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Productivity and Costs by Industry: Manufacturing Industries News Release
For release 10:00 a.m. (EDT) Thursday, April 7, 2016 USDL-16-0699
Technical information: (202) 691-5618 • dipsweb@bls.gov • www.bls.gov/lpc
Media contact: (202) 691-5902 • PressOffice@bls.gov
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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Technical Note
Labor Productivity: Labor productivity describes the relationship between real output and the
labor hours involved in its production. These measures show the changes from period to period
in the amount of goods and services produced per hour worked. Although the labor productivity
measures relate output in an industry to hours worked of all persons in that industry, they do
not measure the specific contribution of labor to growth in output. Rather, they reflect the
joint effects of many influences, including changes in technology; capital investment; utilization
of capacity, energy, and materials; the use of purchased services inputs, including contract
employment services; the organization of production; managerial skill; in addition to the
characteristics and effort of the workforce.
Unit Labor Costs: Unit labor costs represent the cost of labor required to produce one unit of
output. The unit labor cost indexes are computed by dividing an index of nominal industry labor
compensation by an index of real industry output. Unit labor costs also describe the relationship
between compensation per hour and real output per hour (labor productivity). Increases in hourly
compensation increase unit labor costs; increases in labor productivity offset compensation
increases and lower unit labor costs.
Output: Industry output is measured as an annual-weighted index of the changes in the various
products (in real terms) provided for sale outside the industry. Real industry output is usually
derived by deflating nominal sales or values of production using BLS price indexes, but for some
industries it is measured by physical quantities of output. Industry output reflects sectoral
value of production, derived by adjusting shipments for changes in inventories and removing
intra-industry transactions. Industry output measures are constructed primarily using data from
the economic censuses and annual surveys of the Census Bureau, U.S. Department of Commerce, together
with data on price changes primarily from BLS. Data from the Bureau of Economic Analysis, U.S.
Department of Commerce, is utilized in part to construct intra-industry transactions. Manufacturing
industry output for 2015 is constructed with data on industrial production from the Federal Reserve
and manufacturers’ shipments, inventories, and orders from the Census Bureau. Other data sources
include the Energy Information Administration, U.S. Department of Energy; and the U.S. Geological
Survey, U.S. Department of Interior.
Labor Hours: Labor hours reflect annual hours worked by all employed persons in an industry.
Data on industry employment and hours come primarily from the BLS Current Employment Statistics (CES)
survey and Current Population Survey (CPS). CES data on the number of total and production worker
jobs held by wage and salary workers in nonfarm establishments are supplemented with CPS self-employed
and unpaid family worker data to estimate industry employment. Hours worked estimates are derived using
CES and CPS employment, CES data on the average weekly hours paid of production workers, CPS data on
hours of nonproduction, self-employed, and unpaid family workers, and ratios of hours worked to hours
paid based on data from the National Compensation Survey (NCS). For some industries, employment and
hours data are supplemented or further disaggregated using data from the BLS Quarterly Census of
Employment and Wages (QCEW), the Census Bureau, or other sources. Hours worked are estimated separately
for different types of workers and then are directly aggregated; no adjustments for labor composition
are made.
Labor Compensation: Labor compensation, defined as payroll plus supplemental payments, is a measure of
the cost to the employer of securing the services of labor. Payroll includes salaries, wages, commissions,
dismissal pay, bonuses, vacation and sick leave pay, and compensation in kind. Supplemental payments
include both legally required expenditures and payments for voluntary programs. The legally required
portion consists primarily of Federal old age and survivors’ insurance, unemployment compensation,
and workers’ compensation. Payments for voluntary programs include all programs not specifically
required by legislation, such as the employer portion of private health insurance and pension plans.
Industry compensation measures are constructed primarily using data from the economic censuses and
annual surveys of the Census Bureau, U.S. Department of Commerce. The estimates for 2015 are constructed
using data from the BLS Quarterly Census of Employment and Wages (QCEW).
Table 1. Recent labor productivity, unit labor costs, and related data
Industry
2012 NAICS code
2015 Employment (thousands)
Percent change, 2014-2015
Labor Productivity
Unit labor costs
Output
Hours worked
Labor compensation
Mining
Mining
21
789.8
16.5
-10.5
4.2
-10.6
-6.8
Oil and gas extraction
211
193.2
11.4
-6.7
7.4
-3.6
0.2
Oil and gas extraction
2111
193.2
11.4
-6.7
7.4
-3.6
0.2
Mining, except oil and gas
212
204.6
-1.4
4.8
-5.7
-4.4
-1.1
Coal mining
2121
67.8
4.6
2.3
-10.2
-14.2
-8.2
Metal ore mining
2122
42.1
-4.6
6.5
-7.6
-3.1
-1.6
Nonmetallic mineral mining and quarrying
2123
94.7
-3.9
8.2
-0.3
3.7
7.9
Manufacturing
Food
311
1,548.7
-2.4
3.2
0.9
3.3
4.1
Grain and oilseed milling
3112
60.3
-0.9
7.8
-1.0
0.0
6.8
Fruit and vegetable preserving and specialty
3114
170.5
-0.9
10.5
-8.0
-7.1
1.7
Dairy products
3115
136.6
-3.2
2.9
0.6
3.9
3.5
Animal slaughtering and processing
3116
486.5
-0.5
1.3
3.6
4.1
4.9
Bakeries and tortilla products
3118
331.3
-7.3
2.3
1.1
9.1
3.4
Other food products
3119
194.8
-2.5
0.9
2.3
4.9
3.2
Beverages and tobacco products
312
229.8
-1.8
7.5
1.2
3.1
8.8
Beverages
3121
216.5
-4.2
9.0
-0.7
3.7
8.2
Tobacco
3122
13.3
11.3
9.4
4.8
-5.9
14.6
Textile mills
313
124.2
-2.0
2.9
0.0
2.1
2.9
Fiber, yarn, and thread mills
3131
28.6
5.6
0.3
3.0
-2.5
3.4
Fabric mills
3132
61.0
-4.6
3.2
-0.6
4.2
2.6
Textile and fabric finishing mills
3133
34.6
-3.4
4.2
-0.9
2.6
3.2
Textile product mills
314
131.0
-2.7
3.1
-0.3
2.5
2.8
Textile furnishings mills
3141
55.9
-0.5
1.4
-1.2
-0.6
0.2
Other textile product mills
3149
75.1
-4.4
4.6
0.6
5.2
5.3
Apparel
315
158.6
-0.1
-2.8
0.1
0.2
-2.7
Leather and allied products
316
32.9
-8.9
15.6
-5.0
4.4
9.9
Wood products
321
400.8
-0.3
5.3
0.1
0.4
5.4
Sawmills and wood preservation
3211
93.3
7.4
3.3
0.6
-6.2
4.0
Plywood and engineered wood products
3212
75.4
-2.0
0.0
4.3
6.4
4.3
Other wood products
3219
232.1
-2.3
7.5
-0.9
1.4
6.5
Paper
322
373.3
-0.5
2.8
-1.6
-1.1
1.3
Pulp, paper, and paperboard mills
3221
101.8
1.9
0.8
-1.5
-3.4
-0.8
Converted paper products
3222
271.5
-1.5
4.0
-1.6
-0.1
2.4
Printing and related support activities
323
472.8
4.2
-2.1
3.5
-0.7
1.3
Printing and related support activities
3231
472.8
4.2
-2.1
3.5
-0.7
1.3
Petroleum and coal products
324
114.4
7.0
-1.0
4.6
-2.3
3.6
Petroleum and coal products
3241
114.4
7.0
-1.0
4.6
-2.3
3.6
Chemicals
325
822.3
1.7
1.8
2.3
0.6
4.2
Basic chemicals
3251
150.6
0.9
2.9
2.6
1.7
5.6
Resin, rubber, and artificial fibers
3252
95.4
-0.2
0.3
2.2
2.4
2.5
Agricultural chemicals
3253
37.0
11.6
0.5
2.4
-8.3
2.9
Pharmaceuticals and medicines
3254
282.5
3.9
1.5
2.9
-1.0
4.5
Paints, coatings, and adhesives
3255
61.9
7.6
0.9
2.8
-4.5
3.7
Plastics and rubber products
326
688.9
1.2
0.2
3.1
1.9
3.3
Plastics products
3261
554.8
0.7
1.1
2.9
2.2
4.1
Rubber products
3262
134.1
3.1
-3.1
3.9
0.7
0.6
Nonmetallic mineral products
327
411.8
1.9
2.4
3.0
1.1
5.5
Clay products and refractories
3271
48.8
0.7
0.5
3.3
2.6
3.8
Glass and glass products
3272
89.6
2.1
2.3
-1.2
-3.3
1.1
Cement and concrete products
3273
183.5
-0.6
4.9
4.6
5.2
9.7
Lime and gypsum products
3274
14.4
6.0
-7.5
3.0
-2.8
-4.8
Other nonmetallic mineral products
3279
75.5
7.6
-0.1
4.3
-3.1
4.2
Primary metals
331
396.0
-3.0
6.0
-6.4
-3.5
-0.8
Alumina and aluminum production
3313
59.0
-3.8
3.6
-1.5
2.4
2.1
Foundries
3315
125.1
0.8
4.5
-3.9
-4.7
0.3
Fabricated metal products
332
1,486.9
-0.6
2.7
-1.4
-0.8
1.2
Forging and stamping
3321
101.1
-1.1
-1.5
1.9
3.1
0.4
Cutlery and handtools
3322
39.9
-1.4
4.6
-4.6
-3.2
-0.2
Architectural and structural metals
3323
372.8
-3.8
6.0
-1.9
2.0
4.0
Boilers, tanks, and shipping containers
3324
99.3
-0.1
-1.2
0.0
0.1
-1.1
Spring and wire products
3326
44.1
1.4
-1.7
2.5
1.1
0.7
Machine shops and threaded products
3327
381.2
-0.8
3.8
-3.9
-3.1
-0.3
Coating, engraving, and heat treating metals
3328
141.8
7.4
0.4
2.0
-5.0
2.4
Other fabricated metal products
3329
281.9
-0.2
2.0
-1.5
-1.3
0.4
Machinery
333
1,136.0
1.4
3.3
-1.6
-3.0
1.7
Agriculture, construction, and mining machinery
3331
243.0
1.1
3.0
-7.0
-8.1
-4.2
Industrial machinery
3332
113.5
8.0
-2.9
8.8
0.8
5.7
HVAC and commercial refrigeration equipment
3334
129.8
2.7
-0.5
1.9
-0.8
1.5
Metalworking machinery
3335
186.5
-0.1
4.6
-2.7
-2.6
1.8
Computer and electronic products
334
1,053.8
3.5
-0.9
3.7
0.2
2.8
Semiconductors and electronic components
3344
368.6
3.4
-2.2
3.8
0.3
1.5
Electronic instruments
3345
400.5
0.6
1.1
3.5
2.9
4.6
Electrical equipment and appliances
335
384.1
-5.1
3.5
-2.2
3.0
1.2
Electric lighting equipment
3351
45.9
3.8
-0.3
1.0
-2.7
0.7
Household appliances
3352
62.6
-10.4
10.5
-6.6
4.2
3.2
Electrical equipment
3353
145.1
-5.9
3.0
-4.0
2.0
-1.1
Other electrical equipment and components
3359
130.5
-1.5
-0.8
4.1
5.8
3.3
Transportation equipment
336
1,607.1
0.4
-1.5
3.2
2.8
1.7
Motor vehicles
3361
202.2
-0.5
-6.9
4.6
5.2
-2.6
Motor vehicle parts
3363
563.7
1.7
-2.1
7.5
5.7
5.2
Aerospace products and parts
3364
488.8
1.0
0.2
0.0
-1.0
0.2
Ship and boat building
3366
140.1
-4.1
5.2
-5.1
-1.0
-0.1
Furniture and related products
337
409.5
4.2
2.0
3.5
-0.7
5.6
Household and institutional furniture
3371
263.1
3.7
2.4
3.2
-0.6
5.6
Other furniture related products
3379
36.3
7.6
2.1
3.8
-3.6
6.0
Miscellaneous manufacturing
339
658.1
-4.0
6.2
-1.4
2.8
4.8
Medical equipment and supplies
3391
326.5
-6.9
7.1
-1.2
6.1
5.8
Table 2. Long run labor productivity, unit labor costs, and related data
United States Department of Labor
