Economic News Release

Productivity and Costs News Release




Transmission of material in this release is embargoed until       USDL-10-0140
8:30 a.m. (EST) Thursday, February 4, 2010

Technical information: (202) 691-5606 •  dprweb@bls.gov • www.bls.gov/lpc
Media contact:         (202) 691-5902 •  PressOffice@bls.gov


                        PRODUCTIVITY AND COSTS 
        Fourth Quarter and Annual Averages 2009, Preliminary
                
Nonfarm business sector labor productivity increased at a 6.2 percent annual
rate during the fourth quarter of 2009, the U.S. Bureau of Labor Statistics
reported today. This gain in productivity reflects increases of 7.2 percent 
in output and 1.0 percent in hours worked. (All quarterly percent changes in
this release are seasonally adjusted annual rates.) This was the first 
quarterly increase in hours worked since the second quarter of 2007 
(0.9 percent). Productivity increased 5.1 percent over the last four quarters
--more than during any similar period since output per hour rose 6.1 percent 
from the first quarter of 2001 to the first quarter of 2002 (table A).  

Labor productivity is calculated by dividing an index of real output by an 
index of the combined hours worked of all persons, including employees, 
proprietors, and unpaid family workers.

Unit labor costs in nonfarm businesses fell 4.4 percent in the fourth quarter
of 2009, a result of the increase in productivity (6.2 percent) outpacing the
increase in hourly compensation (1.5 percent). BLS defines 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. Over the last four quarters, unit labor costs 
declined 2.8 percent, as hourly compensation and productivity increased 2.2 
percent and 5.1 percent, respectively (table A). This decline in unit labor
costs was the largest since unit labor costs fell 3.2 percent over the four 
quarters ending with the first quarter of 2002.


=============================================================================
Data in this release do not reflect the annual benchmark revision of the BLS 
Current Employment Statistics program data to be released February 5, 2010. 
This benchmark will be incorporated in our next release on March 4, 2010.
=============================================================================

Manufacturing sector productivity grew 7.8 percent in the fourth quarter of 
2009, as output rose 6.1 percent and hours worked declined 1.6 percent. 
Productivity grew 6.2 percent in durable goods industries and 9.8 percent in 
nondurable goods industries in the fourth quarter. Over the last four 
quarters, manufacturing productivity increased 6.5 percent as output decreased
4.4 percent and hours fell 10.2 percent (table A).   Unit labor costs in 
manufacturing declined 7.4 percent in the fourth quarter of 2009 and decreased
3.2 percent from the same quarter a year earlier (table A).

The data sources and methods used in the preparation of the manufacturing 
output series differ from those used in preparing the business and nonfarm
business output series, and these measures are not directly comparable.  See 
Technical Notes for further information on data sources. 


Revised measures

Revised and previous measures for the third quarter of 2009 in tables B and D
cover the major sectors: nonfarm business, business, manufacturing and 
nonfinancial corporations. 

In the third quarter of 2009, nonfarm business productivity growth was revised
down from 8.1 percent to 7.2 percent compared to the estimate published on
December 3, reflecting a downward revision to output and a slight upward 
revision to hours. Unit labor costs for nonfarm business fell 1.5 percent, a 
smaller decline than previously reported. In both the manufacturing and 
nonfinancial corporate sectors productivity was revised upward due to upward 
revisions in output. 

Table C presents Annual Averages for the most recent five years. In the 
nonfarm business sector, productivity increased 2.9 percent in 2009, and
reflected the largest annual declines in output and hours (-3.6 percent and 
-6.4 percent, respectively) for these measures, which begin in 1948. 
Manufacturing sector productivity grew 1.3 percent in 2009, due to a decline 
in both output (-11.0 percent) and hours (-12.1 percent)--the largest annual
declines recorded in these series, which begin in 1988. Over the long run, 
from 2000 to 2009, nonfarm business productivity increased at an average 
annual rate of 2.6 percent, and manufacturing productivity increased at a 
rate of 3.1 percent.

Quarterly and annual data for all sectors for 2007 to 2009 appear in tables
1-6.  Full historical measures can be found on the productivity and costs 
home page http://www.bls.gov/lpc/#data.  




___________
The revised Productivity and Costs press release for fourth-quarter 2009
is scheduled to be released on Thursday, March 4, 2010 at 8:30 a.m. (EST).



======================================================================================================
Table A. Preliminary fourth-quarter 2009 measures, percent change from previous quarter, annual rate 
         (Q to Q) and from same quarter a year ago (Y to Y)

Sector                   Nonfarm                                         Durable         Nondurable
                         Business         Business       Manufacturing   Manufacturing   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
------------------------------------------------------------------------------------------------------                       
Productivity             6.2     5.1     6.5     5.2      7.8     6.5     6.2     4.6     9.8     6.0
Output                   7.2    -0.3     7.2    -0.2      6.1    -4.4     5.0    -8.8     7.2     0.0
Hours                    1.0    -5.1     0.6    -5.2     -1.6   -10.2    -1.1   -12.8    -2.4    -5.7
Hourly 
 compensation            1.5     2.2     1.6     2.2     -0.2     3.0    -0.6     4.6     0.5     0.9
Real hourly  
 compensation           -1.9     0.7    -1.8     0.8     -3.5     1.5    -3.9     3.0    -2.8    -0.6
Unit labor costs        -4.4    -2.8    -4.7    -2.8     -7.4    -3.2    -6.4    -0.1    -8.5    -4.8
======================================================================================================
Table B. Revised and previous measures, third quarter 2009

Sector            Nonfarm                                             Durable           Nondurable
                  Business         Business         Manufacturing     Manufacturing     Manufacturing
              Revised Previous  Revised Previous  Revised Previous  Revised Previous  Revised Previous
------------------------------------------------------------------------------------------------------
Productivity     7.2      8.1     7.4     8.5      14.4    13.4      21.9     20.3        6.5     6.1
Output           2.2      2.9     2.2     3.1       9.5     8.4      14.9     13.1        4.7     4.2
Hours           -4.7     -4.8    -4.8    -5.0      -4.2    -4.4      -5.8     -6.0       -1.7    -1.8
Hourly 
 compensation    5.5      5.4     5.9     5.8       6.4     6.5       7.1      7.3        5.5     5.5
Real hourly 
 compensation    1.9      1.8     2.2     2.1       2.7     2.8       3.4      3.5        1.8     1.8
Unit labor 
 costs          -1.5     -2.5    -1.4    -2.4      -7.0    -6.1     -12.2    -10.9       -1.0    -0.5
======================================================================================================
Table C. Annual average changes in productivity and related measures, 2005-2009

Sector                            Nonfarm Business                         Manufacturing
                        2005    2006    2007    2008    2009  |  2005    2006    2007    2008     2009
--------------------------------------------------------------|----------------------------------------
Productivity            1.7     0.9     1.8     1.8     2.9   |  4.8     1.0     3.2     0.8      1.3
Output                  3.4     3.1     2.3    -0.1    -3.6   |  3.7     1.8     1.3    -3.1    -11.0
Hours                   1.7     2.2     0.5    -1.9    -6.4   | -1.1     0.8    -1.8    -3.9    -12.1
Hourly compensation     4.0     3.8     4.2     2.8     2.0   |  3.3     2.0     4.3     3.0      4.8
Real hourly                                                   |
 compensation           0.6     0.5     1.3    -1.0     2.4   |  0.0    -1.3     1.4    -0.8      5.2
Unit labor costs        2.3     2.8     2.3     1.0    -0.9   | -1.4     0.9     1.1     2.1      3.5
======================================================================================================
Table D.  Nonfinancial corporations: revised third-quarter 2009 productivity and cost measures
        
                                                        Real 
                                           Hourly       hourly        Unit                    Implicit
             Produc-                       compen-      compen-       labor       Unit        price
             tivity    Output     Hours    sation       sation        costs       profits     deflator
------------------------------------------------------------------------------------------------------                  
                                        Percent change, annual rate

Revised        6.3       1.4      -4.6       5.3          1.6         -1.0         16.2         -1.8
Previous       5.3       0.2      -4.8       5.2          1.5         -0.1          7.8         -1.6

======================================================================================================






				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 77 
percent of the value of GDP in 2005. Nonfarm business, which excludes 
farming, accounted for about 76 percent of GDP in 2005.
     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 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 2005.
     
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.
      





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
                                           
2007       I     139.0      168.4     121.2     175.2       122.7      126.0       136.7      130.0
          II     140.2      169.8     121.2     176.5       122.4      125.9       139.4      130.9
         III     142.1      171.4     120.6     177.8       122.6      125.1       141.9      131.4
          IV     142.6      172.3     120.8     179.6       122.1      125.9       141.9      131.9
          
      ANNUAL     141.0      170.5     120.9     177.3       122.4      125.7       140.0      131.0
      
2008       I     142.7      171.7     120.3     180.3       121.2      126.3       141.7      132.1
          II     143.8      172.2     119.8     181.0       120.4      125.9       143.8      132.5
         III     143.9      170.6     118.6     183.0       119.9      127.2       145.4      134.0
          IV     144.2      167.4     116.1     184.2       123.3      127.7       143.6      133.6
          
      ANNUAL     143.6      170.5     118.7     182.1       121.1      126.8       143.6      133.0
      
2009       I     144.3      163.6     113.4     182.0       122.6      126.1       148.1      134.3
          II     146.7      163.2     111.3     184.9       124.1      126.1       147.9      134.2
         III    r149.3     r164.1    r109.9    r187.6      r124.8     r125.6      r148.8     r134.3
          IV     151.7      167.0     110.1     188.3       124.2      124.2       151.8      134.4
          
      ANNUAL     147.9      164.5     111.2     185.7       123.9      125.5       149.2      134.3
---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)
                       
2007       I       0.9        0.8      -0.1       4.4         0.6        3.5         4.8        4.0
          II       3.5        3.5       0.0       3.1        -1.1       -0.4         8.0        2.8
         III       5.5        3.7      -1.7       3.0         0.6       -2.4         7.4        1.4
          IV       1.6        2.1       0.5       4.3        -1.4        2.6         0.2        1.6
          
      ANNUAL       1.8        2.2       0.4       4.2         1.3        2.4         3.0        2.6
      
2008       I       0.2       -1.3      -1.5       1.5        -3.0        1.3        -0.5        0.6
          II       3.1        1.1      -1.9       1.6        -2.8       -1.5         5.9        1.4
         III       0.3       -3.7      -4.0       4.5        -1.6        4.2         4.5        4.3
          IV       0.8       -7.2      -8.0       2.6        12.0        1.8        -4.9       -1.0
          
      ANNUAL       1.9        0.0      -1.9       2.7        -1.1        0.8         2.6        1.5
      
2009       I       0.2       -8.7      -8.9      -4.7        -2.4       -4.9        13.3        2.1
          II       6.8       -1.0      -7.4       6.7         5.3       -0.2        -0.5       -0.3
         III      r7.4       r2.2     r-4.8      r5.9        r2.2      r-1.4        r2.4       r0.1
          IV       6.5        7.2       0.6       1.6        -1.8       -4.7         8.2        0.5
          
      ANNUAL       3.0       -3.5      -6.3       2.0         2.3       -1.0         3.9        1.0
---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year
                      
2007       I       0.3        1.5       1.1       4.0         1.6        3.7         1.6        2.9
          II       1.0        2.0       0.9       4.4         1.7        3.3         1.9        2.8
         III       3.0        3.0       0.0       4.8         2.4        1.7         3.3        2.4
          IV       2.9        2.5      -0.3       3.7        -0.3        0.8         5.1        2.5
          
      ANNUAL       1.8        2.2       0.4       4.2         1.3        2.4         3.0        2.6
      
2008       I       2.7        2.0      -0.7       2.9        -1.2        0.2         3.7        1.6
          II       2.6        1.4      -1.2       2.6        -1.7        0.0         3.2        1.2
         III       1.3       -0.5      -1.7       2.9        -2.2        1.6         2.5        2.0
          IV       1.1       -2.8      -3.9       2.5         1.0        1.4         1.2        1.3
          
      ANNUAL       1.9        0.0      -1.9       2.7        -1.1        0.8         2.6        1.5
      
2009       I       1.1       -4.7      -5.7       0.9         1.1       -0.2         4.5        1.7
          II       2.0       -5.2      -7.1       2.2         3.1        0.2         2.9        1.3
         III      r3.8      r-3.8      -7.3       2.5         4.1      r-1.2        r2.3       r0.2
          IV       5.2       -0.2      -5.2       2.2         0.8       -2.8         5.7        0.6
          
      ANNUAL       3.0       -3.5      -6.3       2.0         2.3       -1.0         3.9        1.0
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                       February 4, 2010
r=revised                                                              Source: Bureau of Labor Statistics




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
                                           
2007       I     138.2      168.8     122.1     174.2       122.1      126.0       138.2      130.5
          II     139.2      170.3     122.4     175.1       121.4      125.8       140.9      131.4
         III     141.1      172.0     121.9     176.3       121.5      125.0       143.3      131.7
          IV     141.8      172.8     121.9     178.5       121.3      125.9       143.0      132.2
          
      ANNUAL     140.1      171.0     122.1     176.0       121.6      125.7       141.4      131.5
      
2008       I     141.7      172.0     121.4     179.2       120.5      126.4       142.5      132.3
          II     142.8      172.6     120.8     179.8       119.6      125.9       144.9      132.9
         III     142.8      170.8     119.6     181.8       119.1      127.3       146.6      134.4
          IV     143.1      167.5     117.0     183.1       122.6      128.0       145.3      134.3
          
      ANNUAL     142.6      170.7     119.7     181.0       120.4      126.9       144.8      133.5
      
2009       I     143.2      163.7     114.3     180.9       121.9      126.3       150.5      135.2
          II     145.6      163.2     112.1     183.9       123.5      126.3       150.2      135.1
         III    r148.2     r164.1    r110.8    r186.4      r124.1     r125.8      r151.4     r135.2
          IV     150.4      167.0     111.0     187.1       123.5      124.4       153.8      135.2
          
      ANNUAL     146.8      164.5     112.1     184.6       123.2      125.7       151.5      135.2
---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)
                       
2007       I       1.2        0.9      -0.3       4.7         0.8        3.5         3.9        3.6
          II       2.8        3.7       0.9       2.0        -2.1       -0.7         8.1        2.7
         III       5.5        3.9      -1.5       2.7         0.3       -2.7         7.0        1.1
          IV       2.0        1.8      -0.2       5.0        -0.7        3.0        -0.9        1.4
          
      ANNUAL       1.8        2.3       0.5       4.2         1.3        2.3         2.4        2.3
      
2008       I      -0.1       -1.7      -1.6       1.7        -2.8        1.7        -1.5        0.5
          II       3.1        1.3      -1.7       1.3        -3.0       -1.8         6.9        1.6
         III      -0.1       -4.0      -3.9       4.5        -1.6        4.6         4.7        4.6
          IV       0.8       -7.6      -8.3       2.9        12.3        2.0        -3.5       -0.2
          
      ANNUAL       1.8       -0.1      -1.9       2.8        -1.0        1.0         2.4        1.5
      
2009       I       0.3       -8.8      -9.0      -4.7        -2.4       -5.0        15.2        2.7
          II       6.9       -1.1      -7.5       6.9         5.5        0.0        -0.8       -0.3
         III      r7.2       r2.2     r-4.7      r5.5        r1.9      r-1.5        r3.3       r0.4
          IV       6.2        7.2       1.0       1.5        -1.9       -4.4         6.4        0.0
          
      ANNUAL       2.9       -3.6      -6.4       2.0         2.4       -0.9         4.6        1.3
---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year
                      
2007       I       0.5        1.5       0.9       4.3         1.8        3.7         1.0        2.7
          II       1.1        2.1       1.1       4.3         1.6        3.1         1.3        2.4
         III       2.9        3.2       0.2       4.6         2.2        1.6         2.8        2.1
          IV       2.8        2.6      -0.3       3.6        -0.4        0.7         4.5        2.2
          
      ANNUAL       1.8        2.3       0.5       4.2         1.3        2.3         2.4        2.3
      
2008       I       2.5        1.9      -0.6       2.9        -1.3        0.3         3.1        1.4
          II       2.6        1.3      -1.3       2.7        -1.5        0.1         2.8        1.1
         III       1.2       -0.7      -1.9       3.1        -2.0        1.9         2.3        2.0
          IV       0.9       -3.0      -4.0       2.6         1.0        1.6         1.6        1.6
          
      ANNUAL       1.8       -0.1      -1.9       2.8        -1.0        1.0         2.4        1.5
      
2009       I       1.0       -4.8      -5.8       0.9         1.1       -0.1         5.6        2.2
          II       1.9       -5.4      -7.2       2.3         3.3        0.3         3.7        1.7
         III      r3.8      r-3.9      -7.4       2.5        r4.2      r-1.2        r3.3       r0.6
          IV       5.1       -0.3      -5.1       2.2         0.7       -2.8         5.9        0.7
          
      ANNUAL       2.9       -3.6      -6.4       2.0         2.4       -0.9         4.6        1.3
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                       February 4, 2010
r=revised                                                              Source: Bureau of Labor Statistics




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
                                             
2007       I            176.9        148.0         83.7        172.9          121.1          97.7
          II            178.2        149.3         83.8        172.9          119.9          97.0
         III            180.1        150.3         83.4        172.9          119.2          96.0
          IV            181.6        150.4         82.8        175.6          119.4          96.7
          
      ANNUAL            179.2        149.5         83.4        173.6          119.9          96.9
      
2008       I            182.8        149.9         82.0        175.7          118.1          96.1
          II            181.6        148.0         81.5        176.9          117.6          97.4
         III            180.3        144.4         80.1        178.8          117.1          99.2
          IV            178.1        137.2         77.0        183.9          123.1         103.2
          
      ANNUAL            180.7        144.9         80.2        178.7          118.9          98.9
      
2009       I            177.0        129.1         72.9        183.7          123.7         103.8
          II           r179.9       r126.4         70.2        186.6          125.3        r103.7
         III           r186.1       r129.3        r69.5       r189.5         r126.1        r101.9
          IV            189.6        131.2         69.2        189.5          125.0          99.9
          
      ANNUAL            183.1        129.0         70.5        187.3          125.0         102.3
--------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)
                         
2007       I              3.7          1.8         -1.9          8.2            4.2           4.3
          II              3.0          3.4          0.4          0.0           -4.1          -3.0
         III              4.4          2.7         -1.6          0.1           -2.2          -4.1
          IV              3.3          0.3         -2.9          6.5            0.7           3.1
          
      ANNUAL              3.2          1.3         -1.8          4.3            1.4           1.1
      
2008       I              2.6         -1.2         -3.7          0.1           -4.3          -2.5
          II             -2.5         -5.2         -2.7          2.8           -1.6           5.4
         III             -2.9         -9.3         -6.5          4.3           -1.7           7.5
          IV             -4.7        -18.4        -14.4         12.0           22.2          17.5
          
      ANNUAL              0.8         -3.1         -3.9          3.0           -0.8           2.1
      
2009       I             -2.5        -21.7        -19.8         -0.4            2.0           2.2
          II              6.8         -8.1        -13.9          6.5            5.1         r-0.2
         III            r14.4         r9.5        r-4.2         r6.4           r2.7         r-7.0
          IV              7.8          6.1         -1.6         -0.2           -3.5          -7.4
          
      ANNUAL              1.3        -11.0        -12.1          4.8            5.2           3.5
--------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

2007       I              2.5          0.4         -2.0          4.3            1.9           1.8
          II              3.3          1.3         -2.0          4.9            2.1           1.5
         III              3.3          1.6         -1.6          4.5            2.1           1.2
          IV              3.6          2.0         -1.5          3.6           -0.4           0.0
          
      ANNUAL              3.2          1.3         -1.8          4.3            1.4           1.1
      
2008       I              3.3          1.3         -2.0          1.6           -2.5          -1.7
          II              1.9         -0.9         -2.7          2.3           -1.9           0.4
         III              0.1         -3.9         -4.0          3.4           -1.8           3.3
          IV             -1.9         -8.7         -7.0          4.7            3.1           6.7
          
      ANNUAL              0.8         -3.1         -3.9          3.0           -0.8           2.1
      
2009       I             -3.1        -13.9        -11.1          4.6            4.8           8.0
          II             -0.9        -14.6        -13.8          5.5            6.5           6.5
         III             r3.2       r-10.5        -13.3         r6.0            7.7          r2.7
          IV              6.5         -4.4        -10.2          3.0            1.5          -3.2
          
      ANNUAL              1.3        -11.0        -12.1          4.8            5.2           3.5
--------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                February 4, 2010
r=revised                                                       Source: Bureau of Labor Statistics




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
                                             
2007       I            204.1        180.4         88.4        168.0          117.7          82.3
          II            206.9        183.0         88.5        167.3          116.0          80.9
         III            209.7        185.0         88.2        167.5          115.5          79.9
          IV            212.9        185.7         87.2        170.1          115.6          79.9
          
      ANNUAL            208.4        183.5         88.1        168.2          116.2          80.7
      
2008       I            213.6        185.3         86.8        169.5          113.9          79.4
          II            211.1        181.8         86.1        171.2          113.8          81.1
         III            212.2        178.1         83.9        173.7          113.8          81.8
          IV            204.3        165.1         80.8        178.1          119.2          87.2
          
      ANNUAL            210.4        177.6         84.4        173.0          115.1          82.2
      
2009       I            198.7        150.1         75.6        178.4          120.1          89.8
          II           r200.4       r143.7         71.7        183.3          123.0         r91.5
         III           r210.6       r148.7        r70.6       r186.5         r124.1         r88.6
          IV            213.7        150.6         70.4        186.2          122.8          87.1
          
      ANNUAL            205.7        148.3         72.1        183.5          122.5          89.2
--------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)
                         
2007       I              4.2          1.2         -2.9         10.1            6.0           5.6
          II              5.6          6.0          0.4         -1.7           -5.7          -6.9
         III              5.6          4.4         -1.1          0.4           -1.9          -4.9
          IV              6.3          1.4         -4.5          6.3            0.5           0.1
          
      ANNUAL              4.0          1.8         -2.1          4.7            1.8           0.7
      
2008       I              1.2         -0.9         -2.0         -1.4           -5.7          -2.5
          II             -4.6         -7.3         -2.9          4.1           -0.4           9.1
         III              2.2         -7.9         -9.9          5.9           -0.2           3.6
          IV            -14.2        -26.2        -14.1         10.5           20.6          28.8
          
      ANNUAL              0.9         -3.3         -4.2          2.8           -1.0           1.9
      
2009       I            -10.5        -31.6        -23.5          0.7            3.1          12.6
          II             r3.5       r-16.1        -18.9         11.5           10.0          r7.7
         III            r21.9        r14.9        r-5.8         r7.1           r3.4        r-12.2
          IV              6.2          5.0         -1.1         -0.6           -3.9          -6.4
          
      ANNUAL             -2.2        -16.5        -14.6          6.1            6.5           8.5
--------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year
                     
2007       I              2.6          0.3         -2.3          4.9            2.4           2.2
          II              4.1          1.4         -2.6          5.3            2.6           1.2
         III              4.0          2.3         -1.6          5.0            2.7           1.0
          IV              5.4          3.2         -2.1          3.7           -0.3          -1.6
          
      ANNUAL              4.0          1.8         -2.1          4.7            1.8           0.7
      
2008       I              4.6          2.7         -1.8          0.9           -3.2          -3.6
          II              2.0         -0.7         -2.6          2.3           -1.9           0.3
         III              1.2         -3.7         -4.9          3.7           -1.5           2.5
          IV             -4.1        -11.1         -7.3          4.7            3.1           9.1
          
      ANNUAL              0.9         -3.3         -4.2          2.8           -1.0           1.9
      
2009       I             -7.0        -19.0        -12.9          5.3            5.5          13.1
          II            r-5.1        -21.0        -16.8          7.1            8.1          12.8
         III            r-0.8       r-16.5       r-15.8          7.4            9.1          r8.2
          IV              4.6         -8.8        -12.8          4.6            3.0          -0.1
          
      ANNUAL             -2.2        -16.5        -14.6          6.1            6.5           8.5
--------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                February 4, 2010
r=revised                                                       Source: Bureau of Labor Statistics




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
                                             
2007       I            151.3        115.9         76.6        179.7          125.9         118.8
          II            151.4        116.0         76.7        181.2          125.6         119.7
         III            152.6        116.3         76.2        180.9          124.7         118.5
          IV            152.3        116.0         76.2        184.1          125.1         120.8
          
      ANNUAL            151.9        116.1         76.4        181.5          125.3         119.5
      
2008       I            154.3        115.6         74.9        185.2          124.5         120.0
          II            154.2        114.8         74.4        185.3          123.2         120.2
         III            150.1        111.6         74.4        186.3          122.1         124.1
          IV            152.3        108.7         71.4        192.8          129.1         126.6
          
      ANNUAL            152.7        112.7         73.8        187.4          124.6         122.7
      
2009       I            153.2        105.6         69.0        192.1          129.4         125.4
          II           r155.2       r105.6         68.1        191.8          128.7        r123.6
         III           r157.6       r106.8        r67.8       r194.3         r129.3        r123.3
          IV            161.4        108.7         67.4        194.6          128.4         120.6
          
      ANNUAL            156.8        106.7         68.0        193.2          129.0         123.2
--------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)
                         
2007       I              2.4          2.4          0.0          4.9            1.1           2.4
          II              0.3          0.7          0.4          3.3           -0.9           3.0
         III              3.4          0.8         -2.5         -0.6           -2.9          -3.9
          IV             -0.9         -0.9          0.0          7.1            1.3           8.0
          
      ANNUAL              2.0          0.9         -1.1          3.6            0.8           1.6
      
2008       I              5.4         -1.4         -6.5          2.6           -1.9          -2.7
          II             -0.4         -2.8         -2.5          0.2           -4.0           0.6
         III            -10.2        -10.6         -0.5          2.1           -3.8          13.7
          IV              6.0         -9.9        -15.0         14.7           25.2           8.2
          
      ANNUAL              0.6         -2.9         -3.4          3.3           -0.6           2.7
      
2009       I              2.2        -11.1        -13.0         -1.5            0.9          -3.6
          II             r5.4          0.0         -5.1         -0.7           -2.0          -5.8
         III             r6.5         r4.7        r-1.7          5.5            1.8         r-1.0
          IV              9.8          7.2         -2.4          0.5           -2.8          -8.5
          
      ANNUAL              2.7         -5.3         -7.8          3.1            3.5           0.4
--------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year
                     
2007       I              2.3          0.7         -1.6          3.4            0.9           1.1
          II              2.1          1.2         -0.9          4.1            1.4           2.0
         III              2.5          0.9         -1.6          3.4            1.1           0.9
          IV              1.3          0.8         -0.5          3.7           -0.4           2.3
          
      ANNUAL              2.0          0.9         -1.1          3.6            0.8           1.6
      
2008       I              2.0         -0.2         -2.2          3.1           -1.1           1.0
          II              1.9         -1.1         -2.9          2.3           -1.9           0.4
         III             -1.7         -4.0         -2.4          3.0           -2.1           4.7
          IV              0.0         -6.3         -6.3          4.8            3.2           4.8
          
      ANNUAL              0.6         -2.9         -3.4          3.3           -0.6           2.7
      
2009       I             -0.8         -8.7         -8.0          3.7            3.9           4.5
          II              0.6         -8.0         -8.6          3.5            4.5           2.8
         III             r5.0        r-4.3         -8.9          4.3            5.9         r-0.7
          IV              6.0          0.0         -5.7          0.9           -0.6          -4.8
          
      ANNUAL              2.7         -5.3         -7.8          3.1            3.5           0.4
--------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                February 4, 2010
r=revised                                                       Source: Bureau of Labor Statistics




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

2007       I    143.5    175.1     122.0    164.2     115.0     114.4    123.1    116.8    171.2    121.8
          II    144.5    176.5     122.1    165.2     114.6     114.4    124.9    117.2    171.8    122.2
         III    144.1    175.8     122.0    166.2     114.5     115.3    127.4    118.6    155.6    122.0
          IV    145.9    178.5     122.3    168.3     114.4     115.3    127.9    118.7    149.9    121.6

      ANNUAL    144.5    176.5     122.1    166.0     114.6     114.9    125.8    117.8    162.1    121.9

2008       I    145.0    176.9     122.0    168.6     113.4     116.3    129.1    119.8    133.0    121.0
          II    147.4    178.8     121.3    169.7     112.9     115.1    129.2    118.9    134.7    120.4
         III    148.6    178.4     120.1    171.8     112.5     115.6    129.8    119.4    145.3    121.8
          IV    148.0    174.6     117.9    173.7     116.3     117.3    134.1    121.8    129.5    122.5

      ANNUAL    147.2    177.2     120.3    170.9     113.7     116.1    130.5    120.0    135.7    121.4

2009       I    145.3    166.6     114.7    171.6     115.6     118.1    139.1    123.8    127.5    124.1
          II    148.2    166.4     112.3    173.5     116.5     117.1    138.0    122.7    133.8    123.7
         III   r150.5   r167.0    r110.9   r175.8    r117.0    r116.8   r134.6   r121.6   r138.9   r123.2
----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

2007       I     -0.2      0.2       0.4      4.3       0.4       4.5      7.5      5.3    -10.2      3.2
          II      2.8      3.2       0.4      2.5      -1.6      -0.3      5.8      1.4      1.5      1.4
         III     -1.1     -1.5      -0.4      2.3      -0.1       3.4      8.2      4.8    -32.7     -0.7
          IV      5.3      6.2       0.9      5.3      -0.4       0.0      1.5      0.5    -13.8     -1.3

      ANNUAL      1.0      1.7       0.7      3.6       0.8       2.6      5.8      3.5     -9.9      1.7

2008       I     -2.7     -3.6      -1.0      0.7      -3.7       3.5      3.9      3.6    -38.0     -1.9
          II      6.9      4.4      -2.4      2.6      -1.8      -4.0      0.5     -2.7      5.0     -2.0
         III      3.2     -0.8      -3.9      4.9      -1.2       1.6      1.8      1.6     35.5      4.8
          IV     -1.4     -8.3      -6.9      4.6      14.1       6.1     13.9      8.3    -37.0      2.4

      ANNUAL      1.9      0.4      -1.5      3.0      -0.8       1.1      3.7      1.8    -16.3     -0.4

2009       I     -7.3    -17.1     -10.5     -4.7      -2.4       2.9     15.8      6.6     -5.8      5.3
          II      8.4     -0.6      -8.3      4.5       3.2      -3.6     -3.2     -3.5     21.0     -1.3
         III     r6.3     r1.4     r-4.6     r5.3      r1.6     r-1.0    r-9.4    r-3.6    r16.2    r-1.8
----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

2007       I      0.3      1.4       1.1      3.3       0.8       2.9      5.5      3.7     -3.0      2.8
          II      1.7      2.6       0.9      3.7       1.0       2.0      5.0      2.8     -2.2      2.1
         III      0.5      0.9       0.4      4.0       1.6       3.5      7.0      4.5    -18.7      1.1
          IV      1.6      2.0       0.3      3.6      -0.4       1.9      5.7      3.0    -14.7      0.6

      ANNUAL      1.0      1.7       0.7      3.6       0.8       2.6      5.8      3.5     -9.9      1.7

2008       I      1.0      1.0       0.0      2.7      -1.5       1.7      4.8      2.6    -22.3     -0.6
          II      2.0      1.3      -0.7      2.7      -1.5       0.7      3.5      1.5    -21.6     -1.5
         III      3.1      1.5      -1.6      3.4      -1.8       0.2      1.9      0.7     -6.6     -0.1
          IV      1.4     -2.2      -3.6      3.2       1.6       1.7      4.9      2.6    -13.6      0.8

      ANNUAL      1.9      0.4      -1.5      3.0      -0.8       1.1      3.7      1.8    -16.3     -0.4

2009       I      0.2     -5.8      -6.0      1.8       2.0       1.6      7.7      3.4     -4.1      2.6
          II      0.6     -6.9      -7.4      2.2       3.2       1.7      6.8      3.2     -0.7      2.8
         III     r1.3    r-6.4     r-7.6      2.3       3.9      r1.0     r3.7     r1.8    r-4.4     r1.1
----------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                        February 4, 2010
r=revised                                                               Source: Bureau of Labor Statistics







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 +1.4 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 third quarter of 2009.	


			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 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 1978-2008 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.




Last Modified Date: February 04, 2010
Recommend this page using: