Historical, technical USDL 08-0687 information: (202) 691-5618 FOR RELEASE: 10:00 a.m. EDT Media contact: (202) 691-5902 Wednesday, May 21, 2008 Internet: http://www.bls.gov/lpc/home.htm PRODUCTIVITY AND COSTS BY INDUSTRY: SELECTED SERVICE-PROVIDING AND MINING INDUSTRIES, 2006 Labor productivity, defined as output per hour, rose in nearly two- thirds of the measured service-providing and mining industries in 2006, about the same proportion as in 2005. Output rose in 66 percent of the industries, while labor hours increased in 59 percent. Unit labor costs fell in approximately 20 percent of the industries in 2006. //PRIN2 Test 08242022// Over the period 1987 to 2006, labor productivity increased in 86 percent of the industries, significantly more than in 2006. Output grew in 91 percent, while hours increased in 66 percent of the industries. Unit labor costs fell in one quarter of the industries over the longer period. Productivity data for industries in manufacturing, retail trade, wholesale trade, and food services and drinking places are published in separate releases that can be accessed online at http://www.bls.gov/schedule/archives/prin_nr.htm. 2005-2006 change In 2006, output per hour increased in 27 of the 40 detailed service- providing industries and in one of the 4 detailed mining industries studied. (See table 1.) Three industries recorded double-digit productivity growth: video tape and disc rental (NAICS 53223), 22.4 percent; wireless telecommunications carriers (NAICS 5172), 14.1 percent; and truck, trailer, and RV rental and leasing (NAICS 53212), 11.8 percent. Productivity fell the most in amusement and theme parks (NAICS 71311), 11.1 percent, and in refrigerated warehousing and storage (NAICS 49312), 9.2 percent. Labor productivity fell 9.1 percent in the mining sector (NAICS 21) and 7.1 percent in coal mining (NAICS 2121). (Results for the mining sector as a whole are not consistent with changes in the detailed mining industries shown in table 1, because BLS does not publish measures for every detailed mining industry.) Unit labor costs, which reflect hourly compensation and productivity, rose in more than three-fourths of the service-providing industries in 2006, and in all of the mining industries. The biggest increases in unit labor costs occurred in mining, led by a 19.2 percent increase in oil and gas extraction (NAICS 211). Among the service-providing industries, the biggest increase occurred in hair, nail, and skin care services (NAICS 81211), 10.0 percent. Several service-providing industries reduced their unit labor costs in 2006. Wireless telecommunications carriers (NAICS 5172) and video tape and disc rental (NAICS 53223) recorded unit labor cost reductions of 19.8 and 8.2 percent, respectively. These were the two industries where productivity increased the most. Long-term trends Between 1987 and 2006, labor productivity increased in 34 of the 40 detailed service-providing industries and in all of the covered mining industries. Software publishers (NAICS 5112) recorded the greatest productivity growth over the period, 16.2 percent per year on average, followed by wireless telecommunications carriers (NAICS 5172), with growth of 9.7 percent. Labor productivity declined in more of the measured service-providing and mining industries in 2006 than over the longer-term period. Unit labor costs increased in three-quarters of the detailed service- providing industries and in all but one mining industry from 1987 to 2006. Unit labor costs grew most rapidly in oil and gas extraction (NAICS 211), 5.8 percent per year on average. The most rapid declines in unit labor costs occurred in the two industries with the fastest productivity growth, software publishers (NAICS 5112) and wireless telecommunications carriers (NAICS 5172), 9.4 and 6.4 percent, respectively. New Industries Productivity and cost measures for three new industries are presented here for the first time: warehousing and storage (NAICS 493), general warehousing and storage (NAICS 49311), and refrigerated warehousing and storage (NAICS 49312). Measures for these new industries were constructed using standard BLS methods as described in the Technical Note. Output measures for the warehousing and storage industries are based on detailed annual receipts data collected by the U.S. Bureau of the Census, deflated with BLS producer price indexes (PPIs). The labor hours measures reflect data from the BLS Current Employment Statistics (CES) survey and the Current Population Survey (CPS). The labor productivity measures for these industries begin in 1992. Revisions The measures in this news release incorporate current data from the Census Bureauís 2006 Service Annual Survey and other sources. Measures in this release replace the mining and service industry series published in the news release Productivity and Costs by Industry: Selected Service-Providing and Mining Industries, 2005 (released June 8, 2007), and in table 50 of the Monthly Labor Review. All of the measures for 2006 in this release are preliminary and subject to revision. The industries included in this release are classified according to the 2002 NAICS. Industry productivity measures will be classified according to the 2007 NAICS in 2009, with the publication of data for 2007. Additional Information Industry productivity and related indexes and rates of change can be accessed electronically by visiting the Labor Productivity and Costs web site at http://www.bls.gov/lpc/home.htm. Data on industry employment, hours, labor compensation, value of production, and the implicit price deflator for output for these industries are available upon request by calling the Division of Industry Productivity Studies (202-691-5618) or by sending a request by e-mail to email@example.com. While the index numbers and rates of change reported by BLS in this news release are rounded to one decimal place, all industry productivity percent changes are calculated using index numbers to three decimal places. Material in this report is in the public domain and, with appropriate credit, may be used without permission. Information in this report will be made available to sensory-impaired individuals upon request. Voice phone: 202-691- 5618; TDD message referral phone number: 1-800-877-8339.