Department of Labor Logo United States Department of Labor
Dot gov

The .gov means it's official.
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you're on a federal government site.

Https

The site is secure.
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

Economic News Release
PRINT:Print

Productivity and Costs News Release


Transmission of material in this release is embargoed until       USDL 17-1221                
8:30 a.m. (EDT) Thursday, September 7, 2017

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 2017, Revised
                                
Nonfarm business sector labor productivity increased 1.5 percent during the 
second quarter of 2017, the U.S. Bureau of Labor Statistics reported today, 
as output increased 4.0 percent and hours worked increased 2.5 percent. (All 
quarterly percent changes in this release are seasonally adjusted annual 
rates.) From the second quarter of 2016 to the second quarter of 2017, 
productivity increased 1.3 percent, reflecting a 2.8-percent increase in 
output and a 1.5-percent increase in hours worked. (See tables A1 and 2.) 

Labor productivity, or output per hour, is calculated by dividing an index of 
real output by an index of hours worked by all persons, including employees, 
proprietors, and unpaid family workers.  

Unit labor costs in the nonfarm business sector increased 0.2 percent in the 
second quarter of 2017, reflecting a 1.8-percent increase in hourly 
compensation and a 1.5-percent increase in productivity. Unit labor costs 
decreased 0.2 percent over the last four quarters. (See tables A1 and 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 output per hour tend to reduce them.

Manufacturing sector labor productivity increased 2.9 percent in the second 
quarter of 2017, as output increased 2.1 percent and hours worked decreased 
0.7 percent. The increase in manufacturing output per hour is the largest 
since the first quarter of 2012, when the measure increased 3.2 percent. 
Productivity increased 3.8 percent in the durable goods manufacturing sector 
and increased 0.5 percent in the nondurable goods sector in the second quarter 
of 2017. The larger productivity gain in durable goods industries was due 
primarily to a 2.7-percent decline in hours worked, as output increased 1.0 
percent. In contrast, the modest increase in nondurable manufacturing 
productivity reflected a 2.8-percent increase in hours worked and a 3.4-
percent increase in output. Over the last four quarters, total manufacturing 
sector productivity increased 1.1 percent, as output increased 1.6 percent and 
hours worked increased 0.5 percent. (See tables A1, 3, 4 and 5.)  Unit labor 
costs in manufacturing decreased 0.4 percent in the second quarter of 2017 and 
rose 0.1 percent from the same quarter a year ago. 

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

Preliminary second-quarter 2017 measures of productivity and costs were 
announced for the nonfinancial corporate sector. Productivity increased 4.6 
percent in the second quarter of 2017, as output increased 7.8 percent, and 
hours worked increased 3.1 percent; the increase in output was the largest 
since a 9.9-percent gain in the first quarter of 2012. Unit labor costs 
decreased 2.6 percent, as  hourly compensation increased 1.9 percent and 
productivity increased 4.6 percent. (See tables A2 and 6.)

Revised measures

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

In the second quarter of 2017, nonfarm business productivity was revised up 
0.6 percentage point to an increase of 1.5 percent. Output was revised up to 
an increase of 4.0 percent; hours were not revised. Unit labor costs increased 
0.2 percent rather than increasing 0.6 percent as reported August 9, as a 
0.6-percentage point upward revision to productivity was slightly offset by 
a 0.2-percentage point upward revision to hourly compensation.

In the second quarter of 2017, manufacturing sector productivity was revised 
up to an increase of 2.9 percent from a previously-reported increase of 2.5 
percent. Unit labor costs decreased 0.4 percent, a slightly larger decline 
than previously reported. Durable goods manufacturing productivity was not 
revised, and nondurable goods manufacturing productivity was revised up to an 
increase of 0.5 percent. 

Table B2 shows previous and revised productivity and related measures for the 
nonfarm business, business, manufacturing and nonfinancial corporate sectors 
for the first quarter of 2017.

In the first quarter of 2017, nonfarm business productivity increased at the 
same 0.1-percent rate reported in the preliminary estimate. Unit labor costs 
were revised down 0.6 percentage point to an increase of 4.8 percent. 
Manufacturing sector productivity was revised down slightly to an increase of 
0.2 percent. Hourly compensation and unit labor costs had upward revisions of 
0.2 percentage point and 0.4 percentage point, respectively. 

In the nonfinancial corporate sector, first-quarter 2017 productivity 
increased at the same 2.0-percent rate that was previously reported. Unit 
labor costs were revised up slightly to an increase of 2.3 percent. (See table
B2.)

Hourly compensation and related measures, including unit labor costs, in the 
business and nonfarm business sectors were revised back to the first quarter 
of 2014 to incorporate revised data used in the estimation of employee 
compensation. In both sectors, annual average growth in unit labor costs was 
revised up 0.1 percentage point in 2016, revised down 0.1 percentage point in 
2015, and revised up 0.1 percentage point in 2014.

Full historical annual and quarterly measures can be found on the productivity 
and costs home page: www.bls.gov/lpc/#data.

______________  

==============================================================================
                Methodology change for manufacturing output
                
Beginning with the Productivity and Costs news release scheduled for December
6, 2017, BLS plans to incorporate source data reflecting a change in
methodology for estimating manufacturing output. For more information see: 
www.bls.gov/mfp/sectoraloutputrevisions.htm.
==============================================================================


The preliminary Productivity and Costs news release for third-quarter 2017 is  
scheduled to be released on Thursday, November 2, 2017 at 8:30 a.m. (EDT).






=========================================================================================================================
Table A1. Labor productivity growth and related measures - revised second-quarter 2017
(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           1.5          4.0      2.5        1.8             2.1           0.2
                        A year ago                 1.3          2.8      1.5        1.1            -0.8          -0.2
                        
Business                Previous quarter           1.3          3.7      2.4        1.8             2.1           0.5
                        A year ago                 1.3          2.6      1.3        1.3            -0.6           0.0
                        
Manufacturing           Previous quarter           2.9          2.1     -0.7        2.5             2.8          -0.4
                        A Year ago                 1.1          1.6      0.5        1.3            -0.6           0.1
 
 Durable                Previous quarter           3.8          1.0     -2.7        3.1             3.5          -0.6
 manufacturing          A year ago                 1.3          1.6      0.3        0.9            -1.0          -0.4
                 
 Nondurable             Previous quarter           0.5          3.4      2.8        1.6             1.9           1.0
 manufacturing          A year ago                 0.8          1.5      0.8        1.9             0.0           1.1
=========================================================================================================================
Table A2. Labor productivity growth and related measures - preliminary second-quarter 2017
(percent change from previous quarter at annual rate and from same quarter a year ago)


                                                  Labor                 Hours    Hourly         Real hourly    Unit labor
Sector               Percent change from:       productivity   Output   worked   compensation   compensation   costs
-------------------------------------------------------------------------------------------------------------------------
Nonfinancial         Previous quarter              4.6          7.8      3.1        1.9             2.2          -2.6
corporate            A year ago                    1.9          3.7      1.8        1.1            -0.8          -0.8
=========================================================================================================================
Table B1. Labor productivity growth and related measures - revised and previously published second-quarter 2017
(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              1.5          4.0      2.5        1.8             2.1           0.2
                        Previously published       0.9          3.4      2.5        1.6             1.9           0.6
                        
Business                      Revised              1.3          3.7      2.4        1.8             2.1           0.5
                        Previously published       0.6          3.1      2.4        1.6             1.9           0.9
                        
Manufacturing                 Revised              2.9          2.1     -0.7        2.5             2.8          -0.4
                        Previously published       2.5          1.6     -0.9        2.2             2.5          -0.3

 Durable                      Revised              3.8          1.0     -2.7        3.1             3.5          -0.6
 manufacturing          Previously published       3.8          0.9     -2.7        3.0             3.3          -0.8
                        
 Nondurable                   Revised              0.5          3.4      2.8        1.6             1.9           1.0
 manufacturing          Previously published      -0.1          2.3      2.4        1.1             1.4           1.2
=========================================================================================================================
Table B2. Labor productivity growth and related measures - revised and previously published first-quarter 2017
(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              0.1          1.8      1.6        4.9             1.7           4.8
                        Previously published       0.1          1.8      1.6        5.5             2.3           5.4
                        
Business                      Revised             -0.8          1.4      2.1        4.3             1.1           5.1
                        Previously published      -0.8          1.4      2.1        4.9             1.7           5.7
                        
Manufacturing                 Revised              0.2          2.3      2.1        4.4             1.2           4.3
                        Previously published       0.3          2.4      2.1        4.2             1.0           3.9
 
 Durable                      Revised             -1.0          2.6      3.6        2.5            -0.6           3.6
 manufacturing          Previously published      -0.9          2.7      3.6        2.3            -0.9           3.2
              
 Nondurable                   Revised              2.5          2.0     -0.5        8.0             4.7           5.3
 manufacturing          Previously published       2.6          2.1     -0.5        7.8             4.5           5.1

Nonfinancial                  Revised              2.0          4.1      2.0        4.3             1.1           2.3
corporate               Previously published       2.0          4.0      2.0        4.2             1.0           2.2
=========================================================================================================================




				  TECHNICAL NOTES

Labor Hours 

Hours 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.

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. Business output accounted for about 75 percent of the value of GDP in 
2016. Nonfarm business, which excludes farming, also accounted for about 75 
percent of GDP in 2016.

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 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 2016. 
     
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 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. 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: 202-691-5606; 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)

2017 II        1.3 r       3.7 r      2.4        1.8 r      2.1 r      0.5 r      0.7 r      0.6  
     I        -0.8         1.4        2.1        4.3 r      1.1 r      5.1 r     -3.0 r      1.5  

2016 ANNUAL    0.0         1.6        1.6        1.0 r     -0.2 r      1.0 r      1.0 r      1.0  

2016 IV        2.0         2.2        0.2       -3.7 r     -6.5 r     -5.5 r     13.3 r      2.2  
     III       2.7         3.3        0.6        2.8 r      1.0 r      0.1 r      2.5 r      1.1  
     II        0.6         2.6        2.0        4.4 r      2.0 r      3.7 r      0.0 r      2.1  
     I        -1.1         0.4        1.5       -3.8 r     -3.9 r     -2.8 r      5.2 r      0.5  

2015 ANNUAL    1.2         3.5        2.3        2.9 r      2.8        1.7 r     -0.8        0.6  

2015 IV       -2.7         0.2        3.0        4.3        3.9        7.2       -9.3       -0.2  
     III       1.6         1.6        0.0        1.2 r     -0.3 r     -0.4 r      3.1 r      1.1  
     II        1.6         3.3        1.7        3.9 r      1.5 r      2.3 r      1.6 r      2.0  
     I         2.4         4.0        1.5        3.0 r      5.6 r      0.5 r     -2.4 r     -0.7  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2017 II        1.3 r       2.6 r      1.3        1.3 r     -0.6 r      0.0        3.2        1.3 r
     I         1.1         2.4        1.2        1.9 r     -0.7 r      0.8        3.0 r      1.7  

2016 ANNUAL    0.0         1.6        1.6        1.0 r     -0.2 r      1.0 r      1.0 r      1.0  

2016 IV        1.0         2.1        1.1       -0.1 r     -1.9 r     -1.2 r      5.1 r      1.5  
     III      -0.1         1.6        1.8        1.9 r      0.7 r      2.0 r     -0.6 r      0.9  
     II       -0.4         1.2        1.6        1.5 r      0.4 r      1.9 r     -0.4 r      0.9  
     I        -0.2         1.4        1.5        1.3 r      0.2 r      1.5 r      0.0 r      0.8  

2015 ANNUAL    1.2         3.5        2.3        2.9 r      2.8        1.7 r     -0.8        0.6  

2015 IV        0.7         2.3        1.6        3.1        2.6        2.4       -1.9        0.5  
     III       0.9         2.8        1.9        3.2        3.0 r      2.3       -1.6        0.6  
     II        1.4         4.1        2.7        3.5        3.5        2.1       -1.1        0.7  
     I         1.6         4.8        3.1        1.9        1.9 r      0.3        1.5        0.8  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2017 II      107.8 r     122.9 r    114.0 r    117.3 r    103.2 r    108.8 r    115.8 r    111.7 r
     I       107.5       121.8      113.3      116.8 r    102.7 r    108.7 r    115.6 r    111.6  

2016 ANNUAL  106.9       120.3      112.5      115.7 r    103.4 r    108.2 r    113.4 r    110.4  

2016 IV      107.7       121.4      112.7      115.6 r    102.4 r    107.3 r    116.5 r    111.2  
     III     107.2       120.8      112.7      116.7 r    104.1 r    108.9 r    112.9 r    110.5  
     II      106.5       119.8      112.5      115.9 r    103.9 r    108.8 r    112.2 r    110.2  
     I       106.3       119.0      112.0      114.6 r    103.3 r    107.8 r    112.2 r    109.7  

2015 ANNUAL  106.9       118.4      110.7      114.5 r    103.7 r    107.1 r    112.3 r    109.3  

2015 IV      106.6       118.9      111.5      115.8 r    104.4 r    108.6 r    110.8 r    109.5  
     III     107.3       118.8      110.7      114.6 r    103.4 r    106.7 r    113.5 r    109.6  
     II      106.9       118.4      110.7      114.2 r    103.5 r    106.9 r    112.6 r    109.3  
     I       106.5       117.4      110.3      113.1 r    103.1 r    106.3 r    112.2 r    108.7  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                  September 7, 2017
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)

2017 II        1.5 r       4.0 r      2.5        1.8 r      2.1 r      0.2 r      1.0 r      0.6  
     I         0.1         1.8        1.6        4.9 r      1.7 r      4.8 r     -3.9 r      0.9  

2016 ANNUAL   -0.1         1.5        1.6        1.0 r     -0.2 r      1.1 r      1.4 r      1.2  

2016 IV        1.3         2.2        1.0       -4.5 r     -7.3 r     -5.7 r     13.9 r      2.3  
     III       2.5         3.3        0.8        2.5 r      0.7 r      0.1 r      3.1 r      1.3  
     II        0.8         2.5        1.7        4.8 r      2.4 r      3.9 r      0.0 r      2.2  
     I        -1.2         0.2        1.4       -3.8 r     -3.9 r     -2.7 r      5.8 r      0.9  

2015 ANNUAL    1.3         3.4        2.1        3.1 r      3.0        1.8 r     -0.3 r      0.9  

2015 IV       -2.6         0.3        2.9        4.5        4.1        7.2       -8.8        0.1  
     III       1.3         1.3        0.0        1.1 r     -0.4 r     -0.2 r      3.0 r      1.2  
     II        1.3         3.3        2.0        3.6 r      1.2 r      2.3 r      1.5 r      1.9  
     I         2.7         4.0        1.2        3.3 r      6.0 r      0.6 r     -0.9 r      0.0  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2017 II        1.3 r       2.8 r      1.5        1.1 r     -0.8 r     -0.2        3.3        1.3  
     I         1.2         2.5        1.3        1.9       -0.7        0.7        3.1 r      1.7  

2016 ANNUAL   -0.1         1.5        1.6        1.0 r     -0.2 r      1.1 r      1.4 r      1.2  

2016 IV        0.8         2.1        1.2       -0.3 r     -2.1 r     -1.2 r      5.6 r      1.7  
     III      -0.1         1.6        1.7        1.9 r      0.8 r      2.1 r     -0.1 r      1.1  
     II       -0.4         1.1        1.5        1.6 r      0.5 r      2.0       -0.2 r      1.1  
     I        -0.3         1.3        1.6        1.3 r      0.2 r      1.6 r      0.2 r      1.0  

2015 ANNUAL    1.3         3.4        2.1        3.1 r      3.0        1.8 r     -0.3 r      0.9  

2015 IV        0.7         2.2        1.5        3.1        2.7        2.4       -1.4        0.8  
     III       0.8         2.7        1.9        3.3        3.1 r      2.4       -1.3        0.8  
     II        1.6         4.1        2.5        3.8        3.8        2.2       -0.5        1.0  
     I         1.9         4.7        2.8        2.3        2.3 r      0.4        2.0 r      1.1  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2017 II      108.1 r     123.2 r    114.0 r    117.6 r    103.4 r    108.8 r    115.8 r    111.7 r
     I       107.7       122.0      113.3      117.1 r    102.9 r    108.7 r    115.5 r    111.5  

2016 ANNUAL  107.0       120.2      112.4      116.0 r    103.7 r    108.4 r    113.4 r    110.5  

2016 IV      107.6       121.4      112.8      115.7 r    102.4 r    107.5 r    116.6 r    111.3  
     III     107.3       120.8      112.5      117.0 r    104.4 r    109.1 r    112.9 r    110.7  
     II      106.6       119.8      112.3      116.3 r    104.2 r    109.1 r    112.0 r    110.3  
     I       106.4       119.0      111.9      114.9 r    103.6 r    108.0 r    112.0 r    109.7  

2015 ANNUAL  107.1       118.5      110.7      114.8 r    103.9 r    107.2 r    111.8 r    109.1  

2015 IV      106.7       119.0      111.5      116.1 r    104.6 r    108.7 r    110.4 r    109.5  
     III     107.4       118.9      110.7      114.8 r    103.6 r    106.9 r    113.0 r    109.4  
     II      107.1       118.5      110.7      114.5 r    103.7 r    106.9 r    112.2 r    109.1  
     I       106.7       117.6      110.1      113.5 r    103.4 r    106.3 r    111.8 r    108.6  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                  September 7, 2017
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)

2017 II            2.9 r          2.1 r         -0.7 r          2.5 r          2.8 r         -0.4 r
     I             0.2 r          2.3 r          2.1            4.4 r          1.2 r          4.3 r

2016 ANNUAL        0.2            0.2            0.0            0.7           -0.5            0.6  

2016 IV            2.0            1.8           -0.2           -4.2           -7.1           -6.1  
     III          -0.5            0.2            0.7            2.6            0.8            3.1  
     II           -0.8           -0.9           -0.1            7.1            4.7            8.0  
     I             1.3            1.0           -0.3          -10.1          -10.2          -11.3  

2015 ANNUAL       -0.6            0.3            1.0            2.5            2.4            3.1  

2015 IV           -1.6           -0.6            1.0            9.1            8.7           10.9  
     III           2.3            1.1           -1.2            1.8            0.3           -0.5  
     II           -0.4           -0.3            0.0            3.5            1.1            3.9  
     I            -1.9           -2.3           -0.4            0.0            2.6            1.9  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2017 II            1.1 r          1.6 r          0.5 r          1.3 r         -0.6 r          0.1  
     I             0.2            0.8 r          0.6            2.4 r         -0.2            2.2 r

2016 ANNUAL        0.2            0.2            0.0            0.7           -0.5            0.6  

2016 IV            0.5            0.5            0.0           -1.4           -3.1           -1.9  
     III          -0.4           -0.1            0.3            1.9            0.7            2.3  
     II            0.3            0.1           -0.2            1.7            0.6            1.4  
     I             0.4            0.3           -0.1            0.8           -0.3            0.4  

2015 ANNUAL       -0.6            0.3            1.0            2.5            2.4            3.1  

2015 IV           -0.4           -0.5           -0.2            3.5            3.1            3.9  
     III          -0.5            0.1            0.6            2.6            2.4            3.1  
     II           -1.0            0.2            1.3            2.7            2.7            3.8  
     I            -0.6            1.6            2.2            1.0            1.1            1.7  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2017 II          119.9 r        129.8 r        108.3 r        113.3 r         99.7 r         94.5 r
     I           119.1 r        129.2 r        108.5          112.7 r         99.0 r         94.6 r

2016 ANNUAL      118.7          128.1          107.8          111.5           99.7           93.9  

2016 IV          119.0          128.4          107.9          111.4           98.7           93.6  
     III         118.5          127.9          107.9          112.6          100.5           95.1  
     II          118.6          127.8          107.8          111.9          100.3           94.4  
     I           118.9          128.1          107.8          110.0           99.2           92.6  

2015 ANNUAL      118.5          127.8          107.8          110.7          100.2           93.4  

2015 IV          118.5          127.8          107.9          113.0          101.9           95.4  
     III         118.9          128.0          107.6          110.6           99.8           92.9  
     II          118.3          127.6          107.9          110.1           99.7           93.1  
     I           118.4          127.7          107.9          109.1           99.4           92.2  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                  September 7, 2017
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)

2017 II            3.8            1.0 r         -2.7            3.1 r          3.5 r         -0.6 r
     I            -1.0 r          2.6 r          3.6            2.5 r         -0.6 r          3.6 r

2016 ANNUAL        0.1           -0.2           -0.3            1.0           -0.3            0.9  

2016 IV            1.8            2.0            0.2           -4.3           -7.1           -6.0  
     III           0.7            1.0            0.3            2.5            0.7            1.7  
     II            1.9            0.2           -1.6            9.5            7.0            7.5  
     I            -0.6            0.1            0.7          -11.4          -11.5          -10.9  

2015 ANNUAL       -1.3           -0.8            0.6            3.0            2.9            4.4  

2015 IV           -3.1           -2.5            0.7           10.8           10.4           14.4  
     III           2.6            0.5           -2.0            1.4           -0.2           -1.2  
     II           -0.8           -1.3           -0.5            2.8            0.5            3.6  
     I            -3.9           -4.9           -1.1            2.0            4.6            6.1  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2017 II            1.3            1.6 r          0.3            0.9 r         -1.0 r         -0.4 r
     I             0.8 r          1.4 r          0.6            2.4           -0.1 r          1.6 r

2016 ANNUAL        0.1           -0.2           -0.3            1.0           -0.3            0.9  

2016 IV            1.0            0.8           -0.1           -1.2           -3.0           -2.2  
     III          -0.3           -0.3            0.0            2.4            1.3            2.8  
     II            0.2           -0.4           -0.6            2.2            1.1            2.0  
     I            -0.5           -0.8           -0.3            0.6           -0.5            1.1  

2015 ANNUAL       -1.3           -0.8            0.6            3.0            2.9            4.4  

2015 IV           -1.3           -2.0           -0.7            4.2            3.7            5.6  
     III          -0.9           -1.2           -0.3            3.0            2.9            4.0  
     II           -1.7           -0.8            0.9            3.3            3.3            5.1  
     I            -1.3            1.1            2.4            1.6            1.7            2.9  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2017 II          120.9 r        133.8 r        110.6 r        112.5 r         98.9 r         93.0 r
     I           119.8 r        133.4 r        111.4          111.6 r         98.1 r         93.2 r

2016 ANNUAL      119.5          131.9          110.4          110.9           99.1           92.8  

2016 IV          120.1          132.6          110.4          111.0           98.3           92.4  
     III         119.6          131.9          110.3          112.2          100.1           93.8  
     II          119.4          131.6          110.2          111.5           99.9           93.4  
     I           118.8          131.5          110.7          109.0           98.2           91.7  

2015 ANNUAL      119.4          132.1          110.7          109.8           99.4           92.0  

2015 IV          119.0          131.5          110.5          112.3          101.3           94.4  
     III         119.9          132.3          110.3          109.5           98.8           91.3  
     II          119.2          132.2          110.9          109.1           98.9           91.6  
     I           119.4          132.6          111.0          108.4           98.7           90.7  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                  September 7, 2017
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)

2017 II            0.5 r          3.4 r          2.8 r          1.6 r          1.9 r          1.0 r
     I             2.5 r          2.0 r         -0.5            8.0 r          4.7 r          5.3 r

2016 ANNUAL        0.2            0.6            0.5            0.4           -0.9            0.2  

2016 IV            2.3            1.5           -0.8           -4.3           -7.2           -6.5  
     III          -2.2           -0.8            1.5            2.8            1.0            5.2  
     II           -4.5           -2.2            2.5            3.0            0.7            7.9  
     I             4.0            2.1           -1.8           -7.7           -7.8          -11.3  

2015 ANNUAL       -0.1            1.6            1.7            1.5            1.4            1.6  

2015 IV            0.0            1.5            1.4            6.1            5.7            6.0  
     III           1.6            1.8            0.2            2.8            1.2            1.2  
     II           -0.2            0.7            1.0            4.8            2.4            5.0  
     I             0.2            0.9            0.7           -3.5           -1.0           -3.7  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2017 II            0.8 r          1.5 r          0.8 r          1.9 r          0.0 r          1.1  
     I            -0.5            0.1            0.7            2.3 r         -0.3            2.8  

2016 ANNUAL        0.2            0.6            0.5            0.4           -0.9            0.2  

2016 IV           -0.2            0.2            0.3           -1.7           -3.4           -1.5  
     III          -0.7            0.1            0.9            0.9           -0.2            1.6  
     II            0.2            0.8            0.6            0.9           -0.2            0.7  
     I             1.3            1.5            0.2            1.3            0.2            0.0  

2015 ANNUAL       -0.1            1.6            1.7            1.5            1.4            1.6  

2015 IV            0.4            1.2            0.8            2.5            2.0            2.1  
     III          -0.6            1.6            2.2            1.9            1.8            2.5  
     II           -0.4            1.5            1.9            1.7            1.7            2.1  
     I             0.3            2.1            1.9           -0.2           -0.1           -0.4  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2017 II          113.5 r        118.7 r        104.5 r        114.4 r        100.6 r        100.8 r
     I           113.4 r        117.7 r        103.8          113.9 r        100.1 r        100.5 r

2016 ANNUAL      112.8          117.0          103.7          112.1          100.2           99.4  

2016 IV          112.7          117.1          103.9          111.8           99.0           99.2  
     III         112.0          116.6          104.1          113.0          100.8          100.9  
     II          112.6          116.9          103.8          112.2          100.6           99.6  
     I           114.0          117.5          103.1          111.4          100.4           97.7  

2015 ANNUAL      112.6          116.3          103.2          111.7          101.1           99.2  

2015 IV          112.8          116.9          103.6          113.6          102.5          100.7  
     III         112.8          116.5          103.2          112.0          101.1           99.2  
     II          112.4          116.0          103.2          111.2          100.8           99.0  
     I           112.5          115.8          102.9          109.9          100.2           97.7  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                  September 7, 2017
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)

2017 II        4.6       7.8      3.1       1.9       2.2      -2.6     -2.9     -2.7     14.3     -0.6  
     I         2.0       4.1 r    2.0       4.3 r     1.1 r     2.3 r   -1.0 r    1.2     -2.7 r    0.7  

2016 ANNUAL   -0.1       1.4      1.5       1.1      -0.2       1.2     -0.5      0.7     -5.3     -0.2  

2016 IV       -4.5      -3.9      0.6      -3.6      -6.5       0.9      9.2      3.5     -2.8      2.7  
     III       5.9       7.4      1.5       1.9       0.1      -3.7     -4.5     -4.0      7.3     -2.6  
     II       -2.0      -0.6      1.4       3.7       1.4       5.9      1.7      4.5    -28.8     -0.8  
     I         0.5       1.1      0.6      -1.8      -1.9      -2.3    -13.0     -5.9     47.7      0.0  

2015 ANNUAL    1.4       3.6      2.2       3.0       2.9       1.6      0.4      1.2     -5.1      0.3  

2015 IV       -1.4       1.5      3.0       3.4       3.0       4.9     13.8      7.7    -41.5     -0.9  
     III       0.7       2.5      1.8       0.5      -1.0      -0.2     -0.1     -0.2      5.3      0.6  
     II       -2.0      -0.9      1.1       2.7       0.4       4.8      4.0      4.5     -1.3      3.7  
     I         3.3       4.6      1.3       7.1       9.9       3.7     -2.2      1.8    -23.7     -2.5  
---------------------------------------------------------------------------------------------------------
                       Percent change from corresponding quarter of previous year

2017 II        1.9       3.7      1.8       1.1      -0.8      -0.8      0.1     -0.5      3.8      0.0  
     I         0.3       1.7 r    1.4       1.5      -1.0       1.3      1.2      1.3     -7.8      0.0  

2016 ANNUAL   -0.1       1.4      1.5       1.1      -0.2       1.2     -0.5      0.7     -5.3     -0.2  

2016 IV       -0.1       0.9      1.0       0.0      -1.8       0.1     -2.0     -0.6      2.3     -0.2  
     III       0.7       2.3      1.6       1.8       0.6       1.1     -1.0      0.4     -9.9     -1.1  
     II       -0.6       1.1      1.7       1.4       0.3       2.0      0.1      1.4    -10.3     -0.3  
     I        -0.6       1.1      1.6       1.2       0.1       1.7      0.7      1.4     -2.6      0.8  

2015 ANNUAL    1.4       3.6      2.2       3.0       2.9       1.6      0.4      1.2     -5.1      0.3  

2015 IV        0.1       1.9      1.8       3.4       3.0       3.3      3.7      3.4    -17.5      0.2  
     III       1.0       2.8      1.8       3.3       3.1       2.3      0.1      1.6     -6.1      0.4  
     II        1.8       3.9      2.1       3.5       3.5       1.6     -0.4      1.0     -2.1      0.5  
     I         2.7       6.0      3.2       1.9       2.0      -0.8     -1.8     -1.1      7.6      0.1  
---------------------------------------------------------------------------------------------------------
                                            Indexes 2009=100

2017 II      109.2     127.2    116.5     116.9     102.8     107.0    100.1    104.7    139.2    108.3  
     I       108.0 r   124.9 r  115.7     116.3 r   102.2 r   107.7 r  100.9 r  105.4 r  134.6 r  108.5  

2016 ANNUAL  107.7     123.5    114.6     115.4     103.1     107.1     99.9    104.7    138.0    108.2  

2016 IV      107.4     123.6    115.1     115.1     101.9     107.1    101.1    105.1    135.5    108.3  
     III     108.7     124.9    114.9     116.2     103.7     106.9     98.9    104.2    136.5    107.6  
     II      107.1     122.6    114.5     115.6     103.6     107.9    100.1    105.3    134.1    108.3  
     I       107.7     122.8    114.1     114.6     103.3     106.4     99.7    104.1    146.0    108.5  

2015 ANNUAL  107.9     121.8    112.9     114.1     103.3     105.8    100.5    104.0    145.8    108.4  

2015 IV      107.5     122.5    113.9     115.1     103.8     107.0    103.2    105.7    132.4    108.5  
     III     107.9     122.0    113.1     114.1     103.0     105.7     99.9    103.8    151.4    108.8  
     II      107.8     121.3    112.6     114.0     103.3     105.8     99.9    103.8    149.5    108.6  
     I       108.3     121.6    112.2     113.2     103.2     104.6     98.9    102.7    150.0    107.6  
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                        September 7, 2017
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 -1.5 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 2017. 
     
     
     
                               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 1978-2016 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.

Last Modified Date: September 07, 2017