For release 10:00 a.m. (EST) Thursday, December 6, 2012 USDL-12-2365

Technical Information: (202) 691-5654 • ilchelp@bls.gov • www.bls.gov/ilc

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

INTERNATIONAL COMPARISONS OF MANUFACTURING PRODUCTIVITY

AND UNIT LABOR COST TRENDS, 2011 

Manufacturing productivity increased in 2011 in 15 of 19 countries covered, the U.S. Bureau of Labor Statistics 

reported today. Labor productivity (output per hour) rose by more than 2 percent in the majority of countries 

(see chart 1). These productivity increases were generally driven by gains in output coupled with modest 

changes in hours (see chart 2). 

The data presented for the United States differ from those in the BLS Productivity and Costs news release. (See 

technical notes.) 

 

-6 -3 0 3 6 9 12

United Kingdom

Taiwan

Sweden

Spain

Singapore

Norway

Netherlands

Korea, Republic of

Japan

Italy

Germany

France

Finland

Denmark

Czech Republic

Canada

Belgium

Australia

United States

Percent change

Chart 1. Percent changes in manufacturing 

output per hour, 2010–2011

-6 -3 0 3 6 9 12

United Kingdom

Taiwan

Sweden

Spain

Singapore

Norway

Netherlands

Korea, Republic of

Japan

Italy

Germany

France

Finland

Denmark

Czech Republic

Canada

Belgium

Australia

United States

Output

Hours 

Percent change

Chart 2. Percent changes in manufacturing 

output and hours, 2010–2011
- 2 - 

In 2011, only the United Kingdom had larger productivity growth in manufacturing than in the previous year; in 

all other countries, productivity growth slowed down or declined. Only the Czech Republic and Singapore 

experienced productivity growth of 8 percent or higher in 2011, while in 2010 the majority of countries 

experienced growth that exceeded 8 percent (see chart 3).

 

. 

-10 0 10 20 30 40

United Kingdom

Taiwan

Sweden

Spain

Singapore

Norway

Netherlands

Korea, Republic of

Japan

Italy

Germany

France

Finland

Denmark

Czech Republic

Canada

Belgium

Australia

United States

2010-2011

2009-2010

Percent change

Chart 3. Percent changes in manufacturing output per hour

Get More Information

Analyze trends with interactive charts. 

The Excel version of the data tables includes an interactive dashboard that displays charts from a custom 

selection of variables, countries, and time periods at www.bls.gov/ilc/#productivity. 

Find additional data. 

The data tables with annual indexes back to 1950 used to prepare this report are available at 

www.bls.gov/ilc/#productivity. 

Send us your inquiries or feedback. 

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- 3 - 

Unit labor costs are the cost of labor input required to produce one unit of output and can be denominated either 

in national currency units or in U.S. dollars. Expressed in national currency units, manufacturing unit labor 

costs increased in 2011 in about half the countries covered; Japan and Australia recorded the largest increases 

(see chart 4). 

To compare unit labor costs across countries, they are generally converted into a common currency, in this case 

U.S. dollars. Changes in a country’s unit labor costs in U.S. dollars are roughly equivalent to the change in unit 

labor costs in national currency plus the change in the value of the country’s currency relative to the U.S. dollar 

(see table 3). The values of the currencies of all countries compared appreciated relative to the U.S. dollar in 

2011. As a result, unit labor costs in U.S. dollars showed larger increases than unit labor costs expressed in 

national currencies.

In 16 of the countries covered, unit labor costs on a U.S. dollar basis increased more than in the United States, 

causing the U.S. manufacturing labor cost competitiveness to increase relative to these countries. The United 

States improved its competiveness the most against Australia and Japan due to the large appreciation of their 

respective currencies against the U.S. dollar. However, U.S. labor cost competitiveness deteriorated relative to 

the Republic of Korea and the Czech Republic. 

 . 

-10 -5 0 5 10 15 20

United Kingdom

Taiwan

Sweden

Spain

Singapore

Norway

Netherlands

Korea, Republic of

Japan

Italy

Germany

France

Finland

Denmark

Czech Republic

Canada

Belgium

Australia

United States

National currency basis

U.S. dollar basis

Percent change

Chart 4. Percent changes in manufacturing unit labor costs, 2010–2011 
- 4 - 

 

Table 1. Output per hour, output, and hours

Manufacturing, 19 countries, 1979–2011

Average annual compound rates of change

Country Indicator 1979-2011 1979-1990 1990-2000 2000-2007 2007-2011 2009-2010 2010-2011

United States Output per hour 4.2 3.0 4.3 6.1 3.8 11.2 2.0

 Output 2.7 2.3 4.2 2.9 -0.3 11.2 4.3

 Hours -1.4 -0.6 -0.1 -3.1 -3.9 0.0 2.2

Australia Output per hour 1.7 2.1 1.8 2.3 -0.5 0.8 -4.0

 Output 1.2 1.6 1.5 1.5 -1.2 0.7 -2.1

 Hours -0.5 -0.5 -0.4 -0.8 -0.7 -0.1 2.0

Belgium Output per hour 2.8 4.2 2.8 2.2 -0.2 4.1 0.2

 Output 1.2 2.6 1.5 0.7 -2.2 4.8 3.3

 Hours -1.5 -1.6 -1.2 -1.5 -2.0 0.7 3.1

Canada Output per hour 2.2 2.1 3.6 1.0 0.8 3.7 1.9

 Output 1.4 1.9 4.2 -0.6 -2.8 5.2 2.4

 Hours -0.7 -0.2 0.6 -1.6 -3.5 1.5 0.5

Czech Republic Output per hour NA NA NA 9.7 8.3 13.0 10.1

 Output NA NA NA 9.4 5.4 13.8 9.8

 Hours NA NA NA -0.3 -2.7 0.8 -0.3

Denmark Output per hour 2.4 2.4 2.4 2.9 1.5 8.7 2.3

 Output 0.8 1.4 2.0 0.5 -3.1 1.5 1.5

 Hours -1.5 -0.9 -0.4 -2.4 -4.5 -6.6 -0.9

Finland Output per hour 4.9 5.0 6.5 7.0 -2.9 11.2 -0.1

 Output 3.5 3.4 5.5 6.2 -5.8 9.1 2.0

 Hours -1.3 -1.5 -0.9 -0.8 -3.0 -1.9 2.1

France Output per hour 3.2 3.2 3.9 3.3 1.1 6.1 2.2

 Output 0.9 0.9 1.9 1.2 -1.8 3.6 1.2

 Hours -2.2 -2.3 -1.9 -2.1 -2.9 -2.3 -1.0

Germany Output per hour 2.5 2.1 3.4 4.2 -1.9 7.6 4.5

 Output 1.0 1.2 0.6 3.0 -2.4 11.3 8.1

 Hours -1.5 -0.9 -2.6 -1.2 -0.5 3.5 3.5

Italy Output per hour 2.1 3.4 2.5 0.9 0.0 9.4 -0.4

 Output 1.0 2.6 1.3 0.8 -3.5 7.0 0.6

 Hours -1.1 -0.8 -1.2 -0.1 -3.5 -2.1 1.0

Japan Output per hour 3.4 3.8 3.3 3.8 2.2 14.8 -2.8

 Output 2.3 4.7 0.8 2.6 -1.4 18.2 -3.6

 Hours -1.1 0.9 -2.4 -1.1 -3.5 3.0 -0.8

Korea, Republic of Output per hour NA NA 10.5 8.1 4.1 8.5 6.0

 Output 8.5 10.8 8.4 6.8 5.6 14.7 7.2

 Hours NA NA -1.9 -1.1 1.5 5.7 1.1

Netherlands Output per hour 3.1 3.2 3.4 3.8 1.1 8.3 4.0

 Output 2.1 2.4 2.7 2.0 -0.3 6.9 3.5

 Hours -1.0 -0.8 -0.7 -1.7 -1.3 -1.3 -0.5

Norway Output per hour 1.8 2.0 0.9 2.3 2.6 4.5 2.0

 Output 0.7 -0.6 1.2 2.3 0.1 2.2 1.9

 Hours -1.1 -2.5 0.2 -0.1 -2.4 -2.2 0.0

Singapore Output per hour 5.0 4.0 7.2 2.0 7.7 35.0 8.0

 Output 6.8 7.3 7.4 5.5 6.4 29.7 7.6

 Hours 1.8 3.2 0.2 3.5 -1.2 -3.9 -0.3

Spain Output per hour 2.8 3.3 2.0 2.9 3.0 6.1 5.1

 Output 1.4 2.1 2.8 1.1 -3.2 0.5 2.4

 Hours -1.3 -1.2 0.8 -1.8 -6.0 -5.2 -2.5

Sweden Output per hour 4.2 2.1 6.2 6.6 0.9 18.6 3.4

 Output 3.3 1.7 5.8 5.2 -1.3 19.8 6.1

 Hours -0.8 -0.4 -0.4 -1.3 -2.2 1.0 2.6

Taiwan Output per hour 6.1 6.3 5.0 7.6 5.7 13.9 2.8

 Output 6.5 7.5 5.0 7.2 6.2 25.4 4.9

 Hours 0.4 1.2 -0.1 -0.4 0.5 10.0 2.0

United Kingdom Output per hour 3.4 3.5 3.0 4.5 2.2 4.4 4.5

 Output 0.4 0.9 0.9 0.1 -1.7 3.8 2.1

 Hours -2.9 -2.5 -2.1 -4.3 -3.8 -0.6 -2.3

NOTE: Output is real value added in national currency units.

German data for years before 1991 pertain to the former West Germany.

NA=data not available.
- 5 - 

 

Table 2. Unit labor costs, compensation, and output

National currency basis, manufacturing, 19 countries, 1979–2011

Average annual compound rates of change

Country Indicator 1979-2011 1979-1990 1990-2000 2000-2007 2007-2011 2009-2010 2010-2011

United States Unit labor costs 0.2 2.5 -0.4 -2.2 -0.7 -9.1 0.6

Compensation 2.9 4.9 3.8 0.6 -1.0 1.1 4.9

Output 2.7 2.3 4.2 2.9 -0.3 11.2 4.3

Australia Unit labor costs NA NA 1.6 2.8 2.4 0.0 3.1

Compensation NA NA 3.1 4.4 1.2 0.7 1.0

Output 1.2 1.6 1.5 1.5 -1.2 0.7 -2.1

Belgium Unit labor costs 1.1 1.8 0.2 1.0 2.0 -3.7 -1.0

Compensation 2.4 4.4 1.6 1.7 -0.2 0.9 2.3

Output 1.2 2.6 1.5 0.7 -2.2 4.8 3.3

Canada Unit labor costs 2.0 4.6 -0.3 2.7 -0.1 -5.8 0.3

Compensation 3.5 6.5 3.8 2.1 -2.8 -0.9 2.8

Output 1.4 1.9 4.2 -0.6 -2.8 5.2 2.4

Czech Republic Unit labor costs NA NA NA -1.8 -5.4 -8.8 -7.5

Compensation NA NA NA 7.4 -0.3 3.8 1.5

Output NA NA NA 9.4 5.4 13.8 9.8

Denmark Unit labor costs 2.6 5.5 0.5 2.1 1.1 -5.4 0.0

Compensation 3.5 7.0 2.5 2.5 -2.1 -4.0 1.4

Output 0.8 1.4 2.0 0.5 -3.1 1.5 1.5

Finland Unit labor costs 1.2 5.7 -2.2 -3.1 5.2 -9.6 2.7

Compensation 4.7 9.4 3.3 2.9 -0.9 -1.3 4.7

Output 3.5 3.4 5.5 6.2 -5.8 9.1 2.0

France Unit labor costs 2.1 5.8 -0.2 0.1 1.7 -3.9 0.3

Compensation 3.0 6.7 1.7 1.3 -0.1 -0.5 1.4

Output 0.9 0.9 1.9 1.2 -1.8 3.6 1.2

Germany Unit labor costs 1.6 3.3 1.4 -2.2 3.8 -8.6 -2.2

Compensation 2.5 4.6 2.0 0.7 1.4 1.8 5.8

Output 1.0 1.2 0.6 3.0 -2.4 11.3 8.1

Italy Unit labor costs 4.4 8.8 1.9 2.1 3.1 -6.3 2.5

Compensation 5.5 11.6 3.2 3.0 -0.6 0.3 3.2

Output 1.0 2.6 1.3 0.8 -3.5 7.0 0.6

Japan Unit labor costs -1.1 0.7 -0.9 -4.4 -1.0 -13.9 5.1

Compensation 1.1 5.5 -0.1 -1.8 -2.3 1.8 1.3

Output 2.3 4.7 0.8 2.6 -1.4 18.2 -3.6

Korea, Republic of Unit labor costs 3.7 7.9 2.6 1.6 -0.7 -0.6 -6.1

Compensation 12.6 19.5 11.3 8.5 4.9 14.0 0.6

Output 8.5 10.8 8.4 6.8 5.6 14.7 7.2

Netherlands Unit labor costs 0.5 0.8 0.3 -0.1 1.3 -6.9 -1.9

Compensation 2.6 3.2 3.0 1.9 1.0 -0.5 1.6

Output 2.1 2.4 2.7 2.0 -0.3 6.9 3.5

Norway Unit labor costs 4.0 6.7 3.4 2.3 1.3 -1.9 1.8

Compensation 4.7 6.1 4.5 4.7 1.5 0.3 3.8

Output 0.7 -0.6 1.2 2.3 0.1 2.2 1.9

Singapore Unit labor costs 0.2 3.7 -1.5 -1.1 -3.0 -18.3 -2.6

Compensation 7.0 11.3 5.8 4.4 3.2 6.0 4.8

Output 6.8 7.3 7.4 5.5 6.4 29.7 7.6

Spain Unit labor costs 3.9 7.8 2.7 2.4 -0.5 -5.0 -3.6

Compensation 5.4 10.1 5.5 3.5 -3.7 -4.5 -1.2

Output 1.4 2.1 2.8 1.1 -3.2 0.5 2.4

Sweden Unit labor costs 1.1 6.6 -2.1 -2.3 1.0 -17.5 -0.5

Compensation 4.5 8.4 3.6 2.8 -0.3 -1.2 5.5

Output 3.3 1.7 5.8 5.2 -1.3 19.8 6.1

Taiwan Unit labor costs 0.5 5.5 0.2 -3.8 -4.0 -9.4 1.8

Compensation 7.1 13.5 5.2 3.1 1.9 13.6 6.8

Output 6.5 7.5 5.0 7.2 6.2 25.4 4.9

United Kingdom Unit labor costs 2.7 6.1 1.3 0.6 1.1 0.7 -2.3

Compensation 3.1 7.0 2.2 0.6 -0.6 4.5 -0.2

Output 0.4 0.9 0.9 0.1 -1.7 3.8 2.1

NOTE: German data for years before 1991 pertain to the former West Germany.

NA=data not available.
- 6 - 

Table 3. Unit labor costs (ULC) in U.S. dollars and in national currency

Manufacturing, 19 countries, 1979–2011

Average annual compound rates of change

Country Indicator 1979-2011 1979-1990 1990-2000 2000-2007 2007-2011 2009-2010 2010-2011

United States ULC in U.S. dollars 0.2 2.5 -0.4 -2.2 -0.7 -9.1 0.6

ULC in nat. cur. 0.2 2.5 -0.4 -2.2 -0.7 -9.1 0.6

Exchange rates -- -- -- -- -- -- --

Australia ULC in U.S. dollars NA NA -1.3 8.4 7.9 16.1 15.8

ULC in nat. cur. NA NA 1.6 2.8 2.4 0.0 3.1

Exchange rates -0.2 -3.2 -2.9 5.4 5.3 16.1 12.3

Belgium ULC in U.S. dollars 1.2 0.6 -2.5 6.9 2.5 -8.4 4.0

ULC in nat. cur. 1.1 1.8 0.2 1.0 2.0 -3.7 -1.0

Exchange rates 0.0 -1.2 -2.6 5.8 0.4 -4.8 5.1

Canada ULC in U.S. dollars 2.6 4.6 -2.7 7.6 2.0 4.4 4.5

ULC in nat. cur. 2.0 4.6 -0.3 2.7 -0.1 -5.8 0.3

Exchange rates 0.5 0.0 -2.4 4.8 2.1 10.8 4.2

Czech Republic ULC in U.S. dollars NA NA NA 7.5 -1.8 -9.0 -0.2

ULC in nat. cur. NA NA NA -1.8 -5.4 -8.8 -7.5

Exchange rates NA NA NA 9.4 3.8 -0.2 7.9

Denmark ULC in U.S. dollars 2.6 4.0 -2.1 8.0 1.5 -10.0 5.1

ULC in nat. cur. 2.6 5.5 0.5 2.1 1.1 -5.4 0.0

Exchange rates -0.1 -1.5 -2.6 5.8 0.4 -4.8 5.1

Finland ULC in U.S. dollars 0.9 5.9 -7.1 2.6 5.6 -13.9 7.9

ULC in nat. cur. 1.2 5.7 -2.2 -3.1 5.2 -9.6 2.7

Exchange rates -0.3 0.2 -5.1 5.8 0.4 -4.8 5.1

France ULC in U.S. dollars 1.8 3.4 -2.9 5.9 2.1 -8.6 5.3

ULC in nat. cur. 2.1 5.8 -0.2 0.1 1.7 -3.9 0.3

Exchange rates -0.3 -2.2 -2.6 5.8 0.4 -4.8 5.1

Germany ULC in U.S. dollars 2.4 4.5 -1.4 3.5 4.2 -13.0 2.8

ULC in nat. cur. 1.6 3.3 1.4 -2.2 3.8 -8.6 -2.2

Exchange rates 0.8 1.1 -2.7 5.8 0.4 -4.8 5.1

Italy ULC in U.S. dollars 2.7 5.2 -3.7 8.1 3.5 -10.8 7.7

ULC in nat. cur. 4.4 8.8 1.9 2.1 3.1 -6.3 2.5

Exchange rates -1.6 -3.3 -5.4 5.8 0.4 -4.8 5.1

Japan ULC in U.S. dollars 2.0 4.6 2.1 -5.6 9.2 -8.1 15.7

ULC in nat. cur. -1.1 0.7 -0.9 -4.4 -1.0 -13.9 5.1

Exchange rates 3.2 3.8 3.0 -1.3 10.3 6.7 10.1

Korea, Republic of ULC in U.S. dollars 1.1 4.1 -2.0 4.5 -5.0 9.6 -2.0

ULC in nat. cur. 3.7 7.9 2.6 1.6 -0.7 -0.6 -6.1

Exchange rates -2.6 -3.4 -4.5 2.8 -4.3 10.3 4.4

Netherlands ULC in U.S. dollars 1.3 1.7 -2.4 5.7 1.7 -11.4 3.1

ULC in nat. cur. 0.5 0.8 0.3 -0.1 1.3 -6.9 -1.9

Exchange rates 0.7 0.9 -2.7 5.8 0.4 -4.8 5.1

Norway ULC in U.S. dollars 3.7 4.7 -0.1 8.5 2.5 2.1 9.9

ULC in nat. cur. 4.0 6.7 3.4 2.3 1.3 -1.9 1.8

Exchange rates -0.3 -1.9 -3.4 6.0 1.1 4.1 7.9

Singapore ULC in U.S. dollars 1.9 5.5 -1.0 0.8 1.5 -12.8 5.7

ULC in nat. cur. 0.2 3.7 -1.5 -1.1 -3.0 -18.3 -2.6

Exchange rates 1.7 1.7 0.5 2.0 4.6 6.7 8.5

Spain ULC in U.S. dollars 2.1 3.8 -3.0 8.3 -0.1 -9.6 1.3

ULC in nat. cur. 3.9 7.8 2.7 2.4 -0.5 -5.0 -3.6

Exchange rates -1.8 -3.7 -5.5 5.8 0.4 -4.8 5.1

Sweden ULC in U.S. dollars -0.2 3.5 -6.3 2.1 2.0 -12.4 10.5

ULC in nat. cur. 1.1 6.6 -2.1 -2.3 1.0 -17.5 -0.5

Exchange rates -1.3 -2.9 -4.3 4.5 1.0 6.2 11.1

Taiwan ULC in U.S. dollars 1.2 8.3 -1.3 -4.5 -1.3 -5.0 9.2

ULC in nat. cur. 0.5 5.5 0.2 -3.8 -4.0 -9.4 1.8

Exchange rates 0.6 2.7 -1.5 -0.7 2.8 4.8 7.2

United Kingdom ULC in U.S. dollars 1.8 4.4 -0.4 4.6 -4.3 -0.7 1.4

ULC in nat. cur. 2.7 6.1 1.3 0.6 1.1 0.7 -2.3

Exchange rates -0.9 -1.6 -1.6 4.1 -5.4 -1.3 3.8

NOTE: Exchange rates are value of foreign currency relative to the U.S. dollar.

German data for years before 1991 pertain to the former West Germany.

NA=data not available.
- 7 - 

TECHNICAL NOTES 

The comparisons in this release are based on data available to the Bureau of Labor Statistics as of September 1 

from national statistical offices of the countries compared. Below is a summary of the concepts used in this 

release. For more information on the methodology used in this release, see the detailed technical notes at 

www.bls.gov/ilc/#productivity. 

Labor productivity is defined as real output in national currency per hour worked. Unit labor costs are defined 

as the cost of labor input required to produce one unit of output, and are computed as compensation in nominal 

terms divided by real output. 

BLS constructs the trends in this release from three basic measures: output, total labor hours, and total 

compensation. In general, the output measures are real value added and total labor hours refer to hours worked 

by all employed persons. Total compensation includes employer expenditures for direct pay, employer social 

insurance expenditures, and labor-related taxes and subsidies. 

In general, the measures relate to total manufacturing as defined by the International Standard Industrial 

Classification (ISIC). Data for the United States and Canada are in accordance with the North American 

Industry Classification System (NAICS), except for compensation data for the United States before 1987. For 

most countries, the measures are prepared according to the United Nations System of National Accounts 1993 

(SNA 93) for the most recent years. For earlier years, data were compiled according to other systems of national 

accounts. 

The U.S. manufacturing output series used in this release differs from the manufacturing output series that BLS 

publishes as part of its major sector productivity and costs measures for the United States.1 The International 

Labor Comparisons program uses a value added output concept, while the major sector series is on a sectoral 

output basis, which is gross output less intra-sector sales and transfers. Even though BLS has determined that 

sectoral output is the correct concept for U.S. measures of productivity, there are other considerations that make 

value added the better concept for international comparisons of labor productivity, such as differences among 

countries in the extent of vertical integration of industries and the availability of value added data. 

The BLS measures are limited to trend comparisons. BLS does not prepare level comparisons of manufacturing 

productivity because of data limitations and technical problems in comparing the levels of manufacturing output 

among countries.

For more information on the methodology used in this release, see the detailed technical notes at 

www.bls.gov/ilc/#productivity. 

 

1 For more information about sectoral output, see www.bls.gov/lpc/.