Transmission of material in this release is embargoed until USDL 16-0209 

8:30 a.m. (EST) Thursday, February 4, 2016 

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

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

PRODUCTIVITY AND COSTS

Fourth Quarter and Annual Averages 2015, Preliminary

Nonfarm business sector labor productivity decreased at a 3.0-percent annual rate during the fourth

quarter of 2015, the U.S. Bureau of Labor Statistics reported today, as output increased 0.1 percent and 

hours worked increased 3.3 percent. (All quarterly percent changes in this release are seasonally 

adjusted annual rates.) From the fourth quarter of 2014 to the fourth quarter of 2015, productivity 

increased 0.3 percent. (See chart 1 and table A.) Annual average productivity increased 0.6 percent from 

2014 to 2015. (See table C.) 

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

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

Unit labor costs in the nonfarm business sector increased 4.5 percent in the fourth quarter of 2015, 

reflecting a 1.3-percent increase in hourly compensation and a 3.0-percent decrease in productivity. Unit 

labor costs increased 2.8 percent over the last four quarters. (See chart 2 and tables A and 2.) 

BLS calculates unit labor costs as the ratio of hourly compensation to labor productivity. Increases in 

hourly compensation tend to increase unit labor costs, and increases in output per hour tend to reduce 

them.

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

2011Q1 – 2015Q4

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2011 2012 2013 2014 2015

From previous quarter, annual rate

From same quarter a year ago

Percent change Percent change

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

2011Q1 – 2015Q4

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2011 2012 2013 2014 2015

From previous quarter, annual rate

From same quarter a year ago
-2- 

Manufacturing sector labor productivity decreased 0.4 percent in the fourth quarter of 2015, as output 

increased 0.5 percent and hours worked increased 0.9 percent. Productivity decreased 1.0 percent in the 

durable goods manufacturing sector and increased 0.3 percent in the nondurable goods sector. (See 

tables A, 3, 4, and 5.) Over the last four quarters, manufacturing productivity increased 1.5 percent, as 

output increased 1.1 percent and hours decreased 0.4 percent. Unit labor costs in manufacturing 

increased 3.6 percent in the fourth quarter of 2015 and increased 1.9 percent from the same quarter a 

year ago. (See tables A and 3.) 

The concepts, sources, and methods used for the manufacturing output series differ from those used in 

the business and nonfarm business output series; these output measures are not directly comparable. See 

the Technical Notes for a more detailed explanation. (See page 5.) 

Table C presents annual average changes for the most recent five years for the nonfarm business sector 

and the total manufacturing sector. Nonfarm business sector productivity grew 0.6 percent in 2015, as 

output and hours increased 2.8 percent and 2.2 percent, respectively. The increase in hours was due 

solely to an increase in employment of 2.3 percent, which was the largest employment gain since a 2.3-

percent increase in 1998. Productivity increased at an annual rate of less than 1.0 percent in each of the 

last five years, reflecting steady growth in both output and hours during these years. The average annual 

rate of productivity growth from 2007 to 2015—corresponding to the current business cycle—is 1.2 

percent, well below the long-term rate from 1947 to 2015 of 2.1 percent. 

Unit labor costs in the nonfarm business sector rose 2.4 percent in 2015, reflecting increases of 3.0 

percent in hourly compensation and 0.6 percent in productivity. The increases in unit labor costs and 

hourly compensation are the largest since 2007, when these series rose 2.7 percent and 4.3 percent, 

respectively. Real hourly compensation, which takes into account changes in consumer prices, increased 

2.8 percent in 2015. This is the largest annual increase in real hourly compensation since a 3.9-percent 

increase in 2000. 

In the manufacturing sector, productivity increased 1.3 percent in 2015, which is the same rate of 

increase as in 2014. The average annual rate of productivity growth from 2007 to 2015 is 2.1 percent, 

which is below the long-term rate from 1987 to 2015 of 3.4 percent. Unit labor costs increased 1.3 

percent in 2015, which is similar to a 1.4-percent increase in 2014. Real hourly compensation in 

manufacturing increased 2.4 percent in 2015. 

Revised measures 

Revised and previous measures for the third quarter of 2015 are shown in tables B and D and cover the 

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

In the third quarter of 2015, nonfarm business productivity was revised down 0.1 percentage point, to 

an increase of 2.1 percent. (See table B.) Unit labor costs in the nonfarm business sector increased 1.9

percent in the third quarter—rather than 1.8 percent as previously reported. 

In the manufacturing sector, productivity was revised down 0.1 percentage point, to an increase of 5.0 

percent. Manufacturing unit labor costs increased 2.3 percent, the same rate as previously reported. 

In the nonfinancial corporate sector, productivity was revised down 1.2 percentage points in the third 

quarter of 2015, to an increase of 1.7 percent. This downward revision to productivity is due solely to a 

1.2 percentage point downward revision to output. (See table D.) 
-3- 

Quarterly and annual data for all sectors from 2013 to 2015 appear in tables 1-6. Full historical 

measures can be found on the Productivity and Costs home page: www.bls.gov/lpc/#data. 

______________ 

The revised Productivity and Costs news release for fourth-quarter 2015 is scheduled to be 

released on Thursday, March 3, 2016 at 8:30 a.m. (EST).
-4- 

Table A. Preliminary fourth-quarter 2015 measures: percent change from previous quarter, at annual rate (Q to Q) and from same quarter a 

year ago (Y to Y)

Sector

 Nonfarm

 Business Business Manufacturing

 Durable

 Manufacturing

 Nondurable

 Manufacturing

Q to Q Y to Y Q to Q Y to Y Q to Q Y to Y Q to Q Y to Y Q to Q Y to Y

Labor Productivity -3.0 0.3 -2.7 0.5 -0.4 1.5 -1.0 1.5 0.3 1.2

Output 0.1 1.9 0.6 2.1 0.5 1.1 -0.2 0.6 1.5 1.7

Hours worked 3.3 1.5 3.4 1.5 0.9 -0.4 0.8 -0.9 1.1 0.5

Hourly compensation 1.3 3.1 1.1 3.1 3.2 3.4 3.6 3.1 2.6 4.1

Real hourly compensation 1.1 2.7 0.9 2.7 3.0 3.0 3.3 2.7 2.4 3.6

Unit labor costs 4.5 2.8 3.9 2.5 3.6 1.9 4.6 1.6 2.3 2.8

Table B. Revised and previous measures: third quarter 2015 

Sector

 Nonfarm

 Business Business Manufacturing

 Durable

 Manufacturing

 Nondurable

 Manufacturing

Revised Previous Revised Previous Revised Previous Revised Previous Revised Previous

Percent change, annual rate, third quarter 2015

Labor Productivity 2.1 2.2 2.6 2.7 5.0 5.1 6.8 6.9 2.2 2.3

Output 1.8 1.8 2.2 2.3 3.2 3.2 3.9 3.7 2.4 2.7

Hours worked -0.3 -0.3 -0.4 -0.4 -1.7 -1.8 -2.7 -3.0 0.2 0.3

Hourly compensation 4.1 4.0 4.1 4.1 7.4 7.5 7.3 7.5 7.8 7.7

Real hourly compensation 2.5 2.4 2.5 2.4 5.7 5.8 5.6 5.9 6.1 6.0

Unit labor costs 1.9 1.8 1.6 1.3 2.3 2.3 0.4 0.6 5.5 5.3

Table C. Annual average changes in productivity and related measures: 2011-2015

Sector Nonfarm Business Manufacturing

2015 2014 2013 2012 2011 2015 2014 2013 2012 2011

Labor Productivity 0.6 0.7 0.0 0.9 0.2 1.3 1.3 0.7 0.7 5.6

Output 2.8 3.0 1.7 3.1 2.2 2.2 2.9 1.5 3.0 7.8

Hours worked 2.2 2.3 1.7 2.2 2.0 0.9 1.6 0.8 2.3 2.1

Hourly compensation 3.0 2.7 1.1 2.7 2.2 2.6 2.7 0.2 1.8 1.7

Real hourly compensation 2.8 1.1 -0.4 0.6 -0.9 2.4 1.0 -1.2 -0.3 -1.4

Unit labor costs 2.4 2.0 1.1 1.7 2.1 1.3 1.4 -0.5 1.0 -3.6

Table D. Nonfinancial corporations: revised and previous third-quarter 2015 productivity and cost measures 

Labor

Productivity Output

Hours

worked

Hourly 

compensation

Real hourly 

compensation

Unit labor 

costs Unit profits

Implicit price 

deflator

Percent change, annual rate, third quarter 2015

Q to Q Revised 1.7 3.1 1.4 4.2 2.5 2.4 -6.6 0.5

Q to Q Previous 2.9 4.3 1.4 4.1 2.5 1.2 0.7 0.5
-5- 

TECHNICAL NOTES

Labor Hours 

Hours data for the labor productivity and cost measures include hours worked for all persons working in 

the sector—wage and salary workers, the self-employed and unpaid family workers. The primary source 

of hours and employment data is the BLS Current Employment Statistics (CES) program, which 

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

establishments, counting a person who is employed by two or more establishments at each place of 

employment. The CES also provides average weekly paid hours of production and nonsupervisory 

workers in these establishments. Weekly paid hours are adjusted to hours at work using data from the 

National Compensation Survey (NCS) for 2001 forward and data from the BLS Hours at Work survey, 

conducted for this purpose, for earlier years. The Office of Productivity and Technology estimates 

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

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

Data from the CPS are used to estimate hours worked for farm labor, nonfarm proprietors, and nonfarm 

unpaid family workers. Using CPS information on employment and hours worked at primary jobs and 

all other jobs, separately, the BLS productivity measures assign all hours worked to the correct 

industrial sector. Hours for government enterprises are derived from the CPS, the CES, and the National 

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

Department of Commerce.

Output

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

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

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

inputs. Business output accounted for about 76 percent of the value of GDP in 2015. Nonfarm business, 

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

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

deflating current-dollar industry value of production data from the U.S. Bureau of the Census with 

deflators from the BLS. These deflators are based on data from the BLS producer price program and 

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

are removed. Quarterly manufacturing output measures are based on the indexes of industrial production 

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

with annual indexes of manufacturing sector output prepared by BLS. 

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

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

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

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

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

for about 49 percent of the value of GDP in 2014. 

Labor Productivity

The measure describes the relationship between real output and the labor time involved in its 

production. Measures of labor productivity growth show the changes from period to period in the 

amount of goods and services produced per hour worked. They reflect the joint effects of many 

influences, including changes in technology; capital investment; level of output; utilization of capacity, 

energy, and materials; the organization of production; managerial skill; and the characteristics and effort 

of the work force.
-6- 

Labor Compensation

The measure includes accrued wages and salaries, supplements, employer contributions to employee 

benefit plans, and taxes. Estimates of labor compensation by major sector, required for measures of 

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

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

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

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

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

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

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

Unit Labor Costs 

These measures describe the relationship between compensation per hour and labor productivity, or real 

output per hour, and can be used as an indicator of inflationary pressure on producers. Increases in 

hourly compensation increase unit labor costs; labor productivity increases offset compensation 

increases and lower unit labor costs. 

Presentation of the data

The quarterly data in this release are presented in three ways: as percent changes from the previous 

quarter presented at a compound annual rate, as percent changes from the corresponding quarter of the 

previous year, and as index number series where 2009=100. Annual data are presented both as index 

number series and percent changes from the previous year. 

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

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

index numbers to three decimal places. A complete historical series of these index numbers are available

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

Productivity (Telephone 202-691-5606 or email dprweb@bls.gov). 

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

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

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

phone: 202-691-5606; Federal Relay Service number: 1-800-877-8339.
-7- 

Table 1. Business sector: Productivity, hourly compensation, unit labor costs, and prices,

seasonally adjusted

 Real

 Output Compen- compen- Unit Implicit

Year per hour Hours sation sation Unit nonlabor price

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

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

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

 Percent change from previous quarter at annual rate(5)

2015 ANNUAL 0.5 2.9 2.3 2.8 2.7 2.3 -1.4 0.7 

2015 IV -2.7 0.6 3.4 1.1 0.9 3.9 -4.5 0.3 

 III 2.6 r 2.2 r -0.4 4.1 2.5 r 1.6 r 0.1 r 0.9 

 II 3.7 5.0 1.2 5.9 2.8 2.1 2.4 2.2 

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

2014 ANNUAL 0.6 3.0 2.4 2.6 1.0 2.0 0.6 1.4 

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

 III 2.5 5.5 2.9 2.5 1.3 0.0 2.9 1.2 

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

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

2013 ANNUAL 0.4 2.0 1.6 1.2 -0.2 0.8 2.4 1.5 

2013 IV 3.4 5.1 1.7 2.1 0.7 -1.2 4.4 1.2 

 III 1.3 3.9 2.5 0.5 -1.8 -0.9 5.3 1.7 

 II 0.6 1.6 1.0 6.3 6.5 5.7 -5.6 0.6 

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

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

 Percent change from corresponding quarter of previous year

2015 ANNUAL 0.5 2.9 2.3 2.8 2.7 2.3 -1.4 0.7 

2015 IV 0.5 2.1 1.5 3.1 2.7 2.5 -1.4 0.8 

 III 0.6 2.6 2.0 3.6 3.4 2.9 -2.4 0.6 

 II 0.6 3.4 2.8 3.2 3.1 2.5 -1.8 0.7 

 I 0.4 3.6 3.2 1.5 1.5 1.1 0.2 0.7 

2014 ANNUAL 0.6 3.0 2.4 2.6 1.0 2.0 0.6 1.4 

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

 III 1.3 3.6 2.3 2.4 0.6 1.1 2.1 1.5 

 II 1.0 3.2 2.2 1.9 -0.2 0.9 2.7 1.7 

 I 0.4 2.2 1.8 3.7 2.2 3.3 -1.3 1.3 

2013 ANNUAL 0.4 2.0 1.6 1.2 -0.2 0.8 2.4 1.5 

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

 III 0.3 2.0 1.7 2.0 0.5 1.7 0.9 1.3 

 II -0.3 1.2 1.5 2.0 0.6 2.3 0.4 1.5 

 I 0.1 1.4 1.3 1.1 -0.6 1.0 3.1 1.9 

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

 Indexes 2009=100

2015 ANNUAL 105.8 117.2 110.8 114.3 103.4 108.0 110.6 109.1 

2015 IV 105.8 118.0 111.5 115.5 104.1 109.2 109.8 109.4 

 III 106.5 r 117.8 r 110.6 r 115.2 r 103.9 r 108.1 r 111.1 r 109.4 r

 II 105.8 117.2 110.7 114.0 103.2 107.7 111.1 109.1 

 I 104.9 115.8 110.4 112.4 102.5 107.1 110.4 108.5 

2014 ANNUAL 105.2 113.9 108.3 111.1 100.7 105.6 112.2 108.4 

2014 IV 105.2 115.6 109.9 112.0 101.4 106.5 111.4 108.5 

 III 105.9 114.8 108.5 111.2 100.4 105.0 113.9 108.7 

 II 105.2 113.3 107.7 110.5 100.1 105.0 113.1 108.4 

 I 104.5 111.8 107.0 110.7 100.9 106.0 110.2 107.8 

2013 ANNUAL 104.6 110.6 105.7 108.3 99.7 103.6 111.5 106.9 

2013 IV 105.4 112.2 106.5 109.2 100.0 103.6 112.7 107.4 

 III 104.6 110.9 106.0 108.6 99.9 103.9 111.5 107.1 

 II 104.2 109.8 105.4 108.5 100.3 104.1 110.1 106.6 

 I 104.1 109.4 105.1 106.8 98.7 102.7 111.7 106.4 

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

See footnotes following Table 6. February 4, 2016

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

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

seasonally adjusted

 Real

 Output Compen- compen- Unit Implicit

Year per hour Hours sation sation Unit nonlabor price

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

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

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

 Percent change from previous quarter at annual rate(5)

2015 ANNUAL 0.6 2.8 2.2 3.0 2.8 2.4 -0.9 1.0 

2015 IV -3.0 0.1 3.3 1.3 1.1 4.5 -4.4 0.7 

 III 2.1 r 1.8 -0.3 4.1 r 2.5 r 1.9 r -0.3 r 1.0 

 II 3.5 5.1 1.5 5.6 2.5 2.0 2.7 2.3 

 I -1.1 0.5 1.6 1.5 4.6 2.6 -2.2 0.5 

2014 ANNUAL 0.7 3.0 2.3 2.7 1.1 2.0 0.9 1.5 

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

 III 3.1 5.5 2.3 3.2 2.0 0.1 4.1 1.8 

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

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

2013 ANNUAL 0.0 1.7 1.7 1.1 -0.4 1.1 2.1 1.5 

2013 IV 3.5 5.2 1.7 2.3 0.9 -1.2 5.7 1.7 

 III 1.4 3.5 2.1 0.9 -1.4 -0.5 5.8 2.2 

 II 0.1 1.1 1.1 6.3 6.5 6.2 -5.0 1.2 

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

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

 Percent change from corresponding quarter of previous year

2015 ANNUAL 0.6 2.8 2.2 3.0 2.8 2.4 -0.9 1.0 

2015 IV 0.3 1.9 1.5 3.1 2.7 2.8 -1.1 1.1 

 III 0.6 2.5 1.9 3.6 3.4 3.0 -2.1 r 0.8 

 II 0.8 3.4 2.6 3.4 3.3 2.6 -1.0 1.0 

 I 0.6 3.5 2.8 1.8 1.9 1.2 0.6 0.9 

2014 ANNUAL 0.7 3.0 2.3 2.7 1.1 2.0 0.9 1.5 

2014 IV 0.0 3.0 3.0 2.8 1.6 2.8 -1.0 1.1 

 III 1.4 3.7 2.2 2.5 0.7 1.1 2.5 1.7 

 II 1.0 3.2 2.2 1.9 -0.1 0.9 2.9 1.8 

 I 0.3 2.1 1.8 3.7 2.3 3.4 -0.7 1.6 

2013 ANNUAL 0.0 1.7 1.7 1.1 -0.4 1.1 2.1 1.5 

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

 III -0.2 1.6 1.9 1.9 0.3 2.1 0.5 1.4 

 II -0.8 1.0 1.8 1.7 0.3 2.5 -0.1 1.4 

 I -0.2 1.4 1.6 0.8 -0.9 1.0 2.5 1.6 

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

 Indexes 2009=100

2015 ANNUAL 105.8 117.1 110.7 114.4 103.6 108.2 110.1 109.0 

2015 IV 105.7 117.8 111.5 115.7 104.3 109.5 109.3 109.4 

 III 106.5 r 117.7 r 110.6 r 115.3 r 104.0 r 108.3 r 110.6 r 109.2 

 II 105.9 117.2 110.7 114.1 103.3 107.8 110.7 109.0 

 I 105.0 115.8 110.2 112.6 102.7 107.2 109.9 108.3 

2014 ANNUAL 105.2 114.0 108.4 111.1 100.7 105.7 111.1 107.9 

2014 IV 105.3 115.6 109.8 112.2 101.6 106.5 110.5 108.2 

 III 105.9 114.9 108.5 111.3 100.5 105.1 112.9 108.3 

 II 105.1 113.4 107.9 110.4 100.0 105.0 111.8 107.8 

 I 104.4 111.9 107.2 110.6 100.8 106.0 109.3 107.4 

2013 ANNUAL 104.4 110.6 105.9 108.2 99.6 103.6 110.1 106.3 

2013 IV 105.3 112.2 106.6 109.1 100.0 103.7 111.7 107.0 

 III 104.4 110.8 106.2 108.5 99.8 104.0 110.2 106.5 

 II 104.0 109.9 105.6 108.3 100.1 104.1 108.6 106.0 

 I 104.0 109.6 105.3 106.6 98.6 102.5 110.0 105.7 

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

See footnotes following Table 6. February 4, 2016

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

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

seasonally adjusted

 Real

 Output Compen- compenYear per hour Hours sation sation Unit

and of all of all per hour per hour labor

quarter persons Output persons (1) (2) costs

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

 Percent change from previous quarter at annual rate(5)

2015 ANNUAL 1.3 2.2 0.9 2.6 2.4 1.3 

2015 IV -0.4 0.5 0.9 3.2 3.0 3.6 

 III 5.0 r 3.2 -1.7 r 7.4 r 5.7 r 2.3 

 II 2.2 1.3 -0.8 5.5 2.4 3.2 r

 I -0.6 -0.5 0.1 -2.2 0.8 -1.6 

2014 ANNUAL 1.3 2.9 1.6 2.7 1.0 1.4 

2014 IV -0.4 4.0 4.4 4.3 5.1 4.7 

 III 2.9 4.4 1.4 2.7 1.5 -0.2 

 II 2.8 6.3 3.4 -1.8 -4.2 -4.4 

 I 2.0 1.0 -1.0 8.7 6.5 6.5 

2013 ANNUAL 0.7 1.5 0.8 0.2 -1.2 -0.5 

2013 IV -0.5 3.4 3.9 -0.3 -1.6 0.2 

 III -0.9 0.6 1.5 1.0 -1.3 1.9 

 II 2.5 0.1 -2.3 4.1 4.3 1.6 

 I 1.1 3.5 2.3 -5.4 -6.7 -6.4 

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

 Percent change from corresponding quarter of previous year

2015 ANNUAL 1.3 2.2 0.9 2.6 2.4 1.3 

2015 IV 1.5 1.1 -0.4 3.4 3.0 1.9 

 III 1.5 2.0 0.5 r 3.7 3.5 2.1 

 II 1.0 2.3 1.2 2.5 2.5 1.5 

 I 1.2 3.5 2.3 0.7 0.8 -0.4 

2014 ANNUAL 1.3 2.9 1.6 2.7 1.0 1.4 

2014 IV 1.8 3.9 2.0 3.4 2.2 1.5 

 III 1.8 3.7 1.9 2.2 0.5 0.4 

 II 0.8 2.8 2.0 1.8 -0.2 1.0 

 I 0.8 1.3 0.5 3.3 1.9 2.5 

2013 ANNUAL 0.7 1.5 0.8 0.2 -1.2 -0.5 

2013 IV 0.5 1.9 1.3 -0.2 -1.4 -0.7 

 III 1.1 1.5 0.4 0.9 -0.6 -0.2 

 II 1.0 1.2 0.2 0.4 -0.9 -0.6 

 I 0.1 1.2 1.2 -0.3 -2.0 -0.4 

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

 Indexes 2009=100

2015 ANNUAL 121.6 131.1 107.8 110.7 100.1 91.0 

2015 IV 122.4 131.9 107.8 112.7 101.6 92.1 

 III 122.5 r 131.7 r 107.5 r 111.8 r 100.8 r 91.2 r

 II 121.0 r 130.7 r 108.0 109.8 99.4 90.7 r

 I 120.4 130.2 108.2 108.4 98.8 90.0 

2014 ANNUAL 120.0 128.3 106.9 107.9 97.8 89.9 

2014 IV 120.6 130.4 108.2 109.0 98.6 90.4 

 III 120.7 129.1 107.0 107.8 97.4 89.3 

 II 119.8 127.8 106.6 107.1 97.0 89.4 

 I 119.0 125.8 105.7 107.6 98.1 90.4 

2013 ANNUAL 118.5 124.6 105.2 105.0 96.8 88.7 

2013 IV 118.4 125.5 106.0 105.4 96.5 89.0 

 III 118.6 124.5 105.0 105.4 96.9 88.9 

 II 118.8 124.3 104.6 105.2 97.3 88.5 

 I 118.1 124.2 105.2 104.1 96.2 88.2 

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

See footnotes following Table 6. February 4, 2016

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

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

seasonally adjusted

 Real

 Output Compen- compenYear per hour Hours sation sation Unit

and of all of all per hour per hour labor

quarter persons Output persons (1) (2) costs

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

 Percent change from previous quarter at annual rate(5)

2015 ANNUAL 1.4 2.1 0.7 2.3 2.1 0.9 

2015 IV -1.0 -0.2 0.8 3.6 3.3 4.6 

 III 6.8 r 3.9 r -2.7 r 7.3 r 5.6 r 0.4 r

 II 2.8 1.4 -1.4 5.3 2.3 2.4 r

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

2014 ANNUAL 1.9 4.2 2.3 2.1 0.5 0.2 

2014 IV 0.5 3.9 3.3 5.0 5.9 4.5 

 III 3.2 6.4 3.1 2.3 1.1 -0.9 

 II 3.0 8.7 5.5 -2.6 -5.0 -5.5 

 I 2.6 1.5 -1.1 8.6 6.4 5.8 

2013 ANNUAL 0.7 1.8 1.1 -0.4 -1.8 -1.1 

2013 IV 0.7 5.5 4.8 -2.5 -3.8 -3.1 

 III -0.3 1.4 1.7 1.7 -0.6 2.0 

 II 2.4 -0.3 -2.6 3.5 3.7 1.0 

 I -0.5 3.4 3.9 -6.7 -8.0 -6.2 

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

 Percent change from corresponding quarter of previous year

2015 ANNUAL 1.4 2.1 0.7 2.3 2.1 0.9 

2015 IV 1.5 0.6 -0.9 3.1 2.7 1.6 

 III 1.9 1.7 r -0.2 r 3.5 3.3 r 1.5 r

 II 1.0 2.3 1.2 2.2 2.2 1.2 

 I 1.1 4.0 2.9 0.3 0.3 -0.8 

2014 ANNUAL 1.9 4.2 2.3 2.1 0.5 0.2 

2014 IV 2.3 5.1 2.7 3.2 2.0 0.9 

 III 2.4 5.5 3.0 1.3 -0.4 -1.0 

 II 1.5 4.2 2.7 1.2 -0.9 -0.3 

 I 1.3 2.0 0.7 2.7 1.3 1.4 

2013 ANNUAL 0.7 1.8 1.1 -0.4 -1.8 -1.1 

2013 IV 0.6 2.5 1.9 -1.1 -2.3 -1.6 

 III 1.0 1.7 0.7 0.9 -0.6 -0.1 

 II 0.8 1.1 0.3 -0.1 -1.5 -0.9 

 I 0.6 2.1 1.5 -1.1 -2.8 -1.8 

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

 Indexes 2009=100

2015 ANNUAL 125.6 139.5 111.1 108.9 98.6 86.7 

2015 IV 126.6 140.2 110.7 111.0 100.0 87.7 

 III 126.9 r 140.3 r 110.5 r 110.0 r 99.2 r 86.7 r

 II 124.8 r 138.9 r 111.3 108.1 97.9 86.6 r

 I 124.0 138.4 111.7 106.7 97.3 86.1 

2014 ANNUAL 123.9 136.5 110.2 106.5 96.5 86.0 

2014 IV 124.7 139.3 111.7 107.6 97.4 86.3 

 III 124.5 138.0 110.8 106.3 96.0 85.4 

 II 123.6 135.9 110.0 105.7 95.8 85.6 

 I 122.6 133.1 108.5 106.4 97.0 86.8 

2013 ANNUAL 121.6 131.0 107.8 104.3 96.1 85.8 

2013 IV 121.9 132.6 108.8 104.2 95.5 85.5 

 III 121.7 130.8 107.5 104.9 96.4 86.2 

 II 121.8 130.4 107.1 104.5 96.6 85.8 

 I 121.0 130.4 107.8 103.6 95.7 85.6 

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

See footnotes following Table 6. February 4, 2016

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

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

seasonally adjusted

 Real

 Output Compen- compenYear per hour Hours sation sation Unit

and of all of all per hour per hour labor

quarter persons Output persons (1) (2) costs

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

 Percent change from previous quarter at annual rate(5)

2015 ANNUAL 1.1 2.3 1.2 3.2 3.1 2.1 

2015 IV 0.3 1.5 1.1 2.6 2.4 2.3 

 III 2.2 r 2.4 r 0.2 r 7.8 r 6.1 r 5.5 r

 II 1.1 1.2 0.1 5.9 2.8 4.7 

 I 1.3 1.7 0.4 0.2 3.2 -1.1 

2014 ANNUAL 1.0 1.5 0.5 3.7 2.0 2.6 

2014 IV -2.1 4.1 6.3 3.1 3.9 5.3 

 III 3.6 2.1 -1.4 3.2 2.1 -0.4 

 II 3.7 3.7 0.0 -0.6 -3.0 -4.2 

 I 1.4 0.4 -0.9 8.8 6.6 7.3 

2013 ANNUAL 0.9 1.1 0.2 1.2 -0.2 0.3 

2013 IV -1.4 1.0 2.4 4.0 2.5 5.4 

 III -1.6 -0.4 1.2 -0.3 -2.6 1.3 

 II 2.1 0.3 -1.8 5.3 5.5 3.1 

 I 3.6 3.3 -0.3 -3.2 -4.6 -6.6 

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

 Percent change from corresponding quarter of previous year

2015 ANNUAL 1.1 2.3 1.2 3.2 3.1 2.1 

2015 IV 1.2 1.7 0.5 4.1 3.6 2.8 

 III 0.6 2.3 r 1.7 r 4.2 4.0 3.6 r

 II 1.0 2.3 1.3 3.1 3.0 2.1 

 I 1.6 2.9 1.3 1.5 1.5 -0.2 

2014 ANNUAL 1.0 1.5 0.5 3.7 2.0 2.6 

2014 IV 1.6 2.6 0.9 3.6 2.4 1.9 

 III 1.8 1.8 0.0 3.8 2.0 1.9 

 II 0.5 1.2 0.7 2.9 0.8 2.4 

 I 0.1 0.4 0.2 4.4 2.9 4.3 

2013 ANNUAL 0.9 1.1 0.2 1.2 -0.2 0.3 

2013 IV 0.7 1.1 0.4 1.4 0.1 0.7 

 III 1.3 1.2 -0.1 0.9 -0.6 -0.4 

 II 1.5 1.5 0.0 1.5 0.1 0.0 

 I 0.2 0.8 0.6 1.2 -0.5 1.1 

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

 Indexes 2009=100

2015 ANNUAL 113.5 116.6 102.7 113.3 102.5 99.8 

2015 IV 114.0 117.4 103.0 115.3 103.9 101.2 

 III 113.9 r 116.9 r 102.7 r 114.6 r 103.3 r 100.6 r

 II 113.3 r 116.2 r 102.6 112.4 101.8 99.2 r

 I 113.0 115.9 102.6 110.8 101.1 98.1 

2014 ANNUAL 112.3 114.0 101.5 109.8 99.5 97.7 

2014 IV 112.6 115.4 102.5 110.8 100.3 98.4 

 III 113.2 114.3 100.9 109.9 99.3 97.1 

 II 112.2 113.6 101.3 109.1 98.8 97.2 

 I 111.2 112.6 101.3 109.2 99.6 98.3 

2013 ANNUAL 111.2 112.3 101.0 105.9 97.5 95.3 

2013 IV 110.8 112.5 101.5 107.0 98.0 96.5 

 III 111.2 112.2 100.9 105.9 97.4 95.3 

 II 111.6 112.3 100.6 106.0 98.0 95.0 

 I 111.0 112.2 101.1 104.7 96.7 94.2 

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

See footnotes following Table 6. February 4, 2016

r=revised Source: Bureau of Labor Statistics
-12- 

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

and prices, seasonally adjusted

 Real Unit

 Output Hourly hourly non- Total Unit Implicit

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

and employee Employee sation sation labor costs cost fits deflator

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

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

 Percent change from previous quarter at annual rate(5)

2015 III 1.7 r 3.1 r 1.4 4.2 r 2.5 2.4 r 0.2 r 1.7 r -6.6 r 0.5 

 II 1.6 2.0 0.4 5.7 2.6 4.1 -2.9 1.8 5.8 2.4 

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

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

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

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

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

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

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

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

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

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

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

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

 Percent change from corresponding quarter of previous year

2015 III 1.1 r 3.0 r 1.9 2.9 2.8 r 1.8 r -1.5 r 0.7 r -7.1 r -0.5 r

 II 1.3 3.5 2.2 2.3 2.2 1.0 -1.8 0.1 -1.7 -0.2 

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

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

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

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

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

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

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

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

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

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

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

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

 Indexes 2009=100

2015 III 109.7 r 123.9 r 112.9 r 113.9 r 102.7 r 103.8 r 95.2 r 100.9 r 142.8 r 105.3 r

 II 109.3 123.0 112.6 112.7 102.0 103.2 95.2 100.5 145.3 105.2 

 I 108.8 122.4 112.4 111.2 101.4 102.1 95.9 100.0 143.2 104.6 

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

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

 III 108.5 120.3 110.9 110.6 99.9 101.9 96.7 100.2 153.7 105.8 

 II 107.9 118.8 110.1 110.2 99.8 102.1 97.0 100.4 147.7 105.4 

 I 107.4 117.0 108.9 110.7 100.9 103.0 97.8 101.3 139.0 105.2 

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

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

 III 107.9 116.3 107.7 108.2 99.5 100.2 97.8 99.4 147.6 104.5 

 II 108.5 116.1 107.1 108.3 100.1 99.8 97.5 99.1 150.5 104.4 

 I 107.2 114.5 106.8 107.1 99.0 99.9 98.5 99.5 148.0 104.5 

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

See footnotes following Table 6. February 4, 2016

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. Hours and compensation data are from the Bureau of Labor Statistics and the Bureau of Economic 

Analysis.

RELIABILITY: Productivity and cost measures are regularly revised as more complete information becomes 

available. The measures are first published within 40 days of the close of the reference period; revisions appear 

30 days later, and second revisions after an additional 60 days. In the business sector, the third publication 

(second revision) of a quarterly index of output per hour of all persons has differed from the initial value by 

between –1.6 and 1.4 index points approximately 95 percent of the time. This interval is based on the 

performance of this measure between the fourth quarter of 1995 and the third quarter of 2015. 

Table Footnotes

(1) Wages and salaries of employees plus employers' contributions for social insurance and private benefit 

plans. Except for nonfinancial corporations, where there are no self-employed, data also include an estimate of 

wages, salaries, and supplemental payments for the self-employed. 

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

(CPI-U). The trend from 1978-2014 is based on the Consumer Price Index research series (CPI-U-RS).

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

subsidies, net interest and miscellaneous payments, business current transfer payments, rental income of 

persons, and the current surplus of government enterprises.

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

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

decimal places. Indexes published in the news release are rounded to one decimal place for convenience. 

Annual changes: Percent change is calculated using annual indexes to three decimal places.

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

net interest and miscellaneous payments, and business current transfer payments. 

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

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

adjustments.