## Productivity and Costs News Release

Transmission of material in this release is embargoed until USDL-10-0255 8:30 a.m. (EST) Thursday, March 4, 2010 Technical information: (202) 691-5606 • dprweb@bls.gov • www.bls.gov/lpc Media contact: (202) 691-5902 • PressOffice@bls.gov PRODUCTIVITY AND COSTS Fourth Quarter and Annual Averages 2009, Revised Nonfarm business sector labor productivity increased at a 6.9 percent annual rate during the fourth quarter of 2009, the U.S. Bureau of Labor Statistics reported today. The gain in productivity reflects a 7.6 percent increase in output partially offset by a 0.6 percent increase in hours worked. (All quarterly percent changes in this release are seasonally adjusted annual rates.) From the fourth quarter of 2008 to the fourth quarter of 2009, productivity increased 5.8 percent as output declined 0.2 percent and hours fell 5.7 percent (table A). The annual measure of productivity increased 3.8 percent from 2008 to 2009 (table D). Labor productivity, or output per hour, is calculated by dividing an index of real output by an index of hours of all persons, including employees, proprietors, and unpaid family workers. Unit labor costs in nonfarm businesses fell 5.9 percent in the fourth quarter of 2009, the result of productivity increasing faster than hourly compensation. Unit labor costs decreased 4.7 percent from the same quarter a year ago, the largest four-quarter decline since the series began in 1948 (table A). The annual average index of unit labor costs declined 1.7 percent from 2008 to 2009, the largest decline in that series (table D). 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. ============================================================================== Data in this release reflect annual benchmark revision of BLS Current Employment Statistics program data on nonfarm employee hours, and revised seasonal adjustment of those data. Also, hours of other nonfarm and farm workers based on the BLS Current Population Survey incorporate new seasonal adjustment factors. More detail can be found in tables 1 through 6 and appendix tables 1 through 6. See Revised measures. ============================================================================== Manufacturing sector productivity rose 6.6 percent in the fourth quarter of 2009, as output increased 5.5 percent and hours decreased 1.0 percent. Productivity grew 6.8 percent in the durable goods industries and 6.4 percent in the nondurable goods industries (table A). Over the last four quarters, manufacturing productivity increased 6.1 percent as output declined 4.6 percent and hours worked fell 10.1 percent. Unit labor costs in manufacturing declined 6.3 percent in the fourth quarter of 2009 and decreased 4.7 percent over the last four quarters. The data sources and methods used in the preparation of the manufacturing output series differ from those used in preparing the business and nonfarm business output series, and these measures are not directly comparable. See Technical Notes for further information on data sources. Revised measures Quarterly and annual measures for all sectors were revised back to 2005 to incorporate the annual benchmark adjustment and updated information on seasonal trends from the BLS nonfarm payroll series. Hours and related measures for the business and nonfarm business sectors were revised to incorporate updated information on seasonal trends in Current Population Survey data on hours worked. Revised and previous measures for the third and fourth quarters of 2009 are shown in table B for the business, nonfarm business and manufacturing sectors and table C for the third quarter measures for the nonfinancial corporate sector. Quarterly and annual data for all sectors appear in tables 1-6 for 2007 through 2009, and in appendix tables 1-6 for 2005 and 2006. Full historical annual and quarterly measures can be found on the labor productivity and costs home page http://www.bls.gov/lpc/#data. In the fourth quarter of 2009, nonfarm business productivity growth was revised up to 6.9 percent from the estimate of 6.2 percent published on February 4, 2010. The larger productivity gain reflects a 0.4 percentage point upward revision to output and a similar downward revision to hours. Unit labor costs for nonfarm business fell 5.9 percent--more than previously reported. In manufacturing, productivity was revised down from 7.8 percent to 6.6 percent due to a downward revision to output and a smaller decline in hours than in the preliminary estimate. In the third quarter of 2009, nonfarm business productivity was revised up to 7.8 percent from 7.2 percent when hours were revised downward and output was not revised. A large downward revision to unit labor costs was due more to the large downward revision in hourly compensation than the small upward revision in output per hour. In manufacturing, productivity was revised up slightly. As in the nonfarm business sector, there were large downward revisions to hourly compensation and unit labor costs. Productivity in nonfinancial corporations was revised down for the third quarter, as output was revised down much more than hours (table C). Table D presents Annual Averages for the most recent five years. In the nonfarm business sector, productivity increased 3.8 percent in 2009, and reflected the largest annual declines in output and hours (-3.6 percent and -7.1 percent, respectively) for these measures, which begin in 1948. Unit labor costs fell over the year, by 1.7 percent, as hourly compensation grew less than productivity. Over the long run, from 2000 to 2009, nonfarm business productivity increased at an average annual rate of 2.7 percent. Manufacturing sector productivity grew 1.8 percent in 2009, due to a slightly larger decline in hours (-12.6 percent) than in output (-11.1 percent). These were the largest annual declines in the output and hours series, which begin in 1988. Unit labor costs in manufacturing increased 2.6 percent in 2009, in contrast to the decline in the nonfarm business sector. Manufacturing productivity increased at an average annual rate of 3.2 percent from 2000 to 2009. ___________ The preliminary Productivity and Costs press release for first-quarter 2010 is scheduled to be released on Thursday, May 6, 2010 at 8:30 a.m. (EDT). ====================================================================================================== Table A. Revised fourth-quarter 2009 measures: percent change from previous quarter at annual rate (Q to Q) and from same quarter a year ago (Y to Y) Sector Nonfarm Durable Nondurable Business Business Manufacturing Manufacturing Manufacturing Q to Q Y to Y Q to Q Y to Y Q to Q Y to Y Q to Q Y to Y Q to Q Y to Y ------------------------------------------------------------------------------------------------------ Productivity 6.9 5.8 7.2 5.9 6.6 6.1 6.8 4.8 6.4 5.1 Output 7.6 -0.2 7.5 -0.2 5.5 -4.6 5.7 -8.7 5.4 -0.7 Hours 0.6 -5.7 0.3 -5.7 -1.0 -10.1 -1.0 -12.8 -0.9 -5.5 Hourly compensation 0.6 0.8 0.6 0.9 -0.1 1.1 0.6 2.1 -1.4 -0.1 Real hourly compensation -2.8 -0.6 -2.7 -0.6 -3.5 -0.4 -2.8 0.6 -4.7 -1.5 Unit labor costs -5.9 -4.7 -6.2 -4.7 -6.3 -4.7 -5.8 -2.6 -7.3 -4.9 ====================================================================================================== ====================================================================================================== Table B. Revised and previous measures for: fourth quarter and third quarter 2009 Sector Nonfarm Durable Nondurable Business Business Manufacturing Manufacturing Manufacturing Revised Previous Revised Previous Revised Previous Revised Previous Revised Previous ------------------------------------------------------------------------------------------------------ Percent change annual rate, fourth quarter 2009 Productivity 6.9 6.2 7.2 6.5 6.6 7.8 6.8 6.2 6.4 9.8 Output 7.6 7.2 7.5 7.2 5.5 6.1 5.7 5.0 5.4 7.2 Hours 0.6 1.0 0.3 0.6 -1.0 -1.6 -1.0 -1.1 -0.9 -2.4 Hourly compensation 0.6 1.5 0.6 1.6 -0.1 -0.2 0.6 -0.6 -1.4 0.5 Real hourly compensation -2.8 -1.9 -2.7 -1.8 -3.5 -3.5 -2.8 -3.9 -4.7 -2.8 Unit labor costs -5.9 -4.4 -6.2 -4.7 -6.3 -7.4 -5.8 -6.4 -7.3 -8.5 ------------------------------------------------------------------------------------------------------ Percent change annual rate, third quarter 2009 Productivity 7.8 7.2 8.0 7.4 14.8 14.4 23.0 21.9 6.2 6.5 Output 2.2 2.2 2.2 2.2 9.0 9.5 14.6 14.9 3.9 4.7 Hours -5.3 -4.7 -5.3 -4.8 -5.1 -4.2 -6.8 -5.8 -2.2 -1.7 Hourly compensation -0.4 5.5 0.0 5.9 -1.0 6.4 -2.9 7.1 3.2 5.5 Real hourly compensation -3.8 1.9 -3.5 2.2 -4.4 2.7 -6.3 3.4 -0.4 1.8 Unit labor costs -7.6 -1.5 -7.4 -1.4 -13.7 -7.0 -21.1 -12.2 -2.9 -1.0 ====================================================================================================== Table C. Nonfinancial corporations: revised third-quarter 2009 productivity and cost measures Real Hourly hourly Unit Implicit Produc- compen- compen- labor Unit price tivity Output Hours sation sation costs profits deflator ------------------------------------------------------------------------------------------------------ Percent change, annual rate Revised 3.9 -1.7 -5.4 1.0 -2.5 -2.8 19.9 -1.8 Previous 6.3 1.4 -4.6 5.3 1.6 -1.0 16.2 -1.8 ====================================================================================================== Table D. Annual average changes in productivity and related measures, 2005-2009 Sector Nonfarm Business Manufacturing 2005 2006 2007 2008 2009 | 2005 2006 2007 2008 2009 --------------------------------------------------------------|---------------------------------------- Productivity 1.7 1.0 1.8 2.0 3.8 | 4.8 1.1 3.1 1.0 1.8 Output 3.4 3.1 2.3 -0.1 -3.6 | 3.7 1.8 1.3 -3.1 -11.1 Hours 1.7 2.1 0.5 -2.1 -7.1 | -1.1 0.8 -1.7 -4.0 -12.6 Hourly | compensation 4.0 3.8 4.2 3.0 2.0 | 3.3 2.0 4.3 3.1 4.4 Real hourly | compensation 0.6 0.5 1.3 -0.8 2.3 | 0.0 -1.2 1.4 -0.7 4.8 Unit labor | costs 2.3 2.8 2.3 1.0 -1.7 | -1.4 0.9 1.1 2.1 2.6 ======================================================================================================

TECHNICAL NOTES Labor Hours: Hours data for the labor productivity and cost measures include hours for all persons working in the sector—wage and salary workers, the self-employed and unpaid family workers. The primary source of hours and employment data is the BLS Current Employment Statistics (CES) program, which provides monthly survey data on the number of jobs held by wage and salary workers in nonfarm establishments. The CES also provides average weekly paid hours of production and nonsupervisory workers in these establishments. Weekly paid hours are adjusted to hours at work using data from the National Compensation Survey (NCS). The BLS Hours at Work survey, conducted for this purpose, was used for earlier years. The Office of Productivity and Technology estimates average weekly hours at work for nonproduction and supervisory workers using information from the Current Population Survey (CPS), the CES, and the NCS. Data from the CPS are used for farm labor, nonfarm proprietors, and nonfarm unpaid family workers. Estimates of labor input for government enterprises are derived from the CPS, the CES, and the National Income and Product Accounts (NIPA) prepared by the Bureau of Economic Analysis (BEA) of the Department of Commerce. The CES measures jobs, counting a person who is employed by two or more establishments at each place of employment. In contrast, the CPS features measures of employment that count each person only once and classify each person according to his or her primary job; hours worked at all jobs by that person accrue to his or her primary job. However, the CPS also collects more detailed information on employment and hours worked at primary jobs and all other jobs, separately. The BLS productivity measures use the more detailed information on employment and hours to assign all hours worked to the correct industrial sector and avoid duplicating hours data from the CES. Output: Business sector output is a chain-type, current-weighted index constructed after excluding from gross domestic product (GDP) the following outputs: general government, nonprofit institutions, and private households (including owner-occupied housing). Corresponding exclusions also are made in labor inputs. Business output accounted for about 77 percent of the value of GDP in 2005. Nonfarm business, which excludes farming, accounted for about 76 percent of GDP in 2005. Annual indexes for manufacturing and its durable and nondurable goods components are constructed by deflating current-dollar industry value of production data from the U.S. Bureau of the Census with deflators from the BLS. These deflators are based on data from the BLS producer price program and other sources. The industry shipments are aggregated using annual weights, and intrasector transactions are removed. Quarterly manufacturing output measures are based on the index of industrial production prepared monthly by the Board of Governors of the Federal Reserve System, adjusted to be consistent with annual indexes of manufacturing sector output prepared by BLS. Durables include the following 3-digit NAICS industries: wood product manufacturing; nonmetallic mineral product manufacturing; primary metal manufacturing; fabricated metal product manufacturing; machinery manufacturing; computer and electronic product manufacturing; electrical equipment and appliance manufacturing; transportation equipment manufacturing; furniture and related product manufacturing; and miscellaneous manufacturing. Nondurables include: food manufacturing; beverage and tobacco product manufacturing; textile mills; textile product mills; apparel manufacturing; leather and allied product manufacturing; paper manufacturing; printing and related support activities; petroleum and coal products manufacturing; chemical manufacturing; and plastics and rubber products manufacturing. Nonfinancial corporate output is a chain-type, current-weighted index calculated on the basis of the costs incurred and the incomes earned from production. The output measure excludes the following outputs from GDP: general government; nonprofit institutions; private households; unincorporated business; and those corporations classified as offices of bank holding companies, offices of other holding companies, or offices in the finance and insurance sector. Nonfinancial corporations accounted for about 50 percent of the value of GDP in 2005. Productivity: These productivity measures describe the relationship between real output and the labor time involved in its production. They show the changes from period to period in the amount of goods and services produced per hour. Although these measures relate output to hours at work of all persons engaged in a sector, they do not measure the specific contribution of labor, capital, or any other factor of production. Rather, they reflect the joint effects of many influences, including changes in technology; capital investment; level of output; utilization of capacity, energy, and materials; the organization of production; managerial skill; and the characteristics and effort of the work force. Labor Compensation: Estimates of labor compensation by major sector, required for measures of hourly compensation and unit labor costs, are based primarily on employee compensation data from the NIPA, prepared by the BEA. The compensation of employees in general government, nonprofit institutions and private households are subtracted from compensation of domestic employees to derive employee compensation for the business sector. The labor compensation of proprietors cannot be explicitly identified and must be estimated. This is done by assuming that proprietors have the same hourly compensation as employees in the same sector. The quarterly labor productivity and cost measures do not contain estimates of compensation for unpaid family workers. Unit Labor Costs: The measures of unit labor costs in this release describe the relationship between compensation per hour and productivity, or real output per hour, and can be used as an indicator of inflationary pressure on producers. Increases in hourly compensation increase unit labor costs; labor productivity increases offset compensation increases and lower unit labor costs. Presentation of the data: The quarterly data in this release are presented in three ways; as index number series where 1992=100, as percent changes from the corresponding quarter of the previous year, and as percent changes from the previous quarter presented at a compound annual rate. Annual data are presented both as index number series and percent changes from the previous year. The index numbers and rates of change reported in the productivity and costs news release are rounded to one decimal place. All percent changes in this release and on the BLS web site are calculated using index numbers to three decimal places. Revision marks in this release are based on revisions to three decimal places. These index numbers are available at the BLS web site, http://www.bls.gov/data/home.htm, or by contacting the BLS Division of Major Sector Productivity. (Telephone 202-691-5606 or email DPRWEB@BLS.GOV) Information in this release will be made available to sensory- impaired individuals upon request. Voice phone: 202-691-5606; Federal Relay Service number: 1-800-877-8339.

Table 1. Business sector: Productivity, hourly compensation, unit labor costs, and prices, seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit Unit non- Implicit and hour of of all tion per tion per labor labor pay- price quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4) --------------------------------------------------------------------------------------------------------- Indexes 1992=100 2007 I r139.0 168.4 r121.1 r175.2 r122.7 r126.0 r136.7 130.0 II r140.0 169.8 r121.3 r176.3 r122.2 r125.9 r139.4 130.9 III r142.0 171.4 r120.7 r177.7 r122.5 r125.1 r141.9 131.4 IV r142.8 172.3 r120.6 r179.9 r122.3 r126.0 r141.9 131.9 ANNUAL r141.0 170.5 r120.9 r177.3 r122.4 r125.7 r140.0 131.0 2008 I r142.8 171.7 r120.3 r180.3 r121.2 r126.3 r141.7 132.1 II r143.8 172.2 r119.8 r181.0 r120.3 r125.8 r143.8 132.5 III r144.3 170.6 r118.2 r183.6 r120.3 r127.2 r145.3 134.0 IV r145.0 167.4 r115.4 r185.4 r124.1 r127.8 r143.4 133.6 ANNUAL r144.0 170.5 r118.4 r182.5 r121.4 r126.8 r143.6 133.0 2009 I r145.3 163.6 r112.6 r183.5 r123.6 r126.2 r148.0 134.3 II r148.0 163.2 r110.3 r186.8 r125.4 r126.2 r147.7 134.2 III r150.9 164.1 r108.7 r186.8 r124.3 r123.8 r151.9 134.3 IV r153.6 r167.1 r108.8 r187.1 r123.4 r121.8 r155.3 r134.3 ANNUAL r149.4 r164.5 r110.1 r186.0 r124.2 r124.5 r150.8 r134.3 --------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2007 I r0.7 0.8 r0.1 r4.1 r0.3 r3.4 r5.0 4.0 II r2.9 3.5 r0.5 r2.4 r-1.7 r-0.5 r8.2 2.8 III r5.7 3.7 r-1.9 r3.2 r0.9 r-2.3 r7.2 1.4 IV r2.4 2.1 r-0.3 r5.1 r-0.6 r2.7 r0.0 1.6 ANNUAL 1.8 2.2 0.4 4.2 1.3 2.4 3.0 2.6 2008 I r-0.2 -1.3 r-1.1 r0.9 r-3.5 r1.1 r-0.3 0.6 II r2.9 1.1 r-1.8 r1.4 r-3.0 -1.5 r6.1 1.4 III r1.4 -3.7 r-5.0 r5.9 r-0.2 r4.5 r4.1 4.3 IV r2.1 -7.2 r-9.1 r4.1 r13.5 r1.9 r-5.2 -1.0 ANNUAL r2.1 0.0 r-2.1 r3.0 r-0.8 0.8 2.6 1.5 2009 I r0.9 -8.7 r-9.5 r-4.1 r-1.8 r-5.0 r13.4 2.1 II r7.6 -1.0 r-8.0 r7.5 r6.1 r-0.1 r-0.7 -0.3 III r8.0 2.2 r-5.3 r0.0 r-3.5 r-7.4 r11.9 0.1 IV r7.2 r7.5 r0.3 r0.6 r-2.7 r-6.2 r9.3 r0.1 ANNUAL r3.8 -3.5 r-7.0 r1.9 2.3 r-1.8 r5.0 r0.9 --------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2007 I 0.3 1.5 1.1 4.0 1.6 3.7 1.6 2.9 II 1.0 2.0 r1.0 r4.3 r1.6 3.3 1.9 2.8 III r2.9 3.0 r0.1 r4.7 2.4 1.7 3.3 2.4 IV 2.9 2.5 r-0.4 3.7 -0.3 0.8 r5.0 2.5 ANNUAL 1.8 2.2 0.4 4.2 1.3 2.4 3.0 2.6 2008 I 2.7 2.0 -0.7 2.9 -1.2 0.2 3.7 1.6 II r2.7 1.4 r-1.3 r2.7 r-1.6 0.0 3.2 1.2 III r1.6 -0.5 r-2.1 r3.3 r-1.8 r1.7 r2.4 2.0 IV r1.5 -2.8 r-4.3 r3.0 r1.5 r1.5 r1.1 1.3 ANNUAL r2.1 0.0 r-2.1 r3.0 r-0.8 0.8 2.6 1.5 2009 I r1.8 -4.7 r-6.4 r1.7 r1.9 r-0.1 r4.4 1.7 II r3.0 -5.2 r-7.9 r3.3 r4.2 r0.3 r2.7 1.3 III r4.6 -3.8 r-8.0 r1.8 r3.4 r-2.7 r4.6 0.2 IV r5.9 -0.2 r-5.7 r0.9 r-0.6 r-4.7 r8.3 r0.5 ANNUAL r3.8 -3.5 r-7.0 r1.9 2.3 r-1.8 r5.0 r0.9 --------------------------------------------------------------------------------------------------------- See footnotes following Table 6. March 4, 2010 r=revised Source: Bureau of Labor Statistics

Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs, and prices, seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit Unit non- Implicit and hour of of all tion per tion per labor labor pay- price quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4) --------------------------------------------------------------------------------------------------------- Indexes 1992=100 2007 I r138.3 168.8 r122.1 r174.3 r122.1 r126.0 r138.2 130.5 II r139.0 170.3 r122.5 r174.9 r121.3 r125.8 r141.0 131.4 III r141.0 172.0 r122.0 r176.2 r121.5 r125.0 r143.3 131.7 IV r142.0 172.8 r121.7 r178.8 r121.5 r125.9 r142.9 132.2 ANNUAL r140.1 171.0 r122.1 r176.1 r121.6 r125.7 r141.4 131.5 2008 I r141.8 172.0 r121.3 r179.3 r120.5 r126.4 r142.5 132.3 II r142.8 172.6 r120.8 r179.7 r119.5 r125.9 r144.9 132.9 III r143.2 170.8 r119.3 r182.4 r119.5 r127.4 r146.5 134.4 IV r144.0 167.5 r116.3 r184.4 r123.5 r128.1 r145.1 134.3 ANNUAL r142.9 170.7 r119.4 r181.4 r120.7 r126.9 r144.7 133.5 2009 I r144.3 163.7 r113.4 r182.5 r122.9 r126.4 r150.3 135.2 II r147.0 163.2 r111.1 r185.9 r124.8 r126.4 r150.0 135.1 III r149.8 164.1 r109.6 r185.7 r123.6 r124.0 r154.6 135.2 IV r152.3 r167.2 r109.7 r186.0 r122.7 r122.1 r157.5 r135.1 ANNUAL r148.3 r164.6 r110.9 r185.0 r123.5 r124.7 r153.2 r135.2 --------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2007 I r0.9 0.9 r0.0 r4.3 r0.4 r3.4 r4.1 3.6 II r2.2 3.7 r1.5 r1.4 r-2.7 r-0.8 r8.3 2.7 III r5.7 3.9 r-1.6 r3.0 r0.6 r-2.5 r6.8 1.1 IV r2.9 1.8 r-1.0 r6.0 r0.2 r3.1 r-1.0 1.4 ANNUAL 1.8 2.3 0.5 4.2 1.3 2.3 2.4 2.3 2008 I r-0.5 -1.7 r-1.2 r1.1 r-3.3 r1.6 r-1.3 0.5 II r3.0 1.3 r-1.6 r1.1 r-3.3 r-1.9 r7.1 1.6 III r1.1 -4.0 r-5.0 r6.0 r-0.1 r4.9 r4.2 4.6 IV r2.2 -7.6 r-9.6 r4.5 r14.0 r2.2 r-3.7 -0.2 ANNUAL r2.0 -0.1 r-2.1 r3.0 r-0.8 1.0 2.4 1.5 2009 I r0.9 -8.8 r-9.6 r-4.2 r-1.9 -5.0 r15.3 2.7 II r7.6 -1.1 r-8.1 r7.7 r6.3 r0.1 r-0.9 -0.3 III r7.8 2.2 r-5.3 r-0.4 r-3.8 r-7.6 r13.0 0.4 IV r6.9 r7.6 r0.6 r0.6 r-2.8 r-5.9 r7.7 r-0.4 ANNUAL r3.8 -3.6 r-7.1 2.0 r2.3 r-1.7 r5.8 1.3 --------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2007 I r0.6 1.5 0.9 4.3 1.8 3.7 1.0 2.7 II r1.0 2.1 1.1 r4.2 r1.5 3.1 r1.4 2.4 III 2.9 3.2 r0.3 r4.5 2.2 1.6 2.8 2.1 IV r2.9 2.6 -0.3 3.6 -0.4 0.7 4.5 2.2 ANNUAL 1.8 2.3 0.5 4.2 1.3 2.3 2.4 2.3 2008 I 2.5 1.9 -0.6 r2.8 -1.3 0.3 3.1 1.4 II r2.7 1.3 r-1.4 r2.8 r-1.4 0.1 2.8 1.1 III r1.6 -0.7 r-2.2 r3.5 r-1.6 1.9 r2.2 2.0 IV r1.4 -3.0 r-4.4 r3.1 r1.6 r1.7 r1.5 1.6 ANNUAL r2.0 -0.1 r-2.1 r3.0 r-0.8 1.0 2.4 1.5 2009 I r1.8 -4.8 r-6.5 r1.8 r2.0 r0.0 r5.5 2.2 II r2.9 -5.4 r-8.1 r3.4 r4.4 r0.5 r3.5 1.7 III r4.6 -3.9 r-8.2 r1.8 r3.4 r-2.7 r5.6 0.6 IV r5.8 r-0.2 r-5.7 r0.8 r-0.6 r-4.7 r8.6 r0.6 ANNUAL r3.8 -3.6 r-7.1 2.0 r2.3 r-1.7 r5.8 1.3 --------------------------------------------------------------------------------------------------------- See footnotes following Table 6. March 4, 2010 r=revised Source: Bureau of Labor Statistics

Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs, seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit and hour of of all tion per tion per labor quarter all persons Output persons hour (1) hour (2) costs -------------------------------------------------------------------------------------------------- Indexes 1992=100 2007 I r176.8 148.0 r83.7 r172.7 r121.0 r97.7 II r177.6 149.3 r84.1 r172.2 r119.4 r97.0 III r180.1 150.3 r83.4 r172.9 r119.2 96.0 IV r182.3 150.4 r82.5 r176.3 r119.9 r96.7 ANNUAL r179.2 149.5 r83.4 r173.5 r119.9 96.9 2008 I r182.7 149.9 r82.1 r175.6 r118.0 r96.1 II r180.9 148.0 r81.8 r176.1 r117.1 r97.4 III r180.7 144.4 r79.9 r179.2 r117.4 r99.2 IV r179.5 137.2 r76.5 r185.4 r124.1 r103.3 ANNUAL r181.0 144.9 r80.1 r179.0 r119.0 r98.9 2009 I r178.2 129.1 r72.4 r185.0 r124.6 r103.8 II r181.1 126.4 r69.8 r187.8 r126.1 r103.7 III r187.4 r129.1 r68.9 r187.4 r124.7 r100.0 IV r190.4 r130.9 r68.7 r187.3 r123.6 r98.4 ANNUAL r184.2 r128.9 r70.0 r186.9 r124.7 r101.5 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2007 I r2.4 1.8 r-0.6 r6.8 r2.9 4.3 II r1.9 3.4 r1.5 r-1.2 r-5.1 -3.0 III r5.7 2.7 r-2.9 r1.5 r-0.9 r-4.0 IV r5.0 0.3 r-4.5 r8.3 r2.4 3.1 ANNUAL r3.1 1.3 r-1.7 4.3 1.4 1.1 2008 I r0.8 -1.2 r-2.0 r-1.7 r-6.0 -2.5 II r-3.9 -5.2 r-1.4 r1.3 r-3.0 r5.3 III r-0.3 -9.3 r-9.0 r7.2 r1.0 r7.6 IV r-2.7 -18.4 r-16.1 r14.3 r24.8 17.5 ANNUAL r1.0 -3.1 r-4.0 r3.1 r-0.7 2.1 2009 I r-2.9 -21.7 r-19.4 r-0.8 r1.6 r2.1 II r6.6 -8.1 r-13.8 r6.3 r4.9 -0.2 III r14.8 r9.0 r-5.1 r-1.0 r-4.4 r-13.7 IV r6.6 r5.5 r-1.0 r-0.1 -3.5 r-6.3 ANNUAL r1.8 r-11.1 r-12.6 r4.4 r4.8 r2.6 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2007 I 2.5 0.4 -2.0 4.3 r1.8 1.8 II r3.0 1.3 r-1.7 r4.6 r1.9 1.5 III r3.2 1.6 -1.6 r4.4 2.1 1.2 IV r3.7 2.0 r-1.6 r3.8 r-0.2 0.0 ANNUAL r3.1 1.3 r-1.7 4.3 1.4 1.1 2008 I r3.4 1.3 -2.0 1.6 -2.5 -1.7 II 1.9 -0.9 -2.7 2.3 -1.9 0.4 III r0.4 -3.9 r-4.3 r3.7 r-1.5 3.3 IV r-1.5 -8.7 r-7.3 r5.1 r3.5 6.7 ANNUAL r1.0 -3.1 r-4.0 r3.1 r-0.7 2.1 2009 I r-2.4 -13.9 r-11.7 r5.4 r5.6 8.0 II r0.1 -14.6 r-14.7 r6.6 r7.7 6.5 III r3.7 r-10.6 r-13.8 r4.6 r6.2 r0.8 IV r6.1 r-4.6 r-10.1 r1.1 r-0.4 r-4.7 ANNUAL r1.8 r-11.1 r-12.6 r4.4 r4.8 r2.6 -------------------------------------------------------------------------------------------------- See footnotes following Table 6. March 4, 2010 r=revised Source: Bureau of Labor Statistics

Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs, seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit and hour of of all tion per tion per labor quarter all persons Output persons hour (1) hour (2) costs -------------------------------------------------------------------------------------------------- Indexes 1992=100 2007 I r203.9 180.4 r88.5 r167.9 r117.6 r82.3 II r206.0 183.0 r88.8 r166.6 r115.5 r80.9 III r209.7 185.0 r88.2 r167.5 r115.4 r79.9 IV r214.0 185.7 r86.8 r170.9 r116.2 r79.9 ANNUAL r208.4 183.5 r88.1 r168.2 r116.2 80.7 2008 I r213.5 185.3 r86.8 r169.4 r113.9 79.4 II r209.9 181.8 r86.6 r170.2 r113.2 r81.1 III r212.7 178.1 r83.7 r174.0 r114.0 r81.8 IV r205.8 165.1 r80.2 r179.4 r120.1 r87.2 ANNUAL r210.5 177.6 r84.4 r173.1 r115.1 r82.2 2009 I r199.9 150.1 r75.1 r179.5 r120.9 r89.8 II r201.4 143.7 r71.3 r184.2 r123.7 r91.5 III r212.1 r148.6 r70.1 r182.8 r121.7 r86.2 IV r215.6 r150.7 r69.9 r183.1 r120.8 r84.9 ANNUAL r207.1 r148.3 r71.6 r182.4 r121.7 r88.1 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2007 I r2.6 1.2 r-1.4 r8.3 r4.3 5.6 II r4.1 6.0 r1.8 r-3.1 r-7.0 -6.9 III r7.4 4.4 r-2.7 r2.1 r-0.2 -4.9 IV r8.4 1.4 r-6.5 r8.6 r2.6 0.1 ANNUAL 4.0 1.8 -2.1 r4.6 1.8 0.7 2008 I r-1.0 -0.9 r0.1 r-3.6 r-7.8 r-2.6 II r-6.5 -7.3 r-0.8 r1.9 r-2.5 r9.0 III r5.5 -7.9 r-12.7 r9.4 r3.0 r3.7 IV r-12.3 -26.2 r-15.9 r13.0 r23.3 28.8 ANNUAL r1.0 -3.3 -4.2 r2.9 r-0.9 1.9 2009 I r-11.1 -31.6 r-23.0 r0.1 r2.5 12.6 II r3.0 -16.1 r-18.6 r11.0 r9.5 7.7 III r23.0 r14.6 r-6.8 r-2.9 r-6.3 r-21.1 IV r6.8 r5.7 r-1.0 r0.6 r-2.8 r-5.8 ANNUAL r-1.6 -16.5 r-15.1 r5.4 r5.7 r7.1 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2007 I 2.6 0.3 r-2.2 r4.8 r2.3 2.2 II r3.7 1.4 r-2.2 r5.0 r2.2 1.2 III r3.9 2.3 -1.6 5.0 r2.6 1.0 IV r5.6 3.2 r-2.2 r3.9 r-0.1 -1.6 ANNUAL 4.0 1.8 -2.1 r4.6 1.8 0.7 2008 I r4.7 2.7 r-1.9 0.9 -3.2 -3.6 II r1.9 -0.7 r-2.5 r2.2 r-2.0 0.3 III r1.4 -3.7 r-5.1 r3.9 r-1.2 2.5 IV r-3.8 -11.1 r-7.6 r5.0 r3.4 9.1 ANNUAL r1.0 -3.3 -4.2 r2.9 r-0.9 1.9 2009 I r-6.4 -19.0 r-13.5 r6.0 r6.2 r13.2 II r-4.1 -21.0 r-17.6 r8.2 r9.3 12.8 III r-0.3 -16.5 r-16.3 r5.1 r6.7 r5.4 IV r4.8 r-8.7 -12.8 r2.1 r0.6 r-2.6 ANNUAL r-1.6 -16.5 r-15.1 r5.4 r5.7 r7.1 -------------------------------------------------------------------------------------------------- See footnotes following Table 6. March 4, 2010 r=revised Source: Bureau of Labor Statistics

Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs, seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit and hour of of all tion per tion per labor quarter all persons Output persons hour (1) hour (2) costs -------------------------------------------------------------------------------------------------- Indexes 1992=100 2007 I r151.2 115.9 r76.6 r179.6 r125.8 r118.8 II r151.1 116.0 r76.8 r180.8 r125.4 r119.7 III r152.6 116.3 r76.2 r180.8 r124.7 r118.5 IV r152.6 116.0 r76.0 r184.4 r125.4 r120.8 ANNUAL r151.9 116.1 r76.4 r181.4 r125.3 119.5 2008 I r154.3 115.6 r74.9 r185.2 r124.5 r120.0 II r154.0 114.8 r74.5 r185.2 r123.1 r120.2 III r150.7 111.6 r74.1 r187.0 r122.5 r124.1 IV r153.6 108.7 r70.8 r194.5 r130.2 r126.6 ANNUAL r153.1 112.7 r73.6 r187.9 r124.9 r122.7 2009 I r154.4 105.6 r68.4 r193.7 r130.5 r125.5 II r156.5 105.6 r67.5 r193.5 r129.9 r123.6 III r158.9 r106.6 r67.1 r195.0 r129.8 r122.7 IV r161.4 r108.0 r66.9 r194.3 r128.2 r120.4 ANNUAL r157.8 r106.5 r67.5 r194.1 r129.6 r123.0 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2007 I r1.6 2.4 r0.8 r4.0 r0.2 2.4 II r-0.3 0.7 r1.0 r2.6 r-1.5 3.0 III r4.1 0.8 r-3.2 r0.1 r-2.2 r-3.8 IV r0.1 -0.9 r-1.0 r8.2 r2.3 r8.1 ANNUAL 2.0 0.9 -1.1 3.6 r0.7 1.6 2008 I r4.4 -1.4 r-5.5 r1.6 r-2.9 -2.7 II r-0.6 -2.8 r-2.3 r0.0 r-4.3 0.6 III r-8.5 -10.6 r-2.3 r4.1 r-1.9 r13.8 IV r8.0 -9.9 r-16.6 r16.9 r27.6 r8.3 ANNUAL r0.8 -2.9 r-3.7 r3.6 r-0.3 2.7 2009 I r2.1 -11.1 r-12.9 r-1.6 r0.8 -3.6 II r5.7 0.0 r-5.4 r-0.4 r-1.7 -5.8 III r6.2 r3.9 r-2.2 r3.2 r-0.4 r-2.9 IV r6.4 r5.4 r-0.9 r-1.4 r-4.7 r-7.3 ANNUAL r3.0 r-5.5 r-8.3 r3.3 r3.7 r0.3 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2007 I r2.2 0.7 r-1.5 r3.3 0.9 1.1 II r1.9 1.2 r-0.8 r4.0 r1.3 2.0 III r2.4 0.9 r-1.5 3.4 r1.0 0.9 IV r1.4 0.8 r-0.6 3.7 r-0.3 2.3 ANNUAL 2.0 0.9 -1.1 3.6 r0.7 1.6 2008 I 2.0 -0.2 -2.2 3.1 -1.1 1.0 II r2.0 -1.1 r-3.0 r2.4 r-1.8 0.4 III r-1.3 -4.0 r-2.8 r3.4 r-1.7 4.7 IV r0.6 -6.3 r-6.9 r5.4 r3.9 4.8 ANNUAL r0.8 -2.9 r-3.7 r3.6 r-0.3 2.7 2009 I r0.1 -8.7 r-8.7 r4.6 r4.8 4.5 II r1.6 -8.0 r-9.5 r4.5 r5.5 2.8 III r5.5 r-4.5 r-9.4 4.3 5.9 r-1.1 IV r5.1 r-0.7 r-5.5 r-0.1 r-1.5 r-4.9 ANNUAL r3.0 r-5.5 r-8.3 r3.3 r3.7 r0.3 -------------------------------------------------------------------------------------------------- See footnotes following Table 6. March 4, 2010 r=revised Source: Bureau of Labor Statistics

Table 6. Nonfinancial corporate sector: Productivity, hourly compensation, unit labor costs, unit profits, and prices, seasonally adjusted Output Hourly Real Unit Total Unit Implicit Year per all- compen- hourly Unit non- unit pro- price and employee Employee sation compen- labor labor costs fits deflator quarter hour Output hours (1) sation(2) costs costs(6) (7) (8) (4) ---------------------------------------------------------------------------------------------------------- Indexes 1992=100 2007 I r143.6 175.1 r122.0 r164.3 r115.1 114.4 123.1 116.8 171.2 121.8 II r144.3 176.5 r122.3 r165.0 r114.4 114.4 124.9 117.2 171.8 122.2 III r144.0 175.8 r122.1 r166.1 r114.5 115.3 127.4 118.6 155.6 122.0 IV r146.2 178.5 r122.1 r168.6 r114.6 115.3 127.9 118.7 149.9 121.6 ANNUAL r144.5 176.5 r122.1 r166.0 r114.6 114.9 125.8 117.8 162.1 121.9 2008 I r145.0 176.9 r122.0 r168.7 r113.4 116.3 129.1 119.8 133.0 121.0 II r147.3 178.8 r121.3 r169.7 r112.8 115.1 129.2 118.9 134.7 120.4 III r149.1 178.4 r119.7 r172.4 r112.9 115.6 129.8 119.4 145.3 121.8 IV r149.2 174.6 r117.0 r175.0 r117.2 117.3 134.1 121.8 129.5 122.5 ANNUAL r147.6 177.2 r120.0 r171.4 r114.0 116.1 130.5 120.0 135.7 121.4 2009 I r146.6 166.6 r113.7 r173.2 r116.6 118.1 139.1 123.8 127.5 124.1 II r149.9 166.4 r111.0 r175.4 r117.8 117.1 138.0 122.7 133.8 123.7 III r151.3 r165.7 r109.5 r175.9 r117.0 r116.3 r135.7 r121.5 r140.0 123.2 ---------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2007 I r-0.6 0.2 r0.8 r3.9 r0.1 4.5 7.5 5.3 -10.2 3.2 II r2.0 3.2 r1.2 r1.7 r-2.4 -0.3 5.8 1.4 1.5 1.4 III r-0.8 -1.5 r-0.7 r2.6 r0.3 3.4 8.2 4.8 -32.7 -0.7 IV r6.3 6.2 r-0.1 r6.3 r0.5 0.0 1.5 0.5 -13.8 -1.3 ANNUAL 1.0 1.7 0.7 3.6 r0.7 2.6 5.8 3.5 -9.9 1.7 2008 I r-3.2 -3.6 r-0.4 r0.1 r-4.2 3.5 3.9 3.6 -38.0 -1.9 II r6.6 4.4 r-2.1 r2.3 r-2.0 -4.0 0.5 -2.7 5.0 -2.0 III r4.9 -0.8 r-5.4 r6.5 r0.3 1.6 1.8 1.6 35.5 4.8 IV r0.2 -8.3 r-8.5 r6.3 r16.0 6.1 13.9 8.3 -37.0 2.4 ANNUAL r2.2 0.4 r-1.7 r3.2 r-0.6 1.1 3.7 1.8 -16.3 -0.4 2009 I r-6.8 -17.1 r-11.0 r-4.1 r-1.8 2.9 15.8 6.6 -5.8 5.3 II r9.2 -0.6 r-9.0 r5.3 r3.9 -3.6 -3.2 -3.5 21.0 -1.3 III r3.9 r-1.7 r-5.4 r1.0 r-2.5 r-2.8 r-6.5 r-3.9 r19.9 -1.8 ---------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2007 I 0.3 1.4 1.1 3.3 0.8 2.9 5.5 3.7 -3.0 2.8 II r1.6 2.6 r1.0 r3.6 r0.9 2.0 5.0 2.8 -2.2 2.1 III r0.4 0.9 r0.5 r3.9 1.6 3.5 7.0 4.5 -18.7 1.1 IV r1.7 2.0 0.3 3.6 -0.4 1.9 5.7 3.0 -14.7 0.6 ANNUAL 1.0 1.7 0.7 3.6 r0.7 2.6 5.8 3.5 -9.9 1.7 2008 I 1.0 1.0 0.0 2.7 -1.5 1.7 4.8 2.6 -22.3 -0.6 II r2.1 1.3 r-0.8 r2.8 r-1.4 0.7 3.5 1.5 -21.6 -1.5 III r3.5 1.5 r-2.0 r3.8 r-1.4 0.2 1.9 0.7 -6.6 -0.1 IV r2.0 -2.2 r-4.1 r3.8 r2.2 1.7 4.9 2.6 -13.6 0.8 ANNUAL r2.2 0.4 r-1.7 r3.2 r-0.6 1.1 3.7 1.8 -16.3 -0.4 2009 I r1.1 -5.8 r-6.8 r2.7 r2.9 1.6 7.7 3.4 -4.1 2.6 II r1.7 -6.9 r-8.5 r3.4 r4.4 1.7 6.8 3.2 -0.7 2.8 III r1.5 r-7.1 r-8.5 r2.1 r3.7 r0.6 r4.5 r1.7 r-3.7 1.1 ---------------------------------------------------------------------------------------------------------- See footnotes following Table 6. March 4, 2010 r=revised Source: Bureau of Labor Statistics

SOURCES: Output data are from the Bureau of Economic Analysis and the Census Bureau of the U.S. Department of Commerce; the Bureau of Labor Statistics, U.S. Department of Labor; and the Federal Reserve Board. Compensation and hours data are from the Bureau of Labor Statistics and the Bureau of Economic Analysis. RELIABILITY: Productivity and cost measures are regularly revised as more complete information becomes available. The measures are first published within 40 days of the close of the reference period; revisions appear 30 days later, and second revisions after an additional 60 days. In the business sector, the third publication (second revision) of a quarterly index of output per hour of all persons has differed from the initial value by between -1.5 and +1.4 index points approximately 95 percent of the time. This interval is based on the performance of this measure between the fourth quarter of 1995 and the third quarter of 2009. Footnotes, Tables 1-6 (1) Wages and salaries of employees plus employers' contributions for social insurance and private benefit plans. Except for nonfinancial corporations, where there are no self-employed, data also include an estimate of wages, salaries, and supplemental payments for the self- employed. (2) The change for recent quarters is based on the Consumer Price Index for all urban consumers (CPI-U). The trend from 1978-2008 is based on the Consumer Price Index research series (CPI-U-RS). (3) Unit nonlabor payments include profits, consumption of fixed capital, taxes on production and imports less subsidies, net interest and miscellaneous payments, business current transfer payments, rental income of persons, and the current surplus of government enterprises. (4) Current dollar output divided by the output index. (5) Quarterly changes: Percent change compounded at annual rate is calculated using index numbers to three decimal places. Indexes published in the news release are rounded to one decimal place for convenience. Annual changes: Percent change is calculated using annual average indexes to three decimal places. (6) Unit nonlabor costs include consumption of fixed capital, taxes on production and imports less subsidies, net interest and miscellaneous payments, and business current transfer payments. (7) Total unit costs are the sum of unit labor and nonlabor costs. (8) Unit profits include corporate profits before tax with inventory valuation and capital consumption adjustments.

Appendix table 1. Business sector: Revised 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 2005 I r137.0 160.3 r117.1 r161.8 r120.4 r118.1 r129.9 122.5 II r136.4 161.0 r118.0 r162.5 r120.2 r119.1 r130.5 123.3 III r137.6 162.5 r118.1 r164.9 r120.2 r119.9 r132.7 124.7 IV r137.7 163.4 r118.7 r166.2 r119.8 r120.7 r134.3 125.8 ANNUAL r137.2 161.8 r118.0 r163.8 r120.2 r119.5 r131.9 124.1 2006 I r138.6 166.0 r119.8 r168.4 r120.8 r121.5 r134.5 126.4 II r138.7 166.6 r120.1 r169.0 r120.3 r121.8 r136.7 127.4 III r137.9 166.4 r120.6 r169.7 r119.6 r123.0 r137.3 128.3 IV r138.8 168.1 r121.1 r173.5 r122.7 r125.0 r135.1 128.7 ANNUAL r138.5 166.8 r120.4 r170.1 r120.8 r122.8 r135.9 127.7 --------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2005 I r3.3 4.5 r1.2 r2.8 r0.8 -0.5 9.6 3.3 II r-1.6 1.7 r3.3 r1.7 r-0.8 r3.3 1.7 2.7 III r3.4 3.7 r0.3 r6.2 r0.2 r2.7 r7.2 4.5 IV r0.3 2.3 r2.0 r3.0 r-1.4 2.7 4.7 3.5 ANNUAL 1.7 3.4 1.6 4.0 0.6 2.2 4.9 3.2 2006 I r2.7 6.5 r3.7 r5.6 r3.5 r2.8 r0.8 2.0 II r0.4 1.4 r1.1 r1.3 r-1.8 1.0 6.7 3.2 III -2.2 -0.4 r1.8 r1.6 r-2.1 r3.9 r1.6 2.9 IV r2.6 4.0 r1.5 r9.3 r10.5 r6.6 -6.3 1.3 ANNUAL 1.0 3.1 2.1 3.8 0.5 2.8 3.1 2.9 --------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2005 I 2.3 3.7 1.3 4.8 1.7 2.4 4.2 3.1 II r1.2 3.3 2.0 3.9 r0.9 2.6 3.5 3.0 III 1.9 3.4 1.5 3.8 r0.1 1.9 5.9 3.4 IV 1.3 3.0 1.7 3.4 r-0.3 2.0 5.8 3.5 ANNUAL 1.7 3.4 1.6 4.0 0.6 2.2 4.9 3.2 2006 I 1.2 3.5 2.3 4.1 0.4 2.9 3.6 3.2 II 1.7 3.4 1.8 4.0 0.1 2.3 4.8 3.3 III 0.3 2.4 2.1 2.9 -0.5 2.6 3.4 2.9 IV 0.8 2.9 r2.0 r4.4 r2.4 3.5 0.6 2.4 ANNUAL 1.0 3.1 2.1 3.8 0.5 2.8 3.1 2.9 -------------------------------------------------------------------------------------------------------- See footnotes following Table 6. March 4, 2010 r=revised Source: Bureau of Labor Statistics

Appendix table 2. Nonfarm business sector: Revised 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 2005 I r136.0 160.6 r118.1 r160.6 r119.5 r118.1 r131.5 123.0 II r135.7 161.2 r118.8 r161.6 r119.6 r119.1 r132.1 123.9 III r136.7 162.7 r119.0 r164.0 r119.5 r120.0 r134.6 125.3 IV r136.6 163.6 r119.7 r165.0 r119.0 r120.7 r136.2 126.4 ANNUAL r136.2 162.0 r118.9 r162.8 r119.4 r119.5 r133.6 124.7 2006 I r137.5 166.4 r120.9 r167.1 r119.9 r121.5 r136.8 127.1 II r137.7 166.8 r121.1 r167.9 r119.5 r122.0 r139.1 128.3 III r137.0 166.7 r121.7 r168.6 r118.9 r123.0 r139.5 129.1 IV r138.0 168.4 r122.1 r172.5 r122.0 r125.0 r136.8 129.3 ANNUAL r137.5 167.1 r121.5 r169.0 r120.0 r122.9 r138.0 128.5 --------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2005 I r4.0 4.8 r0.8 r3.2 r1.2 -0.8 11.0 3.7 II r-0.9 1.6 r2.5 r2.7 r0.1 3.6 r1.9 2.9 III r3.0 3.7 r0.7 r5.9 r0.0 r2.8 r7.5 4.6 IV r-0.1 2.4 r2.5 r2.5 r-1.9 2.6 5.1 3.6 ANNUAL 1.7 3.4 1.7 4.0 0.6 2.3 5.5 3.5 2006 I r2.7 6.8 r4.1 r5.3 r3.3 2.6 r1.7 2.2 II r0.3 1.0 r0.7 r1.8 r-1.4 1.5 6.8 3.6 III -1.9 -0.1 r1.8 r1.6 r-2.1 r3.5 r1.1 2.6 IV r2.9 4.2 r1.2 r9.7 r10.9 r6.6 -7.3 0.9 ANNUAL r1.0 3.1 r2.1 3.8 0.5 2.8 3.3 3.0 --------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2005 I 2.3 3.8 r1.4 4.7 1.6 2.4 4.9 3.3 II 1.2 3.2 2.0 r3.9 1.0 r2.7 4.3 3.4 III 1.7 3.4 1.6 3.8 0.0 2.0 6.4 3.7 IV r1.5 3.1 1.6 r3.6 -0.2 2.0 6.3 3.7 ANNUAL 1.7 3.4 1.7 4.0 0.6 2.3 5.5 3.5 2006 I 1.2 3.6 2.4 4.1 0.3 2.9 4.0 3.3 II 1.5 3.4 2.0 3.9 0.0 2.4 5.2 3.5 III 0.2 2.5 2.2 2.8 -0.6 2.5 r3.6 3.0 IV r1.0 2.9 r1.9 4.5 2.5 3.5 r0.4 2.3 ANNUAL r1.0 3.1 r2.1 3.8 0.5 2.8 3.3 3.0 -------------------------------------------------------------------------------------------------------- See footnotes following Table 6. March 4, 2010 r=revised Source: Bureau of Labor Statistics

Appendix table 3. Manufacturing sector: Revised 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 2005 I r170.0 143.8 r84.6 r160.8 r119.7 94.6 II r171.9 144.5 r84.1 r163.1 r120.6 r94.9 III r172.7 144.5 r83.7 r165.3 r120.5 95.7 IV r173.1 146.6 r84.7 r163.6 r117.9 r94.5 ANNUAL r171.9 144.8 r84.3 r163.2 r119.7 r94.9 2006 I r172.5 147.4 r85.4 r165.6 r118.8 r96.0 II r172.4 147.4 r85.5 r164.7 r117.2 r95.5 III r174.5 147.9 r84.8 r165.6 r116.8 r94.9 IV r175.7 147.4 r83.9 r169.9 r120.2 r96.7 ANNUAL r173.8 147.5 r84.9 r166.4 r118.2 95.8 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2005 I 7.3 6.3 -1.0 r-2.2 -4.2 -8.9 II r4.5 1.9 r-2.5 r5.7 r3.1 1.2 III r1.8 0.0 r-1.7 r5.5 r-0.4 3.7 IV r1.0 5.8 r4.8 r-4.0 r-8.2 -5.0 ANNUAL 4.8 3.7 -1.1 3.3 0.0 -1.4 2006 I r-1.3 2.2 r3.6 r5.1 r3.1 6.6 II r-0.3 0.1 r0.4 r-2.3 r-5.3 -2.0 III r5.0 1.3 r-3.5 r2.1 r-1.6 -2.7 IV r2.9 -1.4 r-4.2 r11.0 r12.2 r7.9 ANNUAL r1.1 1.8 0.8 2.0 r-1.2 0.9 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2005 I 5.1 3.9 -1.2 4.8 1.7 -0.3 II 5.5 4.0 -1.4 4.3 1.3 -1.2 III 5.2 3.3 -1.8 3.2 -0.5 -1.8 IV r3.6 3.5 -0.1 1.1 r-2.5 -2.4 ANNUAL 4.8 3.7 -1.1 3.3 0.0 -1.4 2006 I 1.5 2.5 1.0 3.0 -0.7 1.5 II 0.3 2.0 1.7 1.0 -2.8 0.7 III 1.0 2.3 1.3 r0.2 -3.1 -0.9 IV r1.5 0.5 r-1.0 r3.9 r1.9 2.3 ANNUAL r1.1 1.8 0.8 2.0 r-1.2 0.9 ------------------------------------------------------------------------------------------------- See footnotes following Table 6. March 4, 2010 r=revised Source: Bureau of Labor Statistics

Appendix table 4. Durable manufacturing sector: Revised 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 2005 I r192.7 171.5 r89.0 r155.4 r115.7 r80.7 II r195.1 172.7 r88.6 r156.9 r116.1 r80.5 III 196.9 174.4 88.6 159.3 116.1 80.9 IV r200.0 179.5 r89.7 r157.3 r113.4 r78.6 ANNUAL r196.2 174.5 r89.0 r157.2 r115.3 r80.2 2006 I r198.8 179.9 r90.5 r160.2 r114.9 r80.5 II r198.6 180.5 r90.9 r158.7 r113.0 r79.9 III r201.8 180.9 r89.7 r159.5 r112.5 79.1 IV r202.6 179.9 r88.8 r164.5 r116.4 r81.2 ANNUAL r200.5 180.3 r89.9 r160.7 r114.1 80.2 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2005 I r7.5 7.9 r0.4 r-1.2 r-3.1 -8.0 II r5.0 2.9 r-2.0 r3.9 r1.3 -1.1 III r3.9 4.0 r0.1 r6.2 r0.3 2.2 IV r6.5 12.0 r5.2 r-5.0 r-9.1 -10.8 ANNUAL 5.3 5.2 r-0.2 3.1 r-0.2 -2.1 2006 I r-2.4 1.0 r3.5 r7.5 r5.4 10.1 II r-0.4 1.3 r1.7 r-3.6 r-6.6 -3.2 III r6.5 0.9 r-5.2 r2.1 r-1.6 -4.1 IV r1.7 -2.3 r-3.9 r13.2 r14.4 11.3 ANNUAL r2.2 3.3 1.1 2.2 r-1.0 0.0 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2005 I 4.3 4.0 r-0.3 5.0 1.9 0.7 II 5.4 4.9 r-0.4 3.8 0.9 -1.5 III 5.9 5.1 -0.8 2.8 -0.9 -3.0 IV r5.7 6.6 r0.9 r0.9 -2.8 -4.6 ANNUAL 5.3 5.2 r-0.2 3.1 r-0.2 -2.1 2006 I r3.2 4.9 r1.7 r3.0 r-0.7 -0.2 II r1.8 4.5 2.6 r1.1 r-2.7 -0.7 III r2.5 3.7 r1.2 0.1 r-3.1 -2.3 IV r1.3 0.2 r-1.0 r4.6 r2.6 3.3 ANNUAL r2.2 3.3 1.1 2.2 r-1.0 0.0 ------------------------------------------------------------------------------------------------- See footnotes following Table 6. March 4, 2010 r=revised Source: Bureau of Labor Statistics

Appendix table 5. Nondurable manufacturing sector: Revised 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 2005 I r147.8 115.2 r78.0 r169.2 r125.9 r114.5 II r149.4 115.4 r77.3 r172.9 r127.9 r115.8 III r149.6 114.2 r76.3 r174.5 r127.2 r116.7 IV r147.9 114.0 r77.1 r173.5 r125.1 r117.3 ANNUAL r148.7 114.7 r77.2 r172.5 r126.6 116.1 2006 I r147.9 115.1 r77.8 r173.8 r124.7 r117.5 II r148.2 114.7 r77.4 r173.9 r123.8 r117.3 III r149.0 115.3 r77.4 r175.0 r123.4 r117.5 IV r150.6 115.2 r76.5 r177.8 r125.8 r118.1 ANNUAL r148.9 115.1 r77.3 r175.1 r124.4 117.6 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2005 I r7.7 4.3 r-3.2 r-4.6 r-6.5 -11.4 II 4.3 0.6 -3.5 9.2 r6.5 4.7 III r0.6 -4.1 r-4.7 r3.7 r-2.1 3.1 IV r-4.5 -0.6 r4.0 r-2.3 r-6.5 2.3 ANNUAL 4.9 2.0 -2.8 3.6 0.2 -1.2 2006 I r0.0 3.8 r3.8 r0.7 r-1.2 0.7 II r0.8 -1.2 r-2.1 r0.1 r-3.0 -0.7 III r2.1 1.9 r-0.3 r2.6 r-1.2 0.4 IV r4.4 -0.3 r-4.5 r6.7 r7.9 2.2 ANNUAL r0.2 0.3 r0.1 1.5 -1.7 1.3 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2005 I 6.7 3.8 r-2.7 r4.2 r1.1 -2.3 II 6.2 3.0 r-3.0 r4.9 2.0 -1.2 III 4.9 1.4 -3.4 3.9 0.2 -1.0 IV 1.9 0.0 r-1.9 r1.4 r-2.3 -0.5 ANNUAL 4.9 2.0 -2.8 3.6 0.2 -1.2 2006 I r0.1 -0.1 -0.2 r2.8 r-0.9 2.7 II -0.8 -0.6 0.2 r0.5 -3.2 1.3 III -0.4 0.9 r1.3 r0.3 -3.0 0.7 IV 1.8 1.0 r-0.8 r2.5 r0.5 0.7 ANNUAL r0.2 0.3 r0.1 1.5 -1.7 1.3 ------------------------------------------------------------------------------------------------- See footnotes following Table 6. March 4, 2010 r=revised Source: Bureau of Labor Statistics

Appendix table 6. Nonfinancial corporate sector: Revised 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 2005 I r140.0 164.5 r117.5 r154.0 r114.6 110.0 113.7 111.0 153.7 114.9 II r141.4 167.4 r118.3 r154.8 r114.5 109.5 114.3 110.8 162.6 115.5 III r140.3 166.8 r118.9 r157.0 r114.5 111.9 117.0 113.3 154.1 117.0 IV r142.4 170.4 r119.7 r157.1 r113.2 110.3 116.4 111.9 173.5 117.6 ANNUAL r141.0 167.3 r118.6 r155.7 r114.2 110.4 115.4 111.8 161.1 116.3 2006 I r143.1 172.6 r120.7 r159.1 r114.1 111.2 116.7 112.6 176.5 118.5 II r142.0 172.0 r121.1 r159.3 r113.4 112.2 118.9 114.0 175.8 119.6 III r143.4 174.3 r121.5 r159.8 r112.7 111.4 119.1 113.5 191.4 120.6 IV r143.8 175.0 r121.7 r162.7 r115.1 113.2 120.9 115.3 175.8 120.8 ANNUAL r143.1 173.5 r121.2 r160.2 r113.8 112.0 118.9 113.8 179.9 119.9 ---------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2005 I r4.6 5.2 r0.5 r1.8 r-0.2 -2.7 6.5 -0.3 23.0 2.2 II r4.0 7.0 r2.9 r2.1 r-0.4 -1.8 2.2 -0.7 25.3 2.2 III r-3.3 -1.4 r2.0 r5.7 r-0.2 9.3 9.9 9.4 -19.2 5.4 IV r6.3 9.1 r2.6 r0.2 r-4.2 -5.8 -2.1 -4.8 60.5 1.8 ANNUAL 2.6 4.3 1.7 3.2 -0.1 0.6 3.7 1.5 12.8 2.8 2006 I r1.8 5.3 r3.4 r5.2 r3.1 3.3 0.9 2.6 7.0 3.2 II r-3.0 -1.5 r1.5 r0.6 r-2.6 3.7 7.9 4.8 -1.6 3.9 III r4.1 5.5 r1.4 r1.3 r-2.4 -2.7 0.5 -1.8 40.6 3.2 IV r1.0 1.6 r0.7 r7.6 r8.7 6.5 6.4 6.5 -28.7 0.7 ANNUAL 1.4 3.7 r2.2 2.9 -0.4 1.4 3.1 1.9 11.7 3.1 ---------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2005 I 3.5 4.7 1.2 4.2 1.1 0.7 1.9 1.0 15.1 2.6 II r3.1 5.0 r1.8 3.3 0.4 0.2 2.8 0.9 13.8 2.4 III 0.9 2.8 1.9 3.1 -0.6 2.1 5.9 3.2 3.9 3.3 IV 2.8 4.9 r2.0 r2.4 r-1.3 -0.4 4.0 0.8 18.9 2.9 ANNUAL 2.6 4.3 1.7 3.2 -0.1 0.6 3.7 1.5 12.8 2.8 2006 I 2.2 4.9 2.7 3.3 -0.5 1.1 2.6 1.5 14.8 3.1 II 0.4 2.8 2.3 2.9 -1.0 2.5 4.0 2.9 8.1 3.6 III 2.3 4.5 2.2 1.8 -1.5 -0.5 1.7 0.1 24.2 3.0 IV 0.9 2.7 r1.7 r3.6 r1.6 2.6 3.9 3.0 1.4 2.8 ANNUAL 1.4 3.7 r2.2 2.9 -0.4 1.4 3.1 1.9 11.7 3.1 --------------------------------------------------------------------------------------------------------- See footnotes following Table 6. March 4, 2010 r=revised Source: Bureau of Labor Statistics

**Last Modified Date:**March 04, 2010