Transmission of material in this release is embargoed until USDL 17-1221 

8:30 a.m. (EDT) Thursday, September 7, 2017 

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

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

PRODUCTIVITY AND COSTS

Second Quarter 2017, Revised

Nonfarm business sector labor productivity increased 1.5 percent during the second quarter of 2017, 

the U.S. Bureau of Labor Statistics reported today, as output increased 4.0 percent and hours worked 

increased 2.5 percent. (All quarterly percent changes in this release are seasonally adjusted annual rates.) 

From the second quarter of 2016 to the second quarter of 2017, productivity increased 1.3 percent, 

reflecting a 2.8-percent increase in output and a 1.5-percent increase in hours worked. (See chart 1 and 

tables A1 and 2.) 

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

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

 

Unit labor costs in the nonfarm business sector increased 0.2 percent in the second quarter of 2017, 

reflecting a 1.8-percent increase in hourly compensation and a 1.5-percent increase in productivity. Unit 

labor costs decreased 0.2 percent over the last four quarters. (See chart 2 and tables A1 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, 2013Q1 – 2017Q2

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2013 2014 2015 2016 2017

From previous quarter, annual rate

From same quarter a year ago

Percent change Percent change

Chart 2. Unit labor costs, nonfarm business, 2013Q1 – 2017Q2

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2013 2014 2015 2016 2017

From previous quarter, annual rate

From same quarter a year ago
-2- 

Manufacturing sector labor productivity increased 2.9 percent in the second quarter of 2017, as 

output increased 2.1 percent and hours worked decreased 0.7 percent. The increase in manufacturing 

output per hour is the largest since the first quarter of 2012, when the measure increased 3.2 percent. 

Productivity increased 3.8 percent in the durable goods manufacturing sector and increased 0.5 percent 

in the nondurable goods sector in the second quarter of 2017. The larger productivity gain in durable 

goods industries was due primarily to a 2.7-percent decline in hours worked, as output increased 1.0 

percent. In contrast, the modest increase in nondurable manufacturing productivity reflected a 2.8-

percent increase in hours worked and a 3.4-percent increase in output. Over the last four quarters, total 

manufacturing sector productivity increased 1.1 percent, as output increased 1.6 percent and hours 

worked increased 0.5 percent. (See tables A1, 3, 4 and 5.) Unit labor costs in manufacturing decreased 

0.4 percent in the second quarter of 2017 and rose 0.1 percent from the same quarter a year ago. 

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

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

the Technical Notes for a more detailed explanation. (See page 6.) 

Preliminary second-quarter 2017 measures of productivity and costs were announced for the 

nonfinancial corporate sector. Productivity increased 4.6 percent in the second quarter of 2017, as 

output increased 7.8 percent, and hours worked increased 3.1 percent; the increase in output was the 

largest since a 9.9-percent gain in the first quarter of 2012. Unit labor costs decreased 2.6 percent, as 

hourly compensation increased 1.9 percent and productivity increased 4.6 percent. (See tables A2

and 6.) 

Revised measures 

The measures released today are based on more recent source data than were available for the 

preliminary report. Table B1 presents previous and revised productivity and related measures for the 

nonfarm business, business, and manufacturing sectors. 

In the second quarter of 2017, nonfarm business productivity was revised up 0.6 percentage point to 

an increase of 1.5 percent. Output was revised up to an increase of 4.0 percent; hours were not revised. 

Unit labor costs increased 0.2 percent rather than increasing 0.6 percent as reported August 9, as a 0.6-

percentage point upward revision to productivity was slightly offset by a 0.2-percentage point 

upward revision to hourly compensation.

In the second quarter of 2017, manufacturing sector productivity was revised up to an increase of 2.9 

percent from a previously-reported increase of 2.5 percent. Unit labor costs decreased 0.4 percent, a 

slightly larger decline than previously reported. Durable goods manufacturing productivity was not 

revised, and nondurable goods manufacturing productivity was revised up to an increase of 0.5 percent. 

Table B2 shows previous and revised productivity and related measures for the nonfarm business, 

business, manufacturing and nonfinancial corporate sectors for the first quarter of 2017. 

In the first quarter of 2017, nonfarm business productivity increased at the same 0.1-percent rate 

reported in the preliminary estimate. Unit labor costs were revised down 0.6 percentage point to an 

increase of 4.8 percent. Manufacturing sector productivity was revised down slightly to an increase of 

0.2 percent. Hourly compensation and unit labor costs had upward revisions of 0.2 percentage point 

and 0.4 percentage point, respectively. 

In the nonfinancial corporate sector, first-quarter 2017 productivity increased at the same 2.0-percent 

rate that was previously reported. Unit labor costs were revised up slightly to an increase of 2.3 percent. 

(See table B2.) 
-3- 

Hourly compensation and related measures, including unit labor costs, in the business and nonfarm 

business sectors were revised back to the first quarter of 2014 to incorporate revised data used in the 

estimation of employee compensation. In both sectors, annual average growth in unit labor costs was 

revised up 0.1 percentage point in 2016, revised down 0.1 percentage point in 2015, and revised up 0.1 

percentage point in 2014. 

Full historical annual and quarterly measures can be found on the productivity and costs home page: 

www.bls.gov/lpc/#data. 

______________ 

Methodology change for manufacturing output

Beginning with the Productivity and Costs news release scheduled for December 6, 2017, BLS plans 

to incorporate source data reflecting a change in methodology for estimating manufacturing output. 

For more information see: www.bls.gov/mfp/sectoraloutputrevisions.htm.

The preliminary Productivity and Costs news release for third-quarter 2017 is scheduled to be 

released on Thursday, November 2, 2017 at 8:30 a.m. (EDT).
-4- 

Table A1. Labor productivity growth and related measures - revised second-quarter 2017

(percent change from previous quarter at annual rate and from same quarter a year ago)

Sector Percent change from:

Labor 

productivity Output

Hours 

worked

Hourly 

compensation

Real hourly 

compensation

Unit labor 

costs

Nonfarm business Previous quarter 1.5 4.0 2.5 1.8 2.1 0.2

A year ago 1.3 2.8 1.5 1.1 -0.8 -0.2

Business Previous quarter 1.3 3.7 2.4 1.8 2.1 0.5

A year ago 1.3 2.6 1.3 1.3 -0.6 0.0

Manufacturing Previous quarter 2.9 2.1 -0.7 2.5 2.8 -0.4

A year ago 1.1 1.6 0.5 1.3 -0.6 0.1

Durable 

manufacturing

Previous quarter 3.8 1.0 -2.7 3.1 3.5 -0.6

A year ago 1.3 1.6 0.3 0.9 -1.0 -0.4

Nondurable 

manufacturing

Previous quarter 0.5 3.4 2.8 1.6 1.9 1.0

A year ago 0.8 1.5 0.8 1.9 0.0 1.1

Table A2. Labor productivity growth and related measures - preliminary second-quarter 2017

(percent change from previous quarter at annual rate and from same quarter a year ago)

Sector Percent change from:

Labor 

productivity Output

Hours 

worked

Hourly 

compensation

Real hourly 

compensation

Unit labor 

costs

Nonfinancial 

corporate

Previous quarter 4.6 7.8 3.1 1.9 2.2 -2.6

A year ago 1.9 3.7 1.8 1.1 -0.8 -0.8

Table B1. Labor productivity growth and related measures - revised and previously published second-quarter 2017

(percent change from previous quarter at annual rate)

Sector

Labor 

productivity Output

Hours 

worked

Hourly 

compensation

Real hourly 

compensation

Unit labor 

costs

Nonfarm business Revised 1.5 4.0 2.5 1.8 2.1 0.2

Previously published 0.9 3.4 2.5 1.6 1.9 0.6

Business Revised 1.3 3.7 2.4 1.8 2.1 0.5

Previously published 0.6 3.1 2.4 1.6 1.9 0.9

Manufacturing Revised 2.9 2.1 -0.7 2.5 2.8 -0.4

Previously published 2.5 1.6 -0.9 2.2 2.5 -0.3

Durable 

manufacturing

Revised 3.8 1.0 -2.7 3.1 3.5 -0.6

Previously published 3.8 0.9 -2.7 3.0 3.3 -0.8

Nondurable 

manufacturing

Revised 0.5 3.4 2.8 1.6 1.9 1.0

Previously published -0.1 2.3 2.4 1.1 1.4 1.2
-5- 

Table B2. Labor productivity growth and related measures - revised and previously published first-quarter 2017

(percent change from previous quarter at annual rate)

Sector

Labor 

productivity Output

Hours 

worked

Hourly 

compensation

Real hourly 

compensation

Unit labor 

costs

Nonfarm business Revised 0.1 1.8 1.6 4.9 1.7 4.8

Previously published 0.1 1.8 1.6 5.5 2.3 5.4

Business Revised -0.8 1.4 2.1 4.3 1.1 5.1

Previously published -0.8 1.4 2.1 4.9 1.7 5.7

Manufacturing Revised 0.2 2.3 2.1 4.4 1.2 4.3

Previously published 0.3 2.4 2.1 4.2 1.0 3.9

Durable 

manufacturing

Revised -1.0 2.6 3.6 2.5 -0.6 3.6

Previously published -0.9 2.7 3.6 2.3 -0.9 3.2

Nondurable 

manufacturing

Revised 2.5 2.0 -0.5 8.0 4.7 5.3

Previously published 2.6 2.1 -0.5 7.8 4.5 5.1

Nonfinancial 

corporate

Revised 2.0 4.1 2.0 4.3 1.1 2.3

Previously published 2.0 4.0 2.0 4.2 1.0 2.2
-6- 

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 worked using data from the National Compensation Survey (NCS) 

for 1996 forward and data from the BLS Hours at Work survey, conducted for this purpose, prior to 1990. 

Between 1990 and 1995, weekly paid hours are adjusted to hours at work using a combination of NCS and 

Hours at Work survey data. 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 appropriate 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 hours. 

Business output accounted for about 75 percent of the value of GDP in 2016. Nonfarm business, which 

excludes farming, also accounted for about 75 percent of GDP in 2016. 

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 50 percent of the value of 

GDP in 2016. 

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. 
-7- 

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 employees in domestic industries 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 productivity@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. 
-8- 

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

seasonally adjusted.

 Real

 Hourly hourly Unit Implicit

Year Labor compen- compen- Unit nonlabor price

and produc- Hours sation sation labor payments deflator

quarter tivity Output worked (1) (2) costs (3) (4)

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

 Percent change from previous quarter at annual rate (5)

2017 II 1.3 r 3.7 r 2.4 1.8 r 2.1 r 0.5 r 0.7 r 0.6 

 I -0.8 1.4 2.1 4.3 r 1.1 r 5.1 r -3.0 r 1.5 

2016 ANNUAL 0.0 1.6 1.6 1.0 r -0.2 r 1.0 r 1.0 r 1.0 

2016 IV 2.0 2.2 0.2 -3.7 r -6.5 r -5.5 r 13.3 r 2.2 

 III 2.7 3.3 0.6 2.8 r 1.0 r 0.1 r 2.5 r 1.1 

 II 0.6 2.6 2.0 4.4 r 2.0 r 3.7 r 0.0 r 2.1 

 I -1.1 0.4 1.5 -3.8 r -3.9 r -2.8 r 5.2 r 0.5 

2015 ANNUAL 1.2 3.5 2.3 2.9 r 2.8 1.7 r -0.8 0.6 

2015 IV -2.7 0.2 3.0 4.3 3.9 7.2 -9.3 -0.2 

 III 1.6 1.6 0.0 1.2 r -0.3 r -0.4 r 3.1 r 1.1 

 II 1.6 3.3 1.7 3.9 r 1.5 r 2.3 r 1.6 r 2.0 

 I 2.4 4.0 1.5 3.0 r 5.6 r 0.5 r -2.4 r -0.7 

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

 Percent change from corresponding quarter of previous year

2017 II 1.3 r 2.6 r 1.3 1.3 r -0.6 r 0.0 3.2 1.3 r

 I 1.1 2.4 1.2 1.9 r -0.7 r 0.8 3.0 r 1.7 

2016 ANNUAL 0.0 1.6 1.6 1.0 r -0.2 r 1.0 r 1.0 r 1.0 

2016 IV 1.0 2.1 1.1 -0.1 r -1.9 r -1.2 r 5.1 r 1.5 

 III -0.1 1.6 1.8 1.9 r 0.7 r 2.0 r -0.6 r 0.9 

 II -0.4 1.2 1.6 1.5 r 0.4 r 1.9 r -0.4 r 0.9 

 I -0.2 1.4 1.5 1.3 r 0.2 r 1.5 r 0.0 r 0.8 

2015 ANNUAL 1.2 3.5 2.3 2.9 r 2.8 1.7 r -0.8 0.6 

2015 IV 0.7 2.3 1.6 3.1 2.6 2.4 -1.9 0.5 

 III 0.9 2.8 1.9 3.2 3.0 r 2.3 -1.6 0.6 

 II 1.4 4.1 2.7 3.5 3.5 2.1 -1.1 0.7 

 I 1.6 4.8 3.1 1.9 1.9 r 0.3 1.5 0.8 

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

 Indexes 2009=100

2017 II 107.8 r 122.9 r 114.0 r 117.3 r 103.2 r 108.8 r 115.8 r 111.7 r

 I 107.5 121.8 113.3 116.8 r 102.7 r 108.7 r 115.6 r 111.6 

2016 ANNUAL 106.9 120.3 112.5 115.7 r 103.4 r 108.2 r 113.4 r 110.4 

2016 IV 107.7 121.4 112.7 115.6 r 102.4 r 107.3 r 116.5 r 111.2 

 III 107.2 120.8 112.7 116.7 r 104.1 r 108.9 r 112.9 r 110.5 

 II 106.5 119.8 112.5 115.9 r 103.9 r 108.8 r 112.2 r 110.2 

 I 106.3 119.0 112.0 114.6 r 103.3 r 107.8 r 112.2 r 109.7 

2015 ANNUAL 106.9 118.4 110.7 114.5 r 103.7 r 107.1 r 112.3 r 109.3 

2015 IV 106.6 118.9 111.5 115.8 r 104.4 r 108.6 r 110.8 r 109.5 

 III 107.3 118.8 110.7 114.6 r 103.4 r 106.7 r 113.5 r 109.6 

 II 106.9 118.4 110.7 114.2 r 103.5 r 106.9 r 112.6 r 109.3 

 I 106.5 117.4 110.3 113.1 r 103.1 r 106.3 r 112.2 r 108.7 

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

See footnotes following Table 6. September 7, 2017

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

Table 2. Nonfarm business sector: Labor productivity, hourly compensation, unit labor costs, and

prices, seasonally adjusted.

 Real

 Hourly hourly Unit Implicit

Year Labor compen- compen- Unit nonlabor price

and produc- Hours sation sation labor payments deflator

quarter tivity Output worked (1) (2) costs (3) (4)

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

 Percent change from previous quarter at annual rate (5)

2017 II 1.5 r 4.0 r 2.5 1.8 r 2.1 r 0.2 r 1.0 r 0.6 

 I 0.1 1.8 1.6 4.9 r 1.7 r 4.8 r -3.9 r 0.9 

2016 ANNUAL -0.1 1.5 1.6 1.0 r -0.2 r 1.1 r 1.4 r 1.2 

2016 IV 1.3 2.2 1.0 -4.5 r -7.3 r -5.7 r 13.9 r 2.3 

 III 2.5 3.3 0.8 2.5 r 0.7 r 0.1 r 3.1 r 1.3 

 II 0.8 2.5 1.7 4.8 r 2.4 r 3.9 r 0.0 r 2.2 

 I -1.2 0.2 1.4 -3.8 r -3.9 r -2.7 r 5.8 r 0.9 

2015 ANNUAL 1.3 3.4 2.1 3.1 r 3.0 1.8 r -0.3 r 0.9 

2015 IV -2.6 0.3 2.9 4.5 4.1 7.2 -8.8 0.1 

 III 1.3 1.3 0.0 1.1 r -0.4 r -0.2 r 3.0 r 1.2 

 II 1.3 3.3 2.0 3.6 r 1.2 r 2.3 r 1.5 r 1.9 

 I 2.7 4.0 1.2 3.3 r 6.0 r 0.6 r -0.9 r 0.0 

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

 Percent change from corresponding quarter of previous year

2017 II 1.3 r 2.8 r 1.5 1.1 r -0.8 r -0.2 3.3 1.3 

 I 1.2 2.5 1.3 1.9 -0.7 0.7 3.1 r 1.7 

2016 ANNUAL -0.1 1.5 1.6 1.0 r -0.2 r 1.1 r 1.4 r 1.2 

2016 IV 0.8 2.1 1.2 -0.3 r -2.1 r -1.2 r 5.6 r 1.7 

 III -0.1 1.6 1.7 1.9 r 0.8 r 2.1 r -0.1 r 1.1 

 II -0.4 1.1 1.5 1.6 r 0.5 r 2.0 -0.2 r 1.1 

 I -0.3 1.3 1.6 1.3 r 0.2 r 1.6 r 0.2 r 1.0 

2015 ANNUAL 1.3 3.4 2.1 3.1 r 3.0 1.8 r -0.3 r 0.9 

2015 IV 0.7 2.2 1.5 3.1 2.7 2.4 -1.4 0.8 

 III 0.8 2.7 1.9 3.3 3.1 r 2.4 -1.3 0.8 

 II 1.6 4.1 2.5 3.8 3.8 2.2 -0.5 1.0 

 I 1.9 4.7 2.8 2.3 2.3 r 0.4 2.0 r 1.1 

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

 Indexes 2009=100

2017 II 108.1 r 123.2 r 114.0 r 117.6 r 103.4 r 108.8 r 115.8 r 111.7 r

 I 107.7 122.0 113.3 117.1 r 102.9 r 108.7 r 115.5 r 111.5 

2016 ANNUAL 107.0 120.2 112.4 116.0 r 103.7 r 108.4 r 113.4 r 110.5 

2016 IV 107.6 121.4 112.8 115.7 r 102.4 r 107.5 r 116.6 r 111.3 

 III 107.3 120.8 112.5 117.0 r 104.4 r 109.1 r 112.9 r 110.7 

 II 106.6 119.8 112.3 116.3 r 104.2 r 109.1 r 112.0 r 110.3 

 I 106.4 119.0 111.9 114.9 r 103.6 r 108.0 r 112.0 r 109.7 

2015 ANNUAL 107.1 118.5 110.7 114.8 r 103.9 r 107.2 r 111.8 r 109.1 

2015 IV 106.7 119.0 111.5 116.1 r 104.6 r 108.7 r 110.4 r 109.5 

 III 107.4 118.9 110.7 114.8 r 103.6 r 106.9 r 113.0 r 109.4 

 II 107.1 118.5 110.7 114.5 r 103.7 r 106.9 r 112.2 r 109.1 

 I 106.7 117.6 110.1 113.5 r 103.4 r 106.3 r 111.8 r 108.6 

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

See footnotes following Table 6. September 7, 2017

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

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

seasonally adjusted.

 Real

Year Labor Hourly hourly Unit

and produc- Hours compensa- compensa- labor

quarter tivity Output worked tion (1) tion (2) costs

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

 Percent change from previous quarter at annual rate (5)

2017 II 2.9 r 2.1 r -0.7 r 2.5 r 2.8 r -0.4 r

 I 0.2 r 2.3 r 2.1 4.4 r 1.2 r 4.3 r

2016 ANNUAL 0.2 0.2 0.0 0.7 -0.5 0.6 

2016 IV 2.0 1.8 -0.2 -4.2 -7.1 -6.1 

 III -0.5 0.2 0.7 2.6 0.8 3.1 

 II -0.8 -0.9 -0.1 7.1 4.7 8.0 

 I 1.3 1.0 -0.3 -10.1 -10.2 -11.3 

2015 ANNUAL -0.6 0.3 1.0 2.5 2.4 3.1 

2015 IV -1.6 -0.6 1.0 9.1 8.7 10.9 

 III 2.3 1.1 -1.2 1.8 0.3 -0.5 

 II -0.4 -0.3 0.0 3.5 1.1 3.9 

 I -1.9 -2.3 -0.4 0.0 2.6 1.9 

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

 Percent change from corresponding quarter of previous year

2017 II 1.1 r 1.6 r 0.5 r 1.3 r -0.6 r 0.1 

 I 0.2 0.8 r 0.6 2.4 r -0.2 2.2 r

2016 ANNUAL 0.2 0.2 0.0 0.7 -0.5 0.6 

2016 IV 0.5 0.5 0.0 -1.4 -3.1 -1.9 

 III -0.4 -0.1 0.3 1.9 0.7 2.3 

 II 0.3 0.1 -0.2 1.7 0.6 1.4 

 I 0.4 0.3 -0.1 0.8 -0.3 0.4 

2015 ANNUAL -0.6 0.3 1.0 2.5 2.4 3.1 

2015 IV -0.4 -0.5 -0.2 3.5 3.1 3.9 

 III -0.5 0.1 0.6 2.6 2.4 3.1 

 II -1.0 0.2 1.3 2.7 2.7 3.8 

 I -0.6 1.6 2.2 1.0 1.1 1.7 

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

 Indexes 2009=100

2017 II 119.9 r 129.8 r 108.3 r 113.3 r 99.7 r 94.5 r

 I 119.1 r 129.2 r 108.5 112.7 r 99.0 r 94.6 r

2016 ANNUAL 118.7 128.1 107.8 111.5 99.7 93.9 

2016 IV 119.0 128.4 107.9 111.4 98.7 93.6 

 III 118.5 127.9 107.9 112.6 100.5 95.1 

 II 118.6 127.8 107.8 111.9 100.3 94.4 

 I 118.9 128.1 107.8 110.0 99.2 92.6 

2015 ANNUAL 118.5 127.8 107.8 110.7 100.2 93.4 

2015 IV 118.5 127.8 107.9 113.0 101.9 95.4 

 III 118.9 128.0 107.6 110.6 99.8 92.9 

 II 118.3 127.6 107.9 110.1 99.7 93.1 

 I 118.4 127.7 107.9 109.1 99.4 92.2 

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

See footnotes following Table 6. September 7, 2017

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

Table 4. Durable manufacturing sector: Labor productivity, hourly compensation, and unit labor

costs, seasonally adjusted.

 Real

Year Labor Hourly hourly Unit

and produc- Hours compensa- compensa- labor

quarter tivity Output worked tion (1) tion (2) costs

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

 Percent change from previous quarter at annual rate (5)

2017 II 3.8 1.0 r -2.7 3.1 r 3.5 r -0.6 r 

 I -1.0 r 2.6 r 3.6 2.5 r -0.6 r 3.6 r

2016 ANNUAL 0.1 -0.2 -0.3 1.0 -0.3 0.9 

2016 IV 1.8 2.0 0.2 -4.3 -7.1 -6.0 

 III 0.7 1.0 0.3 2.5 0.7 1.7 

 II 1.9 0.2 -1.6 9.5 7.0 7.5 

 I -0.6 0.1 0.7 -11.4 -11.5 -10.9 

2015 ANNUAL -1.3 -0.8 0.6 3.0 2.9 4.4 

2015 IV -3.1 -2.5 0.7 10.8 10.4 14.4 

 III 2.6 0.5 -2.0 1.4 -0.2 -1.2 

 II -0.8 -1.3 -0.5 2.8 0.5 3.6 

 I -3.9 -4.9 -1.1 2.0 4.6 6.1 

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

 Percent change from corresponding quarter of previous year

2017 II 1.3 1.6 r 0.3 0.9 r -1.0 r -0.4 r

 I 0.8 r 1.4 r 0.6 2.4 -0.1 r 1.6 r

2016 ANNUAL 0.1 -0.2 -0.3 1.0 -0.3 0.9 

2016 IV 1.0 0.8 -0.1 -1.2 -3.0 -2.2 

 III -0.3 -0.3 0.0 2.4 1.3 2.8 

 II 0.2 -0.4 -0.6 2.2 1.1 2.0 

 I -0.5 -0.8 -0.3 0.6 -0.5 1.1 

2015 ANNUAL -1.3 -0.8 0.6 3.0 2.9 4.4 

2015 IV -1.3 -2.0 -0.7 4.2 3.7 5.6 

 III -0.9 -1.2 -0.3 3.0 2.9 4.0 

 II -1.7 -0.8 0.9 3.3 3.3 5.1 

 I -1.3 1.1 2.4 1.6 1.7 2.9 

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

 Indexes 2009=100

2017 II 120.9 r 133.8 r 110.6 r 112.5 r 98.9 r 93.0 r

 I 119.8 r 133.4 r 111.4 111.6 r 98.1 r 93.2 r

2016 ANNUAL 119.5 131.9 110.4 110.9 99.1 92.8 

2016 IV 120.1 132.6 110.4 111.0 98.3 92.4 

 III 119.6 131.9 110.3 112.2 100.1 93.8 

 II 119.4 131.6 110.2 111.5 99.9 93.4 

 I 118.8 131.5 110.7 109.0 98.2 91.7 

2015 ANNUAL 119.4 132.1 110.7 109.8 99.4 92.0 

2015 IV 119.0 131.5 110.5 112.3 101.3 94.4 

 III 119.9 132.3 110.3 109.5 98.8 91.3 

 II 119.2 132.2 110.9 109.1 98.9 91.6 

 I 119.4 132.6 111.0 108.4 98.7 90.7 

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

See footnotes following Table 6. September 7, 2017

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

Table 5. Nondurable manufacturing sector: Labor productivity, hourly compensation, and unit labor

costs, seasonally adjusted.

 Real

Year Labor Hourly hourly Unit

and produc- Hours compensa- compensa- labor

quarter tivity Output worked tion (1) tion (2) costs

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

 Percent change from previous quarter at annual rate (5)

2017 II 0.5 r 3.4 r 2.8 r 1.6 r 1.9 r 1.0 r

 I 2.5 r 2.0 r -0.5 8.0 r 4.7 r 5.3 r

2016 ANNUAL 0.2 0.6 0.5 0.4 -0.9 0.2 

2016 IV 2.3 1.5 -0.8 -4.3 -7.2 -6.5 

 III -2.2 -0.8 1.5 2.8 1.0 5.2 

 II -4.5 -2.2 2.5 3.0 0.7 7.9 

 I 4.0 2.1 -1.8 -7.7 -7.8 -11.3 

2015 ANNUAL -0.1 1.6 1.7 1.5 1.4 1.6 

2015 IV 0.0 1.5 1.4 6.1 5.7 6.0 

 III 1.6 1.8 0.2 2.8 1.2 1.2 

 II -0.2 0.7 1.0 4.8 2.4 5.0 

 I 0.2 0.9 0.7 -3.5 -1.0 -3.7 

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

 Percent change from corresponding quarter of previous year

2017 II 0.8 r 1.5 r 0.8 r 1.9 r 0.0 r 1.1 

 I -0.5 0.1 0.7 2.3 r -0.3 2.8 

2016 ANNUAL 0.2 0.6 0.5 0.4 -0.9 0.2 

2016 IV -0.2 0.2 0.3 -1.7 -3.4 -1.5 

 III -0.7 0.1 0.9 0.9 -0.2 1.6 

 II 0.2 0.8 0.6 0.9 -0.2 0.7 

 I 1.3 1.5 0.2 1.3 0.2 0.0 

2015 ANNUAL -0.1 1.6 1.7 1.5 1.4 1.6 

2015 IV 0.4 1.2 0.8 2.5 2.0 2.1 

 III -0.6 1.6 2.2 1.9 1.8 2.5 

 II -0.4 1.5 1.9 1.7 1.7 2.1 

 I 0.3 2.1 1.9 -0.2 -0.1 -0.4 

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

 Indexes 2009=100 

2017 II 113.5 r 118.7 r 104.5 r 114.4 r 100.6 r 100.8 r

 I 113.4 r 117.7 r 103.8 113.9 r 100.1 r 100.5 r

2016 ANNUAL 112.8 117.0 103.7 112.1 100.2 99.4 

2016 IV 112.7 117.1 103.9 111.8 99.0 99.2 

 III 112.0 116.6 104.1 113.0 100.8 100.9 

 II 112.6 116.9 103.8 112.2 100.6 99.6 

 I 114.0 117.5 103.1 111.4 100.4 97.7 

2015 ANNUAL 112.6 116.3 103.2 111.7 101.1 99.2 

2015 IV 112.8 116.9 103.6 113.6 102.5 100.7 

 III 112.8 116.5 103.2 112.0 101.1 99.2 

 II 112.4 116.0 103.2 111.2 100.8 99.0 

 I 112.5 115.8 102.9 109.9 100.2 97.7 

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

See footnotes following Table 6. September 7, 2017

r=revised Source: Bureau of Labor Statistics
-13- 

Table 6. Nonfinancial corporate sector: Labor productivity, hourly compensation, unit labor costs,

unit profits, and prices, seasonally adjusted.

 Real

 Hourly hourly Unit Total Implicit

Year Labor compen- compen- Unit nonlabor unit Unit price

and produc- Hours sation sation labor costs costs profits deflator

quarter tivity Output worked (1) (2) costs (6) (7) (8) (4)

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

 Percent change from previous quarter at annual rate (5)

2017 II 4.6 7.8 3.1 1.9 2.2 -2.6 -2.9 -2.7 14.3 -0.6 

 I 2.0 4.1 r 2.0 4.3 r 1.1 r 2.3 r -1.0 r 1.2 -2.7 r 0.7 

2016 ANNUAL -0.1 1.4 1.5 1.1 -0.2 1.2 -0.5 0.7 -5.3 -0.2 

2016 IV -4.5 -3.9 0.6 -3.6 -6.5 0.9 9.2 3.5 -2.8 2.7 

 III 5.9 7.4 1.5 1.9 0.1 -3.7 -4.5 -4.0 7.3 -2.6 

 II -2.0 -0.6 1.4 3.7 1.4 5.9 1.7 4.5 -28.8 -0.8 

 I 0.5 1.1 0.6 -1.8 -1.9 -2.3 -13.0 -5.9 47.7 0.0 

2015 ANNUAL 1.4 3.6 2.2 3.0 2.9 1.6 0.4 1.2 -5.1 0.3 

2015 IV -1.4 1.5 3.0 3.4 3.0 4.9 13.8 7.7 -41.5 -0.9 

 III 0.7 2.5 1.8 0.5 -1.0 -0.2 -0.1 -0.2 5.3 0.6 

 II -2.0 -0.9 1.1 2.7 0.4 4.8 4.0 4.5 -1.3 3.7 

 I 3.3 4.6 1.3 7.1 9.9 3.7 -2.2 1.8 -23.7 -2.5 

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

 Percent change from corresponding quarter of previous year

2017 II 1.9 3.7 1.8 1.1 -0.8 -0.8 0.1 -0.5 3.8 0.0 

 I 0.3 1.7 r 1.4 1.5 -1.0 1.3 1.2 1.3 -7.8 0.0 

2016 ANNUAL -0.1 1.4 1.5 1.1 -0.2 1.2 -0.5 0.7 -5.3 -0.2 

2016 IV -0.1 0.9 1.0 0.0 -1.8 0.1 -2.0 -0.6 2.3 -0.2 

 III 0.7 2.3 1.6 1.8 0.6 1.1 -1.0 0.4 -9.9 -1.1 

 II -0.6 1.1 1.7 1.4 0.3 2.0 0.1 1.4 -10.3 -0.3 

 I -0.6 1.1 1.6 1.2 0.1 1.7 0.7 1.4 -2.6 0.8 

2015 ANNUAL 1.4 3.6 2.2 3.0 2.9 1.6 0.4 1.2 -5.1 0.3 

2015 IV 0.1 1.9 1.8 3.4 3.0 3.3 3.7 3.4 -17.5 0.2 

 III 1.0 2.8 1.8 3.3 3.1 2.3 0.1 1.6 -6.1 0.4 

 II 1.8 3.9 2.1 3.5 3.5 1.6 -0.4 1.0 -2.1 0.5 

 I 2.7 6.0 3.2 1.9 2.0 -0.8 -1.8 -1.1 7.6 0.1 

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

 Indexes 2009=100

2017 II 109.2 127.2 116.5 116.9 102.8 107.0 100.1 104.7 139.2 108.3 

 I 108.0 r 124.9 r 115.7 116.3 r 102.2 r 107.7 r 100.9 r 105.4 r 134.6 r 108.5 

2016 ANNUAL 107.7 123.5 114.6 115.4 103.1 107.1 99.9 104.7 138.0 108.2 

2016 IV 107.4 123.6 115.1 115.1 101.9 107.1 101.1 105.1 135.5 108.3 

 III 108.7 124.9 114.9 116.2 103.7 106.9 98.9 104.2 136.5 107.6 

 II 107.1 122.6 114.5 115.6 103.6 107.9 100.1 105.3 134.1 108.3 

 I 107.7 122.8 114.1 114.6 103.3 106.4 99.7 104.1 146.0 108.5 

2015 ANNUAL 107.9 121.8 112.9 114.1 103.3 105.8 100.5 104.0 145.8 108.4 

2015 IV 107.5 122.5 113.9 115.1 103.8 107.0 103.2 105.7 132.4 108.5 

 III 107.9 122.0 113.1 114.1 103.0 105.7 99.9 103.8 151.4 108.8 

 II 107.8 121.3 112.6 114.0 103.3 105.8 99.9 103.8 149.5 108.6 

 I 108.3 121.6 112.2 113.2 103.2 104.6 98.9 102.7 150.0 107.6 

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

See footnotes following Table 6. September 7, 2017

r=revised Source: Bureau of Labor Statistics
-14- 

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 –1.5 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 first quarter of 2017. 

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 1978-2016 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.