Transmission of material in this release is embargoed until USDL-10-0588
8:30 a.m. (EDT) Thursday, May 6, 2010
Technical information: (202) 691-5606 • dprweb@bls.gov • www.bls.gov/lpc
Media contact: (202) 691-5902 • PressOffice@bls.gov
PRODUCTIVITY AND COSTS
First Quarter 2010, Preliminary
Nonfarm business sector labor productivity increased at a 3.6 percent annual
rate during the first quarter of 2010, the U.S. Bureau of Labor Statistics
reported today, with output rising 4.4 percent and hours worked rising
0.8 percent. (All quarterly percent changes in this release are seasonally
adjusted annual rates.) From the first quarter of 2009 to the first quarter of
2010, output increased 3.1 percent while hours fell 3.0 percent, yielding an
increase in productivity of 6.3 percent (tables A and 2). This gain in
productivity from the same quarter a year ago was the largest since output per
hour increased 7.0 percent over the four-quarter period ending in the first
quarter of 1962.
Labor productivity, or output per hour, is calculated by dividing an index of
real output by an index of hours of all persons, including employees,
proprietors, and unpaid family workers.
Unit labor costs in nonfarm businesses fell 1.6 percent in the first quarter
of 2010, as the 3.6 percent increase in productivity outpaced a 1.9 percent
gain in hourly compensation. Unit labor costs fell 3.7 percent over the last
four quarters, as the 6.3 percent increase in productivity outpaced a 2.3
percent rise in hourly compensation (tables A and 2).
BLS defines 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.
Manufacturing sector productivity grew 2.5 percent in the first quarter of
2010, as output rose 7.5 percent and hours worked increased 4.9 percent, the
first increase in hours since the second quarter of 2007. Gains in
productivity, output, and hours were each larger in the durable goods sector
than in the nondurable goods sector (tables A, 3, 4 and 5). Unit labor costs
in manufacturing declined 3.7 percent in the first quarter of 2010 and fell
6.1 percent over the last four quarters. The four-quarter decline was the
largest in the series, which begins in the first quarter of 1988.
The data sources and methods used in the preparation of the manufacturing
output series differ from those used in preparing the business and nonfarm
business output series, and these measures are not directly comparable. See
Technical Notes for further information on data sources.
Fourth quarter and annual 2009 measures of productivity and costs were
announced for the nonfinancial corporate sector (tables C and 6). Output per
employee hour rose 8.2 percent for the fourth quarter of 2009 as output and
hours rose 8.5 percent and 0.3 percent, respectively.
Revised measures
Revised measures of real hourly compensation for all sectors for 2005 onward
reflect revisions in the consumer price series based on new and revised data
from the BLS Office of Prices and Living Conditions. Output data for the
manufacturing sectors incorporates revised output indexes constructed by BLS
using data from the U.S. Department of Commerce. Accordingly, manufacturing
output, productivity and unit labor costs were revised back to 1987, the first
year in the series (appendix tables 1-3). Table B presents previous and
revised productivity and related measures for the major sectors: business,
nonfarm business and manufacturing, for the fourth quarter and annual
averages of 2009.
In the fourth quarter of 2009, nonfarm business productivity growth was
revised down to 6.3 percent, reflecting a 0.6 percentage point downward
revision to output and a 0.1 percentage point upward revision to hours. After
revision, unit labor costs fell 5.6 percent--a smaller decline than previously
reported. In the manufacturing sector, fourth-quarter productivity growth was
revised down slightly to 6.5 percent.
Full historical annual and quarterly measures are available on the
productivity and costs home page: http://www.bls.gov/lpc/#data
___________
The revised Productivity and Costs press release for first-quarter 2010 is
scheduled to be released Thursday, June 3, 2010 at 8:30 a.m. (EDT).
==============================================================================
Beginning with the Productivity and Costs news release scheduled for
August 10, 2010, index series will be rebased from 1992=100 to 2005=100.
Also, the presentation of the data in tables 1-6 will be reformatted. In the
new format, the three panels in each table will be rearranged. The first panel
will present percent changes from the previous quarter, the second will show
percent changes from the corresponding quarter of the previous year, and the
third will show indexes. Also, all data will be presented in reverse
chronological order, listing the most recent data first.
==============================================================================
======================================================================================================
Table A. Preliminary first-quarter 2010 measures: percent change from previous quarter at annual rate
(Q to Q) and from same quarter a year ago (Y to Y)
Sector Nonfarm Durable Nondurable
Business Business Manufacturing Manufacturing Manufacturing
Q to Q Y to Y Q to Q Y to Y Q to Q Y to Y Q to Q Y to Y Q to Q Y to Y
------------------------------------------------------------------------------------------------------
Productivity 3.6 6.3 3.0 6.3 2.5 7.5 3.8 9.0 2.2 5.0
Output 4.4 3.1 4.1 3.0 7.5 3.3 10.5 3.1 4.8 3.4
Hours 0.8 -3.0 1.1 -3.1 4.9 -3.9 6.4 -5.4 2.5 -1.6
Hourly compensation 1.9 2.3 1.7 2.4 -1.2 0.9 -1.2 1.6 -1.5 0.0
Real hourly
compensation 0.4 -0.1 0.2 -0.1 -2.7 -1.5 -2.7 -0.8 -3.0 -2.4
Unit labor costs -1.6 -3.7 -1.3 -3.7 -3.7 -6.1 -4.9 -6.8 -3.7 -4.8
======================================================================================================
Table B. Revised and previous measures for: fourth quarter and annual averages 2009
Sector Nonfarm Durable Nondurable
Business Business Manufacturing Manufacturing Manufacturing
Revised Previous Revised Previous Revised Previous Revised Previous Revised Previous
------------------------------------------------------------------------------------------------------
Percent change, annual rate, fourth quarter 2009
Productivity 6.3 6.9 6.6 7.2 6.5 6.6 7.1 6.8 6.1 6.4
Output 7.0 7.6 6.9 7.5 5.6 5.5 6.4 5.7 4.9 5.4
Hours 0.7 0.6 0.3 0.3 -0.8 -1.0 -0.7 -1.0 -1.2 -0.9
Hourly
compensation 0.4 0.6 0.4 0.6 -0.3 -0.1 0.2 0.6 -1.2 -1.4
Real hourly
compensation -2.3 -2.8 -2.2 -2.7 -3.0 -3.5 -2.5 -2.8 -3.8 -4.7
Unit labor
costs -5.6 -5.9 -5.8 -6.2 -6.4 -6.3 -6.4 -5.8 -6.9 -7.3
------------------------------------------------------------------------------------------------------
Percent change, annual average 2009
Productivity 3.7 3.8 3.8 3.8 1.8 1.8 -1.6 -1.6 3.0 3.0
Output -3.6 -3.6 -3.5 -3.5 -11.1 -11.1 -16.4 -16.5 -5.6 -5.5
Hours -7.1 -7.1 -7.0 -7.0 -12.6 -12.6 -15.1 -15.1 -8.3 -8.3
Hourly
compensation 1.9 2.0 1.9 1.9 4.4 4.4 5.3 5.4 3.4 3.3
Real hourly
compensation 2.3 2.3 2.3 2.3 4.8 4.8 5.7 5.7 3.7 3.7
Unit labor
costs -1.7 -1.7 -1.8 -1.8 2.6 2.6 7.0 7.1 0.3 0.3
======================================================================================================
Table C. Nonfinancial corporations: preliminary fourth-quarter and annual average 2009 productivity
and cost measures
Real
Hourly hourly Unit Implicit
Produc- compen- compen- labor Unit price
tivity Output Hours sation sation costs profits deflator
------------------------------------------------------------------------------------------------------
Percent change, annual rate, fourth quarter 2009
Q to Q 8.2 8.5 0.3 0.2 -2.4 -7.4 28.7 -2.9
Y to Y 3.4 -3.2 -6.4 0.6 -0.9 -2.8 15.1 -0.2
Percent change, annual average 2009
2009 1.9 -5.8 -7.5 2.2 2.6 0.2 1.5 1.6
======================================================================================================
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 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 inputs. Business output accounted for about 77
percent of the value of GDP in 2005. Nonfarm business, which excludes
farming, accounted for about 76 percent of GDP in 2005.
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 manufacturing; 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 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 2005.
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
2008 I 142.8 171.7 120.3 180.3 r121.3 126.3 141.7 132.1
II 143.8 172.2 119.8 181.0 r120.2 125.8 143.8 132.5
III 144.3 170.6 118.2 183.6 r120.1 127.2 145.3 134.0
IV 145.0 167.4 115.4 185.4 r124.3 127.8 143.4 133.6
ANNUAL 144.0 170.5 118.4 182.5 121.4 126.8 143.6 133.0
2009 I 145.3 163.6 112.6 183.5 r123.6 126.2 148.0 134.3
II 148.0 163.2 110.3 186.8 r125.4 126.2 147.7 134.2
III 150.9 164.1 108.7 186.8 r124.2 123.8 151.9 134.3
IV r153.4 r166.9 r108.8 r187.0 r123.5 r121.9 155.3 r134.4
ANNUAL r149.4 r164.5 r110.1 r186.0 r124.2 r124.5 r150.8 r134.3
2010 I 154.5 168.6 109.1 187.8 123.6 121.6 156.6 134.6
---------------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2008 I -0.2 -1.3 -1.1 0.9 r-3.6 1.1 -0.3 0.6
II 2.9 1.1 -1.8 1.4 r-3.6 -1.5 6.1 1.4
III 1.4 -3.7 -5.0 5.9 r-0.4 4.5 4.1 4.3
IV 2.1 -7.2 -9.1 4.1 r14.6 1.9 -5.2 -1.0
ANNUAL 2.1 0.0 -2.1 3.0 -0.8 0.8 2.6 1.5
2009 I 0.9 -8.7 -9.5 -4.1 r-2.0 -5.0 13.4 2.1
II 7.6 -1.0 -8.0 7.5 r5.7 -0.1 -0.7 -0.3
III 8.0 2.2 -5.3 0.0 r-3.6 -7.4 11.9 0.1
IV r6.6 r6.9 0.3 r0.4 r-2.2 r-5.8 9.3 r0.3
ANNUAL 3.8 -3.5 -7.0 1.9 2.3 -1.8 5.0 0.9
2010 I 3.0 4.1 1.1 1.7 0.2 -1.3 3.2 0.6
---------------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2008 I 2.7 2.0 -0.7 2.9 -1.2 0.2 3.7 1.6
II 2.7 1.4 -1.3 2.7 -1.6 0.0 3.2 1.2
III 1.6 -0.5 -2.1 3.3 r-1.9 1.7 2.4 2.0
IV 1.5 -2.8 -4.3 3.0 1.5 1.5 1.1 1.3
ANNUAL 2.1 0.0 -2.1 3.0 -0.8 0.8 2.6 1.5
2009 I 1.8 -4.7 -6.4 1.7 1.9 -0.1 4.4 1.7
II 3.0 -5.2 -7.9 3.3 r4.3 0.3 2.7 1.3
III 4.6 -3.8 -8.0 1.8 3.4 -2.7 4.6 0.2
IV r5.7 r-0.3 -5.7 0.9 -0.6 r-4.6 8.3 r0.6
ANNUAL 3.8 -3.5 -7.0 1.9 2.3 -1.8 5.0 0.9
2010 I 6.3 3.0 -3.1 2.4 -0.1 -3.7 5.8 0.2
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6. May 6, 2010
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
2008 I 141.8 172.0 121.3 179.3 r120.6 126.4 142.5 132.3
II 142.8 172.6 120.8 179.7 r119.4 125.9 144.9 132.9
III 143.2 170.8 119.3 182.4 r119.3 127.4 146.5 134.4
IV 144.0 167.5 116.3 184.4 r123.6 128.1 145.1 134.3
ANNUAL 142.9 170.7 119.4 181.4 120.7 126.9 144.7 133.5
2009 I 144.3 163.7 113.4 182.5 r123.0 126.4 150.3 135.2
II 147.0 163.2 111.1 185.9 r124.7 126.4 150.0 135.1
III 149.8 164.1 109.6 185.7 r123.5 124.0 154.6 135.2
IV r152.1 r166.9 r109.8 r185.9 r122.8 r122.2 r157.5 r135.2
ANNUAL r148.3 r164.5 r110.9 r185.0 r123.5 r124.7 r153.2 r135.2
2010 I 153.4 168.7 110.0 186.7 122.9 121.7 158.9 135.4
---------------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2008 I -0.5 -1.7 -1.2 1.1 r-3.5 1.6 -1.3 0.5
II 3.0 1.3 -1.6 1.1 r-3.9 -1.9 7.1 1.6
III 1.1 -4.0 -5.0 6.0 r-0.3 4.9 4.2 4.6
IV 2.2 -7.6 -9.6 4.5 r15.1 2.2 -3.7 -0.2
ANNUAL 2.0 -0.1 -2.1 3.0 -0.8 1.0 2.4 1.5
2009 I 0.9 -8.8 -9.6 -4.2 r-2.0 -5.0 15.3 2.7
II 7.6 -1.1 -8.1 7.7 r5.8 0.1 -0.9 -0.3
III 7.8 2.2 -5.3 -0.4 r-3.9 -7.6 13.0 0.4
IV r6.3 r7.0 r0.7 r0.4 r-2.3 r-5.6 7.7 r-0.2
ANNUAL r3.7 -3.6 -7.1 r1.9 2.3 -1.7 5.8 1.3
2010 I 3.6 4.4 0.8 1.9 0.4 -1.6 3.6 0.6
---------------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2008 I 2.5 1.9 -0.6 2.8 -1.3 0.3 3.1 1.4
II 2.7 1.3 -1.4 2.8 r-1.5 0.1 2.8 1.1
III 1.6 -0.7 -2.2 3.5 r-1.7 1.9 2.2 2.0
IV 1.4 -3.0 -4.4 3.1 1.6 1.7 1.5 1.6
ANNUAL 2.0 -0.1 -2.1 3.0 -0.8 1.0 2.4 1.5
2009 I 1.8 -4.8 -6.5 1.8 r1.9 0.0 5.5 2.2
II 2.9 -5.4 -8.1 3.4 4.4 0.5 3.5 1.7
III 4.6 -3.9 -8.2 1.8 r3.5 -2.7 5.6 0.6
IV r5.6 r-0.3 r-5.6 0.8 r-0.7 r-4.6 8.6 0.6
ANNUAL r3.7 -3.6 -7.1 r1.9 2.3 -1.7 5.8 1.3
2010 I 6.3 3.1 -3.0 2.3 -0.1 -3.7 5.7 0.1
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6. May 6, 2010
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
2008 I r182.9 r150.1 82.1 175.6 r118.1 r96.0
II r181.1 r148.1 81.8 176.1 r117.0 r97.3
III r181.0 r144.6 79.9 179.2 r117.3 r99.1
IV r179.7 r137.4 76.5 185.4 r124.2 r103.1
ANNUAL r181.2 r145.1 80.1 179.0 119.0 r98.8
2009 I r178.4 r129.2 72.4 185.0 r124.7 r103.7
II r181.3 r126.5 69.8 187.8 r126.0 r103.6
III r187.6 r129.3 68.9 187.4 r124.6 r99.9
IV r190.6 r131.1 r68.7 r187.2 r123.7 r98.2
ANNUAL r184.4 r129.0 r70.0 r186.9 r124.8 r101.3
2010 I 191.8 133.5 69.6 186.7 122.8 97.3
--------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2008 I 0.8 -1.2 -2.0 -1.7 r-6.2 -2.5
II -3.9 -5.2 -1.4 1.3 r-3.7 5.3
III -0.3 -9.3 -9.0 7.2 r0.8 7.6
IV -2.7 -18.4 -16.1 14.3 r25.9 17.5
ANNUAL r1.1 r-3.0 -4.0 3.1 -0.7 r2.0
2009 I -2.9 -21.7 -19.4 -0.8 r1.4 2.1
II 6.6 -8.1 -13.8 6.3 r4.5 r-0.3
III 14.8 9.0 -5.1 -1.0 r-4.5 -13.7
IV r6.5 r5.6 r-0.8 r-0.3 r-3.0 r-6.4
ANNUAL 1.8 -11.1 -12.6 4.4 4.8 2.6
2010 I 2.5 7.5 4.9 -1.2 -2.7 -3.7
--------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2008 I r3.5 r1.5 -2.0 1.6 r-2.4 r-1.8
II 1.9 r-0.8 -2.7 2.3 -1.9 r0.3
III 0.4 -3.9 -4.3 3.7 -1.5 3.3
IV -1.5 -8.7 -7.3 5.1 3.5 6.7
ANNUAL r1.1 r-3.0 -4.0 3.1 -0.7 r2.0
2009 I -2.4 -13.9 -11.7 5.4 r5.5 8.0
II 0.1 -14.6 -14.7 6.6 7.7 6.5
III 3.7 -10.6 -13.8 4.6 6.2 0.8
IV 6.1 -4.6 -10.1 r1.0 r-0.5 r-4.8
ANNUAL 1.8 -11.1 -12.6 4.4 4.8 2.6
2010 I 7.5 3.3 -3.9 0.9 -1.5 -6.1
--------------------------------------------------------------------------------------------------
See footnotes following Table 6. May 6, 2010
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
2008 I r213.8 r185.6 86.8 169.4 r114.0 r79.2
II r210.3 r182.1 86.6 170.2 r113.1 r80.9
III r213.1 r178.4 83.7 174.0 r113.9 r81.7
IV r206.2 r165.4 80.2 179.4 r120.3 r87.0
ANNUAL r210.9 r177.9 84.4 173.1 115.1 r82.1
2009 I r200.2 r150.4 75.1 179.5 r120.9 r89.6
II r201.7 r143.9 71.3 184.2 r123.6 r91.3
III r212.5 r149.0 70.1 182.8 r121.6 r86.0
IV r216.2 r151.3 r70.0 r182.9 r120.8 r84.6
ANNUAL r207.5 r148.6 r71.6 r182.3 r121.7 r87.9
2010 I 218.2 155.1 71.1 182.4 120.0 83.6
--------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2008 I -1.0 -0.9 0.1 -3.6 r-7.9 -2.6
II -6.5 -7.3 -0.8 1.9 r-3.1 9.0
III 5.5 -7.9 -12.7 9.4 r2.8 3.7
IV -12.3 -26.2 -15.9 13.0 r24.4 r28.9
ANNUAL r1.1 r-3.2 -4.2 2.9 -0.9 r1.8
2009 I -11.1 -31.6 -23.0 0.1 r2.3 12.6
II 3.0 -16.1 -18.6 11.0 r9.0 7.7
III r23.2 r14.8 -6.8 -2.9 r-6.4 r-21.2
IV r7.1 r6.4 r-0.7 r0.2 r-2.5 r-6.4
ANNUAL -1.6 r-16.4 -15.1 r5.3 5.7 r7.0
2010 I 3.8 10.5 6.4 -1.2 -2.7 -4.9
--------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2008 I r4.9 r2.9 -1.9 0.9 -3.2 r-3.8
II r2.0 r-0.6 -2.5 2.2 -2.0 r0.2
III r1.5 -3.7 -5.1 3.9 r-1.3 r2.4
IV -3.8 -11.1 -7.6 5.0 3.4 9.1
ANNUAL r1.1 r-3.2 -4.2 2.9 -0.9 r1.8
2009 I -6.4 -19.0 -13.5 6.0 r6.1 13.2
II -4.1 -21.0 -17.6 8.2 9.3 12.8
III -0.3 -16.5 -16.3 5.1 r6.8 r5.3
IV r4.9 r-8.5 r-12.7 r1.9 r0.5 r-2.8
ANNUAL -1.6 r-16.4 -15.1 r5.3 5.7 r7.0
2010 I 9.0 3.1 -5.4 1.6 -0.8 -6.8
--------------------------------------------------------------------------------------------------
See footnotes following Table 6. May 6, 2010
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
2008 I r154.4 r115.7 74.9 185.2 r124.6 r120.0
II r154.1 r114.9 74.5 185.2 r123.0 r120.1
III r150.7 r111.7 74.1 187.0 r122.4 r124.1
IV r153.7 r108.8 70.8 194.5 r130.3 r126.6
ANNUAL r153.2 r112.8 73.6 187.9 124.9 r122.6
2009 I r154.5 r105.7 68.4 193.7 r130.5 r125.4
II r156.6 r105.6 67.5 193.5 r129.8 r123.6
III r159.0 r106.6 67.1 195.0 r129.7 r122.7
IV r161.3 r107.9 r66.9 r194.4 r128.4 r120.5
ANNUAL r157.8 r106.5 r67.5 r194.2 r129.6 r123.0
2010 I 162.2 109.2 67.3 193.7 127.4 119.4
--------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2008 I 4.4 -1.4 -5.5 1.6 r-3.0 -2.7
II -0.6 -2.8 -2.3 0.0 r-4.9 0.6
III -8.5 -10.6 -2.3 4.1 r-2.1 13.8
IV 8.0 -9.9 -16.6 16.9 r28.8 8.3
ANNUAL r0.9 r-2.8 -3.7 3.6 -0.3 r2.6
2009 I 2.1 -11.1 -12.9 -1.6 r0.6 -3.6
II 5.7 0.0 -5.4 -0.4 r-2.2 -5.8
III 6.2 r3.8 -2.2 3.2 r-0.5 r-2.8
IV r6.1 r4.9 r-1.2 r-1.2 r-3.8 r-6.9
ANNUAL 3.0 r-5.6 -8.3 r3.4 3.7 0.3
2010 I 2.2 4.8 2.5 -1.5 -3.0 -3.7
--------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2008 I r2.2 r0.0 -2.2 3.1 -1.1 r0.8
II r2.1 r-1.0 -3.0 2.4 -1.8 r0.3
III r-1.2 -4.0 -2.8 3.4 r-1.8 4.7
IV 0.6 -6.3 -6.9 5.4 r3.8 4.8
ANNUAL r0.9 r-2.8 -3.7 3.6 -0.3 r2.6
2009 I 0.1 -8.7 -8.7 4.6 4.8 4.5
II 1.6 -8.0 -9.5 4.5 5.5 2.8
III 5.5 -4.5 -9.4 4.3 r6.0 -1.1
IV r5.0 r-0.8 -5.5 r0.0 -1.5 r-4.8
ANNUAL 3.0 r-5.6 -8.3 r3.4 3.7 0.3
2010 I 5.0 3.4 -1.6 0.0 -2.4 -4.8
--------------------------------------------------------------------------------------------------
See footnotes following Table 6. May 6, 2010
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
2007 I 143.6 175.1 122.0 164.3 r115.2 114.4 123.1 116.8 171.2 121.8
II 144.3 176.5 122.3 165.0 r114.3 114.4 124.9 117.2 171.8 122.2
III 144.0 175.8 122.1 166.1 r114.4 115.3 127.4 118.6 155.6 122.0
IV 146.2 178.5 122.1 168.6 r114.8 115.3 127.9 118.7 149.9 121.6
ANNUAL 144.5 176.5 122.1 166.0 114.6 114.9 125.8 117.8 162.1 121.9
2008 I 145.0 176.9 122.0 168.7 r113.5 116.3 129.1 119.8 133.0 121.0
II 147.3 178.8 121.3 169.7 r112.7 115.1 129.2 118.9 134.7 120.4
III 149.1 178.4 119.7 172.4 r112.8 115.6 129.8 119.4 145.3 121.8
IV 149.2 174.6 117.0 175.0 r117.3 117.3 134.1 121.8 129.5 122.5
ANNUAL 147.6 177.2 120.0 171.4 114.0 116.1 130.5 120.0 135.7 121.4
2009 I 146.6 166.6 113.7 173.2 r116.7 118.1 139.1 123.8 127.5 124.1
II 149.9 166.4 111.0 175.4 r117.7 117.1 138.0 122.7 133.8 123.7
III 151.3 165.7 109.5 175.9 r116.9 116.3 135.7 121.5 140.0 123.2
IV 154.3 169.1 109.6 176.0 116.2 114.1 134.5 119.5 149.1 122.2
ANNUAL 150.5 167.0 111.0 175.1 116.9 116.4 136.8 121.9 137.6 123.3
----------------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2007 I -0.6 0.2 0.8 3.9 r-0.1 4.5 7.5 5.3 -10.2 3.2
II 2.0 3.2 1.2 1.7 r-2.9 -0.3 5.8 1.4 1.5 1.4
III -0.8 -1.5 -0.7 2.6 r0.2 3.4 8.2 4.8 -32.7 -0.7
IV 6.3 6.2 -0.1 6.3 r1.4 0.0 1.5 0.5 -13.8 -1.3
ANNUAL 1.0 1.7 0.7 3.6 0.7 2.6 5.8 3.5 -9.9 1.7
2008 I -3.2 -3.6 -0.4 0.1 r-4.4 3.5 3.9 3.6 -38.0 -1.9
II 6.6 4.4 -2.1 2.3 r-2.7 -4.0 0.5 -2.7 5.0 -2.0
III 4.9 -0.8 -5.4 6.5 r0.1 1.6 1.8 1.6 35.5 4.8
IV 0.2 -8.3 -8.5 6.3 r17.1 6.1 13.9 8.3 -37.0 2.4
ANNUAL 2.2 0.4 -1.7 3.2 -0.6 1.1 3.7 1.8 -16.3 -0.4
2009 I -6.8 -17.1 -11.0 -4.1 r-2.0 2.9 15.8 6.6 -5.8 5.3
II 9.2 -0.6 -9.0 5.3 r3.5 -3.6 -3.2 -3.5 21.0 -1.3
III 3.9 -1.7 -5.4 1.0 r-2.6 -2.8 -6.5 -3.9 19.9 -1.8
IV 8.2 8.5 0.3 0.2 -2.4 -7.4 -3.4 -6.2 28.7 -2.9
ANNUAL 1.9 -5.8 -7.5 2.2 2.6 0.2 4.8 1.6 1.5 1.6
----------------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2007 I 0.3 1.4 1.1 3.3 0.8 2.9 5.5 3.7 -3.0 2.8
II 1.6 2.6 1.0 3.6 0.9 2.0 5.0 2.8 -2.2 2.1
III 0.4 0.9 0.5 3.9 1.6 3.5 7.0 4.5 -18.7 1.1
IV 1.7 2.0 0.3 3.6 -0.4 1.9 5.7 3.0 -14.7 0.6
ANNUAL 1.0 1.7 0.7 3.6 0.7 2.6 5.8 3.5 -9.9 1.7
2008 I 1.0 1.0 0.0 2.7 -1.5 1.7 4.8 2.6 -22.3 -0.6
II 2.1 1.3 -0.8 2.8 -1.4 0.7 3.5 1.5 -21.6 -1.5
III 3.5 1.5 -2.0 3.8 -1.4 0.2 1.9 0.7 -6.6 -0.1
IV 2.0 -2.2 -4.1 3.8 2.2 1.7 4.9 2.6 -13.6 0.8
ANNUAL 2.2 0.4 -1.7 3.2 -0.6 1.1 3.7 1.8 -16.3 -0.4
2009 I 1.1 -5.8 -6.8 2.7 r2.8 1.6 7.7 3.4 -4.1 2.6
II 1.7 -6.9 -8.5 3.4 4.4 1.7 6.8 3.2 -0.7 2.8
III 1.5 -7.1 -8.5 2.1 3.7 0.6 4.5 1.7 -3.7 1.1
IV 3.4 -3.2 -6.4 0.6 -0.9 -2.8 0.3 -1.9 15.1 -0.2
ANNUAL 1.9 -5.8 -7.5 2.2 2.6 0.2 4.8 1.6 1.5 1.6
----------------------------------------------------------------------------------------------------------
See footnotes following Table 6. May 6, 2010
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 +1.5 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 fourth quarter of
2009.
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 1978-2009 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.
Appendix table 1.
Manufacturing sector: Productivity, hourly compensation, and unit labor costs
Indexes 1992=100
Real
Output per Hours Compensa- compensa- Unit
hour of of all tion per tion per labor
Year all persons Output persons hour (1) hour (2) costs
-----------------------------------------------------------------------------------------------
1987 r89.0 r92.4 103.8 80.6 97.2 r90.5
1988 r90.9 r97.2 106.9 83.5 97.1 r91.8
1989 r91.9 r98.8 107.6 86.0 95.9 r93.6
1990 r93.9 r98.5 104.9 90.1 95.7 r96.0
1991 r96.3 96.8 100.5 95.5 97.9 r99.1
1992 100.0 100.0 100.0 100.0 100.0 100.0
1993 r102.6 r103.9 101.3 102.3 99.8 r99.7
1994 r106.2 r110.1 103.7 104.8 100.1 r98.7
1995 r111.0 r115.9 104.4 106.5 99.3 r95.9
1996 r115.1 r119.8 104.2 108.3 98.4 r94.1
1997 r121.3 r128.7 106.0 110.9 98.7 r91.4
1998 r127.9 r135.3 105.8 117.8 103.4 r92.1
1999 r133.7 r140.5 105.1 123.0 105.7 r92.0
2000 r139.2 r144.3 103.7 132.5 110.2 r95.2
2001 r141.4 r137.0 96.9 137.5 111.2 r97.3
2002 r151.1 r136.1 90.1 145.1 115.5 r96.0
2003 r160.6 r137.5 85.6 156.7 122.0 r97.6
2004 r164.3 r140.0 85.2 157.9 119.7 r96.1
2005 r172.0 r144.9 84.3 163.2 119.7 r94.9
2006 r173.4 r147.2 84.9 166.4 118.2 r96.0
2007 r179.2 r149.5 83.4 173.5 119.9 r96.8
2008 r181.2 r145.1 80.1 179.0 119.0 r98.8
2009 r184.4 r129.0 r70.0 r186.9 r124.8 r101.3
----------------------------------------------------------------------------------------------
See footnotes following Table 6. May 6, 2010
r=revised Source: Bureau of Labor Statistics
Appendix table 2.
Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs
Indexes 1992=100
Real
Output per Hours Compensa- compensa- Unit
hour of of all tion per tion per labor
Year all persons Output persons hour (1) hour (2) costs
-----------------------------------------------------------------------------------------------
1987 r88.5 r94.2 106.5 80.7 97.3 r91.1
1988 r90.4 r100.0 110.6 82.9 96.5 r91.7
1989 r91.2 r101.1 110.9 85.4 95.2 r93.6
1990 r92.9 r99.8 107.4 89.1 94.7 r95.9
1991 r94.6 r96.0 101.4 94.8 97.2 r100.2
1992 100.0 100.0 100.0 100.0 100.0 100.0
1993 r103.9 r105.4 101.4 102.0 99.5 r98.1
1994 r109.1 r114.2 104.7 104.5 99.9 r95.8
1995 r115.9 r123.3 106.3 105.3 98.2 r90.8
1996 r122.1 r131.0 107.3 106.4 96.7 r87.2
1997 r130.5 r144.0 110.4 108.3 96.3 r83.0
1998 r140.5 r156.0 111.0 115.3 101.1 r82.0
1999 r150.6 r166.4 110.5 120.3 103.4 r79.9
2000 r158.0 r173.5 109.8 129.8 107.9 r82.2
2001 r158.9 r162.0 101.9 133.6 108.0 r84.0
2002 r170.9 r159.8 93.5 140.1 111.5 r82.0
2003 r183.2 r162.2 88.5 153.0 119.1 r83.5
2004 r186.4 r166.1 89.1 152.5 115.6 r81.8
2005 r196.1 r174.4 89.0 157.2 115.3 r80.2
2006 r200.0 r179.9 89.9 160.7 114.1 r80.4
2007 r208.6 r183.7 88.1 168.2 116.2 r80.6
2008 r210.9 r177.9 84.4 173.1 115.1 r82.1
2009 r207.5 r148.6 r71.6 r182.3 r121.7 r87.9
----------------------------------------------------------------------------------------------
See footnotes following Table 6. May 6, 2010
r=revised Source: Bureau of Labor Statistics
Appendix table 3.
Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs
Indexes 1992=100
Real
Output per Hours Compensa- compensa- Unit
hour of of all tion per tion per labor
Year all persons Output persons hour (1) hour (2) costs
-----------------------------------------------------------------------------------------------
1987 r91.3 r91.0 99.7 79.8 96.3 r87.4
1988 r93.2 r94.4 101.4 83.6 97.2 r89.7
1989 r94.0 r96.4 102.5 86.3 96.3 r91.8
1990 r96.0 r97.1 101.1 91.4 97.1 r95.3
1991 r98.3 r97.4 99.1 96.4 98.9 r98.1
1992 100.0 100.0 100.0 100.0 100.0 100.0
1993 r101.2 r102.4 101.2 102.7 100.3 r101.6
1994 r103.5 r105.7 102.1 105.0 100.4 r101.5
1995 r106.2 r107.7 101.5 108.1 100.9 r101.8
1996 r108.4 r107.8 99.4 110.8 100.7 r102.3
1997 r112.8 r112.2 99.5 114.7 102.1 r101.7
1998 r115.8 r113.4 97.9 121.0 106.2 r104.5
1999 r117.0 r113.3 96.9 126.3 108.5 r107.9
2000 r120.8 r114.2 94.5 135.4 112.6 r112.1
2001 r123.7 r110.5 89.4 143.2 115.9 r115.8
2002 r130.7 r110.9 84.8 153.2 121.9 r117.2
2003 r137.0 r111.4 81.3 162.2 126.3 r118.4
2004 r141.9 r112.6 79.4 166.5 126.3 r117.3
2005 r148.8 r114.8 77.2 172.5 126.6 r115.9
2006 r148.5 r114.7 77.3 175.1 124.4 r117.9
2007 r151.8 r116.0 76.4 181.4 125.3 r119.5
2008 r153.2 r112.8 73.6 187.9 124.9 r122.6
2009 r157.8 r106.5 r67.5 r194.2 r129.6 r123.0
----------------------------------------------------------------------------------------------
See footnotes following Table 6. May 6, 2010
r=revised Source: Bureau of Labor Statistics
United States Department of Labor
