5.1      6.8      6.9      2.2      2.3
Output           1.8     1.8      2.2      2.3      3.2      3.2      3.9      3.7      2.4      2.7
Hours worked    -0.3    -0.3     -0.4     -0.4     -1.7     -1.8     -2.7     -3.0      0.2      0.3
Hourly 
 compensation    4.1     4.0      4.1      4.1      7.4      7.5      7.3      7.5      7.8      7.7
Real hourly
 compensation    2.5     2.4      2.5      2.4      5.7      5.8      5.6      5.9      6.1      6.0
Unit labor
 costs           1.9     1.8      1.6      1.3      2.3      2.3      0.4      0.6      5.5      5.3
=======================================================================================================
Table C. Annual average changes in productivity and related measures: 2011-2015

Sector                            Nonfarm Business                         Manufacturing
                        2015    2014    2013    2012    2011  |  2015    2014    2013    2012     2011
--------------------------------------------------------------|----------------------------------------
Labor Productivity       0.6     0.7     0.0     0.9     0.2  |   1.3     1.3     0.7     0.7      5.6
Output                   2.8     3.0     1.7     3.1     2.2  |   2.2     2.9     1.5     3.0      7.8
Hours worked             2.2     2.3     1.7     2.2     2.0  |   0.9     1.6     0.8     2.3      2.1
Hourly compensation      3.0     2.7     1.1     2.7     2.2  |   2.6     2.7     0.2     1.8      1.7
Real hourly                                                   |
 compensation            2.8     1.1    -0.4     0.6    -0.9  |   2.4     1.0    -1.2    -0.3     -1.4
Unit labor costs         2.4     2.0     1.1     1.7     2.1  |   1.3     1.4    -0.5     1.0     -3.6
=======================================================================================================
Table D. Nonfinancial corporations: revised and previous third-quarter 2015 productivity and cost
measures          
                                                          Real 
               Labor                         Hourly       hourly       Unit                   Implicit
               produc-             Hours     compen-      compen-      labor      Unit        price
               tivity    Output    worked    sation       sation       costs      profits     deflator
-------------------------------------------------------------------------------------------------------
                                Percent change, annual rate, third quarter 2015
Q to Q Revised   1.7      3.1       1.4        4.2         2.5           2.4      -6.6          0.5
Q to Q Previous  2.9      4.3       1.4        4.1         2.5           1.2       0.7          0.5
=======================================================================================================



				TECHNICAL NOTES

Labor Hours

Hours data for the labor productivity and cost measures include hours worked
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, counting a person who is employed by two 
or more establishments at each place of employment. 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) for 2001 forward and data from 
the BLS Hours at Work survey, conducted for this purpose, 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 to estimate hours worked for farm labor, nonfarm 
proprietors, and nonfarm unpaid family workers. Using CPS information on 
employment and hours worked at primary jobs and all other jobs, separately, 
the BLS productivity measures assign all hours worked to the correct 
industrial sector. Hours 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.

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 76 percent of the value of GDP in 
2015. Nonfarm business, which excludes farming, accounted for about 75 
percent of GDP in 2015.

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 indexes 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. 

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 
49 percent of the value of GDP in 2014.
     
Labor Productivity

The measure describes the relationship between real output and the labor time 
involved in its production. Measures of labor productivity growth show the 
changes from period to period in the amount of goods and services produced 
per hour worked. 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

The measure includes accrued wages and salaries, supplements, employer 
contributions to employee benefit plans, and taxes. 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

These measures describe the relationship between compensation per hour and
labor 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 percent 
changes from the previous quarter presented at a compound annual rate, as
percent changes from the corresponding quarter of the previous year, and as
index number series where 2009=100. 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. A complete historical series of these index numbers are 
available at the BLS web site, 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).

For a more detailed explanation of methodology see "Technical Information 
About the Major Sector Productivity and Costs Methods" at 
www.bls.gov/lpc/lpcmethods.pdf.
      
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
             Output                            Compen-    compen-               Unit       Implicit
 Year        per hour               Hours      sation     sation      Unit      nonlabor   price
 and         of all                 of all     per hour   per hour    labor     payments   deflator
 quarter     persons     Output     persons      (1)        (2)       costs       (3)        (4)
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)

2015 ANNUAL    0.5         2.9        2.3        2.8        2.7        2.3       -1.4        0.7  

2015 IV       -2.7         0.6        3.4        1.1        0.9        3.9       -4.5        0.3  
     III       2.6 r       2.2 r     -0.4        4.1        2.5 r      1.6 r      0.1 r      0.9  
     II        3.7         5.0        1.2        5.9        2.8        2.1        2.4        2.2  
     I        -1.3         0.6        1.9        1.3        4.4        2.6       -3.7       -0.1  

2014 ANNUAL    0.6         3.0        2.4        2.6        1.0        2.0        0.6        1.4  

2014 IV       -2.4         2.6        5.2        3.0        3.9        5.6       -8.2       -0.6  
     III       2.5         5.5        2.9        2.5        1.3        0.0        2.9        1.2  
     II        2.9         5.7        2.7       -0.9       -3.2       -3.7       10.6        2.3  
     I        -3.6        -1.7        2.0        5.9        3.7        9.9       -8.5        1.5  

2013 ANNUAL    0.4         2.0        1.6        1.2       -0.2        0.8        2.4        1.5  

2013 IV        3.4         5.1        1.7        2.1        0.7       -1.2        4.4        1.2  
     III       1.3         3.9        2.5        0.5       -1.8       -0.9        5.3        1.7  
     II        0.6         1.6        1.0        6.3        6.5        5.7       -5.6        0.6  
     I         1.2         2.5        1.3       -8.6       -9.9       -9.7       18.8        1.6  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2015 ANNUAL    0.5         2.9        2.3        2.8        2.7        2.3       -1.4        0.7  

2015 IV        0.5         2.1        1.5        3.1        2.7        2.5       -1.4        0.8  
     III       0.6         2.6        2.0        3.6        3.4        2.9       -2.4        0.6  
     II        0.6         3.4        2.8        3.2        3.1        2.5       -1.8        0.7  
     I         0.4         3.6        3.2        1.5        1.5        1.1        0.2        0.7  

2014 ANNUAL    0.6         3.0        2.4        2.6        1.0        2.0        0.6        1.4  

2014 IV       -0.2         3.0        3.2        2.6        1.4        2.8       -1.1        1.1  
     III       1.3         3.6        2.3        2.4        0.6        1.1        2.1        1.5  
     II        1.0         3.2        2.2        1.9       -0.2        0.9        2.7        1.7  
     I         0.4         2.2        1.8        3.7        2.2        3.3       -1.3        1.3  

2013 ANNUAL    0.4         2.0        1.6        1.2       -0.2        0.8        2.4        1.5  

2013 IV        1.6         3.3        1.6       -0.1       -1.3       -1.7        5.4        1.3  
     III       0.3         2.0        1.7        2.0        0.5        1.7        0.9        1.3  
     II       -0.3         1.2        1.5        2.0        0.6        2.3        0.4        1.5  
     I         0.1         1.4        1.3        1.1       -0.6        1.0        3.1        1.9  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2015 ANNUAL  105.8       117.2      110.8      114.3      103.4      108.0      110.6      109.1  

2015 IV      105.8       118.0      111.5      115.5      104.1      109.2      109.8      109.4  
     III     106.5 r     117.8 r    110.6 r    115.2 r    103.9 r    108.1 r    111.1 r    109.4 r
     II      105.8       117.2      110.7      114.0      103.2      107.7      111.1      109.1  
     I       104.9       115.8      110.4      112.4      102.5      107.1      110.4      108.5  

2014 ANNUAL  105.2       113.9      108.3      111.1      100.7      105.6      112.2      108.4  

2014 IV      105.2       115.6      109.9      112.0      101.4      106.5      111.4      108.5  
     III     105.9       114.8      108.5      111.2      100.4      105.0      113.9      108.7  
     II      105.2       113.3      107.7      110.5      100.1      105.0      113.1      108.4  
     I       104.5       111.8      107.0      110.7      100.9      106.0      110.2      107.8  

2013 ANNUAL  104.6       110.6      105.7      108.3       99.7      103.6      111.5      106.9  

2013 IV      105.4       112.2      106.5      109.2      100.0      103.6      112.7      107.4  
     III     104.6       110.9      106.0      108.6       99.9      103.9      111.5      107.1  
     II      104.2       109.8      105.4      108.5      100.3      104.1      110.1      106.6  
     I       104.1       109.4      105.1      106.8       98.7      102.7      111.7      106.4  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   February 4, 2016
r=revised                                                        Source: Bureau of Labor Statistics





Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs, and prices,
seasonally adjusted
                                                          Real
             Output                            Compen-    compen-               Unit       Implicit
 Year        per hour               Hours      sation     sation      Unit      nonlabor   price
 and         of all                 of all     per hour   per hour    labor     payments   deflator
 quarter     persons     Output     persons      (1)        (2)       costs       (3)        (4)
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)

2015 ANNUAL    0.6         2.8        2.2        3.0        2.8        2.4       -0.9        1.0  

2015 IV       -3.0         0.1        3.3        1.3        1.1        4.5       -4.4        0.7  
     III       2.1 r       1.8       -0.3        4.1 r      2.5 r      1.9 r     -0.3 r      1.0  
     II        3.5         5.1        1.5        5.6        2.5        2.0        2.7        2.3  
     I        -1.1         0.5        1.6        1.5        4.6        2.6       -2.2        0.5  

2014 ANNUAL    0.7         3.0        2.3        2.7        1.1        2.0        0.9        1.5  

2014 IV       -2.2         2.6        4.9        3.4        4.2        5.7       -8.1       -0.5  
     III       3.1         5.5        2.3        3.2        2.0        0.1        4.1        1.8  
     II        2.8         5.4        2.5       -0.8       -3.1       -3.5        9.5        1.9  
     I        -3.5        -1.2        2.3        5.5        3.4        9.3       -8.4        1.3  

2013 ANNUAL    0.0         1.7        1.7        1.1       -0.4        1.1        2.1        1.5  

2013 IV        3.5         5.2        1.7        2.3        0.9       -1.2        5.7        1.7  
     III       1.4         3.5        2.1        0.9       -1.4       -0.5        5.8        2.2  
     II        0.1         1.1        1.1        6.3        6.5        6.2       -5.0        1.2  
     I        -0.1         1.7        1.8       -9.2      -10.5       -9.1       16.8        1.2  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2015 ANNUAL    0.6         2.8        2.2        3.0        2.8        2.4       -0.9        1.0  

2015 IV        0.3         1.9        1.5        3.1        2.7        2.8       -1.1        1.1  
     III       0.6         2.5        1.9        3.6        3.4        3.0       -2.1 r      0.8  
     II        0.8         3.4        2.6        3.4        3.3        2.6       -1.0        1.0  
     I         0.6         3.5        2.8        1.8        1.9        1.2        0.6        0.9  

2014 ANNUAL    0.7         3.0        2.3        2.7        1.1        2.0        0.9        1.5  

2014 IV        0.0         3.0        3.0        2.8        1.6        2.8       -1.0        1.1  
     III       1.4         3.7        2.2        2.5        0.7        1.1        2.5        1.7  
     II        1.0         3.2        2.2        1.9       -0.1        0.9        2.9        1.8  
     I         0.3         2.1        1.8        3.7        2.3        3.4       -0.7        1.6  

2013 ANNUAL    0.0         1.7        1.7        1.1       -0.4        1.1        2.1        1.5  

2013 IV        1.2         2.9        1.7       -0.1       -1.3       -1.3        5.5        1.6  
     III      -0.2         1.6        1.9        1.9        0.3        2.1        0.5        1.4  
     II       -0.8         1.0        1.8        1.7        0.3        2.5       -0.1        1.4  
     I        -0.2         1.4        1.6        0.8       -0.9        1.0        2.5        1.6  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2015 ANNUAL  105.8       117.1      110.7      114.4      103.6      108.2      110.1      109.0  

2015 IV      105.7       117.8      111.5      115.7      104.3      109.5      109.3      109.4  
     III     106.5 r     117.7 r    110.6 r    115.3 r    104.0 r    108.3 r    110.6 r    109.2  
     II      105.9       117.2      110.7      114.1      103.3      107.8      110.7      109.0  
     I       105.0       115.8      110.2      112.6      102.7      107.2      109.9      108.3  

2014 ANNUAL  105.2       114.0      108.4      111.1      100.7      105.7      111.1      107.9  

2014 IV      105.3       115.6      109.8      112.2      101.6      106.5      110.5      108.2  
     III     105.9       114.9      108.5      111.3      100.5      105.1      112.9      108.3  
     II      105.1       113.4      107.9      110.4      100.0      105.0      111.8      107.8  
     I       104.4       111.9      107.2      110.6      100.8      106.0      109.3      107.4  

2013 ANNUAL  104.4       110.6      105.9      108.2       99.6      103.6      110.1      106.3  

2013 IV      105.3       112.2      106.6      109.1      100.0      103.7      111.7      107.0  
     III     104.4       110.8      106.2      108.5       99.8      104.0      110.2      106.5  
     II      104.0       109.9      105.6      108.3      100.1      104.1      108.6      106.0  
     I       104.0       109.6      105.3      106.6       98.6      102.5      110.0      105.7  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   February 4, 2016
r=revised                                                        Source: Bureau of Labor Statistics





Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
                                                                              Real
                 Output                                        Compen-        compen-
 Year            per hour                      Hours           sation         sation         Unit
 and             of all                        of all          per hour       per hour       labor
 quarter         persons        Output         persons           (1)            (2)          costs
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)

2015 ANNUAL        1.3            2.2            0.9            2.6            2.4            1.3  

2015 IV           -0.4            0.5            0.9            3.2            3.0            3.6  
     III           5.0 r          3.2           -1.7 r          7.4 r          5.7 r          2.3  
     II            2.2            1.3           -0.8            5.5            2.4            3.2 r
     I            -0.6           -0.5            0.1           -2.2            0.8           -1.6  

2014 ANNUAL        1.3            2.9            1.6            2.7            1.0            1.4  

2014 IV           -0.4            4.0            4.4            4.3            5.1            4.7  
     III           2.9            4.4            1.4            2.7            1.5           -0.2  
     II            2.8            6.3            3.4           -1.8           -4.2           -4.4  
     I             2.0            1.0           -1.0            8.7            6.5            6.5  

2013 ANNUAL        0.7            1.5            0.8            0.2           -1.2           -0.5  

2013 IV           -0.5            3.4            3.9           -0.3           -1.6            0.2  
     III          -0.9            0.6            1.5            1.0           -1.3            1.9  
     II            2.5            0.1           -2.3            4.1            4.3            1.6  
     I             1.1            3.5            2.3           -5.4           -6.7           -6.4  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2015 ANNUAL        1.3            2.2            0.9            2.6            2.4            1.3  

2015 IV            1.5            1.1           -0.4            3.4            3.0            1.9  
     III           1.5            2.0            0.5 r          3.7            3.5            2.1  
     II            1.0            2.3            1.2            2.5            2.5            1.5  
     I             1.2            3.5            2.3            0.7            0.8           -0.4  

2014 ANNUAL        1.3            2.9            1.6            2.7            1.0            1.4  

2014 IV            1.8            3.9            2.0            3.4            2.2            1.5  
     III           1.8            3.7            1.9            2.2            0.5            0.4  
     II            0.8            2.8            2.0            1.8           -0.2            1.0  
     I             0.8            1.3            0.5            3.3            1.9            2.5  

2013 ANNUAL        0.7            1.5            0.8            0.2           -1.2           -0.5  

2013 IV            0.5            1.9            1.3           -0.2           -1.4           -0.7  
     III           1.1            1.5            0.4            0.9           -0.6           -0.2  
     II            1.0            1.2            0.2            0.4           -0.9           -0.6  
     I             0.1            1.2            1.2           -0.3           -2.0           -0.4  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2015 ANNUAL      121.6          131.1          107.8          110.7          100.1           91.0  

2015 IV          122.4          131.9          107.8          112.7          101.6           92.1  
     III         122.5 r        131.7 r        107.5 r        111.8 r        100.8 r         91.2 r
     II          121.0 r        130.7 r        108.0          109.8           99.4           90.7 r
     I           120.4          130.2          108.2          108.4           98.8           90.0  

2014 ANNUAL      120.0          128.3          106.9          107.9           97.8           89.9  

2014 IV          120.6          130.4          108.2          109.0           98.6           90.4  
     III         120.7          129.1          107.0          107.8           97.4           89.3  
     II          119.8          127.8          106.6          107.1           97.0           89.4  
     I           119.0          125.8          105.7          107.6           98.1           90.4  

2013 ANNUAL      118.5          124.6          105.2          105.0           96.8           88.7  

2013 IV          118.4          125.5          106.0          105.4           96.5           89.0  
     III         118.6          124.5          105.0          105.4           96.9           88.9  
     II          118.8          124.3          104.6          105.2           97.3           88.5  
     I           118.1          124.2          105.2          104.1           96.2           88.2  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   February 4, 2016
r=revised                                                        Source: Bureau of Labor Statistics





Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
                                                                              Real
                 Output                                        Compen-        compen-
 Year            per hour                      Hours           sation         sation         Unit
 and             of all                        of all          per hour       per hour       labor
 quarter         persons        Output         persons           (1)            (2)          costs
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)

2015 ANNUAL        1.4            2.1            0.7            2.3            2.1            0.9  

2015 IV           -1.0           -0.2            0.8            3.6            3.3            4.6  
     III           6.8 r          3.9 r         -2.7 r          7.3 r          5.6 r          0.4 r
     II            2.8            1.4           -1.4            5.3            2.3            2.4 r
     I            -2.3           -2.4           -0.1           -3.4           -0.4           -1.1  

2014 ANNUAL        1.9            4.2            2.3            2.1            0.5            0.2  

2014 IV            0.5            3.9            3.3            5.0            5.9            4.5  
     III           3.2            6.4            3.1            2.3            1.1           -0.9  
     II            3.0            8.7            5.5           -2.6           -5.0           -5.5  
     I             2.6            1.5           -1.1            8.6            6.4            5.8  

2013 ANNUAL        0.7            1.8            1.1           -0.4           -1.8           -1.1  

2013 IV            0.7            5.5            4.8           -2.5           -3.8           -3.1  
     III          -0.3            1.4            1.7            1.7           -0.6            2.0  
     II            2.4           -0.3           -2.6            3.5            3.7            1.0  
     I            -0.5            3.4            3.9           -6.7           -8.0           -6.2  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2015 ANNUAL        1.4            2.1            0.7            2.3            2.1            0.9  

2015 IV            1.5            0.6           -0.9            3.1            2.7            1.6  
     III           1.9            1.7 r         -0.2 r          3.5            3.3 r          1.5 r
     II            1.0            2.3            1.2            2.2            2.2            1.2  
     I             1.1            4.0            2.9            0.3            0.3           -0.8  

2014 ANNUAL        1.9            4.2            2.3            2.1            0.5            0.2  

2014 IV            2.3            5.1            2.7            3.2            2.0            0.9  
     III           2.4            5.5            3.0            1.3           -0.4           -1.0  
     II            1.5            4.2            2.7            1.2           -0.9           -0.3  
     I             1.3            2.0            0.7            2.7            1.3            1.4  

2013 ANNUAL        0.7            1.8            1.1           -0.4           -1.8           -1.1  

2013 IV            0.6            2.5            1.9           -1.1           -2.3           -1.6  
     III           1.0            1.7            0.7            0.9           -0.6           -0.1  
     II            0.8            1.1            0.3           -0.1           -1.5           -0.9  
     I             0.6            2.1            1.5           -1.1           -2.8           -1.8  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2015 ANNUAL      125.6          139.5          111.1          108.9           98.6           86.7  

2015 IV          126.6          140.2          110.7          111.0          100.0           87.7  
     III         126.9 r        140.3 r        110.5 r        110.0 r         99.2 r         86.7 r
     II          124.8 r        138.9 r        111.3          108.1           97.9           86.6 r
     I           124.0          138.4          111.7          106.7           97.3           86.1  

2014 ANNUAL      123.9          136.5          110.2          106.5           96.5           86.0  

2014 IV          124.7          139.3          111.7          107.6           97.4           86.3  
     III         124.5          138.0          110.8          106.3           96.0           85.4  
     II          123.6          135.9          110.0          105.7           95.8           85.6  
     I           122.6          133.1          108.5          106.4           97.0           86.8  

2013 ANNUAL      121.6          131.0          107.8          104.3           96.1           85.8  

2013 IV          121.9          132.6          108.8          104.2           95.5           85.5  
     III         121.7          130.8          107.5          104.9           96.4           86.2  
     II          121.8          130.4          107.1          104.5           96.6           85.8  
     I           121.0          130.4          107.8          103.6           95.7           85.6  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   February 4, 2016
r=revised                                                        Source: Bureau of Labor Statistics





Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
                                                                              Real
                 Output                                        Compen-        compen-
 Year            per hour                      Hours           sation         sation         Unit
 and             of all                        of all          per hour       per hour       labor
 quarter         persons        Output         persons           (1)            (2)          costs
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)

2015 ANNUAL        1.1            2.3            1.2            3.2            3.1            2.1  

2015 IV            0.3            1.5            1.1            2.6            2.4            2.3  
     III           2.2 r          2.4 r          0.2 r          7.8 r          6.1 r          5.5 r
     II            1.1            1.2            0.1            5.9            2.8            4.7  
     I             1.3            1.7            0.4            0.2            3.2           -1.1  

2014 ANNUAL        1.0            1.5            0.5            3.7            2.0            2.6  

2014 IV           -2.1            4.1            6.3            3.1            3.9            5.3  
     III           3.6            2.1           -1.4            3.2            2.1           -0.4  
     II            3.7            3.7            0.0           -0.6           -3.0           -4.2  
     I             1.4            0.4           -0.9            8.8            6.6            7.3  

2013 ANNUAL        0.9            1.1            0.2            1.2           -0.2            0.3  

2013 IV           -1.4            1.0            2.4            4.0            2.5            5.4  
     III          -1.6           -0.4            1.2           -0.3           -2.6            1.3  
     II            2.1            0.3           -1.8            5.3            5.5            3.1  
     I             3.6            3.3           -0.3           -3.2           -4.6           -6.6  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2015 ANNUAL        1.1            2.3            1.2            3.2            3.1            2.1  

2015 IV            1.2            1.7            0.5            4.1            3.6            2.8  
     III           0.6            2.3 r          1.7 r          4.2            4.0            3.6 r
     II            1.0            2.3            1.3            3.1            3.0            2.1  
     I             1.6            2.9            1.3            1.5            1.5           -0.2  

2014 ANNUAL        1.0            1.5            0.5            3.7            2.0            2.6  

2014 IV            1.6            2.6            0.9            3.6            2.4            1.9  
     III           1.8            1.8            0.0            3.8            2.0            1.9  
     II            0.5            1.2            0.7            2.9            0.8            2.4  
     I             0.1            0.4            0.2            4.4            2.9            4.3  

2013 ANNUAL        0.9            1.1            0.2            1.2           -0.2            0.3  

2013 IV            0.7            1.1            0.4            1.4            0.1            0.7  
     III           1.3            1.2           -0.1            0.9           -0.6           -0.4  
     II            1.5            1.5            0.0            1.5            0.1            0.0  
     I             0.2            0.8            0.6            1.2           -0.5            1.1  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2015 ANNUAL      113.5          116.6          102.7          113.3          102.5           99.8  

2015 IV          114.0          117.4          103.0          115.3          103.9          101.2  
     III         113.9 r        116.9 r        102.7 r        114.6 r        103.3 r        100.6 r
     II          113.3 r        116.2 r        102.6          112.4          101.8           99.2 r
     I           113.0          115.9          102.6          110.8          101.1           98.1  

2014 ANNUAL      112.3          114.0          101.5          109.8           99.5           97.7  

2014 IV          112.6          115.4          102.5          110.8          100.3           98.4  
     III         113.2          114.3          100.9          109.9           99.3           97.1  
     II          112.2          113.6          101.3          109.1           98.8           97.2  
     I           111.2          112.6          101.3          109.2           99.6           98.3  

2013 ANNUAL      111.2          112.3          101.0          105.9           97.5           95.3  

2013 IV          110.8          112.5          101.5          107.0           98.0           96.5  
     III         111.2          112.2          100.9          105.9           97.4           95.3  
     II          111.6          112.3          100.6          106.0           98.0           95.0  
     I           111.0          112.2          101.1          104.7           96.7           94.2  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   February 4, 2016
r=revised                                                        Source: Bureau of Labor Statistics





Table 6. Nonfinancial corporate sector: Productivity, hourly compensation, unit labor costs, unit profits,
and prices, seasonally adjusted
                                                     Real               Unit
              Output                       Hourly    hourly             non-      Total   Unit   Implicit
 Year         per all-                     compen-   compen-   Unit     labor     unit    pro-   price
 and          employee          Employee   sation    sation    labor    costs     cost    fits   deflator
 quarter      hour     Output   hours       (1)       (2)      costs     (6)      (7)     (8)      (4)
---------------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

2015 III       1.7 r     3.1 r    1.4       4.2 r     2.5       2.4 r    0.2 r    1.7 r   -6.6 r    0.5  
     II        1.6       2.0      0.4       5.7       2.6       4.1     -2.9      1.8      5.8      2.4  
     I        -2.1      -0.3      1.8       0.5       3.6       2.6      3.2      2.8    -19.3     -0.8  

2014 ANNUAL    0.4       3.2      2.8       2.4       0.8       2.0     -1.4      0.9     -0.4      0.7  

2014 IV        3.4       7.4      3.9       1.5       2.3      -1.8     -6.4     -3.3     -6.5     -3.8  
     III       2.4       5.2      2.7       1.6       0.4      -0.8     -1.1     -0.9     17.2      1.6  
     II        1.7       6.2      4.4      -1.7      -4.1      -3.3     -3.4     -3.4     27.4      0.5  
     I        -1.7       0.2      2.0       8.4       6.2      10.3     -0.8      6.5    -22.0      1.9  

2013 ANNUAL    1.0       3.0      2.0       1.3      -0.2       0.3     -0.2      0.1      4.4      0.8  

2013 IV       -0.2       2.3      2.4       0.9      -0.5       1.1      0.8      1.0      0.9      1.0  
     III      -2.0       0.5      2.6      -0.3      -2.6       1.7      1.2      1.6     -7.5      0.2  
     II        4.8       6.0      1.1       4.4       4.6      -0.5     -4.0     -1.6      6.9     -0.4  
     I        -0.5       2.8      3.3      -4.2      -5.6      -3.7      1.8     -1.9     14.6      0.3  
---------------------------------------------------------------------------------------------------------
                       Percent change from corresponding quarter of previous year

2015 III       1.1 r     3.0 r    1.9       2.9       2.8 r     1.8 r   -1.5 r    0.7 r   -7.1 r   -0.5 r
     II        1.3       3.5      2.2       2.3       2.2       1.0     -1.8      0.1     -1.7     -0.2  
     I         1.3       4.6      3.2       0.5       0.5      -0.9     -2.0     -1.2      3.0     -0.6  

2014 ANNUAL    0.4       3.2      2.8       2.4       0.8       2.0     -1.4      0.9     -0.4      0.7  

2014 IV        1.4       4.7      3.3       2.4       1.1       0.9     -2.9     -0.3      2.1      0.0  
     III       0.5       3.4      2.9       2.2       0.4       1.7     -1.1      0.8      4.1      1.3  
     II       -0.6       2.3      2.9       1.7      -0.3       2.3     -0.6      1.4     -1.9      0.9  
     I         0.2       2.2      2.0       3.3       1.9       3.1     -0.7      1.8     -6.1      0.7  

2013 ANNUAL    1.0       3.0      2.0       1.3      -0.2       0.3     -0.2      0.1      4.4      0.8  

2013 IV        0.5       2.9      2.4       0.1      -1.1      -0.4     -0.1     -0.3      3.4      0.3  
     III       2.0       4.2      2.2       1.8       0.3      -0.2     -1.2     -0.5      4.3      0.2  
     II        1.2       3.1      1.9       1.9       0.5       0.7     -0.4      0.3      4.8      1.0  
     I         0.1       1.9      1.8       1.3      -0.4       1.1      0.9      1.0      5.2      1.6  
---------------------------------------------------------------------------------------------------------
                                            Indexes 2009=100

2015 III     109.7 r   123.9 r  112.9 r   113.9 r   102.7 r   103.8 r   95.2 r  100.9 r  142.8 r  105.3 r
     II      109.3     123.0    112.6     112.7     102.0     103.2     95.2    100.5    145.3    105.2  
     I       108.8     122.4    112.4     111.2     101.4     102.1     95.9    100.0    143.2    104.6  

2014 ANNUAL  108.3     119.6    110.5     110.6     100.2     102.1     96.6    100.3    148.0    105.3  

2014 IV      109.4     122.5    111.9     111.0     100.5     101.5     95.1     99.4    151.1    104.8  
     III     108.5     120.3    110.9     110.6      99.9     101.9     96.7    100.2    153.7    105.8  
     II      107.9     118.8    110.1     110.2      99.8     102.1     97.0    100.4    147.7    105.4  
     I       107.4     117.0    108.9     110.7     100.9     103.0     97.8    101.3    139.0    105.2  

2013 ANNUAL  107.9     116.0    107.5     108.0      99.5     100.1     98.0     99.4    148.5    104.6  

2013 IV      107.9     117.0    108.4     108.5      99.4     100.5     98.0     99.7    148.0    104.7  
     III     107.9     116.3    107.7     108.2      99.5     100.2     97.8     99.4    147.6    104.5  
     II      108.5     116.1    107.1     108.3     100.1      99.8     97.5     99.1    150.5    104.4  
     I       107.2     114.5    106.8     107.1      99.0      99.9     98.5     99.5    148.0    104.5  
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                         February 4, 2016
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. Hours and 
compensation 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 
1.6 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 third quarter of 2015.

			      Table Footnotes
      
(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 1978-2014 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 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: February 04, 2016