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Economic News Release
PRINT:Print

Productivity and Costs News Release



Transmission of material in this release is embargoed until                                 USDL 23-0150
8:30 a.m. (ET) Thursday, February 2, 2023

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 2022, Preliminary

Nonfarm business sector labor productivity increased 3.0 percent in the fourth quarter of 2022, the 
U.S. Bureau of Labor Statistics reported today, as output increased 3.5 percent and hours worked 
increased 0.5 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 decreased 1.5 percent, 
reflecting a 0.8-percent increase in output and a 2.3-percent increase in hours worked. (See table A1.) 
Annual average productivity decreased 1.3 percent from 2021 to 2022. This is the largest annual decline 
in the measure since 1974, when productivity decreased 1.7 percent. (See table C1.) 

Unit labor costs in the nonfarm business sector increased 1.1 percent in the fourth quarter of 2022, 
reflecting a 4.1-percent increase in hourly compensation and a 3.0-percent increase in productivity. Unit 
labor costs increased 4.5 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 1.0 percent in the fourth 
quarter, and declined 3.8 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 persons, including employees, proprietors, and unpaid family workers. The fourth 
quarter of 2022 is the second consecutive quarter in which both output and labor productivity increased, 
following decreases in the first two quarters of the year. Hours worked grew in all four quarters of 2022, 
but slower growth in the fourth quarter contributed to the acceleration in productivity growth in that 
quarter. The labor productivity index has grown at an annualized rate of 1.7 percent since the last 
business cycle peak in the fourth quarter of 2019--the last quarter before the COVID-19 pandemic and 
ensuing recession--reflecting a 2.1-percent rate of growth in output and a 0.4-percent rate of growth in 
hours worked over that three-year period. 

Manufacturing sector labor productivity decreased 1.5 percent in the fourth quarter of 2022, as output 
decreased 2.6 percent and hours worked decreased 1.1 percent. In the durable manufacturing sector, 
productivity decreased 1.7 percent, with a 2.9-percent decrease in output and a 1.2-percent decrease in 
hours worked. Nondurable manufacturing sector productivity decreased 1.4 percent, as output decreased 
2.3 percent and hours worked decreased 0.9 percent. Total manufacturing sector productivity decreased 
1.5 percent from the same quarter a year ago. (See tables A1, 3, 4, and 5.)

Unit labor costs in the total manufacturing sector increased 4.8 percent in the fourth quarter of 2022, 
reflecting a 3.2-percent increase in hourly compensation and a 1.5-percent decrease in productivity. 
Manufacturing unit labor costs increased 4.3 percent from the same quarter a year ago. (See tables A1 
and 3.)

Manufacturing sector labor productivity declined in 5 of the last 6 quarters. In the third and fourth 
quarters of 2022, output also declined; productivity decreased in the other three quarters because hours 
worked increased faster than output. The total manufacturing labor productivity index has grown at an 
annualized rate of 0.8 percent in the current business cycle since the fourth quarter of 2019, reflecting a 
0.9-percent rate of growth in output and a 0.1-percent rate of growth in hours worked. 

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 2022 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 2022, nonfarm business productivity was revised up 0.6 percentage point, to an 
increase of 1.4 percent. (See table B1.) Unit labor costs increased 2.0 percent in the third quarter, rather 
than increasing 2.4 percent as previously reported.

In the manufacturing sector, productivity in the third quarter of 2022 was revised down 0.6 percentage 
point, to a decrease of 3.5 percent. Manufacturing unit labor costs increased 6.5 percent, a 0.7-
percentage point upward revision from the previous estimate.

In the nonfinancial corporate sector, productivity was revised up 0.2 percentage point in the third 
quarter of 2022 to a decrease of 1.6 percent. This revision reflects a 0.1-percentage point upward 
revision to output to an increase of 1.9 percent. Hours worked were revised down 0.2 percentage point to 
an increase of 3.5 percent. (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 decreased 1.3 percent in 
2022, as output increased 2.3 percent and hours worked increased 3.7 percent. This is the largest annual 
decline in productivity since 1974, when productivity decreased 1.7 percent, and is the second-largest 
annual decline in the series, which begins in 1948.

Unit labor costs in the nonfarm business sector increased 5.7 percent in 2022, reflecting an increase of 
4.4 percent in hourly compensation and a decline of 1.3 percent in productivity. This is the largest 
annual increase in unit labor costs since an 8.2-percent increase in 1982. Real hourly compensation, 
which takes into account changes in consumer prices, decreased 3.4 percent in 2022. This is the largest 
decline in the series, which begins in 1948. Consumer prices grew 8.0 percent in 2022, which was the 
highest annual growth rate since a 9.4-percent increase in 1981.

In the manufacturing sector, productivity decreased 0.9 percent in 2022, reflecting an increase in 
output of 3.2 percent and an increase in hours of 4.2 percent. The increase in hours was the largest in the 
series, which begins in 1988.

Manufacturing unit labor costs increased 4.3 percent in 2022. Manufacturing real hourly compensation 
decreased 4.3 percent, as hourly compensation increased 3.4 percent while consumer prices increased 
8.0 percent. The decrease in real hourly compensation was the largest in the series, which begins in 
1988.

Quarterly and annual data, where available, for all sectors from 2020 to 2022 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 2022 is 
scheduled to be released on Thursday, March 2, 2023, 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 3, 2023. This benchmark will be incorporated in the next release on 
March 2, 2023.
=========================================================================================================================



=========================================================================================================================
Table A1. Labor productivity growth and related measures - preliminary fourth-quarter 2022
(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            3.0          3.5      0.5        4.1            1.0           1.1
                        A year ago                 -1.5          0.8      2.3        3.0           -3.8           4.5
                        
Business                Previous quarter            3.2          3.3      0.1        4.5            1.4           1.3
                        A year ago                 -1.4          0.7      2.2        3.1           -3.7           4.6
                        
Manufacturing           Previous quarter           -1.5         -2.6     -1.1        3.2            0.1           4.8
                        A Year ago                 -1.5          1.0      2.5        2.7           -4.1           4.3

 Durable                Previous quarter           -1.7         -2.9     -1.2        2.4           -0.8           4.1
 manufacturing          A year ago                 -1.5          2.3      3.8        2.1           -4.6           3.6

 Nondurable             Previous quarter           -1.4         -2.3     -0.9        5.0            1.8           6.5
 manufacturing          A year ago                 -0.8         -0.3      0.5        3.5           -3.3           4.3
=========================================================================================================================


=========================================================================================================================
Table A2. Labor productivity growth and related measures - revised and previously published third-quarter 
2022
(percent change from previous quarter at annual rate)


                                                Labor                   Hours    Hourly         Real hourly    Unit labor
Sector                                          productivity   Output   worked   compensation   compensation   costs
-------------------------------------------------------------------------------------------------------------------------       
Nonfinancial             Revised                   -1.6          1.9      3.5        3.6           -2.0           5.3
corporate          Previously published            -1.8          1.8      3.7        3.5           -2.1           5.3
=========================================================================================================================


=========================================================================================================================
Table B1. Labor productivity growth and related measures - revised and previously published third-quarter 2022
(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                     1.4          3.6      2.3        3.4           -2.2           2.0
                   Previously published             0.8          3.3      2.5        3.2           -2.3           2.4
                        
Business                Revised                     1.1          3.5      2.4        3.2           -2.3           2.0
                   Previously published             0.5          3.1      2.6        3.1           -2.5           2.6
                        
Manufacturing           Revised                    -3.5         -0.2      3.5        2.7           -2.8           6.5
                   Previously published            -2.9          0.6      3.6        2.7           -2.9           5.8

 Durable                Revised                    -5.0          1.7      7.0        2.2           -3.3           7.5
 manufacturing     Previously published            -5.0          1.7      7.1        2.2           -3.3           7.5
                        
 Nondurable             Revised                    -0.1         -2.1     -2.1        2.9           -2.7           2.9
 manufacturing     Previously published             1.3         -0.7     -1.9        2.8           -2.8           1.5
=========================================================================================================================


=========================================================================================================================
Table C1. Labor productivity growth and related measures - annual average changes: 2018-2022


                                                Labor                   Hours    Hourly         Real hourly    Unit labor
Sector                  Year                    productivity   Output   worked   compensation   compensation   costs
-------------------------------------------------------------------------------------------------------------------------
Nonfarm business        2022                       -1.3          2.3      3.7       4.4            -3.4           5.7
                        2021                        2.4          7.8      5.3       4.9             0.2           2.4
                        2020                        4.4         -3.5     -7.6       8.1             6.8           3.6
                        2019                        2.0          2.7      0.7       3.8             2.0           1.8
                        2018                        1.4          3.5      2.0       3.4             0.9           1.9
                        
Manufacturing           2022                       -0.9          3.2      4.2       3.4            -4.3           4.3
                        2021                        2.7          5.8      3.1       2.7            -1.8           0.1
                        2020                        0.8         -6.6     -7.4       7.0             5.7           6.1
                        2019                       -2.4         -2.3      0.2       2.4             0.5           4.9
                        2018                        0.2          2.0      1.8       2.3            -0.1           2.1
=========================================================================================================================



					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. 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 
2021. Nonfarm business, which excludes farming, accounted for about 76 percent of GDP in 
2021.

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 51 percent of the value of GDP in 2021. 

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 2012=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)

2022 ANNUAL   -1.3         2.2        3.6        4.5       -3.2        5.8        9.3        7.3  

2022 IV        3.2         3.3        0.1        4.5        1.4        1.3        5.3        3.0  
     III       1.1 r       3.5 r      2.4 r      3.2 r     -2.3 r      2.0 r      6.2 r      3.8 r
     II       -3.8        -1.4        2.5        2.7       -7.1        6.8       15.3       10.4  
     I        -6.0        -2.4        3.8        2.0       -6.6        8.6        8.5        8.5  

2021 ANNUAL    2.4         7.7        5.1        5.0        0.3        2.6        8.3        4.9  

2021 IV        4.5         9.0        4.4        8.4        0.4        3.8       12.2        7.3  
     III      -2.1         2.6        4.8        7.1        0.4        9.4        2.7        6.5  
     II        2.9         8.7        5.7        7.6       -0.5        4.6       11.0        7.3  
     I         2.9         8.1        5.0       -1.1       -5.0       -4.0       22.5        6.3  

2020 ANNUAL    4.3        -3.4       -7.4        8.0        6.7        3.5       -3.8        0.4  

2020 IV       -4.5         5.3       10.2        8.8        6.4       13.8      -11.6        2.4  
     III       8.3        47.1       35.9       -4.6       -9.0      -11.9       33.3        4.6  
     II       16.6       -35.1      -44.3       24.9       29.2        7.2      -19.2       -4.5  
     I        -0.9        -6.3       -5.5        9.7        8.3       10.7      -12.2        0.3  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2022 ANNUAL   -1.3         2.2        3.6        4.5       -3.2        5.8        9.3        7.3  

2022 IV       -1.4         0.7        2.2        3.1       -3.7        4.6        8.8        6.4  
     III      -1.2 r       2.1 r      3.3        4.0       -3.9 r      5.3 r     10.5 r      7.5 r
     II       -2.0         1.8        3.9        5.0       -3.3        7.1        9.6        8.2  
     I        -0.3         4.4        4.7        6.2       -1.6        6.6        8.5        7.4  

2021 ANNUAL    2.4         7.7        5.1        5.0        0.3        2.6        8.3        4.9  

2021 IV        2.0         7.1        5.0        5.4       -1.2        3.3       11.9        6.8  
     III      -0.3         6.1        6.4        5.5        0.2        5.8        5.4        5.6  
     II        2.3        16.1       13.5        2.5       -2.2        0.2       12.5        5.1  
     I         5.5         2.1       -3.3        6.4        4.4        0.8        3.9        2.1  

2020 ANNUAL    4.3        -3.4       -7.4        8.0        6.7        3.5       -3.8        0.4  

2020 IV        4.6        -1.5       -5.8        9.2        7.9        4.5       -4.4        0.6  
     III       6.4        -2.3       -8.2        8.7        7.3        2.1       -2.1        0.3  
     II        4.8       -10.4      -14.5       10.1        9.6        5.0       -8.0       -0.7  
     I         1.4         0.5       -0.9        4.1        2.0        2.6       -0.9        1.1  
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2022 ANNUAL  113.8       128.8      113.1      143.0      112.0      125.6      123.4      124.6  

2022 IV      114.4       130.0      113.6      145.0      111.5      126.7      126.6      126.7  
     III     113.5 r     129.0 r    113.6 r    143.4 r    111.1 r    126.3 r    125.0 r    125.7 r
     II      113.2       127.9      113.0      142.3      111.8      125.7      123.1      124.5  
     I       114.3       128.3      112.3      141.3      113.8      123.6      118.8      121.5  

2021 ANNUAL  115.3       126.0      109.3      136.8      115.7      118.7      112.8      116.1  

2021 IV      116.1       129.1      111.2      140.6      115.8      121.1      116.4      119.0  
     III     114.8       126.4      110.0      137.8      115.7      120.0      113.1      117.0  
     II      115.5       125.5      108.7      135.5      115.6      117.3      112.3      115.1  
     I       114.7       123.0      107.2      133.0      115.7      116.0      109.4      113.1  

2020 ANNUAL  112.6       117.0      103.9      130.3      115.4      115.7      104.2      110.6  

2020 IV      113.8       120.6      105.9      133.4      117.2      117.2      104.0      111.4  
     III     115.1       119.0      103.4      130.6      115.4      113.5      107.3      110.8  
     II      112.9       108.1       95.8      132.2      118.1      117.1       99.8      109.5  
     I       108.6       120.4      110.8      125.0      110.8      115.1      105.3      110.8  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   February 2, 2023
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)

2022 ANNUAL   -1.3         2.3        3.7        4.4       -3.4        5.7        8.5        6.9  

2022 IV        3.0         3.5        0.5        4.1        1.0        1.1        5.6        3.0  
     III       1.4 r       3.6 r      2.3 r      3.4 r     -2.2 r      2.0 r      6.2 r      3.8 r
     II       -4.1        -1.2        2.9        2.3       -7.4        6.7       13.9        9.7  
     I        -5.9        -2.5        3.6        2.1       -6.4        8.5        6.4        7.6  

2021 ANNUAL    2.4         7.8        5.3        4.9        0.2        2.4        7.7        4.6  

2021 IV        4.4         9.1        4.5        8.2        0.3        3.6       12.9        7.5  
     III      -2.4         2.7        5.3        6.7        0.0        9.3        2.3        6.3  
     II        2.7         8.9        6.0        7.4       -0.7        4.5        8.6        6.2  
     I         3.0         8.5        5.3       -1.3       -5.2       -4.2       22.8        6.2  

2020 ANNUAL    4.4        -3.5       -7.6        8.1        6.8        3.6       -3.8        0.4  

2020 IV       -3.9         5.3        9.5        9.5        7.1       13.9      -12.7        1.9  
     III       7.2        47.2       37.2       -5.5       -9.8      -11.9       32.4        4.2  
     II       17.9       -35.0      -44.9       25.8       30.1        6.6      -17.4       -3.9  
     I        -1.4        -6.7       -5.4        9.8        8.4       11.3      -12.8        0.4  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2022 ANNUAL   -1.3         2.3        3.7        4.4       -3.4        5.7        8.5        6.9  

2022 IV       -1.5         0.8        2.3        3.0       -3.8        4.5        8.0        6.0  
     III      -1.1 r       2.2 r      3.3 r      4.0       -4.0        5.2 r      9.8 r      7.1  
     II       -2.1         1.9        4.1        4.8       -3.5        7.0        8.8        7.8  
     I        -0.4         4.5        4.8        6.1       -1.8        6.5        7.5        6.9  

2021 ANNUAL    2.4         7.8        5.3        4.9        0.2        2.4        7.7        4.6  

2021 IV        1.9         7.3        5.3        5.2       -1.4        3.2       11.4        6.5  
     III      -0.2         6.3        6.5        5.5        0.2        5.7        4.5        5.1  
     II        2.2        16.3       13.8        2.3       -2.4        0.1       11.4        4.6  
     I         5.8         2.2       -3.4        6.4        4.5        0.6        4.0        2.0  

2020 ANNUAL    4.4        -3.5       -7.6        8.1        6.8        3.6       -3.8        0.4  

2020 IV        4.7        -1.5       -5.9        9.3        8.0        4.5       -4.5        0.6  
     III       6.4        -2.4       -8.2        8.6        7.3        2.1       -2.0        0.3  
     II        5.1       -10.4      -14.8       10.3        9.8        4.9       -7.8       -0.6  
     I         1.4         0.5       -1.0        4.2        2.0        2.7       -1.1        1.1  
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2022 ANNUAL  113.7       128.9      113.4      143.0      112.0      125.8      122.8      124.5  

2022 IV      114.3       130.2      114.0      144.9      111.4      126.8      126.0      126.5  
     III     113.4 r     129.1 r    113.8 r    143.5 r    111.1 r    126.5 r    124.3 r    125.5 r
     II      113.0       128.0      113.2      142.3      111.8      125.9      122.5      124.4  
     I       114.2       128.4      112.4      141.5      113.9      123.8      118.5      121.5  

2021 ANNUAL  115.2       126.0      109.3      137.0      115.9      118.9      113.3      116.4  

2021 IV      116.0       129.2      111.4      140.7      115.9      121.3      116.7      119.3  
     III     114.7       126.4      110.2      138.0      115.8      120.3      113.2      117.2  
     II      115.4       125.5      108.8      135.8      115.8      117.6      112.6      115.4  
     I       114.7       122.9      107.2      133.4      116.0      116.3      110.3      113.7  

2020 ANNUAL  112.5       116.9      103.9      130.6      115.6      116.1      105.2      111.3  

2020 IV      113.8       120.4      105.8      133.8      117.5      117.6      104.8      112.0  
     III     114.9       118.9      103.4      130.8      115.5      113.8      108.4      111.5  
     II      112.9       107.9       95.6      132.7      118.6      117.5      101.1      110.3  
     I       108.4       120.2      110.9      125.3      111.0      115.6      106.0      111.4  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   February 2, 2023
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)

2022 ANNUAL       -0.9            3.2            4.2            3.4           -4.3            4.3  

2022 IV           -1.5           -2.6           -1.1            3.2            0.1            4.8  
     III          -3.5 r         -0.2 r          3.5 r          2.7           -2.8 r          6.5 r
     II            2.6 r          3.3 r          0.7            3.5           -6.3            0.9 r
     I            -3.3            3.7            7.3            1.4           -7.1            4.9  

2021 ANNUAL        2.7            5.8            3.1            2.7           -1.8            0.1  

2021 IV           -0.7            5.9            6.7            8.7            0.7            9.5  
     III          -0.5            3.8            4.3           -0.5           -6.7            0.0  
     II            5.1            5.7            0.6            6.6           -1.4            1.4  
     I             0.7            2.6            1.9           -1.7           -5.5           -2.3  

2020 ANNUAL        0.8           -6.6           -7.4            7.0            5.7            6.1  

2020 IV           -0.5            8.3            8.9            7.4            5.0            7.9  
     III          17.8           53.1           30.0          -12.4          -16.4          -25.6  
     II           -5.3          -43.1          -39.9           30.2           34.6           37.4  
     I             0.5           -5.3           -5.8            5.7            4.3            5.1  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2022 ANNUAL       -0.9            3.2            4.2            3.4           -4.3            4.3  

2022 IV           -1.5            1.0            2.5            2.7           -4.1            4.3  
     III          -1.3 r          3.1 r          4.5            4.1 r         -3.9            5.4 r
     II           -0.5            4.1 r          4.7            3.2           -4.9            3.8 r
     I             0.1            4.8            4.7            4.0           -3.7            3.9  

2021 ANNUAL        2.7            5.8            3.1            2.7           -1.8            0.1  

2021 IV            1.1            4.5            3.3            3.2           -3.3            2.1  
     III           1.2            5.1            3.9            2.9           -2.2            1.7  
     II            5.5           15.8            9.7           -0.3           -4.9           -5.6  
     I             2.8           -0.8           -3.5            4.8            2.8            1.9  

2020 ANNUAL        0.8           -6.6           -7.4            7.0            5.7            6.1  

2020 IV            2.8           -2.8           -5.4            6.7            5.4            3.8  
     III           2.9           -5.4           -8.1            7.2            5.9            4.2  
     II           -1.7          -15.2          -13.7           10.5           10.0           12.4  
     I            -1.3           -3.2           -1.8            3.4            1.3            4.8  
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2022 ANNUAL       97.7          103.2          105.6          131.2          102.7          134.3  

2022 IV           97.1          102.8          105.9          132.7          102.0          136.6  
     III          97.5 r        103.5 r        106.2 r        131.6 r        102.0 r        135.0 r
     II           98.4 r        103.6 r        105.2          130.7          102.7          132.9 r
     I            97.8          102.7          105.1          129.6          104.4          132.6  

2021 ANNUAL       98.6           99.9          101.4          126.9          107.3          128.7  

2021 IV           98.6          101.8          103.3          129.2          106.3          131.0  
     III          98.8          100.4          101.6          126.5          106.2          128.1  
     II           98.9           99.4          100.5          126.6          108.0          128.0  
     I            97.7           98.1          100.4          124.6          108.4          127.6  

2020 ANNUAL       96.0           94.4           98.3          123.5          109.3          128.6  

2020 IV           97.5           97.4           99.9          125.1          109.9          128.3  
     III          97.6           95.5           97.8          122.9          108.6          125.9  
     II           93.7           85.9           91.6          127.1          113.6          135.6  
     I            95.0           98.9          104.1          119.0          105.4          125.2  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   February 2, 2023
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)

2022 ANNUAL       -0.2            4.5            4.7            2.7           -4.9            2.9  

2022 IV           -1.7           -2.9           -1.2            2.4           -0.8            4.1  
     III          -5.0            1.7            7.0 r          2.2           -3.3            7.5  
     II            3.9            5.1            1.2            4.5           -5.4            0.6  
     I            -2.8            5.5            8.6           -0.4           -8.8            2.5  

2021 ANNUAL        5.0            8.2            3.0            3.5           -1.2           -1.4  

2021 IV            1.7            6.5            4.7           10.3            2.2            8.4  
     III           1.7            6.7            4.9           -6.1          -12.0           -7.7  
     II            1.7            1.0           -0.7            9.9            1.6            8.0  
     I             1.5            6.4            4.8           -0.3           -4.2           -1.7  

2020 ANNUAL        1.1           -7.9           -8.9            7.1            5.8            6.0  

2020 IV            2.3            9.1            6.7           11.2            8.8            8.7  
     III          42.5           93.9           36.1          -15.9          -19.7          -41.0  
     II          -13.9          -53.0          -45.4           34.7           39.3           56.5  
     I            -1.6           -8.3           -6.8            4.6            3.3            6.3  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2022 ANNUAL       -0.2            4.5            4.7            2.7           -4.9            2.9  

2022 IV           -1.5            2.3            3.8            2.1           -4.6            3.6  
     III          -0.6            4.7            5.3 r          4.1           -3.9            4.7  
     II            1.1            6.0            4.8            1.9           -6.2            0.8  
     I             0.6            4.9            4.3            3.2           -4.4            2.6  

2021 ANNUAL        5.0            8.2            3.0            3.5           -1.2           -1.4  

2021 IV            1.7            5.1            3.4            3.2           -3.3            1.5  
     III           1.8            5.7            3.9            3.4           -1.7            1.6  
     II           10.8           22.8           10.9            0.6           -4.0           -9.2  
     I             6.2            1.4           -4.5            5.9            3.9           -0.3  

2020 ANNUAL        1.1           -7.9           -8.9            7.1            5.8            6.0  

2020 IV            5.4           -2.3           -7.3            7.1            5.9            1.6  
     III           4.8           -5.1           -9.5            7.3            5.9            2.3  
     II           -4.7          -20.0          -16.1           11.3           10.8           16.8  
     I            -2.0           -4.3           -2.3            2.8            0.7            4.9  
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2022 ANNUAL      102.2          106.9          104.5          131.9          103.3          129.0  

2022 IV          101.5          106.9          105.2          133.2          102.4          131.2  
     III         102.0 r        107.6 r        105.6 r        132.5 r        102.6 r        129.9 r
     II          103.3 r        107.2 r        103.8          131.8          103.5          127.6 r
     I           102.3          105.9          103.5          130.3          105.0          127.4  

2021 ANNUAL      102.5          102.3           99.9          128.5          108.7          125.4  

2021 IV          103.0          104.4          101.4          130.5          107.4          126.6  
     III         102.6          102.8          100.2          127.3          106.8          124.1  
     II          102.2          101.2           99.0          129.3          110.3          126.6  
     I           101.7          100.9           99.2          126.3          109.8          124.2  

2020 ANNUAL       97.6           94.6           96.9          124.2          109.9          127.2  

2020 IV          101.3           99.4           98.0          126.4          111.0          124.7  
     III         100.8           97.2           96.5          123.1          108.7          122.1  
     II           92.2           82.4           89.3          128.5          114.9          139.4  
     I            95.8           99.5          103.9          119.3          105.7          124.6  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   February 2, 2023
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)

2022 ANNUAL       -1.3            2.0            3.4            4.6           -3.1            6.0  

2022 IV           -1.4           -2.3           -0.9            5.0            1.8            6.5  
     III          -0.1 r         -2.1 r         -2.1 r          2.9 r         -2.7 r          2.9 r
     II            1.5 r          1.4 r         -0.2            1.6           -8.1            0.1 r
     I            -3.2            1.8            5.1            4.6           -4.2            8.1  

2021 ANNUAL        0.3            3.5            3.2            1.4           -3.1            1.2  

2021 IV           -4.3            5.1            9.8            6.3           -1.5           11.1  
     III          -2.4            0.8            3.3           11.1            4.1           13.9  
     II            8.2           11.2            2.7            1.0           -6.5           -6.7  
     I             1.3           -1.3           -2.5           -5.1           -8.8           -6.3  

2020 ANNUAL       -0.1           -4.9           -4.8            7.2            5.9            7.3  

2020 IV           -4.3            7.7           12.5            1.0           -1.2            5.5  
     III          -0.6           19.8           20.6           -6.4          -10.7           -5.8  
     II           -1.2          -30.7          -29.8           24.8           29.1           26.4  
     I             2.5           -1.8           -4.1            8.0            6.6            5.4  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2022 ANNUAL       -1.3            2.0            3.4            4.6           -3.1            6.0  

2022 IV           -0.8           -0.3            0.5            3.5           -3.3            4.3  
     III          -1.5 r          1.5 r          3.1            3.8           -4.1            5.5 r
     II           -2.1 r          2.3 r          4.5            5.9           -2.5            8.2 r
     I            -0.5            4.7            5.2            5.7           -2.1            6.3  

2021 ANNUAL        0.3            3.5            3.2            1.4           -3.1            1.2  

2021 IV            0.6            3.9            3.2            3.2           -3.3            2.6  
     III           0.6            4.5            3.9            1.9           -3.2            1.3  
     II            1.1            9.1            7.9           -2.4           -6.9           -3.4  
     I            -1.2           -3.0           -1.8            2.9            1.0            4.2  

2020 ANNUAL       -0.1           -4.9           -4.8            7.2            5.9            7.3  

2020 IV           -0.9           -3.2           -2.3            6.3            5.0            7.3  
     III           0.3           -5.4           -5.7            7.5            6.2            7.2  
     II            0.1           -9.5           -9.7            9.8            9.3            9.7  
     I            -0.5           -1.6           -1.1            4.7            2.5            5.2  
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2022 ANNUAL       96.5          103.7          107.4          130.0          101.8          134.7  

2022 IV           96.4          103.0          106.9          131.8          101.3          136.8  
     III          96.7 r        103.6 r        107.2 r        130.2 r        100.9 r        134.6 r
     II           96.7 r        104.2 r        107.7          129.3          101.6          133.7 r
     I            96.3          103.8          107.8          128.8          103.7          133.6  

2021 ANNUAL       97.8          101.6          103.9          124.3          105.1          127.0  

2021 IV           97.1          103.4          106.4          127.3          104.8          131.1  
     III          98.2          102.1          104.0          125.4          105.2          127.7  
     II           98.8          101.9          103.1          122.1          104.1          123.6  
     I            96.9           99.2          102.4          121.8          105.9          125.7  

2020 ANNUAL       97.6           98.2          100.7          122.5          108.5          125.6  

2020 IV           96.5           99.5          103.1          123.4          108.4          127.8  
     III          97.6           97.7          100.1          123.1          108.7          126.1  
     II           97.8           93.4           95.5          125.1          111.8          128.0  
     I            98.1          102.3          104.4          118.4          104.9          120.7  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   February 2, 2023
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)

2022 III      -1.6 r     1.9 r    3.5 r     3.6 r    -2.0 r     5.3      4.3 r    4.0 r    4.9 r    1.2 r
     II       -3.2      -0.6      2.7       3.8      -6.1       7.2     12.6     12.0      8.6     36.4  
     I        -4.8      -1.2      3.8       3.8      -4.9       9.1     12.2     24.7     13.6      4.8  

2021 ANNUAL    3.2       8.3      4.9       4.7       0.1       1.5      5.0      4.1      2.3     22.9  

2021 IV       -1.0       5.3      6.4       7.0      -0.9       8.1      8.6     17.7     10.9     -3.1  
     III       1.8       5.4      3.6      10.0       3.1       8.1      8.2     17.0     10.7     -4.0  
     II       -0.7       4.7      5.4       7.3      -0.8       8.0      8.2    -10.8      2.0     48.2  
     I         2.5       7.3      4.7      -1.7      -5.5      -4.1      4.4      3.3     -1.9     51.6  

2020 ANNUAL    3.5      -4.0     -7.3       8.1       6.7       4.4      1.4     -7.5      0.6      6.6  

2020 IV       12.6      24.3     10.4       7.1       4.8      -4.9      1.3     59.3     10.3    -38.3  
     III       0.9      34.5     33.3      -6.4     -10.6      -7.2      3.2    -22.9    -11.9    177.2  
     II        3.5     -41.0    -43.0      28.9      33.3      24.6      2.9    -35.4      2.3      7.0  
     I         2.7      -2.3     -4.9       8.5       7.1       5.6     -0.6      2.5      4.6    -30.6  
---------------------------------------------------------------------------------------------------------
                       Percent change from corresponding quarter of previous year

2022 III      -2.7       1.3      4.1       4.5      -3.5       7.4      9.4 r   14.4 r    9.5      8.8 r
     II       -1.8       2.2      4.1       6.1      -2.3       8.1     10.4     17.8     10.9      7.4  
     I        -1.2       3.5      4.8       7.0      -0.9       8.3      9.3     11.3      9.2      9.6  

2021 ANNUAL    3.2       8.3      4.9       4.7       0.1       1.5      5.0      4.1      2.3     22.9  

2021 IV        0.6       5.7      5.0       5.6      -1.0       4.9      7.3      6.1      5.3     20.3  
     III       3.9      10.2      6.0       5.6       0.3       1.6      5.5     14.5      5.1      7.4  
     II        3.7      17.1     12.9       1.4      -3.2      -2.2      4.3      3.1     -0.7     40.0  
     I         4.8       1.4     -3.2       6.2       4.2       1.3      3.0     -4.8     -0.6     29.1  

2020 ANNUAL    3.5      -4.0     -7.3       8.1       6.7       4.4      1.4     -7.5      0.6      6.6  

2020 IV        4.8      -0.9     -5.5       8.8       7.6       3.8      1.7     -5.0      1.0      6.2  
     III       2.9      -5.3     -8.0       8.5       7.2       5.5      1.6    -16.4     -1.6     23.7  
     II        3.3     -11.4    -14.3      10.6      10.1       7.1      1.1     -9.9      1.7     -3.0  
     I         2.6       1.6     -1.0       4.1       2.0       1.5      1.0      0.9      1.3     -1.2  
---------------------------------------------------------------------------------------------------------
                                            Indexes 2012=100

2022 III     111.2 r   126.1 r  113.4 r   147.0 r   113.9 r   132.2 r  130.3 r  119.6 r  128.0 r  143.9 r
     II      111.6     125.5    112.5     145.7     114.5     130.5    128.9    118.5    126.5    143.4  
     I       112.5     125.7    111.7     144.4     116.3     128.3    125.2    115.2    123.9    132.7  

2021 ANNUAL  114.0     123.8    108.6     139.0     117.6     121.9    118.0    104.4    116.1    129.5  

2021 IV      113.9     126.1    110.7     143.0     117.8     125.5    121.6    109.0    120.0    131.2  
     III     114.2     124.5    109.0     140.6     118.0     123.1    119.1    104.6    117.0    132.2  
     II      113.7     122.9    108.0     137.3     117.1     120.7    116.8    100.6    114.0    133.5  
     I       113.9     121.5    106.6     134.9     117.3     118.4    114.5    103.5    113.5    121.0  

2020 ANNUAL  110.4     114.3    103.5     132.7     117.5     120.2    112.4    100.3    113.6    105.4  

2020 IV      113.2     119.3    105.4     135.5     119.0     119.7    113.3    102.7    114.0    109.1  
     III     109.9     113.0    102.8     133.2     117.6     121.2    112.9     91.4    111.3    123.1  
     II      109.6     104.9     95.7     135.4     121.0     123.5    112.0     97.5    114.8     95.4  
     I       108.7     119.8    110.2     127.0     112.6     116.9    111.2    108.8    114.2     93.8  
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                         February 2, 2023
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 -1.0 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 2022. For more about revisions to labor productivity growth see 
“How large are revisions to estimates of quarterly labor productivity growth?” at 
www.bls.gov/osmr/research-papers/2021/ec210040.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 1978-2021 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 02, 2023