Transmission of material in this release is embargoed until USDL 23-2529 

8:30 a.m. (ET) Wednesday, December 6, 2023 

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

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

PRODUCTIVITY AND COSTS

 Third Quarter 2023, Revised

Nonfarm business sector labor productivity increased 5.2 percent in the third quarter of 2023, the 

U.S. Bureau of Labor Statistics reported today, as output increased 6.1 percent and hours worked 

increased 0.9 percent. (All quarterly percent changes in this release are seasonally adjusted annual rates.) 

The increase in labor productivity is the highest rate since the third quarter of 2020, when productivity 

increased 5.7 percent. From the same quarter a year ago, nonfarm business sector labor productivity 

increased 2.4 percent. (See chart 1 and table A1.) 

Unit labor costs in the nonfarm business sector decreased 1.2 percent in the third quarter of 2023, 

reflecting a 3.9-percent increase in hourly compensation and a 5.2-percent increase in productivity. Unit 

labor costs increased 1.6 percent over the last four quarters. (See chart 2 and tables A1 and 2.) 

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

hourly compensation tend to increase unit labor costs and increases in productivity tend to reduce them. 

Real hourly compensation, which takes into account consumer prices, increased 0.3 percent in the third

quarter of 2023, and increased 0.4 percent over the last four quarters. 

Labor productivity, or output per hour, is calculated by dividing an index of real output by an index of 

hours worked by all workers, including employees, proprietors, and unpaid family workers. During the 

current business cycle, starting in the fourth quarter of 2019, labor productivity has grown at an annual 

Chart 1. Labor productivity, nonfarm business, 2019Q1 – 2023Q3

-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

16.0

18.0

20.0

22.0

2019 2020 2021 2022 2023

From previous quarter, annual rate

From same quarter a year ago

Percent change Percent change

Chart 2. Unit labor costs, nonfarm business, 2019Q1 – 2023Q3

-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

16.0

18.0

20.0

22.0

2019 2020 2021 2022 2023

From previous quarter, annual rate

From same quarter a year ago
 -2-

 

rate of 1.5 percent, as output grew at a 2.2-percent per year rate, outpacing hours worked, which grew at 

a 0.7-percent annual rate. (See chart 3.) The 1.5-percent annual rate of productivity growth in the current 

business cycle thus far is the same rate as the previous business cycle from the fourth quarter of 2007 

through fourth-quarter 2019, and is below the long-term rate since the first quarter of 1947 (2.1 percent). 

Manufacturing sector labor productivity declined 0.8 percent in the third quarter of 2023, as output 

decreased 0.3 percent and hours worked increased 0.5 percent. In the durable manufacturing sector, 

productivity decreased 1.8 percent, reflecting a 1.6-percent increase in output and a 3.4-percent increase 

in hours worked. Nondurable manufacturing sector productivity increased 2.3 percent, as output 

decreased 2.1 percent and hours worked decreased 4.2 percent. Total manufacturing sector productivity 

decreased 0.7 percent from the same quarter a year ago. (See tables A1, 3, 4, and 5.) 

Unit labor costs in the total manufacturing sector increased 6.2 percent in the third quarter of 2023, 

reflecting a 5.4-percent increase in hourly compensation and a 0.8-percent decrease in productivity. 

Manufacturing unit labor costs increased 5.2 percent from the same quarter a year ago. (See tables A1 

and 3.) 

84

86

88

90

92

94

96

98

100

102

104

106

108

110

2019 Q4 2020 Q2 2020 Q4 2021 Q2 2021 Q4 2022 Q2 2022 Q4 2023 Q2

Output Hours Worked Labor Productivity

Chart 3. Labor Productivity, Output, and Hours Worked index series, nonfarm business, 2019 Q4 – 2023 Q3

Index (2019 Q4=100)
 -3-

 

Manufacturing sector labor productivity has increased at an annual rate of 0.1 percent during the current 

business cycle, which began in the fourth quarter of 2019. This rate reflects output and hours worked 

growing at annual rates of 0.2 percent and 0.1 percent, respectively. (See chart 4.) This slow 

productivity growth rate follows the 0.0-percent annual rate of growth during the last business cycle that 

spanned the fourth quarter of 2007 through fourth-quarter 2019, and is below the long-term rate since 

the first quarter of 1987 of 2.1 percent. 

The concepts, sources, and methods used for the manufacturing output series differ from those used in 

the business and nonfarm business output series; these output measures are not directly comparable. See 

the Technical Notes for a more detailed explanation. (See page 8.) 

Preliminary third-quarter 2023 measures were announced today for the nonfinancial corporate 

sector. (See table A2.) Productivity increased 2.2 percent in the third quarter of 2023 as output and 

hours worked increased 3.1 percent and 0.8 percent, respectively. Productivity increased 1.2 percent in 

the nonfinancial corporate sector over the last four quarters. Unit profits of nonfinancial corporations 

increased 11.1 percent in the third quarter of 2023 and decreased 1.7 percent over the last four quarters. 

(See table 6.)

Revised measures

Measures released today are based on more recent source data than were available for the preliminary 

report. Regular updates of source data from the BLS, the Bureau of Economic Analysis (BEA), and the 

Board of Governors of the Federal Reserve System are reflected in data for the second and third quarters 

of 2023. Measures of output for the manufacturing sectors incorporate revised annual benchmark data 

from 1987 to 2021 released November 21 by BLS. The most notable revisions to manufacturing output 

from the incorporation of these data occurred with several upward revisions in 2018 and 2019 of 

between 0.1 and 0.3 percentage point and several downward revisions in 2020 and 2021 of between 0.1 

and 0.3 percentage point. 

84

86

88

90

92

94

96

98

100

102

104

106

2019 Q4 2020 Q2 2020 Q4 2021 Q2 2021 Q4 2022 Q2 2022 Q4 2023 Q2

Output Hours Worked Labor Productivity

Chart 4. Labor Productivity, Output, and Hours Worked index series, manufacturing, 2019 Q4 – 2023 Q3

Index (2019 Q4=100)
 -4-

Table B1 presents revised and previously published productivity and related measures for the nonfarm 

business, business, and manufacturing sectors for the third quarter of 2023.

In the third quarter of 2023, nonfarm business sector labor productivity increased 5.2 percent rather 

than the preliminary estimate of a 4.7-percent increase, reflecting a 0.2-percentage point upward revision 

to output and a 0.2-percentage point downward revision to hours worked. Unit labor costs were revised 

down 0.4 percentage point, reflecting a 0.5-percentage point upward revision to labor productivity; 

hourly compensation was not revised.

In the manufacturing sector, productivity decreased 0.8 percent rather than decreasing 0.7 percent as 

previously reported, reflecting a 0.2-percentage point downward revision to output and a 0.2-percentage 

point downward revision to hours worked. Durable manufacturing productivity decreased 1.8 percent 

rather than decreasing 1.4 percent as previously reported, and nondurable manufacturing productivity 

was revised up to an increase of 2.3 percent from the previously-reported increase of 2.1 percent. Total 

manufacturing unit labor costs were revised down 0.8 percentage point to an increase of 6.2 percent, the 

combined effect of a 0.8-percentage point downward revision to hourly compensation and a 0.1-

percentage point downward revision to productivity.

Table B2 shows revised and previously published productivity and related measures for the nonfarm 

business, business, manufacturing, and nonfinancial corporate sectors for the second quarter of 2023.

In the second quarter of 2023, labor productivity, output, and hours worked were unrevised for the 

nonfarm business sector. Unit labor costs increased 2.6 percent, rather than increasing 3.2 percent as 

previously reported, due to a 0.7-percentage point downward revision to hourly compensation. 

In the manufacturing sector, productivity was revised up 0.2 percentage point to an increase of 3.3

percent. Unit labor costs were revised down to an increase of 4.7 percent from the previously-reported 

increase of 6.3 percent. This revision is mainly due to a 1.6-percentage point downward revision to 

hourly compensation.

In the nonfinancial corporate sector, productivity increased 2.2 percent rather than increasing 2.1

percent as previously reported. Unit labor costs were not revised.

Quarterly and annual data for all sectors for recent years appear in tables 1-6. Full historical annual and 

quarterly measures can be found at www.bls.gov/productivity/tables/.

______________

The preliminary Productivity and Costs news release for fourth-quarter and annual averages 2023

is scheduled to be released on Thursday, February 1, 2024, at 8:30 a.m. (ET).

Calendar year 2024 release dates for Productivity and Costs news releases are now available at 

www.bls.gov/schedule/news_release/prod2.htm.
 -5-

Upcoming Method Change

Beginning with the Productivity and Costs news release scheduled for March 7, 2024, estimates of hours 

worked by self-employed workers and unpaid family workers will reflect a method change to reduce 

volatility of the estimates. Self-employed and unpaid family workers accounted for 7.4 percent of hours 

worked in the nonfarm business sector in 2022. The method change will remove statistically insignificant 

variability during seasonal adjustment of the Current Population Survey (CPS) source data. In addition, 

volatility associated with respondent turnover will be reduced by adjusting respondent weights. These two 

adjustments by the BLS productivity program will dampen noise in the series without losing important 

information about cyclical changes in hours worked by self-employed and unpaid family workers. A more 

detailed discussion of the upcoming changes is forthcoming in the Monthly Labor Review in December 

2023.
-6-

Table A1. Labor productivity growth and related measures - revised third-quarter 2023

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

Sector Percent change from:

Labor 

productivity Output

Hours 

worked

Hourly 

compensation

Real hourly 

compensation

Unit labor 

costs

Nonfarm business Previous quarter 5.2 6.1 0.9 3.9 0.3 -1.2

A year ago 2.4 3.2 0.8 4.0 0.4 1.6

Business Previous quarter 5.2 6.0 0.8 4.0 0.4 -1.2

A year ago 2.5 3.2 0.7 4.0 0.5 1.5

Manufacturing Previous quarter -0.8 -0.3 0.5 5.4 1.8 6.2

A year ago -0.7 -0.8 -0.1 4.4 0.9 5.2

Durable 

manufacturing

Previous quarter -1.8 1.6 3.4 3.4 -0.2 5.3

A year ago -0.8 0.2 1.0 3.8 0.2 4.6

Nondurable 

manufacturing

Previous quarter 2.3 -2.1 -4.2 8.8 5.0 6.4

A year ago 0.2 -1.9 -2.1 5.5 1.9 5.3

Table A2. Labor productivity growth and related measures - preliminary third-quarter 2023

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

Sector Percent change from:

Labor 

productivity Output

Hours 

worked

Hourly 

compensation

Real hourly 

compensation

Unit labor 

costs

Nonfinancial 

corporate

Previous quarter 2.2 3.1 0.8 3.9 0.3 1.7

A year ago 1.2 2.1 0.9 4.5 0.9 3.3

Table B1. Labor productivity growth and related measures - revised and previously published third-quarter 2023

(percent change from previous quarter at annual rate)

Sector

Labor 

productivity Output

Hours 

worked

Hourly 

compensation

Real hourly 

compensation

Unit labor 

costs

Nonfarm business Revised 5.2 6.1 0.9 3.9 0.3 -1.2

Previously published 4.7 5.9 1.1 3.9 0.3 -0.8

Business Revised 5.2 6.0 0.8 4.0 0.4 -1.2

Previously published 4.7 5.7 1.0 4.0 0.4 -0.7

Manufacturing Revised -0.8 -0.3 0.5 5.4 1.8 6.2

Previously published -0.7 -0.1 0.7 6.2 2.5 7.0

Durable 

manufacturing

Revised -1.8 1.6 3.4 3.4 -0.2 5.3

Previously published -1.4 2.3 3.8 4.2 0.6 5.7

Nondurable 

manufacturing

Revised 2.3 -2.1 -4.2 8.8 5.0 6.4

Previously published 2.1 -2.4 -4.4 9.4 5.6 7.1
-7-

Table B2. Labor productivity growth and related measures - revised and previously published second-quarter 2023

(percent change from previous quarter at annual rate)

Sector

Labor 

productivity Output

Hours 

worked

Hourly 

compensation

Real hourly 

compensation

Unit labor 

costs

Nonfarm business Revised 3.6 2.0 -1.5 6.2 3.4 2.6

Previously published 3.6 2.0 -1.5 6.9 4.1 3.2

Business Revised 3.4 2.0 -1.4 5.8 3.1 2.4

Previously published 3.4 2.0 -1.4 6.5 3.7 3.0

Nonfinancial 

corporate

Revised 2.2 1.2 -0.9 7.2 4.4 4.9

Previously published 2.1 1.2 -0.9 7.1 4.3 4.9

Manufacturing Revised 3.3 1.1 -2.1 8.1 5.2 4.7

Previously published 3.1 1.0 -2.1 9.7 6.8 6.3

Durable 

manufacturing

Revised 5.2 4.0 -1.2 7.8 4.9 2.4

Previously published 5.4 4.2 -1.2 10.2 7.3 4.5

Nondurable 

manufacturing

Revised 2.0 -1.7 -3.6 8.4 5.6 6.3

Previously published 1.5 -2.1 -3.6 8.5 5.7 6.9
-8-

TECHNICAL NOTES

Labor Hours

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

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

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

program, which provides monthly survey data on the number of jobs held by and hours paid to wage and 

salary workers in nonfarm establishments, counting a person who is employed by two or more 

establishments at each place of employment. As of the February 3, 2023 Employment Situation release, 

the CES program has updated the national nonfarm payroll series to the 2022 North American Industry 

Classification System (NAICS). The BLS Major Sector Productivity program will be remaining on a 

NAICS 2017 basis for the time being by converting NAICS 2022 data from CES back to a NAICS 2017 

basis using ratios published on the CES website and based on the Quarterly Census of Employment and 

Wages (QCEW). Hours of paid time off are removed from hours paid using data from the National 

Compensation Survey (NCS) for 1996 forward and data from the BLS Hours at Work survey, conducted 

for this purpose, prior to 1990. Between 1990 and 1995, hours of paid time off are removed using a 

combination of NCS and Hours at Work survey data. Off-the-clock hours are added, yielding hours 

worked, using data from the Current Population Survey (CPS). 

Data from the CPS are used to estimate hours worked for farm labor, nonfarm proprietors, and nonfarm 

unpaid family workers. Using CPS information on employment and hours worked at primary jobs and 

all other jobs, separately, the BLS productivity measures assign all hours worked to the appropriate 

industrial sector. Hours for government enterprises are derived from the CPS, the CES, and the National 

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

Department of Commerce. 

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

on the BLS website (www.bls.gov/productivity/tables/total-economy-hours-employment.xlsx).

Output

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

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

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

worked. Business output accounted for about 77 percent of the value of GDP in 2022. Nonfarm 

business, which excludes farming, accounted for about 76 percent of GDP in 2022.

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

deflating current-dollar industry value of production data from the U.S. Bureau of the Census with 

deflators from the BLS. These deflators are based on data from the BLS Producer Price Index program 

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

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

industrial production prepared monthly by the Board of Governors of the Federal Reserve System, 

adjusted to be consistent with annual indexes of manufacturing sector output prepared by BLS. 

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

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

outputs from GDP: general government; nonprofit institutions; 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 

52 percent of the value of GDP in 2022.
-9-

Labor Productivity

The measure describes the relationship between real output and the labor time involved in its production. 

Measures of labor productivity growth show the changes from period to period in the amount of goods 

and services produced per hour worked. They reflect the joint effects of many influences, including

changes in technology; capital investment; level of output; utilization of capacity, energy, and materials; 

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

Labor Compensation

The measure includes accrued wages and salaries, supplements, employer contributions to employee 

benefit plans, and taxes. Estimates of labor compensation by major sector, required for measures of 

hourly compensation and unit labor costs, are based primarily on employee compensation data from the 

NIPA, prepared by the BEA. The compensation of employees in general government, nonprofit 

institutions and households are subtracted from compensation of employees in domestic industries to 

derive employee compensation for the business sector. The labor compensation of proprietors cannot be 

explicitly identified and must be estimated. This is done by assuming that proprietors have the same 

hourly compensation as employees in the same sector. The quarterly labor productivity and cost 

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

Unit Labor Costs

These measures describe the relationship between compensation per hour and labor productivity, or real 

output per hour, and can be used as an indicator of inflationary pressure on producers. Increases in 

hourly compensation increase unit labor costs; labor productivity increases offset compensation 

increases and lower unit labor costs. 

Presentation of the data

The quarterly data in this release are presented in three ways: as percent changes from the previous 

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

previous year, and as index number series where 2017=100. Annual data are presented both as index 

number series and percent changes from the previous year. 

The index numbers and rates of change reported in the productivity and costs news release are rounded 

to one decimal place. All percent changes in this release and on the BLS web site are calculated using 

index numbers to three decimal places. A complete historical series of these index numbers are available 

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

Productivity (Telephone 202-691-5606 or email productivity@bls.gov).

For a more detailed explanation of methodology see the Handbook of Methods at 

www.bls.gov/opub/hom/msp/home.htm.

If you are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access 

telecommunications relay services.
-10-

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

seasonally adjusted.

 Value-

 Real added

 Hourly hourly Unit output

Year Labor compen- compen- Unit nonlabor price

and produc- Hours sation sation labor payments deflator

quarter tivity Output worked (1) (2) costs (3) (4)

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

 Percent change from previous quarter at annual rate (5)

2023 III 5.2 r 6.0 r 0.8 r 4.0 0.4 -1.2 r 8.7 r 3.1 r

 II 3.4 2.0 -1.4 5.8 r 3.1 r 2.4 r -0.6 r 1.1 

 I -0.6 2.1 2.7 6.5 2.7 7.1 -1.3 3.3 

2022 ANNUAL -1.8 1.9 3.8 3.8 -4.0 5.7 10.5 7.8 

2022 IV 2.0 2.9 0.9 -0.1 -4.1 -2.0 10.9 3.5 

 III 0.2 2.7 2.5 6.9 1.3 6.7 0.7 4.0 

 II -3.4 -1.3 2.1 1.9 -7.2 5.4 17.2 10.5 

 I -6.7 -3.0 4.0 0.9 -7.7 8.2 11.4 9.6 

2021 ANNUAL 1.8 7.2 5.3 4.9 0.1 3.1 7.9 5.1 

2021 IV 2.8 8.8 5.8 6.1 -2.4 3.2 14.5 8.0 

 III -2.0 3.3 5.4 6.1 -0.5 8.3 4.3 6.6 

 II 1.1 7.2 6.0 7.3 -0.6 6.2 8.7 7.3 

 I 1.9 6.7 4.6 -0.3 -4.5 -2.2 19.9 6.6 

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

 Percent change from corresponding quarter of previous year

2023 III 2.5 r 3.2 0.7 r 4.0 r 0.5 r 1.5 r 4.3 r 2.7 r

 II 1.2 2.4 1.2 4.8 r 0.7 r 3.5 r 2.3 r 3.0 

 I -0.5 1.6 2.0 3.8 -1.9 4.2 6.6 5.3 

2022 ANNUAL -1.8 1.9 3.8 3.8 -4.0 5.7 10.5 7.8 

2022 IV -2.0 0.3 2.4 2.4 -4.5 4.5 9.9 6.9 

 III -1.8 1.7 3.6 3.9 -4.1 5.9 10.8 8.0 

 II -2.4 1.8 4.3 3.7 -4.5 6.3 11.8 8.6 

 I -1.3 4.0 5.3 5.1 -2.8 6.5 9.7 7.8 

2021 ANNUAL 1.8 7.2 5.3 4.9 0.1 3.1 7.9 5.1 

2021 IV 0.9 6.5 5.5 4.8 -2.0 3.8 11.7 7.1 

 III -0.8 5.6 6.4 5.6 0.2 6.4 4.9 5.8 

 II 1.4 15.2 13.6 2.7 -2.1 1.3 11.1 5.3 

 I 5.7 2.5 -3.1 6.5 4.4 0.8 4.2 2.2 

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

 Indexes 2017=100

2023 III 111.1 r 116.8 r 105.1 r 132.7 r 105.9 r 119.4 r 125.2 r 121.9 r

 II 109.7 115.1 104.9 131.4 r 105.8 r 119.8 r 122.6 r 121.0 

 I 108.8 114.6 105.3 129.5 105.0 119.1 122.8 120.7 

2022 ANNUAL 108.8 113.1 103.9 126.4 105.6 116.2 119.6 117.6 

2022 IV 108.9 114.0 104.6 127.5 104.4 117.0 123.2 119.7 

 III 108.4 113.2 104.4 127.5 105.5 117.6 120.1 118.7 

 II 108.4 112.4 103.7 125.4 105.1 115.7 119.8 117.5 

 I 109.3 112.8 103.2 124.8 107.1 114.2 115.2 114.6 

2021 ANNUAL 110.9 110.9 100.0 121.8 109.9 109.8 108.2 109.1 

2021 IV 111.2 113.6 102.2 124.5 109.3 112.0 112.1 112.0 

 III 110.4 111.3 100.7 122.7 109.9 111.1 108.4 109.9 

 II 111.0 110.4 99.4 120.9 110.1 108.9 107.2 108.2 

 I 110.7 108.5 98.0 118.8 110.2 107.3 105.0 106.3 

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

See footnotes following Table 6. December 6, 2023

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

Table 2. Nonfarm business sector: Labor productivity, hourly compensation, unit labor costs, and

prices, seasonally adjusted.

 Value-

 Real added

 Hourly hourly Unit output

Year Labor compen- compen- Unit nonlabor price

and produc- Hours sation sation labor payments deflator

quarter tivity Output worked (1) (2) costs (3) (4)

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

 Percent change from previous quarter at annual rate (5)

2023 III 5.2 r 6.1 r 0.9 r 3.9 0.3 -1.2 r 9.2 r 3.2 r

 II 3.6 2.0 -1.5 6.2 r 3.4 r 2.6 r -0.1 r 1.4 

 I -0.8 1.8 2.6 6.5 2.7 7.4 -0.3 3.9 

2022 ANNUAL -1.9 2.1 4.0 3.7 -4.1 5.6 10.1 7.5 

2022 IV 1.6 2.8 1.3 -0.5 -4.5 -2.0 11.0 3.5 

 III 0.4 2.8 2.4 7.1 1.4 6.6 0.6 3.9 

 II -3.6 -1.1 2.6 1.5 -7.6 5.3 16.1 9.9 

 I -6.3 -2.8 3.7 1.1 -7.5 8.0 10.3 9.0 

2021 ANNUAL 1.7 7.2 5.5 4.9 0.0 3.1 7.2 4.8 

2021 IV 2.8 8.9 5.9 6.0 -2.6 3.1 15.8 8.4 

 III -2.4 3.4 5.9 5.6 -0.9 8.2 4.2 6.4 

 II 0.8 7.3 6.4 7.0 -0.8 6.1 6.5 6.3 

 I 1.6 6.5 4.9 -0.4 -4.6 -2.0 19.3 6.5 

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

 Percent change from corresponding quarter of previous year

2023 III 2.4 r 3.2 r 0.8 4.0 r 0.4 r 1.6 r 4.8 r 3.0 

 II 1.2 2.4 1.2 4.8 r 0.7 r 3.6 r 2.7 r 3.2 

 I -0.6 1.6 2.2 3.6 -2.1 4.2 6.6 5.3 

2022 ANNUAL -1.9 2.1 4.0 3.7 -4.1 5.6 10.1 7.5 

2022 IV -2.0 0.4 2.5 2.3 -4.6 4.4 9.4 6.5 

 III -1.7 1.8 3.6 3.9 -4.1 5.7 10.5 7.8 

 II -2.4 2.0 4.5 3.5 -4.7 6.1 11.5 8.4 

 I -1.3 4.1 5.5 4.9 -3.0 6.3 9.1 7.5 

2021 ANNUAL 1.7 7.2 5.5 4.9 0.0 3.1 7.2 4.8 

2021 IV 0.7 6.5 5.8 4.5 -2.2 3.8 11.3 6.9 

 III -0.8 5.7 6.5 5.6 0.2 6.5 3.9 5.4 

 II 1.1 15.1 13.8 2.5 -2.3 1.4 9.8 4.8 

 I 5.8 2.4 -3.2 6.6 4.5 0.8 4.1 2.2 

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

 Indexes 2017=100

2023 III 111.0 r 117.0 r 105.4 r 132.5 r 105.8 r 119.4 r 124.8 r 121.7 r

 II 109.6 115.3 105.2 131.2 r 105.7 r 119.7 r 122.1 r 120.8 

 I 108.6 114.7 105.6 129.2 104.8 119.0 122.1 120.3 

2022 ANNUAL 108.8 113.3 104.1 126.3 105.4 116.0 118.7 117.2 

2022 IV 108.8 114.2 104.9 127.2 104.1 116.9 122.2 119.2 

 III 108.4 113.4 104.6 127.4 105.3 117.5 119.1 118.2 

 II 108.3 112.6 104.0 125.2 105.0 115.6 118.9 117.0 

 I 109.3 112.9 103.3 124.8 107.0 114.1 114.5 114.3 

2021 ANNUAL 110.9 111.0 100.1 121.8 109.9 109.9 107.8 109.0 

2021 IV 111.1 113.7 102.4 124.4 109.1 112.0 111.8 111.9 

 III 110.3 111.4 100.9 122.6 109.9 111.1 107.7 109.6 

 II 111.0 110.4 99.5 120.9 110.1 109.0 106.6 107.9 

 I 110.8 108.5 98.0 118.9 110.4 107.3 105.0 106.3 

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

See footnotes following Table 6. December 6, 2023

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

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

seasonally adjusted.

 Real

Year Labor Hourly hourly Unit

and produc- Hours compensa- compensa- labor

quarter tivity Output worked tion (1) tion (2) costs

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

 Percent change from previous quarter at annual rate (5)

2023 III -0.8 r -0.3 r 0.5 r 5.4 r 1.8 r 6.2 r

 II 3.3 r 1.1 r -2.1 8.1 r 5.2 r 4.7 r

 I -1.9 -0.4 1.5 4.5 0.8 6.6 

2022 ANNUAL -1.3 2.8 r 4.2 3.5 -4.3 4.8 

2022 IV -3.2 -3.6 -0.5 -0.1 -4.1 3.2 

 III -2.8 0.4 3.3 7.7 2.0 10.8 

 II 2.2 3.0 0.7 3.2 -6.0 1.0 r

 I -3.9 3.1 7.3 0.7 -7.9 4.7 

2021 ANNUAL 1.7 r 4.9 r 3.2 2.3 -2.4 0.6 r

2021 IV -2.2 r 4.8 r 7.2 8.0 -0.7 10.4 r

 III -1.9 r 3.3 r 5.3 -1.7 -7.8 0.2 r

 II 5.5 r 6.1 r 0.6 6.1 -1.7 0.6 r

 I -1.1 r 0.2 r 1.3 -1.3 -5.4 -0.2 r

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

 Percent change from corresponding quarter of previous year

2023 III -0.7 -0.8 -0.1 4.4 r 0.9 r 5.2 r

 II -1.2 -0.7 0.5 5.0 r 0.9 r 6.3 r

 I -1.4 -0.2 1.3 3.8 -1.9 5.3 

2022 ANNUAL -1.3 2.8 r 4.2 3.5 -4.3 4.8 

2022 IV -1.9 0.7 2.7 2.8 -4.1 4.9 

 III -1.7 2.8 4.6 4.8 -3.2 6.6 

 II -1.5 r 3.6 5.1 2.5 -5.7 4.0 r

 I -0.7 r 4.3 r 5.0 3.2 -4.6 3.9 r

2021 ANNUAL 1.7 r 4.9 r 3.2 2.3 -2.4 0.6 r

2021 IV 0.0 r 3.6 r 3.5 2.7 -4.0 2.6 r

 III 0.3 r 4.2 r 3.8 2.6 -2.7 2.2 r

 II 4.9 r 15.0 r 9.6 -0.6 -5.2 -5.2 r

 I 1.6 r -1.9 r -3.5 4.3 2.3 2.6 r

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

 Indexes 2017=100

2023 III 98.0 r 99.9 r 102.0 r 124.9 r 99.7 r 127.5 r

 II 98.2 r 100.0 r 101.9 123.2 r 99.3 r 125.6 r

 I 97.4 r 99.7 r 102.4 120.9 98.0 124.1 r

2022 ANNUAL 98.8 r 100.3 r 101.5 118.5 98.9 119.9 r

2022 IV 97.8 r 99.8 r 102.1 119.5 97.8 122.2 r

 III 98.6 r 100.8 r 102.2 119.6 98.9 121.2 r

 II 99.3 r 100.7 r 101.4 117.4 98.4 118.1 r

 I 98.8 r 99.9 r 101.2 116.4 99.9 117.9 r

2021 ANNUAL 100.2 r 97.5 r 97.4 114.5 103.3 114.3 r

2021 IV 99.8 r 99.2 r 99.4 116.2 102.0 116.5 r

 III 100.3 r 98.0 r 97.7 114.0 102.2 113.7 r

 II 100.8 r 97.2 r 96.5 114.5 104.3 113.6 r

 I 99.4 r 95.8 r 96.3 112.8 104.7 113.5 r

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

See footnotes following Table 6. December 6, 2023

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

Table 4. Durable manufacturing sector: Labor productivity, hourly compensation, and unit labor

costs, seasonally adjusted.

 Real

Year Labor Hourly hourly Unit

and produc- Hours compensa- compensa- labor

quarter tivity Output worked tion (1) tion (2) costs

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

 Percent change from previous quarter at annual rate (5)

2023 III -1.8 r 1.6 r 3.4 r 3.4 r -0.2 r 5.3 r

 II 5.2 r 4.0 r -1.2 7.8 r 4.9 r 2.4 r

 I -4.2 -1.8 2.5 5.6 1.7 10.2 

2022 ANNUAL -1.0 3.6 r 4.7 2.4 -5.2 3.5 r

2022 IV -2.2 -2.7 -0.5 -1.5 -5.5 0.7 

 III -3.7 2.0 5.9 7.5 1.9 11.7 

 II 3.7 5.4 1.6 3.4 -5.8 -0.3 

 I -3.0 5.6 8.9 -1.8 -10.2 1.2 

2021 ANNUAL 0.7 r 3.8 r 3.1 3.2 -1.6 2.4 r

2021 IV 0.2 r 5.3 r 5.1 9.5 0.7 9.3 r

 III -3.0 r 2.7 r 5.9 -7.4 -13.2 -4.6 r

 II -2.6 r -2.9 r -0.3 9.0 0.9 11.9 r

 I -4.4 r -0.6 r 3.9 0.7 -3.5 5.3 r

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

 Percent change from corresponding quarter of previous year

2023 III -0.8 r 0.2 r 1.0 r 3.8 r 0.2 r 4.6 r

 II -1.3 r 0.4 1.7 4.8 r 0.7 r 6.1 r

 I -1.6 0.7 2.4 3.7 -2.0 5.4 

2022 ANNUAL -1.0 3.6 r 4.7 2.4 -5.2 3.5 r

2022 IV -1.3 2.5 3.9 1.8 -5.0 3.2 

 III -0.8 r 4.5 r 5.3 4.6 -3.5 5.3 

 II -0.6 r 4.7 r 5.3 0.7 -7.3 1.3 r

 I -2.1 r 2.6 r 4.8 2.0 -5.7 4.2 r

2021 ANNUAL 0.7 r 3.8 r 3.1 3.2 -1.6 2.4 r

2021 IV -2.5 r 1.1 r 3.6 2.7 -3.9 5.3 r

 III -2.7 r 0.9 r 3.8 3.4 -1.9 6.2 r

 II 6.6 r 18.0 r 10.7 0.7 -4.1 -5.6 r

 I 2.3 r -2.3 r -4.5 5.7 3.6 3.3 r

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

 Indexes 2017=100

2023 III 96.1 r 98.9 r 102.9 r 123.8 r 98.9 r 128.8 r

 II 96.5 r 98.5 r 102.1 122.8 r 98.9 r 127.2 r

 I 95.3 r 97.6 r 102.4 120.5 97.7 126.4 r

2022 ANNUAL 97.2 r 97.9 r 100.8 118.2 98.7 121.6 r

2022 IV 96.3 r 98.0 r 101.8 118.9 97.3 123.4 r

 III 96.9 r 98.7 r 101.9 119.3 98.7 123.2 r

 II 97.8 r 98.2 r 100.4 117.2 98.2 119.8 r

 I 96.9 r 96.9 r 100.0 116.2 99.7 119.9 r

2021 ANNUAL 98.2 r 94.5 r 96.3 115.3 104.1 117.5 r

2021 IV 97.6 r 95.6 r 97.9 116.7 102.4 119.6 r

 III 97.6 r 94.4 r 96.7 114.1 102.3 116.9 r

 II 98.3 r 93.7 r 95.3 116.3 105.9 118.3 r

 I 99.0 r 94.4 r 95.4 113.9 105.7 115.0 r

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

See footnotes following Table 6. December 6, 2023

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

Table 5. Nondurable manufacturing sector: Labor productivity, hourly compensation, and unit labor

costs, seasonally adjusted.

 Real

Year Labor Hourly hourly Unit

and produc- Hours compensa- compensa- labor

quarter tivity Output worked tion (1) tion (2) costs

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

 Percent change from previous quarter at annual rate (5)

2023 III 2.3 r -2.1 r -4.2 r 8.8 r 5.0 r 6.4 r

 II 2.0 r -1.7 r -3.6 8.4 r 5.6 r 6.3 r

 I 1.1 0.9 -0.2 2.4 -1.3 1.3 

2022 ANNUAL -1.6 1.7 3.4 5.3 -2.6 7.1 r

2022 IV -4.2 -4.6 -0.4 2.6 -1.5 7.1 

 III -0.2 -1.2 -1.1 7.5 1.8 7.6 

 II 1.3 0.6 -0.7 2.7 -6.5 1.3 

 I -3.9 0.6 4.7 5.2 -3.8 9.4 

2021 ANNUAL 1.1 r 4.5 3.3 0.7 -3.9 -0.4 r

2021 IV -6.2 3.8 10.7 5.7 -2.8 12.7 

 III -1.5 r 2.6 r 4.2 10.1 3.3 11.8 r

 II 12.1 r 14.4 r 2.1 1.1 -6.4 -9.8 r

 I 1.7 r -1.2 r -2.9 -5.7 -9.6 -7.2 r

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

 Percent change from corresponding quarter of previous year

2023 III 0.2 r -1.9 r -2.1 r 5.5 r 1.9 r 5.3 r

 II -0.4 r -1.7 r -1.3 5.2 1.1 5.6 r

 I -0.5 -1.1 -0.6 3.8 -1.9 4.3 

2022 ANNUAL -1.6 1.7 3.4 5.3 -2.6 7.1 r

2022 IV -1.8 -1.2 0.6 4.5 -2.5 6.3 

 III -2.3 0.9 3.3 5.2 -2.9 7.7 

 II -2.6 1.9 4.6 5.9 -2.5 8.7 

 I -0.1 5.2 r 5.4 5.5 -2.5 5.6 r

2021 ANNUAL 1.1 r 4.5 3.3 0.7 -3.9 -0.4 r

2021 IV 1.3 r 4.7 r 3.4 2.6 -4.0 1.3 r

 III 1.8 r 5.9 r 4.0 1.1 -4.1 -0.7 r

 II 2.2 r 10.3 r 7.9 -3.1 -7.7 -5.2 r

 I -0.7 -2.5 -1.8 2.1 0.1 2.9 r

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

 Indexes 2017=100

2023 III 99.3 r 99.8 r 100.5 r 126.8 r 101.2 r 127.6 r

 II 98.8 r 100.3 r 101.6 124.1 r 100.0 r 125.6 r

 I 98.3 r 100.8 r 102.5 121.6 98.6 123.7 r

2022 ANNUAL 98.9 r 101.5 r 102.7 119.2 99.6 120.6 r

2022 IV 98.0 r 100.5 r 102.6 120.9 99.0 123.3 r

 III 99.1 r 101.7 r 102.7 120.1 99.3 121.2 r

 II 99.1 r 102.0 r 102.9 118.0 98.9 119.0 r

 I 98.8 r 101.9 r 103.1 117.2 100.6 118.6 r

2021 ANNUAL 100.6 r 99.9 r 99.3 113.2 102.2 112.6 r

2021 IV 99.8 r 101.7 r 101.9 115.7 101.5 116.0 r

 III 101.4 r 100.8 r 99.4 114.1 102.3 112.6 r

 II 101.8 r 100.1 r 98.4 111.4 101.5 109.5 r

 I 98.9 r 96.8 r 97.9 111.1 103.1 112.3 r

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

See footnotes following Table 6. December 6, 2023

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

Table 6. Nonfinancial corporate sector: Labor productivity, hourly compensation, unit labor costs,

unit profits, and prices, seasonally adjusted.

 Value-

 Real added Unit

 Hourly hourly output Unit combined

Year Labor compen- compen- Unit price nonlabor input Unit

and produc- Hours sation sation labor deflator costs costs profits

quarter tivity Output worked (1) (2) costs (4) (6) (7) (8)

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

 Percent change from previous quarter at annual rate (5)

2023 III 2.2 3.1 0.8 3.9 0.3 1.7 2.0 -2.7 0.3 11.1 

 II 2.2 r 1.2 -0.9 7.2 r 4.4 r 4.9 3.1 -2.4 2.6 6.0 r

 I 1.6 4.3 2.6 6.7 2.9 5.0 0.0 2.3 4.1 -18.8 

2022 ANNUAL -1.0 3.1 4.2 4.1 -3.7 5.2 7.5 11.8 7.2 9.1 

2022 IV -1.3 -0.1 1.2 0.3 -3.7 1.7 1.1 2.2 1.8 -2.3 

 III 1.4 5.0 3.6 6.7 1.0 5.2 3.1 1.1 3.9 -0.6 

 II -1.6 0.6 2.3 2.6 -6.5 4.3 11.2 9.1 5.8 42.8 

 I -3.1 0.8 4.0 1.7 -7.0 4.9 10.4 22.8 10.2 11.7 

2021 ANNUAL 3.6 9.0 5.1 4.7 -0.2 1.0 4.8 3.8 1.8 23.3 

2021 IV -2.5 5.2 8.0 4.2 -4.2 6.9 7.7 18.6 10.3 -4.7 

 III 2.6 7.0 4.2 8.7 1.9 5.9 3.6 15.2 8.6 -17.9 

 II 0.6 6.4 5.8 6.9 -0.9 6.3 8.5 -12.0 0.4 59.6 

 I 3.4 7.7 4.2 -0.5 -4.7 -3.8 5.7 5.6 -1.0 53.3 

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

 Percent change from corresponding quarter of previous year

2023 III 1.2 2.1 0.9 4.5 0.9 3.3 1.5 -0.2 2.2 -1.7 

 II 1.0 r 2.6 1.6 5.2 1.1 4.2 1.8 0.7 r 3.1 -4.4 

 I 0.0 2.4 2.4 4.1 -1.6 4.1 3.8 3.6 3.9 3.0 

2022 ANNUAL -1.0 3.1 4.2 4.1 -3.7 5.2 7.5 11.8 7.2 9.1 

2022 IV -1.2 1.6 2.8 2.8 -4.1 4.0 6.4 8.5 5.4 11.5 

 III -1.5 2.9 4.4 3.8 -4.2 5.3 8.1 12.6 7.5 10.8 

 II -1.2 3.4 4.6 4.3 -4.0 5.5 8.2 16.3 8.7 5.7 

 I -0.6 4.8 5.5 5.3 -2.6 6.0 7.5 10.2 7.3 8.7 

2021 ANNUAL 3.6 9.0 5.1 4.7 -0.2 1.0 4.8 3.8 1.8 23.3 

2021 IV 1.0 6.6 5.5 4.8 -2.0 3.7 6.4 6.1 4.4 17.6 

 III 4.6 10.9 6.0 5.7 0.3 1.1 4.0 14.3 4.7 0.5 

 II 3.7 17.1 12.9 1.7 -3.1 -1.9 5.6 3.1 -0.5 48.8 

 I 5.7 2.4 -3.2 6.5 4.4 0.7 3.3 -5.6 -1.3 37.5 

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

 Indexes 2017=100

2023 III 111.0 117.7 106.1 133.5 106.6 120.3 121.8 110.3 117.0 154.0 

 II 110.4 r 116.9 r 105.9 132.2 r 106.5 r 119.8 r 121.2 111.1 r 117.0 r 150.0 r

 I 109.8 116.5 106.1 129.9 105.4 118.4 120.3 111.8 116.2 147.8 

2022 ANNUAL 109.6 114.6 104.5 126.7 105.8 115.5 118.8 110.0 113.7 153.2 

2022 IV 109.3 115.3 105.4 127.8 104.6 116.9 120.3 111.2 115.0 155.7 

 III 109.7 115.3 105.1 127.7 105.6 116.4 120.0 110.6 114.5 156.6 

 II 109.3 113.9 104.2 125.7 105.4 115.0 119.0 110.3 113.4 156.9 

 I 109.8 113.7 103.6 124.9 107.1 113.8 115.9 107.9 111.8 143.5 

2021 ANNUAL 110.8 111.1 100.3 121.7 109.8 109.8 110.5 98.4 106.1 140.4 

2021 IV 110.6 113.5 102.6 124.3 109.1 112.4 113.1 102.5 109.2 139.6 

 III 111.3 112.1 100.7 123.1 110.3 110.5 111.0 98.2 106.5 141.3 

 II 110.6 110.2 99.6 120.6 109.8 109.0 110.0 94.8 104.3 148.4 

 I 110.5 108.5 98.2 118.5 110.0 107.3 107.8 97.9 104.2 132.0 

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

See footnotes following Table 6. December 6, 2023

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

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

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

Reserve Board. Hours and compensation data are from the Bureau of Labor Statistics and the Bureau of

Economic Analysis.

SIZE OF REVISIONS: Productivity and cost measures are revised on a regular schedule as more 

complete data become available. The first estimate is published within 40 days of the close of the 

reference quarter, the second estimate approximately 30 days later, and the third estimate approximately 

60 days after the second estimate. Based on past revisions, the third estimate of nonfarm business sector 

quarterly labor productivity growth has differed from the first estimate by -1.1 to +1.3 percentage point 

about 80 percent of the time. This interval is based on estimates for reference quarters from the first 

quarter of 2001 to the second quarter of 2023. For more about revisions to labor productivity growth see 

“Revisions to BLS quarterly labor productivity estimates: How large are they?” at 

www.bls.gov/opub/mlr/2022/article/revisions-to-bls-quarterly-labor-productivity-estimates-how-largeare-they.htm.

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 1978-2022 is based on the Consumer Price Index Retroactive series (CPI-URS).

(3) Unit nonlabor payments include profits, consumption of fixed capital, taxes on production and 

imports less subsidies, net interest and miscellaneous payments, business current transfer payments, 

rental income of persons, and the current surplus of government enterprises.

(4) Current dollar output divided by the output index.

(5) Quarterly changes: Percent change compounded at annual rate is calculated using index numbers to 

three decimal places. Indexes published in the news release are rounded to one decimal place for

convenience. Annual changes: Percent change is calculated using annual indexes to three decimal 

places.

(6) Unit nonlabor costs include consumption of fixed capital, taxes on production and imports less 

subsidies, net interest and miscellaneous payments, and business current transfer payments.

(7) Total unit costs are the sum of unit labor and nonlabor costs.

(8) Unit profits include corporate profits before tax with inventory valuation and capital consumption 

adjustment.