The .gov means it's official. Federal government websites often end in .gov or .mil. Before sharing sensitive information,
make sure you're on a federal government site.
The site is secure. The
https:// ensures that you are connecting to the official website and that any
information you provide is encrypted and transmitted securely.
Productivity and Costs by Industry: Manufacturing Industries News Release
For release 10:00 a.m. (EDT) Thursday, March 27, 2014 USDL-14-0492
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:
MANUFACTURING INDUSTRIES, 2012
Labor productivity -- defined as output per hour -- rose in 54 percent of the detailed manufacturing
industries covered in 2012, the U.S. Bureau of Labor Statistics reported today. This was down from 68
percent in 2011. Unit labor costs, which reflect the total labor costs required to produce a unit of output,
declined in 39 percent of the industries in 2012 compared to 49 percent in 2011. More than half of
industries with productivity increases posted declines in unit labor costs.
Output and hours rose in more industries in 2012 than in the previous year. (See table 1.)
Output rose in 2012 in 40 of 57 NAICS 4-digit manufacturing industries for which data were available,
up from 37 industries in 2011. Hours increased in even more industries, 41 compared to 32 in 2011.
Hours rose in more industries in 2012 than in any year since 1997.
The latest industry productivity data for manufacturing industries and for industries in other sectors are
available on the BLS website at www.bls.gov/lpc/iprprodydata.htm.
******************************************************************************************************
* Industry Productivity Hours Series Changes *
* *
* Beginning with this news release, labor hours for manufacturing industries represent hours worked. *
* See Technical Note in this news release for more information about how hours worked are derived. *
******************************************************************************************************
During the 1987-2012 period, productivity rose in all but 1 industry, with productivity growth in most
industries averaging between 0.1 and 4.0 percent per year. Productivity also increased in a majority of
industries between 2007 and 2012, despite the fact that the period encompassed a severe recession. However,
fewer industries had productivity growth greater than 2 percent per year, and productivity declined in 18
industries. In the most recent year, rates of productivity change were more evenly distributed than in either
of the longer time periods.
From 1987 to 2012, productivity growth was driven by rising output in many industries, while hours increased
in very few. Productivity increased in fewer industries from 2007 to 2012, as output and hours rose in
relatively few industries. In most industries, productivity advanced as output was produced with fewer hours.
In contrast, output and hours rose in more industries in 2012 as the economic recovery continued. Increases
in hours more than offset increases in output in a number of industries, with the result that productivity
rose in fewer industries in 2012 than in the other two periods.
3-Digit NAICS Industries
Labor productivity increased in 13 of the 21 NAICS 3-digit manufacturing industries in 2012, as output
increased in 17 industries and hours fell in 5 industries. Productivity rose fastest in transportation
equipment, where output increased much faster than hours. Of the 21 industries, 10 registered greater
productivity growth, or smaller productivity declines, than in the previous year.
Unit labor costs fell in 9 of the 21 industries. Unit labor costs declined more frequently in industries
where productivity rose, as productivity gains offset increases in hourly compensation. Unit labor costs
fell in 8 of the 13 industries where productivity rose; in the 8 industries where productivity fell, 7
recorded an increase in unit labor costs.
Revisions
This release updates productivity measures to 2012 for all 21 NAICS 3-digit and for 57 of the 86 NAICS
4-digit manufacturing industries. Data from the 2012 Economic Census were not available at the time of
this release. As a result, BLS developed output estimates for 2012 for the industries covered in this
release based on trends in industrial production from the Federal Reserve Board and on trends from the
manufacturers’ shipments, inventories, and orders (M3) survey from the Census Bureau, along with data
on price changes from BLS. Labor compensation in 2012 is based on trends in industry wages from the
BLS Quarterly Census of Employment and Wages (QCEW). The hours measures in this news release
incorporate the annual benchmark revision of the BLS Current Employment Statistics (CES) survey
published in February 2014. For the first time, labor hours in this news release represent hours at work.
Data on hours paid from the CES were adjusted using industry hours worked/hours paid ratios derived
from National Compensation Survey (NCS) data. Data in this release are preliminary and subject to
revision. Measures for 2012 for all 3-digit and 4-digit industries will be updated in a future release.
The industries included in this news release are classified according to the 2007 NAICS. 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.
More detailed data for industries covered in this release and for additional industries are available on
the BLS Labor Productivity and Costs website at www.bls.gov/lpc. Data include productivity and related
indexes; rates of change; and levels of industry employment, hours, nominal value of production, and
labor compensation. Additional information can be obtained by calling the Division of Industry
Productivity Studies (202-691-5618) or by sending a request by e-mail to dipsweb@bls.gov.
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.
Customers can subscribe to the industry productivity program’s 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; managerial skill; in addition to the characteristics and effort of the workforce.
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 reflects sectoral value of production, derived
by adjusting shipments for changes in inventories and removing intra-industry transactions. Industry
output measures are constructed primarily using data from the economic censuses and annual surveys of
the Census Bureau, U.S. Department of Commerce, together with data on price changes primarily from
BLS. The 2012 estimates are constructed with data on industrial production from the Federal Reserve
and manufacturers’ shipments, inventories, and orders from the Census Bureau.
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. 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 2012 are constructed using data from the BLS Quarterly Census of Employment and
Wages (QCEW).
Table 1. Percent change in output per hour, unit labor costs, and related data, 2011-2012
Industry
NAICS code
2012 Employment (thousands)
Percent change, 2011-2012
Output per hour
Output
Hours
Labor compensation
Unit labor costs
Manufacturing
Food
311
1,514.8
1.1
3.7
2.6
3.3
-0.4
Grain and oilseed milling
3112
60.7
-2.3
-0.1
2.3
7.2
7.3
Fruit and vegetable preserving and specialty
3114
173.5
4.4
4.4
0.0
0.6
-3.7
Dairy products
3115
136.4
-2.8
2.5
5.5
4.3
1.7
Animal slaughtering and processing
3116
485.2
0.5
0.5
-0.1
0.9
0.4
Bakeries and tortilla manufacturing
3118
317.4
-2.0
4.0
6.2
2.6
-1.3
Other food products
3119
176.9
1.0
7.0
6.0
6.5
-0.5
Beverages and tobacco products
312
195.9
1.8
1.6
-0.2
3.2
1.6
Beverages
3121
181.5
3.4
4.0
0.5
4.7
0.7
Tobacco and tobacco products
3122
14.4
5.6
-4.5
-9.5
-5.6
-1.2
Textile mills
313
128.0
0.4
2.8
2.3
0.7
-2.0
Fiber, yarn, and thread mills
3131
28.5
-0.5
-4.2
-3.7
-1.2
3.2
Fabric mills
3132
60.0
1.0
4.7
3.7
1.7
-2.9
Textile and fabric finishing and coating mills
3133
39.5
-2.7
2.7
5.5
0.2
-2.4
Textile product mills
314
125.9
-0.6
0.5
1.1
0.3
-0.2
Textile furnishings mills
3141
55.2
0.4
-1.2
-1.6
-2.4
-1.2
Other textile product mills
3149
70.7
-1.1
2.4
3.5
2.8
0.4
Apparel
315
169.9
-1.5
-3.5
-2.1
-2.7
0.8
Leather and allied products
316
35.0
-8.1
-0.1
8.6
4.7
4.8
Wood products
321
361.5
1.2
4.3
3.0
3.7
-0.5
Sawmills and wood preservation
3211
89.9
1.9
4.2
2.2
4.6
0.4
Plywood and engineered wood products
3212
64.0
-3.6
4.7
8.5
5.6
0.9
Other wood products
3219
207.6
2.4
4.2
1.7
2.6
-1.5
Paper and paper products
322
381.9
0.6
-2.4
-3.0
0.4
2.9
Pulp, paper, and paperboard mills
3221
108.7
0.5
-2.5
-3.0
1.4
4.0
Converted paper products
3222
273.2
0.7
-2.3
-2.9
-0.3
2.1
Printing and related support activities
323
482.2
-0.2
-2.4
-2.2
-1.0
1.5
Printing and related support activities
3231
482.2
-0.2
-2.4
-2.2
-1.0
1.5
Petroleum and coal products
324
113.2
-8.7
1.0
10.6
6.4
5.4
Petroleum and coal products
3241
113.2
-8.7
1.0
10.6
6.4
5.4
Chemicals
325
797.6
-0.4
0.2
0.5
3.8
3.6
Basic chemicals
3251
142.6
0.7
0.2
-0.5
1.6
1.3
Agricultural chemicals
3253
37.3
-7.2
-3.2
4.3
6.9
10.5
Pharmaceuticals and medicines
3254
273.1
-3.6
-3.5
0.1
6.3
10.1
Paints, coatings, and adhesives
3255
57.6
-6.4
-1.1
5.7
7.0
8.2
Plastics and rubber products
326
650.5
1.8
3.2
1.3
3.9
0.7
Plastics products
3261
519.1
2.8
4.3
1.4
4.5
0.2
Rubber products
3262
131.4
-1.9
-1.1
0.9
1.9
3.0
Nonmetallic mineral products
327
391.2
-0.4
1.1
1.5
3.7
2.5
Clay products and refractories
3271
54.3
-1.7
4.5
6.3
0.9
-3.4
Glass and glass products
3272
86.7
-1.2
-2.9
-1.7
2.6
5.6
Cement and concrete products
3273
167.2
2.8
5.5
2.6
3.8
-1.5
Lime and gypsum products
3274
14.1
2.6
4.5
1.9
10.6
5.9
Other nonmetallic mineral products
3279
68.9
-2.7
-3.6
-0.9
4.6
8.5
Primary metals
331
406.9
0.8
2.1
1.3
5.0
2.9
Alumina and aluminum production
3313
61.3
-2.8
3.4
6.4
3.4
0.0
Foundries
3315
128.0
4.5
3.7
-0.7
6.5
2.7
Fabricated metal products
332
1,434.1
2.0
7.2
5.1
7.4
0.2
Forging and stamping
3321
98.3
2.3
6.1
3.8
8.4
2.2
Cutlery and hand tools
3322
42.2
-2.3
5.2
7.6
6.6
1.3
Architectural and structural metals
3323
344.9
4.7
8.3
3.4
7.0
-1.2
Spring and wire products
3326
42.9
-4.6
-7.3
-2.8
2.4
10.4
Machine shops and threaded products
3327
371.6
2.2
7.2
4.8
7.3
0.2
Coating, engraving, and heat treating metals
3328
137.2
2.1
7.1
4.8
6.5
-0.6
Other fabricated metal products
3329
276.2
0.0
8.6
8.6
8.6
0.0
Machinery
333
1,114.5
3.4
7.0
3.5
5.7
-1.2
Agriculture, construction, and mining machinery
3331
248.5
5.4
13.0
7.2
10.9
-1.9
Industrial machinery
3332
107.2
-3.8
-3.4
0.3
1.0
4.6
HVAC and commercial refrigeration equipment
3334
128.5
3.1
0.8
-2.2
-0.5
-1.3
Metalworking machinery
3335
184.2
0.3
8.2
7.9
8.3
0.1
Computer and electronic products
334
1,097.3
2.7
1.4
-1.2
0.1
-1.3
Semiconductors and electronic components
3344
388.1
5.5
5.3
-0.2
-0.2
-5.2
Electronic instruments
3345
400.5
-5.5
-5.7
-0.2
0.3
6.4
Electrical equipment and appliances
335
374.8
-2.0
1.9
4.0
4.4
2.4
Electric lighting equipment
3351
46.7
-2.6
2.9
5.6
12.8
9.7
Household appliances
3352
55.6
-3.3
-0.4
3.1
2.0
2.3
Electrical equipment
3353
144.3
-3.0
2.6
5.7
3.4
0.8
Other electrical equipment and components
3359
128.2
0.2
2.1
1.9
3.5
1.4
Transportation equipment
336
1,471.5
5.6
12.8
6.8
5.2
-6.7
Motor vehicles
3361
167.8
12.2
20.0
6.9
5.6
-12.0
Motor vehicle parts
3363
486.1
5.0
16.0
10.4
7.7
-7.2
Aerospace products and parts
3364
500.7
4.8
6.7
1.8
2.8
-3.7
Ship and boat building
3366
130.9
-2.1
7.1
9.4
6.7
-0.4
Other transportation equipment
3369
34.1
15.4
21.3
5.1
-3.9
-20.8
Furniture and related products
337
378.4
3.9
4.7
0.7
2.8
-1.8
Household and institutional furniture
3371
240.2
5.1
6.4
1.2
2.7
-3.4
Miscellaneous manufacturing
339
632.8
4.4
5.5
1.1
4.6
-0.9
Medical equipment and supplies
3391
315.6
5.8
6.4
0.6
4.7
-1.6
Table 2. Average annual percent change in output per hour, unit labor costs, and related data, 1987-2012
United States Department of Labor
