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

Historical, technical                                   USDL 09-0546
  information:   (202) 691-5618                         FOR RELEASE: 10:00 a.m. EDT
Media contact:   (202) 691-5902                         Wednesday, May 20, 2009
Internet: http://www.bls.gov/lpc/



                           PRODUCTIVITY AND COSTS BY INDUSTRY:
                  SELECTED SERVICE-PROVIDING AND MINING INDUSTRIES, 2007

      Labor productivity, defined as output per hour, rose in 66 percent of the detailed 
service-providing and mining industries in 2007, about the same as in 2006. Unit labor 
costs, which reflect hourly compensation and productivity, rose in 70 percent of the 
industries, compared to 76 percent in 2006.
  
      Over the longer period, 1987 to 2007, labor productivity increased in 86 percent 
of the industries studied. Unit labor costs rose in 78 percent of the industries.
  
      Productivity and cost measures for three industries are presented for the first time: 
support activities for mining (NAICS 213), accommodation (NAICS 721), and 
reupholstery and furniture repair (NAICS 81142). The addition of labor productivity 
measures for accommodation (NAICS 721), along with the previously published BLS 
measures for food services and drinking places (NAICS 722), completes coverage of the 
accommodation and food services sector (NAICS 72). Measures for NAICS 72 are also 
published here for the first time.
  
   	BLS updates the industry labor productivity measures as data become available.  
Productivity measures for industries in manufacturing, retail trade, and wholesale trade 
are published in separate releases that can be accessed online at 
http://www.bls.gov/schedule/archives/prin_nr.htm.

2006-2007 change

      In 2007, output per hour increased in 31 of the 45 detailed service-providing 
industries and in two of the five detailed mining industries studied. (See table 1.)  Output 
rose in 66 percent of the industries in 2007, while labor hours declined in 48 percent. 
      
      Among the largest industries included, those with employment over one million, 
productivity rose 0.9 percent in commercial banking (NAICS 52211) and 5.4 percent in 
janitorial services (NAICS 56172), but declined 1.8 percent in traveler accommodation 
(NAICS 7211); 1.4 percent in full-service restaurants (NAICS 7221); and 0.9 percent in 
automotive repair and maintenance (NAICS 8111). The limited-service eating places 
industry (NAICS 7222) had no change in productivity.

      Three service-providing industries recorded productivity growth greater than 
fifteen percent in 2007: video tape and disc rental (NAICS 53223), 26.5 percent; bowling 
centers (NAICS 71395), 19.7 percent; and passenger car rental (NAICS 532111), 16.8 
percent. Each of these industries posted large reductions in hours. Productivity fell most, 
11.4 percent, in diagnostic imaging centers (NAICS 621512), due mostly to a rapid rise in 
hours. 
      
      Labor productivity fell 6.4 percent in the overall mining sector (NAICS 21), led 
by a large productivity decline of 15.4 percent in metal ore mining (NAICS 2122), where 
hours rose rapidly.  
      
      Unit labor costs rose in two-thirds of the service-providing industries and in all of 
the mining industries in 2007.  Declines in unit labor costs were greatest in the two 
industries with the largest productivity increases: video tape and disc rental (NAICS 
53223) and bowling centers (NAICS 71395), where unit labor costs fell by 9.2 and 6.9 
percent, respectively.

Long-term trends

      Between 1987 and 2007, labor productivity increased in 38 of the 45 detailed 
service-providing industries and in all of the covered mining industries. Software 
publishers (NAICS 5112) recorded the greatest productivity growth over the period, 15.6 
percent per year on average, followed by wireless telecommunications carriers (NAICS 
5172), with average yearly growth of 9.4 percent.

	Unit labor costs increased in 78 percent of the detailed service-providing 
industries and in all but one mining industry from 1987 to 2007.  Unit labor costs grew 
most rapidly in oil and gas extraction (NAICS 2111), 5.9 percent per year on average. The 
most rapid declines in unit labor costs occurred in the two industries with the fastest 
productivity growth, with software publishers (NAICS 5112) declining 8.9 percent and 
wireless telecommunications carriers (NAICS 5172) falling 6.0 percent.


					Technical Note  

Labor Productivity

       The industry labor productivity measures describe the relationship between 
industry output and the labor time involved in its production.  They show the changes from period 
to period in the amount of goods and services produced per hour.  Although the labor productivity 
measures relate output to hours of employees or all persons in an industry, they do not measure the 
specific contribution of labor or any other factor of production.  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; managerial skill; and the characteristics and 
effort of the workforce.
       Long-term productivity trends tend to be more reliable indicators of the performance of an 
industry than are year-to-year changes.  The annual changes in an industry’s output and use of 
labor may reflect cyclical changes in the economy as well as long-term trends.  

Output

       Industry output is measured as an annual-weighted index of the changes in the various 
products or services (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 primarily from BLS. Output measures for some mining and utilities 
industries are based on physical quantity data from the Energy Information Administration, U.S. 
Department of Energy, while output measures for some transportation industries are based on 
physical quantity data from the Bureau of Transportation Statistics, U.S. Department of 
Transportation. Other data sources for some industries include 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.

Labor Hours

       The primary source of industry employment and hours data is the BLS Current 
Employment Statistics (CES) survey. The CES provides monthly data on the number of total and 
nonsupervisory worker jobs held by wage and salary workers in nonfarm establishments, as well as 
data on the average weekly hours of nonsupervisory workers in those establishments. CES data are 
supplemented or further disaggregated for some industries using data from the BLS Quarterly 
Census of Employment and Wages (QCEW), the Bureau of the Census, or other sources. Data from 
the Current Population Survey (CPS) are also used to supplement the CES data. The industry 
productivity program estimates the average weekly hours of supervisory workers for each industry 
using data from the CPS together with the CES data. Data from the CPS are also used to estimate the 
employment and hours of self-employed and unpaid family workers in each industry.  Other 
sources of employment and hours data for some service industries include the Association of 
American Railroads, the U.S. Department of Transportation, and the U.S. Postal Service. Hours of 
all workers in an industry are treated as homogeneous and are directly aggregated.  

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 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 lower unit labor costs. 
       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 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.

Additional Information

       Measures for the three added industries were developed using standard 
BLS methods as described above. Output measures for all three industries are based on receipts 
data from the U.S. Census Bureau, deflated with price indexes from BLS. Revenues for support 
activities for mining are based on additional data from the Department of Energy. The labor input 
measures for all three new industries were constructed using employment and hours data from BLS 
surveys. 
       The industries included in this release are classified according to the 2002 NAICS. Industry 
productivity measures for service-providing industries will be classified according to the 2007 
NAICS in 2010, with the publication of data for 2008 and the inclusion of data from the 2007 
economic censuses. All of the measures for 2007 in this release are preliminary and subject to 
revision.
       Industry productivity and related indexes and rates of change can be accessed online by 
visiting the Labor Productivity and Costs web site at http://www.bls.gov/lpc/.  Data on industry 
employment, hours, labor compensation, value of production, and the implicit price deflator for 
output for these industries are available upon request by calling the Division of Industry 
Productivity Studies (202-691-5618) or by sending a request by e-mail to dipsweb@bls.gov. While 
the rates of change reported by BLS in this news release are rounded to one decimal place, all 
industry productivity percent changes are calculated using index numbers to three decimal places.
       Information in this report will be made available to sensory-impaired individuals upon 
request. Voice phone: 202-691-5618; TDD message referral phone number: 1-800-877-8339.



Table 1.  Percent change in output per hour, output, hours, compensation, and unit labor costs, 2006-2007

                                                                                      Percent change, 2006-2007
                                                                2007     ---------------------------------------------------
 NAICS                        Industry                       Employment   Output                        Labor     Unit labor
 code                                                       (thousands)  per hour   Output    Hours  compensation   costs

                         Mining Industries

21       Mining                                                   664      -6.4       0.0       6.9      12.1       12.1
211      Oil and gas extraction                                   146      -3.3       1.3       4.8       9.4        8.1
2111     Oil and gas extraction                                   146      -3.3       1.3       4.8       9.4        8.1
212      Mining, except oil and gas                               223      -5.3      -3.8       1.6       4.0        8.0
2121     Coal mining                                               77       1.2      -2.6      -3.7       0.7        3.3
2122     Metal ore mining                                          36     -15.4       0.6      18.8      15.9       15.3
2123     Nonmetallic mineral mining and quarrying                 110      -8.5      -7.7       0.8       2.1       10.7
213      Support activities for mining                            294       6.7      19.7      12.2      21.2        1.2
2131     Support activities for mining                            294       6.7      19.7      12.2      21.2        1.2

                    Service-Providing Industries

                             Utilities

2211     Power generation and supply                              398      -1.8       1.0       2.9       6.6        5.6
2212     Natural gas distribution                                 107       0.5       6.5       6.0       5.4       -1.1

                   Transportation and Warehousing

481      Air transportation                                       433       1.8       3.1       1.3       2.6       -0.5
482111   Line-haul railroads                                      186      -4.5      -4.4       0.1       1.4        6.0
48412    General freight trucking, long-distance                  920       1.8       0.5      -1.3       2.5        2.0
48421    Used household and office goods moving                   102       4.9      -4.1      -8.5       0.1        4.3
491      Postal service                                           762       0.7      -1.3      -1.9      14.2       15.6
4911     Postal service                                           762       0.7      -1.3      -1.9      14.2       15.6
492      Couriers and messengers                                  614      -5.6      -3.6       2.1      -1.0        2.8
493      Warehousing and storage                                  670      -3.3       1.4       4.9       8.0        6.5
4931     Warehousing and storage                                  670      -3.3       1.4       4.9       8.0        6.5
49311    General warehousing and storage                          566      -4.5       1.0       5.8       8.3        7.2
49312    Refrigerated warehousing and storage                      49       5.9       3.8      -2.0       8.8        4.7

                            Information

511      Publishing                                               936       4.0       4.0       0.0       6.1        2.0
5111     Newspaper, book, and directory publishers                679       1.7      -0.7      -2.3       3.0        3.7
5112     Software publishers                                      257       3.3       9.4       5.9      10.5        1.1
51213    Motion picture and video exhibition                      137       3.1      -2.5      -5.5       6.8        9.6
515      Broadcasting, except internet                            337       7.9       5.7      -2.1       5.1       -0.5
5151     Radio and television broadcasting                        246       3.7       2.1      -1.5       2.8        0.6
5152     Cable and other subscription programming                  91      14.5      10.8      -3.2      13.1        2.0
5171     Wired telecommunications carriers                        489      -0.1      -1.5      -1.4      -7.8       -6.4
5172     Wireless telecommunications carriers                     207       5.8      10.9       4.9       5.5       -4.8
5175     Cable and other program distribution                     142      11.9       9.5      -2.1       6.0       -3.2

                       Finance and Insurance

52211    Commercial banking                                      1351       0.9       3.9       3.0       5.9        1.9

                 Real Estate and Rental and Leasing

532111   Passenger car rental                                     130      16.8       1.1     -13.4       4.9        3.8
53212    Truck, trailer and RV rental and leasing                  58       2.9      -1.7      -4.4      -0.5        1.2
53223    Video tape and disc rental                               123      26.5       1.3     -19.9      -8.0       -9.2

                Professional and Technical Services

541213   Tax preparation services                                 150      13.7       6.6      -6.2      14.8        7.7
54131    Architectural services                                   241       4.7      11.1       6.1       9.7       -1.3
54133    Engineering services                                     961      -2.7       2.4       5.2       9.3        6.7
54181    Advertising agencies                                     199       3.7       8.5       4.6       7.9       -0.6
541921   Photography studios, portrait                             79       5.8       3.8      -1.9       2.6       -1.2

                 Administrative and Waste Services

56131    Employment placement agencies                            294       7.2       4.7      -2.4      21.4       16.0
56151    Travel agencies                                          119       3.9       1.3      -2.5       2.7        1.4
56172    Janitorial services                                     1228       5.4       8.1       2.6       8.1        0.0

                 Health Care and Social Assistance

6215     Medical and diagnostic laboratories                      223      -2.6       1.1       3.8       9.1        7.9
621511   Medical laboratories                                     148       2.1       2.4       0.3       7.4        4.9
621512   Diagnostic imaging centers                                75     -11.4      -0.7      12.0      12.4       13.2

                Arts, Entertainment, and Recreation

71311    Amusement and theme parks                                135       5.6       4.5      -1.0       5.2        0.6
71395    Bowling centers                                           78      19.7       9.2      -8.7       1.7       -6.9

                  Accommodation and Food Services

72       Accommodation and food services                        11766      -0.7       0.9       1.6       6.3        5.4
721      Accommodation                                           1907      -1.6      -0.1       1.5       5.9        6.1
7211     Traveler accommodation                                  1829      -1.8      -0.2       1.6       6.0        6.2
722      Food services and drinking places                       9859      -0.4       1.3       1.7       6.5        5.1
7221     Full-service restaurants                                4618      -1.4       0.8       2.2       7.2        6.3
7222     Limited-service eating places                           4167       0.0       1.5       1.5       6.3        4.8
7223     Special food services                                    703       2.1       3.1       1.0       5.4        2.2
7224     Drinking places (alcoholic beverages)                    372       2.5       0.8      -1.7       0.7       -0.1

                           Other Services

8111     Automotive repair and maintenance                       1170      -0.9      -0.8       0.1       4.6        5.4
81142    Reupholstery and furniture repair                         26       5.7      -6.2     -11.3      -6.4       -0.2
81211    Hair, nail and skin care services                        923       3.7       1.9      -1.7      -1.8       -3.6
81221    Funeral homes and funeral services                       105      -2.4      -6.3      -4.0       4.8       11.9
8123     Drycleaning and laundry services                         376      -4.3      -1.4       3.1       6.7        8.1
81292    Photofinishing                                            26      -1.0      -0.1       0.9      -4.9       -4.7




Table 2.  Average annual percent change in output per hour, output, hours, compensation, and unit labor costs, 1987-2007

                                                                   Average annual percent change, 1987-2007
                                                             ----------------------------------------------------
 NAICS                        Industry                         Output                        Labor     Unit labor
 code                                                         per hour   Output    Hours  compensation   costs

                          Mining Industries

21       Mining                                                 -0.2      -0.3      -0.1       4.8       5.1
211      Oil and gas extraction                                  1.0      -0.9      -1.8       5.0       5.9
2111     Oil and gas extraction                                  1.0      -0.9      -1.8       5.0       5.9
212      Mining, except oil and gas                              2.1       0.9      -1.2       1.8       0.9
2121     Coal mining                                             2.8       0.0      -2.8       0.0       0.0
2122     Metal ore mining                                        1.9       1.9       0.0       4.2       2.2
2123     Nonmetallic mineral mining and quarrying                1.1       1.1       0.0       3.2       2.1
213      Support activities for mining                           3.5       5.9       2.3       8.5       2.5
2131     Support activities for mining                           3.5       5.9       2.3       8.5       2.5

                    Service-Providing Industries

                              Utilities

2211     Power generation and supply                             2.8       1.2      -1.5       2.9       1.6
2212     Natural gas distribution                                2.9       1.3      -1.5       3.4       2.1

                   Transportation and Warehousing

481      Air transportation                                      3.2       3.4       0.3       3.1      -0.3
482111   Line-haul railroads                                     4.3       2.3      -2.0       1.3      -1.0
48412    General freight trucking, long-distance                 1.5       3.2       1.7       3.7       0.5
48421    Used household and office goods moving                 -0.7       0.3       1.0       4.1       3.8
491      Postal service                                          1.1       1.0       0.0       4.6       3.5
4911     Postal service                                          1.1       1.0       0.0       4.6       3.5
492      Couriers and messengers                                -0.6       2.5       3.1       5.4       2.8
493      Warehousing and storage (1)                             2.8       6.2       3.3       6.2      -0.1
4931     Warehousing and storage (1)                             2.8       6.2       3.3       6.2      -0.1
49311    General warehousing and storage (1)                     4.8       8.2       3.2       6.8      -1.3
49312    Refrigerated warehousing and storage (1)               -0.6       3.0       3.6       4.8       1.7

                             Information

511      Publishing                                              4.3       4.9       0.5       6.0       1.0
5111     Newspaper, book, and directory publishers               0.4      -0.4      -0.8       3.7       4.1
5112     Software publishers                                    15.6      23.5       6.9      12.6      -8.9
51213    Motion picture and video exhibition                     1.0       1.7       0.7       3.9       2.2
515      Broadcasting, except internet                           1.5       2.7       1.3       5.4       2.6
5151     Radio and television broadcasting                       0.6       0.8       0.2       4.5       3.6
5152     Cable and other subscription programming                3.0       8.2       5.0      10.7       2.3
5171     Wired telecommunications carriers                       4.7       2.9      -1.7       1.9      -1.0
5172     Wireless telecommunications carriers                    9.4      23.3      12.7      16.0      -6.0
5175     Cable and other program distribution                    0.8       6.0       5.1      10.1       3.9

                        Finance and Insurance

52211    Commercial banking                                      2.6       2.6       0.0       5.9       3.1

                 Real Estate and Rental and Leasing

532111   Passenger car rental                                    1.7       3.3       1.6       6.4       3.0
53212    Truck, trailer and RV rental and leasing                5.4       4.6      -0.7       3.6      -1.0
53223    Video tape and disc rental                              5.5       5.9       0.4       3.8      -1.9

                 Professional and Technical Services

541213   Tax preparation services                                1.8       4.3       2.5       4.9       0.6
54131    Architectural services                                  1.6       4.3       2.6       6.4       2.0
54133    Engineering services                                    1.0       3.3       2.3       6.9       3.4
54181    Advertising agencies                                    1.9       2.4       0.5       5.1       2.7
541921   Photography studios, portrait                           0.3       2.7       2.4       4.9       2.1

                  Administrative and Waste Services

56131    Employment placement agencies (2)                       3.2       5.5       2.3      10.1       4.3
56151    Travel agencies                                         3.9       2.9      -1.0       4.2       1.3
56172    Janitorial services                                     2.5       4.6       2.1       6.1       1.4

                  Health Care and Social Assistance

6215     Medical and diagnostic laboratories (2)                 3.1       6.6       3.4       6.3      -0.3
621511   Medical laboratories (2)                                2.7       5.6       2.8       5.4      -0.1
621512   Diagnostic imaging centers (2)                          3.4       8.4       4.8       8.4       0.0

                 Arts, Entertainment, and Recreation

71311    Amusement and theme parks                              -0.4       2.7       3.1       6.5       3.7
71395    Bowling centers                                         0.7      -0.9      -1.7       1.5       2.4

                   Accommodation and Food Services

72       Accommodation and food services                         0.7       2.4       1.6       5.6       3.2
721      Accommodation                                           1.2       2.5       1.3       5.6       3.0
7211     Traveler accommodation                                  1.3       2.6       1.3       5.6       3.0
722      Food services and drinking places                       0.6       2.4       1.7       5.7       3.2
7221     Full-service restaurants                                0.6       2.4       1.8       6.7       4.1
7222     Limited-service eating places                           0.6       2.5       1.9       5.4       2.8
7223     Special food services                                   1.5       2.6       1.1       4.1       1.4
7224     Drinking places (alcoholic beverages)                   0.0      -0.1      -0.1       2.4       2.5

                           Other Services

8111     Automotive repair and maintenance                       1.3       2.2       0.9       4.5       2.3
81142    Reupholstery and furniture repair                       0.0      -1.8      -1.8       1.3       3.1
81211    Hair, nail and skin care services                       2.4       3.4       0.9       5.5       2.1
81221    Funeral homes and funeral services                     -0.3      -0.2       0.2       4.4       4.6
8123     Drycleaning and laundry services                        0.8       0.5      -0.3       3.3       2.7
81292    Photofinishing                                          0.7      -4.6      -5.3      -1.9       2.8


(1) For NAICS industries 493, 4931, 49311, and 49312, average annual percent changes are for 1992-2007.
(2) For NAICS industries 56131, 6215, 621511, and 621512, average annual percent changes are for 1994-2007.

Last Modified Date: May 20, 2009