The data in this release do not reflect the annual benchmark revision of the BLS Current 

Employment Statistics program data to be released on February 6, 2009. This benchmark will be 

incorporated in our next release on March 5, 2009. 

Internet address: http://www.bls.gov/lpc/ USDL 09-0116 

Historical, technical TRANSMISSION OF THIS 

 information: (202) 691-5606 MATERIAL IS EMBARGOED 

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

Media contact: (202) 691-5902 THURSDAY, FEBRUARY 5, 2009 

PRODUCTIVITY AND COSTS 

Preliminary Fourth Quarter and 

Annual Averages for 2008 

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

preliminary productivity data—as measured by output per hour of all persons—for the fourth 

quarter and for the full year 2008. The seasonally adjusted annual rates of productivity change 

in the fourth quarter and the annual average changes were: 

 Fourth Annual averages 

 quarter 2007-2008 

 Business sector 3.1 2.7 

 Nonfarm business sector 3.2 2.8 

In the fourth quarter of 2008, productivity increased 3.1 percent in the business sector, 

with output and hours decreasing 5.2 percent and 8.1 percent, respectively. Output per 

hour for the nonfarm business sector rose 3.2 percent as output declined 5.5 percent and 

hours fell 8.4 percent. For the full year 2008 productivity rose 2.7 percent in the business 

sector and 2.8 percent in the nonfarm business sector. 

 In the manufacturing sector, productivity changes were: 

 Fourth Annual averages 

 quarter 2007-2008 

 Manufacturing sector -3.0 1.3 

 Durable goods manufacturing -13.4 1.4 

 Nondurable goods manufacturing 7.6 1.0 

Manufacturing productivity decreased for the third consecutive quarter; output per hour fell at a 

3.0 percent annual rate in the fourth quarter. The fourth-quarter decline was concentrated in the 

durable goods sector. Output per hour in total manufacturing posted a 1.3 percent increase in 

2008 on an annual average basis. Output and hours in manufacturing, which includes about 12 

percent of U.S. business-sector employment, tend to vary more from quarter to quarter than data 

for the aggregate business and nonfarm business sectors. Fourth quarter productivity and related 

measures are summarized in table A, and annual average data in table B. Detailed information is 

presented in tables 1 through 5.
2 

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

from those used in preparing the business and nonfarm business series, and these measures are 

not directly comparable. Output measures for business and nonfarm business are based on 

measures of gross domestic product prepared by the Bureau of Economic Analysis of the U.S. 

Department of Commerce. Quarterly output measures for manufacturing reflect indexes of 

industrial production independently prepared by the Board of Governors of the Federal Reserve 

System. See Technical Notes for further information on data sources (page 8). 

Table A. Productivity and costs: Preliminary fourth-quarter 2008 measures 

(Seasonally adjusted annual rates) 

Sector 

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation 

Unit 

labor 

costs 

 Percent change from preceding quarter 

Business 3.1 -5.2 -8.1 4.7 15.3 1.5 

Nonfarm business 3.2 -5.5 -8.4 5.0 15.6 1.8 

Manufacturing -3.0 -16.7 -14.1 9.8 20.9 13.3 

 Durable -13.4 -26.1 -14.7 10.1 21.2 27.1 

 Nondurable 7.6 -6.5 -13.1 9.6 20.6 1.8 

 Percent change from same quarter a year ago 

Business 2.7 -1.0 -3.6 3.4 1.9 0.7 

Nonfarm business 2.7 -1.0 -3.6 3.5 1.9 0.7 

Manufacturing -1.4 -7.7 -6.5 5.1 3.6 6.6 

 Durable -3.6 -10.4 -7.0 5.5 4.0 9.5 

 Nondurable 0.4 -5.1 -5.5 4.5 3.0 4.1 

THIRD-TO-FOURTH QUARTER CHANGES, 2008 

Business 

 Productivity in the business sector increased by 3.1 percent in the fourth quarter of 2008, 

reflecting a decrease of 5.2 percent in output and an even greater decline of 8.1 percent in hours 

of all persons (seasonally adjusted annual rates). The decline in output was the largest since the 

first quarter of 1982 (-8.6 percent) and the drop in hours was the largest since first quarter 1975 

(-12.1 percent). When the fourth quarter of 2008 is compared to the fourth quarter of 2007, 

business sector productivity grew 2.7 percent, as output and hours fell 1.0 percent and 3.6 

percent, respectively (table A). Business sector productivity had grown at a 2.5 percent average 

annual rate for the 2000-2007 period. 

 Hourly compensation grew 4.7 percent in the fourth quarter of 2008, up from a 4.2 

percent increase one quarter earlier. This measure includes wages and salaries, supplements, 
3 

employer contributions to employee-benefit plans, and taxes. Real hourly compensation takes 

into account changes in consumer prices, which fell at a 9.2 percent annual rate in the fourth 

quarter. The 15.3 percent fourth-quarter increase in real hourly compensation was the largest 

since the first quarter of 1950 when it increased 16.1 percent. When the fourth quarter of 2008 is 

compared to the fourth quarter of 2007, real hourly compensation increased 1.9 percent. 

 Unit labor costs, which relate hourly compensation to output per hour, increased 1.5 

percent in the fourth quarter of 2008, as most of the 4.7 percent increase in hourly compensation 

was offset by the 3.1 percent productivity gain. 

Nonfarm Business 

In the nonfarm business sector, productivity rose 3.2 percent in the fourth quarter of 

2008, as output decreased 5.5 percent and hours of all persons—employees, proprietors, and 

unpaid family workers—fell more, 8.4 percent (seasonally adjusted annual rates). As in the 

business sector, the declines in output and hours were the largest since the first quarter of 1982 

for output (-8.7 percent) and the first quarter of 1975 for hours (-12.0 percent). During the fourquarter period ending with the fourth quarter of 2008, nonfarm business sector productivity grew 

2.7 percent—similar to the 2.5 percent average rate of growth from 2000 to 2007 (chart 1 and 

table 2). 

 Hourly compensation in the nonfarm business sector rose 5.0 percent in the fourth quarter 

of 2008 following a 4.2 percent increase in the third quarter. When the 9.2 percent decrease in 

consumer prices was factored in, real hourly compensation jumped 15.6 percent during the 

fourth quarter (seasonally adjusted annual rates). This was the largest increase in real hourly 

compensation since the beginning of the series in the second quarter of 1947. However, real 

hourly compensation had declined in each of the first three quarters of 2008, and as in the 

business sector, the change from the same quarter a year ago was 1.9 percent. 

Unit labor costs rose 1.8 percent in the fourth quarter of 2008, and 0.7 percent over the 

last four quarters (chart 2). As in the business sector, unit labor costs increased at a 1.4 percent 

average annual rate from 2000 to 2007. The implicit price deflator for nonfarm business output 

declined 0.5 percent in the fourth quarter after increasing 4.7 percent in the previous quarter. 

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2001 2002 2003 2004 2005 2006 2007 2008

Percent change

From previous quarter, compound annual rate

From same quarter a year ago

Chart 1. Output per Hour, Nonfarm Business, all persons, 2001:1-2007:4 Chart 1. Output per Hour, Nonfarm Business, all persons, 2001:1-2008:4

 

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2001 2002 2003 2004 2005 2006 2007 2008

Percent change

From previous quarter, compound annual rate

From same quarter a year ago

Chart 2. Unit Labor Costs, Nonfarm Business, all persons, 2001:1-2008:4
4 

Manufacturing 

Manufacturing productivity, output, and hours all declined in the fourth quarter of 2008; 

output per hour fell 3.0 percent, output dropped 16.7 percent, and hours fell 14.1 percent 

(seasonally adjusted annual rates). The decreases in hours and output were the largest for these 

series, which begin with data for the second quarter of 1987. From the fourth quarter of 2007 to 

the fourth quarter of 2008 manufacturing productivity decreased 1.4 percent, output fell 7.7 

percent and hours declined 6.5 percent (table A and chart 3). Manufacturing productivity had 

grown at a 3.7 percent average annual rate from 2000 to 2007. 

In the durable goods manufacturing sector, productivity dropped 13.4 percent in the 

fourth quarter of 2008, as output fell 26.1 percent and hours declined 14.7 percent (table 4). 

These were the largest decreases in output per hour, hours and output for the entire series dating 

back to second-quarter 1987. In the nondurable goods sector, productivity rose 7.6 percent in the 

fourth quarter as hours fell faster than output; output declined 6.5 percent and hours dropped 

13.1 percent (table 5). 

 Hourly compensation of all manufacturing workers increased 9.8 percent during the 

fourth quarter of 2008, reflecting increases of 10.1 percent in durable goods industries and 9.6 

percent in nondurable goods industries. When the decrease in consumer prices was taken into 

account, real hourly compensation in total manufacturing increased 20.9 percent in the fourth 

quarter, which was the largest increase in the series. 

Unit labor costs for the manufacturing sector rose 13.3 percent in fourth-quarter 2008. 

These cost increases were concentrated in durable goods manufacturing where unit labor costs 

rose 27.1 percent; unit labor costs rose 1.8 percent in nondurable goods industries. Over the last 

four quarters manufacturing unit labor costs increased 6.6 percent (chart 4). 

-16.0

-12.0

-8.0

-4.0

0.0

4.0

8.0

12.0

16.0

2001 2002 2003 2004 2005 2006 2007 2008

Percent change

From previous quarter, compound annual rate

From same quarter a year ago

Chart 3. Output per Hour, Manufacturing, all persons, 2001:1-2008:4

 

-16.0

-12.0

-8.0

-4.0

0.0

4.0

8.0

12.0

16.0

2001 2002 2003 2004 2005 2006 2007 2008

Percent change

From previous quarter, compound annual rate

From same quarter a year ago

Chart 4. Unit Labor Costs, Manufacturing, all persons, 2001:1-2008:4
5 

ANNUAL AVERAGE CHANGES, 2007-2008 

Business and Nonfarm Business 

When annual averages for 2008 were compared with annual averages for 2007, labor 

productivity increased 2.7 percent in the business sector and 2.8 percent in the nonfarm business 

sector. In both sectors, the productivity increases were the largest since similar gains in 2004, 

due more to the declines in hours than the small gains in output (table B). 

 Table B. Annual average changes in productivity and related measures, 1999-2008 

 Measure 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 

 Business: 

 Productivity ...................... 3.1 2.9 2.5 4.1 3.8 2.9 1.8 0.9 1.5 2.7 

 Output ............................... 5.1 3.9 0.3 1.5 3.1 4.2 3.5 3.0 2.0 1.0 

 Hours ................................ 2.0 1.0 -2.2 -2.5 -0.7 1.3 1.6 2.1 0.5 -1.7 

 Hourly compensation........ 4.9 7.1 4.2 3.5 4.1 3.8 4.0 3.8 4.2 3.3 

 Real hourly compensation 

............................................ 

2.8 3.6 1.4 1.9 1.8 1.0 0.6 0.5 1.3 -0.5 

 Unit labor costs ................ 1.8 4.1 1.6 -0.5 0.2 0.9 2.1 2.9 2.6 0.6 

 Nonfarm Business: 

 Productivity ...................... 2.9 2.8 2.5 4.1 3.7 2.8 1.8 1.0 1.4 2.8 

 Output ............................... 5.2 3.8 0.4 1.5 3.1 4.1 3.4 3.2 2.0 1.0 

 Hours ................................ 2.2 1.0 -2.0 -2.6 -0.6 1.3 1.6 2.2 0.5 -1.8 

 Hourly compensation........ 4.7 7.2 4.0 3.6 4.0 3.6 4.0 3.8 4.1 3.4 

 Real hourly compensation 

............................................ 

2.6 3.7 1.1 2.0 1.8 0.9 0.7 0.5 1.2 -0.4 

 Unit labor costs ................ 1.8 4.2 1.4 -0.5 0.3 0.9 2.2 2.8 2.7 0.5 

 Manufacturing: 

 Productivity ...................... 4.5 4.1 1.6 6.9 6.2 2.2 4.9 1.1 3.4 1.3 

 Output ............................... 3.8 2.7 -5.1 -0.7 1.0 1.7 3.7 1.8 1.6 -2.4 

 Hours ................................ -0.7 -1.3 -6.5 -7.1 -4.9 -0.5 -1.2 0.8 -1.7 -3.7 

 Hourly compensation........ 4.0 9.1 2.3 7.2 7.0 2.1 1.9 4.1 3.5 3.9 

 Real hourly compensation 

............................................ 

1.8 5.6 -0.5 5.5 4.7 -0.6 -1.4 0.8 0.7 0.1 

 Unit labor costs ................ -0.5 4.9 0.7 0.3 0.8 -0.2 -2.8 3.0 0.1 2.5 

In 2008, hourly compensation increased 3.3 percent and 3.4 percent in business and 

nonfarm business, respectively. Because consumer prices increased more, 3.8 percent, real 

hourly compensation fell slightly. The annual decline in this measure of purchasing power was 

the first since small declines occurred in three consecutive years—1993, 1994, and 1995. 

Unit labor costs rose just 0.6 percent and 0.5 percent in the business and nonfarm 

business sectors in 2008, as hourly compensation growth was largely offset by productivity 

growth. Unit labor costs had increased 2.7 percent per year on average from 2005 to 2007. 
6 

Manufacturing 

 In the manufacturing sector, labor productivity rose 1.3 percent in 2008 as output fell 2.4 

percent but hours fell faster, 3.7 percent (table B). Over the year there was little difference 

between the durable and nondurable manufacturing subsectors. Durable manufacturing output 

per hour increased 1.4 percent as output fell 2.5 percent and hours fell 3.9 percent, while in 

nondurable goods industries productivity increased 1.0 percent, output fell 2.4 percent, and hours 

fell 3.4 percent. 

 Hourly compensation of manufacturing workers increased 3.9 percent in 2008, consistent 

with the trend rate of 4.0 percent per year from 2000 to 2007. The gain in hourly compensation 

was offset by the 3.8 percent increase in consumer prices, and real hourly compensation edged 

up 0.1 percent. Unit labor costs in manufacturing increased 2.5 percent in 2008, as hourly 

compensation increased more than productivity. These costs had increased at a 0.3 percent 

average annual rate from 2000 to 2007. 

Revised Measures

Current and previous measures for the third quarter of 2008 for the business, nonfarm 

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

business sectors, productivity growth was revised up slightly in the third quarter because hours 

worked fell faster than reported Dec. 3. The upward revisions to productivity led to small 

downward revisions to unit labor costs. 

In the manufacturing sector, productivity fell 0.6 percentage points faster in the third 

quarter than previously reported, as a downward revision to output was partially offset by a 

downward revision to hours. As revised, manufacturing productivity decreased 3.3 percent, 

reflecting an 8.8 percent decrease in output and a 5.7 percent decrease in hours. Unit labor costs 

increased more in the third quarter than reported Dec. 3, reflecting both the downward revision 

to productivity and a small upward revision to hourly compensation. 

Table C. Previous and revised productivity and related measures 

Quarterly percent change at seasonally adjusted annual rates 

Sector 

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation 

Unit 

labor 

costs 

Third quarter 2008 

Business: 

 Previous ....................... 1.5 -1.7 -3.2 4.2 -2.4 2.6 

 Revised......................... 1.7 -1.8 -3.5 4.2 -2.3 2.5 

Nonfarm business: 

 Previous ....................... 1.3 -1.9 -3.1 4.1 -2.4 2.8 

 Revised......................... 1.5 -1.9 -3.4 4.2 -2.4 2.6 

Manufacturing: 

 Previous ....................... -2.7 -7.8 -5.3 4.7 -1.9 7.6 

 Revised......................... -3.3 -8.8 -5.7 4.9 -1.7 8.4 
7 

Revised Measures: Nonfinancial Corporations 

Revised third-quarter productivity and costs measures for nonfinancial corporations also 

were announced today, and reflect updated information on output, compensation and employee 

hours. In the third quarter of 2008, productivity grew faster than reported on Dec. 3, as a result 

of both an upward revision to output and a downward revision to hours worked. Unit labor costs 

were revised down as the upward revision to productivity was larger than the upward revision to 

hourly compensation (table D). 

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

Quarterly percent c ange at s asonally djusted nnual rates h e a a

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation 

Unit 

labor 

costs 

Unit 

profits 

Implicit 

price 

deflator

Third quarter 2008 

Previous 4.9 1.8 -3.0 5.0 -1.6 0.1 24.6 4.0 

Revised 5.5 2.1 -3.2 5.1 -1.5 -0.4 26.8 3.8 

Real output for nonfinancial corporations was revised beginning with data for the first 

quarter of 2005 in the national income and product accounts (NIPA) data released by the Bureau 

of Economic Analysis, U.S. Department of Commerce on December 23, 2008. As a result of the 

incorporation of these revisions, output and all measures relying on output for this sector, such as 

productivity and unit labor costs, were subject to revision back to the first quarter of 2005. 

Revised data for 2006 forward appear in table 6. The full historical measures can be found via 

the productivity and costs home page of the BLS website, http://www.bls.gov/lpc/#data. 

Next release date

 The next release of Productivity and Costs is scheduled for 8:30 A.M. EST, Thursday, 

March 5, 2009. Revised fourth-quarter and annual average measures for business, nonfarm 

business, and manufacturing will be released at that time. This release will incorporate the 

annual benchmark revision to the employment levels in the BLS establishment survey data that 

will be released February 6. All employment and hours series will incorporate new information 

on seasonal patterns. 
8 

TECHNICAL NOTES 

Labor Hours: Hours data for the labor productivity and cost measures include hours for all 

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

workers. The primary source of hours and employment data is the BLS Current Employment 

Statistics (CES) program, which provides monthly survey data on the number of jobs held by 

wage and salary workers in nonfarm establishments. The CES also provides average weekly 

paid hours of production and nonsupervisory workers in these establishments. Weekly paid 

hours are adjusted to hours at work using data from the National Compensation Survey (NCS). 

The BLS Hours at Work survey, conducted for this purpose, was used for earlier years. The 

Office of Productivity and Technology estimates average weekly hours at work for 

nonproduction and supervisory workers using information from the Current Population Survey 

(CPS), the CES, and the NCS. 

Data from the CPS are used for farm labor, nonfarm proprietors, and nonfarm unpaid 

family workers. Estimates of labor input for government enterprises are derived from the CPS, 

the CES, and the National Income and Product Accounts (NIPA) prepared by the Bureau of 

Economic Analysis (BEA) of the Department of Commerce. 

The CES measures jobs, counting a person who is employed by two or more 

establishments at each place of employment. In contrast, the CPS features measures of 

employment that count each person only once and classify each person according to his or her 

primary job; hours worked at all jobs by that person accrue to his or her primary job. However, 

the CPS also collects more detailed information on employment and hours worked at primary 

jobs and all other jobs, separately. The BLS productivity measures use the more detailed 

information on employment and hours to assign all hours worked to the correct industrial sector 

and avoid duplicating hours data from the CES. 

Output: Business sector output is a chain-type, current-weighted index constructed after 

excluding from gross domestic product (GDP) the following outputs: general government, 

nonprofit institutions, and private households (including owner-occupied housing). 

Corresponding exclusions also are made in labor inputs. Business output accounted for about 78 

percent of the value of GDP in 2000. Nonfarm business, which excludes farming, accounted for 

about 77 percent of GDP in 2000. 

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

constructed by deflating current-dollar industry value of production data from the U.S. Bureau of 

the Census with deflators from the BLS. These deflators are based on data from the BLS 

producer price program and other sources. The industry shipments are aggregated using annual 

weights, and intrasector transactions are removed. Quarterly manufacturing output measures are 

based on the index of industrial production prepared monthly by the Board of Governors of the 

Federal Reserve System, adjusted to be consistent with annual indexes of manufacturing sector 

output prepared by BLS. Durables include the following 3-digit NAICS industries: wood 

product manufacturing; nonmetallic mineral product manufacturing; primary metal 

manufacturing; fabricated metal product manufacturing; machinery manufacturing; computer 

and electronic product manufacturing; electrical equipment and appliance manufacturing; 

transportation equipment manufacturing; furniture and related product manufacturing; and 

miscellaneous manufacturing. Nondurables include: food manufacturing; beverage and tobacco 

product manufacturing; textile mills; textile product mills; apparel manufacturing; leather and 

allied product manufacturing; paper manufacturing; printing and related support activities; 

petroleum and coal products manufacturing; chemical manufacturing; and plastics and rubber 

products manufacturing. 

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

basis of the costs incurred and the incomes earned from production. The output measure 

excludes the following outputs from GDP: general government; nonprofit institutions; private 

households; unincorporated business; and those corporations classified as offices of bank 
9 

holding companies, offices of other holding companies, or offices in the finance and insurance 

sector. Nonfinancial corporations accounted for about 54 percent of the value of GDP in 2000. 

Productivity: These productivity measures describe the relationship between real output and the 

labor time involved in its production. They show the changes from period to period in the 

amount of goods and services produced per hour. Although these measures relate output to hours 

at work of all persons engaged in a sector, they do not measure the specific contribution of labor, 

capital, or any other factor of production. Rather, they reflect the joint effects of many 

influences, including changes in technology; capital investment; level of output; utilization of 

capacity, energy, and materials; the organization of production; managerial skill; and the 

characteristics and effort of the work force. 

Labor Compensation: Estimates of labor compensation by major sector, required for measures 

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

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

nonprofit institutions and private households are subtracted from compensation of domestic 

employees to derive employee compensation for the business sector. The labor compensation of 

proprietors cannot be explicitly identified and must be estimated. This is done by assuming that 

proprietors have the same hourly compensation as employees in the same sector. The quarterly 

labor productivity and cost measures do not contain estimates of compensation for unpaid family 

workers. 

Unit Labor Costs: The measures of unit labor costs in this release describe the relationship 

between compensation per hour and productivity, or real output per hour, and can be used as an 

indicator of inflationary pressure on producers. Increases in hourly compensation increase unit 

labor costs; labor productivity increases offset compensation increases and lower unit labor 

costs. 

Presentation of the data: The quarterly data in this release are presented in three ways; as 

index number series where 1992=100, as percent changes from the corresponding quarter of the 

previous year, and as percent changes from the previous quarter presented at a compound annual 

rate. Annual data are presented both as index number series and percent changes from the 

previous year. 

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

release are rounded to one decimal place. All percent changes in this release and on the BLS 

web site are calculated using index numbers to three decimal places. These index numbers are 

available at the BLS web site, http://www.bls.gov/data/home.htm, or by contacting the BLS 

Division of Major Sector Productivity. (Telephone 202-691-5606 or email 

DPRWEB@BLS.GOV) 

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

request. Voice phone: 202-691-5606; Federal Relay Service number: 1-800-877-8339. 
10 

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

and prices, seasonally adjusted 

 Real 

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

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

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

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

 Indexes 1992=100 

2006 I 136.1 162.8 119.6 168.0 120.7 123.5 133.4 127.2 

 II 136.6 164.0 120.1 168.1 119.7 123.1 136.2 128.0 

 III 135.9 164.1 120.8 169.0 119.1 124.3 136.2 128.8 

 IV 135.9 164.8 121.2 172.6 122.1 127.0 133.4 129.4 

 ANNUAL 136.1 163.9 120.4 169.5 120.4 124.5 134.8 128.3 

2007 I 135.9 164.5 121.0 174.7 122.4 128.5 134.3 130.7 

 II 137.6 166.8 121.2 175.5 121.6 127.5 137.4 131.2 

 III 139.7 169.0 121.0 177.0 121.9 126.7 139.7 131.6 

 IV 139.7 168.8 120.8 178.9 121.7 128.1 139.2 132.2 

 ANNUAL 138.2 167.3 121.0 176.5 r121.9 127.7 137.7 131.4 

2008 I 140.5 169.1 120.3 180.6 121.5 128.5 140.2 132.9 

 II 141.8 170.2 120.0 181.1 120.4 127.7 142.3 133.2 

 III r142.4 r169.4 r119.0 r183.0 r119.7 r128.5 r144.7 r134.6 

 IV 143.5 167.2 116.5 185.1 124.0 129.0 142.9 134.2 

 ANNUAL 142.0 169.0 119.0 182.4 121.3 128.4 142.5 133.7 

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

 Percent change from previous quarter at annual rate(5) 

2006 I 2.6 5.6 3.0 5.5 3.6 2.8 3.1 3.0 

 II 1.4 2.9 1.5 0.2 -3.3 -1.2 8.6 2.6 

 III -2.0 0.3 2.4 2.0 -1.9 4.1 -0.1 2.4 

 IV 0.2 1.7 1.5 9.0 10.6 8.8 -8.0 1.9 

 ANNUAL 0.9 3.0 2.1 3.8 0.5 2.9 3.3 3.0 

2007 I -0.1 -0.7 -0.6 4.8 1.1 4.8 2.8 4.0 

 II 5.0 5.6 0.6 1.9 -2.6 -2.9 9.6 1.7 

 III 6.2 5.5 -0.7 3.6 0.8 -2.5 6.9 1.1 

 IV 0.1 -0.6 -0.7 4.4 -0.6 4.3 -1.6 2.0 

 ANNUAL 1.5 2.0 0.5 4.2 1.3 2.6 2.1 2.4 

2008 I 2.3 0.7 -1.6 3.6 -0.6 1.3 3.1 2.0 

 II 3.7 2.6 -1.0 1.2 -3.7 -2.4 6.1 0.9 

 III r1.7 r-1.8 r-3.5 4.2 r-2.3 r2.5 r7.0 r4.2 

 IV 3.1 -5.2 -8.1 4.7 15.3 1.5 -5.0 -1.1 

 ANNUAL 2.7 1.0 -1.7 3.3 -0.5 0.6 3.5 1.7 

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

 Percent change from corresponding quarter of previous year 

2006 I 1.3 3.6 2.3 4.3 0.5 2.9 3.9 3.3 

 II 1.7 3.5 1.8 4.0 0.1 2.3 5.2 3.4 

 III 0.2 2.4 2.2 2.9 -0.4 2.7 3.5 3.0 

 IV 0.5 2.6 2.1 4.1 2.1 3.6 0.7 2.5 

 ANNUAL 0.9 3.0 2.1 3.8 0.5 2.9 3.3 3.0 

2007 I -0.1 1.0 1.2 3.9 1.5 4.1 0.7 2.7 

 II 0.7 1.7 1.0 4.4 1.7 3.6 0.9 2.5 

 III 2.8 3.0 0.2 4.8 2.4 1.9 2.6 2.2 

 IV 2.8 2.4 -0.3 3.7 -0.3 0.9 4.3 2.2 

 ANNUAL 1.5 2.0 0.5 4.2 1.3 2.6 2.1 2.4 

2008 I 3.4 2.8 -0.6 3.4 -0.7 0.0 4.4 1.7 

 II 3.0 2.0 -1.0 3.2 -1.0 0.2 3.6 1.5 

 III 1.9 0.2 r-1.7 r3.4 -1.8 1.4 r3.6 2.3 

 IV 2.7 -1.0 -3.6 3.4 1.9 0.7 2.7 1.5 

 ANNUAL 2.7 1.0 -1.7 3.3 -0.5 0.6 3.5 1.7 

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

See footnotes following Table 6. February 5, 2009 

r=revised Source: Bureau of Labor Statistics 
11 

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

and prices, seasonally adjusted 

 Real 

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

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

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

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

 Indexes 1992=100 

2006 I 135.1 163.2 120.8 166.8 119.8 123.5 135.5 127.9 

 II 135.7 164.3 121.1 167.1 118.9 123.2 138.6 128.8 

 III 135.0 164.4 121.8 167.9 118.3 124.4 138.3 129.5 

 IV 135.0 165.0 122.2 171.7 121.4 127.1 134.8 130.0 

 ANNUAL 135.2 164.2 121.5 168.4 119.6 124.6 136.8 129.1 

2007 I 135.0 164.7 122.0 173.7 121.8 128.7 135.2 131.1 

 II 136.4 167.0 122.4 174.1 120.7 127.7 138.2 131.5 

 III 138.3 169.2 122.3 175.5 120.8 126.9 140.3 131.8 

 IV 138.6 168.9 121.9 177.8 120.9 128.3 139.8 132.5 

 ANNUAL 137.1 167.5 122.2 175.3 r121.1 127.9 138.4 131.7 

2008 I 139.5 169.3 121.4 179.5 120.8 128.7 141.0 133.2 

 II 140.8 170.5 121.1 179.9 119.6 127.8 143.3 133.5 

 III r141.3 r169.7 r120.1 r181.8 r118.9 r128.6 r146.0 r135.0 

 IV 142.4 167.3 117.5 184.0 123.3 129.2 144.6 134.9 

 ANNUAL 141.0 169.2 120.0 181.3 120.6 128.6 143.7 134.2 

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

 Percent change from previous quarter at annual rate(5) 

2006 I 2.5 6.0 3.3 5.2 3.3 2.6 3.9 3.1 

 II 1.8 2.9 1.1 0.7 -2.8 -1.1 9.4 2.9 

 III -2.1 0.3 2.4 1.9 -2.0 4.1 -0.9 2.1 

 IV 0.2 1.4 1.2 9.3 11.0 9.1 -9.5 1.5 

 ANNUAL 1.0 3.2 2.2 3.8 0.5 2.8 3.6 3.1 

2007 I 0.0 -0.9 -0.8 4.9 1.2 4.9 0.9 3.4 

 II 4.1 5.8 1.6 0.8 -3.6 -3.2 9.4 1.5 

 III 5.8 5.5 -0.3 3.3 0.5 -2.4 6.3 0.9 

 IV 0.8 -0.7 -1.6 5.3 0.3 4.5 -1.5 2.1 

 ANNUAL 1.4 2.0 0.5 4.1 r1.2 2.7 1.2 2.1 

2008 I 2.6 0.9 -1.7 3.8 -0.4 1.2 3.6 2.1 

 II 3.6 2.8 -0.8 0.9 -3.9 -2.6 6.6 0.9 

 III r1.5 -1.9 r-3.4 r4.2 -2.4 r2.6 r7.8 r4.7 

 IV 3.2 -5.5 -8.4 5.0 15.6 1.8 -3.8 -0.5 

 ANNUAL 2.8 1.0 -1.8 3.4 -0.4 0.5 3.9 1.8 

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

 Percent change from corresponding quarter of previous year 

2006 I 1.3 3.7 2.4 4.2 0.5 2.9 4.3 3.4 

 II 1.7 3.7 2.0 3.9 0.0 2.2 5.9 3.6 

 III 0.3 2.6 2.3 2.9 -0.5 2.6 3.8 3.1 

 IV 0.6 2.6 2.0 4.3 2.2 3.6 0.5 2.4 

 ANNUAL 1.0 3.2 2.2 3.8 0.5 2.8 3.6 3.1 

2007 I 0.0 0.9 1.0 4.2 1.7 4.2 -0.2 2.5 

 II 0.5 1.6 1.1 4.2 1.5 3.7 -0.2 2.1 

 III 2.5 2.9 0.4 4.5 2.1 2.0 1.5 1.8 

 IV 2.7 2.4 -0.3 3.6 -0.4 0.9 3.7 2.0 

 ANNUAL 1.4 2.0 0.5 4.1 r1.2 2.7 1.2 2.1 

2008 I 3.3 2.8 -0.5 3.3 -0.8 0.0 4.3 1.6 

 II 3.2 2.1 -1.1 3.3 -0.9 0.1 3.7 1.5 

 III r2.2 0.3 -1.8 r3.6 -1.6 1.4 r4.0 r2.4 

 IV 2.7 -1.0 -3.6 3.5 1.9 0.7 3.4 1.8 

 ANNUAL 2.8 1.0 -1.8 3.4 -0.4 0.5 3.9 1.8 

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

See footnotes following Table 6. February 5, 2009 

r=revised Source: Bureau of Labor Statistics 
12 

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

seasonally adjusted 

 Real 

 Year Output per Hours Compensa- compensa- Unit 

 and hour of of all tion per tion per labor 

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

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

 Indexes 1992=100 

2006 I 172.6 147.2 85.3 170.9 122.7 99.0 

 II 172.7 147.4 85.4 169.5 120.7 98.2 

 III 174.5 148.0 84.8 170.3 120.0 97.6 

 IV 175.4 147.4 84.0 174.6 123.5 99.5 

 ANNUAL 173.8 147.5 84.9 171.3 121.7 98.6 

2007 I 177.0 147.8 83.5 176.9 124.0 100.0 

 II 178.7 149.6 83.7 176.4 122.3 98.7 

 III 180.6 151.2 83.7 176.4 121.4 97.6 

 IV 182.5 151.0 82.8 179.7 122.2 98.5 

 ANNUAL 179.7 149.9 83.4 177.3 r122.5 98.7 

2008 I 184.0 150.7 81.9 181.4 122.1 98.6 

 II r182.9 r149.3 81.6 182.4 121.3 r99.7 

 III r181.4 r145.9 r80.4 r184.6 r120.7 r101.7 

 IV 180.0 139.4 77.4 189.0 126.6 105.0 

 ANNUAL 182.1 146.3 80.3 184.2 122.6 101.2 

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

 Percent change from previous quarter at annual rate(5) 

2006 I -0.6 1.8 2.4 14.3 12.3 15.0 

 II 0.2 0.6 0.4 -3.1 -6.5 -3.3 

 III 4.3 1.6 -2.5 1.8 -2.1 -2.3 

 IV 2.2 -1.7 -3.8 10.4 12.1 8.0 

 ANNUAL 1.1 1.8 0.8 4.1 0.8 3.0 

2007 I 3.6 1.2 -2.3 5.5 1.8 1.8 

 II 3.8 4.9 1.0 -1.1 -5.5 -4.8 

 III 4.5 4.3 -0.2 -0.1 -2.8 -4.4 

 IV 4.2 -0.4 -4.4 7.8 2.7 3.4 

 ANNUAL 3.4 1.6 -1.7 3.5 0.7 0.1 

2008 I 3.3 -0.8 -4.0 3.8 -0.5 0.5 

 II r-2.3 r-3.8 -1.5 2.2 -2.7 r4.6 

 III r-3.3 r-8.8 r-5.7 r4.9 r-1.7 r8.4 

 IV -3.0 -16.7 -14.1 9.8 20.9 13.3 

 ANNUAL 1.3 -2.4 -3.7 3.9 0.1 2.5 

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

 Percent change from corresponding quarter of previous year 

2006 I 1.5 2.4 0.9 5.4 1.6 3.8 

 II 0.4 2.1 1.7 3.3 -0.6 2.9 

 III 0.9 2.3 1.4 2.3 -1.0 1.4 

 IV 1.5 0.6 -0.9 5.6 3.6 4.1 

 ANNUAL 1.1 1.8 0.8 4.1 0.8 3.0 

2007 I 2.6 0.4 -2.1 3.5 1.1 0.9 

 II 3.5 1.5 -1.9 4.1 1.4 0.6 

 III 3.5 2.1 -1.3 3.6 1.2 0.0 

 IV 4.0 2.5 -1.5 2.9 -1.0 -1.1 

 ANNUAL 3.4 1.6 -1.7 3.5 0.7 0.1 

2008 I 4.0 2.0 -1.9 2.5 -1.6 -1.4 

 II 2.4 -0.2 -2.5 3.4 -0.8 r1.0 

 III r0.4 r-3.5 r-3.9 r4.7 -0.6 r4.2 

 IV -1.4 -7.7 -6.5 5.1 3.6 6.6 

 ANNUAL 1.3 -2.4 -3.7 3.9 0.1 2.5 

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

See footnotes following Table 6. February 5, 2009 

r=revised Source: Bureau of Labor Statistics 
13 

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

seasonally adjusted 

 Real 

 Year Output per Hours Compensa- compensa- Unit 

 and hour of of all tion per tion per labor 

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

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

 Indexes 1992=100 

2006 I 198.8 179.6 90.3 166.0 119.2 83.5 

 II 198.9 180.5 90.7 164.6 117.1 82.7 

 III 201.7 181.1 89.8 165.3 116.5 81.9 

 IV 202.4 180.1 89.0 170.2 120.4 84.1 

 ANNUAL 200.4 180.3 90.0 166.5 118.3 83.1 

2007 I 204.4 180.3 88.2 173.0 121.3 84.7 

 II 207.9 183.9 88.4 172.5 119.6 83.0 

 III 210.9 186.9 88.6 172.2 118.6 81.7 

 IV 214.3 187.0 87.3 175.5 119.4 81.9 

 ANNUAL 209.4 184.5 88.1 173.3 r119.7 82.8 

2008 I 215.5 186.9 86.7 176.6 118.9 82.0 

 II r213.1 r184.1 86.4 178.1 118.4 r83.6 

 III r214.1 r180.9 r84.5 r180.9 r118.3 r84.5 

 IV 206.6 167.7 81.2 185.3 124.1 89.7 

 ANNUAL 212.4 179.9 84.7 180.1 119.8 84.8 

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

 Percent change from previous quarter at annual rate(5) 

2006 I -1.8 0.4 2.3 13.7 11.7 15.9 

 II 0.3 2.1 1.8 -3.3 -6.6 -3.6 

 III 5.7 1.2 -4.3 1.6 -2.3 -3.9 

 IV 1.4 -2.1 -3.4 12.6 14.4 11.1 

 ANNUAL 2.2 3.3 1.1 3.9 0.6 1.7 

2007 I 3.9 0.4 -3.4 6.7 3.0 2.7 

 II 7.1 8.2 1.0 -1.2 -5.5 -7.7 

 III 6.0 6.8 0.8 -0.7 -3.3 -6.2 

 IV 6.6 0.3 -6.0 7.9 2.8 1.2 

 ANNUAL 4.5 2.3 -2.0 4.1 r1.2 -0.3 

2008 I 2.1 -0.4 -2.5 2.5 -1.7 0.4 

 II r-4.4 r-5.7 -1.4 3.5 -1.5 r8.2 

 III r2.0 r-6.9 r-8.8 r6.3 r-0.4 r4.1 

 IV -13.4 -26.1 -14.7 10.1 21.2 27.1 

 ANNUAL 1.4 -2.5 -3.9 3.9 0.1 2.5 

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

 Percent change from corresponding quarter of previous year 

2006 I 3.2 4.8 1.6 4.9 1.1 1.6 

 II 2.0 4.6 2.5 3.1 -0.8 1.1 

 III 2.2 3.6 1.4 1.9 -1.5 -0.4 

 IV 1.4 0.4 -1.0 5.9 3.9 4.5 

 ANNUAL 2.2 3.3 1.1 3.9 0.6 1.7 

2007 I 2.8 0.4 -2.4 4.3 1.8 1.4 

 II 4.5 1.8 -2.5 4.8 2.1 0.3 

 III 4.6 3.2 -1.3 4.2 1.8 -0.3 

 IV 5.9 3.9 -1.9 3.1 -0.8 -2.6 

 ANNUAL 4.5 2.3 -2.0 4.1 r1.2 -0.3 

2008 I 5.4 3.7 -1.7 2.1 -2.0 -3.2 

 II 2.5 r0.1 -2.3 3.3 -1.0 r0.8 

 III r1.5 r-3.2 r-4.7 5.0 r-0.2 r3.4 

 IV -3.6 -10.4 -7.0 5.5 4.0 9.5 

 ANNUAL 1.4 -2.5 -3.9 3.9 0.1 2.5 

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

See footnotes following Table 6. February 5, 2009 

r=revised Source: Bureau of Labor Statistics 
14 

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

seasonally adjusted 

 Real 

 Year Output per Hours Compensa- compensa- Unit 

 and hour of of all tion per tion per labor 

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

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

 Indexes 1992=100 

2006 I 148.0 115.0 77.7 178.0 127.8 120.2 

 II 148.4 114.8 77.3 176.6 125.7 119.0 

 III 149.0 115.4 77.4 177.8 125.3 119.3 

 IV 150.3 115.1 76.6 180.4 127.6 120.0 

 ANNUAL 148.9 115.1 77.2 178.2 126.6 119.6 

2007 I 151.2 115.6 76.5 181.9 127.5 120.3 

 II 151.4 116.0 76.6 181.4 125.8 119.9 

 III 152.7 116.4 76.3 181.8 125.2 119.1 

 IV 152.9 116.1 75.9 185.3 126.0 121.2 

 ANNUAL 152.0 116.0 76.3 182.6 r126.1 120.1 

2008 I 155.0 115.7 74.6 188.0 126.5 121.3 

 II r155.0 r115.2 74.3 187.9 124.9 r121.2 

 III r150.8 r112.1 r74.3 r189.3 r123.8 r125.5 

 IV 153.6 110.2 71.8 193.7 129.8 126.1 

 ANNUAL 153.6 113.3 73.8 189.7 126.2 123.5 

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

 Percent change from previous quarter at annual rate(5) 

2006 I 1.0 3.6 2.6 15.5 13.4 14.4 

 II 1.1 -0.9 -1.9 -3.1 -6.5 -4.1 

 III 1.5 2.2 0.6 2.6 -1.4 1.1 

 IV 3.5 -1.1 -4.4 6.1 7.7 2.5 

 ANNUAL 0.2 0.3 0.1 4.5 1.1 4.3 

2007 I 2.5 2.0 -0.5 3.3 -0.3 0.8 

 II 0.4 1.3 0.9 -1.0 -5.3 -1.4 

 III 3.5 1.6 -1.9 0.7 -2.0 -2.7 

 IV 0.6 -1.1 -1.7 7.9 2.8 7.3 

 ANNUAL 2.1 0.9 -1.2 2.5 r-0.4 0.4 

2008 I 5.8 -1.3 -6.7 6.0 1.7 0.3 

 II 0.0 -1.7 -1.7 -0.3 -5.0 -0.3 

 III r-10.5 r-10.6 r0.0 r3.0 r-3.5 r15.1 

 IV 7.6 -6.5 -13.1 9.6 20.6 1.8 

 ANNUAL 1.0 -2.4 -3.4 3.9 0.1 2.8 

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

 Percent change from corresponding quarter of previous year 

2006 I 0.2 -0.1 -0.3 6.2 2.4 6.0 

 II -0.7 -0.6 0.1 3.5 -0.4 4.2 

 III -0.4 1.0 1.4 3.1 -0.2 3.6 

 IV 1.8 0.9 -0.8 5.1 3.0 3.2 

 ANNUAL 0.2 0.3 0.1 4.5 1.1 4.3 

2007 I 2.1 0.5 -1.6 2.2 -0.2 0.0 

 II 2.0 1.1 -0.9 2.7 0.1 0.7 

 III 2.5 0.9 -1.5 2.3 -0.1 -0.2 

 IV 1.7 0.9 -0.8 2.7 -1.2 1.0 

 ANNUAL 2.1 0.9 -1.2 2.5 r-0.4 0.4 

2008 I 2.5 0.1 -2.4 3.4 -0.8 0.8 

 II 2.4 -0.7 -3.0 3.6 -0.7 1.1 

 III -1.2 r-3.8 r-2.6 r4.1 r-1.1 r5.4 

 IV 0.4 -5.1 -5.5 4.5 3.0 4.1 

 ANNUAL 1.0 -2.4 -3.4 3.9 0.1 2.8 

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

See footnotes following Table 6. February 5, 2009 

r=revised Source: Bureau of Labor Statistics 
15 

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

and prices, seasonally adjusted 

 Output Hourly Real Unit Total Unit Implicit 

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

 and employee Employee sation compen- labor labor costs fits deflator 

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

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

 Indexes 1992=100 

2006 I r146.3 r176.1 120.4 164.5 118.1 r112.5 r113.0 r112.6 r182.6 r118.8 

 II r145.8 r176.2 120.9 164.5 117.0 r112.8 r114.6 r113.3 r183.4 r119.5 

 III r146.7 r178.1 121.5 165.1 116.3 r112.5 r114.5 r113.1 r193.4 r120.3 

 IV r145.6 r177.3 121.8 167.8 118.7 r115.3 r116.5 r115.6 r174.4 r120.8 

 ANNUAL r146.1 r176.9 121.1 165.5 117.5 r113.3 r114.6 r113.6 r183.5 r119.9 

2007 I r145.7 r177.2 121.7 170.3 119.4 r116.9 r117.6 r117.1 r172.4 r122.1 

 II r146.9 r179.1 121.9 171.3 118.7 r116.6 r117.9 r116.9 r173.1 r122.0 

 III r147.6 r180.2 122.1 172.5 118.7 r116.9 r118.2 r117.2 r167.4 r121.7 

 IV r148.4 r181.2 122.1 175.0 119.0 r117.9 r119.3 r118.3 r156.4 r121.7 

 ANNUAL r147.1 r179.4 122.0 172.3 r119.0 r117.1 r118.3 r117.4 r167.3 r121.9 

2008 I r148.3 r180.6 121.8 176.2 118.6 r118.9 r119.4 r119.0 r150.8 r121.8 

 II r151.1 r183.2 121.3 177.2 117.8 r117.3 r119.8 r118.0 r147.8 r120.6 

 III r153.1 r184.2 r120.3 r179.5 r117.4 r117.2 r121.4 r118.3 r156.8 r121.8 

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

 Percent change from previous quarter at annual rate(5) 

2006 I r3.8 r6.3 2.4 8.3 6.3 r4.3 r0.1 r3.1 r12.8 r4.4 

 II r-1.2 r0.4 1.7 0.0 -3.5 r1.2 r5.7 r2.4 r1.8 r2.3 

 III r2.4 r4.4 1.9 1.5 -2.5 r-0.9 r-0.2 r-0.7 r23.7 r2.4 

 IV r-2.9 r-1.9 1.0 6.9 8.5 r10.0 r7.2 r9.2 r-34.0 r2.0 

 ANNUAL r1.8 r4.1 2.2 3.6 0.3 r1.8 r1.7 r1.8 r12.6 r3.1 

2007 I r0.2 r-0.2 -0.3 6.1 2.4 r5.9 r3.8 r5.4 r-4.5 r4.0 

 II 3.4 r4.2 0.8 2.2 -2.3 r-1.1 r0.9 r-0.6 1.7 r-0.3 

 III r1.9 r2.7 0.7 2.8 0.1 r0.9 r1.2 1.0 r-12.6 -0.8 

 IV r2.2 r2.1 0.0 5.9 0.9 r3.7 r3.7 r3.7 r-23.8 r0.0 

 ANNUAL r0.7 r1.4 0.7 4.1 r1.2 r3.4 r3.2 r3.3 r-8.8 r1.7 

2008 I -0.2 -1.4 -1.1 2.9 -1.3 3.2 0.3 2.4 -13.6 0.5 

 II 7.7 6.0 -1.6 2.3 -2.6 -5.0 1.2 -3.4 -7.7 -3.8 

 III r5.5 r2.1 r-3.2 r5.1 r-1.5 r-0.4 r5.5 r1.2 r26.8 r3.8 

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

 Percent change from corresponding quarter of previous year 

2006 I r3.0 r5.7 2.6 4.1 0.4 r1.1 r1.6 r1.2 r17.3 r3.2 

 II r1.3 r3.6 2.3 3.7 -0.2 r2.4 r3.0 r2.6 r10.1 r3.5 

 III r2.5 r4.8 2.2 2.6 -0.7 r0.1 r-0.9 r-0.2 r27.3 r3.0 

 IV r0.5 r2.2 1.8 4.1 2.1 r3.6 r3.1 r3.5 r-1.6 r2.8 

 ANNUAL r1.8 r4.1 2.2 3.6 0.3 r1.8 r1.7 r1.8 r12.6 r3.1 

2007 I r-0.4 r0.7 1.1 3.6 1.1 r4.0 r4.1 r4.0 r-5.6 r2.7 

 II r0.7 r1.6 0.8 4.1 1.4 r3.4 r2.9 r3.2 r-5.6 r2.0 

 III r0.6 r1.2 0.6 4.5 2.1 r3.8 r3.2 r3.7 r-13.5 r1.2 

 IV 1.9 2.2 0.3 4.3 0.3 2.3 2.4 2.3 -10.3 0.7 

 ANNUAL r0.7 r1.4 0.7 4.1 r1.2 r3.4 r3.2 r3.3 r-8.8 r1.7 

2008 I r1.8 r1.9 0.1 3.5 -0.7 r1.6 r1.5 r1.6 -12.5 r-0.2 

 II 2.8 2.3 -0.5 3.5 -0.7 r0.6 r1.6 r0.9 -14.6 r-1.1 

 III r3.7 r2.2 r-1.5 r4.1 r-1.1 r0.3 r2.7 r0.9 r-6.3 r0.1 

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

See footnotes following Table 6. February 5, 2009 

r=revised Source: Bureau of Labor Statistics 
16 

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

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

and the Federal Reserve Board. Compensation and hours data are from the Bureau of Labor 

Statistics and the Bureau of Economic Analysis. 

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

information becomes available. The measures are first published within 40 days of the close of 

the reference period; revisions appear 30 days later, and second revisions after an additional 60 

days. In the business sector, the third publication (second revision) of a quarterly index of 

output per hour of all persons has differed from the initial value by between –1.5 and +1.3 index 

points approximately 95 percent of the time. This interval is based on the performance of this 

measure between the fourth quarter of 1995 and the third quarter of 2008. 

Footnotes, Tables 1-6

(1) Wages and salaries of employees plus employers' contributions for social insurance and 

private benefit plans. Except for nonfinancial corporations, where there are no selfemployed, 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 1978-2007 is based on the Consumer Price Index research 

series (CPI-U-RS). 

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

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

transfer payments, rental income of persons, and the current surplus of government 

enterprises. 

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

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

numbers to three decimal places. Indexes published in the news release are rounded to 

one decimal place for convenience. Annual changes: Percent change is calculated using 

annual average indexes to three decimal places. 

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

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

payments. 

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

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

consumption adjustments.