Transmission of material in this release is embargoed until USDL 14-1641
8:30 a.m. (EDT) Thursday, September 4, 2014
Technical information: (202) 691-5606 dprweb@bls.gov www.bls.gov/lpc
Media contact (202) 691-5902 PressOffice@bls.gov
PRODUCTIVITY AND COSTS
Second Quarter 2014, Revised
Nonfarm business sector labor productivity increased at a 2.3 percent annual
rate during the second quarter of 2014, the U.S. Bureau of Labor Statistics
reported today, as hours increased 2.6 percent and output increased 5.0
percent. (All quarterly percent changes in this release are seasonally
adjusted annual rates.) From the second quarter of 2013 to the second quarter
of 2014, productivity increased 1.1 percent as output and hours worked rose
3.2 percent and 2.0 percent, respectively. (See table A.)
Labor productivity, or output per hour, is calculated by dividing an index of
real output by an index of hours worked of all persons, including employees,
proprietors, and unpaid family workers. The measures released today were
based on more recent source data than were available for the preliminary
report.
Unit labor costs in nonfarm businesses edged down 0.1 percent in the second
quarter of 2014, and increased 1.7 percent over the last four quarters. (See
tables A and 2.)
BLS defines unit labor costs as the ratio of hourly compensation to labor
productivity; increases in hourly compensation tend to increase unit labor
costs and increases in output per hour tend to reduce them.
Manufacturing sector productivity increased 3.3 percent in the second quarter
of 2014, as output increased 6.9 percent and hours worked increased 3.5
percent. The increase in output was the largest since the second quarter of
2010 (11.6 percent). Productivity increased 3.4 percent in the durable goods
sector and increased 4.7 percent in the nondurable goods sector. Over the
last 4 quarters, manufacturing productivity increased 2.1 percent, as output
increased 3.7 percent and hours increased 1.6 percent. Unit labor costs in
manufacturing decreased 1.6 percent in the second quarter of 2014 and
increased 0.8 percent from the same quarter a year ago. (See tables A and 3.)
The concepts, sources, and methods used for the manufacturing output series
differ from those used in the business and nonfarm business output series;
these output measures are not directly comparable. See Technical Notes for a
more detailed explanation.
Preliminary second-quarter 2014 measures of productivity and costs were
announced for the nonfinancial corporate sector. Productivity increased 3.1
percent in the second quarter of 2014 as output and hours rose 7.8 percent
and 4.5 percent, respectively. Unit labor costs fell 1.2 percent, as the
1.8 percent gain in hourly compensation was less than the 3.1 percent gain
in productivity. (See tables C and 6.)
Revised measures
The measures released today are based on more recent source data than were
available for the preliminary report. Table B presents previous and revised
productivity and related measures for the major sectors: nonfarm business,
business, and manufacturing. Output data for manufacturing incorporates
revised annual output indexes constructed by BLS using data from the U.S.
Bureau of the Census. Manufacturing measures based on output--including
productivity and unit labor costs--were subject to revision back to the
beginning of the series in 1987. Revised quarterly and annual series for
recent years for all sectors appear in tables 1-6. Revised annual indexes for
the manufacturing sectors for all years appear in appendix tables 1-3. Full
historical annual and quarterly measures can be found on the productivity and
costs home page: www.bls.gov/lpc/#data.
In the second quarter of 2014, nonfarm business productivity growth was
revised down to 2.3 percent from 2.5 percent, due to a downward revision to
output. Unit labor costs declined 0.1 percent rather than increasing 0.6
percent as reported August 8, due primarily to a downward revision to
hourly compensation. In the manufacturing sector, productivity growth was
revised down, reflecting both an upward revision to hours worked and a small
downward revision to output. Unit labor costs decreased more than previously
reported, as hourly compensation was revised down by more than productivity.
In the first quarter of 2014, nonfarm business productivity was unrevised
and fell 4.5 percent. Hourly compensation, and therefore unit labor costs,
increased slightly less than previously reported. In the manufacturing
sector, productivity increased at the same 3.2 percent rate as the
preliminary estimate. Hourly compensation and unit labor costs were revised
upwards.
Annual average productivity growth for 2013 in the total manufacturing sector
was revised to 2.0 percent from 2.3 percent due to a downward revision to
output. For the full series from 1987 to 2013, the average annual rate of
manufacturing productivity growth was 3.2 percent, unchanged from data
published August 8.
Table C presents previous and revised productivity and related measures for
the nonfinancial corporate sector. In the first quarter of 2014, nonfinancial
corporate sector productivity declined 1.1 percent, rather than 0.9 percent
as reported August 8. Unit labor costs increased less in the first quarter
than previously reported, as hourly compensation was revised down by more
than productivity.
______________
The preliminary Productivity and Costs news release for third-quarter 2014 is
scheduled to be released on Thursday, November 6, 2014 at 8:30 a.m. (EST).
======================================================================================================
Table A. Revised second-quarter 2014 measures: percent change from previous quarter, at annual rate
(Q to Q) and from same quarter a year ago (Y to Y)
Sector Nonfarm Durable Nondurable
Business Business Manufacturing Manufacturing Manufacturing
Q to Q Y to Y Q to Q Y to Y Q to Q Y to Y Q to Q Y to Y Q to Q Y to Y
------------------------------------------------------------------------------------------------------
Productivity 2.3 1.1 2.3 0.9 3.3 2.1 3.4 2.9 4.7 1.7
Output 5.0 3.2 5.1 3.0 6.9 3.7 9.6 5.4 4.0 1.8
Hours 2.6 2.0 2.8 2.1 3.5 1.6 6.0 2.5 -0.7 0.1
Hourly
compensation 2.3 2.8 2.1 2.7 1.6 2.9 0.9 2.5 2.5 3.6
Real hourly
compensation -0.7 0.8 -0.9 0.7 -1.4 0.9 -2.0 0.4 -0.5 1.5
Unit labor
costs -0.1 1.7 -0.2 1.8 -1.6 0.8 -2.3 -0.4 -2.2 1.8
======================================================================================================
Table B. Revised and previous measures: second quarter and first quarter 2014
Sector Nonfarm Durable Nondurable
Business Business Manufacturing Manufacturing Manufacturing
Revised Previous Revised Previous Revised Previous Revised Previous Revised Previous
------------------------------------------------------------------------------------------------------
Percent change, annual rate, second quarter 2014
Productivity 2.3 2.5 2.3 2.0 3.3 3.6 3.4 2.9 4.7 5.9
Output 5.0 5.2 5.1 4.9 6.9 7.0 9.6 8.8 4.0 5.0
Hours 2.6 2.7 2.8 2.8 3.5 3.2 6.0 5.7 -0.7 -0.9
Hourly
compensation 2.3 3.1 2.1 3.0 1.6 2.2 0.9 1.5 2.5 3.1
Real hourly
compensation -0.7 0.1 -0.9 0.0 -1.4 -0.8 -2.0 -1.4 -0.5 0.1
Unit labor
costs -0.1 0.6 -0.2 1.0 -1.6 -1.3 -2.3 -1.3 -2.2 -2.7
------------------------------------------------------------------------------------------------------
Percent change, annual rate, first quarter 2014
Productivity -4.5 -4.5 -5.0 -5.0 3.2 3.2 3.5 3.4 2.8 2.8
Output -2.4 -2.4 -3.3 -3.3 1.6 1.5 1.8 1.7 1.4 1.4
Hours 2.1 2.1 1.8 1.8 -1.6 -1.6 -1.6 -1.6 -1.4 -1.4
Hourly
compensation 6.6 6.8 6.9 7.1 8.9 8.3 10.0 8.9 6.8 7.0
Real hourly
compensation 4.6 4.8 4.9 5.1 6.9 6.2 7.9 6.9 4.8 5.0
Unit labor
costs 11.6 11.8 12.5 12.7 5.5 5.0 6.3 5.4 3.9 4.1
======================================================================================================
Table C. Nonfinancial corporations: preliminary second quarter and revised first quarter 2014
Real
Hourly hourly Unit Implicit
Produc- compen- compen- labor Unit price
tivity Output Hours sation sation costs profits deflator
------------------------------------------------------------------------------------------------------
Percent change, annual rate, second quarter 2014
Q to Q 3.1 7.8 4.5 1.8 -1.2 -1.2 38.8 1.7
Y to Y 0.0 2.7 2.7 2.1 0.1 2.1 -1.3 0.9
Percent change, annual rate, first quarter 2014
Revised -1.1 0.7 1.8 6.5 4.5 7.6 -26.9 0.5
Previous -0.9 0.9 1.8 6.8 4.8 7.8 -27.0 0.5
======================================================================================================
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 76 percent of the value of GDP in 2013.
Nonfarm business, which excludes farming, accounted for about 74
percent of GDP in 2013.
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 49 percent of the value
of GDP in 2013.
Productivity: These productivity measures describe the relationship
between real output and the labor time involved in its production.
They show the changes from period to period in the amount of goods
and services produced per hour. Although these measures relate output
to hours at work of all persons engaged in a sector, they do not
measure the specific contribution of labor, capital, or any other
factor of production. Rather, they reflect the joint effects of many
influences, including changes in technology; capital investment;
level of output; utilization of capacity, energy, and materials; the
organization of production; managerial skill; and the characteristics
and effort of the work force.
Labor Compensation: The measure includes accrued wages and salaries,
supplements, employer contributions to employee benefit plans, and
taxes. Estimates of labor compensation by major sector, required for
measures of hourly compensation and unit labor costs, are based
primarily on employee compensation data from the NIPA, prepared by
the BEA. The compensation of employees in general government,
nonprofit institutions and private households are subtracted from
compensation of domestic employees to derive employee compensation
for the business sector. The labor compensation of proprietors cannot
be explicitly identified and must be estimated. This is done by
assuming that proprietors have the same hourly compensation as
employees in the same sector. The quarterly labor productivity and
cost measures do not contain estimates of compensation for unpaid
family workers.
Unit Labor Costs: The measures of unit labor costs in this release
describe the relationship between compensation per hour and
productivity, or real output per hour, and can be used as an
indicator of inflationary pressure on producers. Increases in hourly
compensation increase unit labor costs; labor productivity increases
offset compensation increases and lower unit labor costs.
Presentation of the data: The quarterly data in this release are
presented in three ways: as 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 2009=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. 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 DPRWEB@BLS.GOV)
Information in this release will be made available to sensory-impaired
individuals upon request. Voice phone: 202-691-5606; Federal Relay Service
number: 1-800-877-8339.
Table 1. Business sector: Productivity, hourly compensation, unit labor costs, and prices,
seasonally adjusted
Real
Output Compen- compen- Unit Implicit
Year per hour Hours sation sation Unit nonlabor price
and of all of all per hour per hour labor payments deflator
quarter persons Output persons (1) (2) costs (3) (4)
---------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2014 II 2.3 r 5.1 r 2.8 2.1 r -0.9 r -0.2 r 5.8 r 2.4 r
I -5.0 -3.3 1.8 6.9 r 4.9 r 12.5 r -11.5 r 1.3
2013 ANNUAL 1.2 2.7 1.5 1.4 -0.1 0.2 3.1 1.4
2013 IV 3.1 4.6 1.5 1.7 0.5 -1.4 4.0 1.0
III 3.5 5.9 2.4 0.3 -1.7 -3.1 7.9 1.6
II 0.7 2.1 1.4 3.8 3.4 3.1 -1.7 1.0
I 2.1 3.2 1.1 -5.6 -6.7 -7.6 14.6 1.4
2012 ANNUAL 0.9 3.1 2.2 2.8 0.7 1.9 1.7 1.8
2012 IV -2.0 -0.1 1.9 10.8 8.1 13.0 -12.3 1.3
III 1.3 3.1 1.8 0.0 -1.6 -1.3 6.5 2.0
II 1.8 2.3 0.4 0.8 -0.5 -1.0 6.5 2.2
I -0.1 3.1 3.3 11.6 9.2 11.7 -10.0 1.7
---------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2014 II 0.9 r 3.0 2.1 2.7 r 0.7 r 1.8 r 1.3 r 1.6 r
I 0.5 2.3 1.7 3.1 r 1.7 r 2.6 r -0.6 r 1.2
2013 ANNUAL 1.2 2.7 1.5 1.4 -0.1 0.2 3.1 1.4
2013 IV 2.4 4.0 1.6 0.0 -1.2 -2.3 6.0 1.2
III 1.1 2.8 1.7 2.1 0.6 1.1 1.6 1.3
II 0.5 2.1 1.5 2.1 0.6 1.5 1.3 1.4
I 0.8 2.1 1.3 1.3 -0.3 0.5 3.3 1.7
2012 ANNUAL 0.9 3.1 2.2 2.8 0.7 1.9 1.7 1.8
2012 IV 0.3 2.1 1.8 5.7 3.7 5.4 -2.7 1.8
III 1.6 3.6 2.0 1.8 0.1 0.2 3.6 1.7
II 1.0 3.1 2.1 2.3 0.4 1.3 2.6 1.8
I 0.8 3.5 2.7 1.6 -1.2 0.8 3.8 2.1
---------------------------------------------------------------------------------------------------
Indexes 2009=100
2014 II 105.9 r 113.9 r 107.6 r 111.5 r 100.9 r 105.3 r 112.1 r 108.2 r
I 105.3 112.5 106.9 110.9 r 101.1 r 105.4 r 110.6 r 107.5
2013 ANNUAL 105.5 111.6 105.7 108.5 99.9 102.8 112.2 106.7
2013 IV 106.6 113.5 106.4 109.1 99.9 102.3 114.0 107.2
III 105.8 112.2 106.0 108.6 99.8 102.7 112.9 106.9
II 104.9 110.6 105.4 108.6 100.3 103.5 110.7 106.5
I 104.7 110.0 105.1 107.5 99.4 102.7 111.2 106.3
2012 ANNUAL 104.3 108.6 104.2 107.0 99.9 102.6 108.9 105.2
2012 IV 104.2 109.1 104.8 109.1 101.2 104.7 107.5 105.9
III 104.7 109.2 104.3 106.4 99.2 101.6 111.1 105.6
II 104.3 108.3 103.8 106.3 99.6 101.9 109.3 105.0
I 103.9 107.7 103.7 106.1 99.8 102.2 107.6 104.5
---------------------------------------------------------------------------------------------------
See footnotes following Table 6. September 4, 2014
r=revised Source: Bureau of Labor Statistics
Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs, and prices,
seasonally adjusted
Real
Output Compen- compen- Unit Implicit
Year per hour Hours sation sation Unit nonlabor price
and of all of all per hour per hour labor payments deflator
quarter persons Output persons (1) (2) costs (3) (4)
---------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2014 II 2.3 r 5.0 r 2.6 r 2.3 r -0.7 r -0.1 r 4.8 r 2.0 r
I -4.5 -2.4 2.1 6.6 r 4.6 r 11.6 r -11.7 r 0.8
2013 ANNUAL 0.9 2.6 1.7 1.1 -0.3 0.2 2.9 1.4
2013 IV 3.3 4.7 1.4 1.9 0.7 -1.3 5.0 1.4
III 3.6 5.6 1.9 0.7 -1.4 -2.9 8.5 1.9
II 0.5 2.0 1.5 3.7 3.2 3.2 -0.7 1.5
I 0.8 2.4 1.6 -6.3 -7.4 -7.0 12.7 0.9
2012 ANNUAL 1.0 3.2 2.2 2.7 0.6 1.7 2.0 1.8
2012 IV -2.0 0.1 2.2 10.4 7.8 12.7 -12.8 1.0
III 1.7 3.7 2.0 -0.2 -1.8 -1.8 6.7 1.8
II 1.8 2.3 0.5 0.7 -0.7 -1.2 7.0 2.3
I 0.2 3.3 3.2 11.6 9.3 11.4 -9.9 1.6
---------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2014 II 1.1 r 3.2 2.0 2.8 r 0.8 r 1.7 r 1.3 r 1.5
I 0.7 2.4 1.7 3.2 r 1.8 2.5 r 0.0 r 1.4
2013 ANNUAL 0.9 2.6 1.7 1.1 -0.3 0.2 2.9 1.4
2013 IV 2.0 3.7 1.6 -0.1 -1.3 -2.1 6.2 1.4
III 0.7 2.5 1.8 1.9 0.4 1.2 1.4 1.3
II 0.2 2.0 1.8 1.7 0.3 1.5 1.0 1.3
I 0.6 2.1 1.5 1.0 -0.7 0.4 2.9 1.5
2012 ANNUAL 1.0 3.2 2.2 2.7 0.6 1.7 2.0 1.8
2012 IV 0.4 2.3 1.9 5.5 3.5 5.1 -2.7 1.6
III 1.7 3.8 2.0 1.6 0.0 -0.1 4.1 1.7
II 1.1 3.1 2.0 2.3 0.4 1.2 2.8 1.9
I 0.9 3.7 2.7 1.5 -1.2 0.6 4.0 2.0
---------------------------------------------------------------------------------------------------
Indexes 2009=100
2014 II 106.0 r 114.2 r 107.8 r 111.4 r 100.8 r 105.1 r 110.8 r 107.5 r
I 105.4 112.9 107.1 110.7 r 101.0 r 105.1 r 109.5 r 106.9
2013 ANNUAL 105.4 111.7 105.9 108.3 99.7 102.7 110.9 106.1
2013 IV 106.6 113.5 106.5 109.0 99.9 102.3 113.0 106.7
III 105.7 112.2 106.2 108.5 99.7 102.6 111.6 106.4
II 104.8 110.7 105.7 108.3 100.0 103.4 109.4 105.9
I 104.7 110.2 105.3 107.3 99.2 102.5 109.6 105.5
2012 ANNUAL 104.5 108.9 104.2 107.1 100.0 102.4 107.8 104.7
2012 IV 104.4 109.5 104.9 109.1 101.1 104.4 106.3 105.2
III 105.0 109.5 104.3 106.4 99.3 101.4 110.0 105.0
II 104.5 108.5 103.8 106.5 99.7 101.8 108.3 104.5
I 104.1 107.9 103.7 106.3 99.9 102.1 106.5 103.9
---------------------------------------------------------------------------------------------------
See footnotes following Table 6. September 4, 2014
r=revised Source: Bureau of Labor Statistics
Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
Real
Output Compen- compen-
Year per hour Hours sation sation Unit
and of all of all per hour per hour labor
quarter persons Output persons (1) (2) costs
---------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2014 II 3.3 r 6.9 r 3.5 r 1.6 r -1.4 r -1.6 r
I 3.2 1.6 r -1.6 8.9 r 6.9 r 5.5 r
2013 ANNUAL 2.0 r 2.7 r 0.7 0.6 -0.8 -1.4 r
2013 IV 1.3 4.7 3.4 0.8 -0.4 -0.5
III 0.5 1.7 1.1 0.6 -1.4 0.0
II 3.7 1.5 -2.2 2.9 2.4 -0.9
I 3.1 4.8 1.7 -2.3 -3.4 -5.2
2012 ANNUAL 1.0 r 3.3 r 2.3 1.7 -0.3 0.8 r
2012 IV 1.9 r 2.4 r 0.4 4.3 1.8 2.4 r
III 0.1 r 1.2 r 1.1 -2.1 -3.7 -2.1 r
II 1.0 r 2.4 r 1.3 0.4 -1.0 -0.7 r
I 2.8 r 6.1 r 3.1 10.7 8.4 7.6 r
---------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2014 II 2.1 3.7 1.6 r 2.9 0.9 0.8
I 2.2 2.4 0.2 3.2 r 1.8 r 1.0 r
2013 ANNUAL 2.0 r 2.7 r 0.7 0.6 -0.8 -1.4 r
2013 IV 2.2 r 3.2 1.0 0.5 -0.7 -1.7
III 2.3 r 2.6 r 0.3 1.3 -0.2 -1.0
II 2.2 r 2.4 r 0.3 0.7 -0.8 -1.5 r
I 1.5 r 2.7 r 1.1 0.0 -1.6 -1.4 r
2012 ANNUAL 1.0 r 3.3 r 2.3 1.7 -0.3 0.8 r
2012 IV 1.5 r 3.0 r 1.5 3.2 1.3 1.7 r
III 0.6 r 3.2 r 2.6 0.9 -0.7 0.4 r
II 1.5 r 4.0 r 2.4 1.8 -0.1 0.3 r
I 0.4 r 3.2 r 2.8 1.0 -1.7 0.7 r
---------------------------------------------------------------------------------------------------
Indexes 2009=100
2014 II 112.7 r 119.7 r 106.3 r 108.6 r 98.3 r 96.4 r
I 111.7 r 117.7 r 105.3 108.2 r 98.6 r 96.8 r
2013 ANNUAL 110.3 r 115.9 r 105.1 105.5 97.1 95.6 r
2013 IV 110.9 r 117.2 r 105.8 105.9 97.0 95.5 r
III 110.5 r 115.9 r 104.9 105.7 97.1 95.6 r
II 110.4 r 115.4 r 104.6 105.5 97.5 95.6 r
I 109.4 r 115.0 r 105.2 104.8 96.9 95.8 r
2012 ANNUAL 108.1 r 112.8 r 104.4 104.8 97.9 97.0 r
2012 IV 108.5 r 113.6 r 104.7 105.4 97.7 97.1 r
III 108.0 r 113.0 r 104.6 104.3 97.3 96.6 r
II 108.0 r 112.7 r 104.3 104.8 98.2 97.1 r
I 107.7 r 112.0 r 104.0 104.7 98.5 97.2 r
---------------------------------------------------------------------------------------------------
See footnotes following Table 6. September 4, 2014
r=revised Source: Bureau of Labor Statistics
Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
Real
Output Compen- compen-
Year per hour Hours sation sation Unit
and of all of all per hour per hour labor
quarter persons Output persons (1) (2) costs
---------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2014 II 3.4 r 9.6 r 6.0 r 0.9 r -2.0 r -2.3 r
I 3.5 r 1.8 r -1.6 10.0 r 7.9 r 6.3 r
2013 ANNUAL 3.1 r 4.2 r 1.0 0.1 -1.4 -3.0 r
2013 IV 2.6 6.9 4.2 -1.7 -2.9 -4.2
III 2.0 3.6 1.6 1.0 -1.0 -0.9
II 5.2 2.9 -2.1 2.6 2.1 -2.5
I 3.4 6.4 2.9 -3.4 -4.5 -6.5
2012 ANNUAL 3.0 r 6.0 r 2.9 1.3 -0.7 -1.6 r
2012 IV 3.3 r 3.6 r 0.3 5.1 2.6 1.7 r
III 0.5 r 1.1 r 0.6 -3.4 -5.0 -4.0 r
II 3.4 r 5.3 r 1.9 -1.0 -2.4 -4.3 r
I 7.0 r 10.3 r 3.1 11.9 9.6 4.6 r
---------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2014 II 2.9 r 5.4 r 2.5 r 2.5 r 0.4 r -0.4 r
I 3.3 3.8 0.5 2.9 r 1.5 r -0.4 r
2013 ANNUAL 3.1 r 4.2 r 1.0 0.1 -1.4 -3.0 r
2013 IV 3.3 4.9 1.6 -0.4 -1.6 -3.5
III 3.5 r 4.1 r 0.6 1.3 -0.2 -2.1 r
II 3.1 r 3.5 r 0.4 0.1 -1.3 -2.9 r
I 2.6 r 4.1 r 1.4 -0.7 -2.4 -3.3 r
2012 ANNUAL 3.0 r 6.0 r 2.9 1.3 -0.7 -1.6 r
2012 IV 3.5 r 5.1 r 1.5 3.0 1.0 -0.5 r
III 2.5 r 5.8 r 3.2 0.2 -1.5 -2.3 r
II 4.1 r 7.3 r 3.2 1.6 -0.3 -2.4 r
I 1.8 r 5.9 r 4.0 0.7 -2.1 -1.1 r
---------------------------------------------------------------------------------------------------
Indexes 2009=100
2014 II 122.9 r 134.9 r 109.8 r 107.4 r 97.2 r 87.4 r
I 121.9 r 131.8 r 108.2 107.1 r 97.7 r 87.9 r
2013 ANNUAL 119.6 r 128.8 r 107.7 104.7 96.4 87.5 r
2013 IV 120.8 r 131.2 r 108.6 104.6 95.8 86.6 r
III 120.1 r 129.1 r 107.5 105.1 96.5 87.5 r
II 119.5 r 127.9 r 107.1 104.8 96.8 87.7 r
I 118.0 r 127.0 r 107.7 104.1 96.3 88.3 r
2012 ANNUAL 116.0 r 123.7 r 106.6 104.6 97.7 90.2 r
2012 IV 117.0 r 125.1 r 106.9 105.0 97.4 89.8 r
III 116.1 r 124.0 r 106.8 103.7 96.8 89.4 r
II 115.9 r 123.6 r 106.6 104.6 98.0 90.3 r
I 114.9 r 122.0 r 106.2 104.9 98.6 91.3 r
---------------------------------------------------------------------------------------------------
See footnotes following Table 6. September 4, 2014
r=revised Source: Bureau of Labor Statistics
Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
Real
Output Compen- compen-
Year per hour Hours sation sation Unit
and of all of all per hour per hour labor
quarter persons Output persons (1) (2) costs
---------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2014 II 4.7 r 4.0 r -0.7 r 2.5 r -0.5 r -2.2 r
I 2.8 1.4 -1.4 6.8 r 4.8 r 3.9 r
2013 ANNUAL 1.2 1.3 0.1 1.6 0.2 0.4
2013 IV 0.3 2.3 2.0 5.7 4.4 5.3
III -0.8 -0.4 0.4 -0.4 -2.4 0.4
II 2.2 -0.1 -2.3 3.4 2.9 1.2
I 3.4 3.1 -0.3 -0.5 -1.6 -3.8
2012 ANNUAL 0.0 1.3 r 1.3 2.4 0.3 2.4
2012 IV 0.6 1.2 0.7 2.9 0.4 2.3
III -0.2 1.7 1.9 0.8 -0.9 1.0
II -0.5 r -0.1 r 0.4 3.0 1.6 3.5 r
I -0.5 r 2.6 3.2 8.3 6.1 8.9 r
---------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2014 II 1.7 r 1.8 r 0.1 r 3.6 r 1.5 r 1.8 r
I 1.1 0.8 -0.3 3.8 r 2.4 2.7
2013 ANNUAL 1.2 1.3 0.1 1.6 0.2 0.4
2013 IV 1.3 1.2 -0.1 2.0 0.8 0.7
III 1.3 0.9 -0.4 1.3 -0.2 0.0
II 1.5 1.5 0.0 1.6 0.2 0.1 r
I 0.8 1.5 r 0.7 1.5 -0.1 0.7
2012 ANNUAL 0.0 1.3 r 1.3 2.4 0.3 2.4
2012 IV -0.2 1.4 r 1.5 3.7 1.8 3.9
III -0.4 1.2 r 1.5 2.2 0.5 2.6
II 0.2 1.3 1.1 2.0 0.1 1.9
I 0.4 r 1.2 r 0.8 1.5 -1.3 1.1 r
---------------------------------------------------------------------------------------------------
Indexes 2009=100
2014 II 107.4 r 108.0 r 100.6 r 110.2 r 99.7 r 102.6 r
I 106.1 r 107.0 r 100.8 109.5 r 99.9 r 103.2 r
2013 ANNUAL 105.3 r 106.2 r 100.9 106.5 98.0 101.1 r
2013 IV 105.4 r 106.6 r 101.2 107.7 98.7 102.2 r
III 105.3 r 106.0 r 100.7 106.3 97.7 100.9 r
II 105.5 r 106.1 r 100.6 106.4 98.3 100.8 r
I 105.0 r 106.2 r 101.1 105.5 97.5 100.5 r
2012 ANNUAL 104.0 r 104.9 r 100.8 104.8 97.9 100.7 r
2012 IV 104.1 r 105.4 r 101.2 105.6 98.0 101.5 r
III 103.9 r 105.0 r 101.1 104.9 97.9 100.9 r
II 104.0 r 104.6 r 100.6 104.7 98.1 100.7 r
I 104.1 r 104.6 r 100.5 103.9 97.7 99.8 r
---------------------------------------------------------------------------------------------------
See footnotes following Table 6. September 4, 2014
r=revised Source: Bureau of Labor Statistics
Table 6. Nonfinancial corporate sector: Productivity, hourly compensation, unit labor costs, unit profits,
and prices, seasonally adjusted
Real Unit
Output Hourly hourly non- Total Unit Implicit
Year per all- compen- compen- Unit labor unit pro- price
and employee Employee sation sation labor costs cost fits deflator
quarter hour Output hours (1) (2) costs (6) (7) (8) (4)
---------------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2014 II 3.1 7.8 4.5 1.8 -1.2 -1.2 -7.4 -3.3 38.8 1.7
I -1.1 r 0.7 r 1.8 6.5 r 4.5 r 7.6 r 2.3 r 5.9 -26.9 r 0.5
2013 ANNUAL 0.3 2.3 2.0 1.4 -0.1 1.1 0.1 0.8 1.4 0.9
2013 IV 0.1 2.2 2.1 0.8 -0.4 0.8 0.7 0.7 -3.9 0.0
III -2.0 0.4 2.4 -0.5 -2.5 1.6 2.3 1.8 -2.7 1.1
II 2.9 4.5 1.6 2.2 1.7 -0.6 -2.6 -1.3 8.5 0.1
I -1.4 1.6 3.1 -1.8 -2.9 -0.4 2.7 0.6 -1.9 0.2
2012 ANNUAL 1.9 4.3 2.3 2.9 0.8 0.9 -0.7 0.4 7.9 1.4
2012 IV 4.0 5.6 1.5 7.9 5.3 3.7 -3.3 1.4 4.5 1.8
III -3.6 -2.2 1.5 -0.2 -1.9 3.6 2.3 3.1 -5.7 1.8
II 1.6 2.4 0.8 0.3 -1.1 -1.3 -0.2 -0.9 15.5 1.3
I 6.1 9.6 3.3 13.5 11.1 6.9 -2.6 3.6 -1.4 2.9
---------------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2014 II 0.0 2.7 2.7 2.1 0.1 2.1 -0.6 1.2 -1.3 0.9
I -0.1 r 1.9 r 2.0 2.2 r 0.8 r 2.3 0.7 r 1.7 r -7.2 0.4
2013 ANNUAL 0.3 2.3 2.0 1.4 -0.1 1.1 0.1 0.8 1.4 0.9
2013 IV -0.1 2.2 2.3 0.2 -1.0 0.3 0.7 0.5 -0.1 0.4
III 0.8 3.0 2.1 1.9 0.4 1.0 -0.3 0.6 2.0 0.8
II 0.4 2.3 1.9 2.0 0.5 1.5 -0.3 0.9 1.2 1.0
I 0.1 1.8 1.7 1.5 -0.2 1.4 0.4 1.0 2.8 1.3
2012 ANNUAL 1.9 4.3 2.3 2.9 0.8 0.9 -0.7 0.4 7.9 1.4
2012 IV 2.0 3.8 1.8 5.2 3.2 3.2 -1.0 1.8 2.9 2.0
III 1.8 3.8 2.0 2.1 0.5 0.3 -0.7 0.0 4.1 0.5
II 2.0 4.4 2.4 2.4 0.5 0.4 -0.5 0.1 8.8 1.3
I 2.0 5.3 3.2 1.7 -1.1 -0.4 -0.7 -0.5 17.3 1.7
---------------------------------------------------------------------------------------------------------
Indexes 2009=100
2014 II 107.9 118.7 110.0 110.6 100.1 102.4 96.9 100.6 146.1 105.4
I 107.1 r 116.5 r 108.8 110.1 r 100.4 r 102.8 r 98.8 r 101.4 r 134.6 r 104.9
2013 ANNUAL 107.5 115.5 107.5 108.1 99.5 100.6 98.0 99.7 146.4 104.6
2013 IV 107.4 116.3 108.3 108.3 99.3 100.9 98.2 100.0 145.5 104.8
III 107.4 115.7 107.8 108.1 99.3 100.7 98.1 99.8 147.0 104.8
II 107.9 115.6 107.1 108.2 100.0 100.3 97.5 99.4 148.0 104.5
I 107.2 114.3 106.7 107.7 99.5 100.5 98.2 99.7 145.0 104.4
2012 ANNUAL 107.1 112.9 105.4 106.6 99.6 99.5 97.9 99.0 144.3 103.7
2012 IV 107.5 113.9 105.9 108.2 100.3 100.6 97.5 99.6 145.7 104.4
III 106.5 112.3 105.5 106.1 99.0 99.7 98.3 99.2 144.1 103.9
II 107.5 113.0 105.1 106.2 99.5 98.8 97.8 98.4 146.2 103.4
I 107.1 112.3 104.9 106.1 99.7 99.1 97.8 98.7 141.1 103.1
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6. September 4, 2014
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 -1.7 and 1.5 index points approximately 95 percent of the
time. This interval is based on the performance of this measure between
the fourth quarter of 1995 and the first quarter of 2014.
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 1978-2013 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 adjustments.
Appendix table 1.
Manufacturing sector: Productivity, hourly compensation, and unit labor costs.
Real
Output Compen- compen-
per hour Hours sation sation Unit
of all of all per hour per hour labor
Year persons Output persons (1) (2) costs
----------------------------------------------------------------------------------------------------
Indexes 2009=100
2013 110.3 r 115.9 r 105.1 105.5 97.1 95.6 r
2012 108.1 r 112.8 r 104.4 104.8 97.9 97.0 r
2011 107.0 r 109.2 r 102.0 103.0 98.3 96.3 r
2010 106.2 r 106.2 r 100.0 101.3 99.6 95.3 r
2009 100.0 100.0 100.0 100.0 100.0 100.0
2008 100.3 r 115.2 r 114.9 96.7 96.3 96.4 r
2007 100.3 r 120.0 r 119.6 94.2 97.4 93.9 r
2006 97.0 r 118.1 r 121.7 90.6 96.4 93.3 r
2005 96.6 r 116.7 r 120.8 88.4 97.1 91.5 r
2004 92.7 r 113.3 r 122.2 85.2 96.8 91.9 r
2003 90.5 r 111.2 r 122.8 82.2 95.8 90.8 r
2002 85.7 r 110.7 r 129.2 78.0 93.0 91.0 r
2001 79.6 r 110.6 r 138.9 75.5 91.5 94.9 r
2000 77.7 r 115.5 r 148.7 73.3 91.3 94.4 r
1999 73.7 r 111.0 r 150.6 68.2 87.8 92.5 r
1998 70.1 r 106.2 r 151.6 65.2 85.7 93.0 r
1997 66.1 r 100.5 r 152.0 62.1 82.8 94.0 r
1996 62.5 r 93.4 r 149.4 60.1 81.8 96.0 r
1995 60.3 r 90.3 r 149.6 58.3 81.5 96.6 r
1994 57.6 r 85.6 r 148.7 57.2 81.9 99.4 r
1993 55.7 r 80.8 r 145.2 56.3 82.4 101.2 r
1992 54.4 r 78.0 r 143.3 55.6 83.3 102.2 r
1991 52.6 r 75.8 r 144.1 52.8 81.2 100.5 r
1990 51.2 r 77.0 r 150.4 50.1 79.7 97.8 r
1989 50.0 r 77.1 r 154.2 47.7 79.7 95.4 r
1988 49.3 r 75.6 r 153.3 46.2 80.4 93.6 r
1987 48.2 r 71.7 r 148.8 44.4 80.3 92.1 r
----------------------------------------------------------------------------------------------------
See footnotes following Table 6. September 4, 2014
r=revised Source: Bureau of Labor Statistics
Appendix table 2.
Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs.
Real
Output Compen- compen-
per hour Hours sation sation Unit
of all of all per hour per hour labor
Year persons Output persons (1) (2) costs
----------------------------------------------------------------------------------------------------
Indexes 2009=100
2013 119.6 r 128.8 r 107.7 104.7 96.4 87.5 r
2012 116.0 r 123.7 r 106.6 104.6 97.7 90.2 r
2011 112.6 r 116.7 r 103.6 103.2 98.4 91.6 r
2010 110.1 r 109.9 r 99.8 101.3 99.7 92.1 r
2009 100.0 100.0 100.0 100.0 100.0 100.0
2008 106.4 r 125.7 r 118.2 96.2 95.8 90.4 r
2007 107.3 r 132.4 r 123.4 94.0 97.3 87.6 r
2006 103.9 r 130.8 r 125.9 90.3 96.1 86.9 r
2005 103.4 r 128.7 r 124.5 87.6 96.2 84.7 r
2004 99.9 r 124.7 r 124.8 84.8 96.3 84.9 r
2003 99.2 r 123.1 r 124.1 81.7 95.3 82.4 r
2002 94.5 r 123.8 r 131.0 77.8 92.7 82.3 r
2001 87.7 r 125.2 r 142.7 75.3 91.2 85.8 r
2000 86.3 r 132.7 r 153.8 73.6 91.7 85.4 r
1999 80.9 r 125.2 r 154.7 68.3 88.0 84.4 r
1998 75.2 r 116.8 r 155.4 65.1 85.6 86.6 r
1997 69.4 r 107.3 r 154.6 62.2 82.9 89.6 r
1996 65.1 r 97.8 r 150.3 60.4 82.3 92.9 r
1995 61.6 r 91.6 r 148.9 59.0 82.4 95.8 r
1994 57.7 r 84.7 r 146.6 58.1 83.1 100.6 r
1993 55.1 r 78.2 r 142.0 57.4 83.9 104.2 r
1992 52.9 r 74.1 r 140.0 56.8 85.0 107.2 r
1991 50.2 r 71.3 r 142.1 53.7 82.5 107.0 r
1990 49.1 r 73.9 r 150.4 50.8 80.8 103.4 r
1989 48.0 r 74.6 r 155.3 48.6 81.1 101.1 r
1988 47.6 r 73.8 r 154.9 47.0 82.0 98.7 r
1987 46.6 r 69.5 r 149.1 45.6 82.3 97.8 r
----------------------------------------------------------------------------------------------------
See footnotes following Table 6. September 4, 2014
r=revised Source: Bureau of Labor Statistics
Appendix table 3.
Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs.
Real
Output Compen- compen-
per hour Hours sation sation Unit
of all of all per hour per hour labor
Year persons Output persons (1) (2) costs
----------------------------------------------------------------------------------------------------
Indexes 2009=100
2013 105.3 r 106.2 r 100.9 106.5 98.0 101.1 r
2012 104.0 r 104.9 r 100.8 104.8 97.9 100.7 r
2011 104.0 r 103.6 r 99.6 102.4 97.6 98.4 r
2010 103.0 r 103.3 r 100.2 101.2 99.5 98.2 r
2009 100.0 100.0 100.0 100.0 100.0 100.0
2008 97.8 r 107.2 r 109.6 97.1 96.7 99.2 r
2007 97.3 r 110.5 r 113.6 93.8 97.0 96.4 r
2006 95.9 r 110.1 r 114.9 90.4 96.2 94.3 r
2005 96.9 r 111.1 r 114.8 89.4 98.2 92.3 r
2004 93.1 r 109.8 r 118.0 85.6 97.2 91.9 r
2003 90.2 r 109.1 r 120.9 82.8 96.6 91.8 r
2002 86.7 r 109.3 r 126.2 78.2 93.2 90.2 r
2001 81.2 r 108.0 r 132.9 75.6 91.5 93.0 r
2000 79.2 r 111.2 r 140.5 72.1 89.8 91.1 r
1999 76.4 r 110.0 r 144.1 67.4 86.8 88.3 r
1998 75.1 r 109.4 r 145.6 65.0 85.4 86.5 r
1997 72.1 r 106.7 r 147.9 61.8 82.3 85.7 r
1996 69.7 r 103.0 r 147.9 59.3 80.7 85.1 r
1995 68.5 r 103.3 r 150.8 57.2 80.0 83.6 r
1994 66.6 r 101.1 r 151.9 55.9 80.0 84.0 r
1993 65.1 r 98.0 r 150.5 54.8 80.1 84.2 r
1992 64.7 r 96.2 r 148.7 53.9 80.7 83.3 r
1991 63.9 r 94.1 r 147.4 51.5 79.1 80.6 r
1990 62.5 r 94.1 r 150.4 48.8 77.7 78.1 r
1989 61.3 r 93.5 r 152.5 46.1 77.0 75.2 r
1988 60.4 r 91.1 r 150.7 44.4 77.4 73.5 r
1987 59.0 r 87.4 r 148.3 42.3 76.5 71.8 r
----------------------------------------------------------------------------------------------------
See footnotes following Table 6. September 4, 2014
r=revised Source: Bureau of Labor Statistics
United States Department of Labor
