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Productivity and Costs by Industry: Manufacturing and Mining Industries News Release
For release 10:00 a.m. (ET) Thursday, April 29, 2021 USDL-21-0725
Technical information: (202) 691-5606 • productivity@bls.gov • www.bls.gov/lpc
Media contact: (202) 691-5902 • PressOffice@bls.gov
PRODUCTIVITY AND COSTS BY INDUSTRY
MANUFACTURING AND MINING INDUSTRIES – 2020
Labor productivity rose in 41 of the 86 NAICS four-digit manufacturing industries in 2020,
the U.S. Bureau of Labor Statistics reported today. The footwear industry had the largest
productivity gain with an increase of 14.5 percent. Three out of the four industries in the
mining sector posted productivity declines in 2020, with the greatest decline occurring in
the metal ore mining industry with a decrease of 6.7 percent. //PRIN QCT Resilio Test ZUNI3 11212024//
Although more mining and manufacturing industries recorded productivity gains in 2020 than
2019, declines in both output and hours worked were widespread. Output fell in over 90
percent of detailed industries in 2020 and 87 percent had declines in hours worked.
Seventy-two industries had declines in both output and hours worked in 2020. This was the
greatest number of such industries since 2009. Within this set of industries, 35 had increasing
labor productivity.
Labor Productivity Trends in NAICS 3-Digit Industries, 2020
Manufacturing
• Labor productivity increased in 9 of the 21 NAICS 3-digit manufacturing industries in 2020
as hours worked fell in all 21 industries and output declined in 19.
• Both output and hours worked fell by over 5.0 percent in 13 industries.
• The apparel industry had the largest productivity gain, 10.1 percent.
• The furniture and related products industry had the largest productivity decline, 7.4 percent.
Mining
• Labor productivity rose by 3.4 percent in the oil and gas extraction industry as hours worked
declined more than output.
• The mining, except oil and gas industry had a productivity decline of 5.0 percent. Output fell
12.6 percent in 2020 while hours worked declined 8.0 percent.
Trends in Unit Labor Costs in 2020
Unit labor costs increase when hourly compensation growth exceeds productivity growth.
Manufacturing
• In manufacturing, unit labor costs increased in 18 of the 21 NAICS 3-digit industries. The
three industries with declines in unit labor costs were all nondurable manufacturers with the
largest decline occurring in apparel.
• Twenty-six NAICS 4-digit manufacturing industries had declines in unit labor costs. Of these,
nearly three quarters also recorded growth in productivity.
Mining
• Unit labor costs declined in the oil and gas extraction industry by 1.7 percent but increased
in the mining, except oil and gas industry by 2.6 percent.
• Unit labor costs rose in 3 of the 4 NAICS 4-digit mining industries measured. All three of
these industries recorded declines in hourly compensation along with even greater declines in
productivity.
Long-Term Trends in Labor Productivity and Unit Labor Costs
Labor Productivity
• Over the entire 1987-2020 period, labor productivity rose in 83 of the 91 manufacturing and
mining industries. Output rose in 50 industries while hours worked increased in only 14. In
the 14 industries where hours worked increased, they rose at a slow pace, 0.7 percent per year
on average.
• During the more recent 2007-2020 period, productivity increased in just 38 industries. These
increases are predominantly the result of a decline in hours worked rather than an increase in
output, as hours worked fell in 79 NAICS 4-digit manufacturing and mining industries while
output increased in only 11. Oil and gas extraction had the greatest average annual growth in
output over this period, 6.0 percent.
Unit Labor Costs
• During the 1987-2020 period, unit labor costs increased in 78 of the 86 NAICS 4-digit
manufacturing industries. All five mining industries saw an increase in unit labor costs.
• From 2007 to 2020, unit labor costs increased in 82 of the 86 manufacturing industries and in
3 of the 5 mining industries. Unit labor costs increased the most in the pharmaceutical and
medicine industry.
The computer and peripheral equipment industry recorded the largest productivity gain as well as the
largest unit labor cost decline during both the 1987-2020 and 1987-2007 periods. However, between 2007
and 2020, the oil and gas extraction industry posted the greatest productivity growth and the largest
unit labor cost decline.
Additional Information
Manufacturing industry output measures for 2019 and earlier years are constructed primarily using data
from the economic censuses and annual surveys of the U.S. Census Bureau together with data on price
changes primarily from BLS. These measures have been revised due to the release of the 2017 Economic
Census Summary Series and the 2019 Annual Survey of Manufactures. Manufacturing industry output for 2020
is estimated based on historical relationships between BLS sectoral output, BLS price indexes, and data
on industrial production from the Federal Reserve Board.
Mining industry output measures are constructed primarily using data from the U.S. Energy Information
Administration and the U.S. Geological Survey’s Mineral Commodity Summaries and Mineral Yearbooks. The
data from the U.S. Energy Information Administration are usually revised on a monthly schedule while the
U.S. Geological Survey’s publications are released annually.
The COVID-19 pandemic did not impact the availability of source data used to construct productivity
measures in this release. Data source providers continued to collect and publish high quality industry
data for 2020. Additional information can be found on the BLS website at
https://www.bls.gov/covid19/effects-of-covid-19-pandemic-on-productivity-and-costs-statistics.htm#Industry-Productivity
Access the productivity data dashboard at www.bls.gov/lpc/lpc_by_industry_dashboard.xlsx for
• Additional industries and sectors
• Detailed data series: indexes of productivity and related measures; rates of change; and levels of industry
employment, hours worked, nominal value of production, and labor compensation
• Additional years and long-term data
Subscribe to productivity news releases on the BLS website at
https://subscriptions.bls.gov/accounts/USDOLBLS/subscriber/new.
Information in this release will be made available to sensory impaired individuals upon request. Voice phone:
(202) 691-5200; Federal Relay Service: (800) 877-8339.
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 worked (hourly compensation) and real output per hour worked (labor productivity). When
hourly compensation growth outpaces productivity, unit labor costs increase. Alternatively, when
productivity 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 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 reflects sectoral value of production, derived by adjusting
shipments for changes in inventories and removing intra-industry transactions. Industry output measures
are constructed primarily using data from the economic censuses and annual surveys of the Census
Bureau, U.S. Department of Commerce, together with data on price changes primarily from BLS. Data
from the Bureau of Economic Analysis at the U.S. Department of Commerce is used in part to construct
intra-industry transactions. Other data sources include the Energy Information Administration at the
U.S. Department of Energy and the U.S. Geological Survey at the U.S. Department of the Interior.
Manufacturing industry output for 2020 is estimated based on historical relationships between BLS
sectoral 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 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 data on self-employed and unpaid family workers 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. 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 BLS QCEW and the economic censuses of the Census Bureau at the U.S. Department of Commerce.
Table 1. Recent labor productivity, unit labor costs, and related data
Industry
2017 NAICS code
2020 Employment (thousands)
Percent change, 2019-2020
Labor productivity
Unit labor costs
Output
Hours worked
Labor compen- sation
Hourly compen- sation
Mining
Mining
21
584.7
13.9
-10.8
-7.3
-18.6
-17.3
1.6
Oil and gas extraction
211
138.6
3.4
-1.7
-5.6
-8.7
-7.2
1.6
Oil and gas extraction
2111
138.6
3.4
-1.7
-5.6
-8.7
-7.2
1.6
Mining, except oil and gas
212
179.4
-5.0
2.6
-12.6
-8.0
-10.3
-2.5
Coal mining
2121
41.6
-3.8
2.9
-24.7
-21.8
-22.5
-0.9
Metal ore mining
2122
41.9
-6.7
5.5
-8.9
-2.4
-3.9
-1.6
Nonmetallic mineral mining and quarrying
2123
95.9
-4.3
1.4
-7.1
-3.0
-5.9
-3.0
Nondurable Manufacturing
Food
311
1,666.2
-0.3
5.7
-1.4
-1.0
4.3
5.3
Animal food
3111
67.4
-9.6
9.3
-0.7
9.8
8.5
-1.2
Grain and oilseed milling
3112
61.8
-1.3
5.1
-0.9
0.3
4.2
3.8
Sugar and confectionery products
3113
73.9
1.6
0.0
-1.3
-2.8
-1.3
1.5
Fruit and vegetable preserving and specialty
3114
170.6
4.3
6.7
-1.3
-5.4
5.3
11.3
Dairy products
3115
152.8
0.8
2.4
-0.3
-1.1
2.2
3.3
Animal slaughtering and processing
3116
540.4
-2.8
8.8
-0.3
2.5
8.5
5.8
Seafood product preparation and packaging
3117
32.4
10.7
-5.8
1.3
-8.5
-4.6
4.2
Bakeries and tortilla products
3118
338.8
0.4
2.1
-3.3
-3.7
-1.3
2.5
Other food products
3119
228.1
0.7
8.7
-3.5
-4.2
4.9
9.5
Beverages and tobacco products
312
281.8
1.6
1.1
0.3
-1.3
1.4
2.7
Beverages
3121
270.4
3.1
0.0
1.5
-1.5
1.5
3.1
Tobacco
3122
11.4
-7.3
2.1
-2.6
5.1
-0.6
-5.4
Textile mills
313
101.0
0.2
-2.3
-9.5
-9.7
-11.6
-2.1
Fiber, yarn, and thread mills
3131
23.6
7.5
-8.9
-10.0
-16.3
-18.0
-2.0
Fabric mills
3132
48.7
3.1
-2.3
-7.0
-9.7
-9.1
0.7
Textile and fabric finishing mills
3133
28.7
-11.0
2.5
-13.4
-2.7
-11.2
-8.7
Textile product mills
314
116.6
-5.1
1.1
-9.0
-4.2
-8.0
-4.0
Textile furnishings mills
3141
50.2
-6.9
-1.6
-8.8
-2.0
-10.2
-8.3
Other textile product mills
3149
66.4
-3.7
3.6
-9.4
-5.9
-6.1
-0.2
Apparel
315
105.4
10.1
-10.7
-7.1
-15.6
-17.0
-1.6
Apparel knitting mills
3151
8.4
3.0
-8.5
-11.4
-14.0
-18.9
-5.8
Cut and sew apparel
3152
84.5
12.7
-11.6
-6.6
-17.1
-17.4
-0.3
Accessories and other apparel
3159
12.5
-1.5
-5.6
-7.2
-5.8
-12.4
-7.0
Leather and allied products
316
30.4
3.0
-7.9
0.3
-2.6
-7.6
-5.1
Leather and hide tanning and finishing
3161
4.8
1.6
-7.5
2.1
0.4
-5.5
-5.9
Footwear
3162
11.5
14.5
-12.2
0.6
-12.2
-11.7
0.5
Other leather products
3169
14.1
-7.4
-2.2
-1.3
6.6
-3.5
-9.4
Paper
322
357.0
-2.1
0.7
-2.8
-0.7
-2.1
-1.4
Pulp, paper, and paperboard mills
3221
92.6
1.6
0.8
-3.8
-5.3
-3.0
2.5
Converted paper products
3222
264.4
-3.5
0.7
-2.4
1.2
-1.7
-2.9
Printing and related support activities
323
397.8
2.0
0.8
-10.9
-12.7
-10.2
2.8
Printing and related support activities
3231
397.8
2.0
0.8
-10.9
-12.7
-10.2
2.8
Petroleum and coal products
324
106.5
0.8
13.1
-15.5
-16.2
-4.4
14.1
Petroleum and coal products
3241
106.5
0.8
13.1
-15.5
-16.2
-4.4
14.1
Chemicals
325
860.9
-1.2
6.5
-3.9
-2.8
2.4
5.3
Basic chemicals
3251
150.1
-2.2
1.6
-4.9
-2.8
-3.4
-0.6
Resin, rubber, and artificial fibers
3252
91.8
-1.6
-2.9
-2.1
-0.5
-5.0
-4.5
Agricultural chemicals
3253
37.2
5.3
8.2
-2.8
-7.8
5.1
14.0
Pharmaceuticals and medicines
3254
318.7
-3.1
10.4
-2.6
0.5
7.6
7.0
Paints, coatings, and adhesives
3255
64.2
2.9
10.7
-11.4
-13.8
-1.8
13.9
Soaps, cleaning compounds, and toiletries
3256
119.9
-3.5
6.3
-2.1
1.4
4.1
2.6
Other chemical products and preparations
3259
79.0
5.0
2.4
-6.3
-10.8
-4.1
7.4
Plastics and rubber products
326
715.5
-0.4
3.9
-7.1
-6.8
-3.5
3.6
Plastics products
3261
581.5
1.7
3.4
-5.0
-6.6
-1.7
5.2
Rubber products
3262
134.0
-10.1
7.9
-16.9
-7.6
-10.4
-3.0
Durable Manufacturing
Wood products
321
413.2
5.1
2.0
-2.4
-7.1
-0.4
7.1
Sawmills and wood preservation
3211
96.9
12.2
-2.7
0.8
-10.2
-1.8
9.2
Plywood and engineered wood products
3212
78.7
-1.2
1.9
-2.3
-1.1
-0.5
0.6
Other wood products
3219
237.6
3.5
4.8
-4.5
-7.7
0.2
8.5
Nonmetallic mineral products
327
410.8
-0.2
2.8
-5.6
-5.4
-3.0
2.6
Clay products and refractories
3271
42.0
1.1
-7.9
-0.8
-1.9
-8.7
-6.9
Glass and glass products
3272
80.0
0.6
-3.1
-5.1
-5.7
-8.0
-2.5
Cement and concrete products
3273
194.5
-1.9
9.6
-7.9
-6.1
1.0
7.5
Lime and gypsum products
3274
15.3
2.2
-1.2
-3.7
-5.7
-4.9
0.9
Other nonmetallic mineral products
3279
79.0
2.4
-1.3
-3.1
-5.4
-4.4
1.0
Primary metals
331
357.4
-2.2
3.0
-13.2
-11.3
-10.6
0.8
Iron and steel mills and ferroalloys
3311
83.2
-2.3
2.8
-12.8
-10.8
-10.3
0.5
Steel products from purchased steel
3312
55.4
-4.1
7.3
-15.1
-11.5
-9.0
2.8
Alumina and aluminum production
3313
56.9
2.2
1.1
-8.7
-10.7
-7.7
3.3
Other nonferrous metal production
3314
58.2
-6.5
11.4
-16.7
-10.9
-7.2
4.1
Foundries
3315
103.7
-0.6
-3.2
-12.7
-12.2
-15.5
-3.8
Fabricated metal products
332
1,418.7
-1.4
3.5
-9.3
-8.0
-6.1
2.0
Forging and stamping
3321
91.1
-4.5
0.4
-12.2
-8.0
-11.8
-4.2
Cutlery and handtools
3322
35.0
4.7
-4.1
-3.3
-7.7
-7.3
0.5
Architectural and structural metals
3323
389.2
-1.6
3.3
-5.2
-3.6
-2.1
1.6
Boilers, tanks, and shipping containers
3324
90.2
6.9
-6.8
0.5
-6.0
-6.3
-0.3
Hardware
3325
24.6
-4.9
8.5
-10.3
-5.7
-2.7
3.2
Spring and wire products
3326
40.7
0.3
-1.5
-8.2
-8.5
-9.6
-1.3
Machine shops and threaded products
3327
345.7
-9.2
15.2
-19.8
-11.7
-7.6
4.6
Coating, engraving, and heat treating metals
3328
131.8
-2.4
6.7
-14.8
-12.7
-9.1
4.1
Other fabricated metal products
3329
270.4
0.8
1.2
-7.1
-7.8
-5.9
2.0
Machinery
333
1,068.5
-1.7
4.3
-10.3
-8.7
-6.4
2.5
Agriculture, construction, and mining machinery
3331
204.8
-6.2
4.8
-15.5
-9.9
-11.5
-1.8
Industrial machinery
3332
118.3
-2.8
4.2
-2.3
0.5
1.8
1.3
Commercial and service industry machinery
3333
88.0
-0.2
3.9
-8.3
-8.1
-4.8
3.7
HVAC and commercial refrigeration equipment
3334
134.4
0.9
-1.8
-1.4
-2.3
-3.2
-1.0
Metalworking machinery
3335
165.0
-1.2
9.5
-16.7
-15.7
-8.8
8.2
Turbine and power transmission equipment
3336
90.8
10.4
0.2
-9.7
-18.2
-9.5
10.7
Other general purpose machinery
3339
267.2
-4.6
6.4
-11.2
-6.9
-5.6
1.4
Computer and electronic products
334
1,084.4
1.1
2.9
-0.4
-1.5
2.5
4.0
Computer and peripheral equipment
3341
162.2
9.9
8.9
-0.8
-9.7
8.0
19.7
Communications equipment
3342
87.4
-9.5
0.1
-1.7
8.6
-1.6
-9.3
Audio and video equipment
3343
21.9
0.6
-0.4
-3.5
-4.2
-3.9
0.2
Semiconductors and electronic components
3344
376.0
-2.2
0.8
0.3
2.5
1.1
-1.4
Electronic instruments
3345
423.4
3.3
1.8
-0.3
-3.5
1.5
5.1
Magnetic media manufacturing and reproducing
3346
13.5
-2.0
1.6
-3.4
-1.4
-1.9
-0.5
Electrical equipment and appliances
335
382.1
-1.6
3.6
-6.8
-5.3
-3.5
1.9
Electric lighting equipment
3351
42.6
-5.0
1.0
-7.5
-2.6
-6.6
-4.1
Household appliances
3352
60.1
3.5
-1.1
1.7
-1.8
0.5
2.4
Electrical equipment
3353
135.3
-3.1
5.2
-9.6
-6.6
-4.8
1.9
Other electrical equipment and components
3359
144.1
-2.6
6.1
-8.4
-6.0
-2.7
3.4
Transportation equipment
336
1,591.6
-4.4
9.1
-15.8
-11.9
-8.2
4.2
Motor vehicles
3361
187.5
7.0
13.4
-18.4
-23.7
-7.4
21.4
Motor vehicle bodies and trailers
3362
151.7
-0.2
-2.3
-8.4
-8.1
-10.5
-2.5
Motor vehicle parts
3363
540.4
-9.9
5.8
-20.1
-11.3
-15.4
-4.7
Aerospace products and parts
3364
513.0
-5.2
10.5
-13.8
-9.0
-4.7
4.8
Railroad rolling stock
3365
23.7
-1.6
-1.8
-2.0
-0.4
-3.7
-3.4
Ship and boat building
3366
139.1
6.6
4.8
-7.0
-12.7
-2.5
11.7
Other transportation equipment
3369
36.2
1.5
-1.3
-2.4
-3.8
-3.7
0.1
Furniture and related products
337
378.5
-7.4
10.1
-13.8
-6.9
-5.0
2.0
Household and institutional furniture
3371
241.7
-2.9
5.3
-8.7
-5.9
-3.9
2.2
Office furniture and fixtures
3372
102.9
-14.7
20.8
-23.2
-9.9
-7.2
3.0
Other furniture related products
3379
33.9
-2.3
1.8
-6.1
-3.9
-4.4
-0.5
Miscellaneous manufacturing
339
640.2
1.3
2.2
-7.7
-8.8
-5.6
3.5
Medical equipment and supplies
3391
325.3
-1.0
3.4
-8.0
-7.1
-4.9
2.4
Other miscellaneous manufacturing
3399
314.9
3.8
0.4
-7.2
-10.6
-6.9
4.2
Table 2. Long run labor productivity, unit labor costs, and related data
United States Department of Labor
