Transmission of material in this release is embargoed until USDL 15-0157 

8:30 a.m. (EST) Thursday, February 5, 2015 

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

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

PRODUCTIVITY AND COSTS

Fourth Quarter and Annual Averages 2014, Preliminary 

Nonfarm business sector labor productivity decreased at a 1.8 percent annual rate during the fourth

quarter of 2014, the U.S. Bureau of Labor Statistics reported today, as output increased 3.2 percent and 

hours worked increased 5.1 percent. (All quarterly percent changes in this release are seasonally 

adjusted annual rates.) The increase in hours worked is the largest increase in this series since a gain of 

5.7 percent in the fourth quarter of 1998. From the fourth quarter of 2013 to the fourth quarter of 2014, 

productivity was unchanged as output and hours worked both increased 3.1 percent. (See chart 1 and 

table A.) Annual average productivity increased 0.8 percent from 2013 to 2014. (See table C.) 

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

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

 

Unit labor costs in the nonfarm business sector increased 2.7 percent in the fourth quarter of 2014, 

reflecting a 0.9 percent increase in hourly compensation and a 1.8 percent decline in productivity. Unit 

labor costs increased 1.9 percent over the last four quarters. (See chart 2 and tables A 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. Output per hour, nonfarm business, all persons, 

2010Q1 – 2014Q4

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2010 2011 2012 2013 2014

From previous quarter, annual rate

From same quarter a year ago

Percent change Percent change

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

2010Q1 – 2014Q4

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2010 2011 2012 2013 2014

From previous quarter, annual rate

From same quarter a year ago
Manufacturing sector productivity increased 1.3 percent in the fourth quarter of 2014, as output 

increased 5.7 percent and hours worked increased 4.3 percent. Productivity increased 1.5 percent in the 

durable manufacturing sector and increased 0.2 percent in the nondurable manufacturing sector. (See 

tables A, 3, 4, and 5.) Over the last four quarters, manufacturing productivity increased 2.8 percent, as 

output increased 4.8 percent and hours increased 1.9 percent. Unit labor costs in manufacturing 

increased 0.2 percent in the fourth quarter of 2014 and decreased 0.4 percent from the same quarter a 

year ago. (See tables A 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 

Technical Notes for a more detailed explanation. (See page 4.) 

Table C presents annual averages for the most recent five years for the nonfarm business sector and the 

total manufacturing sector. Nonfarm business sector productivity grew 0.8 percent in 2014, as output 

and hours increased 3.1 percent and 2.2 percent, respectively. This increase in productivity is similar to 

the increases of 0.9 percent in 2013 and 1.0 percent in 2012. These rates are slower than the long-term 

average annual rate of productivity growth since 1947 (2.2 percent), and reflect steady growth in both 

output and hours. 

Unit labor costs rose 1.5 percent in 2014, as hourly compensation grew faster than productivity. Real 

hourly compensation, which takes into account changes in consumer prices, increased 0.7 percent in 

2014. 

In the manufacturing sector, productivity increased 2.5 percent from 2013 to 2014, and unit labor costs 

were unchanged. Real hourly compensation in manufacturing increased 0.8 percent—the first annual 

increase in the series since 2009 (3.8 percent). 

Revised measures 

Revised and previous measures for the third quarter of 2014 are shown in tables B and D and cover the 

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

In the third quarter of 2014, nonfarm business productivity was revised up 1.4 percentage points, to an 

increase of 3.7 percent; this is due solely to an upward revision to output, as hours worked were 

unrevised. (See table B.) Unit labor costs for the nonfarm business sector fell 2.3 percent in the third 

quarter—rather than falling 1.0 percent as previously reported—due solely to the upward revision to 

productivity. 

In the manufacturing sector, productivity was revised up 0.3 percentage points, to an increase of 3.2 

percent. Manufacturing unit labor costs were revised down, to a decline of 1.7 percent. 

In the nonfinancial corporate sector, productivity increased 1.7 percent, after a 0.6 percentage point 

upward revision which was due solely to an upward revision to output. (See table D.) 

Quarterly and annual data for all sectors from 2012 to 2014 appear in tables 1-6. Full historical 

measures can be found on the Productivity and Costs home page: www.bls.gov/lpc/#data. 

______________ 

The revised Productivity and Costs news release for fourth-quarter 2014 is scheduled to be 

released on Thursday, March 5, 2015 at 8:30 a.m. (EST).

-2- 
Table A. Preliminary fourth-quarter 2014 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 -1.8 0.0 -2.0 -0.3 1.3 2.8 1.5 3.1 0.2 2.9

Output 3.2 3.1 3.3 2.9 5.7 4.8 4.5 5.8 7.0 3.7

Hours 5.1 3.1 5.3 3.2 4.3 1.9 3.0 2.5 6.8 0.9

Hourly compensation 0.9 1.9 0.6 1.7 1.5 2.4 1.3 2.1 2.2 2.8

Real hourly compensation 2.1 0.7 1.8 0.5 2.8 1.2 2.5 0.9 3.4 1.6

Unit labor costs 2.7 1.9 2.6 2.0 0.2 -0.4 -0.2 -1.0 2.0 0.0

Table B. Revised and previous measures: third quarter 2014 

Sector

 Nonfarm

 Business Business Manufacturing

 Durable

 Manufacturing

 Nondurable

 Manufacturing

Revised Previous Revised Previous Revised Previous Revised Previous Revised Previous

Percent change, annual rate, third quarter 2014

Productivity 3.7 2.3 3.2 1.8 3.2 2.9 3.5 3.2 3.8 3.5

Output 6.3 4.9 6.4 4.9 4.8 4.2 6.7 6.3 2.7 2.0

Hours 2.5 2.5 3.1 3.0 1.5 1.3 3.1 3.0 -1.1 -1.5

Hourly compensation 1.3 1.3 0.6 0.6 1.4 1.6 0.7 0.8 2.6 2.7

Real hourly compensation 0.2 0.2 -0.5 -0.5 0.3 0.5 -0.4 -0.3 1.5 1.6

Unit labor costs -2.3 -1.0 -2.5 -1.2 -1.7 -1.3 -2.6 -2.3 -1.2 -0.7

Table C. Annual average changes in productivity and related measures: 2010-2014

Sector Nonfarm Business Manufacturing

2010 2011 2012 2013 2014 2010 2011 2012 2013 2014

Productivity 3.3 0.1 1.0 0.9 0.8 6.2 0.8 1.0 2.0 2.5

Output 3.2 2.2 3.2 2.6 3.1 6.2 2.9 3.3 2.7 3.9

Hours -0.1 2.1 2.2 1.7 2.2 0.0 2.1 2.3 0.7 1.3

Hourly compensation 2.0 2.2 2.7 1.1 2.3 1.3 1.7 1.7 0.6 2.5

Real hourly compensation 0.3 -0.9 0.6 -0.3 0.7 -0.4 -1.4 -0.3 -0.8 0.8

Unit labor costs -1.3 2.1 1.7 0.2 1.5 -4.7 1.0 0.8 -1.4 0.0

Table D. Nonfinancial corporations: revised and previous third-quarter 2014 productivity and cost measures 

Productivity Output Hours

Hourly 

compensation

Real hourly 

compensation

Unit labor 

costs Unit profits

Implicit price 

deflator

Percent change, annual rate, third quarter 2014

Revised 1.7 4.6 2.9 0.9 -0.2 -0.8 5.7 0.7

Previous 1.1 4.0 2.9 0.9 -0.2 -0.3 3.2 0.7

-3- 
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, 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 at work using 

data from the National Compensation Survey (NCS) for 2001 forward and data from the BLS Hours at 

Work survey, conducted for this purpose, 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 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 correct 

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 inputs. Business output accounted for about 76 percent of the value of GDP in 2013. Nonfarm 

business, which excludes farming, accounted for about 74 percent of GDP in 2013. 

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 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 2013. 

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.

Labor Compensation: The measure includes accrued wages and salaries, supplements, employer 

contributions to employee benefit plans, and taxes. Estimates of labor compensation by major sector, 

required for measures of hourly compensation and unit labor costs, are based primarily on employee 

compensation data from the NIPA, prepared by the BEA. The compensation of employees in general 

government, nonprofit institutions and private households are subtracted from compensation of 

domestic employees to derive employee compensation for the business sector. The labor compensation 

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

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

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

-4- 
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 2009=100. Annual data 

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

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

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

using index numbers to three decimal places. These index numbers are available at the BLS web site, 

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

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

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

-5- 
Table 1. Business sector: Productivity, hourly compensation, unit labor costs, and prices,

seasonally adjusted

 Real

 Output Compen- compen- Unit Implicit

Year per hour Hours sation sation Unit nonlabor price

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

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

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

 Percent change from previous quarter at annual rate(5)

2014 ANNUAL 0.6 2.9 2.3 2.2 0.5 1.6 0.9 1.3 

2014 IV -2.0 3.3 5.3 0.6 1.8 2.6 -4.9 -0.8 

 III 3.2 r 6.4 r 3.1 r 0.6 -0.5 -2.5 r 5.9 r 1.1 r

 II 2.9 5.7 2.7 -1.1 -4.0 -3.9 11.1 2.4 

 I -5.0 -3.3 1.8 6.9 4.9 12.5 -11.5 1.3 

2013 ANNUAL 1.2 2.7 1.5 1.4 -0.1 0.2 3.1 1.4 

2013 IV 3.1 4.6 1.5 1.7 0.5 -1.4 4.0 1.0 

 III 3.5 5.9 2.4 0.3 -1.7 -3.1 7.9 1.6 

 II 0.7 2.1 1.4 3.8 3.4 3.1 -1.7 1.0 

 I 2.1 3.2 1.1 -5.6 -6.7 -7.6 14.6 1.4 

2012 ANNUAL 0.9 3.1 2.2 2.8 0.7 1.9 1.7 1.8 

2012 IV -2.0 -0.1 1.9 10.8 8.1 13.0 -12.3 1.3 

 III 1.3 3.1 1.8 0.0 -1.6 -1.3 6.5 2.0 

 II 1.8 2.3 0.4 0.8 -0.5 -1.0 6.5 2.2 

 I -0.1 3.1 3.3 11.6 9.2 11.7 -10.0 1.7 

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

 Percent change from corresponding quarter of previous year

2014 ANNUAL 0.6 2.9 2.3 2.2 0.5 1.6 0.9 1.3 

2014 IV -0.3 2.9 3.2 1.7 0.5 2.0 -0.3 1.0 

 III 1.0 r 3.3 r 2.3 r 2.0 0.2 1.0 r 2.0 r 1.4 

 II 1.1 3.2 2.1 1.9 -0.1 0.8 2.5 1.5 

 I 0.5 2.3 1.7 3.1 1.7 2.6 -0.6 1.2 

2013 ANNUAL 1.2 2.7 1.5 1.4 -0.1 0.2 3.1 1.4 

2013 IV 2.4 4.0 1.6 0.0 -1.2 -2.3 6.0 1.2 

 III 1.1 2.8 1.7 2.1 0.6 1.1 1.6 1.3 

 II 0.5 2.1 1.5 2.1 0.6 1.5 1.3 1.4 

 I 0.8 2.1 1.3 1.3 -0.3 0.5 3.3 1.7 

2012 ANNUAL 0.9 3.1 2.2 2.8 0.7 1.9 1.7 1.8 

2012 IV 0.3 2.1 1.8 5.7 3.7 5.4 -2.7 1.8 

 III 1.6 3.6 2.0 1.8 0.1 0.2 3.6 1.7 

 II 1.0 3.1 2.1 2.3 0.4 1.3 2.6 1.8 

 I 0.8 3.5 2.7 1.6 -1.2 0.8 3.8 2.1 

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

 Indexes 2009=100

2014 ANNUAL 106.1 114.8 108.2 110.8 100.4 104.4 113.2 108.1 

2014 IV 106.3 116.8 109.9 111.0 100.5 104.3 113.7 108.3 

 III 106.9 r 115.9 r 108.4 r 110.8 r 100.0 r 103.7 r 115.1 r 108.5 r

 II 106.0 114.1 107.6 110.6 100.1 104.3 113.5 108.2 

 I 105.3 112.5 106.9 110.9 101.1 105.4 110.6 107.5 

2013 ANNUAL 105.5 111.6 105.7 108.5 99.9 102.8 112.2 106.7 

2013 IV 106.6 113.5 106.4 109.1 99.9 102.3 114.0 107.2 

 III 105.8 112.2 106.0 108.6 99.8 102.7 112.9 106.9 

 II 104.9 110.6 105.4 108.6 100.3 103.5 110.7 106.5 

 I 104.7 110.0 105.1 107.5 99.4 102.7 111.2 106.3 

2012 ANNUAL 104.3 108.6 104.2 107.0 99.9 102.6 108.9 105.2 

2012 IV 104.2 109.1 104.8 109.1 101.2 104.7 107.5 105.9 

 III 104.7 109.2 104.3 106.4 99.2 101.6 111.1 105.6 

 II 104.3 108.3 103.8 106.3 99.6 101.9 109.3 105.0 

 I 103.9 107.7 103.7 106.1 99.8 102.2 107.6 104.5 

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

See footnotes following Table 6. February 5, 2015

r=revised Source: Bureau of Labor Statistics

-6- 
Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs, and prices,

seasonally adjusted

 Real

 Output Compen- compen- Unit Implicit

Year per hour Hours sation sation Unit nonlabor price

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

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

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

 Percent change from previous quarter at annual rate(5)

2014 ANNUAL 0.8 3.1 2.2 2.3 0.7 1.5 1.1 1.3 

2014 IV -1.8 3.2 5.1 0.9 2.1 2.7 -4.8 -0.7 

 III 3.7 r 6.3 r 2.5 1.3 0.2 -2.3 r 7.1 r 1.7 r

 II 2.9 5.5 2.5 -0.9 -3.8 -3.7 10.1 2.0 

 I -4.5 -2.4 2.1 6.6 4.6 11.6 -11.7 0.8 

2013 ANNUAL 0.9 2.6 1.7 1.1 -0.3 0.2 2.9 1.4 

2013 IV 3.3 4.7 1.4 1.9 0.7 -1.3 5.0 1.4 

 III 3.6 5.6 1.9 0.7 -1.4 -2.9 8.5 1.9 

 II 0.5 2.0 1.5 3.7 3.2 3.2 -0.7 1.5 

 I 0.8 2.4 1.6 -6.3 -7.4 -7.0 12.7 0.9 

2012 ANNUAL 1.0 3.2 2.2 2.7 0.6 1.7 2.0 1.8 

2012 IV -2.0 0.1 2.2 10.4 7.8 12.7 -12.8 1.0 

 III 1.7 3.7 2.0 -0.2 -1.8 -1.8 6.7 1.8 

 II 1.8 2.3 0.5 0.7 -0.7 -1.2 7.0 2.3 

 I 0.2 3.3 3.2 11.6 9.3 11.4 -9.9 1.6 

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

 Percent change from corresponding quarter of previous year

2014 ANNUAL 0.8 3.1 2.2 2.3 0.7 1.5 1.1 1.3 

2014 IV 0.0 3.1 3.1 1.9 0.7 1.9 -0.2 1.0 

 III 1.3 r 3.5 r 2.2 r 2.2 0.4 0.9 r 2.2 r 1.5 

 II 1.3 3.3 2.0 2.0 0.0 0.7 2.6 1.5 

 I 0.7 2.4 1.7 3.2 1.8 2.5 0.0 1.4 

2013 ANNUAL 0.9 2.6 1.7 1.1 -0.3 0.2 2.9 1.4 

2013 IV 2.0 3.7 1.6 -0.1 -1.3 -2.1 6.2 1.4 

 III 0.7 2.5 1.8 1.9 0.4 1.2 1.4 1.3 

 II 0.2 2.0 1.8 1.7 0.3 1.5 1.0 1.3 

 I 0.6 2.1 1.5 1.0 -0.7 0.4 2.9 1.5 

2012 ANNUAL 1.0 3.2 2.2 2.7 0.6 1.7 2.0 1.8 

2012 IV 0.4 2.3 1.9 5.5 3.5 5.1 -2.7 1.6 

 III 1.7 3.8 2.0 1.6 0.0 -0.1 4.1 1.7 

 II 1.1 3.1 2.0 2.3 0.4 1.2 2.8 1.9 

 I 0.9 3.7 2.7 1.5 -1.2 0.6 4.0 2.0 

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

 Indexes 2009=100

2014 ANNUAL 106.3 115.1 108.3 110.8 100.4 104.2 112.1 107.5 

2014 IV 106.6 117.0 109.8 111.1 100.6 104.2 112.7 107.8 

 III 107.1 r 116.1 r 108.5 r 110.8 r 100.1 r 103.5 r 114.1 r 107.9 r

 II 106.1 114.4 107.8 110.5 100.0 104.1 112.2 107.5 

 I 105.4 112.9 107.1 110.7 101.0 105.1 109.5 106.9 

2013 ANNUAL 105.4 111.7 105.9 108.3 99.7 102.7 110.9 106.1 

2013 IV 106.6 113.5 106.5 109.0 99.9 102.3 113.0 106.7 

 III 105.7 112.2 106.2 108.5 99.7 102.6 111.6 106.4 

 II 104.8 110.7 105.7 108.3 100.0 103.4 109.4 105.9 

 I 104.7 110.2 105.3 107.3 99.2 102.5 109.6 105.5 

2012 ANNUAL 104.5 108.9 104.2 107.1 100.0 102.4 107.8 104.7 

2012 IV 104.4 109.5 104.9 109.1 101.1 104.4 106.3 105.2 

 III 105.0 109.5 104.3 106.4 99.3 101.4 110.0 105.0 

 II 104.5 108.5 103.8 106.5 99.7 101.8 108.3 104.5 

 I 104.1 107.9 103.7 106.3 99.9 102.1 106.5 103.9 

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

See footnotes following Table 6. February 5, 2015

r=revised Source: Bureau of Labor Statistics

-7- 
Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,

seasonally adjusted

 Real

 Output Compen- compenYear per hour Hours sation sation Unit

and of all of all per hour per hour labor

quarter persons Output persons (1) (2) costs

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

 Percent change from previous quarter at annual rate(5)

2014 ANNUAL 2.5 3.9 1.3 2.5 0.8 0.0 

2014 IV 1.3 5.7 4.3 1.5 2.8 0.2 

 III 3.2 r 4.8 r 1.5 r 1.4 r 0.3 r -1.7 r

 II 3.7 r 7.3 r 3.4 -1.9 -4.8 -5.4 

 I 3.2 1.6 -1.6 8.9 6.9 5.5 

2013 ANNUAL 2.0 2.7 0.7 0.6 -0.8 -1.4 

2013 IV 1.3 4.7 3.4 0.8 -0.4 -0.5 

 III 0.5 1.7 1.1 0.6 -1.4 0.0 

 II 3.7 1.5 -2.2 2.9 2.4 -0.9 

 I 3.1 4.8 1.7 -2.3 -3.4 -5.2 

2012 ANNUAL 1.0 3.3 2.3 1.7 -0.3 0.8 

2012 IV 1.9 2.4 0.4 4.3 1.8 2.4 

 III 0.1 1.2 1.1 -2.1 -3.7 -2.1 

 II 1.0 2.4 1.3 0.4 -1.0 -0.7 

 I 2.8 6.1 3.1 10.7 8.4 7.6 

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

 Percent change from corresponding quarter of previous year

2014 ANNUAL 2.5 3.9 1.3 2.5 0.8 0.0 

2014 IV 2.8 4.8 1.9 2.4 1.2 -0.4 

 III 2.8 r 4.6 r 1.7 r 2.2 r 0.4 -0.6 r

 II 2.2 3.8 1.6 2.0 0.0 -0.2 r

 I 2.2 2.4 0.2 3.2 1.8 1.0 

2013 ANNUAL 2.0 2.7 0.7 0.6 -0.8 -1.4 

2013 IV 2.2 3.2 1.0 0.5 -0.7 -1.7 

 III 2.3 2.6 0.3 1.3 -0.2 -1.0 

 II 2.2 2.4 0.3 0.7 -0.8 -1.5 

 I 1.5 2.7 1.1 0.0 -1.6 -1.4 

2012 ANNUAL 1.0 3.3 2.3 1.7 -0.3 0.8 

2012 IV 1.5 3.0 1.5 3.2 1.3 1.7 

 III 0.6 3.2 2.6 0.9 -0.7 0.4 

 II 1.5 4.0 2.4 1.8 -0.1 0.3 

 I 0.4 3.2 2.8 1.0 -1.7 0.7 

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

 Indexes 2009=100

2014 ANNUAL 113.0 120.4 106.5 108.1 97.9 95.6 

2014 IV 114.0 122.9 107.8 108.4 98.2 95.1 

 III 113.7 r 121.2 r 106.6 r 108.0 r 97.5 r 95.1 r

 II 112.8 r 119.8 r 106.2 107.7 97.4 95.5 r

 I 111.7 117.7 105.3 108.2 98.6 96.8 

2013 ANNUAL 110.3 115.9 105.1 105.5 97.1 95.6 

2013 IV 110.9 117.2 105.8 105.9 97.0 95.5 

 III 110.5 115.9 104.9 105.7 97.1 95.6 

 II 110.4 115.4 104.6 105.5 97.5 95.6 

 I 109.4 115.0 105.2 104.8 96.9 95.8 

2012 ANNUAL 108.1 112.8 104.4 104.8 97.9 97.0 

2012 IV 108.5 113.6 104.7 105.4 97.7 97.1 

 III 108.0 113.0 104.6 104.3 97.3 96.6 

 II 108.0 112.7 104.3 104.8 98.2 97.1 

 I 107.7 112.0 104.0 104.7 98.5 97.2 

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

See footnotes following Table 6. February 5, 2015

r=revised Source: Bureau of Labor Statistics

-8- 
Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,

seasonally adjusted

 Real

 Output Compen- compenYear per hour Hours sation sation Unit

and of all of all per hour per hour labor

quarter persons Output persons (1) (2) costs

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

 Percent change from previous quarter at annual rate(5)

2014 ANNUAL 3.2 5.4 2.1 1.9 0.3 -1.2 

2014 IV 1.5 4.5 3.0 1.3 2.5 -0.2 

 III 3.5 r 6.7 r 3.1 r 0.7 r -0.4 r -2.6 r

 II 4.1 r 10.2 r 5.9 -3.1 -5.9 -6.9 r

 I 3.5 1.8 -1.6 10.0 7.9 6.3 

2013 ANNUAL 3.1 4.2 1.0 0.1 -1.4 -3.0 

2013 IV 2.6 6.9 4.2 -1.7 -2.9 -4.2 

 III 2.0 3.6 1.6 1.0 -1.0 -0.9 

 II 5.2 2.9 -2.1 2.6 2.1 -2.5 

 I 3.4 6.4 2.9 -3.4 -4.5 -6.5 

2012 ANNUAL 3.0 6.0 2.9 1.3 -0.7 -1.6 

2012 IV 3.3 3.6 0.3 5.1 2.6 1.7 

 III 0.5 1.1 0.6 -3.4 -5.0 -4.0 

 II 3.4 5.3 1.9 -1.0 -2.4 -4.3 

 I 7.0 10.3 3.1 11.9 9.6 4.6 

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

 Percent change from corresponding quarter of previous year

2014 ANNUAL 3.2 5.4 2.1 1.9 0.3 -1.2 

2014 IV 3.1 5.8 2.5 2.1 0.9 -1.0 

 III 3.4 r 6.3 r 2.8 1.4 -0.4 -2.0 r

 II 3.0 5.6 2.5 1.4 -0.6 -1.5 

 I 3.3 3.8 0.5 2.9 1.5 -0.4 

2013 ANNUAL 3.1 4.2 1.0 0.1 -1.4 -3.0 

2013 IV 3.3 4.9 1.6 -0.4 -1.6 -3.5 

 III 3.5 4.1 0.6 1.3 -0.2 -2.1 

 II 3.1 3.5 0.4 0.1 -1.3 -2.9 

 I 2.6 4.1 1.4 -0.7 -2.4 -3.3 

2012 ANNUAL 3.0 6.0 2.9 1.3 -0.7 -1.6 

2012 IV 3.5 5.1 1.5 3.0 1.0 -0.5 

 III 2.5 5.8 3.2 0.2 -1.5 -2.3 

 II 4.1 7.3 3.2 1.6 -0.3 -2.4 

 I 1.8 5.9 4.0 0.7 -2.1 -1.1 

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

 Indexes 2009=100

2014 ANNUAL 123.4 135.7 110.0 106.7 96.7 86.4 

2014 IV 124.6 138.8 111.4 106.8 96.7 85.7 

 III 124.2 r 137.3 r 110.6 r 106.5 r 96.1 r 85.8 r

 II 123.1 r 135.1 r 109.7 106.3 96.2 86.4 r

 I 121.9 131.8 108.2 107.1 97.7 87.9 

2013 ANNUAL 119.6 128.8 107.7 104.7 96.4 87.5 

2013 IV 120.8 131.2 108.6 104.6 95.8 86.6 

 III 120.1 129.1 107.5 105.1 96.5 87.5 

 II 119.5 127.9 107.1 104.8 96.8 87.7 

 I 118.0 127.0 107.7 104.1 96.3 88.3 

2012 ANNUAL 116.0 123.7 106.6 104.6 97.7 90.2 

2012 IV 117.0 125.1 106.9 105.0 97.4 89.8 

 III 116.1 124.0 106.8 103.7 96.8 89.4 

 II 115.9 123.6 106.6 104.6 98.0 90.3 

 I 114.9 122.0 106.2 104.9 98.6 91.3 

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

See footnotes following Table 6. February 5, 2015

r=revised Source: Bureau of Labor Statistics

-9- 
Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,

seasonally adjusted

 Real

 Output Compen- compenYear per hour Hours sation sation Unit

and of all of all per hour per hour labor

quarter persons Output persons (1) (2) costs

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

 Percent change from previous quarter at annual rate(5)

2014 ANNUAL 2.2 2.2 0.1 3.3 1.7 1.2 

2014 IV 0.2 7.0 6.8 2.2 3.4 2.0 

 III 3.8 r 2.7 r -1.1 r 2.6 r 1.5 r -1.2 r

 II 4.7 4.0 -0.6 -0.1 -3.0 -4.5 

 I 2.8 1.4 -1.4 6.8 4.8 3.9 

2013 ANNUAL 1.2 1.3 0.1 1.6 0.2 0.4 

2013 IV 0.3 2.3 2.0 5.7 4.4 5.3 

 III -0.8 -0.4 0.4 -0.4 -2.4 0.4 

 II 2.2 -0.1 -2.3 3.4 2.9 1.2 

 I 3.4 3.1 -0.3 -0.5 -1.6 -3.8 

2012 ANNUAL 0.0 1.3 1.3 2.4 0.3 2.4 

2012 IV 0.6 1.2 0.7 2.9 0.4 2.3 

 III -0.2 1.7 1.9 0.8 -0.9 1.0 

 II -0.5 -0.1 0.4 3.0 1.6 3.5 

 I -0.5 2.6 3.2 8.3 6.1 8.9 

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

 Percent change from corresponding quarter of previous year

2014 ANNUAL 2.2 2.2 0.1 3.3 1.7 1.2 

2014 IV 2.9 3.7 0.9 2.8 1.6 0.0 

 III 2.9 r 2.6 r -0.3 r 3.7 1.9 0.8 r

 II 1.7 1.8 0.1 2.9 0.9 1.2 

 I 1.1 0.8 -0.3 3.8 2.4 2.7 

2013 ANNUAL 1.2 1.3 0.1 1.6 0.2 0.4 

2013 IV 1.3 1.2 -0.1 2.0 0.8 0.7 

 III 1.3 0.9 -0.4 1.3 -0.2 0.0 

 II 1.5 1.5 0.0 1.6 0.2 0.1 

 I 0.8 1.5 0.7 1.5 -0.1 0.7 

2012 ANNUAL 0.0 1.3 1.3 2.4 0.3 2.4 

2012 IV -0.2 1.4 1.5 3.7 1.8 3.9 

 III -0.4 1.2 1.5 2.2 0.5 2.6 

 II 0.2 1.3 1.1 2.0 0.1 1.9 

 I 0.4 1.2 0.8 1.5 -1.3 1.1 

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

 Indexes 2009=100

2014 ANNUAL 107.6 108.6 101.0 110.0 99.7 102.3 

2014 IV 108.4 110.6 102.0 110.8 100.3 102.2 

 III 108.4 r 108.8 r 100.4 r 110.2 r 99.5 r 101.7 r

 II 107.3 108.1 100.7 109.5 99.1 102.0 

 I 106.1 107.0 100.8 109.5 99.9 103.2 

2013 ANNUAL 105.3 106.2 100.9 106.5 98.0 101.1 

2013 IV 105.4 106.6 101.2 107.7 98.7 102.2 

 III 105.3 106.0 100.7 106.3 97.7 100.9 

 II 105.5 106.1 100.6 106.4 98.3 100.8 

 I 105.0 106.2 101.1 105.5 97.5 100.5 

2012 ANNUAL 104.0 104.9 100.8 104.8 97.9 100.7 

2012 IV 104.1 105.4 101.2 105.6 98.0 101.5 

 III 103.9 105.0 101.1 104.9 97.9 100.9 

 II 104.0 104.6 100.6 104.7 98.1 100.7 

 I 104.1 104.6 100.5 103.9 97.7 99.8 

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

See footnotes following Table 6. February 5, 2015

r=revised Source: Bureau of Labor Statistics

-10- 
Table 6. Nonfinancial corporate sector: Productivity, hourly compensation, unit labor costs, unit profits,

and prices, seasonally adjusted

 Real Unit

 Output Hourly hourly non- Total Unit Implicit

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

and employee Employee sation sation labor costs cost fits deflator

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

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

 Percent change from previous quarter at annual rate(5)

2014 III 1.7 r 4.6 r 2.9 0.9 -0.2 -0.8 r 1.1 r -0.2 r 5.7 r 0.7 

 II 2.0 6.5 4.5 -1.5 -4.4 -3.4 -6.1 -4.3 47.3 1.7 

 I -1.1 0.7 1.8 6.5 4.5 7.6 2.3 5.9 -26.9 0.5 

2013 ANNUAL 0.3 2.3 2.0 1.4 -0.1 1.1 0.1 0.8 1.4 0.9 

2013 IV 0.1 2.2 2.1 0.8 -0.4 0.8 0.7 0.7 -3.9 0.0 

 III -2.0 0.4 2.4 -0.5 -2.5 1.6 2.3 1.8 -2.7 1.1 

 II 2.9 4.5 1.6 2.2 1.7 -0.6 -2.6 -1.3 8.5 0.1 

 I -1.4 1.6 3.1 -1.8 -2.9 -0.4 2.7 0.6 -1.9 0.2 

2012 ANNUAL 1.9 4.3 2.3 2.9 0.8 0.9 -0.7 0.4 7.9 1.4 

2012 IV 4.0 5.6 1.5 7.9 5.3 3.7 -3.3 1.4 4.5 1.8 

 III -3.6 -2.2 1.5 -0.2 -1.9 3.6 2.3 3.1 -5.7 1.8 

 II 1.6 2.4 0.8 0.3 -1.1 -1.3 -0.2 -0.9 15.5 1.3 

 I 6.1 9.6 3.3 13.5 11.1 6.9 -2.6 3.6 -1.4 2.9 

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

 Percent change from corresponding quarter of previous year

2014 III 0.6 r 3.5 r 2.8 1.6 -0.2 1.0 r -0.6 r 0.5 r 2.3 r 0.7 

 II -0.3 2.4 2.7 1.3 -0.8 1.6 -0.3 1.0 0.2 0.8 

 I -0.1 1.9 2.0 2.2 0.8 2.3 0.7 1.7 -7.2 0.4 

2013 ANNUAL 0.3 2.3 2.0 1.4 -0.1 1.1 0.1 0.8 1.4 0.9 

2013 IV -0.1 2.2 2.3 0.2 -1.0 0.3 0.7 0.5 -0.1 0.4 

 III 0.8 3.0 2.1 1.9 0.4 1.0 -0.3 0.6 2.0 0.8 

 II 0.4 2.3 1.9 2.0 0.5 1.5 -0.3 0.9 1.2 1.0 

 I 0.1 1.8 1.7 1.5 -0.2 1.4 0.4 1.0 2.8 1.3 

2012 ANNUAL 1.9 4.3 2.3 2.9 0.8 0.9 -0.7 0.4 7.9 1.4 

2012 IV 2.0 3.8 1.8 5.2 3.2 3.2 -1.0 1.8 2.9 2.0 

 III 1.8 3.8 2.0 2.1 0.5 0.3 -0.7 0.0 4.1 0.5 

 II 2.0 4.4 2.4 2.4 0.5 0.4 -0.5 0.1 8.8 1.3 

 I 2.0 5.3 3.2 1.7 -1.1 -0.4 -0.7 -0.5 17.3 1.7 

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

 Indexes 2009=100

2014 III 108.1 r 119.7 r 110.8 r 109.9 r 99.2 r 101.7 r 97.5 r 100.3 r 150.3 r 105.5 r

 II 107.6 118.4 110.0 109.6 99.2 101.9 97.3 100.3 148.2 105.3 

 I 107.1 116.5 108.8 110.1 100.4 102.8 98.8 101.4 134.6 104.9 

2013 ANNUAL 107.5 115.5 107.5 108.1 99.5 100.6 98.0 99.7 146.4 104.6 

2013 IV 107.4 116.3 108.3 108.3 99.3 100.9 98.2 100.0 145.5 104.8 

 III 107.4 115.7 107.8 108.1 99.3 100.7 98.1 99.8 147.0 104.8 

 II 107.9 115.6 107.1 108.2 100.0 100.3 97.5 99.4 148.0 104.5 

 I 107.2 114.3 106.7 107.7 99.5 100.5 98.2 99.7 145.0 104.4 

2012 ANNUAL 107.1 112.9 105.4 106.6 99.6 99.5 97.9 99.0 144.3 103.7 

2012 IV 107.5 113.9 105.9 108.2 100.3 100.6 97.5 99.6 145.7 104.4 

 III 106.5 112.3 105.5 106.1 99.0 99.7 98.3 99.2 144.1 103.9 

 II 107.5 113.0 105.1 106.2 99.5 98.8 97.8 98.4 146.2 103.4 

 I 107.1 112.3 104.9 106.1 99.7 99.1 97.8 98.7 141.1 103.1 

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

See footnotes following Table 6. February 5, 2015

r=revised Source: Bureau of Labor Statistics

-11- 
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 –1.6 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 third quarter of 2014. 

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 1978-2013 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. 

-12-