Transmission of material in this release is embargoed until USDL 20-2032

8:30 a.m. (ET) Thursday, November 5, 2020

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

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

PRODUCTIVITY AND COSTS 

Third Quarter 2020, Preliminary

Nonfarm business sector labor productivity increased 4.9 percent in the third quarter of 2020, the 

U.S. Bureau of Labor Statistics reported today, as output increased 43.5 percent and hours worked 

increased 36.8 percent. (All quarterly percent changes in this release are seasonally adjusted annual 

rates, and show what the percent change would be if the quarterly rate continued for four quarters.) 

The 4.9-percent gain in productivity in the third quarter was the second consecutive large increase in the 

measure—productivity had increased 10.6 percent in the second quarter of 2020. With the exception of 

the second quarter, productivity growth in the third quarter of 2020 was the largest quarterly increase 

since the fourth quarter of 2009 (5.7 percent). The two-quarter growth rate observed during the second 

and third quarters of 2020 (7.7 percent) is the highest rate of productivity growth over two quarters since 

the third and fourth quarters of 1965 (7.8 percent). Over the last four quarters, nonfarm business 

productivity increased 4.1 percent. (See chart 1 and table A1.)

Unit labor costs in the nonfarm business sector decreased at an annual rate of 8.9 percent in the third

quarter of 2020, reflecting a 4.4-percent decrease in hourly compensation and a 4.9 percent increase in 

productivity. The third-quarter decline in unit labor costs was the largest decline since the first quarter of 

2009, when the measure fell 13.4 percent. Unit labor costs increased 2.5 percent over the last four 

quarters. (See chart 2 and table 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 

labor productivity tend to reduce unit labor costs.

Chart 1. Labor productivity, nonfarm business, 2016Q1 – 2020Q3

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2016 2017 2018 2019 2020

From previous quarter, annual rate

From same quarter a year ago

Percent change Percent change

Chart 2. Unit labor costs, nonfarm business, 2016Q1 – 2020Q3

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2016 2017 2018 2019 2020

From previous quarter, annual rate

From same quarter a year ago
-2-

A decline of 9.1 percent in real hourly compensation in the third quarter of 2020 was the largest decline 

in the series, and reflects the combination of a 4.4-percent decline in hourly compensation and a large 

increase in the BLS consumer price index series for the third quarter of 5.2 percent at an annual rate. 

The decline in real hourly compensation in the third quarter was preceded by a series-high quarterly 

increase of 24.4 percent in the second quarter of 2020.

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. The 10.6 

percent gain in nonfarm business labor productivity in second-quarter 2020 reflected a decline in output 

of 36.8 percent and a decline in hours worked of 42.9 percent; these were the largest declines in both 

series which begin in the first quarter of 1947. In contrast, the 4.9-percent increase in productivity in 

third-quarter 2020 reflected the largest gains in the output and hours series, with output increasing 43.5 

percent and hours increasing 36.8 percent. Although gains were historically large, the third-quarter 2020

output and hours worked index levels remain below their fourth quarter of 2019 levels, the last quarter 

before the coronavirus (COVID-19) pandemic began. Specifically, output remains 4.0 percent below its 

fourth-quarter 2019 level, recovering somewhat faster than hours worked, which remains 7.5 percent 

lower. (See chart 3.)

Manufacturing sector labor productivity increased at a 19.0 percent annual rate in the third quarter of 

2020. This is the largest increase in the series, which begins in the first quarter of 1987. Manufacturing 

output increased at a series-high 54.8 percent annual rate and hours worked increased at a series-high 

30.1 percent annual rate in the third quarter of 2020. The increase in total manufacturing productivity 

was concentrated in durable goods manufacturing, where productivity increased 44.2 percent as output 

grew 96.0 percent and hours worked rose 35.9 percent. In the nondurable goods manufacturing sector, 

productivity increased 1.2 percent as output and hours worked increased 22.7 percent and 21.2 percent, 

respectively. (See tables A1, 3, 4 and 5.) Total manufacturing sector productivity increased 0.7 percent 

over the last four quarters, as output decreased 6.1 percent and hours worked decreased 6.8 percent. (See 

chart 4 and tables A1 and 3.) 

84

86

88

90

92

94

96

98

100

102

2019 Q4 2020 Q1 2020 Q2 2020 Q3

Output Hours

Chart 3. Output and Hours index series, nonfarm business, all persons, 2019 Q4 – 2020 Q3 

Index (2019 Q4=100)
-3-

Unit labor costs in the total manufacturing sector decreased 18.2 percent in the third quarter of 2020, the 

largest decline since the first quarter of 1993, when the measure fell 19.8 percent. The third-quarter 

decrease followed a 28.4-percent increase in unit labor costs in the second quarter of 2020, the largest 

increase in the series. Unit labor costs increased 3.8 percent from the same quarter a year ago. (See chart 

5 and table A1.) 

The unprecedented increases in total manufacturing productivity, output, and hours in the third quarter 

of 2020 followed the largest decreases in these three measures in the second quarter of 2020, in which 

total manufacturing productivity fell 14.3 percent, output dropped 46.7 percent, and hours worked fell 

37.8 percent. Although there were historically large increases in the third quarter, the total 

manufacturing output and hours index levels did not recover to their fourth quarter of 2019 levels—the

last quarter before the coronavirus (COVID-19) pandemic began. Output remained 6.0 percent below its 

fourth-quarter 2019 level, while hours worked was 6.9 percent lower. (See chart 6 and table 3.)
-4-

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)

Revised measures

Revised and previous measures for the second quarter of 2020 are shown in tables A2 and B1, covering 

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

In the second quarter of 2020, nonfarm business sector productivity increased 10.6 percent, slightly 

more than reported on September 3, and the largest increase since the first quarter of 1971, when the 

measure rose 12.3 percent. Unit labor costs increased 8.5 percent during the second quarter, slightly 

less than previously reported. (See table B1.)

Manufacturing sector productivity fell 14.3 percent in the second quarter; this was a slightly smaller 

decline than previously reported, though still the largest decline in this series. Durable manufacturing 

productivity was not revised, falling at the same 26.9 percent rate previously reported—the largest decline 

in the series. Nondurable manufacturing productivity was revised upward to a decline of 4.4 percent. Unit 

labor costs in total manufacturing increased 28.4 percent in the second quarter, rather than increasing 

29.1 percent as reported September 3, and still represented the series-high value after revision.

Second-quarter 2020 measures of productivity and costs were revised for the nonfinancial corporate

sector. Productivity increased 2.9 percent rather than increasing 3.1 percent as previously reported. 

Unit labor costs increased 23.5 percent rather than the preliminary estimate of a 23.3-percent increase. 

(See table A2.)

Complete annual and quarterly data series can be found on the Productivity and Costs home page: 

www.bls.gov/lpc/#data.

______________

The revised Productivity and Costs news release for third-quarter 2020 is scheduled to be released 

on Tuesday, December 8, 2020 at 8:30 a.m. (ET).

84

86

88

90

92

94

96

98

100

102

2019 Q4 2020 Q1 2020 Q2 2020 Q3

Output Hours

Chart 6. Output and Hours index series, manufacturing, all persons, 2019 Q4 – 2020 Q3 

Index (2019 Q4=100)
-5-

Table A1. Labor productivity growth and related measures - preliminary third-quarter 2020

(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 4.9 43.5 36.8 -4.4 -9.1 -8.9

A year ago 4.1 -3.4 -7.2 6.7 5.3 2.5

Business Previous quarter 6.4 43.7 35.1 -3.3 -8.1 -9.1

A year ago 4.3 -3.2 -7.2 6.7 5.4 2.4

Manufacturing Previous quarter 19.0 54.8 30.1 -2.6 -7.4 -18.2

A year ago 0.7 -6.1 -6.8 4.6 3.3 3.8

Durable 

manufacturing

Previous quarter 44.2 96.0 35.9 -3.0 -7.8 -32.8

A year ago 0.4 -7.4 -7.8 4.5 3.2 4.1

Nondurable 

manufacturing

Previous quarter 1.2 22.7 21.2 -2.8 -7.5 -4.0

A year ago 0.5 -4.6 -5.0 5.0 3.7 4.6

Table A2. Labor productivity growth and related measures - revised and previously published second-quarter 2020

(percent change from previous quarter at annual rate)

Sector

Labor 

productivity Output

Hours 

worked

Hourly 

compensation

Real hourly 

compensation

Unit labor 

costs

Nonfinancial 

corporate

Revised 2.9 -39.4 -41.1 27.1 31.8 23.5

Previously published 3.1 -39.3 -41.1 27.1 31.7 23.3

Table B1. Labor productivity growth and related measures - revised and previously published second-quarter 2020

(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 10.6 -36.8 -42.9 20.0 24.4 8.5

Previously published 10.1 -37.1 -42.9 20.0 24.4 9.0

Business Revised 9.6 -36.8 -42.4 19.4 23.7 8.9

Previously published 8.9 -37.2 -42.3 19.3 23.7 9.6

Manufacturing Revised -14.3 -46.7 -37.8 10.1 14.1 28.4

Previously published -14.6 -47.0 -38.0 10.3 14.4 29.1

Durable 

manufacturing

Revised -26.9 -57.8 -42.3 8.8 12.8 48.8

Previously published -26.9 -57.9 -42.4 9.1 13.1 49.2

Nondurable 

manufacturing

Revised -4.4 -32.9 -29.8 14.6 18.8 19.9

Previously published -5.1 -33.5 -30.0 14.6 18.8 20.7
-6-

TECHNICAL NOTES

Labor Hours

Hours worked 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. 

Detailed hours data are presented in the table “Hours Worked in Total U.S. Economy and Subsectors” 

on the BLS website (https://www.bls.gov/lpc/special_requests/us_total_hrs_emp.xlsx).

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 

worked. Business output accounted for about 78 percent of the value of GDP in 2019. Nonfarm 

business, which excludes farming, accounted for about 77 percent of GDP in 2019.

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 Index 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 2019. 
-7-

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.

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 2012=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: 202-691-5200; 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)

2020 III 6.4 43.7 35.1 -3.3 -8.1 -9.1 27.8 4.7 

 II 9.6 r -36.8 r -42.4 r 19.4 r 23.7 8.9 r -20.3 r -4.3 r

 I 0.0 -6.0 -6.0 9.0 7.7 9.0 -9.2 0.8 

2019 ANNUAL 1.7 2.4 0.7 3.6 1.8 1.9 0.9 1.5 

2019 IV 1.4 2.8 1.4 3.1 0.7 1.7 0.6 1.2 

 III 0.2 2.9 2.7 -0.1 -1.9 -0.3 2.9 1.1 

 II 2.2 1.3 -0.9 1.7 -1.3 -0.5 7.8 3.0 

 I 3.6 3.6 0.0 8.8 7.9 5.0 -5.4 0.4 

2018 ANNUAL 1.6 3.5 1.9 3.4 0.9 1.8 2.7 2.2 

2018 IV 0.7 1.5 0.8 1.5 0.3 0.9 2.2 1.4 

 III 0.1 2.3 2.1 4.7 2.5 4.5 -3.0 1.1 

 II 1.7 3.0 1.3 1.7 -0.5 -0.1 8.4 3.6 

 I 2.9 4.5 1.6 2.7 -0.6 -0.2 5.0 2.0 

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

 Percent change from corresponding quarter of previous year

2020 III 4.3 -3.2 -7.2 6.7 5.4 2.4 -1.8 0.6 

 II 2.7 r -11.0 r -13.3 7.6 7.1 4.8 r -7.0 r -0.3 r

 I 0.9 0.2 -0.8 3.3 1.2 2.4 0.3 1.5 

2019 ANNUAL 1.7 2.4 0.7 3.6 1.8 1.9 0.9 1.5 

2019 IV 1.8 2.6 0.8 3.3 1.3 1.4 1.4 1.4 

 III 1.7 2.3 0.6 2.9 1.1 1.2 1.8 1.5 

 II 1.7 2.2 0.5 4.1 2.3 2.4 0.2 1.5 

 I 1.5 2.6 1.0 4.1 2.5 2.6 0.4 1.6 

2018 ANNUAL 1.6 3.5 1.9 3.4 0.9 1.8 2.7 2.2 

2018 IV 1.3 2.8 1.4 2.6 0.4 1.3 3.1 2.0 

 III 1.3 3.6 2.2 3.4 0.7 2.1 2.7 2.3 

 II 2.0 3.9 1.9 3.7 1.0 1.6 3.7 2.5 

 I 1.6 3.7 2.1 3.9 1.6 2.3 1.3 1.9 

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

 Indexes 2012=100

2020 III 112.9 118.0 104.5 128.1 113.1 113.5 107.9 111.1 

 II 111.2 r 107.7 r 96.9 r 129.2 r 115.6 r 116.2 r 101.5 r 109.8 r

 I 108.7 120.8 111.2 123.6 109.6 113.8 107.4 111.0 

2019 ANNUAL 108.2 121.6 112.3 120.2 107.8 111.1 109.0 110.2 

2019 IV 108.7 122.7 113.0 121.0 107.6 111.4 110.1 110.8 

 III 108.3 121.9 112.6 120.1 107.4 110.9 109.9 110.4 

 II 108.3 121.0 111.8 120.1 107.9 111.0 109.1 110.2 

 I 107.7 120.6 112.1 119.6 108.3 111.1 107.1 109.4 

2018 ANNUAL 106.4 118.7 111.5 116.0 105.9 109.0 108.0 108.6 

2018 IV 106.7 119.6 112.1 117.1 106.2 109.8 108.6 109.3 

 III 106.5 119.1 111.8 116.7 106.2 109.5 108.0 108.9 

 II 106.5 118.5 111.3 115.4 105.5 108.3 108.8 108.5 

 I 106.0 117.6 110.9 114.9 105.6 108.3 106.7 107.6 

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

See footnotes following Table 6. November 5, 2020

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)

2020 III 4.9 43.5 36.8 -4.4 -9.1 -8.9 26.8 4.4 

 II 10.6 r -36.8 r -42.9 20.0 24.4 8.5 r -18.6 r -3.6 r

 I -0.3 -6.4 -6.1 9.2 7.9 9.6 -9.8 0.8 

2019 ANNUAL 1.7 2.5 0.7 3.6 1.8 1.9 1.1 1.5 

2019 IV 1.6 2.8 1.2 3.3 0.9 1.7 0.6 1.2 

 III 0.3 2.9 2.6 -0.2 -2.0 -0.4 2.9 1.0 

 II 2.0 1.2 -0.7 1.4 -1.6 -0.6 8.0 3.0 

 I 3.7 3.8 0.1 8.7 7.7 4.8 -5.2 0.4 

2018 ANNUAL 1.4 3.5 2.0 3.4 0.9 1.9 2.7 2.2 

2018 IV 0.8 1.4 0.7 1.8 0.5 1.0 1.9 1.4 

 III 0.5 2.3 1.8 5.1 2.9 4.5 -2.4 1.4 

 II 1.1 3.0 1.8 1.3 -0.9 0.2 8.3 3.6 

 I 2.3 4.3 2.0 2.2 -1.0 0.0 4.9 2.1 

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

 Percent change from corresponding quarter of previous year

2020 III 4.1 -3.4 -7.2 6.7 5.3 2.5 -1.6 0.7 

 II 2.9 r -11.1 r -13.6 7.8 7.4 4.8 r -6.7 r -0.2 r

 I 0.9 0.1 -0.8 3.4 1.2 2.5 0.2 1.5 

2019 ANNUAL 1.7 2.5 0.7 3.6 1.8 1.9 1.1 1.5 

2019 IV 1.9 2.7 0.8 3.3 1.2 1.4 1.4 1.4 

 III 1.7 2.3 0.6 2.9 1.1 1.2 1.8 1.4 

 II 1.7 2.2 0.4 4.2 2.3 2.4 0.5 1.6 

 I 1.5 2.6 1.1 4.2 2.5 2.6 0.5 1.7 

2018 ANNUAL 1.4 3.5 2.0 3.4 0.9 1.9 2.7 2.2 

2018 IV 1.2 2.7 1.6 2.6 0.4 1.4 3.1 2.1 

 III 1.3 3.6 2.2 3.5 0.8 2.2 2.7 2.4 

 II 1.8 3.9 2.1 3.5 0.8 1.7 3.7 2.6 

 I 1.5 3.7 2.2 3.8 1.6 2.3 1.4 1.9 

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

 Indexes 2012=100

2020 III 112.4 117.6 104.6 128.2 113.2 114.0 109.0 111.9 

 II 111.1 r 107.4 r 96.7 r 129.7 r 115.9 r 116.7 r 102.7 r 110.6 r

 I 108.3 120.5 111.2 123.9 109.8 114.4 108.2 111.7 

2019 ANNUAL 107.9 121.3 112.4 120.4 107.9 111.5 110.0 110.8 

2019 IV 108.4 122.5 113.0 121.2 107.7 111.8 111.0 111.4 

 III 108.0 121.6 112.7 120.2 107.5 111.3 110.8 111.1 

 II 107.9 120.8 111.9 120.2 108.0 111.4 110.1 110.8 

 I 107.4 120.4 112.1 119.8 108.4 111.6 108.0 110.0 

2018 ANNUAL 106.1 118.4 111.6 116.2 106.0 109.5 108.8 109.2 

2018 IV 106.4 119.3 112.1 117.3 106.4 110.3 109.4 109.9 

 III 106.2 118.9 111.9 116.8 106.3 110.0 108.9 109.5 

 II 106.1 118.2 111.4 115.4 105.5 108.8 109.6 109.1 

 I 105.8 117.3 110.9 115.0 105.8 108.8 107.4 108.2 

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

See footnotes following Table 6. November 5, 2020

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)

2020 III 19.0 54.8 30.1 -2.6 -7.4 -18.2 

 II -14.3 r -46.7 r -37.8 r 10.1 r 14.1 r 28.4 r

 I 1.6 r -5.5 r -7.0 6.0 4.7 4.2 

2019 ANNUAL 0.1 0.0 -0.1 2.9 1.1 2.8 

2019 IV -0.7 -0.2 0.5 5.2 2.8 6.0 

 III -0.5 0.9 1.4 -1.9 -3.7 -1.4 

 II -2.3 -3.1 -0.9 1.4 -1.6 3.8 

 I 1.3 -1.7 -3.1 6.9 6.0 5.5 

2018 ANNUAL 0.3 2.2 1.9 2.1 -0.3 1.8 

2018 IV 0.9 1.6 0.6 3.4 2.1 2.4 

 III 0.3 4.0 3.7 3.6 1.5 3.3 

 II 1.3 2.6 1.3 -3.4 -5.5 -4.7 

 I -0.1 1.8 1.9 2.5 -0.8 2.6 

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

 Percent change from corresponding quarter of previous year

2020 III 0.7 -6.1 -6.8 4.6 3.3 3.8 

 II -3.7 -15.6 r -12.4 4.8 4.3 8.8 r

 I -0.5 -2.0 -1.5 2.6 0.5 3.1 

2019 ANNUAL 0.1 0.0 -0.1 2.9 1.1 2.8 

2019 IV -0.6 -1.1 -0.5 2.9 0.8 3.4 

 III -0.1 -0.6 -0.5 2.4 0.6 2.6 

 II 0.1 0.1 0.1 3.8 2.0 3.8 

 I 1.0 1.6 0.6 2.6 0.9 1.6 

2018 ANNUAL 0.3 2.2 1.9 2.1 -0.3 1.8 

2018 IV 0.6 2.5 1.9 1.5 -0.7 0.9 

 III 1.1 3.3 2.2 1.9 -0.8 0.7 

 II -0.3 1.7 2.0 1.6 -1.1 1.9 

 I -0.2 1.4 1.6 3.6 1.4 3.8 

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

 Indexes 2012=100

2020 III 99.2 98.5 99.3 120.2 106.2 121.1 

 II 95.0 r 88.3 r 93.0 r 121.0 r 108.2 r 127.4 r

 I 98.7 r 103.4 r 104.7 118.1 104.7 119.6 r

2019 ANNUAL 98.7 105.0 106.4 115.5 103.5 117.1 

2019 IV 98.3 104.8 106.6 116.4 103.5 118.4 

 III 98.5 104.9 106.5 115.0 102.8 116.7 

 II 98.6 104.7 106.1 115.5 103.8 117.1 

 I 99.2 105.5 106.3 115.1 104.2 116.0 

2018 ANNUAL 98.6 105.0 106.4 112.2 102.4 113.8 

2018 IV 98.9 106.0 107.1 113.2 102.7 114.5 

 III 98.7 105.5 107.0 112.3 102.1 113.8 

 II 98.6 104.5 106.0 111.3 101.8 112.9 

 I 98.3 103.8 105.7 112.2 103.2 114.2 

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

See footnotes following Table 6. November 5, 2020

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)

2020 III 44.2 96.0 35.9 -3.0 -7.8 -32.8 

 II -26.9 -57.8 r -42.3 r 8.8 r 12.8 r 48.8 r

 I -2.6 -9.8 -7.4 4.5 3.2 7.3 

2019 ANNUAL 0.7 0.8 0.2 2.4 0.5 1.7 

2019 IV -1.1 -1.5 -0.4 8.0 5.5 9.2 

 III 0.4 1.5 1.1 -3.2 -4.9 -3.6 

 II -0.7 -2.3 -1.6 0.4 -2.5 1.1 

 I 0.3 -2.7 -3.0 6.9 5.9 6.6 

2018 ANNUAL 1.4 3.6 2.2 2.7 0.2 1.3 

2018 IV 1.8 5.0 3.1 1.5 0.3 -0.3 

 III 2.6 6.3 3.6 3.3 1.2 0.7 

 II 0.9 2.9 2.0 -2.8 -4.9 -3.7 

 I 1.7 4.8 3.1 2.7 -0.6 1.0 

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

 Percent change from corresponding quarter of previous year

2020 III 0.4 -7.4 -7.8 4.5 3.2 4.1 

 II -8.3 -21.5 -14.3 r 4.4 r 4.0 13.9 

 I -1.0 -3.1 -2.1 2.4 0.2 3.4 

2019 ANNUAL 0.7 0.8 0.2 2.4 0.5 1.7 

2019 IV -0.3 -1.3 -1.0 2.9 0.9 3.2 

 III 0.5 0.3 -0.1 1.4 -0.4 0.9 

 II 1.0 1.5 0.5 3.0 1.2 2.0 

 I 1.4 2.8 1.4 2.2 0.5 0.7 

2018 ANNUAL 1.4 3.6 2.2 2.7 0.2 1.3 

2018 IV 1.8 4.8 2.9 1.1 -1.0 -0.6 

 III 2.3 4.8 2.5 2.4 -0.2 0.2 

 II 0.5 2.7 2.2 2.2 -0.4 1.7 

 I 1.0 2.2 1.2 4.9 2.6 3.9 

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

 Indexes 2012=100

2020 III 101.2 99.6 98.4 120.2 106.1 118.7 

 II 92.4 r 84.2 r 91.1 r 121.1 r 108.3 r 131.1 r

 I 99.9 r 104.4 r 104.5 118.6 105.1 118.7 r

2019 ANNUAL 100.8 107.4 106.6 116.0 104.0 115.2 

2019 IV 100.6 107.2 106.6 117.3 104.3 116.6 

 III 100.9 107.6 106.7 115.1 102.9 114.1 

 II 100.7 107.2 106.4 116.0 104.2 115.1 

 I 100.9 107.8 106.8 115.9 104.8 114.8 

2018 ANNUAL 100.1 106.6 106.4 113.4 103.5 113.2 

2018 IV 100.8 108.5 107.6 113.9 103.3 113.0 

 III 100.4 107.2 106.8 113.5 103.3 113.1 

 II 99.7 105.6 105.9 112.6 103.0 112.9 

 I 99.5 104.8 105.4 113.4 104.3 114.0 

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

See footnotes following Table 6. November 5, 2020

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)

2020 III 1.2 22.7 21.2 -2.8 -7.5 -4.0 

 II -4.4 r -32.9 r -29.8 r 14.6 18.8 19.9 r

 I 6.1 r -0.7 r -6.4 9.0 7.7 2.7 r

2019 ANNUAL -0.4 -0.9 -0.5 3.9 2.1 4.4 

2019 IV -0.8 1.2 2.1 0.2 -2.1 1.1 

 III -1.8 0.2 2.0 0.7 -1.1 2.4 

 II -4.4 -4.0 0.5 3.7 0.6 8.5 

 I 2.5 -0.7 -3.2 7.0 6.0 4.3 

2018 ANNUAL -0.8 0.5 1.4 1.0 -1.4 1.8 

2018 IV 1.4 -2.0 -3.3 6.4 5.1 4.9 

 III -2.4 1.4 3.9 4.3 2.2 6.9 

 II 1.9 2.0 0.1 -4.8 -6.8 -6.5 

 I -1.6 -1.6 0.0 1.7 -1.5 3.3 

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

 Percent change from corresponding quarter of previous year

2020 III 0.5 -4.6 -5.0 5.0 3.7 4.6 

 II -0.3 r -9.3 r -9.0 r 5.9 r 5.5 6.3 r

 I -0.3 -0.8 -0.5 3.3 1.2 3.6 

2019 ANNUAL -0.4 -0.9 -0.5 3.9 2.1 4.4 

2019 IV -1.2 -0.8 0.3 2.8 0.8 4.0 

 III -0.6 -1.6 -1.0 4.4 2.6 5.0 

 II -0.8 -1.3 -0.6 5.3 3.4 6.1 

 I 0.8 0.2 -0.7 3.1 1.5 2.3 

2018 ANNUAL -0.8 0.5 1.4 1.0 -1.4 1.8 

2018 IV -0.2 -0.1 0.1 1.8 -0.4 2.0 

 III -0.1 1.5 1.6 0.7 -1.9 0.8 

 II -1.2 0.3 1.6 0.3 -2.4 1.5 

 I -1.8 0.4 2.3 1.2 -1.0 3.1 

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

 Indexes 2012=100

2020 III 97.5 98.3 100.8 120.5 106.4 123.6 

 II 97.2 r 93.4 r 96.0 r 121.4 r 108.5 r 124.8 r

 I 98.3 r 103.2 r 104.9 117.3 104.0 119.3 r

2019 ANNUAL 97.5 103.3 106.0 114.4 102.6 117.3 

2019 IV 96.9 103.4 106.7 114.8 102.0 118.5 

 III 97.1 103.0 106.1 114.7 102.6 118.2 

 II 97.5 103.0 105.6 114.6 102.9 117.5 

 I 98.6 104.0 105.5 113.5 102.7 115.1 

2018 ANNUAL 98.0 104.3 106.5 110.1 100.5 112.4 

2018 IV 98.0 104.2 106.3 111.6 101.2 113.9 

 III 97.7 104.7 107.2 109.9 100.0 112.5 

 II 98.3 104.4 106.2 108.8 99.5 110.7 

 I 97.8 103.9 106.2 110.1 101.2 112.5 

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

See footnotes following Table 6. November 5, 2020

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)

2020 II 2.9 r -39.4 r -41.1 27.1 31.8 r 23.5 r -48.3 r -4.2 r -5.0 r -4.3 r

 I 0.2 -4.0 -4.2 8.1 6.8 7.9 10.3 8.7 -44.1 0.6 

2019 ANNUAL 0.6 1.6 0.9 3.7 1.9 3.1 1.9 2.7 -3.3 1.9 

2019 IV 1.3 2.6 1.2 2.5 0.1 1.2 -2.3 0.1 12.4 1.5 

 III -0.8 -0.1 0.7 0.0 -1.7 0.9 6.6 2.6 -5.3 1.6 

 II 1.0 1.0 0.1 1.3 -1.7 0.3 1.5 0.7 16.1 2.4 

 I 1.4 2.9 1.5 11.1 10.1 9.5 3.3 7.5 -30.8 1.7 

2018 ANNUAL 0.6 2.6 1.9 3.5 1.0 2.8 -1.0 1.6 6.2 2.2 

2018 IV -0.3 0.2 0.5 1.3 0.0 1.7 2.4 1.9 2.2 1.9 

 III 2.5 3.7 1.1 3.2 1.0 0.6 -1.9 -0.2 15.1 1.7 

 II -2.2 0.2 2.5 0.1 -2.0 2.4 -0.2 1.6 15.2 3.2 

 I 4.7 6.7 1.8 8.6 5.1 3.7 -4.2 1.1 8.0 1.9 

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

 Percent change from corresponding quarter of previous year

2020 II 0.9 -12.2 r -12.9 9.0 8.5 8.0 r -12.2 r 1.7 r -13.3 r -0.2 

 I 0.4 -0.2 -0.6 2.9 0.8 2.5 3.9 3.0 -8.9 1.5 

2019 ANNUAL 0.6 1.6 0.9 3.7 1.9 3.1 1.9 2.7 -3.3 1.9 

2019 IV 0.7 1.6 0.9 3.6 1.6 2.9 2.2 2.7 -3.9 1.8 

 III 0.3 1.0 0.7 3.3 1.6 3.0 3.4 3.1 -6.1 1.9 

 II 1.1 1.9 0.8 4.1 2.3 2.9 1.3 2.4 -1.4 1.9 

 I 0.3 1.7 1.4 3.8 2.2 3.5 0.9 2.7 -1.6 2.1 

2018 ANNUAL 0.6 2.6 1.9 3.5 1.0 2.8 -1.0 1.6 6.2 2.2 

2018 IV 1.1 2.6 1.5 3.2 1.0 2.1 -1.0 1.1 10.0 2.2 

 III 1.0 3.0 2.0 3.6 0.9 2.6 -1.8 1.2 10.1 2.3 

 II -0.2 1.9 2.1 3.5 0.8 3.7 -0.8 2.2 3.2 2.4 

 I 0.7 2.9 2.2 3.7 1.4 3.0 -0.3 1.9 1.4 1.9 

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

 Indexes 2012=100

2020 II 103.6 r 102.4 r 98.9 r 130.9 r 117.0 r 126.3 r 93.5 r 115.4 r 83.5 r 110.8 r

 I 102.9 116.1 112.9 123.3 109.2 119.8 110.3 116.7 84.5 112.1 

2019 ANNUAL 102.6 116.7 113.7 120.2 107.8 117.2 107.1 113.8 95.4 111.2 

2019 IV 102.8 117.3 114.1 120.9 107.4 117.6 107.6 114.3 97.8 111.9 

 III 102.5 116.6 113.7 120.1 107.4 117.2 108.2 114.2 95.0 111.5 

 II 102.7 116.6 113.6 120.1 107.9 117.0 106.5 113.5 96.3 111.0 

 I 102.4 116.3 113.5 119.7 108.4 116.9 106.1 113.3 92.7 110.4 

2018 ANNUAL 102.0 114.9 112.7 115.9 105.8 113.7 105.1 110.8 98.7 109.1 

2018 IV 102.1 115.5 113.1 116.6 105.8 114.3 105.3 111.3 101.7 109.9 

 III 102.2 115.4 113.0 116.3 105.8 113.8 104.7 110.8 101.1 109.4 

 II 101.5 114.4 112.7 115.4 105.5 113.6 105.2 110.8 97.6 108.9 

 I 102.1 114.3 112.0 115.3 106.0 112.9 105.2 110.4 94.2 108.1 

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

See footnotes following Table 6. November 5, 2020

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 -1.4 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 second

quarter of 2020.

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 1978-2019 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 

adjustment.