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Current data: (202) 691-5200 blsdata_staff@bls.gov UNTIL 8:30 A.M. EDT, 

Media contact: (202) 691-5902 THURSDAY, MAY 5, 2005. 

PRODUCTIVITY AND COSTS 

First Quarter 2005, preliminary 

 The Bureau of Labor Statistics of the U.S. Department of Labor today reported 

preliminary productivity data—as measured by output per hour of all persons—for the first 

quarter of 2005. The seasonally adjusted annual rates of productivity change in the first quarter 

were: 

2.1 percent in the business sector and 

 2.6 percent in the nonfarm business sector. 

Productivity in the business sector grew more slowly than in the fourth quarter of 2004, 

when it increased 3.7 percent. In the nonfarm business sector, however, productivity increased 

more in the first quarter than it had in the previous quarter. Nonfarm business labor productivity 

increased 2.1 percent in the fourth quarter of 2004. 

 In manufacturing, productivity changes in the first quarter were: 

3.9 percent in manufacturing, 

6.3 percent in durable goods manufacturing, and 

1.3 percent in nondurable goods manufacturing. 

 Productivity growth in manufacturing in the first quarter of 2005 reflected a 3.3-percent 

increase in output and a drop of 0.7 percent in hours worked in the sector. Output and hours in 

manufacturing, which includes about 13 percent of U.S. business sector employment, tend to 

vary more from quarter to quarter than data for the aggregate business and nonfarm business 

sectors. First-quarter measures are summarized in table A and appear in detail in tables 1 

through 5. 

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

from those used in preparing the business and nonfarm business series, and these measures are 

not directly comparable. Output measures for business and nonfarm business are based on 

measures of gross domestic product prepared by the Bureau of Economic Analysis of the U.S. 

Department of Commerce. Quarterly output measures for manufacturing reflect indexes of 

industrial production independently prepared by the Board of Governors of the Federal Reserve 

System. See Technical Notes for further information on data sources (page 8). 
2 

Table A. Productivity and costs: Preliminary first-quarter 2005 measures 

(Seasonally adjusted annual rates) 

Sector 

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation 

Unit 

labor 

costs 

 Percent change from preceding quarter 

Business 2.1 3.6 1.5 4.3 1.9 2.2 

Nonfarm business 2.6 3.6 1.0 4.8 2.4 2.2 

Manufacturing 3.9 3.3 -0.7 4.9 2.5 0.9 

 Durable 6.3 5.8 -0.4 5.3 2.9 -0.9 

 Nondurable 1.3 0.3 -1.0 3.9 1.5 2.6 

 Percent change from same quarter a year ago 

Business 2.7 4.0 1.4 5.0 2.0 2.3 

Nonfarm business 2.5 3.9 1.4 5.0 2.0 2.5 

Manufacturing 5.5 4.5 -1.0 7.0 3.9 1.4 

 Durable 6.5 6.0 -0.4 7.5 4.4 1.0 

 Nondurable 4.6 2.6 -1.9 5.8 2.7 1.1 

Business 

 Productivity in the business sector rose 2.1 percent in the first quarter 2005, as output 

grew 3.6 percent and hours of all persons engaged in the sector increased 1.5 percent (seasonally 

adjusted annual rates). Revised data for the fourth quarter of 2004 show that output per hour 

increased 3.7 percent, reflecting a 4.3-percent rise in output and a 0.6-percent increase in hours 

at work. (See table 1.) 

 Hourly compensation increased 4.3 percent during the first quarter of 2005. This 

measure includes wages and salaries, supplements, employer contributions to employee benefit 

plans, and taxes. Hourly compensation had risen 4.9 percent in the previous quarter. However, 

real hourly compensation, which takes into account changes in consumer prices, increased faster 

in the first quarter of 2005, 1.9 percent, than in the fourth quarter of 2004, when it rose 1.3 

percent. 

Unit labor costs rose 2.2 percent in the first quarter of 2005, more rapidly than the 1.1-

percent increase in the fourth quarter. Growth in unit labor costs is roughly equivalent to the 

change in hourly compensation offset by the change in output per hour. 

 The implicit price deflator for the business sector, which reflects changes in both unit 

labor costs and unit nonlabor payments, rose 2.8 percent in the first quarter. In the previous 

quarter, the implicit price deflator for business sector output increased 2.4 percent. 
3 

Nonfarm business 

 Productivity rose 2.6 percent in the nonfarm business sector in first-quarter 2005 as 

output grew 3.6 percent and hours of all persons increased by 1.0 percent (seasonally adjusted 

annual rates). In the fourth quarter of 2004, productivity had risen 2.1 percent, reflecting 

increases in output and hours of 3.7 and 1.6 percent, respectively. (See table 2.) 

 Hourly compensation increased 4.8 percent in the first quarter of 2005, more rapidly than 

in the fourth quarter, when it grew 3.8 percent. When the rise in consumer prices was taken into 

account, real hourly compensation rose 2.4 percent in the first quarter, up from 0.2 percent in the 

fourth quarter of 2004. 

Unit labor costs grew 2.2 percent in the first quarter of 2005, more rapidly than the 1.7-

percent rise of the previous quarter. The implicit price deflator for nonfarm business output rose 

2.9 percent in the first quarter and 2.5 percent one quarter earlier. 

Manufacturing 

 Productivity increased 3.9 percent in manufacturing in the first quarter of 2005, as output 

increased 3.3 percent and hours of all persons fell 0.7 percent (seasonally adjusted annual rates). 

This is the fourth consecutive quarter in which output has risen and hours have decreased. (See 

table 3.) Productivity rose 6.3 percent in durable goods manufacturing, reflecting 5.8-percent 

growth in output and a 0.4 percent decrease in all person hours. In nondurable goods 

manufacturing, productivity grew more slowly, 1.3 percent, in the first quarter of 2005 as output 

edged up 0.3 percent and hours of all persons fell 1.0 percent. The first quarter increase in labor 

productivity was the smallest in nondurable goods manufacturing since a 4.5-percent drop in the 

fourth quarter of 2002. Hours in that sector have declined in every quarter since the second 

quarter of 1999, when they increased 1.2 percent. 

 The hourly compensation of all manufacturing workers rose 4.9 percent during the first 

quarter, and real hourly compensation increased 2.5 percent. The 4.9-percent hourly 

compensation rise reflects a change of 5.3 percent in durable goods and 3.9 percent in 

nondurable goods. 

Because the hourly compensation of manufacturing workers rose more rapidly than 

output per hour, unit labor costs increased in the first quarter, by 0.9 percent. This is similar to 

the 0.8-percent increase recorded in the fourth quarter of 2004. In durable goods manufacturing, 

however, unit labor costs fell in the first quarter of 2005, dropping 0.9 percent. All of the 

increase in manufacturing unit labor costs came from the nondurable goods subsector, where unit 

labor costs grew 2.6 percent. 
4 

Fourth-quarter and annual measures for nonfinancial corporations 

 Fourth-quarter and annual 2004 measures of productivity and costs also were announced 

today for the nonfinancial corporate sector (tables B, C, and 6). Output per all-employee hour 

grew 5.3 percent from the third to the fourth quarter of 2004, as output grew 6.7 percent and 

employee hours increased 1.3 percent. The nonfinancial corporate sector includes all 

corporations doing business in the United States, except those classified as depository 

institutions, nondepository institutions, security and commodity brokers, insurance carriers, 

regulated investment offices, small business investment offices, and real estate investment trusts. 

Table B. Nonfinancial corporations: Fourth-quarter 2004 productivity and cost measures 

(Seasonally adjusted annual rates) 

Period 

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation 

Unit 

labor 

costs 

Unit 

profits 

Implicit 

price 

deflator 

Percent change from preceding quarter 

2004 IV 5.3 6.7 1.3 4.4 0.8 -0.8 38.5 2.2 

Percent change from same quarter a year ago 

2004 IV 3.6 5.3 1.7 4.5 1.1 0.9 17.9 1.9 

 Hourly compensation in this sector increased 4.4 percent in the fourth quarter, and real 

hourly compensation rose 0.8 percent. Unit labor costs fell 0.8 percent in the fourth quarter of 

2004—the first decline in these costs since the fourth quarter of 2003. In the fourth quarter of 

2004, unit profits grew 38.5 percent after falling slightly, 0.8 percent, in the previous quarter. 

The implicit price deflator for nonfinancial corporate output grew 2.2 percent during the fourth 

quarter of 2004, up from the 0.2-percent increase in the third quarter. 
5 

 In calendar year 2004, productivity in the nonfinancial corporate sector grew 3.9 percent, 

following an increase of 4.2 percent in the previous year. (See table C.) When combined with 

the 3.9-percent increase in 2002, this marks the fastest three-year increase in productivity—an 

average of 4.0 percent a year—in the history of the series, which begins in 1958. Nonfinancial 

corporate output grew 5.4 percent in 2004, and employee hours increased 1.4 percent. This was 

the first increase in employee hours since 2000, when they grew 1.5 percent. 

Table C. Nonfinancial corporations: Annual changes in productivity and related measures, 1995-

2004 

Measure 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Productivity........................... 1.1 3.7 2.6 3.2 3.4 3.6 1.7 3.9 4.2 3.9

Output ................................... 4.7 5.5 6.5 5.7 6.0 5.2 -0.9 1.0 2.8 5.4

Hours..................................... 3.6 1.8 3.8 2.4 2.6 1.5 -2.5 -2.8 -1.3 1.4

Hourly compensation ............ 1.7 3.0 3.0 5.7 4.6 6.8 4.1 3.0 4.0 4.4

Real hourly compensation..... -0.7 0.3 0.8 4.2 2.4 3.4 1.2 1.4 1.7 1.7

Unit labor costs ..................... 0.6 -0.6 0.4 2.4 1.2 3.1 2.4 -0.8 -0.1 0.5

Unit nonlabor costs ............... 0.4 -1.3 -0.2 -0.2 0.9 3.8 8.1 0.3 -0.1 -1.6

Total unit costs...................... 0.6 -0.8 0.2 1.7 1.1 3.3 3.9 -0.5 -0.1 -0.1

Unit profits............................ 3.9 9.6 2.9 -11.2 -5.8 -15.8 -24.3 16.0 20.1 20.0

Implicit price deflator ........... 1.0 0.4 0.6 0.0 0.3 1.2 1.3 0.6 1.4 1.8

Hourly compensation grew 4.4 percent in 2004, and real hourly compensation increased 

1.7 percent. Total unit costs declined 0.1 percent, reflecting a 0.5-percent rise in unit labor costs 

and a 1.6-percent drop in unit nonlabor costs. Unit profits rose 20.0 percent in 2004. The 

implicit price deflator, which reflects both the unit costs and unit profits measures, rose 1.8 

percent in 2004. 
6 

Revised measures 

 Current and previous measures for the fourth quarter and annual average of 2004 in the 

business, nonfarm business, and manufacturing sectors are compared in table D. Some of the 

quarterly movements differ from those reported on March 3. In the business and nonfarm 

business sectors, productivity, output and hours are little changed from what was reported 

previously. However, hourly compensation and unit labor costs increased faster in the fourth 

quarter than reported on March 3. Productivity in the manufacturing sector grew more rapidly in 

the fourth quarter 2004, 6.3 percent, than previously reported due to both an upward revision to 

output and a downward revision to hours. Hourly compensation was revised up more than 

productivity. As a result, unit labor costs grew faster, 0.8 percent, than reported on March 3. 

Table D. Previous and revised productivity and related measures 

Quarterly percent change at seasonally adjusted annual rate 

Sector 

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation 

Unit 

labor 

costs 

Fourth quarter 2004 

Business: 

 Previous ....................... 3.7 4.2 0.5 4.5 0.9 0.8 

 Revised......................... 3.7 4.3 0.6 4.9 1.3 1.1 

Nonfarm business: 

 Previous ....................... 2.1 3.7 1.6 3.4 -0.2 1.3 

 Revised......................... 2.1 3.7 1.6 3.8 0.2 1.7 

Manufacturing: 

 Previous ....................... 5.8 4.6 -1.1 6.2 2.5 0.4 

 Revised......................... 6.3 4.9 -1.3 7.1 3.4 0.8 

Annual average 2004 

Business: 

 Previous ....................... 4.0 5.1 1.1 4.5 1.8 0.5 

 Revised......................... 4.0 5.1 1.1 4.5 1.8 0.6 

Nonfarm business: 

 Previous ....................... 4.0 5.3 1.2 4.4 1.7 0.4 

 Revised......................... 4.1 5.3 1.2 4.5 1.7 0.4 

Manufacturing: 

 Previous ....................... 5.2 4.8 -0.4 4.5 1.8 -0.7 

 Revised......................... 5.3 4.8 -0.4 4.5 1.8 -0.7 

All of the 2004 annual average annual productivity and cost measures reported for the 

business and nonfarm business sectors and for manufacturing are similar to those reported in 

March. 
7 

The Consumer Price Index Research Series has been updated and new seasonal factors 

applied to it. Real hourly compensation measures are revised beginning with 2000. See 

appendix tables 1-6. 

Next release date 

 The next release of Productivity and Costs is scheduled for 8:30 AM EDT, Thursday, 

June 2, 2005. First-quarter measures for nonfinancial corporations and revised first and fourth 

quarter measures for business, nonfarm business, and manufacturing will be released at that time. 

Current and upcoming changes to productivity and cost data 

The Bureau of Labor Statistics uses Current Population Survey (CPS) data to measure the 

hours of nonfarm proprietors and unpaid family workers, all persons working in the farm sector, 

and all employees of government enterprises using the hours worked by people whose main job 

falls into these categories. Effective with the next release of productivity and costs, hours for 

primary and secondary jobs held by persons working more than one job will be processed 

separately and assigned to the appropriate class of worker for each job rather than assigning all 

hours to the primary job. This multiple-jobholder adjustment will result in an improved measure 

of hours at work by sector and industry and the employment series will more nearly approximate 

a count of jobs rather than persons. At the aggregate level, trends in the new hours series are 

expected to be similar to those in the currently-published productivity measures.
8 

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 years prior to 2001. 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. 

Output: Business sector output is an annualweighted index constructed after excluding from 

gross domestic product (GDP) the following 

outputs: general government, nonprofit institutions, and private households (including owneroccupied housing). Corresponding exclusions also 

are made in labor inputs. Business output 

accounted for about 78 percent of the value of 

GDP in 2000. Nonfarm business, which also 

excludes farming, accounted for about 77 percent 

of GDP in 2000. 

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 BEA. 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 an annualweighted 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 54 percent of the value of 

GDP in 2000. 

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 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. 

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. 
9 

 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 

 2003 I 126.3 145.5 115.2 147.4 r115.2 116.8 117.7 117.1 

 II 128.6 147.5 114.7 149.6 116.8 116.4 119.0 117.3 

 III 131.1 150.8 115.0 151.5 r117.7 115.6 120.8 117.5 

 IV 131.8 152.3 115.6 152.9 118.5 116.0 120.7 117.8 

 ANNUAL 129.5 149.0 115.1 150.4 117.0 116.2 119.6 117.4 

 2004 I 133.1 154.3 115.9 154.0 r118.2 115.7 122.9 118.4 

 II 134.1 155.8 116.2 156.0 118.5 116.4 124.4 119.4 

 III 134.7 157.5 116.9 158.2 r119.6 117.4 123.5 119.7 

 IV 136.0 r159.2 117.0 r160.1 120.0 r117.8 r124.8 r120.4 

 ANNUAL 134.6 156.7 116.4 157.2 119.2 116.8 123.9 119.5 

 2005 I 136.7 160.6 117.5 161.8 120.6 118.4 126.0 121.3 

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

 Percent change from previous quarter at annual rate(5) 

 2003 I 4.1 2.2 -1.8 5.8 r1.5 1.6 3.1 2.1 

 II 7.6 5.6 -1.9 6.1 r5.7 -1.4 4.5 0.8 

 III 8.1 9.3 1.1 5.2 r3.0 -2.7 6.4 0.7 

 IV 2.1 4.2 2.0 3.7 r2.8 1.6 -0.3 0.8 

 ANNUAL 4.5 3.8 -0.6 4.1 1.8 -0.4 4.1 1.3 

 2004 I 4.0 5.3 1.2 2.9 r-0.9 -1.1 7.3 2.1 

 II 2.9 3.9 0.9 5.3 0.8 2.3 5.0 3.3 

 III 2.0 4.5 2.5 5.8 r4.0 3.7 -2.9 1.1 

 IV 3.7 r4.3 r0.6 r4.9 r1.3 r1.1 r4.4 r2.4 

 ANNUAL 4.0 5.1 1.1 4.5 1.8 r0.6 3.6 1.7 

 2005 I 2.1 3.6 1.5 4.3 1.9 2.2 3.9 2.8 

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

 Percent change from corresponding quarter of previous year 

 2003 I 3.0 2.3 -0.6 3.0 0.1 0.0 3.8 1.4 

 II 4.4 3.2 -1.1 3.6 1.4 -0.7 4.7 1.3 

 III 5.2 4.5 -0.7 4.5 2.3 -0.6 4.4 1.3 

 IV 5.5 5.3 -0.2 5.2 3.2 -0.3 3.4 1.1 

 ANNUAL 4.5 3.8 -0.6 4.1 1.8 -0.4 4.1 1.3 

 2004 I 5.4 6.1 0.6 4.5 2.6 -0.9 4.4 1.1 

 II 4.3 5.6 1.3 4.3 1.4 0.0 4.6 1.7 

 III 2.8 4.4 1.6 4.4 r1.7 1.6 2.2 1.8 

 IV 3.2 4.5 1.3 r4.7 r1.3 r1.5 r3.4 r2.2 

 ANNUAL 4.0 5.1 1.1 4.5 1.8 r0.6 3.6 1.7 

 2005 I 2.7 4.0 1.4 5.0 2.0 2.3 2.6 2.4 

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

 See footnotes following Table 6. May 5, 2005 

 r=revised Source: Bureau of Labor Statistics 
10 

 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 

 2003 I 125.8 145.9 116.0 146.7 r114.6 116.6 119.6 117.7 

 II 127.9 147.8 115.6 148.7 116.1 116.3 120.4 117.8 

 III 130.5 151.1 115.7 150.8 r117.1 115.5 122.3 118.0 

 IV 131.5 152.8 116.2 152.3 118.0 115.9 121.9 118.1 

 ANNUAL 128.9 149.4 115.9 149.6 116.4 116.1 121.1 117.9 

 2004 I 132.7 155.0 116.8 153.1 r117.5 115.4 124.3 118.7 

 II 134.0 156.5 116.8 155.3 r117.9 115.9 125.7 119.6 

 III 134.4 158.2 117.7 157.4 r119.0 117.1 125.2 120.1 

 IV 135.1 159.6 118.1 r158.9 r119.1 r117.6 r126.4 r120.8 

 ANNUAL 134.1 157.3 117.3 156.3 118.5 116.5 125.4 119.8 

 2005 I 136.0 161.0 118.4 160.8 119.8 118.2 127.6 121.7 

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

 Percent change from previous quarter at annual rate(5) 

 2003 I 4.0 2.4 -1.5 5.6 r1.3 1.6 2.3 1.9 

 II 6.7 5.3 -1.4 5.7 r5.3 -1.0 2.9 0.5 

 III 8.7 9.3 0.6 5.7 r3.5 -2.7 6.3 0.6 

 IV 2.8 4.6 1.7 4.1 r3.1 1.2 -1.2 0.3 

 ANNUAL 4.4 3.8 -0.5 4.0 1.7 -0.4 3.7 1.1 

 2004 I 3.8 5.7 1.9 2.1 r-1.7 -1.6 8.0 2.0 

 II 3.9 4.2 0.2 5.9 r1.5 1.9 4.6 2.9 

 III 1.3 4.2 2.8 5.4 3.7 4.0 -1.6 1.8 

 IV 2.1 3.7 1.6 r3.8 r0.2 r1.7 r3.8 r2.5 

 ANNUAL r4.1 5.3 1.2 r4.5 1.7 0.4 r3.6 1.6 

 2005 I 2.6 3.6 1.0 4.8 2.4 2.2 4.0 2.9 

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

 Percent change from corresponding quarter of previous year 

 2003 I 2.8 2.3 -0.5 2.9 0.0 0.1 3.9 1.5 

 II 4.1 3.2 -0.9 3.4 1.2 -0.7 4.4 1.2 

 III 5.2 4.6 -0.6 4.5 2.3 -0.6 3.9 1.1 

 IV 5.5 5.4 -0.1 5.3 3.3 -0.2 2.6 0.8 

 ANNUAL 4.4 3.8 -0.5 4.0 1.7 -0.4 3.7 1.1 

 2004 I 5.5 6.2 0.7 4.4 2.5 -1.0 4.0 0.8 

 II 4.8 6.0 1.1 4.5 1.6 -0.3 4.4 1.5 

 III 3.0 4.7 1.7 4.4 r1.6 1.4 2.4 1.8 

 IV 2.8 r4.5 1.6 r4.3 0.9 r1.5 3.6 r2.3 

 ANNUAL r4.1 5.3 1.2 r4.5 1.7 0.4 r3.6 1.6 

 2005 I 2.5 3.9 1.4 5.0 2.0 2.5 2.6 2.5 

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

 See footnotes following Table 6. May 5, 2005 

 r=revised Source: Bureau of Labor Statistics 
11 

 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 

 2003 I 151.6 131.8 86.9 155.5 r121.5 102.6 

 II 152.9 130.7 85.5 158.4 r123.6 103.6 

 III 156.9 132.1 84.2 161.6 r125.5 103.0 

 IV 158.1 134.2 84.9 163.6 126.8 103.5 

 ANNUAL 154.8 132.2 85.4 159.7 124.3 103.2 

 2004 I 159.3 136.0 85.4 162.4 r124.6 101.9 

 II 162.2 138.0 85.1 165.1 r125.3 101.8 

 III 164.0 139.4 85.0 168.7 127.6 102.9 

 IV r166.5 141.0 r84.7 r171.7 r128.6 r103.1 

 ANNUAL 163.0 138.6 r85.0 r167.0 126.5 102.4 

 2005 I 168.1 142.2 84.6 173.7 129.4 103.3 

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

 Percent change from previous quarter at annual rate(5) 

 2003 I 5.7 -0.9 -6.3 17.4 r12.7 11.0 

 II 3.3 -3.4 -6.5 7.6 r7.2 4.2 

 III 11.0 4.5 -5.9 8.3 r6.0 -2.4 

 IV 3.2 6.6 3.3 5.2 r4.3 1.9 

 ANNUAL 5.2 0.0 -4.9 8.7 6.2 3.3 

 2004 I 3.0 5.4 2.4 -3.1 r-6.7 -5.9 

 II 7.6 5.9 -1.6 6.9 2.4 -0.6 

 III 4.4 4.0 -0.3 9.1 r7.3 4.6 

 IV r6.3 r4.9 r-1.3 r7.1 r3.4 r0.8 

 ANNUAL r5.3 4.8 -0.4 4.5 1.8 -0.7 

 2005 I 3.9 3.3 -0.7 4.9 2.5 0.9 

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

 Percent change from corresponding quarter of previous year 

 2003 I 5.0 0.6 -4.2 8.1 5.1 3.0 

 II 4.4 -1.3 -5.4 7.9 r5.6 3.4 

 III 5.5 -0.8 -6.0 9.0 6.6 3.3 

 IV 5.8 1.6 -3.9 9.5 7.5 3.6 

 ANNUAL 5.2 0.0 -4.9 8.7 6.2 3.3 

 2004 I 5.1 3.2 -1.8 4.4 2.5 -0.6 

 II 6.1 5.6 -0.5 4.3 1.4 -1.8 

 III 4.5 5.5 0.9 4.4 r1.7 -0.1 

 IV r5.3 r5.1 -0.2 r4.9 r1.5 r-0.4 

 ANNUAL r5.3 4.8 -0.4 4.5 1.8 -0.7 

 2005 I 5.5 4.5 -1.0 7.0 3.9 1.4 

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

 See footnotes following Table 6. May 5, 2005 

 r=revised Source: Bureau of Labor Statistics 
12 

 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 

 2003 I 172.7 155.7 90.1 153.5 r120.0 88.9 

 II 174.3 154.3 88.6 156.5 122.2 89.8 

 III 180.9 157.6 87.1 159.8 r124.1 88.3 

 IV 182.8 161.5 88.3 161.7 125.3 88.5 

 ANNUAL 177.6 157.3 88.5 157.9 122.9 88.9 

 2004 I 184.4 164.6 89.3 159.1 r122.1 86.3 

 II 187.8 167.1 88.9 162.1 123.1 86.3 

 III 190.0 169.5 89.2 166.0 125.5 87.4 

 IV r193.4 r172.1 89.0 r168.9 r126.6 r87.4 

 ANNUAL 188.9 168.3 89.1 164.0 124.3 86.8 

 2005 I 196.3 174.6 88.9 171.1 127.5 87.2 

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

 Percent change from previous quarter at annual rate(5) 

 2003 I 5.1 -1.6 -6.4 21.8 r16.9 15.9 

 II 3.7 -3.4 -6.9 8.1 r7.7 4.2 

 III 16.0 8.7 -6.3 8.6 r6.3 -6.4 

 IV 4.2 10.1 5.7 4.9 r4.0 0.6 

 ANNUAL 6.9 1.3 -5.3 9.7 7.2 2.6 

 2004 I 3.6 8.1 4.3 -6.2 r-9.7 -9.5 

 II 7.7 6.0 -1.5 7.7 r3.2 0.0 

 III 4.6 6.0 1.3 9.9 8.1 5.1 

 IV r7.4 r6.3 -1.0 r7.3 r3.6 r-0.1 

 ANNUAL r6.4 7.0 r0.6 3.9 1.2 -2.3 

 2005 I 6.3 5.8 -0.4 5.3 2.9 -0.9 

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

 Percent change from corresponding quarter of previous year 

 2003 I 6.7 1.7 -4.7 9.0 r5.9 2.2 

 II 5.9 -0.6 -6.1 8.8 6.5 2.8 

 III 7.9 0.7 -6.7 10.2 r7.8 2.2 

 IV 7.2 3.3 -3.6 10.7 8.6 3.3 

 ANNUAL 6.9 1.3 -5.3 9.7 7.2 2.6 

 2004 I 6.8 5.8 -1.0 3.7 1.8 -2.9 

 II 7.8 8.3 0.4 3.6 0.7 -3.9 

 III 5.0 7.6 2.4 3.9 r1.1 -1.1 

 IV r5.8 r6.6 0.8 r4.5 r1.1 r-1.3 

 ANNUAL r6.4 7.0 r0.6 3.9 1.2 -2.3 

 2005 I 6.5 6.0 -0.4 7.5 4.4 1.0 

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

 See footnotes following Table 6. May 5, 2005 

 r=revised Source: Bureau of Labor Statistics 
13 

 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 

 2003 I 130.2 106.9 82.1 157.7 r123.2 121.1 

 II 131.1 106.0 80.9 160.3 125.2 122.3 

 III 132.6 105.9 79.8 163.4 r126.9 123.2 

 IV 133.6 106.5 79.7 165.5 128.2 123.9 

 ANNUAL 131.8 106.3 80.6 161.7 125.8 122.6 

 2004 I 134.5 107.1 79.6 166.6 r127.8 123.8 

 II 137.0 108.6 79.3 168.8 128.2 123.2 

 III 138.6 109.0 78.7 171.8 129.9 123.9 

 IV r140.3 r109.8 r78.3 r174.5 r130.8 124.4 

 ANNUAL r137.6 108.6 r78.9 r170.4 r129.2 123.8 

 2005 I 140.7 109.9 78.1 176.2 131.3 125.2 

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

 Percent change from previous quarter at annual rate(5) 

 2003 I 6.5 0.1 -6.0 9.7 r5.2 3.0 

 II 2.6 -3.5 -5.9 6.9 r6.5 4.2 

 III 4.9 -0.6 -5.2 8.0 r5.7 2.9 

 IV 2.8 2.4 -0.4 5.2 r4.3 2.3 

 ANNUAL 2.8 -1.5 -4.2 6.8 4.5 3.9 

 2004 I 2.9 2.1 -0.8 2.6 r-1.3 -0.3 

 II 7.5 5.7 -1.7 5.5 r1.1 -1.9 

 III 4.8 1.7 -3.0 7.2 5.5 2.3 

 IV r4.9 r2.9 r-1.9 r6.6 r3.0 r1.7 

 ANNUAL r4.4 r2.2 -2.1 r5.4 2.6 1.0 

 2005 I 1.3 0.3 -1.0 3.9 1.5 2.6 

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

 Percent change from corresponding quarter of previous year 

 2003 I 2.6 -0.9 -3.4 6.6 3.6 3.9 

 II 2.2 -2.2 -4.3 6.5 4.2 4.2 

 III 2.3 -2.6 -4.8 6.9 4.6 4.5 

 IV 4.2 -0.4 -4.4 7.4 5.4 3.1 

 ANNUAL 2.8 -1.5 -4.2 6.8 4.5 3.9 

 2004 I 3.3 0.1 -3.1 5.7 3.7 2.3 

 II 4.5 2.4 -2.0 5.3 2.4 0.7 

 III 4.5 3.0 -1.5 5.1 r2.3 0.6 

 IV r5.0 r3.1 r-1.8 r5.5 r2.0 0.4 

 ANNUAL r4.4 r2.2 -2.1 r5.4 2.6 1.0 

 2005 I 4.6 2.6 -1.9 5.8 2.7 1.1 

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

 See footnotes following Table 6. May 5, 2005 

 r=revised Source: Bureau of Labor Statistics 
14 

 Table 6. Nonfinancial corporations: 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 

 2002 I 126.7 150.2 118.5 139.9 112.5 110.4 113.6 111.3 88.8 109.3 

 II 128.2 151.7 118.4 141.3 r112.8 110.3 112.7 111.0 94.5 109.5 

 III 129.0 152.2 118.0 142.1 112.7 110.1 112.8 110.9 95.8 109.5 

 IV 129.6 152.4 117.6 142.8 r112.8 110.2 112.8 110.9 102.3 110.1 

 ANNUAL 128.4 151.6 118.1 141.5 112.7 110.3 113.0 111.0 95.4 109.6 

 2003 I 130.3 152.2 116.8 144.2 112.7 110.7 114.0 111.6 100.0 110.5 

 II 132.7 154.4 116.4 146.4 114.3 110.3 112.6 110.9 112.2 111.0 

 III 135.2 157.3 116.3 148.4 r115.3 109.8 112.6 110.5 120.3 111.4 

 IV 136.6 159.6 116.8 149.8 116.1 109.7 112.2 110.4 125.1 111.7 

 ANNUAL 133.7 155.9 116.6 147.2 114.6 110.1 112.9 110.8 114.6 111.2 

 2004 I 136.9 160.9 117.6 150.8 115.7 110.2 111.1 110.4 129.9 112.2 

 II 138.0 162.6 117.9 152.8 116.0 110.7 111.4 110.9 136.3 113.2 

 III 139.6 165.3 118.4 154.9 117.1 110.9 111.3 111.0 136.0 113.2 

 IV 141.4 168.0 118.8 156.5 117.3 110.7 110.2 110.6 147.5 113.9 

 ANNUAL 139.0 164.2 118.2 153.7 116.5 110.6 111.0 110.7 137.5 113.1 

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

 Percent change from previous quarter at annual rate(5) 

 2002 I 7.5 5.4 -2.0 1.7 r0.2 -5.4 -7.0 -5.9 91.5 -1.3 

 II 4.6 4.2 -0.3 4.2 r0.9 -0.3 -3.1 -1.1 28.2 0.8 

 III 2.6 1.1 -1.4 2.0 r-0.1 -0.6 0.3 -0.3 5.8 0.1 

 IV 1.9 0.7 -1.2 2.1 r0.1 0.3 0.0 0.2 29.9 2.3 

 ANNUAL 3.9 1.0 -2.8 3.0 1.4 -0.8 0.3 -0.5 16.0 0.6 

 2003 I 2.2 -0.7 -2.8 3.8 r-0.3 1.6 4.4 2.4 -8.8 1.4 

 II 7.7 6.0 -1.5 6.2 r5.8 -1.4 -4.9 -2.4 58.5 1.8 

 III 7.9 7.6 -0.3 5.8 r3.6 -1.9 0.1 -1.4 32.3 1.4 

 IV 3.9 6.0 2.0 3.8 r2.9 -0.1 -1.5 -0.5 16.8 1.1 

 ANNUAL 4.2 2.8 -1.3 4.0 1.7 -0.1 -0.1 -0.1 20.1 1.4 

 2004 I 0.9 3.4 2.5 2.5 r-1.4 1.6 -4.0 0.1 16.3 1.6 

 II 3.3 4.3 1.0 5.5 1.0 2.1 1.3 1.9 21.0 3.8 

 III 4.9 6.9 1.9 5.6 r3.8 0.6 -0.5 0.3 -0.8 0.2 

 IV 5.3 6.7 1.3 4.4 0.8 -0.8 -3.7 -1.6 38.5 2.2 

 ANNUAL 3.9 5.4 1.4 4.4 1.7 0.5 -1.6 -0.1 20.0 1.8 

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

 Percent change from corresponding quarter of previous year 

 2002 I 3.4 -1.1 -4.4 3.2 2.0 -0.1 4.0 1.0 1.6 1.0 

 II 3.8 0.4 -3.2 3.3 r2.1 -0.4 1.0 0.0 8.8 0.6 

 III 4.3 1.9 -2.3 3.0 r1.5 -1.2 -1.1 -1.2 21.4 0.3 

 IV 4.1 2.8 -1.2 2.5 0.3 -1.5 -2.5 -1.8 35.5 0.5 

 ANNUAL 3.9 1.0 -2.8 3.0 1.4 -0.8 0.3 -0.5 16.0 0.6 

 2003 I 2.8 1.3 -1.4 3.1 r0.1 0.3 0.4 0.3 12.6 1.2 

 II 3.6 1.8 -1.7 3.5 r1.3 0.0 -0.1 0.0 18.7 1.4 

 III 4.9 3.3 -1.4 4.5 r2.2 -0.4 -0.2 -0.3 25.5 1.7 

 IV 5.4 4.7 -0.7 4.9 r2.9 -0.5 -0.5 -0.5 22.3 1.4 

 ANNUAL 4.2 2.8 -1.3 4.0 1.7 -0.1 -0.1 -0.1 20.1 1.4 

 2004 I 5.0 5.7 0.7 4.6 2.7 -0.5 -2.6 -1.0 29.9 1.5 

 II 4.0 5.3 1.3 4.4 1.5 0.4 -1.0 0.0 21.5 2.0 

 III 3.2 5.1 1.8 4.3 r1.6 1.1 -1.2 0.4 13.0 1.7 

 IV 3.6 5.3 1.7 4.5 1.1 0.9 -1.8 0.2 17.9 1.9 

 ANNUAL 3.9 5.4 1.4 4.4 1.7 0.5 -1.6 -0.1 20.0 1.8 

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

 See footnotes following Table 6. May 5, 2005 

 r=revised Source: Bureau of Labor Statistics 
15 

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 –1.3 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 fourth quarter of 2004. 

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 selfemployed, 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 1978-2004 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 from the original data rather 

than index numbers. Annual changes: Percent change between annual average levels. 

(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.
16 

 Appendix table 1. Business sector: Revised 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 

 2000 I 114.0 138.6 121.6 132.4 111.5 116.2 105.2 112.1 

 II 116.2 141.1 121.4 133.0 111.1 114.5 109.4 112.6 

 III 115.9 140.8 121.5 135.6 112.2 117.0 106.2 112.9 

 IV 117.1 141.5 120.9 136.5 112.1 116.6 107.9 113.3 

 ANNUAL 115.9 140.5 121.2 134.5 111.8 116.1 107.2 112.7 

 2001 I 116.9 141.1 120.7 138.8 r112.9 118.7 106.4 114.1 

 II 118.5 141.4 119.4 139.7 112.9 117.9 109.8 114.9 

 III 118.8 140.3 118.1 140.4 113.2 118.2 110.2 115.2 

 IV 120.9 141.0 116.6 141.5 114.2 117.0 113.1 115.6 

 ANNUAL 118.8 141.0 118.7 140.1 113.3 118.0 109.9 114.9 

 2002 I 122.6 142.2 115.9 143.2 r115.1 116.7 113.4 115.5 

 II 123.2 142.9 116.0 144.5 115.2 117.2 113.6 115.9 

 III 124.6 144.3 115.8 145.0 115.0 116.3 115.7 116.1 

 IV 125.0 144.7 115.8 145.4 114.8 116.3 116.8 116.5 

 ANNUAL 123.9 143.5 115.9 144.5 115.0 116.6 114.9 116.0 

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

 Percent change from previous quarter at annual rate(5) 

 2000 I -1.3 0.3 1.6 14.6 r10.3 16.0 -15.7 3.4 

 II 8.1 7.5 -0.5 1.7 r-1.4 -5.9 17.1 1.8 

 III -1.1 -0.8 0.3 7.9 4.0 9.1 -11.1 1.3 

 IV 4.1 2.0 -2.0 2.8 -0.1 -1.3 6.3 1.4 

 ANNUAL 2.9 3.9 1.0 7.1 3.6 4.0 -1.8 1.8 

 2001 I -0.5 -1.1 -0.6 6.8 r2.9 7.4 -5.4 2.7 

 II 5.5 0.8 -4.4 2.9 r-0.3 -2.5 13.7 3.0 

 III 1.2 -3.1 -4.2 2.0 r1.1 0.8 1.4 1.0 

 IV 7.1 1.8 -5.0 3.1 3.6 -3.8 10.9 1.3 

 ANNUAL 2.5 0.3 -2.1 4.2 1.3 1.6 2.5 2.0 

 2002 I 5.9 3.5 -2.3 4.9 r3.4 -1.0 1.0 -0.3 

 II 1.9 2.1 0.2 3.7 r0.4 1.7 1.0 1.4 

 III 4.6 3.8 -0.8 1.4 r-0.7 -3.1 7.3 0.7 

 IV 1.2 1.2 0.0 1.2 r-0.8 0.0 3.8 1.4 

 ANNUAL 4.3 1.8 -2.4 3.1 1.5 -1.1 4.5 0.9 

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

 Percent change from corresponding quarter of previous year 

 2000 I 2.2 4.5 2.2 6.7 r3.3 4.4 -3.0 1.6 

 II 4.0 5.4 1.3 6.8 3.4 2.7 0.5 1.9 

 III 3.0 3.8 0.8 7.9 4.3 4.8 -3.0 1.9 

 IV 2.4 2.2 -0.2 6.6 3.1 4.1 -1.7 2.0 

 ANNUAL 2.9 3.9 1.0 7.1 3.6 4.0 -1.8 1.8 

 2001 I 2.6 1.8 -0.7 4.8 1.3 2.1 1.1 1.8 

 II 2.0 0.2 -1.7 5.1 1.6 3.0 0.4 2.1 

 III 2.5 -0.4 -2.8 3.6 0.9 1.0 3.7 2.0 

 IV 3.3 -0.4 -3.6 3.7 1.8 0.4 4.8 2.0 

 ANNUAL 2.5 0.3 -2.1 4.2 1.3 1.6 2.5 2.0 

 2002 I 4.9 0.8 -4.0 3.2 1.9 -1.6 6.6 1.2 

 II 4.0 1.1 -2.8 3.4 2.1 -0.6 3.5 0.9 

 III 4.9 2.8 -2.0 3.2 1.6 -1.6 5.0 0.8 

 IV 3.4 2.7 -0.7 2.8 0.5 -0.6 3.3 0.8 

 ANNUAL 4.3 1.8 -2.4 3.1 1.5 -1.1 4.5 0.9 

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

 See footnotes following Table 6. May 5, 2005 

 r=revised Source: Bureau of Labor Statistics 
17 

 Appendix table 2. Nonfarm business sector: Revised 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 

 2000 I 113.7 138.8 122.1 132.1 111.2 116.2 106.6 112.6 

 II 115.8 141.4 122.1 132.5 110.7 114.4 111.0 113.1 

 III 115.5 141.1 122.1 135.1 111.8 116.9 107.8 113.5 

 IV 116.6 141.8 121.7 135.8 111.6 116.5 109.4 113.9 

 ANNUAL 115.5 140.8 121.9 134.0 111.4 116.0 108.7 113.3 

 2001 I 116.4 141.4 121.5 138.1 112.4 118.6 107.9 114.6 

 II 118.1 141.9 120.1 139.0 r112.2 117.6 111.6 115.4 

 III 118.5 140.8 118.9 139.6 112.5 117.8 111.9 115.6 

 IV 120.4 141.2 117.3 140.7 113.5 116.8 114.7 116.0 

 ANNUAL 118.3 141.3 119.4 139.3 112.7 117.7 111.5 115.4 

 2002 I 122.4 142.6 116.5 142.5 r114.6 116.4 115.1 116.0 

 II 122.8 143.2 116.6 143.8 114.7 117.1 115.4 116.5 

 III 124.1 144.5 116.4 144.3 r114.5 116.2 117.7 116.8 

 IV 124.6 145.0 116.4 144.7 114.2 116.1 118.9 117.2 

 ANNUAL 123.5 143.9 116.5 143.8 114.5 116.5 116.8 116.6 

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

 Percent change from previous quarter at annual rate(5) 

 2000 I -1.6 -0.1 1.5 14.8 r10.5 16.7 -16.8 3.3 

 II 7.5 7.5 0.0 1.1 r-2.0 -6.0 17.4 1.8 

 III -1.0 -0.8 0.1 8.0 4.1 9.1 -11.0 1.4 

 IV 3.6 2.2 -1.4 2.3 -0.6 -1.3 6.3 1.3 

 ANNUAL 2.8 3.8 1.0 7.1 3.6 4.2 -1.8 1.9 

 2001 I -0.4 -1.1 -0.7 6.7 r2.8 7.2 -5.4 2.6 

 II 5.9 1.2 -4.4 2.6 r-0.5 -3.1 14.3 2.7 

 III 1.2 -2.9 -4.1 1.8 r1.0 0.6 0.9 0.7 

 IV 6.6 1.2 -5.1 3.1 3.7 -3.3 10.5 1.5 

 ANNUAL 2.5 0.4 -2.0 4.0 1.1 1.5 2.6 1.9 

 2002 I 6.9 4.0 -2.7 5.4 r3.9 -1.4 1.6 -0.3 

 II 1.3 1.7 0.4 3.7 r0.4 2.3 1.0 1.8 

 III 4.3 3.6 -0.6 1.2 r-0.9 -2.9 8.1 1.0 

 IV 1.5 1.4 -0.1 1.2 r-0.8 -0.3 4.2 1.3 

 ANNUAL 4.3 1.8 -2.5 3.2 1.6 -1.1 4.7 1.0 

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

 Percent change from corresponding quarter of previous year 

 2000 I 2.2 4.4 2.1 6.9 3.6 4.6 -2.7 1.9 

 II 3.9 5.3 1.4 6.8 3.4 2.9 0.4 2.0 

 III 2.9 3.6 0.8 8.0 4.4 5.0 -3.1 2.0 

 IV 2.1 2.1 0.1 6.4 2.9 4.3 -1.9 2.0 

 ANNUAL 2.8 3.8 1.0 7.1 3.6 4.2 -1.8 1.9 

 2001 I 2.4 1.9 -0.5 4.5 r1.0 2.1 1.2 1.8 

 II 2.0 0.4 -1.6 4.9 1.4 2.8 0.6 2.0 

 III 2.6 -0.2 -2.7 3.3 0.7 0.8 3.8 1.8 

 IV 3.3 -0.4 -3.6 3.6 1.7 0.3 4.8 1.9 

 ANNUAL 2.5 0.4 -2.0 4.0 1.1 1.5 2.6 1.9 

 2002 I 5.1 0.9 -4.1 3.2 2.0 -1.8 6.7 1.2 

 II 4.0 1.0 -2.9 3.5 2.2 -0.5 3.4 0.9 

 III 4.7 2.6 -2.0 3.3 r1.8 -1.3 5.2 1.0 

 IV 3.5 2.7 -0.8 2.9 0.6 -0.6 3.7 1.0 

 ANNUAL 4.3 1.8 -2.5 3.2 1.6 -1.1 4.7 1.0 

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

 See footnotes following Table 6. May 5, 2005 

 r=revised Source: Bureau of Labor Statistics 
18 

 Appendix table 3. Manufacturing sector: Revised 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 

 2000 I 132.6 138.1 104.1 133.2 112.1 100.5 

 II 134.4 140.0 104.1 132.5 110.7 98.6 

 III 134.0 139.0 103.8 135.9 112.4 101.4 

 IV 134.9 137.5 102.0 136.7 112.3 101.4 

 ANNUAL 134.1 138.6 103.4 134.7 112.0 100.5 

 2001 I 134.6 134.9 100.2 138.1 r112.4 102.7 

 II 135.8 133.1 98.0 137.3 110.9 101.1 

 III 137.0 131.3 95.8 137.0 110.4 100.0 

 IV 140.6 130.0 92.5 139.0 112.2 98.8 

 ANNUAL 136.9 132.3 96.6 137.8 111.5 100.7 

 2002 I 144.4 131.1 90.8 143.8 r115.6 99.6 

 II 146.5 132.4 90.4 146.7 117.0 100.2 

 III 148.7 133.2 89.6 148.3 r117.7 99.7 

 IV 149.5 132.1 88.4 149.4 117.9 99.9 

 ANNUAL 147.3 132.2 89.8 147.0 117.0 99.8 

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

 Percent change from previous quarter at annual rate(5) 

 2000 I 5.6 3.7 -1.9 21.8 r17.3 15.3 

 II 5.6 5.6 0.0 -2.1 r-5.1 -7.3 

 III -1.4 -2.8 -1.4 10.6 6.6 12.1 

 IV 2.8 -4.1 -6.7 2.4 -0.4 -0.3 

 ANNUAL 4.7 3.0 -1.6 9.2 5.6 4.2 

 2001 I -0.9 -7.6 -6.7 4.3 r0.4 5.2 

 II 3.8 -5.0 -8.5 -2.4 r-5.4 -5.9 

 III 3.5 -5.5 -8.6 -0.9 r-1.7 -4.2 

 IV 11.1 -3.7 -13.3 5.9 6.5 -4.6 

 ANNUAL 2.1 -4.6 -6.5 2.3 -0.5 0.2 

 2002 I 11.2 3.2 -7.2 14.6 r12.9 3.0 

 II 5.8 4.1 -1.6 8.5 r5.0 2.6 

 III 6.3 2.4 -3.7 4.3 r2.1 -1.9 

 IV 2.2 -3.2 -5.3 3.0 r0.9 0.8 

 ANNUAL 7.5 -0.1 -7.1 6.6 5.0 -0.8 

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

 Percent change from corresponding quarter of previous year 

 2000 I 4.7 3.8 -0.8 9.8 6.4 4.9 

 II 5.6 4.6 -0.9 8.5 5.1 2.8 

 III 5.1 3.3 -1.7 10.0 6.4 4.7 

 IV 3.1 0.5 -2.5 7.8 4.2 4.6 

 ANNUAL 4.7 3.0 -1.6 9.2 5.6 4.2 

 2001 I 1.5 -2.3 -3.7 3.7 0.3 2.2 

 II 1.0 -4.9 -5.9 3.6 0.2 2.5 

 III 2.3 -5.5 -7.6 0.8 -1.8 -1.4 

 IV 4.3 -5.5 -9.3 1.7 -0.1 -2.5 

 ANNUAL 2.1 -4.6 -6.5 2.3 -0.5 0.2 

 2002 I 7.3 -2.8 -9.4 4.1 2.8 -3.0 

 II 7.8 -0.5 -7.8 6.9 5.5 -0.9 

 III 8.6 1.5 -6.6 8.2 r6.6 -0.3 

 IV 6.3 1.6 -4.5 7.5 5.1 1.1 

 ANNUAL 7.5 -0.1 -7.1 6.6 5.0 -0.8 

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

 See footnotes following Table 6. May 5, 2005 

 r=revised Source: Bureau of Labor Statistics 
19 

 Appendix table 4. Durable manufacturing sector: Revised 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 

 2000 I 149.6 164.9 110.2 133.4 112.3 89.2 

 II 151.4 167.5 110.7 131.9 110.1 87.1 

 III 151.0 166.4 110.2 135.7 112.3 89.9 

 IV 151.0 164.1 108.6 135.4 111.3 89.7 

 ANNUAL 150.9 165.7 109.8 134.2 111.6 89.0 

 2001 I 150.3 160.1 106.5 136.4 111.0 90.7 

 II 151.7 157.6 103.9 135.8 r109.6 89.5 

 III 153.4 154.4 100.7 135.6 109.3 88.4 

 IV 156.8 151.5 96.6 137.9 111.3 87.9 

 ANNUAL 153.0 155.9 101.9 136.4 110.3 89.2 

 2002 I 161.8 153.1 94.6 140.8 r113.2 87.0 

 II 164.6 155.3 94.3 143.9 r114.8 87.4 

 III 167.7 156.6 93.4 145.0 r115.1 86.5 

 IV 170.6 156.3 91.6 146.1 r115.4 85.7 

 ANNUAL 166.1 155.3 93.5 143.9 114.6 86.6 

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

 Percent change from previous quarter at annual rate(5) 

 2000 I 9.8 7.9 -1.7 25.0 r20.3 13.9 

 II 4.9 6.6 1.6 -4.5 r-7.5 -9.0 

 III -1.1 -2.6 -1.6 12.1 8.1 13.3 

 IV 0.2 -5.4 -5.6 -0.7 -3.5 -0.9 

 ANNUAL 5.3 4.6 -0.7 9.7 6.1 4.2 

 2001 I -2.0 -9.5 -7.6 2.7 r-1.1 4.8 

 II 3.7 -6.1 -9.4 -1.7 r-4.7 -5.2 

 III 4.6 -7.7 -11.8 -0.6 r-1.4 -5.0 

 IV 9.2 -7.3 -15.2 7.1 7.7 -2.0 

 ANNUAL 1.4 -5.9 -7.2 1.6 -1.2 0.2 

 2002 I 13.3 4.1 -8.1 8.7 r7.1 -4.1 

 II 7.1 6.0 -1.0 9.0 r5.5 1.8 

 III 7.7 3.3 -4.0 3.2 r1.1 -4.2 

 IV 7.1 -0.7 -7.2 3.2 r1.1 -3.6 

 ANNUAL 8.6 -0.4 -8.3 5.5 3.9 -2.8 

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

 Percent change from corresponding quarter of previous year 

 2000 I 5.9 6.0 0.2 11.2 r7.7 5.0 

 II 5.9 6.5 0.6 8.9 5.5 2.8 

 III 5.6 4.4 -1.2 10.9 7.2 4.9 

 IV 3.4 1.5 -1.8 7.4 3.8 3.9 

 ANNUAL 5.3 4.6 -0.7 9.7 6.1 4.2 

 2001 I 0.5 -2.9 -3.4 2.2 -1.1 1.7 

 II 0.2 -5.9 -6.1 3.0 -0.4 2.8 

 III 1.6 -7.2 -8.7 -0.1 -2.7 -1.7 

 IV 3.8 -7.7 -11.1 1.8 0.0 -1.9 

 ANNUAL 1.4 -5.9 -7.2 1.6 -1.2 0.2 

 2002 I 7.7 -4.4 -11.2 3.3 2.0 -4.1 

 II 8.5 -1.5 -9.2 6.0 r4.7 -2.4 

 III 9.3 1.4 -7.2 6.9 r5.3 -2.2 

 IV 8.8 3.2 -5.1 6.0 r3.7 -2.6 

 ANNUAL 8.6 -0.4 -8.3 5.5 3.9 -2.8 

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

 See footnotes following Table 6. May 5, 2005 
20 

 r=revised Source: Bureau of Labor Statistics 
21 

 Appendix table 5. Nondurable manufacturing sector: Revised 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 

 2000 I 116.7 110.9 95.0 130.5 r109.8 111.8 

 II 118.7 112.0 94.4 131.4 109.7 110.7 

 III 118.0 111.1 94.1 133.7 110.7 113.3 

 IV 119.9 110.4 92.0 136.6 112.2 113.9 

 ANNUAL 118.5 111.1 93.7 133.2 110.8 112.4 

 2001 I 119.9 108.9 90.8 139.2 r113.3 116.1 

 II 120.8 107.8 89.2 138.0 111.5 114.3 

 III 120.9 107.1 88.6 137.8 111.1 114.0 

 IV 124.4 107.3 86.3 139.3 112.4 111.9 

 ANNUAL 121.5 107.8 88.7 138.6 112.1 114.1 

 2002 I 126.9 107.9 85.0 147.9 r118.9 116.5 

 II 128.3 108.4 84.5 150.5 120.1 117.4 

 III 129.7 108.7 83.8 152.9 121.3 117.9 

 IV 128.2 106.9 83.4 154.1 121.6 120.2 

 ANNUAL 128.2 108.0 84.2 151.3 120.5 118.0 

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

 Percent change from previous quarter at annual rate(5) 

 2000 I -0.1 -2.3 -2.2 15.4 r11.1 15.5 

 II 6.8 3.9 -2.8 2.7 r-0.4 -3.8 

 III -2.3 -3.2 -1.0 7.4 3.5 9.8 

 IV 6.6 -2.5 -8.5 8.9 5.9 2.2 

 ANNUAL 4.0 0.7 -3.2 7.8 4.3 3.6 

 2001 I -0.2 -5.3 -5.1 7.8 r3.8 8.0 

 II 3.2 -3.8 -6.8 -3.4 r-6.3 -6.3 

 III 0.3 -2.6 -2.9 -0.6 r-1.4 -0.9 

 IV 12.2 0.8 -10.1 4.3 4.9 -7.1 

 ANNUAL 2.5 -3.0 -5.3 4.0 1.2 1.5 

 2002 I 8.2 2.2 -5.5 27.1 r25.3 17.5 

 II 4.4 1.8 -2.4 7.4 r4.0 2.9 

 III 4.5 1.1 -3.2 6.4 r4.2 1.9 

 IV -4.5 -6.4 -2.0 3.1 r1.0 8.0 

 ANNUAL 5.6 0.2 -5.1 9.2 7.5 3.4 

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

 Percent change from corresponding quarter of previous year 

 2000 I 3.4 0.8 -2.5 6.7 r3.4 3.2 

 II 5.3 1.7 -3.5 7.3 3.9 1.8 

 III 4.2 1.5 -2.6 8.2 4.6 3.8 

 IV 2.7 -1.1 -3.7 8.5 4.9 5.7 

 ANNUAL 4.0 0.7 -3.2 7.8 4.3 3.6 

 2001 I 2.7 -1.9 -4.4 6.7 3.2 3.9 

 II 1.8 -3.7 -5.4 5.1 1.6 3.2 

 III 2.4 -3.6 -5.9 3.1 0.4 0.6 

 IV 3.8 -2.7 -6.3 1.9 0.1 -1.8 

 ANNUAL 2.5 -3.0 -5.3 4.0 1.2 1.5 

 2002 I 5.9 -0.9 -6.4 6.2 r5.0 0.3 

 II 6.2 0.6 -5.3 9.1 7.7 2.7 

 III 7.3 1.5 -5.4 10.9 9.2 3.4 

 IV 3.0 -0.4 -3.3 10.6 8.2 7.4 

 ANNUAL 5.6 0.2 -5.1 9.2 7.5 3.4 

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

 See footnotes following Table 6. May 5, 2005 
22 

 r=revised Source: Bureau of Labor Statistics 
23 

 Appendix table 6. Nonfinancial corporations: Revised 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 

 2000 I 120.5 150.3 124.7 129.7 109.2 107.7 101.9 106.1 114.6 106.9 

 II 121.1 151.1 124.8 130.5 108.9 107.7 103.5 106.6 115.9 107.4 

 III 121.9 152.4 125.0 132.9 110.0 109.0 104.8 107.9 107.4 107.8 

 IV 122.2 152.3 124.7 134.4 110.4 110.0 106.5 109.1 97.0 108.0 

 ANNUAL 121.5 151.5 124.7 132.0 109.7 108.6 104.2 107.4 108.7 107.5 

 2001 I 122.6 151.9 123.9 135.5 110.3 110.5 109.2 110.2 87.4 108.1 

 II 123.5 151.1 122.3 136.8 110.5 110.8 111.6 111.0 86.9 108.9 

 III 123.7 149.4 120.8 137.9 111.1 111.5 114.1 112.2 79.0 109.2 

 IV 124.5 148.2 119.1 139.3 112.4 111.9 115.7 113.0 75.5 109.6 

 ANNUAL 123.5 150.2 121.5 137.3 111.1 111.2 112.6 111.6 82.2 108.9 

 2002 I 126.7 150.2 118.5 139.9 112.5 110.4 113.6 111.3 88.8 109.3 

 II 128.2 151.7 118.4 141.3 r112.8 110.3 112.7 111.0 94.5 109.5 

 III 129.0 152.2 118.0 142.1 112.7 110.1 112.8 110.9 95.8 109.5 

 IV 129.6 152.4 117.6 142.8 r112.8 110.2 112.8 110.9 102.3 110.1 

 ANNUAL 128.4 151.6 118.1 141.5 112.7 110.3 113.0 111.0 95.4 109.6 

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

 Percent change from previous quarter at annual rate(5) 

 2000 I 7.2 9.5 2.1 15.3 r11.0 7.6 1.4 5.9 -25.5 2.3 

 II 2.1 2.3 0.2 2.3 r-0.9 0.1 6.6 1.8 4.7 2.1 

 III 2.7 3.4 0.6 7.7 3.8 4.9 5.0 4.9 -26.2 1.5 

 IV 0.8 -0.2 -0.9 4.5 1.6 3.7 6.7 4.5 -33.4 0.6 

 ANNUAL 3.6 5.2 1.5 6.8 3.4 3.1 3.8 3.3 -15.8 1.2 

 2001 I 1.4 -1.1 -2.4 3.4 r-0.5 1.9 10.5 4.1 -34.1 0.6 

 II 2.9 -2.2 -4.9 3.8 r0.7 0.9 9.2 3.1 -2.5 2.7 

 III 0.6 -4.4 -5.0 3.3 r2.4 2.6 8.9 4.3 -31.8 1.3 

 IV 2.6 -3.0 -5.5 4.2 4.8 1.6 5.9 2.8 -16.3 1.4 

 ANNUAL 1.7 -0.9 -2.5 4.1 1.2 2.4 8.1 3.9 -24.3 1.3 

 2002 I 7.5 5.4 -2.0 1.7 r0.2 -5.4 -7.0 -5.9 91.5 -1.3 

 II 4.6 4.2 -0.3 4.2 r0.9 -0.3 -3.1 -1.1 28.2 0.8 

 III 2.6 1.1 -1.4 2.0 r-0.1 -0.6 0.3 -0.3 5.8 0.1 

 IV 1.9 0.7 -1.2 2.1 r0.1 0.3 0.0 0.2 29.9 2.3 

 ANNUAL 3.9 1.0 -2.8 3.0 1.4 -0.8 0.3 -0.5 16.0 0.6 

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

 Percent change from corresponding quarter of previous year 

 2000 I 3.4 6.1 2.6 5.8 2.5 2.3 2.8 2.4 -14.1 0.6 

 II 3.5 5.5 2.0 6.2 2.9 2.7 3.8 3.0 -13.2 1.1 

 III 4.1 5.6 1.4 7.6 4.0 3.3 3.8 3.5 -14.9 1.5 

 IV 3.2 3.7 0.5 7.3 3.8 4.0 4.9 4.3 -21.3 1.6 

 ANNUAL 3.6 5.2 1.5 6.8 3.4 3.1 3.8 3.3 -15.8 1.2 

 2001 I 1.7 1.1 -0.6 4.4 1.0 2.6 7.2 3.8 -23.7 1.2 

 II 1.9 0.0 -1.9 4.8 1.4 2.8 7.8 4.1 -25.0 1.3 

 III 1.4 -2.0 -3.3 3.7 1.0 2.3 8.8 4.0 -26.5 1.3 

 IV 1.9 -2.7 -4.5 3.7 1.8 1.8 8.6 3.6 -22.2 1.5 

 ANNUAL 1.7 -0.9 -2.5 4.1 1.2 2.4 8.1 3.9 -24.3 1.3 

 2002 I 3.4 -1.1 -4.4 3.2 2.0 -0.1 4.0 1.0 1.6 1.0 

 II 3.8 0.4 -3.2 3.3 r2.1 -0.4 1.0 0.0 8.8 0.6 

 III 4.3 1.9 -2.3 3.0 r1.5 -1.2 -1.1 -1.2 21.4 0.3 

 IV 4.1 2.8 -1.2 2.5 0.3 -1.5 -2.5 -1.8 35.5 0.5 

 ANNUAL 3.9 1.0 -2.8 3.0 1.4 -0.8 0.3 -0.5 16.0 0.6 

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

 See footnotes following Table 6. May 5, 2005 

 r=revised Source: Bureau of Labor Statistics