2018 Fourth Quarter (Preliminary) Productivity and Costs

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.

Fourth Quarter and Annual Averages 2018, Preliminary

Manufacturing sector labor productivity increased 1.3 percent during the fourth quarter of 2018, the U.S. Bureau of Labor Statistics reported today, as output increased 2.3 percent and hours worked increased 1.0 percent. (All quarterly percent changes in this release are seasonally adjusted annual rates.) From the fourth quarter of 2017 to the fourth quarter of 2018, manufacturing productivity increased 0.7 percent, reflecting a 2.8-percent increase in output and a 2.1-percent increase in hours worked. (See tables A1 and 3.) Annual average productivity increased 0.6 percent from 2017 to 2018. (See table C1.)

Durable manufacturing labor productivity increased 2.6 percent, with output increasing 5.7 percent and hours increasing 3.0 percent. Labor productivity in the nondurable manufacturing sector increased 1.2 percent, with output declining 1.2 percent and hours declining 2.4 percent. (See tables A1, 4, and 5.)

Labor productivity, or output per hour, is calculated by dividing an index of real output by an index of hours worked by all persons, including employees, proprietors, and unpaid family workers.

Revised measures

Revised and previously published measures for the third quarter of 2018 are shown in tables A2 and B1 and cover the following major sectors: nonfarm business, business, manufacturing, and nonfinancial corporations.

In the third quarter of 2018, nonfarm business productivity was revised down 0.1 percentage point, to an increase of 2.2 percent. (See table B1.) Unit labor costs in the nonfarm business sector increased 0.9 percent in the third quarter, the same rate as previously reported.

In the manufacturing sector, productivity was revised up 0.1 percentage point, to an increase of 1.1 percent. Manufacturing unit labor costs decreased 1.3 percent, a 0.1-percentage point downward revision from the previously reported figure.

In the nonfinancial corporate sector, productivity was revised up 0.6 percentage point in the third quarter of 2018, to an increase of 6.1 percent--the largest increase since a 6.7-percent increase in the fourth quarter of 2012. This upward revision to productivity is due primarily to a 0.6-percentage point upward revision to output, with a small contribution from a 0.1-percentage point downward revision to hours. (See table A2.)

Annual averages

Quarterly and annual data, where available, for all sectors from 2016 to 2018 appear in tables 1-6. Full historical measures can be found on the Productivity and Costs home page: www.bls.gov/lpc/#data.

Data in this release do not reflect the annual benchmark revision of the BLS Current Employment Statistics program data released February 1, 2019. This benchmark will be incorporated in our next release on March 7, 2019.

Nonfarm business Previous quarter N.A. N.A. 1.6 N.A. N.A. N.A. A year ago N.A. N.A. 1.9 N.A. N.A. N.A.

Business Previous quarter N.A. N.A. 1.7 N.A. N.A. N.A. A year ago N.A. N.A. 1.8 N.A. N.A. N.A.

Manufacturing Previous quarter 1.3 2.3 1.0 N.A. N.A. N.A. A Year ago 0.7 2.8 2.1 N.A. N.A. N.A.

Durable Previous quarter 2.6 5.7 3.0 N.A. N.A. N.A. manufacturing A year ago 1.3 4.4 3.1 N.A. N.A. N.A.

Nondurable Previous quarter 1.2 -1.2 -2.4 N.A. N.A. N.A. manufacturing A year ago 0.7 1.1 0.4 N.A. N.A. N.A.