Transmission of material in this release is embargoed until USDL 16-1147 

8:30 a.m. (EDT) Tuesday, June 7, 2016 

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

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

PRODUCTIVITY AND COSTS

First Quarter 2016, Revised

Nonfarm business sector labor productivity decreased at a 0.6-percent annual rate during the first

quarter of 2016, the U.S. Bureau of Labor Statistics reported today, as output increased 0.9 percent and 

hours worked increased 1.5 percent. (All quarterly percent changes in this release are seasonally 

adjusted annual rates.) From the first quarter of 2015 to the first quarter of 2016, productivity increased 

0.7 percent. (See chart 1 and table A.) 

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

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

released today were based on more recent source data than were available for the preliminary report.

Unit labor costs in the nonfarm business sector increased 4.5 percent in the first quarter of 2016, 

reflecting a 3.9-percent increase in hourly compensation and a 0.6-percent decline in productivity. Unit 

labor costs increased 3.0 percent over the last four quarters. (See chart 2 and tables A and 2.) 

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

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

them.

Manufacturing sector labor productivity increased 1.3 percent in the first quarter of 2016, as output 

increased 0.6 percent and hours worked decreased 0.7 percent. Productivity decreased 0.6 percent in the 

durable goods manufacturing sector and increased 4.2 percent in the nondurable goods sector. Over the 

Chart 1. Labor productivity, nonfarm business, all persons, 

2012Q1 – 2016Q1

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2012 2013 2014 2015 2016

From previous quarter, annual rate

From same quarter a year ago

Percent change Percent change

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

2012Q1 – 2016Q1

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2012 2013 2014 2015 2016

From previous quarter, annual rate

From same quarter a year ago
-2- 

last four quarters, manufacturing productivity increased 1.3 percent, as output increased 0.6 percent and 

hours declined 0.7 percent. (See tables A, 3, 4, and 5.) Unit labor costs in manufacturing increased 

1.1 percent in the first quarter of 2016 and rose 3.6 percent from the same quarter a year ago. Hourly 

compensation increased 2.5 percent in the first quarter of 2016, and 5.0 percent since the same quarter a 

year ago—the largest four-quarter gain since a 5.8-percent increase from the first quarter of 2004 to the 

first quarter of 2005. (See tables A and 3.) 

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

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

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

Preliminary first quarter 2016 measures were announced today for the nonfinancial corporate sector. 

Productivity increased 2.5 percent in the first quarter of 2016 and increased 0.8 percent over the last four 

quarters. Unit profits of nonfinancial corporations grew at a 13.4 percent annual rate in the first quarter 

of 2016, but fell 8.0 percent over the last four quarters. (See tables C and 6.) 

Revised measures 

Table B presents previous and revised productivity and related measures for the business, nonfarm 

business, and manufacturing sectors, for the first quarter of 2016 and the fourth quarter of 2015. 

In the first quarter of 2016, nonfarm business productivity fell 0.6 percent, a smaller decline than the 

preliminary estimate, due to a 0.5-percentage point upward revision to output. Unit labor costs were 

revised up as a 0.9-percentage point upward revision to hourly compensation was partially offset by 

the 0.4-percentage point upward revision to productivity. In the manufacturing sector, productivity 

increased 1.3 percent in the first quarter of 2016—less than the preliminary estimate—reflecting an 

upward revision to hours worked and a slight downward revision to output. Unit labor costs increased

1.1 percent rather than declining 1.2 percent, due primarily to a 1.9-percentage point upward revision 

to hourly compensation. 

 

In the fourth quarter of 2015, nonfarm business sector productivity decreased at the same 1.7-percent 

rate reported May 4, while manufacturing productivity was revised down slightly. In both sectors, large 

upward revisions to hourly compensation resulted in large upward revisions to unit labor costs. 

In the nonfinancial corporate sector, productivity declined 0.9 percent in the fourth quarter of 2015 rather 

than falling 2.2 percent as previously reported, due solely to an upward revision to output. Annual 

average productivity increased 0.9 percent from 2014 to 2015, slightly more than the 0.8-percent 

increase reported May 4, but well below the long-term rate from 1947 to 2015 of 2.3 percent. Unit 

profits of nonfinancial corporations fell 36.6 percent in the fourth quarter of 2015. (See tables C and 6.)

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

www.bls.gov/lpc/#data. 

______________ 

The preliminary Productivity and Costs news release for second-quarter 2016 is scheduled to be 

released on Tuesday, August 9, 2016 at 8:30 a.m. (EDT). 
-3- 

Table A. Revised first-quarter 2016 measures: percent change from previous quarter, at annual rate (Q to Q) and from same quarter a year 

ago (Y to Y)

Sector

 Nonfarm

 Business Business Manufacturing

 Durable

 Manufacturing

 Nondurable

 Manufacturing

Q to Q Y to Y Q to Q Y to Y Q to Q Y to Y Q to Q Y to Y Q to Q Y to Y

Labor Productivity -0.6 0.7 -0.7 0.8 1.3 1.3 -0.6 1.1 4.2 1.5

Output 0.9 2.3 0.8 2.4 0.6 0.6 -0.2 0.3 1.6 1.1

Hours worked 1.5 1.6 1.6 1.6 -0.7 -0.7 0.4 -0.8 -2.5 -0.4

Hourly compensation 3.9 3.7 3.8 3.7 2.5 5.0 1.6 4.9 4.0 5.2

Real hourly compensation 4.2 2.6 4.1 2.6 2.8 3.8 1.9 3.8 4.3 4.0

Unit labor costs 4.5 3.0 4.5 2.9 1.1 3.6 2.2 3.7 -0.2 3.6

Table B. Revised and previous measures: first quarter 2016 and fourth quarter 2015

Sector

 Nonfarm

 Business Business Manufacturing

 Durable

 Manufacturing

 Nondurable

 Manufacturing

Revised Previous Revised Previous Revised Previous Revised Previous Revised Previous

Percent change, annual rate, first quarter 2016 

Labor Productivity -0.6 -1.0 -0.7 -1.1 1.3 1.9 -0.6 0.1 4.2 4.4

Output 0.9 0.4 0.8 0.4 0.6 0.7 -0.2 -0.1 1.6 1.7

Hours worked 1.5 1.5 1.6 1.6 -0.7 -1.1 0.4 -0.3 -2.5 -2.6

Hourly compensation 3.9 3.0 3.8 2.9 2.5 0.6 1.6 -0.6 4.0 2.8

Real hourly compensation 4.2 3.4 4.1 3.3 2.8 0.9 1.9 -0.3 4.3 3.1

Unit labor costs 4.5 4.1 4.5 4.1 1.1 -1.2 2.2 -0.8 -0.2 -1.6

Percent change, annual rate, fourth quarter 2015

Labor Productivity -1.7 -1.7 -1.8 -1.8 -1.2 -1.0 -2.1 -2.1 0.1 0.3

Output 1.5 1.5 1.5 1.5 -0.5 -0.4 -1.4 -1.4 0.6 0.8

Hours worked 3.3 3.3 3.4 3.4 0.6 0.6 0.7 0.7 0.5 0.5

Hourly compensation 3.6 0.9 3.3 0.7 7.9 2.5 8.8 2.8 6.2 2.0

Real hourly compensation 2.7 0.1 2.5 -0.1 7.1 1.7 8.0 1.9 5.3 1.2

Unit labor costs 5.4 2.7 5.3 2.6 9.2 3.6 11.2 4.9 6.1 1.7

Table C. Nonfinancial corporations: preliminary first-quarter 2016 and revised fourth-quarter 2015 productivity and cost measures

Labor

Productivity Output

Hours

worked

Hourly 

compensation

Real hourly 

compensation

Unit labor 

costs Unit profits

Implicit price 

deflator

Percent change, annual rate, first quarter 2016

Q to Q 2.5 3.2 0.7 3.8 4.2 1.3 13.4 -2.0

Y to Y 0.8 2.5 1.7 3.7 2.6 2.8 -8.0 0.2

Percent change, annual rate, fourth quarter 2015

Q to Q Revised -0.9 2.7 3.6 3.2 2.4 4.1 -36.6 0.1

Q to Q Previous -2.2 1.3 3.6 0.9 0.1 3.1 -35.7 0.1
-4- 

TECHNICAL NOTES

Labor Hours 

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

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

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

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

counting a person who is employed by two or more establishments at each place of employment. The CES 

also provides average weekly paid hours of production and nonsupervisory workers in these establishments. 

Weekly paid hours are adjusted to hours at work using data from the National Compensation Survey (NCS) 

for 2001 forward and data from the BLS Hours at Work survey, conducted for this purpose, for earlier years. 

The Office of Productivity and Technology estimates average weekly hours at work for nonproduction and 

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

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

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

other jobs, separately, the BLS productivity measures assign all hours worked to the correct industrial sector. 

Hours for government enterprises are derived from the CPS, the CES, and the National Income and Product 

Accounts (NIPA) prepared by the Bureau of Economic Analysis (BEA) of the Department of Commerce. 

Output

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

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

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

Business output accounted for about 76 percent of the value of GDP in 2015. Nonfarm business, which 

excludes farming, accounted for about 75 percent of GDP in 2015. 

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

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

from the BLS. These deflators are based on data from the BLS producer price program and other sources. 

The industry shipments are aggregated using annual weights, and intrasector transactions are removed. 

Quarterly manufacturing output measures are based on the indexes of industrial production prepared monthly 

by the Board of Governors of the Federal Reserve System, adjusted to be consistent with annual indexes of 

manufacturing sector output prepared by BLS. 

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

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

GDP: general government; nonprofit institutions; private households; unincorporated business; and those 

corporations classified as offices of bank holding companies, offices of other holding companies, or offices 

in the finance and insurance sector. Nonfinancial corporations accounted for about 50 percent of the value of 

GDP in 2015. 

Labor Productivity

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

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

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

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

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

Labor Compensation 

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

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

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

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

private households are subtracted from compensation of domestic employees to derive employee 
-5- 

compensation for the business sector. The labor compensation of proprietors cannot be explicitly identified 

and must be estimated. This is done by assuming that proprietors have the same hourly compensation as 

employees in the same sector. The quarterly labor productivity and cost measures do not contain estimates of 

compensation for unpaid family workers. 

Unit Labor Costs 

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

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

compensation increase unit labor costs; labor productivity increases offset compensation increases and lower 

unit labor costs. 

Presentation of the data

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

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

year, and as index number series where 2009=100. Annual data are presented both as index number series 

and percent changes from the previous year. 

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

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

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

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

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

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

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

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

phone: 202-691-5606; Federal Relay Service number: 1-800-877-8339. 
-6- 

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

seasonally adjusted.

 Real

 Hourly hourly Unit Implicit

Year Labor compen- compen- Unit nonlabor price

and produc- Hours sation sation labor payments deflator

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

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

 Percent change from previous quarter at annual rate (5)

2016 I -0.7 r 0.8 r 1.6 3.8 r 4.1 r 4.5 r -6.1 r -0.1 r

2015 ANNUAL 0.6 3.0 2.3 2.8 r 2.7 r 2.2 r -1.2 r 0.7 

2015 IV -1.8 1.5 3.4 3.3 r 2.5 r 5.3 r -5.7 r 0.5 

 III 2.4 2.2 -0.2 2.4 1.0 0.0 2.2 0.9 

 II 3.4 5.0 1.6 5.5 2.9 2.1 2.5 2.2 

 I -1.0 0.6 1.6 1.6 4.6 2.6 -3.7 -0.1 

2014 ANNUAL 0.7 3.0 2.3 2.7 1.0 2.0 0.6 1.4 

2014 IV -2.0 2.6 4.7 3.6 3.9 5.6 -8.3 -0.6 

 III 2.6 5.5 2.9 2.5 1.7 0.0 2.9 1.2 

 II 2.5 5.7 3.1 -1.4 -3.3 -3.7 10.7 2.3 

 I -3.3 -1.7 1.6 6.3 4.0 9.9 -8.6 1.5 

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

 Percent change from corresponding quarter of previous year

2016 I 0.8 r 2.4 r 1.6 3.7 r 2.6 r 2.9 r -1.9 r 0.9 r

2015 ANNUAL 0.6 3.0 2.3 2.8 r 2.7 r 2.2 r -1.2 r 0.7 

2015 IV 0.7 2.3 1.6 3.2 r 2.8 r 2.5 r -1.3 r 0.9 

 III 0.7 2.6 1.9 3.2 3.1 2.6 -1.9 0.6 

 II 0.7 3.4 2.7 3.3 3.3 2.6 -1.8 0.7 

 I 0.5 3.6 3.1 1.6 1.7 1.1 0.1 0.7 

2014 ANNUAL 0.7 3.0 2.3 2.7 1.0 2.0 0.6 1.4 

2014 IV -0.1 3.0 3.1 2.7 1.5 2.8 -1.1 1.1 

 III 1.3 3.6 2.3 2.4 0.7 1.1 2.1 1.5 

 II 1.0 3.2 2.2 1.9 -0.2 0.9 2.7 1.7 

 I 0.5 2.2 1.7 3.7 2.3 3.3 -1.3 1.3 

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

 Indexes 2009=100

2016 I 105.9 r 118.5 r 111.9 r 116.9 r 105.4 r 110.3 r 108.3 r 109.5 r

2015 ANNUAL 106.0 117.3 110.7 114.4 r 103.5 r 107.9 r 110.8 r 109.1 

2015 IV 106.1 r 118.3 111.4 r 115.8 r 104.3 r 109.1 r 110.0 r 109.5 

 III 106.6 117.8 110.5 114.8 103.7 107.7 111.7 109.4 

 II 106.0 117.2 110.6 114.2 103.4 107.7 111.0 109.1 

 I 105.1 115.8 110.1 112.6 102.7 107.2 110.4 108.5 

2014 ANNUAL 105.3 113.9 108.2 111.2 100.8 105.6 112.1 108.4 

2014 IV 105.4 115.6 109.7 112.2 101.5 106.5 111.4 108.5 

 III 105.9 114.8 108.4 111.2 100.6 105.0 113.9 108.7 

 II 105.2 113.3 107.7 110.5 100.2 105.0 113.0 108.4 

 I 104.6 111.8 106.8 110.9 101.0 106.0 110.2 107.8 

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

See footnotes following Table 6. June 7, 2016

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

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

prices, seasonally adjusted.

 Real

 Hourly hourly Unit Implicit

Year Labor compen- compen- Unit nonlabor price

and produc- Hours sation sation labor payments deflator

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

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

 Percent change from previous quarter at annual rate (5)

2016 I -0.6 r 0.9 r 1.5 3.9 r 4.2 r 4.5 r -5.4 r 0.3 r

2015 ANNUAL 0.7 2.9 2.1 3.0 r 2.9 r 2.3 r -0.7 r 1.0 

2015 IV -1.7 1.5 3.3 3.6 r 2.7 r 5.4 r -5.0 r 0.9 

 III 2.0 1.8 -0.2 2.3 1.0 0.4 1.9 1.0 

 II 3.1 5.1 1.9 5.2 2.6 2.0 2.8 2.3 

 I -0.8 0.5 1.3 1.8 4.8 2.6 -2.3 0.5 

2014 ANNUAL 0.8 3.0 2.2 2.8 1.2 2.0 0.9 1.5 

2014 IV -1.7 2.6 4.4 3.9 4.2 5.7 -8.1 -0.5 

 III 3.1 5.5 2.3 3.3 2.4 0.1 4.1 1.8 

 II 2.4 5.4 3.0 -1.3 -3.2 -3.5 9.5 1.9 

 I -3.1 -1.2 2.0 5.9 3.6 9.4 -8.5 1.3 

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

 Percent change from corresponding quarter of previous year

2016 I 0.7 r 2.3 r 1.6 3.7 r 2.6 r 3.0 r -1.5 r 1.1 

2015 ANNUAL 0.7 2.9 2.1 3.0 r 2.9 r 2.3 r -0.7 r 1.0 

2015 IV 0.6 2.2 1.6 3.2 r 2.8 r 2.6 r -0.7 r 1.2 

 III 0.6 2.5 1.8 3.3 3.1 2.7 -1.5 0.8 

 II 0.9 3.4 2.5 3.5 3.5 2.6 -1.0 1.0 

 I 0.7 3.5 2.7 1.9 2.0 1.2 0.6 0.9 

2014 ANNUAL 0.8 3.0 2.2 2.8 1.2 2.0 0.9 1.5 

2014 IV 0.1 3.0 2.9 2.9 1.7 2.8 -1.1 1.1 

 III 1.5 3.7 2.2 2.6 0.8 1.1 2.5 1.7 

 II 1.0 3.2 2.1 2.0 -0.1 0.9 2.9 1.8 

 I 0.4 2.1 1.7 3.8 2.4 3.4 -0.7 1.6 

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

 Indexes 2009=100

2016 I 106.0 r 118.4 r 111.8 r 117.1 r 105.6 r 110.5 r 108.2 r 109.5 r

2015 ANNUAL 106.0 117.2 110.6 114.5 r 103.7 r 108.0 r 110.3 r 109.0 

2015 IV 106.1 r 118.2 111.4 r 116.0 r 104.5 r 109.3 r 109.7 r 109.5 

 III 106.6 117.7 110.5 115.0 103.8 107.9 111.1 109.2 

 II 106.1 117.2 110.5 114.3 103.6 107.8 110.6 109.0 

 I 105.3 115.8 110.0 112.9 102.9 107.2 109.9 108.3 

2014 ANNUAL 105.3 114.0 108.3 111.2 100.8 105.7 111.1 107.9 

2014 IV 105.5 115.6 109.6 112.4 101.7 106.6 110.5 108.2 

 III 105.9 114.9 108.5 111.3 100.7 105.1 112.9 108.3 

 II 105.1 113.4 107.9 110.4 100.1 105.0 111.8 107.8 

 I 104.5 111.9 107.1 110.8 100.9 106.0 109.2 107.4 

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

See footnotes following Table 6. June 7, 2016

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

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

seasonally adjusted.

 Real

Year Labor Hourly hourly Unit

and produc- Hours compensa- compensa- labor

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

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

 Percent change from previous quarter at annual rate (5)

2016 I 1.3 r 0.6 r -0.7 r 2.5 r 2.8 r 1.1 r

2015 ANNUAL 0.2 1.1 0.8 2.5 r 2.4 r 2.3 r

2015 IV -1.2 r -0.5 r 0.6 7.9 r 7.1 r 9.2 r

 III 3.7 1.9 -1.7 4.0 2.6 0.3 

 II 1.5 0.6 -0.9 5.6 3.0 4.0 

 I -1.7 -1.4 0.3 -2.4 0.5 -0.7 

2014 ANNUAL -0.1 1.5 1.6 2.7 1.1 2.8 

2014 IV -1.2 2.6 3.9 4.9 5.2 6.1 

 III 0.9 2.5 1.6 2.5 1.6 1.5 

 II 1.4 4.9 3.4 -1.8 -3.7 -3.2 

 I 0.3 -0.9 -1.2 8.9 6.4 8.5 

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

 Percent change from corresponding quarter of previous year

2016 I 1.3 r 0.6 r -0.7 r 5.0 r 3.8 r 3.6 r

2015 ANNUAL 0.2 1.1 0.8 2.5 r 2.4 r 2.3 r

2015 IV 0.6 0.1 r -0.4 3.7 r 3.3 r 3.1 r

 III 0.6 0.9 0.4 2.9 2.8 2.4 

 II -0.1 1.1 1.2 2.6 2.6 2.7 

 I -0.1 2.1 2.3 0.7 0.8 0.9 

2014 ANNUAL -0.1 1.5 1.6 2.7 1.1 2.8 

2014 IV 0.4 2.3 1.9 3.5 2.3 3.2 

 III 0.2 2.1 1.9 2.3 0.5 2.1 

 II -0.6 1.3 2.0 1.8 -0.2 2.4 

 I -0.4 0.2 0.5 3.3 1.9 3.7 

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

 Indexes 2009=100

2016 I 119.4 r 128.2 r 107.4 r 113.8 r 102.6 r 95.3 r

2015 ANNUAL 118.6 r 127.8 r 107.7 110.6 r 100.1 r 93.2 r

2015 IV 119.0 r 128.0 r 107.6 113.1 r 101.9 r 95.0 r

 III 119.4 128.2 107.4 111.0 100.2 93.0 

 II 118.3 127.6 107.9 109.9 99.6 92.9 

 I 117.8 127.4 108.1 108.4 98.8 92.0 

2014 ANNUAL 118.4 126.5 106.8 107.9 97.8 91.2 

2014 IV 118.3 127.8 108.0 109.1 98.7 92.2 

 III 118.7 127.0 107.0 107.8 97.5 90.8 

 II 118.4 126.2 106.6 107.1 97.1 90.5 

 I 118.0 124.7 105.7 107.6 98.0 91.2 

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

See footnotes following Table 6. June 7, 2016

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

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

costs, seasonally adjusted.

 Real

Year Labor Hourly hourly Unit

and produc- Hours compensa- compensa- labor

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

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

 Percent change from previous quarter at annual rate (5)

2016 I -0.6 r -0.2 r 0.4 r 1.6 r 1.9 r 2.2 r

2015 ANNUAL 0.0 0.5 0.5 2.4 r 2.3 r 2.4 r

2015 IV -2.1 -1.4 0.7 8.8 r 8.0 r 11.2 r

 III 5.1 2.3 -2.7 3.6 2.3 -1.4 

 II 2.2 0.5 -1.7 5.6 3.1 3.3 

 I -4.0 -4.0 0.1 -3.5 -0.7 0.5 

2014 ANNUAL 0.8 3.0 2.1 2.3 0.6 1.4 

2014 IV -0.3 2.0 2.3 6.1 6.4 6.5 

 III 0.8 3.8 2.9 2.4 1.6 1.6 

 II 2.2 7.2 4.9 -2.1 -4.0 -4.2 

 I 1.6 0.5 -1.1 8.6 6.2 6.9 

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

 Percent change from corresponding quarter of previous year

2016 I 1.1 r 0.3 -0.8 r 4.9 r 3.8 r 3.7 r

2015 ANNUAL 0.0 0.5 0.5 2.4 r 2.3 r 2.4 r

2015 IV 0.2 -0.7 -0.9 3.5 r 3.1 r 3.3 r

 III 0.7 0.2 -0.5 2.9 2.7 2.2 

 II -0.4 0.5 0.9 2.6 2.6 2.9 

 I -0.4 2.2 2.5 0.7 0.8 1.0 

2014 ANNUAL 0.8 3.0 2.1 2.3 0.6 1.4 

2014 IV 1.1 3.3 2.2 3.7 2.5 2.6 

 III 1.1 4.0 2.9 1.5 -0.2 0.4 

 II 0.5 3.2 2.6 1.3 -0.8 0.7 

 I 0.7 1.4 0.7 2.7 1.3 2.0 

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

 Indexes 2009=100

2016 I 123.0 r 135.6 r 110.3 r 112.4 r 101.3 r 91.4 r

2015 ANNUAL 122.7 r 135.7 r 110.6 109.3 r 98.9 r 89.1 r

2015 IV 123.2 r 135.7 r 110.2 111.9 r 100.9 r 90.9 r

 III 123.8 136.2 110.0 109.6 98.9 88.5 

 II 122.3 135.4 110.8 108.6 98.4 88.8 

 I 121.6 135.3 111.2 107.1 97.7 88.1 

2014 ANNUAL 122.7 134.9 110.0 106.7 96.7 87.0 

2014 IV 122.9 136.6 111.2 108.1 97.8 88.0 

 III 123.0 136.0 110.6 106.5 96.3 86.6 

 II 122.7 134.7 109.8 105.9 95.9 86.3 

 I 122.1 132.4 108.5 106.4 96.9 87.2 

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

See footnotes following Table 6. June 7, 2016

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

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

costs, seasonally adjusted.

 Real

Year Labor Hourly hourly Unit

and produc- Hours compensa- compensa- labor

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

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

 Percent change from previous quarter at annual rate (5)

2016 I 4.2 r 1.6 r -2.5 r 4.0 r 4.3 r -0.2 r

2015 ANNUAL 0.2 1.7 1.5 2.7 r 2.6 r 2.5 r

2015 IV 0.1 r 0.6 r 0.5 6.2 r 5.3 r 6.1 r

 III 1.5 1.4 -0.1 4.9 3.5 3.3 

 II 0.3 0.7 0.4 5.6 3.0 5.3 

 I 1.0 1.8 0.8 -0.2 2.7 -1.2 

2014 ANNUAL -0.9 -0.3 0.6 3.5 1.8 4.4 

2014 IV -3.0 3.4 6.6 2.8 3.2 6.0 

 III 1.8 1.2 -0.7 2.4 1.6 0.6 

 II 1.4 2.2 0.8 -1.4 -3.4 -2.8 

 I -1.1 -2.4 -1.3 9.3 6.8 10.5 

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

 Percent change from corresponding quarter of previous year

2016 I 1.5 r 1.1 -0.4 r 5.2 r 4.0 r 3.6 r

2015 ANNUAL 0.2 1.7 1.5 2.7 r 2.6 r 2.5 r

2015 IV 0.7 r 1.1 r 0.4 4.1 r 3.6 r 3.3 r

 III -0.1 1.8 1.9 3.2 3.1 3.3 

 II 0.0 1.7 1.7 2.6 2.6 2.6 

 I 0.3 2.1 1.8 0.9 1.0 0.6 

2014 ANNUAL -0.9 -0.3 0.6 3.5 1.8 4.4 

2014 IV -0.2 1.1 1.3 3.2 2.0 3.4 

 III -0.3 -0.1 0.2 3.6 1.8 3.9 

 II -1.6 -0.8 0.8 2.7 0.7 4.4 

 I -1.5 -1.3 0.2 4.4 3.0 6.0 

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

 Indexes 2009=100

2016 I 111.7 r 114.7 r 102.7 r 115.9 r 104.5 r 103.8 r

2015 ANNUAL 110.3 r 113.9 r 103.2 112.5 r 101.8 r 101.9 r

2015 IV 110.6 r 114.3 r 103.3 114.8 r 103.4 r 103.8 r

 III 110.5 114.1 103.2 113.1 102.1 102.3 

 II 110.1 113.7 103.2 111.7 101.2 101.5 

 I 110.1 113.5 103.1 110.2 100.5 100.2 

2014 ANNUAL 110.1 112.0 101.7 109.5 99.2 99.5 

2014 IV 109.8 113.0 102.9 110.3 99.8 100.5 

 III 110.6 112.1 101.3 109.5 99.0 99.0 

 II 110.1 111.8 101.5 108.9 98.7 98.9 

 I 109.7 111.1 101.3 109.3 99.5 99.6 

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

See footnotes following Table 6. June 7, 2016

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

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

unit profits, and prices, seasonally adjusted.

 Real

 Hourly hourly Unit Total Implicit

Year Labor compen- compen- Unit nonlabor unit Unit price

and produc- Hours sation sation labor costs costs profits deflator

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

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

 Percent change from previous quarter at annual rate (5)

2016 I 2.5 3.2 0.7 3.8 4.2 1.3 -14.7 -4.1 13.4 -2.0 

2015 ANNUAL 0.9 r 3.1 r 2.2 2.1 r 2.0 r 1.2 -0.3 r 0.7 -5.5 r -0.2 

2015 IV -0.9 r 2.7 r 3.6 3.2 r 2.4 r 4.1 r 14.8 r 7.4 r -36.6 r 0.1 

 III 0.7 2.2 1.5 2.4 1.1 1.7 1.1 1.5 -5.7 0.5 

 II 1.1 2.0 0.9 5.2 2.7 4.1 -2.9 1.8 5.8 2.4 

 I -1.7 -0.3 1.4 0.8 3.8 2.6 3.2 2.8 -19.3 -0.8 

2014 ANNUAL 0.5 3.2 2.7 2.5 0.8 2.0 -1.4 0.9 -0.4 0.7 

2014 IV 3.9 7.4 3.4 2.0 2.3 -1.8 -6.4 -3.3 -6.5 -3.8 

 III 2.4 5.2 2.7 1.6 0.8 -0.8 -1.1 -0.9 17.2 1.6 

 II 1.1 6.2 5.0 -2.3 -4.2 -3.3 -3.4 -3.4 27.4 0.5 

 I -1.3 0.2 1.6 8.8 6.4 10.3 -0.8 6.5 -22.0 1.9 

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

 Percent change from corresponding quarter of previous year

2016 I 0.8 2.5 1.7 3.7 2.6 2.8 -1.0 1.6 -8.0 0.2 

2015 ANNUAL 0.9 r 3.1 r 2.2 2.1 r 2.0 r 1.2 -0.3 r 0.7 -5.5 r -0.2 

2015 IV -0.2 r 1.6 r 1.8 2.9 r 2.5 r 3.1 r 3.9 r 3.4 r -15.5 r 0.5 

 III 1.0 2.8 1.8 2.6 2.5 1.6 -1.3 0.7 -6.8 -0.5 

 II 1.4 3.5 2.1 2.4 2.4 1.0 -1.8 0.1 -1.7 -0.2 

 I 1.4 4.6 3.1 0.5 0.6 -0.9 -2.0 -1.2 3.0 -0.6 

2014 ANNUAL 0.5 3.2 2.7 2.5 0.8 2.0 -1.4 0.9 -0.4 0.7 

2014 IV 1.5 4.7 3.2 2.5 1.2 0.9 -2.9 -0.3 2.1 0.0 

 III 0.6 3.4 2.9 2.3 0.5 1.7 -1.1 0.8 4.1 1.3 

 II -0.5 2.3 2.8 1.8 -0.3 2.3 -0.6 1.4 -1.9 0.9 

 I 0.3 2.2 1.9 3.4 1.9 3.1 -0.7 1.8 -6.1 0.7 

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

 Indexes 2009=100

2016 I 110.0 125.5 114.0 115.5 104.2 105.0 95.0 101.6 131.8 104.8 

2015 ANNUAL 109.4 r 123.4 r 112.8 113.1 r 102.4 r 103.4 r 96.3 r 101.0 r 139.8 r 105.1 

2015 IV 109.4 r 124.5 r 113.8 114.4 r 103.1 r 104.6 r 98.8 r 102.7 r 127.8 r 105.3 

 III 109.6 123.7 112.8 113.5 102.5 103.6 95.5 100.9 143.1 105.3 

 II 109.4 123.0 112.4 112.9 102.2 103.2 95.2 100.5 145.3 105.2 

 I 109.1 122.4 112.2 111.4 101.6 102.1 95.9 100.0 143.2 104.6 

2014 ANNUAL 108.4 119.6 110.4 110.7 100.3 102.1 96.6 100.3 148.0 105.3 

2014 IV 109.6 122.5 111.8 111.2 100.6 101.5 95.1 99.4 151.1 104.8 

 III 108.5 120.3 110.8 110.7 100.1 101.9 96.7 100.2 153.7 105.8 

 II 107.9 118.8 110.1 110.2 99.9 102.1 97.0 100.4 147.7 105.4 

 I 107.6 117.0 108.8 110.8 100.9 103.0 97.8 101.3 139.0 105.2 

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

See footnotes following Table 6. June 7, 2016

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

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

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

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

Analysis.

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

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

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

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

between –1.6 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 2015. 

Table Footnotes 

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

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

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

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

(CPI-U). The trend from 1978-2015 is based on the Consumer Price Index research series (CPI-U-RS).

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

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

persons, and the current surplus of government enterprises.

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

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

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

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

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

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

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

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

adjustments.