Historical, technical USDL 08-0687 

 information: (202) 691-5618 FOR RELEASE: 10:00 a.m. EDT 

Media contact: (202) 691-5902 Wednesday, May 21, 2008 

Internet: http://www.bls.gov/lpc/home.htm 

PRODUCTIVITY AND COSTS BY INDUSTRY: 

SELECTED SERVICE-PROVIDING AND MINING INDUSTRIES, 2006 

 Labor productivity, defined as output per hour, rose in nearly two-thirds of the 

measured service-providing and mining industries in 2006, about the same proportion as 

in 2005. Output rose in 66 percent of the industries, while labor hours increased in 59 

percent. Unit labor costs fell in approximately 20 percent of the industries in 2006. 

Over the period 1987 to 2006, labor productivity increased in 86 percent of the 

industries, significantly more than in 2006. Output grew in 91 percent, while hours 

increased in 66 percent of the industries. Unit labor costs fell in one quarter of the 

industries over the longer period. 

Productivity data for industries in manufacturing, retail trade, wholesale trade, 

and food services and drinking places are published in separate releases that can be 

accessed online at http://www.bls.gov/schedule/archives/prin_nr.htm. 

2005-2006 change 

In 2006, output per hour increased in 27 of the 40 detailed service-providing 

industries and in one of the 4 detailed mining industries studied. (See table 1.) Three 

industries recorded double-digit productivity growth: video tape and disc rental (NAICS 

53223), 22.4 percent; wireless telecommunications carriers (NAICS 5172), 14.1 percent; 

and truck, trailer, and RV rental and leasing (NAICS 53212), 11.8 percent. 

Productivity fell the most in amusement and theme parks (NAICS 71311), 11.1 

percent, and in refrigerated warehousing and storage (NAICS 49312), 9.2 percent. Labor 

productivity fell 9.1 percent in the mining sector (NAICS 21) and 7.1 percent in coal 

mining (NAICS 2121). (Results for the mining sector as a whole are not consistent with 

changes in the detailed mining industries shown in table 1, because BLS does not publish 

measures for every detailed mining industry.) 
2

Chart 1 shows the 2006 productivity changes in the twenty largest serviceproviding and mining industries studied. 

Chart 1. Percent change in output per hour in the largest (by employment) 

service-providing and mining industries, 2005-2006

14.1

8.6

6.1

5.8

5.3

5.1

3.0

2.8

1.9

0.9

0.8

0.7

0.1

-0.8

-0.8

-2.8

-3.3

-4.8

-5.8

-1.4

-8.0 -4.0 0.0 4.0 8.0 12.0 16.0

Wireless telecommunications carriers

Radio and television broadcasting

Employment placement agencies

Wired telecommunications carriers

Commercial banking

Air transportation

Newspaper, periodical, book, and directory publishers

Couriers and messengers

Software publishers

Power generation and supply

Automotive repair and maintenance

Engineering services

Postal service

General freight trucking, long-distance

Drycleaning and laundry services

Architectural services

Traveler accommodation

General warehousing and storage

Janitorial services

Hair, nail, and skin care services

Percent Change

Unit labor costs, which reflect hourly compensation and productivity, rose in 

more than three-fourths of the service-providing industries in 2006, and in all of the 

mining industries. The biggest increases in unit labor costs occurred in mining, led by a 

19.2 percent increase in oil and gas extraction (NAICS 211). Among the serviceproviding industries, the biggest increase occurred in hair, nail, and skin care services 

(NAICS 81211), 10.0 percent. 

Several service-providing industries reduced their unit labor costs in 2006. 

Wireless telecommunications carriers (NAICS 5172) and video tape and disc rental 

(NAICS 53223) recorded unit labor cost reductions of 19.8 and 8.2 percent, respectively. 

These were the two industries where productivity increased the most. 

Long-term trends 

Between 1987 and 2006, labor productivity increased in 34 of the 40 detailed 

service-providing industries and in all of the covered mining industries. Software 

publishers (NAICS 5112) recorded the greatest productivity growth over the period, 16.2 

percent per year on average, followed by wireless telecommunications carriers (NAICS 

5172), with growth of 9.7 percent. 
3

As shown in Chart 2, labor productivity declined in more of the measured serviceproviding and mining industries in 2006 than over the longer-term period. 

Chart 2. Distribution of annual percent change in output per hour, 

service-providing and mining industries, 1987-2006 and 2005-2006

0

2

4

6

8

10

12

14

16

18

20

-10 or less

-9.9 to -8.0

-7.9 to -6.0

-5.9 to -4.0

-3.9 to -2.0

-1.9 to -0.1

0.0 to 1.9

2.0 to 3.9

4.0 to 5.9

6.0 to 7.9

8.0 to 9.9

10.0 or more

Percent Change

Note: For NAICS industries 49311 and 49312, average annual percent changes are for 1992-2006. 

 For NAICS industries 56131, 621511, and 621512, average annual percent changes are for 1994-2006.

Number of Industries

2005 - 2006

1987 - 2006

Unit labor costs increased in three-quarters of the detailed service-providing 

industries and in all but one mining industry from 1987 to 2006. Unit labor costs grew 

most rapidly in oil and gas extraction (NAICS 211), 5.8 percent per year on average. The 

most rapid declines in unit labor costs occurred in the two industries with the fastest 

productivity growth, software publishers (NAICS 5112) and wireless telecommunications 

carriers (NAICS 5172), 9.4 and 6.4 percent, respectively. 

New Industries 

Productivity and cost measures for three new industries are presented here for the 

first time: warehousing and storage (NAICS 493), general warehousing and storage 

(NAICS 49311), and refrigerated warehousing and storage (NAICS 49312). Measures 

for these new industries were constructed using standard BLS methods as described in 

the Technical Note. Output measures for the warehousing and storage industries are 

based on detailed annual receipts data collected by the U.S. Bureau of the Census, 

deflated with BLS producer price indexes (PPIs). The labor hours measures reflect data 

from the BLS Current Employment Statistics (CES) survey and the Current Population 

Survey (CPS). The labor productivity measures for these industries begin in 1992. 
4

Revisions 

The measures in this news release incorporate current data from the Census 

Bureau’s 2006 Service Annual Survey and other sources. Measures in this release 

replace the mining and service industry series published in the news release Productivity 

and Costs by Industry: Selected Service-Providing and Mining Industries, 2005 (released 

June 8, 2007), and in table 50 of the Monthly Labor Review. All of the measures for 

2006 in this release are preliminary and subject to revision. 

The industries included in this release are classified according to the 2002 

NAICS. Industry productivity measures will be classified according to the 2007 NAICS 

in 2009, with the publication of data for 2007. 

Additional Information 

Industry productivity and related indexes and rates of change can be accessed 

electronically by visiting the Labor Productivity and Costs web site at 

http://www.bls.gov/lpc/home.htm. Data on industry employment, hours, labor 

compensation, value of production, and the implicit price deflator for output for these 

industries are available upon request by calling the Division of Industry Productivity 

Studies (202-691-5618) or by sending a request by e-mail to dipsweb@bls.gov. While the 

index numbers and rates of change reported by BLS in this news release are rounded to 

one decimal place, all industry productivity percent changes are calculated using index 

numbers to three decimal places. 

Material in this report is in the public domain and, with appropriate credit, may be 

used without permission. Information in this report will be made available to sensoryimpaired individuals upon request. Voice phone: 202-691-5618; TDD message referral 

phone number: 1-800-877-8339. 
5

Technical Note 

Labor Productivity: The industry labor productivity 

measures describe the relationship between industry 

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 the labor productivity measures relate output 

to hours of employees or all persons in an industry, 

they do not measure the specific contribution of labor 

or any other factor of production. Rather, they reflect 

the joint effects of many influences, including changes 

in technology; capital investment; utilization of 

capacity, energy, and materials; the use of purchased 

services inputs, including contract employment 

services; the organization of production; managerial 

skill; and the characteristics and effort of the 

workforce. 

Long-term productivity trends tend to be more 

reliable indicators of the performance of an industry 

than are year-to-year changes. The annual changes in 

an industry’s output and use of labor may reflect 

cyclical changes in the economy as well as long-term 

trends. 

Output: Industry output is measured as an annualweighted index of the changes in the various products 

or services (in real terms) provided for sale outside the 

industry. Real industry output is usually derived by 

deflating nominal sales or values of production using 

BLS price indexes, but for some industries it is 

measured by physical quantities of output. 

Industry output measures are constructed 

primarily using data from the economic censuses and 

annual surveys of the U.S. Census Bureau, U.S. 

Department of Commerce, together with information 

on price changes primarily from BLS. Output 

measures for some mining and utilities industries are 

based on physical quantity data from the Energy 

Information Administration, U.S. Department of 

Energy, while output measures for some transportation 

industries are based on physical quantity data from the 

Bureau of Transportation Statistics, U.S. Department 

of Transportation. Other data sources for some 

industries include the U.S. Geological Survey, U.S. 

Department of the Interior; the U.S. Postal Service; the 

Federal Deposit Insurance Corporation; and the Postal 

Rate Commission. 

Labor Hours: The primary source of industry 

employment and hours data is the BLS Current 

Employment Statistics (CES) survey. The CES 

provides monthly data on the number of total and 

nonsupervisory worker jobs held by wage and salary 

workers in nonfarm establishments, as well as data on 

the average weekly hours of nonsupervisory workers 

in those establishments. CES data are supplemented or 

further disaggregated for some industries using data 

from the BLS Quarterly Census of Employment and 

Wages (QCEW), the Bureau of the Census, or other 

sources. Data from the Current Population Survey 

(CPS) are also used to supplement the CES data. The 

industry productivity program estimates the average 

weekly hours of supervisory workers for each industry 

using data from the CPS together with the CES data. 

Data from the CPS are also used to estimate the 

employment and hours of self-employed and unpaid 

family workers in each industry. Other sources of 

employment and hours data for some service industries 

include the American Association of Railroads, the 

U.S. Department of Transportation, and the U.S. 

Postal Service. Hours of all workers in an industry are 

treated as homogeneous and are directly aggregated. 

Unit Labor Costs: Unit labor costs represent the cost 

of labor input required to produce one unit of output. 

The unit labor cost indexes are computed by dividing 

an index of industry labor compensation by an index 

of real industry output. Unit labor costs also describe 

the relationship between compensation per hour and 

real output per hour (labor productivity). Increases in 

hourly compensation increase unit labor costs; 

increases in labor productivity offset compensation 

increases and lower unit labor costs. 

Compensation, defined as payroll plus 

supplemental payments, is a measure of the cost to the 

employer of securing the services of labor. Payroll 

includes salaries, wages, commissions, dismissal pay, 

bonuses, vacation and sick leave pay, and 

compensation in kind. Supplemental payments 

include legally required expenditures and payments for 

voluntary programs. The legally required portion 

consists primarily of Federal old age and survivors’ 

insurance, unemployment compensation, and workers’ 

compensation. Payments for voluntary programs 

include all programs not specifically required by 

legislation, such as the employer portion of private 

health insurance and pension plans. 
Table 1. Percent change in output per hour, output, hours, compensation, and unit labor costs, 2005-2006

2006 Percent change, 2005-2006

NAICS Industry Employment Output Labor Unit labor

code (thousands) per hour Output Hours compensation costs

Mining Industries

21 Mining 619 -9.1 0.8 10.9 19.0 18.0

211 Oil and gas extraction 135 -7.0 0.7 8.2 20.0 19.2

2111 Oil and gas extraction 135 -7.0 0.7 8.2 20.0 19.2

212 Mining, except oil and gas 220 -3.0 1.1 4.2 8.9 7.7

2121 Coal mining 78 -7.1 0.0 7.7 9.9 9.8

2122 Metal ore mining 32 -5.1 3.7 9.3 18.6 14.4

2123 Nonmetallic mineral mining and quarrying 110 0.4 0.8 0.4 4.2 3.4

Service-Providing Industries

Utilities

2211 Power generation and supply 396 0.9 0.3 -0.6 2.0 1.7

2212 Natural gas distribution 106 -2.6 -3.0 -0.5 6.3 9.7

Transportation and Warehousing

481 Air transportation 457 5.1 1.5 -3.5 -2.4 -3.8

482111 Line-haul railroads 186 3.1 4.7 1.5 5.3 0.6

48412 General freight trucking, long-distance 922 -0.8 1.5 2.4 5.1 3.5

48421 Used household and office goods moving 106 -1.5 -1.5 0.0 3.2 4.8

491 Postal service 770 0.1 -0.4 -0.5 4.4 4.8

4911 Postal service 770 0.1 -0.4 -0.5 4.4 4.8

492 Couriers and messengers 611 2.8 0.3 -2.4 3.6 3.3

493 Warehousing and storage 647 -2.1 7.8 10.1 9.4 1.5

4931 Warehousing and storage 647 -2.1 7.8 10.1 9.4 1.5

49311 General warehousing and storage 544 -3.3 6.8 10.4 10.3 3.4

49312 Refrigerated warehousing and storage 48 -9.2 0.3 10.4 6.0 5.7

Information

511 Publishing 944 4.5 1.8 -2.6 5.8 4.0

5111 Newspaper, book, and directory publishers 697 3.0 -2.3 -5.2 3.1 5.5

5112 Software publishers 247 1.9 6.7 4.7 9.9 3.0

51213 Motion picture and video exhibition 136 3.3 -0.6 -3.7 2.1 2.7

515 Broadcasting, except internet 338 6.6 7.5 0.9 2.8 -4.4

5151 Radio and television broadcasting 246 8.6 8.9 0.3 4.5 -4.0

5152 Cable and other subscription programming 92 3.2 5.5 2.3 -2.8 -7.9

5171 Wired telecommunications carriers 489 5.8 0.0 -5.5 2.8 2.8

5172 Wireless telecommunications carriers 203 14.1 23.2 7.9 -1.2 -19.8

5175 Cable and other program distribution 143 0.0 7.0 7.0 15.1 7.5

Finance and Insurance

52211 Commercial banking 1323 5.3 6.1 0.8 8.5 2.3

Real Estate and Rental and Leasing

532111 Passenger car rental 132 1.4 -1.9 -3.3 1.7 3.6

53212 Truck, trailer and RV rental and leasing 62 11.8 4.1 -6.9 5.0 0.9

53223 Video tape and disc rental 137 22.4 1.2 -17.3 -7.1 -8.2

Professional and Technical Services

541213 Tax preparation services 148 -3.7 -0.1 3.8 8.8 8.9

54131 Architectural services 230 -1.4 3.9 5.4 11.3 7.1

54133 Engineering services 920 0.7 4.6 3.9 9.7 4.8

54181 Advertising agencies 191 1.0 6.8 5.7 6.2 -0.6

541921 Photography studios, portrait 77 1.9 -2.7 -4.6 6.6 9.6
Table 1. Percent change in output per hour, output, hours, compensation, and unit labor costs, 2005-2006

2006 Percent change, 2005-2006

NAICS Industry Employment Output Labor Unit labor

code (thousands) per hour Output Hours compensation costs

Administrative and Waste Services

56131 Employment placement agencies 305 6.1 4.7 -1.3 11.8 6.8

56151 Travel agencies 123 4.1 4.4 0.3 -1.3 -5.5

56172 Janitorial services 1182 -4.8 1.2 6.4 7.6 6.3

Health Care and Social Assistance

6215 Medical and diagnostic laboratories 211 1.6 6.8 5.1 7.3 0.5

621511 Medical laboratories 143 1.8 7.0 5.2 6.8 -0.2

621512 Diagnostic imaging centers 68 1.5 6.5 4.9 8.3 1.8

Arts, Entertainment, and Recreation

71311 Amusement and theme parks 134 -11.1 -1.8 10.4 1.7 3.5

71395 Bowling centers 79 4.2 2.0 -2.2 4.0 2.0

Accommodation and Food Services

7211 Traveler accommodation 1798 -2.8 0.9 3.7 3.4 2.5

Other Services

8111 Automotive repair and maintenance 1174 0.8 -0.1 -0.9 2.5 2.6

81211 Hair, nail and skin care services 924 -5.8 -3.2 2.8 6.5 10.0

81221 Funeral homes and funeral services 108 7.0 -2.1 -8.5 -1.3 0.9

8123 Drycleaning and laundry services 368 -0.8 2.4 3.2 5.8 3.3

81292 Photofinishing 28 1.8 -10.5 -12.1 -12.4 -2.1
Table 2. Average annual percent change in output per hour, output, hours, compensation, and unit labor costs, 1987-2006

Average annual percent change, 1987-2006

NAICS Industry Output Labor Unit labor

code per hour Output Hours compensation costs

Mining Industries

21 Mining 0.1 -0.3 -0.4 4.4 4.7

211 Oil and gas extraction 1.2 -1.0 -2.2 4.8 5.8

2111 Oil and gas extraction 1.2 -1.0 -2.2 4.8 5.8

212 Mining, except oil and gas 2.5 1.1 -1.3 1.7 0.5

2121 Coal mining 2.9 0.1 -2.7 -0.1 -0.2

2122 Metal ore mining 2.9 2.0 -0.9 3.6 1.6

2123 Nonmetallic mineral mining and quarrying 1.6 1.6 0.0 3.3 1.7

Service-Providing Industries

Utilities

2211 Power generation and supply 3.0 1.3 -1.7 3.1 1.9

2212 Natural gas distribution 3.0 1.0 -1.9 3.8 2.7

Transportation and Warehousing

481 Air transportation 3.0 3.4 0.4 3.1 -0.3

482111 Line-haul railroads 4.8 2.6 -2.1 1.2 -1.3

48412 General freight trucking, long-distance 1.4 3.3 1.9 3.8 0.5

48421 Used household and office goods moving -1.1 0.5 1.6 4.4 3.9

491 Postal service 1.1 1.2 0.1 4.1 2.9

4911 Postal service 1.1 1.2 0.1 4.1 2.9

492 Couriers and messengers -0.7 2.3 3.1 6.7 4.3

493 Warehousing and storage 1/ 3.4 6.8 3.2 6.0 -0.7

4931 Warehousing and storage 1/ 3.4 6.8 3.2 6.0 -0.7

49311 General warehousing and storage 1/ 5.4 8.6 3.1 6.7 -1.7

49312 Refrigerated warehousing and storage 1/ -0.4 3.7 4.0 4.5 0.8

Information

511 Publishing 4.3 4.8 0.5 5.8 0.9

5111 Newspaper, book, and directory publishers 0.3 -0.4 -0.7 3.6 4.0

5112 Software publishers 16.2 24.3 6.9 12.6 -9.4

51213 Motion picture and video exhibition 0.8 1.8 1.0 3.9 2.0

515 Broadcasting, except internet 1.2 2.7 1.4 5.2 2.4

5151 Radio and television broadcasting 0.6 0.9 0.3 4.3 3.4

5152 Cable and other subscription programming 2.5 8.1 5.5 10.6 2.3

5171 Wired telecommunications carriers 5.1 3.3 -1.7 2.4 -0.8

5172 Wireless telecommunications carriers 9.7 24.1 13.2 16.2 -6.4

5175 Cable and other program distribution 0.3 5.8 5.5 10.4 4.3

Finance and Insurance

52211 Commercial banking 2.4 2.2 -0.2 5.9 3.5

Real Estate and Rental and Leasing

532111 Passenger car rental 1.0 3.4 2.4 6.5 3.0

53212 Truck, trailer and RV rental and leasing 5.3 4.8 -0.6 3.8 -0.9

53223 Video tape and disc rental 4.5 6.1 1.6 4.5 -1.6

Professional and Technical Services

541213 Tax preparation services 1.0 4.1 3.1 4.5 0.4

54131 Architectural services 1.5 4.0 2.4 6.2 2.2

54133 Engineering services 1.3 3.5 2.2 6.8 3.1

54181 Advertising agencies 1.7 2.0 0.3 5.0 2.9

541921 Photography studios, portrait -0.2 2.4 2.6 5.0 2.5
Table 2. Average annual percent change in output per hour, output, hours, compensation, and unit labor costs, 1987-2006

Average annual percent change, 1987-2006

NAICS Industry Output Labor Unit labor

code per hour Output Hours compensation costs

Administrative and Waste Services

56131 Employment placement agencies 2/ 2.8 5.5 2.7 9.1 3.5

56151 Travel agencies 4.1 3.1 -0.9 4.3 1.2

56172 Janitorial services 2.3 4.4 2.0 6.0 1.5

Health Care and Social Assistance

6215 Medical and diagnostic laboratories 2/ 3.6 7.1 3.3 6.1 -0.9

621511 Medical laboratories 2/ 2.8 5.9 3.0 5.2 -0.6

621512 Diagnostic imaging centers 2/ 4.8 9.2 4.2 8.1 -1.0

Arts, Entertainment, and Recreation

71311 Amusement and theme parks -0.7 2.6 3.3 6.5 3.9

71395 Bowling centers 0.2 -1.0 -1.3 1.5 2.6

Accommodation and Food Services

7211 Traveler accommodation 1.4 2.7 1.3 5.6 2.8

Other Services

8111 Automotive repair and maintenance 1.4 2.4 1.0 4.4 2.0

81211 Hair, nail and skin care services 2.0 3.1 1.1 5.7 2.4

81221 Funeral homes and funeral services -0.2 0.2 0.4 4.6 4.4

8123 Drycleaning and laundry services 1.1 0.6 -0.5 3.2 2.5

81292 Photofinishing 0.9 -4.7 -5.6 -1.7 3.1

1/ For NAICS industries 493, 4931, 49311, and 49312, average annual percent changes are for 1992-2006.

2/ For NAICS industries 56131, 6215, 621511, and 621512, average annual percent changes are for 1994-2006.