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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.