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Third Quarter 2012, Revised
(Note: This release was reissued December 17, 2012 to correct data for the nonfinancial corporate sector-measures for all other sectors were correct as published December 5. Measures for the nonfinancial corporate sector had not incorporated revised source data on output. All measures based on output, including productivity and unit labor costs, were affected for the period 2009 Q1 to 2012 Q1. Percent changes were subject to correction through 2012 Q2. Results for 2012 Q3 were correct as originally published. Corrected data are reflected in the text and tables C and 6 of this release.)
Nonfarm business sector labor productivity increased at a 2.9 percent annual rate during the third quarter of 2012, the U.S. Bureau of Labor Statistics reported today. The increase in productivity reflects increases of 4.2 percent in output and 1.3 percent in hours worked. (All quarterly percent changes in this release are seasonally adjusted annual rates.) From the third quarter of 2011 to the third quarter of 2012, productivity increased 1.7 percent as output and hours worked rose 3.5 percent and 1.8 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 declined 1.9 percent in the third quarter of 2012, while hourly compensation increased 0.9 percent. Unit labor costs rose slightly, 0.1 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 declined 0.7 percent in the third quarter of 2012, as output decreased 0.7 percent and hours were unchanged. Productivity fell 1.6 percent in the durable goods sector and increased 0.2 percent in the nondurable goods sector. Over the last four quarters, manufacturing productivity increased 1.3 percent, as output increased 4.0 percent and hours worked rose 2.6 percent. Unit labor costs in manufacturing grew 3.2 percent in the third quarter of 2012 and increased 1.5 percent from the same quarter a year ago. (See tables A and 3.) Nonfinancial corporate sector productivity decreased 4.0 percent in the third quarter of 2012. (See table C.)
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 third quarter of 2012, nonfarm business productivity growth increased 2.9 percent, rather than 1.9 percent as reported November 1. The revision was due solely to an upward revision to output. Unit labor costs were revised down and decreased 1.9 percent, due to both the upward revision to productivity and a downward revision to hourly compensation. In the manufacturing sector, productivity declined 0.7 percent, as revised. Unit labor costs increased 3.2 percent, due primarily to a large upward revision to hourly compensation.
In the second quarter of 2012, nonfarm business productivity, output, and hours were unrevised. Unit labor costs decreased 0.5 percent rather than increasing 1.7 percent, the result of a downward revision to hourly compensation. In the manufacturing sector, output and productivity growth were revised down by 0.3 percent. Unit labor cost growth was revised up, to 9.0 percent, reflecting a large upward revision to hourly compensation. Second-quarter 2012 measures for the nonfinancial corporate sector were virtually the same as reported November 1.
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
Percent change, annual rate, third quarter 2012
Percent change, annual rate, second quarter 2012
Percent change, annual rate, third quarter 2012
Percent change, annual rate, second quarter 2012
*Data in these rows have been corrected
Source: U.S. Bureau of Labor Statistics · Original release Dec 5, 2012.
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