Productivity and Costs by Industry: Selected Service-Providing Industries, 2017

For release 10:00 a.m. (EDT) Thursday, May 17, 2018                                                    USDL-18-0787

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


                                          PRODUCTIVITY AND COSTS BY INDUSTRY
                                     SELECTED SERVICE-PROVIDING INDUSTRIES - 2017


Labor productivity rose in 20 of 28 selected service-providing industries in 2017, the U.S. Bureau of 
Labor Statistics reported today, the same as in 2016. Output increased in 19 industries in 2017, fewer 
than in 2016, while hours increased in more industries.  

Long term measures of productivity and cost through 2016 are available for 58 industries.

Trends in Labor Productivity in 2017

    *  Labor productivity increased in 20 of 28 industries in 2017. Among those with increasing 
       productivity, output grew in 16 industries. 
    *  Hours worked grew in 16 of the 28 industries.
    *  Productivity gains of at least 7.0 percent occurred in 3 industries where output increases 
       coincided with declines in hours worked: amusement parks and arcades (13.7 percent), wireless 
       telecommunications carriers (11.1 percent), and gambling industries (7.9 percent).
    *  Hours worked increased in 7 out of the 8 industries which recorded declines in productivity. Of 
       these, the largest gains in hours worked were in truck, trailer, and RV rental and leasing (6.8 
       percent); couriers and messengers (5.5 percent); and water, sewage and other systems (4.4 percent).

Unit labor costs declined in 9 industries in 2017. Each of the industries with declines in unit labor 
cost also recorded increases in productivity. Increases in labor productivity counter the impact of 
rising hourly compensation on unit labor costs facing employers.

Trends in Unit Labor Costs in 2017

    *  Unit labor costs fell in 9 industries in 2017. 
    *  All unit labor cost declines occurred in industries where productivity rose. 
    *  Each of the industries where productivity fell also recorded an increase in unit labor costs. 
    *  Hourly compensation rose in 24 of the 28 industries measured. 

Long Term Productivity Trends 

    *  Over the long term, productivity rose in 45 out of 58 service-providing industries. For the 
       majority of the industries studied, this period extends from 1987 to 2016. 
    *  Median long term productivity growth for all 58 industries was approximately 1.7 percent 
       per year.
    *  Output increased over the long term in 44 industries while hours worked increased in 37 
       industries. 
    *  Productivity increased in 39 of the 58 industries in the period from 2007 to 2016 that began with 
       a severe recession. Only 36 industries had increases in output and 24 experienced growth in hours 
       worked. 

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* Access more productivity data using the data dashboard,                                                  *
* at https://www.bls.gov/lpc/lpc_by_industry_dashboard.xlsx                                                *
*      - Additional industries and sectors                                                                 *
*      - Detailed data series: indexes of productivity and related measures; rates of change; and          *
*        levels of industry employment, hours worked, nominal value of production, and labor compensation  *
*      - Additional years and long-term data                                                               *
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* Additional information can be obtained by calling the BLS productivity program at (202) 691-5606 or by   *
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* impaired individuals upon request. Voice phone: (202) 691-5200; Federal Relay Service: (800) 877-8339.   *
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Last Modified Date: May 17, 2018