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, 15 16 Historical, technical USDL 94-64 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 8, 1994 PRODUCTIVITY AND COSTS Preliminary Fourth-Quarter Measures and Annual Averages, 1993 The Bureau of Labor Statistics of the U.S. Department of Labor today reported preliminary fourth-quarter seasonally-adjusted annual rates of productivity changejas measured by output per hour of all personsjand annual changes for the full year 1993. In the fourth quarter, productivity increased 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 and annual 1993 measures are summarized in tables A and B 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............ 4.8 1.7 Nonfarm business sector.... 4.2 1.6 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 (table B). Growth in manufacturing productivity in 1993 reflected faster output growth than during 1992. A slight 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.............. 7.8 5.3 Durable goods manufacturing 12.6 8.2 Nondurable goods manufacturing 0.9 1.3 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 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 4.8 7.1 2.2 2.9 0.0 -1.8 Nonfarm business 4.2 6.6 2.3 2.9 0.0 -1.2 Manufacturing 7.8 9.2 1.2 3.0 0.1 -4.5 Durable 12.6 14.5 1.7 3.3 0.4 -8.2 Nondurable 0.9 1.5 0.6 2.4 -0.4 1.5 Percent change from same quarter a year ago Business 1.6 3.6 2.0 3.1 0.4 1.5 Nonfarm business 1.5 3.8 2.3 2.8 0.1 1.3 Manufacturing 5.5 5.4 -0.1 2.2 -0.5 -3.1 Durable 8.4 8.3 -0.1 1.7 -1.0 -6.2 Nondurable 1.2 1.2 0.0 2.9 0.2 1.7 THIRD-TO-FOURTH QUARTER CHANGES, 1993 Business Productivity increased at a 4.8 percent annual rate during the fourth quarter of 1993 in the business sector, as output growth accelerated to a 7.1 percent annual rate and hours of all persons engaged in the sector showed a 2.2 percent increase (seasonally adjusted). During the third quarter, business productivity had increased 3.3 percent; output grew 3.2 percent and hours fell 0.1 percent (table 1). The increase in productivity in the fourth quarter was the greatest gain since the first quarter of 1986, when a 6.1 percent increase occurred. The fourth-quarter 7.1 percent increase in output was the largest since the second quarter of 1987 when a like increase occurred, and the rise in hours followed a small decline during the third quarter. 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 1.8 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. Real hourly compensation, which takes into account changes in the Consumer Price Index for All Urban Consumers (CPI-U), was unchanged for persons in the business sector, compared with a 2.6 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 1.3 percent in the fourth 3 quarter. During the third quarter, prices of the goods and services which comprise business output had increased at a 1.1 percent annual rate. Nonfarm business In the nonfarm business sector, productivity gained 4.2 percent in the fourth quarter. Output rose 6.6 percent (the largest gain since a 7.2 percent gain in the second quarter of 1987), 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 0.8 percent increase in the average work week. 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 2.9 percent in the fourth quarter, but real compensation was unchanged 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 2.4 percent. Unit labor costs fell 1.2 percent in the fourth quarter, compared with a 0.4 percent decrease during the third quarter. The implicit price deflator for nonfarm business output rose 1.0 percent in the fourth quarter, about the same as the 1.1 percent increase one quarter earlier. Manufacturing Manufacturing productivity rose at a 7.8 percent seasonally adjusted annual rate in the fourth quarter of 1993, compared with a 3.1 percent increase in the third quarter. Output rose a robust 9.2 percent in the fourth quarter, and hours of all persons increased 1.2 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). 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 3.0 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 4.5 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 Business productivity increased 1.7 percent when the annual average for 1993 is compared with the annual average for 1992 (table B). In 1992, productivity grew 3.3 percent. Output grew 3.5 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 2.1 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. Table B. Annual changes in productivity and related measures, 1984-1993 Measure 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 Business: Productivity... 2.4 1.4 2.1 1.0 1.0 -0.7 0.7 1.0 3.3 1.7 Output......... 8.2 3.6 2.8 4.1 4.3 1.7 0.7 -1.3 2.9 3.5 Hours.......... 5.6 2.1 0.6 3.0 3.3 2.5 0.1 -2.3 -0.4 1.8 Hourly comp.... 4.3 4.5 5.0 3.6 4.4 3.5 5.7 4.9 5.0 3.8 Real hourly comp.0.0 0.9 3.1 -0.1 0.2 -1.3 0.3 0.6 2.0 0.8 Unit labor costs 1.9 3.0 2.8 2.5 3.4 4.3 5.0 3.8 1.7 2.1 Nonfarm Business: Productivity... 2.2 0.8 2.0 0.8 0.9 -0.9 0.4 1.1 3.1 1.6 Output......... 8.2 3.4 2.8 4.1 4.4 1.7 0.6 -1.3 2.7 3.7 Hours.......... 5.9 2.5 0.8 3.2 3.5 2.6 0.2 -2.4 -0.4 2.1 Hourly comp.... 4.1 4.1 5.0 3.5 4.2 3.3 5.5 5.0 5.1 3.6 Real hourly cmp.-0.2 0.6 3.1 -0.2 0.1 -1.4 0.1 0.8 2.0 0.6 Unit labor costs 1.9 3.3 2.9 2.6 3.2 4.3 5.1 3.9 2.0 1.9 Manufacturing: Productivity... 1.3 3.2 2.6 6.5 2.2 0.6 1.8 1.9 4.3 5.3 Output......... 7.8 2.4 1.1 7.2 5.2 0.9 -0.4 -2.2 3.2 4.9 Hours.......... 6.5 -0.7 -1.5 0.7 2.9 0.3 -2.2 -4.1 -1.1 -0.3 Hourly comp.... 3.2 5.0 4.1 2.3 3.9 3.9 5.3 5.4 4.4 2.8 Real hourly cmp.-1.1 1.4 2.2 -1.3 -0.2 -0.9 -0.1 1.1 1.3 -0.2 Unit labor costs 1.9 1.8 1.4 -4.0 1.6 3.3 3.5 3.4 0.1 -2.4 Nonfarm business Productivity increased 1.6 percent in the nonfarm business sector during 1993, as output rose 3.7 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 the 2.0 percent rise in 1992. Unit labor costs in the nonfarm business sector grew about as rapidly in 1993 as in 1992. The similar growth rates, 2.0 percent in 1992 and 1.9 percent in 1993, reflected a slowing of both productivity growth and hourly compensation gains from 1992 to 1993. Manufacturing Manufacturing productivity grew 5.3 percent in 1993, as output rose 4.9 per- cent and hours of all persons declined 0.3 percent. During 1992, productivity rose 5 4.3 percent; output rose 3.2 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 2.4 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, but the very large gain among durable goods producers reflected strong output growth and a decrease in hours. In nondurable goods industries, output and hours growth was comparatively modest in 1993 (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 somewhat different from the preliminary results announced on December 8, 1993. Productivity grew at an annual rate of 3.7 percent compared with the previously- announced growth rate of 3.5 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 1993: Previous 3.5 4.2 0.8 3.3 2.1 -0.1 -1.7 0.0 Current 3.7 4.5 0.7 3.3 2.0 -0.4 -0.3 -0.1 Next release date The next issue of Productivity and Costs is scheduled for release at 10:00 AM EST, Tuesday, March 8, 1994, and will contain revised fourth-quarter and annual measures for business, nonfarm business, and manufacturing. 6 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 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 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, unincorporated gross domestic product (GDP) in constant business, the output of 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, and 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 114.1 133.3 116.8 152.2 105.8 133.4 148.5 138.3 II 114.8 134.5 117.1 153.7 106.0 133.9 149.9 139.1 III 116.0 136.0 117.2 156.1 106.9 134.5 147.3 138.7 IV 117.1 137.9 117.7 157.8 107.3 134.8 152.6 140.6 ANNUAL 115.5 135.4 117.3 154.9 106.5 134.1 149.6 139.2 1993 I 116.6 138.0 118.3 159.1 107.1 136.4 152.1 141.6 II 116.6 139.3 119.5 160.1 107.0 137.3 153.1 142.5 III 117.6 r140.4 119.4 161.6 107.7 137.4 r153.9 r142.8 IV 119.0 142.8 120.1 162.8 107.7 136.8 156.5 143.3 ANNUAL 117.4 140.1 119.4 160.8 107.4 137.0 153.9 142.5 --------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1992 I 4.7 2.9 -1.8 5.7 2.3 0.9 7.8 3.3 II 2.5 3.4 1.0 4.1 0.9 1.6 3.9 2.4 III 4.2 4.6 0.4 6.2 3.4 1.9 -6.7 -1.2 IV 3.8 5.6 1.8 4.6 1.4 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 -0.5 5.0 -1.4 2.7 II 0.0 3.8 3.8 2.5 -0.4 2.5 2.6 2.6 III r3.3 r3.2 -0.1 3.9 r2.6 r0.5 r2.1 r1.1 IV 4.8 7.1 2.2 2.9 0.0 -1.8 7.1 1.3 ANNUAL 1.7 3.5 1.8 3.8 0.8 2.1 2.9 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 r1.3 r3.2 1.9 3.6 0.8 r2.2 r4.5 3.0 IV 1.6 3.6 2.0 3.1 0.4 1.5 2.6 1.9 ANNUAL 1.7 3.5 1.8 3.8 0.8 2.1 2.9 2.4 --------------------------------------------------------------------------------------------------------- See footnotes following table 6. February 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 112.4 133.3 118.7 150.9 104.8 134.3 149.8 139.3 II 113.1 134.4 118.8 152.6 105.2 134.9 151.5 140.2 III 114.1 135.9 119.0 154.8 106.0 135.6 148.7 139.8 IV 115.3 137.9 119.6 156.6 106.4 135.8 154.4 141.8 ANNUAL 113.7 135.4 119.1 153.7 105.7 135.1 151.1 140.3 1993 I 114.8 138.1 120.3 157.7 106.2 137.4 153.8 142.7 II 114.7 139.5 121.6 158.4 105.9 138.2 154.8 143.5 III r115.8 r140.9 121.7 r159.8 r106.5 138.0 r156.3 r143.9 IV 117.0 143.1 122.3 161.0 106.6 137.6 158.2 144.2 ANNUAL 115.5 140.4 121.5 159.2 106.3 137.8 155.8 143.6 --------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1992 I 3.8 2.1 -1.6 5.6 2.2 1.7 6.0 3.2 II 2.8 3.3 0.5 4.7 1.5 1.8 4.5 2.7 III 3.6 4.4 0.8 5.9 3.1 2.2 -7.2 -1.1 IV 4.2 6.0 1.8 4.6 1.4 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 -0.9 4.8 -1.6 2.5 II -0.4 4.0 4.4 1.9 -1.0 2.3 2.8 2.4 III r4.0 r4.1 0.1 3.7 r2.4 r-0.4 r3.8 r1.1 IV 4.2 6.6 2.3 2.9 0.0 -1.2 5.1 1.0 ANNUAL 1.6 3.7 2.1 3.6 0.6 1.9 3.1 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 0.6 2.4 2.2 2.3 III 1.5 r3.7 2.2 3.3 0.5 r1.8 r5.1 2.9 IV 1.5 3.8 2.3 2.8 0.1 1.3 2.5 1.7 ANNUAL 1.6 3.7 2.1 3.6 0.6 1.9 3.1 2.3 --------------------------------------------------------------------------------------------------------- See footnotes following table 6. February 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 127.5 129.8 101.8 145.4 101.0 114.1 II 129.1 131.5 101.9 147.1 101.5 114.0 III 130.2 131.9 101.3 148.7 101.9 114.2 IV 132.4 134.1 101.2 150.8 102.5 113.9 ANNUAL 129.9 131.8 101.5 r148.2 101.9 114.0 1993 I 134.1 136.3 101.6 149.9 100.9 111.8 II 136.0 137.4 101.0 151.7 101.4 111.5 III 137.1 r138.2 100.9 r153.0 102.0 111.6 IV 139.7 141.3 101.2 154.1 102.0 110.3 ANNUAL 136.8 138.3 101.1 152.2 101.7 111.3 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1992 I 4.0 2.1 -1.8 1.2 -2.0 -2.7 II 5.0 5.2 0.2 4.9 1.7 -0.2 III 3.6 1.2 -2.4 4.2 1.5 0.6 IV 7.0 6.8 -0.2 5.8 2.5 -1.2 ANNUAL 4.3 3.2 -1.1 4.4 1.3 0.1 1993 I 5.1 6.7 1.5 -2.3 -5.9 -7.0 II 5.9 3.4 -2.4 4.9 1.9 -1.0 III 3.1 r2.4 -0.6 r3.4 2.1 r0.3 IV 7.8 9.2 1.2 3.0 0.1 -4.5 ANNUAL 5.3 4.9 -0.3 2.8 -0.2 -2.4 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1992 I 3.9 2.7 -1.2 4.4 1.5 0.5 II 4.2 3.8 -0.4 4.3 1.2 0.1 III 3.8 2.4 -1.3 4.2 1.1 0.5 IV 4.9 3.8 -1.1 4.0 0.9 -0.9 ANNUAL 4.3 3.2 -1.1 4.4 1.3 0.1 1993 I 5.2 4.9 -0.2 3.1 -0.1 -2.0 II 5.4 4.5 -0.9 3.1 0.0 -2.2 III 5.3 4.8 -0.4 2.9 0.1 -2.3 IV 5.5 5.4 -0.1 2.2 -0.5 -3.1 ANNUAL 5.3 4.9 -0.3 2.8 -0.2 -2.4 -------------------------------------------------------------------------------------------------- See footnotes following table 6. February 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 137.9 137.2 99.5 143.0 99.4 103.7 II 140.9 139.6 99.1 144.9 99.9 102.8 III 142.7 140.3 98.3 146.4 100.3 102.6 IV 146.3 143.7 98.2 149.2 101.4 102.0 ANNUAL 142.1 140.2 98.7 146.0 100.4 102.8 1993 I 149.3 147.2 98.6 147.8 99.5 99.0 II 152.3 148.8 97.7 149.5 99.9 98.1 III r153.9 r150.4 97.7 150.6 100.4 r97.8 IV 158.6 155.6 98.1 151.8 100.5 95.7 ANNUAL 153.7 150.5 98.0 150.0 100.2 97.6 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1992 I 4.1 2.4 -1.6 -1.0 -4.2 -4.8 II 9.1 7.4 -1.5 5.4 2.3 -3.3 III 5.1 2.0 -3.0 4.2 1.5 -0.8 IV 10.3 9.8 -0.5 7.9 4.6 -2.2 ANNUAL 6.6 4.4 -2.0 4.4 1.4 -2.0 1993 I 8.7 10.4 1.5 -3.8 -7.3 -11.5 II 8.2 4.4 -3.5 4.6 1.6 -3.4 III r4.3 r4.2 r-0.1 3.0 1.8 r-1.3 IV 12.6 14.5 1.7 3.3 0.4 -8.2 ANNUAL 8.2 7.4 -0.7 2.7 -0.2 -5.0 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1992 I 5.7 3.6 -2.0 4.3 1.4 -1.3 II 6.9 5.1 -1.7 4.5 1.3 -2.3 III 6.1 3.6 -2.3 4.3 1.1 -1.7 IV 7.1 5.4 -1.6 4.1 1.0 -2.8 ANNUAL 6.6 4.4 -2.0 4.4 1.4 -2.0 1993 I 8.3 7.3 -0.9 3.3 0.1 -4.6 II 8.1 6.6 -1.4 3.1 0.0 -4.6 III r7.9 r7.2 r-0.6 2.8 0.1 r-4.7 IV 8.4 8.3 -0.1 1.7 -1.0 -6.2 ANNUAL 8.2 7.4 -0.7 2.7 -0.2 -5.0 -------------------------------------------------------------------------------------------------- See footnotes following table 6. February 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 114.8 120.9 105.2 150.2 104.4 130.8 II 114.8 121.5 105.9 151.9 104.7 132.3 III 115.2 121.5 105.5 153.5 105.1 133.2 IV 115.9 122.4 105.5 154.5 105.0 133.3 ANNUAL 115.3 121.6 105.4 152.7 105.0 132.4 1993 I 115.9 122.8 106.0 154.5 104.1 133.3 II 116.7 123.4 105.7 156.6 104.7 134.2 III r117.1 r123.4 105.4 158.1 105.4 r135.0 IV 117.3 123.8 105.5 159.1 105.3 135.6 ANNUAL 116.8 123.4 105.6 157.1 104.9 134.5 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1992 I 3.9 1.7 -2.2 4.7 1.3 0.7 II -0.2 2.3 2.5 4.4 1.2 4.6 III 1.5 0.0 -1.5 4.4 1.6 2.8 IV 2.5 2.7 0.2 2.7 -0.4 0.2 ANNUAL 1.3 1.5 0.2 4.5 1.5 3.2 1993 I -0.1 1.5 1.6 0.0 -3.7 0.1 II 2.9 2.0 -0.8 5.6 2.6 2.6 III r1.2 r-0.2 r-1.4 r3.8 r2.6 r2.6 IV 0.9 1.5 0.6 2.4 -0.4 1.5 ANNUAL 1.3 1.5 0.2 2.9 -0.1 1.6 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1992 I 1.5 1.5 -0.1 4.7 1.8 3.1 II 0.6 2.0 1.4 4.4 1.3 3.8 III 0.7 0.8 0.1 4.4 1.3 3.7 IV 1.9 1.7 -0.3 4.0 0.9 2.1 ANNUAL 1.3 1.5 0.2 4.5 1.5 3.2 1993 I 0.9 1.6 0.7 2.9 -0.3 1.9 II 1.7 1.6 -0.2 3.1 0.0 1.4 III r1.6 r1.5 -0.1 3.0 0.2 r1.4 IV 1.2 1.2 0.0 2.9 0.2 1.7 ANNUAL 1.3 1.5 0.2 2.9 -0.1 1.6 -------------------------------------------------------------------------------------------------- See footnotes following table 6. February 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 117.3 137.9 117.6 147.9 102.8 126.1 121.1 124.7 164.1 127.1 II 118.6 140.0 118.0 149.5 103.1 126.0 120.0 124.3 175.5 127.5 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 120.4 143.3 119.0 153.9 103.6 127.8 119.6 125.4 182.8 129.0 II 121.6 145.7 119.9 154.8 103.5 127.3 119.2 125.0 193.9 129.3 III r122.7 147.3 120.1 r156.0 104.0 r127.2 r119.4 125.0 r193.7 r129.2 ---------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1992 I 2.5 2.1 -0.3 3.9 0.6 1.5 -2.2 0.4 18.9 1.8 II 4.8 6.4 1.6 4.5 1.4 -0.2 -3.6 -1.2 30.6 1.1 III 5.8 5.4 -0.4 5.6 2.8 -0.2 4.6 1.1 -6.8 0.4 IV 4.5 6.9 2.2 4.0 0.8 -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 -1.6 6.4 4.3 5.9 -23.1 2.8 II 3.9 7.0 3.0 2.4 -0.5 -1.5 -1.3 -1.4 26.4 0.8 III r3.7 r4.5 r0.7 3.3 r2.0 r-0.4 r0.7 r-0.1 r-0.3 r-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 0.8 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 r2.0 3.8 1.8 3.0 0.2 1.0 r-1.6 r0.2 r12.4 1.3 ---------------------------------------------------------------------------------------------------------- See footnotes following table 6. February 8, 1994 r=revised Source: Bureau of Labor Statistics 15 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. 16 (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.