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Economic News Release
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Productivity and Costs News Release



Transmission of material in this release is embargoed until                                  USDL 20-2032
8:30 a.m. (ET) Thursday, November 5, 2020

Technical information:  (202) 691-5606 •  Productivity@bls.gov • www.bls.gov/lpc
Media contact:          (202) 691-5902 •  PressOffice@bls.gov


                                     PRODUCTIVITY AND COSTS 
                                Third Quarter 2020, Preliminary

Nonfarm business sector labor productivity increased 4.9 percent in the third quarter of 2020, the 
U.S. Bureau of Labor Statistics reported today, as output increased 43.5 percent and hours worked 
increased 36.8 percent. (All quarterly percent changes in this release are seasonally adjusted annual 
rates, and show what the percent change would be if the quarterly rate continued for four quarters.) 

The 4.9-percent gain in productivity in the third quarter was the second consecutive large increase in the 
measure--productivity had increased 10.6 percent in the second quarter of 2020. With the exception of 
the second quarter, productivity growth in the third quarter of 2020 was the largest quarterly increase 
since the fourth quarter of 2009 (5.7 percent). The two-quarter growth rate observed during the second 
and third quarters of 2020 (7.7 percent) is the highest rate of productivity growth over two quarters since 
the third and fourth quarters of 1965 (7.8 percent). Over the last four quarters, nonfarm business 
productivity increased 4.1 percent. (See table A1.)

Unit labor costs in the nonfarm business sector decreased at an annual rate of 8.9 percent in the third 
quarter of 2020, reflecting a 4.4-percent decrease in hourly compensation and a 4.9 percent increase in 
productivity. The third-quarter decline in unit labor costs was the largest decline since the first quarter
of 2009, when the measure fell 13.4 percent. Unit labor costs increased 2.5 percent over the last four 
quarters. (See table 2.) BLS calculates unit labor costs as the ratio of hourly compensation to labor 
productivity. Increases in hourly compensation tend to increase unit labor costs, and increases in labor 
productivity tend to reduce unit labor costs.

A decline of 9.1 percent in real hourly compensation in the third quarter of 2020 was the largest decline 
in the series, and reflects the combination of a 4.4-percent decline in hourly compensation and a large 
increase in the BLS consumer price index series for the third quarter of 5.2 percent at an annual rate. 
The decline in real hourly compensation in the third quarter was preceded by a series-high quarterly 
increase of 24.4 percent in the second quarter of 2020.

Labor productivity, or output per hour, is calculated by dividing an index of real output by an index of 
hours worked by all persons, including employees, proprietors, and unpaid family workers. The 10.6 
percent gain in nonfarm business labor productivity in second-quarter 2020 reflected a decline in output 
of 36.8 percent and a decline in hours worked of 42.9 percent; these were the largest declines in both 
series which begin in the first quarter of 1947. In contrast, the 4.9-percent increase in productivity in 
third-quarter 2020 reflected the largest gains in the output and hours series, with output increasing 43.5 
percent and hours increasing 36.8 percent. Although gains were historically large, the third-quarter 2020 
output and hours worked index levels remain below their fourth quarter of 2019 levels, the last quarter 
before the coronavirus (COVID-19) pandemic began. Specifically, output remains 4.0 percent below its 
fourth-quarter 2019 level, recovering somewhat faster than hours worked, which remains 7.5 percent 
lower. 

Manufacturing sector labor productivity increased at a 19.0 percent annual rate in the third quarter of 
2020. This is the largest increase in the series, which begins in the first quarter of 1987. Manufacturing 
output increased at a series-high 54.8 percent annual rate and hours worked increased at a series-high 
30.1 percent annual rate in the third quarter of 2020. The increase in total manufacturing productivity 
was concentrated in durable goods manufacturing, where productivity increased 44.2 percent as output 
grew 96.0 percent and hours worked rose 35.9 percent. In the nondurable goods manufacturing sector, 
productivity increased 1.2 percent as output and hours worked increased 22.7 percent and 21.2 percent, 
respectively. (See tables A1, 3, 4 and 5.) Total manufacturing sector productivity increased 0.7 percent 
over the last four quarters, as output decreased 6.1 percent and hours worked decreased 6.8 percent. (See 
tables A1 and 3.) 

Unit labor costs in the total manufacturing sector decreased 18.2 percent in the third quarter of 2020, the 
largest decline since the first quarter of 1993, when the measure fell 19.8 percent. The third-quarter 
decrease followed a 28.4-percent increase in unit labor costs in the second quarter of 2020, the largest 
increase in the series. Unit labor costs increased 3.8 percent from the same quarter a year ago. (See table 
A1.) 

The unprecedented increases in total manufacturing productivity, output, and hours in the third quarter 
of 2020 followed the largest decreases in these three measures in the second quarter of 2020, in which 
total manufacturing productivity fell 14.3 percent, output dropped 46.7 percent, and hours worked fell 
37.8 percent. Although there were historically large increases in the third quarter, the total 
manufacturing output and hours index levels did not recover to their fourth quarter of 2019 levels--the 
last quarter before the coronavirus (COVID-19) pandemic began. Output remained 6.0 percent below its 
fourth-quarter 2019 level, while hours worked was 6.9 percent lower. (See table 3.) 

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

Revised measures        

Revised and previous measures for the second quarter of 2020 are shown in tables A2 and B1, covering 
the following major sectors: nonfarm business, business, manufacturing, and nonfinancial corporations.

In the second quarter of 2020, nonfarm business sector productivity increased 10.6 percent, slightly 
more than reported on September 3, and the largest increase since the first quarter of 1971, when the 
measure rose 12.3 percent. Unit labor costs increased 8.5 percent during the second quarter, slightly 
less than previously reported. (See table B1.)

Manufacturing sector productivity fell 14.3 percent in the second quarter; this was a slightly smaller 
decline than previously reported, though still the largest decline in this series. Durable manufacturing 
productivity was not revised, falling at the same 26.9 percent rate previously reported--the largest decline 
in the series. Nondurable manufacturing productivity was revised upward to a decline of 4.4 percent. Unit 
labor costs in total manufacturing increased 28.4 percent in the second quarter, rather than increasing 
29.1 percent as reported September 3, and still represented the series-high value after revision.

Second-quarter 2020 measures of productivity and costs were revised for the nonfinancial corporate 
sector. Productivity increased 2.9 percent rather than increasing 3.1 percent as previously reported. 
Unit labor costs increased 23.5 percent rather than the preliminary estimate of a 23.3-percent increase. 
(See table A2.)

Complete annual and quarterly data series can be found on the Productivity and Costs home page: 
www.bls.gov/lpc/#data.
______________
The revised Productivity and Costs news release for third-quarter 2020 is scheduled to be released 
on Tuesday, December 8, 2020 at 8:30 a.m. (ET).





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


                                                Labor                   Hours    Hourly         Real hourly    Unit labor
Sector                  Percent change from:    productivity   Output   worked   compensation   compensation   costs
-------------------------------------------------------------------------------------------------------------------------
Nonfarm business        Previous quarter            4.9         43.5     36.8      -4.4            -9.1          -8.9
                        A year ago                  4.1         -3.4     -7.2       6.7             5.3           2.5
                        
Business                Previous quarter            6.4         43.7     35.1      -3.3            -8.1          -9.1
                        A year ago                  4.3         -3.2     -7.2       6.7             5.4           2.4
                        
Manufacturing           Previous quarter           19.0         54.8     30.1      -2.6            -7.4         -18.2
                        A Year ago                  0.7         -6.1     -6.8       4.6             3.3           3.8
 Durable                                                                                                         
 manufacturing          Previous quarter           44.2         96.0     35.9      -3.0            -7.8         -32.8
                        A year ago                  0.4         -7.4     -7.8       4.5             3.2           4.1
 Nondurable
 manufacturing          Previous quarter            1.2         22.7     21.2      -2.8            -7.5          -4.0
                        A year ago                  0.5         -4.6     -5.0       5.0             3.7           4.6
=========================================================================================================================


=========================================================================================================================
Table A2. Labor productivity growth and related measures - revised and previously published second-quarter 2020
(percent change from previous quarter at annual rate)


                                                Labor                   Hours    Hourly         Real hourly    Unit labor
Sector                                          productivity   Output   worked   compensation   compensation   costs
-------------------------------------------------------------------------------------------------------------------------       
Nonfinancial             Revised                   2.9         -39.4     -41.1      27.1            31.8         23.5
corporate          Previously published            3.1         -39.3     -41.1      27.1            31.7         23.3
=========================================================================================================================


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


                                                Labor                   Hours    Hourly         Real hourly    Unit labor
Sector                                          productivity   Output   worked   compensation   compensation   costs
-------------------------------------------------------------------------------------------------------------------------
Nonfarm business        Revised                    10.6        -36.8     -42.9      20.0            24.4          8.5
                   Previously published            10.1        -37.1     -42.9      20.0            24.4          9.0
                        
Business                Revised                     9.6        -36.8     -42.4      19.4            23.7          8.9
                   Previously published             8.9        -37.2     -42.3      19.3            23.7          9.6
                        
Manufacturing           Revised                   -14.3        -46.7     -37.8      10.1            14.1         28.4
                   Previously published           -14.6        -47.0     -38.0      10.3            14.4         29.1

 Durable                Revised                   -26.9        -57.8     -42.3       8.8            12.8         48.8
 manufacturing     Previously published           -26.9        -57.9     -42.4       9.1            13.1         49.2
                        
 Nondurable             Revised                    -4.4        -32.9     -29.8      14.6            18.8         19.9
 manufacturing     Previously published            -5.1        -33.5     -30.0      14.6            18.8         20.7
=========================================================================================================================



					TECHNICAL NOTES 


Labor Hours

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

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

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

Output

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

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

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


Labor Productivity

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

Labor Compensation

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

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

Presentation of the data

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

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

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



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

2020 III       6.4        43.7       35.1       -3.3       -8.1       -9.1       27.8        4.7  
     II        9.6 r     -36.8 r    -42.4 r     19.4 r     23.7        8.9 r    -20.3 r     -4.3 r
     I         0.0        -6.0       -6.0        9.0        7.7        9.0       -9.2        0.8  

2019 ANNUAL    1.7         2.4        0.7        3.6        1.8        1.9        0.9        1.5  

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

2018 ANNUAL    1.6         3.5        1.9        3.4        0.9        1.8        2.7        2.2  

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

2020 III       4.3        -3.2       -7.2        6.7        5.4        2.4       -1.8        0.6  
     II        2.7 r     -11.0 r    -13.3        7.6        7.1        4.8 r     -7.0 r     -0.3 r
     I         0.9         0.2       -0.8        3.3        1.2        2.4        0.3        1.5  

2019 ANNUAL    1.7         2.4        0.7        3.6        1.8        1.9        0.9        1.5  

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

2018 ANNUAL    1.6         3.5        1.9        3.4        0.9        1.8        2.7        2.2  

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

2020 III     112.9       118.0      104.5      128.1      113.1      113.5      107.9      111.1  
     II      111.2 r     107.7 r     96.9 r    129.2 r    115.6 r    116.2 r    101.5 r    109.8 r
     I       108.7       120.8      111.2      123.6      109.6      113.8      107.4      111.0  

2019 ANNUAL  108.2       121.6      112.3      120.2      107.8      111.1      109.0      110.2  

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

2018 ANNUAL  106.4       118.7      111.5      116.0      105.9      109.0      108.0      108.6  

2018 IV      106.7       119.6      112.1      117.1      106.2      109.8      108.6      109.3  
     III     106.5       119.1      111.8      116.7      106.2      109.5      108.0      108.9  
     II      106.5       118.5      111.3      115.4      105.5      108.3      108.8      108.5  
     I       106.0       117.6      110.9      114.9      105.6      108.3      106.7      107.6  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   November 5, 2020
r=revised                                                        Source: Bureau of Labor Statistics



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

2020 III       4.9        43.5       36.8       -4.4       -9.1       -8.9       26.8        4.4  
     II       10.6 r     -36.8 r    -42.9       20.0       24.4        8.5 r    -18.6 r     -3.6 r
     I        -0.3        -6.4       -6.1        9.2        7.9        9.6       -9.8        0.8  

2019 ANNUAL    1.7         2.5        0.7        3.6        1.8        1.9        1.1        1.5  

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

2018 ANNUAL    1.4         3.5        2.0        3.4        0.9        1.9        2.7        2.2  

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

2020 III       4.1        -3.4       -7.2        6.7        5.3        2.5       -1.6        0.7  
     II        2.9 r     -11.1 r    -13.6        7.8        7.4        4.8 r     -6.7 r     -0.2 r
     I         0.9         0.1       -0.8        3.4        1.2        2.5        0.2        1.5  

2019 ANNUAL    1.7         2.5        0.7        3.6        1.8        1.9        1.1        1.5  

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

2018 ANNUAL    1.4         3.5        2.0        3.4        0.9        1.9        2.7        2.2  

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

2020 III     112.4       117.6      104.6      128.2      113.2      114.0      109.0      111.9  
     II      111.1 r     107.4 r     96.7 r    129.7 r    115.9 r    116.7 r    102.7 r    110.6 r
     I       108.3       120.5      111.2      123.9      109.8      114.4      108.2      111.7  

2019 ANNUAL  107.9       121.3      112.4      120.4      107.9      111.5      110.0      110.8  

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

2018 ANNUAL  106.1       118.4      111.6      116.2      106.0      109.5      108.8      109.2  

2018 IV      106.4       119.3      112.1      117.3      106.4      110.3      109.4      109.9  
     III     106.2       118.9      111.9      116.8      106.3      110.0      108.9      109.5  
     II      106.1       118.2      111.4      115.4      105.5      108.8      109.6      109.1  
     I       105.8       117.3      110.9      115.0      105.8      108.8      107.4      108.2  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   November 5, 2020
r=revised                                                        Source: Bureau of Labor Statistics



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

2020 III          19.0           54.8           30.1           -2.6           -7.4          -18.2  
     II          -14.3 r        -46.7 r        -37.8 r         10.1 r         14.1 r         28.4 r
     I             1.6 r         -5.5 r         -7.0            6.0            4.7            4.2  

2019 ANNUAL        0.1            0.0           -0.1            2.9            1.1            2.8  

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

2018 ANNUAL        0.3            2.2            1.9            2.1           -0.3            1.8  

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

2020 III           0.7           -6.1           -6.8            4.6            3.3            3.8  
     II           -3.7          -15.6 r        -12.4            4.8            4.3            8.8 r
     I            -0.5           -2.0           -1.5            2.6            0.5            3.1  

2019 ANNUAL        0.1            0.0           -0.1            2.9            1.1            2.8  

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

2018 ANNUAL        0.3            2.2            1.9            2.1           -0.3            1.8  

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

2020 III          99.2           98.5           99.3          120.2          106.2          121.1  
     II           95.0 r         88.3 r         93.0 r        121.0 r        108.2 r        127.4 r
     I            98.7 r        103.4 r        104.7          118.1          104.7          119.6 r

2019 ANNUAL       98.7          105.0          106.4          115.5          103.5          117.1  

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

2018 ANNUAL       98.6          105.0          106.4          112.2          102.4          113.8  

2018 IV           98.9          106.0          107.1          113.2          102.7          114.5  
     III          98.7          105.5          107.0          112.3          102.1          113.8  
     II           98.6          104.5          106.0          111.3          101.8          112.9  
     I            98.3          103.8          105.7          112.2          103.2          114.2  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   November 5, 2020
r=revised                                                        Source: Bureau of Labor Statistics



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

2020 III          44.2           96.0           35.9           -3.0           -7.8          -32.8  
     II          -26.9          -57.8 r        -42.3 r          8.8 r         12.8 r         48.8 r
     I            -2.6           -9.8           -7.4            4.5            3.2            7.3  

2019 ANNUAL        0.7            0.8            0.2            2.4            0.5            1.7  

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

2018 ANNUAL        1.4            3.6            2.2            2.7            0.2            1.3  

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

2020 III           0.4           -7.4           -7.8            4.5            3.2            4.1  
     II           -8.3          -21.5          -14.3 r          4.4 r          4.0           13.9  
     I            -1.0           -3.1           -2.1            2.4            0.2            3.4  

2019 ANNUAL        0.7            0.8            0.2            2.4            0.5            1.7  

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

2018 ANNUAL        1.4            3.6            2.2            2.7            0.2            1.3  

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

2020 III         101.2           99.6           98.4          120.2          106.1          118.7  
     II           92.4 r         84.2 r         91.1 r        121.1 r        108.3 r        131.1 r
     I            99.9 r        104.4 r        104.5          118.6          105.1          118.7 r

2019 ANNUAL      100.8          107.4          106.6          116.0          104.0          115.2  

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

2018 ANNUAL      100.1          106.6          106.4          113.4          103.5          113.2  

2018 IV          100.8          108.5          107.6          113.9          103.3          113.0  
     III         100.4          107.2          106.8          113.5          103.3          113.1  
     II           99.7          105.6          105.9          112.6          103.0          112.9  
     I            99.5          104.8          105.4          113.4          104.3          114.0  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   November 5, 2020
r=revised                                                        Source: Bureau of Labor Statistics



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

2020 III           1.2           22.7           21.2           -2.8           -7.5           -4.0  
     II           -4.4 r        -32.9 r        -29.8 r         14.6           18.8           19.9 r
     I             6.1 r         -0.7 r         -6.4            9.0            7.7            2.7 r

2019 ANNUAL       -0.4           -0.9           -0.5            3.9            2.1            4.4  

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

2018 ANNUAL       -0.8            0.5            1.4            1.0           -1.4            1.8  

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

2020 III           0.5           -4.6           -5.0            5.0            3.7            4.6  
     II           -0.3 r         -9.3 r         -9.0 r          5.9 r          5.5            6.3 r
     I            -0.3           -0.8           -0.5            3.3            1.2            3.6  

2019 ANNUAL       -0.4           -0.9           -0.5            3.9            2.1            4.4  

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

2018 ANNUAL       -0.8            0.5            1.4            1.0           -1.4            1.8  

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

2020 III          97.5           98.3          100.8          120.5          106.4          123.6  
     II           97.2 r         93.4 r         96.0 r        121.4 r        108.5 r        124.8 r
     I            98.3 r        103.2 r        104.9          117.3          104.0          119.3 r

2019 ANNUAL       97.5          103.3          106.0          114.4          102.6          117.3  

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

2018 ANNUAL       98.0          104.3          106.5          110.1          100.5          112.4  

2018 IV           98.0          104.2          106.3          111.6          101.2          113.9  
     III          97.7          104.7          107.2          109.9          100.0          112.5  
     II           98.3          104.4          106.2          108.8           99.5          110.7  
     I            97.8          103.9          106.2          110.1          101.2          112.5  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   November 5, 2020
r=revised                                                        Source: Bureau of Labor Statistics



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

2020 II        2.9 r   -39.4 r  -41.1      27.1      31.8 r    23.5 r  -48.3 r   -4.2 r   -5.0 r   -4.3 r
     I         0.2      -4.0     -4.2       8.1       6.8       7.9     10.3      8.7    -44.1      0.6  

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

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

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

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

2020 II        0.9     -12.2 r  -12.9       9.0       8.5       8.0 r  -12.2 r    1.7 r  -13.3 r   -0.2  
     I         0.4      -0.2     -0.6       2.9       0.8       2.5      3.9      3.0     -8.9      1.5  

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

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

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

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

2020 II      103.6 r   102.4 r   98.9 r   130.9 r   117.0 r   126.3 r   93.5 r  115.4 r   83.5 r  110.8 r
     I       102.9     116.1    112.9     123.3     109.2     119.8    110.3    116.7     84.5    112.1  

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

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

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

2018 IV      102.1     115.5    113.1     116.6     105.8     114.3    105.3    111.3    101.7    109.9  
     III     102.2     115.4    113.0     116.3     105.8     113.8    104.7    110.8    101.1    109.4  
     II      101.5     114.4    112.7     115.4     105.5     113.6    105.2    110.8     97.6    108.9  
     I       102.1     114.3    112.0     115.3     106.0     112.9    105.2    110.4     94.2    108.1  
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                         November 5, 2020
r=revised                                                              Source: Bureau of Labor Statistics



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

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

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

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

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

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

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

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

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

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





Last Modified Date: November 05, 2020