Productivity And Costs In Selected Service-Providing — 2004-06-16

The Bureau of Labor Statistics of the U.S. Department of Labor reported today on productivity and costs for selected service-providing and mining industries. Labor productivity--defined as output per hour--rose in 2002 in 24 of the additional 32 industries for which 2002 data are now available. (See box on page 3 for further information.) In almost three-fifths of the industries with productivity gains, there was a decline in hours that was larger than the decline in output. Output increased in only 12 industries, and hours rose in just 7 industries. Unit labor costs (the ratio of total compensation to output) declined in 17 of the 24 industries with productivity gains. Over the period 1987 to 2002, labor productivity increased in 29 of the 32 industries. Output rose in 29 industries, while hours grew in 18 industries. Unit labor costs fell in 7 of the 29 industries registering productivity growth. Three-fourths of the 32 industries recorded labor productivity gains in 2002.