Full text of Productivity and Costs : First Quarter 2021, Revised

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USDL 21-0979

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PRODUCTIVITY AND COSTS
First Quarter 2021, Revised
(NOTE: This release was reissued on July 20, 2021, due to errors in the first quarter 2021
estimates of hours worked for the business, manufacturing, and nonfinancial corporate sectors.
The error in hours worked resulted in errors to related measures, including labor productivity.
Estimates in this news release will not be corrected. Corrected data are available at
www.bls.gov/bls/errata/corrected-hours-worked-and-labor-productivity-for-labor-productivityand-costs-2021-Q1.htm.)
Nonfarm business sector labor productivity increased 5.4 percent in the first quarter of 2021, the U.S.
Bureau of Labor Statistics reported today, as output increased 8.6 percent and hours worked increased
3.0 percent. (All quarterly percent changes in this release are seasonally adjusted annual rates.) From the
first quarter of 2020 to the first quarter of 2021, nonfarm business sector labor productivity increased 4.1
percent, reflecting a 1.1-percent increase in output and a 2.9-percent decline in hours worked. (See chart
1 and table A1.)

Unit labor costs in the nonfarm business sector increased at an annual rate of 1.7 percent in the first
quarter of 2021, the combined effect of a 7.2-percent increase in hourly compensation and a 5.4-percent
increase in productivity. Unit labor costs increased 4.1 percent over the last four quarters, as hourly
compensation increased 8.3 percent and productivity increased 4.1 percent. (See chart 2 and table A1.)
BLS calculates 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 productivity tend to reduce them.
Labor productivity, or output per hour, is calculated by dividing an index of real output by an index of
hours worked by all persons, including employees, proprietors, and unpaid family workers. The first
quarter of 2021 is the third consecutive quarter with increases in both output and hours worked,
following historic declines in those measures in the second quarter of 2020. With the 3.0-percent
increase in the first quarter of 2021, the hours worked index is 4.3 percent lower than it was in the fourth
quarter of 2019, the last quarter not affected by the COVID-19 pandemic. Output, however, with the
8.6-percent increase in the first quarter of 2021, is now only 0.5 percent below the level seen in the
fourth quarter of 2019. (See chart 3 and table 2.)
Chart 3. Output and Hours Worked index series, nonfarm business, 2019 Q4 – 2021 Q1
102

Index (2019 Q4=100)

100
98
96
94
92
90

88
86
84
2019 Q4

2020 Q1

2020 Q2

2020 Q3

Output

2020 Q4

2021 Q1

Hours Worked

Manufacturing sector labor productivity decreased 1.7 percent in the first quarter of 2021, as output
increased 1.4 percent and hours worked increased 3.1 percent. Manufacturing productivity increased 1.8
percent from the same quarter a year ago. (See tables A1 and 3.)
Unit labor costs in the total manufacturing sector increased 10.7 percent in the first quarter of 2021,
reflecting an 8.9-percent increase in hourly compensation and a 1.7-percent decrease in productivity.
Manufacturing unit labor costs increased 5.1 percent from the same quarter a year ago. (See tables A1
and 3.)
Following strong growth in the fourth quarter of 2020, manufacturing output and hours worked saw
more modest growth rates in the first quarter of 2021. These measures have not yet fully recovered from
the historic declines of the second quarter of 2020; output and hours remain 2.3 percent and 4.4 percent
below their fourth-quarter 2019 levels, respectively. (See chart 4 and table 3.)

-2-

Chart 4. Output and Hours Worked index series, manufacturing, 2019 Q4 – 2021 Q1
102

Index (2019 Q4=100)

100
98
96
94
92
90

88
86
84
2019 Q4

2020 Q1

2020 Q2

2020 Q3

Output

2020 Q4

2021 Q1

Hours Worked

Durable goods manufacturing productivity increased 1.1 percent in the first quarter of 2021, reflecting a
5.7-percent increase in output and a 4.6-percent increase in hours worked. Nondurable goods
manufacturing productivity decreased 3.7 percent in the first quarter of 2021, as output decreased 3.0
percent and hours worked increased 0.7 percent. (See tables A1, 4, and 5.)
The concepts, sources, and methods used for the manufacturing output series differ from those used in
the business and nonfarm business output series; these output measures are not directly comparable. See
the Technical Notes for a more detailed explanation. (See page 7.)
Preliminary first-quarter 2021 measures were announced today for the nonfinancial corporate sector.
Productivity increased 5.8 percent in the first quarter of 2021 as output increased 8.8 percent and hours
worked increased 2.8 percent. Productivity increased 6.5 percent over the last four quarters, which is the
largest four-quarter increase since a 7.9-percent increase in the first quarter of 2010. Unit profits of
nonfinancial corporations decreased at a 4.7 percent annual rate in the first quarter of 2021 and increased
18.5 percent over the last four quarters, which is the largest four-quarter increase since an 18.8-percent
increase in the first quarter of 2012. (See table 6.)
Revised measures
Measures released today are based on more recent source data than were available for the preliminary
report. Regular updates of source data from the BLS, the Bureau of Economic Analysis (BEA), and the
Board of Governors of the Federal Reserve System are reflected in data for the fourth quarter of 2020
and the first quarter of 2021. Measures of output for the manufacturing sectors incorporate revised
annual benchmark data released May 20 by BLS. As a result, quarterly indexes and percent changes for
output and related measures were subject to revision from first-quarter 2012 to fourth-quarter 2019.

-3-

Table B1 presents previous and revised productivity and related measures for the business, nonfarm
business, and manufacturing sectors for the first quarter of 2021.
In the first quarter of 2021, nonfarm business sector productivity increased 5.4 percent, the same as
previously reported. Output was revised up 0.2 percentage point and hours worked was revised up 0.1
percentage point. Unit labor costs increased 1.7 percent rather than decreasing 0.3 percent as previously
reported, reflecting a 2.1-percentage point upward revision to hourly compensation. In the
manufacturing sector, productivity was revised down from a 0.1-percent increase to a 1.7-percent
decrease, reflecting a 1.0-percentage point downward revision to output and a 0.8-percentage point
upward revision to hours worked. Unit labor costs increased 10.7 percent rather than the preliminary
estimate of 4.6 percent.
Table B2 shows previous and revised productivity and related measures for the business, nonfarm
business, manufacturing, and nonfinancial corporate sectors for the fourth quarter of 2020.
In the fourth quarter of 2020, labor productivity in the nonfarm business sector decreased at the same
3.8-percent rate reported May 6. Hourly compensation was revised up from the previously reported
increase of 1.6 percent to a 9.7-percent increase. As a result, unit labor costs increased 14.0 percent in
the fourth quarter of 2020, rather than increasing 5.6 percent. Total manufacturing sector productivity
was revised down by 0.1 percentage point to a 4.4 percent increase. Hourly compensation was revised
up 13.9 percentage points to a 9.8-percent increase; this led to an upward revision to unit labor costs,
which increased 5.1 percent rather than decreasing 8.2 percent.
In the nonfinancial corporate sector, productivity rose 16.7 percent in the fourth quarter of 2020 rather
than increasing 11.6 percent as previously reported, due solely to an upward revision to output. Annual
average productivity in the nonfinancial corporate sector increased 2.1 percent in 2020, rather than the
preliminary estimate of 1.8 percent.
Complete quarterly and annual data series can be found on the Productivity and Costs home page:
www.bls.gov/lpc/#data.
______________
The preliminary Productivity and Costs news release for second-quarter 2021 is scheduled to be
released on Tuesday, August 10, 2021 at 8:30 a.m. (ET).

-4-

Table A1. Labor productivity growth and related measures - revised first-quarter 2021
(percent change from previous quarter at annual rate and from same quarter a year ago)

Sector
Percent change from:
Nonfarm business Previous quarter
A year ago

Labor
productivity
5.4
4.1

Output
8.6
1.1

Hours
worked
3.0
-2.9

Hourly
compensation
7.2
8.3

Real hourly
compensation
3.3
6.3

Unit labor
costs
1.7
4.1

Business

Previous quarter
A year ago

5.2
4.0

8.3
1.1

2.9
-2.8

7.3
8.3

3.4
6.3

1.9
4.1

Manufacturing

Previous quarter
A year ago

-1.7
1.8

1.4
-0.9

3.1
-2.6

8.9
7.0

5.0
5.0

10.7
5.1

Durable
manufacturing

Previous quarter
A year ago

1.1
4.0

5.7
0.4

4.6
-3.5

11.7
7.1

7.6
5.1

10.4
3.0

Nondurable
manufacturing

Previous quarter
A year ago

-3.7
-1.0

-3.0
-2.2

0.7
-1.2

3.6
6.9

-0.1
4.9

7.6
8.0

Table A2. Labor productivity growth and related measures - preliminary first-quarter 2021
(percent change from previous quarter at annual rate and from same quarter a year ago)

Sector
Nonfinancial
corporate

Percent change from:
Previous quarter
A year ago

Labor
productivity
5.8
6.5

Output
8.8
3.3

Hours
worked
2.8
-3.0

Hourly
compensation
6.7
9.1

Real hourly
compensation
2.8
7.1

Unit labor
costs
0.8
2.4

Table B1. Labor productivity growth and related measures - revised and previously published first-quarter 2021
(percent change from previous quarter at annual rate)

Sector
Nonfarm business

Labor
productivity
Revised
5.4
Previously published
5.4

Output
8.6
8.4

Hours
worked
3.0
2.9

Hourly
compensation
7.2
5.1

Real hourly
compensation
3.3
1.3

Unit labor
costs
1.7
-0.3

Business

Revised
Previously published

5.2
5.4

8.3
8.3

2.9
2.8

7.3
5.1

3.4
1.3

1.9
-0.2

Manufacturing

Revised
Previously published

-1.7
0.1

1.4
2.4

3.1
2.3

8.9
4.6

5.0
0.9

10.7
4.6

Durable
manufacturing

Revised
Previously published

1.1
0.7

5.7
4.6

4.6
3.9

11.7
6.2

7.6
2.4

10.4
5.5

Nondurable
manufacturing

Revised
Previously published

-3.7
0.3

-3.0
0.1

0.7
-0.2

3.6
1.6

-0.1
-2.1

7.6
1.2

-5-

Table B2. Labor productivity growth and related measures - revised and previously published fourth-quarter 2020
(percent change from previous quarter at annual rate)

Sector
Nonfarm business

Labor
productivity
Revised
-3.8
Previously published
-3.8

Output
5.8
5.8

Hours
worked
10.0
10.0

Hourly
compensation
9.7
1.6

Real hourly
compensation
7.1
-0.8

Unit labor
costs
14.0
5.6

Business

Revised
Previously published

-4.5
-4.5

5.8
5.8

10.8
10.8

8.8
0.8

6.2
-1.6

13.9
5.6

Manufacturing

Revised
Previously published

4.4
4.5

12.4
12.4

7.6
7.6

9.8
-4.1

7.2
-6.4

5.1
-8.2

Durable
manufacturing

Revised
Previously published

5.6
5.5

11.9
11.8

6.0
6.0

11.3
-6.0

8.7
-8.2

5.4
-10.9

Nondurable
manufacturing

Revised
Previously published

2.3
2.4

12.9
13.0

10.3
10.3

7.3
-0.4

4.8
-2.8

4.9
-2.8

Revised
Previously published

16.7
11.6

28.8
23.1

10.3
10.3

7.8
0.3

5.3
-2.1

-7.6
-10.1

Nonfinancial
corporate

-6-

TECHNICAL NOTES
Labor Hours
Hours worked data for the labor productivity and cost measures include hours worked 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, counting a person who is employed by two or more establishments at each
place of employment. The CES also provides average weekly paid hours of production and
nonsupervisory workers in these establishments. Weekly paid hours are adjusted to hours worked using
data from the National Compensation Survey (NCS) for 1996 forward and data from the BLS Hours at
Work survey, conducted for this purpose, prior to 1990. Between 1990 and 1995, weekly paid hours are
adjusted to hours at work using a combination of NCS and Hours at Work survey data. 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 to estimate hours worked for farm labor, nonfarm proprietors, and nonfarm
unpaid family workers. Using CPS information on employment and hours worked at primary jobs and
all other jobs, separately, the BLS productivity measures assign all hours worked to the appropriate
industrial sector. Hours 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.
Detailed hours data are presented in the table “Hours Worked in Total U.S. Economy and Subsectors”
on the BLS website (www.bls.gov/lpc/special_requests/us_total_hrs_emp.xlsx).
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 hours
worked. Business output accounted for about 78 percent of the value of GDP in 2019. Nonfarm
business, which excludes farming, accounted for about 77 percent of GDP in 2019.
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 Index 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 indexes 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.
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 50 percent of the value of GDP in 2019.

-7-

Labor Productivity
The measure describes the relationship between real output and the labor time involved in its production.
Measures of labor productivity growth show the changes from period to period in the amount of goods
and services produced per hour worked. 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 employees in domestic
industries 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
These measures describe the relationship between compensation per hour and labor 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 2012=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. A complete historical series of 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 productivity@bls.gov).
For a more detailed explanation of methodology see "Technical Information About the Major Sector
Productivity and Costs Methods" at www.bls.gov/lpc/lpcmethods.pdf.
Information in this release will be made available to sensory-impaired individuals upon request. Voice
phone: 202-691-5200; Federal Relay Service number: 1-800-877-8339.

-8-

Table 1. Business sector: Labor productivity, hourly compensation, unit labor costs, and prices,
seasonally adjusted.
Real
Hourly
hourly
Unit
Implicit
Year
Labor
compencompenUnit
nonlabor
price
and
producHours
sation
sation
labor
payments
deflator
quarter
tivity
Output
worked
(1)
(2)
costs
(3)
(4)
--------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate (5)
2021 I

5.2 r

2020 ANNUAL

2.5

-4.1

-4.5
5.5
10.2
-0.3
1.7

2020 IV
III
II
I
2019 ANNUAL

8.3

2.9 r

7.3 r

3.4 r

1.9 r

8.9 r

-6.5

6.9 r

5.6 r

4.2 r

-4.1 r

0.6

5.8
44.2
-36.8
-6.0

10.8
36.7
-42.6
-5.7

8.8 r
-4.8
23.7
8.9

6.2 r
-9.1
27.6
7.8

13.9 r
-9.7
12.3
9.3

-13.1 r
29.2
-23.8
-9.5

1.9
4.6
-4.3
0.8

2.4

0.7

1.8

1.9

0.9

1.5

3.7

4.7 r

2019 IV
1.5
2.8
1.3
3.4
0.7
1.9
0.4
1.2
III
0.3
2.9
2.6
-0.2
-1.5
-0.5
3.2
1.1
II
2.0
1.3
-0.7
1.3
-2.1
-0.7
8.0
3.0
I
3.8
3.6
-0.2
9.5
8.7
5.5
-6.0
0.4
--------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year
2021 I

4.0

1.1

-2.8

8.3 r

6.3 r

4.1 r

-1.8 r

1.6

2020 ANNUAL

2.5

-4.1

-6.5

6.9 r

5.6 r

4.2 r

-4.1 r

0.6

2020 IV
III
II
I

2.5
4.1
2.8
0.9

-2.5
-3.1
-11.0
0.2

-4.9
-7.0
-13.4
-0.7

8.7 r
7.3
8.6
3.3

7.4 r
6.0
8.1
1.2

6.0 r
3.1
5.6
2.4

-6.2 r
-2.8
-8.1
0.3

0.7
0.5
-0.3
1.5

2019 ANNUAL

1.7

2.4

0.7

3.7

1.8

1.9

0.9

1.5

2019 IV
1.9
2.6
0.7
3.4
1.4
1.5
1.3
1.4
III
1.7
2.3
0.6
2.9
1.2
1.3
1.7
1.5
II
1.8
2.2
0.4
4.2
2.3
2.4
0.3
1.5
I
1.5
2.6
1.0
4.2
2.5
2.6
0.4
1.6
--------------------------------------------------------------------------------------------------Indexes 2012=100
2021 I

112.9 r

122.2 r

108.2 r

133.9 r

116.5 r

118.6 r

105.5 r

112.8 r

2020 ANNUAL

111.0

116.6

105.0

128.5 r

113.8 r

115.8 r

104.6 r

110.9

2020 IV
III
II
I

111.5
112.8
111.3
108.6

119.7
118.1
107.7
120.8

107.4
104.7
96.8
111.2

131.6 r
128.8
130.4
123.7

115.5 r
113.8
116.5
109.6

118.0 r
114.2
117.2
113.8

103.2 r
106.9
100.3
107.4

111.5
111.0
109.8
111.0

2019 ANNUAL

108.3

121.6

112.3

120.3

107.8

111.1

109.1

110.2

2019 IV
108.7
122.7
112.9
121.1
107.6
111.3
110.1
110.8
III
108.3
121.9
112.5
120.1
107.4
110.8
110.0
110.4
II
108.3
121.0
111.8
120.1
107.8
111.0
109.1
110.2
I
107.7
120.6
112.0
119.7
108.4
111.2
107.0
109.4
--------------------------------------------------------------------------------------------------See footnotes following Table 6.
June 3, 2021
r=revised
Source: Bureau of Labor Statistics

-9-

Table 2. Nonfarm business sector: Labor productivity, hourly compensation, unit labor costs, and
prices, seasonally adjusted.
Real
Hourly
hourly
Unit
Implicit
Year
Labor
compencompenUnit
nonlabor
price
and
producHours
sation
sation
labor
payments
deflator
quarter
tivity
Output
worked
(1)
(2)
costs
(3)
(4)
--------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate (5)
2021 I

5.4

2020 ANNUAL

2.5

-4.2

-3.8
4.2
11.2
-0.8
1.8

2020 IV
III
II
I
2019 ANNUAL

8.6 r

3.0 r

7.2 r

3.3 r

1.7 r

8.2 r

-6.6

7.0 r

5.6 r

4.3 r

-4.1 r

0.7

5.8
44.1
-36.8
-6.4

10.0
38.2
-43.2
-5.6

9.7 r
-5.8
24.4
9.0

7.1 r
-10.0
28.4
7.9

14.0 r
-9.6
11.9
9.8

-14.4 r
28.2
-22.3
-10.1

1.3
4.3
-3.6
0.8

2.5

0.7

1.1

1.5

3.7

1.8

1.9

4.3 r

2019 IV
1.6
2.8
1.2
3.5
0.9
1.9
0.3
1.2
III
0.5
2.9
2.4
-0.1
-1.4
-0.6
3.1
1.0
II
1.9
1.2
-0.7
1.2
-2.2
-0.7
8.2
3.0
I
3.9
3.8
0.0
9.3
8.4
5.2
-5.7
0.4
--------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year
2021 I

4.1

1.1

-2.9

8.3 r

6.3 r

4.1 r

-2.0 r

1.5

2020 ANNUAL

2.5

-4.2

-6.6

7.0 r

5.6 r

4.3 r

-4.1 r

0.7

2020 IV
III
II
I

2.6
4.0
3.0
0.8

-2.6
-3.2
-11.1
0.1

-5.0
-6.9
-13.7
-0.7

8.8 r
7.2
8.8
3.3

7.5 r
5.9
8.3
1.2

6.1 r
3.1
5.6
2.5

-6.4 r
-2.6
-7.8
0.2

0.7
0.6
-0.2
1.5

2019 ANNUAL

1.8

2.5

0.7

3.7

1.8

1.9

1.1

1.5

2019 IV
2.0
2.7
0.7
3.4
1.3
1.4
1.4
1.4
III
1.7
2.3
0.7
2.9
1.1
1.2
1.8
1.4
II
1.8
2.2
0.3
4.2
2.3
2.3
0.6
1.6
I
1.6
2.6
1.1
4.2
2.5
2.6
0.5
1.7
--------------------------------------------------------------------------------------------------Indexes 2012=100
2021 I

112.7 r

121.8 r

108.1 r

134.2 r

116.8 r

119.1 r

105.9 r

113.4 r

2020 ANNUAL

110.7

116.2

105.0

128.8 r

114.0 r

116.3 r

105.5 r

111.6

2020 IV
III
II
I

111.3
112.3
111.2
108.3

119.4
117.7
107.4
120.5

107.3
104.8
96.6
111.3

131.9 r
128.9
130.8
123.9

115.8 r
113.9
116.9
109.8

118.6 r
114.7
117.7
114.4

103.9 r
108.0
101.5
108.1

112.2
111.8
110.6
111.7

2019 ANNUAL

108.0

121.3

112.4

120.4

107.9

111.5

110.0

110.8

2019 IV
108.5
122.5
112.9
121.2
107.8
111.8
111.0
111.4
III
108.1
121.6
112.6
120.2
107.5
111.3
110.9
111.1
II
107.9
120.8
111.9
120.3
107.9
111.4
110.1
110.8
I
107.4
120.4
112.1
119.9
108.5
111.6
107.9
110.0
--------------------------------------------------------------------------------------------------See footnotes following Table 6.
June 3, 2021
r=revised
Source: Bureau of Labor Statistics

-10-

Table 3. Manufacturing sector: Labor productivity, hourly compensation, and unit labor costs,
seasonally adjusted.
Real
Year
Labor
Hourly
hourly
Unit
and
producHours
compensacompensalabor
quarter
tivity
Output
worked
tion (1)
tion (2)
costs
--------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate (5)
2021 I

-1.7 r

1.4 r

2020 ANNUAL

-0.1 r

-6.8 r

2020 IV
III
II
I
2019 ANNUAL

4.4 r
20.7
-13.4
1.8
-1.4 r

12.4
57.9
-46.4
-5.5
-1.7 r

3.1 r

8.9 r

5.0 r

10.7 r

-6.6

5.6 r

4.3 r

5.8 r

7.6
30.8
-38.1
-7.2

9.8 r
-12.4
25.0
6.1

7.2 r
-16.3
29.0
5.1

5.1 r
-27.4
44.3
4.3

-0.2

3.1

1.2

4.6 r

2019 IV
-1.0 r
-0.8 r
0.1
5.6
2.9
6.7 r
III
-1.4 r
-0.4 r
1.1
-1.5
-2.8
-0.1 r
II
-3.6 r
-5.0 r
-1.4
2.0
-1.5
5.8 r
I
-1.1 r
-4.2 r
-3.1
7.0
6.2
8.2 r
--------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year
2021 I

1.8 r

-0.9 r

-2.6 r

7.0 r

5.0 r

5.1 r

2020 ANNUAL

-0.1 r

-6.8 r

-6.6

5.6 r

4.3 r

5.8 r

2020 IV
III
II
I

2.7
1.3 r
-3.7 r
-1.1 r

-2.6
-5.6 r
-15.9 r
-2.9 r

-5.2
-6.8
-12.7
-1.9

6.3 r
5.3
8.4
3.0

5.0 r
3.9
7.9
0.9

2019 ANNUAL

-1.4 r

-1.7 r

-0.2

3.1

1.2

3.5
3.9
12.5
4.1

r
r
r
r

4.6 r

2019 IV
-1.8 r
-2.6 r
-0.8
3.2
1.2
5.1 r
III
-1.8 r
-2.5 r
-0.7
2.6
0.8
4.5 r
II
-1.6 r
-1.7 r
-0.1
4.0
2.1
5.7 r
I
-0.5 r
0.1 r
0.6
2.5
0.9
3.1 r
--------------------------------------------------------------------------------------------------Indexes 2012=100
2021 I

97.5 r

99.0 r

2020 ANNUAL

95.8 r

95.0 r

2020 IV
III
II
I

97.9
96.9
92.4
95.8

98.7
95.9
85.5
99.9

2019 ANNUAL

95.9 r

r
r
r
r

101.5 r

126.8 r

110.4 r

130.1 r

99.2

122.2 r

108.2 r

127.6 r

r
r
r
r

100.8
99.0
92.5
104.3

124.2 r
121.3
125.4
118.6

109.0 r
107.1
112.0
105.1

126.8
125.2
135.6
123.8

101.9 r

106.2

115.7

103.7

120.6 r

r
r
r
r

2019 IV
95.4 r
101.4 r
106.3
116.8
103.8
122.5 r
III
95.6 r
101.6 r
106.2
115.2
103.1
120.5 r
II
96.0 r
101.7 r
105.9
115.7
103.8
120.6 r
I
96.8 r
103.0 r
106.3
115.1
104.2
118.9 r
--------------------------------------------------------------------------------------------------See footnotes following Table 6.
June 3, 2021
r=revised
Source: Bureau of Labor Statistics

-11-

Table 4. Durable manufacturing sector: Labor productivity, hourly compensation, and unit labor
costs, seasonally adjusted.
Real
Year
Labor
Hourly
hourly
Unit
and
producHours
compensacompensalabor
quarter
tivity
Output
worked
tion (1)
tion (2)
costs
--------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate (5)
2021 I
2020 ANNUAL
2020 IV
III
II
I
2019 ANNUAL

1.1 r

5.7 r

-1.3 r

-9.2 r

5.6 r
48.2 r
-26.0
-2.4
-1.7 r

4.6 r

11.7 r

7.6 r

10.4 r

-8.0

5.4 r

4.1 r

6.8 r

11.9 r
102.8
-57.7
-9.8

6.0
36.9
-42.8
-7.6

11.3 r
-16.5
26.9
4.8

8.7 r
-20.3
31.0
3.7

5.4 r
-43.7
71.6
7.3

-1.8 r

0.0

2.6

0.7

4.4 r

2019 IV
-1.3 r
-2.4 r
-1.1
8.8
6.0
10.2 r
III
-1.0 r
-0.3 r
0.8
-2.9
-4.1
-1.8 r
II
-2.6 r
-4.9 r
-2.4
1.2
-2.2
3.9 r
I
-3.3 r
-6.1 r
-2.9
6.8
6.0
10.4 r
--------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year
2021 I

4.0 r

0.4 r

-3.5 r

7.1 r

5.1 r

3.0 r

2020 ANNUAL

-1.3 r

-9.2 r

-8.0

5.4 r

4.1 r

6.8 r

2020 IV
III
II
I

3.1
1.4 r
-8.4 r
-1.8 r

r
r
r
r

-6.4
-8.0
-14.8
-2.6

5.4 r
4.8
8.9
2.9

4.2 r
3.5
8.4
0.8

2019 ANNUAL

-1.7 r

-1.8 r

0.0

2.6

0.7

-3.5
-6.8
-21.9
-4.4

2.3
3.4
18.8
4.8

r
r
r
r

4.4 r

2019 IV
-2.1 r
-3.4 r
-1.4
3.4
1.3
5.6 r
III
-2.0 r
-2.4 r
-0.4
1.6
-0.2
3.7 r
II
-1.7 r
-1.4 r
0.3
3.2
1.3
5.0 r
I
-1.2 r
0.2 r
1.4
2.1
0.5
3.4 r
--------------------------------------------------------------------------------------------------Indexes 2012=100
2021 I

99.3 r

99.7 r

100.4 r

127.7 r

111.1 r

128.6 r

2020 ANNUAL

95.3 r

93.3 r

97.9

122.6 r

108.5 r

128.6 r

2020 IV
III
II
I

99.0
97.7
88.5
95.5

98.3
95.6
80.1
99.3

r
r
r
r

99.3
97.8
90.5
104.0

124.2 r
120.9
126.5
119.2

109.1 r
106.8
113.0
105.7

125.4
123.8
142.9
124.9

2019 ANNUAL

96.6 r

102.7 r

106.4

116.3

104.3

120.4 r

r
r
r
r

r
r
r
r

2019 IV
96.0 r
101.9 r
106.1
117.8
104.7
122.7 r
III
96.4 r
102.5 r
106.4
115.4
103.2
119.7 r
II
96.6 r
102.6 r
106.2
116.2
104.3
120.3 r
I
97.2 r
103.9 r
106.8
115.9
104.9
119.1 r
--------------------------------------------------------------------------------------------------See footnotes following Table 6.
June 3, 2021
r=revised
Source: Bureau of Labor Statistics

-12-

Table 5. Nondurable manufacturing sector: Labor productivity, hourly compensation, and unit labor
costs, seasonally adjusted.
Real
Year
Labor
Hourly
hourly
Unit
and
producHours
compensacompensalabor
quarter
tivity
Output
worked
tion (1)
tion (2)
costs
--------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate (5)
2021 I

-3.7 r

-3.0 r

0.2 r

-4.1 r

2020 IV
III
II
I

2.3 r
1.5
-3.9
6.2

2019 ANNUAL

-1.0 r

2020 ANNUAL

0.7 r

3.6 r

-0.1 r

7.6 r

-4.3

6.5 r

5.2 r

6.3 r

12.9 r
23.3
-32.1
-0.7

10.3
21.5
-29.4
-6.4

7.3 r
-5.1
23.9
9.1

4.8 r
-9.4
27.9
7.9

4.9 r
-6.5 r
29.0
2.7

-1.6 r

-0.6

4.0

2.2

5.1 r

2019 IV
-1.3 r
0.9 r
2.3
0.1
-2.5
1.4 r
III
-2.0 r
-0.5 r
1.5
1.2
-0.1
3.2 r
II
-5.4 r
-5.0 r
0.5
3.7
0.2
9.6 r
I
1.4 r
-2.1 r
-3.5
7.4
6.6
5.8 r
--------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year
2021 I

-1.0 r

-2.2 r

-1.2 r

6.9 r

4.9 r

8.0 r

0.2 r

-4.1 r

-4.3

6.5 r

5.2 r

6.3 r

2020 IV
III
II
I

1.5
0.5 r
-0.3 r
-0.7 r

-1.6
-4.3 r
-9.3 r
-1.3 r

-3.0
-4.8
-9.0
-0.6

8.3 r
6.4
8.1
3.4

7.0 r
5.1
7.7
1.3

6.8
5.9
8.5
4.2

2019 ANNUAL

-1.0 r

-1.6 r

-0.6

4.0

2.2

5.1 r

2020 ANNUAL

r
r
r
r

2019 IV
-1.9 r
-1.7 r
0.2
3.0
1.0
5.0 r
III
-1.5 r
-2.6 r
-1.1
4.5
2.7
6.0 r
II
-1.4 r
-2.1 r
-0.7
5.4
3.5
6.9 r
I
0.7 r
0.0 r
-0.7
3.1
1.5
2.5 r
--------------------------------------------------------------------------------------------------Indexes 2012=100
2021 I

96.2 r

99.6 r

103.5 r

125.6 r

109.3 r

130.6 r

2020 ANNUAL

96.8 r

98.0 r

101.3

122.0 r

108.0 r

126.1 r

2020 IV
III
II
I

97.1
96.6
96.2
97.2

r
r
r
r

103.3
100.8
96.0
104.8

124.5 r
122.3
123.9
117.5

109.3 r
108.1
110.8
104.1

128.2
126.7
128.8
120.9

2019 ANNUAL

96.5 r

102.2 r

105.9

114.5

102.7

118.6 r

r
r
r
r

100.4
97.4
92.4
101.8

r
r
r
r

2019 IV
95.7 r
102.0 r
106.5
115.0
102.2
120.1 r
III
96.1 r
101.8 r
105.9
114.9
102.8
119.7 r
II
96.5 r
101.9 r
105.5
114.6
102.9
118.7 r
I
97.9 r
103.2 r
105.4
113.6
102.8
116.0 r
--------------------------------------------------------------------------------------------------See footnotes following Table 6.
June 3, 2021
r=revised
Source: Bureau of Labor Statistics

-13-

Table 6. Nonfinancial corporate sector: Labor productivity, hourly compensation, unit labor costs,
unit profits, and prices, seasonally adjusted.
Real
Hourly
hourly
Unit
Total
Implicit
Year
Labor
compencompenUnit
nonlabor unit
Unit
price
and
producHours
sation
sation
labor
costs
costs
profits deflator
quarter
tivity
Output
worked
(1)
(2)
costs
(6)
(7)
(8)
(4)
--------------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate (5)
2021 I

5.8

2020 ANNUAL

2.1 r

-4.3 r

16.7 r
-0.6
4.9
0.3

28.8 r
32.0
-38.3
-4.0

0.7

1.6

2020 IV
III
II
I
2019 ANNUAL

8.8

2.8

6.7

2.8

0.8

22.3

6.6

-4.7

5.1

-6.3

7.5 r

6.2 r

5.3 r

-9.3 r

0.7

-0.1 r

0.6

10.3
32.8
-41.2
-4.3

7.8 r
-5.9
30.8
8.3

5.3 r
-10.1
35.0
7.2

-7.6 r
-5.3
24.7
7.9

62.3 r
-24.9
-49.2
10.3

7.6 r
-10.9
-4.0
8.7

-32.3 r
228.3
-6.7
-44.1

1.1
4.8
-4.3
0.6

1.9

2.7

-3.3

1.9

0.9

3.8

1.9

3.1

2019 IV
1.4
2.6
1.1
2.6
0.0
1.2
-2.3
0.1
12.4
1.5
III
-0.8
-0.1
0.6
0.1
-1.2
0.9
6.6
2.6
-5.3
1.6
II
0.8
1.0
0.3
1.1
-2.3
0.3
1.5
0.7
16.1
2.4
I
2.2
2.9
0.7
11.9
11.1
9.5
3.3
7.5
-30.8
1.7
--------------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year
2021 I

6.5

2020 ANNUAL

2.1 r

2020 IV
III
II
I

5.1 r
1.5
1.4
0.4

2019 ANNUAL

0.7

3.3

-3.0

9.1

7.1

2.4

-6.7

-4.3 r

-6.3

7.5 r

6.2 r

5.3 r

-9.3 r

0.7

0.2 r
-5.4
-11.8
-0.2

-4.7
-6.8
-13.0
-0.6

9.5 r
8.2
9.8
3.0

8.2 r
6.8
9.4
0.8

4.2 r
6.6
8.3
2.5

-9.1 r
-19.9
-12.6
3.9

0.0 r
-1.8
1.7
3.0

3.8

1.9

3.1

1.6

0.9

1.9

-0.5

2.7

18.5

1.6

-0.1 r

0.6

3.7 r
17.8
-13.7
-8.9

0.5
0.6
-0.2
1.5

-3.3

1.9

2019 IV
0.9
1.6
0.7
3.8
1.7
2.9
2.2
2.7
-3.9
1.8
III
0.3
1.0
0.7
3.4
1.6
3.0
3.4
3.1
-6.1
1.9
II
1.2
1.9
0.8
4.2
2.3
2.9
1.3
2.4
-1.4
1.9
I
0.3
1.7
1.4
3.8
2.2
3.5
0.9
2.7
-1.6
2.1
--------------------------------------------------------------------------------------------------------Indexes 2012=100
2021 I

109.7

120.0

109.4

134.6

117.1

122.7

102.9

116.1

100.2

113.8

2020 ANNUAL

104.9 r

111.7 r

106.5

129.3 r

114.5 r

123.3 r

97.2 r

114.6 r

95.4 r

111.9

2020 IV
III
II
I

108.1 r
104.1
104.2
103.0

117.5 r
110.3
102.9
116.1

108.6
106.0
98.7
112.8

132.5 r
130.0
132.0
123.4

116.3 r
114.8
117.9
109.4

122.5 r
124.9
126.6
119.8

97.8 r
86.7
93.1
110.3

114.3 r
112.2
115.5
116.7

101.4 r
111.8
83.1
84.5

112.4
112.1
110.8
112.1

2019 ANNUAL

102.7

116.7

113.7

120.3

107.8

117.2

107.1

113.8

95.4

111.2

2019 IV
102.9
117.3
114.0
121.0
107.5
117.6
107.6
114.3
97.8
111.9
III
102.5
116.6
113.7
120.2
107.5
117.2
108.2
114.2
95.0
111.5
II
102.7
116.6
113.5
120.2
107.8
117.0
106.5
113.5
96.3
111.0
I
102.5
116.3
113.4
119.8
108.5
116.9
106.1
113.3
92.7
110.4
--------------------------------------------------------------------------------------------------------See footnotes following Table 6.
June 3, 2021
r=revised
Source: Bureau of Labor Statistics

-14-

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.
SIZE OF REVISIONS: Productivity and cost measures are revised on a regular schedule as more
complete data become available. The first estimate is published within 40 days of the close of the
reference quarter, the second estimate approximately 30 days later, and the third estimate approximately
60 days after the second estimate. Based on past revisions, the third estimate of nonfarm business sector
quarterly labor productivity growth has differed from the first estimate by -1.0 to +1.4 percentage point
about 80 percent of the time. This interval is based on estimates for reference quarters from the first
quarter of 2001 to the fourth quarter of 2020. For more about revisions to labor productivity growth see
“How large are revisions to estimates of quarterly labor productivity growth?” at
www.bls.gov/osmr/research-papers/2021/ec210040.htm.
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 1978-2020 is based on the Consumer Price Index Retroactive series (CPI-URS).
(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
adjustment.

-15-