Transmission of material in this release is embargoed until USDL 21-0157 

8:30 a.m. (ET) Thursday, February 4, 2021 

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

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

PRODUCTIVITY AND COSTS 

Fourth Quarter and Annual Averages 2020, Preliminary

Nonfarm business sector labor productivity decreased 4.8 percent in the fourth quarter of 2020, the 

U.S. Bureau of Labor Statistics reported today, as output increased 5.3 percent and hours worked 

increased 10.7 percent. (All quarterly percent changes in this release are seasonally adjusted annual 

rates, and show what the percent change would be if the quarterly rate continued for four quarters.) 

The fourth-quarter 2020 decline in productivity is the largest quarterly decline in the measure since a 

decline of 5.1 percent in the second quarter of 1981. From the fourth quarter of 2019 to the fourth 

quarter of 2020, nonfarm business productivity increased 2.5 percent, reflecting a 2.7-percent decline in 

output and a 5.0-percent decline in hours worked. (See chart 1 and table A1.)

Unit labor costs in the nonfarm business sector increased at an annual rate of 6.8 percent in the fourth 

quarter of 2020, the combined effect of a 1.7-percent increase in hourly compensation and a 4.8-percent 

decline in productivity. Nonfarm business unit labor costs increased 5.2 percent over the last four 

quarters. (See chart 2 and table A1.) 

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

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

them. 

Chart 1. Labor productivity, nonfarm business, 2016Q1 – 2020Q4

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2016 2017 2018 2019 2020

From previous quarter, annual rate

From same quarter a year ago

Percent change Percent change

Chart 2. Unit labor costs, nonfarm business, 2016Q1 – 2020Q4

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2016 2017 2018 2019 2020

From previous quarter, annual rate

From same quarter a year ago
-2-

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. The fourth 

quarter of 2020 is the second consecutive quarter with increases in both output and hours, following 

historic declines in these measures in the second quarter of 2020. Output and hours worked remain 2.7 

percent and 5.0 percent below their fourth-quarter 2019 levels, respectively. (See chart 3.)

Manufacturing sector labor productivity increased at a 3.0 percent annual rate in the fourth quarter of 

2020, as output increased 11.2 percent and hours worked increased 8.0 percent. Productivity increased 

2.1 percent from the same quarter a year ago. (See chart 4, and tables A1 and 3.) 

Unit labor costs in the total manufacturing sector decreased 2.4 percent in the fourth quarter of 2020, 

reflecting a 0.5-percent increase in hourly compensation and a 3.0-percent increase in productivity. Unit 

labor costs increased 6.5 percent from the same quarter a year ago. (See chart 5, and tables A1 and 3.) 

84

86

88

90

92

94

96

98

100

102

2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4

Output Hours

Chart 3. Output and Hours index series, nonfarm business, all persons, 2019 Q4 – 2020 Q4 

Index (2019 Q4=100)
-3-

The fourth quarter of 2020 is the second consecutive quarter with increases in both output and hours, 

following the historic declines in these measures in the second quarter of 2020. Output and hours 

worked remain 3.0 percent and 5.0 percent below their fourth-quarter 2019 levels, respectively. (See 

chart 6.) 

Durable goods manufacturing productivity increased 5.3 percent in the fourth quarter of 2020, reflecting 

a 12.5-percent increase in output and a 6.8-percent increase in hours. Nondurable goods manufacturing 

productivity was unchanged in the fourth quarter of 2020, as output and hours both increased 9.9 

percent. (See tables A1, 4, and 5.) 

Chart 4. Labor productivity, manufacturing, 2016Q1 – 2020Q4

-16.0

-12.0

-8.0

-4.0

0.0

4.0

8.0

12.0

16.0

20.0

24.0

28.0

32.0

36.0

40.0

44.0

48.0

2016 2017 2018 2019 2020

From previous quarter, annual rate

From same quarter a year ago

-16.0

-12.0

-8.0

-4.0

0.0

4.0

8.0

12.0

16.0

20.0

24.0

28.0

32.0

36.0

40.0

44.0

48.0

2016 2017 2018 2019 2020

From previous quarter, annual rate

From same quarter a year ago

Percent change Percent change

Chart 5. Unit labor costs, manufacturing, 2016Q1 – 2020Q4

84

86

88

90

92

94

96

98

100

102

2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4

Output Hours

Chart 6. Output and Hours index series, manufacturing, all persons, 2019 Q4 – 2020 Q4 

Index (2019 Q4=100)
-4-

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 8.) 

Revised measures 

Revised and previously published measures for the third quarter of 2020 are shown in tables A2 and B1 

and cover the following major sectors: nonfarm business, business, manufacturing, and nonfinancial 

corporations. 

In the third quarter of 2020, nonfarm business productivity was revised up 0.5 percentage point, to an 

increase of 5.1 percent, rather than increasing 4.6 percent as previously reported. (See table B1.) Unit 

labor costs in the nonfarm business sector decreased 7.0 percent in the third quarter, rather than 

decreasing 6.6 percent as previously reported. 

In the manufacturing sector, productivity in the third quarter of 2020 was revised up 0.3 percentage 

point, to an increase of 20.2 percent. Manufacturing unit labor costs decreased 12.4 percent, a 0.3-

percentage point downward revision from the previous estimate. 

In the nonfinancial corporate sector, productivity was revised up 0.7 percentage point in the third 

quarter of 2020, to an increase of 1.5 percent. Output and hours worked increased 34.3 percent and 32.3 

percent, respectively. (See table A2.) 

Annual averages

Table C1 presents annual average changes for the most recent 5 years for the nonfarm business sector 

and the total manufacturing sector. Nonfarm business sector productivity grew 2.6 percent in 2020, as 

output decreased 4.2 percent and hours worked decreased 6.6 percent. The 2.6-percent increase in 

nonfarm business labor productivity is the largest annual increase since 2010, when it increased 3.4 

percent. The decline in output (-4.2 percent) is the largest annual decline in the series, which begins in 

1947. The decline in hours (-6.6 percent) is the largest annual decline in this series since 2009, when the 

measure declined 7.2 percent. 

Unit labor costs in the nonfarm business sector increased 4.3 percent in 2020, reflecting increases of 7.0 

percent in hourly compensation and 2.6 percent in productivity. Real hourly compensation, which takes 

into account changes in consumer prices, increased 5.7 percent in 2020. This is the largest annual 

increase in real hourly compensation in the series, which begins in 1947. 

In the manufacturing sector, productivity declined 0.2 percent in 2020, reflecting a decrease in output 

of 6.5 percent and a decrease in hours of 6.4 percent. The decrease in output was the largest annual 

decline since a decline of 12.0 percent in 2009. The decline in hours was the largest annual decline since 

a decline of 12.9 percent in 2009. 

Manufacturing unit labor costs increased 7.4 percent in 2020. Manufacturing real hourly compensation 

increased 5.9 percent—the largest annual increase in the series, which begins in 1987. 

Quarterly and annual data, where available, for all sectors from 2018 to 2020 appear in tables 1-6. Full 

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

______________ 
-5-

The revised Productivity and Costs news release for fourth-quarter 2020 is scheduled to be 

released on Thursday, March 4, 2021 at 8:30 a.m. (ET). 

Upcoming Revisions 

Data in this release do not reflect the annual benchmark revision of the BLS Current Employment 

Statistics program data scheduled to be released February 5, 2021. This benchmark will be 

incorporated in our next release on March 4, 2021. 

Upcoming Methodology Change 

Beginning with the Productivity and Costs news release scheduled for March 4, 2021, BLS will 

extend methodology improvements made since release of first-quarter 2020 data to the remaining 

seasonally adjusted CPS series used by the major sector labor productivity program. Several prior 

years of hours worked data and related measures will be revised. 

Previously, BLS improved seasonal adjustment of CPS data on hours worked by the nonfarm selfemployed and all farm workers to account for extreme values in March and April due to the impact of 

the COVID-19 pandemic. Seasonal adjustment software was updated from X12ARIMA to 

X13ARIMA-SEATS from the U.S. Census Bureau. This same methodology change will be used for 

the remaining seasonally adjusted CPS series beginning with the revised fourth-quarter 2020 data.
-6- 

Table A1. Labor productivity growth and related measures - preliminary fourth-quarter 2020 

(percent change from previous quarter at annual rate and from same quarter a year ago) 

Sector Percent change from: 

Labor 

productivity Output 

Hours 

worked 

Hourly 

compensation 

Real hourly 

compensation 

Unit labor 

costs 

Nonfarm business Previous quarter -4.8 5.3 10.7 1.7 -0.6 6.8 

A year ago 2.5 -2.7 -5.0 7.8 6.5 5.2 

Business Previous quarter -5.4 5.3 11.3 1.1 -1.1 6.8 

A year ago 2.5 -2.6 -4.9 7.7 6.4 5.1 

Manufacturing Previous quarter 3.0 11.2 8.0 0.5 -1.7 -2.4 

A year ago 2.1 -3.0 -5.0 8.7 7.4 6.5 

Durable 

manufacturing 

Previous quarter 5.3 12.5 6.8 0.1 -2.1 -5.0 

A year ago 2.7 -3.6 -6.1 9.0 7.7 6.2 

Nondurable 

manufacturing 

Previous quarter 0.0 9.9 9.9 1.7 -0.5 1.7 

A year ago 0.8 -2.4 -3.1 8.5 7.2 7.7 

Table A2. Labor productivity growth and related measures - revised and previously published third-quarter 2020 

(percent change from previous quarter at annual rate) 

Sector 

Labor 

productivity Output 

Hours 

worked 

Hourly 

compensation 

Real hourly 

compensation 

Unit labor 

costs 

Nonfinancial 

corporate 

Revised 1.5 34.3 32.3 -2.9 -7.7 -4.4 

Previously published 0.8 33.3 32.3 -3.0 -7.8 -3.8 

Table B1. Labor productivity growth and related measures - revised and previously published third-quarter 2020 

(percent change from previous quarter at annual rate) 

Sector 

Labor 

productivity Output 

Hours 

worked 

Hourly 

compensation 

Real hourly 

compensation 

Unit labor 

costs 

Nonfarm business Revised 5.1 44.1 37.1 -2.2 -7.0 -7.0 

Previously published 4.6 43.4 37.1 -2.3 -7.1 -6.6 

Business Revised 6.5 44.2 35.5 -1.1 -6.0 -7.1 

Previously published 6.0 43.6 35.5 -1.2 -6.1 -6.8 

Manufacturing Revised 20.2 56.7 30.4 5.3 0.2 -12.4 

Previously published 19.9 56.2 30.3 5.3 0.2 -12.1 

Durable 

manufacturing 

Revised 48.1 101.3 36.0 7.5 2.2 -27.4 

Previously published 47.0 99.8 35.9 7.4 2.2 -26.9 

Nondurable 

manufacturing 

Revised 0.5 22.4 21.8 0.3 -4.7 -0.3 

Previously published 0.7 22.6 21.8 0.3 -4.7 -0.4 
-7- 

Table C1. Labor productivity growth and related measures - annual average changes: 2016-2020 

Sector Year Labor productivity Output 

Hours 

worked Hourly compensation 

Real hourly 

compensation 

Unit labor 

costs 

Nonfarm 

business 

2020 2.6 -4.2 -6.6 7.0 5.7 4.3 

2019 1.7 2.5 0.7 3.6 1.8 1.9 

2018 1.4 3.5 2.0 3.4 0.9 1.9 

2017 1.2 2.8 1.5 3.5 1.3 2.2 

2016 0.3 1.8 1.5 1.1 -0.2 0.7 

Manufacturing 2020 -0.2 -6.5 -6.4 7.2 5.9 7.4 

2019 0.1 0.0 -0.1 2.9 1.1 2.8 

2018 0.4 2.3 1.9 2.1 -0.3 1.7 

2017 -0.3 0.7 1.0 3.2 1.1 3.6 

2016 -0.2 -0.1 0.0 0.5 -0.8 0.7 
-8- 

TECHNICAL NOTES

Labor Hours 

Hours worked 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 worked using 

data from the National Compensation Survey (NCS) for 1996 forward and data from the BLS Hours at 

Work survey, conducted for this purpose, prior to 1990. Between 1990 and 1995, weekly paid hours are 

adjusted to hours at work using a combination of NCS and Hours at Work survey data. 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 appropriate 

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. 

Detailed hours data are presented in the table “Hours Worked in Total U.S. Economy and Subsectors” 

on the BLS website (https://www.bls.gov/lpc/special_requests/us_total_hrs_emp.xlsx). 

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 hours 

worked. Business output accounted for about 78 percent of the value of GDP in 2019. Nonfarm 

business, which excludes farming, accounted for about 77 percent of GDP in 2019. 

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 Index 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 2019. 
-9- 

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 employees in domestic 

industries 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 

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 2012=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 productivity@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: 202-691-5200; Federal Relay Service number: 1-800-877-8339. 
-10- 

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) 

2020 ANNUAL 2.6 -4.1 -6.5 6.9 5.6 4.2 -4.1 0.6 

2020 IV -5.4 5.3 11.3 1.1 -1.1 6.8 -4.9 1.8 

 III 6.5 r 44.2 r 35.5 -1.1 r -6.0 r -7.1 r 24.3 r 4.6 r 

 II 9.6 -36.8 -42.4 23.5 28.1 12.7 -24.3 -4.3 

 I 0.0 -6.0 -6.0 9.0 7.7 9.0 -9.2 0.8 

2019 ANNUAL 1.7 2.4 0.7 3.6 1.8 1.9 0.9 1.5 

2019 IV 1.4 2.8 1.4 3.1 0.7 1.7 0.6 1.2 

 III 0.2 2.9 2.7 -0.1 -1.9 -0.3 2.9 1.1 

 II 2.2 1.3 -0.9 1.7 -1.3 -0.5 7.8 3.0 

 I 3.6 3.6 0.0 8.8 7.9 5.0 -5.4 0.4 

2018 ANNUAL 1.6 3.5 1.9 3.4 0.9 1.8 2.7 2.2 

2018 IV 0.7 1.5 0.8 1.5 0.3 0.9 2.2 1.4 

 III 0.1 2.3 2.1 4.7 2.5 4.5 -3.0 1.1 

 II 1.7 3.0 1.3 1.7 -0.5 -0.1 8.4 3.6 

 I 2.9 4.5 1.6 2.7 -0.6 -0.2 5.0 2.0 

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

 Percent change from corresponding quarter of previous year 

2020 ANNUAL 2.6 -4.1 -6.5 6.9 5.6 4.2 -4.1 0.6 

2020 IV 2.5 -2.6 -4.9 7.7 6.4 5.1 -5.1 0.7 

 III 4.3 r -3.1 r -7.1 8.2 6.9 3.8 r -3.7 r 0.5 

 II 2.7 -11.0 -13.3 8.5 8.0 5.7 -8.1 -0.3 

 I 0.9 0.2 -0.8 3.3 1.2 2.4 0.3 1.5 

2019 ANNUAL 1.7 2.4 0.7 3.6 1.8 1.9 0.9 1.5 

2019 IV 1.8 2.6 0.8 3.3 1.3 1.4 1.4 1.4 

 III 1.7 2.3 0.6 2.9 1.1 1.2 1.8 1.5 

 II 1.7 2.2 0.5 4.1 2.3 2.4 0.2 1.5 

 I 1.5 2.6 1.0 4.1 2.5 2.6 0.4 1.6 

2018 ANNUAL 1.6 3.5 1.9 3.4 0.9 1.8 2.7 2.2 

2018 IV 1.3 2.8 1.4 2.6 0.4 1.3 3.1 2.0 

 III 1.3 3.6 2.2 3.4 0.7 2.1 2.7 2.3 

 II 2.0 3.9 1.9 3.7 1.0 1.6 3.7 2.5 

 I 1.6 3.7 2.1 3.9 1.6 2.3 1.3 1.9 

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

 Indexes 2012=100 

2020 ANNUAL 111.0 116.6 105.0 128.5 113.8 115.7 104.6 110.9 

2020 IV 111.4 119.6 107.4 130.3 114.4 117.0 104.5 111.5 

 III 112.9 r 118.1 r 104.5 r 130.0 r 114.8 r 115.1 r 105.8 r 111.0 r 

 II 111.2 107.7 96.9 130.3 116.6 117.2 100.2 109.8 

 I 108.7 120.8 111.2 123.6 109.6 113.8 107.4 111.0 

2019 ANNUAL 108.2 121.6 112.3 120.2 107.8 111.1 109.0 110.2 

2019 IV 108.7 122.7 113.0 121.0 107.6 111.4 110.1 110.8 

 III 108.3 121.9 112.6 120.1 107.4 110.9 109.9 110.4 

 II 108.3 121.0 111.8 120.1 107.9 111.0 109.1 110.2 

 I 107.7 120.6 112.1 119.6 108.3 111.1 107.1 109.4 

2018 ANNUAL 106.4 118.7 111.5 116.0 105.9 109.0 108.0 108.6 

2018 IV 106.7 119.6 112.1 117.1 106.2 109.8 108.6 109.3 

 III 106.5 119.1 111.8 116.7 106.2 109.5 108.0 108.9 

 II 106.5 118.5 111.3 115.4 105.5 108.3 108.8 108.5 

 I 106.0 117.6 110.9 114.9 105.6 108.3 106.7 107.6 

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

See footnotes following Table 6. February 4, 2021 

r=revised Source: Bureau of Labor Statistics 

 
-11- 

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) 

2020 ANNUAL 2.6 -4.2 -6.6 7.0 5.7 4.3 -4.1 0.7 

2020 IV -4.8 5.3 10.7 1.7 -0.6 6.8 -6.3 1.2 

 III 5.1 r 44.1 r 37.1 -2.2 r -7.0 r -7.0 r 23.1 r 4.3 r 

 II 10.6 -36.8 -42.9 24.3 28.8 12.3 -22.7 -3.6 

 I -0.3 -6.4 -6.1 9.2 7.9 9.6 -9.8 0.8 

2019 ANNUAL 1.7 2.5 0.7 3.6 1.8 1.9 1.1 1.5 

2019 IV 1.6 2.8 1.2 3.3 0.9 1.7 0.6 1.2 

 III 0.3 2.9 2.6 -0.2 -2.0 -0.4 2.9 1.0 

 II 2.0 1.2 -0.7 1.4 -1.6 -0.6 8.0 3.0 

 I 3.7 3.8 0.1 8.7 7.7 4.8 -5.2 0.4 

2018 ANNUAL 1.4 3.5 2.0 3.4 0.9 1.9 2.7 2.2 

2018 IV 0.8 1.4 0.7 1.8 0.5 1.0 1.9 1.4 

 III 0.5 2.3 1.8 5.1 2.9 4.5 -2.4 1.4 

 II 1.1 3.0 1.8 1.3 -0.9 0.2 8.3 3.6 

 I 2.3 4.3 2.0 2.2 -1.0 0.0 4.9 2.1 

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

 Percent change from corresponding quarter of previous year 

2020 ANNUAL 2.6 -4.2 -6.6 7.0 5.7 4.3 -4.1 0.7 

2020 IV 2.5 -2.7 -5.0 7.8 6.5 5.2 -5.3 0.6 

 III 4.2 r -3.2 r -7.1 8.2 6.9 r 3.9 r -3.6 0.6 r 

 II 2.9 -11.1 -13.6 8.8 8.3 5.7 -7.8 -0.2 

 I 0.9 0.1 -0.8 3.4 1.2 2.5 0.2 1.5 

2019 ANNUAL 1.7 2.5 0.7 3.6 1.8 1.9 1.1 1.5 

2019 IV 1.9 2.7 0.8 3.3 1.2 1.4 1.4 1.4 

 III 1.7 2.3 0.6 2.9 1.1 1.2 1.8 1.4 

 II 1.7 2.2 0.4 4.2 2.3 2.4 0.5 1.6 

 I 1.5 2.6 1.1 4.2 2.5 2.6 0.5 1.7 

2018 ANNUAL 1.4 3.5 2.0 3.4 0.9 1.9 2.7 2.2 

2018 IV 1.2 2.7 1.6 2.6 0.4 1.4 3.1 2.1 

 III 1.3 3.6 2.2 3.5 0.8 2.2 2.7 2.4 

 II 1.8 3.9 2.1 3.5 0.8 1.7 3.7 2.6 

 I 1.5 3.7 2.2 3.8 1.6 2.3 1.4 1.9 

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

 Indexes 2012=100 

2020 ANNUAL 110.7 116.2 105.0 128.7 114.0 116.3 105.5 111.6 

2020 IV 111.1 119.2 107.3 130.6 114.7 117.6 105.1 112.1 

 III 112.5 r 117.7 r 104.6 r 130.1 r 114.8 r 115.6 r 106.8 r 111.8 r 

 II 111.1 107.4 96.7 130.8 116.9 117.7 101.4 110.6 

 I 108.3 120.5 111.2 123.9 109.8 114.4 108.2 111.7 

2019 ANNUAL 107.9 121.3 112.4 120.4 107.9 111.5 110.0 110.8 

2019 IV 108.4 122.5 113.0 121.2 107.7 111.8 111.0 111.4 

 III 108.0 121.6 112.7 120.2 107.5 111.3 110.8 111.1 

 II 107.9 120.8 111.9 120.2 108.0 111.4 110.1 110.8 

 I 107.4 120.4 112.1 119.8 108.4 111.6 108.0 110.0 

2018 ANNUAL 106.1 118.4 111.6 116.2 106.0 109.5 108.8 109.2 

2018 IV 106.4 119.3 112.1 117.3 106.4 110.3 109.4 109.9 

 III 106.2 118.9 111.9 116.8 106.3 110.0 108.9 109.5 

 II 106.1 118.2 111.4 115.4 105.5 108.8 109.6 109.1 

 I 105.8 117.3 110.9 115.0 105.8 108.8 107.4 108.2 

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

See footnotes following Table 6. February 4, 2021 

r=revised Source: Bureau of Labor Statistics 

 
-12- 

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) 

2020 ANNUAL -0.2 -6.5 -6.4 7.2 5.9 7.4 

2020 IV 3.0 11.2 8.0 0.5 -1.7 -2.4 

 III 20.2 r 56.7 r 30.4 r 5.3 0.2 -12.4 r 

 II -13.7 r -46.4 r -37.8 24.5 29.0 44.3 r 

 I 1.6 -5.5 -7.0 6.0 4.7 4.3 

2019 ANNUAL 0.1 0.0 -0.1 2.9 1.1 2.8 

2019 IV -0.7 -0.2 0.5 5.2 2.8 6.0 

 III -0.5 0.9 1.4 -1.9 -3.7 -1.4 

 II -2.3 -3.1 -0.9 1.4 -1.6 3.8 

 I 1.3 -1.7 -3.1 6.9 6.0 5.5 

2018 ANNUAL 0.4 2.3 1.9 2.1 -0.3 1.7 

2018 IV 0.9 1.6 0.6 3.4 2.1 2.4 

 III 0.3 4.0 3.7 3.6 1.5 3.3 

 II 1.3 2.6 1.3 -3.4 -5.5 -4.7 

 I 0.0 1.9 1.9 2.5 -0.8 2.5 

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

 Percent change from corresponding quarter of previous year 

2020 ANNUAL -0.2 -6.5 -6.4 7.2 5.9 7.4 

2020 IV 2.1 -3.0 -5.0 8.7 7.4 6.5 

 III 1.1 r -5.6 r -6.7 10.0 8.6 8.7 r 

 II -3.5 r -15.5 -12.4 8.0 7.5 12.0 r 

 I -0.5 -2.0 -1.5 2.6 0.5 3.1 

2019 ANNUAL 0.1 0.0 -0.1 2.9 1.1 2.8 

2019 IV -0.6 -1.1 -0.5 2.9 0.8 3.4 

 III -0.1 -0.6 -0.5 2.4 0.6 2.5 

 II 0.1 0.1 0.1 3.8 2.0 3.7 

 I 1.0 1.6 0.6 2.6 0.9 1.6 

2018 ANNUAL 0.4 2.3 1.9 2.1 -0.3 1.7 

2018 IV 0.6 2.5 1.9 1.5 -0.7 0.8 

 III 1.2 3.4 2.2 1.9 -0.8 0.6 

 II -0.2 1.7 2.0 1.6 -1.1 1.8 

 I -0.1 1.5 1.6 3.6 1.4 3.7 

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

 Indexes 2012=100 

2020 ANNUAL 98.6 98.2 99.6 123.9 109.7 125.6 

2020 IV 100.5 101.7 101.3 126.6 111.2 126.0 

 III 99.7 r 99.1 r 99.3 r 126.4 r 111.6 r 126.8 r 

 II 95.2 r 88.5 r 93.0 124.8 111.6 131.0 r 

 I 98.8 103.5 104.7 118.1 104.7 119.5 

2019 ANNUAL 98.8 105.1 106.4 115.5 103.5 117.0 

2019 IV 98.4 104.9 106.6 116.4 103.5 118.3 

 III 98.6 105.0 106.5 115.0 102.8 116.6 

 II 98.7 104.7 106.1 115.5 103.8 117.0 

 I 99.3 105.6 106.3 115.1 104.2 115.9 

2018 ANNUAL 98.7 105.0 106.4 112.2 102.4 113.8 

2018 IV 99.0 106.0 107.1 113.2 102.7 114.4 

 III 98.7 105.6 107.0 112.3 102.1 113.7 

 II 98.7 104.6 106.0 111.3 101.8 112.8 

 I 98.3 103.9 105.7 112.2 103.2 114.2 

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

See footnotes following Table 6. February 4, 2021 

r=revised Source: Bureau of Labor Statistics 
-13- 

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) 

2020 ANNUAL -1.3 -8.7 -7.5 7.6 6.3 8.9 

2020 IV 5.3 12.5 6.8 0.1 -2.1 -5.0 

 III 48.1 r 101.3 r 36.0 r 7.5 r 2.2 -27.4 r 

 II -26.8 r -57.7 r -42.3 25.6 30.2 71.6 r 

 I -2.6 -9.8 -7.4 4.5 3.2 7.3 

2019 ANNUAL 0.6 0.8 0.2 2.4 0.5 1.7 

2019 IV -1.1 -1.5 -0.4 8.0 5.5 9.2 

 III 0.4 1.5 1.1 -3.2 -4.9 -3.6 

 II -0.7 -2.3 -1.6 0.4 -2.5 1.1 

 I 0.3 -2.7 -3.0 6.9 5.9 6.6 

2018 ANNUAL 1.2 3.5 2.2 2.7 0.2 1.4 

2018 IV 1.8 4.9 3.1 1.5 0.3 -0.3 

 III 2.5 6.2 3.6 3.3 1.2 0.8 

 II 0.7 2.7 2.0 -2.8 -4.9 -3.5 

 I 1.4 4.6 3.1 2.7 -0.6 1.3 

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

 Percent change from corresponding quarter of previous year 

2020 ANNUAL -1.3 -8.7 -7.5 7.6 6.3 8.9 

2020 IV 2.7 -3.6 -6.1 9.0 7.7 6.2 

 III 1.1 r -6.8 r -7.7 r 11.1 9.7 9.9 r 

 II -8.3 -21.4 r -14.3 8.2 7.8 18.0 r 

 I -1.0 -3.1 -2.1 2.4 0.2 3.4 

2019 ANNUAL 0.6 0.8 0.2 2.4 0.5 1.7 

2019 IV -0.3 -1.3 -1.0 2.9 0.9 3.2 

 III 0.5 0.3 -0.1 1.4 -0.4 0.9 

 II 1.0 1.4 0.5 3.0 1.2 2.0 

 I 1.3 2.7 1.4 2.2 0.5 0.8 

2018 ANNUAL 1.2 3.5 2.2 2.7 0.2 1.4 

2018 IV 1.6 4.6 2.9 1.1 -1.0 -0.4 

 III 2.1 4.6 2.5 2.4 -0.2 0.3 

 II 0.3 2.5 2.2 2.2 -0.4 1.9 

 I 0.9 2.1 1.2 4.9 2.6 4.0 

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

 Indexes 2012=100 

2020 ANNUAL 99.4 97.9 98.6 124.8 110.5 125.6 

2020 IV 103.1 103.2 100.1 127.8 112.3 124.0 

 III 101.8 r 100.2 r 98.4 r 127.8 r 112.9 r 125.6 r 

 II 92.3 r 84.1 r 91.1 125.5 112.3 136.0 r 

 I 99.8 104.3 104.5 118.6 105.1 118.9 

2019 ANNUAL 100.6 107.3 106.6 116.0 104.0 115.3 

2019 IV 100.4 107.0 106.6 117.3 104.3 116.8 

 III 100.7 107.4 106.7 115.1 102.9 114.2 

 II 100.6 107.0 106.4 116.0 104.2 115.3 

 I 100.8 107.7 106.8 115.9 104.8 115.0 

2018 ANNUAL 100.0 106.5 106.4 113.4 103.5 113.3 

2018 IV 100.7 108.4 107.6 113.9 103.3 113.2 

 III 100.3 107.1 106.8 113.5 103.3 113.2 

 II 99.6 105.5 105.9 112.6 103.0 113.0 

 I 99.5 104.8 105.4 113.4 104.3 114.0 

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

See footnotes following Table 6. February 4, 2021 

r=revised Source: Bureau of Labor Statistics 
-14- 

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) 

2020 ANNUAL 0.2 -4.2 -4.4 7.0 5.7 6.7 

2020 IV 0.0 9.9 9.9 1.7 -0.5 1.7 

 III 0.5 r 22.4 r 21.8 0.3 -4.7 -0.3 r 

 II -3.3 r -32.1 r -29.8 24.7 29.2 29.0 r 

 I 6.1 -0.7 -6.4 9.0 7.7 2.7 

2019 ANNUAL -0.4 -0.9 -0.5 3.9 2.1 4.3 

2019 IV -0.8 1.2 2.1 0.2 -2.1 1.1 

 III -1.8 0.2 2.0 0.7 -1.1 2.4 

 II -4.4 -4.0 0.5 3.7 0.6 8.5 

 I 2.5 -0.7 -3.2 7.0 6.0 4.3 

2018 ANNUAL -0.6 0.8 1.4 1.0 -1.4 1.6 

2018 IV 1.5 -1.9 -3.3 6.4 5.1 4.8 

 III -2.2 1.6 3.9 4.3 2.2 6.7 

 II 2.1 2.3 0.1 -4.8 -6.8 -6.8 

 I -1.2 -1.2 0.0 1.7 -1.5 3.0 

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

 Percent change from corresponding quarter of previous year 

2020 ANNUAL 0.2 -4.2 -4.4 7.0 5.7 6.7 

2020 IV 0.8 -2.4 -3.1 8.5 7.2 7.7 

 III 0.6 r -4.4 r -4.9 8.1 6.8 7.5 r 

 II 0.0 r -9.1 r -9.0 8.2 7.7 8.2 r 

 I -0.3 -0.8 -0.5 3.3 1.2 3.6 

2019 ANNUAL -0.4 -0.9 -0.5 3.9 2.1 4.3 

2019 IV -1.2 -0.8 0.3 2.8 0.8 4.0 

 III -0.6 -1.6 -1.0 4.4 2.6 5.0 

 II -0.7 -1.3 -0.6 5.3 3.4 6.1 

 I 1.0 0.3 -0.7 3.1 1.5 2.1 

2018 ANNUAL -0.6 0.8 1.4 1.0 -1.4 1.6 

2018 IV 0.0 0.2 0.1 1.8 -0.4 1.8 

 III 0.2 1.8 1.6 0.7 -1.9 0.5 

 II -1.0 0.6 1.6 0.3 -2.4 1.3 

 I -1.7 0.6 2.3 1.2 -1.0 2.9 

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

 Indexes 2012=100 

2020 ANNUAL 98.1 99.3 101.3 122.4 108.4 124.8 

2020 IV 97.9 101.1 103.3 124.6 109.4 127.2 

 III 97.9 r 98.8 r 100.9 124.0 109.5 126.7 r 

 II 97.8 r 93.9 r 96.0 124.0 110.8 126.7 r 

 I 98.6 103.5 104.9 117.3 104.0 118.9 

2019 ANNUAL 97.8 103.6 106.0 114.4 102.6 117.0 

2019 IV 97.2 103.7 106.7 114.8 102.0 118.1 

 III 97.4 103.3 106.1 114.7 102.6 117.8 

 II 97.8 103.3 105.6 114.6 102.9 117.1 

 I 98.9 104.3 105.5 113.5 102.7 114.8 

2018 ANNUAL 98.2 104.5 106.5 110.1 100.5 112.1 

2018 IV 98.3 104.5 106.3 111.6 101.2 113.5 

 III 98.0 105.0 107.2 109.9 100.0 112.2 

 II 98.5 104.6 106.2 108.8 99.5 110.4 

 I 98.0 104.0 106.2 110.1 101.2 112.4 

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

See footnotes following Table 6. February 4, 2021 

r=revised Source: Bureau of Labor Statistics 
-15- 

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) 

2020 III 1.5 r 34.3 r 32.3 -2.9 r -7.7 r -4.4 r -26.2 r -10.6 r 222.7 r 4.8 

 II 4.8 -38.3 -41.1 30.7 35.4 24.7 -49.2 -4.0 -6.7 -4.3 

 I 0.2 -4.0 -4.2 8.1 6.8 7.9 10.3 8.7 -44.1 0.6 

2019 ANNUAL 0.6 1.6 0.9 3.7 1.9 3.1 1.9 2.7 -3.3 1.9 

2019 IV 1.3 2.6 1.2 2.5 0.1 1.2 -2.3 0.1 12.4 1.5 

 III -0.8 -0.1 0.7 0.0 -1.7 0.9 6.6 2.6 -5.3 1.6 

 II 1.0 1.0 0.1 1.3 -1.7 0.3 1.5 0.7 16.1 2.4 

 I 1.4 2.9 1.5 11.1 10.1 9.5 3.3 7.5 -30.8 1.7 

2018 ANNUAL 0.6 2.6 1.9 3.5 1.0 2.8 -1.0 1.6 6.2 2.2 

2018 IV -0.3 0.2 0.5 1.3 0.0 1.7 2.4 1.9 2.2 1.9 

 III 2.5 3.7 1.1 3.2 1.0 0.6 -1.9 -0.2 15.1 1.7 

 II -2.2 0.2 2.5 0.1 -2.0 2.4 -0.2 1.6 15.2 3.2 

 I 4.7 6.7 1.8 8.6 5.1 3.7 -4.2 1.1 8.0 1.9 

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

 Percent change from corresponding quarter of previous year 

2020 III 1.9 r -5.0 r -6.8 8.9 7.5 6.8 r -20.3 r -1.7 17.3 r 0.6 

 II 1.3 -11.8 -12.9 9.7 9.2 8.3 -12.6 1.7 -13.7 -0.2 

 I 0.4 -0.2 -0.6 2.9 0.8 2.5 3.9 3.0 -8.9 1.5 

2019 ANNUAL 0.6 1.6 0.9 3.7 1.9 3.1 1.9 2.7 -3.3 1.9 

2019 IV 0.7 1.6 0.9 3.6 1.6 2.9 2.2 2.7 -3.9 1.8 

 III 0.3 1.0 0.7 3.3 1.6 3.0 3.4 3.1 -6.1 1.9 

 II 1.1 1.9 0.8 4.1 2.3 2.9 1.3 2.4 -1.4 1.9 

 I 0.3 1.7 1.4 3.8 2.2 3.5 0.9 2.7 -1.6 2.1 

2018 ANNUAL 0.6 2.6 1.9 3.5 1.0 2.8 -1.0 1.6 6.2 2.2 

2018 IV 1.1 2.6 1.5 3.2 1.0 2.1 -1.0 1.1 10.0 2.2 

 III 1.0 3.0 2.0 3.6 0.9 2.6 -1.8 1.2 10.1 2.3 

 II -0.2 1.9 2.1 3.5 0.8 3.7 -0.8 2.2 3.2 2.4 

 I 0.7 2.9 2.2 3.7 1.4 3.0 -0.3 1.9 1.4 1.9 

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

 Indexes 2012=100 

2020 III 104.5 r 110.8 r 106.0 130.8 r 115.5 r 125.2 r 86.3 r 112.3 r 111.3 r 112.1 r 

 II 104.1 102.9 98.9 131.8 117.8 126.6 93.1 115.5 83.1 110.8 

 I 102.9 116.1 112.9 123.3 109.2 119.8 110.3 116.7 84.5 112.1 

2019 ANNUAL 102.6 116.7 113.7 120.2 107.8 117.2 107.1 113.8 95.4 111.2 

2019 IV 102.8 117.3 114.1 120.9 107.4 117.6 107.6 114.3 97.8 111.9 

 III 102.5 116.6 113.7 120.1 107.4 117.2 108.2 114.2 95.0 111.5 

 II 102.7 116.6 113.6 120.1 107.9 117.0 106.5 113.5 96.3 111.0 

 I 102.4 116.3 113.5 119.7 108.4 116.9 106.1 113.3 92.7 110.4 

2018 ANNUAL 102.0 114.9 112.7 115.9 105.8 113.7 105.1 110.8 98.7 109.1 

2018 IV 102.1 115.5 113.1 116.6 105.8 114.3 105.3 111.3 101.7 109.9 

 III 102.2 115.4 113.0 116.3 105.8 113.8 104.7 110.8 101.1 109.4 

 II 101.5 114.4 112.7 115.4 105.5 113.6 105.2 110.8 97.6 108.9 

 I 102.1 114.3 112.0 115.3 106.0 112.9 105.2 110.4 94.2 108.1 

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

See footnotes following Table 6. February 4, 2021 

r=revised Source: Bureau of Labor Statistics 
-16- 

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 -1.4 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 third 

quarter of 2020. 

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 1978-2019 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 

adjustment.