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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 20-1139
8:30 a.m. (EDT) Thursday, June 4, 2020

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 2020, Revised

Nonfarm business sector labor productivity decreased 0.9 percent in the first quarter of 2020, the U.S. 
Bureau of Labor Statistics reported today, as output decreased 6.5 percent and hours worked decreased 
5.6 percent. (All quarterly percent changes in this release are seasonally adjusted annual rates.) From the 
first quarter of 2019 to the first quarter of 2020, productivity increased 0.7 percent, reflecting no change 
in output and a 0.7-percent decrease in hours worked. (See table A1.) 

Unit labor costs in the nonfarm business sector increased 5.1 percent in the first quarter of 2020, as 
hourly compensation increased 4.2 percent and productivity decreased 0.9 percent. Unit labor costs 
increased 1.9 percent over the last four quarters. (See table 2.) 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 output per hour tend to reduce them.

------------------------------------------------------------------------------------------------------------
                    Coronavirus (COVID-19) impact on First Quarter 2020 Productivity Data

BLS quarterly estimates of labor productivity combine output data with hours worked data based 
primarily on BLS Current Employment Statistics (CES) survey and supplemented with data from the 
Current Population Survey (CPS). The March reference period for these surveys largely predated many 
of the COVID-19-related job losses that occurred in the latter part of March. To capture these job losses, 
adjustments were made to employment and hours using supplementary data. Hours worked and related 
measures--including labor productivity--for the first quarter of 2020 reflect these adjustments. For more 
information see www.bls.gov/covid19/productivity-and-costs-first-quarter-2020-revised-adjusting-
march-2020-employment-and-hours.htm.
------------------------------------------------------------------------------------------------------------

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 0.9-
percent decline in nonfarm business sector labor productivity in the first quarter of 2020 was only the 
second quarterly decline since the fourth quarter of 2015, when output per hour decreased 2.9 percent. 
The 6.5-percent first-quarter 2020 decrease in output was the largest since the first quarter of 2009, 
when output also fell 6.5 percent, and the 5.6-percent decline in hours worked was the largest since the 
second quarter of 2009 (-8.7 percent). 

Manufacturing sector labor productivity increased 0.3 percent in the first quarter of 2020, as output 
decreased 6.3 percent and hours worked decreased 6.6 percent. Total manufacturing sector productivity 
declined 0.8 percent over the last four quarters, as output decreased 2.2 percent and hours worked 
decreased 1.4 percent. (See tables A1 and 3.) Productivity decreased 3.5 percent in the durable 
manufacturing sector in the first quarter of 2020, reflecting a 10.2-percent decrease in output and a 6.9-
percent decrease in hours worked. Productivity increased 4.3 percent in the nondurable manufacturing 
sector, as output decreased 2.0 percent and hours worked decreased 6.1 percent. (See tables A1, 4, and 
5.) Unit labor costs in the total manufacturing sector increased 6.9 percent in the first quarter of 2020, 
and increased 4.4 percent from the same quarter a year ago. (See table A1.)

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 2020 measures were announced today for the nonfinancial corporate sector. 
Productivity decreased 1.3 percent in the first quarter of 2020 as output decreased 5.0 percent and hours 
worked decreased 3.7 percent. Productivity increased 1.1 percent over the last four quarters. Unit profits 
of nonfinancial corporations decreased at a 43.3 percent annual rate in the first quarter of 2020 and 
decreased 8.4 percent over the last four quarters. (See table 6.) The 43.3-percent drop in unit profits in 
the first quarter of 2020 was the largest decline since the fourth quarter of 2001 (-46.7 percent). 

Revised measures        

Measures released today are based on more recent source data than were available for the 
preliminary report. Total hours worked are produced by combining data on employment and 
average weekly hours. For employees these data are primarily based on data from the Current 
Employment Statistics (CES) survey. The survey reference period for March predated many of the 
COVID-19-related job losses that occurred in the latter part of the month. In order to capture these 
job losses, adjustments were made to March employment based on DOL Employment and 
Training Administration weekly reports of the number of initial claims for unemployment 
insurance (UI) benefits. This approach was reflected in the preliminary estimates of first-quarter 
2020 labor productivity. Revised measures for the first quarter use this same basic methodology to 
estimate employment, but also use April data from the CES to better account for job losses that 
occurred in late March, as well as to adjust average weekly hours of employees. Hours worked by 
self-employed and unpaid family workers are based on data from the Current Population Survey 
(CPS). These hours worked data for March were adjusted using April CPS data and UI claims data. 
Hours worked and related measures--including labor productivity--for all sectors for the first 
quarter of 2020 reflect these adjustments.  

Table B1 presents previous and revised productivity and related measures for the business, 
nonfarm business, and manufacturing sectors for the first quarter of 2020. 

In the first quarter of 2020, nonfarm business productivity decreased 0.9 percent, rather than 2.5 
percent as reported May 7, due to a 0.3-percentage point downward revision to output and a 1.8-
percentage point downward revision to hours worked. Unit labor costs increased 5.1 percent rather 
than increasing 4.8 percent as previously reported, reflecting a 2.0-percentage point upward revision to 
hourly compensation that was largely offset by a 1.6-percentage point upward revision to productivity. 
In the manufacturing sector, productivity was revised up from a decrease of 3.3 percent to an increase of 
0.3 percent, due to a 0.8-percentage point upward revision to output and a 2.7-percentage point 
downward revision to hours worked. Unit labor costs increased 6.9 percent rather than the preliminary 
estimate of 3.6 percent, reflecting the upward revision to productivity and a 7.1-percentage point upward 
revision to hourly compensation.  

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 2019. 

In the fourth quarter of 2019, labor productivity in the nonfarm business sector increased at the same 
1.2-percent rate reported May 7. Hourly compensation was revised up from the previously reported 
increase of 2.1 percent to a 3.4-percent increase. As a result, unit labor costs increased 2.2 percent in the 
fourth quarter of 2019, rather than increasing 0.9 percent. Total manufacturing sector productivity 
decreased 0.8 percent in the fourth quarter of 2019, a slightly larger decrease than previously reported. 
Hourly compensation was revised up 2.8 percentage points to a 5.5-percent increase; this led to an 
upward revision to unit labor costs, which increased 6.3 percent rather than increasing 3.5 percent.  

In the nonfinancial corporate sector, productivity rose 3.7 percent in the fourth quarter of 2019 rather 
than increasing 2.8 percent as previously reported, due solely to an upward revision to output. Annual 
average productivity in the nonfinancial corporate sector increased 1.9 percent in 2019, 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 2020 is scheduled to be 
released on Friday, August 14, 2020 at 8:30 a.m. (EDT).





=========================================================================================================================
Table A1. Labor productivity growth and related measures – revised first-quarter 2020
(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          -0.9         -6.5      -5.6          4.2             2.9       5.1
                         A year ago                 0.7          0.0      -0.7          2.6             0.4       1.9
Business                 Previous quarter          -0.7         -6.3      -5.6          3.9             2.7       4.7
                         A year ago                 0.7          0.1      -0.6          2.5             0.4       1.8
Manufacturing            Previous quarter           0.3         -6.3      -6.6          7.3             6.0       6.9
                         A year ago                -0.8         -2.2      -1.4          3.5             1.4       4.4
Durable manufacturing    Previous quarter          -3.5        -10.2      -6.9          7.5             6.2      11.4 
                         A year ago                -1.2         -3.2      -2.0          4.0             1.8       5.3
Nondurable manufacturing Previous quarter           4.3         -2.0      -6.1          6.8             5.5       2.4
                         A year ago                -0.7         -1.2      -0.4          2.9             0.7       3.6
=========================================================================================================================


=========================================================================================================================
Table A2. Labor productivity growth and related measures – revised first-quarter 2020
(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 corporate  Previous quarter           -1.3         -5.0      -3.7          4.2             3.0       5.6
                        A year ago                  1.1          0.6      -0.5          2.6             0.5       1.5
=========================================================================================================================


=========================================================================================================================
Table B1. Labor productivity growth and related measures – revised and previously published first-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                   -0.9         -6.5      -5.6          4.2             2.9       5.1
                         Previously published      -2.5         -6.2      -3.8          2.2             0.9       4.8
Business                 Revised                   -0.7         -6.3      -5.6          3.9             2.7       4.7
                         Previously published      -2.3         -6.0      -3.8          1.9             0.7       4.4
Manufacturing            Revised                    0.3         -6.3      -6.6          7.3             6.0       6.9
                         Previously published      -3.3         -7.1      -3.9          0.2            -1.0       3.6
Durable manufacturing    Revised                   -3.5        -10.2      -6.9          7.5             6.2      11.4
                         Previously published      -8.3        -11.9      -3.9         -2.2            -3.4       6.6
Nondurable manufacturing Revised                    4.3         -2.0      -6.1          6.8             5.5       2.4
                         Previously published       2.1         -1.8      -3.8          5.0             3.7       2.8
=========================================================================================================================


=========================================================================================================================
Table B2. Labor productivity growth and related measures – revised and previously published fourth-quarter 2019
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                    1.2          2.4       1.2          3.4              1.0       2.2
                         Previously published       1.2          2.4       1.2          2.1             -0.3       0.9
Business                 Revised                    1.0          2.4       1.4          3.2              0.8       2.2
                         Previously published       1.0          2.4       1.4          1.9             -0.5       0.9
Manufacturing            Revised                   -0.8         -0.2       0.5          5.5              3.0       6.3
                         Previously published      -0.7         -0.2       0.5          2.7              0.3       3.5
Durable manufacturing    Revised                   -1.2         -1.6      -0.4          8.4              5.9       9.7
                         Previously published      -1.0         -1.4      -0.4          4.1              1.6       5.1
Nondurable manufacturing Revised                   -0.9          1.2       2.1          0.2             -2.1       1.1
                         Previously published      -1.0          1.1       2.1          0.4             -2.0       1.3
Nonfinancial corporate   Revised                    3.7          4.9       1.2          3.8              1.4       0.1
                         Previously published       2.8          4.1       1.2          2.4              0.0      -0.4
=========================================================================================================================



					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 (https://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)

2020 I        -0.7 r      -6.3 r     -5.6 r      3.9 r      2.7 r      4.7 r     -3.8 r      0.9 r

2019 ANNUAL    2.0         2.7        0.7        3.8 r      2.0 r      1.8 r      0.8 r      1.4  

2019 IV        1.0         2.4        1.4        3.2 r      0.8 r      2.2 r     -0.6 r      1.0  
     III      -0.4         2.4        2.7        0.0       -1.8        0.3        2.5        1.2  
     II        3.0         2.0       -0.9        3.0        0.0        0.1        7.0        3.0  
     I         4.0         3.9        0.0        9.9        8.9        5.7       -7.3       -0.1  

2018 ANNUAL    1.5         3.4        1.9        3.4        0.9        1.9        2.8        2.3  

2018 IV        0.4         1.2        0.8        1.0       -0.2        0.6        2.1        1.2  
     III       1.3         3.4        2.1        3.1        0.9        1.8        1.1        1.5  
     II        2.7         4.0        1.3        1.0       -1.2       -1.6       10.8        3.6  
     I         1.3         2.9        1.6        4.7        1.4        3.4        0.1        2.0  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2020 I         0.7 r       0.1       -0.6 r      2.5 r      0.4 r      1.8 r      1.2 r      1.5 r

2019 ANNUAL    2.0         2.7        0.7        3.8 r      2.0 r      1.8 r      0.8 r      1.4  

2019 IV        1.9         2.7        0.8        4.0 r      1.9 r      2.0 r      0.3 r      1.3  
     III       1.7         2.4        0.6        3.4        1.6        1.6        0.9        1.3  
     II        2.1         2.7        0.5        4.2        2.3        2.0        0.6        1.4  
     I         2.1         3.1        1.0        3.7        2.0        1.6        1.5        1.5  

2018 ANNUAL    1.5         3.4        1.9        3.4        0.9        1.9        2.8        2.3  

2018 IV        1.4         2.9        1.4        2.4        0.2        1.0        3.4        2.1  
     III       1.3         3.6        2.2        3.3        0.6        1.9        3.1        2.4  
     II        1.8         3.7        1.9        3.7        1.0        1.9        3.5        2.6  
     I         1.3         3.4        2.1        4.0        1.8        2.7        1.0        2.0  
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2020 I       108.3 r     120.6 r    111.3 r    122.4 r    108.5 r    113.0 r    108.5 r    111.0 r

2019 ANNUAL  108.2       121.6      112.3      120.3 r    107.8 r    111.2 r    109.0 r    110.2  

2019 IV      108.5       122.6      113.0      121.2 r    107.7 r    111.7 r    109.6 r    110.8  
     III     108.3       121.9      112.6      120.3      107.5      111.1      109.8      110.5  
     II      108.4       121.2      111.8      120.3      108.0      111.0      109.1      110.2  
     I       107.6       120.6      112.1      119.4      108.0      111.0      107.3      109.4  

2018 ANNUAL  106.1       118.3      111.5      115.9      105.7      109.2      108.1      108.7  

2018 IV      106.5       119.4      112.1      116.6      105.7      109.4      109.3      109.4  
     III     106.4       119.0      111.8      116.3      105.8      109.3      108.8      109.1  
     II      106.1       118.0      111.3      115.4      105.6      108.8      108.5      108.7  
     I       105.4       116.9      110.9      115.1      105.9      109.2      105.7      107.7  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                       June 4, 2020
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)

2020 I        -0.9 r      -6.5 r     -5.6 r      4.2 r      2.9 r      5.1 r     -4.2 r      1.0 r

2019 ANNUAL    1.9         2.7        0.7        3.8 r      1.9        1.8 r      0.9 r      1.4  

2019 IV        1.2         2.4        1.2        3.4 r      1.0 r      2.2 r     -0.8 r      0.9  
     III      -0.3         2.3        2.6       -0.1       -1.8        0.2        2.4        1.2  
     II        2.7         1.9       -0.7        2.7       -0.3        0.1        7.1        3.1  
     I         3.9         3.9        0.1        9.8        8.8        5.7       -7.1        0.0  

2018 ANNUAL    1.4         3.5        2.0        3.3        0.8        1.8        3.0        2.3  

2018 IV        0.6         1.2        0.7        1.2        0.0        0.7        1.8        1.2  
     III       1.7         3.5        1.8        3.4        1.2        1.6        1.9        1.7  
     II        2.1         4.0        1.8        0.5       -1.6       -1.5       10.8        3.6  
     I         0.9         2.9        2.0        4.2        0.9        3.2        0.3        2.0  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2020 I         0.7 r       0.0 r     -0.7 r      2.6 r      0.4 r      1.9 r      1.0 r      1.5 r

2019 ANNUAL    1.9         2.7        0.7        3.8 r      1.9        1.8 r      0.9 r      1.4  

2019 IV        1.8         2.7        0.8        3.9 r      1.8 r      2.0 r      0.3 r      1.3  
     III       1.7         2.4        0.7        3.4        1.6        1.6        0.9        1.3  
     II        2.2         2.6        0.4        4.2        2.4        2.0        0.8        1.5  
     I         2.0         3.2        1.1        3.7        2.0        1.6        1.7        1.6  

2018 ANNUAL    1.4         3.5        2.0        3.3        0.8        1.8        3.0        2.3  

2018 IV        1.3         2.9        1.6        2.3        0.1        1.0        3.6        2.1  
     III       1.4         3.6        2.2        3.3        0.6        1.9        3.4        2.5  
     II        1.7         3.8        2.1        3.5        0.8        1.8        3.7        2.6  
     I         1.3         3.5        2.2        3.9        1.7        2.6        1.2        2.0  
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2020 I       108.0 r     120.3 r    111.4 r    122.5 r    108.6 r    113.4 r    109.5 r    111.7 r

2019 ANNUAL  107.9       121.3      112.4      120.3 r    107.9 r    111.5 r    110.1 r    110.9  

2019 IV      108.3       122.4      113.0      121.3 r    107.8 r    112.0 r    110.7 r    111.4  
     III     108.0       121.6      112.7      120.3      107.5      111.4      110.9      111.2  
     II      108.0       120.9      111.9      120.3      108.0      111.3      110.3      110.9  
     I       107.3       120.4      112.1      119.5      108.1      111.3      108.4      110.0  

2018 ANNUAL  105.8       118.1      111.6      115.9      105.8      109.5      109.1      109.3  

2018 IV      106.3       119.2      112.1      116.7      105.8      109.8      110.4      110.0  
     III     106.2       118.8      111.9      116.3      105.9      109.6      109.9      109.7  
     II      105.7       117.8      111.4      115.4      105.5      109.1      109.4      109.3  
     I       105.2       116.7      110.9      115.2      106.0      109.6      106.6      108.3  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                       June 4, 2020
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)

2020 I             0.3 r         -6.3 r         -6.6 r          7.3 r          6.0 r          6.9 r

2019 ANNUAL        0.1            0.0           -0.1            3.4 r          1.5 r          3.3 r

2019 IV           -0.8 r         -0.2            0.5            5.5 r          3.0 r          6.3 r
     III          -0.5            0.9            1.4           -1.2           -3.0           -0.7  
     II           -2.3           -3.1           -0.9            2.7           -0.3            5.2  
     I             1.3           -1.7           -3.1            8.3            7.4            6.9  

2018 ANNUAL        0.4            2.3            1.9            2.2           -0.3            1.8  

2018 IV            0.9            1.6            0.6            3.5            2.2            2.5  
     III           0.3            4.0            3.7            2.3            0.2            2.0  
     II            1.4            2.7            1.3           -4.7           -6.7           -6.0  
     I             0.0            1.9            1.9            4.7            1.3            4.7  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2020 I            -0.8 r         -2.2 r         -1.4 r          3.5 r          1.4 r          4.4 r

2019 ANNUAL        0.1            0.0           -0.1            3.4 r          1.5 r          3.3 r

2019 IV           -0.6           -1.1           -0.5            3.8 r          1.7 r          4.4 r
     III          -0.1           -0.6           -0.5            3.3            1.5            3.4  
     II            0.1            0.1            0.1            4.2            2.3            4.1  
     I             1.0            1.6            0.6            2.3            0.6            1.3  

2018 ANNUAL        0.4            2.3            1.9            2.2           -0.3            1.8  

2018 IV            0.6            2.5            1.9            1.4           -0.8            0.7  
     III           1.2            3.4            2.2            1.8           -0.8            0.6  
     II           -0.3            1.7            2.0            1.7           -1.0            1.9  
     I            -0.1            1.4            1.6            3.9            1.6            4.0  
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2020 I            98.4 r        103.1 r        104.8 r        119.7 r        106.1 r        121.7 r

2019 ANNUAL       98.7          104.9 r        106.4          116.4 r        104.4 r        118.0 r

2019 IV           98.3 r        104.8 r        106.6          117.6 r        104.6 r        119.6 r
     III          98.5          104.9          106.5          116.1          103.8          117.8  
     II           98.6          104.6          106.1          116.4          104.6          118.0  
     I            99.2          105.5          106.3          115.6          104.6          116.6  

2018 ANNUAL       98.6          104.9          106.4          112.6          102.8          114.3  

2018 IV           98.9          105.9          107.1          113.3          102.8          114.6  
     III          98.6          105.5          107.0          112.4          102.2          113.9  
     II           98.6          104.5          106.0          111.7          102.2          113.4  
     I            98.2          103.8          105.7          113.1          104.0          115.1  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                       June 4, 2020
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)

2020 I            -3.5 r        -10.2 r         -6.9 r          7.5 r          6.2 r         11.4 r

2019 ANNUAL        0.5            0.7            0.2            3.3 r          1.5 r          2.8 r

2019 IV           -1.2 r         -1.6 r         -0.4            8.4 r          5.9 r          9.7 r
     III           0.5            1.5            1.1           -2.1           -3.9           -2.6  
     II           -0.7           -2.3           -1.6            2.4           -0.7            3.1  
     I             0.3           -2.7           -3.0            8.9            7.9            8.5  

2018 ANNUAL        0.8            3.0            2.2            2.6            0.2            1.9  

2018 IV            1.6            4.7            3.1            2.6            1.4            1.0  
     III           2.2            5.8            3.6            2.0           -0.1           -0.1  
     II            0.2            2.2            2.0           -4.4           -6.4           -4.6  
     I             0.8            3.9            3.1            4.6            1.3            3.8  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2020 I            -1.2 r         -3.2 r         -2.0 r          4.0 r          1.8 r          5.3 r

2019 ANNUAL        0.5            0.7            0.2            3.3 r          1.5 r          2.8 r

2019 IV           -0.3 r         -1.3 r         -1.0            4.3 r          2.2 r          4.6 r
     III           0.4            0.3           -0.1            2.9            1.1            2.4  
     II            0.8            1.3            0.5            3.9            2.1            3.1  
     I             1.1            2.5            1.4            2.2            0.6            1.1  

2018 ANNUAL        0.8            3.0            2.2            2.6            0.2            1.9  

2018 IV            1.2            4.2            2.9            1.2           -1.0            0.0  
     III           1.6            4.1            2.5            2.3           -0.3            0.7  
     II           -0.2            2.0            2.2            2.2           -0.5            2.4  
     I             0.5            1.7            1.2            5.0            2.7            4.5  
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2020 I            98.9 r        103.5 r        104.7 r        121.2 r        107.4 r        122.5 r

2019 ANNUAL      100.0 r        106.6 r        106.6          117.3 r        105.2 r        117.3 r

2019 IV           99.8 r        106.3 r        106.6          119.0 r        105.8 r        119.2 r
     III         100.1          106.8          106.7          116.6          104.3          116.5  
     II          100.0          106.4          106.4          117.2          105.3          117.3  
     I           100.1          107.0          106.8          116.6          105.5          116.4  

2018 ANNUAL       99.5          105.9          106.4          113.6          103.7          114.2  

2018 IV          100.1          107.7          107.6          114.1          103.5          114.0  
     III          99.7          106.5          106.8          113.4          103.1          113.7  
     II           99.1          105.0          105.9          112.8          103.2          113.8  
     I            99.1          104.4          105.4          114.1          104.9          115.1  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                       June 4, 2020
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)

2020 I             4.3 r         -2.0 r         -6.1 r          6.8 r          5.5 r          2.4 r

2019 ANNUAL       -0.2           -0.7           -0.5            3.4            1.6            3.7  

2019 IV           -0.9 r          1.2 r          2.1            0.2 r         -2.1 r          1.1 r
     III          -1.7            0.2            2.0            0.8           -1.0            2.6  
     II           -4.4           -4.0            0.5            3.8            0.7            8.6  
     I             2.5           -0.7           -3.2            7.3            6.3            4.6  

2018 ANNUAL        0.1            1.5            1.4            1.2           -1.2            1.1  

2018 IV            1.7           -1.6           -3.3            4.4            3.1            2.6  
     III          -1.6            2.2            3.9            3.0            0.9            4.7  
     II            3.0            3.1            0.1           -5.5           -7.6           -8.3  
     I            -0.1           -0.1            0.0            4.4            1.1            4.5  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2020 I            -0.7 r         -1.2 r         -0.4 r          2.9 r          0.7 r          3.6 r

2019 ANNUAL       -0.2           -0.7           -0.5            3.4            1.6            3.7  

2019 IV           -1.2           -0.8 r          0.3            3.0            0.9 r          4.2 r
     III          -0.5           -1.5           -1.0            4.0            2.2            4.6  
     II           -0.5           -1.1           -0.6            4.6            2.7            5.1  
     I             1.4            0.7           -0.7            2.2            0.5            0.8  

2018 ANNUAL        0.1            1.5            1.4            1.2           -1.2            1.1  

2018 IV            0.7            0.9            0.1            1.5           -0.7            0.7  
     III           1.0            2.6            1.6            0.8           -1.8           -0.2  
     II           -0.2            1.3            1.6            0.7           -2.0            0.9  
     I            -1.1            1.1            2.3            1.9           -0.4            3.0  
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2020 I            99.0 r        103.9 r        105.0 r        116.9 r        103.6 r        118.2 r

2019 ANNUAL       98.6 r        104.4 r        106.0          114.6 r        102.7 r        116.3 r

2019 IV           97.9 r        104.4 r        106.7          115.0 r        102.2 r        117.5 r
     III          98.1          104.1          106.1          115.0          102.8          117.1  
     II           98.6          104.1          105.6          114.7          103.1          116.4  
     I            99.7          105.1          105.5          113.7          102.9          114.0  

2018 ANNUAL       98.8          105.2          106.5          110.8          101.1          112.2  

2018 IV           99.1          105.3          106.3          111.7          101.3          112.7  
     III          98.7          105.8          107.2          110.5          100.5          112.0  
     II           99.1          105.2          106.2          109.7          100.3          110.7  
     I            98.3          104.4          106.2          111.3          102.3          113.2  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                       June 4, 2020
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)

2020 I        -1.3      -5.0     -3.7       4.2       3.0       5.6      9.1      6.7    -43.3     -0.1  

2019 ANNUAL    1.9 r     2.8      0.9       3.5 r     1.6 r     1.5      1.6      1.6 r   -5.8 r    0.7  

2019 IV        3.7 r     4.9 r    1.2       3.8 r     1.4 r     0.1 r   -4.0 r   -1.2 r   14.8 r    0.4  
     III       1.0       1.7      0.7       0.1      -1.7      -0.8      5.7      1.2     -3.6      0.7  
     II        1.0       1.1      0.1       2.5      -0.5       1.4      1.2      1.3     12.0      2.4  
     I         2.1       3.6      1.5       9.6       8.6       7.3      1.1      5.3    -33.7     -0.1  

2018 ANNUAL    0.0       1.9      1.9       3.4       1.0       3.4      3.0      3.3     -1.1      2.8  

2018 IV        1.9       2.4      0.5       0.9      -0.3      -1.0      3.5      0.5      0.0      0.4  
     III       5.2       6.3      1.1       2.0      -0.1      -3.0     -2.5     -2.9     12.7     -1.2  
     II       -2.8      -0.4      2.5      -0.3      -2.5       2.5      5.3      3.4      4.8      3.6  
     I         1.5       3.3      1.8       9.8       6.3       8.2      1.6      6.0      0.2      5.3  
---------------------------------------------------------------------------------------------------------
                       Percent change from corresponding quarter of previous year

2020 I         1.1       0.6     -0.5       2.6       0.5       1.5      2.9      2.0     -8.4      0.9  

2019 ANNUAL    1.9 r     2.8      0.9       3.5 r     1.6 r     1.5      1.6      1.6 r   -5.8 r    0.7  

2019 IV        1.9 r     2.8 r    0.9       3.9 r     1.9 r     2.0 r    0.9 r    1.6     -4.8 r    0.9  
     III       1.5       2.2      0.7       3.2       1.4       1.7      2.9      2.1     -8.0      0.9  
     II        2.6       3.4      0.8       3.7       1.8       1.1      0.8      1.0     -4.4      0.4  
     I         1.6       3.0      1.4       3.0       1.3       1.4      1.8      1.5     -5.9      0.7  

2018 ANNUAL    0.0       1.9      1.9       3.4       1.0       3.4      3.0      3.3     -1.1      2.8  

2018 IV        1.4       2.9      1.5       3.0       0.8       1.6      1.9      1.7      4.3      2.0  
     III       0.7       2.7      2.0       3.5       0.8       2.7      2.1      2.5      2.2      2.5  
     II       -1.5       0.6      2.1       3.5       0.8       5.1      4.4      4.9     -5.0      3.6  
     I        -0.6       1.5      2.2       3.7       1.5       4.4      3.5      4.1     -5.4      2.9  
---------------------------------------------------------------------------------------------------------
                                            Indexes 2012=100

2020 I       103.6     117.1    113.0     122.0     108.1     117.7    114.2    116.5     75.1    110.6  

2019 ANNUAL  103.1 r   117.3 r  113.7     119.7 r   107.3 r   116.1 r  111.7 r  114.6 r   84.2 r  110.3 r

2019 IV      104.0 r   118.6 r  114.1     120.7 r   107.3 r   116.1 r  111.7 r  114.6 r   86.5 r  110.6  
     III     103.1     117.2    113.7     119.6     106.9     116.1    112.9    115.0     83.6    110.5  
     II      102.8     116.7    113.5     119.6     107.4     116.3    111.3    114.7     84.4    110.3  
     I       102.5     116.4    113.5     118.8     107.5     115.9    111.0    114.3     82.0    109.7  

2018 ANNUAL  101.2     114.0    112.7     115.7     105.6     114.3    110.0    112.9     89.3    109.5  

2018 IV      102.0     115.4    113.1     116.2     105.3     113.9    110.7    112.8     90.9    109.7  
     III     101.5     114.7    113.0     115.9     105.4     114.2    109.7    112.7     90.9    109.6  
     II      100.2     112.9    112.7     115.3     105.5     115.0    110.4    113.5     88.2    109.9  
     I       101.0     113.0    112.0     115.4     106.1     114.3    109.0    112.6     87.2    108.9  
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                             June 4, 2020
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.

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 -1.4 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 2019.

				      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 1978-2019 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 
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: June 04, 2020