Internet address: http://www.bls.gov/lpc/ USDL 08-1123 

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, AUG. 8, 2008. 

PRODUCTIVITY AND COSTS 

Second Quarter 2008, Preliminary 

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

productivity data—as measured by output per hour of all persons—for the second quarter of 2008. The 

seasonally adjusted annual rates of productivity change in the second quarter were: 

 2.3 percent in the business sector and 

 2.2 percent in the nonfarm business sector. 

Productivity gains in both sectors reflected output increases and small declines in hours worked. 

 In manufacturing, the preliminary productivity changes in the second quarter were: 

-1.4 percent in manufacturing, 

-3.5 percent in durable goods manufacturing, and 

0.7 percent in nondurable goods manufacturing. 

 Productivity in the total manufacturing sector fell 1.4 percent in the second quarter of 2008, as 

both output and hours worked decreased. The decline in productivity was concentrated in the durable 

goods subsector. Output and hours in manufacturing, which includes about 12 percent of U.S. 

business-sector employment, tend to vary more from quarter to quarter than data for the aggregate 

business and nonfarm business sectors. Second-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 7). 

Data in this release reflect the regular multi-year revision to the national income and product accounts 

released by the Bureau of Economic Analysis of the U.S. Department of Commerce on July 31. See 

Revised Measures, page 4. 

 
2 

Table A. Productivity and costs: Preliminary second-quarter 2008 measures 

(Seasonally adjusted annual rates) 

Sector 

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation 

Unit 

labor 

costs 

 Percent change from preceding quarter 

Business 2.3 1.5 -0.7 3.8 -1.2 1.5 

Nonfarm business 2.2 1.7 -0.5 3.6 -1.4 1.3 

Manufacturing -1.4 -3.5 -2.0 4.6 -0.4 6.1 

 Durable -3.5 -5.5 -2.1 5.0 0.0 8.8 

 Nondurable 0.7 -1.3 -2.0 3.8 -1.2 3.0 

 Percent change from same quarter a year ago 

Business 2.7 1.7 -0.9 4.2 -0.1 1.5 

Nonfarm business 2.8 1.8 -1.0 4.3 0.1 1.5 

Manufacturing 2.6 -0.1 -2.7 4.6 0.3 1.9 

 Durable 2.7 0.2 -2.5 4.3 0.0 1.6 

 Nondurable 2.6 -0.5 -3.1 5.0 0.7 2.3 

Business 

 Business sector output per hour increased 2.3 percent from the first quarter to the second 

quarter of 2008, as output increased 1.5 percent and hours of all persons engaged in the sector—

employees, proprietors, and unpaid family workers—fell 0.7 percent (seasonally adjusted annual rates). 

The increase in output was greater and the decline in hours was smaller than in the first quarter, when 

productivity rose 2.2 percent, as revised (tables A, B, and 1). Historically, from 2000 through 2007, 

business sector productivity had grown at an average annual rate of 2.5 percent. 

 Hourly compensation increased 3.8 percent in the second quarter of 2008, less than the 5.0 

percent gain in the first quarter. 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, fell 1.2 percent during the second quarter of 2008 

as consumer prices increased 5.0 percent (seasonally adjusted annual rates). 

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

at an annual rate of 1.5 percent during the second quarter of 2008. The implicit price deflator for the 

business sector, which reflects changes in both unit labor costs and unit nonlabor payments, increased 

0.6 percent in the second quarter of 2008 and 2.0 percent one quarter earlier. 

 
3 

Nonfarm Business 

 Productivity increased 2.2 percent in the nonfarm business sector during the second quarter of 

2008 as output grew 1.7 percent and hours at work declined 0.5 percent. Revised results for firstquarter 2008 show that productivity increased 2.6 percent, output rose 0.9 percent, and hours fell 1.6 

percent (tables A, B and 2). Nonfarm business output per hour had increased at an average annual rate 

of 2.5 percent from 2000 through 2007. 

 Hourly compensation in the nonfarm business sector increased 3.6 percent in the second quarter 

of 2008, compared to a 5.2 percent rise one quarter earlier. When the 5.0 percent annual rate of 

increase in consumer prices is taken into account, real hourly compensation fell 1.4 percent in the 

second quarter of 2008. This measure rose 0.8 percent in the first quarter. 

Unit labor costs increased 1.3 percent in the second quarter of 2008 and 1.5 percent over the 

last four quarters. The implicit price deflator for nonfarm business output rose 0.5 percent in the 

second quarter of 2008 and 2.1 percent in the first quarter. 

-6

-4

-2

0

2

4

6

8

10

12

2001 2002 2003 2004 2005 2006 2007 2008

Percent change

From previous quarter, compound annual rate

From same quarter a year ago

Chart 1. Output per Hour, Nonfarm Business, all persons, 2001:1-2007:4 Chart 1. Output per Hour, Nonfarm Business, all persons, 2001:1-2008:2

 

-6

-4

-2

0

2

4

6

8

10

12

2001 2002 2003 2004 2005 2006 2007 2008

Percent change

From previous quarter, compound annual rate

From same quarter a year ago

Chart 2. Unit Labor Costs, Nonfarm Business, all persons, 2001:1-2008:2

Manufacturing

 Productivity decreased 1.4 percent in manufacturing in the second quarter, as output fell 3.5 

percent and hours of all persons declined 2.0 percent. In durable goods industries, productivity fell 3.5 

percent—the largest drop since fourth-quarter 1990, when output per hour fell 4.6 percent. In 

nondurable goods industries, productivity grew 0.7 percent in the second quarter as hours fell faster 

than output (tables A, 3, 4, 5). In total manufacturing, output per hour increased 2.6 percent from the 

second quarter of 2007 to the second quarter of 2008; output declined slightly over the four quarters, 

0.1 percent, whereas hours fell by 2.7 percent. For the entire 2000-2007 period manufacturing 

productivity increased at a 3.7 percent annual rate. 

 During the second quarter of 2008, hourly compensation grew 4.6 percent in total 

manufacturing, 5.0 percent in durable manufacturing and 3.8 percent in nondurable manufacturing 

(seasonally adjusted annual rates). Manufacturing hourly compensation also increased 4.6 percent over 

the last four quarters. When the increase in consumer prices is taken into account, the real hourly 

compensation of all manufacturing workers fell 0.4 percent in the second quarter. 

 
4 

 Unit labor costs in manufacturing jumped 6.1 percent in the second quarter of 2008. The 

growth in unit labor costs from the second quarter of 2007 was 1.9 percent, reversing the 0.8 percent 

decline from the first quarter of 2007 to the first quarter of 2008 (chart 4). The 2000-2007 long-term 

average annual rate of growth for unit labor costs is 0.3 percent. 

-16

-12

-8

-4

0

4

8

12

16

2001 2002 2003 2004 2005 2006 2007 2008

Percent change

From previous quarter, compound annual rate

From same quarter a year ago

Chart 3. Output per Hour, Manufacturing, all persons, 2001:1-2008:2

 

-16

-12

-8

-4

0

4

8

12

16

2001 2002 2003 2004 2005 2006 2007 2008

Percent change

From previous quarter, compound annual rate

From same quarter a year ago

Chart 4. Unit Labor Costs, Manufacturing, all persons, 2001:1-2008:2

Revised Measures 

 Output data for the business and nonfarm business sectors, and the compensation series for all 

sectors, incorporate the revised national income and product accounts (NIPA) data released by the 

Bureau of Economic Analysis, U.S. Department of Commerce, on July 31. Revisions for these sectors 

go back to the first quarter of 2005. Table B presents previous and revised productivity and related 

measures for the major sectors: business, nonfarm business and manufacturing, for the first quarter of 

2008 and for the years 2007 through 2005 (see page 5). 

 In the first quarter of 2008, output and hours were revised up in all three sectors. In both the 

business and manufacturing sectors the revisions to hours were greater than to output, resulting in 

downward revisions to productivity. In nonfarm business the revision to hours offset the revision to 

output, and productivity increased at the same 2.6 percent rate reported June 4. In business and 

nonfarm business there were small upward revisions to hourly compensation and unit labor costs. In 

manufacturing, hourly compensation growth was revised down much more than productivity; the 

downward revision to unit labor costs was due solely to the downward revision to hourly 

compensation. 

Growth in output and output per hour were revised down in the business and nonfarm business 

sectors in 2007 and 2005, and were little changed in 2006. In both sectors, the average annual rate of 

productivity growth from 2004 to 2007 was 1.4 percent, compared to 3.3 percent from 2000 to 2004. 

Manufacturing sector output per hour was not revised historically. 

For the year 2007, hourly compensation was revised down in all three sectors, leading to 

downward revisions to unit labor costs. For 2006, manufacturing hourly compensation and unit labor 

costs were revised up; for 2005 these same measures were revised down. Revised quarterly series 

appear in tables 1-5 and appendix tables 1-5. The full historical revisions including the quarterly 

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

 
5 

Table B. Previous and revised productivity and related measures 

Percent changes at annual ra s te

Sector 

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation 

Unit 

labor 

costs 

First Quarter 2008 

Business: 

 Previous.................. 2.4 0.6 -1.7 4.8 0.4 2.3 

 Revised................... 2.2 0.7 -1.5 5.0 0.6 2.7 

Nonfarm business: 

 Previous.................. 2.6 0.7 -1.8 4.9 0.6 2.2 

 Revised................... 2.6 0.9 -1.6 5.2 0.8 2.5 

Manufacturing: 

 Previous.................. 3.6 -1.2 -4.7 7.9 3.5 4.2 

 Revised................... 3.4 -0.8 -4.0 6.2 1.8 2.8 

Annual average 2007 

Business: 

 Previous........................ 1.9 2.3 0.4 5.1 2.2 3.2 

 Revised......................... 1.5 2.0 0.5 4.2 1.3 2.6 

Nonfarm business: 

 Previous........................ 1.8 2.3 0.5 5.1 2.2 3.2 

 Revised......................... 1.4 2.0 0.5 4.1 1.3 2.7 

Manufacturing: 

 Previous........................ 3.4 1.6 -1.7 5.6 2.7 2.1 

 Revised......................... 3.4 1.6 -1.7 3.5 0.7 0.1 

Annual average 2006 

Business: 

 Previous........................ 1.0 3.1 2.1 4.0 0.7 2.9 

 Revised......................... 0.9 3.0 2.1 3.8 0.5 2.9 

Nonfarm business: 

 Previous........................ 1.0 3.2 2.2 3.9 0.6 2.9 

 Revised......................... 1.0 3.2 2.2 3.8 0.5 2.8 

Manufacturing: 

 Previous........................ 1.1 1.8 0.8 2.8 -0.5 1.7 

 Revised......................... 1.1 1.8 0.8 4.1 0.8 3.0 

Annual average 2005 

Business: 

 Previous........................ 2.0 3.6 1.6 4.0 0.6 2.0 

 Revised......................... 1.8 3.5 1.6 4.0 0.6 2.1 

Nonfarm business: 

 Previous........................ 1.9 3.6 1.7 4.0 0.6 2.1 

 Revised......................... 1.7 3.4 1.7 4.0 0.6 2.2 

Manufacturing: 

 Previous........................ 4.9 3.7 -1.2 4.2 0.9 -0.6 

 Revised......................... 4.9 3.7 -1.2 1.9 -1.4 -2.8 

 
6 

Revised Measures: Nonfinancial Corporations 

 Output, based on the income side of the NIPA for nonfinancial corporations, was revised down 

sharply in the first quarter to -0.1 percent, leading to a corresponding downward revision to 

productivity (table C). Unit labor costs were revised up as the revision to productivity was greater than 

a downward revision to hourly compensation. Unit profits fell 14.7 percent, rather than 1.5 percent as 

reported June 4. From the first quarter of 2007 through the first quarter of 2008, productivity increased 

2.1 percent (table 6). Productivity had increased at an average annual rate of 2.7 percent from 2000 

through 2007. 

Table C. Nonfinancial corporations: Previous and revised productivity and cost measures 

Percent changes at nnual rat s a e

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation 

Unit 

labor 

costs 

Unit 

profits 

Implicit 

price 

deflator

First quarter 2008 

Previous......... 4.6 3.2 -1.4 5.9 1.5 1.2 -1.5 0.5 

Revised.......... 1.0 -0.1 -1.1 4.9 0.6 3.9 -14.7 0.5 

Annual average 2007 

Previous......... 1.5 2.2 0.7 4.8 1.9 3.2 -5.8 1.6 

Revised.......... 0.9 1.6 0.7 4.1 1.3 3.2 -9.0 1.5 

Annual average 2006 

Previous... 0.7 3.0 2.2 3.5 0.2 2.8 5.5 2.8 

Revised.......... 2.1 4.4 2.2 3.6 0.3 1.5 12.2 2.8 

Annual average 2005 

Previous......... 1.4 3.1 1.7 3.8 0.4 2.4 6.6 2.9 

Revised.......... 2.6 4.3 1.7 3.7 0.4 1.1 12.7 2.9 

Next release date

 The next release of Productivity and Costs is scheduled for 8:30 a.m. EDT, Thursday, Sept. 

4, 2008. Revised second-quarter measures for business, nonfarm business, and manufacturing will be 

released at that time, along with preliminary measures for nonfinancial corporations. 

 
7 

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 78 percent of the value of GDP in 2000. Nonfarm 

business, which excludes farming, accounted for about 77 percent of GDP in 2000. 

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 54 percent of the value of GDP in 2000. 

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 

 
8 

and services produced per hour. Although these measures relate output to hours at work of all persons 

engaged in a sector, they do not measure the specific contribution of labor, capital, or any other factor 

of production. Rather, they reflect the joint effects of many influences, including changes in 

technology; capital investment; level of output; utilization of capacity, energy, and materials; the 

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

Labor Compensation: Estimates of labor compensation by major sector, required for measures of 

hourly compensation and unit labor costs, are based primarily on employee compensation data from the 

NIPA, prepared by the BEA. The compensation of employees in general government, nonprofit 

institutions and private households are subtracted from compensation of domestic employees to derive 

employee compensation for the business sector. The labor compensation of proprietors cannot be 

explicitly identified and must be estimated. This is done by assuming that proprietors have the same 

hourly compensation as employees in the same sector. The quarterly labor productivity and cost 

measures do not contain estimates of compensation for unpaid family workers. 

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

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

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

productivity increases offset compensation increases and lower unit labor costs. 

Presentation of the data: The quarterly data in this release are presented in three ways; as index 

number series where 1992=100, as percent changes from the corresponding quarter of the previous 

year, and as percent changes from the previous quarter presented at a compound annual rate. Annual 

data are presented both as index number series and percent changes from the previous year. 

 The index numbers and rates of change reported in the productivity and costs news release are 

rounded to one decimal place. All percent changes in this release and on the BLS web site are 

calculated using index numbers to three decimal places. These index numbers are available at the BLS 

web site, http://www.bls.gov/data/home.htm, or by contacting the BLS Division of Major Sector 

Productivity. (Telephone 202-691-5606 or email DPRWEB@BLS.GOV) 

Information in this release will be made available to sensory-impaired individuals upon request. 

Voice phone: 202-691-5606; Federal Relay Service number: 1-800-877-8339.

 
9 

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 

2006 I r136.1 r162.8 r119.7 r168.0 r120.6 r123.5 r133.4 r127.2 

 II r136.6 r164.0 r120.1 r168.1 r119.6 r123.1 r136.2 r128.0 

 III r135.9 r164.1 r120.8 r168.9 r119.1 r124.3 r136.2 r128.8 

 IV r135.9 r164.8 r121.2 r172.6 r122.1 r127.0 r133.4 r129.4 

 ANNUAL r136.1 r163.9 r120.4 r169.4 r120.3 r124.5 r134.8 r128.3 

2007 I r135.9 r164.5 r121.0 r174.7 r122.4 r128.5 r134.3 r130.7 

 II r137.6 r166.8 r121.2 r175.5 r121.7 r127.5 r137.4 r131.2 

 III r139.7 r169.0 r121.0 r177.1 r121.9 r126.8 r139.7 r131.6 

 IV r139.7 r168.8 r120.8 r179.0 r121.7 r128.1 r139.2 r132.2 

 ANNUAL r138.2 r167.3 r121.0 r176.5 r121.9 r127.7 r137.7 r131.4 

2008 I r140.5 r169.1 r120.3 r181.2 r121.9 r128.9 r139.5 r132.9 

 II 141.3 169.7 120.1 182.9 121.6 129.4 139.2 133.1 

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

 Percent change from previous quarter at annual rate(5) 

2006 I r2.6 r5.6 3.0 r5.5 r3.6 r2.8 r3.1 r3.0 

 II r1.4 r2.9 1.5 r0.2 r-3.3 r-1.2 r8.6 r2.6 

 III r-2.0 r0.3 r2.4 r2.0 r-1.9 r4.1 r-0.1 r2.4 

 IV r0.2 r1.7 r1.5 r9.0 r10.7 r8.8 r-8.0 r1.9 

 ANNUAL r0.9 r3.0 2.1 r3.8 r0.5 2.9 r3.3 r3.0 

2007 I r0.0 r-0.7 r-0.7 r4.8 r1.1 r4.8 r2.8 r4.0 

 II r5.0 r5.6 r0.6 r1.9 r-2.6 r-2.9 r9.6 r1.7 

 III r6.2 r5.5 -0.7 r3.6 r0.8 r-2.4 r6.9 r1.1 

 IV r0.1 r-0.6 -0.7 r4.4 r-0.6 r4.3 r-1.6 r2.0 

 ANNUAL r1.5 r2.0 r0.5 r4.2 r1.3 r2.6 r2.1 r2.4 

2008 I r2.2 r0.7 r-1.5 r5.0 r0.6 r2.7 r1.0 2.0 

 II 2.3 1.5 -0.7 3.8 -1.2 1.5 -0.8 0.6 

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

 Percent change from corresponding quarter of previous year 

2006 I r1.3 r3.6 2.3 4.2 0.5 r2.9 r3.9 r3.3 

 II r1.7 r3.5 1.8 4.0 r0.1 r2.3 5.2 r3.4 

 III 0.2 2.4 2.2 r2.9 r-0.4 r2.7 3.5 3.0 

 IV r0.5 r2.6 2.1 r4.1 r2.1 r3.6 r0.7 r2.5 

 ANNUAL r0.9 r3.0 2.1 r3.8 r0.5 2.9 r3.3 r3.0 

2007 I r-0.1 r1.0 r1.2 r3.9 r1.5 r4.1 r0.7 r2.7 

 II r0.8 r1.7 0.9 r4.4 r1.7 r3.6 r0.9 r2.5 

 III r2.8 r3.0 r0.2 r4.8 r2.4 r1.9 r2.6 r2.2 

 IV r2.8 r2.4 -0.4 r3.7 r-0.3 r0.9 r4.3 r2.2 

 ANNUAL r1.5 r2.0 r0.5 r4.2 r1.3 r2.6 r2.1 r2.4 

2008 I 3.4 r2.8 r-0.6 r3.7 r-0.4 r0.4 r3.9 r1.7 

 II 2.7 1.7 -0.9 4.2 -0.1 1.5 1.3 1.4 

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

See footnotes following Table 6. August 8, 2008 

r=revised Source: Bureau of Labor Statistics 

 
10 

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 

2006 I r135.1 r163.2 r120.8 r166.8 r119.7 r123.5 r135.5 r127.9 

 II r135.7 r164.3 r121.1 r167.1 r118.9 r123.1 r138.6 r128.8 

 III r134.9 r164.4 r121.9 r167.9 r118.3 r124.4 r138.3 r129.5 

 IV r135.0 r165.0 r122.2 r171.7 r121.4 r127.1 r134.9 r130.0 

 ANNUAL r135.2 r164.2 r121.5 r168.3 r119.6 r124.5 r136.8 r129.1 

2007 I r135.0 r164.7 r122.0 r173.7 r121.8 r128.7 r135.2 r131.1 

 II r136.4 r167.0 r122.4 r174.1 r120.7 r127.7 r138.2 r131.5 

 III r138.3 r169.2 r122.3 r175.5 r120.9 r126.9 r140.3 r131.8 

 IV r138.6 r168.9 r121.9 r177.8 r121.0 r128.3 r139.8 r132.5 

 ANNUAL r137.1 r167.5 r122.2 r175.3 r121.1 r127.9 r138.4 r131.7 

2008 I r139.5 r169.3 r121.4 r180.1 r121.2 r129.1 r140.3 r133.2 

 II 140.3 170.0 121.2 181.7 120.8 129.5 140.0 133.4 

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

 Percent change from previous quarter at annual rate(5) 

2006 I r2.5 r6.0 r3.3 r5.2 r3.3 r2.6 r3.9 r3.1 

 II r1.8 r2.9 1.1 r0.7 r-2.8 r-1.1 r9.4 r2.9 

 III r-2.1 r0.3 2.4 r2.0 r-2.0 r4.1 r-0.9 r2.1 

 IV r0.2 r1.4 r1.2 r9.4 r11.0 r9.1 r-9.5 r1.5 

 ANNUAL 1.0 3.2 2.2 r3.8 r0.5 r2.8 r3.6 r3.1 

2007 I r0.0 r-0.9 -0.9 r4.9 r1.2 r4.9 r0.9 r3.4 

 II r4.1 r5.8 r1.6 r0.8 r-3.6 r-3.2 r9.4 r1.5 

 III r5.8 r5.5 r-0.3 3.3 r0.5 r-2.4 r6.3 r0.9 

 IV r0.8 r-0.7 -1.6 r5.4 r0.4 r4.5 r-1.6 r2.1 

 ANNUAL r1.4 r2.0 0.5 r4.1 r1.3 r2.7 r1.2 r2.1 

2008 I 2.6 r0.9 r-1.6 r5.2 r0.8 r2.5 r1.5 r2.1 

 II 2.2 1.7 -0.5 3.6 -1.4 1.3 -0.9 0.5 

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

 Percent change from corresponding quarter of previous year 

2006 I r1.3 r3.7 2.4 4.2 r0.5 r2.9 r4.3 r3.4 

 II r1.7 r3.7 2.0 r3.9 r0.0 2.2 r5.9 r3.6 

 III r0.3 r2.6 2.3 r2.9 r-0.5 2.6 r3.8 r3.1 

 IV r0.6 r2.6 2.0 r4.3 r2.2 r3.6 r0.5 r2.4 

 ANNUAL 1.0 3.2 2.2 r3.8 r0.5 r2.8 r3.6 r3.1 

2007 I r0.0 r0.9 0.9 r4.2 r1.7 r4.2 r-0.2 r2.5 

 II r0.5 r1.6 r1.1 r4.2 r1.5 r3.7 r-0.2 r2.1 

 III r2.5 r2.9 r0.4 r4.6 r2.2 r2.0 r1.5 r1.8 

 IV r2.7 r2.4 r-0.3 r3.6 r-0.4 r0.9 r3.7 r2.0 

 ANNUAL r1.4 r2.0 0.5 r4.1 r1.3 r2.7 r1.2 r2.1 

2008 I 3.3 r2.8 r-0.5 r3.6 r-0.5 r0.3 r3.8 r1.6 

 II 2.8 1.8 -1.0 4.3 0.1 1.5 1.3 1.4 

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

See footnotes following Table 6. August 8, 2008 

r=revised Source: Bureau of Labor Statistics 

 
11 

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 

2006 I 172.6 147.2 85.3 r170.9 r122.7 r99.0 

 II 172.7 147.4 85.4 r169.5 r120.7 r98.2 

 III 174.5 148.0 84.8 r170.3 r120.0 r97.6 

 IV 175.4 147.4 84.0 r174.6 r123.5 r99.5 

 ANNUAL 173.8 147.5 84.9 r171.3 r121.7 r98.6 

2007 I 177.0 147.8 83.5 r176.9 r124.0 r100.0 

 II 178.7 149.6 83.7 r176.4 r122.3 r98.7 

 III 180.6 151.2 83.7 r176.4 r121.4 r97.6 

 IV r182.5 r151.0 82.8 r179.7 r122.2 r98.5 

 ANNUAL r179.7 r149.9 83.4 r177.3 r122.5 r98.7 

2008 I r184.0 r150.7 r81.9 r182.4 r122.8 r99.1 

 II 183.3 149.4 81.5 184.5 122.7 100.6 

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

 Percent change from previous quarter at annual rate(5) 

2006 I -0.6 1.8 2.4 r14.3 r12.3 r15.0 

 II 0.2 0.6 0.4 r-3.1 r-6.5 r-3.3 

 III 4.3 1.6 -2.5 r1.8 r-2.1 r-2.3 

 IV 2.2 -1.7 -3.8 r10.4 r12.1 r8.0 

 ANNUAL 1.1 1.8 0.8 r4.1 r0.8 r3.0 

2007 I 3.6 1.2 -2.3 r5.5 r1.8 r1.8 

 II 3.8 4.9 1.0 r-1.1 r-5.5 r-4.8 

 III 4.5 4.3 -0.2 r-0.1 r-2.8 r-4.4 

 IV 4.2 -0.4 -4.4 r7.8 r2.7 r3.4 

 ANNUAL 3.4 1.6 -1.7 r3.5 r0.7 r0.1 

2008 I r3.4 r-0.8 r-4.0 r6.2 r1.8 r2.8 

 II -1.4 -3.5 -2.0 4.6 -0.4 6.1 

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

 Percent change from corresponding quarter of previous year 

2006 I 1.5 2.4 0.9 r5.4 r1.6 r3.8 

 II 0.4 2.1 1.7 r3.3 r-0.6 r2.9 

 III 0.9 2.3 1.4 r2.3 r-1.0 r1.4 

 IV 1.5 0.6 -0.9 r5.6 r3.6 r4.1 

 ANNUAL 1.1 1.8 0.8 r4.1 r0.8 r3.0 

2007 I 2.6 0.4 -2.1 r3.5 r1.1 r0.9 

 II 3.5 1.5 -1.9 r4.1 r1.4 r0.6 

 III 3.5 2.1 -1.3 r3.6 r1.2 r0.0 

 IV 4.0 2.5 -1.5 r2.9 r-1.0 r-1.1 

 ANNUAL 3.4 1.6 -1.7 r3.5 r0.7 r0.1 

2008 I 4.0 r2.0 r-1.9 r3.1 r-1.0 r-0.8 

 II 2.6 -0.1 -2.7 4.6 0.3 1.9 

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

See footnotes following Table 6. August 8, 2008 

r=revised Source: Bureau of Labor Statistics 

 
12 

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 

2006 I 198.8 179.6 90.3 r166.0 r119.2 r83.5 

 II 198.9 180.5 90.7 r164.6 r117.1 r82.7 

 III 201.7 181.1 89.8 r165.3 r116.5 r81.9 

 IV 202.4 180.1 89.0 r170.2 r120.4 r84.1 

 ANNUAL 200.4 180.3 90.0 r166.5 r118.3 r83.1 

2007 I 204.4 180.3 88.2 r173.0 r121.3 r84.7 

 II 207.9 183.9 88.4 r172.5 r119.6 r83.0 

 III 210.9 186.9 88.6 r172.2 r118.6 r81.7 

 IV r214.3 r187.0 87.3 r175.5 r119.4 r81.9 

 ANNUAL r209.4 r184.5 88.1 r173.3 r119.7 r82.8 

2008 I r215.4 r186.8 r86.7 r177.8 r119.7 r82.5 

 II 213.5 184.2 86.3 180.0 119.7 84.3 

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

 Percent change from previous quarter at annual rate(5) 

2006 I -1.8 0.4 2.3 r13.7 r11.7 r15.9 

 II 0.3 2.1 1.8 r-3.3 r-6.6 r-3.6 

 III 5.7 1.2 -4.3 r1.6 r-2.3 r-3.9 

 IV 1.4 -2.1 -3.4 r12.6 r14.4 r11.1 

 ANNUAL 2.2 3.3 1.1 r3.9 r0.6 r1.7 

2007 I 3.9 0.4 -3.4 r6.7 r3.0 r2.7 

 II 7.1 8.2 1.0 r-1.2 r-5.5 r-7.7 

 III 6.0 6.8 0.8 r-0.7 r-3.3 r-6.2 

 IV 6.6 0.3 -6.0 r7.9 r2.8 r1.2 

 ANNUAL 4.5 2.3 -2.0 r4.1 r1.3 r-0.3 

2008 I r2.1 r-0.4 r-2.5 r5.2 r0.9 r3.0 

 II -3.5 -5.5 -2.1 5.0 0.0 8.8 

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

 Percent change from corresponding quarter of previous year 

2006 I 3.2 4.8 1.6 r4.9 r1.1 r1.6 

 II 2.0 4.6 2.5 r3.1 r-0.8 r1.1 

 III 2.2 3.6 1.4 r1.9 r-1.5 r-0.4 

 IV 1.4 0.4 -1.0 r5.9 r3.9 r4.5 

 ANNUAL 2.2 3.3 1.1 r3.9 r0.6 r1.7 

2007 I 2.8 0.4 -2.4 r4.3 r1.8 r1.4 

 II 4.5 1.8 -2.5 r4.8 r2.1 r0.3 

 III 4.6 3.2 -1.3 r4.2 r1.8 r-0.3 

 IV 5.9 3.9 -1.9 r3.1 r-0.8 r-2.6 

 ANNUAL 4.5 2.3 -2.0 r4.1 r1.3 r-0.3 

2008 I r5.4 r3.6 r-1.7 r2.7 r-1.4 r-2.5 

 II 2.7 0.2 -2.5 4.3 0.0 1.6 

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

See footnotes following Table 6. August 8, 2008 

r=revised Source: Bureau of Labor Statistics 

 
13 

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 

2006 I 148.0 115.0 77.7 r178.0 r127.8 r120.2 

 II 148.4 114.8 77.3 r176.6 r125.7 r119.0 

 III 149.0 115.4 77.4 r177.8 r125.3 r119.3 

 IV 150.3 115.1 76.6 r180.4 r127.6 r120.0 

 ANNUAL 148.9 115.1 77.2 r178.2 r126.6 r119.6 

2007 I 151.2 115.6 76.5 r181.9 r127.5 r120.3 

 II 151.4 116.0 76.6 r181.4 r125.8 r119.9 

 III 152.7 116.4 76.3 r181.8 r125.2 r119.1 

 IV r152.9 r116.1 75.9 r185.3 r126.0 r121.2 

 ANNUAL r152.0 r116.0 76.3 r182.6 r126.1 r120.1 

2008 I r155.1 r115.8 r74.6 r188.8 r127.1 r121.8 

 II 155.4 115.4 74.3 190.6 126.7 122.7 

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

 Percent change from previous quarter at annual rate(5) 

2006 I 1.0 3.6 2.6 r15.5 r13.4 r14.4 

 II 1.1 -0.9 -1.9 r-3.1 r-6.5 r-4.1 

 III 1.5 2.2 0.6 r2.6 r-1.4 1.1 

 IV 3.5 -1.1 -4.4 r6.1 r7.7 r2.5 

 ANNUAL 0.2 0.3 0.1 r4.5 r1.1 r4.3 

2007 I 2.5 2.0 -0.5 r3.3 r-0.3 r0.8 

 II 0.4 1.3 0.9 r-1.0 r-5.3 r-1.4 

 III 3.5 1.6 -1.9 r0.7 r-2.0 r-2.7 

 IV 0.6 -1.1 -1.7 r7.9 r2.8 r7.3 

 ANNUAL 2.1 0.9 -1.2 r2.5 r-0.3 r0.4 

2008 I r5.9 r-1.2 r-6.7 r7.9 r3.5 r1.9 

 II 0.7 -1.3 -2.0 3.8 -1.2 3.0 

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

 Percent change from corresponding quarter of previous year 

2006 I 0.2 -0.1 -0.3 r6.2 r2.4 r6.0 

 II -0.7 -0.6 0.1 r3.5 r-0.4 r4.2 

 III -0.4 1.0 1.4 r3.1 r-0.2 r3.6 

 IV 1.8 0.9 -0.8 r5.1 r3.0 r3.2 

 ANNUAL 0.2 0.3 0.1 r4.5 r1.1 r4.3 

2007 I 2.1 0.5 -1.6 r2.2 r-0.2 r0.0 

 II 2.0 1.1 -0.9 r2.7 r0.1 r0.7 

 III 2.5 0.9 -1.5 r2.3 r-0.1 r-0.2 

 IV 1.7 0.9 -0.8 r2.7 r-1.2 r1.0 

 ANNUAL 2.1 0.9 -1.2 r2.5 r-0.3 r0.4 

2008 I r2.6 r0.1 -2.4 r3.8 r-0.3 r1.2 

 II 2.6 -0.5 -3.1 5.0 0.7 2.3 

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

See footnotes following Table 6. August 8, 2008 

r=revised Source: Bureau of Labor Statistics 

 
14 

Table 6. Nonfinancial corporate sector: Productivity, hourly compensation, unit labor costs, unit profits, 

and prices, seasonally adjusted 

 Output Hourly Real Unit Total Unit Implicit 

 Year per all- compen- hourly Unit non- unit pro- price 

 and employee Employee sation compen- labor labor costs fits deflator 

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

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

 Indexes 1992=100 

2006 I r146.3 r176.2 r120.4 r164.5 r118.1 r112.4 r112.9 r112.5 r182.5 r118.8 

 II r146.0 r176.5 r120.9 r164.5 r117.0 r112.6 r114.4 r113.1 r183.1 r119.4 

 III r147.0 r178.5 r121.5 r165.1 r116.3 r112.3 r114.2 r112.8 r193.0 r120.0 

 IV r146.0 r177.8 r121.8 r167.8 r118.7 r114.9 r116.2 r115.3 r173.9 r120.5 

 ANNUAL r146.3 r177.3 r121.1 r165.5 r117.5 r113.1 r114.4 r113.4 r183.1 r119.7 

2007 I r146.2 r177.8 r121.7 r170.3 r119.4 r116.5 r117.2 r116.7 r171.8 r121.6 

 II r147.4 r179.7 r121.9 r171.3 r118.7 r116.2 r117.4 r116.5 r172.5 r121.5 

 III r148.1 r180.9 r122.1 r172.5 r118.7 r116.5 r117.8 r116.8 r166.8 r121.3 

 IV r148.8 r181.7 r122.1 r175.0 r119.0 r117.6 r118.9 r117.9 r155.9 r121.3 

 ANNUAL r147.6 r180.0 r122.0 r172.3 r119.0 r116.7 r117.9 r117.0 r166.7 r121.4 

2008 I r149.2 r181.7 r121.8 r177.1 r119.2 r118.7 r118.7 r118.7 r149.8 r121.5 

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

 Percent change from previous quarter at annual rate(5) 

2006 I r4.4 r7.0 2.4 r8.3 r6.3 r3.7 r-0.6 r2.5 r12.1 r3.7 

 II r-0.9 r0.8 1.7 r0.0 r-3.5 r0.9 r5.3 r2.1 r1.4 r2.0 

 III r2.7 r4.7 1.9 r1.5 r-2.5 r-1.2 r-0.5 r-1.0 r23.3 r2.1 

 IV r-2.6 r-1.6 r1.0 r6.9 r8.5 r9.7 r6.9 r9.0 r-34.1 r1.7 

 ANNUAL r2.1 r4.4 2.2 r3.6 r0.3 r1.5 1.4 r1.4 r12.2 2.8 

2007 I r0.4 r0.0 -0.3 r6.1 r2.4 r5.7 r3.6 r5.1 r-4.7 r3.8 

 II r3.4 r4.3 0.8 r2.2 -2.3 r-1.2 r0.8 r-0.7 r1.7 r-0.4 

 III r1.8 r2.6 0.7 2.8 0.1 r1.0 r1.3 r1.0 r-12.5 r-0.8 

 IV r1.9 r1.9 0.0 5.9 r0.9 r3.9 r3.9 r3.9 r-23.7 r0.2 

 ANNUAL r0.9 r1.6 0.7 r4.1 r1.3 3.2 r3.0 r3.2 r-9.0 r1.5 

2008 I r1.0 r-0.1 r-1.1 r4.9 r0.6 r3.9 r-0.9 r2.6 r-14.7 0.5 

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

 Percent change from corresponding quarter of previous year 

2006 I r3.2 r5.9 2.6 r4.1 r0.4 r0.9 r1.4 r1.0 r17.1 r3.0 

 II r1.6 r3.9 2.3 r3.7 r-0.2 r2.0 r2.7 r2.2 r9.8 3.2 

 III r2.9 r5.2 r2.2 r2.6 r-0.7 r-0.3 r-1.3 r-0.6 r26.8 r2.6 

 IV r0.9 r2.7 1.8 r4.1 r2.1 r3.2 r2.7 r3.1 r-2.0 2.4 

 ANNUAL r2.1 r4.4 2.2 r3.6 r0.3 r1.5 1.4 r1.4 r12.2 2.8 

2007 I r-0.1 r1.0 1.1 r3.6 r1.1 r3.7 r3.8 r3.7 r-5.9 r2.4 

 II r1.0 r1.8 r0.8 r4.1 r1.4 r3.1 r2.7 r3.0 r-5.8 r1.8 

 III r0.7 r1.3 0.6 r4.5 r2.1 3.7 r3.1 r3.6 r-13.6 1.1 

 IV r1.9 r2.2 0.3 r4.3 r0.3 r2.3 r2.4 r2.3 r-10.3 r0.7 

 ANNUAL r0.9 r1.6 0.7 r4.1 r1.3 3.2 r3.0 r3.2 r-9.0 r1.5 

2008 I r2.1 r2.2 r0.1 r4.0 r-0.2 r1.9 r1.3 r1.7 r-12.8 r-0.1 

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

See footnotes following Table 6. August 8, 2008 

r=revised Source: Bureau of Labor Statistics 

 
15 

 

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 +1.3 index points 

approximately 95 percent of the time. This interval is based on the performance of this measure 

between the fourth quarter of 1995 and the first quarter of 2008. 

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 1978-2007 is based on the Consumer Price Index research series 

(CPI-U-RS). 

(3) Unit nonlabor payments include profits, consumption of fixed capital, taxes on production 

and imports less subsidies, net interest and miscellaneous payments, business current 

transfer payments, rental income of persons, and the current surplus of government 

enterprises. 

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

(5) Quarterly changes: Percent change compounded at annual rate is calculated using index 

numbers to three decimal places. Indexes published in the news release are rounded to 

one decimal place for convenience. Annual changes: Percent change is calculated using 

annual average indexes to three decimal places. 

(6) Unit nonlabor costs include consumption of fixed capital, taxes on production and imports 

less subsidies, net interest and miscellaneous payments, and business current transfer 

payments. 

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

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

consumption adjustments. 
16 

 

Appendix table 1. Business sector: Revised 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 

 2005 I r134.3 r157.1 r117.0 r161.2 r120.1 r120.0 r128.5 r123.2 

 II r134.2 r158.4 r118.0 r161.6 r119.5 r120.4 r129.5 r123.8 

 III r135.6 r160.2 r118.2 r164.1 r119.6 r121.1 r131.6 r125.0 

 IV r135.2 r160.6 r118.8 r165.8 r119.6 r122.6 r132.4 r126.3 

 ANNUAL r134.8 r159.1 r118.0 r163.2 r119.7 r121.0 r130.5 r124.6 

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

 Percent change from previous quarter at annual rate(5) 

 2005 I r2.7 3.7 0.9 r2.3 r0.5 r-0.4 r10.2 r3.6 

 II r-0.3 r3.2 3.5 r1.0 r-1.8 r1.3 r3.0 r2.0 

 III r4.1 r4.8 0.7 r6.5 r0.2 r2.3 r6.9 r4.1 

 IV -1.0 1.0 2.0 r4.2 r0.1 r5.2 r2.4 r4.1 

 ANNUAL r1.8 r3.5 1.6 4.0 0.6 r2.1 r4.7 3.1 

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

 Percent change from corresponding quarter of previous year 

 2005 I r2.4 3.8 1.3 r4.7 r1.7 r2.3 r4.4 3.1 

 II r1.4 3.5 2.0 3.8 r0.8 2.3 r3.3 r2.7 

 III r2.1 r3.7 1.5 4.0 r0.3 r1.8 r5.5 r3.3 

 IV r1.4 r3.1 r1.7 r3.5 r-0.3 r2.1 r5.6 r3.4 

 ANNUAL r1.8 r3.5 1.6 4.0 0.6 r2.1 r4.7 3.1 

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

Appendix table 2. Nonfarm business sector: Revised 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 

 2005 I r133.3 r157.3 r118.0 r160.0 r119.2 r120.0 r129.9 r123.7 

 II r133.4 r158.4 r118.8 r160.8 r118.9 r120.5 r130.8 r124.3 

 III r134.6 r160.3 r119.1 r163.2 r118.9 r121.2 r133.2 r125.6 

 IV r134.2 r160.8 r119.8 r164.7 r118.8 r122.7 r134.2 r126.9 

 ANNUAL r133.9 r159.2 r118.9 r162.2 r118.9 r121.1 r132.0 r125.1 

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

 Percent change from previous quarter at annual rate(5) 

 2005 I r3.2 r3.7 0.5 r2.8 r1.0 r-0.5 r11.2 r3.9 

 II r0.3 r2.9 2.7 r1.9 r-0.9 r1.6 r3.0 r2.2 

 III r3.7 r4.8 1.0 r6.2 r-0.1 r2.4 r7.4 r4.3 

 IV r-1.1 r1.3 2.5 r3.7 r-0.4 r4.9 r3.1 r4.2 

 ANNUAL r1.7 r3.4 1.7 4.0 0.6 r2.2 r5.2 3.4 

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

 Percent change from corresponding quarter of previous year 

 2005 I r2.3 3.8 1.4 r4.6 r1.6 r2.2 r5.0 3.3 

 II r1.3 r3.3 2.0 r3.8 r0.9 2.5 r3.9 r3.1 

 III r1.9 r3.5 1.6 4.0 0.2 r2.0 r5.9 3.5 

 IV r1.5 r3.2 1.7 r3.6 r-0.1 r2.1 r6.1 r3.6 

 ANNUAL r1.7 r3.4 1.7 4.0 0.6 r2.2 r5.2 3.4 

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

 See footnotes following Table 6. August 8, 2008 

 r=revised Source: Bureau of Labor Statistics 
17 

 

Appendix table 3. Manufacturing sector: Revised 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 

 2005 I 170.0 143.7 84.5 r162.2 r120.8 r95.4 

 II 172.0 144.5 84.0 r164.2 r121.4 r95.5 

 III 172.9 144.7 83.7 r166.5 r121.3 r96.3 

 IV 172.8 146.5 84.8 r165.3 r119.2 r95.6 

 ANNUAL 171.9 144.8 84.3 r164.5 r120.7 r95.7 

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

 Percent change from previous quarter at annual rate(5) 

 2005 I 7.1 5.7 -1.4 r-8.3 r-9.9 r-14.4 

 II 4.7 2.0 -2.5 r5.0 r2.1 r0.3 

 III 2.2 0.6 -1.5 5.8 r-0.5 r3.5 

 IV -0.2 5.3 5.5 r-2.9 r-6.7 r-2.8 

 ANNUAL 4.9 3.7 -1.2 r1.9 r-1.4 r-2.8 

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

 Percent change from corresponding quarter of previous year 

 2005 I 5.2 3.9 -1.3 r3.4 r0.4 r-1.7 

 II 5.6 4.0 -1.5 r2.7 r-0.2 r-2.7 

 III 5.3 3.4 -1.8 r1.8 r-1.9 r-3.4 

 IV 3.4 3.4 0.0 r-0.3 r-3.9 r-3.6 

 ANNUAL 4.9 3.7 -1.2 r1.9 r-1.4 r-2.8 

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

Appendix table 4. Durable manufacturing sector: Revised 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 

 2005 I 192.6 171.4 88.9 r158.3 r117.9 r82.1 

 II 195.0 172.6 88.5 r159.7 r118.1 r81.9 

 III 197.3 174.7 88.5 r162.2 r118.2 r82.2 

 IV 199.7 179.4 89.8 r160.7 r115.9 r80.5 

 ANNUAL 196.2 174.5 89.0 r160.2 r117.5 r81.7 

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

 Percent change from previous quarter at annual rate(5) 

 2005 I 7.1 7.1 -0.1 r-7.1 r-8.7 r-13.2 

 II 5.1 3.0 -2.0 r3.7 r0.8 r-1.4 

 III 4.8 4.9 0.1 r6.6 r0.3 r1.7 

 IV 4.9 11.2 6.0 r-3.7 r-7.4 r-8.2 

 ANNUAL 5.4 5.2 -0.2 r1.9 r-1.4 r-3.3 

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

 Percent change from corresponding quarter of previous year 

 2005 I 4.4 4.1 -0.3 r3.9 r0.9 r-0.5 

 II 5.4 4.9 -0.6 r2.6 r-0.3 r-2.7 

 III 6.1 5.2 -0.9 r1.6 r-2.1 r-4.3 

 IV 5.5 6.5 1.0 r-0.3 r-3.9 r-5.4 

 ANNUAL 5.4 5.2 -0.2 r1.9 r-1.4 r-3.3 

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

 See footnotes following Table 6. August 8, 2008 

 r=revised Source: Bureau of Labor Statistics 
18 

 

Appendix table 5. Nondurable manufacturing sector: Revised 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 

 2005 I 147.8 115.1 77.9 r167.6 r124.9 r113.4 

 II 149.5 115.4 77.2 r170.7 r126.3 r114.2 

 III 149.6 114.3 76.4 r172.3 r125.5 r115.2 

 IV 147.7 114.0 77.2 r171.7 r123.9 r116.3 

 ANNUAL 148.7 114.7 77.2 r170.6 r125.1 r114.8 

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 Percent change from previous quarter at annual rate(5) 

 2005 I 7.8 4.0 -3.6 r-10.8 r-12.4 r-17.3 

 II 4.6 0.9 -3.5 r7.5 r4.5 r2.8 

 III 0.4 -3.9 -4.3 r3.9 r-2.2 r3.4 

 IV -5.1 -0.8 4.5 r-1.5 r-5.3 r3.9 

 ANNUAL 4.9 2.0 -2.8 r1.6 r-1.6 r-3.1 

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

 Percent change from corresponding quarter of previous year 

 2005 I 6.8 3.8 -2.9 r2.4 r-0.5 r-4.1 

 II 6.3 3.0 -3.1 r2.8 r-0.1 r-3.3 

 III 5.0 1.4 -3.4 r1.9 r-1.8 r-2.9 

 IV 1.8 0.0 -1.8 r-0.5 r-4.0 r-2.2 

 ANNUAL 4.9 2.0 -2.8 r1.6 r-1.6 r-3.1 

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Appendix table 6. Nonfinancial corporate sector: Revised 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 

 2005 I r141.8 r166.4 r117.3 r158.0 r117.7 r111.4 r111.3 r111.4 r155.9 r115.3 

 II r143.7 r169.9 r118.2 r158.6 r117.3 r110.4 r111.4 r110.6 r166.8 r115.7 

 III r142.8 r169.7 r118.8 r160.8 r117.2 r112.6 r115.7 r113.5 r152.2 r116.9 

 IV r144.8 r173.2 r119.7 r161.2 r116.3 r111.4 r113.1 r111.8 r177.4 r117.7 

 ANNUAL r143.3 r169.8 r118.5 r159.7 r117.1 r111.4 r112.9 r111.8 r163.2 116.4 

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

 Percent change from previous quarter at annual rate(5) 

 2005 I r3.0 r3.2 0.2 r2.5 r0.7 r-0.4 r7.6 r1.7 r23.6 4.0 

 II r5.5 r8.7 3.0 r1.7 r-1.1 r-3.6 r0.1 r-2.6 r31.1 r1.1 

 III r-2.5 r-0.5 r2.0 r5.6 r-0.6 r8.4 r16.7 r10.6 r-30.6 r4.4 

 IV r5.6 r8.7 3.0 r1.0 r-2.9 r-4.3 r-8.9 r-5.6 r84.3 r2.7 

 ANNUAL r2.6 r4.3 1.7 r3.7 0.4 r1.1 r3.3 r1.7 r12.7 2.9 

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

 Percent change from corresponding quarter of previous year 

 2005 I r3.2 r4.4 1.1 4.7 r1.6 r1.4 r1.6 r1.5 r15.3 3.0 

 II r3.4 r5.1 1.7 r3.8 r0.9 r0.4 r1.9 r0.8 r14.5 r2.4 

 III r1.2 r3.0 1.7 3.8 0.0 r2.5 r6.2 r3.5 r1.3 3.2 

 IV r2.8 r4.9 2.1 r2.7 r-1.0 r-0.1 r3.4 r0.8 r20.0 r3.1 

 ANNUAL r2.6 r4.3 1.7 r3.7 0.4 r1.1 r3.3 r1.7 r12.7 2.9 

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 See footnotes following Table 6. August 8, 2008 

 r=revised Source: Bureau of Labor Statistics