Productivity and Costs by Industry: Selected Service-Providing Industries, 2016

For release 10:00 a.m. (EDT) Thursday, May 18, 2017                                                    USDL-17-0619

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
				                SELECTED SERVICE-PROVIDING INDUSTRIES -- 2016


Labor productivity rose in 17 of 28 selected service-providing industries in 2016, the U.S. Bureau of Labor 
Statistics reported today. This was greater than in 2015, when labor productivity increased in 14 of 28 industries. 
In 2016, output and hours increased in fewer industries than in 2015.  

Unit labor costs declined in 5 industries in 2016. Each of the industries with declines in unit labor costs also 
recorded increases in productivity. Increases in labor productivity counter the impact of rising hourly compensation 
on unit labor costs facing employers.

Long term measures of productivity and cost through 2015 are available for 58 industries; included for the first 
time are veterinary services.

Trends in Labor Productivity in 2016

*	Labor productivity increased in 17 of 28 industries in 2016. Among those with increasing productivity, output 
    grew in 13 industries. 
*	Hours worked grew in 15 of the 28 industries.
*	Productivity gains of at least 8.0 percent occurred in 3 industries where output increases coincided with declines 
    in hours worked: cable and other subscription programming (19.1 percent), wireless telecommunications carriers 
	(12.7 percent), and accounting and bookkeeping services (8.8 percent).
*	Three industries recorded productivity declines despite output gains of at least 3.0 percent because of larger 
	increases in hours worked: warehousing and storage (-8.8 percent); couriers and messengers (-1.5 percent); 
	and truck, trailer, and RV rental and leasing (-1.4 percent).

Trends in Unit Labor Costs in 2016

*	Unit labor costs fell in 5 industries in 2016. 
*	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 labor compensation rose in all but 1 of the 28 industries measured. 

Long Term Productivity Trends 

*	Over the long term, productivity rose in 45 service-providing industries. For the majority of the industries 
    studied, this period extends from 1987 to 2015. 
*	Median long term productivity growth for all 58 industries was approximately 1.6 percent per year.
*	Output increased over the long term in 44 industries while hours worked increased in 38 industries. 
*	Productivity increased in 36 of the 58 industries in the more recent 2007 to 2015 period that began with a 
	severe recession. Only 35 industries had increases in output and 23 experienced growth in hours worked.
*	Veterinary services is published for the first time in this release. Productivity in this industry increased 
    by 0.9 percent from 2014 to 2015.

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* Find data at www.bls.gov/lpc for:                                                                        *
*      - 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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* Questions?                                                                                               *
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* Additional information can be obtained by calling the BLS productivity program at (202) 691-5618 or by   *
* sending an email to productivity@bls.gov. Information in this release will be made available to sensory  *
* impaired individuals upon request. Voice phone: (202) 691-5200; Federal Relay Service: (800) 877-8339.   *
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Last Modified Date: May 18, 2017