For release 10:00 a.m. (ET) Thursday, April 25, 2024 USDL-24-0745
Technical information: (202) 691-5606 • productivity@bls.gov • www.bls.gov/productivity
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PRODUCTIVITY AND COSTS BY INDUSTRY
MANUFACTURING AND MINING INDUSTRIES - 2023
Labor productivity declines were widespread among manufacturing industries in 2023, with decreases
in 60 of the 86 four-digit NAICS manufacturing industries, the U.S. Bureau of Labor Statistics reported
today. Of the 51 industries in durable manufacturing, 41 had productivity decreases in 2023 led by a
decline of 15.2 percent in the motor vehicle bodies and trailers manufacturing industry. Although not as
widespread compared to durable goods, productivity declined in 19 of 35 nondurable goods
manufacturing industries led by a 9.4-percent decline in the basic chemicals industry. Productivity fell in
3 of the 5 mining industries in 2023 with the greatest decrease occurring in the support activities for
mining industry (-5.5 percent). (See table 1.)
Hours worked decreased in 44 of the 86 four-digit manufacturing industries in 2023. Hours worked
increased in 4 of 5 mining industries with support activities for mining the highest at 8.1 percent. Nine
mining and manufacturing industries increased both output and hours worked in 2023. Six of these 9
industries had declining labor productivity.
Labor Productivity Trends in Three-Digit NAICS Industries, 2023
Manufacturing
• Labor productivity decreased in 17 of the 21 three-digit NAICS manufacturing industries in
2023. Eleven industries had growth in hours worked.
• Output decreased in 19 industries. Twelve of these industries had an output decline of more
than 2.0 percent.
• The textile mills and apparel industries had the largest productivity gains among the three-
digit NAICS industries (+9.6 percent and +7.7 percent, respectively).
• Beverages and tobacco products manufacturing had the largest productivity decline (-5.9
percent).
Mining
• Labor productivity declined in 2 of the 3 three-digit NAICS mining industries in 2023.
• Oil and gas extraction had a productivity gain of 5.8 percent due to a 7.4-percent increase in
output with a 1.5-percent increase in hours worked.
• Labor productivity fell most in support activities for mining (-5.5 percent) with hours
worked (+8.1 percent) growing faster than output (+2.1 percent).
Trends in Unit Labor Costs in 2023
Unit labor costs reflect the total labor costs required to produce a unit of output. Unit labor costs increase
when hourly compensation growth exceeds productivity growth.
Manufacturing
• In manufacturing, unit labor costs increased in 20 of 21 three-digit NAICS industries in 2023
at an average rate of 6.6 percent. The three industries with the largest growth in unit labor
costs were furniture and related products (+10.1 percent), machinery (+10.1 percent), and
beverages and tobacco products (+9.8 percent). All three industries had declining labor
productivity.
• Unit labor costs increased in 76 out of 86 four-digit NAICS manufacturing industries. Labor
compensation gains were not as widespread as compared to 2022 in these industries. In 2023,
67 manufacturing industries recorded growth in labor compensation. In 2022 that number
was 82. (See table 1.)
Mining
• Unit labor costs increased in 2 of the 3 three-digit NAICS mining industries. The greatest
growth in unit labor costs occurred in support activities for mining at 12.8 percent. Oil and
gas extraction is the only mining industry to have a decline in labor costs at 0.9 percent.
2019 to 2023 Trends
Productivity increased in 36 of the 86 four-digit NAICS manufacturing industries from 2019 to 2023.
Over this period, 3 of the 5 four-digit NAICS mining industries experienced productivity growth. Note
that the annual percent changes for periods of more than 1 year are annualized average rates of change
over the entire period, or a compound annual growth rate. (See table 3.)
Manufacturing
• The two industries with the greatest gains in productivity from 2019 to 2023 were audio and
video equipment (+9.6 percent per year) and magnetic media manufacturing and reproducing
(+8.4 percent). The largest productivity decline occurred in the plywood and engineered
wood products industry (-6.3 percent).
• Output decreased in over half of the four-digit NAICS manufacturing industries from 2019 to
2023. The largest decline in output occurred in the iron and steel mills and ferroalloys
industry (-7.8 percent per year) while the greatest output growth was in the audio and video
equipment manufacturing industry (+6.0 percent).
• Hours worked fell in 51 out of 86 four-digit NAICS manufacturing industries from 2019 to
2023. Apparel knitting mills recorded the largest drop in hours worked (-8.7 percent per
year). However, three industries had growth in hours worked of 5.0 percent or greater over
this period: beverages (+5.9 percent), motor vehicles (+5.4 percent), and other transportation
equipment (+5.0 percent).
Mining
• In 2023, hours worked remained below pre-pandemic levels in all five of the four-digit
NAICS mining industries. The largest decline in hours worked occurred in coal mining
which decreased by 4.5 percent per year from 2019 to 2023.
• Output increased from 2019 to 2023 in three mining industries. The greatest increase in
output occurred in support activities for mining at 7.1 percent per year. Coal mining and
metal ore mining both have yet to return to their pre-pandemic levels of output with annual
decreases of 5.3 percent and 2.7 percent respectively from 2019 to 2023.
Long-Term Trends in Labor Productivity and Unit Labor Costs
Labor Productivity
• Over the entire 1987-2023 period, labor productivity rose in 82 of the 91 manufacturing
and mining industries. Output rose in 46 industries while hours worked increased in only
19. (See table 2.) In the 19 industries where hours worked increased, they rose at a slow
pace of 0.7 percent per year.
• During the 2007-2019 period, productivity increased in 35 industries. Of these industries,
only five had simultaneous growth in output as well as hours worked. Oil and gas
extraction had the greatest growth in output over this period (+7.0 percent).
• In the most recent 2019-2023 period, productivity increased in 39 industries. Hours worked
grew in 34 industries, which is more than the other selected time periods. Beverages had
the highest annual growth in hours worked from 2019 to 2023 (+5.9 percent).
• Support activities for mining had the highest annual growth in productivity (+11.5 percent)
and output (+7.1 percent) of all 91 manufacturing and mining industries.
Unit Labor Costs
• From 1987 to 2023, unit labor costs increased in 79 of the 86 four-digit NAICS manufacturing
industries and in all five mining industries. (See table 2.)
• In both the 2007-2019 and 2019-2023 time periods, unit labor costs increased in 82 out of 86
manufacturing industries and in 3 of the 5 mining industries. From 2007 to 2019, unit labor costs
rose the most in the resin, rubber, and artificial fibers industry (+5.0 percent per year). From
2019 to 2023, unit labor costs rose the most in the plywood and engineered wood products
industry (+11.3 percent).
The computer and peripheral equipment industry recorded the largest productivity gain (+12.2
percent per year) as well as the largest unit labor costs decline (-10.5 percent) during the 1987-2023
period. However, from 2007 to 2019, labor productivity fell (-2.4 percent) as did unit labor costs
(-0.4 percent). For the 2019-2023 period, both labor productivity (+2.0 percent) and unit labor costs
(+2.1 percent) grew.
From 2019 and 2023, the support activities for mining industry posted the greatest productivity
growth (+11.5 percent), and audio and video equipment had the largest unit labor costs decline (-13.5
percent).
Additional Information
Beginning with this news release, estimates of hours worked by self-employed workers and unpaid
family workers reflect a method change that makes industry-level estimates consistent with the newly
composited quarterly major sector estimates that remove variability during seasonal adjustment and
reduce volatility in these workers. A more detailed discussion of the changes is available in the Monthly
Labor Review at www.bls.gov/opub/mlr/2023/article/an-improved-estimate-of-self-employment-
hours.htm.
Manufacturing industry output measures for 2021 and earlier years are constructed primarily using data
from the economic censuses and annual surveys of the U.S. Census Bureau together with data on price
changes primarily from BLS. Manufacturing industry output for 2022 and 2023 is estimated based on
historical relationships between BLS sectoral output, BLS price indexes, and data on industrial
production from the Federal Reserve Board.
Mining industry output measures are constructed primarily using data from the U.S. Energy Information
Administration and the U.S. Geological Survey’s Mineral Commodity Summaries and Mineral
Yearbooks. The data from the U.S. Energy Information Administration are usually revised on a monthly
schedule while the U.S. Geological Survey’s publications are released annually.
Access productivity data at www.bls.gov/productivity/tables/labor-productivity-detailed-industries.xlsx
for:
• Additional industries and sectors
• Detailed data series: indexes of productivity and related measures; rates of change; and levels of
industry employment, hours worked, sectoral output, and labor compensation
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