For release 10:00 a.m. (ET) Thursday, April 27, 2023 USDL-23-0797
Technical information: (202) 691-5606 * productivity@bls.gov * www.bls.gov/productivity
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PRODUCTIVITY AND COSTS BY INDUSTRY
MANUFACTURING AND MINING INDUSTRIES – 2022
Labor productivity declines were widespread among manufacturing industries in 2022, with
decreases in 66 of the 86 four-digit NAICS manufacturing industries, the U.S. Bureau of Labor
Statistics reported today. Of the 51 industries in durable manufacturing, 37 had productivity
decreases in 2022 led by a decline of 11.7 percent in the motor vehicle industry. Nondurable
manufacturing also had widespread declines in 2022 with productivity falling in 29 of 35
industries, led by a 16.9-percent decline in the cut and sew apparel industry. Productivity
fell in 3 of the 5 mining industries in 2022 with the greatest decrease occurring in the coal
mining industry (-12.2 percent).
Increases in hours worked were widespread among manufacturing and mining industries in 2022.
Hours worked rose in 79 of the 91 industries in 2022. Forty-one industries increased both
output and hours worked in 2022. Within this set of industries, just over a third had rising
labor productivity.
Labor Productivity Trends in Three-Digit NAICS Industries, 2022
Manufacturing
* Labor productivity decreased in 19 of the 21 three-digit NAICS manufacturing
industries in 2022. All 21 industries had growth in hours worked.
* Output increased in 11 industries. Four industries had increases of over 3.0 percent
in both output and hours worked.
* The petroleum and coal products industry had the largest productivity gain
(+3.3 percent).
* Apparel had the largest productivity decline (-15.2 percent).
Mining
* Labor productivity declined in 2 of the 3 three-digit NAICS mining industries in 2022.
* The productivity gain of 6.3 percent in support activities for mining was caused by
output increasing 23.8 percent while hours worked rose 16.5 percent.
* Increases in hours worked outpaced output growth in both oil and gas extraction and
mining, except oil and gas.
Trends in Unit Labor Costs in 2022
Unit labor costs reflect the total labor costs required to produce a unit of output. Unit labor
costs increase when hourly compensation growth exceeds productivity growth.
Manufacturing
* In manufacturing, unit labor costs increased in all 21 three-digit NAICS industries
in 2022. Ten industries had growth of unit labor costs greater than 10.0 percent, and
each of these industries had declining labor productivity.
* Unit labor costs increased in 82 out of 86 four-digit NAICS manufacturing industries.
Nearly every manufacturing industry recorded growth in labor compensation in 2022,
with the only decline occurring in audio and video equipment.
Mining
* Unit labor costs increased in all 3 three-digit NAICS mining industries. The greatest
growth in unit labor costs occurred in oil and gas extraction (+10.3 percent), which
also had the largest drop in labor productivity in 2022 (-6.9 percent).
2019 to 2022 Trends
Productivity increased in half of the NAICS four-digit manufacturing industries from 2019 to
2022. Over this period, four of the five NAICS four-digit mining industries experienced
productivity growth. Note that the percent changes referring to periods of more than one year
in this section and the following section are compound annual growth rates.
Manufacturing
* The two industries with the greatest gains in productivity from 2019 to 2022 were
audio and video equipment (+12.4 percent per year) and metalworking machinery (+9.6
percent per year). The largest productivity decline occurred in the iron and steel
mills and ferroalloys industry (-7.7 percent).
* Output increased in just under half of the NAICS four-digit manufacturing industries
from 2019 to 2022. Audio and video equipment manufacturing was the industry with the
greatest output growth (+8.7 percent per year) while the largest decline occurred in
the iron and steel mills and ferroalloys industry (-10.1 percent).
* Hours worked fell in 51 out of 86 NAICS four-digit manufacturing industries from 2019
to 2022. Apparel knitting mills recorded the largest drop in hours worked (-9.9
percent per year). However, three industries had growth in hours worked greater than
5.0 percent over this period: other transportation equipment (+8.2 percent), beverages
(+7.2 percent), and motor vehicles (+7.0 percent).
Mining
* In 2022, hours worked remained below pre-pandemic levels in all five of the NAICS
four-digit mining industries. The largest decline in hours worked occurred in support
activities for mining which decreased by 7.9 percent per year from 2019 to 2022.
* Output decreased from 2019 to 2022 in four mining industries. The greatest drop in
output occurred in coal mining which fell by 6.6 percent per year. Only nonmetallic
mineral mining and quarrying returned to its pre-pandemic level of output with an
average increase of 0.3 percent from 2019 to 2022.
Long-Term Trends in Labor Productivity and Unit Labor Costs
Labor Productivity
* Over the entire 1987-2022 period, labor productivity rose in 82 of the 91 manufacturing
and mining industries. Output rose in 50 industries while hours worked increased in
only 19. In the 19 industries where hours worked increased, they rose at a slow pace,
0.7 percent per year on average.
* During the 2007-2019 period, productivity increased in 35 industries. Of these
industries, only five had simultaneous growth in output as well as hours worked. Oil
and gas extraction had the greatest average growth in output over this period (+7.1
percent per year).
* In the most recent 2019-2022 period, productivity increased in 47 industries. Hours
worked grew in 33 industries which is more than the other selected time periods. Other
transportation had the highest average growth in hours worked from 2019 to 2022
(+8.2 percent).
Unit Labor Costs
* From 1987 to 2022, unit labor costs increased in 81 of the 86 four-digit NAICS
manufacturing industries and in all five mining industries.
* In both the 2007-2019 and 2019-2022 time periods, unit labor costs increased in 82 out
of 86 manufacturing industries, but in just 3 of the 5 mining industries. From 2007 to
2019, unit labor costs rose the most in the resin, rubber, and artificial fibers
industry. From 2019 to 2022, unit labor costs rose the most in the plywood and
engineered wood products industry (+15.0 percent per year).
The computer and peripheral equipment industry recorded the largest productivity gain (+12.4
percent per year) as well as the largest unit labor costs decline (-10.7 percent) during the
1987-2022 period. However, between 2019 and 2022, the audio and video equipment industry posted
the greatest productivity growth (+12.4 percent) and the largest unit labor costs decline
(-15.4 percent).
Additional Information
Measures of hours worked for all industries reflect a change in methods and are revised
historically. The new method of determining hours worked uses all-employee hours data from the
BLS Current Employment Statistics (CES) survey as the main source of data. This is an improvement
upon the prior method which instead used the CES production worker hours data. Another improvement
is the use of BLS Current Population Survey (CPS) data to adjust CES all-employee hours paid to
account for hours worked but not paid, also known as off-the-clock hours. Hours worked data also
now incorporate all-employee based hours-worked-to-hours-paid ratios from the National Compensation
Survey, rather than ratios based only on production workers. For more information on the new hours
worked methodology, see
www.bls.gov/opub/mlr/2022/article/improving-estimates-of-hours-worked-for-us-productivity-measurement.htm.
Manufacturing industry output measures for 2021 and earlier years are constructed primarily using
data from the economic censuses and annual surveys of the U.S. Census Bureau together with data on
price changes primarily from BLS. These measures have been revised due to the release of the 2021
Annual Survey of Manufactures. Manufacturing industry output for 2022 is estimated based on historical
relationships between BLS sectoral output, BLS price indexes, and data on industrial production from
the Federal Reserve Board.
Mining industry output measures are constructed primarily using data from the U.S. Energy Information
Administration and the U.S. Geological Survey's Mineral Commodity Summaries and Mineral Yearbooks. The
data from the U.S. Energy Information Administration are usually revised on a monthly schedule while the
U.S. Geological Survey's publications are released annually.
Access productivity data at www.bls.gov/productivity/tables/labor-productivity-detailed-industries.xlsx
for:
* Additional industries and sectors
* Detailed data series: indexes of productivity and related measures; rates of change; and
levels of industry employment, hours worked, sectoral output, and labor compensation
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