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Economic News Release
PRINT:Print

Productivity and Costs News Release



Transmission of material in this release is embargoed until      USDL-14-0167
8:30 a.m. (EST) Thursday, February 6, 2014

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 2013, Preliminary


Nonfarm business sector labor productivity increased at a 3.2 percent 
annual rate during the fourth quarter of 2013, the U.S. Bureau of 
Labor Statistics reported today. The increase in productivity 
reflects increases of 4.9 percent in output and 1.7 percent in hours 
worked. (All quarterly percent changes in this release are seasonally 
adjusted annual rates.) From the fourth quarter of 2012 to the fourth 
quarter of 2013, productivity increased 1.7 percent as output and 
hours worked rose 3.3 percent and 1.6 percent, respectively. (See 
table A.) Annual average productivity increased 0.6 percent from 2012 
to 2013. (See table C.)

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 nonfarm businesses decreased 1.6 percent in the 
fourth quarter of 2013, as the 3.2 percent increase in productivity 
was larger than a 1.5 percent increase in hourly compensation. Unit 
labor costs fell 1.3 percent over the last four quarters. (See table 
A.) 

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.

Manufacturing sector productivity increased 2.0 percent in the fourth 
quarter of 2013, as output and hours worked increased 6.6 percent and 
4.4 percent, respectively. Productivity increased 3.4 percent in the 
durable goods sector and increased 1.0 percent in the nondurable 
goods sector. Over the last four quarters, manufacturing productivity 
increased 2.1 percent, as output increased 3.3 percent and hours 
increased 1.2 percent. Unit labor costs in manufacturing fell 1.0 
percent in the fourth quarter of 2013 and declined 0.9 percent from 
the same quarter a year ago. (See tables A and 3.) Nonfinancial 
corporate sector productivity decreased 0.5 percent in the third 
quarter of 2013. (See table D.)

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

Table C presents annual averages for the most recent five years for 
the nonfarm business sector and the total manufacturing sector. 
Nonfarm business sector productivity grew 0.6 percent in 2013, as 
output and hours increased 2.3 percent and 1.6 percent, respectively. 
Because productivity grew more slowly than hourly compensation (1.6 
percent), unit labor costs rose in 2013 (1.0 percent). Real hourly 
compensation, which takes into account changes in consumer prices, 
increased 0.2 percent in 2013. In the manufacturing sector, 
productivity increased 2.0 percent from 2012 to 2013, and unit labor 
costs declined 0.8 percent.

Revised measures

Revised and previous measures for the third quarter of 2013 are shown 
in tables B and D and cover the following major sectors: nonfarm 
business, business, manufacturing, and nonfinancial corporations.

In the third quarter of 2013, nonfarm business productivity was 
revised to a 3.6 percent increase due to an upward revision to output; 
hours were unrevised. (See table B.) Unit labor costs for the nonfarm 
business sector fell 2.0 percent in the third quarter, a larger 
decline than previously reported. 

In the manufacturing sector, productivity was unrevised in the third 
quarter of 2013.  Manufacturing unit labor costs were revised down 
slightly, to an increase of 1.2 percent. In the nonfinancial corporate 
sector, productivity declined 0.5 percent in the third quarter of 
2013, a smaller decline than previously reported. (See table D.) 

Quarterly and annual data for all sectors from 2011 to 2013 appear in 
tables 1-6. Full historical measures can be found on the productivity 
and costs home page at www.bls.gov/lpc/#data. 
______________




The revised Productivity and Costs news release for fourth-quarter 2013
is scheduled to be released on Thursday, March 6, 2014 at 8:30 a.m. (EST). 







======================================================================================================
Table A. Preliminary fourth-quarter 2013 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             3.2      1.7      2.6    2.1    2.0      2.1     3.4     3.1    1.0      1.4
Output                   4.9      3.3      4.4    3.7    6.6      3.3     8.8     4.9    4.1      1.6
Hours                    1.7      1.6      1.7    1.6    4.4      1.2     5.2     1.7    3.1      0.2
Hourly 
 compensation            1.5      0.4      1.3    0.4    1.0      1.2     0.7     0.7    1.7      2.1
Real hourly 
 compensation            0.6     -0.9      0.4   -0.8    0.2      0.0    -0.2    -0.6    0.8      0.9
Unit labor
 costs                  -1.6     -1.3     -1.3   -1.6   -1.0     -0.9    -2.7    -2.4    0.7      0.7
======================================================================================================
Table B. Revised and previous measures: third quarter 2013 
Sector            Nonfarm                                             Durable           Nondurable
                  Business         Business         Manufacturing     Manufacturing     Manufacturing
              Revised Previous  Revised Previous  Revised Previous  Revised Previous  Revised Previous
------------------------------------------------------------------------------------------------------
                                Percent change, annual rate, third quarter 2013
                                
Productivity     3.6     3.0      3.4      2.7     -0.1      -0.1      1.0      1.1     -0.8     -1.0
Output           5.4     4.7      5.6      4.9      1.3       1.1      3.2      3.1     -0.8     -1.0
Hours            1.7     1.7      2.2      2.1      1.3       1.2      2.1      1.9      0.0      0.0
Hourly 
 compensation    1.6     1.6      1.2      1.2      1.2       1.3      0.1      0.3      3.2      2.9
Real hourly 
 compensation   -1.0    -1.0     -1.4     -1.4     -1.4      -1.3     -2.5     -2.3      0.5      0.3
Unit labor 
 costs          -2.0    -1.4     -2.1     -1.5      1.2       1.3     -0.9     -0.8      4.0      4.0
=====================================================================================================
Table C. Annual average changes in productivity and related measures: 2009-2013

Sector                            Nonfarm Business                         Manufacturing
                        2009    2010    2011    2012    2013  |  2009   2010    2011    2012     2013
--------------------------------------------------------------|----------------------------------------
                                                              |
Productivity            3.2     3.3     0.5     1.5     0.6   |   0.1    6.3     1.0     1.8      2.0
Output                 -4.3     3.2     2.5     3.7     2.3   | -12.9    6.3     3.1     4.1      2.6
Hours                  -7.2    -0.1     2.0     2.2     1.6   | -13.0   -0.1     2.1     2.3      0.5
Hourly                                                        |
 compensation           1.1     2.1     2.5     2.6     1.6   |   3.5    2.4     1.3     1.9      1.2
Real hourly                                                   |
 compensation           1.5     0.4    -0.7     0.5     0.2   |   3.8    0.7    -1.8    -0.2     -0.2
Unit labor                                                    |
 costs                 -2.0    -1.2     2.0     1.2     1.0   |   3.4   -3.7     0.4     0.1     -0.8
======================================================================================================
Table D. Nonfinancial corporations: revised and previous third-quarter 2013 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, third quarter 2013
Revised        -0.5      1.7       2.2       1.1         -1.5         1.6          2.4          2.1
Previous       -0.7      1.5       2.2       1.1         -1.5         1.8          2.7          2.0
======================================================================================================


  




			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 75 percent of the value of GDP in 2012. 
Nonfarm business, which excludes farming, accounted for about 74 
percent of GDP in 2012.
     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 49 percent of the value 
of GDP in 2012.
     
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: 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: 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 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. 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)
      
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
             Output                            Compen-    compen-               Unit       Implicit
 Year        per hour               Hours      sation     sation      Unit      nonlabor   price
 and         of all                 of all     per hour   per hour    labor     payments   deflator
 quarter     persons     Output     persons      (1)        (2)       costs       (3)        (4)
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)

2013 ANNUAL    1.0         2.5        1.5        1.8        0.3        0.8        2.4        1.5  

2013 IV        2.6         4.4        1.7        1.3        0.4       -1.3        3.1        0.6  
     III       3.4 r       5.6 r      2.2 r      1.2       -1.4       -2.1 r      7.7 r      2.1  
     II        2.0         3.4        1.3        3.9        4.0        1.9       -1.7        0.3  
     I         0.4         1.4        1.0       -4.6       -6.0       -4.9       11.4        1.8  

2012 ANNUAL    1.4         3.6        2.2        2.6        0.5        1.2        2.6        1.8  

2012 IV       -1.9         0.2        2.1       10.2        7.8       12.2      -11.5        1.2  
     III       2.1         3.6        1.4        0.8       -1.2       -1.3        7.4        2.5  
     II        1.3         1.6        0.3        1.9        0.9        0.6        3.9        2.0  
     I         1.3         4.9        3.5        8.8        6.3        7.4       -5.4        1.6  

2011 ANNUAL    0.4         2.4        2.0        2.4       -0.7        2.0        2.3        2.1  

2011 IV        3.3         6.4        2.9       -4.5       -5.9       -7.6       12.4        0.7  
     III      -0.1         1.8        1.9        2.6       -0.3        2.8        3.0        2.9  
     II        1.6         4.1        2.4       -0.7       -5.1       -2.3        9.8        2.7  
     I        -3.3        -1.9        1.4        6.3        1.8       10.0       -8.4        1.6  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2013 ANNUAL    1.0         2.5        1.5        1.8        0.3        0.8        2.4        1.5  

2013 IV        2.1         3.7        1.6        0.4       -0.8       -1.6        5.0        1.2  
     III       0.9 r       2.6 r      1.7 r      2.5        0.9        1.6 r      1.1 r      1.4  
     II        0.6         2.1        1.5        2.4        1.0        1.8        1.0        1.5  
     I         0.5         1.7        1.2        1.9        0.2        1.5        2.4        1.9  

2012 ANNUAL    1.4         3.6        2.2        2.6        0.5        1.2        2.6        1.8  

2012 IV        0.7         2.6        1.8        5.3        3.4        4.6       -1.7        1.8  
     III       2.0         4.1        2.0        1.6       -0.1       -0.4        4.4        1.7  
     II        1.4         3.6        2.2        2.1        0.2        0.6        3.3        1.8  
     I         1.5         4.3        2.7        1.4       -1.4       -0.1        4.7        2.0  

2011 ANNUAL    0.4         2.4        2.0        2.4       -0.7        2.0        2.3        2.1  

2011 IV        0.4         2.5        2.2        0.8       -2.4        0.5        3.9        2.0  
     III      -0.1         1.9        1.9        2.5       -1.2        2.5        2.3        2.4  
     II        0.6         2.5        1.9        2.5       -0.9        1.8        2.6        2.2  
     I         0.6         2.7        2.1        3.8        1.7        3.2        0.1        1.9  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2013 ANNUAL  106.2       112.2      105.7      109.1      100.4      102.7      112.2      106.7  

2013 IV      107.3       114.1      106.4      109.8      100.6      102.3      113.7      107.1  
     III     106.6 r     112.9 r    105.9 r    109.4 r    100.5 r    102.7 r    112.9 r    106.9  
     II      105.7       111.4      105.4      109.1      100.8      103.2      110.8      106.4  
     I       105.2       110.5      105.0      108.1       99.9      102.7      111.3      106.3  

2012 ANNUAL  105.1       109.5      104.1      107.2      100.1      102.0      109.6      105.1  

2012 IV      105.1       110.1      104.7      109.4      101.4      104.0      108.3      105.8  
     III     105.6       110.0      104.2      106.7       99.5      101.1      111.7      105.5  
     II      105.0       109.1      103.8      106.5       99.9      101.4      109.7      104.9  
     I       104.7       108.6      103.7      106.0       99.6      101.3      108.6      104.4  

2011 ANNUAL  103.6       105.6      101.9      104.4       99.6      100.8      106.8      103.3  

2011 IV      104.4       107.3      102.9      103.8       98.1       99.5      110.2      103.9  
     III     103.5       105.7      102.1      105.0       99.6      101.5      107.0      103.8  
     II      103.6       105.2      101.6      104.4       99.7      100.8      106.2      103.0  
     I       103.1       104.2      101.0      104.5      101.0      101.4      103.7      102.4  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   February 6, 2014
r=revised                                                        Source: Bureau of Labor Statistics





Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs, and prices,
seasonally adjusted
                                                          Real
             Output                            Compen-    compen-               Unit       Implicit
 Year        per hour               Hours      sation     sation      Unit      nonlabor   price
 and         of all                 of all     per hour   per hour    labor     payments   deflator
 quarter     persons     Output     persons      (1)        (2)       costs       (3)        (4)
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)

2013 ANNUAL    0.6         2.3        1.6        1.6        0.2        1.0        1.6        1.3  

2013 IV        3.2         4.9        1.7        1.5        0.6       -1.6        4.6        1.1  
     III       3.6 r       5.4 r      1.7        1.6       -1.0       -2.0 r      8.4 r      2.4  
     II        1.8         3.3        1.4        3.8        3.9        2.0       -0.7        0.8  
     I        -1.7        -0.3        1.5       -5.2       -6.6       -3.5        6.8        0.7  

2012 ANNUAL    1.5         3.7        2.2        2.6        0.5        1.2        2.7        1.8  

2012 IV       -1.7         0.7        2.4        9.9        7.5       11.8      -12.1        0.8  
     III       2.5         4.2        1.6        0.7       -1.3       -1.8        7.7        2.2  
     II        1.2         1.6        0.4        1.9        0.9        0.7        4.0        2.1  
     I         1.5         5.0        3.4        9.0        6.5        7.4       -5.5        1.5  

2011 ANNUAL    0.5         2.5        2.0        2.5       -0.7        2.0        1.4        1.7  

2011 IV        2.9         5.9        2.9       -4.6       -5.9       -7.3       13.3        1.1  
     III       0.0         1.7        1.7        3.0        0.0        3.0        2.3        2.7  
     II        1.9         4.7        2.8       -1.1       -5.4       -2.9       10.1        2.4  
     I        -3.2        -2.1        1.2        6.6        2.1       10.2      -10.3        0.9  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2013 ANNUAL    0.6         2.3        1.6        1.6        0.2        1.0        1.6        1.3  

2013 IV        1.7         3.3        1.6        0.4       -0.9       -1.3        4.7        1.3  
     III       0.5 r       2.3 r      1.8        2.4        0.8        1.9 r      0.3 r      1.2  
     II        0.2         1.9        1.7        2.2        0.7        2.0        0.1        1.2  
     I         0.0         1.5        1.5        1.7        0.0        1.6        1.3        1.5  

2012 ANNUAL    1.5         3.7        2.2        2.6        0.5        1.2        2.7        1.8  

2012 IV        0.9         2.8        1.9        5.3        3.3        4.4       -1.8        1.7  
     III       2.0         4.1        2.1        1.6        0.0       -0.4        4.6        1.7  
     II        1.4         3.5        2.1        2.2        0.3        0.8        3.3        1.9  
     I         1.6         4.3        2.7        1.5       -1.3       -0.1        4.8        1.9  

2011 ANNUAL    0.5         2.5        2.0        2.5       -0.7        2.0        1.4        1.7  

2011 IV        0.4         2.5        2.1        0.9       -2.4        0.5        3.4        1.8  
     III       0.2         2.1        1.9        2.6       -1.1        2.4        1.4        2.0  
     II        0.7         2.7        1.9        2.4       -0.9        1.7        1.7        1.7  
     I         0.6         2.7        2.1        4.0        1.8        3.3       -0.9        1.5  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2013 ANNUAL  105.9       112.1      105.9      109.1      100.5      103.0      110.0      105.9  

2013 IV      107.1       114.1      106.5      109.9      100.7      102.6      112.0      106.5  
     III     106.3 r     112.8 r    106.1 r    109.5 r    100.5 r    103.0 r    110.7 r    106.2 r
     II      105.4       111.3      105.6      109.1      100.8      103.5      108.5      105.6  
     I       104.9       110.4      105.2      108.0       99.8      103.0      108.7      105.4  

2012 ANNUAL  105.3       109.7      104.1      107.4      100.3      102.0      108.3      104.6  

2012 IV      105.4       110.5      104.8      109.5      101.5      103.9      106.9      105.2  
     III     105.8       110.3      104.2      106.9       99.7      101.1      110.4      105.0  
     II      105.2       109.2      103.8      106.8      100.1      101.5      108.4      104.4  
     I       104.8       108.7      103.7      106.3       99.8      101.3      107.3      103.8  

2011 ANNUAL  103.8       105.7      101.9      104.6       99.7      100.8      105.5      102.7  

2011 IV      104.5       107.4      102.8      104.0       98.3       99.6      108.9      103.4  
     III     103.7       105.9      102.1      105.2       99.8      101.5      105.5      103.2  
     II      103.7       105.4      101.7      104.4       99.8      100.7      105.0      102.5  
     I       103.2       104.2      101.0      104.7      101.2      101.5      102.5      101.9  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   February 6, 2014
r=revised                                                        Source: Bureau of Labor Statistics





Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
                                                                              Real
                 Output                                        Compen-        compen-
 Year            per hour                      Hours           sation         sation         Unit
 and             of all                        of all          per hour       per hour       labor
 quarter         persons        Output         persons           (1)            (2)          costs
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)

2013 ANNUAL        2.0            2.6            0.5            1.2           -0.2           -0.8  

2013 IV            2.0            6.6            4.4            1.0            0.2           -1.0  
     III          -0.1            1.3 r          1.3 r          1.2 r         -1.4 r          1.2 r
     II            2.8            0.2           -2.5            3.3            3.3            0.4 r
     I             3.8            5.4            1.6           -0.7           -2.1           -4.3  

2012 ANNUAL        1.8            4.1            2.3            1.9           -0.2            0.1  

2012 IV            2.3            2.7            0.4            4.1            1.9            1.8  
     III          -0.3            0.1            0.4           -1.8           -3.8           -1.5  
     II            1.0            2.1            1.1            0.8           -0.1           -0.2  
     I             4.3            8.4            3.9           10.4            7.9            5.9  

2011 ANNUAL        1.0            3.1            2.1            1.3           -1.8            0.4  

2011 IV            0.2            5.2            4.9           -4.8           -6.1           -5.0  
     III           5.0            4.7           -0.3            2.2           -0.7           -2.7  
     II           -3.5           -0.7            2.9           -2.3           -6.6            1.3  
     I             0.7            3.0            2.4            1.2           -3.0            0.6  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2013 ANNUAL        2.0            2.6            0.5            1.2           -0.2           -0.8  

2013 IV            2.1            3.3            1.2            1.2            0.0           -0.9  
     III           2.2            2.4 r          0.2 r          2.0            0.4           -0.2  
     II            2.1            2.1           -0.1            1.2           -0.2           -0.9  
     I             1.7            2.6            0.9            0.6           -1.1           -1.1  

2012 ANNUAL        1.8            4.1            2.3            1.9           -0.2            0.1  

2012 IV            1.8            3.3            1.4            3.3            1.4            1.5  
     III           1.3            3.9            2.6            1.0           -0.7           -0.3  
     II            2.6            5.1            2.4            2.0            0.1           -0.6  
     I             1.4            4.3            2.8            1.2           -1.6           -0.2  

2011 ANNUAL        1.0            3.1            2.1            1.3           -1.8            0.4  

2011 IV            0.6            3.0            2.5           -0.9           -4.1           -1.5  
     III           0.8            2.1            1.2            1.4           -2.3            0.6  
     II           -0.2            2.1            2.3            1.3           -2.0            1.4  
     I             2.6            5.1            2.4            3.6            1.5            1.0  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2013 ANNUAL      111.5          117.0          105.0          107.0           98.5           96.0  

2013 IV          112.1          118.6          105.8          107.6           98.6           96.0  
     III         111.5 r        116.8 r        104.7 r        107.3 r         98.5 r         96.2 r
     II          111.5 r        116.4 r        104.3          107.0           98.9           95.9 r
     I           110.8          116.3          105.0          106.1           98.1           95.8  

2012 ANNUAL      109.2          114.1          104.4          105.7           98.7           96.8  

2012 IV          109.7          114.8          104.6          106.3           98.6           96.9  
     III         109.1          114.0          104.5          105.3           98.2           96.5  
     II          109.2          114.0          104.4          105.7           99.1           96.8  
     I           108.9          113.4          104.1          105.5           99.1           96.9  

2011 ANNUAL      107.3          109.5          102.1          103.8           98.9           96.7  

2011 IV          107.8          111.2          103.1          102.9           97.3           95.5  
     III         107.7          109.8          101.9          104.2           98.8           96.7  
     II          106.4          108.5          102.0          103.6           99.0           97.4  
     I           107.4          108.7          101.2          104.2          100.7           97.1  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   February 6, 2014
r=revised                                                        Source: Bureau of Labor Statistics





Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
                                                                              Real
                 Output                                        Compen-        compen-
 Year            per hour                      Hours           sation         sation         Unit
 and             of all                        of all          per hour       per hour       labor
 quarter         persons        Output         persons           (1)            (2)          costs
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)

2013 ANNUAL        3.0            3.8            0.8            0.8           -0.7           -2.1  

2013 IV            3.4            8.8            5.2            0.7           -0.2           -2.7  
     III           1.0 r          3.2 r          2.1 r          0.1 r         -2.5 r         -0.9 r
     II            4.4 r          1.5 r         -2.8            3.2            3.3           -1.1  
     I             3.7            6.4            2.6           -1.2           -2.7           -4.8  

2012 ANNUAL        4.0            7.0            2.9            1.5           -0.5           -2.3  

2012 IV            3.2            3.8            0.5            4.1            1.9            0.9  
     III           0.3            0.0           -0.3           -2.4           -4.4           -2.7  
     II            3.7            5.0            1.3           -0.6           -1.5           -4.1  
     I             8.5           13.0            4.2           11.6            9.1            2.9  

2011 ANNUAL        2.4            6.3            3.8            0.9           -2.2           -1.5  

2011 IV            1.6            9.5            7.8           -6.3           -7.6           -7.8  
     III           8.1            7.5           -0.6            3.5            0.5           -4.3  
     II           -4.9           -0.2            5.0           -4.2           -8.4            0.8  
     I             2.0            6.9            4.9            0.7           -3.6           -1.3  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2013 ANNUAL        3.0            3.8            0.8            0.8           -0.7           -2.1  

2013 IV            3.1            4.9            1.7            0.7           -0.6           -2.4  
     III           3.1            3.7 r          0.6 r          1.5 r         -0.1 r         -1.5  
     II            2.9            2.9            0.0            0.9           -0.5           -2.0 r
     I             2.7            3.8            1.0           -0.1           -1.7           -2.7  

2012 ANNUAL        4.0            7.0            2.9            1.5           -0.5           -2.3  

2012 IV            3.9            5.3            1.4            3.0            1.1           -0.8  
     III           3.5            6.8            3.2            0.4           -1.3           -3.0  
     II            5.4            8.7            3.1            1.8           -0.1           -3.4  
     I             3.2            7.3            4.1            0.9           -1.9           -2.2  

2011 ANNUAL        2.4            6.3            3.8            0.9           -2.2           -1.5  

2011 IV            1.6            5.9            4.2           -1.7           -4.8           -3.2  
     III           1.8            4.5            2.6            1.2           -2.5           -0.6  
     II            0.5            5.1            4.5            0.1           -3.2           -0.5  
     I             5.7            9.9            3.9            4.1            1.9           -1.6  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2013 ANNUAL      120.8          129.9          107.5          105.8           97.4           87.6  

2013 IV          122.0          132.6          108.7          106.1           97.2           86.9  
     III         121.0 r        129.9 r        107.3 r        105.9 r         97.3 r         87.5 r
     II          120.7 r        128.8 r        106.7          105.9           97.9           87.7 r
     I           119.4          128.4          107.5          105.1           97.1           88.0  

2012 ANNUAL      117.3          125.1          106.7          105.0           98.1           89.5  

2012 IV          118.3          126.4          106.8          105.4           97.8           89.1  
     III         117.4          125.2          106.7          104.3           97.3           88.9  
     II          117.3          125.2          106.7          105.0           98.4           89.5  
     I           116.3          123.7          106.4          105.1           98.8           90.4  

2011 ANNUAL      112.8          116.9          103.6          103.4           98.6           91.6  

2011 IV          113.9          120.0          105.3          102.3           96.7           89.8  
     III         113.5          117.3          103.4          104.0           98.6           91.6  
     II          111.3          115.2          103.5          103.1           98.5           92.6  
     I           112.7          115.2          102.3          104.2          100.7           92.5  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   February 6, 2014
r=revised                                                        Source: Bureau of Labor Statistics





Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
                                                                              Real
                 Output                                        Compen-        compen-
 Year            per hour                      Hours           sation         sation         Unit
 and             of all                        of all          per hour       per hour       labor
 quarter         persons        Output         persons           (1)            (2)          costs
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)

2013 ANNUAL        1.2            1.2            0.0            2.1            0.6            0.9  

2013 IV            1.0            4.1            3.1            1.7            0.8            0.7  
     III          -0.8 r         -0.8 r          0.0            3.2 r          0.5 r          4.0  
     II            0.9           -1.1           -2.1            3.4            3.4            2.5  
     I             4.4            4.3           -0.2            0.2           -1.3           -4.0  

2012 ANNUAL       -0.1            1.1            1.3            2.4            0.3            2.5  

2012 IV            1.4            1.5            0.2            4.1            1.8            2.7  
     III          -1.4            0.2            1.6           -0.4           -2.4            1.0  
     II           -1.9           -1.1            0.8            3.6            2.6            5.5  
     I             0.0            3.4            3.4            8.1            5.6            8.1  

2011 ANNUAL        1.2            0.5           -0.6            1.7           -1.4            0.6  

2011 IV            0.5            0.8            0.3           -2.4           -3.8           -2.9  
     III           2.0            2.2            0.2           -0.1           -2.9           -2.1  
     II           -0.4           -0.8           -0.4            0.9           -3.6            1.3  
     I             1.4           -0.2           -1.6            1.8           -2.5            0.4  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2013 ANNUAL        1.2            1.2            0.0            2.1            0.6            0.9  

2013 IV            1.4            1.6            0.2            2.1            0.9            0.7  
     III           1.5 r          0.9           -0.5            2.7            1.1            1.2  
     II            1.3            1.2           -0.1            1.8            0.4            0.5  
     I             0.6            1.2            0.6            1.8            0.1            1.2  

2012 ANNUAL       -0.1            1.1            1.3            2.4            0.3            2.5  

2012 IV           -0.5            1.0            1.5            3.8            1.8            4.3  
     III          -0.7            0.8            1.5            2.1            0.4            2.8  
     II            0.2            1.3            1.2            2.2            0.3            2.0  
     I             0.6            1.4            0.9            1.5           -1.2            1.0  

2011 ANNUAL        1.2            0.5           -0.6            1.7           -1.4            0.6  

2011 IV            0.9            0.5           -0.4            0.0           -3.2           -0.8  
     III           1.3            0.2           -1.0            1.5           -2.2            0.3  
     II            1.1           -0.1           -1.2            3.0           -0.4            1.8  
     I             1.4            1.4            0.1            2.5            0.3            1.1  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2013 ANNUAL      105.4          106.3          100.8          108.9          100.2          103.3  

2013 IV          105.5          106.9          101.3          109.9          100.6          104.1  
     III         105.3 r        105.8 r        100.5          109.4 r        100.4 r        103.9 r
     II          105.5 r        106.0 r        100.5          108.5          100.3          102.9 r
     I           105.3          106.4          101.0          107.6           99.5          102.3  

2012 ANNUAL      104.2          105.0          100.8          106.6           99.6          102.3  

2012 IV          104.1          105.2          101.1          107.6           99.8          103.3  
     III         103.8          104.8          101.0          106.5           99.3          102.6  
     II          104.1          104.8          100.6          106.6           99.9          102.4  
     I           104.6          105.1          100.4          105.7           99.3          101.0  

2011 ANNUAL      104.3          103.8           99.6          104.1           99.3           99.8  

2011 IV          104.6          104.2           99.6          103.7           98.0           99.1  
     III         104.5          104.0           99.5          104.3           98.9           99.8  
     II          103.9          103.4           99.5          104.3           99.6          100.4  
     I           104.0          103.6           99.6          104.1          100.6          100.0  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   February 6, 2014
r=revised                                                        Source: Bureau of Labor Statistics





Table 6. Nonfinancial corporate sector: Productivity, hourly compensation, unit labor costs, unit profits,
and prices, seasonally adjusted
                                                     Real               Unit
              Output                       Hourly    hourly             non-      Total   Unit   Implicit
 Year         per all-                     compen-   compen-   Unit     labor     unit    pro-   price
 and          employee          Employee   sation    sation    labor    costs     cost    fits   deflator
 quarter      hour     Output   hours       (1)       (2)      costs     (6)      (7)     (8)      (4)
---------------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

2013 III      -0.5 r     1.7 r    2.2       1.1      -1.5       1.6 r    3.1 r    2.1 r    2.4 r    2.1 r
     II        3.3       4.9      1.6       3.7       3.7       0.4     -5.6     -1.6      8.0     -0.3  
     I        -4.1      -1.3      2.9      -6.1      -7.5      -2.1      9.1      1.5      0.3      1.3  

2012 ANNUAL    1.4       3.7      2.3       2.8       0.7       1.4      0.2      1.0      3.8      1.4  

2012 IV        4.5       6.4      1.8       7.6       5.2       3.0     -4.2      0.6      9.6      1.8  
     III      -2.9      -2.0      1.0       0.6      -1.4       3.7      3.0      3.5     -7.4      1.8  
     II        0.9       1.6      0.7       1.2       0.3       0.3      1.1      0.6      5.8      1.3  
     I         5.1       8.9      3.5      11.5       9.0       6.1     -0.6      3.8     -2.2      2.9  

2011 ANNUAL    0.3       3.0      2.8       2.1      -1.0       1.9      0.7      1.5      7.7      2.3  

2011 IV        1.8       4.5      2.7      -4.3      -5.6      -6.0     -1.3     -4.5      0.8     -3.7  
     III      -3.5      -0.7      2.8       1.4      -1.5       5.1      3.2      4.5      7.6      4.9  
     II        2.4       6.4      3.9      -1.8      -6.1      -4.1     -1.8     -3.3     54.1      3.1  
     I         4.2       6.1      1.8       8.9       4.3       4.5     -0.3      2.9    -16.9      0.0  
---------------------------------------------------------------------------------------------------------
                       Percent change from corresponding quarter of previous year

2013 III       0.7       2.9 r    2.1       1.4      -0.1       0.7      0.4 r    0.6 r    5.0 r    1.2  
     II        0.1       1.9      1.8       1.3      -0.1       1.2      0.4      0.9      2.4      1.2  
     I        -0.5       1.1      1.6       0.7      -1.0       1.2      2.1      1.5      1.9      1.6  

2012 ANNUAL    1.4       3.7      2.3       2.8       0.7       1.4      0.2      1.0      3.8      1.4  

2012 IV        1.8       3.6      1.7       5.1       3.2       3.2     -0.2      2.1      1.2      2.0  
     III       1.2       3.2      2.0       2.1       0.4       0.9      0.5      0.8     -0.9      0.5  
     II        1.0       3.5      2.4       2.3       0.4       1.3      0.6      1.0      2.9      1.3  
     I         1.4       4.7      3.2       1.6      -1.2       0.1     -0.2      0.0     13.1      1.7  

2011 ANNUAL    0.3       3.0      2.8       2.1      -1.0       1.9      0.7      1.5      7.7      2.3  

2011 IV        1.2       4.0      2.8       0.9      -2.3      -0.3     -0.1     -0.2      8.5      1.0  
     III      -0.7       2.1      2.7       2.2      -1.5       2.9      1.7      2.5      5.4      2.9  
     II        0.7       3.5      2.8       2.1      -1.2       1.4      0.4      1.0     12.8      2.6  
     I        -0.2       2.6      2.8       3.3       1.1       3.5      0.9      2.6      4.1      2.8  
---------------------------------------------------------------------------------------------------------
                                            Indexes 2009=100

2013 III     107.3 r   115.5 r  107.7 r   108.0 r    99.2 r   100.7 r   98.6 r  100.0 r  149.6 r  105.2 r
     II      107.4     115.0    107.1     107.7      99.5     100.3     97.9     99.5    148.7    104.6  
     I       106.5     113.6    106.7     106.7      98.6     100.2     99.3     99.9    145.9    104.7  

2012 ANNUAL  107.1     112.9    105.4     106.8      99.8      99.7     97.5     99.0    144.2    103.7  

2012 IV      107.6     114.0    105.9     108.4     100.6     100.7     97.2     99.5    145.8    104.4  
     III     106.5     112.2    105.4     106.5      99.3     100.0     98.2     99.4    142.5    103.9  
     II      107.3     112.8    105.2     106.3      99.6      99.1     97.5     98.6    145.3    103.4  
     I       107.0     112.4    105.0     106.0      99.6      99.0     97.2     98.4    143.2    103.1  

2011 ANNUAL  105.7     108.8    103.0     103.9      99.1      98.3     97.4     98.0    139.0    102.3  

2011 IV      105.7     110.0    104.1     103.1      97.5      97.6     97.4     97.5    144.0    102.4  
     III     105.2     108.8    103.4     104.3      98.9      99.1     97.7     98.6    143.8    103.3  
     II      106.2     109.0    102.7     103.9      99.2      97.9     96.9     97.6    141.2    102.1  
     I       105.5     107.3    101.7     104.4     100.8      98.9     97.4     98.4    126.7    101.3  
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                         February 6, 2014
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 1.5 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 2013.

			      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 1978-2012 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: February 06, 2014