Productivity and Costs by Industry: Manufacturing and Mining Industries, 2015


For release 10:00 a.m. (EDT) Thursday, April 7, 2016                                 USDL-16-0699

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                                   PRODUCTIVITY AND COSTS BY INDUSTRY:
                                MANUFACTURING AND MINING INDUSTRIES, 2015

Labor productivity rose in 31 of 63 manufacturing and mining industries in 2015, the U.S. Bureau of 
Labor Statistics reported today. This was higher than 2014 when labor productivity rose in 26 industries. 
Output and hours worked increased in fewer industries in 2015 than in the previous year.

Unit labor costs rose in 43 of 59 manufacturing industries and in three of four mining industries. Twelve 
industries with productivity increases posted declines in unit labor costs. Increases in labor productivity 
mitigate the impact of rising hourly compensation on unit labor costs facing employers.

Trends in labor productivity and unit labor costs in NAICS 3-digit industries in 2015

Manufacturing
  *     Labor productivity increased in 9 manufacturing industries in 2015, as output increased in 12 
  	industries and hours worked fell in seven industries.
  *     Productivity rose fastest in the petroleum and coal products industry, where output increased 
        by 4.6 percent and hours worked declined 2.3 percent.
  *	Unit labor costs increased in 16 manufacturing industries. 
  *	For five industries, productivity outpaced hourly compensation growth, leading to declines in
        unit labor costs.
        
Mining
  *	Productivity rose 11.4 percent in the oil and gas extraction industry, where output increased
  	and hours worked declined. 
  *	Output in mining, except oil and gas, declined at a greater pace than hours worked, resulting
  	in a productivity decline of 1.4 percent. 
  *	Productivity outpaced hourly compensation gains in the oil and gas extraction industry,
  	resulting in a 6.7 percent decline in unit labor costs, while unit labor costs increased 4.8
  	percent in mining, except oil and gas.

Productivity trends in selected time periods

  *	During the 1987-2014 period, productivity rose in 86 manufacturing and mining 
  	industries, with median productivity growth of approximately 1.7 percent per year. 
  *	Productivity growth in the 1987-2014 period was associated with output rising in 60
  	manufacturing and mining industries, while hours worked increased in only 14. 
  *	Productivity increased in 54 industries in the more recent 2007-2014 period, despite the
  	period encompassing a severe recession.
  *	The 2007-2014 productivity increases are predominantly the result of a decline in hours
  	worked, rather than an increase in output, as 70 industries experienced decreasing hours
  	worked in this period compared to 25 industries that documented increasing output. 
 
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Last Modified Date: April 07, 2016