Transmission of material in this release is embargoed until USDL 17-0767
8:30 a.m. (EDT) Monday, June 5, 2017
Technical information: (202) 691-5606 dprweb@bls.gov www.bls.gov/lpc
Media contact: (202) 691-5902 PressOffice@bls.gov
PRODUCTIVITY AND COSTS
First Quarter 2017, Revised
Nonfarm business sector labor productivity was unchanged during the first
quarter of 2017, the U.S. Bureau of Labor Statistics reported today, as both
output and hours worked increased 1.7 percent. (All quarterly percent changes
in this release are seasonally adjusted annual rates.) From the first quarter
of 2016 to the first quarter of 2017, productivity increased 1.2 percent,
reflecting a 2.5-percent increase in output and a 1.3-percent increase in
hours worked. (See table A1.)
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. Measures released today were based on
more recent source data than were available for the preliminary report.
Unit labor costs in the nonfarm business sector increased 2.2 percent in the
first quarter of 2017, reflecting a 2.2-percent increase in hourly
compensation; productivity was unchanged. Unit labor costs increased 1.1
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 0.5 percent in the first
quarter of 2017, as output increased 2.6 percent and hours worked increased
2.1 percent. Output per hour decreased 0.7 percent in the durable goods
manufacturing sector and increased 2.7 percent in the nondurable goods
sector. Over the last four quarters, manufacturing sector productivity
increased 0.3 percent, as output increased 0.9 percent and hours worked
increased 0.6 percent. (See tables A1, 3, 4 and 5.) Unit labor costs in
manufacturing increased 2.4 percent in the first quarter of 2017 and rose 2.9
percent from the same quarter a year ago.
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 2017 measures were announced today for the
nonfinancial corporate sector. Productivity decreased 1.5 percent in the
first quarter of 2017 and decreased 0.1 percent over the last four quarters.
Unit profits of nonfinancial corporations fell at a 6.6 percent annual rate
in the first quarter of 2017 and fell 6.8 percent over the last four
quarters. (See tables A2 and 6.)
Revised measures
Table B1 presents previous and revised productivity and related measures
for the business, nonfarm business, and manufacturing sectors for the
first quarter of 2017.
In the first quarter of 2017, nonfarm business productivity was unchanged,
rather than falling 0.6 percent as reported May 4, due to a 0.7-percentage
point upward revision to output; hours worked were revised up 0.1
percentage point. Unit labor costs were revised down--due primarily to the
upward revision to productivity--and increased 2.2 percent. In the
manufacturing sector, productivity was revised up 0.1 percentage point and
hourly compensation was revised up 0.4 percentage point, resulting in a 0.3-
percentage point upward revision to unit labor costs.
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 2016.
In the fourth quarter of 2016, labor productivity in the business, nonfarm
business, and manufacturing sectors increased at the same rates reported May
4. In the nonfarm business sector, hourly compensation was revised down, and
decreased 3.0 percent, in contrast to the previously published estimate of a
3.1 percent increase. As a result, unit labor costs fell 4.6 percent in the
fourth quarter of 2016, rather than increasing 1.3 percent. In the
manufacturing sector, a downward revision to hourly compensation also led
directly to a downward revision to unit labor costs, which declined 3.4
percent in the fourth quarter of 2016 rather than increasing 2.2 percent as
previously published.
In the nonfinancial corporate sector, productivity fell 4.2 percent in the
fourth quarter of 2016 rather than declining 1.0 percent as previously
reported, due solely to a downward revision to output. Annual average
productivity increased 0.4 percent from 2015 to 2016, slightly less than the
0.6-percent increase reported May 4. Unit profits of nonfinancial
corporations fell 15.2 percent in the fourth quarter of 2016, rather than the
decline of 17.9 percent reported May 4. (See table 6.)
Complete annual and quarterly data series can be found on the Productivity
and Costs home page: www.bls.gov/lpc/#data.
______________
The preliminary Productivity and Costs news release for second-quarter 2017
is scheduled to be released on Wednesday, August 9, 2017 at 8:30 a.m. (EDT).
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Table A1. Labor productivity growth and related measures - revised first-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 0.0 1.7 1.7 2.2 -0.9 2.2
A year ago 1.2 2.5 1.3 2.3 -0.3 1.1
Business Previous quarter -1.0 1.1 2.2 1.6 -1.5 2.7
A year ago 1.2 2.4 1.2 2.3 -0.3 1.1
Manufacturing Previous quarter 0.5 2.6 2.1 2.9 -0.3 2.4
A year ago 0.3 0.9 0.6 3.2 0.6 2.9
Durable Previous quarter -0.7 2.9 3.6 1.7 -1.4 2.4
manufacturing A year ago 0.9 1.5 0.6 3.6 0.9 2.6
Nondurable Previous quarter 2.7 2.3 -0.4 4.9 1.7 2.1
manufacturing A year ago -0.5 0.2 0.7 2.5 -0.1 3.0
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Table A2. Labor productivity growth and related measures - preliminary first-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
-------------------------------------------------------------------------------------------------------------------------
Nonfinancial Previous quarter -1.5 0.5 2.0 1.9 -1.2 3.4
corporate A year ago -0.1 1.2 1.4 2.4 -0.2 2.5
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Table B1. Labor productivity growth and related measures - revised and previously published first-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 0.0 1.7 1.7 2.2 -0.9 2.2
Previously published -0.6 1.0 1.6 2.4 -0.8 3.0
Business Revised -1.0 1.1 2.2 1.6 -1.5 2.7
Previously published -1.5 0.5 2.1 1.8 -1.3 3.4
Manufacturing Revised 0.5 2.6 2.1 2.9 -0.3 2.4
Previously published 0.4 2.8 2.4 2.5 -0.6 2.1
Durable Revised -0.7 2.9 3.6 1.7 -1.4 2.4
manufacturing Previously published -1.1 2.8 4.0 1.4 -1.7 2.5
Nondurable Revised 2.7 2.3 -0.4 4.9 1.7 2.1
manufacturing Previously published 3.2 2.8 -0.4 4.6 1.4 1.3
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Table B2. Labor productivity growth and related measures - revised and previously published fourth-quarter 2016
(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 1.8 2.7 1.0 -3.0 -5.8 -4.6
Previously published 1.8 2.7 1.0 3.1 0.0 1.3
Business Revised 2.4 2.6 0.2 -2.1 -5.0 -4.4
Previously published 2.4 2.6 0.2 4.0 0.9 1.5
Manufacturing Revised 2.0 1.8 -0.2 -1.5 -4.4 -3.4
Previously published 2.0 1.8 -0.2 4.2 1.2 2.2
Durable Revised 1.8 2.0 0.2 -1.3 -4.2 -3.1
manufacturing Previously published 1.8 2.0 0.2 4.0 0.9 2.1
Nondurable Revised 2.3 1.5 -0.8 -2.1 -5.0 -4.3
manufacturing Previously published 2.3 1.5 -0.8 4.6 1.5 2.3
Nonfinancial Revised -4.2 -3.5 0.6 -2.2 -5.1 2.0
corporate Previously published -1.0 -0.3 0.6 3.3 0.2 4.3
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