Productivity and Costs by Industry: Manufacturing Industries News Release — 2011-03-23

Labor productivity - defined as output per hour - rose in 28 percent of the 86 detailed manufacturing industries studied in 2009, the U.S. Bureau of Labor Statistics reported today. This was down from 38 percent of the detailed manufacturing industries in 2008 and 56 percent in 2007. Unit labor costs, which reflect the total labor costs required to produce a unit of output, declined in 14 percent of the industries in 2009. Output and hours also rose in fewer industries in 2009 than in the previous two years. Output rose in 7 of the 86 industries in 2009, while hours increased in only 1. Output and hours declined at double-digit rates in over 7 out of 10 industries studied. Productivity increased the most in seafood product preparation and packaging and in agricultural chemical manufacturing. In both industries, hours declined while output increased.