For release 10:00 a.m. (EST) Tuesday, December 21, 2010 USDL-10-1749

Technical Information: (202) 691-5654 • ilchelp@bls.gov • www.bls.gov/ilc

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

INTERNATIONAL COMPARISONS OF MANUFACTURING PRODUCTIVITY

AND UNIT LABOR COST TRENDS, 2009

Manufacturing labor productivity decreased in 2009 in 12 of the 19 economies compared by the Bureau of 

Labor Statistics. The United States had the largest productivity increase, 7.7 percent, and Japan had the steepest 

productivity decline, -11.4 percent (see chart 1). For the first time, both output and hours in manufacturing 

declined in all 19 economies compared. In most economies, output declined by more than 10 percent and hours 

by more than 8 percent (see chart 2). 

The data presented for the United States differ from those in the BLS Productivity and Costs news release. (See 

technical notes.) 

-25 -20 -15 -10 -5 0 5 10

United Kingdom

Taiwan

Sweden

Spain

Singapore

Norway

Netherlands

Korea, Republic of

Japan

Italy

Germany

France

Finland

Denmark

Czech Republic

Canada

Belgium

Australia

United States

Percent change

-25 -20 -15 -10 -5 0 5 10

United Kingdom

Taiwan

Sweden

Spain

Singapore

Norway

Netherlands

Korea, Republic of

Japan

Italy

Germany

France

Finland

Denmark

Czech Republic

Canada

Belgium

Australia

United States

Output

Hours 

Percent change

Chart 2. Percent changes in manufacturing output

and hours, 2008-2009

Chart 1. Percent changes in manufacturing output

per hour, 2008-2009
- 2 - 

The trends in manufacturing for 2009 stand in contrast to the trends seen over the last 30 years. Between 1979 

and 2009, labor productivity and output increased in all economies compared in this report (see chart 3 and 

chart 4). In addition, the average annual declines in hours in most economies over the last 30 years were smaller 

than the declines in hours from 2008 to 2009 (see chart 4). 

-5 0 5 10

United Kingdom

Taiwan

Sweden

Spain

Singapore

Norway

Netherlands

Japan

Italy

Germany

France

Finland

Denmark

Canada

Belgium

Australia

United States

Average annual percent change

-5 0 5 10

-5 0 5 10

United Kingdom

Taiwan

Sweden

Spain

Singapore

Norway

Netherlands

Japan

Italy

Germany

France

Finland

Denmark

Canada

Belgium

Australia

United States

Output

Hours 

Average annual percent change

Changes in this news release

New country estimates for the Czech Republic and Finland: For the first time, this news release 

includes data for the Czech Republic and Finland. Data for both countries follow internationally accepted 

standards for national accounts and for industrial classification. 

Additional indicators in the supplementary tables: Growth rates for average hours, employment, and 

hourly compensation are no longer shown in this news release. These data are available in the 

supplementary tables at http://www.bls.gov/ilc/prodsuppt.xls. 

Trade-weighted data: The chart and table with data on trade-weighted unit labor cost trends are no longer 

included in this news release. 

Chart 3. Average annual percent changes in manufacturing output per hour, 1979-2009Chart 4. Average annual percent changes in manufacturing output and hours, 1979-2009
- 3 - 

Unit labor costs are the cost of labor input required to produce one unit of output and can be expressed either in 

national currency units or in U.S. dollars. Expressed in national currency units, manufacturing unit labor costs 

increased in all but 4 economies compared in 2009, with the largest increases in Germany and Finland (see 

chart 5). However, due to the strength of the U.S. dollar, which appreciated against all currencies except the 

Japanese yen, unit labor costs converted to U.S. dollars decreased in 12 of the foreign economies. 

In 2009, U.S. manufacturing labor cost competitiveness declined relative to 10 economies because unit labor 

costs on a U.S. dollar basis decreased more in those economies than in the United States. U.S. labor cost 

competitiveness improved relative to the other 8 foreign economies. In Japan, a large increase in national 

currency unit labor costs and a strong yen combined to push unit labor costs up more than 20 percent on a U.S. 

dollar basis. 

Send us your inquiries or feedback. 

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Find additional data.

The data tables with annual indexes and growth rates back to 1950 used to prepare this report are available at 

http://www.bls.gov/ilc/#productivity. 

-15 -10 -5 0 5 10 15 20 25

United Kingdom

Taiwan

Sweden

Spain

Singapore

Norway

Netherlands

Korea, Republic of

Japan

Italy

Germany

France

Finland

Denmark

Czech Republic

Canada

Belgium

Australia

United States

Chart 5. Percent changes in manufacturing unit labor costs, 2008–2009

National currency basis

U.S. dollar basis

Percent change
- 4 - 

Table 1. Output per hour, output, and hours

Manufacturing, 19 countries or areas, 1979–2009

Average annual rates of change

Country or area Indicator 1979–2009 1979–1990 1990–2000 2000–2007 2007–2008 2008–2009

United States Output per hour 4.2 3.0 4.3 6.2 0.4 7.7

 Output 2.6 2.3 4.2 2.9 -3.6 -5.9

 Hours -1.6 -0.6 -0.1 -3.1 -4.0 -12.6

Australia Output per hour 2.0 2.1 1.9 2.4 -3.1 4.4

 Output 1.3 1.6 1.5 1.6 -1.1 -2.3

 Hours -0.6 -0.5 -0.4 -0.8 2.0 -6.5

Belgium Output per hour 3.0 4.2 2.8 2.1 1.0 1.5

 Output 1.3 2.6 1.5 0.8 -0.3 -8.8

 Hours -1.7 -1.6 -1.2 -1.2 -1.3 -10.2

Canada Output per hour 2.1 2.1 3.6 0.8 -2.4 0.9

 Output 1.3 1.9 4.2 -0.6 -6.1 -11.3

 Hours -0.8 -0.2 0.5 -1.4 -3.7 -12.1

Czech Republic Output per hour NA NA NA 7.4 6.4 -3.3

 Output NA NA NA 7.4 7.8 -11.9

 Hours NA NA NA 0.0 1.4 -8.8

Denmark Output per hour 2.3 2.2 2.3 3.0 2.6 -1.4

 Output 0.9 1.3 1.9 0.6 3.7 -12.1

 Hours -1.4 -1.0 -0.4 -2.4 1.1 -10.9

Finland Output per hour 5.3 4.9 6.4 6.8 1.2 -8.5

 Output 3.7 3.5 5.4 6.1 -0.1 -19.9

 Hours -1.5 -1.4 -1.0 -0.7 -1.2 -12.5

France Output per hour 3.2 3.8 4.0 3.1 -0.9 -7.2

 Output 1.0 1.5 2.0 1.1 -2.1 -11.2

 Hours -2.1 -2.2 -1.9 -2.0 -1.1 -4.3

Germany Output per hour 2.3 2.1 3.3 3.5 -0.2 -9.3

 Output 0.5 1.2 0.6 2.1 0.5 -18.2

 Hours -1.8 -0.9 -2.6 -1.3 0.7 -9.8

Italy Output per hour 1.9 3.4 2.6 0.3 -3.6 -5.9

 Output 0.7 2.6 1.4 0.3 -4.9 -15.8

 Hours -1.1 -0.8 -1.2 -0.1 -1.3 -10.5

Japan Output per hour 3.0 3.8 3.4 3.8 0.3 -11.4

 Output 1.6 4.7 0.8 2.3 -3.0 -22.0

 Hours -1.4 0.9 -2.4 -1.4 -3.3 -11.9

Korea, Republic of Output per hour NA NA 10.5 8.1 0.7 1.8

 Output 8.4 10.8 8.4 6.8 2.9 -1.6

 Hours NA NA -1.9 -1.1 2.1 -3.4

Netherlands Output per hour 3.0 3.3 3.5 3.7 -2.2 -4.4

 Output 1.8 2.4 2.7 1.9 -1.9 -8.8

 Hours -1.1 -0.9 -0.8 -1.7 0.3 -4.5

Norway Output per hour 1.7 1.9 0.7 3.0 0.9 0.8

 Output 0.7 -0.5 1.0 2.6 2.6 -5.8

 Hours -1.0 -2.3 0.3 -0.3 1.7 -6.5

Singapore Output per hour 4.0 4.0 7.2 2.0 -9.3 -0.3

 Output 6.1 7.3 7.4 5.5 -4.2 -4.1

 Hours 2.1 3.2 0.2 3.5 5.7 -3.9

Spain Output per hour 2.2 3.3 2.0 1.9 -1.5 -0.8

 Output 1.4 2.1 2.8 1.2 -2.7 -13.6

 Hours -0.8 -1.2 0.8 -0.6 -1.3 -12.9

Sweden Output per hour 4.0 2.1 6.4 6.4 -3.0 -7.3

 Output 2.9 1.7 5.7 5.0 -2.9 -18.0

 Hours -1.1 -0.4 -0.6 -1.4 0.1 -11.5

Taiwan Output per hour 6.0 6.3 5.0 7.6 1.6 4.8

 Output 6.0 7.5 5.0 7.2 1.0 -4.4

 Hours 0.0 1.2 -0.1 -0.4 -0.6 -8.7

United Kingdom Output per hour 3.3 4.1 2.9 4.1 0.2 -3.4

 Output 0.2 0.9 0.9 0.0 -2.9 -10.8

 Hours -3.1 -3.1 -2.0 -3.9 -3.1 -7.6

NOTE: German data for years before 1991 pertain to the former West Germany.

NA=data not available.
- 5 - 

Table 2. Unit labor costs (ULC) in national currency, compensation, and output

Manufacturing, 19 countries or areas, 1979–2009

Average annual rates of change

Country or area Indicator 1979–2009 1979–1990 1990–2000 2000–2007 2007–2008 2008–2009

United States ULC in nat. cur. 0.3 2.5 -0.4 -2.3 3.5 -2.3

Compensation 2.9 4.9 3.8 0.6 -0.2 -8.0

Output 2.6 2.3 4.2 2.9 -3.6 -5.9

Australia ULC in nat. cur. NA NA 1.7 3.0 4.5 4.9

Compensation NA NA 3.2 4.6 3.4 2.4

Output 1.3 1.6 1.5 1.6 -1.1 -2.3

Belgium ULC in nat. cur. 1.1 1.8 0.2 0.7 2.3 5.0

Compensation 2.4 4.4 1.6 1.6 1.9 -4.3

Output 1.3 2.6 1.5 0.8 -0.3 -8.8

Canada ULC in nat. cur. 2.3 4.6 -0.3 2.9 2.7 -1.2

Compensation 3.6 6.5 3.8 2.2 -3.5 -12.3

Output 1.3 1.9 4.2 -0.6 -6.1 -11.3

Czech Republic ULC in nat. cur. NA NA NA -0.2 -1.4 2.2

Compensation NA NA NA 7.2 6.4 -9.9

Output NA NA NA 7.4 7.8 -11.9

Denmark ULC in nat. cur. 2.9 5.7 0.7 1.9 -0.3 4.3

Compensation 3.8 7.0 2.5 2.4 3.4 -8.4

Output 0.9 1.3 1.9 0.6 3.7 -12.1

Finland ULC in nat. cur. 1.2 5.5 -2.0 -2.9 3.3 13.9

Compensation 4.9 9.2 3.3 3.0 3.3 -8.8

Output 3.7 3.5 5.4 6.1 -0.1 -19.9

France ULC in nat. cur. 2.2 5.1 -0.4 0.4 3.7 9.7

Compensation 3.2 6.7 1.6 1.4 1.6 -2.6

Output 1.0 1.5 2.0 1.1 -2.1 -11.2

Germany ULC in nat. cur. 2.0 3.3 1.4 -1.3 2.8 15.8

Compensation 2.4 4.6 2.0 0.8 3.3 -5.3

Output 0.5 1.2 0.6 2.1 0.5 -18.2

Italy ULC in nat. cur. 5.0 8.8 1.7 2.8 7.2 12.0

Compensation 5.8 11.6 3.2 3.0 2.0 -5.7

Output 0.7 2.6 1.4 0.3 -4.9 -15.8

Japan ULC in nat. cur. -0.5 0.7 -0.9 -3.8 1.6 11.8

Compensation 1.1 5.5 -0.1 -1.5 -1.5 -12.8

Output 1.6 4.7 0.8 2.3 -3.0 -22.0

Korea, Republic of ULC in nat. cur. 4.2 7.9 2.6 1.6 0.1 3.8

Compensation 12.9 19.5 11.3 8.5 3.0 2.2

Output 8.4 10.8 8.4 6.8 2.9 -1.6

Netherlands ULC in nat. cur. 0.9 0.8 0.4 0.0 6.2 8.4

Compensation 2.7 3.2 3.1 1.8 4.2 -1.1

Output 1.8 2.4 2.7 1.9 -1.9 -8.8

Norway ULC in nat. cur. 4.5 6.9 3.5 2.0 4.7 4.7

Compensation 5.2 6.4 4.6 4.6 7.4 -1.4

Output 0.7 -0.5 1.0 2.6 2.6 -5.8

Singapore ULC in nat. cur. 0.8 3.7 -1.5 -1.1 11.5 -4.0

Compensation 7.0 11.3 5.8 4.4 6.9 -8.0

Output 6.1 7.3 7.4 5.5 -4.2 -4.1

Spain ULC in nat. cur. 4.7 7.8 2.7 2.5 7.1 2.9

Compensation 6.1 10.1 5.5 3.8 4.2 -11.2

Output 1.4 2.1 2.8 1.2 -2.7 -13.6

Sweden ULC in nat. cur. 1.7 6.6 -2.2 -2.2 6.4 12.2

Compensation 4.6 8.4 3.4 2.7 3.3 -8.0

Output 2.9 1.7 5.7 5.0 -2.9 -18.0

Taiwan ULC in nat. cur. 0.9 5.5 0.2 -3.8 0.9 -7.4

Compensation 6.9 13.5 5.2 3.1 1.9 -11.5

Output 6.0 7.5 5.0 7.2 1.0 -4.4

United Kingdom ULC in nat. cur. 3.2 6.2 1.5 0.9 1.8 6.3

Compensation 3.4 7.1 2.4 0.9 -1.1 -5.1

Output 0.2 0.9 0.9 0.0 -2.9 -10.8

NOTE: German data for years before 1991 pertain to the former West Germany.

NA=data not available.
- 6 - 

Table 3. Unit labor costs (ULC) in U.S. dollars and in national currency

Manufacturing, 19 countries or areas, 1979–2009

Average annual rates of change

Country or area Indicator 1979–2009 1979–1990 1990–2000 2000–2007 2007–2008 2008–2009

United States ULC in U.S. dollars 0.3 2.5 -0.4 -2.3 3.5 -2.3

ULC in nat. cur. 0.3 2.5 -0.4 -2.3 3.5 -2.3

Exchange rates -- -- -- -- -- --

Australia ULC in U.S. dollars NA NA -1.3 8.5 6.3 -2.6

ULC in nat. cur. NA NA 1.7 3.0 4.5 4.9

Exchange rates -1.1 -3.2 -2.9 5.4 1.7 -7.1

Belgium ULC in U.S. dollars 1.1 0.6 -2.5 6.6 9.8 -0.7

ULC in nat. cur. 1.1 1.8 0.2 0.7 2.3 5.0

Exchange rates 0.0 -1.2 -2.6 5.8 7.4 -5.4

Canada ULC in U.S. dollars 2.4 4.6 -2.7 7.7 3.5 -7.7

ULC in nat. cur. 2.3 4.6 -0.3 2.9 2.7 -1.2

Exchange rates 0.1 0.0 -2.4 4.8 0.7 -6.6

Czech Republic ULC in U.S. dollars NA NA NA 9.2 18.7 -9.9

ULC in nat. cur. NA NA NA -0.2 -1.4 2.2

Exchange rates NA NA NA 9.4 20.3 -11.9

Denmark ULC in U.S. dollars 2.8 4.1 -2.0 7.8 6.6 -0.9

ULC in nat. cur. 2.9 5.7 0.7 1.9 -0.3 4.3

Exchange rates -0.1 -1.5 -2.6 5.8 6.9 -5.0

Finland ULC in U.S. dollars 0.9 5.7 -7.0 2.7 11.0 7.8

ULC in nat. cur. 1.2 5.5 -2.0 -2.9 3.3 13.9

Exchange rates -0.3 0.2 -5.1 5.8 7.4 -5.4

France ULC in U.S. dollars 1.9 2.7 -3.0 6.2 11.4 3.8

ULC in nat. cur. 2.2 5.1 -0.4 0.4 3.7 9.7

Exchange rates -0.3 -2.2 -2.6 5.8 7.4 -5.4

Germany ULC in U.S. dollars 2.9 4.5 -1.3 4.4 10.4 9.6

ULC in nat. cur. 2.0 3.3 1.4 -1.3 2.8 15.8

Exchange rates 0.9 1.1 -2.7 5.8 7.4 -5.4

Italy ULC in U.S. dollars 3.2 5.2 -3.8 8.7 15.2 6.0

ULC in nat. cur. 5.0 8.8 1.7 2.8 7.2 12.0

Exchange rates -1.7 -3.3 -5.4 5.8 7.4 -5.4

Japan ULC in U.S. dollars 2.3 4.6 2.1 -5.0 15.7 23.3

ULC in nat. cur. -0.5 0.7 -0.9 -3.8 1.6 11.8

Exchange rates 2.9 3.8 3.0 -1.3 13.9 10.4

Korea, Republic of ULC in U.S. dollars 0.9 4.1 -2.0 4.5 -15.3 -10.5

ULC in nat. cur. 4.2 7.9 2.6 1.6 0.1 3.8

Exchange rates -3.2 -3.4 -4.5 2.8 -15.4 -13.8

Netherlands ULC in U.S. dollars 1.7 1.7 -2.3 5.8 14.0 2.6

ULC in nat. cur. 0.9 0.8 0.4 0.0 6.2 8.4

Exchange rates 0.8 0.9 -2.7 5.8 7.4 -5.4

Norway ULC in U.S. dollars 3.7 4.9 0.0 8.1 8.7 -6.2

ULC in nat. cur. 4.5 6.9 3.5 2.0 4.7 4.7

Exchange rates -0.7 -1.9 -3.4 6.0 3.9 -10.4

Singapore ULC in U.S. dollars 2.2 5.5 -1.0 0.8 18.8 -6.7

ULC in nat. cur. 0.8 3.7 -1.5 -1.1 11.5 -4.0

Exchange rates 1.4 1.7 0.5 2.0 6.5 -2.8

Spain ULC in U.S. dollars 2.7 3.8 -3.0 8.5 15.0 -2.7

ULC in nat. cur. 4.7 7.8 2.7 2.5 7.1 2.9

Exchange rates -1.9 -3.7 -5.5 5.8 7.4 -5.4

Sweden ULC in U.S. dollars -0.3 3.5 -6.4 2.2 9.1 -3.5

ULC in nat. cur. 1.7 6.6 -2.2 -2.2 6.4 12.2

Exchange rates -1.9 -2.9 -4.3 4.5 2.6 -14.0

Taiwan ULC in U.S. dollars 1.2 8.3 -1.3 -4.5 5.1 -11.6

ULC in nat. cur. 0.9 5.5 0.2 -3.8 0.9 -7.4

Exchange rates 0.3 2.7 -1.5 -0.7 4.2 -4.5

United Kingdom ULC in U.S. dollars 2.2 4.5 -0.2 4.9 -5.7 -10.2

ULC in nat. cur. 3.2 6.2 1.5 0.9 1.8 6.3

Exchange rates -1.0 -1.6 -1.6 4.1 -7.4 -15.6

NOTE: German data for years before 1991 pertain to the former West Germany.

NA=data not available.

Exchange rates are value of foreign currency relative to the U.S. dollar.
- 7 - 

TECHNICAL NOTES

The comparisons in this release are based on data available to the Bureau of Labor Statistics as of November 4 

from national statistical offices of the 19 economies compared. Below is a summary of the concepts used in this 

release. For more detailed information, see http://www.bls.gov/ilc/#productivity. 

 

Definitions. Labor productivity is defined as real output per hour worked. Unit labor costs are defined as the 

cost of labor input required to produce one unit of output, and are computed as compensation in nominal terms 

divided by real output. 

Methodology. In general, the measures relate to total manufacturing as defined by the International Standard 

Industrial Classification (ISIC). Data for the United States and Canada are in accordance with the North 

American Industry Classification System (NAICS), except for compensation data for the United States before 

1987. For all economies, the measures are prepared according to the United Nations System of National 

Accounts 1993 (SNA 93) for the most recent years. For earlier years, data were compiled according to other 

systems of national accounts.

BLS constructs the trends in this release from three basic measures: output, total labor hours, and total 

compensation. In general, the output measures are real value added. Total labor hours refer to hours worked by 

all employed persons. Total compensation includes employer expenditures for direct pay, employer social 

insurance expenditures, and labor-related taxes and subsidies. 

Output for the United States. The U.S. manufacturing output series used in this release differs from the 

manufacturing output series that BLS publishes as part of its major sector productivity and costs measures for 

the United States.1

 The international labor comparisons program uses a value added output concept, while the 

major sector series is on a sectoral output basis, which is gross output less intra-sector sales and transfers. Even 

though BLS has determined that sectoral output is the correct concept for U.S. measures of productivity, there 

are other considerations that make value added the better concept for international comparisons of labor 

productivity, such as differences among economies in the extent of vertical integration of industries and the 

availability of value added data.

Level Comparisons. The BLS measures are limited to trend comparisons. BLS does not prepare level 

comparisons of manufacturing productivity because of data limitations and technical problems in comparing the 

levels of manufacturing output among economies. 

 

1 For more information about sectoral output, see http://www.bls.gov/lpc/.