Internet address: http://www.bls.gov/lpc/ USDL 08-0171
Historical, technical TRANSMISSION OF THIS
information: (202) 691-5606 MATERIAL IS EMBARGOED
Current data: (202) 691-5200 UNTIL 8:30 A.M. EST,
Media contact: (202) 691-5902 WEDNESDAY, FEBRUARY 6, 2008
PRODUCTIVITY AND COSTS
Preliminary Fourth Quarter and
Annual Averages for 2007
The Bureau of Labor Statistics of the U.S. Department of Labor today
reported preliminary productivity data--as measured by output per hour of all
persons--for the fourth quarter and for the full year 2007. The seasonally
adjusted annual rates of productivity change in the fourth quarter and the
annual average changes were:
Fourth Annual averages
quarter 2006-2007
Business sector 0.6 1.6
Nonfarm business sector 1.8 1.6
In the fourth quarter of 2007, productivity increased 0.6 percent in the
business sector, with output increasing 0.2 percent and hours decreasing 0.5
percent. In the nonfarm business sector, productivity rose 1.8 percent as
output grew 0.4 percent and hours fell 1.5 percent. When the annual averages
for 2007 were compared with annual averages for 2006, productivity rose 1.6
percent in the business and nonfarm business sectors--slightly more than the
1.0 percent gain in both sectors from 2005 to 2006.
In the manufacturing sector, increases in productivity were:
Fourth Annual averages
quarter 2006-2007
Manufacturing sector 2.5 2.9
Durable goods manufacturing 4.6 4.3
Nondurable goods manufacturing -0.9 1.1
Manufacturing productivity grew at a 2.5 percent annual rate in the
fourth quarter, as output fell but hours fell faster. On an annual average
basis, output per hour in the manufacturing sector posted a 2.9 percent
increase in 2007. Output and hours in manufacturing, which includes about 12
percent of U.S. business-sector employment, tend to vary more from quarter to
quarter than data for the aggregate business and nonfarm business sectors.
Fourth-quarter productivity and related measures are summarized in table A,
and annual average data in table B. Detailed information is presented in
tables 1 through 5.
=============================================================================
The data in this release do not reflect the annual benchmark revision of the
BLS Current Employment Statistics program data released on February 1, 2008.
This benchmark will be incorporated in our next release on March 5, 2008.
=============================================================================
------------------------------------------------------------------------------
Table A. Productivity and costs: Preliminary fourth-quarter 2007 measures
(Seasonally adjusted annual rates)
------------------------------------------------------------------------------
Real
Hourly hourly Unit
Produc- compen- compen- labor
Sector tivity Output Hours sation sation costs
------------------------------------------------------------------------------
Percent change from preceding quarter
Business 0.6 0.2 -0.5 2.8 -1.4 2.2
Nonfarm business 1.8 0.4 -1.5 3.9 -0.3 2.1
Manufacturing 2.5 -1.9 -4.3 4.2 -0.1 1.7
Durable 4.6 -1.5 -5.9 5.2 0.9 0.6
Nondurable -0.9 -2.4 -1.5 2.6 -1.6 3.5
Percent change from same quarter a year ago
Business 2.7 2.6 -0.1 3.8 -0.2 1.1
Nonfarm business 2.6 2.6 0.0 3.7 -0.3 1.0
Manufacturing 2.6 1.8 -0.8 3.1 -0.9 0.5
Durable 4.1 2.8 -1.3 3.1 -0.9 -1.0
Nondurable 0.7 0.7 0.0 3.3 -0.7 2.6
------------------------------------------------------------------------------
The data sources and methods used in the preparation of the
manufacturing series differ from those used in preparing the business and
nonfarm business series, and these measures are not directly comparable.
Output measures for business and nonfarm business are based on measures of
gross domestic product prepared by the Bureau of Economic Analysis of the
U.S. Department of Commerce. Quarterly output measures for manufacturing
reflect indexes of industrial production independently prepared by the Board
of Governors of the Federal Reserve System. See Technical Notes for further
information on data sources.
THIRD-TO-FOURTH QUARTER CHANGES, 2007
Business
Productivity in the business sector increased by 0.6 percent in the
fourth quarter of 2007, reflecting an increase of 0.2 percent in output and a
decrease of 0.5 percent in hours of all persons (seasonally adjusted annual
rates). Output per hour had risen 6.5 percent in the third quarter of 2007,
as output rose 5.7 percent and hours fell 0.7 percent. When the fourth
quarter of 2007 is compared to the fourth quarter of 2006, business sector
productivity grew 2.7 percent--the same as the average rate of growth for the
2000-2006 period.
Hourly compensation grew 2.8 percent in the fourth quarter of 2007, down
from a 4.4 percent increase one quarter earlier. This measure includes wages
and salaries, supplements, employer contributions to employee-benefit plans,
and taxes. Real hourly compensation, which takes into account changes in
consumer prices, decreased 1.4 percent in the fourth quarter of 2007.
Consumer prices increased at a 4.3 percent annual rate in the fourth quarter
of 2007, contributing to the decline in real hourly compensation.
Unit labor costs, which relate hourly compensation to output per hour,
increased 2.2 percent in the fourth quarter of 2007 after falling 2.0 percent
in the third quarter and 1.1 percent in the second quarter.
Nonfarm business
In the nonfarm business sector, productivity rose 1.8 percent in the
fourth quarter of 2007, as output grew 0.4 percent and hours of all persons--
employees, proprietors, and unpaid family workers--fell 1.5 percent
(seasonally adjusted annual rates). Productivity grew 6.0 percent in the
third quarter of 2007 as output rose 5.6 percent and hours fell 0.3 percent
(table 2). During the four-quarter period ending with the fourth quarter of
2007, nonfarm business sector productivity grew 2.6 percent--similar to the
2.7 percent average rate of growth from 2000 to 2006.
Hourly compensation in the nonfarm business sector rose 3.9 percent in
the fourth quarter of 2007 following a 4.0 percent increase in the third
quarter. When the 4.3 percent increase in consumer prices was taken into
account, real hourly compensation edged down 0.3 percent during the fourth
quarter of 2007 (seasonally-adjusted annual rates).
Unit labor costs rose 2.1 percent in the fourth quarter of 2007, after
declining 1.9 percent in the third quarter and 1.1 percent the second
quarter. The implicit price deflator for nonfarm business output rose 1.6
percent in the fourth quarter after rising 0.1 percent one quarter earlier.
Manufacturing
Manufacturing productivity grew 2.5 percent in the fourth quarter of
2007 as output declined 1.9 percent and hours dropped 4.3 percent (seasonally
adjusted annual rates). The decrease in hours was the largest since the
third quarter of 2003, when hours fell 6.0 percent. In the third quarter of
2007, manufacturing productivity increased 4.0 percent, reflecting a 3.9
percent rise in output and a 0.1 percent decrease in hours (table 3). In the
durable goods manufacturing sector, productivity rose 4.6 percent in the
fourth quarter of 2007, as output declined 1.5 percent and hours fell 5.9
percent (table 4). In the nondurable goods sector, productivity, output and
hours all fell in the fourth quarter; output per hour declined 0.9 percent,
output decreased 2.4 percent and hours declined 1.5 percent (table 5).
Hourly compensation of all manufacturing workers increased 4.2 percent
during the fourth quarter of 2007, reflecting increases of 5.2 percent in
durable goods industries and 2.6 percent in nondurable goods industries.
When the increase in consumer prices was taken into account, real hourly
compensation in total manufacturing decreased 0.1 percent in the fourth
quarter.
Unit labor costs for the manufacturing sector rose 1.7 percent in
fourth-quarter 2007 following declines of 2.9 percent in the third quarter
and 3.7 percent in the second quarter. Unit labor costs rose 0.6 percent in
durable goods manufacturing and 3.5 percent in nondurable goods industries in
the fourth quarter.
ANNUAL AVERAGE CHANGES, 2006-2007
Business and Nonfarm business
When annual averages for 2007 were compared with annual averages for
2006, labor productivity increased 1.6 percent in both the business and
nonfarm business sectors (table B). Productivity grew at 1.0 percent in
both sectors from 2005 to 2006. From 2000 to 2005, output per hour grew at
an average annual rate of 3.1 percent in the business sector and 3.0 percent
in the nonfarm business sector. Between 1990 and 2000, productivity rose 2.1
percent per year in the business sector and 2.0 percent per year in nonfarm
businesses.
------------------------------------------------------------------------------
Table B. Annual average changes in productivity and related measures, 1998-
2007
------------------------------------------------------------------------------
Measure 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
------------------------------------------------------------------------------
Business:
Productivity 2.8 3.1 2.9 2.6 4.1 3.8 2.9 2.0 1.0 1.6
Output 4.8 5.1 3.9 0.3 1.5 3.1 4.2 3.6 3.1 2.3
Hours 2.0 2.0 1.0 -2.2 -2.5 -0.7 1.3 1.6 2.1 0.7
Hourly
compensation 6.1 4.9 7.1 4.2 3.5 4.1 3.7 4.0 3.9 4.8
Real hourly
compensation 4.6 2.7 3.7 1.4 1.9 1.7 1.1 0.6 0.6 1.9
Unit labor
costs 3.2 1.8 4.1 1.6 -0.5 0.2 0.9 2.0 2.9 3.1
------------------------------------------------------------------------------
Nonfarm Business:
Productivity 2.8 2.9 2.8 2.5 4.1 3.7 2.7 1.9 1.0 1.6
Output 5.0 5.2 3.8 0.4 1.5 3.1 4.1 3.6 3.2 2.3
Hours 2.1 2.2 1.0 -2.0 -2.6 -0.6 1.4 1.6 2.2 0.7
Hourly
compensation 6.0 4.7 7.2 4.0 3.6 4.0 3.6 4.0 3.9 4.8
Real hourly
compensation 4.5 2.5 3.7 1.2 2.0 1.7 0.9 0.7 0.6 1.8
Unit labor
costs 3.1 1.8 4.2 1.5 -0.5 0.3 0.9 2.0 2.9 3.1
------------------------------------------------------------------------------
Manufacturing:
Productivity 5.4 4.4 4.1 1.6 6.9 6.2 2.1 4.8 4.0 2.9
Output 5.2 3.8 2.7 -5.1 -0.7 1.0 1.8 3.5 4.9 2.0
Hours -0.2 -0.6 -1.3 -6.5 -7.1 -4.9 -0.3 -1.2 0.9 -1.0
Hourly
compensation 5.8 3.9 9.2 2.3 7.3 7.0 2.0 4.2 2.5 4.6
Real hourly
compensation 4.4 1.8 5.7 -0.5 5.6 4.7 -0.6 0.8 -0.8 1.7
Unit labor
costs 0.4 -0.5 4.9 0.7 0.3 0.8 -0.1 -0.6 -1.5 1.6
------------------------------------------------------------------------------
In 2007, hourly compensation increased 4.8 percent in both the business
and nonfarm business sectors, following 3.9 percent gains in both sectors
during 2006. Real hourly compensation increased 1.9 percent in the business
sector and 1.8 percent in the nonfarm business sector during 2007 and 0.6
percent in both sectors during 2006.
Unit labor costs increased 3.1 percent in both the business and nonfarm
sectors in 2007--more than in any year since 2000, when unit labor costs
increased 4.1 percent and 4.2 percent in the business and nonfarm business
sectors, respectively.
Manufacturing
In manufacturing, labor productivity rose 2.9 percent in 2007, less than
the 4.2 percent average annual rate from 2000 through 2006. Output increased
2.0 percent and hours decreased 1.0 percent in 2007 (table B). There was a
4.3 percent increase in durable goods manufacturing productivity in 2007, as
output rose 2.9 percent and hours fell 1.4 percent. In nondurable goods
manufacturing, output per hour increased 1.1 percent; output rose 0.9 percent
and hours edged down 0.2 percent.
The hourly compensation of manufacturing workers increased 4.6 percent
in 2007, slightly more than the average annual growth rate of 4.2 percent for
the 2000-2006 time period. In 2007, hourly compensation rose 4.9 percent in
durable goods manufacturing and 4.1 percent in nondurable goods
manufacturing. Taking into account the rise in consumer prices, real hourly
compensation in total manufacturing rose 1.7 percent in 2007 after decreasing
0.8 percent the previous year.
Unit labor costs in manufacturing increased 1.6 percent in 2007, a
reversal from the 1.5 percent decline in 2006. In the durable goods
manufacturing sector unit labor costs edged up 0.6 percent in 2007 following
a 2.9 percent decline in 2006. Unit labor costs in nondurable goods
industries rose 3.0 percent in 2007 after declining 0.5 percent in 2006.
Revised Measures
Current and previous measures for the third quarter of 2007 for the
business, nonfarm business, and manufacturing sectors are compared in table
C. In both the business and nonfarm business sectors, productivity growth
was lower than reported on Dec. 5. In the business sector, productivity
growth was revised down from 6.7 percent to 6.5 percent due to an upward
revision to hours; output was unchanged. Nonfarm business sector
productivity was also revised down--from 6.3 percent to 6.0 percent--
reflecting both a downward revision to output and an upward revision to
hours.
In both the business and nonfarm business sectors, hourly compensation
grew less than previously reported. Unit labor costs were similar to those
previously reported for both the business and nonfarm business sectors, as
downward revisions to productivity were coupled with downward revisions to
hourly compensation.
------------------------------------------------------------------------------
Table C. Previous and revised productivity and related measures
Quarterly percent change at seasonally adjusted annual rate
------------------------------------------------------------------------------
Real
Hourly hourly Unit
Produc- compen- compen- labor
Sector tivity Output Hours sation sation costs
------------------------------------------------------------------------------
Third quarter 2007
Business:
Previous 6.7 5.7 -1.0 4.7 2.7 -2.0
Revised 6.5 5.7 -0.7 4.4 2.4 -2.0
Nonfarm business:
Previous 6.3 5.7 -0.6 4.2 2.3 -2.0
Revised 6.0 5.6 -0.3 4.0 2.0 -1.9
Manufacturing:
Previous 5.0 4.5 -0.5 1.5 -0.3 -3.3
Revised 4.0 3.9 -0.1 1.0 -0.8 -2.9
------------------------------------------------------------------------------
In the manufacturing sector productivity was revised down in the third
quarter, reflecting a downward revision to output and an upward revision to
hours. Unit labor costs fell less than previously reported as the downward
revision to productivity was partially offset by a downward revision to
hourly compensation.
Revised measures: Nonfinancial Corporations
Revised third-quarter productivity and costs measures for nonfinancial
corporations also were announced today. In the third quarter of 2007,
productivity grew less than reported on Dec. 5, reflecting a small
downward revision to output and a slightly larger upward revision to hours.
Unit labor costs were revised up as the downward revision to productivity was
larger than the downward revision to hourly compensation (table D).
------------------------------------------------------------------------------
Table D. Nonfinancial corporations: Previous and revised productivity and
cost measures
Quarterly percent changes at seasonally adjusted annual rates
------------------------------------------------------------------------------
Real
Hourly hourly Unit Implicit
Produc- compen- compen- labor Unit price
tivity Output Hours sation sation costs profits deflator
------------------------------------------------------------------------------
Third quarter 2007
Previous 4.2 4.7 0.5 4.4 2.5 0.2 -10.1 -1.5
Revised 3.7 4.6 0.8 4.1 2.2 0.4 -11.0 -1.6
------------------------------------------------------------------------------
Next release date
The next release of Productivity and Costs is scheduled for 8:30 A.M.
EST, Wednesday, March 5, 2008. Revised fourth-quarter and annual average
measures for business, nonfarm business, and manufacturing will be released
at that time. This release will incorporate the annual benchmark revision to
the employment levels in the BLS establishment survey data that were released
February 1. All employment and hours series will incorporate new information
on seasonal patterns.
TECHNICAL NOTES
Labor Hours: Hours data for the labor productivity and cost measures include
hours 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. The CES also provides average weekly paid
hours of production and nonsupervisory workers in these establishments.
Weekly paid hours are adjusted to hours at work using data from the National
Compensation Survey (NCS). The BLS Hours at Work survey, conducted for this
purpose, was used for earlier years. 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 for farm labor, nonfarm proprietors, and
nonfarm unpaid family workers. Estimates of labor input 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.
The CES measures jobs, counting a person who is employed by two or more
establishments at each place of employment. In contrast, the CPS features
measures of employment that count each person only once and classify each
person according to his or her primary job; hours worked at all jobs by that
person accrue to his or her primary job. However, the CPS also collects more
detailed information on employment and hours worked at primary jobs and all
other jobs, separately. The BLS productivity measures use the more detailed
information on employment and hours to assign all hours worked to the correct
industrial sector and avoid duplicating hours data from the CES.
Output: Business sector output is an annual-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 inputs.
Business output accounted for about 78 percent of the value of GDP in 2000.
Nonfarm business, which also excludes farming, accounted for about 77 percent
of GDP in 2000.
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 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 index 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. Durables include the following 3-digit NAICS industries: wood product
manufacturing; nonmetallic mineral product manufacturing; primary metal
manufacturing; fabricated metal product manufacturing; machinery
manufacturing; computer and electronic product manufacturing; electrical
equipment and appliance manufacturing; transportation equipment manu-
facturing; furniture and related product manufacturing; and miscellaneous
manufacturing. Nondurables include: food manufacturing; beverage and tobacco
product manufacturing; textile mills; textile product mills; apparel
manufacturing; leather and allied product manufacturing; paper manufacturing;
printing and related support activities; petroleum and coal products
manufacturing; chemical manufacturing; and plastics and rubber products
manufacturing.
Nonfinancial corporate output is an annual-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 54 percent of the value of GDP
in 2000.
Productivity: These productivity measures describe the relationship between
real output and the labor time involved in its production. They show the
changes from period to period in the amount of goods and services produced
per hour. Although these measures relate output to hours at work of all
persons engaged in a sector, they do not measure the specific contribution of
labor, capital, or any other factor of production. Rather, 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: 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 domestic employees 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: The measures of unit labor costs in this release describe
the relationship between compensation per hour and 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 index number series where 1992=100, as percent changes from
the corresponding quarter of the previous year, and as percent changes from
the previous quarter presented at a compound annual rate. 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. These index numbers are available at the BLS web site,
http://www.bls.gov/data/home.htm, or by contacting the BLS Division of Major
Sector Productivity. (Telephone 202-691-5606 or email DPRWEB@BLS.GOV)
Information in this release will be made available to sensory-impaired
individuals upon request. Voice phone: 202-691-5606; Federal Relay Service
number: 1-800-877-8339.
Table 1. Business sector: Productivity, hourly compensation, unit labor costs,
and prices, seasonally adjusted
Real
Year Output per Hours Compensa- compensa- Unit Unit non- Implicit
and hour of of all tion per tion per labor labor pay- price
quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4)
---------------------------------------------------------------------------------------------------------
Indexes 1992=100
2005 I 134.4 157.2 117.0 161.4 120.3 120.1 128.2 123.1
II 134.3 158.5 118.0 161.7 119.4 120.4 129.8 123.9
III 135.9 160.6 118.2 164.2 119.6 120.8 132.0 125.0
IV 135.5 161.0 118.8 165.4 119.4 122.0 133.0 126.1
ANNUAL 135.0 159.3 118.0 163.2 119.7 120.9 130.8 124.5
2006 I 136.4 163.2 119.6 168.2 120.9 123.4 133.0 127.0
II 136.6 164.2 120.2 168.1 119.3 123.0 136.5 128.0
III 136.1 164.4 120.8 168.7 118.9 124.0 136.6 128.7
IV 136.5 165.5 121.2 173.4 122.8 127.0 132.2 128.9
ANNUAL 136.4 164.3 120.5 169.6 r120.5 124.3 134.6 128.2
2007 I 136.6 165.6 121.2 175.7 123.3 128.6 132.9 130.2
II 137.8 167.3 121.5 176.8 122.2 128.3 135.4 130.9
III r140.0 r169.7 r121.2 r178.6 r122.9 r127.6 r136.7 r131.0
IV 140.2 169.7 121.1 179.9 122.5 128.3 137.5 131.8
ANNUAL 138.6 168.1 121.3 177.7 122.7 128.2 135.6 131.0
---------------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2005 I 3.0 3.7 0.7 3.0 1.1 0.0 9.1 3.4
II -0.3 3.3 3.6 0.7 -3.1 1.0 5.1 2.6
III 4.9 5.5 0.6 6.2 0.7 1.3 7.1 3.5
IV -1.1 1.0 2.1 2.9 -0.5 4.0 3.1 3.7
ANNUAL 2.0 3.6 1.6 4.0 0.6 2.0 4.9 3.1
2006 I 2.5 5.5 2.9 7.2 5.1 4.6 0.0 2.8
II 0.8 2.5 1.7 -0.4 -5.1 -1.2 10.7 3.3
III -1.5 0.6 2.2 1.6 -1.6 3.1 0.5 2.1
IV 1.2 2.6 1.4 11.4 13.8 10.1 -12.4 0.8
ANNUAL 1.0 3.1 2.1 3.9 0.6 2.9 2.9 2.9
2007 I 0.2 0.2 0.0 5.5 1.6 5.3 2.1 4.1
II 3.6 4.4 0.8 2.4 -3.3 -1.1 7.7 2.2
III r6.5 5.7 r-0.7 r4.4 r2.4 -2.0 r4.1 r0.3
IV 0.6 0.2 -0.5 2.8 -1.4 2.2 2.3 2.2
ANNUAL 1.6 2.3 0.7 4.8 1.9 3.1 0.8 2.2
---------------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2005 I 2.5 3.8 1.2 5.0 1.9 2.4 4.1 3.1
II 1.5 3.5 2.0 3.8 0.9 2.3 3.6 2.8
III 2.4 3.9 1.5 4.0 0.3 1.6 5.8 3.2
IV 1.6 3.4 1.7 3.2 -0.5 1.6 6.1 3.3
ANNUAL 2.0 3.6 1.6 4.0 0.6 2.0 4.9 3.1
2006 I 1.5 3.8 2.3 4.2 0.5 2.7 3.8 3.1
II 1.7 3.6 1.8 3.9 0.0 2.2 5.1 3.3
III 0.2 2.4 2.2 2.8 -0.6 2.6 3.5 3.0
IV 0.7 2.8 2.1 4.8 2.8 4.1 -0.6 2.2
ANNUAL 1.0 3.1 2.1 3.9 0.6 2.9 2.9 2.9
2007 I 0.2 1.5 1.3 4.4 1.9 4.3 -0.1 2.6
II 0.8 1.9 1.1 5.2 2.4 4.3 -0.8 2.3
III r2.8 3.2 r0.4 5.9 r3.4 3.0 r0.1 1.8
IV 2.7 2.6 -0.1 3.8 -0.2 1.1 4.0 2.2
ANNUAL 1.6 2.3 0.7 4.8 1.9 3.1 0.8 2.2
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6. February 6, 2008
r=revised Source: Bureau of Labor Statistics
Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs,
and prices, seasonally adjusted
Real
Year Output per Hours Compensa- compensa- Unit Unit non- Implicit
and hour of of all tion per tion per labor labor pay- price
quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4)
---------------------------------------------------------------------------------------------------------
Indexes 1992=100
2005 I 133.4 157.4 118.0 160.3 119.5 120.2 129.6 123.6
II 133.5 158.6 118.8 160.9 118.8 120.5 131.3 124.5
III 135.0 160.8 119.1 163.2 118.8 120.9 133.7 125.6
IV 134.5 161.2 119.8 164.2 118.6 122.1 134.8 126.8
ANNUAL 134.1 159.5 118.9 162.1 118.9 120.9 132.4 125.1
2006 I 135.3 163.4 120.8 167.1 120.1 123.5 135.0 127.7
II 135.6 164.4 121.2 167.0 118.6 123.2 138.7 128.9
III 135.0 164.7 122.0 167.5 118.0 124.0 138.6 129.4
IV 135.6 165.7 122.2 172.4 122.1 127.1 133.6 129.5
ANNUAL 135.4 164.5 121.5 168.5 r119.7 124.5 136.5 128.9
2007 I 135.9 165.9 122.1 174.9 122.7 128.7 133.9 130.6
II 136.6 167.6 122.7 175.4 121.2 128.4 136.3 131.3
III r138.6 r169.9 r122.6 r177.1 r121.9 r127.8 r137.5 r131.3
IV 139.2 170.1 122.2 178.8 121.8 128.4 137.8 131.9
ANNUAL 137.6 168.4 122.4 176.5 121.9 128.3 136.4 131.3
---------------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2005 I 3.7 3.9 0.2 3.6 1.6 -0.1 10.4 3.8
II 0.3 3.2 2.9 1.5 -2.4 1.2 5.1 2.7
III 4.4 5.6 1.1 5.7 0.2 1.3 7.8 3.8
IV -1.4 0.9 2.4 2.6 -0.8 4.1 3.2 3.7
ANNUAL 1.9 3.6 1.6 4.0 0.7 2.0 5.5 3.4
2006 I 2.5 5.7 3.1 7.2 5.1 4.6 0.5 3.0
II 0.8 2.4 1.6 -0.2 -5.0 -1.0 11.5 3.7
III -1.6 0.8 2.4 1.3 -1.8 2.9 -0.4 1.6
IV 1.8 2.6 0.8 12.2 14.6 10.3 -13.6 0.3
ANNUAL 1.0 3.2 2.2 3.9 0.6 2.9 3.1 3.0
2007 I 0.7 0.3 -0.3 5.9 2.0 5.2 1.0 3.6
II 2.2 4.2 2.0 1.0 -4.7 -1.1 7.4 2.1
III r6.0 r5.6 r-0.3 r4.0 r2.0 r-1.9 r3.4 r0.1
IV 1.8 0.4 -1.5 3.9 -0.3 2.1 1.0 1.6
ANNUAL 1.6 2.3 0.7 4.8 1.8 3.1 0.0 1.9
---------------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2005 I 2.5 3.8 1.4 4.9 1.8 2.3 4.8 3.3
II 1.4 3.4 2.0 3.9 0.9 2.5 4.3 3.2
III 2.2 3.8 1.5 4.0 0.3 1.7 6.4 3.5
IV 1.7 3.4 1.7 3.3 -0.4 1.6 6.6 3.5
ANNUAL 1.9 3.6 1.6 4.0 0.7 2.0 5.5 3.4
2006 I 1.4 3.8 2.4 4.2 0.5 2.8 4.1 3.3
II 1.5 3.6 2.0 3.8 -0.2 2.2 5.7 3.5
III 0.1 2.4 2.4 2.7 -0.7 2.6 3.6 3.0
IV 0.9 2.8 2.0 5.0 3.0 4.1 -0.9 2.2
ANNUAL 1.0 3.2 2.2 3.9 0.6 2.9 3.1 3.0
2007 I 0.4 1.5 1.1 4.7 2.2 4.3 -0.8 2.3
II 0.7 2.0 1.2 5.0 2.3 4.2 -1.7 1.9
III r2.6 3.2 0.5 r5.7 3.3 3.0 r-0.8 1.5
IV 2.6 2.6 0.0 3.7 -0.3 1.0 3.2 1.8
ANNUAL 1.6 2.3 0.7 4.8 1.8 3.1 0.0 1.9
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6. February 6, 2008
r=revised Source: Bureau of Labor Statistics
Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
Real
Year Output per Hours Compensa- compensa- Unit
and hour of of all tion per tion per labor
quarter all persons Output persons hour (1) hour (2) costs
--------------------------------------------------------------------------------------------------
Indexes 1992=100
2005 I 168.3 142.7 84.8 166.2 123.9 98.7
II 170.9 143.8 84.1 167.8 123.9 98.2
III 172.4 144.5 83.8 170.2 124.0 98.7
IV 173.7 147.3 84.8 168.8 121.9 97.2
ANNUAL 171.3 144.6 84.4 168.3 123.4 98.2
2006 I 175.4 149.5 85.2 172.6 124.1 98.4
II 177.0 151.6 85.6 170.1 120.8 96.1
III 179.8 153.4 85.3 170.7 120.2 94.9
IV 180.7 152.6 84.4 176.4 125.0 97.6
ANNUAL 178.2 151.7 85.1 172.4 r122.5 96.8
2007 I 181.5 152.9 84.3 180.2 126.4 99.3
II 182.6 154.6 84.7 179.6 124.2 98.4
III r184.4 r156.1 r84.7 r180.1 r123.9 r97.7
IV 185.5 155.3 83.7 181.9 123.9 98.1
ANNUAL 183.5 154.7 84.3 180.4 124.6 98.3
--------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2005 I 4.9 4.6 -0.3 1.0 -0.9 -3.7
II 6.3 3.1 -3.0 4.0 0.0 -2.2
III 3.5 2.1 -1.4 5.6 0.1 2.1
IV 3.1 7.9 4.6 -3.1 -6.4 -6.0
ANNUAL 4.8 3.5 -1.2 4.2 0.8 -0.6
2006 I 4.0 6.0 1.9 9.4 7.2 5.1
II 3.7 5.7 2.0 -5.8 -10.2 -9.1
III 6.5 4.8 -1.6 1.4 -1.8 -4.8
IV 2.0 -2.1 -4.0 14.2 16.6 12.0
ANNUAL 4.0 4.9 0.9 2.5 -0.8 -1.5
2007 I 1.7 0.9 -0.8 8.9 4.8 7.0
II 2.4 4.4 2.0 -1.4 -6.9 -3.7
III r4.0 r3.9 r-0.1 r1.0 r-0.8 r-2.9
IV 2.5 -1.9 -4.3 4.2 -0.1 1.7
ANNUAL 2.9 2.0 -1.0 4.6 1.7 1.6
--------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2005 I 4.4 3.1 -1.2 6.0 2.9 1.5
II 5.1 3.4 -1.6 5.0 2.1 0.0
III 5.2 3.3 -1.9 4.0 0.3 -1.1
IV 4.4 4.4 0.0 1.8 -1.8 -2.5
ANNUAL 4.8 3.5 -1.2 4.2 0.8 -0.6
2006 I 4.2 4.7 0.5 3.9 0.1 -0.3
II 3.6 5.4 1.8 1.3 -2.5 -2.1
III 4.3 6.1 1.7 0.3 -3.0 -3.8
IV 4.0 3.6 -0.5 4.5 2.5 0.5
ANNUAL 4.0 4.9 0.9 2.5 -0.8 -1.5
2007 I 3.5 2.3 -1.1 4.4 1.9 0.9
II 3.1 2.0 -1.1 5.6 2.8 2.4
III r2.5 r1.8 r-0.7 r5.5 r3.1 r2.9
IV 2.6 1.8 -0.8 3.1 -0.9 0.5
ANNUAL 2.9 2.0 -1.0 4.6 1.7 1.6
--------------------------------------------------------------------------------------------------
See footnotes following Table 6. February 6, 2008
r=revised Source: Bureau of Labor Statistics
Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
Real
Year Output per Hours Compensa- compensa- Unit
and hour of of all tion per tion per labor
quarter all persons Output persons hour (1) hour (2) costs
--------------------------------------------------------------------------------------------------
Indexes 1992=100
2005 I 189.8 169.7 89.4 161.4 120.3 85.0
II 193.4 171.6 88.8 162.5 120.0 84.0
III 196.5 174.5 88.8 165.2 120.4 84.1
IV 200.7 180.5 89.9 163.6 118.2 81.5
ANNUAL 195.1 174.1 89.2 163.2 119.7 83.6
2006 I 202.7 182.9 90.3 168.4 121.0 83.1
II 205.5 187.1 91.1 165.7 117.7 80.7
III 210.1 189.6 90.3 166.4 117.3 79.2
IV 211.5 188.9 89.3 173.0 122.5 81.8
ANNUAL 207.4 187.2 90.2 168.4 r119.6 81.2
2007 I 212.3 188.7 88.9 176.5 123.8 83.1
II 215.1 192.1 89.3 175.9 121.6 81.8
III r217.8 r195.0 r89.5 r176.0 r121.1 r80.8
IV 220.3 194.3 88.2 178.3 121.4 80.9
ANNUAL 216.4 192.5 89.0 176.7 122.0 81.7
--------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2005 I 4.1 5.5 1.3 0.4 -1.5 -3.6
II 7.7 4.7 -2.8 2.7 -1.2 -4.7
III 6.6 6.8 0.2 7.0 1.4 0.4
IV 8.9 14.5 5.2 -3.8 -7.0 -11.7
ANNUAL 5.3 5.0 -0.3 3.8 0.5 -1.4
2006 I 3.9 5.5 1.5 12.1 9.9 7.9
II 5.7 9.4 3.5 -6.1 -10.5 -11.2
III 9.3 5.5 -3.5 1.7 -1.5 -6.9
IV 2.7 -1.4 -4.1 16.6 19.1 13.5
ANNUAL 6.3 7.5 1.1 3.2 -0.1 -2.9
2007 I 1.6 -0.5 -2.0 8.5 4.5 6.9
II 5.2 7.3 2.0 -1.4 -6.9 -6.2
III r5.2 r6.3 r1.0 r0.2 r-1.7 r-4.8
IV 4.6 -1.5 -5.9 5.2 0.9 0.6
ANNUAL 4.3 2.9 -1.4 4.9 2.0 0.6
--------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2005 I 3.3 3.0 -0.3 6.0 2.9 2.6
II 4.8 4.0 -0.8 4.4 1.5 -0.4
III 6.2 5.1 -1.0 3.5 -0.2 -2.5
IV 6.8 7.8 0.9 1.5 -2.1 -5.0
ANNUAL 5.3 5.0 -0.3 3.8 0.5 -1.4
2006 I 6.8 7.8 1.0 4.3 0.6 -2.3
II 6.3 9.0 2.6 2.0 -1.9 -4.0
III 6.9 8.7 1.6 0.7 -2.6 -5.8
IV 5.4 4.7 -0.7 5.7 3.6 0.3
ANNUAL 6.3 7.5 1.1 3.2 -0.1 -2.9
2007 I 4.8 3.2 -1.5 4.9 2.3 0.1
II 4.6 2.6 -1.9 6.1 3.4 1.4
III r3.7 r2.8 r-0.8 r5.8 r3.3 r2.0
IV 4.1 2.8 -1.3 3.1 -0.9 -1.0
ANNUAL 4.3 2.9 -1.4 4.9 2.0 0.6
--------------------------------------------------------------------------------------------------
See footnotes following Table 6. February 6, 2008
r=revised Source: Bureau of Labor Statistics
Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
Real
Year Output per Hours Compensa- compensa- Unit
and hour of of all tion per tion per labor
quarter all persons Output persons hour (1) hour (2) costs
--------------------------------------------------------------------------------------------------
Indexes 1992=100
2005 I 147.3 114.7 77.8 173.3 129.2 117.6
II 149.1 115.1 77.2 176.1 130.0 118.1
III 149.5 114.2 76.4 177.3 129.2 118.6
IV 148.4 114.4 77.1 176.5 127.5 118.9
ANNUAL 148.6 114.6 77.1 175.8 129.0 118.3
2006 I 149.8 116.3 77.6 178.3 128.2 119.0
II 150.7 116.8 77.5 175.9 124.9 116.7
III 151.6 117.9 77.8 176.4 124.3 116.4
IV 152.0 117.1 77.0 180.5 127.9 118.8
ANNUAL 151.0 117.0 77.5 177.8 r126.3 117.7
2007 I 152.4 117.8 77.3 184.8 129.7 121.2
II 152.1 118.2 77.7 184.1 127.3 121.1
III r153.3 r118.6 r77.3 r185.3 r127.5 r120.8
IV 153.0 117.8 77.0 186.4 127.0 121.9
ANNUAL 152.7 118.1 77.3 185.2 127.8 121.2
--------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2005 I 6.4 3.3 -2.9 1.8 -0.2 -4.3
II 4.9 1.3 -3.4 6.5 2.5 1.6
III 1.0 -3.0 -4.0 2.8 -2.6 1.7
IV -2.9 0.8 3.8 -1.9 -5.2 1.0
ANNUAL 4.8 1.9 -2.7 4.8 1.4 0.0
2006 I 3.9 6.6 2.7 4.3 2.3 0.4
II 2.4 1.7 -0.7 -5.4 -9.9 -7.6
III 2.4 4.1 1.7 1.2 -2.0 -1.2
IV 1.0 -2.9 -3.9 9.7 12.0 8.6
ANNUAL 1.6 2.1 0.5 1.1 -2.1 -0.5
2007 I 1.2 2.6 1.4 9.8 5.7 8.5
II -0.8 1.2 2.1 -1.5 -7.0 -0.6
III r3.3 r1.3 r-1.9 r2.5 r0.6 r-0.8
IV -0.9 -2.4 -1.5 2.6 -1.6 3.5
ANNUAL 1.1 0.9 -0.2 4.1 1.2 3.0
--------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2005 I 6.3 3.3 -2.8 5.9 2.8 -0.4
II 5.8 2.5 -3.1 6.1 3.0 0.2
III 4.7 1.2 -3.3 4.9 1.1 0.1
IV 2.3 0.6 -1.7 2.3 -1.4 0.0
ANNUAL 4.8 1.9 -2.7 4.8 1.4 0.0
2006 I 1.7 1.4 -0.3 2.9 -0.8 1.2
II 1.1 1.5 0.4 -0.1 -3.9 -1.2
III 1.4 3.3 1.8 -0.5 -3.8 -1.9
IV 2.4 2.3 -0.1 2.3 0.3 -0.1
ANNUAL 1.6 2.1 0.5 1.1 -2.1 -0.5
2007 I 1.7 1.3 -0.4 3.6 1.2 1.9
II 0.9 1.2 0.3 4.7 1.9 3.7
III r1.1 r0.5 r-0.6 r5.0 r2.6 r3.8
IV 0.7 0.7 0.0 3.3 -0.7 2.6
ANNUAL 1.1 0.9 -0.2 4.1 1.2 3.0
--------------------------------------------------------------------------------------------------
See footnotes following Table 6. February 6, 2008
r=revised Source: Bureau of Labor Statistics
Table 6. Nonfinancial corporate sector: Productivity, hourly compensation, unit labor costs, unit profits,
and prices, seasonally adjusted
Output Hourly Real Unit Total Unit Implicit
Year per all- compen- hourly Unit non- unit pro- price
and employee Employee sation compen- labor labor costs fits deflator
quarter hour Output hours (1) sation(2) costs costs(6) (7) (8) (4)
----------------------------------------------------------------------------------------------------------
Indexes 1992=100
2005 I 140.3 164.6 117.3 158.0 117.8 112.6 111.5 112.3 151.9 115.9
II 141.1 166.8 118.2 158.5 117.0 112.3 111.7 112.1 161.7 116.6
III 140.5 166.9 118.8 160.8 117.1 114.4 115.1 114.6 147.5 117.6
IV 141.4 169.2 119.7 161.8 116.9 114.5 112.8 114.0 159.5 118.1
ANNUAL 140.8 166.9 118.5 159.8 117.2 113.5 112.8 113.3 155.2 117.0
2006 I 142.4 171.5 120.4 163.8 117.8 115.0 112.5 114.4 164.4 118.8
II 141.8 171.5 120.9 163.9 116.4 115.6 114.3 115.2 164.8 119.7
III 142.9 173.6 121.5 164.6 115.9 115.2 113.8 114.8 172.6 120.0
IV 143.3 174.6 121.8 169.3 119.9 118.1 114.5 117.1 150.0 120.1
ANNUAL 142.6 172.8 121.2 165.4 r117.5 116.0 113.8 115.4 162.9 119.6
2007 I 143.6 175.0 121.9 171.2 120.1 119.2 114.6 118.0 154.3 121.2
II 144.3 176.3 122.1 172.1 119.0 119.3 114.8 118.0 158.2 121.6
III r145.6 r178.3 r122.4 r173.9 r119.7 r119.4 r114.2 r118.0 r153.6 r121.2
----------------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2005 I 0.3 0.3 0.1 2.7 0.7 2.4 6.8 3.6 9.8 4.3
II 2.2 5.4 3.1 1.2 -2.6 -1.0 0.5 -0.6 28.4 2.5
III -1.6 0.4 2.0 6.1 0.5 7.8 12.7 9.1 -30.8 3.4
IV 2.4 5.6 3.1 2.4 -1.0 0.0 -7.6 -2.1 36.9 1.8
ANNUAL 1.1 2.7 1.6 3.8 0.5 2.7 3.0 2.8 7.0 3.3
2006 I 3.1 5.5 2.3 5.2 3.2 2.0 -1.0 1.2 12.7 2.6
II -1.8 -0.1 1.7 0.2 -4.6 2.0 6.4 3.1 1.2 2.9
III 3.1 5.0 1.9 1.6 -1.5 -1.4 -1.5 -1.5 20.1 1.0
IV 1.3 2.4 1.2 11.9 14.3 10.5 2.2 8.3 -42.9 0.3
ANNUAL 1.3 3.5 2.2 3.5 0.2 2.2 0.9 1.9 5.0 2.2
2007 I 0.7 0.9 0.2 4.5 0.6 3.8 0.5 2.9 11.8 3.9
II 2.1 2.9 0.8 2.3 -3.5 0.2 0.5 0.3 10.4 1.4
III r3.7 r4.6 r0.8 r4.1 r2.2 r0.4 r-2.0 -0.3 r-11.0 r-1.6
----------------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2005 I 2.2 3.3 1.1 4.8 1.7 2.5 1.8 2.3 12.4 3.4
II 1.6 3.3 1.7 3.7 0.7 2.1 2.1 2.1 10.9 3.1
III -0.1 1.5 1.7 3.8 0.1 4.0 5.4 4.3 -2.1 3.6
IV 0.8 2.9 2.1 3.1 -0.6 2.3 2.8 2.4 7.5 3.0
ANNUAL 1.1 2.7 1.6 3.8 0.5 2.7 3.0 2.8 7.0 3.3
2006 I 1.5 4.2 2.6 3.7 0.0 2.2 0.9 1.8 8.2 2.6
II 0.5 2.8 2.3 3.4 -0.5 2.9 2.3 2.8 1.9 2.7
III 1.7 4.0 2.3 2.3 -1.0 0.6 -1.1 0.2 17.0 2.1
IV 1.4 3.2 1.8 4.6 2.6 3.2 1.5 2.7 -5.9 1.7
ANNUAL 1.3 3.5 2.2 3.5 0.2 2.2 0.9 1.9 5.0 2.2
2007 I 0.8 2.1 1.3 4.5 2.0 3.6 1.8 3.2 -6.1 2.0
II 1.8 2.8 1.0 5.0 2.2 3.2 0.4 2.4 -4.1 1.6
III r1.9 2.7 0.7 r5.6 r3.2 3.6 0.3 2.7 r-11.0 1.0
----------------------------------------------------------------------------------------------------------
See footnotes following Table 6. February 6, 2008
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. Compensation and
hours 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
-1.5 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 2007.
Footnotes, Tables 1-6
(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 1978-2006 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
average 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 adjustments.
United States Department of Labor
