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Economic News Release
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Productivity and Costs by Industry: Selected Service-Providing Industries News Release

For release 10:00 a.m. (EDT) Thursday, May 18, 2017                                                    USDL-17-0619

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 -- 2016


Labor productivity rose in 17 of 28 selected service-providing industries in 2016, the U.S. Bureau of Labor 
Statistics reported today. This was greater than in 2015, when labor productivity increased in 14 of 28 industries. 
In 2016, output and hours increased in fewer industries than in 2015.  

Unit labor costs declined in 5 industries in 2016. 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.

Long term measures of productivity and cost through 2015 are available for 58 industries; included for the first 
time are veterinary services.

Trends in Labor Productivity in 2016

*	Labor productivity increased in 17 of 28 industries in 2016. Among those with increasing productivity, output 
    grew in 13 industries. 
*	Hours worked grew in 15 of the 28 industries.
*	Productivity gains of at least 8.0 percent occurred in 3 industries where output increases coincided with declines 
    in hours worked: cable and other subscription programming (19.1 percent), wireless telecommunications carriers 
	(12.7 percent), and accounting and bookkeeping services (8.8 percent).
*	Three industries recorded productivity declines despite output gains of at least 3.0 percent because of larger 
	increases in hours worked: warehousing and storage (-8.8 percent); couriers and messengers (-1.5 percent); 
	and truck, trailer, and RV rental and leasing (-1.4 percent).

Trends in Unit Labor Costs in 2016

*	Unit labor costs fell in 5 industries in 2016. 
*	All unit labor cost declines occurred in industries where productivity rose. 
*	Each of the industries where productivity fell also recorded an increase in unit labor costs. 
*	Hourly labor compensation rose in all but 1 of the 28 industries measured. 

Long Term Productivity Trends 

*	Over the long term, productivity rose in 45 service-providing industries. For the majority of the industries 
    studied, this period extends from 1987 to 2015. 
*	Median long term productivity growth for all 58 industries was approximately 1.6 percent per year.
*	Output increased over the long term in 44 industries while hours worked increased in 38 industries. 
*	Productivity increased in 36 of the 58 industries in the more recent 2007 to 2015 period that began with a 
	severe recession. Only 35 industries had increases in output and 23 experienced growth in hours worked.
*	Veterinary services is published for the first time in this release. Productivity in this industry increased 
    by 0.9 percent from 2014 to 2015.

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*      - Additional years and long-term data                                                               *
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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 2016 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 2016 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 2016
Employment
(thousands)
Percent change, 2015-2016
Labor productivity Unit labor costs Output Hours worked Labor compensation

Utilities

Utilities

22

556.2 -0.8 3.7 -0.8 0.0 2.9

Utilities

221

556.2 -0.8 3.7 -0.8 0.0 2.9

Power generation and supply

2211

393.6 -1.0 4.0 -0.7 0.3 3.3

Natural gas distribution

2212

112.5 1.0 1.7 -0.8 -1.8 0.8

Water, sewage and other systems

2213

50.1 -5.2 9.3 -3.3 2.1 5.7

Transportation and Warehousing

Air transportation

481

448.1 0.4 5.7 3.4 2.9 9.3

Line-haul railroads

482111

173.1 9.6 -7.0 -0.1 -8.9 -7.1

Truck transportation

484

1,671.2 0.5 1.8 0.0 -0.5 1.8

General freight trucking

4841

1,201.5 -2.3 5.1 -1.9 0.5 3.1

General freight trucking, local

48411

317.4 -2.8 9.3 -3.7 -0.9 5.3

General freight trucking, long-distance

48412

884.1 -2.6 4.2 -1.7 0.9 2.5

Specialized freight trucking

4842

469.7 6.5 -4.5 3.4 -2.9 -1.3

Postal service

491

608.9 1.3 3.1 1.2 -0.2 4.4

Postal service

4911

608.9 1.3 3.1 1.2 -0.2 4.4

Couriers and messengers

492

675.4 -1.5 3.4 3.6 5.2 7.1

Warehousing and storage

493

922.1 -8.8 5.6 5.1 15.2 11.0

Warehousing and storage

4931

922.1 -8.8 5.6 5.1 15.2 11.0

Information

Publishing

511

760.0 2.3 7.3 -0.4 -2.6 6.9

Newspaper publishers

51111

183.0 4.3 2.5 -5.8 -9.7 -3.5

Periodical publishers

51112

108.4 2.7 1.6 -4.2 -6.7 -2.7

Software publishers

5112

356.1 -2.1 10.4 1.8 4.0 12.4

Broadcasting, except Internet

515

277.2 7.7 -2.7 4.3 -3.2 1.4

Radio and television broadcasting

5151

223.0 2.3 2.0 1.3 -0.9 3.4

Cable and other subscription programming

5152

54.2 19.1 -9.6 6.6 -10.5 -3.6

Wired telecommunications carriers

5171

590.6 3.0 4.6 1.4 -1.6 6.1

Wireless telecommunications carriers

5172

122.5 12.7 -10.4 8.5 -3.8 -2.9

Finance and Insurance

Commercial banking

52211

1,307.0 -3.5 3.8 -0.6 3.1 3.2

Real Estate and Rental and Leasing

Truck, trailer, and RV rental and leasing

53212

76.3 -1.4 3.8 4.2 5.7 8.2

Professional and Technical Services

Accounting and bookkeeping services

5412

1,145.4 8.8 -3.3 8.1 -0.6 4.6

Accounting and bookkeeping services

54121

1,145.4 8.8 -3.3 8.1 -0.6 4.6

Engineering services

54133

973.0 -0.2 0.4 0.2 0.4 0.6

Administrative and Waste Services

Travel arrangement and reservation services

5615

238.4 0.3 3.4 6.6 6.2 10.2

Health Care and Social Assistance

Medical and diagnostic laboratories

6215

271.2 2.1 2.1 2.2 0.1 4.3

Arts, Entertainment, and Recreation

Amusement parks and arcades

7131

208.8 3.4 3.9 2.7 -0.7 6.6

Gambling industries

7132

136.1 1.3 1.5 2.1 0.8 3.7

Other Services

Automotive repair and maintenance

8111

1,113.5 -0.8 7.1 -0.5 0.3 6.5

Drycleaning and laundry services

8123

316.6 1.3 1.3 2.4 1.0 3.7






Table 2. Long run labor productivity, unit labor costs, and related data
Industry 2012 NAICS code 2015
Employment
(thousands)
Average annual percent change, 1987-2015
Labor productivity Unit labor costs Output Hours worked Labor compensation

Utilities

Utilities

22

556.0 2.2 1.5 1.4 -0.8 2.9

Utilities

221

556.0 2.2 1.5 1.4 -0.8 2.9

Power generation and supply

2211

394.2 3.1 0.5 2.1 -1.0 2.7

Natural gas distribution

2212

112.9 0.6 3.8 -0.3 -1.0 3.5

Water, sewage and other systems

2213

48.9 -1.6 4.5 0.8 2.5 5.4

Transportation and Warehousing

Air transportation

481

434.9 3.1 0.6 2.6 -0.4 3.3

Line-haul railroads

482111

189.8 3.6 -0.3 2.0 -1.5 1.7

Truck transportation(1)

484

1,668.9 0.6 0.9 2.1 1.5 3.0

General freight trucking(1)

4841

1,193.1 1.1 1.0 2.4 1.3 3.4

General freight trucking, local(1)

48411

313.1 2.4 0.2 3.6 1.2 3.8

General freight trucking, long-distance

48412

880.0 1.2 0.4 2.3 1.1 2.7

Specialized freight trucking(2)

4842

475.8 0.7 1.8 2.2 1.4 4.0

Used household and office goods moving

48421

98.7 -0.7 2.6 -0.2 0.5 2.4

Other specialized trucking, local(2)

48422

236.9 0.1 2.4 1.9 1.8 4.4

Other specialized trucking, long-distance(2)

48423

140.1 1.3 1.2 3.9 2.5 5.1

Postal service

491

596.9 0.5 3.2 -0.7 -1.2 2.5

Postal service

4911

596.9 0.5 3.2 -0.7 -1.2 2.5

Couriers and messengers

492

641.5 -1.9 3.3 0.4 2.4 3.7

Warehousing and storage(1)

493

837.4 2.2 0.0 5.8 3.5 5.7

Warehousing and storage(1)

4931

837.4 2.2 0.0 5.8 3.5 5.7

General warehousing and storage(1)

49311

725.4 3.4 -0.9 7.2 3.6 6.2

Refrigerated warehousing and storage(1)

49312

55.9 -0.3 1.7 2.8 3.1 4.6

Information

Publishing

511

770.9 3.7 1.5 3.4 -0.3 4.9

Newspaper, book, and directory publishers

5111

435.8 -0.4 4.4 -2.6 -2.2 1.7

Newspaper publishers

51111

201.2 -1.2 4.4 -4.3 -3.1 -0.1

Periodical publishers

51112

113.5 -0.8 5.1 -1.6 -0.8 3.4

Book publishers

51113

72.7 -0.4 5.0 -0.9 -0.5 4.1

Software publishers

5112

335.1 11.6 -6.0 18.1 5.9 11.1

Motion picture and video exhibition

51213

137.9 1.9 1.8 1.8 -0.1 3.6

Broadcasting, except Internet

515

289.4 2.9 1.8 3.0 0.1 4.8

Radio and television broadcasting

5151

227.9 1.9 2.1 1.6 -0.3 3.7

Radio broadcasting

51511

92.9 3.7 1.6 2.6 -1.0 4.3

Cable and other subscription programming

5152

61.5 5.1 2.7 6.9 1.7 9.8

Wired telecommunications carriers

5171

598.0 3.7 -0.8 2.8 -0.9 1.9

Wireless telecommunications carriers

5172

129.8 11.7 -6.7 19.1 6.6 11.1

Finance and Insurance

Commercial banking

52211

1,284.7 3.4 1.8 3.2 -0.2 5.1

Real Estate and Rental and Leasing

Passenger car rental

532111

120.2 1.8 2.0 2.7 0.9 4.8

Truck, trailer, and RV rental and leasing

53212

72.2 2.2 1.1 2.5 0.4 3.6

Video tape and disc rental

53223

14.1 6.8 -2.1 -1.2 -7.4 -3.3

Professional and Technical Services

Accounting and bookkeeping services(3)

5412

1,126.6 2.6 1.2 3.4 0.7 4.5

Accounting and bookkeeping services(3)

54121

1,126.6 2.6 1.2 3.4 0.7 4.5

Offices of certified public accountants(3)

541211

468.3 1.9 2.4 2.9 1.1 5.4

Tax preparation services

541213

139.9 0.5 1.8 2.4 1.9 4.2

Other accounting services(3)

541219

346.6 4.7 -2.1 4.9 0.2 2.7

Architectural services

54131

191.4 1.5 1.9 2.4 0.9 4.4

Engineering services

54133

963.7 1.2 3.0 2.8 1.6 5.9

Advertising agencies

54181

218.1 1.6 2.5 2.2 0.6 4.7

Photography studios, portrait

541921

59.5 0.2 1.8 1.2 1.0 3.0

Veterinary services(4)

54194

358.2 -1.1 4.1 1.3 2.5 5.5

Administrative and Waste Services

Employment placement and executive search(5)

56131

301.6 4.1 0.3 5.1 1.0 5.5

Travel arrangement and reservation services(3)

5615

226.0 6.2 -1.2 3.6 -2.4 2.3

Travel agencies

56151

100.0 5.5 -0.6 4.2 -1.2 3.5

Janitorial services

56172

1,354.2 1.9 1.5 3.5 1.6 5.0

Health Care and Social Assistance

Medical and diagnostic laboratories(5)

6215

270.3 2.0 0.5 5.1 3.1 5.7

Medical laboratories(5)

621511

194.4 1.8 0.5 5.1 3.2 5.6

Diagnostic imaging centers(5)

621512

75.9 2.2 0.7 5.2 2.9 6.0

Hospitals, except psychiatric and substance abuse hospitals(6)

6221,3

4,675.9 0.5 3.3 1.9 1.4 5.3

Arts, Entertainment, and Recreation

Amusement parks and arcades(7)

7131

203.4 -2.7 6.2 -0.9 1.9 5.2

Amusement and theme parks

71311

179.6 -0.8 4.2 1.9 2.8 6.2

Gambling industries(3)

7132

136.2 2.0 2.4 2.0 0.1 4.4

Golf courses and country clubs(2)

71391

382.4 -1.2 4.2 -0.1 1.1 4.1

Fitness and recreational sports centers(2)

71394

601.9 3.7 -0.8 4.0 0.3 3.2

Bowling centers

71395

68.6 0.5 2.7 -1.1 -1.6 1.5

Accommodation and Food Services

Accommodation and food services

72

13,279.1 0.8 2.7 2.3 1.5 5.1

Accommodation

721

1,953.9 2.1 1.7 2.8 0.7 4.5

Traveler accommodation

7211

1,868.4 2.1 1.7 2.8 0.7 4.5

Hotels and motels, except casino hotels

72111

1,565.1 1.5 2.4 2.2 0.7 4.7

Food services and drinking places

722

11,325.2 0.4 3.1 2.1 1.7 5.3

Special food services

7223

807.0 1.0 1.6 2.4 1.4 4.0

Drinking places, alcoholic beverages

7224

383.3 -0.5 3.5 -0.6 -0.1 2.8

Restaurants and other eating places

72251

10,134.9 0.5 3.3 2.3 1.8 5.6

Full-service restaurants

722511

5,254.0 0.6 3.6 2.3 1.7 6.0

Limited-service eating places

722513,4,5

4,880.9 0.4 2.8 2.3 1.9 5.1

Other Services

Automotive repair and maintenance

8111

1,131.6 1.0 2.3 1.4 0.4 3.7

Reupholstery and furniture repair

81142

20.5 -0.5 3.4 -2.7 -2.2 0.6

Personal care services

8121

1,198.0 2.4 1.6 3.4 1.0 5.1

Hair, nail, and skin care services

81211

974.7 2.3 1.7 3.0 0.7 4.8

Funeral homes and funeral services

81221

110.5 -0.4 4.1 -0.3 0.1 3.9

Drycleaning and laundry services

8123

310.3 2.0 1.5 1.0 -0.9 2.5

Coin-operated laundries and drycleaners

81231

40.2 2.5 1.7 0.5 -2.0 2.2

Drycleaning and laundry services

81232

143.1 0.8 2.1 -1.1 -1.9 1.0

Linen and uniform supply

81233

127.0 2.1 1.1 2.9 0.8 4.0

Photofinishing

81292

11.6 2.6 2.0 -4.3 -6.7 -2.4

Footnotes
(1) For NAICS industries 484, 4841, 48411, 493, 4931, 49311, and 49312, average annual percent changes are for 1992-2015.
(2) For NAICS industries 4842, 484220, 484230, 71391, and 71394, average annual percent changes are for 2002-2015.
(3) For NAICS industries 5412, 54121, 541211, 541219, 5615, and 7132, average annual percent changes are for 1997-2015.
(4) For NAICS industry 54194, average annual percent changes are for 2004-2015.
(5) For NAICS industries 56131, 6215, 621511, and 621512, average annual percent changes are for 1994-2015.
(6) For NAICS industry 6221,3, average annual percent changes are for 1993-2014. Employment is for 2014.
(7) For NAICS industry 7131, average annual percent changes are for 2007-2015.


Last Modified Date: May 18, 2017