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Labor productivity rose in 14 of 29 selected service-providing industries in 2019, compared to 2018 when labor productivity increased in 21 of 29 industries. Unit labor costs declined in 5 industries in 2019. Each of the industries with a decline in unit labor costs also recorded an increase in productivity.
Industry | Labor productivity | Unit labor costs | 2019 employment |
---|---|---|---|
Wireless telecommunications carriers |
13.2% | -0.5% | 106,900 |
Gambling industries |
8.8 | -5.3 | 124,200 |
Periodical publishers |
5.9 | -6.7 | 90,200 |
Warehousing and storage |
5.6 | 2.6 | 1,197,700 |
Wired telecommunications carriers |
5.5 | 2.1 | 523,600 |
Line-haul railroads |
5.3 | -1.9 | 158,800 |
Software publishers |
4.8 | -1.1 | 461,100 |
Automotive repair and maintenance |
3.7 | 0.6 | 1,165,000 |
Air transportation |
2.5 | 3.5 | 492,500 |
Commercial banking |
2.5 | 0.8 | 1,391,200 |
Newspaper publishers |
1.5 | 5.9 | 144,400 |
Power generation and supply |
1.1 | 5.2 | 385,500 |
Radio and television broadcasting |
0.6 | 4.4 | 222,800 |
Restaurants and other eating places |
0.3 | 3.9 | 11,008,100 |
Travel arrangement and reservation services |
0.0 | 6.4 | 248,800 |
Amusement parks and arcades |
-0.7 | 4.6 | 229,300 |
Medical and diagnostic laboratories |
-1.2 | 6.9 | 299,300 |
Accounting and bookkeeping services |
-1.8 | 4.5 | 1,191,600 |
Natural gas distribution |
-2.2 | 3.2 | 110,300 |
Engineering services |
-2.3 | 3.4 | 1,044,300 |
Cable and other subscription programming |
-2.4 | 5.4 | 54,900 |
Postal service |
-2.7 | 11.4 | 607,300 |
Drycleaning and laundry services |
-3.4 | 3.4 | 306,000 |
Water, sewage and other systems |
-3.7 | 8.1 | 53,200 |
General freight trucking, long-distance |
-5.5 | 9.8 | 930,400 |
Truck, trailer, and RV rental and leasing |
-5.7 | 10.4 | 91,800 |
Specialized freight trucking |
-6.0 | 10.2 | 491,400 |
Couriers and messengers |
-10.8 | 13.2 | 872,500 |
General freight trucking, local |
-11.2 | 18.4 | 343,900 |
From 2018 to 2019, the largest declines in unit labor costs were in periodical publishers (−6.7 percent) and gambling industries (−5.3 percent). Each of the industries where productivity fell also recorded an increase in unit labor costs. The largest increases in unit labor costs were in general freight, local (18.4 percent) and couriers and messengers (13.2 percent), where labor productivity decreased by 11.2 percent and 10.8 percent, respectively.
These data are from the Labor Productivity and Costs program. Unit labor costs represent the cost of labor required to produce one unit of output. The unit labor cost indexes are computed by dividing an index of nominal industry labor compensation by an index of real industry output. Unit labor costs also describe the relationship between compensation per hour and real output per hour (labor productivity). Increases in hourly compensation increase unit labor costs; increases in labor productivity offset compensation increases and reduce unit labor costs. To learn more, see "Productivity and Costs by Industry: Selected Service-Providing Industries — 2019." We also have more charts on productivity and costs in service-providing industries.
Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, Unit labor costs decreased in 5 of 29 selected service-providing industries in 2019 at https://www.bls.gov/opub/ted/2020/unit-labor-costs-decreased-in-5-of-29-selected-service-providing-industries-in-2019.htm (visited December 06, 2024).