Transmission of material in this release is embargoed until USDL-10-1211 

8:30 a.m. (EDT) Thursday, September 2, 2010 

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

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

PRODUCTIVITY AND COSTS

Second Quarter 2010, Revised 

Nonfarm business sector labor productivity decreased at a 1.8 percent annual rate during the second 

quarter of 2010, the U.S. Bureau of Labor Statistics reported today as hours increased 3.5 percent and 

output increased 1.6 percent. (All quarterly percent changes in this release are seasonally adjusted 

annual rates.) The second-quarter gain in hours worked was the largest since the first quarter of 2006. 

From the second quarter of 2009 to the second quarter of 2010, productivity and output both grew 3.7 

percent and hours were unchanged (chart 1, tables A and 2). Nonfarm business productivity increased at 

an average annual rate of 2.5 percent from 2000 through 2009. 

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 rose 1.1 percent in the second quarter of 2010, as the 1.8 

percent decline in productivity was partially offset by a 0.7 percent decline in hourly compensation. Unit 

labor costs decreased 2.8 percent over the last four quarters, as output per hour increased faster than 

hourly compensation (chart 2, tables A and 2). 

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, 

2005Q1 – 2010Q2

-9.0

-7.0

-5.0

-3.0

-1.0

1.0

3.0

5.0

7.0

9.0

2005 2006 2007 2008 2009 2010

From previous quarter, annual rate

From same quarter a year ago

-9.0

-7.0

-5.0

-3.0

-1.0

1.0

3.0

5.0

7.0

9.0

2005 2006 2007 2008 2009 2010

From previous quarter, annual rate

From same quarter a year ago

Percent change Percent change

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

2005Q1 – 2010Q2
-2- 

Manufacturing sector productivity grew 4.1 percent in the second quarter of 2010, as output rose 8.4 

percent and hours worked increased 4.1 percent. Productivity performance differed between the two 

manufacturing subsectors. In durable manufacturing, output per hour increased 9.9 percent as output 

grew 13.6 percent and hours rose 3.4 percent. In nondurable goods industries, productivity fell 2.4 

percent as output grew 2.8 percent but hours grew 5.3 percent (tables A, 3, 4 and 5). Total 

manufacturing productivity increased 7.5 percent over the last four quarters and 3.0 percent per year on 

average from 2000 through 2009. 

Unit labor costs in manufacturing declined 5.9 percent in the second quarter of 2010 due to both the 

4.1 percent increase in productivity and a 2.0 percent decline in hourly compensation (tables A and 3). 

Unit labor costs fell 7.3 percent over the last four quarters, the largest four-quarter decrease since the 

series began in 1988. 

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

those used in preparing the business and nonfarm business output series, and these measures are not 

directly comparable. See Technical Notes for further information on data sources (page 4). 

Preliminary data for the second quarter of 2010 for the nonfinancial corporate sector also were released 

today. Productivity declined 0.5 percent as output and hours increased 4.0 percent and 4.5 percent, 

respectively (tables C and 6). 

Revised measures 

Tables B and C present previous and revised productivity and related measures for the major sectors: 

nonfarm business, business and manufacturing, as well as nonfinancial corporations. 

In the second quarter of 2010, nonfarm business sector productivity was revised down and unit labor 

costs were revised up as a result of a downward revision to output. In the manufacturing sector, 

productivity was revised down to 4.1 percent from 4.5 percent; hours were revised up more than output. 

Unit labor costs did not fall as fast as previously reported due to the downward revision to productivity. 

In the first quarter of 2010, nonfarm business sector productivity was not revised, and manufacturing 

sector productivity was revised upwards. In both sectors, unit labor costs fell more than previously 

reported as hourly compensation was revised downward. 

Nonfinancial corporate sector productivity growth in the first quarter of 2010 was revised down to 8.6 

percent from 9.1 percent reflecting a downward revision to output. Unit labor costs were revised down 

as hourly compensation was revised down more than productivity. 

___________ 

The preliminary Productivity and Costs press release for third quarter 2010 is scheduled to be 

released on Thursday, November 4, 2010 at 8:30 a.m. (EDT). 
-3- 

 

Table A. Revised second-quarter 2010 measures: percent change from previous quarter, 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 -1.8 3.7 -1.9 3.7 4.1 7.5 9.9 11.4 -2.4 3.2

Output 1.6 3.7 1.7 3.7 8.4 8.4 13.6 12.0 2.8 4.5

Hours 3.5 0.0 3.7 0.0 4.1 0.8 3.4 0.5 5.3 1.2

Hourly compensation -0.7 0.8 -0.8 0.8 -2.0 -0.3 -1.9 -0.5 -2.1 0.1

Real hourly compensation 0.0 -1.0 -0.1 -1.0 -1.3 -2.1 -1.2 -2.3 -1.4 -1.6

Unit labor costs 1.1 -2.8 1.1 -2.8 -5.9 -7.3 -10.7 -10.7 0.3 -3.0

Table B. Revised and previous measures: second quarter and first quarter 2010

Sector

 Nonfarm

 Business Business Manufacturing

 Durable

 Manufacturing

 Nondurable

 Manufacturing

Revised Previous Revised Previous Revised Previous Revised Previous Revised Previous

Percent change, annual rate, second quarter 2010

Productivity -1.8 -0.9 -1.9 -1.1 4.1 4.5 9.9 11.2 -2.4 -2.8

Output 1.6 2.6 1.7 2.6 8.4 8.3 13.6 14.1 2.8 2.2

Hours 3.5 3.6 3.7 3.8 4.1 3.6 3.4 2.7 5.3 5.1

Hourly compensation -0.7 -0.7 -0.8 -0.9 -2.0 -1.9 -1.9 -1.5 -2.1 -2.4

Real hourly compensation 0.0 0.0 -0.1 -0.2 -1.3 -1.2 -1.2 -0.7 -1.4 -1.7

Unit labor costs 1.1 0.2 1.1 0.2 -5.9 -6.1 -10.7 -11.4 0.3 0.5

Percent change, annual rate, first quarter 2010

Productivity 3.9 3.9 3.5 3.5 1.6 1.2 2.4 2.0 1.4 1.0

Output 5.0 5.0 5.0 5.0 7.0 7.0 9.3 9.2 4.6 4.6

Hours 1.1 1.1 1.4 1.4 5.3 5.7 6.8 7.1 3.1 3.5

Hourly compensation -0.9 0.0 -1.1 -0.2 -6.5 -5.0 -7.8 -5.8 -4.4 -4.0

Real hourly compensation -2.4 -1.5 -2.6 -1.7 -7.9 -6.4 -9.2 -7.2 -5.8 -5.4

Unit labor costs -4.6 -3.7 -4.5 -3.6 -8.0 -6.2 -10.0 -7.6 -5.7 -5.0

Table C. Nonfinancial corporations measures: preliminary second quarter 2010 and revised first quarter 2010 

Productivity Output Hours

Hourly 

compensation

Real hourly 

compensation

Unit labor 

costs

Unit 

profits

Implicit price 

deflator

Percent change, annual rate, second quarter 2010

Q to Q -0.5 4.0 4.5 -1.0 -0.3 -0.5 31.2 2.7

Y to Y 6.4 6.7 0.3 0.9 -0.8 -5.1 37.9 -1.5

Percent change, annual rate, first quarter 2010

Revised 8.6 10.8 2.1 -0.9 -2.3 -8.7 64.6 -2.1

Previous 9.1 11.4 2.1 0.0 -1.4 -8.4 63.7 -2.1
-4- 

 

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 2009. Nonfarm business, 

which excludes farming, accounted for about 74 percent of GDP in 2009. 

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 

47 percent of the value of GDP in 2009. 

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 
-5- 

 

services produced per hour. Although these measures relate output to hours at work of all persons 

engaged in a sector, they do not measure the specific contribution of labor, capital, or any other factor of 

production. Rather, they reflect the joint effects of many influences, including changes in technology; 

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

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

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 index number 

series where 2005=100, as percent changes from the corresponding quarter of the previous year, and as 

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

http://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. 
-6- 

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)

2010 II -1.9 r 1.7 r 3.7 r -0.8 r -0.1 r 1.1 r 4.3 r 2.5 r

 I 3.5 5.0 1.4 -1.1 r -2.6 r -4.5 r 9.6 r 1.2 

2009 ANNUAL 3.5 -3.7 -6.9 1.8 2.2 -1.6 3.8 0.5 

2009 IV 6.1 6.5 0.3 1.5 -1.2 -4.4 5.2 -0.5 

 III 7.2 1.6 -5.3 3.8 0.0 -3.2 7.4 0.9 

 II 8.3 -0.3 -7.9 9.0 7.1 0.6 -2.9 -0.8 

 I 3.5 -6.2 -9.4 -3.6 -1.5 -6.9 13.6 0.8 

2008 ANNUAL 1.1 -0.9 -2.0 3.2 -0.6 2.1 1.4 1.8 

2008 IV -0.3 -9.3 -9.0 0.8 11.0 1.1 -7.9 -2.6 

 III -1.1 -6.1 -5.0 3.6 -2.6 4.8 5.7 5.1 

 II 1.2 -0.6 -1.8 0.1 -4.8 -1.1 12.3 4.0 

 I -0.9 -2.0 -1.1 4.5 -0.3 5.4 -5.7 0.9 

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

 Percent change from corresponding quarter of previous year

2010 II 3.7 r 3.7 r 0.0 0.8 r -1.0 r -2.8 6.6 r 1.0 

 I 6.3 3.2 -2.9 3.2 r 0.8 r -2.9 r 4.7 r 0.2 

2009 ANNUAL 3.5 -3.7 -6.9 1.8 2.2 -1.6 3.8 0.5 

2009 IV 6.3 0.3 -5.6 2.5 1.0 -3.5 5.6 0.1 

 III 4.6 -3.7 -7.9 2.4 4.0 -2.2 2.2 -0.4 

 II 2.5 -5.5 -7.8 2.3 3.3 -0.2 1.8 0.6 

 I 0.8 -5.6 -6.3 0.2 0.3 -0.6 5.6 1.8 

2008 ANNUAL 1.1 -0.9 -2.0 3.2 -0.6 2.1 1.4 1.8 

2008 IV -0.3 -4.5 -4.3 2.2 0.6 2.5 0.8 1.8 

 III 0.5 -1.5 -2.0 3.4 -1.8 2.8 1.9 2.5 

 II 1.9 0.6 -1.2 3.3 -0.9 1.4 1.8 1.6 

 I 2.4 1.7 -0.6 3.9 -0.3 1.5 1.3 1.4 

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

 Indexes 2005=100

2010 II 110.4 r 103.4 r 93.7 r 114.5 r 102.9 r 103.7 r 117.3 r 109.1 r

 I 111.0 103.0 92.8 114.7 r 102.9 r 103.4 r 116.0 r 108.4 

2009 ANNUAL 107.3 100.4 93.6 113.6 103.4 105.9 111.6 108.1 

2009 IV 110.0 101.7 92.5 115.1 103.6 104.6 113.4 108.1 

 III 108.4 100.1 92.4 114.6 103.9 105.8 112.0 108.2 

 II 106.5 99.8 93.7 113.6 103.9 106.6 110.0 108.0 

 I 104.4 99.8 95.6 111.2 102.1 106.5 110.8 108.2 

2008 ANNUAL 103.6 104.2 100.5 111.5 101.1 107.6 107.5 107.6 

2008 IV 103.5 101.4 98.0 112.2 102.5 108.4 107.3 108.0 

 III 103.6 103.9 100.3 112.0 99.9 108.1 109.6 108.7 

 II 103.9 105.6 101.6 111.0 100.6 106.8 108.1 107.3 

 I 103.6 105.7 102.1 111.0 101.8 107.1 105.0 106.3 

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

See footnotes following Table 6. September 2, 2010

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

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)

2010 II -1.8 r 1.6 r 3.5 r -0.7 0.0 1.1 r 4.7 r 2.6 r

 I 3.9 5.0 1.1 -0.9 r -2.4 r -4.6 r 9.8 r 1.2 

2009 ANNUAL 3.5 -3.8 -7.0 1.9 2.2 -1.6 4.6 0.8 

2009 IV 6.0 6.7 0.7 1.5 -1.1 -4.2 3.5 -1.1 

 III 7.0 1.4 -5.2 3.4 -0.3 -3.3 8.1 1.1 

 II 8.4 -0.2 -7.9 9.1 7.2 0.6 -2.9 -0.8 

 I 3.4 -6.4 -9.5 -3.7 -1.6 -6.9 15.4 1.4 

2008 ANNUAL 1.0 -1.1 -2.1 3.3 -0.5 2.2 1.2 1.8 

2008 IV -0.1 -9.5 -9.5 1.1 11.3 1.2 -6.5 -1.9 

 III -1.3 -6.2 -4.9 3.7 -2.6 5.0 6.0 5.4 

 II 1.2 -0.3 -1.5 -0.2 -5.1 -1.4 13.6 4.2 

 I -1.4 -2.5 -1.2 4.7 0.0 6.2 -7.0 0.8 

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

 Percent change from corresponding quarter of previous year

2010 II 3.7 r 3.7 r 0.0 0.8 r -1.0 r -2.8 6.5 r 0.9 

 I 6.3 3.2 -2.9 3.2 r 0.8 r -2.9 r 4.5 r 0.1 

2009 ANNUAL 3.5 -3.8 -7.0 1.9 2.2 -1.6 4.6 0.8 

2009 IV 6.2 0.3 -5.6 2.5 1.0 -3.5 5.8 0.2 

 III 4.6 -3.8 -8.0 2.4 4.0 -2.2 3.2 0.0 

 II 2.5 -5.6 -8.0 2.4 3.4 -0.1 2.7 1.0 

 I 0.8 -5.7 -6.4 0.2 0.3 -0.6 6.8 2.2 

2008 ANNUAL 1.0 -1.1 -2.1 3.3 -0.5 2.2 1.2 1.8 

2008 IV -0.4 -4.7 -4.3 2.3 0.7 2.7 1.2 2.1 

 III 0.5 -1.7 -2.2 3.6 -1.6 3.1 1.6 2.5 

 II 1.9 0.5 -1.3 3.5 -0.8 1.6 1.4 1.5 

 I 2.2 1.6 -0.6 3.8 -0.3 1.6 0.7 1.2 

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

 Indexes 2005=100

2010 II 110.4 r 103.3 r 93.6 r 114.5 r 102.9 r 103.7 r 117.6 r 109.2 r

 I 110.9 102.9 92.8 114.7 r 102.9 r 103.4 r 116.2 r 108.5 

2009 ANNUAL 107.2 100.3 93.5 113.5 103.3 105.9 111.9 108.3 

2009 IV 109.9 101.7 92.5 115.0 103.5 104.7 113.5 108.2 

 III 108.3 100.0 92.4 114.5 103.8 105.8 112.6 108.5 

 II 106.5 99.7 93.6 113.6 103.9 106.7 110.4 108.2 

 I 104.3 99.7 95.6 111.1 102.1 106.5 111.2 108.4 

2008 ANNUAL 103.6 104.2 100.6 111.5 101.1 107.6 107.0 107.4 

2008 IV 103.5 101.4 98.0 112.2 102.5 108.4 107.3 108.0 

 III 103.5 104.0 100.5 111.9 99.8 108.1 109.1 108.5 

 II 103.8 105.6 101.7 110.9 100.5 106.8 107.5 107.1 

 I 103.5 105.7 102.1 111.0 101.8 107.2 104.2 106.0 

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

See footnotes following Table 6. September 2, 2010

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

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)

2010 II 4.1 r 8.4 r 4.1 r -2.0 r -1.3 r -5.9 r

 I 1.6 r 7.0 5.3 r -6.5 r -7.9 r -8.0 r

2009 ANNUAL 2.0 -10.9 -12.6 5.2 5.6 3.2 

2009 IV 8.1 7.2 -0.8 4.4 1.6 -3.5 

 III 16.9 10.9 -5.1 3.3 -0.4 -11.6 

 II 6.2 -8.5 -13.8 6.5 4.6 0.3 

 I -1.8 -20.9 -19.4 4.0 6.3 5.9 

2008 ANNUAL -0.7 -4.7 -4.0 4.0 0.1 4.6 

2008 IV -2.6 -18.3 -16.1 7.0 17.9 9.9 

 III -1.5 -10.4 -9.0 6.3 -0.1 7.9 

 II -6.7 -7.9 -1.4 3.4 -1.7 10.7 

 I -0.7 -2.7 -2.0 2.2 -2.4 2.9 

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

 Percent change from corresponding quarter of previous year

2010 II 7.5 8.4 r 0.8 -0.3 r -2.1 r -7.3 r

 I 8.1 r 3.9 -3.9 r 1.8 r -0.6 r -5.8 r

2009 ANNUAL 2.0 -10.9 -12.6 5.2 5.6 3.2 

2009 IV 7.1 -3.7 -10.1 4.5 3.0 -2.4 

 III 4.4 -10.0 -13.8 5.2 6.9 0.8 

 II 0.0 -14.7 -14.7 5.9 7.0 5.9 

 I -3.2 -14.5 -11.8 5.2 5.3 8.6 

2008 ANNUAL -0.7 -4.7 -4.0 4.0 0.1 4.6 

2008 IV -2.9 -10.0 -7.3 4.7 3.1 7.8 

 III -1.4 -5.6 -4.3 5.1 -0.2 6.6 

 II -0.3 -3.0 -2.7 3.8 -0.5 4.1 

 I 2.0 0.0 -2.0 2.5 -1.7 0.4 

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

 Indexes 2005=100

2010 II 111.2 r 92.8 r 83.5 r 114.6 r 103.0 r 103.0 r

 I 110.1 r 91.0 r 82.7 r 115.2 r 103.3 r 104.6 r

2009 ANNUAL 105.6 87.7 83.0 115.2 104.9 109.2 

2009 IV 109.6 89.5 81.6 117.1 105.4 106.8 

 III 107.5 87.9 81.8 115.9 105.0 107.8 

 II 103.4 85.7 82.8 114.9 105.1 111.1 

 I 101.9 87.6 86.0 113.1 103.9 111.1 

2008 ANNUAL 103.5 98.4 95.0 109.5 99.3 105.8 

2008 IV 102.3 92.9 90.7 112.0 102.4 109.5 

 III 103.0 97.7 94.8 110.1 98.2 106.9 

 II 103.4 100.4 97.1 108.5 98.3 104.9 

 I 105.2 102.5 97.4 107.6 98.7 102.3 

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

See footnotes following Table 6. September 2, 2010

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

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)

2010 II 9.9 r 13.6 r 3.4 r -1.9 r -1.2 r -10.7 r

 I 2.4 r 9.3 r 6.8 r -7.8 r -9.2 r -10.0 r

2009 ANNUAL 0.2 -14.9 -15.1 5.8 6.2 5.5 

2009 IV 8.7 8.0 -0.7 5.3 2.5 -3.1 

 III 25.8 17.2 -6.8 2.9 -0.8 -18.2 

 II 5.3 -14.3 -18.6 11.6 9.6 6.0 

 I -7.5 -28.8 -23.0 2.1 4.4 10.4 

2008 ANNUAL 0.1 -4.1 -4.2 3.5 -0.3 3.4 

2008 IV -9.9 -24.2 -15.9 6.6 17.4 18.3 

 III 2.8 -10.2 -12.7 7.3 0.9 4.4 

 II -8.1 -8.8 -0.8 3.8 -1.2 13.0 

 I -0.3 -0.2 0.1 -0.3 -4.8 0.0 

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

 Percent change from corresponding quarter of previous year

2010 II 11.4 r 12.0 r 0.5 r -0.5 r -2.3 r -10.7 r

 I 10.2 r 4.3 -5.3 r 2.7 r 0.3 r -6.8 r

2009 ANNUAL 0.2 -14.9 -15.1 5.8 6.2 5.5 

2009 IV 7.4 -6.3 -12.7 5.4 3.9 -1.9 

 III 2.5 -14.2 -16.3 5.7 7.5 3.1 

 II -2.5 -19.7 -17.6 6.8 7.9 9.6 

 I -5.8 -18.5 -13.5 4.9 5.1 11.4 

2008 ANNUAL 0.1 -4.1 -4.2 3.5 -0.3 3.4 

2008 IV -4.0 -11.3 -7.6 4.3 2.7 8.7 

 III 0.3 -4.8 -5.1 4.9 -0.4 4.6 

 II 0.3 -2.2 -2.5 3.5 -0.7 3.2 

 I 3.8 1.9 -1.9 1.6 -2.5 -2.1 

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

 Indexes 2005=100

2010 II 115.3 r 93.0 r 80.6 r 115.6 r 103.9 r 100.3 r

 I 112.6 r 90.1 r 80.0 r 116.2 r 104.2 r 103.2 r

2009 ANNUAL 106.8 86.0 80.5 116.2 105.8 108.8 

2009 IV 112.0 88.1 78.7 118.6 106.8 105.9 

 III 109.7 86.4 78.8 117.1 106.1 106.8 

 II 103.5 83.0 80.2 116.2 106.3 112.2 

 I 102.2 86.3 84.4 113.1 103.9 110.6 

2008 ANNUAL 106.5 101.0 94.8 109.9 99.6 103.2 

2008 IV 104.2 94.0 90.2 112.5 102.8 107.9 

 III 107.0 100.7 94.1 110.7 98.7 103.5 

 II 106.2 103.4 97.4 108.8 98.5 102.4 

 I 108.5 105.9 97.6 107.8 98.8 99.3 

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

See footnotes following Table 6. September 2, 2010

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

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)

2010 II -2.4 r 2.8 r 5.3 r -2.1 r -1.4 r 0.3 r

 I 1.4 r 4.6 3.1 r -4.4 r -5.8 r -5.7 r

2009 ANNUAL 2.5 -6.0 -8.3 4.8 5.2 2.3 

2009 IV 7.5 6.3 -1.2 2.7 0.0 -4.5 

 III 6.7 4.3 -2.2 4.5 0.8 -2.0 

 II 4.1 -1.5 -5.4 -1.1 -2.8 -5.0 

 I 2.5 -10.7 -12.9 8.4 10.8 5.7 

2008 ANNUAL -1.6 -5.3 -3.7 4.9 1.0 6.6 

2008 IV 7.0 -10.7 -16.6 7.8 18.7 0.8 

 III -8.5 -10.6 -2.3 5.2 -1.1 15.0 

 II -4.7 -6.8 -2.3 2.3 -2.7 7.3 

 I -0.1 -5.6 -5.5 6.9 2.1 7.0 

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

 Percent change from corresponding quarter of previous year

2010 II 3.2 r 4.5 r 1.2 r 0.1 -1.6 -3.0 r

 I 4.9 r 3.4 -1.5 r 0.4 r -2.0 r -4.3 r

2009 ANNUAL 2.5 -6.0 -8.3 4.8 5.2 2.3 

2009 IV 5.2 -0.6 -5.5 3.6 2.0 -1.6 

 III 5.1 -4.9 -9.4 4.8 6.5 -0.2 

 II 1.1 -8.5 -9.5 5.0 6.0 3.9 

 I -1.1 -9.7 -8.7 5.9 6.1 7.1 

2008 ANNUAL -1.6 -5.3 -3.7 4.9 1.0 6.6 

2008 IV -1.7 -8.5 -6.9 5.5 3.9 7.4 

 III -3.9 -6.6 -2.8 5.7 0.4 10.0 

 II -1.0 -4.0 -3.0 4.3 0.0 5.3 

 I 0.1 -2.1 -2.2 4.1 -0.1 4.0 

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

 Indexes 2005=100

2010 II 105.1 r 93.0 r 88.5 r 113.4 r 101.9 r 107.8 r

 I 105.8 r 92.4 r 87.4 r 114.0 r 102.2 r 107.8 r

2009 ANNUAL 102.9 89.9 87.4 114.1 103.9 111.0 

2009 IV 105.4 91.4 86.7 115.3 103.8 109.4 

 III 103.5 90.0 86.9 114.5 103.8 110.6 

 II 101.8 89.0 87.4 113.3 103.6 111.2 

 I 100.8 89.4 88.7 113.6 104.3 112.7 

2008 ANNUAL 100.3 95.7 95.4 108.9 98.7 108.5 

2008 IV 100.2 91.9 91.8 111.3 101.7 111.1 

 III 98.5 94.6 96.0 109.2 97.4 110.9 

 II 100.7 97.3 96.6 107.9 97.7 107.1 

 I 101.9 99.0 97.1 107.2 98.4 105.2 

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

See footnotes following Table 6. September 2, 2010

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

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)

2010 II -0.5 4.0 4.5 -1.0 -0.3 -0.5 -2.0 -1.0 31.2 2.7 

 I 8.6 r 10.8 r 2.1 -0.9 r -2.3 r -8.7 r -8.4 r -8.6 r 64.6 r -2.1 

2009 ANNUAL 1.6 -6.0 -7.5 2.2 2.6 0.6 2.7 1.2 -2.5 0.8 

2009 IV 12.5 12.9 0.3 1.4 -1.3 -9.9 -8.1 -9.4 38.2 -5.3 

 III 5.3 -0.4 -5.4 4.2 0.5 -1.0 -7.8 -3.0 21.2 -0.9 

 II 3.4 -5.8 -8.9 6.9 5.1 3.4 -2.6 1.6 -21.4 -0.9 

 I -5.2 -15.6 -11.0 -3.5 -1.4 1.7 9.0 3.8 -4.2 3.0 

2008 ANNUAL 2.7 0.9 -1.7 3.5 -0.3 0.8 3.8 1.6 -14.2 -0.3 

2008 IV 0.4 -8.1 -8.4 3.0 13.5 2.7 11.1 5.1 -36.5 -0.4 

 III 5.9 0.3 -5.3 4.5 -1.8 -1.4 2.3 -0.3 86.7 6.5 

 II 1.7 -0.4 -2.1 1.9 -3.1 0.2 5.0 1.5 -9.2 0.4 

 I 0.2 -0.2 -0.4 2.8 -1.8 2.7 2.9 2.7 -35.0 -2.2 

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

 Percent change from corresponding quarter of previous year

2010 II 6.4 6.7 0.3 0.9 -0.8 -5.1 -6.6 -5.6 37.9 -1.5 

 I 7.4 r 4.1 r -3.1 2.9 r 0.4 r -4.2 r -6.7 r -5.0 21.3 r -2.4 

2009 ANNUAL 1.6 -6.0 -7.5 2.2 2.6 0.6 2.7 1.2 -2.5 0.8 

2009 IV 3.8 -2.7 -6.3 2.2 0.7 -1.6 -2.6 -1.9 6.0 -1.1 

 III 0.9 -7.6 -8.4 2.6 4.3 1.7 2.1 1.8 -12.7 0.2 

 II 1.0 -7.5 -8.4 2.6 3.7 1.6 4.8 2.5 -2.8 2.0 

 I 0.6 -6.2 -6.8 1.4 1.6 0.8 6.8 2.5 0.8 2.3 

2008 ANNUAL 2.7 0.9 -1.7 3.5 -0.3 0.8 3.8 1.6 -14.2 -0.3 

2008 IV 2.0 -2.2 -4.1 3.0 1.5 1.0 5.3 2.2 -8.5 1.0 

 III 4.6 2.5 -2.0 4.0 -1.2 -0.6 1.8 0.1 0.0 0.1 

 II 2.3 1.5 -0.8 3.5 -0.7 1.2 4.1 2.0 -24.3 -1.4 

 I 1.9 1.9 0.0 3.5 -0.7 1.6 4.1 2.3 -21.7 -0.8 

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

 Indexes 2005=100

2010 II 111.9 105.2 94.1 113.4 101.9 101.4 109.8 103.7 108.2 104.3 

 I 112.0 r 104.2 r 93.1 113.7 r 102.0 r 101.5 r 110.4 r 104.0 r 101.1 r 103.6 

2009 ANNUAL 106.4 99.7 93.7 112.5 102.4 105.8 116.0 108.6 83.4 105.4 

2009 IV 109.7 101.6 92.6 113.9 102.5 103.8 112.8 106.3 89.3 104.2 

 III 106.5 98.5 92.5 113.5 102.9 106.6 115.3 109.0 82.3 105.6 

 II 105.2 98.6 93.8 112.3 102.8 106.8 117.6 109.8 78.5 105.9 

 I 104.3 100.1 96.0 110.5 101.5 105.9 118.4 109.4 83.3 106.1 

2008 ANNUAL 104.7 106.1 101.3 110.1 99.8 105.1 112.9 107.3 85.5 104.5 

2008 IV 105.7 104.4 98.8 111.5 101.9 105.5 115.9 108.4 84.2 105.3 

 III 105.6 106.7 101.0 110.6 98.7 104.8 112.9 107.0 94.4 105.4 

 II 104.1 106.6 102.4 109.4 99.1 105.2 112.2 107.1 80.7 103.8 

 I 103.6 106.7 103.0 108.9 99.9 105.1 110.9 106.7 82.7 103.7 

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

See footnotes following Table 6. September 2, 2010

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

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

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

Board. Compensation and hours data are from the Bureau of Labor Statistics and the Bureau of Economic 

Analysis. 

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

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

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

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

between –1.7 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 first quarter of 2010. 

Footnotes, Tables 1-6

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

plans. Except for nonfinancial corporations, where there are no 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 1978-2009 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 average 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.