For release 10:00 a.m. (EST) Thursday, December 6, 2012 USDL-12-2365
Technical Information: (202) 691-5654 ilchelp@bls.gov www.bls.gov/ilc
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INTERNATIONAL COMPARISONS OF MANUFACTURING PRODUCTIVITY
AND UNIT LABOR COST TRENDS, 2011
Manufacturing productivity increased in 2011 in 15 of 19 countries covered,
the U.S. Bureau of Labor Statistics reported today. Labor productivity (output
per hour) rose by more than 2 percent in the majority of countries (see chart
1). These productivity increases were generally driven by gains in output
coupled with modest changes in hours (see chart 2).
The data presented for the United States differ from those in the BLS
Productivity and Costs news release. (See technical notes.)
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Chart 1. Percent changes in manufacturing output per hour, 2010-2011
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Chart 2. Percent changes in manufacturing output and hours, 2010-2011
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In 2011, only the United Kingdom had larger productivity growth in
manufacturing than in the previous year; in all other countries, productivity
growth slowed down or declined. Only the Czech Republic and Singapore
experienced productivity growth of 8 percent or higher in 2011, while in 2010
the majority of countries experienced growth that exceeded 8 percent (see
chart 3).
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Chart 3. Percent changes in manufacturing output per hour
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Find additional data.
The data tables with annual indexes back to 1950 used to prepare this report
are available at www.bls.gov/ilc/#productivity.
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Unit labor costs are the cost of labor input required to produce one unit of
output and can be denominated either in national currency units or in U.S.
dollars. Expressed in national currency units, manufacturing unit labor costs
increased in 2011 in about half the countries covered; Japan and Australia
recorded the largest increases (see chart 4).
To compare unit labor costs across countries, they are generally converted
into a common currency, in this case U.S. dollars. Changes in a country's unit
labor costs in U.S. dollars are roughly equivalent to the change in unit labor
costs in national currency plus the change in the value of the country's
currency relative to the U.S. dollar (see table 3). The values of the
currencies of all countries compared appreciated relative to the U.S. dollar
in 2011. As a result, unit labor costs in U.S. dollars showed larger increases
than unit labor costs expressed in national currencies.
In 16 of the countries covered, unit labor costs on a U.S. dollar basis
increased more than in the United States, causing the U.S. manufacturing labor
cost competitiveness to increase relative to these countries. The United
States improved its competiveness the most against Australia and Japan due to
the large appreciation of their respective currencies against the U.S. dollar.
However, U.S. labor cost competitiveness deteriorated relative to the Republic
of Korea and the Czech Republic.
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Chart 4. Percent changes in manufacturing unit labor costs, 2010-2011
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Table 1. Output per hour, output, and hours
Manufacturing, 19 countries, 1979-2011
Average annual compound rates of change
Country Indicator 1979-2011 1979-1990 1990-2000 2000-2007 2007-2011 2009-2010 2010-2011
United States Output per hour 4.2 3.0 4.3 6.1 3.8 11.2 2.0
Output 2.7 2.3 4.2 2.9 -0.3 11.2 4.3
Hours -1.4 -0.6 -0.1 -3.1 -3.9 0.0 2.2
Australia Output per hour 1.7 2.1 1.8 2.3 -0.5 0.8 -4.0
Output 1.2 1.6 1.5 1.5 -1.2 0.7 -2.1
Hours -0.5 -0.5 -0.4 -0.8 -0.7 -0.1 2.0
Belgium Output per hour 2.8 4.2 2.8 2.2 -0.2 4.1 0.2
Output 1.2 2.6 1.5 0.7 -2.2 4.8 3.3
Hours -1.5 -1.6 -1.2 -1.5 -2.0 0.7 3.1
Canada Output per hour 2.2 2.1 3.6 1.0 0.8 3.7 1.9
Output 1.4 1.9 4.2 -0.6 -2.8 5.2 2.4
Hours -0.7 -0.2 0.6 -1.6 -3.5 1.5 0.5
Czech Republic Output per hour NA NA NA 9.7 8.3 13.0 10.1
Output NA NA NA 9.4 5.4 13.8 9.8
Hours NA NA NA -0.3 -2.7 0.8 -0.3
Denmark Output per hour 2.4 2.4 2.4 2.9 1.5 8.7 2.3
Output 0.8 1.4 2.0 0.5 -3.1 1.5 1.5
Hours -1.5 -0.9 -0.4 -2.4 -4.5 -6.6 -0.9
Finland Output per hour 4.9 5.0 6.5 7.0 -2.9 11.2 -0.1
Output 3.5 3.4 5.5 6.2 -5.8 9.1 2.0
Hours -1.3 -1.5 -0.9 -0.8 -3.0 -1.9 2.1
France Output per hour 3.2 3.2 3.9 3.3 1.1 6.1 2.2
Output 0.9 0.9 1.9 1.2 -1.8 3.6 1.2
Hours -2.2 -2.3 -1.9 -2.1 -2.9 -2.3 -1.0
Germany Output per hour 2.5 2.1 3.4 4.2 -1.9 7.6 4.5
Output 1.0 1.2 0.6 3.0 -2.4 11.3 8.1
Hours -1.5 -0.9 -2.6 -1.2 -0.5 3.5 3.5
Italy Output per hour 2.1 3.4 2.5 0.9 0.0 9.4 -0.4
Output 1.0 2.6 1.3 0.8 -3.5 7.0 0.6
Hours -1.1 -0.8 -1.2 -0.1 -3.5 -2.1 1.0
Japan Output per hour 3.4 3.8 3.3 3.8 2.2 14.8 -2.8
Output 2.3 4.7 0.8 2.6 -1.4 18.2 -3.6
Hours -1.1 0.9 -2.4 -1.1 -3.5 3.0 -0.8
Korea, Republic of Output per hour NA NA 10.5 8.1 4.1 8.5 6.0
Output 8.5 10.8 8.4 6.8 5.6 14.7 7.2
Hours NA NA -1.9 -1.1 1.5 5.7 1.1
Netherlands Output per hour 3.1 3.2 3.4 3.8 1.1 8.3 4.0
Output 2.1 2.4 2.7 2.0 -0.3 6.9 3.5
Hours -1.0 -0.8 -0.7 -1.7 -1.3 -1.3 -0.5
Norway Output per hour 1.8 2.0 0.9 2.3 2.6 4.5 2.0
Output 0.7 -0.6 1.2 2.3 0.1 2.2 1.9
Hours -1.1 -2.5 0.2 -0.1 -2.4 -2.2 0.0
Singapore Output per hour 5.0 4.0 7.2 2.0 7.7 35.0 8.0
Output 6.8 7.3 7.4 5.5 6.4 29.7 7.6
Hours 1.8 3.2 0.2 3.5 -1.2 -3.9 -0.3
Spain Output per hour 2.8 3.3 2.0 2.9 3.0 6.1 5.1
Output 1.4 2.1 2.8 1.1 -3.2 0.5 2.4
Hours -1.3 -1.2 0.8 -1.8 -6.0 -5.2 -2.5
Sweden Output per hour 4.2 2.1 6.2 6.6 0.9 18.6 3.4
Output 3.3 1.7 5.8 5.2 -1.3 19.8 6.1
Hours -0.8 -0.4 -0.4 -1.3 -2.2 1.0 2.6
Taiwan Output per hour 6.1 6.3 5.0 7.6 5.7 13.9 2.8
Output 6.5 7.5 5.0 7.2 6.2 25.4 4.9
Hours 0.4 1.2 -0.1 -0.4 0.5 10.0 2.0
United Kingdom Output per hour 3.4 3.5 3.0 4.5 2.2 4.4 4.5
Output 0.4 0.9 0.9 0.1 -1.7 3.8 2.1
Hours -2.9 -2.5 -2.1 -4.3 -3.8 -0.6 -2.3
NOTE: Output is real value added in national currency units.
German data for years before 1991 pertain to the former West Germany.
NA=data not available.
Table 2. Unit labor costs, compensation, and output
National currency basis, manufacturing, 19 countries, 1979-2011
Average annual compound rates of change
Country Indicator 1979-2011 1979-1990 1990-2000 2000-2007 2007-2011 2009-2010 2010-2011
United States Unit labor costs 0.2 2.5 -0.4 -2.2 -0.7 -9.1 0.6
Compensation 2.9 4.9 3.8 0.6 -1.0 1.1 4.9
Output 2.7 2.3 4.2 2.9 -0.3 11.2 4.3
Australia Unit labor costs NA NA 1.6 2.8 2.4 0.0 3.1
Compensation NA NA 3.1 4.4 1.2 0.7 1.0
Output 1.2 1.6 1.5 1.5 -1.2 0.7 -2.1
Belgium Unit labor costs 1.1 1.8 0.2 1.0 2.0 -3.7 -1.0
Compensation 2.4 4.4 1.6 1.7 -0.2 0.9 2.3
Output 1.2 2.6 1.5 0.7 -2.2 4.8 3.3
Canada Unit labor costs 2.0 4.6 -0.3 2.7 -0.1 -5.8 0.3
Compensation 3.5 6.5 3.8 2.1 -2.8 -0.9 2.8
Output 1.4 1.9 4.2 -0.6 -2.8 5.2 2.4
Czech Republic Unit labor costs NA NA NA -1.8 -5.4 -8.8 -7.5
Compensation NA NA NA 7.4 -0.3 3.8 1.5
Output NA NA NA 9.4 5.4 13.8 9.8
Denmark Unit labor costs 2.6 5.5 0.5 2.1 1.1 -5.4 0.0
Compensation 3.5 7.0 2.5 2.5 -2.1 -4.0 1.4
Output 0.8 1.4 2.0 0.5 -3.1 1.5 1.5
Finland Unit labor costs 1.2 5.7 -2.2 -3.1 5.2 -9.6 2.7
Compensation 4.7 9.4 3.3 2.9 -0.9 -1.3 4.7
Output 3.5 3.4 5.5 6.2 -5.8 9.1 2.0
France Unit labor costs 2.1 5.8 -0.2 0.1 1.7 -3.9 0.3
Compensation 3.0 6.7 1.7 1.3 -0.1 -0.5 1.4
Output 0.9 0.9 1.9 1.2 -1.8 3.6 1.2
Germany Unit labor costs 1.6 3.3 1.4 -2.2 3.8 -8.6 -2.2
Compensation 2.5 4.6 2.0 0.7 1.4 1.8 5.8
Output 1.0 1.2 0.6 3.0 -2.4 11.3 8.1
Italy Unit labor costs 4.4 8.8 1.9 2.1 3.1 -6.3 2.5
Compensation 5.5 11.6 3.2 3.0 -0.6 0.3 3.2
Output 1.0 2.6 1.3 0.8 -3.5 7.0 0.6
Japan Unit labor costs -1.1 0.7 -0.9 -4.4 -1.0 -13.9 5.1
Compensation 1.1 5.5 -0.1 -1.8 -2.3 1.8 1.3
Output 2.3 4.7 0.8 2.6 -1.4 18.2 -3.6
Korea, Republic of Unit labor costs 3.7 7.9 2.6 1.6 -0.7 -0.6 -6.1
Compensation 12.6 19.5 11.3 8.5 4.9 14.0 0.6
Output 8.5 10.8 8.4 6.8 5.6 14.7 7.2
Netherlands Unit labor costs 0.5 0.8 0.3 -0.1 1.3 -6.9 -1.9
Compensation 2.6 3.2 3.0 1.9 1.0 -0.5 1.6
Output 2.1 2.4 2.7 2.0 -0.3 6.9 3.5
Norway Unit labor costs 4.0 6.7 3.4 2.3 1.3 -1.9 1.8
Compensation 4.7 6.1 4.5 4.7 1.5 0.3 3.8
Output 0.7 -0.6 1.2 2.3 0.1 2.2 1.9
Singapore Unit labor costs 0.2 3.7 -1.5 -1.1 -3.0 -18.3 -2.6
Compensation 7.0 11.3 5.8 4.4 3.2 6.0 4.8
Output 6.8 7.3 7.4 5.5 6.4 29.7 7.6
Spain Unit labor costs 3.9 7.8 2.7 2.4 -0.5 -5.0 -3.6
Compensation 5.4 10.1 5.5 3.5 -3.7 -4.5 -1.2
Output 1.4 2.1 2.8 1.1 -3.2 0.5 2.4
Sweden Unit labor costs 1.1 6.6 -2.1 -2.3 1.0 -17.5 -0.5
Compensation 4.5 8.4 3.6 2.8 -0.3 -1.2 5.5
Output 3.3 1.7 5.8 5.2 -1.3 19.8 6.1
Taiwan Unit labor costs 0.5 5.5 0.2 -3.8 -4.0 -9.4 1.8
Compensation 7.1 13.5 5.2 3.1 1.9 13.6 6.8
Output 6.5 7.5 5.0 7.2 6.2 25.4 4.9
United Kingdom Unit labor costs 2.7 6.1 1.3 0.6 1.1 0.7 -2.3
Compensation 3.1 7.0 2.2 0.6 -0.6 4.5 -0.2
Output 0.4 0.9 0.9 0.1 -1.7 3.8 2.1
NOTE: German data for years before 1991 pertain to the former West Germany.
NA=data not available.
Table 3. Unit labor costs (ULC) in U.S. dollars and in national currency
Manufacturing, 19 countries, 1979-2011
Average annual compound rates of change
Country Indicator 1979-2011 1979-1990 1990-2000 2000-2007 2007-2011 2009-2010 2010-2011
United States ULC in U.S. dollars 0.2 2.5 -0.4 -2.2 -0.7 -9.1 0.6
ULC in nat. cur. 0.2 2.5 -0.4 -2.2 -0.7 -9.1 0.6
Exchange rates -- -- -- -- -- -- --
Australia ULC in U.S. dollars NA NA -1.3 8.4 7.9 16.1 15.8
ULC in nat. cur. NA NA 1.6 2.8 2.4 0.0 3.1
Exchange rates -0.2 -3.2 -2.9 5.4 5.3 16.1 12.3
Belgium ULC in U.S. dollars 1.2 0.6 -2.5 6.9 2.5 -8.4 4.0
ULC in nat. cur. 1.1 1.8 0.2 1.0 2.0 -3.7 -1.0
Exchange rates 0.0 -1.2 -2.6 5.8 0.4 -4.8 5.1
Canada ULC in U.S. dollars 2.6 4.6 -2.7 7.6 2.0 4.4 4.5
ULC in nat. cur. 2.0 4.6 -0.3 2.7 -0.1 -5.8 0.3
Exchange rates 0.5 0.0 -2.4 4.8 2.1 10.8 4.2
Czech Republic ULC in U.S. dollars NA NA NA 7.5 -1.8 -9.0 -0.2
ULC in nat. cur. NA NA NA -1.8 -5.4 -8.8 -7.5
Exchange rates NA NA NA 9.4 3.8 -0.2 7.9
Denmark ULC in U.S. dollars 2.6 4.0 -2.1 8.0 1.5 -10.0 5.1
ULC in nat. cur. 2.6 5.5 0.5 2.1 1.1 -5.4 0.0
Exchange rates -0.1 -1.5 -2.6 5.8 0.4 -4.8 5.1
Finland ULC in U.S. dollars 0.9 5.9 -7.1 2.6 5.6 -13.9 7.9
ULC in nat. cur. 1.2 5.7 -2.2 -3.1 5.2 -9.6 2.7
Exchange rates -0.3 0.2 -5.1 5.8 0.4 -4.8 5.1
France ULC in U.S. dollars 1.8 3.4 -2.9 5.9 2.1 -8.6 5.3
ULC in nat. cur. 2.1 5.8 -0.2 0.1 1.7 -3.9 0.3
Exchange rates -0.3 -2.2 -2.6 5.8 0.4 -4.8 5.1
Germany ULC in U.S. dollars 2.4 4.5 -1.4 3.5 4.2 -13.0 2.8
ULC in nat. cur. 1.6 3.3 1.4 -2.2 3.8 -8.6 -2.2
Exchange rates 0.8 1.1 -2.7 5.8 0.4 -4.8 5.1
Italy ULC in U.S. dollars 2.7 5.2 -3.7 8.1 3.5 -10.8 7.7
ULC in nat. cur. 4.4 8.8 1.9 2.1 3.1 -6.3 2.5
Exchange rates -1.6 -3.3 -5.4 5.8 0.4 -4.8 5.1
Japan ULC in U.S. dollars 2.0 4.6 2.1 -5.6 9.2 -8.1 15.7
ULC in nat. cur. -1.1 0.7 -0.9 -4.4 -1.0 -13.9 5.1
Exchange rates 3.2 3.8 3.0 -1.3 10.3 6.7 10.1
Korea, Republic of ULC in U.S. dollars 1.1 4.1 -2.0 4.5 -5.0 9.6 -2.0
ULC in nat. cur. 3.7 7.9 2.6 1.6 -0.7 -0.6 -6.1
Exchange rates -2.6 -3.4 -4.5 2.8 -4.3 10.3 4.4
Netherlands ULC in U.S. dollars 1.3 1.7 -2.4 5.7 1.7 -11.4 3.1
ULC in nat. cur. 0.5 0.8 0.3 -0.1 1.3 -6.9 -1.9
Exchange rates 0.7 0.9 -2.7 5.8 0.4 -4.8 5.1
Norway ULC in U.S. dollars 3.7 4.7 -0.1 8.5 2.5 2.1 9.9
ULC in nat. cur. 4.0 6.7 3.4 2.3 1.3 -1.9 1.8
Exchange rates -0.3 -1.9 -3.4 6.0 1.1 4.1 7.9
Singapore ULC in U.S. dollars 1.9 5.5 -1.0 0.8 1.5 -12.8 5.7
ULC in nat. cur. 0.2 3.7 -1.5 -1.1 -3.0 -18.3 -2.6
Exchange rates 1.7 1.7 0.5 2.0 4.6 6.7 8.5
Spain ULC in U.S. dollars 2.1 3.8 -3.0 8.3 -0.1 -9.6 1.3
ULC in nat. cur. 3.9 7.8 2.7 2.4 -0.5 -5.0 -3.6
Exchange rates -1.8 -3.7 -5.5 5.8 0.4 -4.8 5.1
Sweden ULC in U.S. dollars -0.2 3.5 -6.3 2.1 2.0 -12.4 10.5
ULC in nat. cur. 1.1 6.6 -2.1 -2.3 1.0 -17.5 -0.5
Exchange rates -1.3 -2.9 -4.3 4.5 1.0 6.2 11.1
Taiwan ULC in U.S. dollars 1.2 8.3 -1.3 -4.5 -1.3 -5.0 9.2
ULC in nat. cur. 0.5 5.5 0.2 -3.8 -4.0 -9.4 1.8
Exchange rates 0.6 2.7 -1.5 -0.7 2.8 4.8 7.2
United Kingdom ULC in U.S. dollars 1.8 4.4 -0.4 4.6 -4.3 -0.7 1.4
ULC in nat. cur. 2.7 6.1 1.3 0.6 1.1 0.7 -2.3
Exchange rates -0.9 -1.6 -1.6 4.1 -5.4 -1.3 3.8
NOTE: Exchange rates are value of foreign currency relative to the U.S. dollar.
German data for years before 1991 pertain to the former West Germany.
NA=data not available.
TECHNICAL NOTES
The comparisons in this release are based on data available to the Bureau of Labor
Statistics as of September 1 from national statistical offices of the countries compared.
Below is a summary of the concepts used in this release. For more information on the
methodology used in this release, see the detailed technical notes at
www.bls.gov/ilc/#productivity.
Labor productivity is defined as real output in national currency per hour worked. Unit
labor costs are defined as the cost of labor input required to produce one unit of output,
and are computed as compensation in nominal terms divided by real output.
BLS constructs the trends in this release from three basic measures: output, total labor
hours, and total compensation. In general, the output measures are real value added and
total labor hours refer to hours worked by all employed persons. Total compensation
includes employer expenditures for direct pay, employer social insurance expenditures, and
labor-related taxes and subsidies.
In general, the measures relate to total manufacturing as defined by the International
Standard Industrial Classification (ISIC). Data for the United States and Canada are in
accordance with the North American Industry Classification System (NAICS), except for
compensation data for the United States before 1987. For most countries, the measures are
prepared according to the United Nations System of National Accounts 1993 (SNA 93) for the
most recent years. For earlier years, data were compiled according to other systems of
national accounts.
The U.S. manufacturing output series used in this release differs from the manufacturing
output series that BLS publishes as part of its major sector productivity and costs
measures for the United States.(1) The International Labor Comparisons program uses a value
added output concept, while the major sector series is on a sectoral output basis, which
is gross output less intra-sector sales and transfers. Even though BLS has determined that
sectoral output is the correct concept for U.S. measures of productivity, there are other
considerations that make value added the better concept for international comparisons of
labor productivity, such as differences among countries in the extent of vertical
integration of industries and the availability of value added data.
The BLS measures are limited to trend comparisons. BLS does not prepare level comparisons
of manufacturing productivity because of data limitations and technical problems in
comparing the levels of manufacturing output among countries.
For more information on the methodology used in this release, see the detailed technical
notes at www.bls.gov/ilc/#productivity.
1. For more information about sectoral output, see www.bls.gov/lpc/.
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United States Department of Labor
