Full text of Productivity and Costs : Second Quarter 2004, Preliminary

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PRODUCTIVITY AND COSTS
Second Quarter 2004
The Bureau of Labor Statistics of the U.S. Department of Labor reported preliminary
productivity data—as measured by output per hour of all persons—for the second quarter of
2004. The preliminary seasonally adjusted annual rates of productivity change in the second
quarter were:
1.9 percent in the business sector and
2.9 percent in the nonfarm business sector.
Productivity growth in the business sector reflected increases of 3.5 percent in output and 1.5
percent in hours. Output per hour increased more in the nonfarm business sector because output
grew more, 3.8 percent, and hours rose less, 0.8 percent, than in the business sector.
In manufacturing, the preliminary productivity changes in the second quarter were:
7.5 percent in manufacturing,
5.7 percent in durable goods manufacturing, and
10.7 percent in nondurable goods manufacturing.
Manufacturing productivity grew 7.5 percent in the second quarter as output increased 6.6
percent and hours declined 0.9 percent (seasonally adjusted annual rates). Output and hours in
manufacturing, which includes about 13 percent of U.S. business-sector employment, tend to
vary more from quarter to quarter than data for the aggregate business and nonfarm business
sectors. Second-quarter measures are summarized in table A and appear in detail in tables 1
through 5.

Data in this release reflect the regular multi-year GDP revisions released by the Bureau of
Economic Analysis of the U.S. Department of Commerce on July 30. They also incorporate new
estimates of average weekly hours at work for nonproduction and supervisory workers, along
with new information on seasonal patterns for farm workers, nonfarm proprietors and unpaid
family workers, and employees of government enterprises. See Revised Measures, page 4.

2

Table A. Productivity and costs: Preliminary second-quarter 2004 measures
(Seasonally adjusted annual rates)

Sector

Productivity

Output

Hours

Hourly
compensation

Real
hourly
compensation

Unit
labor
costs

Percent change from preceding quarter
Business
Nonfarm business
Manufacturing
Durable
Nondurable

1.9
2.9
7.5
5.7
10.7

3.5
3.8
6.6
6.4
6.9

1.5
0.8
-0.9
0.7
-3.5

4.2
4.9
5.2
4.7
5.9

-0.5
0.1
0.5
-0.1
1.1

2.2
1.9
-2.2
-1.0
-4.4

1.7
1.9
3.0
2.5
3.7

0.5
0.2
0.0
-1.9
1.7

Percent change from same quarter a year ago
Business
Nonfarm business
Manufacturing
Durable
Nondurable

4.1
4.7
6.0
7.4
4.9

5.5
5.9
5.8
8.5
2.7

1.3
1.1
-0.2
1.1
-2.1

4.6
4.8
5.9
5.4
6.7

The data sources and methods used in the preparation of the manufacturing series differ
from those used in preparing the business and nonfarm business series, and these measures are
not directly comparable. Output measures for business and nonfarm business are based on
measures of gross domestic product prepared by the Bureau of Economic Analysis of the U.S.
Department of Commerce. Quarterly output measures for manufacturing reflect indexes of
industrial production independently prepared by the Board of Governors of the Federal Reserve
System. See Technical Notes for further information on data sources (page 8).
Business
From the first quarter to the second quarter of 2004, business sector output per hour
increased at a 1.9-percent annual rate. Output increased 3.5 percent and hours of all persons
engaged in the sector increased 1.5 percent (seasonally adjusted annual rates). As revised, labor
productivity grew 3.9 percent in the first quarter of 2004, as output and hours increased 5.3
percent and 1.3 percent, respectively (table 1).
Hourly compensation increased 4.2 percent in the second quarter, less than the 4.8
percent gain in the first quarter of 2004 (seasonally adjusted annual rates). This measure of
compensation includes wages and salaries, supplements, employer contributions to employee
benefit plans, and taxes. Real hourly compensation, which takes into account changes in
consumer prices, declined 0.5 percent during the second quarter of 2004, after rising 1.1 percent
during the first quarter.

3
Unit labor costs, which reflect changes in both hourly compensation and productivity,
increased 2.2 percent during the second quarter of 2004 after rising 0.8 percent in the previous
quarter. The implicit price deflator for the business sector, which reflects changes in both unit
labor costs and unit nonlabor payments, increased 3.2 percent in the second quarter and 2.1
percent in the first quarter of 2004.
Nonfarm Business
Productivity increased 2.9 percent in the nonfarm business sector during the second
quarter of 2004, as output increased 3.8 percent and hours of all persons rose 0.8 percent
(seasonally adjusted annual rates). Output per hour grew at a 3.7 percent annual rate in the first
quarter of 2004, as output increased 5.7 percent and hours increased 2.0 percent (table 2).
Hourly compensation in the nonfarm business sector increased 4.9 percent in the second
quarter of 2004, up from the 4.0-percent rise one quarter earlier. When the rise in consumer
prices is taken into account, real hourly compensation rose 0.1 percent in the second quarter of
2004 and 0.3 percent in the first quarter.
Unit labor costs increased 1.9 percent in the second quarter of 2004, after rising 0.3
percent during the first quarter. The implicit price deflator for nonfarm business output grew 2.8
percent in the second quarter, following a 2.0-percent increase in the previous quarter.
Manufacturing
Productivity increased 7.5 percent in manufacturing, as output grew 6.6 percent and
hours of all persons declined 0.9 percent (seasonally adjusted annual rates). In the previous
quarter, productivity rose 2.8 percent, reflecting increases in output and hours of 6.2 and 3.3
percent, respectively. In durable goods, productivity rose 5.7 percent in the second quarter as
output grew 6.4 percent and hours of all persons rose 0.7 percent. In nondurable goods, secondquarter productivity increased by 10.7 percent, output increased 6.9 percent, and hours fell 3.5
percent (tables 3, 4, and 5). The productivity gain in nondurable goods industries was the largest
since the fourth quarter of 1999, when output per hour increased 12.6 percent.
Hourly compensation of all manufacturing workers rose 5.2 percent during the second
quarter, reflecting growth of 4.7 percent in durable goods industries and 5.9 percent in the
nondurable manufacturing sector. When the increase in consumer prices is taken into account,
the real hourly compensation of all manufacturing workers increased by 0.5 percent in the
second quarter, after rising 1.2 percent one quarter earlier.
Unit labor costs in manufacturing fell 2.2 percent in the second quarter of 2004,
reflecting declines of 1.0 percent in durable goods industries and 4.4 percent in nondurable
goods industries.

4
Revised Measures
Current and previous measures for the first quarter of 2004 for the business, nonfarm
business, and manufacturing sectors are compared in table B. In each of these sectors,
productivity was revised downward from the preliminary numbers reported on June 3, as both
output and hours were revised up—hours more than output. Hourly compensation and unit labor
costs grew less in all three sectors than reported on June 3, based on information then available.
Table B also shows comparisons of current and previous measures for the fourth quarter
of 2003. In that quarter, productivity in the business and nonfarm business sectors was revised
up, reflecting upward revisions to output and downward revisions to hours worked. Hourly
compensation for the fourth quarter of 2003 was revised up in both sectors. Because the upward
revisions to productivity were larger than those to hourly compensation, unit labor costs in both
sectors were revised down. In the manufacturing sector, productivity in the fourth quarter was
revised down, reflecting an upward revision in hours. Hourly compensation was also revised
down, but unit labor costs show a larger increase than reported earlier as the downward revision
to hourly compensation was less than that to productivity.

Table B. Previous and revised productivity and related measures
Quarterly percent changes at seasonally adjusted annual rates

Sector

Productivity

Output

Hours

Hourly
compensation

Real
hourly
compensation

Unit
labor
costs

First quarter 2004
Business:
Previous .......................
Current .........................
Nonfarm business:
Previous .......................
Current .........................
Manufacturing:
Previous .......................
Current .........................

4.6
3.9

5.2
5.3

0.5
1.3

5.9
4.8

2.2
1.1

1.2
0.8

3.8
3.7

5.4
5.7

1.5
2.0

4.6
4.0

0.9
0.3

0.8
0.3

2.9
2.8

5.8
6.2

2.8
3.3

6.2
4.8

2.5
1.2

3.1
2.0

Fourth quarter 2003
Business:
Previous .......................
Current .........................
Nonfarm business:
Previous .......................
Current .........................
Manufacturing:
Previous .......................
Current .........................

1.8
2.4

3.9
4.2

2.0
1.7

3.8
4.0

3.0
3.3

1.9
1.6

2.5
3.1

4.2
4.6

1.6
1.4

4.2
4.4

3.4
3.6

1.7
1.2

4.8
3.3

6.2
6.2

1.4
2.9

6.8
5.7

6.0
4.9

2.0
2.3

5
Output data for the business and nonfarm business sectors and the compensation series
for all sectors incorporate the revisions of the national income and product accounts produced by
the Bureau of Economic Analysis, U.S. Department of Commerce. These revisions affected data
beginning with the first quarter of 2001. Table C presents previous and revised measures for
major sectors for the years 2001 to 2003. The largest revisions were to hourly compensation
and, therefore, to real hourly compensation and unit labor costs for the years 2002 and 2003.
Table C. Previous and revised productivity and related measures
Annual percent changes

Sector

Productivity

Output

Hours

Hourly
compensation

Real
hourly
compensation

Unit
labor
costs

Annual average 2003
Business:
Previous .......................
Current .........................
Nonfarm business:
Previous .......................
Current .........................
Manufacturing:
Previous .......................
Current .........................

4.5
4.5

3.7
3.8

-0.8
-0.7

3.6
4.1

1.3
1.8

-0.8
-0.4

4.4
4.4

3.7
3.8

-0.7
-0.6

3.5
4.1

1.2
1.7

-0.9
-0.4

5.1
5.1

0.1
0.1

-4.8
-4.8

5.9
8.5

3.5
6.1

0.7
3.2

Annual average 2002
Business:
Previous .......................
Current .........................
Nonfarm business:
Previous .......................
Current .........................
Manufacturing:
Previous .......................
Current .........................

4.9
4.3

2.3
1.8

-2.5
-2.4

2.2
3.2

0.6
1.5

-2.5
-1.1

5.0
4.4

2.3
1.8

-2.6
-2.5

2.3
3.3

0.7
1.6

-2.5
-1.1

7.2
7.0

-0.6
-0.6

-7.3
-7.1

4.0
6.7

2.4
5.0

-3.0
-0.3

Annual average 2001
Business:
Previous .......................
Current .........................
Nonfarm business:
Previous .......................
Current .........................
Manufacturing:
Previous .......................
Current .........................

2.2
2.5

0.1
0.3

-2.1
-2.1

4.1
4.2

1.3
1.3

1.8
1.6

2.1
2.5

0.1
0.4

-2.0
-2.0

3.9
4.0

1.1
1.1

1.7
1.5

2.2
2.1

-4.6
-4.6

-6.6
-6.5

2.4
2.3

-0.4
-0.4

0.2
0.2

6
Measures of hours for all of the major sectors have been revised to incorporate new
estimates of average weekly hours at work for supervisory and nonproduction workers. Ratios
of the average weekly hours at work for these employees relative to those of nonsupervisory and
production workers were developed from data in the Current Population Survey. These ratios
were applied to average weekly hours at work for nonsupervisory and production workers
developed from data in the Current Employment Statistics and Employment Cost Index
programs.
An article discussing these new measures and the effects of this change was published in
the April 2004 issue of the Monthly Labor Review. A link to a technical note describing the
methodology will be posted later this summer on the BLS labor productivity home page
(www.bls.gov/lpc/). Copies of the technical note also will be available by calling 202-691-5604,
sending an email to dprweb@bls.gov, or writing to the Bureau of Labor Statistics, Division of
Major Sector Productivity, Room 2150, Washington DC 20212.
New information on seasonal patterns is reflected in measures of employment and hours
of farm workers, the nonfarm self-employed, and nonfarm unpaid family workers and in hours of
employees in government enterprises, beginning in 1999. Concurrent seasonal adjustment will
now be used when measuring employment and hours of these workers. Late in 2004 or early in
2005, BLS also intends to improve the way it uses these series in the productivity program,
adjusting them to account for the effects of multiple jobholding. Further information on this
change will be announced later this year.
Appendix tables 1-6 present quarterly and annual data for all sectors for 1999-2001.

7
Revised Measures: Nonfinancial Corporations
Productivity and cost measures for the first quarter of 2004 for nonfinancial corporations
also were revised to incorporate more recent information than was available in the June 3 release
(table D). Productivity growth was revised down, reflecting both a downward revision to output
and a larger increase in employee hours. The 2.7 increase in hours was the largest since the third
quarter of 1999, when hours increased 3.1 percent. Hourly compensation growth was revised
down one percentage point, like productivity, so the increase in unit labor costs was unchanged.
Unit profits were revised up significantly.
Productivity and cost measures for the fourth quarter of 2003 also were revised to
incorporate more recent information on output, hours, and employee compensation. Fourth
quarter 2003 productivity was revised up, reflecting an upward revision to output. The revision
to productivity was larger than the upward revision in hourly compensation, resulting in a larger
decline in unit labor costs than originally reported.

Table D. Nonfinancial corporations: Previous and revised productivity and cost measures
Quarterly percent changes at seasonally adjusted annual rates

ProducOutput
tivity
Previous
Current
Previous
Current

2.3
1.3
4.3
5.0

Hours

Hourly
compensation

Real
hourly
compensation

Unit
labor
costs

Implicit
price
Unit
profits deflator

4.5
4.1

First quarter 2004
2.1
5.1
1.4
2.7
4.1
0.5

2.7
2.7

-0.9
15.5

1.9
2.1

6.0
6.7

Fourth quarter 2003
1.6
3.9
3.1
1.6
4.2
3.4

-0.4
-0.8

11.6
16.1

1.1
0.4

Next release date
The next release of Productivity and Costs is scheduled for 8:30 a.m. EDT, Thursday,
Sept. 2, 2004. Revised second-quarter measures for business, nonfarm business, and
manufacturing will be released at that time, along with preliminary measures for nonfinancial
corporations.

8
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 years prior to 2004. 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.
Output: Business sector output is an annualweighted index constructed after excluding from
gross domestic product (GDP) the following
outputs: general government, nonprofit institutions, and private households (including owneroccupied housing). Corresponding exclusions also
are made in labor inputs. Business output
accounted for about 78 percent of the value of
GDP in 2000. Nonfarm business, which also
excludes farming, accounted for about 77 percent
of GDP in 2000.
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 BEA. 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 an annualweighted 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 54 percent of the value of
GDP in 2000.
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.
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.

9

Table 1. Business sector: Productivity, hourly compensation, unit labor costs,
and prices, seasonally adjusted
Real
Year
Output per
Hours
CompensacompensaUnit
Unit nonImplicit
and
hour of
of all
tion per
tion per
labor
labor pay- price
quarter
all persons Output
persons
hour (1)
hour (2)
costs
ments (3)
deflator (4)
--------------------------------------------------------------------------------------------------------Indexes 1992=100
2002

2003

I
II
III
IV

r122.7
r123.2
124.7
r125.0

r142.2
r142.9
r144.3
r144.7

r115.9
r116.0
r115.7
r115.7

r143.2
r144.4
r145.0
r145.5

r115.2
r115.2
r115.0
r114.8

r116.7
r117.2
r116.3
r116.3

r113.4
r113.6
r115.7
r116.8

r115.5
r115.9
r116.1
116.5

ANNUAL

r123.9

r143.5

r115.8

r144.5

r115.0

r116.6

r114.9

r116.0

I
II
III
IV

r126.2
128.6
r131.2
r132.0

r145.5
r147.5
r150.8
r152.3

r115.3
r114.7
r114.9
r115.4

r147.4
r149.6
r151.7
r153.2

r115.3
r116.8
r117.7
r118.7

r116.8
r116.4
r115.6
r116.0

r117.7
r119.0
r120.8
r120.7

r117.1
r117.3
r117.5
r117.8

ANNUAL

r129.5

r149.0

115.1

r150.5

r117.1

r116.2

r119.6

117.4

2004

I
r133.3
r154.3
r115.8
r155.0
r119.0
r116.3
r121.9
r118.4
II
133.9
155.6
116.2
156.6
118.8
116.9
123.4
119.3
--------------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5)
2002

2003

I
II
III
IV

r5.9
r1.7
r4.8
r1.2

r3.5
r2.1
r3.8
r1.2

r-2.3
r0.4
r-1.0
r0.0

r4.9
r3.4
r1.6
r1.3

r3.5
r-0.1
r-0.7
r-0.6

r-1.0
r1.7
r-3.1
r0.0

r1.0
r1.0
r7.3
r3.8

r-0.3
r1.4
r0.7
r1.4

ANNUAL

r4.3

r1.8

r-2.4

r3.2

r1.5

r-1.1

r4.5

r0.9

I
II
III
IV

r3.9
r7.6
r8.5
r2.4

r2.2
r5.6
r9.3
r4.2

r-1.6
r-1.9
r0.7
r1.7

r5.5
r6.1
r5.6
r4.0

r1.7
r5.4
r3.1
r3.3

r1.6
r-1.4
r-2.6
r1.6

r3.1
r4.5
r6.3
r-0.4

r2.1
r0.8
r0.7
r0.8

ANNUAL

4.5

r3.8

r-0.7

r4.1

r1.8

r-0.4

r4.1

r1.3

2004

I
r3.9
r5.3
r1.3
r4.8
r1.1
r0.8
r4.2
r2.1
II
1.9
3.5
1.5
4.2
-0.5
2.2
4.8
3.2
--------------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year
2002

2003

2004

I
II
III
IV

r4.9
r4.0
r4.9
r3.4

r0.8
r1.1
r2.8
r2.7

-3.9
r-2.8
r-2.0
r-0.7

r3.2
r3.4
r3.3
r2.8

r1.9
r2.1
r1.6
r0.5

r-1.6
r-0.6
r-1.6
r-0.6

r6.6
r3.5
r4.9
r3.2

r1.2
r0.9
r0.8
0.8

ANNUAL

r4.3

r1.8

r-2.4

r3.2

r1.5

r-1.1

r4.5

r0.9

I
II
III
IV

r2.9
4.4
5.3
r5.6

2.3
r3.2
r4.5
r5.3

-0.6
r-1.1
r-0.7
r-0.3

r2.9
r3.6
r4.6
r5.3

r0.1
r1.4
r2.4
r3.3

r0.0
r-0.7
r-0.6
r-0.3

r3.8
r4.7
r4.4
r3.4

1.4
r1.3
r1.3
r1.1

ANNUAL

4.5

r3.8

r-0.7

r4.1

r1.8

r-0.4

r4.1

r1.3

I
5.6
r6.1
r0.5
r5.1
r3.2
r-0.4
r3.6
r1.1
II
4.1
5.5
1.3
4.6
1.7
0.5
3.7
1.7
--------------------------------------------------------------------------------------------------------See footnotes following Table 6.
August 10, 2004
r=revised
Source: Bureau of Labor Statistics

10

Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs,
and prices, seasonally adjusted
Real
Year
Output per
Hours
CompensacompensaUnit
Unit nonImplicit
and
hour of
of all
tion per
tion per
labor
labor pay- price
quarter
all persons Output
persons
hour (1)
hour (2)
costs
ments (3)
deflator (4)
--------------------------------------------------------------------------------------------------------Indexes 1992=100
2002

2003

I
II
III
IV

r122.4
122.8
r124.1
r124.6

r142.6
r143.2
r144.5
r145.0

r116.5
r116.7
r116.4
116.4

r142.6
r143.8
r144.3
r144.7

r114.7
r114.7
r114.4
r114.3

r116.4
r117.1
r116.2
r116.1

r115.1
r115.4
r117.7
r118.9

r116.0
r116.5
r116.8
r117.2

ANNUAL

r123.5

r143.9

r116.5

r143.8

r114.5

r116.5

r116.8

r116.6

I
II
III
IV

r125.8
r127.8
r130.6
r131.7

r145.9
r147.8
r151.1
r152.8

r116.0
r115.6
115.7
r116.1

r146.6
r148.7
r150.9
r152.5

r114.7
r116.1
r117.1
r118.2

r116.6
r116.3
r115.5
r115.9

r119.6
r120.4
r122.3
r121.9

r117.7
r117.8
r118.0
r118.1

ANNUAL

r129.0

r149.4

r115.8

r149.7

r116.5

r116.1

r121.1

117.9

2004

I
132.8
r155.0
r116.7
r154.0
r118.3
r116.0
r123.3
r118.7
II
133.8
156.4
116.9
155.9
118.3
116.5
124.7
119.5
--------------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5)
2002

2003

I
II
III
IV

r6.9
r1.1
4.5
r1.6

r4.0
r1.7
r3.6
r1.4

r-2.7
r0.6
r-0.9
r-0.2

r5.5
r3.4
r1.5
r1.2

r4.1
r-0.1
r-0.8
r-0.6

r-1.4
r2.3
r-2.9
r-0.3

r1.6
r1.0
r8.0
r4.2

r-0.3
r1.8
1.0
r1.3

ANNUAL

r4.4

r1.8

r-2.5

r3.3

r1.6

r-1.1

r4.7

r1.0

I
II
III
IV

r3.7
r6.7
r9.0
r3.1

2.4
r5.3
r9.3
r4.6

r-1.3
r-1.4
r0.3
r1.4

r5.4
r5.7
r6.1
r4.4

r1.5
r5.0
r3.6
r3.6

r1.6
r-1.0
r-2.7
r1.2

r2.4
r2.9
r6.3
r-1.2

r1.9
r0.5
r0.6
r0.3

ANNUAL

4.4

r3.8

r-0.6

r4.1

r1.7

r-0.4

r3.7

r1.1

2004

I
r3.7
r5.7
r2.0
r4.0
r0.3
r0.3
r4.8
r2.0
II
2.9
3.8
0.8
4.9
0.1
1.9
4.4
2.8
--------------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year
2002

2003

2004

I
II
III
IV

r5.1
r4.0
r4.8
r3.5

r0.9
r1.0
r2.6
r2.7

-4.0
r-2.9
-2.1
r-0.8

r3.2
r3.5
r3.4
r2.9

r2.0
r2.2
r1.7
r0.6

r-1.8
r-0.5
r-1.3
r-0.6

r6.7
r3.4
r5.2
r3.7

r1.2
r0.9
r1.0
1.0

ANNUAL

r4.4

r1.8

r-2.5

r3.3

r1.6

r-1.1

r4.7

r1.0

I
II
III
IV

2.7
4.1
r5.2
r5.6

r2.3
r3.2
r4.6
r5.4

-0.5
r-0.9
r-0.6
-0.2

r2.9
r3.4
r4.6
r5.4

r0.0
r1.2
r2.4
r3.4

r0.1
r-0.7
r-0.6
r-0.2

r3.9
r4.4
r3.9
r2.5

1.5
1.2
r1.1
r0.8

ANNUAL

4.4

r3.8

r-0.6

r4.1

r1.7

r-0.4

r3.7

r1.1

I
r5.6
r6.2
r0.6
r5.0
r3.1
r-0.5
r3.1
r0.8
II
4.7
5.9
1.1
4.8
1.9
0.2
3.5
1.4
--------------------------------------------------------------------------------------------------------See footnotes following Table 6.
August 10, 2004
r=revised
Source: Bureau of Labor Statistics

11

Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
Real
Year
Output per
Hours
CompensacompensaUnit
and
hour of
of all
tion per
tion per
labor
quarter
all persons
Output
persons
hour (1)
hour (2)
costs
-------------------------------------------------------------------------------------------------Indexes 1992=100
2002

2003

I
II
III
IV

r143.8
r145.7
r147.8
r148.8

130.5
131.8
132.4
131.3

r90.7
r90.4
r89.5
r88.2

r144.1
r147.0
r148.6
r149.9

r115.9
r117.2
r117.8
r118.3

r100.2
r100.8
r100.5
r100.7

ANNUAL

r146.5

131.5

r89.7

r147.3

r117.3

r100.6

I
II
III
IV

r151.0
r152.1
r155.9
r157.2

131.3
130.1
131.5
133.5

r87.0
r85.6
r84.3
r84.9

r155.7
r158.5
r161.6
r163.9

r121.8
r123.8
r125.4
r127.0

r103.1
r104.2
r103.6
r104.2

ANNUAL

r154.0

131.6

r85.5

r159.9

r124.5

r103.8

2004

I
r158.3
r135.5
r85.6
r165.8
r127.3
r104.8
II
161.2
137.7
85.4
167.9
127.5
104.2
-------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5)
2002

2003

I
II
III
IV

r10.0
r5.4
r5.9
r2.7

2.5
4.0
1.7
-3.1

r-6.9
r-1.3
r-4.0
r-5.7

r14.2
r8.2
r4.5
r3.5

r12.7
r4.5
r2.2
r1.5

r3.8
r2.6
r-1.3
r0.7

ANNUAL

r7.0

-0.6

r-7.1

r6.7

r5.0

r-0.3

I
II
III
IV

r6.0
r2.8
r10.5
r3.3

0.1
-3.6
4.3
6.2

r-5.6
r-6.2
r-5.7
r2.9

r16.6
r7.3
r8.1
r5.7

r12.4
r6.6
r5.5
r4.9

r10.0
r4.4
r-2.2
r2.3

ANNUAL

5.1

0.1

-4.8

r8.5

r6.1

r3.2

2004

I
r2.8
r6.2
r3.3
r4.8
r1.2
r2.0
II
7.5
6.6
-0.9
5.2
0.5
-2.2
-------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year
2002

2003

2004

I
II
III
IV

r6.6
r7.3
r8.0
r6.0

-3.4
-1.1
0.9
1.2

r-9.4
r-7.9
-6.6
r-4.5

r4.1
r7.0
r8.2
r7.5

r2.8
r5.6
r6.5
r5.1

r-2.4
r-0.3
r0.2
r1.4

ANNUAL

r7.0

-0.6

r-7.1

r6.7

r5.0

r-0.3

I
II
III
IV

r5.0
r4.4
r5.5
r5.6

0.6
-1.3
-0.6
1.7

r-4.2
-5.4
r-5.8
r-3.7

r8.1
r7.9
r8.8
r9.4

r5.1
r5.6
r6.4
r7.3

r2.9
r3.3
r3.1
r3.5

ANNUAL

5.1

0.1

-4.8

r8.5

r6.1

r3.2

I
r4.8
r3.2
r-1.5
r6.5
r4.5
r1.6
II
6.0
5.8
-0.2
5.9
3.0
0.0
-------------------------------------------------------------------------------------------------See footnotes following Table 6.
August 10, 2004
r=revised
Source: Bureau of Labor Statistics

12

Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
Real
Year
Output per
Hours
CompensacompensaUnit
and
hour of
of all
tion per
tion per
labor
quarter
all persons
Output
persons
hour (1)
hour (2)
costs
-------------------------------------------------------------------------------------------------Indexes 1992=100
2002

2003

I
II
III
IV

r161.3
r163.9
r167.1
r170.5

152.6
154.7
155.9
156.1

r94.6
r94.4
r93.3
r91.6

r142.1
r145.2
r146.5
r147.7

r114.4
r115.8
r116.2
r116.6

r88.1
r88.6
r87.7
r86.6

ANNUAL

r165.6

154.8

r93.5

r145.3

r115.7

r87.7

I
II
III
IV

r173.7
r175.0
r181.5
r183.2

156.6
155.1
158.3
161.9

r90.2
r88.6
87.2
r88.3

r154.9
r157.9
r161.2
r163.3

r121.2
r123.3
r125.1
r126.5

r89.2
r90.2
r88.8
r89.1

ANNUAL

r178.3

158.0

r88.6

r159.3

r124.0

r89.3

2004

I
r185.3
r165.7
r89.4
r164.5
r126.3
r88.8
II
187.9
168.3
89.6
166.4
126.3
88.6
-------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5)
2002

2003

I
II
III
IV

r11.4
r6.4
r8.1
r8.4

2.8
5.5
3.3
0.4

r-7.7
r-0.8
r-4.5
r-7.3

r8.2
r8.8
r3.7
r3.3

r6.8
r5.1
r1.3
r1.4

r-2.9
r2.2
-4.1
r-4.7

ANNUAL

r8.3

-0.7

r-8.3

r5.5

r3.9

r-2.5

I
II
III
IV

r7.7
r3.0
r15.8
r3.9

1.4
-3.9
8.4
9.4

r-5.9
r-6.7
r-6.3
r5.2

r21.1
r7.9
r8.6
r5.3

r16.7
r7.2
r6.1
r4.5

r12.5
r4.7
r-6.1
r1.3

ANNUAL

r7.6

2.0

r-5.2

r9.6

r7.1

r1.8

2004

I
r4.6
r9.9
r5.0
r3.1
r-0.5
r-1.5
II
5.7
6.4
0.7
4.7
-0.1
-1.0
-------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year
2002

2003

2004

I
II
III
IV

6.9
r8.2
r9.3
r8.6

-4.9
-1.8
1.2
3.0

r-11.1
r-9.2
r-7.3
r-5.1

r3.1
r6.0
r7.0
r5.9

r1.9
r4.7
r5.3
r3.6

r-3.6
r-2.0
r-2.0
r-2.4

ANNUAL

r8.3

-0.7

r-8.3

r5.5

r3.9

r-2.5

I
II
III
IV

r7.6
6.8
r8.6
r7.5

2.6
0.3
1.5
3.7

r-4.7
-6.1
r-6.6
r-3.5

r9.0
r8.8
r10.1
r10.6

r5.9
r6.5
r7.7
r8.5

r1.2
r1.9
r1.3
r2.9

ANNUAL

r7.6

2.0

r-5.2

r9.6

r7.1

r1.8

I
r6.7
r5.8
r-0.9
r6.2
r4.3
r-0.5
II
7.4
8.5
1.1
5.4
2.5
-1.9
-------------------------------------------------------------------------------------------------See footnotes following Table 6.
August 10, 2004
r=revised
Source: Bureau of Labor Statistics

13

Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
Real
Year
Output per
Hours
CompensacompensaUnit
and
hour of
of all
tion per
tion per
labor
quarter
all persons
Output
persons
hour (1)
hour (2)
costs
-------------------------------------------------------------------------------------------------Indexes 1992=100
2002

2003

I
II
III
IV

r126.2
r127.5
r128.5
r127.0

107.2
107.8
107.7
105.7

r85.0
r84.5
r83.9
r83.2

r146.3
r148.8
r151.1
r152.6

r117.7
r118.7
r119.8
r120.5

r116.0
r116.7
r117.6
r120.2

ANNUAL

r127.3

107.1

r84.1

r149.7

r119.2

r117.6

I
II
III
IV

r128.2
r129.0
r130.4
r131.5

105.3
104.4
104.3
105.0

r82.1
r81.0
r80.0
r79.8

r155.8
r158.3
r161.1
r163.4

r121.9
r123.6
r125.0
r126.6

r121.6
r122.7
r123.5
r124.2

ANNUAL

r129.7

104.8

r80.7

r159.6

r124.2

r123.0

2004

I
r131.9
r105.5
r80.0
r166.4
r127.8
r126.2
II
135.3
107.2
79.2
168.8
128.1
124.8
-------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5)
2002

2003

I
II
III
IV

r7.9
r4.3
r3.0
r-4.5

2.0
2.2
-0.2
-7.3

r-5.5
r-2.0
r-3.1
r-2.9

r27.1
r6.9
r6.3
r4.1

r25.4
r3.3
r3.9
r2.2

r17.7
r2.5
r3.2
r9.0

ANNUAL

r4.8

-0.6

r-5.2

r9.3

r7.6

r4.3

I
II
III
IV

r3.9
r2.4
r4.4
r3.6

-1.5
-3.2
-0.4
2.6

r-5.2
r-5.5
r-4.6
r-0.9

r8.7
r6.4
r7.2
r5.8

r4.8
r5.7
r4.7
r5.0

r4.6
r3.9
r2.7
r2.2

ANNUAL

1.9

-2.2

-4.0

r6.6

r4.2

r4.6

2004

I
r1.2
r1.8
r0.6
r7.8
r4.0
r6.5
II
10.7
6.9
-3.5
5.9
1.1
-4.4
-------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year
2002

2003

2004

I
II
III
IV

r5.2
r5.4
r6.1
r2.6

-1.7
-0.4
0.5
-0.9

r-6.5
r-5.5
r-5.3
r-3.4

r6.4
r9.3
r10.8
r10.7

r5.1
r7.9
r9.0
r8.3

r1.2
r3.7
r4.5
r8.0

ANNUAL

r4.8

-0.6

r-5.2

r9.3

r7.6

r4.3

I
II
III
IV

r1.6
r1.1
r1.5
r3.6

-1.8
-3.1
-3.1
-0.7

r-3.3
r-4.2
r-4.6
r-4.1

r6.5
r6.4
r6.6
r7.0

r3.5
r4.1
r4.3
r5.1

r4.8
r5.2
r5.0
r3.3

ANNUAL

1.9

-2.2

-4.0

r6.6

r4.2

r4.6

I
r2.9
r0.2
-2.6
r6.8
r4.9
r3.8
II
4.9
2.7
-2.1
6.7
3.7
1.7
-------------------------------------------------------------------------------------------------See footnotes following Table 6.
August 10, 2004
r=revised
Source: Bureau of Labor Statistics

14

Table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor costs, unit profits,
and prices, seasonally adjusted
Output
Hourly
Real
Unit
Total
Unit
Implicit
Year
per allcompenhourly
Unit
nonunit
proprice
and
employee
Employee sation
compenlabor
labor
costs
fits
deflator
quarter
hour
Output hours
(1)
sation(2) costs
costs(6) (7)
(8)
(4)
---------------------------------------------------------------------------------------------------------Indexes 1992=100
2002

2003

I
II
III
IV

r126.3
r127.9
r129.2
r130.2

r149.7
r151.4
r152.3
r153.1

r118.5
r118.4
r117.9
117.6

r139.9
r141.3
r142.1
r142.9

r112.6
r112.7
r112.7
r112.8

r110.8
r110.5
r110.0
r109.7

r114.0
r112.9
r112.7
r112.3

r111.6
r111.2
r110.7
r110.4

r89.1
r94.7
r95.7
r101.8

r109.6
r109.7
109.4
109.6

ANNUAL

r128.4

r151.6

r118.1

r141.5

r112.7

r110.2

r113.0

r111.0

r95.4

109.6

I
II
III
IV

r131.3
r134.1
r137.2
r138.9

r153.4
r156.1
r159.4
r162.0

r116.8
r116.4
r116.2
116.7

r144.1
r146.3
r148.5
r150.0

r112.7
r114.2
r115.3
r116.2

r109.8
r109.1
r108.2
r108.0

r113.2
r111.4
r111.1
r110.5

r110.7
r109.7
r109.0
r108.7

r99.2
r111.0
r118.7
r123.2

r109.7
r109.8
109.9
r110.0

ANNUAL

r135.4

r157.7

r116.5

r147.3

r114.6

r108.8

r111.5

r109.5

r113.2

109.8

2004
I
r139.3
r163.7
r117.5
r151.5
r116.4
r108.8
r109.2
r108.9
r127.7
r110.6
---------------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5)
2002

2003

I
II
III
IV

r7.9
r4.9
r4.1
r3.4

r5.7
r4.8
r2.3
r2.1

r-2.0
r-0.1
r-1.7
r-1.2

r1.7
r4.0
r2.3
r2.2

r0.4
r0.4
r0.0
r0.3

r-5.8
r-0.9
r-1.7
r-1.1

r-7.3
r-3.7
r-0.9
r-1.4

r-6.2
r-1.7
r-1.5
r-1.2

r90.8
r27.4
r4.5
r28.1

r-1.6
r0.2
r-1.0
r0.9

ANNUAL

r4.4

r1.5

r-2.8

r3.1

r1.4

r-1.3

r-0.2

r-1.0

r15.4

0.1

I
II
III
IV

r3.2
r9.1
r9.4
r5.0

r0.6
r7.4
r8.8
r6.7

r-2.5
r-1.5
r-0.6
1.6

r3.6
r6.2
r6.2
r4.2

r-0.2
r5.5
r3.6
r3.4

r0.4
r-2.6
r-3.0
r-0.8

r3.0
r-6.2
r-1.0
r-2.1

r1.1
r-3.6
r-2.5
r-1.2

r-10.0
r56.4
r30.8
r16.1

r0.1
r0.5
r0.2
r0.4

ANNUAL

r5.4

r4.0

r-1.3

r4.0

r1.7

r-1.3

r-1.3

r-1.3

r18.7

0.2

2004
I
r1.3
r4.1
r2.7
r4.1
r0.5
2.7
r-4.6
r0.7
r15.5
r2.1
---------------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year
2002

2003

I
II
III
IV

r3.4
r4.2
r5.0
5.1

r-1.1
r0.8
r2.5
r3.7

-4.3
r-3.2
r-2.4
r-1.3

r3.2
r3.4
r3.1
r2.5

r2.0
r2.1
r1.4
r0.3

r-0.2
r-0.8
r-1.8
r-2.4

r4.0
r0.6
r-1.7
r-3.3

r0.9
r-0.4
r-1.8
r-2.7

r1.5
r8.4
r20.6
r34.3

r1.0
r0.2
r-0.4
r-0.4

ANNUAL

r4.4

r1.5

r-2.8

r3.1

r1.4

r-1.3

r-0.2

r-1.0

r15.4

0.1

I
II
III
IV

r3.9
r4.9
r6.2
r6.6

r2.5
r3.1
r4.7
r5.8

r-1.4
r-1.7
r-1.5
r-0.8

r3.0
r3.6
r4.5
r5.0

r0.1
r1.4
2.3
r3.1

r-0.9
-1.3
r-1.6
r-1.5

r-0.8
r-1.4
r-1.4
r-1.6

-0.8
r-1.3
r-1.6
r-1.6

r11.3
r17.2
r23.9
r20.9

r0.1
r0.1
0.4
r0.3

ANNUAL

r5.4

r4.0

r-1.3

r4.0

r1.7

r-1.3

r-1.3

r-1.3

r18.7

0.2

2004
I
r6.2
6.7
r0.5
r5.1
r3.2
r-1.0
r-3.5
r-1.7
r28.7
r0.8
---------------------------------------------------------------------------------------------------------See footnotes following Table 6.
August 10, 2004
r=revised
Source: Bureau of Labor Statistics

15
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. Compensation and hours 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 –1.4 and +1.4 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 first quarter of 2004.

Footnotes, Tables 1-6
(1) Wages and salaries of employees plus employers' contributions for social insurance and
private benefit plans. Except for nonfinancial corporations, where there are no selfemployed, 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 1978-2003 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 from the original data rather
than index numbers. Annual changes: Percent change between annual average levels.
(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.

16
Appendix table 1. Business sector: Revised productivity, hourly compensation, unit labor costs, and prices,
seasonally adjusted
Real
Year
Output per
Hours
CompensacompensaUnit
Unit nonImplicit
and
hour of
of all
tion per
tion per
labor
labor pay- price
quarter
all persons Output
persons
hour (1)
hour (2)
costs
ments (3)
deflator (4)
--------------------------------------------------------------------------------------------------------Indexes 1992=100
1999

2000

2001

I
II
III
IV

111.5
r111.8
r112.6
r114.4

132.7
133.9
135.7
138.5

r118.9
r119.8
r120.5
r121.1

r124.2
r124.6
r125.7
r128.0

r107.9
r107.4
r107.6
r108.8

111.3
111.4
111.6
r112.0

108.5
r108.9
r109.5
r109.8

110.3
110.5
110.8
111.1

ANNUAL

r112.6

135.2

r120.1

r125.6

r107.9

111.6

109.2

110.7

I
II
III
IV

r114.0
r116.2
r115.9
r117.1

138.6
141.1
140.8
141.5

r121.6
r121.5
r121.5
r120.8

r132.4
r133.0
r135.6
r136.5

r111.5
r111.0
r112.2
r112.2

r116.2
114.4
r117.0
r116.6

r105.2
r109.4
r106.2
107.9

112.1
112.6
112.9
113.3

ANNUAL

r115.9

140.5

r121.3

r134.5

r111.8

r116.1

107.2

112.7

I
II
III
IV

r117.0
r118.4
r118.8
r120.9

r141.1
r141.4
r140.3
r141.0

r120.7
r119.4
r118.1
r116.6

r138.8
r139.7
r140.4
141.5

r113.0
r112.8
r113.2
114.2

r118.7
r117.9
r118.2
r117.0

r106.4
r109.9
r110.2
r113.1

114.1
r114.9
115.2
r115.6

ANNUAL

r118.8

r141.0

r118.7

r140.1

r113.3

r118.0

r109.9

114.9

--------------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5)
1999

2000

2001

I
II
III
IV

r3.7
r0.8
r2.9
r6.5

3.7
3.8
5.4
8.4

r0.0
r3.0
r2.4
r1.8

r8.3
r1.2
r3.6
r7.7

r6.6
r-1.6
0.6
r4.5

4.4
r0.4
0.7
1.1

r-4.0
r1.4
2.3
r1.0

1.2
0.8
1.3
1.1

ANNUAL

2.9

5.1

r2.2

4.8

r2.6

1.8

-0.6

0.9

I
II
III
IV

r-1.4
r8.0
r-0.9
r4.2

0.3
7.5
-0.8
2.0

1.7
r-0.5
r0.1
r-2.1

14.5
r1.6
r8.1
r2.9

r10.3
r-1.6
r4.2
r0.0

16.0
-5.9
r9.1
r-1.2

r-15.7
r17.1
r-11.2
6.3

3.4
1.8
1.3
1.4

ANNUAL

2.9

3.9

1.0

r7.1

3.6

4.0

-1.8

1.8

I
II
III
IV

r-0.5
r5.1
r1.3
r7.2

r-1.1
r0.8
r-3.1
r1.8

r-0.6
r-4.1
r-4.3
-5.0

r6.8
r2.5
r2.2
r3.1

r3.1
r-0.8
r1.2
r3.7

r7.4
r-2.5
r0.8
r-3.8

r-5.4
r13.8
r1.3
r10.9

2.7
r3.0
r1.0
r1.3

ANNUAL

r2.5

r0.3

-2.1

r4.2

1.3

r1.6

r2.5

r2.0

--------------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year
1999

2000

2001

I
II
III
IV

r2.8
2.9
r2.5
r3.5

4.9
5.1
5.2
5.3

r2.0
2.2
r2.6
r1.8

r5.6
r4.6
r3.9
r5.2

r4.0
2.5
r1.5
r2.5

2.7
1.6
1.4
r1.7

-2.6
-0.4
r0.4
0.2

0.7
0.9
1.0
1.1

ANNUAL

2.9

5.1

r2.2

4.8

r2.6

1.8

-0.6

0.9

I
II
III
IV

r2.2
3.9
3.0
2.4

4.5
5.4
3.8
2.2

r2.2
1.4
0.8
-0.2

r6.6
6.7
7.9
6.7

r3.3
r3.4
4.3
r3.1

r4.4
2.7
4.8
r4.1

-3.0
0.5
-3.0
r-1.7

1.6
1.9
1.9
2.0

ANNUAL

2.9

3.9

1.0

r7.1

3.6

4.0

-1.8

1.8

I
II
III
IV

r2.6
r1.9
r2.5
r3.2

r1.8
r0.2
r-0.4
r-0.4

-0.8
-1.7
r-2.8
-3.5

r4.8
r5.0
r3.6
r3.6

r1.4
r1.6
r0.9
r1.8

r2.2
r3.0
r1.0
r0.4

r1.1
r0.4
r3.7
r4.8

1.8
2.1
2.0
r2.0

ANNUAL

r2.5

r0.3

-2.1

r4.2

1.3

r1.6

r2.5

r2.0

--------------------------------------------------------------------------------------------------------See footnotes following Table 6.
August 10, 2004
r=revised
Source: Bureau of Labor Statistics

17
Appendix table 2. Nonfarm business sector: Revised productivity, hourly compensation, unit labor costs, and
prices, seasonally adjusted
Real
Year
Output per
Hours
CompensacompensaUnit
Unit nonImplicit
and
hour of
of all
tion per
tion per
labor
labor pay- price
quarter
all persons Output
persons
hour (1)
hour (2)
costs
ments (3)
deflator (4)
--------------------------------------------------------------------------------------------------------Indexes 1992=100
1999

2000

2001

I
II
III
IV

r111.3
r111.5
r112.3
r114.2

133.0
134.3
136.1
138.9

119.6
r120.4
r121.2
r121.6

r123.6
r124.0
r125.1
r127.7

r107.4
r107.0
r107.1
r108.5

111.1
111.2
111.4
r111.8

r109.5
r110.5
111.3
r111.6

110.5
111.0
111.3
111.7

ANNUAL

r112.3

135.6

r120.7

r125.1

r107.5

r111.4

r110.7

111.1

I
II
III
IV

r113.7
r115.8
115.5
r116.6

138.8
141.4
141.1
141.8

r122.1
r122.1
r122.1
r121.6

r132.1
r132.4
r135.1
r135.9

r111.2
r110.6
r111.8
r111.6

r116.2
r114.4
116.9
116.5

r106.6
r111.0
107.8
r109.4

112.6
113.1
113.5
113.9

ANNUAL

r115.5

140.8

r121.9

r134.0

r111.4

116.0

r108.7

113.3

I
II
III
IV

r116.5
r118.1
r118.5
r120.4

r141.4
r141.9
r140.8
r141.2

r121.4
r120.2
r118.9
r117.3

r138.1
r138.9
r139.6
140.7

r112.5
r112.2
r112.5
r113.5

r118.6
r117.6
r117.8
r116.8

r107.9
r111.6
r111.9
r114.7

114.6
r115.4
115.6
116.0

ANNUAL

r118.3

r141.3

r119.4

r139.3

r112.7

r117.7

r111.5

115.4

--------------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5)
1999

2000

2001

I
II
III
IV

r3.1
r0.9
r2.9
r6.9

3.7
3.7
5.6
8.4

r0.6
r2.8
r2.6
r1.4

r7.5
r1.4
r3.5
r8.4

r5.9
r-1.5
r0.4
r5.3

r4.3
r0.5
0.6
r1.4

-3.6
r3.5
2.8
r1.3

1.3
1.6
1.4
1.4

ANNUAL

2.8

5.2

2.3

r4.6

2.5

1.8

-0.1

1.1

I
II
III
IV

-1.7
r7.4
r-0.8
r3.7

-0.1
7.5
-0.8
2.2

1.6
r0.1
r0.0
r-1.5

14.7
r1.0
r8.2
r2.4

10.5
r-2.2
r4.3
r-0.5

16.7
-6.0
r9.1
-1.3

r-16.8
r17.4
r-11.0
6.3

3.3
1.8
1.4
1.3

ANNUAL

2.8

3.8

1.0

r7.1

3.6

4.2

r-1.8

1.9

I
II
III
IV

r-0.4
r5.5
r1.4
r6.6

r-1.1
r1.2
r-2.9
r1.2

-0.7
r-4.1
r-4.3
-5.1

r6.8
r2.2
r2.1
r3.2

r3.0
r-1.0
r1.1
r3.7

r7.2
r-3.1
r0.6
r-3.3

r-5.4
r14.4
r0.9
r10.5

r2.6
r2.7
r0.7
r1.5

ANNUAL

r2.5

r0.4

-2.0

r4.0

1.1

r1.5

r2.6

1.9

--------------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year
1999

2000

2001

I
II
III
IV

r2.7
2.6
r2.3
r3.4

4.9
5.1
5.2
5.4

r2.2
r2.4
r2.8
r1.8

5.5
4.3
r3.6
r5.2

r3.8
2.3
r1.3
r2.5

2.7
1.7
1.3
r1.7

-2.5
0.1
0.9
1.0

0.7
1.1
1.2
1.4

ANNUAL

2.8

5.2

2.3

r4.6

2.5

1.8

-0.1

1.1

I
II
III
IV

r2.2
3.8
2.9
2.1

4.4
5.3
3.6
2.1

r2.1
r1.4
r0.8
0.0

r6.9
r6.8
8.0
r6.4

r3.6
r3.4
4.4
r2.9

r4.6
2.8
5.0
4.3

-2.7
r0.4
r-3.1
-2.0

1.9
2.0
2.0
2.0

ANNUAL

2.8

3.8

1.0

r7.1

3.6

4.2

r-1.8

1.9

I
II
III
IV

r2.4
r2.0
r2.6
r3.3

r1.9
r0.4
r-0.2
r-0.4

r-0.5
-1.6
r-2.7
r-3.6

r4.5
r4.9
r3.3
r3.5

r1.1
r1.4
r0.6
r1.7

r2.1
r2.8
r0.8
r0.3

r1.2
r0.6
r3.8
r4.8

1.8
r2.0
1.8
r1.9

ANNUAL

r2.5

r0.4

-2.0

r4.0

1.1

r1.5

r2.6

1.9

--------------------------------------------------------------------------------------------------------See footnotes following Table 6.
August 10, 2004
r=revised
Source: Bureau of Labor Statistics

18
Appendix table 3. Manufacturing sector: Revised productivity, hourly compensation, and unit labor costs,
seasonally adjusted
Real
Year
Output per
Hours
CompensacompensaUnit
and
hour of
of all
tion per
tion per
labor
quarter
all persons
Output
persons
hour (1)
hour (2)
costs
-------------------------------------------------------------------------------------------------Indexes 1992=100
1999

2000

2001

I
II
III
IV

r126.6
127.4
r127.6
r130.7

132.9
133.9
134.7
136.8

r105.0
105.1
r105.6
r104.6

r121.6
122.3
r123.7
r127.0

r105.6
105.5
r105.9
r107.9

96.0
96.0
r97.0
97.2

ANNUAL

r128.1

134.6

r105.1

r123.7

r106.2

96.6

I
II
III
IV

132.4
r134.0
r134.0
r135.2

137.9
139.7
139.1
137.8

r104.1
r104.2
r103.8
r101.9

133.4
132.6
r136.0
r137.1

112.3
r110.8
r112.6
r112.6

r100.7
99.0
r101.6
r101.4

ANNUAL

r134.1

138.6

r103.4

135.0

r112.2

r100.7

I
II
III
IV

r134.9
r135.8
r136.9
r140.4

135.2
133.3
131.1
129.7

r100.2
r98.2
r95.8
r92.4

r138.5
137.4
r137.3
r139.4

r112.7
111.0
r110.6
r112.5

r102.6
r101.2
r100.3
r99.3

ANNUAL

r136.9

132.3

r96.6

r138.1

r111.7

r100.9

-------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5)
1999

2000

2001

I
II
III
IV

r4.3
r2.4
r0.7
r10.3

1.8
2.9
2.4
6.3

r-2.4
r0.5
r1.7
r-3.6

r3.3
r2.5
r4.6
r11.1

r1.7
r-0.4
r1.5
r7.9

-0.9
r0.1
r3.9
r0.8

ANNUAL

r3.6

2.9

r-0.6

r3.9

r1.8

0.3

I
II
III
IV

r5.4
r4.9
r-0.2
r3.9

3.5
5.2
-1.7
-3.6

r-1.8
r0.4
r-1.5
r-7.2

r21.7
r-2.4
r10.7
r3.1

r17.3
r-5.5
r6.7
r0.2

r15.5
-6.9
r10.9
r-0.8

ANNUAL

4.7

3.0

-1.6

9.1

5.6

4.2

I
II
III
IV

r-1.0
r2.7
r3.1
r10.9

-7.5
-5.4
-6.3
-4.3

r-6.6
r-7.8
r-9.2
r-13.7

r4.1
r-3.1
r-0.3
r6.3

r0.4
r-6.1
r-1.2
r7.0

r5.1
r-5.6
r-3.3
r-4.1

ANNUAL

r2.1

-4.6

r-6.5

r2.3

-0.4

0.2

-------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year
1999

2000

2001

I
II
III
IV

r4.0
3.8
r2.2
r4.3

2.5
2.8
3.0
3.3

r-1.4
-0.9
r0.8
r-1.0

r4.3
r3.2
r2.9
r5.3

r2.7
1.2
r0.5
r2.6

r0.2
-0.5
0.7
1.0

ANNUAL

r3.6

2.9

r-0.6

r3.9

r1.8

0.3

I
II
III
IV

r4.6
r5.2
r5.0
3.5

3.8
4.4
3.3
0.8

r-0.8
r-0.8
r-1.6
-2.6

r9.7
8.4
r10.0
7.9

r6.4
r5.0
r6.3
r4.4

4.9
r3.0
4.7
4.3

ANNUAL

4.7

3.0

-1.6

9.1

5.6

4.2

I
II
III
IV

r1.9
r1.3
r2.2
3.8

-2.0
-4.6
-5.7
-5.9

r-3.8
r-5.8
-7.7
-9.4

r3.8
3.6
r0.9
r1.7

r0.4
r0.2
r-1.7
r-0.1

1.9
r2.2
r-1.2
r-2.1

ANNUAL

r2.1

-4.6

r-6.5

r2.3

-0.4

0.2

-------------------------------------------------------------------------------------------------See footnotes following Table 6.
August 10, 2004
r=revised
Source: Bureau of Labor Statistics

19
Appendix table 4. Durable manufacturing sector: Revised productivity, hourly compensation, and
unit labor costs, seasonally adjusted
Real
Year
Output per
Hours
CompensacompensaUnit
and
hour of
of all
tion per
tion per
labor
quarter
all persons
Output
persons
hour (1)
hour (2)
costs
-------------------------------------------------------------------------------------------------Indexes 1992=100
1999

2000

2001

I
II
III
IV

r141.3
r142.9
r143.0
146.0

155.4
157.3
159.6
161.6

r110.0
r110.0
r111.6
110.7

r121.2
r122.2
123.6
r127.4

r105.3
r105.4
105.8
108.2

85.8
85.5
r86.4
87.2

ANNUAL

r143.3

158.5

r110.6

r123.6

r106.2

86.2

I
II
III
IV

r149.2
r150.8
r151.1
r151.7

164.5
167.1
166.7
164.6

r110.3
r110.8
r110.3
r108.5

r134.6
r133.0
r136.9
r136.9

r113.3
r111.1
r113.3
r112.5

90.2
88.2
90.6
90.3

ANNUAL

r150.9

165.7

109.9

r135.5

r112.6

89.8

I
II
III
IV

150.9
r151.4
r152.9
r157.0

160.5
157.5
154.0
151.6

106.4
r104.0
100.7
r96.5

r137.8
r136.9
r136.8
139.4

r112.2
r110.6
r110.3
112.5

91.4
r90.4
r89.5
r88.8

ANNUAL

153.0

155.9

101.9

137.7

r111.4

90.0

-------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5)
1999

2000

2001

I
II
III
IV

r7.1
r4.8
r0.2
r8.6

2.5
4.8
5.9
5.2

r-4.2
r0.0
r5.6
r-3.1

r4.6
r3.4
r4.4
r12.9

r3.0
r0.4
r1.3
r9.6

r-2.3
r-1.4
r4.2
r3.9

ANNUAL

r5.9

5.5

r-0.3

r4.5

r2.4

-1.3

I
II
III
IV

r9.0
r4.5
r0.8
r1.6

7.5
6.3
-1.0
-4.7

r-1.4
r1.8
r-1.7
r-6.2

r24.7
r-4.6
r12.3
r0.0

r20.2
r-7.6
r8.3
r-2.8

14.4
r-8.7
r11.4
r-1.5

ANNUAL

5.3

4.6

-0.7

r9.6

6.1

4.2

I
II
III
IV

r-2.2
r1.5
r4.1
r11.2

-9.7
-7.3
-8.5
-6.2

r-7.7
r-8.7
r-12.1
r-15.6

r2.7
r-2.6
r-0.3
r7.7

r-0.9
r-5.7
r-1.2
r8.3

r5.0
r-4.0
r-4.2
r-3.1

ANNUAL

r1.4

-5.9

r-7.2

r1.6

-1.1

0.2

-------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year
1999

2000

2001

I
II
III
IV

r6.9
7.0
r4.5
r5.1

5.4
6.1
6.0
4.6

r-1.4
-0.9
r1.5
r-0.5

r4.6
3.7
r3.5
r6.2

r3.0
r1.6
r1.2
r3.5

r-2.2
-3.1
r-0.9
1.1

ANNUAL

r5.9

5.5

r-0.3

r4.5

r2.4

-1.3

I
II
III
IV

r5.6
r5.5
5.6
r3.9

5.8
6.2
4.5
1.9

0.2
r0.7
-1.1
-1.9

r11.0
r8.8
10.8
r7.5

7.6
r5.4
7.1
r4.0

5.1
3.1
r4.9
3.5

ANNUAL

5.3

4.6

-0.7

r9.6

6.1

4.2

I
II
III
IV

r1.1
r0.4
1.2
r3.5

-2.4
-5.7
-7.6
-7.9

r-3.5
r-6.1
-8.7
r-11.1

r2.4
3.0
r-0.1
r1.8

r-0.9
-0.4
r-2.7
r0.0

1.3
r2.5
r-1.3
r-1.7

ANNUAL

r1.4

-5.9

r-7.2

r1.6

-1.1

0.2

-------------------------------------------------------------------------------------------------See footnotes following Table 6.
August 10, 2004
r=revised
Source: Bureau of Labor Statistics

20
Appendix table 5. Nondurable manufacturing sector: Revised productivity, hourly compensation, and
unit labor costs, seasonally adjusted
Real
Year
Output per
Hours
CompensacompensaUnit
and
hour of
of all
tion per
tion per
labor
quarter
all persons
Output
persons
hour (1)
hour (2)
costs
-------------------------------------------------------------------------------------------------Indexes 1992=100
1999

2000

2001

I
II
III
IV

r112.9
r112.7
r113.3
r116.8

110.0
110.1
109.5
111.6

r97.5
r97.8
r96.6
r95.6

r120.8
r121.1
r122.2
r124.5

r104.9
r104.4
r104.6
r105.7

107.0
r107.4
107.8
106.6

ANNUAL

r113.9

110.3

r96.9

r122.1

r104.9

107.2

I
II
III
IV

r116.9
r118.5
r117.9
r120.0

111.0
111.9
111.1
110.4

95.0
94.5
r94.2
r92.0

r129.1
r129.7
r132.1
r135.1

108.7
r108.3
r109.3
r111.0

r110.4
r109.5
r112.0
r112.6

ANNUAL

r118.5

111.1

r93.8

r131.7

r109.4

111.1

I
II
III
IV

r119.9
r121.0
r121.1
r123.8

109.0
108.2
107.2
106.7

90.9
r89.4
r88.5
r86.2

r137.5
r136.1
r136.3
r137.8

r112.0
r110.0
r109.9
r111.2

r114.6
r112.5
r112.6
111.3

ANNUAL

r121.4

107.8

r88.8

r136.9

r110.7

112.8

-------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5)
1999

2000

2001

I
II
III
IV

r0.6
r-0.8
r2.4
r12.6

1.4
0.4
-2.3
7.8

r0.8
r1.2
r-4.6
r-4.3

r1.5
r0.8
r3.9
r7.6

r-0.1
r-2.0
r0.8
r4.4

r0.9
1.7
1.4
-4.5

ANNUAL

r0.8

-0.3

r-1.1

r2.7

r0.6

1.9

I
II
III
IV

r0.4
r5.7
r-1.9
r7.2

-2.2
3.5
-3.1
-2.3

r-2.5
r-2.1
r-1.2
r-8.9

r15.7
r2.0
r7.6
r9.4

r11.5
r-1.3
r3.7
r6.3

r15.2
r-3.5
r9.6
r2.0

ANNUAL

r4.0

0.7

r-3.2

r7.8

r4.3

3.6

I
II
III
IV

r-0.2
r3.6
r0.3
r9.2

-4.9
-3.0
-3.7
-2.0

r-4.7
r-6.3
r-4.0
r-10.2

r7.4
r-3.9
r0.5
r4.4

3.6
r-6.9
r-0.4
r5.0

r7.5
r-7.2
r0.2
r-4.4

ANNUAL

r2.5

-3.0

r-5.3

r4.0

r1.2

1.5

-------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year
1999

2000

2001

I
II
III
IV

r0.5
-0.2
r-0.5
r3.6

-1.0
-1.1
-0.8
1.8

r-1.5
-0.9
r-0.3
r-1.7

r3.7
2.4
r1.4
r3.4

r2.1
0.4
r-0.9
r0.8

3.2
2.6
r1.9
r-0.1

ANNUAL

r0.8

-0.3

r-1.1

r2.7

r0.6

1.9

I
II
III
IV

r3.5
r5.2
r4.0
r2.8

0.9
1.6
1.4
-1.1

r-2.6
r-3.4
r-2.5
r-3.7

r6.8
r7.1
r8.1
r8.5

r3.5
r3.7
r4.5
5.0

r3.2
r1.9
r3.9
r5.6

ANNUAL

r4.0

0.7

r-3.2

r7.8

r4.3

3.6

I
II
III
IV

r2.6
r2.1
r2.7
r3.2

-1.8
-3.3
-3.5
-3.4

r-4.3
r-5.3
r-6.0
r-6.3

r6.5
r5.0
r3.2
r2.0

r3.0
r1.5
r0.5
r0.2

3.8
r2.8
r0.5
r-1.1

ANNUAL

r2.5

-3.0

r-5.3

r4.0

r1.2

1.5

-------------------------------------------------------------------------------------------------See footnotes following Table 6.
August 10, 2004
r=revised
Source: Bureau of Labor Statistics

21
Appendix table 6. Nonfinancial corporations: Revised productivity, hourly compensation, unit labor costs,
unit profits, and prices, seasonally adjusted
Output
Hourly
Real
Unit
Total
Unit
Implicit
Year
per allcompenhourly
Unit
nonunit
proprice
and
employee
Employee sation
compenlabor
labor
costs
fits
deflator
quarter
hour
Output hours
(1)
sation(2) costs
costs(6) (7)
(8)
(4)
---------------------------------------------------------------------------------------------------------Indexes 1992=100
1999

2000

2001

I
II
III
IV

r115.9
r116.4
r116.4
r117.7

140.8
142.4
143.5
146.0

r121.5
r122.3
r123.3
r124.0

r122.6
r122.8
r123.5
r125.2

r106.5
r105.9
r105.7
r106.4

105.8
105.5
106.1
106.4

99.7
100.3
101.6
102.2

104.2
104.1
104.9
105.2

134.1
134.4
126.9
124.1

106.8
106.8
106.9
106.9

ANNUAL

r116.6

143.2

r122.8

r123.5

r106.1

106.0

101.0

104.6

129.8

106.9

I
II
III
IV

r119.7
r120.4
r121.3
r121.6

149.4
150.2
151.5
151.5

r124.7
r124.8
r125.0
r124.6

r129.7
r130.4
r132.9
r134.4

r109.2
r108.9
r110.0
r110.5

108.3
108.3
109.6
110.6

102.5
104.1
105.4
107.1

106.8
107.2
108.5
109.7

115.3
116.6
108.0
97.6

107.5
108.0
108.4
108.6

ANNUAL

r120.8

150.7

r124.7

r132.0

r109.7

109.2

104.8

108.0

109.3

108.1

I
II
III
IV

r122.2
r122.8
r123.0
r123.9

r151.3
r150.3
r148.6
r147.6

r123.9
r122.4
r120.8
r119.1

r135.6
r136.7
r137.9
r139.3

r110.4
r110.4
r111.1
r112.5

r111.0
r111.4
r112.1
r112.4

r109.6
r112.2
r114.7
r116.2

r110.6
r111.6
r112.8
r113.4

r87.8
r87.3
r79.4
r75.8

r108.6
r109.4
109.8
r110.1

ANNUAL

r123.0

r149.4

r121.5

r137.3

r111.1

r111.7

r113.2

r112.1

r82.6

109.5

---------------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5)
1999

2000

2001

I
II
III
IV

r7.2
r1.7
r0.0
r4.6

8.6
4.5
3.1
7.2

r1.3
r2.7
r3.1
r2.5

r10.2
r0.6
r2.2
r5.6

r8.5
r-2.2
r-0.8
r2.6

2.8
-1.1
2.3
1.0

-5.2
2.5
5.3
2.2

0.7
-0.2
3.0
1.3

3.7
0.9
-20.3
-8.6

1.0
0.0
0.2
0.2

ANNUAL

r3.1

5.8

2.6

4.6

r2.4

1.4

1.1

1.3

-5.6

0.5

I
II
III
IV

r7.1
r2.1
r3.0
r1.0

9.6
2.4
3.5
-0.1

r2.3
0.2
r0.5
r-1.1

r15.1
2.2
r7.9
r4.7

r11.0
-1.0
r4.0
r1.8

7.5
0.1
4.8
3.7

1.3
6.5
5.0
6.6

5.8
1.7
4.8
4.4

-25.6
4.6
-26.3
-33.4

2.2
2.0
1.5
0.5

ANNUAL

3.6

5.2

r1.5

6.8

r3.4

3.1

3.8

3.3

-15.8

1.2

I
II
III
IV

r2.0
r2.0
r0.8
r3.1

r-0.5
-2.7
r-4.4
r-2.6

r-2.4
r-4.6
r-5.2
r-5.5

r3.4
r3.4
r3.5
r4.3

r-0.3
r0.2
r2.5
r4.9

r1.3
r1.4
r2.7
r1.2

r9.8
r9.8
r9.0
r5.4

r3.5
r3.6
r4.3
r2.3

r-34.4
r-2.0
r-31.8
r-16.7

r0.0
r3.2
r1.4
r1.0

ANNUAL

1.8

r-0.8

r-2.5

r4.1

r1.3

r2.3

r8.0

r3.8

r-24.4

1.2

---------------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year
1999

2000

2001

I
II
III
IV

r3.9
r3.4
r2.0
r3.3

6.2
6.0
5.1
5.8

r2.3
r2.5
r3.1
r2.4

r5.6
4.5
r3.6
r4.6

r4.0
r2.5
r1.3
r1.9

1.7
1.1
1.6
1.2

0.3
0.9
2.1
1.1

1.3
1.0
1.7
1.2

-4.2
-2.0
-9.5
-6.6

0.7
0.7
0.4
0.3

ANNUAL

r3.1

5.8

2.6

4.6

r2.4

1.4

1.1

1.3

-5.6

0.5

I
II
III
IV

r3.3
3.4
4.2
r3.3

6.1
5.5
5.6
3.8

r2.7
r2.0
r1.4
r0.5

r5.8
r6.2
r7.6
7.4

r2.5
2.8
r4.0
r3.8

2.4
2.7
3.3
4.0

2.8
3.8
3.7
4.8

2.5
3.0
3.4
4.2

-14.0
-13.2
-14.9
-21.4

0.6
1.1
1.5
1.5

ANNUAL

3.6

5.2

r1.5

6.8

r3.4

3.1

3.8

3.3

-15.8

1.2

I
II
III
IV

r2.0
r2.0
r1.4
r2.0

r1.3
r0.0
r-1.9
r-2.6

-0.7
r-1.9
r-3.3
-4.4

r4.5
r4.8
3.7
3.6

r1.1
r1.4
1.0
1.8

r2.4
r2.8
r2.3
r1.7

r7.0
r7.8
r8.8
r8.5

r3.6
r4.1
r4.0
r3.4

r-23.8
r-25.1
r-26.5
r-22.3

r1.0
1.3
r1.3
r1.4

ANNUAL

1.8

r-0.8

r-2.5

r4.1

r1.3

r2.3

r8.0

r3.8

r-24.4

1.2

---------------------------------------------------------------------------------------------------------See footnotes following Table 6.
August 10, 2004
r=revised
Source: Bureau of Labor Statistics

22
Appendix table 7. Business sector: Productivity, hourly compensation, unit labor costs, and prices
Indexes 1992=100
Real
Output per
Hours
Compensacompensa- Unit
Unit nonImplicit
hour of
of all
tion per
tion per
labor
labor pay- price
Year
all persons Output
persons
hour (1)
hour (2)
costs
ments (3)
deflator (4)
------------------------------------------------------------------------------------------------------1947
r32.4
20.4
r63.0
7.0
r40.9
21.7
18.7
20.6
1948
r33.9
21.5
r63.5
7.6
r41.0
22.5
20.7
21.8
1949
r34.7
21.3
r61.4
7.7
r42.1
22.3
20.5
21.6
1950
1951
1952
1953
1954

r37.5
r38.7
r39.7
r41.1
r42.0

23.4
24.9
25.7
26.9
26.6

r62.3
r64.4
r64.6
r65.4
r63.2

r8.3
r9.1
9.6
10.2
r10.6

r44.5
r45.2
r47.0
r49.6
r50.8

22.1
r23.5
24.2
24.9
25.1

21.6
r23.7
23.2
22.6
22.6

21.9
23.6
23.8
24.0
24.2

1955
1956
1957
1958
1959

r43.8
r43.8
r45.1
r46.4
r48.1

28.7
29.1
29.6
29.1
31.4

r65.6
r66.6
r65.7
r62.7
r65.4

10.8
11.5
r12.3
12.8
r13.4

r52.3
r55.0
r56.7
r57.5
r59.5

24.8
26.4
27.2
27.7
27.8

24.0
23.5
24.2
24.8
25.2

24.5
25.3
26.1
26.6
26.8

1960
1961
1962
1963
1964

r48.9
r50.6
r52.9
r55.0
r56.8

32.0
32.7
34.8
36.4
38.7

r65.5
r64.5
r65.7
r66.2
r68.1

r13.9
r14.5
r15.1
r15.6
r16.2

r60.9
r62.6
r64.7
r66.1
r67.7

28.4
28.5
28.5
28.4
28.5

24.9
25.3
26.1
26.6
27.3

27.1
27.3
27.6
27.7
28.1

1965
1966
1967
1968
1969

r58.8
r61.2
r62.5
r64.6
r64.9

41.4
44.2
45.1
47.3
48.8

r70.4
r72.3
r72.1
r73.2
r75.1

r16.8
r17.9
r19.0
r20.5
r21.9

r69.1
r71.7
r73.5
r76.3
r77.4

28.6
29.3
30.3
31.7
r33.8

28.4
29.0
29.5
30.4
30.8

28.5
29.2
30.0
31.2
32.6

1970
1971
1972
1973
1974

r66.2
r69.0
r71.2
r73.5
r72.3

48.7
50.6
53.9
57.6
56.8

r73.6
r73.3
r75.6
r78.5
r78.6

r23.6
r25.1
r26.7
r28.9
r31.7

r78.8
r80.2
r82.6
r84.4
r83.3

35.6
36.3
37.4
39.4
r43.9

r31.4
r34.1
35.7
r37.5
40.0

34.1
35.5
36.8
38.7
42.4

1975
1976
1977
1978
1979

r74.8
r77.2
r78.5
r79.3
r79.4

56.3
60.0
63.3
67.3
69.6

r75.3
r77.7
r80.7
r84.8
r87.7

r35.0
r38.0
r41.0
r44.6
r48.9

r84.1
r86.4
r87.6
r89.1
r89.4

46.7
49.2
52.2
r56.2
61.6

46.3
r48.7
r51.5
54.8
r58.2

46.6
49.0
52.0
55.6
60.4

1980
1981
1982
1983
1984

r79.2
r80.8
80.2
83.1
85.3

68.8
70.7
68.6
72.3
78.6

r86.9
r87.5
85.5
87.0
92.1

r54.2
r59.4
63.6
r66.3
69.1

r89.2
r89.3
90.4
r90.4
r90.7

68.4
r73.5
79.3
79.7
81.0

61.3
r69.1
70.2
76.5
80.4

65.8
71.8
75.9
78.5
80.8

1985
1986
1987
1988
1989

r87.2
89.9
r90.4
91.7
r92.6

82.2
85.3
88.3
92.1
95.4

r94.2
r94.9
97.7
r100.3
103.0

r72.4
r76.2
79.0
83.1
r85.3

r91.9
r94.9
r95.3
96.6
r95.1

83.0
84.8
87.5
90.6
92.1

82.2
82.8
83.3
r85.4
91.5

82.7
84.1
85.9
88.6
91.9

1990
1991
1992
1993
1994

r94.5
96.0
100.0
100.3
r101.5

96.9
96.1
100.0
103.1
108.2

r102.5
r100.2
100.0
102.8
106.7

r90.6
r95.0
100.0
102.2
103.8

r96.2
r97.4
100.0
99.7
99.2

95.9
99.0
100.0
101.9
102.3

93.9
96.8
100.0
102.5
106.6

95.1
98.2
100.0
102.1
103.9

1995
1996
1997
1998
1999

r101.6
r104.6
106.5
r109.4
r112.6

111.4
116.5
122.7
128.6
135.2

r109.6
r111.4
r115.1
r117.6
r120.1

106.0
r109.6
r113.1
r119.9
r125.6

98.9
r99.6
r100.6
r105.1
r107.9

104.3
104.8
106.1
r109.6
111.6

108.2
r111.8
r113.8
r109.8
109.2

105.7
107.4
109.0
109.7
110.7

2000
r115.9
140.5
r121.3
r134.5
r111.8
r116.1
107.2
112.7
2001
r118.8
r141.0
r118.7
r140.1
r113.3
r118.0
r109.9
114.9
2002
r123.9
r143.5
r115.8
r144.5
r115.0
r116.6
r114.9
r116.0
2003
r129.5
r149.0
115.1
r150.5
r117.1
r116.2
r119.6
117.4
------------------------------------------------------------------------------------------------------See footnotes following Table 6.
August 10, 2004
r=revised
Source: Bureau of Labor Statistics

23
Appendix table 8. Nonfarm business sector:
Indexes 1992=100

Productivity, hourly compensation, unit labor costs, and prices

Real
Output per
Hours
Compensacompensa- Unit
Unit nonImplicit
hour of
of all
tion per
tion per
labor
labor pay- price
Year
all persons Output
persons
hour (1)
hour (2)
costs
ments (3)
deflator (4)
------------------------------------------------------------------------------------------------------1947
r37.0
20.1
r54.2
r7.5
r43.3
20.2
17.8
19.3
1948
r38.0
20.9
r55.1
8.1
r43.6
21.3
19.4
20.6
1949
r39.3
20.8
r53.0
8.3
r45.4
21.2
r20.0
20.8
1950
1951
1952
1953
1954

r41.9
r43.0
r43.8
r44.7
r45.6

22.9
24.6
25.3
26.6
26.1

r54.7
r57.3
r57.9
r59.4
r57.3

8.8
9.6
10.1
r10.7
11.0

r47.5
r47.8
r49.5
r51.9
r53.1

21.1
22.3
r23.2
23.9
24.2

20.8
22.4
22.3
22.2
22.3

21.0
22.4
22.8
23.3
23.5

1955
1956
1957
1958
1959

r47.5
r47.1
r48.3
r49.4
r51.2

28.3
28.8
29.4
28.7
31.2

r59.7
r61.1
r60.8
r58.2
r60.9

11.4
12.1
12.8
r13.4
r13.9

r55.3
r57.8
r59.2
r59.8
r61.8

24.1
25.8
26.6
27.1
27.1

23.6
23.1
23.8
24.1
24.9

23.9
24.8
25.6
26.0
26.3

1960
1961
1962
1963
1964

r51.8
r53.4
r55.8
r57.8
r59.5

31.8
32.4
34.6
36.2
38.7

r61.3
r60.6
r62.0
r62.7
r65.0

r14.5
r15.0
r15.6
r16.1
r16.6

r63.3
r64.8
r66.7
r68.1
r69.3

27.9
28.0
r27.9
27.8
27.9

24.3
24.8
r25.8
26.3
27.1

26.6
26.8
27.1
27.3
27.6

1965
1966
1967
1968
1969

r61.3
r63.5
r64.6
r66.8
r66.9

41.4
44.4
45.1
47.5
48.9

r67.5
r69.8
r69.8
r71.1
r73.1

17.1
r18.2
r19.2
r20.7
r22.1

r70.5
r72.6
r74.5
r77.1
r78.1

27.9
28.6
29.7
31.0
33.1

28.0
28.7
29.2
30.2
30.4

28.0
28.6
29.5
30.7
32.1

1970
1971
1972
1973
1974

r67.9
r70.6
r73.0
r75.3
r74.2

48.9
50.7
54.1
58.0
57.3

r72.0
r71.8
r74.1
r77.1
r77.2

r23.7
r25.2
r26.9
r29.1
r31.9

r79.1
r80.7
r83.2
r84.8
r83.8

34.9
35.7
36.8
38.6
43.0

31.1
r33.7
34.9
35.3
38.1

33.5
35.0
36.1
37.4
41.2

1975
1976
1977
1978
1979

r76.2
r78.7
r79.9
r81.0
r80.7

56.3
60.2
63.6
67.8
70.0

r73.9
r76.5
r79.6
r83.7
r86.6

r35.1
r38.1
r41.2
r44.8
r49.1

r84.5
r86.6
r88.0
r89.6
r89.7

46.1
48.4
51.5
55.3
60.8

44.8
47.8
50.7
53.4
56.5

45.6
48.1
51.2
54.6
59.2

1980
1981
1982
1983
1984

r80.6
r81.7
80.9
84.6
r86.3

69.2
70.7
68.4
72.9
78.9

r85.9
r86.5
84.6
86.2
91.4

r54.4
r59.7
64.0
66.6
r69.5

r89.5
r89.9
r90.8
90.9
91.1

67.5
73.1
79.1
78.8
80.5

60.4
67.8
r69.5
76.2
79.4

64.9
71.1
75.5
77.9
80.1

1985
1986
1987
1988
1989

r87.6
90.3
r90.7
92.1
92.8

82.2
85.4
88.4
92.4
95.7

r93.8
r94.6
97.5
r100.3
103.1

r72.6
r76.4
79.2
83.1
r85.2

r92.2
r95.2
95.4
96.6
r95.0

82.9
84.6
87.3
90.2
91.9

81.7
r82.6
r83.0
85.1
90.9

82.5
83.9
85.7
88.3
91.5

1990
1991
1992
1993
1994

r94.6
r96.1
100.0
r100.4
101.5

97.1
96.3
100.0
103.4
108.3

r102.7
r100.2
100.0
103.0
r106.6

r90.4
r95.0
100.0
r102.0
r103.8

r96.0
r97.4
100.0
99.5
99.1

95.6
98.8
100.0
101.6
102.2

93.6
97.0
100.0
102.9
107.1

94.9
98.1
100.0
102.1
104.0

1995
1996
1997
1998
1999

r102.0
r104.8
r106.5
r109.3
r112.3

111.8
116.8
122.8
128.9
135.6

109.5
r111.5
115.4
r117.9
r120.7

r105.9
r109.5
r112.9
r119.6
r125.1

r98.8
r99.5
r100.4
r104.9
r107.5

103.8
104.5
106.0
r109.4
r111.4

109.2
r112.0
r114.5
r110.8
r110.7

105.8
107.3
109.1
109.9
111.1

2000
r115.5
140.8
r121.9
r134.0
r111.4
116.0
r108.7
113.3
2001
r118.3
r141.3
r119.4
r139.3
r112.7
r117.7
r111.5
115.4
2002
r123.5
r143.9
r116.5
r143.8
r114.5
r116.5
r116.8
r116.6
2003
r129.0
r149.4
r115.8
r149.7
r116.5
r116.1
r121.1
117.9
------------------------------------------------------------------------------------------------------See footnotes following Table 6.
August 10, 2004
r=revised
Source: Bureau of Labor Statistics

24
Appendix table 9. Manufacturing sector:
Indexes 1992=100

Productivity, hourly compensation, and unit labor costs,

Real
Output per
Hours
CompensacompensaUnit
hour of
of all
tion per
tion per
labor
Year
all persons
Output
persons
hour (1)
hour (2)
costs
----------------------------------------------------------------------------------------------1987
r88.4
91.7
r103.8
r80.7
r97.3
r91.4
1988
r90.0
96.3
r107.0
r83.6
r97.2
92.8
1989
90.3
97.2
r107.6
r86.1
r96.0
95.3
1990
1991
1992
1993
1994

92.9
r95.4
100.0
102.7
r106.1

97.6
96.0
100.0
104.1
110.0

105.0
r100.5
100.0
101.4
103.8

90.1
r95.4
100.0
102.3
105.6

95.7
r97.8
100.0
99.8
100.9

97.0
100.0
100.0
99.6
99.6

1995
1996
1997
1998
1999

r109.9
113.9
r118.0
r123.6
r128.1

115.0
118.6
125.1
130.7
134.6

r104.6
r104.2
r106.0
r105.7
r105.1

r107.5
109.9
r112.1
r119.0
r123.7

r100.3
99.8
99.7
r104.4
r106.2

97.8
96.5
95.0
96.2
96.6

2000
r134.1
138.6
r103.4
135.0
r112.2
r100.7
2001
r136.9
132.3
r96.6
r138.1
r111.7
r100.9
2002
r146.5
131.5
r89.7
r147.3
r117.3
r100.6
2003
r154.0
131.6
r85.5
r159.9
r124.5
r103.8
----------------------------------------------------------------------------------------------See footnotes following Table 6.
August 10, 2004
r=revised
Source: Bureau of Labor Statistics

25
Appendix table 10. Durable manufacturing sector:
Indexes 1992=100

Productivity, hourly compensation, and unit labor costs,

Real
Output per
Hours
CompensacompensaUnit
hour of
of all
tion per
tion per
labor
Year
all persons
Output
persons
hour (1)
hour (2)
costs
----------------------------------------------------------------------------------------------1987
r89.3
95.1
r106.5
r80.7
r97.2
90.4
1988
r91.2
100.9
r110.6
r83.0
r96.5
90.9
1989
r91.2
101.1
r111.0
r85.5
r95.3
93.8
1990
1991
1992
1993
1994

r93.2
r94.5
100.0
r104.5
r109.7

100.1
95.9
100.0
106.0
114.8

107.4
r101.4
100.0
r101.4
r104.7

89.2
r94.9
100.0
r102.0
r105.5

94.8
r97.2
100.0
r99.5
r100.8

95.8
100.4
100.0
97.6
96.2

1995
1996
1997
1998
1999

r115.2
r120.7
r126.3
r135.4
r143.3

122.8
129.5
139.5
150.2
158.5

r106.6
r107.3
r110.5
r111.0
r110.6

r106.5
r108.1
r110.6
r118.2
r123.6

r99.4
r98.2
r98.4
r103.7
r106.2

92.5
89.5
87.6
r87.4
86.2

2000
r150.9
165.7
109.9
r135.5
r112.6
89.8
2001
153.0
155.9
101.9
137.7
r111.4
90.0
2002
r165.6
154.8
r93.5
r145.3
r115.7
r87.7
2003
r178.3
158.0
r88.6
r159.3
r124.0
r89.3
----------------------------------------------------------------------------------------------See footnotes following Table 6.
August 10, 2004
r=revised
Source: Bureau of Labor Statistics

26
Appendix table 11. Nondurable manufacturing sector:
costs,
Indexes 1992=100

Productivity, hourly compensation, and unit labor

Real
Output per
Hours
CompensacompensaUnit
hour of
of all
tion per
tion per
labor
Year
all persons
Output
persons
hour (1)
hour (2)
costs
----------------------------------------------------------------------------------------------1987
90.5
90.2
r99.7
r80.2
r96.7
88.7
1988
r92.0
93.3
r101.5
r84.0
r97.7
91.3
1989
r92.3
94.7
r102.7
r86.7
r96.7
r93.9
1990
1991
1992
1993
1994

r94.8
r97.4
100.0
r100.5
r102.2

96.1
96.6
100.0
101.9
104.5

r101.4
r99.2
100.0
r101.4
r102.3

r91.2
r96.2
100.0
r102.7
r105.7

r96.9
r98.6
100.0
r100.2
r101.0

96.2
98.8
100.0
102.3
103.5

1995
1996
1997
1998
1999

r104.6
r107.1
r110.7
r113.0
r113.9

106.3
106.5
110.0
110.6
110.3

r101.6
r99.5
r99.4
r97.9
r96.9

r108.8
r112.4
r113.6
r118.9
r122.1

r101.5
r102.2
r101.1
r104.3
r104.9

103.9
105.0
102.7
105.2
107.2

2000
r118.5
111.1
r93.8
r131.7
r109.4
111.1
2001
r121.4
107.8
r88.8
r136.9
r110.7
112.8
2002
r127.3
107.1
r84.1
r149.7
r119.2
r117.6
2003
r129.7
104.8
r80.7
r159.6
r124.2
r123.0
----------------------------------------------------------------------------------------------See footnotes following Table 6.
August 10, 2004
r=revised
Source: Bureau of Labor Statistics

27
Appendix table 12. Nonfinancial corporations:
profits, and prices,
Indexes 1992=100

Productivity, hourly compensation, unit labor costs, unit

Output
Hourly
Real
Unit
Total
Unit Implicit
per allcompenhourly
Unit
nonunit
pro- price
employee
Employee sation
compen
labor
labor
costs
fits deflator
Year
hour
Output hours
(1)
sation(2) costs
costs(6) (7)
(8)
(4)
-------------------------------------------------------------------------------------------------------1958
r53.6
25.7
r48.0
r15.0
r67.2
28.0
23.2
26.7
46.5
28.5
1959
r56.1
28.6
r50.9
r15.6
r69.3
27.7
21.9
26.2
55.0
28.7
1960
1961
1962
1963
1964

r57.0
r58.8
r61.3
r63.5
r64.5

29.5
30.1
32.7
34.6
37.0

r51.8
r51.3
r53.3
r54.5
r57.5

r16.2
r16.7
r17.4
r17.9
r18.2

r70.8
r72.4
r74.4
r75.7
r76.2

28.4
28.4
28.3
28.2
28.3

23.0
23.5
23.1
23.1
22.9

26.9
27.1
26.9
26.8
26.8

49.5
49.5
53.7
56.5
58.8

28.9
29.1
29.3
29.5
29.7

1965
1966
1967
1968
1969

r66.0
r67.1
r68.1
r70.5
r70.5

40.1
42.9
44.0
46.8
48.6

r60.7
r63.9
r64.6
r66.4
r69.0

r18.8
r19.8
r20.9
r22.5
r24.0

r77.1
r79.2
r81.1
r83.7
r84.8

28.4
29.5
30.7
31.9
34.1

22.8
23.0
24.3
25.9
28.1

26.9
27.8
29.0
30.3
32.5

63.2
62.7
59.1
59.1
53.3

30.2
30.9
31.7
32.9
34.4

1970
1971
1972
1973
1974

r70.8
r73.8
r75.2
r75.9
r74.3

48.1
50.1
53.8
57.1
56.1

r67.9
r67.9
r71.6
r75.2
r75.5

r25.7
r27.3
r28.8
r31.0
r33.9

r85.9
r87.4
r89.2
r90.4
r89.2

36.3
37.0
38.3
40.8
45.7

31.7
33.1
33.4
35.2
40.5

35.1
36.0
37.0
39.3
44.3

43.7
49.8
53.3
54.1
47.7

35.9
37.2
38.4
40.6
44.6

1975
1976
1977
1978
1979

r77.3
r79.7
r81.8
r82.8
r82.0

55.4
59.8
64.2
68.3
70.4

r71.7
r75.0
r78.4
r82.5
r85.8

r37.3
r40.3
r43.5
r47.6
r51.9

r89.7
r91.8
r93.0
r95.1
r94.9

48.2
50.6
53.2
57.5
63.3

45.9
45.7
47.7
50.5
55.1

47.6
49.3
51.7
55.6
61.1

62.2
70.4
76.2
78.0
73.1

48.9
51.2
53.9
57.6
62.2

1980
1981
1982
1983
1984

r81.3
r82.7
r83.1
r86.2
88.4

69.2
71.4
69.9
73.5
80.3

r85.2
r86.4
84.1
r85.3
r90.8

r57.2
r62.4
66.5
68.9
r71.9

r94.1
r93.9
94.4
94.0
r94.3

70.4
75.5
79.9
80.0
81.3

64.5
73.6
81.3
81.2
80.7

68.8
75.0
80.3
80.3
81.1

66.5
81.2
75.1
90.7
106.7

68.6
75.5
79.8
81.2
83.4

1985
1986
1987
1988
1989

90.5
r92.4
r94.4
96.5
r95.1

84.0
86.1
90.7
95.7
97.2

r92.9
r93.2
96.1
99.1
r102.2

75.2
r78.9
r81.6
84.9
r87.0

r95.4
r98.3
r98.3
98.7
r97.0

83.1
85.4
86.4
87.9
91.4

82.8
85.3
84.9
86.1
92.8

83.0
85.4
86.0
87.4
91.8

101.3
89.2
99.0
110.6
100.6

84.7
85.7
87.2
89.5
92.6

1990
1991
1992
1993
1994

r95.6
r97.8
100.0
r100.6
r102.6

98.1
97.4
100.0
103.0
109.5

r102.5
r99.6
100.0
r102.4
106.8

r91.1
r95.5
100.0
101.7
r103.6

r96.8
r97.9
100.0
r99.3
98.9

95.3
97.6
100.0
101.2
101.0

97.1
102.3
100.0
99.7
100.5

95.8
98.9
100.0
100.8
100.8

96.7
92.8
100.0
113.9
131.3

95.9
98.4
100.0
101.9
103.6

1995
1996
1997
1998
1999

r103.3
r107.2
r109.9
r113.0
r116.6

114.3
120.7
128.4
135.3
143.2

r110.6
r112.6
r116.9
r119.7
r122.8

r105.3
r108.5
111.7
r118.1
r123.5

98.3
r98.6
r99.4
r103.6
r106.1

102.0
101.2
101.7
104.5
106.0

101.3
99.9
99.8
99.9
101.0

101.8
100.9
101.2
103.2
104.6

136.9
149.9
154.4
137.5
129.8

104.9
105.3
105.9
106.3
106.9

2000
r120.8
150.7
r124.7
r132.0
r109.7
109.2
104.8
108.0
109.3
108.1
2001
r123.0
r149.4
r121.5
r137.3
r111.1
r111.7
r113.2
r112.1
r82.6
109.5
2002
r128.4
r151.6
r118.1
r141.5
r112.7
r110.2
r113.0
r111.0
r95.4
109.6
2003
r135.4
r157.7
r116.5
r147.3
r114.6
r108.8
r111.5
r109.5
r113.2
109.8
-------------------------------------------------------------------------------------------------------See footnotes following Table 6.
August 10, 2004
r=revised
Source: Bureau of Labor Statistics