Department of Labor Logo United States Department of Labor
Dot gov

The .gov means it's official.
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you're on a federal government site.


The site is secure.
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

Drop in unit labor costs in manufacturing last year

February 12, 2003

Unit labor costs in manufacturing fell in 2002, by 0.7 percent. This was the first annual drop in unit labor costs since 1999.

Percent change in unit labor costs, manufacturing, 1993-2002
[Chart data—TXT]

The drop in unit labor costs in 2002 was the result of a 3.8-percent increase in hourly compensation and a 4.6-percent increase in labor productivity.

Unit labor costs in durable goods manufacturing declined 1.5 percent in 2002. In contrast, there was with a 0.6-percent rise in unit labor costs in nondurable goods manufacturing.

Unit labor costs—the cost of the labor input required to produce one unit of output—are computed by dividing labor costs in nominal terms by real output. Unit labor costs can also be expressed as the ratio of hourly compensation to labor productivity.

These data are a product of the BLS Productivity and Costs program. Data are subject to revision. Additional information is available in "Productivity and Costs, Fourth Quarter 2002" (PDF) (TXT), news release USDL 03-45.


Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, Drop in unit labor costs in manufacturing last year at (visited July 21, 2024).

Recent editions of Spotlight on Statistics