industries. Over the long term period of 1987 to 2005, labor productivity increased in more industries than in 2005, and unit labor costs declined in fewer.
In 2005, labor productivity increased in 26 of the 38 detailed service-providing industries and fell in 12 industries. Three industries recorded double-digit growth. The biggest increase in output per hour, 34.4 percent, occurred in wireless telecommunications carriers (NAICS 5172). Labor productivity also grew by double digits in travel agencies (NAICS 56151), where output per hour increased 12.4 percent,
and in photofinishing (NAICS 81292), where productivity grew 10.9 percent. The two industries where productivity fell the most, passenger car rental (NAICS 532111) and line-haul railroads (NAICS 482111), recorded declines of 6.6 percent and 5.4 percent, respectively.
Labor productivity fell 10.1 percent in the mining sector (NAICS 21). Among the detailed industries covered, coal mining (NAICS 2121) showed the largest decline, 4.6 percent. Nonmetallic mineral mining and quarrying (NAICS 2123) was the only mining industry with labor productivity growth, 2.2 percent.
Unit labor costs, defined as the total labor costs required to produce a unit of output, rose in the majority of the service-providing industries. The biggest increase, 9.2 percent, occurred in employment placement agencies (NAICS 56131). However, 15 of the 38 detailed service-providing industries reduced unit labor costs. Unit labor costs fell
20.2 percent in wireless telecommunications carriers (NAICS 5172) and 11.5 percent in travel agencies (NAICS 56151), the two industries where productivity increased the most, and 10.7 percent in air transportation (NAICS 481).
Unit labor costs increased rapidly in the mining sector. Growth in unit labor costs was especially strong in the oil and gas extraction industry (NAICS 211), rising 16.9 percent in 2005. Only nonmetallic mineral mining and quarrying (NAICS 2123), the sole mining industry with productivity growth, recorded a reduction in unit labor costs of 2.9
percent.
[b]Long-term trends
Between 1987 and 2005, labor productivity in the detailed service-providing industries increased in 33 industries and fell in 5 industries. Software publishers (NAICS 5112) recorded the fastest productivity growth over the period, 17.0 percent per year on average, followed by wireless telecommunications carriers (NAICS 5172) with average
annual growth of 9.6 percent. Two industries in the transportation sector, used household and office goods moving (NAICS 48421) and couriers and messengers (NAICS 492), had the largest labor productivity declines, falling an average of 1.0 percent per year in both
industries.
Labor productivity in the mining sector (NAICS 21) grew 0.6 percent per year on average from 1987 to 2005. All four detailed mining industries experienced productivity gains. Both coal mining (NAICS 2121) and metal ore mining (NAICS 2122) recorded average annual growth of 3.4 percent, which was the highest among the mining industries.
Unit labor costs among the detailed service-providing industries increased in 28 industries and declined in 10 industries. Funeral homes and funeral services (NAICS 81221) experienced the largest growth, 4.6 percent per year, followed by couriers and messengers (NAICS 492) with average annual growth of 4.4 percent. The most rapid
declines in unit labor costs occurred in the two industries with the fastest productivity growth. Software publishers (NAICS 5112) reduced unit labor costs an average 10.0 percent per year and wireless telecommunications carriers (NAICS 5172) showed a decline of 6.3 percent.
Unit labor costs for the mining sector increased at an average annual rate of 4.0 percent between 1987 and 2005, led by an increase of 5.1 percent in oil and gas extraction (NAICS 211). Only coal mining (NAICS 2121) reduced unit labor costs, which fell an average 0.7 percent per year.
