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, Historical, technical USDL 95-39 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, FEBRUARY 7, 1995 PRODUCTIVITY AND COSTS Preliminary Fourth-Quarter Measures and Annual Averages, 1994 The Bureau of Labor Statistics of the U.S. Department of Labor today reported preliminary fourth-quarter seasonally-adjusted annual rates of change in productivityjas measured by output per hour of all personsjand changes for the full year 1994. In the fourth quarter, moderate productivity increases in business and nonfarm business resulted from strong growth in both output and hours worked. Percent changes in business and nonfarm business productivity were: Fourth Annual averages quarter 1993-1994 Business sector............ 1.7 2.3 Nonfarm business sector.... 1.8 2.2 For the year 1994, productivity improved from 1993 as output in both sectors grew at the highest rates in 10 years. Unit labor costs increased 0.9 percent in 1994 in both sectors, the smallest annual increase since 1964. Fourth-quarter productivity and related measures are summarized in table A and appear in detail in tables 1 through 5. Annual data are summarized in table B. In the manufacturing sector, increases in productivity were: Fourth Annual averages quarter 1993-1994 Manufacturing sector....... 2.8 4.9 Durable goods ........... 3.8 5.9 Nondurable goods ........ 1.2 3.3 Manufacturing productivity grew at a 2.8 percent annual rate in the fourth quarter as both output and hours increased at the fastest rates since the fourth quarter of 1987. The growth rates in productivity, output, and hours in durable goods manufacturing were more rapid than in nondurables (table A). On an annual basis, manufacturing productivity increased 4.9 percent, the largest yearly gain since 1987. 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: Preliminary fourth-quarter 1994 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 1.7 5.4 3.7 3.4 1.1 1.7 Nonfarm business 1.8 5.4 3.6 3.7 1.4 1.9 Manufacturing 2.8 7.7 4.8 3.7 1.4 0.8 Durable 3.8 10.4 6.3 4.4 2.1 0.5 Nondurable 1.2 3.9 2.7 2.3 0.0 1.0 Percent change from same quarter a year ago Business 1.5 4.8 3.2 3.3 0.6 1.8 Nonfarm business 1.4 4.5 3.1 3.4 0.7 2.0 Manufacturing 4.6 7.0 2.3 2.3 -0.4 -2.2 Durable 5.3 8.7 3.2 2.3 -0.4 -2.9 Nondurable 3.4 4.6 1.1 2.1 -0.5 -1.3 THIRD-TO-FOURTH QUARTER CHANGES, 1994 Business Productivity increased at a 1.7 percent annual rate during the fourth quarter of 1994 in the business sector, as output growth accelerated to a 5.4 percent annual rate and hours of all persons engaged in the sector increased 3.7 percent. In the third quarter, productivity had risen 3.7 percent, as output grew 4.5 percent and hours edged up 0.8 percent (seasonally adjusted annual rates). Hourly compensation increased at a 3.4 percent annual rate in the fourth quarter of 1994, following 3.6 percent growth 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, increased at a 1.7 percent annual rate during the fourth quarter, compared with a 0.2 percent decrease one quarter earlier. Real hourly compensation, which takes into account changes in the Consumer Price Index for All Urban Consumers (CPI-U), rose at a 1.1 percent annual rate for persons in the business sector. This measure had been unchanged during the third quarter. The implicit price deflator for business output, which reflects changes in unit labor costs and unit nonlabor payments, increased at an annual rate of 1.0 percent in the fourth quarter. In the third quarter, prices of the goods and services which comprise business output had increased at a 2.0 percent annual rate. 3 Nonfarm business In the nonfarm business sector, productivity gained 1.8 percent in the fourth quarter, as output rose 5.4 percent and hours of all personsjemployees, proprietors, and unpaid family workersjrose 3.6 percent (seasonally adjusted annual rates). The change in hours resulted from a 2.8 percent increase in employment and a 0.8 percent increase in the average work week. During the third quarter, nonfarm productivity had increased at a 3.2 percent annual rate, as output grew 4.3 percent and hours increased 1.1 percent (table 2). Hourly compensation rose 3.7 percent in the fourth quarter, and real hourly compensation increased 1.4 percent when the increase in the CPI-U was taken into account. During the third quarter, hourly compensation had increased by 3.1 percent, and real hourly compensation had declined 0.4 percent. Unit labor costs increased 1.9 percent in the fourth quarter, compared with a 0.1 percent decrease during the third quarter. The implicit price deflator for nonfarm business output rose 0.7 percent in the fourth quarter, compared with a 2.3 percent increase one quarter earlier. Manufacturing Manufacturing productivity grew at a 2.8 percent seasonally adjusted annual rate in the fourth quarter of 1994, compared with a 3.5 percent increase in the third quarter (table 3). Output rose 7.7 percent in the fourth quarter, and hours of all persons jumped 4.8 percent. The increases in output and hours were the largest since the fourth quarter of 1987, when output rose 7.9 percent and hours increased 5.1 percent. Both durable and nondurable goods industries experienced productivity increases in the fourth quarter, but the increases in durable manufacturing productivity and output were substantially greater (tables 4 and 5). Hourly compensation of all manufacturing workers increased 3.7 percent during the fourth quarter, resulting in a gain of 1.4 percent when the increase in consumer prices was taken into account. Unit labor costs increased at a 0.8 percent annual rate in the fourth quarter of 1994, following four consecutive quarters in which they had declined. ANNUAL AVERAGE CHANGES, 1993-1994 Business Business productivity increased 2.3 percent when the annual average for 1994 is compared with the annual average for 1993 (table B). In 1993, productivity had grown 1.5 percent. Output grew 5.3 percent in 1994, the largest gain since 1984 when output jumped 8.2 percent. Hours of all persons engaged in the business sector increased 2.9 percent, the most since 1988. Hourly compensation increased 3.2 percent in 1994, less than in any year since 1955. Compensation per hour had increased 3.6 percent in 1993. Real hourly compensation increased 0.6 percent in both 1993 and 1994. The slow growth of hourly compensation combined with moderate productivity growth to produce an increase of only 0.9 percent in unit labor costs during 1994. This was the smallest annual rise since 1964, when unit labor costs increased by the same amount. 4 Table B. Annual changes in productivity and related measures, 1985-1994 Measure 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 Business: Productivity.... 1.4 2.1 1.0 1.0 -0.7 0.7 1.3 3.0 1.5 2.3 Output.......... 3.6 2.8 4.1 4.3 1.7 0.7 -1.0 2.7 3.8 5.3 Hours........... 2.1 0.6 3.0 3.3 2.5 0.1 -2.3 -0.3 2.2 2.9 Hourly comp..... 4.5 5.0 3.6 4.4 3.5 5.7 4.8 5.1 3.6 3.2 Real hourly comp 0.9 3.1 -0.1 0.2 -1.3 0.3 0.6 2.0 0.6 0.6 Unit labor costs 3.0 2.8 2.5 3.4 4.3 5.0 3.5 2.1 2.0 0.9 Nonfarm Business: Productivity.... 0.8 2.0 0.8 1.0 -0.9 0.4 1.5 2.7 1.5 2.2 Output.......... 3.4 2.8 4.1 4.4 1.7 0.6 -1.0 2.4 4.1 5.2 Hours........... 2.5 0.8 3.2 3.4 2.6 0.2 -2.4 -0.3 2.5 2.9 Hourly comp..... 4.1 5.0 3.5 4.2 3.3 5.5 5.0 5.1 3.3 3.1 Real hourly comp. 0.6 3.1 -0.2 0.1 -1.4 0.1 0.8 2.0 0.2 0.6 Unit labor costs 3.3 2.9 2.6 3.3 4.3 5.1 3.5 2.4 1.7 0.9 Manufacturing: Productivity.... 3.2 2.6 6.5 2.3 0.6 1.8 2.3 2.1 3.2 4.9 Output.......... 2.4 1.1 7.2 5.2 0.9 -0.4 -1.9 1.5 4.1 6.2 Hours........... -0.7 -1.5 0.7 2.9 0.4 -2.2 -4.1 -0.6 0.8 1.2 Hourly comp..... 5.0 4.1 2.3 3.9 3.9 5.3 5.3 4.2 3.3 2.8 Real hourly comp. 1.4 2.2 -1.3 -0.2 -0.9 -0.1 1.1 1.2 0.3 0.3 Unit labor costs 1.8 1.5 -3.9 1.6 3.3 3.5 3.0 2.1 0.1 -1.9 Nonfarm business Productivity increased 2.2 percent in the nonfarm business sector during 1994, as output rose 5.2 percent and hours of all persons increased 2.9 percent. The increase in output in 1994 was the largest annual gain in the series since 1984 (8.2 percent). In 1993, productivity had risen 1.5 percent, as output and hours rose 4.1 percent and 2.5 percent, respectively. Hourly compensation rose 3.1 percent in 1994; this was the smallest gain since 1949 (3.0 percent) and followed a 3.3 percent increase in 1993. Real hourly compensation increased 0.6 percent in 1994, compared with 0.2 percent in 1993. Unit labor costs in the nonfarm business sector grew only 0.9 percent in 1994, reflecting 3.1 percent growth in hourly compensation and 2.2 percent growth in productivity. In 1993, unit labor costs had increased 1.7 percent, as similar hourly compensation gains were accompanied by slower productivity growth. Manufacturing Manufacturing productivity grew 4.9 percent in 1994, as output rose 6.2 percent and hours of all persons increased 1.2 percent. The increases in both productivity and output in 1994 were the largest since 1987, when productivity increased 6.5 percent and output increased 7.2 percent (table B). During 1993, productivity had risen 3.2 percent, output grew 4.1 percent, and hours increased 0.8 percent. 5 Hourly compensation of manufacturing workers increased 2.8 percent during 1994, or a gain of 0.3 percent when the increase in consumer prices is taken into account. Unit labor costs fell 1.9 percent in 1994, the first such decline since 1987, reflecting both faster productivity growth and a smaller gain in compensation per hour than in 1993. Both durable and nondurable goods industries experienced productivity increases in 1994. The 5.9 percent gain among durable goods producers was based on output growth of 8.0 percent, the biggest yearly gain since 1984. In nondurable goods industries, the productivity growth rate of 3.3 percent reflected 3.5 percent output growth and a 0.2 percent increase in hours (tables 4 and 5). Revised measures: Nonfinancial Corporations Productivity and cost measures for the third quarter for nonfinancial corporations, which were revised to incorporate the most recent information, were much the same as the preliminary results announced on Dec. 7, 1994. Productivity grew at an annual rate of 2.0 percent compared with the preliminary estimate of 1.9 percent (table C). Table C. Nonfinancial corporations: Previous and revised productivity and related measures Quarterly percent change at seasonally adjusted annual rate Real Hourly hourly Unit Implicit Produc- compen- compen-labor Unit price Period tivity Output Hours sation sation costs profits deflator Third quarter 1994: Previous 1.9 4.2 2.3 3.1 -0.4 1.2 1.3 1.6 Current 2.0 4.2 2.2 3.3 -0.3 1.2 0.3 1.7 Next release date The next issue of Productivity and Costs is scheduled for release at 10:00 AM EST, Wednesday, March 8, 1995, and will contain revised fourth-quarter and annual measures for business, nonfarm business, and manufacturing. 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) corresponding 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. If you have questions or comments regarding the LABSTAT system on the Internet, address e-mail to labstat.helpdesk@bls.gov. LABOR NEWS At Your Fingertips You can now get this and other U.S. Department of Labor news releases quickly and easily through LABOR NEWS ja free electronic bulletin board providing a variety of labor-related information and available to anyone with a computer, a modem, and communications soft- ware. To register directly, load the following parameters into your computer: PHONE number: (202) 219-4784 BAUD speed: 300, 1200, 2400, 9600, 14,400 PARITY: none DATA bits: 8 STOP bit: 1 After you have made a connection to LABOR NEWS, follow the registration prompts. Users must pay any toll for long-distance calls. 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 ufactures. Nondurables include: Food and and employment data is the BLS Current kindred products, tobacco products, Employment Statistics (CES) program, textile mill products, apparel products, which provides monthly survey data on paper and allied products, printing and total employment and average weekly publishing, chemicals and chemical hours of production and nonsupervisory products, petroleum refining and related workers in nonagricultural estab- industries, rubber and plastic products, lishments. Jobs rather than persons are leather and leather products. counted. Weekly hours are adjusted to Manufacturing accounted for about 19 the hours at work definition using the percent of GDP in 1992. Quarterly BLS Hours at Work survey, conducted for manufacturing output measures are based this purpose. on the index of industrial production Data from the BLS Current prepared monthly by the Board of Population Survey (CPS) are used for Governors of the Federal Reserve System farm labor; in the nonfarm sector, the adjusted by BLS to annual manufacturing National Income and Product Accounts output levels (gross product (NIPA) prepared by the Bureau of Eco- originating) from the National Income nomic Analysis of the Department of Com- and Product Accounts prepared by the merce and the CPS are used to measure Bureau of Economic Analysis of the U.S. labor input for government enterprises, Department of Commerce. proprietors and unpaid family workers. Nonfinancial corporate output is equal to GDP in constant 1987 dollars, Output: Business sector output is equal less the output of nonprofit to gross domestic product (GDP) in institutions, output of paid employees constant 1987 dollars, less general of private households, rental value of government, output of nonprofit owner-occupied dwellings, unincorporated institutions, output of paid employees business, the output of corporations of private households, rental value of engaged in banking, finance, stock and owner-occupied dwellings, and the sta- commodity trading, and credit and tistical discrepancy in computing the insurance agencies, and the statistical NIPA. Corresponding exclusions are also discrepancy in computing the NIPA. made in labor inputs. Business output Nonfinancial corporations accounted for was about 78 percent of GDP in 1992. about 56 percent of GDP in 1992. Nonfarm business, which also excludes farming, was about 77 percent of GDP in Productivity: These productivity mea- 1992. sures describe the relationship between Total manufacturing measures are real output and the labor time involved computed by summing series prepared for in its production. They show the changes the durable and nondurable goods from period to period in the amount of sectors. Durables include the following goods and services produced per hour. 2-digit SIC industries: Primary metal Although these measures relate output to industries; fabricated metal products; hours at work of all persons engaged in nonelectrical machinery; industrial and a sector, they do not measure the commercial machinery and computer specific contribution of labor, capital, equipment; electronic and other or any other factor of production. electrical equipment; transportation Rather, they reflect the joint effects equipment; instruments; lumber and of many influences, including changes in lumber products; furniture and fixtures; technology; capital investment; level of stone, clay, and glass and concrete output; utilization of capacity, energy, products; and miscellaneous man- and materials; the organization of 8 production; managerial skill; and the characteristics and effort of the work force. Information in this release will be made available to sensory-impaired individuals upon request. Voice phone: 202-523-1221; TDD phone: 202-523-3936; TDD message referral phone number: 1- 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 114.5 133.7 116.8 152.2 105.9 133.0 148.4 138.0 II 114.8 134.4 117.1 153.7 106.1 133.9 148.8 138.8 III 115.9 136.1 117.4 156.0 106.8 134.7 145.8 138.3 IV 116.8 137.9 118.1 157.7 107.1 135.1 150.2 140.1 ANNUAL 115.5 135.5 117.4 154.9 106.6 134.2 148.3 138.8 1993 I 116.2 138.1 118.9 158.8 107.0 136.6 149.5 140.8 II 116.4 139.6 119.9 160.0 107.0 137.5 149.6 141.4 III 117.3 140.9 120.1 161.2 107.3 137.4 150.4 141.6 IV 119.0 143.9 121.0 162.1 107.2 136.3 153.8 142.1 ANNUAL 117.2 140.6 120.0 160.5 107.2 136.9 150.9 141.5 1994 I 119.8 145.8 121.7 164.6 108.3 137.4 153.2 142.6 II 119.2 147.2 123.5 164.7 107.6 138.2 155.3 143.8 III r120.3 r148.8 123.7 r166.2 r107.6 r138.1 r157.6 144.5 IV 120.8 150.8 124.8 167.5 107.9 138.7 157.5 144.9 ANNUAL 119.9 148.1 123.5 165.6 107.8 138.1 155.9 144.0 --------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1992 I 5.5 3.4 -1.9 5.8 3.1 0.3 9.1 3.3 II 1.1 2.2 1.1 4.0 0.7 2.8 1.0 2.2 III 3.7 4.9 1.2 6.1 3.0 2.4 -7.7 -1.3 IV 3.2 5.6 2.3 4.4 1.2 1.2 12.7 5.1 ANNUAL 3.0 2.7 -0.3 5.1 2.0 2.1 2.3 2.2 1993 I -1.9 0.6 2.5 2.6 -0.4 4.6 -2.0 2.3 II 0.6 4.2 3.6 3.1 0.0 2.5 0.3 1.7 III 3.3 4.0 0.7 3.0 1.1 -0.3 2.1 0.6 IV 5.7 8.6 2.8 2.4 -0.6 -3.1 9.4 1.2 ANNUAL 1.5 3.8 2.2 3.6 0.6 2.0 1.7 1.9 1994 I 2.9 5.5 2.5 6.3 4.1 3.3 -1.7 1.5 II -2.0 3.7 5.9 0.2 -2.5 2.3 5.8 3.5 III r3.7 r4.5 r0.8 r3.6 r0.0 r-0.2 r5.9 r2.0 IV 1.7 5.4 3.7 3.4 1.1 1.7 -0.3 1.0 ANNUAL 2.3 5.3 2.9 3.2 0.6 0.9 3.3 1.7 --------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1992 I 2.8 1.7 -1.1 4.9 2.0 2.1 3.2 2.5 II 2.5 2.0 -0.6 4.9 1.7 2.3 2.5 2.4 III 3.1 3.0 -0.2 5.3 2.2 2.1 0.3 1.5 IV 3.4 4.0 0.6 5.1 2.0 1.7 3.5 2.3 ANNUAL 3.0 2.7 -0.3 5.1 2.0 2.1 2.3 2.2 1993 I 1.5 3.3 1.8 4.3 1.1 2.8 0.7 2.0 II 1.4 3.8 2.4 4.1 0.9 2.7 0.6 1.9 III 1.3 3.6 2.3 3.3 0.5 2.0 3.1 2.4 IV 1.9 4.3 2.4 2.8 0.0 0.9 2.4 1.4 ANNUAL 1.5 3.8 2.2 3.6 0.6 2.0 1.7 1.9 1994 I 3.1 5.6 2.4 3.7 1.1 0.6 2.5 1.2 II 2.4 5.4 3.0 3.0 0.5 0.5 3.8 1.7 III 2.5 r5.6 3.0 3.1 0.2 0.6 r4.8 2.0 IV 1.5 4.8 3.2 3.3 0.6 1.8 2.4 2.0 ANNUAL 2.3 5.3 2.9 3.2 0.6 0.9 3.3 1.7 --------------------------------------------------------------------------------------------------------- See footnotes following table 6. February 7, 1995 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 112.6 133.6 118.6 150.9 105.0 134.0 149.5 139.0 II 113.1 134.4 118.8 152.6 105.3 134.9 150.4 139.9 III 113.9 135.9 119.3 154.7 106.0 135.9 147.0 139.5 IV 115.0 137.9 120.0 156.4 106.3 136.1 152.1 141.2 ANNUAL 113.7 135.5 119.2 153.7 105.7 135.2 149.7 139.9 1993 I 114.4 138.3 120.9 157.2 106.0 137.5 151.5 142.0 II 114.5 139.9 122.1 158.2 105.8 138.1 151.8 142.5 III 115.6 141.5 122.4 159.3 106.1 137.7 153.5 142.8 IV 117.0 144.3 123.3 160.2 105.9 136.9 156.1 143.1 ANNUAL 115.4 141.0 122.2 158.7 106.0 137.5 153.3 142.6 1994 I 117.9 146.1 124.0 162.6 106.9 137.9 155.3 143.5 II 117.2 147.3 125.6 162.9 106.4 138.9 158.1 145.1 III r118.2 148.8 126.0 164.1 r106.3 138.9 r160.8 145.9 IV 118.7 150.8 127.1 165.6 106.6 139.5 160.2 146.2 ANNUAL 117.9 148.3 125.8 163.7 106.6 138.8 158.6 145.2 --------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1992 I 4.2 2.4 -1.8 5.7 3.0 1.4 6.5 3.2 II 1.9 2.5 0.6 4.6 1.2 2.6 2.3 2.5 III 2.8 4.4 1.6 5.8 2.6 2.9 -8.6 -1.2 IV 3.8 6.2 2.3 4.5 1.2 0.6 14.4 5.1 ANNUAL 2.7 2.4 -0.3 5.1 2.0 2.4 2.2 2.3 1993 I -2.0 1.0 3.0 2.1 -0.9 4.1 -1.4 2.2 II 0.4 4.7 4.3 2.4 -0.7 2.0 0.8 1.6 III 4.0 4.9 0.9 2.8 0.9 -1.2 4.4 0.7 IV 4.9 7.9 2.9 2.4 -0.6 -2.4 7.1 0.8 ANNUAL 1.5 4.1 2.5 3.3 0.2 1.7 2.4 1.9 1994 I 2.9 5.2 2.3 6.1 3.9 3.1 -2.1 1.2 II -2.1 3.2 5.5 0.7 -2.0 2.9 7.5 4.5 III r3.2 r4.3 r1.1 r3.1 r-0.4 r-0.1 r6.9 r2.3 IV 1.8 5.4 3.6 3.7 1.4 1.9 -1.3 0.7 ANNUAL 2.2 5.2 2.9 3.1 0.6 0.9 3.5 1.8 --------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1992 I 2.4 1.4 -1.0 4.9 2.0 2.4 2.8 2.5 II 2.4 1.8 -0.6 5.0 1.8 2.5 2.8 2.6 III 2.7 2.6 -0.1 5.3 2.1 2.6 0.0 1.7 IV 3.2 3.8 0.7 5.1 2.0 1.9 3.3 2.4 ANNUAL 2.7 2.4 -0.3 5.1 2.0 2.4 2.2 2.3 1993 I 1.6 3.5 1.9 4.2 1.0 2.6 1.3 2.1 II 1.2 4.0 2.8 3.7 0.5 2.4 0.9 1.9 III 1.5 4.2 2.6 2.9 0.1 1.4 4.4 2.4 IV 1.8 4.6 2.7 2.4 -0.3 0.6 2.7 1.3 ANNUAL 1.5 4.1 2.5 3.3 0.2 1.7 2.4 1.9 1994 I 3.0 5.7 2.6 3.4 0.9 0.3 2.5 1.1 II 2.4 5.3 2.8 3.0 0.5 0.6 4.2 1.8 III r2.2 r5.2 2.9 r3.1 0.2 0.9 r4.8 2.2 IV 1.4 4.5 3.1 3.4 0.7 2.0 2.6 2.2 ANNUAL 2.2 5.2 2.9 3.1 0.6 0.9 3.5 1.8 --------------------------------------------------------------------------------------------------------- See footnotes following table 6. February 7, 1995 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 126.4 128.6 101.8 145.2 101.0 114.9 II 126.8 129.6 102.2 146.8 101.3 115.8 III 127.6 130.3 102.1 148.4 101.6 116.3 IV 128.8 132.0 102.5 150.7 102.4 117.0 ANNUAL 127.5 130.1 102.0 147.9 101.7 116.0 1993 I 130.0 134.0 103.1 150.0 101.1 115.4 II 130.7 134.4 102.8 152.1 101.8 116.4 III 131.7 135.4 102.8 153.6 102.3 116.6 IV 133.6 137.7 103.0 155.1 102.5 116.1 ANNUAL 131.6 135.4 102.9 152.8 102.0 116.1 1994 I 135.7 140.2 103.3 156.6 103.0 115.4 II 137.6 142.7 103.7 156.1 101.9 113.4 III 138.8 r144.6 104.2 157.2 101.8 113.3 IV 139.8 147.4 105.4 158.6 102.2 113.5 ANNUAL 138.0 143.7 104.2 157.1 102.3 113.9 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1992 I 0.6 -1.6 -2.1 1.5 -1.1 0.9 II 1.3 3.0 1.7 4.5 1.2 3.2 III 2.6 2.1 -0.5 4.3 1.2 1.6 IV 3.8 5.3 1.4 6.5 3.2 2.6 ANNUAL 2.1 1.5 -0.6 4.2 1.2 2.1 1993 I 3.7 6.3 2.6 -2.0 -4.9 -5.5 II 2.4 1.3 -1.1 6.0 2.8 3.5 III 3.0 3.0 0.0 3.9 2.0 0.9 IV 6.0 6.9 0.9 3.9 0.9 -2.0 ANNUAL 3.2 4.1 0.8 3.3 0.3 0.1 1994 I 6.4 7.4 1.0 4.0 1.8 -2.3 II 5.6 7.2 1.5 -1.4 -4.1 -6.7 III r3.5 r5.6 2.0 3.0 -0.5 r-0.5 IV 2.8 7.7 4.8 3.7 1.4 0.8 ANNUAL 4.9 6.2 1.2 2.8 0.3 -1.9 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1992 I 2.6 1.3 -1.2 4.0 1.1 1.4 II 1.9 1.7 -0.1 4.0 0.9 2.1 III 1.4 0.8 -0.6 4.2 1.1 2.8 IV 2.1 2.2 0.1 4.2 1.1 2.1 ANNUAL 2.1 1.5 -0.6 4.2 1.2 2.1 1993 I 2.9 4.2 1.3 3.3 0.1 0.4 II 3.1 3.7 0.6 3.6 0.5 0.5 III 3.2 4.0 0.7 3.5 0.7 0.3 IV 3.8 4.4 0.6 2.9 0.2 -0.8 ANNUAL 3.2 4.1 0.8 3.3 0.3 0.1 1994 I 4.4 4.6 0.2 4.4 1.9 0.0 II 5.3 6.1 0.8 2.6 0.1 -2.5 III 5.4 6.8 1.3 r2.4 -0.5 -2.9 IV 4.6 7.0 2.3 2.3 -0.4 -2.2 ANNUAL 4.9 6.2 1.2 2.8 0.3 -1.9 -------------------------------------------------------------------------------------------------- See footnotes following table 6. February 7, 1995 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 135.3 134.5 99.4 143.1 99.5 105.7 II 136.4 135.7 99.5 144.9 100.0 106.2 III 137.5 136.5 99.3 146.4 100.2 106.5 IV 139.2 138.7 99.7 149.2 101.4 107.2 ANNUAL 137.3 136.3 99.3 146.1 100.5 106.4 1993 I 141.0 141.6 100.4 147.4 99.4 104.5 II 142.3 142.2 99.9 149.4 100.0 105.0 III 143.4 143.5 100.1 150.7 100.3 105.1 IV 146.6 147.4 100.5 152.3 100.7 103.9 ANNUAL 143.5 143.7 100.1 150.1 100.2 104.6 1994 I 149.3 150.8 101.0 154.0 101.2 103.1 II 151.2 153.4 101.4 153.1 100.0 101.2 III r153.0 r156.3 102.2 154.1 99.8 100.7 IV 154.4 160.2 103.8 155.8 100.3 100.9 ANNUAL 151.9 155.2 102.1 154.2 100.4 101.5 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1992 I -1.0 -3.2 -2.2 0.9 -1.7 1.9 II 3.3 3.7 0.4 5.2 1.8 1.8 III 3.1 2.2 -0.8 4.1 1.0 1.1 IV 5.1 6.8 1.6 8.1 4.7 2.8 ANNUAL 3.0 1.5 -1.5 4.5 1.5 1.4 1993 I 5.5 8.5 2.8 -4.8 -7.6 -9.8 II 3.7 1.8 -1.9 5.6 2.5 1.9 III 3.0 3.9 0.8 3.4 1.5 0.3 IV 9.4 11.2 1.7 4.4 1.3 -4.6 ANNUAL 4.5 5.4 0.8 2.8 -0.2 -1.7 1994 I 7.3 9.5 2.0 4.4 2.3 -2.7 II 5.3 7.1 1.7 -2.3 -4.9 -7.2 III r4.8 r7.8 2.9 r2.7 -0.8 r-1.9 IV 3.8 10.4 6.3 4.4 2.1 0.5 ANNUAL 5.9 8.0 2.0 2.7 0.2 -3.0 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1992 I 3.5 1.3 -2.1 4.0 1.1 0.5 II 3.3 1.8 -1.4 4.4 1.3 1.1 III 2.2 0.7 -1.5 4.6 1.5 2.3 IV 2.6 2.3 -0.2 4.5 1.4 1.9 ANNUAL 3.0 1.5 -1.5 4.5 1.5 1.4 1993 I 4.2 5.3 1.0 3.0 -0.1 -1.2 II 4.3 4.8 0.4 3.1 0.0 -1.1 III 4.3 5.2 0.8 2.9 0.1 -1.3 IV 5.4 6.3 0.8 2.1 -0.7 -3.2 ANNUAL 4.5 5.4 0.8 2.8 -0.2 -1.7 1994 I 5.8 6.5 0.7 4.4 1.9 -1.3 II 6.2 7.9 1.6 2.4 0.0 -3.6 III 6.7 r8.9 2.1 2.3 -0.6 r-4.1 IV 5.3 8.7 3.2 2.3 -0.4 -2.9 ANNUAL 5.9 8.0 2.0 2.7 0.2 -3.0 -------------------------------------------------------------------------------------------------- See footnotes following table 6. February 7, 1995 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 115.4 121.5 105.3 149.5 104.0 129.6 II 115.0 122.1 106.2 151.0 104.2 131.3 III 115.6 122.7 106.1 152.7 104.6 132.1 IV 116.2 123.7 106.4 154.2 104.8 132.7 ANNUAL 115.6 122.5 105.9 152.0 104.5 131.4 1993 I 116.5 124.7 107.0 155.2 104.6 133.1 II 116.7 124.9 107.0 157.7 105.5 135.1 III 117.6 125.5 106.7 159.5 106.2 135.6 IV 118.0 125.8 106.6 160.7 106.2 136.2 ANNUAL 117.2 125.2 106.8 158.3 105.7 135.0 1994 I 119.4 127.2 106.5 161.9 106.5 135.6 II 121.2 129.5 106.9 161.9 105.7 133.5 III r121.7 130.3 107.1 163.2 105.7 134.1 IV 122.1 131.6 107.8 164.1 105.7 134.5 ANNUAL 121.1 129.7 107.1 162.8 106.0 134.4 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1992 I 2.7 0.6 -2.0 2.4 -0.3 -0.3 II -1.4 2.0 3.4 3.9 0.5 5.3 III 2.1 1.9 -0.2 4.6 1.5 2.5 IV 2.2 3.3 1.1 4.1 0.8 1.9 ANNUAL 0.9 1.5 0.6 4.0 0.9 3.1 1993 I 1.2 3.5 2.3 2.4 -0.6 1.2 II 0.7 0.6 -0.1 6.6 3.4 5.9 III 3.0 1.8 -1.1 4.6 2.7 1.6 IV 1.4 1.1 -0.3 3.1 0.1 1.7 ANNUAL 1.4 2.3 0.9 4.1 1.1 2.7 1994 I 5.0 4.6 -0.4 3.1 0.9 -1.9 II 6.1 7.4 1.3 -0.1 -2.8 -5.8 III r1.6 r2.5 r0.9 3.3 -0.3 r1.7 IV 1.2 3.9 2.7 2.3 0.0 1.0 ANNUAL 3.3 3.5 0.2 2.8 0.3 -0.5 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1992 I 1.3 1.3 0.0 4.1 1.2 2.8 II 0.0 1.6 1.6 3.7 0.6 3.7 III 0.3 1.0 0.7 3.8 0.7 3.5 IV 1.4 2.0 0.6 3.8 0.7 2.3 ANNUAL 0.9 1.5 0.6 4.0 0.9 3.1 1993 I 1.0 2.7 1.7 3.8 0.6 2.7 II 1.5 2.3 0.8 4.4 1.3 2.9 III 1.7 2.3 0.6 4.4 1.6 2.7 IV 1.5 1.8 0.2 4.2 1.4 2.6 ANNUAL 1.4 2.3 0.9 4.1 1.1 2.7 1994 I 2.5 2.0 -0.4 4.3 1.8 1.8 II 3.8 3.7 -0.1 2.7 0.2 -1.1 III r3.5 r3.9 0.4 2.3 -0.5 -1.1 IV 3.4 4.6 1.1 2.1 -0.5 -1.3 ANNUAL 3.3 3.5 0.2 2.8 0.3 -0.5 -------------------------------------------------------------------------------------------------- See footnotes following table 6. February 7, 1995 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 116.8 137.3 117.6 147.7 102.7 126.5 119.3 124.5 170.4 127.3 II 117.6 138.8 118.1 149.4 103.1 127.1 118.0 124.5 175.6 127.6 III 119.1 140.7 118.1 151.5 103.7 127.2 119.0 124.9 171.0 127.7 IV 120.6 143.4 118.9 153.1 104.0 127.0 115.7 123.8 191.2 127.9 ANNUAL 118.5 140.0 118.2 150.4 103.5 126.9 118.0 124.4 177.2 127.7 1993 I 120.0 143.3 119.4 154.0 103.8 128.3 116.8 125.0 183.7 128.7 II 121.3 145.9 120.3 154.5 103.4 127.3 115.8 124.1 199.4 128.7 III 122.7 148.1 120.7 155.4 103.5 126.7 115.8 123.6 202.5 128.5 IV 124.1 150.9 121.6 155.9 103.1 125.7 114.8 122.6 220.9 128.7 ANNUAL 122.0 147.0 120.5 154.9 103.5 127.0 115.8 123.8 201.9 128.6 1994 I 125.1 153.0 122.3 157.9 103.8 126.2 116.6 123.5 218.2 129.4 II 124.6 154.8 124.2 157.9 103.1 126.7 115.2 123.4 228.7 129.9 III 125.2 156.5 124.9 159.1 103.0 r127.1 r116.2 r124.0 r228.8 r130.5 --------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1992 I 1.3 0.9 -0.4 3.9 1.2 2.6 -2.6 1.2 14.8 2.2 II 2.9 4.7 1.7 4.7 1.3 1.7 -4.4 0.0 12.8 1.0 III 5.2 5.5 0.3 5.7 2.5 0.4 3.5 1.2 -10.0 0.2 IV 5.1 8.0 2.7 4.3 1.0 -0.8 -10.4 -3.5 56.4 0.7 ANNUAL 3.0 3.2 0.1 4.6 1.6 1.6 -2.1 0.5 7.6 1.1 1993 I -1.9 -0.3 1.7 2.3 -0.7 4.4 3.6 4.2 -14.9 2.3 II 4.5 7.5 2.8 1.4 -1.7 -3.0 -3.3 -3.1 38.9 0.2 III 4.5 6.0 1.5 2.2 0.4 -2.1 0.0 -1.6 6.5 -0.8 IV 4.7 7.8 3.0 1.4 -1.5 -3.1 -3.4 -3.2 41.5 0.6 ANNUAL 3.0 5.0 2.0 3.0 0.0 0.0 -1.9 -0.5 14.0 0.8 1994 I 3.3 5.8 2.5 5.1 3.0 1.8 6.6 3.1 -4.9 2.2 II -1.4 4.8 6.4 -0.1 -2.7 1.4 -4.8 -0.3 20.7 1.8 III r2.0 4.2 r2.2 r3.3 r-0.3 1.2 r3.5 r1.8 r0.3 r1.7 --------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1992 I 2.4 1.7 -0.7 4.3 1.4 1.8 -1.2 1.0 5.2 1.3 II 2.6 2.7 0.2 4.5 1.3 1.9 -2.1 0.8 5.0 1.1 III 3.3 3.5 0.3 4.9 1.7 1.6 -1.5 0.7 3.7 0.9 IV 3.6 4.7 1.1 4.6 1.5 1.0 -3.6 -0.3 16.2 1.1 ANNUAL 3.0 3.2 0.1 4.6 1.6 1.6 -2.1 0.5 7.6 1.1 1993 I 2.8 4.4 1.6 4.2 1.0 1.4 -2.1 0.5 7.8 1.1 II 3.2 5.1 1.9 3.4 0.3 0.2 -1.8 -0.3 13.6 0.8 III 3.0 5.2 2.2 2.6 -0.3 -0.4 -2.7 -1.0 18.5 0.6 IV 2.9 5.2 2.2 1.8 -0.9 -1.0 -0.8 -1.0 15.5 0.6 ANNUAL 3.0 5.0 2.0 3.0 0.0 0.0 -1.9 -0.5 14.0 0.8 1994 I 4.2 6.8 2.4 2.5 0.0 -1.6 -0.1 -1.2 18.8 0.5 II 2.7 6.1 3.3 2.2 -0.3 -0.5 -0.5 -0.5 14.7 0.9 III 2.1 5.7 3.5 2.4 r-0.4 0.3 r0.4 0.3 r13.0 r1.6 --------------------------------------------------------------------------------------------------------- See footnotes following table 6. February 7, 1995 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) 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. (7) Total unit cost is the sum of labor and nonlabor costs. (8) Unit profits include corporate profits with inventory valuation and capital consumption adjustments.