Transmission of material in this release is embargoed until USDL-10-1211
8:30 a.m. (EDT) Thursday, September 2, 2010
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 2010, Revised
Nonfarm business sector labor productivity decreased at a 1.8 percent
annual rate during the second quarter of 2010, the U.S. Bureau of Labor
Statistics reported today as hours increased 3.5 percent and output
increased 1.6 percent. (All quarterly percent changes in this release are
seasonally adjusted annual rates.) The second-quarter gain in hours worked
was the largest since the first quarter of 2006. From the second quarter
of 2009 to the second quarter of 2010, productivity and output both grew
3.7 percent and hours were unchanged (tables A and 2). Nonfarm business
productivity increased at an average annual rate of 2.5 percent from 2000
through 2009.
Labor productivity, or output per hour, is calculated by dividing an index
of real output by an index of hours worked of all persons, including
employees, proprietors, and unpaid family workers.
Unit labor costs in nonfarm businesses rose 1.1 percent in the second
quarter of 2010, as the 1.8 percent decline in productivity was partially
offset by a 0.7 percent decline in hourly compensation. Unit labor costs
decreased 2.8 percent over the last four quarters, as output per hour
increased faster than 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.
Manufacturing sector productivity grew 4.1 percent in the second quarter
of 2010, as output rose 8.4 percent and hours worked increased 4.1
percent. Productivity performance differed between the two manufacturing
subsectors. In durable manufacturing, output per hour increased 9.9
percent as output grew 13.6 percent and hours rose 3.4 percent. In
nondurable goods industries, productivity fell 2.4 percent as output grew
2.8 percent but hours grew 5.3 percent (tables A, 3, 4 and 5). Total
manufacturing productivity increased 7.5 percent over the last four
quarters and 3.0 percent per year on average from 2000 through 2009.
Unit labor costs in manufacturing declined 5.9 percent in the second
quarter of 2010 due to both the 4.1 percent increase in productivity and a
2.0 percent decline in hourly compensation (tables A and 3). Unit labor
costs fell 7.3 percent over the last four quarters, the largest four-
quarter decrease since the series began in 1988.
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.
Preliminary data for the second quarter of 2010 for the nonfinancial
corporate sector also were released today. Productivity declined 0.5
percent as output and hours increased 4.0 percent and 4.5 percent,
respectively (tables C and 6).
Revised measures
Tables B and C present previous and revised productivity and related
measures for the major sectors: nonfarm business, business and
manufacturing, as well as nonfinancial corporations.
In the second quarter of 2010, nonfarm business sector productivity was
revised down and unit labor costs were revised up as a result of a
downward revision to output. In the manufacturing sector, productivity was
revised down to 4.1 percent from 4.5 percent; hours were revised up more
than output. Unit labor costs did not fall as fast as previously reported
due to the downward revision to productivity.
In the first quarter of 2010, nonfarm business sector productivity was not
revised, and manufacturing sector productivity was revised upwards. In
both sectors, unit labor costs fell more than previously reported as
hourly compensation was revised downward.
Nonfinancial corporate sector productivity growth in the first quarter of
2010 was revised down to 8.6 percent from 9.1 percent reflecting a
downward revision to output. Unit labor costs were revised down as hourly
compensation was revised down more than productivity.
___________
The preliminary Productivity and Costs press release for third quarter
2010 is scheduled to be released on Thursday, November 4, 2010 at 8:30
a.m. (EDT).
======================================================================================================
Table A. Revised second-quarter 2010 measures: percent change from previous quarter, annual rate
(Q to Q) and from same quarter a year ago (Y to Y)
Sector Nonfarm Durable Nondurable
Business Business Manufacturing Manufacturing Manufacturing
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 -1.8 3.7 -1.9 3.7 4.1 7.5 9.9 11.4 -2.4 3.2
Output 1.6 3.7 1.7 3.7 8.4 8.4 13.6 12.0 2.8 4.5
Hours 3.5 0.0 3.7 0.0 4.1 0.8 3.4 0.5 5.3 1.2
Hourly
compensation -0.7 0.8 -0.8 0.8 -2.0 -0.3 -1.9 -0.5 -2.1 0.1
Real hourly
compensation 0.0 -1.0 -0.1 -1.0 -1.3 -2.1 -1.2 -2.3 -1.4 -1.6
Unit labor
costs 1.1 -2.8 1.1 -2.8 -5.9 -7.3 -10.7 -10.7 0.3 -3.0
======================================================================================================
Table B. Revised and previous measures: second quarter and first quarter 2010
Sector Nonfarm Durable Nondurable
Business Business Manufacturing Manufacturing Manufacturing
Revised Previous Revised Previous Revised Previous Revised Previous Revised Previous
------------------------------------------------------------------------------------------------------
Percent change, annual rate, second quarter 2010
Productivity -1.8 -0.9 -1.9 -1.1 4.1 4.5 9.9 11.2 -2.4 -2.8
Output 1.6 2.6 1.7 2.6 8.4 8.3 13.6 14.1 2.8 2.2
Hours 3.5 3.6 3.7 3.8 4.1 3.6 3.4 2.7 5.3 5.1
Hourly
compensation -0.7 -0.7 -0.8 -0.9 -2.0 -1.9 -1.9 -1.5 -2.1 -2.4
Real hourly
compensation 0.0 0.0 -0.1 -0.2 -1.3 -1.2 -1.2 -0.7 -1.4 -1.7
Unit labor
costs 1.1 0.2 1.1 0.2 -5.9 -6.1 -10.7 -11.4 0.3 0.5
Percent change, annual rate, first quarter 2010
Productivity 3.9 3.9 3.5 3.5 1.6 1.2 2.4 2.0 1.4 1.0
Output 5.0 5.0 5.0 5.0 7.0 7.0 9.3 9.2 4.6 4.6
Hours 1.1 1.1 1.4 1.4 5.3 5.7 6.8 7.1 3.1 3.5
Hourly
compensation -0.9 0.0 -1.1 -0.2 -6.5 -5.0 -7.8 -5.8 -4.4 -4.0
Real hourly
compensation -2.4 -1.5 -2.6 -1.7 -7.9 -6.4 -9.2 -7.2 -5.8 -5.4
Unit labor
costs -4.6 -3.7 -4.5 -3.6 -8.0 -6.2 -10.0 -7.6 -5.7 -5.0
======================================================================================================
Table C. Nonfinancial corporations measures: preliminary second quarter 2010 and revised first
quarter 2010
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 2010
Q to Q -0.5 4.0 4.5 -1.0 -0.3 -0.5 31.2 2.7
Y to Y 6.4 6.7 0.3 0.9 -0.8 -5.1 37.9 -1.5
Percent change, annual rate, first quarter 2010
Revised 8.6 10.8 2.1 -0.9 -2.3 -8.7 64.6 -2.1
Previous 9.1 11.4 2.1 0.0 -1.4 -8.4 63.7 -2.1
======================================================================================================
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 75
percent of the value of GDP in 2009. Nonfarm business, which excludes
farming, accounted for about 74 percent of GDP in 2009.
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 47 percent of the value of GDP in 2009.
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: 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 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 2005=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
Output Compen- compen- Unit Implicit
Year per hour Hours sation sation Unit nonlabor price
and of all of all per hour per hour labor payments deflator
quarter persons Output persons (1) (2) costs (3) (4)
---------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2010 II -1.9 r 1.7 r 3.7 r -0.8 r -0.1 r 1.1 r 4.3 r 2.5 r
I 3.5 5.0 1.4 -1.1 r -2.6 r -4.5 r 9.6 r 1.2
2009 ANNUAL 3.5 -3.7 -6.9 1.8 2.2 -1.6 3.8 0.5
2009 IV 6.1 6.5 0.3 1.5 -1.2 -4.4 5.2 -0.5
III 7.2 1.6 -5.3 3.8 0.0 -3.2 7.4 0.9
II 8.3 -0.3 -7.9 9.0 7.1 0.6 -2.9 -0.8
I 3.5 -6.2 -9.4 -3.6 -1.5 -6.9 13.6 0.8
2008 ANNUAL 1.1 -0.9 -2.0 3.2 -0.6 2.1 1.4 1.8
2008 IV -0.3 -9.3 -9.0 0.8 11.0 1.1 -7.9 -2.6
III -1.1 -6.1 -5.0 3.6 -2.6 4.8 5.7 5.1
II 1.2 -0.6 -1.8 0.1 -4.8 -1.1 12.3 4.0
I -0.9 -2.0 -1.1 4.5 -0.3 5.4 -5.7 0.9
---------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2010 II 3.7 r 3.7 r 0.0 0.8 r -1.0 r -2.8 6.6 r 1.0
I 6.3 3.2 -2.9 3.2 r 0.8 r -2.9 r 4.7 r 0.2
2009 ANNUAL 3.5 -3.7 -6.9 1.8 2.2 -1.6 3.8 0.5
2009 IV 6.3 0.3 -5.6 2.5 1.0 -3.5 5.6 0.1
III 4.6 -3.7 -7.9 2.4 4.0 -2.2 2.2 -0.4
II 2.5 -5.5 -7.8 2.3 3.3 -0.2 1.8 0.6
I 0.8 -5.6 -6.3 0.2 0.3 -0.6 5.6 1.8
2008 ANNUAL 1.1 -0.9 -2.0 3.2 -0.6 2.1 1.4 1.8
2008 IV -0.3 -4.5 -4.3 2.2 0.6 2.5 0.8 1.8
III 0.5 -1.5 -2.0 3.4 -1.8 2.8 1.9 2.5
II 1.9 0.6 -1.2 3.3 -0.9 1.4 1.8 1.6
I 2.4 1.7 -0.6 3.9 -0.3 1.5 1.3 1.4
---------------------------------------------------------------------------------------------------
Indexes 2005=100
2010 II 110.4 r 103.4 r 93.7 r 114.5 r 102.9 r 103.7 r 117.3 r 109.1 r
I 111.0 103.0 92.8 114.7 r 102.9 r 103.4 r 116.0 r 108.4
2009 ANNUAL 107.3 100.4 93.6 113.6 103.4 105.9 111.6 108.1
2009 IV 110.0 101.7 92.5 115.1 103.6 104.6 113.4 108.1
III 108.4 100.1 92.4 114.6 103.9 105.8 112.0 108.2
II 106.5 99.8 93.7 113.6 103.9 106.6 110.0 108.0
I 104.4 99.8 95.6 111.2 102.1 106.5 110.8 108.2
2008 ANNUAL 103.6 104.2 100.5 111.5 101.1 107.6 107.5 107.6
2008 IV 103.5 101.4 98.0 112.2 102.5 108.4 107.3 108.0
III 103.6 103.9 100.3 112.0 99.9 108.1 109.6 108.7
II 103.9 105.6 101.6 111.0 100.6 106.8 108.1 107.3
I 103.6 105.7 102.1 111.0 101.8 107.1 105.0 106.3
---------------------------------------------------------------------------------------------------
See footnotes following Table 6. September 2, 2010
r=revised Source: Bureau of Labor Statistics
Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs, and prices,
seasonally adjusted
Real
Output Compen- compen- Unit Implicit
Year per hour Hours sation sation Unit nonlabor price
and of all of all per hour per hour labor payments deflator
quarter persons Output persons (1) (2) costs (3) (4)
---------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2010 II -1.8 r 1.6 r 3.5 r -0.7 0.0 1.1 r 4.7 r 2.6 r
I 3.9 5.0 1.1 -0.9 r -2.4 r -4.6 r 9.8 r 1.2
2009 ANNUAL 3.5 -3.8 -7.0 1.9 2.2 -1.6 4.6 0.8
2009 IV 6.0 6.7 0.7 1.5 -1.1 -4.2 3.5 -1.1
III 7.0 1.4 -5.2 3.4 -0.3 -3.3 8.1 1.1
II 8.4 -0.2 -7.9 9.1 7.2 0.6 -2.9 -0.8
I 3.4 -6.4 -9.5 -3.7 -1.6 -6.9 15.4 1.4
2008 ANNUAL 1.0 -1.1 -2.1 3.3 -0.5 2.2 1.2 1.8
2008 IV -0.1 -9.5 -9.5 1.1 11.3 1.2 -6.5 -1.9
III -1.3 -6.2 -4.9 3.7 -2.6 5.0 6.0 5.4
II 1.2 -0.3 -1.5 -0.2 -5.1 -1.4 13.6 4.2
I -1.4 -2.5 -1.2 4.7 0.0 6.2 -7.0 0.8
---------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2010 II 3.7 r 3.7 r 0.0 0.8 r -1.0 r -2.8 6.5 r 0.9
I 6.3 3.2 -2.9 3.2 r 0.8 r -2.9 r 4.5 r 0.1
2009 ANNUAL 3.5 -3.8 -7.0 1.9 2.2 -1.6 4.6 0.8
2009 IV 6.2 0.3 -5.6 2.5 1.0 -3.5 5.8 0.2
III 4.6 -3.8 -8.0 2.4 4.0 -2.2 3.2 0.0
II 2.5 -5.6 -8.0 2.4 3.4 -0.1 2.7 1.0
I 0.8 -5.7 -6.4 0.2 0.3 -0.6 6.8 2.2
2008 ANNUAL 1.0 -1.1 -2.1 3.3 -0.5 2.2 1.2 1.8
2008 IV -0.4 -4.7 -4.3 2.3 0.7 2.7 1.2 2.1
III 0.5 -1.7 -2.2 3.6 -1.6 3.1 1.6 2.5
II 1.9 0.5 -1.3 3.5 -0.8 1.6 1.4 1.5
I 2.2 1.6 -0.6 3.8 -0.3 1.6 0.7 1.2
---------------------------------------------------------------------------------------------------
Indexes 2005=100
2010 II 110.4 r 103.3 r 93.6 r 114.5 r 102.9 r 103.7 r 117.6 r 109.2 r
I 110.9 102.9 92.8 114.7 r 102.9 r 103.4 r 116.2 r 108.5
2009 ANNUAL 107.2 100.3 93.5 113.5 103.3 105.9 111.9 108.3
2009 IV 109.9 101.7 92.5 115.0 103.5 104.7 113.5 108.2
III 108.3 100.0 92.4 114.5 103.8 105.8 112.6 108.5
II 106.5 99.7 93.6 113.6 103.9 106.7 110.4 108.2
I 104.3 99.7 95.6 111.1 102.1 106.5 111.2 108.4
2008 ANNUAL 103.6 104.2 100.6 111.5 101.1 107.6 107.0 107.4
2008 IV 103.5 101.4 98.0 112.2 102.5 108.4 107.3 108.0
III 103.5 104.0 100.5 111.9 99.8 108.1 109.1 108.5
II 103.8 105.6 101.7 110.9 100.5 106.8 107.5 107.1
I 103.5 105.7 102.1 111.0 101.8 107.2 104.2 106.0
---------------------------------------------------------------------------------------------------
See footnotes following Table 6. September 2, 2010
r=revised Source: Bureau of Labor Statistics
Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
Real
Output Compen- compen-
Year per hour Hours sation sation Unit
and of all of all per hour per hour labor
quarter persons Output persons (1) (2) costs
---------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2010 II 4.1 r 8.4 r 4.1 r -2.0 r -1.3 r -5.9 r
I 1.6 r 7.0 5.3 r -6.5 r -7.9 r -8.0 r
2009 ANNUAL 2.0 -10.9 -12.6 5.2 5.6 3.2
2009 IV 8.1 7.2 -0.8 4.4 1.6 -3.5
III 16.9 10.9 -5.1 3.3 -0.4 -11.6
II 6.2 -8.5 -13.8 6.5 4.6 0.3
I -1.8 -20.9 -19.4 4.0 6.3 5.9
2008 ANNUAL -0.7 -4.7 -4.0 4.0 0.1 4.6
2008 IV -2.6 -18.3 -16.1 7.0 17.9 9.9
III -1.5 -10.4 -9.0 6.3 -0.1 7.9
II -6.7 -7.9 -1.4 3.4 -1.7 10.7
I -0.7 -2.7 -2.0 2.2 -2.4 2.9
---------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2010 II 7.5 8.4 r 0.8 -0.3 r -2.1 r -7.3 r
I 8.1 r 3.9 -3.9 r 1.8 r -0.6 r -5.8 r
2009 ANNUAL 2.0 -10.9 -12.6 5.2 5.6 3.2
2009 IV 7.1 -3.7 -10.1 4.5 3.0 -2.4
III 4.4 -10.0 -13.8 5.2 6.9 0.8
II 0.0 -14.7 -14.7 5.9 7.0 5.9
I -3.2 -14.5 -11.8 5.2 5.3 8.6
2008 ANNUAL -0.7 -4.7 -4.0 4.0 0.1 4.6
2008 IV -2.9 -10.0 -7.3 4.7 3.1 7.8
III -1.4 -5.6 -4.3 5.1 -0.2 6.6
II -0.3 -3.0 -2.7 3.8 -0.5 4.1
I 2.0 0.0 -2.0 2.5 -1.7 0.4
---------------------------------------------------------------------------------------------------
Indexes 2005=100
2010 II 111.2 r 92.8 r 83.5 r 114.6 r 103.0 r 103.0 r
I 110.1 r 91.0 r 82.7 r 115.2 r 103.3 r 104.6 r
2009 ANNUAL 105.6 87.7 83.0 115.2 104.9 109.2
2009 IV 109.6 89.5 81.6 117.1 105.4 106.8
III 107.5 87.9 81.8 115.9 105.0 107.8
II 103.4 85.7 82.8 114.9 105.1 111.1
I 101.9 87.6 86.0 113.1 103.9 111.1
2008 ANNUAL 103.5 98.4 95.0 109.5 99.3 105.8
2008 IV 102.3 92.9 90.7 112.0 102.4 109.5
III 103.0 97.7 94.8 110.1 98.2 106.9
II 103.4 100.4 97.1 108.5 98.3 104.9
I 105.2 102.5 97.4 107.6 98.7 102.3
---------------------------------------------------------------------------------------------------
See footnotes following Table 6. September 2, 2010
r=revised Source: Bureau of Labor Statistics
Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
Real
Output Compen- compen-
Year per hour Hours sation sation Unit
and of all of all per hour per hour labor
quarter persons Output persons (1) (2) costs
---------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2010 II 9.9 r 13.6 r 3.4 r -1.9 r -1.2 r -10.7 r
I 2.4 r 9.3 r 6.8 r -7.8 r -9.2 r -10.0 r
2009 ANNUAL 0.2 -14.9 -15.1 5.8 6.2 5.5
2009 IV 8.7 8.0 -0.7 5.3 2.5 -3.1
III 25.8 17.2 -6.8 2.9 -0.8 -18.2
II 5.3 -14.3 -18.6 11.6 9.6 6.0
I -7.5 -28.8 -23.0 2.1 4.4 10.4
2008 ANNUAL 0.1 -4.1 -4.2 3.5 -0.3 3.4
2008 IV -9.9 -24.2 -15.9 6.6 17.4 18.3
III 2.8 -10.2 -12.7 7.3 0.9 4.4
II -8.1 -8.8 -0.8 3.8 -1.2 13.0
I -0.3 -0.2 0.1 -0.3 -4.8 0.0
---------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2010 II 11.4 r 12.0 r 0.5 r -0.5 r -2.3 r -10.7 r
I 10.2 r 4.3 -5.3 r 2.7 r 0.3 r -6.8 r
2009 ANNUAL 0.2 -14.9 -15.1 5.8 6.2 5.5
2009 IV 7.4 -6.3 -12.7 5.4 3.9 -1.9
III 2.5 -14.2 -16.3 5.7 7.5 3.1
II -2.5 -19.7 -17.6 6.8 7.9 9.6
I -5.8 -18.5 -13.5 4.9 5.1 11.4
2008 ANNUAL 0.1 -4.1 -4.2 3.5 -0.3 3.4
2008 IV -4.0 -11.3 -7.6 4.3 2.7 8.7
III 0.3 -4.8 -5.1 4.9 -0.4 4.6
II 0.3 -2.2 -2.5 3.5 -0.7 3.2
I 3.8 1.9 -1.9 1.6 -2.5 -2.1
---------------------------------------------------------------------------------------------------
Indexes 2005=100
2010 II 115.3 r 93.0 r 80.6 r 115.6 r 103.9 r 100.3 r
I 112.6 r 90.1 r 80.0 r 116.2 r 104.2 r 103.2 r
2009 ANNUAL 106.8 86.0 80.5 116.2 105.8 108.8
2009 IV 112.0 88.1 78.7 118.6 106.8 105.9
III 109.7 86.4 78.8 117.1 106.1 106.8
II 103.5 83.0 80.2 116.2 106.3 112.2
I 102.2 86.3 84.4 113.1 103.9 110.6
2008 ANNUAL 106.5 101.0 94.8 109.9 99.6 103.2
2008 IV 104.2 94.0 90.2 112.5 102.8 107.9
III 107.0 100.7 94.1 110.7 98.7 103.5
II 106.2 103.4 97.4 108.8 98.5 102.4
I 108.5 105.9 97.6 107.8 98.8 99.3
---------------------------------------------------------------------------------------------------
See footnotes following Table 6. September 2, 2010
r=revised Source: Bureau of Labor Statistics
Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
Real
Output Compen- compen-
Year per hour Hours sation sation Unit
and of all of all per hour per hour labor
quarter persons Output persons (1) (2) costs
---------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2010 II -2.4 r 2.8 r 5.3 r -2.1 r -1.4 r 0.3 r
I 1.4 r 4.6 3.1 r -4.4 r -5.8 r -5.7 r
2009 ANNUAL 2.5 -6.0 -8.3 4.8 5.2 2.3
2009 IV 7.5 6.3 -1.2 2.7 0.0 -4.5
III 6.7 4.3 -2.2 4.5 0.8 -2.0
II 4.1 -1.5 -5.4 -1.1 -2.8 -5.0
I 2.5 -10.7 -12.9 8.4 10.8 5.7
2008 ANNUAL -1.6 -5.3 -3.7 4.9 1.0 6.6
2008 IV 7.0 -10.7 -16.6 7.8 18.7 0.8
III -8.5 -10.6 -2.3 5.2 -1.1 15.0
II -4.7 -6.8 -2.3 2.3 -2.7 7.3
I -0.1 -5.6 -5.5 6.9 2.1 7.0
---------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2010 II 3.2 r 4.5 r 1.2 r 0.1 -1.6 -3.0 r
I 4.9 r 3.4 -1.5 r 0.4 r -2.0 r -4.3 r
2009 ANNUAL 2.5 -6.0 -8.3 4.8 5.2 2.3
2009 IV 5.2 -0.6 -5.5 3.6 2.0 -1.6
III 5.1 -4.9 -9.4 4.8 6.5 -0.2
II 1.1 -8.5 -9.5 5.0 6.0 3.9
I -1.1 -9.7 -8.7 5.9 6.1 7.1
2008 ANNUAL -1.6 -5.3 -3.7 4.9 1.0 6.6
2008 IV -1.7 -8.5 -6.9 5.5 3.9 7.4
III -3.9 -6.6 -2.8 5.7 0.4 10.0
II -1.0 -4.0 -3.0 4.3 0.0 5.3
I 0.1 -2.1 -2.2 4.1 -0.1 4.0
---------------------------------------------------------------------------------------------------
Indexes 2005=100
2010 II 105.1 r 93.0 r 88.5 r 113.4 r 101.9 r 107.8 r
I 105.8 r 92.4 r 87.4 r 114.0 r 102.2 r 107.8 r
2009 ANNUAL 102.9 89.9 87.4 114.1 103.9 111.0
2009 IV 105.4 91.4 86.7 115.3 103.8 109.4
III 103.5 90.0 86.9 114.5 103.8 110.6
II 101.8 89.0 87.4 113.3 103.6 111.2
I 100.8 89.4 88.7 113.6 104.3 112.7
2008 ANNUAL 100.3 95.7 95.4 108.9 98.7 108.5
2008 IV 100.2 91.9 91.8 111.3 101.7 111.1
III 98.5 94.6 96.0 109.2 97.4 110.9
II 100.7 97.3 96.6 107.9 97.7 107.1
I 101.9 99.0 97.1 107.2 98.4 105.2
---------------------------------------------------------------------------------------------------
See footnotes following Table 6. September 2, 2010
r=revised Source: Bureau of Labor Statistics
Table 6. Nonfinancial corporate sector: Productivity, hourly compensation, unit labor costs, unit profits,
and prices, seasonally adjusted
Real Unit
Output Hourly hourly non- Total Unit Implicit
Year per all- compen- compen- Unit labor unit pro- price
and employee Employee sation sation labor costs cost fits deflator
quarter hour Output hours (1) (2) costs (6) (7) (8) (4)
---------------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2010 II -0.5 4.0 4.5 -1.0 -0.3 -0.5 -2.0 -1.0 31.2 2.7
I 8.6 r 10.8 r 2.1 -0.9 r -2.3 r -8.7 r -8.4 r -8.6 r 64.6 r -2.1
2009 ANNUAL 1.6 -6.0 -7.5 2.2 2.6 0.6 2.7 1.2 -2.5 0.8
2009 IV 12.5 12.9 0.3 1.4 -1.3 -9.9 -8.1 -9.4 38.2 -5.3
III 5.3 -0.4 -5.4 4.2 0.5 -1.0 -7.8 -3.0 21.2 -0.9
II 3.4 -5.8 -8.9 6.9 5.1 3.4 -2.6 1.6 -21.4 -0.9
I -5.2 -15.6 -11.0 -3.5 -1.4 1.7 9.0 3.8 -4.2 3.0
2008 ANNUAL 2.7 0.9 -1.7 3.5 -0.3 0.8 3.8 1.6 -14.2 -0.3
2008 IV 0.4 -8.1 -8.4 3.0 13.5 2.7 11.1 5.1 -36.5 -0.4
III 5.9 0.3 -5.3 4.5 -1.8 -1.4 2.3 -0.3 86.7 6.5
II 1.7 -0.4 -2.1 1.9 -3.1 0.2 5.0 1.5 -9.2 0.4
I 0.2 -0.2 -0.4 2.8 -1.8 2.7 2.9 2.7 -35.0 -2.2
---------------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2010 II 6.4 6.7 0.3 0.9 -0.8 -5.1 -6.6 -5.6 37.9 -1.5
I 7.4 r 4.1 r -3.1 2.9 r 0.4 r -4.2 r -6.7 r -5.0 21.3 r -2.4
2009 ANNUAL 1.6 -6.0 -7.5 2.2 2.6 0.6 2.7 1.2 -2.5 0.8
2009 IV 3.8 -2.7 -6.3 2.2 0.7 -1.6 -2.6 -1.9 6.0 -1.1
III 0.9 -7.6 -8.4 2.6 4.3 1.7 2.1 1.8 -12.7 0.2
II 1.0 -7.5 -8.4 2.6 3.7 1.6 4.8 2.5 -2.8 2.0
I 0.6 -6.2 -6.8 1.4 1.6 0.8 6.8 2.5 0.8 2.3
2008 ANNUAL 2.7 0.9 -1.7 3.5 -0.3 0.8 3.8 1.6 -14.2 -0.3
2008 IV 2.0 -2.2 -4.1 3.0 1.5 1.0 5.3 2.2 -8.5 1.0
III 4.6 2.5 -2.0 4.0 -1.2 -0.6 1.8 0.1 0.0 0.1
II 2.3 1.5 -0.8 3.5 -0.7 1.2 4.1 2.0 -24.3 -1.4
I 1.9 1.9 0.0 3.5 -0.7 1.6 4.1 2.3 -21.7 -0.8
---------------------------------------------------------------------------------------------------------
Indexes 2005=100
2010 II 111.9 105.2 94.1 113.4 101.9 101.4 109.8 103.7 108.2 104.3
I 112.0 r 104.2 r 93.1 113.7 r 102.0 r 101.5 r 110.4 r 104.0 r 101.1 r 103.6
2009 ANNUAL 106.4 99.7 93.7 112.5 102.4 105.8 116.0 108.6 83.4 105.4
2009 IV 109.7 101.6 92.6 113.9 102.5 103.8 112.8 106.3 89.3 104.2
III 106.5 98.5 92.5 113.5 102.9 106.6 115.3 109.0 82.3 105.6
II 105.2 98.6 93.8 112.3 102.8 106.8 117.6 109.8 78.5 105.9
I 104.3 100.1 96.0 110.5 101.5 105.9 118.4 109.4 83.3 106.1
2008 ANNUAL 104.7 106.1 101.3 110.1 99.8 105.1 112.9 107.3 85.5 104.5
2008 IV 105.7 104.4 98.8 111.5 101.9 105.5 115.9 108.4 84.2 105.3
III 105.6 106.7 101.0 110.6 98.7 104.8 112.9 107.0 94.4 105.4
II 104.1 106.6 102.4 109.4 99.1 105.2 112.2 107.1 80.7 103.8
I 103.6 106.7 103.0 108.9 99.9 105.1 110.9 106.7 82.7 103.7
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6. September 2, 2010
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 -1.7 and +1.5 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 2010.
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 1978-2009 is based on
the Consumer Price Index research series (CPI-U-RS).
(3) Unit nonlabor payments include profits, consumption of fixed
capital, taxes on production and imports less subsidies, net interest and
miscellaneous payments, business current transfer payments, rental income
of persons, and the current surplus of government enterprises.
(4) Current dollar output divided by the output index.
(5) Quarterly changes: Percent change compounded at annual rate is
calculated using index numbers to three decimal places. Indexes
published in the news release are rounded to one decimal place for
convenience. Annual changes: Percent change is calculated using annual
average indexes to three decimal places.
(6) Unit nonlabor costs include consumption of fixed capital, taxes on
production and imports less subsidies, net interest and miscellaneous
payments, and business current transfer payments.
(7) Total unit costs are the sum of unit labor and nonlabor costs.
(8) Unit profits include corporate profits before tax with inventory
valuation and capital consumption adjustments.
United States Department of Labor
