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

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PRODUCTIVITY AND COSTS
Third Quarter 2021, Revised
Nonfarm business sector labor productivity decreased 5.2 percent in the third quarter of 2021, the
U.S. Bureau of Labor Statistics reported today, as output increased 1.8 percent and hours worked
increased 7.4 percent. This is the largest decline in quarterly productivity since the second quarter of
1960, when the measure decreased 6.1 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 0.6 percent. This four-quarter rate is the largest decline
since the fourth quarter of 1993, when the measure also declined 0.6 percent. (See chart 1 and table A1.)

Unit labor costs in the nonfarm business sector increased at an annual rate of 9.6 percent in the third
quarter of 2021, reflecting a 3.9-percent increase in hourly compensation and a 5.2-percent decrease in
productivity. Unit labor costs increased 6.3 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. In the third
quarter of 2021, both output and hours worked increased for the fifth consecutive quarter 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.)

The nonfarm business labor productivity index is 2.8 percent higher in third-quarter 2021 than it was in
fourth-quarter 2019, corresponding to an annualized 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 1.8 percent in the third quarter of 2021, as output
increased 5.1 percent and hours worked increased 7.0 percent. In the durable manufacturing sector,
productivity increased 0.7 percent, with a 9.7-percent increase in output and an 8.9-percent increase in
hours worked. Nondurable manufacturing sector productivity decreased 3.6 percent, as 0.3-percent
growth in output was outpaced by 4.0-percent growth in hours worked. Total manufacturing sector
productivity increased 2.2 percent from the same quarter a year ago. (See tables A1, 3, 4, and 5.)
Manufacturing sector output is now 1.0 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 3.2 percent
below the fourth-quarter 2019 level. The manufacturing labor productivity index was 4.4 percent higher
in third-quarter 2021 than in fourth-quarter 2019, corresponding to an annualized labor productivity
growth rate of 2.5 percent during that period. 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 longterm 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 4.6 percent in the third quarter of 2021,
reflecting a 2.7-percent increase in hourly compensation and a 1.8-percent decrease in productivity.
Manufacturing unit labor costs increased 3.7 percent from the same quarter a year ago. (See tables A1
and 3.)

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The concepts, sources, and methods used for the manufacturing output series differ from those used in
the business and nonfarm business output series; these output measures are not directly comparable. See
the Technical Notes for a more detailed explanation. (See page 7.)
Preliminary third-quarter 2021 measures were announced today for the nonfinancial corporate sector.
(See table A2.) Productivity increased 0.7 percent in the third quarter of 2021 as output and hours
worked increased 6.8 percent and 6.1 percent, respectively. As in the larger nonfarm business sector,
both output and hours worked in the nonfinancial corporate sector have increased in each of the last five
quarters. Output is now 5.2 percent above the fourth quarter 2019 level, while hours worked remain 1.2
percent lower than in fourth-quarter 2019, the last quarter not affected by the COVID-19 pandemic.
Productivity increased 5.5 percent in the nonfinancial corporate sector over the last four quarters. Unit
profits of nonfinancial corporations increased at an 8.3 percent annual rate in the third quarter of 2021
and increased 11.3 percent over the last four quarters. (See table 6.)
Revised measures
Measures released today are based on more recent source data than were available for the preliminary
report. Regular updates of source data from the BLS, the Bureau of Economic Analysis (BEA), and the
Board of Governors of the Federal Reserve System are reflected in data for the second and third quarters
of 2021. Revisions to source data on compensation from BEA, reflecting their incorporation of data
from the BLS Quarterly Census of Employment and Wages, resulted in revisions to measures of hourly
compensation and unit labor costs in the second quarter of 2021 in all sectors. Measures of output for the
manufacturing sectors incorporate revised annual benchmark data from 1987 to 2019 released
November 18 by BLS. This revision primarily affected measures in 2018 and 2019; revisions to percent
changes prior to 2018 did not exceed 0.1 percentage point.
Table B1 presents revised and previously published productivity and related measures for the nonfarm
business, business, and manufacturing sectors for the third quarter of 2021.
In the third quarter of 2021, nonfarm business labor productivity decreased 5.2 percent rather than the
preliminary estimate of a 5.0-percent decrease, reflecting a 0.1-percentage point upward revision to
-3-

output and a 0.4-percentage point upward revision to hours worked. Unit labor costs were revised up 1.3
percentage points due primarily to a 1.0-percentage point upward revision to hourly compensation.
In the manufacturing sector, productivity decreased 1.8 percent rather than 1.0 percent as previously
reported, reflecting a 0.6-percentage point downward revision to output and a 0.3-percentage point
upward revision to hours worked. Durable manufacturing productivity increased 0.7 percent rather than
increasing 1.4 percent as previously reported, reflecting a 0.2-percentage point downward revision to
output and a 0.5-percentage point upward revision to hours worked. Nondurable manufacturing
productivity was revised down to a decrease of 3.6 percent rather than a decrease of 2.6 percent as
previously reported, due to a 1.0-percentage point downward revision to output; hours worked were
unrevised. Total manufacturing unit labor costs were revised up 1.7 percentage points to an increase of
4.6 percent, the combined effect of a 0.8-percentage point upward revision to hourly compensation and a
0.8-percentage point downward revision to productivity.
Table B2 shows revised and previously published productivity and related measures for the nonfarm
business, business, manufacturing, and nonfinancial corporate sectors for the second quarter of 2021.
In the second quarter of 2021, labor productivity, output, and hours worked were unrevised for the
nonfarm business sector. Unit labor costs increased 5.9 percent, rather than increasing 1.1 percent as
previously reported, due to a 4.9-percentage point upward revision to hourly compensation.
In the manufacturing sector, productivity was revised down 0.1 percentage point to an increase of 8.4
percent. Unit labor costs were revised up to an increase of 1.7 percent rather than the previously reported
decrease of 3.5 percent. This large revision is mainly due to a 5.5-percentage point upward revision to
hourly compensation.
In the nonfinancial corporate sector, productivity increased 0.8 percent rather than decreasing 1.8
percent as previously reported, due solely to a 2.8-percentage point upward revision to output; hours
worked were unrevised. Unit labor costs were revised up 1.9 percentage points to an increase of 7.6
percent, reflecting a 4.7-percentage point upward revision to hourly compensation that was partially
offset by a 2.6-percentage point upward revision to labor productivity.
Complete annual and quarterly data series can be found on the Productivity and Costs home page:
www.bls.gov/lpc/#data.
______________
The preliminary Productivity and Costs news release for fourth-quarter and annual averages 2021
is scheduled to be released on Thursday, February 3, 2022 at 8:30 a.m. (ET).

Calendar year 2022 release dates for Productivity and Costs news releases are now available at
www.bls.gov/schedule/news_release/prod2.htm.

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Table A1. Labor productivity growth and related measures - revised 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
-5.2
-0.6

Output
1.8
6.2

Hours
worked
7.4
6.8

Hourly
compensation
3.9
5.8

Real hourly
compensation
-2.5
0.4

Unit labor
costs
9.6
6.3

Business

Previous quarter
A year ago

-5.0
-0.7

1.5
6.0

6.9
6.7

4.4
5.8

-2.1
0.5

9.9
6.5

Manufacturing

Previous quarter
A year ago

-1.8
2.2

5.1
6.1

7.0
3.9

2.7
5.9

-3.7
0.6

4.6
3.7

Durable
manufacturing

Previous quarter
A year ago

0.7
3.0

9.7
6.7

8.9
3.6

1.7
7.1

-4.6
1.7

1.0
4.0

Nondurable
manufacturing

Previous quarter
A year ago

-3.6
1.0

0.3
5.5

4.0
4.4

4.1
3.8

-2.3
-1.4

8.0
2.7

Table A2. 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
Nonfinancial
corporate

Percent change from:
Previous quarter
A year ago

Labor
productivity
0.7
5.5

Output
6.8
12.1

Hours
worked
6.1
6.2

Hourly
compensation
5.4
5.3

Real hourly
compensation
-1.2
0.1

Unit labor
costs
4.7
-0.2

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

Sector
Nonfarm business

Labor
productivity
Revised
-5.2
Previously published
-5.0

Output
1.8
1.7

Hours
worked
7.4
7.0

Hourly
compensation
3.9
2.9

Real hourly
compensation
-2.5
-3.5

Unit labor
costs
9.6
8.3

Business

Revised
Previously published

-5.0
-4.8

1.5
1.4

6.9
6.5

4.4
3.3

-2.1
-3.1

9.9
8.5

Manufacturing

Revised
Previously published

-1.8
-1.0

5.1
5.7

7.0
6.7

2.7
1.9

-3.7
-4.5

4.6
2.9

Durable
manufacturing

Revised
Previously published

0.7
1.4

9.7
9.9

8.9
8.4

1.7
0.8

-4.6
-5.5

1.0
-0.6

Nondurable
manufacturing

Revised
Previously published

-3.6
-2.6

0.3
1.3

4.0
4.0

4.1
3.5

-2.3
-2.9

8.0
6.2

-5-

Table B2. 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
2.4

Output
8.5
8.5

Hours
worked
5.9
5.9

Hourly
compensation
8.4
3.5

Real hourly
compensation
0.0
-4.6

Unit labor
costs
5.9
1.1

Business

Revised
Previously published

2.6
2.6

8.2
8.2

5.4
5.4

8.9
3.9

0.4
-4.2

6.1
1.3

Manufacturing

Revised
Previously published

8.4
8.5

5.8
5.8

-2.5
-2.5

10.2
4.7

1.7
-3.5

1.7
-3.5

Durable
manufacturing

Revised
Previously published

5.6
5.7

-0.1
-0.1

-5.4
-5.4

13.1
5.2

4.3
-3.0

7.1
-0.4

Nondurable
manufacturing

Revised
Previously published

9.8
9.8

12.7
12.6

2.6
2.6

5.8
4.5

-2.4
-3.6

-3.7
-4.8

Revised
Previously published

0.8
-1.8

5.7
2.9

4.9
4.9

8.5
3.8

0.0
-4.3

7.6
5.7

Nonfinancial
corporate

-6-

TECHNICAL NOTES
Labor Hours
Hours worked data for the labor productivity and cost measures include hours worked for all persons
working in the sector—wage and salary workers, the self-employed and unpaid family workers. The
primary source of hours and employment data is the BLS Current Employment Statistics (CES)
program, which provides monthly survey data on the number of jobs held by wage and salary workers in
nonfarm establishments, counting a person who is employed by two or more establishments at each
place of employment. The CES also provides average weekly paid hours of production and
nonsupervisory workers in these establishments. Weekly paid hours are adjusted to hours worked using
data from the National Compensation Survey (NCS) for 1996 forward and data from the BLS Hours at
Work survey, conducted for this purpose, prior to 1990. Between 1990 and 1995, weekly paid hours are
adjusted to hours at work using a combination of NCS and Hours at Work survey data. The Office of
Productivity and Technology estimates average weekly hours at work for nonproduction and supervisory
workers using information from the Current Population Survey (CPS), the CES, and the NCS.
Data from the CPS are used to estimate hours worked for farm labor, nonfarm proprietors, and nonfarm
unpaid family workers. Using CPS information on employment and hours worked at primary jobs and
all other jobs, separately, the BLS productivity measures assign all hours worked to the appropriate
industrial sector. Hours for government enterprises are derived from the CPS, the CES, and the National
Income and Product Accounts (NIPA) prepared by the Bureau of Economic Analysis (BEA) of the
Department of Commerce.
Detailed hours data are presented in the table “Hours Worked in Total U.S. Economy and Subsectors”
on the BLS website (www.bls.gov/lpc/special_requests/us_total_hrs_emp.xlsx).
Output
Business sector output is a chain-type, current-weighted index constructed after excluding from gross
domestic product (GDP) the following outputs: general government, nonprofit institutions, and private
households (including owner-occupied housing). Corresponding exclusions also are made in labor hours
worked. Business output accounted for about 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.

-7-

Labor Productivity
The measure describes the relationship between real output and the labor time involved in its production.
Measures of labor productivity growth show the changes from period to period in the amount of goods
and services produced per hour worked. They reflect the joint effects of many influences, including
changes in technology; capital investment; level of output; utilization of capacity, energy, and materials;
the organization of production; managerial skill; and the characteristics and effort of the work force.
Labor Compensation
The measure includes accrued wages and salaries, supplements, employer contributions to employee
benefit plans, and taxes. Estimates of labor compensation by major sector, required for measures of
hourly compensation and unit labor costs, are based primarily on employee compensation data from the
NIPA, prepared by the BEA. The compensation of employees in general government, nonprofit
institutions and private households are subtracted from compensation of employees in domestic
industries to derive employee compensation for the business sector. The labor compensation of
proprietors cannot be explicitly identified and must be estimated. This is done by assuming that
proprietors have the same hourly compensation as employees in the same sector. The quarterly labor
productivity and cost measures do not contain estimates of compensation for unpaid family workers.
Unit Labor Costs
These measures describe the relationship between compensation per hour and labor productivity, or real
output per hour, and can be used as an indicator of inflationary pressure on producers. Increases in
hourly compensation increase unit labor costs; labor productivity increases offset compensation
increases and lower unit labor costs.
Presentation of the data
The quarterly data in this release are presented in three ways: as percent changes from the previous
quarter presented at a compound annual rate, as percent changes from the corresponding quarter of the
previous year, and as index number series where 2012=100. Annual data are presented both as index
number series and percent changes from the previous year.
The index numbers and rates of change reported in the productivity and costs news release are rounded
to one decimal place. All percent changes in this release and on the BLS web site are calculated using
index numbers to three decimal places. A complete historical series of these index numbers are available
at the BLS web site, www.bls.gov/data/home.htm, or by contacting the BLS Division of Major Sector
Productivity (Telephone 202-691-5606 or email productivity@bls.gov).
For a more detailed explanation of methodology see "Technical Information About the Major Sector
Productivity and Costs Methods" at www.bls.gov/lpc/lpcmethods.pdf.
Information in this release will be made available to sensory-impaired individuals upon request. Voice
phone: 202-691-5200; Federal Relay Service number: 1-800-877-8339.

-8-

Table 1. Business sector: Labor productivity, hourly compensation, unit labor costs, and prices,
seasonally adjusted.
Real
Hourly
hourly
Unit
Implicit
Year
Labor
compencompenUnit
nonlabor
price
and
producHours
sation
sation
labor
payments
deflator
quarter
tivity
Output
worked
(1)
(2)
costs
(3)
(4)
--------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate (5)
2021 III
II
I
2020 ANNUAL
2020 IV
III
II
I
2019 ANNUAL

-5.0 r
2.6
4.2

1.5 r
8.2
8.2

6.9 r
5.4
3.8

4.4 r
8.9 r
1.5

-2.1 r
0.4 r
-2.1

9.9 r
6.1 r
-2.6

0.8 r
9.0 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

-0.7 r
2.0
3.9

6.0 r
15.8
1.2

6.7 r
13.5
-2.6

5.8 r
3.4 r
6.4

0.5 r
-1.3 r
4.4

6.5 r
1.3 r
2.4

2.8 r
9.9 r
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 r
113.0
112.3

124.5 r
124.1
121.6

111.6 r
109.8
108.3

136.5 r
135.0 r
132.2

114.5 r
115.1 r
115.0

122.3 r
119.5 r
117.7

108.7 r
108.5 r
106.2

116.3 r
114.6
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.
December 7, 2021
r=revised
Source: Bureau of Labor Statistics

-9-

Table 2. Nonfarm business sector: Labor productivity, hourly compensation, unit labor costs, and
prices, seasonally adjusted.
Real
Hourly
hourly
Unit
Implicit
Year
Labor
compencompenUnit
nonlabor
price
and
producHours
sation
sation
labor
payments
deflator
quarter
tivity
Output
worked
(1)
(2)
costs
(3)
(4)
--------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate (5)
2021 III
II
I
2020 ANNUAL
2020 IV
III
II
I
2019 ANNUAL

-5.2 r
2.4
4.3

1.8 r
8.5
8.4

7.4 r
5.9
4.0

3.9 r
8.4 r
1.4

-2.5 r
0.0 r
-2.2

9.6 r
5.9 r
-2.8

0.6 r
6.5 r
16.6

5.8 r
6.1
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

-0.6 r
1.9
4.1

6.2 r
15.9
1.3

6.8 r
13.7
-2.7

5.8 r
3.2 r
6.4

0.4 r
-1.5 r
4.5

6.3 r
1.3 r
2.3

1.6 r
8.4 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 r
112.8
112.1

124.4 r
123.9
121.4

111.8 r
109.9
108.3

136.6 r
135.2 r
132.5

114.6 r
115.3 r
115.3

122.7 r
119.9 r
118.2

108.3 r
108.1 r
106.5

116.4 r
114.8
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.
December 7, 2021
r=revised
Source: Bureau of Labor Statistics

-10-

Table 3. Manufacturing sector: Labor productivity, hourly compensation, and unit labor costs,
seasonally adjusted.
Real
Year
Labor
Hourly
hourly
Unit
and
producHours
compensacompensalabor
quarter
tivity
Output
worked
tion (1)
tion (2)
costs
--------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate (5)
2021 III
II
I
2020 ANNUAL
2020 IV
III
II
I
2019 ANNUAL

-1.8 r
8.4 r
-0.8

5.1 r
5.8
2.9

0.1 r

-6.5 r

7.0 r
-2.5
3.8

2.7 r
10.2 r
0.6

-3.7 r
1.7 r
-3.1

4.6 r
1.7 r
1.4

-6.6

6.8

5.4

6.6 r

3.2 r
19.4
-10.3
1.7 r

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
-2.2 r
-2.0 r
0.1
6.7
4.0
9.1 r
III
-1.6 r
-0.5 r
1.1
-1.1
-2.4
0.4 r
II
-2.0
-3.4 r
-1.4
1.7
-1.7
3.8
I
-0.9 r
-4.0 r
-3.1
6.2
5.4
7.1 r
--------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year
2021 III
II
I

2.2 r
7.3
2.3

6.1 r
17.2
-0.2

3.9 r
9.2
-2.5

5.9 r
1.9 r
5.6

0.6 r
-2.8 r
3.7

3.7 r
-5.0 r
3.2

2020 ANNUAL

0.1 r

-6.5 r

-6.6

6.8

5.4

6.6 r

2020 IV
III
II
I

3.0
1.6 r
-3.2 r
-1.0 r

-2.4
-5.4 r
-15.4 r
-2.9 r

-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
4.9 r
13.3 r
4.8 r

2019 ANNUAL

-1.4

-1.7

-0.2

2.8

1.0

4.3

2019 IV
-1.7 r
-2.5 r
-0.8
3.3
1.3
5.1 r
III
-1.8
-2.5
-0.7
2.3
0.5
4.2
II
-1.6 r
-1.7 r
-0.1
3.5
1.6
5.3 r
I
-0.6 r
0.1 r
0.6
2.1
0.5
2.7 r
--------------------------------------------------------------------------------------------------Indexes 2012=100
2021 III
II
I

99.4 r
99.9 r
97.9 r

102.2 r
101.0 r
99.6 r

102.8 r
101.1
101.7

2020 ANNUAL

96.1 r

95.3 r

2020 IV
III
II
I

98.1
97.3
93.1
95.7

98.9
96.3
86.2
99.8

2019 ANNUAL

96.0 r

r
r
r
r

129.7 r
128.8 r
125.7

108.8 r
109.8 r
109.4

130.4 r
128.9 r
128.4 r

99.2

123.2

109.1

128.2 r

r
r
r
r

100.8
99.0
92.5
104.3

125.5
122.4
126.4
119.0

110.2
108.1
113.0
105.5

128.0
125.8
135.8
124.4

101.9 r

106.2

115.4

103.5

120.3 r

r
r
r
r

2019 IV
95.3 r
101.2 r
106.3
116.8
103.8
122.6 r
III
95.8 r
101.8 r
106.2
114.9
102.8
120.0 r
II
96.2 r
101.9 r
105.9
115.2
103.4
119.8 r
I
96.7 r
102.8 r
106.3
114.7
103.9
118.7 r
--------------------------------------------------------------------------------------------------See footnotes following Table 6.
December 7, 2021
r=revised
Source: Bureau of Labor Statistics

-11-

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

0.7 r
5.6 r
1.1

9.7 r
-0.1
6.7

8.9 r
-5.4
5.5

-0.2

-8.1

4.8
44.6
-20.3
-2.6

11.0
97.9
-54.4
-10.0

-2.0 r

-2.0 r

1.7 r
13.1 r
1.8

-4.6 r
4.3 r
-1.9

1.0 r
7.1 r
0.7

-8.0

6.8

5.5

7.0

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

0.0

2.3

0.4

4.4 r

2019 IV
-0.8 r
-1.9 r
-1.1
10.2
7.4
11.1 r
III
-1.1 r
-0.3 r
0.8
-2.4
-3.6
-1.3 r
II
-1.2 r
-3.6 r
-2.4
0.9
-2.4
2.2 r
I
-3.3 r
-6.2 r
-2.9
5.8
5.0
9.4 r
--------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year
2021 III
II
I

3.0 r
12.8
5.1

6.7 r
23.7
1.7

3.6 r
9.7
-3.3

7.1 r
2.0 r
5.6

1.7 r
-2.6 r
3.6

4.0 r
-9.5 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
-5.5 r
-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

-2.0 r

-2.0 r

0.0

2.3

0.4

4.4 r

2019 IV
-1.6 r
-3.0 r
-1.4
3.5
1.5
5.2 r
III
-2.3 r
-2.7 r
-0.4
1.3
-0.5
3.7 r
II
-2.3 r
-2.0 r
0.3
2.6
0.8
5.1 r
I
-1.7 r
-0.4 r
1.4
1.6
0.0
3.4 r
--------------------------------------------------------------------------------------------------Indexes 2012=100
2021 III
II
I

101.8 r
101.6 r
100.2 r

103.1 r
100.8 r
100.8 r

101.3 r
99.2
100.6

2020 ANNUAL

96.1 r

94.1 r

2020 IV
III
II
I

99.9
98.8
90.1
95.3

99.2
96.6
81.5
99.2

2019 ANNUAL

96.3 r

r
r
r
r

131.0 r
130.5 r
126.5

109.9 r
111.2 r
110.1

128.8 r
128.5 r
126.3 r

97.9

123.8

109.6

128.8 r

r
r
r
r

99.3
97.8
90.5
104.0

126.0
122.4
127.9
119.8

110.6
108.1
114.3
106.2

126.0
123.9
142.0
125.7

102.5 r

106.4

116.0

104.0

120.4 r

r
r
r
r

2019 IV
96.0 r
101.8 r
106.1
117.8
104.7
122.8 r
III
96.2 r
102.3 r
106.4
115.0
102.9
119.6 r
II
96.4 r
102.4 r
106.2
115.7
103.8
120.0 r
I
96.7 r
103.3 r
106.8
115.4
104.5
119.3 r
--------------------------------------------------------------------------------------------------See footnotes following Table 6.
December 7, 2021
r=revised
Source: Bureau of Labor Statistics

-12-

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

-3.6 r
9.8
-2.1

0.3 r
12.7 r
-1.1

4.0
2.6
1.0

4.1 r
5.8 r
-2.1

2020 ANNUAL

-0.4 r

-4.7 r

-4.3

7.1

5.8

7.5 r

2020 IV
III
II
I

0.5
-0.1
-3.3
6.6

10.3
21.5
-29.4
-6.4

7.6
-4.8
25.2
9.8

5.1
-9.1
29.3
8.7

7.0 r
-4.8
29.5
3.1

2019 ANNUAL

-0.7 r

-0.6

3.9

2.0

4.6 r

10.9
21.4
-31.7
-0.3
-1.3 r

-2.3 r
-2.4 r
-5.6

8.0 r
-3.7 r
0.0

2019 IV
-4.3 r
-2.1 r
2.3
0.5
-2.0
5.0 r
III
-2.2 r
-0.7 r
1.5
1.4
0.1
3.7 r
II
-3.6 r
-3.1 r
0.5
3.6
0.1
7.4 r
I
2.0 r
-1.6 r
-3.5
6.9
6.1
4.9 r
--------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year
2021 III
II
I

1.0 r
1.9
-1.3

5.5 r
10.7
-2.4

4.4
8.6
-1.1

3.8 r
1.5 r
5.9

-1.4 r
-3.1 r
3.9

2.7 r
-0.4 r
7.2

2020 ANNUAL

-0.4 r

-4.7 r

-4.3

7.1

5.8

7.5 r

2020 IV
III
II
I

0.9
-0.4 r
-0.9 r
-1.0 r

-2.2
-5.2 r
-9.8 r
-1.6 r

-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
7.5 r
9.8 r
4.8 r

2019 ANNUAL

-0.7 r

-1.3 r

-0.6

3.9

2.0

4.6 r

2019 IV
-2.1 r
-1.9 r
0.2
3.1
1.0
5.2 r
III
-1.1 r
-2.2 r
-1.1
4.3
2.5
5.5 r
II
-0.8 r
-1.4 r
-0.7
5.2
3.3
6.0 r
I
1.1 r
0.4 r
-0.7
3.0
1.3
1.9 r
--------------------------------------------------------------------------------------------------Indexes 2012=100
2021 III
II
I

97.3 r
98.2 r
95.9 r

102.4 r
102.3 r
99.3 r

2020 ANNUAL

96.5 r

97.7 r

2020 IV
III
II
I

96.4
96.3
96.3
97.1

2019 ANNUAL

96.8 r

r
r
r
r

105.3 r
104.3
103.6

127.5 r
126.3 r
124.5

107.0 r
107.6 r
108.3

131.1 r
128.6 r
129.8 r

101.3

122.4

108.4

126.9 r

r
r
r
r

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
127.6
129.2
121.1

102.5 r

105.9

114.3

102.5

118.0 r

99.6
97.1
92.5
101.7

r
r
r
r

2019 IV
95.6 r
101.8 r
106.5
114.9
102.1
120.2 r
III
96.6 r
102.3 r
105.9
114.7
102.6
118.7 r
II
97.2 r
102.5 r
105.5
114.3
102.6
117.7 r
I
98.1 r
103.4 r
105.4
113.3
102.6
115.6 r
--------------------------------------------------------------------------------------------------See footnotes following Table 6.
December 7, 2021
r=revised
Source: Bureau of Labor Statistics

-13-

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

0.7
0.8 r
5.0

2020 ANNUAL

2.2

-4.2

-6.3

16.3
-0.8
3.8
1.1

28.4
31.7
-39.0
-3.3

1.4

2.3

2020 IV
III
II
I
2019 ANNUAL

6.8
5.7 r
8.9

6.1
4.9
3.7

5.4
8.5 r
0.0

-1.2
0.0 r
-3.6

4.7
7.6 r
-4.8

15.5
-14.4 r
18.7

6.9

5.6

4.6

-10.6

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

0.9

3.9

2.1

2.5

7.7
0.7 r
1.6

8.3
58.8 r
30.0

7.8
7.9
5.1

-0.2

2.4

0.1

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

1.9

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 III
II
I

5.5
5.1 r
5.9

12.1
18.1 r
3.0

6.2
12.4
-2.8

5.3
2.5 r
6.2

0.1
-2.2 r
4.2

-0.2
-2.5 r
0.2

15.8
5.2 r
-7.7

2020 ANNUAL

2.2

-4.2

-6.3

6.9

5.6

4.6

-10.6

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

2019 ANNUAL

1.4

2.3

0.9

3.9

2.1

2.5

4.0
-0.4 r
-2.3

11.3
44.3 r
25.5

5.1
4.7
1.0

-0.2

2.4

0.1

-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

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 III
II
I

111.7
111.5 r
111.3

125.7
123.7 r
122.0

112.6
111.0
109.6

136.1
134.3 r
131.6

114.2
114.5 r
114.5

121.9
120.5 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

100.4
96.9 r
100.7

114.7
112.6 r
112.4

130.4
127.8 r
113.8

117.0
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.
December 7, 2021
r=revised
Source: Bureau of Labor Statistics

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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.

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