Productivity and Costs News Release

Transmission of material in this release is embargoed until			              USDL 19-0903
8:30 a.m. (EDT) Thursday, June 6, 2019

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

                                        PRODUCTIVITY AND COSTS 
                                     First Quarter 2019, Revised
                                     
Nonfarm business sector labor productivity increased 3.4 percent in the first quarter of 2019, the U.S. 
Bureau of Labor Statistics reported today, as output increased 3.9 percent and hours worked increased 
0.5 percent. (All quarterly percent changes in this release are seasonally adjusted annual rates.) From the 
first quarter of 2018 to the first quarter of 2019, productivity increased 2.4 percent, reflecting a 3.9-
percent increase in output and a 1.5-percent increase in hours worked. (See table A1.) The four-quarter 
increase in productivity is the largest since a 2.7-percent gain in the third quarter of 2010. 

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 decreased 1.6 percent in the first quarter of 2019, and 
decreased 0.8 percent over the last four quarters--the lowest four-quarter rate since a 1.7-percent decline 
in the fourth quarter of 2013. (See and table 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 0.4 percent in the first quarter of 2019, as output 
decreased 2.0 percent and hours worked decreased 2.4 percent. Productivity declined 0.6 percent in the 
durable manufacturing sector, reflecting a 2.8-percent decrease in output and a 2.2-percent decrease in 
hours worked. Productivity increased 1.6 percent in the nondurable manufacturing sector as output fell 
1.1 percent but hours worked fell 2.6 percent. Over the last four quarters, total manufacturing sector 
productivity increased 0.8 percent, as output increased 1.6 percent and hours worked increased 0.7 
percent. Unit labor costs in the manufacturing sector increased 2.0 percent in the first quarter of 2019 
and saw no change 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 first-quarter 2019 measures were announced today for the nonfinancial corporate sector. 
Productivity decreased 0.4 percent in the first quarter of 2019 and increased 1.3 percent over the last 
four quarters. Unit profits of nonfinancial corporations fell at a 17.9 percent annual rate in the first 
quarter of 2019 and increased 3.7 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. Table B1 presents previous and revised productivity and related measures for 
the business, nonfarm business, and manufacturing sectors for the first quarter of 2019. 

In the first quarter of 2019, nonfarm business productivity rose 3.4 percent, rather than 3.6 percent as 
reported May 2, due solely to a 0.2-percentage point downward revision to output. Unit labor costs 
were revised down and decreased 1.6 percent, as hourly compensation was revised down by more than 
productivity. In the manufacturing sector, productivity was revised down from an increase of 1.7 
percent to an increase of 0.4 percent, due primarily to a 1.0-percentage point downward revision to 
output; hours worked were revised up 0.2 percentage points. Unit labor costs increased 2.0 percent rather 
than the preliminary estimate of 0.8 percent, reflecting the downward revision to productivity; hourly 
compensation increased at the same 2.4 percent rate reported previously.

Table B2 shows previous and revised productivity and related measures for the business, nonfarm 
business, manufacturing, and nonfinancial corporate sectors for the fourth quarter of 2018. 

In the fourth quarter of 2018, labor productivity in the nonfarm business sector increased at the same 
1.3-percent rate reported May 2. Hourly compensation was revised down from the previously reported 
increase of 3.9 percent to a 0.9-percent increase. As a result, unit labor costs decreased 0.4 percent in the 
fourth quarter of 2018, rather than increasing 2.5 percent. Total manufacturing sector productivity 
increased 1.0 percent in the fourth quarter of 2018, a smaller increase than previously reported. Hourly 
compensation was revised down 0.9 percentage point to a 3.4-percent increase; this led to a downward 
revision to unit labor costs, which rose 2.4 percent rather than increasing 3.2 percent.  

In the nonfinancial corporate sector, productivity rose 1.4 percent in the fourth quarter of 2018 rather 
than increasing 3.2 percent as previously reported, due solely to a downward revision to output. Annual 
average productivity in the nonfinancial corporate sector increased 2.0 percent in 2018, rather than the 
preliminary estimate of 2.1 percent. 

Complete quarterly and annual 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 second-quarter 2019 is scheduled to be 
released on Thursday, August 15, 2019 at 8:30 a.m. (EDT).


=========================================================================================================================
Table A1. Labor productivity growth and related measures – revised first-quarter 2019
(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         3.4            3.9       0.5           1.8          0.9          -1.6
                         A year ago               2.4            3.9       1.5           1.5         -0.1          -0.8
Business                 Previous quarter         3.5            3.9       0.4           1.9          1.0          -1.5
                         A year ago               2.4            3.9       1.4           1.6         -0.1          -0.8
Manufacturing            Previous quarter         0.4           -2.0      -2.4           2.4          1.5           2.0
                         A year ago               0.8            1.6       0.7           0.9         -0.8           0.0
Durable manufacturing    Previous quarter        -0.6           -2.8      -2.2           2.1          1.1           2.7      
                         A year ago               1.0            2.4       1.5           0.4         -1.3          -0.6
Nondurable manufacturing Previous quarter         1.6           -1.1      -2.6           3.1          2.2           1.5      
                         A year ago               1.1            0.6      -0.5           1.6          0.0           0.5
=========================================================================================================================


=========================================================================================================================
Table A2. Labor productivity growth and related measures – preliminary first-quarter 2019
(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 corporate Previous quarter           -0.4           1.6       2.0           1.6          0.7          2.0
                       A year ago                  1.3           3.2       1.9           1.4         -0.3          0.1
=========================================================================================================================


=========================================================================================================================
Table B1. Labor productivity growth and related measures – revised and previously published first-quarter 2019
(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                      3.4        3.9       0.5           1.8         0.9         -1.6
                         Previously published         3.6        4.1       0.5           2.6         1.7         -0.9
Business                 Revised                      3.5        3.9       0.4           1.9         1.0         -1.5
                         Previously published         3.7        4.1       0.4           2.8         1.9         -0.8
Manufacturing            Revised                      0.4       -2.0      -2.4           2.4         1.5          2.0
                         Previously published         1.7       -1.0      -2.6           2.4         1.5          0.8
Durable manufacturing    Revised                     -0.6       -2.8      -2.2           2.1         1.1          2.7
                         Previously published         1.4       -0.9      -2.3           2.6         1.7          1.1
Nondurable manufacturing Revised                      1.6       -1.1      -2.6           3.1         2.2          1.5
                         Previously published         2.1       -1.0      -3.0           2.1         1.2          0.0
=========================================================================================================================



=========================================================================================================================
Table B2. Labor productivity growth and related measures – revised and previously published fourth-quarter 2018
(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                      1.3       2.6       1.3        0.9         -0.6            -0.4
                         Previously published         1.3       2.6       1.3        3.9          2.3             2.5
Business                 Revised                      1.2       2.6       1.4        0.7         -0.8            -0.5
                         Previously published         1.2       2.6       1.4        3.6          2.1             2.4
Manufacturing            Revised                      1.0       1.6       0.6        3.4          1.8             2.4
                         Previously published         1.1       1.7       0.6        4.3          2.7             3.2
Durable manufacturing    Revised                      2.0       4.7       2.6        3.0          1.4             0.9
                         Previously published         2.4       5.1       2.6        4.1          2.6             1.7
Nondurable manufacturing Revised                      1.0      -1.6      -2.6        3.7          2.1             2.7
                         Previously published         0.9      -1.7      -2.6        4.0          2.5             3.1
Nonfinancial corporate   Revised                      1.4       2.6       1.2        0.3         -1.2            -1.0
                         Previously published         3.2       4.5       1.2        3.5          2.0             0.3
=========================================================================================================================



					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 77 percent of the value of GDP in 2018. Nonfarm business, 
which excludes farming, accounted for about 76 percent of GDP in 2018.

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 55 percent of the value of GDP in 2018. 
     
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)

2019 I         3.5 r       3.9 r      0.4        1.9 r      1.0 r     -1.5 r      0.7 r     -0.6 r

2018 ANNUAL    1.4         3.4        2.0        2.7 r      0.3 r      1.3 r      3.4 r      2.2  

2018 IV        1.2         2.6        1.4        0.7 r     -0.8 r     -0.5 r      4.4 r      1.6  
     III       1.5         3.9        2.4        3.2        1.2        1.8        0.3        1.1  
     II        3.5         5.1        1.5        0.4       -1.7       -3.0       12.8        3.6  
     I         0.9         2.5        1.5        4.7        1.4        3.7       -0.5        1.9  

2017 ANNUAL    1.1         2.6        1.5        3.4        1.3        2.3        1.0        1.7  

2017 IV       -1.1         2.9        4.0        1.2       -1.9        2.4        3.6        2.9  
     III       2.8         3.5        0.6        5.7        3.5        2.8        0.9        2.0  
     II        1.6         3.7        2.0        1.4        1.0       -0.3        2.3        0.8  
     I        -0.1         1.9        2.0        4.1        1.2        4.2       -1.3        1.8  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2019 I         2.4         3.9        1.4        1.6 r     -0.1 r     -0.8 r      4.4 r      1.4 r

2018 ANNUAL    1.4         3.4        2.0        2.7 r      0.3 r      1.3 r      3.4 r      2.2  

2018 IV        1.8         3.5        1.7        2.2 r      0.0 r      0.5 r      4.1 r      2.1  
     III       1.2         3.6        2.4        2.4       -0.2        1.2        3.9        2.4  
     II        1.5         3.5        1.9        3.0        0.3        1.4        4.1        2.6  
     I         1.1         3.1        2.0        3.2        1.0        2.1        1.6        1.9  

2017 ANNUAL    1.1         2.6        1.5        3.4        1.3        2.3        1.0        1.7  

2017 IV        0.8         3.0        2.2        3.1        0.9        2.3        1.4        1.9  
     III       1.6         2.8        1.2        4.2        2.2        2.6        0.3        1.6  
     II        1.2         2.5        1.2        3.4        1.4        2.1        0.5        1.4  
     I         1.0         2.2        1.2        3.1        0.5        2.1        1.8        2.0  
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2019 I       107.2 r     120.5 r    112.5 r    116.2 r    105.1 r    108.4 r    110.6 r    109.4 r

2018 ANNUAL  105.6       117.9      111.7      115.0 r    105.0 r    108.9 r    108.7 r    108.8  

2018 IV      106.2       119.4      112.4      115.6 r    104.8 r    108.9 r    110.4 r    109.6  
     III     105.9       118.6      112.0      115.4      105.1      109.0      109.3      109.1  
     II      105.5       117.5      111.3      114.5      104.7      108.5      109.2      108.8  
     I       104.6       116.0      110.9      114.4      105.2      109.3      105.9      107.9  

2017 ANNUAL  104.1       114.0      109.5      112.0      104.7      107.5      105.1      106.5  

2017 IV      104.4       115.3      110.5      113.1      104.8      108.3      106.1      107.4  
     III     104.7       114.5      109.4      112.7      105.3      107.7      105.1      106.6  
     II      103.9       113.5      109.2      111.2      104.4      107.0      104.9      106.1  
     I       103.5       112.5      108.7      110.8      104.2      107.1      104.3      105.8  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                       June 6, 2019
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)

2019 I         3.4 r       3.9 r      0.5        1.8 r      0.9 r     -1.6 r      1.0       -0.5 r

2018 ANNUAL    1.3         3.5        2.1        2.6 r      0.2 r      1.2 r      3.6 r      2.2  

2018 IV        1.3         2.6        1.3        0.9 r     -0.6 r     -0.4 r      4.2 r      1.6  
     III       1.9         4.0        2.1        3.5        1.5        1.6        1.1        1.4  
     II        2.9         5.0        2.1        0.0       -2.2       -2.8       12.7        3.6  
     I         0.7         2.6        1.9        4.1        0.9        3.5       -0.4        1.8  

2017 ANNUAL    1.2         2.7        1.5        3.4        1.2        2.2        0.9        1.6  

2017 IV       -0.3         3.0        3.3        2.0       -1.1        2.3        3.7        2.9  
     III       2.3         3.6        1.3        5.1        2.9        2.8        1.1        2.1  
     II        1.7         3.8        2.1        1.4        0.9       -0.3        2.3        0.8  
     I         0.4         1.9        1.5        4.7        1.9        4.2       -2.4        1.3  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2019 I         2.4         3.9        1.5        1.5 r     -0.1 r     -0.8 r      4.6 r      1.5 r

2018 ANNUAL    1.3         3.5        2.1        2.6 r      0.2 r      1.2 r      3.6 r      2.2  

2018 IV        1.7         3.5        1.8        2.1 r     -0.1 r      0.4 r      4.3 r      2.1  
     III       1.3         3.6        2.3        2.4       -0.2        1.1        4.2        2.4  
     II        1.4         3.5        2.1        2.8        0.1        1.4        4.2        2.6  
     I         1.1         3.2        2.2        3.1        0.9        2.1        1.7        1.9  

2017 ANNUAL    1.2         2.7        1.5        3.4        1.2        2.2        0.9        1.6  

2017 IV        1.0         3.1        2.0        3.3        1.1        2.2        1.1        1.8  
     III       1.4         2.9        1.5        4.0        2.0        2.5        0.2        1.5  
     II        1.2         2.6        1.4        3.2        1.3        2.0        0.5        1.4  
     I         1.0         2.2        1.2        3.1        0.5        2.1        1.8        1.9  
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2019 I       107.0 r     120.4 r    112.6 r    116.3 r    105.2 r    108.7 r    111.7 r    110.0 r

2018 ANNUAL  105.4       117.8      111.8      115.1 r    105.0 r    109.2 r    109.7 r    109.4  

2018 IV      106.1       119.3      112.4      115.8 r    105.0 r    109.2 r    111.5 r    110.2  
     III     105.7       118.5      112.1      115.5      105.1      109.3      110.3      109.7  
     II      105.2       117.3      111.5      114.5      104.7      108.8      110.0      109.3  
     I       104.5       115.9      111.0      114.5      105.3      109.6      106.8      108.4  

2017 ANNUAL  104.0       113.8      109.4      112.2      104.9      107.9      105.9      107.0  

2017 IV      104.3       115.2      110.4      113.4      105.1      108.7      106.9      107.9  
     III     104.4       114.3      109.5      112.8      105.4      108.1      105.9      107.1  
     II      103.8       113.3      109.2      111.4      104.6      107.3      105.6      106.6  
     I       103.4       112.3      108.6      111.0      104.4      107.4      105.0      106.4  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                       June 6, 2019
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)

2019 I             0.4 r         -2.0 r         -2.4 r          2.4            1.5            2.0 r

2018 ANNUAL        0.8            2.7            1.9            1.6 r         -0.8 r          0.8 r

2018 IV            1.0 r          1.6 r          0.6            3.4 r          1.8 r          2.4 r
     III           0.6            4.0            3.4            2.8            0.8            2.1  
     II            1.2            2.7            1.4           -5.0           -7.0           -6.2  
     I            -0.1            1.9            2.1            5.4            2.2            5.6  

2017 ANNUAL        1.2            2.2            1.0            3.3            1.2            2.1  

2017 IV            4.2            5.7            1.4            1.2           -1.8           -2.9  
     III          -4.4           -1.5            3.1            2.6            0.4            7.3  
     II            4.0            3.6           -0.4            2.7            2.3           -1.2  
     I             1.2            3.0            1.7            4.7            1.8            3.4  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2019 I             0.8 r          1.6 r          0.7            0.9 r         -0.8 r          0.0 r

2018 ANNUAL        0.8            2.7            1.9            1.6 r         -0.8 r          0.8 r

2018 IV            0.7            2.5 r          1.9            1.6 r         -0.6 r          0.9 r
     III           1.5            3.6            2.1            1.1           -1.5           -0.4  
     II            0.2            2.2            2.0            1.0           -1.6            0.8  
     I             0.8            2.4            1.5            3.0            0.7            2.1  

2017 ANNUAL        1.2            2.2            1.0            3.3            1.2            2.1  

2017 IV            1.2            2.7            1.5            2.8            0.7            1.6  
     III           0.8            1.9            1.2            3.8            1.8            3.0  
     II            2.1            2.8            0.7            3.6            1.6            1.5  
     I             0.7            1.5            0.7            3.2            0.7            2.5  
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2019 I           101.9 r        108.5 r        106.4 r        113.3 r        102.5 r        111.2 r

2018 ANNUAL      101.5 r        108.0 r        106.4          111.9 r        102.2 r        110.3 r

2018 IV          101.8 r        109.0 r        107.1          112.7 r        102.2 r        110.6 r
     III         101.6          108.6          106.9          111.7          101.7          110.0  
     II          101.4          107.5          106.0          111.0          101.5          109.4  
     I           101.1          106.8          105.7          112.4          103.3          111.1  

2017 ANNUAL      100.7          105.2          104.5          110.1          103.0          109.4  

2017 IV          101.2          106.3          105.1          110.9          102.8          109.6  
     III         100.1          104.9          104.7          110.6          103.3          110.4  
     II          101.3          105.3          103.9          109.9          103.2          108.5  
     I           100.3          104.3          104.0          109.1          102.6          108.8  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                       June 6, 2019
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)

2019 I            -0.6 r         -2.8 r         -2.2 r          2.1 r          1.1 r          2.7 r

2018 ANNUAL        1.2            3.4            2.2            2.0 r         -0.4            0.8  

2018 IV            2.0 r          4.7 r          2.6            3.0 r          1.4 r          0.9 r
     III           1.9            5.8            3.8            1.5           -0.5           -0.4  
     II            0.4            2.2            1.7           -4.9           -6.9           -5.3  
     I             0.4            3.9            3.5            6.4            3.1            5.9  

2017 ANNUAL        1.7            2.3            0.6            4.1            1.9            2.3  

2017 IV            4.3            5.3            1.0            1.7           -1.4           -2.5  
     III          -3.9           -1.3            2.6            2.4            0.3            6.5  
     II            5.4            2.8           -2.5            6.2            5.8            0.8  
     I             1.0            3.9            2.9            4.0            1.2            3.0  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2019 I             1.0 r          2.4 r          1.5 r          0.4 r         -1.3 r         -0.6 r

2018 ANNUAL        1.2            3.4            2.2            2.0 r         -0.4            0.8  

2018 IV            1.2 r          4.1 r          2.9            1.4 r         -0.8 r          0.2 r
     III           1.8            4.3            2.5            1.1           -1.5           -0.6  
     II            0.3            2.5            2.2            1.3           -1.3            1.0  
     I             1.5            2.6            1.1            4.2            1.9            2.6  

2017 ANNUAL        1.7            2.3            0.6            4.1            1.9            2.3  

2017 IV            1.6            2.6            1.0            3.6            1.4            1.9  
     III           1.2            1.9            0.8            4.7            2.6            3.5  
     II            2.8            3.0            0.2            4.6            2.6            1.8  
     I             1.3            1.8            0.5            3.5            1.0            2.2  
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2019 I           102.7 r        109.8 r        106.9 r        113.9 r        103.0 r        110.9 r

2018 ANNUAL      102.2 r        108.7 r        106.4          112.8 r        103.0 r        110.4 r

2018 IV          102.8 r        110.6 r        107.5          113.3 r        102.7 r        110.2 r
     III         102.3          109.3          106.8          112.5          102.4          110.0  
     II          101.8          107.7          105.8          112.1          102.5          110.1  
     I           101.7          107.2          105.4          113.5          104.3          111.6  

2017 ANNUAL      101.0          105.1          104.1          110.6          103.4          109.6  

2017 IV          101.6          106.1          104.5          111.7          103.5          110.0  
     III         100.5          104.8          104.2          111.3          103.9          110.7  
     II          101.5          105.1          103.6          110.6          103.8          108.9  
     I           100.2          104.4          104.2          108.9          102.4          108.7  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                       June 6, 2019
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)

2019 I             1.6 r         -1.1 r         -2.6 r          3.1 r          2.2 r          1.5 r

2018 ANNUAL        0.6            1.9            1.3            0.9           -1.5            0.3 r

2018 IV            1.0 r         -1.6 r         -2.6            3.7 r          2.1 r          2.7 r
     III          -0.4            2.2            2.6            5.4            3.3            5.8  
     II            2.3            3.1            0.8           -5.3           -7.3           -7.5  
     I             0.1           -0.1           -0.3            3.3            0.0            3.1  

2017 ANNUAL        0.2            1.9            1.7            2.0           -0.1            1.8  

2017 IV            3.9            6.2            2.2            0.5           -2.6           -3.3  
     III          -5.3           -1.6            3.9            3.0            0.9            8.8  
     II            1.1            4.4            3.3           -3.3           -3.7           -4.4  
     I             2.3            2.0           -0.3            5.7            2.9            3.4  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2019 I             1.1 r          0.6           -0.5 r          1.6 r          0.0 r          0.5 r

2018 ANNUAL        0.6            1.9            1.3            0.9           -1.5            0.3 r

2018 IV            0.8 r          0.9 r          0.1            1.7           -0.6 r          0.9 r
     III           1.5            2.8            1.3            0.9           -1.7           -0.6  
     II            0.2            1.8            1.6            0.3           -2.3            0.1  
     I            -0.1            2.2            2.3            0.8           -1.4            0.9  

2017 ANNUAL        0.2            1.9            1.7            2.0           -0.1            1.8  

2017 IV            0.4            2.7            2.3            1.4           -0.7            1.0  
     III           0.1            1.9            1.8            2.2            0.2            2.2  
     II            0.8            2.4            1.5            1.7           -0.2            0.9  
     I            -0.4            0.9            1.2            2.8            0.2            3.1  
---------------------------------------------------------------------------------------------------
                                         Indexes 2012=100

2019 I           102.4 r        108.1 r        105.6 r        112.2 r        101.5 r        109.6 r

2018 ANNUAL      101.7 r        108.2 r        106.4          110.3 r        100.6 r        108.4 r

2018 IV          102.0 r        108.4 r        106.3          111.3 r        101.0 r        109.2 r
     III         101.7          108.8          107.0          110.3          100.4          108.5  
     II          101.8          108.2          106.3          108.9           99.6          107.0  
     I           101.2          107.4          106.1          110.4          101.5          109.1  

2017 ANNUAL      101.1          106.2          105.0          109.2          102.1          108.1  

2017 IV          101.2          107.4          106.2          109.5          101.5          108.2  
     III         100.2          105.8          105.6          109.4          102.2          109.1  
     II          101.6          106.3          104.6          108.6          102.0          106.9  
     I           101.3          105.1          103.7          109.5          102.9          108.1  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                       June 6, 2019
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)

2019 I        -0.4       1.6      2.0       1.6       0.7       2.0      3.0      2.3    -17.9     -0.6  

2018 ANNUAL    2.0 r     4.1 r    2.1       2.1 r    -0.4 r     0.1      0.1 r    0.1      6.3 r    0.9  

2018 IV        1.4 r     2.6 r    1.2       0.3 r    -1.2 r    -1.0 r    3.7 r    0.5 r    1.3 r    0.6  
     III       6.2       7.7      1.4       3.7       1.6      -2.3     -3.0     -2.6     18.9      0.0  
     II       -2.0       0.8      2.8      -0.1      -2.2       1.9      2.7      2.2     17.1      4.0  
     I         3.4       5.3      1.8       4.8       1.5       1.4     -1.0      0.6      5.5      1.2  

2017 ANNUAL    1.7       3.4      1.7       3.2       1.0       1.5      1.0      1.3     -2.1      0.9  

2017 IV        1.4       4.2      2.7       0.3      -2.7      -1.1      0.5     -0.6      7.8      0.4  
     III       1.1       2.5      1.4       2.8       0.7       1.7      0.6      1.3    -17.1     -1.2  
     II        4.6       7.4      2.7       0.0      -0.4      -4.4     -2.4     -3.7      7.5     -2.4  
     I         3.1       5.0      1.8       8.1       5.2       4.9      0.0      3.2     10.6      4.1  
---------------------------------------------------------------------------------------------------------
                       Percent change from corresponding quarter of previous year

2019 I         1.3       3.2      1.9       1.4      -0.3       0.1      1.6      0.6      3.7      1.0  

2018 ANNUAL    2.0 r     4.1 r    2.1       2.1 r    -0.4 r     0.1      0.1 r    0.1      6.3 r    0.9  

2018 IV        2.2 r     4.1 r    1.8       2.1 r    -0.1 r     0.0 r    0.5 r    0.2     10.5 r    1.4  
     III       2.2       4.4      2.2       2.2      -0.5       0.0     -0.2     -0.1     12.2      1.4  
     II        1.0       3.2      2.2       1.9      -0.7       1.0      0.7      0.9      2.5      1.1  
     I         2.6       4.8      2.2       2.0      -0.3      -0.6     -0.6     -0.6      0.3     -0.5  

2017 ANNUAL    1.7       3.4      1.7       3.2       1.0       1.5      1.0      1.3     -2.1      0.9  

2017 IV        2.6       4.8      2.1       2.8       0.6       0.2     -0.3      0.0      1.5      0.2  
     III       1.6       3.2      1.6       3.6       1.5       1.9      1.4      1.8     -2.7      1.2  
     II        2.5       4.2      1.7       3.2       1.2       0.7      0.3      0.6      0.5      0.6  
     I         0.1       1.4      1.3       3.3       0.7       3.2      2.5      3.0     -7.1      1.6  
---------------------------------------------------------------------------------------------------------
                                            Indexes 2012=100

2019 I       106.7     121.7    114.1     115.1     104.1     107.9    105.4    107.1     95.4    105.4  

2018 ANNUAL  105.8 r   119.5 r  112.9     114.1 r   104.1 r   107.8 r  104.2 r  106.6 r   96.9 r  105.2  

2018 IV      106.8 r   121.2 r  113.5     114.7 r   104.0 r   107.4 r  104.7 r  106.5 r  100.2 r  105.6 r
     III     106.4     120.4    113.2     114.6     104.3     107.7    103.7    106.4     99.9    105.4  
     II      104.8     118.2    112.8     113.5     103.8     108.3    104.5    107.1     95.6    105.4  
     I       105.3     118.0    112.0     113.6     104.4     107.8    103.8    106.5     91.9    104.4  

2017 ANNUAL  103.8     114.7    110.6     111.8     104.5     107.7    104.1    106.5     91.2    104.3  

2017 IV      104.5     116.5    111.5     112.2     104.0     107.4    104.1    106.3     90.7    104.1  
     III     104.1     115.3    110.7     112.1     104.8     107.7    104.0    106.5     89.0    104.0  
     II      103.8     114.6    110.4     111.4     104.6     107.3    103.8    106.1     93.3    104.3  
     I       102.7     112.6    109.6     111.4     104.7     108.5    104.4    107.1     91.6    104.9  
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                             June 6, 2019
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 fourth 
quarter of 2018.

					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 1978-2018 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: June 06, 2019