Transmission of material in this release is embargoed until USDL-14-0167 

8:30 a.m. (EST) Thursday, February 6, 2014 

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

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

PRODUCTIVITY AND COSTS

Fourth Quarter and Annual Averages 2013, Preliminary

Nonfarm business sector labor productivity increased at a 3.2 percent annual rate during the fourth

quarter of 2013, the U.S. Bureau of Labor Statistics reported today. The increase in productivity reflects 

increases of 4.9 percent in output and 1.7 percent in hours worked. (All quarterly percent changes in this 

release are seasonally adjusted annual rates.) From the fourth quarter of 2012 to the fourth quarter of 

2013, productivity increased 1.7 percent as output and hours worked rose 3.3 percent and 1.6 percent, 

respectively. (See chart 1 and table A.) Annual average productivity increased 0.6 percent from 2012 to 

2013. (See table C.) 

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. 

 

Unit labor costs in nonfarm businesses decreased 1.6 percent in the fourth quarter of 2013, as the 3.2 

percent increase in productivity was larger than a 1.5 percent increase in hourly compensation. Unit 

labor costs fell 1.3 percent over the last four quarters. (See chart 2 and table A.) 

BLS defines unit labor costs as the ratio of hourly compensation to labor productivity; increases in 

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

them.

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

2009Q1 – 2013Q4

-14.0

-12.0

-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

2009 2010 2011 2012 2013

From previous quarter, annual rate

From same quarter a year ago

Percent change Percent change

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

2009Q1 – 2013Q4

-14.0

-12.0

-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

2009 2010 2011 2012 2013

From previous quarter, annual rate

From same quarter a year ago
Manufacturing sector productivity increased 2.0 percent in the fourth quarter of 2013, as output and 

hours worked increased 6.6 percent and 4.4 percent, respectively. Productivity increased 3.4 percent in 

the durable goods sector and increased 1.0 percent in the nondurable goods sector. Over the last four 

quarters, manufacturing productivity increased 2.1 percent, as output increased 3.3 percent and hours 

increased 1.2 percent. Unit labor costs in manufacturing fell 1.0 percent in the fourth quarter of 2013 

and declined 0.9 percent from the same quarter a year ago. (See tables A and 3.) Nonfinancial 

corporate sector productivity decreased 0.5 percent in the third quarter of 2013. (See table D.) 

The concepts, sources, and methods used for the manufacturing and nonfinancial corporate output series

differ from those used in the business and nonfarm business output series; these output measures are not 

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

Table C presents annual averages for the most recent five years for the nonfarm business sector and the 

total manufacturing sector. Nonfarm business sector productivity grew 0.6 percent in 2013, as output 

and hours increased 2.3 percent and 1.6 percent, respectively. Because productivity grew more slowly 

than hourly compensation (1.6 percent), unit labor costs rose in 2013 (1.0 percent). Real hourly 

compensation, which takes into account changes in consumer prices, increased 0.2 percent in 2013. In 

the manufacturing sector, productivity increased 2.0 percent from 2012 to 2013, and unit labor costs 

declined 0.8 percent.

Revised measures

Revised and previous measures for the third quarter of 2013 are shown in tables B and D and cover the 

following major sectors: nonfarm business, business, manufacturing, and nonfinancial corporations. 

In the third quarter of 2013, nonfarm business productivity was revised to a 3.6 percent increase due to 

an upward revision to output; hours were unrevised. (See table B.) Unit labor costs for the nonfarm 

business sector fell 2.0 percent in the third quarter, a larger decline than previously reported. 

In the manufacturing sector, productivity was unrevised in the third quarter of 2013. Manufacturing unit 

labor costs were revised down slightly, to an increase of 1.2 percent. In the nonfinancial corporate 

sector, productivity declined 0.5 percent in the third quarter of 2013, a smaller decline than previously 

reported. (See table D.) 

Quarterly and annual data for all sectors from 2011 to 2013 appear in tables 1-6. Full historical measures 

can be found on the productivity and costs home page at www.bls.gov/lpc/#data. ______________

The revised Productivity and Costs news release for fourth-quarter 2013 is scheduled to be 

released on Thursday, March 6, 2014 at 8:30 a.m. (EST). 

-2- 
Table A. Preliminary fourth-quarter 2013 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

Productivity 3.2 1.7 2.6 2.1 2.0 2.1 3.4 3.1 1.0 1.4

Output 4.9 3.3 4.4 3.7 6.6 3.3 8.8 4.9 4.1 1.6

Hours 1.7 1.6 1.7 1.6 4.4 1.2 5.2 1.7 3.1 0.2

Hourly compensation 1.5 0.4 1.3 0.4 1.0 1.2 0.7 0.7 1.7 2.1

Real hourly compensation 0.6 -0.9 0.4 -0.8 0.2 0.0 -0.2 -0.6 0.8 0.9

Unit labor costs -1.6 -1.3 -1.3 -1.6 -1.0 -0.9 -2.7 -2.4 0.7 0.7

Table B. Revised and previous measures: third quarter 2013 

Sector

 Nonfarm

 Business Business Manufacturing

 Durable

 Manufacturing

 Nondurable

 Manufacturing

Revised Previous Revised Previous Revised Previous Revised Previous Revised Previous

Percent change, annual rate, third quarter 2013

Productivity 3.6 3.0 3.4 2.7 -0.1 -0.1 1.0 1.1 -0.8 -1.0

Output 5.4 4.7 5.6 4.9 1.3 1.1 3.2 3.1 -0.8 -1.0

Hours 1.7 1.7 2.2 2.1 1.3 1.2 2.1 1.9 0.0 0.0

Hourly compensation 1.6 1.6 1.2 1.2 1.2 1.3 0.1 0.3 3.2 2.9

Real hourly compensation -1.0 -1.0 -1.4 -1.4 -1.4 -1.3 -2.5 -2.3 0.5 0.3

Unit labor costs -2.0 -1.4 -2.1 -1.5 1.2 1.3 -0.9 -0.8 4.0 4.0

Table C. Annual average changes in productivity and related measures: 2009-2013

Sector Nonfarm Business Manufacturing

2009 2010 2011 2012 2013 2009 2010 2011 2012 2013

Productivity 3.2 3.3 0.5 1.5 0.6 0.1 6.3 1.0 1.8 2.0

Output -4.3 3.2 2.5 3.7 2.3 -12.9 6.3 3.1 4.1 2.6

Hours -7.2 -0.1 2.0 2.2 1.6 -13.0 -0.1 2.1 2.3 0.5

Hourly compensation 1.1 2.1 2.5 2.6 1.6 3.5 2.4 1.3 1.9 1.2

Real hourly compensation 1.5 0.4 -0.7 0.5 0.2 3.8 0.7 -1.8 -0.2 -0.2

Unit labor costs -2.0 -1.2 2.0 1.2 1.0 3.4 -3.7 0.4 0.1 -0.8

Table D. Nonfinancial corporations: revised and previous third-quarter 2013 productivity and cost measures 

Productivity Output Hours

Hourly 

compensation

Real hourly 

compensation

Unit labor 

costs Unit profits

Implicit price 

deflator

Percent change, annual rate, third quarter 2013

Revised -0.5 1.7 2.2 1.1 -1.5 1.6 2.4 2.1

Previous -0.7 1.5 2.2 1.1 -1.5 1.8 2.7 2.0

-3- 
TECHNICAL NOTES

Labor Hours: Hours data for the labor productivity and cost measures include hours for all persons 

working in the sector—wage and salary workers, the self-employed and unpaid family workers. The 

primary source of hours and employment data is the BLS Current Employment Statistics (CES) 

program, which provides monthly survey data on the number of jobs held by wage and salary workers in 

nonfarm establishments. The CES also provides average weekly paid hours of production and 

nonsupervisory workers in these establishments. Weekly paid hours are adjusted to hours at work using 

data from the National Compensation Survey (NCS). The BLS Hours at Work survey, conducted for 

this purpose, was used for earlier years. The Office of Productivity and Technology estimates average 

weekly hours at work for nonproduction and supervisory workers using information from the Current 

Population Survey (CPS), the CES, and the NCS. 

Data from the CPS are used for farm labor, nonfarm proprietors, and nonfarm unpaid family 

workers. Estimates of labor input for government enterprises are derived from the CPS, the CES, and 

the National Income and Product Accounts (NIPA) prepared by the Bureau of Economic Analysis 

(BEA) of the Department of Commerce.

The CES measures jobs, counting a person who is employed by two or more establishments at 

each place of employment. In contrast, the CPS features measures of employment that count each person 

only once and classify each person according to his or her primary job; hours worked at all jobs by that 

person accrue to his or her primary job. However, the CPS also collects more detailed information on 

employment and hours worked at primary jobs and all other jobs, separately. The BLS productivity 

measures use the more detailed information on employment and hours to assign all hours worked to the 

correct industrial sector and avoid duplicating hours data from the CES. 

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

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

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

labor inputs. Business output accounted for about 75 percent of the value of GDP in 2012. Nonfarm 

business, which excludes farming, accounted for about 74 percent of GDP in 2012. 

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

constructed by deflating current-dollar industry value of production data from the U.S. Bureau of the 

Census with deflators from the BLS. These deflators are based on data from the BLS producer price 

program and other sources. The industry shipments are aggregated using annual weights, and intrasector 

transactions are removed. Quarterly manufacturing output measures are based on the index of industrial 

production prepared monthly by the Board of Governors of the Federal Reserve System, adjusted to be 

consistent with annual indexes of manufacturing sector output prepared by BLS. Durables include the 

following 3-digit NAICS industries: wood product manufacturing; nonmetallic mineral product 

manufacturing; primary metal manufacturing; fabricated metal product manufacturing; machinery 

manufacturing; computer and electronic product manufacturing; electrical equipment and appliance 

manufacturing; transportation equipment manufacturing; furniture and related product manufacturing; 

and miscellaneous manufacturing. Nondurables include: food manufacturing; beverage and tobacco 

product manufacturing; textile mills; textile product mills; apparel manufacturing; leather and allied 

product manufacturing; paper manufacturing; printing and related support activities; petroleum and coal 

products manufacturing; chemical manufacturing; and plastics and rubber products manufacturing.

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

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

outputs from GDP: general government; nonprofit institutions; private households; unincorporated 

business; and those corporations classified as offices of bank holding companies, offices of other 

holding companies, or offices in the finance and insurance sector. Nonfinancial corporations accounted 

for about 49 percent of the value of GDP in 2012. 

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; 

-4- 
capital investment; level of output; utilization of capacity, energy, and materials; the organization of 

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

Labor Compensation: The measure includes accrued wages and salaries, supplements, employer 

contributions to employee benefit plans, and taxes. Estimates of labor compensation by major sector, 

required for measures of hourly compensation and unit labor costs, are based primarily on employee 

compensation data from the NIPA, prepared by the BEA. The compensation of employees in general 

government, nonprofit institutions and private households are subtracted from compensation of 

domestic employees to derive employee compensation for the business sector. The labor compensation 

of proprietors cannot be explicitly identified and must be estimated. This is done by assuming that 

proprietors have the same hourly compensation as employees in the same sector. The quarterly labor 

productivity and cost measures do not contain estimates of compensation for unpaid family workers. 

Unit Labor Costs: The measures of unit labor costs in this release describe the relationship between 

compensation per hour and productivity, or real output per hour, and can be used as an indicator of 

inflationary pressure on producers. Increases in hourly compensation increase unit labor costs; labor 

productivity increases offset compensation increases and lower unit labor costs. 

Presentation of the data: The quarterly data in this release are presented in three ways: as percent 

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

corresponding quarter of the previous year, and as index number series where 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. These index numbers are available at the BLS web site, 

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

(Telephone 202-691-5606 or email DPRWEB@BLS.GOV) 

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

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

-5- 
Table 1. Business sector: Productivity, hourly compensation, unit labor costs, and prices,

seasonally adjusted

 Real

 Output Compen- compen- Unit Implicit

Year per hour Hours sation sation Unit nonlabor price

and of all of all per hour per hour labor payments deflator

quarter persons Output persons (1) (2) costs (3) (4)

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

 Percent change from previous quarter at annual rate(5)

2013 ANNUAL 1.0 2.5 1.5 1.8 0.3 0.8 2.4 1.5 

2013 IV 2.6 4.4 1.7 1.3 0.4 -1.3 3.1 0.6 

 III 3.4 r 5.6 r 2.2 r 1.2 -1.4 -2.1 r 7.7 r 2.1 

 II 2.0 3.4 1.3 3.9 4.0 1.9 -1.7 0.3 

 I 0.4 1.4 1.0 -4.6 -6.0 -4.9 11.4 1.8 

2012 ANNUAL 1.4 3.6 2.2 2.6 0.5 1.2 2.6 1.8 

2012 IV -1.9 0.2 2.1 10.2 7.8 12.2 -11.5 1.2 

 III 2.1 3.6 1.4 0.8 -1.2 -1.3 7.4 2.5 

 II 1.3 1.6 0.3 1.9 0.9 0.6 3.9 2.0 

 I 1.3 4.9 3.5 8.8 6.3 7.4 -5.4 1.6 

2011 ANNUAL 0.4 2.4 2.0 2.4 -0.7 2.0 2.3 2.1 

2011 IV 3.3 6.4 2.9 -4.5 -5.9 -7.6 12.4 0.7 

 III -0.1 1.8 1.9 2.6 -0.3 2.8 3.0 2.9 

 II 1.6 4.1 2.4 -0.7 -5.1 -2.3 9.8 2.7 

 I -3.3 -1.9 1.4 6.3 1.8 10.0 -8.4 1.6 

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

 Percent change from corresponding quarter of previous year

2013 ANNUAL 1.0 2.5 1.5 1.8 0.3 0.8 2.4 1.5 

2013 IV 2.1 3.7 1.6 0.4 -0.8 -1.6 5.0 1.2 

 III 0.9 r 2.6 r 1.7 r 2.5 0.9 1.6 r 1.1 r 1.4 

 II 0.6 2.1 1.5 2.4 1.0 1.8 1.0 1.5 

 I 0.5 1.7 1.2 1.9 0.2 1.5 2.4 1.9 

2012 ANNUAL 1.4 3.6 2.2 2.6 0.5 1.2 2.6 1.8 

2012 IV 0.7 2.6 1.8 5.3 3.4 4.6 -1.7 1.8 

 III 2.0 4.1 2.0 1.6 -0.1 -0.4 4.4 1.7 

 II 1.4 3.6 2.2 2.1 0.2 0.6 3.3 1.8 

 I 1.5 4.3 2.7 1.4 -1.4 -0.1 4.7 2.0 

2011 ANNUAL 0.4 2.4 2.0 2.4 -0.7 2.0 2.3 2.1 

2011 IV 0.4 2.5 2.2 0.8 -2.4 0.5 3.9 2.0 

 III -0.1 1.9 1.9 2.5 -1.2 2.5 2.3 2.4 

 II 0.6 2.5 1.9 2.5 -0.9 1.8 2.6 2.2 

 I 0.6 2.7 2.1 3.8 1.7 3.2 0.1 1.9 

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

 Indexes 2009=100

2013 ANNUAL 106.2 112.2 105.7 109.1 100.4 102.7 112.2 106.7 

2013 IV 107.3 114.1 106.4 109.8 100.6 102.3 113.7 107.1 

 III 106.6 r 112.9 r 105.9 r 109.4 r 100.5 r 102.7 r 112.9 r 106.9 

 II 105.7 111.4 105.4 109.1 100.8 103.2 110.8 106.4 

 I 105.2 110.5 105.0 108.1 99.9 102.7 111.3 106.3 

2012 ANNUAL 105.1 109.5 104.1 107.2 100.1 102.0 109.6 105.1 

2012 IV 105.1 110.1 104.7 109.4 101.4 104.0 108.3 105.8 

 III 105.6 110.0 104.2 106.7 99.5 101.1 111.7 105.5 

 II 105.0 109.1 103.8 106.5 99.9 101.4 109.7 104.9 

 I 104.7 108.6 103.7 106.0 99.6 101.3 108.6 104.4 

2011 ANNUAL 103.6 105.6 101.9 104.4 99.6 100.8 106.8 103.3 

2011 IV 104.4 107.3 102.9 103.8 98.1 99.5 110.2 103.9 

 III 103.5 105.7 102.1 105.0 99.6 101.5 107.0 103.8 

 II 103.6 105.2 101.6 104.4 99.7 100.8 106.2 103.0 

 I 103.1 104.2 101.0 104.5 101.0 101.4 103.7 102.4 

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

See footnotes following Table 6. February 6, 2014

r=revised Source: Bureau of Labor Statistics

-6- 
Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs, and prices,

seasonally adjusted

 Real

 Output Compen- compen- Unit Implicit

Year per hour Hours sation sation Unit nonlabor price

and of all of all per hour per hour labor payments deflator

quarter persons Output persons (1) (2) costs (3) (4)

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

 Percent change from previous quarter at annual rate(5)

2013 ANNUAL 0.6 2.3 1.6 1.6 0.2 1.0 1.6 1.3 

2013 IV 3.2 4.9 1.7 1.5 0.6 -1.6 4.6 1.1 

 III 3.6 r 5.4 r 1.7 1.6 -1.0 -2.0 r 8.4 r 2.4 

 II 1.8 3.3 1.4 3.8 3.9 2.0 -0.7 0.8 

 I -1.7 -0.3 1.5 -5.2 -6.6 -3.5 6.8 0.7 

2012 ANNUAL 1.5 3.7 2.2 2.6 0.5 1.2 2.7 1.8 

2012 IV -1.7 0.7 2.4 9.9 7.5 11.8 -12.1 0.8 

 III 2.5 4.2 1.6 0.7 -1.3 -1.8 7.7 2.2 

 II 1.2 1.6 0.4 1.9 0.9 0.7 4.0 2.1 

 I 1.5 5.0 3.4 9.0 6.5 7.4 -5.5 1.5 

2011 ANNUAL 0.5 2.5 2.0 2.5 -0.7 2.0 1.4 1.7 

2011 IV 2.9 5.9 2.9 -4.6 -5.9 -7.3 13.3 1.1 

 III 0.0 1.7 1.7 3.0 0.0 3.0 2.3 2.7 

 II 1.9 4.7 2.8 -1.1 -5.4 -2.9 10.1 2.4 

 I -3.2 -2.1 1.2 6.6 2.1 10.2 -10.3 0.9 

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

 Percent change from corresponding quarter of previous year

2013 ANNUAL 0.6 2.3 1.6 1.6 0.2 1.0 1.6 1.3 

2013 IV 1.7 3.3 1.6 0.4 -0.9 -1.3 4.7 1.3 

 III 0.5 r 2.3 r 1.8 2.4 0.8 1.9 r 0.3 r 1.2 

 II 0.2 1.9 1.7 2.2 0.7 2.0 0.1 1.2 

 I 0.0 1.5 1.5 1.7 0.0 1.6 1.3 1.5 

2012 ANNUAL 1.5 3.7 2.2 2.6 0.5 1.2 2.7 1.8 

2012 IV 0.9 2.8 1.9 5.3 3.3 4.4 -1.8 1.7 

 III 2.0 4.1 2.1 1.6 0.0 -0.4 4.6 1.7 

 II 1.4 3.5 2.1 2.2 0.3 0.8 3.3 1.9 

 I 1.6 4.3 2.7 1.5 -1.3 -0.1 4.8 1.9 

2011 ANNUAL 0.5 2.5 2.0 2.5 -0.7 2.0 1.4 1.7 

2011 IV 0.4 2.5 2.1 0.9 -2.4 0.5 3.4 1.8 

 III 0.2 2.1 1.9 2.6 -1.1 2.4 1.4 2.0 

 II 0.7 2.7 1.9 2.4 -0.9 1.7 1.7 1.7 

 I 0.6 2.7 2.1 4.0 1.8 3.3 -0.9 1.5 

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

 Indexes 2009=100

2013 ANNUAL 105.9 112.1 105.9 109.1 100.5 103.0 110.0 105.9 

2013 IV 107.1 114.1 106.5 109.9 100.7 102.6 112.0 106.5 

 III 106.3 r 112.8 r 106.1 r 109.5 r 100.5 r 103.0 r 110.7 r 106.2 r

 II 105.4 111.3 105.6 109.1 100.8 103.5 108.5 105.6 

 I 104.9 110.4 105.2 108.0 99.8 103.0 108.7 105.4 

2012 ANNUAL 105.3 109.7 104.1 107.4 100.3 102.0 108.3 104.6 

2012 IV 105.4 110.5 104.8 109.5 101.5 103.9 106.9 105.2 

 III 105.8 110.3 104.2 106.9 99.7 101.1 110.4 105.0 

 II 105.2 109.2 103.8 106.8 100.1 101.5 108.4 104.4 

 I 104.8 108.7 103.7 106.3 99.8 101.3 107.3 103.8 

2011 ANNUAL 103.8 105.7 101.9 104.6 99.7 100.8 105.5 102.7 

2011 IV 104.5 107.4 102.8 104.0 98.3 99.6 108.9 103.4 

 III 103.7 105.9 102.1 105.2 99.8 101.5 105.5 103.2 

 II 103.7 105.4 101.7 104.4 99.8 100.7 105.0 102.5 

 I 103.2 104.2 101.0 104.7 101.2 101.5 102.5 101.9 

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

See footnotes following Table 6. February 6, 2014

r=revised Source: Bureau of Labor Statistics

-7- 
Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,

seasonally adjusted

 Real

 Output Compen- compenYear per hour Hours sation sation Unit

and of all of all per hour per hour labor

quarter persons Output persons (1) (2) costs

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

 Percent change from previous quarter at annual rate(5)

2013 ANNUAL 2.0 2.6 0.5 1.2 -0.2 -0.8 

2013 IV 2.0 6.6 4.4 1.0 0.2 -1.0 

 III -0.1 1.3 r 1.3 r 1.2 r -1.4 r 1.2 r

 II 2.8 0.2 -2.5 3.3 3.3 0.4 r

 I 3.8 5.4 1.6 -0.7 -2.1 -4.3 

2012 ANNUAL 1.8 4.1 2.3 1.9 -0.2 0.1 

2012 IV 2.3 2.7 0.4 4.1 1.9 1.8 

 III -0.3 0.1 0.4 -1.8 -3.8 -1.5 

 II 1.0 2.1 1.1 0.8 -0.1 -0.2 

 I 4.3 8.4 3.9 10.4 7.9 5.9 

2011 ANNUAL 1.0 3.1 2.1 1.3 -1.8 0.4 

2011 IV 0.2 5.2 4.9 -4.8 -6.1 -5.0 

 III 5.0 4.7 -0.3 2.2 -0.7 -2.7 

 II -3.5 -0.7 2.9 -2.3 -6.6 1.3 

 I 0.7 3.0 2.4 1.2 -3.0 0.6 

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

 Percent change from corresponding quarter of previous year

2013 ANNUAL 2.0 2.6 0.5 1.2 -0.2 -0.8 

2013 IV 2.1 3.3 1.2 1.2 0.0 -0.9 

 III 2.2 2.4 r 0.2 r 2.0 0.4 -0.2 

 II 2.1 2.1 -0.1 1.2 -0.2 -0.9 

 I 1.7 2.6 0.9 0.6 -1.1 -1.1 

2012 ANNUAL 1.8 4.1 2.3 1.9 -0.2 0.1 

2012 IV 1.8 3.3 1.4 3.3 1.4 1.5 

 III 1.3 3.9 2.6 1.0 -0.7 -0.3 

 II 2.6 5.1 2.4 2.0 0.1 -0.6 

 I 1.4 4.3 2.8 1.2 -1.6 -0.2 

2011 ANNUAL 1.0 3.1 2.1 1.3 -1.8 0.4 

2011 IV 0.6 3.0 2.5 -0.9 -4.1 -1.5 

 III 0.8 2.1 1.2 1.4 -2.3 0.6 

 II -0.2 2.1 2.3 1.3 -2.0 1.4 

 I 2.6 5.1 2.4 3.6 1.5 1.0 

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

 Indexes 2009=100

2013 ANNUAL 111.5 117.0 105.0 107.0 98.5 96.0 

2013 IV 112.1 118.6 105.8 107.6 98.6 96.0 

 III 111.5 r 116.8 r 104.7 r 107.3 r 98.5 r 96.2 r

 II 111.5 r 116.4 r 104.3 107.0 98.9 95.9 r

 I 110.8 116.3 105.0 106.1 98.1 95.8 

2012 ANNUAL 109.2 114.1 104.4 105.7 98.7 96.8 

2012 IV 109.7 114.8 104.6 106.3 98.6 96.9 

 III 109.1 114.0 104.5 105.3 98.2 96.5 

 II 109.2 114.0 104.4 105.7 99.1 96.8 

 I 108.9 113.4 104.1 105.5 99.1 96.9 

2011 ANNUAL 107.3 109.5 102.1 103.8 98.9 96.7 

2011 IV 107.8 111.2 103.1 102.9 97.3 95.5 

 III 107.7 109.8 101.9 104.2 98.8 96.7 

 II 106.4 108.5 102.0 103.6 99.0 97.4 

 I 107.4 108.7 101.2 104.2 100.7 97.1 

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

See footnotes following Table 6. February 6, 2014

r=revised Source: Bureau of Labor Statistics

-8- 
Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,

seasonally adjusted

 Real

 Output Compen- compenYear per hour Hours sation sation Unit

and of all of all per hour per hour labor

quarter persons Output persons (1) (2) costs

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

 Percent change from previous quarter at annual rate(5)

2013 ANNUAL 3.0 3.8 0.8 0.8 -0.7 -2.1 

2013 IV 3.4 8.8 5.2 0.7 -0.2 -2.7 

 III 1.0 r 3.2 r 2.1 r 0.1 r -2.5 r -0.9 r

 II 4.4 r 1.5 r -2.8 3.2 3.3 -1.1 

 I 3.7 6.4 2.6 -1.2 -2.7 -4.8 

2012 ANNUAL 4.0 7.0 2.9 1.5 -0.5 -2.3 

2012 IV 3.2 3.8 0.5 4.1 1.9 0.9 

 III 0.3 0.0 -0.3 -2.4 -4.4 -2.7 

 II 3.7 5.0 1.3 -0.6 -1.5 -4.1 

 I 8.5 13.0 4.2 11.6 9.1 2.9 

2011 ANNUAL 2.4 6.3 3.8 0.9 -2.2 -1.5 

2011 IV 1.6 9.5 7.8 -6.3 -7.6 -7.8 

 III 8.1 7.5 -0.6 3.5 0.5 -4.3 

 II -4.9 -0.2 5.0 -4.2 -8.4 0.8 

 I 2.0 6.9 4.9 0.7 -3.6 -1.3 

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

 Percent change from corresponding quarter of previous year

2013 ANNUAL 3.0 3.8 0.8 0.8 -0.7 -2.1 

2013 IV 3.1 4.9 1.7 0.7 -0.6 -2.4 

 III 3.1 3.7 r 0.6 r 1.5 r -0.1 r -1.5 

 II 2.9 2.9 0.0 0.9 -0.5 -2.0 r

 I 2.7 3.8 1.0 -0.1 -1.7 -2.7 

2012 ANNUAL 4.0 7.0 2.9 1.5 -0.5 -2.3 

2012 IV 3.9 5.3 1.4 3.0 1.1 -0.8 

 III 3.5 6.8 3.2 0.4 -1.3 -3.0 

 II 5.4 8.7 3.1 1.8 -0.1 -3.4 

 I 3.2 7.3 4.1 0.9 -1.9 -2.2 

2011 ANNUAL 2.4 6.3 3.8 0.9 -2.2 -1.5 

2011 IV 1.6 5.9 4.2 -1.7 -4.8 -3.2 

 III 1.8 4.5 2.6 1.2 -2.5 -0.6 

 II 0.5 5.1 4.5 0.1 -3.2 -0.5 

 I 5.7 9.9 3.9 4.1 1.9 -1.6 

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

 Indexes 2009=100

2013 ANNUAL 120.8 129.9 107.5 105.8 97.4 87.6 

2013 IV 122.0 132.6 108.7 106.1 97.2 86.9 

 III 121.0 r 129.9 r 107.3 r 105.9 r 97.3 r 87.5 r

 II 120.7 r 128.8 r 106.7 105.9 97.9 87.7 r

 I 119.4 128.4 107.5 105.1 97.1 88.0 

2012 ANNUAL 117.3 125.1 106.7 105.0 98.1 89.5 

2012 IV 118.3 126.4 106.8 105.4 97.8 89.1 

 III 117.4 125.2 106.7 104.3 97.3 88.9 

 II 117.3 125.2 106.7 105.0 98.4 89.5 

 I 116.3 123.7 106.4 105.1 98.8 90.4 

2011 ANNUAL 112.8 116.9 103.6 103.4 98.6 91.6 

2011 IV 113.9 120.0 105.3 102.3 96.7 89.8 

 III 113.5 117.3 103.4 104.0 98.6 91.6 

 II 111.3 115.2 103.5 103.1 98.5 92.6 

 I 112.7 115.2 102.3 104.2 100.7 92.5 

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

See footnotes following Table 6. February 6, 2014

r=revised Source: Bureau of Labor Statistics

-9- 
Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,

seasonally adjusted

 Real

 Output Compen- compenYear per hour Hours sation sation Unit

and of all of all per hour per hour labor

quarter persons Output persons (1) (2) costs

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

 Percent change from previous quarter at annual rate(5)

2013 ANNUAL 1.2 1.2 0.0 2.1 0.6 0.9 

2013 IV 1.0 4.1 3.1 1.7 0.8 0.7 

 III -0.8 r -0.8 r 0.0 3.2 r 0.5 r 4.0 

 II 0.9 -1.1 -2.1 3.4 3.4 2.5 

 I 4.4 4.3 -0.2 0.2 -1.3 -4.0 

2012 ANNUAL -0.1 1.1 1.3 2.4 0.3 2.5 

2012 IV 1.4 1.5 0.2 4.1 1.8 2.7 

 III -1.4 0.2 1.6 -0.4 -2.4 1.0 

 II -1.9 -1.1 0.8 3.6 2.6 5.5 

 I 0.0 3.4 3.4 8.1 5.6 8.1 

2011 ANNUAL 1.2 0.5 -0.6 1.7 -1.4 0.6 

2011 IV 0.5 0.8 0.3 -2.4 -3.8 -2.9 

 III 2.0 2.2 0.2 -0.1 -2.9 -2.1 

 II -0.4 -0.8 -0.4 0.9 -3.6 1.3 

 I 1.4 -0.2 -1.6 1.8 -2.5 0.4 

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

 Percent change from corresponding quarter of previous year

2013 ANNUAL 1.2 1.2 0.0 2.1 0.6 0.9 

2013 IV 1.4 1.6 0.2 2.1 0.9 0.7 

 III 1.5 r 0.9 -0.5 2.7 1.1 1.2 

 II 1.3 1.2 -0.1 1.8 0.4 0.5 

 I 0.6 1.2 0.6 1.8 0.1 1.2 

2012 ANNUAL -0.1 1.1 1.3 2.4 0.3 2.5 

2012 IV -0.5 1.0 1.5 3.8 1.8 4.3 

 III -0.7 0.8 1.5 2.1 0.4 2.8 

 II 0.2 1.3 1.2 2.2 0.3 2.0 

 I 0.6 1.4 0.9 1.5 -1.2 1.0 

2011 ANNUAL 1.2 0.5 -0.6 1.7 -1.4 0.6 

2011 IV 0.9 0.5 -0.4 0.0 -3.2 -0.8 

 III 1.3 0.2 -1.0 1.5 -2.2 0.3 

 II 1.1 -0.1 -1.2 3.0 -0.4 1.8 

 I 1.4 1.4 0.1 2.5 0.3 1.1 

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

 Indexes 2009=100

2013 ANNUAL 105.4 106.3 100.8 108.9 100.2 103.3 

2013 IV 105.5 106.9 101.3 109.9 100.6 104.1 

 III 105.3 r 105.8 r 100.5 109.4 r 100.4 r 103.9 r

 II 105.5 r 106.0 r 100.5 108.5 100.3 102.9 r

 I 105.3 106.4 101.0 107.6 99.5 102.3 

2012 ANNUAL 104.2 105.0 100.8 106.6 99.6 102.3 

2012 IV 104.1 105.2 101.1 107.6 99.8 103.3 

 III 103.8 104.8 101.0 106.5 99.3 102.6 

 II 104.1 104.8 100.6 106.6 99.9 102.4 

 I 104.6 105.1 100.4 105.7 99.3 101.0 

2011 ANNUAL 104.3 103.8 99.6 104.1 99.3 99.8 

2011 IV 104.6 104.2 99.6 103.7 98.0 99.1 

 III 104.5 104.0 99.5 104.3 98.9 99.8 

 II 103.9 103.4 99.5 104.3 99.6 100.4 

 I 104.0 103.6 99.6 104.1 100.6 100.0 

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

See footnotes following Table 6. February 6, 2014

r=revised Source: Bureau of Labor Statistics

-10- 
Table 6. Nonfinancial corporate sector: Productivity, hourly compensation, unit labor costs, unit profits,

and prices, seasonally adjusted

 Real Unit

 Output Hourly hourly non- Total Unit Implicit

Year per all- compen- compen- Unit labor unit pro- price

and employee Employee sation sation labor costs cost fits deflator

quarter hour Output hours (1) (2) costs (6) (7) (8) (4)

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

 Percent change from previous quarter at annual rate(5)

2013 III -0.5 r 1.7 r 2.2 1.1 -1.5 1.6 r 3.1 r 2.1 r 2.4 r 2.1 r

 II 3.3 4.9 1.6 3.7 3.7 0.4 -5.6 -1.6 8.0 -0.3 

 I -4.1 -1.3 2.9 -6.1 -7.5 -2.1 9.1 1.5 0.3 1.3 

2012 ANNUAL 1.4 3.7 2.3 2.8 0.7 1.4 0.2 1.0 3.8 1.4 

2012 IV 4.5 6.4 1.8 7.6 5.2 3.0 -4.2 0.6 9.6 1.8 

 III -2.9 -2.0 1.0 0.6 -1.4 3.7 3.0 3.5 -7.4 1.8 

 II 0.9 1.6 0.7 1.2 0.3 0.3 1.1 0.6 5.8 1.3 

 I 5.1 8.9 3.5 11.5 9.0 6.1 -0.6 3.8 -2.2 2.9 

2011 ANNUAL 0.3 3.0 2.8 2.1 -1.0 1.9 0.7 1.5 7.7 2.3 

2011 IV 1.8 4.5 2.7 -4.3 -5.6 -6.0 -1.3 -4.5 0.8 -3.7 

 III -3.5 -0.7 2.8 1.4 -1.5 5.1 3.2 4.5 7.6 4.9 

 II 2.4 6.4 3.9 -1.8 -6.1 -4.1 -1.8 -3.3 54.1 3.1 

 I 4.2 6.1 1.8 8.9 4.3 4.5 -0.3 2.9 -16.9 0.0 

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

 Percent change from corresponding quarter of previous year

2013 III 0.7 2.9 r 2.1 1.4 -0.1 0.7 0.4 r 0.6 r 5.0 r 1.2 

 II 0.1 1.9 1.8 1.3 -0.1 1.2 0.4 0.9 2.4 1.2 

 I -0.5 1.1 1.6 0.7 -1.0 1.2 2.1 1.5 1.9 1.6 

2012 ANNUAL 1.4 3.7 2.3 2.8 0.7 1.4 0.2 1.0 3.8 1.4 

2012 IV 1.8 3.6 1.7 5.1 3.2 3.2 -0.2 2.1 1.2 2.0 

 III 1.2 3.2 2.0 2.1 0.4 0.9 0.5 0.8 -0.9 0.5 

 II 1.0 3.5 2.4 2.3 0.4 1.3 0.6 1.0 2.9 1.3 

 I 1.4 4.7 3.2 1.6 -1.2 0.1 -0.2 0.0 13.1 1.7 

2011 ANNUAL 0.3 3.0 2.8 2.1 -1.0 1.9 0.7 1.5 7.7 2.3 

2011 IV 1.2 4.0 2.8 0.9 -2.3 -0.3 -0.1 -0.2 8.5 1.0 

 III -0.7 2.1 2.7 2.2 -1.5 2.9 1.7 2.5 5.4 2.9 

 II 0.7 3.5 2.8 2.1 -1.2 1.4 0.4 1.0 12.8 2.6 

 I -0.2 2.6 2.8 3.3 1.1 3.5 0.9 2.6 4.1 2.8 

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

 Indexes 2009=100

2013 III 107.3 r 115.5 r 107.7 r 108.0 r 99.2 r 100.7 r 98.6 r 100.0 r 149.6 r 105.2 r

 II 107.4 115.0 107.1 107.7 99.5 100.3 97.9 99.5 148.7 104.6 

 I 106.5 113.6 106.7 106.7 98.6 100.2 99.3 99.9 145.9 104.7 

2012 ANNUAL 107.1 112.9 105.4 106.8 99.8 99.7 97.5 99.0 144.2 103.7 

2012 IV 107.6 114.0 105.9 108.4 100.6 100.7 97.2 99.5 145.8 104.4 

 III 106.5 112.2 105.4 106.5 99.3 100.0 98.2 99.4 142.5 103.9 

 II 107.3 112.8 105.2 106.3 99.6 99.1 97.5 98.6 145.3 103.4 

 I 107.0 112.4 105.0 106.0 99.6 99.0 97.2 98.4 143.2 103.1 

2011 ANNUAL 105.7 108.8 103.0 103.9 99.1 98.3 97.4 98.0 139.0 102.3 

2011 IV 105.7 110.0 104.1 103.1 97.5 97.6 97.4 97.5 144.0 102.4 

 III 105.2 108.8 103.4 104.3 98.9 99.1 97.7 98.6 143.8 103.3 

 II 106.2 109.0 102.7 103.9 99.2 97.9 96.9 97.6 141.2 102.1 

 I 105.5 107.3 101.7 104.4 100.8 98.9 97.4 98.4 126.7 101.3 

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

See footnotes following Table 6. February 6, 2014

r=revised Source: Bureau of Labor Statistics

-11- 
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 1.5 index points approximately 95 percent of the time. This interval is based on the 

performance of this measure between the fourth quarter of 1995 and the third quarter of 2013. 

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 1978-2012 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.

-12-