Transmission of material in this release is embargoed until USDL-10-1661
8:30 a.m. (EST) Wednesday, December 1, 2010
Technical information: (202) 691-5606 dprweb@bls.gov www.bls.gov/lpc
Media contact: (202) 691-5902 PressOffice@bls.gov
PRODUCTIVITY AND COSTS
Third Quarter 2010, Revised
Nonfarm business sector labor productivity increased at a 2.3 percent annual
rate during the third quarter of 2010, the U.S. Bureau of Labor Statistics
reported today. Labor productivity is calculated by dividing an index of real
output by an index of the combined hours worked of all persons, including
employees, proprietors, and unpaid family workers. Output increased 3.7
percent and hours worked increased 1.4 percent in the third quarter. (All
quarterly percent changes in this release are seasonally adjusted annual
rates.) Nonfarm business productivity increased 2.5 percent from the third
quarter of 2009 to the third quarter of 2010, as output increased 4.3 percent
and hours worked rose 1.7 percent (tables A and 2).
The productivity measures released today are based on more recent and more
complete data than were available for the preliminary report issued last month
(see Revised measures).
Unit labor costs in nonfarm businesses decreased 0.1 percent in the third
quarter of 2010, because productivity grew 2.3 percent while hourly
compensation increased 2.2 percent. Over the last four quarters, unit labor
costs declined 1.1 percent (tables A and 2). BLS defines unit labor costs as
the ratio of hourly compensation to labor productivity; increases in hourly
compensation tend to increase unit labor costs and increases in output per
hour tend to reduce them.
Business sector productivity increased 2.5 percent in the third quarter of
2010, as output increased 3.7 percent and hours increased 1.2 percent. Over
the last four quarters, business sector productivity increased 2.6 percent.
Manufacturing sector productivity rose 0.6 percent in the third quarter of
2010, as output and hours grew 4.2 percent and 3.6 percent, respectively.
In the durable manufacturing subsector, output per hour declined 0.5
percent as output grew 6.0 percent but hours grew faster, 6.5 percent. In
nondurable goods industries productivity increased 3.2 percent, due both
to an increase in output and a decline in hours. Over the last four
quarters, total manufacturing productivity increased 4.0 percent as output
rose 7.1 percent and hours increased 3.0 percent (tables A and 3).
Manufacturing unit labor costs increased 1.0 percent in the third quarter of
2010, but fell 2.9 percent over the last four quarters.
The data sources and methods used in the preparation of the manufacturing
output series differ from those used in preparing the business and nonfarm
business output series, and these measures are not directly comparable.
See Technical Notes for more information on data sources.
Preliminary third-quarter 2010 data for the nonfinancial corporate sector
also were released today. Output per hour fell 2.4 percent as output
declined 0.2 percent and hours rose 2.3 percent.
Revised measures
Measures for the second and third quarters of 2010 for all sectors reflect
normal updates of source data including output, employment, and hours.
Additionally, manufacturing productivity, output, and unit labor costs series
were revised back to 1987 to reflect revised output indexes constructed by BLS
using data from the U.S. Department of Commerce. Table B presents previous
and revised productivity and related measures for the major sectors: business,
nonfarm business and manufacturing, for the third and second quarters of 2010.
Revised annual indexes for the manufacturing sectors appear in appendix
tables 1-3. Full historical annual and quarterly measures can be found on the
labor productivity and costs home page http://www.bls.gov/lpc/#data.
In the nonfarm business sector, third quarter productivity growth was revised
up to 2.3 percent from a previous estimate of 1.9 percent, because the upward
revision to output was greater than the upward revision to hours. Nonfarm
business productivity in the second quarter was not revised. Unit labor costs
declined by the same amount in the third quarter as previously reported, 0.1
percent. However, second quarter unit labor costs were revised up
substantially due to an upward revision to hourly compensation.
In the manufacturing sector, slight upward revisions to output resulted in
similar upward revisions to productivity in both the third and second
quarters of 2010. Upward revisions to hourly compensation affected unit labor
costs. Third quarter unit labor costs increased 1.0 percent rather than
declining 0.3 percent. Second quarter unit labor costs were revised to -0.7
percent from the preliminary estimate of -6.4 percent reported on November 4.
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The Bureau of Labor Statistics is conducting a customer survey to solicit
suggestions from the public to enhance the quality and relevance of BLS
productivity data and publications. The survey is available at
www.bls.gov/lpc until December 15, 2010.
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__________
The preliminary Productivity and Costs press release for fourth-quarter 2010
is scheduled to be released on Thursday, February 3, 2011 at 8:30 a.m. (EST).
======================================================================================================
Table A. Revised third-quarter 2010 measures: percent change from previous quarter, annual rate
(Q to Q) and from same quarter a year ago (Y to Y)
Sector Nonfarm Durable Nondurable
Business Business Manufacturing Manufacturing Manufacturing
Q to Q Y to Y Q to Q Y to Y Q to Q Y to Y Q to Q Y to Y Q to Q Y to Y
------------------------------------------------------------------------------------------------------
Productivity 2.3 2.5 2.5 2.6 0.6 4.0 -0.5 5.5 3.2 2.7
Output 3.7 4.3 3.7 4.2 4.2 7.1 6.0 9.6 2.2 4.2
Hours 1.4 1.7 1.2 1.6 3.6 3.0 6.5 3.9 -0.9 1.5
Hourly
compensation 2.2 1.4 2.5 1.4 1.6 1.0 0.8 1.5 2.4 -0.3
Real hourly
compensation 0.8 0.2 1.0 0.2 0.1 -0.3 -0.7 0.3 0.9 -1.5
Unit labor
costs -0.1 -1.1 0.0 -1.1 1.0 -2.9 1.3 -3.8 -0.7 -2.9
======================================================================================================
Table B. Revised and previous measures for: third quarter and second quarter 2010
Sector Nonfarm Durable Nondurable
Business Business Manufacturing Manufacturing Manufacturing
Revised Previous Revised Previous Revised Previous Revised Previous Revised Previous
------------------------------------------------------------------------------------------------------
Percent change, annual rate, third quarter 2010
Productivity 2.3 1.9 2.5 2.2 0.6 0.4 -0.5 -0.8 3.2 2.9
Output 3.7 3.0 3.7 3.0 4.2 4.0 6.0 5.6 2.2 2.2
Hours 1.4 1.1 1.2 0.8 3.6 3.6 6.5 6.4 -0.9 -0.7
Hourly
compensation 2.2 1.8 2.5 2.1 1.6 0.1 0.8 -1.0 2.4 1.6
Real hourly
compensation 0.8 0.4 1.0 0.7 0.1 -1.4 -0.7 -2.5 0.9 0.1
Unit labor
costs -0.1 -0.1 0.0 -0.1 1.0 -0.3 1.3 -0.2 -0.7 -1.3
------------------------------------------------------------------------------------------------------
Percent change, annual rate, second quarter 2010
Productivity -1.8 -1.8 -1.8 -1.8 5.6 5.4 11.9 11.6 -1.5 -1.6
Output 1.6 1.6 1.8 1.8 9.8 9.6 15.4 15.1 3.8 3.7
Hours 3.5 3.5 3.7 3.7 4.0 4.0 3.1 3.1 5.3 5.3
Hourly
compensation 2.9 -0.6 2.7 -0.7 4.8 -1.3 8.6 -1.3 -1.7 -1.3
Real hourly
compensation 3.7 0.1 3.5 0.0 5.5 -0.6 9.4 -0.5 -1.0 -0.6
Unit labor
costs 4.9 1.3 4.6 1.1 -0.7 -6.4 -2.9 -11.5 -0.2 0.3
======================================================================================================
Table C. Nonfinancial corporations: preliminary third-quarter and revised second-quarter 2010
productivity and cost measures
Real
Hourly hourly Unit Implicit
Produc- compen- compen- labor Unit price
tivity Output Hours sation sation costs profits deflator
------------------------------------------------------------------------------------------------------
Percent change, annual rate, third quarter 2010
Q to Q -2.4 -0.2 2.3 2.2 0.7 4.7 8.8 4.6
Y to Y 4.5 6.9 2.2 1.2 0.0 -3.2 31.2 -0.1
Percent change, annual rate, second quarter 2010
Revised 0.1 4.4 4.3 2.1 2.8 2.0 19.6 2.6
Previous -1.6 2.7 4.3 -0.7 0.0 0.9 21.7 2.6
======================================================================================================
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 75
percent of the value of GDP in 2009. Nonfarm business, which excludes
farming, accounted for about 74 percent of GDP in 2009.
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 47 percent of the value of GDP in 2009.
Productivity: These productivity measures describe the relationship
between real output and the labor time involved in its production. They
show the changes from period to period in the amount of goods and services
produced per hour. Although these measures relate output to hours at work
of all persons engaged in a sector, they do not measure the specific
contribution of labor, capital, or any other factor of production. Rather,
they reflect the joint effects of many influences, including changes in
technology; capital investment; level of output; utilization of capacity,
energy, and materials; the organization of production; managerial skill;
and the characteristics and effort of the work force.
Labor Compensation: The measure includes accrued wages and salaries,
supplements, employer contributions to employee benefit plans, and taxes.
Estimates of labor compensation by major sector, required for measures of
hourly compensation and unit labor costs, are based primarily on employee
compensation data from the NIPA, prepared by the BEA. The compensation of
employees in general government, nonprofit institutions and private
households are subtracted from compensation of domestic employees to
derive employee compensation for the business sector. The labor
compensation of proprietors cannot be explicitly identified and must be
estimated. This is done by assuming that proprietors have the same hourly
compensation as employees in the same sector. The quarterly labor
productivity and cost measures do not contain estimates of compensation
for unpaid family workers.
Unit Labor Costs: The measures of unit labor costs in this release
describe the relationship between compensation per hour and productivity,
or real output per hour, and can be used as an indicator of inflationary
pressure on producers. Increases in hourly compensation increase unit
labor costs; labor productivity increases offset compensation increases
and lower unit labor costs.
Presentation of the data: The quarterly data in this release are presented
in three ways: as percent changes from the previous quarter presented at a
compound annual rate, as percent changes from the corresponding quarter of
the previous year, and as index number series where 2005=100. Annual data
are presented both as index number series and percent changes from the
previous year.
The index numbers and rates of change reported in the productivity
and costs news release are rounded to one decimal place. All percent
changes in this release and on the BLS web site are calculated using index
numbers to three decimal places. These index numbers are available at the
BLS web site, www.bls.gov/data/home.htm, or by contacting the BLS Division
of Major Sector Productivity. (Telephone 202-691-5606 or email
DPRWEB@BLS.GOV)
Information in this release will be made available to sensory-impaired
individuals upon request. Voice phone: 202-691-5606; Federal Relay Service
number: 1-800-877-8339.
Table 1. Business sector: Productivity, hourly compensation, unit labor costs, and prices,
seasonally adjusted
Real
Output Compen- compen- Unit Implicit
Year per hour Hours sation sation Unit nonlabor price
and of all of all per hour per hour labor payments deflator
quarter persons Output persons (1) (2) costs (3) (4)
---------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2010 III 2.5 r 3.7 r 1.2 r 2.5 r 1.0 r 0.0 r 6.1 2.5
II -1.8 1.8 3.7 2.7 r 3.5 r 4.6 r -0.4 r 2.5
I 3.5 5.0 1.4 -1.1 -2.6 -4.5 9.6 1.2
2009 ANNUAL 3.5 -3.7 -6.9 1.8 2.2 -1.6 3.8 0.5
2009 IV 6.1 6.5 0.3 1.5 -1.2 -4.4 5.2 -0.5
III 7.2 1.6 -5.3 3.8 0.0 -3.2 7.4 0.9
II 8.3 -0.3 -7.9 9.0 7.1 0.6 -2.9 -0.8
I 3.5 -6.2 -9.4 -3.6 -1.5 -6.9 13.6 0.8
2008 ANNUAL 1.1 -0.9 -2.0 3.2 -0.6 2.1 1.4 1.8
2008 IV -0.3 -9.3 -9.0 0.8 11.0 1.1 -7.9 -2.6
III -1.1 -6.1 -5.0 3.6 -2.6 4.8 5.7 5.1
II 1.2 -0.6 -1.8 0.1 -4.8 -1.1 12.3 4.0
I -0.9 -2.0 -1.1 4.5 -0.3 5.4 -5.7 0.9
---------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2010 III 2.6 r 4.2 r 1.6 r 1.4 r 0.2 r -1.1 r 5.1 r 1.4
II 3.7 3.7 0.0 1.7 r -0.1 r -1.9 r 5.4 r 1.0
I 6.3 3.2 -2.9 3.2 0.8 -2.9 4.7 0.2
2009 ANNUAL 3.5 -3.7 -6.9 1.8 2.2 -1.6 3.8 0.5
2009 IV 6.3 0.3 -5.6 2.5 1.0 -3.5 5.6 0.1
III 4.6 -3.7 -7.9 2.4 4.0 -2.2 2.2 -0.4
II 2.5 -5.5 -7.8 2.3 3.3 -0.2 1.8 0.6
I 0.8 -5.6 -6.3 0.2 0.3 -0.6 5.6 1.8
2008 ANNUAL 1.1 -0.9 -2.0 3.2 -0.6 2.1 1.4 1.8
2008 IV -0.3 -4.5 -4.3 2.2 0.6 2.5 0.8 1.8
III 0.5 -1.5 -2.0 3.4 -1.8 2.8 1.9 2.5
II 1.9 0.6 -1.2 3.3 -0.9 1.4 1.8 1.6
I 2.4 1.7 -0.6 3.9 -0.3 1.5 1.3 1.4
---------------------------------------------------------------------------------------------------
Indexes 2005=100
2010 III 111.1 r 104.4 r 93.9 r 116.2 r 104.1 r 104.6 r 117.6 r 109.8 r
II 110.4 103.4 93.7 115.5 r 103.8 r 104.6 r 115.9 r 109.1
I 111.0 103.0 92.8 114.7 102.9 103.4 116.0 108.4
2009 ANNUAL 107.3 100.4 93.6 113.6 103.4 105.9 111.6 108.1
2009 IV 110.0 101.7 92.5 115.1 103.6 104.6 113.4 108.1
III 108.4 100.1 92.4 114.6 103.9 105.8 112.0 108.2
II 106.5 99.8 93.7 113.6 103.9 106.6 110.0 108.0
I 104.4 99.8 95.6 111.2 102.1 106.5 110.8 108.2
2008 ANNUAL 103.6 104.2 100.5 111.5 101.1 107.6 107.5 107.6
2008 IV 103.5 101.4 98.0 112.2 102.5 108.4 107.3 108.0
III 103.6 103.9 100.3 112.0 99.9 108.1 109.6 108.7
II 103.9 105.6 101.6 111.0 100.6 106.8 108.1 107.3
I 103.6 105.7 102.1 111.0 101.8 107.1 105.0 106.3
---------------------------------------------------------------------------------------------------
See footnotes following Table 6. December 1, 2010
r=revised Source: Bureau of Labor Statistics
Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs, and prices,
seasonally adjusted
Real
Output Compen- compen- Unit Implicit
Year per hour Hours sation sation Unit nonlabor price
and of all of all per hour per hour labor payments deflator
quarter persons Output persons (1) (2) costs (3) (4)
---------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2010 III 2.3 r 3.7 r 1.4 r 2.2 r 0.8 r -0.1 5.2 r 2.1 r
II -1.8 1.6 3.5 2.9 r 3.7 r 4.9 r -0.4 r 2.6
I 3.9 5.0 1.1 -0.9 -2.4 -4.6 9.8 1.2
2009 ANNUAL 3.5 -3.8 -7.0 1.9 2.2 -1.6 4.6 0.8
2009 IV 6.0 6.7 0.7 1.5 -1.1 -4.2 3.5 -1.1
III 7.0 1.4 -5.2 3.4 -0.3 -3.3 8.1 1.1
II 8.4 -0.2 -7.9 9.1 7.2 0.6 -2.9 -0.8
I 3.4 -6.4 -9.5 -3.7 -1.6 -6.9 15.4 1.4
2008 ANNUAL 1.0 -1.1 -2.1 3.3 -0.5 2.2 1.2 1.8
2008 IV -0.1 -9.5 -9.5 1.1 11.3 1.2 -6.5 -1.9
III -1.3 -6.2 -4.9 3.7 -2.6 5.0 6.0 5.4
II 1.2 -0.3 -1.5 -0.2 -5.1 -1.4 13.6 4.2
I -1.4 -2.5 -1.2 4.7 0.0 6.2 -7.0 0.8
---------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2010 III 2.5 4.3 r 1.7 r 1.4 r 0.2 r -1.1 r 4.5 r 1.2
II 3.7 3.7 0.0 1.7 r -0.1 r -1.9 r 5.2 r 0.9
I 6.3 3.2 -2.9 3.2 0.8 -2.9 4.5 0.1
2009 ANNUAL 3.5 -3.8 -7.0 1.9 2.2 -1.6 4.6 0.8
2009 IV 6.2 0.3 -5.6 2.5 1.0 -3.5 5.8 0.2
III 4.6 -3.8 -8.0 2.4 4.0 -2.2 3.2 0.0
II 2.5 -5.6 -8.0 2.4 3.4 -0.1 2.7 1.0
I 0.8 -5.7 -6.4 0.2 0.3 -0.6 6.8 2.2
2008 ANNUAL 1.0 -1.1 -2.1 3.3 -0.5 2.2 1.2 1.8
2008 IV -0.4 -4.7 -4.3 2.3 0.7 2.7 1.2 2.1
III 0.5 -1.7 -2.2 3.6 -1.6 3.1 1.6 2.5
II 1.9 0.5 -1.3 3.5 -0.8 1.6 1.4 1.5
I 2.2 1.6 -0.6 3.8 -0.3 1.6 0.7 1.2
---------------------------------------------------------------------------------------------------
Indexes 2005=100
2010 III 111.0 r 104.3 r 93.9 r 116.2 r 104.0 r 104.6 r 117.6 r 109.7 r
II 110.4 103.3 93.6 115.5 r 103.8 r 104.7 r 116.1 r 109.2
I 110.9 102.9 92.8 114.7 102.9 103.4 116.2 108.5
2009 ANNUAL 107.2 100.3 93.5 113.5 103.3 105.9 111.9 108.3
2009 IV 109.9 101.7 92.5 115.0 103.5 104.7 113.5 108.2
III 108.3 100.0 92.4 114.5 103.8 105.8 112.6 108.5
II 106.5 99.7 93.6 113.6 103.9 106.7 110.4 108.2
I 104.3 99.7 95.6 111.1 102.1 106.5 111.2 108.4
2008 ANNUAL 103.6 104.2 100.6 111.5 101.1 107.6 107.0 107.4
2008 IV 103.5 101.4 98.0 112.2 102.5 108.4 107.3 108.0
III 103.5 104.0 100.5 111.9 99.8 108.1 109.1 108.5
II 103.8 105.6 101.7 110.9 100.5 106.8 107.5 107.1
I 103.5 105.7 102.1 111.0 101.8 107.2 104.2 106.0
---------------------------------------------------------------------------------------------------
See footnotes following Table 6. December 1, 2010
r=revised Source: Bureau of Labor Statistics
Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
Real
Output Compen- compen-
Year per hour Hours sation sation Unit
and of all of all per hour per hour labor
quarter persons Output persons (1) (2) costs
---------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2010 III 0.6 r 4.2 r 3.6 1.6 r 0.1 r 1.0 r
II 5.6 r 9.8 r 4.0 4.8 r 5.5 r -0.7 r
I 1.7 7.1 5.3 -6.5 -7.9 -8.1
2009 ANNUAL 2.0 -10.8 r -12.6 5.2 5.6 3.1 r
2009 IV 8.1 7.2 -0.8 4.4 1.6 -3.5
III 16.9 10.9 -5.1 3.3 -0.4 -11.6
II 6.2 -8.5 -13.8 6.5 4.6 0.3
I -1.8 -20.9 -19.4 4.0 6.3 5.9
2008 ANNUAL -0.3 r -4.4 r -4.0 4.0 0.1 4.3 r
2008 IV -2.5 r -18.3 -16.1 7.0 17.9 9.8 r
III -1.4 r -10.3 r -9.0 6.3 -0.1 7.8 r
II -6.5 r -7.7 r -1.4 3.4 -1.7 10.5 r
I -0.7 -2.6 r -2.0 2.2 -2.4 2.9
---------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2010 III 4.0 r 7.1 r 3.0 1.0 r -0.3 r -2.9 r
II 7.9 8.7 0.8 1.4 r -0.4 r -6.1 r
I 8.1 3.9 -3.9 1.8 -0.6 -5.8
2009 ANNUAL 2.0 -10.8 r -12.6 5.2 5.6 3.1 r
2009 IV 7.1 -3.7 -10.1 4.5 3.0 -2.4
III 4.4 -10.0 -13.8 5.2 6.9 0.8
II 0.1 r -14.6 r -14.7 5.9 7.0 5.9
I -3.1 r -14.5 -11.8 5.2 5.3 8.5 r
2008 ANNUAL -0.3 r -4.4 r -4.0 4.0 0.1 4.3 r
2008 IV -2.8 r -9.9 r -7.3 4.7 3.1 7.7 r
III -1.2 r -5.4 r -4.3 5.1 -0.2 6.4 r
II 0.0 r -2.6 r -2.7 3.8 -0.5 3.8 r
I 2.6 r 0.6 r -2.0 2.5 -1.7 -0.2 r
---------------------------------------------------------------------------------------------------
Indexes 2005=100
2010 III 113.1 r 95.2 r 84.2 117.0 r 104.7 r 103.5 r
II 112.9 r 94.2 r 83.5 116.5 r 104.7 r 103.2 r
I 111.4 r 92.1 r 82.7 115.2 103.3 103.4 r
2009 ANNUAL 106.8 r 88.7 r 83.0 115.2 104.9 107.9 r
2009 IV 110.9 r 90.5 r 81.6 117.1 105.4 105.6 r
III 108.8 r 88.9 r 81.8 115.9 105.0 106.5 r
II 104.6 r 86.7 r 82.8 114.9 105.1 109.9 r
I 103.1 r 88.6 r 86.0 113.1 103.9 109.8 r
2008 ANNUAL 104.7 r 99.4 r 95.0 109.5 99.3 104.6 r
2008 IV 103.5 r 93.9 r 90.7 112.0 102.4 108.2 r
III 104.2 r 98.8 r 94.8 110.1 98.2 105.7 r
II 104.6 r 101.5 r 97.1 108.5 98.3 103.8 r
I 106.3 r 103.6 r 97.4 107.6 98.7 101.2 r
---------------------------------------------------------------------------------------------------
See footnotes following Table 6. December 1, 2010
r=revised Source: Bureau of Labor Statistics
Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
Real
Output Compen- compen-
Year per hour Hours sation sation Unit
and of all of all per hour per hour labor
quarter persons Output persons (1) (2) costs
---------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2010 III -0.5 r 6.0 r 6.5 r 0.8 r -0.7 r 1.3 r
II 11.9 r 15.4 r 3.1 8.6 r 9.4 r -2.9 r
I 2.4 9.3 6.8 -7.8 -9.2 -10.0
2009 ANNUAL -0.2 r -15.3 r -15.1 5.8 6.2 6.0 r
2009 IV 8.7 8.0 -0.7 5.3 2.5 -3.1
III 25.8 17.2 -6.8 2.9 -0.8 -18.2
II 5.3 -14.3 -18.6 11.6 9.6 6.0
I -7.5 -28.8 -23.0 2.1 4.4 10.4
2008 ANNUAL -1.6 r -5.7 r -4.2 3.5 -0.3 5.2 r
2008 IV -10.5 r -24.7 r -15.9 6.6 17.4 19.1 r
III 1.3 r -11.5 r -12.7 7.3 0.9 5.9 r
II -10.1 r -10.8 r -0.8 3.8 -1.2 15.5 r
I -3.6 r -3.5 r 0.1 -0.3 -4.8 3.4 r
---------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2010 III 5.5 r 9.6 r 3.9 1.5 r 0.3 r -3.8 r
II 11.9 r 12.4 r 0.5 2.1 r 0.3 r -8.8 r
I 10.2 4.3 -5.3 2.7 0.3 -6.7
2009 ANNUAL -0.2 r -15.3 r -15.1 5.8 6.2 6.0 r
2009 IV 7.4 -6.3 -12.7 5.4 3.9 -1.9
III 2.3 r -14.3 r -16.3 5.7 7.5 3.3 r
II -3.1 r -20.2 r -17.6 6.8 7.9 10.2 r
I -6.8 r -19.4 r -13.5 4.9 5.1 12.6 r
2008 ANNUAL -1.6 r -5.7 r -4.2 3.5 -0.3 5.2 r
2008 IV -5.9 r -13.0 r -7.6 4.3 2.7 10.8 r
III -1.8 r -6.8 r -5.1 4.9 -0.4 6.8 r
II -1.4 r -3.9 r -2.5 3.5 -0.7 5.0 r
I 2.9 r 1.0 r -1.9 1.6 -2.5 -1.2 r
---------------------------------------------------------------------------------------------------
Indexes 2005=100
2010 III 114.7 r 93.9 r 81.9 r 118.9 r 106.4 r 103.6 r
II 114.9 r 92.6 r 80.6 118.6 r 106.6 r 103.3 r
I 111.7 r 89.3 r 80.0 116.2 104.2 104.0 r
2009 ANNUAL 105.9 r 85.3 r 80.5 116.2 105.8 109.7 r
2009 IV 111.1 r 87.4 r 78.7 118.6 106.8 106.8 r
III 108.8 r 85.7 r 78.8 117.1 106.1 107.6 r
II 102.7 r 82.4 r 80.2 116.2 106.3 113.2 r
I 101.4 r 85.6 r 84.4 113.1 103.9 111.5 r
2008 ANNUAL 106.1 r 100.6 r 94.8 109.9 99.6 103.5 r
2008 IV 103.4 r 93.2 r 90.2 112.5 102.8 108.8 r
III 106.3 r 100.0 r 94.1 110.7 98.7 104.2 r
II 105.9 r 103.2 r 97.4 108.8 98.5 102.7 r
I 108.8 r 106.2 r 97.6 107.8 98.8 99.0 r
---------------------------------------------------------------------------------------------------
See footnotes following Table 6. December 1, 2010
r=revised Source: Bureau of Labor Statistics
Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
Real
Output Compen- compen-
Year per hour Hours sation sation Unit
and of all of all per hour per hour labor
quarter persons Output persons (1) (2) costs
---------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2010 III 3.2 r 2.2 -0.9 r 2.4 r 0.9 r -0.7 r
II -1.5 r 3.8 r 5.3 -1.7 r -1.0 r -0.2 r
I 1.6 4.8 3.1 -4.4 -5.8 -5.9
2009 ANNUAL 3.0 r -5.5 r -8.3 4.8 5.2 1.7 r
2009 IV 7.5 6.3 -1.2 2.7 0.0 -4.5
III 6.7 4.3 -2.2 4.5 0.8 -2.0
II 4.1 -1.5 -5.4 -1.1 -2.8 -5.0
I 2.5 -10.7 -12.9 8.4 10.8 5.7
2008 ANNUAL 0.4 r -3.3 r -3.7 4.9 1.0 4.4 r
2008 IV 7.8 r -10.0 r -16.6 7.8 18.7 0.0 r
III -7.1 r -9.2 r -2.3 5.2 -1.1 13.2 r
II -2.4 r -4.6 r -2.3 2.3 -2.7 4.8 r
I 3.0 r -2.7 r -5.5 6.9 2.1 3.8 r
---------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2010 III 2.7 r 4.2 1.5 r -0.3 r -1.5 r -2.9
II 3.5 4.8 1.2 0.2 r -1.5 r -3.2 r
I 5.0 3.4 -1.5 0.4 -2.0 -4.4
2009 ANNUAL 3.0 r -5.5 r -8.3 4.8 5.2 1.7 r
2009 IV 5.2 -0.6 -5.5 3.6 2.0 -1.6
III 5.3 r -4.7 r -9.4 4.8 6.5 -0.4 r
II 1.7 r -7.9 r -9.5 5.0 6.0 3.2 r
I 0.1 r -8.7 r -8.7 5.9 6.1 5.8 r
2008 ANNUAL 0.4 r -3.3 r -3.7 4.9 1.0 4.4 r
2008 IV 0.2 r -6.7 r -6.9 5.5 3.9 5.3 r
III -1.7 r -4.4 r -2.8 5.7 0.4 7.5 r
II 1.2 r -1.8 r -3.0 4.3 0.0 3.0 r
I 1.9 r -0.3 r -2.2 4.1 -0.1 2.2 r
---------------------------------------------------------------------------------------------------
Indexes 2005=100
2010 III 109.2 r 96.4 r 88.3 r 114.2 r 102.2 r 104.6 r
II 108.3 r 95.9 r 88.5 113.5 r 102.0 r 104.8 r
I 108.7 r 95.0 r 87.4 114.0 102.2 104.8 r
2009 ANNUAL 105.7 r 92.4 r 87.4 114.1 103.9 108.0 r
2009 IV 108.3 r 93.9 r 86.7 115.3 103.8 106.4 r
III 106.3 r 92.5 r 86.9 114.5 103.8 107.7 r
II 104.6 r 91.5 r 87.4 113.3 103.6 108.2 r
I 103.6 r 91.8 r 88.7 113.6 104.3 109.6 r
2008 ANNUAL 102.6 r 97.8 r 95.4 108.9 98.7 106.1 r
2008 IV 102.9 r 94.5 r 91.8 111.3 101.7 108.1 r
III 101.0 r 97.0 r 96.0 109.2 97.4 108.1 r
II 102.9 r 99.4 r 96.6 107.9 97.7 104.8 r
I 103.5 r 100.5 r 97.1 107.2 98.4 103.6 r
---------------------------------------------------------------------------------------------------
See footnotes following Table 6. December 1, 2010
r=revised Source: Bureau of Labor Statistics
Table 6. Nonfinancial corporate sector: Productivity, hourly compensation, unit labor costs, unit profits,
and prices, seasonally adjusted
Real Unit
Output Hourly hourly non- Total Unit Implicit
Year per all- compen- compen- Unit labor unit pro- price
and employee Employee sation sation labor costs cost fits deflator
quarter hour Output hours (1) (2) costs (6) (7) (8) (4)
---------------------------------------------------------------------------------------------------------
Percent change from previous quarter at annual rate(5)
2010 III -2.4 -0.2 2.3 2.2 0.7 4.7 2.2 4.0 8.8 4.6
II 0.1 r 4.4 r 4.3 2.1 r 2.8 r 2.0 r -3.4 r 0.4 r 19.6 r 2.6
I 8.6 10.8 2.1 -0.9 -2.3 -8.7 -8.4 -8.6 64.6 -2.1
2009 ANNUAL 1.6 -6.0 -7.5 2.2 2.6 0.6 2.7 1.2 -2.5 0.8
2009 IV 12.5 12.9 0.3 1.4 -1.3 -9.9 -8.1 -9.4 38.2 -5.3
III 5.3 -0.4 -5.4 4.2 0.5 -1.0 -7.8 -3.0 21.2 -0.9
II 3.4 -5.8 -8.9 6.9 5.1 3.4 -2.6 1.6 -21.4 -0.9
I -5.2 -15.6 -11.0 -3.5 -1.4 1.7 9.0 3.8 -4.2 3.0
2008 ANNUAL 2.7 0.9 -1.7 3.5 -0.3 0.8 3.8 1.6 -14.2 -0.3
2008 IV 0.4 -8.1 -8.4 3.0 13.5 2.7 11.1 5.1 -36.5 -0.4
III 5.9 0.3 -5.3 4.5 -1.8 -1.4 2.3 -0.3 86.7 6.5
II 1.7 -0.4 -2.1 1.9 -3.1 0.2 5.0 1.5 -9.2 0.4
I 0.2 -0.2 -0.4 2.8 -1.8 2.7 2.9 2.7 -35.0 -2.2
---------------------------------------------------------------------------------------------------------
Percent change from corresponding quarter of previous year
2010 III 4.5 6.9 2.2 1.2 0.0 -3.2 -4.5 -3.6 31.2 -0.1
II 6.5 r 6.8 r 0.3 1.7 r -0.1 r -4.5 r -6.9 r -5.3 34.8 r -1.5
I 7.4 4.1 -3.1 2.9 0.4 -4.2 -6.7 -5.0 21.3 -2.4
2009 ANNUAL 1.6 -6.0 -7.5 2.2 2.6 0.6 2.7 1.2 -2.5 0.8
2009 IV 3.8 -2.7 -6.3 2.2 0.7 -1.6 -2.6 -1.9 6.0 -1.1
III 0.9 -7.6 -8.4 2.6 4.3 1.7 2.1 1.8 -12.7 0.2
II 1.0 -7.5 -8.4 2.6 3.7 1.6 4.8 2.5 -2.8 2.0
I 0.6 -6.2 -6.8 1.4 1.6 0.8 6.8 2.5 0.8 2.3
2008 ANNUAL 2.7 0.9 -1.7 3.5 -0.3 0.8 3.8 1.6 -14.2 -0.3
2008 IV 2.0 -2.2 -4.1 3.0 1.5 1.0 5.3 2.2 -8.5 1.0
III 4.6 2.5 -2.0 4.0 -1.2 -0.6 1.8 0.1 0.0 0.1
II 2.3 1.5 -0.8 3.5 -0.7 1.2 4.1 2.0 -24.3 -1.4
I 1.9 1.9 0.0 3.5 -0.7 1.6 4.1 2.3 -21.7 -0.8
---------------------------------------------------------------------------------------------------------
Indexes 2005=100
2010 III 111.3 105.3 94.6 114.9 102.8 103.2 110.1 105.1 108.0 105.5
II 112.0 r 105.3 r 94.0 114.2 r 102.7 r 102.0 r 109.5 r 104.1 r 105.8 r 104.3 r
I 112.0 104.2 93.1 113.7 102.0 101.5 110.4 104.0 101.1 103.6
2009 ANNUAL 106.4 99.7 93.7 112.5 102.4 105.8 116.0 108.6 83.4 105.4
2009 IV 109.7 101.6 92.6 113.9 102.5 103.8 112.8 106.3 89.3 104.2
III 106.5 98.5 92.5 113.5 102.9 106.6 115.3 109.0 82.3 105.6
II 105.2 98.6 93.8 112.3 102.8 106.8 117.6 109.8 78.5 105.9
I 104.3 100.1 96.0 110.5 101.5 105.9 118.4 109.4 83.3 106.1
2008 ANNUAL 104.7 106.1 101.3 110.1 99.8 105.1 112.9 107.3 85.5 104.5
2008 IV 105.7 104.4 98.8 111.5 101.9 105.5 115.9 108.4 84.2 105.3
III 105.6 106.7 101.0 110.6 98.7 104.8 112.9 107.0 94.4 105.4
II 104.1 106.6 102.4 109.4 99.1 105.2 112.2 107.1 80.7 103.8
I 103.6 106.7 103.0 108.9 99.9 105.1 110.9 106.7 82.7 103.7
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6. December 1, 2010
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 -1.7 and +1.5 index points approximately 95
percent of the time. This interval is based on the performance of this
measure between the fourth quarter of 1995 and the second quarter of
2010.
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 1978-2009 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.
Appendix table 1.
Manufacturing sector: Productivity, hourly compensation, and unit labor costs.
Real
Output Compen- compen-
per hour Hours sation sation Unit
of all of all per hour per hour labor
Year persons Output persons (1) (2) costs
----------------------------------------------------------------------------------------------------
Indexes 2005=100
2009 106.8 r 88.7 r 83.0 115.2 104.9 107.9 r
2008 104.7 r 99.4 r 95.0 109.5 99.3 104.6 r
2007 105.0 r 104.0 r 99.0 105.3 99.2 100.3 r
2006 100.8 r 101.5 r 100.8 102.0 98.8 101.2 r
2005 100.0 100.0 100.0 100.0 100.0 100.0
2004 95.5 r 96.6 r 101.1 96.8 100.0 101.4 r
2003 93.4 r 94.9 r 101.7 96.0 101.9 102.8 r
2002 87.8 r 93.9 r 106.9 88.9 96.5 101.2 r
2001 81.9 r 94.2 r 115.0 84.3 92.9 102.9 r
2000 80.4 r 98.9 r 123.1 81.2 92.0 101.0 r
1999 76.9 r 95.9 r 124.7 75.4 88.3 97.9 r
1998 73.3 r 92.1 r 125.5 72.2 86.3 98.5 r
1997 69.5 r 87.4 r 125.9 68.0 82.4 97.8 r
1996 65.9 r 81.4 r 123.6 66.4 82.2 100.7 r
1995 63.6 r 78.8 r 123.9 65.2 83.0 102.6 r
1994 60.8 r 74.8 r 123.1 64.2 83.7 105.6 r
1993 58.8 r 70.7 r 120.3 62.7 83.4 106.7 r
1992 57.3 r 68.0 r 118.7 61.3 83.5 107.0 r
1991 55.2 r 65.8 r 119.3 58.5 81.8 106.0 r
1990 53.8 r 67.0 r 124.5 55.2 80.0 102.7 r
1989 52.7 r 67.2 r 127.7 52.7 80.1 100.1 r
1988 52.1 r 66.1 r 126.9 51.2 81.1 98.1 r
1987 51.0 r 62.9 r 123.2 49.4 81.2 96.8 r
----------------------------------------------------------------------------------------------------
See footnotes following Table 6. December 1, 2010
r=revised Source: Bureau of Labor Statistics
Appendix table 2.
Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs.
Real
Output Compen- compen-
per hour Hours sation sation Unit
of all of all per hour per hour labor
Year persons Output persons (1) (2) costs
----------------------------------------------------------------------------------------------------
Indexes 2005=100
2009 105.9 r 85.3 r 80.5 116.2 105.8 109.7 r
2008 106.1 r 100.6 r 94.8 109.9 99.6 103.5 r
2007 107.8 r 106.7 r 99.0 106.1 99.9 98.4 r
2006 102.0 r 103.1 r 101.1 102.2 99.0 100.2 r
2005 100.0 100.0 100.0 100.0 100.0 100.0
2004 95.1 r 95.2 r 100.2 97.0 100.2 102.0 r
2003 93.4 r 93.0 r 99.5 97.3 103.3 104.2 r
2002 87.1 r 91.6 r 105.1 89.1 96.7 102.3 r
2001 80.7 r 92.5 r 114.6 84.9 93.7 105.2 r
2000 79.9 r 98.6 r 123.4 82.6 93.6 103.3 r
1999 75.8 r 94.2 r 124.2 76.5 89.7 100.9 r
1998 70.4 r 87.8 r 124.8 73.3 87.7 104.1 r
1997 65.2 r 81.0 r 124.1 68.9 83.5 105.5 r
1996 61.0 r 73.6 r 120.6 67.7 83.8 110.9 r
1995 58.0 r 69.3 r 119.5 66.9 85.2 115.5 r
1994 54.5 r 64.2 r 117.7 66.5 86.6 121.9 r
1993 52.0 r 59.2 r 114.0 64.8 86.3 124.8 r
1992 50.0 r 56.2 r 112.4 63.6 86.7 127.2 r
1991 47.3 r 54.0 r 114.0 60.3 84.3 127.4 r
1990 46.5 r 56.1 r 120.7 56.7 82.1 121.9 r
1989 45.6 r 56.9 r 124.7 54.3 82.5 119.1 r
1988 45.2 r 56.2 r 124.3 52.7 83.6 116.6 r
1987 44.3 r 53.0 r 119.7 51.3 84.3 115.8 r
----------------------------------------------------------------------------------------------------
See footnotes following Table 6. December 1, 2010
r=revised Source: Bureau of Labor Statistics
Appendix table 3.
Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs.
Real
Output Compen- compen-
per hour Hours sation sation Unit
of all of all per hour per hour labor
Year persons Output persons (1) (2) costs
----------------------------------------------------------------------------------------------------
Indexes 2005=100
2009 105.7 r 92.4 r 87.4 114.1 103.9 108.0 r
2008 102.6 r 97.8 r 95.4 108.9 98.7 106.1 r
2007 102.2 r 101.2 r 99.0 103.8 97.8 101.6 r
2006 99.7 r 99.9 r 100.1 101.5 98.3 101.8 r
2005 100.0 100.0 100.0 100.0 100.0 100.0
2004 95.4 r 98.1 r 102.8 96.5 99.8 101.2 r
2003 92.1 r 97.0 r 105.3 94.0 99.8 102.1 r
2002 87.9 r 96.6 r 110.0 88.8 96.4 101.0 r
2001 82.9 r 96.1 r 115.9 83.0 91.5 100.1 r
2000 80.9 r 99.1 r 122.5 78.5 89.0 97.0 r
1999 78.2 r 98.2 r 125.5 73.2 85.7 93.6 r
1998 77.2 r 97.9 r 126.9 70.2 83.9 90.9 r
1997 75.2 r 97.0 r 128.9 66.5 80.7 88.4 r
1996 72.3 r 93.1 r 128.9 64.2 79.6 88.9 r
1995 70.8 r 93.1 r 131.5 62.7 79.7 88.5 r
1994 69.1 r 91.4 r 132.4 60.9 79.3 88.2 r
1993 67.5 r 88.5 r 131.1 59.6 79.2 88.2 r
1992 66.7 r 86.5 r 129.6 58.0 79.0 86.9 r
1991 65.6 r 84.3 r 128.4 55.9 78.1 85.2 r
1990 64.1 r 84.0 r 131.1 53.0 76.7 82.7 r
1989 62.8 r 83.4 r 132.9 50.0 76.1 79.7 r
1988 62.3 r 81.8 r 131.4 48.5 76.8 77.8 r
1987 61.0 r 78.8 r 129.2 46.3 76.1 75.8 r
----------------------------------------------------------------------------------------------------
See footnotes following Table 6. December 1, 2010
r=revised Source: Bureau of Labor Statistics
United States Department of Labor
