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Productivity and Costs by Industry: Manufacturing and Mining Industries News Release
For release 10:00 a.m. (EDT) Tuesday, April 23, 2019 USDL-19-0695
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:
MANUFACTURING AND MINING INDUSTRIES, 2018
Labor productivity declines were widespread among manufacturing industries in 2018, with decreases
in 67 of the 86 four-digit NAICS industries. Of the 51 industries in durable manufacturing, 41 saw
productivity decreases in 2018 led by a decline in the lime and gypsum products industry of 11.8 percent.
Nondurable manufacturing also had widespread declines in 2018 with productivity falling in 26 of 35
industries, led by the textile and fabric finishing mills industry with a decrease of 11.3 percent. Of the 4
industries in the mining sector, 2 posted productivity gains in 2018 led by the oil and gas extraction
industry with an increase of 12.1 percent.
Labor Productivity Trends in NAICS 3-Digit Industries, 2018
Manufacturing
* Labor productivity decreased in 16 of the 21 NAICS 3-digit manufacturing industries in 2018,
as output declined in 16 industries and hours worked rose in 16.
* The printing and related support activities industry had the largest productivity gain, 2.0
percent, as output decreased but hours decreased more.
* The petroleum and coal products industry had the largest productivity decline, 7.8 percent,
as output fell 3.3 percent and hours worked increased 4.9 percent.
Mining
* Labor productivity rose by 12.1 percent in the oil and gas extraction industry where a
significant increase in output outpaced growth in hours worked.
* The mining, except oil and gas industry had a productivity decline of 3.5 percent, as the
increase in hours worked was larger than a modest increase in output.
Trends in Unit Labor Costs in 2018
Unit labor costs, which reflect the total labor costs required to produce a unit of output, rose in 73 of the
86 NAICS 4-digit manufacturing industries. Of the 51 industries in durable manufacturing, 47
experienced rising unit labor costs, led by the audio and video equipment industry which increased 30.1
percent. Nondurable manufacturing also experienced widespread increases in unit labor costs with 26 of
the 35 industries recording an increase, led by the other leather products industry with a rise of 8.6
percent. Of the 4 industries in the mining sector, 3 had increases in unit labor costs led by the metal ore
mining industry which increased 17.1 percent.
Unit Labor Cost Trends in NAICS 3-Digit Industries, 2018
Manufacturing
* Employers experience increased unit labor costs when hourly compensation growth exceeds
productivity growth. Unit labor costs increased in 20 of the 21 manufacturing industries, as
hourly compensation growth outpaced that of productivity. Textile mills was the exception
and had a decrease in unit labor costs due to hourly compensation declines that exceeded
productivity declines.
Mining
* Unit labor costs declined in the oil and gas extraction industry by 12.4 percent, as
productivity increased by 12.1 percent and hourly compensation decreased by 1.8 percent.
* The mining, except oil and gas industry saw a 7.6 percent increase in unit labor costs, as
hourly compensation rose by 3.8 percent while productivity dropped by 3.5 percent.
Long-Term Trends in Labor Productivity and Unit Labor Costs
Labor Productivity
* Over the entire 1987-2018 period, labor productivity rose in 83 of the 90 manufacturing
and mining industries. Output rose in 54 industries, while hours worked increased in only
17. In the 17 industries where hours worked increased, they rose at a slow pace, less than
half a percent per year on average.
* During the more recent 2007-2018 period, which included the Great Recession of 2007-09,
productivity increased in only 36 industries. These increases are predominantly the result
of a decline in hours worked rather than an increase in output, as hours worked fell in 31 of
these industries while output increased in only 10.
Unit Labor Costs
* During the 1987-2018 period, unit labor costs increased in 77 of the 86 NAICS 4-digit
manufacturing industries. All 4 mining industries saw an increase in unit labor costs.
* From 2007 to 2018, unit labor costs increased in 80 of the 86 manufacturing industries and in 3
of the 4 mining industries. Unit labor costs increased the most in the audio and video equipment
industry.
The computer and peripheral equipment industry recorded the largest productivity gain as well as the
largest unit labor cost decline during both the 1987-2018 and 1987-2007 periods. However, between
2007 and 2018, the oil and gas extraction industry posted the greatest productivity growth and the
largest unit labor cost decline.
Additional Information
Manufacturing industry output measures for 2016 and earlier years are constructed primarily using data
from the economic censuses and annual surveys of the U.S. Census Bureau together with data on price
changes primarily from BLS. These measures have been revised due to new and revised data from the
Bureau of Economic Analysis, used in part to construct intra-industry transactions. Manufacturing
industry output for 2017 and 2018 is estimated based on historical relationships between BLS sectoral
output, BLS price indexes, and data on industrial production from the Federal Reserve Board.
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* - Detailed data series: indexes of productivity and related measures; rates of change; and *
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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 worked (hourly compensation) and real output per hour worked (labor productivity). When
hourly compensation growth outpaces productivity, unit labor costs increase. Alternatively, when
productivity growth exceeds hourly compensation, unit labor costs decrease.
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. Data
from the Bureau of Economic Analysis at the U.S. Department of Commerce is used in part to construct
intra-industry transactions. Other data sources include the Energy Information Administration at the
U.S. Department of Energy and the U.S. Geological Survey at the U.S. Department of the Interior.
Manufacturing industry output for 2017 and 2018 is estimated based on historical relationships between
BLS sectoral output, BLS price indexes, and data on industrial production from the Federal Reserve Board.
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 data on self-employed and unpaid family workers 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 BLS QCEW and the economic censuses of the Census Bureau at the U.S. Department of Commerce.
Table 1. Recent labor productivity, unit labor costs, and related data
Industry
2012 NAICS code
2018 Employment (thousands)
Percent change, 2017-2018
Labor productivity
Unit labor costs
Output
Hours worked
Labor compensation
Mining
Mining
21
696.0
2.1
-1.6
11.8
9.5
10.1
Oil and gas extraction
211
145.5
12.1
-12.4
15.6
3.1
1.2
Oil and gas extraction
2111
145.5
12.1
-12.4
15.6
3.1
1.2
Mining, except oil and gas
212
196.0
-3.5
7.6
0.2
3.8
7.7
Coal mining
2121
53.1
-4.9
7.6
-2.0
3.0
5.4
Metal ore mining
2122
41.5
-11.4
17.1
-5.9
6.2
10.2
Nonmetallic mineral mining and quarrying
2123
101.4
2.3
2.2
5.7
3.3
8.0
Nondurable Manufacturing
Food
311
1,666.9
-3.1
4.1
-0.6
2.6
3.5
Animal food
3111
63.8
-2.8
2.4
2.0
4.9
4.4
Grain and oilseed milling
3112
60.1
5.3
-5.4
3.4
-1.9
-2.2
Sugar and confectionery products
3113
78.2
-7.1
8.4
-3.1
4.3
5.0
Fruit and vegetable preserving and specialty
3114
172.3
-2.8
6.1
-4.6
-1.8
1.2
Dairy products
3115
149.7
-5.7
3.8
-1.5
4.4
2.2
Animal slaughtering and processing
3116
526.1
-1.8
6.3
-0.3
1.6
6.0
Seafood product preparation and packaging
3117
37.7
-4.6
3.6
-2.7
2.0
0.8
Bakeries and tortilla products
3118
347.6
-4.4
1.8
0.7
5.3
2.5
Other food products
3119
231.4
-5.4
5.9
-1.4
4.2
4.4
Beverages and tobacco products
312
274.1
-7.2
6.6
-2.3
5.2
4.2
Beverages
3121
262.8
-6.1
6.1
-0.7
5.7
5.4
Tobacco
3122
11.3
-1.3
-4.3
-6.7
-5.5
-10.8
Textile mills
313
117.5
-3.4
-1.0
2.1
5.7
1.1
Fiber, yarn, and thread mills
3131
29.4
-1.8
-4.4
8.0
10.0
3.2
Fabric mills
3132
55.9
0.7
-0.9
1.3
0.6
0.4
Textile and fabric finishing mills
3133
32.2
-11.3
2.2
-1.4
11.1
0.8
Textile product mills
314
126.7
0.7
5.0
-3.5
-4.2
1.4
Textile furnishings mills
3141
55.1
-3.9
4.5
-4.4
-0.5
-0.1
Other textile product mills
3149
71.6
5.2
5.0
-2.2
-7.0
2.7
Apparel
315
126.2
1.5
0.4
-3.3
-4.7
-2.9
Apparel knitting mills
3151
11.2
-7.1
3.1
-6.2
1.0
-3.3
Cut and sew apparel
3152
102.5
3.2
0.5
-2.9
-5.9
-2.3
Accessories and other apparel
3159
12.5
-3.5
-3.8
-3.8
-0.3
-7.5
Leather and allied products
316
30.5
0.3
3.4
-3.5
-3.8
-0.2
Leather and hide tanning and finishing
3161
4.7
6.5
-7.9
-4.1
-9.9
-11.7
Footwear
3162
12.9
0.1
3.5
-1.1
-1.2
2.4
Other leather products
3169
12.9
-1.9
8.6
-6.2
-4.4
1.9
Paper
322
369.7
-2.5
1.7
-1.0
1.5
0.7
Pulp, paper, and paperboard mills
3221
96.2
-3.2
-2.3
-1.3
2.0
-3.6
Converted paper products
3222
273.5
-2.2
3.8
-0.9
1.3
2.9
Printing and related support activities
323
449.1
2.0
2.0
-1.5
-3.5
0.4
Printing and related support activities
3231
449.1
2.0
2.0
-1.5
-3.5
0.4
Petroleum and coal products
324
117.1
-7.8
7.7
-3.3
4.9
4.2
Petroleum and coal products
3241
117.1
-7.8
7.7
-3.3
4.9
4.2
Chemicals
325
854.7
-1.4
2.0
0.6
2.1
2.7
Basic chemicals
3251
152.8
-0.2
2.9
1.5
1.7
4.5
Resin, rubber, and artificial fibers
3252
95.6
3.5
2.9
2.0
-1.5
4.9
Agricultural chemicals
3253
36.1
2.2
-0.3
1.2
-1.0
0.9
Pharmaceuticals and medicines
3254
296.8
-3.4
2.4
-1.0
2.5
1.4
Paints, coatings, and adhesives
3255
64.8
-3.5
4.1
-1.4
2.1
2.6
Soaps, cleaning compounds, and toiletries
3256
123.4
-4.5
-0.4
2.1
7.0
1.8
Other chemical products and preparations
3259
85.2
-0.3
4.1
0.1
0.4
4.2
Plastics and rubber products
326
733.1
-3.3
7.2
-2.5
0.9
4.6
Plastics products
3261
593.8
-3.3
7.3
-2.5
0.9
4.6
Rubber products
3262
139.3
-3.4
7.1
-2.5
1.0
4.5
Durable Manufacturing
Wood products
321
438.7
-4.6
7.9
-1.3
3.4
6.5
Sawmills and wood preservation
3211
104.5
-9.5
6.8
-1.6
8.8
5.1
Plywood and engineered wood products
3212
81.4
-1.9
8.1
0.0
1.9
8.0
Other wood products
3219
252.8
-3.4
8.4
-1.7
1.7
6.5
Nonmetallic mineral products
327
424.8
-3.0
4.9
-0.5
2.6
4.4
Clay products and refractories
3271
43.0
0.9
0.4
-1.6
-2.5
-1.1
Glass and glass products
3272
87.9
-4.4
4.1
1.6
6.2
5.8
Cement and concrete products
3273
195.9
-3.2
7.2
-3.6
-0.4
3.3
Lime and gypsum products
3274
16.1
-11.8
16.1
-2.0
11.2
13.8
Other nonmetallic mineral products
3279
81.9
-2.6
1.1
5.1
7.9
6.3
Primary metals
331
379.9
-3.0
3.9
2.6
5.7
6.6
Iron and steel mills and ferroalloys
3311
83.6
-2.4
3.3
3.8
6.3
7.2
Steel products from purchased steel
3312
58.1
-4.6
4.0
3.1
8.1
7.2
Alumina and aluminum production
3313
58.1
-2.3
2.1
2.8
5.2
5.0
Other nonferrous metal production
3314
60.1
-5.4
5.5
-0.6
5.1
4.9
Foundries
3315
120.0
-2.1
5.0
2.4
4.6
7.4
Fabricated metal products
332
1,489.7
-1.4
5.2
1.0
2.4
6.2
Forging and stamping
3321
100.3
-0.5
6.0
-0.3
0.3
5.7
Cutlery and handtools
3322
38.9
-0.3
-7.0
10.3
10.7
2.6
Architectural and structural metals
3323
394.1
-1.8
7.0
1.0
2.9
8.0
Boilers, tanks, and shipping containers
3324
91.4
0.9
5.5
-1.1
-1.9
4.4
Hardware
3325
25.8
-1.7
1.6
1.6
3.4
3.2
Spring and wire products
3326
44.3
-1.1
2.6
0.2
1.3
2.8
Machine shops and threaded products
3327
371.7
-2.8
5.1
0.8
3.7
6.0
Coating, engraving, and heat treating metals
3328
140.4
0.2
2.3
4.3
4.1
6.7
Other fabricated metal products
3329
282.8
-0.7
6.1
0.0
0.7
6.1
Machinery
333
1,128.2
0.0
4.0
2.8
2.9
6.9
Agriculture, construction, and mining machinery
3331
220.0
1.0
3.2
6.5
5.5
9.9
Industrial machinery
3332
121.2
-2.5
9.7
-1.7
0.8
7.8
Commercial and service industry machinery
3333
95.4
-3.5
1.5
2.0
5.6
3.5
HVAC and commercial refrigeration equipment
3334
134.0
-0.3
2.1
-0.4
-0.2
1.6
Metalworking machinery
3335
184.3
-1.3
3.3
0.6
1.9
3.9
Turbine and power transmission equipment
3336
99.0
4.6
5.5
6.4
1.8
12.2
Other general purpose machinery
3339
274.3
-1.2
4.9
2.1
3.4
7.1
Computer and electronic products
334
1,059.7
-0.6
5.4
-0.7
-0.1
4.7
Computer and peripheral equipment
3341
156.6
7.7
-0.2
2.9
-4.4
2.7
Communications equipment
3342
85.8
-3.5
2.1
-1.8
1.8
0.3
Audio and video equipment
3343
20.5
-6.9
30.1
-2.6
4.6
26.8
Semiconductors and electronic components
3344
371.2
-1.2
5.9
-0.2
1.0
5.6
Electronic instruments
3345
411.8
-1.5
7.0
-1.4
0.1
5.5
Magnetic media manufacturing and reproducing
3346
13.8
9.1
-9.2
3.8
-4.9
-5.8
Electrical equipment and appliances
335
401.7
-1.3
4.6
-1.1
0.3
3.5
Electric lighting equipment
3351
50.3
-0.1
7.7
-5.7
-5.6
1.5
Household appliances
3352
63.1
1.6
0.7
-2.9
-4.4
-2.2
Electrical equipment
3353
142.1
-2.6
2.0
-0.4
2.3
1.6
Other electrical equipment and components
3359
146.2
-2.1
8.4
0.3
2.5
8.8
Transportation equipment
336
1,716.6
-4.7
7.5
-1.0
3.9
6.3
Motor vehicles
3361
234.0
-7.6
7.2
-0.1
8.2
7.2
Motor vehicle bodies and trailers
3362
166.9
-10.1
12.4
-3.2
7.6
8.7
Motor vehicle parts
3363
602.1
-1.2
5.4
0.2
1.5
5.6
Aerospace products and parts
3364
513.0
-8.1
10.3
-3.2
5.3
6.8
Railroad rolling stock
3365
23.2
-5.9
8.5
-1.5
4.7
6.8
Ship and boat building
3366
141.8
-1.0
6.4
-1.0
0.1
5.4
Other transportation equipment
3369
35.6
2.1
-2.7
-0.9
-3.0
-3.6
Furniture and related products
337
424.0
-2.3
4.7
-1.7
0.6
2.9
Household and institutional furniture
3371
272.7
-2.0
3.7
-0.2
1.8
3.5
Office furniture and fixtures
3372
113.9
-2.5
4.1
-1.5
1.1
2.5
Other furniture related products
3379
37.4
1.7
10.1
-8.6
-10.1
0.7
Miscellaneous manufacturing
339
658.4
-1.9
7.0
-1.5
0.4
5.4
Medical equipment and supplies
3391
324.4
-1.8
7.8
-2.3
-0.5
5.3
Other miscellaneous manufacturing
3399
334.0
-1.8
6.0
-0.5
1.3
5.5
Table 2. Long run labor productivity, unit labor costs, and related data
United States Department of Labor
