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Economic News Release
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Productivity and Costs News Release



Transmission of material in this release is embargoed until                                 USDL 21-2098
8:30 a.m. (ET) Tuesday, December 7, 2021

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

                                        PRODUCTIVITY AND COSTS 
                                      Third Quarter 2021, Revised

Nonfarm business sector labor productivity decreased 5.2 percent in the third quarter of 2021, the 
U.S. Bureau of Labor Statistics reported today, as output increased 1.8 percent and hours worked 
increased 7.4 percent. This is the largest decline in quarterly productivity since the second quarter of 
1960, when the measure decreased 6.1 percent. (All quarterly percent changes in this release are 
seasonally adjusted annual rates.) From the third quarter of 2020 to the third quarter of 2021, nonfarm 
business sector labor productivity decreased 0.6 percent. This four-quarter rate is the largest decline 
since the fourth quarter of 1993, when the measure also declined 0.6 percent. (See table A1.)

Unit labor costs in the nonfarm business sector increased at an annual rate of 9.6 percent in the third 
quarter of 2021, reflecting a 3.9-percent increase in hourly compensation and a 5.2-percent decrease in 
productivity. Unit labor costs increased 6.3 percent over the last four quarters. (See table A1.) BLS 
calculates unit labor costs as the ratio of hourly compensation to labor productivity. Increases in hourly 
compensation tend to increase unit labor costs and increases in productivity tend to reduce them.

Labor productivity, or output per hour, is calculated by dividing an index of real output by an index of 
hours worked by all persons, including employees, proprietors, and unpaid family workers. In the third 
quarter of 2021, both output and hours worked increased for the fifth consecutive quarter following 
historic declines in those measures in the second quarter of 2020. The output index is now 1.8 percent 
above the level seen in the fourth quarter of 2019, the last quarter not affected by the COVID-19 
pandemic, while the hours worked index remains 1.0 percent below its fourth quarter 2019 level. (See 
tables A1 and 2.)

The nonfarm business labor productivity index is 2.8 percent higher in third-quarter 2021 than it was in 
fourth-quarter 2019, corresponding to an annualized growth rate of 1.6 percent during the pandemic 
period of fourth quarter 2019 through third quarter 2021. This rate is slightly higher than the 1.4-percent 
average annual growth rate during the previous business cycle--from 2007 to 2019--but below the long-
term average rate since 1947 of 2.1 percent. 

Manufacturing sector labor productivity decreased 1.8 percent in the third quarter of 2021, as output 
increased 5.1 percent and hours worked increased 7.0 percent. In the durable manufacturing sector, 
productivity increased 0.7 percent, with a 9.7-percent increase in output and an 8.9-percent increase in 
hours worked. Nondurable manufacturing sector productivity decreased 3.6 percent, as 0.3-percent 
growth in output was outpaced by 4.0-percent growth in hours worked. Total manufacturing sector 
productivity increased 2.2 percent from the same quarter a year ago. (See tables A1, 3, 4, and 5.)

Manufacturing sector output is now 1.0 percent above its level in the fourth quarter of 2019, the last 
quarter not affected by the COVID-19 pandemic. Hours worked in manufacturing remain 3.2 percent 
below the fourth-quarter 2019 level. The manufacturing labor productivity index was 4.4 percent higher 
in third-quarter 2021 than in fourth-quarter 2019, corresponding to an annualized labor productivity 
growth rate of 2.5 percent during that period. This rate is much higher than the 0.2-percent average 
annual growth rate during the previous business cycle--from 2007 to 2019--and is just above the long-
term rate of 2.3 percent per year from 1987 to 2020. (See tables A1 and 3.)

Unit labor costs in the total manufacturing sector increased 4.6 percent in the third quarter of 2021, 
reflecting a 2.7-percent increase in hourly compensation and a 1.8-percent decrease in productivity. 
Manufacturing unit labor costs increased 3.7 percent from the same quarter a year ago. (See tables A1 
and 3.)

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

Preliminary third-quarter 2021 measures were announced today for the nonfinancial corporate sector. 
(See table A2.) Productivity increased 0.7 percent in the third quarter of 2021 as output and hours 
worked increased 6.8 percent and 6.1 percent, respectively. As in the larger nonfarm business sector, 
both output and hours worked in the nonfinancial corporate sector have increased in each of the last five 
quarters. Output is now 5.2 percent above the fourth quarter 2019 level, while hours worked remain 1.2 
percent lower than in fourth-quarter 2019, the last quarter not affected by the COVID-19 pandemic. 
Productivity increased 5.5 percent in the nonfinancial corporate sector over the last four quarters. Unit 
profits of nonfinancial corporations increased at an 8.3 percent annual rate in the third quarter of 2021 
and increased 11.3 percent over the last four quarters. (See table 6.)

Revised measures        

Measures released today are based on more recent source data than were available for the preliminary 
report. Regular updates of source data from the BLS, the Bureau of Economic Analysis (BEA), and the 
Board of Governors of the Federal Reserve System are reflected in data for the second and third quarters 
of 2021. Revisions to source data on compensation from BEA, reflecting their incorporation of data 
from the BLS Quarterly Census of Employment and Wages, resulted in revisions to measures of hourly 
compensation and unit labor costs in the second quarter of 2021 in all sectors. Measures of output for the 
manufacturing sectors incorporate revised annual benchmark data from 1987 to 2019 released 
November 18 by BLS. This revision primarily affected measures in 2018 and 2019; revisions to percent 
changes prior to 2018 did not exceed 0.1 percentage point.

Table B1 presents revised and previously published productivity and related measures for the nonfarm 
business, business, and manufacturing sectors for the third quarter of 2021. 

In the third quarter of 2021, nonfarm business labor productivity decreased 5.2 percent rather than the 
preliminary estimate of a 5.0-percent decrease, reflecting a 0.1-percentage point upward revision to 
output and a 0.4-percentage point upward revision to hours worked. Unit labor costs were revised up 1.3 
percentage points due primarily to a 1.0-percentage point upward revision to hourly compensation. 

In the manufacturing sector, productivity decreased 1.8 percent rather than 1.0 percent as previously 
reported, reflecting a 0.6-percentage point downward revision to output and a 0.3-percentage point 
upward revision to hours worked. Durable manufacturing productivity increased 0.7 percent rather than 
increasing 1.4 percent as previously reported, reflecting a 0.2-percentage point downward revision to 
output and a 0.5-percentage point upward revision to hours worked. Nondurable manufacturing 
productivity was revised down to a decrease of 3.6 percent rather than a decrease of 2.6 percent as 
previously reported, due to a 1.0-percentage point downward revision to output; hours worked were 
unrevised. Total manufacturing unit labor costs were revised up 1.7 percentage points to an increase of 
4.6 percent, the combined effect of a 0.8-percentage point upward revision to hourly compensation and a 
0.8-percentage point downward revision to productivity. 

Table B2 shows revised and previously published productivity and related measures for the nonfarm 
business, business, manufacturing, and nonfinancial corporate sectors for the second quarter of 2021.

In the second quarter of 2021, labor productivity, output, and hours worked were unrevised for the 
nonfarm business sector. Unit labor costs increased 5.9 percent, rather than increasing 1.1 percent as 
previously reported, due to a 4.9-percentage point upward revision to hourly compensation. 

In the manufacturing sector, productivity was revised down 0.1 percentage point to an increase of 8.4 
percent. Unit labor costs were revised up to an increase of 1.7 percent rather than the previously reported 
decrease of 3.5 percent. This large revision is mainly due to a 5.5-percentage point upward revision to 
hourly compensation.

In the nonfinancial corporate sector, productivity increased 0.8 percent rather than decreasing 1.8 
percent as previously reported, due solely to a 2.8-percentage point upward revision to output; hours 
worked were unrevised. Unit labor costs were revised up 1.9 percentage points to an increase of 7.6 
percent, reflecting a 4.7-percentage point upward revision to hourly compensation that was partially 
offset by a 2.6-percentage point upward revision to labor productivity.

Complete annual and quarterly data series can be found on the Productivity and Costs home page: 
www.bls.gov/lpc/#data.
______________
The preliminary Productivity and Costs news release for fourth-quarter and annual averages 2021 
is scheduled to be released on Thursday, February 3, 2022 at 8:30 a.m. (ET). 

-------------------------------------------------------------------------------------------------------------------------
| Calendar year 2022 release dates for Productivity and Costs news releases are now available at                        |
| www.bls.gov/schedule/news_release/prod2.htm.                                                                          |
-------------------------------------------------------------------------------------------------------------------------

        
=========================================================================================================================
Table A1. Labor productivity growth and related measures – revised third-quarter 2021
(percent change  from previous quarter at annual rate and from same quarter a year ago)


                                                Labor                   Hours    Hourly         Real hourly    Unit labor
Sector                  Percent change from:    productivity   Output   worked   compensation   compensation   costs
-------------------------------------------------------------------------------------------------------------------------
Nonfarm business         Previous quarter           -5.2         1.8      7.4        3.9           -2.5         9.6
                         A year ago                 -0.6         6.2      6.8        5.8            0.4         6.3

Business                 Previous quarter           -5.0         1.5      6.9        4.4           -2.1         9.9
                         A year ago                 -0.7         6.0      6.7        5.8            0.5         6.5

Manufacturing            Previous quarter           -1.8         5.1      7.0        2.7           -3.7         4.6
                         A year ago                  2.2         6.1      3.9        5.9            0.6         3.7

  Durable                Previous quarter            0.7         9.7      8.9        1.7           -4.6         1.0
  manufacturing          A year ago                  3.0         6.7      3.6        7.1            1.7         4.0

  Nondurable             Previous quarter           -3.6         0.3      4.0        4.1           -2.3         8.0
  manufacturing          A year ago                  1.0         5.5      4.4        3.8           -1.4         2.7
=========================================================================================================================


=========================================================================================================================
Table A2. Labor productivity growth and related measures – preliminary third-quarter 2021
(percent change from previous quarter at annual rate and from same quarter a year ago)


                                                Labor                   Hours    Hourly         Real hourly    Unit labor
Sector               Percent change from:       productivity   Output   worked   compensation   compensation   costs
-------------------------------------------------------------------------------------------------------------------------
Nonfinancial            Previous quarter             0.7         6.8      6.1        5.4           -1.2         4.7
corporate               A year ago                   5.5        12.1      6.2        5.3            0.1        -0.2
=========================================================================================================================


=========================================================================================================================
Table B1. Labor productivity growth and related measures – revised and previously published third-quarter 2021
(percent change from previous quarter at annual rate) 


                                                Labor                   Hours    Hourly         Real hourly    Unit labor
Sector                                          productivity   Output   worked   compensation   compensation   costs
-------------------------------------------------------------------------------------------------------------------------
Nonfarm business                  Revised           -5.2         1.8      7.4        3.9           -2.5         9.6
                          Previously published      -5.0         1.7      7.0        2.9           -3.5         8.3

Business                          Revised           -5.0         1.5      6.9        4.4           -2.1         9.9
                          Previously published      -4.8         1.4      6.5        3.3           -3.1         8.5

Manufacturing                     Revised           -1.8         5.1      7.0        2.7           -3.7         4.6
                          Previously published      -1.0         5.7      6.7        1.9           -4.5         2.9

  Durable                         Revised            0.7         9.7      8.9        1.7           -4.6         1.0
  manufacturing           Previously published       1.4         9.9      8.4        0.8           -5.5        -0.6

  Nondurable                      Revised           -3.6         0.3      4.0        4.1           -2.3         8.0
  manufacturing           Previously published      -2.6         1.3      4.0        3.5           -2.9         6.2
=========================================================================================================================


=========================================================================================================================
Table B2. Labor productivity growth and related measures – revised and previously published second-quarter 2021
(percent change from previous quarter at annual rate) 


                                                Labor                   Hours    Hourly         Real hourly    Unit labor
Sector                                          productivity   Output   worked   compensation   compensation   costs
-------------------------------------------------------------------------------------------------------------------------
Nonfarm business                  Revised            2.4         8.5      5.9        8.4            0.0         5.9
                          Previously published       2.4         8.5      5.9        3.5           -4.6         1.1

Business                          Revised            2.6         8.2      5.4        8.9            0.4         6.1
                          Previously published       2.6         8.2      5.4        3.9           -4.2         1.3

Manufacturing                     Revised            8.4         5.8     -2.5       10.2            1.7         1.7
                          Previously published       8.5         5.8     -2.5        4.7           -3.5        -3.5

  Durable                         Revised            5.6        -0.1     -5.4       13.1            4.3         7.1
  manufacturing           Previously published       5.7        -0.1     -5.4        5.2           -3.0        -0.4

  Nondurable                      Revised            9.8        12.7      2.6        5.8           -2.4        -3.7
  manufacturing           Previously published       9.8        12.6      2.6        4.5           -3.6        -4.8

Nonfinancial                      Revised            0.8         5.7      4.9        8.5            0.0         7.6
corporate                 Previously published      -1.8         2.9      4.9        3.8           -4.3         5.7
=========================================================================================================================

					
					
					TECHNICAL NOTES


Labor Hours

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

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

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

Output

Business sector output is a chain-type, current-weighted index constructed after excluding from 
gross domestic product (GDP) the following outputs: general government, nonprofit institutions, 
and private households (including owner-occupied housing). Corresponding exclusions also are 
made in labor hours worked. Business output accounted for about 75 percent of the value of 
GDP in 2020. Nonfarm business, which excludes farming, accounted for about 74 percent of 
GDP in 2020.

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

Nonfinancial corporate output is a chain-type, current-weighted index calculated on the basis of 
the costs incurred and the incomes earned from production.  The output measure excludes the 
following outputs from GDP: general government; nonprofit institutions; private households; 
unincorporated business; and those corporations classified as offices of bank holding companies, 
offices of other holding companies, or offices in the finance and insurance sector. Nonfinancial 
corporations accounted for about 49 percent of the value of GDP in 2020. 

Labor Productivity

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

Labor Compensation

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

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

Presentation of the data

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

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

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



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

2021 III      -5.0 r       1.5 r      6.9 r      4.4 r     -2.1 r      9.9 r      0.8 r      6.1  
     II        2.6         8.2        5.4        8.9 r      0.4 r      6.1 r      9.0 r      7.3  
     I         4.2         8.2        3.8        1.5       -2.1       -2.6       17.3        5.1  

2020 ANNUAL    2.4        -4.2       -6.5        6.8        5.5        4.3       -4.8        0.4  

2020 IV       -4.2         6.1       10.8        8.6        6.0       13.4      -13.3        1.6  
     III       5.9        44.7       36.7       -4.7       -9.0      -10.0       31.7        5.1  
     II       10.2       -36.8      -42.7       21.9       25.8       10.6      -23.2       -4.6  
     I        -1.1        -6.8       -5.8        9.2        8.1       10.5      -12.6        0.0  

2019 ANNUAL    1.9         2.6        0.7        3.8        2.0        1.8        1.1        1.5  

2019 IV        0.5         1.8        1.3        3.9        1.3        3.4       -1.2        1.4  
     III       0.6         3.1        2.5        0.1       -1.2       -0.4        2.5        0.8  
     II        4.3         3.5       -0.7        1.4       -2.0       -2.7       10.3        2.7  
     I         3.2         3.1       -0.2        9.4        8.6        5.9       -5.9        0.7  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2021 III      -0.7 r       6.0 r      6.7 r      5.8 r      0.5 r      6.5 r      2.8 r      5.0  
     II        2.0        15.8       13.5        3.4 r     -1.3 r      1.3 r      9.9 r      4.7  
     I         3.9         1.2       -2.6        6.4        4.4        2.4        0.7        1.7  

2020 ANNUAL    2.4        -4.2       -6.5        6.8        5.5        4.3       -4.8        0.4  

2020 IV        2.5        -2.5       -4.9        8.3        7.0        5.7       -6.4        0.5  
     III       3.8        -3.5       -7.0        7.2        5.8        3.3       -3.3        0.4  
     II        2.5       -11.3      -13.5        8.5        8.0        5.9       -9.2       -0.6  
     I         1.1         0.3       -0.7        3.6        1.5        2.5       -0.6        1.2  

2019 ANNUAL    1.9         2.6        0.7        3.8        2.0        1.8        1.1        1.5  

2019 IV        2.1         2.9        0.7        3.7        1.6        1.5        1.3        1.4  
     III       2.0         2.7        0.6        3.1        1.3        1.0        2.0        1.5  
     II        2.0         2.4        0.4        4.2        2.4        2.2        0.5        1.5  
     I         1.5         2.5        1.0        4.2        2.6        2.7        0.4        1.7  
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2021 III     111.6 r     124.5 r    111.6 r    136.5 r    114.5 r    122.3 r    108.7 r    116.3 r
     II      113.0       124.1      109.8      135.0 r    115.1 r    119.5 r    108.5 r    114.6  
     I       112.3       121.6      108.3      132.2      115.0      117.7      106.2      112.6  

2020 ANNUAL  110.5       116.0      105.0      128.8      114.0      116.5      103.0      110.6  

2020 IV      111.1       119.3      107.3      131.7      115.6      118.5      102.0      111.3  
     III     112.3       117.5      104.6      129.0      113.9      114.8      105.7      110.8  
     II      110.7       107.2       96.8      130.6      116.7      117.9       98.7      109.5  
     I       108.1       120.2      111.2      124.2      110.1      115.0      105.4      110.8  

2019 ANNUAL  107.9       121.2      112.3      120.5      108.0      111.7      108.3      110.2  

2019 IV      108.4       122.3      112.9      121.5      108.0      112.1      109.0      110.8  
     III     108.2       121.8      112.5      120.4      107.7      111.2      109.3      110.4  
     II      108.1       120.8      111.8      120.3      108.0      111.3      108.6      110.2  
     I       106.9       119.8      112.0      119.9      108.5      112.1      106.0      109.4  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   December 7, 2021
r=revised                                                        Source: Bureau of Labor Statistics



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

2021 III      -5.2 r       1.8 r      7.4 r      3.9 r     -2.5 r      9.6 r      0.6 r      5.8 r
     II        2.4         8.5        5.9        8.4 r      0.0 r      5.9 r      6.5 r      6.1  
     I         4.3         8.4        4.0        1.4       -2.2       -2.8       16.6        4.6  

2020 ANNUAL    2.4        -4.4       -6.6        7.0        5.6        4.5       -4.9        0.4  

2020 IV       -3.4         6.2        9.9        9.4        6.8       13.3      -14.8        0.9  
     III       4.6        44.6       38.2       -5.7      -10.0       -9.9       30.5        4.7  
     II       11.2       -36.9      -43.2       22.7       26.6       10.3      -21.7       -3.9  
     I        -1.8        -7.4       -5.7        9.3        8.2       11.3      -13.2        0.2  

2019 ANNUAL    2.0         2.7        0.7        3.8        2.0        1.8        1.2        1.5  

2019 IV        0.6         1.8        1.2        4.1        1.5        3.5       -1.5        1.3  
     III       0.8         3.2        2.4        0.2       -1.1       -0.5        2.4        0.7  
     II        4.3         3.6       -0.7        1.4       -2.0       -2.8       10.6        2.7  
     I         3.4         3.4        0.0        9.2        8.4        5.6       -5.5        0.7  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2021 III      -0.6 r       6.2 r      6.8 r      5.8 r      0.4 r      6.3 r      1.6 r      4.4  
     II        1.9        15.9       13.7        3.2 r     -1.5 r      1.3 r      8.4 r      4.1  
     I         4.1         1.3       -2.7        6.4        4.5        2.3        0.4        1.5  

2020 ANNUAL    2.4        -4.4       -6.6        7.0        5.6        4.5       -4.9        0.4  

2020 IV        2.5        -2.7       -5.0        8.5        7.2        5.8       -6.8        0.4  
     III       3.6        -3.7       -7.0        7.1        5.8        3.4       -3.3        0.5  
     II        2.6       -11.5      -13.7        8.8        8.3        6.0       -9.0       -0.4  
     I         1.0         0.2       -0.8        3.7        1.6        2.7       -0.8        1.2  

2019 ANNUAL    2.0         2.7        0.7        3.8        2.0        1.8        1.2        1.5  

2019 IV        2.3         3.0        0.7        3.7        1.6        1.4        1.4        1.4  
     III       2.1         2.8        0.6        3.1        1.3        0.9        2.1        1.4  
     II        2.2         2.6        0.3        4.3        2.4        2.1        0.8        1.5  
     I         1.6         2.6        1.1        4.3        2.6        2.7        0.6        1.8  
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2021 III     111.3 r     124.4 r    111.8 r    136.6 r    114.6 r    122.7 r    108.3 r    116.4 r
     II      112.8       123.9      109.9      135.2 r    115.3 r    119.9 r    108.1 r    114.8  
     I       112.1       121.4      108.3      132.5      115.3      118.2      106.5      113.1  

2020 ANNUAL  110.2       115.7      105.0      129.1      114.3      117.1      103.8      111.3  

2020 IV      110.9       118.9      107.2      132.1      116.0      119.1      102.5      111.8  
     III     111.9       117.2      104.7      129.1      114.1      115.4      106.6      111.6  
     II      110.6       106.9       96.6      131.0      117.1      118.4       99.8      110.3  
     I       107.7       119.9      111.3      124.5      110.4      115.6      106.1      111.4  

2019 ANNUAL  107.7       121.0      112.4      120.7      108.2      112.1      109.2      110.8  

2019 IV      108.2       122.2      112.9      121.8      108.2      112.5      109.9      111.4  
     III     108.1       121.6      112.6      120.5      107.8      111.6      110.3      111.0  
     II      107.8       120.7      111.9      120.5      108.1      111.7      109.7      110.8  
     I       106.7       119.6      112.1      120.1      108.7      112.5      106.9      110.1  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   December 7, 2021
r=revised                                                        Source: Bureau of Labor Statistics



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

2021 III          -1.8 r          5.1 r          7.0 r          2.7 r         -3.7 r          4.6 r
     II            8.4 r          5.8           -2.5           10.2 r          1.7 r          1.7 r
     I            -0.8            2.9            3.8            0.6           -3.1            1.4  

2020 ANNUAL        0.1 r         -6.5 r         -6.6            6.8            5.4            6.6 r

2020 IV            3.2 r         11.0            7.6           10.5            7.9            7.2  
     III          19.4           56.2           30.8          -12.0          -16.0          -26.3  
     II          -10.3          -44.5          -38.1           27.2           31.3           41.9  
     I             1.7 r         -5.5           -7.2            7.8            6.7            6.0  

2019 ANNUAL       -1.4           -1.7           -0.2            2.8            1.0            4.3  

2019 IV           -2.2 r         -2.0 r          0.1            6.7            4.0            9.1 r
     III          -1.6 r         -0.5 r          1.1           -1.1           -2.4            0.4 r
     II           -2.0           -3.4 r         -1.4            1.7           -1.7            3.8  
     I            -0.9 r         -4.0 r         -3.1            6.2            5.4            7.1 r
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2021 III           2.2 r          6.1 r          3.9 r          5.9 r          0.6 r          3.7 r
     II            7.3           17.2            9.2            1.9 r         -2.8 r         -5.0 r
     I             2.3           -0.2           -2.5            5.6            3.7            3.2  

2020 ANNUAL        0.1 r         -6.5 r         -6.6            6.8            5.4            6.6 r

2020 IV            3.0           -2.4           -5.2            7.5            6.2            4.4  
     III           1.6 r         -5.4 r         -6.8            6.5            5.2            4.9 r
     II           -3.2 r        -15.4 r        -12.7            9.7            9.2           13.3 r
     I            -1.0 r         -2.9 r         -1.9            3.7            1.6            4.8 r

2019 ANNUAL       -1.4           -1.7           -0.2            2.8            1.0            4.3  

2019 IV           -1.7 r         -2.5 r         -0.8            3.3            1.3            5.1 r
     III          -1.8           -2.5           -0.7            2.3            0.5            4.2  
     II           -1.6 r         -1.7 r         -0.1            3.5            1.6            5.3 r
     I            -0.6 r          0.1 r          0.6            2.1            0.5            2.7 r
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2021 III          99.4 r        102.2 r        102.8 r        129.7 r        108.8 r        130.4 r
     II           99.9 r        101.0 r        101.1          128.8 r        109.8 r        128.9 r
     I            97.9 r         99.6 r        101.7          125.7          109.4          128.4 r

2020 ANNUAL       96.1 r         95.3 r         99.2          123.2          109.1          128.2 r

2020 IV           98.1 r         98.9 r        100.8          125.5          110.2          128.0 r
     III          97.3 r         96.3 r         99.0          122.4          108.1          125.8 r
     II           93.1 r         86.2 r         92.5          126.4          113.0          135.8 r
     I            95.7 r         99.8 r        104.3          119.0          105.5          124.4 r

2019 ANNUAL       96.0 r        101.9 r        106.2          115.4          103.5          120.3 r

2019 IV           95.3 r        101.2 r        106.3          116.8          103.8          122.6 r
     III          95.8 r        101.8 r        106.2          114.9          102.8          120.0 r
     II           96.2 r        101.9 r        105.9          115.2          103.4          119.8 r
     I            96.7 r        102.8 r        106.3          114.7          103.9          118.7 r
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   December 7, 2021
r=revised                                                        Source: Bureau of Labor Statistics



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

2021 III           0.7 r          9.7 r          8.9 r          1.7 r         -4.6 r          1.0 r
     II            5.6 r         -0.1           -5.4           13.1 r          4.3 r          7.1 r
     I             1.1            6.7            5.5            1.8           -1.9            0.7  

2020 ANNUAL       -0.2           -8.1           -8.0            6.8            5.5            7.0  

2020 IV            4.8           11.0            6.0           12.3            9.6            7.2  
     III          44.6           97.9           36.9          -16.1          -19.9          -42.0  
     II          -20.3          -54.4          -42.8           29.7           33.9           62.7  
     I            -2.6          -10.0           -7.6            6.9            5.8            9.7  

2019 ANNUAL       -2.0 r         -2.0 r          0.0            2.3            0.4            4.4 r

2019 IV           -0.8 r         -1.9 r         -1.1           10.2            7.4           11.1 r
     III          -1.1 r         -0.3 r          0.8           -2.4           -3.6           -1.3 r
     II           -1.2 r         -3.6 r         -2.4            0.9           -2.4            2.2 r
     I            -3.3 r         -6.2 r         -2.9            5.8            5.0            9.4 r
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2021 III           3.0 r          6.7 r          3.6 r          7.1 r          1.7 r          4.0 r
     II           12.8           23.7            9.7            2.0 r         -2.6 r         -9.5 r
     I             5.1            1.7           -3.3            5.6            3.6            0.5  

2020 ANNUAL       -0.2           -8.1           -8.0            6.8            5.5            7.0  

2020 IV            4.1           -2.6           -6.4            6.9            5.6            2.6  
     III           2.7           -5.5 r         -8.0            6.4            5.1            3.6  
     II           -6.6          -20.4          -14.8           10.5           10.1           18.3  
     I            -1.4           -4.0           -2.6            3.8            1.7            5.3  

2019 ANNUAL       -2.0 r         -2.0 r          0.0            2.3            0.4            4.4 r

2019 IV           -1.6 r         -3.0 r         -1.4            3.5            1.5            5.2 r
     III          -2.3 r         -2.7 r         -0.4            1.3           -0.5            3.7 r
     II           -2.3 r         -2.0 r          0.3            2.6            0.8            5.1 r
     I            -1.7 r         -0.4 r          1.4            1.6            0.0            3.4 r
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2021 III         101.8 r        103.1 r        101.3 r        131.0 r        109.9 r        128.8 r
     II          101.6 r        100.8 r         99.2          130.5 r        111.2 r        128.5 r
     I           100.2 r        100.8 r        100.6          126.5          110.1          126.3 r

2020 ANNUAL       96.1 r         94.1 r         97.9          123.8          109.6          128.8 r

2020 IV           99.9 r         99.2 r         99.3          126.0          110.6          126.0 r
     III          98.8 r         96.6 r         97.8          122.4          108.1          123.9 r
     II           90.1 r         81.5 r         90.5          127.9          114.3          142.0 r
     I            95.3 r         99.2 r        104.0          119.8          106.2          125.7 r

2019 ANNUAL       96.3 r        102.5 r        106.4          116.0          104.0          120.4 r

2019 IV           96.0 r        101.8 r        106.1          117.8          104.7          122.8 r
     III          96.2 r        102.3 r        106.4          115.0          102.9          119.6 r
     II           96.4 r        102.4 r        106.2          115.7          103.8          120.0 r
     I            96.7 r        103.3 r        106.8          115.4          104.5          119.3 r
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   December 7, 2021
r=revised                                                        Source: Bureau of Labor Statistics



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

2021 III          -3.6 r          0.3 r          4.0            4.1 r         -2.3 r          8.0 r
     II            9.8           12.7 r          2.6            5.8 r         -2.4 r         -3.7 r
     I            -2.1           -1.1            1.0           -2.1           -5.6            0.0  

2020 ANNUAL       -0.4 r         -4.7 r         -4.3            7.1            5.8            7.5 r

2020 IV            0.5           10.9           10.3            7.6            5.1            7.0 r
     III          -0.1           21.4           21.5           -4.8           -9.1           -4.8  
     II           -3.3          -31.7          -29.4           25.2           29.3           29.5  
     I             6.6           -0.3           -6.4            9.8            8.7            3.1  

2019 ANNUAL       -0.7 r         -1.3 r         -0.6            3.9            2.0            4.6 r

2019 IV           -4.3 r         -2.1 r          2.3            0.5           -2.0            5.0 r
     III          -2.2 r         -0.7 r          1.5            1.4            0.1            3.7 r
     II           -3.6 r         -3.1 r          0.5            3.6            0.1            7.4 r
     I             2.0 r         -1.6 r         -3.5            6.9            6.1            4.9 r
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2021 III           1.0 r          5.5 r          4.4            3.8 r         -1.4 r          2.7 r
     II            1.9           10.7            8.6            1.5 r         -3.1 r         -0.4 r
     I            -1.3           -2.4           -1.1            5.9            3.9            7.2  

2020 ANNUAL       -0.4 r         -4.7 r         -4.3            7.1            5.8            7.5 r

2020 IV            0.9           -2.2           -3.0            9.0            7.6            8.0  
     III          -0.4 r         -5.2 r         -4.8            7.1            5.8            7.5 r
     II           -0.9 r         -9.8 r         -9.0            8.8            8.3            9.8 r
     I            -1.0 r         -1.6 r         -0.6            3.8            1.6            4.8 r

2019 ANNUAL       -0.7 r         -1.3 r         -0.6            3.9            2.0            4.6 r

2019 IV           -2.1 r         -1.9 r          0.2            3.1            1.0            5.2 r
     III          -1.1 r         -2.2 r         -1.1            4.3            2.5            5.5 r
     II           -0.8 r         -1.4 r         -0.7            5.2            3.3            6.0 r
     I             1.1 r          0.4 r         -0.7            3.0            1.3            1.9 r
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2021 III          97.3 r        102.4 r        105.3 r        127.5 r        107.0 r        131.1 r
     II           98.2 r        102.3 r        104.3          126.3 r        107.6 r        128.6 r
     I            95.9 r         99.3 r        103.6          124.5          108.3          129.8 r

2020 ANNUAL       96.5 r         97.7 r        101.3          122.4          108.4          126.9 r

2020 IV           96.4 r         99.6 r        103.3          125.1          109.9          129.8 r
     III          96.3 r         97.1 r        100.8          122.9          108.5          127.6 r
     II           96.3 r         92.5 r         96.0          124.4          111.2          129.2 r
     I            97.1 r        101.7 r        104.8          117.6          104.2          121.1 r

2019 ANNUAL       96.8 r        102.5 r        105.9          114.3          102.5          118.0 r

2019 IV           95.6 r        101.8 r        106.5          114.9          102.1          120.2 r
     III          96.6 r        102.3 r        105.9          114.7          102.6          118.7 r
     II           97.2 r        102.5 r        105.5          114.3          102.6          117.7 r
     I            98.1 r        103.4 r        105.4          113.3          102.6          115.6 r
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   December 7, 2021
r=revised                                                        Source: Bureau of Labor Statistics



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

2021 III       0.7       6.8      6.1       5.4      -1.2       4.7     15.5      7.7      8.3      7.8  
     II        0.8 r     5.7 r    4.9       8.5 r     0.0 r     7.6 r  -14.4 r    0.7 r   58.8 r    7.9  
     I         5.0       8.9      3.7       0.0      -3.6      -4.8     18.7      1.6     30.0      5.1  

2020 ANNUAL    2.2      -4.2     -6.3       6.9       5.6       4.6    -10.6     -0.2      2.4      0.1  

2020 IV       16.3      28.4     10.3       7.7       5.2      -7.4     53.3      6.3    -31.4     -0.2  
     III      -0.8      31.7     32.8      -5.7      -9.9      -4.9    -21.4     -9.6    206.1      6.2  
     II        3.8     -39.0    -41.2      25.0      29.1      20.5    -49.3     -6.5     -9.1     -6.8  
     I         1.1      -3.3     -4.3       7.8       6.7       6.6      4.2      5.8    -35.4     -0.4  

2019 ANNUAL    1.4       2.3      0.9       3.9       2.1       2.5      1.9      2.3     -1.2      1.9  

2019 IV        1.1       2.2      1.1       3.6       1.0       2.6     -2.7      0.8      8.8      1.8  
     III       0.5       1.1      0.6       1.0      -0.4       0.5      5.3      2.0      2.6      2.1  
     II        1.3       1.6      0.3       2.3      -1.2       1.0      1.7      1.2     13.3      2.6  
     I         2.7       3.4      0.7       8.0       7.2       5.2      3.2      4.6    -31.2     -1.0  
---------------------------------------------------------------------------------------------------------
                       Percent change from corresponding quarter of previous year

2021 III       5.5      12.1      6.2       5.3       0.1      -0.2     15.8      4.0     11.3      5.1  
     II        5.1 r    18.1 r   12.4       2.5 r    -2.2 r    -2.5 r    5.2 r   -0.4 r   44.3 r    4.7  
     I         5.9       3.0     -2.8       6.2       4.2       0.2     -7.7     -2.3     25.5      1.0  

2020 ANNUAL    2.2      -4.2     -6.3       6.9       5.6       4.6    -10.6     -0.2      2.4      0.1  

2020 IV        4.9      -0.1     -4.7       8.2       6.9       3.1    -10.7     -1.2      5.4     -0.4  
     III       1.3      -5.6     -6.8       7.1       5.8       5.8    -20.3     -2.5     18.3      0.1  
     II        1.6     -11.6    -13.0       9.0       8.5       7.3    -14.2      0.4    -10.0     -0.9  
     I         1.0       0.4     -0.6       3.6       1.5       2.6      2.1      2.4     -4.9      1.5  

2019 ANNUAL    1.4       2.3      0.9       3.9       2.1       2.5      1.9      2.3     -1.2      1.9  

2019 IV        1.4       2.1      0.7       3.7       1.6       2.3      1.8      2.1     -3.4      1.4  
     III       1.1       1.7      0.7       3.5       1.7       2.4      3.2      2.6     -2.4      2.0  
     II        2.2       3.0      0.8       4.5       2.6       2.2      1.1      1.9      0.8      1.7  
     I         0.9       2.3      1.4       4.1       2.5       3.2      1.4      2.6      0.6      2.3  
---------------------------------------------------------------------------------------------------------
                                            Indexes 2012=100

2021 III     111.7     125.7    112.6     136.1     114.2     121.9    100.4    114.7    130.4    117.0  
     II      111.5 r   123.7 r  111.0     134.3 r   114.5 r   120.5 r   96.9 r  112.6 r  127.8 r  114.8 r
     I       111.3     122.0    109.6     131.6     114.5     118.3    100.7    112.4    113.8    112.6  

2020 ANNUAL  106.7     113.7    106.5     128.9     114.1     120.8     96.3    112.6    100.9    111.0  

2020 IV      109.9     119.4    108.6     131.6     115.6     119.8     96.5    112.0    106.6    111.2  
     III     105.8     112.2    106.0     129.2     114.1     122.1     86.7    110.3    117.2    111.3  
     II      106.1     104.7     98.7     131.1     117.2     123.6     92.1    113.1     88.6    109.6  
     I       105.1     118.5    112.8     124.0     109.9     118.0    109.1    115.0     90.7    111.6  

2019 ANNUAL  104.4     118.7    113.7     120.6     108.1     115.5    107.7    112.9     98.5    110.8  

2019 IV      104.8     119.5    114.0     121.7     108.1     116.1    108.0    113.4    101.2    111.7  
     III     104.5     118.8    113.7     120.6     107.9     115.4    108.7    113.2     99.1    111.2  
     II      104.4     118.5    113.5     120.3     108.0     115.3    107.3    112.6     98.4    110.6  
     I       104.0     118.0    113.4     119.6     108.3     115.0    106.9    112.3     95.4    109.9  
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                         December 7, 2021
r=revised                                                              Source: Bureau of Labor Statistics



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

SIZE OF REVISIONS:  Productivity and cost measures are revised on a regular schedule as more 
complete data become available. The first estimate is published within 40 days of the close of the 
reference quarter, the second estimate approximately 30 days later, and the third estimate approximately 
60 days after the second estimate. Based on past revisions, the third estimate of nonfarm business sector 
quarterly labor productivity growth has differed from the first estimate by -1.1 to +1.4 percentage point 
about 80 percent of the time. This interval is based on estimates for reference quarters from the first 
quarter of 2001 to the second quarter of 2021. For more about revisions to labor productivity growth see 
“How large are revisions to estimates of quarterly labor productivity growth?” at 
www.bls.gov/osmr/research-papers/2021/ec210040.htm.

					  Table Footnotes

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

(2) The change for recent quarters is based on the Consumer Price Index for all urban consumers 
(CPI-U). The trend from 1978-2020 is based on the Consumer Price Index Retroactive series (CPI-U-
RS).

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

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

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

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

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

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

Last Modified Date: December 07, 2021