Internet address: http://www.bls.gov/lpc/ USDL 08-0171 

Historical, technical TRANSMISSION OF THIS 

 information: (202) 691-5606 MATERIAL IS EMBARGOED 

Current data: (202) 691-5200 UNTIL 8:30 A.M. EST, 

Media contact: (202) 691-5902 WEDNESDAY, FEBRUARY 6, 2008 

PRODUCTIVITY AND COSTS 

Preliminary Fourth Quarter and 

Annual Averages for 2007 

 The Bureau of Labor Statistics of the U.S. Department of Labor today reported 

preliminary productivity data—as measured by output per hour of all persons—for the fourth 

quarter and for the full year 2007. The seasonally adjusted annual rates of productivity change 

in the fourth quarter and the annual average changes were: 

 Fourth Annual averages 

 quarter 2006-2007 

Business sector 0.6 1.6 

Nonfarm business sector 1.8 1.6 

In the fourth quarter of 2007, productivity increased 0.6 percent in the business sector, 

with output increasing 0.2 percent and hours decreasing 0.5 percent. In the nonfarm business 

sector, productivity rose 1.8 percent as output grew 0.4 percent and hours fell 1.5 percent. When 

the annual averages for 2007 were compared with annual averages for 2006, productivity rose 

1.6 percent in the business and nonfarm business sectors—slightly more than the 1.0 percent 

gain in both sectors from 2005 to 2006. 

 In the manufacturing sector, increases in productivity were: 

 Fourth Annual averages 

 quarter 2006-2007 

Manufacturing sector 2.5 2.9 

 Durable goods manufacturing 4.6 4.3 

 Nondurable goods manufacturing -0.9 1.1 

Manufacturing productivity grew at a 2.5 percent annual rate in the fourth quarter, as 

output fell but hours fell faster. On an annual average basis, output per hour in the 

manufacturing sector posted a 2.9 percent increase in 2007. Output and hours in manufacturing, 

The data in this release do not reflect the annual benchmark revision of the BLS Current 

Employment Statistics program data released on February 1, 2008. This benchmark will be 

incorporated in our next release on March 5, 2008. 
2 

which includes about 12 percent of U.S. business-sector employment, tend to vary more from 

quarter to quarter than data for the aggregate business and nonfarm business sectors. Fourthquarter productivity and related measures are summarized in table A, and annual average data in 

table B. Detailed information is presented in tables 1 through 5. 

Table A. Productivity and costs: Preliminary fourth-quarter 2007 measures 

(Seasonally adjusted annual rates) 

Sector 

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation 

Unit 

labor 

costs 

 Percent change from preceding quarter 

Business 0.6 0.2 -0.5 2.8 -1.4 2.2 

Nonfarm business 1.8 0.4 -1.5 3.9 -0.3 2.1 

Manufacturing 2.5 -1.9 -4.3 4.2 -0.1 1.7 

 Durable 4.6 -1.5 -5.9 5.2 0.9 0.6 

 Nondurable -0.9 -2.4 -1.5 2.6 -1.6 3.5 

 Percent change from same quarter a year ago 

Business 2.7 2.6 -0.1 3.8 -0.2 1.1 

Nonfarm business 2.6 2.6 0.0 3.7 -0.3 1.0 

Manufacturing 2.6 1.8 -0.8 3.1 -0.9 0.5 

 Durable 4.1 2.8 -1.3 3.1 -0.9 -1.0 

 Nondurable 0.7 0.7 0.0 3.3 -0.7 2.6 

The data sources and methods used in the preparation of the manufacturing series differ 

from those used in preparing the business and nonfarm business series, and these measures are 

not directly comparable. Output measures for business and nonfarm business are based on 

measures of gross domestic product prepared by the Bureau of Economic Analysis of the U.S. 

Department of Commerce. Quarterly output measures for manufacturing reflect indexes of 

industrial production independently prepared by the Board of Governors of the Federal Reserve 

System. See Technical Notes for further information on data sources (page 8). 

THIRD-TO-FOURTH QUARTER CHANGES, 2007 

Business 

 Productivity in the business sector increased by 0.6 percent in the fourth quarter of 2007, 

reflecting an increase of 0.2 percent in output and a decrease of 0.5 percent in hours of all 

persons (seasonally adjusted annual rates). Output per hour had risen 6.5 percent in the third 

quarter of 2007, as output rose 5.7 percent and hours fell 0.7 percent. When the fourth quarter of 
3 

2007 is compared to the fourth quarter of 2006, business sector productivity grew 2.7 percent—

the same as the average rate of growth for the 2000-2006 period. 

 Hourly compensation grew 2.8 percent in the fourth quarter of 2007, down from a 4.4 

percent increase one quarter earlier. This measure includes wages and salaries, supplements, 

employer contributions to employee-benefit plans, and taxes. Real hourly compensation, which 

takes into account changes in consumer prices, decreased 1.4 percent in the fourth quarter of 

2007. Consumer prices increased at a 4.3 percent annual rate in the fourth quarter of 2007, 

contributing to the decline in real hourly compensation. 

 Unit labor costs, which relate hourly compensation to output per hour, increased 2.2 

percent in the fourth quarter of 2007 after falling 2.0 percent in the third quarter and 1.1 percent 

in the second quarter. 

Nonfarm business 

In the nonfarm business sector, productivity rose 1.8 percent in the fourth quarter of 

2007, as output grew 0.4 percent and hours of all persons—employees, proprietors, and unpaid 

family workers—fell 1.5 percent (seasonally adjusted annual rates). Productivity grew 6.0 

percent in the third quarter of 2007 as output rose 5.6 percent and hours fell 0.3 percent (table 2). 

During the four-quarter period ending with the fourth quarter of 2007, nonfarm business sector 

productivity grew 2.6 percent—similar to the 2.7 percent average rate of growth from 2000 to 

2006. 

 Hourly compensation in the nonfarm business sector rose 3.9 percent in the fourth quarter 

of 2007 following a 4.0 percent increase in the third quarter. When the 4.3 percent increase in 

consumer prices was taken into account, real hourly compensation edged down 0.3 percent 

during the fourth quarter of 2007 (seasonally-adjusted annual rates). 

Unit labor costs rose 2.1 percent in the fourth quarter of 2007, after declining 1.9 percent 

in the third quarter and 1.1 percent the second quarter. The implicit price deflator for nonfarm 

business output rose 1.6 percent in the fourth quarter after rising 0.1 percent one quarter earlier. 

Manufacturing 

Manufacturing productivity grew 2.5 percent in the fourth quarter of 2007 as output 

declined 1.9 percent and hours dropped 4.3 percent (seasonally adjusted annual rates). The 

decrease in hours was the largest since the third quarter of 2003, when hours fell 6.0 percent. In 

the third quarter of 2007, manufacturing productivity increased 4.0 percent, reflecting a 3.9 

percent rise in output and a 0.1 percent decrease in hours (table 3). In the durable goods 

manufacturing sector, productivity rose 4.6 percent in the fourth quarter of 2007, as output 

declined 1.5 percent and hours fell 5.9 percent (table 4). In the nondurable goods sector, 

productivity, output and hours all fell in the fourth quarter; output per hour declined 0.9 percent, 

output decreased 2.4 percent and hours declined 1.5 percent (table 5). 

 Hourly compensation of all manufacturing workers increased 4.2 percent during the 

fourth quarter of 2007, reflecting increases of 5.2 percent in durable goods industries and 2.6 
4 

percent in nondurable goods industries. When the increase in consumer prices was taken into 

account, real hourly compensation in total manufacturing decreased 0.1 percent in the fourth 

quarter. 

Unit labor costs for the manufacturing sector rose 1.7 percent in fourth-quarter 2007 

following declines of 2.9 percent in the third quarter and 3.7 percent in the second quarter. Unit 

labor costs rose 0.6 percent in durable goods manufacturing and 3.5 percent in nondurable goods 

industries in the fourth quarter. 

ANNUAL AVERAGE CHANGES, 2006-2007 

Business and Nonfarm business 

When annual averages for 2007 were compared with annual averages for 2006, labor 

productivity increased 1.6 percent in both the business and nonfarm business sectors (table B). 

Productivity grew at 1.0 percent in both sectors from 2005 to 2006. From 2000 to 2005, output 

per hour grew at an average annual rate of 3.1 percent in the business sector and 3.0 percent in 

the nonfarm business sector. Between 1990 and 2000, productivity rose 2.1 percent per year in 

the business sector and 2.0 percent per year in nonfarm businesses. 

 Table B. Annual average changes in productivity and related measures, 1998-2007 

 Measure 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 

 Business: 

 Productivity ...................... 2.8 3.1 2.9 2.6 4.1 3.8 2.9 2.0 1.0 1.6 

 Output ............................... 4.8 5.1 3.9 0.3 1.5 3.1 4.2 3.6 3.1 2.3 

 Hours ................................ 2.0 2.0 1.0 -2.2 -2.5 -0.7 1.3 1.6 2.1 0.7 

 Hourly compensation........ 6.1 4.9 7.1 4.2 3.5 4.1 3.7 4.0 3.9 4.8 

 Real hourly compensation 4.6 2.7 3.7 1.4 1.9 1.7 1.1 0.6 0.6 1.9 

 Unit labor costs ................ 3.2 1.8 4.1 1.6 -0.5 0.2 0.9 2.0 2.9 3.1 

 Nonfarm Business: 

 Productivity ...................... 2.8 2.9 2.8 2.5 4.1 3.7 2.7 1.9 1.0 1.6 

 Output ............................... 5.0 5.2 3.8 0.4 1.5 3.1 4.1 3.6 3.2 2.3 

 Hours ................................ 2.1 2.2 1.0 -2.0 -2.6 -0.6 1.4 1.6 2.2 0.7 

 Hourly compensation........ 6.0 4.7 7.2 4.0 3.6 4.0 3.6 4.0 3.9 4.8 

 Real hourly compensation 4.5 2.5 3.7 1.2 2.0 1.7 0.9 0.7 0.6 1.8 

 Unit labor costs ................ 3.1 1.8 4.2 1.5 -0.5 0.3 0.9 2.0 2.9 3.1 

 Manufacturing: 

 Productivity ...................... 5.4 4.4 4.1 1.6 6.9 6.2 2.1 4.8 4.0 2.9 

 Output ............................... 5.2 3.8 2.7 -5.1 -0.7 1.0 1.8 3.5 4.9 2.0 

 Hours ................................ -0.2 -0.6 -1.3 -6.5 -7.1 -4.9 -0.3 -1.2 0.9 -1.0 

 Hourly compensation........ 5.8 3.9 9.2 2.3 7.3 7.0 2.0 4.2 2.5 4.6 

 Real hourly compensation 4.4 1.8 5.7 -0.5 5.6 4.7 -0.6 0.8 -0.8 1.7 

 Unit labor costs ................ 0.4 -0.5 4.9 0.7 0.3 0.8 -0.1 -0.6 -1.5 1.6 
5 

In 2007, hourly compensation increased 4.8 percent in both the business and nonfarm 

business sectors, following 3.9 percent gains in both sectors during 2006. Real hourly 

compensation increased 1.9 percent in the business sector and 1.8 percent in the nonfarm 

business sector during 2007 and 0.6 percent in both sectors during 2006. 

Unit labor costs increased 3.1 percent in both the business and nonfarm sectors in 2007—

more than in any year since 2000, when unit labor costs increased 4.1 percent and 4.2 percent in 

the business and nonfarm business sectors, respectively. 

Manufacturing 

 In manufacturing, labor productivity rose 2.9 percent in 2007, less than the 4.2 percent 

average annual rate from 2000 through 2006. Output increased 2.0 percent and hours decreased 

1.0 percent in 2007 (table B). There was a 4.3 percent increase in durable goods manufacturing 

productivity in 2007, as output rose 2.9 percent and hours fell 1.4 percent. In nondurable goods 

manufacturing, output per hour increased 1.1 percent; output rose 0.9 percent and hours edged 

down 0.2 percent. 

 The hourly compensation of manufacturing workers increased 4.6 percent in 2007, 

slightly more than the average annual growth rate of 4.2 percent for the 2000–2006 time period. 

In 2007, hourly compensation rose 4.9 percent in durable goods manufacturing and 4.1 percent 

in nondurable goods manufacturing. Taking into account the rise in consumer prices, real hourly 

compensation in total manufacturing rose 1.7 percent in 2007 after decreasing 0.8 percent the 

previous year. 

 

Unit labor costs in manufacturing increased 1.6 percent in 2007, a reversal from the 1.5 

percent decline in 2006. In the durable goods manufacturing sector unit labor costs edged up 0.6 

percent in 2007 following a 2.9 percent decline in 2006. Unit labor costs in nondurable goods 

industries rose 3.0 percent in 2007 after declining 0.5 percent in 2006. 

 

Revised Measures

 Current and previous measures for the third quarter of 2007 for the business, nonfarm 

business, and manufacturing sectors are compared in table C. In both the business and nonfarm 

business sectors, productivity growth was lower than reported on Dec. 5. In the business sector, 

productivity growth was revised down from 6.7 percent to 6.5 percent due to an upward revision 

to hours; output was unchanged. Nonfarm business sector productivity was also revised down—

from 6.3 percent to 6.0 percent—reflecting both a downward revision to output and an upward 

revision to hours. 

In both the business and nonfarm business sectors, hourly compensation grew less than 

previously reported. Unit labor costs were similar to those previously reported for both the 

business and nonfarm business sectors, as downward revisions to productivity were coupled with 

downward revisions to hourly compensation. 
6 

Table C. Previous and revised productivity and related measures 

Quarterly percent change at seasonally adjusted annual rate 

Sector 

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation 

Unit 

labor 

costs 

Third quarter 2007 

Business: 

 Previous ....................... 6.7 5.7 -1.0 4.7 2.7 -2.0 

 Revised......................... 6.5 5.7 -0.7 4.4 2.4 -2.0 

Nonfarm business: 

 Previous ....................... 6.3 5.7 -0.6 4.2 2.3 -2.0 

 Revised......................... 6.0 5.6 -0.3 4.0 2.0 -1.9 

Manufacturing: 

 Previous ....................... 5.0 4.5 -0.5 1.5 -0.3 -3.3 

 Revised......................... 4.0 3.9 -0.1 1.0 -0.8 -2.9 

In the manufacturing sector productivity was revised down in the third quarter, reflecting 

a downward revision to output and an upward revision to hours. Unit labor costs fell less than 

previously reported as the downward revision to productivity was partially offset by a downward 

revision to hourly compensation. 

Revised measures: Nonfinancial Corporations 

Revised third-quarter productivity and costs measures for nonfinancial corporations also 

were announced today. In the third quarter of 2007, productivity grew less than reported on 

Dec. 5, reflecting a small downward revision to output and a slightly larger upward revision to 

hours. Unit labor costs were revised up as the downward revision to productivity was larger than 

the downward revision to hourly compensation (table D). 

Table D. Nonfinancial corporations: Previous and revised productivity and cost measures 

Quarterly percent c anges at easonally adjusted annual rate h s s

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation 

Unit 

labor 

costs 

Unit 

profits 

Implicit 

price 

deflator

Third quarter 2007 

Previous 4.2 4.7 0.5 4.4 2.5 0.2 -10.1 -1.5 

Revised 3.7 4.6 0.8 4.1 2.2 0.4 -11.0 -1.6 
7 

Next release date

 The next release of Productivity and Costs is scheduled for 8:30 A.M. EST, 

Wednesday, March 5, 2008. Revised fourth-quarter and annual average measures for business, 

nonfarm business, and manufacturing will be released at that time. This release will incorporate 

the annual benchmark revision to the employment levels in the BLS establishment survey data 

that were released February 1. All employment and hours series will incorporate new 

information on seasonal patterns. 
8 

TECHNICAL NOTES 

Labor Hours: Hours data for the labor productivity and cost measures include hours 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. The CES also provides average weekly 

paid hours of production and nonsupervisory workers in these establishments. Weekly paid 

hours are adjusted to hours at work using data from the National Compensation Survey (NCS). 

The BLS Hours at Work survey, conducted for this purpose, was used for earlier years. 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 for farm labor, nonfarm proprietors, and nonfarm unpaid 

family workers. Estimates of labor input 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. 

The CES measures jobs, counting a person who is employed by two or more 

establishments at each place of employment. In contrast, the CPS features measures of 

employment that count each person only once and classify each person according to his or her 

primary job; hours worked at all jobs by that person accrue to his or her primary job. However, 

the CPS also collects more detailed information on employment and hours worked at primary 

jobs and all other jobs, separately. The BLS productivity measures use the more detailed 

information on employment and hours to assign all hours worked to the correct industrial sector 

and avoid duplicating hours data from the CES. 

Output: Business sector output is an annual-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 inputs. Business output accounted for about 78 percent of the value of GDP in 

2000. Nonfarm business, which also excludes farming, accounted for about 77 percent of GDP in 

2000. 

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 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 index 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. Durables include the following 3-digit NAICS industries: wood 

product manufacturing; nonmetallic mineral product manufacturing; primary metal manufacturing; fabricated metal product manufacturing; machinery manufacturing; computer and electronic product manufacturing; electrical equipment and appliance manufacturing; transportation 

equipment manufacturing; furniture and related product manufacturing; and miscellaneous 

manu-facturing. Nondurables include: food manufacturing; beverage and tobacco product 

manufac-turing; textile mills; textile product mills; apparel manufacturing; leather and allied 

product manufacturing; paper manufacturing; printing and related support activities; petroleum 

and coal products manufacturing; chemical manufacturing; and plastics and rubber products 

manufacturing. 

Nonfinancial corporate output is an annual-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, 
9 

offices of other holding companies, or offices in the finance and insurance sector. Nonfinancial 

corporations accounted for about 54 percent of the value of GDP in 2000. 

Productivity: These productivity measures describe the relationship between real output and the 

labor time involved in its production. They show the changes from period to period in the 

amount of goods and services produced per hour. Although these measures relate output to hours 

at work of all persons engaged in a sector, they do not measure the specific contribution of labor, 

capital, or any other factor of production. Rather, 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: 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 domestic 

employees 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: The measures of unit labor costs in this release describe the relationship 

between compensation per hour and 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 

index number series where 1992=100, as percent changes from the corresponding quarter of the 

previous year, and as percent changes from the previous quarter presented at a compound annual 

rate. 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. These index numbers are 

available at the BLS web site, http://www.bls.gov/data/home.htm, or by contacting the BLS 

Division of Major Sector Productivity. (Telephone 202-691-5606 or email 

DPRWEB@BLS.GOV) 

Information in this release will be made available to sensory-impaired individuals upon 

request. Voice phone: 202-691-5606; Federal Relay Service number: 1-800-877-8339.
10 

Table 1. Business sector: Productivity, hourly compensation, unit labor costs, 

and prices, seasonally adjusted 

 Real 

 Year Output per Hours Compensa- compensa- Unit Unit non- Implicit 

 and hour of of all tion per tion per labor labor pay- price 

 quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4) 

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

 Indexes 1992=100 

2005 I 134.4 157.2 117.0 161.4 120.3 120.1 128.2 123.1 

 II 134.3 158.5 118.0 161.7 119.4 120.4 129.8 123.9 

 III 135.9 160.6 118.2 164.2 119.6 120.8 132.0 125.0 

 IV 135.5 161.0 118.8 165.4 119.4 122.0 133.0 126.1 

 ANNUAL 135.0 159.3 118.0 163.2 119.7 120.9 130.8 124.5 

2006 I 136.4 163.2 119.6 168.2 120.9 123.4 133.0 127.0 

 II 136.6 164.2 120.2 168.1 119.3 123.0 136.5 128.0 

 III 136.1 164.4 120.8 168.7 118.9 124.0 136.6 128.7 

 IV 136.5 165.5 121.2 173.4 122.8 127.0 132.2 128.9 

 ANNUAL 136.4 164.3 120.5 169.6 r120.5 124.3 134.6 128.2 

2007 I 136.6 165.6 121.2 175.7 123.3 128.6 132.9 130.2 

 II 137.8 167.3 121.5 176.8 122.2 128.3 135.4 130.9 

 III r140.0 r169.7 r121.2 r178.6 r122.9 r127.6 r136.7 r131.0 

 IV 140.2 169.7 121.1 179.9 122.5 128.3 137.5 131.8 

 ANNUAL 138.6 168.1 121.3 177.7 122.7 128.2 135.6 131.0 

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

 Percent change from previous quarter at annual rate(5) 

2005 I 3.0 3.7 0.7 3.0 1.1 0.0 9.1 3.4 

 II -0.3 3.3 3.6 0.7 -3.1 1.0 5.1 2.6 

 III 4.9 5.5 0.6 6.2 0.7 1.3 7.1 3.5 

 IV -1.1 1.0 2.1 2.9 -0.5 4.0 3.1 3.7 

 ANNUAL 2.0 3.6 1.6 4.0 0.6 2.0 4.9 3.1 

2006 I 2.5 5.5 2.9 7.2 5.1 4.6 0.0 2.8 

 II 0.8 2.5 1.7 -0.4 -5.1 -1.2 10.7 3.3 

 III -1.5 0.6 2.2 1.6 -1.6 3.1 0.5 2.1 

 IV 1.2 2.6 1.4 11.4 13.8 10.1 -12.4 0.8 

 ANNUAL 1.0 3.1 2.1 3.9 0.6 2.9 2.9 2.9 

2007 I 0.2 0.2 0.0 5.5 1.6 5.3 2.1 4.1 

 II 3.6 4.4 0.8 2.4 -3.3 -1.1 7.7 2.2 

 III r6.5 5.7 r-0.7 r4.4 r2.4 -2.0 r4.1 r0.3 

 IV 0.6 0.2 -0.5 2.8 -1.4 2.2 2.3 2.2 

 ANNUAL 1.6 2.3 0.7 4.8 1.9 3.1 0.8 2.2 

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

 Percent change from corresponding quarter of previous year 

2005 I 2.5 3.8 1.2 5.0 1.9 2.4 4.1 3.1 

 II 1.5 3.5 2.0 3.8 0.9 2.3 3.6 2.8 

 III 2.4 3.9 1.5 4.0 0.3 1.6 5.8 3.2 

 IV 1.6 3.4 1.7 3.2 -0.5 1.6 6.1 3.3 

 ANNUAL 2.0 3.6 1.6 4.0 0.6 2.0 4.9 3.1 

2006 I 1.5 3.8 2.3 4.2 0.5 2.7 3.8 3.1 

 II 1.7 3.6 1.8 3.9 0.0 2.2 5.1 3.3 

 III 0.2 2.4 2.2 2.8 -0.6 2.6 3.5 3.0 

 IV 0.7 2.8 2.1 4.8 2.8 4.1 -0.6 2.2 

 ANNUAL 1.0 3.1 2.1 3.9 0.6 2.9 2.9 2.9 

2007 I 0.2 1.5 1.3 4.4 1.9 4.3 -0.1 2.6 

 II 0.8 1.9 1.1 5.2 2.4 4.3 -0.8 2.3 

 III r2.8 3.2 r0.4 5.9 r3.4 3.0 r0.1 1.8 

 IV 2.7 2.6 -0.1 3.8 -0.2 1.1 4.0 2.2 

 ANNUAL 1.6 2.3 0.7 4.8 1.9 3.1 0.8 2.2 

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

See footnotes following Table 6. February 6, 2008 

r=revised Source: Bureau of Labor Statistics 
11 

Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs, 

and prices, seasonally adjusted 

 Real 

 Year Output per Hours Compensa- compensa- Unit Unit non- Implicit 

 and hour of of all tion per tion per labor labor pay- price 

 quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4) 

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

 Indexes 1992=100 

2005 I 133.4 157.4 118.0 160.3 119.5 120.2 129.6 123.6 

 II 133.5 158.6 118.8 160.9 118.8 120.5 131.3 124.5 

 III 135.0 160.8 119.1 163.2 118.8 120.9 133.7 125.6 

 IV 134.5 161.2 119.8 164.2 118.6 122.1 134.8 126.8 

 ANNUAL 134.1 159.5 118.9 162.1 118.9 120.9 132.4 125.1 

2006 I 135.3 163.4 120.8 167.1 120.1 123.5 135.0 127.7 

 II 135.6 164.4 121.2 167.0 118.6 123.2 138.7 128.9 

 III 135.0 164.7 122.0 167.5 118.0 124.0 138.6 129.4 

 IV 135.6 165.7 122.2 172.4 122.1 127.1 133.6 129.5 

 ANNUAL 135.4 164.5 121.5 168.5 r119.7 124.5 136.5 128.9 

2007 I 135.9 165.9 122.1 174.9 122.7 128.7 133.9 130.6 

 II 136.6 167.6 122.7 175.4 121.2 128.4 136.3 131.3 

 III r138.6 r169.9 r122.6 r177.1 r121.9 r127.8 r137.5 r131.3 

 IV 139.2 170.1 122.2 178.8 121.8 128.4 137.8 131.9 

 ANNUAL 137.6 168.4 122.4 176.5 121.9 128.3 136.4 131.3 

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

 Percent change from previous quarter at annual rate(5) 

2005 I 3.7 3.9 0.2 3.6 1.6 -0.1 10.4 3.8 

 II 0.3 3.2 2.9 1.5 -2.4 1.2 5.1 2.7 

 III 4.4 5.6 1.1 5.7 0.2 1.3 7.8 3.8 

 IV -1.4 0.9 2.4 2.6 -0.8 4.1 3.2 3.7 

 ANNUAL 1.9 3.6 1.6 4.0 0.7 2.0 5.5 3.4 

2006 I 2.5 5.7 3.1 7.2 5.1 4.6 0.5 3.0 

 II 0.8 2.4 1.6 -0.2 -5.0 -1.0 11.5 3.7 

 III -1.6 0.8 2.4 1.3 -1.8 2.9 -0.4 1.6 

 IV 1.8 2.6 0.8 12.2 14.6 10.3 -13.6 0.3 

 ANNUAL 1.0 3.2 2.2 3.9 0.6 2.9 3.1 3.0 

2007 I 0.7 0.3 -0.3 5.9 2.0 5.2 1.0 3.6 

 II 2.2 4.2 2.0 1.0 -4.7 -1.1 7.4 2.1 

 III r6.0 r5.6 r-0.3 r4.0 r2.0 r-1.9 r3.4 r0.1 

 IV 1.8 0.4 -1.5 3.9 -0.3 2.1 1.0 1.6 

 ANNUAL 1.6 2.3 0.7 4.8 1.8 3.1 0.0 1.9 

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

 Percent change from corresponding quarter of previous year 

2005 I 2.5 3.8 1.4 4.9 1.8 2.3 4.8 3.3 

 II 1.4 3.4 2.0 3.9 0.9 2.5 4.3 3.2 

 III 2.2 3.8 1.5 4.0 0.3 1.7 6.4 3.5 

 IV 1.7 3.4 1.7 3.3 -0.4 1.6 6.6 3.5 

 ANNUAL 1.9 3.6 1.6 4.0 0.7 2.0 5.5 3.4 

2006 I 1.4 3.8 2.4 4.2 0.5 2.8 4.1 3.3 

 II 1.5 3.6 2.0 3.8 -0.2 2.2 5.7 3.5 

 III 0.1 2.4 2.4 2.7 -0.7 2.6 3.6 3.0 

 IV 0.9 2.8 2.0 5.0 3.0 4.1 -0.9 2.2 

 ANNUAL 1.0 3.2 2.2 3.9 0.6 2.9 3.1 3.0 

2007 I 0.4 1.5 1.1 4.7 2.2 4.3 -0.8 2.3 

 II 0.7 2.0 1.2 5.0 2.3 4.2 -1.7 1.9 

 III r2.6 3.2 0.5 r5.7 3.3 3.0 r-0.8 1.5 

 IV 2.6 2.6 0.0 3.7 -0.3 1.0 3.2 1.8 

 ANNUAL 1.6 2.3 0.7 4.8 1.8 3.1 0.0 1.9 

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

See footnotes following Table 6. February 6, 2008 

r=revised Source: Bureau of Labor Statistics 
12 

Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs, 

seasonally adjusted 

 Real 

 Year Output per Hours Compensa- compensa- Unit 

 and hour of of all tion per tion per labor 

 quarter all persons Output persons hour (1) hour (2) costs 

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

 Indexes 1992=100 

2005 I 168.3 142.7 84.8 166.2 123.9 98.7 

 II 170.9 143.8 84.1 167.8 123.9 98.2 

 III 172.4 144.5 83.8 170.2 124.0 98.7 

 IV 173.7 147.3 84.8 168.8 121.9 97.2 

 ANNUAL 171.3 144.6 84.4 168.3 123.4 98.2 

2006 I 175.4 149.5 85.2 172.6 124.1 98.4 

 II 177.0 151.6 85.6 170.1 120.8 96.1 

 III 179.8 153.4 85.3 170.7 120.2 94.9 

 IV 180.7 152.6 84.4 176.4 125.0 97.6 

 ANNUAL 178.2 151.7 85.1 172.4 r122.5 96.8 

2007 I 181.5 152.9 84.3 180.2 126.4 99.3 

 II 182.6 154.6 84.7 179.6 124.2 98.4 

 III r184.4 r156.1 r84.7 r180.1 r123.9 r97.7 

 IV 185.5 155.3 83.7 181.9 123.9 98.1 

 ANNUAL 183.5 154.7 84.3 180.4 124.6 98.3 

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

 Percent change from previous quarter at annual rate(5) 

2005 I 4.9 4.6 -0.3 1.0 -0.9 -3.7 

 II 6.3 3.1 -3.0 4.0 0.0 -2.2 

 III 3.5 2.1 -1.4 5.6 0.1 2.1 

 IV 3.1 7.9 4.6 -3.1 -6.4 -6.0 

 ANNUAL 4.8 3.5 -1.2 4.2 0.8 -0.6 

2006 I 4.0 6.0 1.9 9.4 7.2 5.1 

 II 3.7 5.7 2.0 -5.8 -10.2 -9.1 

 III 6.5 4.8 -1.6 1.4 -1.8 -4.8 

 IV 2.0 -2.1 -4.0 14.2 16.6 12.0 

 ANNUAL 4.0 4.9 0.9 2.5 -0.8 -1.5 

2007 I 1.7 0.9 -0.8 8.9 4.8 7.0 

 II 2.4 4.4 2.0 -1.4 -6.9 -3.7 

 III r4.0 r3.9 r-0.1 r1.0 r-0.8 r-2.9 

 IV 2.5 -1.9 -4.3 4.2 -0.1 1.7 

 ANNUAL 2.9 2.0 -1.0 4.6 1.7 1.6 

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

 Percent change from corresponding quarter of previous year 

2005 I 4.4 3.1 -1.2 6.0 2.9 1.5 

 II 5.1 3.4 -1.6 5.0 2.1 0.0 

 III 5.2 3.3 -1.9 4.0 0.3 -1.1 

 IV 4.4 4.4 0.0 1.8 -1.8 -2.5 

 ANNUAL 4.8 3.5 -1.2 4.2 0.8 -0.6 

2006 I 4.2 4.7 0.5 3.9 0.1 -0.3 

 II 3.6 5.4 1.8 1.3 -2.5 -2.1 

 III 4.3 6.1 1.7 0.3 -3.0 -3.8 

 IV 4.0 3.6 -0.5 4.5 2.5 0.5 

 ANNUAL 4.0 4.9 0.9 2.5 -0.8 -1.5 

2007 I 3.5 2.3 -1.1 4.4 1.9 0.9 

 II 3.1 2.0 -1.1 5.6 2.8 2.4 

 III r2.5 r1.8 r-0.7 r5.5 r3.1 r2.9 

 IV 2.6 1.8 -0.8 3.1 -0.9 0.5 

 ANNUAL 2.9 2.0 -1.0 4.6 1.7 1.6 

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

See footnotes following Table 6. February 6, 2008 

r=revised Source: Bureau of Labor Statistics 
13 

Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs, 

seasonally adjusted 

 Real 

 Year Output per Hours Compensa- compensa- Unit 

 and hour of of all tion per tion per labor 

 quarter all persons Output persons hour (1) hour (2) costs 

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

 Indexes 1992=100 

2005 I 189.8 169.7 89.4 161.4 120.3 85.0 

 II 193.4 171.6 88.8 162.5 120.0 84.0 

 III 196.5 174.5 88.8 165.2 120.4 84.1 

 IV 200.7 180.5 89.9 163.6 118.2 81.5 

 ANNUAL 195.1 174.1 89.2 163.2 119.7 83.6 

2006 I 202.7 182.9 90.3 168.4 121.0 83.1 

 II 205.5 187.1 91.1 165.7 117.7 80.7 

 III 210.1 189.6 90.3 166.4 117.3 79.2 

 IV 211.5 188.9 89.3 173.0 122.5 81.8 

 ANNUAL 207.4 187.2 90.2 168.4 r119.6 81.2 

2007 I 212.3 188.7 88.9 176.5 123.8 83.1 

 II 215.1 192.1 89.3 175.9 121.6 81.8 

 III r217.8 r195.0 r89.5 r176.0 r121.1 r80.8 

 IV 220.3 194.3 88.2 178.3 121.4 80.9 

 ANNUAL 216.4 192.5 89.0 176.7 122.0 81.7 

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

 Percent change from previous quarter at annual rate(5) 

2005 I 4.1 5.5 1.3 0.4 -1.5 -3.6 

 II 7.7 4.7 -2.8 2.7 -1.2 -4.7 

 III 6.6 6.8 0.2 7.0 1.4 0.4 

 IV 8.9 14.5 5.2 -3.8 -7.0 -11.7 

 ANNUAL 5.3 5.0 -0.3 3.8 0.5 -1.4 

2006 I 3.9 5.5 1.5 12.1 9.9 7.9 

 II 5.7 9.4 3.5 -6.1 -10.5 -11.2 

 III 9.3 5.5 -3.5 1.7 -1.5 -6.9 

 IV 2.7 -1.4 -4.1 16.6 19.1 13.5 

 ANNUAL 6.3 7.5 1.1 3.2 -0.1 -2.9 

2007 I 1.6 -0.5 -2.0 8.5 4.5 6.9 

 II 5.2 7.3 2.0 -1.4 -6.9 -6.2 

 III r5.2 r6.3 r1.0 r0.2 r-1.7 r-4.8 

 IV 4.6 -1.5 -5.9 5.2 0.9 0.6 

 ANNUAL 4.3 2.9 -1.4 4.9 2.0 0.6 

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

 Percent change from corresponding quarter of previous year 

2005 I 3.3 3.0 -0.3 6.0 2.9 2.6 

 II 4.8 4.0 -0.8 4.4 1.5 -0.4 

 III 6.2 5.1 -1.0 3.5 -0.2 -2.5 

 IV 6.8 7.8 0.9 1.5 -2.1 -5.0 

 ANNUAL 5.3 5.0 -0.3 3.8 0.5 -1.4 

2006 I 6.8 7.8 1.0 4.3 0.6 -2.3 

 II 6.3 9.0 2.6 2.0 -1.9 -4.0 

 III 6.9 8.7 1.6 0.7 -2.6 -5.8 

 IV 5.4 4.7 -0.7 5.7 3.6 0.3 

 ANNUAL 6.3 7.5 1.1 3.2 -0.1 -2.9 

2007 I 4.8 3.2 -1.5 4.9 2.3 0.1 

 II 4.6 2.6 -1.9 6.1 3.4 1.4 

 III r3.7 r2.8 r-0.8 r5.8 r3.3 r2.0 

 IV 4.1 2.8 -1.3 3.1 -0.9 -1.0 

 ANNUAL 4.3 2.9 -1.4 4.9 2.0 0.6 

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

See footnotes following Table 6. February 6, 2008 

r=revised Source: Bureau of Labor Statistics 
14 

Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs, 

seasonally adjusted 

 Real 

 Year Output per Hours Compensa- compensa- Unit 

 and hour of of all tion per tion per labor 

 quarter all persons Output persons hour (1) hour (2) costs 

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

 Indexes 1992=100 

2005 I 147.3 114.7 77.8 173.3 129.2 117.6 

 II 149.1 115.1 77.2 176.1 130.0 118.1 

 III 149.5 114.2 76.4 177.3 129.2 118.6 

 IV 148.4 114.4 77.1 176.5 127.5 118.9 

 ANNUAL 148.6 114.6 77.1 175.8 129.0 118.3 

2006 I 149.8 116.3 77.6 178.3 128.2 119.0 

 II 150.7 116.8 77.5 175.9 124.9 116.7 

 III 151.6 117.9 77.8 176.4 124.3 116.4 

 IV 152.0 117.1 77.0 180.5 127.9 118.8 

 ANNUAL 151.0 117.0 77.5 177.8 r126.3 117.7 

2007 I 152.4 117.8 77.3 184.8 129.7 121.2 

 II 152.1 118.2 77.7 184.1 127.3 121.1 

 III r153.3 r118.6 r77.3 r185.3 r127.5 r120.8 

 IV 153.0 117.8 77.0 186.4 127.0 121.9 

 ANNUAL 152.7 118.1 77.3 185.2 127.8 121.2 

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

 Percent change from previous quarter at annual rate(5) 

2005 I 6.4 3.3 -2.9 1.8 -0.2 -4.3 

 II 4.9 1.3 -3.4 6.5 2.5 1.6 

 III 1.0 -3.0 -4.0 2.8 -2.6 1.7 

 IV -2.9 0.8 3.8 -1.9 -5.2 1.0 

 ANNUAL 4.8 1.9 -2.7 4.8 1.4 0.0 

2006 I 3.9 6.6 2.7 4.3 2.3 0.4 

 II 2.4 1.7 -0.7 -5.4 -9.9 -7.6 

 III 2.4 4.1 1.7 1.2 -2.0 -1.2 

 IV 1.0 -2.9 -3.9 9.7 12.0 8.6 

 ANNUAL 1.6 2.1 0.5 1.1 -2.1 -0.5 

2007 I 1.2 2.6 1.4 9.8 5.7 8.5 

 II -0.8 1.2 2.1 -1.5 -7.0 -0.6 

 III r3.3 r1.3 r-1.9 r2.5 r0.6 r-0.8 

 IV -0.9 -2.4 -1.5 2.6 -1.6 3.5 

 ANNUAL 1.1 0.9 -0.2 4.1 1.2 3.0 

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

 Percent change from corresponding quarter of previous year 

2005 I 6.3 3.3 -2.8 5.9 2.8 -0.4 

 II 5.8 2.5 -3.1 6.1 3.0 0.2 

 III 4.7 1.2 -3.3 4.9 1.1 0.1 

 IV 2.3 0.6 -1.7 2.3 -1.4 0.0 

 ANNUAL 4.8 1.9 -2.7 4.8 1.4 0.0 

2006 I 1.7 1.4 -0.3 2.9 -0.8 1.2 

 II 1.1 1.5 0.4 -0.1 -3.9 -1.2 

 III 1.4 3.3 1.8 -0.5 -3.8 -1.9 

 IV 2.4 2.3 -0.1 2.3 0.3 -0.1 

 ANNUAL 1.6 2.1 0.5 1.1 -2.1 -0.5 

2007 I 1.7 1.3 -0.4 3.6 1.2 1.9 

 II 0.9 1.2 0.3 4.7 1.9 3.7 

 III r1.1 r0.5 r-0.6 r5.0 r2.6 r3.8 

 IV 0.7 0.7 0.0 3.3 -0.7 2.6 

 ANNUAL 1.1 0.9 -0.2 4.1 1.2 3.0 

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

See footnotes following Table 6. February 6, 2008 

r=revised Source: Bureau of Labor Statistics 
15 

Table 6. Nonfinancial corporate sector: Productivity, hourly compensation, unit labor costs, unit profits, 

and prices, seasonally adjusted 

 Output Hourly Real Unit Total Unit Implicit 

 Year per all- compen- hourly Unit non- unit pro- price 

 and employee Employee sation compen- labor labor costs fits deflator 

 quarter hour Output hours (1) sation(2) costs costs(6) (7) (8) (4) 

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

 Indexes 1992=100 

2005 I 140.3 164.6 117.3 158.0 117.8 112.6 111.5 112.3 151.9 115.9 

 II 141.1 166.8 118.2 158.5 117.0 112.3 111.7 112.1 161.7 116.6 

 III 140.5 166.9 118.8 160.8 117.1 114.4 115.1 114.6 147.5 117.6 

 IV 141.4 169.2 119.7 161.8 116.9 114.5 112.8 114.0 159.5 118.1 

 ANNUAL 140.8 166.9 118.5 159.8 117.2 113.5 112.8 113.3 155.2 117.0 

2006 I 142.4 171.5 120.4 163.8 117.8 115.0 112.5 114.4 164.4 118.8 

 II 141.8 171.5 120.9 163.9 116.4 115.6 114.3 115.2 164.8 119.7 

 III 142.9 173.6 121.5 164.6 115.9 115.2 113.8 114.8 172.6 120.0 

 IV 143.3 174.6 121.8 169.3 119.9 118.1 114.5 117.1 150.0 120.1 

 ANNUAL 142.6 172.8 121.2 165.4 r117.5 116.0 113.8 115.4 162.9 119.6 

2007 I 143.6 175.0 121.9 171.2 120.1 119.2 114.6 118.0 154.3 121.2 

 II 144.3 176.3 122.1 172.1 119.0 119.3 114.8 118.0 158.2 121.6 

 III r145.6 r178.3 r122.4 r173.9 r119.7 r119.4 r114.2 r118.0 r153.6 r121.2 

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

 Percent change from previous quarter at annual rate(5) 

2005 I 0.3 0.3 0.1 2.7 0.7 2.4 6.8 3.6 9.8 4.3 

 II 2.2 5.4 3.1 1.2 -2.6 -1.0 0.5 -0.6 28.4 2.5 

 III -1.6 0.4 2.0 6.1 0.5 7.8 12.7 9.1 -30.8 3.4 

 IV 2.4 5.6 3.1 2.4 -1.0 0.0 -7.6 -2.1 36.9 1.8 

 ANNUAL 1.1 2.7 1.6 3.8 0.5 2.7 3.0 2.8 7.0 3.3 

2006 I 3.1 5.5 2.3 5.2 3.2 2.0 -1.0 1.2 12.7 2.6 

 II -1.8 -0.1 1.7 0.2 -4.6 2.0 6.4 3.1 1.2 2.9 

 III 3.1 5.0 1.9 1.6 -1.5 -1.4 -1.5 -1.5 20.1 1.0 

 IV 1.3 2.4 1.2 11.9 14.3 10.5 2.2 8.3 -42.9 0.3 

 ANNUAL 1.3 3.5 2.2 3.5 0.2 2.2 0.9 1.9 5.0 2.2 

2007 I 0.7 0.9 0.2 4.5 0.6 3.8 0.5 2.9 11.8 3.9 

 II 2.1 2.9 0.8 2.3 -3.5 0.2 0.5 0.3 10.4 1.4 

 III r3.7 r4.6 r0.8 r4.1 r2.2 r0.4 r-2.0 -0.3 r-11.0 r-1.6 

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

 Percent change from corresponding quarter of previous year 

2005 I 2.2 3.3 1.1 4.8 1.7 2.5 1.8 2.3 12.4 3.4 

 II 1.6 3.3 1.7 3.7 0.7 2.1 2.1 2.1 10.9 3.1 

 III -0.1 1.5 1.7 3.8 0.1 4.0 5.4 4.3 -2.1 3.6 

 IV 0.8 2.9 2.1 3.1 -0.6 2.3 2.8 2.4 7.5 3.0 

 ANNUAL 1.1 2.7 1.6 3.8 0.5 2.7 3.0 2.8 7.0 3.3 

2006 I 1.5 4.2 2.6 3.7 0.0 2.2 0.9 1.8 8.2 2.6 

 II 0.5 2.8 2.3 3.4 -0.5 2.9 2.3 2.8 1.9 2.7 

 III 1.7 4.0 2.3 2.3 -1.0 0.6 -1.1 0.2 17.0 2.1 

 IV 1.4 3.2 1.8 4.6 2.6 3.2 1.5 2.7 -5.9 1.7 

 ANNUAL 1.3 3.5 2.2 3.5 0.2 2.2 0.9 1.9 5.0 2.2 

2007 I 0.8 2.1 1.3 4.5 2.0 3.6 1.8 3.2 -6.1 2.0 

 II 1.8 2.8 1.0 5.0 2.2 3.2 0.4 2.4 -4.1 1.6 

 III r1.9 2.7 0.7 r5.6 r3.2 3.6 0.3 2.7 r-11.0 1.0 

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

See footnotes following Table 6. February 6, 2008 

r=revised Source: Bureau of Labor Statistics) 
16 

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. Compensation and hours 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 third quarter of 2007. 

Footnotes, Tables 1-6

(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 1978-2006 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 average 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.