Chart 1. Output per hour, nonfarm business, all persons, 

2004Q1 – 2009Q2

Percent change

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

From previous quarter, annual rate

From same quarter a year ago

2004 2005 2006 2007 2008 2009 

Chart 2. Unit labor costs, nonfarm business, all persons, 

2004Q1 – 2009Q2

Percent change

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

From previous quarter, annual rate

From same quarter a year ago

2004 2005 2006 2007 2008 2009 

PRODUCTIVITY AND COSTS

Second Quarter 2009, Revised

Nonfarm business sector labor productivity increased at a 6.6 percent annual rate during the second 

quarter of 2009, the U.S. Bureau of Labor Statistics reported today. This was the largest productivity 

increase since the third quarter of 2003, and reflects declines of 1.5 percent in output and 7.6 percent in 

hours worked. (All quarterly percent changes in this release are seasonally adjusted annual rates.) From 

the second quarter of 2008 to the second quarter of 2009, output fell 5.5 percent while hours fell 7.2 

percent, yielding an increase in productivity of 1.9 percent (chart 1, tables A and 2). Nonfarm business 

productivity increased at an annual rate of 2.5 percent from 2000 through 2008. 

Labor productivity, or output per hour, is calculated by dividing an index of real output by an index of 

hours of all persons, including employees, proprietors, and unpaid family workers. 

Unit labor costs in nonfarm businesses fell 5.9 percent in the second quarter of 2009, with the decline 

due entirely to the increase in productivity; hourly compensation increased slightly. Unit labor costs 

declined 1.2 percent over the last four quarters, as a 1.9 percent increase in output per hour was partially 

offset by a 0.7 percent increase in hourly compensation (chart 2, tables A and 2). 

BLS defines 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. 

Transmission of this material is embargoed until

8:30 a.m. (EDT) Wednesday, September 2, 2009 

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

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

USDL-09-1066
-2- 

Productivity increased 6.5 percent in the business sector in the second quarter of 2009. Unit labor costs

decreased 6.0 percent during the second quarter of 2009 (tables A and 1).

Manufacturing sector productivity grew 4.9 percent in the second quarter of 2009, as output fell 9.8 

percent and hours worked decreased 14.0 percent; declines in output and hours were much larger in 

durable goods industries than in nondurable goods industries (tables A, 3, 4 and 5). The productivity 

gain in the manufacturing sector was the largest since the first quarter of 2005. Unit labor costs in 

manufacturing edged up 0.2 percent in the second quarter of 2009 and increased 6.7 percent over the last 

four quarters (tables A and 3). 

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

those used in preparing the business and nonfarm business output series, and these measures are not 

directly comparable. See Technical Notes for further information on data sources (page 4). 

Revised measures

Table B presents previous and revised productivity and related measures for the major sectors: business, 

nonfarm business and manufacturing, for the first and second quarters of 2009. 

In the second quarter of 2009, nonfarm business productivity was revised up by 0.2 percentage point 

from the estimate published on August 11, reflecting a 0.2 percentage point upward revision to output; 

hours were not revised. Unit labor costs were revised down by 0.1 percentage point in the second 

quarter. In the manufacturing sector, productivity was revised down by 0.4 percentage point in the 

second quarter. 

In the first quarter of 2009, nonfarm business productivity was not revised. Unit labor costs fell 5.0 

percent rather than decreasing 2.7 percent as previously reported, due to a 2.3 percent downward 

revision to hourly compensation. In the manufacturing sector, first quarter productivity was unrevised. 

Unit labor costs were revised down by 2.6 percentage points. 

From the first quarter of 1987, unit labor costs, hourly compensation, and real hourly compensation 

were revised in the manufacturing sector and its subsectors. This was the result of addressing a series 

break between 2000 and 2001 in the manufacturing compensation series published on August 11. The 

SIC-based data prior to 2001 have been linked to the NAICS-based series. This revision eliminates the 

break in series at 2001 for the manufacturing sector data based on compensation; percent changes in 

2001 were revised substantially. There were small revisions to percent changes in other years and 

quarters. Because the base year for the indexes (1992) was adjusted, index values for the entire series 

were subject to revision. Revised quarterly and annual series for recent years appear in tables 3-5 and 

revised annual indexes are displayed in appendix tables 1-3. Full historical annual and quarterly 

measures can be found on the productivity and costs home page https://www.bls.gov/lpc/#data. 

___________

The preliminary Productivity and Costs press release for third-quarter 2009 is scheduled to be 

released on Thursday, November 5, 2009 at 8:30 a.m. (EST).
-3- 

Table A. Revised second-quarter 2009 measures, percent change from previous quarter, annual rate (Q to Q) and from same quarter a year ago 

(Y to Y) 

Sector

 Nonfarm

 Business Business Manufacturing

 Manufacturing

 Durables

 Manufacturing

 Nondurables

Q to Q Y to Y Q to Q Y to Y Q to Q Y to Y Q to Q Y to Y Q to Q Y to Y

Productivity 6.6 1.9 6.5 1.9 4.9 -1.4 3.1 -5.2 2.2 -0.2

Output -1.5 -5.5 -1.4 -5.3 -9.8 -15.0 -16.4 -21.1 -3.2 -8.8

Hours -7.6 -7.2 -7.5 -7.1 -14.0 -13.8 -18.9 -16.8 -5.3 -8.6

Hourly compensation 0.3 0.7 0.2 0.6 5.1 5.2 7.9 6.2 1.5 4.1

Real hourly compensation -1.0 1.6 -1.2 1.5 3.7 6.2 6.5 7.2 0.2 5.1

Unit labor costs -5.9 -1.2 -6.0 -1.3 0.2 6.7 4.6 12.0 -0.7 4.2

Table B. Revised and previous measures for: second quarter and first quarter 2009

Sector

 Nonfarm

 Business Business Manufacturing

 Manufacturing

 Durables

 Manufacturing

 Nondurables

Revised Previous Revised Previous Revised Previous Revised Previous Revised Previous

Percent change, annual rate, second quarter 2009 

Productivity 6.6 6.4 6.5 6.3 4.9 5.3 3.1 3.9 2.2 2.0

Output -1.5 -1.7 -1.4 -1.8 -9.8 -9.9 -16.4 -16.5 -3.2 -3.4

Hours -7.6 -7.6 -7.5 -7.5 -14.0 -14.4 -18.9 -19.6 -5.3 -5.3

Hourly compensation 0.3 0.2 0.2 0.1 5.1 5.8 7.9 8.7 1.5 2.0

Real hourly compensation -1.0 -1.1 -1.2 -1.2 3.7 4.4 6.5 7.3 0.2 0.7

Unit labor costs -5.9 -5.8 -6.0 -5.8 0.2 0.5 4.6 4.7 -0.7 0.0

Percent change, annual rate, first quarter 2009 

Productivity 0.3 0.3 0.2 0.2 -2.6 -2.6 -10.7 -10.5 2.1 2.0

Output -8.8 -8.8 -8.7 -8.7 -21.9 -21.8 -31.7 -31.5 -11.2 -11.3

Hours -9.0 -9.0 -8.9 -8.9 -19.8 -19.8 -23.5 -23.5 -13.0 -13.0

Hourly compensation -4.7 -2.4 -4.7 -2.5 -0.4 2.2 0.7 3.3 -1.5 1.2

Real hourly compensation -2.4 -0.1 -2.4 -0.1 2.0 4.6 3.1 5.7 0.9 3.6

Unit labor costs -5.0 -2.7 -4.9 -2.7 2.3 4.9 12.8 15.4 -3.5 -0.7

Table C. Nonfinancial corporations: preliminary second quarter 2009 and revised first quarter 2009 productivity and cost measures

Productivity Output Hours

Hourly 

compensation

Real hourly 

compensation

Unit labor 

costs Unit profits

Implicit price 

deflator

Percent change, annual rate, second quarter 2009

Q to Q 6.2 -2.6 -8.3 1.8 0.4 -4.2 22.5 -1.1

Y to Y 0.0 -7.4 -7.4 1.6 2.5 1.5 -0.4 2.8

Percent change, annual rate, first quarter 2009

Revised -7.3 -17.1 -10.5 -4.7 -2.4 2.9 -5.8 5.3

Previous -6.0 -15.9 -10.5 -2.5 -0.2 3.7 -7.2 5.3
-4- 

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 a chain-type, current-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 77 percent of the value of GDP in 2005. Nonfarm business, 

which excludes farming, accounted for about 76 percent of GDP in 2005. 

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 manufacturing. Nondurables include: food manufacturing; beverage and tobacco 

product manufacturing; 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 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; private 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 

50 percent of the value of GDP in 2005. 
-5- 

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. 
-6- 

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

2007 I 139.0 168.4 121.2 175.2 122.7 126.0 136.7 130.0

 II 140.2 169.8 121.2 176.5 122.4 125.9 139.4 130.9

 III 142.1 171.4 120.6 177.8 122.6 125.1 141.9 131.4

 IV 142.6 172.3 120.8 179.6 122.1 125.9 141.9 131.9

 ANNUAL 141.0 170.5 120.9 177.3 122.4 125.7 140.0 131.0

2008 I 142.7 171.7 120.3 180.3 121.2 126.3 141.7 132.1

 II 143.8 172.2 119.8 181.0 120.4 125.9 143.8 132.5

 III 143.9 170.6 118.6 183.0 119.9 127.2 145.4 134.0

 IV 144.2 167.4 116.1 184.2 123.3 127.7 143.6 133.6

 ANNUAL 143.6 170.5 118.7 182.1 121.1 126.8 143.6 133.0

2009 I 144.3 163.6 113.4 r182.0 r122.6 r126.1 r148.1 134.3

 II r146.6 r163.1 r111.3 r182.0 r122.2 r124.2 r151.2 r134.2

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

 Percent change from previous quarter at annual rate(5)

2007 I 0.9 0.8 -0.1 4.4 0.6 3.5 4.8 4.0

 II 3.5 3.5 0.0 3.1 -1.1 -0.4 8.0 2.8

 III 5.5 3.7 -1.7 3.0 0.6 -2.4 7.4 1.4

 IV 1.6 2.1 0.5 4.3 -1.4 2.6 0.2 1.6

 ANNUAL 1.8 2.2 0.4 4.2 1.3 2.4 3.0 2.6

2008 I 0.2 -1.3 -1.5 1.5 -3.0 1.3 -0.5 0.6

 II 3.1 1.1 -1.9 1.6 -2.8 -1.5 5.9 1.4

 III 0.3 -3.7 -4.0 4.5 -1.6 4.2 4.5 4.3

 IV 0.8 -7.2 -8.0 2.6 12.0 1.8 -4.9 -1.0

 ANNUAL 1.9 0.0 -1.9 2.7 -1.1 0.8 2.6 1.5

2009 I 0.2 -8.7 -8.9 r-4.7 r-2.4 r-4.9 r13.3 2.1

 II r6.5 r-1.4 -7.5 r0.2 -1.2 r-6.0 r8.5 r-0.2

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

 Percent change from corresponding quarter of previous year

2007 I 0.3 1.5 1.1 4.0 1.6 3.7 1.6 2.9

 II 1.0 2.0 0.9 4.4 1.7 3.3 1.9 2.8

 III 3.0 3.0 0.0 4.8 2.4 1.7 3.3 2.4

 IV 2.9 2.5 -0.3 3.7 -0.3 0.8 5.1 2.5

 ANNUAL 1.8 2.2 0.4 4.2 1.3 2.4 3.0 2.6

2008 I 2.7 2.0 -0.7 2.9 -1.2 0.2 3.7 1.6

 II 2.6 1.4 -1.2 2.6 -1.7 0.0 3.2 1.2

 III 1.3 -0.5 -1.7 2.9 -2.2 1.6 2.5 2.0

 IV 1.1 -2.8 -3.9 2.5 1.0 1.4 1.2 1.3

 ANNUAL 1.9 0.0 -1.9 2.7 -1.1 0.8 2.6 1.5

2009 I 1.1 -4.7 -5.7 r0.9 r1.1 r-0.2 r4.5 1.7

 II 1.9 r-5.3 -7.1 r0.6 r1.5 r-1.3 r5.1 1.3

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

See footnotes following Table 6. September 2, 2009

r=revised Source: Bureau of Labor Statistics
-7- 

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

2007 I 138.2 168.8 122.1 174.2 122.1 126.0 138.2 130.5

 II 139.2 170.3 122.4 175.1 121.4 125.8 140.9 131.4

 III 141.1 172.0 121.9 176.3 121.5 125.0 143.3 131.7

 IV 141.8 172.8 121.9 178.5 121.3 125.9 143.0 132.2

 ANNUAL 140.1 171.0 122.1 176.0 121.6 125.7 141.4 131.5

2008 I 141.7 172.0 121.4 179.2 120.5 126.4 142.5 132.3

 II 142.8 172.6 120.8 179.8 119.6 125.9 144.9 132.9

 III 142.8 170.8 119.6 181.8 119.1 127.3 146.6 134.4

 IV 143.1 167.5 117.0 183.1 122.6 128.0 145.3 134.3

 ANNUAL 142.6 170.7 119.7 181.0 120.4 126.9 144.8 133.5 

2009 I 143.2 163.7 114.3 r180.9 r121.9 r126.3 r150.5 135.2

 II r145.5 r163.1 r112.1 r181.1 r121.5 r124.4 r153.5 r135.1

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

 Percent change from previous quarter at annual rate(5)

2007 I 1.2 0.9 -0.3 4.7 0.8 3.5 3.9 3.6

 II 2.8 3.7 0.9 2.0 -2.1 -0.7 8.1 2.7

 III 5.5 3.9 -1.5 2.7 0.3 -2.7 7.0 1.1

 IV 2.0 1.8 -0.2 5.0 -0.7 3.0 -0.9 1.4

 ANNUAL 1.8 2.3 0.5 4.2 1.3 2.3 2.4 2.3

2008 I -0.1 -1.7 -1.6 1.7 -2.8 1.7 -1.5 0.5

 II 3.1 1.3 -1.7 1.3 -3.0 -1.8 6.9 1.6

 III -0.1 -4.0 -3.9 4.5 -1.6 4.6 4.7 4.6

 IV 0.8 -7.6 -8.3 2.9 12.3 2.0 -3.5 -0.2

 ANNUAL 1.8 -0.1 -1.9 2.8 -1.0 1.0 2.4 1.5

2009 I 0.3 -8.8 -9.0 r-4.7 r-2.4 r-5.0 r15.2 2.7

 II r6.6 r-1.5 -7.6 r0.3 r-1.0 r-5.9 r8.2 r-0.3

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

 Percent change from corresponding quarter of previous year

2007 I 0.5 1.5 0.9 4.3 1.8 3.7 1.0 2.7

 II 1.1 2.1 1.1 4.3 1.6 3.1 1.3 2.4

 III 2.9 3.2 0.2 4.6 2.2 1.6 2.8 2.1

 IV 2.8 2.6 -0.3 3.6 -0.4 0.7 4.5 2.2

 ANNUAL 1.8 2.3 0.5 4.2 1.3 2.3 2.4 2.3

2008 I 2.5 1.9 -0.6 2.9 -1.3 0.3 3.1 1.4

 II 2.6 1.3 -1.3 2.7 -1.5 0.1 2.8 1.1

 III 1.2 -0.7 -1.9 3.1 -2.0 1.9 2.3 2.0

 IV 0.9 -3.0 -4.0 2.6 1.0 1.6 1.6 1.6

 ANNUAL 1.8 -0.1 -1.9 2.8 -1.0 1.0 2.4 1.5

2009 I 1.0 -4.8 -5.8 r0.9 r1.1 r-0.1 r5.6 2.2

 II r1.9 r-5.5 r-7.2 r0.7 r1.6 r-1.2 r5.9 1.7

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

See footnotes following Table 6. September 2, 2009

r=revised Source: Bureau of Labor Statistics
-8- 

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

2007 I 176.9 148.0 83.7 r172.9 r121.1 r97.7

 II 178.2 149.3 83.8 r172.9 r119.9 r97.0

 III 180.1 150.3 83.4 r172.9 r119.2 r96.0

 IV 181.6 150.4 82.8 r175.6 r119.4 r96.7

 ANNUAL 179.2 149.5 83.4 r173.6 r119.9 r96.9

2008 I 182.8 149.9 82.0 r175.7 r118.1 r96.1

 II 181.6 148.0 81.5 r176.9 r117.6 r97.4

 III 180.3 144.4 80.1 r178.8 r117.1 r99.2

 IV 178.1 137.2 77.0 r183.9 r123.1 r103.2

 ANNUAL 180.7 144.9 80.2 r178.7 r118.9 r98.9

2009 I r176.9 r129.0 72.9 r183.7 r123.7 r103.8

 II r179.1 r125.7 r70.2 r186.0 r124.9 r103.9

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

 Percent change from previous quarter at annual rate(5)

2007 I 3.7 1.8 -1.9 8.2 4.2 4.3

 II 3.0 3.4 0.4 0.0 -4.1 -3.0

 III 4.4 2.7 -1.6 0.1 -2.2 -4.1

 IV 3.3 0.3 -2.9 6.5 0.7 3.1

 ANNUAL 3.2 1.3 -1.8 4.3 1.4 1.1

2008 I 2.6 -1.2 -3.7 0.1 -4.3 -2.5

 II -2.5 -5.2 -2.7 2.8 -1.6 5.4

 III -2.9 -9.3 -6.5 4.3 -1.7 7.5

 IV -4.7 -18.4 -14.4 12.0 22.2 17.5

 ANNUAL 0.8 -3.1 -3.9 3.0 r-0.8 2.1

2009 I -2.6 r-21.9 -19.8 r-0.4 r2.0 r2.3

 II r4.9 r-9.8 r-14.0 r5.1 r3.7 r0.2

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

 Percent change from corresponding quarter of previous year

2007 I 2.5 0.4 -2.0 4.3 1.9 1.8

 II 3.3 1.3 -2.0 4.9 2.1 1.5

 III 3.3 1.6 -1.6 4.5 2.1 1.2

 IV 3.6 2.0 -1.5 3.6 -0.4 0.0

 ANNUAL 3.2 1.3 -1.8 4.3 1.4 1.1

2008 I 3.3 1.3 -2.0 1.6 -2.5 -1.7

 II 1.9 -0.9 -2.7 2.3 -1.9 0.4 

 III 0.1 -3.9 -4.0 3.4 -1.8 3.3

 IV -1.9 -8.7 -7.0 4.7 3.1 6.7

 ANNUAL 0.8 -3.1 -3.9 3.0 r-0.8 2.1

2009 I -3.2 -13.9 -11.1 r4.6 r4.8 r8.0

 II r-1.4 -15.0 r-13.8 r5.2 r6.2 r6.7

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

See footnotes following Table 6. September 2, 2009

r=revised Source: Bureau of Labor Statistics
-9- 

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

2007 I 204.1 180.4 88.4 r168.0 r117.7 r82.3

 II 206.9 183.0 88.5 r167.3 r116.0 r80.9

 III 209.7 185.0 88.2 r167.5 r115.5 r79.9

 IV 212.9 185.7 87.2 r170.1 r115.6 r79.9

 ANNUAL 208.4 183.5 88.1 r168.2 r116.2 r80.7

2008 I 213.6 185.3 86.8 r169.5 r113.9 r79.4

 II 211.1 181.8 86.1 r171.2 r113.8 r81.1

 III 212.2 178.1 83.9 r173.7 r113.8 r81.8

 IV 204.3 165.1 80.8 r178.1 r119.2 r87.2

 ANNUAL 210.4 177.6 84.4 r173.0 r115.1 r82.2

2009 I r198.6 r150.0 75.6 r178.4 r120.1 r89.8

 II r200.1 r143.5 r71.7 r181.8 r122.0 r90.9

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

 Percent change from previous quarter at annual rate(5)

2007 I 4.2 1.2 -2.9 r10.1 6.0 5.6

 II 5.6 6.0 0.4 -1.7 -5.7 -6.9

 III 5.6 4.4 -1.1 0.4 -1.9 -4.9

 IV 6.3 1.4 -4.5 6.3 0.5 0.1

 ANNUAL 4.0 1.8 -2.1 4.7 1.8 0.7

2008 I 1.2 -0.9 -2.0 -1.4 -5.7 -2.5

 II -4.6 -7.3 -2.9 4.1 -0.4 9.1

 III 2.2 -7.9 -9.9 r5.9 -0.2 3.6

 IV -14.2 -26.2 -14.1 10.5 20.6 28.8

 ANNUAL 0.9 -3.3 -4.2 2.8 -1.0 1.9

2009 I r-10.7 r-31.7 -23.5 r0.7 r3.1 r12.8

 II r3.1 r-16.4 r-18.9 r7.9 r6.5 r4.6

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

 Percent change from corresponding quarter of previous year

2007 I 2.6 0.3 -2.3 4.9 2.4 2.2

 II 4.1 1.4 -2.6 5.3 2.6 1.2

 III 4.0 2.3 -1.6 5.0 2.7 1.0

 IV 5.4 3.2 -2.1 3.7 -0.3 -1.6

 ANNUAL 4.0 1.8 -2.1 4.7 1.8 0.7

2008 I 4.6 2.7 -1.8 0.9 -3.2 -3.6

 II 2.0 -0.7 -2.6 2.3 -1.9 0.3

 III 1.2 -3.7 -4.9 3.7 -1.5 2.5

 IV -4.1 -11.1 -7.3 4.7 3.1 9.1

 ANNUAL 0.9 -3.3 -4.2 2.8 -1.0 1.9

2009 I r-7.0 -19.0 -12.9 r5.3 r5.5 r13.2

 II r-5.2 -21.1 r-16.8 r6.2 r7.2 r12.0

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

See footnotes following Table 6. September 2, 2009

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

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

2007 I 151.3 115.9 76.6 r179.7 r125.9 r118.8

 II 151.4 116.0 76.7 r181.2 r125.6 r119.7

 III 152.6 116.3 76.2 r180.9 r124.7 r118.5

 IV 152.3 116.0 76.2 r184.1 r125.1 r120.8

 ANNUAL 151.9 116.1 76.4 r181.5 r125.3 r119.5

2008 I 154.3 115.6 74.9 r185.2 r124.5 r120.0

 II 154.2 114.8 74.4 r185.3 r123.2 r120.2

 III 150.1 111.6 74.4 r186.3 r122.1 r124.1

 IV 152.3 108.7 71.4 r192.8 r129.1 r126.6

 ANNUAL 152.7 112.7 73.8 r187.4 r124.6 r122.7

2009 I r153.1 r105.6 69.0 r192.1 r129.4 r125.5

 II r153.9 r104.7 68.0 r192.9 r129.5 r125.3

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

 Percent change from previous quarter at annual rate(5)

2007 I 2.4 2.4 0.0 4.9 1.1 2.4

 II 0.3 0.7 0.4 3.3 -0.9 3.0

 III 3.4 0.8 -2.5 -0.6 -2.9 -3.9

 IV -0.9 -0.9 0.0 7.1 1.3 8.0

 ANNUAL 2.0 0.9 -1.1 3.6 0.8 1.6

2008 I 5.4 -1.4 -6.5 2.6 -1.9 -2.7

 II -0.4 -2.8 -2.5 0.2 r-4.0 0.6

 III -10.2 -10.6 -0.5 2.1 -3.8 13.7

 IV 6.0 -9.9 -15.0 14.7 25.2 8.2

 ANNUAL 0.6 -2.9 -3.4 3.3 -0.6 2.7

2009 I r2.1 r-11.2 -13.0 r-1.5 r0.9 r-3.5

 II r2.2 r-3.2 -5.3 r1.5 r0.2 r-0.7

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

 Percent change from corresponding quarter of previous year

2007 I 2.3 0.7 -1.6 3.4 0.9 1.1

 II 2.1 1.2 -0.9 4.1 1.4 2.0

 III 2.5 0.9 -1.6 3.4 1.1 0.9

 IV 1.3 0.8 -0.5 3.7 -0.4 2.3

 ANNUAL 2.0 0.9 -1.1 3.6 0.8 1.6

2008 I 2.0 -0.2 -2.2 3.1 -1.1 1.0

 II 1.9 -1.1 -2.9 2.3 -1.9 0.4

 III -1.7 -4.0 -2.4 3.0 -2.1 4.7

 IV 0.0 -6.3 -6.3 4.8 3.2 4.8

 ANNUAL 0.6 -2.9 -3.4 3.3 -0.6 2.7

2009 I -0.8 -8.7 -8.0 r3.7 r3.9 r4.6

 II -0.2 r-8.8 -8.6 r4.1 r5.1 r4.2

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

See footnotes following Table 6. September 2, 2009

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

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

2007 I 143.5 175.1 122.0 164.2 115.0 114.4 123.1 116.8 171.2 121.8

 II 144.5 176.5 122.1 165.2 114.6 114.4 124.9 117.2 171.8 122.2

 III 144.1 175.8 122.0 166.2 114.5 115.3 127.4 118.6 155.6 122.0

 IV 145.9 178.5 122.3 168.3 114.4 115.3 127.9 118.7 149.9 121.6

 ANNUAL 144.5 176.5 122.1 166.0 114.6 114.9 125.8 117.8 162.1 121.9

2008 I 145.0 176.9 122.0 168.6 113.4 116.3 129.1 119.8 133.0 121.0

 II 147.4 178.8 121.3 169.7 112.9 115.1 129.2 118.9 134.7 120.4

 III 148.6 178.4 120.1 171.8 112.5 115.6 129.8 119.4 145.3 121.8

 IV 148.0 174.6 117.9 173.7 116.3 117.3 134.1 121.8 129.5 122.5

 ANNUAL 147.2 177.2 120.3 170.9 113.7 116.1 130.5 120.0 135.7 121.4

2009 I r145.3 r166.6 114.7 r171.6 r115.6 r118.1 r139.1 r123.8 r127.5 r124.1

 II 147.5 165.5 112.2 172.4 115.7 116.9 138.7 122.7 134.2 123.8

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

 Percent change from previous quarter at annual rate(5)

2007 I -0.2 0.2 0.4 4.3 0.4 4.5 7.5 5.3 -10.2 3.2

 II 2.8 3.2 0.4 2.5 -1.6 -0.3 5.8 1.4 1.5 1.4

 III -1.1 -1.5 -0.4 2.3 -0.1 3.4 8.2 4.8 -32.7 -0.7

 IV 5.3 6.2 0.9 5.3 -0.4 0.0 1.5 0.5 -13.8 -1.3

 ANNUAL 1.0 1.7 0.7 3.6 0.8 2.6 5.8 3.5 -9.9 1.7

2008 I -2.7 -3.6 -1.0 0.7 -3.7 3.5 3.9 3.6 -38.0 -1.9

 II 6.9 4.4 -2.4 2.6 -1.8 -4.0 0.5 -2.7 5.0 -2.0

 III 3.2 -0.8 -3.9 4.9 -1.2 1.6 1.8 1.6 35.5 4.8

 IV -1.4 -8.3 -6.9 4.6 14.1 6.1 13.9 8.3 -37.0 2.4

 ANNUAL 1.9 0.4 -1.5 3.0 -0.8 1.1 3.7 1.8 -16.3 -0.4

2009 I r-7.3 r-17.1 -10.5 r-4.7 r-2.4 r2.9 r15.8 r6.6 r-5.8 5.3

 II 6.2 -2.6 -8.3 1.8 0.4 -4.2 -1.3 -3.3 22.5 -1.1

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

 Percent change from corresponding quarter of previous year

2007 I 0.3 1.4 1.1 3.3 0.8 2.9 5.5 3.7 -3.0 2.8

 II 1.7 2.6 0.9 3.7 1.0 2.0 5.0 2.8 -2.2 2.1

 III 0.5 0.9 0.4 4.0 1.6 3.5 7.0 4.5 -18.7 1.1

 IV 1.6 2.0 0.3 3.6 -0.4 1.9 5.7 3.0 -14.7 0.6

 ANNUAL 1.0 1.7 0.7 3.6 0.8 2.6 5.8 3.5 -9.9 1.7

2008 I 1.0 1.0 0.0 2.7 -1.5 1.7 4.8 2.6 -22.3 -0.6

 II 2.0 1.3 -0.7 2.7 -1.5 0.7 3.5 1.5 -21.6 -1.5

 III 3.1 1.5 -1.6 3.4 -1.8 0.2 1.9 0.7 -6.6 -0.1

 IV 1.4 -2.2 -3.6 3.2 1.6 1.7 4.9 2.6 -13.6 0.8

 ANNUAL 1.9 0.4 -1.5 3.0 -0.8 1.1 3.7 1.8 -16.3 -0.4

2009 I r0.2 r-5.8 -6.0 r1.8 r2.0 r1.6 r7.7 3.4 r-4.1 2.6

 II 0.0 -7.4 -7.4 1.6 2.5 1.5 7.3 3.2 -0.4 2.8

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

See footnotes following Table 6. September 2, 2009

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

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 first

quarter of 2009. 

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 (CPIU). The trend from 1978-2008 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.
-13- 

Appendix table 1.

Manufacturing sector: Productivity, hourly compensation, and unit labor costs

Indexes 1992=100

 Real

 Output per Hours Compensa- compensa- Unit 

 hour of of all tion per tion per labor

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

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

 1987 89.1 92.4 103.8 r80.6 r97.2 r90.5

 1988 90.9 97.2 106.9 r83.5 r97.1 r91.8

 1989 91.9 98.8 107.6 r86.0 r95.9 r93.6

 1990 93.9 98.5 104.9 r90.1 r95.7 r96.0

 1991 96.3 96.8 100.5 r95.5 r97.9 r99.1

 1992 100.0 100.0 100.0 100.0 100.0 100.0

 1993 102.6 103.9 101.3 r102.3 r99.8 r99.7

 1994 106.2 110.1 103.7 r104.8 r100.1 r98.7

 1995 111.0 115.9 104.4 r106.5 r99.3 r95.9

 1996 115.0 119.8 104.2 r108.3 r98.4 r94.1

 1997 121.3 128.7 106.0 r110.9 r98.7 r91.4

 1998 127.9 135.3 105.8 r117.8 r103.4 r92.1

 1999 133.7 140.4 105.1 r123.0 r105.7 r92.0

 2000 139.1 144.2 103.7 r132.5 r110.2 r95.3

 2001 141.2 136.9 96.9 r137.5 r111.2 r97.4

 2002 151.0 136.0 90.1 r145.1 r115.5 r96.1

 2003 160.4 137.3 85.6 r156.7 r122.0 r97.7

 2004 164.0 139.7 85.2 r157.9 r119.7 r96.3

 2005 171.9 144.8 84.3 r163.2 r119.7 r94.9

 2006 173.7 147.5 84.9 r166.4 r118.2 r95.8

 2007 179.2 149.5 83.4 r173.6 r119.9 r96.9

 2008 180.7 144.9 80.2 r178.7 r118.9 r98.9

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

See footnotes following Table 6. September 2, 2009

r=revised Source: Bureau of Labor Statistics

Appendix table 2.

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

Indexes 1992=100

 Real

 Output per Hours Compensa- compensa- Unit 

 hour of of all tion per tion per labor

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

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

 1987 88.5 94.2 106.5 80.7 97.3 r91.1

 1988 90.4 100.0 110.6 82.9 96.5 91.7

 1989 91.1 101.1 110.9 85.4 95.2 93.7

 1990 92.9 99.8 107.4 89.1 94.7 95.9

 1991 94.6 96.0 101.4 94.8 97.2 r100.2

 1992 100.0 100.0 100.0 100.0 100.0 100.0

 1993 103.9 105.4 101.4 r102.0 99.5 98.1

 1994 109.1 114.2 104.7 104.5 99.9 95.8

 1995 115.9 123.3 106.3 105.3 r98.2 90.8

 1996 122.1 131.0 107.3 106.4 96.7 87.2

 1997 130.5 144.1 110.4 108.3 96.3 82.9

 1998 140.6 156.1 111.0 115.3 101.1 82.0

 1999 150.7 166.5 110.5 120.3 103.4 79.8

 2000 158.1 173.6 109.8 r129.8 107.9 82.1

 2001 159.0 162.1 101.9 r133.6 r108.0 r84.0

 2002 171.0 159.9 93.5 r140.1 r111.5 r82.0

 2003 183.2 162.2 88.5 r153.0 r119.1 r83.5

 2004 186.3 165.9 89.1 r152.5 r115.6 r81.9

 2005 196.2 174.5 89.0 r157.2 r115.3 r80.2

 2006 200.4 180.3 90.0 r160.6 r114.1 r80.2

 2007 208.4 183.5 88.1 r168.2 r116.2 r80.7

 2008 210.4 177.6 84.4 r173.0 r115.1 r82.2

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

See footnotes following Table 6. September 2, 2009

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

Appendix table 3.

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

Indexes 1992=100

 Real

 Output per Hours Compensa- compensa- Unit 

 hour of of all tion per tion per labor

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

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

 1987 91.4 91.1 99.7 79.8 96.3 87.4

 1988 93.2 94.5 101.4 83.6 97.2 89.7

 1989 94.0 96.4 102.5 86.3 96.3 r91.8

 1990 96.0 97.1 101.1 91.4 97.1 r95.3

 1991 98.3 97.4 99.1 96.4 98.9 98.1

 1992 100.0 100.0 100.0 100.0 100.0 100.0

 1993 101.2 102.4 101.2 102.7 100.3 101.6

 1994 103.5 105.7 102.1 105.0 100.4 101.5

 1995 106.2 107.7 101.5 108.1 100.9 101.9

 1996 108.4 107.8 99.4 110.8 100.7 102.3

 1997 112.8 112.2 99.5 114.7 102.1 r101.7

 1998 115.8 113.4 97.9 121.0 106.2 104.5

 1999 116.9 113.3 96.9 r126.3 108.5 108.0

 2000 120.7 114.1 94.5 135.4 112.6 112.2

 2001 123.4 110.4 89.4 r143.2 r115.9 r116.0

 2002 130.5 110.7 84.8 r153.2 r121.9 r117.4

 2003 136.7 111.1 81.3 r162.2 r126.3 r118.6

 2004 141.7 112.4 79.4 r166.5 r126.3 r117.5

 2005 148.6 114.7 77.2 r172.5 r126.5 r116.1

 2006 148.9 115.1 77.3 r175.1 r124.3 r117.6

 2007 151.9 116.1 76.4 r181.5 r125.3 r119.5

 2008 152.7 112.7 73.8 r187.4 r124.6 r122.7

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

See footnotes following Table 6. September 2, 2009

r=revised Source: Bureau of Labor Statistics