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Productivity and Costs by Industry: Manufacturing and Mining Industries News Release
For release 10:00 a.m. (EDT) Thursday, June 25, 2020 USDL-20-1276
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, 2019
Labor productivity declines were widespread among manufacturing industries in 2019, with decreases
in 54 of the 86 four-digit NAICS industries. Of the 51 industries in durable manufacturing, 31 had
productivity decreases in 2019 led by a 7.8 percent decline in the productivity of the HVAC and
commercial refrigeration equipment industry. Nondurable manufacturing also had widespread declines in
2019 with productivity falling in 23 of 35 industries, led by a 13.1-percent decline in the other leather
products industry. All four industries in the mining sector posted productivity declines in 2019 led by the
coal mining industry with a decrease of 6.6 percent.
Labor Productivity Trends in NAICS 3-Digit Industries, 2019
Manufacturing
* Labor productivity decreased in 18 of the 21 NAICS 3-digit manufacturing industries in 2019,
as output declined in 17 industries and hours worked rose in 10.
* The food industry had the largest productivity gain, 0.6 percent, as output increased and hours
decreased.
* The leather and allied products industry had the largest productivity decline, 9.8 percent, as
output fell and hours worked increased, each by 5.1 percent.
Mining
* Labor productivity declined 2.3 percent in the oil and gas extraction industry where an
increase in hours worked outpaced growth in output.
* The mining, except oil and gas industry had a productivity decline of 3.8 percent, as hours
worked increased while output declined.
Trends in Unit Labor Costs in 2019
Unit labor costs, which reflect the total labor costs required to produce a unit of output, rose in 77 of the
86 NAICS 4-digit manufacturing industries. Of the 51 industries in durable manufacturing, 45
experienced rising unit labor costs, led by the railroad rolling stock industry which increased 10.7
percent. Nondurable manufacturing also experienced widespread increases in unit labor costs with 32 of
the 35 industries recording an increase, led by the textile furnishings mills industry with a rise of 17.6
percent. Of the four industries in the mining sector, three had increases in unit labor costs led by the coal
mining industry which increased 7.0 percent.
Unit Labor Cost Trends in NAICS 3-Digit Industries, 2019
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 3.4 percent, as productivity
decreased 2.3 percent and hourly compensation decreased 5.6 percent.
* The mining, except oil and gas industry saw a 5.6-percent increase in unit labor costs, as
hourly compensation rose 1.7 percent while productivity dropped 3.8 percent.
Long-Term Trends in Labor Productivity and Unit Labor Costs
Labor Productivity
* Over the entire 1987-2019 period, labor productivity rose in 83 of the 91 manufacturing
and mining industries. Output rose in 58 industries, while hours worked increased in only
17. In the 17 industries where hours worked increased, they rose at a slow pace, 0.7 percent
per year on average.
* During the more recent 2007-19 period, which included the Great Recession of 2007-09,
productivity increased in 45 industries. These increases are predominantly the result of a
decline in hours worked rather than an increase in output, as hours worked fell in 35 of
these industries while output increased in only 18.
Unit Labor Costs
* During the 1987-2019 period, unit labor costs increased in 76 of the 86 NAICS 4-digit
manufacturing industries. All five mining industries saw an increase in unit labor costs.
* From 2007 to 2019, unit labor costs increased in 79 of the 86 manufacturing industries and in 3
of the 5 mining industries. Unit labor costs increased the most in the beverages industry.
The computer and peripheral equipment industry recorded the largest productivity gain as well as the
largest unit labor cost decline during both the 1987-2019 and 1987-2007 periods. However, between
2007 and 2019, the oil and gas extraction industry posted the greatest productivity growth and the
largest unit labor cost decline.
Additional Information
Time periods for data covered by this release precede, and are therefore not impacted by, the COVID-19
pandemic.
Manufacturing industry output measures for 2018 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 the release of the 2017
Economic Census and the 2018 Annual Survey of Manufactures. Manufacturing industry output for
2019 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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* - Additional years and long-term data *
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* 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 *
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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 2019 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
2017 NAICS code
2019 Employment (thousands)
Percent change, 2018-2019
Labor productivity
Unit labor costs
Output
Hours worked
Labor compen- sation
Hourly compen- sation
Mining
Mining
21
699.0
5.4
-1.7
8.2
2.6
6.3
3.6
Oil and gas extraction
211
151.1
-2.3
-3.4
11.0
13.6
7.3
-5.6
Oil and gas extraction
2111
151.1
-2.3
-3.4
11.0
13.6
7.3
-5.6
Mining, except oil and gas
212
194.9
-3.8
5.6
-1.7
2.1
3.8
1.7
Coal mining
2121
51.9
-6.6
7.0
-6.4
0.1
0.1
-0.1
Metal ore mining
2122
42.3
-3.2
5.7
-3.0
0.1
2.5
2.4
Nonmetallic mineral mining and quarrying
2123
100.7
-1.7
5.1
2.2
4.0
7.4
3.3
Nondurable Manufacturing
Food
311
1,684.3
0.6
2.3
0.1
-0.4
2.4
2.8
Animal food
3111
64.5
-6.3
1.6
-0.5
6.2
1.1
-4.8
Grain and oilseed milling
3112
60.7
8.1
3.2
-0.9
-8.3
2.3
11.6
Sugar and confectionery products
3113
79.2
3.8
5.4
-1.1
-4.7
4.3
9.4
Fruit and vegetable preserving and specialty
3114
175.8
0.3
5.1
-0.9
-1.2
4.2
5.5
Dairy products
3115
157.1
-6.8
5.7
-0.4
6.9
5.3
-1.5
Animal slaughtering and processing
3116
534.4
3.4
2.3
2.4
-1.0
4.7
5.8
Seafood product preparation and packaging
3117
35.5
-0.9
6.1
-0.4
0.5
5.7
5.1
Bakeries and tortilla products
3118
347.3
-0.4
1.5
-1.0
-0.6
0.5
1.1
Other food products
3119
229.8
0.8
-3.1
-0.6
-1.4
-3.7
-2.3
Beverages and tobacco products
312
289.1
-1.4
7.9
-3.5
-2.2
4.1
6.4
Beverages
3121
278.3
-1.2
7.9
-3.0
-1.8
4.6
6.6
Tobacco
3122
10.8
6.7
1.9
-4.6
-10.6
-2.8
8.8
Textile mills
313
113.5
-2.3
-0.8
-0.3
2.1
-1.1
-3.1
Fiber, yarn, and thread mills
3131
28.6
-2.4
-0.6
-3.3
-0.9
-3.9
-3.1
Fabric mills
3132
55.0
-0.3
-6.1
5.7
6.0
-0.7
-6.3
Textile and fabric finishing mills
3133
29.9
-6.9
9.6
-8.4
-1.6
0.4
2.1
Textile product mills
314
123.3
-4.3
12.5
-10.3
-6.3
0.9
7.7
Textile furnishings mills
3141
52.9
-7.1
17.6
-14.1
-7.5
1.0
9.2
Other textile product mills
3149
70.4
0.3
6.1
-4.9
-5.2
0.9
6.4
Apparel
315
124.1
-0.7
6.8
-6.9
-6.3
-0.6
6.1
Apparel knitting mills
3151
10.3
0.4
4.0
-7.8
-8.2
-4.1
4.4
Cut and sew apparel
3152
100.4
0.1
6.3
-7.1
-7.2
-1.2
6.4
Accessories and other apparel
3159
13.4
-6.9
13.1
-4.6
2.5
7.9
5.2
Leather and allied products
316
32.4
-9.8
7.5
-5.1
5.1
1.9
-3.0
Leather and hide tanning and finishing
3161
5.0
-12.9
9.8
-7.7
6.0
1.4
-4.3
Footwear
3162
13.4
-4.8
7.0
-2.5
2.4
4.3
1.9
Other leather products
3169
14.0
-13.1
6.0
-6.2
7.9
-0.6
-7.9
Paper
322
366.0
0.0
5.0
-2.8
-2.8
2.0
5.0
Pulp, paper, and paperboard mills
3221
96.8
-5.7
5.0
-3.6
2.3
1.2
-1.0
Converted paper products
3222
269.2
2.4
5.1
-2.5
-4.8
2.4
7.6
Printing and related support activities
323
445.7
-2.6
4.4
-4.1
-1.5
0.1
1.7
Printing and related support activities
3231
445.7
-2.6
4.4
-4.1
-1.5
0.1
1.7
Petroleum and coal products
324
115.2
-4.2
4.7
-1.2
3.2
3.4
0.2
Petroleum and coal products
3241
115.2
-4.2
4.7
-1.2
3.2
3.4
0.2
Chemicals
325
864.2
-3.4
7.2
-1.4
2.1
5.8
3.6
Basic chemicals
3251
153.8
-4.1
6.5
-2.5
1.7
3.9
2.1
Resin, rubber, and artificial fibers
3252
96.3
-0.1
4.4
-0.8
-0.6
3.6
4.3
Agricultural chemicals
3253
36.6
-2.8
5.3
-1.4
1.4
3.8
2.4
Pharmaceuticals and medicines
3254
309.7
-6.7
9.1
-1.1
5.9
7.8
1.8
Paints, coatings, and adhesives
3255
65.4
-2.9
5.9
-0.8
2.2
5.1
2.8
Soaps, cleaning compounds, and toiletries
3256
116.2
2.4
9.0
-1.6
-4.0
7.2
11.6
Other chemical products and preparations
3259
86.2
-0.7
0.5
1.0
1.7
1.5
-0.2
Plastics and rubber products
326
741.6
-1.9
4.7
-2.6
-0.7
1.9
2.7
Plastics products
3261
602.8
-2.6
4.5
-2.4
0.1
2.0
1.9
Rubber products
3262
138.8
0.9
5.2
-3.4
-4.2
1.7
6.2
Durable Manufacturing
Wood products
321
445.1
-3.5
5.1
-1.5
2.1
3.5
1.4
Sawmills and wood preservation
3211
106.3
-4.0
1.7
-0.1
4.1
1.6
-2.4
Plywood and engineered wood products
3212
83.0
-5.0
7.0
-1.9
3.2
5.0
1.7
Other wood products
3219
255.8
-3.1
6.1
-2.3
0.8
3.7
2.8
Nonmetallic mineral products
327
435.9
-1.0
2.7
-0.5
0.5
2.2
1.7
Clay products and refractories
3271
45.6
-2.8
-6.1
6.0
9.1
-0.4
-8.7
Glass and glass products
3272
87.4
2.0
5.4
-4.0
-5.9
1.2
7.6
Cement and concrete products
3273
203.9
-1.0
1.7
1.7
2.8
3.5
0.7
Lime and gypsum products
3274
16.6
-1.3
6.6
-1.9
-0.6
4.6
5.3
Other nonmetallic mineral products
3279
82.4
-1.2
4.3
-3.5
-2.3
0.7
3.1
Primary metals
331
385.2
-0.8
5.9
-1.9
-1.1
3.9
5.0
Iron and steel mills and ferroalloys
3311
86.4
-1.1
6.4
-1.1
0.0
5.2
5.2
Steel products from purchased steel
3312
57.7
2.1
3.2
-1.1
-3.1
2.2
5.4
Alumina and aluminum production
3313
59.9
0.4
7.0
-0.9
-1.3
6.1
7.5
Other nonferrous metal production
3314
62.0
-3.6
9.2
-4.5
-0.8
4.3
5.2
Foundries
3315
119.2
-2.0
5.0
-2.8
-0.8
2.0
2.9
Fabricated metal products
332
1,513.3
-0.1
3.4
0.0
0.1
3.4
3.3
Forging and stamping
3321
101.1
-1.4
5.9
-3.0
-1.6
2.7
4.4
Cutlery and handtools
3322
38.1
0.9
6.2
-4.7
-5.6
1.2
7.2
Architectural and structural metals
3323
401.9
0.5
1.6
2.1
1.6
3.8
2.1
Boilers, tanks, and shipping containers
3324
96.3
-0.6
4.3
0.6
1.2
5.0
3.7
Hardware
3325
25.9
1.5
3.4
-2.5
-4.0
0.8
5.0
Spring and wire products
3326
44.5
0.5
3.6
-2.1
-2.6
1.4
4.1
Machine shops and threaded products
3327
375.1
-1.7
5.2
-2.2
-0.6
2.9
3.5
Coating, engraving, and heat treating metals
3328
142.0
-0.4
1.8
1.8
2.3
3.6
1.4
Other fabricated metal products
3329
288.4
1.3
3.0
1.0
-0.2
4.1
4.3
Machinery
333
1,135.7
-1.2
3.4
-1.1
0.1
2.2
2.1
Agriculture, construction, and mining machinery
3331
221.7
3.1
0.9
1.9
-1.2
2.8
4.0
Industrial machinery
3332
119.2
-2.9
4.1
-5.0
-2.2
-1.1
1.1
Commercial and service industry machinery
3333
94.7
-1.9
6.4
-1.8
0.1
4.5
4.4
HVAC and commercial refrigeration equipment
3334
138.3
-7.8
9.3
-4.1
4.0
4.8
0.7
Metalworking machinery
3335
184.6
-2.2
1.7
-2.0
0.2
-0.3
-0.5
Turbine and power transmission equipment
3336
99.8
1.2
-2.1
1.9
0.7
-0.2
-0.9
Other general purpose machinery
3339
277.4
-2.1
6.5
-2.0
0.1
4.3
4.2
Computer and electronic products
334
1,088.5
-0.8
1.8
1.3
2.1
3.1
1.0
Computer and peripheral equipment
3341
163.8
-7.7
6.0
-1.5
6.8
4.4
-2.2
Communications equipment
3342
83.6
6.9
-0.5
4.1
-2.6
3.6
6.4
Audio and video equipment
3343
21.1
30.5
-24.5
36.3
4.4
2.9
-1.5
Semiconductors and electronic components
3344
379.6
-0.1
0.9
-0.2
0.0
0.7
0.8
Electronic instruments
3345
427.9
-2.3
3.9
1.0
3.4
5.0
1.5
Magnetic media manufacturing and reproducing
3346
12.5
32.1
-25.4
21.6
-8.0
-9.3
-1.4
Electrical equipment and appliances
335
409.0
0.2
6.2
-1.5
-1.8
4.5
6.4
Electric lighting equipment
3351
46.7
7.1
2.0
-4.6
-10.9
-2.6
9.3
Household appliances
3352
63.0
2.0
7.2
-4.7
-6.6
2.2
9.3
Electrical equipment
3353
148.1
0.6
5.7
0.7
0.1
6.5
6.4
Other electrical equipment and components
3359
151.2
-2.3
6.9
-1.1
1.2
5.7
4.5
Transportation equipment
336
1,742.8
-1.5
5.7
-2.2
-0.7
3.4
4.1
Motor vehicles
3361
237.5
-2.1
4.0
-1.7
0.4
2.2
1.8
Motor vehicle bodies and trailers
3362
167.0
-5.4
5.9
-8.5
-3.3
-3.2
0.1
Motor vehicle parts
3363
599.3
-0.6
4.9
-4.7
-4.1
-0.1
4.2
Aerospace products and parts
3364
534.9
-2.2
6.8
0.2
2.4
6.9
4.4
Railroad rolling stock
3365
24.3
4.2
10.7
-1.9
-5.9
8.6
15.3
Ship and boat building
3366
142.7
-6.7
5.1
-0.8
6.4
4.3
-2.0
Other transportation equipment
3369
37.1
0.4
9.7
-3.2
-3.6
6.1
10.1
Furniture and related products
337
410.1
-0.3
2.3
-1.9
-1.6
0.3
2.0
Household and institutional furniture
3371
260.6
3.0
-0.6
-0.4
-3.3
-1.0
2.4
Office furniture and fixtures
3372
114.6
-4.1
4.5
-1.3
2.9
3.2
0.2
Other furniture related products
3379
34.9
-7.2
9.4
-9.8
-2.9
-1.3
1.6
Miscellaneous manufacturing
339
677.8
-0.5
3.8
0.5
1.0
4.3
3.3
Medical equipment and supplies
3391
332.5
0.9
3.7
1.8
0.9
5.6
4.7
Other miscellaneous manufacturing
3399
345.3
-2.4
3.8
-1.3
1.1
2.4
1.3
Table 2. Long run labor productivity, unit labor costs, and related data
United States Department of Labor
