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Productivity and the Economy: A Chartbook U.S. Department of Labor Bureau of Labor Statistics March 1988 Productivity and the Economy A Chartbook / si. 3 ; U.S. Department of Labor Ann McLaughlin, Secretary Bureau of Labor Statistics Janet L. Norwood, Commissioner March 1988 Bulletin 2298 K*4 ,k7% J. tc“ U, I / ■** V^ U ^ C 0^ , For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402 Preface Productivity plays a role in most is sues of economic policy. Consequently, there is a continuous need for informa tion about productivity although the focus and level of attention vary with the economic climate. Thus, the relation be tween productivity and employment has been an especial concern in times of economic slowdown. During periods of rising prices, on the other hand, atten tion centers on the relationships among productivity, wages, and costs. Further more, the link between productivity and economic growth is constantly being studied. This chartbook is designed to show what has been happening to productiv ity and how it interacts with other as pects of the economy. The presentation is divided into two parts. The first part shows how productivity has changed over time. It presents charts, explana tory text, and data relating to trends in the traditional measures of labor pro ductivity, and also in the more recently developed BLS measures of multifactor productivity. The second part examines the influence of productivity on changes in costs, prices, and other variables. It also includes charts tracing trends in capital formation and research and de velopment. Wherever possible, interna tional comparisons are presented so as to add perspective to a subject that is often treated solely within a national framework. This chartbook was produced by the Office of Productivity and Technology of the Bureau of Labor Statistics. Material in this publication is in the public do main and, with appropriate credit, may be reproduced without permission. Contents V Page Productivity and how it is measured ............................................................................................................................. vii Part I: What has been happening to productivity.............................................................................................. 1 Charts: 1. Output per hour of all persons in the business economy, 1909-87 ... ....................................................................... 3 2. Output per hour of all persons in the total business and nonfarm business economy, 1960-87 ................................ 5 3. Output per hour of all persons by major sector, 1960-86 ........................................................................................... 7 4. Output per employee hour in selected industries, 1960-86 ....................................................................................... 9 5. Productivity rates in selected industries, 1973-79 and 1979-86 ................................................................................. 11 6. Output per hour of all persons, output per unit of capital, and multifactor productivity, private business sector, 1960-86 ............................................................................................................................................................... 13 7. Output per hour of all persons, capital effects, and multifactor productivity, selected periods, 1960-86 .................... 15 8. Output per hour and multifactor productivity in selected manufacturing industry sectors, 1960-83 and 1973-83 ....................................................................................................................................................... 17 9. Output per hour and multifactor productivity in four industries, 1960-85 ................................................................... 19 10. Output per employee year and related measures, Federal Government, measured sample, fiscal years 1967-86 ............................................................................................................................................................... 21 11. Output per employee year by functional grouping, and total measured sample, Federal Government, fiscal years 1967-86 ........................................................................................................................................... 23 12. Trends in real gross domestic product per employed person, selected countries, 1960-86 ........................................ 25 13. Relative levels in real gross domestic product per employed person, selected countries, 1960-86 ........................... 27 14. Output per hour in manufacturing, selected countries, 1960-86 ............................................................................... 29 15. Output per employee hour in manufacturing, selected countries, 1973-79 and 1979-86 ............................................ 31 Part II: Productivity change in relation to changes in costs, prices, real income, and employment ................................................................................................................................................................. 33 16. Output per hour of all persons, unit labor costs, and compensation per hour in the business economy, 1960-86 ............................................................................................................................................................... 35 17. Composition of price change, business economy, 1960-86 ....................................................................................... 37 18. Output per hour of all persons, compensation per hourjunit labor costs, and prices in major sectors, 1979-86 .................................................... . . . : ................................................................................................. 39 19. Output per employee hour and compensation per employee hour, selected manufacturing industries, 1972-85 ............................................................................................................................................................... 41 20. Relation between output per employee hour and prices, selected industries, 1965-85 .............................................. 43 21. Output per employee hour and employment, selected industries, 1973-86 ............................................................... 45 22. Output and employment in selected industries with similar productivity growth rates, 1960-85 .................................. 47 23. Output per hour of all persons and real compensation per hour in the business economy, 1950-86 .......................... 49 24. Gross domestic product per capita and average weekly hours in the business economy, 1950-86 ................................................................................................................... 51 Contents—Continued VI Page 25. Comparative levels in nonresidential capital formation per employed person, selected countries, 1979-85 ................................................................................................................................................................ 53 26. Growth rates in gross fixed capital formation per employed person, selected countries, 1970-79 and 1979-85 ................................................................................................................................................................ 55 27. Expenditures for research and development as a percent of gross national product, all R & D and nondefense R & D, selected countries, 1961-86 .................................................................................................................... 57 28. Scientists and engineers engaged in R & D, selected countries, 1976 and 1986 ...................................................... 59 Appendix: Supporting data for charts ...................................................................................................................................... 61 Productivity and How It Is Measured Productivity is a concept that expres ses the relationship between the quan tity of goods and services produced— output—and the quantity of labor, capi tal, land, energy, and other resources that produced it—input. It can be mea sured in two ways. One relates the out put of an enterprise, industry, or economic sector to a single input such as labor or capital. The other relates output to a composite of inputs, com bined so as to account for their relative importance. The choice of a particular productivity measure depends on the purpose for which it is to be used. The best known measure of produc tivity relates output to the input of labor time—output per hour, or its reciprocal, unit labor requirements. This kind of measure is used widely because labor productivity is relevant to most economic analyses, and because labor is the most easily measured input. Re lating output to labor input provides a tool not only for analyzing productivity but also for examining labor costs, real income > and employment trends. Labor productivity can be measured at several levels of aggregation: The business economy, its component sec tors, industries, or plants. Many of the productivity measures used in this chartbook are measures of output per hour. Depending on the components of the measure used and the context, labor productivity will be called output per hour of all persons engaged in the productive process, output per em ployee hour, or just output per hour. Movements of labor productivity index es reflect the change in labor input to produce goods and services. This does not imply that labor is solely or primarily responsible for productivity growth. Many factors affect the use of labor in generating output, including technologi cal innovations, changes in capital stock per-worker, capacity utilization, the scale of production, materials flow, management skills, as well as changes in labor skills and efforts. Multifactor productivity measures consist of output per unit of combined inputs of labor, capital, and intermediate materials (such as energy). They are also included in this chartbook and cover total private business, nonfarm business, manufacturing and its indus try sectors, and a number of manufac turing industries. Movements in these measures differ from those of traditional labor productivity measures because they exclude the effects of changes in the substitution of capital and other in puts for labor. The output side of the productivity ratio refers to the finished product or the amount of real value added in various enterprises or industries. Few plants or industries produce a single homogene ous commodity whose output can be measured by simply counting the number of units produced. Con sequently, for the purpose of measure ment, the various product lines of a plant’s or an industry’s output are com bined on some common basis—either their unit labor requirements or their dol lar value in a base period. When infor mation on the amount of units produced is not available, as is often the case, output is expressed in terms of the dol lar value of production, adjusted for price changes. Part I What has been happening to productivity The first set of charts in this part of the chartbook shows the longer term trend in output per hour in the business economy, its major sectors, and in selected industries. The next set examines trends in multifactor produc tivity, again detailing the different pat terns that mark the private business economy1, manufacturing and its indus try sectors, and some individual indus tries. In addition, there are charts which trace developments in output per em 1 ployee year in major parts of the Fed eral Government and charts which pro vide international comparisons of pro ductivity trends. 1T h e p riv a te b u s in e s s econom y e x c lu d e s g o v e rn m e n t e n te rp ris e w h ile th e total b u si n e s s e c o n o m y in clu d es it. Both d e fin ition s e x c lu d e su ch e n titie s a s no np ro fit e n te r prise s, a s w ell a s g o v e rn m e n t a g e n c ie s o th e r th a n g o v e rn m e n t e n te rp ris e (s u ch as th e P o st O ffic e ). 2 P ro d u c tiv ity has a d v a n c e d o v e r th e past e ig h t d e c a d e s .. . Official U.S. measures of productivity begin with the year 1909. In general, productivity has moved upward. In 1987, productivity in the business eco nomy was 41/2 times higher than in 1909. Period Output per hour of all persons in the business economy (average annual percent change) 1909-1987............................................................. 2.3 1909-291 ....................................................... 1929-471 ....................................................... 1947-73 ......................................................... 1973-79 ......................................................... 1979-87 ......................................................... 1.5 2.9 2.9 'Total private economy until 1946. 1.0 1.4 3 Chart 1. Output per hour of all persons in the business economy, 1909-87 Index, 1 9 0 9 — 1 0 0 S ource: B ureau of Labor S tatistics Ratio scale 4 . . .but th e a d v a n c e has slo w e d d u ring th e last d e c a d e and a half Rates of growth in the productivity of the total business economy and the nonfarm business economy slowed after 1973. No simple explanation for the decline exists, nor is there general agreement on the quantitative effect of the various factors. Explanations for the slowdown have included the effects of change in the composition of the labor force as the proportion of younger and less experienced workers has in creased; a slower rise in the capitallabor ratio, resulting from lessened in vestment in equipment and structures at the same time that employment and hours were rising strongly; a leveling off in research and development expendi tures; diversion of investment funds to pollution abatement; the maturation of some industries with little new technol ogy; and changes in attitudes toward work. The slowdown in productivity growth was most pronounced during the 1970’s. A partial recovery of the growth rate occurred over the 1979-87 span, largely owing to strong advances in goods-producing industries. In many of these industries, hours rose much more slowly than earlier compared with out put. Output per hour of all persons (average annual percent change) Period Business economy Nonfarm business economy 1960-87 ......................................... 1.8 1.6 1960-73 .................................. 1973-79 .................................. 1979-87 ................................... 2.7 .6 1.3 2.4 .5 1.1 5 Chart 2. Output per hour of all persons in the total business and nonfarm business economy, 1960-87 I960 1965 S ource: B ureau of Labor S tatistics 1970 1975 1980 1985 1990 6 P ro d u ctiv ity g ro w th v a rie s a m o n g secto rs of th e e c o n o m y .. . There are wide variations in the rates of productivity change of the various sectors of the economy. All sectors ex perienced significant slowdowns in their average annual rates of productivity growth between 1973 and 1979. Most have experienced faster growth in re cent years. Output per hour (average annual percent change) Sector1 F arm ............................................... Communications............................ Manufacturing................................ Electric, gas, and sanitary services....................................... Trade ............................................. Transportation .............................. M ining............................................. 1960-86 1960-73 1973-79 1979-86 5.0 4.5 2.8 4.3 4.9 3.2 3.1 4.2 1.4 7.9 4.0 3.5 2.7 2.3 1.6 .4 4.6 3.1 3.2 3.4 .1 .8 1.1 -7.1 1.3 2.0 -0.6 1.6 1Adequate productivity data are not available for services; construction; and finance, insurance, and real estate. 7 Chart 3. Output per hour of all persons by major sector, 1960-86 I960 1965 S ource: B ureau of Labor S tatistics 1970 1975 1980 1985 1990 s . . .and it varies even m o re a m o n g in d ivid u al in d u s trie s Productivity trends in individual indus tries are widely dispersed. Some indus tries, such as hosiery, together with synthetic fibers and malt beverages, had average annual increases of around 6 percent. These large in creases reflected many factors. Among them were new technologies, advanced production methods and increased out put with economies of scale. Other in dustries, such as footwear, coal mining, and metal stampings, experienced rela tively small gains or even declines. The lack of productivity gains in footwear, for example, has been linked to difficulties in adopting mass production methods; and the weak productivity in coal mining has been partly related to strong em ployment increases during the first half of the 1970’s. 9 Chart 4. Output per employee hour in selected industries, 1960-86 Average annual percent change Radio and television receiving sets Synthetic fibers Telephone communications Railroad transportation, revenue traffic Major household appliances Cotton and synthetic broad woven fabrics1 Gasoline service stations Instruments to measure electricity2 Tires and inner tubes Motor vehicles and equipment Department stores3 Paints and allied products Household furniture Steel Primary aluminum Hotels, motels, and tourist courts Commercial banking4 Coal mining Beauty shops1 Laundry and cleaning services Automotive repair shops1 -2 11 9 7 2 - 8 6 2 1 9 7 2 -8 5 319 6 7 -8 6 4 19 6 7 -8 5 S ource: B ureau of Labor S tatistics -1 0 1 2 3 4 5 6 7 P ro d u ctiv ity g ro w th a m o n g in d u s trie s has a c c ele ra te d s o m e w h a t in th e 1 9 8 0 ’s More than half of the industries for which productivity measures have been developed recorded faster productivity advances during the 1980’s than from 1973 to 1979. 11 Chart 5. Productivity rates in selected industries, 1973-79 and 1979-86 Copper mining, recoverable metal Radio and television receiving sets Railroad transportation, revenue traffic Bituminous coal and lignite mining Semiconductors and related devices Hydraulic cement Sawmills and planing mills Tires and inner tubes Steel Nonwool yarn mills Primary aluminum Air transportation Gasoline service stations Franchised new car dealers Pharmaceutical preparations Hosiery Wood kitchen cabinets Transformers Hand and edge tools Gas utilities Oilfield machinery and equipment -5 S ource: B ureau of Labor S tatistics 0 5 10 15 20 12 Multifactor productivity growth slowed down during the 1970’s Multifactor productivity— as mea sured by output per unit of labor and capital input— rose 1.1 percent per year between 1960 and 1986. Within this period, however, the rate of growth fell after 1973. The multifactor productivity measure differs from the familiar BLS measure of output per hour of all persons (or em ployees) in that it adjusts for the effects of changes in the capital-labor ratio. Comparing the two productivity series indicates how much the growth or falloff in the traditional measure was due to changes in capital per hour, and how much arose from a combination of such other factors as changes in technology, shifts in the composition of the labor force, capacity utilization, and so on. Multifactor productivity in the private econom y, selected periods Period 1960-86 A verage annual rates of growth (in percent) ................................................................................................................. 1.1 1960-73 .............................................................................................................. 1973-79 1979-86 .............................................................................................................. 1.8 .1 .5 13 Chart 6. Output per hour of all persons, output per unit of capital, and multifactor productivity, private business, 1960-86 1960 1965 Source: Bureau of Labor Statistics 1970 1975 1980 1985 1990 14 Multifactor productivity has grown significantly less than labor productivity The difference between the growth in the traditional BLS productivity meas ure— output per hour— and the multifac tor productivity series shows the con tribution of changes in the substitution of capital for labor. Almost all of the growth in labor productivity in the 1970’s resulted from the growth of capi tal substitution. During the 1980’s, both multifactor productivity and the substitu tion of capital for labor accelerated. Average annual rates of change in output per hour of all persons, the contribution of capital services per hour, and multifactor productivity, private econom y, 1960-86 1960-73 1973-79 (2) 1979-86 0) ............ 2.7 0.6 1.4 Minus: C ontribution of capital services per hour2 ..................... .9 .5 .9 Equals: M ultifactor productivity3 ............................... 1.8 .1 .5 M easures (3) Private b u sin ess1 O utput per hour of all persons 1Excludes governm ent enterprises. zC hange in capital per unit of labor w eighted by cap ital’s share of total output. 3O utput per unit of com bined labor and capital input. 15 Chart 7. Output per hour of all persons, capital effects, and multifactor productivity, private economy, selected periods, 1960-86 Average annual rates of change, in percent 4 . 0 ---------------------------------------------------- Growth of output per hour of all persons 3.5 Private business 1960-73 1973-79 Source: Bureau of Labor Statistics Manufacturing 1979-86 1960-73 1973-79 1979-86 Manufacturing industry sector multifactor productivity rates slowed during the 1973-83 decade BLS recently developed measures of multifactor productivity for 20 manufac turing industry sectors to supplement the traditional output-per-hour meas ures. All but 3 of the 20 industry sectors experienced a decline in both outputper-hour and multifactor productivity growth during the. 1973-83 span com pared with 1960-73. In the majority of industry sectors, the decline in outputper-hour growth was associated with a decline in the rate of capital substitution. 17 Chart 8. Output per hour and multifactor productivity in selected manufacturing industry sectors, 1960-83 and 1973-83 Average annual rates 4.0 Total manufacturing Primary metal industries Source: Bureau of Labor Statistics Food and kindred products Chemicals and allied products Transportation equipment Paper and allied products Machinery, except electrical 18 Some industries showed substantial productivity gains in the 1980’s In steel, motor vehicles, and tires and inner tubes, annual rates for both output per hour and multifactor productivity rose significantly in the 1980’s com pared to the 1970’s. Most returned to or exceeded the high rates of the 1960’s. In the footwear industry, output per hour also rose, but the multifactor productiv ity rate dropped. Output per hour and multifactor productivity in four industries, selected periods Average annual rates (in percent) Industry and m easure 1960-73 1973-79 1979-85 2.5 .8 0.2 -0.2 4.8 3.4 3.2 1.2 3.2 1.6 4.8 1.8 3.5 .8 2.9 2.9 6.7 4.4 .5 -1.5 1.2 1.0 1.4 -1.6 Steel O utput per hour ........................................................... M ultifactor productivity1 ............................................. M otor vehicles O utput per hour ........................................................... M ultifactor productivity1 ............................................ Tires and tubes O utput per hour ........................................................... M ultifactor productivity1 ............................................. Footw ear O utput per hour ........................................................... M ultifactor productivity1 ............................................ 10 u tp u t per unit of labor, capital, and interm ediate purchases, com bined by appropriate weights. Note: O utput per hour m ay differ from the data underlying oth er charts in this chartbook because of differ ences in the sources used and in the w eighting techniques for aggregating product lines. 19 Chart 9. Output per hour and multifactor productivity in four industries, 1960-85 I960 1965 1970 1975 1980 1985 1990 1960 1965 1970 1975 1980 1985 1990 1960 1965 1970 1975 1980 1985 1990 1960 1965 1970 1975 1980 1985 1990 Source: Bureau of Labor Statistics 20 Significant productivity advances have occurred in the Federal Government BLS has developed and refined pro ductivity measures for a substantial por tion of the Federal Government. Cur rently, these measures cover about two-thirds of Federal civilian employ ment. In the measured sample, produc tivity increased at a rate of 1.5 percent a year between 1967 and 1986, reflecting a 1.5-percent average annual increase in output and no change, on balance, in the level of employment. 21 Chart 10. Output per employee year and related measures, Federal Government, measured sample, fiscal years 1967-86 1967 1970 Source: Bureau of Labor Statistics 1975 1980 1985 1990 22 P ro d u ctiv ity g a in s v a ried s u b s ta n tia lly am o n g Federal G o v e rn m e n t o rg a n iza tio n s Federal Government organizations are grouped into 28 functional classifi cations. Productivity trends for the func tions have varied substantially, ranging from a long-term increase of 10.9 per cent per year for communications to a decrease of 2.9 percent for electric power production and distribution. Eight een of the categories exceeded the rate for the overall sample or equalled it, while 9 fell below. The largest gains in productivity were due to technological improvements in equipment and the introduction of com puterized systems. Thus, the increase in productivity in the communications function between 1973 and 1986 was associated with a sharp growth in out put and a declining work force. Through equipment upgrading, technological im provements, and increased use of auto mated facilities, the Federal telecom munications system was able to service an expanding volume of calls with lower labor inputs. Noteworthy productivity advances also occurred in library services. The application of automated systems to data retrieval systems, cataloging, cir culation, distribution, and inventory con trol contributed to productivity ad vances. Among functional areas with very small productivity advances were legal and judicial activities and printing and duplication services. The drop in elec tric power production and distribution reflects a considerable excess in input growth over the output growth rate, owing chiefly to difficulties in operating nuclear power installations at TVA power plants. 23 Chart 11. Output per employee year by functional grouping, and total measured sample, Federal Government, fiscal years 1967-86 Average annual percent change Communications Finance and accounting Library services General support services Buildings and grounds Regulation - rulemaking and licensing Loans and grants Records management Specialized manufacturing Procurement Regulation - compliance and enforcement Personnel investigations Transportation Social services and benefits Traffic management Education and training Natural resources and environmental mgmt. Total measured sample Postal service Supply and inventory control Information services Audit of operations Equipment maintenance Personnel management Military base services Printing and duplication Medical services Legal and judicial activities Electric power production & distrib. -4 S ource: Bureau o f Labor S tatistics -2 0 2 4 6 8 10 12 24 U.S. p ro d u c tiv ity g ro w th has traile d th a t o f o th e r m ajo r in d u strial c o u n trie s Between 1960 and 1986, real gross domestic product (GDP) per employed person increased at different rates among the seven major industrial coun tries compared here. Each country experienced a slower rate of growth in real GDP per em ployed person after 1973 than earlier. The slowdown was most marked in Japan. Real gross domestic product per employed person (average annual percent change) Country 1960-86 United States ...................... Canada ................................ Japan .................................. France ................................ Germany.............................. Ita ly....................................... United Kingdom .................. 1.2 1.9 5.5 3.6 3.1 3.7 2.2 1960-73 1973-79 1979-86 1.9 0.0 1.3 2.9 2.7 2.9 1.7 1.3 0.8 1.0 2.8 2.6 8.2 4.9 4.1 5.8 2.9 1.9 1.6 1.6 1.7 25 Chart 12. Trends in real gross domestic product per employed person, selected countries, 1960-86 I960 1965 Source: B ureau o f Labor S tatistics 1970 1975 1980 1985 1990 26 T h e U.S. level o f o u tp u t per hour, un like its tren d , is still a h ead o f th a t of o th er m ajo r in dustrial c o u n trie s Although the United States has the lowest rates of change in real domestic product per employed person among many industrialized countries, it still has the highest level of gross domestic product per employed person. The gap between the United States and the other countries has narrowed signific antly since the 1960’s. Japan gained the most over the period, yet its level in 1986 was still below that of the United States. Canada came closest to the United States in 1986, but its real product per civilian employee still remained 5 per cent below that of the United States. Gross domestic product per employed person relative to the United States, selected years and countries Country United States ................................ Canada ........................................... Japan ............................................. France ........................................... Germany......................................... Ita ly................................................. United Kingdom ............................ 1966 1976 1986 100 0 100.0 100.0 79.5 32.0 52.4 54.5 53.4 52.0 92.2 54.4 73.1 71.6 74.0 63.9 95.0 68.9 84.3 80.9 82.9 70.4 27 Chart 13. Relative levels in real gross domestic product per employed person, selected countries, 1960-86 Index, United States = 100 Source: Bureau of Labor S tatistics L o n g -term tren d s in m a n u fa c tu rin g p ro d u c tiv ity in m an y in d u strial c o u n trie s have o u tp a ce d th e U nited S tates Between 1960 and 1986, output per hour in manufacturing rose in the major industrial countries shown here. Pro ductivity growth was lowest in the United States and highest in Japan. Country United States ................................ Canada ........................................... Japan ............................................. France ........................................... Germany......................................... United Kingdom ............................ Manufacturing output per hour, 1960-86 (average annual percent rate) 2.8 3.1 7.9 5.3 4.6 3.6 29 Chart 14. Output per employee hour in manufacturing, selected countries, 1960-86 I960 1965 S ource: B ureau of Labor S tatistics 1970 1975 1980 1985 1990 30 P ro d u ctiv ity ad v a n c e d fa s te r a fte r 1979 than e a rlie r in several leading co u n tries After 1973, manufacturing productiv ity grew at a slower rate than over the 1960-73 period in all the major industrial countries compared here. The slow down was particularly marked for Japan and Italy. After 1979, however, the rate for the United States recovered and ex ceeded the rate for 1960-73. That also held for the United Kingdom. The rate for Germany and France failed to re cover; it declined even further for Canada. 31 Chart 15. Output per employee hour in manufacturing, selected countries, 1973-79 and 1979-86 Average annual percent change United States Canada Source: B ureau o f Labor S tatistics Japan France Germany United Kingdom Part II. Productivity change in relation to changes in costs, prices, real income, and employment The first charts in this section de monstrate the role of output per hour as a critical link between the cost of labor and the price of goods and services. Labor costs, which include pay and sup plementary benefits, represent the largest single cost element for most in dustries. Movement in labor costs per unit of output is closely associated with movement of prices. Unit labor costs in turn reflect changes in hourly compensation and productivity. If the ef fects of an increase in hourly labor costs can be reduced by increased pro ductivity, pressure to increase prices will lessen in a competitive economy. Increases in unit labor costs can re sult from, as well as cause, price in creases. If employee purchasing power drops because of higher prices, pres sure will develop for higher wages. Should wage increases exceed produc tivity growth, unit labor costs will rise. The next set of charts shows the movements of real hourly compensation and productivity. Differences between the movements in these two series pro 33 vide some indication of changes in the relative labor and nonlabor shares of output. These charts also show how the benefits of increased productivity have been taken, either in the form of higher income or more leisure. The relationship between productivity and employment is the subject of the next set of charts. The effects of pro ductivity on employment depend upon the circumstances in which the produc tivity change occurs. In expanding in dustries, increasing productivity histori cally has been associated with rising employment; in declining industries, productivity gains have been associated with shrinking employment. The last set of charts bears on some of the forces underlying productivity change. The effect of these forces on productivity cannot always be directly measured. The charts show changes in capital formation per employed person and in research and development ex penditures, both key factors affecting productivity change over time. C h a n g e s in unit lab o r c o s ts are in versely related to c h a n g e s in p ro d u c tiv ity Productivity is an important determin ant of cost movements. This is de monstrated by the two top panels of the chart, which are almost mirror images of each other, showing that unit labor costs tend to rise when productivity growth slows, and to decline when pro ductivity growth accelerates. Hourly compensation rose more dur ing the mid- and late 1970’s than before or after. In addition, the rate of produc tivity improvement was slower. Hence, unit labor costs rose much more rapidly. Between 1973 and 1979, the rate of productivity improvement was particu larly slow, while hourly compensation accelerated. Therefore, unit labor costs rose more steeply during this period than in the preceding or following periods. Average annual percent change Period Output per hour Unit labor costs Compensation per hour 1960-86 ......................................................... 1.9 4.8 6.7 1960-73 ....................................................... 1973-79 ....................................................... 1979-86 ....................................................... 2.7 3.1 6.3 4.9 5.9 9.0 6.3 .6 1.4 35 Chart 16. Output per hour of all persons, unit labor costs, and compensation per hour in the business economy, 1960-86 Percent change from previous year 12 Compensation per hour 4 -4 1960 S ource: B ureau of Labor S tatistics 1965 1970 1975 1980 1985 1990 36 C h a n g e s in p ric e s are c lo s e ly a s s o c ia te d w ith c h a n g e s in u n it lab o r costs Changes in unit labor costs generally are by far the most important compo nent of price changes, as the chart shows. Thus, if productivity growth miti gates increases in unit labor costs, this will in turn mitigate increases in prices. During most of the 1960’s and after 1982, unit labor costs rose little— mainly because productivity increases kept pace with the growth in hourly compen sation. Prices reflected the small in creases in unit labor costs. During the 1970’s, hourly compensation increased at a faster rate while productivity growth slowed, resulting in increasing unit labor costs and prices. This pattern persisted until 1981, after which productivity once again advanced at higher rates, reduc ing the rate of increase of unit labor costs and of prices. 37 Chart 17. Composition of price change, business economy, 1960-86 Percent change 12 10 8 Implicit price deflator 6 4 2 0 -2 12 10 8 Unit nonlabor payments 6 4 2 0 -2 1960 1965 S ource: B ureau of Labor S tatistics 1970 1975 1980 1985 1990 38 R apid a d v a n c e s in p ro d u c tiv ity u s u a lly m o d e ra te in cre a s e s in u n it la b o r c o sts and prices The rate of productivity advance in a sector is generally reflected in the cost and price trends of the sector’s output. Unit labor costs and prices usually rise more in sectors where productivity grows slowly than in sectors where it is growing rapidly. In the 1980’s (from 1979 to 1986), productivity in manufacturing increased at an average annual rate of 3.5 per cent. This in large measure offset a 6.4percent advance in compensation per hour and resulted in the comparatively low unit labor cost increase of 2.8 per cent a year and a rate of price increase of 3.3 percent. The farm sector showed a similar, if more pronounced pattern. So did the communications sector, al though here price trends did not fully re flect favorable unit cost trends. By contrast, the transportation, utilities, and mining sectors illustrate how large increases in unit labor costs result when productivity gains do not offset strong increases in hourly com pensation. Strong price increases also occurred in these sectors. 39 Chart 18. Output per hour of all persons, compensation per hour, unit labor costs, and prices in major sectors, 1979-86 Average annual percent change Output per hour Unit labor costs Compensation per hour Prices Farm Communications I Electric, gas, and sanitary services I Transportation Mining Manufacturing Trade -10 -5 Source: Bureau of Labor Statistics 10 15 -10 -5 0 5 10 15 40 Changes in hourly compensation and in productivity are not closely related In contrast to prices, the factors in fluencing changes in hourly compensa tion in individual industries appear to be independent of the factors influencing changes in productivity in these indus tries. This is shown in the chart by the high degree of uniformity in the in creases in compensation per hour, compared with the changes in output per employee hour. Hourly compensa tion increased about as much between 1972 and 1985 in industries with de clines in productivity growth, such as machine tools and millwork, as in indus tries with relatively high rates of produc tivity growth, such as soft drinks and tires and inner tubes. 41 Chart 19. Output per employee hour and compensation per employee hour, selected manufacturing industries, 1972-85 Average annual percent change Output per employee hour Compensation per hour Poultry dressing & processing Grain mill products Bakery products Bottled and canned soft drinks Hosiery Millwork Paper and plastic bags Synthetic fibers Pharmaceutical preparations Soaps and detergents Industrial organic chemicals Petroleum refinery Tires and inner tubes Footwear Steel Primary aluminum Metal cans Machine tools Pumps and compressors Motors and generators Motor vehicles S o u rc e : B u re a u o f L a b o r S ta tis tic s 42 Prices generally rise more rapidly when productivity increases slowly A generally inverse relation prevails between industry price change and pro ductivity change. Between 1965 and 1985, prices tended to decline or to in crease slowly in such industries as tele phone communications, women’s ready-to-wear stores, and synthetic fib ers, where productivity rose at aboveaverage rates. In contrast, prices rose strongly in such industries as concrete products, bakery products and steel foundries, where productivity change over the period was comparatively low. 43 Chart 20. Relation between output per employee hour and prices, selected industries, 1965-85 Average annual percent change Prices S o u rc e : B u re a u o f L a b o r S ta tis tic s 44 No clear relationship exists between changes in productivity and changes in employment Increases in productivity are often be lieved to be associated with decreases in employment. This is not necessarily so. Over the 1973-86 period, employ ment rose in a number of industries as productivity increased. Over the same period, however, employment dropped with advancing productivity in nearly three-fifths of all industries measured. Productivity gains in these industries were often traceable to cutbacks in mar ginally efficient capacity (as in iron and copper mining, steel, and some chemi cals), as well as to technological im provements (as in fluid milk and non wool yarn mills). Output growth was evi dently not large enough to offset em ployment losses. 45 Chart 21. Output per employee hour and employment selected industries, 1973-86 Average annual percent change Employment S e m ic o n d u c to rs a n d # re la te d d e v ic e s # In s tru m e n ts to # m e a s u re ele ctricity • # E atin g an d drinking p la c e s ® ® • M is c e lla n e o u s ® • • • B itu m in o u s co al an d lignite m ining 0 • • plastics prod uc ts • ^ • N, • L a u n d ry a n d • ^ c le a n in g s e r v i c e s # • j M o to r v e h ic le s a n d . # ® e q u ip m e n t T e le p h o n e ^ c o m m u n ic a tio n s < • w • % • • P rim a ry ^ • • ^ • 0 ® G ra in mill products # % a lu m in u m ^ • % ^ • statio n s ^9 > • G a s o lin e s e rv ic e # # • F o o tw e a r 0 • T ire s a n d ^ R a ilro a d tra n s p o rta tio n , r e v e n u e traffic • in n er tu b e s R a d io a n d te levis io n receivin g se ts S te e l • Iron m inin g, 0 u s a b le o re • ________________I_______________ -4 -2 _______________ I________________I________________I________________ I________________I________________I________________ 0 2 4 6 Output per employee hour S o u rc e : B u re a u o f L a b o r S ta tis tic s 8 10 12 14 46 Similar rates of change in productivity often reflect differing rates of change in output and employment The three industries shown have similar productivity growth rates— around 3.5 percent for the 1960-85 period. Despite the similarity, trends in employment varied, rising substantially in gas utilities, declining in the pulp and paper industry, and remaining virtually unchanged in drug and proprietary stores. The relation between labor productiv ity growth and employment trends is basically determined by the climate in which output growth in a given industry occurs. Rapid output growth over the 25-year period, as in gas utilities, was accompanied by comparatively large in creases in employment. Smaller gains in output, as in pulp and paper, were associated with employment declines. Where output rose at a fairly moderate rate, as in drug stores, virtually no change in employment resulted. 47 Chart 22. Output and employment in selected industries with similar productivity growth, 1960-85 Average annual rate of change Gas utilities S o u rc e : B u re a u o f L a b o r S ta tis tic s Drug & proprietory stores Pulp and paper 48 Real hourly compensation has generally advanced in line with productivity Labor has shared in the gains from productivity over the long run. Hourly compensation adjusted for changes in purchasing power— real hourly compen sation— has risen at about the same rate as output per hour. In recent years, however, productivity increases have greatly exceeded gains in real hourly compensation. A verage annual percent change Period O utput per hour of all persons Real com pensation per hour 1950-86 .................................................................. 1950-73 ............................................................... 2.1 2.7 2.0 2.9 1973-86 .................................................................. 1973-79 ............................................................... 1979-86 ............................................................... 1.0 .6 1.4 .3 .5 .2 49 Chart 23. Output per hour of all persons and real compensation per hour in the business economy, 1950-86 1950 1955 1960 S o u rc e : B u re a u o f L a b o r S ta tis tic s 1965 1970 1975 1980 1985 1990 50 Productivity advance has resulted primarily in higher incomes and consumption rather than in additional leisure One of the benefits of productivity im provement is that it makes an increas ing amount of goods and services avail able for consumption. This is shown by the steady increase in gross domestic product per person throughout the 1950-86 period. (Employment rose rela tive to population from the mid-1960’s onward; since then, the growth in domestic product per capita has ex ceeded the growth in productivity.) Some of the advance in productivity may be realized in the form of leisure (fewer hours worked). In addition to shorter work weeks, earlier retirement or later entry into the labor force may be options which are preferred over goods and services. Had all the productivity gains of the past third of a century been allocated to increasing product per capita, its growth rate would have been 2.1 percent annually over the 1950-86 period, rather than 1.7 percent. In con trast, had the productivity gains all been taken in the form of more leisure, aver age weekly hours would have de creased at an annual rate of 2.1 per cent, instead of 0.4 percent. Clearly, in creased income and, with it, increased consumption, had generally greater ap peal than increased leisure. A verage annual percent change Period G ross dom estic product per capita A verage w eekly hours ............................................... 1.7 -0.4 1950-73 ............................................. 1973-79 ............................................. 1979-86 ............................................. 2.3 .1 1.0 -0.4 -0.5 -0.3 1950-86 51 Chart 24. Gross domestic product per capita and average weekly hours, in the business economy, 1950-86 Index, 1950 = 100 Ratio scale Source: Bureau of Economic Analysis and Bureau of the Census, U.S. Department of Commerce; Bureau of Labor Statistics 52 Levels of U.S. capital formation per employed person have remained above those of other industrial countries International comparisons of the amount of real resources countries are devoting to increasing their capital stocks, and thereby to improving labor productivity, are difficult to make. The data should be considered as approxi mations only. For the 1970-85 period as a whole, the United States averaged a higher level of real capital formation per em ployed person than any of the other countries shown, except Canada. Dur ing the period 1979-85, again only Canada’s level of capital formation per employed person ran ahead of the United States. Since these estimates of comparative real capital formation relate to the total economy, they reflect differences in in dustrial structure as well as in industryspecific fixed assets. For example, Canada has a much larger share of its investment in such capital-intensive ac tivities as waterworks and electric, gas, and steam utilities than the other coun tries. Per employed person, the United States had higher levels of investment in producers’ durable equipment than all the other countries shown; however, U.S. investment in nonresidential build ing was lower than in Canada and Japan. Comparative levels of capital formation, 1979-85 Country United States .......................................... C anada ...................................................... Japan ........................................................ France ...................................................... G e rm a n y .................................................... I t a ly ............................................................. United K ingdom ..................................... P roducers’ durable equipm ent per em ployed person 100.0 73.2 72.9 95.0 94.1 58.6 66.1 Nonresidential building per em ployed person 100.0 158.7 121.9 75.4 86.6 69.1 49.7 53 Chart 25. Comparative levels of nonresidential capital formation per employed person, selected countries, 1979-85 Averages for periods Index, United States = 100 120 United States 100 60 I I I I 40 20 Canada Japan France Germany Italy United Kingdom Source: Irving Kravis et al., A System for International Comparisons of Real Product and Purchasing Power, and Bureau of Labor Statistics 54 The growth in U.S. gross fixed capital formation per employed person has lagged behind that of other major industrial countries While the level of capital formation per employed person in the United States remains above that of other major industrial countries (except Canada), its growth rate has remained lower than that of Japan and the United Kingdom. Compared with 1970-79, however, the rate for 1979-85 improved significantly for the United States (as also for the United Kingdom) while it re ceded for Japan, France, and Germany. 55 Chart 26. Growth rates in gross fixed capital formation per employed person, selected countries, 1970-79 and 1979-85 S o u rc e : B u re a u o f L a b o r S ta tis tic s As a percent of gross national product, U.S. research and development expenditures generally have run ahead of other major industrial countries Statistics on research and develop ment activity are not as readily available for other countries as they are for the United States. Nevertheless, sufficient information exists for some compari sons between the United States and its major trading partners. R&D expenditures as a proportion of GNP were higher in the United States than in the four other industrial coun tries compared until the mid-1970’s. The rates for Germany and Japan then began to catch up with the U.S. rate. Data for recent years indicate that the proportion of GNP devoted to overall R&D expenditures is similar in the coun tries covered here. More than half of U.S. R&D funds are provided by the Government, and more than half of these funds are for defense and space objectives. When R&D ex penditures for national defense and space are excluded from the compari sons, Japan and Germany show the highest ratios of R&D expenditures to output. 57 Chart 27. Expenditures for research and development as a percent of gross national product, all R&D and nondefense R&D, selected countries, 1961-86 P e rc e n t 1971 1975 S o u r c e : N a t i o n a l S c i e n c e F o u n d a t io n 1980 1985 1990 58 The number of U.S. scientists and engineers engaged in R&D is the highest among industrial countries In p r o p o r t io n to its la b o r f o r c e , th e U n it e d S t a t e s h a s a g r e a t e r n u m b e r o f s c ie n t is t s a n d e n g i n e e r s e n g a g e d in r e s e a rc h and d e v e lo p m e n t th a n o th e r la r g e in d u s t r ia l c o u n t r ie s , b u t t h e d i f f e r e n c e h a s n a r r o w e d . In 1 9 7 6 , t h e U n it e d S t a t e s h a d 5 5 s c ie n t is t s a n d e n g i n e e r s in R & D p e r 1 0 , 0 0 0 p e r s o n s in t h e la b o r f o r c e w h ile t h e o t h e r c o u n t r i e s h a d 3 0 to 4 8 . T h e p r o p o r t io n h a s s in c e in c r e a s e d in th e U n it e d S ta te s but s u b s t a n t ia lly m o r e in t h e o t h e r c o u n t r ie s , p a r t ic u la r ly in G e r m a n y a n d J a p a n . 59 Chart 28. Scientists and engineers engaged in R&D, selected countries, 1976 and 1986 S o u rc e : B u re a u o f L a b o r S ta tis tic s Appendix. Supporting data for charts 61 Table 1. Output per hour of all persons in the business economy,1 1909-87 (Index, 1909 = 100) Year O utput per hour 1909 1910 1911 1912 1913 1914 100.0 O utput per hour 1949 198.6 1950 1951 1952 1953 1954 215.1 223.8 230.7 239.2 243.0 1955 1956 1957 1958 1959 250.3 253.7 260.3 268.0 276.9 1960 1961 1962 1963 1964 281.5 291.4 301.9 313.8 327.5 1965 1966 1967 1968 1969 337.2 346.5 355.7 365.3 365.5 1970 1971 1972 1973 1974 368.1 380.0 391.5 399.2 390.7 1975 1976 1977 1978 1979 398.3 409.3 416.3 419.7 414.6 1980 1981 1982 1983 1984 413.2 419.2 417.5 428.8 439.5 1985 1986 1987 447.6 455.2 459.3 105.6 101.2 103.0 103.3 100.3 1915 1916 1917 1918 1919 98.0 107.0 108.2 1920 1921 1922 1923 1924 101.5 104.0 113.3 117.8 121.4 1925 1926 1927 1928 1929 126.2 129.7 130.0 129.9 133.8 1930 1931 1932 1933 1934 129.9 125.6 120.9 117.7 129.1 1935 1936 1937 1938 1939 134.4 140.3 143.0 145.5 150.0 1940 1941 1942 1943 1944 155.9 167.6 176.7 182.6 188.9 1945 1946 1947 1948 194.3 186.8 187.0 196.5 'Total private econom y until 1946. Year 99.7 100.6 62 Table 2. Output per hour of all persons in the total business and nonfarm business economy, 1960-87 (Index, 1960 = 100) O utput per hour Year B usiness N onfarm business 1960 1961 1962 1963 1964 ...................................................... ...................................................... ...................................................... ...................................................... ...................................................... 100.0 103.0 107.2 111.5 116.3 100.0 103.1 106.5 110.3 114.7 1965 1966 1967 1968 1969 ...................................................... ...................................................... ...................................................... ...................................................... ...................................................... 119.8 123.1 126.4 129.8 129.9 117.6 120.1 122.8 126.0 125.4 1970 1971 1972 1973 1974 ...................................................... ...................................................... ...................................................... ...................................................... ...................................................... 130.8 135.0 139.1 141.8 138.8 125.7 129.5 133.5 135.9 132.9 1975 1976 1977 1978 1979 ...................................................... ...................................................... ...................................................... ...................................................... ...................................................... 141.5 145.4 147.9 149.1 147.3 135.2 138.7 140.9 142.1 139.8 1980 1981 1982 1983 1984 ...................................................... ...................................................... ...................................................... ...................................................... ...................................................... 146.8 148.9 148.3 152.3 156.1 139.2 140.6 139.8 144.4 147.4 1985 ...................................................... 1986 ...................................................... 1987 ...................................................... 159.0 162.0 163.5 149.1 151.5 152.7 63 Table 3. Output per hour of all persons by major sector, 1960-86 (Index 1960 = 100) Year Farm Mining M anufac turing Transp or tation C om m uni cations Electric, gas, and sanitary services Trade 1960 1961 1962 1963 1964 .... .... .... .... .... 100.0 105.0 107.4 112.5 114.5 100.0 107.0 112.2 119.6 122.6 100.0 102.8 107.2 114.4 120.0 100.0 102.5 106.0 112.1 113.6 100.0 106.4 113.3 120.9 124.3 100.0 105.6 111.4 115.6 123.4 100.0 101.9 107.7 112.0 115.5 1965 1966 1967 1968 1969 .... .... .... .... .... 120.9 121.4 135.2 131.7 143.8 127.1 134.1 142.9 150.6 152.3 123.1 124.7 124.6 128.7 130.2 120.3 127.4 125.1 130.7 134.0 128.6 133.9 141.8 149.3 152.5 125.6 133.1 135.8 146.9 151.1 119.8 125.0 129.0 134.2 132.6 1970 1971 1972 1973 1974 .... .... .... .... .... 160.7 173.1 172.0 173.0 172.7 159.7 161.5 158.1 153.6 139.5 130.2 137.5 143.4 150.4 145.9 133.1 134.4 142.9 149.7 149.7 158.0 169.2 178.0 185.4 190.5 150.3 163.2 164.5 179.8 182.1 133.7 137.9 145.2 149.2 145.1 1975 1976 1977 1978 1979 .... .... .... .... .... 192.5 193.6 196.6 190.0 207.7 125.0 116.4 112.0 109.1 99.0 149.6 156.4 161.1 163.4 163.3 148.1 156.6 160.0 163.2 159.4 206.8 219.3 225.7 234.7 237.9 197.3 194.7 192.2 186.5 180.5 147.4 151.0 154.4 156.3 156.0 1980 1981 1982 1983 1984 .... .... .... .... .... 213.7 259.7 275.5 218.2 252.5 95.1 87.7 86.0 96.6 99.5 163.3 166.9 170.6 180.5 190.4 154.2 147.2 140.3 145.4 151.1 248.8 260.0 266.5 301.1 286.3 181.6 186.3 188.2 192.5 206.5 153.4 154.9 156.5 160.1 167.0 1985 ___ 1986 . . . . 320.8 354.4 102.1 111.0 200.1 207.5 147.2 152.6 302.7 312.8 203.9 197.8 172.8 179.6 64 Table 4. Output per employee hour in selected industries, 1960-86 A verage annual rates of change 1960-86 Industry A verage annual rates of change 1960-86 S em iconductors and related de vice s1 W et corn m illing2 ..................................... Malt b e v e ra g e s ........................................ Radio and television receiving s e t s ........................................................ Synthetic f ib e r s ........................................ 13.1 8.0 6.4 M eat packing plants3 ............................ Iron m ining, crude o r e ............................ Drug and proprietary stores ................ 3.3 3.3 3.2 6.3 6.2 H o s ie r y ...................................................... Telephone c o m m u n ic a tio n s ................ W om e n’s ready-to-w ear stores3 .................................................... Air transportation ................................... Appliance, radio, television and music stores3 ..................................... 6.0 5.7 Furniture, hom e furnishings and equipm ent stores3 ............................... E lectric utilities ........................................ C opper m ining, recoverable m e t a l...................................................... Tires and inner tubes ............................ Canned fruits and veg etab le s4 ............ Fluid m ilk4 ................................................. Railroad transportation, revenue t r a f f ic ...................................................... Household refrigerators and fre e z e r s ................................................. Petroleum pipelines .............................. A lum inum rolling and draw ing ............ 4.7 Industry Industrial organic chem icals, N.E.C .2 ................................................. M ajor household a p p lia n c e s ................ C eram ic w all and floor tile4 ................... Household cooking e q u ip m e n t............ Fam ily clothing stores3 .......................... 5.7 5.2 5.1 3.1 3.0 3.0 Poultry dressing and processing2 . . . . Red m eat products3 ............................... M otor vehicles and e q u ip m e n t............ Household appliances, N .E .C ............... Softw ood veneer and plyw ood6 ......... 2. 9 2.9 2.8 2.8 2.8 D epartm ent stores3 ............................... P etroleum refining ................................. C ig a r s ......................................................... Railroad transportation, carm iles ...................................................... M etal cans ............................................... 2.8 2.8 2.8 4.5 4.5 4.3 4.2 4.1 4.0 4.0 4.0 3.8 H ousehold laundry e q u ip m e n t............ Cotton and synthetic broad woven fa b rics1 ................................................. C orrugated and solid fiber boxes .................................................... G asoline service s ta t io n s ..................... Apparel and accessory stores3 ............ 3.8 C opper mining, crude o r e ..................... Bottled and canned soft d r in k s ............ Pharm aceutical preparations5 ............ Grain mill products2 ............................... Paper, paperboard, and pulp m ills ........................................................ 3.7 3.6 3.5 3.5 Veneer and plyw ood4 ............................ Prim ary c o p p e r ........................................ Prim ary copper, lead, and z i n c ........................................................ M attresses and bedsprings ................ Prepared feeds fo r anim als and fow ls2 ................................................... 3.5 3.4 Instrum ents to measure electricity6 ............................................ Flour and other grain mill products ............................................... 3.2 3.1 3.7 3.7 3.7 3.7 3.5 3.4 3.4 3.4 3.3 3.3 P reserved fruits and vegetables4 .......................................... S tructural clay products ........................ C lay construction p r o d u c ts ................... Iron m ining, usable o r e .......................... Clay r e fra c to rie s ...................................... Flour (including flou r m ixes) and oth er grains2 ........................................ C osm etics and other toiletries4 ............ M en’s and bo ys’ clothing stores3 .................................................... Crushed and broken s t o n e ................... Hydraulic cem ent ................................... 2.7 2.7 2.7 2.7 2.6 2.6 2.6 2.6 2.6 2.6 2.5 2.5 Paints and allied products ................... A lkalies and c hlorine6 ............................ G as and electric u t ilit ie s ........................ N onwool yarn m i l l s ................................. Saw m ills and planing mills, general ................................................. 2.5 2.4 2.4 2.4 G lass c o n ta in e rs ...................................... C opper rolling and d r a w in g ................... Upholstered household furniture4 ............................................... Hardw ood ven eer and plyw ood6 ......... Autom otive stam pings6 .......................... 2.3 2.3 2.2 2.2 2.2 Metal household furniture4 ................... Soaps and detergents4 .......................... P aper and plastic bags4 ........................ 2.2 2.2 2.1 2.4 65 Table 4. Output per employee hour in selected industries, 1960-86 (continued) Industry A verage annual rates of change 1960-86 Farm and garden m achinery4 .............. H ousehold furniture .............................. 2.1 2.1 Metal office furniture4 ............................ M iscellaneous plastics products6 ............................................... Sugar ........................................................ S t e e l.......................................................... Cereal breakfast foods2 ....................... 2.1 Concrete products4 ................................. Sw itchgear and sw itchboard apparatus5 .......................................... Furniture and home furnishings stores3 .................................................... Rice m illing2 ............................................ Sausages and other prepared m eats3 ................................................... Lighting fixtures7 ..................................... Electric la m p s .......................................... Bakery products4 ................................... Raw and refined cane s u g a r ................ O ffice furniture ........................................ 2.0 2.1 2.1 2.0 2.0 2.0 2.0 2.0 2.0 1.9 1.9 1.9 1.9 1.9 Industry A verage annual rates of change 1960-86 W ood office furniture4 ............................ W ood kitchen cabinets6 ....................... Com m ercial banking8 ............................ 1.2 1.2 1.2 Ball and roller b e a rin g s .......................... Metal doors, sash, and trim 8 ................ R efrigeration and heating equipm ent8 .......................................... Metal stam pings2 ................................... V alves and pipe fittings4 ....................... 1.1 1.1 1.1 1.0 1.0 Pumps and pum ping equipm ent6 .......................................... Gas u tilitie s ............................................... Air and gas com pressors6 ................... M achine tool accessories2 ................... Fabricated structural m etal4 ................ .9 .8 .8 .8 .8 Ready-m ixed concrete4 ....................... Coal m in in g ............................................... B itum inous coal and lignite m in in g ................................................... Hand and edge tools4 ............................ M illw ork4 ................................................... .7 .6 .6 .6 .5 N onm etallic minerals, except fuels ...................................................... Lawn and garden equipm ent6 .............. Primary a lu m in u m ................................... Franchised new car d e a le r s ................ W ood household furniture4 ................... 1.9 1.9 1.8 1.8 1.8 Liquor stores1 .......................................... Beauty sho ps1 .......................................... Metal cutting m achine tools ................ Inorganic pigm ents6 .............................. Steel fo u n d r ie s ........................................ .5 .5 .4 .4 .4 G ray iron fo u n d r ie s ................................. Brick and structural clay tile ................ Total tobacco p r o d u c ts .......................... Pum ps and com pressors4 ................... Folding paperboard boxes5 ................ 1.7 1.7 1.7 1.7 1.7 Footwear ................................................. Retail food s t o r e s ................................... Laundry and cleaning s e r v ic e s ................................................. Eating and drinking p la c e s ................... Beauty and barber sho ps1 ................... .4 .3 Motors and generators4 ....................... Intercity trucking4 ................................... Heating equipm ent, except electric6 ................................................. T ransform ers5 .......................................... Internal com bustion engines, N.E.C .8 ................................................. 1.7 1.7 Shoe stores3 ............................................ Hotels, motels, and tourist courts ................................................... Construction m achinery and e q u ip m e n t............................................ Beet sugar ............................................... Intercity trucking, general freight4 ................................................. Cigarettes, chewing and smoking to b a c c o ................................................. H ardw are sto re s1 ................................... 1.6 1.6 1.6 1.6 1.6 1.5 1.5 1.5 Farm m achinery and equipm ent6 .......................................... M achine t o o l s .......................................... Industrial inorganic chem icals6 .......................................... Oilfield m achinery and equipm ent3 ................................. Fabricated pipe and fittings4 ................ Industrial inorganic chem icals, N.E.C.6 ................................................. Metal stam pings, N .E .C .6 ..................... C lass I bus carriers4 .............................. Metal form ing m achine to o ls ................ Mining m achinery and equipm ent6 .......................................... A utom otive repair sho ps1 ..................... 1.5 1.3 1T972-86 51963-86 21963-85 61972-85 31967-86 71961-85 41960-85 81967-85 .3 .3 .2 .1 .1 0.0 -0.1 -0.2 -0.4 -0.6 -0.7 -1.0 -1:0 -1.2 66 Table 5. Productivity rates in selected industries, 1973-79 and 1979-86 (Average annual rates) Advance/ falloff from 1973-79 to 1979-86 Industry 1973-79 1979-86 Iron mining, usable o r e ................. Copper mining, recoverable m e ta l............................................. Bituminous coal and lignite m in in g ........................................... Nonmetallic minerals, except fuels ............................................. Red meat p ro d u c ts ........................ -0.3 7.1 7.5 5.1 14.5 9.4 -3.7 7.4 11.1 1.8 4.0 1.6 2.5 -0.1 -1.5 Poultry dressing and processing1 .................................. Fluid milk1 ....................................... Preserved fruits and vegetables1 .................................. Grain mill products1 ..................... Bakery products1 .......................... 5.0 4.4 4.5 4.7 -0.5 .3 1.8 3.9 .7 2.6 6.1 2.8 .8 2.2 2.1 1.3 7.1 .9 3.2 -0.4 «-3.8 Sugar ............................................. Malt beverages.............................. Bottled and canned soft drinks ........................................... Total tobacco p ro d u c ts ................. Cotton and synthetic broad woven fa b ric s .............................. 5.7 2.4 5.4 2.0 -0.3 -0.4 4.7 3.7 -1.0 H o s ie ry ........................................... Nonwool yarn m ills ........................ Sawmills and planing m ills ........... Millwork1 ......................................... Wood kitchen cabinets1 ............... 5.7 3.3 1.2 -1.3 3.3 1.3 4.6 5.8 -1.5 -0.7 -4.4 1.4 4.7 -0.2 -4.0 Veneer and plywood1 ................... Household furniture ..................... Office furniture .............................. Paper, paperboard, and pulp m ills ....................................... Paper and plastic bags1 ............... 2.0 1.2 3.8 4.3 2.3 1.3 2.3 1.1 -2.4 2.9 3.1 .2 .6 2 .2 1.6 Advance/ falloff from 1973-79 to 1979-86 Industry 1973-79 1979-86 Folding paperboard boxes . . . . Corrugated and solid fiber boxes ..................................... Industrial inorganic chemicals1 ............................ Synthetic fib e rs .......................... Pharmaceutical preparations . . 1.8 -0.3 -2.1 3.3 2.4 -1.0 1.4 6.9 3.3 0.0 3.5 1.5 -1.5 -3.4 -1.8 .6 -1.0 -1.6 1.6 3.9 -0.3 2.9 -1.9 -1.0 3.0 1.7 1.0 2.5 -2.1 .8 Tires and inner tubes ............... Miscellaneous plastics products1 ................................ Footwear .................................. Glass containers........................ Hydraulic c e m e n t...................... 2.7 5.8 3.2 1.8 .5 1.1 .9 3.3 1.4 4.1 6.5 1.5 .8 3.0 5.6 Structural clay products ........... Concrete products1 ................... S te e l........................................... Gray iron fo u n d rie s................... Steel fo u n d rie s .......................... 1.6 .6 .4 .7 -1.3 2.8 1.9 5.2 1.9 -0.7 1.2 1.3 4.8 1.2 .6 Primary copper, lead, and z in c ......................................... Primary alum inum ..................... Copper rolling and drawing . . . . Aluminum rolling and drawing . Metal cans ................................ 2.7 -0.6 2.5 1.7 4.5 10.0 4.3 5.2 3.6 3.6 7.3 4.9 2.6 -0.9 .7 -2.3 -3.0 Soaps and detergents1 ............. Cosmetics and other toiletries1 ................................ Paints and allied products1 . . . . Industrial organic chemicals, N.E.C.1 .................................. Petroleum refining ................... Hand and edge tools1 ............... 1.9 67 Table 5. Productivity rates in selected industries, 1973-79 and 1979-86 (continued) (Average annual rates) Industry Heating equipment, except electric1 ....................................... Fabricated structural metal1 ........ Metal doors, sash, and trim1 ........................................... Metal stampings1 .......................... Valves and pipe fittings1 ............... Fabricated pipe and fittings1 ........ Internal combustion engines, N.E.C.1 ...................................... Farm and garden machinery1 . . . . Construction machinery and equipm e nt.................................. Mining machinery and equipment1 ................................ Oilfield machinery and equipm e nt.................................. Machine to o ls ................................ Machine tool accessories1 ........... Pumps and compressors1 ........... Ball and roller be aring s................. Refrigeration and heating equipment1 ................................ Transformers ................................ Switchgear and switchboard apparatus .................................. Motors and generators1 ............... Major household appliances........ Electric la m p s ................................ Lighting fixtures1 ............................ Radio and television receiving s e t s ............................................. Semiconductors and related devices ...................................... 11979-85 Advance/ falloff from 1973-79 to 1979-86 1973-79 1979-86 3.9 -1.4 0.3 2.1 -3.6 3.5 1.1 1.2 2.7 1.1 1.6 -0.1 1.0 -3.0 0.0 .4 -1.0 3.3 2.2 .8 .6 1.0 -1.5 .2 1.3 1.0 -0.3 -3.2 .4 3.6 -1.0 -4.8 -1.2 -1.9 -3.7 -0.1 -1.3 -0.4 -1.1 -0.6 1.3 .5 .9 -1.1 -1.6 -0.2 1.1 2.4 -1.5 1.4 -3.9 .7 2 .2 .1 2.1 3.2 3 .6 2.8 3.9 .4 1.1 1.3 2.3 1.0 5.6 14.1 8.6 18.2 7.1 -11.1 1.4 2.0 Industry Advance/ falloff from 1973-79 to 1979-86 1973-79 1979-86 3.3 4.7 1.4 Motor vehicles and e q uipm e nt.............................. Instruments to measure electricity1 .............................. Railroad transportation, revenue tra ffic ...................................... Class I bus carriers1 ................. Intercity trucking1........................ 1.9 4.7 2.8 2.1 -1.6 1.1 8.7 -1.7 .5 6.6 -0.1 -0.6 Air transportation ..................... Petroleum pipelines ................. Telephone communications . . . Electric u tilitie s .......................... Gas u tilitie s ................................ 5.3 1.1 7.2 1.9 -0.2 4.2 2.0 5.2 0.0 -4.5 -1.1 .9 -2.0 -1.9 -4.3 Hardware s to re s ....................... Department stores ................... Retail food s to r e s ..................... Franchised new car dealers . . . Gasoline service s ta tio n s ........ 2.0 3.5 -1.4 .4 3.9 -0.6 -1.6 .5 .9 2.2 1.4 4.1 3.0 -1.1 2.1 5.0 3.0 2.2 1.9 -0.2 1.3 -0.7 4.1 -0.7 -1.0 1.0 1.6 2 .3 .7 2.2 0.0 -2 .2 .4 .9 -1.2 -1.6 -2.0 Apparel and accessory stores .................................... Furniture, home furnishings and equipment stores ................. Eating and drinking places . . . . Drug and proprietary stores . . . Liquor s to re s .............................. Commercial banking1 ............... Hotels, motels, and tourist courts .................................... Laundry and cleaning services.................................. Beauty and barber s h o p s ........ Automotive repair s h o p s ........... -0.5 -0.9 -1.1 -0.7 .8 -2 .3 1.8 .2 68 Table 6. Output per hour of all persons, output per unit of capital, and multifactor productivity, private business sector, 1960-86 (Index i960 = 100) Year Output per hour of all persons Output per unit of capital Multifactor productivity 1960 1961 1962 1963 1964 ................................................. ................................................. ................................................. ................................................. ................................................. 100.0 103.6 107.4 111.7 116.6 100.0 99.9 102.4 104.2 106.9 100.0 102.3 105.6 109.0 113.0 1965 1966 1967 1968 1969 ................................................. ................................................. ................................................. ................................................. ................................................. 120.0 123.3 126.6 130.2 130.3 109.0 109.0 106.6 106.7 104.9 115.9 117.9 118.9 121.1 120.4 1970 1971 1972 1973 1974 ................................................. ................................................. ................................................. ................................................. ................................................. 131.3 135.6 139.7 142.5 139.5 99.8 99.1 101.7 103.1 96.7 119.0 121.2 124.7 126.9 122.3 1975 1976 1977 1978 1979 ................................................. ................................................. ................................................. ................................................. ................................................. 142.3 146.2 148.6 149.8 147.9 91.9 95.2 98.0 99.9 97.8 121.7 125.4 128.0 129.6 127.6 1980 1981 1982 1983 1984 ................................................. ................................................. ................................................. ................................................. ................................................. 147.4 149.5 149.0 153.2 157.0 92.3 90.5 84.9 86.6 90.9 124.7 125.1 122.0 125.0 129.3 1985 ................................................. 1986 ................................................. 159.9 163.0 90.9 90.9 130.8 132.4 69 Table 7. Output per hour of all persons, capital effects, and multifactor productivity, selected periods, 1960-86 (Average annual rates, in percent) Year Output per hour of all persons Multifactor productivity growth Capital effects Private business 1960-73 ................................................... 1973-79 ................................................... 1979-86 ................................................... 2.7 .6 1.4 1.8 .1 .5 0.9 .5 .9 Manufacturing 1960-73 ................................................... 1973-79 ................................................... 1979-86 ................................................... 3.2 1.4 3.5 2.4 .5 2.6 .8 .9 .9 70 Table 8. Output per hour and multifactor productivity in selected manufacturing industry sectors, selected periods (Average annual rates) 1960-83 Industry Total manufacturing . . . . Food and kindred p ro d u c ts ............... Tobacco manufactures . . . . Textile mill p ro d u c ts ............... Apparel and other textile products .. . Lumber and wood p ro d u c ts ............... Furniture and fixtures ................. Paper and allied p ro d u c ts ............... Printing and pu b lish in g ............. Chemicals and allied p ro d u c ts ............... Petroleum and coal p ro d u c ts ............... Rubber and miscellaneous plastics products .. Leather and leather p ro d u c ts ............... Stone, clay, and glass products . . . Primary metal industries ............. Fabricated metal p ro d u c ts ............... Machinery, except e le c tric a l............... Electrical and electronic equipm ent............. Transportation equipm ent............. Instruments and related products . . Micellaneous manufacturing . . . . 1960-73 1973-83 Output per hour Multifactor productivity Output per hour Multifactor productivity Output per hour 2.4 1.1 2.9 1.7 1.6 .3 2.8 .6 2.6 .8 3.1 .5 1.8 -0.3 2.4 .8 1.1 -1.7 4.2 1.6 4.2 1.6 4.2 1.7 2.5 1.0 2.1 1.1 3.0 .9 2.9 1.5 4.3 3.0 1.1 -0.5 2.3 .8 2.8 1.0 1.7 .4 3.0 .9 3.6 1.4 2.3 .2 1.7 .2 2.6 .6 .6 -0.3 3.1 .8 4.9 1.7 .8 -0.4 1.9 .2 4.5 1.1 -1.3 -0.9 2.1 .9 3.2 1.5 .6 .7 1.9 .5 2.3 .7 1.3 .2 1.4 .1 2.2 .7 .5 -0.7 1.1 -0.6 2.6 .6 -0.7 -2.1 1.4 .3 1.8 .5 .9 -0.2 3.4 1.6 3.7 1.8 3.1 1.4 4.2 2.4 4.7 2.8 3.6 2.0 2.5 .9 4.1 1.4 .5 .3 3.3 1.4 4.1 2.0 2.3 .7 2.1 .2 3.6 1.1 .2 -1.0 Multifactor productivity 71 Table 9. Output per hour and multifactor productivity in four industries, 1960-85 (Indexes, 1960 = 100) Iron and Steel Year Output per hour Motor Vehicles Multifactor productivity Output per hour Tires and Tubes Multifactor productivity Output per hour Footwear Multifactor productivity Output per hour Multifactor productivity 1960 1961 1962 1963 1964 ................... ................... ................... ................... ................... 100.0 103.9 106.9 112.9 119.1 100.0 101.6 102.2 106.4 114.0 100.0 101.2 110.9 115.7 116.6 100.0 99.5 108.4 113.5 113.1 100.0 103.4 113.7 122.1 133.0 100.0 101.2 105.9 109.5 115.8 100.0 100.7 101.5 105.4 105.1 100.0 101.5 101.8 102.3 101.3 1965 1966 1967 1968 1969 ................... ................... ................... ................... ................... 123.3 126.3 122.5 124.9 127.7 117.3 117.3 108.0 108.6 109.9 124.4 124.4 124.8 135.5 132.6 117.4 114.8 109.7 118.3 118.9 135.5 138.0 137.7 147.1 142.5 114.8 113.2 107.6 113.5 109.0 104.0 105.8 103.6 107.3 100.4 99.1 99.8 91.0 93.3 87.5 1970 1971 1972 1973 1974 ................... ................... ................... ................... ................... 125.3 131.1 139.3 150.0 158.1 108.1 109.8 112.3 120.9 128.7 127.3 148.0 151.0 153.5 146.5 110.2 115.4 120.2 124.5 123.3 146.1 156.6 162.6 158.0 154.4 107.9 114.5 116.7 115.7 113.3 108.1 110.0 107.3 106.2 104.9 89.3 88.5 87.4 87.0 84.2 1975 1976 1977 1978 1979 ................... ................... ................... ................... ................... 138.7 144.2 144.5 152.0 154.0 111.2 117.2 116.3 121.9 121.4 157.0 167.7 178.3 177.5 173.8 125.5 131.9 134.8 134.9 133.2 152.1 166.5 167.5 181.1 180.2 108.9 113.2 124.7 129.2 131.8 109.2 109.8 111.9 113.9 111.5 83.6 85.6 86.1 87.5 91.7 1980 1981 1982 1983 1984 1985 ................... ................... ................... ................... ................... ................... 152.9 162.0 141.8 172.7 189.7 203.0 119.1 118.1 112.1 133.7 138.8 143.7 160.1 164.0 171.5 195.0 205.5 216.0 120.8 121.7 122.5 130.3 136.3 141.6 171.2 197.8 215.7 228.8 247.4 246.7 128.8 138.4 146.3 157.0 163.8 161.1 109.6 106.3 118.6 116.4 117.4 117.9 85.4 82.3 86.4 85.4 84.0 78.7 72 Table 10. Output per employee year, output, and employee years in the Federal Government, measured sample, fiscal years 1967-86 (Index, 1967 = 100) Fiscal year Output per employee year Output Employee years 1967 ................................................................ 1968 ................................................................ 1969 ................................................................ 100.0 101.1 103.5 100.0 103.7 107.1 100.0 102.6 103.4 1970 1971 1972 1973 1974 ................................................................ ................................................................ ................................................................ ................................................................ ................................................................ 104.0 105.6 106.3 109.3 108.7 107.4 108.8 109.0 110.7 110.9 103.3 103.0 102.5 101.3 102.0 1975 1976 1977 1978 1979 ................................................................ ................................................................ ................................................................ ................................................................ ................................................................ 110.3 112.2 115.5 117.5 118.2 112.8 113.7 115.7 118.4 119.2 102.2 101.3 100.1 100.8 100.9 1980 1981 1982 1983 1984 ................................................................ ................................................................ ................................................................ ................................................................ ................................................................ 120.7 123.6 125.4 127.5 127.8 122.7 124.5 126.0 129.3 132.3 101.6 100.7 100.4 101.4 103.6 1985 ................................................................ 1986 ................................................................ 128.6 130.8 135.9 139.0 105.6 106.3 73 Table 11. Output per employee year by functional grouping, and total measured sample, Federal Government, fiscal years 1967-86 (Average annual percent change) Functional groupings Output per employee year Total Federal Sample ........................................ Audit of operations ..................................................... Buildings and grounds................................................. Communications1 ....................................................... Education and training2 ............................................. Electric power production and distribution ............... 1.5 1.0 3.5 10.9 1.8 -2.9 Equipment maintenance2 ........................................... Finance and a cco unting............................................. General support s e rv ic e s ........................................... Information s e rv ic e s ................................................... Legal and judicial a c tivitie s......................................... 1.0 4.7 4.4 1.1 .2 Library services .......................................................... Loans and grants ........................................................ Medical s e rvice s.......................................................... Military base s e rv ic e s ................................................. Natural resources and environmental m anagem ent............................................................ 4.6 3.3 .3 .4 Personnel investigations............................................. Personnel m anagem ent............................................. Postal s e rv ic e .............................................................. Printing and duplication ............................................. P rocurem ent................................................................ 2.6 1.0 1.3 .3 2.7 Records management ............................................... Regulation - compliance and enforcem ent............... Regulation - rulemaking and licensing ..................... Social services and b e n e fits ...................................... Specialized m anufacturing......................................... 3.3 2.7 3.5 2.3 3.3 Supply and inventory control .................................... Traffic management3 ................................................. Transportation ............................................................ 1.3 1.9 2.4 1Fiscal years 1973-86 2Fiscal years 1968-86 3Fiscal years 1972-86 1.5 74 Table 12. Trends in real gross domestic product per employed person, selected countries, 1960-86 (Index, 1960 = 100) Year United States Canada Japan France Germany Italy United Kingdom 1960 1961 1962 1963 1964 ....................... ....................... ....................... ....................... ....................... 100.0 102.5 106.0 108.8 112.2 100.0 101.5 105.8 108.8 112.1 100.0 113.1 119.7 131.1 146.3 100.0 105.5 112.6 117.7 124.0 100.0 103.2 107.7 110.1 117.3 100.0 107.5 114.5 123.0 126.9 100.0 102.2 102.8 106.9 110.9 1965 1966 1967 1968 1969 ....................... ....................... ....................... ....................... ....................... 115.8 119.1 119.6 122.0 122.0 115.3 118.3 118.4 122.5 125.2 151.4 163.9 177.9 196.9 218.9 129.5 135.2 141.2 147.7 155.6 123.0 132.0 130.9 138.2 146.3 134.3 144.7 153.2 163.3 174.5 112.4 114.3 118.8 124.3 126.0 1970 1971 1972 1973 1974 ....................... ....................... ....................... ....................... ....................... 121.0 123.8 126.1 128.1 124.9 127.2 131.5 135.1 138.7 139.1 237.7 246.0 266.1 279.8 277.4 162.3 170.3 179.3 186.3 190.7 151.9 155.4 162.4 168.9 171.6 182.9 186.1 195.5 207.5 212.0 129.3 134.7 137.0 144.8 143.0 1975 1976 1977 1978 1979 ....................... ....................... ....................... ....................... ....................... 125.0 126.9 128.1 129.2 128.3 140.3 146.1 148.6 150.2 150.0 285.6 296.5 308.1 319.8 332.3 192.6 201.1 205.6 211.6 218.3 173.8 184.8 190.5 194.8 200.2 203.2 213.7 215.6 221.1 229.4 143.0 149.6 151.0 155.1 156.6 1980 1981 1982 1983 1984 ....................... ....................... ....................... ....................... ....................... 127.5 128.6 126.4 129.5 133.1 147.8 149.1 149.2 152.6 158.3 343.5 353.8 360.2 365.5 381.6 221.7 225.7 231.0 233.6 239.0 200.8 202.5 204.6 210.7 216.2 235.0 237.1 238.0 238.7 245.7 154.7 158.5 161.6 168.4 169.2 1985 ....................... 1986 ....................... 134.8 136.0 160.5 161.3 396.1 402.5 244.0 248.5 220.4 223.7 251.2 256.6 173.1 176.6 75 Table 13. Relative levels in gross domestic product per employed person,1 selected countries, 1960-86 (Index, United States = 100) Year United States Canada Japan France G erm any Italy United Kingdom 1960 1961 1962 1963 1964 .......................... .......................... .......................... .......................... .......................... 100.0 100.0 100.0 100.0 100.0 80.1 79.2 79.9 80.0 80.1 23.3 25.7 26.3 28.0 30.4 46.1 47.5 49.0 49.9 51.0 49.2 49.5 49.9 49.7 51.4 43.9 46.1 47.5 49.7 49.7 54.2 54.1 52.6 53.3 53.6 1965 1966 1967 1968 1969 .......................... .......................... .......................... .......................... .......................... 100.0 100.0 100.0 100.0 100.0 79.7 79.5 79.2 80.4 82.2 30.4 32.0 34.6 37.6 41.8 51.6 52.4 54.5 55.8 58.8 52.2 54.5 53.8 55.7 58.9 51.0 53.4 56.3 58.8 62.8 52.6 52.0 53.8 55.3 56.0 1970 1971 1972 1973 1974 .......................... .......................... .......................... .......................... .......................... 100.0 100.0 100.0 100.0 100.0 84.1 85.1 85.8 86.7 89.2 45.7 46.3 49.1 50.8 51.7 61.9 63.5 65.6 67.1 70.4 61.7 61.7 63.3 64.8 67.5 66.4 66.1 68.1 71.2 74.6 57.9 59.0 58.9 61.3 62.1 1975 1976 1977 1978 1979 .......................... .......................... .......................... .......................... .......................... 100.0 100.0 100.0 100.0 100.0 89.9 92.2 92.9 93.1 93.6 53.2 54.4 56.0 57.6 60.3 71.1 73.1 74.0 75.5 78.5 68.4 71.6 73.1 74.1 76.7 71.4 74.0 74.0 75.2 78.5 62.0 63.9 63.9 65.1 66.2 1980 1981 1982 1983 1984 .......................... .......................... .......................... .......................... .......................... 100.0 100.0 100.0 100.0 100.0 92.8 92.8 94.5 94.4 95.2 62.7 64.1 66.3 65.7 66.7 80.2 81.0 84.3 83.2 82.8 77.4 77.5 79.6 80.0 79.9 81.0 81.0 82.7 81.0 81.1 65.8 66.8 69.3 70.5 68.9 1985 .......................... 1986 .......................... 100.0 100.0 95.3 95.0 68.4 68.9 83.5 84.3 80.4 80.9 81.9 82.9 69.6 70.4 O utput based on price weights of the Organization fo r Econom ic Cooperation and Developm ent. 76 Table 14. Trends in output per employee hour in manufacturing, selected countries, 1960-86 (Index, 1960 = 100) Year United States Canada Japan France G erm any United Kingdom 1960 1961 1962 1963 1964 .......................... .......................... .......................... .......................... .......................... 100.0 102.8 107.2 114.5 119.9 100.0 105.4 112.8 116.9 122.4 100.0 113.3 118.1 127.7 144.7 100.0 105.8 112.2 117.6 126.4 100.0 104.5 111.7 116.4 126.1 100.0 100.1 102.3 107.7 114.9 1965 1966 1967 1968 1969 .......................... .......................... .......................... .......................... .......................... 123.1 124.4 124.3 128.3 129.8 128.2 131.1 133.6 143.3 151.0 150.8 166.1 190.5 214.5 247.8 135.1 145.6 154.6 171.0 180.6 133.8 139.5 149.0 160.8 171.3 118.4 122.3 128.0 137.4 140.7 1970 1971 1972 1973 1974 .......................... .......................... .......................... .......................... .......................... 129.8 137.1 143.1 150.1 145.7 149.1 159.6 167.4 178.1 180.9 279.3 295.7 324.5 357.9 372.6 190.9 201.4 213.3 225.7 234.1 176.4 183.5 195.4 208.2 216.5 143.8 150.5 159.0 170.7 173.5 1975 1976 1977 1978 1979 .......................... .......................... .......................... .......................... .......................... 149.3 156.1 160.7 163.1 163.0 174.7 186.9 197.2 199.4 201.3 377.9 406.3 431.0 465.4 494.6 242.9 260.8 274.4 287.1 301.1 223.4 239.1 247.8 255.6 268.1 169.6 177.2 178.8 181.5 183.2 1980 1981 1982 1983 1984 .......................... .......................... .......................... .......................... .......................... 163.0 166.6 170.2 180.0 189.9 193.6 203.0 193.8 207.9 230.4 528.6 548.3 581.6 613.1 657.2 303.5 312.7 334.8 343.5 354.1 269.1 275.0 279.0 295.4 306.4 182.0 191.3 202.9 220.2 232.1 1985 .......................... 1986 .......................... 199.6 207.0 236.1 235.5 705.3 724.9 365.1 372.1 319.0 323.7 240.9 249.4 Table 15. Output per employee hour in manufacturing, selected countries, selected periods, 1960-86 (Average annual rate of change, in percent) M anufacturing output per hour C ountry 1960-86 United States ............................ Canada ........................................ Japan .......................................... France ........................................ G e rm a n y ..................................... United K ingdom ....................... 2.8 3.1 7.9 5.3 4.6 3.6 1960-73 3.2 4.5 10.3 6.5 5.8 4.3 1973-79 1979-86 1.4 2.1 5.5 5.0 4.3 1.1 3.5 1.4 5.6 3.6 2.8 4.4 77 Table 16. Output per hour of all persons, unit labor costs, and compensation per hour in the business economy, 1960-86 (Percent change from previous year) O utput per hour Year Unit labor costs C om pensation per hour of all persons 1960 1961 1962 1963 1964 ........................................................................ ........................................................................ ........................................................................ ........................................................................ ........................................................................ 1.7 3.5 3.6 4.0 4.3 2.6 .3 1.1 -0.2 .8 4.3 3.9 4.7 3.8 5.2 1965 1966 1967 1968 1969 ........................................................................ ........................................................................ ........................................................................ ........................................................................ ........................................................................ 3.0 2.8 2.7 2.7 .1 .9 4.1 2.6 5.0 6.9 3.8 6.9 5.4 7.9 7.0 1970 1971 1972 1973 1974 ........................................................................ ........................................................................ ........................................................................ ........................................................................ ........................................................................ .7 3.2 3.0 2.0 -2.1 6.5 3.1 3.3 6.2 11.9 7.3 6.4 6.4 8.3 9.5 1975 1976 1977 1978 1979 ........................................................................ ........................................................................ ........................................................................ ........................................................................ ........................................................................ 2.0 2.8 1.7 .8 -1.2 7.6 5.9 6.0 7.6 11.1 9.7 8.9 7.8 8.5 9.7 1980 1981 1982 1983 1984 ........................................................................ ........................................................................ ........................................................................ ........................................................................ ........................................................................ -0.3 1.4 -0.4 2.7 2.5 10.9 7.7 8.3 1.4 1.5 10.5 9.2 7.8 4.2 4.1 1985 ........................................................................ 1986 ........................................................................ 1.8 2.8 2.0 4.7 1.9 3.9 78 Table 17. Composition of price change, business economy, 1960-86 (Percent change) Point contribution to percent change Year Implicit price deflator Unit nonlabor Unit labor costs paym ents 1960 1961 1962 1963 1964 ......................................................................... ......................................................................... ......................................................................... ......................................................................... ......................................................................... 1.4 .5 1.9 .9 1.0 1.7 .2 .7 -0.1 .5 -0.2 .3 1.2 1.0 .5 1965 1966 1967 1968 1969 ......................................................................... ......................................................................... ......................................................................... ......................................................................... ......................................................................... 2.3 3.3 2.5 4.6 5.1 .5 2.6 1.7 3.2 4.5 1.8 .8 .8 1.4 .6 1970 1971 1972 1973 1974 ......................................................................... ......................................................................... ......................................................................... ......................................................................... ......................................................................... 4.7 4.9 4.0 6.4 9.6 4.3 2.0 2.1 4.0 7.9 .5 3.0 1.9 2.4 1.8 1975 1976 1977 1978 1979 ......................................................................... ......................................................................... ......................................................................... ......................................................................... ......................................................................... 10.3 5.9 6.4 7.3 9.0 4.9 3.8 3.9 4.9 7.3 5.5 2.1 2.5 2.4 1.8 1980 1981 1982 1983 1984 ......................................................................... ......................................................................... ......................................................................... ......................................................................... ......................................................................... 9.0 9.6 5.9 3.3 3.3 7.3 5.0 5.6 1.0 1.0 1.8 4.6 .5 2.4 2.4 1985 ......................................................................... 1986 ......................................................................... 2.7 2.1 1.8 1.3 .9 .8 Table 18. Output per hour of all persons, compensation per hour, unit labor costs, and prices in major sectors, 1979-86 (Average annual percent change) Sector Communications................................ F arm ................................................... Manufacturing..................................... Transportation ................................... Trade ................................................. Electric, gas, and sanitary services........................................... M ining................................................. Output per hour of all persons Compensation per hour Unit labor costs Prices 4.0 7.9 3.5 -0.6 2.0 7.0 2.0 6.4 5.3 6.0 2.9 -5.5 2.8 5.9 3.9 5.7 -4.0 3.3 6.6 4.3 1.3 1.6 7.6 7.1 6.2 5.4 8.9 5.4 79 Table 19. Output per employee hour and compensation per employee hour, selected manufacturing industries, 1972-85 (Average annual percent change) Industry Red meat p r o d u c ts ............ Poultry dressing and p ro c e s s in g ....................... Fluid m ilk ............................ Preserved fruits and v e g e ta b le s ....................... Grain mill p r o d u c t s ............ Bakery p r o d u c t s ................ Sugar ................................... Malt b e v e ra g e s ................... Bottled and canned soft d r in k s ....................... Total tobacco products .......................... Cotton and synthetic broad w oven f a b r ic s .............................. H o s ie r y ................................. Nonwool yarn m i l l s ............ Saw m ills and planing mills, g e n e ra l................... M illwork .............................. O utput per em ployee hour Com pensation per hour 3.1 6.7 4.1 4.9 7.9 8.6 1.9 4.3 8.8 9.0 1.1 .6 5.6 8.5 8.4 9.5 5.0 8.7 1.5 12.8 3.7 3.8 3.3 2.3 8.5 7.7 8.6 -1.4 7.9 8.4 1.2 7.0 2.6 8.6 1.3 W ood kitchen c a b in e ts ............................ Veneer and p ly w o o d ............................ Household fu rn itu re ............................ O ffice furniture ................... Paper, paperboard, and pulp m ills .......................... 2.6 7.3 8.7 2.7 9.9 Paper and plastic bags ................................. .7 8.3 Industry Folding paperboard boxes .............................. Industrial inorganic chem icals ....................... Synthetic f ib e r s ................... P harm aceutical preparations ................... Soaps and d e te rg e n ts ....................... Cosm etics and other to ile trie s ............................ Paints and allied products .......................... Industrial organic chem icals, N .E .C ............. Petroleum refining ............ Tires and inner t u b e s ................................. M iscellaneous plastics products .......................... O utput per em ployee hour Com pensation per hour .7 8.3 0.0 4.7 9.8 9.7 2.3 9.0 .3 8.7 -0.6 7.1 2.4 8.5 1.7 .1 9.2 9.4 3.7 9.4 2.1 8.3 Footw ear ............................ Glass c o n ta in e rs ................ H ydraulic c e m e n t .............. S tructural clay products .......................... C lay construction products .......................... .5 2.3 1.8 7.5 9.7 8.7 1.6 8.6 1.6 8.0 Clay r e fra c to rie s ................ Concrete products ............ Ready-m ixed concrete .......................... C orrugated and solid fiber boxes ..................... S t e e l..................................... 1.8 10.0 .4 7.4 -0.6 7.0 2.9 8.4 7.6 1.8 80 Table 19. Output per employee hour and compensation per employee hour, selected manufacturing industries, 1972-85 (continued) (Average annual percent change) Industry G ray iron fo u n d r ie s ............ Steel f o u n d r ie s ................... Prim ary copper, lead, and z in c ............................ Prim ary a lu m in u m .............. C opper rolling and d r a w in g ............................ A lum inum rolling and d r a w in g ............................ Metal cans .......................... Hand and edge tools ................................. Heating equipm ent, except e le c t r ic ................ Fabricated structural m e t a l................................. Metal doors, sash, and t r i m ............................ Metal s ta m p in g ................... Valves and pipe f it t in g s ............................... Fabricated pipe and f it t in g s .............................. Internal com bustion engines, N .E .C ................. Farm and garden m a c h in e r y ....................... C onstruction m achinery and equipm ent .............. M ining m achinery and e q u ip m e n t....................... O ilfield m achinery and e q u ip m e n t........................ O utput per em ployee hour .6 C om pensation per hour -1.1 8.7 8.2 5.1 12.1 1.4 10.6 3.0 8.0 1.8 3.7 9.4 9.8 -0.8 7.8 1.6 7.0 0.0 7.3 .9 .8 8.2 8.1 .7 8.7 -1.6 8.0 .4 9.5 .4 8.5 .2 9.4 -1.0 9.4 -1.7 9.2 Industry M achine t o o l s ..................... M achine tool a c c e s s o rie s ..................... Pum ps and c o m p re s s o rs ................... Ball and roller bearings .......................... R efrigeration and heating e q u ip m e n t........................ Transform ers ..................... S w itchgear and sw itchboard apparatus ........................ M otors and g e n e ra to rs ........................ M ajor household a p p lia n c e s ........................ Electric la m p s ..................... Lighting fixtures ................ Radio and television receiving sets ................ S em iconductors and related devices .............. M otor vehicles and e q u ip m e n t........................ Instrum ents to m easure e le c tric ity .......................... O utput per em ployee hour C om pensation per hour -1.3 8.4 -1.1 7.7 .9 9.2 -1.1 7.8 .1 .6 8.6 8.4 .9 8.4 .8 8.8 2.8 8.4 2.8 .7 9.6 7.9 8.7 9.7 14.1 10.4 2.4 8.5 3.3 9.5 81 Table 20. Output per employee hour and prices, selected industries, 1965-85 (Average annual percent change) Industry Iron mining, usable o r e ................... Bitum inous coal and lignite m in in g ............................................ Red meat products1 ....................... Poultry dressing and p ro c e s s in g ..................................... Fluid milk .......................................... Output per em ployee hour Prices Industry O utput per em ployee hour Prices 2.0 7.0 Pharm aceutical preparations ................................. 3.4 5.1 -0.4 2.9 10.9 5.8 3.2 5.0 3.9 5.0 2.5 3.5 1.5 1.6 6.5 S oaps and detergents ................... C osm etics and other to ile trie s .......................................... Paints and allied products ............ Industrial organic chem icals, N .E .C ................................................ 1.8 6.2 1.7 2.4 5.3 6.4 3.8 8.0 6.6 5.1 7.1 7.4 4.5 Footwear .......................................... Glass c o n ta in e rs .............................. H ydraulic cem ent ............................ Structural clay products ................ .4 2.1 1.9 2.5 6.3 8.1 8.3 7.0 4.1 1.5 5.8 2.5 7.5 3.6 1.9 5.1 C oncrete products .......................... S t e e l................................................... G ray iron fo u n d r ie s ......................... Steel f o u n d r ie s ................................. Prim ary c o p p e r ................................. 1.2 1.8 1.4 .1 3.8 7.0 8.4 8.2 8.2 3.7 2.1 7.9 1.5 7.9 M illwork ............................................ Veneer and p ly w o o d ....................... H ousehold furniture ....................... O ffice furniture ................................. Paper, paperboard, and pulp m ills ........................................ -0.2 3.2 2.0 1.9 8.0 6.0 4.9 6.9 Prim ary a lu m in u m ............................ C opper rolling and d r a w in g .......................................... Alum inum rolling and d r a w in g .......................................... Metal cans ........................................ Hand and edge tools ..................... 1.9 4.6 3.6 3.0 0.0 7.3 7.8 8.1 3.2 .4 Paper and plastic b a g s ................... Folding paperboard boxes ............................................ C orrugated and solid fiber boxes ............................................ Synthetic f ib e r s ................................. 1.9 7.1 .3 7.5 1.8 6.3 3.7 6.4 6.2 3.4 1.1 1.0 .6 7.6 7.1 7.8 Preserved fruits and v e g e ta b le s ..................................... Grain mill products .......................... Bakery p r o d u c t s .............................. Sugar ................................................. Malt b e v e ra g e s ................................. Bottled and canned soft drinks ............................................ Total tobacco p r o d u c ts ................... H o s ie r y ............................................... Nonwool yarn m i l l s .......................... Saw m ills and planing mills, general .......................................... Fabricated structural m e t a l............................................... Metal doors, sash, and trim 1 ............................................... Metal s ta m p in g s .............................. Valves and pipe fittin g s ................... 82 Table 20. Output per employee hour and prices, selected industries, 1965-85 (continued) (Average annual percent change) Industry O utput per em ployee hour Prices Fabricated pipe and f it t in g s ............................................. -0.6 8.8 1.6 1.7 8.7 7.0 1.1 8.3 .3 -0.5 10.1 8.5 .6 Internal com bustion engines, N .E .C .1 .......................... Farm and garden m achinery . . . . C onstruction m achinery and e q u ip m e n t..................................... Oilfield m achinery and e q uipm e nt1 ................................... Machine t o o l s ................................... M achine tool a c c e s s o rie s .............. Pum ps and com pressors .............. Ball and roller b e a rin g s ................... 1.4 .3 6.7 7.2 7.8 Petroleum refining .......................... Tires and inner tubes ..................... Transform ers ................................... 1.7 2.8 1.5 13.6 6.0 5.6 Sw itchgear and sw itchboard apparatus ..................................... Motors and g e n e ra to rs ................... M ajor household a p p lia n c e s ..................................... Electric la m p s ................................... Lighting fixtures .............................. Radio and television receiving sets .............................. M otor vehicles and e q u ip m e n t..................................... Railroad transportation, revenue t r a f f ic .............................. C lass I bus c a r rie rs .......................... Air transportation ............................ 11967-85 1.8 1.0 6.6 7.8 3.6 4.9 7.7 6.4 1.9 1.6 6.6 -0.7 2.6 6.4 3.9 -1.3 4.3 9.5 9.0 8.8 Industry O utput per em ployee hour Prices Telephone com m unications .......................... Electric u t ilit ie s ................................. G as u tilitie s ........................................ D epartm ent sto re s1 ........................ Retail food stores ............................ 5.9 2.2 -0.2 2.7 -0.4 3.4 7.8 11.1 4.8 6.8 1.5 3.8 5.6 8.7 3.6 3.4 2.4 3.6 5.5 3.9 1.3 2.7 3.6 4.5 1.1 5.4 4.8 3.2 3.1 4.2 2.0 4.9 -0.1 7.6 2.8 5.4 1.3 7.8 -0.1 7.8 Franchised new car dealers .......................................... G asoline service s t a t io n s .............. Apparel and accessory stores1 ............................................. M e n’s and bo ys’ clothing stores1 ............................................. W om en ready-to-w ear stores1 ............................................. Fam ily clothing s to re s1 ................... S hoe stores1 ...................................... R efrigeration and heating e q uipm e nt1 ................................... Appliance, radio, television and m usic s to re s1 ........................ Furniture, hom e furnishings and equipm ent s to re s1 .............. Furniture and hom e furnishings s to re s1 ..................... Eating and drinking p la c e s ............ Drug and proprietary stores ............................................. Hotels, m otels, and tourist c o u r t s ................................. Laundry and cleaning s e r v ic e s .......................................... 83 Table 21. Output per employee hour and employment, selected industries, 1973-86 (Average annual percent change) Industry Iron m ining, usable o r e ................... C opper m ining, recoverable m e t a l............................................... Bitum inous coal and lignite m in in g ............................................ N onm etallic m inerals, except fuels ............................................... Red meat p r o d u c ts .......................... Poultry dressing and processing1 ................................... Fluid m ilk1 .......................................... Preserved fruits and veg etab le s1 ................................... G rain mill products1 ....................... Bakery products1 ............................ Productivity 1973-86 Hours 1973-86 3.4 -8.8 7.4 -8.9 2.9 .4 .8 3.2 -1.1 -1.0 4.5 5.0 2.2 -4.3 1.7 4.6 1.2 -0.5 -1.3 1.2 .7 4.9 -3.1 -1.9 5.0 0.0 1.6 -2.4 4.1 -3.6 3.1 3.4 .5 -2.3 3.3 -1.2 1.2 -2.2 1.1 3.9 Veneer and p lyw oo d1 ..................... H ousehold furniture ....................... O ffice furniture ................................. Paper, paperboard, and pulp m ills ........................................ 2.8 1.4 2.7 -2.1 -1.1 4.7 2.8 -0.9 Paper and plastic b a g s ................... Folding paperboard boxes ............ .5 .5 .2 .3 S ugar ................................................. Malt b e v e ra g e s ................................. Bottled and canned soft drinks ..................................... Total tobacco products ........................................ Cotton and synthetic broad w oven fabrics .............................. H o s ie r y ............................................... Nonwool yarn m i l l s .......................... Saw m ills and planing mills, general .......................................... M illw ork1 ............................................ W ood kitchen ca b in e ts1 ................ P roductivity 1973-86 Hours 1973-86 2.6 -0.2 0.0 4.7 -0.4 -4.3 2.2 -0.1 .1 1.0 -1.0 2.5 2.6 -1.6 1.4 .5 -0.2 -0.7 Tires and inner tubes ..................... M iscellaneous plastics products1 ........................................ Footw ear .......................................... G lass c o n ta in e rs .............................. H ydraulic cem ent ............................ 4.2 -4.9 2.1 .6 2.5 2.5 3.5 -5.3 -3.7 -3.0 S tructural clay products ................ C oncrete products1 .......................... S t e e l................................................... G ray iron fo u n d r ie s ......................... Steel fo u n d r ie s ................................. 1.7 .3 2.3 .5 -1.3 -3.5 -1.7 -6.0 -5.0 -4.1 6.2 18 3.4 -10.0 -3 1 -4.7 1.9 3.6 -0.9 -3.1 -0.8 -0.5 1.7 -1.7 Industry Corrugated and solid fiber boxes ............................................ Industrial inorganic che m icals1 ................................... Synthetic f ib e r s ................................. P harm aceutical preparations ................................ Soaps and de terg ents1 ................... C osm etics and other to ile trie s1 ........................................ Paints and allied products ............ Industrial organic chem icals N .E .C .1 ....................... P etroleum refining .......................... Prim ary copper, lead, and z i n c ................................................. Prim ary alum inum C opper rolling and d r a w in g ............ A lum inum rolling and d r a w in g .......................................... Metal cans ........................................ Hand and edge to o ls 1 ..................... H eating equipm ent, except electric1 .......................................... 84 Table 21. Output per employee hour and employment, selected industries, 1973-86 (continued) (Average annual percent change) Industry Productivity 1973-86 Flours 1973-86 Fabricated structural metal1 ........ Metal doors, sash, and trim1 ........ Metal stampings1 ........................ .3 1.1 .9 -0.7 1.1 -0.4 Valves and pipe fittings1 .............. Fabricated pipe and fittings1 ........ Internal combustion engines, N.E.C.1 ..................................... Farm and garden machinery1 . . . . Construction machinery and .8 -1.7 0.0 2.6 .2 .2 -0 9 -4.5 .3 -5.4 -1.2 -4.4 -2.5 -1.4 1.4 -4.1 -1.3 .8 -0.3 -0.5 Ball and roller bearings................ Refrigeration and heating equipment1 .............................. Transformers .............................. Switchgear and switchboard apparatus ................................. Motors and generators1 .............. -1.1 -2.0 .3 .7 .3 -1.1 1.3 .9 -1.7 -1.7 Major household appliances........ Electric lam ps............................... Lighting fixtures1 .......................... Radio and television receiving sets .......................... Semiconductors and related devices ..................................... 3.1 2.9 .7 -1.4 -3.3 .3 9.6 -5.2 12.8 6.9 Motor vehicles and equipment................................. 2.7 -0.9 Mining machinery and equipment1 .............................. Oilfield machinery and equipment................................. Machine to o ls ............................... Machine tools and accessories1 ............................ Pumps and compressors ............ 1973-85 Industry Productivity 1973-86 Flours 1973-86 Instruments to measure electricity1 ................................. Railroad transportation, revenue tra ffic ........................... Class I bus carriers1 .................... Intercity trucking1 ......................... 3.3 4.3 5.1 -1.2 .4 -4.8 -1.8 -0.9 Air transportation ...................... Petroleum pipelines .................... Telephone communications........ Electric utilities ........................... Gas utilities ................................. 3.9 .4 6.0 .2 -2.3 1.5 1.1 .2 2.6 .6 Flardware s to re s........................... Department stores ....................... Retail food s to re s ......................... Franchised new car dealers ..................................... Gasoline service sta tio n s............ 1.5 3.1 -0.9 .7 .1 1.9 1.3 3.1 -0.1 -3.6 4.0 1.6 3.2 -0.6 .6 .6 1.6 3.4 .4 -0.5 .9 3.1 .3 3.5 -1.2 .4 -1.3 -0.8 .4 4.3 Apparel and accessory stores ....................................... Furniture, home furnishings & equipment stores ..................... Eating and drinking p la c e s .......... Drug and proprietary stores ........ Liquor stores................................. Commercial banking1 .................. Flotels, motels, and tourist c o u rts ............................. Laundry and cleaning services..................................... Beauty and barber s h o p s ............ Automotive repair shops.............. 85 Table 22. Output and employment in selected industries with similar productivity growth, 1960-85 (Average annual rates of change) Output per employee hour Output Employee hours Gas utilities................................................................. Drug and proprietary stores ...................................... Pulp and paper m ills .................................................. 3.3 3.5 3.5 5.6 3.4 2.8 2.2 -0.1 -0.7 Machine to o ls ............................................................. Eating and drinking p la ce s........................................ Laundry and drycleaning .......................................... .1 .3 .4 -1.2 3.2 -2.7 -1.3 2.8 -3.0 Saw mills and planing m ills........................................ Glass containers......................................................... Nonwool yarn m ills ..................................................... 2.2 2.2 2.4 .6 1.7 3.3 -1.6 -0.5 .9 Industry 86 Table 23. Output per hour of all persons and real compensation per hour in the business economy, 1950-86 (Index, 1950 = 100) Year Output per hour of all persons Real compensation per hour 1950 1951 1952 1953 1954 ............................................................... ............................................................... ............................................................... ............................................................... ............................................................... 100.0 104.0 107.3 111.2 112.9 100.0 101.7 105.7 112.0 115.1 1955 1956 1957 1958 1959 ............................................................... ............................................................... ............................................................... ............................................................... ............................................................... 116.3 117.9 121.0 124.6 128.7 118.4 124.5 128.2 130.5 135.1 1960 1961 1962 1963 1964 ............................................................... ............................................................... ............................................................... ............................................................... ............................................................... 130.9 135.5 140.3 145.9 152.2 138.7 142.5 147.5 151.2 157.0 1965 1966 1967 1968 1969 ............................................................... ............................................................... ............................................................... ............................................................... ............................................................... 156.7 161.0 165.3 169.8 169.9 160.4 166.7 170.8 176.8 179.5 1970 1971 1972 1973 1974 ............................................................... ............................................................... ............................................................... ............................................................... ............................................................... 171.1 176.6 182.0 185.6 181.6 181.8 185.5 191.1 194.7 192.2 1975 1976 1977 1978 1979 ............................................................... ............................................................... ............................................................... ............................................................... ............................................................... 185.2 190.3 193.5 195.1 192.7 193.3 198.9 201.4 203.1 200.2 1980 1981 1982 1983 1984 ............................................................... ............................................................... ............................................................... ............................................................... ............................................................... 192.1 194.8 194.0 199.3 204.3 194.9 192.8 195.9 197.8 197.4 1985 ............................................................... 1986 ............................................................... 208.0 211.9 199.6 203.5 87 Table 24. Gross domestic product per capita and average weekly hours, in the business economy, 1950-86 (Index, 1950 = 100) Year GDP per capita Average weekly hours 1950 1951 1952 1953 1954 ................................................... ................................................... ................................................... ................................................... ................................................... 100.0 108.4 110.7 113.3 109.8 100.0 100.0 99.5 99.0 98.1 1955 1956 1957 1958 1959 ................................................... ................................................... ................................................... .................................................. ................................................... 113.8 114.1 113.8 111.2 115.8 98.7 98.0 96.7 95.9 96.6 1960 1961 1962 1963 1964 .................................................. ................................................... ................................................... ................................................... ................................................... 116.4 117.4 121.7 124.9 129.7 96.2 95.8 96.0 96.0 95.8 1965 1966 1967 1968 1969 .................................................. .................................................. .................................................. .................................................. ................................................... 135.5 141.8 144.3 148.8 151.0 96.0 95.5 94.2 93.8 93.4 1970 1971 1972 1973 1974 ................................................... ................................................... .................................................. .................................................. .................................................. 148.8 150.9 156.6 162.7 160.2 92.0 91.6 91.6 91.4 90.3 1975 1976 1977 1978 1979 ................................................... ................................................... ................................................... ................................................... ................................................... 157.0 162.9 168.7 175.6 177.2 89.4 89.3 89.2 88.9 88.4 1980 1981 1982 1983 1984 .................................................. .................................................. ................................................... .................................................. .................................................. 174.8 176.5 170.3 175.0 185.5 87.5 87.2 86.3 86.7 87.2 1985 ................................................... 1986 ................................................... 189.8 194.0 86.5 86.8 88 Table 25. Gross nonresidential capital formation per employed person, selected countries, averages for periods, 1970-85 and 1979-85 (Index, United States = 100 each period) Country 1970-85 1979-85 Canada ............................................... Japan ................................................. France ............................................... Germany............................................. Ita ly..................................................... United Kingdom ................................ 103.5 85.8 82.6 87.8 63.1 58.2 110.1 94.2 86.4 90.8 63.1 58.8 Note: Capital formation converted to U.S. dollars using purchasing-power-parity exchange rates for capital investment. Table 26. Gross fixed capital formation per employed person, selected countries, 1970-79 and 1979-85 (Average annual rates) Country 1970-79 1979-85 United States .................................... Canada .............................................. Japan ................................................. France ............................................... Germany............................................ Ita ly..................................................... United Kingdom ................................ 0.6 2.0 3.0 2.2 1.4 .3 1.0 1.7 .3 2.7 1.1 .3 1.5 2.0 89 Table 27. Expenditures for research and development as a percent of gross national product1, all R&D and nondefense R&D, selected countries, 1961-86 Year United States France Germany Japan United Kingdom All R&D expenditures 1961 ........................................... 1962 .......................................... 1963 ........................................... 1964 ........................................... 1965 ........................................... 2.7 2.7 2.8 2.9 2.8 1.4 1.5 1.6 1.8 2.0 NA 1.2 1.4 1.6 1.7 1.4 1.5 1.4 1.5 1.5 2.5 NA NA 2.3 NA 1966 1967 1968 1969 1970 ........................................... ........................................... .......................................... ........................................... ........................................... 2.8 2.8 2.8 2.7 2.6 2.1 2.1 2.1 1.9 1.9 1.8 2.0 2.0 1.8 2.1 1.5 1.5 1.6 1.6 1.9 2.3 2.3 2.3 2.3 NA 1971 1972 1973 1974 1975 ........................................... ........................................... ........................................... .......................................... .......................................... 2.4 2.3 2.3 2.2 2.2 1.9 1.9 1.8 1.8 1.8 2.2 2.2 2.1 2.1 2.2 1.9 1.9 1.9 2.0 2.0 NA 2.1 NA NA 2.2 1976 1977 1978 1979 1980 ........................................... ........................................... ........................................... ........................................... ........................................... 2.2 2.1 2.1 2.2 2.3 1.8 1.8 1.8 1.8 1.8 2.2 2.1 2.2 2.4 2.4 1.9 1.9 2.0 2.1 2.2 NA NA 2.2 NA NA 1981 ........................................... 1982 ........................................... 1983 ........................................... 19842 ........................................ 19852 ......................................... 19862 ........................................ 2.4 2.5 2.6 2.6 2.7 2.8 2.0 2.1 2.2 2.2 2.3 2.4 2.4 2.5 2.5 2.5 2.7 2.7 2.4 2.5 2.6 2.6 2.8 NA 2.4 NA 2.2 NA 2.2 NA Nondefense R&D expenditures 1971 .......... ................................ 1972 ........................................... 1973 ........................................... 1974 ........................................... 1975 ........................................... 1.6 1.6 1.6 1.6 1.6 1.5 1.5 1.4 1.4 1.5 2.0 2.1 1.9 2.0 2.1 1.8 1.8 1.9 2.0 1.9 NA 1.6 NA NA 1.6 ........................................... ........................................... ........................................... ........................................... ........................................... 1.6 1.6 1.6 1.7 1.8 1.4 1.4 1.4 1.4 1.4 2.0 2.0 2.1 2.3 2.3 1.9 1.9 2.0 2.1 2.2 NA NA 1.6 NA NA 1981 ........................................... 1982 ........................................... 1983 ........................................... 19842 ........................................ 19852 ........................................ 19862 ......................................... 1.8 1.9 1.9 1.8 1.9 1.9 1.5 1.6 1.7 1.8 1.8 1.9 2.3 2.4 2.4 2.4 2.5 2.6 2.4 2.5 2.6 2.6 2.8 NA 1.7 NA 1.5 NA 1.5 NA 1976 1977 1978 1979 1980 NA = Not Available 1For France, as a percent of gross domestic product. Preliminary or estimates. 90 Table 28. Scientists and engineers engaged in research and development, per 10,000 labor force, selected countries and years Country 1976 1980 1984 1986 United States ........................ France .................................. Germany................................ Japan ..................................... United Kingdom .................... 54.8 29.9 39.2 48.4 31.11 60.0 32.4 46.52 53.6 46.52 65.1 41.2 49.1 62.4 34.2 64.0 NA NA 63.23 32.83 11975 21981 31985 ☆ U S . G O VE R N M E N T PRINTING OFFICE: 1988 J 202- 109 814- M /8 4 91 5 Bureau of Labor Statistics Regional Offices Region I Kennedy Federal Building Suite 1603 Boston, MA 02203 Phone: (617) 565-2327 Region IV 1371 Peachtree Street, N.W. Atlanta, GA 30367 Phone: (404)347-4418 Regions VII and VIII 911 Walnut Street Kansas City, MO 64106 Phone: (816)374-2481 Region II Room 808 201 Varick Street New York, NY 10014 Phone: (212) 337-2400 Region V 9th Floor Federal Office Building 230 S. Dearborn Street Chicago, IL 60604 Phone: (312) 353-1880 Regions IX and X 71 Stevenson Street P.O. Box 3766 San Francisco, CA 94119 Phone: (415) 995-5605 Region III 3535 Market Street P.O. Box 13309 Philadelphia, PA 19101 Phone: (215) 596-1154 Region VI Federal Building 525 Griffin Street, Room 221 Dallas, TX 75202 Phone: (214) 767-6971 Postage and Fees Paid U.S. Department of Labor U.S. Department of Labor Bureau of Labor Statistics Washington, D.C. 20212 Third Class Mail Official Business Penalty for Private Use, $300 Lab-441 U nited States D e p a rtm e n t of Labor iO Years o f Working for A m ericas Future
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