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Productivity and Costs by Industry: Selected Service-Providing Industries News Release
For release 10:00 a.m. (EDT) Wednesday, June 10, 2015 USDL-15-1133
Technical information: (202) 691-5618 • dipsweb@bls.gov • www.bls.gov/lpc
Media contact: (202) 691-5902 • PressOffice@bls.gov
PRODUCTIVITY AND COSTS BY INDUSTRY:
SELECTED SERVICE-PROVIDING INDUSTRIES, 2014
Labor productivity - defined as output per hour - rose in 60 percent of the 25 service-providing industries
covered in 2014, the U.S. Bureau of Labor Statistics reported today. This was equal to 2013, when labor
productivity also rose in 60 percent of industries. Output and hours increased in more industries in 2014
than in the previous year. Unit labor costs, which reflect the total labor costs required to produce a unit of
output, declined in 36 percent of the industries. Each of the nine industries with declines in unit labor costs
also recorded increases in productivity.
Radio and television broadcasting recorded the largest increase in labor productivity in 2014, followed by
cable and other subscription programming. The largest decline in productivity was in engineering services.
(See table 1.)
*******************************************************************************************************
* 2014 measures available for selected industries *
* *
* Labor productivity and related measures are being released through 2014 for a group of 25 detailed *
* and 5 aggregate service-providing industries. These measures are based on trends in production and *
* wages. Labor productivity measures for other service-providing industries are being released *
* through 2013. *
*******************************************************************************************************
Labor Productivity and Unit Labor Costs, 2014
Output per hour increased in 15 of the 25 industries studied in 2014. In each of these industries,
productivity rose as output growth was accompanied by declines or more modest increases in hours.
Productivity gains of over 7 percent occurred in three industries where output increases coincided with
declines in hours: radio and television broadcasting, cable and other subscription programming, and
drycleaning and laundry services. Two industries, air transportation and natural gas distribution, recorded
output gains of greater than 2 percent and yet also had productivity declines because of larger increases in
hours.
Unit labor costs fell in nine industries in 2014. 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. Total labor compensation rose in 2014 in 23 of the 25 industries measured.
Labor Productivity and Unit Labor Costs, 2013
In 2013, productivity rose in just over half of the service-providing industries studied. Output
increased in about 64 percent of the industries, as did hours. (See table 2.) Three industries recorded double-digit
growth in productivity in 2013: book publishers, wireless telecommunications carriers, and coin-operated
laundries and drycleaners. Each of these three industries experienced growth in output along with a decline
in hours.
Productivity and cost measures are published in this release for the first time for three industries:
accounting and bookkeeping services (NAICS 5412), other accounting services (NAICS 541219), and
gambling industries (NAICS 7132). Productivity rose in each of these three industries in 2013.
Output rose in two-thirds of the 12 largest (by employment) service-providing industries studied, while
hours grew in all but two. Productivity growth was greatest in hotels and motels, except casino hotels,
where moderate output growth outpaced the increase in hours. Productivity fell the most in engineering
services, where growth in hours coincided with a decline in output. Unit labor costs increased in all but
one industry, general warehousing and storage.
Productivity Trends in Selected Time Periods
Productivity rose in approximately 76 percent of the service-providing industries studied over the long
term, which for the majority of industries covers the period 1987 to 2013. Median productivity growth
among these industries was approximately 1.7 percent per year. (See table 3.) Productivity growth
over the long term was associated with rising output in many industries, while hours increased in
slightly more than half.
Productivity also increased in 60 percent of the industries studied between 2007 and 2013, despite the
fact that the period encompassed a severe recession. However, only 36 percent of the industries saw
increases in output, while just over a quarter experienced growth in hours.
Additional Information
This release updates productivity measures to 2014 for 25 detailed service-providing industries.
Additionally, productivity measures for a larger group of 55 detailed service-providing industries
have been updated through 2013. Output estimates for 2014 are based on trends in industrial
production from the Quarterly Service Survey (QSS) from the U.S. Census Bureau, along with data on
price changes from BLS. Labor compensation in 2014 is based on trends in industry wages from the
BLS Quarterly Census of Employment and Wages (QCEW). Data in this release for 2013 and 2014
are preliminary and subject to revision.
For the first time, the industries included in this news release are classified according to the 2012
NAICS. Indexes have been rebased from 2002=100 to 2007=100 starting with this release. While the
rates of change reported by BLS in this release are rounded to one decimal place, all percent changes are
calculated using index numbers rounded to three decimal places.
Year-to-year movements in industry productivity may be erratic, particularly in smaller industries. The
annual measures based on sample data may differ from measures generated by a census of
establishments in the industry. Annual changes in an industry’s output and use of labor may reflect
cyclical changes in the economy as well as long-term trends. As a result, long-term productivity trends
tend to be more reliable indicators of industry performance than year-to-year changes.
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 lower 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 advance output for 2014 for some industries.
Labor Hours: Labor hours reflect 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 2014 are constructed using
data from the BLS Quarterly Census of Employment and Wages (QCEW).
Table 1. Percent change in labor productivity, unit labor costs, and related data, 2013-2014
Industry
2012 NAICS code
2014 Employment (thousands)
Percent change, 2013-2014
Labor productivity
Output
Hours
Labor compensation
Unit labor costs
Utilities
Utilities
22
553.0
1.5
2.9
1.4
2.8
-0.1
Utilities
221
553.0
1.5
2.9
1.4
2.8
-0.1
Power generation and supply
2211
392.1
1.5
1.9
0.4
1.7
-0.2
Natural gas distribution
2212
113.1
-1.5
2.8
4.3
6.6
3.7
Water, sewage and other systems
2213
47.8
0.8
4.5
3.6
3.9
-0.6
Transportation and Warehousing
Air transportation
481
422.8
-0.2
2.7
2.9
6.7
4.0
Line-haul railroads
482111
187.4
-1.2
0.3
1.5
7.3
7.0
Truck transportation
484
1,631.0
3.5
7.5
3.9
6.3
-1.1
General freight trucking
4841
1,163.7
3.2
7.2
3.9
5.4
-1.7
General freight trucking, local
48411
303.7
2.5
9.5
6.9
4.8
-4.4
General freight trucking, long-distance
48412
860.0
3.8
6.7
2.8
5.6
-1.0
Postal service
491
593.0
-1.6
-2.4
-0.7
1.8
4.3
Postal service
4911
593.0
-1.6
-2.4
-0.7
1.8
4.3
Couriers and messengers
492
603.9
-6.5
-1.4
5.4
4.8
6.3
Warehousing and storage
493
740.7
0.6
2.0
1.3
6.0
3.9
Warehousing and storage
4931
740.7
0.6
2.0
1.3
6.0
3.9
Information
Publishing
511
751.3
5.7
3.2
-2.3
6.8
3.4
Newspaper publishers
51111
228.9
-4.1
-6.5
-2.4
-1.3
5.6
Periodical publishers
51112
109.9
-2.8
-4.8
-2.1
2.1
7.2
Software publishers
5112
312.5
6.7
8.4
1.5
11.2
2.7
Broadcasting, except Internet
515
290.7
8.9
5.6
-3.0
1.4
-4.0
Radio and television broadcasting
5151
226.8
9.5
6.1
-3.1
7.5
1.3
Cable and other subscription programming
5152
63.9
8.3
5.3
-2.8
-11.4
-15.8
Wired telecommunications carriers
5171
614.3
-0.1
0.8
0.9
1.3
0.5
Wireless telecommunications carriers
5172
159.1
4.2
9.7
5.3
4.3
-4.9
Real Estate and Rental and Leasing
Truck, trailer, and RV rental and leasing
53212
64.5
1.0
8.8
7.7
9.1
0.3
Professional and Technical Services
Accounting and bookkeeping services
5412
1,108.8
2.7
7.9
5.1
5.8
-1.9
Accounting and bookkeeping services
54121
1,108.8
2.7
7.9
5.1
5.8
-1.9
Engineering services
54133
951.8
-8.3
-6.7
1.8
3.3
10.6
Administrative and Waste Services
Travel arrangement and reservation services
5615
214.1
6.2
1.9
-4.1
6.6
4.6
Health Care and Social Assistance
Medical and diagnostic laboratories
6215
261.8
1.3
1.8
0.4
3.4
1.6
Arts, Entertainment, and Recreation
Gambling industries
7132
139.9
0.4
3.1
2.7
1.3
-1.8
Other Services
Automotive repair and maintenance
8111
1,113.8
-1.2
0.8
2.0
6.0
5.2
Drycleaning and laundry services
8123
317.2
7.1
6.3
-0.7
5.4
-0.9
Table 2. Percent change in labor productivity, unit labor costs, and related data, 2012-2013
Industry
2012 NAICS code
2013 Employment (thousands)
Percent change, 2012-2013
Labor productivity
Output
Hours
Labor compensation
Unit labor costs
Utilities
Utilities
22
551.9
-1.2
0.5
1.7
3.4
2.9
Utilities
221
551.9
-1.2
0.5
1.7
3.4
2.9
Power generation and supply
2211
393.7
-2.5
-0.6
1.8
3.4
4.1
Natural gas distribution
2212
110.7
3.1
6.1
2.9
3.2
-2.7
Water, sewage and other systems
2213
47.5
-0.7
-2.6
-1.9
4.6
7.4
Transportation and Warehousing
Air transportation
481
417.7
5.9
1.4
-4.2
1.8
0.4
Line-haul railroads
482111
183.3
3.0
2.7
-0.3
1.8
-0.9
Truck transportation
484
1,572.5
0.3
1.9
1.6
2.3
0.4
General freight trucking
4841
1,117.5
0.8
1.4
0.6
1.4
0.1
General freight trucking, local
48411
290.0
1.0
2.0
0.9
1.7
-0.2
General freight trucking, long-distance
48412
827.5
0.7
1.3
0.5
1.3
0.1
Used household and office goods moving
48421
96.4
-2.4
5.4
8.0
5.9
0.5
Postal service
491
594.9
-0.3
-1.9
-1.6
-6.3
-4.5
Postal service
4911
594.9
-0.3
-1.9
-1.6
-6.3
-4.5
Couriers and messengers
492
573.3
-7.5
-2.0
6.0
-5.8
-3.9
Warehousing and storage
493
717.5
-2.0
5.8
7.9
4.2
-1.5
Warehousing and storage
4931
717.5
-2.0
5.8
7.9
4.2
-1.5
General warehousing and storage
49311
609.4
-2.6
6.5
9.4
5.1
-1.4
Refrigerated warehousing and storage
49312
52.1
1.6
-2.0
-3.5
-0.1
1.9
Information
Publishing
511
764.6
5.6
3.4
-2.1
1.4
-1.9
Newspaper, book, and directory publishers
5111
464.0
4.5
-3.1
-7.3
-5.5
-2.4
Newspaper publishers
51111
230.9
-2.2
-5.4
-3.2
-4.6
0.9
Periodical publishers
51112
113.5
8.9
-2.7
-10.6
-6.7
-4.2
Book publishers
51113
71.2
11.8
3.2
-7.7
-5.4
-8.3
Software publishers
5112
300.6
1.3
7.3
5.9
6.8
-0.5
Motion picture and video exhibition
51213
131.8
3.9
3.6
-0.3
4.0
0.4
Broadcasting, except Internet
515
294.9
2.7
2.4
-0.2
6.2
3.7
Radio and television broadcasting
5151
223.6
0.7
1.2
0.5
6.0
4.8
Radio broadcasting
51511
95.5
-4.5
-1.4
3.3
6.9
8.4
Cable and other subscription programming
5152
71.3
5.7
3.7
-1.9
6.6
2.8
Wired telecommunications carriers
5171
614.7
-3.5
-0.2
3.4
2.4
2.6
Wireless telecommunications carriers
5172
157.5
14.0
4.7
-8.2
4.0
-0.7
Finance and Insurance
Commercial banking
52211
1,313.9
1.3
-0.4
-1.7
1.2
1.6
Real Estate and Rental and Leasing
Passenger car rental
532111
110.2
-0.3
2.8
3.2
-0.8
-3.5
Truck, trailer, and RV rental and leasing
53212
61.7
-4.3
1.0
5.6
4.0
3.0
Video tape and disc rental
53223
22.8
9.7
-9.4
-17.4
-10.5
-1.1
Professional and Technical Services
Accounting and bookkeeping services
5412
1,092.7
0.8
3.0
2.2
1.7
-1.3
Accounting and bookkeeping services
54121
1,092.7
0.8
3.0
2.2
1.7
-1.3
Offices of certified public accountants
541211
439.3
1.3
2.9
1.6
3.3
0.5
Tax preparation services
541213
137.8
6.3
2.9
-3.1
1.3
-1.5
Other accounting services
541219
339.8
3.6
2.5
-1.0
-1.3
-3.7
Architectural services
54131
174.8
1.1
1.0
-0.1
1.5
0.4
Engineering services
54133
938.2
-5.6
-4.5
1.2
1.3
6.1
Advertising agencies
54181
202.6
1.4
1.9
0.5
4.8
2.8
Photography studios, portrait
541921
69.7
-3.4
-1.4
2.1
-0.7
0.7
Administrative and Waste Services
Employment placement and executive search
56131
294.3
-7.7
-3.2
4.9
-1.8
1.4
Travel arrangement and reservation services
5615
216.4
6.0
3.9
-2.0
3.0
-0.9
Travel agencies
56151
97.7
-4.3
-3.0
1.4
-0.9
2.2
Janitorial services
56172
1,325.2
-0.1
2.3
2.4
2.8
0.5
Health Care and Social Assistance
Medical and diagnostic laboratories
6215
260.8
1.2
2.4
1.3
5.3
2.8
Medical laboratories
621511
181.0
4.4
5.2
0.8
6.8
1.6
Diagnostic imaging centers
621512
79.8
-4.7
-2.3
2.5
2.1
4.5
Arts, Entertainment, and Recreation
Amusement and theme parks
71311
167.2
-0.7
2.1
2.9
-0.6
-2.6
Gambling industries
7132
140.7
6.6
7.7
1.1
2.2
-5.1
Golf courses and country clubs
71391
371.8
-4.6
-0.3
4.5
3.4
3.8
Fitness and recreational sports centers
71394
560.0
0.7
6.7
5.9
3.7
-2.8
Bowling centers
71395
71.6
1.3
9.2
7.9
10.7
1.3
Accommodation and Food Services
Accommodation and food services
72
12,473.0
-1.0
1.8
2.9
4.1
2.2
Accommodation
721
1,891.3
2.1
3.1
1.0
4.1
1.0
Traveler accommodation
7211
1,812.5
2.4
3.2
0.8
4.0
0.8
Hotels and motels, except casino hotels
72111
1,511.7
3.1
3.9
0.8
4.1
0.2
Food services and drinking places
722
10,581.7
-1.9
1.3
3.3
4.1
2.7
Special food services
7223
734.3
-0.3
-0.2
0.0
1.0
1.3
Drinking places, alcoholic beverages
7224
371.6
-5.5
-2.0
3.6
0.3
2.4
Restaurants and other eating places
72251
9,475.8
-1.9
1.6
3.6
4.6
2.9
Full-service restaurants
722511
4,956.1
-2.6
0.9
3.7
5.2
4.3
Limited-service eating places
722513,4,5
4,519.7
-1.1
2.4
3.5
3.7
1.3
Other Services
Automotive repair and maintenance
8111
1,097.7
-1.2
1.0
2.3
4.0
2.9
Reupholstery and furniture repair
81142
20.3
4.5
2.7
-1.7
2.8
0.1
Personal care services
8121
1,207.5
-3.8
3.0
7.0
8.5
5.3
Hair, nail, and skin care services
81211
986.5
-2.4
3.1
5.6
7.5
4.3
Funeral homes and funeral services
81221
108.2
-5.7
1.7
7.9
8.3
6.4
Drycleaning and laundry services
8123
319.1
7.9
3.8
-3.8
-0.4
-4.0
Coin-operated laundries and drycleaners
81231
42.7
32.9
0.9
-24.0
-6.8
-7.7
Drycleaning and laundry services
81232
151.3
3.7
-0.2
-3.8
-4.1
-3.9
Linen and uniform supply
81233
125.1
4.6
7.6
2.9
3.6
-3.8
Photofinishing
81292
13.0
4.3
5.3
0.9
6.5
1.1
Table 3. Average annual percent change in labor productivity, unit labor costs, and related data, 1987-2013
Footnotes (1) For NAICS industries 484, 4841, 48411, 493, 4931, 49311, and 49312, average annual percent changes are for 1992-2013. (2) For NAICS industries 5412, 54121, 541211, 541219, 5615,and 7132, average annual percent changes are for 1997-2013. (3) For NAICS industries 56131, 6215, 621511, and 621512, average annual percent changes are for 1994-2013. (4) For NAICS industries 71391 and 71394, average annual percent changes are for 2002-2013.
United States Department of Labor
