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Economic News Release
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Productivity and Costs News Release




Transmission of material in this release is embargoed until                              USDL 20-1649
8:30 a.m. (ET) Thursday, September 3, 2020

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 2020, Revised

Nonfarm business sector labor productivity increased 10.1 percent in the second quarter of 2020, the 
U.S. Bureau of Labor Statistics reported today, as output decreased 37.1 percent and hours worked 
decreased 42.9 percent. (All quarterly percent changes in this release are seasonally adjusted annual 
rates, and show what the percent change would be if the quarterly rate continued for four quarters.) 

The 10.1-percent increase in nonfarm business sector labor productivity in the second quarter of 2020 is 
the largest quarterly increase since the first quarter of 1971, when output per hour increased 12.3 
percent. The declines in both output and hours worked in the second quarter of 2020 were the largest in 
these series, which begin with data for first-quarter 1947. From the second quarter of 2019 to the second 
quarter of 2020, productivity increased 2.8 percent, reflecting an 11.2-percent decrease in output and a 
13.6-percent decrease in hours worked. (See table A1.) 

Unit labor costs in the nonfarm business sector increased at an annual rate of 9.0 percent in the second 
quarter of 2020, as a 20.0-percent increase in hourly compensation outpaced the 10.1-percent increase in 
productivity. Unit labor costs increased 9.6 percent in the first quarter of 2020, and 4.9 percent over the 
last four quarters. (See table 2.) BLS calculates unit labor costs as the ratio of hourly compensation to 
labor productivity. Increases in hourly compensation tend to increase unit labor costs, and increases in 
labor productivity tend to reduce unit labor costs. 

The 20.0-percent increase in hourly compensation in the second quarter of 2020 was the largest increase 
in the series which begins in 1947. Also, the labor share--defined as the percentage of current-dollar 
output that accrues to workers in the form of compensation--increased to 59.8 percent in the second 
quarter of 2020, the highest level since the fourth quarter of 2008 (60.1 percent). 

Manufacturing sector labor productivity decreased at a 14.6 percent annual rate in the second quarter 
of 2020, as output fell 47.0 percent and hours worked dropped 38.0 percent. These were the largest 
quarterly declines in each of these series, which begin with data for 1987. Total manufacturing sector 
productivity declined 3.7 percent over the last four quarters, as output decreased 15.7 percent and hours 
worked decreased 12.4 percent. For the second quarter of 2020, durable manufacturing saw a 26.9-
percent decrease in productivity, reflecting a 57.9-percent decrease in output and a 42.4-percent decrease 
in hours worked. Nondurable manufacturing saw a 5.1-percent decrease in productivity, as output 
decreased 33.5 percent and hours worked decreased 30.0 percent. (See tables A1, 3, 4, 5.) 

Unit labor costs in the total manufacturing sector increased 29.1 percent in the second quarter of 2020, 
and increased 8.9 percent from the same quarter a year ago. The increase in unit labor costs in the 
second quarter of 2020 was the largest increase in the series for total manufacturing, as were unit labor 
cost increases in the durable manufacturing and nondurable manufacturing sectors. (See table A1.) 

The concepts, sources, and methods used for the manufacturing output series differ from those used in 
the business and nonfarm business output series; these output measures are not directly comparable. See 
the Technical Notes for a more detailed explanation. 

Nonfinancial corporate sector labor productivity increased at a 3.1-percent annual rate in the second 
quarter of 2020 as output fell 39.3 percent and hours worked fell 41.1 percent. Both the output and the 
hours worked declines were the largest in these series, which begin in 1947. Since the second quarter of 
2019, labor productivity in the nonfinancial corporate sector has increased 0.9 percent.

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 
nonfarm business, business, and manufacturing sectors. 

In the second quarter of 2020, nonfarm business sector productivity increased 10.1 percent--a 2.8-
percentage point upward revision from the preliminary estimate of 7.3 percent--mainly due to a 1.8-
percentage point upward revision to output. Unit labor costs increased 9.0 percent, a smaller increase 
than previously reported (12.2 percent). This downward revision is largely due to the 2.8-percentage 
point upward revision to productivity; the remaining revision comes from hourly compensation being 
revised down 0.4 percentage point, from a 20.4-percent increase to a 20.0-percent increase.

Manufacturing sector productivity for the second quarter of 2020 was revised up to a decrease of 14.6 
percent from a previously-reported decrease of 15.5 percent. Durable manufacturing productivity was 
also revised up, to a decline of 26.9 percent; nondurable manufacturing productivity was revised down 
slightly, to a decline of 5.1 percent. Total manufacturing unit labor costs increased 29.1 percent in the 
second quarter of 2020, rather than increasing 31.1 percent as previously reported.

Table B2 shows previous and revised labor productivity and related measures for the nonfarm business, 
business, manufacturing and nonfinancial corporate sectors for the first quarter of 2020.

In the first quarter of 2020, nonfarm business productivity was not revised. Unit labor costs were 
revised down slightly to an increase of 9.6 percent. Manufacturing sector productivity was revised up 
0.1-percentage point to an increase of 1.7 percent. Unit labor costs were revised down to an increase of 
4.2 percent. In the nonfinancial corporate sector, first-quarter 2020 productivity was revised down 0.1-
percentage point, to an increase of 0.2 percent. Unit profits were revised up 0.1-percentage point, to a 
decline of 44.1 percent. (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 2020 is scheduled to be 
released on Thursday, November 5, 2020 at 8:30 a.m. (ET).

-------------------------------------------------------------------------------------------------------------------------
                   Coronavirus (COVID-19) Pandemic Impact on Productivity Data
                   
BLS quarterly estimates of labor productivity combine output data with hours worked data based 
primarily on BLS Current Employment Statistics (CES) survey and supplemented with data from the 
Current Population Survey (CPS). The March reference period for these surveys largely predated many 
of the COVID-19-related job losses that occurred in the latter part of March. To capture these job losses, 
adjustments were made to employment and hours using supplementary data. Hours worked and related 
measures--including labor productivity--for the first quarter of 2020 reflect these adjustments.

Given the continued rapid changes in the economy, BLS explored the possibility of adjusting second 
quarter (Q2) estimates. BLS compared several adjustment methods for Q2 and found that the economic 
movements between April and June tended to be offsetting, resulting in Q2 results that were similar to 
the usual methodology. Therefore no adjustments were made to Q2. For more information see 
www.bls.gov/covid19/productivity-and-costs-covid19-impacts-second-quarter-2020-preliminary.htm.
-------------------------------------------------------------------------------------------------------------------------


=========================================================================================================================
Table A1. Labor productivity growth and related measures – revised second-quarter 2020
(percent change from previous quarter at annual rate and from same quarter a year ago)

                                                Labor                   Hours    Hourly         Real hourly    Unit labor
Sector                  Percent change from:    productivity   Output   worked   compensation   compensation   costs
-------------------------------------------------------------------------------------------------------------------------
Nonfarm business         Previous quarter          10.1         -37.1   -42.9       20.0            24.4         9.0
                         A year ago                 2.8         -11.2   -13.6        7.8             7.4         4.9
                         
Business                 Previous quarter           8.9         -37.2   -42.3       19.3            23.7         9.6
                         A year ago                 2.5         -11.1   -13.3        7.6             7.1         4.9
                         
Manufacturing            Previous quarter         -14.6         -47.0   -38.0       10.3            14.4        29.1
                         A year ago                -3.7         -15.7   -12.4        4.8             4.3         8.9
                         
Durable manufacturing    Previous quarter         -26.9         -57.9   -42.4        9.1            13.1        49.2
                         A year ago                -8.3         -21.5   -14.4        4.5             4.0        13.9
                         
Nondurable manufacturing Previous quarter          -5.1         -33.5   -30.0       14.6            18.8        20.7
                         A year ago                -0.4          -9.5    -9.1        6.0             5.5         6.4
=========================================================================================================================


=========================================================================================================================
Table A2. Labor productivity growth and related measures – preliminary second-quarter 2020
(percent change from previous quarter at annual rate and from same quarter a year ago)

                                                Labor                   Hours    Hourly         Real hourly    Unit labor
Sector               Percent change from:       productivity   Output   worked   compensation   compensation   costs
-------------------------------------------------------------------------------------------------------------------------
Nonfinancial corporate   Previous quarter           3.1         -39.3   -41.1       27.1            31.7        23.3
                         A year ago                 0.9         -12.1   -12.9        9.0             8.5         7.9
=========================================================================================================================


=========================================================================================================================
Table B1. Labor productivity growth and related measures – revised and previously published second-quarter 2020
(percent change from previous quarter at annual rate) 


                                                Labor                   Hours    Hourly         Real hourly    Unit labor
Sector                                          productivity   Output   worked   compensation   compensation   costs
-------------------------------------------------------------------------------------------------------------------------
Nonfarm business         Revised                   10.1         -37.1   -42.9       20.0            24.4         9.0
                         Previously published       7.3         -38.9   -43.0       20.4            24.8        12.2
                         
Business                 Revised                    8.9         -37.2   -42.3       19.3            23.7         9.6
                         Previously published       6.6         -38.7   -42.5       19.7            24.1        12.3
                         
Manufacturing            Revised                  -14.6         -47.0   -38.0       10.3            14.4        29.1
                         Previously published     -15.5         -47.0   -37.3       10.7            14.8        31.1
                         
Durable manufacturing    Revised                  -26.9         -57.9   -42.4        9.1            13.1        49.2
                         Previously published     -28.4         -58.1   -41.5        8.9            12.9        52.2
                         
Nondurable manufacturing Revised                   -5.1         -33.5   -30.0       14.6            18.8        20.7
                         Previously published      -4.9         -33.2   -29.8       16.0            20.3        22.0
=========================================================================================================================


=========================================================================================================================
Table B2. Labor productivity growth and related measures – revised and previously published first-quarter 2020
(percent change from previous quarter at annual rate) 


                                                Labor                   Hours    Hourly         Real hourly    Unit labor
Sector                                          productivity   Output   worked   compensation   compensation   costs
-------------------------------------------------------------------------------------------------------------------------
Nonfarm business         Revised                   -0.3          -6.4    -6.1        9.2             7.9         9.6
                         Previously published      -0.3          -6.4    -6.1        9.4             8.1         9.8
                         
Business                 Revised                    0.0          -6.0    -6.0        9.0             7.7         9.0
                         Previously published       0.0          -6.0    -6.0        9.2             7.9         9.2
                         
Manufacturing            Revised                    1.7          -5.4    -7.0        6.0             4.7         4.2
                         Previously published       1.6          -5.6    -7.0        6.2             4.9         4.6
                         
Durable manufacturing    Revised                   -2.6          -9.8    -7.4        4.5             3.2         7.3
                         Previously published      -2.5          -9.7    -7.4        4.6             3.3         7.3
                         
Nondurable manufacturing Revised                    6.2          -0.6    -6.4        9.0             7.7         2.6
                         Previously published       5.8          -1.0    -6.4        9.6             8.3         3.6
                         
Nonfinancial corporate   Revised                    0.2          -4.0    -4.2        8.1             6.8         7.9
                         Previously published       0.3          -3.9    -4.2        8.4             7.1         8.0
=========================================================================================================================



					TECHNICAL NOTES


Labor Hours

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

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

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

Output

Business sector output is a chain-type, current-weighted index constructed after excluding from gross 
domestic product (GDP) the following outputs: general government, nonprofit institutions, and private 
households (including owner-occupied housing). Corresponding exclusions also are made in labor hours 
worked. Business output accounted for about 78 percent of the value of GDP in 2019. Nonfarm 
business, which excludes farming, accounted for about 77 percent of GDP in 2019.

Annual indexes for manufacturing and its durable and nondurable goods components are constructed by 
deflating current-dollar industry value of production data from the U.S. Bureau of the Census with 
deflators from the BLS. These deflators are based on data from the BLS Producer Price Index program 
and other sources. The industry shipments are aggregated using annual weights, and intrasector 
transactions are removed. Quarterly manufacturing output measures are based on the indexes of 
industrial production prepared monthly by the Board of Governors of the Federal Reserve System, 
adjusted to be consistent with annual indexes of manufacturing sector output prepared by BLS. 

Nonfinancial corporate output is a chain-type, current-weighted index calculated on the basis of the 
costs incurred and the incomes earned from production.  The output measure excludes the following 
outputs from GDP: general government; nonprofit institutions; private households; unincorporated 
business; and those corporations classified as offices of bank holding companies, offices of other 
holding companies, or offices in the finance and insurance sector. Nonfinancial corporations accounted 
for about 50 percent of the value of GDP in 2019. 


Labor Productivity

The measure describes the relationship between real output and the labor time involved in its production. 
Measures of labor productivity growth show the changes from period to period in the amount of goods 
and services produced per hour worked. They reflect the joint effects of many influences, including 
changes in technology; capital investment; level of output; utilization of capacity, energy, and materials; 
the organization of production; managerial skill; and the characteristics and effort of the work force.

Labor Compensation

The measure includes accrued wages and salaries, supplements, employer contributions to employee 
benefit plans, and taxes. Estimates of labor compensation by major sector, required for measures of 
hourly compensation and unit labor costs, are based primarily on employee compensation data from the 
NIPA, prepared by the BEA. The compensation of employees in general government, nonprofit 
institutions and private households are subtracted from compensation of employees in domestic 
industries to derive employee compensation for the business sector. The labor compensation of 
proprietors cannot be explicitly identified and must be estimated. This is done by assuming that 
proprietors have the same hourly compensation as employees in the same sector. The quarterly labor 
productivity and cost measures do not contain estimates of compensation for unpaid family workers.  
      
Unit Labor Costs

These measures describe the relationship between compensation per hour and labor productivity, or real 
output per hour, and can be used as an indicator of inflationary pressure on producers. Increases in 
hourly compensation increase unit labor costs; labor productivity increases offset compensation 
increases and lower unit labor costs. 

Presentation of the data

The quarterly data in this release are presented in three ways: as percent changes from the previous 
quarter presented at a compound annual rate, as percent changes from the corresponding quarter of the 
previous year, and as index number series where 2012=100. Annual data are presented both as index 
number series and percent changes from the previous year.  

The index numbers and rates of change reported in the productivity and costs news release are rounded 
to one decimal place. All percent changes in this release and on the BLS web site are calculated using 
index numbers to three decimal places. A complete historical series of these index numbers are available 
at the BLS web site, www.bls.gov/data/home.htm, or by contacting the BLS Division of Major Sector 
Productivity (Telephone 202-691-5606 or email productivity@bls.gov).

For a more detailed explanation of methodology see "Technical Information About the Major Sector 
Productivity and Costs Methods" at www.bls.gov/lpc/lpcmethods.pdf.
      
Information in this release will be made available to sensory-impaired individuals upon request. Voice 
phone: 202-691-5200; Federal Relay Service number: 1-800-877-8339.



Table 1. Business sector: Labor productivity, hourly compensation, unit labor costs, and prices,
seasonally adjusted.
                                                          Real
                                               Hourly     hourly                Unit       Implicit
Year          Labor                            compen-    compen-     Unit      nonlabor   price
and           produc-               Hours      sation     sation      labor     payments   deflator
quarter       tivity     Output     worked     (1)        (2)         costs     (3)        (4)
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate (5)

2020 II        8.9 r     -37.2 r    -42.3 r     19.3 r     23.7 r      9.6 r    -21.8 r     -4.7 r
     I         0.0        -6.0       -6.0        9.0 r      7.7 r      9.0 r     -9.2 r      0.8  

2019 ANNUAL    1.7         2.4        0.7        3.6        1.8        1.9        0.9        1.5  

2019 IV        1.4         2.8        1.4        3.1        0.7        1.7        0.6        1.2  
     III       0.2         2.9        2.7       -0.1       -1.9       -0.3        2.9        1.1  
     II        2.2         1.3       -0.9        1.7       -1.3       -0.5        7.8        3.0  
     I         3.6         3.6        0.0        8.8        7.9        5.0       -5.4        0.4  

2018 ANNUAL    1.6         3.5        1.9        3.4        0.9        1.8        2.7        2.2  

2018 IV        0.7         1.5        0.8        1.5        0.3        0.9        2.2        1.4  
     III       0.1         2.3        2.1        4.7        2.5        4.5       -3.0        1.1  
     II        1.7         3.0        1.3        1.7       -0.5       -0.1        8.4        3.6  
     I         2.9         4.5        1.6        2.7       -0.6       -0.2        5.0        2.0  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2020 II        2.5 r     -11.1 r    -13.3 r      7.6 r      7.1 r      4.9 r     -7.4 r     -0.4  
     I         0.9         0.2       -0.8        3.3 r      1.2 r      2.4        0.3        1.5  

2019 ANNUAL    1.7         2.4        0.7        3.6        1.8        1.9        0.9        1.5  

2019 IV        1.8         2.6        0.8        3.3        1.3        1.4        1.4        1.4  
     III       1.7         2.3        0.6        2.9        1.1        1.2        1.8        1.5  
     II        1.7         2.2        0.5        4.1        2.3        2.4        0.2        1.5  
     I         1.5         2.6        1.0        4.1        2.5        2.6        0.4        1.6  

2018 ANNUAL    1.6         3.5        1.9        3.4        0.9        1.8        2.7        2.2  

2018 IV        1.3         2.8        1.4        2.6        0.4        1.3        3.1        2.0  
     III       1.3         3.6        2.2        3.4        0.7        2.1        2.7        2.3  
     II        2.0         3.9        1.9        3.7        1.0        1.6        3.7        2.5  
     I         1.6         3.7        2.1        3.9        1.6        2.3        1.3        1.9  
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2020 II      111.0 r     107.6 r     96.9 r    129.2 r    115.5 r    116.4 r    101.0 r    109.7 r
     I       108.7       120.8      111.2      123.6 r    109.6 r    113.8 r    107.4 r    111.0  

2019 ANNUAL  108.2       121.6      112.3      120.2      107.8      111.1      109.0      110.2  

2019 IV      108.7       122.7      113.0      121.0      107.6      111.4      110.1      110.8  
     III     108.3       121.9      112.6      120.1      107.4      110.9      109.9      110.4  
     II      108.3       121.0      111.8      120.1      107.9      111.0      109.1      110.2  
     I       107.7       120.6      112.1      119.6      108.3      111.1      107.1      109.4  

2018 ANNUAL  106.4       118.7      111.5      116.0      105.9      109.0      108.0      108.6  

2018 IV      106.7       119.6      112.1      117.1      106.2      109.8      108.6      109.3  
     III     106.5       119.1      111.8      116.7      106.2      109.5      108.0      108.9  
     II      106.5       118.5      111.3      115.4      105.5      108.3      108.8      108.5  
     I       106.0       117.6      110.9      114.9      105.6      108.3      106.7      107.6  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                  September 3, 2020
r=revised                                                        Source: Bureau of Labor Statistics



Table 2. Nonfarm business sector: Labor productivity, hourly compensation, unit labor costs, and
prices, seasonally adjusted.
                                                          Real
                                               Hourly     hourly                Unit       Implicit
Year          Labor                            compen-    compen-     Unit      nonlabor   price
and           produc-               Hours      sation     sation      labor     payments   deflator
quarter       tivity     Output     worked     (1)        (2)         costs     (3)        (4)
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate (5)

2020 II       10.1 r     -37.1 r    -42.9 r     20.0 r     24.4 r      9.0 r    -19.9 r     -4.0 r
     I        -0.3        -6.4       -6.1        9.2 r      7.9 r      9.6 r     -9.8 r      0.8  

2019 ANNUAL    1.7         2.5        0.7        3.6        1.8        1.9        1.1        1.5  

2019 IV        1.6         2.8        1.2        3.3        0.9        1.7        0.6        1.2  
     III       0.3         2.9        2.6       -0.2       -2.0       -0.4        2.9        1.0  
     II        2.0         1.2       -0.7        1.4       -1.6       -0.6        8.0        3.0  
     I         3.7         3.8        0.1        8.7        7.7        4.8       -5.2        0.4  

2018 ANNUAL    1.4         3.5        2.0        3.4        0.9        1.9        2.7        2.2  

2018 IV        0.8         1.4        0.7        1.8        0.5        1.0        1.9        1.4  
     III       0.5         2.3        1.8        5.1        2.9        4.5       -2.4        1.4  
     II        1.1         3.0        1.8        1.3       -0.9        0.2        8.3        3.6  
     I         2.3         4.3        2.0        2.2       -1.0        0.0        4.9        2.1  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2020 II        2.8 r     -11.2 r    -13.6 r      7.8 r      7.4 r      4.9 r     -7.0 r     -0.3 r
     I         0.9         0.1       -0.8        3.4        1.2 r      2.5        0.2 r      1.5  

2019 ANNUAL    1.7         2.5        0.7        3.6        1.8        1.9        1.1        1.5  

2019 IV        1.9         2.7        0.8        3.3        1.2        1.4        1.4        1.4  
     III       1.7         2.3        0.6        2.9        1.1        1.2        1.8        1.4  
     II        1.7         2.2        0.4        4.2        2.3        2.4        0.5        1.6  
     I         1.5         2.6        1.1        4.2        2.5        2.6        0.5        1.7  

2018 ANNUAL    1.4         3.5        2.0        3.4        0.9        1.9        2.7        2.2  

2018 IV        1.2         2.7        1.6        2.6        0.4        1.4        3.1        2.1  
     III       1.3         3.6        2.2        3.5        0.8        2.2        2.7        2.4  
     II        1.8         3.9        2.1        3.5        0.8        1.7        3.7        2.6  
     I         1.5         3.7        2.2        3.8        1.6        2.3        1.4        1.9  
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2020 II      110.9 r     107.3 r     96.7 r    129.7 r    115.9 r    116.9 r    102.3 r    110.5 r
     I       108.3       120.5      111.2      123.9 r    109.8 r    114.4 r    108.2 r    111.7  

2019 ANNUAL  107.9       121.3      112.4      120.4      107.9      111.5      110.0      110.8  

2019 IV      108.4       122.5      113.0      121.2      107.7      111.8      111.0      111.4  
     III     108.0       121.6      112.7      120.2      107.5      111.3      110.8      111.1  
     II      107.9       120.8      111.9      120.2      108.0      111.4      110.1      110.8  
     I       107.4       120.4      112.1      119.8      108.4      111.6      108.0      110.0  

2018 ANNUAL  106.1       118.4      111.6      116.2      106.0      109.5      108.8      109.2  

2018 IV      106.4       119.3      112.1      117.3      106.4      110.3      109.4      109.9  
     III     106.2       118.9      111.9      116.8      106.3      110.0      108.9      109.5  
     II      106.1       118.2      111.4      115.4      105.5      108.8      109.6      109.1  
     I       105.8       117.3      110.9      115.0      105.8      108.8      107.4      108.2  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                  September 3, 2020
r=revised                                                        Source: Bureau of Labor Statistics



Table 3. Manufacturing sector: Labor productivity, hourly compensation, and unit labor costs,
seasonally adjusted.
                                                                             Real
Year              Labor                                       Hourly         hourly          Unit
and               produc-                      Hours          compensa-      compensa-       labor
quarter           tivity        Output         worked         tion (1)       tion (2)        costs
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate (5)

2020 II          -14.6 r        -47.0          -38.0 r         10.3 r         14.4 r         29.1 r
     I             1.7 r         -5.4 r         -7.0            6.0 r          4.7 r          4.2 r

2019 ANNUAL        0.1            0.0           -0.1            2.9            1.1            2.8  

2019 IV           -0.7           -0.2            0.5            5.2            2.8            6.0  
     III          -0.5            0.9            1.4           -1.9           -3.7           -1.4  
     II           -2.3           -3.1           -0.9            1.4           -1.6            3.8  
     I             1.3           -1.7           -3.1            6.9            6.0            5.5  

2018 ANNUAL        0.3            2.2            1.9            2.1           -0.3            1.8  

2018 IV            0.9            1.6            0.6            3.4            2.1            2.4  
     III           0.3            4.0            3.7            3.6            1.5            3.3  
     II            1.3            2.6            1.3           -3.4           -5.5           -4.7  
     I            -0.1            1.8            1.9            2.5           -0.8            2.6  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2020 II           -3.7 r        -15.7 r        -12.4 r          4.8 r          4.3 r          8.9 r
     I            -0.5           -2.0           -1.5            2.6 r          0.5 r          3.1 r

2019 ANNUAL        0.1            0.0           -0.1            2.9            1.1            2.8  

2019 IV           -0.6           -1.1           -0.5            2.9            0.8            3.4  
     III          -0.1           -0.6           -0.5            2.4            0.6            2.6  
     II            0.1            0.1            0.1            3.8            2.0            3.8  
     I             1.0            1.6            0.6            2.6            0.9            1.6  

2018 ANNUAL        0.3            2.2            1.9            2.1           -0.3            1.8  

2018 IV            0.6            2.5            1.9            1.5           -0.7            0.9  
     III           1.1            3.3            2.2            1.9           -0.8            0.7  
     II           -0.3            1.7            2.0            1.6           -1.1            1.9  
     I            -0.2            1.4            1.6            3.6            1.4            3.8  
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2020 II           95.0 r         88.2 r         92.9 r        121.1 r        108.3 r        127.5 r
     I            98.8 r        103.4 r        104.7          118.1 r        104.7 r        119.6 r

2019 ANNUAL       98.7          105.0          106.4          115.5          103.5          117.1  

2019 IV           98.3          104.8          106.6          116.4          103.5          118.4  
     III          98.5          104.9          106.5          115.0          102.8          116.7  
     II           98.6          104.7          106.1          115.5          103.8          117.1  
     I            99.2          105.5          106.3          115.1          104.2          116.0  

2018 ANNUAL       98.6          105.0          106.4          112.2          102.4          113.8  

2018 IV           98.9          106.0          107.1          113.2          102.7          114.5  
     III          98.7          105.5          107.0          112.3          102.1          113.8  
     II           98.6          104.5          106.0          111.3          101.8          112.9  
     I            98.3          103.8          105.7          112.2          103.2          114.2  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                  September 3, 2020
r=revised                                                        Source: Bureau of Labor Statistics



Table 4. Durable manufacturing sector: Labor productivity, hourly compensation, and unit labor
costs, seasonally adjusted.
                                                                             Real
Year              Labor                                       Hourly         hourly          Unit
and               produc-                      Hours          compensa-      compensa-       labor
quarter           tivity        Output         worked         tion (1)       tion (2)        costs
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate (5)

2020 II          -26.9 r        -57.9 r        -42.4 r          9.1 r         13.1 r         49.2 r
     I            -2.6 r         -9.8 r         -7.4            4.5 r          3.2 r          7.3  

2019 ANNUAL        0.7            0.8            0.2            2.4            0.5            1.7  

2019 IV           -1.1           -1.5           -0.4            8.0            5.5            9.2  
     III           0.4            1.5            1.1           -3.2           -4.9           -3.6  
     II           -0.7           -2.3           -1.6            0.4           -2.5            1.1  
     I             0.3           -2.7           -3.0            6.9            5.9            6.6  

2018 ANNUAL        1.4            3.6            2.2            2.7            0.2            1.3  

2018 IV            1.8            5.0            3.1            1.5            0.3           -0.3  
     III           2.6            6.3            3.6            3.3            1.2            0.7  
     II            0.9            2.9            2.0           -2.8           -4.9           -3.7  
     I             1.7            4.8            3.1            2.7           -0.6            1.0  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2020 II           -8.3 r        -21.5 r        -14.4 r          4.5            4.0           13.9 r
     I            -1.0           -3.1           -2.1            2.4            0.2 r          3.4  

2019 ANNUAL        0.7            0.8            0.2            2.4            0.5            1.7  

2019 IV           -0.3           -1.3           -1.0            2.9            0.9            3.2  
     III           0.5            0.3           -0.1            1.4           -0.4            0.9  
     II            1.0            1.5            0.5            3.0            1.2            2.0  
     I             1.4            2.8            1.4            2.2            0.5            0.7  

2018 ANNUAL        1.4            3.6            2.2            2.7            0.2            1.3  

2018 IV            1.8            4.8            2.9            1.1           -1.0           -0.6  
     III           2.3            4.8            2.5            2.4           -0.2            0.2  
     II            0.5            2.7            2.2            2.2           -0.4            1.7  
     I             1.0            2.2            1.2            4.9            2.6            3.9  
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2020 II           92.4 r         84.1 r         91.1 r        121.2 r        108.4 r        131.2 r
     I            99.9 r        104.5 r        104.5          118.6 r        105.1 r        118.7 r

2019 ANNUAL      100.8          107.4          106.6          116.0          104.0          115.2  

2019 IV          100.6          107.2          106.6          117.3          104.3          116.6  
     III         100.9          107.6          106.7          115.1          102.9          114.1  
     II          100.7          107.2          106.4          116.0          104.2          115.1  
     I           100.9          107.8          106.8          115.9          104.8          114.8  

2018 ANNUAL      100.1          106.6          106.4          113.4          103.5          113.2  

2018 IV          100.8          108.5          107.6          113.9          103.3          113.0  
     III         100.4          107.2          106.8          113.5          103.3          113.1  
     II           99.7          105.6          105.9          112.6          103.0          112.9  
     I            99.5          104.8          105.4          113.4          104.3          114.0  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                  September 3, 2020
r=revised                                                        Source: Bureau of Labor Statistics



Table 5. Nondurable manufacturing sector: Labor productivity, hourly compensation, and unit labor
costs, seasonally adjusted.
                                                                             Real
Year              Labor                                       Hourly         hourly          Unit
and               produc-                      Hours          compensa-      compensa-       labor
quarter           tivity        Output         worked         tion (1)       tion (2)        costs
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate (5)

2020 II           -5.1 r        -33.5 r        -30.0 r         14.6 r         18.8 r         20.7 r
     I             6.2 r         -0.6 r         -6.4            9.0 r          7.7 r          2.6 r

2019 ANNUAL       -0.4           -0.9           -0.5            3.9            2.1            4.4  

2019 IV           -0.8            1.2            2.1            0.2           -2.1            1.1  
     III          -1.8            0.2            2.0            0.7           -1.1            2.4  
     II           -4.4           -4.0            0.5            3.7            0.6            8.5  
     I             2.5           -0.7           -3.2            7.0            6.0            4.3  

2018 ANNUAL       -0.8            0.5            1.4            1.0           -1.4            1.8  

2018 IV            1.4           -2.0           -3.3            6.4            5.1            4.9  
     III          -2.4            1.4            3.9            4.3            2.2            6.9  
     II            1.9            2.0            0.1           -4.8           -6.8           -6.5  
     I            -1.6           -1.6            0.0            1.7           -1.5            3.3  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2020 II           -0.4 r         -9.5           -9.1 r          6.0 r          5.5 r          6.4 r
     I            -0.3 r         -0.8 r         -0.5            3.3 r          1.2 r          3.6 r

2019 ANNUAL       -0.4           -0.9           -0.5            3.9            2.1            4.4  

2019 IV           -1.2           -0.8            0.3            2.8            0.8            4.0  
     III          -0.6           -1.6           -1.0            4.4            2.6            5.0  
     II           -0.8           -1.3           -0.6            5.3            3.4            6.1  
     I             0.8            0.2           -0.7            3.1            1.5            2.3  

2018 ANNUAL       -0.8            0.5            1.4            1.0           -1.4            1.8  

2018 IV           -0.2           -0.1            0.1            1.8           -0.4            2.0  
     III          -0.1            1.5            1.6            0.7           -1.9            0.8  
     II           -1.2            0.3            1.6            0.3           -2.4            1.5  
     I            -1.8            0.4            2.3            1.2           -1.0            3.1  
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2020 II           97.1 r         93.2 r         96.0 r        121.4 r        108.5 r        125.0 r
     I            98.4 r        103.2 r        104.9          117.3 r        104.0 r        119.3 r

2019 ANNUAL       97.5          103.3          106.0          114.4          102.6          117.3  

2019 IV           96.9          103.4          106.7          114.8          102.0          118.5  
     III          97.1          103.0          106.1          114.7          102.6          118.2  
     II           97.5          103.0          105.6          114.6          102.9          117.5  
     I            98.6          104.0          105.5          113.5          102.7          115.1  

2018 ANNUAL       98.0          104.3          106.5          110.1          100.5          112.4  

2018 IV           98.0          104.2          106.3          111.6          101.2          113.9  
     III          97.7          104.7          107.2          109.9          100.0          112.5  
     II           98.3          104.4          106.2          108.8           99.5          110.7  
     I            97.8          103.9          106.2          110.1          101.2          112.5  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                  September 3, 2020
r=revised                                                        Source: Bureau of Labor Statistics



Table 6. Nonfinancial corporate sector: Labor productivity, hourly compensation, unit labor costs,
unit profits, and prices, seasonally adjusted.
                                                     Real
                                           Hourly    hourly            Unit      Total           Implicit
Year         Labor                         compen-   compen-   Unit    nonlabor  unit    Unit    price
and          produc-             Hours     sation    sation    labor   costs     costs   profits deflator
quarter      tivity    Output    worked    (1)       (2)       costs   (6)       (7)     (8)     (4)
---------------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate (5)

2020 II        3.1     -39.3    -41.1      27.1      31.7      23.3    -46.3     -3.3    -14.2     -4.5  
     I         0.2 r    -4.0 r   -4.2       8.1 r     6.8 r     7.9 r   10.3 r    8.7    -44.1 r    0.6  

2019 ANNUAL    0.6       1.6      0.9       3.7       1.9       3.1      1.9      2.7     -3.3      1.9  

2019 IV        1.3       2.6      1.2       2.5       0.1       1.2     -2.3      0.1     12.4      1.5  
     III      -0.8      -0.1      0.7       0.0      -1.7       0.9      6.6      2.6     -5.3      1.6  
     II        1.0       1.0      0.1       1.3      -1.7       0.3      1.5      0.7     16.1      2.4  
     I         1.4       2.9      1.5      11.1      10.1       9.5      3.3      7.5    -30.8      1.7  

2018 ANNUAL    0.6       2.6      1.9       3.5       1.0       2.8     -1.0      1.6      6.2      2.2  

2018 IV       -0.3       0.2      0.5       1.3       0.0       1.7      2.4      1.9      2.2      1.9  
     III       2.5       3.7      1.1       3.2       1.0       0.6     -1.9     -0.2     15.1      1.7  
     II       -2.2       0.2      2.5       0.1      -2.0       2.4     -0.2      1.6     15.2      3.2  
     I         4.7       6.7      1.8       8.6       5.1       3.7     -4.2      1.1      8.0      1.9  
---------------------------------------------------------------------------------------------------------
                       Percent change from corresponding quarter of previous year

2020 II        0.9     -12.1    -12.9       9.0       8.5       7.9    -11.3      1.9    -15.5     -0.2  
     I         0.4      -0.2 r   -0.6       2.9 r     0.8 r     2.5      3.9      3.0     -8.9      1.5  

2019 ANNUAL    0.6       1.6      0.9       3.7       1.9       3.1      1.9      2.7     -3.3      1.9  

2019 IV        0.7       1.6      0.9       3.6       1.6       2.9      2.2      2.7     -3.9      1.8  
     III       0.3       1.0      0.7       3.3       1.6       3.0      3.4      3.1     -6.1      1.9  
     II        1.1       1.9      0.8       4.1       2.3       2.9      1.3      2.4     -1.4      1.9  
     I         0.3       1.7      1.4       3.8       2.2       3.5      0.9      2.7     -1.6      2.1  

2018 ANNUAL    0.6       2.6      1.9       3.5       1.0       2.8     -1.0      1.6      6.2      2.2  

2018 IV        1.1       2.6      1.5       3.2       1.0       2.1     -1.0      1.1     10.0      2.2  
     III       1.0       3.0      2.0       3.6       0.9       2.6     -1.8      1.2     10.1      2.3  
     II       -0.2       1.9      2.1       3.5       0.8       3.7     -0.8      2.2      3.2      2.4  
     I         0.7       2.9      2.2       3.7       1.4       3.0     -0.3      1.9      1.4      1.9  
---------------------------------------------------------------------------------------------------------
                                            Indexes 2012=100

2020 II      103.6     102.5     98.9     130.9     117.0     126.3     94.4    115.7     81.4    110.8  
     I       102.9 r   116.1 r  112.9     123.3 r   109.2 r   119.8 r  110.3 r  116.7 r   84.5 r  112.1 r

2019 ANNUAL  102.6     116.7    113.7     120.2     107.8     117.2    107.1    113.8     95.4    111.2  

2019 IV      102.8     117.3    114.1     120.9     107.4     117.6    107.6    114.3     97.8    111.9  
     III     102.5     116.6    113.7     120.1     107.4     117.2    108.2    114.2     95.0    111.5  
     II      102.7     116.6    113.6     120.1     107.9     117.0    106.5    113.5     96.3    111.0  
     I       102.4     116.3    113.5     119.7     108.4     116.9    106.1    113.3     92.7    110.4  

2018 ANNUAL  102.0     114.9    112.7     115.9     105.8     113.7    105.1    110.8     98.7    109.1  

2018 IV      102.1     115.5    113.1     116.6     105.8     114.3    105.3    111.3    101.7    109.9  
     III     102.2     115.4    113.0     116.3     105.8     113.8    104.7    110.8    101.1    109.4  
     II      101.5     114.4    112.7     115.4     105.5     113.6    105.2    110.8     97.6    108.9  
     I       102.1     114.3    112.0     115.3     106.0     112.9    105.2    110.4     94.2    108.1  
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                        September 3, 2020
r=revised                                                              Source: Bureau of Labor Statistics



SOURCES: Output data are from the Bureau of Economic Analysis and the Census Bureau of
the U.S. Department of Commerce; the Bureau of Labor Statistics, U.S. Department of Labor; 
and the Federal Reserve Board. Hours and compensation data are from the Bureau of Labor
Statistics and the Bureau of Economic Analysis.

RELIABILITY: Productivity and cost measures are regularly revised as more complete 
information becomes available.  The measures are first published within 40 days of the
close of the reference period; revisions appear 30 days later, and second revisions after
an additional 60 days.  In the business sector, the third publication (second revision) of
a quarterly index of output per hour of all persons has differed from the initial value by
between -1.4 and 1.4 index points approximately 95 percent of the time. This interval is 
based on the performance of this measure between the fourth quarter of 1995 and the first
quarter of 2020.
					
				    Table Footnotes

(1) Wages and salaries of employees plus employers' contributions for social insurance and
private benefit plans. Except for nonfinancial corporations, where there are no self-employed, 
data also include an estimate of wages, salaries, and supplemental payments for the self-
employed.

(2) The change for recent quarters is based on the Consumer Price Index for all urban consumers 
(CPI-U). The trend from 1978-2019 is based on the Consumer Price Index research series (CPI-
U-RS).

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

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

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

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

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

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





Last Modified Date: September 03, 2020