Economic News Release

For release 10:00 a.m. (EDT) Thursday, March 29, 2012                                          USDL-12-0550

Technical information:  (202) 691-5618  •  dipsweb@bls.gov  •  www.bls.gov/lpc
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                PRODUCTIVITY AND COSTS BY INDUSTRY:  MANUFACTURING INDUSTRIES, 2010


Labor productivity - defined as output per hour - rose in 83 percent of the 86 detailed manufacturing 
industries studied in 2010, the U.S. Bureau of Labor Statistics reported today. This was up from 30 
percent in 2009. Unit labor costs, which reflect the total labor costs required to produce a unit of output, 
declined in 73 percent of the industries in 2010 compared to only 21 percent in 2009, as productivity 
increased more rapidly than hourly compensation.

For many industries, the productivity increases in 2010 were driven by large increases in output coupled 
with declines or more modest gains in hours. Output rose in 64 of the 86 industries in 2010, and hours 
rose in 40 of the industries. The number of industries with increases in labor productivity and output was 
higher in 2010 than in any other year since 2005. The number of industries with increases in hours was 
higher than in any year since 1997, and the number with declines in unit labor costs was the highest since 
the series began in 1987.  

Industry labor productivity measures are updated as data become available. Productivity measures for 
industries in other sectors can be accessed on the BLS Labor Productivity and Costs website at 
www.bls.gov/lpc. 

Labor productivity increased in 19 of the 21 3-digit NAICS manufacturing industries in 2010. Output 
increased in 16 of these industries, and hours declined in 11. Unit labor costs fell in 20 of the 3-digit 
manufacturing industries in 2010.

Industry productivity performance over the longer, 1987-2010 period contrasts with the performance in 
2010 and the previous year. Between 1987 and 2010, labor productivity increased in 94 percent of the 
detailed manufacturing industries, with over 85 percent of industries recording average productivity 
growth between 0.1 and 4.0 percent per year. In 2010, large gains in industry productivity were more 
common than over the 1987-2010 period, while in 2009 large falloffs were more common. In 2010, 57 
percent of industries posted productivity gains of 6.1 percent or more, while in 2009, 40 percent of 
industries recorded productivity losses of 6.0 percent or more.