Transmission of material in this release is embargoed until USDL 18-1315
8:30 a.m. (EDT) Wednesday, August 15, 2018
Technical information: (202) 691-5606 • Productivity@bls.gov • www.bls.gov/lpc
Media contact: (202) 691-5902 • PressOffice@bls.gov
PRODUCTIVITY AND COSTS
Second Quarter 2018, Preliminary
Nonfarm business sector labor productivity increased 2.9 percent during the second quarter of 2018,
the U.S. Bureau of Labor Statistics reported today, as output increased 4.8 percent and hours worked
increased 1.9 percent. (All quarterly percent changes in this release are seasonally adjusted annual rates.)
From the second quarter of 2017 to the second quarter of 2018, productivity increased 1.3 percent,
reflecting a 3.5-percent increase in output and a 2.2-percent increase in hours worked. (See tables A1
and 2.)
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.
Unit labor costs in the nonfarm business sector decreased 0.9 percent in the second quarter of 2018,
reflecting a 2.0-percent increase in hourly compensation and a 2.9-percent increase in productivity. Unit
labor costs increased 1.9 percent over the last four quarters. (See tables A1 and 2.)
===========================================================================================================
Historical Revisions to Productivity and Costs Data
Data in this release reflect the 2018 Comprehensive Update of the National Income and Product
Accounts (NIPA) released by the Bureau of Economic Analysis of the U.S. Department of Commerce
on July 27, 2018. See “Revised measures” section.
===========================================================================================================
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.
Manufacturing sector labor productivity increased 0.9 percent in the second quarter of 2018, as
output increased 1.9 percent and hours worked increased 1.0 percent. Productivity increased 0.9 percent
in the durable manufacturing sector, as output rose 2.4 percent and hours worked increased 1.4 percent.
In the non-durable goods manufacturing sector, a 1.1-percent increase in productivity reflected a 1.5-
percent increase in output and a 0.4-percent increase in hours worked. Over the last four quarters, total
manufacturing sector productivity decreased 0.2 percent, as output increased 1.8 percent and hours
worked increased 2.1 percent. Unit labor costs in manufacturing rose 0.6 percent in the second quarter
of 2018 and increased 2.7 percent from the same quarter a year ago. (See tables A1 and 3.)
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.
Revised first-quarter 2018 measures were announced today for the nonfinancial corporate sector.
Productivity increased 3.0 percent in the first quarter of 2018 and increased 2.5 percent over the last four
quarters. Unit profits of nonfinancial corporations increased at a 5.5-percent annual rate in the first
quarter of 2018 and increased 0.3 percent over the last four quarters. (See tables A2 and 6.)
Revised measures
Measures of output for the business, nonfarm business, and nonfinancial corporate sectors, and measures
of compensation for all sectors incorporate revised National Income and Product Accounts (NIPA) data
for first-quarter 1947 through first-quarter 2018 released on July 27 by the Bureau of Economic Analysis
(BEA), U.S. Department of Commerce. As a result, all measures incorporating output and compensation
were revised, including labor productivity and unit labor costs. The revisions affected both annual and
quarterly data, with the revisions to quarterly data being more substantial, due to the incorporation of
improved historical seasonal adjustment methodology by BEA. Measures of output for the
manufacturing sectors incorporate regular updates of source data for the first quarter of 2018 and the
fourth quarter of 2017. Hours and related measures were revised back to 2000 for the business and
nonfarm business sectors due to revised NIPA data on government enterprises employment and on the
proportion of sector compensation paid to employees of nonprofit institutions. Hours and related
measures were revised back to 2000 for the nonfinancial corporate sector due to the incorporation of
revised NIPA data on the proportion of sector compensation paid to employees of corporations. Indexes
of all measures show historical revisions because the base year was changed from 2009 to 2012;
resulting revisions to percent changes are small.
Table B1 presents revised and previous labor productivity and related measures for the nonfarm
business, business, and manufacturing sectors for the first quarter of 2018; table C1 presents annual data
for the nonfarm business, total manufacturing, and nonfinancial corporate sectors from 2015 to 2017.
Nonfarm business sector productivity increased 0.3 percent in the first quarter of 2018--similar to
the previously reported estimate (0.4 percent)--reflecting a 0.1-percentage point downward revision to
output. (See table B1.) An upward revision to first-quarter unit labor costs--from an increase of 2.9
percent to an increase of 3.4 percent--reflected a 0.4-percentage point upward revision to hourly
compensation and a 0.1-pecentage point downward revision to productivity. Real hourly compensation
increased 0.2 percent after revision, rather than decreasing 0.2 percent as previously published.
Historical revisions to labor productivity in the nonfarm business sector affected the full historical
period since 1947, with notable periods of upward revision in the latter 1990s and latter 2000s. The
average annual rate of productivity growth from 2007 to 2017--representing the current business cycle-
-was revised up 0.1 percentage point, to a rate of 1.3 percent. The productivity growth rate over the last
business cycle, from 2001 to 2007, was also revised up 0.1 percentage point, to a rate of 2.7 percent.
Earlier business cycle trends also remained largely unchanged. Unit labor costs revisions were also for
the full historical period since 1947, reflecting both revisions to labor productivity and hourly
compensation, and show notable downward revisions in the latter 2000s. There was also a large
upward revision in 2017, due to a large upward revision to hourly compensation in that year.
Annual average productivity growth in the nonfarm business sector in 2017 was revised down 0.2
percentage point to an increase of 1.1 percent. Unit labor costs increased 2.2 percent in the nonfarm
business sector in 2017, rather than increasing 0.4 percent, reflecting both a 1.7-percentage point
upward revision to hourly compensation and a 0.2-percentage point downward revision to productivity.
Real hourly compensation increased 1.2 percent in 2017, rather than decreasing 0.5 percent as
previously reported. (See table C1.)
Manufacturing sector productivity decreased 1.0 percent in the first quarter of 2018--a smaller
decline than previously reported. Productivity was revised up 0.9 percentage point, to an increase of 0.1
percent in the durable goods sector, and was revised down 0.5 percentage point, to a decrease of 1.4
percent in the nondurable goods sector. Unit labor costs increased 5.5 percent in the manufacturing
sector rather than increasing 5.2 percent as reported June 6. Unit labor costs were revised down 1.2
percentage points, to an increase of 5.5 percent in the durable goods sector, and were revised up 2.5
percentage points, to an increase of 3.4 percent in the nondurable goods sector. Total manufacturing
real hourly compensation increased 0.9 percent, as revised. (See table B1.)
Annual average manufacturing productivity grew 0.7 percent in 2017, unrevised from the previously
reported estimate. Productivity was also unrevised in the manufacturing sector in 2016 and 2015. Unit
labor costs were revised up to an increase of 2.6 percent in 2017, reflecting a 1.6-percentage point
upward revision to hourly compensation. After revision, manufacturing real hourly compensation
increased 1.1 percent in 2017 rather than decreasing 0.4 percent. (See tables C1, 3, 4, and 5.)
Nonfinancial corporate sector productivity growth was revised up in the first quarter of 2018, to an
increase of 3.0 percent, rather than the previously published increase of 1.9 percent; this revision was
due solely to a 1.1-percentage point upward revision to output; hours were unrevised. (See table A2.)
Annual average productivity in the nonfinancial corporate sector increased 1.6 percent in 2017, an
upward revision from the preliminary estimate of a 1.0-percent increase. (See tables C1 and 6.) Though
the rate over the current business cycle--from 2007 to 2017--increased at the same 1.0-percent rate as
was reported June 6, there were notable revisions in some of the years of this period, particularly three
consecutive 0.3-percentage point upward revisions, in 2011, 2012, and 2013, followed by a 0.9-
percentage point downward revision in 2014.
Complete annual and quarterly data series can be found on the Productivity and Costs home page:
www.bls.gov/lpc/#data.
______________
The revised Productivity and Costs news release for second-quarter 2018 is scheduled to be
released on Thursday, September 6, 2018 at 8:30 a.m. (EDT)
=========================================================================================================================
Table A1. Labor productivity growth and related measures - preliminary second-quarter 2018
(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 2.9 4.8 1.9 2.0 0.3 -0.9
A year ago 1.3 3.5 2.2 3.2 0.5 1.9
Business Previous quarter 3.6 5.0 1.3 2.4 0.8 -1.1
A year ago 1.4 3.4 2.0 3.4 0.7 1.9
Manufacturing Previous quarter 0.9 1.9 1.0 1.5 -0.1 0.6
A Year ago -0.2 1.8 2.1 2.5 -0.2 2.7
Durable
manufacturing Previous quarter 0.9 2.4 1.4 1.3 -0.3 0.4
A year ago 0.2 2.3 2.1 2.9 0.2 2.7
Nondurable
manufacturing Previous quarter 1.1 1.5 0.4 1.9 0.2 0.8
A year ago -0.6 1.3 2.0 1.7 -0.9 2.4
=========================================================================================================================
=========================================================================================================================
Table A2. Labor productivity growth and related measures - revised and previously published first-quarter 2018
(percent change from previous quarter at annual rate)
Labor Hours Hourly Real hourly Unit labor
Sector productivity Output worked compensation compensation costs
-------------------------------------------------------------------------------------------------------------------------
Nonfinancial Revised 3.0 5.3 2.2 4.4 0.9 1.4
corporate Previously published 1.9 4.2 2.2 3.8 0.3 1.8
=========================================================================================================================
=========================================================================================================================
Table B1. Labor productivity growth and related measures - revised and previously published first-quarter 2018
(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 0.3 2.6 2.3 3.7 0.2 3.4
Previously published 0.4 2.7 2.3 3.3 -0.2 2.9
Business Revised 0.6 2.5 1.9 4.3 0.7 3.7
Previously published 0.7 2.6 1.8 3.9 0.4 3.1
Manufacturing Revised -1.0 1.9 2.9 4.4 0.9 5.5
Previously published -1.2 1.7 2.9 3.9 0.4 5.2
Durable Revised 0.1 4.1 4.0 5.6 2.0 5.5
manufacturing Previously published -0.8 3.3 4.2 5.8 2.2 6.7
Nondurable Revised -1.4 -0.5 1.0 2.0 -1.5 3.4
manufacturing Previously published -0.9 0.0 0.9 0.0 -3.4 0.9
=========================================================================================================================
=========================================================================================================================
Table C1. Labor productivity growth and related measures – revised and previous annual average changes: 2015-2017
Labor Hours Hourly Real hourly Unit labor
Sector Year productivity Output worked compensation compensation costs
-------------------------------------------------------------------------------------------------------------------------
Nonfarm 2017 Revised 1.1 2.7 1.6 3.4 1.2 2.2
business Previously published 1.3 2.9 1.6 1.7 -0.5 0.4
2016 Revised 0.1 1.6 1.5 1.1 -0.2 0.9
Previously published 0.0 1.5 1.5 1.1 -0.2 1.1
2015 Revised 1.3 3.5 2.1 3.1 2.9 1.8
Previously published 1.2 3.4 2.2 3.1 2.9 1.8
Manufacturing 2017 Revised 0.7 1.8 1.0 3.3 1.1 2.6
Previously published 0.7 1.8 1.0 1.7 -0.4 1.0
2016 Revised 0.3 0.4 0.0 0.6 -0.7 0.3
Previously published 0.3 0.4 0.0 0.7 -0.5 0.4
2015 Revised -1.5 -0.6 1.0 2.5 2.4 4.1
Previously published -1.5 -0.6 1.0 2.5 2.3 4.1
Nonfinancial 2017 Revised 1.6 3.4 1.7 3.2 1.0 1.5
corporate Previously published 1.0 2.8 1.7 1.6 -0.6 0.5
2016 Revised 0.0 1.5 1.5 1.1 -0.2 1.0
Previously published -0.1 1.4 1.5 1.1 -0.2 1.2
2015 Revised 1.2 3.4 2.2 3.1 2.9 1.8
Previously published 1.4 3.6 2.2 3.0 2.8 1.6
=========================================================================================================================
TECHNICAL NOTES
Labor Hours
Hours 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.
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. Business output accounted for about 76 percent of the value of GDP in 2017. Nonfarm business,
which excludes farming, accounted for about 75 percent of GDP in 2017.
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 49 percent of the value of GDP in 2017.
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)
2018 II 3.6 5.0 1.3 2.4 0.8 -1.1 9.7 3.4
I 0.6 r 2.5 r 1.9 r 4.3 r 0.7 r 3.7 r -0.4 r 1.9 r
2017 ANNUAL 1.1 r 2.6 r 1.5 3.4 r 1.2 r 2.3 r 1.0 r 1.7 r
2017 IV -1.1 r 2.9 r 4.1 1.2 r -2.1 r 2.4 r 3.6 r 2.9 r
III 2.8 r 3.5 r 0.7 5.6 r 3.4 r 2.8 r 0.9 r 2.0 r
II 1.6 3.7 2.1 1.3 r 1.2 r -0.3 r 2.3 r 0.8 r
I -0.2 r 1.9 r 2.0 4.0 r 1.0 r 4.2 r -1.3 r 1.8 r
2016 ANNUAL 0.2 r 1.7 r 1.5 1.0 r -0.2 0.9 r 0.9 r 0.9 r
2016 IV 1.9 2.2 0.3 5.6 r 2.7 r 3.6 r -0.6 r 1.7 r
III 1.6 r 2.2 r 0.6 r 2.5 r 0.6 r 0.9 r 1.7 r 1.3 r
II 0.7 r 2.6 1.9 r 0.3 r -2.3 r -0.4 r 7.7 r 3.1 r
I 0.2 r 1.6 r 1.4 0.0 r 0.1 r -0.2 r -1.5 r -0.8 r
---------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2018 II 1.4 3.4 2.0 3.4 0.7 1.9 3.4 2.5
I 0.9 r 3.1 r 2.2 3.1 r 0.8 r 2.1 r 1.6 r 1.9 r
2017 ANNUAL 1.1 r 2.6 r 1.5 3.4 r 1.2 r 2.3 r 1.0 r 1.7 r
2017 IV 0.8 r 3.0 r 2.2 3.0 r 0.9 r 2.3 r 1.4 r 1.9 r
III 1.5 2.8 1.3 4.1 r 2.1 r 2.6 r 0.3 r 1.6
II 1.2 r 2.5 r 1.3 3.3 r 1.4 r 2.1 r 0.5 r 1.4
I 1.0 r 2.2 r 1.2 3.1 r 0.5 r 2.1 r 1.8 r 2.0 r
2016 ANNUAL 0.2 r 1.7 r 1.5 1.0 r -0.2 0.9 r 0.9 r 0.9 r
2016 IV 1.1 2.1 1.0 2.1 r 0.3 r 1.0 r 1.8 r 1.3 r
III -0.1 1.6 1.8 0.5 r -0.7 r 0.6 r 1.0 r 0.8 r
II -0.4 1.3 r 1.6 0.4 r -0.7 r 0.7 r 0.9 r 0.8 r
I 0.1 r 1.6 r 1.6 1.2 r 0.1 r 1.2 r -0.2 r 0.6 r
---------------------------------------------------------------------------------------------------
Indexes 2012=100
2018 II 105.4 117.5 111.4 114.9 105.1 109.0 108.5 108.8
I 104.5 r 116.0 r 111.1 r 114.2 r 104.9 r 109.3 r 106.0 r 107.9 r
2017 ANNUAL 104.1 r 114.0 r 109.5 r 111.9 r 104.6 r 107.5 r 105.1 r 106.5 r
2017 IV 104.3 r 115.3 r 110.6 r 113.0 r 104.7 r 108.3 r 106.1 r 107.4 r
III 104.6 r 114.5 r 109.5 r 112.7 r 105.3 r 107.7 r 105.1 r 106.6 r
II 103.9 r 113.5 r 109.3 r 111.2 r 104.4 r 107.0 r 104.9 r 106.1 r
I 103.5 r 112.5 r 108.7 r 110.8 r 104.1 r 107.0 r 104.3 r 105.8 r
2016 ANNUAL 102.9 r 111.1 r 107.9 r 108.2 r 103.4 r 105.2 r 104.1 r 104.7 r
2016 IV 103.5 r 112.0 r 108.2 r 109.7 r 103.8 r 105.9 r 104.6 r 105.4 r
III 103.1 r 111.4 r 108.1 r 108.2 r 103.1 r 105.0 r 104.8 r 104.9 r
II 102.7 r 110.8 r 107.9 r 107.6 r 103.0 r 104.8 r 104.4 r 104.6 r
I 102.5 r 110.1 r 107.4 r 107.5 r 103.6 r 104.9 r 102.4 r 103.8 r
---------------------------------------------------------------------------------------------------
See footnotes following Table 6. August 15, 2018
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)
2018 II 2.9 4.8 1.9 2.0 0.3 -0.9 9.6 3.5
I 0.3 r 2.6 r 2.3 3.7 r 0.2 r 3.4 r -0.3 r 1.8 r
2017 ANNUAL 1.1 r 2.7 r 1.6 3.4 r 1.2 r 2.2 r 0.9 r 1.6 r
2017 IV -0.3 r 3.0 r 3.3 1.9 r -1.3 r 2.3 r 3.7 r 2.9 r
III 2.3 r 3.6 r 1.3 5.1 r 2.9 r 2.8 r 1.1 r 2.1 r
II 1.6 r 3.8 r 2.2 1.3 r 1.2 r -0.3 r 2.3 r 0.8 r
I 0.4 r 1.9 r 1.5 4.7 r 1.6 r 4.2 r -2.4 r 1.3 r
2016 ANNUAL 0.1 r 1.6 r 1.5 1.1 -0.2 0.9 r 1.2 r 1.1 r
2016 IV 1.3 r 2.3 r 1.0 4.7 r 1.9 r 3.4 r -0.1 r 1.8 r
III 1.3 r 2.2 r 0.9 2.2 r 0.3 r 0.9 r 2.2 r 1.5 r
II 0.9 r 2.5 1.6 r 0.7 r -2.0 r -0.2 r 7.8 r 3.2 r
I 0.3 r 1.6 r 1.3 0.1 r 0.1 r -0.2 r -0.5 r -0.3 r
---------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2018 II 1.3 3.5 2.2 3.2 0.5 1.9 3.5 2.6
I 1.0 r 3.2 r 2.3 3.0 r 0.7 r 2.0 r 1.7 r 1.9 r
2017 ANNUAL 1.1 r 2.7 r 1.6 3.4 r 1.2 r 2.2 r 0.9 r 1.6 r
2017 IV 1.0 r 3.1 r 2.1 3.2 r 1.1 r 2.2 r 1.1 r 1.8 r
III 1.4 2.9 r 1.5 3.9 r 1.9 r 2.5 r 0.2 r 1.5
II 1.2 r 2.6 r 1.4 3.2 r 1.3 r 2.0 r 0.5 r 1.4 r
I 1.0 r 2.2 r 1.2 3.1 r 0.5 r 2.0 r 1.8 r 1.9 r
2016 ANNUAL 0.1 r 1.6 r 1.5 1.1 -0.2 0.9 r 1.2 r 1.1 r
2016 IV 1.0 r 2.1 1.2 1.9 r 0.1 r 0.9 r 2.3 r 1.5 r
III -0.1 1.6 1.7 0.6 r -0.6 r 0.7 r 1.5 r 1.0 r
II -0.3 r 1.2 r 1.5 0.5 r -0.6 r 0.8 r 1.2 r 1.0 r
I 0.0 r 1.6 r 1.6 1.2 r 0.1 r 1.2 r 0.0 r 0.7 r
---------------------------------------------------------------------------------------------------
Indexes 2012=100
2018 II 105.1 117.3 111.6 114.9 105.1 109.3 109.3 109.3
I 104.3 r 115.9 r 111.1 r 114.3 r 105.0 r 109.6 r 106.8 r 108.4 r
2017 ANNUAL 103.9 r 113.8 r 109.5 r 112.1 r 104.8 r 107.9 r 105.9 r 107.0 r
2017 IV 104.3 r 115.2 r 110.5 r 113.3 r 105.0 r 108.7 r 106.9 r 107.9 r
III 104.3 r 114.3 r 109.6 r 112.8 r 105.3 r 108.1 r 105.9 r 107.1 r
II 103.8 r 113.3 r 109.2 r 111.4 r 104.6 r 107.3 r 105.6 r 106.6 r
I 103.4 r 112.3 r 108.6 r 111.0 r 104.3 r 107.4 r 105.0 r 106.4 r
2016 ANNUAL 102.8 r 110.8 r 107.8 r 108.5 r 103.6 r 105.5 r 104.9 r 105.3 r
2016 IV 103.2 r 111.7 r 108.2 r 109.7 r 103.9 r 106.3 r 105.7 r 106.0 r
III 102.9 r 111.1 r 108.0 r 108.5 r 103.4 r 105.4 r 105.7 r 105.6 r
II 102.6 r 110.5 r 107.7 r 107.9 r 103.3 r 105.2 r 105.1 r 105.2 r
I 102.3 r 109.8 r 107.3 r 107.7 r 103.8 r 105.2 r 103.2 r 104.4 r
---------------------------------------------------------------------------------------------------
See footnotes following Table 6. August 15, 2018
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)
2018 II 0.9 1.9 1.0 1.5 -0.1 0.6
I -1.0 r 1.9 r 2.9 4.4 r 0.9 r 5.5 r
2017 ANNUAL 0.7 1.8 1.0 3.3 r 1.1 r 2.6 r
2017 IV 4.4 r 5.5 r 1.1 1.6 r -1.7 r -2.7 r
III -5.0 -1.9 3.3 2.4 r 0.3 r 7.8 r
II 3.5 2.9 -0.6 3.0 r 2.9 r -0.5 r
I -0.3 r 2.2 2.5 3.9 r 0.9 r 4.2 r
2016 ANNUAL 0.3 0.4 0.0 0.6 r -0.7 r 0.3 r
2016 IV 2.6 2.4 -0.3 5.8 r 3.0 r 3.0 r
III 0.6 1.7 1.1 1.8 r -0.1 r 1.2 r
II -0.8 r -1.1 -0.2 1.5 r -1.2 r 2.3 r
I 2.5 1.8 -0.6 -2.7 r -2.6 r -5.0 r
---------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2018 II -0.2 1.8 2.1 2.5 -0.2 2.7
I 0.4 r 2.1 r 1.6 r 2.8 r 0.6 2.4 r
2017 ANNUAL 0.7 1.8 1.0 3.3 r 1.1 r 2.6 r
2017 IV 0.6 2.1 1.5 2.7 r 0.6 r 2.1 r
III 0.2 1.4 1.2 3.8 r 1.7 r 3.6 r
II 1.6 2.3 0.7 3.6 r 1.7 r 2.0 r
I 0.5 1.3 0.8 3.2 r 0.6 r 2.7 r
2016 ANNUAL 0.3 0.4 0.0 0.6 r -0.7 r 0.3 r
2016 IV 1.2 1.2 0.0 1.6 r -0.3 r 0.3 r
III -0.2 0.3 0.4 -0.2 r -1.3 r 0.0 r
II 0.2 0.0 -0.2 0.4 r -0.7 r 0.2 r
I 0.1 -0.1 -0.1 0.6 r -0.5 r 0.6 r
---------------------------------------------------------------------------------------------------
Indexes 2012=100
2018 II 100.8 106.9 106.1 112.6 103.0 111.7
I 100.6 r 106.4 r 105.8 r 112.2 r 103.0 r 111.5 r
2017 ANNUAL 100.4 r 104.9 r 104.5 r 110.1 r 102.9 r 109.6 r
2017 IV 100.8 r 105.9 r 105.1 r 111.0 r 102.8 r 110.1 r
III 99.7 r 104.5 r 104.8 r 110.5 r 103.3 r 110.8 r
II 101.0 r 105.0 r 104.0 r 109.9 r 103.2 r 108.8 r
I 100.2 r 104.3 r 104.1 r 109.1 r 102.5 r 108.9 r
2016 ANNUAL 99.7 r 103.1 r 103.4 r 106.6 r 101.8 r 106.9 r
2016 IV 100.2 r 103.7 r 103.5 r 108.0 r 102.2 r 107.8 r
III 99.6 r 103.1 r 103.5 r 106.5 r 101.5 r 107.0 r
II 99.4 r 102.7 r 103.3 r 106.1 r 101.5 r 106.7 r
I 99.6 r 103.0 r 103.3 r 105.7 r 101.8 r 106.0 r
---------------------------------------------------------------------------------------------------
See footnotes following Table 6. August 15, 2018
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)
2018 II 0.9 2.4 1.4 1.3 -0.3 0.4
I 0.1 r 4.1 r 4.0 r 5.6 r 2.0 r 5.5 r
2017 ANNUAL 1.1 1.7 0.6 4.1 r 1.9 r 2.9 r
2017 IV 4.8 r 5.2 r 0.4 2.2 r -1.1 r -2.4 r
III -4.8 -2.3 2.6 2.4 r 0.3 r 7.6 r
II 4.6 r 2.1 -2.3 r 6.1 r 6.0 r 1.5 r
I -0.8 r 2.8 3.6 r 3.4 r 0.4 r 4.2 r
2016 ANNUAL -0.8 -1.2 -0.4 0.9 r -0.3 r 1.8 r
2016 IV 3.1 2.5 -0.6 6.8 r 4.0 r 3.6 r
III 1.9 2.2 0.3 2.2 r 0.4 r 0.3 r
II -0.4 -1.9 -1.5 1.9 r -0.8 r 2.3 r
I -1.2 -1.1 0.1 -2.1 r -2.0 r -0.9 r
---------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2018 II 0.2 2.3 2.1 2.9 0.2 2.7
I 1.1 r 2.2 r 1.1 r 4.1 r 1.8 r 2.9 r
2017 ANNUAL 1.1 1.7 0.6 4.1 r 1.9 r 2.9 r
2017 IV 0.9 r 1.9 1.0 3.5 r 1.4 r 2.6 r
III 0.5 1.2 0.8 4.7 r 2.6 r 4.2 r
II 2.2 2.4 0.2 4.6 r 2.6 r 2.4 r
I 0.9 1.4 0.4 r 3.6 r 0.9 r 2.6 r
2016 ANNUAL -0.8 -1.2 -0.4 0.9 r -0.3 r 1.8 r
2016 IV 0.8 0.4 -0.4 2.2 r 0.3 r 1.3 r
III -1.3 -1.4 0.0 0.2 r -0.9 r 1.6 r
II -1.4 -2.0 -0.7 0.7 r -0.4 r 2.1 r
I -1.5 -1.9 -0.4 0.7 -0.4 2.2
---------------------------------------------------------------------------------------------------
Indexes 2012=100
2018 II 101.4 107.3 105.8 113.7 104.0 112.1
I 101.2 r 106.7 r 105.4 r 113.3 r 104.1 r 112.0 r
2017 ANNUAL 100.6 r 104.8 r 104.2 r 110.6 r 103.4 r 110.0 r
2017 IV 101.1 r 105.6 r 104.4 r 111.8 r 103.6 r 110.5 r
III 100.0 r 104.3 r 104.3 r 111.2 r 103.9 r 111.2 r
II 101.2 r 104.9 r 103.6 r 110.5 r 103.8 r 109.2 r
I 100.1 r 104.3 r 104.3 r 108.9 r 102.3 r 108.8 r
2016 ANNUAL 99.5 r 103.0 r 103.5 r 106.3 r 101.5 r 106.8 r
2016 IV 100.3 r 103.6 r 103.3 r 108.0 r 102.2 r 107.7 r
III 99.5 r 103.0 r 103.5 r 106.2 r 101.2 r 106.8 r
II 99.0 r 102.4 r 103.4 r 105.7 r 101.1 r 106.7 r
I 99.1 r 102.9 r 103.8 r 105.2 r 101.3 r 106.1 r
---------------------------------------------------------------------------------------------------
See footnotes following Table 6. August 15, 2018
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)
2018 II 1.1 1.5 0.4 1.9 0.2 0.8
I -1.4 r -0.5 r 1.0 r 2.0 r -1.5 r 3.4 r
2017 ANNUAL -0.2 1.6 1.8 2.0 r -0.2 r 2.2 r
2017 IV 3.5 5.8 2.2 0.5 r -2.8 r -2.9 r
III -5.5 -1.4 4.3 2.6 r 0.5 r 8.6 r
II 1.2 r 3.7 2.4 r -2.5 r -2.6 r -3.7 r
I 0.8 r 1.5 0.7 r 4.6 r 1.6 r 3.8 r
2016 ANNUAL 0.7 1.4 0.7 0.0 r -1.2 -0.6
2016 IV 1.7 1.9 0.2 3.9 r 1.2 r 2.2 r
III -1.9 0.5 2.4 1.1 r -0.7 r 3.1 r
II -3.2 -1.2 2.0 0.9 r -1.7 r 4.2 r
I 5.8 r 3.7 -1.9 -3.9 r -3.9 r -9.1 r
---------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2018 II -0.6 1.3 2.0 1.7 -0.9 2.4
I -0.6 r 1.9 r 2.5 0.6 r -1.6 r 1.2 r
2017 ANNUAL -0.2 1.6 1.8 2.0 r -0.2 r 2.2 r
2017 IV -0.1 2.4 2.4 1.3 r -0.8 r 1.3 r
III -0.5 1.4 1.9 2.1 r 0.2 r 2.6 r
II 0.4 1.9 1.4 1.8 r -0.1 r 1.3 r
I -0.7 r 0.6 1.3 2.6 r 0.1 r 3.3 r
2016 ANNUAL 0.7 1.4 0.7 0.0 r -1.2 -0.6
2016 IV 0.5 1.2 0.7 0.5 r -1.3 r 0.0 r
III 0.0 1.2 1.2 -0.9 r -2.0 r -0.8 r
II 0.9 1.5 0.7 0.0 r -1.1 r -0.8 r
I 1.4 1.8 0.4 0.5 r -0.6 r -0.9 r
---------------------------------------------------------------------------------------------------
Indexes 2012=100
2018 II 100.6 107.2 106.6 110.6 101.2 109.9
I 100.4 r 106.8 r 106.5 r 110.0 r 101.1 r 109.7 r
2017 ANNUAL 100.7 r 105.8 r 105.0 r 109.2 r 102.1 r 108.5 r
2017 IV 100.7 r 107.0 r 106.2 r 109.5 r 101.5 r 108.7 r
III 99.8 r 105.5 r 105.6 r 109.4 r 102.2 r 109.6 r
II 101.3 r 105.8 r 104.5 r 108.7 r 102.1 r 107.3 r
I 101.0 r 104.9 r 103.9 r 109.4 r 102.7 r 108.3 r
2016 ANNUAL 100.9 r 104.1 r 103.2 r 107.1 r 102.3 r 106.2 r
2016 IV 100.8 r 104.5 r 103.7 r 108.1 r 102.3 r 107.3 r
III 100.3 r 104.0 r 103.6 r 107.1 r 102.0 r 106.7 r
II 100.8 r 103.9 r 103.0 r 106.8 r 102.2 r 105.9 r
I 101.6 r 104.2 r 102.5 r 106.5 r 102.7 r 104.8 r
---------------------------------------------------------------------------------------------------
See footnotes following Table 6. August 15, 2018
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)
2018 I 3.0 r 5.3 r 2.2 4.4 r 0.9 r 1.4 r -1.0 r 0.6 r 5.5 r 1.2 r
2017 ANNUAL 1.6 r 3.4 r 1.7 3.2 r 1.0 r 1.5 r 1.0 r 1.3 r -2.1 r 0.9 r
2017 IV 1.4 r 4.2 r 2.7 0.3 r -2.9 r -1.1 r 0.5 r -0.6 r 7.8 r 0.4 r
III 1.1 r 2.5 r 1.5 2.8 r 0.6 r 1.7 r 0.6 r 1.3 r -17.1 r -1.2 r
II 4.5 r 7.4 r 2.7 -0.1 r -0.2 r -4.4 r -2.4 r -3.7 r 7.5 r -2.4 r
I 3.1 r 5.0 r 1.8 8.1 r 5.0 r 4.9 r 0.0 r 3.2 r 10.6 r 4.1 r
2016 ANNUAL 0.0 r 1.5 r 1.5 1.1 -0.2 1.0 r 0.1 r 0.7 -6.8 r -0.3 r
2016 IV -2.4 r -1.7 r 0.7 3.4 r 0.6 r 6.0 r 7.6 r 6.5 r -9.1 r 4.4 r
III 4.7 r 6.3 r 1.5 1.5 r -0.4 r -3.1 r -3.6 r -3.3 r -5.4 r -3.5 r
II -4.8 r -3.6 r 1.3 0.3 r -2.4 r 5.4 r 6.5 r 5.8 r -21.8 r 1.6 r
I 3.3 r 3.8 r 0.5 r 2.0 r 2.1 r -1.2 r -14.3 r -5.7 r 31.2 r -1.5 r
---------------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2018 I 2.5 r 4.8 r 2.3 1.8 r -0.4 r -0.6 r -0.6 r -0.6 r 0.3 r -0.5 r
2017 ANNUAL 1.6 r 3.4 r 1.7 3.2 r 1.0 r 1.5 r 1.0 r 1.3 r -2.1 r 0.9 r
2017 IV 2.5 r 4.8 r 2.2 2.7 r 0.6 r 0.2 r -0.3 r 0.0 r 1.5 r 0.2 r
III 1.5 r 3.2 r 1.7 3.5 r 1.5 r 1.9 r 1.4 r 1.8 r -2.7 r 1.2 r
II 2.4 r 4.2 r 1.7 3.2 r 1.3 r 0.7 r 0.3 r 0.6 r 0.5 r 0.6 r
I 0.1 r 1.4 r 1.3 3.3 r 0.7 r 3.2 r 2.5 r 3.0 r -7.1 r 1.6 r
2016 ANNUAL 0.0 r 1.5 r 1.5 1.1 -0.2 1.0 r 0.1 r 0.7 -6.8 r -0.3 r
2016 IV 0.1 r 1.1 r 1.0 1.8 r 0.0 r 1.7 r -1.4 r 0.7 r -3.1 r 0.2 r
III 0.3 r 1.9 r 1.6 0.7 r -0.5 r 0.4 r 0.2 r 0.4 -11.6 r -1.4 r
II -0.7 r 1.0 r 1.7 0.6 r -0.5 r 1.2 r 1.1 r 1.2 r -7.7 r 0.0 r
I 0.3 r 2.0 r 1.7 1.2 0.1 0.9 r 0.4 r 0.7 r -4.4 r 0.0 r
---------------------------------------------------------------------------------------------------------
Indexes 2012=100
2018 I 105.2 r 118.0 r 112.2 r 113.4 r 104.2 r 107.8 r 103.8 r 106.5 r 91.9 r 104.4 r
2017 ANNUAL 103.7 r 114.7 r 110.6 r 111.7 r 104.5 r 107.7 r 104.1 r 106.5 r 91.2 r 104.3 r
2017 IV 104.4 r 116.5 r 111.5 r 112.2 r 104.0 r 107.4 r 104.1 r 106.3 r 90.7 r 104.1 r
III 104.1 r 115.3 r 110.8 r 112.1 r 104.7 r 107.7 r 104.0 r 106.5 r 89.0 r 104.0 r
II 103.8 r 114.6 r 110.4 r 111.3 r 104.6 r 107.3 r 103.8 r 106.1 r 93.3 r 104.3 r
I 102.6 r 112.6 r 109.7 r 111.4 r 104.6 r 108.5 r 104.4 r 107.1 r 91.6 r 104.9 r
2016 ANNUAL 102.1 r 111.0 r 108.7 r 108.3 r 103.4 r 106.1 r 103.1 r 105.1 r 93.1 r 103.4 r
2016 IV 101.9 r 111.2 r 109.2 r 109.2 r 103.3 r 107.2 r 104.4 r 106.3 r 89.4 r 103.9 r
III 102.5 r 111.7 r 109.0 r 108.3 r 103.2 r 105.7 r 102.5 r 104.6 r 91.5 r 102.8 r
II 101.3 r 110.0 r 108.6 r 107.9 r 103.3 r 106.5 r 103.5 r 105.5 r 92.8 r 103.7 r
I 102.6 r 111.0 r 108.2 r 107.8 r 103.9 r 105.1 r 101.9 r 104.0 r 98.7 r 103.3 r
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6. August 15, 2018
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 -1.5 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 first
quarter of 2018.
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 1978-2017 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
adjustments.
United States Department of Labor
