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Economic News Release
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Productivity and Costs News Release



Transmission of material in this release is embargoed until                                 USDL 21-0157
8:30 a.m. (ET) Thursday, February 4, 2021

Technical information: (202) 691-5606 •  Productivity@bls.gov • www.bls.gov/lpc                         
Media contact:         (202) 691-5902 •  PressOffice@bls.gov                                    
                                            
                                            PRODUCTIVITY AND COSTS         
                            Fourth Quarter and Annual Averages 2020, Preliminary

Nonfarm business sector labor productivity decreased 4.8 percent in the fourth quarter of 2020, the 
U.S. Bureau of Labor Statistics reported today, as output increased 5.3 percent and hours worked 
increased 10.7 percent. (All quarterly percent changes in this release are seasonally adjusted annual 
rates, and show what the percent change would be if the quarterly rate continued for four quarters.) 
The fourth-quarter 2020 decline in productivity is the largest quarterly decline in the measure since a 
decline of 5.1 percent in the second quarter of 1981. From the fourth quarter of 2019 to the fourth 
quarter of 2020, nonfarm business productivity increased 2.5 percent, reflecting a 2.7-percent decline in 
output and a 5.0-percent decline in hours worked. (See table A1.) 

Unit labor costs in the nonfarm business sector increased at an annual rate of 6.8 percent in the fourth 
quarter of 2020, the combined effect of a 1.7-percent increase in hourly compensation and a 4.8-percent 
decline in productivity. Nonfarm business unit labor costs increased 5.2 percent over the last four 
quarters. (See table A1.)
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 output per hour tend to reduce 
them.

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 2020 is the second consecutive quarter with increases in both output and hours, following 
historic declines in these measures in the second quarter of 2020. Output and hours worked remain 2.7 
percent and 5.0 percent below their fourth-quarter 2019 levels, respectively.

Manufacturing sector labor productivity increased at a 3.0 percent annual rate in the fourth quarter of 
2020, as output increased 11.2 percent and hours worked increased 8.0 percent. Productivity increased 
2.1 percent from the same quarter a year ago. (See tables A1 and 3.) 
Unit labor costs in the total manufacturing sector decreased 2.4 percent in the fourth quarter of 2020, 
reflecting a 0.5-percent increase in hourly compensation and a 3.0-percent increase in productivity. Unit 
labor costs increased 6.5 percent from the same quarter a year ago. (See tables A1 and 3.)


The fourth quarter of 2020 is the second consecutive quarter with increases in both output and hours, 
following the historic declines in these measures in the second quarter of 2020. Output and hours 
worked remain 3.0 percent and 5.0 percent below their fourth-quarter 2019 levels, respectively.

Durable goods manufacturing productivity increased 5.3 percent in the fourth quarter of 2020, reflecting 
a 12.5-percent increase in output and a 6.8-percent increase in hours. Nondurable goods manufacturing 
productivity was unchanged in the fourth quarter of 2020, as output and hours both increased 9.9 
percent. (See tables A1, 4, and 5.)
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 2020 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 2020, nonfarm business productivity was revised up 0.5 percentage point, to an 
increase of 5.1 percent, rather than increasing 4.6 percent as previously reported. (See table B1.) Unit 
labor costs in the nonfarm business sector decreased 7.0 percent in the third quarter, rather than 
decreasing 6.6 percent as previously reported.

In the manufacturing sector, productivity in the third quarter of 2020 was revised up 0.3 percentage 
point, to an increase of 20.2 percent. Manufacturing unit labor costs decreased 12.4 percent, a 0.3-
percentage point downward revision from the previous estimate.
In the nonfinancial corporate sector, productivity was revised up 0.7 percentage point in the third 
quarter of 2020, to an increase of 1.5 percent. Output and hours worked increased 34.3 percent and 32.3 
percent, respectively. (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 grew 2.6 percent in 2020, as 
output decreased 4.2 percent and hours worked decreased 6.6 percent. The 2.6-percent increase in 
nonfarm business labor productivity is the largest annual increase since 2010, when it increased 3.4 
percent. The decline in output (-4.2 percent) is the largest annual decline in the series, which begins in 
1947. The decline in hours (-6.6 percent) is the largest annual decline in this series since 2009, when the 
measure declined 7.2 percent. 

Unit labor costs in the nonfarm business sector increased 4.3 percent in 2020, reflecting increases of 7.0 
percent in hourly compensation and 2.6 percent in productivity. Real hourly compensation, which takes 
into account changes in consumer prices, increased 5.7 percent in 2020. This is the largest annual 
increase in real hourly compensation in the series, which begins in 1947.

In the manufacturing sector, productivity declined 0.2 percent in 2020, reflecting a decrease in output 
of 6.5 percent and a decrease in hours of 6.4 percent. The decrease in output was the largest annual 
decline since a decline of 12.0 percent in 2009. The decline in hours was the largest annual decline since 
a decline of 12.9 percent in 2009.

Manufacturing unit labor costs increased 7.4 percent in 2020. Manufacturing real hourly compensation 
increased 5.9 percent--the largest annual increase in the series, which begins in 1987.
Quarterly and annual data, where available, for all sectors from 2018 to 2020 appear in tables 1-6. Full 
historical measures can be found on the Productivity and Costs home page: www.bls.gov/lpc/#data.
______________

The revised Productivity and Costs news release for fourth-quarter 2020 is scheduled to be 
released on Thursday, March 4, 2021 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 scheduled to be released February 5, 2021. This benchmark will be 
incorporated in our next release on March 4, 2021.
=========================================================================================================================

=========================================================================================================================
						  Upcoming Methodology Change

Beginning with the Productivity and Costs news release scheduled for March 4, 2021, BLS will 
extend methodology improvements made since release of first-quarter 2020 data to the remaining 
seasonally adjusted CPS series used by the major sector labor productivity program. Several prior 
years of hours worked data and related measures will be revised.
Previously, BLS improved seasonal adjustment of CPS data on hours worked by the nonfarm self-
employed and all farm workers to account for extreme values in March and April due to the impact of 
the COVID-19 pandemic. Seasonal adjustment software was updated from X12ARIMA to 
X13ARIMA-SEATS from the U.S. Census Bureau. This same methodology change will be used for 
the remaining seasonally adjusted CPS series beginning with the revised fourth-quarter 2020 data.
=========================================================================================================================


=========================================================================================================================
Table A1. Labor productivity growth and related measures – preliminary fourth-quarter 2020
(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           -4.8          5.3     10.7        1.7            -0.6          6.8
                        A year ago                  2.5         -2.7     -5.0        7.8             6.5          5.2

Business                Previous quarter           -5.4          5.3     11.3        1.1            -1.1          6.8
                        A year ago                  2.5         -2.6     -4.9        7.7             6.4          5.1

Manufacturing           Previous quarter            3.0         11.2      8.0        0.5            -1.7         -2.4
                        A Year ago                  2.1         -3.0     -5.0        8.7             7.4          6.5
 Durable                                        
 manufacturing          Previous quarter            5.3         12.5      6.8        0.1            -2.1         -5.0
                        A year ago                  2.7         -3.6     -6.1        9.0             7.7          6.2
 Nondurable                                     
 manufacturing          Previous quarter            0.0          9.9      9.9        1.7            -0.5          1.7
                        A year ago                  0.8         -2.4     -3.1        8.5             7.2          7.7
=========================================================================================================================


=========================================================================================================================
Table A2. Labor productivity growth and related measures – revised third-quarter 2020
(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
-------------------------------------------------------------------------------------------------------------------------
Nonfinancial         Previous quarter               1.5         34.3     32.3       -2.9            -7.7         -4.4
corporate            A year ago                     0.8         33.3     32.3       -3.0            -7.8         -3.8
=========================================================================================================================


=========================================================================================================================
Table B1. Labor productivity growth and related measures – revised and previously published third-quarter 2020
(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                     5.1         44.1     37.1       -2.2            -7.0         -7.0
                   Previously published             4.6         43.4     37.1       -2.3            -7.1         -6.6
                                                    
Business                Revised                     6.5         44.2     35.5       -1.1            -6.0         -7.1
                   Previously published             6.0         43.6     35.5       -1.2            -6.1         -6.8
                                                    
Manufacturing           Revised                     20.2        56.7     30.4        5.3             0.2        -12.4
                   Previously published             19.9        56.2     30.3        5.3             0.2        -12.1
                                                    
 Durable                Revised                     48.1       101.3     36.0        7.5             2.2        -27.4
 manufacturing     Previously published             47.0        99.8     35.9        7.4             2.2        -26.9
                                                    
 Nondurable             Revised                     0.5         22.4     21.8        0.3            -4.7         -0.3
 manufacturing     Previously published             0.7         22.6     21.8        0.3            -4.7         -0.4
=========================================================================================================================


=========================================================================================================================
Table C1. Labor productivity growth and related measures – annual average changes: 2016-2020


                                                Labor                   Hours    Hourly         Real hourly    Unit labor
Sector                  Year                    productivity   Output   worked   compensation   compensation   costs
-------------------------------------------------------------------------------------------------------------------------
Nonfarm business        2020                        2.6         -4.2    -6.6         7.0             5.7          4.3
                        2019                        1.7          2.5     0.7         3.6             1.8          1.9
                        2018                        1.4          3.5     2.0         3.4             0.9          1.9
                        2017                        1.2          2.8     1.5         3.5             1.3          2.2
                        2016                        0.3          1.8     1.5         1.1            -0.2          0.7
                                                                        
Manufacturing           2020                       -0.2         -6.5    -6.4         7.2             5.9          7.4
                        2019                        0.1          0.0    -0.1         2.9             1.1          2.8
                        2018                        0.4          2.3     1.9         2.1            -0.3          1.7
                        2017                       -0.3          0.7     1.0         3.2             1.1          3.6
                        2016                       -0.2         -0.1     0.0         0.5            -0.8          0.7
=========================================================================================================================



					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 wage and salary workers in 
nonfarm establishments, counting a person who is employed by two or more establishments at each 
place of employment. The CES also provides average weekly paid hours of production and 
nonsupervisory workers in these establishments. Weekly paid hours are adjusted to hours worked 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, weekly paid hours are 
adjusted to hours at work using a combination of NCS and Hours at Work survey data. The Office of 
Productivity and Technology estimates average weekly hours at work for nonproduction and supervisory 
workers using information from the Current Population Survey (CPS), the CES, and the NCS.

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 (https://www.bls.gov/lpc/special_requests/us_total_hrs_emp.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 private 
households (including owner-occupied housing). Corresponding exclusions also are made in labor hours 
worked. Business output accounted for about 78 percent of the value of GDP in 2019. Nonfarm 
business, which excludes farming, accounted for about 77 percent of GDP in 2019.

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 intrasector 
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; private 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 50 percent of the value of GDP in 2019. 


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 private 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 "Technical Information About the Major Sector 
Productivity and Costs Methods" at www.bls.gov/lpc/lpcmethods.pdf.
      
Information in this release will be made available to sensory-impaired individuals upon request. Voice 
phone: 202-691-5200; Federal Relay Service number: 1-800-877-8339.



Table 1. Business sector: Labor productivity, hourly compensation, unit labor costs, and prices,
seasonally adjusted.
                                                          Real
                                               Hourly     hourly                Unit       Implicit
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)

2020 ANNUAL    2.6        -4.1       -6.5        6.9        5.6        4.2       -4.1        0.6  

2020 IV       -5.4         5.3       11.3        1.1       -1.1        6.8       -4.9        1.8  
     III       6.5 r      44.2 r     35.5       -1.1 r     -6.0 r     -7.1 r     24.3 r      4.6 r
     II        9.6       -36.8      -42.4       23.5       28.1       12.7      -24.3       -4.3  
     I         0.0        -6.0       -6.0        9.0        7.7        9.0       -9.2        0.8  

2019 ANNUAL    1.7         2.4        0.7        3.6        1.8        1.9        0.9        1.5  

2019 IV        1.4         2.8        1.4        3.1        0.7        1.7        0.6        1.2  
     III       0.2         2.9        2.7       -0.1       -1.9       -0.3        2.9        1.1  
     II        2.2         1.3       -0.9        1.7       -1.3       -0.5        7.8        3.0  
     I         3.6         3.6        0.0        8.8        7.9        5.0       -5.4        0.4  

2018 ANNUAL    1.6         3.5        1.9        3.4        0.9        1.8        2.7        2.2  

2018 IV        0.7         1.5        0.8        1.5        0.3        0.9        2.2        1.4  
     III       0.1         2.3        2.1        4.7        2.5        4.5       -3.0        1.1  
     II        1.7         3.0        1.3        1.7       -0.5       -0.1        8.4        3.6  
     I         2.9         4.5        1.6        2.7       -0.6       -0.2        5.0        2.0  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2020 ANNUAL    2.6        -4.1       -6.5        6.9        5.6        4.2       -4.1        0.6  

2020 IV        2.5        -2.6       -4.9        7.7        6.4        5.1       -5.1        0.7  
     III       4.3 r      -3.1 r     -7.1        8.2        6.9        3.8 r     -3.7 r      0.5  
     II        2.7       -11.0      -13.3        8.5        8.0        5.7       -8.1       -0.3  
     I         0.9         0.2       -0.8        3.3        1.2        2.4        0.3        1.5  

2019 ANNUAL    1.7         2.4        0.7        3.6        1.8        1.9        0.9        1.5  

2019 IV        1.8         2.6        0.8        3.3        1.3        1.4        1.4        1.4  
     III       1.7         2.3        0.6        2.9        1.1        1.2        1.8        1.5  
     II        1.7         2.2        0.5        4.1        2.3        2.4        0.2        1.5  
     I         1.5         2.6        1.0        4.1        2.5        2.6        0.4        1.6  

2018 ANNUAL    1.6         3.5        1.9        3.4        0.9        1.8        2.7        2.2  

2018 IV        1.3         2.8        1.4        2.6        0.4        1.3        3.1        2.0  
     III       1.3         3.6        2.2        3.4        0.7        2.1        2.7        2.3  
     II        2.0         3.9        1.9        3.7        1.0        1.6        3.7        2.5  
     I         1.6         3.7        2.1        3.9        1.6        2.3        1.3        1.9  
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2020 ANNUAL  111.0       116.6      105.0      128.5      113.8      115.7      104.6      110.9  

2020 IV      111.4       119.6      107.4      130.3      114.4      117.0      104.5      111.5  
     III     112.9 r     118.1 r    104.5 r    130.0 r    114.8 r    115.1 r    105.8 r    111.0 r
     II      111.2       107.7       96.9      130.3      116.6      117.2      100.2      109.8  
     I       108.7       120.8      111.2      123.6      109.6      113.8      107.4      111.0  

2019 ANNUAL  108.2       121.6      112.3      120.2      107.8      111.1      109.0      110.2  

2019 IV      108.7       122.7      113.0      121.0      107.6      111.4      110.1      110.8  
     III     108.3       121.9      112.6      120.1      107.4      110.9      109.9      110.4  
     II      108.3       121.0      111.8      120.1      107.9      111.0      109.1      110.2  
     I       107.7       120.6      112.1      119.6      108.3      111.1      107.1      109.4  

2018 ANNUAL  106.4       118.7      111.5      116.0      105.9      109.0      108.0      108.6  

2018 IV      106.7       119.6      112.1      117.1      106.2      109.8      108.6      109.3  
     III     106.5       119.1      111.8      116.7      106.2      109.5      108.0      108.9  
     II      106.5       118.5      111.3      115.4      105.5      108.3      108.8      108.5  
     I       106.0       117.6      110.9      114.9      105.6      108.3      106.7      107.6  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   February 4, 2021
r=revised                                                        Source: Bureau of Labor Statistics



Table 2. Nonfarm business sector: Labor productivity, hourly compensation, unit labor costs, and
prices, seasonally adjusted.
                                                          Real
                                               Hourly     hourly                Unit       Implicit
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)

2020 ANNUAL    2.6        -4.2       -6.6        7.0        5.7        4.3       -4.1        0.7  

2020 IV       -4.8         5.3       10.7        1.7       -0.6        6.8       -6.3        1.2  
     III       5.1 r      44.1 r     37.1       -2.2 r     -7.0 r     -7.0 r     23.1 r      4.3 r
     II       10.6       -36.8      -42.9       24.3       28.8       12.3      -22.7       -3.6  
     I        -0.3        -6.4       -6.1        9.2        7.9        9.6       -9.8        0.8  

2019 ANNUAL    1.7         2.5        0.7        3.6        1.8        1.9        1.1        1.5  

2019 IV        1.6         2.8        1.2        3.3        0.9        1.7        0.6        1.2  
     III       0.3         2.9        2.6       -0.2       -2.0       -0.4        2.9        1.0  
     II        2.0         1.2       -0.7        1.4       -1.6       -0.6        8.0        3.0  
     I         3.7         3.8        0.1        8.7        7.7        4.8       -5.2        0.4  

2018 ANNUAL    1.4         3.5        2.0        3.4        0.9        1.9        2.7        2.2  

2018 IV        0.8         1.4        0.7        1.8        0.5        1.0        1.9        1.4  
     III       0.5         2.3        1.8        5.1        2.9        4.5       -2.4        1.4  
     II        1.1         3.0        1.8        1.3       -0.9        0.2        8.3        3.6  
     I         2.3         4.3        2.0        2.2       -1.0        0.0        4.9        2.1  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2020 ANNUAL    2.6        -4.2       -6.6        7.0        5.7        4.3       -4.1        0.7  

2020 IV        2.5        -2.7       -5.0        7.8        6.5        5.2       -5.3        0.6  
     III       4.2 r      -3.2 r     -7.1        8.2        6.9 r      3.9 r     -3.6        0.6 r
     II        2.9       -11.1      -13.6        8.8        8.3        5.7       -7.8       -0.2  
     I         0.9         0.1       -0.8        3.4        1.2        2.5        0.2        1.5  

2019 ANNUAL    1.7         2.5        0.7        3.6        1.8        1.9        1.1        1.5  

2019 IV        1.9         2.7        0.8        3.3        1.2        1.4        1.4        1.4  
     III       1.7         2.3        0.6        2.9        1.1        1.2        1.8        1.4  
     II        1.7         2.2        0.4        4.2        2.3        2.4        0.5        1.6  
     I         1.5         2.6        1.1        4.2        2.5        2.6        0.5        1.7  

2018 ANNUAL    1.4         3.5        2.0        3.4        0.9        1.9        2.7        2.2  

2018 IV        1.2         2.7        1.6        2.6        0.4        1.4        3.1        2.1  
     III       1.3         3.6        2.2        3.5        0.8        2.2        2.7        2.4  
     II        1.8         3.9        2.1        3.5        0.8        1.7        3.7        2.6  
     I         1.5         3.7        2.2        3.8        1.6        2.3        1.4        1.9  
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2020 ANNUAL  110.7       116.2      105.0      128.7      114.0      116.3      105.5      111.6  

2020 IV      111.1       119.2      107.3      130.6      114.7      117.6      105.1      112.1  
     III     112.5 r     117.7 r    104.6 r    130.1 r    114.8 r    115.6 r    106.8 r    111.8 r
     II      111.1       107.4       96.7      130.8      116.9      117.7      101.4      110.6  
     I       108.3       120.5      111.2      123.9      109.8      114.4      108.2      111.7  

2019 ANNUAL  107.9       121.3      112.4      120.4      107.9      111.5      110.0      110.8  

2019 IV      108.4       122.5      113.0      121.2      107.7      111.8      111.0      111.4  
     III     108.0       121.6      112.7      120.2      107.5      111.3      110.8      111.1  
     II      107.9       120.8      111.9      120.2      108.0      111.4      110.1      110.8  
     I       107.4       120.4      112.1      119.8      108.4      111.6      108.0      110.0  

2018 ANNUAL  106.1       118.4      111.6      116.2      106.0      109.5      108.8      109.2  

2018 IV      106.4       119.3      112.1      117.3      106.4      110.3      109.4      109.9  
     III     106.2       118.9      111.9      116.8      106.3      110.0      108.9      109.5  
     II      106.1       118.2      111.4      115.4      105.5      108.8      109.6      109.1  
     I       105.8       117.3      110.9      115.0      105.8      108.8      107.4      108.2  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   February 4, 2021
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)

2020 ANNUAL       -0.2           -6.5           -6.4            7.2            5.9            7.4  

2020 IV            3.0           11.2            8.0            0.5           -1.7           -2.4  
     III          20.2 r         56.7 r         30.4 r          5.3            0.2          -12.4 r
     II          -13.7 r        -46.4 r        -37.8           24.5           29.0           44.3 r
     I             1.6           -5.5           -7.0            6.0            4.7            4.3  

2019 ANNUAL        0.1            0.0           -0.1            2.9            1.1            2.8  

2019 IV           -0.7           -0.2            0.5            5.2            2.8            6.0  
     III          -0.5            0.9            1.4           -1.9           -3.7           -1.4  
     II           -2.3           -3.1           -0.9            1.4           -1.6            3.8  
     I             1.3           -1.7           -3.1            6.9            6.0            5.5  

2018 ANNUAL        0.4            2.3            1.9            2.1           -0.3            1.7  

2018 IV            0.9            1.6            0.6            3.4            2.1            2.4  
     III           0.3            4.0            3.7            3.6            1.5            3.3  
     II            1.3            2.6            1.3           -3.4           -5.5           -4.7  
     I             0.0            1.9            1.9            2.5           -0.8            2.5  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2020 ANNUAL       -0.2           -6.5           -6.4            7.2            5.9            7.4  

2020 IV            2.1           -3.0           -5.0            8.7            7.4            6.5  
     III           1.1 r         -5.6 r         -6.7           10.0            8.6            8.7 r
     II           -3.5 r        -15.5          -12.4            8.0            7.5           12.0 r
     I            -0.5           -2.0           -1.5            2.6            0.5            3.1  

2019 ANNUAL        0.1            0.0           -0.1            2.9            1.1            2.8  

2019 IV           -0.6           -1.1           -0.5            2.9            0.8            3.4  
     III          -0.1           -0.6           -0.5            2.4            0.6            2.5  
     II            0.1            0.1            0.1            3.8            2.0            3.7  
     I             1.0            1.6            0.6            2.6            0.9            1.6  

2018 ANNUAL        0.4            2.3            1.9            2.1           -0.3            1.7  

2018 IV            0.6            2.5            1.9            1.5           -0.7            0.8  
     III           1.2            3.4            2.2            1.9           -0.8            0.6  
     II           -0.2            1.7            2.0            1.6           -1.1            1.8  
     I            -0.1            1.5            1.6            3.6            1.4            3.7  
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2020 ANNUAL       98.6           98.2           99.6          123.9          109.7          125.6  

2020 IV          100.5          101.7          101.3          126.6          111.2          126.0  
     III          99.7 r         99.1 r         99.3 r        126.4 r        111.6 r        126.8 r
     II           95.2 r         88.5 r         93.0          124.8          111.6          131.0 r
     I            98.8          103.5          104.7          118.1          104.7          119.5  

2019 ANNUAL       98.8          105.1          106.4          115.5          103.5          117.0  

2019 IV           98.4          104.9          106.6          116.4          103.5          118.3  
     III          98.6          105.0          106.5          115.0          102.8          116.6  
     II           98.7          104.7          106.1          115.5          103.8          117.0  
     I            99.3          105.6          106.3          115.1          104.2          115.9  

2018 ANNUAL       98.7          105.0          106.4          112.2          102.4          113.8  

2018 IV           99.0          106.0          107.1          113.2          102.7          114.4  
     III          98.7          105.6          107.0          112.3          102.1          113.7  
     II           98.7          104.6          106.0          111.3          101.8          112.8  
     I            98.3          103.9          105.7          112.2          103.2          114.2  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   February 4, 2021
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)

2020 ANNUAL       -1.3           -8.7           -7.5            7.6            6.3            8.9  

2020 IV            5.3           12.5            6.8            0.1           -2.1           -5.0  
     III          48.1 r        101.3 r         36.0 r          7.5 r          2.2          -27.4 r
     II          -26.8 r        -57.7 r        -42.3           25.6           30.2           71.6 r
     I            -2.6           -9.8           -7.4            4.5            3.2            7.3  

2019 ANNUAL        0.6            0.8            0.2            2.4            0.5            1.7  

2019 IV           -1.1           -1.5           -0.4            8.0            5.5            9.2  
     III           0.4            1.5            1.1           -3.2           -4.9           -3.6  
     II           -0.7           -2.3           -1.6            0.4           -2.5            1.1  
     I             0.3           -2.7           -3.0            6.9            5.9            6.6  

2018 ANNUAL        1.2            3.5            2.2            2.7            0.2            1.4  

2018 IV            1.8            4.9            3.1            1.5            0.3           -0.3  
     III           2.5            6.2            3.6            3.3            1.2            0.8  
     II            0.7            2.7            2.0           -2.8           -4.9           -3.5  
     I             1.4            4.6            3.1            2.7           -0.6            1.3  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2020 ANNUAL       -1.3           -8.7           -7.5            7.6            6.3            8.9  

2020 IV            2.7           -3.6           -6.1            9.0            7.7            6.2  
     III           1.1 r         -6.8 r         -7.7 r         11.1            9.7            9.9 r
     II           -8.3          -21.4 r        -14.3            8.2            7.8           18.0 r
     I            -1.0           -3.1           -2.1            2.4            0.2            3.4  

2019 ANNUAL        0.6            0.8            0.2            2.4            0.5            1.7  

2019 IV           -0.3           -1.3           -1.0            2.9            0.9            3.2  
     III           0.5            0.3           -0.1            1.4           -0.4            0.9  
     II            1.0            1.4            0.5            3.0            1.2            2.0  
     I             1.3            2.7            1.4            2.2            0.5            0.8  

2018 ANNUAL        1.2            3.5            2.2            2.7            0.2            1.4  

2018 IV            1.6            4.6            2.9            1.1           -1.0           -0.4  
     III           2.1            4.6            2.5            2.4           -0.2            0.3  
     II            0.3            2.5            2.2            2.2           -0.4            1.9  
     I             0.9            2.1            1.2            4.9            2.6            4.0  
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2020 ANNUAL       99.4           97.9           98.6          124.8          110.5          125.6  

2020 IV          103.1          103.2          100.1          127.8          112.3          124.0  
     III         101.8 r        100.2 r         98.4 r        127.8 r        112.9 r        125.6 r
     II           92.3 r         84.1 r         91.1          125.5          112.3          136.0 r
     I            99.8          104.3          104.5          118.6          105.1          118.9  

2019 ANNUAL      100.6          107.3          106.6          116.0          104.0          115.3  

2019 IV          100.4          107.0          106.6          117.3          104.3          116.8  
     III         100.7          107.4          106.7          115.1          102.9          114.2  
     II          100.6          107.0          106.4          116.0          104.2          115.3  
     I           100.8          107.7          106.8          115.9          104.8          115.0  

2018 ANNUAL      100.0          106.5          106.4          113.4          103.5          113.3  

2018 IV          100.7          108.4          107.6          113.9          103.3          113.2  
     III         100.3          107.1          106.8          113.5          103.3          113.2  
     II           99.6          105.5          105.9          112.6          103.0          113.0  
     I            99.5          104.8          105.4          113.4          104.3          114.0  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   February 4, 2021
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)

2020 ANNUAL        0.2           -4.2           -4.4            7.0            5.7            6.7  

2020 IV            0.0            9.9            9.9            1.7           -0.5            1.7  
     III           0.5 r         22.4 r         21.8            0.3           -4.7           -0.3 r
     II           -3.3 r        -32.1 r        -29.8           24.7           29.2           29.0 r
     I             6.1           -0.7           -6.4            9.0            7.7            2.7  

2019 ANNUAL       -0.4           -0.9           -0.5            3.9            2.1            4.3  

2019 IV           -0.8            1.2            2.1            0.2           -2.1            1.1  
     III          -1.8            0.2            2.0            0.7           -1.1            2.4  
     II           -4.4           -4.0            0.5            3.7            0.6            8.5  
     I             2.5           -0.7           -3.2            7.0            6.0            4.3  

2018 ANNUAL       -0.6            0.8            1.4            1.0           -1.4            1.6  

2018 IV            1.5           -1.9           -3.3            6.4            5.1            4.8  
     III          -2.2            1.6            3.9            4.3            2.2            6.7  
     II            2.1            2.3            0.1           -4.8           -6.8           -6.8  
     I            -1.2           -1.2            0.0            1.7           -1.5            3.0  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2020 ANNUAL        0.2           -4.2           -4.4            7.0            5.7            6.7  

2020 IV            0.8           -2.4           -3.1            8.5            7.2            7.7  
     III           0.6 r         -4.4 r         -4.9            8.1            6.8            7.5 r
     II            0.0 r         -9.1 r         -9.0            8.2            7.7            8.2 r
     I            -0.3           -0.8           -0.5            3.3            1.2            3.6  

2019 ANNUAL       -0.4           -0.9           -0.5            3.9            2.1            4.3  

2019 IV           -1.2           -0.8            0.3            2.8            0.8            4.0  
     III          -0.6           -1.6           -1.0            4.4            2.6            5.0  
     II           -0.7           -1.3           -0.6            5.3            3.4            6.1  
     I             1.0            0.3           -0.7            3.1            1.5            2.1  

2018 ANNUAL       -0.6            0.8            1.4            1.0           -1.4            1.6  

2018 IV            0.0            0.2            0.1            1.8           -0.4            1.8  
     III           0.2            1.8            1.6            0.7           -1.9            0.5  
     II           -1.0            0.6            1.6            0.3           -2.4            1.3  
     I            -1.7            0.6            2.3            1.2           -1.0            2.9  
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2020 ANNUAL       98.1           99.3          101.3          122.4          108.4          124.8  

2020 IV           97.9          101.1          103.3          124.6          109.4          127.2  
     III          97.9 r         98.8 r        100.9          124.0          109.5          126.7 r
     II           97.8 r         93.9 r         96.0          124.0          110.8          126.7 r
     I            98.6          103.5          104.9          117.3          104.0          118.9  

2019 ANNUAL       97.8          103.6          106.0          114.4          102.6          117.0  

2019 IV           97.2          103.7          106.7          114.8          102.0          118.1  
     III          97.4          103.3          106.1          114.7          102.6          117.8  
     II           97.8          103.3          105.6          114.6          102.9          117.1  
     I            98.9          104.3          105.5          113.5          102.7          114.8  

2018 ANNUAL       98.2          104.5          106.5          110.1          100.5          112.1  

2018 IV           98.3          104.5          106.3          111.6          101.2          113.5  
     III          98.0          105.0          107.2          109.9          100.0          112.2  
     II           98.5          104.6          106.2          108.8           99.5          110.4  
     I            98.0          104.0          106.2          110.1          101.2          112.4  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   February 4, 2021
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.
                                                     Real
                                           Hourly    hourly            Unit      Total           Implicit
Year         Labor                         compen-   compen-   Unit    nonlabor  unit    Unit    price
and          produc-             Hours     sation    sation    labor   costs     costs   profits deflator
quarter      tivity    Output    worked    (1)       (2)       costs   (6)       (7)     (8)     (4)
---------------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate (5)

2020 III       1.5 r    34.3 r   32.3      -2.9 r    -7.7 r    -4.4 r  -26.2 r  -10.6 r  222.7 r    4.8  
     II        4.8     -38.3    -41.1      30.7      35.4      24.7    -49.2     -4.0     -6.7     -4.3  
     I         0.2      -4.0     -4.2       8.1       6.8       7.9     10.3      8.7    -44.1      0.6  

2019 ANNUAL    0.6       1.6      0.9       3.7       1.9       3.1      1.9      2.7     -3.3      1.9  

2019 IV        1.3       2.6      1.2       2.5       0.1       1.2     -2.3      0.1     12.4      1.5  
     III      -0.8      -0.1      0.7       0.0      -1.7       0.9      6.6      2.6     -5.3      1.6  
     II        1.0       1.0      0.1       1.3      -1.7       0.3      1.5      0.7     16.1      2.4  
     I         1.4       2.9      1.5      11.1      10.1       9.5      3.3      7.5    -30.8      1.7  

2018 ANNUAL    0.6       2.6      1.9       3.5       1.0       2.8     -1.0      1.6      6.2      2.2  

2018 IV       -0.3       0.2      0.5       1.3       0.0       1.7      2.4      1.9      2.2      1.9  
     III       2.5       3.7      1.1       3.2       1.0       0.6     -1.9     -0.2     15.1      1.7  
     II       -2.2       0.2      2.5       0.1      -2.0       2.4     -0.2      1.6     15.2      3.2  
     I         4.7       6.7      1.8       8.6       5.1       3.7     -4.2      1.1      8.0      1.9  
---------------------------------------------------------------------------------------------------------
                       Percent change from corresponding quarter of previous year

2020 III       1.9 r    -5.0 r   -6.8       8.9       7.5       6.8 r  -20.3 r   -1.7     17.3 r    0.6  
     II        1.3     -11.8    -12.9       9.7       9.2       8.3    -12.6      1.7    -13.7     -0.2  
     I         0.4      -0.2     -0.6       2.9       0.8       2.5      3.9      3.0     -8.9      1.5  

2019 ANNUAL    0.6       1.6      0.9       3.7       1.9       3.1      1.9      2.7     -3.3      1.9  

2019 IV        0.7       1.6      0.9       3.6       1.6       2.9      2.2      2.7     -3.9      1.8  
     III       0.3       1.0      0.7       3.3       1.6       3.0      3.4      3.1     -6.1      1.9  
     II        1.1       1.9      0.8       4.1       2.3       2.9      1.3      2.4     -1.4      1.9  
     I         0.3       1.7      1.4       3.8       2.2       3.5      0.9      2.7     -1.6      2.1  

2018 ANNUAL    0.6       2.6      1.9       3.5       1.0       2.8     -1.0      1.6      6.2      2.2  

2018 IV        1.1       2.6      1.5       3.2       1.0       2.1     -1.0      1.1     10.0      2.2  
     III       1.0       3.0      2.0       3.6       0.9       2.6     -1.8      1.2     10.1      2.3  
     II       -0.2       1.9      2.1       3.5       0.8       3.7     -0.8      2.2      3.2      2.4  
     I         0.7       2.9      2.2       3.7       1.4       3.0     -0.3      1.9      1.4      1.9  
---------------------------------------------------------------------------------------------------------
                                            Indexes 2012=100

2020 III     104.5 r   110.8 r  106.0     130.8 r   115.5 r   125.2 r   86.3 r  112.3 r  111.3 r  112.1 r
     II      104.1     102.9     98.9     131.8     117.8     126.6     93.1    115.5     83.1    110.8  
     I       102.9     116.1    112.9     123.3     109.2     119.8    110.3    116.7     84.5    112.1  

2019 ANNUAL  102.6     116.7    113.7     120.2     107.8     117.2    107.1    113.8     95.4    111.2  

2019 IV      102.8     117.3    114.1     120.9     107.4     117.6    107.6    114.3     97.8    111.9  
     III     102.5     116.6    113.7     120.1     107.4     117.2    108.2    114.2     95.0    111.5  
     II      102.7     116.6    113.6     120.1     107.9     117.0    106.5    113.5     96.3    111.0  
     I       102.4     116.3    113.5     119.7     108.4     116.9    106.1    113.3     92.7    110.4  

2018 ANNUAL  102.0     114.9    112.7     115.9     105.8     113.7    105.1    110.8     98.7    109.1  

2018 IV      102.1     115.5    113.1     116.6     105.8     114.3    105.3    111.3    101.7    109.9  
     III     102.2     115.4    113.0     116.3     105.8     113.8    104.7    110.8    101.1    109.4  
     II      101.5     114.4    112.7     115.4     105.5     113.6    105.2    110.8     97.6    108.9  
     I       102.1     114.3    112.0     115.3     106.0     112.9    105.2    110.4     94.2    108.1  
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                         February 4, 2021
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.

RELIABILITY: Productivity and cost measures are regularly revised as more complete information 
becomes available.  The measures are first published within 40 days of the close of the reference period; 
revisions appear 30 days later, and second revisions after an additional 60 days.  In the business sector, 
the third publication (second revision) of a quarterly index of output per hour of all persons has differed 
from the initial value by between -1.4 and 1.4 index points approximately 95 percent of the time. This 
interval is based on the performance of this measure between the fourth quarter of 1995 and the third 
quarter of 2020.

					     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 1978-2019 is based on the Consumer Price Index research 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 04, 2021