Transmission of material in this release is embargoed until USDL 14-0746 

8:30 a.m. (EDT) Wednesday, May 7, 2014 

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

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

PRODUCTIVITY AND COSTS

First Quarter 2014, Preliminary 

Nonfarm business sector labor productivity decreased at a 1.7 percent annual rate during the first quarter 

of 2014, the U.S. Bureau of Labor Statistics reported today. The decrease in productivity reflects increases of 

0.3 percent in output and 2.0 percent in hours worked. (All quarterly percent changes in this release are 

seasonally adjusted annual rates.) From the first quarter of 2013 to the first quarter of 2014, productivity 

increased 1.4 percent as output and hours worked rose 3.2 percent and 1.7 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 nonfarm businesses increased 4.2 percent in the first quarter of 2014, due to both the 

decline in productivity and a 2.4 percent increase in hourly compensation. Unit labor costs increased 0.9 

percent over the last four quarters. (See chart 2 and tables A and 2.) 

BLS defines unit labor costs as the ratio of hourly compensation to labor productivity; increases in hourly 

compensation tend to increase unit labor costs and increases in output per hour tend to reduce them. 

Manufacturing sector productivity increased 3.3 percent in the first quarter of 2014, as output increased 

1.8 percent and hours worked decreased 1.4 percent. (See chart 3.) Productivity increased 3.6 percent in the 

durable goods sector and increased 2.5 percent in the nondurable goods sector. Over the last four quarters, 

manufacturing productivity increased 2.2 percent, as output increased 2.4 percent and hours increased 0.2

percent. Unit labor costs in manufacturing increased 0.1 percent in the first quarter of 2014 and declined 

0.2 percent from the same quarter a year ago. (See chart 4 and tables A and 3.) 

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

2010Q1 – 2014Q1

-12.0

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2010 2011 2012 2013 2014

From previous quarter, annual rate

From same quarter a year ago

Percent change Percent change

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

2010Q1 – 2014Q1

-12.0

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2010 2011 2012 2013 2014

From previous quarter, annual rate

From same quarter a year ago
 

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 

Technical Notes for a more detailed explanation. (See page 4.) 

Preliminary fourth quarter and annual 2013 measures were announced today for the nonfinancial 

corporate sector. Productivity increased 2.1 percent in the fourth quarter of 2013 and was unchanged 

over the last four quarters. Annual average productivity was unchanged from 2012 to 2013. (See tables 

C and 6). 

Revised measures 

Revised measures of real hourly compensation for all sectors, from 2009 onward, reflect revisions in the 

consumer price series based on new and revised data from the BLS Office of Prices and Living 

Conditions. Output data for the manufacturing sector incorporate historically revised indexes of 

industrial production published by the Board of Governors of the Federal Reserve System on March 28. 

These revisions affected quarterly manufacturing output, productivity, and unit labor cost measures for 

the data series beginning in 1987 and recent annual measures. Full historical annual and quarterly 

measures are available on the labor productivity and costs home page: www.bls.gov/lpc/#data. 

In the fourth quarter of 2013, nonfarm business sector productivity increased 2.3 percent, which is a 

larger increase than reported March 6; this revision is due to both an upward revision to output and a 

downward revision to hours. Unit labor costs fell 0.4 percent, a larger decline than previously reported. 

Manufacturing sector productivity rose 1.3 percent in the fourth quarter, the same rate as was previously 

reported. Unit labor costs in the manufacturing sector rose 0.1 percent, rather than falling 0.1 percent as 

reported March 6. (See table B.) 

2013 Annual Average measures for productivity and unit labor costs in the nonfarm business sector 

were unrevised from the March 6 release. In the manufacturing sector, an upward revision to output led 

to an upward revision to productivity and a downward revision to unit labor costs. (See table B.)

______________ 

The revised Productivity and Costs news release for first-quarter 2014 is scheduled to be released 

on Wednesday, June 4, 2014 at 8:30 a.m. (EDT).

Chart 3. Output per hour, manufacturing, all persons, 

2010Q1 – 2014Q1

-12.0

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2010 2011 2012 2013 2014

From previous quarter, annual rate

From same quarter a year ago

-12.0

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2010 2011 2012 2013 2014

From previous quarter, annual rate

From same quarter a year ago

Percent change Percent change

Chart 4. Unit labor costs, manufacturing, all persons, 

2010Q1 – 2014Q1

-2- 
Table A. Preliminary first-quarter 2014 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

Productivity -1.7 1.4 -1.8 1.3 3.3 2.2 3.6 3.3 2.5 1.0

Output 0.3 3.2 -0.2 3.1 1.8 2.4 1.6 3.8 2.0 0.9

Hours 2.0 1.7 1.6 1.7 -1.4 0.2 -1.9 0.4 -0.5 -0.1

Hourly compensation 2.4 2.3 2.7 2.3 3.3 2.0 3.6 2.2 2.9 1.7

Real hourly compensation 0.5 0.9 0.8 0.9 1.4 0.6 1.6 0.7 1.0 0.2

Unit labor costs 4.2 0.9 4.7 1.0 0.1 -0.2 -0.1 -1.1 0.4 0.6

Table B. Revised and previous measures: fourth quarter and annual averages 2013 

Sector

 Nonfarm

 Business Business Manufacturing

 Durable

 Manufacturing

 Nondurable

 Manufacturing

Revised Previous Revised Previous Revised Previous Revised Previous Revised Previous

Percent change, annual rate, fourth quarter 2013 

Productivity 2.3 1.8 2.1 1.5 1.3 1.3 2.6 3.0 0.3 -0.1

Output 3.8 3.4 3.5 3.2 4.7 5.0 6.9 7.5 2.3 2.4

Hours 1.4 1.6 1.5 1.7 3.4 3.6 4.2 4.4 2.0 2.4

Hourly compensation 1.9 1.7 1.7 1.5 1.3 1.2 1.7 1.7 0.6 0.2

Real hourly compensation 0.6 0.8 0.5 0.6 0.1 0.4 0.5 0.8 -0.6 -0.6

Unit labor costs -0.4 -0.1 -0.4 -0.1 0.1 -0.1 -0.9 -1.3 0.3 0.3

Percent change, annual average 2013

Productivity 0.5 0.5 0.9 0.9 2.3 1.8 3.4 2.7 1.2 1.1

Output 2.2 2.2 2.5 2.5 2.9 2.5 4.4 3.7 1.3 1.1

Hours 1.7 1.7 1.5 1.5 0.7 0.7 1.0 1.0 0.1 0.1

Hourly compensation 1.6 1.6 1.8 1.8 1.0 0.9 0.6 0.6 1.6 1.5

Real hourly compensation 0.1 0.1 0.3 0.3 -0.5 -0.5 -0.8 -0.9 0.1 0.1

Unit labor costs 1.1 1.1 0.8 0.8 -1.3 -0.9 -2.7 -2.0 0.3 0.5

Table C. Nonfinancial corporations: preliminary fourth-quarter and annual averages 2013 measures

Productivity Output Hours

Hourly 

compensation

Real hourly 

compensation

Unit labor 

costs Unit profits

Implicit price 

deflator

Percent change, annual rate, fourth quarter 2013

Q to Q 2.1 4.3 2.1 1.8 0.5 -0.4 1.6 0.4

Y to Y 0.0 2.3 2.3 -0.1 -1.3 -0.2 3.1 0.9

Percent change, annual average 2013

2013 0.0 2.1 2.0 0.8 -0.7 0.7 3.1 1.2

-3- 
TECHNICAL NOTES

Labor Hours: Hours data for the labor productivity and cost measures include hours for all persons 

working in the sector—wage and salary workers, the self-employed and unpaid family workers. The 

primary source of hours and employment data is the BLS Current Employment Statistics (CES) 

program, which provides monthly survey data on the number of jobs held by wage and salary workers in 

nonfarm establishments. The CES also provides average weekly paid hours of production and 

nonsupervisory workers in these establishments. Weekly paid hours are adjusted to hours at work using 

data from the National Compensation Survey (NCS). The BLS Hours at Work survey, conducted for 

this purpose, was used for earlier years. The Office of Productivity and Technology estimates average 

weekly hours at work for nonproduction and supervisory workers using information from the Current 

Population Survey (CPS), the CES, and the NCS. 

Data from the CPS are used for farm labor, nonfarm proprietors, and nonfarm unpaid family 

workers. Estimates of labor input for government enterprises are derived from the CPS, the CES, and 

the National Income and Product Accounts (NIPA) prepared by the Bureau of Economic Analysis 

(BEA) of the Department of Commerce.

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

each place of employment. In contrast, the CPS features measures of employment that count each person 

only once and classify each person according to his or her primary job; hours worked at all jobs by that 

person accrue to his or her primary job. However, the CPS also collects more detailed information on 

employment and hours worked at primary jobs and all other jobs, separately. The BLS productivity 

measures use the more detailed information on employment and hours to assign all hours worked to the 

correct industrial sector and avoid duplicating hours data from the CES. 

Output: Business sector output is a chain-type, current-weighted index constructed after excluding from 

gross domestic product (GDP) the following outputs: general government, nonprofit institutions, and 

private households (including owner-occupied housing). Corresponding exclusions also are made in 

labor inputs. Business output accounted for about 76 percent of the value of GDP in 2013. Nonfarm 

business, which excludes farming, accounted for about 74 percent of GDP in 2013. 

Annual indexes for manufacturing and its durable and nondurable goods components are 

constructed by deflating current-dollar industry value of production data from the U.S. Bureau of the 

Census with deflators from the BLS. These deflators are based on data from the BLS producer price 

program and other sources. The industry shipments are aggregated using annual weights, and intrasector 

transactions are removed. Quarterly manufacturing output measures are based on the index of industrial 

production prepared monthly by the Board of Governors of the Federal Reserve System, adjusted to be 

consistent with annual indexes of manufacturing sector output prepared by BLS. Durables include the 

following 3-digit NAICS industries: wood product manufacturing; nonmetallic mineral product 

manufacturing; primary metal manufacturing; fabricated metal product manufacturing; machinery 

manufacturing; computer and electronic product manufacturing; electrical equipment and appliance 

manufacturing; transportation equipment manufacturing; furniture and related product manufacturing; 

and miscellaneous manufacturing. Nondurables include: food manufacturing; beverage and tobacco 

product manufacturing; textile mills; textile product mills; apparel manufacturing; leather and allied 

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

products manufacturing; chemical manufacturing; and plastics and rubber products manufacturing. 

Nonfinancial corporate output is a chain-type, current-weighted index calculated on the basis of 

the costs incurred and the incomes earned from production. The output measure excludes the following 

outputs from GDP: general government; nonprofit institutions; private households; unincorporated 

business; and those corporations classified as offices of bank holding companies, offices of other 

holding companies, or offices in the finance and insurance sector. Nonfinancial corporations accounted 

for about 49 percent of the value of GDP in 2013. 

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; 

-4- 
capital investment; level of output; utilization of capacity, energy, and materials; the organization of 

production; managerial skill; and the characteristics and effort of the work force. 

Labor Compensation: 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: The measures of unit labor costs in this release describe the relationship between 

compensation per hour and productivity, or real output per hour, and can be used as an indicator of 

inflationary pressure on producers. Increases in hourly compensation increase unit labor costs; labor 

productivity increases offset compensation increases and lower unit labor costs. 

Presentation of the data: The quarterly data in this release are presented in three ways: as 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. 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) 

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.

-5- 
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)

2014 I -1.8 -0.2 1.6 2.7 0.8 4.7 -2.6 1.4 

2013 ANNUAL 0.9 2.5 1.5 1.8 0.3 0.8 2.4 r 1.5 

2013 IV 2.1 r 3.5 r 1.5 r 1.7 r 0.5 r -0.4 r 2.6 r 0.9 r

 III 3.2 5.6 2.3 0.9 -1.1 r -2.2 7.8 2.1 

 II 1.9 3.4 1.4 3.9 3.4 r 1.9 -1.7 0.3 

 I 0.3 1.4 1.1 -4.7 -5.8 r -4.9 11.4 1.8 

2012 ANNUAL 1.4 3.6 2.2 2.6 0.5 1.2 2.6 1.8 

2012 IV -1.6 0.2 1.9 10.4 7.8 r 12.3 -11.5 1.2 

 III 1.7 3.6 1.8 0.4 -1.3 r -1.3 7.5 2.5 

 II 1.2 1.6 0.4 1.8 0.4 r 0.6 3.9 2.0 

 I 1.5 4.9 3.3 9.0 6.7 r 7.4 -5.4 1.6 

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

 Percent change from corresponding quarter of previous year

2014 I 1.3 3.1 1.7 2.3 0.9 1.0 1.4 1.2 

2013 ANNUAL 0.9 2.5 1.5 1.8 0.3 0.8 2.4 r 1.5 

2013 IV 1.9 r 3.5 r 1.6 0.4 -0.8 r -1.4 4.9 r 1.3 

 III 0.9 2.6 1.7 2.5 1.0 r 1.6 1.1 1.4 

 II 0.6 2.1 1.5 2.4 0.9 1.8 1.0 1.5 

 I 0.4 1.7 1.3 1.8 0.2 r 1.5 2.4 1.9 

2012 ANNUAL 1.4 3.6 2.2 2.6 0.5 1.2 2.6 1.8 

2012 IV 0.7 2.6 1.9 5.3 3.3 r 4.6 -1.7 1.8 

 III 2.0 4.1 2.1 1.6 0.0 r -0.4 4.4 1.7 

 II 1.5 3.6 2.1 2.1 0.2 0.6 3.3 1.8 

 I 1.5 4.3 2.7 1.4 -1.4 -0.1 4.7 2.0 

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

 Indexes 2009=100

2014 I 106.6 113.8 106.8 110.5 100.8 103.7 112.9 107.6 

2013 ANNUAL 106.1 r 112.2 r 105.7 r 109.1 r 100.4 r 102.8 r 112.2 r 106.7 r

2013 IV 107.1 r 113.9 r 106.4 r 109.8 r 100.6 r 102.6 r 113.6 r 107.2 r

 III 106.5 112.9 106.0 109.3 100.5 r 102.7 112.9 106.9 

 II 105.7 111.4 105.4 109.1 100.8 r 103.2 110.8 106.4 

 I 105.2 110.5 105.0 108.1 99.9 r 102.7 111.3 106.3 

2012 ANNUAL 105.1 109.5 104.1 107.2 100.1 102.0 109.6 105.1 

2012 IV 105.1 110.1 104.7 109.4 101.4 r 104.0 108.3 105.8 

 III 105.5 110.0 104.3 106.7 99.5 r 101.1 111.7 105.5 

 II 105.1 109.1 103.8 106.6 99.8 r 101.4 109.7 104.9 

 I 104.8 108.6 103.7 106.1 99.7 r 101.3 108.6 104.4 

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

See footnotes following Table 6. May 7, 2014

r=revised Source: Bureau of Labor Statistics

-6- 
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)

2014 I -1.7 0.3 2.0 2.4 0.5 4.2 -2.7 1.1 

2013 ANNUAL 0.5 2.2 1.7 1.6 0.1 1.1 1.6 r 1.3 

2013 IV 2.3 r 3.8 r 1.4 r 1.9 r 0.6 r -0.4 r 3.8 r 1.4 

 III 3.5 5.4 1.9 1.3 -0.7 r -2.1 8.5 2.4 

 II 1.8 3.3 1.5 3.8 3.3 r 2.0 -0.7 0.8 

 I -1.8 -0.3 1.6 -5.3 -6.4 r -3.5 6.8 0.7 

2012 ANNUAL 1.5 3.7 2.2 2.6 0.5 1.2 2.7 1.8 

2012 IV -1.5 0.7 2.2 10.2 7.5 r 11.8 -12.1 0.8 

 III 2.1 4.2 2.0 0.3 -1.4 r -1.8 7.7 2.2 

 II 1.1 1.6 0.5 1.8 0.4 r 0.7 4.0 2.1 

 I 1.7 5.0 3.2 9.2 6.9 r 7.4 -5.6 1.5 

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

 Percent change from corresponding quarter of previous year

2014 I 1.4 3.2 1.7 2.3 0.9 0.9 2.1 1.4 

2013 ANNUAL 0.5 2.2 1.7 1.6 0.1 1.1 1.6 r 1.3 

2013 IV 1.4 r 3.0 r 1.6 r 0.4 r -0.8 r -1.0 r 4.5 r 1.3 

 III 0.5 2.3 1.8 2.4 0.8 1.9 0.3 1.2 

 II 0.1 1.9 1.8 2.1 0.6 1.9 0.1 1.2 

 I 0.0 1.5 1.6 1.6 -0.1 1.6 1.3 1.5 

2012 ANNUAL 1.5 3.7 2.2 2.6 0.5 1.2 2.7 1.8 

2012 IV 0.8 2.8 2.0 5.3 3.3 4.4 -1.8 1.7 

 III 2.0 4.1 2.1 1.6 0.0 r -0.4 4.6 1.7 

 II 1.4 3.5 2.1 2.2 0.3 0.8 3.3 1.9 

 I 1.6 4.3 2.7 1.4 -1.3 -0.1 4.8 1.9 

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

 Indexes 2009=100

2014 I 106.4 113.9 107.0 110.5 100.8 103.9 111.0 106.9 

2013 ANNUAL 105.8 r 112.1 r 105.9 r 109.1 r 100.4 r 103.1 r 110.0 r 105.9 r

2013 IV 106.8 r 113.8 r 106.5 r 109.9 r 100.7 r 102.8 r 111.8 r 106.6 r

 III 106.2 112.8 106.1 109.4 100.5 r 103.0 110.8 106.2 

 II 105.3 111.3 105.6 109.0 100.7 r 103.5 108.5 105.6 

 I 104.9 110.4 105.3 108.0 99.9 r 103.0 108.7 105.4 

2012 ANNUAL 105.3 109.7 104.1 107.4 100.3 102.0 108.3 104.6 

2012 IV 105.4 110.5 104.8 109.5 101.5 r 103.9 106.9 105.2 

 III 105.8 110.3 104.3 106.9 99.7 r 101.1 110.4 105.0 

 II 105.2 109.2 103.8 106.8 100.1 r 101.5 108.4 104.4 

 I 104.9 108.7 103.6 106.3 100.0 r 101.3 107.3 103.8 

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

See footnotes following Table 6. May 7, 2014

r=revised Source: Bureau of Labor Statistics

-7- 
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)

2014 I 3.3 1.8 -1.4 3.3 1.4 0.1 

2013 ANNUAL 2.3 r 2.9 r 0.7 1.0 r -0.5 -1.3 r

2013 IV 1.3 4.7 r 3.4 r 1.3 r 0.1 r 0.1 r

 III 0.5 r 1.7 r 1.1 0.5 -1.5 r -0.1 r

 II 3.7 r 1.5 r -2.2 2.9 2.4 r -0.8 r

 I 3.1 r 4.8 r 1.7 -0.8 -1.9 r -3.7 r

2012 ANNUAL 1.9 r 4.3 r 2.3 1.9 -0.2 0.0 r

2012 IV 2.3 2.7 0.4 4.1 1.5 r 1.8 

 III 0.8 r 1.9 r 1.1 -2.5 -4.1 r -3.2 r

 II 2.1 r 3.4 r 1.3 0.6 -0.8 r -1.4 r

 I 4.2 r 7.5 r 3.1 11.3 8.9 r 6.7 r

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

 Percent change from corresponding quarter of previous year

2014 I 2.2 2.4 0.2 2.0 0.6 -0.2 

2013 ANNUAL 2.3 r 2.9 r 0.7 1.0 r -0.5 -1.3 r

2013 IV 2.1 r 3.2 r 1.0 r 1.0 r -0.2 r -1.1 r

 III 2.4 r 2.7 r 0.3 1.6 0.1 -0.7 r

 II 2.5 r 2.7 r 0.3 0.9 -0.5 -1.5 r

 I 2.0 r 3.2 r 1.1 0.3 -1.3 -1.7 r

2012 ANNUAL 1.9 r 4.3 r 2.3 1.9 -0.2 0.0 r

2012 IV 2.3 r 3.9 r 1.5 3.2 1.3 0.9 r

 III 1.6 r 4.2 r 2.6 1.0 -0.7 -0.6 r

 II 2.6 5.0 r 2.4 2.0 0.1 -0.5 r

 I 1.2 r 4.0 r 2.8 1.3 -1.5 0.1 r

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

 Indexes 2009=100

2014 I 113.4 119.5 105.4 108.1 98.6 95.4 

2013 ANNUAL 111.9 r 117.6 r 105.1 r 106.7 r 98.3 r 95.4 r

2013 IV 112.5 r 118.9 r 105.8 r 107.2 r 98.3 r 95.4 r

 III 112.1 r 117.6 r 104.9 106.9 98.2 r 95.3 r

 II 112.0 r 117.1 r 104.6 106.8 98.6 r 95.4 r

 I 110.9 r 116.7 r 105.2 106.0 98.0 r 95.6 r

2012 ANNUAL 109.4 r 114.2 r 104.4 105.7 98.8 96.6 r

2012 IV 110.1 r 115.3 r 104.7 106.2 98.5 r 96.5 r

 III 109.5 r 114.5 r 104.6 105.2 98.1 r 96.0 r

 II 109.3 r 114.0 r 104.3 105.8 99.1 r 96.8 r

 I 108.7 r 113.0 r 104.0 105.7 99.3 r 97.2 r

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

See footnotes following Table 6. May 7, 2014

r=revised Source: Bureau of Labor Statistics

-8- 
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)

2014 I 3.6 1.6 -1.9 3.6 1.6 -0.1 

2013 ANNUAL 3.4 r 4.4 r 1.0 0.6 -0.8 r -2.7 r

2013 IV 2.6 r 6.9 r 4.2 r 1.7 0.5 r -0.9 r

 III 2.0 r 3.6 r 1.6 0.9 -1.1 r -1.0 r

 II 5.2 r 2.9 r -2.1 2.5 2.0 r -2.6 r

 I 3.4 r 6.4 2.9 -1.5 -2.6 r -4.7 r

2012 ANNUAL 4.1 r 7.2 r 2.9 1.5 -0.6 -2.5 r

2012 IV 3.7 r 4.1 r 0.3 4.3 1.8 r 0.6 r

 III 1.4 r 2.0 r 0.6 -3.4 -4.9 r -4.7 r

 II 4.7 r 6.7 r 1.9 -1.2 -2.5 r -5.7 r

 I 8.8 r 12.2 r 3.1 12.8 10.5 r 3.7 r

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

 Percent change from corresponding quarter of previous year

2014 I 3.3 3.8 0.4 2.2 0.7 -1.1 

2013 ANNUAL 3.4 r 4.4 r 1.0 0.6 -0.8 r -2.7 r

2013 IV 3.3 r 4.9 r 1.6 0.9 -0.3 -2.3 r

 III 3.6 r 4.2 r 0.6 1.5 0.0 -1.9 r

 II 3.4 r 3.8 r 0.4 0.4 -1.0 -2.9 r

 I 3.3 r 4.8 r 1.4 -0.5 -2.1 -3.6 r

2012 ANNUAL 4.1 r 7.2 r 2.9 1.5 -0.6 -2.5 r

2012 IV 4.6 r 6.2 r 1.5 3.0 1.0 r -1.6 r

 III 3.8 r 7.1 r 3.2 0.3 -1.3 -3.3 r 

 II 5.3 r 8.7 3.2 1.8 -0.1 -3.3 r

 I 2.8 r 6.9 r 4.0 1.0 -1.8 -1.8 r

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

 Indexes 2009=100

2014 I 123.9 133.9 108.1 107.2 97.7 86.5 

2013 ANNUAL 121.6 r 130.9 r 107.7 r 105.6 r 97.3 r 86.9 r

2013 IV 122.8 r 133.4 r 108.6 r 106.3 r 97.3 r 86.5 r

 III 122.0 r 131.2 r 107.5 105.8 97.2 r 86.7 r

 II 121.4 r 130.0 r 107.1 105.6 97.5 r 86.9 r

 I 119.9 r 129.1 r 107.7 104.9 97.0 r 87.5 r

2012 ANNUAL 117.6 r 125.4 r 106.6 105.0 98.1 89.3 r

2012 IV 118.9 r 127.1 r 106.9 105.3 97.7 r 88.6 r

 III 117.8 r 125.9 r 106.8 104.2 97.2 r 88.4 r

 II 117.4 r 125.2 r 106.6 105.1 98.5 r 89.5 r

 I 116.1 r 123.2 r 106.2 105.4 99.1 r 90.8 r

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

See footnotes following Table 6. May 7, 2014

r=revised Source: Bureau of Labor Statistics

-9- 
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)

2014 I 2.5 2.0 -0.5 2.9 1.0 0.4 

2013 ANNUAL 1.2 r 1.3 r 0.1 1.6 r 0.1 0.3 r

2013 IV 0.3 r 2.3 r 2.0 r 0.6 r -0.6 0.3 

 III -0.8 r -0.4 r 0.4 -0.5 -2.5 r 0.4 r

 II 2.2 r -0.1 r -2.3 3.7 3.2 r 1.4 r

 I 3.4 r 3.1 r -0.3 0.4 -0.8 r -2.9 r

2012 ANNUAL 0.0 r 1.2 r 1.3 2.4 0.3 2.4 r

2012 IV 0.6 r 1.2 r 0.7 3.6 1.1 r 3.0 r

 III -0.2 r 1.7 r 1.9 -0.8 -2.4 r -0.5 r

 II -0.6 r -0.2 r 0.4 3.9 2.5 r 4.6 r

 I -0.6 r 2.6 r 3.2 8.3 6.0 r 9.0 r

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

 Percent change from corresponding quarter of previous year

2014 I 1.0 0.9 -0.1 1.7 0.2 0.6 

2013 ANNUAL 1.2 r 1.3 r 0.1 1.6 r 0.1 0.3 r

2013 IV 1.2 r 1.2 -0.1 r 1.0 r -0.2 r -0.2 

 III 1.3 r 0.9 r -0.4 1.8 0.2 0.4 

 II 1.5 r 1.5 r 0.0 1.7 0.2 0.2 r

 I 0.8 r 1.4 r 0.7 1.8 0.1 1.0 r

2012 ANNUAL 0.0 r 1.2 r 1.3 2.4 0.3 2.4 r

2012 IV -0.2 r 1.3 r 1.5 3.7 1.8 3.9 r

 III -0.4 r 1.1 r 1.5 2.1 0.4 2.5 r

 II 0.2 1.3 1.1 2.3 0.3 2.1 r

 I 0.5 r 1.3 r 0.8 1.6 -1.2 1.1 r

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

 Indexes 2009=100

2014 I 106.2 107.3 101.0 109.3 99.7 102.9 

2013 ANNUAL 105.5 r 106.4 r 100.9 r 108.2 r 99.6 r 102.6 r

2013 IV 105.6 r 106.8 r 101.2 r 108.5 r 99.4 r 102.8 r

 III 105.5 r 106.2 r 100.7 108.4 99.6 r 102.7 r

 II 105.7 r 106.3 r 100.6 108.5 100.2 r 102.6 r

 I 105.1 r 106.3 r 101.1 107.5 99.4 r 102.3 r

2012 ANNUAL 104.2 r 105.1 r 100.8 106.6 99.6 102.2 r

2012 IV 104.3 r 105.5 r 101.2 107.4 99.6 r 103.0 r

 III 104.1 r 105.2 r 101.1 106.5 99.4 r 102.3 r

 II 104.2 r 104.8 r 100.6 106.7 100.0 r 102.4 r

 I 104.3 r 104.8 r 100.5 105.7 99.3 r 101.3 r

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

See footnotes following Table 6. May 7, 2014

r=revised Source: Bureau of Labor Statistics

-10- 
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) 

2013 ANNUAL 0.0 2.1 2.0 0.8 -0.7 0.7 1.2 0.9 3.1 1.2 

2013 IV 2.1 4.3 2.1 1.8 0.5 -0.4 1.3 0.2 1.6 0.4 

 III -0.8 r 1.6 r 2.4 0.6 r -1.4 r 1.5 r 3.3 r 2.1 2.6 r 2.1 

 II 3.3 4.9 1.6 3.7 3.2 r 0.4 -5.6 -1.6 8.0 -0.3 

 I -4.2 -1.3 3.1 -6.2 -7.3 r -2.1 9.1 1.5 0.3 1.3 

2012 ANNUAL 1.4 3.7 2.3 2.8 0.7 1.4 0.2 1.0 3.8 1.4 

2012 IV 4.8 6.4 1.5 7.9 5.3 r 3.0 -4.2 0.6 9.6 1.8 

 III -3.4 -2.0 1.5 0.2 -1.5 r 3.7 3.0 3.5 -7.4 1.8 

 II 0.7 1.6 0.8 1.1 -0.3 r 0.3 1.1 0.6 5.8 1.3 

 I 5.4 8.9 3.3 11.8 9.4 r 6.1 -0.6 3.8 -2.2 2.9 

2011 ANNUAL 0.3 3.0 2.8 2.1 -1.0 1.9 0.7 1.5 7.7 2.3 

2011 IV 2.2 4.5 2.3 -3.9 -5.4 r -6.0 -1.3 -4.5 0.8 -3.7 

 III -3.8 -0.7 3.2 1.1 -1.5 r 5.1 3.2 4.5 7.6 4.9 

 II 2.1 6.4 4.2 -2.1 -6.7 r -4.1 -1.8 -3.3 54.1 3.1 

 I 4.8 6.1 1.2 9.5 5.0 r 4.5 -0.3 2.9 -16.9 0.0 

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

 Percent change from corresponding quarter of previous year

2013 ANNUAL 0.0 2.1 2.0 0.8 -0.7 0.7 1.2 0.9 3.1 1.2 

2013 IV 0.0 2.3 2.3 -0.1 -1.3 -0.2 1.9 0.5 3.1 0.9 

 III 0.7 2.9 2.1 1.4 -0.2 r 0.7 0.5 r 0.6 5.1 r 1.2 

 II 0.0 1.9 1.9 1.2 -0.2 1.2 0.4 0.9 2.4 1.2 

 I -0.6 1.1 1.7 0.6 -1.0 r 1.2 2.1 1.5 1.9 1.6 

2012 ANNUAL 1.4 3.7 2.3 2.8 0.7 1.4 0.2 1.0 3.8 1.4 

2012 IV 1.8 3.6 1.8 5.1 3.2 3.2 -0.2 2.1 1.2 2.0 

 III 1.2 3.2 2.0 2.1 0.4 0.9 0.5 0.8 -0.9 0.5 

 II 1.1 3.5 2.4 2.3 0.4 1.3 0.6 1.0 2.9 1.3 

 I 1.4 4.7 3.2 1.5 -1.2 0.1 -0.2 0.0 13.1 1.7 

2011 ANNUAL 0.3 3.0 2.8 2.1 -1.0 1.9 0.7 1.5 7.7 2.3 

2011 IV 1.3 4.0 2.7 1.0 -2.2 r -0.3 -0.1 -0.2 8.5 1.0 

 III -0.7 2.1 2.8 2.1 -1.6 2.9 1.7 2.5 5.4 2.9 

 II 0.7 3.5 2.7 2.1 -1.2 1.4 0.4 1.0 12.8 2.6 

 I -0.2 2.6 2.8 3.3 1.2 3.5 0.9 2.6 4.1 2.8 

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

 Indexes 2009=100

2013 ANNUAL 107.2 115.2 107.5 107.6 99.1 100.4 98.7 99.9 148.7 105.0 

2013 IV 107.7 116.7 108.3 108.3 99.2 100.6 99.0 100.0 150.3 105.3 

 III 107.1 r 115.4 r 107.8 107.8 r 99.1 r 100.7 r 98.7 r 100.0 r 149.7 r 105.2 

 II 107.3 115.0 107.1 107.7 99.4 r 100.3 97.9 99.5 148.7 104.6 

 I 106.5 113.6 106.7 106.7 98.7 r 100.2 99.3 99.9 145.9 104.7 

2012 ANNUAL 107.1 112.9 105.4 106.8 99.8 99.7 97.5 99.0 144.2 103.7 

2012 IV 107.6 114.0 105.9 108.4 100.6 r 100.7 97.2 99.5 145.8 104.4 

 III 106.4 112.2 105.5 106.4 99.3 r 100.0 98.2 99.4 142.5 103.9 

 II 107.3 112.8 105.1 106.4 99.6 r 99.1 97.5 98.6 145.3 103.4 

 I 107.1 112.4 104.9 106.1 99.7 r 99.0 97.2 98.4 143.2 103.1 

2011 ANNUAL 105.7 108.8 103.0 103.9 99.1 98.3 97.4 98.0 139.0 102.3 

2011 IV 105.7 110.0 104.1 103.2 97.5 97.6 97.4 97.5 144.0 102.4 

 III 105.2 108.8 103.5 104.2 98.8 r 99.1 97.7 98.6 143.8 103.3 

 II 106.2 109.0 102.7 103.9 99.2 r 97.9 96.9 97.6 141.2 102.1 

 I 105.6 107.3 101.6 104.5 101.0 r 98.9 97.4 98.4 126.7 101.3 

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

See footnotes following Table 6. May 7, 2014

r=revised Source: Bureau of Labor Statistics

-11- 
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 1.5 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 2013. 

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 selfemployed. 

(2) The change for recent quarters is based on the Consumer Price Index for all urban consumers 

(CPI-U). The trend from 1978-2013 is based on the Consumer Price Index research series (CPIU-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.

-12-