Labor productivity - defined as output per hour - rose in 44 percent of the 52 detailed service-providing and mining industries studied in 2009, the U.S. Bureau of Labor Statistics reported. This was down from 56 percent in 2008 and from 65 percent in 2007. Unit labor costs, which reflect the total labor costs required to produce a unit of output, declined in 33 percent of the industries in 2009, compared to 31 percent in 2008.

Output and hours also rose in fewer industries in 2009 than in the previous two years. Output rose in only 6 of the 52 service-providing and mining industries in 2009, while hours increased in 7. In over one quarter of the industries studied, output and hours both declined at double-digit rates.

In 2009, output per hour increased in 21 of the 47 detailed service-providing industries and in two of the five detailed mining industries studied. Although productivity changes varied widely among the service-providing and mining industries, almost all of the increases in productivity involved declines in hours. Of the 52 detailed industries studied, only medical laboratories produced productivity gains accompanied by an increase in hours.

Declining hours resulted in productivity increases in some industries where output was falling, as well as in industries where output was expanding. Productivity increased the most in photofinishing and in wireless telecommunications carriers. Output of wireless telecommunications carriers increased while output in photofinishing fell; however both industries posted double-digit declines in hours. Productivity declined the most in the truck, trailer and RV rental and leasing industry, where hours fell but output fell much more.

Productivity rose in the overall mining sector and in the oil and gas extraction and metal ore mining industries in 2009, but declined in coal mining, in nonmetallic mineral mining and quarrying, and in support activities for mining. Hours fell in all of the mining industries.

Among the 20 largest (by employment) service-providing and mining industries, drinking places (alcoholic beverages) recorded the largest productivity increase, as hours fell more than twice as fast as output. Support activities for mining, where both output and hours fell by double digits, recorded the largest productivity decline.

Unit labor costs rose in 31 of 47 service-providing industries and in 3 of 5 mining industries in 2009. Unit labor costs declined the most in photofinishing and in oil and gas extraction.

The industry productivity performance in 2009 contrasts with the more positive industry productivity performance over the longer term. Between 1987 and 2009, labor productivity increased in 83 percent of the detailed service-providing and mining industries and unit labor costs declined in 19 percent of the industries.