Transmission of material in this release is embargoed until USDL 16-2094 

8:30 a.m. (EDT) Thursday, November 3, 2016 

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

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

PRODUCTIVITY AND COSTS

Third Quarter 2016, Preliminary

Nonfarm business sector labor productivity increased at a 3.1-percent annual rate during the third 

quarter of 2016, the U.S. Bureau of Labor Statistics reported today, as output increased 3.4 percent and 

hours worked increased 0.3 percent. (All quarterly percent changes in this release are seasonally 

adjusted annual rates.) The quarterly increase in nonfarm business sector labor productivity was the first 

increase after three consecutive declines in the measure. From the third quarter of 2015 to the third

quarter of 2016, productivity was unchanged. (See chart 1 and table A.) 

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

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

Unit labor costs in the nonfarm business sector increased 0.3 percent in the third quarter of 2016, 

reflecting a 3.4-percent increase in hourly compensation and a 3.1-percent increase in productivity. Unit 

labor costs increased 2.3 percent over the last four quarters. (See chart 2 and tables A 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 output per hour tend to reduce 

them.

Chart 1. Labor productivity, nonfarm business, all persons, 

2012Q1 – 2016Q3

-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

2012 2013 2014 2015 2016

From previous quarter, annual rate

From same quarter a year ago

Percent change Percent change

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

2012Q1 – 2016Q3

-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

2012 2013 2014 2015 2016

From previous quarter, annual rate

From same quarter a year ago
-2- 

Manufacturing sector labor productivity increased 1.0 percent in the third quarter of 2016, as output 

and hours worked increased 1.1 percent and 0.1 percent, respectively. Output per hour increased 2.5 

percent in the durable goods manufacturing sector, the combined effect of a 1.9-percent increase in 

output and a 0.6-percent decline in hours worked. Productivity decreased 1.1 percent in the nondurable 

goods sector in the third quarter of 2016, following a 4.6-percent second-quarter decrease. Over the last 

four quarters, manufacturing sector productivity increased 0.2 percent, as output was unchanged and 

hours worked declined 0.1 percent. (See tables A, 3, 4, and 5.) Unit labor costs in manufacturing 

increased 2.2 percent in the third quarter of 2016 and rose 2.9 percent from the same quarter a year ago.

Hourly compensation increased 3.2 percent in the third quarter of 2016. 

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 4.) 

Revised measures 

Revised and previous measures for the second quarter of 2016 are shown in tables B and C, covering the 

following major sectors: nonfarm business, business, manufacturing, and nonfinancial corporations. 

In the second quarter of 2016, nonfarm business sector productivity decreased 0.2 percent, rather than 

decreasing 0.6 percent as reported on September 1. The upward revision reflects a 0.5-percentage point 

upward revision to output; hours were unrevised. Unit labor costs increased 3.9 percent during the 

second quarter—rather than increasing 4.3 percent as previously reported—due to the 0.4-percentage 

point upward revision to productivity. In the manufacturing sector, productivity was revised down 

slightly to a decrease of 0.5 percent from a previously-reported decline of 0.4 percent, reflecting small 

downward revisions to both output and hours. Unit labor costs increased 6.8 percent rather than 6.7 

percent.

Second-quarter 2016 measures of productivity and costs were revised for the nonfinancial corporate 

sector. Productivity decreased 2.3 percent rather than 2.1 percent as reported on September 1. Unit 

labor costs increased 6.2 percent rather than the preliminary estimate of 5.9 percent. (See table C.) 

Full historical annual and quarterly measures can be found on the productivity and costs home page: 

www.bls.gov/lpc/#data. 

______________ 

The revised Productivity and Costs news release for third-quarter 2016 is scheduled to be released 

on Tuesday, December 6, 2016 at 8:30 a.m. (EST).
-3- 

Table A. Preliminary third-quarter 2016 measures: percent change from previous quarter at annual rate (Q to Q) and from same quarter a year 

ago (Y to Y)

Sector

 Nonfarm

 Business Business Manufacturing

 Durable

 Manufacturing

 Nondurable

 Manufacturing

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

Labor productivity 3.1 0.0 3.4 -0.1 1.0 0.2 2.5 0.6 -1.1 -0.4

Output 3.4 1.6 3.5 1.7 1.1 0.0 1.9 0.2 0.0 -0.2

Hours worked 0.3 1.7 0.1 1.8 0.1 -0.1 -0.6 -0.4 1.1 0.2

Hourly compensation 3.4 2.3 3.6 2.2 3.2 3.1 3.2 2.7 3.5 3.9

Real hourly compensation 1.7 1.1 1.9 1.0 1.6 1.9 1.5 1.6 1.8 2.7

Unit labor costs 0.3 2.3 0.2 2.2 2.2 2.9 0.7 2.2 4.6 4.3

Table B. Revised and previous measures: second quarter 2016

Sector

 Nonfarm

 Business Business Manufacturing

 Durable

 Manufacturing

 Nondurable

 Manufacturing

Revised Previous Revised Previous Revised Previous Revised Previous Revised Previous

Percent change, annual rate, second quarter 2016

Labor productivity -0.2 -0.6 -0.4 -0.8 -0.5 -0.4 2.4 2.4 -4.6 -4.4

Output 1.6 1.1 1.6 1.2 -1.1 -0.8 0.5 0.7 -2.9 -2.6

Hours worked 1.7 1.7 2.0 2.0 -0.5 -0.4 -1.8 -1.8 1.8 1.9

Hourly compensation 3.7 3.7 3.3 3.3 6.2 6.3 5.4 5.5 8.0 8.0

Real hourly compensation 1.2 1.1 0.7 0.7 3.6 3.7 2.8 2.9 5.3 5.4

Unit labor costs 3.9 4.3 3.7 4.1 6.8 6.7 3.0 3.0 13.2 13.0

Table C. Nonfinancial corporations: revised and previous second-quarter 2016 productivity and cost measures

Labor

productivity Output

Hours

worked

Hourly 

compensation

Real hourly 

compensation

Unit labor 

costs Unit profits

Implicit price 

deflator

Percent change, annual rate, second quarter 2016

Q to Q Revised -2.3 -0.9 1.4 3.7 1.2 6.2 -16.3 1.8

Q to Q Previous -2.1 -0.7 1.4 3.7 1.1 5.9 -17.0 1.9
-4- 

TECHNICAL NOTES

Labor Hours 

Hours 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 wage and salary workers in nonfarm establishments, 

counting a person who is employed by two or more establishments at each place of employment. 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) 

for 2001 forward and data from the BLS Hours at Work survey, conducted for this purpose, 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 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 correct 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.

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 76 percent of the value of GDP in 2015. Nonfarm business, which 

excludes farming, accounted for about 75 percent of GDP in 2015. 

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 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; 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 2015. 

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. 
-5- 

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 

private 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 2009=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 dprweb@bls.gov). 

For a more detailed explanation of methodology see "Technical Information About the Major Sector 

Productivity and Costs Methods" at www.bls.gov/lpc/lpcmethods.pdf. 

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: Labor productivity, hourly compensation, unit labor costs, and prices,

seasonally adjusted.

 Real

 Hourly hourly Unit Implicit

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)

2016 III 3.4 3.5 0.1 3.6 1.9 0.2 2.1 1.0 

 II -0.4 r 1.6 r 2.0 3.3 0.7 3.7 r 0.0 r 2.1 r

 I -0.7 0.8 1.5 -1.1 -0.7 -0.4 1.4 0.4 

2015 ANNUAL 0.8 3.1 2.3 2.8 2.7 2.0 -1.0 0.7 

2015 IV -2.5 0.8 3.4 2.9 2.1 5.5 -6.7 0.1 

 III 2.3 2.1 -0.2 2.9 1.6 0.6 1.3 0.9 

 II 1.5 3.0 1.6 5.1 2.6 3.6 0.0 2.1 

 I 0.7 2.3 1.6 1.6 4.6 0.9 -2.1 -0.4 

2014 ANNUAL 0.6 3.0 2.3 2.6 1.0 2.0 1.0 1.6 

2014 IV -1.8 2.8 4.7 3.3 3.6 5.1 -6.5 -0.1 

 III 3.4 6.4 2.9 3.2 2.3 -0.2 3.3 1.3 

 II 1.8 5.0 3.1 -1.8 -3.8 -3.6 10.4 2.3 

 I -3.6 -2.0 1.6 6.5 4.1 10.4 -8.9 1.5 

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

 Percent change from corresponding quarter of previous year

2016 III -0.1 1.7 1.8 2.2 1.0 2.2 -0.9 0.9 

 II -0.3 r 1.3 r 1.7 2.0 0.9 2.3 r -1.0 r 0.9 

 I 0.1 1.7 1.6 2.5 1.4 2.3 -1.1 0.9 

2015 ANNUAL 0.8 3.1 2.3 2.8 2.7 2.0 -1.0 0.7 

2015 IV 0.5 2.1 1.6 3.1 2.7 2.6 -1.9 0.7 

 III 0.7 2.6 1.9 3.2 3.1 2.5 -1.8 0.6 

 II 0.9 3.6 2.7 3.3 3.3 2.3 -1.4 0.7 

 I 1.0 4.1 3.1 1.5 1.6 0.5 1.1 0.8 

2014 ANNUAL 0.6 3.0 2.3 2.6 1.0 2.0 1.0 1.6 

2014 IV -0.1 3.0 3.1 2.7 1.5 2.8 -0.7 1.3 

 III 1.3 3.6 2.3 2.4 0.6 1.0 2.6 1.7 

 II 0.9 3.1 2.2 1.8 -0.3 0.9 3.1 1.8 

 I 0.4 2.1 1.7 3.7 2.2 3.3 -1.0 1.4 

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

 Indexes 2009=100

2016 III 106.7 120.1 112.5 117.3 104.7 109.9 111.4 110.5 

 II 105.9 r 119.1 r 112.5 r 116.3 r 104.2 r 109.8 r 110.9 r 110.3 r

 I 106.0 118.6 111.9 115.3 104.0 108.8 110.9 109.7 

2015 ANNUAL 106.2 117.6 110.7 114.3 103.4 107.5 111.7 109.3 

2015 IV 106.1 118.3 111.5 115.6 104.2 108.9 110.5 109.6 

 III 106.8 118.1 110.6 114.8 103.7 107.5 112.4 109.5 

 II 106.2 117.5 110.6 114.0 103.3 107.3 112.0 109.3 

 I 105.8 116.6 110.2 112.6 102.6 106.4 112.0 108.7 

2014 ANNUAL 105.4 114.1 108.2 111.1 100.7 105.4 112.9 108.5 

2014 IV 105.6 115.9 109.7 112.1 101.5 106.1 112.6 108.9 

 III 106.1 115.1 108.5 111.2 100.6 104.8 114.5 108.9 

 II 105.2 113.4 107.7 110.4 100.0 104.9 113.6 108.5 

 I 104.8 112.0 106.9 110.9 101.0 105.8 110.8 107.9 

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

See footnotes following Table 6. November 3, 2016

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

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

prices, seasonally adjusted.

 Real

 Hourly hourly Unit Implicit

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)

2016 III 3.1 3.4 0.3 3.4 1.7 0.3 2.5 1.2 

 II -0.2 r 1.6 r 1.7 3.7 1.2 r 3.9 r 0.2 r 2.3 

 I -0.6 0.7 1.4 -0.9 -0.6 -0.3 2.1 0.7 

2015 ANNUAL 0.9 3.1 2.1 2.9 2.8 2.0 -0.4 1.0 

2015 IV -2.4 0.8 3.3 3.1 2.3 5.7 -6.2 0.5 

 III 2.0 1.8 -0.2 2.9 1.5 0.8 1.1 1.0 

 II 1.2 3.1 1.9 4.8 2.2 3.6 -0.1 2.0 

 I 1.1 2.4 1.3 1.8 4.8 0.7 -0.1 0.4 

2014 ANNUAL 0.8 3.0 2.2 2.8 1.1 2.0 1.3 1.7 

2014 IV -1.6 2.7 4.4 3.6 3.9 5.2 -6.3 0.1 

 III 4.2 6.5 2.3 3.9 3.0 -0.2 4.5 1.8 

 II 2.0 5.1 3.0 -1.7 -3.6 -3.7 9.8 1.9 

 I -3.7 -1.8 2.0 6.2 3.8 10.2 -9.2 1.4 

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

 Percent change from corresponding quarter of previous year

2016 III 0.0 1.6 1.7 2.3 1.1 2.3 -0.4 1.2 

 II -0.3 r 1.2 r 1.5 2.2 1.1 2.5 r -0.7 r 1.1 

 I 0.0 1.6 1.6 2.4 1.3 2.4 -0.8 1.0 

2015 ANNUAL 0.9 3.1 2.1 2.9 2.8 2.0 -0.4 1.0 

2015 IV 0.4 2.0 1.6 3.1 2.7 2.7 -1.4 0.9 

 III 0.7 2.5 1.8 3.2 3.1 2.6 -1.4 0.8 

 II 1.2 3.7 2.5 3.5 3.5 2.3 -0.6 1.0 

 I 1.4 4.2 2.7 1.9 2.0 0.5 1.8 1.0 

2014 ANNUAL 0.8 3.0 2.2 2.8 1.1 2.0 1.3 1.7 

2014 IV 0.2 3.1 2.9 2.9 1.7 2.7 -0.6 1.3 

 III 1.6 3.8 2.2 2.6 0.8 1.0 3.0 1.8 

 II 1.0 3.1 2.1 1.9 -0.1 0.9 3.4 2.0 

 I 0.3 2.0 1.7 3.8 2.3 3.4 -0.4 1.8 

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

 Indexes 2009=100

2016 III 106.9 120.1 112.4 117.6 105.0 110.0 111.6 110.7 

 II 106.1 r 119.1 r 112.3 r 116.7 r 104.6 r 109.9 r 110.9 r 110.3 

 I 106.2 118.7 111.8 115.6 104.3 108.9 110.9 109.7 

2015 ANNUAL 106.5 117.8 110.6 114.5 103.6 107.5 111.5 109.2 

2015 IV 106.3 118.5 111.4 115.9 104.4 109.0 110.3 109.5 

 III 107.0 118.2 110.5 115.0 103.8 107.5 112.1 109.4 

 II 106.4 117.7 110.6 114.2 103.4 107.3 111.8 109.1 

 I 106.1 116.8 110.1 112.9 102.9 106.3 111.8 108.6 

2014 ANNUAL 105.5 114.3 108.3 111.2 100.8 105.4 111.9 108.1 

2014 IV 105.9 116.1 109.7 112.4 101.7 106.1 111.8 108.5 

 III 106.3 115.3 108.5 111.4 100.7 104.8 113.7 108.5 

 II 105.2 113.5 107.9 110.3 100.0 104.9 112.4 108.0 

 I 104.7 112.1 107.1 110.8 100.9 105.8 109.8 107.5 

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

See footnotes following Table 6. November 3, 2016

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

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)

2016 III 1.0 1.1 0.1 3.2 1.6 2.2 

 II -0.5 r -1.1 r -0.5 r 6.2 r 3.6 r 6.8 r

 I 1.4 r 0.6 -0.8 -4.8 -4.5 -6.1 r

2015 ANNUAL 0.3 1.2 0.8 2.5 2.4 2.2 

2015 IV -1.1 -0.5 0.6 8.2 7.4 9.5 

 III 3.7 1.9 -1.7 4.4 3.0 0.7 

 II 1.5 0.6 -0.9 5.4 2.9 3.8 

 I -1.7 -1.4 0.3 -1.9 1.0 -0.2 

2014 ANNUAL 0.1 1.7 1.6 2.8 1.1 2.7 

2014 IV -1.1 2.7 3.9 3.7 4.1 4.9 

 III 1.2 2.8 1.6 3.3 2.4 2.0 

 II 1.9 5.3 3.4 -2.6 -4.5 -4.4 

 I 0.9 -0.3 -1.2 10.4 8.0 9.5 

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

 Percent change from corresponding quarter of previous year

2016 III 0.2 0.0 -0.1 3.1 1.9 2.9 

 II 0.8 r 0.2 r -0.6 3.4 2.3 2.6 r

 I 1.3 0.6 -0.7 3.2 2.1 1.8 

2015 ANNUAL 0.3 1.2 0.8 2.5 2.4 2.2 

2015 IV 0.6 0.1 -0.4 4.0 3.5 3.4 

 III 0.6 1.0 0.4 2.9 2.7 2.3 

 II 0.0 1.2 1.2 2.6 2.6 2.6 

 I 0.1 2.4 2.3 0.6 0.7 0.5 

2014 ANNUAL 0.1 1.7 1.6 2.8 1.1 2.7 

2014 IV 0.7 2.6 1.9 3.6 2.4 2.9 

 III 0.5 2.4 1.9 2.4 0.6 1.8 

 II -0.4 1.5 2.0 1.8 -0.3 2.2 

 I -0.5 0.0 0.5 3.3 1.9 3.8 

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

 Indexes 2009=100

2016 III 120.5 129.2 107.2 114.5 102.2 95.0 

 II 120.2 r 128.9 r 107.2 r 113.6 r 101.8 r 94.5 r

 I 120.4 r 129.3 r 107.4 111.9 100.9 93.0 r

2015 ANNUAL 119.6 128.8 107.7 110.7 100.2 92.5 

2015 IV 120.0 129.1 107.6 113.3 102.1 94.4 

 III 120.3 129.2 107.4 111.1 100.3 92.3 

 II 119.3 128.6 107.9 109.9 99.5 92.1 

 I 118.8 128.4 108.1 108.4 98.8 91.3 

2014 ANNUAL 119.2 127.4 106.8 107.9 97.8 90.5 

2014 IV 119.3 128.9 108.0 109.0 98.6 91.3 

 III 119.6 128.0 107.0 108.0 97.6 90.2 

 II 119.3 127.1 106.6 107.1 97.0 89.8 

 I 118.7 125.5 105.7 107.8 98.2 90.8 

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

See footnotes following Table 6. November 3, 2016

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

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)

2016 III 2.5 1.9 -0.6 3.2 1.5 0.7 

 II 2.4 0.5 r -1.8 5.4 r 2.8 r 3.0 

 I -0.4 -0.1 0.2 -6.4 -6.0 -6.0 

2015 ANNUAL 0.0 0.5 0.5 3.0 2.8 2.9 

2015 IV -2.1 -1.4 0.7 9.4 8.5 11.8 

 III 5.1 2.3 -2.7 3.9 2.5 -1.1 

 II 2.2 0.5 -1.7 5.2 2.6 2.9 

 I -4.0 -4.0 0.1 -0.4 2.5 3.8 

2014 ANNUAL 0.7 2.8 2.1 2.4 0.7 1.7 

2014 IV -0.4 1.9 2.3 4.3 4.6 4.7 

 III 0.8 3.7 2.9 3.4 2.5 2.6 

 II 2.1 7.2 4.9 -2.7 -4.6 -4.7 

 I 1.5 0.4 -1.1 10.6 8.2 9.0 

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

 Percent change from corresponding quarter of previous year

2016 III 0.6 0.2 -0.4 2.7 1.6 2.2 

 II 1.2 0.3 -0.9 2.9 1.8 1.7 

 I 1.2 0.3 -0.9 2.9 1.8 1.7 

2015 ANNUAL 0.0 0.5 0.5 3.0 2.8 2.9 

2015 IV 0.2 -0.7 -0.9 4.5 4.0 4.2 

 III 0.7 0.2 -0.5 3.2 3.1 2.5 

 II -0.4 0.5 0.9 3.1 3.1 3.5 

 I -0.4 2.1 2.5 1.1 1.2 1.5 

2014 ANNUAL 0.7 2.8 2.1 2.4 0.7 1.7 

2014 IV 1.0 3.3 2.2 3.8 2.6 2.8 

 III 1.0 3.9 2.9 1.7 -0.1 0.7 

 II 0.3 3.0 2.6 1.3 -0.8 0.9 

 I 0.3 1.0 0.7 2.7 1.3 2.4 

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

 Indexes 2009=100

2016 III 122.9 134.7 109.6 113.1 100.9 92.0 

 II 122.1 r 134.0 r 109.8 r 112.2 r 100.6 r 91.9 r

 I 121.4 133.9 110.3 110.7 99.9 91.2 

2015 ANNUAL 121.1 133.8 110.6 109.8 99.4 90.7 

2015 IV 121.5 133.9 110.2 112.6 101.4 92.6 

 III 122.2 134.4 110.0 110.1 99.4 90.1 

 II 120.7 133.6 110.8 109.0 98.8 90.4 

 I 120.0 133.5 111.2 107.6 98.1 89.7 

2014 ANNUAL 121.0 133.1 110.0 106.7 96.7 88.1 

2014 IV 121.2 134.8 111.2 107.8 97.5 88.9 

 III 121.3 134.2 110.6 106.6 96.4 87.9 

 II 121.1 132.9 109.8 105.8 95.8 87.3 

 I 120.5 130.7 108.5 106.5 97.0 88.4 

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

See footnotes following Table 6. November 3, 2016

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

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)

2016 III -1.1 0.0 1.1 3.5 1.8 4.6 

 II -4.6 r -2.9 r 1.8 r 8.0 5.3 r 13.2 r

 I 4.0 1.4 -2.5 -1.9 -1.5 -5.7 r

2015 ANNUAL 0.5 1.9 1.5 1.7 1.6 1.3 

2015 IV 0.1 0.6 0.5 6.1 5.2 6.0 

 III 1.5 1.4 -0.1 5.5 4.1 4.0 

 II 0.3 0.7 0.4 6.1 3.5 5.8 

 I 1.0 1.8 0.8 -4.7 -1.8 -5.6 

2014 ANNUAL 0.0 0.6 0.6 3.4 1.8 3.5 

2014 IV -2.7 3.7 6.6 3.0 3.4 5.8 

 III 2.6 1.9 -0.7 2.9 2.0 0.3 

 II 2.5 3.3 0.8 -2.6 -4.5 -5.0 

 I 0.3 -1.0 -1.3 10.0 7.6 9.7 

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

 Percent change from corresponding quarter of previous year

2016 III -0.4 -0.2 0.2 3.9 2.7 4.3 

 II 0.2 r 0.1 r -0.1 4.4 3.2 r 4.2 r

 I 1.5 1.0 -0.4 3.9 2.8 2.4 

2015 ANNUAL 0.5 1.9 1.5 1.7 1.6 1.3 

2015 IV 0.7 1.1 0.4 3.2 2.7 2.4 

 III 0.0 1.9 1.9 2.4 2.3 2.4 

 II 0.3 2.0 1.7 1.8 1.7 1.5 

 I 0.8 2.7 1.8 -0.4 -0.3 -1.2 

2014 ANNUAL 0.0 0.6 0.6 3.4 1.8 3.5 

2014 IV 0.7 2.0 1.3 3.2 2.0 2.6 

 III 0.7 1.0 0.2 3.5 1.8 2.8 

 II -0.7 0.2 0.8 2.6 0.5 3.3 

 I -0.9 -0.7 0.2 4.4 2.9 5.3 

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

 Indexes 2009=100

2016 III 112.7 116.6 103.4 116.7 104.2 103.6 

 II 113.0 r 116.6 r 103.2 r 115.7 r 103.7 r 102.4 r

 I 114.4 r 117.5 r 102.7 113.5 102.4 99.3 r

2015 ANNUAL 113.0 116.6 103.2 111.7 101.1 98.8 

2015 IV 113.2 117.0 103.3 114.1 102.8 100.7 

 III 113.2 116.8 103.2 112.4 101.5 99.3 

 II 112.8 116.4 103.2 110.9 100.5 98.3 

 I 112.7 116.2 103.1 109.3 99.6 96.9 

2014 ANNUAL 112.5 114.4 101.7 109.7 99.5 97.6 

2014 IV 112.4 115.7 102.9 110.6 100.1 98.3 

 III 113.2 114.7 101.3 109.7 99.2 96.9 

 II 112.5 114.1 101.5 109.0 98.7 96.9 

 I 111.8 113.2 101.3 109.7 99.9 98.1 

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

See footnotes following Table 6. November 3, 2016

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

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

unit profits, and prices, seasonally adjusted.

 Real

 Hourly hourly Unit Total Implicit

Year Labor compen- compen- Unit nonlabor unit Unit price

and produc- Hours sation sation labor costs costs profits deflator

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

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

 Percent change from previous quarter at annual rate (5)

2016 II -2.3 r -0.9 r 1.4 3.7 1.2 r 6.2 r 2.1 r 4.9 r -16.3 r 1.8 r

 I 1.3 1.9 0.6 -1.9 -1.6 -3.2 -12.1 -6.1 30.7 -2.0 

2015 ANNUAL 0.9 3.2 2.2 2.9 2.8 2.0 0.6 1.5 -6.6 0.3 

2015 IV -0.8 2.7 3.6 1.9 1.1 2.7 13.7 6.1 -37.1 -1.0 

 III 1.1 2.6 1.5 1.9 0.6 0.8 0.7 0.8 0.0 0.7 

 II 1.5 2.4 0.9 3.9 1.4 2.3 0.1 1.6 -17.0 -1.3 

 I -1.2 0.2 1.4 5.8 8.9 7.0 1.2 5.1 -11.6 2.4 

2014 ANNUAL 1.2 3.9 2.7 2.5 0.8 1.3 -0.4 0.7 1.5 0.8 

2014 IV 1.5 4.9 3.4 1.7 2.0 0.2 -1.2 -0.3 -5.5 -1.1 

 III 4.2 7.0 2.7 2.1 1.3 -2.0 -2.1 -2.0 15.0 0.4 

 II 1.1 6.2 5.0 -2.6 -4.5 -3.7 -1.4 -3.0 37.2 2.0 

 I 1.0 2.7 1.6 9.3 6.9 8.1 0.3 5.5 -19.9 1.5 

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

 Percent change from corresponding quarter of previous year

2016 II -0.2 r 1.6 1.8 1.4 0.3 1.6 r 0.7 r 1.3 r -8.9 r -0.2 r

 I 0.8 2.4 1.6 1.4 0.4 0.7 0.2 0.5 -9.1 -0.9 

2015 ANNUAL 0.9 3.2 2.2 2.9 2.8 2.0 0.6 1.5 -6.6 0.3 

2015 IV 0.2 2.0 1.8 3.4 2.9 3.2 3.8 3.4 -17.6 0.2 

 III 0.7 2.5 1.8 3.3 3.2 2.6 0.2 1.8 -8.7 0.2 

 II 1.5 3.6 2.1 3.3 3.3 1.8 -0.5 1.1 -5.5 0.1 

 I 1.4 4.6 3.1 1.7 1.8 0.3 -0.9 -0.1 7.2 0.9 

2014 ANNUAL 1.2 3.9 2.7 2.5 0.8 1.3 -0.4 0.7 1.5 0.8 

2014 IV 1.9 5.2 3.2 2.5 1.3 0.6 -1.1 0.0 4.5 0.7 

 III 1.8 4.8 2.9 2.3 0.6 0.5 -0.7 0.1 6.3 1.0 

 II 0.0 2.8 2.8 1.8 -0.3 1.7 0.5 1.3 2.1 1.4 

 I 0.9 2.9 1.9 3.4 1.9 2.4 -0.2 1.6 -7.0 0.3 

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

 Indexes 2009=100

2016 II 109.7 r 125.6 r 114.5 r 115.4 r 103.4 r 105.2 r 97.9 r 102.7 r 129.8 r 105.5 r

 I 110.3 125.9 114.1 114.3 103.1 103.6 97.3 101.5 135.7 105.1 

2015 ANNUAL 109.9 124.1 112.9 113.9 103.1 103.7 98.1 101.8 140.2 105.8 

2015 IV 110.0 125.3 114.0 114.9 103.5 104.4 100.5 103.1 126.9 105.6 

 III 110.2 124.5 113.0 114.3 103.2 103.7 97.4 101.6 142.5 105.9 

 II 109.9 123.7 112.5 113.8 103.1 103.5 97.2 101.4 142.5 105.7 

 I 109.5 122.9 112.3 112.7 102.7 102.9 97.2 101.0 149.3 106.1 

2014 ANNUAL 108.9 120.3 110.5 110.7 100.3 101.6 97.5 100.2 150.1 105.5 

2014 IV 109.8 122.9 111.9 111.1 100.6 101.2 96.9 99.8 153.9 105.4 

 III 109.4 121.4 111.0 110.7 100.1 101.1 97.2 99.8 156.1 105.7 

 II 108.3 119.4 110.2 110.1 99.8 101.6 97.7 100.3 150.8 105.6 

 I 108.0 117.6 108.9 110.8 100.9 102.6 98.1 101.1 139.3 105.1 

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

See footnotes following Table 6. November 3, 2016

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. Hours and compensation 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 –1.6 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 second quarter of 2016. 

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 1978-2015 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 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.