Productivity and Costs News Release



Transmission of material in this release is embargoed until       USDL 18-0153             
8:30 a.m. (EST) Thursday, February 1, 2018

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



                        PRODUCTIVITY AND COSTS
         Fourth Quarter and Annual Averages 2017, Preliminary 


Nonfarm business sector labor productivity decreased 0.1 percent during the 
fourth quarter of 2017, the U.S. Bureau of Labor Statistics reported today, as 
output increased 3.2 percent and hours worked increased 3.3 percent. (All 
quarterly percent changes in this release are seasonally adjusted annual 
rates.) From the fourth quarter of 2016 to the fourth quarter of 2017, 
productivity increased 1.1 percent, reflecting a 3.2-percent increase in 
output and a 2.1-percent increase in hours worked. (See tables A1 and 2.) 
Annual average productivity increased 1.2 percent from 2016 to 2017. (See 
table C1.) 

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. 

Unit labor costs in the nonfarm business sector increased 2.0 percent in the 
fourth quarter of 2017, due primarily to a 1.8-percent increase in hourly 
compensation. Unit labor costs increased 1.3 percent over the last four 
quarters. (See tables A1 and 2.) 

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 output per hour tend to reduce them.

Manufacturing sector labor productivity increased 5.7 percent in the fourth 
quarter of 2017, as output increased 7.3 percent and hours worked rose 1.5 
percent. These were the largest quarterly increases in manufacturing sector 
productivity and output since the second quarter of 2010, when output per hour 
increased 7.0 percent and output jumped 10.7 percent. Productivity increased 
6.7 percent in the durable goods manufacturing sector and 4.5 percent in the 
nondurable goods sector in the fourth quarter of 2017. Over the last four 
quarters, total manufacturing sector productivity increased 1.1 percent, as 
output increased 2.7 percent and hours worked increased 1.6 percent.  Unit 
labor costs in manufacturing decreased 3.7 percent in the fourth quarter of 
2017 and increased 1.1 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. 

Revised measures

Revised and previously published measures for the third quarter of 2017 are 
shown in tables A2 and B1 and cover the following major sectors: nonfarm 
business, business, manufacturing, and nonfinancial corporations.

In the third quarter of 2017, nonfarm business productivity was revised down 
0.3 percentage point, to an increase of 2.7 percent. (See table B1.) Unit 
labor costs in the nonfarm business sector decreased 0.1 percent in the third 
quarter--rather than declining 0.2 percent as previously reported.

In the manufacturing sector, productivity was revised down 0.5 percentage 
point, to a decrease of 4.9 percent. Manufacturing unit labor costs increased 
5.4 percent, a 0.6 percentage point increase over the previously reported 
figure.

In the nonfinancial corporate sector, productivity was revised down 0.4 
percentage point in the third quarter of 2017, to a decrease of 0.4 percent. 
This downward revision to productivity is due primarily to a 0.3-percentage 
point downward revision to output. (See table A2.)

Annual averages
 
Table C1 presents annual average changes for the most recent 5 years for the 
nonfarm business sector and the total manufacturing sector. Nonfarm business 
sector productivity grew 1.2 percent in 2017, as output and hours increased 
2.9 percent and 1.6 percent, respectively. In 2016, productivity declined 0.1 
percent. The average annual rate of nonfarm business sector productivity 
growth from 2007 to 2017—corresponding to the current business cycle--is 1.2 
percent, which is below the long-term rate from 1947 to 2017 of 2.1 percent.

Unit labor costs in the nonfarm business sector increased 0.2 percent in 2017, 
reflecting increases of 1.5 percent in hourly compensation and 1.2 percent in 
productivity. Real hourly compensation, which takes into account changes in 
consumer prices, decreased 0.7 percent in 2017.

In the manufacturing sector, productivity increased 0.7 percent in 2017, as 
output increased 1.7 percent and hours worked increased 1.0 percent. 
Manufacturing sector productivity has grown less than 1.0 percent in each of 
the last 7 years. The average annual rate of manufacturing productivity growth 
from 2007 to 2017 is 0.8 percent, well below the long-term rate from 1987 to 
2017 of 2.7 percent. Unit labor costs increased 0.9 percent in 2017. 

Quarterly and annual data for all sectors from 2015 to 2017 appear in tables 
1-6. Full historical measures can be found on the Productivity and Costs home 
page: www.bls.gov/lpc/#data.

______________  
The revised Productivity and Costs news release for fourth-quarter 2017 is 
scheduled to be released on Wednesday, March 7, 2018 at 8:30 a.m. (EST).


==============================================================================
Data in this release do not reflect the annual benchmark revision of the BLS 
Current Employment Statistics program data to be released February 2, 2018. 
This benchmark will be incorporated in our next release on March 7, 2018.
==============================================================================





=========================================================================================================================
Table A1. Labor productivity growth and related measures - preliminary fourth-quarter 2017
(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          -0.1          3.2      3.3         1.8          -1.8            2.0
                        A year ago                 1.1          3.2      2.1         2.4           0.3            1.3
                        
Business                Previous quarter          -0.9          3.1      4.1         1.1          -2.5            2.0
                        A year ago                 0.8          3.0      2.3         2.2           0.1            1.5
                        
Manufacturing           Previous quarter           5.7          7.3      1.5         1.8          -1.8           -3.7
                        A Year ago                 1.1          2.7      1.6         2.2           0.0            1.1
 Durable
 manufacturing          Previous quarter           6.7          8.2      1.4         2.6          -1.0           -3.8
                        A year ago                 1.4          2.7      1.3         2.7           0.5            1.3
 Nondurable
 manufacturing          Previous quarter           4.5          6.4      1.8         0.3          -3.3           -4.0
                        A year ago                 0.5          2.6      2.1         1.3          -0.8            0.8
=========================================================================================================================
Table A2. Labor productivity growth and related measures – revised and previously published third-quarter 2017 
(percent change from previous quarter at annual rate)


                                                Labor                   Hours    Hourly         Real hourly    Unit labor
 Sector                                         productivity   Output   worked   compensation   compensation   costs
 -------------------------------------------------------------------------------------------------------------------------      
 Nonfinancial          Revised                    -0.4          1.0      1.3         2.4           0.4            2.8
 corporate       Previously published              0.0          1.3      1.2         2.5           0.5            2.5
=========================================================================================================================
 Table B1. Labor productivity growth and related measures – revised and previously published third-quarter 2017
 (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              2.7          4.0      1.2         2.7           0.6           -0.1
                         Previously published      3.0          4.1      1.1         2.7           0.7           -0.2
                        
Business                      Revised              3.3          3.9      0.6         3.2           1.2           -0.1
                         Previously published      3.6          4.1      0.5         3.3           1.3           -0.3
                        
Manufacturing                 Revised             -4.9         -1.6      3.5         0.2          -1.8            5.4  
                         Previously published     -4.4         -1.1      3.5         0.2          -1.8            4.8

 Durable                      Revised             -5.0         -2.2      3.0         0.1          -1.9            5.3
 manufacturing           Previously published     -4.7         -1.7      3.1         0.1          -1.9            5.0
                         
 Nondurable                   Revised             -5.2         -1.0      4.4         0.4          -1.6            5.9
 manufacturing           Previously published     -4.4         -0.4      4.1         0.5          -1.5            5.1
=========================================================================================================================
Table C1. Labor productivity growth and related measures – annual average changes: 2013-2017


                                        Labor                   Hours    Hourly         Real hourly    Unit labor
Sector                  Year            productivity   Output   worked   compensation   compensation   costs
-------------------------------------------------------------------------------------------------------------------------
Nonfarm business..... ...2017              1.2          2.9       1.6        1.5           -0.7           0.2
 ........................2016             -0.1          1.5       1.6        1.0           -0.2           1.1
 ........................2015              1.3          3.4       2.1        3.1            3.0           1.8
 ........................2014              1.0          3.3       2.2        2.9            1.3           1.9
 ........................2013              0.3          2.0       1.7        1.2           -0.3           0.9
                        
Manufacturing....... ....2017              0.7          1.7       1.0        1.6           -0.5           0.9
 ........................2016              0.4          0.4       0.0        0.7           -0.5           0.3
 ........................2015              0.2          1.2       1.0        2.5            2.4           2.2
 ........................2014              0.0          1.6       1.5        2.8            1.2           2.8
 ........................2013              0.9          1.8       0.8        0.2           -1.3          -0.8
=========================================================================================================================


 
 				  TECHNICAL NOTES

Labor Hours 

Hours 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.

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. Business output accounted for about 75 percent of the value of GDP in 
2016. Nonfarm business, which excludes farming, also accounted for about 75 
percent of GDP in 2016.

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 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 50 percent of 
the value of GDP in 2016. 
     
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 2009=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: 202-691-5606; 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)

2017 ANNUAL    1.2         2.7        1.5        1.5       -0.6        0.3        3.2        1.6  

2017 IV       -0.9         3.1        4.1        1.1       -2.5        2.0        2.8        2.4  
     III       3.3 r       3.9 r      0.6 r      3.2 r      1.2 r     -0.1 r      4.6 r      1.9 r
     II        1.4         3.7        2.3        0.3        0.7       -1.0        2.8        0.6  
     I        -0.8         1.4        2.1        4.3        1.1        5.1       -3.0        1.5  

2016 ANNUAL    0.0         1.6        1.6        1.0       -0.2        1.0        1.0        1.0  

2016 IV        2.0         2.2        0.2       -3.7       -6.5       -5.5       13.3        2.2  
     III       2.7         3.3        0.6        2.8        1.0        0.1        2.5        1.1  
     II        0.6         2.6        2.0        4.4        2.0        3.7        0.0        2.1  
     I        -1.1         0.4        1.5       -3.8       -3.9       -2.8        5.2        0.5  

2015 ANNUAL    1.2         3.5        2.3        2.9        2.8        1.7       -0.8        0.6  

2015 IV       -2.7         0.2        3.0        4.3        3.9        7.2       -9.3       -0.2  
     III       1.6         1.6        0.0        1.2       -0.3       -0.4        3.1        1.1  
     II        1.6         3.3        1.7        3.9        1.5        2.3        1.6        2.0  
     I         2.4         4.0        1.5        3.0        5.6        0.5       -2.4       -0.7  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2017 ANNUAL    1.2         2.7        1.5        1.5       -0.6        0.3        3.2        1.6  

2017 IV        0.8         3.0        2.3        2.2        0.1        1.5        1.8        1.6  
     III       1.5         2.8        1.3        1.0       -1.0 r     -0.5        4.3 r      1.6  
     II        1.3         2.6        1.3        0.9       -1.0       -0.4        3.7        1.4  
     I         1.1         2.4        1.2        1.9       -0.7        0.8        3.0        1.7  

2016 ANNUAL    0.0         1.6        1.6        1.0       -0.2        1.0        1.0        1.0  

2016 IV        1.0         2.1        1.1       -0.1       -1.9       -1.2        5.1        1.5  
     III      -0.1         1.6        1.8        1.9        0.7        2.0       -0.6        0.9  
     II       -0.4         1.2        1.6        1.5        0.4        1.9       -0.4        0.9  
     I        -0.2         1.4        1.5        1.3        0.2        1.5        0.0        0.8  

2015 ANNUAL    1.2         3.5        2.3        2.9        2.8        1.7       -0.8        0.6  

2015 IV        0.7         2.3        1.6        3.1        2.6        2.4       -1.9        0.5  
     III       0.9         2.8        1.9        3.2        3.0        2.3       -1.6        0.6  
     II        1.4         4.1        2.7        3.5        3.5        2.1       -1.1        0.7  
     I         1.6         4.8        3.1        1.9        1.9        0.3        1.5        0.8  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2017 ANNUAL  108.2       123.5      114.2      117.4      102.8      108.6      117.1      112.1  

2017 IV      108.5       125.1      115.3      118.2      102.5      108.9      118.5      112.9  
     III     108.8 r     124.1 r    114.1 r    117.9 r    103.1 r    108.4 r    117.7 r    112.3 r
     II      107.9       123.0      114.0      116.9      102.8      108.4      116.4      111.7  
     I       107.5       121.8      113.3      116.8      102.7      108.7      115.6      111.6  

2016 ANNUAL  106.9       120.3      112.5      115.7      103.4      108.2      113.4      110.4  

2016 IV      107.7       121.4      112.7      115.6      102.4      107.3      116.5      111.2  
     III     107.2       120.8      112.7      116.7      104.1      108.9      112.9      110.5  
     II      106.5       119.8      112.5      115.9      103.9      108.8      112.2      110.2  
     I       106.3       119.0      112.0      114.6      103.3      107.8      112.2      109.7  

2015 ANNUAL  106.9       118.4      110.7      114.5      103.7      107.1      112.3      109.3  

2015 IV      106.6       118.9      111.5      115.8      104.4      108.6      110.8      109.5  
     III     107.3       118.8      110.7      114.6      103.4      106.7      113.5      109.6  
     II      106.9       118.4      110.7      114.2      103.5      106.9      112.6      109.3  
     I       106.5       117.4      110.3      113.1      103.1      106.3      112.2      108.7  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   February 1, 2018
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)

2017 ANNUAL    1.2         2.9        1.6        1.5       -0.7        0.2        3.2        1.5  

2017 IV       -0.1         3.2        3.3        1.8       -1.8        2.0        3.0        2.4  
     III       2.7 r       4.0 r      1.2 r      2.7        0.6 r     -0.1 r      4.8 r      2.0 r
     II        1.5         3.9        2.4        0.3        0.6       -1.2        3.0        0.6  
     I         0.1         1.8        1.6        4.9        1.7        4.8       -3.9        0.9  

2016 ANNUAL   -0.1         1.5        1.6        1.0       -0.2        1.1        1.4        1.2  

2016 IV        1.3         2.2        1.0       -4.5       -7.3       -5.7       13.9        2.3  
     III       2.5         3.3        0.8        2.5        0.7        0.1        3.1        1.3  
     II        0.8         2.5        1.7        4.8        2.4        3.9        0.0        2.2  
     I        -1.2         0.2        1.4       -3.8       -3.9       -2.7        5.8        0.9  

2015 ANNUAL    1.3         3.4        2.1        3.1        3.0        1.8       -0.3        0.9  

2015 IV       -2.6         0.3        2.9        4.5        4.1        7.2       -8.8        0.1  
     III       1.3         1.3        0.0        1.1       -0.4       -0.2        3.0        1.2  
     II        1.3         3.3        2.0        3.6        1.2        2.3        1.5        1.9  
     I         2.7         4.0        1.2        3.3        6.0        0.6       -0.9        0.0  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2017 ANNUAL    1.2         2.9        1.6        1.5       -0.7        0.2        3.2        1.5  

2017 IV        1.1         3.2        2.1        2.4        0.3        1.3        1.7        1.5  
     III       1.4 r       3.0        1.5        0.8       -1.2 r     -0.6 r      4.3 r      1.5  
     II        1.3         2.8        1.4        0.8       -1.1       -0.6        3.8        1.3  
     I         1.2         2.5        1.3        1.9       -0.7        0.7        3.1        1.7  

2016 ANNUAL   -0.1         1.5        1.6        1.0       -0.2        1.1        1.4        1.2  

2016 IV        0.8         2.1        1.2       -0.3       -2.1       -1.2        5.6        1.7  
     III      -0.1         1.6        1.7        1.9        0.8        2.1       -0.1        1.1  
     II       -0.4         1.1        1.5        1.6        0.5        2.0       -0.2        1.1  
     I        -0.3         1.3        1.6        1.3        0.2        1.6        0.2        1.0  

2015 ANNUAL    1.3         3.4        2.1        3.1        3.0        1.8       -0.3        0.9  

2015 IV        0.7         2.2        1.5        3.1        2.7        2.4       -1.4        0.8  
     III       0.8         2.7        1.9        3.3        3.1        2.4       -1.3        0.8  
     II        1.6         4.1        2.5        3.8        3.8        2.2       -0.5        1.0  
     I         1.9         4.7        2.8        2.3        2.3        0.4        2.0        1.1  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2017 ANNUAL  108.3       123.7      114.2      117.7      103.0      108.6      117.0      112.1  

2017 IV      108.8       125.3      115.2      118.5      102.7      108.9      118.6      112.9  
     III     108.8 r     124.3 r    114.3 r    117.9 r    103.2 r    108.4 r    117.7 r    112.3 r
     II      108.1       123.1      113.9      117.2      103.0      108.4      116.3      111.7  
     I       107.7       122.0      113.3      117.1      102.9      108.7      115.5      111.5  

2016 ANNUAL  107.0       120.2      112.4      116.0      103.7      108.4      113.4      110.5  

2016 IV      107.6       121.4      112.8      115.7      102.4      107.5      116.6      111.3  
     III     107.3       120.8      112.5      117.0      104.4      109.1      112.9      110.7  
     II      106.6       119.8      112.3      116.3      104.2      109.1      112.0      110.3  
     I       106.4       119.0      111.9      114.9      103.6      108.0      112.0      109.7  

2015 ANNUAL  107.1       118.5      110.7      114.8      103.9      107.2      111.8      109.1  

2015 IV      106.7       119.0      111.5      116.1      104.6      108.7      110.4      109.5  
     III     107.4       118.9      110.7      114.8      103.6      106.9      113.0      109.4  
     II      107.1       118.5      110.7      114.5      103.7      106.9      112.2      109.1  
     I       106.7       117.6      110.1      113.5      103.4      106.3      111.8      108.6  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   February 1, 2018
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)

2017 ANNUAL        0.7            1.7            1.0            1.6           -0.5            0.9  

2017 IV            5.7            7.3            1.5            1.8           -1.8           -3.7  
     III          -4.9 r         -1.6 r          3.5            0.2           -1.8            5.4 r
     II            3.6            2.9           -0.6            2.3            2.6           -1.2  
     I             0.2            2.3            2.1            4.4            1.2            4.2  

2016 ANNUAL        0.4            0.4            0.0            0.7           -0.5            0.3  

2016 IV            2.0            1.8           -0.2           -4.2           -7.1           -6.1  
     III          -0.5            0.2            0.7            2.6            0.8            3.1  
     II           -0.8           -0.9           -0.1            7.1            4.7            8.0  
     I             1.3            1.0           -0.3          -10.1          -10.2          -11.3  

2015 ANNUAL        0.2            1.2            1.0            2.5            2.4            2.2  

2015 IV           -1.2           -0.3            1.0            9.1            8.7           10.5  
     III           3.1            1.9           -1.2            1.8            0.3           -1.3  
     II            0.7            0.8            0.0            3.5            1.1            2.7  
     I            -0.4           -0.8           -0.4            0.0            2.6            0.4  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2017 ANNUAL        0.7            1.7            1.0            1.6           -0.5            0.9  

2017 IV            1.1            2.7            1.6            2.2            0.0            1.1  
     III           0.2 r          1.3 r          1.2            0.6           -1.3            0.5 r
     II            1.3            1.8            0.5            1.2           -0.7           -0.1  
     I             0.2            0.8            0.6            2.4           -0.2            2.2  

2016 ANNUAL        0.4            0.4            0.0            0.7           -0.5            0.3  

2016 IV            0.5            0.5            0.0           -1.4           -3.1           -1.9  
     III          -0.3            0.0            0.3            1.9            0.7            2.2  
     II            0.6            0.4           -0.2            1.7            0.6            1.1  
     I             1.0            0.8           -0.1            0.8           -0.3           -0.1  

2015 ANNUAL        0.2            1.2            1.0            2.5            2.4            2.2  

2015 IV            0.6            0.4           -0.2            3.5            3.1            3.0  
     III           0.5            1.1            0.6            2.6            2.4            2.0  
     II           -0.1            1.2            1.3            2.7            2.7            2.8  
     I            -0.1            2.2            2.2            1.0            1.1            1.1  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2017 ANNUAL      108.4          118.1          108.9          113.3           99.1          104.5  

2017 IV          109.1          119.6          109.6          113.9           98.7          104.4  
     III         107.6 r        117.5 r        109.2 r        113.3 r         99.2 r        105.3 r
     II          109.0 r        118.0 r        108.3          113.3           99.6          104.0 r
     I           108.0          117.2          108.5          112.7           99.0          104.3  

2016 ANNUAL      107.7          116.1          107.8          111.5           99.7          103.5  

2016 IV          108.0          116.5          107.9          111.4           98.7          103.2  
     III         107.4          116.0          107.9          112.6          100.5          104.9  
     II          107.6          115.9          107.8          111.9          100.3          104.1  
     I           107.8          116.2          107.8          110.0           99.2          102.1  

2015 ANNUAL      107.2          115.6          107.8          110.7          100.2          103.2  

2015 IV          107.5          115.9          107.9          113.0          101.9          105.2  
     III         107.8          116.0          107.6          110.6           99.8          102.6  
     II          107.0          115.4          107.9          110.1           99.7          102.9  
     I           106.8          115.2          107.9          109.1           99.4          102.2  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   February 1, 2018
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)

2017 ANNUAL        1.1            1.9            0.8            1.9           -0.3            0.8  

2017 IV            6.7            8.2            1.4            2.6           -1.0           -3.8  
     III          -5.0 r         -2.2 r          3.0 r          0.1           -1.9            5.3 r
     II            5.4 r          2.6           -2.6            5.6            5.9            0.2  
     I            -1.0            2.6            3.6            2.5           -0.6            3.6  

2016 ANNUAL        0.5            0.2           -0.3            1.0           -0.3            0.5  

2016 IV            1.8            2.0            0.2           -4.3           -7.1           -6.0  
     III           0.7            1.0            0.3            2.5            0.7            1.7  
     II            1.9            0.2           -1.6            9.5            7.0            7.5  
     I            -0.6            0.1            0.7          -11.4          -11.5          -10.9  

2015 ANNUAL        0.2            0.8            0.6            3.0            2.9            2.8  

2015 IV           -2.5           -1.9            0.7           10.8           10.4           13.7  
     III           3.9            1.8           -2.0            1.4           -0.2           -2.4  
     II            1.1            0.6           -0.5            2.8            0.5            1.7  
     I            -1.4           -2.5           -1.1            2.0            4.6            3.4  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2017 ANNUAL        1.1            1.9            0.8            1.9           -0.3            0.8  

2017 IV            1.4            2.7            1.3            2.7            0.5            1.3  
     III           0.2 r          1.2 r          1.0            0.9           -1.0            0.7 r
     II            1.7            2.0            0.3            1.5           -0.4           -0.2  
     I             0.8            1.4            0.6            2.4           -0.1            1.6  

2016 ANNUAL        0.5            0.2           -0.3            1.0           -0.3            0.5  

2016 IV            1.0            0.8           -0.1           -1.2           -3.0           -2.2  
     III          -0.1           -0.2            0.0            2.4            1.3            2.6  
     II            0.6            0.0           -0.6            2.2            1.1            1.5  
     I             0.4            0.1           -0.3            0.6           -0.5            0.1  

2015 ANNUAL        0.2            0.8            0.6            3.0            2.9            2.8  

2015 IV            0.2           -0.5           -0.7            4.2            3.7            3.9  
     III           0.9            0.5           -0.3            3.0            2.9            2.1  
     II           -0.1            0.8            0.9            3.3            3.3            3.4  
     I            -0.1            2.3            2.4            1.6            1.7            1.8  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2017 ANNUAL      113.4          126.2          111.3          113.0           98.9           99.6  

2017 IV          114.5          128.0          111.8          113.9           98.8           99.5  
     III         112.6 r        125.5 r        111.4 r        113.2 r         99.1 r        100.5 r
     II          114.1 r        126.2 r        110.6          113.2           99.5           99.2 r
     I           112.6          125.4          111.4          111.6           98.1           99.2  

2016 ANNUAL      112.2          123.9          110.4          110.9           99.1           98.8  

2016 IV          112.9          124.6          110.4          111.0           98.3           98.3  
     III         112.3          123.9          110.3          112.2          100.1           99.8  
     II          112.2          123.6          110.2          111.5           99.9           99.4  
     I           111.6          123.6          110.7          109.0           98.2           97.6  

2015 ANNUAL      111.7          123.7          110.7          109.8           99.4           98.3  

2015 IV          111.8          123.5          110.5          112.3          101.3          100.5  
     III         112.5          124.1          110.3          109.5           98.8           97.3  
     II          111.4          123.6          110.9          109.1           98.9           97.9  
     I           111.1          123.4          111.0          108.4           98.7           97.5  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   February 1, 2018
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)

2017 ANNUAL        0.2            1.4            1.3            1.1           -1.1            0.9  

2017 IV            4.5            6.4            1.8            0.3           -3.3           -4.0  
     III          -5.2 r         -1.0 r          4.4 r          0.4 r         -1.6 r          5.9 r
     II            0.4            3.3            2.9           -3.3           -3.0           -3.6  
     I             2.5            2.0           -0.5            8.0            4.7            5.3  

2016 ANNUAL        0.2            0.7            0.5            0.4           -0.9            0.1  

2016 IV            2.3            1.5           -0.8           -4.3           -7.2           -6.5  
     III          -2.2           -0.8            1.5            2.8            1.0            5.2  
     II           -4.5           -2.2            2.5            3.0            0.7            7.9  
     I             4.0            2.1           -1.8           -7.7           -7.8          -11.3  

2015 ANNUAL        0.2            1.9            1.7            1.5            1.4            1.3  

2015 IV            0.1            1.6            1.4            6.1            5.7            5.9  
     III           1.8            2.0            0.2            2.8            1.2            1.0  
     II            0.1            1.0            1.0            4.8            2.4            4.7  
     I             0.6            1.3            0.7           -3.5           -1.0           -4.1  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2017 ANNUAL        0.2            1.4            1.3            1.1           -1.1            0.9  

2017 IV            0.5            2.6            2.1            1.3           -0.8            0.8  
     III           0.0 r          1.4 r          1.5 r          0.1           -1.8            0.1 r
     II            0.7            1.5            0.8            0.7           -1.2           -0.1 r
     I            -0.5            0.1            0.7            2.3           -0.3            2.8  

2016 ANNUAL        0.2            0.7            0.5            0.4           -0.9            0.1  

2016 IV           -0.2            0.2            0.3           -1.7           -3.4           -1.5  
     III          -0.7            0.2            0.9            0.9           -0.2            1.6  
     II            0.3            0.9            0.6            0.9           -0.2            0.6  
     I             1.5            1.7            0.2            1.3            0.2           -0.2  

2015 ANNUAL        0.2            1.9            1.7            1.5            1.4            1.3  

2015 IV            0.7            1.5            0.8            2.5            2.0            1.8  
     III          -0.3            1.9            2.2            1.9            1.8            2.2  
     II           -0.1            1.8            1.9            1.7            1.7            1.8  
     I             0.4            2.3            1.9           -0.2           -0.1           -0.6  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2017 ANNUAL      105.8          111.2          105.0          113.3           99.2          107.1  

2017 IV          106.0          112.5          106.2          113.2           98.1          106.8  
     III         104.9 r        110.8 r        105.7 r        113.1 r         99.0 r        107.9 r
     II          106.3 r        111.1 r        104.6          113.0           99.4          106.3 r
     I           106.2          110.2          103.8          113.9          100.1          107.3  

2016 ANNUAL      105.7          109.6          103.7          112.1          100.2          106.1  

2016 IV          105.5          109.7          103.9          111.8           99.0          105.9  
     III         104.9          109.2          104.1          113.0          100.8          107.7  
     II          105.5          109.5          103.8          112.2          100.6          106.4  
     I           106.7          110.1          103.1          111.4          100.4          104.4  

2015 ANNUAL      105.4          108.8          103.2          111.7          101.1          106.0  

2015 IV          105.7          109.5          103.6          113.6          102.5          107.5  
     III         105.6          109.1          103.2          112.0          101.1          106.0  
     II          105.2          108.5          103.2          111.2          100.8          105.7  
     I           105.2          108.2          102.9          109.9          100.2          104.5  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   February 1, 2018
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)

2017 III      -0.4 r     1.0 r    1.3 r     2.4 r     0.4 r     2.8 r    2.6 r    2.7 r    2.3 r    2.7 r
     II        3.3       6.4      3.0       0.2       0.5      -3.0     -1.8     -2.6     13.7     -0.6  
     I         2.0       4.1      2.0       4.3       1.1       2.3     -1.0      1.2     -2.7      0.7  

2016 ANNUAL   -0.1       1.4      1.5       1.1      -0.2       1.2     -0.5      0.7     -5.3     -0.2  

2016 IV       -4.5      -3.9      0.6      -3.6      -6.5       0.9      9.2      3.5     -2.8      2.7  
     III       5.9       7.4      1.5       1.9       0.1      -3.7     -4.5     -4.0      7.3     -2.6  
     II       -2.0      -0.6      1.4       3.7       1.4       5.9      1.7      4.5    -28.8     -0.8  
     I         0.5       1.1      0.6      -1.8      -1.9      -2.3    -13.0     -5.9     47.7      0.0  

2015 ANNUAL    1.4       3.6      2.2       3.0       2.9       1.6      0.4      1.2     -5.1      0.3  

2015 IV       -1.4       1.5      3.0       3.4       3.0       4.9     13.8      7.7    -41.5     -0.9  
     III       0.7       2.5      1.8       0.5      -1.0      -0.2     -0.1     -0.2      5.3      0.6  
     II       -2.0      -0.9      1.1       2.7       0.4       4.8      4.0      4.5     -1.3      3.7  
     I         3.3       4.6      1.3       7.1       9.9       3.7     -2.2      1.8    -23.7     -2.5  
---------------------------------------------------------------------------------------------------------
                       Percent change from corresponding quarter of previous year

2017 III       0.1 r     1.8 r    1.7       0.8      -1.2 r     0.7 r    2.2 r    1.2 r    2.5      1.3  
     II        1.6       3.4      1.8       0.7      -1.2      -0.9      0.4     -0.5      3.7      0.0  
     I         0.3       1.7      1.4       1.5      -1.0       1.3      1.2      1.3     -7.8      0.0  

2016 ANNUAL   -0.1       1.4      1.5       1.1      -0.2       1.2     -0.5      0.7     -5.3     -0.2  

2016 IV       -0.1       0.9      1.0       0.0      -1.8       0.1     -2.0     -0.6      2.3     -0.2  
     III       0.7       2.3      1.6       1.8       0.6       1.1     -1.0      0.4     -9.9     -1.1  
     II       -0.6       1.1      1.7       1.4       0.3       2.0      0.1      1.4    -10.3     -0.3  
     I        -0.6       1.1      1.6       1.2       0.1       1.7      0.7      1.4     -2.6      0.8  

2015 ANNUAL    1.4       3.6      2.2       3.0       2.9       1.6      0.4      1.2     -5.1      0.3  

2015 IV        0.1       1.9      1.8       3.4       3.0       3.3      3.7      3.4    -17.5      0.2  
     III       1.0       2.8      1.8       3.3       3.1       2.3      0.1      1.6     -6.1      0.4  
     II        1.8       3.9      2.1       3.5       3.5       1.6     -0.4      1.0     -2.1      0.5  
     I         2.7       6.0      3.2       1.9       2.0      -0.8     -1.8     -1.1      7.6      0.1  
---------------------------------------------------------------------------------------------------------
                                            Indexes 2009=100

2017 III     108.8 r   127.1 r  116.9 r   117.1 r   102.5 r   107.7 r  101.1 r  105.5 r  139.8 r  109.1 r
     II      108.9     126.8    116.5     116.4     102.4     106.9    100.4    104.8    139.0    108.3  
     I       108.0     124.9    115.7     116.3     102.2     107.7    100.9    105.4    134.6    108.5  

2016 ANNUAL  107.7     123.5    114.6     115.4     103.1     107.1     99.9    104.7    138.0    108.2  

2016 IV      107.4     123.6    115.1     115.1     101.9     107.1    101.1    105.1    135.5    108.3  
     III     108.7     124.9    114.9     116.2     103.7     106.9     98.9    104.2    136.5    107.6  
     II      107.1     122.6    114.5     115.6     103.6     107.9    100.1    105.3    134.1    108.3  
     I       107.7     122.8    114.1     114.6     103.3     106.4     99.7    104.1    146.0    108.5  

2015 ANNUAL  107.9     121.8    112.9     114.1     103.3     105.8    100.5    104.0    145.8    108.4  

2015 IV      107.5     122.5    113.9     115.1     103.8     107.0    103.2    105.7    132.4    108.5  
     III     107.9     122.0    113.1     114.1     103.0     105.7     99.9    103.8    151.4    108.8  
     II      107.8     121.3    112.6     114.0     103.3     105.8     99.9    103.8    149.5    108.6  
     I       108.3     121.6    112.2     113.2     103.2     104.6     98.9    102.7    150.0    107.6  
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                         February 1, 2018
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.

RELIABILITY: Productivity and cost measures are regularly revised as more 
complete information becomes available.  The measures are first published 
within 40 days of the close of the reference period; revisions appear 30 days 
later, and second revisions after an additional 60 days.  In the business 
sector, the third publication (second revision) of a quarterly index of output 
per hour of all persons has differed from the initial value by between -1.5 
and 1.4 index points approximately 95 percent of the time. This interval is 
based on the performance of this measure between the fourth quarter of 1995 
and the third quarter of 2017.

      				
      				
      				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 1978-2016 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 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.


Last Modified Date: February 01, 2018