Productivity And Costs By Industry: Manufacturing And .
For release 10:00 a.m. (EDT) Thursday, June 25, 2020USDL-20-1276Technical information: (202) 691-5606 productivity@bls.gov www.bls.gov/lpcMedia contact:(202) 691-5902 PressOffice@bls.govPRODUCTIVITY AND COSTS BY INDUSTRY:MANUFACTURING AND MINING INDUSTRIES – 2019Labor productivity declines were widespread among manufacturing industries in 2019, with decreases in 54 ofthe 86 four-digit NAICS industries. Of the 51 industries in durable manufacturing, 31 had productivity decreasesin 2019 led by a 7.8 percent decline in the productivity of the HVAC and commercial refrigeration equipmentindustry. Nondurable manufacturing also had widespread declines in 2019 with productivity falling in 23 of 35industries, led by a 13.1-percent decline in the other leather products industry. All four industries in the miningsector posted productivity declines in 2019 led by the coal mining industry with a decrease of 6.6 percent. (Seechart 1.)Chart 1. Manufacturing and mining industries with the largest change in productivity, 2019(NAICS 4-digit industries)Output Percent Change40Note: Bubble size represents industry employment.Value in the bubble indicates percent change inlabor productivity.30.535Magnetic mediamanufacturing andreproducing30Audio and omputer andperipheral equipmentGrain and oilseedmilling106.9Electric lightingequipment-7.78.17.1-7.86.7-5-10HVAC and commercial refrigeration equipment-7.2Tobacco-7.1-15-13.1 Other leather products-12.9 Leather and hide tanning and finishingOther furniture related productsTextile furnishings mills-20-20-15-10-505101520Hours Worked Percent Change25303540
Chart 1 shows the industries with the largest changes in productivity in 2019. Change in productivity isapproximately equal to the change in output minus the change in hours worked. Four of the six industrieswith declining productivity (below the diagonal line) had growth in hours worked with declining output.Of the six industries with productivity gains (those above the diagonal line), only audio and videoequipment had growth in both output and hours worked.Labor Productivity Trends in NAICS 3-Digit Industries, 2019Manufacturing Labor productivity decreased in 18 of the 21 NAICS 3-digit manufacturing industries in 2019,as output declined in 17 industries and hours worked rose in 10. (See chart 2.) The food industry had the largest productivity gain, 0.6 percent, as output increased and hoursdecreased. The leather and allied products industry had the largest productivity decline, 9.8 percent, asoutput fell and hours worked increased, each by 5.1 percent.Mining Labor productivity declined 2.3 percent in the oil and gas extraction industry where anincrease in hours worked outpaced growth in output. (See chart 2.)The mining, except oil and gas industry had a productivity decline of 3.8 percent, as hoursworked increased while output declined.Chart 2. Productivity growth in NAICS 3-digit manufacturing and mining industries, 20192
Trends in Unit Labor Costs in 2019Unit labor costs, which reflect the total labor costs required to produce a unit of output, rose in 77 of the86 NAICS 4-digit manufacturing industries. Of the 51 industries in durable manufacturing, 45experienced rising unit labor costs, led by the railroad rolling stock industry which increased 10.7percent. Nondurable manufacturing also experienced widespread increases in unit labor costs with 32 ofthe 35 industries recording an increase, led by the textile furnishings mills industry with a rise of 17.6percent. Of the four industries in the mining sector, three had increases in unit labor costs led by the coalmining industry which increased 7.0 percent. (See table 1.)Unit Labor Cost Trends in NAICS 3-Digit Industries, 2019Manufacturing Employers experience increased unit labor costs when hourly compensation growth exceedsproductivity growth. Unit labor costs increased in 20 of the 21 manufacturing industries, ashourly compensation growth outpaced that of productivity. Textile mills was the exceptionand had a decrease in unit labor costs due to hourly compensation declines that exceededproductivity declines. (See chart 3.)Mining Unit labor costs declined in the oil and gas extraction industry 3.4 percent, as productivitydecreased 2.3 percent and hourly compensation decreased 5.6 percent. (See chart 3.)The mining, except oil and gas industry saw a 5.6-percent increase in unit labor costs, ashourly compensation rose 1.7 percent while productivity dropped 3.8 percent.Chart 3. Unit labor costs, productivity, and hourly compensation in NAICS 3-digit manufacturingand mining industries, 2019Unit Labor CostsManufacturingTextile product mills Beverages and tobacco products.Leather and allied products.Chemicals.Apparel.Electrical equipment and appliances.Primary metals.Transportation equipment.Wood products.Paper .Petroleum and coal products.Plastics and rubber products.Printing and related support activities.Miscellaneous manufacturing.Fabricated metal products.Machinery.Nonmetallic mineral products.Furniture and related products.Food.Computer and electronic products.Textile mills.MiningMining, except oil and gas.Oil and gas extraction.-15-10-53ProductivityHourly Compensation0Percent Change51015
Long-Term Trends in Labor Productivity and Unit Labor CostsChart 4 displays the number of NAICS 4-digit manufacturing and mining industries with increasesin productivity, output, and hours worked for selected time periods through 2019.Labor Productivity Over the entire 1987-2019 period, labor productivity rose in 83 of the 91 manufacturingand mining industries. Output rose in 58 industries, while hours worked increased in only17. In the 17 industries where hours worked increased, they rose at a slow pace, 0.7 percentper year on average.During the more recent 2007-19 period, which included the Great Recession of 2007-09,productivity increased in 45 industries. These increases are predominantly the result of adecline in hours worked rather than an increase in output, as hours worked fell in 35 ofthese industries while output increased in only 18.Unit Labor Costs During the 1987-2019 period, unit labor costs increased in 76 of the 86 NAICS 4-digitmanufacturing industries. All five mining industries saw an increase in unit labor costs.From 2007 to 2019, unit labor costs increased in 79 of the 86 manufacturing industries and in 3of the 5 mining industries. Unit labor costs increased the most in the beverages industry.The computer and peripheral equipment industry recorded the largest productivity gain as well as thelargest unit labor cost decline during both the 1987-2019 and 1987-2007 periods. However, between2007 and 2019, the oil and gas extraction industry posted the greatest productivity growth and thelargest unit labor cost decline.Chart 4. Manufacturing and mining industries with increases in labor productivity, output, andhours worked(NAICS 4-digit industries)Number of Industries90807060504030201001987 - 2019Productivity1987 - 20072007 - 2019OutputHours Worked4
Additional InformationTime periods for data covered by this release precede, and are therefore not impacted by, the COVID-19pandemic.Manufacturing industry output measures for 2018 and earlier years are constructed primarily using datafrom the economic censuses and annual surveys of the U.S. Census Bureau together with data on pricechanges primarily from BLS. These measures have been revised due to the release of the 2017Economic Census and the 2018 Annual Survey of Manufactures. Manufacturing industry output for2019 is estimated based on historical relationships between BLS sectoral output, BLS price indexes, anddata on industrial production from the Federal Reserve Board.Want to know more?Find data at www.bls.gov/lpc for: Additional industries and sectorsDetailed data series: indexes of productivity and related measures; rates of change; and levels ofindustry employment, hours worked, nominal value of production, and labor compensationAdditional years and long-term dataQuestions?Additional information can be obtained by calling the BLS productivity program at (202) 691-5606or by sending an email to productivity@bls.gov. Information in this release will be made availableto sensory impaired individuals upon request. Voice phone: (202) 691-5200; Federal Relay Service:(800) 877-8339.Subscribe to news releasesSubscribe to productivity news releases on the BLS website subscriber/new.5
Technical NoteLabor Productivity: Labor productivity describes the relationship between real output and the laborhours involved in its production. These measures show the changes from period to period in the amountof goods and services produced per hour worked. Although the labor productivity measures relate outputin an industry to hours worked of all persons in that industry, they do not measure the specificcontribution of labor to growth in output. Rather, they reflect the joint effects of many influences,including: changes in technology; capital investment; utilization of capacity, energy, and materials; theuse of purchased services inputs, including contract employment services; the organization ofproduction; the characteristics and effort of the workforce; and managerial skill.Unit Labor Costs: Unit labor costs represent the cost of labor required to produce one unit of output.The unit labor cost indexes are computed by dividing an index of nominal industry labor compensationby an index of real industry output. Unit labor costs also describe the relationship between compensationper hour worked (hourly compensation) and real output per hour worked (labor productivity). Whenhourly compensation growth outpaces productivity, unit labor costs increase. Alternatively, whenproductivity growth exceeds hourly compensation, unit labor costs decrease.Output: Industry output is measured as an annual-weighted index of the changes in the various products(in real terms) provided for sale outside the industry. Real industry output is usually derived by deflatingnominal sales or values of production using BLS price indexes, but for some industries it is measured byphysical quantities of output. Industry output reflects sectoral value of production, derived by adjustingshipments for changes in inventories and removing intra-industry transactions. Industry output measuresare constructed primarily using data from the economic censuses and annual surveys of the CensusBureau, U.S. Department of Commerce, together with data on price changes primarily from BLS. Datafrom the Bureau of Economic Analysis at the U.S. Department of Commerce is used in part to constructintra-industry transactions. Other data sources include the Energy Information Administration at theU.S. Department of Energy and the U.S. Geological Survey at the U.S. Department of the Interior.Manufacturing industry output for 2019 is estimated based on historical relationships between BLSsectoral output, BLS price indexes, and data on industrial production from the Federal Reserve Board.Labor Hours: Labor hours are measured as annual hours worked by all employed persons in anindustry. Data on industry employment and hours come primarily from the BLS Current EmploymentStatistics (CES) survey and Current Population Survey (CPS). CES data on the number of total andproduction worker jobs held by wage and salary workers in nonfarm establishments are supplementedwith CPS data on self-employed and unpaid family workers to estimate industry employment. Hoursworked estimates are derived using CES and CPS employment, CES data on the average weekly hourspaid of production workers, CPS data on hours of nonproduction, self-employed, and unpaid familyworkers, and ratios of hours worked to hours paid based on data from the National CompensationSurvey (NCS). For some industries, employment and hours data are supplemented or furtherdisaggregated using data from the BLS Quarterly Census of Employment and Wages (QCEW), theCensus Bureau, or other sources. Hours worked are estimated separately for different types of workersand then are directly aggregated; no adjustments for labor composition are made.6
Labor Compensation: Labor compensation, defined as payroll plus supplemental payments, is ameasure of the cost to the employer of securing the services of labor. Payroll includes salaries, wages,commissions, dismissal pay, bonuses, vacation and sick leave pay, and compensation in kind.Supplemental payments include both legally required expenditures and payments for voluntaryprograms. The legally required portion consists primarily of federal old age and survivors’ insurance,unemployment compensation, and workers’ compensation. Payments for voluntary programs include allprograms not specifically required by legislation, such as the employer portion of private healthinsurance and pension plans. Industry compensation measures are constructed primarily using data fromthe BLS QCEW and the economic censuses of the Census Bureau at the U.S. Department of Commerce.7
Table 1. Recent labor productivity, unit labor costs, and related Percent change, 2018-2019LaborproductivityUnit compensationMiningMining. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21699.05.4-1.78.22.66.33.6Oil and gas extraction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211Oil and gas extraction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-5.6-5.6Mining, except oil and gas. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Coal mining. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Metal ore mining. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Nonmetallic mineral mining and quarrying. . . . . . . . . .1-2.3Beverages and tobacco products. . . . . . . . . . . . . . . . . . . . . . 312Beverages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3121Tobacco. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -2.2-1.8-10.64.14.6-2.86.46.68.8Textile mills. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Fiber, yarn, and thread mills. . . . . . . . . . . . . . . . . . . . . . . . .Fabric mills. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Textile and fabric finishing mills. . . . . . . . . . . . . . . . . . . . 9-0.70.4-3.1-3.1-6.32.1Textile product mills. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 314Textile furnishings mills. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3141Other textile product mills. . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.9-6.3-7.5-5.20.91.00.97.79.26.4Apparel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Apparel knitting mills. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Cut and sew apparel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Accessories and other apparel. . . . . . . . . . . . . . . . . . . . . -1.27.96.14.46.45.2Leather and allied products. . . . . . . . . . . . . . . . . . . . . . . . . . . . .Leather and hide tanning and finishing. . . . . . . . . . . . .Footwear. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Other leather products. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6-3.0-4.31.9-7.9Paper. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 322Pulp, paper, and paperboard mills. . . . . . . . . . . . . . . . . . 3221Converted paper products. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.82.3-4.82.01.22.45.0-1.07.6Printing and related support activities. . . . . . . . . . . . . . . . . 323Printing and related support activities. . . . . . . . . . . . . . . 1.71.7Petroleum and coal products. . . . . . . . . . . . . . . . . . . . . . . . . . . 324Petroleum and coal products. . . . . . . . . . . . . . . . . . . . . . . . 20.2Chemicals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Basic chemicals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Resin, rubber, and artificial fibers. . . . . . . . . . . . . . . . . . .Agricultural chemicals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Pharmaceuticals and medicines. . . . . . . . . . . . . . . . . . . . .Paints, coatings, and adhesives. . . . . . . . . . . . . . . . . . . . .Soaps, cleaning compounds, and toiletries. . . . . . . . .Other chemical products and preparations. . . . . . . . ondurable ManufacturingFood. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Animal food. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Grain and oilseed milling. . . . . . . . . . . . . . . . . . . . . . . . . . . . .Sugar and confectionery products. . . . . . . . . . . . . . . . . . .Fruit and vegetable preserving and specialty. . . . . .Dairy products. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Animal slaughtering and processing. . . . . . . . . . . . . . . .Seafood product preparation and packaging. . . . . . .Bakeries and tortilla products. . . . . . . . . . . . . . . . . . . . . . . .Other food products. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32532513252325332543255325632598
Table 1. Recent labor productivity, unit labor costs, and related data — ContinuedIndustry2017NAICScodePlastics and rubber products. . . . . . . . . . . . . . . . . . . . . . . . . . . 326Plastics products. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3261Rubber products. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32622019Employment(thousands)Percent change, 2018-2019Laborpr
the 35 industries recording an increase, led by the textile furnishings mills industry with a rise of 17.6 percent. Of the four industries in the mining sector , three had increases in unit labor costs led by the coal mining industry which increased 7.0 percent. (See table 1.) Unit Labor Cost Trends in NAICS 3-Digit Industries, 2019 .
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FISH & WILDLIFE COSTS 17TH ANNUAL REPORT TO THE NORTHWEST GOVERNORS PAGE 3 Figures 08 Figure 1: Costs by Major Area, FY2017, as Reported by Bonneville's Fish and Wildlife Division 09 Figure 2: Costs by Types of Species 10 Figure 3: Costs of FCRPS BiOp Projects 11 Figure 4: Costs Associated with ESA Listed Fish 12 Figure 5: Costs by Fund 13 Figure 6A: Costs by Category
Table 2 The Various Measures of Cost: Thirsty Thelma's Lemonade Stand Average Costs Average costs can be determined by dividing the firm's costs by the quantity of output it produces. The average cost is the cost of each typical unit of product. Average Costs Average Fixed Costs (AFC) Average Variable Costs (AVC)
ISE 468 ETM 568 Dr. Burtner SlideOzcan Chapter 9 Productivity Lecture 2 3 Productivity Definitions and Measurements 1 (Review) Productivity is one measure of the effective use of resources within an organization, industry, or nation. The classical productivity definition measures outputs relative to the inputs needed to produce them.
Source: Deloitte Access Economics. Productivity costs make up 81% of total financial costs, which is followed by deadweight losses (11%), health system costs (6%), and other costs including educational and crime and justice costs (3%) (Chart iii). Employers were est
productivity increase in 2016 than in 2015. Productivity growth in food services and drinking places in 2016 was slightly less than that of 2015 as output increased at a slower rate. Chart 1. Productivity change in the largest (by employment) 4-digit wholesale trade, retail trade, and food services and drinking places industries, 2016 . 0.3 5.5 .
bootstrapped Malmquist productivity indexes between 1993 and 2012 are constructed. Analysis of productivity change by decomposing the Total Factor Productivity Index into Efficiency Change and Technical Change is performed showing respectively whether productivity gains derive mainly from improvements in efficiency or are mostly the result
comprise of core APC costs of 26.4 billion in 2015-16, mental health costs of 6.9 billion, community costs of 5.4 billion and ambulance costs of 1.7 billion. 15. Figure 2 shows the total costs reported in 2015-16, split by setting10. The largest single proportion of costs is non-elective inpatient care, which accounts for 25.9% of
