For release 10:00 a.m. (EDT) Thursday, October 13, 2011 USDL-11-1469

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, 2010

Productivity growth in manufacturing increased in 2010 in all countries covered, the U.S. Bureau of Labor 

Statistics reported today. In the majority of countries labor productivity (output per hour) rose by more than 5 

percent (see chart 1). In the previous year, productivity fell in 12 of 19 countries. The productivity increases in 

2010 were driven by large gains in output coupled with modest changes in hours (see chart 2). Output, after 

having fallen in all countries in 2009, rose in all countries in 2010. 

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

technical notes.) 

 

-10 -5 0 5 10 15 20 25 30 35

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

Chart 1. Percent changes in manufacturing 

output per hour, 2009–2010

-10 -5 0 5 10 15 20 25 30 35

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, 2009–2010
- 2 - 

The 2010 growth in manufacturing labor productivity represents a reversal of the previous year, where 

productivity fell in 12 of the 19 countries. In 2010, productivity increased in all countries covered, and six 

countries experienced productivity growth over 10 percent (see chart 3). 

. 

-20 -10 0 10 20 30 40

United Kingdom

Taiwan

Sweden

Spain

Singapore

Norway

Netherlands

Korea, Republic of

Japan

Italy

Germany

France

Finland

Denmark

Czech Republic

Canada

Belgium

Australia

United States

2009-2010

2008-2009

Percent change

Chart 3. Percent changes in manufacturing output per hour

Get More Information

Analyze trends with interactive dashboard. 

The Excel version of the data tables includes an interactive dashboard that displays charts from a custom 

selection of variables, countries, and time periods at www.bls.gov/ilc/#productivity. 

Find additional data. 

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

at www.bls.gov/ilc/#productivity. 

Send us your inquiries or feedback. 

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- 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 

declined in 2010 in all countries covered; Singapore, Sweden, and Japan recorded the largest drops (see chart 

4). Unit labor costs in U.S. dollars showed even steeper declines than the national currency valuations for most 

European countries, due to the relative strength of the U.S. dollar. In 2010 unit labor costs in U.S. dollars 

increased in four countries. 

In 2010, U.S. manufacturing labor cost competitiveness declined relative to 13 countries because unit labor 

costs on a U.S. dollar basis decreased more in those countries than in the United States. However, U.S. labor 

cost competitiveness improved relative to the other 5 countries. The United States improved its competiveness 

the most against Australia due to the large appreciation of the Australian dollar against the U.S. dollar, which 

pushed Australian unit labor costs up more than 10 percent on a U.S. dollar basis. 

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

United Kingdom

Taiwan

Sweden

Spain

Singapore

Norway

Netherlands

Korea, Republic of

Japan

Italy

Germany

France

Finland

Denmark

Czech Republic

Canada

Belgium

Australia

United States

National currency basis

U.S. dollar basis

Percent change

Chart 4. Percent changes in manufacturing unit labor costs, 2009–2010 
- 4 - 

Table 1. Output per hour, output, and hours

Manufacturing, 19 countries, 1979–2010

Average annual compound rates of change

Country Indicator 1979-2010 1979–1990 1990–2000 2000–2007 2007-2010 2008-2009 2009-2010

United States Output per hour 4.1 3.0 4.3 6.0 3.3 5.0 5.8

 Output 2.5 2.3 4.2 2.8 -2.8 -8.6 5.8

 Hours -1.5 -0.6 -0.1 -3.1 -5.8 -13.0 0.0

Australia Output per hour 2.0 2.1 1.9 2.4 1.0 4.4 1.6

 Output 1.4 1.6 1.5 1.6 0.3 -2.3 4.3

 Hours -0.5 -0.5 -0.4 -0.8 -0.7 -6.5 2.7

Belgium Output per hour 3.0 4.2 2.8 1.8 1.8 1.9 3.3

 Output 1.4 2.6 1.5 0.7 -1.9 -8.3 3.9

 Hours -1.5 -1.6 -1.2 -1.1 -3.6 -10.0 0.6

Canada Output per hour 2.2 2.1 3.6 0.9 0.8 0.9 4.3

 Output 1.4 1.9 4.2 -0.6 -4.2 -11.3 5.6

 Hours -0.7 -0.2 0.5 -1.5 -5.0 -12.1 1.3

Czech Republic Output per hour NA NA NA 7.4 5.1 -3.3 12.9

 Output NA NA NA 7.4 1.7 -11.9 10.8

 Hours NA NA NA 0.0 -3.2 -8.8 -1.9

Denmark Output per hour 2.5 2.2 2.3 3.0 3.5 -1.4 9.6

 Output 1.0 1.3 1.9 0.6 -2.3 -12.1 2.4

 Hours -1.5 -1.0 -0.4 -2.4 -5.5 -10.9 -6.5

Finland Output per hour 5.3 5.0 6.5 7.0 -1.0 -14.0 16.4

 Output 3.7 3.4 5.5 6.2 -6.5 -24.8 12.8

 Hours -1.5 -1.5 -0.9 -0.8 -5.5 -12.6 -3.2

France Output per hour 3.2 3.2 3.9 3.3 0.7 -2.0 7.9

 Output 0.9 0.9 1.9 1.2 -3.0 -8.1 3.5

 Hours -2.3 -2.3 -1.9 -2.1 -3.8 -6.3 -4.0

Germany Output per hour 2.4 2.1 3.3 3.7 -2.5 -9.2 6.9

 Output 0.7 1.2 0.6 2.4 -4.4 -18.1 11.3

 Hours -1.7 -0.9 -2.6 -1.3 -1.9 -9.8 4.1

Italy Output per hour 2.0 3.4 2.6 0.3 -0.9 -6.1 7.0

 Output 0.9 2.6 1.4 0.3 -5.8 -16.0 4.6

 Hours -1.1 -0.8 -1.2 -0.1 -4.9 -10.6 -2.3

Japan Output per hour 3.5 3.8 3.4 3.8 2.2 -9.0 13.9

 Output 2.2 4.7 0.8 2.3 -2.3 -19.7 16.7

 Hours -1.2 0.9 -2.4 -1.4 -4.4 -11.8 2.4

Korea, Republic of Output per hour NA NA 10.5 8.1 3.4 1.2 8.6

 Output 8.6 10.8 8.4 6.8 5.1 -1.5 14.8

 Hours NA NA -1.9 -1.1 1.7 -2.7 5.7

Netherlands Output per hour 3.1 3.2 3.4 3.8 0.6 -4.7 9.1

 Output 2.0 2.4 2.7 2.0 -1.2 -8.6 7.3

 Hours -1.1 -0.8 -0.7 -1.7 -1.7 -4.1 -1.7

Norway Output per hour 1.8 1.9 0.7 3.0 2.1 0.8 4.7

 Output 0.7 -0.5 1.0 2.6 -0.5 -5.8 1.9

 Hours -1.1 -2.3 0.3 -0.3 -2.6 -6.5 -2.6

Singapore Output per hour 4.8 4.0 7.2 2.0 6.3 -0.3 32.7

 Output 6.8 7.3 7.4 5.5 6.0 -4.2 29.7

 Hours 1.9 3.2 0.2 3.5 -0.3 -3.9 -2.3

Spain Output per hour 2.3 3.3 2.0 1.9 0.8 -0.8 4.7

 Output 1.4 2.1 2.8 1.2 -5.4 -13.6 0.9

 Hours -0.9 -1.2 0.8 -0.6 -6.1 -12.9 -3.7

Sweden Output per hour 4.2 2.1 6.4 6.5 -0.3 -7.3 13.4

 Output 3.2 1.7 5.7 5.0 -3.5 -18.0 15.6

 Hours -1.0 -0.4 -0.6 -1.5 -3.2 -11.5 2.0

Taiwan Output per hour 6.2 6.3 5.0 7.6 7.0 4.8 15.2

 Output 6.6 7.5 5.0 7.2 7.0 -4.4 26.7

 Hours 0.3 1.2 -0.1 -0.4 -0.1 -8.7 10.0

United Kingdom Output per hour 3.3 4.0 2.9 4.2 0.2 -3.7 4.2

 Output 0.3 0.9 0.9 0.0 -3.5 -10.7 3.6

 Hours -2.9 -3.0 -1.9 -4.0 -3.7 -7.2 -0.6

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, 1979–2010

Average annual compound rates of change

Country Indicator 1979-2010 1979–1990 1990–2000 2000–2007 2007-2010 2008-2009 2009-2010

United States ULC in nat. cur. 0.3 2.5 -0.4 -2.1 0.2 -0.5 -4.0

Compensation 2.8 4.9 3.8 0.6 -2.6 -9.1 1.6

Output 2.5 2.3 4.2 2.8 -2.8 -8.6 5.8

Australia ULC in nat. cur. NA NA 1.7 3.0 1.3 2.2 -2.4

Compensation NA NA 3.2 4.6 1.6 -0.2 1.9

Output 1.4 1.6 1.5 1.6 0.3 -2.3 4.3

Belgium ULC in nat. cur. 1.0 1.8 0.2 0.8 1.3 4.2 -3.2

Compensation 2.4 4.4 1.6 1.6 -0.6 -4.4 0.6

Output 1.4 2.6 1.5 0.7 -1.9 -8.3 3.9

Canada ULC in nat. cur. 2.0 4.6 -0.3 2.7 -0.9 -2.4 -4.3

Compensation 3.5 6.5 3.8 2.1 -5.0 -13.4 1.1

Output 1.4 1.9 4.2 -0.6 -4.2 -11.3 5.6

Czech Republic ULC in nat. cur. NA NA NA -0.2 -2.4 2.1 -7.6

Compensation NA NA NA 7.2 -0.7 -10.0 2.3

Output NA NA NA 7.4 1.7 -11.9 10.8

Denmark ULC in nat. cur. 2.5 5.7 0.7 1.9 -0.8 4.3 -6.2

Compensation 3.5 7.0 2.5 2.4 -3.1 -8.4 -4.0

Output 1.0 1.3 1.9 0.6 -2.3 -12.1 2.4

Finland ULC in nat. cur. 1.0 5.7 -2.2 -3.1 4.0 19.2 -11.1

Compensation 4.7 9.4 3.3 2.9 -2.7 -10.4 0.2

Output 3.7 3.4 5.5 6.2 -6.5 -24.8 12.8

France ULC in nat. cur. 2.1 5.7 -0.2 0.1 1.8 5.0 -5.4

Compensation 3.0 6.7 1.7 1.3 -1.3 -3.5 -2.0

Output 0.9 0.9 1.9 1.2 -3.0 -8.1 3.5

Germany ULC in nat. cur. 1.1 3.3 0.2 -2.3 4.4 21.9 -10.3

Compensation 1.9 4.6 0.8 0.0 -0.1 -0.1 -0.2

Output 0.7 1.2 0.6 2.4 -4.4 -18.1 11.3

Italy ULC in nat. cur. 4.7 8.8 1.7 2.8 4.2 10.3 -4.6

Compensation 5.5 11.6 3.2 3.0 -1.8 -7.4 -0.2

Output 0.9 2.6 1.4 0.3 -5.8 -16.0 4.6

Japan ULC in nat. cur. -1.1 0.7 -0.9 -3.8 -1.7 11.1 -13.3

Compensation 1.1 5.5 -0.1 -1.5 -4.0 -10.8 1.1

Output 2.2 4.7 0.8 2.3 -2.3 -19.7 16.7

Korea, Republic of ULC in nat. cur. 4.1 7.9 2.6 1.6 1.2 4.1 -0.7

Compensation 13.0 19.5 11.3 8.5 6.4 2.5 14.0

Output 8.6 10.8 8.4 6.8 5.1 -1.5 14.8

Netherlands ULC in nat. cur. 0.5 0.8 0.3 -0.1 1.9 8.4 -7.7

Compensation 2.6 3.2 3.0 1.9 0.7 -0.9 -1.0

Output 2.0 2.4 2.7 2.0 -1.2 -8.6 7.3

Norway ULC in nat. cur. 4.3 6.9 3.5 2.0 2.8 4.7 -0.7

Compensation 5.0 6.4 4.6 4.6 2.3 -1.4 1.2

Output 0.7 -0.5 1.0 2.6 -0.5 -5.8 1.9

Singapore ULC in nat. cur. 0.3 3.7 -1.5 -1.1 -3.1 -0.2 -18.3

Compensation 7.1 11.3 5.8 4.4 2.7 -4.3 6.0

Output 6.8 7.3 7.4 5.5 6.0 -4.2 29.7

Spain ULC in nat. cur. 4.3 7.8 2.7 2.5 1.6 2.9 -4.6

Compensation 5.8 10.1 5.5 3.8 -3.8 -11.2 -3.8

Output 1.4 2.1 2.8 1.2 -5.4 -13.6 0.9

Sweden ULC in nat. cur. 1.2 6.6 -2.2 -2.2 1.7 12.3 -13.9

Compensation 4.5 8.4 3.4 2.7 -1.8 -7.9 -0.5

Output 3.2 1.7 5.7 5.0 -3.5 -18.0 15.6

Taiwan ULC in nat. cur. 0.5 5.5 0.2 -3.8 -5.9 -7.4 -10.7

Compensation 7.1 13.5 5.2 3.1 0.6 -11.5 13.1

Output 6.6 7.5 5.0 7.2 7.0 -4.4 26.7

United Kingdom ULC in nat. cur. 3.1 6.3 1.4 0.8 2.7 7.5 -1.0

Compensation 3.4 7.3 2.3 0.9 -0.9 -3.9 2.6

Output 0.3 0.9 0.9 0.0 -3.5 -10.7 3.6

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, 1979–2010

Average annual compound rates of change

Country Indicator 1979-2010 1979–1990 1990–2000 2000–2007 2007-2010 2008-2009 2009-2010

United States ULC in U.S. dollars 0.3 2.5 -0.4 -2.1 0.2 -0.5 -4.0

ULC in nat. cur. 0.3 2.5 -0.4 -2.1 0.2 -0.5 -4.0

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

Australia ULC in U.S. dollars NA NA -1.3 8.5 4.5 -5.1 13.3

ULC in nat. cur. NA NA 1.7 3.0 1.3 2.2 -2.4

Exchange rates -0.6 -3.2 -2.9 5.4 3.1 -7.1 16.1

Belgium ULC in U.S. dollars 0.9 0.6 -2.5 6.7 0.2 -1.4 -7.9

ULC in nat. cur. 1.0 1.8 0.2 0.8 1.3 4.2 -3.2

Exchange rates -0.1 -1.2 -2.6 5.8 -1.1 -5.4 -4.8

Canada ULC in U.S. dollars 2.4 4.6 -2.7 7.6 0.5 -8.8 6.1

ULC in nat. cur. 2.0 4.6 -0.3 2.7 -0.9 -2.4 -4.3

Exchange rates 0.4 0.0 -2.4 4.8 1.4 -6.6 10.8

Czech Republic ULC in U.S. dollars NA NA NA 9.2 0.0 -8.6 -7.8

ULC in nat. cur. NA NA NA -0.2 -2.4 2.1 -7.6

Exchange rates NA NA NA 9.4 2.4 -10.5 -0.3

Denmark ULC in U.S. dollars 2.3 4.1 -2.0 7.8 -1.9 -0.9 -10.7

ULC in nat. cur. 2.5 5.7 0.7 1.9 -0.8 4.3 -6.2

Exchange rates -0.2 -1.5 -2.6 5.8 -1.1 -5.0 -4.8

Finland ULC in U.S. dollars 0.5 5.9 -7.1 2.6 2.9 12.8 -15.4

ULC in nat. cur. 1.0 5.7 -2.2 -3.1 4.0 19.2 -11.1

Exchange rates -0.5 0.2 -5.1 5.8 -1.1 -5.4 -4.8

France ULC in U.S. dollars 1.6 3.4 -2.9 5.9 0.7 -0.6 -10.0

ULC in nat. cur. 2.1 5.7 -0.2 0.1 1.8 5.0 -5.4

Exchange rates -0.5 -2.2 -2.6 5.8 -1.1 -5.4 -4.8

Germany ULC in U.S. dollars 1.9 4.5 -2.5 3.4 3.3 15.4 -14.7

ULC in nat. cur. 1.1 3.3 0.2 -2.3 4.4 21.9 -10.3

Exchange rates 0.7 1.1 -2.7 5.8 -1.1 -5.4 -4.8

Italy ULC in U.S. dollars 2.8 5.2 -3.8 8.7 3.0 4.4 -9.2

ULC in nat. cur. 4.7 8.8 1.7 2.8 4.2 10.3 -4.6

Exchange rates -1.8 -3.3 -5.4 5.8 -1.1 -5.4 -4.8

Japan ULC in U.S. dollars 1.9 4.6 2.1 -5.0 8.4 22.6 -7.5

ULC in nat. cur. -1.1 0.7 -0.9 -3.8 -1.7 11.1 -13.3

Exchange rates 3.0 3.8 3.0 -1.3 10.3 10.4 6.7

Korea, Republic of ULC in U.S. dollars 1.2 4.1 -2.0 4.5 -6.0 -10.3 9.5

ULC in nat. cur. 4.1 7.9 2.6 1.6 1.2 4.1 -0.7

Exchange rates -2.8 -3.4 -4.5 2.8 -7.0 -13.8 10.3

Netherlands ULC in U.S. dollars 1.2 1.7 -2.4 5.7 0.8 2.6 -12.2

ULC in nat. cur. 0.5 0.8 0.3 -0.1 1.9 8.4 -7.7

Exchange rates 0.6 0.9 -2.7 5.8 -1.1 -5.4 -4.8

Norway ULC in U.S. dollars 3.7 4.9 0.0 8.1 1.8 -6.2 3.3

ULC in nat. cur. 4.3 6.9 3.5 2.0 2.8 4.7 -0.7

Exchange rates -0.6 -1.9 -3.4 6.0 -1.1 -10.4 4.1

Singapore ULC in U.S. dollars 1.8 5.5 -1.0 0.8 0.2 -2.9 -12.8

ULC in nat. cur. 0.3 3.7 -1.5 -1.1 -3.1 -0.2 -18.3

Exchange rates 1.5 1.7 0.5 2.0 3.4 -2.8 6.7

Spain ULC in U.S. dollars 2.3 3.8 -3.0 8.5 0.5 -2.7 -9.2

ULC in nat. cur. 4.3 7.8 2.7 2.5 1.6 2.9 -4.6

Exchange rates -2.0 -3.7 -5.5 5.8 -1.1 -5.4 -4.8

Sweden ULC in U.S. dollars -0.5 3.5 -6.4 2.2 -0.4 -3.4 -8.6

ULC in nat. cur. 1.2 6.6 -2.2 -2.2 1.7 12.3 -13.9

Exchange rates -1.7 -2.9 -4.3 4.5 -2.1 -14.0 6.2

Taiwan ULC in U.S. dollars 0.9 8.3 -1.3 -4.5 -4.6 -11.6 -6.4

ULC in nat. cur. 0.5 5.5 0.2 -3.8 -5.9 -7.4 -10.7

Exchange rates 0.4 2.7 -1.5 -0.7 1.4 -4.5 4.8

United Kingdom ULC in U.S. dollars 2.1 4.7 -0.3 4.9 -5.8 -9.2 -2.3

ULC in nat. cur. 3.1 6.3 1.4 0.8 2.7 7.5 -1.0

Exchange rates -1.0 -1.6 -1.6 4.1 -8.3 -15.6 -1.3

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 September 1

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

release. For more detailed information, see 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 most countries, 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 countries 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 countries. 

 

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