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Economic News Release
PRINT:Print

Productivity and Costs News Release



Transmission of material in this release is embargoed until                                 USDL 21-1570
8:30 a.m. (ET) Thursday, September 2, 2021

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 2021, Revised

Nonfarm business sector labor productivity increased 2.1 percent in the second quarter of 2021, the 
U.S. Bureau of Labor Statistics reported today, as output increased 8.1 percent and hours worked 
increased 6.0 percent. (All quarterly percent changes in this release are seasonally adjusted annual rates.) 
From the second quarter of 2020 to the second quarter of 2021, nonfarm business sector labor 
productivity increased 1.8 percent. (See table A1.) 

Unit labor costs in the nonfarm business sector increased at an annual rate of 1.3 percent in the second 
quarter of 2021, reflecting a 3.4-percent increase in hourly compensation and a 2.1-percent increase in 
productivity. Unit labor costs increased 0.2 percent over the last four quarters, as hourly compensation 
increased 2.0 percent and productivity increased 1.8 percent. (See table A1.) 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 productivity tend to reduce them.

Labor productivity, or output per hour, is calculated by dividing an index of real output by an index of 
hours worked by all persons, including employees, proprietors, and unpaid family workers. The second 
quarter of 2021 is the fourth consecutive quarter with increases in both output and hours worked, 
following historic declines in those measures in the second quarter of 2020. Over the past four quarters, 
nonfarm business sector output increased 15.8 percent and hours worked increased 13.7 percent. The 
output index is now 1.3 percent above the level seen in the fourth quarter of 2019, the last quarter not 
affected by the COVID-19 pandemic, while the hours worked index remains 2.7 percent below its fourth 
quarter 2019 level. (See tables A1 and 2.)

Manufacturing sector labor productivity increased 8.0 percent in the second quarter of 2021, as 
output increased 5.5 percent and hours worked decreased 2.3 percent. Although productivity also 
increased in both manufacturing subsectors, these gains reflected different underlying conditions. In the 
durable manufacturing sector, productivity increased 4.6 percent as a 0.9-percent decrease in output was 
outpaced by a 5.2-percent decrease in hours worked. In contrast, nondurable manufacturing sector 
productivity increased 10.0 percent as output (12.9 percent) grew faster than hours worked (2.7 percent); 
the output gain was driven primarily by the chemical products manufacturing industry. The second-
quarter increase in nondurable manufacturing sector productivity was the largest since the first quarter of 
2003, when productivity also increased 10.0 percent. Total manufacturing sector productivity increased 
7.2 percent from the same quarter a year ago. (See tables A1, 3, 4, and 5.)

Unit labor costs in the total manufacturing sector decreased 3.0 percent in the second quarter of 2021, 
reflecting a 4.7-percent increase in hourly compensation and an 8.0-percent increase in productivity. 
Manufacturing unit labor costs decreased 6.1 percent from the same quarter a year ago. (See tables A1 
and 3.)

Manufacturing sector output increased 17.1 percent over the last four quarters and is now just 0.3 
percent below its level in the fourth quarter of 2019, the last quarter not affected by the COVID-19 
pandemic. While hours worked in manufacturing increased 9.3 percent over the last four quarters, they 
remain 4.8 percent below the fourth-quarter 2019 level. (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. 

Preliminary second-quarter 2021 measures were announced today for the nonfinancial corporate 
sector. Productivity decreased 4.0 percent in the second quarter of 2021 as output increased 0.7 percent 
and hours worked increased 4.9 percent. Productivity increased 3.8 percent over the last four quarters. 
Unit profits of nonfinancial corporations increased at a 48.7-percent annual rate in the second quarter of 
2021 and increased 41.9 percent over the last four quarters, which is the largest four-quarter increase 
since a 42.7-percent increase in the third quarter of 2010. (See table 6.) 

Revised measures        

The measures released today are based on more recent source data than were available for the 
preliminary report. Table B1 presents previous and revised productivity and related measures for the 
business, nonfarm business, and manufacturing sectors for the second quarter of 2021. 

In the second quarter of 2021, nonfarm business sector productivity increased 2.1 percent--a 0.2-
percentage point downward revision from the preliminary estimate of 2.3 percent--due to a 0.2-
percentage point upward revision to output and a 0.5-percentage point upward revision to hours worked. 
Unit labor costs increased 1.3 percent rather than increasing 1.0 percent as previously reported, the 
combined effect of a 0.1-percentage point upward revision to hourly compensation and a 0.2-percentage 
point downward revision to productivity. 

Manufacturing sector productivity for the second quarter of 2021 was revised up to an increase of 8.0 
percent from a previously reported increase of 6.9 percent. This revision stems mainly from nondurable 
manufacturing sector productivity, which increased 10.0 percent instead of the previously reported 
increase of 7.8 percent; durable manufacturing sector productivity was unchanged from the previously 
reported increase of 4.6 percent. Total manufacturing unit labor costs decreased 3.0 percent in the 
second quarter of 2021 rather than decreasing 1.9 percent as previously reported. 

Table B2 presents previous and revised productivity and related measures for the business, nonfarm 
business, manufacturing, and nonfinancial corporate sectors for the first quarter of 2021. 

In the first quarter of 2021, nonfarm business sector productivity and unit labor costs were not revised. 
Manufacturing sector productivity was revised up 0.4 percentage point to a decrease of 0.9 percent. As a 
result, unit labor costs were revised down 0.4 percentage point to an increase of 1.5 percent. In the 
nonfinancial corporate sector, first-quarter 2021 productivity, unit labor costs, and unit profits were not 
revised. (See table 6.) 

Complete annual and quarterly data series can be found on the Productivity and Costs home page: 
www.bls.gov/lpc/#data. 
______________
The preliminary Productivity and Costs news release for third-quarter 2021 is scheduled to be 
released on Thursday, November 4, 2021 at 8:30 a.m. (ET).




=========================================================================================================================
Table A1. Labor productivity growth and related measures - revised second-quarter 2021
(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            2.1          8.1      6.0        3.4           -4.6           1.3
                        A year ago                  1.8         15.8     13.7        2.0           -2.7           0.2
                        
Business                Previous quarter            2.4          7.9      5.4        3.9           -4.2           1.4
                        A year ago                  2.0         15.7     13.5        2.2           -2.5           0.2
                        
Manufacturing           Previous quarter            8.0          5.5     -2.3        4.7           -3.4          -3.0
                        A Year ago                  7.2         17.1      9.3        0.6           -4.0          -6.1

 Durable                Previous quarter            4.6         -0.9     -5.2        5.3           -2.9           0.7
 manufacturing          A year ago                 12.5         23.4      9.7        0.2           -4.4         -10.9

 Nondurable             Previous quarter           10.0         12.9      2.7        4.5           -3.6          -5.0
 manufacturing          A year ago                  2.0         10.7      8.6        1.2           -3.5          -0.8
=========================================================================================================================


=========================================================================================================================
Table A2. Labor productivity growth and related measures - preliminary second-quarter 2021
(percent change from previous quarter at annual rate and from same quarter a year ago)


                                                Labor                   Hours    Hourly         Real hourly    Unit labor
Sector               Percent change from:       productivity   Output   worked   compensation   compensation   costs
-------------------------------------------------------------------------------------------------------------------------
Nonfinancial         Previous quarter              -4.0          0.7      4.9        3.7           -4.4           8.0
corporate            A year ago                     3.8         16.7     12.4        1.3           -3.3          -2.4
=========================================================================================================================


=========================================================================================================================
 Table B1. Labor productivity growth and related measures - revised and previously published second-quarter 2021
 (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                    2.1          8.1       6.0       3.4           -4.6           1.3
                    Previously published            2.3          7.9       5.5       3.3           -4.8           1.0
                        
 Business                Revised                    2.4          7.9       5.4       3.9           -4.2           1.4
                    Previously published            2.7          7.8       5.0       3.7           -4.4           0.9
                        
 Manufacturing           Revised                    8.0          5.5      -2.3       4.7           -3.4          -3.0
                    Previously published            6.9          3.8      -2.9       4.9           -3.3          -1.9
 
  Durable                Revised                    4.6         -0.9      -5.2       5.3           -2.9           0.7
  manufacturing     Previously published            4.6         -1.4      -5.7       5.4           -2.8           0.7
                                                                                
  Nondurable             Revised                   10.0         12.9       2.7       4.5           -3.6          -5.0
  manufacturing     Previously published            7.8          9.9       2.0       4.8           -3.4          -2.8
=========================================================================================================================


=========================================================================================================================
Table B2. Labor productivity growth and related measures - revised and previously published first-quarter 2021
(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                    4.3          8.4       4.0       1.4           -2.2          -2.8
                    Previously published            4.3          8.4       4.0       1.4           -2.2          -2.8  
                        
 Business                Revised                    4.2          8.2       3.8       1.5           -2.1          -2.6   
                    Previously published            4.2          8.2       3.8       1.5           -2.1          -2.6
                        
 Manufacturing           Revised                   -0.9          2.9       3.8       0.6           -3.1           1.5
                    Previously published           -1.3          2.4       3.8       0.6           -3.1           1.9
  Durable
  manufacturing          Revised                    1.0          6.6       5.5       1.8           -1.9           0.7
                    Previously published            0.8          6.3       5.5       1.8           -1.9           1.0
  Nondurable
  manufacturing          Revised                   -2.2         -1.2       1.0      -2.1           -5.6           0.1
                    Previously published           -2.7         -1.7       1.0      -2.1           -5.6           0.6
 
 Nonfinancial            Revised                    5.0          8.9       3.7       0.0           -3.6          -4.8
 corporate          Previously published            5.0          8.9       3.7       0.0           -3.6          -4.8
=========================================================================================================================

					
					
					TECHNICAL NOTES


Labor Hours

Hours worked data for the labor productivity and cost measures include hours worked for all 
persons working in the sector—wage and salary workers, the self-employed and unpaid family 
workers. The primary source of hours and employment data is the BLS Current Employment 
Statistics (CES) program, which provides monthly survey data on the number of jobs held by 
wage and salary workers in nonfarm establishments, counting a person who is employed by two 
or more establishments at each place of employment. The CES also provides average weekly 
paid hours of production and nonsupervisory workers in these establishments. Weekly paid hours 
are adjusted to hours worked using data from the National Compensation Survey (NCS) for 1996 
forward and data from the BLS Hours at Work survey, conducted for this purpose, prior to 1990. 
Between 1990 and 1995, weekly paid hours are adjusted to hours at work using a combination of 
NCS and Hours at Work survey data. The Office of Productivity and Technology estimates 
average weekly hours at work for nonproduction and supervisory workers using information 
from the Current Population Survey (CPS), the CES, and the NCS.

Data from the CPS are used to estimate hours worked for farm labor, nonfarm proprietors, and 
nonfarm unpaid family workers. Using CPS information on employment and hours worked at 
primary jobs and all other jobs, separately, the BLS productivity measures assign all hours 
worked to the appropriate industrial sector. Hours for government enterprises are derived from 
the CPS, the CES, and the National Income and Product Accounts (NIPA) prepared by the 
Bureau of Economic Analysis (BEA) of the Department of Commerce. 

Detailed hours data are presented in the table “Hours Worked in Total U.S. Economy and 
Subsectors” on the BLS website (www.bls.gov/lpc/special_requests/us_total_hrs_emp.xlsx).

Output

Business sector output is a chain-type, current-weighted index constructed after excluding from 
gross domestic product (GDP) the following outputs: general government, nonprofit institutions, 
and private households (including owner-occupied housing). Corresponding exclusions also are 
made in labor hours worked. Business output accounted for about 75 percent of the value of 
GDP in 2020. Nonfarm business, which excludes farming, accounted for about 74 percent of 
GDP in 2020.

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 2020. 

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)

2021 II        2.4 r       7.9 r      5.4 r      3.9 r     -4.2 r      1.4 r     16.0 r      7.3 r
     I         4.2         8.2        3.8        1.5       -2.1       -2.6       17.3        5.1  

2020 ANNUAL    2.4        -4.2       -6.5        6.8        5.5        4.3       -4.8        0.4  

2020 IV       -4.2         6.1       10.8        8.6        6.0       13.4      -13.3        1.6  
     III       5.9        44.7       36.7       -4.7       -9.0      -10.0       31.7        5.1  
     II       10.2       -36.8      -42.7       21.9       25.8       10.6      -23.2       -4.6  
     I        -1.1        -6.8       -5.8        9.2        8.1       10.5      -12.6        0.0  

2019 ANNUAL    1.9         2.6        0.7        3.8        2.0        1.8        1.1        1.5  

2019 IV        0.5         1.8        1.3        3.9        1.3        3.4       -1.2        1.4  
     III       0.6         3.1        2.5        0.1       -1.2       -0.4        2.5        0.8  
     II        4.3         3.5       -0.7        1.4       -2.0       -2.7       10.3        2.7  
     I         3.2         3.1       -0.2        9.4        8.6        5.9       -5.9        0.7  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2021 II        2.0 r      15.7       13.5 r      2.2       -2.5        0.2 r     11.7 r      4.7  
     I         3.9         1.2       -2.6        6.4        4.4        2.4        0.7        1.7  

2020 ANNUAL    2.4        -4.2       -6.5        6.8        5.5        4.3       -4.8        0.4  

2020 IV        2.5        -2.5       -4.9        8.3        7.0        5.7       -6.4        0.5  
     III       3.8        -3.5       -7.0        7.2        5.8        3.3       -3.3        0.4  
     II        2.5       -11.3      -13.5        8.5        8.0        5.9       -9.2       -0.6  
     I         1.1         0.3       -0.7        3.6        1.5        2.5       -0.6        1.2  

2019 ANNUAL    1.9         2.6        0.7        3.8        2.0        1.8        1.1        1.5  

2019 IV        2.1         2.9        0.7        3.7        1.6        1.5        1.3        1.4  
     III       2.0         2.7        0.6        3.1        1.3        1.0        2.0        1.5  
     II        2.0         2.4        0.4        4.2        2.4        2.2        0.5        1.5  
     I         1.5         2.5        1.0        4.2        2.6        2.7        0.4        1.7  
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2021 II      112.9 r     124.0 r    109.8 r    133.4 r    113.8 r    118.1 r    110.2 r    114.6 r
     I       112.3       121.6      108.3      132.2      115.0      117.7      106.2      112.6  

2020 ANNUAL  110.5       116.0      105.0      128.8      114.0      116.5      103.0      110.6  

2020 IV      111.1       119.3      107.3      131.7      115.6      118.5      102.0      111.3  
     III     112.3       117.5      104.6      129.0      113.9      114.8      105.7      110.8  
     II      110.7       107.2       96.8      130.6      116.7      117.9       98.7      109.5  
     I       108.1       120.2      111.2      124.2      110.1      115.0      105.4      110.8  

2019 ANNUAL  107.9       121.2      112.3      120.5      108.0      111.7      108.3      110.2  

2019 IV      108.4       122.3      112.9      121.5      108.0      112.1      109.0      110.8  
     III     108.2       121.8      112.5      120.4      107.7      111.2      109.3      110.4  
     II      108.1       120.8      111.8      120.3      108.0      111.3      108.6      110.2  
     I       106.9       119.8      112.0      119.9      108.5      112.1      106.0      109.4  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                  September 2, 2021
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)

2021 II        2.1 r       8.1 r      6.0 r      3.4 r     -4.6 r      1.3 r     13.6 r      6.2 r
     I         4.3         8.4        4.0        1.4       -2.2       -2.8       16.6        4.6  

2020 ANNUAL    2.4        -4.4       -6.6        7.0        5.6        4.5       -4.9        0.4  

2020 IV       -3.4         6.2        9.9        9.4        6.8       13.3      -14.8        0.9  
     III       4.6        44.6       38.2       -5.7      -10.0       -9.9       30.5        4.7  
     II       11.2       -36.9      -43.2       22.7       26.6       10.3      -21.7       -3.9  
     I        -1.8        -7.4       -5.7        9.3        8.2       11.3      -13.2        0.2  

2019 ANNUAL    2.0         2.7        0.7        3.8        2.0        1.8        1.2        1.5  

2019 IV        0.6         1.8        1.2        4.1        1.5        3.5       -1.5        1.3  
     III       0.8         3.2        2.4        0.2       -1.1       -0.5        2.4        0.7  
     II        4.3         3.6       -0.7        1.4       -2.0       -2.8       10.6        2.7  
     I         3.4         3.4        0.0        9.2        8.4        5.6       -5.5        0.7  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2021 II        1.8 r      15.8       13.7 r      2.0       -2.7        0.2 r     10.1 r      4.1  
     I         4.1         1.3       -2.7        6.4        4.5        2.3        0.4        1.5  

2020 ANNUAL    2.4        -4.4       -6.6        7.0        5.6        4.5       -4.9        0.4  

2020 IV        2.5        -2.7       -5.0        8.5        7.2        5.8       -6.8        0.4  
     III       3.6        -3.7       -7.0        7.1        5.8        3.4       -3.3        0.5  
     II        2.6       -11.5      -13.7        8.8        8.3        6.0       -9.0       -0.4  
     I         1.0         0.2       -0.8        3.7        1.6        2.7       -0.8        1.2  

2019 ANNUAL    2.0         2.7        0.7        3.8        2.0        1.8        1.2        1.5  

2019 IV        2.3         3.0        0.7        3.7        1.6        1.4        1.4        1.4  
     III       2.1         2.8        0.6        3.1        1.3        0.9        2.1        1.4  
     II        2.2         2.6        0.3        4.3        2.4        2.1        0.8        1.5  
     I         1.6         2.6        1.1        4.3        2.6        2.7        0.6        1.8  
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2021 II      112.7 r     123.8 r    109.9 r    133.7 r    114.0 r    118.6 r    109.9 r    114.8 r
     I       112.1       121.4      108.3      132.5      115.3      118.2      106.5      113.1  

2020 ANNUAL  110.2       115.7      105.0      129.1      114.3      117.1      103.8      111.3  

2020 IV      110.9       118.9      107.2      132.1      116.0      119.1      102.5      111.8  
     III     111.9       117.2      104.7      129.1      114.1      115.4      106.6      111.6  
     II      110.6       106.9       96.6      131.0      117.1      118.4       99.8      110.3  
     I       107.7       119.9      111.3      124.5      110.4      115.6      106.1      111.4  

2019 ANNUAL  107.7       121.0      112.4      120.7      108.2      112.1      109.2      110.8  

2019 IV      108.2       122.2      112.9      121.8      108.2      112.5      109.9      111.4  
     III     108.1       121.6      112.6      120.5      107.8      111.6      110.3      111.0  
     II      107.8       120.7      111.9      120.5      108.1      111.7      109.7      110.8  
     I       106.7       119.6      112.1      120.1      108.7      112.5      106.9      110.1  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                  September 2, 2021
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)

2021 II            8.0 r          5.5 r         -2.3 r          4.7 r         -3.4 r         -3.0 r
     I            -0.9 r          2.9 r          3.8            0.6           -3.1            1.5 r

2020 ANNUAL        0.3           -6.4           -6.6            6.8            5.4            6.5  

2020 IV            3.1           11.0            7.6           10.5            7.9            7.2  
     III          19.4           56.2           30.8          -12.0          -16.0          -26.3  
     II          -10.3          -44.5          -38.1           27.2           31.3           41.9  
     I             1.8           -5.5           -7.2            7.8            6.7            6.0  

2019 ANNUAL       -1.4           -1.7           -0.2            2.8            1.0            4.3  

2019 IV           -1.6           -1.5            0.1            6.7            4.0            8.5  
     III          -1.3           -0.2            1.1           -1.1           -2.4            0.2  
     II           -2.0           -3.3           -1.4            1.7           -1.7            3.8  
     I            -1.1           -4.2           -3.1            6.2            5.4            7.4  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2021 II            7.2 r         17.1 r          9.3 r          0.6           -4.0           -6.1 r
     I             2.3 r         -0.3 r         -2.5            5.6            3.7            3.3 r

2020 ANNUAL        0.3           -6.4           -6.6            6.8            5.4            6.5  

2020 IV            3.0           -2.4           -5.2            7.5            6.2            4.4  
     III           1.7           -5.2           -6.8            6.5            5.2            4.7  
     II           -3.0          -15.3          -12.7            9.7            9.2           13.1  
     I            -0.8           -2.7           -1.9            3.7            1.6            4.6  

2019 ANNUAL       -1.4           -1.7           -0.2            2.8            1.0            4.3  

2019 IV           -1.5           -2.3           -0.8            3.3            1.3            4.9  
     III          -1.8           -2.5           -0.7            2.3            0.5            4.2  
     II           -1.7           -1.8           -0.1            3.5            1.6            5.4  
     I            -0.7           -0.1            0.6            2.1            0.5            2.9  
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2021 II           99.9 r        101.0 r        101.1 r        127.2 r        108.4 r        127.3 r
     I            98.0 r         99.7 r        101.7          125.7          109.4          128.3 r

2020 ANNUAL       96.2           95.4           99.2          123.2          109.1          128.1  

2020 IV           98.2           99.0          100.8          125.5          110.2          127.8  
     III          97.4           96.4           99.0          122.4          108.1          125.6  
     II           93.2           86.2           92.5          126.4          113.0          135.6  
     I            95.8           99.9          104.3          119.0          105.5          124.3  

2019 ANNUAL       95.9          101.9          106.2          115.4          103.5          120.3  

2019 IV           95.4          101.3          106.3          116.8          103.8          122.5  
     III          95.8          101.7          106.2          114.9          102.8          120.0  
     II           96.1          101.8          105.9          115.2          103.4          119.9  
     I            96.6          102.7          106.3          114.7          103.9          118.8  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                  September 2, 2021
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)

2021 II            4.6           -0.9 r         -5.2 r          5.3 r         -2.9 r          0.7  
     I             1.0 r          6.6 r          5.5            1.8           -1.9            0.7 r

2020 ANNUAL       -0.2           -8.1           -8.0            6.8            5.5            7.0  

2020 IV            4.8           11.0            6.0           12.3            9.6            7.2  
     III          44.6           97.9           36.9          -16.1          -19.9          -42.0  
     II          -20.3          -54.4          -42.8           29.7           33.9           62.7  
     I            -2.6          -10.0           -7.6            6.9            5.8            9.7  

2019 ANNUAL       -1.7           -1.8            0.0            2.3            0.4            4.1  

2019 IV           -1.0           -2.0           -1.1           10.2            7.4           11.3  
     III          -1.0           -0.2            0.8           -2.4           -3.6           -1.4  
     II           -1.0           -3.3           -2.4            0.9           -2.4            1.9  
     I            -2.9           -5.7           -2.9            5.8            5.0            8.9  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2021 II           12.5 r         23.4 r          9.7 r          0.2           -4.4 r        -10.9 r
     I             5.1 r          1.6           -3.3            5.6            3.6            0.5  

2020 ANNUAL       -0.2           -8.1           -8.0            6.8            5.5            7.0  

2020 IV            4.1           -2.6           -6.4            6.9            5.6            2.6  
     III           2.7           -5.6           -8.0            6.4            5.1            3.6  
     II           -6.6          -20.4          -14.8           10.5           10.1           18.3  
     I            -1.4           -4.0           -2.6            3.8            1.7            5.3  

2019 ANNUAL       -1.7           -1.8            0.0            2.3            0.4            4.1  

2019 IV           -1.5           -2.9           -1.4            3.5            1.5            5.1  
     III          -2.0           -2.4           -0.4            1.3           -0.5            3.4  
     II           -2.0           -1.7            0.3            2.6            0.8            4.7  
     I            -1.5           -0.1            1.4            1.6            0.0            3.1  
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2021 II          101.6 r        100.8 r         99.3 r        128.1 r        109.3 r        126.1 r
     I           100.5 r        101.1 r        100.6          126.5          110.1          125.9 r

2020 ANNUAL       96.4           94.4           97.9          123.8          109.6          128.5  

2020 IV          100.2           99.5           99.3          126.0          110.6          125.7  
     III          99.0           96.9           97.8          122.4          108.1          123.5  
     II           90.3           81.7           90.5          127.9          114.3          141.6  
     I            95.6           99.4          104.0          119.8          106.2          125.3  

2019 ANNUAL       96.6          102.7          106.4          116.0          104.0          120.1  

2019 IV           96.2          102.1          106.1          117.8          104.7          122.5  
     III          96.4          102.6          106.4          115.0          102.9          119.2  
     II           96.7          102.7          106.2          115.7          103.8          119.6  
     I            96.9          103.5          106.8          115.4          104.5          119.1  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                  September 2, 2021
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)

2021 II           10.0 r         12.9 r          2.7 r          4.5 r         -3.6 r         -5.0 r
     I            -2.2 r         -1.2 r          1.0           -2.1           -5.6            0.1 r

2020 ANNUAL       -0.1           -4.4           -4.3            7.1            5.8            7.2  

2020 IV            0.5           10.9           10.3            7.6            5.1            7.1  
     III          -0.1           21.4           21.5           -4.8           -9.1           -4.8  
     II           -3.3          -31.7          -29.4           25.2           29.3           29.5  
     I             6.6           -0.3           -6.4            9.8            8.7            3.1  

2019 ANNUAL       -1.0           -1.6           -0.6            3.9            2.0            4.9  

2019 IV           -3.1           -0.9            2.3            0.5           -2.0            3.7  
     III          -1.7           -0.2            1.5            1.4            0.1            3.2  
     II           -3.8           -3.3            0.5            3.6            0.1            7.6  
     I             1.0           -2.5           -3.5            6.9            6.1            5.8  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2021 II            2.0 r         10.7 r          8.6 r          1.2           -3.5 r         -0.8 r
     I            -1.3 r         -2.4 r         -1.1            5.9            3.9            7.2 r

2020 ANNUAL       -0.1           -4.4           -4.3            7.1            5.8            7.2  

2020 IV            0.9           -2.2           -3.0            9.0            7.6            8.0  
     III          -0.1           -4.9           -4.8            7.1            5.8            7.2  
     II           -0.5           -9.4           -9.0            8.8            8.3            9.3  
     I            -0.6           -1.2           -0.6            3.8            1.6            4.4  

2019 ANNUAL       -1.0           -1.6           -0.6            3.9            2.0            4.9  

2019 IV           -1.9           -1.8            0.2            3.1            1.0            5.1  
     III          -1.4           -2.5           -1.1            4.3            2.5            5.8  
     II           -1.3           -1.9           -0.7            5.2            3.3            6.6  
     I             0.6           -0.1           -0.7            3.0            1.3            2.4  
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2021 II           98.2 r        102.4 r        104.3 r        125.9 r        107.3 r        128.2 r
     I            95.9 r         99.3 r        103.6          124.5          108.3          129.9 r

2020 ANNUAL       96.5           97.7          101.3          122.4          108.4          126.9  

2020 IV           96.4           99.6          103.3          125.1          109.9          129.8  
     III          96.2           97.0          100.8          122.9          108.5          127.7  
     II           96.3           92.5           96.0          124.4          111.2          129.2  
     I            97.1          101.7          104.8          117.6          104.2          121.1  

2019 ANNUAL       96.5          102.2          105.9          114.3          102.5          118.4  

2019 IV           95.5          101.8          106.5          114.9          102.1          120.2  
     III          96.3          102.0          105.9          114.7          102.6          119.1  
     II           96.7          102.1          105.5          114.3          102.6          118.2  
     I            97.7          102.9          105.4          113.3          102.6          116.0  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                  September 2, 2021
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)

2021 II       -4.0       0.7      4.9       3.7      -4.4       8.0    -11.8      1.8     48.7      7.8  
     I         5.0       8.9      3.7       0.0      -3.6      -4.8     18.7      1.6     30.0      5.1  

2020 ANNUAL    2.2      -4.2     -6.3       6.9       5.6       4.6    -10.6     -0.2      2.4      0.1  

2020 IV       16.3      28.4     10.3       7.7       5.2      -7.4     53.3      6.3    -31.4     -0.2  
     III      -0.8      31.7     32.8      -5.7      -9.9      -4.9    -21.4     -9.6    206.1      6.2  
     II        3.8     -39.0    -41.2      25.0      29.1      20.5    -49.3     -6.5     -9.1     -6.8  
     I         1.1      -3.3     -4.3       7.8       6.7       6.6      4.2      5.8    -35.4     -0.4  

2019 ANNUAL    1.4       2.3      0.9       3.9       2.1       2.5      1.9      2.3     -1.2      1.9  

2019 IV        1.1       2.2      1.1       3.6       1.0       2.6     -2.7      0.8      8.8      1.8  
     III       0.5       1.1      0.6       1.0      -0.4       0.5      5.3      2.0      2.6      2.1  
     II        1.3       1.6      0.3       2.3      -1.2       1.0      1.7      1.2     13.3      2.6  
     I         2.7       3.4      0.7       8.0       7.2       5.2      3.2      4.6    -31.2     -1.0  
---------------------------------------------------------------------------------------------------------
                       Percent change from corresponding quarter of previous year

2021 II        3.8      16.7     12.4       1.3      -3.3      -2.4      6.0     -0.2     41.9      4.7  
     I         5.9       3.0     -2.8       6.2       4.2       0.2     -7.7     -2.3     25.5      1.0  

2020 ANNUAL    2.2      -4.2     -6.3       6.9       5.6       4.6    -10.6     -0.2      2.4      0.1  

2020 IV        4.9      -0.1     -4.7       8.2       6.9       3.1    -10.7     -1.2      5.4     -0.4  
     III       1.3      -5.6     -6.8       7.1       5.8       5.8    -20.3     -2.5     18.3      0.1  
     II        1.6     -11.6    -13.0       9.0       8.5       7.3    -14.2      0.4    -10.0     -0.9  
     I         1.0       0.4     -0.6       3.6       1.5       2.6      2.1      2.4     -4.9      1.5  

2019 ANNUAL    1.4       2.3      0.9       3.9       2.1       2.5      1.9      2.3     -1.2      1.9  

2019 IV        1.4       2.1      0.7       3.7       1.6       2.3      1.8      2.1     -3.4      1.4  
     III       1.1       1.7      0.7       3.5       1.7       2.4      3.2      2.6     -2.4      2.0  
     II        2.2       3.0      0.8       4.5       2.6       2.2      1.1      1.9      0.8      1.7  
     I         0.9       2.3      1.4       4.1       2.5       3.2      1.4      2.6      0.6      2.3  
---------------------------------------------------------------------------------------------------------
                                            Indexes 2012=100

2021 II      110.1     122.2    111.0     132.8     113.2     120.6     97.6    112.9    125.7    114.8  
     I       111.3     122.0    109.6     131.6     114.5     118.3    100.7    112.4    113.8    112.6  

2020 ANNUAL  106.7     113.7    106.5     128.9     114.1     120.8     96.3    112.6    100.9    111.0  

2020 IV      109.9     119.4    108.6     131.6     115.6     119.8     96.5    112.0    106.6    111.2  
     III     105.8     112.2    106.0     129.2     114.1     122.1     86.7    110.3    117.2    111.3  
     II      106.1     104.7     98.7     131.1     117.2     123.6     92.1    113.1     88.6    109.6  
     I       105.1     118.5    112.8     124.0     109.9     118.0    109.1    115.0     90.7    111.6  

2019 ANNUAL  104.4     118.7    113.7     120.6     108.1     115.5    107.7    112.9     98.5    110.8  

2019 IV      104.8     119.5    114.0     121.7     108.1     116.1    108.0    113.4    101.2    111.7  
     III     104.5     118.8    113.7     120.6     107.9     115.4    108.7    113.2     99.1    111.2  
     II      104.4     118.5    113.5     120.3     108.0     115.3    107.3    112.6     98.4    110.6  
     I       104.0     118.0    113.4     119.6     108.3     115.0    106.9    112.3     95.4    109.9  
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                        September 2, 2021
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.

SIZE OF REVISIONS:  Productivity and cost measures are revised on a regular schedule as more 
complete data become available. The first estimate is published within 40 days of the close of the 
reference quarter, the second estimate approximately 30 days later, and the third estimate approximately 
60 days after the second estimate. Based on past revisions, the third estimate of nonfarm business sector 
quarterly labor productivity growth has differed from the first estimate by -1.0 to +1.4 percentage point 
about 80 percent of the time. This interval is based on estimates for reference quarters from the first 
quarter of 2001 to the first quarter of 2021. For more about revisions to labor productivity growth see 
“How large are revisions to estimates of quarterly labor productivity growth?” at 
www.bls.gov/osmr/research-papers/2021/ec210040.htm.

                                          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 1978-2020 is based on the Consumer Price Index Retroactive series (CPI-U-
RS).

(3) Unit nonlabor payments include profits, consumption of fixed capital, taxes on production and 
imports less subsidies, net interest and miscellaneous payments, business current transfer payments, 
rental income of persons, and the current surplus of government enterprises.

(4) Current dollar output divided by the output index.

(5) Quarterly changes: Percent change compounded at annual rate is calculated using index numbers to 
three decimal places. Indexes published in the news release are rounded to one decimal place for 
convenience. Annual changes: Percent change is calculated using annual indexes to three decimal 
places.

(6) Unit nonlabor costs include consumption of fixed capital, taxes on production and imports less 
subsidies, net interest and miscellaneous payments, and business current transfer payments.

(7) Total unit costs are the sum of unit labor and nonlabor costs.

(8) Unit profits include corporate profits before tax with inventory valuation and capital consumption 
adjustment.

Last Modified Date: September 02, 2021