For release 10:00 a.m. (EDT) Thursday, May 18, 2017                                                    USDL-17-0619

Technical information: 	(202) 691-5618 • productivity@bls.gov • www.bls.gov/lpc 
Media contact:		    (202) 691-5902 • PressOffice@bls.gov


					                 PRODUCTIVITY AND COSTS BY INDUSTRY
				                SELECTED SERVICE-PROVIDING INDUSTRIES -- 2016


Labor productivity rose in 17 of 28 selected service-providing industries in 2016, the U.S. Bureau of Labor 
Statistics reported today. This was greater than in 2015, when labor productivity increased in 14 of 28 industries. 
In 2016, output and hours increased in fewer industries than in 2015.  

Unit labor costs declined in 5 industries in 2016. Each of the industries with declines in unit labor costs also 
recorded increases in productivity. Increases in labor productivity counter the impact of rising hourly compensation 
on unit labor costs facing employers.

Long term measures of productivity and cost through 2015 are available for 58 industries; included for the first 
time are veterinary services.

Trends in Labor Productivity in 2016

*	Labor productivity increased in 17 of 28 industries in 2016. Among those with increasing productivity, output 
    grew in 13 industries. 
*	Hours worked grew in 15 of the 28 industries.
*	Productivity gains of at least 8.0 percent occurred in 3 industries where output increases coincided with declines 
    in hours worked: cable and other subscription programming (19.1 percent), wireless telecommunications carriers 
	(12.7 percent), and accounting and bookkeeping services (8.8 percent).
*	Three industries recorded productivity declines despite output gains of at least 3.0 percent because of larger 
	increases in hours worked: warehousing and storage (-8.8 percent); couriers and messengers (-1.5 percent); 
	and truck, trailer, and RV rental and leasing (-1.4 percent).

Trends in Unit Labor Costs in 2016

*	Unit labor costs fell in 5 industries in 2016. 
*	All unit labor cost declines occurred in industries where productivity rose. 
*	Each of the industries where productivity fell also recorded an increase in unit labor costs. 
*	Hourly labor compensation rose in all but 1 of the 28 industries measured. 

Long Term Productivity Trends 

*	Over the long term, productivity rose in 45 service-providing industries. For the majority of the industries 
    studied, this period extends from 1987 to 2015. 
*	Median long term productivity growth for all 58 industries was approximately 1.6 percent per year.
*	Output increased over the long term in 44 industries while hours worked increased in 38 industries. 
*	Productivity increased in 36 of the 58 industries in the more recent 2007 to 2015 period that began with a 
	severe recession. Only 35 industries had increases in output and 23 experienced growth in hours worked.
*	Veterinary services is published for the first time in this release. Productivity in this industry increased 
    by 0.9 percent from 2014 to 2015.

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                                       Technical Note

Labor Productivity:  Labor productivity describes the relationship between real output and the 
labor hours involved in its production. These measures show the changes from period to period in 
the amount of goods and services produced per hour worked. Although the labor productivity 
measures relate output in an industry to hours worked of all persons in that industry, they do not 
measure the specific contribution 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; the use of purchased services inputs, including contract employment 
services; the organization of production; 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 
compensation by an index of real industry output. Unit labor costs also describe the relationship 
between compensation per hour and real output per hour (labor productivity). Increases in hourly 
compensation increase unit labor costs; increases in labor productivity offset compensation 
increases and reduce unit labor costs.

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 deflating nominal sales or values of production using BLS price indexes, but for some 
industries it is measured by physical quantities of output. 

Industry output measures are constructed primarily using data from the economic censuses and 
annual surveys of the U.S. Census Bureau, U.S. Department of Commerce, together with 
information on price changes from BLS. Other data sources include:  the Energy Information 
Administration, U.S. Department of Energy; the Bureau of Transportation Statistics, U.S. 
Department of Transportation; the U.S. Geological Survey, U.S. Department of the Interior; the 
U.S. Postal Service; the Postal Rate Commission; and the Federal Deposit Insurance Corporation. 
Industrial production data from the Quarterly Service Survey from the Census Bureau are used to 
construct preliminary output measures for 2016 for some industries.

Labor Hours:  Labor hours are measured as annual hours worked by all employed persons in an 
industry. Data on industry employment and hours come primarily from the BLS Current 
Employment Statistics (CES) survey and Current Population Survey (CPS). CES data on the 
number of total and production worker jobs held by wage and salary workers in nonfarm 
establishments are supplemented with CPS self-employed and unpaid family worker data to 
estimate industry employment. Hours worked estimates are derived using CES and CPS 
employment, CES data on the average weekly hours paid of production workers, CPS data on 
hours of nonproduction, self-employed, and unpaid family workers, and ratios of hours worked to 
hours paid based on data from the National Compensation Survey (NCS). For some industries, 
employment and hours data are supplemented or further disaggregated using data from the BLS 
Quarterly Census of Employment and Wages (QCEW), the Census Bureau, or other sources. 
Additional sources of employment and hours data for certain service industries include the 
Association of American Railroads, the U.S. Department of Transportation, and the U.S. Postal 
Service. Hours worked are estimated separately for different types of workers and then are directly 
aggregated; no adjustments for labor composition are made.

Labor Compensation:  Labor compensation, defined as payroll plus supplemental payments, is a 
measure 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 
voluntary programs. The legally required portion consists primarily of federal old age and 
survivors’ insurance, unemployment compensation, and workers’ compensation. Payments for 
voluntary programs include all programs not specifically required by legislation, such as the 
employer portion of private health insurance and pension plans. Industry compensation measures 
are constructed primarily using data from the economic censuses and annual surveys of the Census 
Bureau, U.S. Department of Commerce. The estimates for 2016 are constructed using data from 
the BLS Quarterly Census of Employment and Wages (QCEW).

Table 1.  Recent labor productivity, unit labor costs, and related data




	
Industry
	
2012 NAICS code
	
2016
Employment
(thousands)
	
Percent change, 2015-2016


	
Labor productivity
	
Unit labor costs
	
Output
	
Hours worked
	
Labor compensation






	
Utilities
				




	



	
Utilities
	
22
	
556.2
	
-0.8
	
3.7
	
-0.8
	
0.0
	
2.9



	
Utilities
	
221
	
556.2
	
-0.8
	
3.7
	
-0.8
	
0.0
	
2.9



	
Power generation and supply
	
2211
	
393.6
	
-1.0
	
4.0
	
-0.7
	
0.3
	
3.3



	
Natural gas distribution
	
2212
	
112.5
	
1.0
	
1.7
	
-0.8
	
-1.8
	
0.8



	
Water, sewage and other systems
	
2213
	
50.1
	
-5.2
	
9.3
	
-3.3
	
2.1
	
5.7



	



	
Transportation and Warehousing
				




	



	
Air transportation
	
481
	
448.1
	
0.4
	
5.7
	
3.4
	
2.9
	
9.3



	
Line-haul railroads
	
482111
	
173.1
	
9.6
	
-7.0
	
-0.1
	
-8.9
	
-7.1



	
Truck transportation
	
484
	
1,671.2
	
0.5
	
1.8
	
0.0
	
-0.5
	
1.8



	
General freight trucking
	
4841
	
1,201.5
	
-2.3
	
5.1
	
-1.9
	
0.5
	
3.1



	
General freight trucking, local
	
48411
	
317.4
	
-2.8
	
9.3
	
-3.7
	
-0.9
	
5.3



	
General freight trucking, long-distance
	
48412
	
884.1
	
-2.6
	
4.2
	
-1.7
	
0.9
	
2.5



	
Specialized freight trucking
	
4842
	
469.7
	
6.5
	
-4.5
	
3.4
	
-2.9
	
-1.3



	
Postal service
	
491
	
608.9
	
1.3
	
3.1
	
1.2
	
-0.2
	
4.4



	
Postal service
	
4911
	
608.9
	
1.3
	
3.1
	
1.2
	
-0.2
	
4.4



	
Couriers and messengers
	
492
	
675.4
	
-1.5
	
3.4
	
3.6
	
5.2
	
7.1



	
Warehousing and storage
	
493
	
922.1
	
-8.8
	
5.6
	
5.1
	
15.2
	
11.0



	
Warehousing and storage
	
4931
	
922.1
	
-8.8
	
5.6
	
5.1
	
15.2
	
11.0



	



	
Information
				




	



	
Publishing
	
511
	
760.0
	
2.3
	
7.3
	
-0.4
	
-2.6
	
6.9



	
Newspaper publishers
	
51111
	
183.0
	
4.3
	
2.5
	
-5.8
	
-9.7
	
-3.5



	
Periodical publishers
	
51112
	
108.4
	
2.7
	
1.6
	
-4.2
	
-6.7
	
-2.7



	
Software publishers
	
5112
	
356.1
	
-2.1
	
10.4
	
1.8
	
4.0
	
12.4



	
Broadcasting, except Internet
	
515
	
277.2
	
7.7
	
-2.7
	
4.3
	
-3.2
	
1.4



	
Radio and television broadcasting
	
5151
	
223.0
	
2.3
	
2.0
	
1.3
	
-0.9
	
3.4



	
Cable and other subscription programming
	
5152
	
54.2
	
19.1
	
-9.6
	
6.6
	
-10.5
	
-3.6



	
Wired telecommunications carriers
	
5171
	
590.6
	
3.0
	
4.6
	
1.4
	
-1.6
	
6.1



	
Wireless telecommunications carriers
	
5172
	
122.5
	
12.7
	
-10.4
	
8.5
	
-3.8
	
-2.9



	



	
Finance and Insurance
				




	



	
Commercial banking
	
52211
	
1,307.0
	
-3.5
	
3.8
	
-0.6
	
3.1
	
3.2



	



	
Real Estate and Rental and Leasing
				




	



	
Truck, trailer, and RV rental and leasing
	
53212
	
76.3
	
-1.4
	
3.8
	
4.2
	
5.7
	
8.2



	



	
Professional and Technical Services
				




	



	
Accounting and bookkeeping services
	
5412
	
1,145.4
	
8.8
	
-3.3
	
8.1
	
-0.6
	
4.6



	
Accounting and bookkeeping services
	
54121
	
1,145.4
	
8.8
	
-3.3
	
8.1
	
-0.6
	
4.6



	
Engineering services
	
54133
	
973.0
	
-0.2
	
0.4
	
0.2
	
0.4
	
0.6



	



	
Administrative and Waste Services
				




	



	
Travel arrangement and reservation services
	
5615
	
238.4
	
0.3
	
3.4
	
6.6
	
6.2
	
10.2



	



	
Health Care and Social Assistance
				




	



	
Medical and diagnostic laboratories
	
6215
	
271.2
	
2.1
	
2.1
	
2.2
	
0.1
	
4.3



	



	
Arts, Entertainment, and Recreation
				




	



	
Amusement parks and arcades
	
7131
	
208.8
	
3.4
	
3.9
	
2.7
	
-0.7
	
6.6



	
Gambling industries
	
7132
	
136.1
	
1.3
	
1.5
	
2.1
	
0.8
	
3.7



	



	
Other Services
				




	



	
Automotive repair and maintenance
	
8111
	
1,113.5
	
-0.8
	
7.1
	
-0.5
	
0.3
	
6.5



	
Drycleaning and laundry services
	
8123
	
316.6
	
1.3
	
1.3
	
2.4
	
1.0
	
3.7

Table 2.  Long run labor productivity, unit labor costs, and related data




	
Industry
	
2012 NAICS code
	
2015
Employment
(thousands)
	
Average annual percent change, 1987-2015


	
Labor productivity
	
Unit labor costs
	
Output
	
Hours worked
	
Labor compensation






	
Utilities
				




	



	
Utilities
	
22
	
556.0
	
2.2
	
1.5
	
1.4
	
-0.8
	
2.9



	
Utilities
	
221
	
556.0
	
2.2
	
1.5
	
1.4
	
-0.8
	
2.9



	
Power generation and supply
	
2211
	
394.2
	
3.1
	
0.5
	
2.1
	
-1.0
	
2.7



	
Natural gas distribution
	
2212
	
112.9
	
0.6
	
3.8
	
-0.3
	
-1.0
	
3.5



	
Water, sewage and other systems
	
2213
	
48.9
	
-1.6
	
4.5
	
0.8
	
2.5
	
5.4



	



	
Transportation and Warehousing
				




	



	
Air transportation
	
481
	
434.9
	
3.1
	
0.6
	
2.6
	
-0.4
	
3.3



	
Line-haul railroads
	
482111
	
189.8
	
3.6
	
-0.3
	
2.0
	
-1.5
	
1.7



	
Truck transportation(1)
	
484
	
1,668.9
	
0.6
	
0.9
	
2.1
	
1.5
	
3.0



	
General freight trucking(1)
	
4841
	
1,193.1
	
1.1
	
1.0
	
2.4
	
1.3
	
3.4



	
General freight trucking, local(1)
	
48411
	
313.1
	
2.4
	
0.2
	
3.6
	
1.2
	
3.8



	
General freight trucking, long-distance
	
48412
	
880.0
	
1.2
	
0.4
	
2.3
	
1.1
	
2.7



	
Specialized freight trucking(2)
	
4842
	
475.8
	
0.7
	
1.8
	
2.2
	
1.4
	
4.0



	
Used household and office goods moving
	
48421
	
98.7
	
-0.7
	
2.6
	
-0.2
	
0.5
	
2.4



	
Other specialized trucking, local(2)
	
48422
	
236.9
	
0.1
	
2.4
	
1.9
	
1.8
	
4.4



	
Other specialized trucking, long-distance(2)
	
48423
	
140.1
	
1.3
	
1.2
	
3.9
	
2.5
	
5.1



	
Postal service
	
491
	
596.9
	
0.5
	
3.2
	
-0.7
	
-1.2
	
2.5



	
Postal service
	
4911
	
596.9
	
0.5
	
3.2
	
-0.7
	
-1.2
	
2.5



	
Couriers and messengers
	
492
	
641.5
	
-1.9
	
3.3
	
0.4
	
2.4
	
3.7



	
Warehousing and storage(1)
	
493
	
837.4
	
2.2
	
0.0
	
5.8
	
3.5
	
5.7



	
Warehousing and storage(1)
	
4931
	
837.4
	
2.2
	
0.0
	
5.8
	
3.5
	
5.7



	
General warehousing and storage(1)
	
49311
	
725.4
	
3.4
	
-0.9
	
7.2
	
3.6
	
6.2



	
Refrigerated warehousing and storage(1)
	
49312
	
55.9
	
-0.3
	
1.7
	
2.8
	
3.1
	
4.6



	



	
Information
				




	



	
Publishing
	
511
	
770.9
	
3.7
	
1.5
	
3.4
	
-0.3
	
4.9



	
Newspaper, book, and directory publishers
	
5111
	
435.8
	
-0.4
	
4.4
	
-2.6
	
-2.2
	
1.7



	
Newspaper publishers
	
51111
	
201.2
	
-1.2
	
4.4
	
-4.3
	
-3.1
	
-0.1



	
Periodical publishers
	
51112
	
113.5
	
-0.8
	
5.1
	
-1.6
	
-0.8
	
3.4



	
Book publishers
	
51113
	
72.7
	
-0.4
	
5.0
	
-0.9
	
-0.5
	
4.1



	
Software publishers
	
5112
	
335.1
	
11.6
	
-6.0
	
18.1
	
5.9
	
11.1



	
Motion picture and video exhibition
	
51213
	
137.9
	
1.9
	
1.8
	
1.8
	
-0.1
	
3.6



	
Broadcasting, except Internet
	
515
	
289.4
	
2.9
	
1.8
	
3.0
	
0.1
	
4.8



	
Radio and television broadcasting
	
5151
	
227.9
	
1.9
	
2.1
	
1.6
	
-0.3
	
3.7



	
Radio broadcasting
	
51511
	
92.9
	
3.7
	
1.6
	
2.6
	
-1.0
	
4.3



	
Cable and other subscription programming
	
5152
	
61.5
	
5.1
	
2.7
	
6.9
	
1.7
	
9.8



	
Wired telecommunications carriers
	
5171
	
598.0
	
3.7
	
-0.8
	
2.8
	
-0.9
	
1.9



	
Wireless telecommunications carriers
	
5172
	
129.8
	
11.7
	
-6.7
	
19.1
	
6.6
	
11.1



	



	
Finance and Insurance
				




	



	
Commercial banking
	
52211
	
1,284.7
	
3.4
	
1.8
	
3.2
	
-0.2
	
5.1



	



	
Real Estate and Rental and Leasing
				




	



	
Passenger car rental
	
532111
	
120.2
	
1.8
	
2.0
	
2.7
	
0.9
	
4.8



	
Truck, trailer, and RV rental and leasing
	
53212
	
72.2
	
2.2
	
1.1
	
2.5
	
0.4
	
3.6



	
Video tape and disc rental
	
53223
	
14.1
	
6.8
	
-2.1
	
-1.2
	
-7.4
	
-3.3



	



	
Professional and Technical Services
				




	



	
Accounting and bookkeeping services(3)
	
5412
	
1,126.6
	
2.6
	
1.2
	
3.4
	
0.7
	
4.5



	
Accounting and bookkeeping services(3)
	
54121
	
1,126.6
	
2.6
	
1.2
	
3.4
	
0.7
	
4.5



	
Offices of certified public accountants(3)
	
541211
	
468.3
	
1.9
	
2.4
	
2.9
	
1.1
	
5.4



	
Tax preparation services
	
541213
	
139.9
	
0.5
	
1.8
	
2.4
	
1.9
	
4.2



	
Other accounting services(3)
	
541219
	
346.6
	
4.7
	
-2.1
	
4.9
	
0.2
	
2.7



	
Architectural services
	
54131
	
191.4
	
1.5
	
1.9
	
2.4
	
0.9
	
4.4



	
Engineering services
	
54133
	
963.7
	
1.2
	
3.0
	
2.8
	
1.6
	
5.9



	
Advertising agencies
	
54181
	
218.1
	
1.6
	
2.5
	
2.2
	
0.6
	
4.7



	
Photography studios, portrait
	
541921
	
59.5
	
0.2
	
1.8
	
1.2
	
1.0
	
3.0



	
Veterinary services(4)
	
54194
	
358.2
	
-1.1
	
4.1
	
1.3
	
2.5
	
5.5



	



	
Administrative and Waste Services
				




	



	
Employment placement and executive search(5)
	
56131
	
301.6
	
4.1
	
0.3
	
5.1
	
1.0
	
5.5



	
Travel arrangement and reservation services(3)
	
5615
	
226.0
	
6.2
	
-1.2
	
3.6
	
-2.4
	
2.3



	
Travel agencies
	
56151
	
100.0
	
5.5
	
-0.6
	
4.2
	
-1.2
	
3.5



	
Janitorial services
	
56172
	
1,354.2
	
1.9
	
1.5
	
3.5
	
1.6
	
5.0



	



	
Health Care and Social Assistance
				




	



	
Medical and diagnostic laboratories(5)
	
6215
	
270.3
	
2.0
	
0.5
	
5.1
	
3.1
	
5.7



	
Medical laboratories(5)
	
621511
	
194.4
	
1.8
	
0.5
	
5.1
	
3.2
	
5.6



	
Diagnostic imaging centers(5)
	
621512
	
75.9
	
2.2
	
0.7
	
5.2
	
2.9
	
6.0



	
Hospitals, except psychiatric and substance abuse hospitals(6)
	
6221,3
	
4,675.9
	
0.5
	
3.3
	
1.9
	
1.4
	
5.3



	



	
Arts, Entertainment, and Recreation
				




	



	
Amusement parks and arcades(7)
	
7131
	
203.4
	
-2.7
	
6.2
	
-0.9
	
1.9
	
5.2



	
Amusement and theme parks
	
71311
	
179.6
	
-0.8
	
4.2
	
1.9
	
2.8
	
6.2



	
Gambling industries(3)
	
7132
	
136.2
	
2.0
	
2.4
	
2.0
	
0.1
	
4.4



	
Golf courses and country clubs(2)
	
71391
	
382.4
	
-1.2
	
4.2
	
-0.1
	
1.1
	
4.1



	
Fitness and recreational sports centers(2)
	
71394
	
601.9
	
3.7
	
-0.8
	
4.0
	
0.3
	
3.2



	
Bowling centers
	
71395
	
68.6
	
0.5
	
2.7
	
-1.1
	
-1.6
	
1.5



	



	
Accommodation and Food Services
				




	



	
Accommodation and food services
	
72
	
13,279.1
	
0.8
	
2.7
	
2.3
	
1.5
	
5.1



	
Accommodation
	
721
	
1,953.9
	
2.1
	
1.7
	
2.8
	
0.7
	
4.5



	
Traveler accommodation
	
7211
	
1,868.4
	
2.1
	
1.7
	
2.8
	
0.7
	
4.5



	
Hotels and motels, except casino hotels
	
72111
	
1,565.1
	
1.5
	
2.4
	
2.2
	
0.7
	
4.7



	
Food services and drinking places
	
722
	
11,325.2
	
0.4
	
3.1
	
2.1
	
1.7
	
5.3



	
Special food services
	
7223
	
807.0
	
1.0
	
1.6
	
2.4
	
1.4
	
4.0



	
Drinking places, alcoholic beverages
	
7224
	
383.3
	
-0.5
	
3.5
	
-0.6
	
-0.1
	
2.8



	
Restaurants and other eating places
	
72251
	
10,134.9
	
0.5
	
3.3
	
2.3
	
1.8
	
5.6



	
Full-service restaurants
	
722511
	
5,254.0
	
0.6
	
3.6
	
2.3
	
1.7
	
6.0



	
Limited-service eating places
	
722513,4,5
	
4,880.9
	
0.4
	
2.8
	
2.3
	
1.9
	
5.1



	



	
Other Services
				




	



	
Automotive repair and maintenance
	
8111
	
1,131.6
	
1.0
	
2.3
	
1.4
	
0.4
	
3.7



	
Reupholstery and furniture repair
	
81142
	
20.5
	
-0.5
	
3.4
	
-2.7
	
-2.2
	
0.6



	
Personal care services
	
8121
	
1,198.0
	
2.4
	
1.6
	
3.4
	
1.0
	
5.1



	
Hair, nail, and skin care services
	
81211
	
974.7
	
2.3
	
1.7
	
3.0
	
0.7
	
4.8



	
Funeral homes and funeral services
	
81221
	
110.5
	
-0.4
	
4.1
	
-0.3
	
0.1
	
3.9



	
Drycleaning and laundry services
	
8123
	
310.3
	
2.0
	
1.5
	
1.0
	
-0.9
	
2.5



	
Coin-operated laundries and drycleaners
	
81231
	
40.2
	
2.5
	
1.7
	
0.5
	
-2.0
	
2.2



	
Drycleaning and laundry services
	
81232
	
143.1
	
0.8
	
2.1
	
-1.1
	
-1.9
	
1.0



	
Linen and uniform supply
	
81233
	
127.0
	
2.1
	
1.1
	
2.9
	
0.8
	
4.0



	
Photofinishing
	
81292
	
11.6
	
2.6
	
2.0
	
-4.3
	
-6.7
	
-2.4







	

		Footnotes

		(1) For NAICS industries 484, 4841, 48411, 493, 4931, 49311, and 49312, average annual percent changes are for 1992-2015.

		(2) For NAICS industries 4842, 484220, 484230, 71391, and 71394, average annual percent changes are for 2002-2015.

		(3) For NAICS industries 5412, 54121, 541211, 541219, 5615, and 7132, average annual percent changes are for 1997-2015.

		(4) For NAICS industry 54194, average annual percent changes are for 2004-2015.

		(5) For NAICS industries 56131, 6215, 621511, and 621512, average annual percent changes are for 1994-2015.

		(6) For NAICS industry 6221,3, average annual percent changes are for 1993-2014. Employment is for 2014.

		(7) For NAICS industry 7131, average annual percent changes are for 2007-2015.