Productivity and Costs by Industry: Selected Service-Providing Industries - 2023

For release 10:00 a.m. (EDT) Thursday, June 27, 2024                                                  USDL-24-1209

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

NOTE: This news release was reissued on November 27, 2024, to provide notice of errors in productivity data series 
for 12 industries. These errors appear in the text of the release and in tables 2 and 3. Estimates in this news 
release will not be corrected. More information about the affected industries is available on the errata notice 
(https://www.bls.gov/errata/). 
Corrected data can be found in the Productivity database (https://data.bls.gov/PDQWeb/ip).


PRODUCTIVITY AND COSTS BY INDUSTRY
SELECTED SERVICE-PROVIDING INDUSTRIES – 2023


Labor productivity rose in 15 of 30 selected service-providing industries in 2023, the U.S. Bureau of Labor 
Statistics reported today. This was the same number of industries as in 2022. Output rose in 16 industries in 
2023 while hours worked increased in 14 industries. Productivity ranged from a 7.2-percent decline in amusement 
parks and arcades to a 22.9-percent growth in natural gas distribution.

The ten largest four-digit NAICS industries by number of workers represent 80.7 percent of all workers in the 
selected service-providing industries covered by this news release. Among these ten industries, productivity growth 
was greatest in commercial banking (+5.8 percent) after rising slightly in the previous year. Couriers and messengers 
posted the most significant productivity decline (-7.1 percent). 

Long term measures of productivity and costs for pet care, except veterinary, services are available in this release 
for the first time. A new article in the BLS online publication "Beyond the Numbers" examines this industry in more 
detail. 

Trends in Labor Productivity in 2023

	• Labor productivity rose in half of the 30 selected service-providing industries in 2023.
	• There were two industries where productivity rose more than 10 percent: natural gas distribution (+22.9 
	  percent) and cable and other subscription programming (+12.4 percent). Output grew 22.2 percent in natural 
	  gas distribution and 8.9 percent in cable and other subscription programming. Hours worked decreased in 
	  both industries.
	• Amusement parks and arcades; travel arrangement and reservation services; and air transportation posted 
	  the largest increases in hours worked, resulting in decreasing productivity. This is a reversal from 2022 
	  and 2021 where these three industries led in productivity gains. 
	• Nine industries recorded a productivity decline that exceeded 3.5 percent. Of these industries, 7 showed a 
	  drop in output and 6 had a decline in hours worked.

Unit labor costs increased in 26 of the 30 selected industries in 2023. In 11 of these industries, productivity 
increased as well. Hourly compensation increased more than productivity in all 11 industries with both rising 
productivity and unit labor costs. Unit labor costs reflect the total labor costs required to produce a unit of 
output. Unit labor costs increase when hourly compensation growth exceeds productivity growth. Changes in labor 
productivity counter the impact of changes in hourly compensation on unit labor costs facing employers. 

Trends in Unit Labor Costs in 2023

	• The largest declines in unit labor costs were in natural gas distribution (-12.5 percent), cable and other 
	  subscription programming (-8.2 percent), and newspaper publishers (-5.0 percent). 
	• Two industries had growth in unit labor costs greater than 15 percent: couriers and messengers (+17.9 
	  percent), and postal service (+17.1 percent). Nine industries had unit labor cost growth of more than 10 
	  percent. All nine industries had decreases in productivity and increases in hourly compensation.
	• Hourly compensation rose in all 30 of the industries measured. 

2019 to 2023 Trends

Labor productivity increased in 23 out of 30 selected service-providing industries from 2019 to 2023. (See table 3.) 
Note that the annual percent changes for periods of more than 1 year are annualized average rates of change over the 
entire period, or a compound annual growth rate. The two industries with the highest productivity gains during this 
period were cable and other subscription programming (+9.2 percent per year) and gambling industries (+9.1 percent). 
The largest annual decline in productivity from 2019 to 2023 occurred in warehousing and storage (-8.7 percent).

Output increased in 22 out of 30 selected service-providing industries from 2019 to 2023. The two industries with the 
highest increases during this period were software publishers (+10.3 percent per year) and gambling industries (+8.7 
percent). The steepest annual declines in output during this period were postal service (-3.8 percent) and newspaper 
publishers (-3.1 percent).

Hours worked decreased in 17 of the 30 selected service-providing industries from 2019 to 2023. The two industries 
with the largest decreases in hours worked over the 4 years were newspaper publishers (-9.1 percent per year) and 
periodical publishers (-6.9 percent). The industries with the largest increases in hours worked during this period 
were warehousing and storage (+9.6 percent) and software publishers (+9.4 percent).  

Trends in Long-Term Productivity Through 2022

Long-term productivity rose in 47 out of 59 service-providing industries. (See table 2.) For most industries studied, 
this period extends from 1987 to 2022, the latest year for which data are available for all 59 selected 
service-providing industries published on the BLS website. None of the rates in this section incorporate data for 
2023. Measures for some industries begin in years later than 1987. 

	• Median long-term productivity growth for all 59 industries was approximately 1.5 percent per year, ranging 
	  from a decline of 2.6 percent per year in golf courses and country clubs to an increase of 11.3 percent in 
	  wireless telecommunications carriers.
	• Output increased over the long term in 45 industries while hours worked increased in 38 industries.
	• Productivity increased in 39 of the 59 industries over the business cycle preceding the pandemic: 2007 to 
	  2019. During this period, 39 industries had increases in output and 32 saw growth in hours worked. 
	• Pet care, except veterinary, services is published for the first time in this release. Long-term annual 
	  changes for this industry are for 2004-2022. Labor productivity has decreased 2.1 percent per year, with 
	  output increasing 5.9 percent and hours worked rising 8.2 percent per year.

Additional Information

The productivity and costs measures in this release incorporate data from the Census Bureau's Service Annual Survey 
(January 2024). Accordingly, the labor productivity and output series for all industries have been revised for 2022 
and earlier years.

Measures of hours worked for all industries reflect a change in methods and are revised historically. Estimates of 
hours worked by self-employed workers and unpaid family workers reflect a method change that makes industry-level 
estimates consistent with the newly composited quarterly major sector estimates that remove variability during 
seasonal adjustment and reduce volatility in these workers. A more detailed discussion of the changes is available 
in the Monthly Labor Review at www.bls.gov/opub/mlr/2023/article/an-improved-estimate-of-self-employment-hours.htm. 

More information about the North American Industry Classification System (NAICS) can be found at 
www.census.gov/naics/.

The following NAICS codes are included in Tables 1 and 3 but not counted in the short-term count of 30 selected 
industries because they are duplicate codes or aggregates for which full underlying coverage is published:  22, 221, 
484, 4841, 4911, 4931, 511, 5111, 515, 5173, 54121, 722, and 72251.

The following NAICS codes are included in Table 2 but not counted in the long-term count of 59 selected industries 
because they are duplicate codes or aggregates for which full underlying coverage is published:  22, 221, 484, 4841, 
4842, 491, 493, 4931, 511, 5111, 515, 5151, 5173, 5412, 54121, 5615, 6215, 6221,3, 7131, 72, 721, 7211, 722, 72251, 
8121, and 8123.

Access the productivity data dashboard at www.bls.gov/productivity/tables/labor-productivity-detailed-industries.xlsx 
for
	• Additional industries and sectors
	• Detailed data series: indexes of productivity and related measures; rates of change; and levels of industry 
	  employment, hours worked, nominal value of production, and labor compensation 
	• Additional years and long-term data

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