TEXT Table 1. Business sector: Productivity, hourly compensation, unit labor costs, 10 Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs, 12 Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs, 14 Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs, 16 Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs, 18 Table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor costs, unit profits, 20 21 Historical, technical USDL 95-75 information: (202) 606-5606 TRANSMISSION OF THIS Current data: (202) 606-7828 MATERIAL IS EMBARGOED Media contact: (202) 606-5902 UNTIL 10:00 A.M. EST WEDNESDAY, MARCH 8, 1995 PRODUCTIVITY AND COSTS Fourth-Quarter and Annual Averages, 1994 The Bureau of Labor Statistics of the U.S. Department of Labor today reported revised fourth-quarter seasonally-adjusted annual rates of productivity change--as measured by output per hour of all persons--and revised annual changes for the full year 1994. In the fourth quarter, productivity increased moderately in both the business and nonfarm business sectors. Percent changes in business and nonfarm business productivity were: Fourth Annual averages quarter 1993-1994 Business sector............ 1.7 2.3 Nonfarm business sector.... 1.7 2.2 For the year 1994, productivity increases in both sectors were somewhat greater than in 1993. These productivity improvements, combined with modest increases in hourly compensation, led to the smallest increases in unit labor costs in three decades. Fourth-quarter productivity and related measures are summarized in table A and appear in detail in tables 1 through 5. In the manufacturing sector, increases in productivity were: Fourth Annual averages quarter 1993-1994 Manufacturing.............. 3.1 4.9 Durable goods manufacturing 3.5 5.9 Nondurable goods manufacturing 2.4 3.4 Manufacturing productivity grew at a 3.1 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. - 2 - 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. Table A. Productivity and costs: Revised 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 3.6 3.1 0.8 1.3 Nonfarm business 1.7 5.3 3.5 3.4 1.2 1.7 Manufacturing 3.1 7.7 4.5 3.4 1.1 0.3 Durable 3.5 9.6 5.9 4.1 1.8 0.6 Nondurable 2.4 4.9 2.5 2.0 -0.2 -0.3 Percent change from same quarter a year ago Business 1.6 4.8 3.2 3.3 0.6 1.7 Nonfarm business 1.4 4.5 3.1 3.3 0.7 1.9 Manufacturing 4.6 7.0 2.2 2.2 -0.4 -2.3 Durable 5.2 8.5 3.1 2.2 -0.4 -2.9 Nondurable 3.7 4.8 1.1 2.1 -0.6 -1.6 THIRD-TO-FOURTH QUARTER CHANGES, 1994 Business Business sector productivity increased 1.7 percent in the fourth quarter of 1994. This gain reflected output growth of 5.4 percent and growth in the hours of all persons engaged in the sector of 3.6 percent (seasonally adjusted annual rates). During the third quarter of 1994, business productivity had increased 3.7 percent, output 4.5 percent, and hours 0.8 percent (table 1). Hourly compensation increased at a 3.1 percent rate during the fourth quarter of 1994, compared with a 3.6 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, increased at a 1.3 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 0.8 percent annual rate for persons in the business sector. This measure had been unchanged during the third quarter. - 3 - The implicit price deflator for business output, which reflects changes in unit labor costs and unit nonlabor payments, increased at a 0.6 percent annual rate in the fourth quarter. During the third quarter, prices of the goods and services which comprise business output had increased at a 2.0 percent rate. Nonfarm business In the nonfarm business sector, productivity rose 1.7 percent in the fourth quarter. Output rose 5.3 percent, and hours of all persons--employees, proprietors, and unpaid family workers--rose 3.5 percent. During the third quarter, nonfarm productivity had increased 3.2 percent as output grew 4.3 percent and hours 1.1 percent (table 2). Hourly compensation rose 3.4 percent in the fourth quarter, and real hourly compensation increased 1.2 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 dropped 0.4 percent. Unit labor costs rose 1.7 percent in the fourth quarter, compared with a 0.1 percent decrease during the third quarter. The implicit price deflator for nonfarm business, reflecting the modest increase in unit labor costs and a 1.7 percent fall in unit nonlabor payments, rose only 0.5 percent in the fourth quarter, compared with a 2.3 percent increase one quarter earlier. Manufacturing Manufacturing productivity rose at a 3.1 percent seasonally adjusted annual rate in the fourth quarter of 1994, following an increase of 3.5 percent in the third quarter. Output rose 7.7 percent in the fourth quarter, the fifth consecutive quarter of increases exceeding 5 percent, and hours of all persons increased 4.5 percent. Both durable and nondurable goods industries experienced productivity increases in the fourth quarter, but the increases in durable manufacturing productivity and output were greater (tables 4 and 5). Hourly compensation of all manufacturing workers increased 3.4 percent during the fourth quarter, 1.1 percent when the increase in consumer prices was taken into account. Unit labor costs rose at a 0.3 percent annual rate in the fourth quarter of 1994, after falling in the four previous quarters. ANNUAL AVERAGE CHANGES, 1993-1994 Business In the calendar year 1994, business productivity increased 2.3 percent, up from a 1.5 percent increase in 1993. Output grew 5.3 percent in 1994, and hours of all persons engaged in the sector increased 2.9 percent (table 1). Hourly compensation increased 3.2 percent in 1994 (the smallest annual increase since 2.6 percent in 1955) and 3.6 percent in 1993. Real hourly compensation increased 0.6 percent in both 1994 and 1993. - 4 - Unit labor costs increased 0.8 percent during 1994, compared with a 2.0 percent increase a year earlier. These costs grew less in 1994 than in 1993 because of the smaller increase in hourly compensation and higher productivity growth. 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 per- cent. In 1993, productivity had risen 1.5 percent, reflecting output and hours increases of 4.1 and 2.5 percent, respectively. Hourly compensation rose 3.1 percent in 1994. Although this was the smallest increase in hourly compensation since 1949 (when it rose 3.0 percent), it was just slightly less than the 3.3 percent rise in 1993. Real hourly compensation increased 0.5 percent, up from a 0.2 percent rise in 1993. Unit labor costs in the nonfarm business sector grew only 0.9 percent in 1994 and 1.7 percent in 1993. Manufacturing Manufacturing productivity grew 4.9 percent in 1994, as output rose 6.1 percent and hours of all persons 1.2 percent. During 1993, productivity rose 3.2 percent, output rose 4.1 percent, and hours increased 0.8 percent. The increases in manufacturing productivity and output in 1994 were the largest since 1987. The increase in hours occurred because of increases in both employment and average weekly hours. Although employment growth was modest, it was the first annual increase since 1989. Manufacturing workers' average weekly hours in 1994 were at historically high levels. Hourly compensation of manufacturing workers increased 2.8 percent during 1994, but only 0.2 percent after the increase in consumer prices is taken into account. Unit labor costs fell 2.0 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 large gain among durable goods producers, 5.9 percent, reflected strong output growth and a slight increase in hours. In nondurable goods industries, productivity, output, and hours all grew modestly in 1994 (tables 4 and 5). Revised measures Productivity and cost measures for the fourth quarter and full year 1994 for business, nonfarm business, and manufacturing were revised to incorporate the most recent information, and were somewhat different from the preliminary results announced on February 7. Hourly compensation and the related real hourly compensation and unit labor cost measures were revised down in the business, nonfarm business and manufacturing sectors (table B). - 5 - Measures of real hourly compensation were revised for all sectors to reflect revisions to the Consumer Price Index for All Urban Consumers. These revisions to the CPI, which reflect updated seasonal adjustment factors, were released February 15 (USDL 95-52). Measures for 1990 forward were affected. Table B. Previous and revised productivity and related measures: Fourth-quarter and annual averages, 1994 (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 1994 Business: Previous 1.7 5.4 3.7 3.4 1.1 1.7 Current 1.7 5.4 3.6 3.1 0.8 1.3 Nonfarm business: Previous 1.8 5.4 3.6 3.7 1.4 1.9 Current 1.7 5.3 3.5 3.4 1.2 1.7 Manufacturing: Previous 2.8 7.7 4.8 3.7 1.4 0.8 Current 3.1 7.7 4.5 3.4 1.1 0.3 Percent change, 1993 - 1994 Business: Previous 2.3 5.3 2.9 3.2 0.6 0.9 Current 2.3 5.3 2.9 3.2 0.6 0.8 Nonfarm business: Previous 2.2 5.2 2.9 3.1 0.6 0.9 Current 2.2 5.2 2.9 3.1 0.5 0.9 Manufacturing: Previous 4.9 6.2 1.2 2.8 0.3 -1.9 Current 4.9 6.1 1.2 2.8 0.2 -2.0 - 6 - Next release date The next release of Productivity and Costs is scheduled for 10:00 AM EDT, Tuesday, May 9, 1995, and will contain preliminary first-quarter measures for business, nonfarm business, and manufacturing. Fourth-quarter and 1994 annual measures for nonfinancial corporations will be included at that time. 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--a free electronic bulletin board providing a variety of labor-related information and available to anyone with a computer, a modem, and communications software. 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 durables include: Food and kindred hours and employment data is the BLS products, tobacco products, textile Current Employment Statistics (CES) mill products, apparel products, paper program, which provides monthly survey and allied products, printing and data on total employment and average publishing, chemicals and chemical weekly hours of production and non- products, petroleum refining and supervisory workers in nonagricultural related industries, rubber and plastic establishments. Jobs rather than products, and leather and leather persons are counted. Weekly hours are products. Manufacturing accounted for adjusted to the hours at work about 19 percent of GDP in 1992. definition using the BLS Hours at Work Quarterly manufacturing output survey, conducted for this purpose. measures are based on the index of Data from the BLS Current industrial production prepared monthly Population Survey (CPS) are used for by the Board of Governors of the farm labor; in the nonfarm sector, the Federal Reserve System adjusted by BLS National Income and Product Accounts to annual manufacturing output levels (NIPA) prepared by the Bureau of Eco- (gross product originating) from the nomic Analysis of the Department of National Income and Product Accounts Commerce and the CPS are used to prepared by the Bureau of Economic measure labor input for government Analysis of the U.S. Department of enterprises, proprietors, and unpaid Commerce. family workers. Nonfinancial corporate output is equal to GDP in constant 1987 dollars, Output: Business output is equal to less the output of nonprofit 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, the output institutions, output of paid employees of unincorporated business, of private households, rental value of corporations engaged in banking, fi- owner-occupied dwellings, and the sta- nance, stock and commodity trading, tistical discrepancy in computing the and credit and insurance agencies, and NIPA. Corresponding exclusions are the statistical discrepancy in also made in labor inputs. Business computing the NIPA. Nonfinancial output was about 78 percent of GDP in corporations accounted for about 56 1992. Nonfarm business, which also ex- percent of GDP in 1992. cludes farming, was about 77 percent of GDP in 1992. Productivity: These productivity mea- Total manufacturing measures are sures describe the relationship computed by summing series prepared between real output and the labor time for the durable and nondurable goods involved in its production. They show sectors. Durables include the the changes from period to period in following 2-digit SIC industries: the amount of goods and services pro- Primary metal industries; fabricated duced per hour. Although these metal products; nonelectrical measures relate output to hours at machinery; industrial and commercial work of all persons engaged in a machinery and computer equipment; sector, they do not measure the electronic and other electrical specific contribution of labor, equipment; transportation equipment; capital, or any other factor of instruments; lumber and lumber prod- production. Rather, they reflect the ucts; furniture and fixtures; stone, joint effects of many influences, clay, glass, and concrete products; including changes in technology; and miscellaneous manufactures. Non- capital investment; level of output; - 8 - utilization of capacity, energy, and Information in this release will materials; the organization of produc- be made available to sensory-impaired tion; managerial skill; and the individuals upon request. Voice phone: characteristics and effort of the work 202-606-STAT; TDD phone: 202-606-5897; force. 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 r106.9 134.7 145.8 138.3 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 r107.4 137.4 150.4 141.6 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 r108.2 137.4 153.2 142.6 II 119.2 147.2 123.5 164.7 107.6 138.2 155.3 143.8 III 120.3 148.8 123.7 166.2 107.6 138.1 157.6 144.5 IV 120.8 150.8 124.8 r167.4 r107.8 r138.6 r157.3 r144.8 ANNUAL 119.9 148.1 123.5 165.6 107.8 138.1 155.9 r143.9 --------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1992 I 5.5 3.4 -1.9 5.8 r3.0 0.3 9.1 3.3 II 1.1 2.2 1.1 4.0 r0.9 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 r1.0 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 r0.1 2.5 0.3 1.7 III 3.3 4.0 0.7 3.0 r1.3 -0.3 2.1 0.6 IV 5.7 8.6 2.8 2.4 r-0.8 -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 r-2.3 2.3 5.8 3.5 III 3.7 4.5 0.8 3.6 0.0 -0.2 5.9 2.0 IV 1.7 5.4 r3.6 r3.1 r0.8 r1.3 r-0.6 r0.6 ANNUAL 2.3 5.3 2.9 3.2 0.6 r0.8 3.3 1.7 --------------------------------------------------------------------------------------------------------- 10 Percent change from corresponding quarter of previous year 1992 I 2.8 1.7 -1.1 4.9 r1.9 2.1 3.2 2.5 II 2.5 2.0 -0.6 4.9 r1.8 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 r1.9 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 5.6 3.0 3.1 0.2 0.6 4.8 2.0 IV r1.6 4.8 3.2 3.3 0.6 r1.7 r2.3 r1.9 ANNUAL 2.3 5.3 2.9 3.2 0.6 r0.8 3.3 1.7 --------------------------------------------------------------------------------------------------------- See footnotes following table 6. March 8, 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 r104.9 134.0 149.5 139.0 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 r106.2 136.1 152.1 141.2 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 118.2 148.8 126.0 164.1 106.3 138.9 160.8 145.9 IV 118.7 150.8 127.1 r165.5 106.6 139.5 r160.1 r146.1 ANNUAL 117.9 148.3 r125.7 r163.6 106.6 138.8 158.6 145.2 --------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1992 I 4.2 2.4 -1.8 5.7 r2.9 1.4 6.5 3.2 II 1.9 2.5 0.6 4.6 r1.4 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 r1.0 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 r-0.6 2.0 0.8 1.6 III 4.0 4.9 0.9 2.8 r1.1 -1.2 4.4 0.7 IV 4.9 7.9 2.9 2.4 r-0.9 -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 r-1.8 2.9 7.5 4.5 III 3.2 4.3 1.1 3.1 -0.4 -0.1 6.9 2.3 IV r1.7 r5.3 r3.5 r3.4 r1.2 r1.7 r-1.7 r0.5 ANNUAL 2.2 5.2 2.9 3.1 r0.5 0.9 3.5 1.8 --------------------------------------------------------------------------------------------------------- 12 Percent change from corresponding quarter of previous year 1992 I 2.4 1.4 -1.0 4.9 r1.9 2.4 2.8 2.5 II 2.4 1.8 -0.6 5.0 r1.9 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 r0.6 0.6 4.2 1.8 III 2.2 5.2 2.9 3.1 0.2 0.9 4.8 2.2 IV 1.4 4.5 3.1 r3.3 0.7 r1.9 r2.5 r2.1 ANNUAL 2.2 5.2 2.9 3.1 r0.5 0.9 3.5 1.8 --------------------------------------------------------------------------------------------------------- See footnotes following table 6. March 8, 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 r102.4 116.6 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 r102.0 113.4 III 138.8 144.6 104.2 157.2 101.8 113.3 IV r139.9 r147.3 105.4 r158.5 r102.1 r113.4 ANNUAL 138.0 143.7 104.2 157.1 102.3 r113.8 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1992 I 0.6 -1.6 -2.1 1.5 r-1.2 0.9 II 1.3 3.0 1.7 4.5 r1.4 3.2 III 2.6 2.1 -0.5 4.3 1.2 1.6 IV 3.8 5.3 1.4 6.5 r3.0 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 r2.9 3.5 III 3.0 3.0 0.0 3.9 r2.2 0.9 IV 6.0 6.9 0.9 3.9 r0.6 -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 r-3.9 -6.7 III 3.5 5.6 2.0 3.0 -0.5 -0.5 IV r3.1 7.7 r4.5 r3.4 r1.1 r0.3 ANNUAL 4.9 r6.1 1.2 2.8 r0.2 r-2.0 -------------------------------------------------------------------------------------------------- 14 Percent change from corresponding quarter of previous year 1992 I 2.6 1.3 -1.2 4.0 r1.0 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 r0.2 -2.5 III 5.4 6.8 1.3 2.4 -0.5 -2.9 IV 4.6 7.0 r2.2 r2.2 -0.4 r-2.3 ANNUAL 4.9 r6.1 1.2 2.8 r0.2 r-2.0 -------------------------------------------------------------------------------------------------- See footnotes following table 6. March 8, 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 r101.3 107.2 ANNUAL 137.3 136.3 99.3 146.1 100.5 106.4 1993 I 141.0 141.6 100.4 147.4 r99.3 104.5 II 142.3 142.2 99.9 149.4 100.0 105.0 III 143.4 143.5 100.1 150.7 r100.4 105.1 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 153.0 156.3 102.2 154.1 99.8 100.7 IV r154.3 r159.9 r103.7 r155.7 100.3 100.9 ANNUAL 151.9 r155.1 102.1 r154.1 100.4 101.5 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1992 I -1.0 -3.2 -2.2 0.9 r-1.8 1.9 II 3.3 3.7 0.4 5.2 r2.0 1.8 III 3.1 2.2 -0.8 4.1 1.0 1.1 IV 5.1 6.8 1.6 8.1 r4.5 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 r-7.7 -9.8 II 3.7 1.8 -1.9 5.6 r2.6 1.9 III 3.0 3.9 0.8 3.4 r1.7 0.3 IV 9.4 11.2 1.7 4.4 r1.1 -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 r-4.7 -7.2 III 4.8 7.8 2.9 2.7 -0.8 -1.9 IV r3.5 r9.6 r5.9 r4.1 r1.8 r0.6 ANNUAL 5.9 8.0 2.0 2.7 r0.1 -3.0 -------------------------------------------------------------------------------------------------- 16 Percent change from corresponding quarter of previous year 1992 I 3.5 1.3 -2.1 4.0 r1.0 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 8.9 2.1 2.3 -0.6 -4.1 IV r5.2 r8.5 r3.1 r2.2 -0.4 -2.9 ANNUAL 5.9 8.0 2.0 2.7 r0.1 -3.0 -------------------------------------------------------------------------------------------------- See footnotes following table 6. March 8, 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 r104.7 132.7 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 r106.3 135.6 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 r105.8 133.5 III 121.7 130.3 107.1 163.2 105.7 134.1 IV r122.4 r131.9 107.8 r164.0 r105.6 r134.0 ANNUAL r121.2 r129.8 107.1 162.8 106.0 r134.3 -------------------------------------------------------------------------------------------------- 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 r0.7 5.3 III 2.1 1.9 -0.2 4.6 1.5 2.5 IV 2.2 3.3 1.1 4.1 r0.7 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 r3.5 5.9 III 3.0 1.8 -1.1 4.6 r2.9 1.6 IV 1.4 1.1 -0.3 3.1 r-0.2 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 r-2.6 -5.8 III 1.6 2.5 0.9 3.3 -0.3 1.7 IV r2.4 r4.9 r2.5 r2.0 r-0.2 r-0.3 ANNUAL r3.4 r3.6 0.2 2.8 0.3 -0.5 -------------------------------------------------------------------------------------------------- 18 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 r0.6 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 3.5 3.9 0.4 2.3 -0.5 -1.1 IV r3.7 r4.8 1.1 2.1 r-0.6 r-1.6 ANNUAL r3.4 r3.6 0.2 2.8 0.3 -0.5 -------------------------------------------------------------------------------------------------- See footnotes following table 6. March 8, 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 r103.8 127.2 119.0 124.9 171.0 127.7 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 r103.1 127.1 116.2 124.0 228.8 130.5 ---------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1992 I 1.3 0.9 -0.4 3.9 r1.1 2.6 -2.6 1.2 14.8 2.2 II 2.9 4.7 1.7 4.7 r1.5 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 r0.8 -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 r-1.6 -3.0 -3.3 -3.1 38.9 0.2 III 4.5 6.0 1.5 2.2 r0.5 -2.1 0.0 -1.6 6.5 -0.8 IV 4.7 7.8 3.0 1.4 r-1.8 -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 r-2.6 1.4 -4.8 -0.3 20.7 1.8 III 2.0 4.2 2.2 3.3 -0.3 1.2 3.5 1.8 0.3 1.7 ---------------------------------------------------------------------------------------------------------- 20 Percent change from corresponding quarter of previous year 1992 I 2.4 1.7 -0.7 4.3 r1.3 1.8 -1.2 1.0 5.2 1.3 II 2.6 2.7 0.2 4.5 r1.4 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 r-0.2 -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 r-0.2 -0.5 -0.5 -0.5 14.7 0.9 III 2.1 5.7 3.5 2.4 -0.4 0.3 0.4 0.3 13.0 1.6 ---------------------------------------------------------------------------------------------------------- See footnotes following table 6. March 8, 1995 r=revised Source: Bureau of Labor Statistics 21 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.