Transmission of material in this release is embargoed until USDL 15-2124 

8:30 a.m. (EST) Thursday, November 5, 2015 

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 2015, Preliminary

Nonfarm business sector labor productivity increased at a 1.6-percent annual rate during the third

quarter of 2015, the U.S. Bureau of Labor Statistics reported today, as output increased 1.2 percent and 

hours worked decreased 0.5 percent. (All quarterly percent changes in this release are seasonally 

adjusted annual rates.) The decline in hours worked was the first decline in this series since a 4.8-percent 

decline in the third quarter of 2009. From the third quarter of 2014 to the third quarter of 2015, 

productivity increased 0.4 percent, reflecting increases in output and hours worked of 2.3 percent and 

1.9 percent, respectively. (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 1.4 percent in the third quarter of 2015, 

reflecting a 3.0-percent increase in hourly compensation and a 1.6-percent increase in productivity. Unit 

labor costs increased 2.0 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, 

2011Q1 – 2015Q3

-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

2011 2012 2013 2014 2015

From previous quarter, annual rate

From same quarter a year ago

Percent change Percent change

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

2011Q1 – 2015Q3

-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

2011 2012 2013 2014 2015

From previous quarter, annual rate

From same quarter a year ago
-2- 

Nonfarm business sector hours worked declined 0.5 percent in the third quarter of 2015, reflecting a 

decline of 0.9 percent in average weekly hours worked that was partially offset by an increase of 0.5 

percent in employment. The increase in employment—which includes employees, proprietors, and 

unpaid family workers—was the smallest since a 0.3-percent increase in the third quarter of 2010. Over 

the last four quarters, hours worked increased 1.9 percent, employment increased 2.2 percent, and 

average weekly hours worked declined 0.4 percent. 

Manufacturing sector labor productivity increased 4.9 percent in the third quarter of 2015—the 

largest gain since a 6.1-percent increase in the third quarter of 2011—as output increased 2.7 percent 

and hours worked decreased 2.1 percent. Productivity increased 7.3 percent in the durable goods 

manufacturing sector—also the largest gain since the third quarter of 2011, when this series increased 

8.7 percent. Productivity increased 1.3 percent in the nondurable goods sector. (See tables A, 3, 4, and 

5.) Over the last four quarters, manufacturing productivity increased 1.5 percent, as output increased 1.8 

percent and hours increased 0.4 percent. Unit labor costs in manufacturing increased 0.9 percent in the 

third quarter of 2015 and increased 0.5 percent from the same quarter a year ago. (See tables A and 3.) 

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 2015 are shown in tables B and C, covering the 

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

In the second quarter of 2015, nonfarm business sector productivity increased 3.5 percent, rather than 

3.3 percent as reported on September 2. The revised figure reflects a 0.4 percentage point upward 

revision to output which was larger than a 0.1 percentage point upward revision to hours worked. Unit 

labor costs decreased 1.8 percent during the second quarter—rather than decreasing 1.4 percent as 

previously reported—due to both a 0.2 percentage point upward revision to productivity and a 0.1 

percentage point downward revision to hourly compensation. In the manufacturing sector, productivity 

growth was revised down to 2.1 percent from a previous estimate of 2.3 percent, reflecting a small

downward revision to output and a small upward revision to hours. Unit labor costs decreased 2.0 

percent rather than 2.2 percent. 

Second-quarter 2015 measures of productivity and costs were revised for the nonfinancial corporate 

sector. Productivity decreased 0.5 percent rather than 0.6 percent as reported on September 2. Unit 

labor costs increased 2.6 percent rather than increasing 2.8 percent as previously reported. (See table 

C.) 

Complete annual and quarterly data series 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 2015 is scheduled to be released 

on Wednesday, December 2, 2015 at 8:30 a.m. (EST).
-3- 

Table A. Preliminary third-quarter 2015 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 1.6 0.4 2.0 0.5 4.9 1.5 7.3 2.0 1.3 0.4

Output 1.2 2.3 1.5 2.4 2.7 1.8 3.5 1.5 1.8 2.2

Hours worked -0.5 1.9 -0.5 1.9 -2.1 0.4 -3.6 -0.5 0.5 1.8

Hourly compensation 3.0 2.4 3.1 2.4 5.9 1.9 5.8 1.7 6.2 2.5

Real hourly compensation 1.4 2.2 1.5 2.2 4.2 1.8 4.2 1.6 4.5 2.3

Unit labor costs 1.4 2.0 1.1 1.9 0.9 0.5 -1.4 -0.2 4.8 2.1

Table B. Revised and previous measures: second quarter 2015 

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 2015

Labor productivity 3.5 3.3 3.7 3.5 2.1 2.3 2.6 2.8 1.2 1.2

Output 5.1 4.7 5.0 4.6 1.2 1.3 1.2 1.2 1.3 1.4

Hours worked 1.5 1.4 1.2 1.1 -0.8 -0.9 -1.4 -1.6 0.1 0.2

Hourly compensation 1.7 1.8 2.0 2.1 0.0 0.1 -0.3 -0.1 0.7 0.5

Real hourly compensation -1.2 -1.1 -0.9 -0.8 -2.9 -2.8 -3.1 -3.0 -2.3 -2.4

Unit labor costs -1.8 -1.4 -1.6 -1.3 -2.0 -2.2 -2.8 -2.9 -0.5 -0.7

Table C. Nonfinancial corporations: revised and previous second-quarter 2015 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 2015

Q to Q Revised -0.5 0.0 0.4 2.1 -0.8 2.6 8.0 2.4

Q to Q Previous -0.6 -0.2 0.3 2.2 -0.7 2.8 5.6 2.3
-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 2014. Nonfarm business, 

which excludes farming, accounted for about 75 percent of GDP in 2014. 

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 49 percent of the value of GDP in 2014. 

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 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

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: Productivity, hourly compensation, unit labor costs, and prices,

seasonally adjusted

 Real

 Output Compen- compen- Unit Implicit

Year per hour Hours sation sation Unit nonlabor price

and of all of all per hour per hour labor payments deflator

quarter persons Output persons (1) (2) costs (3) (4)

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

 Percent change from previous quarter at annual rate(5)

2015 III 2.0 1.5 -0.5 3.1 1.5 1.1 0.5 0.8 

 II 3.7 r 5.0 r 1.2 r 2.0 r -0.9 r -1.6 r 7.6 r 2.2 

 I -1.3 0.6 1.9 1.3 4.4 2.6 -3.7 -0.1 

2014 ANNUAL 0.6 3.0 2.4 2.6 1.0 2.0 0.6 1.4 

2014 IV -2.4 2.6 5.2 3.0 3.9 5.6 -8.2 -0.6 

 III 2.5 5.5 2.9 2.5 1.3 0.0 2.9 1.2 

 II 2.9 5.7 2.7 -0.9 -3.2 -3.7 10.6 2.3 

 I -3.6 -1.7 2.0 5.9 3.7 9.9 -8.5 1.5 

2013 ANNUAL 0.4 2.0 1.6 1.2 -0.2 0.8 2.4 1.5 

2013 IV 3.4 5.1 1.7 2.1 0.7 -1.2 4.4 1.2 

 III 1.3 3.9 2.5 0.5 -1.8 -0.9 5.3 1.7 

 II 0.6 1.6 1.0 6.3 6.5 5.7 -5.6 0.6 

 I 1.2 2.5 1.3 -8.6 -9.9 -9.7 18.8 1.6 

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

 Percent change from corresponding quarter of previous year

2015 III 0.5 2.4 1.9 2.4 2.2 1.9 -1.1 0.6 

 II 0.6 3.4 r 2.8 2.2 2.1 r 1.6 r -0.5 r 0.7 

 I 0.4 3.6 3.2 1.5 1.5 1.1 0.2 0.7 

2014 ANNUAL 0.6 3.0 2.4 2.6 1.0 2.0 0.6 1.4 

2014 IV -0.2 3.0 3.2 2.6 1.4 2.8 -1.1 1.1 

 III 1.3 3.6 2.3 2.4 0.6 1.1 2.1 1.5 

 II 1.0 3.2 2.2 1.9 -0.2 0.9 2.7 1.7 

 I 0.4 2.2 1.8 3.7 2.2 3.3 -1.3 1.3 

2013 ANNUAL 0.4 2.0 1.6 1.2 -0.2 0.8 2.4 1.5 

2013 IV 1.6 3.3 1.6 -0.1 -1.3 -1.7 5.4 1.3 

 III 0.3 2.0 1.7 2.0 0.5 1.7 0.9 1.3 

 II -0.3 1.2 1.5 2.0 0.6 2.3 0.4 1.5 

 I 0.1 1.4 1.3 1.1 -0.6 1.0 3.1 1.9 

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

 Indexes 2009=100

2015 III 106.4 117.6 110.6 113.8 102.6 107.0 112.6 109.3 

 II 105.8 r 117.2 r 110.7 r 112.9 r 102.3 r 106.7 r 112.4 r 109.1 r

 I 104.9 115.8 110.4 112.4 102.5 107.1 110.4 108.5 

2014 ANNUAL 105.2 113.9 108.3 111.1 100.7 105.6 112.2 108.4 

2014 IV 105.2 115.6 109.9 112.0 101.4 106.5 111.4 108.5 

 III 105.9 114.8 108.5 111.2 100.4 105.0 113.9 108.7 

 II 105.2 113.3 107.7 110.5 100.1 105.0 113.1 108.4 

 I 104.5 111.8 107.0 110.7 100.9 106.0 110.2 107.8 

2013 ANNUAL 104.6 110.6 105.7 108.3 99.7 103.6 111.5 106.9 

2013 IV 105.4 112.2 106.5 109.2 100.0 103.6 112.7 107.4 

 III 104.6 110.9 106.0 108.6 99.9 103.9 111.5 107.1 

 II 104.2 109.8 105.4 108.5 100.3 104.1 110.1 106.6 

 I 104.1 109.4 105.1 106.8 98.7 102.7 111.7 106.4 

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

See footnotes following Table 6. November 5, 2015

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

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

seasonally adjusted

 Real

 Output Compen- compen- Unit Implicit

Year per hour Hours sation sation Unit nonlabor price

and of all of all per hour per hour labor payments deflator

quarter persons Output persons (1) (2) costs (3) (4)

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

 Percent change from previous quarter at annual rate(5)

2015 III 1.6 1.2 -0.5 3.0 1.4 1.4 0.1 0.8 

 II 3.5 r 5.1 r 1.5 r 1.7 r -1.2 r -1.8 r 8.0 r 2.3 r 

 I -1.1 0.5 1.6 1.5 4.6 2.6 -2.2 0.5 

2014 ANNUAL 0.7 3.0 2.3 2.7 1.1 2.0 0.9 1.5 

2014 IV -2.2 2.6 4.9 3.4 4.2 5.7 -8.1 -0.5 

 III 3.1 5.5 2.3 3.2 2.0 0.1 4.1 1.8 

 II 2.8 5.4 2.5 -0.8 -3.1 -3.5 9.5 1.9 

 I -3.5 -1.2 2.3 5.5 3.4 9.3 -8.4 1.3 

2013 ANNUAL 0.0 1.7 1.7 1.1 -0.4 1.1 2.1 1.5 

2013 IV 3.5 5.2 1.7 2.3 0.9 -1.2 5.7 1.7 

 III 1.4 3.5 2.1 0.9 -1.4 -0.5 5.8 2.2 

 II 0.1 1.1 1.1 6.3 6.5 6.2 -5.0 1.2 

 I -0.1 1.7 1.8 -9.2 -10.5 -9.1 16.8 1.2 

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

 Percent change from corresponding quarter of previous year

2015 III 0.4 2.3 1.9 2.4 2.2 2.0 -0.7 0.8 

 II 0.8 r 3.4 r 2.6 2.4 r 2.4 1.6 r 0.3 r 1.0 

 I 0.6 3.5 2.8 1.8 1.9 1.2 0.6 0.9 

2014 ANNUAL 0.7 3.0 2.3 2.7 1.1 2.0 0.9 1.5 

2014 IV 0.0 3.0 3.0 2.8 1.6 2.8 -1.0 1.1 

 III 1.4 3.7 2.2 2.5 0.7 1.1 2.5 1.7 

 II 1.0 3.2 2.2 1.9 -0.1 0.9 2.9 1.8 

 I 0.3 2.1 1.8 3.7 2.3 3.4 -0.7 1.6 

2013 ANNUAL 0.0 1.7 1.7 1.1 -0.4 1.1 2.1 1.5 

2013 IV 1.2 2.9 1.7 -0.1 -1.3 -1.3 5.5 1.6 

 III -0.2 1.6 1.9 1.9 0.3 2.1 0.5 1.4 

 II -0.8 1.0 1.8 1.7 0.3 2.5 -0.1 1.4 

 I -0.2 1.4 1.6 0.8 -0.9 1.0 2.5 1.6 

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

 Indexes 2009=100

2015 III 106.4 117.6 110.5 113.9 102.7 107.1 112.1 109.2 

 II 105.9 r 117.2 r 110.7 r 113.1 r 102.4 r 106.8 r 112.1 r 109.0 r

 I 105.0 115.8 110.2 112.6 102.7 107.2 109.9 108.3 

2014 ANNUAL 105.2 114.0 108.4 111.1 100.7 105.7 111.1 107.9 

2014 IV 105.3 115.6 109.8 112.2 101.6 106.5 110.5 108.2 

 III 105.9 114.9 108.5 111.3 100.5 105.1 112.9 108.3 

 II 105.1 113.4 107.9 110.4 100.0 105.0 111.8 107.8 

 I 104.4 111.9 107.2 110.6 100.8 106.0 109.3 107.4 

2013 ANNUAL 104.4 110.6 105.9 108.2 99.6 103.6 110.1 106.3 

2013 IV 105.3 112.2 106.6 109.1 100.0 103.7 111.7 107.0 

 III 104.4 110.8 106.2 108.5 99.8 104.0 110.2 106.5 

 II 104.0 109.9 105.6 108.3 100.1 104.1 108.6 106.0 

 I 104.0 109.6 105.3 106.6 98.6 102.5 110.0 105.7 

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

See footnotes following Table 6. November 5, 2015

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

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

seasonally adjusted

 Real

 Output Compen- compenYear per hour Hours sation sation Unit

and of all of all per hour per hour labor

quarter persons Output persons (1) (2) costs

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

 Percent change from previous quarter at annual rate(5)

2015 III 4.9 2.7 -2.1 5.9 4.2 0.9 

 II 2.1 r 1.2 r -0.8 r 0.0 r -2.9 r -2.0 r

 I -0.6 -0.5 0.1 -2.2 0.8 -1.6 

2014 ANNUAL 1.3 2.9 1.6 2.7 1.0 1.4 

2014 IV -0.4 4.0 4.4 4.3 5.1 4.7 

 III 2.9 4.4 1.4 2.7 1.5 -0.2 

 II 2.8 6.3 3.4 -1.8 -4.2 -4.4 

 I 2.0 1.0 -1.0 8.7 6.5 6.5 

2013 ANNUAL 0.7 1.5 0.8 0.2 -1.2 -0.5 

2013 IV -0.5 3.4 3.9 -0.3 -1.6 0.2 

 III -0.9 0.6 1.5 1.0 -1.3 1.9 

 II 2.5 0.1 -2.3 4.1 4.3 1.6 

 I 1.1 3.5 2.3 -5.4 -6.7 -6.4 

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

 Percent change from corresponding quarter of previous year

2015 III 1.5 1.8 0.4 1.9 1.8 0.5 

 II 1.0 2.3 1.2 1.2 1.1 0.2 

 I 1.2 3.5 2.3 0.7 0.8 -0.4 

2014 ANNUAL 1.3 2.9 1.6 2.7 1.0 1.4 

2014 IV 1.8 3.9 2.0 3.4 2.2 1.5 

 III 1.8 3.7 1.9 2.2 0.5 0.4 

 II 0.8 2.8 2.0 1.8 -0.2 1.0 

 I 0.8 1.3 0.5 3.3 1.9 2.5 

2013 ANNUAL 0.7 1.5 0.8 0.2 -1.2 -0.5 

2013 IV 0.5 1.9 1.3 -0.2 -1.4 -0.7 

 III 1.1 1.5 0.4 0.9 -0.6 -0.2 

 II 1.0 1.2 0.2 0.4 -0.9 -0.6 

 I 0.1 1.2 1.2 -0.3 -2.0 -0.4 

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

 Indexes 2009=100

2015 III 122.5 131.5 107.4 109.9 99.1 89.7 

 II 121.0 r 130.6 r 108.0 r 108.4 r 98.1 r 89.5 r

 I 120.4 r 130.2 r 108.2 108.4 98.8 90.0 r

2014 ANNUAL 120.0 128.3 106.9 107.9 97.8 89.9 

2014 IV 120.6 130.4 108.2 109.0 98.6 90.4 

 III 120.7 129.1 107.0 107.8 97.4 89.3 

 II 119.8 127.8 106.6 107.1 97.0 89.4 

 I 119.0 125.8 105.7 107.6 98.1 90.4 

2013 ANNUAL 118.5 124.6 105.2 105.0 96.8 88.7 

2013 IV 118.4 125.5 106.0 105.4 96.5 89.0 

 III 118.6 124.5 105.0 105.4 96.9 88.9 

 II 118.8 124.3 104.6 105.2 97.3 88.5 

 I 118.1 124.2 105.2 104.1 96.2 88.2 

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

See footnotes following Table 6. November 5, 2015

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

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

seasonally adjusted

 Real

 Output Compen- compenYear per hour Hours sation sation Unit

and of all of all per hour per hour labor

quarter persons Output persons (1) (2) costs

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

 Percent change from previous quarter at annual rate(5)

2015 III 7.3 3.5 -3.6 5.8 4.2 -1.4 

 II 2.6 r 1.2 -1.4 r -0.3 r -3.1 r -2.8 r

 I -2.3 -2.4 -0.1 -3.4 -0.4 -1.1 

2014 ANNUAL 1.9 4.2 2.3 2.1 0.5 0.2 

2014 IV 0.5 3.9 3.3 5.0 5.9 4.5 

 III 3.2 6.4 3.1 2.3 1.1 -0.9 

 II 3.0 8.7 5.5 -2.6 -5.0 -5.5 

 I 2.6 1.5 -1.1 8.6 6.4 5.8 

2013 ANNUAL 0.7 1.8 1.1 -0.4 -1.8 -1.1 

2013 IV 0.7 5.5 4.8 -2.5 -3.8 -3.1 

 III -0.3 1.4 1.7 1.7 -0.6 2.0 

 II 2.4 -0.3 -2.6 3.5 3.7 1.0 

 I -0.5 3.4 3.9 -6.7 -8.0 -6.2 

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

 Percent change from corresponding quarter of previous year

2015 III 2.0 1.5 -0.5 1.7 1.6 -0.2 

 II 1.0 2.2 1.2 0.9 0.8 -0.1 

 I 1.1 4.0 2.9 0.3 0.3 -0.8 

2014 ANNUAL 1.9 4.2 2.3 2.1 0.5 0.2 

2014 IV 2.3 5.1 2.7 3.2 2.0 0.9 

 III 2.4 5.5 3.0 1.3 -0.4 -1.0 

 II 1.5 4.2 2.7 1.2 -0.9 -0.3 

 I 1.3 2.0 0.7 2.7 1.3 1.4 

2013 ANNUAL 0.7 1.8 1.1 -0.4 -1.8 -1.1 

2013 IV 0.6 2.5 1.9 -1.1 -2.3 -1.6 

 III 1.0 1.7 0.7 0.9 -0.6 -0.1 

 II 0.8 1.1 0.3 -0.1 -1.5 -0.9 

 I 0.6 2.1 1.5 -1.1 -2.8 -1.8 

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

 Indexes 2009=100

2015 III 127.0 140.0 110.3 108.1 97.5 85.2 

 II 124.8 r 138.9 r 111.3 r 106.6 r 96.5 r 85.5 r

 I 124.0 r 138.4 r 111.7 106.7 97.3 86.1 r

2014 ANNUAL 123.9 136.5 110.2 106.5 96.5 86.0 

2014 IV 124.7 139.3 111.7 107.6 97.4 86.3 

 III 124.5 138.0 110.8 106.3 96.0 85.4 

 II 123.6 135.9 110.0 105.7 95.8 85.6 

 I 122.6 133.1 108.5 106.4 97.0 86.8 

2013 ANNUAL 121.6 131.0 107.8 104.3 96.1 85.8 

2013 IV 121.9 132.6 108.8 104.2 95.5 85.5 

 III 121.7 130.8 107.5 104.9 96.4 86.2 

 II 121.8 130.4 107.1 104.5 96.6 85.8 

 I 121.0 130.4 107.8 103.6 95.7 85.6 

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

See footnotes following Table 6. November 5, 2015

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

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

seasonally adjusted

 Real

 Output Compen- compenYear per hour Hours sation sation Unit

and of all of all per hour per hour labor

quarter persons Output persons (1) (2) costs

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

 Percent change from previous quarter at annual rate(5)

2015 III 1.3 1.8 0.5 6.2 4.5 4.8 

 II 1.2 1.3 r 0.1 r 0.7 r -2.3 r -0.5 r

 I 1.3 r 1.7 0.4 0.2 3.2 -1.1 

2014 ANNUAL 1.0 1.5 0.5 3.7 2.0 2.6 

2014 IV -2.1 4.1 6.3 3.1 3.9 5.3 

 III 3.6 2.1 -1.4 3.2 2.1 -0.4 

 II 3.7 3.7 0.0 -0.6 -3.0 -4.2 

 I 1.4 0.4 -0.9 8.8 6.6 7.3 

2013 ANNUAL 0.9 1.1 0.2 1.2 -0.2 0.3 

2013 IV -1.4 1.0 2.4 4.0 2.5 5.4 

 III -1.6 -0.4 1.2 -0.3 -2.6 1.3 

 II 2.1 0.3 -1.8 5.3 5.5 3.1 

 I 3.6 3.3 -0.3 -3.2 -4.6 -6.6 

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

 Percent change from corresponding quarter of previous year

2015 III 0.4 2.2 1.8 2.5 2.3 2.1 

 II 1.0 2.3 1.3 1.8 r 1.7 0.8 r

 I 1.6 2.9 1.3 1.5 1.5 -0.2 r

2014 ANNUAL 1.0 1.5 0.5 3.7 2.0 2.6 

2014 IV 1.6 2.6 0.9 3.6 2.4 1.9 

 III 1.8 1.8 0.0 3.8 2.0 1.9 

 II 0.5 1.2 0.7 2.9 0.8 2.4 

 I 0.1 0.4 0.2 4.4 2.9 4.3 

2013 ANNUAL 0.9 1.1 0.2 1.2 -0.2 0.3 

2013 IV 0.7 1.1 0.4 1.4 0.1 0.7 

 III 1.3 1.2 -0.1 0.9 -0.6 -0.4 

 II 1.5 1.5 0.0 1.5 0.1 0.0 

 I 0.2 0.8 0.6 1.2 -0.5 1.1 

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

 Indexes 2009=100

2015 III 113.7 116.8 102.7 112.7 101.6 99.1 

 II 113.3 r 116.3 r 102.6 r 111.0 r 100.5 r 98.0 r

 I 113.0 r 115.9 r 102.6 110.8 101.1 98.1 r

2014 ANNUAL 112.3 114.0 101.5 109.8 99.5 97.7 

2014 IV 112.6 115.4 102.5 110.8 100.3 98.4 

 III 113.2 114.3 100.9 109.9 99.3 97.1 

 II 112.2 113.6 101.3 109.1 98.8 97.2 

 I 111.2 112.6 101.3 109.2 99.6 98.3 

2013 ANNUAL 111.2 112.3 101.0 105.9 97.5 95.3 

2013 IV 110.8 112.5 101.5 107.0 98.0 96.5 

 III 111.2 112.2 100.9 105.9 97.4 95.3 

 II 111.6 112.3 100.6 106.0 98.0 95.0 

 I 111.0 112.2 101.1 104.7 96.7 94.2 

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

See footnotes following Table 6. November 5, 2015

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

 Real Unit

 Output Hourly hourly non- Total Unit Implicit

Year per all- compen- compen- Unit labor unit pro- price

and employee Employee sation sation labor costs cost fits deflator

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

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

 Percent change from previous quarter at annual rate(5) 

2015 II -0.5 r 0.0 r 0.4 r 2.1 r -0.8 r 2.6 r -1.0 r 1.5 r 8.0 r 2.4 r

 I -2.1 -0.3 1.8 0.5 3.6 2.6 3.2 2.8 -19.3 -0.8 

2014 ANNUAL 0.4 3.2 2.8 2.4 0.8 2.0 -1.4 0.9 -0.4 0.7 

2014 IV 3.4 7.4 3.9 1.5 2.3 -1.8 -6.4 -3.3 -6.5 -3.8 

 III 2.4 5.2 2.7 1.6 0.4 -0.8 -1.1 -0.9 17.2 1.6 

 II 1.7 6.2 4.4 -1.7 -4.1 -3.3 -3.4 -3.4 27.4 0.5 

 I -1.7 0.2 2.0 8.4 6.2 10.3 -0.8 6.5 -22.0 1.9 

2013 ANNUAL 1.0 3.0 2.0 1.3 -0.2 0.3 -0.2 0.1 4.4 0.8 

2013 IV -0.2 2.3 2.4 0.9 -0.5 1.1 0.8 1.0 0.9 1.0 

 III -2.0 0.5 2.6 -0.3 -2.6 1.7 1.2 1.6 -7.5 0.2 

 II 4.8 6.0 1.1 4.4 4.6 -0.5 -4.0 -1.6 6.9 -0.4 

 I -0.5 2.8 3.3 -4.2 -5.6 -3.7 1.8 -1.9 14.6 0.3 

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

 Percent change from corresponding quarter of previous year

2015 II 0.8 3.0 2.2 1.4 1.4 0.6 r -1.3 r 0.0 r -1.2 r -0.2 

 I 1.3 4.6 3.2 0.5 0.5 -0.9 -2.0 -1.2 3.0 -0.6 

2014 ANNUAL 0.4 3.2 2.8 2.4 0.8 2.0 -1.4 0.9 -0.4 0.7 

2014 IV 1.4 4.7 3.3 2.4 1.1 0.9 -2.9 -0.3 2.1 0.0 

 III 0.5 3.4 2.9 2.2 0.4 1.7 -1.1 0.8 4.1 1.3 

 II -0.6 2.3 2.9 1.7 -0.3 2.3 -0.6 1.4 -1.9 0.9 

 I 0.2 2.2 2.0 3.3 1.9 3.1 -0.7 1.8 -6.1 0.7 

2013 ANNUAL 1.0 3.0 2.0 1.3 -0.2 0.3 -0.2 0.1 4.4 0.8 

2013 IV 0.5 2.9 2.4 0.1 -1.1 -0.4 -0.1 -0.3 3.4 0.3 

 III 2.0 4.2 2.2 1.8 0.3 -0.2 -1.2 -0.5 4.3 0.2 

 II 1.2 3.1 1.9 1.9 0.5 0.7 -0.4 0.3 4.8 1.0 

 I 0.1 1.9 1.8 1.3 -0.4 1.1 0.9 1.0 5.2 1.6 

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

 Indexes 2009=100

2015 II 108.7 r 122.4 r 112.6 r 111.7 r 101.2 r 102.8 r 95.7 r 100.4 r 146.0 r 105.2 r

 I 108.8 122.4 112.4 111.2 101.4 102.1 95.9 100.0 143.2 104.6 

2014 ANNUAL 108.3 119.6 110.5 110.6 100.2 102.1 96.6 100.3 148.0 105.3 

2014 IV 109.4 122.5 111.9 111.0 100.5 101.5 95.1 99.4 151.1 104.8 

 III 108.5 120.3 110.9 110.6 99.9 101.9 96.7 100.2 153.7 105.8 

 II 107.9 118.8 110.1 110.2 99.8 102.1 97.0 100.4 147.7 105.4 

 I 107.4 117.0 108.9 110.7 100.9 103.0 97.8 101.3 139.0 105.2 

2013 ANNUAL 107.9 116.0 107.5 108.0 99.5 100.1 98.0 99.4 148.5 104.6 

2013 IV 107.9 117.0 108.4 108.5 99.4 100.5 98.0 99.7 148.0 104.7 

 III 107.9 116.3 107.7 108.2 99.5 100.2 97.8 99.4 147.6 104.5 

 II 108.5 116.1 107.1 108.3 100.1 99.8 97.5 99.1 150.5 104.4 

 I 107.2 114.5 106.8 107.1 99.0 99.9 98.5 99.5 148.0 104.5 

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

See footnotes following Table 6. November 5, 2015

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 2015. 

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 1978-2014 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.