United States 

Department 

of Labor 

Bureau of Labor Statistics Washington, D.C. 20212 

Internet address: http://www.bls.gov/lpc/ USDL 02-318 

Historical, technical TRANSMISSION OF THIS 

 information: (202) 691-5606 MATERIAL IS EMBARGOED 

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

Media contact: (202) 691-5902 FRIDAY, MAY 31, 2002. 

PRODUCTIVITY AND COSTS 

First Quarter 2002 

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

productivity data—as measured by output per hour of all persons—for the first quarter of 2002. 

The revised seasonally adjusted annual rates of productivity change in the first quarter were: 

 8.3 percent in the business sector and 

 8.4 percent in the nonfarm business sector. 

In both sectors, the first-quarter productivity gains were slightly lower than those reported 

initially on May 7. 

 In manufacturing, the revised productivity changes in the first quarter were: 

 9.4 percent in manufacturing, 

 13.3 percent in durable goods manufacturing, and 

 4.6 percent in nondurable goods manufacturing. 

 Manufacturing productivity rose as first-quarter output increased while hours of all 

persons working in the sector declined for the seventh consecutive quarter. Output and hours in 

manufacturing, which includes about 16 percent of U.S. business-sector employment, tend to 

vary more from quarter to quarter than data for the more aggregate business and nonfarm 

business sectors. First-quarter measures are summarized in table A and appear in detail in tables 

1 through 5. 

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

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

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

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

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

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

System. See Technical Notes for further information on data sources (page 6).
2 

 

Table A. Productivity and costs: Revised first-quarter 2002 measures 

(Seasonally adjusted annual rates) 

 

Sector 

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation 

Unit 

labor 

costs 

 Percent change from preceding quarter 

Business 8.3 6.2 -2.0 2.9 1.4 -5.0 

Nonfarm business 8.4 6.1 -2.1 2.8 1.4 -5.2 

Manufacturing 9.4 2.9 -5.9 2.4 1.0 -6.4 

 Durable 13.3 4.8 -7.5 1.9 0.4 -10.1 

 Nondurable 4.6 1.0 -3.5 3.8 2.4 -0.7 

 Percent change from same quarter a year ago 

Business 4.1 1.2 -2.8 3.4 2.1 -0.7 

Nonfarm business 4.2 1.2 -2.9 3.4 2.1 -0.8 

Manufacturing 4.0 -3.7 -7.4 3.6 2.4 -0.3 

 Durable 4.6 -4.8 -9.0 4.0 2.7 -0.6 

 Nondurable 2.7 -2.3 -4.9 3.4 2.1 0.7 

Business 

 Productivity increased 8.3 percent in the business sector (seasonally adjusted annual rate) 

from the fourth quarter of 2001 to the first quarter of 2002, as output increased 6.2 percent and 

hours worked by all persons decreased 2.0 percent (table 1). The gain in output per hour was the 

largest since the first quarter of 1973, when growth was 8.4 percent. 

 Hourly compensation increased 2.9 percent during the first quarter of 2002. This measure 

of compensation includes wages and salaries, supplements, employer contributions to employee 

benefit plans, and taxes. Real hourly compensation, which takes into account changes in 

consumer prices, increased 1.4 percent in the first quarter. 

Unit labor costs, which reflect changes in both hourly compensation and productivity, 

dropped 5.0 percent during the first quarter of 2002. The decline in unit labor costs was the 

largest since a fall of 7.5 percent in the first quarter of 1955. The implicit price deflator for 

business output, which reflects changes in both unit labor costs and unit nonlabor payments, was 

unchanged between the fourth quarter of 2001 and the first quarter of 2002. 
3 

 

Nonfarm business 

 Productivity rose 8.4 percent in the nonfarm business sector during the first quarter of 

2002, reflecting a 6.1-percent rise in output and a 2.1-percent decrease in working hours of all 

persons. The increase in output per hour was the largest since the second quarter of 1983, when 

growth was 9.9 percent. Hours worked in the nonfarm business sector now have declined in 

seven of the last eight quarters (table 2). 

 Hourly compensation increased 2.8 percent in the first quarter of 2002. When the rise in 

consumer prices is taken into account, real hourly compensation gained 1.4 percent in the first 

quarter. 

The 5.2-percent decrease in unit labor costs during the first quarter of 2002 was the 

largest posted since the second quarter of 1983, when these costs fell 6.5 percent. The implicit 

price deflator for nonfarm business output declined 0.6 percent in the first quarter of 2002. 

Manufacturing 

 Productivity rose 9.4 percent in manufacturing in the first quarter of 2002, as output 

increased 2.9 percent and working hours of all persons declined 5.9 percent (seasonally adjusted 

annual rates). In durable goods industries, productivity grew 13.3 percent, reflecting an output 

increase of 4.8 percent and a decline of 7.5 percent in hours of all persons. In nondurable goods 

industries, productivity rose 4.6 percent as output rose 1.0 percent and hours dropped 3.5 percent 

(tables 3, 4, and 5). 

 Hourly compensation in manufacturing rose 2.4 percent during the first quarter. This 

increase reflects a rise of 1.9 percent in the hourly compensation of persons in durable goods 

industries and a larger increase, 3.8 percent, in the hourly compensation of workers in nondurable 

goods industries. Real hourly compensation, which takes account of changes in consumer prices, 

rose 1.0 percent for all manufacturing workers. 

 The combination of a 9.4-percent rise in manufacturing productivity and a 2.4-percent 

increase in hourly compensation in the first quarter caused unit labor costs in manufacturing to 

fall 6.4 percent. The last time unit labor costs fell this much in one quarter was in the second 

quarter of 1961, when they fell 6.9 percent. Unit labor costs declined in both sectors of 

manufacturing in the first quarter of 2002. In durable goods industries, they fell 10.1 percent, the 

largest decline since a 10.3-percent drop in the first quarter of 1960. In nondurable goods 

industries, unit labor costs fell 0.7 percent in the first quarter of 2002. 
4 

 

Nonfinancial corporations 

Preliminary first-quarter 2002 measures of productivity and costs for nonfinancial 

corporations also were announced today (tables B and 6). Productivity rose 6.7 percent in the 

first quarter, less than the 11.2-percent rise recorded in the fourth quarter of 2001. Output 

increased 5.4 percent in first quarter 2002, while employee-hours declined 1.2 percent 

(seasonally adjusted annual rates). This marked the fourth consecutive decline in hours of 

nonfinancial corporate employees, as employment fell in all four quarters. However, average 

weekly hours fell only in the last three quarters of 2001; they rose 1.0 percent in the first quarter 

of 2002. Nonfinancial corporations include all corporations doing business in the United States, 

except banks, stock and commodity brokers, and finance and insurance agencies. 

Table B. Nonfinancial corporations: Preliminary first-quarter 2002 productivity and cost 

measures 

(Seasonally adjusted annual rates) 

 

Period 

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation 

Unit 

labor 

costs 

Unit 

profits 

Implicit 

price 

deflator 

 Percent change from preceding quarter 

2002 I 6.7 5.4 -1.2 3.6 2.1 -2.9 15.5 -0.8 

 Percent change from same quarter a year ago 

2002 I 5.5 2.4 -2.9 4.5 3.2 -0.9 4.2 0.2 

Hourly compensation increased 3.6 percent during both the fourth quarter of 2001 and 

the first quarter of 2002. When the rise in consumer prices is taken into account, real hourly 

compensation rose 2.1 percent in the first quarter. Unit labor costs in nonfinancial corporations 

declined 2.9 percent in the first quarter, less than the 6.8-percent drop one quarter earlier. This 

was the first two-quarter decline in unit labor costs to occur since the second and third quarters 

of 1997, when they fell 0.6 and 1.7 percent, respectively. 

 Unit profits grew 15.5 percent in first quarter 2002, less than the 58.0-percent climb in 

the fourth quarter of 2001. Unit profits had fallen in the previous five quarters. The implicit 

price deflator for nonfinancial corporate output declined 0.8 percent in the first quarter of 2002. 
5 

 

REVISED MEASURES 

 Current and previous measures for the first quarter of 2002 for business, nonfarm 

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

manufacturing sectors, output and productivity were revised down from the data reported on 

May 7, based on information then available. As a result, unit labor costs were revised upward. 

Table C. Previous and revised productivity and related measures 

(Quarterly percent change at seasonally adjusted annual rate) 

Sector 

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation 

Unit 

labor 

costs 

 First quarter 2002 

Business: 

 Previous........................ 8.5 6.5 -1.8 2.8 1.3 -5.3 

 Current ......................... 8.3 6.2 -2.0 2.9 1.4 -5.0 

Nonfarm business: 

 Previous........................ 8.6 6.5 -1.9 2.7 1.2 -5.4 

 Current ......................... 8.4 6.1 -2.1 2.8 1.4 -5.2 

Manufacturing: 

 Previous........................ 9.7 3.2 -5.9 2.5 1.1 -6.5 

 Current ......................... 9.4 2.9 -5.9 2.4 1.0 -6.4 

Next release date 

 The next release of Productivity and Costs is scheduled for 8:30 AM EDT, Friday, 

Aug. 9, 2002. Preliminary second-quarter measures for business, nonfarm business, and 

manufacturing will be released at that time. This release will incorporate the annual benchmark 

revision to the employment levels in the BLS establishment survey data. All employment and 

hours series will incorporate new information on seasonal patterns. The release also will 

incorporate the annual three-year revision of the National Income and Product Accounts by the 

Bureau of Economic Analysis, U.S. Department of Commerce. 
6 

 

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. The Office of Productivity and 

Technology estimates average weekly paid hours of 

nonproduction and supervisory workers. Weekly 

paid hours are adjusted to hours at work using the 

BLS Hours at Work survey, conducted for this 

purpose. 

 Data from the BLS Current Population 

Survey (CPS) are used for farm labor; in the 

nonfarm sector, the National Income and Product 

Accounts (NIPA) prepared by the Bureau of 

Economic Analysis (BEA) of the Department of 

Commerce and the CPS are used to measure labor 

input for government enterprises, proprietors, and 

unpaid family workers. 

Output: Business sector output is an annualweighted index constructed after excluding from 

gross domestic product (GDP) the following 

outputs: General government, nonprofit institutions, 

paid employees of private households, and the 

rental value of owner-occupied dwellings. 

Corresponding exclusions also are made in labor 

inputs. Business output accounted for about 77 

percent of the value of GDP in 1996. Nonfarm 

business, which also excludes farming, accounted 

for about 76 percent of GDP in 1996. 

 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 BEA. 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 2-digit SIC 

industries: Primary metal industries; fabricated 

metal products; nonelectrical machinery; industrial 

and commercial machinery and computer 

equipment; electronic and other electrical 

equipment; transportation equipment; instruments; 

lumber and lumber products; furniture and fixtures; 

stone, clay, and glass and concrete products; and 

miscellaneous manufactures. Nondurables include: 

Food and kindred products, tobacco products, 

textile mill products, apparel products, paper and 

allied products, printing and publishing, chemicals 

and chemical products, petroleum refining and 

related industries, rubber and plastic products, and 

leather and leather products. 

 Nonfinancial corporate output is an annualweighted 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; employees of private households; the 

rental value of owner-occupied dwellings; 

unincorporated business; and those corporations 

which are depository institutions, nondepository 

institutions, security and commodity brokers, 

insurance carriers, regulated investment offices, 

small business investment offices, and real estate 

investment trusts. Nonfinancial corporations 

accounted for about 53 percent of the value of GDP 

in 1996. 

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. 

 Information in this release will be made 

available to sensory-impaired individuals upon 

request. Voice phone: 202-691-5200; Federal Relay 

Service number: 1-800-877-8339.
7 

 

 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 

 2000 I 115.3 138.6 120.2 129.3 108.7 112.2 114.2 112.9 

 II 117.5 140.8 119.8 132.1 110.3 112.5 115.1 113.5 

 III 117.8 141.2 119.9 134.3 111.1 114.0 113.8 113.9 

 IV 118.7 141.9 119.5 137.4 112.9 115.8 112.0 114.4 

 ANNUAL 117.3 140.6 119.8 133.3 110.8 113.6 113.8 113.7 

 2001 I 118.6 142.3 119.9 139.1 113.3 117.3 111.7 115.2 

 II 119.3 142.1 119.1 140.9 113.8 118.1 111.5 115.7 

 III 119.5 141.2 118.2 142.1 114.5 118.9 111.7 116.2 

 IV 121.1 141.8 117.1 142.8 115.3 118.0 112.3 115.9 

 ANNUAL 119.6 141.9 118.6 141.2 114.2 118.1 111.8 115.8 

 2002 I r123.5 r143.9 116.6 r143.9 r115.7 r116.5 114.8 r115.9 

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

 Percent change from previous quarter at annual rate(5) 

 2000 I -0.1 2.2 2.3 6.5 2.4 6.6 -2.1 3.2 

 II 7.7 6.5 -1.1 9.0 5.9 1.3 3.5 2.1 

 III 1.2 1.3 0.1 6.8 3.1 5.5 -4.5 1.7 

 IV 3.0 1.8 -1.1 9.5 6.4 6.3 -6.1 1.6 

 ANNUAL 3.4 4.6 1.1 6.4 3.0 2.9 0.2 1.9 

 2001 I -0.2 1.2 1.4 5.1 1.4 5.3 -1.3 2.9 

 II 2.2 -0.7 -2.8 5.2 2.0 3.0 -0.6 1.7 

 III 0.7 -2.3 -2.9 3.3 2.6 2.6 0.6 1.9 

 IV 5.4 1.6 -3.6 2.2 2.5 -3.0 2.2 -1.2 

 ANNUAL 2.0 0.9 -1.0 6.0 3.1 3.9 -1.8 1.8 

 2002 I r8.3 r6.2 r-2.0 r2.9 r1.4 r-5.0 9.4 r0.0 

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

 Percent change from corresponding quarter of previous year 

 2000 I 2.3 4.7 2.3 5.0 1.7 2.7 -0.3 1.5 

 II 4.5 5.9 1.4 6.2 2.8 1.6 2.2 1.9 

 III 4.0 4.9 0.9 6.6 3.0 2.5 1.3 2.1 

 IV 2.9 3.0 0.0 7.9 4.4 4.9 -2.4 2.1 

 ANNUAL 3.4 4.6 1.1 6.4 3.0 2.9 0.2 1.9 

 2001 I 2.9 2.7 -0.2 7.6 4.2 4.6 -2.2 2.1 

 II 1.6 0.9 -0.6 6.6 3.2 5.0 -3.2 2.0 

 III 1.4 0.0 -1.4 5.8 3.1 4.3 -1.9 2.0 

 IV 2.0 0.0 -2.0 4.0 2.1 1.9 0.2 1.3 

 ANNUAL 2.0 0.9 -1.0 6.0 3.1 3.9 -1.8 1.8 

 2002 I 4.1 1.2 -2.8 3.4 2.1 -0.7 2.8 r0.6 

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

 See footnotes following Table 6. May 31, 2002 

 r=revised Source: Bureau of Labor Statistics 
8 

 

 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 

 2000 I 114.8 138.8 120.9 128.7 108.2 112.1 115.9 113.5 

 II 116.7 141.0 120.8 131.2 109.5 112.5 116.7 114.0 

 III 117.2 141.4 120.7 133.6 110.5 114.0 115.3 114.5 

 IV 117.8 142.1 120.6 136.5 112.1 115.8 113.4 114.9 

 ANNUAL 116.6 140.8 120.8 132.5 110.2 113.6 115.3 114.2 

 2001 I 117.8 142.5 121.0 138.1 112.4 117.2 113.1 115.7 

 II 118.4 142.4 120.2 139.7 112.8 118.0 112.9 116.1 

 III 118.7 141.5 119.2 141.0 113.7 118.7 112.9 116.6 

 IV 120.3 142.1 118.1 141.8 114.4 117.8 114.2 116.5 

 ANNUAL 118.8 142.1 119.6 140.1 113.3 117.9 113.3 116.2 

 2002 I 122.8 r144.2 r117.4 r142.8 r114.8 r116.3 116.4 r116.3 

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

 Percent change from previous quarter at annual rate(5) 

 2000 I 0.0 2.0 2.0 6.9 2.7 6.9 -1.8 3.5 

 II 6.7 6.5 -0.2 8.1 5.0 1.3 2.5 1.7 

 III 1.6 1.2 -0.5 7.4 3.7 5.7 -4.4 1.8 

 IV 2.3 1.8 -0.5 8.9 5.8 6.4 -6.6 1.5 

 ANNUAL 3.3 4.5 1.1 6.5 3.1 3.1 0.1 2.0 

 2001 I -0.1 1.4 1.4 4.9 1.2 5.0 -1.2 2.7 

 II 2.1 -0.4 -2.4 4.7 1.5 2.6 -0.5 1.5 

 III 1.1 -2.3 -3.4 3.7 3.0 2.6 0.0 1.7 

 IV 5.5 1.5 -3.8 2.3 2.6 -3.1 4.6 -0.4 

 ANNUAL 1.9 0.9 -0.9 5.8 2.9 3.8 -1.8 1.8 

 2002 I r8.4 r6.1 r-2.1 r2.8 r1.4 r-5.2 r8.2 r-0.6 

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

 Percent change from corresponding quarter of previous year 

 2000 I 2.4 4.6 2.2 5.3 2.0 2.9 0.0 1.8 

 II 4.4 5.9 1.4 6.3 2.9 1.8 2.1 1.9 

 III 4.0 4.8 0.8 6.7 3.2 2.7 1.2 2.1 

 IV 2.6 2.8 0.2 7.8 4.3 5.0 -2.6 2.2 

 ANNUAL 3.3 4.5 1.1 6.5 3.1 3.1 0.1 2.0 

 2001 I 2.6 2.7 0.1 7.3 3.9 4.6 -2.5 2.0 

 II 1.5 1.0 -0.5 6.5 3.0 4.9 -3.2 1.9 

 III 1.3 0.1 -1.2 5.5 2.8 4.1 -2.1 1.8 

 IV 2.1 0.0 -2.1 3.9 2.0 1.7 0.7 1.4 

 ANNUAL 1.9 0.9 -0.9 5.8 2.9 3.8 -1.8 1.8 

 2002 I r4.2 r1.2 -2.9 r3.4 2.1 r-0.8 r3.0 0.5 

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

 See footnotes following Table 6. May 31, 2002 

 r=revised Source: Bureau of Labor Statistics 
9 

 

 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 

 2000 I 135.2 139.9 103.5 126.3 106.2 93.4 

 II 137.2 142.3 103.8 128.6 107.4 93.8 

 III 138.3 142.5 103.0 131.9 109.2 95.4 

 IV 139.2 141.1 101.3 135.9 111.7 97.6 

 ANNUAL 137.5 141.5 102.9 130.7 108.6 95.1 

 2001 I 138.3 138.5 100.1 137.9 112.3 99.7 

 II 138.1 136.3 98.7 140.0 113.0 101.3 

 III 139.0 134.6 96.8 141.2 113.8 101.5 

 IV 140.6 132.4 94.2 142.0 114.6 101.0 

 ANNUAL 139.0 135.5 97.5 140.2 113.4 100.9 

 2002 I r143.8 r133.4 92.8 142.9 114.9 r99.4 

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

 Percent change from previous quarter at annual rate(5) 

 2000 I 7.6 6.3 -1.2 5.9 1.8 -1.6 

 II 6.1 7.1 0.9 7.5 4.4 1.4 

 III 3.3 0.4 -2.8 10.6 6.8 7.1 

 IV 2.8 -4.0 -6.6 12.7 9.5 9.7 

 ANNUAL 6.1 4.6 -1.4 7.0 3.6 0.9 

 2001 I -2.7 -7.1 -4.5 6.0 2.2 8.9 

 II -0.5 -6.2 -5.7 6.1 2.8 6.7 

 III 2.6 -4.9 -7.3 3.5 2.8 0.8 

 IV 4.7 -6.3 -10.4 2.5 2.8 -2.1 

 ANNUAL 1.1 -4.2 -5.3 7.3 4.4 6.1 

 2002 I r9.4 r2.9 -5.9 r2.4 r1.0 r-6.4 

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

 Percent change from corresponding quarter of previous year 

 2000 I 6.0 5.1 -0.8 5.5 2.2 -0.5 

 II 6.9 6.1 -0.7 6.1 2.8 -0.7 

 III 6.7 5.1 -1.5 7.3 3.7 0.5 

 IV 4.9 2.3 -2.4 9.1 5.6 4.0 

 ANNUAL 6.1 4.6 -1.4 7.0 3.6 0.9 

 2001 I 2.3 -1.0 -3.3 9.2 5.7 6.7 

 II 0.7 -4.3 -4.9 8.8 5.3 8.1 

 III 0.5 -5.5 -6.0 7.0 4.3 6.5 

 IV 1.0 -6.1 -7.0 4.5 2.7 3.5 

 ANNUAL 1.1 -4.2 -5.3 7.3 4.4 6.1 

 2002 I 4.0 r-3.7 -7.4 3.6 2.4 r-0.3 

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

 See footnotes following Table 6. May 31, 2002 

 r=revised Source: Bureau of Labor Statistics 
10 

 

 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 

 2000 I 152.0 166.7 109.7 124.4 104.6 81.8 

 II 155.0 171.0 110.3 126.7 105.8 81.7 

 III 156.4 171.6 109.7 130.1 107.7 83.2 

 IV 156.9 169.5 108.0 134.6 110.5 85.7 

 ANNUAL 155.1 169.7 109.4 128.9 107.2 83.1 

 2001 I 155.2 165.2 106.5 136.6 111.2 88.0 

 II 155.2 162.5 104.7 138.7 112.0 89.3 

 III 156.0 159.3 102.1 140.2 113.0 89.8 

 IV 157.4 155.5 98.8 141.4 114.1 89.9 

 ANNUAL 155.9 160.6 103.0 139.2 112.6 89.2 

 2002 I r162.4 157.4 r96.9 142.1 r114.2 87.5 

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

 Percent change from previous quarter at annual rate(5) 

 2000 I 13.5 12.8 -0.6 5.6 1.5 -7.0 

 II 8.2 10.7 2.3 7.7 4.6 -0.5 

 III 3.7 1.4 -2.2 11.2 7.4 7.3 

 IV 1.3 -4.8 -6.0 14.3 11.1 12.9 

 ANNUAL 8.1 7.4 -0.6 7.3 3.8 -0.8 

 2001 I -4.3 -9.7 -5.6 6.1 2.3 10.9 

 II 0.0 -6.5 -6.6 6.3 3.0 6.2 

 III 2.0 -7.6 -9.4 4.3 3.6 2.3 

 IV 3.5 -9.2 -12.3 3.6 3.9 0.1 

 ANNUAL 0.5 -5.3 -5.9 7.9 5.0 7.4 

 2002 I 13.3 r4.8 r-7.5 r1.9 r0.4 r-10.1 

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

 Percent change from corresponding quarter of previous year 

 2000 I 8.0 7.9 -0.1 5.7 2.4 -2.1 

 II 9.1 9.5 0.4 6.2 2.8 -2.7 

 III 8.7 7.7 -0.9 7.5 3.9 -1.1 

 IV 6.5 4.8 -1.7 9.6 6.1 2.9 

 ANNUAL 8.1 7.4 -0.6 7.3 3.8 -0.8 

 2001 I 2.1 -0.9 -2.9 9.8 6.3 7.5 

 II 0.1 -5.0 -5.1 9.4 5.9 9.3 

 III -0.3 -7.2 -6.9 7.7 5.0 8.0 

 IV 0.3 -8.2 -8.5 5.1 3.2 4.8 

 ANNUAL 0.5 -5.3 -5.9 7.9 5.0 7.4 

 2002 I 4.6 r-4.8 r-9.0 4.0 r2.7 r-0.6 

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

 See footnotes following Table 6. May 31, 2002 

 r=revised Source: Bureau of Labor Statistics 
11 

 

 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 

 2000 I 120.6 115.0 95.3 127.9 107.6 106.1 

 II 121.7 115.7 95.1 130.1 108.6 106.9 

 III 122.6 115.4 94.2 133.1 110.1 108.6 

 IV 124.0 114.6 92.4 136.2 111.9 109.8 

 ANNUAL 122.2 115.2 94.2 131.8 109.6 107.8 

 2001 I 123.8 113.5 91.7 138.2 112.5 111.7 

 II 123.3 111.8 90.7 140.2 113.2 113.7 

 III 124.1 111.4 89.8 141.1 113.8 113.7 

 IV 125.6 110.6 88.0 141.5 114.2 112.6 

 ANNUAL 124.2 111.8 90.1 140.2 113.4 112.9 

 2002 I r127.1 110.9 87.2 142.8 114.8 r112.4 

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

 Percent change from previous quarter at annual rate(5) 

 2000 I 0.5 -1.6 -2.1 6.3 2.2 5.7 

 II 3.6 2.5 -1.1 6.9 3.9 3.2 

 III 2.9 -0.9 -3.7 9.4 5.7 6.3 

 IV 4.8 -2.9 -7.4 9.7 6.6 4.7 

 ANNUAL 3.8 1.1 -2.6 6.4 2.9 2.5 

 2001 I -0.9 -3.7 -2.8 5.9 2.1 6.9 

 II -1.6 -5.9 -4.4 5.9 2.7 7.6 

 III 2.7 -1.5 -4.1 2.6 1.9 -0.1 

 IV 5.1 -2.9 -7.6 1.1 1.4 -3.8 

 ANNUAL 1.6 -2.9 -4.4 6.4 3.5 4.7 

 2002 I r4.6 r1.0 r-3.5 r3.8 2.4 r-0.7 

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

 Percent change from corresponding quarter of previous year 

 2000 I 3.5 1.6 -1.8 4.9 1.6 1.3 

 II 4.4 1.9 -2.4 5.8 2.4 1.4 

 III 4.4 1.8 -2.5 6.8 3.3 2.4 

 IV 3.0 -0.7 -3.6 8.1 4.6 5.0 

 ANNUAL 3.8 1.1 -2.6 6.4 2.9 2.5 

 2001 I 2.6 -1.3 -3.8 8.0 4.6 5.3 

 II 1.3 -3.3 -4.6 7.7 4.3 6.4 

 III 1.2 -3.5 -4.7 6.0 3.3 4.7 

 IV 1.3 -3.5 -4.7 3.9 2.0 2.6 

 ANNUAL 1.6 -2.9 -4.4 6.4 3.5 4.7 

 2002 I r2.7 -2.3 -4.9 3.4 2.1 r0.7 

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

 See footnotes following Table 6. May 31, 2002 

 r=revised Source: Bureau of Labor Statistics 
12 

 

 Table 6. Nonfinancial corporations: 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 

 2000 I 117.2 146.6 125.1 125.0 105.1 106.6 106.2 106.5 135.1 108.9 

 II 118.8 148.7 125.1 127.6 106.5 107.4 106.5 107.1 139.3 109.8 

 III 119.6 149.7 125.2 129.7 107.3 108.5 107.1 108.1 135.8 110.5 

 IV 119.8 149.8 125.1 132.7 109.0 110.8 107.8 110.0 120.5 110.9 

 ANNUAL 118.8 148.7 125.1 128.8 107.0 108.3 106.9 107.9 132.6 110.0 

 2001 I 119.9 150.1 125.1 134.5 109.5 112.2 109.3 111.4 111.1 111.4 

 II 120.9 150.4 124.4 136.5 110.3 112.9 111.2 112.5 107.4 112.0 

 III 121.2 149.4 123.3 138.1 111.4 114.0 114.2 114.0 99.6 112.8 

 IV 124.4 151.7 121.9 139.4 112.5 112.0 111.6 111.9 111.6 111.9 

 ANNUAL 121.6 150.4 123.7 137.1 110.9 112.8 111.6 112.4 107.4 112.0 

 2002 I 126.5 153.7 121.5 140.6 113.0 111.2 111.5 111.3 115.7 111.6 

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

 Percent change from previous quarter at annual rate(5) 

 2000 I 2.8 5.3 2.5 6.0 1.9 3.2 4.1 3.4 12.2 4.3 

 II 5.6 5.7 0.1 8.4 5.3 2.7 1.1 2.3 13.0 3.4 

 III 2.6 2.8 0.2 7.0 3.3 4.3 2.4 3.8 -9.8 2.2 

 IV 0.7 0.3 -0.3 9.6 6.5 8.9 2.6 7.2 -38.0 1.6 

 ANNUAL 3.1 4.8 1.7 6.3 2.8 3.1 2.7 3.0 -1.0 2.5 

 2001 I 0.5 0.7 0.2 5.5 1.7 5.0 5.8 5.2 -27.8 1.8 

 II 3.3 0.8 -2.4 6.1 2.8 2.7 7.0 3.8 -12.6 2.3 

 III 0.9 -2.6 -3.5 4.7 4.0 3.8 11.2 5.7 -26.1 2.8 

 IV 11.2 6.2 -4.5 3.6 3.9 -6.8 -8.5 -7.3 58.0 -3.2 

 ANNUAL 2.3 1.1 -1.2 6.5 3.6 4.1 4.4 4.2 -19.0 1.8 

 2002 I 6.7 5.4 -1.2 3.6 2.1 -2.9 -0.3 -2.2 15.5 -0.8 

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

 Percent change from corresponding quarter of previous year 

 2000 I 2.4 5.1 2.7 4.9 1.6 2.5 3.3 2.7 -4.6 1.9 

 II 3.6 5.6 2.0 6.0 2.6 2.3 3.0 2.5 2.9 2.5 

 III 3.6 5.1 1.4 6.4 2.9 2.7 2.0 2.5 6.0 2.9 

 IV 2.9 3.5 0.6 7.8 4.3 4.7 2.5 4.1 -8.2 2.9 

 ANNUAL 3.1 4.8 1.7 6.3 2.8 3.1 2.7 3.0 -1.0 2.5 

 2001 I 2.3 2.3 0.0 7.6 4.2 5.2 2.9 4.6 -17.8 2.2 

 II 1.8 1.2 -0.6 7.0 3.6 5.2 4.4 5.0 -22.9 2.0 

 III 1.3 -0.2 -1.5 6.5 3.8 5.1 6.6 5.5 -26.7 2.1 

 IV 3.9 1.2 -2.6 5.0 3.1 1.1 3.6 1.7 -7.3 0.9 

 ANNUAL 2.3 1.1 -1.2 6.5 3.6 4.1 4.4 4.2 -19.0 1.8 

 2002 I 5.5 2.4 -2.9 4.5 3.2 -0.9 2.0 -0.1 4.2 0.2 

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

 See footnotes following Table 6. May 31, 2002 

 r=revised Source: Bureau of Labor Statistics 
13 

 

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 +1.7 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 fourth quarter of 2001. 

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 selfemployed, 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 1978-2001 is based on the Consumer Price Index research 

series (CPI-U-RS). 

(3) Unit nonlabor payments include profits, capital consumption allowances, interest, rental 

income of persons, and indirect taxes. 

(4) Current dollar output divided by the output index. 

(5) Quarterly changes: Percent change compounded at annual rate from the original data rather 

than index numbers. Annual changes: Percent change between annual average levels. 

(6) Unit nonlabor costs include capital consumption allowances, interest, rental income of 

persons, and indirect taxes. For nonfinancial corporations, rental income of persons is 

zero by definition. 

(7) Total unit costs are the sum of unit labor and nonlabor costs. 

(8) Unit profits include corporate profits with inventory valuation and capital consumption 

adjustments.