TEXT Table 1. Business sector: Productivity, hourly compensation, unit labor costs, Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs, Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs, Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs, Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs, Table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor costs, unit profits, Appendix table 1. Appendix table 2. Appendix table 3. Historical, technical USDL 94-115 information: (202) 606-5606 TRANSMISSION OF THIS Current data: (202) 606-7828MATERIAL IS EMBARGOED Media contact: (202) 606-5902 UNTIL 10:00 A.M. EST TUESDAY, MARCH 8, 1994 PRODUCTIVITY AND COSTS Fourth-Quarter and Annual Averages, 1993 The Bureau of Labor Statistics of the U.S. Department of Labor today reported revised fourth-quarter seasonally-adjusted annual rates of productivity changejas measured by output per hour of all personsjand revised annual changes for the full year 1993. In the fourth quarter, productivity increased briskly in business, nonfarm business, and manufacturing with the strongest gains recorded in durable goods manufacturing (table A). Unit labor costs declined in all sectors except nondurable manufacturing in the fourth quarter, partly reflecting the strong gains in productivity. Fourth-quarter measures are summarized in table A and appear in detail in tables 1 through 5. The changes in business and nonfarm business productivity were: Fourth Annual averages quarter 1992-1993 Business sector............ 6.9 1.8 Nonfarm business sector.... 6.1 1.7 On an annual basis, productivity in business and nonfarm business rose moderately in 1993. The pace of output growth picked up, increasing more rapidly in 1993 than in 1992 in both sectors, and hours of labor input increased for the first time since 1990. Growth in manufacturing productivity in 1993 reflected faster output growth than during 1992. A small decline in hours of labor input extended the downward trend which began in 1990. The changes in manufacturing were: Fourth Annual averages quarter 1992-1993 Manufacturing.............. 7.2 5.1 Durable goods manufacturing 12.3 7.5 Nondurable goods manufacturing 0.1 1.8 Output measures for business and nonfarm business are based on measures of gross domestic product prepared by the Bureau of Economic Analysis of the U.S. Department of Commerce. Output measures for manufacturing reflect independent indexes of industrial production prepared by the Board of Governors of the Federal Reserve System. See Technical Notes (page 7) for further information on data sources. 2 Table A. Productivity and costs: Revised fourth-quarter 1993 measures (Seasonally adjusted annual rates) Real Hourly hourly Unit Produc- compen-compen-labor Sector tivity Output Hours sation sation costs Percent change from preceding quarter Business 6.9 9.3 2.2 2.9 -0.1 -3.8 Nonfarm business 6.1 8.6 2.3 2.8 -0.1 -3.1 Manufacturing 7.2 8.6 1.3 3.1 0.1 -3.8 Durable 12.3 14.4 1.8 3.8 0.8 -7.6 Nondurable 0.1 0.6 0.5 2.0 -0.9 1.9 Percent change from same quarter a year ago Business 2.1 4.1 2.0 3.1 0.4 1.0 Nonfarm business 1.9 4.3 2.3 2.8 0.1 0.9 Manufacturing 5.2 5.1 -0.1 2.2 -0.5 -2.8 Durable 7.8 7.7 -0.1 1.8 -0.9 -5.5 Nondurable 1.5 1.5 0.0 2.8 0.1 1.3 THIRD-TO-FOURTH QUARTER CHANGES, 1993 Business Productivity increased strongly during the fourth quarter of 1993 in the business sector. The 6.9 percent gain reflected output growth at a 9.3 percent annual rate while hours of all persons engaged in the sector increased 2.2 percent (seasonally adjusted). The increase in productivity was the largest since 1983 (when a 7.5 percent increase was recorded in the second quarter), and the gain in output the largest since 1984 (when it rose 11.5 percent in the first quarter). During the third quarter of 1993, business productivity had increased 3.3 percent; output grew 3.2 percent, and hours fell 0.1 percent (table 1). Hourly compensation increased at a 2.9 percent annual rate during the fourth quarter of 1993, compared with a 3.9 percent increase during the third quarter. This measure includes wages and salaries, supplements, employer contributions to employee-benefit plans, and taxes. Unit labor costs, which reflect changes in hourly compensation and productivity, decreased at a 3.8 percent annual rate during the fourth quarter, compared with a 0.5 percent increase one quarter earlier. The decline in unit labor costs partly reflects the faster gains in productivity in the fourth quarter. It was the first decrease in this series since the first quarter of 1988 and the largest since 1955. Real hourly compensation, which takes into account changes in the Consumer Price Index for All Urban Consumers (CPI-U), showed a slight 0.1 percent decline in the fourth quarter of 1993 for persons in the business sector, compared with a 2.0 percent gain in the third quarter. The implicit price deflator for business output, which reflects changes in unit labor costs and unit nonlabor payments, increased at a 1.0 percent annual rate in 3 the fourth quarter. During the third quarter, prices of the goods and services which comprise business output had increased at a 1.1 percent rate. Nonfarm business In the nonfarm business sector, productivity gained 6.1 percent in the fourth quarter. Output jumped 8.6 percent (the largest gain since a 10.3 percent gain in the first quarter of 1984), and hours of all personsjemployees, proprietors, and unpaid family workersjrose 2.3 percent. The change in hours resulted from a 1.5 percent increase in employment and a 0.7 percent increase in the average workweek. During the third quarter, nonfarm productivity had increased 4.0 percent as output grew 4.1 percent and hours edged up 0.1 percent (table 2). Hourly compensation rose 2.8 percent in the fourth quarter, but real compensation was off a slight 0.1 percent when the increase in the CPI-U was taken into account. During the third quarter, hourly compensation had increased by 3.7 percent, and real hourly compensation by 1.8 percent. Unit labor costs fell 3.1 percent in the fourth quarter, compared with a 0.4 percent decrease during the third quarter. The was the first 2-quarter decline in these costs since 1962. The implicit price deflator for nonfarm business output rose 0.5 percent in the fourth quarter, compared with a 1.1 percent increase one quarter earlier. Manufacturing Manufacturing productivity rose at a 7.2 percent seasonally adjusted annual rate in the fourth quarter of 1993, compared with a 3.0 percent increase in the third quarter. Output rose a robust 8.6 percent in the fourth quarter, and hours of all persons increased 1.3 percent. The increases in productivity and output were the largest since the second quarter of 1987, when productivity rose 10.7 percent and output increased 10.6 percent. The fourth-quarter 1993 increase in hours followed declines in the second and third quarters (table 3). The increase in manufacturing productivity was virtually confined to the durable goods sector; only a small gain occurred in nondurables (tables 4 and 5). Hourly compensation of all manufacturing workers increased 3.1 percent during the fourth quarter, but edged up a scant 0.1 percent when the increase in consumer prices was taken into account. Unit labor costs fell at a 3.8 percent annual rate in the fourth quarter of 1993, compared with a 0.3 percent increase during the third quarter. ANNUAL AVERAGE CHANGES, 1992-1993 Business When the annual averages for 1993 and 1992 are compared, business productivity increased 1.8 percent. In 1992, productivity had grown 3.3 percent. Output grew 3.6 percent in 1993, and hours of all persons engaged in the sector increased 1.8 percent (table B). Hourly compensation increased 3.8 percent in 1993, compared with a 5.0 percent increase during 1992. Real hourly compensation increased 0.8 percent in 1993, compared with a 2.0 percent rise in 1992. 4 Unit labor costs increased 2.0 percent during 1993, compared with a 1.7 percent increase a year earlier. These costs grew more in 1993 than in 1992, despite the lower increases in hourly compensation, because productivity grew less. Nonfarm business Productivity increased 1.7 percent in the nonfarm business sector during 1993, as output rose 3.8 percent and hours of all persons increased 2.1 percent. The increase in labor input in 1993 was the first annual gain in the series since 1990. In 1992, productivity had risen 3.1 percent, as output rose 2.7 percent and hours fell 0.4 percent. Hourly compensation rose 3.6 percent in 1993, compared with a 5.1 percent increase in 1992. Real hourly compensation increased 0.6 percent, down from a 2.0 percent rise in 1992. Unit labor costs in the nonfarm business sector grew 1.8 percent in 1993 and 2.0 percent in 1992, reflecting a slowing of both productivity growth and hourly compensation gains from 1992 to 1993. Manufacturing Manufacturing productivity grew 5.1 percent in 1993, as output rose 4.7 percent and hours of all persons declined 0.3 percent. During 1992, productivity rose 4.2 percent; output rose 3.1 percent, and hours decreased 1.1 percent. The increase in manufacturing productivity in 1993 was the largest since 1987, the output gain the largest since 1988, and the drop in hours the smallest of four consecutive declines. Hourly compensation of manufacturing workers increased 2.8 percent during 1993, but was down 0.2 percent when the increase in consumer prices was taken into account. Unit labor costs fell 2.2 percent in 1993, the first such decline since 1987, reflecting both faster productivity growth and a smaller gain in compensation per hour than in 1992. Both durable and nondurable goods industries experienced productivity increases in 1993. The very large gain among durable goods producers reflected strong output growth and a decline in hours; however, in nondurable goods industries, both output and hours growth were modest in 1993 (tables 4 and 5). Revised measures Productivity and cost measures for the fourth quarter and full year 1993 for business, nonfarm business, and manufacturing, which were revised to incorporate the most recent information, were somewhat different from the preliminary results announced on February 8. Owing to upward revisions to the underlying output series prepared by the Bureau of Economic Analysis of the Department of Commerce, business and nonfarm business productivity grew more rapidly when more complete information was used. For example, nonfarm productivity grew at an annual rate of 6.1 percent in the fourth quarter, compared with the previously-announced growth rate of 4.2 percent (table B). In manufacturing, revised indexes of industrial production prepared by the Board of Governors of the Federal Reserve Bank underlie BLS manufacturing output measures. (For details on the revision, see Federal Reserve Statistical Release G.17 (419) Supplement, February 4.) These changes are reflected in revised manufacturing productivity and related measures. Appendix tables 1-3 show the 5 effects of the revisions for 1991. Prior to 1991, the productivity effects are negligible. Measures of real hourly compensation for all sectors reflect the Consumer Price Index for All Urban Consumers used in their computation. Revisions in the CPI, due to updated and modified seasonal adjustment factors and procedures, were announced February 17 (USDL 94-86). Measures for 1989 forward were affected. Table B. Previous and revised productivity and related measures: Fourth-quarter and annual averages, 1993 (Seasonally adjusted annual rates) Real Hourly hourly Unit Produc- compen-compen-labor Sector tivity Output Hours sation sation costs Percent change, third to fourth quarter 1993 Business: Previous 4.8 7.1 2.2 2.9 0.0 -1.8 Current 6.9 9.3 2.2 2.9 -0.1 -3.8 Nonfarm business: Previous 4.2 6.6 2.3 2.9 0.0 -1.2 Current 6.1 8.6 2.3 2.8 -0.1 -3.1 Manufacturing: Previous 7.8 9.2 1.2 3.0 0.1 -4.5 Current 7.2 8.6 1.3 3.1 0.1 -3.8 Percent change, 1992 - 1993 Business: Previous 1.7 3.5 1.8 3.8 0.8 2.1 Current 1.8 3.6 1.8 3.8 0.8 2.0 Nonfarm business: Previous 1.6 3.7 2.1 3.6 0.6 1.9 Current 1.7 3.8 2.1 3.6 0.6 1.8 Manufacturing: Previous 5.3 4.9 -0.3 2.8 -0.2 -2.4 Current 5.1 4.7 -0.3 2.8 -0.2 -2.2 Next release date The next release of Productivity and Costs is scheduled for 10:00 AM EDT, Thursday, May 5, 1994, and will contain preliminary first-quarter measures for business, nonfarm business, and manufacturing. Fourth-quarter and 1993 annual measures for nonfinancial corporations also will be included. 6 LABSTAT now on INTERNET! BLS Data Now Available on the INTERNET LABSTAT, the Bureau of Labor Statistics public database, provides current and historical data for many surveys as well as numerous press releases. LABSTAT on the Internet is composed of individual databases (in flat file format) corre- sponding to each of the surveys. Internet users should use Anonymous FTP to access BLS data: stats.bls.gov. Non-Internet users should use the limited dial-in service through a Bulletin Board Service to access BLS data; phone number (202) 606-7060. The major sector labor and multifactor productivity database containing productivity and costs measures is identified by the two-character survey name MP. For each news release published by the BLS, the two most current issues are stored in the */news.release directory. 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For more information call (202) 219-8831, or FAX (202) 219-8699, Monday through Friday, 9 a.m. to 4 p.m. ET. 7 TECHNICAL NOTES Labor Input: The primary source of hours paper and allied products, printing and and employment data is the BLS Current publishing, chemicals and chemical Employment Statistics (CES) program, products, petroleum refining and related which provides monthly survey data on industries, rubber and plastic products, total employment and average weekly and leather and leather products. hours of production and nonsupervisory Manufacturing accounted for about 19 workers in nonagricultural estab- percent of GDP in 1992. Quarterly lishments. Jobs rather than persons are manufacturing output measures are based counted. Weekly hours are adjusted to on the index of industrial production the hours at work definition using the prepared monthly by the Board of BLS Hours at Work survey, conducted for Governors of the Federal Reserve System this purpose. adjusted by BLS to annual manufacturing Data from the BLS Current output levels (gross product Population Survey (CPS) are used for originating) from the National Income farm labor; in the nonfarm sector, the and Product Accounts prepared by the National Income and Product Accounts Bureau of Economic Analysis of the U.S. (NIPA) prepared by the Bureau of Eco- Department of Commerce. nomic Analysis of the Department of Com- Nonfinancial corporate output is merce and the CPS are used to measure equal to GDP in constant 1987 dollars, labor input for government enterprises, less the output of nonprofit proprietors, and unpaid family workers. institutions, output of paid employees of private households, rental value of Output: Business output is equal to owner-occupied dwellings, the output of gross domestic product (GDP) in constant unincorporated business, corporations 1987 dollars, less general government, engaged in banking, finance, stock and output of nonprofit institutions, output commodity trading, and credit and of paid employees of private households, insurance agencies, and the statistical rental value of owner-occupied discrepancy in computing the NIPA. dwellings, and the statistical Nonfinancial corporations accounted for discrepancy in computing the NIPA. Cor- about 56 percent of GDP in 1992. responding exclusions are also made in labor inputs. Business output was about Productivity: These productivity mea- 78 percent of GDP in 1992. Nonfarm sures describe the relationship between business, which also excludes farming, real output and the labor time involved was about 77 percent of GDP in 1992. in its production. They show the changes Total manufacturing measures are from period to period in the amount of computed by summing series prepared for goods and services produced per hour. the durable and nondurable goods Although these measures relate output to sectors. Durables include the following hours at work of all persons engaged in 2-digit SIC industries: Primary metal a sector, they do not measure the industries; fabricated metal products; specific contribution of labor, capital, nonelectrical machinery; industrial and or any other factor of production. commercial machinery and computer Rather, they reflect the joint effects equipment; electronic and other of many influences, including changes in electrical equipment; transportation technology; capital investment; level of equipment; instruments; lumber and output; utilization of capacity, energy, lumber products; furniture and fixtures; and materials; the organization of stone, clay, glass, and concrete production; managerial skill; and the products; and miscellaneous man- characteristics and effort of the work ufactures. Nondurables include: Food and force. kindred products, tobacco products, textile mill products, apparel products, 8 Information in this release will be 202-606-STAT; TDD phone: 202-606-5897; made available to sensory-impaired TDD message referral phone number: 1- individuals upon request. Voice phone: 800-326-2577. Table 1. Business sector: Productivity, hourly compensation, unit labor costs, and prices, seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit Unit non- Implicit and hour of of all tion per tion per labor labor pay- price quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4) --------------------------------------------------------------------------------------------------------- Indexes 1982=100 1992 I 114.1 133.3 116.8 152.2 r105.9 133.4 148.5 138.3 II 114.8 134.5 117.1 153.7 r106.1 133.9 149.9 139.1 III 116.0 136.0 117.2 156.1 106.9 134.5 147.3 138.7 IV 117.1 137.9 117.7 157.8 r107.2 134.8 152.6 140.6 ANNUAL 115.5 135.4 117.3 154.9 106.5 134.1 149.6 139.2 1993 I 116.6 138.0 118.3 159.1 r107.3 136.4 152.1 141.6 II 116.6 139.3 119.5 160.1 r107.1 137.3 153.1 142.5 III 117.6 140.4 119.4 161.6 r107.6 137.4 153.9 142.8 IV r119.6 r143.5 120.1 r162.7 r107.6 r136.1 r157.6 r143.2 ANNUAL r117.6 r140.3 119.4 160.8 107.4 r136.8 r154.2 142.5 --------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1992 I 4.7 2.9 -1.8 5.7 r2.9 0.9 7.8 3.3 II 2.5 3.4 1.0 4.1 r0.7 1.6 3.9 2.4 III 4.2 4.6 0.4 6.2 r3.0 1.9 -6.7 -1.2 IV 3.8 5.6 1.8 4.6 r1.3 0.7 15.2 5.6 ANNUAL 3.3 2.9 -0.4 5.0 2.0 1.7 3.4 2.3 1993 I -1.6 0.5 2.1 3.3 r0.2 5.0 -1.4 2.7 II 0.0 3.8 3.8 2.5 r-0.6 2.5 2.6 2.6 III 3.3 3.2 -0.1 3.9 r2.0 0.5 2.1 1.1 IV r6.9 r9.3 2.2 2.9 r-0.1 r-3.8 r10.2 r1.0 ANNUAL r1.8 r3.6 1.8 3.8 0.8 r2.0 r3.1 2.4 --------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1992 I 2.9 1.8 -1.1 5.0 2.1 2.1 3.6 2.6 II 2.9 2.3 -0.6 4.8 1.7 1.9 3.4 2.4 III 3.8 3.4 -0.4 5.3 2.1 1.4 1.7 1.5 IV 3.8 4.1 0.3 5.1 2.0 1.3 4.7 2.5 ANNUAL 3.3 2.9 -0.4 5.0 2.0 1.7 3.4 2.3 1993 I 2.2 3.5 1.3 4.5 1.3 2.3 2.4 2.3 II 1.6 3.6 2.0 4.1 1.0 2.5 2.1 2.4 III 1.3 3.2 1.9 3.6 r0.7 2.2 4.5 3.0 IV r2.1 r4.1 2.0 3.1 0.4 r1.0 r3.3 r1.8 ANNUAL r1.8 r3.6 1.8 3.8 0.8 r2.0 r3.1 2.4 --------------------------------------------------------------------------------------------------------- See footnotes following table 6. March 8, 1994 r=revised Source: Bureau of Labor Statistics Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs, and prices, seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit Unit non- Implicit and hour of of all tion per tion per labor labor pay- price quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator(4) --------------------------------------------------------------------------------------------------------- Indexes 1982=100 1992 I 112.4 133.3 118.7 150.9 r104.9 134.3 149.8 139.3 II 113.1 134.4 118.8 152.6 r105.3 134.9 151.5 140.2 III 114.1 135.9 119.0 154.8 106.0 135.6 148.7 139.8 IV 115.3 137.9 119.6 156.6 r106.3 135.8 154.4 141.8 ANNUAL 113.7 135.4 119.1 153.7 105.7 135.1 151.1 140.3 1993 I 114.8 138.1 120.3 157.7 r106.3 137.4 153.8 142.7 II 114.7 139.5 121.6 158.4 r106.0 138.2 154.8 143.5 III 115.8 140.9 121.7 159.8 r106.4 138.0 156.3 143.9 IV r117.5 r143.8 122.3 161.0 r106.4 r136.9 r159.1 r144.1 ANNUAL r115.7 r140.6 121.5 159.2 106.3 r137.6 r156.0 143.6 --------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1992 I 3.8 2.1 -1.6 5.6 r2.9 1.7 6.0 3.2 II 2.8 3.3 0.5 4.7 r1.3 1.8 4.5 2.7 III 3.6 4.4 0.8 5.9 r2.7 2.2 -7.2 -1.1 IV 4.2 6.0 1.8 4.6 r1.3 0.4 16.2 5.6 ANNUAL 3.1 2.7 -0.4 5.1 2.0 2.0 3.3 2.4 1993 I -1.8 0.6 2.5 2.9 r-0.2 4.8 -1.6 2.5 II -0.4 4.0 4.4 1.9 r-1.2 2.3 2.8 2.4 III 4.0 4.1 0.1 3.7 r1.8 -0.4 3.8 1.1 IV r6.1 r8.6 2.3 r2.8 r-0.1 r-3.1 r7.5 r0.5 ANNUAL r1.7 r3.8 2.1 3.6 0.6 r1.8 r3.3 2.3 --------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1992 I 2.7 1.6 -1.0 5.0 2.1 2.3 3.4 2.7 II 2.7 2.1 -0.6 4.9 1.8 2.2 3.7 2.7 III 3.4 3.1 -0.3 5.3 2.1 1.8 1.6 1.7 IV 3.6 3.9 0.3 5.2 2.1 1.5 4.5 2.6 ANNUAL 3.1 2.7 -0.4 5.1 2.0 2.0 3.3 2.4 1993 I 2.1 3.6 1.4 4.5 1.3 2.3 2.6 2.4 II 1.3 3.8 2.4 3.8 r0.7 2.4 2.2 2.3 III 1.5 3.7 2.2 3.3 r0.4 1.8 5.1 2.9 IV r1.9 r4.3 2.3 2.8 0.1 r0.9 r3.1 r1.6 ANNUAL r1.7 r3.8 2.1 3.6 0.6 r1.8 r3.3 2.3 --------------------------------------------------------------------------------------------------------- See footnotes following table 6. March 8, 1994 r=revised Source: Bureau of Labor Statistics Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs, seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit and hour of of all tion per tion per labor quarter all persons Output persons hour(1) hour(2) costs -------------------------------------------------------------------------------------------------- Indexes 1982=100 1992 I r127.2 r129.6 101.8 145.4 r101.1 r114.3 II 129.1 131.5 101.9 147.1 101.5 114.0 III r130.1 r131.8 101.3 148.7 r101.8 114.2 IV r132.3 r133.9 101.2 150.8 r102.4 r114.0 ANNUAL r129.8 r131.7 101.5 148.2 101.9 r114.1 1993 I r133.8 r136.0 101.6 149.9 r101.1 r112.1 II r135.7 r137.1 101.0 151.7 r101.5 r111.8 III r136.8 r137.9 100.9 153.0 r101.9 r111.9 IV r139.2 r140.8 101.2 154.1 r101.9 r110.8 ANNUAL r136.4 r138.0 101.1 r152.3 101.7 r111.6 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1992 I r3.0 r1.1 -1.8 1.2 r-1.4 r-1.7 II r5.9 r6.1 0.2 4.9 r1.5 r-1.0 III r3.4 r1.0 -2.4 4.2 r1.1 r0.8 IV r6.8 r6.6 -0.2 5.8 r2.4 r-1.0 ANNUAL r4.2 r3.1 -1.1 4.4 1.3 r0.2 1993 I r4.5 r6.1 1.5 -2.3 r-5.2 r-6.5 II r6.0 r3.5 -2.4 4.9 r1.7 -1.0 III r3.0 2.4 -0.6 3.4 r1.5 0.3 IV r7.2 r8.6 r1.3 r3.1 0.1 r-3.8 ANNUAL r5.1 r4.7 -0.3 2.8 -0.2 r-2.2 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1992 I r3.7 r2.5 -1.2 4.4 1.5 r0.7 II 4.2 3.8 -0.4 4.3 1.2 0.1 III r3.6 r2.3 -1.3 4.2 1.1 r0.6 IV r4.8 r3.7 -1.1 4.0 0.9 r-0.7 ANNUAL r4.2 r3.1 -1.1 4.4 1.3 r0.2 1993 I 5.2 4.9 -0.2 3.1 -0.1 -2.0 II r5.2 r4.3 -0.9 3.1 0.0 r-2.0 III r5.1 r4.6 -0.4 2.9 0.1 r-2.1 IV r5.2 r5.1 -0.1 2.2 -0.5 r-2.8 ANNUAL r5.1 r4.7 -0.3 2.8 -0.2 r-2.2 -------------------------------------------------------------------------------------------------- See footnotes following table 6. March 8, 1994 r=revised Source: Bureau of Labor Statistics Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs, seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit and hour of of all tion per tion per labor quarter all persons Output persons hour(1) hour(2) costs -------------------------------------------------------------------------------------------------- Indexes 1982=100 1992 I r136.9 r136.1 99.5 143.0 r99.5 r104.5 II r139.8 r138.5 99.1 144.9 r100.0 r103.7 III r141.2 r138.8 98.3 146.4 100.3 r103.7 IV r144.7 r142.1 98.2 149.2 101.4 r103.2 ANNUAL r140.8 r138.9 98.7 146.0 100.4 r103.8 1993 I r147.3 r145.2 98.6 147.8 r99.6 r100.4 II r150.2 r146.7 97.7 149.5 r100.0 r99.5 III r151.5 r148.0 97.7 150.6 r100.3 r99.4 IV r156.0 r153.1 98.1 r152.0 100.5 r97.4 ANNUAL r151.3 r148.3 98.0 r150.1 100.2 r99.2 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1992 I r1.3 r-0.3 -1.6 -1.0 r-3.5 r-2.3 II r8.8 r7.2 -1.5 5.4 r2.1 r-3.1 III r4.1 r1.0 -3.0 4.2 r1.1 r0.1 IV r10.2 r9.7 -0.5 7.9 r4.5 r-2.1 ANNUAL r5.6 r3.4 -2.0 4.4 1.4 r-1.1 1993 I r7.4 r9.0 1.5 -3.8 r-6.6 r-10.4 II r8.1 4.4 -3.5 4.6 r1.4 r-3.3 III r3.5 r3.5 -0.1 3.0 r1.1 r-0.5 IV r12.3 r14.4 r1.8 r3.8 r0.8 r-7.6 ANNUAL r7.5 r6.7 -0.7 r2.8 -0.2 r-4.4 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1992 I r4.9 r2.9 -2.0 4.3 r1.5 r-0.5 II r6.0 r4.2 -1.7 4.5 1.3 r-1.4 III r4.8 r2.4 -2.3 4.3 r1.2 r-0.5 IV r6.0 r4.3 -1.6 4.1 1.0 r-1.9 ANNUAL r5.6 r3.4 -2.0 4.4 1.4 r-1.1 1993 I r7.6 r6.7 -0.9 3.3 r0.2 r-4.0 II r7.4 r6.0 -1.4 3.1 0.0 r-4.0 III r7.3 r6.6 -0.6 2.8 r0.0 r-4.2 IV r7.8 r7.7 -0.1 r1.8 r-0.9 r-5.5 ANNUAL r7.5 r6.7 -0.7 r2.8 -0.2 r-4.4 -------------------------------------------------------------------------------------------------- See footnotes following table 6. March 8, 1994 r=revised Source: Bureau of Labor Statistics Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs, seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit and hour of of all tion per tion per labor quarter all persons Output persons hour(1) hour(2) costs -------------------------------------------------------------------------------------------------- Indexes 1982=100 1992 I r115.5 r121.5 105.2 150.2 r104.5 r130.1 II r116.1 r122.9 105.9 151.9 r104.8 r130.8 III r116.8 r123.2 105.5 153.5 105.1 r131.4 IV r117.5 r124.0 105.5 154.5 105.0 r131.5 ANNUAL r116.6 r122.9 105.4 152.7 105.0 r131.0 1993 I r117.6 r124.6 106.0 154.5 r104.2 r131.4 II r118.5 r125.3 105.7 156.6 r104.8 r132.1 III r119.2 r125.6 105.4 158.1 r105.3 r132.6 IV r119.2 r125.8 105.5 r158.9 r105.0 r133.3 ANNUAL r118.7 r125.3 105.6 157.1 104.9 r132.4 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1992 I r5.4 r3.1 -2.2 4.7 r2.0 r-0.7 II r2.2 r4.8 2.5 4.4 r1.0 r2.2 III r2.4 r0.9 -1.5 4.4 r1.2 r1.9 IV r2.3 r2.5 0.2 2.7 r-0.5 r0.4 ANNUAL r2.4 r2.6 0.2 4.5 1.5 r2.1 1993 I r0.5 r2.1 1.6 0.0 r-2.9 r-0.5 II r3.1 r2.2 -0.8 5.6 r2.4 r2.4 III r2.3 r0.9 -1.4 3.8 r1.9 r1.5 IV r0.1 r0.6 r0.5 r2.0 r-0.9 r1.9 ANNUAL r1.8 r2.0 0.2 2.9 -0.1 r1.0 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1992 I r2.1 r2.0 -0.1 4.7 1.8 r2.6 II r1.9 r3.3 1.4 4.4 1.3 r2.4 III r2.1 r2.2 0.1 4.4 1.3 r2.3 IV r3.1 r2.8 -0.3 4.0 0.9 r0.9 ANNUAL r2.4 r2.6 0.2 4.5 1.5 r2.1 1993 I r1.9 r2.6 0.7 2.9 -0.3 r1.0 II r2.1 r1.9 -0.2 3.1 0.0 r1.0 III r2.1 r1.9 -0.1 3.0 0.2 r0.9 IV r1.5 r1.5 0.0 r2.8 r0.1 r1.3 ANNUAL r1.8 r2.0 0.2 2.9 -0.1 r1.0 -------------------------------------------------------------------------------------------------- See footnotes following table 6. March 8, 1994 r=revised Source: Bureau of Labor Statistics Table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor costs, unit profits, and prices, seasonally adjusted Output Hourly Real Unit Total Unit Implicit Year per all- compen- hourly Unit non- unit pro- price and employee Employee sation compen- labor labor cost fits deflator quarter hour Output hours (1) sation(2) costs cost(6) (7) (8) (4) --------------------------------------------------------------------------------------------------------- Indexes 1982=100 1992 I 117.3 137.9 117.6 147.9 r102.9 126.1 121.1 124.7 164.1 127.1 II 118.6 140.0 118.0 149.5 r103.2 126.0 120.0 124.3 175.5 127.5 III 120.3 141.9 117.9 151.6 103.8 126.0 121.3 124.7 172.4 127.6 IV 121.7 144.3 118.6 153.0 104.0 125.8 118.3 123.7 195.3 128.1 ANNUAL 119.4 141.0 118.1 150.4 103.4 126.0 120.2 124.3 177.0 127.6 1993 I 120.4 143.3 119.0 153.9 r103.7 127.8 119.6 125.4 182.8 129.0 II 121.6 145.7 119.9 154.8 r103.6 127.3 119.2 125.0 193.9 129.3 III 122.7 147.3 120.1 156.0 r103.9 127.2 119.4 125.0 193.7 129.2 --------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1992 I 2.5 2.1 -0.3 3.9 r1.3 1.5 -2.2 0.4 18.9 1.8 II 4.8 6.4 1.6 4.5 r1.2 -0.2 -3.6 -1.2 30.6 1.1 III 5.8 5.4 -0.4 5.6 r2.5 -0.2 4.6 1.1 -6.8 0.4 IV 4.5 6.9 2.2 4.0 r0.7 -0.5 -9.7 -3.1 64.6 1.5 ANNUAL 4.1 4.1 0.1 4.6 1.5 0.5 -1.4 0.0 14.2 1.0 1993 I -4.0 -2.7 1.3 2.2 r-0.8 6.4 4.3 5.9 -23.1 2.8 II 3.9 7.0 3.0 2.4 r-0.7 -1.5 -1.3 -1.4 26.4 0.8 III 3.7 4.5 0.7 3.3 r1.4 -0.4 0.7 -0.1 -0.3 -0.1 --------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1992 I 3.2 2.4 -0.8 4.5 1.6 1.3 -0.4 0.8 5.8 1.2 II 4.0 4.1 0.1 4.5 1.4 0.6 -1.4 0.0 11.8 0.9 III 4.8 4.8 0.1 4.8 1.7 0.1 -1.0 -0.2 14.6 0.9 IV 4.4 5.2 0.8 4.5 1.4 0.1 -2.8 -0.7 24.2 1.2 ANNUAL 4.1 4.1 0.1 4.6 1.5 0.5 -1.4 0.0 14.2 1.0 1993 I 2.7 3.9 1.2 4.1 r0.9 1.3 -1.3 0.6 11.4 1.5 II 2.5 4.1 1.5 3.5 0.4 1.0 -0.7 0.6 10.5 1.4 III 2.0 3.8 1.8 3.0 r0.1 1.0 -1.6 0.2 12.4 1.3 --------------------------------------------------------------------------------------------------------- See footnotes following table 6. March 8, 1994 r=revised Source: Bureau of Labor Statistics SOURCE: Output data from the Bureau of Economic Analysis, U.S. Department of Commerce, and the Federal Reserve Board. Compensation and hours data from the Bureau of Labor Statistics, U.S. Department of Labor, and the Bureau of Economic Analysis. RELIABILITY: Productivity and cost measures are regularly revised as more complete information becomes available. The measures are first published 30 days after the close of the reference period; revisions appear 30 days later, and third revisions after an additional 60 days. In the business sector, the probability is 0.95 that the third publication (third revision) of a quarterly index of output per hour of all persons will differ from the initial value by between - 1.8 and +2.1 index points. This interval is based on the performance of this measure between the second quarter of 1976 and the third quarter of 1992. Footnotes, Tables 1-6 (1) Wages and salaries of employees plus employers' contributions for social insurance and private benefit plans. Except for nonfinancial corporations, where there are no self-employed, data also include an estimate of wages, salaries, and supplemental payments for the self-employed. (2) Compensation per hour adjusted for changes in the Consumer Price Index for All Urban Consumers. (3) Unit nonlabor payments include profits, capital consumption allowances, interest, rental income of persons, and indirect taxes. (4) Current dollar gross product divided by constant dollar gross product. (5) Quarterly changes: Percent change compounded at annual rate from the original data rather than index numbers. Annual changes: Percent change between annual average levels. (6) Quarterly manufacturing output measures are based on the index of industrial production prepared monthly by the Board of Governors of the Federal Reserve adjusted by BLS to annual manufacturing output levels (gross product originating) from the National Income and Product Accounts prepared by the Bureau of Economic Analysis of the U.S. Department of Commerce. (7) Unit nonlabor cost includes capital consumption allowances, interest, rental income of persons, and indirect taxes. For nonfinancial corporations, rental income of persons is zero by definition. (8) Total unit cost is the sum of labor and nonlabor costs. (9) Unit profits include corporate profits with inventory valuation and capital consumption adjustments. Appendix table 1. Manufacturing sector: Productivity, hourly compensation, and unit labor costs, seasonally adjusted Real Output per Hours Compensa- compensa- Unit Year and hour of of all tion per tion per labor quarter all persons Output persons hour(1) hour(2) costs ----------------------------------------------------------------------------------------------- Indexes 1982=100 1991 I 122.7 126.4 103.0 139.3 99.6 113.5 II 123.8 126.7 102.3 141.1 100.3 113.9 III 125.6 128.8 102.6 142.6 100.7 113.6 IV 126.3 129.2 102.3 145.0 101.5 114.8 ANNUAL 124.5 127.8 102.6 141.9 100.5 114.0 ----------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1991 I -1.3 -9.1 -8.0 4.8 1.6 6.1 II 3.8 0.9 -2.8 5.2 2.9 1.4 III 5.8 7.0 1.1 4.5 1.3 -1.2 IV 2.2 1.2 -1.0 6.7 3.4 4.4 ANNUAL 1.9 -2.2 -4.1 5.4 1.1 3.4 ----------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1991 I 1.2 -3.4 -4.6 5.7 0.3 4.4 II 2.1 -3.3 -5.3 5.4 0.6 3.3 III 2.3 -1.9 -4.1 5.5 1.6 3.1 IV 2.6 -0.2 -2.7 5.3 2.3 2.6 ANNUAL 1.9 -2.2 -4.1 5.4 1.1 3.4 ----------------------------------------------------------------------------------------------- See footnotes following table 6. March 8, 1994 Source: Bureau of Labor Statistics Appendix table 2. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs, seasonally adjusted Real Output per Hours Compensa- compensa- Unit Year and hour of of all tion per tion per labor quarter all persons Output persons hour(1) hour(2) costs ----------------------------------------------------------------------------------------------- Indexes 1982=100 1991 I 130.5 132.3 101.4 137.1 98.1 105.1 II 131.9 133.0 100.8 138.7 98.7 105.2 III 134.7 135.6 100.6 140.4 99.1 104.2 IV 136.4 136.2 99.9 143.4 100.4 105.1 ANNUAL 133.3 134.3 100.7 139.8 99.1 104.9 ----------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1991 I 0.4 -9.6 -9.9 4.7 1.5 4.3 II 4.6 1.9 -2.6 5.0 2.6 0.4 III 8.7 8.1 -0.6 4.9 1.7 -3.5 IV 5.1 1.9 -3.1 8.7 5.2 3.4 ANNUAL 3.6 -2.1 -5.5 5.5 1.3 1.9 ----------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1991 I 3.0 -3.3 -6.2 5.8 0.4 2.7 II 3.4 -3.5 -6.7 5.5 0.6 2.0 III 3.7 -2.1 -5.6 5.7 1.7 1.8 IV 4.7 0.4 -4.1 5.8 2.7 1.1 ANNUAL 3.6 -2.1 -5.5 5.5 1.3 1.9 ----------------------------------------------------------------------------------------------- See footnotes following table 6. March 8, 1994 Source: Bureau of Labor Statistics Appendix table 3. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs, seasonally adjusted Real Output per Hours Compensa- compensa- Unit Year and hour of of all tion per tion per labor quarter all persons Output persons hour(1) hour(2) costs ----------------------------------------------------------------------------------------------- Indexes 1982=100 1991 I 113.1 119.1 105.3 143.5 102.6 126.9 II 113.9 119.0 104.5 145.5 103.5 127.7 III 114.4 120.5 105.3 147.0 103.7 128.5 IV 114.0 120.6 105.8 148.5 104.0 130.3 ANNUAL 113.8 119.8 105.3 146.1 103.5 128.4 ----------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1991 I -3.5 -8.5 -5.2 5.4 2.2 9.3 II 2.8 -0.5 -3.2 5.7 3.3 2.8 III 2.0 5.4 3.4 4.3 1.1 2.3 IV -1.6 0.2 1.8 4.2 0.9 5.9 ANNUAL -0.3 -2.3 -2.0 5.4 1.1 5.7 ----------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1991 I -1.3 -3.5 -2.2 5.9 0.5 7.3 II 0.3 -3.0 -3.3 5.7 0.8 5.4 III 0.4 -1.7 -2.1 5.6 1.6 5.2 IV -0.1 -1.0 -0.9 4.9 1.9 5.0 ANNUAL -0.3 -2.3 -2.0 5.4 1.1 5.7 ----------------------------------------------------------------------------------------------- See footnotes following table 6. March 8, 1994 Source: Bureau of Labor Statistics