Transmission of material in this release is embargoed until USDL 23-0150 

8:30 a.m. (ET) Thursday, February 2, 2023 

Technical information: (202) 691-5606 • Productivity@bls.gov • www.bls.gov/productivity 

Media contact: (202) 691-5902 • PressOffice@bls.gov

PRODUCTIVITY AND COSTS 

Fourth Quarter and Annual Averages 2022, Preliminary

Nonfarm business sector labor productivity increased 3.0 percent in the fourth quarter of 2022, the 

U.S. Bureau of Labor Statistics reported today, as output increased 3.5 percent and hours worked 

increased 0.5 percent. (All quarterly percent changes in this release are seasonally adjusted annual rates.) 

From the same quarter a year ago, nonfarm business sector labor productivity decreased 1.5 percent, 

reflecting a 0.8-percent increase in output and a 2.3-percent increase in hours worked. (See chart 1 and 

table A1.) Annual average productivity decreased 1.3 percent from 2021 to 2022. This is the largest 

annual decline in the measure since 1974, when productivity decreased 1.7 percent. (See table C1.) 

Unit labor costs in the nonfarm business sector increased 1.1 percent in the fourth quarter of 2022, 

reflecting a 4.1-percent increase in hourly compensation and a 3.0-percent increase in productivity. Unit 

labor costs increased 4.5 percent over the last four quarters. (See chart 2 and 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 productivity tend to reduce them. 

Real hourly compensation, which takes into account consumer prices, increased 1.0 percent in the fourth

quarter, and declined 3.8 percent over the last four quarters. 

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. The fourth 

Chart 1. Labor productivity, nonfarm business, 2018Q1 – 2022Q4

-14.0

-12.0

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

2018 2019 2020 2021 2022

From previous quarter, annual rate

From same quarter a year ago

Percent change Percent change

Chart 2. Unit labor costs, nonfarm business, 2018Q1 – 2022Q4

-14.0

-12.0

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

2018 2019 2020 2021 2022

From previous quarter, annual rate

From same quarter a year ago
 -2-

quarter of 2022 is the second consecutive quarter in which both output and labor productivity increased, 

following decreases in the first two quarters of the year. Hours worked grew in all four quarters of 2022, 

but slower growth in the fourth quarter contributed to the acceleration in productivity growth in that 

quarter. The labor productivity index has grown at an annualized rate of 1.7 percent since the last 

business cycle peak in the fourth quarter of 2019—the last quarter before the COVID-19 pandemic and 

ensuing recession—reflecting a 2.1-percent rate of growth in output and a 0.4-percent rate of growth in 

hours worked over that three-year period. (See chart 3.)

Manufacturing sector labor productivity decreased 1.5 percent in the fourth quarter of 2022, as output 

decreased 2.6 percent and hours worked decreased 1.1 percent. In the durable manufacturing sector, 

productivity decreased 1.7 percent, with a 2.9-percent decrease in output and a 1.2-percent decrease in 

hours worked. Nondurable manufacturing sector productivity decreased 1.4 percent, as output decreased 

2.3 percent and hours worked decreased 0.9 percent. Total manufacturing sector productivity decreased 

1.5 percent from the same quarter a year ago. (See chart 3 and tables A1, 3, 4, and 5.) 

Unit labor costs in the total manufacturing sector increased 4.8 percent in the fourth quarter of 2022, 

reflecting a 3.2-percent increase in hourly compensation and a 1.5-percent decrease in productivity. 

Manufacturing unit labor costs increased 4.3 percent from the same quarter a year ago. (See chart 4 and 

tables A1 and 3.) 

84

86

88

90

92

94

96

98

100

102

104

106

108

2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1 2022 Q2 2022 Q3 2022 Q4

Output Hours Worked Labor Productivity

Chart 3. Labor Productivity, Output, and Hours Worked index series, nonfarm business, 2019 Q4 – 2022 Q4

Index (2019 Q4=100)
 -3-

Manufacturing sector labor productivity declined in 5 of the last 6 quarters. In the third and fourth 

quarters of 2022, output also declined; productivity decreased in the other three quarters because hours 

worked increased faster than output. The total manufacturing labor productivity index has grown at an 

annualized rate of 0.8 percent in the current business cycle since the fourth quarter of 2019, reflecting a 

0.9-percent rate of growth in output and a 0.1-percent rate of growth in hours worked. (See chart 4.)

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. (See page 7.) 

Revised measures

Revised and previously published measures for the third quarter of 2022 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 2022, nonfarm business productivity was revised up 0.6 percentage point, to an 

increase of 1.4 percent. (See table B1.) Unit labor costs increased 2.0 percent in the third quarter, rather 

than increasing 2.4 percent as previously reported. 

In the manufacturing sector, productivity in the third quarter of 2022 was revised down 0.6 percentage 

point, to a decrease of 3.5 percent. Manufacturing unit labor costs increased 6.5 percent, a 0.7-

percentage point upward revision from the previous estimate.

In the nonfinancial corporate sector, productivity was revised up 0.2 percentage point in the third 

quarter of 2022 to a decrease of 1.6 percent. This revision reflects a 0.1-percentage point upward 

revision to output to an increase of 1.9 percent. Hours worked were revised down 0.2 percentage point to 

an increase of 3.5 percent. (See table A2.)

84

86

88

90

92

94

96

98

100

102

104

106

2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1 2022 Q2 2022 Q3 2022 Q4

Output Hours Worked Labor Productivity

Chart 4. Labor Productivity, Output, and Hours Worked index series, manufacturing, 2019 Q4 – 2022 Q4
 -4-

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 decreased 1.3 percent in 

2022, as output increased 2.3 percent and hours worked increased 3.7 percent. This is the largest annual 

decline in productivity since 1974, when productivity decreased 1.7 percent, and is the second-largest 

annual decline in the series, which begins in 1948.

Unit labor costs in the nonfarm business sector increased 5.7 percent in 2022, reflecting an increase of 

4.4 percent in hourly compensation and a decline of 1.3 percent in productivity. This is the largest 

annual increase in unit labor costs since an 8.2-percent increase in 1982. Real hourly compensation, 

which takes into account changes in consumer prices, decreased 3.4 percent in 2022. This is the largest 

decline in the series, which begins in 1948. Consumer prices grew 8.0 percent in 2022, which was the 

highest annual growth rate since a 9.4-percent increase in 1981. 

In the manufacturing sector, productivity decreased 0.9 percent in 2022, reflecting an increase in 

output of 3.2 percent and an increase in hours of 4.2 percent. The increase in hours was the largest in the 

series, which begins in 1988. 

Manufacturing unit labor costs increased 4.3 percent in 2022. Manufacturing real hourly compensation 

decreased 4.3 percent, as hourly compensation increased 3.4 percent while consumer prices increased 

8.0 percent. The decrease in real hourly compensation was the largest in the series, which begins in 

1988. 

Quarterly and annual data, where available, for all sectors from 2020 to 2022 appear in tables 1-6. Full 

historical measures can be found on the Productivity and Costs home page: 

www.bls.gov/productivity/tables/. 

______________ 

The revised Productivity and Costs news release for fourth-quarter and annual averages 2022 is 

scheduled to be released on Thursday, March 2, 2023, at 8:30 a.m. (ET). 

Upcoming Revisions 

Data in this release do not reflect the annual benchmark revision of the BLS Current Employment 

Statistics program data to be released February 3, 2023. This benchmark will be incorporated in the next 

release on March 2, 2023. 
-5-

Table A1. Labor productivity growth and related measures - preliminary fourth-quarter 2022

(percent change from previous quarter at annual rate and from same quarter a year ago)

Sector Percent change from:

Labor 

productivity Output

Hours 

worked

Hourly 

compensation

Real hourly 

compensation

Unit labor 

costs

Nonfarm business Previous quarter 3.0 3.5 0.5 4.1 1.0 1.1

A year ago -1.5 0.8 2.3 3.0 -3.8 4.5

Business Previous quarter 3.2 3.3 0.1 4.5 1.4 1.3

A year ago -1.4 0.7 2.2 3.1 -3.7 4.6

Manufacturing Previous quarter -1.5 -2.6 -1.1 3.2 0.1 4.8

A year ago -1.5 1.0 2.5 2.7 -4.1 4.3

Durable 

manufacturing

Previous quarter -1.7 -2.9 -1.2 2.4 -0.8 4.1

A year ago -1.5 2.3 3.8 2.1 -4.6 3.6

Nondurable 

manufacturing

Previous quarter -1.4 -2.3 -0.9 5.0 1.8 6.5

A year ago -0.8 -0.3 0.5 3.5 -3.3 4.3

Table A2. Labor productivity growth and related measures - revised and previously published third-quarter 2022

(percent change from previous quarter at annual rate)

Sector

Labor 

productivity Output

Hours 

worked

Hourly 

compensation

Real hourly 

compensation

Unit labor 

costs

Nonfinancial 

corporate

Revised -1.6 1.9 3.5 3.6 -2.0 5.3

Previously published -1.8 1.8 3.7 3.5 -2.1 5.3

Table B1. Labor productivity growth and related measures - revised and previously published third-quarter 2022

(percent change from previous quarter at annual rate)

Sector

Labor 

productivity Output

Hours 

worked

Hourly 

compensation

Real hourly 

compensation

Unit labor 

costs

Nonfarm business Revised 1.4 3.6 2.3 3.4 -2.2 2.0

Previously published 0.8 3.3 2.5 3.2 -2.3 2.4

Business Revised 1.1 3.5 2.4 3.2 -2.3 2.0

Previously published 0.5 3.1 2.6 3.1 -2.5 2.6

Manufacturing Revised -3.5 -0.2 3.5 2.7 -2.8 6.5

Previously published -2.9 0.6 3.6 2.7 -2.9 5.8

Durable 

manufacturing

Revised -5.0 1.7 7.0 2.2 -3.3 7.5

Previously published -5.0 1.7 7.1 2.2 -3.3 7.5

Nondurable 

manufacturing

Revised -0.1 -2.1 -2.1 2.9 -2.7 2.9

Previously published 1.3 -0.7 -1.9 2.8 -2.8 1.5
-6-

Table C1. Labor productivity growth and related measures - annual average changes: 2018-2022

Sector Year

Labor 

productivity Output

Hours 

worked

Hourly 

compensation

Real hourly 

compensation

Unit labor 

costs

Nonfarm business 2022 -1.3 2.3 3.7 4.4 -3.4 5.7

2021 2.4 7.8 5.3 4.9 0.2 2.4

2020 4.4 -3.5 -7.6 8.1 6.8 3.6

2019 2.0 2.7 0.7 3.8 2.0 1.8

2018 1.4 3.5 2.0 3.4 0.9 1.9

Manufacturing 2022 -0.9 3.2 4.2 3.4 -4.3 4.3

2021 2.7 5.8 3.1 2.7 -1.8 0.1

2020 0.8 -6.6 -7.4 7.0 5.7 6.1

2019 -2.4 -2.3 0.2 2.4 0.5 4.9

2018 0.2 2.0 1.8 2.3 -0.1 2.1
-7-

TECHNICAL NOTES

Labor Hours

Hours worked 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 and hours paid to wage and 

salary workers in nonfarm establishments, counting a person who is employed by two or more 

establishments at each place of employment. Hours of paid time off are removed from hours paid 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, hours of paid time off 

are removed using a combination of NCS and Hours at Work survey data. Off-the-clock hours are 

added, yielding hours worked, using data from the Current Population Survey (CPS). 

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. 

Detailed hours data are presented in the table “Hours Worked in Total U.S. Economy and Subsectors” 

on the BLS website (www.bls.gov/productivity/tables/total-economy-hours-employment.xlsx).

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

households (including owner-occupied housing). Corresponding exclusions also are made in labor hours 

worked. Business output accounted for about 77 percent of the value of GDP in 2021. Nonfarm 

business, which excludes farming, accounted for about 76 percent of GDP in 2021.

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 intrasectoral

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; 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 

51 percent of the value of GDP in 2021.
-8-

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 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 the Handbook of Methods at 

www.bls.gov/opub/hom/msp/home.htm.

If you are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access 

telecommunications relay services.
-9-

 

Table 1. Business sector: Labor productivity, hourly compensation, unit labor costs, and prices,

seasonally adjusted.

 Value-

 Real added

 Hourly hourly Unit output

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)

2022 ANNUAL -1.3 2.2 3.6 4.5 -3.2 5.8 9.3 7.3 

2022 IV 3.2 3.3 0.1 4.5 1.4 1.3 5.3 3.0 

 III 1.1 r 3.5 r 2.4 r 3.2 r -2.3 r 2.0 r 6.2 r 3.8 r

 II -3.8 -1.4 2.5 2.7 -7.1 6.8 15.3 10.4 

 I -6.0 -2.4 3.8 2.0 -6.6 8.6 8.5 8.5 

2021 ANNUAL 2.4 7.7 5.1 5.0 0.3 2.6 8.3 4.9 

2021 IV 4.5 9.0 4.4 8.4 0.4 3.8 12.2 7.3 

 III -2.1 2.6 4.8 7.1 0.4 9.4 2.7 6.5 

 II 2.9 8.7 5.7 7.6 -0.5 4.6 11.0 7.3 

 I 2.9 8.1 5.0 -1.1 -5.0 -4.0 22.5 6.3 

2020 ANNUAL 4.3 -3.4 -7.4 8.0 6.7 3.5 -3.8 0.4 

2020 IV -4.5 5.3 10.2 8.8 6.4 13.8 -11.6 2.4 

 III 8.3 47.1 35.9 -4.6 -9.0 -11.9 33.3 4.6 

 II 16.6 -35.1 -44.3 24.9 29.2 7.2 -19.2 -4.5 

 I -0.9 -6.3 -5.5 9.7 8.3 10.7 -12.2 0.3 

---------------------------------------------------------------------------------------------------

 Percent change from corresponding quarter of previous year

2022 ANNUAL -1.3 2.2 3.6 4.5 -3.2 5.8 9.3 7.3 

2022 IV -1.4 0.7 2.2 3.1 -3.7 4.6 8.8 6.4 

 III -1.2 r 2.1 r 3.3 4.0 -3.9 r 5.3 r 10.5 r 7.5 r

 II -2.0 1.8 3.9 5.0 -3.3 7.1 9.6 8.2 

 I -0.3 4.4 4.7 6.2 -1.6 6.6 8.5 7.4 

2021 ANNUAL 2.4 7.7 5.1 5.0 0.3 2.6 8.3 4.9 

2021 IV 2.0 7.1 5.0 5.4 -1.2 3.3 11.9 6.8 

 III -0.3 6.1 6.4 5.5 0.2 5.8 5.4 5.6 

 II 2.3 16.1 13.5 2.5 -2.2 0.2 12.5 5.1 

 I 5.5 2.1 -3.3 6.4 4.4 0.8 3.9 2.1 

2020 ANNUAL 4.3 -3.4 -7.4 8.0 6.7 3.5 -3.8 0.4 

2020 IV 4.6 -1.5 -5.8 9.2 7.9 4.5 -4.4 0.6 

 III 6.4 -2.3 -8.2 8.7 7.3 2.1 -2.1 0.3 

 II 4.8 -10.4 -14.5 10.1 9.6 5.0 -8.0 -0.7 

 I 1.4 0.5 -0.9 4.1 2.0 2.6 -0.9 1.1 

---------------------------------------------------------------------------------------------------

 Indexes 2012=100

2022 ANNUAL 113.8 128.8 113.1 143.0 112.0 125.6 123.4 124.6 

2022 IV 114.4 130.0 113.6 145.0 111.5 126.7 126.6 126.7 

 III 113.5 r 129.0 r 113.6 r 143.4 r 111.1 r 126.3 r 125.0 r 125.7 r

 II 113.2 127.9 113.0 142.3 111.8 125.7 123.1 124.5 

 I 114.3 128.3 112.3 141.3 113.8 123.6 118.8 121.5 

2021 ANNUAL 115.3 126.0 109.3 136.8 115.7 118.7 112.8 116.1 

2021 IV 116.1 129.1 111.2 140.6 115.8 121.1 116.4 119.0 

 III 114.8 126.4 110.0 137.8 115.7 120.0 113.1 117.0 

 II 115.5 125.5 108.7 135.5 115.6 117.3 112.3 115.1 

 I 114.7 123.0 107.2 133.0 115.7 116.0 109.4 113.1 

2020 ANNUAL 112.6 117.0 103.9 130.3 115.4 115.7 104.2 110.6 

2020 IV 113.8 120.6 105.9 133.4 117.2 117.2 104.0 111.4 

 III 115.1 119.0 103.4 130.6 115.4 113.5 107.3 110.8 

 II 112.9 108.1 95.8 132.2 118.1 117.1 99.8 109.5 

 I 108.6 120.4 110.8 125.0 110.8 115.1 105.3 110.8 

---------------------------------------------------------------------------------------------------

See footnotes following Table 6. February 2, 2023

r=revised Source: Bureau of Labor Statistics
-10-

 

Table 2. Nonfarm business sector: Labor productivity, hourly compensation, unit labor costs, and

prices, seasonally adjusted.

 Value-

 Real added

 Hourly hourly Unit output

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)

2022 ANNUAL -1.3 2.3 3.7 4.4 -3.4 5.7 8.5 6.9 

2022 IV 3.0 3.5 0.5 4.1 1.0 1.1 5.6 3.0 

 III 1.4 r 3.6 r 2.3 r 3.4 r -2.2 r 2.0 r 6.2 r 3.8 r

 II -4.1 -1.2 2.9 2.3 -7.4 6.7 13.9 9.7 

 I -5.9 -2.5 3.6 2.1 -6.4 8.5 6.4 7.6 

2021 ANNUAL 2.4 7.8 5.3 4.9 0.2 2.4 7.7 4.6 

2021 IV 4.4 9.1 4.5 8.2 0.3 3.6 12.9 7.5 

 III -2.4 2.7 5.3 6.7 0.0 9.3 2.3 6.3 

 II 2.7 8.9 6.0 7.4 -0.7 4.5 8.6 6.2 

 I 3.0 8.5 5.3 -1.3 -5.2 -4.2 22.8 6.2 

2020 ANNUAL 4.4 -3.5 -7.6 8.1 6.8 3.6 -3.8 0.4 

2020 IV -3.9 5.3 9.5 9.5 7.1 13.9 -12.7 1.9 

 III 7.2 47.2 37.2 -5.5 -9.8 -11.9 32.4 4.2 

 II 17.9 -35.0 -44.9 25.8 30.1 6.6 -17.4 -3.9 

 I -1.4 -6.7 -5.4 9.8 8.4 11.3 -12.8 0.4 

---------------------------------------------------------------------------------------------------

 Percent change from corresponding quarter of previous year

2022 ANNUAL -1.3 2.3 3.7 4.4 -3.4 5.7 8.5 6.9 

2022 IV -1.5 0.8 2.3 3.0 -3.8 4.5 8.0 6.0 

 III -1.1 r 2.2 r 3.3 r 4.0 -4.0 5.2 r 9.8 r 7.1 

 II -2.1 1.9 4.1 4.8 -3.5 7.0 8.8 7.8 

 I -0.4 4.5 4.8 6.1 -1.8 6.5 7.5 6.9 

2021 ANNUAL 2.4 7.8 5.3 4.9 0.2 2.4 7.7 4.6 

2021 IV 1.9 7.3 5.3 5.2 -1.4 3.2 11.4 6.5 

 III -0.2 6.3 6.5 5.5 0.2 5.7 4.5 5.1 

 II 2.2 16.3 13.8 2.3 -2.4 0.1 11.4 4.6 

 I 5.8 2.2 -3.4 6.4 4.5 0.6 4.0 2.0 

2020 ANNUAL 4.4 -3.5 -7.6 8.1 6.8 3.6 -3.8 0.4 

2020 IV 4.7 -1.5 -5.9 9.3 8.0 4.5 -4.5 0.6 

 III 6.4 -2.4 -8.2 8.6 7.3 2.1 -2.0 0.3 

 II 5.1 -10.4 -14.8 10.3 9.8 4.9 -7.8 -0.6 

 I 1.4 0.5 -1.0 4.2 2.0 2.7 -1.1 1.1 

---------------------------------------------------------------------------------------------------

 Indexes 2012=100

2022 ANNUAL 113.7 128.9 113.4 143.0 112.0 125.8 122.8 124.5 

2022 IV 114.3 130.2 114.0 144.9 111.4 126.8 126.0 126.5 

 III 113.4 r 129.1 r 113.8 r 143.5 r 111.1 r 126.5 r 124.3 r 125.5 r

 II 113.0 128.0 113.2 142.3 111.8 125.9 122.5 124.4 

 I 114.2 128.4 112.4 141.5 113.9 123.8 118.5 121.5 

2021 ANNUAL 115.2 126.0 109.3 137.0 115.9 118.9 113.3 116.4 

2021 IV 116.0 129.2 111.4 140.7 115.9 121.3 116.7 119.3 

 III 114.7 126.4 110.2 138.0 115.8 120.3 113.2 117.2 

 II 115.4 125.5 108.8 135.8 115.8 117.6 112.6 115.4 

 I 114.7 122.9 107.2 133.4 116.0 116.3 110.3 113.7 

2020 ANNUAL 112.5 116.9 103.9 130.6 115.6 116.1 105.2 111.3 

2020 IV 113.8 120.4 105.8 133.8 117.5 117.6 104.8 112.0 

 III 114.9 118.9 103.4 130.8 115.5 113.8 108.4 111.5 

 II 112.9 107.9 95.6 132.7 118.6 117.5 101.1 110.3 

 I 108.4 120.2 110.9 125.3 111.0 115.6 106.0 111.4 

---------------------------------------------------------------------------------------------------

See footnotes following Table 6. February 2, 2023

r=revised Source: Bureau of Labor Statistics
-11-

 

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)

2022 ANNUAL -0.9 3.2 4.2 3.4 -4.3 4.3 

2022 IV -1.5 -2.6 -1.1 3.2 0.1 4.8 

 III -3.5 r -0.2 r 3.5 r 2.7 -2.8 r 6.5 r

 II 2.6 r 3.3 r 0.7 3.5 -6.3 0.9 r

 I -3.3 3.7 7.3 1.4 -7.1 4.9 

2021 ANNUAL 2.7 5.8 3.1 2.7 -1.8 0.1 

2021 IV -0.7 5.9 6.7 8.7 0.7 9.5 

 III -0.5 3.8 4.3 -0.5 -6.7 0.0 

 II 5.1 5.7 0.6 6.6 -1.4 1.4 

 I 0.7 2.6 1.9 -1.7 -5.5 -2.3 

2020 ANNUAL 0.8 -6.6 -7.4 7.0 5.7 6.1 

2020 IV -0.5 8.3 8.9 7.4 5.0 7.9 

 III 17.8 53.1 30.0 -12.4 -16.4 -25.6 

 II -5.3 -43.1 -39.9 30.2 34.6 37.4 

 I 0.5 -5.3 -5.8 5.7 4.3 5.1 

---------------------------------------------------------------------------------------------------

 Percent change from corresponding quarter of previous year

2022 ANNUAL -0.9 3.2 4.2 3.4 -4.3 4.3 

2022 IV -1.5 1.0 2.5 2.7 -4.1 4.3 

 III -1.3 r 3.1 r 4.5 4.1 r -3.9 5.4 r

 II -0.5 4.1 r 4.7 3.2 -4.9 3.8 r

 I 0.1 4.8 4.7 4.0 -3.7 3.9 

2021 ANNUAL 2.7 5.8 3.1 2.7 -1.8 0.1 

2021 IV 1.1 4.5 3.3 3.2 -3.3 2.1 

 III 1.2 5.1 3.9 2.9 -2.2 1.7 

 II 5.5 15.8 9.7 -0.3 -4.9 -5.6 

 I 2.8 -0.8 -3.5 4.8 2.8 1.9 

2020 ANNUAL 0.8 -6.6 -7.4 7.0 5.7 6.1 

2020 IV 2.8 -2.8 -5.4 6.7 5.4 3.8 

 III 2.9 -5.4 -8.1 7.2 5.9 4.2 

 II -1.7 -15.2 -13.7 10.5 10.0 12.4 

 I -1.3 -3.2 -1.8 3.4 1.3 4.8 

---------------------------------------------------------------------------------------------------

 Indexes 2012=100

2022 ANNUAL 97.7 103.2 105.6 131.2 102.7 134.3 

2022 IV 97.1 102.8 105.9 132.7 102.0 136.6 

 III 97.5 r 103.5 r 106.2 r 131.6 r 102.0 r 135.0 r

 II 98.4 r 103.6 r 105.2 130.7 102.7 132.9 r

 I 97.8 102.7 105.1 129.6 104.4 132.6 

2021 ANNUAL 98.6 99.9 101.4 126.9 107.3 128.7 

2021 IV 98.6 101.8 103.3 129.2 106.3 131.0 

 III 98.8 100.4 101.6 126.5 106.2 128.1 

 II 98.9 99.4 100.5 126.6 108.0 128.0 

 I 97.7 98.1 100.4 124.6 108.4 127.6 

2020 ANNUAL 96.0 94.4 98.3 123.5 109.3 128.6 

2020 IV 97.5 97.4 99.9 125.1 109.9 128.3 

 III 97.6 95.5 97.8 122.9 108.6 125.9 

 II 93.7 85.9 91.6 127.1 113.6 135.6 

 I 95.0 98.9 104.1 119.0 105.4 125.2 

---------------------------------------------------------------------------------------------------

See footnotes following Table 6. February 2, 2023

r=revised Source: Bureau of Labor Statistics
-12-

 

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)

2022 ANNUAL -0.2 4.5 4.7 2.7 -4.9 2.9 

2022 IV -1.7 -2.9 -1.2 2.4 -0.8 4.1 

 III -5.0 1.7 7.0 r 2.2 -3.3 7.5 

 II 3.9 5.1 1.2 4.5 -5.4 0.6 

 I -2.8 5.5 8.6 -0.4 -8.8 2.5 

2021 ANNUAL 5.0 8.2 3.0 3.5 -1.2 -1.4 

2021 IV 1.7 6.5 4.7 10.3 2.2 8.4 

 III 1.7 6.7 4.9 -6.1 -12.0 -7.7 

 II 1.7 1.0 -0.7 9.9 1.6 8.0 

 I 1.5 6.4 4.8 -0.3 -4.2 -1.7 

2020 ANNUAL 1.1 -7.9 -8.9 7.1 5.8 6.0 

2020 IV 2.3 9.1 6.7 11.2 8.8 8.7 

 III 42.5 93.9 36.1 -15.9 -19.7 -41.0 

 II -13.9 -53.0 -45.4 34.7 39.3 56.5 

 I -1.6 -8.3 -6.8 4.6 3.3 6.3 

---------------------------------------------------------------------------------------------------

 Percent change from corresponding quarter of previous year

2022 ANNUAL -0.2 4.5 4.7 2.7 -4.9 2.9 

2022 IV -1.5 2.3 3.8 2.1 -4.6 3.6 

 III -0.6 4.7 5.3 r 4.1 -3.9 4.7 

 II 1.1 6.0 4.8 1.9 -6.2 0.8 

 I 0.6 4.9 4.3 3.2 -4.4 2.6 

2021 ANNUAL 5.0 8.2 3.0 3.5 -1.2 -1.4 

2021 IV 1.7 5.1 3.4 3.2 -3.3 1.5 

 III 1.8 5.7 3.9 3.4 -1.7 1.6 

 II 10.8 22.8 10.9 0.6 -4.0 -9.2 

 I 6.2 1.4 -4.5 5.9 3.9 -0.3 

2020 ANNUAL 1.1 -7.9 -8.9 7.1 5.8 6.0 

2020 IV 5.4 -2.3 -7.3 7.1 5.9 1.6 

 III 4.8 -5.1 -9.5 7.3 5.9 2.3 

 II -4.7 -20.0 -16.1 11.3 10.8 16.8 

 I -2.0 -4.3 -2.3 2.8 0.7 4.9 

---------------------------------------------------------------------------------------------------

 Indexes 2012=100

2022 ANNUAL 102.2 106.9 104.5 131.9 103.3 129.0 

2022 IV 101.5 106.9 105.2 133.2 102.4 131.2 

 III 102.0 r 107.6 r 105.6 r 132.5 r 102.6 r 129.9 r

 II 103.3 r 107.2 r 103.8 131.8 103.5 127.6 r

 I 102.3 105.9 103.5 130.3 105.0 127.4 

2021 ANNUAL 102.5 102.3 99.9 128.5 108.7 125.4 

2021 IV 103.0 104.4 101.4 130.5 107.4 126.6 

 III 102.6 102.8 100.2 127.3 106.8 124.1 

 II 102.2 101.2 99.0 129.3 110.3 126.6 

 I 101.7 100.9 99.2 126.3 109.8 124.2 

2020 ANNUAL 97.6 94.6 96.9 124.2 109.9 127.2 

2020 IV 101.3 99.4 98.0 126.4 111.0 124.7 

 III 100.8 97.2 96.5 123.1 108.7 122.1 

 II 92.2 82.4 89.3 128.5 114.9 139.4 

 I 95.8 99.5 103.9 119.3 105.7 124.6 

---------------------------------------------------------------------------------------------------

See footnotes following Table 6. February 2, 2023

r=revised Source: Bureau of Labor Statistics
-13-

 

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)

2022 ANNUAL -1.3 2.0 3.4 4.6 -3.1 6.0 

2022 IV -1.4 -2.3 -0.9 5.0 1.8 6.5 

 III -0.1 r -2.1 r -2.1 r 2.9 r -2.7 r 2.9 r

 II 1.5 r 1.4 r -0.2 1.6 -8.1 0.1 r

 I -3.2 1.8 5.1 4.6 -4.2 8.1 

2021 ANNUAL 0.3 3.5 3.2 1.4 -3.1 1.2 

2021 IV -4.3 5.1 9.8 6.3 -1.5 11.1 

 III -2.4 0.8 3.3 11.1 4.1 13.9 

 II 8.2 11.2 2.7 1.0 -6.5 -6.7 

 I 1.3 -1.3 -2.5 -5.1 -8.8 -6.3 

2020 ANNUAL -0.1 -4.9 -4.8 7.2 5.9 7.3 

2020 IV -4.3 7.7 12.5 1.0 -1.2 5.5 

 III -0.6 19.8 20.6 -6.4 -10.7 -5.8 

 II -1.2 -30.7 -29.8 24.8 29.1 26.4 

 I 2.5 -1.8 -4.1 8.0 6.6 5.4 

---------------------------------------------------------------------------------------------------

 Percent change from corresponding quarter of previous year

2022 ANNUAL -1.3 2.0 3.4 4.6 -3.1 6.0 

2022 IV -0.8 -0.3 0.5 3.5 -3.3 4.3 

 III -1.5 r 1.5 r 3.1 3.8 -4.1 5.5 r

 II -2.1 r 2.3 r 4.5 5.9 -2.5 8.2 r

 I -0.5 4.7 5.2 5.7 -2.1 6.3 

2021 ANNUAL 0.3 3.5 3.2 1.4 -3.1 1.2 

2021 IV 0.6 3.9 3.2 3.2 -3.3 2.6 

 III 0.6 4.5 3.9 1.9 -3.2 1.3 

 II 1.1 9.1 7.9 -2.4 -6.9 -3.4 

 I -1.2 -3.0 -1.8 2.9 1.0 4.2 

2020 ANNUAL -0.1 -4.9 -4.8 7.2 5.9 7.3 

2020 IV -0.9 -3.2 -2.3 6.3 5.0 7.3 

 III 0.3 -5.4 -5.7 7.5 6.2 7.2 

 II 0.1 -9.5 -9.7 9.8 9.3 9.7 

 I -0.5 -1.6 -1.1 4.7 2.5 5.2 

---------------------------------------------------------------------------------------------------

 Indexes 2012=100

2022 ANNUAL 96.5 103.7 107.4 130.0 101.8 134.7 

2022 IV 96.4 103.0 106.9 131.8 101.3 136.8 

 III 96.7 r 103.6 r 107.2 r 130.2 r 100.9 r 134.6 r

 II 96.7 r 104.2 r 107.7 129.3 101.6 133.7 r

 I 96.3 103.8 107.8 128.8 103.7 133.6 

2021 ANNUAL 97.8 101.6 103.9 124.3 105.1 127.0 

2021 IV 97.1 103.4 106.4 127.3 104.8 131.1 

 III 98.2 102.1 104.0 125.4 105.2 127.7 

 II 98.8 101.9 103.1 122.1 104.1 123.6 

 I 96.9 99.2 102.4 121.8 105.9 125.7 

2020 ANNUAL 97.6 98.2 100.7 122.5 108.5 125.6 

2020 IV 96.5 99.5 103.1 123.4 108.4 127.8 

 III 97.6 97.7 100.1 123.1 108.7 126.1 

 II 97.8 93.4 95.5 125.1 111.8 128.0 

 I 98.1 102.3 104.4 118.4 104.9 120.7 

---------------------------------------------------------------------------------------------------

See footnotes following Table 6. February 2, 2023

r=revised Source: Bureau of Labor Statistics
-14-

 

Table 6. Nonfinancial corporate sector: Labor productivity, hourly compensation, unit labor costs,

unit profits, and prices, seasonally adjusted.

 Value-

 Real added Unit

 Hourly hourly output Unit combined

Year Labor compen- compen- Unit price nonlabor input Unit

and produc- Hours sation sation labor deflator costs costs profits

quarter tivity Output worked (1) (2) costs (4) (6) (7) (8)

---------------------------------------------------------------------------------------------------------

 Percent change from previous quarter at annual rate (5)

2022 III -1.6 r 1.9 r 3.5 r 3.6 r -2.0 r 5.3 4.3 r 4.0 r 4.9 r 1.2 r

 II -3.2 -0.6 2.7 3.8 -6.1 7.2 12.6 12.0 8.6 36.4 

 I -4.8 -1.2 3.8 3.8 -4.9 9.1 12.2 24.7 13.6 4.8 

2021 ANNUAL 3.2 8.3 4.9 4.7 0.1 1.5 5.0 4.1 2.3 22.9 

2021 IV -1.0 5.3 6.4 7.0 -0.9 8.1 8.6 17.7 10.9 -3.1 

 III 1.8 5.4 3.6 10.0 3.1 8.1 8.2 17.0 10.7 -4.0 

 II -0.7 4.7 5.4 7.3 -0.8 8.0 8.2 -10.8 2.0 48.2 

 I 2.5 7.3 4.7 -1.7 -5.5 -4.1 4.4 3.3 -1.9 51.6 

2020 ANNUAL 3.5 -4.0 -7.3 8.1 6.7 4.4 1.4 -7.5 0.6 6.6 

2020 IV 12.6 24.3 10.4 7.1 4.8 -4.9 1.3 59.3 10.3 -38.3 

 III 0.9 34.5 33.3 -6.4 -10.6 -7.2 3.2 -22.9 -11.9 177.2 

 II 3.5 -41.0 -43.0 28.9 33.3 24.6 2.9 -35.4 2.3 7.0 

 I 2.7 -2.3 -4.9 8.5 7.1 5.6 -0.6 2.5 4.6 -30.6 

---------------------------------------------------------------------------------------------------------

 Percent change from corresponding quarter of previous year

2022 III -2.7 1.3 4.1 4.5 -3.5 7.4 9.4 r 14.4 r 9.5 8.8 r

 II -1.8 2.2 4.1 6.1 -2.3 8.1 10.4 17.8 10.9 7.4 

 I -1.2 3.5 4.8 7.0 -0.9 8.3 9.3 11.3 9.2 9.6 

2021 ANNUAL 3.2 8.3 4.9 4.7 0.1 1.5 5.0 4.1 2.3 22.9 

2021 IV 0.6 5.7 5.0 5.6 -1.0 4.9 7.3 6.1 5.3 20.3 

 III 3.9 10.2 6.0 5.6 0.3 1.6 5.5 14.5 5.1 7.4 

 II 3.7 17.1 12.9 1.4 -3.2 -2.2 4.3 3.1 -0.7 40.0 

 I 4.8 1.4 -3.2 6.2 4.2 1.3 3.0 -4.8 -0.6 29.1 

2020 ANNUAL 3.5 -4.0 -7.3 8.1 6.7 4.4 1.4 -7.5 0.6 6.6 

2020 IV 4.8 -0.9 -5.5 8.8 7.6 3.8 1.7 -5.0 1.0 6.2 

 III 2.9 -5.3 -8.0 8.5 7.2 5.5 1.6 -16.4 -1.6 23.7 

 II 3.3 -11.4 -14.3 10.6 10.1 7.1 1.1 -9.9 1.7 -3.0 

 I 2.6 1.6 -1.0 4.1 2.0 1.5 1.0 0.9 1.3 -1.2 

---------------------------------------------------------------------------------------------------------

 Indexes 2012=100

2022 III 111.2 r 126.1 r 113.4 r 147.0 r 113.9 r 132.2 r 130.3 r 119.6 r 128.0 r 143.9 r

 II 111.6 125.5 112.5 145.7 114.5 130.5 128.9 118.5 126.5 143.4 

 I 112.5 125.7 111.7 144.4 116.3 128.3 125.2 115.2 123.9 132.7 

2021 ANNUAL 114.0 123.8 108.6 139.0 117.6 121.9 118.0 104.4 116.1 129.5 

2021 IV 113.9 126.1 110.7 143.0 117.8 125.5 121.6 109.0 120.0 131.2 

 III 114.2 124.5 109.0 140.6 118.0 123.1 119.1 104.6 117.0 132.2 

 II 113.7 122.9 108.0 137.3 117.1 120.7 116.8 100.6 114.0 133.5 

 I 113.9 121.5 106.6 134.9 117.3 118.4 114.5 103.5 113.5 121.0 

2020 ANNUAL 110.4 114.3 103.5 132.7 117.5 120.2 112.4 100.3 113.6 105.4 

2020 IV 113.2 119.3 105.4 135.5 119.0 119.7 113.3 102.7 114.0 109.1 

 III 109.9 113.0 102.8 133.2 117.6 121.2 112.9 91.4 111.3 123.1 

 II 109.6 104.9 95.7 135.4 121.0 123.5 112.0 97.5 114.8 95.4 

 I 108.7 119.8 110.2 127.0 112.6 116.9 111.2 108.8 114.2 93.8 

---------------------------------------------------------------------------------------------------------

See footnotes following Table 6. February 2, 2023

r=revised Source: Bureau of Labor Statistics
-15-

 

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.

SIZE OF REVISIONS: Productivity and cost measures are revised on a regular schedule as more 

complete data become available. The first estimate is published within 40 days of the close of the 

reference quarter, the second estimate approximately 30 days later, and the third estimate approximately 

60 days after the second estimate. Based on past revisions, the third estimate of nonfarm business sector 

quarterly labor productivity growth has differed from the first estimate by -1.0 to +1.3 percentage point 

about 80 percent of the time. This interval is based on estimates for reference quarters from the first 

quarter of 2001 to the third quarter of 2022. For more about revisions to labor productivity growth see 

“How large are revisions to estimates of quarterly labor productivity growth?” at 

www.bls.gov/osmr/research-papers/2021/ec210040.htm.

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 1978-2021 is based on the Consumer Price Index Retroactive series (CPI-URS).

(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 

adjustment.