Transmission of material in this release is embargoed until USDL-12-1795
8:30 a.m. (EDT) Wednesday, September 5, 2012
Technical information: (202) 691-5606 dprweb@bls.gov www.bls.gov/lpc
Media contact (202) 691-5902 PressOffice@bls.gov
PRODUCTIVITY AND COSTS
Second Quarter 2012, Revised
Nonfarm business sector labor productivity increased at a 2.2 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 2.4 percent in output and 0.1 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 1.2 percent as output and hours worked rose 3.0
percent and 1.7 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. The measures released
today were based on more recent source data than were available for the
preliminary report.
Unit labor costs in nonfarm businesses increased 1.5 percent in the second
quarter of 2012, while hourly compensation increased 3.7 percent. Unit
labor costs rose 0.9 percent over the last four quarters. (See table
A.)
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 0.1 percent in the second quarter
of 2012, as output grew 1.5 percent and hours worked increased 1.4
percent. Productivity increased 3.7 percent in the durable goods sector in
contrast to the decrease of 3.8 percent in the nondurable goods sector.
Over the last four quarters, manufacturing productivity increased 2.9
percent, as output increased 5.5 percent and hours rose 2.6 percent. Unit
labor costs in manufacturing rose 0.8 percent in the second quarter of
2012 and decreased 2.4 percent from the same quarter a year ago. (See
tables A and 3.)
Preliminary second-quarter 2012 measures of productivity and costs were
announced for the nonfinancial corporate sector. Productivity increased
2.1 percent in the second quarter of 2012, as output and hours rose 2.5
percent and 0.4 percent, respectively. (See tables C 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
The measures released today are based on more recent source data than were
available for the preliminary report. Tables B and C present previous and
revised productivity and related measures for the major sectors: nonfarm
business, business, and manufacturing, as well as nonfinancial
corporations.
In the second quarter of 2012, nonfarm business productivity increased
2.2 percent, rather than 1.6 percent as reported August 8. The revised
figure reflects both an upward revision to output and a downward revision
to hours worked. Hourly compensation increased 3.7 percent, a larger gain
than previously reported. Because the upward revision to hourly
compensation was smaller than the upward revision to productivity, the
increase in unit labor costs was revised down to 1.5 percent. In the
manufacturing sector, productivity growth was revised down due to a
slight downward revision to output. Unit labor costs increased 0.8
percent, more than previously reported.
In the first quarter of 2012, nonfarm business and manufacturing
productivity were unrevised from the August 8 release. For both sectors
an upward revision in compensation accounted for the upward revision to
unit labor costs.
Nonfinancial corporate sector productivity grew at a 1.6 percent annual
rate in the first quarter of 2012, reflecting an upward revision to
output. (See table C.)
______________
The preliminary Productivity and Costs press release for third-quarter
2012 is scheduled to be released on Thursday, November 1, 2012 at 8:30
a.m. (EDT).
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Table A. Revised 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
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Productivity 2.2 1.2 2.5 1.3 0.1 2.9 3.7 6.1 -3.8 -0.2
Output 2.4 3.0 2.6 3.1 1.5 5.5 5.4 9.5 -2.8 1.2
Hours 0.1 1.7 0.1 1.8 1.4 2.6 1.6 3.2 1.0 1.5
Hourly
compensation 3.7 2.2 3.7 2.1 0.9 0.4 0.4 0.3 2.0 0.5
Real hourly
compensation 2.9 0.3 2.9 0.2 0.2 -1.4 -0.4 -1.5 1.3 -1.4
Unit labor
costs 1.5 0.9 1.2 0.8 0.8 -2.4 -3.2 -5.4 6.1 0.7
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Table B. Revised and previous measures: second quarter and 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, second quarter 2012
Productivity 2.2 1.6 2.5 1.9 0.1 0.2 3.7 4.3 -3.8 -4.0
Output 2.4 2.0 2.6 2.3 1.5 1.7 5.4 6.2 -2.8 -3.4
Hours 0.1 0.4 0.1 0.4 1.4 1.4 1.6 1.9 1.0 0.7
Hourly
compensation 3.7 3.3 3.7 3.3 0.9 0.5 0.4 -0.8 2.0 2.8
Real hourly
compensation 2.9 2.6 2.9 2.6 0.2 -0.3 -0.4 -1.5 1.3 2.1
Unit labor
costs 1.5 1.7 1.2 1.4 0.8 0.3 -3.2 -4.9 6.1 7.2
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Percent change, annual rate, first quarter 2012
Productivity -0.5 -0.5 -0.6 -0.6 5.5 5.5 10.9 10.9 -0.1 -0.1
Output 2.7 2.7 2.7 2.7 10.1 10.1 16.3 16.3 3.6 3.5
Hours 3.2 3.2 3.3 3.3 4.4 4.4 4.8 4.8 3.7 3.7
Hourly
compensation 5.8 5.1 5.6 4.9 6.7 5.1 8.2 5.2 3.9 4.9
Real hourly
compensation 3.3 2.6 3.1 2.4 4.2 2.6 5.6 2.6 1.4 2.3
Unit labor
costs 6.4 5.6 6.3 5.6 1.2 -0.4 -2.5 -5.2 4.0 5.0
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Table C. Nonfinancial corporations: preliminary second-quarter 2012 and revised first-quarter 2012
Real
Hourly hourly Unit Implicit
Produc- compen- compen- labor Unit price
tivity Output Hours sation sation costs profits deflator
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Percent change, annual rate, second quarter 2012
Q to Q 2.1 2.5 0.4 2.9 2.1 0.8 9.1 1.4
Y to Y 1.1 3.1 2.0 2.0 0.1 0.9 3.8 1.1
Percent change, annual rate, first quarter 2012
Revised 1.6 5.1 3.4 6.0 3.5 4.3 -2.1 1.7
Previous 1.2 4.7 3.4 5.4 2.8 4.1 -1.8 1.7
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