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information: (202) 691-5606 MATERIAL IS EMBARGOED
Current data: (202) 691-5200 UNTIL 8:30 A.M. EDT,
Media contact: (202) 691-5902 THURSDAY, SEPTEMBER 4, 2008.
PRODUCTIVITY AND COSTS
Second Quarter 2008, Revised
The Bureau of Labor Statistics of the U.S. Department of Labor today
reported revised productivity data--as measured by output per hour of all
persons--for the second quarter of 2008. The seasonally adjusted annual
rates of productivity change in the second quarter were:
4.3 percent in the business sector and
4.3 percent in the nonfarm business sector.
In both sectors, the second-quarter productivity gains were larger than the
preliminary estimates reported on August 8.
In manufacturing, the revised productivity changes in the second quarter
were:
-2.2 percent in manufacturing,
-4.5 percent in durable goods manufacturing, and
0.2 percent in nondurable goods manufacturing.
Manufacturing productivity decreased faster in the second quarter of
2008 than was reported on August 8, reflecting downward revisions to output
per hour in both durable and nondurable manufacturing. Output and hours in
manufacturing, which includes about 12 percent of U.S. business-sector
employment, tend to vary more from quarter to quarter than data for the
aggregate business and nonfarm business sectors. Second-quarter measures are
summarized in table A and appear in detail in tables 1 through 5; the
differences between these measures and the preliminary second-quarter figures
issued on August 8 are shown in table C.
The data sources and methods used in the preparation of the
manufacturing series differ from those used in preparing the business and
nonfarm business series, and these measures are not directly comparable.
Output measures for business and nonfarm business are based on measures of
gross domestic product prepared by the Bureau of Economic Analysis of the
U.S. Department of Commerce. Quarterly output measures for manufacturing
reflect indexes of industrial production independently prepared by the Board
of Governors of the Federal Reserve System. See Technical Notes for further
information on data sources.
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Table A. Productivity and costs: Revised second-quarter 2008 measures
(Seasonally adjusted annual rates)
------------------------------------------------------------------------------
Real
Hourly hourly Unit
Produc- compen- compen- labor
Sector tivity Output Hours sation sation costs
------------------------------------------------------------------------------
Percent change from preceding quarter
Business 4.3 3.2 -1.0 4.0 -1.0 -0.4
Nonfarm business 4.3 3.4 -0.8 3.7 -1.3 -0.5
Manufacturing -2.2 -3.7 -1.5 3.9 -1.1 6.2
Durable -4.5 -5.9 -1.5 4.1 -0.8 9.0
Nondurable 0.2 -1.3 -1.6 3.3 -1.6 3.1
------------------------------------------------------------------------------
Percent change from same quarter a year ago
Business 3.2 2.2 -1.0 3.9 -0.4 0.7
Nonfarm business 3.4 2.2 -1.1 4.0 -0.2 0.6
Manufacturing 2.4 -0.2 -2.5 3.8 -0.4 1.4
Durable 2.4 0.1 -2.3 3.4 -0.8 1.0
Nondurable 2.5 -0.6 -3.0 4.5 0.2 1.9
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Business
Labor productivity in the business sector grew 4.3 percent from the
first quarter to the second quarter of 2008, as output increased 3.2 percent
and hours worked by all persons engaged in the sector--employees,
proprietors, and unpaid family workers--fell 1.0 percent (seasonally adjusted
annual rates). Output per hour increased 3.2 percent over the past four
quarters, reflecting a 2.2 percent increase in output and a 1.0 percent
decrease in hours (tables A and 1). The four-quarter decline in hours was
the largest since a 1.3 percent decline for the period ending with the second
quarter of 2003.
Hourly compensation in the business sector grew at a 4.0 percent annual
rate in the second quarter of 2008. Hourly compensation includes wages and
salaries, supplements, employer contributions to employee benefit plans, and
taxes. Real hourly compensation, which takes into account changes in
consumer prices, declined 1.0 percent in the second quarter of 2008 after
falling 0.6 percent in the first quarter of the year.
Unit labor costs, which reflect changes in hourly compensation and
productivity, decreased 0.4 percent in the second quarter of 2008. From the
second quarter of 2007 to the second quarter of 2008 these costs increased
0.7 percent. The implicit price deflator for business output, which exhibits
changes in unit labor costs and unit nonlabor payments, rose 0.9 percent in
the second quarter of 2008.
Nonfarm business
Productivity in the nonfarm business sector grew at a 4.3 percent annual
rate in the second quarter of 2008, reflecting an increase of 3.4 percent in
output and a decrease of 0.8 percent in hours of all persons (tables A and
2). From the second quarter of 2007 to the second quarter of 2008, nonfarm
business productivity grew 3.4 percent, faster than the 2.5 percent average
rate from 2000 to 2007. Hours decreased 1.1 percent over the past four
quarters--the largest four-quarter decline since a 2.1 percent decline for
the period ending in the third quarter of 2002.
Hourly compensation increased 3.7 percent in the second quarter of 2008,
but when the 5.0 percent increase in consumer prices was taken into account,
real hourly compensation declined 1.3 percent.
Unit labor costs declined 0.5 percent in the second quarter of 2008, but
rose 0.6 percent over the last four quarters. The implicit price
deflator for nonfarm business output rose 0.9 percent in the second quarter.
Manufacturing
Productivity decreased 2.2 percent in manufacturing in the second
quarter of 2008, as output fell 3.7 percent and hours of all persons fell 1.5
percent (seasonally adjusted annual rates). This was the largest quarterly
decline in manufacturing productivity since a 2.5 percent decrease in the
second quarter of 1989; it was concentrated in the durable goods sector,
where productivity declined 4.5 percent. In nondurable goods, productivity
edged up 0.2 percent as output and hours fell 1.3 percent and 1.6 percent,
respectively (tables A, 3, 4, and 5).
The hourly compensation of all manufacturing workers increased 3.9
percent during the second quarter of 2008, reflecting increases in hourly
compensation of 4.1 percent in durable goods industries and 3.3 percent in
the nondurable goods sector. Real hourly compensation in the total
manufacturing sector fell 1.1 percent in the second quarter after consumer
prices were taken into account.
Unit labor costs in manufacturing increased 6.2 percent in the second
quarter of 2008, as unit labor costs jumped 9.0 percent in durable goods
industries and increased 3.1 percent in nondurable goods industries.
Nonfinancial corporations
Preliminary second-quarter 2008 measures of productivity and costs were
reported today for nonfinancial corporations. Productivity increased 5.6
percent during the second quarter, reflecting a 3.8 percent rise in output
and a 1.7 percent fall in employee hours (tables B and 6). Over the last
four quarters output per hour increased 2.3 percent, output increased 1.7
percent, and hours worked declined 0.5 percent--the first decline in hours
since the four quarters ending with fourth-quarter 2003, when hours declined
0.9 percent. Nonfinancial corporations include all corporations doing
business in the United States except those classified as depository
institutions, nondepository institutions, security and commodity brokers,
insurance carriers, regulated investment offices, small business investment
offices, and real estate investment trusts.
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Table B. Nonfinancial corporations: Preliminary second-quarter 2008
productivity and cost measures
(Seasonally adjusted annual rates)
------------------------------------------------------------------------------
Real
Hourly hourly Unit Implicit
Produc- compen- compen- labor Unit price
Period tivity Output Hours sation sation costs profits deflator
------------------------------------------------------------------------------
Percent change from preceding quarter
2008 II 5.6 3.8 -1.7 3.7 -1.2 -1.8 -24.7 -3.6
------------------------------------------------------------------------------
Percent change from same quarter a year ago
2008 II 2.3 1.7 -0.5 3.8 -0.4 1.5 -18.8 -0.9
------------------------------------------------------------------------------
Hourly compensation rose 3.7 percent in the second quarter of 2008, but
when the rise in consumer prices is taken into account, real hourly
compensation fell 1.2 percent. Unit labor costs for nonfinancial
corporations decreased 1.8 percent in the second quarter of 2008.
Unit profits fell 24.7 percent in the second quarter of 2008. This was
the fourth consecutive double-digit decline in this measure (table 6). The
implicit price deflator for nonfinancial corporate output fell 3.6 percent in
the second quarter and 0.9 percent over the past four quarters.
Revised Measures
Current and previous measures for the first and second quarters of 2008
for the business, nonfarm business, and manufacturing sectors are compared in
table C.
In the second quarter of 2008, productivity was revised up in the
business and nonfarm business sectors, as output was revised up significantly
and hours decreased more than previously reported. In both of these sectors
the upward revisions to productivity were much larger than those to hourly
compensation, and unit labor costs were revised down.
Productivity was revised down in the manufacturing sector in the second
quarter of 2008 due to both a downward revision to output and an upward
revision to hours. The downward revision to productivity was largely offset
by a downward revision to hourly compensation, so unit labor costs rose only
slightly more than previously reported.
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Table C. Business, nonfarm business, and manufacturing: Previous and revised
productivity and related measures
(Quarterly percent changes at seasonally adjusted annual rates)
------------------------------------------------------------------------------
Real
Hourly hourly Unit
Produc- compen- compen- labor
Sector tivity Output Hours sation sation costs
------------------------------------------------------------------------------
Second quarter 2008
Business:
Previous 2.3 1.5 -0.7 3.8 -1.2 1.5
Revised 4.3 3.2 -1.0 4.0 -1.0 -0.4
Nonfarm business:
Previous 2.2 1.7 -0.5 3.6 -1.4 1.3
Revised 4.3 3.4 -0.8 3.7 -1.3 -0.5
Manufacturing:
Previous -1.4 -3.5 -2.0 4.6 -0.4 6.1
Revised -2.2 -3.7 -1.5 3.9 -1.1 6.2
First quarter 2008
Business:
Previous 2.2 0.7 -1.5 5.0 0.6 2.7
Revised 2.3 0.7 -1.6 3.6 -0.6 1.3
Nonfarm business:
Previous 2.6 0.9 -1.6 5.2 0.8 2.5
Revised 2.6 0.9 -1.7 3.8 -0.4 1.2
Manufacturing:
Previous 3.4 -0.8 -4.0 6.2 1.8 2.8
Revised 3.3 -0.9 -4.0 3.8 -0.5 0.5
------------------------------------------------------------------------------
In the first quarter of 2008, hourly compensation was updated to reflect
revised estimates of compensation released by the Bureau of Economic Analysis
of the U.S. Department of Commerce August 28. As revised, hourly
compensation increased 3.6 percent in the business sector, and 3.8 percent in
both the nonfarm business and manufacturing sectors. In all of the major
sectors, hourly compensation grew more slowly in the first quarter than BLS
reported August 8, therefore unit labor costs in these sectors rose less than
in preliminary estimates.
Revised Measures: Nonfinancial Corporations
Data for the first quarter of 2008 were also revised for the
nonfinancial corporate sector (table D). Productivity was revised down along
with output; hours were not revised. Hourly compensation was revised down
more than productivity; revised unit labor costs increased 3.2 percent,
rather than 3.9 percent as reported August 8.
------------------------------------------------------------------------------
Table D. Nonfinancial corporations: Previous and revised productivity and
cost measures
(Quarterly percent changes at seasonally adjusted annual rates)
------------------------------------------------------------------------------
Real
Hourly hourly Unit Implicit
Produc- compen- compen- labor Unit price
tivity Output Hours sation sation costs profits deflator
------------------------------------------------------------------------------
First quarter 2008
Previous 1.0 -0.1 -1.1 4.9 0.6 3.9 -14.7 0.5
Revised -0.2 -1.4 -1.1 2.9 -1.3 3.2 -13.6 0.5
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Next release date
The next release of Productivity and Costs is scheduled for 8:30 AM EST,
Thursday, November 6, 2008. Preliminary third-quarter measures for business,
nonfarm business, and manufacturing will be released at that time.
TECHNICAL NOTES
Labor Hours: Hours data for the labor productivity and cost measures include
hours for all persons working in the sector-wage and salary workers, the
self-employed and unpaid family workers. The primary source of hours and
employment data is the BLS Current Employment Statistics (CES) program, which
provides monthly survey data on the number of jobs held by wage and salary
workers in nonfarm establishments. The CES also provides average weekly paid
hours of production and nonsupervisory workers in these establishments.
Weekly paid hours are adjusted to hours at work using data from the National
Compensation Survey (NCS). The BLS Hours at Work survey, conducted for this
purpose, was used for earlier years. The Office of Productivity and
Technology estimates average weekly hours at work for nonproduction and
supervisory workers using information from the Current Population Survey
(CPS), the CES, and the NCS.
Data from the CPS are used for farm labor, nonfarm proprietors, and
nonfarm unpaid family workers. Estimates of labor input for government
enterprises are derived from the CPS, the CES, and the National Income and
Product Accounts (NIPA) prepared by the Bureau of Economic Analysis (BEA) of
the Department of Commerce.
The CES measures jobs, counting a person who is employed by two or more
establishments at each place of employment. In contrast, the CPS features
measures of employment that count each person only once and classify each
person according to his or her primary job; hours worked at all jobs by that
person accrue to his or her primary job. However, the CPS also collects more
detailed information on employment and hours worked at primary jobs and all
other jobs, separately. The BLS productivity measures use the more detailed
information on employment and hours to assign all hours worked to the correct
industrial sector and avoid duplicating hours data from the CES.
Output: Business sector output is a chain-type, current-weighted index
constructed after excluding from gross domestic product (GDP) the following
outputs: general government, nonprofit institutions, and private households
(including owner-occupied housing). Corresponding exclusions also are made in
labor inputs. Business output accounted for about 78 percent of the value of
GDP in 2000. Nonfarm business, which excludes farming, accounted for about 77
percent of GDP in 2000.
Annual indexes for manufacturing and its durable and nondurable goods
components are constructed by deflating current-dollar industry value of
production data from the U.S. Bureau of the Census with deflators from the
BLS. These deflators are based on data from the BLS producer price program
and other sources. The industry shipments are aggregated using annual
weights, and intrasector transactions are removed. Quarterly manufacturing
output measures are based on the index of industrial production prepared
monthly by the Board of Governors of the Federal Reserve System, adjusted to
be consistent with annual indexes of manufacturing sector output prepared by
BLS. Durables include the following 3-digit NAICS industries: wood product
manufacturing; nonmetallic mineral product manufacturing; primary metal
manufacturing; fabricated metal product manufacturing; machinery
manufacturing; computer and electronic product manufacturing; electrical
equipment and appliance manufacturing; transportation equipment
manufacturing; furniture and related product manufacturing; and miscellaneous
manufacturing. Nondurables include: food manufacturing; beverage and tobacco
product manufacturing; textile mills; textile product mills; apparel
manufacturing; leather and allied product manufacturing; paper manufacturing;
printing and related support activities; petroleum and coal products
manufacturing; chemical manufacturing; and plastics and rubber products
manufacturing.
Nonfinancial corporate output is a chain-type, current-weighted index
calculated on the basis of the costs incurred and the incomes earned from
production. The output measure excludes the following outputs from GDP:
general government; nonprofit institutions; private households;
unincorporated business; and those corporations classified as offices of bank
holding companies, offices of other holding companies, or offices in the
finance and insurance sector. Nonfinancial corporations accounted for about
54 percent of the value of GDP in 2000.
Productivity: These productivity measures describe the relationship between
real output and the labor time involved in its production. They show the
changes from period to period in the amount of goods and services produced
per hour. Although these measures relate output to hours at work of all
persons engaged in a sector, they do not measure the specific contribution of
labor, capital, or any other factor of production. Rather, they reflect the
joint effects of many influences, including changes in technology; capital
investment; level of output; utilization of capacity, energy, and materials;
the organization of production; managerial skill; and the characteristics and
effort of the work force.
Labor Compensation: Estimates of labor compensation by major sector, required
for measures of hourly compensation and unit labor costs, are based primarily
on employee compensation data from the NIPA, prepared by the BEA. The
compensation of employees in general government, nonprofit institutions and
private households are subtracted from compensation of domestic employees to
derive employee compensation for the business sector. The labor compensation
of proprietors cannot be explicitly identified and must be estimated. This
is done by assuming that proprietors have the same hourly compensation as
employees in the same sector. The quarterly labor productivity and cost
measures do not contain estimates of compensation for unpaid family workers.
Unit Labor Costs: The measures of unit labor costs in this release describe
the relationship between compensation per hour and productivity, or real
output per hour, and can be used as an indicator of inflationary pressure on
producers. Increases in hourly compensation increase unit labor costs; labor
productivity increases offset compensation increases and lower unit labor
costs.
Presentation of the data: The quarterly data in this release are presented
in three ways; as index number series where 1992=100, as percent changes from
the corresponding quarter of the previous year, and as percent changes from
the previous quarter presented at a compound annual rate. Annual data are
presented both as index number series and percent changes from the previous
year.
The index numbers and rates of change reported in the productivity and
costs news release are rounded to one decimal place. All percent changes in
this release and on the BLS web site are calculated using index numbers to
three decimal places. These index numbers are available at the BLS web site,
http://www.bls.gov/data/home.htm, or by contacting the BLS Division of Major
Sector Productivity. (Telephone 202-691-5606 or email DPRWEB@BLS.GOV)
Information in this release will be made available to sensory-impaired
individuals upon request. Voice phone: 202-691-5606; Federal Relay Service
number: 1-800-877-8339.
Table 1. Business sector: Productivity, hourly compensation, unit labor costs, and prices, seasonally adjusted
Real
Year Output per Hours Compensa- compensa- Unit Unit non- Implicit
and hour of of all tion per tion per labor labor pay- price
quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4)
---------------------------------------------------------------------------------------------------------
Indexes 1992=100
2006 I r136.1 162.8 r119.6 r168.0 r120.7 r123.5 r133.4 127.2
II r136.6 164.0 r120.1 r168.1 r119.7 r123.1 r136.2 128.0
III r135.9 164.1 r120.8 r169.0 r119.1 r124.3 r136.2 128.8
IV r135.9 164.8 r121.2 r172.6 r122.1 r127.0 r133.4 129.4
ANNUAL r136.1 163.9 r120.4 r169.5 r120.4 r124.5 r134.8 128.3
2007 I r135.9 164.5 r121.0 r174.7 r122.4 128.5 134.3 130.7
II r137.6 166.8 r121.2 r175.5 r121.6 r127.5 r137.4 131.2
III r139.7 169.0 r121.0 r177.0 r121.9 r126.7 r139.7 131.6
IV r139.7 168.8 r120.8 r178.9 r121.7 r128.1 r139.2 132.2
ANNUAL 138.2 167.3 121.0 176.5 121.9 127.7 137.7 131.4
2008 I 140.5 169.1 120.3 r180.6 r121.5 r128.5 r140.2 132.9
II r142.0 r170.4 r120.0 r182.3 r121.2 r128.4 r141.3 r133.2
---------------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2006 I 2.6 5.6 3.0 5.5 3.6 2.8 3.1 3.0
II 1.4 2.9 1.5 0.2 -3.3 -1.2 8.6 2.6
III -2.0 0.3 2.4 2.0 -1.9 4.1 -0.1 2.4
IV 0.2 1.7 1.5 9.0 r10.6 8.8 -8.0 1.9
ANNUAL 0.9 3.0 2.1 3.8 0.5 2.9 3.3 3.0
2007 I r-0.1 -0.7 r-0.6 4.8 1.1 4.8 2.8 4.0
II 5.0 5.6 0.6 1.9 -2.6 -2.9 9.6 1.7
III 6.2 5.5 -0.7 3.6 0.8 r-2.5 6.9 1.1
IV 0.1 -0.6 -0.7 4.4 -0.6 4.3 -1.6 2.0
ANNUAL 1.5 2.0 0.5 4.2 1.3 2.6 2.1 2.4
2008 I r2.3 0.7 r-1.6 r3.6 r-0.6 r1.3 r3.1 2.0
II r4.3 r3.2 r-1.0 r4.0 r-1.0 r-0.4 r3.0 r0.9
---------------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2006 I 1.3 3.6 2.3 r4.3 0.5 2.9 3.9 3.3
II 1.7 3.5 1.8 4.0 0.1 2.3 5.2 3.4
III 0.2 2.4 2.2 2.9 -0.4 2.7 3.5 3.0
IV 0.5 2.6 2.1 4.1 2.1 3.6 0.7 2.5
ANNUAL 0.9 3.0 2.1 3.8 0.5 2.9 3.3 3.0
2007 I -0.1 1.0 1.2 3.9 1.5 4.1 0.7 2.7
II r0.7 1.7 r1.0 4.4 1.7 3.6 0.9 2.5
III 2.8 3.0 0.2 4.8 2.4 1.9 2.6 2.2
IV 2.8 2.4 r-0.3 3.7 -0.3 0.9 4.3 2.2
ANNUAL 1.5 2.0 0.5 4.2 1.3 2.6 2.1 2.4
2008 I 3.4 2.8 -0.6 r3.4 r-0.7 r0.0 r4.4 1.7
II r3.2 r2.2 r-1.0 r3.9 r-0.4 r0.7 r2.8 r1.5
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6. September 4, 2008
r=revised Source: Bureau of Labor Statistics
Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs, and prices,
seasonally adjusted
Real
Year Output per Hours Compensa- compensa- Unit Unit non- Implicit
and hour of of all tion per tion per labor labor pay- price
quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4)
---------------------------------------------------------------------------------------------------------
Indexes 1992=100
2006 I r135.1 163.2 r120.8 r166.8 r119.8 r123.5 r135.5 127.9
II r135.7 164.3 r121.1 r167.1 r118.9 r123.2 r138.6 128.8
III r135.0 164.4 r121.8 r167.9 r118.3 r124.4 r138.3 129.5
IV r135.0 165.0 r122.2 r171.7 r121.4 r127.1 r134.8 130.0
ANNUAL r135.2 164.2 r121.5 r168.4 r119.6 r124.6 r136.8 129.1
2007 I r135.0 164.7 r122.0 r173.7 r121.8 128.7 r135.2 131.1
II r136.4 167.0 r122.4 r174.1 r120.7 r127.7 r138.2 131.5
III r138.3 169.2 r122.3 r175.5 r120.8 r126.9 r140.3 131.8
IV r138.6 168.9 r121.9 r177.8 r120.9 r128.3 r139.8 132.5
ANNUAL 137.1 167.5 122.2 175.3 121.1 127.9 138.4 131.7
2008 I 139.5 169.3 121.4 r179.5 r120.8 r128.7 r141.0 133.2
II r141.0 r170.7 r121.1 r181.1 r120.4 r128.5 r142.2 r133.5
---------------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2006 I 2.5 6.0 3.3 5.2 3.3 2.6 3.9 3.1
II 1.8 2.9 1.1 0.7 -2.8 -1.1 9.4 2.9
III -2.1 0.3 2.4 r1.9 -2.0 4.1 -0.9 2.1
IV 0.2 1.4 1.2 r9.3 11.0 9.1 -9.5 1.5
ANNUAL 1.0 3.2 2.2 3.8 0.5 2.8 3.6 3.1
2007 I 0.0 -0.9 r-0.8 4.9 1.2 4.9 0.9 3.4
II 4.1 5.8 1.6 0.8 -3.6 -3.2 9.4 1.5
III 5.8 5.5 -0.3 3.3 0.5 -2.4 6.3 0.9
IV 0.8 -0.7 -1.6 r5.3 r0.3 4.5 r-1.5 2.1
ANNUAL 1.4 2.0 0.5 4.1 1.3 2.7 1.2 2.1
2008 I 2.6 0.9 r-1.7 r3.8 r-0.4 r1.2 r3.6 2.1
II r4.3 r3.4 r-0.8 r3.7 r-1.3 r-0.5 r3.3 r0.9
---------------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2006 I 1.3 3.7 2.4 4.2 0.5 2.9 4.3 3.4
II 1.7 3.7 2.0 3.9 0.0 2.2 5.9 3.6
III 0.3 2.6 2.3 2.9 -0.5 2.6 3.8 3.1
IV 0.6 2.6 2.0 4.3 2.2 3.6 0.5 2.4
ANNUAL 1.0 3.2 2.2 3.8 0.5 2.8 3.6 3.1
2007 I 0.0 0.9 r1.0 4.2 1.7 4.2 -0.2 2.5
II 0.5 1.6 1.1 4.2 1.5 3.7 -0.2 2.1
III 2.5 2.9 0.4 r4.5 r2.1 2.0 1.5 1.8
IV 2.7 2.4 -0.3 3.6 -0.4 0.9 3.7 2.0
ANNUAL 1.4 2.0 0.5 4.1 1.3 2.7 1.2 2.1
2008 I 3.3 2.8 -0.5 r3.3 r-0.8 r0.0 r4.3 1.6
II r3.4 r2.2 r-1.1 r4.0 r-0.2 r0.6 r2.9 r1.5
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6. September 4, 2008
r=revised Source: Bureau of Labor Statistics
Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
Real
Year Output per Hours Compensa- compensa- Unit
and hour of of all tion per tion per labor
quarter all persons Output persons hour (1) hour (2) costs
--------------------------------------------------------------------------------------------------
Indexes 1992=100
2006 I 172.6 147.2 85.3 170.9 122.7 99.0
II 172.7 147.4 85.4 169.5 120.7 98.2
III 174.5 148.0 84.8 170.3 120.0 97.6
IV 175.4 147.4 84.0 174.6 123.5 99.5
ANNUAL 173.8 147.5 84.9 171.3 121.7 98.6
2007 I 177.0 147.8 83.5 176.9 124.0 100.0
II 178.7 149.6 83.7 176.4 122.3 98.7
III 180.6 151.2 83.7 176.4 121.4 97.6
IV 182.5 151.0 82.8 179.7 122.2 98.5
ANNUAL 179.7 149.9 83.4 177.3 122.5 98.7
2008 I r184.0 r150.7 81.9 r181.4 r122.1 r98.6
II r183.0 r149.3 r81.6 r183.1 r121.7 r100.1
--------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2006 I -0.6 1.8 2.4 14.3 12.3 15.0
II 0.2 0.6 0.4 -3.1 -6.5 -3.3
III 4.3 1.6 -2.5 1.8 -2.1 -2.3
IV 2.2 -1.7 -3.8 10.4 12.1 8.0
ANNUAL 1.1 1.8 0.8 4.1 0.8 3.0
2007 I 3.6 1.2 -2.3 5.5 1.8 1.8
II 3.8 4.9 1.0 -1.1 -5.5 -4.8
III 4.5 4.3 -0.2 -0.1 -2.8 -4.4
IV 4.2 -0.4 -4.4 7.8 2.7 3.4
ANNUAL 3.4 1.6 -1.7 3.5 0.7 0.1
2008 I r3.3 r-0.9 -4.0 r3.8 r-0.5 r0.5
II r-2.2 r-3.7 r-1.5 r3.9 r-1.1 r6.2
--------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2006 I 1.5 2.4 0.9 5.4 1.6 3.8
II 0.4 2.1 1.7 3.3 -0.6 2.9
III 0.9 2.3 1.4 2.3 -1.0 1.4
IV 1.5 0.6 -0.9 5.6 3.6 4.1
ANNUAL 1.1 1.8 0.8 4.1 0.8 3.0
2007 I 2.6 0.4 -2.1 3.5 1.1 0.9
II 3.5 1.5 -1.9 4.1 1.4 0.6
III 3.5 2.1 -1.3 3.6 1.2 0.0
IV 4.0 2.5 -1.5 2.9 -1.0 -1.1
ANNUAL 3.4 1.6 -1.7 3.5 0.7 0.1
2008 I r3.9 r1.9 -1.9 r2.5 r-1.6 r-1.4
II r2.4 r-0.2 r-2.5 r3.8 r-0.4 r1.4
--------------------------------------------------------------------------------------------------
See footnotes following Table 6. September 4, 2008
r=revised Source: Bureau of Labor Statistics
Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
Real
Year Output per Hours Compensa- compensa- Unit
and hour of of all tion per tion per labor
quarter all persons Output persons hour (1) hour (2) costs
--------------------------------------------------------------------------------------------------
Indexes 1992=100
2006 I 198.8 179.6 90.3 166.0 119.2 83.5
II 198.9 180.5 90.7 164.6 117.1 82.7
III 201.7 181.1 89.8 165.3 116.5 81.9
IV 202.4 180.1 89.0 170.2 120.4 84.1
ANNUAL 200.4 180.3 90.0 166.5 118.3 83.1
2007 I 204.4 180.3 88.2 173.0 121.3 84.7
II 207.9 183.9 88.4 172.5 119.6 83.0
III 210.9 186.9 88.6 172.2 118.6 81.7
IV 214.3 187.0 87.3 175.5 119.4 81.9
ANNUAL 209.4 184.5 88.1 173.3 119.7 82.8
2008 I r215.4 r186.8 86.7 r176.6 r118.9 r82.0
II r213.0 r184.0 r86.4 r178.4 r118.6 r83.8
--------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2006 I -1.8 0.4 2.3 13.7 11.7 15.9
II 0.3 2.1 1.8 -3.3 -6.6 -3.6
III 5.7 1.2 -4.3 1.6 -2.3 -3.9
IV 1.4 -2.1 -3.4 12.6 14.4 11.1
ANNUAL 2.2 3.3 1.1 3.9 0.6 1.7
2007 I 3.9 0.4 -3.4 6.7 3.0 2.7
II 7.1 8.2 1.0 -1.2 -5.5 -7.7
III 6.0 6.8 0.8 -0.7 -3.3 -6.2
IV 6.6 0.3 -6.0 7.9 2.8 1.2
ANNUAL 4.5 2.3 -2.0 4.1 1.3 -0.3
2008 I r2.0 r-0.5 -2.5 r2.5 r-1.7 r0.4
II r-4.5 r-5.9 r-1.5 r4.1 r-0.8 r9.0
--------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2006 I 3.2 4.8 1.6 4.9 1.1 1.6
II 2.0 4.6 2.5 3.1 -0.8 1.1
III 2.2 3.6 1.4 1.9 -1.5 -0.4
IV 1.4 0.4 -1.0 5.9 3.9 4.5
ANNUAL 2.2 3.3 1.1 3.9 0.6 1.7
2007 I 2.8 0.4 -2.4 4.3 1.8 1.4
II 4.5 1.8 -2.5 4.8 2.1 0.3
III 4.6 3.2 -1.3 4.2 1.8 -0.3
IV 5.9 3.9 -1.9 3.1 -0.8 -2.6
ANNUAL 4.5 2.3 -2.0 4.1 1.3 -0.3
2008 I 5.4 3.6 -1.7 r2.1 r-2.0 r-3.2
II r2.4 r0.1 r-2.3 r3.4 r-0.8 r1.0
--------------------------------------------------------------------------------------------------
See footnotes following Table 6. September 4, 2008
r=revised Source: Bureau of Labor Statistics
Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
Real
Year Output per Hours Compensa- compensa- Unit
and hour of of all tion per tion per labor
quarter all persons Output persons hour (1) hour (2) costs
--------------------------------------------------------------------------------------------------
Indexes 1992=100
2006 I 148.0 115.0 77.7 178.0 127.8 120.2
II 148.4 114.8 77.3 176.6 125.7 119.0
III 149.0 115.4 77.4 177.8 125.3 119.3
IV 150.3 115.1 76.6 180.4 127.6 120.0
ANNUAL 148.9 115.1 77.2 178.2 126.6 119.6
2007 I 151.2 115.6 76.5 181.9 127.5 120.3
II 151.4 116.0 76.6 181.4 125.8 119.9
III 152.7 116.4 76.3 181.8 125.2 119.1
IV 152.9 116.1 75.9 185.3 126.0 121.2
ANNUAL 152.0 116.0 76.3 182.6 126.1 120.1
2008 I r155.0 r115.7 74.6 r188.0 r126.5 r121.3
II r155.1 r115.3 r74.4 r189.6 r126.0 r122.2
--------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2006 I 1.0 3.6 2.6 15.5 13.4 14.4
II 1.1 -0.9 -1.9 -3.1 -6.5 -4.1
III 1.5 2.2 0.6 2.6 -1.4 1.1
IV 3.5 -1.1 -4.4 6.1 7.7 2.5
ANNUAL 0.2 0.3 0.1 4.5 1.1 4.3
2007 I 2.5 2.0 -0.5 3.3 -0.3 0.8
II 0.4 1.3 0.9 -1.0 -5.3 -1.4
III 3.5 1.6 -1.9 0.7 -2.0 -2.7
IV 0.6 -1.1 -1.7 7.9 2.8 7.3
ANNUAL 2.1 0.9 -1.2 2.5 -0.3 0.4
2008 I r5.7 r-1.3 -6.7 r6.0 r1.7 r0.3
II r0.2 -1.3 r-1.6 r3.3 r-1.6 r3.1
--------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2006 I 0.2 -0.1 -0.3 6.2 2.4 6.0
II -0.7 -0.6 0.1 3.5 -0.4 4.2
III -0.4 1.0 1.4 3.1 -0.2 3.6
IV 1.8 0.9 -0.8 5.1 3.0 3.2
ANNUAL 0.2 0.3 0.1 4.5 1.1 4.3
2007 I 2.1 0.5 -1.6 2.2 -0.2 0.0
II 2.0 1.1 -0.9 2.7 0.1 0.7
III 2.5 0.9 -1.5 2.3 -0.1 -0.2
IV 1.7 0.9 -0.8 2.7 -1.2 1.0
ANNUAL 2.1 0.9 -1.2 2.5 -0.3 0.4
2008 I r2.5 0.1 -2.4 r3.4 r-0.8 r0.8
II r2.5 r-0.6 r-3.0 r4.5 r0.2 r1.9
--------------------------------------------------------------------------------------------------
See footnotes following Table 6. September 4, 2008
r=revised Source: Bureau of Labor Statistics
Table 6. Nonfinancial corporate sector: Productivity, hourly compensation, unit labor costs, unit profits,
and prices, seasonally adjusted
Output Hourly Real Unit Total Unit Implicit
Year per all- compen- hourly Unit non- unit pro- price
and employee Employee sation compen- labor labor costs fits deflator
quarter hour Output hours (1) sation(2) costs costs(6) (7) (8) (4)
----------------------------------------------------------------------------------------------------------
Indexes 1992=100
2006 I 146.3 176.2 120.4 164.5 118.1 112.4 112.9 112.5 182.5 118.8
II 146.0 176.5 120.9 164.5 117.0 112.6 114.4 113.1 183.1 119.4
III 147.0 178.5 121.5 165.1 116.3 112.3 114.2 112.8 193.0 120.0
IV 146.0 177.8 121.8 167.8 118.7 114.9 116.2 115.3 173.9 120.5
ANNUAL 146.3 177.3 121.1 165.5 117.5 113.1 114.4 113.4 183.1 119.7
2007 I 146.2 177.8 121.7 170.3 119.4 116.5 117.2 116.7 171.8 121.6
II 147.4 179.7 121.9 171.3 118.7 116.2 117.4 116.5 172.5 121.5
III 148.1 180.9 122.1 172.5 118.7 116.5 117.8 116.8 166.8 121.3
IV 148.8 181.7 122.1 175.0 119.0 117.6 118.9 117.9 155.9 121.3
ANNUAL 147.6 180.0 122.0 172.3 119.0 116.7 117.9 117.0 166.7 121.4
2008 I r148.7 r181.1 121.8 r176.2 r118.6 r118.5 r119.0 r118.6 r150.3 121.5
II 150.8 182.8 121.3 177.9 118.2 118.0 119.7 118.4 140.0 120.4
----------------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2006 I 4.4 7.0 2.4 8.3 6.3 3.7 -0.6 2.5 12.1 3.7
II -0.9 0.8 1.7 0.0 -3.5 0.9 5.3 2.1 1.4 2.0
III 2.7 4.7 1.9 1.5 -2.5 -1.2 -0.5 -1.0 23.3 2.1
IV -2.6 -1.6 1.0 6.9 8.5 9.7 6.9 9.0 -34.1 1.7
ANNUAL 2.1 4.4 2.2 3.6 0.3 1.5 1.4 1.4 12.2 2.8
2007 I 0.4 0.0 -0.3 6.1 2.4 5.7 3.6 5.1 -4.7 3.8
II 3.4 4.3 0.8 2.2 -2.3 -1.2 0.8 -0.7 1.7 -0.4
III 1.8 2.6 0.7 2.8 0.1 1.0 1.3 1.0 -12.5 -0.8
IV 1.9 1.9 0.0 5.9 0.9 3.9 3.9 3.9 -23.7 0.2
ANNUAL 0.9 1.6 0.7 4.1 1.3 3.2 3.0 3.2 -9.0 1.5
2008 I r-0.2 r-1.4 -1.1 r2.9 r-1.3 r3.2 r0.3 r2.4 r-13.6 0.5
II 5.6 3.8 -1.7 3.7 -1.2 -1.8 2.4 -0.7 -24.7 -3.6
----------------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2006 I 3.2 5.9 2.6 4.1 0.4 0.9 1.4 1.0 17.1 3.0
II 1.6 3.9 2.3 3.7 -0.2 2.0 2.7 2.2 9.8 3.2
III 2.9 5.2 2.2 2.6 -0.7 -0.3 -1.3 -0.6 26.8 2.6
IV 0.9 2.7 1.8 4.1 2.1 3.2 2.7 3.1 -2.0 2.4
ANNUAL 2.1 4.4 2.2 3.6 0.3 1.5 1.4 1.4 12.2 2.8
2007 I -0.1 1.0 1.1 3.6 1.1 3.7 3.8 3.7 -5.9 2.4
II 1.0 1.8 0.8 4.1 1.4 3.1 2.7 3.0 -5.8 1.8
III 0.7 1.3 0.6 4.5 2.1 3.7 3.1 3.6 -13.6 1.1
IV 1.9 2.2 0.3 4.3 0.3 2.3 2.4 2.3 -10.3 0.7
ANNUAL 0.9 1.6 0.7 4.1 1.3 3.2 3.0 3.2 -9.0 1.5
2008 I r1.7 r1.8 0.1 r3.5 r-0.7 r1.7 r1.6 1.7 r-12.5 -0.1
II 2.3 1.7 -0.5 3.8 -0.4 1.5 2.0 1.7 -18.8 -0.9
----------------------------------------------------------------------------------------------------------
See footnotes following Table 6. September 4, 2008
r=revised Source: Bureau of Labor Statistics
SOURCES: Output data are from the Bureau of Economic Analysis and the Census
Bureau of the U.S. Department of Commerce; the Bureau of Labor Statistics,
U.S. Department of Labor; and the Federal Reserve Board. Compensation and
hours data are from the Bureau of Labor Statistics and the Bureau of Economic
Analysis.
RELIABILITY: Productivity and cost measures are regularly revised as more
complete information becomes available. The measures are first published
within 40 days of the close of the reference period; revisions appear 30 days
later, and second revisions after an additional 60 days. In the business
sector, the third publication (second revision) of a quarterly index of
output per hour of all persons has differed from the initial value by between
-1.5 and +1.3 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 2008.
Footnotes, Tables 1-6
(1) Wages and salaries of employees plus employers' contributions for social
insurance and private benefit plans. Except for nonfinancial
corporations, where there are no self-employed, data also include an
estimate of wages, salaries, and supplemental payments for the self-
employed.
(2) The change for recent quarters is based on the Consumer Price Index for
all urban consumers (CPI-U). The trend from 1978-2007 is based on the
Consumer Price Index research series (CPI-U-RS).
(3) Unit nonlabor payments include profits, consumption of fixed capital,
taxes on production and imports less subsidies, net interest and
miscellaneous payments, business current transfer payments, rental
income of persons, and the current surplus of government enterprises.
(4) Current dollar output divided by the output index.
(5) Quarterly changes: Percent change compounded at annual rate is
calculated using index numbers to three decimal places. Indexes
published in the news release are rounded to one decimal place for
convenience. Annual changes: Percent change is calculated using annual
average indexes to three decimal places.
(6) Unit nonlabor costs include consumption of fixed capital, taxes on
production and imports less subsidies, net interest and miscellaneous
payments, and business current transfer payments.
(7) Total unit costs are the sum of unit labor and nonlabor costs.
(8) Unit profits include corporate profits before tax with inventory
valuation and capital consumption adjustments.
United States Department of Labor
