Transmission of material in this release is embargoed until USDL 18-1738 

8:30 a.m. (EDT) Thursday, November 1, 2018 

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

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

PRODUCTIVITY AND COSTS

Third Quarter 2018, Preliminary

Nonfarm business sector labor productivity increased 2.2 percent during the third quarter of 2018, the 

U.S. Bureau of Labor Statistics reported today, as output increased 4.1 percent and hours worked 

increased 1.8 percent. (All quarterly percent changes in this release are seasonally adjusted annual rates.) 

From the third quarter of 2017 to the third quarter of 2018, productivity increased 1.3 percent, reflecting 

a 3.7-percent increase in output and a 2.4-percent increase in hours worked. (See chart 1 and tables A1 

and 2.) 

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

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

Unit labor costs in the nonfarm business sector increased 1.2 percent in the third quarter of 2018, 

reflecting a 3.5-percent increase in hourly compensation and a 2.2-percent increase in labor productivity. 

Unit labor costs increased 1.5 percent over the last four quarters. (See chart 2 and tables A1 and 2.) 

BLS calculates unit labor costs as the ratio of hourly compensation to labor productivity. Increases in 

hourly compensation tend to increase unit labor costs, and increases in output per hour tend to reduce 

them. 

Chart 1. Labor productivity, nonfarm business, 2014Q1 – 2018Q3

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2014 2015 2016 2017 2018

From previous quarter, annual rate

From same quarter a year ago

Percent change Percent change

Chart 2. Unit labor costs, nonfarm business, 2014Q1 – 2018Q3

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2014 2015 2016 2017 2018

From previous quarter, annual rate

From same quarter a year ago
-2- 

Manufacturing sector labor productivity increased 0.5 percent in the third quarter of 2018, as output 

increased 3.4 percent and hours worked increased 2.9 percent. Productivity increased 1.5 percent in the 

durable manufacturing sector, as output rose 4.9 percent and hours worked increased 3.4 percent. In the 

non-durable goods manufacturing sector, a 0.1-percent decline in productivity reflected a 1.9-percent 

increase in output and a 2.0-percent increase in hours worked. Over the last four quarters, total 

manufacturing sector productivity increased 1.3 percent, as output increased 3.4 percent and hours 

worked increased 2.1 percent. Unit labor costs in manufacturing increased 0.9 percent in the third

quarter of 2018 and increased 0.9 percent from the same quarter a year ago. (See tables A1 and 3.)

The concepts, sources, and methods used for the manufacturing output series differ from those used in 

the business and nonfarm business output series; these output measures are not directly comparable. See 

the Technical Notes for a more detailed explanation. (See page 6.) 

Revised measures

Revised and previous measures for the second quarter of 2018 are shown in tables A2 and B1, covering 

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

In the second quarter of 2018, nonfarm business sector productivity increased 3.0 percent, slightly 

higher than reported on September 6. Unit labor costs declined 1.0 percent during the second quarter, 

the same rate as previously reported. In the manufacturing sector, productivity was revised down 0.3 

percentage point to an increase of 1.2 percent, due to a downward revision to output. Durable 

manufacturing productivity was revised down from 1.1 percent to 0.3 percent, due to a downward 

revision to output; nondurable manufacturing productivity was revised up slightly to 2.4 percent. Unit 

labor costs in total manufacturing increased 0.1 percent rather than decreasing 0.2 percent as 

previously reported.

Second-quarter 2018 measures of productivity and costs were revised for the nonfinancial corporate 

sector. Productivity decreased 0.9 percent rather than decreasing 0.7 percent as previously reported. 

Unit labor costs increased 2.7 percent rather than the preliminary estimate of a 2.4-percent increase. 

(See table A2.) 

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

www.bls.gov/lpc/#data. 

______________ 

The revised Productivity and Costs news release for third-quarter 2018 is scheduled to be released 

on Wednesday, December 5, 2018 at 8:30 a.m. (EST)
-3- 

Table A1. Labor productivity growth and related measures - preliminary third-quarter 2018

(percent change from previous quarter at annual rate and from same quarter a year ago)

Sector Percent change from:

Labor 

productivity Output

Hours 

worked

Hourly 

compensation

Real hourly 

compensation

Unit labor 

costs

Nonfarm business Previous quarter 2.2 4.1 1.8 3.5 1.4 1.2

A year ago 1.3 3.7 2.4 2.8 0.1 1.5

Business Previous quarter 1.9 4.1 2.1 3.2 1.2 1.2

A year ago 1.2 3.6 2.4 2.8 0.1 1.5

Manufacturing Previous quarter 0.5 3.4 2.9 1.5 -0.5 0.9

A year ago 1.3 3.4 2.1 2.2 -0.4 0.9

Durable 

manufacturing

Previous quarter 1.5 4.9 3.4 1.8 -0.2 0.3

A year ago 1.6 4.0 2.4 2.7 0.1 1.1

Nondurable 

manufacturing

Previous quarter -0.1 1.9 2.0 0.8 -1.2 0.9

A year ago 1.2 2.7 1.5 1.2 -1.4 0.0

Table A2. Labor productivity growth and related measures - revised and previously published second-quarter 2018

(percent change from previous quarter at annual rate)

Sector

Labor 

productivity Output

Hours 

worked

Hourly 

compensation

Real hourly 

compensation

Unit labor 

costs

Nonfinancial 

corporate

Revised -0.9 1.9 2.8 1.8 0.2 2.7

Previously published -0.7 2.2 2.9 1.7 0.1 2.4

Table B1. Labor productivity growth and related measures - revised and previously published second-quarter 2018

(percent change from previous quarter at annual rate)

Sector

Labor 

productivity Output

Hours 

worked

Hourly 

compensation

Real hourly 

compensation

Unit labor 

costs

Nonfarm business Revised 3.0 5.0 2.0 1.9 0.3 -1.0

Previously published 2.9 5.0 2.0 1.9 0.2 -1.0

Business Revised 3.6 5.1 1.5 2.4 0.7 -1.1

Previously published 3.6 5.1 1.5 2.3 0.6 -1.2

Manufacturing Revised 1.2 2.6 1.4 1.3 -0.3 0.1

Previously published 1.5 3.0 1.5 1.3 -0.4 -0.2

Durable 

manufacturing

Revised 0.3 2.0 1.7 1.1 -0.6 0.8

Previously published 1.1 2.9 1.8 1.0 -0.6 -0.1

Nondurable 

manufacturing

Revised 2.4 3.3 0.8 1.7 0.0 -0.7

Previously published 2.2 3.1 0.9 1.7 0.1 -0.4
-4- 

TECHNICAL NOTES

Labor Hours 

Hours data for the labor productivity and cost measures include hours worked for all persons working in 

the sector—wage and salary workers, the self-employed and unpaid family workers. The primary source 

of hours and employment data is the BLS Current Employment Statistics (CES) program, which 

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

establishments, counting a person who is employed by two or more establishments at each place of 

employment. The CES also provides average weekly paid hours of production and nonsupervisory 

workers in these establishments. Weekly paid hours are adjusted to hours worked using data from the 

National Compensation Survey (NCS) for 1996 forward and data from the BLS Hours at Work survey, 

conducted for this purpose, prior to 1990. Between 1990 and 1995, weekly paid hours are adjusted to 

hours at work using a combination of NCS and Hours at Work survey data. The Office of Productivity 

and Technology estimates average weekly hours at work for nonproduction and supervisory workers 

using information from the Current Population Survey (CPS), the CES, and the NCS. 

Data from the CPS are used to estimate hours worked for farm labor, nonfarm proprietors, and nonfarm 

unpaid family workers. Using CPS information on employment and hours worked at primary jobs and 

all other jobs, separately, the BLS productivity measures assign all hours worked to the appropriate 

industrial sector. Hours for government enterprises are derived from the CPS, the CES, and the National 

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

Department of Commerce.

Output

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

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

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

hours. Business output accounted for about 76 percent of the value of GDP in 2017. Nonfarm business, 

which excludes farming, accounted for about 75 percent of GDP in 2017. 

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

deflating current-dollar industry value of production data from the U.S. Bureau of the Census with 

deflators from the BLS. These deflators are based on data from the BLS Producer Price Index program 

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

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

industrial production prepared monthly by the Board of Governors of the Federal Reserve System, 

adjusted to be consistent with annual indexes of manufacturing sector output prepared by BLS. 

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

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

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

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

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

for about 49 percent of the value of GDP in 2017. 

Labor Productivity

The measure describes the relationship between real output and the labor time involved in its production. 

Measures of labor productivity growth show the changes from period to period in the amount of goods 

and services produced per hour worked. They reflect the joint effects of many influences, including 

changes in technology; capital investment; level of output; utilization of capacity, energy, and materials; 

the organization of production; managerial skill; and the characteristics and effort of the work force. 
-5- 

Labor Compensation 

The measure includes accrued wages and salaries, supplements, employer contributions to employee 

benefit plans, and taxes. Estimates of labor compensation by major sector, required for measures of 

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

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

institutions and private households are subtracted from compensation of employees in domestic 

industries to derive employee compensation for the business sector. The labor compensation of 

proprietors cannot be explicitly identified and must be estimated. This is done by assuming that 

proprietors have the same hourly compensation as employees in the same sector. The quarterly labor 

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

Unit Labor Costs 

These measures describe the relationship between compensation per hour and labor productivity, or real 

output per hour, and can be used as an indicator of inflationary pressure on producers. Increases in 

hourly compensation increase unit labor costs; labor productivity increases offset compensation 

increases and lower unit labor costs. 

Presentation of the data

The quarterly data in this release are presented in three ways: as percent changes from the previous 

quarter presented at a compound annual rate, as percent changes from the corresponding quarter of the 

previous year, and as index number series where 2012=100. Annual data are presented both as index 

number series and percent changes from the previous year. 

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

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

index numbers to three decimal places. A complete historical series of these index numbers are available 

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

Productivity (Telephone 202-691-5606 or email productivity@bls.gov). 

For a more detailed explanation of methodology see "Technical Information About the Major Sector 

Productivity and Costs Methods" at www.bls.gov/lpc/lpcmethods.pdf. 

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

phone: 202-691-5200; Federal Relay Service number: 1-800-877-8339. 
-6- 

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

seasonally adjusted.

 Real

 Hourly hourly Unit Implicit

Year Labor compen- compen- Unit nonlabor price

and produc- Hours sation sation labor payments deflator

quarter tivity Output worked (1) (2) costs (3) (4)

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

 Percent change from previous quarter at annual rate (5)

2018 III 1.9 4.1 2.1 3.2 1.2 1.2 0.9 1.1 

 II 3.6 5.1 1.5 2.4 r 0.7 r -1.1 r 10.1 r 3.6 r

 I 0.6 2.5 1.9 4.3 0.8 3.7 -0.4 1.9 

2017 ANNUAL 1.1 2.6 1.5 3.4 1.2 2.3 1.0 1.7 

2017 IV -1.1 2.9 4.1 1.2 -2.1 2.4 3.6 2.9 

 III 2.8 3.5 0.7 5.6 3.4 2.8 0.9 2.0 

 II 1.6 3.7 2.1 1.3 1.2 -0.3 2.3 0.8 

 I -0.2 1.9 2.0 4.0 1.0 4.2 -1.3 1.8 

2016 ANNUAL 0.2 1.7 1.5 1.0 -0.2 0.9 0.9 0.9 

2016 IV 1.9 2.2 0.3 5.6 2.7 3.6 -0.6 1.7 

 III 1.6 2.2 0.6 2.5 0.6 0.9 1.7 1.3 

 II 0.7 2.6 1.9 0.3 -2.3 -0.4 7.7 3.1 

 I 0.2 1.6 1.4 0.0 0.1 -0.2 -1.5 -0.8 

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

 Percent change from corresponding quarter of previous year

2018 III 1.2 3.6 2.4 2.8 0.1 1.5 3.5 2.4 

 II 1.4 3.5 2.0 3.4 r 0.7 1.9 3.5 2.6 

 I 0.9 3.1 2.2 3.1 0.8 2.1 1.6 1.9 

2017 ANNUAL 1.1 2.6 1.5 3.4 1.2 2.3 1.0 1.7 

2017 IV 0.8 3.0 2.2 3.0 0.9 2.3 1.4 1.9 

 III 1.5 2.8 1.3 4.1 2.1 2.6 0.3 1.6 

 II 1.2 2.5 1.3 3.3 1.4 2.1 0.5 1.4 

 I 1.0 2.2 1.2 3.1 0.5 2.1 1.8 2.0 

2016 ANNUAL 0.2 1.7 1.5 1.0 -0.2 0.9 0.9 0.9 

2016 IV 1.1 2.1 1.0 2.1 0.3 1.0 1.8 1.3 

 III -0.1 1.6 1.8 0.5 -0.7 0.6 1.0 0.8 

 II -0.4 1.3 1.6 0.4 -0.7 0.7 0.9 0.8 

 I 0.1 1.6 1.6 1.2 0.1 1.2 -0.2 0.6 

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

 Indexes 2012=100

2018 III 105.9 118.7 112.1 115.8 105.4 109.4 108.8 109.1 

 II 105.4 r 117.5 r 111.5 r 114.9 r 105.1 r 109.0 r 108.5 r 108.8 r

 I 104.5 116.0 111.1 114.2 104.9 109.3 106.0 107.9 

2017 ANNUAL 104.1 114.0 109.5 111.9 104.6 107.5 105.1 106.5 

2017 IV 104.3 115.3 110.6 113.0 104.7 108.3 106.1 107.4 

 III 104.6 114.5 109.5 112.7 105.3 107.7 105.1 106.6 

 II 103.9 113.5 109.3 111.2 104.4 107.0 104.9 106.1 

 I 103.5 112.5 108.7 110.8 104.1 107.0 104.3 105.8 

2016 ANNUAL 102.9 111.1 107.9 108.2 103.4 105.2 104.1 104.7 

2016 IV 103.5 112.0 108.2 109.7 103.8 105.9 104.6 105.4 

 III 103.1 111.4 108.1 108.2 103.1 105.0 104.8 104.9 

 II 102.7 110.8 107.9 107.6 103.0 104.8 104.4 104.6 

 I 102.5 110.1 107.4 107.5 103.6 104.9 102.4 103.8 

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

See footnotes following Table 6. November 1, 2018

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

Table 2. Nonfarm business sector: Labor productivity, hourly compensation, unit labor costs, and

prices, seasonally adjusted.

 Real

 Hourly hourly Unit Implicit

Year Labor compen- compen- Unit nonlabor price

and produc- Hours sation sation labor payments deflator

quarter tivity Output worked (1) (2) costs (3) (4)

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

 Percent change from previous quarter at annual rate (5)

2018 III 2.2 4.1 1.8 3.5 1.4 1.2 1.7 1.4 

 II 3.0 r 5.0 2.0 1.9 0.3 r -1.0 10.0 r 3.6 r

 I 0.3 2.6 2.3 3.8 0.2 3.4 -0.3 1.8 

2017 ANNUAL 1.1 2.7 1.6 3.4 1.2 2.2 0.9 1.6 

2017 IV -0.3 3.0 3.3 1.9 -1.3 2.3 3.7 2.9 

 III 2.3 3.6 1.3 5.1 2.9 2.8 1.1 2.1 

 II 1.6 3.8 2.2 1.3 1.2 -0.3 2.3 0.8 

 I 0.4 1.9 1.5 4.7 1.6 4.2 -2.4 1.3 

2016 ANNUAL 0.1 1.6 1.5 1.1 -0.2 0.9 1.2 1.1 

2016 IV 1.3 2.3 1.0 4.7 1.9 3.4 -0.1 1.8 

 III 1.3 2.2 0.9 2.2 0.3 0.9 2.2 1.5 

 II 0.9 2.5 1.6 0.7 -2.0 -0.2 7.8 3.2 

 I 0.3 1.6 1.3 0.1 0.1 -0.2 -0.5 -0.3 

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

 Percent change from corresponding quarter of previous year

2018 III 1.3 3.7 2.4 2.8 0.1 1.5 3.7 2.4 

 II 1.3 3.5 2.2 3.2 0.5 1.9 3.5 2.6 

 I 1.0 3.2 2.3 3.0 0.7 2.0 1.7 1.9 

2017 ANNUAL 1.1 2.7 1.6 3.4 1.2 2.2 0.9 1.6 

2017 IV 1.0 3.1 2.1 3.2 1.1 2.2 1.1 1.8 

 III 1.4 2.9 1.5 3.9 1.9 2.5 0.2 1.5 

 II 1.2 2.6 1.4 3.2 1.3 2.0 0.5 1.4 

 I 1.0 2.2 1.2 3.1 0.5 2.0 1.8 1.9 

2016 ANNUAL 0.1 1.6 1.5 1.1 -0.2 0.9 1.2 1.1 

2016 IV 1.0 2.1 1.2 1.9 0.1 0.9 2.3 1.5 

 III -0.1 1.6 1.7 0.6 -0.6 0.7 1.5 1.0 

 II -0.3 1.2 1.5 0.5 -0.6 0.8 1.2 1.0 

 I 0.0 1.6 1.6 1.2 0.1 1.2 0.0 0.7 

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

 Indexes 2012=100

2018 III 105.7 118.5 112.2 115.9 105.5 109.7 109.8 109.7 

 II 105.1 r 117.3 r 111.7 r 114.9 r 105.1 r 109.3 r 109.4 r 109.3 r

 I 104.3 115.9 111.1 114.3 105.1 109.6 106.8 108.4 

2017 ANNUAL 103.9 113.8 109.5 112.1 104.8 107.9 105.9 107.0 

2017 IV 104.3 115.2 110.5 113.3 105.0 108.7 106.9 107.9 

 III 104.3 114.3 109.6 112.8 105.3 108.1 105.9 107.1 

 II 103.8 113.3 109.2 111.4 104.6 107.3 105.6 106.6 

 I 103.4 112.3 108.6 111.0 104.3 107.4 105.0 106.4 

2016 ANNUAL 102.8 110.8 107.8 108.5 103.6 105.5 104.9 105.3 

2016 IV 103.2 111.7 108.2 109.7 103.9 106.3 105.7 106.0 

 III 102.9 111.1 108.0 108.5 103.4 105.4 105.7 105.6 

 II 102.6 110.5 107.7 107.9 103.3 105.2 105.1 105.2 

 I 102.3 109.8 107.3 107.7 103.8 105.2 103.2 104.4 

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

See footnotes following Table 6. November 1, 2018

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

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

seasonally adjusted.

 Real

Year Labor Hourly hourly Unit

and produc- Hours compensa- compensa- labor

quarter tivity Output worked tion (1) tion (2) costs

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

 Percent change from previous quarter at annual rate (5)

2018 III 0.5 3.4 2.9 1.5 -0.5 0.9 

 II 1.2 r 2.6 r 1.4 r 1.3 -0.3 r 0.1 r

 I -0.8 2.0 2.9 4.6 1.1 5.5 

2017 ANNUAL 0.7 1.8 1.0 3.3 1.1 2.6 

2017 IV 4.4 5.5 1.1 1.6 -1.7 -2.7 

 III -5.0 -1.9 3.3 2.4 0.3 7.8 

 II 3.5 2.9 -0.6 3.0 2.9 -0.5 

 I -0.3 2.2 2.5 3.9 0.9 4.2 

2016 ANNUAL 0.3 0.4 0.0 0.6 -0.7 0.3 

2016 IV 2.6 2.4 -0.3 5.8 3.0 3.0 

 III 0.6 1.7 1.1 1.8 -0.1 1.2 

 II -0.8 -1.1 -0.2 1.5 -1.2 2.3 

 I 2.5 1.8 -0.6 -2.7 -2.6 -5.0 

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

 Percent change from corresponding quarter of previous year

2018 III 1.3 3.4 2.1 2.2 -0.4 0.9 

 II -0.1 r 2.0 r 2.1 r 2.5 -0.2 2.6 r

 I 0.5 2.1 1.6 2.9 0.6 2.4 

2017 ANNUAL 0.7 1.8 1.0 3.3 1.1 2.6 

2017 IV 0.6 2.1 1.5 2.7 0.6 2.1 

 III 0.2 1.4 1.2 3.8 1.7 3.6 

 II 1.6 2.3 0.7 3.6 1.7 2.0 

 I 0.5 1.3 0.8 3.2 0.6 2.7 

2016 ANNUAL 0.3 0.4 0.0 0.6 -0.7 0.3 

2016 IV 1.2 1.2 0.0 1.6 -0.3 0.3 

 III -0.2 0.3 0.4 -0.2 -1.3 0.0 

 II 0.2 0.0 -0.2 0.4 -0.7 0.2 

 I 0.1 -0.1 -0.1 0.6 -0.5 0.6 

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

 Indexes 2012=100

2018 III 101.1 108.1 106.9 113.0 102.9 111.8 

 II 100.9 r 107.2 r 106.2 r 112.6 r 103.0 r 111.6 r

 I 100.6 106.5 105.8 112.2 103.1 111.5 

2017 ANNUAL 100.4 104.9 104.5 110.1 102.9 109.6 

2017 IV 100.8 105.9 105.1 111.0 102.8 110.1 

 III 99.7 104.5 104.8 110.5 103.3 110.8 

 II 101.0 105.0 104.0 109.9 103.2 108.8 

 I 100.2 104.3 104.1 109.1 102.5 108.9 

2016 ANNUAL 99.7 103.1 103.4 106.6 101.8 106.9 

2016 IV 100.2 103.7 103.5 108.0 102.2 107.8 

 III 99.6 103.1 103.5 106.5 101.5 107.0 

 II 99.4 102.7 103.3 106.1 101.5 106.7 

 I 99.6 103.0 103.3 105.7 101.8 106.0 

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

See footnotes following Table 6. November 1, 2018

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

Table 4. Durable manufacturing sector: Labor productivity, hourly compensation, and unit labor

costs, seasonally adjusted.

 Real

Year Labor Hourly hourly Unit

and produc- Hours compensa- compensa- labor

quarter tivity Output worked tion (1) tion (2) costs

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

 Percent change from previous quarter at annual rate (5)

2018 III 1.5 4.9 3.4 1.8 -0.2 0.3 

 II 0.3 r 2.0 r 1.7 r 1.1 r -0.6 0.8 r

 I 0.0 r 4.0 r 4.0 5.8 2.2 5.8 r

2017 ANNUAL 1.1 1.7 0.6 4.1 1.9 2.9 

2017 IV 4.8 5.2 0.4 2.2 -1.1 -2.4 

 III -4.8 -2.3 2.6 2.4 0.3 7.6 

 II 4.6 2.1 -2.3 6.1 6.0 1.5 

 I -0.8 2.8 3.6 3.4 0.4 4.2 

2016 ANNUAL -0.8 -1.2 -0.4 0.9 -0.3 1.8 

2016 IV 3.1 2.5 -0.6 6.8 4.0 3.6 

 III 1.9 2.2 0.3 2.2 0.4 0.3 

 II -0.4 -1.9 -1.5 1.9 -0.8 2.3 

 I -1.2 -1.1 0.1 -2.1 -2.0 -0.9 

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

 Percent change from corresponding quarter of previous year

2018 III 1.6 4.0 2.4 2.7 0.1 1.1 

 II 0.0 r 2.2 r 2.2 2.9 0.2 2.9 r

 I 1.1 2.2 r 1.1 4.1 1.8 3.0 

2017 ANNUAL 1.1 1.7 0.6 4.1 1.9 2.9 

2017 IV 0.9 1.9 1.0 3.5 1.4 2.6 

 III 0.5 1.2 0.8 4.7 2.6 4.2 

 II 2.2 2.4 0.2 4.6 2.6 2.4 

 I 0.9 1.4 0.4 3.6 0.9 2.6 

2016 ANNUAL -0.8 -1.2 -0.4 0.9 -0.3 1.8 

2016 IV 0.8 0.4 -0.4 2.2 0.3 1.3 

 III -1.3 -1.4 0.0 0.2 -0.9 1.6 

 II -1.4 -2.0 -0.7 0.7 -0.4 2.1 

 I -1.5 -1.9 -0.4 0.7 -0.4 2.2 

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

 Indexes 2012=100

2018 III 101.6 108.5 106.8 114.2 104.0 112.4 

 II 101.2 r 107.2 r 105.9 r 113.7 r 104.0 r 112.3 r

 I 101.1 r 106.7 r 105.4 113.4 104.2 112.1 r

2017 ANNUAL 100.6 104.8 104.2 110.6 103.4 110.0 

2017 IV 101.1 105.6 104.4 111.8 103.6 110.5 

 III 100.0 104.3 104.3 111.2 103.9 111.2 

 II 101.2 104.9 103.6 110.5 103.8 109.2 

 I 100.1 104.3 104.3 108.9 102.3 108.8 

2016 ANNUAL 99.5 103.0 103.5 106.3 101.5 106.8 

2016 IV 100.3 103.6 103.3 108.0 102.2 107.7 

 III 99.5 103.0 103.5 106.2 101.2 106.8 

 II 99.0 102.4 103.4 105.7 101.1 106.7 

 I 99.1 102.9 103.8 105.2 101.3 106.1 

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

See footnotes following Table 6. November 1, 2018

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

Table 5. Nondurable manufacturing sector: Labor productivity, hourly compensation, and unit labor

costs, seasonally adjusted.

 Real

Year Labor Hourly hourly Unit

and produc- Hours compensa- compensa- labor

quarter tivity Output worked tion (1) tion (2) costs

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

 Percent change from previous quarter at annual rate (5)

2018 III -0.1 1.9 2.0 0.8 -1.2 0.9 

 II 2.4 r 3.3 r 0.8 r 1.7 0.0 r -0.7 r

 I -1.0 r 0.0 r 1.0 2.0 -1.5 3.0 r

2017 ANNUAL -0.2 1.6 1.8 2.0 -0.2 2.2 

2017 IV 3.5 5.8 2.2 0.5 -2.8 -2.9 

 III -5.5 -1.4 4.3 2.6 0.5 8.6 

 II 1.2 3.7 2.4 -2.5 -2.6 -3.7 

 I 0.8 1.5 0.7 4.6 1.6 3.8 

2016 ANNUAL 0.7 1.4 0.7 0.0 -1.2 -0.6 

2016 IV 1.7 1.9 0.2 3.9 1.2 2.2 

 III -1.9 0.5 2.4 1.1 -0.7 3.1 

 II -3.2 -1.2 2.0 0.9 -1.7 4.2 

 I 5.8 3.7 -1.9 -3.9 -3.9 -9.1 

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 Percent change from corresponding quarter of previous year

2018 III 1.2 2.7 1.5 1.2 -1.4 0.0 

 II -0.2 r 1.9 r 2.1 1.7 -0.9 1.9 r

 I -0.5 2.0 r 2.5 0.6 -1.6 1.1 r

2017 ANNUAL -0.2 1.6 1.8 2.0 -0.2 2.2 

2017 IV -0.1 2.4 2.4 1.3 -0.8 1.3 

 III -0.5 1.4 1.9 2.1 0.2 2.6 

 II 0.4 1.9 1.4 1.8 -0.1 1.3 

 I -0.7 0.6 1.3 2.6 0.1 3.3 

2016 ANNUAL 0.7 1.4 0.7 0.0 -1.2 -0.6 

2016 IV 0.5 1.2 0.7 0.5 -1.3 0.0 

 III 0.0 1.2 1.2 -0.9 -2.0 -0.8 

 II 0.9 1.5 0.7 0.0 -1.1 -0.8 

 I 1.4 1.8 0.4 0.5 -0.6 -0.9 

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 Indexes 2012=100

2018 III 101.0 108.3 107.2 110.7 100.8 109.6 

 II 101.1 r 107.8 r 106.7 r 110.5 r 101.1 r 109.3 r

 I 100.5 r 106.9 r 106.5 110.0 101.1 109.5 r

2017 ANNUAL 100.7 105.8 105.0 109.2 102.1 108.5 

2017 IV 100.7 107.0 106.2 109.5 101.5 108.7 

 III 99.8 105.5 105.6 109.4 102.2 109.6 

 II 101.3 105.8 104.5 108.7 102.1 107.3 

 I 101.0 104.9 103.9 109.4 102.7 108.3 

2016 ANNUAL 100.9 104.1 103.2 107.1 102.3 106.2 

2016 IV 100.8 104.5 103.7 108.1 102.3 107.3 

 III 100.3 104.0 103.6 107.1 102.0 106.7 

 II 100.8 103.9 103.0 106.8 102.2 105.9 

 I 101.6 104.2 102.5 106.5 102.7 104.8 

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See footnotes following Table 6. November 1, 2018

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

Table 6. Nonfinancial corporate sector: Labor productivity, hourly compensation, unit labor costs,

unit profits, and prices, seasonally adjusted.

 Real

 Hourly hourly Unit Total Implicit

Year Labor compen- compen- Unit nonlabor unit Unit price

and produc- Hours sation sation labor costs costs profits deflator

quarter tivity Output worked (1) (2) costs (6) (7) (8) (4)

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

 Percent change from previous quarter at annual rate (5)

2018 II -0.9 r 1.9 r 2.8 r 1.8 r 0.2 r 2.7 r 1.6 r 2.4 r 15.9 r 4.0 

 I 3.0 5.3 2.2 4.4 0.8 1.4 -1.0 0.6 5.5 1.2 

2017 ANNUAL 1.6 3.4 1.7 3.2 1.0 1.5 1.0 1.3 -2.1 0.9 

2017 IV 1.4 4.2 2.7 0.3 -2.9 -1.1 0.5 -0.6 7.8 0.4 

 III 1.1 2.5 1.5 2.8 0.6 1.7 0.6 1.3 -17.1 -1.2 

 II 4.5 7.4 2.7 -0.1 -0.2 -4.4 -2.4 -3.7 7.5 -2.4 

 I 3.1 5.0 1.8 8.1 5.0 4.9 0.0 3.2 10.6 4.1 

2016 ANNUAL 0.0 1.5 1.5 1.1 -0.2 1.0 0.1 0.7 -6.8 -0.3 

2016 IV -2.4 -1.7 0.7 3.4 0.6 6.0 7.6 6.5 -9.1 4.4 

 III 4.7 6.3 1.5 1.5 -0.4 -3.1 -3.6 -3.3 -5.4 -3.5 

 II -4.8 -3.6 1.3 0.3 -2.4 5.4 6.5 5.8 -21.8 1.6 

 I 3.3 3.8 0.5 2.0 2.1 -1.2 -14.3 -5.7 31.2 -1.5 

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 Percent change from corresponding quarter of previous year

2018 II 1.1 r 3.5 2.3 2.3 -0.3 r 1.2 r 0.4 r 0.9 r 2.2 r 1.1 

 I 2.5 4.8 2.3 1.8 -0.4 -0.6 -0.6 -0.6 0.3 -0.5 

2017 ANNUAL 1.6 3.4 1.7 3.2 1.0 1.5 1.0 1.3 -2.1 0.9 

2017 IV 2.5 4.8 2.2 2.7 0.6 0.2 -0.3 0.0 1.5 0.2 

 III 1.5 3.2 1.7 3.5 1.5 1.9 1.4 1.8 -2.7 1.2 

 II 2.4 4.2 1.7 3.2 1.3 0.7 0.3 0.6 0.5 0.6 

 I 0.1 1.4 1.3 3.3 0.7 3.2 2.5 3.0 -7.1 1.6 

2016 ANNUAL 0.0 1.5 1.5 1.1 -0.2 1.0 0.1 0.7 -6.8 -0.3 

2016 IV 0.1 1.1 1.0 1.8 0.0 1.7 -1.4 0.7 -3.1 0.2 

 III 0.3 1.9 1.6 0.7 -0.5 0.4 0.2 0.4 -11.6 -1.4 

 II -0.7 1.0 1.7 0.6 -0.5 1.2 1.1 1.2 -7.7 0.0 

 I 0.3 2.0 1.7 1.2 0.1 0.9 0.4 0.7 -4.4 0.0 

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 Indexes 2012=100

2018 II 105.0 r 118.5 r 112.9 r 113.9 r 104.2 r 108.5 r 104.2 r 107.1 r 95.4 r 105.4 r

 I 105.2 118.0 112.2 113.4 104.2 107.8 103.8 106.5 91.9 104.4 

2017 ANNUAL 103.7 114.7 110.6 111.7 104.5 107.7 104.1 106.5 91.2 104.3 

2017 IV 104.4 116.5 111.5 112.2 104.0 107.4 104.1 106.3 90.7 104.1 

 III 104.1 115.3 110.8 112.1 104.7 107.7 104.0 106.5 89.0 104.0 

 II 103.8 114.6 110.4 111.3 104.6 107.3 103.8 106.1 93.3 104.3 

 I 102.6 112.6 109.7 111.4 104.6 108.5 104.4 107.1 91.6 104.9 

2016 ANNUAL 102.1 111.0 108.7 108.3 103.4 106.1 103.1 105.1 93.1 103.4 

2016 IV 101.9 111.2 109.2 109.2 103.3 107.2 104.4 106.3 89.4 103.9 

 III 102.5 111.7 109.0 108.3 103.2 105.7 102.5 104.6 91.5 102.8 

 II 101.3 110.0 108.6 107.9 103.3 106.5 103.5 105.5 92.8 103.7 

 I 102.6 111.0 108.2 107.8 103.9 105.1 101.9 104.0 98.7 103.3 

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See footnotes following Table 6. November 1, 2018

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. Hours and compensation data are from the Bureau of Labor Statistics and the Bureau of 

Economic Analysis.

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

becomes available. The measures are first published within 40 days of the close of the reference period; 

revisions appear 30 days later, and second revisions after an additional 60 days. In the business sector, the 

third publication (second revision) of a quarterly index of output per hour of all persons has differed from the 

initial value by between -1.5 and 1.4 index points approximately 95 percent of the time. This interval is based 

on the performance of this measure between the fourth quarter of 1995 and the second quarter of 2018. 

Table Footnotes

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

plans. Except for nonfinancial corporations, where there are no self-employed, data also include an estimate

of wages, salaries, and supplemental payments for the self-employed. 

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

(CPI-U). The trend from 1978-2017 is based on the Consumer Price Index research series (CPI-U-RS).

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

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

persons, and the current surplus of government enterprises.

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

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

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

Annual changes: Percent change is calculated using annual indexes to three decimal places.

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

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

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

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

adjustments.