Transmission of this material is embargoed until USDL-09-1066
8:30 a.m. (EDT) Wednesday, September 2, 2009
Technical information: (202) 691-5606 • dprweb@bls.gov • www.bls.gov/lpc
Media contact: (202) 691-5902 • PressOffice@bls.gov
PRODUCTIVITY AND COSTS
Second Quarter 2009, Revised
Nonfarm business sector labor productivity increased at a 6.6 percent
annual rate during the second quarter of 2009, the U.S. Bureau of Labor
Statistics reported today. This was the largest productivity increase
since the third quarter of 2003, and reflects declines of 1.5 percent in
output and 7.6 percent in hours worked. (All quarterly percent changes in
this release are seasonally adjusted annual rates.) From the second
quarter of 2008 to the second quarter of 2009, output fell 5.5 percent
while hours fell 7.2 percent, yielding an increase in productivity of 1.9
percent (tables A and 2). Nonfarm business productivity increased at an
annual rate of 2.5 percent from 2000 through 2008.
Labor productivity, or output per hour, is calculated by dividing an index
of real output by an index of hours of all persons, including employees,
proprietors, and unpaid family workers.
Unit labor costs in nonfarm businesses fell 5.9 percent in the second
quarter of 2009, with the decline due entirely to the increase in
productivity; hourly compensation increased slightly. Unit labor costs
declined 1.2 percent over the last four quarters, as a 1.9 percent
increase in output per hour was partially offset by a 0.7 percent increase
in hourly compensation (tables A and 2).
BLS defines 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.
Productivity increased 6.5 percent in the business sector in the second
quarter of 2009. Unit labor costs decreased 6.0 percent during the second
quarter of 2009 (tables A and 1).
Manufacturing sector productivity grew 4.9 percent in the second quarter
of 2009, as output fell 9.8 percent and hours worked decreased 14.0
percent; declines in output and hours were much larger in durable goods
industries than in nondurable goods industries (tables A, 3, 4 and 5).
The productivity gain in the manufacturing sector was the largest since
the first quarter of 2005. Unit labor costs in manufacturing edged up 0.2
percent in the second quarter of 2009 and increased 6.7 percent over the
last four quarters (tables A and 3).
The data sources and methods used in the preparation of the manufacturing
output series differ from those used in preparing the business and nonfarm
business output series, and these measures are not directly comparable.
See Technical Notes for further information on data sources.
Revised measures
Table B presents previous and revised productivity and related measures
for the major sectors: business, nonfarm business and manufacturing, for
the first and second quarters of 2009.
In the second quarter of 2009, nonfarm business productivity was revised
up by 0.2 percentage point from the estimate published on August 11,
reflecting a 0.2 percentage point upward revision to output; hours were
not revised. Unit labor costs were revised down by 0.1 percentage point
in the second quarter. In the manufacturing sector, productivity was
revised down by 0.4 percentage point in the second quarter.
In the first quarter of 2009, nonfarm business productivity was not
revised. Unit labor costs fell 5.0 percent rather than decreasing 2.7
percent as previously reported, due to a 2.3 percent downward revision to
hourly compensation. In the manufacturing sector, first quarter
productivity was unrevised. Unit labor costs were revised down by 2.6
percentage points.
From the first quarter of 1987, unit labor costs, hourly compensation, and
real hourly compensation were revised in the manufacturing sector and its
subsectors. This was the result of addressing a series break between 2000
and 2001 in the manufacturing compensation series published on August 11.
The SIC-based data prior to 2001 have been linked to the NAICS-based
series. This revision eliminates the break in series at 2001 for the
manufacturing sector data based on compensation; percent changes in 2001
were revised substantially. There were small revisions to percent changes
in other years and quarters. Because the base year for the indexes (1992)
was adjusted, index values for the entire series were subject to revision.
Revised quarterly and annual series for recent years appear in tables 3-5
and revised annual indexes are displayed in appendix tables 1-3. Full
historical annual and quarterly measures can be found on the productivity
and costs home page https://www.bls.gov/lpc/#data.
___________
The preliminary Productivity and Costs press release for third-quarter
2009 is scheduled to be released on Thursday, November 5, 2009 at 8:30
a.m. (EST).
======================================================================================================
Table A. Revised second-quarter 2009 measures, percent change from previous quarter, annual rate
(Q to Q) and from same quarter a year ago (Y to Y)
Sector Nonfarm Manufacturing Manufacturing
Business Business Manufacturing Durables Nondurables
Q to Q Y to Y Q to Q Y to Y Q to Q Y to Y Q to Q Y to Y Q to Q Y to Y
------------------------------------------------------------------------------------------------------
Productivity 6.6 1.9 6.5 1.9 4.9 -1.4 3.1 -5.2 2.2 -0.2
Output -1.5 -5.5 -1.4 -5.3 -9.8 -15.0 -16.4 -21.1 -3.2 -8.8
Hours -7.6 -7.2 -7.5 -7.1 -14.0 -13.8 -18.9 -16.8 -5.3 -8.6
Hourly compensation 0.3 0.7 0.2 0.6 5.1 5.2 7.9 6.2 1.5 4.1
Real hourly
compensation -1.0 1.6 -1.2 1.5 3.7 6.2 6.5 7.2 0.2 5.1
Unit labor costs -5.9 -1.2 -6.0 -1.3 0.2 6.7 4.6 12.0 -0.7 4.2
======================================================================================================
Table B. Revised and previous measures for: second quarter and first quarter 2009
Sector Nonfarm Manufacturing Manufacturing
Business Business Manufacturing Durables Nondurables
Revised Previous Revised Previous Revised Previous Revised Previous Revised Previous
------------------------------------------------------------------------------------------------------
Percent change, annual rate, second quarter 2009
Productivity 6.6 6.4 6.5 6.3 4.9 5.3 3.1 3.9 2.2 2.0
Output -1.5 -1.7 -1.4 -1.8 -9.8 -9.9 -16.4 -16.5 -3.2 -3.4
Hours -7.6 -7.6 -7.5 -7.5 -14.0 -14.4 -18.9 -19.6 -5.3 -5.3
Hourly
compensation 0.3 0.2 0.2 0.1 5.1 5.8 7.9 8.7 1.5 2.0
Real hourly
compensation -1.0 -1.1 -1.2 -1.2 3.7 4.4 6.5 7.3 0.2 0.7
Unit labor
costs -5.9 -5.8 -6.0 -5.8 0.2 0.5 4.6 4.7 -0.7 0.0
------------------------------------------------------------------------------------------------------
Percent change, annual rate, first quarter 2009
Productivity 0.3 0.3 0.2 0.2 -2.6 -2.6 -10.7 -10.5 2.1 2.0
Output -8.8 -8.8 -8.7 -8.7 -21.9 -21.8 -31.7 -31.5 -11.2 -11.3
Hours -9.0 -9.0 -8.9 -8.9 -19.8 -19.8 -23.5 -23.5 -13.0 -13.0
Hourly
compensation -4.7 -2.4 -4.7 -2.5 -0.4 2.2 0.7 3.3 -1.5 1.2
Real hourly
compensation -2.4 -0.1 -2.4 -0.1 2.0 4.6 3.1 5.7 0.9 3.6
Unit labor
costs -5.0 -2.7 -4.9 -2.7 2.3 4.9 12.8 15.4 -3.5 -0.7
======================================================================================================
Table C. Nonfinancial corporations: preliminary second quarter 2009 and revised first quarter 2009
productivity and cost measures
Real
Hourly hourly Unit Implicit
Produc- compen- compen- labor Unit price
tivity Output Hours sation sation costs profits deflator
------------------------------------------------------------------------------------------------------
Percent change, annual rate, second quarter 2009
Q to Q 6.2 -2.6 -8.3 1.8 0.4 -4.2 22.5 -1.1
Y to Y 0.0 -7.4 -7.4 1.6 2.5 1.5 -0.4 2.8
Percent change, annual rate, first quarter 2009
Revised -7.3 -17.1 -10.5 -4.7 -2.4 2.9 -5.8 5.3
Previous -6.0 -15.9 -10.5 -2.5 -0.2 3.7 -7.2 5.3
======================================================================================================
TECHNICAL NOTES
Labor Hours: Hours data for the labor productivity and cost measures
include hours for all persons working in the sector—wage and salary
workers, the self-employed and unpaid family workers. The primary source
of hours and employment data is the BLS Current Employment Statistics
(CES) program, which provides monthly survey data on the number of jobs
held by wage and salary workers in nonfarm establishments. The CES also
provides average weekly paid hours of production and nonsupervisory
workers in these establishments. Weekly paid hours are adjusted to hours
at work using data from the National Compensation Survey (NCS). The BLS
Hours at Work survey, conducted for this purpose, was used for earlier
years. The Office of Productivity and Technology estimates average weekly
hours at work for nonproduction and supervisory workers using information
from the Current Population Survey (CPS), the CES, and the NCS.
Data from the CPS are used for farm labor, nonfarm proprietors, and
nonfarm unpaid family workers. Estimates of labor input for government
enterprises are derived from the CPS, the CES, and the National Income and
Product Accounts (NIPA) prepared by the Bureau of Economic Analysis (BEA)
of the Department of Commerce.
The CES measures jobs, counting a person who is employed by two or
more establishments at each place of employment. In contrast, the CPS
features measures of employment that count each person only once and
classify each person according to his or her primary job; hours worked at
all jobs by that person accrue to his or her primary job. However, the
CPS also collects more detailed information on employment and hours worked
at primary jobs and all other jobs, separately. The BLS productivity
measures use the more detailed information on employment and hours to
assign all hours worked to the correct industrial sector and avoid
duplicating hours data from the CES.
Output: Business sector output is a chain-type, current-weighted index
constructed after excluding from gross domestic product (GDP) the
following outputs: general government, nonprofit institutions, and private
households (including owner-occupied housing). Corresponding exclusions
also are made in labor inputs. Business output accounted for about 77
percent of the value of GDP in 2005. Nonfarm business, which excludes
farming, accounted for about 76 percent of GDP in 2005.
Annual indexes for manufacturing and its durable and nondurable goods
components are constructed by deflating current-dollar industry value of
production data from the U.S. Bureau of the Census with deflators from the
BLS. These deflators are based on data from the BLS producer price
program and other sources. The industry shipments are aggregated using
annual weights, and intrasector transactions are removed. Quarterly
manufacturing output measures are based on the index of industrial
production prepared monthly by the Board of Governors of the Federal
Reserve System, adjusted to be consistent with annual indexes of
manufacturing sector output prepared by BLS. Durables include the
following 3-digit NAICS industries: wood product manufacturing;
nonmetallic mineral product manufacturing; primary metal manufacturing;
fabricated metal product manufacturing; machinery manufacturing; computer
and electronic product manufacturing; electrical equipment and appliance
manufacturing; transportation equipment manufacturing; furniture and
related product manufacturing; and miscellaneous manufacturing.
Nondurables include: food manufacturing; beverage and tobacco product
manufacturing; textile mills; textile product mills; apparel
manufacturing; leather and allied product manufacturing; paper
manufacturing; printing and related support activities; petroleum and coal
products manufacturing; chemical manufacturing; and plastics and rubber
products manufacturing.
Nonfinancial corporate output is a chain-type, current-weighted index
calculated on the basis of the costs incurred and the incomes earned from
production. The output measure excludes the following outputs from GDP:
general government; nonprofit institutions; private households;
unincorporated business; and those corporations classified as offices of
bank holding companies, offices of other holding companies, or offices in
the finance and insurance sector. Nonfinancial corporations accounted for
about 50 percent of the value of GDP in 2005.
Productivity: These productivity measures describe the relationship
between real output and the labor time involved in its production. They
show the changes from period to period in the amount of goods and services
produced per hour. Although these measures relate output to hours at work
of all persons engaged in a sector, they do not measure the specific
contribution of labor, capital, or any other factor of production. Rather,
they reflect the joint effects of many influences, including changes in
technology; capital investment; level of output; utilization of capacity,
energy, and materials; the organization of production; managerial skill;
and the characteristics and effort of the work force.
Labor Compensation: Estimates of labor compensation by major sector,
required for measures of hourly compensation and unit labor costs, are
based primarily on employee compensation data from the NIPA, prepared by
the BEA. The compensation of employees in general government, nonprofit
institutions and private households are subtracted from compensation of
domestic employees to derive employee compensation for the business
sector. The labor compensation of proprietors cannot be explicitly
identified and must be estimated. This is done by assuming that
proprietors have the same hourly compensation as employees in the same
sector. The quarterly labor productivity and cost measures do not contain
estimates of compensation for unpaid family workers.
Unit Labor Costs: The measures of unit labor costs in this release
describe the relationship between compensation per hour and productivity,
or real output per hour, and can be used as an indicator of inflationary
pressure on producers. Increases in hourly compensation increase unit
labor costs; labor productivity increases offset compensation increases
and lower unit labor costs.
Presentation of the data: The quarterly data in this release are
presented in three ways; as index number series where 1992=100, as percent
changes from the corresponding quarter of the previous year, and as
percent changes from the previous quarter presented at a compound annual
rate. Annual data are presented both as index number series and percent
changes from the previous year.
The index numbers and rates of change reported in the productivity
and costs news release are rounded to one decimal place. All percent
changes in this release and on the BLS web site are calculated using index
numbers to three decimal places. These index numbers are available at the
BLS web site, http://www.bls.gov/data/home.htm, or by contacting the BLS
Division of Major Sector Productivity. (Telephone 202-691-5606 or email
DPRWEB@BLS.GOV)
Information in this release will be made available to sensory-
impaired individuals upon request. Voice phone: 202-691-5606; Federal
Relay Service number: 1-800-877-8339.
Table 1. Business sector: Productivity, hourly compensation, unit labor costs,
and prices, seasonally adjusted
Real
Year Output per Hours Compensa- compensa- Unit Unit non- Implicit
and hour of of all tion per tion per labor labor pay- price
quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4)
---------------------------------------------------------------------------------------------------------
Indexes 1992=100
2007 I 139.0 168.4 121.2 175.2 122.7 126.0 136.7 130.0
II 140.2 169.8 121.2 176.5 122.4 125.9 139.4 130.9
III 142.1 171.4 120.6 177.8 122.6 125.1 141.9 131.4
IV 142.6 172.3 120.8 179.6 122.1 125.9 141.9 131.9
ANNUAL 141.0 170.5 120.9 177.3 122.4 125.7 140.0 131.0
2008 I 142.7 171.7 120.3 180.3 121.2 126.3 141.7 132.1
II 143.8 172.2 119.8 181.0 120.4 125.9 143.8 132.5
III 143.9 170.6 118.6 183.0 119.9 127.2 145.4 134.0
IV 144.2 167.4 116.1 184.2 123.3 127.7 143.6 133.6
ANNUAL 143.6 170.5 118.7 182.1 121.1 126.8 143.6 133.0
2009 I 144.3 163.6 113.4 r182.0 r122.6 r126.1 r148.1 134.3
II r146.6 r163.1 r111.3 r182.0 r122.2 r124.2 r151.2 r134.2
---------------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2007 I 0.9 0.8 -0.1 4.4 0.6 3.5 4.8 4.0
II 3.5 3.5 0.0 3.1 -1.1 -0.4 8.0 2.8
III 5.5 3.7 -1.7 3.0 0.6 -2.4 7.4 1.4
IV 1.6 2.1 0.5 4.3 -1.4 2.6 0.2 1.6
ANNUAL 1.8 2.2 0.4 4.2 1.3 2.4 3.0 2.6
2008 I 0.2 -1.3 -1.5 1.5 -3.0 1.3 -0.5 0.6
II 3.1 1.1 -1.9 1.6 -2.8 -1.5 5.9 1.4
III 0.3 -3.7 -4.0 4.5 -1.6 4.2 4.5 4.3
IV 0.8 -7.2 -8.0 2.6 12.0 1.8 -4.9 -1.0
ANNUAL 1.9 0.0 -1.9 2.7 -1.1 0.8 2.6 1.5
2009 I 0.2 -8.7 -8.9 r-4.7 r-2.4 r-4.9 r13.3 2.1
II r6.5 r-1.4 -7.5 r0.2 -1.2 r-6.0 r8.5 r-0.2
---------------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2007 I 0.3 1.5 1.1 4.0 1.6 3.7 1.6 2.9
II 1.0 2.0 0.9 4.4 1.7 3.3 1.9 2.8
III 3.0 3.0 0.0 4.8 2.4 1.7 3.3 2.4
IV 2.9 2.5 -0.3 3.7 -0.3 0.8 5.1 2.5
ANNUAL 1.8 2.2 0.4 4.2 1.3 2.4 3.0 2.6
2008 I 2.7 2.0 -0.7 2.9 -1.2 0.2 3.7 1.6
II 2.6 1.4 -1.2 2.6 -1.7 0.0 3.2 1.2
III 1.3 -0.5 -1.7 2.9 -2.2 1.6 2.5 2.0
IV 1.1 -2.8 -3.9 2.5 1.0 1.4 1.2 1.3
ANNUAL 1.9 0.0 -1.9 2.7 -1.1 0.8 2.6 1.5
2009 I 1.1 -4.7 -5.7 r0.9 r1.1 r-0.2 r4.5 1.7
II 1.9 r-5.3 -7.1 r0.6 r1.5 r-1.3 r5.1 1.3
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6. September 2, 2009
r=revised Source: Bureau of Labor Statistics
Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs,
and prices, seasonally adjusted
Real
Year Output per Hours Compensa- compensa- Unit Unit non- Implicit
and hour of of all tion per tion per labor labor pay- price
quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4)
---------------------------------------------------------------------------------------------------------
Indexes 1992=100
2007 I 138.2 168.8 122.1 174.2 122.1 126.0 138.2 130.5
II 139.2 170.3 122.4 175.1 121.4 125.8 140.9 131.4
III 141.1 172.0 121.9 176.3 121.5 125.0 143.3 131.7
IV 141.8 172.8 121.9 178.5 121.3 125.9 143.0 132.2
ANNUAL 140.1 171.0 122.1 176.0 121.6 125.7 141.4 131.5
2008 I 141.7 172.0 121.4 179.2 120.5 126.4 142.5 132.3
II 142.8 172.6 120.8 179.8 119.6 125.9 144.9 132.9
III 142.8 170.8 119.6 181.8 119.1 127.3 146.6 134.4
IV 143.1 167.5 117.0 183.1 122.6 128.0 145.3 134.3
ANNUAL 142.6 170.7 119.7 181.0 120.4 126.9 144.8 133.5
2009 I 143.2 163.7 114.3 r180.9 r121.9 r126.3 r150.5 135.2
II r145.5 r163.1 r112.1 r181.1 r121.5 r124.4 r153.5 r135.1
---------------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2007 I 1.2 0.9 -0.3 4.7 0.8 3.5 3.9 3.6
II 2.8 3.7 0.9 2.0 -2.1 -0.7 8.1 2.7
III 5.5 3.9 -1.5 2.7 0.3 -2.7 7.0 1.1
IV 2.0 1.8 -0.2 5.0 -0.7 3.0 -0.9 1.4
ANNUAL 1.8 2.3 0.5 4.2 1.3 2.3 2.4 2.3
2008 I -0.1 -1.7 -1.6 1.7 -2.8 1.7 -1.5 0.5
II 3.1 1.3 -1.7 1.3 -3.0 -1.8 6.9 1.6
III -0.1 -4.0 -3.9 4.5 -1.6 4.6 4.7 4.6
IV 0.8 -7.6 -8.3 2.9 12.3 2.0 -3.5 -0.2
ANNUAL 1.8 -0.1 -1.9 2.8 -1.0 1.0 2.4 1.5
2009 I 0.3 -8.8 -9.0 r-4.7 r-2.4 r-5.0 r15.2 2.7
II r6.6 r-1.5 -7.6 r0.3 r-1.0 r-5.9 r8.2 r-0.3
---------------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2007 I 0.5 1.5 0.9 4.3 1.8 3.7 1.0 2.7
II 1.1 2.1 1.1 4.3 1.6 3.1 1.3 2.4
III 2.9 3.2 0.2 4.6 2.2 1.6 2.8 2.1
IV 2.8 2.6 -0.3 3.6 -0.4 0.7 4.5 2.2
ANNUAL 1.8 2.3 0.5 4.2 1.3 2.3 2.4 2.3
2008 I 2.5 1.9 -0.6 2.9 -1.3 0.3 3.1 1.4
II 2.6 1.3 -1.3 2.7 -1.5 0.1 2.8 1.1
III 1.2 -0.7 -1.9 3.1 -2.0 1.9 2.3 2.0
IV 0.9 -3.0 -4.0 2.6 1.0 1.6 1.6 1.6
ANNUAL 1.8 -0.1 -1.9 2.8 -1.0 1.0 2.4 1.5
2009 I 1.0 -4.8 -5.8 r0.9 r1.1 r-0.1 r5.6 2.2
II r1.9 r-5.5 r-7.2 r0.7 r1.6 r-1.2 r5.9 1.7
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6. September 2, 2009
r=revised Source: Bureau of Labor Statistics
Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
Real
Year Output per Hours Compensa- compensa- Unit
and hour of of all tion per tion per labor
quarter all persons Output persons hour (1) hour (2) costs
--------------------------------------------------------------------------------------------------
Indexes 1992=100
2007 I 176.9 148.0 83.7 r172.9 r121.1 r97.7
II 178.2 149.3 83.8 r172.9 r119.9 r97.0
III 180.1 150.3 83.4 r172.9 r119.2 r96.0
IV 181.6 150.4 82.8 r175.6 r119.4 r96.7
ANNUAL 179.2 149.5 83.4 r173.6 r119.9 r96.9
2008 I 182.8 149.9 82.0 r175.7 r118.1 r96.1
II 181.6 148.0 81.5 r176.9 r117.6 r97.4
III 180.3 144.4 80.1 r178.8 r117.1 r99.2
IV 178.1 137.2 77.0 r183.9 r123.1 r103.2
ANNUAL 180.7 144.9 80.2 r178.7 r118.9 r98.9
2009 I r176.9 r129.0 72.9 r183.7 r123.7 r103.8
II r179.1 r125.7 r70.2 r186.0 r124.9 r103.9
--------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2007 I 3.7 1.8 -1.9 8.2 4.2 4.3
II 3.0 3.4 0.4 0.0 -4.1 -3.0
III 4.4 2.7 -1.6 0.1 -2.2 -4.1
IV 3.3 0.3 -2.9 6.5 0.7 3.1
ANNUAL 3.2 1.3 -1.8 4.3 1.4 1.1
2008 I 2.6 -1.2 -3.7 0.1 -4.3 -2.5
II -2.5 -5.2 -2.7 2.8 -1.6 5.4
III -2.9 -9.3 -6.5 4.3 -1.7 7.5
IV -4.7 -18.4 -14.4 12.0 22.2 17.5
ANNUAL 0.8 -3.1 -3.9 3.0 r-0.8 2.1
2009 I -2.6 r-21.9 -19.8 r-0.4 r2.0 r2.3
II r4.9 r-9.8 r-14.0 r5.1 r3.7 r0.2
--------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2007 I 2.5 0.4 -2.0 4.3 1.9 1.8
II 3.3 1.3 -2.0 4.9 2.1 1.5
III 3.3 1.6 -1.6 4.5 2.1 1.2
IV 3.6 2.0 -1.5 3.6 -0.4 0.0
ANNUAL 3.2 1.3 -1.8 4.3 1.4 1.1
2008 I 3.3 1.3 -2.0 1.6 -2.5 -1.7
II 1.9 -0.9 -2.7 2.3 -1.9 0.4
III 0.1 -3.9 -4.0 3.4 -1.8 3.3
IV -1.9 -8.7 -7.0 4.7 3.1 6.7
ANNUAL 0.8 -3.1 -3.9 3.0 r-0.8 2.1
2009 I -3.2 -13.9 -11.1 r4.6 r4.8 r8.0
II r-1.4 -15.0 r-13.8 r5.2 r6.2 r6.7
--------------------------------------------------------------------------------------------------
See footnotes following Table 6. September 2, 2009
r=revised Source: Bureau of Labor Statistics
Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
Real
Year Output per Hours Compensa- compensa- Unit
and hour of of all tion per tion per labor
quarter all persons Output persons hour (1) hour (2) costs
--------------------------------------------------------------------------------------------------
Indexes 1992=100
2007 I 204.1 180.4 88.4 r168.0 r117.7 r82.3
II 206.9 183.0 88.5 r167.3 r116.0 r80.9
III 209.7 185.0 88.2 r167.5 r115.5 r79.9
IV 212.9 185.7 87.2 r170.1 r115.6 r79.9
ANNUAL 208.4 183.5 88.1 r168.2 r116.2 r80.7
2008 I 213.6 185.3 86.8 r169.5 r113.9 r79.4
II 211.1 181.8 86.1 r171.2 r113.8 r81.1
III 212.2 178.1 83.9 r173.7 r113.8 r81.8
IV 204.3 165.1 80.8 r178.1 r119.2 r87.2
ANNUAL 210.4 177.6 84.4 r173.0 r115.1 r82.2
2009 I r198.6 r150.0 75.6 r178.4 r120.1 r89.8
II r200.1 r143.5 r71.7 r181.8 r122.0 r90.9
--------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2007 I 4.2 1.2 -2.9 r10.1 6.0 5.6
II 5.6 6.0 0.4 -1.7 -5.7 -6.9
III 5.6 4.4 -1.1 0.4 -1.9 -4.9
IV 6.3 1.4 -4.5 6.3 0.5 0.1
ANNUAL 4.0 1.8 -2.1 4.7 1.8 0.7
2008 I 1.2 -0.9 -2.0 -1.4 -5.7 -2.5
II -4.6 -7.3 -2.9 4.1 -0.4 9.1
III 2.2 -7.9 -9.9 r5.9 -0.2 3.6
IV -14.2 -26.2 -14.1 10.5 20.6 28.8
ANNUAL 0.9 -3.3 -4.2 2.8 -1.0 1.9
2009 I r-10.7 r-31.7 -23.5 r0.7 r3.1 r12.8
II r3.1 r-16.4 r-18.9 r7.9 r6.5 r4.6
--------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2007 I 2.6 0.3 -2.3 4.9 2.4 2.2
II 4.1 1.4 -2.6 5.3 2.6 1.2
III 4.0 2.3 -1.6 5.0 2.7 1.0
IV 5.4 3.2 -2.1 3.7 -0.3 -1.6
ANNUAL 4.0 1.8 -2.1 4.7 1.8 0.7
2008 I 4.6 2.7 -1.8 0.9 -3.2 -3.6
II 2.0 -0.7 -2.6 2.3 -1.9 0.3
III 1.2 -3.7 -4.9 3.7 -1.5 2.5
IV -4.1 -11.1 -7.3 4.7 3.1 9.1
ANNUAL 0.9 -3.3 -4.2 2.8 -1.0 1.9
2009 I r-7.0 -19.0 -12.9 r5.3 r5.5 r13.2
II r-5.2 -21.1 r-16.8 r6.2 r7.2 r12.0
--------------------------------------------------------------------------------------------------
See footnotes following Table 6. September 2, 2009
r=revised Source: Bureau of Labor Statistics
Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
Real
Year Output per Hours Compensa- compensa- Unit
and hour of of all tion per tion per labor
quarter all persons Output persons hour (1) hour (2) costs
--------------------------------------------------------------------------------------------------
Indexes 1992=100
2007 I 151.3 115.9 76.6 r179.7 r125.9 r118.8
II 151.4 116.0 76.7 r181.2 r125.6 r119.7
III 152.6 116.3 76.2 r180.9 r124.7 r118.5
IV 152.3 116.0 76.2 r184.1 r125.1 r120.8
ANNUAL 151.9 116.1 76.4 r181.5 r125.3 r119.5
2008 I 154.3 115.6 74.9 r185.2 r124.5 r120.0
II 154.2 114.8 74.4 r185.3 r123.2 r120.2
III 150.1 111.6 74.4 r186.3 r122.1 r124.1
IV 152.3 108.7 71.4 r192.8 r129.1 r126.6
ANNUAL 152.7 112.7 73.8 r187.4 r124.6 r122.7
2009 I r153.1 r105.6 69.0 r192.1 r129.4 r125.5
II r153.9 r104.7 68.0 r192.9 r129.5 r125.3
--------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2007 I 2.4 2.4 0.0 4.9 1.1 2.4
II 0.3 0.7 0.4 3.3 -0.9 3.0
III 3.4 0.8 -2.5 -0.6 -2.9 -3.9
IV -0.9 -0.9 0.0 7.1 1.3 8.0
ANNUAL 2.0 0.9 -1.1 3.6 0.8 1.6
2008 I 5.4 -1.4 -6.5 2.6 -1.9 -2.7
II -0.4 -2.8 -2.5 0.2 r-4.0 0.6
III -10.2 -10.6 -0.5 2.1 -3.8 13.7
IV 6.0 -9.9 -15.0 14.7 25.2 8.2
ANNUAL 0.6 -2.9 -3.4 3.3 -0.6 2.7
2009 I r2.1 r-11.2 -13.0 r-1.5 r0.9 r-3.5
II r2.2 r-3.2 -5.3 r1.5 r0.2 r-0.7
--------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2007 I 2.3 0.7 -1.6 3.4 0.9 1.1
II 2.1 1.2 -0.9 4.1 1.4 2.0
III 2.5 0.9 -1.6 3.4 1.1 0.9
IV 1.3 0.8 -0.5 3.7 -0.4 2.3
ANNUAL 2.0 0.9 -1.1 3.6 0.8 1.6
2008 I 2.0 -0.2 -2.2 3.1 -1.1 1.0
II 1.9 -1.1 -2.9 2.3 -1.9 0.4
III -1.7 -4.0 -2.4 3.0 -2.1 4.7
IV 0.0 -6.3 -6.3 4.8 3.2 4.8
ANNUAL 0.6 -2.9 -3.4 3.3 -0.6 2.7
2009 I -0.8 -8.7 -8.0 r3.7 r3.9 r4.6
II -0.2 r-8.8 -8.6 r4.1 r5.1 r4.2
--------------------------------------------------------------------------------------------------
See footnotes following Table 6. September 2, 2009
r=revised Source: Bureau of Labor Statistics
Table 6. Nonfinancial corporate sector: Productivity, hourly compensation, unit labor costs, unit profits,
and prices, seasonally adjusted
Output Hourly Real Unit Total Unit Implicit
Year per all- compen- hourly Unit non- unit pro- price
and employee Employee sation compen- labor labor costs fits deflator
quarter hour Output hours (1) sation(2) costs costs(6) (7) (8) (4)
----------------------------------------------------------------------------------------------------------
Indexes 1992=100
2007 I 143.5 175.1 122.0 164.2 115.0 114.4 123.1 116.8 171.2 121.8
II 144.5 176.5 122.1 165.2 114.6 114.4 124.9 117.2 171.8 122.2
III 144.1 175.8 122.0 166.2 114.5 115.3 127.4 118.6 155.6 122.0
IV 145.9 178.5 122.3 168.3 114.4 115.3 127.9 118.7 149.9 121.6
ANNUAL 144.5 176.5 122.1 166.0 114.6 114.9 125.8 117.8 162.1 121.9
2008 I 145.0 176.9 122.0 168.6 113.4 116.3 129.1 119.8 133.0 121.0
II 147.4 178.8 121.3 169.7 112.9 115.1 129.2 118.9 134.7 120.4
III 148.6 178.4 120.1 171.8 112.5 115.6 129.8 119.4 145.3 121.8
IV 148.0 174.6 117.9 173.7 116.3 117.3 134.1 121.8 129.5 122.5
ANNUAL 147.2 177.2 120.3 170.9 113.7 116.1 130.5 120.0 135.7 121.4
2009 I r145.3 r166.6 114.7 r171.6 r115.6 r118.1 r139.1 r123.8 r127.5 r124.1
II 147.5 165.5 112.2 172.4 115.7 116.9 138.7 122.7 134.2 123.8
----------------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2007 I -0.2 0.2 0.4 4.3 0.4 4.5 7.5 5.3 -10.2 3.2
II 2.8 3.2 0.4 2.5 -1.6 -0.3 5.8 1.4 1.5 1.4
III -1.1 -1.5 -0.4 2.3 -0.1 3.4 8.2 4.8 -32.7 -0.7
IV 5.3 6.2 0.9 5.3 -0.4 0.0 1.5 0.5 -13.8 -1.3
ANNUAL 1.0 1.7 0.7 3.6 0.8 2.6 5.8 3.5 -9.9 1.7
2008 I -2.7 -3.6 -1.0 0.7 -3.7 3.5 3.9 3.6 -38.0 -1.9
II 6.9 4.4 -2.4 2.6 -1.8 -4.0 0.5 -2.7 5.0 -2.0
III 3.2 -0.8 -3.9 4.9 -1.2 1.6 1.8 1.6 35.5 4.8
IV -1.4 -8.3 -6.9 4.6 14.1 6.1 13.9 8.3 -37.0 2.4
ANNUAL 1.9 0.4 -1.5 3.0 -0.8 1.1 3.7 1.8 -16.3 -0.4
2009 I r-7.3 r-17.1 -10.5 r-4.7 r-2.4 r2.9 r15.8 r6.6 r-5.8 5.3
II 6.2 -2.6 -8.3 1.8 0.4 -4.2 -1.3 -3.3 22.5 -1.1
----------------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2007 I 0.3 1.4 1.1 3.3 0.8 2.9 5.5 3.7 -3.0 2.8
II 1.7 2.6 0.9 3.7 1.0 2.0 5.0 2.8 -2.2 2.1
III 0.5 0.9 0.4 4.0 1.6 3.5 7.0 4.5 -18.7 1.1
IV 1.6 2.0 0.3 3.6 -0.4 1.9 5.7 3.0 -14.7 0.6
ANNUAL 1.0 1.7 0.7 3.6 0.8 2.6 5.8 3.5 -9.9 1.7
2008 I 1.0 1.0 0.0 2.7 -1.5 1.7 4.8 2.6 -22.3 -0.6
II 2.0 1.3 -0.7 2.7 -1.5 0.7 3.5 1.5 -21.6 -1.5
III 3.1 1.5 -1.6 3.4 -1.8 0.2 1.9 0.7 -6.6 -0.1
IV 1.4 -2.2 -3.6 3.2 1.6 1.7 4.9 2.6 -13.6 0.8
ANNUAL 1.9 0.4 -1.5 3.0 -0.8 1.1 3.7 1.8 -16.3 -0.4
2009 I r0.2 r-5.8 -6.0 r1.8 r2.0 r1.6 r7.7 3.4 r-4.1 2.6
II 0.0 -7.4 -7.4 1.6 2.5 1.5 7.3 3.2 -0.4 2.8
----------------------------------------------------------------------------------------------------------
See footnotes following Table 6. September 2, 2009
r=revised Source: Bureau of Labor Statistics
SOURCES: Output data are from the Bureau of Economic Analysis and the
Census Bureau of the U.S. Department of Commerce; the Bureau of Labor
Statistics, U.S. Department of Labor; and the Federal Reserve Board.
Compensation and hours data are from the Bureau of Labor Statistics and
the Bureau of Economic Analysis.
RELIABILITY: Productivity and cost measures are regularly revised as
more complete information becomes available. The measures are first
published within 40 days of the close of the reference period; revisions
appear 30 days later, and second revisions after an additional 60 days.
In the business sector, the third publication (second revision) of a
quarterly index of output per hour of all persons has differed from the
initial value by between -1.5 and +1.4 index points approximately 95
percent of the time. This interval is based on the performance of this
measure between the fourth quarter of 1995 and the first quarter of 2009.
Footnotes, Tables 1-6
(1) Wages and salaries of employees plus employers' contributions for
social insurance and private benefit plans. Except for nonfinancial
corporations, where there are no self-employed, data also include an
estimate of wages, salaries, and supplemental payments for the self-
employed.
(2) The change for recent quarters is based on the Consumer Price Index
for all urban consumers (CPI-U). The trend from 1978-2008 is based on
the Consumer Price Index research series (CPI-U-RS).
(3) Unit nonlabor payments include profits, consumption of fixed
capital, taxes on production and imports less subsidies, net interest and
miscellaneous payments, business current transfer payments, rental income
of persons, and the current surplus of government enterprises.
(4) Current dollar output divided by the output index.
(5) Quarterly changes: Percent change compounded at annual rate is
calculated using index numbers to three decimal places. Indexes
published in the news release are rounded to one decimal place for
convenience. Annual changes: Percent change is calculated using annual
average indexes to three decimal places.
(6) Unit nonlabor costs include consumption of fixed capital, taxes on
production and imports less subsidies, net interest and miscellaneous
payments, and business current transfer payments.
(7) Total unit costs are the sum of unit labor and nonlabor costs.
(8) Unit profits include corporate profits before tax with inventory
valuation and capital consumption adjustments.
Appendix table 1.
Manufacturing sector: Productivity, hourly compensation, and unit labor costs
Indexes 1992=100
Real
Output per Hours Compensa- compensa- Unit
hour of of all tion per tion per labor
Year all persons Output persons hour (1) hour (2) costs
-----------------------------------------------------------------------------------------------
1987 89.1 92.4 103.8 r80.6 r97.2 r90.5
1988 90.9 97.2 106.9 r83.5 r97.1 r91.8
1989 91.9 98.8 107.6 r86.0 r95.9 r93.6
1990 93.9 98.5 104.9 r90.1 r95.7 r96.0
1991 96.3 96.8 100.5 r95.5 r97.9 r99.1
1992 100.0 100.0 100.0 100.0 100.0 100.0
1993 102.6 103.9 101.3 r102.3 r99.8 r99.7
1994 106.2 110.1 103.7 r104.8 r100.1 r98.7
1995 111.0 115.9 104.4 r106.5 r99.3 r95.9
1996 115.0 119.8 104.2 r108.3 r98.4 r94.1
1997 121.3 128.7 106.0 r110.9 r98.7 r91.4
1998 127.9 135.3 105.8 r117.8 r103.4 r92.1
1999 133.7 140.4 105.1 r123.0 r105.7 r92.0
2000 139.1 144.2 103.7 r132.5 r110.2 r95.3
2001 141.2 136.9 96.9 r137.5 r111.2 r97.4
2002 151.0 136.0 90.1 r145.1 r115.5 r96.1
2003 160.4 137.3 85.6 r156.7 r122.0 r97.7
2004 164.0 139.7 85.2 r157.9 r119.7 r96.3
2005 171.9 144.8 84.3 r163.2 r119.7 r94.9
2006 173.7 147.5 84.9 r166.4 r118.2 r95.8
2007 179.2 149.5 83.4 r173.6 r119.9 r96.9
2008 180.7 144.9 80.2 r178.7 r118.9 r98.9
----------------------------------------------------------------------------------------------
See footnotes following Table 6. September 2, 2009
r=revised Source: Bureau of Labor Statistics
Appendix table 2.
Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs
Indexes 1992=100
Real
Output per Hours Compensa- compensa- Unit
hour of of all tion per tion per labor
Year all persons Output persons hour (1) hour (2) costs
-----------------------------------------------------------------------------------------------
1987 88.5 94.2 106.5 80.7 97.3 r91.1
1988 90.4 100.0 110.6 82.9 96.5 91.7
1989 91.1 101.1 110.9 85.4 95.2 93.7
1990 92.9 99.8 107.4 89.1 94.7 95.9
1991 94.6 96.0 101.4 94.8 97.2 r100.2
1992 100.0 100.0 100.0 100.0 100.0 100.0
1993 103.9 105.4 101.4 r102.0 99.5 98.1
1994 109.1 114.2 104.7 104.5 99.9 95.8
1995 115.9 123.3 106.3 105.3 r98.2 90.8
1996 122.1 131.0 107.3 106.4 96.7 87.2
1997 130.5 144.1 110.4 108.3 96.3 82.9
1998 140.6 156.1 111.0 115.3 101.1 82.0
1999 150.7 166.5 110.5 120.3 103.4 79.8
2000 158.1 173.6 109.8 r129.8 107.9 82.1
2001 159.0 162.1 101.9 r133.6 r108.0 r84.0
2002 171.0 159.9 93.5 r140.1 r111.5 r82.0
2003 183.2 162.2 88.5 r153.0 r119.1 r83.5
2004 186.3 165.9 89.1 r152.5 r115.6 r81.9
2005 196.2 174.5 89.0 r157.2 r115.3 r80.2
2006 200.4 180.3 90.0 r160.6 r114.1 r80.2
2007 208.4 183.5 88.1 r168.2 r116.2 r80.7
2008 210.4 177.6 84.4 r173.0 r115.1 r82.2
----------------------------------------------------------------------------------------------
See footnotes following Table 6. September 2, 2009
r=revised Source: Bureau of Labor Statistics
Appendix table 3.
Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs
Indexes 1992=100
Real
Output per Hours Compensa- compensa- Unit
hour of of all tion per tion per labor
Year all persons Output persons hour (1) hour (2) costs
-----------------------------------------------------------------------------------------------
1987 91.4 91.1 99.7 79.8 96.3 87.4
1988 93.2 94.5 101.4 83.6 97.2 89.7
1989 94.0 96.4 102.5 86.3 96.3 r91.8
1990 96.0 97.1 101.1 91.4 97.1 r95.3
1991 98.3 97.4 99.1 96.4 98.9 98.1
1992 100.0 100.0 100.0 100.0 100.0 100.0
1993 101.2 102.4 101.2 102.7 100.3 101.6
1994 103.5 105.7 102.1 105.0 100.4 101.5
1995 106.2 107.7 101.5 108.1 100.9 101.9
1996 108.4 107.8 99.4 110.8 100.7 102.3
1997 112.8 112.2 99.5 114.7 102.1 r101.7
1998 115.8 113.4 97.9 121.0 106.2 104.5
1999 116.9 113.3 96.9 r126.3 108.5 108.0
2000 120.7 114.1 94.5 135.4 112.6 112.2
2001 123.4 110.4 89.4 r143.2 r115.9 r116.0
2002 130.5 110.7 84.8 r153.2 r121.9 r117.4
2003 136.7 111.1 81.3 r162.2 r126.3 r118.6
2004 141.7 112.4 79.4 r166.5 r126.3 r117.5
2005 148.6 114.7 77.2 r172.5 r126.5 r116.1
2006 148.9 115.1 77.3 r175.1 r124.3 r117.6
2007 151.9 116.1 76.4 r181.5 r125.3 r119.5
2008 152.7 112.7 73.8 r187.4 r124.6 r122.7
----------------------------------------------------------------------------------------------
See footnotes following Table 6. September 2, 2009
r=revised Source: Bureau of Labor Statistics
United States Department of Labor
