Email
Print
FeedProductivity increases 2.3% in third quarter 2011; unit labor costs fall 2.5%
PRODUCTIVITY AND COSTS
Third Quarter 2011, Revised
Nonfarm business sector labor productivity increased at a 2.3 percent
annual rate during the third quarter of 2011, the U.S. Bureau of Labor
Statistics reported today, with output and hours worked rising 3.2 percent
and 0.8 percent, respectively. (All quarterly percent changes in this
release are seasonally adjusted annual rates.) From the third quarter of
2010 to the third quarter of 2011, output increased 2.4 percent as hours
rose 1.4 percent, resulting in a 0.9 percent increase in productivity.
(See tables A and 2.) 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.
The productivity measures released today are based on more recent and more
complete data than were available for the preliminary report issued
November 3. (See Revised measures.)
Unit labor costs in nonfarm businesses fell 2.5 percent in the third
quarter of 2011, reflecting the 2.3 percent increase in output per hour
combined with a 0.2 percent decline in hourly compensation. Unit labor
costs rose 0.4 percent over the last four quarters. (See tables A and 2.) 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.
Nonfarm business real hourly compensation decreased 3.2 percent in the
third quarter of 2011, reflecting a 0.2 percent decline in hourly
compensation combined with a 3.1 percent increase in consumer prices
(seasonally adjusted annual rates). Real hourly compensation is the ratio
of hourly compensation to consumer prices. This measure declined 2.3
percent from the same quarter a year ago; this is the largest decline in
this series which begins in 1948.
Manufacturing sector productivity grew 5.0 percent in the third quarter of
2011, as output rose 4.6 percent and hours decreased 0.4 percent.
Productivity jumped 9.5 percent in the durable goods sector and edged up
0.1 percent in the nondurable goods sector. (See tables A, 3, 4, and 5.)
From the third quarter of 2010 to the third quarter of 2011, manufacturing
sector productivity increased 2.9 percent. Unit labor costs in
manufacturing fell 5.1 percent in the third quarter of 2011 and decreased
1.9 percent over the last four quarters.
The data sources and methods used in the preparation of the
manufacturing output series differ from those used in preparing the
business and nonfarm business output series, and these measures are not
directly comparable. See Technical Notes for further information on
data sources.
Third quarter data for the nonfinancial corporate sector was released
today. Output per hour decreased 2.6 percent as output declined 0.8
percent and hours grew 1.9 percent. Unit labor costs rose 3.0 percent.
(See table C.)
Revised measures
Previous and revised productivity and related measures for the second and
third quarters for the nonfarm business, business, and manufacturing
sectors and for the second quarter for nonfinancial corporations are
presented in tables B and C, respectively.
In the third quarter of 2011, nonfarm business sector productivity growth
was 2.3 percent reflecting a downward revision to output combined with a
slight upward revision to hours worked. Unit labor costs were little
changed, as the downward revision to productivity was offset by a downward
revision to hourly compensation. In the manufacturing sector, productivity
growth was 5.0 percent rather than 5.4 percent as previously reported.
Unit labor costs declined 5.1 percent.
In the second quarter of 2011, nonfarm business sector productivity,
output, and hours were unrevised. Unit labor costs fell 0.1 percent rather
than increasing 2.8 percent due solely to a downward revision to hourly
compensation. Manufacturing sector productivity declined 2.2 percent in
the second quarter, slightly less than reported November 3. Unit labor
costs increased 0.1 percent, much less than the 5.5 percent preliminary
estimate, due to a steep downward revision to hourly compensation and the
slight upward revision to productivity. The large downward revision to
manufacturing hourly compensation was concentrated in durable goods
manufacturing industries.
Nonfinancial corporate sector productivity grew 3.2 percent in the second
quarter of 2011, as revised. (See tables C and 6.)
__________
The preliminary Productivity and Costs press release for the fourth quarter
of 2011 is scheduled to be released on Thursday, February 2, 2012 at
8:30 a.m. (EST)
======================================================================================================
Table A. Revised third-quarter 2011 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 2.3 0.9 1.9 0.6 5.0 2.9 9.5 4.5 0.1 2.2
Output 3.2 2.4 3.0 2.0 4.6 4.1 8.3 7.3 1.0 1.0
Hours 0.8 1.4 1.0 1.5 -0.4 1.2 -1.1 2.6 0.9 -1.2
Hourly
compensation -0.2 1.4 -0.5 1.3 -0.4 0.9 0.2 0.4 -1.3 1.6
Real hourly
compensation -3.2 -2.3 -3.5 -2.4 -3.4 -2.7 -2.8 -3.3 -4.2 -2.1
Unit labor
costs -2.5 0.4 -2.4 0.7 -5.1 -1.9 -8.5 -4.0 -1.4 -0.6
======================================================================================================
Table B. Revised and previous measures: third quarter and second quarter 2011
Sector Nonfarm Durable Nondurable
Business Business Manufacturing Manufacturing Manufacturing
Revised Previous Revised Previous Revised Previous Revised Previous Revised Previous
------------------------------------------------------------------------------------------------------
Percent change, annual rate, third quarter 2011
Productivity 2.3 3.1 1.9 2.8 5.0 5.4 9.5 9.9 0.1 0.7
Output 3.2 3.8 3.0 3.6 4.6 4.7 8.3 8.3 1.0 1.0
Hours 0.8 0.6 1.0 0.8 -0.4 -0.8 -1.1 -1.4 0.9 0.4
Hourly
compensation -0.2 0.6 -0.5 0.3 -0.4 0.6 0.2 1.7 -1.3 -1.4
Real hourly
compensation -3.2 -2.4 -3.5 -2.7 -3.4 -2.4 -2.8 -1.3 -4.2 -4.3
Unit labor
costs -2.5 -2.4 -2.4 -2.4 -5.1 -4.6 -8.5 -7.4 -1.4 -2.1
------------------------------------------------------------------------------------------------------
Percent change, annual rate, second quarter 2011
Productivity -0.1 -0.1 0.1 0.1 -2.2 -2.3 -3.1 -3.2 0.0 -0.1
Output 1.8 1.8 1.7 1.7 0.4 0.4 1.8 1.7 -0.9 -1.0
Hours 2.0 2.0 1.6 1.6 2.7 2.7 5.0 5.0 -0.9 -0.9
Hourly
compensation -0.2 2.7 0.2 3.1 -2.1 3.0 -4.9 2.3 2.8 3.9
Real hourly
compensation -4.1 -1.3 -3.8 -1.0 -6.0 -1.0 -8.6 -1.7 -1.2 -0.2
Unit labor
costs -0.1 2.8 0.1 3.0 0.1 5.5 -1.9 5.7 2.8 4.0
======================================================================================================
Table C. Nonfinancial corporations: preliminary third quarter and revised second quarter 2011
Real
Hourly hourly Unit Implicit
Produc- compen- compen- labor Unit price
tivity Output Hours sation sation costs profits deflator
------------------------------------------------------------------------------------------------------
Percent change, annual rate, third quarter 2011
Q to Q -2.6 -0.8 1.9 0.3 -2.6 3.0 7.5 3.7
Y to Y -0.1 2.1 2.2 1.3 -2.4 1.4 9.3 2.4
Percent change, annual rate, second quarter 2011
Revised 3.2 6.1 2.9 0.8 -3.2 -2.3 28.9 1.8
Previous 4.2 7.3 2.9 2.5 -1.5 -1.7 27.5 1.8
======================================================================================================
- Technical notes
- Table 1. Business sector: Productivity, hourly compensation, unit labor costs, and prices, seasonally adjusted
- Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs, and prices, seasonally adjusted
- Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs, seasonally adjusted
- Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs, seasonally adjusted
- Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs, seasonally adjusted
- Table 6. Nonfinancial corporate sector: Productivity, hourly compensation, unit labor costs, unit profits, and prices, seasonally adjusted
- Sources and footnotes for tables
More Small Business »
