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USDL 21-1929

Transmission of material in this release is embargoed until
8:30 a.m. (ET) Thursday, November 4, 2021
Technical information: (202) 691-5606 • Productivity@bls.gov • www.bls.gov/lpc
Media contact:
(202) 691-5902 • PressOffice@bls.gov

PRODUCTIVITY AND COSTS
Third Quarter 2021, Preliminary
Nonfarm business sector labor productivity decreased 5.0 percent in the third quarter of 2021, the
U.S. Bureau of Labor Statistics reported today, as output increased 1.7 percent and hours worked
increased 7.0 percent. This is the lowest rate of quarterly productivity growth since the second quarter of
1981, when the measure decreased 5.1 percent. (All quarterly percent changes in this release are
seasonally adjusted annual rates.) From the third quarter of 2020 to the third quarter of 2021, nonfarm
business sector labor productivity decreased 0.5 percent. The four-quarter rate is the lowest rate since
the third quarter of 2011, when the measure also declined 0.5 percent (See chart 1 and table A1.)
Chart 1. Labor productivity, nonfarm business, 2017Q1 – 2021Q3
16.0

Percent change

Chart 2. Unit labor costs, nonfarm business, 2017Q1 – 2021Q3
16.0

14.0

14.0

12.0

12.0

10.0

10.0

8.0

8.0

6.0

6.0

4.0

4.0

2.0

2.0

0.0

0.0

-2.0

-2.0

-4.0

-4.0

-6.0

-6.0

-8.0

-8.0

-10.0

-10.0

2017

2018

2019

2020

From previous quarter, annual rate
From same quarter a year ago

2021

Percent change

2017

2018

2019

2020

2021

From previous quarter, annual rate
From same quarter a year ago

Unit labor costs in the nonfarm business sector increased at an annual rate of 8.3 percent in the third
quarter of 2021, reflecting a 2.9-percent increase in hourly compensation and a 5.0-percent decrease in
productivity. Unit labor costs increased 4.8 percent over the last four quarters. (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 third
quarter of 2021 is the fifth consecutive quarter with increases in both output and hours worked,
following historic declines in those measures in the second quarter of 2020. The output index is now 1.8
percent above the level seen in the fourth quarter of 2019, the last quarter not affected by the COVID-19
pandemic, while the hours worked index remains 1.0 percent below its fourth quarter 2019 level. (See
chart 3 and tables A1 and 2.)

Chart 3. Output and Hours Worked index series, nonfarm business, 2019 Q4 – 2021 Q3
104

Index (2019 Q4=100)

102
100
98
96
94
92
90
88
86
84
2019 Q4

2020 Q1

2020 Q2

2020 Q3
Output

2020 Q4

2021 Q1

2021 Q2

2021 Q3

Hours Worked

The nonfarm business labor productivity index is 2.9 percent higher in third-quarter 2021 than it was in
fourth-quarter 2019, corresponding to an average annual growth rate of 1.6 percent during the pandemic
period of fourth quarter 2019 through third quarter 2021. This rate is slightly higher than the 1.4-percent
average annual growth rate during the previous business cycle—from 2007 to 2019—but below the
long-term average rate since 1947 of 2.1 percent.
Manufacturing sector labor productivity decreased 1.0 percent in the third quarter of 2021, as output
increased 5.7 percent and hours worked increased 6.7 percent. In the durable manufacturing sector,
productivity increased 1.4 percent, with a 9.9-percent increase in output and an 8.4-percent increase in
hours worked. Nondurable manufacturing sector productivity decreased 2.6 percent, as output (+1.3
percent) grew slower than hours worked (+4.0 percent). Total manufacturing sector productivity
increased 2.4 percent from the same quarter a year ago. (See tables A1, 3, 4, and 5.)
Manufacturing sector output is now 1.1 percent above its level in the fourth quarter of 2019, the last
quarter not affected by the COVID-19 pandemic. Hours worked in manufacturing remain 3.3 percent
below the fourth-quarter 2019 level. The manufacturing labor productivity index is now 4.6 percent
higher than in fourth-quarter 2019, reflecting growth at a 2.6-percent annual rate during the pandemic
period of fourth quarter 2019 through third quarter 2021. This rate is much higher than the 0.2-percent
average annual growth rate during the previous business cycle—from 2007 to 2019—and is just above
the long-term rate of 2.3 percent per year from 1987 to 2020. (See chart 4 and tables A1 and 3.)
Unit labor costs in the total manufacturing sector increased 2.9 percent in the third quarter of 2021,
reflecting a 1.9-percent increase in hourly compensation and a 1.0-percent decrease in productivity.
Manufacturing unit labor costs increased 1.9 percent from the same quarter a year ago. (See tables A1
and 3.)

-2-

Chart 4. Output and Hours Worked index series, manufacturing, 2019 Q4 – 2021 Q3
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

2021 Q2

2021 Q3

Hours Worked

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 5.)
Revised measures
Revised and previous measures for the second quarter of 2021 are shown in tables A2 and B1, covering
the following major sectors: nonfarm business, business, manufacturing, and nonfinancial corporations.
In the second quarter of 2021, nonfarm business sector productivity was revised up, due primarily to
an upward revision to output, and increased 2.4 percent rather than 2.1 percent as reported September 2.
Unit labor costs increased 1.1 percent, slightly less than previously reported. (See table B1.)
Manufacturing sector productivity rose 8.5 percent in the second quarter; an upward revision of 0.5
percentage point that reflected both a 0.3-percentage point upward revision to output and a 0.2-percentage
point downward revision to hours worked. Durable manufacturing productivity grew 5.7 percent, 1.1
percentage point higher than the previous estimate. Nondurable manufacturing productivity grew 9.8
percent, slightly lower than the prior estimate. Unit labor costs in total manufacturing were revised down
0.5-percentage point and decreased 3.5 percent in the second quarter, reflecting the upward revision to
productivity.
Second-quarter 2021 measures of productivity and costs were revised for the nonfinancial corporate
sector. Productivity decreased 1.8 percent rather than decreasing 4.0 percent as previously reported
due to an upward revision to output; hours worked were not revised. Unit labor costs increased 5.7
percent rather than the preliminary estimate of 8.0 percent. (See table A2.)
Complete annual and quarterly data series can be found on the Productivity and Costs home page:
www.bls.gov/lpc/#data.
______________
The revised Productivity and Costs news release for third-quarter 2021 is scheduled to be released
on Tuesday, December 7, 2021 at 8:30 a.m. (ET).
-3-

Table A1. Labor productivity growth and related measures - preliminary third-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
-5.0
-0.5

Output
1.7
6.1

Hours
worked
7.0
6.7

Hourly
compensation
2.9
4.3

Real hourly
compensation
-3.5
-1.0

Unit labor
costs
8.3
4.8

Business

Previous quarter
A year ago

-4.8
-0.6

1.4
5.9

6.5
6.6

3.3
4.3

-3.1
-0.9

8.5
5.0

Manufacturing

Previous quarter
A year ago

-1.0
2.4

5.7
6.3

6.7
3.8

1.9
4.3

-4.5
-0.9

2.9
1.9

Durable
manufacturing

Previous quarter
A year ago

1.4
3.2

9.9
6.8

8.4
3.5

0.8
4.9

-5.5
-0.3

-0.6
1.7

Nondurable
manufacturing

Previous quarter
A year ago

-2.6
1.3

1.3
5.8

4.0
4.4

3.5
3.3

-2.9
-1.9

6.2
2.0

Table A2. Labor productivity growth and related measures - revised and previously published second-quarter 2021
(percent change from previous quarter at annual rate)

Sector
Nonfinancial
corporate

Revised
Previously published

Labor
productivity
-1.8
-4.0

Output
2.9
0.7

Hours
worked
4.9
4.9

Hourly
compensation
3.8
3.7

Real hourly
compensation
-4.3
-4.4

Unit labor
costs
5.7
8.0

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

Sector
Nonfarm business

Labor
productivity
Revised
2.4
Previously published
2.1

Output
8.5
8.1

Hours
worked
5.9
6.0

Hourly
compensation
3.5
3.4

Real hourly
compensation
-4.6
-4.6

Unit labor
costs
1.1
1.3

Business

Revised
Previously published

2.6
2.4

8.2
7.9

5.4
5.4

3.9
3.9

-4.2
-4.2

1.3
1.4

Manufacturing

Revised
Previously published

8.5
8.0

5.8
5.5

-2.5
-2.3

4.7
4.7

-3.5
-3.4

-3.5
-3.0

Durable
manufacturing

Revised
Previously published

5.7
4.6

-0.1
-0.9

-5.4
-5.2

5.2
5.3

-3.0
-2.9

-0.4
0.7

Nondurable
manufacturing

Revised
Previously published

9.8
10.0

12.6
12.9

2.6
2.7

4.5
4.5

-3.6
-3.6

-4.8
-5.0

-4-

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 75 percent of the value of GDP in 2020. Nonfarm
business, which excludes farming, accounted for about 74 percent of GDP in 2020.
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 49 percent of the value of GDP in 2020.

-5-

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.

-6-

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 III
II
I
2020 ANNUAL
2020 IV
III
II
I
2019 ANNUAL

-4.8
2.6 r
4.2

1.4
8.2 r
8.2

6.5
5.4
3.8

3.3
3.9
1.5

-3.1
-4.2
-2.1

8.5
1.3 r
-2.6

2.9
16.3 r
17.3

6.1
7.3
5.1

2.4

-4.2

-6.5

6.8

5.5

4.3

-4.8

0.4

-4.2
5.9
10.2
-1.1

6.1
44.7
-36.8
-6.8

10.8
36.7
-42.7
-5.8

8.6
-4.7
21.9
9.2

6.0
-9.0
25.8
8.1

13.4
-10.0
10.6
10.5

-13.3
31.7
-23.2
-12.6

1.6
5.1
-4.6
0.0

1.9

2.6

0.7

3.8

2.0

1.8

1.1

1.5

2019 IV
0.5
1.8
1.3
3.9
1.3
3.4
-1.2
1.4
III
0.6
3.1
2.5
0.1
-1.2
-0.4
2.5
0.8
II
4.3
3.5
-0.7
1.4
-2.0
-2.7
10.3
2.7
I
3.2
3.1
-0.2
9.4
8.6
5.9
-5.9
0.7
--------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year
2021 III
II
I

-0.6
2.0
3.9

5.9
15.8 r
1.2

6.6
13.5
-2.6

4.3
2.2
6.4

-0.9
-2.5
4.4

5.0
0.2
2.4

5.0
11.7
0.7

5.0
4.7
1.7

2020 ANNUAL

2.4

-4.2

-6.5

6.8

5.5

4.3

-4.8

0.4

2020 IV
III
II
I

2.5
3.8
2.5
1.1

-2.5
-3.5
-11.3
0.3

-4.9
-7.0
-13.5
-0.7

8.3
7.2
8.5
3.6

7.0
5.8
8.0
1.5

5.7
3.3
5.9
2.5

-6.4
-3.3
-9.2
-0.6

0.5
0.4
-0.6
1.2

2019 ANNUAL

1.9

2.6

0.7

3.8

2.0

1.8

1.1

1.5

2019 IV
2.1
2.9
0.7
3.7
1.6
1.5
1.3
1.4
III
2.0
2.7
0.6
3.1
1.3
1.0
2.0
1.5
II
2.0
2.4
0.4
4.2
2.4
2.2
0.5
1.5
I
1.5
2.5
1.0
4.2
2.6
2.7
0.4
1.7
--------------------------------------------------------------------------------------------------Indexes 2012=100
2021 III
II
I

111.6
113.0 r
112.3

124.5
124.1 r
121.6

111.5
109.8 r
108.3

134.5
133.5 r
132.2

112.9
113.8 r
115.0

120.5
118.1 r
117.7

111.0
110.2 r
106.2

116.4
114.6 r
112.6

2020 ANNUAL

110.5

116.0

105.0

128.8

114.0

116.5

103.0

110.6

2020 IV
III
II
I

111.1
112.3
110.7
108.1

119.3
117.5
107.2
120.2

107.3
104.6
96.8
111.2

131.7
129.0
130.6
124.2

115.6
113.9
116.7
110.1

118.5
114.8
117.9
115.0

102.0
105.7
98.7
105.4

111.3
110.8
109.5
110.8

2019 ANNUAL

107.9

121.2

112.3

120.5

108.0

111.7

108.3

110.2

2019 IV
108.4
122.3
112.9
121.5
108.0
112.1
109.0
110.8
III
108.2
121.8
112.5
120.4
107.7
111.2
109.3
110.4
II
108.1
120.8
111.8
120.3
108.0
111.3
108.6
110.2
I
106.9
119.8
112.0
119.9
108.5
112.1
106.0
109.4
--------------------------------------------------------------------------------------------------See footnotes following Table 6.
November 4, 2021
r=revised
Source: Bureau of Labor Statistics

-7-

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 III
II
I
2020 ANNUAL
2020 IV
III
II
I
2019 ANNUAL

-5.0
2.4 r
4.3

1.7
8.5 r
8.4

7.0
5.9 r
4.0

2.9
3.5 r
1.4

-3.5
-4.6
-2.2

8.3
1.1 r
-2.8

2.6
13.8 r
16.6

5.9
6.1 r
4.6

2.4

-4.4

-6.6

7.0

5.6

4.5

-4.9

0.4

-3.4
4.6
11.2
-1.8

6.2
44.6
-36.9
-7.4

9.9
38.2
-43.2
-5.7

9.4
-5.7
22.7
9.3

6.8
-10.0
26.6
8.2

13.3
-9.9
10.3
11.3

-14.8
30.5
-21.7
-13.2

0.9
4.7
-3.9
0.2

2.0

2.7

0.7

3.8

2.0

1.8

1.2

1.5

2019 IV
0.6
1.8
1.2
4.1
1.5
3.5
-1.5
1.3
III
0.8
3.2
2.4
0.2
-1.1
-0.5
2.4
0.7
II
4.3
3.6
-0.7
1.4
-2.0
-2.8
10.6
2.7
I
3.4
3.4
0.0
9.2
8.4
5.6
-5.5
0.7
--------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year
2021 III
II
I

-0.5
1.9 r
4.1

6.1
15.9 r
1.3

6.7
13.7
-2.7

4.3
2.0
6.4

-1.0
-2.7
4.5

4.8
0.1 r
2.3

3.8
10.2 r
0.4

4.4
4.1
1.5

2020 ANNUAL

2.4

-4.4

-6.6

7.0

5.6

4.5

-4.9

0.4

2020 IV
III
II
I

2.5
3.6
2.6
1.0

-2.7
-3.7
-11.5
0.2

-5.0
-7.0
-13.7
-0.8

8.5
7.1
8.8
3.7

7.2
5.8
8.3
1.6

5.8
3.4
6.0
2.7

-6.8
-3.3
-9.0
-0.8

0.4
0.5
-0.4
1.2

2019 ANNUAL

2.0

2.7

0.7

3.8

2.0

1.8

1.2

1.5

2019 IV
2.3
3.0
0.7
3.7
1.6
1.4
1.4
1.4
III
2.1
2.8
0.6
3.1
1.3
0.9
2.1
1.4
II
2.2
2.6
0.3
4.3
2.4
2.1
0.8
1.5
I
1.6
2.6
1.1
4.3
2.6
2.7
0.6
1.8
--------------------------------------------------------------------------------------------------Indexes 2012=100
2021 III
II
I

111.3
112.8 r
112.1

124.4
123.9 r
121.4

111.7
109.9 r
108.3

134.6
133.7 r
132.5

112.9
114.0 r
115.3

120.9
118.5 r
118.2

110.6
110.0 r
106.5

116.4
114.8 r
113.1

2020 ANNUAL

110.2

115.7

105.0

129.1

114.3

117.1

103.8

111.3

2020 IV
III
II
I

110.9
111.9
110.6
107.7

118.9
117.2
106.9
119.9

107.2
104.7
96.6
111.3

132.1
129.1
131.0
124.5

116.0
114.1
117.1
110.4

119.1
115.4
118.4
115.6

102.5
106.6
99.8
106.1

111.8
111.6
110.3
111.4

2019 ANNUAL

107.7

121.0

112.4

120.7

108.2

112.1

109.2

110.8

2019 IV
108.2
122.2
112.9
121.8
108.2
112.5
109.9
111.4
III
108.1
121.6
112.6
120.5
107.8
111.6
110.3
111.0
II
107.8
120.7
111.9
120.5
108.1
111.7
109.7
110.8
I
106.7
119.6
112.1
120.1
108.7
112.5
106.9
110.1
--------------------------------------------------------------------------------------------------See footnotes following Table 6.
November 4, 2021
r=revised
Source: Bureau of Labor Statistics

-8-

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 III
II
I
2020 ANNUAL
2020 IV
III
II
I
2019 ANNUAL

-1.0
8.5 r
-0.8 r

5.7
5.8 r
2.9

6.7
-2.5 r
3.8

1.9
4.7
0.6

-4.5
-3.5 r
-3.1

2.9
-3.5 r
1.4 r

0.3

-6.4

-6.6

6.8

5.4

6.5

3.1
19.4
-10.3
1.8

11.0
56.2
-44.5
-5.5

7.6
30.8
-38.1
-7.2

10.5
-12.0
27.2
7.8

7.9
-16.0
31.3
6.7

7.2
-26.3
41.9
6.0

-1.4

-1.7

-0.2

2.8

1.0

4.3

2019 IV
-1.6
-1.5
0.1
6.7
4.0
8.5
III
-1.3
-0.2
1.1
-1.1
-2.4
0.2
II
-2.0
-3.3
-1.4
1.7
-1.7
3.8
I
-1.1
-4.2
-3.1
6.2
5.4
7.4
--------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year
2021 III
II
I

2.4
7.3 r
2.3

6.3
17.2 r
-0.2 r

3.8
9.2 r
-2.5

4.3
0.6
5.6

-0.9
-4.0
3.7

1.9
-6.2 r
3.2 r

2020 ANNUAL

0.3

-6.4

-6.6

6.8

5.4

6.5

2020 IV
III
II
I

3.0
1.7
-3.0
-0.8

-2.4
-5.2
-15.3
-2.7

-5.2
-6.8
-12.7
-1.9

7.5
6.5
9.7
3.7

6.2
5.2
9.2
1.6

4.4
4.7
13.1
4.6

2019 ANNUAL

-1.4

-1.7

-0.2

2.8

1.0

4.3

2019 IV
-1.5
-2.3
-0.8
3.3
1.3
4.9
III
-1.8
-2.5
-0.7
2.3
0.5
4.2
II
-1.7
-1.8
-0.1
3.5
1.6
5.4
I
-0.7
-0.1
0.6
2.1
0.5
2.9
--------------------------------------------------------------------------------------------------Indexes 2012=100
2021 III
II
I

99.8
100.0 r
98.0 r

102.5
101.1 r
99.7 r

102.7
101.1 r
101.7

127.7
127.2 r
125.7

107.2
108.4 r
109.4

128.1
127.2 r
128.3 r

2020 ANNUAL

96.2

95.4

99.2

123.2

109.1

128.1

2020 IV
III
II
I

98.2
97.4
93.2
95.8

99.0
96.4
86.2
99.9

100.8
99.0
92.5
104.3

125.5
122.4
126.4
119.0

110.2
108.1
113.0
105.5

127.8
125.6
135.6
124.3

2019 ANNUAL

95.9

101.9

106.2

115.4

103.5

120.3

2019 IV
95.4
101.3
106.3
116.8
103.8
122.5
III
95.8
101.7
106.2
114.9
102.8
120.0
II
96.1
101.8
105.9
115.2
103.4
119.9
I
96.6
102.7
106.3
114.7
103.9
118.8
--------------------------------------------------------------------------------------------------See footnotes following Table 6.
November 4, 2021
r=revised
Source: Bureau of Labor Statistics

-9-

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 III
II
I
2020 ANNUAL
2020 IV
III
II
I
2019 ANNUAL

1.4
5.7 r
1.1 r

9.9
-0.1 r
6.7 r

8.4
-5.4 r
5.5

0.8
5.2 r
1.8

-5.5
-3.0 r
-1.9

-0.6
-0.4 r
0.7

-0.2

-8.1

-8.0

6.8

5.5

7.0

4.8
44.6
-20.3
-2.6

11.0
97.9
-54.4
-10.0

6.0
36.9
-42.8
-7.6

12.3
-16.1
29.7
6.9

9.6
-19.9
33.9
5.8

7.2
-42.0
62.7
9.7

-1.7

-1.8

0.0

2.3

0.4

4.1

2019 IV
-1.0
-2.0
-1.1
10.2
7.4
11.3
III
-1.0
-0.2
0.8
-2.4
-3.6
-1.4
II
-1.0
-3.3
-2.4
0.9
-2.4
1.9
I
-2.9
-5.7
-2.9
5.8
5.0
8.9
--------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year
2021 III
II
I

3.2
12.8 r
5.1

6.8
23.7 r
1.7 r

3.5
9.7
-3.3

4.9
0.2
5.6

-0.3
-4.4
3.6

1.7
-11.1 r
0.5

2020 ANNUAL

-0.2

-8.1

-8.0

6.8

5.5

7.0

2020 IV
III
II
I

4.1
2.7
-6.6
-1.4

-2.6
-5.6
-20.4
-4.0

-6.4
-8.0
-14.8
-2.6

6.9
6.4
10.5
3.8

5.6
5.1
10.1
1.7

2.6
3.6
18.3
5.3

2019 ANNUAL

-1.7

-1.8

0.0

2.3

0.4

4.1

2019 IV
-1.5
-2.9
-1.4
3.5
1.5
5.1
III
-2.0
-2.4
-0.4
1.3
-0.5
3.4
II
-2.0
-1.7
0.3
2.6
0.8
4.7
I
-1.5
-0.1
1.4
1.6
0.0
3.1
--------------------------------------------------------------------------------------------------Indexes 2012=100
2021 III
II
I
2020 ANNUAL
2020 IV
III
II
I
2019 ANNUAL

102.2
101.9 r
100.5 r

103.5
101.1 r
101.1 r

101.2
99.2 r
100.6

128.4
128.1 r
126.5

107.7
109.3 r
110.1

125.6
125.8 r
125.9 r

96.4

94.4

97.9

123.8

109.6

128.5

100.2
99.0
90.3
95.6

99.5
96.9
81.7
99.4

99.3
97.8
90.5
104.0

126.0
122.4
127.9
119.8

110.6
108.1
114.3
106.2

125.7
123.5
141.6
125.3

96.6

102.7

106.4

116.0

104.0

120.1

2019 IV
96.2
102.1
106.1
117.8
104.7
122.5
III
96.4
102.6
106.4
115.0
102.9
119.2
II
96.7
102.7
106.2
115.7
103.8
119.6
I
96.9
103.5
106.8
115.4
104.5
119.1
--------------------------------------------------------------------------------------------------See footnotes following Table 6.
November 4, 2021
r=revised
Source: Bureau of Labor Statistics

-10-

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 III
II
I

-2.6
9.8 r
-2.1 r

1.3
12.6 r
-1.1 r

2020 ANNUAL

-0.1

-4.4

2020 IV
III
II
I

0.5
-0.1
-3.3
6.6

2019 ANNUAL

-1.0

4.0
2.6 r
1.0

3.5
4.5
-2.1

-2.9
-3.6
-5.6

6.2
-4.8 r
0.0 r

-4.3

7.1

5.8

7.2

10.9
21.4
-31.7
-0.3

10.3
21.5
-29.4
-6.4

7.6
-4.8
25.2
9.8

5.1
-9.1
29.3
8.7

7.1
-4.8
29.5
3.1

-1.6

-0.6

3.9

2.0

4.9

2019 IV
-3.1
-0.9
2.3
0.5
-2.0
3.7
III
-1.7
-0.2
1.5
1.4
0.1
3.2
II
-3.8
-3.3
0.5
3.6
0.1
7.6
I
1.0
-2.5
-3.5
6.9
6.1
5.8
--------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year
2021 III
II
I

1.3
1.9 r
-1.3

5.8
10.7
-2.4

4.4
8.6
-1.1

3.3
1.2
5.9

-1.9
-3.5
3.9

2.0
-0.7 r
7.2

2020 ANNUAL

-0.1

-4.4

-4.3

7.1

5.8

7.2

2020 IV
III
II
I

0.9
-0.1
-0.5
-0.6

-2.2
-4.9
-9.4
-1.2

-3.0
-4.8
-9.0
-0.6

9.0
7.1
8.8
3.8

7.6
5.8
8.3
1.6

8.0
7.2
9.3
4.4

2019 ANNUAL

-1.0

-1.6

-0.6

3.9

2.0

4.9

2019 IV
-1.9
-1.8
0.2
3.1
1.0
5.1
III
-1.4
-2.5
-1.1
4.3
2.5
5.8
II
-1.3
-1.9
-0.7
5.2
3.3
6.6
I
0.6
-0.1
-0.7
3.0
1.3
2.4
--------------------------------------------------------------------------------------------------Indexes 2012=100
2021 III
II
I

97.5
98.1 r
95.9 r

2020 ANNUAL

96.5

2020 IV
III
II
I
2019 ANNUAL

102.6
102.3 r
99.3 r

105.3
104.3 r
103.6

127.0
125.9 r
124.5

106.5
107.3 r
108.3

130.2
128.3 r
129.9 r

97.7

101.3

122.4

108.4

126.9

96.4
96.2
96.3
97.1

99.6
97.0
92.5
101.7

103.3
100.8
96.0
104.8

125.1
122.9
124.4
117.6

109.9
108.5
111.2
104.2

129.8
127.7
129.2
121.1

96.5

102.2

105.9

114.3

102.5

118.4

2019 IV
95.5
101.8
106.5
114.9
102.1
120.2
III
96.3
102.0
105.9
114.7
102.6
119.1
II
96.7
102.1
105.5
114.3
102.6
118.2
I
97.7
102.9
105.4
113.3
102.6
116.0
--------------------------------------------------------------------------------------------------See footnotes following Table 6.
November 4, 2021
r=revised
Source: Bureau of Labor Statistics

-11-

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 II
I
2020 ANNUAL
2020 IV
III
II
I
2019 ANNUAL

-1.8 r
5.0

2.9 r
8.9

4.9
3.7

3.8 r
0.0

-4.3 r
-3.6

5.7 r
-4.8

-12.1 r
18.7

0.1 r
1.6

63.1 r
30.0

7.9 r
5.1

2.2

-4.2

-6.3

6.9

5.6

4.6

-10.6

-0.2

2.4

0.1

16.3
-0.8
3.8
1.1

28.4
31.7
-39.0
-3.3

10.3
32.8
-41.2
-4.3

7.7
-5.7
25.0
7.8

5.2
-9.9
29.1
6.7

-7.4
-4.9
20.5
6.6

53.3
-21.4
-49.3
4.2

6.3
-9.6
-6.5
5.8

-31.4
206.1
-9.1
-35.4

-0.2
6.2
-6.8
-0.4

1.4

2.3

0.9

3.9

2.1

2.5

1.9

2.3

-1.2

1.9

2019 IV
1.1
2.2
1.1
3.6
1.0
2.6
-2.7
0.8
8.8
1.8
III
0.5
1.1
0.6
1.0
-0.4
0.5
5.3
2.0
2.6
2.1
II
1.3
1.6
0.3
2.3
-1.2
1.0
1.7
1.2
13.3
2.6
I
2.7
3.4
0.7
8.0
7.2
5.2
3.2
4.6
-31.2
-1.0
--------------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year
2021 II
I

4.4 r
5.9

17.3 r
3.0

12.4
-2.8

1.3
6.2

-3.3
4.2

-3.0 r
0.2

5.9 r
-7.7

-0.6 r
-2.3

45.2 r
25.5

4.7
1.0

2020 ANNUAL

2.2

-4.2

-6.3

6.9

5.6

4.6

-10.6

-0.2

2.4

0.1

2020 IV
III
II
I

4.9
1.3
1.6
1.0

-0.1
-5.6
-11.6
0.4

-4.7
-6.8
-13.0
-0.6

8.2
7.1
9.0
3.6

6.9
5.8
8.5
1.5

3.1
5.8
7.3
2.6

-10.7
-20.3
-14.2
2.1

-1.2
-2.5
0.4
2.4

5.4
18.3
-10.0
-4.9

-0.4
0.1
-0.9
1.5

2019 ANNUAL

1.4

2.3

0.9

3.9

2.1

2.5

1.9

2.3

-1.2

1.9

2019 IV
1.4
2.1
0.7
3.7
1.6
2.3
1.8
2.1
-3.4
1.4
III
1.1
1.7
0.7
3.5
1.7
2.4
3.2
2.6
-2.4
2.0
II
2.2
3.0
0.8
4.5
2.6
2.2
1.1
1.9
0.8
1.7
I
0.9
2.3
1.4
4.1
2.5
3.2
1.4
2.6
0.6
2.3
--------------------------------------------------------------------------------------------------------Indexes 2012=100
2021 II
I

110.7 r
111.3

122.9 r
122.0

111.0 r
109.6

132.8 r
131.6

113.3 r
114.5

120.0 r
118.3

2020 ANNUAL

106.7

113.7

106.5

128.9

114.1

120.8

2020 IV
III
II
I

109.9
105.8
106.1
105.1

119.4
112.2
104.7
118.5

108.6
106.0
98.7
112.8

131.6
129.2
131.1
124.0

115.6
114.1
117.2
109.9

2019 ANNUAL

104.4

118.7

113.7

120.6

108.1

97.5 r
100.7

112.5 r
112.4

128.7 r
113.8

114.8 r
112.6

96.3

112.6

100.9

111.0

119.8
122.1
123.6
118.0

96.5
86.7
92.1
109.1

112.0
110.3
113.1
115.0

106.6
117.2
88.6
90.7

111.2
111.3
109.6
111.6

115.5

107.7

112.9

98.5

110.8

2019 IV
104.8
119.5
114.0
121.7
108.1
116.1
108.0
113.4
101.2
111.7
III
104.5
118.8
113.7
120.6
107.9
115.4
108.7
113.2
99.1
111.2
II
104.4
118.5
113.5
120.3
108.0
115.3
107.3
112.6
98.4
110.6
I
104.0
118.0
113.4
119.6
108.3
115.0
106.9
112.3
95.4
109.9
--------------------------------------------------------------------------------------------------------See footnotes following Table 6.
November 4, 2021
r=revised
Source: Bureau of Labor Statistics

-12-

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 -1.1 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 second quarter of 2021. 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.

-13-