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

Media contact: (202) 691-5902 TUESDAY, MARCH 7, 2006 

PRODUCTIVITY AND COSTS 

Fourth Quarter and Annual Averages, 2005 Revised 

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

fourth-quarter seasonally-adjusted annual rates of productivity change—as measured by output 

per hour of all persons—and revised changes for calendar year 2005. Percent changes in 

business and nonfarm business productivity were: 

 Fourth Annual averages 

 quarter 2004-2005 

Business sector........................................ 0.0 2.7 

Nonfarm business sector......................... -0.5 2.9 

In the business sector, output per hour was unchanged from the third quarter to the fourth 

quarter of 2005, compared to the preliminary estimate of a 0.2 percent decline published 

February 2. In nonfarm businesses, productivity fell 0.5 percent, slightly less than the 0.6 

percent decline reported previously (seasonally adjusted annual rates). Nonfarm business 

productivity last declined during the first quarter of 2001, when it fell 0.6 percent. On an annual 

average basis, productivity rose 2.7 percent in the business sector, 0.1 percentage point more 

than previously reported, and increased 2.9 percent in nonfarm businesses, compared to the 

preliminary estimate of 2.7 percent. 

 In the manufacturing sector, increases in productivity were: 

 Fourth Annual averages 

 quarter 2004-2005 

Manufacturing......................................... 4.7 5.0 

 Durable goods manufacturing............... 10.2 6.6 

 Nondurable goods manufacturing......... -2.0 3.4 

Productivity in total manufacturing grew at a 4.7 percent annual rate in the fourth quarter 

of 2005, more than the 3.9 percent preliminary estimate, as a downward revision to fourth-
2 

quarter productivity growth in nondurable goods manufacturing partially offset an upward 

revision to output per hour in the durable goods subsector. 

When revised annual averages for 2005 are compared to those for 2004, productivity 

increases were revised up in total manufacturing and nondurable manufacturing, while the 6.6 

percent increase in durable manufacturing output per hour was the same as the preliminary 

estimate published February 2. Output and hours in manufacturing, which includes about 13 

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. Fourth-quarter productivity and related 

measures are summarized in table A and appear in detail in tables 1 through 5. Preliminary and 

revised fourth-quarter and annual data appear in table C. 

Table A. Productivity and costs: Revised fourth-quarter 2005 measures 

(Seasonally adjusted annual rates) 

Sector 

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation 

Unit 

labor 

costs 

 Percent change from preceding quarter 

 Business 0.0 1.8 1.7 3.1 -0.1 3.1 

 Nonfarm business -0.5 1.5 2.0 2.8 -0.4 3.3 

 Manufacturing 4.7 9.3 4.4 1.8 -1.4 -2.8 

 Durable 10.2 15.3 4.6 1.8 -1.4 -7.7 

 Nondurable -2.0 2.0 4.0 1.8 -1.4 3.9 

 Percent change from same quarter a year ago 

 Business 2.4 3.7 1.3 3.6 -0.1 1.2 

 Nonfarm business 2.5 3.7 1.2 3.8 0.1 1.3 

 Manufacturing 4.3 4.3 0.0 4.5 0.7 0.2 

 Durable 6.8 7.8 0.9 4.2 0.4 -2.5 

 Nondurable 1.4 -0.1 -1.5 4.9 1.2 3.5 

 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 prepared by the Board of Governors of the Federal Reserve System. See 

Technical Notes (page 9) for further information on data sources. 
3 

THIRD-TO-FOURTH QUARTER 2005 CHANGES 

Business 

 Labor productivity in the business sector was unchanged in the fourth quarter of 2005, as 

output increased 1.8 percent and hours of all persons engaged in the sector increased 1.7 percent 

(table 1). Revised estimates show that output per hour increased 4.9 percent in the third quarter, 

as output increased 4.8 percent and hours declined 0.1 percent. 

 Hourly compensation grew at a 3.1-percent annual rate in the fourth quarter, compared 

with a 6.0-percent rise in the third quarter. This measure includes wages and salaries, 

supplements, employer contributions to employee-benefit plans, and taxes. Real hourly 

compensation, which takes into account changes in consumer prices, declined 0.1 percent in the 

fourth quarter of 2005 after increasing 0.9 percent one quarter earlier. 

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

increased 3.1 percent during the fourth quarter of 2005, after rising 1.1 percent in the third 

quarter. The implicit price deflator for business output, which reflects changes in unit labor 

costs and unit nonlabor payments, increased 3.4 percent in the fourth quarter and 3.2 percent in 

the third quarter. 

Nonfarm business 

In the nonfarm business sector, productivity fell at an annual rate of 0.5 percent in the 

fourth quarter of 2005, as output rose 1.5 percent and hours of all persons—employees, 

proprietors, and unpaid family workers—grew 2.0 percent (seasonally adjusted annual rates). 

Nonfarm business productivity increased 4.2 percent in the third quarter of 2005, as output and 

hours grew 4.7 percent and 0.4 percent, respectively (table 2). 

 Hourly compensation rose 2.8 percent in the fourth quarter, after increasing 5.5 percent in 

the third quarter. When the increase in consumer prices was taken into account, real hourly 

compensation fell 0.4 percent in the fourth quarter and rose 0.3 percent in the third quarter. 

Unit labor costs rose 3.3 percent in the fourth quarter after increasing 1.2 percent one 

quarter earlier. The implicit price deflator for nonfarm business increased 3.4 percent in the 

fourth quarter, and 3.5 percent in the third quarter, of 2005. 

Manufacturing 

Manufacturing productivity increased 4.7 percent in the fourth quarter of 2005, as output 

grew 9.3 percent and hours grew 4.4 percent (seasonally adjusted annual rates). The hours 

increase was the largest since the second quarter of 1996, when hours grew 6.3 percent. In 

durable goods industries, productivity increased 10.2 percent when output grew 15.3 percent and 

hours rose 4.6 percent. In nondurable goods industries, output per hour fell 2.0 percent, 

reflecting increases of 2.0 percent in output and 4.0 percent in hours. During the third quarter, 

productivity increased 3.7 percent in total manufacturing, 6.5 percent in durable goods 

manufacturing, and 0.7 percent in nondurable goods manufacturing (tables 3, 4, and 5). 
4 

 Hourly compensation increased 1.8 percent during the fourth quarter in total 

manufacturing and in both subsectors. When the increase in consumer prices was taken into 

account, real hourly compensation fell 1.4 percent in the fourth quarter for workers in total, 

durable, and nondurable manufacturing. 

Unit labor costs in manufacturing fell 2.8 percent in the fourth quarter of 2005, after 

increasing 1.8 percent in the third quarter. These costs declined 7.7 percent in durable goods 

industries and rose 3.9 percent in nondurable goods industries during the fourth quarter of 2005. 

ANNUAL AVERAGE CHANGES, 2004-2005 

Business 

Business sector productivity increased 2.7 percent when the annual average for 2005 was 

compared with the annual average for 2004 (table B). Output increased 4.0 percent and hours of 

all persons engaged in the sector rose 1.3 percent. The 2.7-percent increase in 2005 followed a 

three-year period in which productivity growth increased rapidly, at an average of 3.9 percent 

per year, and is the same as the 2.7-percent productivity trend from 1995 to 2001. 

Table B. Productivity and costs: Revised 2005 annual averages 

(Seasonally adjusted annual rates) 

Sector 

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation 

Unit 

labor 

costs 

Percent change from previous year 

Business 2.7 4.0 1.3 5.4 2.0 2.7 

Nonfarm business 2.9 4.2 1.3 5.5 2.1 2.6 

Manufacturing 5.0 3.9 -1.1 7.0 3.5 1.9 

 Durable 6.6 6.4 -0.2 6.6 3.2 0.0 

 Nondurable 3.4 0.7 -2.6 7.6 4.1 4.0 

 Hourly compensation in the business sector increased 5.4 percent in 2005 and 4.7 percent 

in 2004. Real hourly compensation increased 2.0 percent in each of the last two years. 

 Business sector unit labor costs increased 2.7 percent in 2005, more than in any calendar 

year since 2000, when these costs increased 4.0 percent. In 2004, unit labor costs rose 1.2 

percent. The implicit price deflator rose 2.6 percent in 2005 and 2.4 percent in 2004. 
5 

Nonfarm business

Productivity increased 2.9 percent in the nonfarm business sector during 2005. Output 

grew 4.2 percent and hours of all persons increased 1.3 percent. In 2004, productivity grew 3.4 

percent, as output grew 4.8 percent and hours increased 1.3 percent. As in the more 

comprehensive business sector, nonfarm productivity grew at an above-average rate from 2001 

to 2004, 3.8 percent. Productivity grew at an annual rate of 2.5 percent from 1995 to 2001. 

Hourly compensation grew 5.5 percent in 2005. This was the largest increase in this 

measure since 2000 (7.1 percent), and followed a 4.6-percent increase in 2004. Real hourly 

compensation increased 2.1 percent in 2005 and 1.8 percent in 2004. 

Unit labor costs in the nonfarm business sector rose 2.6 percent in 2005, after rising 1.1 

percent in 2004. The 2005 increase in unit labor costs was the largest since 2000, when these 

costs increased 4.2 percent. The implicit price deflator, which reflects nonlabor payments as 

well as labor costs, increased 2.8 percent in 2005, following a 2.1-percent rise in 2004. 

Manufacturing 

Manufacturing productivity grew 5.0 percent in 2005, reflecting a 3.9-percent rise in 

output and a 1.1-percent decline in hours. In 2004, output per hour had increased 5.5 percent, as 

output grew 5.0 percent and hours declined 0.5 percent. Labor productivity increased 6.6 

percent in durable goods manufacturing during 2005, as output grew 6.4 percent and hours 

declined 0.2 percent. In nondurable goods manufacturing, productivity rose 3.4 percent in 2005, 

as output rose 0.7 percent and hours fell 2.6 percent (tables B, 3, 4, and 5). 

 Hourly compensation of manufacturing workers increased 7.0 percent in 2005, compared 

to a 2.3-percent increase one year earlier. Hourly compensation increased 6.6 percent in durable 

goods industries and 7.6 percent in nondurable goods industries in 2005. Real hourly 

compensation in the manufacturing sector rose 3.5 percent in 2005 and fell 0.4 percent in 2004. 

Unit labor costs rose 1.9 percent in manufacturing from 2004 to 2005. In durable 

manufacturing, annual average unit labor costs were unchanged from 2004 to 2005. Unit labor 

costs in nondurable manufacturing rose by 4.0 percent last year. 

REVISED MEASURES 

 Productivity and cost data for the fourth quarter and full year 2005 for business, nonfarm 

business, and manufacturing were revised to incorporate the most recent information. Thirdquarter 2005 measures of hourly compensation, real hourly compensation, and unit labor costs 

were revised to reflect new information on compensation from the National Income and Product 

Accounts (table C). Quarterly measures of real hourly compensation during 2005 also reflect the 

recalculation of seasonal factors for the Consumer Price Index for All Urban Consumers. 

Quarterly and annual measures for all sectors were revised back to 2001 to incorporate 

the annual benchmark adjustment and updated information on seasonal trends from the BLS 
6 

nonfarm payroll series (appendix tables 1-5). In addition, hours and related measures for the 

business and nonfarm business sectors were revised historically in order to fully incorporate 

Current Population Survey data on hours by job based on the most recent population weights 

available for all series. Full quarterly and annual historical series are available on the BLS 

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

Productivity. 

Table C. Previous and revised productivity and related measures: 

Fourth-quarter, third-quarter, and annual averages 2005 

(Seasonally adjusted annual rates) 

Sector 

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation 

Unit 

labor 

costs 

Percent change, third to fourth quarter 2005 

Business: 

 Previous ....................... -0.2 1.0 1.2 3.2 0.0 3.4 

 Revised......................... 0.0 1.8 1.7 3.1 -0.1 3.1 

Nonfarm business: 

 Previous ....................... -0.6 0.9 1.5 2.8 -0.4 3.5 

 Revised......................... -0.5 1.5 2.0 2.8 -0.4 3.3 

Manufacturing: 

 Previous ....................... 3.9 8.4 4.4 1.9 -1.3 -1.9 

 Revised......................... 4.7 9.3 4.4 1.8 -1.4 -2.8 

Percent change, second to third quarter 2005 

Business: 

 Previous ....................... 5.2 4.8 -0.4 4.6 -0.5 -0.6 

 Revised......................... 4.9 4.8 -0.1 6.0 0.9 1.1 

Nonfarm business: 

 Previous ....................... 4.5 4.7 0.1 4.1 -1.0 -0.5 

 Revised......................... 4.2 4.7 0.4 5.5 0.3 1.2 

Manufacturing: 

 Previous ....................... 3.7 2.6 -1.0 3.7 -1.3 0.1 

 Revised......................... 3.7 2.6 -1.0 5.6 0.5 1.8 

Percent change, 2004 - 2005 

Business: 

 Previous ....................... 2.6 4.0 1.3 5.1 1.7 2.5 

 Revised......................... 2.7 4.0 1.3 5.4 2.0 2.7 

Nonfarm business: 

 Previous ....................... 2.7 4.1 1.4 5.2 1.8 2.4 

 Revised......................... 2.9 4.2 1.3 5.5 2.1 2.6 

Manufacturing: 

 Previous ....................... 4.8 3.8 -0.9 6.6 3.2 1.7 

 Revised......................... 5.0 3.9 -1.1 7.0 3.5 1.9 

In fourth-quarter 2005, business sector productivity was unchanged, rather than declining 

0.2 percent, as reported in the preliminary estimate February 2 (seasonally adjusted annual rates). 
7 

In the nonfarm business sector, productivity did fall, by 0.5 percent, slightly less than the 0.6 

percent preliminary estimate. The upward revisions to business and nonfarm business 

productivity occurred as hours were revised up by less than output. Unit labor costs did not 

increase as much as in the preliminary estimate. 

In the manufacturing sector, productivity and output were revised up, while hours were 

unchanged from the preliminary estimate. The upward revision to productivity, combined with a 

small downward revision in hourly compensation, lead to a revision in the change in unit labor 

costs from a decline of 1.9 percent to a decrease of 2.8 percent. 

Measures of hourly compensation, real hourly compensation, and unit labor costs in all 

sectors were revised upwards substantially in the third quarter of 2005 after incorporation of 

revised compensation data. 

When annual averages for 2005 are compared to those for 2004, productivity increased 

2.7 percent in the business sector and 2.9 percent in the nonfarm business sectors, a little higher 

than previously reported. Small upward revisions to hourly compensation in both of these 

sectors led to larger increases in unit labor costs than previously reported. Manufacturing 

productivity growth was revised up as output rose more, and hours declined faster, than in the 

preliminary estimate. Because hourly compensation was revised up more than productivity, unit 

labor costs increased more than previously reported. 

 
8 

Revised measures: Nonfinancial corporations 

 Measures for the nonfinancial corporate sector also were revised due to updated 

information on hours worked by employees (appendix table 6). New information on output and 

compensation in the third quarter of 2005 also impacted measures for this sector (table 6). 

Productivity in nonfinancial corporations in third-quarter 2005 increased more than in the 

preliminary estimates, as an upward revision to output was partially offset by an upward revision 

to hours worked. Hourly compensation was revised up by more than productivity, and unit labor 

costs increased more than published Feb. 2. Unit profits were revised down, posting a larger 

decline than originally reported. 

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

Quarterly percent c anges at easonally adjusted annual rate h s s

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation 

Unit 

labor 

costs 

Unit 

profits 

Implicit 

price 

deflator

Third quarter 2005 

Previous 3.2 4.1 0.8 4.9 -0.2 1.6 -7.9 2.1 

Revised 4.1 5.1 1.0 6.3 1.1 2.1 -8.8 2.1 

Next release date 

 The next release of Productivity and Costs is scheduled for 8:30 A.M. EDT, Thursday, 

May 4, 2006, and will present preliminary first-quarter 2006 measures for business, nonfarm 

business, and manufacturing. Fourth-quarter 2005 and annual average data for 2005 for 

nonfinancial corporations will be released at that time. 
9 

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 an annual-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 also 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 BEA. These deflators are based on data from the BLS producer price 

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

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

of industrial production prepared monthly by the Board of Governors of the Federal Reserve System, 

adjusted to be consistent with annual indexes of manufacturing sector output prepared by BLS. 

Durables include the following 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 an annual-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 

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 
10 

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. 
11 

 

 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 

 2003 I r125.6 144.6 r115.2 r147.8 r115.5 r117.7 r116.5 117.2 

 II r127.9 146.4 r114.4 r150.3 r117.4 r117.5 r117.2 117.4 

 III r130.5 149.8 r114.8 r151.9 r118.0 r116.4 r120.4 117.9 

 IV r130.5 150.8 r115.5 r152.8 r118.4 r117.1 r120.5 118.3 

 ANNUAL r128.6 147.9 r115.0 r150.7 r117.3 r117.1 r118.7 117.7 

 2004 I r131.7 152.6 r115.9 r154.4 r118.5 r117.2 r123.2 119.4 

 II r132.9 154.1 r116.0 r155.8 r118.3 r117.3 r126.1 120.5 

 III r133.4 155.8 r116.8 r158.3 r119.7 r118.6 r124.3 120.7 

 IV r134.3 157.2 r117.1 r162.5 r121.8 r121.0 r122.2 121.5 

 ANNUAL r133.1 154.9 r116.4 r157.8 r119.6 r118.5 r123.9 120.6 

 2005 I r135.4 158.9 r117.3 r164.5 r122.5 r121.4 r123.7 122.3 

 II r135.8 160.4 r118.1 r164.7 r121.4 r121.2 r126.2 123.1 

 III r137.5 162.3 r118.1 r167.1 r121.7 r121.6 r128.3 124.1 

 IV r137.5 r163.0 r118.6 r168.4 r121.7 r122.5 r129.5 r125.1 

 ANNUAL r136.7 r161.2 r117.9 r166.4 r122.0 r121.7 r126.9 r123.6 

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

 Percent change from previous quarter at annual rate(5) 

 2003 I r3.7 1.7 r-1.9 r5.8 r1.5 r2.0 r1.5 1.8 

 II r7.5 4.9 r-2.5 r7.1 r6.7 r-0.4 r2.5 0.6 

 III 8.4 9.9 1.3 r4.3 r2.1 r-3.8 r11.2 1.6 

 IV r0.0 2.6 r2.5 r2.4 r1.5 r2.4 r0.5 1.6 

 ANNUAL r4.1 3.4 r-0.7 r4.0 r1.7 r-0.1 r3.9 1.4 

 2004 I r3.7 4.9 r1.2 4.2 r0.2 r0.5 r9.1 3.7 

 II r3.7 4.0 r0.3 r3.9 r-0.5 r0.2 r9.8 3.8 

 III r1.6 4.4 r2.8 r6.4 r4.7 r4.8 r-5.5 0.7 

 IV r2.7 3.6 r0.9 r11.2 r7.4 r8.3 r-6.5 2.4 

 ANNUAL r3.5 4.8 1.3 r4.7 r2.0 1.2 4.4 2.4 

 2005 I r3.4 4.4 r0.9 r4.8 r2.4 r1.3 r5.1 2.7 

 II r1.1 4.0 r2.8 r0.5 r-3.5 r-0.6 r8.3 2.6 

 III r4.9 4.8 r-0.1 r6.0 r0.9 r1.1 r6.7 3.2 

 IV r0.0 r1.8 r1.7 r3.1 r-0.1 r3.1 r3.8 r3.4 

 ANNUAL r2.7 4.0 1.3 r5.4 r2.0 r2.7 r2.4 2.6 

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

 Percent change from corresponding quarter of previous year 

 2003 I r2.5 2.0 r-0.6 r3.1 r0.2 r0.5 r2.9 1.4 

 II r3.9 2.6 r-1.2 r3.7 r1.5 -0.2 r4.0 1.3 

 III r4.9 4.2 r-0.7 4.3 r2.1 r-0.6 r4.8 1.4 

 IV r4.9 4.7 r-0.2 r4.9 2.9 r0.0 r3.8 1.4 

 ANNUAL r4.1 3.4 r-0.7 r4.0 r1.7 r-0.1 r3.9 1.4 

 2004 I 4.9 5.5 0.6 4.5 2.6 -0.4 5.7 1.9 

 II r3.9 5.3 1.4 r3.7 0.8 -0.2 r7.5 2.7 

 III r2.2 4.0 r1.7 r4.2 r1.5 1.9 3.3 2.4 

 IV r2.9 4.2 r1.3 r6.4 r2.9 3.4 r1.4 2.6 

 ANNUAL r3.5 4.8 1.3 r4.7 r2.0 1.2 4.4 2.4 

 2005 I r2.8 4.1 r1.2 r6.5 r3.4 3.6 0.5 2.4 

 II r2.2 4.1 r1.9 r5.7 r2.7 3.4 0.1 2.1 

 III 3.0 4.2 1.1 r5.6 r1.7 r2.5 r3.2 2.7 

 IV r2.4 r3.7 1.3 r3.6 r-0.1 r1.2 r6.0 r3.0 

 ANNUAL r2.7 4.0 1.3 r5.4 r2.0 r2.7 r2.4 2.6 

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

 See footnotes following Table 6. March 7, 2006 

 r=revised Source: Bureau of Labor Statistics 
12 

 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 

 2003 I r125.0 144.8 r115.9 r147.0 r114.9 r117.6 r118.3 117.9 

 II r126.9 146.5 r115.4 r149.2 r116.5 r117.6 r118.7 118.0 

 III r129.9 150.2 r115.6 r151.1 r117.3 r116.3 r121.7 118.3 

 IV r130.1 151.2 r116.3 r152.1 r117.9 r117.0 r121.3 118.6 

 ANNUAL r128.0 148.2 r115.8 r149.9 r116.6 r117.1 r120.0 118.2 

 2004 I r130.8 152.8 r116.8 r153.4 r117.7 r117.3 r123.6 119.6 

 II r132.3 154.5 r116.8 r154.9 r117.6 r117.1 r126.4 120.6 

 III r132.8 156.3 r117.6 r157.3 r118.9 r118.4 r125.4 121.0 

 IV r133.5 157.7 r118.2 r161.1 r120.7 r120.7 r123.6 121.8 

 ANNUAL r132.4 155.3 r117.3 r156.7 r118.8 r118.4 r124.8 120.7 

 2005 I r134.7 159.4 r118.3 r163.3 r121.7 r121.2 r125.1 122.7 

 II r135.5 161.2 r118.9 r163.8 r120.9 r120.9 r127.9 123.5 

 III r136.9 163.0 r119.1 r166.0 r121.0 r121.3 r130.1 124.5 

 IV r136.7 r163.6 r119.6 r167.2 r120.8 r122.3 r131.3 r125.6 

 ANNUAL r136.1 r161.8 r118.9 r165.3 r121.2 r121.4 r128.6 r124.1 

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

 Percent change from previous quarter at annual rate(5) 

 2003 I r3.8 2.0 r-1.7 r5.9 r1.6 r2.0 r1.8 1.9 

 II r6.3 4.7 r-1.5 6.2 5.8 r-0.1 r1.4 0.4 

 III r9.8 10.4 r0.6 r5.0 r2.8 r-4.3 r10.6 1.0 

 IV r0.5 2.8 r2.2 r2.8 r1.9 r2.2 r-1.5 0.8 

 ANNUAL r3.9 3.3 r-0.6 4.0 1.6 r0.0 r3.4 1.3 

 2004 I r2.4 4.2 r1.7 r3.4 -0.5 r1.0 r7.9 3.6 

 II 4.5 4.6 0.1 r4.0 r-0.4 r-0.5 r9.5 3.2 

 III r1.7 4.6 r2.9 r6.2 r4.5 r4.5 r-3.2 1.5 

 IV r2.0 3.9 r1.9 r10.0 r6.2 r7.9 r-5.7 2.6 

 ANNUAL 3.4 4.8 r1.3 r4.6 1.8 1.1 3.9 2.1 

 2005 I r3.8 4.3 r0.5 r5.6 r3.2 r1.8 r5.1 3.0 

 II r2.4 4.4 r2.0 r1.3 r-2.7 r-1.0 r9.0 2.7 

 III r4.2 4.7 r0.4 r5.5 r0.3 r1.2 r7.3 3.5 

 IV r-0.5 r1.5 r2.0 2.8 -0.4 r3.3 r3.6 r3.4 

 ANNUAL r2.9 r4.2 r1.3 r5.5 r2.1 r2.6 r3.1 2.8 

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

 Percent change from corresponding quarter of previous year 

 2003 I r2.2 1.7 r-0.5 r3.1 0.1 r0.9 r2.8 1.6 

 II 3.5 2.5 r-1.0 3.5 1.3 r0.0 r3.4 1.2 

 III r4.9 4.2 r-0.7 r4.3 2.1 r-0.6 r4.3 1.2 

 IV 5.0 4.9 r-0.1 5.0 3.0 r-0.1 r3.0 1.0 

 ANNUAL r3.9 3.3 r-0.6 4.0 1.6 r0.0 r3.4 1.3 

 2004 I 4.7 5.5 r0.8 r4.3 2.5 -0.3 4.5 1.5 

 II 4.2 5.5 1.2 r3.8 0.9 -0.4 6.5 2.1 

 III r2.3 4.0 r1.7 r4.1 r1.4 1.8 3.0 2.3 

 IV 2.6 4.3 1.7 r5.9 2.4 3.2 1.9 2.7 

 ANNUAL 3.4 4.8 r1.3 r4.6 1.8 1.1 3.9 2.1 

 2005 I r3.0 4.4 r1.4 r6.4 r3.4 3.4 1.2 2.6 

 II r2.4 4.3 r1.8 r5.8 r2.7 r3.2 1.1 2.4 

 III 3.1 4.3 1.2 r5.6 r1.7 r2.4 r3.8 2.9 

 IV r2.5 r3.7 1.2 r3.8 r0.1 r1.3 r6.2 3.1 

 ANNUAL r2.9 r4.2 r1.3 r5.5 r2.1 r2.6 r3.1 2.8 

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

 See footnotes following Table 6. March 7, 2006 

 r=revised Source: Bureau of Labor Statistics 
13 

 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 

 2003 I r151.1 131.3 r86.9 r156.6 r122.4 r103.7 

 II r152.6 130.5 r85.5 r159.1 r124.2 r104.3 

 III r156.5 131.8 r84.2 r161.5 r125.4 r103.2 

 IV r157.6 133.8 r84.9 r163.2 r126.4 103.6 

 ANNUAL r154.4 131.8 r85.4 r160.1 r124.6 r103.7 

 2004 I r159.0 135.7 r85.4 r159.2 r122.1 r100.1 

 II r162.2 137.9 r85.0 r161.2 r122.4 r99.4 

 III r164.0 139.3 r84.9 r165.0 r124.8 r100.6 

 IV r166.7 140.8 r84.4 r169.9 r127.3 r101.9 

 ANNUAL r163.0 138.4 r84.9 r163.8 r124.1 r100.5 

 2005 I r168.7 142.2 r84.3 r172.8 r128.7 r102.4 

 II r170.3 142.7 r83.8 r174.3 r128.6 r102.4 

 III r171.8 143.6 r83.6 r176.7 r128.7 r102.8 

 IV r173.8 r146.8 r84.5 r177.5 r128.3 r102.1 

 ANNUAL r171.2 r143.8 r84.0 r175.3 r128.5 r102.4 

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

 Percent change from previous quarter at annual rate(5) 

 2003 I r7.1 0.3 r-6.4 r18.1 r13.3 10.2 

 II r4.1 -2.5 r-6.3 r6.7 r6.3 2.5 

 III r10.6 3.9 r-6.0 r6.1 r3.9 -4.0 

 IV r2.8 6.4 r3.5 r4.2 r3.2 1.3 

 ANNUAL 5.6 0.5 -4.9 8.3 r5.9 2.5 

 2004 I r3.6 5.9 r2.2 r-9.6 r-13.0 -12.7 

 II 8.3 6.6 -1.6 5.1 0.7 -3.0 

 III r4.6 4.1 r-0.4 r10.0 r8.2 5.1 

 IV r6.7 4.3 r-2.3 r12.3 r8.5 5.2 

 ANNUAL r5.5 5.0 r-0.5 r2.3 r-0.4 -3.1 

 2005 I r4.8 4.2 r-0.5 r6.9 r4.5 r2.0 

 II r3.9 1.2 r-2.5 r3.6 r-0.5 -0.2 

 III 3.7 2.6 -1.0 r5.6 r0.5 r1.8 

 IV r4.7 r9.3 4.4 r1.8 r-1.4 r-2.8 

 ANNUAL r5.0 r3.9 r-1.1 r7.0 r3.5 r1.9 

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

 Percent change from corresponding quarter of previous year 

 2003 I r5.4 0.9 r-4.3 r8.3 r5.3 2.7 

 II 4.9 -0.8 -5.4 7.8 5.5 2.8 

 III 6.1 -0.2 -6.0 8.4 6.0 2.1 

 IV 6.1 2.0 -3.9 r8.6 6.6 2.4 

 ANNUAL 5.6 0.5 -4.9 8.3 r5.9 2.5 

 2004 I 5.2 3.4 -1.8 1.6 -0.2 -3.4 

 II r6.3 5.7 r-0.6 r1.3 r-1.5 -4.7 

 III r4.8 5.7 0.9 r2.2 r-0.5 -2.5 

 IV r5.8 5.2 r-0.6 r4.1 r0.7 -1.6 

 ANNUAL r5.5 5.0 r-0.5 r2.3 r-0.4 -3.1 

 2005 I r6.1 4.8 r-1.2 r8.6 r5.4 2.3 

 II r5.0 3.4 r-1.5 r8.2 r5.1 3.0 

 III r4.8 3.1 r-1.6 r7.1 r3.2 r2.2 

 IV r4.3 r4.3 0.0 r4.5 r0.7 r0.2 

 ANNUAL r5.0 r3.9 r-1.1 r7.0 r3.5 r1.9 

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

 See footnotes following Table 6. March 7, 2006 

 r=revised Source: Bureau of Labor Statistics 
14 

 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 

 2003 I r173.8 156.6 r90.1 r155.0 r121.1 r89.2 

 II r175.9 155.9 r88.6 r157.6 r123.0 r89.6 

 III 182.4 158.9 87.1 160.1 124.3 87.8 

 IV r184.0 162.6 r88.3 r161.9 r125.5 88.0 

 ANNUAL r179.0 158.5 r88.5 r158.6 r123.4 r88.6 

 2004 I r185.9 165.9 r89.2 r155.6 r119.4 r83.7 

 II r189.7 168.7 r89.0 r158.1 r120.0 83.4 

 III r192.1 171.6 r89.3 r162.0 r122.5 r84.3 

 IV r195.9 174.1 r88.9 r166.2 r124.6 r84.8 

 ANNUAL r190.9 170.1 r89.1 r160.5 r121.6 84.1 

 2005 I r199.1 177.0 r88.9 r169.0 r125.9 84.9 

 II r201.1 178.1 r88.6 r169.9 r125.3 r84.5 

 III r204.3 181.2 r88.7 r172.3 r125.5 r84.4 

 IV r209.3 r187.7 r89.7 r173.1 r125.1 r82.7 

 ANNUAL r203.5 r181.0 r89.0 r171.1 r125.4 r84.1 

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

 Percent change from previous quarter at annual rate(5) 

 2003 I r7.8 0.7 r-6.6 r22.4 r17.5 13.6 

 II r5.0 -1.8 r-6.5 r6.9 r6.5 1.8 

 III r15.4 8.0 r-6.5 r6.4 r4.2 -7.8 

 IV 3.7 9.5 5.6 r4.8 3.8 1.0 

 ANNUAL 7.9 2.2 -5.3 r9.4 6.9 1.4 

 2004 I r4.1 8.5 r4.2 r-14.8 r-18.0 -18.1 

 II r8.4 7.0 r-1.2 r6.6 r2.1 -1.6 

 III r5.3 6.9 r1.5 r10.1 r8.3 4.6 

 IV r8.2 6.1 r-1.9 r10.9 r7.0 2.5 

 ANNUAL r6.7 7.3 0.6 r1.2 -1.5 -5.2 

 2005 I r6.7 6.8 r0.1 r6.9 r4.4 0.2 

 II r4.0 2.6 r-1.4 r2.3 r-1.8 r-1.7 

 III r6.5 7.0 r0.4 r5.8 r0.6 r-0.7 

 IV r10.2 r15.3 r4.6 r1.8 r-1.4 r-7.7 

 ANNUAL 6.6 r6.4 -0.2 r6.6 r3.2 r0.0 

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

 Percent change from corresponding quarter of previous year 

 2003 I r7.9 2.7 r-4.8 r9.2 r6.1 1.3 

 II 7.0 0.5 -6.1 8.7 6.4 1.6 

 III 8.8 1.5 -6.7 9.6 7.3 0.7 

 IV 7.9 4.0 -3.6 9.9 r7.9 1.9 

 ANNUAL 7.9 2.2 -5.3 r9.4 6.9 1.4 

 2004 I 7.0 5.9 -1.0 0.4 -1.4 -6.1 

 II 7.8 8.2 0.4 0.3 r-2.4 -6.9 

 III 5.4 8.0 r2.5 r1.2 r-1.5 -3.9 

 IV r6.5 7.1 r0.6 r2.6 r-0.7 -3.6 

 ANNUAL r6.7 7.3 0.6 r1.2 -1.5 -5.2 

 2005 I r7.1 6.7 r-0.4 r8.6 5.5 1.4 

 II r6.0 5.6 r-0.4 7.5 r4.4 1.4 

 III r6.3 5.6 -0.7 r6.4 r2.5 r0.1 

 IV r6.8 r7.8 r0.9 r4.2 r0.4 r-2.5 

 ANNUAL 6.6 r6.4 -0.2 r6.6 r3.2 r0.0 

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

 See footnotes following Table 6. March 7, 2006 

 r=revised Source: Bureau of Labor Statistics 
15 

 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 

 2003 I r128.9 105.8 r82.1 r158.1 r123.5 122.7 

 II r129.8 104.9 r80.9 r160.5 r125.3 r123.7 

 III r131.3 104.7 r79.8 r162.8 r126.4 r124.0 

 IV r132.1 105.4 r79.8 r163.8 r126.9 r124.0 

 ANNUAL r130.5 105.2 r80.6 r161.3 r125.5 r123.6 

 2004 I r133.3 106.1 r79.6 r164.1 r125.9 r123.1 

 II r136.1 107.7 r79.1 r165.1 r125.3 r121.3 

 III r137.6 107.8 r78.4 r168.7 r127.5 r122.6 

 IV r139.3 108.4 r77.8 r174.7 r131.0 r125.5 

 ANNUAL r136.6 107.5 r78.7 r168.1 r127.4 r123.1 

 2005 I r140.2 108.6 r77.5 r177.7 r132.4 r126.7 

 II r141.7 108.5 r76.6 r180.3 r133.0 r127.3 

 III r141.9 107.7 r75.9 r182.5 r132.9 r128.6 

 IV r141.2 r108.3 r76.7 r183.3 r132.5 r129.8 

 ANNUAL r141.2 r108.3 r76.7 r180.9 r132.7 r128.1 

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

 Percent change from previous quarter at annual rate(5) 

 2003 I 6.2 -0.2 -6.0 10.3 5.9 3.9 

 II 2.9 -3.2 r-6.0 r6.4 5.9 3.3 

 III r4.7 -0.8 r-5.3 r5.7 r3.5 1.0 

 IV r2.5 2.6 r0.1 r2.5 r1.6 r-0.1 

 ANNUAL 2.9 -1.5 -4.2 6.4 4.0 3.4 

 2004 I r3.7 2.6 r-1.1 r0.8 r-3.0 -2.8 

 II r8.5 6.0 r-2.3 r2.4 r-1.9 -5.7 

 III r4.5 0.7 r-3.6 r9.1 r7.3 4.4 

 IV r5.0 2.0 r-2.8 r15.1 r11.1 9.6 

 ANNUAL r4.6 2.2 r-2.4 r4.2 r1.5 -0.4 

 2005 I r2.7 0.9 r-1.7 r6.9 r4.5 r4.1 

 II r4.2 -0.4 r-4.4 r6.0 r1.8 1.7 

 III r0.7 -2.8 r-3.5 r5.0 r-0.1 r4.2 

 IV r-2.0 r2.0 r4.0 r1.8 r-1.4 r3.9 

 ANNUAL r3.4 0.7 r-2.6 r7.6 r4.1 4.0 

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

 Percent change from corresponding quarter of previous year 

 2003 I 2.6 -0.9 r-3.5 6.7 3.7 4.0 

 II 2.1 -2.3 -4.3 6.4 4.1 4.2 

 III 2.7 -2.2 -4.8 6.2 3.9 3.4 

 IV r4.1 -0.4 r-4.3 r6.2 r4.2 2.0 

 ANNUAL 2.9 -1.5 -4.2 6.4 4.0 3.4 

 2004 I 3.5 0.3 -3.1 3.8 r1.9 0.3 

 II r4.9 2.6 r-2.2 r2.8 r0.0 -1.9 

 III r4.8 3.0 r-1.7 r3.6 r0.9 -1.1 

 IV r5.4 2.8 r-2.5 r6.7 r3.2 1.2 

 ANNUAL r4.6 2.2 r-2.4 r4.2 r1.5 -0.4 

 2005 I r5.2 2.4 r-2.6 r8.3 r5.1 r3.0 

 II r4.1 0.8 r-3.2 r9.2 r6.1 4.9 

 III r3.1 -0.1 r-3.1 r8.2 r4.2 r4.9 

 IV r1.4 -0.1 r-1.5 r4.9 r1.2 r3.5 

 ANNUAL r3.4 0.7 r-2.6 r7.6 r4.1 4.0 

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

 See footnotes following Table 6. March 7, 2006 

 r=revised Source: Bureau of Labor Statistics 
16 

 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 

 2003 I r130.5 152.4 r116.7 r144.6 r113.0 110.8 111.4 111.0 107.7 110.7 

 II r132.9 154.5 r116.2 r147.1 r114.8 110.7 110.4 110.6 113.6 110.9 

 III r135.2 157.1 r116.2 r148.9 r115.6 110.1 110.8 110.3 119.8 111.1 

 IV r136.1 158.9 r116.8 r149.8 r116.1 110.1 110.7 110.2 124.6 111.5 

 ANNUAL r133.7 155.7 r116.5 r147.6 r114.9 110.4 110.8 110.5 116.5 111.0 

 2004 I r136.4 160.3 r117.6 r150.3 r115.4 110.2 111.2 110.5 130.0 112.2 

 II r137.3 161.7 r117.7 r151.8 r115.3 110.6 111.2 110.7 138.3 113.2 

 III r139.8 165.4 r118.3 r154.2 r116.6 110.2 110.0 110.2 139.4 112.8 

 IV r142.7 169.4 r118.7 r158.0 r118.4 110.7 108.5 110.1 142.7 113.1 

 ANNUAL r139.1 164.2 r118.1 r153.6 r116.4 110.4 110.2 110.4 137.7 112.8 

 2005 I r143.7 170.8 r118.9 r160.3 r119.5 111.6 107.9 110.6 145.2 113.7 

 II r145.3 173.8 r119.6 r160.8 r118.6 110.6 107.0 109.7 159.1 114.1 

 III r146.8 r175.9 r119.9 r163.2 r118.9 r111.2 r109.2 r110.7 r155.5 114.7 

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

 Percent change from previous quarter at annual rate(5) 

 2003 I r1.4 -1.6 r-2.9 r4.1 r-0.1 2.6 6.5 3.7 -11.8 2.2 

 II 7.4 5.6 -1.7 6.9 r6.5 -0.5 -3.2 -1.2 23.6 0.8 

 III r7.3 7.1 r-0.2 r5.1 2.9 -2.1 1.2 -1.2 23.7 0.9 

 IV 2.5 4.7 2.1 2.4 1.5 -0.1 -0.4 -0.2 17.0 1.4 

 ANNUAL r4.3 2.8 -1.4 r4.0 1.6 -0.3 0.0 -0.2 18.9 1.3 

 2004 I r0.8 3.6 r2.7 r1.4 r-2.4 0.6 2.0 0.9 18.4 2.6 

 II r2.9 3.5 r0.6 r4.1 r-0.3 1.2 0.2 0.9 28.0 3.5 

 III r7.4 9.6 r2.0 r6.2 r4.5 -1.1 -4.4 -2.0 3.3 -1.4 

 IV r8.5 10.1 r1.5 r10.4 r6.6 1.8 -5.3 -0.1 9.8 0.9 

 ANNUAL 4.0 5.5 1.4 r4.1 1.3 0.0 -0.5 -0.1 18.1 1.6 

 2005 I 2.8 3.3 r0.4 r6.0 r3.6 3.1 -2.5 1.6 7.1 2.2 

 II r4.6 7.1 r2.4 r1.1 r-3.0 -3.4 -3.1 -3.3 44.3 1.4 

 III r4.1 r5.1 r1.0 r6.3 r1.1 r2.1 r8.2 r3.7 r-8.8 2.1 

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

 Percent change from corresponding quarter of previous year 

 2003 I 3.6 2.1 -1.5 3.2 0.3 -0.4 -1.5 -0.7 25.5 1.2 

 II 3.9 2.1 -1.8 r3.7 1.4 -0.3 -0.2 -0.3 20.2 1.3 

 III 4.8 3.2 -1.5 4.3 2.1 -0.5 0.7 -0.2 19.5 1.4 

 IV 4.6 3.9 -0.7 4.6 r2.7 0.0 0.9 0.2 12.1 1.3 

 ANNUAL r4.3 2.8 -1.4 r4.0 1.6 -0.3 0.0 -0.2 18.9 1.3 

 2004 I 4.5 5.2 0.7 r3.9 2.1 -0.5 -0.1 -0.4 20.7 1.4 

 II r3.4 4.7 1.3 r3.3 r0.4 -0.1 0.7 0.1 21.7 2.1 

 III r3.4 5.3 r1.8 3.5 r0.8 0.1 -0.7 -0.1 16.3 1.5 

 IV 4.8 6.6 1.7 5.5 2.0 0.6 -1.9 -0.1 14.5 1.4 

 ANNUAL 4.0 5.5 1.4 r4.1 1.3 0.0 -0.5 -0.1 18.1 1.6 

 2005 I r5.4 6.5 r1.1 r6.7 r3.6 1.2 -3.0 0.1 11.7 1.3 

 II 5.8 7.5 1.6 5.9 r2.9 0.1 -3.8 -1.0 15.1 0.8 

 III r5.0 r6.4 1.3 r5.9 r2.0 r0.9 r-0.8 0.4 r11.5 1.7 

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

 See footnotes following Table 6. March 7, 2006 

 r=revised Source: Bureau of Labor Statistics 
17 

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 –1.4 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 2005. 

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 1978-2004 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 from the original data rather 

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

(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. 
18 

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 

 2000 I r114.0 138.6 r121.5 r132.4 r111.4 r116.1 r105.3 112.1 

 II r116.2 141.1 r121.4 r133.0 r111.0 r114.4 r109.5 112.6 

 III r115.9 140.8 r121.5 r135.5 r112.1 r116.9 r106.3 112.9 

 IV r117.2 141.5 r120.8 r136.4 r112.1 r116.4 r108.1 113.3 

 ANNUAL r115.9 140.5 r121.2 r134.4 r111.8 r116.0 r107.3 112.7 

 2001 I r117.0 141.1 r120.6 r138.7 r112.9 r118.6 r106.5 114.1 

 II r118.5 141.4 r119.3 r139.7 r112.8 r117.8 r110.0 114.9 

 III r119.0 140.3 r117.9 r140.4 r113.2 r118.0 r110.5 115.2 

 IV r120.8 141.0 r116.6 r141.4 r114.1 r117.0 r113.1 115.6 

 ANNUAL r118.8 141.0 r118.6 r140.0 r113.3 r117.8 r110.0 114.9 

 2002 I r122.5 141.9 r115.8 r143.3 r115.3 r117.0 r113.2 115.6 

 II r123.1 142.6 r115.9 r145.0 r115.7 r117.8 r112.7 115.9 

 III r124.4 143.8 r115.6 r145.6 r115.6 r117.0 r114.8 116.2 

 IV r124.5 144.0 r115.7 r145.7 r115.0 r117.1 r116.1 116.7 

 ANNUAL r123.6 143.1 r115.7 r144.9 r115.4 r117.2 r114.2 116.1 

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

 Percent change from previous quarter at annual rate(5) 

 2000 I r-1.6 0.3 r1.9 r14.4 r10.2 16.2 r-16.1 3.4 

 II 7.9 7.5 -0.4 1.8 r-1.4 r-5.7 r16.9 1.8 

 III -1.0 -0.8 r0.3 r7.9 4.0 r9.0 r-11.2 1.3 

 IV r4.3 2.0 -2.2 2.8 -0.1 -1.5 6.8 1.4 

 ANNUAL 2.8 3.9 1.1 7.0 3.5 4.0 -1.9 1.8 

 2001 I r-0.7 -1.1 r-0.5 r6.8 r2.9 r7.5 r-5.7 2.7 

 II r5.4 0.8 -4.4 r2.8 r-0.3 r-2.5 r13.8 3.0 

 III r1.6 -3.1 r-4.6 r2.1 r1.3 r0.5 1.8 1.0 

 IV r6.3 1.8 r-4.3 2.8 3.4 r-3.3 r10.0 1.3 

 ANNUAL 2.5 0.3 r-2.1 4.2 r1.3 1.6 2.6 2.0 

 2002 I r5.6 2.6 r-2.8 r5.7 4.1 r0.1 r0.3 0.2 

 II r1.9 2.1 r0.2 r4.7 r1.4 r2.7 r-1.9 1.0 

 III r4.5 3.6 r-0.9 r1.8 r-0.3 -2.6 r7.8 1.0 

 IV r0.0 0.5 r0.4 r0.2 -1.9 r0.1 r4.5 1.7 

 ANNUAL 4.0 1.5 -2.4 r3.5 r1.9 -0.5 3.8 1.0 

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

 Percent change from corresponding quarter of previous year 

 2000 I 2.0 4.5 2.4 r6.6 3.2 4.4 -3.2 1.6 

 II 3.8 5.4 1.5 6.7 3.3 2.8 r0.4 1.9 

 III 2.9 3.8 r0.8 r7.9 r4.3 4.8 -3.1 1.9 

 IV 2.3 2.2 -0.1 r6.6 r3.1 4.1 r-1.8 2.0 

 ANNUAL 2.8 3.9 1.1 7.0 3.5 4.0 -1.9 1.8 

 2001 I 2.6 1.8 r-0.7 4.8 1.3 2.1 r1.1 1.8 

 II r2.0 0.2 r-1.7 r5.0 1.6 3.0 r0.4 2.1 

 III 2.7 -0.4 -2.9 3.6 0.9 0.9 3.9 2.0 

 IV r3.1 -0.4 r-3.4 3.6 1.8 r0.5 r4.7 2.0 

 ANNUAL 2.5 0.3 r-2.1 4.2 r1.3 1.6 2.6 2.0 

 2002 I 4.7 0.5 -4.0 3.3 2.1 -1.3 6.3 1.3 

 II r3.8 0.8 r-2.9 r3.8 r2.5 0.0 2.5 0.9 

 III 4.6 2.5 -2.0 3.7 2.1 -0.8 r3.9 0.9 

 IV 3.0 2.2 -0.8 3.0 0.8 0.1 2.6 1.0 

 ANNUAL 4.0 1.5 -2.4 r3.5 r1.9 -0.5 3.8 1.0 

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

 See footnotes following Table 6. March 7, 2006 

 r=revised Source: Bureau of Labor Statistics 
19 

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 

 2000 I r113.8 138.8 r122.1 r132.1 r111.1 r116.1 r106.7 112.6 

 II r115.8 141.4 r122.1 r132.4 r110.6 r114.4 r111.0 113.1 

 III r115.5 141.1 r122.1 r135.0 r111.7 r116.9 r107.8 113.5 

 IV r116.6 141.8 r121.6 r135.7 r111.5 r116.4 r109.6 113.9 

 ANNUAL r115.5 140.8 r121.9 r133.9 r111.3 r115.9 r108.8 113.3 

 2001 I r116.4 141.4 r121.5 r138.0 r112.3 r118.5 r108.0 114.6 

 II r118.0 141.9 r120.2 r138.8 r112.1 r117.6 r111.7 115.4 

 III r118.5 140.8 r118.8 r139.5 r112.4 r117.7 r112.1 115.6 

 IV r120.3 141.2 r117.4 r140.6 r113.4 r116.8 r114.7 116.0 

 ANNUAL r118.3 141.3 r119.5 r139.2 r112.6 r117.6 r111.6 115.4 

 2002 I r122.3 142.5 r116.5 r142.7 r114.7 r116.6 r115.0 116.0 

 II r122.6 143.0 r116.6 r144.2 r115.0 r117.6 r114.8 116.6 

 III r123.8 144.1 r116.4 r144.8 r114.9 r117.0 r116.7 116.9 

 IV r123.8 144.1 r116.4 r144.9 r114.4 r117.1 r117.8 117.3 

 ANNUAL r123.1 143.4 r116.5 r144.2 r114.8 r117.1 r116.1 116.7 

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

 Percent change from previous quarter at annual rate(5) 

 2000 I r-1.8 -0.1 r1.7 r14.8 r10.5 16.9 -17.2 3.3 

 II r7.4 7.5 r0.1 1.1 -2.0 r-5.9 r17.3 1.8 

 III r-1.0 -0.8 r0.1 8.0 4.1 r9.1 r-11.1 1.4 

 IV r3.9 2.2 r-1.6 2.3 -0.6 -1.6 6.9 1.3 

 ANNUAL r2.8 3.8 1.1 r7.1 3.6 4.2 -2.0 1.9 

 2001 I r-0.6 -1.1 r-0.6 r6.7 2.8 r7.3 r-5.7 2.5 

 II 5.6 1.2 r-4.1 r2.3 r-0.8 r-3.1 r14.4 2.7 

 III r1.7 -2.9 r-4.5 r2.1 r1.3 0.4 1.3 0.7 

 IV r6.2 1.2 r-4.7 r3.1 r3.7 r-2.9 r9.8 1.5 

 ANNUAL r2.4 0.4 -2.0 r3.9 1.1 1.4 r2.6 1.9 

 2002 I r6.8 3.5 r-3.1 6.1 r4.6 r-0.7 r1.1 0.0 

 II r0.9 1.4 r0.5 r4.4 r1.1 r3.5 r-0.7 2.0 

 III r4.0 3.1 r-0.8 r1.7 r-0.4 -2.2 r6.6 0.9 

 IV r0.1 0.1 r0.1 r0.3 r-1.7 r0.3 r3.8 1.6 

 ANNUAL r4.1 1.5 -2.5 r3.6 r2.0 -0.5 4.0 1.1 

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

 Percent change from corresponding quarter of previous year 

 2000 I r2.1 4.4 r2.2 r6.9 3.5 4.7 -2.9 1.9 

 II r3.8 5.3 1.5 6.8 3.4 2.9 0.3 2.0 

 III 2.8 3.6 0.8 r8.0 r4.4 5.0 -3.2 2.0 

 IV 2.0 2.1 0.1 r6.4 r2.9 r4.3 -2.0 2.0 

 ANNUAL r2.8 3.8 1.1 r7.1 3.6 4.2 -2.0 1.9 

 2001 I 2.4 1.9 -0.5 4.5 1.0 2.0 1.3 1.8 

 II r1.9 0.4 r-1.6 r4.8 r1.3 2.8 r0.6 2.0 

 III 2.6 -0.2 -2.7 3.3 0.6 0.7 r4.0 1.8 

 IV 3.2 -0.4 r-3.5 r3.5 1.7 0.3 4.7 1.9 

 ANNUAL r2.4 0.4 -2.0 r3.9 1.1 1.4 r2.6 1.9 

 2002 I r5.1 0.7 -4.1 3.4 2.2 r-1.6 r6.5 1.2 

 II r3.9 0.8 r-3.0 r3.9 r2.7 r0.1 2.8 1.0 

 III 4.4 2.3 -2.0 3.8 2.2 -0.6 4.1 1.1 

 IV 2.9 2.0 -0.8 3.1 0.9 0.2 r2.7 1.1 

 ANNUAL r4.1 1.5 -2.5 r3.6 r2.0 -0.5 4.0 1.1 

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

 See footnotes following Table 6. March 7, 2006 

 r=revised Source: Bureau of Labor Statistics 
20 

 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 

 2000 I 133.1 138.6 104.1 133.2 112.1 100.1 

 II 134.3 139.9 104.1 132.5 110.7 98.7 

 III 134.1 139.2 103.8 135.9 112.4 101.3 

 IV 135.4 138.1 102.0 136.7 112.3 101.0 

 ANNUAL 134.4 138.9 103.4 134.7 112.0 100.3 

 2001 I r135.2 135.5 r100.3 r138.1 r112.4 r102.1 

 II r136.3 133.6 r98.0 r137.4 r110.9 100.8 

 III r137.0 131.3 r95.8 r137.0 r110.4 100.0 

 IV r140.0 129.5 r92.5 r139.0 r112.2 99.3 

 ANNUAL r137.1 132.5 r96.6 r137.9 r111.5 100.6 

 2002 I r143.3 130.1 r90.8 r144.6 r116.3 r100.9 

 II r145.5 131.6 r90.4 r147.6 r117.7 101.4 

 III r147.4 132.0 r89.5 r149.1 r118.3 r101.1 

 IV 148.5 131.2 88.4 150.2 118.6 101.2 

 ANNUAL r146.2 131.2 r89.8 r147.8 r117.7 101.1 

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

 Percent change from previous quarter at annual rate(5) 

 2000 I 6.5 4.5 -1.9 21.8 17.3 14.3 

 II 3.8 3.8 0.0 -2.1 -5.1 -5.6 

 III -0.6 -2.0 -1.4 10.6 6.6 11.3 

 IV 4.0 -3.0 -6.7 2.4 -0.4 -1.5 

 ANNUAL 4.8 3.1 -1.6 9.2 5.6 4.2 

 2001 I r-0.7 -7.2 r-6.6 r4.1 r0.2 4.8 

 II r3.4 -5.7 r-8.7 r-2.1 r-5.1 -5.3 

 III 2.0 -6.8 -8.6 r-1.0 r-1.8 -2.9 

 IV 9.2 -5.3 -13.3 5.9 6.5 -3.0 

 ANNUAL 2.0 -4.7 -6.5 2.3 -0.5 0.3 

 2002 I r9.7 2.1 r-6.9 r17.1 r15.4 6.7 

 II r6.4 4.6 r-1.7 r8.6 r5.1 2.1 

 III r5.4 1.3 r-3.9 r4.1 r2.0 -1.2 

 IV r2.9 -2.4 r-5.2 r3.1 r1.0 0.2 

 ANNUAL 6.6 -0.9 -7.1 7.3 5.6 0.6 

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

 Percent change from corresponding quarter of previous year 

 2000 I 4.8 4.0 -0.8 9.8 6.4 4.8 

 II 5.3 4.3 -0.9 8.5 5.1 3.1 

 III 5.1 3.3 -1.7 10.0 6.4 4.7 

 IV 3.4 0.8 -2.5 7.8 4.2 4.3 

 ANNUAL 4.8 3.1 -1.6 9.2 5.6 4.2 

 2001 I 1.6 -2.2 -3.7 3.7 r0.2 2.0 

 II 1.5 -4.5 -5.9 3.6 0.2 2.1 

 III 2.1 -5.7 r-7.7 0.8 -1.8 -1.3 

 IV 3.4 -6.3 -9.3 1.7 -0.1 -1.7 

 ANNUAL 2.0 -4.7 -6.5 2.3 -0.5 0.3 

 2002 I 6.0 -4.0 -9.4 4.7 3.5 -1.2 

 II 6.8 -1.5 r-7.7 7.5 r6.1 0.7 

 III 7.6 0.6 -6.6 8.8 7.1 1.1 

 IV r6.0 1.3 r-4.4 8.1 5.7 1.9 

 ANNUAL 6.6 -0.9 -7.1 7.3 5.6 0.6 

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

 See footnotes following Table 6. March 7, 2006 

 r=revised Source: Bureau of Labor Statistics 
21 

 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 

 2000 I 150.0 165.3 110.2 133.4 112.3 88.9 

 II 151.3 167.5 110.7 131.9 110.1 87.1 

 III 151.3 166.8 110.2 135.7 112.3 89.7 

 IV 151.9 165.0 108.6 135.4 111.3 89.2 

 ANNUAL 151.3 166.2 109.8 134.2 111.6 88.7 

 2001 I r151.3 161.2 r106.6 r136.3 r110.9 r90.1 

 II r152.5 158.3 r103.9 r135.8 r109.7 r89.1 

 III r153.5 154.5 r100.7 r135.5 r109.2 r88.3 

 IV r156.4 151.1 r96.6 r137.9 r111.3 88.2 

 ANNUAL r153.3 156.3 r101.9 r136.4 r110.3 88.9 

 2002 I r161.1 152.5 r94.7 r141.9 r114.1 r88.1 

 II r164.4 155.2 r94.4 r145.0 r115.6 88.2 

 III r167.6 156.5 r93.4 r146.0 r115.9 87.1 

 IV r170.6 156.3 r91.7 r147.3 r116.3 86.4 

 ANNUAL r165.9 155.1 r93.5 r145.0 r115.5 r87.4 

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

 Percent change from previous quarter at annual rate(5) 

 2000 I 10.9 9.0 -1.7 25.0 20.3 12.7 

 II 3.5 5.2 1.6 -4.5 -7.5 -7.8 

 III 0.0 -1.6 -1.6 12.1 8.1 12.1 

 IV 1.5 -4.2 -5.6 -0.7 -3.5 -2.2 

 ANNUAL 5.4 4.7 -0.7 9.7 6.1 4.1 

 2001 I r-1.7 -9.0 r-7.4 r2.5 r-1.3 4.2 

 II r3.2 -6.9 r-9.8 r-1.3 r-4.4 r-4.4 

 III r2.6 -9.3 r-11.6 r-0.8 r-1.6 -3.4 

 IV r7.9 -8.5 -15.2 r7.2 r7.8 -0.7 

 ANNUAL 1.3 -5.9 -7.2 1.6 -1.2 0.2 

 2002 I r12.5 3.6 r-7.9 r12.1 r10.5 -0.4 

 II r8.4 7.2 r-1.1 r9.0 r5.5 0.5 

 III r8.1 3.5 r-4.2 r2.9 r0.8 -4.8 

 IV r7.2 -0.5 -7.2 3.7 1.6 -3.3 

 ANNUAL 8.2 -0.8 -8.3 6.4 4.7 -1.7 

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

 Percent change from corresponding quarter of previous year 

 2000 I 6.0 6.2 0.2 11.2 7.7 4.9 

 II 5.6 6.2 0.6 8.9 5.5 3.1 

 III 5.7 4.4 -1.2 10.9 7.2 4.9 

 IV 3.9 2.0 -1.8 7.4 3.8 3.3 

 ANNUAL 5.4 4.7 -0.7 9.7 6.1 4.1 

 2001 I r0.8 -2.5 r-3.3 2.2 r-1.2 1.3 

 II 0.7 -5.4 -6.1 3.0 -0.4 2.2 

 III 1.4 -7.3 r-8.6 -0.1 -2.7 -1.5 

 IV 3.0 -8.4 -11.1 1.8 0.0 -1.1 

 ANNUAL 1.3 -5.9 -7.2 1.6 -1.2 0.2 

 2002 I 6.5 -5.4 -11.2 4.1 2.9 -2.2 

 II r7.8 -2.0 r-9.1 r6.7 r5.4 -1.0 

 III 9.2 1.3 r-7.3 7.7 6.1 -1.4 

 IV 9.0 3.4 -5.1 r6.8 4.5 -2.0 

 ANNUAL 8.2 -0.8 -8.3 6.4 4.7 -1.7 

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

 See footnotes following Table 6. March 7, 2006 

 r=revised Source: Bureau of Labor Statistics 
22 

 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 

 2000 I 116.9 111.1 95.0 130.5 109.8 111.6 

 II 118.2 111.5 94.4 131.4 109.7 111.2 

 III 117.6 110.6 94.1 133.7 110.7 113.8 

 IV 119.7 110.2 92.0 136.6 112.2 114.1 

 ANNUAL 118.3 110.9 93.7 133.2 110.8 112.7 

 2001 I r119.7 108.7 r90.8 r139.2 r113.3 116.3 

 II r120.5 107.5 r89.2 r138.0 r111.5 114.5 

 III r120.5 106.7 r88.5 r137.9 r111.2 r114.5 

 IV r123.5 106.5 r86.2 r139.3 r112.5 r112.8 

 ANNUAL r121.0 107.3 r88.7 r138.6 r112.1 114.6 

 2002 I r125.6 106.8 r85.1 r148.1 r119.1 117.9 

 II r127.1 107.4 r84.5 r150.9 r120.4 r118.7 

 III r127.9 107.1 r83.8 r153.3 r121.6 r119.8 

 IV r126.9 105.9 r83.4 r154.2 r121.8 121.5 

 ANNUAL r126.9 106.8 r84.2 r151.6 r120.7 119.5 

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

 Percent change from previous quarter at annual rate(5) 

 2000 I 0.5 -1.7 -2.2 15.4 11.1 14.8 

 II 4.3 1.4 -2.8 2.7 -0.4 -1.5 

 III -2.0 -3.0 -1.0 7.4 3.5 9.6 

 IV 7.4 -1.7 -8.5 8.9 5.9 1.4 

 ANNUAL 3.9 0.6 -3.2 7.8 4.3 3.8 

 2001 I -0.1 -5.2 r-5.2 r7.9 r3.9 7.9 

 II 2.9 -4.1 -6.8 -3.4 -6.3 -6.1 

 III r-0.1 -3.3 r-3.2 r-0.3 r-1.1 -0.2 

 IV r10.4 -0.6 r-10.0 r4.1 r4.7 -5.7 

 ANNUAL 2.3 -3.2 r-5.4 4.0 1.2 1.7 

 2002 I r6.9 1.3 r-5.3 r27.6 r25.8 19.4 

 II r4.9 2.1 r-2.7 r7.7 r4.3 2.6 

 III r2.5 -1.0 r-3.4 r6.5 r4.3 3.9 

 IV r-3.0 -4.6 r-1.7 r2.5 r0.4 5.6 

 ANNUAL 4.8 -0.5 -5.1 9.4 7.6 4.3 

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

 Percent change from corresponding quarter of previous year 

 2000 I 3.4 0.8 -2.5 6.7 3.4 3.2 

 II 5.0 1.3 -3.5 7.3 3.9 2.2 

 III 4.1 1.4 -2.6 8.2 4.6 3.9 

 IV 2.5 -1.3 -3.7 8.5 4.9 5.9 

 ANNUAL 3.9 0.6 -3.2 7.8 4.3 3.8 

 2001 I 2.3 -2.2 -4.4 6.7 3.2 4.2 

 II 2.0 -3.5 -5.4 5.1 1.6 3.0 

 III r2.5 -3.6 -5.9 3.1 r0.5 0.6 

 IV r3.2 -3.3 -6.3 r2.0 r0.2 -1.2 

 ANNUAL 2.3 -3.2 r-5.4 4.0 1.2 1.7 

 2002 I r4.9 -1.7 r-6.3 6.4 5.1 1.4 

 II r5.5 -0.1 -5.3 9.3 r8.0 3.6 

 III r6.2 0.4 -5.4 11.1 9.4 4.7 

 IV 2.8 -0.6 -3.3 10.7 8.3 7.7 

 ANNUAL 4.8 -0.5 -5.1 9.4 7.6 4.3 

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

 See footnotes following Table 6. March 7, 2006 

 r=revised Source: Bureau of Labor Statistics 
23 

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 

 2000 I r120.5 150.3 r124.7 r129.7 r109.2 107.7 101.9 106.1 114.6 106.9 

 II r121.1 151.1 r124.8 r130.4 r108.9 107.7 103.5 106.6 115.9 107.4 

 III r121.9 152.4 r125.0 r132.9 r109.9 109.0 104.8 107.9 107.4 107.8 

 IV r122.1 152.3 r124.7 r134.3 r110.4 110.0 106.5 109.1 97.0 108.0 

 ANNUAL r121.5 151.5 r124.7 r131.9 r109.7 108.6 104.2 107.4 108.7 107.5 

 2001 I r122.5 151.9 r124.0 r135.4 r110.2 110.5 109.2 110.2 87.4 108.1 

 II r123.4 151.1 r122.4 r136.7 r110.4 110.8 111.6 111.0 86.9 108.9 

 III r123.6 149.4 r120.8 r137.8 r111.1 111.5 114.1 112.2 79.0 109.2 

 IV r124.4 148.2 r119.2 r139.2 r112.4 111.9 115.7 113.0 75.5 109.6 

 ANNUAL r123.5 150.2 r121.6 r137.3 r111.0 111.2 112.6 111.6 82.2 108.9 

 2002 I r125.9 149.3 r118.5 r140.1 r112.6 111.2 113.0 111.7 85.8 109.4 

 II r127.9 151.3 r118.4 r141.9 r113.2 111.0 110.7 110.9 94.5 109.4 

 III r129.1 152.2 r117.9 r142.7 r113.3 110.6 110.0 110.5 100.3 109.5 

 IV r130.1 153.0 r117.6 r143.2 r113.1 110.1 109.6 110.0 111.2 110.1 

 ANNUAL r128.2 151.5 r118.1 r142.0 r113.0 110.7 110.8 110.7 98.0 109.6 

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

 Percent change from previous quarter at annual rate(5) 

 2000 I 7.1 9.5 2.2 15.2 10.9 7.6 1.4 5.9 -25.5 2.3 

 II 2.1 2.3 0.1 2.3 -0.8 0.1 6.6 1.8 4.7 2.1 

 III 2.7 3.4 0.7 7.7 3.8 4.9 5.0 4.9 -26.2 1.5 

 IV 0.7 -0.2 -0.9 4.5 r1.6 3.7 6.7 4.5 -33.4 0.6 

 ANNUAL 3.6 5.2 1.6 6.8 3.3 3.1 3.8 3.3 -15.8 1.2 

 2001 I r1.3 -1.1 -2.4 r3.3 r-0.5 1.9 10.5 4.1 -34.1 0.6 

 II r2.8 -2.2 r-4.8 r3.7 r0.5 0.9 9.2 3.1 -2.5 2.7 

 III r0.8 -4.4 r-5.1 r3.4 r2.6 2.6 8.9 4.3 -31.8 1.3 

 IV 2.5 -3.0 -5.4 4.2 4.8 1.6 5.9 2.8 -16.3 1.4 

 ANNUAL r1.6 -0.9 -2.5 r4.0 1.2 2.4 8.1 3.9 -24.3 1.3 

 2002 I r5.1 2.9 r-2.1 r2.4 r0.9 -2.6 -9.0 -4.4 66.8 -0.8 

 II r6.2 5.6 r-0.6 r5.2 r1.9 -0.9 -7.9 -2.9 46.9 0.1 

 III r3.8 2.3 r-1.4 r2.5 r0.4 -1.2 -2.4 -1.6 27.0 0.5 

 IV 3.2 2.0 r-1.1 r1.2 r-0.8 -1.9 -1.6 -1.8 50.9 1.9 

 ANNUAL r3.9 0.9 r-2.9 3.4 1.8 -0.4 -1.6 -0.7 19.2 0.6 

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

 Percent change from corresponding quarter of previous year 

 2000 I 3.4 6.1 2.7 r5.7 2.5 2.3 2.8 2.4 -14.1 0.6 

 II 3.4 5.5 2.0 6.2 2.8 2.7 3.8 3.0 -13.2 1.1 

 III 4.1 5.6 1.4 7.6 4.0 3.3 3.8 3.5 -14.9 1.5 

 IV 3.1 3.7 0.5 7.3 3.8 4.0 4.9 4.3 -21.3 1.6 

 ANNUAL 3.6 5.2 1.6 6.8 3.3 3.1 3.8 3.3 -15.8 1.2 

 2001 I 1.7 1.1 -0.6 4.4 1.0 2.6 7.2 3.8 -23.7 1.2 

 II 1.9 0.0 -1.9 4.8 r1.3 2.8 7.8 4.1 -25.0 1.3 

 III 1.4 -2.0 -3.3 3.7 1.0 2.3 8.8 4.0 -26.5 1.3 

 IV r1.8 -2.7 r-4.4 3.7 1.8 1.8 8.6 3.6 -22.2 1.5 

 ANNUAL r1.6 -0.9 -2.5 r4.0 1.2 2.4 8.1 3.9 -24.3 1.3 

 2002 I 2.8 -1.7 -4.4 3.4 2.2 0.6 3.5 1.4 -1.9 1.2 

 II r3.6 0.2 r-3.3 r3.8 r2.5 0.2 -0.8 -0.1 8.7 0.5 

 III 4.4 1.9 -2.4 r3.6 r2.0 -0.8 -3.5 -1.5 27.0 0.3 

 IV r4.6 3.2 -1.3 2.8 0.6 -1.7 -5.3 -2.7 47.2 0.4 

 ANNUAL r3.9 0.9 r-2.9 3.4 1.8 -0.4 -1.6 -0.7 19.2 0.6 

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 See footnotes following Table 6. March 7, 2006 
24 

 r=revised Source: Bureau of Labor Statistics