Bureau of Labor Statistics Washington, D.C. 20212 

Internet address: http://www.bls.gov/lpc/ USDL 09-0587 

Historical, technical TRANSMISSION OF THIS

 information: (202) 691-5606 MATERIAL IS EMBARGOED

Current data: (202) 691-5200 UNTIL 8:30 A.M. EDT, 

Media contact: (202) 691-5902 THURSDAY, JUNE 4, 2009.

PRODUCTIVITY AND COSTS

First Quarter 2009, Revised 

The Bureau of Labor Statistics of the U.S. Department of Labor today reported revised 

productivity data—as measured by output per hour of all persons—for the first quarter of 2009. The 

revised seasonally adjusted annual rates of productivity change in the first quarter were:

 1.8 percent in the business sector and 

 1.6 percent in the nonfarm business sector. 

In both sectors, the first-quarter productivity gains were greater than the preliminary estimates reported 

on May 7, due solely to revisions to output growth. 

 In manufacturing, the revised productivity changes in the first quarter were: 

-2.7 percent in manufacturing, 

-10.4 percent in durable goods manufacturing, and 

 1.9 percent in nondurable goods manufacturing. 

Manufacturing productivity in the first quarter of 2009 fell at a slower rate than was reported on 

May 7. Output and hours in manufacturing, which includes about 11 percent of U.S. business-sector 

employment, tend to vary more from quarter to quarter than data for the aggregate business and 

nonfarm business sectors. First-quarter measures are summarized in table A and appear in detail in 

tables 1 through 5. 

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

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

comparable. Output measures for business and nonfarm business are based on measures of gross 

domestic product prepared by the Bureau of Economic Analysis of the U.S. Department of Commerce. 

Quarterly output measures for manufacturing reflect indexes of industrial production prepared by the 

Board of Governors of the Federal Reserve System. See Technical Notes for further information on 

data sources (page 8). 

News United States 

Department 

of Labor 
2

Table A. Productivity and costs: Revised first-quarter 2009 measures 

(Seasonally adjusted annual rates)

Sector

Productivity Output Hours

Hourly 

compensation

Real 

hourly 

compensation

Unit 

labor 

costs

Percent change from preceding quarter

Business 1.8 -7.2 -8.8 4.5 7.0 2.7

Nonfarm business 1.6 -7.6 -9.0 4.6 7.1 3.0

Manufacturing -2.7 -21.7 -19.5 13.4 16.1 16.6

 Durable -10.4 -31.0 -23.0 15.8 18.6 29.3

 Nondurable 1.9 -11.6 -13.2 10.1 12.8 8.1

Percent change from same quarter a year ago

Business 2.0 -3.8 -5.7 4.1 4.3 2.0

Nonfarm business 1.9 -4.0 -5.8 4.1 4.3 2.2

Manufacturing -3.2 -13.9 -11.0 8.4 8.7 12.0

 Durable -6.9 -18.8 -12.8 9.5 9.7 17.6

 Nondurable -0.8 -8.8 -8.0 6.9 7.1 7.8

Business

 Business sector productivity grew 1.8 percent in the first quarter of 2009 as output decreased 

7.2 percent and hours worked by all persons—employees, proprietors, and unpaid family workers—

decreased 8.8 percent (seasonally adjusted annual rates). The decrease in hours was the largest since a 

decline of 12.1 percent in the first quarter of 1975. From the first quarter of 2008 to the first quarter of 

2009, productivity has increased 2.0 percent, with output and hours falling 3.8 percent and 5.7 percent, 

respectively (tables A and 1). This productivity growth rate was lower than the 2.5 percent average 

annual rate from 2000 to 2007. 

 Hourly compensation increased at a 4.5 percent annual rate in the first quarter of 2009. This 

measure of compensation includes wages and salaries, supplements, employer contributions to 

employee benefit plans, and taxes. Real hourly compensation, which takes into account changes in 

consumer prices, rose 7.0 percent in the first quarter of 2009. 

The change in unit labor costs approximates the change in hourly compensation less the change 

in productivity. In the first quarter of 2009 these costs grew at a 2.7 percent annual rate, higher than 

the 2.0 percent rate from the first quarter of 2008 to the first quarter of 2009 and the 1.4 percent 

average annual rate from 2000 to 2007. The implicit price deflator for business output, which reflects 

changes in both unit labor costs and unit nonlabor payments, grew 2.2 percent in the first quarter of 

2009. 
3

Nonfarm Business

During the first quarter of 2009, productivity rose 1.6 percent in the nonfarm business sector; 

output fell 7.6 percent and hours of all persons fell 9.0 percent (seasonally-adjusted annual rates). The 

decrease in hours, 9.0 percent, was the largest since the first quarter of 1975, when hours fell 12.0 

percent. Over the last four quarters, productivity in the nonfarm business sector grew 1.9 percent (chart 

1, tables A and 2). This growth rate was lower than the 2.5 percent average rate of growth from 2000 to 

2007. 

 Hourly compensation increased at a 4.6 percent annual rate in the nonfarm business sector in 

the first quarter of 2009. The measure increased 4.5 percent in the fourth quarter, as revised. When 

hourly compensation is adjusted for the fall in consumer prices, real hourly compensation grew 7.1 

percent in the first quarter of 2009. 

Unit labor costs rose 3.0 percent in the first quarter of 2009. The percent change from the same 

quarter a year ago was 2.2 percent (chart 2). The implicit price deflator for nonfarm business output 

increased 2.8 percent in the first quarter of 2009. 

 

Manufacturing

 Productivity decreased at a 2.7 percent annual rate in the manufacturing sector during the first 

quarter of 2009, reflecting a 21.7 percent decrease in output and a 19.5 percent decrease in hours 

(tables A and 3). These were the largest-ever declines in the output and hours series, which begin with 

data for the second quarter of 1987. Over the last four quarters, manufacturing productivity fell 3.2 

percent, the largest four-quarter decline in the series (chart 3, tables A and 3). This contrasts with the 

3.7 percent average annual increase from 2000 to 2007. In the durable goods manufacturing subsector, 

output declined 31.0 percent and hours fell 23.0 percent, yielding a productivity decline of 10.4 

percent. In nondurable goods industries, productivity rose 1.9 percent as the decline in output of 11.6 

percent was less than the 13.2 percent decline in hours. 

Hourly compensation in manufacturing grew 13.4 percent during the first quarter of 2009, 

reflecting a 15.8 percent rise in durable goods industries and a 10.1 percent rise in the nondurable 

goods industries (seasonally-adjusted annual rates). Real hourly compensation, which takes into 

account changes in consumer prices, increased 16.1 percent for all manufacturing workers. 
4

 Unit labor costs rose 16.6 percent in manufacturing during the first quarter of 2009, after 

increasing 17.1 percent in the fourth quarter of 2008. Over the last four quarters total manufacturing 

unit labor costs increased 12.0 percent, the largest increase in the series (chart 4). 

 

Nonfinancial Corporations 

Preliminary first-quarter 2009 measures of productivity and costs for nonfinancial corporations 

also were announced today (tables B and 6). Productivity decreased 2.1 percent in the first quarter as 

output fell 12.3 percent and hours fell 10.4 percent (seasonally adjusted annual rates). The decline in 

output was the largest in the series, which begins in the second quarter of 1958. The hours decline was 

the largest since a 13.9 percent decline in the first quarter of 1975. From the first quarter of 2008 to the 

first quarter of 2009 productivity grew 2.0 percent; it had grown at a 2.7 percent annual rate from 2000 

to 2007. The nonfinancial corporate sector includes all corporations doing business in the United 

States, except those classified as depository institutions, nondepository institutions, security and 

commodity brokers, insurance carriers, regulated investment offices, small business investment offices, 

and real estate investment trusts.

Table B. Nonfinancial corporations: Preliminary first-quarter 2009 productivity and costs 

measures

(Seasonally adjusted annual rates)

Period

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation

Unit 

labor 

costs

Unit 

profits

Implicit 

price 

deflator

Percent change from preceding quarter

2009 I -2.1 -12.3 -10.4 6.3 8.8 8.5 -20.5 6.4

Percent change from same quarter a year ago

2009 I 2.0 -4.1 -5.9 5.0 5.2 3.0 -9.7 2.8
5

Hourly compensation increased 6.3 percent during the first quarter of 2009; real hourly 

compensation increased 8.8 percent, after accounting for the decline in prices. Unit labor costs in 

nonfinancial corporations rose 8.5 percent in the first quarter of 2009, and 3.0 percent over the last four 

quarters. 

Revised Measures

 Previous and revised measures for the first quarter of 2009 in the business, nonfarm business, 

and manufacturing sectors are compared in table C. In the business, nonfarm business, and 

Table C. Previous and revised productivity and related measures 

(Quarterly percent changes at seasonally adjusted annual rates)

Sector

Productivity Output Hours

Hourly 

compensation

Real 

hourly 

compensation

Unit 

labor 

costs

First quarter 2009 

Business:

 Previous........................ 1.1 -7.8 -8.8 4.1 6.6 2.9

 Revised......................... 1.8 -7.2 -8.8 4.5 7.0 2.7

Nonfarm business:

 Previous........................ 0.8 -8.2 -9.0 4.1 6.6 3.3

 Revised......................... 1.6 -7.6 -9.0 4.6 7.1 3.0

Manufacturing:

 Previous........................ -3.4 -22.4 -19.7 12.8 15.5 16.7

 Revised......................... -2.7 -21.7 -19.5 13.4 16.1 16.6

Fourth quarter 2008 

Business:

 Previous........................ -0.5 -8.5 -8.0 4.9 14.4 5.4 Revised......................... -0.5 -8.5 -8.0 4.2 13.7 4.8

Nonfarm business:

 Previous........................ -0.6 -8.8 -8.3 5.2 14.8 5.7 Revised......................... -0.6 -8.8 -8.3 4.5 14.0 5.1

Manufacturing:

 Previous........................ -4.2 -18.0 -14.4 10.1 20.2 15.0 Revised......................... -4.6 -18.3 -14.4 11.8 22.0 17.1

Annual average 2008 

Business:

 Previous........................ 2.7 0.8 -1.9 3.6 -0.2 0.9 Revised......................... 2.7 0.8 -1.9 3.6 -0.2 0.9

Nonfarm business:

 Previous........................ 2.8 0.8 -1.9 3.7 -0.1 0.9

 Revised......................... 2.8 0.8 -1.9 3.7 -0.2 0.9

Manufacturing:

 Previous........................ 0.9 -3.0 -3.9 4.0 0.2 3.1

 Revised......................... 0.9 -3.1 -3.9 4.1 0.3 3.2
6

manufacturing sectors productivity was revised up along with output; hours were also revised up 

slightly in the manufacturing sector. Upward revisions to hourly compensation were less than the 

revisions to productivity, so unit labor costs increased less than was reported on May 7 for each of the 

three sectors. 

Table C also presents preliminary and revised results for the fourth quarter and annual average 

of 2008. In the business and nonfarm business sectors, revised employee compensation data from the 

Bureau of Economic Analysis (BEA) of the Department of Commerce resulted in downward revisions 

to hourly compensation, real hourly compensation, and unit labor costs. In the manufacturing sector, 

fourth quarter productivity was revised down due to a downward revision to output. Unit labor costs 

were revised up due both to the downward revision to productivity and an upward revision to hourly 

compensation. Annual measures for all sectors were mostly unaffected by the fourth-quarter revisions. 

Revised Measures Nonfinancial Corporations 

Fourth quarter and annual average 2008 measures were revised for the nonfinancial corporate 

sector. As revised, productivity decreased at a 4.3 percent annual rate in the fourth quarter of 2008, 

reflecting a 0.4 percentage point downward revision to output and unchanged employee hours. A 

downward revision to hourly compensation was larger than the downward revision to productivity; as 

a result, unit labor costs rose slightly less than reported on May 7. Annual measures were virtually the 

same as the preliminary estimates. 

Table D. Nonfinancial corporations: Previous and revised productivity and costs measures

(Quarterly percent changes at seasonally adjusted annual rates)

Productivity Output Hours 

Hourly 

compensation

Real 

hourly 

compensation

Unit 

labor 

costs

Unit 

profits

Implicit 

price 

deflator

Fourth quarter 2008 

Previous -3.9 -10.5 -6.9 5.4 15.0 9.6 -28.8 5.0

Revised -4.3 -10.9 -6.9 4.7 14.2 9.4 -28.5 5.0

Annual average 2008 

Previous 2.8 1.3 -1.5 3.9 0.1 1.1 -10.4 0.0

Revised 2.8 1.3 -1.5 3.9 0.0 1.1 -10.4 0.0
7

Next release date

 The next release of Productivity and Costs is scheduled for 8:30 AM EDT, Tuesday, 

August 11, 2009. Preliminary second-quarter measures for business, nonfarm business, and 

manufacturing will be released at that time. The August 11 release also will incorporate the three-year 

revision of the National Income and Product Accounts. 

Upcoming change to the Productivity and Costs news release

 Beginning with the Productivity and Costs news release scheduled for publication on 

Wednesday, September 2, 2009, the Bureau of Labor Statistics will introduce changes to the format of 

the text section, including text tables. All data series will continue to be provided. For further 

information, see the note under “Latest Announcements” on http://www.bls.gov/newsroom/. 
8

 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 78 percent of the value of GDP 

in 2000. Nonfarm business, which excludes farming, accounted for about 77 percent of GDP in 

2000. 

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 54 percent of the value of GDP in 2000. 
9

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; 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: 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 1992=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. 
10

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

seasonally adjusted

 Real

 Year Output per Hours Compensa- compensa- Unit Unit non- Implicit

 and hour of of all tion per tion per labor labor pay- price

 quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4)

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

 Indexes 1992=100

2007 I 135.7 164.5 121.3 174.3 122.1 128.5 134.3 130.7

 II 137.5 166.8 121.3 175.4 121.6 127.5 137.5 131.2

 III 140.0 169.0 120.8 177.4 122.3 126.7 139.8 131.6

 IV 139.6 168.8 120.9 178.9 121.6 128.2 139.0 132.2

 ANNUAL 138.2 167.3 121.1 176.5 121.9 127.7 137.7 131.4

2008 I 140.4 169.1 120.4 180.5 121.3 128.6 140.2 132.9

 II 142.0 170.2 119.9 181.3 120.6 127.7 142.4 133.2

 III 142.8 169.4 118.6 183.9 120.4 128.8 144.3 134.6

 IV 142.6 165.7 116.2 r185.8 r124.4 r130.3 r141.8 134.6

 ANNUAL r141.9 168.6 r118.8 r182.8 r121.6 r128.8 r142.1 133.8

2009 I r143.2 r162.6 r113.5 r187.8 r126.5 r131.2 r142.3 r135.3

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

 Percent change from previous quarter at annual rate(5)

2007 I -0.7 -0.7 0.0 4.0 0.2 4.7 3.0 4.0

 II 5.7 5.6 0.0 2.4 -1.7 -3.1 9.9 1.7 

 III 7.3 5.5 -1.7 4.6 2.2 -2.5 7.0 1.1

 IV -1.1 -0.6 0.5 3.7 -2.0 4.8 -2.3 2.0

 ANNUAL 1.6 2.0 0.5 4.2 1.3 2.6 2.1 2.4

2008 I 2.2 0.7 -1.5 3.5 -1.1 1.2 3.2 2.0

 II 4.7 2.6 -1.9 1.9 -2.4 -2.6 6.4 0.9

 III 2.3 -1.8 -4.0 5.7 -0.4 3.3 5.6 4.2

 IV -0.5 -8.5 -8.0 r4.2 r13.7 r4.8 r-6.9 0.0

 ANNUAL 2.7 0.8 -1.9 3.6 -0.2 0.9 3.2 1.8

2009 I r1.8 r-7.2 -8.8 r4.5 r7.0 r2.7 1.6 r2.2

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

 Percent change from corresponding quarter of previous year

2007 I -0.2 1.0 1.2 3.9 1.5 4.1 0.6 2.7

 II 0.7 1.7 1.0 4.3 1.6 3.6 0.9 2.5

 III 2.9 3.0 0.1 4.9 2.6 1.9 2.6 2.2

 IV 2.7 2.4 -0.3 3.7 -0.3 0.9 4.3 2.2

 ANNUAL 1.6 2.0 0.5 4.2 1.3 2.6 2.1 2.4

2008 I 3.5 2.8 -0.7 3.5 -0.7 0.0 4.4 1.7

 II 3.2 2.0 -1.2 3.4 -0.8 0.2 3.5 1.5

 III 2.0 0.2 -1.7 3.7 -1.5 1.6 3.2 2.3

 IV 2.1 -1.8 -3.9 r3.8 r2.3 r1.6 r2.0 1.8

 ANNUAL 2.7 0.8 -1.9 3.6 -0.2 0.9 3.2 1.8

2009 I r2.0 r-3.8 -5.7 4.1 4.3 r2.0 r1.5 r1.8

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

See footnotes following Table 6. June 4, 2009

r=revised Source: Bureau of Labor Statistics
11

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

seasonally adjusted

 Real

 Year Output per Hours Compensa- compensa- Unit Unit non- Implicit

 and hour of of all tion per tion per labor labor pay- price

 quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4)

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

 Indexes 1992=100

2007 I 134.7 164.7 122.2 173.4 121.5 128.7 135.1 131.1

 II 136.3 167.0 122.5 174.0 120.6 127.6 138.3 131.5

 III 138.7 169.2 122.0 175.8 121.2 126.8 140.5 131.8

 IV 138.5 168.9 122.0 177.8 120.8 128.4 139.7 132.5

 ANNUAL 137.0 167.5 122.2 175.2 121.0 127.9 138.4 131.7

2008 I 139.4 169.3 121.5 179.4 120.6 128.7 141.0 133.2

 II 141.0 170.5 120.9 180.2 119.8 127.8 143.3 133.5

 III 141.7 169.7 119.7 182.7 119.7 128.9 145.6 135.0

 IV 141.5 165.8 117.1 r184.7 r123.7 r130.5 r143.4 135.2

 ANNUAL r140.9 168.8 r119.8 r181.7 r120.8 r129.0 r143.3 134.2

2009 I r142.1 r162.6 r114.4 r186.8 r125.8 r131.5 r144.2 r136.2

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

 Percent change from previous quarter at annual rate(5)

2007 I -0.6 -0.9 -0.2 4.2 0.3 4.8 1.2 3.4

 II 4.8 5.8 0.9 1.3 -2.8 -3.3 9.7 1.5

 III 7.0 5.5 -1.5 4.4 2.0 -2.5 6.4 0.9

 IV -0.5 -0.7 -0.2 4.4 -1.2 5.0 -2.3 2.1

 ANNUAL 1.4 2.0 0.5 4.1 1.3 2.7 1.2 2.1

2008 I 2.6 0.9 -1.7 3.7 -0.8 1.1 3.8 2.1

 II 4.7 2.8 -1.7 1.7 -2.7 -2.8 6.9 0.9

 III 2.2 -1.9 -3.9 5.7 -0.4 3.5 6.4 4.7

 IV -0.6 -8.8 -8.3 r4.5 r14.0 r5.1 r-5.9 0.6

 ANNUAL 2.8 0.8 -1.9 3.7 r-0.2 0.9 3.5 1.9

2009 I r1.6 r-7.6 -9.0 r4.6 r7.1 r3.0 r2.4 r2.8

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

 Percent change from corresponding quarter of previous year

2007 I -0.1 0.9 1.0 4.1 1.7 4.2 -0.3 2.5

 II 0.5 1.6 1.1 4.2 1.5 3.6 -0.2 2.1

 III 2.6 2.9 0.3 4.7 2.3 2.0 1.5 1.8

 IV 2.6 2.4 -0.3 3.6 -0.4 0.9 3.6 2.0

 ANNUAL 1.4 2.0 0.5 4.1 1.3 2.7 1.2 2.1

2008 I 3.5 2.8 -0.6 3.5 -0.7 0.0 4.3 1.6

 II 3.4 2.1 -1.3 3.6 -0.7 0.1 3.6 1.5

 III 2.2 0.3 -1.9 3.9 -1.3 1.6 3.6 2.4

 IV 2.2 -1.8 -4.0 r3.9 r2.3 r1.7 r2.7 2.1

 ANNUAL 2.8 0.8 -1.9 3.7 r-0.2 0.9 3.5 1.9

2009 I r1.9 r-4.0 -5.8 r4.1 r4.3 r2.2 r2.3 2.2

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

See footnotes following Table 6. June 4, 2009

r=revised Source: Bureau of Labor Statistics
12

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

seasonally adjusted

 Real

 Year Output per Hours Compensa- compensa- Unit 

 and hour of of all tion per tion per labor

 quarter all persons Output persons hour (1) hour (2) costs

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

 Indexes 1992=100

2007 I 176.9 148.0 83.7 176.6 123.7 99.8

 II 178.2 149.3 83.8 176.3 122.3 99.0

 III 180.1 150.3 83.4 177.0 122.0 98.2

 IV 181.6 150.4 82.8 179.6 122.1 98.9

 ANNUAL 179.2 149.5 83.4 177.4 122.5 99.0

2008 I 182.8 149.9 82.0 181.1 121.7 99.1

 II 181.6 148.0 81.5 182.7 121.5 100.6

 III 180.3 144.4 80.1 185.1 121.2 102.7

 IV r178.2 r137.3 77.0 r190.3 r127.4 r106.8

 ANNUAL r180.7 r144.9 80.2 r184.7 r122.8 r102.2

2009 I r177.0 r129.1 r73.0 r196.4 r132.3 r111.0

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

 Percent change from previous quarter at annual rate(5)

2007 I 3.7 1.8 -1.9 5.0 1.1 1.2

 II 3.0 3.4 0.4 -0.5 -4.5 -3.4

 III 4.4 2.7 -1.6 1.4 -1.0 -2.9

 IV 3.3 0.3 -2.9 6.1 0.3 2.7

 ANNUAL 3.2 1.3 -1.8 3.6 0.7 0.4

2008 I 2.6 -1.2 -3.7 3.4 -1.1 0.8

 II -2.5 -5.2 -2.7 3.5 -0.9 6.2

 III -2.9 -9.3 -6.5 5.4 -0.7 8.6

 IV r-4.6 r-18.3 -14.4 r11.8 r22.0 r17.1

 ANNUAL 0.9 r-3.1 -3.9 r4.1 r0.3 r3.2

2009 I r-2.7 r-21.7 r-19.5 r13.4 r16.1 r16.6

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

 Percent change from corresponding quarter of previous year

2007 I 2.5 0.4 -2.0 3.5 1.0 0.9

 II 3.3 1.3 -2.0 4.1 1.4 0.8

 III 3.3 1.6 -1.6 3.8 1.5 0.5

 IV 3.6 2.0 -1.5 2.9 -1.0 -0.6

 ANNUAL 3.2 1.3 -1.8 3.6 0.7 0.4

2008 I 3.3 1.3 -2.0 2.6 -1.6 -0.7

 II 1.9 -0.9 -2.7 3.6 -0.7 1.6

 III 0.1 -3.9 -4.0 4.6 -0.6 4.5

 IV r-1.9 r-8.7 -7.0 r6.0 r4.4 r8.0

 ANNUAL 0.9 r-3.1 -3.9 r4.1 r0.3 r3.2

2009 I r-3.2 r-13.9 r-11.0 r8.4 r8.7 r12.0

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

See footnotes following Table 6. June 4, 2009

r=revised Source: Bureau of Labor Statistics
13

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

seasonally adjusted

 Real

 Year Output per Hours Compensa- compensa- Unit 

 and hour of of all tion per tion per labor

 quarter all persons Output persons hour (1) hour (2) costs

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

 Indexes 1992=100

2007 I 204.1 180.4 88.4 172.7 121.0 84.6

 II 206.9 183.0 88.5 172.5 119.6 83.4

 III 209.7 185.0 88.2 173.0 119.3 82.5

 IV 212.9 185.7 87.2 175.7 119.4 82.5

 ANNUAL 208.4 183.5 88.1 173.5 119.8 83.2

2008 I 213.6 185.3 86.8 176.5 118.7 82.7

 II 211.1 181.8 86.1 178.7 118.9 84.7

 III 212.2 178.1 83.9 181.7 119.1 85.6

 IV r204.3 r165.1 80.8 r186.3 r124.8 r91.2

 ANNUAL r210.4 r177.6 84.4 r180.7 r120.2 r85.9

2009 I r198.8 r150.4 r75.7 r193.3 r130.2 r97.2

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

 Percent change from previous quarter at annual rate(5)

2007 I 4.2 1.2 -2.9 6.2 2.3 1.9

 II 5.6 6.0 0.4 -0.5 -4.5 -5.8

 III 5.6 4.4 -1.1 1.3 -1.0 -4.1

 IV 6.3 1.4 -4.5 6.3 0.5 0.0

 ANNUAL 4.0 1.8 -2.1 4.2 1.3 0.2

2008 I 1.2 -0.9 -2.0 2.0 -2.4 0.8

 II -4.6 -7.3 -2.9 5.1 0.6 10.1

 III 2.2 -7.9 -9.9 6.9 0.7 4.5

 IV r-14.1 r-26.2 -14.1 r10.5 r20.5 r28.6

 ANNUAL r0.9 r-3.3 -4.2 r4.2 0.3 r3.2

2009 I r-10.4 -31.0 r-23.0 r15.8 r18.6 r29.3

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

 Percent change from corresponding quarter of previous year

2007 I 2.6 0.3 -2.3 4.2 1.7 1.5

 II 4.1 1.4 -2.6 4.8 2.1 0.7

 III 4.0 2.3 -1.6 4.6 2.3 0.6

 IV 5.4 3.2 -2.1 3.3 -0.7 -2.0

 ANNUAL 4.0 1.8 -2.1 4.2 1.3 0.2

2008 I 4.6 2.7 -1.8 2.2 -1.9 -2.3

 II 2.0 -0.7 -2.6 3.6 -0.6 1.6

 III 1.2 -3.7 -4.9 5.0 -0.2 3.8 

 IV -4.0 r-11.1 -7.3 r6.1 r4.5 r10.5

 ANNUAL r0.9 r-3.3 -4.2 r4.2 0.3 r3.2

2009 I r-6.9 r-18.8 r-12.8 r9.5 r9.7 r17.6

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

See footnotes following Table 6. June 4, 2009

r=revised Source: Bureau of Labor Statistics
14

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

seasonally adjusted

 Real

 Year Output per Hours Compensa- compensa- Unit 

 and hour of of all tion per tion per labor

 quarter all persons Output persons hour (1) hour (2) costs

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

 Indexes 1992=100

2007 I 151.3 115.9 76.6 181.6 127.2 120.0

 II 151.4 116.0 76.7 181.3 125.7 119.8

 III 152.6 116.3 76.2 182.0 125.5 119.2

 IV 152.3 116.0 76.2 184.7 125.6 121.3

 ANNUAL 151.9 116.1 76.4 182.4 126.0 120.1

2008 I 154.3 115.6 74.9 187.3 125.9 121.4

 II 154.2 114.8 74.4 187.6 124.7 121.6

 III 150.1 111.6 74.4 189.1 123.9 126.0

 IV r152.4 r108.8 71.4 r195.5 r130.9 r128.3

 ANNUAL r152.8 r112.7 73.8 r189.8 r126.3 r124.3

2009 I r153.1 r105.5 r68.9 r200.3 r134.9 r130.9

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

 Percent change from previous quarter at annual rate(5)

2007 I 2.4 2.4 0.0 2.8 -1.0 0.4

 II 0.3 0.7 0.4 -0.5 -4.5 -0.7

 III 3.4 0.8 -2.5 1.4 -0.9 -1.9

 IV -0.9 -0.9 0.0 6.1 0.3 7.0

 ANNUAL 2.0 0.9 -1.1 2.4 -0.4 0.4

2008 I 5.4 -1.4 -6.5 5.8 1.2 0.4

 II -0.4 -2.8 -2.5 0.5 -3.8 0.9

 III -10.2 -10.6 -0.5 3.4 -2.6 15.1

 IV r6.1 r-9.8 -15.0 r14.3 r24.7 r7.6

 ANNUAL 0.6 -2.9 -3.4 r4.1 r0.2 r3.5

2009 I r1.9 r-11.6 r-13.2 r10.1 r12.8 r8.1

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

 Percent change from corresponding quarter of previous year

2007 I 2.3 0.7 -1.6 2.1 -0.3 -0.1

 II 2.1 1.2 -0.9 2.8 0.1 0.7

 III 2.5 0.9 -1.6 2.3 0.0 -0.2

 IV 1.3 0.8 -0.5 2.4 -1.5 1.1

 ANNUAL 2.0 0.9 -1.1 2.4 -0.4 0.4

2008 I 2.0 -0.2 -2.2 3.2 -1.0 1.1

 II 1.9 -1.1 -2.9 3.4 -0.8 1.5

 III -1.7 -4.0 -2.4 3.9 -1.2 5.7

 IV r0.0 r-6.2 -6.3 r5.9 r4.3 r5.8

 ANNUAL 0.6 -2.9 -3.4 r4.1 r0.2 r3.5

2009 I r-0.8 r-8.8 -8.0 r6.9 r7.1 r7.8

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

See footnotes following Table 6. June 4, 2009

r=revised Source: Bureau of Labor Statistics
15

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

and prices, seasonally adjusted

 Output Hourly Real Unit Total Unit Implicit

 Year per all- compen- hourly Unit non- unit pro- price

 and employee Employee sation compen- labor labor costs fits deflator

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

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

 Indexes 1992=100

2007 I 145.4 177.2 121.9 170.0 119.1 116.9 117.6 117.1 172.4 122.1

 II 146.7 179.1 122.0 171.1 118.6 116.6 117.9 116.9 173.1 122.0

 III 147.8 180.2 121.9 172.8 119.1 116.9 118.2 117.2 167.4 121.7

 IV 148.3 181.2 122.2 174.9 118.9 117.9 119.3 118.3 156.4 121.7

 ANNUAL 147.1 179.4 122.0 172.2 118.9 117.1 118.3 117.4 167.3 121.9

2008 I 148.1 180.6 121.9 176.1 118.4 118.9 119.4 119.0 150.8 121.8

 II 151.2 183.2 121.2 177.4 118.0 117.3 119.8 118.0 147.8 120.6

 III 153.6 184.2 120.0 180.0 117.9 117.3 121.3 118.3 156.7 121.8

 IV r151.9 r179.0 117.9 r182.1 r121.9 r119.9 r124.9 r121.2 r144.1 123.3

 ANNUAL r151.2 r181.8 r120.2 r178.9 r119.0 r118.3 r121.3 r119.1 r149.9 121.9

2009 I 151.1 173.2 114.7 184.9 124.5 122.4 128.9 124.1 136.1 125.2

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

 Percent change from previous quarter at annual rate(5)

2007 I -0.6 -0.2 0.4 5.3 1.4 5.9 3.8 5.4 -4.5 4.0

 II 3.8 4.2 0.4 2.6 -1.5 -1.1 0.9 -0.6 1.7 -0.3

 III 3.0 2.7 -0.4 4.0 1.6 0.9 1.2 1.0 -12.6 -0.8

 IV 1.2 2.1 0.9 5.0 -0.8 3.7 3.7 3.7 -23.8 0.0

 ANNUAL 0.7 1.4 0.7 4.1 1.2 3.4 3.2 3.3 -8.8 1.7

2008 I -0.4 -1.4 -0.9 2.7 -1.7 3.2 0.3 2.4 -13.6 0.5

 II 8.5 6.0 -2.3 3.1 -1.3 -5.0 1.2 -3.4 -7.7 -3.8

 III 6.4 2.3 -3.9 6.1 -0.1 -0.3 5.4 1.2 26.5 3.8

 IV r-4.3 r-10.9 -6.9 r4.7 r14.2 r9.4 r12.2 r10.1 r-28.5 5.0

 ANNUAL 2.8 1.3 -1.5 3.9 r0.0 1.1 2.6 1.5 -10.4 0.0

2009 I -2.1 -12.3 -10.4 6.3 8.8 8.5 13.7 10.0 -20.5 6.4

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

 Percent change from corresponding quarter of previous year

2007 I -0.4 0.7 1.1 3.5 1.1 4.0 4.1 4.0 -5.6 2.7

 II 0.7 1.6 0.9 4.1 1.4 3.4 2.9 3.2 -5.6 2.0

 III 0.8 1.2 0.4 4.6 2.3 3.8 3.2 3.7 -13.5 1.2

 IV 1.9 2.2 0.3 4.2 0.2 2.3 2.4 2.3 -10.3 0.7

 ANNUAL 0.7 1.4 0.7 4.1 1.2 3.4 3.2 3.3 -8.8 1.7

2008 I 1.9 1.9 0.0 3.6 -0.6 1.6 1.5 1.6 -12.5 -0.2

 II 3.0 2.3 -0.7 3.7 -0.6 0.6 1.6 0.9 -14.6 -1.1

 III 3.9 2.2 -1.6 4.2 -1.0 0.3 2.6 1.0 -6.4 0.1

 IV r2.4 r-1.2 -3.5 r4.1 r2.6 1.7 r4.7 2.5 r-7.8 1.3

 ANNUAL 2.8 1.3 -1.5 3.9 r0.0 1.1 2.6 1.5 -10.4 0.0

2009 I 2.0 -4.1 -5.9 5.0 5.2 3.0 8.0 4.3 -9.7 2.8

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

See footnotes following Table 6. June 4, 2009

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. 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 –1.5 and +1.3 index points approximately 95 percent of the time. This interval is 

based on the performance of this measure between the fourth quarter of 1995 and the fourth quarter of 2008. 

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 1978-2008 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.