Transmission of material in this release is embargoed until USDL 16-1770 

8:30 a.m. (EDT) Thursday, September 1, 2016 

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

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

PRODUCTIVITY AND COSTS

Second Quarter 2016, Revised

Nonfarm business sector labor productivity decreased at a 0.6-percent annual rate during the second

quarter of 2016, the U.S. Bureau of Labor Statistics reported today, as output increased 1.1 percent and 

hours worked increased 1.7 percent. (All quarterly percent changes in this release are seasonally 

adjusted annual rates.) From the second quarter of 2015 to the second quarter of 2016, productivity 

decreased 0.4 percent, the first four-quarter decline in the series since a 0.6-percent decline in the second 

quarter of 2013. (See chart 1 and table A.) 

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

hours worked of all persons, including employees, proprietors, and unpaid family workers. 

Unit labor costs in the nonfarm business sector increased 4.3 percent in the second quarter of 2016, 

reflecting a 3.7-percent increase in hourly compensation and a 0.6-percent decline in productivity. Unit 

labor costs increased 2.6 percent over the last four quarters. (See chart 2 and tables A 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 output per hour tend to reduce 

them.

Manufacturing sector labor productivity decreased 0.4 percent in the second quarter of 2016, as 

output and hours worked decreased 0.8 percent and 0.4 percent, respectively. Output per hour increased

Chart 1. Labor productivity, nonfarm business, all persons, 

2012Q1 – 2016Q2

-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

2012 2013 2014 2015 2016

From previous quarter, annual rate

From same quarter a year ago

Percent change Percent change

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

2012Q1 – 2016Q2

-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

2012 2013 2014 2015 2016

From previous quarter, annual rate

From same quarter a year ago
-2- 

2.4 percent in the durable goods manufacturing sector reflecting a 0.7-percent increase in output and a 

1.8-percent decline in hours worked. Productivity decreased 4.4 percent in the nondurable goods sector 

in the second quarter of 2016, following a 4.0-percent first-quarter increase. Over the last four quarters, 

manufacturing productivity increased 0.9 percent, as output increased 0.3 percent and hours declined 0.6 

percent. (See tables A, 3, 4, and 5.) Unit labor costs in manufacturing increased 6.7 percent in the 

second quarter of 2016 and rose 2.5 percent from the same quarter a year ago. Hourly compensation 

increased 6.3 percent in the second quarter of 2016. 

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 5.) 

Preliminary second quarter 2016 measures of productivity and costs were announced for the 

nonfinancial corporate sector. Productivity decreased 2.1 percent in the second quarter of 2016—the 

largest decline since a 3.1 percent decline in the third quarter of 2013—as output decreased 0.7 

percent, and hours worked increased 1.4 percent. Unit labor costs increased 5.9 percent, reflecting 

both a 3.7 percent increase in hourly compensation and a 2.1 percent decline in productivity. (See 

tables C and 6.) 

Revised measures 

The measures released today are based on more recent source data than were available for the 

preliminary report. Table B presents previous and revised productivity and related measures for the 

nonfarm business, business, and manufacturing sectors. 

In the second quarter of 2016, nonfarm business productivity was revised down slightly to a decline 

of 0.6 percent. Output was revised down slightly to an increase of 1.1 percent, and hours were revised 

down slightly to an increase of 1.7 percent. Unit labor costs increased 4.3 percent rather than 

increasing 2.0 percent as reported August 9, due mainly to a 2.2-percentage point upward revision to 

hourly compensation, in addition to the slight downward revision to productivity. 

In the second quarter of 2016, manufacturing sector productivity was revised down to a decline of 0.4 

percent from a previously-reported decline of 0.2 percent. Unit labor costs increased 6.7 percent, higher 

than the preliminary estimate of 3.1 percent. Durable and nondurable goods manufacturing unit labor 

costs were also revised up, to increases of 3.0 percent and 13.0 percent, respectively. After revision, 

nondurable goods unit labor costs had its largest gain in the series since a 13.2-percent gain in the fourth 

quarter of 2008. 

In the first quarter of 2016, nonfarm business productivity decreased at the same 0.6-percent rate 

reported in the previous estimate. Unit labor costs were revised down slightly. Manufacturing sector 

productivity was revised down to an increase of 1.3 percent. Hourly compensation and unit labor costs 

were revised downward slightly. 

In the nonfinancial corporate sector, first-quarter 2016 productivity was revised down slightly to an 

increase of 1.3 percent. Unit labor costs were revised down slightly to a decrease of 3.2 percent (See 

table C.)

Full historical annual and quarterly measures can be found on the productivity and costs home page: 

www.bls.gov/lpc/#data. 

______________ 

The preliminary Productivity and Costs news release for third-quarter 2016 is scheduled to be 

released on Thursday, November 3, 2016 at 8:30 a.m. (EDT).
-3- 

Table A. Revised second-quarter 2016 measures: percent change from previous quarter at annual rate (Q to Q) and from same quarter a year 

ago (Y to Y)

Sector

 Nonfarm

 Business Business Manufacturing

 Durable

 Manufacturing

 Nondurable

 Manufacturing

Q to Q Y to Y Q to Q Y to Y Q to Q Y to Y Q to Q Y to Y Q to Q Y to Y

Labor productivity -0.6 -0.4 -0.8 -0.4 -0.4 0.9 2.4 1.2 -4.4 0.3

Output 1.1 1.1 1.2 1.2 -0.8 0.3 0.7 0.3 -2.6 0.2

Hours worked 1.7 1.5 2.0 1.7 -0.4 -0.6 -1.8 -0.9 1.9 -0.1

Hourly compensation 3.7 2.2 3.3 2.0 6.3 3.4 5.5 2.9 8.0 4.4

Real hourly compensation 1.1 1.1 0.7 0.9 3.7 2.3 2.9 1.8 5.4 3.3

Unit labor costs 4.3 2.6 4.1 2.4 6.7 2.5 3.0 1.7 13.0 4.1

Table B. Revised and previous measures: second quarter and first quarter 2016

Sector

 Nonfarm

 Business Business Manufacturing

 Durable

 Manufacturing

 Nondurable

 Manufacturing

Revised Previous Revised Previous Revised Previous Revised Previous Revised Previous

Percent change, annual rate, second quarter 2016

Labor productivity -0.6 -0.5 -0.8 -0.7 -0.4 -0.2 2.4 2.6 -4.4 -4.1

Output 1.1 1.2 1.2 1.4 -0.8 -0.8 0.7 0.5 -2.6 -2.4

Hours worked 1.7 1.8 2.0 2.1 -0.4 -0.7 -1.8 -2.0 1.9 1.8

Hourly compensation 3.7 1.5 3.3 1.1 6.3 2.9 5.5 2.4 8.0 4.2

Real hourly compensation 1.1 -1.1 0.7 -1.4 3.7 0.4 2.9 -0.1 5.4 1.6

Unit labor costs 4.3 2.0 4.1 1.7 6.7 3.1 3.0 -0.1 13.0 8.7

Percent change, annual rate, first quarter 2016

Labor productivity -0.6 -0.6 -0.7 -0.7 1.3 1.5 -0.4 -0.2 4.0 4.0

Output 0.7 0.7 0.8 0.8 0.6 0.7 -0.1 0.0 1.4 1.5

Hours worked 1.4 1.4 1.5 1.5 -0.8 -0.8 0.2 0.2 -2.5 -2.5

Hourly compensation -0.9 -0.8 -1.1 -0.9 -4.8 -4.6 -6.4 -5.9 -1.9 -2.1

Real hourly compensation -0.6 -0.4 -0.7 -0.5 -4.5 -4.3 -6.0 -5.6 -1.5 -1.8

Unit labor costs -0.3 -0.2 -0.4 -0.2 -6.0 -5.9 -6.0 -5.7 -5.6 -5.9

Table C. Nonfinancial corporations: preliminary second-quarter and revised first-quarter 2016 productivity and cost measures

Labor

productivity Output

Hours

worked

Hourly 

compensation

Real hourly 

compensation

Unit labor 

costs Unit profits

Implicit price 

deflator

Percent change, annual rate, second quarter 2016

Q to Q -2.1 -0.7 1.4 3.7 1.1 5.9 -17.0 1.9

Y to Y -0.1 1.6 1.8 1.4 0.3 1.5 -9.1 -0.1

Percent change, annual rate, first quarter 2016

Q to Q Revised 1.3 1.9 0.6 -1.9 -1.6 -3.2 30.7 -2.0

Q to Q Previous 1.4 2.0 0.6 -1.8 -1.5 -3.1 30.6 -2.0
-4- 

TECHNICAL NOTES

Labor Hours 

Hours 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 wage and salary workers in nonfarm establishments, 

counting a person who is employed by two or more establishments at each place of employment. 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) 

for 2001 forward and data from the BLS Hours at Work survey, conducted for this purpose, 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 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 correct 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.

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 76 percent of the value of GDP in 2015. Nonfarm business, which 

excludes farming, accounted for about 75 percent of GDP in 2015. 

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 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; 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 50 percent of the value of 

GDP in 2015. 

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. 
-5- 

Labor Compensation 

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

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

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

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

private households are subtracted from compensation of domestic employees to derive employee 

compensation for the business sector. The labor compensation of proprietors cannot be explicitly identified 

and must be estimated. This is done by assuming that proprietors have the same hourly compensation as 

employees in the same sector. The quarterly labor productivity and cost measures do not contain estimates of 

compensation for unpaid family workers. 

Unit Labor Costs 

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 2009=100. Annual data are presented both as index number series 

and percent changes from the previous year. 

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

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

numbers to three decimal places. 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 dprweb@bls.gov). 

For a more detailed explanation of methodology see "Technical Information About the Major Sector 

Productivity and Costs Methods" at www.bls.gov/lpc/lpcmethods.pdf. 

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

phone: 202-691-5606; Federal Relay Service number: 1-800-877-8339. 
-6- 

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

seasonally adjusted.

 Real

 Hourly hourly Unit Implicit

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)

2016 II -0.8 r 1.2 r 2.0 r 3.3 r 0.7 r 4.1 r -0.4 r 2.2 r

 I -0.7 0.8 1.5 -1.1 r -0.7 r -0.4 r 1.4 r 0.4 

2015 ANNUAL 0.8 3.1 2.3 2.8 2.7 2.0 -1.0 0.7 

2015 IV -2.5 0.8 3.4 2.9 2.1 5.5 -6.7 0.1 

 III 2.3 2.1 -0.2 2.9 1.6 0.6 1.3 0.9 

 II 1.5 3.0 1.6 5.1 2.6 3.6 0.0 2.1 

 I 0.7 2.3 1.6 1.6 4.6 0.9 -2.1 -0.4 

2014 ANNUAL 0.6 3.0 2.3 2.6 1.0 2.0 1.0 1.6 

2014 IV -1.8 2.8 4.7 3.3 3.6 5.1 -6.5 -0.1 

 III 3.4 6.4 2.9 3.2 2.3 -0.2 3.3 1.3 

 II 1.8 5.0 3.1 -1.8 -3.8 -3.6 10.4 2.3 

 I -3.6 -2.0 1.6 6.5 4.1 10.4 -8.9 1.5 

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

 Percent change from corresponding quarter of previous year

2016 II -0.4 1.2 r 1.7 2.0 r 0.9 r 2.4 r -1.2 r 0.9 

 I 0.1 1.7 1.6 2.5 1.4 2.3 r -1.1 0.9 

2015 ANNUAL 0.8 3.1 2.3 2.8 2.7 2.0 -1.0 0.7 

2015 IV 0.5 2.1 1.6 3.1 2.7 2.6 -1.9 0.7 

 III 0.7 2.6 1.9 3.2 3.1 2.5 -1.8 0.6 

 II 0.9 3.6 2.7 3.3 3.3 2.3 -1.4 0.7 

 I 1.0 4.1 3.1 1.5 1.6 0.5 1.1 0.8 

2014 ANNUAL 0.6 3.0 2.3 2.6 1.0 2.0 1.0 1.6 

2014 IV -0.1 3.0 3.1 2.7 1.5 2.8 -0.7 1.3 

 III 1.3 3.6 2.3 2.4 0.6 1.0 2.6 1.7 

 II 0.9 3.1 2.2 1.8 -0.3 0.9 3.1 1.8 

 I 0.4 2.1 1.7 3.7 2.2 3.3 -1.0 1.4 

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

 Indexes 2009=100

2016 II 105.8 r 118.9 r 112.5 r 116.3 r 104.2 r 109.9 r 110.7 r 110.3 r

 I 106.0 118.6 111.9 115.3 r 104.0 r 108.8 r 110.9 r 109.7 

2015 ANNUAL 106.2 117.6 110.7 114.3 103.4 107.5 111.7 109.3 

2015 IV 106.1 118.3 111.5 115.6 104.2 108.9 110.5 109.6 

 III 106.8 118.1 110.6 114.8 103.7 107.5 112.4 109.5 

 II 106.2 117.5 110.6 114.0 103.3 107.3 112.0 109.3 

 I 105.8 116.6 110.2 112.6 102.6 106.4 112.0 108.7 

2014 ANNUAL 105.4 114.1 108.2 111.1 100.7 105.4 112.9 108.5 

2014 IV 105.6 115.9 109.7 112.1 101.5 106.1 112.6 108.9 

 III 106.1 115.1 108.5 111.2 100.6 104.8 114.5 108.9 

 II 105.2 113.4 107.7 110.4 100.0 104.9 113.6 108.5 

 I 104.8 112.0 106.9 110.9 101.0 105.8 110.8 107.9 

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

See footnotes following Table 6. September 1, 2016

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

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

prices, seasonally adjusted.

 Real

 Hourly hourly Unit Implicit

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)

2016 II -0.6 r 1.1 r 1.7 r 3.7 r 1.1 r 4.3 r -0.4 r 2.3 r

 I -0.6 0.7 1.4 -0.9 r -0.6 r -0.3 r 2.1 r 0.7 

2015 ANNUAL 0.9 3.1 2.1 2.9 2.8 2.0 -0.4 1.0 

2015 IV -2.4 0.8 3.3 3.1 2.3 5.7 -6.2 0.5 

 III 2.0 1.8 -0.2 2.9 1.5 0.8 1.1 1.0 

 II 1.2 3.1 1.9 4.8 2.2 3.6 -0.1 2.0 

 I 1.1 2.4 1.3 1.8 4.8 0.7 -0.1 0.4 

2014 ANNUAL 0.8 3.0 2.2 2.8 1.1 2.0 1.3 1.7 

2014 IV -1.6 2.7 4.4 3.6 3.9 5.2 -6.3 0.1 

 III 4.2 6.5 2.3 3.9 3.0 -0.2 4.5 1.8 

 II 2.0 5.1 3.0 -1.7 -3.6 -3.7 9.8 1.9 

 I -3.7 -1.8 2.0 6.2 3.8 10.2 -9.2 1.4 

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

 Percent change from corresponding quarter of previous year

2016 II -0.4 1.1 1.5 2.2 r 1.1 r 2.6 r -0.9 r 1.1 

 I 0.0 1.6 1.6 2.4 r 1.3 r 2.4 r -0.8 r 1.0 

2015 ANNUAL 0.9 3.1 2.1 2.9 2.8 2.0 -0.4 1.0 

2015 IV 0.4 2.0 1.6 3.1 2.7 2.7 -1.4 0.9 

 III 0.7 2.5 1.8 3.2 3.1 2.6 -1.4 0.8 

 II 1.2 3.7 2.5 3.5 3.5 2.3 -0.6 1.0 

 I 1.4 4.2 2.7 1.9 2.0 0.5 1.8 1.0 

2014 ANNUAL 0.8 3.0 2.2 2.8 1.1 2.0 1.3 1.7 

2014 IV 0.2 3.1 2.9 2.9 1.7 2.7 -0.6 1.3 

 III 1.6 3.8 2.2 2.6 0.8 1.0 3.0 1.8 

 II 1.0 3.1 2.1 1.9 -0.1 0.9 3.4 2.0 

 I 0.3 2.0 1.7 3.8 2.3 3.4 -0.4 1.8 

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

 Indexes 2009=100

2016 II 106.0 r 119.0 r 112.3 r 116.7 r 104.5 r 110.1 r 110.8 r 110.3 r

 I 106.2 118.7 111.8 115.6 r 104.3 r 108.9 r 110.9 r 109.7 

2015 ANNUAL 106.5 117.8 110.6 114.5 103.6 107.5 111.5 109.2 

2015 IV 106.3 118.5 111.4 115.9 104.4 109.0 110.3 109.5 

 III 107.0 118.2 110.5 115.0 103.8 107.5 112.1 109.4 

 II 106.4 117.7 110.6 114.2 103.4 107.3 111.8 109.1 

 I 106.1 116.8 110.1 112.9 102.9 106.3 111.8 108.6 

2014 ANNUAL 105.5 114.3 108.3 111.2 100.8 105.4 111.9 108.1 

2014 IV 105.9 116.1 109.7 112.4 101.7 106.1 111.8 108.5 

 III 106.3 115.3 108.5 111.4 100.7 104.8 113.7 108.5 

 II 105.2 113.5 107.9 110.3 100.0 104.9 112.4 108.0 

 I 104.7 112.1 107.1 110.8 100.9 105.8 109.8 107.5 

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

See footnotes following Table 6. September 1, 2016

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

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)

2016 II -0.4 r -0.8 -0.4 r 6.3 r 3.7 r 6.7 r

 I 1.3 r 0.6 r -0.8 -4.8 r -4.5 r -6.0 r

2015 ANNUAL 0.3 1.2 0.8 2.5 2.4 2.2 

2015 IV -1.1 -0.5 0.6 8.2 7.4 9.5 

 III 3.7 1.9 -1.7 4.4 3.0 0.7 

 II 1.5 0.6 -0.9 5.4 2.9 3.8 

 I -1.7 -1.4 0.3 -1.9 1.0 -0.2 

2014 ANNUAL 0.1 1.7 1.6 2.8 1.1 2.7 

2014 IV -1.1 2.7 3.9 3.7 4.1 4.9 

 III 1.2 2.8 1.6 3.3 2.4 2.0 

 II 1.9 5.3 3.4 -2.6 -4.5 -4.4 

 I 0.9 -0.3 -1.2 10.4 8.0 9.5 

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

 Percent change from corresponding quarter of previous year

2016 II 0.9 0.3 -0.6 3.4 r 2.3 r 2.5 r

 I 1.3 r 0.6 r -0.7 3.2 r 2.1 r 1.8 r

2015 ANNUAL 0.3 1.2 0.8 2.5 2.4 2.2 

2015 IV 0.6 0.1 -0.4 4.0 3.5 3.4 

 III 0.6 1.0 0.4 2.9 2.7 2.3 

 II 0.0 1.2 1.2 2.6 2.6 2.6 

 I 0.1 2.4 2.3 0.6 0.7 0.5 

2014 ANNUAL 0.1 1.7 1.6 2.8 1.1 2.7 

2014 IV 0.7 2.6 1.9 3.6 2.4 2.9 

 III 0.5 2.4 1.9 2.4 0.6 1.8 

 II -0.4 1.5 2.0 1.8 -0.3 2.2 

 I -0.5 0.0 0.5 3.3 1.9 3.8 

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

 Indexes 2009=100

2016 II 120.3 r 129.0 r 107.2 r 113.6 r 101.8 r 94.5 r

 I 120.4 r 129.2 r 107.4 111.9 r 100.9 r 93.0 r

2015 ANNUAL 119.6 128.8 107.7 110.7 100.2 92.5 

2015 IV 120.0 129.1 107.6 113.3 102.1 94.4 

 III 120.3 129.2 107.4 111.1 100.3 92.3 

 II 119.3 128.6 107.9 109.9 99.5 92.1 

 I 118.8 128.4 108.1 108.4 98.8 91.3 

2014 ANNUAL 119.2 127.4 106.8 107.9 97.8 90.5 

2014 IV 119.3 128.9 108.0 109.0 98.6 91.3 

 III 119.6 128.0 107.0 108.0 97.6 90.2 

 II 119.3 127.1 106.6 107.1 97.0 89.8 

 I 118.7 125.5 105.7 107.8 98.2 90.8 

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

See footnotes following Table 6. September 1, 2016

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

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)

2016 II 2.4 r 0.7 r -1.8 r 5.5 r 2.9 r 3.0 r

 I -0.4 r -0.1 r 0.2 -6.4 r -6.0 r -6.0 r

2015 ANNUAL 0.0 0.5 0.5 3.0 2.8 2.9 

2015 IV -2.1 -1.4 0.7 9.4 8.5 11.8 

 III 5.1 2.3 -2.7 3.9 2.5 -1.1 

 II 2.2 0.5 -1.7 5.2 2.6 2.9 

 I -4.0 -4.0 0.1 -0.4 2.5 3.8 

2014 ANNUAL 0.7 2.8 2.1 2.4 0.7 1.7 

2014 IV -0.4 1.9 2.3 4.3 4.6 4.7 

 III 0.8 3.7 2.9 3.4 2.5 2.6 

 II 2.1 7.2 4.9 -2.7 -4.6 -4.7 

 I 1.5 0.4 -1.1 10.6 8.2 9.0 

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

 Percent change from corresponding quarter of previous year

2016 II 1.2 r 0.3 -0.9 r 2.9 r 1.8 r 1.7 r

 I 1.2 0.3 -0.9 2.9 r 1.8 r 1.7 

2015 ANNUAL 0.0 0.5 0.5 3.0 2.8 2.9 

2015 IV 0.2 -0.7 -0.9 4.5 4.0 4.2 

 III 0.7 0.2 -0.5 3.2 3.1 2.5 

 II -0.4 0.5 0.9 3.1 3.1 3.5 

 I -0.4 2.1 2.5 1.1 1.2 1.5 

2014 ANNUAL 0.7 2.8 2.1 2.4 0.7 1.7 

2014 IV 1.0 3.3 2.2 3.8 2.6 2.8 

 III 1.0 3.9 2.9 1.7 -0.1 0.7 

 II 0.3 3.0 2.6 1.3 -0.8 0.9 

 I 0.3 1.0 0.7 2.7 1.3 2.4 

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

 Indexes 2009=100 

2016 II 122.1 r 134.1 r 109.8 r 112.2 r 100.6 r 91.9 r

 I 121.4 r 133.9 r 110.3 110.7 r 99.9 r 91.2 r

2015 ANNUAL 121.1 133.8 110.6 109.8 99.4 90.7 

2015 IV 121.5 133.9 110.2 112.6 101.4 92.6 

 III 122.2 134.4 110.0 110.1 99.4 90.1 

 II 120.7 133.6 110.8 109.0 98.8 90.4 

 I 120.0 133.5 111.2 107.6 98.1 89.7 

2014 ANNUAL 121.0 133.1 110.0 106.7 96.7 88.1 

2014 IV 121.2 134.8 111.2 107.8 97.5 88.9 

 III 121.3 134.2 110.6 106.6 96.4 87.9 

 II 121.1 132.9 109.8 105.8 95.8 87.3 

 I 120.5 130.7 108.5 106.5 97.0 88.4 

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

See footnotes following Table 6. September 1, 2016

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

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)

2016 II -4.4 r -2.6 r 1.9 r 8.0 r 5.4 r 13.0 r

 I 4.0 1.4 r -2.5 -1.9 r -1.5 r -5.6 r

2015 ANNUAL 0.5 1.9 1.5 1.7 1.6 1.3 

2015 IV 0.1 0.6 0.5 6.1 5.2 6.0 

 III 1.5 1.4 -0.1 5.5 4.1 4.0 

 II 0.3 0.7 0.4 6.1 3.5 5.8 

 I 1.0 1.8 0.8 -4.7 -1.8 -5.6 

2014 ANNUAL 0.0 0.6 0.6 3.4 1.8 3.5 

2014 IV -2.7 3.7 6.6 3.0 3.4 5.8 

 III 2.6 1.9 -0.7 2.9 2.0 0.3 

 II 2.5 3.3 0.8 -2.6 -4.5 -5.0 

 I 0.3 -1.0 -1.3 10.0 7.6 9.7 

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

 Percent change from corresponding quarter of previous year

2016 II 0.3 0.2 r -0.1 4.4 r 3.3 r 4.1 r

 I 1.5 1.0 -0.4 3.9 r 2.8 r 2.4 r

2015 ANNUAL 0.5 1.9 1.5 1.7 1.6 1.3 

2015 IV 0.7 1.1 0.4 3.2 2.7 2.4 

 III 0.0 1.9 1.9 2.4 2.3 2.4 

 II 0.3 2.0 1.7 1.8 1.7 1.5 

 I 0.8 2.7 1.8 -0.4 -0.3 -1.2 

2014 ANNUAL 0.0 0.6 0.6 3.4 1.8 3.5 

2014 IV 0.7 2.0 1.3 3.2 2.0 2.6 

 III 0.7 1.0 0.2 3.5 1.8 2.8 

 II -0.7 0.2 0.8 2.6 0.5 3.3 

 I -0.9 -0.7 0.2 4.4 2.9 5.3 

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

 Indexes 2009=100

2016 II 113.1 r 116.7 r 103.2 r 115.8 r 103.7 r 102.4 r

 I 114.4 r 117.4 r 102.7 113.5 r 102.4 r 99.3 r

2015 ANNUAL 113.0 116.6 103.2 111.7 101.1 98.8 

2015 IV 113.2 117.0 103.3 114.1 102.8 100.7 

 III 113.2 116.8 103.2 112.4 101.5 99.3 

 II 112.8 116.4 103.2 110.9 100.5 98.3 

 I 112.7 116.2 103.1 109.3 99.6 96.9 

2014 ANNUAL 112.5 114.4 101.7 109.7 99.5 97.6 

2014 IV 112.4 115.7 102.9 110.6 100.1 98.3 

 III 113.2 114.7 101.3 109.7 99.2 96.9 

 II 112.5 114.1 101.5 109.0 98.7 96.9 

 I 111.8 113.2 101.3 109.7 99.9 98.1 

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

See footnotes following Table 6. September 1, 2016

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

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

unit profits, and prices, seasonally adjusted.

 Real

 Hourly hourly Unit Total Implicit

Year Labor compen- compen- Unit nonlabor unit Unit price

and produc- Hours sation sation labor costs costs profits deflator

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

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

 Percent change from previous quarter at annual rate (5)

2016 II -2.1 -0.7 1.4 3.7 1.1 5.9 3.4 5.1 -17.0 1.9 

 I 1.3 r 1.9 r 0.6 -1.9 r -1.6 r -3.2 r -12.1 -6.1 30.7 r -2.0 

2015 ANNUAL 0.9 3.2 2.2 2.9 2.8 2.0 0.6 1.5 -6.6 0.3 

2015 IV -0.8 2.7 3.6 1.9 1.1 2.7 13.7 6.1 -37.1 -1.0 

 III 1.1 2.6 1.5 1.9 0.6 0.8 0.7 0.8 0.0 0.7 

 II 1.5 2.4 0.9 3.9 1.4 2.3 0.1 1.6 -17.0 -1.3 

 I -1.2 0.2 1.4 5.8 8.9 7.0 1.2 5.1 -11.6 2.4 

2014 ANNUAL 1.2 3.9 2.7 2.5 0.8 1.3 -0.4 0.7 1.5 0.8 

2014 IV 1.5 4.9 3.4 1.7 2.0 0.2 -1.2 -0.3 -5.5 -1.1 

 III 4.2 7.0 2.7 2.1 1.3 -2.0 -2.1 -2.0 15.0 0.4 

 II 1.1 6.2 5.0 -2.6 -4.5 -3.7 -1.4 -3.0 37.2 2.0 

 I 1.0 2.7 1.6 9.3 6.9 8.1 0.3 5.5 -19.9 1.5 

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

 Percent change from corresponding quarter of previous year

2016 II -0.1 1.6 1.8 1.4 0.3 1.5 1.0 1.4 -9.1 -0.1 

 I 0.8 2.4 1.6 1.4 r 0.4 0.7 0.2 0.5 -9.1 -0.9 

2015 ANNUAL 0.9 3.2 2.2 2.9 2.8 2.0 0.6 1.5 -6.6 0.3 

2015 IV 0.2 2.0 1.8 3.4 2.9 3.2 3.8 3.4 -17.6 0.2 

 III 0.7 2.5 1.8 3.3 3.2 2.6 0.2 1.8 -8.7 0.2 

 II 1.5 3.6 2.1 3.3 3.3 1.8 -0.5 1.1 -5.5 0.1 

 I 1.4 4.6 3.1 1.7 1.8 0.3 -0.9 -0.1 7.2 0.9 

2014 ANNUAL 1.2 3.9 2.7 2.5 0.8 1.3 -0.4 0.7 1.5 0.8 

2014 IV 1.9 5.2 3.2 2.5 1.3 0.6 -1.1 0.0 4.5 0.7 

 III 1.8 4.8 2.9 2.3 0.6 0.5 -0.7 0.1 6.3 1.0 

 II 0.0 2.8 2.8 1.8 -0.3 1.7 0.5 1.3 2.1 1.4 

 I 0.9 2.9 1.9 3.4 1.9 2.4 -0.2 1.6 -7.0 0.3 

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

 Indexes 2009=100

2016 II 109.8 125.7 114.5 115.4 103.4 105.1 98.2 102.8 129.5 105.6 

 I 110.3 r 125.9 r 114.1 114.3 r 103.1 r 103.6 r 97.3 r 101.5 r 135.7 r 105.1 

2015 ANNUAL 109.9 124.1 112.9 113.9 103.1 103.7 98.1 101.8 140.2 105.8 

2015 IV 110.0 125.3 114.0 114.9 103.5 104.4 100.5 103.1 126.9 105.6 

 III 110.2 124.5 113.0 114.3 103.2 103.7 97.4 101.6 142.5 105.9 

 II 109.9 123.7 112.5 113.8 103.1 103.5 97.2 101.4 142.5 105.7 

 I 109.5 122.9 112.3 112.7 102.7 102.9 97.2 101.0 149.3 106.1 

2014 ANNUAL 108.9 120.3 110.5 110.7 100.3 101.6 97.5 100.2 150.1 105.5 

2014 IV 109.8 122.9 111.9 111.1 100.6 101.2 96.9 99.8 153.9 105.4 

 III 109.4 121.4 111.0 110.7 100.1 101.1 97.2 99.8 156.1 105.7 

 II 108.3 119.4 110.2 110.1 99.8 101.6 97.7 100.3 150.8 105.6 

 I 108.0 117.6 108.9 110.8 100.9 102.6 98.1 101.1 139.3 105.1 

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

See footnotes following Table 6. September 1, 2016

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

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

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

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

Analysis.

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

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

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

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

between –1.6 and 1.4 index points approximately 95 percent of the time. This interval is based on the 

performance of this measure between the fourth quarter of 1995 and the first quarter of 2016. 

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 1978-2015 is based on the Consumer Price Index research series (CPI-U-RS).

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

subsidies, net interest and miscellaneous payments, business current transfer payments, rental income of 

persons, and the current surplus of government enterprises.

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

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

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

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

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

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

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

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

adjustments.