Internet address: http://www.bls.gov/lpc/ USDL 03-411 

Historical, technical TRANSMISSION OF THIS 

 information: (202) 691-5606 MATERIAL IS EMBARGOED 

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

Media contact: (202) 691-5902 THURSDAY, AUG. 7, 2003. 

PRODUCTIVITY AND COSTS 

Second Quarter 2003 

 The Bureau of Labor Statistics of the U.S. Department of Labor reported preliminary 

productivity data—as measured by output per hour of all persons—for the second quarter of 

2003. The preliminary seasonally adjusted annual rates of productivity change in the second 

quarter were: 

 6.1 percent in the business sector and 

 5.7 percent in the nonfarm business sector. 

In the business sector, productivity grew as output rose 3.2 percent and hours dropped 2.7 

percent. A similar pattern occurred in nonfarm businesses, output grew 3.4 percent and hours 

fell 2.2 percent. 

 In manufacturing, the preliminary productivity changes in the second quarter were: 

4.2 percent in manufacturing, 

3.8 percent in durable goods manufacturing, and 

4.4 percent in nondurable goods manufacturing. 

Manufacturing productivity grew 4.2 percent in the second quarter reflecting declines in output 

and hours of 2.1 and 6.1 percent, respectively. Output and hours in manufacturing, which 

includes about 15 percent of U.S. business-sector employment, tend to vary more from quarter to 

quarter than data for the aggregate business and nonfarm business sectors. Second-quarter 

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

The data in this release reflect the annual benchmark revision and other changes to the BLS 

establishment survey data released by BLS on June 6. In addition, revisions to the Current 

Population Survey first released by BLS on Feb. 7 have been fully incorporated into the 

measures. The employment and hours series also incorporate new information on seasonal 

patterns and new hours worked to hours paid ratios. See Revised Measures, page 4. Appendix 

tables 1-4 show revised historical series for the business and nonfarm business sectors. 
2 

Table A. Productivity and costs: Preliminary second-quarter 2003 measures 

(Seasonally adjusted annual rates) 

Sector 

Productivity Output Hours 

Hourly

compensation 

Real

hourly

compensation 

Unit 

labor 

costs 

Percent change from preceding quarter 

Business 6.1 3.2 -2.7 3.9 3.3 -2.0

Nonfarm business 5.7 3.4 -2.2 3.5 2.9 -2.1

Manufacturing 4.2 -2.1 -6.1 5.4 4.8 1.2

 Durable 3.8 -3.1 -6.7 5.2 4.6 1.4 

 Nondurable 4.4 -1.0 -5.2 5.8 5.2 1.3 

Percent change from same quarter a year ago 

Business 4.0 2.9 -1.1 3.1 0.9 -0.9

Nonfarm business 3.8 2.9 -0.9 2.8 0.6 -1.0

Manufacturing 4.8 -0.9 -5.5 5.6 3.4 0.7

 Durable 5.5 -0.7 -5.9 5.2 3.0 -0.2 

 Nondurable 4.1 -1.0 -4.9 6.4 4.1 2.2 

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

from those used in preparing the business and nonfarm business series, and these measures are 

not directly comparable. Output measures for business and nonfarm business are based on 

measures of gross domestic product prepared by the Bureau of Economic Analysis of the U.S. 

Department of Commerce. Quarterly output measures for manufacturing reflect indexes of 

industrial production independently prepared by the Board of Governors of the Federal Reserve 

System. See Technical Notes for further information on data sources (page 10). 

Business 

From the first quarter to the second quarter of 2003, business sector output per hour 

increased at a 6.1-percent annual rate. Output rose 3.2 percent and hours of all persons engaged 

in the sector fell 2.7 percent (seasonally adjusted annual rates). As revised, labor productivity

grew 2.7 percent in the first quarter of 2003, when output increased 1.4 percent and hours 

decreased 1.2 percent (table 1). 
3 

Hourly compensation increased 3.9 percent in the second quarter, less than the 4.8 percent 

gain in the first quarter of 2003 (seasonally adjusted annual rates). This measure includes wages 

and salaries; vacation and other paid leave; bonuses, stock options, and other supplements; 

employer contributions to employee benefit plans; and taxes. Real hourly compensation, which 

takes into account changes in consumer prices, rose at a 3.3-percent annual rate during the 

second quarter of 2003, after rising 0.9 percent during the previous quarter. The second quarter 

increase of 3.3 percent was the largest in the business sector since a 4.7-percent increase in the 

third quarter of 2000. 

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

2.0 percent during the second quarter of 2003 after rising 2.0 percent in the previous quarter. The 

implicit price deflator for the business sector, which reflects changes in both unit labor costs and 

unit nonlabor payments, increased 0.9 percent in the second quarter and 1.6 percent in the first 

quarter of 2003. 

Nonfarm business 

Productivity increased 5.7 percent in the nonfarm business sector during the second 

quarter of 2003, as output rose 3.4 percent and hours of all persons declined 2.2 percent 

(seasonally adjusted annual rates). Output per hour grew at a 2.1 percent annual rate in the first 

quarter of 2003, as output increased 1.4 percent and hours decreased 0.7 percent (table 2). 

Hourly compensation in the nonfarm business sector increased 3.5 percent in second 

quarter 2003, down from the 4.1-percent rise one quarter earlier. When the rise in consumer 

prices is taken into account, real hourly compensation for the second quarter of 2003 rose 2.9 

percent. As in the larger business sector, the second quarter increase in real hourly compensation 

was the largest since the third quarter of 2000, when it rose 5.0 percent. 

Unit labor costs decreased 2.1 percent in the second quarter of 2003, after rising 2.0 

percent during the first quarter. The implicit price deflator for nonfarm business output grew 0.8 

percent in the second quarter, down from the 1.4-percent increase in the previous quarter. 

Manufacturing

Productivity increased 4.2 percent in manufacturing, as output fell 2.1 percent and hours 

of all persons declined 6.1 percent (seasonally adjusted annual rates). In the previous quarter, 

productivity rose 4.9 percent, reflecting decreases in output and hours of 0.7 and 5.3 percent, 

respectively. In durable goods, productivity rose 3.8 percent in the second quarter as output 

dropped 3.1 percent and hours of all persons fell 6.7 percent. In nondurable goods, secondquarter productivity increased by 4.4 as output declined 1.0 percent and hours fell 5.2 percent 

(tables 3, 4, and 5). 
4 

Hourly compensation of all manufacturing workers rose 5.4 percent during the second 

quarter, reflecting growth of 5.2 percent in durable goods and 5.8 percent in nondurable goods. 

When the increase in consumer prices is taken into account, the real hourly compensation of all 

manufacturing workers increased by 4.8 percent in the second quarter, after rising 3.3 percent one 

quarter earlier. 

Unit labor costs in manufacturing grew 1.2 percent in the second quarter. In durable 

goods industries, unit labor costs rose 1.4 percent and in nondurable goods industries, they

increased 1.3 percent. The change in unit labor costs is roughly equal to the change in hourly

compensation less the change in productivity. 

Revised Measures 

Current and previous measures for the first quarter of 2003 for the business, nonfarm 

business, and manufacturing sectors are compared in table B. In the business and nonfarm 

business sectors, productivity was revised up slightly from the numbers reported on June 4. This 

occurred as both output and hours were revised down, hours more than output. Hourly

compensation and unit labor costs grew more than reported on June 4, based on information then 

available. In manufacturing, productivity growth grew substantially faster than reported on 

June 4 as a result of a sharp downward revision to hours. Hourly compensation also shows a 

steep upward revision in the first quarter. Unit labor costs were revised down, reflecting the fact

that the upward revision to productivity was larger than the upward revision to hourly

compensation. 

Table B also shows comparisons of current and previous measures for the fourth quarter 

of 2002. In that quarter, productivity in the business and nonfarm business sectors also was 

revised up, reflecting downward revisions to hours growth. In addition, hourly compensation in 

the fourth quarter was revised down in both sectors reflecting both the changes in hours and new 

compensation data. Reflecting both of these revisions, unit labor costs in both sectors were 

revised down by more than three percentage points and now show very little change in the

quarter. In the manufacturing sector, productivity was revised up with the incorporation of the 

new hours data and now shows an increase of 3.6 percent in the fourth quarter rather than the 

decline reported on June 4. Hourly compensation also was revised up. As in the first quarter 

numbers, unit labor costs show less of an increase than reported earlier as the upward revision to 

hourly compensation was less than that to productivity. 
5 

Table B. Previous and revised productivity and related measures 

Quarterly percent changes at seasonally adjusted annual rates 

Sector 

Productivity Output Hours 

Hourly

compensation 

Real

hourly

compensation 

Unit 

labor 

costs 

First quarter 2003 

Business:

Previous........................ 2.5 2.0 -0.5 3.8 0.0 1.3

Current ......................... 2.7 1.4 -1.2 4.8 0.9 2.0

Nonfarm business:

Previous........................ 1.9 1.8 -0.1 3.4 -0.4 1.5

Current ......................... 2.1 1.4 -0.7 4.1 0.2 2.0

Manufacturing:

 Previous........................ 1.9 -0.7 -2.6 4.5 0.7 2.6 

 Current ......................... 4.9 -0.7 -5.3 7.3 3.3 2.2 

Fourth quarter 2002 

Business:

Previous........................ 0.3 1.7 1.5 3.6 1.6 3.3

Current ......................... 1.5 1.7 0.2 1.6 -0.4 0.1

Nonfarm business:

Previous........................ 0.7 1.7 0.9 3.9 1.9 3.2

 Current ......................... 1.7 1.7 0.0 1.6 -0.4 -0.1 

Manufacturing:

 Previous........................ -0.5 -3.7 -3.2 5.4 3.4 5.9 

 Current ......................... 3.6 -3.7 -7.1 7.4 5.3 3.6 

Hours data for the business and nonfarm business sectors now incorporate all of the 

changes made to the Current Establishment Statistics (CES) data reported on June 6 and the 

Current Population Survey (CPS) data reported on Feb. 7. They also include a new method of 

adjusting hours paid to hours at work for the period following 2000, when the Bureau's last 

Hours at Work Survey was conducted. All of the data incorporate new information on seasonal 

patterns. Appendix tables 1 and 2 present quarterly and annual measures for the business and 

nonfarm business sectors for 1998-2000 and appendix tables 3 and 4 show annual indexes for all 

years beginning in 1947. 

In manufacturing, only revised data for recent years were used to prepare the productivity

and cost measures; these were linked to the SIC-based hours series previously published by the 

BLS. For employees in manufacturing establishments, new information adjusted to the old SIC 

basis was used beginning with the second quarter of 2001. Small revisions to the hours of selfemployed workers that reflect the most recent information on seasonal trends extend back to 

1998. 
6 

The historical revisions to the employment and average weekly hours data from the CES 

change the indexes of employment and hours in the business and nonfarm business sectors for all 

years. The CES data incorporate several major changes, as described in release USDL 03-281 

(ftp://ftp.bls.gov/pub/news.release/History/empsit.06062003.news). These include the 

conversion to NAICS, the completion of the CES sample redesign, and annual benchmark 

revisions. 

The changes to the CPS data used in the productivity measures were primarily related to 

the new levels introduced with the use of weights from the 2000 population census. For the 

purpose of measuring productivity, the revisions to employment and hours in 2000 due to new 

population weights were interpolated back to 1990 (when the previous population census was 

conducted). New information on employment and hours levels for the farm sector was 

introduced beginning with January 2000; the 1947-1999 measures were adjusted to this level. 

Productivity and cost measures were revised to reflect new measures of hours at work to 

hours paid. The Bureau's Hours at Work Survey was discontinued following the collection of 

data for 2000. New measures based on information from the National Compensation Survey, 

which collects data on hours worked and employer leave practices, have been linked to the levels 

beginning with the first quarter of 2001. A description of these measures is available at 

http://www.bls.gov/lpc/lprhws/lprhwhp.pdf. 

Current and previous changes in the annual measures for the business, nonfarm business, 

and manufacturing sectors are compared in table C. In the business and nonfarm business 

sectors, productivity was revised up in both 2001 and 2002, reflecting the downward revisions to 

hours of all persons. The hourly compensation data also were revised upward by a similar 

amount. As a result, unit labor costs in both years are about the same as they were in the 

previously published data. Similarly, in manufacturing, productivity and hourly compensation 

were revised up in 2001 and 2002 as a result of downward revisions to hours. Unit labor costs 

were revised only slightly downward in 2002 and were unchanged in 2001. 
7 

Table C. Previous and revised productivity and related measures 

Annual percent changes 

Sector 

Productivity Output Hours 

Hourly

compensation 

Real

hourly

compensation 

Unit 

labor 

costs 

Annual average 2002 

Business:

 Previous........................ 4.8 2.7 -2.0 2.5 0.9 -2.2 

 Current ......................... 5.3 2.7 -2.5 2.8 1.2 -2.3 

Nonfarm business:

 Previous........................ 4.8 2.7 -2.0 2.4 0.8 -2.3 

 Current ......................... 5.4 2.7 -2.5 2.8 1.2 -2.4 

Manufacturing:

 Previous........................ 4.5 -1.1 -5.4 3.3 1.6 -1.2 

 Current ......................... 6.4 -1.1 -7.0 5.0 3.4 -1.3 

Annual average 2001 

Business:

 Previous........................ 1.1 -0.2 -1.3 2.9 0.2 1.8 

 Current ......................... 2.0 -0.2 -2.1 3.8 1.0 1.8 

Nonfarm business:

 Previous........................ 1.1 -0.1 -1.2 2.7 -0.1 1.6 

 Current ......................... 1.9 -0.1 -2.0 3.6 0.8 1.7 

Manufacturing:

 Previous........................ 0.8 -4.9 -5.6 1.5 -1.2 0.8 

 Current ......................... 1.6 -4.9 -6.4 2.4 -0.4 0.8 

Revised measures: Nonfinancial Corporations 

Productivity and cost measures for the first quarter for nonfinancial corporations also 

were revised to incorporate more recent information than was available on June 4. Productivity

was revised up, reflecting both an upward revision to output and a larger drop in employee hours. 

Hourly compensation was revised up. However, the upward revision to productivity was much 

larger than the upward revision to hourly compensation and unit labor costs were revised down. 

Unit profits also were revised up (table D). 

Productivity and cost measures for the fourth quarter of 2002 also were revised to 

incorporate more recent information on output, hours, and employee compensation. Fourth 

quarter 2003 productivity did not rise as rapidly as reported on June 4, reflecting a downward 

revision to output that was much larger than the downward revision to hours. Hourly

compensation also was revised down and unit labor costs show a larger decline than originally

reported. 
8 

The hours measures for most employees of nonfinancial corporations have been revised 

only beginning with the second quarter of 2001. The output and compensation measures for 

nonfinancial corporations are not yet available on a NAICS basis so BLS is continuing to use the 

levels reported on an SIC basis for the months prior to April 2001. In order to capture the CES 

benchmark to the Covered Employment and Wages (CEW), CES data for April 2001 through 

March 2003 reported on a NAICS basis are converted back to the SIC using bridge tables 

published for first quarter 2001 CEW data. In addition, estimates of hours for employees 

working on incorporated farms were revised back to 1958. The corporate farm sector has 

historically been small and the changes in productivity and cost movements due to the 

incorporation of this revision are very small. As a result of the various revisions, hours in the 

nonfinancial corporate sector now show larger drops in 2001 and 2002 than previously published. 

The new measures are shown in table 6. 

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

Quarterly percent changes at seasonally adjusted annual rates 

Productivity Output Hours

Hourly

compensation

Real

hourly

compensation

Unit 

labor 

costs

Unit 

profits

Implicit 

price 

deflator

First quarter 2003 

Previous 2.9 2.4 -0.5 4.7 0.8 1.7 2.2 1.0

Current 4.5 2.8 -1.6 5.4 1.5 0.9 7.6 0.7

Fourth quarter 2002 

Previous 5.0 4.5 -0.5 4.9 2.8 -0.1 20.8 0.9

Current 3.6 2.8 -0.8 2.6 0.6 -1.0 22.8 0.9

Upcoming changes

Historical measures of output and compensation for all sectors, along with the conversion 

of the manufacturing and nonfinancial corporate sectors from the 1987 Standard Industrial 

Classification (SIC) to the 2002 North American Industry Classification System (NAICS), will 

be prepared following the release of the revised national income and product accounts in 

December. On January 7, 2004, the BLS will post revised productivity and cost measures 

through fourth quarter, 2002 on its web site. More specific information will be announced later 

this year. 
9 

Next release date

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

Sept. 4, 2003. Revised second-quarter measures for business, nonfarm business, and 

manufacturing will be released at that time, along with preliminary measures for nonfinancial 

corporations. 
10 

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. The Office of Productivity and 

Technology estimates average weekly paid hours 

of nonproduction and supervisory workers. 

Weekly paid hours are adjusted to hours at work 

using the BLS Hours at Work survey, conducted 

for this purpose. 

Data from the BLS Current Population 

Survey (CPS) are used for farm labor; in the 

nonfarm sector, the National Income and Product 

Accounts (NIPA) prepared by the Bureau of 

Economic Analysis (BEA) of the Department of 

Commerce and the CPS are used to measure labor 

input for government enterprises, proprietors, and 

unpaid family workers. 

Output: Business sector output is an annualweighted index constructed after excluding from 

gross domestic product (GDP) the following

outputs: General government, nonprofit

institutions, paid employees of private households, 

and the rental value of owner-occupied dwellings. Corresponding exclusions also are made in labor 

inputs. Business output accounted for about 77 

percent of the value of GDP in 1996. Nonfarm 

business, which also excludes farming, accounted 

for about 76 percent of GDP in 1996. 

Annual indexes for manufacturing and its 

durable and nondurable goods components are 

constructed by deflating current-dollar industry

value of production data from the U.S. Bureau of 

the Census with deflators from the BEA. These 

deflators are based on data from the BLS producer

price program and other sources. The industry

shipments are aggregated using annual weights, 

and intrasector transactions are removed. 

Quarterly manufacturing output measures are 

based on the index of industrial production 

prepared monthly by the Board of Governors of the 

Federal Reserve System adjusted to be consistent 

with annual indexes of manufacturing sector 

output prepared by BLS. Durables include the 

following 2-digit SIC industries: Primary metal 

industries; fabricated metal products; nonelectrical 

machinery; industrial and commercial machinery

and computer equipment; electronic and other 

electrical equipment; transportation equipment; 

instruments; lumber and lumber products; 

furniture and fixtures; stone, clay, and glass and 

concrete products; and miscellaneous 

manufactures. Nondurables include: Food and 

kindred products, tobacco products, textile mill 

products, apparel products, paper and allied 

products, printing and publishing, chemicals and 

chemical products, petroleum refining and related 

industries, rubber and plastic products, and leather 

and leather products. 

Nonfinancial corporate output is an annualweighted 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; employees of private households; the 

rental value of owner-occupied dwellings; 

unincorporated business; and those corporations 

which are depository institutions, nondepository

institutions, security and commodity brokers, insurance carriers, regulated investment offices, 

small business investment offices, and real estate 

investment trusts. Nonfinancial corporations 

accounted for about 53 percent of the value of 

GDP in 1996. 

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; 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. 

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. 

 
11 

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

 and prices, seasonally adjusted 

 Real 

 Year Output per Hours Compensa- compensa- Unit Unit non- Implicit 

 and hour of of all tion per tion per labor labor pay- price 

 quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4) 

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

 Indexes 1992=100 

 2001 I r117.4 140.4 r119.6 r137.4 r111.9 r117.1 r112.0 115.2 

 II r117.8 139.4 r118.3 r138.2 r111.6 r117.3 r113.3 115.8 

 III r118.8 139.1 r117.1 r139.1 r112.1 r117.1 r115.1 116.4 

 IV r121.3 140.3 r115.6 r139.8 r112.8 r115.2 r117.0 115.9 

 ANNUAL r118.8 139.8 r117.6 r138.6 r112.1 r116.7 r114.3 115.8 

 2002 I r123.9 142.3 r114.9 r141.0 r113.4 r113.8 r119.7 116.0 

 II r124.1 142.5 r114.8 r142.4 r113.5 r114.7 r118.8 116.2 

 III r125.9 144.4 r114.6 r143.1 r113.5 r113.6 r120.9 116.3 

 IV r126.4 145.0 r114.7 r143.7 r113.4 r113.7 r122.1 116.8 

 ANNUAL r125.1 143.5 r114.7 r142.5 r113.5 113.9 120.4 116.3 

 2003 I r127.2 r145.5 r114.3 r145.4 r113.7 r114.2 r122.3 r117.2 

 II 129.1 146.6 113.6 146.8 114.6 113.7 124.0 117.5 

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

 Percent change from previous quarter at annual rate(5) 

 2001 I r-0.5 -1.0 r-0.5 r4.6 r0.8 r5.1 r0.3 3.4 

 II r1.5 -2.8 r-4.3 r2.3 r-0.9 r0.8 r4.6 2.2 

 III r3.3 -0.9 r-4.1 r2.5 r1.6 r-0.8 6.8 1.8 

 IV r8.7 3.5 r-4.8 r2.1 r2.7 r-6.1 r6.7 -1.6 

 ANNUAL r2.0 -0.2 r-2.1 r3.8 r1.0 1.8 r2.3 2.0 

 2002 I r8.7 5.9 r-2.6 r3.5 r2.2 r-4.8 r9.6 0.3 

 II r0.8 0.6 r-0.2 r4.0 r0.4 r3.1 r-3.2 0.7 

 III r5.9 5.3 r-0.6 r2.1 r0.0 r-3.6 r7.6 0.5 

 IV r1.5 1.7 r0.2 r1.6 r-0.4 r0.1 r3.8 1.5 

 ANNUAL r5.3 2.7 r-2.5 r2.8 r1.2 r-2.3 r5.3 0.4 

 2003 I r2.7 r1.4 r-1.2 r4.8 r0.9 r2.0 r0.8 r1.6 

 II 6.1 3.2 -2.7 3.9 3.3 -2.0 5.8 0.9 

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

 Percent change from corresponding quarter of previous year 

 2001 I r2.2 1.4 r-0.8 r4.9 r1.4 2.6 1.4 2.2 

 II r1.1 -0.7 r-1.7 r4.8 r1.4 r3.7 r-0.5 2.1 

 III r1.7 -1.0 r-2.6 r3.3 r0.6 r1.6 r3.7 2.3 

 IV r3.2 -0.3 r-3.4 r2.9 r1.0 r-0.3 r4.6 1.4 

 ANNUAL r2.0 -0.2 r-2.1 r3.8 r1.0 1.8 r2.3 2.0 

 2002 I r5.5 1.4 r-3.9 r2.6 r1.4 -2.8 r6.9 0.7 

 II r5.4 2.3 r-2.9 r3.0 r1.7 r-2.2 r4.9 0.3 

 III r6.0 3.8 r-2.1 r2.9 r1.3 r-2.9 r5.0 0.0 

 IV r4.2 3.4 r-0.8 r2.8 r0.5 r-1.4 r4.3 0.7 

 ANNUAL r5.3 2.7 r-2.5 r2.8 r1.2 r-2.3 r5.3 0.4 

 2003 I r2.7 r2.2 r-0.5 r3.1 r0.2 r0.4 r2.2 1.1 

 II 4.0 2.9 -1.1 3.1 0.9 -0.9 4.5 1.1 

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

 See footnotes following Table 6. August 7, 2003 

 r=revised Source: Bureau of Labor Statistics 

 
12 

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

 and prices, seasonally adjusted 

 Real 

 Year Output per Hours Compensa- compensa- Unit Unit non- Implicit 

 and hour of of all tion per tion per labor labor pay- price 

 quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4) 

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

 Indexes 1992=100 

 2001 I r116.9 140.7 r120.3 r136.7 r111.3 r117.0 r113.5 115.7 

 II r117.4 139.7 r119.0 r137.4 r111.0 r117.1 r114.9 116.3 

 III r118.3 139.4 r117.8 r138.2 r111.4 r116.8 r116.8 116.8 

 IV r120.7 140.4 r116.3 r138.9 r112.1 r115.1 r119.0 116.5 

 ANNUAL r118.3 140.1 r118.4 r137.8 r111.4 r116.5 r116.1 116.3 

 2002 I r123.4 142.5 r115.5 r140.2 r112.8 r113.6 r121.5 116.4 

 II r123.7 142.9 r115.5 r141.5 r112.9 r114.4 r121.2 116.8 

 III r125.5 144.7 r115.3 r142.2 r112.8 r113.3 r123.1 116.9 

 IV r126.0 145.3 r115.3 r142.8 r112.7 r113.3 r124.3 117.3 

 ANNUAL r124.7 143.9 r115.4 r141.7 r112.8 113.6 122.5 116.9 

 2003 I r126.7 r145.8 r115.1 r144.2 r112.8 r113.8 r124.5 117.7 

 II 128.5 147.0 114.4 145.5 113.6 113.2 126.2 117.9 

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

 Percent change from previous quarter at annual rate(5) 

 2001 I r-0.4 -0.9 r-0.5 r4.3 r0.5 r4.7 r0.8 3.3 

 II r1.6 -2.7 r-4.3 r2.0 r-1.2 0.3 r5.0 2.0 

 III r3.4 -0.8 r-4.1 r2.4 r1.5 r-0.9 r6.6 1.7 

 IV r8.3 2.9 r-5.0 r2.1 r2.7 r-5.7 r7.7 -1.0 

 ANNUAL r1.9 -0.1 r-2.0 r3.6 r0.8 r1.7 r2.4 1.9 

 2002 I r9.3 6.2 r-2.9 r3.7 r2.4 r-5.2 r8.7 -0.2 

 II r1.0 0.9 r0.0 r3.9 r0.3 r2.9 r-0.9 1.4 

 III r5.9 5.2 r-0.6 r2.0 r-0.2 r-3.7 r6.6 0.1 

 IV r1.7 1.7 r0.0 r1.6 r-0.4 r-0.1 r3.9 1.4 

 ANNUAL r5.4 2.7 r-2.5 r2.8 r1.2 r-2.4 r5.6 0.5 

 2003 I r2.1 r1.4 r-0.7 r4.1 r0.2 r2.0 r0.4 r1.4 

 II 5.7 3.4 -2.2 3.5 2.9 -2.1 5.6 0.8 

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

 Percent change from corresponding quarter of previous year 

 2001 I r2.0 1.4 r-0.6 r4.5 r1.1 r2.5 1.4 2.1 

 II r1.1 -0.6 r-1.6 r4.6 r1.1 3.5 -0.3 2.1 

 III r1.7 -0.8 r-2.5 r3.0 r0.3 r1.3 r3.7 2.2 

 IV r3.2 -0.4 r-3.5 r2.7 r0.9 -0.5 r5.0 1.5 

 ANNUAL r1.9 -0.1 r-2.0 r3.6 r0.8 r1.7 r2.4 1.9 

 2002 I r5.6 1.3 r-4.0 r2.5 r1.3 -2.9 r7.0 0.6 

 II r5.4 2.3 r-3.0 r3.0 r1.7 r-2.3 r5.4 0.5 

 III r6.1 3.8 r-2.1 r2.9 r1.3 -3.0 5.4 0.1 

 IV r4.4 3.5 r-0.9 r2.8 r0.5 r-1.6 r4.5 0.7 

 ANNUAL r5.4 2.7 r-2.5 r2.8 r1.2 r-2.4 r5.6 0.5 

 2003 I r2.6 r2.3 r-0.3 r2.9 r0.0 r0.2 r2.5 1.1 

 II 3.8 2.9 -0.9 2.8 0.6 -1.0 4.1 0.9 

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

 See footnotes following Table 6. August 7, 2003 

 r=revised Source: Bureau of Labor Statistics 

 
13 

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

 seasonally adjusted 

 Real 

 Year Output per Hours Compensa- compensa- Unit 

 and hour of of all tion per tion per labor 

 quarter all persons Output persons hour (1) hour (2) costs 

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

 Indexes 1992=100 

 2001 I 135.2 134.9 99.8 132.0 107.5 97.6 

 II r135.8 132.8 r97.8 r133.6 r107.9 98.4 

 III r137.8 131.1 r95.1 r135.0 r108.8 97.9 

 IV r139.9 129.1 r92.3 r136.7 r110.3 97.7 

 ANNUAL r137.1 132.0 r96.3 r134.3 r108.6 97.9 

 2002 I r142.9 129.5 r90.6 r138.3 r111.3 96.8 

 II r144.8 130.6 r90.2 r140.5 r112.0 r97.0 

 III r147.2 131.6 r89.4 r141.3 r112.1 96.0 

 IV r148.5 130.3 r87.8 r143.9 r113.6 r96.9 

 ANNUAL r145.8 130.5 r89.5 r141.0 r112.2 r96.7 

 2003 I r150.3 130.1 r86.6 r146.4 r114.5 r97.4 

 II 151.9 129.4 85.2 148.4 115.9 97.7 

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

 Percent change from previous quarter at annual rate(5) 

 2001 I -2.1 -7.6 r-5.7 1.6 -2.1 3.7 

 II r1.8 -6.2 r-7.9 r5.0 r1.7 3.1 

 III r6.1 -4.9 r-10.3 r4.1 r3.2 r-1.8 

 IV r6.0 -6.1 r-11.5 r5.1 r5.7 r-0.9 

 ANNUAL r1.6 -4.9 r-6.4 r2.4 r-0.4 0.8 

 2002 I r9.1 1.2 r-7.2 r5.0 r3.7 r-3.8 

 II r5.5 3.5 r-1.9 r6.3 r2.7 r0.8 

 III r6.7 3.0 r-3.4 r2.5 r0.3 -3.9 

 IV r3.6 -3.7 r-7.1 r7.4 r5.3 r3.6 

 ANNUAL r6.4 -1.1 r-7.0 r5.0 r3.4 r-1.3 

 2003 I r4.9 -0.7 r-5.3 r7.3 r3.3 r2.2 

 II 4.2 -2.1 -6.1 5.4 4.8 1.2 

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

 Percent change from corresponding quarter of previous year 

 2001 I 1.2 -2.4 -3.6 0.5 -2.9 -0.7 

 II r0.7 -5.0 r-5.7 r3.4 r0.0 r2.7 

 III r1.8 -5.9 r-7.5 r2.1 r-0.6 r0.3 

 IV r2.9 -6.2 r-8.9 r3.9 r2.1 1.0 

ANNUAL r1.6 -4.9 r-6.4 r2.4 r-0.4 0.8

2002 I r5.7 -4.0 r-9.2 r4.8 r3.6 -0.9

 II r6.7 -1.7 r-7.8 r5.1 r3.8 r-1.4 

 III r6.8 0.3 r-6.1 r4.7 r3.1 -2.0 

 IV r6.2 1.0 r-4.9 r5.3 r3.0 r-0.9 

ANNUAL r6.4 -1.1 r-7.0 r5.0 r3.4 r-1.3

2003 I r5.2 0.5 r-4.4 r5.9 r2.9 r0.7

f Labor Statistics

 II 4.8 -0.9 -5.5 5.6 3.4 0.7 

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

 See footnotes following Table 6. August 7, 2003 

r=revised Source: Bureau o

 
14 

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

 seasonally adjusted 

 Real 

 Year Output per Hours Compensa- compensa- Unit 

 and hour of of all tion per tion per labor 

 quarter all persons Output persons hour (1) hour (2) costs 

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

 Indexes 1992=100 

 2001 I 149.3 158.3 106.0 129.4 105.3 r86.6 

 II r149.7 154.9 r103.5 r131.3 r106.1 87.7 

 III r151.7 151.8 r100.1 r132.0 r106.4 87.0 

 IV r153.7 148.6 r96.7 r134.3 r108.4 r87.4 

 ANNUAL r151.0 153.4 r101.5 r131.7 r106.5 87.2 

 2002 I r158.1 149.4 r94.5 r135.6 r109.1 85.8 

 II r160.7 151.2 r94.1 r138.2 r110.3 86.0 

 III r163.9 152.6 r93.1 r138.8 r110.1 r84.7 

 IV r166.5 151.5 r90.9 r141.7 r111.9 r85.1 

 ANNUAL r162.3 151.2 r93.2 r138.6 r110.3 85.4 

 2003 I r167.9 r151.3 r90.1 r143.6 r112.3 r85.6 

 II 169.4 150.1 88.6 145.5 113.6 85.9 

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

 Percent change from previous quarter at annual rate(5) 

 2001 I r-2.0 -8.9 r-7.0 3.1 -0.6 r5.2 

 II r1.0 -8.2 r-9.1 r6.2 r2.9 5.1 

 III r5.4 -7.9 r-12.6 r2.0 r1.1 -3.3 

 IV r5.5 -8.0 r-12.8 r7.2 r7.8 r1.6 

 ANNUAL r0.9 -6.3 r-7.1 r1.8 r-0.9 0.9 

 2002 I r11.9 2.1 r-8.7 r3.9 r2.6 r-7.1 

 II r6.7 4.9 r-1.7 r8.1 r4.4 r1.2 

 III r8.3 3.8 r-4.2 r1.6 r-0.5 -6.2 

 IV r6.5 -2.9 r-8.9 r8.7 r6.6 r2.1 

 ANNUAL r7.4 -1.5 r-8.3 r5.2 r3.6 r-2.1 

 2003 I r3.3 r-0.5 r-3.7 r5.5 r1.6 r2.2 

 II 3.8 -3.1 -6.7 5.2 4.6 1.4 

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

 Percent change from corresponding quarter of previous year 

 2001 I 0.5 -2.9 -3.3 -1.1 -4.3 -1.6 

 II r-0.2 -6.3 r-6.1 r3.0 r-0.4 3.2 

 III r0.9 -7.8 r-8.6 r1.1 r-1.6 r0.2 

 IV r2.4 -8.2 r-10.4 r4.6 r2.7 2.1 

 ANNUAL r0.9 -6.3 r-7.1 r1.8 r-0.9 0.9 

 2002 I r5.9 -5.6 r-10.8 r4.8 r3.6 -1.0 

 II r7.3 -2.4 r-9.1 r5.3 r3.9 r-1.9 

 III r8.1 0.5 r-7.0 r5.2 r3.5 -2.7 

 IV r8.3 1.9 r-5.9 r5.5 r3.2 r-2.6 

 ANNUAL r7.4 -1.5 r-8.3 r5.2 r3.6 r-2.1 

 2003 I r6.2 r1.3 r-4.7 r5.9 r3.0 r-0.2 

 II 5.5 -0.7 -5.9 5.2 3.0 -0.2 

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

 See footnotes following Table 6. August 7, 2003 

 r=revised Source: Bureau of Labor Statistics 

 
15 

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

 seasonally adjusted 

 Real 

 Year Output per Hours Compensa- compensa- Unit 

 and hour of of all tion per tion per labor 

 quarter all persons Output persons hour (1) hour (2) costs 

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

 Indexes 1992=100 

 2001 I 123.1 112.7 91.6 134.7 109.7 109.4 

 II r123.8 111.7 r90.2 r135.8 r109.7 109.7 

 III r125.6 111.3 r88.6 r138.6 r111.7 110.3 

 IV r127.4 110.1 r86.4 r139.2 r112.4 r109.3 

 ANNUAL r125.0 111.5 r89.2 r137.0 r110.8 109.7 

 2002 I r129.1 110.2 r85.4 r141.6 r113.9 109.7 

 II r130.4 110.8 r84.9 r142.9 r113.9 109.5 

 III r131.9 111.4 r84.4 r144.3 r114.5 109.4 

 IV r131.8 110.1 r83.5 r146.4 r115.5 r111.0 

 ANNUAL r130.8 110.6 r84.6 r143.8 r114.5 r109.9 

 2003 I r134.3 r109.9 r81.9 r149.8 r117.2 r111.6 

 II 135.7 109.6 80.8 152.0 118.7 112.0 

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

 Percent change from previous quarter at annual rate(5) 

 2001 I -2.5 -6.0 -3.6 -0.8 -4.4 1.8 

 II r2.3 -3.8 r-5.9 r3.3 r0.0 r1.0 

 III r5.8 -1.4 r-6.7 r8.4 r7.4 r2.5 

 IV r6.0 -4.0 r-9.4 r1.9 r2.5 -3.8 

 ANNUAL r2.3 -3.2 r-5.3 r3.6 r0.8 1.3 

 2002 I r5.4 0.3 r-4.9 r7.1 r5.8 1.6 

 II r4.2 1.9 r-2.1 r3.5 r0.0 r-0.6 

 III r4.6 2.3 r-2.2 r4.2 r2.0 -0.4 

 IV r-0.2 -4.6 r-4.4 r5.7 r3.7 r6.0 

 ANNUAL r4.7 -0.8 r-5.2 r4.9 r3.3 r0.2 

 2003 I r7.6 r-0.6 r-7.6 r9.8 r5.8 r2.0 

 II 4.4 -1.0 -5.2 5.8 5.2 1.3 

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

 Percent change from corresponding quarter of previous year 

 2001 I 2.1 -1.9 -3.9 3.1 -0.3 1.0 

 II r1.7 -3.4 r-5.1 r4.1 r0.7 2.4 

 III r2.5 -3.5 r-5.9 r4.1 r1.3 1.5 

 IV r2.8 -3.8 r-6.4 r3.1 r1.3 0.3 

 ANNUAL r2.3 -3.2 r-5.3 r3.6 r0.8 1.3 

 2002 I r4.8 -2.2 r-6.7 r5.1 r3.9 r0.3 

 II r5.3 -0.8 r-5.8 r5.2 r3.9 r-0.1 

 III r5.0 0.1 r-4.7 r4.2 r2.5 r-0.8 

 IV r3.5 -0.1 r-3.4 r5.1 r2.8 r1.6 

 ANNUAL r4.7 -0.8 r-5.2 r4.9 r3.3 r0.2 

 2003 I r4.0 r-0.3 r-4.1 r5.8 r2.8 r1.7 

 II 4.1 -1.0 -4.9 6.4 4.1 2.2 

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

 See footnotes following Table 6. August 7, 2003 

 r=revised Source: Bureau of Labor Statistics 

 
16 

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

 and prices, seasonally adjusted 

 

 Output Hourly Real Unit Total Unit Implicit 

 Year per all- compen- hourly Unit non- unit pro- price 

 and employee Employee sation compen- labor labor costs fits deflator 

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

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

 Indexes 1992=100 

 2001 I r118.7 147.9 r124.7 r131.2 r106.8 110.6 111.6 110.8 93.1 109.3 

 II r120.0 147.8 r123.1 r132.6 r107.1 110.4 113.5 111.3 95.4 109.9 

 III r121.3 147.7 r121.7 r133.8 r107.8 110.3 115.5 111.7 97.9 110.5 

 IV r124.5 149.6 r120.2 r134.7 r108.7 108.2 114.1 109.8 107.6 109.6 

 ANNUAL r121.1 148.2 r122.4 r133.0 r107.6 109.9 113.7 110.9 98.5 109.8 

 2002 I r126.0 150.8 r119.7 r135.9 r109.4 107.9 114.0 109.5 107.6 109.4 

 II r127.7 152.8 r119.6 r137.3 r109.5 107.5 114.5 109.4 107.8 109.3 

 III r128.7 153.4 r119.2 r138.2 r109.7 107.4 115.4 109.6 104.6 109.1 

 IV r129.9 r154.5 r118.9 r139.1 r109.8 r107.1 r115.2 109.3 r110.1 109.4 

 ANNUAL r128.1 r152.9 r119.4 r137.7 r109.6 107.5 r114.8 r109.4 r107.5 109.3 

 2003 I r131.3 r155.5 r118.4 r141.0 r110.2 r107.3 r114.6 r109.3 r112.2 109.6 

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

 Percent change from previous quarter at annual rate(5) 

 2001 I -2.6 -3.3 -0.7 -1.2 r-4.7 1.4 10.1 3.7 -20.2 1.7 

 II r4.7 -0.5 r-5.0 r4.3 r1.0 -0.4 7.1 1.6 10.0 2.2 

 III r4.4 -0.3 r-4.5 r3.7 r2.8 -0.6 7.2 1.5 10.8 2.2 

 IV r10.8 5.4 r-4.9 r2.7 r3.3 -7.3 -4.9 -6.7 46.1 -3.3 

 ANNUAL r2.0 -0.1 r-2.1 r3.1 r0.3 1.0 6.5 2.5 -11.7 1.2 

 2002 I r5.0 3.3 r-1.6 r3.7 r2.5 -1.2 -0.2 -0.9 -0.2 -0.8 

 II r5.5 5.3 r-0.3 r4.2 r0.6 -1.3 1.7 -0.5 0.9 -0.3 

 III r3.1 1.7 r-1.4 r2.7 r0.5 -0.5 3.1 0.5 -11.2 -0.5 

 IV r3.6 r2.8 r-0.8 r2.6 r0.6 r-1.0 r-0.6 r-0.9 r22.8 0.9 

 ANNUAL r5.8 r3.1 r-2.5 r3.5 r1.8 r-2.2 r1.0 -1.3 r9.1 -0.5 

 2003 I r4.5 r2.8 r-1.6 r5.4 r1.5 r0.9 r-1.9 r0.1 r7.6 r0.7 

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

 Percent change from corresponding quarter of previous year 

 2001 I 0.9 0.4 -0.4 3.5 0.1 2.6 6.7 3.7 -22.0 1.3 

 II r1.5 -0.1 r-1.6 r3.9 r0.5 2.3 6.8 3.5 -19.7 1.3 

 III r1.6 -1.1 r-2.7 r2.7 r0.0 1.1 7.8 2.9 -10.6 1.7 

 IV r4.2 0.3 r-3.8 r2.4 r0.5 -1.8 4.7 0.0 9.2 0.7 

 ANNUAL r2.0 -0.1 r-2.1 r3.1 r0.3 1.0 6.5 2.5 -11.7 1.2 

 2002 I r6.2 1.9 r-4.0 r3.6 r2.4 -2.4 2.2 -1.2 15.5 0.0 

 II r6.4 3.4 r-2.8 r3.6 r2.3 -2.6 0.9 -1.7 13.0 -0.6 

 III 6.1 3.9 -2.1 3.3 1.7 -2.6 -0.1 -1.9 6.9 -1.3 

 IV r4.3 r3.2 -1.0 r3.3 r1.0 r-1.0 r1.0 -0.4 r2.4 -0.2 

 ANNUAL r5.8 r3.1 r-2.5 r3.5 r1.8 r-2.2 r1.0 -1.3 r9.1 -0.5 

 2003 I r4.2 r3.1 r-1.0 r3.7 r0.8 r-0.5 r0.6 r-0.2 r4.3 r0.2 

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

 See footnotes following Table 6. August 7, 2003 

 r=revised Source: Bureau of Labor Statistics 

 
17 

SOURCES: Output data are from the Bureau of Economic Analysis and the Census Bureau of 

the U.S. Department of Commerce; the Bureau of Labor Statistics, U.S. Department of Labor; 

and the Federal Reserve Board. Compensation and hours data are from the Bureau of Labor 

Statistics and the Bureau of Economic Analysis. 

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

information becomes available. The measures are first published within 40 days of the close of 

the reference period; revisions appear 30 days later, and second revisions after an additional 60 

days. In the business sector, the third publication (second revision) of a quarterly index of output 

per hour of all persons has differed from the initial value by between –1.4 and +1.5 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 2003. 

Footnotes, Tables 1-6

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

private benefit plans. Except for nonfinancial corporations, where there are no selfemployed, data also include an estimate of wages, salaries, and supplemental payments for 

the self-employed. 

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

(CPI-U). The trend from 1978-2002 is based on the Consumer Price Index research series 

(CPI-U-RS). 

(3) Unit nonlabor payments include profits, capital consumption allowances, interest, rental 

income of persons, and indirect taxes. 

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

(5) Quarterly changes: Percent change compounded at annual rate from the original data rather 

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

(6) Unit nonlabor costs include capital consumption allowances, interest, rental income of 

persons, and indirect taxes. For nonfinancial corporations, rental income of persons is 

zero by definition. 

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

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

adjustments..

 
18 

 

Appendix table 1. Business sector: Revised productivity, hourly compensation, unit labor costs, and prices, 

seasonally adjusted 

 Real 

 Year Output per Hours Compensa- compensa- Unit Unit non- Implicit 

 and hour of of all tion per tion per labor labor pay- price 

 quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4) 

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

 Indexes 1992=100 

 1998 I r109.6 126.7 r115.6 r117.3 r103.5 r107.0 r115.9 110.3 

 II r109.6 127.3 r116.2 r118.8 r104.5 r108.4 r113.9 110.4 

 III r110.2 128.7 r116.8 r120.2 r105.2 r109.0 r113.5 110.7 

 IV r111.5 131.3 r117.8 r121.4 r105.9 r108.9 r114.1 110.8 

 ANNUAL r110.2 128.5 r116.6 r119.4 r104.8 r108.4 r114.3 110.6 

 1999 I r112.3 132.4 r117.9 r123.9 r107.6 r110.3 r112.7 111.2 

 II r112.1 133.0 r118.7 r123.9 r106.9 r110.6 r113.0 111.5 

 III r113.1 134.9 r119.4 r125.0 r107.0 r110.6 r113.9 111.8 

 IV r114.7 137.7 r120.1 r126.5 r107.5 r110.3 r115.2 112.1 

 ANNUAL r113.0 134.5 r119.0 r124.8 r107.2 r110.4 r113.7 111.6 

 2000 I r114.8 138.4 r120.6 r131.1 r110.3 r114.1 r110.4 112.8 

 II r116.6 140.3 r120.3 r131.9 r110.1 r113.1 r113.8 113.4 

 III r116.8 140.4 r120.2 r134.6 r111.4 r115.3 r111.0 113.7 

 IV r117.5 140.7 r119.7 r135.9 r111.7 115.6 r111.9 114.3 

 ANNUAL r116.5 140.0 r120.1 r133.5 r111.0 r114.6 r111.8 113.5 

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

 Percent change from previous quarter at annual rate(5) 

 1998 I r5.2 7.5 2.2 r7.4 r6.7 2.1 r-2.1 0.5 

 II r-0.2 1.9 r2.2 r5.1 r3.9 5.3 r-7.0 0.5 

 III r2.4 4.4 r1.9 r4.8 r2.9 2.3 r-1.3 0.9 

 IV r4.5 8.2 r3.5 r4.1 r2.4 -0.4 2.0 0.5 

 ANNUAL 2.6 4.9 2.2 5.5 4.0 2.8 r-2.3 0.8 

 1999 I 3.1 3.4 r0.3 r8.3 r6.8 r5.1 r-4.8 1.3 

 II r-0.8 2.1 r3.0 r0.2 r-2.7 1.1 0.9 1.0 

 III r3.6 5.9 r2.2 r3.5 r0.4 -0.1 3.3 1.2 

 IV 5.8 8.4 2.4 r4.9 r1.9 r-0.8 r4.5 1.1 

 ANNUAL r2.5 4.7 r2.1 r4.5 2.4 1.9 r-0.6 1.0 

 2000 I r0.5 2.2 r1.7 r15.2 r11.0 r14.6 r-15.5 2.4 

 II r6.3 5.4 r-0.8 r2.6 r-0.8 -3.5 12.9 2.2 

 III r0.7 0.4 r-0.3 r8.5 r4.7 7.8 -9.6 1.1 

 IV r2.6 0.9 r-1.7 r3.9 r0.9 r1.2 r3.2 1.9 

 ANNUAL r3.1 4.1 r0.9 r6.9 r3.5 3.7 -1.7 1.7 

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

 Percent change from corresponding quarter of previous year 

 1998 I 3.4 5.7 2.2 4.8 3.4 1.4 r0.6 1.1 

 II 2.3 4.4 2.0 5.8 r4.4 3.5 r-3.4 0.8 

 III 2.0 4.2 2.2 5.9 4.4 3.9 r-4.1 0.7 

 IV r2.9 5.5 r2.5 5.3 4.0 2.3 -2.1 0.6 

 ANNUAL 2.6 4.9 2.2 5.5 4.0 2.8 r-2.3 0.8 

 1999 I r2.4 4.5 r2.0 5.6 4.0 r3.1 r-2.8 0.8 

 II 2.3 4.5 2.2 4.3 2.3 2.0 -0.8 0.9 

 III 2.6 4.9 2.2 r4.0 1.7 1.4 r0.3 1.0 

 IV r2.9 4.9 r2.0 r4.2 r1.5 1.3 0.9 1.2 

 ANNUAL r2.5 4.7 r2.1 r4.5 2.4 1.9 r-0.6 1.0 

 2000 I r2.2 4.6 2.3 r5.8 r2.5 3.5 -2.0 1.4 

 II r4.0 5.4 1.3 r6.4 r3.0 2.3 0.8 1.7 

 III 3.3 4.1 0.7 7.7 4.1 4.3 -2.5 1.7 

 IV r2.5 2.2 r-0.3 r7.4 r3.9 r4.8 r-2.8 1.9 

 ANNUAL r3.1 4.1 r0.9 r6.9 r3.5 3.7 -1.7 1.7 

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

 See footnotes following Table 6. August 7, 2003 

 Source: Bureau of Labor Statistics 
19 

 

Appendix table 2. Nonfarm business sector: Revised productivity, hourly compensation, unit labor costs, and 

prices, seasonally adjusted 

 Real 

 Year Output per Hours Compensa- compensa- Unit Unit non- Implicit 

 and hour of of all tion per tion per labor labor pay- price 

 quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4) 

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

 Indexes 1992=100 

 1998 I r109.5 127.0 r116.0 r117.0 r103.2 r106.8 r117.1 110.5 

 II r109.6 127.7 r116.5 r118.5 104.3 r108.1 r115.1 110.6 

 III r110.2 129.0 r117.1 119.9 105.0 r108.8 r114.7 111.0 

 IV 111.4 131.6 r118.2 121.1 105.6 r108.7 r115.3 111.1 

 ANNUAL r110.2 128.8 r116.9 119.1 104.5 r108.1 r115.5 110.8 

 1999 I r112.0 132.7 118.4 r123.3 r107.1 r110.0 r114.1 111.5 

 II r111.8 133.3 r119.3 123.4 106.4 r110.4 r114.6 111.9 

 III r112.7 135.3 r120.0 r124.4 r106.5 r110.4 r115.6 112.3 

 IV r114.5 138.0 r120.6 r126.2 r107.2 r110.2 r116.9 112.6 

 ANNUAL r112.8 134.8 r119.6 124.3 106.8 r110.3 r115.3 112.1 

 2000 I r114.6 138.7 r121.0 130.8 110.1 r114.2 r112.0 113.4 

 II r116.1 140.5 r121.0 r131.4 r109.7 r113.1 r115.3 113.9 

 III r116.4 140.6 r120.8 r134.2 r111.0 r115.3 r112.6 114.3 

 IV r117.0 141.0 r120.5 135.3 111.2 115.6 r113.3 114.8 

 ANNUAL r116.1 140.2 r120.7 133.0 110.6 r114.6 r113.3 114.1 

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

 Percent change from previous quarter at annual rate(5) 

 1998 I r5.0 7.8 r2.7 r7.2 r6.6 r2.1 r-1.8 0.6 

 II r0.3 2.1 r1.7 r5.5 r4.3 5.1 -6.8 0.4 

 III r2.0 4.3 r2.3 r4.7 r2.8 2.7 -1.3 1.2 

 IV r4.4 8.3 r3.7 r3.9 2.2 r-0.5 r2.1 0.5 

 ANNUAL 2.6 5.0 2.4 5.4 3.9 2.7 r-2.0 0.9 

 1999 I 2.4 3.3 0.9 r7.5 r5.9 r4.9 r-4.1 1.4 

 II r-0.9 1.9 r2.8 r0.3 r-2.6 1.3 r1.8 1.5 

 III r3.5 6.0 r2.4 r3.5 r0.4 0.0 r3.8 1.4 

 IV 6.3 8.3 1.9 r5.7 r2.6 r-0.6 r4.4 1.3 

 ANNUAL r2.3 4.6 r2.3 r4.3 2.2 2.0 -0.2 1.2 

 2000 I r0.3 1.9 r1.6 r15.4 r11.3 r15.1 r-15.7 2.7 

 II r5.7 5.4 r-0.2 r1.9 r-1.4 -3.6 r12.3 1.9 

 III r0.8 0.2 r-0.6 r8.8 r5.0 r7.9 -9.1 1.4 

 IV r2.2 1.1 r-1.0 r3.3 r0.4 r1.1 r2.6 1.6 

 ANNUAL r3.0 4.0 1.0 7.0 r3.6 3.9 r-1.8 1.8 

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

 Percent change from corresponding quarter of previous year 

 1998 I 3.2 5.7 2.4 r4.7 3.2 1.4 r1.1 1.3 

 II r2.3 4.5 r2.1 r5.7 4.2 r3.4 -3.0 0.8 

 III 2.0 4.4 2.4 5.9 4.4 r3.9 r-3.9 0.8 

 IV 2.9 5.6 2.6 5.3 r4.0 2.3 -2.0 0.7 

 ANNUAL 2.6 5.0 2.4 5.4 3.9 2.7 r-2.0 0.9 

 1999 I 2.3 4.5 2.1 5.4 3.8 3.0 r-2.6 0.9 

 II 1.9 4.4 2.4 r4.1 2.0 2.1 -0.4 1.1 

 III r2.3 4.8 r2.5 3.8 r1.4 1.4 0.8 1.2 

 IV r2.8 4.8 r2.0 r4.2 r1.5 1.4 1.4 1.4 

 ANNUAL r2.3 4.6 r2.3 r4.3 2.2 2.0 -0.2 1.2 

 2000 I 2.3 4.5 r2.2 r6.1 r2.8 3.7 -1.8 1.7 

 II r3.9 5.4 r1.4 r6.5 r3.1 2.5 r0.6 1.8 

 III r3.2 3.9 0.7 r7.8 4.3 4.5 -2.6 1.8 

 IV r2.2 2.2 r-0.1 7.2 r3.7 4.9 -3.1 1.9 

 ANNUAL r3.0 4.0 1.0 7.0 r3.6 3.9 r-1.8 1.8 

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

 See footnotes following Table 6. August 7, 2003 

 Source: Bureau of Labor Statistics 
20 

 

 Appendix table 3. Business sector: Productivity, hourly compensation, unit labor costs, and prices 

 Indexes 1992=100 

 Real 

 Output per Hours Compensa- compensa- Unit Unit non- Implicit 

 hour of of all tion per tion per labor labor pay- price 

 Year all persons Output persons hour (1) hour (2) costs ments (3) deflator (4) 

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

 1947 r32.7 20.7 r63.3 r7.0 r40.6 21.4 18.9 20.5 

 1948 r34.2 21.8 r63.8 r7.6 r40.7 22.2 r20.9 21.7 

 1949 r34.9 21.6 r61.7 r7.7 r41.9 22.0 r20.7 21.5 

 1950 r37.8 23.7 r62.6 r8.2 r44.2 21.8 21.8 21.8 

 1951 r38.9 25.2 r64.7 r9.0 r44.9 23.2 24.0 23.5 

 1952 r40.1 26.0 r64.8 r9.6 r46.8 23.9 23.4 23.7 

 1953 r41.5 27.2 r65.7 r10.2 r49.4 24.5 22.9 23.9 

 1954 r42.4 26.9 r63.4 r10.5 r50.6 24.8 22.8 24.1 

 1955 r44.1 29.0 r65.8 r10.8 r52.1 24.4 24.3 24.4 

 1956 r44.1 29.5 r66.8 r11.5 r54.7 26.0 23.7 25.2 

 1957 r45.5 30.0 r65.9 r12.2 r56.4 26.9 24.4 26.0 

 1958 r46.8 29.4 r62.9 r12.8 r57.3 27.3 25.0 26.5 

 1959 r48.6 31.9 r65.5 r13.3 r59.2 27.4 25.5 26.7 

 1960 r49.5 32.5 r65.6 r13.9 r60.7 28.0 r25.1 27.0 

 1961 r51.3 33.1 r64.5 r14.4 r62.5 28.1 25.5 27.2 

 1962 r53.6 35.2 r65.7 r15.1 r64.6 28.1 26.3 27.4 

 1963 r55.7 36.8 r66.1 r15.6 r66.1 28.0 26.9 27.6 

 1964 r57.6 39.2 r68.0 16.2 67.7 r28.1 27.5 27.9 

 1965 r59.7 41.9 r70.3 16.8 69.1 28.2 r28.7 28.4 

 1966 r62.1 44.8 r72.1 17.9 71.7 28.9 r29.4 29.1 

 1967 r63.5 45.6 r71.9 19.0 r73.6 29.9 r29.8 29.9 

 1968 r65.5 47.9 r73.2 20.4 76.0 r31.2 r30.7 31.0 

 1969 r65.8 49.4 r75.1 21.9 r77.2 r33.2 r31.0 32.4 

 1970 r67.1 49.4 r73.6 r23.6 78.6 35.1 r31.7 33.9 

 1971 r70.0 51.3 r73.3 25.0 80.1 35.8 r34.5 35.3 

 1972 72.2 54.7 75.7 26.6 r82.3 36.8 r35.9 36.5 

 1973 74.5 58.5 r78.6 r28.8 r84.1 r38.7 r37.8 38.4 

 1974 73.2 57.6 r78.7 r31.6 r83.1 43.2 r40.1 42.1 

 1975 75.8 57.0 r75.3 r34.8 r83.9 r46.0 r46.2 46.1 

 1976 r78.4 60.9 r77.7 r37.9 r86.2 r48.3 r48.7 48.5 

 1977 r79.7 64.3 r80.7 r40.9 r87.4 r51.3 r51.7 51.4 

 1978 r80.6 68.3 r84.8 r44.5 r88.9 r55.2 r55.0 55.1 

 1979 r80.5 70.6 r87.7 r48.8 r89.1 r60.6 r58.5 59.8 

 1980 r80.3 69.8 r86.9 r54.1 r88.9 r67.3 r61.7 65.2 

 1981 r81.9 71.7 r87.6 r59.2 r89.0 r72.3 r69.4 71.2 

 1982 81.6 69.6 85.2 r63.7 r90.5 r78.1 r70.5 75.3 

 1983 r84.5 73.3 r86.7 r66.3 r90.4 r78.5 r76.6 77.8 

 1984 r86.8 79.7 r91.8 r69.2 r90.7 r79.7 r80.6 80.0 

 1985 r88.5 83.1 r93.8 r72.6 r92.1 r82.0 r82.4 82.2 

 1986 r91.2 86.1 r94.4 r76.4 r95.2 r83.8 r83.0 83.5 

 1987 r91.6 89.2 r97.3 r79.3 r95.6 r86.6 r83.8 85.6 

 1988 93.0 92.9 r99.9 r83.4 r97.0 r89.7 r85.8 88.3 

 1989 93.9 96.2 r102.5 r85.7 r95.5 r91.2 r92.0 91.5 

 1990 r95.3 97.6 r102.5 90.7 96.3 r95.2 r94.0 94.8 

 1991 r96.4 96.5 r100.1 95.0 r97.4 r98.6 r97.1 98.1 

 1992 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 

 1993 100.5 103.1 102.6 r102.4 r99.9 101.9 102.5 102.2 

 1994 r101.7 108.1 r106.3 r104.4 r99.7 102.6 106.4 104.0 

 1995 r102.3 111.5 r108.9 r106.5 r99.4 104.1 109.4 106.0 

 1996 r105.1 116.4 r110.7 r109.9 r99.8 r104.6 r113.2 107.7 

 1997 r107.4 122.5 r114.0 r113.2 r100.7 r105.4 r117.0 109.7 

 1998 r110.2 128.5 r116.6 r119.4 r104.8 r108.4 r114.3 110.6 

 1999 r113.0 134.5 r119.0 r124.8 r107.2 r110.4 r113.7 111.6 

 2000 r116.5 140.0 r120.1 r133.5 r111.0 r114.6 r111.8 113.5 

 2001 r118.8 139.8 r117.6 r138.6 r112.1 r116.7 r114.3 115.8 

 2002 r125.1 143.5 r114.7 r142.5 r113.5 113.9 120.4 116.3 

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

 See footnotes following Table 6. August 7, 2003 

 Source: Bureau of Labor Statistics 
21 

 

 Appendix table 4. Nonfarm business sector: Productivity, hourly compensation, unit labor costs, and prices 

 Indexes 1992=100 

 Real 

 Output per Hours Compensa- compensa- Unit Unit non- Implicit 

 hour of of all tion per tion per labor labor pay- price 

 Year all persons Output persons hour (1) hour (2) costs ments (3) deflator (4) 

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

 1947 r37.3 20.3 r54.4 r7.4 r43.1 19.9 r17.9 19.2 

 1948 r38.3 21.2 r55.3 r8.1 r43.4 r21.1 r19.5 20.5 

 1949 r39.6 21.0 r53.1 r8.3 r45.3 21.0 r20.1 20.7 

 1950 r42.2 23.1 r54.8 r8.8 r47.3 r20.9 r21.0 20.9 

 1951 r43.3 24.9 r57.4 r9.6 r47.7 22.1 r22.6 22.3 

 1952 r44.1 25.6 r58.0 r10.1 r49.3 r22.9 22.4 22.7 

 1953 r45.1 26.9 r59.5 r10.7 r51.7 23.6 22.4 23.2 

 1954 r46.0 26.4 r57.4 r11.0 r53.0 23.9 22.5 23.4 

 1955 r47.9 28.6 r59.8 r11.4 r55.1 23.8 r23.8 23.8 

 1956 r47.5 29.1 r61.2 r12.1 r57.7 25.5 r23.2 24.7 

 1957 r48.8 29.7 r60.9 r12.8 r59.0 26.3 24.0 25.4 

 1958 r49.8 29.1 r58.3 r13.3 r59.7 26.7 r24.3 25.9 

 1959 r51.8 31.6 r61.0 r13.8 r61.6 26.7 r25.1 26.2 

 1960 r52.4 32.1 r61.3 r14.5 r63.2 r27.6 r24.5 26.5 

 1961 r54.2 32.8 r60.5 r15.0 r64.8 27.6 25.0 26.7 

 1962 r56.6 35.0 r61.9 r15.6 r66.7 27.5 r25.9 26.9 

 1963 r58.6 36.6 r62.6 r16.1 r68.1 27.5 26.5 27.1 

 1964 r60.4 39.1 r64.8 r16.6 r69.4 r27.5 27.3 27.5 

 1965 r62.2 41.9 r67.3 17.2 r70.6 27.6 r28.3 27.8 

 1966 r64.5 44.9 r69.6 18.2 r72.6 28.2 r29.0 28.5 

 1967 r65.6 45.7 r69.6 19.3 r74.7 r29.3 r29.5 29.4 

 1968 r67.7 48.1 r71.1 20.7 r76.9 r30.5 30.4 30.5 

 1969 r67.8 49.5 r73.1 r22.1 r77.9 32.6 r30.6 31.9 

 1970 r68.8 49.5 r71.9 23.7 r79.0 34.4 31.3 33.3 

 1971 r71.6 51.4 r71.7 r25.2 r80.6 35.2 r34.0 34.7 

 1972 r74.0 54.9 r74.2 r26.8 r82.9 36.2 r35.0 35.8 

 1973 r76.3 58.9 r77.2 r29.0 r84.5 r37.9 r35.4 37.0 

 1974 r75.1 58.0 r77.2 r31.8 r83.5 r42.3 r38.1 40.8 

 1975 r77.1 57.0 r73.9 r35.0 r84.3 r45.4 r44.7 45.1 

 1976 r79.9 61.1 r76.5 r38.0 r86.5 r47.5 r47.6 47.6 

 1977 r81.2 64.6 r79.5 r41.1 r87.8 r50.6 r50.7 50.6 

 1978 r82.2 68.8 r83.6 r44.7 r89.4 r54.4 r53.5 54.1 

 1979 r81.9 70.9 r86.6 r49.0 r89.5 r59.8 r56.6 58.7 

 1980 r81.7 70.2 r85.9 r54.3 r89.3 r66.4 r60.6 64.3 

 1981 r82.7 71.6 r86.6 r59.5 r89.6 r72.0 r67.8 70.5 

 1982 r82.3 69.4 r84.3 r64.0 r91.0 r77.8 r69.6 74.8 

 1983 r85.9 73.8 r85.9 r66.7 r91.0 r77.7 r76.4 77.2 

 1984 r87.7 80.0 r91.1 r69.5 r91.2 r79.3 r79.6 79.4 

 1985 r88.9 83.0 r93.4 r72.8 r92.4 r81.9 r81.8 81.9 

 1986 r91.6 86.2 r94.1 r76.6 r95.5 r83.6 r82.6 83.2 

 1987 r91.9 89.3 r97.1 r79.5 r95.8 r86.5 r83.4 85.4 

 1988 r93.4 93.3 r99.9 r83.4 r97.0 r89.3 r85.6 87.9 

 1989 r94.1 96.5 r102.5 r85.6 r95.4 r91.0 r91.5 91.2 

 1990 95.3 97.8 r102.6 90.5 r96.1 r94.9 r93.7 94.5 

 1991 r96.5 96.6 r100.1 95.0 r97.4 r98.4 r97.2 98.0 

 1992 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 

 1993 100.5 103.3 102.9 102.2 99.7 101.7 103.0 102.2 

 1994 101.8 108.2 r106.3 104.3 r99.6 102.5 106.9 104.1 

 1995 r102.7 111.8 r108.9 r106.5 99.4 103.7 110.4 106.1 

 1996 r105.3 116.7 r110.8 109.8 r99.7 r104.3 r113.4 107.6 

 1997 r107.4 122.7 r114.2 r113.0 r100.5 105.2 r117.9 109.8 

 1998 r110.2 128.8 r116.9 119.1 104.5 r108.1 r115.5 110.8 

 1999 r112.8 134.8 r119.6 124.3 106.8 r110.3 r115.3 112.1 

 2000 r116.1 140.2 r120.7 133.0 110.6 r114.6 r113.3 114.1 

 2001 r118.3 140.1 r118.4 r137.8 r111.4 r116.5 r116.1 116.3 

 2002 r124.7 143.9 r115.4 r141.7 r112.8 113.6 122.5 116.9 

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

 See footnotes following Table 6. August 7, 2003 

 Source: Bureau of Labor Statistics