Economic News Release

Productivity and Costs News Release




Internet address:    http://www.bls.gov/lpc/       USDL 08-0756
Historical, technical                              TRANSMISSION OF THIS
  information: (202) 691-5606                      MATERIAL IS EMBARGOED
Current data:  (202) 691-5200                      UNTIL 8:30 A.M. EDT,
Media contact: (202) 691-5902                      WEDNESDAY, JUNE 4, 2008.




                           PRODUCTIVITY AND COSTS
                        First Quarter 2008, Revised
         
         
   The Bureau of Labor Statistics of the U.S. Department of Labor today 
reported revised productivity data--as measured by output per hour of all 
persons--for the first quarter of 2008.  The revised seasonally adjusted 
annual rates of productivity change in the first quarter were: 

                     2.4 percent in the business sector and
                     2.6 percent in the nonfarm business sector.
      
In both sectors, the first-quarter productivity gains were greater than the 
preliminary estimates reported on May 7, due primarily to upward revisions to 
output growth.

   In manufacturing, the revised productivity changes in the first quarter 
were:
                     3.6 percent in manufacturing,
                     2.6 percent in durable goods manufacturing, and
                     5.7 percent in nondurable goods manufacturing.
       
   Manufacturing productivity growth was slower in the first quarter of 
2008 than reported on May 7 as output was revised down by more than hours.  
Output and hours in manufacturing, which includes about 12 percent of U.S. 
business-sector employment, tend to vary more from quarter to quarter than 
data for the aggregate business and nonfarm business sectors.  First-quarter 
measures are summarized in table A and appear in detail in tables 1 through 
5.  

   The data sources and methods used in the preparation of the 
manufacturing series differ from those used in preparing the business and 
nonfarm business series, and these measures are not directly comparable.  
Output measures for business and nonfarm business are based on measures of 
gross domestic product prepared by the Bureau of Economic Analysis of the 
U.S. Department of Commerce.  Quarterly output measures for manufacturing 
reflect indexes of industrial production prepared by the Board of Governors 
of the Federal Reserve System.  See Technical Notes for further information 
on data sources. 


------------------------------------------------------------------------------
Table A. Productivity and costs: Revised first-quarter 2008 measures
(Seasonally adjusted annual rates)
------------------------------------------------------------------------------
                                                               Real
                                                     Hourly    hourly    Unit
                        Produc-                      compen-   compen-   labor
Sector                  tivity    Output   Hours     sation    sation    costs
------------------------------------------------------------------------------   
                     Percent change from preceding quarter
      
Business                 2.4       0.6     -1.7       4.8        0.4       2.3   
Nonfarm business         2.6       0.7     -1.8       4.9        0.6       2.2
Manufacturing            3.6      -1.2     -4.7       7.9        3.5       4.2
  Durable                2.6      -0.9     -3.4       7.5        3.1       4.8
  Nondurable             5.7      -1.6     -6.9       8.5        4.0       2.6
------------------------------------------------------------------------------
                     Percent change from same quarter a year ago
      
Business                 3.4       2.7     -0.7       4.1       -0.1       0.7
Nonfarm business         3.3       2.7     -0.6       4.0       -0.1       0.7
Manufacturing            4.0       1.9     -2.1       3.8       -0.3      -0.2
  Durable                5.5       3.5     -1.9       3.7       -0.5      -1.8
  Nondurable             2.5       0.0     -2.4       4.2        0.0       1.6 
------------------------------------------------------------------------------ 


Business

   Business sector productivity grew 2.4 percent in the first quarter of 
2008 as output increased 0.6 percent and hours worked by all persons--
employees, proprietors, and unpaid family workers--declined 1.7 percent 
(seasonally adjusted annual rates).  When the first quarter of 2008 is 
compared with the first quarter of 2007, output per hour in the business 
sector increased 3.4 percent--the largest four-quarter gain since a 3.4 
percent increase from the second quarter of 2003 to the second quarter of 
2004 (see tables A and 1).

   Hourly compensation increased at a 4.8 percent annual rate in the first 
quarter of 2008.  This measure of compensation includes wages and salaries, 
supplements, employer contributions to employee benefit plans, and taxes.  
Real hourly compensation, which takes into account changes in consumer 
prices, rose 0.4 percent in the first quarter of 2008 following a 0.6 percent 
gain in the previous quarter.

   The change in unit labor costs approximates the change in hourly 
compensation less the change in productivity.  In the first quarter of 2008 
these costs grew at a 2.3 percent annual rate, but from the first quarter of 
2007 to the first quarter of 2008 unit labor costs rose just 0.7 percent.  
The implicit price deflator for business output, which reflects changes in 
both unit labor costs and unit nonlabor payments, grew 2.0 percent in the 
first quarter of 2008.


Nonfarm business

   During the first quarter of 2008, productivity rose 2.6 percent in the 
nonfarm business sector; output increased 0.7 percent and hours of all 
persons fell 1.8 percent (seasonally-adjusted annual rates).  From the first 
quarter of 2007 to the first quarter of 2008, output per hour in the nonfarm 
business sector increased 3.3 percent, the largest four-quarter change since 
a 3.8 percent increase from the second quarter of 2003 to the second quarter 
of 2004.  Nonfarm business productivity had increased at an average annual 
rate of 2.7 percent from 2000 through 2006.

   Hourly compensation increased 4.9 percent in the nonfarm business sector 
in the first quarter of 2008.  The measure increased 6.6 percent in the 
fourth quarter, as revised.  When hourly compensation is adjusted for the 
rise in consumer prices, real hourly compensation grew 1.5 percent in the 
fourth quarter of 2007 and 0.6 percent in the first quarter of 2008.

   Unit labor costs rose 2.2 percent in the first quarter of 2008.  As in 
the business sector, the percent change from the same quarter a year ago was 
0.7 percent.  The implicit price deflator for nonfarm business output 
increased by 2.3 percent in the first quarter of 2008.


Manufacturing

   Productivity grew at a 3.6 percent annual rate in the manufacturing 
sector during the first quarter of 2008, reflecting a 1.2 percent decrease in 
output and a 4.7 percent decrease in hours (table A). This was the largest 
decline in hours since a 6.3 percent drop in the third quarter of 2003.   
Output per hour rose at the highest rate in three years, 5.7 percent, in 
nondurable goods industries during the first quarter; hours fell by 6.9 
percent and output declined 1.6 percent (tables 3, 4, and 5).  Total 
manufacturing productivity grew 4.0 percent from the first quarter of 2007 to 
the first quarter of 2008, similar to the 3.8 percent average annual increase 
from 2000 to 2006.

   Hourly compensation in manufacturing grew 7.9 percent during the first 
quarter of 2008.  Real hourly compensation, which takes into account changes 
in consumer prices, increased 3.5 percent for all manufacturing workers, as a 
3.1 percent rise in durable manufacturing real hourly compensation combined 
with a 4.0 percent rise in the nondurable goods industries.

   Unit labor costs rose 4.2 percent in manufacturing during the first 
quarter of 2008, as hourly compensation increased faster than productivity in 
both subsectors.  However, over the past four quarters total manufacturing 
unit labor costs edged down 0.2 percent, as durable goods unit labor costs 
declined 1.8 percent and nondurable goods unit labor costs rose 1.6 percent.  


Nonfinancial corporations

   Preliminary first-quarter 2008 measures of productivity and costs for 
nonfinancial corporations also were announced today (tables B and 6).  
Productivity rose 4.6 percent in the first quarter as output rose 3.2 percent 
and employee-hours declined 1.4 percent (seasonally adjusted annual rates).  
From the first quarter of 2007 to the first quarter of 2008 productivity grew 
3.0 percent; it had grown 2.6 percent per year from 2000 to 2006.  The 
nonfinancial corporate sector includes all corporations doing business in the 
United States, except those classified as depository institutions, 
nondepository institutions, security and commodity brokers, insurance 
carriers, regulated investment offices, small business investment offices, 
and real estate investment trusts.


 ------------------------------------------------------------------------------
 Table B.  Nonfinancial corporations: Preliminary first-quarter 2008
 productivity and cost measures
 (Seasonally adjusted annual rates)
 ------------------------------------------------------------------------------
                                            Real
                                   Hourly   hourly   Unit              Implicit
          Produc-                  compen-  compen-  labor   Unit      price
 Period   tivity   Output  Hours   sation   sation   costs   profits   deflator
------------------------------------------------------------------------------
                     Percent change from preceding quarter
         
2008 I      4.6      3.2   -1.4      5.9      1.5      1.2     -1.5       0.5
------------------------------------------------------------------------------
                     Percent change from same quarter a year ago
         
2008 I      3.0      3.0    0.0      4.2      0.0      1.1     -5.5       0.1
------------------------------------------------------------------------------        
        
        
   Hourly compensation increased 5.9 percent during the first quarter of 
2008, the same as the revised fourth quarter 2007 increase.  Taking the 4.3 
percent rise in consumer prices into account, real hourly compensation 
increased 1.5 percent in the first quarter of 2008, more than the 0.8 percent 
increase one quarter earlier.  Unit labor costs in nonfinancial corporations 
rose 1.2 percent in the first quarter of 2008, and 1.1 percent over the last 
four quarters.  
        
        
REVISED MEASURES

   Previous and revised measures for the first quarter of 2008 in the 
business, nonfarm business, and manufacturing sectors are compared in table 
C. 


------------------------------------------------------------------------------
Table C. Previous and revised productivity and related measures
(Quarterly percent change at seasonally adjusted annual rate)
------------------------------------------------------------------------------
                                                                Real
                                                      Hourly    hourly    Unit
                         Produc-                      compen-   compen-   labor
 Sector                  tivity    Output   Hours     sation    sation    costs
------------------------------------------------------------------------------
                                      First quarter 2008
   
Business:                  
  Previous                 1.9       0.2    -1.6         4.2      -0.1     2.2
  Revised                  2.4       0.6    -1.7         4.8       0.4     2.3

Nonfarm business:                            
  Previous                 2.2       0.4    -1.8         4.4       0.1     2.2
  Revised                  2.6       0.7    -1.8         4.9       0.6     2.2

Manufacturing:                            
  Previous                 4.1      -0.3    -4.2         6.7       2.3     2.5
  Revised                  3.6      -1.2    -4.7         7.9       3.5     4.2

                                      Fourth quarter 2007
   
Business:                  
  Previous                 0.9       0.1    -0.7         3.7      -1.3     2.8
  Revised                  0.9       0.1    -0.7         5.6       0.6     4.7

Nonfarm business:                            
  Previous                 1.8       0.2    -1.6         4.6      -0.4     2.8
  Revised                  1.8       0.2    -1.6         6.6       1.5     4.7

Manufacturing:                            
  Previous                 4.2      -0.4    -4.4         4.3      -0.6     0.2
  Revised                  4.2      -0.4    -4.4         7.4       2.3     3.1
  
                                      Annual average 2007
   
Business:                  
  Previous                 1.9       2.3     0.4         5.0       2.1     3.1
  Revised                  1.9       2.3     0.4         5.1       2.2     3.2

Nonfarm business:                            
  Previous                 1.8       2.3     0.5         4.9       2.1     3.1
  Revised                  1.8       2.3     0.5         5.1       2.2     3.2

Manufacturing:                            
  Previous                 3.4       1.6    -1.7         5.4       2.5     1.9
  Revised                  3.4       1.6    -1.7         5.6       2.7     2.1
------------------------------------------------------------------------------  

   In the business and nonfarm business sectors, productivity was revised 
up along with output, as hours were little changed.  Upward revisions to 
hourly compensation offset those to productivity, leaving the increase in 
unit labor costs about the same as reported May 7. 

   In the manufacturing sector, productivity growth was revised down in the 
first quarter as output was revised down by more than hours.  The downward 
revision to total manufacturing productivity combined with an upward revision 
to hourly compensation to revise the increase in unit labor costs from 2.5 
percent to 4.2 percent. 

   Table C also presents preliminary and revised results for the fourth 
quarter and annual average of 2007.  Only hourly compensation and related 
measures were revised; productivity, output, and hours were not.  These 
revisions resulted from incorporation of revised data on employee 
compensation from the Bureau of Economic Analysis (BEA) of the U.S. 
Department of Commerce, released May 29.  In the fourth quarter of 2007, 
hourly compensation, real hourly compensation, and unit labor costs were 
revised up in all sectors.  Annual averages of these measures for 2007 were 
also revised up.


REVISED MEASURES: NONFINANCIAL CORPORATIONS

   Fourth quarter and annual average 2007 measures were revised for the 
nonfinancial corporate sector.  As revised, productivity increased at a 2.4 
percent annual rate in the fourth quarter of 2007, reflecting similar growth 
in output and unchanged employee-hours.  An upward revision to hourly 
compensation outpaced the revision to productivity, and as a result unit 
labor costs rose slightly faster than reported May 7.  For the year 2007, 
productivity was revised up slightly due solely to an upward revision to 
output. 


 ------------------------------------------------------------------------------
 Table D.  Nonfinancial corporations: Previous and revised productivity and 
 cost measures
 (Quarterly percent changes at seasonally adjusted annual rates)
 ------------------------------------------------------------------------------
                                            Real  
                                   Hourly   hourly   Unit              Implicit
          Produc-                  compen-  compen-  labor   Unit      price
          tivity   Output  Hours   sation   sation   costs   profits   deflator
------------------------------------------------------------------------------
                              Fourth quarter 2007
   
Previous   0.9     0.9     0.0       3.5      -1.4     2.6   -16.9       0.3
Revised    2.4     2.4     0.0       5.9       0.8     3.4   -18.2       0.3

                              Annual average 2007
            
Previous   1.4     2.1     0.7       4.7       1.8     3.2    -5.7       1.6
Revised    1.5     2.2     0.7       4.8       1.9     3.2    -5.8       1.6
------------------------------------------------------------------------------


                                 Next release date

   The next release of Productivity and Costs is scheduled for 8:30 AM EDT, 
Friday, Aug. 8, 2008.  Preliminary second-quarter measures for business, 
nonfarm business, and manufacturing will be released at that time.  The Aug. 
8 release also will incorporate the three-year revision of the National 
Income and Product Accounts.  




				TECHNICAL NOTES

Labor Hours: Hours data for the labor productivity and cost measures include 
hours for all persons working in the sector--wage and salary workers, the 
self-employed and unpaid family workers.  The primary source of hours and 
employment data is the BLS Current Employment Statistics (CES) program, which 
provides monthly survey data on the number of jobs held by wage and salary 
workers in nonfarm establishments.  The CES also provides average weekly paid 
hours of production and nonsupervisory workers in these establishments.  
Weekly paid hours are adjusted to hours at work using data from the National 
Compensation Survey (NCS).  The BLS Hours at Work survey, conducted for this 
purpose, was used for earlier years.  The Office of Productivity and 
Technology estimates average weekly hours at work for nonproduction and 
supervisory workers using information from the Current Population Survey 
(CPS), the CES, and the NCS.
      Data from the CPS are used for farm labor, nonfarm proprietors, and 
nonfarm unpaid family workers.  Estimates of labor input for government 
enterprises are derived from the CPS, the CES, and the National Income and 
Product Accounts (NIPA) prepared by the Bureau of Economic Analysis (BEA) of 
the Department of Commerce.
      The CES measures jobs, counting a person who is employed by two or more 
establishments at each place of employment. In contrast, the CPS features 
measures of employment that count each person only once and classify each 
person according to his or her primary job; hours worked at all jobs by that 
person accrue to his or her primary job.  However, the CPS also collects more 
detailed information on employment and hours worked at primary jobs and all 
other jobs, separately.  The BLS productivity measures use the more detailed 
information on employment and hours to assign all hours worked to the correct 
industrial sector and avoid duplicating hours data from the CES.

Output: Business sector output is a chain-type, current-weighted index 
constructed after excluding from gross domestic product (GDP) the following 
outputs: general government, nonprofit institutions, and private households 
(including owner-occupied housing). Corresponding exclusions also are made in 
labor inputs. Business output accounted for about 78 percent of the value of 
GDP in 2000. Nonfarm business, which also excludes farming, accounted for 
about 77 percent of GDP in 2000.
      Annual indexes for manufacturing and its durable and nondurable goods 
components are constructed by deflating current-dollar industry value of 
production data from the U.S. Bureau of the Census with deflators from the 
BLS.  These deflators are based on data from the BLS producer price program 
and other sources.  The industry shipments are aggregated using annual 
weights, and intrasector transactions are removed.  Quarterly manufacturing 
output measures are based on the index of industrial production prepared 
monthly by the Board of Governors of the Federal Reserve System, adjusted to 
be consistent with annual indexes of manufacturing sector output prepared by 
BLS.  Durables include the following 3-digit NAICS industries: wood product 
manufacturing; nonmetallic mineral product manufacturing; primary metal 
manufacturing; fabricated metal product manufacturing; machinery 
manufacturing; computer and electronic product manufacturing; electrical 
equipment and appliance manufacturing; transportation equipment 
manufacturing; furniture and related product manufacturing; and miscellaneous 
manufacturing. Nondurables include: food manufacturing; beverage and tobacco 
product manufacturing; textile mills; textile product mills; apparel 
manufacturing; leather and allied product manufacturing; paper manufacturing; 
printing and related support activities; petroleum and coal products 
manufacturing; chemical manufacturing; and plastics and rubber products 
manufacturing.
      Nonfinancial corporate output is a chain-type, current-weighted index 
calculated on the basis of the costs incurred and the incomes earned from 
production.  The output measure excludes the following outputs from GDP: 
general government; nonprofit institutions; private households; 
unincorporated business; and those corporations classified as offices of bank 
holding companies, offices of other holding companies, or offices in the 
finance and insurance sector. Nonfinancial corporations accounted for about 
54 percent of the value of GDP in 2000.
      
Productivity: These productivity measures describe the relationship between 
real output and the labor time involved in its production. They show the 
changes from period to period in the amount of goods and services produced 
per hour. Although these measures relate output to hours at work of all 
persons engaged in a sector, they do not measure the specific contribution of 
labor, capital, or any other factor of production. Rather, they reflect the 
joint effects of many influences, including changes in technology; capital 
investment; level of output; utilization of capacity, energy, and materials; 
the organization of production; managerial skill; and the characteristics and 
effort of the work force.

Labor Compensation: Estimates of labor compensation by major sector, required 
for measures of hourly compensation and unit labor costs, are based primarily 
on employee compensation data from the NIPA, prepared by the BEA.  The 
compensation of employees in general government, nonprofit institutions and 
private households are subtracted from compensation of domestic employees to 
derive employee compensation for the business sector. The labor compensation 
of proprietors cannot be explicitly identified and must be estimated.  This 
is done by assuming that proprietors have the same hourly compensation as 
employees in the same sector.  The quarterly labor productivity and cost 
measures do not contain estimates of compensation for unpaid family workers.  
        
Unit Labor Costs:  The measures of unit labor costs in this release describe 
the relationship between compensation per hour and productivity, or real 
output per hour, and can be used as an indicator of inflationary pressure on 
producers.  Increases in hourly compensation increase unit labor costs; labor 
productivity increases offset compensation increases and lower unit labor 
costs. 

Presentation of the data:  The quarterly data in this release are presented 
in three ways; as index number series where 1992=100, as percent changes from 
the corresponding quarter of the previous year, and as percent changes from 
the previous quarter presented at a compound annual rate.  Annual data are 
presented both as index number series and percent changes from the previous 
year.  
	The index numbers and rates of change reported in the productivity and 
costs news release are rounded to one decimal place.  All percent changes in 
this release and on the BLS web site are calculated using index numbers to 
three decimal places.  These index numbers are available at the BLS web site, 
http://www.bls.gov/data/home.htm, or by contacting the BLS Division of Major 
Sector Productivity.  (Telephone 202-691-5606 or email DPRWEB@BLS.GOV)
        
        Information in this release will be made available to sensory-impaired 
individuals upon request. Voice phone: 202-691-5606; Federal Relay Service 
number: 1-800-877-8339.


        









Table 1. Business sector: Productivity, hourly compensation, unit labor costs,
and prices, seasonally adjusted
                                                           Real
   Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
   and        hour of                of all    tion per    tion per    labor    labor pay-  price
   quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator (4)
---------------------------------------------------------------------------------------------------------
                                           Indexes 1992=100

2006       I     136.3      163.2     119.7     168.3       120.8      123.4       133.0      127.0
          II     136.7      164.2     120.1     168.1       119.6      123.0       136.6      128.0
         III     136.1      164.4     120.8     168.7       118.9      123.9       136.7      128.7
          IV     136.5      165.5     121.2     173.5       122.7      127.1       132.0      128.9

      ANNUAL     136.4      164.3     120.5     169.6       120.5      124.4       134.6      128.2

2007       I     136.8      165.6     121.0     176.1       123.5      128.7       132.8      130.2
          II     138.1      167.3     121.2     177.1       122.8      128.3       135.4      130.9
         III     140.3      169.7     120.9     178.7       123.1      127.4       137.1      131.0
          IV     140.6      169.7     120.7    r181.2      r123.3     r128.9      r136.3      131.7

      ANNUAL     139.0      168.1     121.0    r178.3      r123.2     r128.3      r135.4      131.0

2008       I    r141.4     r170.0    r120.2    r183.3      r123.4     r129.6      r136.8     r132.3
---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

2006       I       2.4        5.5       3.0       7.1         5.2        4.6         0.0        2.8
          II       1.0        2.5       1.5      -0.5        -3.9       -1.5        11.3        3.3
         III      -1.7        0.6       2.3       1.5        -2.4        3.2         0.4        2.1
          IV       1.2        2.6       1.4      11.9        13.6       10.6       -12.9        0.8

      ANNUAL       1.0        3.1       2.1       4.0         0.7        2.9         2.9        2.9

2007       I       0.9        0.2      -0.8       6.2         2.5        5.2         2.3        4.1
          II       3.8        4.4       0.5       2.4        -2.1       -1.4         8.2        2.2
         III       6.4        5.7      -0.7       3.7         0.9       -2.6         5.2        0.3
          IV       0.9        0.1      -0.7      r5.6        r0.6       r4.7       r-2.3        1.9

      ANNUAL       1.9        2.3       0.4      r5.1        r2.2       r3.2        r0.6        2.2

2008       I      r2.4       r0.6     r-1.7      r4.8        r0.4       r2.3        r1.5        2.0
---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

2006       I       1.5        3.8       2.3       4.2         0.5        2.7         3.8        3.1
          II       1.8        3.6       1.8       4.0         0.0        2.1         5.2        3.3
         III       0.2        2.4       2.2       2.8        -0.5        2.6         3.5        3.0
          IV       0.7        2.8       2.1       4.9         2.9        4.1        -0.7        2.2

      ANNUAL       1.0        3.1       2.1       4.0         0.7        2.9         2.9        2.9

2007       I       0.4        1.5       1.1       4.7         2.2        4.3        -0.1        2.6
          II       1.0        1.9       0.9       5.4         2.7        4.3        -0.8        2.3
         III       3.1        3.2       0.1       6.0         3.5        2.8         0.3        1.8
          IV       3.0        2.6      -0.4      r4.4        r0.4       r1.4        r3.3        2.1

      ANNUAL       1.9        2.3       0.4      r5.1        r2.2       r3.2        r0.6        2.2

2008       I      r3.4       r2.7     r-0.7      r4.1       r-0.1       r0.7        r3.1        1.6
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                       June 4, 2008
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

2006       I     135.2      163.4     120.8     167.0       119.9      123.5       134.9      127.7
          II     135.7      164.4     121.2     167.0       118.8      123.1       138.8      128.9
         III     135.1      164.7     121.9     167.6       118.1      124.0       138.6      129.4
          IV     135.6      165.7     122.2     172.5       122.0      127.2       133.4      129.5

      ANNUAL     135.4      164.5     121.5     168.5       119.7      124.5       136.4      128.9

2007       I     136.1      165.9     121.9     175.2       122.8      128.8       133.8      130.6
          II     137.0      167.6     122.4     175.8       121.9      128.4       136.4      131.3
         III     139.0      169.9     122.3     177.2       122.0      127.5       137.9      131.3
          IV     139.6      170.0     121.8    r180.1      r122.5     r129.0      r136.8      131.9

      ANNUAL     137.9      168.4     122.1    r177.1      r122.3     r128.4      r136.2      131.3

2008       I    r140.5     r170.3    r121.2    r182.3      r122.7     r129.7      r137.5     r132.6
---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

2006       I       2.2        5.7       3.4       6.9         4.9        4.5         0.6        3.0
          II       1.3        2.4       1.1       0.0        -3.5       -1.3        12.1        3.7
         III      -1.6        0.8       2.4       1.5        -2.5        3.1        -0.5        1.6
          IV       1.4        2.6       1.1      12.3        14.0       10.7       -14.2        0.3

      ANNUAL       1.0        3.2       2.2       3.9         0.6        2.9         3.1        3.0

2007       I       1.3        0.3      -0.9       6.4         2.7        5.0         1.3        3.6
          II       2.7        4.2       1.5       1.3        -3.2       -1.3         7.9        2.1
         III       6.0        5.6      -0.4       3.3         0.6       -2.5         4.5        0.1
          IV       1.8        0.2      -1.6      r6.6        r1.5       r4.7       r-3.3        1.6

      ANNUAL       1.8        2.3       0.5      r5.1        r2.2       r3.2       r-0.2        1.9

2008       I      r2.6       r0.7      -1.8      r4.9        r0.6        2.2        r2.3       r2.3
---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

2006       I       1.4        3.8       2.4       4.2         0.4        2.8         4.1        3.3
          II       1.6        3.6       2.0       3.8        -0.1        2.2         5.7        3.5
         III       0.1        2.4       2.3       2.7        -0.6        2.6         3.6        3.0
          IV       0.8        2.8       2.0       5.0         3.0        4.2        -1.0        2.2

      ANNUAL       1.0        3.2       2.2       3.9         0.6        2.9         3.1        3.0

2007       I       0.6        1.5       0.9       4.9         2.4        4.3        -0.8        2.3
          II       1.0        2.0       1.0       5.3         2.5        4.3        -1.7        1.9
         III       2.8        3.2       0.3       5.8         3.3        2.8        -0.5        1.5
          IV       2.9        2.6      -0.4      r4.4        r0.4       r1.4        r2.5        1.8

      ANNUAL       1.8        2.3       0.5      r5.1        r2.2       r3.2       r-0.2        1.9

2008       I      r3.3       r2.7      -0.6      r4.0       r-0.1       r0.7        r2.8        1.5
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                       June 4, 2008
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

2006       I            172.6        147.2         85.3        172.4          123.8          99.9
          II            172.7        147.4         85.4        170.5          121.3          98.7
         III            174.5        148.0         84.8        171.6          120.9          98.4
          IV            175.4        147.4         84.0        177.4          125.5         101.1

      ANNUAL            173.8        147.5         84.9        173.0          122.8          99.5

2007       I            177.0        147.8         83.5        181.7          127.4         102.7
          II            178.7        149.6         83.7        181.6          125.9         101.6
         III            180.6        151.2         83.7        181.9          125.2         100.7
          IV           r182.5       r151.0         82.8       r185.2         r126.0        r101.5

      ANNUAL           r179.7       r149.9         83.4       r182.6         r126.1        r101.6

2008       I           r184.1       r150.6        r81.8       r188.7         r127.0        r102.5
--------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

2006       I             -0.6          1.8          2.4          9.1            7.1           9.7
          II              0.2          0.6          0.4         -4.4           -7.7          -4.6
         III              4.3          1.6         -2.5          2.7           -1.3          -1.5
          IV              2.2         -1.7         -3.8         14.1           15.8          11.6

      ANNUAL              1.1          1.8          0.8          2.8           -0.5           1.7

2007       I              3.6          1.2         -2.3         10.3            6.4           6.4
          II              3.8          4.9          1.0         -0.4           -4.8          -4.1
         III              4.5          4.3         -0.2          0.7           -2.0          -3.6
          IV              4.2         -0.4         -4.4         r7.4           r2.3          r3.1

      ANNUAL              3.4          1.6         -1.7         r5.6           r2.7          r2.1

2008       I             r3.6        r-1.2        r-4.7         r7.9           r3.5          r4.2
--------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

2006       I              1.5          2.4          0.9          3.8            0.0           2.2
          II              0.4          2.1          1.7          1.5           -2.4           1.1
         III              0.9          2.3          1.4          0.7           -2.6          -0.2
          IV              1.5          0.6         -0.9          5.1            3.1           3.6

      ANNUAL              1.1          1.8          0.8          2.8           -0.5           1.7

2007       I              2.6          0.4         -2.1          5.4            2.9           2.8
          II              3.5          1.5         -1.9          6.5            3.7           2.9
         III              3.5          2.1         -1.3          6.0            3.6           2.4
          IV              4.0          2.5         -1.5         r4.4           r0.4          r0.4

      ANNUAL              3.4          1.6         -1.7         r5.6           r2.7          r2.1

2008       I             r4.0         r1.9        r-2.1         r3.8          r-0.3         r-0.2
--------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                June 4, 2008
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

2006       I            198.8        179.6         90.3        168.1          120.7          84.6
          II            198.9        180.5         90.7        166.1          118.2          83.5
         III            201.7        181.1         89.8        167.3          117.9          82.9
          IV            202.4        180.1         89.0        173.6          122.8          85.8

      ANNUAL            200.4        180.3         90.0        168.7          119.8          84.2

2007       I            204.4        180.3         88.2        177.6          124.5          86.9
          II            207.9        183.9         88.4        177.5          123.0          85.4
         III            210.9        186.9         88.6        177.5          122.2          84.2
          IV           r214.3       r187.0         87.3       r180.9         r123.0         r84.4

      ANNUAL           r209.4       r184.5         88.1       r178.4         r123.2         r85.2

2008       I           r215.7       r186.6        r86.5       r184.2         r124.0         r85.4
--------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

2006       I             -1.8          0.4          2.3         11.6            9.6          13.7
          II              0.3          2.1          1.8         -4.7           -8.0          -5.0
         III              5.7          1.2         -4.3          2.9           -1.1          -2.7
          IV              1.4         -2.1         -3.4         16.0           17.8          14.5

      ANNUAL              2.2          3.3          1.1          3.4            0.1           1.2

2007       I              3.9          0.4         -3.4          9.6            5.7           5.4
          II              7.1          8.2          1.0         -0.3           -4.7          -6.9
         III              6.0          6.8          0.8          0.1           -2.6          -5.6
          IV              6.6          0.3         -6.0         r7.8           r2.7          r1.1

      ANNUAL              4.5          2.3         -2.0         r5.7           r2.8          r1.2

2008       I             r2.6        r-0.9        r-3.4         r7.5           r3.1          r4.8
--------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

2006       I              3.2          4.8          1.6          4.2            0.4           1.0
          II              2.0          4.6          2.5          2.1           -1.8           0.1
         III              2.2          3.6          1.4          1.1           -2.2          -1.1
          IV              1.4          0.4         -1.0          6.2            4.1           4.7

      ANNUAL              2.2          3.3          1.1          3.4            0.1           1.2

2007       I              2.8          0.4         -2.4          5.7            3.2           2.8
          II              4.5          1.8         -2.5          6.9            4.1           2.3
         III              4.6          3.2         -1.3          6.1            3.7           1.5
          IV              5.9          3.9         -1.9         r4.2           r0.2         r-1.6

      ANNUAL              4.5          2.3         -2.0         r5.7           r2.8          r1.2

2008       I              5.5         r3.5        r-1.9         r3.7          r-0.5         r-1.8
--------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                June 4, 2008
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

2006       I            148.0        115.0         77.7        178.3          128.0         120.4
          II            148.4        114.8         77.3        176.4          125.6         118.8
         III            149.0        115.4         77.4        177.6          125.1         119.2
          IV            150.3        115.1         76.6        181.9          128.7         121.1

      ANNUAL            148.9        115.1         77.2        178.6          126.8         119.9

2007       I            151.2        115.6         76.5        187.1          131.2         123.7
          II            151.4        116.0         76.6        186.9          129.6         123.5
         III            152.7        116.4         76.3        187.8          129.3         123.0
          IV           r152.9       r116.1         75.9       r191.0         r129.9        r124.9

      ANNUAL           r152.0       r116.0         76.3       r188.2         r130.0        r123.8

2008       I           r155.0       r115.7        r74.6       r194.9         r131.2        r125.7
--------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

2006       I              1.0          3.6          2.6          4.4            2.5           3.4
          II              1.1         -0.9         -1.9         -4.2           -7.5          -5.2
         III              1.5          2.2          0.6          2.7           -1.3           1.1
          IV              3.5         -1.1         -4.4         10.2           11.9           6.5

      ANNUAL              0.2          0.3          0.1          1.5           -1.7           1.3

2007       I              2.5          2.0         -0.5         11.9            8.0           9.2
          II              0.4          1.3          0.9         -0.4           -4.8          -0.8
         III              3.5          1.6         -1.9          1.7           -1.0          -1.7
          IV             r0.6        r-1.1         -1.7         r7.1           r2.0          r6.4

      ANNUAL              2.1          0.9         -1.2         r5.4           r2.5          r3.3

2008       I             r5.7        r-1.6        r-6.9         r8.5           r4.0          r2.6
--------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

2006       I              0.2         -0.1         -0.3          2.8           -0.9           2.7
          II             -0.7         -0.6          0.1          0.1           -3.7           0.8
         III             -0.4          1.0          1.4          0.0           -3.2           0.4
          IV              1.8          0.9         -0.8          3.1            1.1           1.4

      ANNUAL              0.2          0.3          0.1          1.5           -1.7           1.3

2007       I              2.1          0.5         -1.6          4.9            2.5           2.7
          II              2.0          1.1         -0.9          6.0            3.2           3.9
         III              2.5          0.9         -1.5          5.7            3.3           3.2
          IV              1.7          0.9         -0.8         r5.0           r0.9          r3.2

      ANNUAL              2.1          0.9         -1.2         r5.4           r2.5          r3.3

2008       I             r2.5         r0.0        r-2.4         r4.2           r0.0          r1.6
--------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                June 4, 2008
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

2006       I    142.8    171.9     120.4    163.8     117.6     114.8    112.3    114.1    164.0    118.5
          II    141.9    171.5     120.9    163.9     116.7     115.5    114.2    115.2    164.8    119.6
         III    142.7    173.4     121.5    164.6     116.0     115.3    114.0    114.9    172.8    120.1
          IV    143.0    174.2     121.8    169.3     119.8     118.4    114.7    117.4    150.4    120.3

      ANNUAL    142.6    172.8     121.1    165.4     117.5     116.0    113.8    115.4    162.9    119.7

2007       I    143.5    174.6     121.7    171.4     120.2     119.5    114.9    118.2    154.7    121.5
          II    144.2    175.9     121.9    172.4     119.5     119.5    115.0    118.3    158.5    121.9
         III    145.3    177.5     122.2    173.6     119.5     119.5    114.7    118.2    154.3    121.4
          IV   r146.1   r178.5     122.2   r176.1    r119.8    r120.5   r115.1   r119.0   r146.8    121.5

      ANNUAL   r144.8   r176.6     122.0   r173.4    r119.8    r119.8   r114.9   r118.5   r153.5    121.6

2008       I    147.8    179.9     121.7    178.6     120.2     120.9    115.0    119.3    146.2    121.7
----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

2006       I      2.0      4.5       2.4      5.1       3.2       3.0     -0.1      2.2     13.7      3.5
          II     -2.5     -0.8       1.7      0.2      -3.3       2.8      7.2      3.9      1.9      3.7
         III      2.4      4.4       1.9      1.6      -2.4      -0.8     -0.9     -0.9     20.9      1.7
          IV      0.9      1.9       1.1     12.0      13.8      11.1      2.7      8.8    -42.6      0.8

      ANNUAL      0.7      3.0       2.2      3.5       0.2       2.8      1.4      2.4      5.5      2.8

2007       I      1.2      0.9      -0.3      5.1       1.4       3.8      0.5      2.9     11.8      3.9
          II      2.1      2.9       0.8      2.3      -2.3       0.2      0.5      0.3     10.4      1.4
         III      2.9      3.7       0.7      2.8       0.1      -0.1     -1.2     -0.4    -10.2     -1.6
          IV     r2.4     r2.4       0.0     r5.9      r0.8      r3.4     r1.4     r2.9   r-18.2      0.3

      ANNUAL     r1.5     r2.2       0.7     r4.8      r1.9       3.2     r1.0      2.6    r-5.8      1.6

2008       I      4.6      3.2      -1.4      5.9       1.5       1.2     -0.4      0.8     -1.5      0.5
----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

2006       I      1.3      4.0       2.6      3.7       0.0       2.4      1.1      2.0      8.4      2.8
          II      0.0      2.3       2.3      3.4      -0.5       3.5      2.9      3.3      2.5      3.2
         III      1.0      3.3       2.3      2.3      -1.0       1.3     -0.4      0.9     17.8      2.8
          IV      0.7      2.5       1.8      4.6       2.6       3.9      2.2      3.4     -5.3      2.4

      ANNUAL      0.7      3.0       2.2      3.5       0.2       2.8      1.4      2.4      5.5      2.8

2007       I      0.5      1.6       1.1      4.6       2.2       4.1      2.3      3.6     -5.7      2.5
          II      1.6      2.5       0.9      5.2       2.4       3.5      0.7      2.7     -3.8      1.9
         III      1.8      2.3       0.6      5.5       3.1       3.7      0.6      2.8    -10.7      1.1
          IV     r2.2     r2.5       0.3     r4.0      r0.0      r1.8     r0.3      1.4    r-2.4      1.0

      ANNUAL     r1.5     r2.2       0.7     r4.8      r1.9       3.2     r1.0      2.6    r-5.8      1.6

2008       I      3.0      3.0       0.0      4.2       0.0       1.1      0.1      0.9     -5.5      0.1
----------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                        June 4, 2008
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 fourth quarter of 2007.

			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 1978-2007 is based on the 
Consumer Price Index research series (CPI-U-RS).

(3)  Unit nonlabor payments include profits, consumption of fixed capital, 
taxes on production and imports less subsidies, net interest and 
miscellaneous payments, business current transfer payments, rental 
income of persons, and the current surplus of government enterprises.

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

(5)  Quarterly changes:  Percent change compounded at annual rate is 
calculated using index numbers to three decimal places.  Indexes 
published in the news release are rounded to one decimal place for 
convenience.  Annual changes:  Percent change is calculated using annual 
average indexes to three decimal places.

(6)  Unit nonlabor costs include consumption of fixed capital, taxes on 
production and imports less subsidies, net interest and miscellaneous 
payments, and business current transfer payments.

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

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




Last Modified Date: June 04, 2008
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