Economic News Release

Productivity and Costs News Release

Transmission of material in this release is embargoed until     USDL-11-0808
8:30 a.m. (EDT) Thursday, June 2, 2011

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



                          PRODUCTIVITY AND COSTS
                        First Quarter 2011, Revised
                               
Nonfarm business sector labor productivity increased at a 1.8 percent annual 
rate during the first quarter of 2011, the U.S. Bureau of Labor Statistics 
reported today. The gain in productivity reflects increases of 3.2 percent 
in output and 1.4 percent in hours worked. (All quarterly percent changes in 
this release are seasonally adjusted annual rates.) From the first quarter 
of 2010 to the first quarter of 2011, output increased 3.2 percent while 
hours rose 1.9 percent, yielding an increase in productivity of 1.3 percent. 
(See tables A and 2.) 

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

Unit labor costs in nonfarm businesses rose 0.7 percent in the first quarter 
of 2011, as a 2.5 percent increase in hourly compensation outpaced the 1.8 
percent gain in productivity. Unit labor costs also rose 0.7 percent from the 
same quarter a year ago. (See tables A and 2.) In the first quarter of 2011, 
the consumer price series increased at a 5.3 percent annual rate, resulting 
in a decline of 2.6 percent in real hourly compensation. 

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. Real hourly 
compensation is equal to hourly compensation divided by the consumer price 
series.

Manufacturing sector productivity grew 4.2 percent in the first quarter of 
2011, as output and hours worked increased 7.7 percent and 3.3 percent, 
respectively. Over the last four quarters, manufacturing productivity 
increased 4.1 percent. Unit labor costs in manufacturing declined 1.4 percent 
in the first quarter of 2011 and 0.7 percent over the last four quarters. 

Productivity increased 7.5 percent in the durable goods sector and 2.6 
percent in the nondurable goods sector in the first quarter of 2011. In 
durable goods industries, a 14.0 percent jump in output outweighed 
a 6.1 percent increase in hours worked. Nondurable goods production rose 
1.5 percent while hours fell 1.1 percent.  (See tables A, 3, 4 and 5.) 

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. 

Preliminary first quarter 2011 measures of productivity and costs were 
announced for the nonfinancial corporate sector.  Productivity increased 
4.1 percent in the first quarter of 2011 as output and hours rose 6.2 
percent and 2.0 percent, respectively. (See tables C and 6.)


Revised measures

The measures released today were based on more recent source data than were 
available for the preliminary report. Table B presents previous and revised 
productivity and related measures for the major sectors: business, nonfarm 
business, and manufacturing, for the first quarter of 2011 and the fourth 
quarter of 2010.

In the first quarter of 2011, nonfarm business productivity growth was revised 
up to 1.8 percent from the 1.6 percent preliminary estimate, reflecting an 
upward revision to output. Unit labor costs increased 0.7 percent in the first 
quarter, a slightly smaller gain than reported May 5. In the manufacturing 
sector, productivity growth in the first quarter was revised down to 4.2 
percent from 6.3 percent due to a downward revision to output. Unit labor 
costs declined 1.4 percent rather than falling 3.5 percent as 
previously reported.

In the fourth quarter of 2010, nonfarm business productivity was unrevised, 
while a 1.8 percentage point downward revision to hourly compensation resulted 
in a larger decline in unit labor costs (-2.8 percent) than was previously 
reported. In the manufacturing sector, a downward revision to productivity 
and an upward revision to hourly compensation resulted in a smaller decline 
in unit labor costs than was reported on May 5. In the nonfinancial corporate 
sector, productivity growth was revised down to 1.6 percent from a previous 
estimate of 2.6 percent. 
___________




The preliminary Productivity and Costs press release for second-quarter 2011 
is scheduled to be released on Tuesday, August 9, 2011 at 8:30 a.m. (EDT).


======================================================================================================
Table A. Revised first-quarter 2011 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             1.8    1.3      0.9     1.1     4.2     4.1     7.5     6.4     2.6     2.6
Output                   3.2    3.2      2.6     3.1     7.7     6.6    14.0    10.6     1.5     2.5
Hours                    1.4    1.9      1.7     2.0     3.3     2.4     6.1     3.9    -1.1    -0.1
Hourly 
 compensation            2.5    2.0      2.3     2.0     2.8     3.4     2.9     3.7     2.1     2.3
Real hourly 
 compensation           -2.6   -0.2     -2.8    -0.2    -2.4     1.1    -2.3     1.5    -3.0     0.1
Unit labor 
 costs                   0.7    0.7      1.5     0.9    -1.4    -0.7    -4.3    -2.5    -0.5    -0.3

======================================================================================================
Table B. Revised and previous measures: first quarter 2011 and fourth quarter 2010

Sector            Nonfarm                                             Durable           Nondurable
                  Business         Business         Manufacturing     Manufacturing     Manufacturing
              Revised Previous  Revised Previous  Revised Previous  Revised Previous  Revised Previous
------------------------------------------------------------------------------------------------------
                               Percent change, annual rate, first quarter 2011

Productivity    1.8     1.6       0.9     0.7       4.2     6.3       7.5       9.8     2.6     4.5
Output          3.2     3.1       2.6     2.4       7.7     9.7      14.0      16.4     1.5     3.3
Hours           1.4     1.4       1.7     1.7       3.3     3.3       6.1       6.1    -1.1    -1.2
Hourly 
 compensation   2.5     2.6       2.3     2.4       2.8     2.6       2.9       2.4     2.1     2.2
Real hourly  
 compensation  -2.6    -2.5      -2.8    -2.7      -2.4    -2.6      -2.3      -2.7    -3.0    -2.9
Unit labor  
 costs          0.7     1.0       1.5     1.7      -1.4    -3.5      -4.3      -6.7    -0.5    -2.2
------------------------------------------------------------------------------------------------------
 
                               Percent change, annual rate, fourth quarter 2010

Productivity    2.9     2.9       2.7     2.7       4.9     5.1       5.4       5.5     5.3     5.4
Output          4.4     4.4       4.2     4.2       3.9     4.0       5.8       5.9     1.9     2.0
Hours           1.5     1.5       1.5     1.5      -1.0    -1.0       0.4       0.4    -3.2    -3.2
Hourly 
 compensation   0.1     1.9      -0.1     1.7       3.3     2.7       3.3       2.6     2.7     2.5
Real hourly 
 compensation  -2.6    -0.8      -2.7    -0.9       0.6     0.0       0.6      -0.1     0.0    -0.2
Unit labor 
 costs         -2.8    -1.0      -2.7    -0.9      -1.6    -2.3      -2.0      -2.8    -2.4    -2.8
 
======================================================================================================
Table C. Nonfinancial corporations: Preliminary first-quarter 2011 measures, and revised and previous 
fourth-quarter 2010 measures
                                                        Real 
                                           Hourly       hourly        Unit                    Implicit
             Produc-                       compen-      compen-       labor       Unit        price
             tivity    Output     Hours    sation       sation        costs       profits     deflator
------------------------------------------------------------------------------------------------------ 
                           Percent change, annual rate, first quarter 2011

Q to Q        4.1       6.2        2.0      2.4         -2.7          -1.6         15.4         0.1
Y to Y        0.7       3.2        2.6      2.0         -0.2           1.3          6.6         1.4

                           Percent change, annual rate, fourth quarter 2010

Revised       1.6       3.4        1.8      0.4         -2.2          -1.1         -7.6        -1.5
Previous      2.6       4.5        1.8      2.1         -0.6          -0.5         -8.6        -1.5

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

			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 75 
percent of the value of GDP in 2009. Nonfarm business, which excludes 
farming, accounted for about 74 percent of GDP in 2009.
     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 47 percent of the value of GDP in 2009.
     
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: The measure includes accrued wages and salaries, 
supplements, employer contributions to employee benefit plans, and taxes. 
Estimates of labor compensation by major sector, required for measures of 
hourly compensation and unit labor costs, are based primarily on employee 
compensation data from the NIPA, prepared by the BEA. The compensation of 
employees in general government, nonprofit institutions and private 
households are subtracted from compensation of domestic employees to 
derive employee compensation for the business sector. The labor 
compensation of proprietors cannot be explicitly identified and must be 
estimated. This is done by assuming that proprietors have the same hourly 
compensation as employees in the same sector. The quarterly labor 
productivity and cost measures do not contain estimates of compensation 
for unpaid family workers.  
      
Unit Labor Costs: 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 percent changes from the previous quarter presented at a 
compound annual rate, as percent changes from the corresponding quarter of 
the previous year, and as index number series where 2005=100. Annual data 
are presented both as index number series and percent changes from the 
previous year.  
	The index numbers and rates of change reported in the productivity 
and costs news release are rounded to one decimal place. All percent 
changes in this release and on the BLS web site are calculated using index 
numbers to three decimal places. These index numbers are available at the 
BLS web site, www.bls.gov/data/home.htm, or by contacting the BLS Division 
of Major Sector Productivity. (Telephone 202-691-5606 or email 
DPRWEB@BLS.GOV)
      
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
             Output                            Compen-    compen-               Unit       Implicit
 Year        per hour               Hours      sation     sation      Unit      nonlabor   price
 and         of all                 of all     per hour   per hour    labor     payments   deflator
 quarter     persons     Output     persons      (1)        (2)       costs       (3)        (4)
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)

2011 I         0.9 r       2.6 r      1.7        2.3 r     -2.8 r      1.5 r      2.8 r      2.0 r

2010 ANNUAL    3.9         3.7       -0.2        2.2 r      0.5 r     -1.6 r      4.8 r      1.0  

2010 IV        2.7         4.2        1.5       -0.1 r     -2.7 r     -2.7 r      3.0 r     -0.3  
     III       2.6         3.8        1.2        2.7        1.3        0.1        5.3        2.3  
     II       -1.7         1.8        3.5        2.9        3.5        4.7       -0.5        2.5  
     I         4.2         5.0        0.7       -0.4       -1.6       -4.4        9.5        1.2  

2009 ANNUAL    3.7        -3.7       -7.1        2.0        2.4       -1.6        3.8        0.5  

2009 IV        6.8         6.5       -0.3        2.2       -0.5       -4.3        5.1       -0.5  
     III       6.8         1.6       -4.9        3.3       -0.4       -3.3        7.4        0.9  
     II        8.8        -0.3       -8.4        9.6        7.5        0.7       -3.0       -0.8  
     I         3.9        -6.2       -9.7       -3.2       -0.9       -6.9       13.5        0.8  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2011 I         1.1         3.1        2.0        2.0 r     -0.2 r      0.9 r      2.6 r      1.6  

2010 ANNUAL    3.9         3.7       -0.2        2.2 r      0.5 r     -1.6 r      4.8 r      1.0  

2010 IV        1.9         3.7        1.7        1.3 r      0.1 r     -0.6 r      4.3 r      1.4  
     III       2.9         4.3        1.3        1.9        0.6       -1.1        4.8        1.3  
     II        4.0         3.7       -0.3        2.0        0.2       -1.9        5.3        1.0  
     I         6.6         3.2       -3.3        3.6        1.2       -2.9        4.7        0.2  

2009 ANNUAL    3.7        -3.7       -7.1        2.0        2.4       -1.6        3.8        0.5  

2009 IV        6.6         0.3       -5.9        2.9        1.4       -3.5        5.6        0.1  
     III       4.8        -3.7       -8.0        2.5        4.2       -2.1        2.2       -0.4  
     II        2.7        -5.5       -8.0        2.5        3.5       -0.2        1.8        0.6  
     I         0.8        -5.6       -6.4        0.2        0.4       -0.6        5.5        1.8  
---------------------------------------------------------------------------------------------------
                                         Indexes 2005=100

2011 I       112.6 r     106.1 r     94.3 r    117.5 r    103.2 r    104.3 r    119.0 r    110.2 r

2010 ANNUAL  111.6       104.1       93.3      116.2 r    104.1 r    104.2 r    116.9 r    109.2  

2010 IV      112.4       105.5       93.9      116.8 r    103.9 r    104.0 r    118.2 r    109.6  
     III     111.6       104.4       93.5      116.8      104.6      104.7      117.3      109.7  
     II      110.9       103.4       93.3      116.1      104.3      104.6      115.9      109.1  
     I       111.4       103.0       92.4      115.2      103.4      103.4      116.0      108.4  

2009 ANNUAL  107.4       100.4       93.4      113.7      103.5      105.9      111.5      108.1  

2009 IV      110.2       101.7       92.3      115.3      103.8      104.6      113.4      108.1  
     III     108.4       100.1       92.3      114.7      104.0      105.8      112.0      108.2  
     II      106.7        99.8       93.5      113.8      104.1      106.7      110.0      108.0  
     I       104.4        99.8       95.6      111.2      102.2      106.5      110.8      108.2  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                       June 2, 2011
r=revised                                                        Source: Bureau of Labor Statistics

Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs, and prices,
seasonally adjusted
                                                          Real
             Output                            Compen-    compen-               Unit       Implicit
 Year        per hour               Hours      sation     sation      Unit      nonlabor   price
 and         of all                 of all     per hour   per hour    labor     payments   deflator
 quarter     persons     Output     persons      (1)        (2)       costs       (3)        (4)
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)

2011 I         1.8 r       3.2 r      1.4        2.5 r     -2.6 r      0.7 r      2.3 r      1.4 r

2010 ANNUAL    3.9         3.7       -0.2        2.2 r      0.6 r     -1.6 r      4.4 r      0.8  

2010 IV        2.9         4.4        1.5        0.1 r     -2.6 r     -2.8 r      1.7 r     -0.9  
     III       2.3         3.8        1.4        2.5        1.0        0.1        4.3        1.9  
     II       -1.7         1.6        3.3        3.1        3.7        4.9       -0.4        2.6  
     I         4.6         5.0        0.4       -0.2       -1.4       -4.6        9.7        1.2  

2009 ANNUAL    3.7        -3.8       -7.2        2.0        2.4       -1.6        4.6        0.8  

2009 IV        6.7         6.7        0.1        2.3       -0.5       -4.1        3.4       -1.1  
     III       6.5         1.4       -4.8        2.9       -0.7       -3.4        8.1        1.1  
     II        8.9        -0.2       -8.4        9.7        7.7        0.7       -2.9       -0.8  
     I         3.8        -6.4       -9.8       -3.3       -1.0       -6.8       15.4        1.4  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2011 I         1.3         3.2        1.9        2.0 r     -0.2 r      0.7 r      1.9 r      1.2  

2010 ANNUAL    3.9         3.7       -0.2        2.2 r      0.6 r     -1.6 r      4.4 r      0.8  

2010 IV        2.0         3.7        1.7        1.4 r      0.1 r     -0.6 r      3.8 r      1.2  
     III       2.9         4.3        1.3        1.9        0.7       -1.0        4.2        1.1  
     II        4.0         3.7       -0.3        2.0        0.2       -1.9        5.1        0.9  
     I         6.7         3.2       -3.2        3.6        1.2       -2.9        4.5        0.1  

2009 ANNUAL    3.7        -3.8       -7.2        2.0        2.4       -1.6        4.6        0.8  

2009 IV        6.5         0.3       -5.8        2.8        1.3       -3.5        5.8        0.2  
     III       4.8        -3.8       -8.2        2.5        4.2       -2.1        3.2        0.0  
     II        2.7        -5.6       -8.1        2.6        3.6       -0.1        2.7        1.0  
     I         0.8        -5.7       -6.5        0.2        0.4       -0.6        6.8        2.2  
---------------------------------------------------------------------------------------------------
                                         Indexes 2005=100

2011 I       112.8 r     106.3 r     94.2 r    117.6 r    103.2 r    104.2 r    118.4 r    109.8 r

2010 ANNUAL  111.5       104.0       93.3      116.2 r    104.1 r    104.2 r    116.8 r    109.2  

2010 IV      112.3       105.4       93.9      116.8 r    103.9 r    104.0 r    117.8 r    109.4  
     III     111.5       104.3       93.5      116.8      104.6      104.7      117.3      109.7  
     II      110.9       103.3       93.2      116.1      104.3      104.7      116.0      109.2  
     I       111.4       102.9       92.4      115.2      103.4      103.5      116.2      108.5  

2009 ANNUAL  107.4       100.3       93.4      113.7      103.5      105.9      111.9      108.3  

2009 IV      110.1       101.7       92.3      115.3      103.8      104.7      113.5      108.2  
     III     108.4       100.0       92.3      114.6      103.9      105.8      112.6      108.5  
     II      106.7        99.7       93.5      113.8      104.1      106.7      110.4      108.2  
     I       104.4        99.7       95.5      111.2      102.2      106.5      111.2      108.4  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                       June 2, 2011
r=revised                                                        Source: Bureau of Labor Statistics

Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
                                                                              Real
                 Output                                        Compen-        compen-
 Year            per hour                      Hours           sation         sation         Unit
 and             of all                        of all          per hour       per hour       labor
 quarter         persons        Output         persons           (1)            (2)          costs
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)

2011 I             4.2 r          7.7 r          3.3            2.8 r         -2.4 r         -1.4 r

2010 ANNUAL        5.9            5.8            0.0            2.0            0.4 r         -3.6 r

2010 IV            4.9 r          3.9 r         -1.0            3.3 r          0.6 r         -1.6 r
     III           2.1            5.6            3.4            2.5            1.0            0.3  
     II            5.2            9.2            3.8            4.9            5.5           -0.2  
     I             4.7            7.8            3.0           -4.4           -5.6           -8.6  

2009 ANNUAL       -0.4          -13.3          -13.0            5.7            6.1            6.1  

2009 IV            6.9            6.1           -0.8            4.3            1.5           -2.5  
     III          12.4            6.8           -4.9            3.2           -0.5           -8.2  
     II            5.3          -11.0          -15.4            8.6            6.6            3.1  
     I            -2.9          -22.3          -20.0            4.7            7.2            7.9  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2011 I             4.1 r          6.6 r          2.4 r          3.4 r          1.1 r         -0.7 r

2010 ANNUAL        5.9            5.8            0.0            2.0            0.4 r         -3.6 r

2010 IV            4.2 r          6.6            2.3            1.5 r          0.3 r         -2.6 r
     III           4.7            7.2            2.3            1.8            0.5           -2.8  
     II            7.2            7.5            0.2            1.9            0.1           -5.0  
     I             7.3            2.2           -4.8            2.8            0.4           -4.2  

2009 ANNUAL       -0.4          -13.3          -13.0            5.7            6.1            6.1  

2009 IV            5.3           -5.9          -10.6            5.2            3.6           -0.1  
     III           1.7          -12.8          -14.2            5.8            7.5            4.0  
     II           -2.6          -17.3          -15.1            6.4            7.5            9.3  
     I            -5.5          -16.6          -11.8            5.2            5.3           11.3  
---------------------------------------------------------------------------------------------------
                                         Indexes 2005=100

2011 I           113.1 r         94.7 r         83.8 r        120.2 r        105.6 r        106.3 r

2010 ANNUAL      110.3 r         91.2 r         82.7          118.0 r        105.6 r        107.0 r

2010 IV          111.9 r         93.0 r         83.1          119.4 r        106.2 r        106.7 r
     III         110.6           92.1           83.3          118.5          106.1          107.1  
     II          110.0           90.9           82.6          117.7          105.8          107.0  
     I           108.6           88.9           81.8          116.3          104.4          107.1  

2009 ANNUAL      104.2           86.2           82.7          115.6          105.3          111.0  

2009 IV          107.4           87.2           81.2          117.6          105.9          109.6  
     III         105.6           85.9           81.4          116.4          105.5          110.2  
     II          102.6           84.5           82.4          115.5          105.6          112.6  
     I           101.2           87.0           86.0          113.2          104.0          111.8  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                       June 2, 2011
r=revised                                                        Source: Bureau of Labor Statistics

Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
                                                                              Real
                 Output                                        Compen-        compen-
 Year            per hour                      Hours           sation         sation         Unit
 and             of all                        of all          per hour       per hour       labor
 quarter         persons        Output         persons           (1)            (2)          costs
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)

2011 I             7.5 r         14.0 r          6.1            2.9 r         -2.3 r         -4.3 r

2010 ANNUAL        8.1            8.0           -0.1            2.6            1.0 r         -5.0 r

2010 IV            5.4 r          5.8 r          0.4            3.3 r          0.6 r         -2.0 r
     III           1.7            8.3            6.5            0.0           -1.4           -1.7  
     II           11.3           14.5            2.8            8.9            9.5           -2.2  
     I             6.2           10.2            3.8           -5.2           -6.3          -10.7  

2009 ANNUAL       -3.5          -18.4          -15.5            6.2            6.6           10.0  

2009 IV            6.8            6.4           -0.4            5.0            2.1           -1.7  
     III          19.4           11.5           -6.6            2.7           -1.0          -14.0  
     II            3.7          -17.5          -20.5           14.3           12.2           10.2  
     I            -8.8          -30.3          -23.6            2.8            5.3           12.7  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2011 I             6.4 r         10.6 r          3.9            3.7 r          1.5 r         -2.5 r

2010 ANNUAL        8.1            8.0           -0.1            2.6            1.0 r         -5.0 r

2010 IV            6.1            9.7            3.4            1.7 r          0.4 r         -4.2 r
     III           6.5            9.8            3.2            2.1            0.8           -4.1  
     II           10.8           10.6           -0.2            2.7            0.9           -7.3  
     I             8.9            1.9           -6.4            4.0            1.5           -4.5  

2009 ANNUAL       -3.5          -18.4          -15.5            6.2            6.6           10.0  

2009 IV            4.8           -9.1          -13.3            6.1            4.5            1.2  
     III          -1.2          -17.8          -16.8            6.5            8.2            7.7  
     II           -6.6          -23.4          -18.0            7.4            8.4           15.0  
     I            -9.7          -21.9          -13.4            4.9            5.1           16.2  
---------------------------------------------------------------------------------------------------
                                         Indexes 2005=100

2011 I           114.8 r         94.3 r         82.1          122.0 r        107.1 r        106.2 r

2010 ANNUAL      110.7 r         88.7 r         80.1          119.7 r        107.2 r        108.2 r

2010 IV          112.8 r         91.3 r         80.9          121.1 r        107.7 r        107.4 r
     III         111.3           90.0           80.9          120.1          107.6          107.9  
     II          110.8           88.2           79.6          120.1          107.9          108.4  
     I           107.9           85.3           79.0          117.6          105.5          109.0  

2009 ANNUAL      102.4           82.1           80.2          116.7          106.2          113.9  

2009 IV          106.3           83.2           78.3          119.1          107.2          112.1  
     III         104.5           81.9           78.4          117.7          106.7          112.6  
     II          100.0           79.7           79.7          116.9          106.9          116.9  
     I            99.1           83.7           84.4          113.1          103.9          114.1  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                       June 2, 2011
r=revised                                                        Source: Bureau of Labor Statistics

Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
                                                                              Real
                 Output                                        Compen-        compen-
 Year            per hour                      Hours           sation         sation         Unit
 and             of all                        of all          per hour       per hour       labor
 quarter         persons        Output         persons           (1)            (2)          costs
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)

2011 I             2.6 r          1.5 r         -1.1 r          2.1 r         -3.0 r         -0.5 r

2010 ANNUAL        3.6            3.7            0.1            0.9           -0.7           -2.6  

2010 IV            5.3 r          1.9 r         -3.2            2.7 r          0.0 r         -2.4 r
     III           4.2            2.8           -1.3            6.3            4.9            2.0  
     II           -1.4            4.0            5.4           -1.7           -1.2           -0.4  
     I             3.6            5.4            1.7           -3.1           -4.3           -6.5  

2009 ANNUAL        1.3           -7.5           -8.7            5.2            5.6            3.9  

2009 IV            7.3            5.8           -1.4            2.9            0.1           -4.1  
     III           4.5            2.3           -2.2            4.5            0.8           -0.1  
     II            3.2           -3.6           -6.5            0.1           -1.7           -3.0  
     I             1.2          -12.6          -13.6            9.3           11.9            8.1  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2011 I             2.6 r          2.5 r         -0.1            2.3            0.1           -0.3 r

2010 ANNUAL        3.6            3.7            0.1            0.9           -0.7           -2.6  

2010 IV            2.9            3.5 r          0.6            1.0 r         -0.2 r         -1.8 r
     III           3.4            4.5            1.1            1.0           -0.2           -2.3  
     II            3.5            4.4            0.8            0.6           -1.2           -2.8  
     I             4.6            2.4           -2.1            1.1           -1.3           -3.4  

2009 ANNUAL        1.3           -7.5           -8.7            5.2            5.6            3.9  

2009 IV            4.0           -2.3           -6.0            4.1            2.6            0.1  
     III           3.3           -6.8           -9.8            5.3            7.0            1.9  
     II           -0.1          -10.0           -9.9            5.5            6.5            5.6  
     I            -1.8          -10.4           -8.8            6.0            6.2            7.9  
---------------------------------------------------------------------------------------------------
                                         Indexes 2005=100

2011 I           109.8 r         95.1 r         86.6 r        117.5 r        103.2 r        107.0 r

2010 ANNUAL      107.6 r         93.9 r         87.2          115.6 r        103.5 r        107.4 r

2010 IV          109.1 r         94.8 r         86.9          116.9 r        104.0 r        107.1 r
     III         107.7           94.3           87.6          116.1          104.0          107.8  
     II          106.6           93.7           87.9          114.4          102.8          107.3  
     I           107.0           92.8           86.7          114.9          103.1          107.3  

2009 ANNUAL      103.9           90.5           87.2          114.5          104.2          110.2  

2009 IV          106.0           91.5           86.3          115.8          104.2          109.2  
     III         104.2           90.3           86.6          114.9          104.2          110.3  
     II          103.0           89.8           87.1          113.7          104.0          110.3  
     I           102.2           90.6           88.6          113.6          104.4          111.2  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                       June 2, 2011
r=revised                                                        Source: Bureau of Labor Statistics

Table 6. Nonfinancial corporate sector: Productivity, hourly compensation, unit labor costs, unit profits,
and prices, seasonally adjusted
                                                     Real               Unit
              Output                       Hourly    hourly             non-      Total   Unit   Implicit
 Year         per all-                     compen-   compen-   Unit     labor     unit    pro-   price
 and          employee          Employee   sation    sation    labor    costs     cost    fits   deflator
 quarter      hour     Output   hours       (1)       (2)      costs     (6)      (7)     (8)      (4)
---------------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

2011 I         4.1       6.2      2.0       2.4      -2.7      -1.6     -2.7     -1.9     15.4      0.1  

2010 ANNUAL    5.6 r     5.7      0.1       2.2 r     0.5 r    -3.2     -5.3     -3.8     24.7 r   -1.0  

2010 IV        1.6 r     3.4 r    1.8       0.4 r    -2.2 r    -1.1 r    0.7 r   -0.6 r   -7.6 r   -1.5  
     III      -3.2      -1.0      2.3       3.0       1.5       6.3      2.6      5.2      1.1      4.7  
     II        0.3       4.4      4.1       2.3       2.8       2.0     -3.4      0.4     19.6      2.6  
     I         9.7      10.9      1.2       0.0      -1.2      -8.8     -8.5     -8.7     64.4     -2.2  

2009 ANNUAL    2.0      -5.8     -7.7       2.4       2.8       0.4      2.5      1.0     -2.7      0.6  

2009 IV       13.8      13.2     -0.6       2.3      -0.5     -10.2     -8.4     -9.6     37.8     -5.6  
     III       5.3       0.1     -4.9       3.7       0.1      -1.5     -8.3     -3.6     20.5     -1.5  
     II        5.0      -5.0     -9.5       7.7       5.7       2.5     -3.4      0.7    -22.0     -1.7  
     I        -3.8     -14.7    -11.3      -3.1      -0.8       0.7      7.8      2.8     -5.2      1.9  
---------------------------------------------------------------------------------------------------------
                       Percent change from corresponding quarter of previous year

2011 I         0.7       3.2      2.6       2.0      -0.2       1.3     -0.7      0.7      6.6      1.4  

2010 ANNUAL    5.6 r     5.7      0.1       2.2 r     0.5 r    -3.2     -5.3     -3.8     24.7 r   -1.0  

2010 IV        2.0 r     4.4 r    2.3       1.4 r     0.2 r    -0.6 r   -2.2 r   -1.1 r   16.4 r    0.8  
     III       4.9       6.8      1.7       1.9       0.6      -2.9     -4.5     -3.4     28.7     -0.2  
     II        7.2       7.1     -0.1       2.1       0.3      -4.8     -7.2     -5.5     34.5     -1.7  
     I         8.4       4.5     -3.6       3.4       1.0      -4.6     -7.1     -5.4     20.8     -2.8  

2009 ANNUAL    2.0      -5.8     -7.7       2.4       2.8       0.4      2.5      1.0     -2.7      0.6  

2009 IV        4.9      -2.1     -6.7       2.6       1.1      -2.2     -3.3     -2.5      5.3     -1.8  
     III       1.9      -6.9     -8.6       2.8       4.5       0.9      1.3      1.0    -13.4     -0.6  
     II        1.5      -7.2     -8.6       2.8       3.9       1.3      4.6      2.3     -3.0      1.8  
     I        -0.1      -6.9     -6.8       1.5       1.6       1.6      7.6      3.3      1.6      3.1  
---------------------------------------------------------------------------------------------------------
                                            Indexes 2005=100

2011 I       111.0     105.3     94.9     116.6     102.4     105.0    111.9    106.9    110.0    107.3  

2010 ANNUAL  110.0 r   103.0 r   93.6     115.2 r   103.2 r   104.8 r  112.4 r  106.9 r  106.4 r  106.8 r

2010 IV      109.9 r   103.8 r   94.4     115.9 r   103.1 r   105.4 r  112.7 r  107.5 r  106.2 r  107.3 r
     III     109.5     102.9     94.0     115.8     103.7     105.8    112.5    107.6    108.3    107.7  
     II      110.4     103.2     93.5     114.9     103.3     104.1    111.8    106.3    108.0    106.5  
     I       110.3     102.0     92.5     114.3     102.6     103.6    112.7    106.2    103.3    105.8  

2009 ANNUAL  104.2      97.4     93.5     112.7     102.6     108.2    118.7    111.1     85.3    107.9  

2009 IV      107.8      99.4     92.3     114.3     102.9     106.0    115.3    108.6     91.2    106.4  
     III     104.3      96.4     92.4     113.6     103.0     108.9    117.8    111.4     84.2    107.9  
     II      103.0      96.4     93.6     112.6     103.0     109.3    120.4    112.4     80.3    108.4  
     I       101.7      97.6     95.9     110.5     101.6     108.7    121.4    112.2     85.5    108.8  
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                             June 2, 2011
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 -1.6 and +1.5 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 fourth quarter of 
2010.



			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 1978-2010 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: June 02, 2011
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