Transmission of material in this release is embargoed until USDL-11-1276 

8:30 a.m. (EDT) Thursday, September 1, 2011 

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

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

PRODUCTIVITY AND COSTS

Second Quarter 2011, Revised 

Nonfarm business sector labor productivity decreased at a 0.7 percent annual rate during the second 

quarter of 2011, the U.S. Bureau of Labor Statistics reported today, with output and hours worked rising 

1.3 percent and 2.0 percent, respectively. (All quarterly percent changes in this release are seasonally 

adjusted annual rates.) From the second quarter of 2010 to the second quarter of 2011, output increased 

2.4 percent while hours rose 1.6 percent, yielding an increase in productivity of 0.7 percent. (See chart 1, 

tables A and 2.) 

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

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

Unit labor costs in nonfarm businesses rose 3.3 percent in the second quarter of 2011, because hourly 

compensation increased 2.7 percent while productivity decreased 0.7 percent. Over the last four quarters, 

hourly compensation increased more than output per hour, and unit labor costs rose 1.9 percent. (See 

chart 2, tables A and 2.) 

BLS defines 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. Output per hour, nonfarm business, all persons, 

2006Q1 – 2011Q2

-9.0

-7.0

-5.0

-3.0

-1.0

1.0

3.0

5.0

7.0

9.0

2006 2007 2008 2009 2010 2011

From previous quarter, annual rate

From same quarter a year ago

-9.0

-7.0

-5.0

-3.0

-1.0

1.0

3.0

5.0

7.0

9.0

2006 2007 2008 2009 2010 2011

From previous quarter, annual rate

From same quarter a year ago

Percent change Percent change

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

2006Q1 – 2011Q2
-2- 

Manufacturing sector productivity fell 1.5 percent in the second quarter of 2011, as output rose 1.2 

percent and hours increased 2.7 percent. Productivity declined 2.7 percent in the durable goods sector 

and increased 1.3 percent in the nondurable goods sector. Over the last four quarters, total 

manufacturing productivity increased 2.4 percent. Unit labor costs in manufacturing rose 4.6 percent 

in the second quarter of 2011 and 0.4 percent over the last four quarters. (See tables A, 3, 4, and 5.) 

The data sources and methods used in the preparation of the manufacturing output series differ from 

those used in preparing the business and nonfarm business output series, and these measures are not 

directly comparable. See Technical Notes for further information on data sources. (See page 4.) 

Preliminary data for the second quarter of 2011 for the nonfinancial corporate sector also were 

released today. Productivity increased 4.4 percent as output and hours rose 7.5 percent and 3.0 percent, 

respectively. (See tables C and 6.) 

Revised Measures

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

preliminary report. Tables B and C present previous and revised productivity and related measures for 

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

In the second quarter of 2011, nonfarm business productivity decreased 0.7 percent, rather 

than 0.3 percent, reflecting a downward revision of 0.5 percentage points to output; hours were 

not revised. Hourly compensation increased 2.7 percent in the second quarter, a larger gain 

than reported August 9. The increase in unit labor costs was revised up to 3.3 percent. In the

manufacturing sector, productivity showed a smaller decline than previously reported, 1.5 

percent, due to an upward revision to output; hours were revised up slightly. Unit labor costs 

increased 4.6 percent rather than 4.4 percent. 

In the first quarter of 2011, nonfarm business productivity growth was not revised. Unit labor costs 

increased 6.2 percent, rather than the previous estimate of 4.8 percent, due solely to an upward revision 

to hourly compensation. The first-quarter increase in unit labor costs follows a 2.0 percent decline from 

2009 to 2010, the largest in the annual series. In manufacturing, productivity growth was not revised. 

Unit labor costs fell 0.1 percent, rather than 1.1 percent, due to an upward revision to hourly 

compensation. 

Nonfinancial corporate sector productivity growth in the first quarter of 2011 was revised up to 2.3 

percent from the preliminary estimate of 1.4 percent. (See tables C and 6.) 

Manufacturing sector productivity, output, and unit labor costs series were revised back to 1987 to 

reflect revised output indexes constructed by BLS using data from the U.S. Department of Commerce. 

Manufacturing productivity was revised up for the years 2009 and 2010, and the average annual rate of 

growth from 2007 to 2010 is now 2.0 percent, compared to 1.6 percent as of August 9. Revised annual 

index series appear in appendix tables 1-3. Full historical annual and quarterly measures can be found 

on the productivity and costs home page at www.bls.gov/lpc/#data . ___________

The preliminary Productivity and Costs news release for third-quarter 2011 is scheduled to be 

released on Thursday, November 3, 2011 at 8:30 a.m. (EDT).
-3- 

Table A. Revised second-quarter 2011 measures: percent change from previous quarter, annual rate (Q to Q) and from same quarter a year 

ago (Y to Y)

Sector

 Nonfarm

 Business Business Manufacturing

 Durable

 Manufacturing

 Nondurable

 Manufacturing

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

Productivity -0.7 0.7 -0.5 0.6 -1.5 2.4 -2.7 2.7 1.3 3.5

Output 1.3 2.4 1.2 2.1 1.2 4.6 2.2 7.4 0.3 1.8

Hours 2.0 1.6 1.7 1.5 2.7 2.1 5.0 4.5 -0.9 -1.7

Hourly compensation 2.7 2.7 3.1 2.7 3.1 2.8 2.4 2.0 4.1 3.7

Real hourly compensation -1.4 -0.7 -1.0 -0.6 -0.9 -0.6 -1.6 -1.3 0.0 0.3

Unit labor costs 3.3 1.9 3.5 2.1 4.6 0.4 5.2 -0.7 2.7 0.1

Table B. Revised and previous measures: second quarter and first quarter 2011 

Sector

 Nonfarm

 Business Business Manufacturing

 Durable

 Manufacturing

 Nondurable

 Manufacturing

Revised Previous Revised Previous Revised Previous Revised Previous Revised Previous

Percent change, annual rate, second quarter 2011 

Productivity -0.7 -0.3 -0.5 0.0 -1.5 -2.0 -2.7 -3.5 1.3 1.2

Output 1.3 1.8 1.2 1.6 1.2 0.6 2.2 1.4 0.3 -0.2

Hours 2.0 2.0 1.7 1.7 2.7 2.6 5.0 5.1 -0.9 -1.4

Hourly compensation 2.7 1.9 3.1 2.3 3.1 2.3 2.4 1.6 4.1 3.0

Real hourly compensation -1.4 -2.1 -1.0 -1.7 -0.9 -1.7 -1.6 -2.4 0.0 -1.0

Unit labor costs 3.3 2.2 3.5 2.4 4.6 4.4 5.2 5.3 2.7 1.8

Percent change, annual rate, first quarter 2011

Productivity -0.6 -0.6 -1.4 -1.4 4.2 4.2 6.8 6.9 3.4 3.4

Output 0.9 0.9 0.3 0.3 7.8 7.8 13.7 13.8 2.1 2.0

Hours 1.5 1.5 1.7 1.7 3.4 3.4 6.4 6.4 -1.3 -1.3

Hourly compensation 5.6 4.2 5.4 4.0 4.1 3.1 4.4 4.9 2.8 -0.8

Real hourly compensation 0.3 -1.0 0.1 -1.2 -1.2 -2.1 -0.8 -0.4 -2.4 -5.8

Unit labor costs 6.2 4.8 6.8 5.4 -0.1 -1.1 -2.3 -1.9 -0.6 -4.0

Table C. Nonfinancial corporations: preliminary second quarter 2011 and revised first quarter 2011

Productivity Output Hours

Hourly 

compensation

Real hourly 

compensation

Unit labor 

costs Unit profits

Implicit price 

deflator

Percent change, annual rate, second quarter 2011

Q to Q 4.4 7.5 3.0 2.5 -1.5 -1.8 28.9 1.8

Y to Y 0.8 3.2 2.3 2.3 -1.0 1.5 10.7 2.0

Percent change, annual rate, first quarter 2011

Revised 2.3 4.5 2.1 4.5 -0.8 2.1 3.7 2.0

Previous 1.4 3.6 2.1 3.1 -2.1 1.6 4.6 2.0
-4- 

TECHNICAL NOTES

Labor Hours: Hours data for the labor productivity and cost measures include hours for all persons 

working in the sector—wage and salary workers, the self-employed and unpaid family workers. The 

primary source of hours and employment data is the BLS Current Employment Statistics (CES) 

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

nonfarm establishments. The CES also provides average weekly paid hours of production and 

nonsupervisory workers in these establishments. Weekly paid hours are adjusted to hours at work using 

data from the National Compensation Survey (NCS). The BLS Hours at Work survey, conducted for 

this purpose, was used for earlier years. The Office of Productivity and Technology estimates average 

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

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

Data from the CPS are used for farm labor, nonfarm proprietors, and nonfarm unpaid family 

workers. Estimates of labor input for government enterprises are derived from the CPS, the CES, and 

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

(BEA) of the Department of Commerce.

The CES measures jobs, counting a person who is employed by two or more establishments at 

each place of employment. In contrast, the CPS features measures of employment that count each person 

only once and classify each person according to his or her primary job; hours worked at all jobs by that 

person accrue to his or her primary job. However, the CPS also collects more detailed information on 

employment and hours worked at primary jobs and all other jobs, separately. The BLS productivity 

measures use the more detailed information on employment and hours to assign all hours worked to the 

correct industrial sector and avoid duplicating hours data from the CES. 

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

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

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

labor inputs. Business output accounted for about 75 percent of the value of GDP in 2010. Nonfarm 

business, which excludes farming, accounted for about 74 percent of GDP in 2010. 

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

constructed by deflating current-dollar industry value of production data from the U.S. Bureau of the 

Census with deflators from the BLS. These deflators are based on data from the BLS producer price 

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

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

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

consistent with annual indexes of manufacturing sector output prepared by BLS. Durables include the 

following 3-digit NAICS industries: wood product manufacturing; nonmetallic mineral product 

manufacturing; primary metal manufacturing; fabricated metal product manufacturing; machinery 

manufacturing; computer and electronic product manufacturing; electrical equipment and appliance 

manufacturing; transportation equipment manufacturing; furniture and related product manufacturing; 

and miscellaneous manufacturing. Nondurables include: food manufacturing; beverage and tobacco 

product manufacturing; textile mills; textile product mills; apparel manufacturing; leather and allied 

product manufacturing; paper manufacturing; printing and related support activities; petroleum and coal 

products manufacturing; chemical manufacturing; and plastics and rubber products manufacturing.

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

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

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

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

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

for about 48 percent of the value of GDP in 2010. 

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 of 

production. Rather, they reflect the joint effects of many influences, including changes in technology; 
-5- 

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 

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 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 2005=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. These index numbers are available at the BLS web site, 

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

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

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.
 - 6- 

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

seasonally adjusted

 Real

 Output Compen- compen- Unit Implicit

Year per hour Hours sation sation Unit nonlabor price

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

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

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

 Percent change from previous quarter at annual rate(5)

2011 II -0.5 r 1.2 r 1.7 3.1 r -1.0 r 3.5 r 1.7 r 2.7 r

 I -1.4 0.3 1.7 5.4 r 0.1 r 6.8 r -2.2 r 2.9 

2010 ANNUAL 4.1 3.9 -0.1 2.0 0.4 -2.0 6.1 1.3 

2010 IV 1.7 3.2 1.5 0.4 -2.2 -1.3 7.3 2.2 

 III 2.5 3.7 1.2 2.2 0.7 -0.3 3.2 1.1 

 II 1.1 4.7 3.6 2.4 2.9 1.2 2.8 1.9 

 I 4.3 5.1 0.8 1.2 0.0 -2.9 9.0 1.8 

2009 ANNUAL 2.4 -4.9 -7.1 1.6 2.0 -0.8 3.1 0.7 

2009 IV 5.3 5.0 -0.3 1.2 -1.6 -3.9 9.0 1.1 

 III 7.0 1.8 -4.9 2.7 -0.9 -4.0 7.3 0.3 

 II 8.0 -1.0 -8.4 6.6 4.6 -1.3 -1.0 -1.2 

 I 1.5 -8.5 -9.8 -2.7 -0.4 -4.1 10.5 1.4 

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

 Percent change from corresponding quarter of previous year

2011 II 0.6 r 2.1 r 1.5 2.7 r -0.6 r 2.1 r 2.4 r 2.3 r

 I 1.0 3.0 2.0 2.6 r 0.4 r 1.6 r 2.7 r 2.0 

2010 ANNUAL 4.1 3.9 -0.1 2.0 0.4 -2.0 6.1 1.3 

2010 IV 2.4 4.2 1.8 1.5 0.3 -0.8 5.5 1.8 

 III 3.3 4.6 1.3 1.7 0.5 -1.5 6.0 1.5 

 II 4.4 4.1 -0.3 1.9 0.1 -2.4 7.0 1.3 

 I 6.2 2.7 -3.3 2.9 0.5 -3.1 6.0 0.5 

2009 ANNUAL 2.4 -4.9 -7.1 1.6 2.0 -0.8 3.1 0.7 

2009 IV 5.4 -0.8 -5.9 1.9 0.4 -3.3 6.3 0.4 

 III 3.3 -5.1 -8.1 2.0 3.7 -1.2 1.8 0.0 

 II 1.3 -6.8 -8.0 2.2 3.2 0.9 0.5 0.8 

 I -0.1 -6.5 -6.4 0.3 0.5 0.4 4.0 1.8 

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

 Indexes 2005=100

2011 II 110.2 r 104.3 r 94.6 118.8 r 103.2 r 107.7 r 118.3 r 111.9 r

 I 110.4 104.0 94.2 117.9 r 103.5 r 106.8 r 117.8 r 111.2 

2010 ANNUAL 110.0 102.5 93.2 115.8 103.6 105.3 116.3 109.6 

2010 IV 110.7 103.9 93.8 116.3 103.5 105.0 118.5 110.4 

 III 110.3 103.1 93.5 116.2 104.1 105.4 116.4 109.7 

 II 109.6 102.1 93.2 115.6 103.9 105.5 115.5 109.4 

 I 109.3 101.0 92.4 114.9 103.1 105.1 114.7 108.9 

2009 ANNUAL 105.7 98.7 93.4 113.5 103.3 107.4 109.6 108.3 

2009 IV 108.2 99.7 92.2 114.6 103.1 105.9 112.3 108.4 

 III 106.8 98.5 92.3 114.2 103.5 107.0 109.9 108.1 

 II 105.0 98.1 93.4 113.5 103.8 108.1 108.0 108.1 

 I 103.0 98.3 95.5 111.7 102.6 108.5 108.2 108.4 

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

See footnotes following Table 6. September 1, 2011

r=revised Source: Bureau of Labor Statistics
 - 7- 

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

seasonally adjusted

 Real

 Output Compen- compen- Unit Implicit

Year per hour Hours sation sation Unit nonlabor price

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

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

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

 Percent change from previous quarter at annual rate(5)

2011 II -0.7 r 1.3 r 2.0 2.7 r -1.4 r 3.3 r 1.5 r 2.6 r

 I -0.6 0.9 1.5 5.6 r 0.3 r 6.2 r -3.1 r 2.2 

2010 ANNUAL 4.1 4.0 -0.1 2.1 0.4 -2.0 5.7 1.1 

2010 IV 2.2 3.8 1.5 0.6 -2.1 -1.6 6.4 1.7 

 III 2.1 3.5 1.4 1.9 0.4 -0.2 2.0 0.7 

 II 1.2 4.6 3.4 2.6 3.1 1.4 3.0 2.0 

 I 4.6 5.2 0.5 1.4 0.2 -3.1 8.8 1.6 

2009 ANNUAL 2.3 -5.1 -7.2 1.6 2.0 -0.7 3.8 1.1 

2009 IV 5.5 5.6 0.1 1.2 -1.5 -4.1 7.7 0.5 

 III 6.5 1.4 -4.8 2.3 -1.3 -3.9 8.1 0.6 

 II 8.0 -1.1 -8.4 6.7 4.7 -1.2 -1.3 -1.2 

 I 1.3 -8.7 -9.9 -2.7 -0.4 -4.0 12.1 2.0 

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

 Percent change from corresponding quarter of previous year

2011 II 0.7 r 2.4 r 1.6 2.7 r -0.7 r 1.9 r 1.6 r 1.8 r

 I 1.2 3.2 1.9 2.6 r 0.4 r 1.4 r 2.0 r 1.7 

2010 ANNUAL 4.1 4.0 -0.1 2.1 0.4 -2.0 5.7 1.1 

2010 IV 2.5 4.3 1.7 1.6 0.4 -0.9 5.0 1.5 

 III 3.3 4.7 1.3 1.8 0.5 -1.5 5.3 1.2 

 II 4.4 4.2 -0.3 1.9 0.1 -2.5 6.9 1.2 

 I 6.2 2.7 -3.2 2.9 0.5 -3.1 5.7 0.4 

2009 ANNUAL 2.3 -5.1 -7.2 1.6 2.0 -0.7 3.8 1.1 

2009 IV 5.3 -0.9 -5.9 1.8 0.3 -3.3 6.5 0.5 

 III 3.0 -5.5 -8.2 2.1 3.7 -0.9 2.5 0.4 

 II 1.2 -7.1 -8.2 2.4 3.4 1.1 1.2 1.2 

 I -0.2 -6.7 -6.5 0.4 0.5 0.5 5.0 2.2 

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

 Indexes 2005=100

2011 II 110.3 r 104.4 r 94.6 r 118.7 r 103.2 r 107.6 r 117.5 r 111.5 r

 I 110.5 104.0 94.2 117.9 r 103.6 r 106.7 r 117.0 r 110.8 

2010 ANNUAL 109.8 102.4 93.2 115.8 103.7 105.4 116.1 109.6 

2010 IV 110.7 103.8 93.8 116.3 103.5 105.1 118.0 110.2 

 III 110.1 102.9 93.5 116.2 104.0 105.6 116.1 109.7 

 II 109.5 102.0 93.1 115.6 103.9 105.6 115.6 109.5 

 I 109.2 100.8 92.4 114.9 103.1 105.3 114.7 109.0 

2009 ANNUAL 105.5 98.5 93.3 113.4 103.3 107.5 109.8 108.4 

2009 IV 107.9 99.6 92.2 114.5 103.1 106.1 112.3 108.5 

 III 106.5 98.2 92.2 114.2 103.5 107.2 110.3 108.4 

 II 104.8 97.9 93.4 113.5 103.8 108.3 108.1 108.2 

 I 102.8 98.2 95.5 111.7 102.6 108.6 108.5 108.6 

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

See footnotes following Table 6. September 1, 2011

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

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

seasonally adjusted

 Real

 Output Compen- compenYear per hour Hours sation sation Unit

and of all of all per hour per hour labor

quarter persons Output persons (1) (2) costs

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

 Percent change from previous quarter at annual rate(5)

2011 II -1.5 r 1.2 r 2.7 r 3.1 r -0.9 r 4.6 r

 I 4.2 7.8 3.4 4.1 r -1.2 r -0.1 r

2010 ANNUAL 6.1 r 6.0 r 0.0 1.6 0.0 -4.2 r

2010 IV 4.9 3.8 -1.0 2.3 -0.4 -2.5 

 III 2.1 5.6 3.4 1.7 0.2 -0.5 

 II 5.2 9.2 3.8 3.8 4.3 -1.3 

 I 4.7 7.8 3.0 -2.7 -3.9 -7.1 

2009 ANNUAL 0.5 r -12.5 r -13.0 4.5 4.9 4.0 r

2009 IV 7.3 r 6.5 r -0.8 3.1 0.3 -3.9 r

 III 13.1 r 7.5 r -4.9 1.4 -2.2 -10.3 r

 II 6.3 r -10.1 r -15.4 7.9 5.9 1.5 r

 I -1.4 r -21.1 r -20.0 0.5 2.9 1.9 r

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

 Percent change from corresponding quarter of previous year

2011 II 2.4 r 4.6 r 2.1 2.8 r -0.6 r 0.4 r

 I 4.1 6.6 2.4 2.9 r 0.7 r -1.1 r

2010 ANNUAL 6.1 r 6.0 r 0.0 1.6 0.0 -4.2 r

2010 IV 4.2 6.6 2.3 1.2 0.0 -2.9 

 III 4.8 r 7.3 r 2.3 1.4 0.2 -3.2 r

 II 7.5 r 7.7 r 0.2 1.4 -0.4 -5.7 r

 I 7.8 r 2.6 r -4.8 2.4 0.0 -5.0 r

2009 ANNUAL 0.5 r -12.5 r -13.0 4.5 4.9 4.0 r

2009 IV 6.2 r -5.1 r -10.6 3.2 1.7 -2.8 r

 III 2.7 r -11.9 r -14.2 4.8 6.6 2.0 r

 II -1.7 r -16.5 r -15.1 5.8 6.9 7.6 r

 I -4.8 r -16.0 r -11.8 4.0 4.2 9.2 r

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

 Indexes 2005=100

2011 II 113.7 r 95.9 r 84.4 r 119.7 r 104.1 r 105.3 r

 I 114.1 r 95.6 r 83.8 118.8 r 104.3 r 104.1 r

2010 ANNUAL 111.3 r 92.0 r 82.7 116.6 104.4 104.8 r

2010 IV 112.9 r 93.8 r 83.1 117.6 104.6 104.2 r

 III 111.6 r 92.9 r 83.3 117.0 104.7 104.8 r

 II 111.0 r 91.7 r 82.6 116.5 104.7 105.0 r

 I 109.6 r 89.7 r 81.8 115.4 103.6 105.3 r

2009 ANNUAL 104.9 r 86.8 r 82.7 114.8 104.5 109.4 r

2009 IV 108.3 r 88.0 r 81.2 116.2 104.6 107.3 r

 III 106.5 r 86.7 r 81.4 115.3 104.5 108.3 r

 II 103.2 r 85.1 r 82.4 114.9 105.1 111.3 r

 I 101.7 r 87.4 r 86.0 112.8 103.6 110.9 r

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

See footnotes following Table 6. September 1, 2011

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

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

seasonally adjusted

 Real

 Output Compen- compenYear per hour Hours sation sation Unit

and of all of all per hour per hour labor

quarter persons Output persons (1) (2) costs

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

 Percent change from previous quarter at annual rate(5)

2011 II -2.7 r 2.2 r 5.0 r 2.4 r -1.6 r 5.2 r

 I 6.8 r 13.7 r 6.4 4.4 r -0.8 r -2.3 r

2010 ANNUAL 7.7 r 7.6 r -0.1 2.1 0.4 -5.2 r

2010 IV 5.3 5.7 0.4 2.2 -0.5 -3.0 

 III 1.7 8.3 6.5 -0.8 -2.2 -2.5 

 II 11.3 14.5 2.8 7.1 7.7 -3.7 

 I 6.2 10.2 3.8 -3.1 -4.3 -8.7 

2009 ANNUAL -4.6 r -19.3 r -15.5 5.7 6.1 10.8 r

2009 IV 6.3 r 5.9 r -0.4 3.8 1.0 -2.3 r

 III 18.2 r 10.3 r -6.6 1.0 -2.6 -14.5 r

 II 2.1 r -18.8 r -20.5 11.6 9.5 9.3 r

 I -10.0 r -31.2 r -23.6 3.1 5.5 14.6 r

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

 Percent change from corresponding quarter of previous year

2011 II 2.7 r 7.4 r 4.5 r 2.0 r -1.3 r -0.7 r

 I 6.2 r 10.5 4.0 3.2 r 1.0 r -2.9 r

2010 ANNUAL 7.7 r 7.6 r -0.1 2.1 0.4 -5.2 r

2010 IV 6.1 9.6 3.4 1.3 0.1 -4.5 

 III 6.3 r 9.7 r 3.2 1.7 0.4 -4.4 r

 II 10.4 r 10.2 r -0.2 2.1 0.3 -7.5 r

 I 8.0 r 1.1 r -6.4 3.2 0.8 -4.5 r

2009 ANNUAL -4.6 r -19.3 r -15.5 5.7 6.1 10.8 r

2009 IV 3.6 r -10.1 r -13.3 4.8 3.3 1.1 r

 III -2.5 r -18.9 r -16.8 5.9 7.7 8.7 r

 II -7.8 r -24.4 r -18.0 7.4 8.4 16.4 r

 I -10.5 r -22.5 r -13.4 4.6 4.8 16.9 r

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

 Indexes 2005=100

2011 II 112.1 r 93.3 r 83.2 r 120.9 r 105.1 r 107.9 r

 I 112.9 r 92.8 r 82.2 120.2 r 105.6 r 106.5 r

2010 ANNUAL 109.0 r 87.3 r 80.1 118.1 105.7 108.3 r

2010 IV 111.0 r 89.8 r 80.9 118.9 105.8 107.1 r

 III 109.6 r 88.6 r 80.9 118.3 105.9 108.0 r

 II 109.1 r 86.9 r 79.6 118.5 106.5 108.6 r

 I 106.2 r 84.0 r 79.0 116.5 104.6 109.7 r

2009 ANNUAL 101.2 r 81.2 r 80.2 115.7 105.3 114.3 r

2009 IV 104.7 r 82.0 r 78.3 117.4 105.7 112.2 r

 III 103.1 r 80.8 r 78.4 116.4 105.5 112.9 r

 II 98.9 r 78.8 r 79.7 116.1 106.2 117.4 r

 I 98.3 r 83.0 r 84.4 112.9 103.8 114.8 r

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

See footnotes following Table 6. September 1, 2011

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

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

seasonally adjusted

 Real

 Output Compen- compenYear per hour Hours sation sation Unit

and of all of all per hour per hour labor

quarter persons Output persons (1) (2) costs

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

 Percent change from previous quarter at annual rate(5)

2011 II 1.3 r 0.3 r -0.9 r 4.1 r 0.0 r 2.7 r

 I 3.4 2.1 r -1.3 2.8 r -2.4 r -0.6 r

2010 ANNUAL 3.9 r 3.9 r 0.1 0.8 -0.9 -3.0 r

2010 IV 5.3 2.0 -3.2 2.2 -0.5 -3.0 

 III 4.2 2.8 -1.3 5.7 4.2 1.4 

 II -1.3 r 4.0 5.4 -1.9 -1.4 -0.5 

 I 3.6 5.4 1.7 -2.2 -3.4 -5.6 

2009 ANNUAL 2.3 r -6.6 r -8.7 2.9 3.2 0.5 r

2009 IV 7.7 r 6.2 r -1.4 1.9 -0.9 -5.4 r

 III 5.3 r 3.0 r -2.2 2.5 -1.1 -2.6 r

 II 4.3 r -2.5 r -6.5 2.8 0.8 -1.5 r

 I 2.8 r -11.2 r -13.6 -3.3 -1.0 -6.0 r

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

 Percent change from corresponding quarter of previous year

2011 II 3.5 1.8 r -1.7 r 3.7 r 0.3 r 0.1 r

 I 2.9 2.7 -0.2 2.1 r 0.0 r -0.7 r 

2010 ANNUAL 3.9 r 3.9 r 0.1 0.8 -0.9 -3.0 r

2010 IV 2.9 3.5 0.6 0.9 -0.3 -2.0 

 III 3.5 r 4.6 r 1.1 0.8 -0.4 -2.6 r

 II 3.8 r 4.6 r 0.8 0.1 -1.7 -3.6 r

 I 5.2 r 3.0 r -2.1 1.2 -1.1 -3.8 r

2009 ANNUAL 2.3 r -6.6 r -8.7 2.9 3.2 0.5 r

2009 IV 5.0 r -1.3 r -6.0 0.9 -0.5 -3.9 r

 III 4.5 r -5.8 r -9.8 3.5 5.2 -1.0 r

 II 0.9 r -9.1 r -9.9 3.7 4.7 2.8 r

 I -1.0 r -9.7 r -8.8 3.3 3.4 4.3 r

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

 Indexes 2005=100

2011 II 111.3 r 96.1 r 86.4 r 117.8 r 102.4 r 105.8 r

 I 110.9 r 96.0 r 86.6 116.6 r 102.4 r 105.1 r

2010 ANNUAL 108.5 r 94.6 r 87.2 114.7 102.7 105.7 r

2010 IV 110.0 r 95.5 r 86.9 115.8 103.0 105.3 r

 III 108.6 r 95.1 r 87.6 115.2 103.2 106.1 r

 II 107.5 r 94.4 r 87.9 113.6 102.1 105.7 r

 I 107.8 r 93.5 r 86.7 114.2 102.5 105.9 r

2009 ANNUAL 104.5 r 91.1 r 87.2 113.8 103.6 109.0 r

2009 IV 106.9 r 92.3 r 86.3 114.8 103.3 107.4 r

 III 104.9 r 90.9 r 86.6 114.3 103.6 108.9 r

 II 103.6 r 90.2 r 87.1 113.5 103.8 109.6 r

 I 102.5 r 90.8 r 88.6 112.8 103.6 110.0 r

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

See footnotes following Table 6. September 1, 2011

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

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

and prices, seasonally adjusted

 Real Unit

 Output Hourly hourly non- Total Unit Implicit

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

and employee Employee sation sation labor costs cost fits deflator

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

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

 Percent change from previous quarter at annual rate(5)

2011 II 4.4 7.5 3.0 2.5 -1.5 -1.8 -3.2 -2.2 28.9 1.8 

 I 2.3 r 4.5 r 2.1 4.5 r -0.8 r 2.1 r 0.7 r 1.7 r 3.7 r 2.0 

2010 ANNUAL 5.3 5.4 0.1 1.9 0.3 -3.2 -9.7 -5.1 40.6 -0.7 

2010 IV -3.1 -1.3 1.9 -0.3 -3.0 2.9 1.8 2.6 -0.8 2.1 

 III -0.1 2.3 2.3 2.6 1.2 2.7 -4.6 0.6 13.3 2.3 

 II -1.2 2.9 4.2 1.4 2.0 2.7 -7.8 -0.4 10.2 0.9 

 I 9.3 10.6 1.2 0.9 -0.4 -7.7 -15.0 -9.9 101.8 -0.5 

2009 ANNUAL 1.6 -6.3 -7.8 2.0 2.4 0.4 5.3 1.8 -9.2 0.6 

2009 IV 10.5 9.9 -0.6 1.6 -1.1 -8.1 -10.4 -8.7 74.1 -2.4 

 III 9.3 3.8 -5.0 3.0 -0.7 -5.7 -13.5 -8.1 52.8 -3.7 

 II 7.2 -3.2 -9.7 7.4 5.4 0.2 -3.3 -0.9 -28.2 -3.7 

 I -8.1 -18.6 -11.5 -6.3 -4.0 2.0 21.4 7.4 -29.7 3.0 

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

 Percent change from corresponding quarter of previous year

2011 II 0.8 3.2 2.3 2.3 -1.0 1.5 -1.4 0.7 10.7 2.0 

 I -0.6 r 2.1 r 2.6 2.0 r -0.2 r 2.6 r -2.5 r 1.1 6.5 r 1.8 

2010 ANNUAL 5.3 5.4 0.1 1.9 0.3 -3.2 -9.7 -5.1 40.6 -0.7 

2010 IV 1.1 3.5 2.4 1.1 -0.1 0.0 -6.6 -1.9 25.7 1.2 

 III 4.5 6.4 1.8 1.6 0.4 -2.7 -9.5 -4.7 44.7 0.1 

 II 6.8 6.8 -0.1 1.7 0.0 -4.8 -11.7 -6.9 56.0 -1.4 

 I 9.1 5.1 -3.6 3.2 0.8 -5.4 -10.7 -7.0 40.1 -2.6 

2009 ANNUAL 1.6 -6.3 -7.8 2.0 2.4 0.4 5.3 1.8 -9.2 0.6 

2009 IV 4.5 -2.6 -6.8 1.3 -0.1 -3.0 -2.3 -2.8 7.6 -1.7 

 III 1.3 -7.6 -8.8 2.5 4.1 1.2 4.9 2.2 -19.2 -0.3 

 II 1.1 -7.7 -8.7 2.9 3.9 1.7 8.7 3.7 -16.2 1.6 

 I -0.3 -7.2 -6.9 1.5 1.6 1.8 10.4 4.3 -7.8 3.0 

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

 Indexes 2005=100

2011 II 111.3 105.4 94.7 118.0 102.6 106.0 106.5 106.2 128.0 108.9 

 I 110.1 r 103.6 r 94.0 117.3 r 103.0 r 106.5 r 107.4 r 106.8 r 120.1 r 108.5 

2010 ANNUAL 110.3 102.2 92.7 115.6 103.5 104.9 108.0 105.7 116.7 107.1 

2010 IV 109.5 102.4 93.5 116.0 103.2 106.0 107.2 106.3 119.0 107.9 

 III 110.4 102.8 93.1 116.1 104.0 105.2 106.7 105.6 119.3 107.3 

 II 110.4 102.2 92.6 115.4 103.7 104.5 107.9 105.5 115.6 106.8 

 I 110.7 101.5 91.6 115.0 103.2 103.8 110.2 105.6 112.8 106.5 

2009 ANNUAL 104.7 97.0 92.6 113.4 103.2 108.4 119.5 111.5 83.0 107.9 

2009 IV 108.3 98.9 91.3 114.7 103.3 105.9 114.7 108.4 94.7 106.6 

 III 105.6 96.6 91.5 114.3 103.6 108.2 117.9 110.9 82.4 107.3 

 II 103.3 95.7 92.7 113.4 103.7 109.8 122.3 113.2 74.1 108.3 

 I 101.5 96.5 95.1 111.4 102.4 109.7 123.3 113.5 80.5 109.3 

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

See footnotes following Table 6. September 1, 2011

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

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 -1.8 and 1.6 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 2011. 

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 1978-2010 is based on the Consumer Price Index research series (CPI-U-RS).

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

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

of persons, and the current surplus of government enterprises.

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

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

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

convenience. Annual changes: Percent change is calculated using annual average indexes to three 

decimal places.

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

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

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

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

consumption adjustments.
-13- 

Appendix table 1.

Manufacturing sector: Productivity, hourly compensation, and unit labor costs

 Real

 Output Compen- compen- 

 per hour Hours sation sation Unit

of all of all per hour per hour labor

 Year persons Output persons (1) (2) costs

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

 Indexes 2005=100

 2010 111.3 r 92.0 r 82.7 116.6 104.4 104.8 r

 2009 104.9 r 86.8 r 82.7 114.8 104.5 109.4 r

 2008 104.4 r 99.2 r 95.1 109.8 99.6 105.2 r

 2007 104.9 r 103.8 r 99.0 105.3 99.2 100.4 r

 2006 100.9 r 101.6 r 100.7 102.0 98.8 101.1 r

 2005 100.0 100.0 100.0 100.0 100.0 100.0 

 2004 95.4 r 96.5 r 101.1 96.8 100.0 101.4 r

 2003 93.3 r 94.9 r 101.7 96.0 101.9 102.9 r

 2002 87.8 r 93.9 r 106.9 88.9 96.5 101.2 r

 2001 81.9 r 94.2 r 115.0 84.3 92.9 102.9 r

 2000 80.4 r 98.9 r 123.1 81.2 92.0 101.0 r

 1999 76.9 r 95.9 r 124.7 75.4 88.3 97.9 r

 1998 73.3 r 92.1 r 125.5 72.2 86.3 98.4 r

 1997 69.5 r 87.4 r 125.9 68.0 82.4 97.8 r

 1996 65.9 r 81.5 r 123.6 66.4 82.2 100.7 r

 1995 63.6 r 78.8 r 123.9 65.2 83.0 102.6 r

 1994 60.8 r 74.9 r 123.1 64.2 83.7 105.6 r

 1993 58.8 r 70.7 r 120.3 62.7 83.4 106.6 r

 1992 57.3 r 68.0 r 118.7 61.3 83.5 106.9 r

 1991 55.2 r 65.8 r 119.3 58.5 81.8 106.0 r

 1990 53.8 r 67.0 r 124.5 55.2 80.0 102.7 r

 1989 52.6 r 67.2 r 127.7 52.7 80.1 100.1 r

 1988 52.1 r 66.1 r 126.9 51.2 81.1 98.2 r

 1987 51.0 r 62.9 r 123.2 49.4 81.2 96.8 r

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

See footnotes following Table 6. September 1, 2011

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

Appendix table 2.

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

 Real

 Output Compen- compen- 

 per hour Hours sation sation Unit

of all of all per hour per hour labor

 Year persons Output persons (1) (2) costs

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

 Indexes 2005=100

 2010 109.0 r 87.3 r 80.1 118.1 105.7 108.3 r

 2009 101.2 r 81.2 r 80.2 115.7 105.3 114.3 r

 2008 106.0 r 100.6 r 94.9 109.4 99.2 103.2 r

 2007 107.7 r 106.6 r 99.0 106.1 99.9 98.5 r

 2006 102.2 r 103.3 r 101.1 102.2 99.0 100.1 r

 2005 100.0 100.0 100.0 100.0 100.0 100.0 

 2004 95.0 r 95.2 r 100.2 97.0 100.2 102.1 r

 2003 93.4 r 93.0 r 99.5 97.3 103.3 104.2 r

 2002 87.1 r 91.6 r 105.1 89.1 96.7 102.3 r

 2001 80.7 r 92.5 r 114.6 84.9 93.7 105.2 r

 2000 79.9 r 98.7 r 123.4 82.6 93.6 103.3 r

 1999 75.8 r 94.2 r 124.2 76.5 89.7 100.9 r

 1998 70.4 r 87.9 r 124.8 73.3 87.7 104.1 r

 1997 65.2 r 81.0 r 124.1 68.9 83.5 105.5 r

 1996 61.0 r 73.6 r 120.6 67.7 83.8 110.9 r

 1995 57.9 r 69.3 r 119.5 66.9 85.2 115.5 r

 1994 54.5 r 64.2 r 117.7 66.5 86.6 121.9 r

 1993 51.9 r 59.2 r 114.0 64.8 86.3 124.9 r

 1992 50.0 r 56.2 r 112.4 63.6 86.7 127.3 r

 1991 47.3 r 53.9 r 114.0 60.3 84.3 127.5 r

 1990 46.4 r 56.1 r 120.7 56.7 82.1 122.1 r

 1989 45.6 r 56.8 r 124.7 54.3 82.5 119.2 r

 1988 45.2 r 56.2 r 124.3 52.7 83.6 116.7 r

 1987 44.2 r 52.9 r 119.7 51.3 84.3 116.0 r

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

See footnotes following Table 6. September 1, 2011

r=revised Source: Bureau of Labor Statistics
-15- 

Appendix table 3.

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

 Real

 Output Compen- compen- 

 per hour Hours sation sation Unit

of all of all per hour per hour labor

 Year persons Output persons (1) (2) costs

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

 Indexes 2005=100

 2010 108.5 r 94.6 r 87.2 114.7 102.7 105.7 r

 2009 104.5 r 91.1 r 87.2 113.8 103.6 109.0 r

 2008 102.1 r 97.5 r 95.4 110.7 100.4 108.4 r

 2007 102.0 r 101.0 r 99.0 103.8 97.8 101.8 r

 2006 99.8 r 99.9 r 100.1 101.5 98.3 101.7 r

 2005 100.0 100.0 100.0 100.0 100.0 100.0 

 2004 95.3 r 98.1 r 102.8 96.5 99.8 101.2 r

 2003 92.0 r 96.9 r 105.3 94.0 99.8 102.2 r

 2002 87.8 r 96.6 r 110.0 88.8 96.4 101.1 r

 2001 82.9 r 96.0 r 115.9 83.0 91.5 100.2 r

 2000 80.9 r 99.1 r 122.5 78.5 89.0 97.0 r

 1999 78.2 r 98.1 r 125.5 73.2 85.7 93.6 r

 1998 77.2 r 97.9 r 126.9 70.2 83.9 90.9 r

 1997 75.2 r 97.0 r 128.9 66.5 80.7 88.4 r

 1996 72.3 r 93.2 r 128.9 64.2 79.6 88.9 r

 1995 70.8 r 93.1 r 131.5 62.7 79.7 88.5 r

 1994 69.1 r 91.4 r 132.4 60.9 79.3 88.2 r

 1993 67.5 r 88.5 r 131.1 59.6 79.2 88.2 r

 1992 66.7 r 86.5 r 129.6 58.0 79.0 86.9 r

 1991 65.6 r 84.2 r 128.4 55.9 78.1 85.2 r

 1990 64.0 r 83.9 r 131.1 53.0 76.7 82.8 r

 1989 62.7 r 83.4 r 132.9 50.0 76.1 79.7 r

 1988 62.2 r 81.7 r 131.4 48.5 76.8 77.9 r

 1987 61.0 r 78.8 r 129.2 46.3 76.1 75.9 r

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

See footnotes following Table 6. September 1, 2011

r=revised Source: Bureau of Labor Statistics