For release 10:00 a.m. (EDT) Wednesday, May 18, 2016 USDL-16-0988 

Technical information: (202) 691-5618 • productivity@bls.gov • www.bls.gov/lpc

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

PRODUCTIVITY AND COSTS BY INDUSTRY: 

 SELECTED SERVICE-PROVIDING INDUSTRIES, 2015

Labor productivity rose in 15 of 28 selected service-providing industries in 2015, the U.S. Bureau of 

Labor Statistics reported today. This was fewer than in 2014, when labor productivity increased in 20 of 28 

industries. In 2015 output increased in fewer industries than in 2014, while hours worked increased in 

more industries than in 2014. 

Unit labor costs declined in 10 industries in 2015. Each of the industries with declines in unit labor costs

also recorded increases in productivity. Increases in labor productivity counter the impact of rising hourly 

compensation on unit labor costs facing employers. 

Productivity and cost measures are published in this release for the first time for amusement parks and 

arcades, and for specialized freight trucking. 

Chart 1. Selected service-providing industries with the largest changes in productivity, 2015 
Chart 1 shows the selected service-providing industries with the largest changes in productivity in 2015. 

Industries above the diagonal line had growth in output greater than growth in hours worked, resulting in

positive productivity growth. In contrast, industries below the diagonal line exhibited declining 

productivity as hours worked increased and, in most cases, output declined. 

Trends in Labor Productivity in 2015 

• Labor productivity increased in 15 of 28 industries in 2015. (See chart 2.) Among those

with increasing productivity, output grew in all but two. Hours worked declined in 9 of the

28 industries.

• Productivity gains of at least 8.0 percent occurred in two industries where output increases

coincided with declines in hours worked: wireless telecommunications carriers (26.5

percent) and amusement parks and arcades (8.0 percent).

• Four industries recorded output gains of at least 3.0 percent but had productivity declines

because of larger increases in hours worked: truck, trailer, and RV rental and leasing (-5.6

percent), warehousing and storage (-4.4 percent), software publishers (-4.2 percent), and air

transportation (-0.3 percent).

Chart 2. Labor productivity growth in selected service-providing industries, 2015 

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Trends in Unit Labor Costs in 2015 

• Unit labor costs fell in 10 industries in 2015. (See chart 3.) 

• All unit labor cost declines occurred in industries where productivity rose. 

• Conversely, each of the industries where productivity fell also recorded an increase in 

unit labor costs. 

• Hourly labor compensation rose in 19 of the 28 industries measured. 

Chart 3. Hourly compensation, productivity, and unit labor costs in selected service-providing

industries, 2015 

Long Term Productivity Trends 

Chart 4 displays the number of industries with increases in productivity, output, and hours worked 

for selected time periods through 2014, the latest year for which data are available for all 57 

selected service-providing industries published on the BLS website. 

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• Productivity rose in 44 service-providing industries for the period 1987 to 2014. Median

productivity growth for all 57 industries was approximately 1.7 percent per year.

• Output increased during this period in 43 industries, while hours worked increased in 34

industries.

• Productivity also increased in 37 of the 57 industries measured between 2007 and 2014, even

though the period saw a severe recession. However, only 28 industries had increases in output

and 17 experienced growth in hours worked.

• Other specialized trucking, long-distance, and other specialized trucking, local, are published

for the first time in this release for 2002-2014. The first industry reported an increase in

productivity in 2014, while the latter had a productivity decline.

Chart 4. Number of selected service-providing industries with increases in labor productivity, 

output, and hours worked

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Want to know more? 

Find data at www.bls.gov/lpc for: 

• Additional industries and sectors 

• Detailed data series: indexes of productivity and related measures; rates of change; and levels 

of industry employment, hours worked, nominal value of production, and labor compensation 

• Additional years and long-term data

Questions? 

Additional information can be obtained by calling the BLS productivity program at (202) 691-5618 

or by sending an email to productivity@bls.gov. Information in this report will be made available 

to sensory-impaired individuals upon request. TDD message referral phone number: 1-800-877-

8339. 

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Subscribe to productivity news releases on the BLS website at 

https://subscriptions.bls.gov/accounts/USDOLBLS/subscriber/new. 

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Technical Note

Labor Productivity: Labor productivity describes the relationship between real output and the 

labor hours involved in its production. These measures show the changes from period to period in 

the amount of goods and services produced per hour worked. Although the labor productivity 

measures relate output in an industry to hours worked of all persons in that industry, they do not 

measure the specific contribution of labor to growth in output. Rather, they reflect the joint effects

of many influences, including: changes in technology; capital investment; utilization of capacity,

energy, and materials; the use of purchased services inputs, including contract employment

services; the organization of production; the characteristics and effort of the workforce; and 

managerial skill. 

Unit Labor Costs: Unit labor costs represent the cost of labor required to produce one unit of 

output. The unit labor cost indexes are computed by dividing an index of nominal industry labor 

compensation by an index of real industry output. Unit labor costs also describe the relationship 

between compensation per hour and real output per hour (labor productivity). Increases in hourly 

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

increases and reduce unit labor costs.

Output: Industry output is measured as an annual-weighted index of the changes in the various 

products (in real terms) provided for sale outside the industry. Real industry output is usually 

derived by deflating nominal sales or values of production using BLS price indexes, but for some 

industries it is measured by physical quantities of output. 

Industry output measures are constructed primarily using data from the economic censuses and 

annual surveys of the U.S. Census Bureau, U.S. Department of Commerce, together with 

information on price changes from BLS. Other data sources include: the Energy Information 

Administration, U.S. Department of Energy; the Bureau of Transportation Statistics, U.S. 

Department of Transportation; the U.S. Geological Survey, U.S. Department of the Interior; the 

U.S. Postal Service; the Postal Rate Commission; and the Federal Deposit Insurance Corporation. 

Industrial production data from the Quarterly Service Survey from the Census Bureau are used to 

construct preliminary output measures for 2015 for some industries. 

Labor Hours: Labor hours are measured as annual hours worked by all employed persons in an

industry. Data on industry employment and hours come primarily from the BLS Current

Employment Statistics (CES) survey and Current Population Survey (CPS). CES data on the 

number of total and production worker jobs held by wage and salary workers in nonfarm

establishments are supplemented with CPS self-employed and unpaid family worker data to 

estimate industry employment. Hours worked estimates are derived using CES and CPS 

employment, CES data on the average weekly hours paid of production workers, CPS data on 

hours of nonproduction, self-employed, and unpaid family workers, and ratios of hours worked to 

hours paid based on data from the National Compensation Survey (NCS). For some industries,

employment and hours data are supplemented or further disaggregated using data from the BLS

Quarterly Census of Employment and Wages (QCEW), the Census Bureau, or other sources. 

Additional sources of employment and hours data for certain service industries include the 

Association of American Railroads, the U.S. Department of Transportation, and the U.S. Postal 

Service. Hours worked are estimated separately for different types of workers and then are directly

aggregated; no adjustments for labor composition are made.

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Labor Compensation: Labor compensation, defined as payroll plus supplemental payments, is a

measure of the cost to the employer of securing the services of labor. Payroll includes salaries,

wages, commissions, dismissal pay, bonuses, vacation and sick leave pay, and compensation in 

kind. Supplemental payments include both legally required expenditures and payments for 

voluntary programs. The legally required portion consists primarily of federal old age and

survivors’ insurance, unemployment compensation, and workers’ compensation. Payments for 

voluntary programs include all programs not specifically required by legislation, such as the 

employer portion of private health insurance and pension plans. Industry compensation measures

are constructed primarily using data from the economic censuses and annual surveys of the Census 

Bureau, U.S. Department of Commerce. The estimates for 2015 are constructed using data from 

the BLS Quarterly Census of Employment and Wages (QCEW).

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Labor 

productivity

Unit labor 

costs Output

Hours 

worked

Labor 

compensation

Utilities

Utilities 22 558.7 -2.5 4.5 -0.8 1.8 3.6

Utilities 221 558.7 -2.5 4.5 -0.8 1.8 3.6

Power generation and supply 2211 394.6 -1.7 4.2 -0.7 1.0 3.4

Natural gas distribution 2212 114.1 -4.4 5.4 -0.9 3.6 4.4

Water, sewage and other systems 2213 50.0 -7.6 6.5 -3.7 4.2 2.5

Transportation and Warehousing

Air transportation 481 434.6 -0.3 6.4 4.5 4.8 11.2

Line-haul railroads 482111 189.8 2.2 -0.7 0.0 -2.1 -0.7

Truck transportation 484 1672.0 -1.0 4.7 0.7 1.7 5.5

General freight trucking 4841 1194.2 0.2 3.6 2.4 2.2 6.1

General freight trucking, local 48411 313.1 -4.0 7.3 -1.4 2.7 5.8

General freight trucking, long-distance 48412 881.1 1.1 2.9 3.2 2.0 6.2

Specialized freight trucking 4842 477.8 -3.0 6.8 -2.5 0.5 4.1

Postal service 491 596.8 0.1 0.4 1.3 1.2 1.7

Postal service 4911 596.8 0.1 0.4 1.3 1.2 1.7

Couriers and messengers 492 636.9 -6.1 5.9 -1.0 5.5 4.8

Warehousing and storage 493 821.2 -4.4 6.8 3.0 7.8 10.0

Warehousing and storage 4931 821.2 -4.4 6.8 3.0 7.8 10.0

Information

Publishing 511 769.8 -3.5 3.5 0.2 3.9 3.7

Newspaper publishers 51111 201.9 1.1 -0.2 -4.6 -5.6 -4.8

Periodical publishers 51112 114.1 -10.7 3.4 -5.2 6.1 -2.0

Software publishers 5112 334.3 -4.2 4.1 3.3 7.8 7.5

Broadcasting, except Internet 515 292.2 3.9 -4.5 3.7 -0.3 -1.0

Radio and television broadcasting 5151 227.5 5.2 -5.3 5.0 -0.2 -0.6

Cable and other subscription programming 5152 64.7 4.6 -6.2 4.3 -0.3 -2.2

Wired telecommunications carriers 5171 595.7 3.4 -2.2 0.4 -2.9 -1.8

Wireless telecommunications carriers 5172 131.5 26.5 -22.7 11.3 -12.0 -13.9

Finance and Insurance

Commercial banking 52211 1272.3 4.7 -0.3 2.2 -2.4 1.9

Real Estate and Rental and Leasing

Truck, trailer, and RV rental and leasing 53212 72.1 -5.6 5.8 6.1 12.5 12.3

Professional and Technical Services

Accounting and bookkeeping services 5412 1140.0 1.7 1.8 5.2 3.5 7.2

Accounting and bookkeeping services 54121 1140.0 1.7 1.8 5.2 3.5 7.2

Engineering services 54133 969.9 -7.3 10.1 -5.9 1.5 3.6

Administrative and Waste Services

Travel arrangement and reservation services 5615 222.1 -3.7 9.3 0.3 4.2 9.6

Health Care and Social Assistance

Medical and diagnostic laboratories 6215 268.4 2.2 -0.5 6.8 4.5 6.2

Arts, Entertainment, and Recreation

Amusement parks and arcades 7131 203.0 8.0 3.0 3.9 -3.8 6.9

Gambling industries 7132 137.6 4.6 -5.2 7.4 2.7 1.9

Other Services

Automotive repair and maintenance 8111 1130.5 5.3 0.0 6.2 0.8 6.2

Drycleaning and laundry services 8123 310.3 3.8 -2.1 3.3 -0.4 1.2

Table 1. Recent labor productivity, unit labor costs, and related data

Industry 2012 NAICS 

code

2015 

Employment 

(thousands)

Percent change, 2014-2015

8
Labor 

productivity

Unit labor 

costs Output

Hours 

worked

Labor 

compensation

Utilities

Utilities 22 551.5 2.4 1.4 1.5 -0.8 2.9

Utilities 221 551.5 2.4 1.4 1.5 -0.8 2.9

Power generation and supply 2211 391.4 3.3 0.5 2.2 -1.0 2.7

Natural gas distribution 2212 111.9 0.8 3.7 -0.3 -1.1 3.4

Water, sewage and other systems 2213 48.2 -1.7 4.8 0.8 2.6 5.7

Transportation and Warehousing

Air transportation 481 422.8 3.2 0.4 2.6 -0.6 3.0

Line-haul railroads 482111 187.4 3.7 -0.4 2.1 -1.5 1.7

Truck transportation(1) 484 1632.3 0.6 0.8 2.0 1.5 2.9

General freight trucking(1) 4841 1163.2 1.1 0.9 2.4 1.2 3.3

General freight trucking, local(1) 48411 303.2 2.6 0.1 3.7 1.1 3.8

General freight trucking, long-distance 48412 860 1.2 0.3 2.3 1.0 2.6

Specialized freight trucking(2) 4842 469.1 0.7 1.8 2.2 1.5 4.1

Used household and office goods moving 48421 97 -1.0 2.6 -0.3 0.6 2.2

Other specialized trucking, local(2) 48422 236.8 -0.1 2.6 2.1 2.2 4.7

Other specialized trucking, long-distance(2) 48423 135 1.8 0.8 4.0 2.1 4.9

Postal service 491 593 0.6 3.2 -0.6 -1.3 2.5

Postal service 4911 593 0.6 3.2 -0.6 -1.3 2.5

Couriers and messengers 492 606.3 -1.9 3.5 0.3 2.2 3.8

Warehousing and storage(1) 493 752.7 2.6 -0.5 5.9 3.2 5.4

Warehousing and storage(1) 4931 752.7 2.6 -0.5 5.9 3.2 5.4

General warehousing and storage(1) 49311 646.8 3.9 -1.4 7.4 3.3 5.9

Refrigerated warehousing and storage(1) 49312 52 0.0 1.4 2.8 2.8 4.3

Information

Publishing 511 753.5 4.0 1.3 3.5 -0.5 4.8

Newspaper, book, and directory publishers 5111 438 -0.2 4.3 -2.5 -2.3 1.7

Newspaper publishers 51111 211.3 -1.2 4.4 -4.2 -3.0 0.0

Periodical publishers 51112 111.3 -0.4 4.9 -1.5 -1.1 3.4

Book publishers 51113 69.1 0.0 4.8 -0.8 -0.8 3.9

Software publishers 5112 315.5 12.3 -6.4 18.8 5.8 11.1

Motion picture and video exhibition 51213 132 1.7 1.9 1.6 -0.2 3.5

Broadcasting, except Internet 515 287.8 2.8 1.8 2.9 0.1 4.7

Radio and television broadcasting 5151 224 1.8 2.1 1.5 -0.3 3.7

Radio broadcasting 51511 92.1 3.4 1.8 2.4 -0.9 4.2

Cable and other subscription programming 5152 63.8 4.9 2.6 7.0 2.0 9.7

Wired telecommunications carriers 5171 608 3.6 -1.1 2.8 -0.8 1.6

Wireless telecommunications carriers 5172 149.6 11.2 -6.3 19.4 7.4 11.9

Finance and Insurance

Commercial banking 52211 1292.8 3.3 2.0 3.2 -0.1 5.2

Real Estate and Rental and Leasing

Passenger car rental 532111 114.7 1.7 2.3 2.4 0.7 4.8

Truck, trailer, and RV rental and leasing 53212 65.6 2.5 0.9 2.4 -0.1 3.3

Video tape and disc rental 53223 17.5 6.4 -2.0 -0.8 -6.7 -2.8

Professional and Technical Services

Accounting and bookkeeping services(3) 5412 1098.9 2.6 1.0 3.2 0.6 4.2

Accounting and bookkeeping services(3) 54121 1098.9 2.6 1.0 3.2 0.6 4.2

Offices of certified public accountants(3) 541211 449.5 1.8 2.4 2.8 0.9 5.2

Tax preparation services 541213 131.4 0.8 1.7 2.4 1.6 4.1

Other accounting services(3) 541219 338.7 4.7 -2.3 4.8 0.1 2.4

Architectural services 54131 182.6 1.5 1.9 2.3 0.8 4.2

Engineering services 54133 947.6 1.1 3.0 2.8 1.7 5.9

Advertising agencies 54181 206.7 1.7 2.5 2.1 0.5 4.6

Photography studios, portrait 541921 60 0.6 2.1 1.0 0.4 3.1

Industry 2012 NAICS 

code

2014 

Employment 

(thousands)

Average annual percent change, 1987-2014

Table 2. Long run labor productivity, unit labor costs, and related data

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Labor 

productivity

Unit labor 

costs Output

Hours 

worked

Labor 

compensation

Administrative and Waste Services

Employment placement and executive search(4) 56131 303 3.9 0.3 5.1 1.2 5.5

Travel arrangement and reservation services(3) 5615 214.8 6.7 -1.6 3.6 -2.9 1.9

Travel agencies 56151 97.4 5.7 -1.0 4.2 -1.4 3.2

Janitorial services 56172 1323.3 2.0 1.4 3.6 1.6 5.0

Health Care and Social Assistance

Medical and diagnostic laboratories(4) 6215 261.8 2.2 0.3 5.3 3.0 5.6

Medical laboratories(4) 621511 185.2 2.1 0.2 5.3 3.1 5.5

Diagnostic imaging centers(4) 621512 76.6 2.4 0.7 5.4 2.9 6.1

Hospitals, except psychiatric and substance abuse hospitals(5) 6221,3 4670.9 0.5 3.5 2.1 1.6 5.6

Arts, Entertainment, and Recreation

Amusement parks and arcades(6) 7131 189.7 -4.3 6.7 -1.7 2.7 4.9

Amusement and theme parks 71311 169.1 -1.2 4.3 1.8 3.0 6.2

Gambling industries(3) 7132 138.6 1.9 2.7 1.9 0.0 4.6

Golf courses and country clubs(2) 71391 381.3 -1.2 4.1 0.0 1.3 4.1

Fitness and recreational sports centers(2) 71394 580.9 3.9 -0.8 3.9 0.0 3.1

Bowling centers 71395 69.4 0.1 2.8 -1.4 -1.5 1.4

Accommodation and Food Services

Accommodation and food services 72 12851.4 0.7 2.7 2.2 1.5 5.0

Accommodation 721 1937.2 2.1 1.7 2.7 0.7 4.5

Traveler accommodation 7211 1853.9 2.1 1.7 2.8 0.7 4.5

Hotels and motels, except casino hotels 72111 1540.1 1.5 2.5 2.1 0.6 4.6

Food services and drinking places 722 10914.2 0.4 3.1 2.0 1.6 5.1

Special food services 7223 766.4 1.0 1.3 2.3 1.3 3.6

Drinking places, alcoholic beverages 7224 376 -0.5 3.3 -0.8 -0.3 2.6

Restaurants and other eating places 72251 9771.8 0.4 3.3 2.2 1.8 5.5

Full-service restaurants 722511 5083.7 0.5 3.7 2.2 1.7 5.9

Limited-service eating places 722513,4,5 4688.1 0.3 2.8 2.1 1.8 5.0

Other Services

Automotive repair and maintenance 8111 1113.1 0.9 2.3 1.3 0.4 3.7

Reupholstery and furniture repair 81142 21.1 -0.5 3.6 -2.7 -2.2 0.7

Personal care services 8121 1189.1 2.4 1.6 3.5 1.1 5.1

Hair, nail, and skin care services 81211 963 2.4 1.6 3.1 0.7 4.8

Funeral homes and funeral services 81221 113.7 -0.9 4.6 -0.4 0.5 4.1

Drycleaning and laundry services 8123 317.5 1.9 1.7 0.9 -1.0 2.6

Coin-operated laundries and drycleaners 81231 42.8 2.9 1.8 0.6 -2.3 2.4

Drycleaning and laundry services 81232 149.2 0.9 2.1 -1.0 -1.9 1.0

Linen and uniform supply 81233 125.5 1.8 1.4 2.7 0.8 4.1

Photofinishing 81292 11.8 2.5 1.8 -4.4 -6.7 -2.7

Table 2. Long run labor productivity, unit labor costs, and related data - Continued

Industry 2012 NAICS 

code

2014 

Employment 

(thousands)

Average annual percent change, 1987-2014

(2) For NAICS industries 4842, 48422, 48423, 71391 and 71394, average annual percent changes are for 2002-2014.

(5) For NAICS industry 6221,3, average annual percent changes are for 1993-2012. Employment is for 2012.

(6) For NAICS industry 7131, average annual percent changes are for 2007-2014.

Footnotes:

(1) For NAICS industries 484, 4841, 48411, 493, 4931, 49311, 49312, average annual percent changes are for 1992-2014.

(3) For NAICS industries 5412, 54121, 541211, 541219, 5615, and 7132, average annual percent changes are for 1997-2014.

(4) For NAICS industries 56131, 6215, 621511, and 621512, average annual percent changes are for 1994-2014.

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