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Economic News Release
PRINT:Print

Productivity and Costs News Release



Transmission of material in this release is embargoed until                                 USDL 24-0147
8:30 a.m. (ET) Thursday, February 1, 2024

Technical information: (202) 691-5606 • Productivity@bls.gov • www.bls.gov/productivity
Media contact:         (202) 691-5902 • PressOffice@bls.gov

                                     PRODUCTIVITY AND COSTS
                      Fourth Quarter and Annual Averages 2023, Preliminary

Nonfarm business sector labor productivity increased 3.2 percent in the fourth quarter of 2023, the 
U.S. Bureau of Labor Statistics reported today, as output increased 3.7 percent and hours worked 
increased 0.4 percent. (All quarterly percent changes in this release are seasonally adjusted annual rates.) 
From the same quarter a year ago, nonfarm business sector labor productivity increased 2.7 percent. (See 
table A1.) Annual average productivity increased 1.2 percent from 2022 to 2023. (See table C1.) 

Unit labor costs in the nonfarm business sector increased 0.5 percent in the fourth quarter of 2023, 
reflecting a 3.7-percent increase in hourly compensation and a 3.2-percent increase in productivity. Unit 
labor costs increased 2.3 percent over the last four quarters. (See tables A1 and 2.) 

BLS calculates unit labor costs as the ratio of hourly compensation to labor productivity. Increases in 
hourly compensation tend to increase unit labor costs and increases in productivity tend to reduce them. 
Real hourly compensation, which takes into account consumer prices, increased 0.9 percent in the fourth 
quarter of 2023, and increased 1.8 percent over the last four quarters.

Labor productivity, or output per hour, is calculated by dividing an index of real output by an index of 
hours worked by all workers, including employees, proprietors, and unpaid family workers. During the 
current business cycle, starting in the fourth quarter of 2019, labor productivity has grown at an annual 
rate of 1.6 percent, as output grew at a 2.2-percent per year rate, outpacing hours worked, which grew at 
a 0.7-percent annual rate. The 1.6-percent annual rate of productivity growth in the current business 
cycle thus far is just 0.1-percentage point above the previous business cycle rate from the fourth quarter 
of 2007 through fourth-quarter 2019, and is below the long-term rate since the first quarter of 1947 (2.1 
percent).

Manufacturing sector labor productivity increased 2.3 percent in the fourth quarter of 2023, as output 
decreased 2.4 percent and hours worked decreased 4.6 percent. The 4.6-percent decrease in hours 
worked is the largest decline since the historic decline in the second quarter of 2020. In the durable 
manufacturing sector, productivity increased 1.4 percent, reflecting a 4.4-percent decrease in output and 
a 5.7-percent decrease in hours worked. Nondurable manufacturing sector productivity increased 2.5 
percent, as output decreased 0.3 percent and hours worked decreased 2.7 percent. Total manufacturing 
sector productivity increased 0.7 percent from the same quarter a year ago. (See tables A1, 3, 4, and 5.)

Unit labor costs in the total manufacturing sector increased 4.2 percent in the fourth quarter of 2023, 
reflecting a 6.6-percent increase in hourly compensation and a 2.3-percent increase in productivity. 
Manufacturing unit labor costs increased 5.4 percent from the same quarter a year ago. (See tables A1 
and 3.)

Manufacturing sector labor productivity has increased at an annual rate of 0.2 percent during the current 
business cycle, which began in the fourth quarter of 2019. This rate reflects a 0.1-percent growth rate for 
output and a 0.2-percent rate of decline for hours worked. This slow productivity growth rate follows the 
0.0-percent annual rate of growth during the last business cycle that spanned the fourth quarter of 2007 
through fourth-quarter 2019, and is below the long-term rate since the first quarter of 1987 of 2.1 
percent.

The concepts, sources, and methods used for the manufacturing output series differ from those used in 
the business and nonfarm business output series; these output measures are not directly comparable. See 
the Technical Notes for a more detailed explanation.  

Revised measures

Revised and previously published measures for the third quarter of 2023 are shown in tables A2 and 
B1 and cover the following major sectors: nonfarm business, business, manufacturing, and nonfinancial 
corporations.

In the third quarter of 2023, nonfarm business productivity was revised down 0.3 percentage point, to an 
increase of 4.9 percent, due to a 0.3-percentage point downward revision to output. (See table B1.) Unit 
labor costs decreased 1.1 percent in the third quarter, rather than decreasing 1.2 percent as previously 
reported.

In the manufacturing sector, productivity declined 0.8 percent in the third quarter of 2023 as 
previously reported. Unit labor costs were revised upwards 0.1 percentage point to an increase of 6.3 
percent. 

As for the nonfinancial corporate sector, productivity was revised up 0.3 percentage point in the third 
quarter of 2023 to an increase of 2.5 percent. This revision reflects a 0.2-percentage point upward 
revision to output to an increase of 3.3 percent. Hours worked were unrevised. (See table A2.)

Annual averages

Table C1 presents annual average changes for the most recent 5 years for the nonfarm business sector 
and the total manufacturing sector. Nonfarm business sector productivity increased 1.2 percent in 
2023, as output increased 2.6 percent and hours worked increased 1.3 percent.

Unit labor costs in the nonfarm business sector increased 2.9 percent in 2023, reflecting an increase of 
4.2 percent in hourly compensation and an increase of 1.2 percent in productivity. Real hourly 
compensation, which takes into account changes in consumer prices, increased 0.1 percent in 2023. 

In the manufacturing sector, productivity decreased 0.8 percent in 2023, reflecting a decrease in output 
of 0.5 percent and an increase in hours of 0.3 percent.

Manufacturing unit labor costs increased 5.5 percent in 2023, as hourly compensation increased 4.7 
percent while productivity decreased 0.8 percent. Manufacturing real hourly compensation increased 0.5 
percent.

Quarterly and annual data for all sectors from 2021 forward appear in tables 1-6. Full historical 
measures can be found on the Productivity and Costs home page: www.bls.gov/productivity/tables/.
______________
The revised Productivity and Costs news release for fourth-quarter and annual averages 2023 is 
scheduled to be released on Thursday, March 7, 2024, at 8:30 a.m. (ET). 



=========================================================================================================================
                                                Upcoming Revisions
                                                
Data in this release do not reflect the annual benchmark revision of the BLS Current Employment 
Statistics program data to be released February 2, 2024. This benchmark will be incorporated in the next 
release on March 7, 2024.
=========================================================================================================================


=========================================================================================================================
                                                Upcoming Method Change

Beginning with the Productivity and Costs news release scheduled for March 7, 2024, estimates of hours 
worked by self-employed workers and unpaid family workers will reflect a method change to reduce 
volatility of the estimates. Self-employed and unpaid family workers accounted for 7.4 percent of hours 
worked in the nonfarm business sector in 2022. The method change will remove statistically insignificant 
variability during seasonal adjustment of the Current Population Survey (CPS) source data. In addition, 
volatility associated with respondent turnover will be reduced by adjusting respondent weights. These two 
adjustments by the BLS productivity program will dampen noise in the series without losing important 
information about cyclical changes in hours worked by self-employed and unpaid family workers. A more 
detailed discussion of the upcoming changes is available in the Monthly Labor Review at 
www.bls.gov/opub/mlr/2023/article/an-improved-estimate-of-self-employment-hours.htm.
=========================================================================================================================




=========================================================================================================================
Table A1. Labor productivity growth and related measures - preliminary fourth-quarter 2023
(percent change from previous quarter at annual rate and from same quarter a year ago)

                                                Labor                   Hours    Hourly         Real hourly    Unit labor
Sector                  Percent change from:    productivity   Output   worked   compensation   compensation   costs
-------------------------------------------------------------------------------------------------------------------------
Nonfarm business        Previous quarter            3.2          3.7      0.4        3.7            0.9           0.5
                        A year ago                  2.7          3.3      0.6        5.0            1.8           2.3
                        
Business                Previous quarter            3.3          3.5      0.2        4.0            1.2           0.6
                        A year ago                  2.7          3.3      0.6        5.0            1.8           2.2
                        
Manufacturing           Previous quarter            2.3         -2.4     -4.6        6.6            3.8           4.2
                        A Year ago                  0.7         -0.5     -1.2        6.2            2.9           5.4

 Durable                Previous quarter            1.4         -4.4     -5.7        9.0            6.0           7.4
 manufacturing          A year ago                  0.0         -0.3     -0.3        6.4            3.1           6.4

 Nondurable             Previous quarter            2.5         -0.3     -2.7        2.5           -0.2           0.0
 manufacturing          A year ago                  2.0         -0.7     -2.7        5.5            2.2           3.4
=========================================================================================================================


=========================================================================================================================
Table A2. Labor productivity growth and related measures - revised and previously published third-quarter 2023
(percent change from previous quarter at annual rate)


                                                Labor                   Hours    Hourly         Real hourly    Unit labor
Sector                                          productivity   Output   worked   compensation   compensation   costs
-------------------------------------------------------------------------------------------------------------------------       
Nonfinancial             Revised                    2.5          3.3      0.8        3.7            0.1           1.2
corporate          Previously published             2.2          3.1      0.8        3.9            0.3           1.7
=========================================================================================================================


=========================================================================================================================
Table B1. Labor productivity growth and related measures – revised and previously published third-quarter 2023
(percent change from previous quarter at annual rate) 


                                                Labor                   Hours    Hourly         Real hourly    Unit labor
Sector                                          productivity   Output   worked   compensation   compensation   costs
-------------------------------------------------------------------------------------------------------------------------
Nonfarm business        Revised                     4.9          5.8      0.9        3.8            0.2          -1.1
                   Previously published             5.2          6.1      0.9        3.9            0.3          -1.2
                        
Business                Revised                     4.8          5.6      0.7        3.9            0.3          -0.9
                   Previously published             5.2          6.0      0.8        4.0            0.4          -1.2
                        
Manufacturing           Revised                    -0.8         -0.3      0.5        5.5            1.8           6.3
                   Previously published            -0.8         -0.3      0.5        5.4            1.8           6.2
                                                                                                               
 Durable                Revised                    -2.0          1.4      3.4        3.5           -0.1           5.6
 manufacturing     Previously published            -1.8          1.6      3.4        3.4           -0.2           5.3
                        
 Nondurable             Revised                     2.6         -1.9     -4.4        8.7            5.0           6.0
 manufacturing     Previously published             2.3         -2.1     -4.2        8.8            5.0           6.4
=========================================================================================================================


=========================================================================================================================
Table C1. Labor productivity growth and related measures - annual average changes: 2019-2023


                                                Labor                   Hours    Hourly         Real hourly    Unit labor
Sector                  Year                    productivity   Output   worked   compensation   compensation   costs
-------------------------------------------------------------------------------------------------------------------------
Nonfarm business        2023                        1.2          2.6      1.3        4.2            0.1           2.9
                        2022                       -1.9          2.1      4.0        3.7           -4.1           5.6
                        2021                        1.7          7.2      5.5        4.9            0.0           3.1
                        2020                        5.2         -2.8     -7.6        8.2            6.7           2.9
                        2019                        2.3          3.0      0.7        3.9            2.1           1.6
                        
Manufacturing           2023                       -0.8         -0.5      0.3        4.7            0.5           5.5
                        2022                       -1.3          2.8      4.2        3.5           -4.3           4.8
                        2021                        1.7          4.9      3.2        2.3           -2.4           0.6
                        2020                        0.6         -6.9     -7.4        6.8            5.4           6.2
                        2019                       -2.2         -2.0      0.2        2.5            0.7           4.8
=========================================================================================================================



					TECHNICAL NOTES


Labor Hours

Hours worked data for the labor productivity and cost measures include hours worked for all 
persons working in the sector—wage and salary workers, the self-employed and unpaid family 
workers. The primary source of hours and employment data is the BLS Current Employment 
Statistics (CES) program, which provides monthly survey data on the number of jobs held by and 
hours paid to wage and salary workers in nonfarm establishments, counting a person who is 
employed by two or more establishments at each place of employment. As of the February 3, 
2023 Employment Situation release, the CES program has updated the national nonfarm payroll 
series to the 2022 North American Industry Classification System (NAICS). The BLS Major 
Sector Productivity program will be remaining on a NAICS 2017 basis for the time being by 
converting NAICS 2022 data from CES back to a NAICS 2017 basis using ratios published on 
the CES website and based on the Quarterly Census of Employment and Wages (QCEW). Hours 
of paid time off are removed from hours paid using data from the National Compensation Survey 
(NCS) for 1996 forward and data from the BLS Hours at Work survey, conducted for this 
purpose, prior to 1990. Between 1990 and 1995, hours of paid time off are removed using a 
combination of NCS and Hours at Work survey data. Off-the-clock hours are added, yielding 
hours worked, using data from the Current Population Survey (CPS). 

Data from the CPS are used to estimate hours worked for farm labor, nonfarm proprietors, and 
nonfarm unpaid family workers. Using CPS information on employment and hours worked at 
primary jobs and all other jobs, separately, the BLS productivity measures assign all hours 
worked to the appropriate industrial sector. Hours for government enterprises are derived from 
the CPS, the CES, and the National Income and Product Accounts (NIPA) prepared by the 
Bureau of Economic Analysis (BEA) of the Department of Commerce. 

Detailed hours data are presented in the table “Hours Worked in Total U.S. Economy and 
Subsectors” on the BLS website (www.bls.gov/productivity/tables/total-economy-hours-
employment.xlsx).

Output

Business sector output is a chain-type, current-weighted index constructed after excluding from 
gross domestic product (GDP) the following outputs: general government, nonprofit institutions, 
and households (including owner-occupied housing). Corresponding exclusions also are made in 
labor hours worked. Business output accounted for about 77 percent of the value of GDP in 
2023. Nonfarm business, which excludes farming, accounted for about 76 percent of GDP in 
2023.

Annual indexes for manufacturing and its durable and nondurable goods components are 
constructed by deflating current-dollar industry value of production data from the U.S. Bureau of 
the Census with deflators from the BLS. These deflators are based on data from the BLS 
Producer Price Index program and other sources. The industry shipments are aggregated using 
annual weights, and intrasectoral transactions are removed. Quarterly manufacturing output 
measures are based on the indexes of industrial production prepared monthly by the Board of 
Governors of the Federal Reserve System, adjusted to be consistent with annual indexes of 
manufacturing sector output prepared by BLS. 

Nonfinancial corporate output is a chain-type, current-weighted index calculated on the basis of 
the costs incurred and the incomes earned from production. The output measure excludes the 
following outputs from GDP: general government; nonprofit institutions; households; 
unincorporated business; and those corporations classified as offices of bank holding companies, 
offices of other holding companies, or offices in the finance and insurance sector. Nonfinancial 
corporations accounted for about 52 percent of the value of GDP in 2022.


Labor Productivity

The measure describes the relationship between real output and the labor time involved in its 
production. Measures of labor productivity growth show the changes from period to period in the 
amount of goods and services produced per hour worked. They reflect the joint effects of many 
influences, including changes in technology; capital investment; level of output; utilization of 
capacity, energy, and materials; the organization of production; managerial skill; and the 
characteristics and effort of the work force.

Labor Compensation

The measure includes accrued wages and salaries, supplements, employer contributions to 
employee benefit plans, and taxes. Estimates of labor compensation by major sector, required for 
measures of hourly compensation and unit labor costs, are based primarily on employee 
compensation data from the NIPA, prepared by the BEA. The compensation of employees in 
general government, nonprofit institutions and households are subtracted from compensation of 
employees in domestic industries to derive employee compensation for the business sector. The 
labor compensation of proprietors cannot be explicitly identified and must be estimated. This is 
done by assuming that proprietors have the same hourly compensation as employees in the same 
sector. The quarterly labor productivity and cost measures do not contain estimates of 
compensation for unpaid family workers.  
      
Unit Labor Costs

These measures describe the relationship between compensation per hour and labor productivity, 
or real output per hour, and can be used as an indicator of inflationary pressure on producers. 
Increases in hourly compensation increase unit labor costs; labor productivity increases offset 
compensation increases and lower unit labor costs. 

Presentation of the data

The quarterly data in this release are presented in three ways: as percent changes from the 
previous quarter presented at a compound annual rate, as percent changes from the 
corresponding quarter of the previous year, and as index number series where 2017=100. Annual 
data are presented both as index number series and percent changes from the previous year.  

The index numbers and rates of change reported in the productivity and costs news release are 
rounded to one decimal place. All percent changes in this release and on the BLS web site are 
calculated using index numbers to three decimal places. A complete historical series of these 
index numbers are available at the BLS web site, www.bls.gov/data/home.htm, or by contacting 
the BLS Division of Major Sector Productivity (Telephone 202-691-5606 or email 
productivity@bls.gov).

For a more detailed explanation of methodology see the Handbook of Methods at 
www.bls.gov/opub/hom/msp/home.htm.

If you are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access 
telecommunications relay services.



Table 1. Business sector: Labor productivity, hourly compensation, unit labor costs, and prices,
seasonally adjusted.
                                                                                           Value-
                                                          Real                             added
                                               Hourly     hourly                Unit       output
Year          Labor                            compen-    compen-     Unit      nonlabor   price
and           produc-               Hours      sation     sation      labor     payments   deflator
quarter       tivity     Output     worked     (1)        (2)         costs     (3)        (4)
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate (5)

2023 ANNUAL    1.3         2.6        1.3        4.2        0.1        2.9        3.6        3.2  

2023 IV        3.3         3.5        0.2        4.0        1.2        0.6        0.9        0.7  
     III       4.8 r       5.6 r      0.7 r      3.9 r      0.3 r     -0.9 r      7.8 r      2.8 r
     II        3.4         2.0       -1.4        5.8        3.1        2.4       -0.6        1.1  
     I        -0.6         2.1        2.7        6.5        2.7        7.1       -1.3        3.3  

2022 ANNUAL   -1.8         1.9        3.8        3.8       -4.0        5.7       10.5        7.8  

2022 IV        2.0         2.9        0.9       -0.1       -4.1       -2.0       10.9        3.5  
     III       0.2         2.7        2.5        6.9        1.3        6.7        0.7        4.0  
     II       -3.4        -1.3        2.1        1.9       -7.2        5.4       17.2       10.5  
     I        -6.7        -3.0        4.0        0.9       -7.7        8.2       11.4        9.6  

2021 ANNUAL    1.8         7.2        5.3        4.9        0.1        3.1        7.9        5.1  

2021 IV        2.8         8.8        5.8        6.1       -2.4        3.2       14.5        8.0  
     III      -2.0         3.3        5.4        6.1       -0.5        8.3        4.3        6.6  
     II        1.1         7.2        6.0        7.3       -0.6        6.2        8.7        7.3  
     I         1.9         6.7        4.6       -0.3       -4.5       -2.2       19.9        6.6  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2023 ANNUAL    1.3         2.6        1.3        4.2        0.1        2.9        3.6        3.2  

2023 IV        2.7         3.3        0.6        5.0        1.8        2.2        1.6        2.0  
     III       2.4 r       3.1 r      0.7        4.0        0.4 r      1.6 r      4.1 r      2.7  
     II        1.2         2.4        1.2        4.8        0.7        3.5        2.3        3.0  
     I        -0.5         1.6        2.0        3.8       -1.9        4.2        6.6        5.3  

2022 ANNUAL   -1.8         1.9        3.8        3.8       -4.0        5.7       10.5        7.8  

2022 IV       -2.0         0.3        2.4        2.4       -4.5        4.5        9.9        6.9  
     III      -1.8         1.7        3.6        3.9       -4.1        5.9       10.8        8.0  
     II       -2.4         1.8        4.3        3.7       -4.5        6.3       11.8        8.6  
     I        -1.3         4.0        5.3        5.1       -2.8        6.5        9.7        7.8  

2021 ANNUAL    1.8         7.2        5.3        4.9        0.1        3.1        7.9        5.1  

2021 IV        0.9         6.5        5.5        4.8       -2.0        3.8       11.7        7.1  
     III      -0.8         5.6        6.4        5.6        0.2        6.4        4.9        5.8  
     II        1.4        15.2       13.6        2.7       -2.1        1.3       11.1        5.3  
     I         5.7         2.5       -3.1        6.5        4.4        0.8        4.2        2.2  
---------------------------------------------------------------------------------------------------
                                         Indexes 2017=100

2023 ANNUAL  110.3       116.0      105.2      131.8      105.7      119.5      123.9      121.4  

2023 IV      111.9       117.7      105.2      133.9      106.2      119.7      125.2      122.1  
     III     111.0 r     116.7 r    105.1 r    132.6 r    105.9 r    119.5 r    124.9 r    121.9 r
     II      109.7       115.1      104.9      131.4      105.8      119.8      122.6      121.0  
     I       108.8       114.6      105.3      129.5      105.0      119.1      122.8      120.7  

2022 ANNUAL  108.8       113.1      103.9      126.4      105.6      116.2      119.6      117.6  

2022 IV      108.9       114.0      104.6      127.5      104.4      117.0      123.2      119.7  
     III     108.4       113.2      104.4      127.5      105.5      117.6      120.1      118.7  
     II      108.4       112.4      103.7      125.4      105.1      115.7      119.8      117.5  
     I       109.3       112.8      103.2      124.8      107.1      114.2      115.2      114.6  

2021 ANNUAL  110.9       110.9      100.0      121.8      109.9      109.8      108.2      109.1  

2021 IV      111.2       113.6      102.2      124.5      109.3      112.0      112.1      112.0  
     III     110.4       111.3      100.7      122.7      109.9      111.1      108.4      109.9  
     II      111.0       110.4       99.4      120.9      110.1      108.9      107.2      108.2  
     I       110.7       108.5       98.0      118.8      110.2      107.3      105.0      106.3  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   February 1, 2024
r=revised                                                        Source: Bureau of Labor Statistics



Table 2. Nonfarm business sector: Labor productivity, hourly compensation, unit labor costs, and
prices, seasonally adjusted.
                                                                                           Value-
                                                          Real                             added
                                               Hourly     hourly                Unit       output
Year          Labor                            compen-    compen-     Unit      nonlabor   price
and           produc-               Hours      sation     sation      labor     payments   deflator
quarter       tivity     Output     worked     (1)        (2)         costs     (3)        (4)
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate (5)

2023 ANNUAL    1.2         2.6        1.3        4.2        0.1        2.9        4.0        3.4  

2023 IV        3.2         3.7        0.4        3.7        0.9        0.5        1.3        0.9  
     III       4.9 r       5.8 r      0.9        3.8 r      0.2 r     -1.1 r      8.3 r      3.0 r
     II        3.6         2.0       -1.5        6.2        3.4        2.6       -0.1        1.4  
     I        -0.8         1.8        2.6        6.5        2.7        7.4       -0.3        3.9  

2022 ANNUAL   -1.9         2.1        4.0        3.7       -4.1        5.6       10.1        7.5  

2022 IV        1.6         2.8        1.3       -0.5       -4.5       -2.0       11.0        3.5  
     III       0.4         2.8        2.4        7.1        1.4        6.6        0.6        3.9  
     II       -3.6        -1.1        2.6        1.5       -7.6        5.3       16.1        9.9  
     I        -6.3        -2.8        3.7        1.1       -7.5        8.0       10.3        9.0  

2021 ANNUAL    1.7         7.2        5.5        4.9        0.0        3.1        7.2        4.8  

2021 IV        2.8         8.9        5.9        6.0       -2.6        3.1       15.8        8.4  
     III      -2.4         3.4        5.9        5.6       -0.9        8.2        4.2        6.4  
     II        0.8         7.3        6.4        7.0       -0.8        6.1        6.5        6.3  
     I         1.6         6.5        4.9       -0.4       -4.6       -2.0       19.3        6.5  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2023 ANNUAL    1.2         2.6        1.3        4.2        0.1        2.9        4.0        3.4  

2023 IV        2.7         3.3        0.6        5.0        1.8        2.3        2.2        2.3  
     III       2.3 r       3.1 r      0.8        4.0        0.4        1.7 r      4.6 r      2.9 r
     II        1.2         2.4        1.2        4.8        0.7        3.6        2.7        3.2  
     I        -0.6         1.6        2.2        3.6       -2.1        4.2        6.6        5.3  

2022 ANNUAL   -1.9         2.1        4.0        3.7       -4.1        5.6       10.1        7.5  

2022 IV       -2.0         0.4        2.5        2.3       -4.6        4.4        9.4        6.5  
     III      -1.7         1.8        3.6        3.9       -4.1        5.7       10.5        7.8  
     II       -2.4         2.0        4.5        3.5       -4.7        6.1       11.5        8.4  
     I        -1.3         4.1        5.5        4.9       -3.0        6.3        9.1        7.5  

2021 ANNUAL    1.7         7.2        5.5        4.9        0.0        3.1        7.2        4.8  

2021 IV        0.7         6.5        5.8        4.5       -2.2        3.8       11.3        6.9  
     III      -0.8         5.7        6.5        5.6        0.2        6.5        3.9        5.4  
     II        1.1        15.1       13.8        2.5       -2.3        1.4        9.8        4.8  
     I         5.8         2.4       -3.2        6.6        4.5        0.8        4.1        2.2  
---------------------------------------------------------------------------------------------------
                                         Indexes 2017=100

2023 ANNUAL  110.2       116.2      105.5      131.5      105.5      119.4      123.5      121.2  

2023 IV      111.8       117.9      105.5      133.6      106.0      119.6      125.0      121.9  
     III     110.9 r     116.9 r    105.4 r    132.4 r    105.7 r    119.4 r    124.5 r    121.6 r
     II      109.6       115.3      105.2      131.2      105.7      119.7      122.1      120.8  
     I       108.6       114.7      105.6      129.2      104.8      119.0      122.1      120.3  

2022 ANNUAL  108.8       113.3      104.1      126.3      105.4      116.0      118.7      117.2  

2022 IV      108.8       114.2      104.9      127.2      104.1      116.9      122.2      119.2  
     III     108.4       113.4      104.6      127.4      105.3      117.5      119.1      118.2  
     II      108.3       112.6      104.0      125.2      105.0      115.6      118.9      117.0  
     I       109.3       112.9      103.3      124.8      107.0      114.1      114.5      114.3  

2021 ANNUAL  110.9       111.0      100.1      121.8      109.9      109.9      107.8      109.0  

2021 IV      111.1       113.7      102.4      124.4      109.1      112.0      111.8      111.9  
     III     110.3       111.4      100.9      122.6      109.9      111.1      107.7      109.6  
     II      111.0       110.4       99.5      120.9      110.1      109.0      106.6      107.9  
     I       110.8       108.5       98.0      118.9      110.4      107.3      105.0      106.3  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   February 1, 2024
r=revised                                                        Source: Bureau of Labor Statistics



Table 3. Manufacturing sector: Labor productivity, hourly compensation, and unit labor costs,
seasonally adjusted.
                                                                             Real
Year              Labor                                       Hourly         hourly          Unit
and               produc-                      Hours          compensa-      compensa-       labor
quarter           tivity        Output         worked         tion (1)       tion (2)        costs
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate (5)

2023 ANNUAL       -0.8           -0.5            0.3            4.7            0.5            5.5  

2023 IV            2.3           -2.4           -4.6            6.6            3.8            4.2  
     III          -0.8           -0.3            0.5            5.5 r          1.8            6.3 r
     II            3.3            1.1           -2.1            8.1            5.2            4.7  
     I            -1.9           -0.4            1.5            4.5            0.8            6.6  

2022 ANNUAL       -1.3            2.8            4.2            3.5           -4.3            4.8  

2022 IV           -3.2           -3.6           -0.5           -0.1           -4.1            3.2  
     III          -2.8            0.4            3.3            7.7            2.0           10.8  
     II            2.2            3.0            0.7            3.2           -6.0            1.0  
     I            -3.9            3.1            7.3            0.7           -7.9            4.7  

2021 ANNUAL        1.7            4.9            3.2            2.3           -2.4            0.6  

2021 IV           -2.2            4.8            7.2            8.0           -0.7           10.4  
     III          -1.9            3.3            5.3           -1.7           -7.8            0.2  
     II            5.5            6.1            0.6            6.1           -1.7            0.6  
     I            -1.1            0.2            1.3           -1.3           -5.4           -0.2  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2023 ANNUAL       -0.8           -0.5            0.3            4.7            0.5            5.5  

2023 IV            0.7           -0.5           -1.2            6.2            2.9            5.4  
     III          -0.7           -0.8           -0.1            4.5 r          0.9            5.2  
     II           -1.2           -0.7            0.5            5.0            0.9            6.3  
     I            -1.4           -0.2            1.3            3.8           -1.9            5.3  

2022 ANNUAL       -1.3            2.8            4.2            3.5           -4.3            4.8  

2022 IV           -1.9            0.7            2.7            2.8           -4.1            4.9  
     III          -1.7            2.8            4.6            4.8           -3.2            6.6  
     II           -1.5            3.6            5.1            2.5           -5.7            4.0  
     I            -0.7            4.3            5.0            3.2           -4.6            3.9  

2021 ANNUAL        1.7            4.9            3.2            2.3           -2.4            0.6  

2021 IV            0.0            3.6            3.5            2.7           -4.0            2.6  
     III           0.3            4.2            3.8            2.6           -2.7            2.2  
     II            4.9           15.0            9.6           -0.6           -5.2           -5.2  
     I             1.6           -1.9           -3.5            4.3            2.3            2.6  
---------------------------------------------------------------------------------------------------
                                         Indexes 2017=100

2023 ANNUAL       98.0           99.8          101.8          124.0           99.4          126.5  

2023 IV           98.5           99.3          100.8          126.9          100.6          128.8  
     III          98.0 r         99.9 r        102.0 r        124.9 r         99.7 r        127.5 r
     II           98.1 r        100.0 r        101.9          123.2           99.3          125.6 r
     I            97.4           99.7          102.4          120.9           98.0          124.1  

2022 ANNUAL       98.8          100.3          101.5          118.5           98.9          119.9  

2022 IV           97.8           99.8          102.1          119.5           97.8          122.2  
     III          98.6          100.8          102.2          119.6           98.9          121.2  
     II           99.3          100.7          101.4          117.4           98.4          118.1  
     I            98.8           99.9          101.2          116.4           99.9          117.9  

2021 ANNUAL      100.2           97.5           97.4          114.5          103.3          114.3  

2021 IV           99.8           99.2           99.4          116.2          102.0          116.5  
     III         100.3           98.0           97.7          114.0          102.2          113.7  
     II          100.8           97.2           96.5          114.5          104.3          113.6  
     I            99.4           95.8           96.3          112.8          104.7          113.5  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   February 1, 2024
r=revised                                                        Source: Bureau of Labor Statistics



Table 4. Durable manufacturing sector: Labor productivity, hourly compensation, and unit labor
costs, seasonally adjusted.
                                                                             Real
Year              Labor                                       Hourly         hourly          Unit
and               produc-                      Hours          compensa-      compensa-       labor
quarter           tivity        Output         worked         tion (1)       tion (2)        costs
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate (5)

2023 ANNUAL       -1.2            0.2            1.4            4.4            0.3            5.6  

2023 IV            1.4           -4.4           -5.7            9.0            6.0            7.4  
     III          -2.0 r          1.4 r          3.4            3.5 r         -0.1 r          5.6 r
     II            5.2            3.9 r         -1.2            7.8            4.9            2.5 r
     I            -4.2           -1.8            2.5            5.6            1.7           10.2  

2022 ANNUAL       -1.0            3.6            4.7            2.4           -5.2            3.5  

2022 IV           -2.2           -2.7           -0.5           -1.5           -5.5            0.7  
     III          -3.7            2.0            5.9            7.5            1.9           11.7  
     II            3.7            5.4            1.6            3.4           -5.8           -0.3  
     I            -3.0            5.6            8.9           -1.8          -10.2            1.2  

2021 ANNUAL        0.7            3.8            3.1            3.2           -1.6            2.4  

2021 IV            0.2            5.3            5.1            9.5            0.7            9.3  
     III          -3.0            2.7            5.9           -7.4          -13.2           -4.6  
     II           -2.6           -2.9           -0.3            9.0            0.9           11.9  
     I            -4.4           -0.6            3.9            0.7           -3.5            5.3  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2023 ANNUAL       -1.2            0.2            1.4            4.4            0.3            5.6  

2023 IV            0.0           -0.3           -0.3            6.4            3.1            6.4  
     III          -0.9 r          0.2            1.0            3.8            0.2            4.7 r
     II           -1.3            0.3 r          1.7            4.8            0.7            6.2 r
     I            -1.6            0.7            2.4            3.7           -2.0            5.4  

2022 ANNUAL       -1.0            3.6            4.7            2.4           -5.2            3.5  

2022 IV           -1.3            2.5            3.9            1.8           -5.0            3.2  
     III          -0.8            4.5            5.3            4.6           -3.5            5.3  
     II           -0.6            4.7            5.3            0.7           -7.3            1.3  
     I            -2.1            2.6            4.8            2.0           -5.7            4.2  

2021 ANNUAL        0.7            3.8            3.1            3.2           -1.6            2.4  

2021 IV           -2.5            1.1            3.6            2.7           -3.9            5.3  
     III          -2.7            0.9            3.8            3.4           -1.9            6.2  
     II            6.6           18.0           10.7            0.7           -4.1           -5.6  
     I             2.3           -2.3           -4.5            5.7            3.6            3.3  
---------------------------------------------------------------------------------------------------
                                         Indexes 2017=100

2023 ANNUAL       96.0           98.2          102.2          123.4           98.9          128.5  

2023 IV           96.4           97.7          101.4          126.5          100.3          131.3  
     III          96.0 r         98.8 r        102.9 r        123.8 r         98.9 r        128.9 r
     II           96.5 r         98.5 r        102.1          122.8           98.9          127.2 r
     I            95.3           97.6          102.4          120.5           97.7          126.4  

2022 ANNUAL       97.2           97.9          100.8          118.2           98.7          121.6  

2022 IV           96.3           98.0          101.8          118.9           97.3          123.4  
     III          96.9           98.7          101.9          119.3           98.7          123.2  
     II           97.8           98.2          100.4          117.2           98.2          119.8  
     I            96.9           96.9          100.0          116.2           99.7          119.9  

2021 ANNUAL       98.2           94.5           96.3          115.3          104.1          117.5  

2021 IV           97.6           95.6           97.9          116.7          102.4          119.6  
     III          97.6           94.4           96.7          114.1          102.3          116.9  
     II           98.3           93.7           95.3          116.3          105.9          118.3  
     I            99.0           94.4           95.4          113.9          105.7          115.0  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   February 1, 2024
r=revised                                                        Source: Bureau of Labor Statistics



Table 5. Nondurable manufacturing sector: Labor productivity, hourly compensation, and unit labor
costs, seasonally adjusted.
                                                                             Real
Year              Labor                                       Hourly         hourly          Unit
and               produc-                      Hours          compensa-      compensa-       labor
quarter           tivity        Output         worked         tion (1)       tion (2)        costs
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate (5)

2023 ANNUAL        0.3           -1.3           -1.6            4.9            0.7            4.6  

2023 IV            2.5           -0.3           -2.7            2.5           -0.2            0.0  
     III           2.6 r         -1.9 r         -4.4 r          8.7 r          5.0            6.0 r
     II            2.0           -1.7           -3.6            8.4            5.6            6.3  
     I             1.1            0.9           -0.2            2.4           -1.3            1.3  

2022 ANNUAL       -1.6            1.7            3.4            5.3           -2.6            7.1  

2022 IV           -4.2           -4.6           -0.4            2.6           -1.5            7.1  
     III          -0.2           -1.2           -1.1            7.5            1.8            7.6  
     II            1.3            0.6           -0.7            2.7           -6.5            1.3  
     I            -3.9            0.6            4.7            5.2           -3.8            9.4  

2021 ANNUAL        1.1            4.5            3.3            0.7           -3.9           -0.4  

2021 IV           -6.2            3.8           10.7            5.7           -2.8           12.7  
     III          -1.5            2.6            4.2           10.1            3.3           11.8  
     II           12.1           14.4            2.1            1.1           -6.4           -9.8  
     I             1.7           -1.2           -2.9           -5.7           -9.6           -7.2  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2023 ANNUAL        0.3           -1.3           -1.6            4.9            0.7            4.6  

2023 IV            2.0           -0.7           -2.7            5.5            2.2            3.4  
     III           0.3 r         -1.8 r         -2.2 r          5.5            1.9            5.2 r
     II           -0.4           -1.7           -1.3            5.2            1.1            5.6  
     I            -0.5           -1.1           -0.6            3.8           -1.9            4.3  

2022 ANNUAL       -1.6            1.7            3.4            5.3           -2.6            7.1  

2022 IV           -1.8           -1.2            0.6            4.5           -2.5            6.3  
     III          -2.3            0.9            3.3            5.2           -2.9            7.7  
     II           -2.6            1.9            4.6            5.9           -2.5            8.7  
     I            -0.1            5.2            5.4            5.5           -2.5            5.6  

2021 ANNUAL        1.1            4.5            3.3            0.7           -3.9           -0.4  

2021 IV            1.3            4.7            3.4            2.6           -4.0            1.3  
     III           1.8            5.9            4.0            1.1           -4.1           -0.7  
     II            2.2           10.3            7.9           -3.1           -7.7           -5.2  
     I            -0.7           -2.5           -1.8            2.1            0.1            2.9  
---------------------------------------------------------------------------------------------------
                                         Indexes 2017=100

2023 ANNUAL       99.2          100.2          101.0          125.1          100.3          126.1  

2023 IV          100.0           99.8           99.8          127.5          101.1          127.5  
     III          99.4 r         99.9 r        100.5 r        126.7 r        101.2 r        127.5 r
     II           98.8 r        100.3 r        101.6          124.1          100.0          125.6 r
     I            98.3          100.8          102.5          121.6           98.6          123.7  

2022 ANNUAL       98.9          101.5          102.7          119.2           99.6          120.6  

2022 IV           98.0          100.5          102.6          120.9           99.0          123.3  
     III          99.1          101.7          102.7          120.1           99.3          121.2  
     II           99.1          102.0          102.9          118.0           98.9          119.0  
     I            98.8          101.9          103.1          117.2          100.6          118.6  

2021 ANNUAL      100.6           99.9           99.3          113.2          102.2          112.6  

2021 IV           99.8          101.7          101.9          115.7          101.5          116.0  
     III         101.4          100.8           99.4          114.1          102.3          112.6  
     II          101.8          100.1           98.4          111.4          101.5          109.5  
     I            98.9           96.8           97.9          111.1          103.1          112.3  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   February 1, 2024
r=revised                                                        Source: Bureau of Labor Statistics



Table 6. Nonfinancial corporate sector: Labor productivity, hourly compensation, unit labor costs,
unit profits, and prices, seasonally adjusted.
                                                                       Value-
                                                     Real              added              Unit
                                           Hourly    hourly            output    Unit     combined
Year         Labor                         compen-   compen-   Unit    price     nonlabor input   Unit
and          produc-             Hours     sation    sation    labor   deflator  costs    costs   profits
quarter      tivity    Output    worked    (1)       (2)       costs   (4)       (6)      (7)     (8)
---------------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate (5)

2023 III       2.5 r     3.3 r    0.8       3.7 r     0.1 r     1.2 r    1.9 r   -3.3 r   -0.2 r   13.7 r
     II        2.2       1.2     -0.9       7.2       4.4       4.9      3.1     -2.4      2.6      6.0  
     I         1.6       4.3      2.6       6.7       2.9       5.0      0.0      2.3      4.1    -18.8  

2022 ANNUAL   -1.0       3.1      4.2       4.1      -3.7       5.2      7.5     11.8      7.2      9.1  

2022 IV       -1.3      -0.1      1.2       0.3      -3.7       1.7      1.1      2.2      1.8     -2.3  
     III       1.4       5.0      3.6       6.7       1.0       5.2      3.1      1.1      3.9     -0.6  
     II       -1.6       0.6      2.3       2.6      -6.5       4.3     11.2      9.1      5.8     42.8  
     I        -3.1       0.8      4.0       1.7      -7.0       4.9     10.4     22.8     10.2     11.7  

2021 ANNUAL    3.6       9.0      5.1       4.7      -0.2       1.0      4.8      3.8      1.8     23.3  

2021 IV       -2.5       5.2      8.0       4.2      -4.2       6.9      7.7     18.6     10.3     -4.7  
     III       2.6       7.0      4.2       8.7       1.9       5.9      3.6     15.2      8.6    -17.9  
     II        0.6       6.4      5.8       6.9      -0.9       6.3      8.5    -12.0      0.4     59.6  
     I         3.4       7.7      4.2      -0.5      -4.7      -3.8      5.7      5.6     -1.0     53.3  
---------------------------------------------------------------------------------------------------------
                       Percent change from corresponding quarter of previous year

2023 III       1.2       2.2 r    0.9       4.5       0.9       3.2 r    1.5     -0.4 r    2.1 r   -1.1 r
     II        1.0       2.6      1.6       5.2       1.1       4.2      1.8      0.7      3.1     -4.4  
     I         0.0       2.4      2.4       4.1      -1.6       4.1      3.8      3.6      3.9      3.0  

2022 ANNUAL   -1.0       3.1      4.2       4.1      -3.7       5.2      7.5     11.8      7.2      9.1  

2022 IV       -1.2       1.6      2.8       2.8      -4.1       4.0      6.4      8.5      5.4     11.5  
     III      -1.5       2.9      4.4       3.8      -4.2       5.3      8.1     12.6      7.5     10.8  
     II       -1.2       3.4      4.6       4.3      -4.0       5.5      8.2     16.3      8.7      5.7  
     I        -0.6       4.8      5.5       5.3      -2.6       6.0      7.5     10.2      7.3      8.7  

2021 ANNUAL    3.6       9.0      5.1       4.7      -0.2       1.0      4.8      3.8      1.8     23.3  

2021 IV        1.0       6.6      5.5       4.8      -2.0       3.7      6.4      6.1      4.4     17.6  
     III       4.6      10.9      6.0       5.7       0.3       1.1      4.0     14.3      4.7      0.5  
     II        3.7      17.1     12.9       1.7      -3.1      -1.9      5.6      3.1     -0.5     48.8  
     I         5.7       2.4     -3.2       6.5       4.4       0.7      3.3     -5.6     -1.3     37.5  
---------------------------------------------------------------------------------------------------------
                                            Indexes 2017=100

2023 III     111.1 r   117.8 r  106.1 r   133.4 r   106.6 r   120.2 r  121.8 r  110.2 r  116.9 r  154.9 r
     II      110.4     116.9    105.9     132.2     106.5     119.8    121.2    111.1    117.0    150.0  
     I       109.8     116.5    106.1     129.9     105.4     118.4    120.3    111.8    116.2    147.8  

2022 ANNUAL  109.6     114.6    104.5     126.7     105.8     115.5    118.8    110.0    113.7    153.2  

2022 IV      109.3     115.3    105.4     127.8     104.6     116.9    120.3    111.2    115.0    155.7  
     III     109.7     115.3    105.1     127.7     105.6     116.4    120.0    110.6    114.5    156.6  
     II      109.3     113.9    104.2     125.7     105.4     115.0    119.0    110.3    113.4    156.9  
     I       109.8     113.7    103.6     124.9     107.1     113.8    115.9    107.9    111.8    143.5  

2021 ANNUAL  110.8     111.1    100.3     121.7     109.8     109.8    110.5     98.4    106.1    140.4  

2021 IV      110.6     113.5    102.6     124.3     109.1     112.4    113.1    102.5    109.2    139.6  
     III     111.3     112.1    100.7     123.1     110.3     110.5    111.0     98.2    106.5    141.3  
     II      110.6     110.2     99.6     120.6     109.8     109.0    110.0     94.8    104.3    148.4  
     I       110.5     108.5     98.2     118.5     110.0     107.3    107.8     97.9    104.2    132.0  
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                         February 1, 2024
r=revised                                                              Source: Bureau of Labor Statistics



SOURCES: Output data are from the Bureau of Economic Analysis and the Census Bureau of the U.S. 
Department of Commerce; the Bureau of Labor Statistics, U.S. Department of Labor; and the Federal 
Reserve Board. Hours and compensation data are from the Bureau of Labor Statistics and the Bureau of 
Economic Analysis.

SIZE OF REVISIONS:  Productivity and cost measures are revised on a regular schedule as more 
complete data become available. The first estimate is published within 40 days of the close of the 
reference quarter, the second estimate approximately 30 days later, and the third estimate approximately 
60 days after the second estimate. Based on past revisions, the third estimate of nonfarm business sector 
quarterly labor productivity growth has differed from the first estimate by -1.1 to +1.3 percentage point 
about 80 percent of the time. This interval is based on estimates for reference quarters from the first 
quarter of 2001 to the third quarter of 2023. For more about revisions to labor productivity growth see 
“Revisions to BLS quarterly labor productivity estimates: How large are they?” at 
www.bls.gov/opub/mlr/2022/article/revisions-to-bls-quarterly-labor-productivity-estimates-how-large-
are-they.htm.

					Table Footnotes

(1) Wages and salaries of employees plus employers' contributions for social insurance and private 
benefit plans. Except for nonfinancial corporations, where there are no self-employed, data also include 
an estimate of wages, salaries, and supplemental payments for the self-employed.

(2) The change for recent quarters is based on the Consumer Price Index for all urban consumers 
(CPI-U). The trend from 1978-2022 is based on the Consumer Price Index Retroactive series (CPI-U-
RS).

(3) Unit nonlabor payments include profits, consumption of fixed capital, taxes on production and 
imports less subsidies, net interest and miscellaneous payments, business current transfer payments, 
rental income of persons, and the current surplus of government enterprises.

(4) Current dollar output divided by the output index.

(5) Quarterly changes: Percent change compounded at annual rate is calculated using index numbers to 
three decimal places. Indexes published in the news release are rounded to one decimal place for 
convenience. Annual changes: Percent change is calculated using annual indexes to three decimal 
places.

(6) Unit nonlabor costs include consumption of fixed capital, taxes on production and imports less 
subsidies, net interest and miscellaneous payments, and business current transfer payments.

(7) Total unit costs are the sum of unit labor and nonlabor costs.

(8) Unit profits include corporate profits before tax with inventory valuation and capital consumption 
adjustment.

Last Modified Date: February 01, 2024