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.
United States Department of Labor
