Transmission of material in this release is embargoed until USDL-10-1518 

8:30 a.m. (EDT) Thursday, November 4, 2010 

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

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

PRODUCTIVITY AND COSTS

Third Quarter 2010, Preliminary

Nonfarm business sector labor productivity increased at a 1.9 percent annual rate during the third 

quarter of 2010, the U.S. Bureau of Labor Statistics reported today. 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. Output increased 3.0 percent and hours 

worked increased 1.1 percent in the third quarter. (All quarterly percent changes in this release are 

seasonally adjusted annual rates.) Productivity increased 2.5 percent over the last four quarters, as output 

rose 4.1 percent and hours worked rose 1.6 percent (chart 1, tables A and 2). 

Unit labor costs in nonfarm businesses decreased 0.1 percent in the third quarter of 2010, because

productivity grew 1.9 percent while hourly compensation increased 1.8 percent. From the third quarter 

of 2009 to the third quarter of 2010, unit labor costs declined 1.9 percent (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. 

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

2005Q1 – 2010Q3

-9.0

-7.0

-5.0

-3.0

-1.0

1.0

3.0

5.0

7.0

9.0

2005 2006 2007 2008 2009 2010

From previous quarter, annual rate

From same quarter a year ago

-9.0

-7.0

-5.0

-3.0

-1.0

1.0

3.0

5.0

7.0

9.0

2005 2006 2007 2008 2009 2010

From previous quarter, annual rate

From same quarter a year ago

Percent change Percent change

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

2005Q1 – 2010Q3
-2- 

Manufacturing sector productivity rose 0.4 percent in the third quarter of 2010, as output grew 4.0 

percent and hours worked increased 3.6 percent. Over the last four quarters, manufacturing productivity 

increased 3.9 percent as output rose 7.0 percent and hours increased 3.0 percent (tables A and 3). 

Productivity for the sector increased at a 6.3 percent annual rate during the five quarters of the current 

business cycle expansion, which began in the third quarter of 2009. This contrasts with the 1.3 percent 

productivity decline during the recent recession, as measured from the fourth quarter of 2007 through 

the second quarter of 2009. 

In the third quarter of 2010, productivity declined 0.8 percent in the durable goods manufacturing sector 

as output grew more slowly than hours worked; productivity in nondurable goods industries increased 

2.9 percent as output rose 2.2 percent while hours fell 0.7 percent (tables A, 4, and 5). 

Manufacturing unit labor costs fell 0.3 percent in the third quarter of 2010 and 4.6 percent from the 

same quarter a year ago (tables A and 3). The four-quarter decline in unit labor costs reflects a 3.9 

percent increase in productivity and a 0.9 percent decline in hourly compensation. 

The data sources and methods used in the preparation of the manufacturing output series differ from 

those used in preparing the business and nonfarm business output series, and these measures are not 

directly comparable. See Technical Notes for further information on data sources (page 4). 

Revised measures

Nonfarm business productivity for the second quarter of 2010 fell at the same 1.8 percent rate that was 

reported on September 2. Unit labor costs were revised up due to an upward revision in hourly 

compensation. In the manufacturing sector, productivity increased at an annual rate of 5.4 percent in 

the second quarter, rather than 4.1 percent as reported September 2. Manufacturing unit labor costs 

declined 6.4 percent in the second quarter. 

In the nonfinancial corporate sector, revised data for the second quarter of 2010 show that productivity 

fell 1.6 percent, more than the 0.5 percent decline reported previously. After revision, unit labor costs 

increased 0.9 percent in the second quarter, following two quarters of large declines. Unit profits 

increased at a 21.7 percent annual rate in the second quarter of 2010. 

The Bureau of Labor Statistics is conducting a customer survey to solicit suggestions from the public to 

enhance the quality and relevance of BLS productivity data and publications. The survey is available at 

www.bls.gov/lpc until December 15, 2010. 

___________ 

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

on Wednesday, December 1, 2010 at 8:30 a.m. (EST). 
-3- 

Table A. Preliminary third-quarter 2010 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 1.9 2.5 2.2 2.5 0.4 3.9 -0.8 5.4 2.9 2.6

Output 3.0 4.1 3.0 4.1 4.0 7.0 5.6 9.4 2.2 4.2

Hours 1.1 1.6 0.8 1.5 3.6 3.0 6.4 3.9 -0.7 1.6

Hourly compensation 1.8 0.5 2.1 0.4 0.1 -0.9 -1.0 -1.3 1.6 -0.4

Real hourly compensation 0.4 -0.8 0.7 -0.8 -1.4 -2.1 -2.5 -2.5 0.1 -1.6

Unit labor costs -0.1 -1.9 -0.1 -2.0 -0.3 -4.6 -0.2 -6.3 -1.3 -2.9

Table B. Revised and previous measures for: second quarter 2010 

Sector

 Nonfarm

 Business Business Manufacturing

 Durable

 Manufacturing

 Nondurable

 Manufacturing

Revised Previous Revised Previous Revised Previous Revised Previous Revised Previous

Percent change, annual rate

Productivity -1.8 -1.8 -1.8 -1.9 5.4 4.1 11.6 9.9 -1.6 -2.4

Output 1.6 1.6 1.8 1.7 9.6 8.4 15.1 13.6 3.7 2.8

Hours 3.5 3.5 3.7 3.7 4.0 4.1 3.1 3.4 5.3 5.3

Hourly compensation -0.6 -0.7 -0.7 -0.8 -1.3 -2.0 -1.3 -1.9 -1.3 -2.1

Real hourly compensation 0.1 0.0 0.0 -0.1 -0.6 -1.3 -0.5 -1.2 -0.6 -1.4

Unit labor costs 1.3 1.1 1.1 1.1 -6.4 -5.9 -11.5 -10.7 0.3 0.3

Table C. Nonfinancial corporations: revised and previous second-quarter 2010 productivity and cost measures

Productivity Output Hours

Hourly 

compensation

Real hourly 

compensation

Unit labor 

costs Unit profits

Implicit price 

deflator

Percent change, annual rate

Revised -1.6 2.7 4.3 -0.7 0.0 0.9 21.7 2.6

Previous -0.5 4.0 4.5 -1.0 -0.3 -0.5 31.2 2.7
-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 75 percent of the value of GDP in 2009. Nonfarm 

business, which excludes farming, accounted for about 74 percent of GDP in 2009. 

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 47 percent of the value of GDP in 2009. 

Productivity: These productivity measures describe the relationship between real output and the labor 

time involved in its production. They show the changes from period to period in the amount of goods 

and services produced per hour. Although these measures relate output to hours at work of all persons 

engaged in a sector, they do not measure the specific contribution of labor, capital, or any other factor of 
-5- 

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

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

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

Labor Compensation: 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. 

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 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 2005=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) 

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

 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)

2010 III 2.2 3.0 0.8 2.1 0.7 -0.1 6.1 2.5 

 II -1.8 r 1.8 r 3.7 -0.7 r 0.0 r 1.1 4.4 r 2.5 

 I 3.5 5.0 1.4 -1.1 -2.6 -4.5 9.6 1.2 

2009 ANNUAL 3.5 -3.7 -6.9 1.8 2.2 -1.6 3.8 0.5 

2009 IV 6.1 6.5 0.3 1.5 -1.2 -4.4 5.2 -0.5 

 III 7.2 1.6 -5.3 3.8 0.0 -3.2 7.4 0.9 

 II 8.3 -0.3 -7.9 9.0 7.1 0.6 -2.9 -0.8 

 I 3.5 -6.2 -9.4 -3.6 -1.5 -6.9 13.6 0.8 

2008 ANNUAL 1.1 -0.9 -2.0 3.2 -0.6 2.1 1.4 1.8 

2008 IV -0.3 -9.3 -9.0 0.8 11.0 1.1 -7.9 -2.6 

 III -1.1 -6.1 -5.0 3.6 -2.6 4.8 5.7 5.1 

 II 1.2 -0.6 -1.8 0.1 -4.8 -1.1 12.3 4.0 

 I -0.9 -2.0 -1.1 4.5 -0.3 5.4 -5.7 0.9 

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

 Percent change from corresponding quarter of previous year

2010 III 2.5 4.1 1.5 0.4 -0.8 -2.0 6.3 1.4 

 II 3.7 3.7 0.0 0.8 -0.9 r -2.8 6.6 1.0 

 I 6.3 3.2 -2.9 3.2 0.8 -2.9 4.7 0.2 

2009 ANNUAL 3.5 -3.7 -6.9 1.8 2.2 -1.6 3.8 0.5 

2009 IV 6.3 0.3 -5.6 2.5 1.0 -3.5 5.6 0.1 

 III 4.6 -3.7 -7.9 2.4 4.0 -2.2 2.2 -0.4 

 II 2.5 -5.5 -7.8 2.3 3.3 -0.2 1.8 0.6 

 I 0.8 -5.6 -6.3 0.2 0.3 -0.6 5.6 1.8 

2008 ANNUAL 1.1 -0.9 -2.0 3.2 -0.6 2.1 1.4 1.8 

2008 IV -0.3 -4.5 -4.3 2.2 0.6 2.5 0.8 1.8 

 III 0.5 -1.5 -2.0 3.4 -1.8 2.8 1.9 2.5 

 II 1.9 0.6 -1.2 3.3 -0.9 1.4 1.8 1.6 

 I 2.4 1.7 -0.6 3.9 -0.3 1.5 1.3 1.4 

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

 Indexes 2005=100

2010 III 111.1 104.2 93.8 115.1 103.1 103.7 119.0 109.8 

 II 110.4 r 103.4 r 93.7 r 114.5 r 102.9 r 103.7 r 117.3 r 109.1 r

 I 111.0 103.0 92.8 114.7 102.9 103.4 116.0 108.4 

2009 ANNUAL 107.3 100.4 93.6 113.6 103.4 105.9 111.6 108.1 

2009 IV 110.0 101.7 92.5 115.1 103.6 104.6 113.4 108.1 

 III 108.4 100.1 92.4 114.6 103.9 105.8 112.0 108.2 

 II 106.5 99.8 93.7 113.6 103.9 106.6 110.0 108.0 

 I 104.4 99.8 95.6 111.2 102.1 106.5 110.8 108.2 

2008 ANNUAL 103.6 104.2 100.5 111.5 101.1 107.6 107.5 107.6 

2008 IV 103.5 101.4 98.0 112.2 102.5 108.4 107.3 108.0 

 III 103.6 103.9 100.3 112.0 99.9 108.1 109.6 108.7 

 II 103.9 105.6 101.6 111.0 100.6 106.8 108.1 107.3 

 I 103.6 105.7 102.1 111.0 101.8 107.1 105.0 106.3 

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

See footnotes following Table 6. November 4, 2010

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

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

seasonally adjusted

 Real

 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)

2010 III 1.9 3.0 1.1 1.8 0.4 -0.1 4.9 2.0 

 II -1.8 1.6 3.5 -0.6 r 0.1 r 1.3 r 4.4 r 2.6 

 I 3.9 5.0 1.1 -0.9 -2.4 -4.6 9.8 1.2 

2009 ANNUAL 3.5 -3.8 -7.0 1.9 2.2 -1.6 4.6 0.8 

2009 IV 6.0 6.7 0.7 1.5 -1.1 -4.2 3.5 -1.1 

 III 7.0 1.4 -5.2 3.4 -0.3 -3.3 8.1 1.1 

 II 8.4 -0.2 -7.9 9.1 7.2 0.6 -2.9 -0.8 

 I 3.4 -6.4 -9.5 -3.7 -1.6 -6.9 15.4 1.4 

2008 ANNUAL 1.0 -1.1 -2.1 3.3 -0.5 2.2 1.2 1.8 

2008 IV -0.1 -9.5 -9.5 1.1 11.3 1.2 -6.5 -1.9 

 III -1.3 -6.2 -4.9 3.7 -2.6 5.0 6.0 5.4 

 II 1.2 -0.3 -1.5 -0.2 -5.1 -1.4 13.6 4.2 

 I -1.4 -2.5 -1.2 4.7 0.0 6.2 -7.0 0.8 

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

 Percent change from corresponding quarter of previous year

2010 III 2.5 4.1 1.6 0.5 -0.8 -1.9 5.6 1.2 

 II 3.7 3.7 0.0 0.8 -0.9 r -2.7 r 6.4 r 0.9 

 I 6.3 3.2 -2.9 3.2 0.8 -2.9 4.5 0.1 

2009 ANNUAL 3.5 -3.8 -7.0 1.9 2.2 -1.6 4.6 0.8 

2009 IV 6.2 0.3 -5.6 2.5 1.0 -3.5 5.8 0.2 

 III 4.6 -3.8 -8.0 2.4 4.0 -2.2 3.2 0.0 

 II 2.5 -5.6 -8.0 2.4 3.4 -0.1 2.7 1.0 

 I 0.8 -5.7 -6.4 0.2 0.3 -0.6 6.8 2.2 

2008 ANNUAL 1.0 -1.1 -2.1 3.3 -0.5 2.2 1.2 1.8 

2008 IV -0.4 -4.7 -4.3 2.3 0.7 2.7 1.2 2.1 

 III 0.5 -1.7 -2.2 3.6 -1.6 3.1 1.6 2.5 

 II 1.9 0.5 -1.3 3.5 -0.8 1.6 1.4 1.5 

 I 2.2 1.6 -0.6 3.8 -0.3 1.6 0.7 1.2 

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

 Indexes 2005=100

2010 III 110.9 104.1 93.9 115.1 103.0 103.7 118.9 109.7 

 II 110.4 r 103.3 r 93.6 r 114.5 r 102.9 r 103.8 r 117.5 r 109.2 r

 I 110.9 102.9 92.8 114.7 102.9 103.4 116.2 108.5 

2009 ANNUAL 107.2 100.3 93.5 113.5 103.3 105.9 111.9 108.3 

2009 IV 109.9 101.7 92.5 115.0 103.5 104.7 113.5 108.2 

 III 108.3 100.0 92.4 114.5 103.8 105.8 112.6 108.5 

 II 106.5 99.7 93.6 113.6 103.9 106.7 110.4 108.2 

 I 104.3 99.7 95.6 111.1 102.1 106.5 111.2 108.4 

2008 ANNUAL 103.6 104.2 100.6 111.5 101.1 107.6 107.0 107.4 

2008 IV 103.5 101.4 98.0 112.2 102.5 108.4 107.3 108.0 

 III 103.5 104.0 100.5 111.9 99.8 108.1 109.1 108.5 

 II 103.8 105.6 101.7 110.9 100.5 106.8 107.5 107.1 

 I 103.5 105.7 102.1 111.0 101.8 107.2 104.2 106.0 

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

See footnotes following Table 6. November 4, 2010

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

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)

2010 III 0.4 4.0 3.6 0.1 -1.4 -0.3 

 II 5.4 r 9.6 r 4.0 r -1.3 r -0.6 r -6.4 r

 I 1.7 r 7.1 r 5.3 -6.5 -7.9 -8.1 r

2009 ANNUAL 2.0 -10.9 -12.6 5.2 5.6 3.2 

2009 IV 8.1 7.2 -0.8 4.4 1.6 -3.5 

 III 16.9 10.9 -5.1 3.3 -0.4 -11.6 

 II 6.2 -8.5 -13.8 6.5 4.6 0.3 

 I -1.8 -20.9 -19.4 4.0 6.3 5.9 

2008 ANNUAL -0.7 -4.7 -4.0 4.0 0.1 4.6 

2008 IV -2.6 -18.3 -16.1 7.0 17.9 9.9 

 III -1.5 -10.4 -9.0 6.3 -0.1 7.9 

 II -6.7 -7.9 -1.4 3.4 -1.7 10.7 

 I -0.7 -2.7 -2.0 2.2 -2.4 2.9 

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

 Percent change from corresponding quarter of previous year

2010 III 3.9 7.0 3.0 -0.9 -2.1 -4.6 

 II 7.9 r 8.7 r 0.8 -0.1 r -1.9 r -7.4 r

 I 8.1 3.9 -3.9 1.8 -0.6 -5.8 

2009 ANNUAL 2.0 -10.9 -12.6 5.2 5.6 3.2 

2009 IV 7.1 -3.7 -10.1 4.5 3.0 -2.4 

 III 4.4 -10.0 -13.8 5.2 6.9 0.8 

 II 0.0 -14.7 -14.7 5.9 7.0 5.9 

 I -3.2 -14.5 -11.8 5.2 5.3 8.6 

2008 ANNUAL -0.7 -4.7 -4.0 4.0 0.1 4.6 

2008 IV -2.9 -10.0 -7.3 4.7 3.1 7.8 

 III -1.4 -5.6 -4.3 5.1 -0.2 6.6 

 II -0.3 -3.0 -2.7 3.8 -0.5 4.1 

 I 2.0 0.0 -2.0 2.5 -1.7 0.4 

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

 Indexes 2005=100

2010 III 111.7 94.0 84.2 114.8 102.8 102.8 

 II 111.6 r 93.1 r 83.5 r 114.8 r 103.1 r 102.9 r

 I 110.1 r 91.0 r 82.7 115.2 103.3 104.6 r

2009 ANNUAL 105.6 87.7 83.0 115.2 104.9 109.2 

2009 IV 109.6 89.5 81.6 117.1 105.4 106.8 

 III 107.5 87.9 81.8 115.9 105.0 107.8 

 II 103.4 85.7 82.8 114.9 105.1 111.1 

 I 101.9 87.6 86.0 113.1 103.9 111.1 

2008 ANNUAL 103.5 98.4 95.0 109.5 99.3 105.8 

2008 IV 102.3 92.9 90.7 112.0 102.4 109.5 

 III 103.0 97.7 94.8 110.1 98.2 106.9 

 II 103.4 100.4 97.1 108.5 98.3 104.9 

 I 105.2 102.5 97.4 107.6 98.7 102.3 

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

See footnotes following Table 6. November 4, 2010

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

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)

2010 III -0.8 5.6 6.4 -1.0 -2.5 -0.2 

 II 11.6 r 15.1 r 3.1 r -1.3 r -0.5 r -11.5 r

 I 2.4 9.3 6.8 -7.8 -9.2 -10.0 

2009 ANNUAL 0.2 -14.9 -15.1 5.8 6.2 5.5 

2009 IV 8.7 8.0 -0.7 5.3 2.5 -3.1 

 III 25.8 17.2 -6.8 2.9 -0.8 -18.2 

 II 5.3 -14.3 -18.6 11.6 9.6 6.0 

 I -7.5 -28.8 -23.0 2.1 4.4 10.4 

2008 ANNUAL 0.1 -4.1 -4.2 3.5 -0.3 3.4 

2008 IV -9.9 -24.2 -15.9 6.6 17.4 18.3 

 III 2.8 -10.2 -12.7 7.3 0.9 4.4 

 II -8.1 -8.8 -0.8 3.8 -1.2 13.0 

 I -0.3 -0.2 0.1 -0.3 -4.8 0.0 

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

 Percent change from corresponding quarter of previous year

2010 III 5.4 9.4 3.9 -1.3 -2.5 -6.3 

 II 11.8 r 12.3 r 0.5 -0.3 r -2.1 r -10.9 r 

 I 10.2 4.3 -5.3 2.7 0.3 -6.7 r

2009 ANNUAL 0.2 -14.9 -15.1 5.8 6.2 5.5 

2009 IV 7.4 -6.3 -12.7 5.4 3.9 -1.9 

 III 2.5 -14.2 -16.3 5.7 7.5 3.1 

 II -2.5 -19.7 -17.6 6.8 7.9 9.6 

 I -5.8 -18.5 -13.5 4.9 5.1 11.4 

2008 ANNUAL 0.1 -4.1 -4.2 3.5 -0.3 3.4 

2008 IV -4.0 -11.3 -7.6 4.3 2.7 8.7 

 III 0.3 -4.8 -5.1 4.9 -0.4 4.6 

 II 0.3 -2.2 -2.5 3.5 -0.7 3.2 

 I 3.8 1.9 -1.9 1.6 -2.5 -2.1 

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

 Indexes 2005=100

2010 III 115.5 94.5 81.8 115.5 103.4 100.0 

 II 115.8 r 93.3 r 80.6 r 115.8 r 104.1 r 100.1 r

 I 112.6 r 90.1 r 80.0 116.2 104.2 103.2 r

2009 ANNUAL 106.8 86.0 80.5 116.2 105.8 108.8 

2009 IV 112.0 88.1 78.7 118.6 106.8 105.9 

 III 109.7 86.4 78.8 117.1 106.1 106.8 

 II 103.5 83.0 80.2 116.2 106.3 112.2 

 I 102.2 86.3 84.4 113.1 103.9 110.6 

2008 ANNUAL 106.5 101.0 94.8 109.9 99.6 103.2 

2008 IV 104.2 94.0 90.2 112.5 102.8 107.9 

 III 107.0 100.7 94.1 110.7 98.7 103.5 

 II 106.2 103.4 97.4 108.8 98.5 102.4 

 I 108.5 105.9 97.6 107.8 98.8 99.3 

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

See footnotes following Table 6. November 4, 2010

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

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)

2010 III 2.9 2.2 -0.7 1.6 0.1 -1.3 

 II -1.6 r 3.7 r 5.3 -1.3 r -0.6 r 0.3 

 I 1.6 r 4.8 r 3.1 -4.4 -5.8 -5.9 r

2009 ANNUAL 2.5 -6.0 -8.3 4.8 5.2 2.3 

2009 IV 7.5 6.3 -1.2 2.7 0.0 -4.5 

 III 6.7 4.3 -2.2 4.5 0.8 -2.0 

 II 4.1 -1.5 -5.4 -1.1 -2.8 -5.0 

 I 2.5 -10.7 -12.9 8.4 10.8 5.7 

2008 ANNUAL -1.6 -5.3 -3.7 4.9 1.0 6.6 

2008 IV 7.0 -10.7 -16.6 7.8 18.7 0.8 

 III -8.5 -10.6 -2.3 5.2 -1.1 15.0 

 II -4.7 -6.8 -2.3 2.3 -2.7 7.3 

 I -0.1 -5.6 -5.5 6.9 2.1 7.0 

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

 Percent change from corresponding quarter of previous year

2010 III 2.6 4.2 1.6 -0.4 -1.6 -2.9 

 II 3.5 r 4.8 r 1.2 0.3 r -1.4 r -3.1 r

 I 5.0 r 3.4 -1.5 0.4 -2.0 -4.4 r

2009 ANNUAL 2.5 -6.0 -8.3 4.8 5.2 2.3 

2009 IV 5.2 -0.6 -5.5 3.6 2.0 -1.6 

 III 5.1 -4.9 -9.4 4.8 6.5 -0.2 

 II 1.1 -8.5 -9.5 5.0 6.0 3.9 

 I -1.1 -9.7 -8.7 5.9 6.1 7.1 

2008 ANNUAL -1.6 -5.3 -3.7 4.9 1.0 6.6 

2008 IV -1.7 -8.5 -6.9 5.5 3.9 7.4 

 III -3.9 -6.6 -2.8 5.7 0.4 10.0 

 II -1.0 -4.0 -3.0 4.3 0.0 5.3 

 I 0.1 -2.1 -2.2 4.1 -0.1 4.0 

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

 Indexes 2005=100

2010 III 106.2 93.8 88.3 114.0 102.1 107.4 

 II 105.4 r 93.3 r 88.5 113.6 r 102.1 r 107.8 r

 I 105.8 r 92.4 r 87.4 114.0 102.2 107.7 r

2009 ANNUAL 102.9 89.9 87.4 114.1 103.9 111.0 

2009 IV 105.4 91.4 86.7 115.3 103.8 109.4 

 III 103.5 90.0 86.9 114.5 103.8 110.6 

 II 101.8 89.0 87.4 113.3 103.6 111.2 

 I 100.8 89.4 88.7 113.6 104.3 112.7 

2008 ANNUAL 100.3 95.7 95.4 108.9 98.7 108.5 

2008 IV 100.2 91.9 91.8 111.3 101.7 111.1 

 III 98.5 94.6 96.0 109.2 97.4 110.9 

 II 100.7 97.3 96.6 107.9 97.7 107.1 

 I 101.9 99.0 97.1 107.2 98.4 105.2 

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

See footnotes following Table 6. November 4, 2010

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

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

and prices, seasonally adjusted

 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)

2010 II -1.6 r 2.7 r 4.3 r -0.7 r 0.0 r 0.9 r -1.7 r 0.1 r 21.7 r 2.6 r

 I 8.6 10.8 2.1 -0.9 -2.3 -8.7 -8.4 -8.6 64.6 -2.1 

2009 ANNUAL 1.6 -6.0 -7.5 2.2 2.6 0.6 2.7 1.2 -2.5 0.8 

2009 IV 12.5 12.9 0.3 1.4 -1.3 -9.9 -8.1 -9.4 38.2 -5.3 

 III 5.3 -0.4 -5.4 4.2 0.5 -1.0 -7.8 -3.0 21.2 -0.9 

 II 3.4 -5.8 -8.9 6.9 5.1 3.4 -2.6 1.6 -21.4 -0.9 

 I -5.2 -15.6 -11.0 -3.5 -1.4 1.7 9.0 3.8 -4.2 3.0 

2008 ANNUAL 2.7 0.9 -1.7 3.5 -0.3 0.8 3.8 1.6 -14.2 -0.3 

2008 IV 0.4 -8.1 -8.4 3.0 13.5 2.7 11.1 5.1 -36.5 -0.4 

 III 5.9 0.3 -5.3 4.5 -1.8 -1.4 2.3 -0.3 86.7 6.5 

 II 1.7 -0.4 -2.1 1.9 -3.1 0.2 5.0 1.5 -9.2 0.4 

 I 0.2 -0.2 -0.4 2.8 -1.8 2.7 2.9 2.7 -35.0 -2.2 

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

 Percent change from corresponding quarter of previous year

2010 II 6.1 r 6.4 r 0.3 1.0 r -0.8 -4.8 r -6.5 r -5.3 r 35.3 r -1.5 

 I 7.4 4.1 -3.1 2.9 0.4 -4.2 -6.7 -5.0 21.3 -2.4 

2009 ANNUAL 1.6 -6.0 -7.5 2.2 2.6 0.6 2.7 1.2 -2.5 0.8 

2009 IV 3.8 -2.7 -6.3 2.2 0.7 -1.6 -2.6 -1.9 6.0 -1.1 

 III 0.9 -7.6 -8.4 2.6 4.3 1.7 2.1 1.8 -12.7 0.2 

 II 1.0 -7.5 -8.4 2.6 3.7 1.6 4.8 2.5 -2.8 2.0 

 I 0.6 -6.2 -6.8 1.4 1.6 0.8 6.8 2.5 0.8 2.3 

2008 ANNUAL 2.7 0.9 -1.7 3.5 -0.3 0.8 3.8 1.6 -14.2 -0.3 

2008 IV 2.0 -2.2 -4.1 3.0 1.5 1.0 5.3 2.2 -8.5 1.0 

 III 4.6 2.5 -2.0 4.0 -1.2 -0.6 1.8 0.1 0.0 0.1 

 II 2.3 1.5 -0.8 3.5 -0.7 1.2 4.1 2.0 -24.3 -1.4 

 I 1.9 1.9 0.0 3.5 -0.7 1.6 4.1 2.3 -21.7 -0.8 

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

 Indexes 2005=100

2010 II 111.5 r 104.9 r 94.0 r 113.4 r 102.0 r 101.7 r 109.9 r 104.0 r 106.2 r 104.3 r

 I 112.0 104.2 93.1 113.7 102.0 101.5 110.4 104.0 101.1 103.6 

2009 ANNUAL 106.4 99.7 93.7 112.5 102.4 105.8 116.0 108.6 83.4 105.4 

2009 IV 109.7 101.6 92.6 113.9 102.5 103.8 112.8 106.3 89.3 104.2 

 III 106.5 98.5 92.5 113.5 102.9 106.6 115.3 109.0 82.3 105.6 

 II 105.2 98.6 93.8 112.3 102.8 106.8 117.6 109.8 78.5 105.9 

 I 104.3 100.1 96.0 110.5 101.5 105.9 118.4 109.4 83.3 106.1 

2008 ANNUAL 104.7 106.1 101.3 110.1 99.8 105.1 112.9 107.3 85.5 104.5 

2008 IV 105.7 104.4 98.8 111.5 101.9 105.5 115.9 108.4 84.2 105.3 

 III 105.6 106.7 101.0 110.6 98.7 104.8 112.9 107.0 94.4 105.4 

 II 104.1 106.6 102.4 109.4 99.1 105.2 112.2 107.1 80.7 103.8 

 I 103.6 106.7 103.0 108.9 99.9 105.1 110.9 106.7 82.7 103.7 

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

See footnotes following Table 6. November 4, 2010

r=revised Source: Bureau of Labor Statistics
-12- 

SOURCES: Output data are from the Bureau of Economic Analysis and the Census Bureau of the U.S. 

Department of Commerce; the Bureau of Labor Statistics, U.S. Department of Labor; and the Federal Reserve 

Board. Compensation and hours data are from the Bureau of Labor Statistics and the Bureau of Economic 

Analysis.

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

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

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

(second revision) of a quarterly index of output per hour of all persons has differed from the initial value by 

between –1.7 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 second quarter of 2010. 

Footnotes, Tables 1-6

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

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

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

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

(CPI-U). The trend from 1978-2009 is based on the Consumer Price Index research series (CPI-U-RS).

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

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

persons, and the current surplus of government enterprises. 

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

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

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

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

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

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

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

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

adjustments.