Productivity and Costs News Release



Transmission of material in this release is embargoed until     USDL 16-1770                          
8:30 a.m. (EDT) Thursday, September 1, 2016

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

                           
                           
                           
                           PRODUCTIVITY AND COSTS
                       Second Quarter 2016, Revised
                                        
Nonfarm business sector labor productivity decreased at a 0.6-percent annual 
rate during the second quarter of 2016, the U.S. Bureau of Labor Statistics 
reported today, as output increased 1.1 percent and hours worked increased 1.7 
percent. (All quarterly percent changes in this release are seasonally 
adjusted annual rates.) From the second quarter of 2015 to the second quarter 
of 2016, productivity decreased 0.4 percent, the first four-quarter decline in 
the series since a 0.6-percent decline in the second quarter of 2013. (See 
table A.) 

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

Unit labor costs in the nonfarm business sector increased 4.3 percent in the 
second quarter of 2016, reflecting a 3.7-percent increase in hourly 
compensation and a 0.6-percent decline in productivity. Unit labor costs 
increased 2.6 percent over the last four quarters. (See tables A and 2.) 

BLS calculates 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.

Manufacturing sector labor productivity decreased 0.4 percent in the second 
quarter of 2016, as output and hours worked decreased 0.8 percent and 0.4 
percent, respectively. Output per hour increased 2.4 percent in the durable 
goods manufacturing sector reflecting a 0.7-percent increase in output and a 
1.8-percent decline in hours worked. Productivity decreased 4.4 percent in the 
nondurable goods sector in the second quarter of 2016, following a 4.0-percent 
first-quarter increase. Over the last four quarters, manufacturing 
productivity increased 0.9 percent, as output increased 0.3 percent and hours 
declined 0.6 percent. (See tables A, 3, 4, and 5.)  Unit labor costs in 
manufacturing increased 6.7 percent in the second quarter of 2016 and rose 2.5 
percent from the same quarter a year ago. Hourly compensation increased 6.3 
percent in the second quarter of 2016.

The concepts, sources, and methods used for the manufacturing output series 
differ from those used in the business and nonfarm business output series; 
these output measures are not directly comparable. See the Technical Notes for 
a more detailed explanation. 

Preliminary second quarter 2016 measures of productivity and costs were 
announced for the nonfinancial corporate sector. Productivity decreased 2.1 
percent in the second quarter of 2016--the largest decline since a 3.1 
percent decline in the third quarter of 2013--as output decreased 0.7 percent, 
and hours worked increased 1.4 percent. Unit labor costs increased 5.9 
percent, reflecting both a 3.7 percent increase in hourly compensation and a 
2.1 percent decline in productivity. (See tables C and 6.)

Revised measures

The measures released today are based on more recent source data than were 
available for the preliminary report. Table B presents previous and revised 
productivity and related measures for the nonfarm business, business, and 
manufacturing sectors.

In the second quarter of 2016, nonfarm business productivity was revised down 
slightly to a decline of 0.6 percent. Output was revised down slightly to an 
increase of 1.1 percent, and hours were revised down slightly to an increase 
of 1.7 percent. Unit labor costs increased 4.3 percent rather than increasing 
2.0 percent as reported August 9, due mainly to a 2.2-percentage point upward 
revision to hourly compensation, in addition to the slight downward revision 
to productivity. 

In the second quarter of 2016, manufacturing sector productivity was revised 
down to a decline of 0.4 percent from a previously-reported decline of 0.2 
percent. Unit labor costs increased 6.7 percent, higher than the preliminary 
estimate of 3.1 percent. Durable and nondurable goods manufacturing unit labor 
costs were also revised up, to increases of 3.0 percent and 13.0 percent, 
respectively. After revision, nondurable goods unit labor costs had its 
largest gain in the series since a 13.2-percent gain in the fourth quarter of 
2008.

In the first quarter of 2016, nonfarm business productivity decreased at the 
same 0.6-percent rate reported in the previous estimate. Unit labor costs were 
revised down slightly. Manufacturing sector productivity was revised down to 
an increase of 1.3 percent. Hourly compensation and unit labor costs were 
revised downward slightly.

In the nonfinancial corporate sector, first-quarter 2016 productivity was 
revised down slightly to an increase of 1.3 percent. Unit labor costs were 
revised down slightly to a decrease of 3.2 percent (See table C.)

Full historical annual and quarterly measures can be found on the productivity 
and costs home page: www.bls.gov/lpc/#data.
______________  







The preliminary Productivity and Costs news release for third-quarter 2016 is 
scheduled to be released on Thursday, November 3, 2016 at 8:30 a.m. (EDT).





======================================================================================================
Table A. Revised second-quarter 2016 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
------------------------------------------------------------------------------------------------------  
Labor productivity      -0.6     -0.4    -0.8    -0.4    -0.4     0.9     2.4     1.2    -4.4     0.3
Output                   1.1      1.1     1.2     1.2    -0.8     0.3     0.7     0.3    -2.6     0.2
Hours worked             1.7      1.5     2.0     1.7    -0.4    -0.6    -1.8    -0.9     1.9    -0.1
Hourly compensation      3.7      2.2     3.3     2.0     6.3     3.4     5.5     2.9     8.0     4.4
Real hourly 
 compensation            1.1      1.1     0.7     0.9     3.7     2.3     2.9     1.8     5.4     3.3
Unit labor costs         4.3      2.6     4.1     2.4     6.7     2.5     3.0     1.7    13.0     4.1
======================================================================================================
Table B. Revised and previous measures: second quarter and first quarter 2016

Sector            Nonfarm                                             Durable           Nondurable
                  Business         Business         Manufacturing     Manufacturing     Manufacturing
              Revised Previous  Revised Previous  Revised Previous  Revised Previous  Revised Previous
------------------------------------------------------------------------------------------------------
                                Percent change, annual rate, second quarter 2016
Labor 
 productivity   -0.6    -0.5     -0.8     -0.7      -0.4    -0.2      2.4      2.6     -4.4     -4.1
Output           1.1     1.2      1.2      1.4      -0.8    -0.8      0.7      0.5     -2.6     -2.4
Hours worked     1.7     1.8      2.0      2.1      -0.4    -0.7     -1.8     -2.0      1.9      1.8
Hourly
 compensation    3.7     1.5      3.3      1.1       6.3     2.9      5.5      2.4      8.0      4.2
Real hourly 
 compensation    1.1    -1.1      0.7     -1.4       3.7     0.4      2.9     -0.1      5.4      1.6
Unit labor
 costs           4.3     2.0      4.1      1.7       6.7     3.1      3.0     -0.1     13.0      8.7
 ------------------------------------------------------------------------------------------------------
                                Percent change, annual rate, first quarter 2016
Labor 
 productivity   -0.6    -0.6     -0.7     -0.7       1.3     1.5     -0.4     -0.2      4.0      4.0
Output           0.7     0.7      0.8      0.8       0.6     0.7     -0.1      0.0      1.4      1.5
Hours worked     1.4     1.4      1.5      1.5      -0.8    -0.8      0.2      0.2     -2.5     -2.5
Hourly 
 compensation   -0.9    -0.8     -1.1     -0.9      -4.8    -4.6     -6.4     -5.9     -1.9     -2.1
Real hourly 
 compensation   -0.6    -0.4     -0.7     -0.5      -4.5    -4.3     -6.0     -5.6     -1.5     -1.8
Unit labor 
 costs          -0.3    -0.2     -0.4     -0.2      -6.0    -5.9     -6.0     -5.7     -5.6     -5.9
======================================================================================================
Table C. Nonfinancial corporations: preliminary second-quarter and revised first-quarter 2016 
productivity and cost measures
                                                          Real 
               Labor                         Hourly       hourly       Unit                   Implicit
               produc-             Hours     compen-      compen-      labor      Unit        price
               tivity    Output    worked    sation       sation       costs      profits     deflator
------------------------------------------------------------------------------------------------------
                                Percent change, annual rate, second quarter 2016
Q to Q          -2.1      -0.7      1.4       3.7          1.1          5.9       -17.0          1.9
Y to Y          -0.1       1.6      1.8       1.4          0.3          1.5        -9.1         -0.1
                                Percent change, annual rate, first quarter 2016
Q to Q Revised   1.3       1.9      0.6      -1.9         -1.6         -3.2        30.7         -2.0
Q to Q Previous  1.4       2.0      0.6      -1.8         -1.5         -3.1        30.6         -2.0
======================================================================================================




				  TECHNICAL NOTES  

Labor Hours  

Hours data for the labor productivity and cost measures include hours worked
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, counting a person who is employed by two 
or more establishments at each place of employment. 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) for 2001 forward and data from 
the BLS Hours at Work survey, conducted for this purpose, 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 to estimate hours worked for farm labor, nonfarm 
proprietors, and nonfarm unpaid family workers. Using CPS information on 
employment and hours worked at primary jobs and all other jobs, separately, 
the BLS productivity measures assign all hours worked to the correct 
industrial sector. Hours 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.

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 76 percent of the value of GDP in 
2015. Nonfarm business, which excludes farming, accounted for about 75 
percent of GDP in 2015.

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 indexes 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. 

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 2015.
     
Labor Productivity

The measure describes the relationship between real output and the labor time 
involved in its production. Measures of labor productivity growth show the 
changes from period to period in the amount of goods and services produced 
per hour worked. They reflect the joint effects of many influences, including 
changes in technology; capital investment; level of output; utilization of
capacity, energy, and materials; the organization of production; managerial
skill; and the characteristics and effort of the work force.

Labor Compensation

The measure includes accrued wages and salaries, supplements, employer 
contributions to employee benefit plans, and taxes. Estimates of labor 
compensation by major sector, required for measures of hourly compensation
and unit labor costs, are based primarily on employee compensation data from
the NIPA, prepared by the BEA. The compensation of employees in general 
government, nonprofit institutions and private households are subtracted from
compensation of domestic employees to derive employee compensation for the
business sector. The labor compensation of proprietors cannot be explicitly
identified and must be estimated. This is done by assuming that proprietors
have the same hourly compensation as employees in the same sector. The 
quarterly labor productivity and cost measures do not contain estimates of
compensation for unpaid family workers.  
      
Unit Labor Costs

These measures describe the relationship between compensation per hour and
labor productivity, or real output per hour, and can be used as an indicator
of inflationary pressure on producers. Increases in hourly compensation 
increase unit labor costs; labor productivity increases offset compensation 
increases and lower unit labor costs. 

Presentation of the data

The quarterly data in this release are presented in three ways: as percent 
changes from the previous quarter presented at a compound annual rate, as
percent changes from the corresponding quarter of the previous year, and as
index number series where 2009=100. Annual data are presented both as index
number series and percent changes from the previous year.  

The index numbers and rates of change reported in the productivity and costs
news release are rounded to one decimal place. All percent changes in this 
release and on the BLS web site are calculated using index numbers to three
decimal places. A complete historical series of these index numbers are 
available at the BLS web site, www.bls.gov/data/home.htm, or by contacting 
the BLS Division of Major Sector Productivity (Telephone 202-691-5606 or 
email dprweb@bls.gov).

For a more detailed explanation of methodology see "Technical Information 
About the Major Sector Productivity and Costs Methods" at 
www.bls.gov/lpc/lpcmethods.pdf.
      
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: Labor productivity, hourly compensation, unit labor costs, and prices,
seasonally adjusted.
                                                          Real
                                               Hourly     hourly                Unit       Implicit
Year          Labor                            compen-    compen-     Unit      nonlabor   price
and           produc-               Hours      sation     sation      labor     payments   deflator
quarter       tivity     Output     worked     (1)        (2)         costs     (3)        (4)
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate (5)

2016 II       -0.8 r       1.2 r      2.0 r      3.3 r      0.7 r      4.1 r     -0.4 r      2.2 r
     I        -0.7         0.8        1.5       -1.1 r     -0.7 r     -0.4 r      1.4 r      0.4  

2015 ANNUAL    0.8         3.1        2.3        2.8        2.7        2.0       -1.0        0.7  

2015 IV       -2.5         0.8        3.4        2.9        2.1        5.5       -6.7        0.1  
     III       2.3         2.1       -0.2        2.9        1.6        0.6        1.3        0.9  
     II        1.5         3.0        1.6        5.1        2.6        3.6        0.0        2.1  
     I         0.7         2.3        1.6        1.6        4.6        0.9       -2.1       -0.4  

2014 ANNUAL    0.6         3.0        2.3        2.6        1.0        2.0        1.0        1.6  

2014 IV       -1.8         2.8        4.7        3.3        3.6        5.1       -6.5       -0.1  
     III       3.4         6.4        2.9        3.2        2.3       -0.2        3.3        1.3  
     II        1.8         5.0        3.1       -1.8       -3.8       -3.6       10.4        2.3  
     I        -3.6        -2.0        1.6        6.5        4.1       10.4       -8.9        1.5  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2016 II       -0.4         1.2 r      1.7        2.0 r      0.9 r      2.4 r     -1.2 r      0.9  
     I         0.1         1.7        1.6        2.5        1.4        2.3 r     -1.1        0.9  

2015 ANNUAL    0.8         3.1        2.3        2.8        2.7        2.0       -1.0        0.7  

2015 IV        0.5         2.1        1.6        3.1        2.7        2.6       -1.9        0.7  
     III       0.7         2.6        1.9        3.2        3.1        2.5       -1.8        0.6  
     II        0.9         3.6        2.7        3.3        3.3        2.3       -1.4        0.7  
     I         1.0         4.1        3.1        1.5        1.6        0.5        1.1        0.8  

2014 ANNUAL    0.6         3.0        2.3        2.6        1.0        2.0        1.0        1.6  

2014 IV       -0.1         3.0        3.1        2.7        1.5        2.8       -0.7        1.3  
     III       1.3         3.6        2.3        2.4        0.6        1.0        2.6        1.7  
     II        0.9         3.1        2.2        1.8       -0.3        0.9        3.1        1.8  
     I         0.4         2.1        1.7        3.7        2.2        3.3       -1.0        1.4  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2016 II      105.8 r     118.9 r    112.5 r    116.3 r    104.2 r    109.9 r    110.7 r    110.3 r
     I       106.0       118.6      111.9      115.3 r    104.0 r    108.8 r    110.9 r    109.7  

2015 ANNUAL  106.2       117.6      110.7      114.3      103.4      107.5      111.7      109.3  

2015 IV      106.1       118.3      111.5      115.6      104.2      108.9      110.5      109.6  
     III     106.8       118.1      110.6      114.8      103.7      107.5      112.4      109.5  
     II      106.2       117.5      110.6      114.0      103.3      107.3      112.0      109.3  
     I       105.8       116.6      110.2      112.6      102.6      106.4      112.0      108.7  

2014 ANNUAL  105.4       114.1      108.2      111.1      100.7      105.4      112.9      108.5  

2014 IV      105.6       115.9      109.7      112.1      101.5      106.1      112.6      108.9  
     III     106.1       115.1      108.5      111.2      100.6      104.8      114.5      108.9  
     II      105.2       113.4      107.7      110.4      100.0      104.9      113.6      108.5  
     I       104.8       112.0      106.9      110.9      101.0      105.8      110.8      107.9  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                  September 1, 2016
r=revised                                                        Source: Bureau of Labor Statistics



Table 2. Nonfarm business sector: Labor productivity, hourly compensation, unit labor costs, and
prices, seasonally adjusted.
                                                          Real
                                               Hourly     hourly                Unit       Implicit
Year          Labor                            compen-    compen-     Unit      nonlabor   price
and           produc-               Hours      sation     sation      labor     payments   deflator
quarter       tivity     Output     worked     (1)        (2)         costs     (3)        (4)
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate (5)

2016 II       -0.6 r       1.1 r      1.7 r      3.7 r      1.1 r      4.3 r     -0.4 r      2.3 r
     I        -0.6         0.7        1.4       -0.9 r     -0.6 r     -0.3 r      2.1 r      0.7  

2015 ANNUAL    0.9         3.1        2.1        2.9        2.8        2.0       -0.4        1.0  

2015 IV       -2.4         0.8        3.3        3.1        2.3        5.7       -6.2        0.5  
     III       2.0         1.8       -0.2        2.9        1.5        0.8        1.1        1.0  
     II        1.2         3.1        1.9        4.8        2.2        3.6       -0.1        2.0  
     I         1.1         2.4        1.3        1.8        4.8        0.7       -0.1        0.4  

2014 ANNUAL    0.8         3.0        2.2        2.8        1.1        2.0        1.3        1.7  

2014 IV       -1.6         2.7        4.4        3.6        3.9        5.2       -6.3        0.1  
     III       4.2         6.5        2.3        3.9        3.0       -0.2        4.5        1.8  
     II        2.0         5.1        3.0       -1.7       -3.6       -3.7        9.8        1.9  
     I        -3.7        -1.8        2.0        6.2        3.8       10.2       -9.2        1.4  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2016 II       -0.4         1.1        1.5        2.2 r      1.1 r      2.6 r     -0.9 r      1.1  
     I         0.0         1.6        1.6        2.4 r      1.3 r      2.4 r     -0.8 r      1.0  

2015 ANNUAL    0.9         3.1        2.1        2.9        2.8        2.0       -0.4        1.0  

2015 IV        0.4         2.0        1.6        3.1        2.7        2.7       -1.4        0.9  
     III       0.7         2.5        1.8        3.2        3.1        2.6       -1.4        0.8  
     II        1.2         3.7        2.5        3.5        3.5        2.3       -0.6        1.0  
     I         1.4         4.2        2.7        1.9        2.0        0.5        1.8        1.0  

2014 ANNUAL    0.8         3.0        2.2        2.8        1.1        2.0        1.3        1.7  

2014 IV        0.2         3.1        2.9        2.9        1.7        2.7       -0.6        1.3  
     III       1.6         3.8        2.2        2.6        0.8        1.0        3.0        1.8  
     II        1.0         3.1        2.1        1.9       -0.1        0.9        3.4        2.0  
     I         0.3         2.0        1.7        3.8        2.3        3.4       -0.4        1.8  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2016 II      106.0 r     119.0 r    112.3 r    116.7 r    104.5 r    110.1 r    110.8 r    110.3 r
     I       106.2       118.7      111.8      115.6 r    104.3 r    108.9 r    110.9 r    109.7  

2015 ANNUAL  106.5       117.8      110.6      114.5      103.6      107.5      111.5      109.2  

2015 IV      106.3       118.5      111.4      115.9      104.4      109.0      110.3      109.5  
     III     107.0       118.2      110.5      115.0      103.8      107.5      112.1      109.4  
     II      106.4       117.7      110.6      114.2      103.4      107.3      111.8      109.1  
     I       106.1       116.8      110.1      112.9      102.9      106.3      111.8      108.6  

2014 ANNUAL  105.5       114.3      108.3      111.2      100.8      105.4      111.9      108.1  

2014 IV      105.9       116.1      109.7      112.4      101.7      106.1      111.8      108.5  
     III     106.3       115.3      108.5      111.4      100.7      104.8      113.7      108.5  
     II      105.2       113.5      107.9      110.3      100.0      104.9      112.4      108.0  
     I       104.7       112.1      107.1      110.8      100.9      105.8      109.8      107.5  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                  September 1, 2016
r=revised                                                        Source: Bureau of Labor Statistics



Table 3. Manufacturing sector: Labor productivity, hourly compensation, and unit labor costs,
seasonally adjusted.
                                                                             Real
Year              Labor                                       Hourly         hourly          Unit
and               produc-                      Hours          compensa-      compensa-       labor
quarter           tivity        Output         worked         tion (1)       tion (2)        costs
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate (5)

2016 II           -0.4 r         -0.8           -0.4 r          6.3 r          3.7 r          6.7 r
     I             1.3 r          0.6 r         -0.8           -4.8 r         -4.5 r         -6.0 r

2015 ANNUAL        0.3            1.2            0.8            2.5            2.4            2.2  

2015 IV           -1.1           -0.5            0.6            8.2            7.4            9.5  
     III           3.7            1.9           -1.7            4.4            3.0            0.7  
     II            1.5            0.6           -0.9            5.4            2.9            3.8  
     I            -1.7           -1.4            0.3           -1.9            1.0           -0.2  

2014 ANNUAL        0.1            1.7            1.6            2.8            1.1            2.7  

2014 IV           -1.1            2.7            3.9            3.7            4.1            4.9  
     III           1.2            2.8            1.6            3.3            2.4            2.0  
     II            1.9            5.3            3.4           -2.6           -4.5           -4.4  
     I             0.9           -0.3           -1.2           10.4            8.0            9.5  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2016 II            0.9            0.3           -0.6            3.4 r          2.3 r          2.5 r
     I             1.3 r          0.6 r         -0.7            3.2 r          2.1 r          1.8 r

2015 ANNUAL        0.3            1.2            0.8            2.5            2.4            2.2  

2015 IV            0.6            0.1           -0.4            4.0            3.5            3.4  
     III           0.6            1.0            0.4            2.9            2.7            2.3  
     II            0.0            1.2            1.2            2.6            2.6            2.6  
     I             0.1            2.4            2.3            0.6            0.7            0.5  

2014 ANNUAL        0.1            1.7            1.6            2.8            1.1            2.7  

2014 IV            0.7            2.6            1.9            3.6            2.4            2.9  
     III           0.5            2.4            1.9            2.4            0.6            1.8  
     II           -0.4            1.5            2.0            1.8           -0.3            2.2  
     I            -0.5            0.0            0.5            3.3            1.9            3.8  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2016 II          120.3 r        129.0 r        107.2 r        113.6 r        101.8 r         94.5 r
     I           120.4 r        129.2 r        107.4          111.9 r        100.9 r         93.0 r

2015 ANNUAL      119.6          128.8          107.7          110.7          100.2           92.5  

2015 IV          120.0          129.1          107.6          113.3          102.1           94.4  
     III         120.3          129.2          107.4          111.1          100.3           92.3  
     II          119.3          128.6          107.9          109.9           99.5           92.1  
     I           118.8          128.4          108.1          108.4           98.8           91.3  

2014 ANNUAL      119.2          127.4          106.8          107.9           97.8           90.5  

2014 IV          119.3          128.9          108.0          109.0           98.6           91.3  
     III         119.6          128.0          107.0          108.0           97.6           90.2  
     II          119.3          127.1          106.6          107.1           97.0           89.8  
     I           118.7          125.5          105.7          107.8           98.2           90.8  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                  September 1, 2016
r=revised                                                        Source: Bureau of Labor Statistics



Table 4. Durable manufacturing sector: Labor productivity, hourly compensation, and unit labor
costs, seasonally adjusted.
                                                                             Real
Year              Labor                                       Hourly         hourly          Unit
and               produc-                      Hours          compensa-      compensa-       labor
quarter           tivity        Output         worked         tion (1)       tion (2)        costs
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate (5)

2016 II            2.4 r          0.7 r         -1.8 r          5.5 r          2.9 r          3.0 r
     I            -0.4 r         -0.1 r          0.2           -6.4 r         -6.0 r         -6.0 r

2015 ANNUAL        0.0            0.5            0.5            3.0            2.8            2.9  

2015 IV           -2.1           -1.4            0.7            9.4            8.5           11.8  
     III           5.1            2.3           -2.7            3.9            2.5           -1.1  
     II            2.2            0.5           -1.7            5.2            2.6            2.9  
     I            -4.0           -4.0            0.1           -0.4            2.5            3.8  

2014 ANNUAL        0.7            2.8            2.1            2.4            0.7            1.7  

2014 IV           -0.4            1.9            2.3            4.3            4.6            4.7  
     III           0.8            3.7            2.9            3.4            2.5            2.6  
     II            2.1            7.2            4.9           -2.7           -4.6           -4.7  
     I             1.5            0.4           -1.1           10.6            8.2            9.0  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2016 II            1.2 r          0.3           -0.9 r          2.9 r          1.8 r          1.7 r
     I             1.2            0.3           -0.9            2.9 r          1.8 r          1.7  

2015 ANNUAL        0.0            0.5            0.5            3.0            2.8            2.9  

2015 IV            0.2           -0.7           -0.9            4.5            4.0            4.2  
     III           0.7            0.2           -0.5            3.2            3.1            2.5  
     II           -0.4            0.5            0.9            3.1            3.1            3.5  
     I            -0.4            2.1            2.5            1.1            1.2            1.5  

2014 ANNUAL        0.7            2.8            2.1            2.4            0.7            1.7  

2014 IV            1.0            3.3            2.2            3.8            2.6            2.8  
     III           1.0            3.9            2.9            1.7           -0.1            0.7  
     II            0.3            3.0            2.6            1.3           -0.8            0.9  
     I             0.3            1.0            0.7            2.7            1.3            2.4  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2016 II          122.1 r        134.1 r        109.8 r        112.2 r        100.6 r         91.9 r
     I           121.4 r        133.9 r        110.3          110.7 r         99.9 r         91.2 r

2015 ANNUAL      121.1          133.8          110.6          109.8           99.4           90.7  

2015 IV          121.5          133.9          110.2          112.6          101.4           92.6  
     III         122.2          134.4          110.0          110.1           99.4           90.1  
     II          120.7          133.6          110.8          109.0           98.8           90.4  
     I           120.0          133.5          111.2          107.6           98.1           89.7  

2014 ANNUAL      121.0          133.1          110.0          106.7           96.7           88.1  

2014 IV          121.2          134.8          111.2          107.8           97.5           88.9  
     III         121.3          134.2          110.6          106.6           96.4           87.9  
     II          121.1          132.9          109.8          105.8           95.8           87.3  
     I           120.5          130.7          108.5          106.5           97.0           88.4  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                  September 1, 2016
r=revised                                                        Source: Bureau of Labor Statistics



Table 5. Nondurable manufacturing sector: Labor productivity, hourly compensation, and unit labor
costs, seasonally adjusted.
                                                                             Real
Year              Labor                                       Hourly         hourly          Unit
and               produc-                      Hours          compensa-      compensa-       labor
quarter           tivity        Output         worked         tion (1)       tion (2)        costs
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate (5)

2016 II           -4.4 r         -2.6 r          1.9 r          8.0 r          5.4 r         13.0 r
     I             4.0            1.4 r         -2.5           -1.9 r         -1.5 r         -5.6 r

2015 ANNUAL        0.5            1.9            1.5            1.7            1.6            1.3  

2015 IV            0.1            0.6            0.5            6.1            5.2            6.0  
     III           1.5            1.4           -0.1            5.5            4.1            4.0  
     II            0.3            0.7            0.4            6.1            3.5            5.8  
     I             1.0            1.8            0.8           -4.7           -1.8           -5.6  

2014 ANNUAL        0.0            0.6            0.6            3.4            1.8            3.5  

2014 IV           -2.7            3.7            6.6            3.0            3.4            5.8  
     III           2.6            1.9           -0.7            2.9            2.0            0.3  
     II            2.5            3.3            0.8           -2.6           -4.5           -5.0  
     I             0.3           -1.0           -1.3           10.0            7.6            9.7  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2016 II            0.3            0.2 r         -0.1            4.4 r          3.3 r          4.1 r
     I             1.5            1.0           -0.4            3.9 r          2.8 r          2.4 r

2015 ANNUAL        0.5            1.9            1.5            1.7            1.6            1.3  

2015 IV            0.7            1.1            0.4            3.2            2.7            2.4  
     III           0.0            1.9            1.9            2.4            2.3            2.4  
     II            0.3            2.0            1.7            1.8            1.7            1.5  
     I             0.8            2.7            1.8           -0.4           -0.3           -1.2  

2014 ANNUAL        0.0            0.6            0.6            3.4            1.8            3.5  

2014 IV            0.7            2.0            1.3            3.2            2.0            2.6  
     III           0.7            1.0            0.2            3.5            1.8            2.8  
     II           -0.7            0.2            0.8            2.6            0.5            3.3  
     I            -0.9           -0.7            0.2            4.4            2.9            5.3  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2016 II          113.1 r        116.7 r        103.2 r        115.8 r        103.7 r        102.4 r
     I           114.4 r        117.4 r        102.7          113.5 r        102.4 r         99.3 r

2015 ANNUAL      113.0          116.6          103.2          111.7          101.1           98.8  

2015 IV          113.2          117.0          103.3          114.1          102.8          100.7  
     III         113.2          116.8          103.2          112.4          101.5           99.3  
     II          112.8          116.4          103.2          110.9          100.5           98.3  
     I           112.7          116.2          103.1          109.3           99.6           96.9  

2014 ANNUAL      112.5          114.4          101.7          109.7           99.5           97.6  

2014 IV          112.4          115.7          102.9          110.6          100.1           98.3  
     III         113.2          114.7          101.3          109.7           99.2           96.9  
     II          112.5          114.1          101.5          109.0           98.7           96.9  
     I           111.8          113.2          101.3          109.7           99.9           98.1  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                  September 1, 2016
r=revised                                                        Source: Bureau of Labor Statistics



Table 6. Nonfinancial corporate sector: Labor productivity, hourly compensation, unit labor costs,
unit profits, and prices, seasonally adjusted.
                                                     Real
                                           Hourly    hourly            Unit      Total           Implicit
Year         Labor                         compen-   compen-   Unit    nonlabor  unit    Unit    price
and          produc-             Hours     sation    sation    labor   costs     costs   profits deflator
quarter      tivity    Output    worked    (1)       (2)       costs   (6)       (7)     (8)     (4)
---------------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate (5)

2016 II       -2.1      -0.7      1.4       3.7       1.1       5.9      3.4      5.1    -17.0      1.9  
     I         1.3 r     1.9 r    0.6      -1.9 r    -1.6 r    -3.2 r  -12.1     -6.1     30.7 r   -2.0  

2015 ANNUAL    0.9       3.2      2.2       2.9       2.8       2.0      0.6      1.5     -6.6      0.3  

2015 IV       -0.8       2.7      3.6       1.9       1.1       2.7     13.7      6.1    -37.1     -1.0  
     III       1.1       2.6      1.5       1.9       0.6       0.8      0.7      0.8      0.0      0.7  
     II        1.5       2.4      0.9       3.9       1.4       2.3      0.1      1.6    -17.0     -1.3  
     I        -1.2       0.2      1.4       5.8       8.9       7.0      1.2      5.1    -11.6      2.4  

2014 ANNUAL    1.2       3.9      2.7       2.5       0.8       1.3     -0.4      0.7      1.5      0.8  

2014 IV        1.5       4.9      3.4       1.7       2.0       0.2     -1.2     -0.3     -5.5     -1.1  
     III       4.2       7.0      2.7       2.1       1.3      -2.0     -2.1     -2.0     15.0      0.4  
     II        1.1       6.2      5.0      -2.6      -4.5      -3.7     -1.4     -3.0     37.2      2.0  
     I         1.0       2.7      1.6       9.3       6.9       8.1      0.3      5.5    -19.9      1.5  
---------------------------------------------------------------------------------------------------------
                       Percent change from corresponding quarter of previous year

2016 II       -0.1       1.6      1.8       1.4       0.3       1.5      1.0      1.4     -9.1     -0.1  
     I         0.8       2.4      1.6       1.4 r     0.4       0.7      0.2      0.5     -9.1     -0.9  

2015 ANNUAL    0.9       3.2      2.2       2.9       2.8       2.0      0.6      1.5     -6.6      0.3  

2015 IV        0.2       2.0      1.8       3.4       2.9       3.2      3.8      3.4    -17.6      0.2  
     III       0.7       2.5      1.8       3.3       3.2       2.6      0.2      1.8     -8.7      0.2  
     II        1.5       3.6      2.1       3.3       3.3       1.8     -0.5      1.1     -5.5      0.1  
     I         1.4       4.6      3.1       1.7       1.8       0.3     -0.9     -0.1      7.2      0.9  

2014 ANNUAL    1.2       3.9      2.7       2.5       0.8       1.3     -0.4      0.7      1.5      0.8  

2014 IV        1.9       5.2      3.2       2.5       1.3       0.6     -1.1      0.0      4.5      0.7  
     III       1.8       4.8      2.9       2.3       0.6       0.5     -0.7      0.1      6.3      1.0  
     II        0.0       2.8      2.8       1.8      -0.3       1.7      0.5      1.3      2.1      1.4  
     I         0.9       2.9      1.9       3.4       1.9       2.4     -0.2      1.6     -7.0      0.3  
---------------------------------------------------------------------------------------------------------
                                            Indexes 2009=100

2016 II      109.8     125.7    114.5     115.4     103.4     105.1     98.2    102.8    129.5    105.6  
     I       110.3 r   125.9 r  114.1     114.3 r   103.1 r   103.6 r   97.3 r  101.5 r  135.7 r  105.1  

2015 ANNUAL  109.9     124.1    112.9     113.9     103.1     103.7     98.1    101.8    140.2    105.8  

2015 IV      110.0     125.3    114.0     114.9     103.5     104.4    100.5    103.1    126.9    105.6  
     III     110.2     124.5    113.0     114.3     103.2     103.7     97.4    101.6    142.5    105.9  
     II      109.9     123.7    112.5     113.8     103.1     103.5     97.2    101.4    142.5    105.7  
     I       109.5     122.9    112.3     112.7     102.7     102.9     97.2    101.0    149.3    106.1  

2014 ANNUAL  108.9     120.3    110.5     110.7     100.3     101.6     97.5    100.2    150.1    105.5  

2014 IV      109.8     122.9    111.9     111.1     100.6     101.2     96.9     99.8    153.9    105.4  
     III     109.4     121.4    111.0     110.7     100.1     101.1     97.2     99.8    156.1    105.7  
     II      108.3     119.4    110.2     110.1      99.8     101.6     97.7    100.3    150.8    105.6  
     I       108.0     117.6    108.9     110.8     100.9     102.6     98.1    101.1    139.3    105.1  
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                        September 1, 2016
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. Hours and 
compensation data are from the Bureau of Labor Statistics and the Bureau of
Economic Analysis.

RELIABILITY: Productivity and cost measures are regularly revised as more 
complete information becomes available.  The measures are first published 
within 40 days of the close of the reference period; revisions appear 30 days 
later, and second revisions after an additional 60 days.  In the business 
sector, the third publication (second revision) of a quarterly index of 
output per hour of all persons has differed from the initial value by between
1.6 and 1.4 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 first quarter of 2016.
            
      			       Table Footnotes        
   
(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 1978-2015 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 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: September 01, 2016