Transmission of material in this release is embargoed until USDL-09-1478 

8:30 a.m. (EST) Thursday, December 3, 2009 

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, 

2004Q1 – 2009Q3

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

2004 2005 2006 2007 2008 2009

From previous quarter, annual rate

From same quarter a year ago

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

2004 2005 2006 2007 2008 2009

From previous quarter, annual rate

From same quarter a year ago

Percent change Percent change

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

2004Q1 – 2009Q3

PRODUCTIVITY AND COSTS

Third Quarter 2009, Revised

Nonfarm business sector labor productivity increased at an 8.1 percent annual rate during the third

quarter of 2009, the U.S. Bureau of Labor Statistics reported today (chart 1, tables A and 2). This was 

the largest gain in productivity since the third quarter of 2003, and reflects a 2.9 percent increase in 

output and a 4.8 percent decline in hours worked. (All quarterly percent changes in this release are 

seasonally adjusted annual rates.) 

Labor productivity is calculated by dividing an index of real output by an index of the combined hours 

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

measures released today were based on more recent and more complete data than were available for the 

preliminary report issued last month (see Revised measures, page 2). 

Unit labor costs in nonfarm businesses fell 2.5 percent in the third quarter of 2009, as productivity 

grew at a faster rate (8.1 percent) than hourly compensation (5.4 percent). Unit labor costs declined 1.4 

percent over the last four quarters (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 13.4 percent in the third quarter of 2009, as output rose 8.4 

percent and hours worked fell 4.4 percent (tables A and 3). The third quarter gain in manufacturing 

productivity was the largest in the series, which begins in the second quarter of 1987. Over the last four 

quarters, manufacturing productivity grew 3.0 percent. Manufacturing unit labor costs fell 6.1 percent 

in the third quarter of 2009, but rose 3.0 percent over the last four quarters. 

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 more information on data sources (page 4). 

Revised measures

Table B presents previous and revised productivity and related measures for the major sectors: business, 

nonfarm business and manufacturing, for the second and third quarters of 2009. 

In the third quarter of 2009, nonfarm business productivity was revised down from 9.5 percent to 8.1 

percent, reflecting a downward revision to output and an upward revision to hours. Unit labor costs 

declined 2.5 percent rather than falling 5.2 percent as previously reported; this upward revision was due 

both to the downward revision to productivity and the 1.6 percentage-point upward revision to hourly 

compensation. In the manufacturing sector, upward revisions to both output and hours affected 

productivity, which was revised slightly down by 0.2 percentage point. 

In the second quarter of 2009, nonfarm business productivity was not revised. However, unit labor 

costs were revised to show zero growth during the second quarter rather than decreasing 6.1 percent as 

previously reported. This upward revision to unit labor costs was due solely to the large upward revision 

to hourly compensation. In the manufacturing sector, second quarter productivity was not revised; unit 

labor costs were revised upward by 1.3 percentage points. 

___________

The preliminary Productivity and Costs press release for fourth-quarter 2009 is scheduled to be 

released on Thursday, February 4, 2010 at 8:30 a.m. (EST).
-3- 

Table A. Revised third-quarter 2009 measures, percent change from previous quarter, 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 8.1 4.0 8.5 4.0 13.4 3.0 20.3 -1.1 6.1 4.9

Output 2.9 -3.7 3.1 -3.6 8.4 -10.7 13.1 -16.8 4.2 -4.4

Hours -4.8 -7.4 -5.0 -7.3 -4.4 -13.3 -6.0 -15.9 -1.8 -8.9

Hourly compensation 5.4 2.5 5.8 2.5 6.5 6.1 7.3 7.4 5.5 4.3

Real hourly compensation 1.8 4.1 2.1 4.1 2.8 7.7 3.5 9.1 1.8 5.9

Unit labor costs -2.5 -1.4 -2.4 -1.5 -6.1 3.0 -10.9 8.6 -0.5 -0.6

Table B. Revised and previous measures for: third quarter and second quarter 2009

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 2009 

Productivity 8.1 9.5 8.5 9.8 13.4 13.6 20.3 21.2 6.1 5.5

Output 2.9 4.0 3.1 4.1 8.4 7.7 13.1 12.4 4.2 3.4

Hours -4.8 -5.0 -5.0 -5.1 -4.4 -5.2 -6.0 -7.2 -1.8 -2.0

Hourly compensation 5.4 3.8 5.8 4.2 6.5 5.5 7.3 6.0 5.5 5.2

Real hourly compensation 1.8 0.2 2.1 0.5 2.8 1.9 3.5 2.3 1.8 1.6

Unit labor costs -2.5 -5.2 -2.4 -5.1 -6.1 -7.1 -10.9 -12.5 -0.5 -0.3

Percent change, annual rate, second quarter 2009 

Productivity 6.9 6.9 6.8 6.8 6.8 6.8 3.6 3.7 5.3 5.2

Output -1.1 -1.1 -1.0 -1.0 -8.1 -8.1 -16.0 -15.9 0.0 -0.2

Hours -7.5 -7.5 -7.4 -7.4 -13.9 -13.9 -18.9 -18.9 -5.1 -5.1

Hourly compensation 6.9 0.3 6.7 0.2 6.5 5.1 11.5 7.9 -0.7 1.3

Real hourly compensation 5.5 -1.0 5.3 -1.1 5.1 3.7 10.0 6.5 -2.0 0.0

Unit labor costs 0.0 -6.1 -0.2 -6.2 -0.3 -1.6 7.6 4.1 -5.8 -3.7

Table C. Nonfinancial corporations: preliminary third quarter and revised second quarter 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, third quarter 2009

Q to Q 5.3 0.2 -4.8 5.2 1.5 -0.1 7.8 -1.6

Y to Y 1.1 -6.7 -7.7 2.3 3.9 1.2 -6.2 1.2

Percent change, annual rate, second quarter 2009

Revised 8.4 -0.6 -8.3 4.5 3.2 -3.6 21.0 -1.3

Previous 6.6 -2.2 -8.3 1.8 0.5 -4.5 23.0 -1.3
-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 
-5- 

engaged in a sector, they do not measure the specific contribution of labor, capital, or any other factor of 

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

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

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

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

2007 I 139.0 168.4 121.2 175.2 122.7 126.0 136.7 130.0

 II 140.2 169.8 121.2 176.5 122.4 125.9 139.4 130.9

 III 142.1 171.4 120.6 177.8 122.6 125.1 141.9 131.4

 IV 142.6 172.3 120.8 179.6 122.1 125.9 141.9 131.9

 ANNUAL 141.0 170.5 120.9 177.3 122.4 125.7 140.0 131.0

2008 I 142.7 171.7 120.3 180.3 121.2 126.3 141.7 132.1

 II 143.8 172.2 119.8 181.0 120.4 125.9 143.8 132.5

 III 143.9 170.6 118.6 183.0 119.9 127.2 145.4 134.0

 IV 144.2 167.4 116.1 184.2 123.3 127.7 143.6 133.6

 ANNUAL 143.6 170.5 118.7 182.1 121.1 126.8 143.6 133.0

2009 I 144.3 163.6 113.4 182.0 122.6 126.1 148.1 134.3

 II 146.7 163.2 111.3 r184.9 r124.1 r126.1 r147.9 134.2

 III r149.7 r164.5 r109.9 r187.6 r124.8 r125.3 r149.4 r134.3

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

 Percent change from previous quarter at annual rate(5)

2007 I 0.9 0.8 -0.1 4.4 0.6 3.5 4.8 4.0

 II 3.5 3.5 0.0 3.1 -1.1 -0.4 8.0 2.8

 III 5.5 3.7 -1.7 3.0 0.6 -2.4 7.4 1.4

 IV 1.6 2.1 0.5 4.3 -1.4 2.6 0.2 1.6

 ANNUAL 1.8 2.2 0.4 4.2 1.3 2.4 3.0 2.6

2008 I 0.2 -1.3 -1.5 1.5 -3.0 1.3 -0.5 0.6

 II 3.1 1.1 -1.9 1.6 -2.8 -1.5 5.9 1.4

 III 0.3 -3.7 -4.0 4.5 -1.6 4.2 4.5 4.3

 IV 0.8 -7.2 -8.0 2.6 12.0 1.8 -4.9 -1.0

 ANNUAL 1.9 0.0 -1.9 2.7 -1.1 0.8 2.6 1.5

2009 I 0.2 -8.7 -8.9 -4.7 -2.4 -4.9 13.3 2.1

 II 6.8 -1.0 -7.4 r6.7 r5.3 r-0.2 r-0.5 -0.3

 III r8.5 r3.1 r-5.0 r5.8 r2.1 r-2.4 r4.2 r0.2

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

 Percent change from corresponding quarter of previous year

2007 I 0.3 1.5 1.1 4.0 1.6 3.7 1.6 2.9

 II 1.0 2.0 0.9 4.4 1.7 3.3 1.9 2.8

 III 3.0 3.0 0.0 4.8 2.4 1.7 3.3 2.4

 IV 2.9 2.5 -0.3 3.7 -0.3 0.8 5.1 2.5

 ANNUAL 1.8 2.2 0.4 4.2 1.3 2.4 3.0 2.6

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

 II 2.6 1.4 -1.2 2.6 -1.7 0.0 3.2 1.2

 III 1.3 -0.5 -1.7 2.9 -2.2 1.6 2.5 2.0

 IV 1.1 -2.8 -3.9 2.5 1.0 1.4 1.2 1.3

 ANNUAL 1.9 0.0 -1.9 2.7 -1.1 0.8 2.6 1.5

2009 I 1.1 -4.7 -5.7 0.9 1.1 -0.2 4.5 1.7

 II 2.0 -5.2 -7.1 r2.2 r3.1 r0.2 r2.9 1.3

 III r4.0 r-3.6 r-7.3 r2.5 r4.1 r-1.5 r2.8 r0.3

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

See footnotes following Table 6. December 3, 2009

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

2007 I 138.2 168.8 122.1 174.2 122.1 126.0 138.2 130.5

 II 139.2 170.3 122.4 175.1 121.4 125.8 140.9 131.4

 III 141.1 172.0 121.9 176.3 121.5 125.0 143.3 131.7

 IV 141.8 172.8 121.9 178.5 121.3 125.9 143.0 132.2

 ANNUAL 140.1 171.0 122.1 176.0 121.6 125.7 141.4 131.5

2008 I 141.7 172.0 121.4 179.2 120.5 126.4 142.5 132.3

 II 142.8 172.6 120.8 179.8 119.6 125.9 144.9 132.9

 III 142.8 170.8 119.6 181.8 119.1 127.3 146.6 134.4

 IV 143.1 167.5 117.0 183.1 122.6 128.0 145.3 134.3

 ANNUAL 142.6 170.7 119.7 181.0 120.4 126.9 144.8 133.5

2009 I 143.2 163.7 114.3 180.9 121.9 126.3 150.5 135.2

 II 145.6 163.2 112.1 r183.9 r123.5 r126.3 r150.2 135.1

 III r148.5 r164.4 r110.7 r186.4 r124.0 r125.5 r152.0 r135.3

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

 Percent change from previous quarter at annual rate(5)

2007 I 1.2 0.9 -0.3 4.7 0.8 3.5 3.9 3.6

 II 2.8 3.7 0.9 2.0 -2.1 -0.7 8.1 2.7

 III 5.5 3.9 -1.5 2.7 0.3 -2.7 7.0 1.1

 IV 2.0 1.8 -0.2 5.0 -0.7 3.0 -0.9 1.4

 ANNUAL 1.8 2.3 0.5 4.2 1.3 2.3 2.4 2.3

2008 I -0.1 -1.7 -1.6 1.7 -2.8 1.7 -1.5 0.5

 II 3.1 1.3 -1.7 1.3 -3.0 -1.8 6.9 1.6

 III -0.1 -4.0 -3.9 4.5 -1.6 4.6 4.7 4.6

 IV 0.8 -7.6 -8.3 2.9 12.3 2.0 -3.5 -0.2

 ANNUAL 1.8 -0.1 -1.9 2.8 -1.0 1.0 2.4 1.5

2009 I 0.3 -8.8 -9.0 -4.7 -2.4 -5.0 15.2 2.7

 II 6.9 -1.1 -7.5 r6.9 r5.5 r0.0 r-0.8 -0.3

 III r8.1 r2.9 r-4.8 r5.4 r1.8 r-2.5 r5.0 r0.5

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

 Percent change from corresponding quarter of previous year

2007 I 0.5 1.5 0.9 4.3 1.8 3.7 1.0 2.7

 II 1.1 2.1 1.1 4.3 1.6 3.1 1.3 2.4

 III 2.9 3.2 0.2 4.6 2.2 1.6 2.8 2.1

 IV 2.8 2.6 -0.3 3.6 -0.4 0.7 4.5 2.2

 ANNUAL 1.8 2.3 0.5 4.2 1.3 2.3 2.4 2.3

2008 I 2.5 1.9 -0.6 2.9 -1.3 0.3 3.1 1.4

 II 2.6 1.3 -1.3 2.7 -1.5 0.1 2.8 1.1

 III 1.2 -0.7 -1.9 3.1 -2.0 1.9 2.3 2.0

 IV 0.9 -3.0 -4.0 2.6 1.0 1.6 1.6 1.6

 ANNUAL 1.8 -0.1 -1.9 2.8 -1.0 1.0 2.4 1.5

2009 I 1.0 -4.8 -5.8 0.9 1.1 -0.1 5.6 2.2

 II 1.9 -5.4 -7.2 r2.3 r3.3 r0.3 r3.7 1.7

 III r4.0 r-3.7 r-7.4 r2.5 r4.1 r-1.4 r3.7 r0.7

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

See footnotes following Table 6. December 3, 2009

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

2007 I 176.9 148.0 83.7 172.9 121.1 97.7

 II 178.2 149.3 83.8 172.9 119.9 97.0

 III 180.1 150.3 83.4 172.9 119.2 96.0

 IV 181.6 150.4 82.8 175.6 119.4 96.7

 ANNUAL 179.2 149.5 83.4 173.6 119.9 96.9

2008 I 182.8 149.9 82.0 175.7 118.1 96.1

 II 181.6 148.0 81.5 176.9 117.6 97.4

 III 180.3 144.4 80.1 178.8 117.1 99.2

 IV 178.1 137.2 77.0 183.9 123.1 103.2

 ANNUAL 180.7 144.9 80.2 178.7 118.9 98.9

2009 I 177.0 129.1 72.9 183.7 123.7 103.8

 II r179.9 r126.4 70.2 r186.6 r125.3 r103.7

 III r185.7 r129.0 r69.5 r189.6 r126.1 r102.1

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

 Percent change from previous quarter at annual rate(5)

2007 I 3.7 1.8 -1.9 8.2 4.2 4.3

 II 3.0 3.4 0.4 0.0 -4.1 -3.0

 III 4.4 2.7 -1.6 0.1 -2.2 -4.1

 IV 3.3 0.3 -2.9 6.5 0.7 3.1

 ANNUAL 3.2 1.3 -1.8 4.3 1.4 1.1

2008 I 2.6 -1.2 -3.7 0.1 -4.3 -2.5

 II -2.5 -5.2 -2.7 2.8 -1.6 5.4

 III -2.9 -9.3 -6.5 4.3 -1.7 7.5

 IV -4.7 -18.4 -14.4 12.0 22.2 17.5

 ANNUAL 0.8 -3.1 -3.9 3.0 -0.8 2.1

2009 I -2.5 -21.7 -19.8 -0.4 2.0 2.2

 II 6.8 -8.1 -13.9 r6.5 r5.1 r-0.3

 III r13.4 r8.4 r-4.4 r6.5 r2.8 r-6.1

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

 Percent change from corresponding quarter of previous year

2007 I 2.5 0.4 -2.0 4.3 1.9 1.8

 II 3.3 1.3 -2.0 4.9 2.1 1.5

 III 3.3 1.6 -1.6 4.5 2.1 1.2

 IV 3.6 2.0 -1.5 3.6 -0.4 0.0

 ANNUAL 3.2 1.3 -1.8 4.3 1.4 1.1

2008 I 3.3 1.3 -2.0 1.6 -2.5 -1.7

 II 1.9 -0.9 -2.7 2.3 -1.9 0.4

 III 0.1 -3.9 -4.0 3.4 -1.8 3.3

 IV -1.9 -8.7 -7.0 4.7 3.1 6.7

 ANNUAL 0.8 -3.1 -3.9 3.0 -0.8 2.1

2009 I -3.1 -13.9 -11.1 4.6 4.8 8.0

 II -0.9 -14.6 -13.8 r5.5 r6.5 r6.5

 III r3.0 r-10.7 r-13.3 r6.1 r7.7 r3.0

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

See footnotes following Table 6. December 3, 2009

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

2007 I 204.1 180.4 88.4 168.0 117.7 82.3

 II 206.9 183.0 88.5 167.3 116.0 80.9

 III 209.7 185.0 88.2 167.5 115.5 79.9

 IV 212.9 185.7 87.2 170.1 115.6 79.9

 ANNUAL 208.4 183.5 88.1 168.2 116.2 80.7

2008 I 213.6 185.3 86.8 169.5 113.9 79.4

 II 211.1 181.8 86.1 171.2 113.8 81.1

 III 212.2 178.1 83.9 173.7 113.8 81.8

 IV 204.3 165.1 80.8 178.1 119.2 87.2

 ANNUAL 210.4 177.6 84.4 173.0 115.1 82.2

2009 I 198.7 150.1 75.6 178.4 120.1 89.8

 II r200.4 r143.7 71.7 r183.3 r123.0 r91.4

 III r209.9 r148.2 r70.6 r186.5 r124.1 r88.9

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

 Percent change from previous quarter at annual rate(5)

2007 I 4.2 1.2 -2.9 10.1 6.0 5.6

 II 5.6 6.0 0.4 -1.7 -5.7 -6.9

 III 5.6 4.4 -1.1 0.4 -1.9 -4.9

 IV 6.3 1.4 -4.5 6.3 0.5 0.1

 ANNUAL 4.0 1.8 -2.1 4.7 1.8 0.7

2008 I 1.2 -0.9 -2.0 -1.4 -5.7 -2.5

 II -4.6 -7.3 -2.9 4.1 -0.4 9.1

 III 2.2 -7.9 -9.9 5.9 -0.2 3.6

 IV -14.2 -26.2 -14.1 10.5 20.6 28.8

 ANNUAL 0.9 -3.3 -4.2 2.8 -1.0 1.9

2009 I -10.5 -31.6 -23.5 0.7 3.1 12.6

 II r3.6 r-16.0 -18.9 r11.5 r10.0 r7.6

 III r20.3 r13.1 r-6.0 r7.3 r3.5 r-10.9

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

 Percent change from corresponding quarter of previous year

2007 I 2.6 0.3 -2.3 4.9 2.4 2.2

 II 4.1 1.4 -2.6 5.3 2.6 1.2

 III 4.0 2.3 -1.6 5.0 2.7 1.0

 IV 5.4 3.2 -2.1 3.7 -0.3 -1.6

 ANNUAL 4.0 1.8 -2.1 4.7 1.8 0.7

2008 I 4.6 2.7 -1.8 0.9 -3.2 -3.6

 II 2.0 -0.7 -2.6 2.3 -1.9 0.3

 III 1.2 -3.7 -4.9 3.7 -1.5 2.5

 IV -4.1 -11.1 -7.3 4.7 3.1 9.1

 ANNUAL 0.9 -3.3 -4.2 2.8 -1.0 1.9

2009 I -7.0 -19.0 -12.9 5.3 5.5 13.1

 II -5.0 r-21.0 -16.8 r7.1 r8.1 r12.8

 III r-1.1 r-16.8 r-15.9 r7.4 r9.1 r8.6

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

See footnotes following Table 6. December 3, 2009

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

2007 I 151.3 115.9 76.6 179.7 125.9 118.8

 II 151.4 116.0 76.7 181.2 125.6 119.7

 III 152.6 116.3 76.2 180.9 124.7 118.5

 IV 152.3 116.0 76.2 184.1 125.1 120.8

 ANNUAL 151.9 116.1 76.4 181.5 125.3 119.5

2008 I 154.3 115.6 74.9 185.2 124.5 120.0

 II 154.2 114.8 74.4 185.3 123.2 120.2

 III 150.1 111.6 74.4 186.3 122.1 124.1

 IV 152.3 108.7 71.4 192.8 129.1 126.6

 ANNUAL 152.7 112.7 73.8 187.4 124.6 122.7

2009 I 153.2 105.6 69.0 192.1 129.4 125.4

 II r155.2 r105.6 68.1 r191.8 r128.7 r123.6

 III r157.5 r106.7 r67.7 r194.3 r129.3 r123.4

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

 Percent change from previous quarter at annual rate(5)

2007 I 2.4 2.4 0.0 4.9 1.1 2.4

 II 0.3 0.7 0.4 3.3 -0.9 3.0

 III 3.4 0.8 -2.5 -0.6 -2.9 -3.9

 IV -0.9 -0.9 0.0 7.1 1.3 8.0

 ANNUAL 2.0 0.9 -1.1 3.6 0.8 1.6

2008 I 5.4 -1.4 -6.5 2.6 -1.9 -2.7

 II -0.4 -2.8 -2.5 0.2 -4.0 0.6

 III -10.2 -10.6 -0.5 2.1 -3.8 13.7

 IV 6.0 -9.9 -15.0 14.7 25.2 8.2

 ANNUAL 0.6 -2.9 -3.4 3.3 -0.6 2.7

2009 I 2.2 -11.1 -13.0 -1.5 0.9 -3.6

 II r5.3 r0.0 -5.1 r-0.7 r-2.0 r-5.8

 III r6.1 r4.2 r-1.8 r5.5 r1.8 r-0.5

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

 Percent change from corresponding quarter of previous year

2007 I 2.3 0.7 -1.6 3.4 0.9 1.1

 II 2.1 1.2 -0.9 4.1 1.4 2.0

 III 2.5 0.9 -1.6 3.4 1.1 0.9

 IV 1.3 0.8 -0.5 3.7 -0.4 2.3

 ANNUAL 2.0 0.9 -1.1 3.6 0.8 1.6

2008 I 2.0 -0.2 -2.2 3.1 -1.1 1.0

 II 1.9 -1.1 -2.9 2.3 -1.9 0.4

 III -1.7 -4.0 -2.4 3.0 -2.1 4.7

 IV 0.0 -6.3 -6.3 4.8 3.2 4.8

 ANNUAL 0.6 -2.9 -3.4 3.3 -0.6 2.7

2009 I -0.8 -8.7 -8.0 3.7 3.9 4.5

 II 0.6 r-8.0 -8.6 r3.5 r4.5 r2.8

 III r4.9 r-4.4 -8.9 r4.3 r5.9 r-0.6

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

See footnotes following Table 6. December 3, 2009

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 143.5 175.1 122.0 164.2 115.0 114.4 123.1 116.8 171.2 121.8

 II 144.5 176.5 122.1 165.2 114.6 114.4 124.9 117.2 171.8 122.2

 III 144.1 175.8 122.0 166.2 114.5 115.3 127.4 118.6 155.6 122.0

 IV 145.9 178.5 122.3 168.3 114.4 115.3 127.9 118.7 149.9 121.6

 ANNUAL 144.5 176.5 122.1 166.0 114.6 114.9 125.8 117.8 162.1 121.9

2008 I 145.0 176.9 122.0 168.6 113.4 116.3 129.1 119.8 133.0 121.0

 II 147.4 178.8 121.3 169.7 112.9 115.1 129.2 118.9 134.7 120.4

 III 148.6 178.4 120.1 171.8 112.5 115.6 129.8 119.4 145.3 121.8

 IV 148.0 174.6 117.9 173.7 116.3 117.3 134.1 121.8 129.5 122.5

 ANNUAL 147.2 177.2 120.3 170.9 113.7 116.1 130.5 120.0 135.7 121.4

2009 I 145.3 166.6 114.7 171.6 115.6 118.1 139.1 123.8 127.5 124.1

 II r148.2 r166.4 112.3 r173.5 r116.5 r117.1 r138.0 r122.7 r133.8 r123.7

 III 150.1 166.5 110.9 175.7 116.9 117.0 135.0 121.9 136.3 123.2

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

 Percent change from previous quarter at annual rate(5)

2007 I -0.2 0.2 0.4 4.3 0.4 4.5 7.5 5.3 -10.2 3.2

 II 2.8 3.2 0.4 2.5 -1.6 -0.3 5.8 1.4 1.5 1.4

 III -1.1 -1.5 -0.4 2.3 -0.1 3.4 8.2 4.8 -32.7 -0.7

 IV 5.3 6.2 0.9 5.3 -0.4 0.0 1.5 0.5 -13.8 -1.3

 ANNUAL 1.0 1.7 0.7 3.6 0.8 2.6 5.8 3.5 -9.9 1.7

2008 I -2.7 -3.6 -1.0 0.7 -3.7 3.5 3.9 3.6 -38.0 -1.9

 II 6.9 4.4 -2.4 2.6 -1.8 -4.0 0.5 -2.7 5.0 -2.0

 III 3.2 -0.8 -3.9 4.9 -1.2 1.6 1.8 1.6 35.5 4.8

 IV -1.4 -8.3 -6.9 4.6 14.1 6.1 13.9 8.3 -37.0 2.4

 ANNUAL 1.9 0.4 -1.5 3.0 -0.8 1.1 3.7 1.8 -16.3 -0.4

2009 I -7.3 -17.1 -10.5 -4.7 -2.4 2.9 15.8 6.6 -5.8 5.3

 II r8.4 r-0.6 -8.3 r4.5 r3.2 r-3.6 r-3.2 r-3.5 r21.0 -1.3

 III 5.3 0.2 -4.8 5.2 1.5 -0.1 -8.2 -2.6 7.8 -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 1.7 2.6 0.9 3.7 1.0 2.0 5.0 2.8 -2.2 2.1

 III 0.5 0.9 0.4 4.0 1.6 3.5 7.0 4.5 -18.7 1.1

 IV 1.6 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 0.8 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 2.0 1.3 -0.7 2.7 -1.5 0.7 3.5 1.5 -21.6 -1.5

 III 3.1 1.5 -1.6 3.4 -1.8 0.2 1.9 0.7 -6.6 -0.1

 IV 1.4 -2.2 -3.6 3.2 1.6 1.7 4.9 2.6 -13.6 0.8

 ANNUAL 1.9 0.4 -1.5 3.0 -0.8 1.1 3.7 1.8 -16.3 -0.4

2009 I 0.2 -5.8 -6.0 1.8 2.0 1.6 7.7 3.4 -4.1 2.6

 II r0.6 r-6.9 -7.4 r2.2 r3.2 r1.7 r6.8 r3.2 r-0.7 2.8

 III 1.1 -6.7 -7.7 2.3 3.9 1.2 4.0 2.1 -6.2 1.2

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

See footnotes following Table 6. December 3, 2009

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 +1.4 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 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 1978-2008 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.