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Productivity and Costs by Industry: Manufacturing and Mining Industries News Release
For release 10:00 a.m. (EDT) Tuesday, May 9, 2017 USDL-17-0445
Technical Information: (202) 691-5618 • productivity@bls.gov • www.bls.gov/lpc
Media Contact: (202) 691-5902 • PressOffice@bls.gov
PRODUCTIVITY AND COSTS BY INDUSTRY:
MANUFACTURING AND MINING INDUSTRIES -- 2016
Labor productivity rose in 31 of the 90 NAICS 4-digit manufacturing and mining industries in 2016, the U.S.
Bureau of Labor Statistics reported today. This was fewer than in 2015 when labor productivity rose in 41
industries. Output and hours worked also increased in fewer industries in 2016 than in the previous year.
Unit labor costs, which reflect the total labor costs required to produce a unit of output, rose in 64 of the 86
NAICS 4-digit manufacturing industries and in 1 of the 4 mining industries. Eighteen industries with
productivity increases recorded declines in unit labor costs.
Trends in Labor Productivity in 2016
Manufacturing
* Labor productivity increased in 5 of the 21 NAICS 3-digit manufacturing industries in 2016,
as output increased in only 2 industries, and hours worked rose in 11 industries.
* Labor productivity increased in 27 of the 86 NAICS 4-digit manufacturing industries in 2016,
as output increased in 31 industries, and hours worked fell in 44 industries.
* Productivity rose fastest in the agricultural chemicals industry, where output increased by 7.7
percent and hours worked declined 5.9 percent.
Mining
* Labor productivity increased in both measured NAICS 3-digit mining industries in 2016.
Productivity rose 5.4 percent in oil and gas extraction and rose 4.3 percent in mining, except
oil and gas. Both industries saw output decline less than hours worked.
* Productivity increased in all 4 of the NAICS 4-digit mining industries measured. Output fell
in 3 of the industries, but hours worked declined at an even greater rate.
Trends in Unit Labor Costs in 2016
Manufacturing
* Employers face increased unit labor costs when hourly compensation gains outpace
productivity. For NAICS 3-digit industries, unit labor costs increased in 18 of the 21
manufacturing industries.
* Of the 64 NAICS 4-digit manufacturing industries that had increases in unit labor costs,
productivity growth was negative in almost four-fifths of them.
Mining
* Unit labor costs declined in both measured NAICS 3-digit mining industries as productivity
growth outpaced hourly compensation growth.
* Unit labor costs fell in 3 of the 4 NAICS 4-digit mining industries measured, all 3 of which
posted declining hourly compensation and increasing labor productivity. The only industry
with an increase in unit labor costs was nonmetallic mineral mining and quarrying, which
had more growth in hourly compensation than in productivity.
Long-term trends in Labor Productivity and Unit Labor Costs
Over the entire 1987-2016 period, labor productivity rose in 85 of the 90 manufacturing and
mining industries measured.
* Productivity growth in the 1987-2016 period was associated with output rising in 59
manufacturing and mining industries, while hours worked increased in only 13.
* Productivity increased in 48 industries in the more recent 2007-2016 period that
included a severe recession.
* The 2007-2016 productivity increases are predominantly the result of a decline in hours
worked, rather than an increase in output, as 72 industries experienced decreasing hours
worked in this period compared to 19 industries that documented increasing output.
From 1987 to 2016, unit labor costs increased in 79 of the 90 manufacturing and mining industries.
* Among the NAICS 4-digit industries, unit labor costs fell in 11 of the 86 manufacturing
industries from 1987 to 2016. None of the 4 mining industries saw declines in unit labor costs.
* From 2007 to 2016, unit labor costs decreased in 10 of the 86 manufacturing industries.
Computer and peripheral equipment was the only industry with declines in both labor
productivity and unit labor costs, as hourly compensation fell faster than productivity. In mining,
oil and gas extraction saw a decline in unit labor costs while the other 3 industries had gains.
Computer and peripheral equipment had the largest productivity gains and the largest unit labor cost
declines during the 1987 to 2007 period, as well as for the whole 1987 to 2016 interval. However,
between 2007 and 2016, magnetic media manufacturing and reproducing posted the greatest
productivity growth, while leather and hide tanning and finishing saw the sharpest drop in unit labor
costs.
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* - Detailed data series: indexes of productivity and related measures; rates of change; and *
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* - Additional years and long-term data *
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* Additional information can be obtained by calling the BLS productivity program at (202) 691-5618 or by *
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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; the characteristics and effort of the workforce; and managerial skill.
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 worked (hourly compensation) and real output per hour worked (labor productivity). When
hourly compensation growth outpaces productivity, unit labor costs increase. Alternatively, when
productivity growth exceeds hourly compensation, unit labor costs decrease.
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 at the U.S. Department of Commerce is used in part to construct
intra-industry transactions. Other data sources include the Energy Information Administration at the
U.S. Department of Energy and the U.S. Geological Survey at the U.S. Department of the Interior.
Manufacturing industry output for 2016 is constructed with data on industrial production from the
Federal Reserve and BLS price indexes.
Labor Hours: Labor hours are measured as 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 data on self-employed and unpaid family workers 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 BLS QCEW and the economic censuses of the Census Bureau at the U.S. Department of Commerce.
Table 1. Recent labor productivity, unit labor costs, and related data
Industry
2012 NAICS code
2016 Employment (thousands)
Percent change, 2015-2016
Labor productivity
Unit labor costs
Output
Hours worked
Labor compensation
Mining
Mining
21
644.5
17.5
-15.2
-4.4
-18.6
-18.9
Oil and gas extraction
211
180.5
5.4
-6.2
-4.2
-9.1
-10.1
Oil and gas extraction
2111
180.5
5.4
-6.2
-4.2
-9.1
-10.1
Mining, except oil and gas
212
186.3
4.3
-6.2
-4.9
-8.8
-10.8
Coal mining
2121
50.5
9.5
-10.3
-19.6
-26.6
-27.9
Metal ore mining
2122
39.9
4.7
-7.0
-0.9
-5.4
-7.9
Nonmetallic mineral mining and quarrying
2123
95.9
2.0
0.3
4.4
2.3
4.7
Manufacturing
Food
311
1,589.1
-3.5
6.3
-0.3
3.3
5.9
Animal food
3111
58.4
-2.7
8.3
-5.7
-3.0
2.1
Grain and oilseed milling
3112
59.8
0.4
-0.2
2.4
2.0
2.3
Sugar and confectionery products
3113
78.0
-3.1
13.2
-6.0
-2.9
6.4
Fruit and vegetable preserving and specialty
3114
175.2
-8.0
4.9
-1.5
7.1
3.3
Dairy products
3115
141.6
-1.2
7.0
-1.9
-0.7
5.0
Animal slaughtering and processing
3116
499.7
-2.6
5.1
1.0
3.7
6.2
Seafood product preparation and packaging
3117
39.9
-9.4
-4.0
5.2
16.1
1.0
Bakeries and tortilla products
3118
327.4
-0.9
9.7
-2.9
-2.0
6.5
Other food products
3119
209.1
-8.5
7.3
3.5
13.2
11.1
Beverages and tobacco products
312
249.6
-10.2
13.4
-4.1
6.8
8.7
Beverages
3121
235.6
-9.7
14.6
-3.3
7.1
10.8
Tobacco
3122
14.0
-7.8
-4.4
-6.3
1.6
-10.5
Textile mills
313
119.3
6.6
2.7
-1.9
-8.0
0.7
Fiber, yarn, and thread mills
3131
29.6
6.7
0.4
0.5
-5.8
0.9
Fabric mills
3132
55.9
10.5
2.1
0.2
-9.4
2.3
Textile and fabric finishing mills
3133
33.8
0.4
5.5
-7.0
-7.4
-1.9
Textile product mills
314
133.2
-3.4
5.4
-0.7
2.8
4.7
Textile furnishings mills
3141
58.4
-2.0
6.9
-1.1
0.9
5.8
Other textile product mills
3149
74.8
-4.4
3.9
-0.2
4.4
3.7
Apparel
315
148.9
-1.0
13.9
-11.4
-10.6
0.9
Apparel knitting mills
3151
12.7
13.5
1.5
-4.4
-15.8
-2.9
Cut and sew apparel
3152
122.7
-1.4
15.9
-12.8
-11.5
1.1
Accessories and other apparel
3159
13.5
-13.2
11.9
-8.3
5.6
2.6
Leather and allied products
316
33.1
-5.0
5.8
-7.2
-2.3
-1.8
Leather and hide tanning and finishing
3161
5.2
-3.5
-22.8
-9.1
-5.8
-29.8
Footwear
3162
13.8
-3.3
9.6
-4.8
-1.6
4.3
Other leather products
3169
14.1
-6.3
20.6
-8.0
-1.9
10.9
Wood products
321
414.4
-0.8
4.7
2.1
2.9
6.8
Sawmills and wood preservation
3211
93.7
3.4
-0.6
3.2
-0.3
2.5
Plywood and engineered wood products
3212
78.7
-0.9
7.4
2.1
3.0
9.6
Other wood products
3219
242.0
-2.8
6.4
1.3
4.3
7.8
Paper
322
371.7
-0.4
2.7
-1.8
-1.4
0.8
Pulp, paper, and paperboard mills
3221
100.7
4.5
-0.2
-1.2
-5.5
-1.3
Converted paper products
3222
271.0
-2.4
4.2
-2.1
0.3
2.0
Printing and related support activities
323
466.3
2.2
2.8
-0.3
-2.5
2.5
Printing and related support activities
3231
466.3
2.2
2.8
-0.3
-2.5
2.5
Petroleum and coal products
324
112.9
4.3
-3.1
4.3
0.0
1.1
Petroleum and coal products
3241
112.9
4.3
-3.1
4.3
0.0
1.1
Chemicals
325
822.7
1.0
-0.8
-0.7
-1.7
-1.6
Basic chemicals
3251
148.8
2.0
-0.2
0.7
-1.3
0.5
Resin, rubber, and artificial fibers
3252
92.5
7.2
2.4
1.0
-5.8
3.4
Agricultural chemicals
3253
35.9
14.5
-11.0
7.7
-5.9
-4.1
Pharmaceuticals and medicines
3254
287.1
-4.0
-2.1
-3.3
0.8
-5.3
Paints, coatings, and adhesives
3255
64.2
0.6
0.8
0.8
0.1
1.6
Soaps, cleaning compounds, and toiletries
3256
110.8
1.6
6.4
-2.3
-3.9
4.0
Other chemical products and preparations
3259
83.4
-0.8
5.1
-3.1
-2.3
1.8
Plastics and rubber products
326
702.4
-2.6
7.9
-2.2
0.4
5.5
Plastics products
3261
568.4
-2.9
8.8
-2.3
0.7
6.4
Rubber products
3262
134.0
-1.1
4.3
-1.9
-0.8
2.3
Nonmetallic mineral products
327
426.4
-2.4
6.6
-0.3
2.2
6.3
Clay products and refractories
3271
46.4
7.1
2.5
-1.5
-8.0
0.9
Glass and glass products
3272
92.2
-0.6
8.7
-2.7
-2.0
5.8
Cement and concrete products
3273
194.5
-6.4
7.0
0.3
7.2
7.3
Lime and gypsum products
3274
14.6
5.6
2.9
4.3
-1.2
7.3
Other nonmetallic mineral products
3279
78.7
-1.6
7.0
-0.1
1.5
6.9
Primary metals
331
379.1
4.1
-3.9
-0.2
-4.1
-4.2
Iron and steel mills and ferroalloys
3311
84.0
8.0
-11.1
2.3
-5.3
-9.1
Steel products from purchased steel
3312
56.5
11.7
-6.3
1.5
-9.1
-4.9
Alumina and aluminum production
3313
59.4
-6.8
5.7
-6.1
0.8
-0.7
Other nonferrous metal production
3314
61.5
4.1
-3.8
3.5
-0.5
-0.4
Foundries
3315
117.7
-1.9
4.7
-7.1
-5.2
-2.6
Fabricated metal products
332
1,456.4
-2.0
4.5
-4.3
-2.3
-0.1
Forging and stamping
3321
98.5
-0.1
0.8
-1.9
-1.8
-1.2
Cutlery and handtools
3322
40.1
-6.2
3.1
-3.5
2.9
-0.5
Architectural and structural metals
3323
373.5
-5.8
9.9
-6.2
-0.4
3.1
Boilers, tanks, and shipping containers
3324
92.7
6.5
3.9
-5.0
-10.8
-1.3
Hardware
3325
25.6
-6.6
4.3
-2.8
4.1
1.4
Spring and wire products
3326
43.3
-2.9
4.3
-2.9
0.0
1.3
Machine shops and threaded products
3327
369.8
-2.1
4.0
-6.3
-4.3
-2.6
Coating, engraving, and heat treating metals
3328
138.1
2.6
-2.7
3.0
0.4
0.2
Other fabricated metal products
3329
274.8
-2.4
4.4
-4.4
-2.0
-0.2
Machinery
333
1,091.5
-0.7
0.1
-3.7
-3.0
-3.6
Agriculture, construction, and mining machinery
3331
209.9
5.0
-5.1
-9.0
-13.4
-13.7
Industrial machinery
3332
115.6
-1.4
1.3
1.9
3.4
3.3
Commercial and service industry machinery
3333
90.6
1.7
-4.9
4.1
2.4
-1.0
HVAC and commercial refrigeration equipment
3334
129.3
-0.6
1.0
2.5
3.1
3.5
Metalworking machinery
3335
183.8
-3.0
5.6
-5.6
-2.6
-0.3
Turbine and power transmission equipment
3336
99.1
-8.9
10.8
-12.0
-3.3
-2.5
Other general purpose machinery
3339
263.2
0.6
-2.7
-0.5
-1.1
-3.1
Computer and electronic products
334
1,058.5
-3.7
8.9
-3.6
0.1
5.0
Computer and peripheral equipment
3341
164.2
2.8
3.3
5.1
2.3
8.6
Communications equipment
3342
87.7
1.0
-1.1
-0.3
-1.2
-1.4
Audio and video equipment
3343
21.1
-17.7
9.6
-9.0
10.5
-0.4
Semiconductors and electronic components
3344
371.0
-4.9
13.3
-5.4
-0.6
7.2
Electronic instruments
3345
397.8
-4.3
7.9
-4.8
-0.5
2.8
Magnetic media manufacturing and reproducing
3346
16.7
-7.7
-5.9
-2.1
6.1
-7.9
Electrical equipment and appliances
335
387.0
-1.5
2.4
-0.5
1.0
1.9
Electric lighting equipment
3351
49.0
-1.7
0.7
6.9
8.8
7.7
Household appliances
3352
64.1
-5.7
-1.6
2.0
8.2
0.4
Electrical equipment
3353
140.7
-2.2
7.6
-7.3
-5.2
-0.2
Other electrical equipment and components
3359
133.2
-0.9
1.6
1.4
2.3
3.1
Transportation equipment
336
1,632.8
-3.9
6.1
-2.0
2.0
4.1
Motor vehicles
3361
209.1
-9.6
14.4
-2.1
8.3
11.9
Motor vehicle bodies and trailers
3362
152.3
0.0
6.7
0.7
0.7
7.5
Motor vehicle parts
3363
583.5
-1.0
3.4
2.5
3.5
6.0
Aerospace products and parts
3364
490.1
-5.0
6.3
-4.6
0.4
1.4
Railroad rolling stock
3365
27.0
3.2
-9.8
-2.1
-5.1
-11.6
Ship and boat building
3366
136.0
-0.8
5.2
-6.0
-5.2
-1.1
Other transportation equipment
3369
34.8
-5.2
2.3
-1.2
4.2
1.0
Furniture and related products
337
408.6
-2.3
8.8
-1.5
0.8
7.2
Household and institutional furniture
3371
261.0
-1.0
6.7
0.2
1.2
6.9
Office furniture and fixtures
3372
109.7
-2.8
11.9
-3.3
-0.4
8.3
Other furniture related products
3379
37.9
-5.4
9.0
-3.6
1.9
5.1
Miscellaneous manufacturing
339
647.7
-3.6
2.9
-1.3
2.3
1.6
Medical equipment and supplies
3391
317.1
-2.5
-0.5
0.8
3.4
0.3
Other miscellaneous manufacturing
3399
330.6
-5.2
8.1
-4.1
1.2
3.7
Table 2. Long run labor productivity, unit labor costs, and related data
United States Department of Labor
