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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 21-0979
8:30 a.m. (ET) Thursday, June 3, 2021

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

                                          PRODUCTIVITY AND COSTS 
                                       First Quarter 2021, Revised 

(NOTE: This release was reissued on July 20, 2021, due to errors in the first quarter 2021 estimates 
of hours worked for the business, manufacturing, and nonfinancial corporate sectors. The error in hours
worked resulted in errors to related measures, including labor productivity. Estimates in this news release
will not be corrected. Corrected data are available at 
www.bls.gov/bls/errata/corrected-hours-worked-and-labor-productivity-for-labor-productivity-and-costs-2021-Q1.htm.) 

Nonfarm business sector labor productivity increased 5.4 percent in the first quarter of 2021, the U.S. 
Bureau of Labor Statistics reported today, as output increased 8.6 percent and hours worked increased 
3.0 percent. (All quarterly percent changes in this release are seasonally adjusted annual rates.) From the 
first quarter of 2020 to the first quarter of 2021, nonfarm business sector labor productivity increased 4.1 
percent, reflecting a 1.1-percent increase in output and a 2.9-percent decline in hours worked. (See table 
A1.) 

Unit labor costs in the nonfarm business sector increased at an annual rate of 1.7 percent in the first 
quarter of 2021, the combined effect of a 7.2-percent increase in hourly compensation and a 5.4-percent 
increase in productivity. Unit labor costs increased 4.1 percent over the last four quarters, as hourly 
compensation increased 8.3 percent and productivity increased 4.1 percent. (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 productivity 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 first 
quarter of 2021 is the third consecutive quarter with increases in both output and hours worked, 
following historic declines in those measures in the second quarter of 2020. With the 3.0-percent 
increase in the first quarter of 2021, the hours worked index is 4.3 percent lower than it was in the fourth 
quarter of 2019, the last quarter not affected by the COVID-19 pandemic. Output, however, with the 
8.6-percent increase in the first quarter of 2021, is now only 0.5 percent below the level seen in the 
fourth quarter of 2019. (See table 2.)

Manufacturing sector labor productivity decreased 1.7 percent in the first quarter of 2021, as output 
increased 1.4 percent and hours worked increased 3.1 percent. Manufacturing productivity increased 1.8 
percent from the same quarter a year ago. (See tables A1 and 3.)

Unit labor costs in the total manufacturing sector increased 10.7 percent in the first quarter of 2021, 
reflecting an 8.9-percent increase in hourly compensation and a 1.7-percent decrease in productivity. 
Manufacturing unit labor costs increased 5.1 percent from the same quarter a year ago. (See tables A1 
and 3.)

Following strong growth in the fourth quarter of 2020, manufacturing output and hours worked saw 
more modest growth rates in the first quarter of 2021. These measures have not yet fully recovered from 
the historic declines of the second quarter of 2020; output and hours remain 2.3 percent and 4.4 percent 
below their fourth-quarter 2019 levels, respectively. (See table 3.)

Durable goods manufacturing productivity increased 1.1 percent in the first quarter of 2021, reflecting a 
5.7-percent increase in output and a 4.6-percent increase in hours worked. Nondurable goods 
manufacturing productivity decreased 3.7 percent in the first quarter of 2021, as output decreased 3.0 
percent and hours worked increased 0.7 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.

Preliminary first-quarter 2021 measures were announced today for the nonfinancial corporate sector. 
Productivity increased 5.8 percent in the first quarter of 2021 as output increased 8.8 percent and hours 
worked increased 2.8 percent. Productivity increased 6.5 percent over the last four quarters, which is the 
largest four-quarter increase since a 7.9-percent increase in the first quarter of 2010. Unit profits of 
nonfinancial corporations decreased at a 4.7 percent annual rate in the first quarter of 2021 and increased 
18.5 percent over the last four quarters, which is the largest four-quarter increase since an 18.8-percent 
increase in the first quarter of 2012. (See table 6.) 

Revised measures        

Measures released today are based on more recent source data than were available for the preliminary 
report. Regular updates of source data from the BLS, the Bureau of Economic Analysis (BEA), and the 
Board of Governors of the Federal Reserve System are reflected in data for the fourth quarter of 2020 
and the first quarter of 2021. Measures of output for the manufacturing sectors incorporate revised 
annual benchmark data released May 20 by BLS. As a result, quarterly indexes and percent changes for 
output and related measures were subject to revision from first-quarter 2012 to fourth-quarter 2019.

Table B1 presents previous and revised productivity and related measures for the business, nonfarm 
business, and manufacturing sectors for the first quarter of 2021.

In the first quarter of 2021, nonfarm business sector productivity increased 5.4 percent, the same as 
previously reported. Output was revised up 0.2 percentage point and hours worked was revised up 0.1 
percentage point. Unit labor costs increased 1.7 percent rather than decreasing 0.3 percent as previously 
reported, reflecting a 2.1-percentage point upward revision to hourly compensation. In the 
manufacturing sector, productivity was revised down from a 0.1-percent increase to a 1.7-percent 
decrease, reflecting a 1.0-percentage point downward revision to output and a 0.8-percentage point 
upward revision to hours worked. Unit labor costs increased 10.7 percent rather than the preliminary 
estimate of 4.6 percent.  

Table B2 shows previous and revised productivity and related measures for the business, nonfarm 
business, manufacturing, and nonfinancial corporate sectors for the fourth quarter of 2020. 

In the fourth quarter of 2020, labor productivity in the nonfarm business sector decreased at the same 
3.8-percent rate reported May 6. Hourly compensation was revised up from the previously reported 
increase of 1.6 percent to a 9.7-percent increase. As a result, unit labor costs increased 14.0 percent in 
the fourth quarter of 2020, rather than increasing 5.6 percent. Total manufacturing sector productivity 
was revised down by 0.1 percentage point to a 4.4 percent increase. Hourly compensation was revised 
up 13.9 percentage points to a 9.8-percent increase; this led to an upward revision to unit labor costs, 
which increased 5.1 percent rather than decreasing 8.2 percent.

In the nonfinancial corporate sector, productivity rose 16.7 percent in the fourth quarter of 2020 rather 
than increasing 11.6 percent as previously reported, due solely to an upward revision to output. Annual 
average productivity in the nonfinancial corporate sector increased 2.1 percent in 2020, rather than the 
preliminary estimate of 1.8 percent.

Complete quarterly and annual data series can be found on the Productivity and Costs home page: 
www.bls.gov/lpc/#data.
______________  
The preliminary Productivity and Costs news release for second-quarter 2021 is scheduled to be 
released on Tuesday, August 10, 2021 at 8:30 a.m. (ET).




=========================================================================================================================
Table A1. Labor productivity growth and related measures – revised first-quarter 2021
(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            5.4          8.6      3.0        7.2            3.3           1.7
                        A year ago                  4.1          1.1     -2.9        8.3            6.3           4.1
                        
Business                Previous quarter            5.2          8.3      2.9        7.3            3.4           1.9
                        A year ago                  4.0          1.1     -2.8        8.3            6.3           4.1
                        
Manufacturing           Previous quarter           -1.7          1.4      3.1        8.9            5.0          10.7
                        A Year ago                  1.8         -0.9     -2.6        7.0            5.0           5.1
 
 Durable                Previous quarter            1.1          5.7      4.6       11.7            7.6          10.4
 manufacturing          A year ago                  4.0          0.4     -3.5        7.1            5.1           3.0
              
 Nondurable             Previous quarter           -3.7         -3.0      0.7        3.6           -0.1           7.6
 manufacturing          A year ago                 -1.0         -2.2     -1.2        6.9            4.9           8.0
=========================================================================================================================

=========================================================================================================================
Table A2. Labor productivity growth and related measures – preliminary first-quarter 2021
(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                5.8         8.8      2.8        6.7            2.8           0.8
corporate            A year ago                      6.5         3.3     -3.0        9.1            7.1           2.4
=========================================================================================================================

=========================================================================================================================
Table B1. Labor productivity growth and related measures – revised and previously published first-quarter 2021
(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                      5.4         8.6      3.0        7.2            3.3           1.7
                   Previously published              5.4         8.4      2.9        5.1            1.3          -0.3
                        
Business                Revised                      5.2         8.3      2.9        7.3            3.4           1.9
                   Previously published              5.4         8.3      2.8        5.1            1.3          -0.2
                        
Manufacturing           Revised                     -1.7         1.4      3.1        8.9            5.0          10.7
                   Previously published              0.1         2.4      2.3        4.6            0.9           4.6

 Durable                Revised                      1.1         5.7      4.6       11.7            7.6          10.4
 manufacturing     Previously published              0.7         4.6      3.9        6.2            2.4           5.5
                        
 Nondurable             Revised                     -3.7        -3.0      0.7        3.6           -0.1           7.6
 manufacturing     Previously published              0.3         0.1     -0.2        1.6           -2.1           1.2
=========================================================================================================================

=========================================================================================================================
Table B2. Labor productivity growth and related measures – revised and previously published fourth-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                     -3.8         5.8     10.0        9.7            7.1          14.0
                   Previously published             -3.8         5.8     10.0        1.6           -0.8           5.6
                        
Business                Revised                     -4.5         5.8     10.8        8.8            6.2          13.9
                   Previously published             -4.5         5.8     10.8        0.8           -1.6           5.6
                                                                          
Manufacturing           Revised                      4.4        12.4      7.6        9.8            7.2           5.1
                   Previously published              4.5        12.4      7.6       -4.1           -6.4          -8.2

 Durable                Revised                      5.6        11.9      6.0       11.3            8.7           5.4
 manufacturing     Previously published              5.5        11.8      6.0       -6.0           -8.2         -10.9
                        
 Nondurable             Revised                      2.3        12.9     10.3        7.3            4.8           4.9
 manufacturing     Previously published              2.4        13.0     10.3       -0.4           -2.8          -2.8

Nonfinancial            Revised                     16.7        28.8     10.3        7.8            5.3          -7.6
corporate          Previously published             11.6        23.1     10.3        0.3           -2.1         -10.1 
=========================================================================================================================



					TECHNICAL NOTES


Labor Hours

Hours worked data for the labor productivity and cost measures include hours worked for all persons 
working in the sector—wage and salary workers, the self-employed and unpaid family workers. The 
primary source of hours and employment data is the BLS Current Employment Statistics (CES) 
program, which provides monthly survey data on the number of jobs held by 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 (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)

2021 I         5.2 r       8.3        2.9 r      7.3 r      3.4 r      1.9 r      8.9 r      4.7 r

2020 ANNUAL    2.5        -4.1       -6.5        6.9 r      5.6 r      4.2 r     -4.1 r      0.6  

2020 IV       -4.5         5.8       10.8        8.8 r      6.2 r     13.9 r    -13.1 r      1.9  
     III       5.5        44.2       36.7       -4.8       -9.1       -9.7       29.2        4.6  
     II       10.2       -36.8      -42.6       23.7       27.6       12.3      -23.8       -4.3  
     I        -0.3        -6.0       -5.7        8.9        7.8        9.3       -9.5        0.8  

2019 ANNUAL    1.7         2.4        0.7        3.7        1.8        1.9        0.9        1.5  

2019 IV        1.5         2.8        1.3        3.4        0.7        1.9        0.4        1.2  
     III       0.3         2.9        2.6       -0.2       -1.5       -0.5        3.2        1.1  
     II        2.0         1.3       -0.7        1.3       -2.1       -0.7        8.0        3.0  
     I         3.8         3.6       -0.2        9.5        8.7        5.5       -6.0        0.4  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2021 I         4.0         1.1       -2.8        8.3 r      6.3 r      4.1 r     -1.8 r      1.6  

2020 ANNUAL    2.5        -4.1       -6.5        6.9 r      5.6 r      4.2 r     -4.1 r      0.6  

2020 IV        2.5        -2.5       -4.9        8.7 r      7.4 r      6.0 r     -6.2 r      0.7  
     III       4.1        -3.1       -7.0        7.3        6.0        3.1       -2.8        0.5  
     II        2.8       -11.0      -13.4        8.6        8.1        5.6       -8.1       -0.3  
     I         0.9         0.2       -0.7        3.3        1.2        2.4        0.3        1.5  

2019 ANNUAL    1.7         2.4        0.7        3.7        1.8        1.9        0.9        1.5  

2019 IV        1.9         2.6        0.7        3.4        1.4        1.5        1.3        1.4  
     III       1.7         2.3        0.6        2.9        1.2        1.3        1.7        1.5  
     II        1.8         2.2        0.4        4.2        2.3        2.4        0.3        1.5  
     I         1.5         2.6        1.0        4.2        2.5        2.6        0.4        1.6  
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2021 I       112.9 r     122.2 r    108.2 r    133.9 r    116.5 r    118.6 r    105.5 r    112.8 r

2020 ANNUAL  111.0       116.6      105.0      128.5 r    113.8 r    115.8 r    104.6 r    110.9  

2020 IV      111.5       119.7      107.4      131.6 r    115.5 r    118.0 r    103.2 r    111.5  
     III     112.8       118.1      104.7      128.8      113.8      114.2      106.9      111.0  
     II      111.3       107.7       96.8      130.4      116.5      117.2      100.3      109.8  
     I       108.6       120.8      111.2      123.7      109.6      113.8      107.4      111.0  

2019 ANNUAL  108.3       121.6      112.3      120.3      107.8      111.1      109.1      110.2  

2019 IV      108.7       122.7      112.9      121.1      107.6      111.3      110.1      110.8  
     III     108.3       121.9      112.5      120.1      107.4      110.8      110.0      110.4  
     II      108.3       121.0      111.8      120.1      107.8      111.0      109.1      110.2  
     I       107.7       120.6      112.0      119.7      108.4      111.2      107.0      109.4  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                       June 3, 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)

2021 I         5.4         8.6 r      3.0 r      7.2 r      3.3 r      1.7 r      8.2 r      4.3 r

2020 ANNUAL    2.5        -4.2       -6.6        7.0 r      5.6 r      4.3 r     -4.1 r      0.7  

2020 IV       -3.8         5.8       10.0        9.7 r      7.1 r     14.0 r    -14.4 r      1.3  
     III       4.2        44.1       38.2       -5.8      -10.0       -9.6       28.2        4.3  
     II       11.2       -36.8      -43.2       24.4       28.4       11.9      -22.3       -3.6  
     I        -0.8        -6.4       -5.6        9.0        7.9        9.8      -10.1        0.8  

2019 ANNUAL    1.8         2.5        0.7        3.7        1.8        1.9        1.1        1.5  

2019 IV        1.6         2.8        1.2        3.5        0.9        1.9        0.3        1.2  
     III       0.5         2.9        2.4       -0.1       -1.4       -0.6        3.1        1.0  
     II        1.9         1.2       -0.7        1.2       -2.2       -0.7        8.2        3.0  
     I         3.9         3.8        0.0        9.3        8.4        5.2       -5.7        0.4  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2021 I         4.1         1.1       -2.9        8.3 r      6.3 r      4.1 r     -2.0 r      1.5  

2020 ANNUAL    2.5        -4.2       -6.6        7.0 r      5.6 r      4.3 r     -4.1 r      0.7  

2020 IV        2.6        -2.6       -5.0        8.8 r      7.5 r      6.1 r     -6.4 r      0.7  
     III       4.0        -3.2       -6.9        7.2        5.9        3.1       -2.6        0.6  
     II        3.0       -11.1      -13.7        8.8        8.3        5.6       -7.8       -0.2  
     I         0.8         0.1       -0.7        3.3        1.2        2.5        0.2        1.5  

2019 ANNUAL    1.8         2.5        0.7        3.7        1.8        1.9        1.1        1.5  

2019 IV        2.0         2.7        0.7        3.4        1.3        1.4        1.4        1.4  
     III       1.7         2.3        0.7        2.9        1.1        1.2        1.8        1.4  
     II        1.8         2.2        0.3        4.2        2.3        2.3        0.6        1.6  
     I         1.6         2.6        1.1        4.2        2.5        2.6        0.5        1.7  
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2021 I       112.7 r     121.8 r    108.1 r    134.2 r    116.8 r    119.1 r    105.9 r    113.4 r

2020 ANNUAL  110.7       116.2      105.0      128.8 r    114.0 r    116.3 r    105.5 r    111.6  

2020 IV      111.3       119.4      107.3      131.9 r    115.8 r    118.6 r    103.9 r    112.2  
     III     112.3       117.7      104.8      128.9      113.9      114.7      108.0      111.8  
     II      111.2       107.4       96.6      130.8      116.9      117.7      101.5      110.6  
     I       108.3       120.5      111.3      123.9      109.8      114.4      108.1      111.7  

2019 ANNUAL  108.0       121.3      112.4      120.4      107.9      111.5      110.0      110.8  

2019 IV      108.5       122.5      112.9      121.2      107.8      111.8      111.0      111.4  
     III     108.1       121.6      112.6      120.2      107.5      111.3      110.9      111.1  
     II      107.9       120.8      111.9      120.3      107.9      111.4      110.1      110.8  
     I       107.4       120.4      112.1      119.9      108.5      111.6      107.9      110.0  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                       June 3, 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)

2021 I            -1.7 r          1.4 r          3.1 r          8.9 r          5.0 r         10.7 r

2020 ANNUAL       -0.1 r         -6.8 r         -6.6            5.6 r          4.3 r          5.8 r

2020 IV            4.4 r         12.4            7.6            9.8 r          7.2 r          5.1 r
     III          20.7           57.9           30.8          -12.4          -16.3          -27.4  
     II          -13.4          -46.4          -38.1           25.0           29.0           44.3  
     I             1.8           -5.5           -7.2            6.1            5.1            4.3  

2019 ANNUAL       -1.4 r         -1.7 r         -0.2            3.1            1.2            4.6 r

2019 IV           -1.0 r         -0.8 r          0.1            5.6            2.9            6.7 r
     III          -1.4 r         -0.4 r          1.1           -1.5           -2.8           -0.1 r
     II           -3.6 r         -5.0 r         -1.4            2.0           -1.5            5.8 r
     I            -1.1 r         -4.2 r         -3.1            7.0            6.2            8.2 r
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2021 I             1.8 r         -0.9 r         -2.6 r          7.0 r          5.0 r          5.1 r

2020 ANNUAL       -0.1 r         -6.8 r         -6.6            5.6 r          4.3 r          5.8 r

2020 IV            2.7           -2.6           -5.2            6.3 r          5.0 r          3.5 r
     III           1.3 r         -5.6 r         -6.8            5.3            3.9            3.9 r
     II           -3.7 r        -15.9 r        -12.7            8.4            7.9           12.5 r
     I            -1.1 r         -2.9 r         -1.9            3.0            0.9            4.1 r

2019 ANNUAL       -1.4 r         -1.7 r         -0.2            3.1            1.2            4.6 r

2019 IV           -1.8 r         -2.6 r         -0.8            3.2            1.2            5.1 r
     III          -1.8 r         -2.5 r         -0.7            2.6            0.8            4.5 r
     II           -1.6 r         -1.7 r         -0.1            4.0            2.1            5.7 r
     I            -0.5 r          0.1 r          0.6            2.5            0.9            3.1 r
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2021 I            97.5 r         99.0 r        101.5 r        126.8 r        110.4 r        130.1 r

2020 ANNUAL       95.8 r         95.0 r         99.2          122.2 r        108.2 r        127.6 r

2020 IV           97.9 r         98.7 r        100.8          124.2 r        109.0 r        126.8 r
     III          96.9 r         95.9 r         99.0          121.3          107.1          125.2 r
     II           92.4 r         85.5 r         92.5          125.4          112.0          135.6 r
     I            95.8 r         99.9 r        104.3          118.6          105.1          123.8 r

2019 ANNUAL       95.9 r        101.9 r        106.2          115.7          103.7          120.6 r

2019 IV           95.4 r        101.4 r        106.3          116.8          103.8          122.5 r
     III          95.6 r        101.6 r        106.2          115.2          103.1          120.5 r
     II           96.0 r        101.7 r        105.9          115.7          103.8          120.6 r
     I            96.8 r        103.0 r        106.3          115.1          104.2          118.9 r
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                       June 3, 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)

2021 I             1.1 r          5.7 r          4.6 r         11.7 r          7.6 r         10.4 r

2020 ANNUAL       -1.3 r         -9.2 r         -8.0            5.4 r          4.1 r          6.8 r

2020 IV            5.6 r         11.9 r          6.0           11.3 r          8.7 r          5.4 r
     III          48.2 r        102.8           36.9          -16.5          -20.3          -43.7  
     II          -26.0          -57.7          -42.8           26.9           31.0           71.6  
     I            -2.4           -9.8           -7.6            4.8            3.7            7.3  

2019 ANNUAL       -1.7 r         -1.8 r          0.0            2.6            0.7            4.4 r

2019 IV           -1.3 r         -2.4 r         -1.1            8.8            6.0           10.2 r
     III          -1.0 r         -0.3 r          0.8           -2.9           -4.1           -1.8 r
     II           -2.6 r         -4.9 r         -2.4            1.2           -2.2            3.9 r
     I            -3.3 r         -6.1 r         -2.9            6.8            6.0           10.4 r
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2021 I             4.0 r          0.4 r         -3.5 r          7.1 r          5.1 r          3.0 r

2020 ANNUAL       -1.3 r         -9.2 r         -8.0            5.4 r          4.1 r          6.8 r

2020 IV            3.1           -3.5 r         -6.4            5.4 r          4.2 r          2.3 r
     III           1.4 r         -6.8 r         -8.0            4.8            3.5            3.4 r
     II           -8.4 r        -21.9 r        -14.8            8.9            8.4           18.8 r
     I            -1.8 r         -4.4 r         -2.6            2.9            0.8            4.8 r

2019 ANNUAL       -1.7 r         -1.8 r          0.0            2.6            0.7            4.4 r

2019 IV           -2.1 r         -3.4 r         -1.4            3.4            1.3            5.6 r
     III          -2.0 r         -2.4 r         -0.4            1.6           -0.2            3.7 r
     II           -1.7 r         -1.4 r          0.3            3.2            1.3            5.0 r
     I            -1.2 r          0.2 r          1.4            2.1            0.5            3.4 r
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2021 I            99.3 r         99.7 r        100.4 r        127.7 r        111.1 r        128.6 r

2020 ANNUAL       95.3 r         93.3 r         97.9          122.6 r        108.5 r        128.6 r

2020 IV           99.0 r         98.3 r         99.3          124.2 r        109.1 r        125.4 r
     III          97.7 r         95.6 r         97.8          120.9          106.8          123.8 r
     II           88.5 r         80.1 r         90.5          126.5          113.0          142.9 r
     I            95.5 r         99.3 r        104.0          119.2          105.7          124.9 r

2019 ANNUAL       96.6 r        102.7 r        106.4          116.3          104.3          120.4 r

2019 IV           96.0 r        101.9 r        106.1          117.8          104.7          122.7 r
     III          96.4 r        102.5 r        106.4          115.4          103.2          119.7 r
     II           96.6 r        102.6 r        106.2          116.2          104.3          120.3 r
     I            97.2 r        103.9 r        106.8          115.9          104.9          119.1 r
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                       June 3, 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)

2021 I            -3.7 r         -3.0 r          0.7 r          3.6 r         -0.1 r          7.6 r

2020 ANNUAL        0.2 r         -4.1 r         -4.3            6.5 r          5.2 r          6.3 r

2020 IV            2.3 r         12.9 r         10.3            7.3 r          4.8 r          4.9 r
     III           1.5           23.3           21.5           -5.1           -9.4           -6.5 r
     II           -3.9          -32.1          -29.4           23.9           27.9           29.0  
     I             6.2           -0.7           -6.4            9.1            7.9            2.7  

2019 ANNUAL       -1.0 r         -1.6 r         -0.6            4.0            2.2            5.1 r

2019 IV           -1.3 r          0.9 r          2.3            0.1           -2.5            1.4 r
     III          -2.0 r         -0.5 r          1.5            1.2           -0.1            3.2 r
     II           -5.4 r         -5.0 r          0.5            3.7            0.2            9.6 r
     I             1.4 r         -2.1 r         -3.5            7.4            6.6            5.8 r
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2021 I            -1.0 r         -2.2 r         -1.2 r          6.9 r          4.9 r          8.0 r

2020 ANNUAL        0.2 r         -4.1 r         -4.3            6.5 r          5.2 r          6.3 r

2020 IV            1.5           -1.6           -3.0            8.3 r          7.0 r          6.8 r
     III           0.5 r         -4.3 r         -4.8            6.4            5.1            5.9 r
     II           -0.3 r         -9.3 r         -9.0            8.1            7.7            8.5 r
     I            -0.7 r         -1.3 r         -0.6            3.4            1.3            4.2 r

2019 ANNUAL       -1.0 r         -1.6 r         -0.6            4.0            2.2            5.1 r

2019 IV           -1.9 r         -1.7 r          0.2            3.0            1.0            5.0 r
     III          -1.5 r         -2.6 r         -1.1            4.5            2.7            6.0 r
     II           -1.4 r         -2.1 r         -0.7            5.4            3.5            6.9 r
     I             0.7 r          0.0 r         -0.7            3.1            1.5            2.5 r
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2021 I            96.2 r         99.6 r        103.5 r        125.6 r        109.3 r        130.6 r

2020 ANNUAL       96.8 r         98.0 r        101.3          122.0 r        108.0 r        126.1 r

2020 IV           97.1 r        100.4 r        103.3          124.5 r        109.3 r        128.2 r
     III          96.6 r         97.4 r        100.8          122.3          108.1          126.7 r
     II           96.2 r         92.4 r         96.0          123.9          110.8          128.8 r
     I            97.2 r        101.8 r        104.8          117.5          104.1          120.9 r

2019 ANNUAL       96.5 r        102.2 r        105.9          114.5          102.7          118.6 r

2019 IV           95.7 r        102.0 r        106.5          115.0          102.2          120.1 r
     III          96.1 r        101.8 r        105.9          114.9          102.8          119.7 r
     II           96.5 r        101.9 r        105.5          114.6          102.9          118.7 r
     I            97.9 r        103.2 r        105.4          113.6          102.8          116.0 r
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                       June 3, 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)

2021 I         5.8       8.8      2.8       6.7       2.8       0.8     22.3      6.6     -4.7      5.1  

2020 ANNUAL    2.1 r    -4.3 r   -6.3       7.5 r     6.2 r     5.3 r   -9.3 r    0.7     -0.1 r    0.6  

2020 IV       16.7 r    28.8 r   10.3       7.8 r     5.3 r    -7.6 r   62.3 r    7.6 r  -32.3 r    1.1  
     III      -0.6      32.0     32.8      -5.9     -10.1      -5.3    -24.9    -10.9    228.3      4.8  
     II        4.9     -38.3    -41.2      30.8      35.0      24.7    -49.2     -4.0     -6.7     -4.3  
     I         0.3      -4.0     -4.3       8.3       7.2       7.9     10.3      8.7    -44.1      0.6  

2019 ANNUAL    0.7       1.6      0.9       3.8       1.9       3.1      1.9      2.7     -3.3      1.9  

2019 IV        1.4       2.6      1.1       2.6       0.0       1.2     -2.3      0.1     12.4      1.5  
     III      -0.8      -0.1      0.6       0.1      -1.2       0.9      6.6      2.6     -5.3      1.6  
     II        0.8       1.0      0.3       1.1      -2.3       0.3      1.5      0.7     16.1      2.4  
     I         2.2       2.9      0.7      11.9      11.1       9.5      3.3      7.5    -30.8      1.7  
---------------------------------------------------------------------------------------------------------
                       Percent change from corresponding quarter of previous year

2021 I         6.5       3.3     -3.0       9.1       7.1       2.4     -6.7     -0.5     18.5      1.6  

2020 ANNUAL    2.1 r    -4.3 r   -6.3       7.5 r     6.2 r     5.3 r   -9.3 r    0.7     -0.1 r    0.6  

2020 IV        5.1 r     0.2 r   -4.7       9.5 r     8.2 r     4.2 r   -9.1 r    0.0 r    3.7 r    0.5  
     III       1.5      -5.4     -6.8       8.2       6.8       6.6    -19.9     -1.8     17.8      0.6  
     II        1.4     -11.8    -13.0       9.8       9.4       8.3    -12.6      1.7    -13.7     -0.2  
     I         0.4      -0.2     -0.6       3.0       0.8       2.5      3.9      3.0     -8.9      1.5  

2019 ANNUAL    0.7       1.6      0.9       3.8       1.9       3.1      1.9      2.7     -3.3      1.9  

2019 IV        0.9       1.6      0.7       3.8       1.7       2.9      2.2      2.7     -3.9      1.8  
     III       0.3       1.0      0.7       3.4       1.6       3.0      3.4      3.1     -6.1      1.9  
     II        1.2       1.9      0.8       4.2       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  
---------------------------------------------------------------------------------------------------------
                                            Indexes 2012=100

2021 I       109.7     120.0    109.4     134.6     117.1     122.7    102.9    116.1    100.2    113.8  

2020 ANNUAL  104.9 r   111.7 r  106.5     129.3 r   114.5 r   123.3 r   97.2 r  114.6 r   95.4 r  111.9  

2020 IV      108.1 r   117.5 r  108.6     132.5 r   116.3 r   122.5 r   97.8 r  114.3 r  101.4 r  112.4  
     III     104.1     110.3    106.0     130.0     114.8     124.9     86.7    112.2    111.8    112.1  
     II      104.2     102.9     98.7     132.0     117.9     126.6     93.1    115.5     83.1    110.8  
     I       103.0     116.1    112.8     123.4     109.4     119.8    110.3    116.7     84.5    112.1  

2019 ANNUAL  102.7     116.7    113.7     120.3     107.8     117.2    107.1    113.8     95.4    111.2  

2019 IV      102.9     117.3    114.0     121.0     107.5     117.6    107.6    114.3     97.8    111.9  
     III     102.5     116.6    113.7     120.2     107.5     117.2    108.2    114.2     95.0    111.5  
     II      102.7     116.6    113.5     120.2     107.8     117.0    106.5    113.5     96.3    111.0  
     I       102.5     116.3    113.4     119.8     108.5     116.9    106.1    113.3     92.7    110.4  
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                             June 3, 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.

SIZE OF REVISIONS:  Productivity and cost measures are revised on a regular schedule as more 
complete data become available. The first estimate is published within 40 days of the close of the 
reference quarter, the second estimate approximately 30 days later, and the third estimate approximately 
60 days after the second estimate. Based on past revisions, the third estimate of nonfarm business sector 
quarterly labor productivity growth has differed from the first estimate by -1.0 to +1.4 percentage point 
about 80 percent of the time. This interval is based on estimates for reference quarters from the first 
quarter of 2001 to the fourth quarter of 2020. For more about revisions to labor productivity growth see 
“How large are revisions to estimates of quarterly labor productivity growth?” at 
www.bls.gov/osmr/research-papers/2021/ec210040.htm.

					Table Footnotes

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

(2) The change for recent quarters is based on the Consumer Price Index for all urban consumers 
(CPI-U). The trend from 1978-2020 is based on the Consumer Price Index Retroactive series (CPI-U-
RS).

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

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

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

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

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

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

Last Modified Date: July 20, 2021