Productivity and Costs by Industry: Manufacturing Industries, 2006
Internet: http://www.bls.gov/lpc/home.htm Historical, technical USDL 08-0382 information: (202) 691-5618 FOR RELEASE: 10:00 a.m. EDT Media contact: (202) 691-5902 THURSDAY, MARCH 20, 2008 PRODUCTIVITY AND COSTS BY INDUSTRY: MANUFACTURING INDUSTRIES, 2006 Labor productivity – defined as output per hour – rose in 52 percent of the manufacturing industries studied in 2006, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This proportion was much smaller than the 88 percent that recorded productivity increases in the previous year. Output, the production of manufactured goods, rose in 56 percent of the industries in 2006 and hours fell in 57 percent. Unit labor costs declined in 33 percent of the industries. From 1987 to 2006, labor productivity increased in all but 1 of the 86 manufacturing industries. Output rose in 78 percent of the industries and hours fell in 79 percent. Unit labor costs fell in 24 percent of the industries during the period. This report presents data for the manufacturing industries included in the attached tables. Productivity data for industries in other sectors have been published in separate releases and can be found on the BLS Labor Productivity and Costs web site at http://www.bls.gov/lpc/home.htm. Beginning with this release, productivity and related indexes and rates of change are available on the web site for all industries for which BLS maintains productivity measures. Previously, data for NAICS 5- and 6-digit manufacturing and trade industries were available only upon request. 2005-2006 change Labor productivity increased in 2006 in 13 of the 21 3-digit manufacturing industries. Table 1 shows the range of productivity changes in these industries. Strong output growth and a slight drop in hours resulted in the largest productivity gain, 8.7 percent, in computer and electronic products manufacturing (NAICS 334). In contrast, a drop in output combined with an increase in labor hours resulted in the largest productivity decline, 6.4 percent, in beverages and tobacco products manufacturing (NAICS 312). Labor productivity rose in 45 of the 86 4-digit manufacturing industries in 2006. (See table 1.) Productivity increased 3.0 percent or more in approximately one third of those industries. Output grew in 48 industries and hours fell in 49 industries. The computer and peripheral equipment manufacturing industry (NAICS 3341) posted the largest productivity gain, 31.7 percent, spurred by strong output growth combined with falling hours. The largest decline in labor productivity, 9.7 percent, occurred in textile and fabric finishing and fabric coating mills (NAICS 3133). Labor productivity declined in many more industries in 2006 than over the period from 1987 to 2006. Unit labor costs, which reflect the total labor costs required to produce a unit of output, fell in 28 of the 86 manufacturing industries in 2006. (See table 1.) Unit labor costs fell most rapidly in computer and peripheral equipment manufacturing (NAICS 3341) and communications equipment manufacturing (NAICS 3342), the two industries with the largest increases in labor productivity. Long-term trends Between 1987 and 2006, labor productivity increased in 85 of the 86 manufacturing industries. Output rose in 67 industries and hours fell in 68 industries. Productivity grew fastest in computer and peripheral equipment manufacturing (NAICS 3341) and semiconductor and other electronic component manufacturing (NAICS 3344), an average 24.1 percent per year and 16.8 percent per year, respectively. Both industries experienced strong growth in output combined with falling hours over the long term period. Productivity fell from 1987 to 2006 in just one industry, accessories and other apparel manufacturing (NAICS 3159). Unit labor costs fell in 21 of the 86 manufacturing industries from 1987 to 2006. The two industries with the fastest productivity growth, computer and peripheral equipment manufacturing (NAICS 3341) and semiconductor and other electronic component manufacturing (NAICS 3344), also recorded the largest declines in unit labor costs.
- Technical note
- Table 1. Percent change in output per hour, output, hours, compensation, and unit labor costs, 2005-2006
- Table 2. Average annual percent change in output per hour, output, hours, compensation, and unit labor costs, 1987-2006
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Last Modified Date: March 20, 2008