Internet address: http://www.bls.gov/lpc/ USDL 08-0756
Historical, technical TRANSMISSION OF THIS
information: (202) 691-5606 MATERIAL IS EMBARGOED
Current data: (202) 691-5200 UNTIL 8:30 A.M. EDT,
Media contact: (202) 691-5902 WEDNESDAY, JUNE 4, 2008.
PRODUCTIVITY AND COSTS
First Quarter 2008, Revised
The Bureau of Labor Statistics of the U.S. Department of Labor today
reported revised productivity data--as measured by output per hour of all
persons--for the first quarter of 2008. The revised seasonally adjusted
annual rates of productivity change in the first quarter were:
2.4 percent in the business sector and
2.6 percent in the nonfarm business sector.
In both sectors, the first-quarter productivity gains were greater than the
preliminary estimates reported on May 7, due primarily to upward revisions to
output growth.
In manufacturing, the revised productivity changes in the first quarter
were:
3.6 percent in manufacturing,
2.6 percent in durable goods manufacturing, and
5.7 percent in nondurable goods manufacturing.
Manufacturing productivity growth was slower in the first quarter of
2008 than reported on May 7 as output was revised down by more than hours.
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. First-quarter
measures are summarized in table A and appear in detail in tables 1 through
5.
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 prepared by the Board of Governors
of the Federal Reserve System. See Technical Notes for further information
on data sources.
------------------------------------------------------------------------------
Table A. Productivity and costs: Revised first-quarter 2008 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 2.4 0.6 -1.7 4.8 0.4 2.3
Nonfarm business 2.6 0.7 -1.8 4.9 0.6 2.2
Manufacturing 3.6 -1.2 -4.7 7.9 3.5 4.2
Durable 2.6 -0.9 -3.4 7.5 3.1 4.8
Nondurable 5.7 -1.6 -6.9 8.5 4.0 2.6
------------------------------------------------------------------------------
Percent change from same quarter a year ago
Business 3.4 2.7 -0.7 4.1 -0.1 0.7
Nonfarm business 3.3 2.7 -0.6 4.0 -0.1 0.7
Manufacturing 4.0 1.9 -2.1 3.8 -0.3 -0.2
Durable 5.5 3.5 -1.9 3.7 -0.5 -1.8
Nondurable 2.5 0.0 -2.4 4.2 0.0 1.6
------------------------------------------------------------------------------
Business
Business sector productivity grew 2.4 percent in the first quarter of
2008 as output increased 0.6 percent and hours worked by all persons--
employees, proprietors, and unpaid family workers--declined 1.7 percent
(seasonally adjusted annual rates). When the first quarter of 2008 is
compared with the first quarter of 2007, output per hour in the business
sector increased 3.4 percent--the largest four-quarter gain since a 3.4
percent increase from the second quarter of 2003 to the second quarter of
2004 (see tables A and 1).
Hourly compensation increased at a 4.8 percent annual rate in the first
quarter of 2008. This measure of compensation includes wages and salaries,
supplements, employer contributions to employee benefit plans, and taxes.
Real hourly compensation, which takes into account changes in consumer
prices, rose 0.4 percent in the first quarter of 2008 following a 0.6 percent
gain in the previous quarter.
The change in unit labor costs approximates the change in hourly
compensation less the change in productivity. In the first quarter of 2008
these costs grew at a 2.3 percent annual rate, but from the first quarter of
2007 to the first quarter of 2008 unit labor costs rose just 0.7 percent.
The implicit price deflator for business output, which reflects changes in
both unit labor costs and unit nonlabor payments, grew 2.0 percent in the
first quarter of 2008.
Nonfarm business
During the first quarter of 2008, productivity rose 2.6 percent in the
nonfarm business sector; output increased 0.7 percent and hours of all
persons fell 1.8 percent (seasonally-adjusted annual rates). From the first
quarter of 2007 to the first quarter of 2008, output per hour in the nonfarm
business sector increased 3.3 percent, the largest four-quarter change since
a 3.8 percent increase from the second quarter of 2003 to the second quarter
of 2004. Nonfarm business productivity had increased at an average annual
rate of 2.7 percent from 2000 through 2006.
Hourly compensation increased 4.9 percent in the nonfarm business sector
in the first quarter of 2008. The measure increased 6.6 percent in the
fourth quarter, as revised. When hourly compensation is adjusted for the
rise in consumer prices, real hourly compensation grew 1.5 percent in the
fourth quarter of 2007 and 0.6 percent in the first quarter of 2008.
Unit labor costs rose 2.2 percent in the first quarter of 2008. As in
the business sector, the percent change from the same quarter a year ago was
0.7 percent. The implicit price deflator for nonfarm business output
increased by 2.3 percent in the first quarter of 2008.
Manufacturing
Productivity grew at a 3.6 percent annual rate in the manufacturing
sector during the first quarter of 2008, reflecting a 1.2 percent decrease in
output and a 4.7 percent decrease in hours (table A). This was the largest
decline in hours since a 6.3 percent drop in the third quarter of 2003.
Output per hour rose at the highest rate in three years, 5.7 percent, in
nondurable goods industries during the first quarter; hours fell by 6.9
percent and output declined 1.6 percent (tables 3, 4, and 5). Total
manufacturing productivity grew 4.0 percent from the first quarter of 2007 to
the first quarter of 2008, similar to the 3.8 percent average annual increase
from 2000 to 2006.
Hourly compensation in manufacturing grew 7.9 percent during the first
quarter of 2008. Real hourly compensation, which takes into account changes
in consumer prices, increased 3.5 percent for all manufacturing workers, as a
3.1 percent rise in durable manufacturing real hourly compensation combined
with a 4.0 percent rise in the nondurable goods industries.
Unit labor costs rose 4.2 percent in manufacturing during the first
quarter of 2008, as hourly compensation increased faster than productivity in
both subsectors. However, over the past four quarters total manufacturing
unit labor costs edged down 0.2 percent, as durable goods unit labor costs
declined 1.8 percent and nondurable goods unit labor costs rose 1.6 percent.
Nonfinancial corporations
Preliminary first-quarter 2008 measures of productivity and costs for
nonfinancial corporations also were announced today (tables B and 6).
Productivity rose 4.6 percent in the first quarter as output rose 3.2 percent
and employee-hours declined 1.4 percent (seasonally adjusted annual rates).
From the first quarter of 2007 to the first quarter of 2008 productivity grew
3.0 percent; it had grown 2.6 percent per year from 2000 to 2006. The
nonfinancial corporate sector includes all corporations doing business in the
United States, except those classified as depository institutions,
nondepository institutions, security and commodity brokers, insurance
carriers, regulated investment offices, small business investment offices,
and real estate investment trusts.
------------------------------------------------------------------------------
Table B. Nonfinancial corporations: Preliminary first-quarter 2008
productivity and cost measures
(Seasonally adjusted annual rates)
------------------------------------------------------------------------------
Real
Hourly hourly Unit Implicit
Produc- compen- compen- labor Unit price
Period tivity Output Hours sation sation costs profits deflator
------------------------------------------------------------------------------
Percent change from preceding quarter
2008 I 4.6 3.2 -1.4 5.9 1.5 1.2 -1.5 0.5
------------------------------------------------------------------------------
Percent change from same quarter a year ago
2008 I 3.0 3.0 0.0 4.2 0.0 1.1 -5.5 0.1
------------------------------------------------------------------------------
Hourly compensation increased 5.9 percent during the first quarter of
2008, the same as the revised fourth quarter 2007 increase. Taking the 4.3
percent rise in consumer prices into account, real hourly compensation
increased 1.5 percent in the first quarter of 2008, more than the 0.8 percent
increase one quarter earlier. Unit labor costs in nonfinancial corporations
rose 1.2 percent in the first quarter of 2008, and 1.1 percent over the last
four quarters.
REVISED MEASURES
Previous and revised measures for the first quarter of 2008 in the
business, nonfarm business, and manufacturing sectors are compared in table
C.
------------------------------------------------------------------------------
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
------------------------------------------------------------------------------
First quarter 2008
Business:
Previous 1.9 0.2 -1.6 4.2 -0.1 2.2
Revised 2.4 0.6 -1.7 4.8 0.4 2.3
Nonfarm business:
Previous 2.2 0.4 -1.8 4.4 0.1 2.2
Revised 2.6 0.7 -1.8 4.9 0.6 2.2
Manufacturing:
Previous 4.1 -0.3 -4.2 6.7 2.3 2.5
Revised 3.6 -1.2 -4.7 7.9 3.5 4.2
Fourth quarter 2007
Business:
Previous 0.9 0.1 -0.7 3.7 -1.3 2.8
Revised 0.9 0.1 -0.7 5.6 0.6 4.7
Nonfarm business:
Previous 1.8 0.2 -1.6 4.6 -0.4 2.8
Revised 1.8 0.2 -1.6 6.6 1.5 4.7
Manufacturing:
Previous 4.2 -0.4 -4.4 4.3 -0.6 0.2
Revised 4.2 -0.4 -4.4 7.4 2.3 3.1
Annual average 2007
Business:
Previous 1.9 2.3 0.4 5.0 2.1 3.1
Revised 1.9 2.3 0.4 5.1 2.2 3.2
Nonfarm business:
Previous 1.8 2.3 0.5 4.9 2.1 3.1
Revised 1.8 2.3 0.5 5.1 2.2 3.2
Manufacturing:
Previous 3.4 1.6 -1.7 5.4 2.5 1.9
Revised 3.4 1.6 -1.7 5.6 2.7 2.1
------------------------------------------------------------------------------
In the business and nonfarm business sectors, productivity was revised
up along with output, as hours were little changed. Upward revisions to
hourly compensation offset those to productivity, leaving the increase in
unit labor costs about the same as reported May 7.
In the manufacturing sector, productivity growth was revised down in the
first quarter as output was revised down by more than hours. The downward
revision to total manufacturing productivity combined with an upward revision
to hourly compensation to revise the increase in unit labor costs from 2.5
percent to 4.2 percent.
Table C also presents preliminary and revised results for the fourth
quarter and annual average of 2007. Only hourly compensation and related
measures were revised; productivity, output, and hours were not. These
revisions resulted from incorporation of revised data on employee
compensation from the Bureau of Economic Analysis (BEA) of the U.S.
Department of Commerce, released May 29. In the fourth quarter of 2007,
hourly compensation, real hourly compensation, and unit labor costs were
revised up in all sectors. Annual averages of these measures for 2007 were
also revised up.
REVISED MEASURES: NONFINANCIAL CORPORATIONS
Fourth quarter and annual average 2007 measures were revised for the
nonfinancial corporate sector. As revised, productivity increased at a 2.4
percent annual rate in the fourth quarter of 2007, reflecting similar growth
in output and unchanged employee-hours. An upward revision to hourly
compensation outpaced the revision to productivity, and as a result unit
labor costs rose slightly faster than reported May 7. For the year 2007,
productivity was revised up slightly due solely to an upward revision to
output.
------------------------------------------------------------------------------
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
------------------------------------------------------------------------------
Fourth quarter 2007
Previous 0.9 0.9 0.0 3.5 -1.4 2.6 -16.9 0.3
Revised 2.4 2.4 0.0 5.9 0.8 3.4 -18.2 0.3
Annual average 2007
Previous 1.4 2.1 0.7 4.7 1.8 3.2 -5.7 1.6
Revised 1.5 2.2 0.7 4.8 1.9 3.2 -5.8 1.6
------------------------------------------------------------------------------
Next release date
The next release of Productivity and Costs is scheduled for 8:30 AM EDT,
Friday, Aug. 8, 2008. Preliminary second-quarter measures for business,
nonfarm business, and manufacturing will be released at that time. The Aug.
8 release also will incorporate the three-year revision of the National
Income and Product Accounts.
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 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
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
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
2006 I 136.3 163.2 119.7 168.3 120.8 123.4 133.0 127.0
II 136.7 164.2 120.1 168.1 119.6 123.0 136.6 128.0
III 136.1 164.4 120.8 168.7 118.9 123.9 136.7 128.7
IV 136.5 165.5 121.2 173.5 122.7 127.1 132.0 128.9
ANNUAL 136.4 164.3 120.5 169.6 120.5 124.4 134.6 128.2
2007 I 136.8 165.6 121.0 176.1 123.5 128.7 132.8 130.2
II 138.1 167.3 121.2 177.1 122.8 128.3 135.4 130.9
III 140.3 169.7 120.9 178.7 123.1 127.4 137.1 131.0
IV 140.6 169.7 120.7 r181.2 r123.3 r128.9 r136.3 131.7
ANNUAL 139.0 168.1 121.0 r178.3 r123.2 r128.3 r135.4 131.0
2008 I r141.4 r170.0 r120.2 r183.3 r123.4 r129.6 r136.8 r132.3
---------------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2006 I 2.4 5.5 3.0 7.1 5.2 4.6 0.0 2.8
II 1.0 2.5 1.5 -0.5 -3.9 -1.5 11.3 3.3
III -1.7 0.6 2.3 1.5 -2.4 3.2 0.4 2.1
IV 1.2 2.6 1.4 11.9 13.6 10.6 -12.9 0.8
ANNUAL 1.0 3.1 2.1 4.0 0.7 2.9 2.9 2.9
2007 I 0.9 0.2 -0.8 6.2 2.5 5.2 2.3 4.1
II 3.8 4.4 0.5 2.4 -2.1 -1.4 8.2 2.2
III 6.4 5.7 -0.7 3.7 0.9 -2.6 5.2 0.3
IV 0.9 0.1 -0.7 r5.6 r0.6 r4.7 r-2.3 1.9
ANNUAL 1.9 2.3 0.4 r5.1 r2.2 r3.2 r0.6 2.2
2008 I r2.4 r0.6 r-1.7 r4.8 r0.4 r2.3 r1.5 2.0
---------------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2006 I 1.5 3.8 2.3 4.2 0.5 2.7 3.8 3.1
II 1.8 3.6 1.8 4.0 0.0 2.1 5.2 3.3
III 0.2 2.4 2.2 2.8 -0.5 2.6 3.5 3.0
IV 0.7 2.8 2.1 4.9 2.9 4.1 -0.7 2.2
ANNUAL 1.0 3.1 2.1 4.0 0.7 2.9 2.9 2.9
2007 I 0.4 1.5 1.1 4.7 2.2 4.3 -0.1 2.6
II 1.0 1.9 0.9 5.4 2.7 4.3 -0.8 2.3
III 3.1 3.2 0.1 6.0 3.5 2.8 0.3 1.8
IV 3.0 2.6 -0.4 r4.4 r0.4 r1.4 r3.3 2.1
ANNUAL 1.9 2.3 0.4 r5.1 r2.2 r3.2 r0.6 2.2
2008 I r3.4 r2.7 r-0.7 r4.1 r-0.1 r0.7 r3.1 1.6
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6. June 4, 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
2006 I 135.2 163.4 120.8 167.0 119.9 123.5 134.9 127.7
II 135.7 164.4 121.2 167.0 118.8 123.1 138.8 128.9
III 135.1 164.7 121.9 167.6 118.1 124.0 138.6 129.4
IV 135.6 165.7 122.2 172.5 122.0 127.2 133.4 129.5
ANNUAL 135.4 164.5 121.5 168.5 119.7 124.5 136.4 128.9
2007 I 136.1 165.9 121.9 175.2 122.8 128.8 133.8 130.6
II 137.0 167.6 122.4 175.8 121.9 128.4 136.4 131.3
III 139.0 169.9 122.3 177.2 122.0 127.5 137.9 131.3
IV 139.6 170.0 121.8 r180.1 r122.5 r129.0 r136.8 131.9
ANNUAL 137.9 168.4 122.1 r177.1 r122.3 r128.4 r136.2 131.3
2008 I r140.5 r170.3 r121.2 r182.3 r122.7 r129.7 r137.5 r132.6
---------------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2006 I 2.2 5.7 3.4 6.9 4.9 4.5 0.6 3.0
II 1.3 2.4 1.1 0.0 -3.5 -1.3 12.1 3.7
III -1.6 0.8 2.4 1.5 -2.5 3.1 -0.5 1.6
IV 1.4 2.6 1.1 12.3 14.0 10.7 -14.2 0.3
ANNUAL 1.0 3.2 2.2 3.9 0.6 2.9 3.1 3.0
2007 I 1.3 0.3 -0.9 6.4 2.7 5.0 1.3 3.6
II 2.7 4.2 1.5 1.3 -3.2 -1.3 7.9 2.1
III 6.0 5.6 -0.4 3.3 0.6 -2.5 4.5 0.1
IV 1.8 0.2 -1.6 r6.6 r1.5 r4.7 r-3.3 1.6
ANNUAL 1.8 2.3 0.5 r5.1 r2.2 r3.2 r-0.2 1.9
2008 I r2.6 r0.7 -1.8 r4.9 r0.6 2.2 r2.3 r2.3
---------------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2006 I 1.4 3.8 2.4 4.2 0.4 2.8 4.1 3.3
II 1.6 3.6 2.0 3.8 -0.1 2.2 5.7 3.5
III 0.1 2.4 2.3 2.7 -0.6 2.6 3.6 3.0
IV 0.8 2.8 2.0 5.0 3.0 4.2 -1.0 2.2
ANNUAL 1.0 3.2 2.2 3.9 0.6 2.9 3.1 3.0
2007 I 0.6 1.5 0.9 4.9 2.4 4.3 -0.8 2.3
II 1.0 2.0 1.0 5.3 2.5 4.3 -1.7 1.9
III 2.8 3.2 0.3 5.8 3.3 2.8 -0.5 1.5
IV 2.9 2.6 -0.4 r4.4 r0.4 r1.4 r2.5 1.8
ANNUAL 1.8 2.3 0.5 r5.1 r2.2 r3.2 r-0.2 1.9
2008 I r3.3 r2.7 -0.6 r4.0 r-0.1 r0.7 r2.8 1.5
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6. June 4, 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
2006 I 172.6 147.2 85.3 172.4 123.8 99.9
II 172.7 147.4 85.4 170.5 121.3 98.7
III 174.5 148.0 84.8 171.6 120.9 98.4
IV 175.4 147.4 84.0 177.4 125.5 101.1
ANNUAL 173.8 147.5 84.9 173.0 122.8 99.5
2007 I 177.0 147.8 83.5 181.7 127.4 102.7
II 178.7 149.6 83.7 181.6 125.9 101.6
III 180.6 151.2 83.7 181.9 125.2 100.7
IV r182.5 r151.0 82.8 r185.2 r126.0 r101.5
ANNUAL r179.7 r149.9 83.4 r182.6 r126.1 r101.6
2008 I r184.1 r150.6 r81.8 r188.7 r127.0 r102.5
--------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2006 I -0.6 1.8 2.4 9.1 7.1 9.7
II 0.2 0.6 0.4 -4.4 -7.7 -4.6
III 4.3 1.6 -2.5 2.7 -1.3 -1.5
IV 2.2 -1.7 -3.8 14.1 15.8 11.6
ANNUAL 1.1 1.8 0.8 2.8 -0.5 1.7
2007 I 3.6 1.2 -2.3 10.3 6.4 6.4
II 3.8 4.9 1.0 -0.4 -4.8 -4.1
III 4.5 4.3 -0.2 0.7 -2.0 -3.6
IV 4.2 -0.4 -4.4 r7.4 r2.3 r3.1
ANNUAL 3.4 1.6 -1.7 r5.6 r2.7 r2.1
2008 I r3.6 r-1.2 r-4.7 r7.9 r3.5 r4.2
--------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2006 I 1.5 2.4 0.9 3.8 0.0 2.2
II 0.4 2.1 1.7 1.5 -2.4 1.1
III 0.9 2.3 1.4 0.7 -2.6 -0.2
IV 1.5 0.6 -0.9 5.1 3.1 3.6
ANNUAL 1.1 1.8 0.8 2.8 -0.5 1.7
2007 I 2.6 0.4 -2.1 5.4 2.9 2.8
II 3.5 1.5 -1.9 6.5 3.7 2.9
III 3.5 2.1 -1.3 6.0 3.6 2.4
IV 4.0 2.5 -1.5 r4.4 r0.4 r0.4
ANNUAL 3.4 1.6 -1.7 r5.6 r2.7 r2.1
2008 I r4.0 r1.9 r-2.1 r3.8 r-0.3 r-0.2
--------------------------------------------------------------------------------------------------
See footnotes following Table 6. June 4, 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
2006 I 198.8 179.6 90.3 168.1 120.7 84.6
II 198.9 180.5 90.7 166.1 118.2 83.5
III 201.7 181.1 89.8 167.3 117.9 82.9
IV 202.4 180.1 89.0 173.6 122.8 85.8
ANNUAL 200.4 180.3 90.0 168.7 119.8 84.2
2007 I 204.4 180.3 88.2 177.6 124.5 86.9
II 207.9 183.9 88.4 177.5 123.0 85.4
III 210.9 186.9 88.6 177.5 122.2 84.2
IV r214.3 r187.0 87.3 r180.9 r123.0 r84.4
ANNUAL r209.4 r184.5 88.1 r178.4 r123.2 r85.2
2008 I r215.7 r186.6 r86.5 r184.2 r124.0 r85.4
--------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2006 I -1.8 0.4 2.3 11.6 9.6 13.7
II 0.3 2.1 1.8 -4.7 -8.0 -5.0
III 5.7 1.2 -4.3 2.9 -1.1 -2.7
IV 1.4 -2.1 -3.4 16.0 17.8 14.5
ANNUAL 2.2 3.3 1.1 3.4 0.1 1.2
2007 I 3.9 0.4 -3.4 9.6 5.7 5.4
II 7.1 8.2 1.0 -0.3 -4.7 -6.9
III 6.0 6.8 0.8 0.1 -2.6 -5.6
IV 6.6 0.3 -6.0 r7.8 r2.7 r1.1
ANNUAL 4.5 2.3 -2.0 r5.7 r2.8 r1.2
2008 I r2.6 r-0.9 r-3.4 r7.5 r3.1 r4.8
--------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2006 I 3.2 4.8 1.6 4.2 0.4 1.0
II 2.0 4.6 2.5 2.1 -1.8 0.1
III 2.2 3.6 1.4 1.1 -2.2 -1.1
IV 1.4 0.4 -1.0 6.2 4.1 4.7
ANNUAL 2.2 3.3 1.1 3.4 0.1 1.2
2007 I 2.8 0.4 -2.4 5.7 3.2 2.8
II 4.5 1.8 -2.5 6.9 4.1 2.3
III 4.6 3.2 -1.3 6.1 3.7 1.5
IV 5.9 3.9 -1.9 r4.2 r0.2 r-1.6
ANNUAL 4.5 2.3 -2.0 r5.7 r2.8 r1.2
2008 I 5.5 r3.5 r-1.9 r3.7 r-0.5 r-1.8
--------------------------------------------------------------------------------------------------
See footnotes following Table 6. June 4, 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
2006 I 148.0 115.0 77.7 178.3 128.0 120.4
II 148.4 114.8 77.3 176.4 125.6 118.8
III 149.0 115.4 77.4 177.6 125.1 119.2
IV 150.3 115.1 76.6 181.9 128.7 121.1
ANNUAL 148.9 115.1 77.2 178.6 126.8 119.9
2007 I 151.2 115.6 76.5 187.1 131.2 123.7
II 151.4 116.0 76.6 186.9 129.6 123.5
III 152.7 116.4 76.3 187.8 129.3 123.0
IV r152.9 r116.1 75.9 r191.0 r129.9 r124.9
ANNUAL r152.0 r116.0 76.3 r188.2 r130.0 r123.8
2008 I r155.0 r115.7 r74.6 r194.9 r131.2 r125.7
--------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2006 I 1.0 3.6 2.6 4.4 2.5 3.4
II 1.1 -0.9 -1.9 -4.2 -7.5 -5.2
III 1.5 2.2 0.6 2.7 -1.3 1.1
IV 3.5 -1.1 -4.4 10.2 11.9 6.5
ANNUAL 0.2 0.3 0.1 1.5 -1.7 1.3
2007 I 2.5 2.0 -0.5 11.9 8.0 9.2
II 0.4 1.3 0.9 -0.4 -4.8 -0.8
III 3.5 1.6 -1.9 1.7 -1.0 -1.7
IV r0.6 r-1.1 -1.7 r7.1 r2.0 r6.4
ANNUAL 2.1 0.9 -1.2 r5.4 r2.5 r3.3
2008 I r5.7 r-1.6 r-6.9 r8.5 r4.0 r2.6
--------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2006 I 0.2 -0.1 -0.3 2.8 -0.9 2.7
II -0.7 -0.6 0.1 0.1 -3.7 0.8
III -0.4 1.0 1.4 0.0 -3.2 0.4
IV 1.8 0.9 -0.8 3.1 1.1 1.4
ANNUAL 0.2 0.3 0.1 1.5 -1.7 1.3
2007 I 2.1 0.5 -1.6 4.9 2.5 2.7
II 2.0 1.1 -0.9 6.0 3.2 3.9
III 2.5 0.9 -1.5 5.7 3.3 3.2
IV 1.7 0.9 -0.8 r5.0 r0.9 r3.2
ANNUAL 2.1 0.9 -1.2 r5.4 r2.5 r3.3
2008 I r2.5 r0.0 r-2.4 r4.2 r0.0 r1.6
--------------------------------------------------------------------------------------------------
See footnotes following Table 6. June 4, 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
2006 I 142.8 171.9 120.4 163.8 117.6 114.8 112.3 114.1 164.0 118.5
II 141.9 171.5 120.9 163.9 116.7 115.5 114.2 115.2 164.8 119.6
III 142.7 173.4 121.5 164.6 116.0 115.3 114.0 114.9 172.8 120.1
IV 143.0 174.2 121.8 169.3 119.8 118.4 114.7 117.4 150.4 120.3
ANNUAL 142.6 172.8 121.1 165.4 117.5 116.0 113.8 115.4 162.9 119.7
2007 I 143.5 174.6 121.7 171.4 120.2 119.5 114.9 118.2 154.7 121.5
II 144.2 175.9 121.9 172.4 119.5 119.5 115.0 118.3 158.5 121.9
III 145.3 177.5 122.2 173.6 119.5 119.5 114.7 118.2 154.3 121.4
IV r146.1 r178.5 122.2 r176.1 r119.8 r120.5 r115.1 r119.0 r146.8 121.5
ANNUAL r144.8 r176.6 122.0 r173.4 r119.8 r119.8 r114.9 r118.5 r153.5 121.6
2008 I 147.8 179.9 121.7 178.6 120.2 120.9 115.0 119.3 146.2 121.7
----------------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2006 I 2.0 4.5 2.4 5.1 3.2 3.0 -0.1 2.2 13.7 3.5
II -2.5 -0.8 1.7 0.2 -3.3 2.8 7.2 3.9 1.9 3.7
III 2.4 4.4 1.9 1.6 -2.4 -0.8 -0.9 -0.9 20.9 1.7
IV 0.9 1.9 1.1 12.0 13.8 11.1 2.7 8.8 -42.6 0.8
ANNUAL 0.7 3.0 2.2 3.5 0.2 2.8 1.4 2.4 5.5 2.8
2007 I 1.2 0.9 -0.3 5.1 1.4 3.8 0.5 2.9 11.8 3.9
II 2.1 2.9 0.8 2.3 -2.3 0.2 0.5 0.3 10.4 1.4
III 2.9 3.7 0.7 2.8 0.1 -0.1 -1.2 -0.4 -10.2 -1.6
IV r2.4 r2.4 0.0 r5.9 r0.8 r3.4 r1.4 r2.9 r-18.2 0.3
ANNUAL r1.5 r2.2 0.7 r4.8 r1.9 3.2 r1.0 2.6 r-5.8 1.6
2008 I 4.6 3.2 -1.4 5.9 1.5 1.2 -0.4 0.8 -1.5 0.5
----------------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2006 I 1.3 4.0 2.6 3.7 0.0 2.4 1.1 2.0 8.4 2.8
II 0.0 2.3 2.3 3.4 -0.5 3.5 2.9 3.3 2.5 3.2
III 1.0 3.3 2.3 2.3 -1.0 1.3 -0.4 0.9 17.8 2.8
IV 0.7 2.5 1.8 4.6 2.6 3.9 2.2 3.4 -5.3 2.4
ANNUAL 0.7 3.0 2.2 3.5 0.2 2.8 1.4 2.4 5.5 2.8
2007 I 0.5 1.6 1.1 4.6 2.2 4.1 2.3 3.6 -5.7 2.5
II 1.6 2.5 0.9 5.2 2.4 3.5 0.7 2.7 -3.8 1.9
III 1.8 2.3 0.6 5.5 3.1 3.7 0.6 2.8 -10.7 1.1
IV r2.2 r2.5 0.3 r4.0 r0.0 r1.8 r0.3 1.4 r-2.4 1.0
ANNUAL r1.5 r2.2 0.7 r4.8 r1.9 3.2 r1.0 2.6 r-5.8 1.6
2008 I 3.0 3.0 0.0 4.2 0.0 1.1 0.1 0.9 -5.5 0.1
----------------------------------------------------------------------------------------------------------
See footnotes following Table 6. June 4, 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 fourth 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 1978-2007 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
