For release 10:00 a.m. (EDT) Wednesday, May 18, 2016 USDL-16-0988
Technical information: (202) 691-5618 • productivity@bls.gov • www.bls.gov/lpc
Media contact: (202) 691-5902 • PressOffice@bls.gov
PRODUCTIVITY AND COSTS BY INDUSTRY:
SELECTED SERVICE-PROVIDING INDUSTRIES, 2015
Labor productivity rose in 15 of 28 selected service-providing industries in 2015, the U.S. Bureau of
Labor Statistics reported today. This was fewer than in 2014, when labor productivity increased in 20 of 28
industries. In 2015 output increased in fewer industries than in 2014, while hours worked increased in
more industries than in 2014.
Unit labor costs declined in 10 industries in 2015. Each of the industries with declines in unit labor costs
also recorded increases in productivity. Increases in labor productivity counter the impact of rising hourly
compensation on unit labor costs facing employers.
Productivity and cost measures are published in this release for the first time for amusement parks and
arcades, and for specialized freight trucking.
Trends in Labor Productivity in 2015
* Labor productivity increased in 15 of 28 industries in 2015. Among those
with increasing productivity, output grew in all but two. Hours worked declined in 9 of the
28 industries.
* Productivity gains of at least 8.0 percent occurred in two industries where output increases
coincided with declines in hours worked: wireless telecommunications carriers (26.5
percent) and amusement parks and arcades (8.0 percent).
* Four industries recorded output gains of at least 3.0 percent but had productivity declines
because of larger increases in hours worked: truck, trailer, and RV rental and leasing (-5.6
percent), warehousing and storage (-4.4 percent), software publishers (-4.2 percent), and air
transportation (-0.3 percent).
Trends in Unit Labor Costs in 2015
* Unit labor costs fell in 10 industries in 2015.
* All unit labor cost declines occurred in industries where productivity rose.
* Conversely, each of the industries where productivity fell also recorded an increase in
unit labor costs.
* Hourly labor compensation rose in 19 of the 28 industries measured.
Long Term Productivity Trends
* Productivity rose in 44 service-providing industries for the period 1987 to 2014. Median
productivity growth for all 57 industries was approximately 1.7 percent per year.
* Output increased during this period in 43 industries, while hours worked increased in 34
industries.
* Productivity also increased in 37 of the 57 industries measured between 2007 and 2014, even
though the period saw a severe recession. However, only 28 industries had increases in output
and 17 experienced growth in hours worked.
* Other specialized trucking, long-distance, and other specialized trucking, local, are published
for the first time in this release for 2002-2014. The first industry reported an increase in
productivity in 2014, while the latter had a productivity decline.
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Technical Note
Labor Productivity: Labor productivity describes the relationship between real output and the
labor hours involved in its production. These measures show the changes from period to period in
the amount of goods and services produced per hour worked. Although the labor productivity
measures relate output in an industry to hours worked of all persons in that industry, they do not
measure the specific contribution of labor to growth in output. Rather, they reflect the joint effects
of many influences, including: changes in technology; capital investment; utilization of capacity,
energy, and materials; the use of purchased services inputs, including contract employment
services; the organization of production; the characteristics and effort of the workforce; and
managerial skill.
Unit Labor Costs: Unit labor costs represent the cost of labor required to produce one unit of
output. The unit labor cost indexes are computed by dividing an index of nominal industry labor
compensation by an index of real industry output. Unit labor costs also describe the relationship
between compensation per hour and real output per hour (labor productivity). Increases in hourly
compensation increase unit labor costs; increases in labor productivity offset compensation
increases and reduce unit labor costs.
Output: Industry output is measured as an annual-weighted index of the changes in the various
products (in real terms) provided for sale outside the industry. Real industry output is usually
derived by deflating nominal sales or values of production using BLS price indexes, but for some
industries it is measured by physical quantities of output.
Industry output measures are constructed primarily using data from the economic censuses and
annual surveys of the U.S. Census Bureau, U.S. Department of Commerce, together with
information on price changes from BLS. Other data sources include: the Energy Information
Administration, U.S. Department of Energy; the Bureau of Transportation Statistics, U.S.
Department of Transportation; the U.S. Geological Survey, U.S. Department of the Interior; the
U.S. Postal Service; the Postal Rate Commission; and the Federal Deposit Insurance Corporation.
Industrial production data from the Quarterly Service Survey from the Census Bureau are used to
construct preliminary output measures for 2015 for some industries.
Labor Hours: Labor hours are measured as annual hours worked by all employed persons in an
industry. Data on industry employment and hours come primarily from the BLS Current
Employment Statistics (CES) survey and Current Population Survey (CPS). CES data on the
number of total and production worker jobs held by wage and salary workers in nonfarm
establishments are supplemented with CPS self-employed and unpaid family worker data to
estimate industry employment. Hours worked estimates are derived using CES and CPS
employment, CES data on the average weekly hours paid of production workers, CPS data on
hours of nonproduction, self-employed, and unpaid family workers, and ratios of hours worked to
hours paid based on data from the National Compensation Survey (NCS). For some industries,
employment and hours data are supplemented or further disaggregated using data from the BLS
Quarterly Census of Employment and Wages (QCEW), the Census Bureau, or other sources.
Additional sources of employment and hours data for certain service industries include the
Association of American Railroads, the U.S. Department of Transportation, and the U.S. Postal
Service. Hours worked are estimated separately for different types of workers and then are directly
aggregated; no adjustments for labor composition are made.
Labor Compensation: Labor compensation, defined as payroll plus supplemental payments, is a
measure of the cost to the employer of securing the services of labor. Payroll includes salaries,
wages, commissions, dismissal pay, bonuses, vacation and sick leave pay, and compensation in
kind. Supplemental payments include both legally required expenditures and payments for
voluntary programs. The legally required portion consists primarily of federal old age and
survivors’ insurance, unemployment compensation, and workers’ compensation. Payments for
voluntary programs include all programs not specifically required by legislation, such as the
employer portion of private health insurance and pension plans. Industry compensation measures
are constructed primarily using data from the economic censuses and annual surveys of the Census
Bureau, U.S. Department of Commerce. The estimates for 2015 are constructed using data from
the BLS Quarterly Census of Employment and Wages (QCEW).
Table 1. Recent labor productivity, unit labor costs, and related data
| Industry |
2012 NAICS code |
2015 Employment (thousands) |
Percent change, 2014-2015 |
| Labor productivity |
Unit labor costs |
Output |
Hours worked |
Labor compensation |
Utilities |
|
Utilities |
22 |
558.7 |
-2.5 |
4.5 |
-0.8 |
1.8 |
3.6 |
Utilities |
221 |
558.7 |
-2.5 |
4.5 |
-0.8 |
1.8 |
3.6 |
Power generation and supply |
2211 |
394.6 |
-1.7 |
4.2 |
-0.7 |
1.0 |
3.4 |
Natural gas distribution |
2212 |
114.1 |
-4.4 |
5.4 |
-0.9 |
3.6 |
4.4 |
Water, sewage and other systems |
2213 |
50.0 |
-7.6 |
6.5 |
-3.7 |
4.2 |
2.5 |
Transportation and Warehousing |
|
Air transportation |
481 |
434.6 |
-0.3 |
6.4 |
4.5 |
4.8 |
11.2 |
Line-haul railroads |
482111 |
189.8 |
2.2 |
-0.7 |
0.0 |
-2.1 |
-0.7 |
Truck transportation |
484 |
1672.0 |
-1.0 |
4.7 |
0.7 |
1.7 |
5.5 |
General freight trucking |
4841 |
1194.2 |
0.2 |
3.6 |
2.4 |
2.2 |
6.1 |
General freight trucking, local |
48411 |
313.1 |
-4.0 |
7.3 |
-1.4 |
2.7 |
5.8 |
General freight trucking, long-distance |
48412 |
881.1 |
1.1 |
2.9 |
3.2 |
2.0 |
6.2 |
Specialized freight trucking |
4842 |
477.8 |
-3.0 |
6.8 |
-2.5 |
0.5 |
4.1 |
Postal service |
491 |
596.8 |
0.1 |
0.4 |
1.3 |
1.2 |
1.7 |
Postal service |
4911 |
596.8 |
0.1 |
0.4 |
1.3 |
1.2 |
1.7 |
Couriers and messengers |
492 |
636.9 |
-6.1 |
5.9 |
-1.0 |
5.5 |
4.8 |
Warehousing and storage |
493 |
821.2 |
-4.4 |
6.8 |
3.0 |
7.8 |
10.0 |
Warehousing and storage |
4931 |
821.2 |
-4.4 |
6.8 |
3.0 |
7.8 |
10.0 |
|
Information |
|
|
Publishing |
511 |
769.8 |
-3.5 |
3.5 |
0.2 |
3.9 |
3.7 |
Newspaper publishers |
51111 |
201.9 |
1.1 |
-0.2 |
-4.6 |
-5.6 |
-4.8 |
Periodical publishers |
51112 |
114.1 |
-10.7 |
3.4 |
-5.2 |
6.1 |
-2.0 |
Software publishers |
5112 |
334.3 |
-4.2 |
4.1 |
3.3 |
7.8 |
7.5 |
Broadcasting, except Internet |
515 |
292.2 |
3.9 |
-4.5 |
3.7 |
-0.3 |
-1.0 |
Radio and television broadcasting |
5151 |
227.5 |
5.2 |
-5.3 |
5.0 |
-0.2 |
-0.6 |
Cable and other subscription programming |
5152 |
64.7 |
4.6 |
-6.2 |
4.3 |
-0.3 |
-2.2 |
Wired telecommunications carriers |
5171 |
595.7 |
3.4 |
-2.2 |
0.4 |
-2.9 |
-1.8 |
Wireless telecommunications carriers |
5172 |
131.5 |
26.5 |
-22.7 |
11.3 |
-12.0 |
-13.9 |
Finance and Insurance |
|
Commercial banking |
52211 |
1272.3 |
4.7 |
-0.3 |
2.2 |
-2.4 |
1.9 |
Real Estate and Rental and Leasing |
|
Truck, trailer, and RV rental and leasing |
53212 |
72.1 |
-5.6 |
5.8 |
6.1 |
12.5 |
12.3 |
Professional and Technical Services |
|
Accounting and bookkeeping services |
5412 |
1140.0 |
1.7 |
1.8 |
5.2 |
3.5 |
7.2 |
Accounting and bookkeeping services |
54121 |
1140.0 |
1.7 |
1.8 |
5.2 |
3.5 |
7.2 |
Engineering services |
54133 |
969.9 |
-7.3 |
10.1 |
-5.9 |
1.5 |
3.6 |
Administrative and Waste Services |
|
Travel arrangement and reservation services |
5615 |
222.1 |
-3.7 |
9.3 |
0.3 |
4.2 |
9.6 |
Health Care and Social Assistance |
|
Medical and diagnostic laboratories |
6215 |
268.4 |
2.2 |
-0.5 |
6.8 |
4.5 |
6.2 |
Arts, Entertainment, and Recreation |
|
Amusement parks and arcades |
7131 |
203.0 |
8.0 |
3.0 |
3.9 |
-3.8 |
6.9 |
Gambling industries |
7132 |
137.6 |
4.6 |
-5.2 |
7.4 |
2.7 |
1.9 |
|
Other Services |
|
|
Automotive repair and maintenance |
8111 |
1130.5 |
5.3 |
0.0 |
6.2 |
0.8 |
6.2 |
Drycleaning and laundry services |
8123 |
310.3 |
3.8 |
-2.1 |
3.3 |
-0.4 |
1.2 |
Table 2. Long run labor productivity, unit labor costs, and related data
| Industry |
2012 NAICS code |
2014 Employment (thousands) |
Average annual percent change, 1987-2014 |
| Labor productivity |
Unit labor costs |
Output |
Hours worked |
Labor compensation |
Utilities |
|
Utilities |
22 |
551.5 |
2.4 |
1.4 |
1.5 |
-0.8 |
2.9 |
Utilities |
221 |
551.5 |
2.4 |
1.4 |
1.5 |
-0.8 |
2.9 |
Power generation and supply |
2211 |
391.4 |
3.3 |
0.5 |
2.2 |
-1.0 |
2.7 |
Natural gas distribution |
2212 |
111.9 |
0.8 |
3.7 |
-0.3 |
-1.1 |
3.4 |
Water, sewage and other systems |
2213 |
48.2 |
-1.7 |
4.8 |
0.8 |
2.6 |
5.7 |
Transportation and Warehousing |
|
Air transportation |
481 |
422.8 |
3.2 |
0.4 |
2.6 |
-0.6 |
3.0 |
Line-haul railroads |
482111 |
187.4 |
3.7 |
-0.4 |
2.1 |
-1.5 |
1.7 |
Truck transportation(1) |
484 |
1632.3 |
0.6 |
0.8 |
2.0 |
1.5 |
2.9 |
General freight trucking(1) |
4841 |
1163.2 |
1.1 |
0.9 |
2.4 |
1.2 |
3.3 |
General freight trucking, local(1) |
48411 |
303.2 |
2.6 |
0.1 |
3.7 |
1.1 |
3.8 |
General freight trucking, long-distance |
48412 |
860 |
1.2 |
0.3 |
2.3 |
1.0 |
2.6 |
Specialized freight trucking(2) |
4842 |
469.1 |
0.7 |
1.8 |
2.2 |
1.5 |
4.1 |
Used household and office goods moving |
48421 |
97 |
-1.0 |
2.6 |
-0.3 |
0.6 |
2.2 |
Other specialized trucking, local(2) |
48422 |
236.8 |
-0.1 |
2.6 |
2.1 |
2.2 |
4.7 |
Other specialized trucking, long-distance(2) |
48423 |
135 |
1.8 |
0.8 |
4.0 |
2.1 |
4.9 |
Postal service |
491 |
593 |
0.6 |
3.2 |
-0.6 |
-1.3 |
2.5 |
Postal service |
4911 |
593 |
0.6 |
3.2 |
-0.6 |
-1.3 |
2.5 |
Couriers and messengers |
492 |
606.3 |
-1.9 |
3.5 |
0.3 |
2.2 |
3.8 |
Warehousing and storage(1) |
493 |
752.7 |
2.6 |
-0.5 |
5.9 |
3.2 |
5.4 |
Warehousing and storage(1) |
4931 |
752.7 |
2.6 |
-0.5 |
5.9 |
3.2 |
5.4 |
General warehousing and storage(1) |
49311 |
646.8 |
3.9 |
-1.4 |
7.4 |
3.3 |
5.9 |
Refrigerated warehousing and storage(1) |
49312 |
52 |
0.0 |
1.4 |
2.8 |
2.8 |
4.3 |
Information |
|
Publishing |
511 |
753.5 |
4.0 |
1.3 |
3.5 |
-0.5 |
4.8 |
Newspaper, book, and directory publishers |
5111 |
438 |
-0.2 |
4.3 |
-2.5 |
-2.3 |
1.7 |
Newspaper publishers |
51111 |
211.3 |
-1.2 |
4.4 |
-4.2 |
-3.0 |
0.0 |
Periodical publishers |
51112 |
111.3 |
-0.4 |
4.9 |
-1.5 |
-1.1 |
3.4 |
Book publishers |
51113 |
69.1 |
0.0 |
4.8 |
-0.8 |
-0.8 |
3.9 |
Software publishers |
5112 |
315.5 |
12.3 |
-6.4 |
18.8 |
5.8 |
11.1 |
Motion picture and video exhibition |
51213 |
132 |
1.7 |
1.9 |
1.6 |
-0.2 |
3.5 |
Broadcasting, except Internet |
515 |
287.8 |
2.8 |
1.8 |
2.9 |
0.1 |
4.7 |
Radio and television broadcasting |
5151 |
224 |
1.8 |
2.1 |
1.5 |
-0.3 |
3.7 |
Radio broadcasting |
51511 |
92.1 |
3.4 |
1.8 |
2.4 |
-0.9 |
4.2 |
Cable and other subscription programming |
5152 |
63.8 |
4.9 |
2.6 |
7.0 |
2.0 |
9.7 |
Wired telecommunications carriers |
5171 |
608 |
3.6 |
-1.1 |
2.8 |
-0.8 |
1.6 |
Wireless telecommunications carriers |
5172 |
149.6 |
11.2 |
-6.3 |
19.4 |
7.4 |
11.9 |
Finance and Insurance |
|
Commercial banking |
52211 |
1292.8 |
3.3 |
2.0 |
3.2 |
-0.1 |
5.2 |
Real Estate and Rental and Leasing |
|
Passenger car rental |
532111 |
114.7 |
1.7 |
2.3 |
2.4 |
0.7 |
4.8 |
Truck, trailer, and RV rental and leasing |
53212 |
65.6 |
2.5 |
0.9 |
2.4 |
-0.1 |
3.3 |
Video tape and disc rental |
53223 |
17.5 |
6.4 |
-2.0 |
-0.8 |
-6.7 |
-2.8 |
Professional and Technical Services |
|
Accounting and bookkeeping services(3) |
5412 |
1098.9 |
2.6 |
1.0 |
3.2 |
0.6 |
4.2 |
Accounting and bookkeeping services(3) |
54121 |
1098.9 |
2.6 |
1.0 |
3.2 |
0.6 |
4.2 |
Offices of certified public accountants(3) |
541211 |
449.5 |
1.8 |
2.4 |
2.8 |
0.9 |
5.2 |
Tax preparation services |
541213 |
131.4 |
0.8 |
1.7 |
2.4 |
1.6 |
4.1 |
Other accounting services(3) |
541219 |
338.7 |
4.7 |
-2.3 |
4.8 |
0.1 |
2.4 |
Architectural services |
54131 |
182.6 |
1.5 |
1.9 |
2.3 |
0.8 |
4.2 |
Engineering services |
54133 |
947.6 |
1.1 |
3.0 |
2.8 |
1.7 |
5.9 |
Advertising agencies |
54181 |
206.7 |
1.7 |
2.5 |
2.1 |
0.5 |
4.6 |
Photography studios, portrait |
541921 |
60 |
0.6 |
2.1 |
1.0 |
0.4 |
3.1 |
Administrative and Waste Services |
|
Employment placement and executive search(4) |
56131 |
303 |
3.9 |
0.3 |
5.1 |
1.2 |
5.5 |
Travel arrangement and reservation services(3) |
5615 |
214.8 |
6.7 |
-1.6 |
3.6 |
-2.9 |
1.9 |
Travel agencies |
56151 |
97.4 |
5.7 |
-1.0 |
4.2 |
-1.4 |
3.2 |
Janitorial services |
56172 |
1323.3 |
2.0 |
1.4 |
3.6 |
1.6 |
5.0 |
Health Care and Social Assistance |
|
Medical and diagnostic laboratories(4) |
6215 |
261.8 |
2.2 |
0.3 |
5.3 |
3.0 |
5.6 |
Medical laboratories(4) |
621511 |
185.2 |
2.1 |
0.2 |
5.3 |
3.1 |
5.5 |
Diagnostic imaging centers(4) |
621512 |
76.6 |
2.4 |
0.7 |
5.4 |
2.9 |
6.1 |
Hospitals, except psychiatric and substance abuse hospitals(5) |
6221,3 |
4670.9 |
0.5 |
3.5 |
2.1 |
1.6 |
5.6 |
|
Arts, Entertainment, and Recreation |
|
|
Amusement parks and arcades(6) |
7131 |
189.7 |
-4.3 |
6.7 |
-1.7 |
2.7 |
4.9 |
Amusement and theme parks |
71311 |
169.1 |
-1.2 |
4.3 |
1.8 |
3.0 |
6.2 |
Gambling industries(3) |
7132 |
138.6 |
1.9 |
2.7 |
1.9 |
0.0 |
4.6 |
Golf courses and country clubs(2) |
71391 |
381.3 |
-1.2 |
4.1 |
0.0 |
1.3 |
4.1 |
Fitness and recreational sports centers(2) |
71394 |
580.9 |
3.9 |
-0.8 |
3.9 |
0.0 |
3.1 |
Bowling centers |
71395 |
69.4 |
0.1 |
2.8 |
-1.4 |
-1.5 |
1.4 |
Accommodation and Food Services |
|
Accommodation and food services |
72 |
12851.4 |
0.7 |
2.7 |
2.2 |
1.5 |
5.0 |
Accommodation |
721 |
1937.2 |
2.1 |
1.7 |
2.7 |
0.7 |
4.5 |
Traveler accommodation |
7211 |
1853.9 |
2.1 |
1.7 |
2.8 |
0.7 |
4.5 |
Hotels and motels, except casino hotels |
72111 |
1540.1 |
1.5 |
2.5 |
2.1 |
0.6 |
4.6 |
Food services and drinking places |
722 |
10914.2 |
0.4 |
3.1 |
2.0 |
1.6 |
5.1 |
Special food services |
7223 |
766.4 |
1.0 |
1.3 |
2.3 |
1.3 |
3.6 |
Drinking places, alcoholic beverages |
7224 |
376 |
-0.5 |
3.3 |
-0.8 |
-0.3 |
2.6 |
Restaurants and other eating places |
72251 |
9771.8 |
0.4 |
3.3 |
2.2 |
1.8 |
5.5 |
Full-service restaurants |
722511 |
5083.7 |
0.5 |
3.7 |
2.2 |
1.7 |
5.9 |
Limited-service eating places |
722513,4,5 |
4688.1 |
0.3 |
2.8 |
2.1 |
1.8 |
5.0 |
|
Other Services |
|
|
Automotive repair and maintenance |
8111 |
1113.1 |
0.9 |
2.3 |
1.3 |
0.4 |
3.7 |
Reupholstery and furniture repair |
81142 |
21.1 |
-0.5 |
3.6 |
-2.7 |
-2.2 |
0.7 |
Personal care services |
8121 |
1189.1 |
2.4 |
1.6 |
3.5 |
1.1 |
5.1 |
Hair, nail, and skin care services |
81211 |
963 |
2.4 |
1.6 |
3.1 |
0.7 |
4.8 |
Funeral homes and funeral services |
81221 |
113.7 |
-0.9 |
4.6 |
-0.4 |
0.5 |
4.1 |
Drycleaning and laundry services |
8123 |
317.5 |
1.9 |
1.7 |
0.9 |
-1.0 |
2.6 |
Coin-operated laundries and drycleaners |
81231 |
42.8 |
2.9 |
1.8 |
0.6 |
-2.3 |
2.4 |
Drycleaning and laundry services |
81232 |
149.2 |
0.9 |
2.1 |
-1.0 |
-1.9 |
1.0 |
Linen and uniform supply |
81233 |
125.5 |
1.8 |
1.4 |
2.7 |
0.8 |
4.1 |
Photofinishing |
81292 |
11.8 |
2.5 |
1.8 |
-4.4 |
-6.7 |
-2.7 |
Footnotes: |
|
(1) For NAICS industries 484, 4841, 48411, 493, 4931, 49311, 49312, average annual percent changes are for 1992-2014. |
|
(2) For NAICS industries 4842, 48422, 48423, 71391 and 71394, average annual percent changes are for 2002-2014. |
|
(3) For NAICS industries 5412, 54121, 541211, 541219, 5615, and 7132, average annual percent changes are for 1997-2014. |
|
(4) For NAICS industries 56131, 6215, 621511, and 621512, average annual percent changes are for 1994-2014. |
|
(5) For NAICS industry 6221,3, average annual percent changes are for 1993-2012. Employment is for 2012. |
|
(6) For NAICS industry 7131, average annual percent changes are for 2007-2014. |
|
United States Department of Labor
