THE PRIMARY SOURCE
Read the release
Historical release narrative reproduced from the official public-domain source. Statistical tables, standard technical appendices, administrative material and attendance rosters are omitted; formatting is adapted for reading. Figures retain the release's historical context and may have been revised. Consult the linked source for the complete document.
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.)
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
Sector Nonfarm Durable Nondurable Business Business Manufacturing Manufacturing Manufacturing Revised Previous Revised Previous Revised Previous Revised Previous Revised Previous
Source: U.S. Bureau of Labor Statistics · Original release Sep 5, 2012.
Archived Nov 11, 2026. Source reuse policy. Formatting has been adapted for reading; the source’s conclusions remain attributed to its publisher.