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For release 10:00 a.m. (EDT) Thursday, May 23, 2019 USDL-19-0858 Technical information: (202) 691-5606 productivity@bls.gov www.bls.gov/lpc Media contact: (202) 691-5902 PressOffice@bls.gov PRODUCTIVITY AND COSTS BY INDUSTRY SELECTED SERVICE-PROVIDING INDUSTRIES - 2018 Labor productivity rose in 18 of 28 selected service-providing industries in 2018, the U.S. Bureau of Labor Statistics reported today. This was similar to 2017, when labor productivity increased in 19 of 28 industries. Output increased in 21 industries in 2018, while hours worked increased in 15 industries. Trends in Labor Productivity in 2018 Labor productivity increased in 18 of 28 industries in 2018. Among those with increasing productivity, output grew in 15 industries and hours worked grew in 7 industries. Productivity gains of at least 7.0 percent occurred in 4 industries: natural gas distribution (13.5 percent), drycleaning and laundry services (10.9 percent), wireless telecommunications carriers (10.1 percent), and travel arrangement and reservation services (7.3 percent). In all 4 of these industries, output increases coincided with declines in hours worked. Hours worked grew in 15 of the 28 industries. Hours worked increased in 8 industries which recorded declines in productivity. Of these, the largest gains in hours worked were in warehousing and storage (10.4 percent), automotive repair and maintenance (4.6 percent), and couriers and messengers (4.4 percent). Unit labor costs declined in 8 industries in 2018. Each of the industries with a decline in unit labor costs also recorded an increase in productivity. Increases in labor productivity counter the impact of rising hourly compensation on unit labor costs facing employers. Trends in Unit Labor Costs in 2018 The largest declines in unit labor costs were in natural gas distribution (-9.7 percent) and wireless telecommunications carriers (-7.9 percent). In both industries, productivity grew substantially more than hourly compensation. 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 compensation rose in all of the 28 industries measured. Long Term Productivity Trends Over the long term, productivity rose in 45 out of 58 service-providing industries. For the majority of the industries studied, this period extends from 1987 to 2017. Median long term productivity growth for all 58 industries was approximately 1.4 percent per year. Output increased over the long term in 45 industries while hours worked increased in 38 industries. Productivity increased in 40 of the 58 industries in the period from 2007 to 2017 that began with a severe recession. During this period, only 37 industries had increases in output and 26 experienced growth in hours worked. ************************************************************************************************************ * Want to know more? * * * * Access more productivity data using the data dashboard, * * at www.bls.gov/lpc/lpc_by_industry_dashboard.xlsx * * - Additional industries and sectors * * - Detailed data series: indexes of productivity and related measures; rates of change; and * * levels of industry employment, hours worked, nominal value of production, and labor compensation * * - Additional years and long-term data * * * * More information from the BLS productivity program is available at www.bls.gov/lpc. * * * * Questions? * * * * Additional information can be obtained by calling the BLS productivity program at (202) 691-5606 or by * * sending an email to productivity@bls.gov. Information in this release will be made available to sensory * * impaired individuals upon request. Voice phone: (202) 691-5200; Federal Relay Service: (800) 877-8339. * * * * Subscribe to news releases * * * * Subscribe to productivity news releases on the BLS website at * * https://subscriptions.bls.gov/accounts/USDOLBLS/subscriber/new. * * * ************************************************************************************************************
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: Real 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. Postal Service; the Postal Rate Commission; and the Federal Deposit Insurance Corporation. Data from the Quarterly Service Survey from the Census Bureau are used to construct preliminary output measures for 2018 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 2018 are constructed using data from the BLS Quarterly Census of Employment and Wages (QCEW).
Industry | 2012 NAICS code | 2018 Employment (thousands) |
Percent change, 2017-2018 | ||||
---|---|---|---|---|---|---|---|
Labor productivity | Unit labor costs | Output | Hours worked | Labor compensation | |||
Utilities |
|||||||
Utilities |
22 |
554.7 | 4.5 | -2.3 | 4.5 | 0.0 | 2.0 |
Utilities |
221 |
554.7 | 4.5 | -2.3 | 4.5 | 0.0 | 2.0 |
Power generation and supply |
2211 |
392.7 | 2.6 | -0.9 | 3.2 | 0.7 | 2.3 |
Natural gas distribution |
2212 |
110.0 | 13.5 | -9.7 | 10.7 | -2.4 | 0.0 |
Water, sewage and other systems |
2213 |
52.0 | -0.5 | 6.6 | -0.5 | 0.0 | 6.0 |
Transportation and Warehousing |
|||||||
Air transportation |
481 |
481.6 | 5.1 | 0.0 | 5.1 | 0.0 | 5.2 |
Line-haul railroads |
482111 |
166.2 | -0.6 | 5.3 | 0.0 | 0.6 | 5.2 |
Truck transportation |
484 |
1,704.0 | -0.3 | 5.0 | 2.4 | 2.7 | 7.5 |
General freight trucking |
4841 |
1,224.4 | 1.5 | 3.1 | 4.0 | 2.5 | 7.2 |
General freight trucking, local |
48411 |
326.5 | -0.3 | 3.7 | 3.5 | 3.8 | 7.4 |
General freight trucking, long-distance |
48412 |
897.9 | 2.0 | 2.9 | 4.1 | 2.1 | 7.2 |
Specialized freight trucking |
4842 |
479.6 | -3.5 | 8.7 | -0.4 | 3.2 | 8.3 |
Postal service |
491 |
608.6 | 0.0 | 5.5 | -1.5 | -1.5 | 4.0 |
Postal service |
4911 |
608.6 | 0.0 | 5.5 | -1.5 | -1.5 | 4.0 |
Couriers and messengers |
492 |
757.1 | -1.6 | 4.1 | 2.7 | 4.4 | 7.0 |
Warehousing and storage |
493 |
1,143.4 | -7.6 | 11.2 | 2.0 | 10.4 | 13.4 |
Warehousing and storage |
4931 |
1,143.4 | -7.6 | 11.2 | 2.0 | 10.4 | 13.4 |
Information |
|||||||
Publishing |
511 |
761.9 | 7.3 | 1.2 | 9.7 | 2.3 | 11.1 |
Newspaper publishers |
51111 |
153.5 | 3.8 | -1.5 | -2.2 | -5.8 | -3.7 |
Periodical publishers |
51112 |
96.4 | 1.8 | 9.4 | -5.5 | -7.1 | 3.4 |
Software publishers |
5112 |
409.3 | 4.0 | 0.5 | 15.5 | 11.0 | 16.0 |
Broadcasting, except Internet |
515 |
276.2 | 4.5 | 0.0 | 4.9 | 0.4 | 4.9 |
Radio and television broadcasting |
5151 |
221.6 | 5.7 | -2.5 | 5.7 | 0.0 | 3.0 |
Cable and other subscription programming |
5152 |
54.6 | 2.1 | 4.5 | 3.8 | 1.6 | 8.4 |
Wired telecommunications carriers |
5171 |
551.6 | 3.1 | 1.6 | -4.6 | -7.5 | -3.1 |
Wireless telecommunications carriers |
5172 |
116.9 | 10.1 | -7.9 | 6.6 | -3.1 | -1.8 |
Finance and Insurance |
|||||||
Commercial banking |
52211 |
1,320.4 | 1.5 | 2.3 | 1.7 | 0.3 | 4.0 |
Real Estate and Rental and Leasing |
|||||||
Truck, trailer, and RV rental and leasing |
53212 |
86.1 | 2.8 | 6.2 | 7.2 | 4.3 | 13.8 |
Professional and Technical Services |
|||||||
Accounting and bookkeeping services |
5412 |
1,172.1 | -0.9 | 5.5 | 0.1 | 1.0 | 5.6 |
Accounting and bookkeeping services |
54121 |
1,172.1 | -0.9 | 5.5 | 0.1 | 1.0 | 5.6 |
Engineering services |
54133 |
1,013.2 | 1.9 | 2.0 | 3.4 | 1.4 | 5.5 |
Administrative and Waste Services |
|||||||
Travel arrangement and reservation services |
5615 |
244.7 | 7.3 | -1.4 | 3.1 | -3.9 | 1.7 |
Health Care and Social Assistance |
|||||||
Medical and diagnostic laboratories |
6215 |
290.7 | -0.8 | 4.0 | 1.0 | 1.8 | 5.1 |
Arts, Entertainment, and Recreation |
|||||||
Amusement parks and arcades |
7131 |
214.3 | 4.8 | 3.6 | 3.8 | -1.0 | 7.5 |
Gambling industries |
7132 |
128.1 | 6.6 | -1.4 | 1.5 | -4.7 | 0.1 |
Other Services |
|||||||
Automotive repair and maintenance |
8111 |
1,176.9 | -3.9 | 8.6 | 0.4 | 4.6 | 9.1 |
Drycleaning and laundry services |
8123 |
311.0 | 10.9 | -4.9 | 7.3 | -3.3 | 2.1 |
Industry | 2012 NAICS code | 2017 Employment (thousands) |
Average annual percent change, 1987-2017 | ||||
---|---|---|---|---|---|---|---|
Labor productivity | Unit labor costs | Output | Hours worked | Labor compensation | |||
Utilities |
|||||||
Utilities |
22 |
555.4 | 2.0 | 1.6 | 1.3 | -0.7 | 2.9 |
Utilities |
221 |
555.4 | 2.0 | 1.6 | 1.3 | -0.7 | 2.9 |
Power generation and supply |
2211 |
392.7 | 2.8 | 0.8 | 1.9 | -0.9 | 2.7 |
Natural gas distribution |
2212 |
112.1 | 0.7 | 3.6 | -0.3 | -1.0 | 3.3 |
Water, sewage and other systems |
2213 |
50.6 | -1.8 | 4.7 | 0.7 | 2.5 | 5.4 |
Transportation and Warehousing |
|||||||
Air transportation |
481 |
468.2 | 3.0 | 0.9 | 2.7 | -0.3 | 3.6 |
Line-haul railroads |
482111 |
167.8 | 3.6 | -0.4 | 1.8 | -1.7 | 1.4 |
Truck transportation(1) |
484 |
1,667.3 | 0.7 | 1.0 | 2.0 | 1.3 | 3.0 |
General freight trucking(1) |
4841 |
1,194.8 | 1.1 | 1.0 | 2.3 | 1.2 | 3.4 |
General freight trucking, local(1) |
48411 |
317.7 | 2.7 | 0.2 | 3.7 | 1.0 | 3.9 |
General freight trucking, long-distance |
48412 |
877.1 | 1.3 | 0.5 | 2.2 | 0.9 | 2.8 |
Specialized freight trucking(2) |
4842 |
472.5 | 0.8 | 1.9 | 1.9 | 1.1 | 3.8 |
Used household and office goods moving |
48421 |
101.1 | -0.4 | 2.6 | -0.1 | 0.3 | 2.5 |
Other specialized trucking, local(2) |
48422 |
233.8 | 0.3 | 2.3 | 1.7 | 1.4 | 4.1 |
Other specialized trucking, long-distance(2) |
48423 |
137.6 | 1.1 | 1.3 | 3.2 | 2.0 | 4.6 |
Postal service |
491 |
615.4 | 0.4 | 2.9 | -0.6 | -1.0 | 2.3 |
Postal service |
4911 |
615.4 | 0.4 | 2.9 | -0.6 | -1.0 | 2.3 |
Couriers and messengers |
492 |
710.8 | -1.9 | 3.2 | 0.6 | 2.6 | 3.9 |
Warehousing and storage(1) |
493 |
1,037.8 | 1.4 | 0.3 | 5.6 | 4.1 | 5.8 |
Warehousing and storage(1) |
4931 |
1,037.8 | 1.4 | 0.3 | 5.6 | 4.1 | 5.8 |
General warehousing and storage(1) |
49311 |
914.9 | 2.5 | -0.5 | 6.9 | 4.3 | 6.4 |
Refrigerated warehousing and storage(1) |
49312 |
62.5 | -0.2 | 1.5 | 2.9 | 3.1 | 4.4 |
Information |
|||||||
Publishing |
511 |
760.5 | 3.8 | 1.6 | 3.3 | -0.5 | 5.0 |
Newspaper, book, and directory publishers |
5111 |
379.0 | 0.1 | 4.0 | -2.5 | -2.6 | 1.3 |
Newspaper publishers |
51111 |
168.8 | -0.6 | 4.0 | -4.2 | -3.7 | -0.5 |
Periodical publishers |
51112 |
102.3 | -0.4 | 4.7 | -1.6 | -1.2 | 3.0 |
Book publishers |
51113 |
66.4 | -0.2 | 4.7 | -0.9 | -0.7 | 3.7 |
Software publishers |
5112 |
381.5 | 10.8 | -5.2 | 17.2 | 5.8 | 11.1 |
Motion picture and video exhibition |
51213 |
148.9 | 1.4 | 2.0 | 1.8 | 0.4 | 3.8 |
Broadcasting, except Internet |
515 |
276.3 | 3.0 | 1.7 | 2.9 | -0.1 | 4.6 |
Radio and television broadcasting |
5151 |
222.2 | 2.2 | 1.7 | 1.8 | -0.4 | 3.5 |
Radio broadcasting |
51511 |
87.5 | 3.7 | 1.1 | 2.5 | -1.2 | 3.6 |
Cable and other subscription programming |
5152 |
54.1 | 5.2 | 2.9 | 6.4 | 1.2 | 9.5 |
Wired telecommunications carriers |
5171 |
586.6 | 3.6 | -0.7 | 2.6 | -0.9 | 1.9 |
Wireless telecommunications carriers |
5172 |
120.3 | 11.9 | -6.9 | 18.5 | 5.9 | 10.4 |
Finance and Insurance |
|||||||
Commercial banking |
52211 |
1,323.6 | 3.0 | 2.0 | 3.0 | 0.0 | 5.0 |
Real Estate and Rental and Leasing |
|||||||
Passenger car rental |
532111 |
122.3 | 2.1 | 1.4 | 3.1 | 1.0 | 4.6 |
Truck, trailer, and RV rental and leasing |
53212 |
79.8 | 1.9 | 1.1 | 2.7 | 0.7 | 3.8 |
Video tape and disc rental |
53223 |
10.3 | 6.7 | -2.3 | -2.3 | -8.4 | -4.6 |
Professional and Technical Services |
|||||||
Accounting and bookkeeping services(3) |
5412 |
1,151.7 | 2.6 | 1.0 | 3.3 | 0.6 | 4.4 |
Accounting and bookkeeping services(3) |
54121 |
1,151.7 | 2.6 | 1.0 | 3.3 | 0.6 | 4.4 |
Offices of certified public accountants(3) |
541211 |
489.5 | 2.0 | 2.1 | 3.0 | 1.0 | 5.2 |
Tax preparation services |
541213 |
137.2 | 0.5 | 2.1 | 2.0 | 1.5 | 4.2 |
Other accounting services(3) |
541219 |
353.3 | 4.6 | -1.8 | 4.7 | 0.1 | 2.8 |
Architectural services |
54131 |
208.9 | 1.4 | 1.9 | 2.6 | 1.2 | 4.5 |
Engineering services |
54133 |
994.2 | 1.2 | 2.7 | 2.8 | 1.6 | 5.6 |
Advertising agencies |
54181 |
219.0 | 1.9 | 2.1 | 2.4 | 0.5 | 4.6 |
Photography studios, portrait |
541921 |
58.4 | 0.3 | 1.7 | 1.2 | 1.0 | 2.9 |
Veterinary services(4) |
54194 |
386.4 | -0.2 | 3.4 | 2.3 | 2.6 | 5.8 |
Administrative and Waste Services |
|||||||
Employment placement and executive search(5) |
56131 |
303.3 | 4.3 | 0.0 | 5.3 | 1.0 | 5.3 |
Travel arrangement and reservation services(3) |
5615 |
245.8 | 6.0 | -1.0 | 4.1 | -1.8 | 3.0 |
Travel agencies |
56151 |
107.5 | 5.6 | -0.7 | 4.6 | -0.9 | 3.8 |
Janitorial services |
56172 |
1,465.6 | 1.7 | 1.8 | 3.4 | 1.8 | 5.3 |
Health Care and Social Assistance |
|||||||
Medical and diagnostic laboratories(5) |
6215 |
282.1 | 1.9 | 0.5 | 5.0 | 3.0 | 5.5 |
Medical laboratories(5) |
621511 |
201.1 | 1.9 | 0.5 | 5.0 | 3.0 | 5.5 |
Diagnostic imaging centers(5) |
621512 |
81.0 | 2.1 | 0.8 | 5.0 | 2.8 | 5.8 |
Hospitals, except psychiatric and substance abuse hospitals(6) |
6221,3 |
4,886.1 | 0.5 | 3.2 | 2.0 | 1.5 | 5.3 |
Arts, Entertainment, and Recreation |
|||||||
Amusement parks and arcades(7) |
7131 |
210.6 | -1.4 | 5.3 | -0.7 | 0.8 | 4.6 |
Amusement and theme parks |
71311 |
182.5 | -0.5 | 4.0 | 1.8 | 2.3 | 5.9 |
Gambling industries(3) |
7132 |
131.4 | 2.1 | 2.0 | 2.1 | 0.0 | 4.2 |
Golf courses and country clubs(2) |
71391 |
395.4 | -1.2 | 4.1 | 0.1 | 1.3 | 4.2 |
Fitness and recreational sports centers(2) |
71394 |
658.5 | 3.7 | -0.7 | 4.4 | 0.7 | 3.7 |
Bowling centers |
71395 |
68.8 | 0.7 | 3.0 | -1.1 | -1.7 | 1.9 |
Accommodation and Food Services |
|||||||
Accommodation and food services |
72 |
13,978.8 | 0.8 | 2.7 | 2.3 | 1.6 | 5.1 |
Accommodation |
721 |
2,027.2 | 1.9 | 1.8 | 2.7 | 0.8 | 4.6 |
Traveler accommodation |
7211 |
1,934.1 | 2.0 | 1.8 | 2.8 | 0.8 | 4.6 |
Hotels and motels, except casino hotels |
72111 |
1,624.4 | 1.4 | 2.5 | 2.2 | 0.8 | 4.7 |
Food services and drinking places |
722 |
11,951.6 | 0.4 | 3.0 | 2.2 | 1.8 | 5.3 |
Special food services |
7223 |
843.4 | 1.2 | 1.5 | 2.5 | 1.2 | 4.0 |
Drinking places, alcoholic beverages |
7224 |
405.5 | -0.3 | 3.1 | -0.1 | 0.2 | 3.0 |
Restaurants and other eating places |
72251 |
10,702.7 | 0.4 | 3.2 | 2.3 | 1.9 | 5.6 |
Full-service restaurants |
722511 |
5,482.2 | 0.5 | 3.6 | 2.3 | 1.7 | 6.0 |
Limited-service eating places |
722513,4,5 |
5,220.5 | 0.4 | 2.8 | 2.4 | 2.0 | 5.2 |
Other Services |
|||||||
Automotive repair and maintenance |
8111 |
1,129.1 | 1.1 | 2.1 | 1.5 | 0.4 | 3.7 |
Reupholstery and furniture repair |
81142 |
21.0 | -0.9 | 3.8 | -2.8 | -2.0 | 0.8 |
Personal care services |
8121 |
1,262.9 | 2.2 | 1.7 | 3.4 | 1.2 | 5.2 |
Hair, nail, and skin care services |
81211 |
1,037.0 | 2.0 | 1.8 | 3.0 | 1.0 | 4.9 |
Funeral homes and funeral services |
81221 |
109.5 | -0.2 | 3.9 | -0.3 | 0.0 | 3.6 |
Drycleaning and laundry services |
8123 |
313.5 | 2.0 | 1.5 | 1.1 | -0.9 | 2.6 |
Coin-operated laundries and drycleaners |
81231 |
42.7 | 2.3 | 1.8 | 0.4 | -1.9 | 2.3 |
Drycleaning and laundry services |
81232 |
138.1 | 0.8 | 2.2 | -1.2 | -1.9 | 1.0 |
Linen and uniform supply |
81233 |
132.7 | 2.3 | 0.9 | 3.1 | 0.8 | 4.1 |
Photofinishing |
81292 |
10.4 | 3.4 | 1.7 | -4.0 | -7.1 | -2.4 |
Footnotes |