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PRODUCTIVITY AND COSTS
Third Quarter 2008, preliminary
The Bureau of Labor Statistics of the U.S. Department of Labor today
reported preliminary productivity data--as measured by output per hour of all
persons--for the third quarter of 2008. The preliminary seasonally-adjusted
annual rates of productivity growth in the third quarter were:
1.3 percent in the business sector and
1.1 percent in the nonfarm business sector.
In both sectors, productivity gains were smaller than in the first two
quarters of 2008, and were the result of hours at work falling faster than
output. (See table A)
.
In manufacturing, productivity changes in the third quarter were:
-1.0 percent in manufacturing,
3.3 percent in durable goods manufacturing, and
-7.3 percent in nondurable goods manufacturing.
Manufacturing productivity fell for the second consecutive quarter; the
third-quarter decline was concentrated in the nondurable goods sector,
whereas the second-quarter decrease was due to a drop in durable goods
productivity. Output and hours in manufacturing, which includes about 12
percent of U.S. business sector employment, tend to vary more from quarter to
quarter than data for the aggregate business and nonfarm business sectors.
Third-quarter measures are summarized in table A and appear in detail in
tables 1 through 5.
The data sources and methods used in the preparation of the
manufacturing series differ from those used in preparing the business and
nonfarm business series, and these measures are not directly comparable.
Output measures for business and nonfarm business are based on measures of
gross domestic product prepared by the Bureau of Economic Analysis of the
U.S. Department of Commerce. Quarterly output measures for manufacturing
reflect indexes of industrial production independently prepared by the Board
of Governors of the Federal Reserve System. See Technical Notes for further
information on data sources.
------------------------------------------------------------------------------
Table A. Productivity and costs: Preliminary third-quarter 2008 measures
(Seasonally adjusted annual rates)
------------------------------------------------------------------------------
Real
Hourly hourly Unit
Produc- compen- compen- labor
Sector tivity Output Hours sation sation costs
------------------------------------------------------------------------------
Percent change from preceding quarter
Business 1.3 -1.5 -2.8 4.7 -1.9 3.4
Nonfarm business 1.1 -1.7 -2.7 4.7 -1.9 3.6
Manufacturing -1.0 -5.8 -4.9 5.0 -1.6 6.1
Durable 3.3 -4.7 -7.7 6.0 -0.7 2.6
Nondurable -7.3 -7.0 0.4 3.7 -2.9 11.8
------------------------------------------------------------------------------
Percent change from same quarter a year ago
Business 1.8 0.3 -1.5 4.1 -1.1 2.3
Nonfarm business 2.0 0.3 -1.7 4.3 -0.9 2.3
Manufacturing 1.1 -2.6 -3.7 5.1 -0.2 3.9
Durable 1.9 -2.6 -4.4 5.1 -0.2 3.1
Nondurable -0.2 -2.7 -2.5 5.3 0.0 5.5
------------------------------------------------------------------------------
Business
Business sector output per hour grew 1.3 percent in the
third quarter of 2008 as output decreased 1.5 percent and hours
worked by all persons--employees, proprietors, and unpaid family
workers--fell 2.8 percent (seasonally adjusted annual rates).
The decline in output was the largest since the third quarter of
2001, when output fell 3.1 percent. Hours had not dropped as
much in one quarter since the first quarter of 2002, (-3.1
percent). From the third quarter of 2007 to the third quarter of
2008, productivity increased 1.8 percent; output edged up 0.3
percent and hours decreased 1.5 percent in the business sector.
Hourly compensation in the business sector increased at an
annual rate of 4.7 percent during the third quarter of 2008. This
measure includes wages and salaries, supplements, employer
contributions to employee benefit plans, and taxes. Real hourly
compensation, which takes into account changes in consumer
prices, decreased by 1.9 percent in the third quarter of 2008.
Changes in unit labor costs approximate the change in hourly
compensation less the change in productivity. In the third
quarter of 2008, unit labor costs rose at a 3.4 percent annual
rate. The implicit price deflator for business sector output,
which reflects changes in both unit labor cost and unit nonlabor
payments, rose 4.5 percent in the third quarter of 2008.
Nonfarm business
Productivity increased 1.1 percent in the nonfarm business
sector in the third quarter of 2008; output and hours fell 1.7
percent and 2.7 percent, respectively. The decline in output was
the largest since third-quarter 2001 (-2.9 percent), and the drop
in hours was the largest since the first quarter of 2002 (-3.4
percent). Over the last four quarters, nonfarm business output
per hour increased 2.0 percent; output rose 0.3 percent, and
hours fell 1.7 percent. From 2000 to 2007, nonfarm productivity
increased at a 2.5 percent average annual rate, as output grew
2.5 percent and hours edged up 0.1 percent on average.
Nonfarm hourly compensation increased at a 4.7 percent
annual rate in the third quarter of 2008. Real hourly
compensation decreased 1.9 percent in the third quarter, as
consumer prices increased 6.7 percent (seasonally adjusted annual
rates).
Unit labor costs in the nonfarm business sector increased
3.6 percent during the third quarter of 2008 and 2.3 percent over
the last four quarters. The implicit price deflator for nonfarm
business output increased 5.0 percent in the third quarter of
2008.
Manufacturing
Manufacturing output per hour decreased 1.0 percent in the
third quarter of 2008; output fell 5.8 percent and hours of all
persons declined 4.9 percent (seasonally adjusted annual rates).
Productivity increased 3.3 percent in durable goods industries as
the 4.7 percent decline in output was outpaced by a 7.7 percent
decline in hours. By contrast, productivity declined 7.3 percent
in the nondurable goods sector in the third quarter as output
fell 7.0 percent while hours increased 0.4 percent. Total
manufacturing productivity grew 1.1 percent from the third
quarter of 2007 to the third quarter of 2008, compared to a 3.7
percent average annual growth rate from 2000 to 2007.
Hourly compensation of manufacturing workers increased 5.0
percent during the third quarter of 2008, reflecting a 6.0
percent gain in the durable goods subsector and a 3.7 percent
gain in nondurable goods industries. Real hourly compensation
for total manufacturing decreased 1.6 percent in the third
quarter.
Unit labor costs in manufacturing rose 6.1 percent in the
third quarter of 2008, reflecting a 2.6 percent increase in
durable goods industries and an 11.8 percent jump in nondurable
goods industries. Total manufacturing sector unit labor costs
have increased 3.9 percent since the third quarter of 2007.
Revised Measures
Revised and previous measures for the second quarter of
2008, for the business, nonfarm business, and manufacturing
sectors are compared in table B. Hours declined at the same
rates reported September 4 in all sectors. In the business and
nonfarm business sectors output was revised downward, resulting
in a corresponding downward revision to productivity. In the
manufacturing sector productivity change, while negative, was
revised up due to a small upward revision to output.
------------------------------------------------------------------------------
Table B. Previous and revised productivity and related measures
Quarterly percent change at seasonally adjusted annual rate
------------------------------------------------------------------------------
Real
Hourly hourly Unit
Produc- compen- compen- labor
Sector tivity Output Hours sation sation costs
-------------------------------------------------------------------------------
Second quarter 2008
Business:
Previous 4.3 3.2 -1.0 4.0 -1.0 -0.4
Revised 3.7 2.6 -1.0 3.8 -1.2 0.1
Nonfarm business:
Previous 4.3 3.4 -0.8 3.7 -1.3 -0.5
Revised 3.6 2.8 -0.8 3.5 -1.4 -0.1
Manufacturing:
Previous -2.2 -3.7 -1.5 3.9 -1.1 6.2
Revised -1.9 -3.4 -1.5 3.8 -1.2 5.8
-------------------------------------------------------------------------------
In all three sectors, hourly compensation was revised down
slightly. In the business and nonfarm business sectors, unit
labor costs were revised upwards--this was the result of
productivity being revised down more than hourly compensation.
In manufacturing both the upward revision to productivity and the
downward revision to hourly compensation contributed to a
downward revision to unit labor costs.
Revised measures: Nonfinancial Corporations
Productivity and cost measures for nonfinancial corporations
for the second quarter of 2008 also were revised. Revised
productivity growth was 8.6 percent due to an upward revision in
output; hours were virtually unchanged (table C). Productivity
grew 3.0 percent in the sector when measured over the four
quarters ending with the second quarter (table 6).
------------------------------------------------------------------------------
Table C. Nonfinancial corporations: Previous and revised productivity and
cost measures
Quarterly percent changes at seasonally adjusted annual rates
------------------------------------------------------------------------------
Real
Hourly hourly Unit Implicit
Produc- compen- compen- labor Unit price
tivity Output Hours sation sation costs profits deflator
------------------------------------------------------------------------------
Second quarter 2008
Previous 5.6 3.8 -1.7 3.7 -1.2 -1.8 -24.7 -3.6
Revised 8.6 6.9 -1.6 3.7 -1.3 -4.6 -8.4 -3.9
------------------------------------------------------------------------------
Unit labor costs were revised down from -1.8 percent to -4.6
percent--the result of productivity being revised up while hourly
compensation remained unrevised.
Next release date
The next release of Productivity and Costs is scheduled for
8:30 AM EST, Wednesday, December 3, 2008. It will present third-
quarter measures for nonfinancial corporations and revised third-
quarter measures for business, nonfarm business, and
manufacturing.
TECHNICAL NOTES
Labor Hours: Hours data for the labor productivity and cost measures include
hours for all persons working in the sector—wage and salary workers, the
self-employed and unpaid family workers. The primary source of hours and
employment data is the BLS Current Employment Statistics (CES) program, which
provides monthly survey data on the number of jobs held by wage and salary
workers in nonfarm establishments. The CES also provides average weekly paid
hours of production and nonsupervisory workers in these establishments.
Weekly paid hours are adjusted to hours at work using data from the National
Compensation Survey (NCS). The BLS Hours at Work survey, conducted for this
purpose, was used for earlier years. The Office of Productivity and
Technology estimates average weekly hours at work for nonproduction and
supervisory workers using information from the Current Population Survey
(CPS), the CES, and the NCS.
Data from the CPS are used for farm labor, nonfarm proprietors, and
nonfarm unpaid family workers. Estimates of labor input for government
enterprises are derived from the CPS, the CES, and the National Income and
Product Accounts (NIPA) prepared by the Bureau of Economic Analysis (BEA) of
the Department of Commerce.
The CES measures jobs, counting a person who is employed by two or more
establishments at each place of employment. In contrast, the CPS features
measures of employment that count each person only once and classify each
person according to his or her primary job; hours worked at all jobs by that
person accrue to his or her primary job. However, the CPS also collects more
detailed information on employment and hours worked at primary jobs and all
other jobs, separately. The BLS productivity measures use the more detailed
information on employment and hours to assign all hours worked to the correct
industrial sector and avoid duplicating hours data from the CES.
Output: Business sector output is a chain-type, current-weighted index
constructed after excluding from gross domestic product (GDP) the following
outputs: general government, nonprofit institutions, and private households
(including owner-occupied housing). Corresponding exclusions also are made in
labor inputs. Business output accounted for about 78 percent of the value of
GDP in 2000. Nonfarm business, which excludes farming, accounted for about 77
percent of GDP in 2000.
Annual indexes for manufacturing and its durable and nondurable goods
components are constructed by deflating current-dollar industry value of
production data from the U.S. Bureau of the Census with deflators from the
BLS. These deflators are based on data from the BLS producer price program
and other sources. The industry shipments are aggregated using annual
weights, and intrasector transactions are removed. Quarterly manufacturing
output measures are based on the index of industrial production prepared
monthly by the Board of Governors of the Federal Reserve System, adjusted to
be consistent with annual indexes of manufacturing sector output prepared by
BLS. Durables include the following 3-digit NAICS industries: wood product
manufacturing; nonmetallic mineral product manufacturing; primary metal
manufacturing; fabricated metal product manufacturing; machinery
manufacturing; computer and electronic product manufacturing; electrical
equipment and appliance manufacturing; transportation equipment
manufacturing; furniture and related product manufacturing; and miscellaneous
manufacturing. Nondurables include: food manufacturing; beverage and tobacco
product manufacturing; textile mills; textile product mills; apparel
manufacturing; leather and allied product manufacturing; paper manufacturing;
printing and related support activities; petroleum and coal products
manufacturing; chemical manufacturing; and plastics and rubber products
manufacturing.
Nonfinancial corporate output is a chain-type, current-weighted index
calculated on the basis of the costs incurred and the incomes earned from
production. The output measure excludes the following outputs from GDP:
general government; nonprofit institutions; private households;
unincorporated business; and those corporations classified as offices of bank
holding companies, offices of other holding companies, or offices in the
finance and insurance sector. Nonfinancial corporations accounted for about
54 percent of the value of GDP in 2000.
Productivity: These productivity measures describe the relationship between
real output and the labor time involved in its production. They show the
changes from period to period in the amount of goods and services produced
per hour. Although these measures relate output to hours at work of all
persons engaged in a sector, they do not measure the specific contribution of
labor, capital, or any other factor of production. Rather, they reflect the
joint effects of many influences, including changes in technology; capital
investment; level of output; utilization of capacity, energy, and materials;
the organization of production; managerial skill; and the characteristics and
effort of the work force.
Labor Compensation: Estimates of labor compensation by major sector, required
for measures of hourly compensation and unit labor costs, are based primarily
on employee compensation data from the NIPA, prepared by the BEA. The
compensation of employees in general government, nonprofit institutions and
private households are subtracted from compensation of domestic employees to
derive employee compensation for the business sector. The labor compensation
of proprietors cannot be explicitly identified and must be estimated. This
is done by assuming that proprietors have the same hourly compensation as
employees in the same sector. The quarterly labor productivity and cost
measures do not contain estimates of compensation for unpaid family workers.
Unit Labor Costs: The measures of unit labor costs in this release describe
the relationship between compensation per hour and productivity, or real
output per hour, and can be used as an indicator of inflationary pressure on
producers. Increases in hourly compensation increase unit labor costs; labor
productivity increases offset compensation increases and lower unit labor
costs.
Presentation of the data: The quarterly data in this release are presented
in three ways; as index number series where 1992=100, as percent changes from
the corresponding quarter of the previous year, and as percent changes from
the previous quarter presented at a compound annual rate. Annual data are
presented both as index number series and percent changes from the previous
year.
The index numbers and rates of change reported in the productivity and
costs news release are rounded to one decimal place. All percent changes in
this release and on the BLS web site are calculated using index numbers to
three decimal places. These index numbers are available at the BLS web site,
http://www.bls.gov/data/home.htm, or by contacting the BLS Division of Major
Sector Productivity. (Telephone 202-691-5606 or email DPRWEB@BLS.GOV)
Information in this release will be made available to sensory-impaired
individuals upon request. Voice phone: 202-691-5606; Federal Relay Service
number: 1-800-877-8339.
Table 1. Business sector: Productivity, hourly compensation, unit labor costs, and prices,
seasonally adjusted
Real
Year Output per Hours Compensa- compensa- Unit Unit non- Implicit
and hour of of all tion per tion per labor labor pay- price
quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4)
---------------------------------------------------------------------------------------------------------
Indexes 1992=100
2006 I 136.1 162.8 119.6 168.0 120.7 123.5 133.4 127.2
II 136.6 164.0 120.1 168.1 119.7 123.1 136.2 128.0
III 135.9 164.1 120.8 169.0 119.1 124.3 136.2 128.8
IV 135.9 164.8 121.2 172.6 122.1 127.0 133.4 129.4
ANNUAL 136.1 163.9 120.4 169.5 120.4 124.5 134.8 128.3
2007 I 135.9 164.5 121.0 174.7 122.4 128.5 134.3 130.7
II 137.6 166.8 121.2 175.5 121.6 127.5 137.4 131.2
III 139.7 169.0 121.0 177.0 121.9 126.7 139.7 131.6
IV 139.7 168.8 120.8 178.9 121.7 128.1 139.2 132.2
ANNUAL 138.2 167.3 121.0 176.5 121.9 127.7 137.7 131.4
2008 I 140.5 169.1 120.3 180.6 121.5 128.5 140.2 132.9
II r141.8 r170.2 r120.0 r182.2 r121.2 r128.6 r140.9 r133.2
III 142.2 169.5 119.2 184.3 120.6 129.6 143.1 134.7
---------------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2006 I 2.6 5.6 3.0 5.5 3.6 2.8 3.1 3.0
II 1.4 2.9 1.5 0.2 -3.3 -1.2 8.6 2.6
III -2.0 0.3 2.4 2.0 -1.9 4.1 -0.1 2.4
IV 0.2 1.7 1.5 9.0 10.6 8.8 -8.0 1.9
ANNUAL 0.9 3.0 2.1 3.8 0.5 2.9 3.3 3.0
2007 I -0.1 -0.7 -0.6 4.8 1.1 4.8 2.8 4.0
II 5.0 5.6 0.6 1.9 -2.6 -2.9 9.6 1.7
III 6.2 5.5 -0.7 3.6 0.8 -2.5 6.9 1.1
IV 0.1 -0.6 -0.7 4.4 -0.6 4.3 -1.6 2.0
ANNUAL 1.5 2.0 0.5 4.2 1.3 2.6 2.1 2.4
2008 I 2.3 0.7 -1.6 3.6 -0.6 1.3 3.1 2.0
II r3.7 r2.6 -1.0 r3.8 r-1.2 r0.1 r2.0 0.9
III 1.3 -1.5 -2.8 4.7 -1.9 3.4 6.3 4.5
---------------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2006 I 1.3 3.6 2.3 4.3 0.5 2.9 3.9 3.3
II 1.7 3.5 1.8 4.0 0.1 2.3 5.2 3.4
III 0.2 2.4 2.2 2.9 -0.4 2.7 3.5 3.0
IV 0.5 2.6 2.1 4.1 2.1 3.6 0.7 2.5
ANNUAL 0.9 3.0 2.1 3.8 0.5 2.9 3.3 3.0
2007 I -0.1 1.0 1.2 3.9 1.5 4.1 0.7 2.7
II 0.7 1.7 1.0 4.4 1.7 3.6 0.9 2.5
III 2.8 3.0 0.2 4.8 2.4 1.9 2.6 2.2
IV 2.8 2.4 -0.3 3.7 -0.3 0.9 4.3 2.2
ANNUAL 1.5 2.0 0.5 4.2 1.3 2.6 2.1 2.4
2008 I 3.4 2.8 -0.6 3.4 -0.7 0.0 4.4 1.7
II r3.0 r2.0 -1.0 3.9 -0.4 r0.8 r2.6 1.5
III 1.8 0.3 -1.5 4.1 -1.1 2.3 2.4 2.3
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6. November 6, 2008
r=revised Source: Bureau of Labor Statistics
Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs,and prices,
seasonally adjusted
Real
Year Output per Hours Compensa- compensa- Unit Unit non- Implicit
and hour of of all tion per tion per labor labor pay- price
quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4)
---------------------------------------------------------------------------------------------------------
Indexes 1992=100
2006 I 135.1 163.2 120.8 166.8 119.8 123.5 135.5 127.9
II 135.7 164.3 121.1 167.1 118.9 123.2 138.6 128.8
III 135.0 164.4 121.8 167.9 118.3 124.4 138.3 129.5
IV 135.0 165.0 122.2 171.7 121.4 127.1 134.8 130.0
ANNUAL 135.2 164.2 121.5 168.4 119.6 124.6 136.8 129.1
2007 I 135.0 164.7 122.0 173.7 121.8 128.7 135.2 131.1
II 136.4 167.0 122.4 174.1 120.7 127.7 138.2 131.5
III 138.3 169.2 122.3 175.5 120.8 126.9 140.3 131.8
IV 138.6 168.9 121.9 177.8 120.9 128.3 139.8 132.5
ANNUAL 137.1 167.5 122.2 175.3 121.1 127.9 138.4 131.7
2008 I 139.5 169.3 121.4 179.5 120.8 128.7 141.0 133.2
II r140.8 r170.5 r121.1 r181.1 r120.4 r128.6 r141.9 r133.5
III 141.1 169.8 120.3 183.1 119.8 129.8 144.4 135.2
---------------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2006 I 2.5 6.0 3.3 5.2 3.3 2.6 3.9 3.1
II 1.8 2.9 1.1 0.7 -2.8 -1.1 9.4 2.9
III -2.1 0.3 2.4 1.9 -2.0 4.1 -0.9 2.1
IV 0.2 1.4 1.2 9.3 11.0 9.1 -9.5 1.5
ANNUAL 1.0 3.2 2.2 3.8 0.5 2.8 3.6 3.1
2007 I 0.0 -0.9 -0.8 4.9 1.2 4.9 0.9 3.4
II 4.1 5.8 1.6 0.8 -3.6 -3.2 9.4 1.5
III 5.8 5.5 -0.3 3.3 0.5 -2.4 6.3 0.9
IV 0.8 -0.7 -1.6 5.3 0.3 4.5 -1.5 2.1
ANNUAL 1.4 2.0 0.5 4.1 1.3 2.7 1.2 2.1
2008 I 2.6 0.9 -1.7 3.8 -0.4 1.2 3.6 2.1
II r3.6 r2.8 -0.8 r3.5 r-1.4 r-0.1 r2.4 0.9
III 1.1 -1.7 -2.7 4.7 -1.9 3.6 7.3 5.0
---------------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2006 I 1.3 3.7 2.4 4.2 0.5 2.9 4.3 3.4
II 1.7 3.7 2.0 3.9 0.0 2.2 5.9 3.6
III 0.3 2.6 2.3 2.9 -0.5 2.6 3.8 3.1
IV 0.6 2.6 2.0 4.3 2.2 3.6 0.5 2.4
ANNUAL 1.0 3.2 2.2 3.8 0.5 2.8 3.6 3.1
2007 I 0.0 0.9 1.0 4.2 1.7 4.2 -0.2 2.5
II 0.5 1.6 1.1 4.2 1.5 3.7 -0.2 2.1
III 2.5 2.9 0.4 4.5 2.1 2.0 1.5 1.8
IV 2.7 2.4 -0.3 3.6 -0.4 0.9 3.7 2.0
ANNUAL 1.4 2.0 0.5 4.1 1.3 2.7 1.2 2.1
2008 I 3.3 2.8 -0.5 3.3 -0.8 0.0 4.3 1.6
II r3.2 r2.1 -1.1 4.0 r-0.3 r0.8 r2.6 1.5
III 2.0 0.3 -1.7 4.3 -0.9 2.3 2.9 2.5
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6. November 6, 2008
r=revised Source: Bureau of Labor Statistics
Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
Real
Year Output per Hours Compensa- compensa- Unit
and hour of of all tion per tion per labor
quarter all persons Output persons hour (1) hour (2) costs
--------------------------------------------------------------------------------------------------
Indexes 1992=100
2006 I 172.6 147.2 85.3 170.9 122.7 99.0
II 172.7 147.4 85.4 169.5 120.7 98.2
III 174.5 148.0 84.8 170.3 120.0 97.6
IV 175.4 147.4 84.0 174.6 123.5 99.5
ANNUAL 173.8 147.5 84.9 171.3 121.7 98.6
2007 I 177.0 147.8 83.5 176.9 124.0 100.0
II 178.7 149.6 83.7 176.4 122.3 98.7
III 180.6 151.2 83.7 176.4 121.4 97.6
IV 182.5 151.0 82.8 179.7 122.2 98.5
ANNUAL 179.7 149.9 83.4 177.3 122.5 98.7
2008 I r184.0 r150.7 81.9 181.4 122.1 r98.6
II r183.1 r149.4 r81.6 r183.1 r121.7 r100.0
III 182.6 147.2 80.6 185.3 121.2 101.5
--------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2006 I -0.6 1.8 2.4 14.3 12.3 15.0
II 0.2 0.6 0.4 -3.1 -6.5 -3.3
III 4.3 1.6 -2.5 1.8 -2.1 -2.3
IV 2.2 -1.7 -3.8 10.4 12.1 8.0
ANNUAL 1.1 1.8 0.8 4.1 0.8 3.0
2007 I 3.6 1.2 -2.3 5.5 1.8 1.8
II 3.8 4.9 1.0 -1.1 -5.5 -4.8
III 4.5 4.3 -0.2 -0.1 -2.8 -4.4
IV 4.2 -0.4 -4.4 7.8 2.7 3.4
ANNUAL 3.4 1.6 -1.7 3.5 0.7 0.1
2008 I 3.3 r-0.8 -4.0 3.8 -0.5 0.5
II r-1.9 r-3.4 -1.5 r3.8 r-1.2 r5.8
III -1.0 -5.8 -4.9 5.0 -1.6 6.1
--------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2006 I 1.5 2.4 0.9 5.4 1.6 3.8
II 0.4 2.1 1.7 3.3 -0.6 2.9
III 0.9 2.3 1.4 2.3 -1.0 1.4
IV 1.5 0.6 -0.9 5.6 3.6 4.1
ANNUAL 1.1 1.8 0.8 4.1 0.8 3.0
2007 I 2.6 0.4 -2.1 3.5 1.1 0.9
II 3.5 1.5 -1.9 4.1 1.4 0.6
III 3.5 2.1 -1.3 3.6 1.2 0.0
IV 4.0 2.5 -1.5 2.9 -1.0 -1.1
ANNUAL 3.4 1.6 -1.7 3.5 0.7 0.1
2008 I r4.0 r2.0 -1.9 2.5 -1.6 -1.4
II r2.5 r-0.1 -2.5 3.8 r-0.5 r1.3
III 1.1 -2.6 -3.7 5.1 -0.2 3.9
--------------------------------------------------------------------------------------------------
See footnotes following Table 6. November 6, 2008
r=revised Source: Bureau of Labor Statistics
Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
Real
Year Output per Hours Compensa- compensa- Unit
and hour of of all tion per tion per labor
quarter all persons Output persons hour (1) hour (2) costs
--------------------------------------------------------------------------------------------------
Indexes 1992=100
2006 I 198.8 179.6 90.3 166.0 119.2 83.5
II 198.9 180.5 90.7 164.6 117.1 82.7
III 201.7 181.1 89.8 165.3 116.5 81.9
IV 202.4 180.1 89.0 170.2 120.4 84.1
ANNUAL 200.4 180.3 90.0 166.5 118.3 83.1
2007 I 204.4 180.3 88.2 173.0 121.3 84.7
II 207.9 183.9 88.4 172.5 119.6 83.0
III 210.9 186.9 88.6 172.2 118.6 81.7
IV 214.3 187.0 87.3 175.5 119.4 81.9
ANNUAL 209.4 184.5 88.1 173.3 119.7 82.8
2008 I r215.5 r186.9 86.7 176.6 118.9 r82.0
II r213.2 r184.2 r86.4 r178.3 r118.6 r83.7
III 214.9 182.0 84.7 181.0 118.4 84.2
--------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2006 I -1.8 0.4 2.3 13.7 11.7 15.9
II 0.3 2.1 1.8 -3.3 -6.6 -3.6
III 5.7 1.2 -4.3 1.6 -2.3 -3.9
IV 1.4 -2.1 -3.4 12.6 14.4 11.1
ANNUAL 2.2 3.3 1.1 3.9 0.6 1.7
2007 I 3.9 0.4 -3.4 6.7 3.0 2.7
II 7.1 8.2 1.0 -1.2 -5.5 -7.7
III 6.0 6.8 0.8 -0.7 -3.3 -6.2
IV 6.6 0.3 -6.0 7.9 2.8 1.2
ANNUAL 4.5 2.3 -2.0 4.1 1.3 -0.3
2008 I r2.1 r-0.4 -2.5 2.5 -1.7 0.4
II r-4.2 r-5.6 r-1.4 r3.9 r-1.1 r8.5
III 3.3 -4.7 -7.7 6.0 -0.7 2.6
--------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2006 I 3.2 4.8 1.6 4.9 1.1 1.6
II 2.0 4.6 2.5 3.1 -0.8 1.1
III 2.2 3.6 1.4 1.9 -1.5 -0.4
IV 1.4 0.4 -1.0 5.9 3.9 4.5
ANNUAL 2.2 3.3 1.1 3.9 0.6 1.7
2007 I 2.8 0.4 -2.4 4.3 1.8 1.4
II 4.5 1.8 -2.5 4.8 2.1 0.3
III 4.6 3.2 -1.3 4.2 1.8 -0.3
IV 5.9 3.9 -1.9 3.1 -0.8 -2.6
ANNUAL 4.5 2.3 -2.0 4.1 1.3 -0.3
2008 I 5.4 r3.7 -1.7 2.1 -2.0 -3.2
II r2.5 r0.2 -2.3 3.4 r-0.9 r0.8
III 1.9 -2.6 -4.4 5.1 -0.2 3.1
--------------------------------------------------------------------------------------------------
See footnotes following Table 6. November 6, 2008
r=revised Source: Bureau of Labor Statistics
Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
Real
Year Output per Hours Compensa- compensa- Unit
and hour of of all tion per tion per labor
quarter all persons Output persons hour (1) hour (2) costs
--------------------------------------------------------------------------------------------------
Indexes 1992=100
2006 I 148.0 115.0 77.7 178.0 127.8 120.2
II 148.4 114.8 77.3 176.6 125.7 119.0
III 149.0 115.4 77.4 177.8 125.3 119.3
IV 150.3 115.1 76.6 180.4 127.6 120.0
ANNUAL 148.9 115.1 77.2 178.2 126.6 119.6
2007 I 151.2 115.6 76.5 181.9 127.5 120.3
II 151.4 116.0 76.6 181.4 125.8 119.9
III 152.7 116.4 76.3 181.8 125.2 119.1
IV 152.9 116.1 75.9 185.3 126.0 121.2
ANNUAL 152.0 116.0 76.3 182.6 126.1 120.1
2008 I r155.0 r115.7 74.6 188.0 126.5 r121.3
II r155.2 r115.4 r74.3 r189.6 r126.1 r122.2
III 152.3 113.3 74.4 191.3 125.2 125.6
--------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2006 I 1.0 3.6 2.6 15.5 13.4 14.4
II 1.1 -0.9 -1.9 -3.1 -6.5 -4.1
III 1.5 2.2 0.6 2.6 -1.4 1.1
IV 3.5 -1.1 -4.4 6.1 7.7 2.5
ANNUAL 0.2 0.3 0.1 4.5 1.1 4.3
2007 I 2.5 2.0 -0.5 3.3 -0.3 0.8
II 0.4 1.3 0.9 -1.0 -5.3 -1.4
III 3.5 1.6 -1.9 0.7 -2.0 -2.7
IV 0.6 -1.1 -1.7 7.9 2.8 7.3
ANNUAL 2.1 0.9 -1.2 2.5 -0.3 0.4
2008 I r5.8 -1.3 -6.7 6.0 1.7 0.3
II r0.5 r-1.2 r-1.7 r3.5 r-1.5 r3.0
III -7.3 -7.0 0.4 3.7 -2.9 11.8
--------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2006 I 0.2 -0.1 -0.3 6.2 2.4 6.0
II -0.7 -0.6 0.1 3.5 -0.4 4.2
III -0.4 1.0 1.4 3.1 -0.2 3.6
IV 1.8 0.9 -0.8 5.1 3.0 3.2
ANNUAL 0.2 0.3 0.1 4.5 1.1 4.3
2007 I 2.1 0.5 -1.6 2.2 -0.2 0.0
II 2.0 1.1 -0.9 2.7 0.1 0.7
III 2.5 0.9 -1.5 2.3 -0.1 -0.2
IV 1.7 0.9 -0.8 2.7 -1.2 1.0
ANNUAL 2.1 0.9 -1.2 2.5 -0.3 0.4
2008 I 2.5 0.1 -2.4 3.4 -0.8 0.8
II r2.6 r-0.5 -3.0 4.5 0.2 1.9
III -0.2 -2.7 -2.5 5.3 0.0 5.5
--------------------------------------------------------------------------------------------------
See footnotes following Table 6. November 6, 2008
r=revised Source: Bureau of Labor Statistics
Table 6. Nonfinancial corporate sector: Productivity, hourly compensation, unit labor costs, unit profits,
and prices, seasonally adjusted
Output Hourly Real Unit Total Unit Implicit
Year per all- compen- hourly Unit non- unit pro- price
and employee Employee sation compen- labor labor costs fits deflator
quarter hour Output hours (1) sation(2) costs costs(6) (7) (8) (4)
----------------------------------------------------------------------------------------------------------
Indexes 1992=100
2006 I 146.3 176.2 120.4 164.5 118.1 112.4 112.9 112.5 182.5 118.8
II 146.0 176.5 120.9 164.5 117.0 112.6 114.4 113.1 183.1 119.4
III 147.0 178.5 121.5 165.1 116.3 112.3 114.2 112.8 193.0 120.0
IV 146.0 177.8 121.8 167.8 118.7 114.9 116.2 115.3 173.9 120.5
ANNUAL 146.3 177.3 121.1 165.5 117.5 113.1 114.4 113.4 183.1 119.7
2007 I 146.2 177.8 121.7 170.3 119.4 116.5 117.2 116.7 171.8 121.6
II 147.4 179.7 121.9 171.3 118.7 116.2 117.4 116.5 172.5 121.5
III 148.1 180.9 122.1 172.5 118.7 116.5 117.8 116.8 166.8 121.3
IV 148.8 181.7 122.1 175.0 119.0 117.6 118.9 117.9 155.9 121.3
ANNUAL 147.6 180.0 122.0 172.3 119.0 116.7 117.9 117.0 166.7 121.4
2008 I 148.7 181.1 121.8 176.2 118.6 118.5 119.0 118.6 150.3 121.5
II r151.8 r184.2 r121.3 r177.8 r118.2 r117.1 r119.1 r117.7 r147.0 r120.3
----------------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2006 I 4.4 7.0 2.4 8.3 6.3 3.7 -0.6 2.5 12.1 3.7
II -0.9 0.8 1.7 0.0 -3.5 0.9 5.3 2.1 1.4 2.0
III 2.7 4.7 1.9 1.5 -2.5 -1.2 -0.5 -1.0 23.3 2.1
IV -2.6 -1.6 1.0 6.9 8.5 9.7 6.9 9.0 -34.1 1.7
ANNUAL 2.1 4.4 2.2 3.6 0.3 1.5 1.4 1.4 12.2 2.8
2007 I 0.4 0.0 -0.3 6.1 2.4 5.7 3.6 5.1 -4.7 3.8
II 3.4 4.3 0.8 2.2 -2.3 -1.2 0.8 -0.7 1.7 -0.4
III 1.8 2.6 0.7 2.8 0.1 1.0 1.3 1.0 -12.5 -0.8
IV 1.9 1.9 0.0 5.9 0.9 3.9 3.9 3.9 -23.7 0.2
ANNUAL 0.9 1.6 0.7 4.1 1.3 3.2 3.0 3.2 -9.0 1.5
2008 I -0.2 -1.4 -1.1 2.9 -1.3 3.2 0.3 2.4 -13.6 0.5
II r8.6 r6.9 r-1.6 3.7 r-1.3 r-4.6 r0.3 r-3.3 r-8.4 r-3.9
----------------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2006 I 3.2 5.9 2.6 4.1 0.4 0.9 1.4 1.0 17.1 3.0
II 1.6 3.9 2.3 3.7 -0.2 2.0 2.7 2.2 9.8 3.2
III 2.9 5.2 2.2 2.6 -0.7 -0.3 -1.3 -0.6 26.8 2.6
IV 0.9 2.7 1.8 4.1 2.1 3.2 2.7 3.1 -2.0 2.4
ANNUAL 2.1 4.4 2.2 3.6 0.3 1.5 1.4 1.4 12.2 2.8
2007 I -0.1 1.0 1.1 3.6 1.1 3.7 3.8 3.7 -5.9 2.4
II 1.0 1.8 0.8 4.1 1.4 3.1 2.7 3.0 -5.8 1.8
III 0.7 1.3 0.6 4.5 2.1 3.7 3.1 3.6 -13.6 1.1
IV 1.9 2.2 0.3 4.3 0.3 2.3 2.4 2.3 -10.3 0.7
ANNUAL 0.9 1.6 0.7 4.1 1.3 3.2 3.0 3.2 -9.0 1.5
2008 I 1.7 1.8 0.1 3.5 -0.7 1.7 1.6 1.7 -12.5 -0.1
II r3.0 r2.5 -0.5 3.8 -0.4 r0.8 r1.4 r1.0 r-14.8 r-1.0
----------------------------------------------------------------------------------------------------------
See footnotes following Table 6. November 6, 2008
r=revised Source: Bureau of Labor Statistics
SOURCES: Output data are from the Bureau of Economic Analysis and the Census
Bureau of the U.S. Department of Commerce; the Bureau of Labor Statistics,
U.S. Department of Labor; and the Federal Reserve Board. Compensation and
hours data are from the Bureau of Labor Statistics and the Bureau of Economic
Analysis.
RELIABILITY: Productivity and cost measures are regularly revised as more
complete information becomes available. The measures are first published
within 40 days of the close of the reference period; revisions appear 30 days
later, and second revisions after an additional 60 days. In the business
sector, the third publication (second revision) of a quarterly index of
output per hour of all persons has differed from the initial value by between
-1.5 and +1.4 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 2008.
Footnotes, Tables 1-6
(1) Wages and salaries of employees plus employers' contributions for social
insurance and private benefit plans. Except for nonfinancial
corporations, where there are no self-employed, data also include an
estimate of wages, salaries, and supplemental payments for the self-
employed.
(2) The change for recent quarters is based on the Consumer Price Index for
all urban consumers (CPI-U). The trend from 1978-2007 is based on the
Consumer Price Index research series (CPI-U-RS).
(3) Unit nonlabor payments include profits, consumption of fixed capital,
taxes on production and imports less subsidies, net interest and
miscellaneous payments, business current transfer payments, rental
income of persons, and the current surplus of government enterprises.
(4) Current dollar output divided by the output index.
(5) Quarterly changes: Percent change compounded at annual rate is
calculated using index numbers to three decimal places. Indexes
published in the news release are rounded to one decimal place for
convenience. Annual changes: Percent change is calculated using annual
average indexes to three decimal places.
(6) Unit nonlabor costs include consumption of fixed capital, taxes on
production and imports less subsidies, net interest and miscellaneous
payments, and business current transfer payments.
(7) Total unit costs are the sum of unit labor and nonlabor costs.
(8) Unit profits include corporate profits before tax with inventory
valuation and capital consumption adjustments.
United States Department of Labor
