|  August 28, 2014  |  
Light Rain   56.0F  |  Forecast »
Bookmark and Share Email this page Email Print this page Print Feed Feed

Productivity increases 1.6% in second quarter 2012; unit labor costs rise 1.7%

   PRODUCTIVITY AND COSTS
                   Second Quarter 2012, Preliminary
                  
Nonfarm business sector labor productivity increased at a 1.6 percent 
annual rate during the second quarter of 2012, the U.S. Bureau of Labor 
Statistics reported today. The increase in productivity reflects 
increases of 2.0 percent in output and 0.4 percent in hours worked. 
(All quarterly percent changes in this release are seasonally adjusted 
annual rates.) From the second quarter of 2011 to the second quarter of 
2012, productivity increased 1.1 percent as output and hours worked 
rose 2.9 percent and 1.8 percent, respectively. (See table A.) 

Labor productivity, or output per hour, is calculated by dividing an 
index of real output by an index of hours worked of all persons, 
including employees, proprietors, and unpaid family workers.  

Unit labor costs in nonfarm businesses increased 1.7 percent in the 
second quarter of 2012, while hourly compensation increased 3.3 
percent. Unit labor costs rose 0.8 percent over the last four quarters. 
(See table A.) 

----------------------------------------------------------------------
Data in this release reflect the regular multi-year revision to the 
National Income and Product Accounts (NIPA) released by the Bureau of 
Economic Analysis of the U.S. Department of Commerce on July 27, 2012. 
See Revised measures. 
----------------------------------------------------------------------

BLS defines 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 output per hour tend to reduce them.

Manufacturing sector productivity rose 0.2 percent in the second 
quarter of 2012, as output grew 1.7 percent and hours worked increased 
1.4 percent. Over the last four quarters, manufacturing productivity 
increased 2.9 percent, as output increased 5.6 percent and hours rose 
2.6 percent. Unit labor costs in manufacturing rose 0.3 percent in the 
second quarter of 2012 and decreased 2.9 percent from the same quarter 
a year ago. (See tables A and 3.) 

Revised first-quarter 2012 measures of productivity and costs were 
announced for the nonfinancial corporate sector. Productivity 
increased 1.2 percent in the first quarter of 2012, as output and 
hours rose 4.7 percent and 3.4 percent, respectively. (See tables D 
and 6.)

The concepts, sources, and methods used for the manufacturing and 
nonfinancial corporate output series differ from those used in the 
business and nonfarm business output series; these output measures are 
not directly comparable. See Technical Notes for a more detailed 
explanation. 


Revised measures


Measures of output for the business, nonfarm business, and nonfinancial 
corporate (NFC) sectors, and compensation for all sectors incorporate 
the revised National Income and Product Accounts (NIPA) data released 
on July 27 by the Bureau of Economic Analysis, U.S. Department of 
Commerce.  As a result, output was revised back to the first quarter of 
2009 for the business, nonfarm business, and NFC sectors.  Compensation 
was subject to revisions back to the first quarter of 2008 for the 
business and nonfarm business sectors, and back to the first quarter of 
2009 for the manufacturing and NFC sectors. Furthermore, hours were 
subject to revisions back to the first quarter of 2008 for the 
business, nonfarm business, and NFC sectors, due to revised NIPA data 
on compensation of all employees and employment in government 
enterprises. Measures of manufacturing output were revised back to 1987 
to reflect revised output indexes constructed by BLS using data from 
the U.S. Department of Commerce; manufacturing hours were revised back 
to the first quarter of 2012. 

As a result of the revisions, productivity and related measures were 
revised in the business, nonfarm business, and NFC sectors back to the 
first quarter of 2008.  In the manufacturing sector, productivity and 
related measures were subject to revisions back to 1987.  

Table B presents previous and revised productivity and related measures 
for the nonfarm business, business, and manufacturing sectors for the 
first quarter of 2012 and table C presents annual data for nonfarm 
business and total manufacturing from 2009 to 2011. Table D presents 
revised and previous measures for nonfinancial corporations for the 
first quarter of 2012, in addition to annual data from 2009 to 2011. 
Revised quarterly and annual series for recent years appear in tables 
1-6 and in appendix tables 1-6. Full historical annual and quarterly 
measures can be found on the productivity and costs home page 
http://www.bls.gov/lpc/#data.

In the first quarter of 2012, nonfarm business productivity declined 
0.5 percent, a smaller decline than reported in the preliminary 
estimate. The revised figure reflects an upward revision to output and 
a slight downward revision to hours. Unit labor costs grew 5.6 percent 
in the first quarter, due primarily to a large upward revision to 
hourly compensation. In the manufacturing sector, productivity growth 
in the first quarter was 5.5 percent, as output growth was revised up 
and hours were revised down. Unit labor costs declined 0.4 percent, 
rather than decreasing 4.9 percent as previously reported.
 
For the year 2011, nonfarm business productivity growth was 0.7 
percent, an upward revision from the previous estimate of 0.4 percent. 
(See table C.) Unit labor costs increased 2.0 percent, a larger 
increase than reported June 6. Manufacturing productivity increased at 
the same 2.5 percent rate that was reported previously. The 0.1 percent 
increase in unit labor costs was more than the 1.0 percent decline 
published June 6, due to an upward revision to hourly compensation.

For the year 2010, nonfarm business productivity growth was revised 
down to 3.1 percent from the previous estimate of 4.0 percent due to a 
downward revision in output. (See table C.) Unit labor costs declined 
1.0 percent, a smaller decline than reported June 6. Manufacturing 
productivity increased 6.4 percent, slightly less than reported 
previously. The 5.0 percent decline in unit labor costs was more than 
the 4.7 percent decline published June 6.

For the year 2009, nonfarm business productivity growth was 2.9 
percent, as the decline in output was less than previously reported. 
(See table C.) Unit labor costs showed a decline of 1.5 percent, after 
revision. In manufacturing, productivity grew 0.1 percent, rather than 
0.5 percent. Unit labor costs were not revised, increasing 4.0 percent. 

Over the most recent ten-year period (2001-2011) nonfarm business 
productivity increased at an average annual rate of 2.2 percent. 
Manufacturing productivity grew at an annual average rate of 3.3 
percent. 

In the nonfinancial corporate sector, first-quarter 2012 productivity 
growth was 1.2 percent; the preliminary estimate was 0.3 percent. For 
the years 2011 and 2010, productivity growth was greater than 
previously reported, due to an upward revision in output. (See tables D 
and 6.)
___________



The revised Productivity and Costs press release for second-quarter 
2012 is scheduled to be released on Wednesday, September 5, 2012 at 
8:30 a.m. (EDT).


======================================================================================================
Table A. Preliminary second-quarter 2012 measures: percent change from previous quarter at annual rate 
         (Q to Q) and from same quarter a year ago (Y to Y)

Sector                    Nonfarm                                        Durable         Nondurable
                          Business         Business      Manufacturing   Manufacturing   Manufacturing
                          
                       Q to Q   Y to Y  Q to Q  Y to Y  Q to Q  Y to Y  Q to Q  Y to Y  Q to Q  Y to Y
------------------------------------------------------------------------------------------------------ 
Productivity             1.6     1.1      1.9     1.1     0.2     2.9     4.3     6.2    -4.0    -0.3
Output                   2.0     2.9      2.3     3.0     1.7     5.6     6.2     9.7    -3.4     1.1
Hours                    0.4     1.8      0.4     1.9     1.4     2.6     1.9     3.3     0.7     1.4
Hourly
 compensation            3.3     1.9      3.3     1.8     0.5    -0.1    -0.8    -0.7     2.8     0.9
Real hourly
 compensation            2.6     0.0      2.6    -0.1    -0.3    -1.9    -1.5    -2.5     2.1    -1.0
Unit labor 
 costs                   1.7     0.8      1.4     0.6     0.3    -2.9    -4.9    -6.5     7.2     1.2
======================================================================================================
Table B. Revised and previous measures: first quarter 2012 

Sector            Nonfarm                                             Durable           Nondurable
                  Business         Business         Manufacturing     Manufacturing     Manufacturing
                  
              Revised Previous  Revised Previous  Revised Previous  Revised Previous  Revised Previous
------------------------------------------------------------------------------------------------------
				Percent change, annual rate, first quarter 2012
Productivity    -0.5    -0.9     -0.6     -1.0       5.5      5.2     10.9     9.9      -0.1     0.1
Output           2.7     2.4      2.7      2.4      10.1     10.0     16.3    15.4       3.5     4.3
Hours            3.2     3.3      3.3      3.4       4.4      4.6      4.8     4.9       3.7     4.1
Hourly 
 compensation    5.1     0.4      4.9      0.3       5.1      0.0      5.2    -0.6       4.9     1.0
Real hourly 
 compensation    2.6    -2.0      2.4     -2.1       2.6     -2.4      2.6    -3.0       2.3    -1.4
Unit labor 
 costs           5.6     1.3      5.6      1.3      -0.4     -4.9     -5.2    -9.6       5.0     0.9
==================================================================================================================
Table C. Revised and previous annual average measures, 2009-2011

Sector                       Nonfarm Business                 |                 Manufacturing
                                                              |
                 2011             2010              2009      |       2011            2010             2009  
           Revised Previous Revised Previous Revised Previous | Revised Previous Revised Previous Revised Previous
--------------------------------------------------------------|---------------------------------------------------
		            Percent change                    |                  Percent change
Productivity   0.7     0.4      3.1     4.0     2.9     2.3   |   2.5      2.5     6.4      6.6     0.1      0.5
Output         2.6     2.4      3.1     4.0    -4.5    -5.1   |   4.8      4.8     6.4      6.6   -12.9    -12.5
Hours          1.9     1.9      0.0     0.0    -7.2    -7.2   |   2.2      2.2     0.0      0.0   -13.0    -13.0
Hourly                                                        |
 compensation  2.7     2.2      2.0     1.9     1.4     1.7   |   2.6      1.5     1.1      1.6     4.1      4.6
Real hourly                                                   |
 compensation -0.5    -0.9      0.4     0.3     1.8     2.1   |  -0.5     -1.6    -0.5     -0.1     4.5      5.0
Unit labor                                                    |
 costs         2.0     1.8     -1.0    -2.0    -1.5    -0.7   |   0.1     -1.0    -5.0     -4.7     4.0      4.0


==================================================================================================================
Table D.  Nonfinancial corporations: Revised and previous first-quarter 2012 measures, and revised 
          annual measures 2009-2011
        
                                                        Real 
                                           Hourly       hourly        Unit                    Implicit
             Produc-                       compen-      compen-       labor       Unit        price
             tivity    Output     Hours    sation       sation        costs       profits     deflator
------------------------------------------------------------------------------------------------------  

                                 Percent change, annual rate, first quarter 2012
                                 
Revised        1.2       4.7       3.4       5.4          2.8           4.1        -1.8          1.7
Previous       0.3       3.8       3.5       0.0         -2.4          -0.3        -1.5         -0.3

                                          Percent change, annual average
                                     
2011           1.4       4.0       2.6       2.5         -0.6           1.1         5.5          1.8
2010           5.8       6.0       0.2       1.7          0.0          -3.9        31.0         -0.5
2009           0.5      -7.4      -7.8       2.0          2.3           1.5        -5.5          1.8

======================================================================================================






        



Add your comment:
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement