Transmission of material in this release is embargoed until USDL-10-0588 

8:30 a.m. (EDT) Thursday, May 6, 2010 

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

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

Chart 1. Output per hour, nonfarm business, all persons, 

2005Q1 – 2010Q1

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

2005 2006 2007 2008 2009 2010

From previous quarter, annual rate

From same quarter a year ago

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

2005 2006 2007 2008 2009 2010

From previous quarter, annual rate

From same quarter a year ago

Percent change Percent change

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

2005Q1 – 2010Q1

PRODUCTIVITY AND COSTS

First Quarter 2010, Preliminary 

Nonfarm business sector labor productivity increased at a 3.6 percent annual rate during the first 

quarter of 2010, the U.S. Bureau of Labor Statistics reported today, with output rising 4.4 percent and 

hours worked rising 0.8 percent. (All quarterly percent changes in this release are seasonally adjusted 

annual rates.) From the first quarter of 2009 to the first quarter of 2010, output increased 3.1 percent 

while hours fell 3.0 percent, yielding an increase in productivity of 6.3 percent (chart 1, tables A and 2). 

This gain in productivity from the same quarter a year ago was the largest since output per hour 

increased 7.0 percent over the four-quarter period ending in the first quarter of 1962. 

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

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

Unit labor costs in nonfarm businesses fell 1.6 percent in the first quarter of 2010, as the 3.6 percent 

increase in productivity outpaced a 1.9 percent gain in hourly compensation. Unit labor costs fell 3.7 

percent over the last four quarters, as the 6.3 percent increase in productivity outpaced a 2.3 percent rise 

in hourly compensation (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. 
-2- 

Manufacturing sector productivity grew 2.5 percent in the first quarter of 2010, as output rose 7.5 

percent and hours worked increased 4.9 percent, the first increase in hours since the second quarter of 

2007. Gains in productivity, output, and hours were each larger in the durable goods sector than in the 

nondurable goods sector (tables A, 3, 4 and 5). Unit labor costs in manufacturing declined 3.7 percent 

in the first quarter of 2010 and fell 6.1 percent over the last four quarters. The four-quarter decline was 

the largest in the series, which begins in the first quarter of 1988. 

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 (page 4). 

Fourth quarter and annual 2009 measures of productivity and costs were announced for the nonfinancial 

corporate sector (tables C and 6). Output per employee hour rose 8.2 percent for the fourth quarter of 

2009 as output and hours rose 8.5 percent and 0.3 percent, respectively. 

Revised measures 

Revised measures of real hourly compensation for all sectors for 2005 onward reflect revisions in the 

consumer price series based on new and revised data from the BLS Office of Prices and Living 

Conditions. Output data for the manufacturing sectors incorporates revised output indexes constructed 

by BLS using data from the U.S. Department of Commerce. Accordingly, manufacturing output, 

productivity and unit labor costs were revised back to 1987, the first year in the series (appendix tables 

1-3). Table B presents previous and revised productivity and related measures for the major sectors: 

business, nonfarm business and manufacturing, for the fourth quarter and annual averages of 2009. 

In the fourth quarter of 2009, nonfarm business productivity growth was revised down to 6.3 percent, 

reflecting a 0.6 percentage point downward revision to output and a 0.1 percentage point upward 

revision to hours. After revision, unit labor costs fell 5.6 percent—a smaller decline than previously 

reported. In the manufacturing sector, fourth-quarter productivity growth was revised down slightly to 

6.5 percent. 

Full historical annual and quarterly measures are available on the productivity and costs home page: 

http://www.bls.gov/lpc/#data

___________ 

The revised Productivity and Costs press release for first-quarter 2010 is scheduled to be released 

Thursday, June 3, 2010 at 8:30 a.m. (EDT). 

Beginning with the Productivity and Costs news release scheduled for August 10, 2010, index series will 

be rebased from 1992=100 to 2005=100. Also, the presentation of the data in tables 1-6 will be 

reformatted. In the new format, the three panels in each table will be rearranged. The first panel will 

present percent changes from the previous quarter, the second will show percent changes from the 

corresponding quarter of the previous year, and the third will show indexes. Also, all data will be 

presented in reverse chronological order, listing the most recent data first. 
-3- 

Table A. Preliminary first-quarter 2010 measures: percent change from previous quarter at 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 3.6 6.3 3.0 6.3 2.5 7.5 3.8 9.0 2.2 5.0

Output 4.4 3.1 4.1 3.0 7.5 3.3 10.5 3.1 4.8 3.4

Hours 0.8 -3.0 1.1 -3.1 4.9 -3.9 6.4 -5.4 2.5 -1.6

Hourly compensation 1.9 2.3 1.7 2.4 -1.2 0.9 -1.2 1.6 -1.5 0.0

Real hourly compensation 0.4 -0.1 0.2 -0.1 -2.7 -1.5 -2.7 -0.8 -3.0 -2.4

Unit labor costs -1.6 -3.7 -1.3 -3.7 -3.7 -6.1 -4.9 -6.8 -3.7 -4.8

Table B. Revised and previous measures for: fourth quarter and annual averages 2009

Sector

 Nonfarm

 Business Business Manufacturing

 Durable

 Manufacturing

 Nondurable

 Manufacturing

Revised Previous Revised Previous Revised Previous Revised Previous Revised Previous

Percent change, annual rate, fourth quarter 2009

Productivity 6.3 6.9 6.6 7.2 6.5 6.6 7.1 6.8 6.1 6.4

Output 7.0 7.6 6.9 7.5 5.6 5.5 6.4 5.7 4.9 5.4

Hours 0.7 0.6 0.3 0.3 -0.8 -1.0 -0.7 -1.0 -1.2 -0.9

Hourly compensation 0.4 0.6 0.4 0.6 -0.3 -0.1 0.2 0.6 -1.2 -1.4

Real hourly compensation -2.3 -2.8 -2.2 -2.7 -3.0 -3.5 -2.5 -2.8 -3.8 -4.7

Unit labor costs -5.6 -5.9 -5.8 -6.2 -6.4 -6.3 -6.4 -5.8 -6.9 -7.3

Percent change, annual average 2009

Productivity 3.7 3.8 3.8 3.8 1.8 1.8 -1.6 -1.6 3.0 3.0

Output -3.6 -3.6 -3.5 -3.5 -11.1 -11.1 -16.4 -16.5 -5.6 -5.5

Hours -7.1 -7.1 -7.0 -7.0 -12.6 -12.6 -15.1 -15.1 -8.3 -8.3

Hourly compensation 1.9 2.0 1.9 1.9 4.4 4.4 5.3 5.4 3.4 3.3

Real hourly compensation 2.3 2.3 2.3 2.3 4.8 4.8 5.7 5.7 3.7 3.7

Unit labor costs -1.7 -1.7 -1.8 -1.8 2.6 2.6 7.0 7.1 0.3 0.3

Table C. Nonfinancial corporations: preliminary fourth-quarter and annual average 2009 productivity and cost measures

Productivity Output Hours

Hourly 

compensation

Real hourly 

compensation

Unit labor 

costs Unit profits

Implicit price 

deflator

Percent change, annual rate, fourth quarter 2009

Q to Q 8.2 8.5 0.3 0.2 -2.4 -7.4 28.7 -2.9

Y to Y 3.4 -3.2 -6.4 0.6 -0.9 -2.8 15.1 -0.2

Percent change, annual average 2009

2009 1.9 -5.8 -7.5 2.2 2.6 0.2 1.5 1.6
-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 77 percent of the value of GDP in 2005. Nonfarm 

business, which excludes farming, accounted for about 76 percent of GDP in 2005.

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 50 percent of the value of GDP in 2005.

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 
-5- 

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

capital investment; level of output; utilization of capacity, energy, and materials; the organization of 

production; managerial skill; and the characteristics and effort of the work force. 

Labor Compensation: Estimates of labor compensation by major sector, required for measures of 

hourly compensation and unit labor costs, are based primarily on employee compensation data from the 

NIPA, prepared by the BEA. The compensation of employees in general government, nonprofit 

institutions and private households are subtracted from compensation of domestic employees to derive 

employee compensation for the business sector. The labor compensation of proprietors cannot be 

explicitly identified and must be estimated. This is done by assuming that proprietors have the same 

hourly compensation as employees in the same sector. The quarterly labor productivity and cost 

measures do not contain estimates of compensation for unpaid family workers. 

Unit Labor Costs: The measures of unit labor costs in this release describe the relationship between 

compensation per hour and productivity, or real output per hour, and can be used as an indicator of 

inflationary pressure on producers. Increases in hourly compensation increase unit labor costs; labor 

productivity increases offset compensation increases and lower unit labor costs. 

Presentation of the data: The quarterly data in this release are presented in three ways; as index 

number series where 1992=100, as percent changes from the corresponding quarter of the previous year, 

and as percent changes from the previous quarter presented at a compound annual rate. Annual data are 

presented both as index number series and percent changes from the previous year. 

 The index numbers and rates of change reported in the productivity and costs news release are 

rounded to one decimal place. All percent changes in this release and on the BLS web site are 

calculated using index numbers to three decimal places. These index numbers are available at the BLS 

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

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

Information in this release will be made available to sensory-impaired individuals upon request. 

Voice phone: 202-691-5606; Federal Relay Service number: 1-800-877-8339. 
-6- 

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

2008 I 142.8 171.7 120.3 180.3 r121.3 126.3 141.7 132.1

 II 143.8 172.2 119.8 181.0 r120.2 125.8 143.8 132.5

 III 144.3 170.6 118.2 183.6 r120.1 127.2 145.3 134.0

 IV 145.0 167.4 115.4 185.4 r124.3 127.8 143.4 133.6

 ANNUAL 144.0 170.5 118.4 182.5 121.4 126.8 143.6 133.0

2009 I 145.3 163.6 112.6 183.5 r123.6 126.2 148.0 134.3

 II 148.0 163.2 110.3 186.8 r125.4 126.2 147.7 134.2

 III 150.9 164.1 108.7 186.8 r124.2 123.8 151.9 134.3

 IV r153.4 r166.9 r108.8 r187.0 r123.5 r121.9 155.3 r134.4

 ANNUAL r149.4 r164.5 r110.1 r186.0 r124.2 r124.5 r150.8 r134.3

2010 I 154.5 168.6 109.1 187.8 123.6 121.6 156.6 134.6

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

 Percent change from previous quarter at annual rate(5)

2008 I -0.2 -1.3 -1.1 0.9 r-3.6 1.1 -0.3 0.6

 II 2.9 1.1 -1.8 1.4 r-3.6 -1.5 6.1 1.4

 III 1.4 -3.7 -5.0 5.9 r-0.4 4.5 4.1 4.3

 IV 2.1 -7.2 -9.1 4.1 r14.6 1.9 -5.2 -1.0

 ANNUAL 2.1 0.0 -2.1 3.0 -0.8 0.8 2.6 1.5

2009 I 0.9 -8.7 -9.5 -4.1 r-2.0 -5.0 13.4 2.1

 II 7.6 -1.0 -8.0 7.5 r5.7 -0.1 -0.7 -0.3

 III 8.0 2.2 -5.3 0.0 r-3.6 -7.4 11.9 0.1

 IV r6.6 r6.9 0.3 r0.4 r-2.2 r-5.8 9.3 r0.3

 ANNUAL 3.8 -3.5 -7.0 1.9 2.3 -1.8 5.0 0.9

2010 I 3.0 4.1 1.1 1.7 0.2 -1.3 3.2 0.6

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

 Percent change from corresponding quarter of previous year

2008 I 2.7 2.0 -0.7 2.9 -1.2 0.2 3.7 1.6

 II 2.7 1.4 -1.3 2.7 -1.6 0.0 3.2 1.2

 III 1.6 -0.5 -2.1 3.3 r-1.9 1.7 2.4 2.0

 IV 1.5 -2.8 -4.3 3.0 1.5 1.5 1.1 1.3

 ANNUAL 2.1 0.0 -2.1 3.0 -0.8 0.8 2.6 1.5

2009 I 1.8 -4.7 -6.4 1.7 1.9 -0.1 4.4 1.7

 II 3.0 -5.2 -7.9 3.3 r4.3 0.3 2.7 1.3

 III 4.6 -3.8 -8.0 1.8 3.4 -2.7 4.6 0.2

 IV r5.7 r-0.3 -5.7 0.9 -0.6 r-4.6 8.3 r0.6

 ANNUAL 3.8 -3.5 -7.0 1.9 2.3 -1.8 5.0 0.9

2010 I 6.3 3.0 -3.1 2.4 -0.1 -3.7 5.8 0.2

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

See footnotes following Table 6. May 6, 2010

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

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

2008 I 141.8 172.0 121.3 179.3 r120.6 126.4 142.5 132.3

 II 142.8 172.6 120.8 179.7 r119.4 125.9 144.9 132.9

 III 143.2 170.8 119.3 182.4 r119.3 127.4 146.5 134.4

 IV 144.0 167.5 116.3 184.4 r123.6 128.1 145.1 134.3

 ANNUAL 142.9 170.7 119.4 181.4 120.7 126.9 144.7 133.5

2009 I 144.3 163.7 113.4 182.5 r123.0 126.4 150.3 135.2

 II 147.0 163.2 111.1 185.9 r124.7 126.4 150.0 135.1

 III 149.8 164.1 109.6 185.7 r123.5 124.0 154.6 135.2

 IV r152.1 r166.9 r109.8 r185.9 r122.8 r122.2 r157.5 r135.2

 ANNUAL r148.3 r164.5 r110.9 r185.0 r123.5 r124.7 r153.2 r135.2

2010 I 153.4 168.7 110.0 186.7 122.9 121.7 158.9 135.4

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

 Percent change from previous quarter at annual rate(5)

2008 I -0.5 -1.7 -1.2 1.1 r-3.5 1.6 -1.3 0.5

 II 3.0 1.3 -1.6 1.1 r-3.9 -1.9 7.1 1.6

 III 1.1 -4.0 -5.0 6.0 r-0.3 4.9 4.2 4.6

 IV 2.2 -7.6 -9.6 4.5 r15.1 2.2 -3.7 -0.2

 ANNUAL 2.0 -0.1 -2.1 3.0 -0.8 1.0 2.4 1.5

2009 I 0.9 -8.8 -9.6 -4.2 r-2.0 -5.0 15.3 2.7

 II 7.6 -1.1 -8.1 7.7 r5.8 0.1 -0.9 -0.3

 III 7.8 2.2 -5.3 -0.4 r-3.9 -7.6 13.0 0.4

 IV r6.3 r7.0 r0.7 r0.4 r-2.3 r-5.6 7.7 r-0.2

 ANNUAL r3.7 -3.6 -7.1 r1.9 2.3 -1.7 5.8 1.3

2010 I 3.6 4.4 0.8 1.9 0.4 -1.6 3.6 0.6

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

 Percent change from corresponding quarter of previous year

2008 I 2.5 1.9 -0.6 2.8 -1.3 0.3 3.1 1.4

 II 2.7 1.3 -1.4 2.8 r-1.5 0.1 2.8 1.1

 III 1.6 -0.7 -2.2 3.5 r-1.7 1.9 2.2 2.0

 IV 1.4 -3.0 -4.4 3.1 1.6 1.7 1.5 1.6

 ANNUAL 2.0 -0.1 -2.1 3.0 -0.8 1.0 2.4 1.5

2009 I 1.8 -4.8 -6.5 1.8 r1.9 0.0 5.5 2.2

 II 2.9 -5.4 -8.1 3.4 4.4 0.5 3.5 1.7

 III 4.6 -3.9 -8.2 1.8 r3.5 -2.7 5.6 0.6

 IV r5.6 r-0.3 r-5.6 0.8 r-0.7 r-4.6 8.6 0.6

 ANNUAL r3.7 -3.6 -7.1 r1.9 2.3 -1.7 5.8 1.3

2010 I 6.3 3.1 -3.0 2.3 -0.1 -3.7 5.7 0.1

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

See footnotes following Table 6. May 6, 2010

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

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

2008 I r182.9 r150.1 82.1 175.6 r118.1 r96.0

 II r181.1 r148.1 81.8 176.1 r117.0 r97.3

 III r181.0 r144.6 79.9 179.2 r117.3 r99.1

 IV r179.7 r137.4 76.5 185.4 r124.2 r103.1

 ANNUAL r181.2 r145.1 80.1 179.0 119.0 r98.8

2009 I r178.4 r129.2 72.4 185.0 r124.7 r103.7

 II r181.3 r126.5 69.8 187.8 r126.0 r103.6

 III r187.6 r129.3 68.9 187.4 r124.6 r99.9

 IV r190.6 r131.1 r68.7 r187.2 r123.7 r98.2

 ANNUAL r184.4 r129.0 r70.0 r186.9 r124.8 r101.3

2010 I 191.8 133.5 69.6 186.7 122.8 97.3

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

 Percent change from previous quarter at annual rate(5)

2008 I 0.8 -1.2 -2.0 -1.7 r-6.2 -2.5 

 II -3.9 -5.2 -1.4 1.3 r-3.7 5.3

 III -0.3 -9.3 -9.0 7.2 r0.8 7.6

 IV -2.7 -18.4 -16.1 14.3 r25.9 17.5

 ANNUAL r1.1 r-3.0 -4.0 3.1 -0.7 r2.0

2009 I -2.9 -21.7 -19.4 -0.8 r1.4 2.1

 II 6.6 -8.1 -13.8 6.3 r4.5 r-0.3

 III 14.8 9.0 -5.1 -1.0 r-4.5 -13.7

 IV r6.5 r5.6 r-0.8 r-0.3 r-3.0 r-6.4

 ANNUAL 1.8 -11.1 -12.6 4.4 4.8 2.6

2010 I 2.5 7.5 4.9 -1.2 -2.7 -3.7

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

 Percent change from corresponding quarter of previous year

2008 I r3.5 r1.5 -2.0 1.6 r-2.4 r-1.8

 II 1.9 r-0.8 -2.7 2.3 -1.9 r0.3

 III 0.4 -3.9 -4.3 3.7 -1.5 3.3

 IV -1.5 -8.7 -7.3 5.1 3.5 6.7

 ANNUAL r1.1 r-3.0 -4.0 3.1 -0.7 r2.0

2009 I -2.4 -13.9 -11.7 5.4 r5.5 8.0

 II 0.1 -14.6 -14.7 6.6 7.7 6.5

 III 3.7 -10.6 -13.8 4.6 6.2 0.8

 IV 6.1 -4.6 -10.1 r1.0 r-0.5 r-4.8

 ANNUAL 1.8 -11.1 -12.6 4.4 4.8 2.6

2010 I 7.5 3.3 -3.9 0.9 -1.5 -6.1

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

See footnotes following Table 6. May 6, 2010

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

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

2008 I r213.8 r185.6 86.8 169.4 r114.0 r79.2

 II r210.3 r182.1 86.6 170.2 r113.1 r80.9

 III r213.1 r178.4 83.7 174.0 r113.9 r81.7

 IV r206.2 r165.4 80.2 179.4 r120.3 r87.0

 ANNUAL r210.9 r177.9 84.4 173.1 115.1 r82.1

2009 I r200.2 r150.4 75.1 179.5 r120.9 r89.6

 II r201.7 r143.9 71.3 184.2 r123.6 r91.3

 III r212.5 r149.0 70.1 182.8 r121.6 r86.0

 IV r216.2 r151.3 r70.0 r182.9 r120.8 r84.6

 ANNUAL r207.5 r148.6 r71.6 r182.3 r121.7 r87.9

2010 I 218.2 155.1 71.1 182.4 120.0 83.6

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

 Percent change from previous quarter at annual rate(5)

2008 I -1.0 -0.9 0.1 -3.6 r-7.9 -2.6

 II -6.5 -7.3 -0.8 1.9 r-3.1 9.0

 III 5.5 -7.9 -12.7 9.4 r2.8 3.7

 IV -12.3 -26.2 -15.9 13.0 r24.4 r28.9

 ANNUAL r1.1 r-3.2 -4.2 2.9 -0.9 r1.8

2009 I -11.1 -31.6 -23.0 0.1 r2.3 12.6

 II 3.0 -16.1 -18.6 11.0 r9.0 7.7

 III r23.2 r14.8 -6.8 -2.9 r-6.4 r-21.2

 IV r7.1 r6.4 r-0.7 r0.2 r-2.5 r-6.4

 ANNUAL -1.6 r-16.4 -15.1 r5.3 5.7 r7.0

2010 I 3.8 10.5 6.4 -1.2 -2.7 -4.9

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

 Percent change from corresponding quarter of previous year

2008 I r4.9 r2.9 -1.9 0.9 -3.2 r-3.8

 II r2.0 r-0.6 -2.5 2.2 -2.0 r0.2

 III r1.5 -3.7 -5.1 3.9 r-1.3 r2.4

 IV -3.8 -11.1 -7.6 5.0 3.4 9.1 

 ANNUAL r1.1 r-3.2 -4.2 2.9 -0.9 r1.8

2009 I -6.4 -19.0 -13.5 6.0 r6.1 13.2

 II -4.1 -21.0 -17.6 8.2 9.3 12.8

 III -0.3 -16.5 -16.3 5.1 r6.8 r5.3

 IV r4.9 r-8.5 r-12.7 r1.9 r0.5 r-2.8

 ANNUAL -1.6 r-16.4 -15.1 r5.3 5.7 r7.0

2010 I 9.0 3.1 -5.4 1.6 -0.8 -6.8

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

See footnotes following Table 6. May 6, 2010

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

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

2008 I r154.4 r115.7 74.9 185.2 r124.6 r120.0

 II r154.1 r114.9 74.5 185.2 r123.0 r120.1

 III r150.7 r111.7 74.1 187.0 r122.4 r124.1

 IV r153.7 r108.8 70.8 194.5 r130.3 r126.6

 ANNUAL r153.2 r112.8 73.6 187.9 124.9 r122.6

2009 I r154.5 r105.7 68.4 193.7 r130.5 r125.4

 II r156.6 r105.6 67.5 193.5 r129.8 r123.6

 III r159.0 r106.6 67.1 195.0 r129.7 r122.7

 IV r161.3 r107.9 r66.9 r194.4 r128.4 r120.5

 ANNUAL r157.8 r106.5 r67.5 r194.2 r129.6 r123.0

2010 I 162.2 109.2 67.3 193.7 127.4 119.4

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

 Percent change from previous quarter at annual rate(5)

2008 I 4.4 -1.4 -5.5 1.6 r-3.0 -2.7

 II -0.6 -2.8 -2.3 0.0 r-4.9 0.6

 III -8.5 -10.6 -2.3 4.1 r-2.1 13.8

 IV 8.0 -9.9 -16.6 16.9 r28.8 8.3

 ANNUAL r0.9 r-2.8 -3.7 3.6 -0.3 r2.6

2009 I 2.1 -11.1 -12.9 -1.6 r0.6 -3.6

 II 5.7 0.0 -5.4 -0.4 r-2.2 -5.8

 III 6.2 r3.8 -2.2 3.2 r-0.5 r-2.8

 IV r6.1 r4.9 r-1.2 r-1.2 r-3.8 r-6.9

 ANNUAL 3.0 r-5.6 -8.3 r3.4 3.7 0.3

2010 I 2.2 4.8 2.5 -1.5 -3.0 -3.7

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

 Percent change from corresponding quarter of previous year

2008 I r2.2 r0.0 -2.2 3.1 -1.1 r0.8

 II r2.1 r-1.0 -3.0 2.4 -1.8 r0.3

 III r-1.2 -4.0 -2.8 3.4 r-1.8 4.7

 IV 0.6 -6.3 -6.9 5.4 r3.8 4.8

 ANNUAL r0.9 r-2.8 -3.7 3.6 -0.3 r2.6

2009 I 0.1 -8.7 -8.7 4.6 4.8 4.5

 II 1.6 -8.0 -9.5 4.5 5.5 2.8

 III 5.5 -4.5 -9.4 4.3 r6.0 -1.1

 IV r5.0 r-0.8 -5.5 r0.0 -1.5 r-4.8

 ANNUAL 3.0 r-5.6 -8.3 r3.4 3.7 0.3

2010 I 5.0 3.4 -1.6 0.0 -2.4 -4.8

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

See footnotes following Table 6. May 6, 2010

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

 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

2007 I 143.6 175.1 122.0 164.3 r115.2 114.4 123.1 116.8 171.2 121.8

 II 144.3 176.5 122.3 165.0 r114.3 114.4 124.9 117.2 171.8 122.2

 III 144.0 175.8 122.1 166.1 r114.4 115.3 127.4 118.6 155.6 122.0

 IV 146.2 178.5 122.1 168.6 r114.8 115.3 127.9 118.7 149.9 121.6

 ANNUAL 144.5 176.5 122.1 166.0 114.6 114.9 125.8 117.8 162.1 121.9

2008 I 145.0 176.9 122.0 168.7 r113.5 116.3 129.1 119.8 133.0 121.0

 II 147.3 178.8 121.3 169.7 r112.7 115.1 129.2 118.9 134.7 120.4

 III 149.1 178.4 119.7 172.4 r112.8 115.6 129.8 119.4 145.3 121.8

 IV 149.2 174.6 117.0 175.0 r117.3 117.3 134.1 121.8 129.5 122.5

 ANNUAL 147.6 177.2 120.0 171.4 114.0 116.1 130.5 120.0 135.7 121.4

2009 I 146.6 166.6 113.7 173.2 r116.7 118.1 139.1 123.8 127.5 124.1

 II 149.9 166.4 111.0 175.4 r117.7 117.1 138.0 122.7 133.8 123.7

 III 151.3 165.7 109.5 175.9 r116.9 116.3 135.7 121.5 140.0 123.2

 IV 154.3 169.1 109.6 176.0 116.2 114.1 134.5 119.5 149.1 122.2

 ANNUAL 150.5 167.0 111.0 175.1 116.9 116.4 136.8 121.9 137.6 123.3

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

 Percent change from previous quarter at annual rate(5)

2007 I -0.6 0.2 0.8 3.9 r-0.1 4.5 7.5 5.3 -10.2 3.2

 II 2.0 3.2 1.2 1.7 r-2.9 -0.3 5.8 1.4 1.5 1.4

 III -0.8 -1.5 -0.7 2.6 r0.2 3.4 8.2 4.8 -32.7 -0.7

 IV 6.3 6.2 -0.1 6.3 r1.4 0.0 1.5 0.5 -13.8 -1.3

 ANNUAL 1.0 1.7 0.7 3.6 0.7 2.6 5.8 3.5 -9.9 1.7

2008 I -3.2 -3.6 -0.4 0.1 r-4.4 3.5 3.9 3.6 -38.0 -1.9

 II 6.6 4.4 -2.1 2.3 r-2.7 -4.0 0.5 -2.7 5.0 -2.0

 III 4.9 -0.8 -5.4 6.5 r0.1 1.6 1.8 1.6 35.5 4.8

 IV 0.2 -8.3 -8.5 6.3 r17.1 6.1 13.9 8.3 -37.0 2.4

 ANNUAL 2.2 0.4 -1.7 3.2 -0.6 1.1 3.7 1.8 -16.3 -0.4

2009 I -6.8 -17.1 -11.0 -4.1 r-2.0 2.9 15.8 6.6 -5.8 5.3

 II 9.2 -0.6 -9.0 5.3 r3.5 -3.6 -3.2 -3.5 21.0 -1.3

 III 3.9 -1.7 -5.4 1.0 r-2.6 -2.8 -6.5 -3.9 19.9 -1.8

 IV 8.2 8.5 0.3 0.2 -2.4 -7.4 -3.4 -6.2 28.7 -2.9

 ANNUAL 1.9 -5.8 -7.5 2.2 2.6 0.2 4.8 1.6 1.5 1.6

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

 Percent change from corresponding quarter of previous year

2007 I 0.3 1.4 1.1 3.3 0.8 2.9 5.5 3.7 -3.0 2.8

 II 1.6 2.6 1.0 3.6 0.9 2.0 5.0 2.8 -2.2 2.1

 III 0.4 0.9 0.5 3.9 1.6 3.5 7.0 4.5 -18.7 1.1

 IV 1.7 2.0 0.3 3.6 -0.4 1.9 5.7 3.0 -14.7 0.6

 ANNUAL 1.0 1.7 0.7 3.6 0.7 2.6 5.8 3.5 -9.9 1.7

2008 I 1.0 1.0 0.0 2.7 -1.5 1.7 4.8 2.6 -22.3 -0.6

 II 2.1 1.3 -0.8 2.8 -1.4 0.7 3.5 1.5 -21.6 -1.5

 III 3.5 1.5 -2.0 3.8 -1.4 0.2 1.9 0.7 -6.6 -0.1

 IV 2.0 -2.2 -4.1 3.8 2.2 1.7 4.9 2.6 -13.6 0.8

 ANNUAL 2.2 0.4 -1.7 3.2 -0.6 1.1 3.7 1.8 -16.3 -0.4

2009 I 1.1 -5.8 -6.8 2.7 r2.8 1.6 7.7 3.4 -4.1 2.6

 II 1.7 -6.9 -8.5 3.4 4.4 1.7 6.8 3.2 -0.7 2.8

 III 1.5 -7.1 -8.5 2.1 3.7 0.6 4.5 1.7 -3.7 1.1

 IV 3.4 -3.2 -6.4 0.6 -0.9 -2.8 0.3 -1.9 15.1 -0.2

 ANNUAL 1.9 -5.8 -7.5 2.2 2.6 0.2 4.8 1.6 1.5 1.6

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

See footnotes following Table 6. May 6, 2010

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 –1.5 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 fourth quarter of 

2009. 

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 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 1978-2009 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

Indexes 1992=100

 Real

 Output per Hours Compensa- compensa- Unit 

 hour of of all tion per tion per labor

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

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

 1987 r89.0 r92.4 103.8 80.6 97.2 r90.5

 1988 r90.9 r97.2 106.9 83.5 97.1 r91.8

 1989 r91.9 r98.8 107.6 86.0 95.9 r93.6

 1990 r93.9 r98.5 104.9 90.1 95.7 r96.0

 1991 r96.3 96.8 100.5 95.5 97.9 r99.1

 1992 100.0 100.0 100.0 100.0 100.0 100.0

 1993 r102.6 r103.9 101.3 102.3 99.8 r99.7

 1994 r106.2 r110.1 103.7 104.8 100.1 r98.7

 1995 r111.0 r115.9 104.4 106.5 99.3 r95.9

 1996 r115.1 r119.8 104.2 108.3 98.4 r94.1

 1997 r121.3 r128.7 106.0 110.9 98.7 r91.4

 1998 r127.9 r135.3 105.8 117.8 103.4 r92.1

 1999 r133.7 r140.5 105.1 123.0 105.7 r92.0

 2000 r139.2 r144.3 103.7 132.5 110.2 r95.2

 2001 r141.4 r137.0 96.9 137.5 111.2 r97.3

 2002 r151.1 r136.1 90.1 145.1 115.5 r96.0

 2003 r160.6 r137.5 85.6 156.7 122.0 r97.6

 2004 r164.3 r140.0 85.2 157.9 119.7 r96.1

 2005 r172.0 r144.9 84.3 163.2 119.7 r94.9

 2006 r173.4 r147.2 84.9 166.4 118.2 r96.0

 2007 r179.2 r149.5 83.4 173.5 119.9 r96.8

 2008 r181.2 r145.1 80.1 179.0 119.0 r98.8

 2009 r184.4 r129.0 r70.0 r186.9 r124.8 r101.3

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

See footnotes following Table 6. May 6, 2010

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

Appendix table 2.

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

Indexes 1992=100

 Real

 Output per Hours Compensa- compensa- Unit 

 hour of of all tion per tion per labor

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

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

 1987 r88.5 r94.2 106.5 80.7 97.3 r91.1

 1988 r90.4 r100.0 110.6 82.9 96.5 r91.7

 1989 r91.2 r101.1 110.9 85.4 95.2 r93.6

 1990 r92.9 r99.8 107.4 89.1 94.7 r95.9

 1991 r94.6 r96.0 101.4 94.8 97.2 r100.2

 1992 100.0 100.0 100.0 100.0 100.0 100.0

 1993 r103.9 r105.4 101.4 102.0 99.5 r98.1

 1994 r109.1 r114.2 104.7 104.5 99.9 r95.8

 1995 r115.9 r123.3 106.3 105.3 98.2 r90.8

 1996 r122.1 r131.0 107.3 106.4 96.7 r87.2

 1997 r130.5 r144.0 110.4 108.3 96.3 r83.0

 1998 r140.5 r156.0 111.0 115.3 101.1 r82.0

 1999 r150.6 r166.4 110.5 120.3 103.4 r79.9

 2000 r158.0 r173.5 109.8 129.8 107.9 r82.2

 2001 r158.9 r162.0 101.9 133.6 108.0 r84.0

 2002 r170.9 r159.8 93.5 140.1 111.5 r82.0

 2003 r183.2 r162.2 88.5 153.0 119.1 r83.5

 2004 r186.4 r166.1 89.1 152.5 115.6 r81.8

 2005 r196.1 r174.4 89.0 157.2 115.3 r80.2

 2006 r200.0 r179.9 89.9 160.7 114.1 r80.4

 2007 r208.6 r183.7 88.1 168.2 116.2 r80.6

 2008 r210.9 r177.9 84.4 173.1 115.1 r82.1

 2009 r207.5 r148.6 r71.6 r182.3 r121.7 r87.9

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

See footnotes following Table 6. May 6, 2010

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

Appendix table 3.

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

Indexes 1992=100

 Real

 Output per Hours Compensa- compensa- Unit 

 hour of of all tion per tion per labor

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

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

 1987 r91.3 r91.0 99.7 79.8 96.3 r87.4

 1988 r93.2 r94.4 101.4 83.6 97.2 r89.7

 1989 r94.0 r96.4 102.5 86.3 96.3 r91.8

 1990 r96.0 r97.1 101.1 91.4 97.1 r95.3

 1991 r98.3 r97.4 99.1 96.4 98.9 r98.1

 1992 100.0 100.0 100.0 100.0 100.0 100.0

 1993 r101.2 r102.4 101.2 102.7 100.3 r101.6

 1994 r103.5 r105.7 102.1 105.0 100.4 r101.5

 1995 r106.2 r107.7 101.5 108.1 100.9 r101.8

 1996 r108.4 r107.8 99.4 110.8 100.7 r102.3

 1997 r112.8 r112.2 99.5 114.7 102.1 r101.7

 1998 r115.8 r113.4 97.9 121.0 106.2 r104.5

 1999 r117.0 r113.3 96.9 126.3 108.5 r107.9

 2000 r120.8 r114.2 94.5 135.4 112.6 r112.1

 2001 r123.7 r110.5 89.4 143.2 115.9 r115.8

 2002 r130.7 r110.9 84.8 153.2 121.9 r117.2

 2003 r137.0 r111.4 81.3 162.2 126.3 r118.4

 2004 r141.9 r112.6 79.4 166.5 126.3 r117.3

 2005 r148.8 r114.8 77.2 172.5 126.6 r115.9

 2006 r148.5 r114.7 77.3 175.1 124.4 r117.9

 2007 r151.8 r116.0 76.4 181.4 125.3 r119.5

 2008 r153.2 r112.8 73.6 187.9 124.9 r122.6

 2009 r157.8 r106.5 r67.5 r194.2 r129.6 r123.0

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

See footnotes following Table 6. May 6, 2010

r=revised Source: Bureau of Labor Statistics