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MONTHLY LABOR REVIEW U.S. Department of Labor Bureau of Labor Statistics April 1981 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -» 4 * au * t? . U.S. DEPARTMENT OF LABOR Raymond J. Donovan, Secretary BUREAU OF LABOR STATISTICS Janet L. Norwood, Commissioner The Monthly Labor Review is published by the Bureau of Labor Statistics of the U S. Department of Labor. Communications on editorial matters should be addressed to the Editor-in-Chief, Monthly Labor Review, Bureau of Labor Statistics, Washington, D C. 20212. Phone: (202) 523 -1327. Subscription price per year $18 domestic; $22.50 foreign. Single copy $2.50. Subscription prices and distribution policies for the Monthly Labor Review (ISSN 0098-0818) and other Government publications are set by the Government Printing Office, an agency of the U S. Congress. Send correspondence on circulation and subscription matters (including address changes) to: Superintendent of Documents, Government Printing Office, Washington, D.C. 20402 Make checks payable to Superintendent of Documents. The Secretary of Labor has determined that the publication of this periodical is necessary in the transaction of the public business required by law of this Department. Use of funds for printing this periodical has been approved by the Director of the Office of Management and Budget through October 31, 1982. Second-class postage paid at Riverdale, MD., and at additional mailing offices. Library of Congress Catalog Card Number 15 - 26485 Regional Commissioners for Bureau of Labor Statistics Region I Boston: W endell D. M acdonald 1603 JFK Federal Building, Government Center, Boston, Mass. 02203 Phone: (617) 223 -6761 Connecticut Maine Massachusetts New Hampshire Rhode Island Vermont Region II New York: Sam uel M. Ehrenhalt 1515 Broadway, Suite 3400, New York, N Y. 10036 Phone: (212) 944 3121 New Jersey New York Puerto Rico Virgin Islands Region III - Philadelphia: A lvin I. M argulis 3535 Market Street PO . Box 13309, Philadelphia, Pa. 19101 Phone: (215) 596 -11 54 Delaware District of Columbia Maryland Pennsylvania Virginia West Virginia Region IV — Atlanta: D onald M. Cruse 1371 Peachtree Street, N.E., Atlanta, Ga. 30367 Phone: (404) 881 -4418 Alabama Florida Georgia Kentucky Mississippi North Carolina South Carolina Tennessee Region V — Chicago: W illiam E. Rice 9th Floor, Federal Office Building, 230 S. Dearborn Street, Chicago, III. 60604 Phone: (312) 3 5 3 -18 80 Illinois Indiana Michigan Minnesota Ohio Wisconsin Region VI — Dallas: Bryan Richey Second Floor, 555 Griffin Square Building, Dallas, Tex. 75202 Phone: (214) 767-6971 Arkansas Louisiana New Mexico Oklahoma Texas Regions VII and VIII — Kansas City: E llio tt A. B row ar 911 Walnut Street, Kansas City, Mo. 64106 Phone: (816) 374-2481 VII Iowa Kansas Missouri Nebraska VIII Colorado Montana North Dakota South Dakota Utah Wyoming April cover: Detail from "Man of Steel" (1930), a bronze sculpture by Max Kallsh courtesy National Museum of American Art, Washington, D.C. Cover design by Richard L. Mathews, Division of Audio-Visual Communications, U.S. Department of Labor. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Regions IX and X — San Francisco: D. Bruce Hanchett 450 Golden Gate Avenue, Box 36017, San Francisco, Calif. 94102 Phone: (415) 556 -46 78 IX American Samoa Arizona California Guam Hawaii Nevada Trust Territory of the Pacific Islands X Alaska Idaho ’n Oregon Washington MONTHLY LABOR REVIEW APRIL 1981 VOLUME 104, NUMBER 4 l ib r a r y m 28 m Henry Lowenstern, Editor-in-Chief Robert W. Fisher, Executive Editor Craig Howell and others 3 Price changes in 1980: double-digit inflation persists Consumer prices jumped 12.4 percent and producer prices, 11.7 percent; energy and food costs increased— mortgage interest rates were volatile Gregory J. Mounts 13 Labor and the Supreme Court: significant decisions of 1979-80 The Court approved Congress’ remedial quotas for employment, left key issues of safety and health unresolved, and limited NLRA coverage of teachers Robert A. Moffitt 23 The negative income tax: would it discourage work? Advocates often contend plan would provide more incentive than welfare benefits, but recent evidence indicates that this assumption may not be well-founded Daniel E. Taylor 28 Education, on-the-job training, and the black-white pay gap Black men’s earnings lag those of white men, but their monetary returns for each year of education are as high as those for white counterparts C. B. Barsky, M. E. Personick 35 Measuring wage dispersion: pay ranges reflect industry traits Greatest wage dispersion occurs in industries with broad occupational staffing or with incentive pay; high-paying industries show less variation in earnings ÎRRA PAPERS George T. Milkovich Gregory E. DeFreitas D. Ledgerwood and S. Johnson-Dietz B. Bergmann, W. Darity, Jr. 42 44 The male-female earnings gap: a need for réévaluation What is the occupational mobility of black immigrants? 45 47 Sexual harassment: implications for employer liability Social relations and employer discrimination REPORTS Joseph L. Gastwirth Arthur S. Herman Charles F. Mueller https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 50 58 62 Estimating the demographic mix of the available labor force Productivity slows or drops in more than half of industries measured Migration of the unemployed: a relocation assistance program DEPARTMENTS 2 42 50 58 62 65 67 70 77 Labor month in review Conference papers Communications Productivity reports Research summaries Major agreements expiring next month Developments in industrial relations Book reviews Current labor statistics Labor M onth In Review STATISTICAL INTEGRITY. Three years ago, a President’s Reorganization Project for the Federal Statistical System, under the leadership of James T. Bonnen, set out to define the prob lems of Federal statistics and to suggest some possible solutions. Last month, the Statistical Reporter, issued by the Office of Federal Statistical Policy and Stand ards, published the Project’s report, “ Improving the Federal Statistical System: Issues and Options.” The following excerpts from chapter 5 focus on threats to the integrity of the statistical system. The most direct threat to integrity is outright manipulation of, or tampering with, data. For the most part, this is not believed to be a problem. The produc tion of a major statistical series or analysis is almost always a joint effort involving many statisticians, field staff, systems analysts, and others. Any significant manipulation of the output would likely cause someone within the system to blow the whistle. Knowledgeable users would also be like ly to raise questions. According to the diaries of Henry W allace, President Franklin D. Roosevelt once suggested to Dr. Isador Lubin that he “ doctor up the cost of liv ing figures by leaving out some item so as to make it appear that the cost of liv ing was not really so much as it is.” Such a suggestion to a statistical administrator by a President or other high administra tion official today seems almost un thinkable. It is important to insure that the conditions that make it unthinkable continue to exist. More subtle threats to integrity can arise from selectivity—selectivity in what kinds of data to collect, in the resources allotted to establish the quality of data in a particular series, in the selection of models and assumptions for analyzing 2 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis an issue, in decisions on what data to in clude in publications, in decisions on when to release data or analyses, and in many other ways. Analytical, as oppos ed to data-production, activities are especially vulnerable to threats of bias from selectivity. Selectivity biases can arise inside the statistical system, if employees allow their own personal biases to affect their objectivity, but are perhaps more likely to arise from outside the system. It is usually in the interest of any admin istration, particularly as a Presidential election year ap p ro a c h e s, to demonstrate that the economy is sound and society is healthy. Considerable restraint and objectivity on the part of administration officials are needed to avoid favoring statistical activities which support that view, and withdrawing sup port from those which do not. The integrity of the Federal statistical system depends heavily on the maintenance of high professional stan dards by its members. Threats to integri ty can arise within the system from lack of professionalism and objectivity. Some practices to be avoided include: (1) The use of judgment, as opposed to random or probability, samples. Judgment or purposive samples are sometimes acceptable for small ex ploratory studies, but should never be used when estimates for the population sampled are a primary objective. (2) Failure to deal properly with miss ing or incomplete data. Statisticians must evaluate the probable effects of nonresponse bias on a particular series, make reasonable efforts to achieve an acceptable level of response, and develop and document procedures to deal with remaining nonresponse. (3) Failure to monitor all phases of data collection and processing with ap propriate quality control procedures. (4) Failure to document all procedures used to collect, compile, process, and analyze data, and to make documenta tion available to data users and other in terested persons. (5) Failure to use acceptable evalua tion techniques, such as verification, validation, and sensitivity analyses. Another kind of threat to the in tegrity of the Federal statistical system can occur if agencies or individuals fail to observe what has come to be called a code of fair information practices. Data collectors must not, in their zeal to achieve high response rates, harass potential respondents to voluntary surveys or misrepresent in any way the conditions under which they are be ing asked to respond. Once data are sup plied to the system, all employees must be aware of and scrupulously abide by all regulations, policies, and procedures designed to protect the confidentiality of individually identifiable data. Failure to abide by fair information practices, no matter how well intentioned, in the long run can only impair the integrity of the system and destroy the confidence of persons and businesses asked to supply data for statistical pur poses. Cooperation in voluntary surveys will probably decline, and the quality of results will suffer accordingly. Finally, employees of the Federal statistical system must avoid any conflict of interest. Most issues in this area are similar to those which arise in other kinds of government activities. Employ ees with responsibilities for procurement should deal at arm’s length with any organizations from which their agencies contract for surveys and other statistical services, purchase of data-processing equipment, and so forth. The report appears in the February 1981 issue of Statistical Reporter, available for SI. 10 from the Superinten dent of Documents, Government Prin ting Office, Washington, D.C. 20402. Annual subscription price, $13. □ Price changes in 1980: double-digit inflation persists Consumer prices jum ped 12.4 percent and producer prices, 11.7 percent; costs for energy items rose, but mortgage interest rates fluctuated wildly and a severe drought raised food prices C r a ig H o w e l l , D ave Callahan, a n d others For the second consecutive year, the rate of inflation in both retail and primary markets registered double-digit increases. The Consumer Price Index for All Urban Consumers ( c p i -u ) moved up 12.4 percent, following a 13.3-percent advance during 1979. Prices for all major consumer expenditure categories, except apparel and en tertainment, increased at least 10 percent over the year. Mortgage interest costs advanced 27.6 percent, com pared with a 34.7-percent climb in the preceding year. Prices paid by consumers for energy items were up 18.1 percent. Although this was larger than the increases re corded for most other CPI components, it was half as large as the 1979 surge of 37.4 percent. Food prices rose about 10 percent for the second consecutive year. Excluding food, energy, and mortgage interest costs, however, the rate of increase in the CPI accelerated from 8.7 percent in 1979 to 9.9 percent in 1980. (See table 1.) At the primary market level, Producer Price Indexes ( p p i ) for each of the three major stage-of-processing groupings—finished, intermediate, and crude goods— rose at double-digit rates from December 1979 to De cember 1980, although each rate was somewhat slower than the corresponding 1979 pace. The Finished Goods Price Index climbed 11.7 percent in 1980, following a Craig Howell and Dave Callahan are economists in the Office of Prices and Living Conditions, Bureau of Labor Statistics. They were assisted by Andrew Clem, John Z. Wetmore, William Thomas, Eddie Lamb, Mary Burns, and Jesse Thomas, economists in the same office. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 12.8-percent advance in 1979.1 The slowdown in 1980 was partly due to the deceleration in the rate of increase for the finished energy goods index, which climbed 27.7 percent, after soaring 58.0 percent in 1979. Finished consumer food prices rose 7.3 percent in 1980, virtually the same as during the previous 12 months. Prices for finished goods other than food and energy rose more in 1980 (11.0 percent) than in 1979 (9.3 percent); on aver age these prices advanced rapidly in early 1980 and then moderated as the year progressed. At the earlier stages of processing, the price index for intermediate goods moved up 12.5 percent over the year, after in creasing 16.1 percent from December 1978 to December 1979, and crude material prices climbed 11.9 percent, following a 16.4-percent jump during the 12 months ended in December 1979. Energy cost increases moderate Prices for most energy goods and services continued to rise rapidly in 1980, although the increases were gen erally less than in 1979. (See table 2.) The upward movement in energy prices reflected increased costs of imported crude petroleum as well as higher prices allowed for domestic crude petroleum and natural gas. The slowdown in the rate of increase was partly due to reduced consumer and industrial demand for energy. In late 1979 and early 1980, world crude petroleum prices rose sharply as the security of Persian Gulf oil shipments was threatened by political turmoil in Iran 3 MONTHLY LABOR REVIEW April 1981 • Price Changes in 1980 Table 1. Changes in selected components of the Consumer and the Producer Price Indexes, 1979-80 C o m p o u n d a n n u a l r a t e s , s e a s o n a lly a d ju s t e d C o n tr ib u tio n 1 P e rc e n t c h an g e e x c e p t a s n o te d , fo r 3 m o n th s e n d e d — R e la t iv e G r o u p in g im p o r t a n c e D e c . 1979 D e c . 1978 D ec. 1979 D ec. 1978 D ec. 1979 D ec. 1980 D ec. 1979 D e c . 1980 1980 to D ec. 1979 M ar. June S e p t. Dec. C o n s u m e r P r ic e In d e x f o r A ll U rb a n C o n s u m e rs (C P I-U )2 A.i items .............................................................. Food and beverages ...................................... Food at hom e............................................... Food away from home ............................... Alcoholic beverages .................................... 100.0 18.7 12.2 5.5 1.0 13.3 10.0 9.5 11.4 8.0 12.4 10.1 10.6 9.6 7.6 100.0 14.5 9.1 4.8 .6 100.0 15.3 10.4 4.2 .6 17.3 3.6 .8 9.1 7.4 11.4 5.9 4.7 8.1 9.8 7.8 19.1 24.8 9.0 8.2 13.2 12.5 13.2 12.3 5.2 All Housing .......................................................... Shelter ............................................................ Rent, residential3 ........................................ Flomeownership.......................................... Finances, taxes, insurance3 .................... Maintenance and re p a irs ........................ Fuel and other utilities................................. Flousehold furnishings and repairs ............. 45.0 30.9 5.3 24.9 10.4 10.9 3.6 6.5 7.6 15.2 17.4 7.9 19.8 15.8 27.5 10.3 16.0 6.4 13.7 15.1 9.1 16.5 11.4 23.3 10.6 13.6 8.1 50.5 39.0 3.3 35.0 12.1 20.0 2.9 7.6 3.9 49.7 37.6 3.9 33.2 9.5 20.5 3.1 7.1 5.0 18.5 20.0 8.3 22.6 7.0 41.5 16.2 19.8 10.8 19.7 23.1 10.0 26.4 14.9 43.9 8.3 17.0 8.4 1.7 -1.4 8.6 -3.5 14.9 -20.0 8.2 9.8 7.8 15.8 20.2 9.6 23.1 9.0 41.8 10.1 8.5 5.1 Apparel and upkeep............................................ Apparel commodities ...................................... Apparel services ............................................ 5.1 4.4 .7 5.5 4.5 12.5 6.8 6.0 12.4 2.3 1.6 .6 2.8 2.1 .7 13.2 13.2 14.9 1.1 - .7 13.8 8.9 8.8 9.2 4.3 3.3 11.7 Transportation..................................................... Private transportation ...................................... Public transportation........................................ 18.6 17.5 1.1 18.2 18.2 17.9 14.7 14.0 25.6 24.3 23.0 1.4 22.0 19.8 2.2 33.2 34.1 17.3 2.6 1.8 18.6 11.3 8.9 56.7 13.9 13.8 14.1 Medical c a r e ....................................................... Medical care commodities............................... Medical care services...................................... 4.8 .8 4.0 10.1 7.6 10.6 10.0 10.0 10.0 3.8 .5 3.3 3.9 .6 3.3 14.2 10.2 15.3 8.9 10.7 8.4 9.2 10.2 8.9 7.9 8.9 7.7 Entertainment ..................................................... 3.7 6.9 9.6 2.0 2.9 14.3 9.1 10.5 5.0 Other goods and services 4.1 7.9 10.1 2.5 3.3 11.0 9.3 11.1 9.0 13.2 13.1 9.6 .3 17.9 ................................. Services less energy ...................................... 100.0 17.7 34.5 10.3 37.5 13.3 10.2 8.8 37.4 13.6 12.4 10.2 9.9 18.1 14.1 100.0 13.9 23.8 24.0 38.3 100.0 14.6 27.7 15.1 42.6 17.3 3.3 9.5 64.0 20.2 11.4 5.8 7.7 15.2 20.0 7.8 19.7 All ite m s .............................................................. Services .......................................................... Commodities ................................................... 100.0 40.9 59.1 13.3 13.7 13.0 12.4 14.2 10.3 100.0 42.1 57.9 100.0 47.0 53.0 17.3 20.1 15.3 11.4 20.5 5.4 7.8 13.2 16.8 11.0 All items less food, energy, and mortgage Interest c o s t..................................................... 62.0 8.7 9.9 43.2 51.0 10.7 8.6 11.0 9.3 Finished goods ................................................... Finished energy goods ................................... Consumer foods ............................................ Finished goods less food ............................... Finished goods less food and energy............. Finished consumer goods less fo o d ............... Finished consumer goods less food and energy.......................................................... Capital equipment .......................................... 100.0 11.3 25.9 74.1 62.8 52.0 12.8 58.0 7.4 14.8 9.4 17.5 11.7 27.7 7.3 13.3 10.6 14.0 100.0 36.7 15.7 84.1 47.5 68.2 100.0 26.9 16.1 83.9 57.0 62.2 17.5 89.2 24.6 15.0 29.7 8.4 18.7 -1.4 11.8 10.4 12.1 13.5 27.3 31.0 8.3 9.3 7.6 7.8 14.4 3.6 9.3 8.3 8.5 40.7 22.0 9.7 8.8 10.2 11.4 31.7 15.7 35.5 21.5 16.0 13.6 10.0 10.9 8.9 9.9 6.7 11.4 Intermediate materials, supplies, and components Intermediate energy goods ............................. Intermediate food and feeds ........................... Intermediate materials less foods and feeds . . Intermediate materials less food and energy . . 100.0 14.1 6.1 93.9 79.8 16.1 44.7 8.2 16.7 12.8 12.5 25.2 15.3 12.3 10.0 100.0 31.5 3.4 96.9 65.2 100.0 28.5 7.5 92.5 64.0 22.2 65.4 .5 23.7 17.1 6.6 9.9 14.1 6.2 5.8 10.1 13.0 52.7 7.8 6.9 11.9 19.5 .7 12.6 11.0 Crude materials from further processing ........... 100.0 24.0 59.7 40.3 16.3 16.4 34.9 10.6 26.1 15.1 11.9 23.0 8.6 16.7 7.5 100.0 44.1 40.6 59.2 15.2 100.0 46.4 43.1 56.6 10.3 -3.4 33.6 -16.6 18.9 .2 -.1 19.3 - .3 .2 -24.4 55.2 20.4 73.9 32.3 54.8 4.4 19.1 -4.1 17.6 15.1 All items .............................................................. F o o d ................................................................ Commodities less food and energy ............... 2.5 - .4 P r o d u c e r P r ic e In d e x ( P P I) b y s ta g e o f p r o c e s s in g 2 Crude foodstuffs and feedstuffs...................... Crude nonfood materials................................. Crude nonfood materials less energy............. ' Percent of overall change attributable to each specific item. 2 See "Definitions” and “ Notes” preceding tables 22-30 of Current Labor Statistics in this Review. 3 Not seasonally adjusted. Note: PPI data shown above and elsewhere in this article may differ from those previously 4 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis reported because: (1) stage-of-processing indexes from January 1976 through December 1980 have been revised to reflect 1972 input-output relationships; (2) seasonal adjustment factors have been recalculated to reflect developments during 1980; and (3) data through September 1980 have been routinely revised to reflect late reports and corrections by respondents. Sea sonal adjustment factors have also been recalculated for CPI data. and Afghanistan. Some members of the Organization of Petroleum Exporting Countries (OPEC) lifted their prices unilaterally; others, such as Saudi Arabia, sought to re strain such increases. Industrial nations reduced their consumption of petroleum as a consequence of the slug gish economy, consumers’ resistance to increases in gas oline prices, and the trend toward more energy-efficient technologies. As a result, inventories of crude petroleum grew to record levels as Saudi Arabia continued to ex port about one million barrels per day above the level it was exporting prior to the Iranian Revolution of early 1979. The surplus of crude oil on world markets inhibited other OPEC members from raising prices sub stantially during mid-year. However, in late September, oil shipments from Iraq and Iran virtually ceased after their war broke out. Trading on the spot market quick ened, and prices rapidly rose to more than $40 per bar rel for the first time since late 1979.2 The United States imported about 20 percent less crude oil in 1980 than in 1979, which helped to moder ate the impact of higher costs of foreign crude oil on domestic energy prices. American refineries operated at an average capacity utilization rate of 76 percent during 1980, down from 85 percent in 1979, and 88 percent in 1978. The continuing phase-out of price controls on crude oil encouraged increased production and explora tion. As a result, domestic output of crude oil exceeded Table 2. 1979 levels, despite considerably weakened demand for most petroleum products. As deregulation continued, domestic crude oil prices became increasingly sensitive to world market conditions. Prices for domestic crude petroleum rose substantially during 1980,3 although not as rapidly as in 1979. Consumer items. Retail gasoline prices rose 18.9 percent in 1980, substantially less than the 52.2-percent surge in 1979. Most of the 1980 increase occurred in the first quarter, as refiners passed through the crude oil price boosts of late 1979 and early 1980. In the spring, the combined effects of the recession, consumer resis tance to the earlier price jump, and the increasing pro portion of smaller, high-mileage automobiles in use led to a decline in demand for gasoline, resulting in recordhigh levels of gasoline inventories. Profit margins for re tailers were squeezed as competition led to small price decreases during the second and third quarters. But gasoline prices turned up again in the fourth quarter, as the economy strengthened and crude oil costs continued to climb. Consumer prices for home heating oil moved up 20.2 percent over the year, about one-third as much as in 1979. Again, the largest advances occurred early in the year. Demand was lighter than expected, largely be cause of the relatively mild winter. As a result, during Changes in retail and producer prices for energy items, 1979-80 P e rc e n t c h a n g e C o m p o u n d a n n u a l r a t e , s e a s o n a lly a d ju s t e d , e x c e D t a s n o te d , fo r 3 m o n th s e n d e d — R e la t iv e G r o u p in g In d e x im p o rta n c e D ec. 1978 D ec. 1979 D e c . 1979 D ec. 1980 1980 D ec. 1979 M ar. June S e p t. Dec. F in is h e d it e m s ( s o ld t o c o n s u m e r s ) Energy items ' ................................................................... Finished energy g o o d s..................................................... Gasoline, motor oil, coolants, etc................................... Gasoline2 ................................................................ Household fu e ls ............................................................ Fuel oil2 .................................................................. Gas (piped)1 2 .......................................................... Electricity.................................................................. CPI PPI CPI CPI PPI CPI CPI PPI CPI PPI CPI 100.0 100.0 55.3 54.5 55.7 44.7 10.3 14.6 13.4 17.5 19.5 37.4 58.0 51.4 52.2 61.2 23.4 61.8 70.4 20.1 38.7 11.2 18.1 27.7 18.9 18.9 29.5 17.0 20.2 24.0 14.7 29.9 16.7 64.0 89.2 97.6 98.9 125.9 28.7 68.4 81.7 14.3 25.9 18.6 15.2 18.7 -5.3 -5.8 16.9 20.6 3.7 14.1 29.3 25.9 28.1 2.5 3.6 -3 .0 -3.3 -3.9 11.5 1.5 2.5 15. 6 37.9 14.0 0.3 14.5 10.2 10.5 10.7 8.5 17.9 11.7 1.4 30.3 7.3 PPI PPI PPI PPI PPI PPI 100.0 9.2 8.1 14.1 5.0 32.1 44.7 74.9 76.1 62.8 77.5 14.5 25.2 23.5 29.7 39.1 20.9 17.7 65.4 88.2 98.6 95.7 63.2 20.3 9.9 9.7 24.6 -42.5 7.4 22.6 13.0 9.6 13.1 65.8 -9.1 16.9 19.5 2.9 1.0 99.6 34.3 10 9 PPI PPI PPI PPI 100.0 28.9 51.0 20.1 34.9 38.7 50.7 3.3 23.0 29.9 26.6 3.7 33.6 25.9 52.1 6.1 19.3 25.9 21.6 -2.2 20.4 37.9 17.3 5.4 19.1 30.3 18.4 6.3 In t e r m e d ia t e m a t e r ia ls ( s o ld t o b u s in e s s e s ) Intermediate energy g o o d s .............................................. Diesel fuel2 .................................................................. Commercial jet fuel ' • 2 ................................................. Residual fuel2 .............................................................. Liquefied petroleum gas1 ............................................ Electric power3 ............................................................ C r u d e m a t e r ia ls Crude energy materials ................................................... Natural gas1 2 .............................................................. Crude petroleum .......................................................... Coal .............................................................................. 1Not seasonally adjusted. 2 Prices for these Items are lagged 1 month in the PPI. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3 Includes commercial and industrial power, but not residential. 5 MONTHLY LABOR REVIEW April 1981 • Price Changes in 1980 the opening months of 1980, primary stocks of distillate fuels (home heating oil and diesel oil) were considerably above 1979 levels.4 Retail prices for piped gas rose 14.7 percent, almost as much as in the prior year; this paralleled the pattern of producer prices for natural gas at the wellhead, which climbed almost 30 percent following a 38.7-per cent jump in 1979.5 Under the provisions of the 1978 Natural Gas Policy Act, price ceilings were raised dur ing the year. In addition, a relatively greater volume of gas from newer or deeper wells was sold in 1980; existing regulations allowed higher prices for gas from such wells. Prices for natural gas imported from Cana da (which are based on changes in world crude oil prices) advanced sharply during the first half and then stabilized. Residential electricity rates increased more than in 1979. Most of the 1980 increase occurred in the first half of the year as regulatory agencies permitted higher generation fuel costs incurred in 1979 to be passed through to consumers; rate increases slowed for the rest of the year. Industrial fuels. Producer prices of energy items used in the production of goods and services also continued to move up in 1980, although the increases were less than in 1979. Prices for refined petroleum products rose sharply early in the year, following increases in OPEC crude oil prices. The petroleum glut which emerged during the middle of the year helped to keep prices for diesel fuel, commercial jet fuel, and liquefied petroleum gas relatively stable until late in the year, when these prices turned upward again. Prices for residual fuel tended to be more volatile, dropping sharply in the sec ond quarter after several utilities and industrial firms switched to less costly fuels, then turning upward dur Table 3. ing the second half of the year. Charges for commercial and industrial electric power advanced more than during the previous year; this was due to significantly higher fuel costs as well as addition al fixed costs incurred by some electric utilities for switching from oil to other fuels. The sharpest increases in electric power rates occurred on the West Coast and in New England, where relatively more oil for power generation is used. Ample supplies resulted in an in crease in coal prices of less than 4 percent for the sec ond consecutive year. Potentially strong demand by foreign nations for coal was constrained by the lack of adequate port facilities in this country. Mortgage interest rates bounce Following a 13.6-percent advance in 1979, the CPI for services excluding energy increased 14.1 percent in 1980. This increase was largely caused by substantially higher prices for household services other than energy, which moved up 17.2 percent primarily because of a 27.6-percent climb in the index for contracted mortgage interest costs (34.7 percent in 1979). This advance in the contracted mortgage interest cost index was respon sible for nearly one-fifth of the 1980 increase in the All Items CPI. The index for residential rent moved up 9.1 percent, compared with 7.9 percent in 1979, reflecting higher charges for heating oil, gas, and electricity. In creases in charges for transportation services also accel erated, while the indexes for medical care, entertain ment, and apparel services rose about as much as in the previous year. (See table 3.) The 17.2-percent increase for household services other than rent and energy reflected home purchase prices (up 11.4 percent in 1980; 15.8 percent in 1979) and mort gage interest rates (up 15.0 percent in 1980; 16.1 per- Changes in consumer services less energy prices, 1979-80 C o m p o u n d a n n u a l r a t e , s e a s o n a lly a d ju s t e d P e rc e n t ch a n g e e x c e p t as n o te d , fo r 3 m o n th e n d e d R e la t iv e C P i g r o u p in g D ec. 1978 D ec. 1979 to to D ec. 1979 D e c . 1980 M ar. June S e p t. D ec. Services less energy .............................................. Rent, residential1 ................................................................ 100.0 14.0 13.6 7.9 14.1 9.1 20.2 8.3 20.0 10.0 -0.4 8.6 17.9 9.6 Household less rent and energy1 ...................................... Home financing, taxes, and insurance ' ........................... Mortgage interest costs1 ............................................ Home maintenance and repairs ...................................... Housekeeping services1 ................................................. 48.7 23.1 8.7 7.4 5.4 18.8 27.5 34.7 10.6 8.4 17.2 23.3 27.6 10.7 7.4 28.6 41.5 51.6 18.3 8.8 29.7 43.9 55.0 7.0 8.6 -10.8 -20.0 -25.4 7.0 6.4 26.7 41.8 51.3 11.0 5.7 Transportation services....................................................... Auto maintenance and repairs ........................................ Other private transportation services ............................. Public transportation1 ..................................................... 15.1 3.9 8.3 2.8 10.3 10.2 8.0 17.9 14.1 10.9 11.8 25.6 16.2 10.8 18.4 17.3 16.6 11.0 18.6 18.6 13.5 10.9 2.1 56.7 10.3 10.8 8.8 14.1 Medical care services.......................................................... Entertainment services1 ..................................................... 10.7 4.1 2.4 1.8 3.2 10.6 5.8 8.4 12.5 8.8 10.0 8.7 8.0 12.4 12.3 15.3 12.9 11.3 14.9 10.2 8.4 9.2 7.4 13.8 9.2 8.9 9.7 6.5 9.2 21.7 7.7 3.3 6.8 11.7 8.6 Apparel services................................................................... Personal and educational services...................................... 1Not seasonally adjusted. 6 im p o rta n c e https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis cent in 1979). The index for mortgage interest rates ac celerated sharply during 1980. In late 1979, the Federal Reserve Board began a series of credit-tightening moves. The resulting climb in interest rates in early 1980 dampened the previously strong demand for hous es and home financing. The mortgage interest rate index then decreased sharply in the third quarter. Conse quently in the fourth quarter, the demand for houses and house financing rose, in part, because house pur chases were still viewed as a hedge against inflation. The Federal Reserve Board continued its restrictive pol icies, and mortgage interest rates again accelerated to levels approaching the record established in early 1980.6 The index for property insurance rose 13.2 percent, a much faster rate than was registered in the preceding year. Insurance premiums for a specified level of cover age increased very little but the additional coverage made necessary by escalating house prices caused most of the overall increase. The property tax index rose 4.6 percent (3.7 percent in 1979). After the strong national trend toward Proposition 13 type legislation in 1978, lo cal taxing jurisdictions have been forced to raise proper ty taxes slowly to offset the costs of the services such taxes provide. The transportation services index rose 14.1 percent, more than in the previous year. The increase in the pub lic transportation index accelerated from 17.9 percent in 1979 to 25.6 percent in 1980. Sharply higher fuel costs and increased food and labor expenses caused airline fares to soar 33.4 percent, despite the competitive effects of the Airline Deregulation Act of 1978. Intracity mass transit fares increased 20.3 percent, as government sub sidies failed to keep pace with increased operating ex penses (largely higher wage and fuel costs). Increases in taxi fares reflected the cost of gasoline. Medical care services rose 10.0 percent, about the same as in 1979, reflecting large increases in profession al and hospital services. The entertainment services in dex moved up 8.7 percent, reflecting increases in fees for participant sports. Price increases for other types of ser vices, including personal care and apparel, rose about the same as in the previous year, while the personal and educational services index increased substantially more, reflecting higher college tuition. Drought hampers food production The CPI for food increased 10.2 percent, the same as in 1979. At the producer level, finished consumer food prices increased 7.3 percent in 1980, slightly less than in 1979. (See table 4.) Both the consumer and producer price indexes showed relatively little change during the first half of the year. However, in the third quarter, the CPI recorded its largest quarterly increase since 1973, and the PPI, its largest since 1974. This sharp runup was largely the result of a severe summer drought which helped prices for crude foodstuff's and feedstuff's https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis to soar at a 120.1-percent annual rate during July and August. At the same time, the increase in crude food prices pushed up producer prices of finished food prod ucts at an annual rate of 45.3 percent. Retail food prices consequently advanced at a 19.7-percent annual rate during the third quarter. During the fourth quarter, prices moderated: at the retail level, the moderation was quite small; at the producer level, it was substantial. Early in the year, live poultry and hog supplies were more than ample; in fact, pork production reached a new high. Competition from decreasing pork and poul try prices forced beef prices down, even though cattle populations were near the low point of the production cycle, which had peaked in 1975. In response to low prices in 1979, pig farmers already had cut back on production plans for late 1980. Meanwhile, hot summer weather damaged pastures and sent hay and manufac tured animal feed prices upward, and animal weight gain slowed. As a result, livestock supplies fell and prices soared during the third quarter. The hot weather also hit the poultry industry particularly hard, as mil lions of chickens succumbed to the heat. However, the fourth quarter showed considerable price moderation. Fluid milk prices rose 10.0 percent over the year de spite large supplies, primarily as the result of higher price supports. Combined with higher processing costs, this raised prices for dairy products about 10 percent at both the processor and retail levels. Prices for sugar and sweets showed the greatest in crease of any food group in the CPI in 1980. The 35.7-percent increase was the largest since 1974, when this index more than doubled. Within this group, the largest advance occurred for the sugar and artificial sweeteners component, which jumped 96.5 percent. Re tail sugar prices reached their highest level since Janu ary 1975. The PPI showed a similar picture: the price of raw sugar was up 62.2 percent. Poor sugar harvests in several major sugar producing countries, especially Cuba and the Soviet Union, led to a worldwide short age. The situation was aggravated by increased demand in many developing countries. In addition, intense spec ulation in commodity markets led to highly volatile price movements throughout the year. Higher sugar prices and tight supplies allowed prices for corn syrup, a widely used substitute sweetener, to soar 75.3 percent. However, prices for other confectionery materials failed to reflect these strong upward pressures. The declining per capita consumption in recent years and the third consecutive year of production surpluses sent the price of cocoa beans down 34.6 percent in 1980, keeping the increase in chocolate coating and candy bars modest, despite their large sugar content. The CPI for fats and oils increased 8.1 percent in 1980. Nondairy substitutes and peanut butter rose the most, at 20.7 percent. Processor peanut prices more than tripled by the end of the year, as the drought led 7 MONTHLY LABOR REVIEW April 1981 • Price Changes in 1980 Table 4. Changes in retail and producer prices for consumer foods, 1979-80 C o m p o u n d a n n u a l r a t e , s e a s o n a lly a d ju s t e d , P e rc e n t c h a n g e e x c e p t a s n o te d , fo r 3 m o n th s e n d e d R e la t iv e G ro u p in g In d e x im p o r t a n c e D e c . 1979 D e c . 1978 D e c . 1979 to to D ec. 1979 D ec. 1980 1980 M ar. June S e p t. Dec. Consumer foods1 ................................................. CPI PPI 100.0 100.0 10.2 7.4 10.2 7.3 3.3 -.9 5.8 -1.4 19.7 31.0 13.1 3.6 Beef and v e a l..................................................................... CPI PPI 10.3 13.4 21.7 20.6 5.0 -1.8 -3.5 -13.8 -16.3 -8 .0 48.8 35.0 1.4 -11.5 Pork2 ................................................................................ CPI PPI 4.7 6.3 -8 .2 -12.9 11.8 8.8 -4 .6 -30.0 -22.0 -23.5 87.2 171.7 12.0 -2.7 Poultry................................................................................ CPI PPI 2.2 3.3 -.8 -1.9 15.0 6.8 -8.1 48.1 -8 .9 -19.4 89.0 262.0 10.3 -15.3 Cereal and bakery products ............................................ CPI PPI 8.6 12.5 11.4 13.6 11.6 11.1 12.6 15.0 12.8 8.8 7.4 7.0 13.8 14.4 Dairy products ................................................................... CPI PPI 9.3 13.2 10.4 8.4 9.7 10.4 8.6 9.7 12.3 13.9 6.9 4.6 11.2 13.7 Fresh fruits and vegetables............................................... CPI PPI 5.0 4.7 13.2 -4 .9 139.9 16.1 -15.0 -12.0 27.4 41.3 53.7 100.5 0.3 -27.9 Processed fruits and vegetables2 .................................... CPI PPI 4.6 6.5 6.1 1.9 8.0 6.5 8.7 5.3 7.3 7.1 8.4 5.7 7.7 7.8 E g g s ........................................................ CPI PPI 1.3 2.0 3.6 5.0 11.1 9.6 -21.2 4.7 11.3 -19.9 31.3 47.9 31.8 16.4 Sugar and sweets3 ............................................................ CPI PPI 2.4 4.4 7.4 14.6 35.7 42.7 34.8 61.2 34.8 130.5 33.8 21.2 39.5 -7.7 Roasted coffee2 ................................................................ CPI PPI 1.0 4.5 19.6 22.8 -11.6 -14.7 -2.8 -5 .6 -4.7 -11.7 -5.7 -20.2 -30.0 -21.0 Fats and oil products4 ..................................................... CPI PPI 2.0 1.6 7.1 8.8 8.1 2.8 9.6 -0.2 -2 .0 -7.2 6.5 11.1 19.5 8.6 11ncludes Items not listed. The CPI includes prices of food away from home, which account for about 31 percent of the food Index. The PPI for finished consumer foods does not reflect restaurant prices. to the smallest peanut crop since 1964 on top of a poor harvest in 1979. Processor prices of peanut butter were up by a third. Margarine prices rose slightly, as higher processing costs more than offset lower prices for re fined corn and soybean oil. Prices for crude vegetable oils were down 9.9 percent despite a 34.9-percent rise in oilseed prices. Both oils and oilseeds showed large price declines during the first half of the year as excellent soybean harvests in Brazil depressed world prices. How ever, hot, dry weather across much of the United States during the summer resulted in a shortage, especially for soybeans. U.S. soybean production was down 20 per cent from 1979 after 3 years of record output. The price of soybeans jumped 25.0 percent in July alone. The price of vegetable cake and meal was up 19.8 percent over the year, creating a strong demand from crushers for oilseeds. Heavy crush resulted in large supplies of vegetable oil, a byproduct of vegetable cake and meal production. Meanwhile, strong demand for corn syrup resulted in large supplies of corn oil, which is a byproduct of corn syrup production. Thus, even with large price increases in the last half of 1980, abundant supplies kept crude vegetable oil prices well below the 1979 level. Retail prices for roasted coffee dropped 11.6 percent Digitized for 8FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2 Not seasonally adjusted, 3 “ Sugar and confectionery” in the PPI. Not seasonally adjusted in the PPI. 4 “ Vegetable oil end products” In the PPI. in 1980, compared with a 19.6-percent increase in 1979. This drop was the direct result of record supplies that led to a 17.3-percent decline in prices for green coffee beans and a 14.7-percent drop in processor prices for roasted coffee. There was little frost damage to the Bra zilian crop in 1980; world output was large, despite crop damage in some smaller producing nations. By yearend, the United States had more than a year’s sup ply on hand. In addition, domestic coffee consumption continued to decline. In contrast, world consumption of tea kept pace with record production, leading to a mod est 1.9-percent rise in unprocessed tea prices. Higher manufacturing costs were largely responsible for a 9.3-percent boost in the p p i for packaged tea. Packaged cocoa prices increased modestly, as falling cocoa bean prices were offset by rising sugar prices. Soft drink prices were up in both the CPI and the PPI in response to sugar prices. Cereal and bakery products were up 11.6 percent in the CPI and 11.1 percent in the p p i . Higher wheat prices during most of the second half of the year led to a 5.5-percent increase in the PPI for flour. Costs increased for many goods, especially cookies, cereals, and sweet baked goods because of skyrocketing sugar prices. De spite a record domestic crop, the price of milled rice moved up, principally because of strong export demand due to poor rice harvests in South America and the Re public of Korea. At the farm level, grain prices dropped at a 10.8-per cent annual rate during the first half of the year as world supplies were generally good. The grain embargo against the Soviet Union in January had only a tempo rary impact on prices because the Soviets removed an equivalent amount of grain from the world market through purchases from other countries. Hot, dry weather hurt U.S. grain production during the summer, sending grain prices up at a 51.7-percent annual rate during the second half. Corn production was down 16 percent from 1979, after 5 years of record crops, send ing corn prices up 26.8 percent in 1980. However, the winter wheat crop was harvested before the drought hit, and damage to spring wheat was not sufficient to pre vent a record wheat harvest in 1980. The large domestic supply of wheat counteracted poor harvests of other grains, and strong export demand for wheat resulted in a wheat price increase of less than 1 percent. Consumer prices for fresh fruits rose 7.2 percent in 1980, despite a 4.3-percent drop in the PPI for fresh fruits. A record harvest and sizable drops in the PPI for citrus fruits and apples did not fully impact retail prices by yearend. Florida orange trees had recovered from the severe frost of January 1977; however, higher costs for transportation, storage, and marketing exerted up ward pressure on retail prices. The supply situation for fresh fruits, though, was much more favorable than that for fresh vegetables. The CPI for fresh vegetables rose 20.3 percent in 1980, led by a 43.8-percent increase for potatoes. Fresh vegetable prices fell during the first quarter when supplies were more than ample. U.S. De partment of Agriculture statistics indicated that 6.9 per cent more acreage was devoted to 14 major winter vegetables over 1979 and production was up 8.2 per cent. However, reduced plantings and severe weather took their toll during the summer. Potatoes were espe cially hard hit, with the smallest crops for sweet and white potatoes since the early 1970’s. Planted acreage for 14 fresh fall vegetables was the same in 1980 as in 1979, but yields were down 4.7 percent, limiting the yearend recovery. However, tomatoes, which had suf fered damage from heat in the fall of 1979 and were in short supply at the start of 1980, went against the trend and showed a net price decrease over the year. Processed fruits and vegetables were up 8.0 percent in the CPI and 6.5 percent in the PPI. Processed fruits rose 5.9 percent at the retail level in 1980. The cost of most raw fruits being processed was fairly stable. Most of the increase was due to other raw material and production costs, especially sugar. Processed vegetables experienced a more substantial increase of 10.2 percent. Acreage contracted for the production of seven major processing vegetables was down approximately 12 percent from https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1979 levels. In addition, bad weather reduced yields and in turn the quantity packaged. Thus, the 1980 supply was considerably smaller than in 1979. Meanwhile, as with processed fruits, labor, tinplate, energy, transporta tion, and marketing costs all increased. Prices increased as the large carryover stocks from 1979 were depleted. Commodities other than food and energy Consumer goods. Both retail and producer prices for consumer goods other than food and energy increased about 10 percent in 1980, a somewhat larger increase than in the preceding year. Price increases accelerated for a broad range of goods, including used cars, appar el, textile housefurnishings, sanitary papers, cosmetics, drugs, soaps, tobacco products, and sporting goods. Home purchase and gold jewelry prices continued to climb rapidly. Prices for footwear and tires, however, increased considerably less than in 1979. (See table 5.) The home purchase component of the CPI moved up 11.4 percent over the year, second only to the 15.8-per cent annual increase recorded in 1979. The rate of in crease in this index slowed significantly in the first quarter of 1980, as record-high mortgage interest rates severely dampened both housing demand and the avail ability of mortgage credit. A resurgence in the housing market, triggered by a sharp drop in interest rates dur ing the spring, caused the increase in home prices to ac celerate through the second and third quarters. By the end of the year, record-high interest rates returned and had the same moderating impact on home prices as in the first quarter. Retail prices for new cars moved up 7.5 percent in 1980, almost identical to the 1979 increase. Producer prices, however, rose somewhat more than in the previ ous year (9.0 versus 7.3 percent). The largest increases were registered for compacts and subcompacts while prices for larger cars rose very little or not at all in re sponse to reduced demand for cars with low gas mile age. Prices for imports, which captured approximately 27 percent of the American market in 1980, were sharp ly higher, both because of the weakness of the dollar compared to the yen and demand that exceeded supplies. Price increases slowed for tires, particularly at the primary market level, largely because reduced do mestic production of automobiles depressed demand. After dropping at an annual rate of 12 percent during the first half of 1980, used car prices exploded in the second half at the second highest rate ever recorded for this index. This turnaround was all the more dramatic because, historically, used car prices have decreased af ter the introduction of new model-year cars each fall. The unusual upturn in late 1980 could be attributed to a number of factors, including: (1) a continued rise in new car prices, especially smaller, higher-mileage mod els; (2) an increase in gasoline supplies, which made the purchase of large used cars more palatable; (3) the re9 MONTHLY LABOR REVIEW April 1981 • Price Changes in 1980 Table 5. Changes in retail prices for commodities less food and energy, 1979- 1980 P e rc e n t c h a n g e C o m p o u n d a n n u a l r a t e , s e a s o n a lly a d ju s t e d e x c e p t a s n o te d , fo r 3 m o n th s e n d e d R e la t iv e C P I g r o u p in g Im p o r t a n c e Dec D e c . 1978 to to D ec. 1979 D ec. 1980 1979 — D e c . 1979 1980 M ar. June S e p t. Dec. Commodities less food and energy ................................... 100.0 8.8 9.9 9.5 7.7 12.9 9.6 Alcoholic beverages ....................................................................... Home purchase1 ........................................................................... Maintenance and repair commodities1 .......................................... Textile housefurnishings ................................................................ Furniture and bedding..................................................................... Appliances, including radio and T.V,1 ............................................ Other household equipment1 .......................................................... Housekeeping supplies1 ................................................................ Apparel commodities less footwear ............................................... Footwear......................................................................................... New c a rs ......................................................................................... Used cars ....................................................................................... Auto parts and equipment1 ............................................................ Medical care commodities.............................................................. Entertainment commodities ............................................................ Tobacco products’ ......................................................................... Toilet goods and personal care appliances' ................................. School books and supplies ............................................................ 3.0 30.1 2.4 1.5 3.5 4.4 2.6 4.2 10.9 1.9 10.8 8.2 1.8 2.3 6.4 3.1 2.1 .5 8.0 15.8 9.2 6.1 6.3 3.3 6.5 7.2 3.8 8.7 7.4 2.2 13.3 7.6 7.7 6.2 8.2 7.9 7.6 11.4 10.4 8.2 7.8 3.6 10.4 12.4 5.8 6.7 7.5 18.3 8.6 10.0 10.3 9.7 9.9 9.7 7.4 7.0 9.2 14.9 15.7 3.8 16.1 16.3 14.1 7.6 10.2 -2.0 14.0 10.2 15.3 13.8 9.3 9.5 9.8 14.9 12.5 7.6 5.8 4.1 10.3 13.0 -1.4 3.7 8.7 -12.1 3.3 10.7 9.2 10.5 10.2 7.6 8.2 14.9 12.7 10.4 7.3 5.2 9.6 11.2 8.7 9.2 15.4 39.0 11.7 10.2 11.0 2.2 10.5 27.4 5.2 9.0 7.3 .6 2.7 1.1 6.0 9.4 2.9 6.1 -3.4 62.3 5.7 8.9 6.1 12.9 9.7 -3.4 1 Not seasonally adjusted. cord-high interest rates required for new-car financing; and (4) a smaller supply of good, late-model used cars because weak demand for new cars resulted in a short age of trade-ins. Retail prices for apparel commodities other than footwear increased 5.8 percent in 1980. While moderate when compared to most other items in the CPI, this rate was still the largest annual increase since 1974. From 1975 through 1979, these prices had moved up at an av erage annual rate of just 3.2 percent. Producer price in creases for apparel also accelerated from 4.6 percent in 1979 to 8.9 percent in 1980. Major influences included the increased cost of financing inventories due to high interest rates, a substantial advance in cotton prices as a result of a domestic cotton crop that was 20 percent smaller than the year before, and a continued increase in synthetic fiber prices. On the other hand, leather footwear prices rose considerably less than in 1979, par ticularly at the primary market level, reflecting an eas ing of leather price boosts. Gold jewelry prices advanced sharply for the second consecutive year. Most of the 1980 increases occurred early in the year, before gold prices took a sharp dip in the spring. After resurging in the third quarter, produc er prices for gold jewelry declined at a 21-percent rate during the final months of the year. Prices accelerated for prescription and over-the-counter drugs— higher petrochemical prices and an increase in labor costs were among the major contributors. Higher prices for tobac co products partly reflected increased costs for leaf to bacco. Capital equipment. The Producer Price Index for capital equipment moved up 11.4 percent in 1980, the first double-digit advance in this index since the 22.3-percent surge in 1974. The acceleration from an 8.8-percent rise 10 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis in 1979 was very broad-based— most major types of capital goods rose considerably more in 1980 than in the previous year. Advances of at least 15 percent were recorded for generators, small aircraft, oilfield machin ery, plastic and rubber industry machinery, food prod ucts machinery, and chemical industry machinery. Photographic equipment, office and store machines, and commercial furniture were among the few kinds of in vestment goods which moved up less than 8 percent over the year. After adjusting for inflation, the real level of capital spending declined about 6 percent in 1980. A number of factors served to discourage capital expansion plans in 1980. The economic downturn in the first half of the year led to both sharply reduced profits and excess ca pacity in some industries. Energy-intensive industries, which had been hard hit by the steep energy price boosts from late 1978 through early 1980, often found it difficult during the recession to raise output prices to match the climb in input costs. The resulting erosion of profitability severely limited their ability to internally generate investment funds. The unusually high level of interest rates which prevailed much of the year further discouraged potential investment spending. Mitigating these negative effects somewhat was the relatively quick upturn in business activity after mid year, as many firms were sufficiently confident to con tinue their capital expansion projects. Investments by petroleum companies, other energy producers, firms in the aerospace and defense-related industries, metals pro cessors, electrical machinery manufacturers, and trans portation equipment companies were especially strong. Companies eager to install more energy-efficient ma chinery and to meet pollution abatement requirements also tried to maintain their capital spending plans. The fact that real investment spending did not drop as much in 1980 as it usually does during a recession served to limit the depth and duration of the recession. cent because of strong overseas demand and increased production in the defense and aerospace industries. Intermediate materials other than food and energy Nondurable manufacturing materials. The nondurable manufacturing materials index advanced 12.3 percent in 1980 after rising 18.0 percent in the previous year. Sharply higher world prices for crude oil led to large advances during the early months of 1980 for organic industrial chemicals, plastic resins and materials, and synthetic rubber. These prices changed very little during the rest of the year because of the impact of the reces sion and the slowdown in crude oil price rises. Among textile products, synthetic fibers prices rose 13.5 percent, about the same as in 1979, largely because of higher petrochemical feedstock costs. Because pro ducers had reduced their output in response to declin ing demand, they were able to continue passing through cost hikes. Higher prices for synthetic materials plus ris ing prices for cotton led to accelerated price increases for processed yarns and threads, gray fabrics, and fin ished fabrics. Prices for paper and paperboard continued to move up at double-digit rates in 1980, largely because of higher costs for woodpulp and energy. Woodpulp prices were sharply higher over the year as a result of reduced production of lumber. The Producer Price Index for intermediate materials less foods and energy climbed 10.0 percent from De cember 1979 to December 1980, a somewhat slower pace than in the previous 12 months. In general, prices for most items within this category tended to rise sharply during the first quarter, moderate during the middle of the year, and resume substantial increases in the fourth quarter. These price movements thus paralleled the sharp changes in the general level of eco nomic activity during 1980. High interest rates during most of the year had a negative impact on material prices; speculation in nonferrous metals and certain crude commodities was discouraged by increased bor rowing costs, and the need felt by many firms to cut their material inventories (because of high financing costs) led to reduced demand. Durable manufacturing materials. The slowdown in the rate of price increases was most evident in the durable manufacturing materials category, which rose 5.9 per cent following a 17.2-percent jump in 1979. This com paratively moderate pace was largely due to the depressed markets for housing, automobiles, and some related consumer durable goods. The PPI for finished steel mill products moved up 7.9 percent in 1980, fol lowing two years of double-digit increases. Steel industry production was reduced to about half of capacity by midyear and total 1980 shipments of steel products fell 18 percent from 1979 levels, principally because of poor demand from the automotive industry. Competitive price discounts were introduced in July for sheets, strips, and bars to stimulate sales; most of these discounts were removed at the beginning of the fourth quarter, and new increases were included as the economy strengthened. In contrast to the weakness in other steel markets, demand was very strong for steel pipes and other products used by the oil and natural gas industries. Prices for these products rose sharply during 1980. Price movements for nonferrous metals during 1980 were mixed. Heavy speculative activity led to very steep increases at the beginning of the year for gold, silver, and copper. However, soaring interest rates helped to end the boom by spring, and prices dropped sharply in subsequent months. From June to October, precious metals prices recovered some of these losses, but turned down at the end of the year as interest rates again ap proached 20 percent. Over the year, copper prices fell 15.5 percent because of poor demand from the con struction industries. Prices for lead plummeted 28.7 per cent in response to low demand from manufacturers of automobile batteries, the largest market for lead. On the other hand, primary aluminum prices were up 14.4 per https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Construction materials. The index for construction mate rials rose about 9 percent for the second consecutive year. The sharp climb in mortgage interest rates in early 1980 led to a steep decline in the rate of new private housing starts. After interest rates receded in the spring, residential construction activity picked up again; this upturn persisted through the rest of the year in spite of renewed increases in interest rates by late fall. Prices for softwood lumber, millwork, and plywood were general ly sensitive to demand from the construction industry, falling sharply in the early months of the year and then turning up in subsequent months. Prices for nonmetallic mineral products rose substantially during the first part of the year as producers passed through increased ener gy costs; prices during the latter part of the year were relatively stable, reflecting the slowdown in energy price increases. Most other construction materials such as fabricated structural metal products moved up moder ately during 1980, partly because of smaller advances in steel prices compared to 1979. Other. Among other intermediate goods, the electronic components index advanced 14.0 percent, more than in any other year on record, as higher prices for gold, alu minum, and tantalum led to increases for such products as capacitors and relays. Because poor economic condi tions prevailed during much of the year, businesses were reluctant to invest in new machinery and, instead, in vested in replacement parts to extend the usefulness of 11 MONTHLY LABOR REVIEW April 1981 • Price Changes in 1980 existing capital equipment. Large increases were regis tered for ball and roller bearings, fluid power equip ment, mechanical power transmission equipment, and nonfarm tractor parts, among other goods. Prices for photographic supplies rose sharply early in the year, then edged down somewhat, in response to the fluctu ating price of silver, which is used in making most types of camera film. Crude nonfood materials less energy Producer prices for crude nonfood materials less ener gy, which tend to be highly sensitive to changes in gen eral economic conditions, dropped at a seasonally adjusted annual rate of 18.4 percent during the first half of the year. These prices then turned up dramatically in the second half, climbing at a rate of 50.5 percent. For the year as a whole, this index rose 7.5 percent, follow ing a 15.1-percent advance in 1979. Prices for nonferrous scrap, wastepaper, and hides and skins tumbled after rising rapidly in 1979, and increases for iron and steel scrap, crude natural rubber, and iron ore were considerably smaller than those of the year before. In contrast, raw cotton prices jumped far more than in 1979, and prices for sand and gravel, leaf tobacco, and potash also recorded larger increases in 1980. After climbing 36.7 percent in 1979, nonferrous scrap prices were down 3.5 percent in 1980 because of weak domestic and export demand, reflecting the weakness in prices for copper and some other nonferrous metals. Wastepaper prices fell 13.7 percent over the year, prin cipally because of sluggish demand from domestic recy cling mills. However, increased exports and good demand for wastepaper for making insulation materials served to restrain the price decline. Prices for hides and skins moved down in the first 6 months of the year be cause of poor demand. A surge in demand from domes tic tanners and export buyers from Japan, Korea, and Taiwan led to a partial price recovery in the second half; nevertheless, the hides and skins index finished the year 11.5 percent lower than in December 1979. Iron and steel scrap prices were up 7.6 percent for the year. Sharply lower prices during the first half resulted from a marked decrease in steel mill production. Ferrous scrap prices then rebounded in the last half when supplies were tight in the face of increased domestic steel output. Crude natural rubber prices rose much less than a year earlier (5.6 percent versus 21.5 percent), in large part because of weak demand from domestic and foreign tire manufacturers, and because of slower price increases for synthetic rubber. Raw cotton prices soared 35.5 percent from Decem ber 1979 to December 1980. Most of this surge was registered in the third quarter as hot, dry weather in major domestic producing areas reduced the cotton crop by 20 percent from the 1979 level. Unusually strong export demand, particularly from the People’s Republic of China, also helped to boost cotton prices. Prices for sand, gravel, and crushed stone were up 14.4 percent for the year as energy-related costs continued to rise. Leaf tobacco prices rose 10.2 percent, partly be cause of damage to the new crop by the summer drought. Potash prices climbed even more in 1980 (21.8 percent) than the year before (18.9 percent), reflecting tight supplies and firm export demand. □ FOOTNOTES 1All previously published data for stage-of-processing indexes from January 1976 through December 1980 have been revised to reflect new stage-of-processing allocations based on 1972 input-output tables published by the Bureau of Economic Analysis, U.S. Department of Commerce. At the December 1980 OPEC conference in Indonesia, another general increase in official contract prices was announced. Saudi Ara bia raised its standard crude oil price to $32 per barrel, one-third higher than a year earlier, but still the lowest within OPEC. The highest allowed price within OPEC was set at $41 per barrel, a $4 in crease over the ceiling price in effect since June. The PPI for crude petroleum does not include prices for un controlled categories of domestic production other than low-output “stripper” wells. These excluded categories accounted for a growing proportion of total output during 1980 and by the end of the year 12 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis represented about half of total production; therefore, the PPI under estimated the actual average price for domestic crude oil. 4 “Primary stocks” refer to petroleum products stored at refineries, in pipelines, or at bulk terminals; inventories of retailers, jobbers, and so forth are excluded. The PPI for natural gas has been partly reallocated from the Crude Materials stage-of-processing category to the Finished Goods stage-of-processing category to reflect the proportion of natural gas consumed by households. This change was part of a comprehensive revision of stage-of-processing allocations, which became effective with the release of January 1981 data on February 13. 6The highest recorded average monthly contracted mortgage inter est rate occurred in May 1980. On average, there is about a 60-day lag between mortgage rate commitments and home purchase settle ments. Labor and the Supreme Court: significant decisions of 1979-80 The Court approved Congress' remedial quotas, left important safety and health issues unresolved, limited NLRA coverage of teaching professionals, and broadened the concept of work preservation; many important cases were decided by one-vote margins G regory J. M ounts Mr. Dooley said that “ . . . th’ supreme coort follows th’ iliction returns,” 1but in its 1979-80 labor cases, the Supreme Court foreshadowed the electorate’s November return to private sector emphasis with a series of cases expanding the flexibility of private sector employers and unions2 but limiting that of public sector employers.3 Some decisions resulted in expansive enforcement of constitutional rights,4 while the Court read statutory texts literally to broaden administrative discretion in some cases5and limit it in others.6 In seven of the year’s most important cases, different alliances produced decisions that hinged on one vote. Such close verdicts in cases involving health and safety standards, faculty bargaining rights, seniority system provisions, and the work preservation doctrine suggest that the new approaches established by the Court in these areas may be either broadened or trimmed, as some justices clarify their views or as the makeup of the Court changes. In the cases considering workplace health and safety standards and racial quotas, the independent-minded justices forged agreements only by combining the result of differing factions, because no more than three justices could agree on the reasons for a verdict. The Court’s splintered approach to health and safety standards pre vented a resolution of whether the costs of standards, such as for reducing worker exposure to benzene, need Gregory J. Mounts, an economist now with the General Accounting Office, wrote “Significant Decisions in Labor Cases” while on the staff of the M o n th ly L a b o r R eview . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis to be justified based on the benefits to workers’ health.7 The Occupational Safety and Health Administration’s standard-setting process probably must be modified based on the Court’s multiple opinions, but the agency and affected industries will have to await future deci sions— perhaps in the 1980-81 term— to find out exact ly how much. The decision on racial quotas was somewhat more conclusive, as the six justices who approved minority set-asides by Congress split evenly on the appropriate constitutional standard in such cases.8 Employment dis crimination cases under Title VII of the 1964 Civil Rights Act permitted wide flexibility in negotiated sen iority system provisions9 and settled important proce dural questions, including a ruling that the Equal Em ployment Opportunity Commission need not meet restrictive class certification standards.10 A pair of public-sector cases significantly altered the potential liability of State and local governments. An old law with many new twists, the Civil Rights Act of 1871 permits suits against governmental entities for al leged violations of all Federal statutory rights, not just civil rights." And municipalities may not claim “good faith” immunity as a defense in such suits.12 A third public-sector case further restricted patronage.13 In traditional labor law, the Court continued a yearearlier pattern and rejected National Labor Relations Board positions in two of three cases. But the result in all three cases expanded employer rights. The Court de nied Board-approved bargaining rights to faculty pro fessors with “managerial” responsibilities,14and rejected 13 MONTHLY LABOR REVIEW April 1981 • Labor and the Supreme Court, 1979-80 the Board’s limited interpretation of the work preserva tion doctrine applied to longshoring.15 However, the Court adopted a new n l r b policy that prohibits sec ondary picketing of a struck product if it will have a se vere economic impact on a neutral employer.16 The Supreme Court also decided a wide range of issues concerning government benefit programs. In con trast to the variegated pattern in other areas, nearly ev ery decision involving benefits expanded coverage or made benefits more available by removing restrictions created by legislatures and courts. Safety and health The Occupational Safety and Health Administration celebrated its 10th anniversary in 1980, winning one of two Supreme Court cases challenging its interpretation of the 1970 health and safety law. Now, the agency en ters its second decade facing two major sources of un certainty: the Supreme Court has been unable to agree on how health and safety standards must be justified; and the new Administration may approach OSHA regu latory policies differently than did President Carter. Early in the year, the Court resolved a conflict among the Circuits by upholding an OSHA regulation giving workers the right to refuse to perform hazardous jobs if they reasonably believe that there is no other way to avoid risk of serious injury or death.17 Although the OSH act does not mention a right to refuse to work under unsafe conditions, Justice Potter Stewart’s opin ion for a unanimous Court reasoned that the Secretary of Labor had the power to find such an implied right in the law because Congress had intended to prevent inju ries and to require employers to eliminate dangers in the workplace. However, the Court made clear that em ployers have no obligation to pay workers for the time they have refused to work. What the Court characterized as its liberal interpreta tion of the health and safety law in Whirlpool Corp. did not last. In American Petroleum Institute,18 the Court took its first look at the complicated process of setting health and safety standards without resolving much. Al though it was expected to answer several questions, in cluding whether and when the benefits of a standard must justify its costs, the decision had only one legal outcome: OSHA’s attempt to further reduce worker ex posure to benzene was impermissible. In reaching its 5-4 verdict on the benzene standard, the Court pluarality (five justices split three ways in explaining their vote) appeared to seriously undermine OSHA’s standard-setting procedure for carcinogens. The Secretary of Labor had relied on the act’s language re quiring the most protective standard feasible for toxic substances.19 But the Court’s lead opinion, written by Justice Stevens and joined by Chief Justice Warren Bur ger and Justice Stewart (and in part by Justice Powell), 14 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis found that the act initially requires all standards to be “reasonably necessary or appropriate to remedy a sig nificant risk” to workers’ health or safety. After making this “threshold determination,” the Secretary may select a standard geared to eliminate the “significant risk of harm,” Stevens wrote. But he explicitly rejected OSHA’s policy on regulating carcinogens, which sought stand ards strict enough to produce a risk-free work environ ment. The law was not intended to provide such protec tion, Stevens declared. Because the Secretary had failed to produce “substantial evidence” that a signifi cant risk exists with the old benzene exposure limits (10 parts per million parts of air), Stevens refused to con sider the further question of whether the benzene stan dard was economically feasible. The law is unclear as to the meaning of economic feasibility, and the Circuits have split on the question. Some have held, as the Fifth Circuit had when consider ing the benzene case, that OSHA must use some cost / benefit approach in creating standards for industry.20 Other Circuits have ruled that the standards are eco nomically feasible as long as an industry is not faced with massive economic dislocation.21 There is a wide gap between the two approaches, and the Court will have another opportunity to resolve the question during its 1980-81 term when it reviews a District of Columbia Circuit Court ruling upholding OSHA’s cotton dust stand ard.22The D.C. appeals court found that a standard can be economically feasible even if compliance results in the demise of some employers within an industry. Some of the justices used the benzene ruling to ex press their general views on the economic feasibility is sue. Powell’s concurring opinion supported the use of cost/benefit analysis to justify OSHA standards. The Chief Justice, in his own concurrence, also compared the benefits and costs of a standard, but in far more general terms. The four dissenters, in an opinion by Jus tice Marshall, noted that the law does not specifically require cost/benefit analysis. A standard is feasible, Marshall wrote, “if it is capable of achievement, not if its benefits outweigh its costs.” Thus, these four may need the support of only one other justice to prevail on this issue when the Court considers the cotton dust standard. Constitutional quotas, civil rights For the third consecutive term, the Supreme Court addressed the sensitive question of whether goals and quotas are permissible tools to correct racial and ethnic imbalances. Based on the line of cases, quotas are prop er tools in some hands but their use by many others in volves unanswered questions. Public schools may not use rigid admissions quotas, a divided Court ruled in 1978, but race may be a factor in the selection of stu dents.23 Within certain limits, the 1979 Weber ruling allowed private employers and unions to voluntarily adopt racial quotas in job training programs.24 In 1980, the Court ruled that Congress has the authority to use quotas to remedy past discrimination, reasoning that the 14th Amendment’s requirement of equal protection means that groups historically denied this right may be given special treatment.25 The Court’s incremental ap proach to deciding how far society can go in favoring minorities passed a critical constitutional test with this most recent ruling. Even though the six justices approv ing quotas split 3-3 on precisely when they are consti tutional, the ruling made clear that properly devised minority quotas do not violate the constitutional rights of others in society. Some of the remaining questions concerning quotas, such as whether and when other governmental authorities besides Congress may use them in remedial schemes, may be answered by the Court in its 1980-81 term.26 Last term’s case arose when white contractors chal lenged a provision of the 1977 Public Works Employ ment Act setting aside 10 percent of available funds for minority business enterprises; those owned or operated by U.S. citizens who are “Negroes, Spanish-speaking, Orientals, Indians, Eskimos, and Aleuts.” Congress acted to remedy the effects of prior discrimination, and its unique constitutional power to enforce equal protec tion guarantees permits new approaches— “such as the limited use of racial and ethnic criteria” — to achieve this objective, Chief Justice Warren Burger’s lead opin ion concluded. Burger, joined by Justices Powell and White, reasoned that the impact on white contractors was not an unreasonable burden, even though it fell on many not guilty of prior discrimination. He also found that administrative provisions that waived the quotas when qualified minorities were unavailable reduced the potential for abuse. Questions about whether the law’s coverage of specific disadvantaged groups was appropri ate must be decided in other cases, Burger wrote. Writing for the second three-man bloc, Justice Mar shall approved the quotas using a much broader constitutional test he first developed in his Bakke opin ion. As long as remedial racial classifications “serve im portant governmental objectives and are substantially related to these objectives,” they are constitutionally permissible. The 10-percent set-aside for minorities in Fullilove fell well within the limits of this standard, he concluded. The significance of a split opinion, offering two rationales for the same result, is the freedom— some say confusion—it creates for lower court judges confronted with similar questions in different settings. For example, the Supreme Court’s multiple Bakke opin ions have been cited in rulings upholding voluntary ra cial quotas adopted by public employers.27 On the opening day of its 1980-81 term, the Court refused to review a California Supreme Court ruling that approved https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis the voluntary use of quotas by a county employment agency following administrative findings that its racially imbalanced work force resulted from prior discrimina tion. The case could signal the direction the Court will take in a similar California case it has agreed to review.28 Until these questions are more fully resolved, Fullilove allows Congress—if not other governmental authorities —to use remedial quotas in the allocation of funds for jobs, housing, education, and perhaps other areas. In cases arising under Title VII of the 1964 Civil Rights Act, the Court established a broad interpretation of the permissible provisions of a “bona fide” seniority system and narrowly ruled that the Equal Employment Opportunity Commission need not meet restrictive proce dural criteria in filing class action suits. Three other cases resolved important procedural issues under Title VII. “Bona fide” seniority systems are exempt from the antidiscrimination provisions of Title VII. The Court’s 1977 Teamsters decision approved a two-track seniority system as bona fide, even though it perpetuated the ef fects of pre-act discrimination.29The ruling created much uncertainty about what other provisions could be in cluded in bona fide plans. In California Brewers Assn.,30 the Court finally provided some guidance. In addition to rules that operate on the basis of employment longevity, a seniority system may also include “ancillary” rules that determine when and how the “seniority time clock begins ticking,” what work time will “count” toward benefits, and when and how accrued seniority can be forfeited, a 4 -3 majority ruled. As a result of this broad definition of acceptable pro visions, the Court approved the use of a rule requiring brewery employees to accumulate 45 weeks of work during a year for advancement to a high-benefit seniori ty track. Black workers had charged that the 45-week rule had a discriminatory impact, in violation of Title VII. However, Justice Stewart’s majority opinion stressed the freedom of collective bargaining parties to adopt such provisions. He also made clear that negoti ated provisions acceptable under Title VII may be used as vehicles of illegal discrimination. Thus, California’s black brewery workers remain free to show in district court that the operation of the 45-week rule produced differences in employment conditions resulting from an intention to discriminate. The standard procedural rules governing class certi fication require, in part, that the group be sufficiently large and that all members share important interests. In a narrow 5 -4 ruling, the Supreme Court resolved a conflict among the Circuits and found that the EEOC need not meet such procedural requirements because it has separate authority under Title VII to file suits on behalf of groups of aggrieved persons.31 One especially sensitive aspect of this issue is that the standard procedural requirements for class certification 15 MONTHLY LABOR REVIEW April 1981 • Labor and the Supreme Court, 1979-80 (Rule 23 of the Federal Rules for Civil Procedure) make any judgment in subsequent suits binding on all class members; no such requirement exists under Title VII. Thus, employers expressed concern over the possibility of additional or supplemental claims by EEOC class ac tion members unsatisfied with class-wide relief. Writing for the Court, Justice Byron White refused to restrict EEOC’s ability to bring class actions, but he instructed lower courts to play an active role in determining whether subsequent private suits by unsatisfied EEOC class members occur. Where the EEOC has prevailed in its action, a court may require “any individual who claims under its judgment to relinquish his right to bring a separate private action.” Except where lower courts ignore this advice, it should ameliorate employ ers’ equity concerns for double recovery by discrimina tion victims. In N. Y. Gaslight Club?2 the Court increased the likelihood that discrimination victims can recover the costs of their successful litigation. A 7 -2 majority ruled that, in States that have employment discrimination agencies, a successful plaintiff in State court may file a Federal Title VII suit for an award of attorney’s fees if State law does not provide for such an award. The Court reasoned that the complementary nature of State and Federal enforcement mechanisms permits those re ceiving inadequate relief in State courts to seek com plete relief in Federal courts. All plaintiffs may seek attorney’s fees once they reach a Federal Court, so the Court found no reason to block such access simply be cause adequate relief was received at the State level. In a second case involving attorney’s fees, the Court rejected a novel approach by a district judge that would award fees to prevailing parties in Title VII cases when the proceedings had been “vexatiously multiplied.”33 A separate law allows the assessment of “excess costs” for creating such delays,34 and the lower court found that attorney’s fees are part of the costs. Even though the Supreme Court refused to award fees by combining the two laws, Justice Powell and four others found that attorney’s fees may be awarded against lawyers who “willfully abuse judicial process,” such as by refusing to comply with discovery orders. The five justices agreed that Federal courts have the “inherent power” to assess fees as part of the “bad faith” exception to the American Rule against recovery of counsel fees. Both this case and N. Y. Gaslight Club clearly expand the opportunities for Title VII litigants to recover court costs, creating additional incentives for alleged victims to bring suits. But the assessment of fees for the abuse of judicial process should provide an incentive for more timely resolution of Title VII cases, perhaps offsetting the burden of fatter dockets in lower courts. The fourth procedural case under Title VII involved 16 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis the length of time available for filing Federal claims when deferral to a State employment discrimination agency is required. Title VII provides that, in a deferral State, a complainant must file charges with the EEOC within 300 days of the allegedly unlawful incident; the law also provides that no charges can be filed with the EEOC until 60 days after the filing of charges with a State agency. When charges were filed with the EEOC after 291 days, and the case was then referred to a State agency, the Supreme Court ruled that the charge was not filed on time with the EEOC because the 60-day deferral peri od for State charges pushed the technical EEOC filing date beyond the legal 300-day limit.35 Justices Blackmun, Marshall, and Brennan argued in dissent that the Court’s interpretation effectively reduces the time for fil ing EEOC charges in deferral States to 240 days. Public-sector cases Three public-sector cases decided by the Court in 1979-80 expanded the rights of individuals in dealing with State and local governments. A pair of cases, not the subject of much media attention, fundamentally al tered the potential liability of these governmental enti ties. In one case, the Court ruled that State and local governments can be sued not only for alleged violations of constitutional and Federal civil rights but also for al leged violations of any other federally created right. The second ruling denied municipalities a qualified “good faith” immunity defense in such suits. Increased rights for individuals and corresponding increased liability for State and local governments are certain to play a key role in public employment issues. A third public-sector decision further reduced the number of patronage jobs controlled by elected officials. In Maine v. Thiboutot?ba 6-3 majority ruled that the Civil Rights Act of 1871 creates liability for State and local government violations of any Federal statutory right. The 1871 law provides that anyone acting under the color of State law to deprive another person’s “rights, privileges, or immunities secured by the Consti tution and laws” is subject to liability. Justice Brennan’s majority opinion found “and laws” to be a straightfor ward indication that Congress wanted to provide a right of action to enforce all rights created under Federal laws. Thiboutot specifically approved the right to file a claim against State officials for incorrectly computing benefits under the Social Security Act. But the list of federally created rights now enforceable under the 1871 law is long; it includes “any Federal-State cooperative program,” according to Justice Powell’s vigorous dis sent. Thus, cooperative public-works programs and the Comprehensive Employment and Training Act pro grams, among others, may now be potential sources of liability for the States, counties, and cities involved in their administration. In expanding private rights under the 1871 law, the Court also ruled that attorney’s fees could be awarded by State courts to prevailing parties in all actions under the law. But, in a companion case that permitted such fee awards by a Federal court based only on a consent decree,37 the Court left open whether Federal courts can award fees against States based on a statutory, non-civil rights claim under the 1871 law. The 11th Amendment may bar such an award, but the increased litigation now expected in this area could soon produce a case that may answer this question. In 1978, the Supreme Court overturned a 17-year-old interpretation of the 1871 Civil Rights Act and held that municipalities can be sued as “persons” under the law.38 Last term, in a narrow 5 -4 ruling, the Court found that cities cannot claim “good faith” immunity as a defense in such suits.39 Writing for the Court, Justice Brennan reasoned that the law was designed to protect against misuse of State and local powers, and permit ting immunity would undermine that purpose. Brennan made clear that government officials may still claim such a defense in cases under the 1871 law, indicating that when a municipality deprives individuals of their constitutional or Federal rights “the public, as repre sented by the municipality,” must bear the costs. The two-way expansion of the potential liability of State and local governments may have important impli cations for the role these government entities choose to play in administering Federal programs and in provid ing other services. Pressure on local governments to en sure that neither Federal nor constitutional rights are infringed could increase administrative costs, as pro gram procedures are re-examined and new controls are implemented. The cost of additional court suits can eas ily upset a carefully balanced budget. And with public finances limited by taxpayer resistance, additional ex penditures could mean fewer— but, perhaps, fairer— programs and services. Patronage systems suffered a strong blow in 1980, as once again the Supreme Court upheld the rights of indi viduals over those of governmental authorities. The Court refused to permit a newly elected Democratic county administration to replace two assistant public defenders appointed by the defeated Republican of ficials.40 Expanding public employees’ First Amendment protections against political coercion first announced in Elrod v. Burns,4' a 6-3 Court found that the attorneys, judged competent in their jobs, could not be dismissed solely because of their political beliefs. Which public jobs can still be controlled for patron age purposes? The confidential or policymaking nature of a job is not the criterion for patronage positions, Jus tice Stevens wrote for the Court; rather, a hiring au https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis thority must demonstrate that party affiliation is “an appropriate requirement for the effective performance of the public office involved.” However, the types of posi tions where effectiveness is related to party affiliation re mains uncertain. Stevens acknowledged only that election judges and “various assistants” of State gover nors, such as press secretaries, speech writers, and lob byists, are examples of permissible patronage jobs, but he created no clear line. One writer suggested that the Court has adopted and expanded Oliver Wendell Holmes’ concept of “Jobbism,” where a worker’s political beliefs do not in terfere with the performance of a job— even if that job involves carrying out the policies of a competing politi cal party. Under the Court’s present approach, “it’s an open question whether a newly elected governor, or president, may appoint his own cabinet,” wrote Robert M. Kaus in “Zbig for Life: The Way the Supreme Court is Going That’s What We Could be Stuck With.”42 Al though Stevens’ opinion is unlikely to lead to court suits by cabinet officials of an out-going administration, the question of when party affiliation influences the ef fectiveness of a public employee’s performance is bound to raise some interesting future cases that should help reduce the present uncertainty. Indeed, some officials appointed by President Carter may be encouraged to try and keep their jobs by a re cent district court decision. Mahlon M. Delong was appointed to a Schedule A, Federal “plum book” job by President Ford. Based on the Supreme Court’s rul ing in Brand v. Finkel, a district court found that Delong was illegally fired by the Carter Administration and must be reinstated as the Maine director for the Farmers Home Administration.43 As a result, the Depu ty General Counsel for the Federal Office of Personnel Management, Paul Trause, expects some Carter appoint ees to go to court: “I don’t expect to be deluged, but I think it’s a real consideration.” Traditional labor law The NLRB’s expertise in settling labor relations issues under the National Labor Relations Act has been fre quently recognized by the Supreme Court. But in its 1979-80 term, the Court continued a year-earlier pat tern and rejected two of three Board interpretations of the act, so that all three decisions resulted in greater flexibility for employers. In both cases lost by the Board, however, the Court achieved only a bare 5-4 majority. In Yeshiva,44 the Supreme Court ruled that the act’s coverage of university faculty is far more limited than the Board claimed. The Court supported a Second Cir cuit ruling that faculty members who play dominant decisionmaking roles in matters of hiring, tenure, sab baticals, terminations and promotions as well as in aca17 MONTHLY LABOR REVIEW April 1981 • Labor and the Supreme Court, 1979-80 demic areas are “managerial” employees excluded from NLRA coverage. The Board had argued that the faculty exercised “independent professional judgment” in han dling its decisionmaking responsibilities, but the Court rejected this approach in finding that the interests of faculty members and those of the university could not be separated. Justice Powell’s majority opinion stressed that the purpose of the managerial exclusion was to preserve for an employer the undivided loyalty of those employees who carry out management policies. In applying this ra tionale to the employment structure at private universi ties, the Court failed to provide clear lines to determine when a faculty member is aligned with management, al though Powell suggested that tenure status in some schools might distinguish managerial faculty members. For 9 years, NLRB decisions had approved virtually all faculty bargaining units, but the uncertainty created by Yeshiva requires case-by-case reviews by the Board, certain to dampen union organizing efforts among pri vate institutions. Public colleges and universities are covered by State labor laws, and any change in cover age must come in State courts or legislatures. Without doubt, the most significant aspect of Yeshiva is whether the “managerial” exclusion may now reach other professional employees. The Taft-Hartley Act cre ated the original exemption for “supervisors,” which was expanded by Court-approved Board decisions to cover those “who formulate and effectuate management policies by expressing and making operative the deci sions of their employees.”45 The “managerial” activities of the Yeshiva faculty may be similar to the responsibil ities held by some nurses, lawyers, doctors, engineers, and other professionals currently bargaining under the act. More precise limits on the managerial exclusion are bound to emerge through increased litigation by man agements seeking to avoid collective bargaining. Ironi cally, the greater decisionmaking authority among professionals— such as university faculty— that resulted from the availability (if not the use) of collective bargaining may be the basis for finding their interests aligned with those of management. However, Yeshiva's narrow 5-4 verdict suggests that a Court majority may not support a broad expansion of the managerial exclu sion. Technological innovation carries conflicting conse quences for economic growth and for the continuity of employment. As pressures increase to combat sagging productivity growth through policies to stimulate inno vation, attempts to preserve traditional work may also increase. Possibly anticipating such a scenario, the Court’s ruling in N L R B v. International Longshoremen's Assn.4b recognized the important role of collective bargaining in resolving such conflicts and outlined a broad new interpretation of the work preservation doc 18 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis trine that should permit innovative solutions to limit job losses following the introduction of new technolo gies. The n l r b ruled invalid an agreement between the I LA and the shipping industry granting the union exclu sive rights to pack and unpack containerized cargo within 50 miles of a port. The Board reasoned that such work was not traditional longshoring work and that the union illegally sought to acquire the work traditionally done by freight consolidators and trucking companies. However, the High Court, noting that container tech nology had completely replaced the traditional method of handling goods between ocean and motor transporta tion, found that the Board had incorrectly analyzed the work the union sought to preserve. On remand, the Board must reexamine the ILA agreement based on the Court’s advice that the work preservation doctrine must protect union actions that “attempt to accommodate change while preserving as much of their traditional work as possible.” If the Board finds the i l a contract provisions valid, a second question will be whether the shipping industry has the “right to control” the assignment of work.47 Justice Marshall hinted in a footnote to his majority opinion that the Board might frame the question in terms of the shippers’ authority over containers they own or lease in their “possession and control.”48 But other issues such as government regulatory constraints cloud the resolution of the control question. Regardless of how the Board now decides the ILA case, the Court’s decision clearly broadens the scope of permissible work preservation agreements. In earlier cases such as National Woodwork and Pipefitters,49 unions had completely rejected an innovation in efforts to preserve traditional work. Thus, it appeared that only exact work patterns could be preserved through negotiated contracts. Now, however, the Court has opened the way for agreements that can preserve work generically the same as that performed before an inno vation. The flexibility of the new approach was also en hanced by Marshall’s comment that valid agreements need not be the “most rational or efficient response to innovation.” As in Yeshiva, however, the 5-4 majority in this case suggests that the new standard may extend only as far as the views of a single justice. The views of the NLRB were adopted by the Supreme Court when it declared that a union may not picket a struck product handled by a neutral secondary employ er if the product accounts for substantially all of the employer’s business.50 The Court’s 1974 Tree Fruits de cision had permitted a union to picket a struck product at a secondary location (apples in a retail store).51 But the Court reasoned that this simple rule must be condi tioned on the relationship of the product to the neutral employer’s revenues. Justice Powell explained for the 6 - 3 majority that when product picketing “reasonably can be expected to threaten neutral parties with ruin or sub stantial loss” it illegally coerces them to cease dealing with that product or with the primary employer. The threshold criterion for when product picketing at secondary locations becomes illegally coercive remains unclear. Must a union gain access to the employer’s books and use some quantitative interpretation of “sub stantial” before being reasonably certain that picketing is legal? In the case before the Court, revenues from sales of the struck product accounted for more than 90 percent of the neutral employers’ gross income. But is 75 or even 50 percent still “substantial”? The threshold of illegality is also crossed when “ruin or substantial loss” of a neutral employer is a “reasonably expected” outcome of secondary picketing. Must a union evaluate its potential success in influencing consumers? Presum ably the Board and the lower courts will have to answer these questions and others that emerge concerning spe cific products and their economic contribution to the neutral employer’s business. The Court also considered the First Amendment speech questions involved in limiting secondary pic keting. Powell’s majority opinion found the new stand ard constitutionally sound basically because it differed little— on the speech question—from the existing limits on secondary picketing. Justices Blackmun and Stevens agreed that the new economic impact limitation on sec ondary picketing was constitutional, but both were troubled by the Court’s easy acceptance of additional content-based speech restrictions. During the 1979-80 term, the Court struck down an Illinois law as uncon stitutional because it prohibited picketing of residential homes based on the content of the picketers’ speech.52 Generally, speech rights have only been limited based on time, place, and manner. In labor law, the Supreme Court first limited speech based on content (primary product picketing) in Tree Fruits, and Blackmun and Stevens appeared wary of establishing precedents that could be used in other areas. Another case decided under the NLRA settled ques tions about the liability of parent unions for damages caused by a local’s unauthorized strike. Unanimously the Court ruled that a parent union can be held liable for such damages when it can be proved that the local acted with the express or implied authority of the par ent. Damage liability can also result from a parent union’s failure to fulfill contractual obligations to re solve unauthorized strikes, the Court found in resolving a conflict among the circuits.53 Under both tests, the United Mine Workers of America were found not liable for damages resulting from a series of wildcat strikes by locals between 1969 and 1973: Justice Brennan’s opinion emphasized that parent union liability under the NLRA exists only when a local https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis acts as its agent. However, his analysis of the potential liability arising from contract language left some impor tant questions. Brennan found that the UMW’s obligation to “main tain the integrity” of the contract did not require attempts to resolve the unauthorized strikes, largely be cause such a duty to intervene had been specifically de leted from the 1952 contract. It is unclear whether an “integrity” clause that resulted from a different bargaining history could create an obligation for parent union intervention. Thus, where contract language is imprecise and the negotiating history offers no definitive answers, a parent union could be held liable for failing to intervene in a local’s unauthorized strike. Injury compensation The two worker compensation cases decided by the Court last term overturned unconstitutional restrictions on the availability of benefits to injured workers or their survivors. Likewise, a pair of cases under the Fed eral injury compensation law for maritime workers also resulted in greater availability of benefits. An unusual case under another Federal law found the Court agree ing with actions that might curb the amount of com pensation awards to injured workers or their survivors. The Missouri workers’ compensation law required a dependency test for widowers seeking benefits based on their wives’ former earnings, but did not require such a test for similarly situated widows. The Supreme Court struck down this unequal treatment as unconstitutional sex discrimination,54 extending to State benefit laws the equal protection analysis used to void similar sex-based provisions for the distribution of Federal social security benefits.55 The 8-1 ruling acknowledged that the Mis souri provision discriminated both against working women, by failing to provide the same protection for their families that men receive, and against men who survive their working wives. The Court left State courts to decide whether to require a dependency test for wid ows or to drop it altogether. In the second workers’ compensation case, the Court ruled that an injured worker may obtain supplemental or additional benefits from a second jurisdiction that is willing to pay.56 Although seven justices agreed on this result, they split 4 -3 on their approach. Justices Ste vens, Brennan, Stewart, and Blackmun would have overruled a 1943 High Court ruling that the Full Faith and Credit Clause of the Constitution precludes com pensation from one State following receipt of benefits from another.57 However, Justices White and Powell and the Chief Justice pursued a more narrow course, agree ing with a 1947 case that benefits from a second juris diction are permissible when not expressly prohibited by the law of the first jurisdiction.58 In this case, Virgin ia’s compensation law was found not to prevent addi19 MONTHLY LABOR REVIEW April 1981 • Labor and the Supreme Court, 1979-80 tional benefits from other jurisdictions. In dissent, the unusual combination of Justices Marshall and Rehnquist supported the Court’s 1943 ruling that payment of secondary compensation claims violates the Full Faith and Credit Clause. Under the Longshoremen’s and Harbor Workers’ Compensation Act, the Court ruled unanimously that Congress intended coverage to be based on the nature of the work performed rather than based solely on its location. Thus, “maritime employment” for the pur poses of the act includes all workers involved in moving cargo between ocean and land transportation, even though some of this traditional longshoring work may occur away from the water’s edge.59 Another unanimous decision found that State com pensation plans may cover the same land-based maritime workers covered by the Federal injury com pensation scheme.60 The Court reasoned that the exten sion of the Federal law in 1972 to cover such workers was meant to complement not to supplant State com pensation systems. The calculation of damage awards for a worker’s death or injury has generally been based on expected gross income in claims under the Federal Employers’ Liability Act. But during 1980, the Supreme Court sid ed with a vanguard of inflation-fighting lower courts and ruled that after-tax future earnings of a victim could be calculated and presented to the jury by the defending employer.61 Justice Stevens wrote for the Court that juries are now sufficiently sophisticated to deal with the complexities of future tax liabilities. Awards under the law are not taxed, and Stevens rea soned that juries may be told this to prevent inadver tently large awards that include the imaginary tax consquences. Justices Blackmun and Marshall argued that the Court simply reduced penalties for defendents in such cases, whereas Congress probably intended only victims to benefit from the tax break on awards. Other benefits, Federal laws Vested pension benefits are “nonforfeitable” and thus insured under provisions of the Employee Retirement Income Security Act even if the pension plan was termi nated before the act took full effect and contained a provision disclaiming employer liability for insufficient assets, the Supreme Court ruled.62 Justice Stevens wrote for a narrow 5-4 majority that disclaimers of employer liability protect against direct claims by employees, but that even during the phase-in period of benefit insurance Congress intended employers to be liable for up to 30 percent of their net assets to compensate the ERISA in surance fund for benefits paid. Because Congress knew that most plans contained disclaimers, its creation of the reimbursement plan made clear that benefits were insured where the employer had disclaimed liability. 20 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Although the decision directly affects only the partici pants of plans terminated before 1976, Pepperdine Uni versity law professor R. Wayne Estes has suggested that the decision “sets a tone for strict judicial interpretation of the statute that may have a far-reaching effect.63 Veterans whose employment is interrupted by their military service are entitled to seniority benefits calcu lated as if they had been continuously employed. The Supreme Court has ruled that such seniority benefits in clude severance pay64 and pension benefits65 but not va cation benefits.66 In 1980, a unanimous Court ruled that the steel industry’s supplemental unemployment benefits are perquisites of seniority, and military service must be included in the calculation of SUB payments.67 Justice Marshall’s opinion for the Court satisfied both prongs of the test established in Alabama Power:68 it is reasonably certain that steel industry SUB benefits would have accrued to an employee who entered military ser vice; and because they offer lay-off protection initially based on time worked, SUB benefits are a reward for length of service. In U.S. v. Clark,69the Court made it easier for illegiti mate children of Federal civil service employees to obtain survivors’ benefits under the Civil Service Retire ment Act. A 7 -2 majority ruled that the law’s requirement that “recognized natural” children “lived with” their parents to be eligible for a survivor’s annu ity means only that they must have once lived in a nor mal parent-child relationship—not necessarily at the time of the worker’s death. Although not an explicit de pendency requirement (which would raise troublesome constitutional issues), the Court’s reading of the “lived with” provision establishes some basis for the economic support intended to flow to the dependent survivors of a Federal worker. During its 1979-80 term, a unanimous Court upheld the constitutionality of the Labor Department’s practice of using fines assessed for violations of child labor laws to help defray the cost of enforcing these laws.70 Al though the Court has found that Fifth Amendment due process requirements prohibited such self-supporting ac tivities for judicial or quasi-judicial decisionmakers,71 Justice Marshall wrote for the Court that child labor law enforcers act more like prosecutors because all em ployers fined under the law have an opportunity for a de novo review by an administrative law judge. The Court left open the question of what constitutional lim its may exist on the financial or personal interests of prosecutors. Employment discrimination issues sometimes arise in unusual legal contexts. In a case under the Emergency School Aid Act, the Court ruled that Federal funds may be denied to elementary and secondary schools based on statistical evidence of a disparate racial impact in the hiring, promotion, or assignment of employees.72 The Court found that discriminatory impact—not nec essarily intent— should trigger a fund cutoff because Congress intended to eliminate de facto as well as de jure minority group segregation and isolation. The Court suggested that schools could possibly rebut a sta tistically shown disparate impact by proof of “educa tional necessity,” analogous to the “business necessity” justification permitted under Title VII of the 1964 Civil Rights Act. □ FOOTNOTES ' Finley Peter Dunne, M r. D o o le y 's O p in io n s (St. Clair Shores, Mich., Scholarly Press, Inc., 1977), reprint of original 1900 edition. Private employers gained greater flexibility in contesting health and safety regulations, I n d u s tr ia l U nion D ep t. A F L -C I O , v. A m e ric a n P e tr o le u m I n stitu te , 48 U.S.L.W. 5022 (U.S., July 2, 1980), and in pre venting unionization of employees with some managerial responsibili ties, N L R B v. Y esh iva U niv., 48 U.S.L.W. 4175 (U.S., Feb. 20, 1980). Private employers and unions were jointly provided new freedoms to preserve traditional work, N L R B v. I n te r n a tio n a l L o n g sh o re m e n 's A ssn ., 48 U.S.L.W. 4765 (U.S., June 20, 1980), and to structure se niority systems, C a lifo r n ia B re w e r s A ssn. v. B ry a n t, 48 U.S.L.W. 4156 (U.S., Feb. 20, 1980). ' State and local government employers became liable for violations of all Federal statutory rights, M a in e v. T h ib o u to t, 48 U.S.L.W. 4859 (U.S., June 25, 1980), and were denied “good faith” immunity in such cases, O w en v. C ity o f In d e p e n d e n c e , M o ., 38 U.S.L.W. 4389 (U.S., Apr. 16, 1980). 4 In F u llilo v e v. K lu tz n ic k , 48 U.S.L.W. 4979 (U.S. July 2, 1980), congressionally imposed quotas were approved to enforce the equal protection rights of minorities; B r a n d v. F in k el, 48 U.S.L.W. 4331 (U.S., Mar. 31, 1980), expanded public employees’ first amendment protections against dismissal for political reasons; and W en g ler v. D ru g g ists M u tu a l Ins. Co., 48 U.S.L.W. 4459 (U.S. Apr. 22, 1980), found unconstitutional sex discrimination in a workers’ compensation law by extending the equal protection analysis developed in challenges to Federal benefit laws. The Court broadened administrative discretion in G e n e ra l T ele 48 U.S.L.W. 4513 (U.S., May 12, 1980), allowing EEOC to use special, less restrictive class certification procedures; W h irlp o o l C orp. v. M a rs h a ll, 48 U.S.L.W. 4189 (U.S., Feb. 26, 1980), upholding a Labor Department regulation that allows employees to refuse dangerous work even though the OSH act does not specify such authority; and N L R B v. R e t a il S to r e E m p lo y e e s U nion , L o c a l 1001, 48 U.S.L.W. 4796 (U.S., June 20, 1980), approving an NLRB policy that limits secondary boycotts based on the potential economic loss for the neutral employer. ’ I n d u s tr ia l U n ion D e p t., A F L - C I O v. A m e r ic a n P e tr o le u m I n stitu te , 48 U.S.L.W. 5022 (U.S., July 2, 1980), limiting OSHA’s regulatory authority over toxic substances; N L R B v. Y esh iva U n iversity, 48 U.S.L.W. 4175 (U.S., Feb. 20, 1980), restricting NLRB jurisdiction over university faculty; M a in e v. T h ib o u to t, 48 U.S.L.W. 4859 (U.S., June 25, 1980), creating liability for State and local government viola tions of Federal laws; and M o h a sc o C orp. v. S ilver, 48 U.S.L.W. 4851 (U.S., June 23, 1980), limiting when the EEOC may act on charges first filed with a State agency. p h o n e Co. o f th e N o rth w est, Inc. v. E E O C , 11 n d u s tr ia l U n ion D e p t., A F L - C I O v. A m e r ic a n P e tr o le u m In stitu te , 48 U.S.L.W. 5022 (U.S., July 2, 1980), see M o n th ly L a b o r R ev ie w , September 1980, pp. 53-54. * F u llilo v e v. K lu tz n ic k , 48 U.S.L.W. 4979 (U.S., M o n th ly L a b o r R ev ie w , September 1980, pp. 54—56. July 2, 1980), see C a lifo r n ia B re w e r s A ssn. v. B ry a n t, 48 U.S.L.W. 4156 (U.S., Feb. 20, 1980), see M o n th ly L a b o r R ev ie w , June 1980, pp. 51-52. 10 G e n e ra l T e le p h o n e Co. o f th e N o rth w est, Inc. v. E E O C , 48 U.S.L. W. 4513 (U.S., May 12, 1980), see M o n th ly L a b o r R ev ie w , August 1980, pp. 45-46. " M a in e v. T h ib o u to t, 48 U.S.L.W. 4859 (U.S., June 25, 1980). I! O w en v. C ity o f In d e p e n d e n c e , M o., 48 U.S.L.W. 4389, (U.S., Apr. 16, 1980). " B r a n d v. F in k el, 48 U.S.L.W. 4331 (U.S., Mar. 31, 1980), see M o n th ly L a b o r R ev ie w , August 1980, pp. 44-45. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 14N L R B v. Y esh iva U niv., 48 U.S.L.W. 4175 (U.S., Feb. 20, 1980), see M o n th ly L a b o r R ev ie w , April 1980, pp. 57-58. ' N L R B v. I n te r n a tio n a l L o n g sh o re m e n 's A ssn ., 48 U.S.L.W. 4765 (U.S., June 20, 1980), see M o n th ly L a b o r R ev ie w , November 1980, pp. 46-47. 16N L R B v. R e t a il S to r e E m p lo y e e s U nion, L o c a l 4796 (U.S., June 20, 1980), see M o n th ly L a b o r 1980, pp. 47—48. 1001, 48 U.S.L.W. R ev ie w , November 17 W h irlp o o l C orp. v. M a rs h a ll, 48 U.S.L.W. 4189 (U.S., Feb. 26, 1980), see M o n th ly L a b o r R ev ie w , April 1980, p. 57. 18 I n d u s tr ia l U n io n D e p t., A F L - C I O v. A m e r ic a n P e tr o le u m In stitu te , 48 U.S.L.W. 5022 (U.S., July 2, 1980), see M o n th ly L a b o r R eview , September 1980, pp. 53-54. 1929 U.S.C. Sec. 655(b)(5). A m e r ic a n Iro n a n d S te e l I n s titu te v. O S H A, 581 F.2d 493 R M I Co. v. Sec. o f L a b o r, 594 F.2d (6th Cir. 1979); T u rn e r Co. v. Sec. o f L a b o r, 561 F.2d 82 (7th Cir., 1977). Cir., 1978); 21 I n d u s tr ia l U n ion 1974), and A m e r ic a n Cir., 1978). D ep t. v. H o d g so n , 499 F.2d Iro n a n d S te e l In st. v. O S H A , (5th and 467 (D.C. Cir., 577 F.2d 825 (3d “ A m e r ic a n T e x tile M a n u fa c tu r e r s In stitu te , Inc. v. M a rsh a ll, 48 U.S.L.W. 2311 (D.C. Cir., Oct. 24, 1979), review granted, 49 U.S.L.W. 3208 (U.S., Oct. 7, 1980), see M o n th ly L a b o r R ev ie w , December 1980, p. 67. For a more detailed discussion, see Berger and Riskin, “Econom ic and Technological Feasibility in Regulating Toxic Substances Under the Occupational Safety and Health Act,” 7 Ecology L.Q. 285 (1978). U n iv e rs ity o f C a lifo r n ia R e g e n ts v. B a k k e , M o n th ly L a b o r R ev ie w , August 1978, p. 46. 438 U.S. 265 1978), see 4 S te e lw o r k e r s v. M o n th ly L a b o r R ev ie w , W eber, 443 U.S. 193 (1979), see August 1979, pp. 56-57. 25F u llilo v e v. K lu tz n ic k , 48 U.S.L.W. 4979 (U.S., July 2, 1980), see M o n th ly L a b o r R ev ie w , September 1980, pp. 54—55. " M in n ic k v. C a lifo r n ia D ep t, o f C o rrectio n s, 48 U.S.L.W. 2128 (Cal. Ct. App., 1979), review granted, 48 U.S.L.W. 3855 (U.S., July 2, 1980), see M o n th ly L a b o r R ev ie w , December 1980, pp. 67-68. 27 See, for example, D is tr ic t A tty . S a c r a m e n to C ty. v. S a c r a m e n to C ty. C iv il Serv. C o m m ., 48 U.S.L.W. 2538 (Cal. Sup. Ct., 1980), cert, dismissed, 49 U.S.L.W. 3213 (U.S., Oct. 7, 1980), see M o n th ly L a b o r R ev ie w , December 1980, pp. 67-68; D e tr o it P o lice O fficers A ssn. v. Young, 608 F.2d 671 (6th Cir., 1979); and M a e h re n v. C ity o f S e a ttle , 20 FEP Cases 854 (Wash. Sup. Ct., 1979). 28 See footnote 19. T e a m s te rs v. U n ite d S ta tes, 431 U.S. 324 (1977), see M o n th ly L a b o r R ev ie w , August 1977, pp. 48—4-9. " 'C a lifo rn ia B re w e r s A ssn. v. B ry a n t, 48 U.S.L.W. 4156 (U.S. . . , Feb. 20, 1980), see M o n th ly L a b o r R ev ie w , June 1980, pp. 51-52. " G e n e ra l T ele p h o n e Co. o f th e N o rth w est, Inc. v. E E O C , 48 U.S.L.W. 4513 (U.S., May 12, 1980), see M o n th ly L a b o r R ev ie w , August 1980, pp. 45-46. '2 N e w Y o rk G a slig h t C lu b , Inc. v. C a rey, 48 U.S.L.W. 4645 (U.S., June 9, 1980). " R o a d w a y E x p ress, Inc. v. P iper, 48 U.S.L.W. 4836 (U.S,, June 23, 1980). 44 29 U.S.C. Sec. 1927. " M o h a sc o C orp. v. S ilver, 48 U.S.L.W. 4851 (U.S., June 23, 1980). '6 48 U.S.L.W. 4859 (U.S., June 25, 1980). '7 M a h e r v. G agne, 48 U.S.L.W. 4891 (U.S., June 25, 1980). 21 MONTHLY LABOR REVIEW April 1981 • Labor and the Supreme Court, 1979-80 Y o rk C ity , 436 U.S. 658 1978, p. 53. 48 U.S.L.W. 4389 (U.S., Apr. '* M o n e ll v. D ep t, o f S o c ia l S erv., N e w M o n th ly L a b o r R e v ie w , October (1978), see O w en v. C ity o f I n d e p e n d e n c e , M o ., 16, 1980). 40 B r a n d v. F in k el, 48 U.S.L.W. 4331 (U.S., M o n th ly L a b o r R ev ie w , August 1980, pp. 44-45. 41 427 U.S. 347 (1976), see pp. 46-47. Mar. 31, 1980), see M o n th ly L a b o r R ev ie w , October 1976, 4‘ Robert M. Kaus, “Zbig for Life: The Way the Supreme Court is Going, That’s What We Could be Stuck With,” T h e W a sh in g to n M o n th ly , June 1980, pp. 25-32. 41 See T. R. Reid, “GOP Loyalist’s Job Victory May Impede Housecleaning,” T h e W a sh in g to n Post, Dec. 3, 1980, p. 12. 44 N L R B v. Y esh iva U niv., 48 U.S.L.W. 4175 (U.S., Feb. 20, 1980), see M o n th ly L a b o r R ev ie w , April 1980, pp. 57-58. 45 N L R B v. T e x tro n , 416 U.S. 267 (1974). 46 48 U.S.L.W. 4765 (U.S., June 20, 1980), see view, November 1980, pp. 46-47. M o n th ly L a b o r R e 47 See N L R B v. E n te rp r is e A ssn, o f P ip efitte rs, 429 U.S. 507 (1977), establishing the so-called “right to control” test for work preservation agreements; see M o n th ly L a b o r R ev ie w , June 1977, pp. 57-58. 48 See footnote 27 of Justice Marshall’s opinion, 48 U.S.L.W. 4771. 47 N a tio n a l W o o d w o r k M a n u fa c tu r e r s A ssn . v. N L R B , 386 U.S. 612 (1967); N L R B v. E n te rp r is e A ssn, o f P ip efitte rs, 429 U.S. 507 (1977), see M o n th ly L a b o r R ev ie w , June 1977, pp. 57-58. ' N L R B v. R e t a il S to r e E m p lo y ee s , Local 1001, 48 U.S.L.W. 4796 (U.S., June 20, 1980), see M o n th ly L a b o r R e v ie w , November 1980, pp. 47-48. MN L R B v. F ru it P a c k e rs ( T ree F ru its), 377 U.S. 58 (1964), see M o n th ly L a b o r R e v ie w , June 1964, pp. 687-88. 52 C a r e y v. B ro w n , 48 U.S.L.W. 4756 (U.S., June 20, 1980). 53 C a rb o n F u e l Co. v. U n ite d M in e W o rk e rs o f A m e ric a , 48 U.S.L.W. 4059 (U.S., Dec. 10, 1979). For a more detailed discussion and cita tions of lower court decisions, see M o n th ly L a b o r R ev ie w , March 1980, p. 51. W en g ler v. D ru g g ists M u tu a l Ins. Co., 48 U.S.L.W. 4459 (U.S., Apr. 22, 1980), see M o n th ly L a b o r R ev ie w , August 1980, p. 45. 22 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 55 See W ein b e r g e r v. W isen field , 420 U.S. 636 (1975); and C a lifa n o v. G o ld fa r b , 430 U.S. 199 (1977), see M o n th ly L a b o r R ev ie w , May 1977, pp. 51-52. 56 T h o m a s v. W a sh in g to n G a slig h t C o., 48 U.S.L.W. 4930 (U.S., June 27, 1980). '7M a g n o lia P e tr o le u m Co. v. H u n t, 320 U.S. 430 (1943). 58 I n d u s tr ia l C o m m is sio n o f W isco n sin v. M c C a r tin , 330 U.S. 62 (1947). ” P. C. P feiffe r C o., Inc. v. F ord, 48 U.S.L.W. 4018 (U.S., Nov. 27, 1979) , see M o n th ly L a b o r R ev ie w , March 1980, pp. 51-52. 60 S u n S h ip, Inc. v. C o m m o n w e a lth o f P e n n sy lv a n ia , 48 U.S.L.W. 4826 (U.S., June 23, 1980). 1,1 N o r f o lk a n d W estern R a ilw a y Co. v. L ie p e lt, 48 U.S.L.W. 4132 (U.S., Feb. 19, 1980), see M o n th ly L a b o r R ev ie w , June 1980, p. 52. 62 N a c h m a n C orp. v. P en sio n B e n e f it G u a r a n ty C o rp ., 48 U.S.L.W. 4524 (U.S., May 12, 1980), see M o n th ly L a b o r R ev ie w , September 1980, p. 56. 63 R. Wayne Estes, from a paper presented at the annual meeting of the American Bar Association’s Section on Labor and Employment Law, Honolulu, Hawaii, August 4, 1980, 155 D aily Lab . R ep. 1980, D -l. 84A c c a r d i v. P e n n sy lv a n ia R . C o., 383 U.S. 225 (1966), see M o n th ly L a b o r R ev ie w , April 1966, pp. 417-18. 85 A la b a m a P o w e r Co. v. D a vis, 431 U.S. 581 (1977), see M o n th ly L a b o r R ev ie w , October 1977, p. 71. 88 F o ste r v. D r a v o C orp., 420 U.S. 92 (1975), see M o n th ly L a b o r R e view, May 1975, p. 65. 67 C o ffy v. R e p u b lic S te e l C orp., 48 U.S.L.W. 4683 (U.S., June 10, 1980) , see M o n th ly L a b o r R ev ie w , November 1980, p. 48. 68 431 U.S. 581 (1977). 6fl 48 U.S.L.W. 419 (U.S., Feb. 26, 1980), see M o n th ly L a b o r R ev ie w , June 1980, p. 53. 70 M a r s h a ll v. J errico , In c., 48 U.S.L.W. 4485 (U.S., Apr. 28, 1980), see M o n th ly L a b o r R ev ie w , June 1980, pp. 52-53. 71 See T u rn ey v. O hio, 273 U.S. 510 (1927); and W a r d v. V illa g e o f M o n ro e v ille , 409 U.S. 57 (1972). 72 B o a r d o f E d ., C ity o f N e w Y o rk v. H a rris, 48 U.S.L.W. 4035 (U.S., Nov. 28, 1979), see M o n th ly L a b o r R ev ie w , March 1980, p. 52. The negative income tax: would it discourage work? Advocates of the negative income tax often contend that such a program would provide stronger work incentives than conventional welfare benefits; evidence from recent tests indicates that this assumption may not be well-founded R o b e r t A . M o f f it t Would government cash transfer payments to the poor, in the form of a negative income tax, discourage work effort among recipients? The strongest evidence for the existence of such a disincentive comes from four income maintenance experiments, each of which tested the ef fects of the negative income tax on samples of the Na tion’s low-income population. The findings from the experiments have been released in uneven spurts, as they have become available. This article summarizes the results of all four experiments, shows what we have learned from them, and discusses their limitations in providing correct estimates of work disincentive effects.1 The experiments were conducted over a number of years in selected “test bore” sites across the country: New Jersey and Pennsylvania (1968-72); rural areas of North Carolina and Iowa (1970-72); Seattle and Den ver (1970-78); and Gary, Indiana (1971-74). Three of the tests were limited to specific groups of people; only husband-wife couples were studied in New Jersey and Pennsylvania and in the rural experiment, and only blacks in the Gary test, although the Gary test included both couples and families headed by women. All races and family types were included in the Seattle-Denver study. The sample sizes for the experiments were: 1,300 in New Jersey and Pennsylvania; 800 in the rural tests; 4,800 in Seattle-Denver; and 1,800 in Gary. The first exRobert A. M offitt is assistant professor o f economics at Rutgers Col lege, New Brunswick, N.J. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis periment was conducted in the New Jersey-Pennsylvania area because of its high density of urban poor, because it initially had no Aid to Families with Depen dent Children Unemployed Parent Program for hus band-wife couples, and because area government officials were very receptive. The rural experiment was designed to study a different group of the population, and thus focused on two States with different types of low-income populations and agricultural bases. Seattle and Denver were chosen to represent the West, and in the case of Denver, to study a Chicano subpopulation. Finally, Gary was selected because its population per mitted concentration on black female family heads in the Aid to Families with Dependent Children Program, and because of receptive local officials. However, the experiments were alike in the most im portant respect—each attempted to test the negative in come tax using classical experimental methods. A sample of the low-income population was selected in each area, and families were assigned to either an “ex perimental” group or a “control” group. The experi mental group received negative income tax benefits, the control group did not, and the effect of the experiment was measured as the difference in work effort between the two groups. The experiments also varied the gener osity of benefits to the experimental groups in order to measure the effect of this factor on work effort. Like all pure negative income tax schemes, the plans provided a positive benefit to families with no earnings at all, whether the head or any other family member 23 MONTHLY LABOR REVIEW April 1981 • The Negative Income Tax was “voluntarily” or “involuntarily” unemployed; there was no work requirement in any of the experiments. However, to provide work incentives, benefits were not reduced by the full amount of any earnings that the family did receive. That is, the “tax rate” or “benefit-re duction rate” was less than 100 percent. The algebraic statement of the benefit formula is: with the levels of the guarantee and the benefit-reduc tion rate: the higher each of them, the greater the work disincentive.2 This expectation was held most firmly for married couples, to whom the existing welfare system provides benefits in only a few States. For female heads of families, who are already eligible for conventional welfare benefits, there was no prior expectation of a net change in work effort. In fact, the negative income tax was originally proposed in the 1960’s as a program to increase work incentives relative to the existing welfare system, which at that time had fairly high benefit-reduc tion rates that may have discouraged work. B = G - tY, where B is the benefit paid to the family, G is the “guarantee level” — that is, the amount paid to a family with no other income—Y is the family’s income level, and t is the benefit-reduction rate. As is apparent from the benefit formula, an extra dol lar of income, Y, reduces the family’s benefit by t dol lars, where t is some fraction between 0 and 1. Therefore, because an extra dollar of earnings lowers the benefit by only t dollars, total income does indeed increase— by 1—t dollars. The experiment varied levels of the guarantee (G) and reduction rate (t) given to dif ferent families in the experimental group. On average, however, a tax rate of .50 and a guarantee level about equal to the poverty line ($6,191 per year in 1977 for a family of four) were offered. The guarantee level in all cases was higher for larger families. The economists conducting the experiments expected that the results would show some negative effect on work effort; the important question was what the mag nitude of the reduction would be. Moreover, they be lieved that the size of the work disincentive would vary Table 1. Findings confirm expectations Table 1 shows the difference in hours of work per week between the experimental and control groups, bro ken down for husbands, wives, and female heads of families in each of the test areas. Work effort is shown as hours of work per week, but most of the studies ac tually measured work hours over longer periods. For analytical purposes, hours have been standardized here to a weekly basis. Data presented in the table are unequivocal evidence that hours of work are reduced by the negative income tax. The disincentive effects for husbands range from about 1 percent to 8 percent. For wives, they vary much more—from almost zero to 55 percent (although the latter figure may be a statistical anomaly). Disincen tives of 12 to 28 percent were reported for female fami ly heads in the only two experiments for which esti- Average differences in weekly hours between control and experimental groups in four test areas Husbands A r e a a n d s o u r c e o f e s t im a t e W iv e s F e m a le h e a d s o f fa m ilie s A b s o lu t e P e rc e n ta g e A b s o lu t e P e rc e n ta g e A b s o lu t e P e rc e n ta g e d iffe r e n c e d iffe r e n c e d iffe r e n c e d iffe r e n c e d iffe r e n c e d iffe r e n c e U.S. Department of Health, Education and Welfare:1 W h ite .................................................................................................. Black .................................................................................................. Spanish-speaking .............................................................................. -1 .9 0.7 -0.2 5.6 2.3 0.7 -1.4 0.1 -1 .9 30.6 2.2 55.4 — — — — Hall:2 White .................................................................................................. 3 -2.4 7.1 3-1.5 32.8 — - 3 -2 .9 2.1 -0 .5 8.0 5.6 1.2 3 -5.2 -2.2 -1.2 31.3 21.5 20.3 — — — — 3 -1.8 5.3 3 -2.1 14.6 3 -2 .6 11.9 -1 .6 4.7 0.2 3.7 3 -2 .0 27.8 N e w J e r s e y - P e n n s y lv a n ia R u ra l ( n o n f a r m ) U.S. Department of Health, Education and Welfare and Bawden:4 North Carolina blacks ....................................................................... North Carolina whites ....................................................................... Iowa whites......................................................................................... S e a t t le - D e n v e r Keeley and others6 .................................................................................. G a ry Moffitt6 ...................................................................................................... 1See Sum m ary R eport: New Jersey G raduated W ork Incentive E xperim ent (U.S. Department of Health, Education and Welfare, 1973). 2 See Robert Hall, “ Effects of the Experimental Negative Income Tax on Labor Supply,” in Joseph A. Pechman and P. Michael Tlmpane, eds., W ork Incentives and Incom e G uarantees (The Brookings Institution, 1975). 3 Significant at 10-percent level (15 percent for New Jersey Department of Health, Education and Welfare estimate). 4 See Sum m ary R eport: R u ral Incom e M aintenance Experim ent (U.S. Department of Health, Education and Welfare, 1976). 24 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5 See Michael Keeley, Philip Robins, Robert Spiegelman, and Richard West, “ The Labor Sup ply Effects and Costs of Alternative Negative Income Tax Programs,” Journal o f Human Re sources, Winter 1978, pp. 3-36. 6 See Robert A. Moffitt, “ The Labor Supply Response In the Gary Income Maintenance Experiment,” Journal o f Hum an Resources, Fall 1979, pp. 477-87. Note: Hours differences are regression-adjusted for differences between experimental and control group members in years of education, age, and similar variables. Dashes Indicate data not available. mates are available, Gary and Seattle-Denver. These represent the differences in hours worked between the ex perimental group, which received negative income tax payments, and a control group which received Aid to Families with Dependent Children; thus, the results indi cate that the negative income tax programs tested also re duced work effort relative to the existing welfare system. Although the experiments clearly found a work disincentive effect, the ranges of response are rather dis concerting. Moreover, the effects for different demo graphic groups follow no clear pattern. Interracial variations, for example, appear to be only a result of random statistical error. In fact, in the Seattle-Denver experiment, no statistically significant differences be tween the races were found. (The Seattle-Denver data in table 1 are averages across all racial groups.) One interesting finding that has emerged from the ex periments relates to the form which work reduction has taken for men. There are strong indications that reduc tions in total hours of work most often reflect reduc tions in likelihood of being employed at all, rather than marginal reductions in the hours of those who remain employed. That is, the reduction in total work hours shows up as a decline in the employment rate of the ex perimental sample relative to that of the control sample. The policy implications of this finding are ambiguous. On the one hand, withdrawal from the labor force is a major change in work effort, one that society is not likely to accept. On the other hand, this also implies that the total reduction in work hours stems from a rather large response by a small number of men. There fore, the negative income tax does not appear to have a pervasive effect on the work ethic of the low-income male population; in fact most of the men do not re spond at all. This phenomenon is undoubtedly related to the diffi culty in reducing hours of work while remaining employed. Work hours in most jobs held by prime-age men are institutionally fixed and difficult to change. This is less true of the poor than of the population as a whole, low-wage workers being more likely to hold part-time or unstable jobs. But even these workers may be able to reduce work effort mostly by not working at all. However, one way in which workers may be able to adjust hours marginally is by reducing overtime work. There has not been a great deal of attention paid to this possibility, except in the New Jersey experiment, where it did indeed appear that part of the response resulted from a reduction in overtime. A decrease in the employment rate of the low-income population can occur in several ways. It may take the form of lengthening of time between jobs, longer peri ods of unpaid vacation and holidays, or permanent withdrawal from employment. Results from some of the experiments indicate that the first of these responses—a https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis lengthening of time between jobs, often corresponding to an increase in the length of unemployment spells— was the most common. If used for more thorough job search, such unemployment spells may result in higher wages when employment is finally secured. For young workers, some data have also shown an increase in school attendance, which may contribute to the individ ual’s human capital and also ultimately increase wages. Both of these uses of nonwork time are probably more acceptable than increases in pure leisure. However, al though this investment should result in greater future earnings potential, no earnings increases were apparent in data from the experimental period. The lengthening in unemployment spells took an in teresting form in the Gary test, where heavy layoffs in the steel industry early in the experiment drove up local unemployment rates. The data showed that both the ex perimental and control groups increased their work ef fort over the period of the experiment as unemployment rates in the area dropped, but that the growth in the employment rate of the control group was greater than that in the experimental group. Consequently, this “rel ative employment reduction” was taken as evidence that the negative income tax resulted in a slower return to work among members of the experimental group, prob ably because they were using the payments as a form of unemployment insurance. Members of the control group, with much less generous conventional unemploy ment benefits available were probably forced by eco nomic distress to return to work sooner. As previously mentioned, the experiments also tested negative income tax plans with various benefit-reduction rates and guarantees. The results in table 1 should be thought of as the responses to plans with a benefit-re duction rate of about .50 and a guarantee level equal to the poverty line— roughly the average across all experi ments. Most of the plans currently before Congress pro pose somewhat lower guarantee levels (equal to 65 percent of the poverty line), which would suggest a smaller work disincentive. Therefore, measures of the work effort resulting from various combinations of ben efit-reduction rates and guarantees are needed to predict the responses to different programs. The following tabulation shows the average effects of selected guarantee and benefit reduction rate adjust ments: Change in negative income tax variable An increase of $20 per week (1977 dollars) in the guarantee level . . . An increase of 10 percent in the benefit-reduction rate ............................ Change in hours for— Female family Husbands Wives heads -0 .4 -0 .8 -1 .8 -0 .3 -1 .2 + 0.5 25 MONTHLY LABOR REVIEW April 1981 • The Negative Income Tax As indicated, increases in the guarantee level decrease hours of work.3 The effects are largest for female family heads, who appear to be very responsive to the guaran tee level, and smallest for husbands. Both husbands and wives also work less, the higher the benefit-reduction rate, with wives responding more than husbands. For female heads, the experimental findings show unexpect edly that increases in the benefit-reduction rate promote work effort. The explanation generally given for this re sult is that, in economic terms, the “income effect” of the change dominates the “substitution effect”; the re duction in take-home pay caused by the higher benefitreduction rate strongly induces these women to work more in order to make up for the loss of income. How ever, the absolute size of this increase in work hours is rather small and is overwhelmed by the large negative effect of an increase in the guarantee level. In fact, the results show that, in general, experimental group mem bers are somewhat more sensitive to changes in the guarantee than to changes in the benefit-reduction rate. These findings do indeed imply that the response to a cash transfer program with a guarantee set at 65 per cent of the poverty line would be smaller than shown in the experiments, which set it at 100 percent. At the lower guarantee level, the percentage reductions in work effort discussed in table 1 would be about 2 percent lower for husbands, 6 percent lower for wives, and 11 percent lower for female family heads.4 Nevertheless, work disincentives would remain. Limitations of the experiments Several limitations of the experiments should be taken into account when assessing the results. The most im portant qualification is that the experiments by and large lasted only 3 years, a fact which was known be forehand by the families who agreed to enroll. Partici pants consequently may have behaved differently than they would in a permanent national program, although it is not obvious whether they would respond more or less under non-test conditions. As Charles Metcalf has shown, there is a tendency for individuals in a short-run experiment to overrespond (reduce work effort more than they would in a permanent program) in order to take advantage of the higher benefits temporarily avail able from non-work.5 This runs contrary to the natural tendency for persons to underrespond simply because a permanent guarantee of income has more impact than a temporary guarantee. On a priori grounds, there is no way to tell which tendency dominates. Fortunately, some families in the Seattle-Denver ex periment were enrolled for 5 years (and were told so be forehand), to ascertain whether the duration of the experiment makes a difference. The preliminary results indicate that these individuals responded substantially more than those enrolled for 3 years, suggesting that 26 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis the underresponse tendency dominates in test situations. Interestingly, there is also some evidence that this differ ence was largely due to the rather high guarantee levels offered in Seattle-Denver, and that a national negative income tax with a guarantee closer to 65 percent of the poverty line would have permanent effects closer to those discernible among the 3-year test families.6 More research should be forthcoming on this topic. Another limitation of the experiments is that they yield very little information on the welfare participation rate one might expect from a national negative income tax. Participation rates in existing welfare programs vary substantially (about 20 percent in the Aid to Fam ilies with Dependent Children Unemployed Parent Pro gram, 50 percent in the Food Stamp Program, and 90 percent in the Aid to Families with Dependent Children Program), and it is likely that a national negative in come tax would not have a 100-percent participation rate. However, the experiments rarely made any formal provision for nonparticipation; families were automati cally sent a payment by mail if they reported their in come every month— which they were required to do in order to take part in the experiment. Some families left the experiment for this reason, and others undoubtedly refused to participate in the first place because they did not want to be welfare recipients. Therefore, the experi ments do not provide much information on the poten tial nationwide participation rate of eligibles. A final problem with the experiments relates to the underreporting of income by the experimental and con trol groups. In the Gary experiment, there is some evi dence that the female family heads in the experimental group underreported income substantially more than those in the control group, and that the reduction in work effort indicated by the data was partly spurious.7 Rather than the 28-percent response shown in table 1, the evidence suggests that the true response was on the order of 9 percent. Such effects were not significant, however, for husbands, and wives showed no response in any case. A new study just completed in Seattle and Denver shows that the results of the original experiment in those areas were similarly affected.8 These findings have implications not only for the estimated work disin centives of transfer programs, with which this article is concerned, but also for the administrative aspects of program cost and quality control. Despite their limitations, the income maintenance ex periments have contributed a great deal to our knowl edge of the work disincentives of pure cash transfer programs. We now have a much better idea of what the magnitudes of these disincentives would be if a national program were instituted. And although it has not been discussed in this article, the experiments have also con tributed substantially to our understanding of the prop er administration of such programs and to our effective knowledge of program evaluation techniques. In any case, the test results have provided much support for the current emphasis on work requirements and guaran teed-jobs programs in welfare reform, and have given us a much better ability to quantify the tradeoffs society would encounter among alternative antipoverty plans. □ FOOTNOTES 1More detailed information on the results of the experiments may be found in Robert A. Moffitt and Kenneth C. Kehrer, “The Effect of Tax and Transfer Programs on Labor Supply: The Evidence from the Income Maintenance Experiments,” in Ronald Ehrenberg, ed., R e sea rc h in L a b o r E c o n o m ic s (Greenwich, Conn., JAI Press, 1981). ’ Economic theory actually predicts that the effect of a change in the benefit-reduction rate can be either positive or negative, depending upon whether the “income effect” dominates the “substitution effect.” This is mentioned again below. ' Actually, a range of estimates have been found in the experiments. These numbers are the midpoints of the ranges. Also, caution should be exercised in using these estimates inasmuch as they refer to n e t changes in G and t over what they would be in the absence of a nega tive income tax. For example, a positive level of G already exists for female heads and positive levels of t exist for both female heads and married couples from the positive income tax system. 4 For example, in 1977, the poverty line for a family of four was $119 per week, so 65 percent of it is $77. The difference is therefore $42. The percentages cited here are derived by multiplying the guar antee-effects in table 2 by $42 and dividing by the average hours of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis work for husbands, wives, and female family heads in the experiments (40, 30, and 35 per week, respectively). 5See Charles E. Metcalf, “Making Inferences from Controlled In come Maintenance Experiments,” T h e A m e r ic a n E c o n o m ic R ev ie w , June 1973, pp. 478-83. See Gary Burtless and David Greenberg, “The Limited Duration of Income Maintenance Experiments and Its Implications for Estimat ing Labor Supply Effects of Transfer Programs,” Technical Analysis Paper 15 (U.S. Department of Health, Education and Welfare, 1978). See also Robert A. Moffitt, “Estimating a Simple Life-Cycle Model of Labor Supply: The Evaluation of a Limited Duration n i t Experi ment” (New Brunswick, N.J., Rutgers University, 1979). Mimeo graphed. See David Greenberg, Robert Moffitt, and John Friedmann, “The Effects of Underreporting on Estimation of the Experimental Effects on Work Effort: Evidence from the Gary Income Maintenance Exper iment,” T h e R e v ie w o f E c o n o m ic s a n d S ta tis tic s (forthcoming). See David Greenberg and Harlan Halsey, “Underreporting and Experimental Effects on Work Effort: Evidence from the Seattle and Denver Income Maintenance Experiments” ( s r i International, 1980). Mimeographed. A note on communications The Monthly Labor Review welcomes communications that supple ment, challenge, or expand on research published in its pages. To be considered for publication, communications should be factual and an alytical, not polemical in tone. Communications should be addressed to the Editor-in-Chief, Monthly Labor Review, Bureau of Labor Statis tics, U.S. Department of Labor, Washington, D.C. 20212. 27 Education, on-the-job training, and the black-white earnings gap Black men \s earnings lag those of white men, but their monetary returns for each year of education are as high as those for white men; on-the-job training does not pay off as well for blacks D a n ie l E. T a y l o r More than a decade after the passage of the Economic Opportunity Act and the establishment of the Equal Employment Opportunity Commission, black men con tinued to earn much less than white men. Those who worked full time in 1977 earned a median of $8,714 in wage and salary income, compared with $12,603 earned by white men. Median weekly earnings for black men were $189, or $72 less than those of white men.1 During most of the postwar era, the earnings of black men increased faster than those of white men. Richard Freeman, in a comprehensive study of the economic sta tus of blacks in the 1950’s and 1960’s, demonstrated that during that period, the median wage and salary an nual income of black men increased at a rate of 3.2 per cent per year, compared with a 2.6-percent rate for white men.2 According to Janice Hedges and Earl Mellor, usual weekly earnings of black men who work ed full time increased relative to those of white men from 1967 until the recession of 1974-75, but made lit tle gain subsequently. Black men’s usual weekly earn ings rose from 69 percent of white men’s earnings in 1967 to 77 percent in 1973 and to 78 percent by 1978.3 The interplay of social and economic factors compli cates the analysis of the black-white earnings gap. For example, discrimination historically has played an im portant role in keeping black workers out of occupa tions which provide higher levels of earnings, skills training, and job stability. Racial disparities in educaDaniel E. Taylor is an economist in the Office of Current Employ ment Anaylsis, Bureau of Labor Statistics. 28 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis tion and other spheres that influence the worker’s pro ductivity also affect earnings.4 Both the quantity and quality of education differ for whites and blacks. While the quantity usually is measured by years of school completed, the quality— which is affected by housing patterns, geographic location, and community and fami ly investments in education— is more difficult to mea sure. The human capital approach The notion that workers embody wealth similar to that of capital is not new. Although the concept of hu man capital has been discussed since the 18th century, it received more attention in the 1960’s, spurred by the National Defense Education Act of 1958 and the man power development acts of the early 1960’s. Gary Becker presented a general statement of human capital theory in 1964.5A decade later, Jacob Mincer set down perhaps the most fully developed discussion of the hu man capital theory to date.6 This article uses Mincer’s approach to report earnings differences of black and white men in 1977, by years of educational attainment and work experience. Basically, human capital theory states that job skills obtained by workers through formal schooling and onthe-job training increase productivity. Because workers put aside time for training in which earnings otherwise could be made, they expect a return on this investment analagous to that on invested funds. This return is in the form of increased earnings for higher productivity. Under the human .capital approach, education and work experience along with other variables are used to ex plain differences in earnings among workers.7 Because dollar amounts of investment are difficult to obtain, education is most often measured by years com pleted. Educational achievement affects both weekly earnings (earnings are increased because of the effect of education on productivity) and weeks worked per year (workers with more education tend to work more weeks, recapturing investments in education). Further more, education affects earnings and worktime indirect ly through workers’ occupations. Actual work experience also is difficult to measure and often is approximated by the number of years since leaving school. Black-white earnings ratios In 1977, both median annual and median weekly earnings ratios (black to white) of men with 1 or more years of college exceeded those with 1 to 4 years of high school. (See table 1.) Two exceptions were the groups who had been out of school 11 to 15 years and those out more than 30 years. For them, the weekly earnings ratios were about the same at both educational levels. The earnings differential by race was smallest for col lege-educated men who had been out of school fewer than 6 years and largest for men with some high school education and fewer than 6 years of work experience.8 The black-white weekly earnings ratio exceeded the annual earnings ratio in all groups, except for college Table 1. Median annual and weekly earnings and earnings ratios of male full-time wage and salary workers, by race, educational attainment, and work experience, 1977 E d u c a t io n a n d w o r k e x p e r ie n c e W e e k ly e a r n i n g s 1 A n n u a l e a r n in g s W h it e B la c k R a tio 2 W h it e B la c k R a tio 2 All educational levels3 . . . . Fewer than 6 years experience ............... 6 to 1 0 ............................... 11 to 1 5 ............................. 16 to 2 0 ............................. 21 to 3 0 ............................. 31 or m o re ........................ $12,603 $8,714 69 $261 $189 72 5,489 11,243 14,308 15,513 16,037 14,078 4,084 8,071 9,703 11,225 10,519 8,836 74 72 68 72 66 63 152 233 292 313 321 292 115 174 206 227 218 186 76 75 71 73 68 64 High school — 1 to 4 years Fewer than 6 years experience ............... 6 to 1 0 ............................... 11 to 1 5 ............................. 16 to 2 0 ............................. 21 to 3 0 ............................. 31 or m o re ........................ 11,737 8,268 70 245 181 74 4,702 9,402 12,424 14,452 15,030 14,386 2,893 7,191 8,729 10,125 10,255 10,509 62 76 70 70 68 73 130 202 254 294 304 296 102 155 196 210 214 219 78 77 77 71 70 74 15,126 11,867 78 306 246 80 7,065 13,517 16,778 19,101 20,306 18,575 6,861 10,976 12,382 14,742 15,170 14,547 97 81 74 77 75 78 186 272 331 377 403 382 186 233 251 305 307 281 100 86 76 81 76 74 College — 1 year or more Fewer than 6 years experience ............... 6 to 1 0 ............................... 11 to 1 5 ............................. 16 to 2 0 ............................. 21 to 3 0 ............................. 31 or m o re ........................ 1Weekly earnings are calculated by dividing annual earnings by weeks worked. 2 Ratios are calculated by dividing the earnings of black men in a particular cohort by those ot white men in that cohort. 3 Includes elementary school. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis men with more than 30 years of work experience. This reflects the fact that black men generally work fewer weeks in a year. The difference between the weekly and annual earnings ratios is greatest for men with some high school education and fewer than 6 years of work experience. This large difference is attributed to the high rate of unemployment among black men in this group: in 1977, 18- and 19-year-old black men had an unem ployment rate of 38 percent, nearly 3 times that of their white counterparts. Both the annual and weekly earnings ratios have im proved since 1969. Following are annual and weekly earnings ratios by work experience cohorts in 1977 from this study, which uses the Current Population Survey, and from a study based on a similar universe from the 1970 Census:9 Work experience Fewer than 6 years: A nnual............ W eekly............ 6—10 years: A nnual............ W eekly............ 11-15 years: A nnual............ W eekly............ 16-20 years: A nnual............ W eekly............ . 21-30 years: A nnual............ W eekly............ 31 years or more: A nnual............ W eekly............ 1970 Census (mean) 1977 Current Population Survey (median) (mean) .65 .70 .81 .82 .74 .76 .65 .68 .75 .78 .72 .75 .62 .64 .71 .76 .68 .71 .60 .62 .75 .80 .72 .73 .59 .62 .67 .68 .66 .68 .60 .62 .65 .67 .63 .64 Black men made earnings gains relative to white men in each work experience category, with particularly large gains for black men recently out of school. How ever, the large difference between the median and mean earnings for those with fewer than 6 years of work ex perience suggests that only a portion of young black men benefits from high-paying, stable jobs. By education. Over the last two decades, black and oth er men have made considerable gains in education.10 In 1959, for example, only 21 percent of black and other men 18 years and over and in the labor force had com pleted at least 4 years of high school, compared with 58 percent in 1977. During the same period, the proportion of white men completing 4 years of high school rose from 49 percent to 75 percent. Thus, the educational at tainment of black men continues to lag behind that of white men. Chart 1 contrasts the educational attain ment of white and black men who were full-time wage 29 MONTHLY LABOR REVIEW April 1981 • Education, Training, and Black-White Earnings and salary earners in 1977. Although slightly more than one-third of both white and black men had completed 4 years of high school, the relative proportions are quite different at other levels of schooling. Whereas, 41 per cent of black men had fewer than 4 years of high school, this was true for only 23 percent of the white men; and, while 25 percent of the black men attended college, 38 percent of the white men did so. Black men not only completed fewer grades, they also scored lower on standardized scholastic aptitude tests. Mean scores of high school seniors were signifi cantly lower for blacks. The racial difference between scores remained about the same over the school years reported (1972-73 through 1976-77)." According to a test administrator: . . . a typical result is to find that only 10 to 20 percent of disadvantaged minority groups score above a point that is . . . exceeded by 50 percent of whites . . . . Such differences should come as no surprise to anyone familiar with histori cally unequal education available to blacks as compared with whites, or with corresponding differences in social, economic, and occupational spheres of American life.12 By occupation. In 1977, nearly twice as many black men as white men were employed in low-paying occupations, for example, as service workers or laborers, while smaller proportions were in professional, managerial, and craft occupations. It is estimated that one-fourth of the pay differential13 would be eliminated if black men were represented in major occupational groups in the same proportions as white men. The overall black-white wage gap is also affected by pay differences within major occupational groups. (See table 2.) This is because earnings differ among individu als within the same occupational group. For example, the professional and technical group includes both phy sicians and health technicians, workers with vastly dif ferent earnings. Chart 1. Educational attainment of male full-time wage and salary workers, by race, 1977 Percentage 0-8 years elem entary 30 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1-3 years high school 4 years high school 1-3 years college 4 years college Graduate degree Payoffs for investment in education Earlier studies. Using the human capital approach, Finis Welch calculated rates of monetary return to schooling for white and for black and other men in various job experience groups, using data from the 1960 Census (re porting 1959 earnings data) and the 1967 Survey of Economic Opportunity (reporting 1966 earnings data).14 His results for 1959 showed a higher rate of return for white men than for black men in each experience group. However, over the period, younger black men gained relative to white men with the same years of work expe rience, both in rates of return for schooling and in rela tive earnings. The Vietnam War and a strong economic upswing at the time of the second survey may have in fluenced these results because employment and earnings of black workers rise faster than those of white workers during rapid economic expansions. Leonard Weiss and Jeffrey Williamson used the same Survey of Economic Opportunity data to estimate in come elasticities of education (percentage change in in come resulting from a one percentage point change in education) by race.15 They too noted the importance of full employment conditions as a source of improvement in black-white earnings differentials, but they also noted the possibility of a decline in discrimination as a proba ble cause.16 . . . there may have been an independent shift in the inci dence of discrimination at all education levels as well. The strong effect of secondary and even primary education on black male incomes in 1967 suggests that the improved op portunities in 1967 extended considerably beyond the token employment of a few black executives . . . Other research also demonstrates that blacks made some gains during the 1960’s although results are mixed. For example, Charles Link published income elasticities of education for 1960 and 1970 which showed that black men with 9 to 12 years of education made earnings gains, but his results differed from those of Weiss and Williamson, which showed a large increase at all educational levels. Weiss and Williamson (in an update of their earlier study) concluded that in 1970, “the effect of education on earnings is roughly as strong for blacks as for whites.” 17 James Smith and Finis Welch (using 1960 and 1970 Census data) found that returns for education in 1969 were less for black men who had not attended college than for their white counterparts.18 However, among the college trained with 1 to 5 years of work experience, black men received more handsome returns than white men. More recent research by Smith and Welch used Cur rent Population Survey data for 1968-75 to estimate schooling coefficients, along with other measures of eco nomic equality, for both white and black men.19 They found that the declining proportion of blacks re siding in the South (as well as movements within the South) has been an important factor in the decrease in the racial wage differential, but that education also played an important role in the movement towards wage parity in the late 1960’s and early 1970’s.20 Results of current study. In 1977, the rate of monetary return for education, measured in terms of weekly wages, was as high for black men as that for white men (8.1 percent versus 7.3 percent per year of school). These results appear to be in line with the trends noted earlier. The average rates in 1977 are shown in table 3.21 Rates of return are highest for men most recently out of school and rates generally decline with additional years of work experience. The decline is less among those with some college education. Two effects govern the decline in the rates of return for those with more years of work experience. The “vin tage” effect suggests that workers who have been out of school longer receive lower returns than more recent graduates because of the increasing quality of schooling and the obsolesence of knowledge. The “life cycle” Table 2. Median annual and weekly earnings and earnings ratios of male full-time wage and salary workers, by race and occupation, 1977 N u m b e r (in t h o u s a n d s ) A n n u a l e a r n in g s A v e r a g e w e e k ly e a r n in g s 1 O c c u p a t io n All workers3 ....................................................................... Professional, technical and kindred workers ............... Managers and administrators........................................ Sales workers .............................................................. Clerical workers ............................................................ Craft and kindred w o rkers............................................ Operatives, except transport ........................................ Transport equipment operatives.................................... Nonfarm laborers .......................................................... Service workers5 .......................................................... Farm aborers................................................................ W h it e B la c k 41,677 6,527 5,302 2,264 2,666 9,775 5,565 2,628 3,065 3,131 724 4,180 290 196 ( 4) 303 651 779 389 729 671 104 ' Weekly earnings are calculated by dividing annual earnings by weeks worked. 2 Ratios are calculated by dividing the earnings of black men in a particular cohort by those of white men in that cohort. 3 Includes farm managers and private household workers who are not listed separately https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis W h it e $12,603 16,322 17,774 13,970 12,615 13,093 10,332 11,418 7,081 8,358 4,098 B la c k R a tio 2 W h it e B la c k $8,714 13,247 14,587 69 81 82 $189 271 283 9,363 10,072 9,428 8,721 5,935 6,764 3,875 74 77 91 76 84 81 95 $261 325 348 285 255 275 221 245 178 181 121 n R a tio 2 72 83 81 n 199 214 201 194 138 144 91 78 78 91 79 78 80 75 because of their small sample size. 4 Base is less than 75,000. 5 Excludes private household workers. 31 MONTHLY LABOR REVIEW April 1981 • Education, Training, and Black-White Earnings Table 3. Rates of return on educational attainment for male full-time wage and salary workers, by race, educational attainment, and work experience, 1977 D iffe re n c e W h it e B la c k High school — 1 to 4 years: Fewer than 6 years experience ......... 6 to 1 0 ................................................. 11 to 1 5 ............................................... 16 to 2 0 ............................................... 21 to 30 ............................................... 31 or m o re .......................................... 1.193 1.124 ’ .126 '.112 ’ .073 ’ .041 ’ .207 ’ .111 ’ .084 ’ .133 '.062 1.090 .014 -.013 -.042 .021 -.011 .049 College — 1 year or more: Fewer than 6 years experience ......... 6 to 1 0 ................................................. 11 to 1 5 ............................................... 16 to 2 0 ............................................... 21 to 30 ............................................... 31 years or more ............................... ’ ’ ’ ’ ’ ’ ’ .116 ’ .097 '.144 .081 ’ .074 ’ .089 .018 .023 ’ .076 .003 .002 .028 E d u c a t io n a n d w o r k e x p e r ie n c e .098 .074 .068 .078 .072 .060 1Statistically different from zero at the 95 percent confidence level. N ote: See appendix for the methodology used in deriving rates of return. effect results from the compounding effect of training received at school and that received at work over one’s lifetime. For example, a high school dropout would be less likely to be in a job which provides opportunity for advancement. Smith and Welch suggested that the life cycle effect may be of more importance to those who at tend college, and this may explain why the rates of re turn decline much faster with additional years of work experience for those with only a high school education than for those who have also attended college.22 Within each schooling-experience group, the rates of return for white men and black men are not statistically different, except for college-educated men with 11 to 15 years of work experience. In this category, black men posted a rate of return 8 percentage points higher than that of white men. Three possible explanations for their exceptional performance are that (1) they entered the la bor market during a period of a sharp economic up swing (1962-66), (2) they entered the labor market with at least some college training at a time when em ployers were eagerly looking for minorities to meet Fed eral affirmative action guidelines, and (3) they were the last cohort to enter the labor market before the en trance of the baby-boom cohorts, whose large number has lowered the relative wages of more recent workers.23 Rates of return based on a year of college is less than that for a year of high school. However, these estimates are the average rates; marginal rates imply that for black men with 12 years of schooling and 13 years of work experience, an additional year of education would bring with it an 11-percent rate of return. (See appen dix.) For white men at a comparable level of education and experience, an additional year of school would re sult in about a 9-percent marginal rate of return.24These rates suggest that for white men, the marginal benefit of each additional year of school is less than that for blacks. A rough estimate of the rates of return for on-the-job training suggests that black men do not fare as well as white men. The returns for on-the-job training (mea sured by time since leaving school) are estimated at about 13 percent for white men, and 8 percent for black men.25 However, these estimates should be interpreted with caution. First, on-the-job training is measured by years of work experience; therefore, the training compo nent is overestimated for black men because their jobs usually require less training.26 Second, because black men have higher levels of unemployment than white men, their work experience is also overestimated. D i f f e r e n c e s i n e d u c a t i o n a l attainment and work experience are major forces determining earnings. Black men appear to be gaining as much or more from their fewer years of school relative to white men, but on-thejob training may not pay off as well for blacks. Com pared with white men, the rates of monetary return for education are estimated to be slightly higher for black men but on-the-job training may be considerably less. However, limitations in measuring work experience sug gest caution in drawing any policy interpretations. □ FOOTNOTES Information on annual earnings and educational attainment in 1977 was gathered from questions in the March 1978 supplement to the Current Population Survey ( c p s ). Weekly earnings data were de rived by dividing the annual wage and salary earnings reported for an individual worker by the number of weeks that individual worked during the year. The CPS is conducted each month by the Bureau of the Census for the Bureau of Labor Statistics. A detailed description of the survey appears in C o n c ep ts a n d M e th o d s U se d in L a b o r F orce S ta tis tic s D e r iv e d F ro m th e C u r r e n t P o p u la tio n S u rv e y, Report 463 (Bu reau of Labor Statistics, 1976). The universe for this study included full-time (but not necessarily year round) wage and salary workers, age 16 to 65. : Richard B. Freeman, “Changes in the Labor Market for Black Americans, 1948-72,” B ro o k in g s P a p e rs on E c o n o m ic A c tiv ity , No. 1, 1973, p. 73. Janice N. Hedges and Earl F. Mellor, “Weekly and hourly earn 32 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ings of U.S. workers, 1967-78,” M o n th ly L a b o r R ev ie w , August 1979, pp. 31-41. 4 See, for example, James Gwartney, “Discrimination and Income Differentials,” A m e r ic a n E c o n o m ic R ev ie w , June 1970, pp. 396—408. ' Gary Becker, H u m a n C a p ita l (New York, Columbia University Press, 1964). "Jacob Mincer, S ch o o lin g , E x p erie n c e , a n d E a rn in g s (New York, Columbia University Press, 1974). Additional variables relating to workers’ social, economic, and de mographic status have been used in various specifications of the hu man capital model. These variables include marital status, region, family background, city, size of residence, and veterans status. (See, for example, Randall D. Weiss, “The Effect of Education on the Earnings of Blacks and Whites,” R e v ie w o f E c o n o m ic s a n d S ta tistic s, February 1970, pp. 150-59 or Leonard Weiss and Jeffrey G. Williamson, “Black Education, Earnings, and Inter-regional Migra- tion: Some New Evidence,” A m e r ic a n E c o n o m ic R ev ie w , June 1972, pp. 372-83.) Occupation, a variable which has an important indirect effect upon the distribution of earnings, is often discussed. Another important variable in the model, individual ability, is often excluded from consideration because it is difficult to measure. ”Work experience is estimated in the following manner: the years of schooling plus 5 years representing the preschool years are subtracted from the worker’s age. Although this estimation of work experience is often used in human capital studies, it has serious limitations. Among these are that it assumes men finish school, go immediately to work, and work continuously until retirement. Also, it implicitly assumes that the amount of on-the-job training embodied in a given amount of work experience is the same for all men and that on-the-job training decreases over the life cycle in the same manner for all men. ' James P. Smith and Finis Welch, “Black-White Male Wage Ra tios, 1960-70,” A m e r ic a n E c o n o m ic R ev ie w , June 1977, p. 324. Smith and Welch groups with the shortest and longest work experience ex clude workers with less than 1 year of experience and those with more than 40 years. (The Current Population Survey data include all full time wage and salary workers between age 16 and 65 in 1977, irre spective of length of work experience.) Smith and Welch describe their ratios in the following manner: “Numbers reported are ratios of aver ages, i.e., they are average black earnings or weekly wages relative to appropriate averages for whites. Weekly wages are earnings last year divided by weeks worked last year. The average weekly wage used here is total earnings of all persons divided by total weeks worked, i.e., individual earnings per week are weighted by weeks worked.” Al though their data include workers with less than full-time schedules, this has little effect on the earnings ratios because the black-white ra tio of median usual weekly earnings of part-time workers was .98 in May 1977. " The term “black and other” is used for historical data which are not available for blacks only. In the 1970 Census of Population, 89 percent of the black and other group were black; the remainder in cluded American Indian, Alaskan Natives, Asian and Pacific Island ers. The regression model, however, was designed to measure the earnings differential between blacks and other races. Whites com prised the overwhelming majority of the nonblack group— about 98 percent in 1970. " Statement of Winton H. Manning, senior vice president for Re search and Development, Educational Testing Service, before the Sub committee on the Civil Service. (See P r o fe s sio n a l a n d A d m in is tr a tiv e C a r e e r E x a m in a tio n , U.S. House of Representatives, Subcommittee on the Civil Service of the Committee on Post Office and Civil Service, 96th Cong. 1st sess., May 15, 1979.) Statement of Winton H. Manning, . . , p. 62. P r o fe s sio n a l a n d A d m in is tr a tiv e . Migration: Comment and Some New Evidence,” and Leonard Weiss and Jeffrey G. Williamson, “Black Education, Earnings and Interregional Migration: Even Newer Evidence,” A m e r ic a n E c o n o m ic R ev ie w , March 1975, pp. 236-44. Link’s estimates were based on grouped data from the 1970 Census, while Weiss and Williamson’s es timates were based on individual data from the 1970 census. IKSmith and Welch, “Black-White . . . ,” pp. 323-38. In their anal ysis of earnings ratios, they found that the earnings differential diminished somewhat over the decade yet remained large in 1970; that blacks entering the labor market in the 1960’s, especially in the late 1960’s fared best; and that college educated black men made the greatest improvements. In their regression model, Smith and Welch include government employment and geographic location as explanatory variables as well as school completion and years of work experience which means that their results are not directly comparable with those reported in this article. However, it is useful to note that they found that little change had taken place between 1960 and 1970 in the rates of return for schooling of either black or white men in the elementary and second ary category and that data for both years showed the rate of return for black men to be lower than that for white men in each experience category. For example, white men in the 1 to 5 years of experience category accrued a return of .143, compared with a rate of .097 for black men of this category; in the 31 to 40 years of experience group, the rates of return were .050 and .026. Among those who attended college, the rate grew in the 1960’s, while there was little difference between the races. In 1970, black men in the 1 to 5 years experience category had a rate of return for schooling of .158, compared with a rate of return of .124 for white men of this group. James P. Smith and Finis Welch, “Race Differences in Earnings: A Survey and New Evidence,” in Peter Mieszkowski and Mahlon Straszheim, eds., C u r r e n t Iss u e s in U rb a n E c o n o m ic s (Baltimore, The Johns Hopkins University Press, 1979), pp. 40-73. Smith and Welch, “Race Differences . . . ,” 1Differences were tested for statistical significance using results from the dummy variable analysis. (See appendix.) ""Smith and Welch, “Black-White Male . . . ,” p. 330. For a discussion of the “baby-boom” effect on wages see Richard B. Freeman, “The Effect of Demographic Factors on Age-Earnings Profiles,” T h e J o u r n a l o f H u m a n R eso u rces, Summer, 1979, pp. 289— 318. 4 These calculations were derived in the following manner for whites: ___________ Change in logarithm of weekly earnings_________ Change in education ' This figure was calculated by distributing black men across occu pations in the same proportions as white men, then redistributing these groups across their earnings distribution in the same propor tions. This new income distribution was then used to calculate a re vised median in which 24 percent of the black-white difference was explained. 14 Finis Welch, “Black-White Differences in Returns to Schooling,” A m e r ic a n E c o n o m ic R ev ie w , December 1973, pp. 893-907. Weiss and Williamson, “Black Education, Earnings . . .” Weiss and Williamson, “Black Education, Earnings . . .” 17 Charles R. Link, “Black Education, Earnings, and Interregional . 1414 —.0022 X (12) —.0018 X (13) 5Coefficients of experience and experience squared were used to de rive these estimates. Mincer, S c h o o lin g . . . , p. 91, provides formulas used in the derivation of these estimates. For estimates of the effect experiences on earnings using a more direct measure of on-the-job training, see Greg J. Duncan and Saul Hoffman, “On-the-Job Train ing and Earnings Differences by Race and Sex,” R e v ie w o f E c o n o m ic s a n d S ta tistic s , November 1979, pp. 594-603. “ See Duncan and Hoffman, “On-the-Job Training . . . ,” p. 597, for estimates of the average amount of training by occupation. APPENDIX: Rates of return for education The model used to estimate rates of return for educa tion in the current study is In W = a + b]S + b2t + b312; where: In W is the natural logarithm of average weekly earnings. S is the number of years of schooling completed. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis t is the calculated number of years of work experi ence (Age -S -5). Average weekly earnings (annual earnings divided by weeks worked) is used as the dependent variable of the model because earnings and work time are both depen dent on schooling and experience. An advantage in us33 MONTHLY LABOR REVIEW April 1981 • Education, Training, and Black-White Earnings ing weekly earnings as the dependent variable (as op posed to annual earnings) is that the labor-leisure tradeoff is taken into account, that is, the effect of hu man capital on earnings is separated from its effect on work time. However, involuntary unemployment, which reduces work time beyond that which would be freely chosen, makes this variable less useful, that is, to the extent that black men are involuntarily unemployed more than white men, their rate of return to schooling is overestimated. Because years of schooling measure the quantity of schooling but not its quality and because the black edu cational experience historically has been lower in quali ty than that of whites, the independent variable, years of schooling, overestimates blacks’ educational input. Experience, defined as the time since leaving school, overestimates black men’s work experience as they are more likely to have periods of unemployment than white men. Additionally, the amount of on-the-job training which is embodied within a given amount of work experience may be less for black men. The experi ence squared term takes into account the fact that actu al on-the-job training declines as workers age, which means that additional years of work experience will have less impact on workers’ earnings. To measure the statistical significance of the dif ference between the effect of schooling on the earnings of white and black men (holding experience constant), the model takes the form In W = a + a'Z + b, S + b,'SZ + b2t + b2'tZ + b312 + b /t2Z where Z is a dummy variable designating race (Z = 1 if black, 0 if white). Using this method, it can be said that the rate of return for black men is significantly different from that for white men if the coefficient, b,' is statistically different from zero. (These differences are reported in table 3 of the text.) For a discussion of this estimation technique, see Jan Kmenta, Elements of Econometrics (New York, The Macmillian Co., 1971), pp. 419-22. The regressions were run separately by length of work experience for workers who completed 1 to 4 years of high school and for those completing at least 1 year of college (total figures include those completing only elementary school). By analyzing the data in this 34 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis manner, experience acts as an index of age (that is, suc cessive experience groups can be considered successive age groups). In the context of the human capital model, this indexing marks the vintage of schooling. This is im portant because the difference in the quality of educa tion of blacks and whites has declined over the past several decades. See John D. Owen, School Inequality and the Welfare State (Baltimore, the Johns Hopkins University Press, 1974), pp. 133-^48. Furthermore, schooling’s effect on earnings over the life cycle (succes sive experience groups) may differ by race. A measure of the marginal rate of return can be esti mated by altering the model to include a variable which accounts for the non-linear aspect of an additional year of education with experience. Essentially, the model is expanded to include a term for the square of education and for education by experience. The marginal change in earnings due to a change in education can then be derived by differentiating the estimated equation with respect to education. Estimates of this equation are shown in the following tabulation for the overall sam ple, by race (standard errors in parenthesis): C onstant............................ Education.......................... Education squared ............ Education, by experience . . Experience.......................... Experience squared............ White 3.2 (.05) .1414 (.0069) -.0011 (.0002) -.0018 (.0001) .0904 (.0017) -.0011 (.00002) Black 2.94 (.20) .1374 (.0251) .0001 (.0009) -.0022 (.0003) .0874 (.0063) -.001 (.0001) The extra payoff from an additional year of education (at a given experience and educational level) can be esti mated from the following relationships: For whites—change in logarithm weekly earnings _ change in education (.1414—.0022 education —.0018 experience) For blacks—change in logarithm weekly earnings _ change in education (. 1374 + .0002 education —.0022 experience) J Measuring wage dispersion: pay ranges reflect industry traits Greatest wage dispersion occurs in industries with broad occupational staffing or with much incentive pay; high-paying industries, often heavily unionized, show less variation in earnings and a penchant for single job rates C a r l B. B a r s k y and M a r t in E. P e r s o n i c k Wage rates in an industry can vary a great deal above and below the average wage for that industry. However, in another industry with a similar average wage, the range of pay rates can be small. What causes such dif ferent wage dispersions among industries? Using meas ures of relative dispersion, this analysis shows that in dustry characteristics such as degree of unionization, geographic location, occupational mix, and method of wage payment influence the amount of variation. Recent wage data for a cross-section of manufacturing and mining industries are examined in this article. The Bureau’s Industry Wage Survey program is espe cially suited to analysis of wage dispersion. Individual surveys provide straight-time hourly earnings data for a number of detailed occupations representing an indus try’s wage structure. Information is recorded on each establishment’s location, collective bargaining status, and number of employees, as well as on its major prod uct and production processes. In addition, sex and method of wage payment are recorded for individual workers. Data for 43 manufacturing and six mining industries surveyed during 1973-78 are used in this analysis.1 These narrowly defined industries, although not a prob ability sample of all industries, adequately represent the many kinds of manufacturing and mining activities in the United States. Carl B. Barsky is an economist and Martin E. Personick a project di rector in the Division of Occupational Wage Structures, Bureau of La bor Statistics. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The data reveal substantial differences in the degree of wage dispersion among various industries, apparently governed by two competing groups of factors: (1) companywide bargaining and single job rates create low wage dispersion in industries such as glass containers and cigarettes; and (2) broad occupational staffing pat terns and incentive pay systems tend to produce large wage spreads in industries such as meat products and men’s suits. In general, high-paying industries, often highly unionized, show less variation in individual earn ings than low-paying industries. Differences in pay lev els among establishments are a dominant characteristic of industries with widely dispersed earnings. Employee opportunities for increased pay take dif ferent forms that are related to the degree of industry wage dispersion. Uniformity of wages, as found in many high-paying industries, might discourage movement of workers between firms (that may pay the same rates set by union agreement). However, widely dispersed earn ings, often in low-paying industries, may encourage workers to seek increased earnings through shifts to higher paying firms or to those using incentive pay sys tems. In addition to individual workers, others who make decisions based on wage rate distributions include com panies who set their wage levels at stipulated distances from an industry or area-wide average, market research ers testing the potential demand for new consumer products, and tax analysts estimating revenues from workers at different earnings levels. 35 MONTHLY LABOR REVIEW April 1981 • Measuring Wage Dispersion Analytical technique Before defining the dispersion measures in this analy sis, let us look at a full earnings distribution to find some of its key points. Chart 1 describes the wage dis tribution in basic steel, which corresponds closely to a “bell-shaped” curve; in fact, its mean and median value are exactly the same. Moreover, its first and third quartiles— the points above and below which a fourth of the workers fall— are each about equidistant from the me dian. The standard deviation can be thought of as the average distance (dispersion) of workers’ earnings from the industry’s mean. Typically, about two-thirds of the workers fall within plus or minus one standard devia tion of the mean. In this analysis of wage dispersion, two basic approaches are used: the spread in earnings for the cen tral portion of the industry’s distribution is related to the median value by the index of dispersion; and the variation of all wage rates in the distribution about the mean value is summarized by the coefficient of variation. The index of dispersion is computed by dividing the interquartile range (the difference between the third and first quartiles) by the median (second quartile) and mul tiplying by 100. In the case of basic steel, it is $ 1.46/$8.32 X 100 = 18. Obviously, the distribution of rates at the upper and lower fourth of the array has no Chart 1. Distribution of hourly earnings of production workers in basic iron and steel, February 1978 Percent of workers 20 ir w r iïï i iiii i 18 16 Mean and median 14 12 10 36 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Earnings influence on the index values. Further, the actual wage rates other than the three quartiles do not affect the dis persion index; this measure is determined only by the position of these quartiles, and not the shape of the dis tribution within the band. The median standardizes the index of dispersion, so that a distribution of relatively high rates may be compared with one of low rates. For example, if one industry has quartiles of $4.00, $4.50, and $5.00, and a second has quartiles of $8.00, $8.50, and $9.00, both would have an interquartile range of $1.00. The indexes of dispersion are 22 for the first in dustry and 12 in the second, indicating more relative dispersion in the lower paying industry. The coefficient of variation is computed by dividing the standard deviation by the mean and multiplying by 100. The calculation for basic steel would be $1.25 -h$8.32 X 100 = 15. As with the dispersion index, a cen tral value— the mean—is used to standardize the earn ings dispersion for situations with varying pay levels. Most of the analysis in this article relies on the coefficient of variation as a measure of dispersion. Us ing either the dispersion index or the coefficient of vari ation, however, will generally result in similar con clusions when comparing wage dispersion among in dustries or other economic units.2 (See “technical note” that follows for a comparison of how the two measures may differ.) The primary advantage of the coefficient of variation approach is that total variation in earnings around the mean can be measured and then, broken into two component parts—earnings variations among and within establishments. Ranking wage spreads Two sets of dispersion rates by industry are shown in table 1. Indexes of dispersion were, with few exceptions, higher than coefficients of variation, but both measures yielded similar rankings of industries based on Spear man tests.3 Industries with the least degree of earnings variation included motor vehicle manufacturing, several mining groups, petroleum refining, and cellulosic fibers. The most dispersed earnings were reported in semicon ductors and men’s suit and coat manufacturing. In certain instances, the two dispersion measures were dissimilar in rank or value. The coefficients of vari ation for the women’s hosiery and men’s and boy’s shirts industries, for example, were 21 and 22, respec tively, indicating a moderate amount of dispersion. Their indexes of dispersions were 30 and 31, however— relatively high in comparison with other industries. The dispersion index in effect ignores a certain amount of wage compression brought about by the concentration of workers at the lower end of the array, below the first quartile. Thirteen percent of the women’s hosiery and 24 percent of the shirts industry production workers earned within 5 cents of the applicable Federal mini https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis mum wage when the surveys were last conducted. The median-based dispersion index suggests that these in dustries have as much relative dispersion as, for exam ple, meatpacking—an industry which is not influenced by the minimum wage and which has one of the highest coefficients of variation (29) among those reported. At the other end of the earnings array, the lead and zinc mining industry has some “hidden” dispersion in the upper one-fourth of its earnings distribution. Min ers, primarily paid on an incentive basis, had earnings that were usually scattered throughout that upper por tion. As a result, the industry’s dispersion index value of 18 ranks relatively low (although second highest among the mining segment); but, its coefficient of varia tion (26) is among the upper third of those reported. Rankings of the coefficients of variation were com pared with rankings of such characteristics as industry pay level, unionization, and the use of single-rate pay systems. Based on Spearman rank correlation tests, the degree of dispersion is inversely related to these factors.4 Table 2 portrays the inverse relationship found be tween dispersion and pay levels for 28 industries. Only the meatpacking and motor vehicle parts industries were in the top third of rankings of both industry pay levels and dispersion, and none of the industries fell into the bottom third of both categories. Consistent with the Spearman test, a clustering occurred for indus tries with the highest pay levels and the lowest coeffi cients of variation. Industries with low dispersion rates were, as expected, highly unionized. There were, however, other highly unionized industries with broadly dispersed earn ings— such as men’s suits, leather tanning, and gray iron (except pipe and fittings) foundries. The latter in dustries had substantial proportions of workers under incentive pay plans. Four industries with coefficient^ of variation of 10 or less (underground coal, iron and cop per mining, and petroleum refining), in addition to be ing virtually 100 percent unionized, were marked by almost complete mechanization of production processes and, therefore, a virtual absence of worker control over output. As a result, time rates are paid almost exclus ively in these industries, producing low wage dispersion. Industries with high dispersion rates were invariably those using pay plans other than single-rate systems. Men’s suits, with the second highest coefficient of varia tion, had four-fifths of its production workers covered by union agreements—most of them by a single nation wide contract. Nevertheless, seven-tenths of the workers were paid under individual piecework plans. Further, dispersion is affected by regional differences that have not been eliminated by the nationwide contract that specifies only minimum occupational wage rates. Semiconductors, the most highly dispersed industry, has relatively little unionization (two-fifths) and sub37 MONTHLY LABOR REVIEW April 1981 • Measuring Wage Dispersion Table 1. Wage dispersion statistics for selected industries, 1971 -7 8 C o e f f ic e n t o f Dlv In d u s t r y t it le code S u rv e y d a te M ean w age v a r ia t io n P r o p o r t io n o f in t e r p la n t In d e x o f d is p e r s io n v a r ia t io n 1011 1021 1031 1094 1211 1211 2011 2013 2071 2111 Iron m ining........................................................................... Copper mining .................................................................... Lead and zinc mining ......................................................... Uranium, radium and vanadium m ining............................... Underground coal m in e s..................................................... Surface coal m ines.............................................................. Meatpacking ....................................................................... Prepared meat products ..................................................... Candy and other confectionery products ........................... Cigarettes ........................................................................... July Oct. Oct. Oct. Jan. Jan. Mar. Mar. Aug. May 1977 1977 1977 1977 1976 1976 1974 1974 1975 1976 19,103 20,210 5,277 9,000 94,411 33,979 118,319 46,945 40,286 32,826 $7.10 7.60 6.23 6.89 6.96 6.88 4.64 4.38 3.60 5.71 10 9 26 25 7 19 29 27 28 15 13 10 30 48 22 76 75 78 67 8 16 11 18 27 14 22 32 35 40 21 221,8 222,8 223,8 2251 2252 226 2311 2321 2327 2511 Cotton textiles ..................................................................... Manmade te xtile s................................................................ Wool textiles ....................................................................... Women’s hosiery ................................................................ Hosiery, except women’s ................................................... Textile dyeing and finishing ................................................. Men’s and boys' suits and coats ........................................ Men’s and boys sh irts.......................................................... Men’s and boys separate trousers...................................... Wood household furniture (except upholstered).................. May May May July July June Apr. May May Nov. 1975 1975 1975 1976 1976 1976 1976 1978 1978 1974 152,025 136,437 13,122 23,805 23,913 51,458 64,105 85,442 55,017 122,350 3.08 3.07 3.17 300 3.05 3.82 3.97 3.29 3.46 3.05 17 17 19 21 22 23 32 22 23 27 13 25 48 17 15 47 31 25 27 69 25 25 23 29 32 24 45 31 32 32 2611 2621 2631 2653 281 2823 2824 2851 2911 3079 Pulp m ills .............................................................................. Paper m ills........................................................................... Paperboard mills ................................................................ Corrugated and solid fiber b o x e s ........................................ Industrial chemicals ............................................................ Cellulosic fibers ................................................................ Noncellulosic fibers............................................................ Paints and varnishes.......................................................... Petroleum refining.............................................................. Miscellaneous plastics products........................................ Summer Summer Summer Mar. June Aug. Aug. Nov. Apr. Sept. 1977 1977 1977 1976 1976 1976 1976 1976 1976 1974 8,016 98,860 41,030 61,912 129,952 10,830 51,963 27,647 63,289 236,413 7.23 6.47 6.59 4.65 6.28 4.45 5.18 5.10 7.38 3.24 18 19 22 20 19 12 18 23 10 27 31 51 47 61 77 38 54 75 38 44 29 26 32 25 26 15 24 27 13 38 3111 3141 3221 3229 3251 3253 3255 3259 331 3321 Leather tanning and finishing............................................ Nonrubber footwear .......................................................... Glass containers................................................................ Other pressed or blown glassware ................................. Brick and structural clay tile ............................................ Ceramic wall and floor t ile ................................................. Clay refractories................................................................ Clay sewer p ip e ................................................................ Basic iron and steel .......................................................... Gray iron foundries, except pipe and fittings .................... Mar. Apr. May May Sept. Sept. Sept. Sept. Feb. Nov. 1973 1975 1975 1975 1975 1975 1975 1975 1978 1973 16,677 105,583 62,591 28,328 15,375 5,215 7,585 4,349 345,163 97,371 3.41 2.98 4.63 4.32 3.35 3.41 4.78 4.06 8.32 4.43 25 29 18 22 26 22 23 24 15 25 44 21 8 18 63 56 48 34 35 65 34 40 18 22 36 28 26 24 18 39 3321 3322 3323 336 3441 3711 3714 3674 3731 Gray iron pipe and fittings foundries................................. Malleable iron foundries ................................................... Steel foundries.................................................................. Nonferrous foundries ....................................................... Fabricated structural s te e l................................................. Motor vehicles ................................................................... Motor vehicle parts and accessories ............................... Semiconductors and related devices ............................... Shipbuilding ....................................................................... Nov. Nov. Nov. May Nov. Dec. Apr. Sept. Sept. 1973 1973 1973 1975 1974 1973 1974 1977 1976 17,982 20,087 49,954 54,432 63,741 611,428 149,237 52,956 104,015 3.72 4.68 4.12 4.45 4.55 5.54 4.65 4.52 5.66 20 21 22 26 25 42 38 46 63 75 — 75 62 60 27 26 26 36 35 4 37 62 20 stantial geographic dispersion. In addition, semiconduc tors is a relatively new industry within which companies are still developing internal wage structures. Method of pay, again, seems to be the most important influence on dispersion; here, through the use of rate-range pay plans. Certain groups of related industries prove to be quite different in their dispersion characteristics when exam ined closely. The mining sector, for example, produces some striking contrasts. First, among four metal mining industries, two have low coefficients of variation (iron and copper) and two are quite high (lead-zinc and ura nium). Iron and copper are extracted predominantly from open pit (surface) mines. Accordingly, workers in these industries have less control over production, and are much less likely to receive incentive pay. By con trast, a substantial proportion of workers in lead-zinc and uranium mining—typically underground miners— are paid incentives that lead to dispersed earnings. 38 w o rk e rs https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis — 26 35 18 In coal mining, the situation is reversed: underground coal has somewhat less dispersion than does surface coal mining. Underground coal workers, virtually all unionized, are covered by a master national agreement. In contrast, most surface coal agreements, covering three-fifths of the industry, are companywide, not na tionwide. Thus, almost all of the dispersion in under ground coal mining results from differences within establishments. The coefficient of variation is low in un derground coal because the master agreement sets only a few rates to cover all occupations. In surface coal, however, there are pay differences among establish ments, and these, in fact, more than offset differences within firms. Components of dispersion Table 1 shows the percentage of total wage variation attributable to differences among establishments. The Table 2. Relationship between ranking of coefficients of variation and average hourly earnings, selected industries, 1973-78 C o e f f ic ie n t o f A v e r a g e h o u r ly e a r n i n g s 1 v a r ia t io n in in d u s t r y w a g e s $ 5 .2 8 o r le s s Low (Under 20) $ 5 .3 1 $ 7 .1 4 $ 7 .3 7 o r m o r e Corrugated boxes Glass containers Noncellulosic fibers Paper mills Cigarettes Copper mining Iron mining Petroleum refining Shipbuilding Medium (20 to 23) Hosiery, n.e.c.2 Men’s shirts Men’s trousers Textile dyeing Women’s hosiery Glassware, n.e.c.2 Malleable iron foundries Paperboard mills High (24 or more) Candy Footwear Men’s suits Plastics Fabricated steel Leather tanning Nonferrous foundries Prepared meat Semiconductors Meatpacking Motor vehicle parts 1Gross hourly earnings of production workers in February 1979. 2Not elsewhere classified. interplant proportion of variation was highest (at least 75 percent) for surface coal mining, motor vehicle parts, meat products, industrial chemicals, paints and varnishes, and fabricated structural steel. It was lowest (15 percent or less) for cigarettes, glass containers, cot ton textiles, iron and copper mining, and hosiery (ex cept women’s). The difference between the interplant proportion of variation and 100 percent equals the per cent of wage variation within plants. 47 for paperboard mills, two larger related industries with coefficients of variation and several other charac teristics similar to the pulp industry. The same kind of relationship can be found for the cellulosic (12 plants) and noncellulosic (48 plants) fibers industries, with coef ficients of variation of 12 and 18, and interplant values of 38 and 54, respectively. Few establishments in an industry are not sufficient to produce low interplant variation. The cotton textile industry, with 800 plants, had a much lower interplant value (25) than wool, with 87 firms and an interplant value of 48. Cotton industry wages have little variation among plants, in part, because of geographic concentra tion— nine-tenths of the industry is in the Southeast, four-fifths in North Carolina alone. In contrast, wool industry employment is split about evenly between the Southeast and New England— two regions with quite different pay levels. The four clay products industries had similar coeffi cients of variation but differing interplant values, rang ing from 34 for clay sewer pipe to 63 for brick and clay tile. Clay sewer pipe had more geographic concentration and a higher proportion of incentive workers than the other branches— two factors associated with higher intraplant variation. By contrast, brick and clay tile plants were found in most parts of the country and had Table 3. Relationship between rankings of coefficient of variation and degree of interplant variation in industry wages, 1973-78 In t e r p ia n i v a r ia t io n in in d u s t r y w a g e s Industry patterns. In general, the higher the proportion of interplant variation in an industry, the greater its overall wage dispersion as measured by the coefficient of variation.5Table 3 illustrates this relationship; for ex ample, 10 of the 15 industries grouped as having the highest coefficients of variation were also in the upper third for the proportion of interplant variation. The characteristics of several industries were examined to determine why earnings variation in some primarily stems from differences in pay within rather than among establishments. Low interplant variation was present in industries with one or more of the following dominant features:6 geographic concentration (cigarettes, hosiery, and cotton textiles); companywide bargaining (glass con tainers, iron mining, copper mining, and cigarettes); prevalence of incentive pay (nonrubber footwear and ho siery); and broad range of occupational skills (cigarettes, glass containers, iron mining, and copper mining). In addition, a low interplant value would be expected for an industry with few establishments.7 For example, cigarettes, with 13 plants, ties for the lowest interplant value among industries studied. The pulp industry, comprised of only 19 mills nationwide, has an inter plant value of 31, compared with 51 for paper mills and https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis a s a p e r c e n t o f t o t a l v a r ia t io n C o e f f ic ie n t o f v a r ia t io n in Low M e d iu m H ig h (U n d e r 32 p e rc e n t) ( 3 3 - 5 4 p e rc e n t) (5 6 p e rc e n t o r m o re ) in d u s t r y w a g e s Low (Under 20) Medium (20 to 23) High (24 or more) Cigarettes Copper mining Textiles (except wool) Glass containers Iron mining Pulp mills Underground coal Basic steel Cellulosic fibers Noncellulosic fibers Petroleum refining Wool textiles Paper mills Glassware, n.e.c.1 Hosiery, n.e.c.1 Men’s shirts Men’s trousers Women’s hoisery Gray iron pipe Malleable iron foundries Paperboard mills Refractories Steel foundries Textile dyeing Footwear Lead and zinc mining Men’s suits Clay sewer pipe Leather tanning Plastics Uranium mining Chemicals Shipbuilding Surface coal Ceramic tile Corrugated boxes Paints Brick Candy Fabricated steel Furniture Gray Iron, except pipe Meatpacking Motor vehicle parts Nonferrous foundries Prepared meat Semiconductors 1Not elsewhere classified. 39 MONTHLY LABOR REVIEW April 1981 • Measuring Wage Dispersion relatively fewer incentive workers than the other clay products groups. This geographic dispersion is to be expected because of the relatively high cost of shipping the finished products and the availability of raw materi als (mostly clay) in most areas. Work force differences. Within individual occupations, earnings variations primarily reflected pay differences among establishments, regardless of the interplant vari ation for the overall industry. In the four industries with broad skill ranges and low interplant variation, for example, individual occupations exhibited relatively lit tle earnings variation (coefficients of variation rarely exceeded 10); but, this small variation resulted primarily from interplant pay differences. Exceptions included cer tain incentive-oriented occupations, such as forming-ma chine operators (glass containers) and miners— both exhibiting more wage dispersion within establishments than did most time-rated occupations in these indus tries. Wages in some time-rated jobs in cigarettes also had relatively more variation within plants, in part be cause of the extensive use of rate-range plans. One worker characteristic—sex—is often associated with different wage distributions. Women, for example, are commonly employed in a small number of occupa tions near the low end of the wage structure. As a group, therefore, their dispersion values are typically lower than men’s and more attributable to interplant variation. Combining the distribution of women’s wage rates with that for men typically results in higher pro portions of within plant variation by industry. In fact, there is a statistically significant relationship between the proportion of within plant variation and the female percentage of an industry’s production work force.8 The glass containers industry illustrates how values for dispersion can differ between men and women. Al though glass containers is a high-paying industry (table 2), seven-eighths of its 20,000 women production work ers were employed in three low-paying jobs— final in spectors, selectors, and carton assemblers. Men, in contrast, were spread throughout the industry’s earn ings spectrum. The result is a much lower coefficient of variation for women (6) than for men (19) and, as expected, very different proportions of interplant varia tion— 54 for women and 11 for men. The high propor tion for women, clustered in three occupations, approximates the high values that are typical for most individual occupations. At an occupational level, the proportion of interplant variation as well as dispersion rates and pay levels were fairly similar for men and women in the industry. Few changes from earlier data To examine trend information on dispersion meas ures, observations for industries in table 1 were 40 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis matched, where possible, with earlier data. Of the in dustries compared, indexes of dispersion for 16 indus tries were essentially the same (a difference of 2 percentage points or less) in both survey periods. As shown in the following tabulation, six industries —led by glass containers— recorded declines of 4 per centage points or more in their dispersion indexes and five industries—led by candy products—exhibited in creases of at least that magnitude. Industry, by direction of change Wage dispersion index 1975-78 1970-72 Increases: Candy products..................... Industrial chemicals.............. Nonferrous foundries............ Paperboard m ills................... Paper m ills............................ 33 20 31 28 22 40 26 36 32 26 Decreases: Basic steel ............................ Copper mining ..................... Glass containers ................... Glassware (except containers) Iron mining .......................... Lead and zinc mining............ 24 15 28 28 20 27 18 11 18 22 16 18 No single factor or set of factors consistently explain these changes. However, a decline in the incidence of incentive pay was reported in several instances where dispersion values dropped. In glass containers, for ex ample, “buy-outs” of incentive plans by the largest companies contributed heavily to the decline of incentive workers in the industry from 33 percent in 1970 to 13 percent in 1975. In basic steel, however, lower dispersion rates were accompanied by a sharp in crease in the incidence of incentive workers—from twothirds in 1972 to four-fifths in 1978. In steel, uniform cents-per-hour wage increases more than offset the in creased use of incentive plans— typically group bonuses. Such wage increases compressed its occupa tional pay structure to the extent that the highest basic wage rates for workers exceeded the lowest by about 50 percent in 1978 compared with 80 percent in 1972. In summary, industries vary not only with respect to average earnings but also in the extent to which individ uals’ earnings are dispersed around a central point. Such industry characteristics as highly uniform pay rates and skill requirements are associated with low dis persion rates while broad staffing patterns and incentive pay systems are commonly found where earnings are more dispersed. Despite their high pay levels, high wage industries tend to have relatively little earnings varia tion; the degree of this variation and the relative impor tance of interplant wage differences as a source of dispersion seems to be directly related. Finally, disper sion rates for most industries were essentially the same as those recorded 5 years earlier. □ -— F O O T N O T E S A c k n o w l e d g m e n t : The authors thank William Bailey of the Spe cial Reports Group, Office of Wages and Industrial Relations, BLS, and Stephen Baldwin, formerly of the same office, for their helpful suggestions. ' For an earlier account of wage dispersion by industry, see L. Earl Lewis, “Wage Dispersion in Manufacturing Industries, 1950-55,” M o n th ly L a b o r R ev ie w . July 1956, pp. 780-86. The Spearman rank correlation coefficient was .84 between the co efficient of variation and the index of dispersion. This test compares the ranking of arrays of these two measures. Had they coincided ex actly, the coefficient would be 1.0; if the rankings were reverse images of each other, the coefficient would be — 1.0. Two factors contribute to the index of dispersion exceeding the coefficient of variation: (1) the interquartile range, which covers 50 percent of the workers, is almost always higher than the standard de viation, which includes about one-third of the workers (68 percent typically fall within ± 1 standard deviation of the mean); (2) the mean is generally higher than the median. Hence, the index of disper sion contains a larger numerator and smaller denominator than does the coefficient of variation. 4 The Spearman rank correlation coefficients were —.53 for industry pay level, —.40 for unionization, and —.64 for single-rate pay sys tems— all statistically significant at a 1-percent level. 5The Spearman rank correlation coefficient was .42 between the co efficient of variation and the proportion of interplant variation. 6 In theory, it would be possible to use the analysis of variance technique to isolate the percentage of total within plant variation be cause of differences among occupations (interoccupational) and those due to differences within occupations (intraoccupational). The Bu reau’s wage surveys, however, do not examine all occupations in an industry. Instead, occupations are selected to represent an industry’s wage structure; these occupations may cover between 30 and 80 per cent of the production workers in an industry. Thus, in some cases, 70 percent of the workers are lumped together in a residual category consisting of a broad range of occupations which are not studied sep arately. The Spearman rank correlation coefficient was .48 between the proportion of interplant variation and the number of establishments in an industry. KThe Spearman rank correlation coefficient was .44 between the proportion of within plant variation and the percentage of women in the industry. A Technical Note on Dispersion Calculations Coefficient of variation. The summary measure of rela tive dispersion called the coefficient of variation is de rived from total wage variation by summing the wage variation that results from interplant and intra-plant factors; relating that total to the number of workers to derive the “average dispersion per worker”; and, finally, relating that average, the standard deviation, to the in dustry mean wage. The procedure involves the follow ing series of equations: (1) Interpiani variation = 2(X e —X()2 where Xe is the mean wage in each establishment and X: is the industry mean; (2) Intraplant variation = 2(X w —Xe)2 where Xw is the individual wage rate and Xe is the mean wage in the establishment; the sum of equations (1) and (2) equals the total wage variation; (3) Variance = Total wage variation Number of workers —1 ; (4) Standard Deviation (5) Coefficient of Variation Variance; and Standard deviation Mean Dispersion measures compared. As mentioned earlier, the rankings of industry wage dispersions were similar and highly correlated using either indexes of dispersion or coefficients of variation. In terms of data accessibility, however, the index of dispersion is easier to derive be cause the Bureau publishes quartiles or full distributions of earnings, or both, but not standard deviations in its occupational wage survey reports. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The impact on an industry’s coefficient of variation and index of dispersion could be quite different with a change in the minimum wage. To illustrate, data from the May 1978 men’s and boys’ shirts survey were ad justed to bring all workers paid less than $2.90— the Federal minimum that became effective in January 1979 —to that level; no other wage rates were changed. The effect on dispersion statistics is illustrated below: Actual After Percent Statistic values adjustment change Median ..................... $3.04 $3.04 0 Middle 50 percent . . . $2.70-$3.65 $2.90-$3.65 -21 Index of dispersion . . 31 25 -19 M ean.......................... $3.28 $3.36 2 Standard deviation . . . $ .73 $ .67 -8 Coefficient of variation 22 20 -9 Interplant proportion . 25 23 -7 The much larger decrease in the dispersion index than in the coefficient of variation (19 percent compared with 9 percent) reflects the fact that most of the workers af fected by the adjustment are in the lower 25 percent of earnings array. As can be seen, the median and third quartile are unchanged. The coefficient of variation, however, only drops 9 percent, reflecting an 8-percent decline in the standard deviation and a 2-percent in crease in the mean. In summary, either the index of dispersion or the co efficient of variation, in most instances, can be used to gauge dispersion effectively. The former has the advan tage of being easier to derive; however, the coefficient of variation provides a more refined measurement be cause it takes into account portions of the wage distri bution which are ignored in computing the index of dispersion. 41 Conference Papers The following excerpts are adapted from papers present ed at the Thirty-Third Annual Meeting of the Industrial Relations Research Association, September 1980 in Denver, Colo. Papers prepared for the meetings of the IRRA are excerpted by special permission and may not be reproduced without the express permission of the IRRA, which holds the copyright. The full text of all papers appears in the IRRA publication, Proceedings of the Thirty-Third Annual Meeting, available from IRRA, Social Science Building, Madison, Wis. 53706. The male-female pay gap: need for réévaluation G eorge T. M il k o v ic h A significant re-examination of current wage-setting practices is underway. Perhaps as far reaching as the advent of industrial unions and labor legislation of the 1930’s and 1940’s, this re-examination springs from concern over the magnitude and persistence of the earn ings gap between men and women. This gap is consid ered evidence of continued discrimination in employ ment relationships. At issue in the challenges to current wage-setting practices are the legislative intent of the Equal Pay Act, Title VII, and the Bennett Amendment; the assertion that current wage practices potentially cause and continue wage discrimination; and the debate over alternative policies for reducing the earnings gap. Two basic policy options have emerged to reduce the earnings gap. The first focuses on regulating the distri bution of employment and educational opportunities; the second aims at realigning wage differentials among jobs. While both have the same intended consequences regarding the earnings gap, their strategies differ. During the 1970’s the regulatory agencies’ and the courts’ interpretation and enforcement of Title VII and the Equal Pay Act were consistent with the policy of George T. Milkovich is a professor in the School of Industrial and Labor Relations at Cornell University. His full i r r a paper is entitled “Pay Inequalities and Comparable Worth.” https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis distributing employment and education opportunities. Under this policy, women and minorities, underrepre sented (in some cases excluded) in higher paying jobs within and across occupations and in education and training programs, fill opportunities at rates greater than the rates at which they occur in the supply. To date, the legality of these “affirmative action” programs have been upheld in the court. Coupled with the accelerated sharing of opportunities is the Equal Pay Act, which seeks to ensure that wom en (and minorities, under Title VII) receive pay equal to pay for men doing “substantially similar work.” Thus, reduction in the earnings differentials is sought by the desegregation of jobs and the equality of pay within jobs. The argument underlying the need for realignment is that while it may be true that desegregation of occupa tions and jobs within occupations may eventually re duce the gap between male and female earnings, progress is slow.1Further, proponents maintain that the focus solely on job opportunities and equal pay for equal work overlooks a major source of discrimination. Jobs dominated by women may be valued less because they are “women’s work,” not because of any produc tivity-related attributes of the work performed.2 The persistent male-female earnings differential has been attributed to two factors. First, despite affirmative action programs, women tend to be concentrated in lower paying jobs and in occupations which provide limited potential for advancement. Second, the rise in labor force participation rates of women has resulted in significant proportions of women with lower seniority at or near the lower paying entry level jobs.3 Empirical evidence supports the notion that a large part of the male-female earnings gap may be attributed to overrepresentation of women in lower-paying occupa tions and lower paying jobs rather than from women and men being paid unequally in similar jobs. When male and female earnings are analyzed within occupa tions, the income differentials are less than in the labor force at large.4 Some evidence suggests that within the same occupation, firms employing predominantly wom en tend to pay a lower average wage than those employing predominantly men; however, while the oc cupations are controlled in these studies, specific job content is typically not controlled. Evidence suggests that the more similar the work content, the less the inequality between male and female earnings. Yet the more similar the work content, the greater chances of underrepresentation of women in the higher paid jobs and overrepresentation in lower paid jobs. In sum, pay inequalities for work in similar jobs do not appear to be a major factor in the earnings gap; rather, the distribution of women among occupations and jobs is the issue. From this perspective, the relevant question is why women end up in lower-paying jobs than men. Empirical research suggests a second, equally relevant question. “Rather than asking what causes women to be employed in lower paying jobs than men, let us ask what is it that causes female jobs to pay less than male jobs.”5 It is possible that women may be concentrated in jobs which have lower productivity-related attributes than male-dominated jobs, or it may be that through the overcrowding (through discriminatory practices and/or personal preferences) of women into certain types of work, lower wages can be paid regardless of the value of the work content.6 Comparable worth The principal mechanism suggested to accomplish the restructuring of differentials is to set wages based upon the notion of comparable worth or value. Comparable worth, which focuses on the comparison of jobs across rather than within occupations, has been defined as “jobs that require comparable (not identical) skills, re sponsibility, and effort.”7 Yet in an analysis of the meaning and measurement of comparable worth, Schwab summarizes the present state of knowledge. “At present, however, there is no mechanism for defensibly establishing comparable worth.”8 Under current compensation practices the differential “worth” or “value” of work is established through the interaction of a variety of forces, including market forces, forces attributed to collective bargaining, eco nomic condition and policies of the employer, technolo gy, and norms (including discrimination) found in the workplace. A variety of components, including job analysis, job evaluation, market surveys, and negotia tions, constitute the wage determination process. Comparable worth implies the wage differentials should be based on work content and skills required to perform the work. Consequently, application of the comparable value notion requires the development of a universal taxonomy of job content/skill requirements capable of being applied across all occupations and all jobs within occupations. Without this, comparisons across occupations and across employers to identify comparable jobs would not be feasible. Current wage practices and related research suggest that such a tax onomy may be feasible, although considerable research remains. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis R e g u l a t i o n o f t h e alignment of the wage structure and the allocation of job opportunities is not in conflict. It is clear that elimination of discrimination in the dis tribution of jobs, coupled with equal pay for similar work, will reduce discrimination in earnings. It should be equally clear that the focus on equal job opportuni ties and equal pay for equal work fails to insure that current wage differentials among jobs across occupa tions are nondiscriminatory. The basic position taken in this article is that before employers, unions, regulating agencies and the courts can supervise any realignment of wages for work performed predominantly by women, a mechanism to accomplish it must be designed and tested. Such a mechanism does not currently exist. It should be clear, however, that it may be methodologi cally feasible to develop an approach based on the no tion of comparable worth. The approach, using a taxonomy of universal work components skills required, and an agreed upon wage structure of male jobs, needs to be further examined.9 Finally, it is not at all clear that completely changing the wage determination process based on the notion of equal pay for jobs of comparable worth and skill will in any way influence the earnings gap between men and women. It assumes that jobs in which women are over represented are undervalued in current practice. We simply do not know that women (or minorities) on av erage are overrepresented in undervalued jobs. A more basic point, of course, is that if society desires that the median earnings of women and men be more equal, then we ought to be sure that notions such as compara ble worth will generate that objective. □ --------- F O O T N O T E S ---------P. England, “Assessing Trends in Occupational Sex Segregation, 1900-1976,” in I. Berg, ed., S o c io lo g ic a l P e rsp e c tiv es on L a b o r M a r k e ts (New York, Academic Press, 1981). N. D. Perlman and B. J. Bass, P r e lim in a r y M e m o r a n d u m on P a y E q u a lity : A c h ie v in g E q u a l P a y f o r W o rk o f C o m p a r a b le V a lu e (Albany, N.Y., Center for Women in Government, Graduate School of Public Affairs, 1980). P. England and S. D. McLaughlin, “Sex Segregation of Jobs and Male-Female Income Differentials,” in R. Alverez, K. Lutterman & Associates, ed. D is c r im in a tio n in O rg a n iza tio n , (San Francisco, Jossey-Bass, 1979). U.S. Department of Labor, T h e E a rn in g s G a p B etw e e n W o m en a n d M e n (Washington, D.C., U.S. Government Printing Office, 1979). 4 H. Sanborn, “Pay Differences Between Women and Men,” I n d u s tr ia l a n d L a b o r R e la tio n s R ev ie w , July 1964; V. Fuchs, “Differences in hourly earnings between men and women,” M o n th ly L a b o r R eview , May 1971 pp. 9-15, and “Women’s earnings: recent trends and longrun prospects,” M o n t h l y L a b o r R e v i e w , May 1974, pp. 23-26; and B. G. Malkiel and J. A. Malkiel, ‘‘Male-Female Pay Differentials in pro fessional Employment,” T h e A m e r ic a n E c o n o m i c R e v ie w , 1972. ' England and McLaughlin, “Sex Segregation . . . ,” p. 6. '' M. Stevenson, “Relative Wages and Sex Segregation by Occupa tion,” in C. Lloyd, ed., S e x D is c r im in a tio n a n d th e D ivisio n o f L a b o r (New York, Columbia University Press, 1975); D. J. Treiman and K. Terrell, “Women, Work, and Wages — Trends in the Female Occupa tional Structure Since 1940,” in K. Land and S. Spilerman, eds., S o c ia l I n d ic a to r M o d e ls (New York, Russell Sage, 1975); and J. E. 43 MONTHLY LABOR REVIEW April 1981 • Conference Papers Rosenbaum, “Hierarchical and Individual Effects Earnings,” I n d u s tr i a l R e la tio n s , Winter 1980. Perlman and Bass, P r e lim in a r y M e m o r a n d u m . . . , p. 2. * D. Schwab, “Intra-Organizational Pay Setting and Comparable Worth,” in R. Livernash, ed., C o m p a r a b le W orth (Washington, D.C., Equal Employment Advisory Council, 1980). “An alternative approach to developing a bias-free job evaluation plan, “part-correlation”, in which the effects of sex (race) composition of jobs are partialed out has been suggested. See the N a tio n a l A c a d e m y o f S c ie n c e s D r a f t G u id e lin e s on J o b E v a lu a tio n P la n s (Washington, D.C., Bureau of National Affairs, 1980). What is the occupational mobility of black immigrants? G regory E. D e F r e it a s More immigrants were legally admitted to the United States in the 1970’s than in any previous decade of the last half century. The increased volume of immigration has involved a striking shift in composition as well. Since the elimination of ethnocentric national origins quotas in 1965, non white aliens have become the fastest growing segment of the foreign-born population. The number of West Indians, other than Cubans, entering as permanent resident aliens leapt from 44,500 in the 1950’s to 262,700 in the 1960’s, then rose still faster be tween 1971 and 1977 as another 304,700 arrived.1 Although considerable attention has recently been fo cused on the arrival of over 15,000 Haitian boat people in Miami, the black immigrant population is highly concentrated in the Northeast. One-tenth of all blacks in New York City counted in the 1970 census were for eign born.2Their current share may be far larger, given the hundreds of thousands of legal entrants and an esti mated one-half million or more illegal entrants from the Caribbean in the past decade.3 Yet little economic re search exists on their employment in this country. This article examines the occupational mobility of black immigrants in the United States through compari sons with their pre-migration occupations and with the occupational mobility of native-born blacks. Data and empirical analysis Data for this study were drawn from the 1970 Cen sus of Population, 5 percent questionnaire. Respondents answered questions on country of birth, race, year of immigration, and occupation in 1965 and 1970. The study sample includes black native- and foreign-born men, ages 16 to 64, who were experienced members of Gregory E. DeFreitas is an assistant professor of economics at Bar nard College, Columbia University. His full i r r a paper is entitled “Occupational Mobility Among Black Immigrants.” 44 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis the civilian noninstitutional labor force in 1970 and re ported their occupation that year and in 1965. The sam ple was further limited to residents of New York and New Jersey Standard Metropolitan Statistical Areas; two thirds of all black immigrants are concentrated in this region, almost all in New York City. The 1/1000 census sample was used for analysis of the native born while the 1/100 sample was employed for the foreign born to provide an adequate number of observations for statistical tests. The empirical analysis begins with an examination of the frequency and direction of occupational mobility ex perienced by blacks who immigrated to the United States between 1965 and 1970. For these individuals, the occupation in 1965 was the last occupation in the country of origin. The pre-migration occupational distri bution of these recent entrants reveals that a relatively large proportion had high status occupations at origin. Over 16 percent held jobs in professional, technical, and kindred fields and 24.7 percent were craftsmen. Barely one-third were in lower-level operative, service, farm, and laboring jobs. Entry into the American labor force entails consider able movement between major occupational categories for the foreign born, most of it downward. About 44 percent of black immigrants experienced occupational mobility between 1965 and 1970, compared with 20.6 percent of native-born blacks. But whereas the native born are almost twice as likely to be upwardly rather than downwardly mobile, 27 percent of foreign-born men fell in status while 17.3 percent were upwardly mo bile.4 Calculations of mobility rates by pre-migration occu pation indicate that two-thirds of those in managerial and administrative positions in their homeland changed occupations once in the United States and all of them moved to lower ranking jobs. Men formerly in profes sional and craft occupations were less likely to be mo bile, but the roughly 2 of 5 who were moved downward. The only other group suffering substantial downward mobility were sales workers. The depth of their descent.was relatively modest, with most moving into clerical jobs. Despite the prevalence of downward occupational mobility among the foreign born, their decline is not so steep and prolonged as to put them at an occupational disadvantage relative to native black workers in New York City. A comparison of 1970 occupations indicates that immigrants are far more likely to be in higher level jobs: 9.6 percent are professional and technical workers and 18.7 percent are craftsmen, whereas among indige nous blacks, 7.8 percent are professional and technical workers and 14.7 percent craftsmen. Only one in three immigrants is employed in those occupations ranked be low craftsmen in which over 58 percent of the native born are concentrated.5 Black immigrants and natives alike, however, are much less likely than white men to secure high status jobs. Among native- and foreignborn whites in New York-New Jersey Standard Metro politan Statistical Areas, 19.1 percent were in profes sional occupations and 14.4 percent in managerial occupations in 1970.6 These results are consistent with the hypothesis that adjustment difficulties tend to be especially important for high level occupations. However, because recent im migrants are younger, on average, than native-born blacks, these mobility rates may also reflect the greater mobility common to young age groups. Even with con trols for length of work experience and other variables, men arriving in the country between 1965 and 1970 have 18 percent more downward mobility and those en tering in 1960-64 have 9.8 percent more than native blacks. The native born-foreign born differential is small and insignificant for earlier immigrant cohorts, with no evidence of a subsequent upturn in the occupational lev el of immigrants relative to native workers. Finally, in an analysis restricted to recently arrived foreign-born men, migrants with managerial backgrounds are found to have far greater rates of downward mobility (60.7 percentage points) than those in “blue collar” jobs (the reference category). Smaller but also significant differen tials exist for those in professional or clerical /sales posi tions in the country of origin. These results suggest that black immigrants in New York City experience significant occupational mobility during their first few years after arrival. Downward mo bility is especially severe among those with high level occupational backgrounds in the country of origin. These results are consistent with hypotheses derived from previous research on the adjustment difficulties ex perienced by white immigrants. However, unlike most white immigrants who are able to subsequently recover much of their lost occupational status through upward mobility, foreign-born black professionals, managers, and craftsmen appear less likely to regain their former occupational levels. Despite certain employment advan tages when compared with indigenous blacks, foreignborn blacks are substantially underrepresented in highpay, high-status occupations relative to white males. Further research is needed to determine whether this reflects primarily the fact that many immigrants arrived recently or the fact that racial discrimination is perva sive in employment. □ --------- F O O T N O T E S ---------' A n n u a l R ep o rt, U.S. Department of Justice, Immigration and Nat uralization Service, various years. 1 9 7 0 C en su s o f P o p u la tio n , Vol. I, C h a r a c te r istic s o f th e P o p u la tio n , N e w Y ork, Part 34, Section 2 (Washington, U.S. Bureau of the Cen sus, 1973), table 142. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J. M. Scheuer, “Illegal Immigration — Problems and Prospects,” April 1978, pp. 1-15. C ity A lm a n a c , Matrices cross-classifying occupation in 1970 with 1965 occupa tion, both for the native- and foreign-born subsamples, are available from the author upon request. These results are supported by my recent research comparing black earnings by nationality. See Gregory E. DeFreitas, “The Rela tive Earnings of Black Immigrants: The American Case,” E c o n o m ic R es e a rc h P a p e r Series, Cambridge University, 1980. "Calculations from U.S. Bureau of the Census. Sexual harassment: implications for employer liability D onna E. L e d g e r w o o d and S u e Jo h n s o n - D ie t z Effective March 11, 1980, The Equal Employment Op portunity Commission ( e e o c ) issued new sex discrimi nation guidelines covering sexual harassment on the job.1 These guidelines will be reviewed particularly in context of the recent appellate decision in Miller v. Bank of America,2and possible affirmative measures will be defined which employers may take with respect to these guidelines. The new EEOC guidelines clearly reiterate the recent case law holdings that sexual harassment is sex discrim ination under Title VII of the Civil Rights Act of 1964.3 Section 1604.11(a) of the guidelines defines the term “sexual harassment” as being “unwelcome sexual ad vances, requests for sexual favors and other verbal or physical conduct of a sexual nature . . . .” The defi nition is broad and in fact may represent an expansion of existing case law interpretation of what constitutes an offending activity since the definition extends to envi ronmental conditions of the workplace itself. Included in the EEOC’s legal definition of “employer” are employ ment agencies, joint apprenticeship committees and la bor organizations, as well as other employers under Title VII. Use of the term “individuals” within the defi nition appears to make clear beyond any reasonable doubt that protection against sexual harassment extends to both male and female employees. A definition of sexual harassment The EEOC definition of sexual harassment stated above identifies two types of sexual incidents as the Quid Pro Quo type and the Work Environment type. The guidelines also set out three circumstances under which the definition will be applied. These are: Donna E. Ledgerwood is an assistant professor in the College of Busi ness Administration, North Texas State University. Sue JohnsonDietz is a para legal in Dallas, Texas. Their full i r r a paper is entitled “The EEOC’ s Bold Foray Into Sexual Harrassment: Implications for New Employer Liability.” 45 MONTHLY LABOR REVIEW April 1981 • Conference Papers (1) Where sexual conduct is made a condition of an individu al’s employment (Employment Condition) (2) Where such conduct or condition creates an employment consequence (Employment Consequence) (3) Where such condition creates an offensive working envi ronment or interferes with job performance (Offensive Job Interference) The first circumstance (Employment Condition) de scribes sexual harassment as occurring when . . sub mission to such conduct is made either explicitly or implicitly a term or condition (emphasis added) of an in dividual’s employment . . . This situation is the Quid Pro Quo type of sexual incident and implies an offer to exchange employment opportunity for sexual activity. Such an offer is usually made by a supervisor, or person in a superior position, to some subordinate employee. Although the guidelines do not speak to possible re sponses which may be made by an individual confronted by a Quid Pro Quo incident, there are two possible re sponses to such an incident: compliance or non-compli ance. A compliant response may be of either a consenting nature (a willing positive response in order to gain positive employment consequences), or a noncon senting nature (an unwilling positive response in order to avoid loss or negative employment consequences). Potential employer liability may accrue under either a compliant or a non-compliant response. The second circumstance (Employment Consequence) describes harassment activity or behavior as occurring when “. . . submission to or rejection of such conduct by an individual is used as the basis for employment de cisions affecting such individual . . . .” The guidelines do not clearly state whether the first two circumstances must be read together. For example, is an individual, in order to sustain a claim of harassment, required to en dure unwanted sexual behavior unless/until an adverse employment decision has been made as a result of such conduct? As noted by Gene Renslow., Deputy District Director of the Dallas EEOC,4 the question is probably moot since it appears to be covered in any event by the third circumstance. Under the third circumstance (Offensive Job Interfer ence), the sexual harassment definition is extended be yond the Quid Pro Quo type of sexual incident to include situations where “. . . such conduct has the pur pose or effect of substantially interfering with an indi vidual’s work performance or creating an intimidating, hostile, or offensive working environment.” (In the No vember 10, 1980 guidelines, the term “unreasonably” replaced the term “substantially” which was used in the March 11, 1980 interim guidelines.) This circumstance is described as the Work Environment type of sexual in cident. Since Work Environment harassments are prob ably a more pervasive form of harassment and harder to positively identify,5 the Work Environment type of inci 46 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis dent may create potentially more problems and liability for employers than the Quid Pro Quo type. With re spect to the Work Environment sexual incident, no offer of positive rewards is made; the individual is simply put in the position of either tolerating or resisting unwanted sexual activity (physical and/or verbal) during the course of employment. Regardless of whether a re sponse to such an incident is tolerance or resistance, the harassed individual probably always suffers negative consequences. Analysis of employer liability In addition to subsection (a), defining sexual harass ment and identifying the circumstances under which the definition will be applied, four subsections to section 1604.11 of the EEOC guidelines make explicit reference to employer liability. Subsection (b) of the guidelines states that the totali ty of the circumstances, including the nature of the of fense and the context in which an alleged offense occurs, will be considered in any determination that an activity or behavior constitutes sexual harassment. Each case will turn on its own facts (be determined situationally) in defining a harassment activity. Applying the legal doctrine of respondeat superior (let the principle, here the employer, be held responsi ble), subsection (c) clearly states that the employer will be held responsible for the acts of its agents and super visory employees. Further, this responsibility exists “. . . regardless of whether the specific acts complained of were authorized or even forbidden by the employer and regardless of whether the employer knew or should have known of their occurrence.” With respect to non-supervisory personnel and others outside the agency relationship (possibly co-workers, customers, clients, etc.), subsection (d) invokes employ er liability for harassment in the workplace except where the employer lacked knowledge and could not reasonably be expected to have known of a harassment incident. Further, the employer may rebut liability only where immediate and appropriate corrective action is taken upon discovery of such conduct. Although all ha rassment cases in which legal precedence were set have involved superior-subordinate situations, future litiga tion involving activities of non-supervisory persons can probably be expected. In fact, the recently filed case of Alus v. General Foods, Inc.f in the U.S. District Court for the Western District of Michigan, alleges harass ment activities by plaintiffs male co-workers. The plain tiff in Alus seeks, in addition to losses recoverable under Title VII, five million dollars in compensatory and pu nitive damages for tortious interference with a contract. The implications for liability under subsection (d) may then properly merit a serious concern for employers. And, finally, the guidelines at subsection (e) define a program of prevention stating that employers should take affirmative steps in dealing with the problem. Suggested approaches include . . affirmatively raising the subject, expressing strong disapproval, developing appropriate sanctions, informing employees of their right to raise and how to raise the issue of harassment under Title VII, and developing methods to sensitize all concerned.” Validity of the guidelines The guidelines, at the date of original writing, only had “interim” approval. Comments from interested parties on these interim guidelines were received by the EEOC until June 10, 1980. The EEOC, however, made no significant changes in the finally approved guidelines which became effective November 10, 1980. Although it is the courts which over time will define the judicial va lidity of the guidelines, the Ninth Circuit’s recent Miller decision (cited previously) may already have established validity for at least some of the principles iterated. In Miller, the U.S. Ninth Circuit Court of Appeals ruled (1) that under the legal doctrine of respondeat su perior, employers are responsible for the tortious acts (sexual harassment) of a supervisor even when such acts are forbidden by the employer’s policy, and (2) that the mere existence of a harassment grievance procedure at the employer’s establishment does not create a duty with the grievant to use the procedure, nor can failure to exhaust internal remedies foreclose an individual’s rights under Title VII. Miller cites as authority Alexan der v. Gardner-Denver Co.,7a race discrimination case in which the Supreme Court established that internal grievance procedures may not be used to deny access to Title VII remedies. Under the language of the guidelines and the princi ples of Miller then, it appears that the employer is strictly liable for the acts of its supervisors and may not escape that liability. At the very most, liability may only be rebutted under the guidelines (1) upon a clear showing that immediate and appropriate corrective ef forts were taken to halt activities which the employer ei ther knew of or should have known of and (2) only with respect to non-supervisory (rather than superviso ry) persons within the workplace. The guidelines specify, however, that the context in which an alleged offense occurs will be considered, not in order to determine employer liability, but rather to ascertain whether an activity actually constitutes illegal behavior. Harassment prevention and enforcement of appropriate workplace behaviors then appear to be the best, if not the only, “cures” for employer liability. Consideration, therefore, should be given to develop ment of programs which affirmatively meet the preven tive standards outlined by the guidelines. Specific areas for program consideration include policy statements, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis management and employee training, and communica tion of internal grievance procedures for harassment complaints. □ --------- F O O T N O T E S ---------45 FR 25024. (All quoted material used in this paper which bears no immediate reference is taken from the above source. The e e o c ’ s final regulations on sexual harassment will be codified at Title 29 CFR, Ch. XIV, Part 1604, Sec. 1604.11.) 20 2 M ille r v. B a n k e p d §30086. o f A m e ric a , 600 F.2d 211 (1979), 20 fep Cases 462, W illia m s v. S a x b e , 413 F.Supp. 654, 12 e p d §11130; T o m p k in s v. P u b lic S e r v ic e E le c tr ic & G a s C o., 568 F.2d 1044 (CA-3, 1977), 15 e p d §7954; M ille r v. B a n k o f A m e ric a , 600 F.2d 211 (1979), 20 f e p Cases 462, 20 e p d §30086; B a rn e s v. C osile, 561 F.2d 983 (D.C. Cir. 1977); H e e la n v. J o h n s-M a n v ille C orp., 451 F.Supp. 1382 (1978), 16 e p d §8330, 20 fep Cases 251. 4 Statement by Gene Renslow, Deputy District Director, Equal Em ployment Opportunity Commission, Dallas Area District Office, Dal las, Texas, March 24, 1980. 5 S e x u a l H a r a s s m e n t in th e F e d e r a l G o v e r n m e n t: H e a rin g s B efo re th e S u b c o m m itte e on P o s t O ffice a n d C iv il S ervice, H o u s e o f R e p r e s e n ta tives, 96th Congress, 1st Session, Serial No. 96-57, Washington, 1980. h A lu s v. G e n e r a l Foods, In c., Civil Action No. G 79 699 CA 5. 415 U.S. 36, 49-50, 94 S. Ct. A le x a n d e r v. G a r d n e r -D e n v e r C o., 1011 (1974). Social relations, productivity, and employer discrimination Ba r ba r a R. Ber g m a n n and W il l ia m D a r it y , Jr . The fact that white males have a virtual monopoly of the best jobs and the highest incomes is explained by one school of economists as occurring simply because employers prefer things that way, even though employ ers lose money in enforcing it. A second school con cludes that white male dominance of the best jobs is the most profitable arrangement for employers. This group in effect argues that a fair review of the candidates for all of the good jobs would show that all of the best candidates are white males, so that hiring and promot ing them is both fair and profitable for employers. A third group calls attention to the fact that hiring for a good job is a gamble, and that employers may minimize risk by placing all their bets on white males. All of these points of view are implausibly simple, and are uriilluminating of what we might call the scenes of everyday economic life, in which people perform and interact on the job, in which decisions on hiring and Barbara R. Bergmann is professor of economics at the University of Maryland. William Darity, Jr. is assistant professor of economics at the University of Texas at Austin. Their full i r r a paper is entitled “Social Relations in the Workplace and Employer Discrimination.” 47 MONTHLY LABOR REVIEW April 1981 • Conference Papers promotion are made and wages are set. A set of ideas will be presented here which will em phasize the importance of social relations among people of different race or sex in the workplace, and the con nection between productivity and smooth social rela tions. These ideas suggest that discrimination occurs, and that it is dictated by considerations of profitability in many cases. These considerations account for occupa tional segregation by race and sex, for the relegation of minority people to dead-end jobs and for the lower wages they earn on average. Productivity and social process Our analysis starts from the premise that consider able numbers of black women, black men, and white women have the capacity to perform a wide variety of tasks in entry-level jobs usually reserved for white men, and have the ability, by which we mean the intelligence and the drive, to perform them as well as the white men who customarily get those jobs. We are leaving aside consideration of those tasks for which specialized edu cation or training or experience or strength would be required. We are concerned here with ability to perform the multiplicity of tasks the vast majority of white males’ entry-level jobs require— driving a truck on the highway, serving as police officer, management trainee, painter, or apprentice crafts worker. Our argument does not depend on the assumption that the distribution of abilities is the same or nearly the same in all race-sex groups. We are taking a far more conservative position, namely that the distributions have enough overlap so that the proportion of the best candidates who are white men is not close to 100 percent in many of the situations where the proportion of white men who are hired is 100 percent or close to it. Something excludes the able candidates who are not white men. We would locate that “something,” not in the lack of innate capacities of a high proportion of the excluded group and not, principally, in the indulgence in bigotry or in complicated statistical calculations on the part of employers. We would rather draw attention to the fact that having innate ability is a necessary but not sufficient condition for performing creditably on any job. Workers (including immediate supervisors) af fect each other’s performance, and a person of sufficient innate ability (whether inborn or developed through training) to perform well on a job in a milieu which is cooperative, non-hostile, and facilitating may show low or negative productivity in a hostile milieu. In almost any work establishment, the employees need to interact with each other for there to be any out put at all, and the quality and smoothness of their in teractions will powerfully affect the establishment’s productivity. If there is a group of employees doing the same job, the members of that group will contribute 48 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis more to the productivity of the establishment if they in teract cooperatively—if the experienced workers are willing to teach newcomers the ropes, and if there is an absence of personal tensions resulting from slights, in sults, or attempts to establish dominance. Persons assigned to supervise others will be more effective if they have no personal characteristics which make it dif ficult for some of the assigned subordinates to give re spect and to submit to direction. When they come to the job, American workers bring with them ideas about the status conferred in society by being male and white, as well as ideas about the roles customarily played in the home and in social life gener ally by men and women, by whites and blacks. Obvi ously, these ideas are likely to influence workers’ interactions with fellow workers. Evidence which sociol ogists have collected by systematic observation shows that ideas of sex dominance, for example, have an im portant effect on job behavior. A particularly vivid description of the part that workers’ ideas of sex roles play in relations among workers on the job was provided by Whyte1 in report ing a study of restaurants done in 1947. The investiga tors whom Whyte sent to observe noticed that when a waitress, in the course of her duties, had to interact with a male employee of the restaurant in a way atypi cal of the manner in which females and males interact in ordinary life, there was potential for trouble of a sort which would adversely affect the productivity of the es tablishment. Whenever a woman had to “set in motion” a man— as when a waitress had to get a bartender to make a drink which a customer had given her an order for—there was likely to be resentment on the part of the man. This resentment resulted in behavior which, in some cases, caused a deterioration of the service re ceived by the restaurant’s customers. The waitresses studied by Whyte were in a tradition ally female job for the United States. Studies of women who have been introduced into nontraditional jobs or into situations which simulated conditions in such jobs have demonstrated the problems which arise and, by implication, the threat to productivity which such prob lems pose. Judith Long Laws, who reviewed research on this issue by sociologists and psychologists, says, “. . . the possibility that male co-workers will explicitly and deliberately arouse sex role conflicts by baiting the woman recruit cannot be ruled out. Research on women in non-traditional occupations documents a whole range of harassment and sabotage by male co-workers and sometimes supervisors.”2 The historical reaction of white workers to the plac ing of black workers in jobs which are non-traditional reveals a parallel pattern. Longstanding enmity between black laborers and white-dominated unions is a premier manifestation. Some unions have played a major role in excluding blacks from the workplace.3 David Taylor’s study4 of the Chicago labor market found that there were some jobs for which blacks and whites were both recruited, but employers who recruited blacks paid them less and provided them with no prospects of up ward mobility. Whites may more easily accept the in trusion of black workers when there are evident guarantees that the blacks will not compete with them over the occupational life-cycle. Race/sex territories in a firm If even a very small proportion of whites are in a mood to make trouble for blacks who are moving into non-traditional placements or even if a small proportion of men make trouble for women moving into non-tradi tional placements, this may be enough to cause substan tial unrest in the workplace. Where the person making trouble is a long-term employee, loaded down with valuable experience in the firm, whose loss would be a serious blow to the productivity of the organization, the employer is faced with a serious loss if he insists on re solving the incident in favor of the newcomer. We would conjecture that employees who deal in per sonnel matters for business firms and other establish ments develop or have handed down to them a few simple “axioms” on race and sex, which these days one would not expect to find written down in any manual: (1) People who work in the same job and/or must interact as equals will interact more smoothly if they are all of the same race and sex. (2) If a person is supervised by someone who by race and/or sex has an inferior social status, tensions may arise. (3) If the occupations which constitute the training ground for another occupation are open to people of a race and / or sex whose presence in the latter would create frictions, the pool of able persons eligible for promotion would be reduced. Consider the problem posed for the management of an establishment interested in establishing a staffing pattern which will minimize unit labor cost. The lower wage which blacks and women can be paid will be a factor favoring their hiring and promotion, but the “ax ioms” of interaction developed above will be a factor against their use in most jobs. Even under the assump tion that management knew and believed that good candidates for all the entry-level jobs could be found in both races and both sexes, we would still be likely to observe occupational segregation by sex and race. Management might be expected to try to find as many slots as possible to put black and white women into because of their cheapness, subject to the cost con https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis straints suggested by the “axioms.” Axiom 1 suggests that if any occupation is opened to a particular race/sex group, then all members of that occupation must be of that group. Axiom 2 suggests that the most likely slots for blacks and white women are entry-level positions. Axiom 3 suggests that jobs at all levels must be re served for the group that is to be given the top-echelon jobs so as to provide adequate training opportunities for successors to the present incumbents. Taken togeth er, the “axioms” might exclude all but white males from almost all of the higher paying jobs in many es tablishments, and from a considerable proportion of en try level jobs as well. So far, we have been discussing the effects of behavior by individual male or white workers when attempts are made to increase the territory available to minority groups. There is an additional element which suggests itself— the idea of cohesive same-sex same-race groups occupying and defending “turf,” an idea suggested by Bonacich.5Here, the idea is that there may be concerted efforts to maximize each group’s territory. Employers who may want to hire blacks and women because of their cheapness may find it easier to do so if they carve out for them territory which is least desirable for white men. Thus, employers may purposely structure jobs that are dull, dirty, dangerous, and dead-end so as to have jobs that white men do not covet and do not make trouble over. If employers’ practice of race and sex discrimination is primarily based on productivity considerations deriv ing from social processes in the workplace, the difficulty in eliminating it becomes more comprehensible. Such considerations suggest the desirability of more field re search into what actually happens when women and mi nority men are placed in non-traditional jobs. They also suggest that firms needing to get into compliance with anti-discrimination laws might place more emphasis on educating their own employees as to the forms of raceneutral and sex-neutral behavior the firm requires of them. □ --------- F O O T N O T E S ---------1William Foote Whyte, “The Social Structure of the Restaurant”, (January 1949, pp. 302-10). 2Judith Long Laws, T h e S e c o n d X : S e x R o le a n d S o c ia l R o le (New York, Elsevier, 1979). Julius Jacobson, “Union Conservatism: A Barrier to Racial Equal ity,” in J. Jacobson ed., T h e N e g ro a n d th e A m e r ic a n L a b o r M o v e m e n t (Garden City, Anchor Books, 1968). 4 David P. Taylor, “Discrimination and Occupational Wage Differences in the Market for Unskilled Labor,” I n d u s tr ia l a n d L a b o r R e la tio n s R ev ie w , April 1968. 5Edna Bonacich, “A Theory of Ethnic Antagonism: The Split La bor Market,” A m e r ic a n S o c io lo g ic a l R ev ie w , October 1972. A m e r ic a n J o u r n a l o f S o c io lo g y 49 Communications Estimating the demographic mix of the available labor force J oseph L. G astwirth Statistical arguments have played an important role in establishing prima facie cases of discrimination based on race or sex. The courts have generally established that a disproportionate racial impact in hiring can be demon strated with one of two statistical methods:' comparing the proportion of minority applicants who are hired to the corresponding proportion of majority applicants (applicant flow method); or comparing the percentage of minorities currently employed or hired over a period of time to the proportion of minorities in the labor force (or population) in the relevant geographic area (demographic method). The two statistical methods may yield conflicting results. Although the first approach is the standard two-sam ple test of equality of proportions (binomial probabili ties), Mark Rosenblum2 emphasized that the logic underlying its applicability rests on two assumptions: ability and qualifications for the job are distributed sim ilarly in all race (sex) groups in the population; and the people who actually apply for the job can be considered a random sample from the total population (or the rele vant subpopulations). Kenneth T. Lopatka3 noted that if the minority group contains a disproportionately large share of incompetent potential candidates or if some eligible candidates are eliminated by the imposi tion of an invalid requirement (so some might not even apply), the actual applicants may not even be a close approximation to a random sample. The demographic method does not rely on applicant data. It was originally used because courts noticed that minority members might not apply to firms with a rep utation for employment discrimination. So that even though a statistically acceptable proportion of minority applicants get jobs, the minority proportion of all hires Joseph L. Gastwirth is professor of statistics and economics at the George Washington University. This was adapted from a paper pres ented at the annual meeting of the American Statistical Association at Houston in August 1980. 50 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis may be far less than the minority population share.4 Thus, the two statistical methods are consistent only when the recruiting process draws a representative sam ple of all eligible applicants and the pool of eligible ap plicants can be determined from available data. Indeed, two 1977 Supreme Court decisions emphasize the im portance of properly specifying the labor pool for new hires,5 and recent articles in the legal literature have been concerned with this topic.6 This study will show that the appropriate labor force in minority hiring and promotion cases may have racesex proportions substantially different from those de rived from the 1970 census or from the Current Popula tion Survey, the two most commonly used statistical sources. The reasons for this include the following: 1. 2. 3. New hires come from persons not in the labor force, (for example, students and persons returning to the labor market) in addition to the current labor force. The racesex proportions of these sources of new hires are quite di fferent from those among the currently employed; The census data for 1970 and, to a lesser extent, more current data include many employed persons who were hired prior to the 1964 Civil Rights Act, possibly re flecting pre-act societal discrimination.7 Thus, the minori ty fraction of post-act entrants to the labor force, espe cially a “qualified labor force,” is usually higher than the corresponding fraction of persons employed in that occu pation as of 1970 (or even 1980); Because persons already employed in an occupation for some time typically earn more than the beginning wage o ffered by an alternative employer and may be em ployed in higher level positions in the occupations, they are unlikely to be interested or available for entry level positions in that occupation and should be excluded from the potential labor pool for new hires.8 Because the race-sex mix of potential new hires differs from that of the entire labor force, refinements to the statistical procedure which adjust for some of the prob lems noted are discussed. For example, occupational wage data on employed persons enable us to account for the fact that persons who change jobs usually seek another job paying at least as much as the previous one.9 This approach also tends to correct the census data for pre-act hires, as wages typically increase with seniority. Although there are severe data limitations with the use of gross flow data to refine the “entrant” portion of the labor force,10 the wage adjustment alone more accurately defines the available labor pool than do the census data. This approach is illustrated on data used in a case on new hires and in one on promotions, showing how it narrows the differences in the results obtained from the applicant flow and demographic approaches.11 Because labor force data are also being used in pro motion cases,12the applications of this refinement of the occupational wage data also are discussed in that con text. In particular, it is shown that by failing to make an adjustment for pre-act employees in the 1970 census data, a Federal appeals court may have reached a statis tically incorrect inference, as it excluded pre-act promo tions from the firm’s data which it then compared to the raw census data. In a final section, the need for better labor market data is discussed, as well as the implications for the use of statistical hypothesis testing when the minority pro portion against which the data are tested is itself inac curate. Refining availability data Courts have noted that the 1970 census data on per sons employed in a specific occupation may be outdated or may reflect discrimination that occurred prior to the 1964 Civil Rights Act,13 and, therefore, underestimate the availability of minorities for new positions. The Su preme Court’s Hazelwood decision14focused attention on post-act hiring data and the need to develop statistical methods to exclude employees hired prior to the law’s e ffective date from census or other data15 to properly an alyze an employer’s post-act hiring decisions. It can be demonstrated that the use of all employed persons or persons in the civilian labor force as a refer ent group for new hires can lead to serious errors. Re call that the labor force is composed of employed persons and persons available for work who are unem ployed. Furthermore, the unemployed are classified into three subcategories: persons laid off from their most re cent jobs; persons who quit their previous jobs; and persons who have just entered or reentered the labor force. The available pool for new hires can be similarly separated into persons who have been unemployed, those employed elsewhere, or those who are not in the Table 1. labor force but intend to enter or reenter the labor force. The Bureau of Labor Statistics reports monthly data on the flow of workers from both unemployment and not in the labor force into employment.16 The data for 1978 are presented in table 1. Although data specifically for job changers (persons employed in consecutive months but who changed em ployers) are unavailable, they are counted in the em ployed category. It is evident from the percentages in table 1 that using the currently employed civilian labor force as a referent to determine an affirmative action goal or standard of comparison in a legal case yields an underestimate of the proportion of minorities and wom en in the available labor pool for new hires. The degree of this statistical bias may depend on the particular po sition, as the fraction of new hires who come from the currently employed undoubtedly varies among the occu pations and by experience level within an occupation. As an estimate of the magnitude of the bias, a recent survey showed that 4.1 percent of persons currently employed were looking for work.17 Of course, not all seekers of jobs find them within a month, so the actual job changers form a smaller percentage than 4.1 percent of the employed. However, the turnover in manufactur ing jobs ranges from 1.1 to 3.4 percent with a typical value of about 2.2 percent.18 For illustrative purposes, assume that 2.5 percent of the employed change jobs. Then the composition of new hires can be derived from table 1 by adding 2.5 percent of the previous month’s employed to the new hires. The results are presented in the following tabulation: T o ta l.............. M a le .......................... Female........................ White ....................... Nonwhite................... N um ber P ercen t 7,393 3,659 3,734 6,414 979 49.50 50.50 86.76 13.24 Comparing these race-sex percentages of the available labor force with those of the currently employed in ta ble 1, we note that the difference between 13.24 and 11.66 percent for minorities is more important than it may first appear because minorities are not spread uni formly over the country. In an area where the labor force goal is about 35 percent, our estimate of availabil- Civilian labor force employment and new hires, by race and sex, annual averages, 1978 [Numbers in thousands] C iv ilia n la b o r C u r r e n t ly N e w h ir e s f r o m fo rc e e m p lo y e d u n e m p lo y m e n t C h a r a c t e r is t ic Total ..................................................... Vale ................................................................... Female .............................................................. W hite.................................................................. Nonwhite............................................................ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Num ber P e rc e n t N um ber P e rc e n t 100,312 58,589 41,723 88,618 11,694 100.00 58.41 41.59 88.34 11.66 94,433 55,659 38,774 84,145 10,288 100.00 58.94 41.06 89.11 10.89 Num ber 1,678 921 757 1,396 282 F r o m n o t in la b o r f o r c e P e rc e n t Num ber P e rc e n t 100.00 54.89 45.11 83.19 16.81 2,882 1,068 1,814 2,494 388 100.00 37.06 62.94 86.54 13.46 51 MONTHLY LABOR REVIEW April 1981 • Communications ity would be 40 percent. Moreover, lower paid workers are more likely to search for a new job while employed,19 so that our adjustment, especially for minorities, may still be on the low side. As detailed data on new hires by occupation or geographic region are not available, we now turn to the development of methods of refining the census labor force data to obtain a more realistic es timate of the labor pool available for new hires. One method for eliminating pre-act hires from census data is based on the fact that senior employees tend to earn more than the entry level wage and normally seek jobs paying at least as much as they currently earn.20 This idea only applies to the potential new hires among currently employed persons. And because the other two sources of new hires have higher minority percentages, it often yields reasonable numbers for the whole problem. Moreover, courts have often relied on experienced labor force data as the demographic refer ent, and indeed prior experience may be required for some jobs. In addition to the use of wage data, in some applica tions data on school and university enrollment may be used to develop availability data for specific occupations such as lawyers, teachers, and technicians. Potential new hires may then be separated into persons hired di rectly from school and those hired from the external la bor market. Illustrations In this section, two cases are examined to show how apparent conflicts between applicant flow data and the demographic method are diminished considerably when high wage earners are eliminated from the labor force to obtain the new hire pool. Hill v. Western Electric pres ents the issue clearly.21 Entry level assembler positions requiring no previous background or experience were at issue. Applicant flow statistics showed that both black and female applicants had significantly lower hire rates than their white and male counterparts. The data for 1970-74 are shown in table 2. To rebut the applicant flow statistics, the employer introduced data for the standard metroplitan statistical area ( s m s a ) showing that blacks formed 24 percent and women 40.4 percent of the civilian labor force. Because 25 percent of the hires were black, the firm claimed it had not discriminated in hiring blacks. A more accurate new hire pool might exclude persons earning more than $10,000 (in 1969 dollars) from the labor force and oper ative data.22 The basic labor force data as well as data on earnings of the experienced labor force are given in table 3. Blacks form about 40 percent of the experienced la bor force and an even higher proportion of operative workers earning less than $10,000. As blacks formed 38.1 percent of the unemployed in the relevant SMSA, 52 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis their proportion of the applicants (44 percent) probably reflects the lack of commuting problems.23 Similarly, the female proportion of all applicants (41.1 percent) is be tween their percentages of the overall and operative la bor force without high wage earners. Recalling the high proportions of women hired from the unemployed and out of the labor force categories in table 1, we realize the female share (30 percent) of actual hires is lower than their estimated availability from each source. Thus, Judge Bryan’s original finding of discrimination in hir ing of both blacks and females on the basis of applicant data is not in conflict with a proper demographic analy sis. Indeed, the applicants (table 2) appear to be a rep resentative sample from the labor pool available for the jobs at issue. Both the District Court and appellate opinions in EEOC v. UVBU illustrate the problem and our approach quite clearly. Both courts stated that the proper com parison for determining whether the bank had engaged in racial discrimination in hiring for office/clerical and management positions is between the black fraction of the employees in these jobs and the black percentage of the local force with the requisite qualifications, not the black fraction of the total labor force or population. The District Court allowed the EEOC to establish a prima facie case (later rebutted by the defendant), in part on the basis of a significant disparity between the black fraction of employees in each job category and the SMSA data. The Fourth Circuit asserted that the EEOC failed to establish a prima facie case because it made no effort to exclude employees hired prior to the effective date of the Civil Rights Act. Moreover, the appeals court disregarded applicant flow data showing that 12.4 percent of whites were hired but only 4.4 percent of blacks because applicants for all positions were aggre gated, and no evidence was presented by the EEOC as to qualified applicants. The data used by the District Court, based on a Vir ginia Employment Commissions report for 1975: Job category Black percentage in SMSA (1975) Black percentage of employees (1970) Black percentage of employees (1974) M anagers......... Office/Clerical . . Operative......... Service.............. 4.8 14.0 45.4 49.6 0.0 6.5 20.0 55.0 1.8 9.5 33.3 78.6 The Fourth Circuit rejected the EEOC’s assertion that the black percentage (27 percent) of the total labor force in the Norfolk-Portsmouth s m s a should be used as the availability figure for clerical workers and agreed with the District Court choice of referent data. Howev er, it disagreed with the judge’s use of “ 1975” referent data to evaluate the 1970 employment pattern25 and proceeded to perform the usual “standard deviation” Table 2. Co. 1970-74 applicant-hire data for Western Electric W o rk e r c h a r a c t e r is t ic s A p p lic a n t s H ir e s P e rc e n t h ir e d Num ber P e rc e n t Num ber P e rc e n t Race: B la c k ............................... W h ite ............................... 1,489 1,893 44.03 55.97 189 565 25.06 74.94 12.7 29.8 Sex: Female ........................... Male ............................... 1,443 2,068 41.10 58.90 244 555 30.54 69.46 16.9 26.8 analysis on the bank’s employment data and on em ployees hired in the post-act era. The Fourth Circuit did not eliminate high wage earners from the Census data, even though the District Court had found that a specific plaintiff did not suffer discrimination when she was not hired in 1972 for a clerical job paying $300 a month because she had been paid $375 a month in her previous job and expressed interest in jobs of the same level she previously held. Because the census earnings data report 1969 earnings, eliminating clerical workers receiving more than $3,600 would be conservative and allow for some persons who are willing to take a small pay cut. Repeating the same type of calculations made in our discussion of Hill v. Western Electric, we found that blacks formed 14 percent of all clericals, 14.9 percent of clericals earning less than $4,000 in 1969, and 17.2 per cent of all clerical workers earning less than $3,000 in 1969. For the specific positions of bank tellers and ca shiers, the corresponding percentages are 14.6, 16.1, and 17.2. Therefore, it seems reasonable and conservative to use 15.5 percent instead of 14 percent as the black availability for entry level clerical jobs. As there were 301 clerical employees at u v b hired after July 1, 1965, we would expect 46.66 black clericals in contrast with the actual number of employees (30) which leads to a dif ference of 2.65 standard deviations instead of the 2.02 calculated by the Fourth Circuit. Although our approach did not increase the number of standard deviations between the observed and expected number of black clerical employees to three or more, the data are significant at the .01 level rather Table 3. than at the .05 level. Thus, our approach supports Judge Clarke’s original finding that a prima facie case had been established as well as Judge Butzner’s concur rent opinion. Moreover, excluding higher paid workers in the other occupations would also have reinforced the statistics showing black underrepresentation in manage rial positions. Both overall labor force data and specific occupation al data have been used by a number of courts to aid in the determination of liability and in fashioning an ap propriate remedy in cases involving possible discrimina tion in promotions. In particular, the Fourth Circuit held in two promotion cases26 “that the ratio of blacks and females in supervisory positions should be judged on the basis of their ratio in the qualified work force and that a standard might be found in the SMSA data.” Because 1970 census data on managers include per sons employed in higher paid supervisory positions, many of whom presumably became first level managers prior to July 1965, the concepts developed above imply that the basic labor force data need some refinement be fore being used in a promotion case. In contrast with the demographic comparisons in hir ing cases, where persons represented by census data could actually apply or be recruited for jobs, promotion cases focus on the advancement of current employees. Although most statisticians would prefer to base their analysis of promotion data on a test of the significance of the difference in the promotion rates,27 comparisons with an external group are needed in cases where mi norities are underrepresented in the feeder position, ei ther because of hiring discrimination28 or because of discriminatory placement or advancement at an earlier level.29 Judges have also used demographic comparisons to find a firm innocent of discrimination when minori ties were “overrepresented” in the feeder position but received a share of promotions corresponding to their proportion of the total labor force.30 Our approach should aid in defining an appropriate comparison group from census data. In Patterson v. American Tobacco Company,31 the Fourth Circuit upheld the district court’s finding that blacks and women had been discriminated against in Basic labor force data for the Washington SMSA, 1970 Census C iv ilia n la b o r E x p e r ie n c e d la b o r fo rc e fo rc e C h a r a c t e r is t ic T o ta l........................ Male ................................... Female ............................... B lack................................... Num ber P e rc e n t Num ber P e rc e n t 1,292,347 769,718 522,629 310,505 100.00 59.56 40.44 24.03 1,174,888 680,522 494,366 294,130 100.00 57.93 42.07 25.03 E x p e r ie n c e d la b o r O p e r a t iv e s in f o r c e e a r n in g le s s e x p e r ie n c e d la b o r t h a n $ 1 0 ,0 0 0 fo rc e Num ber 737,059 387,106 349,953 267,976 O p e r a t iv e s e a r n in g le s s th a n $ 1 0 ,0 0 0 P e rc e n t Num ber P e rc e n t Num ber P e rc e n t 100.00 52.52 47.48 39.91 41,182 27,175 14,117 15,919 100.00 65.72 34.28 38.65 37,259 23,407 13,852 15,248 100.00 62.82 37.18 40.92 S ource : Data from the S M S A labor force are from tables 164-65 and those for the experienced labor force are from tables 175-76 of the Detailed Characteristics Volume of the 1970 Census for the District of Columbia. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 53 MONTHLY LABOR REVIEW April 1981 • Communications promotions, but overturned the district court’s remedy that vacancies for foremen and assistant foremen be filled with qualified blacks and women, except when none could be found, until their proportion equalled that in the Richmond, Va., SMSA work force. The appeals court focused on the firm’s post-act em ployment decisions in its two Richmond branches. Dur ing the post-act period, 1965-73, at the “Virginia Branch,” the company appointed 18 assistant foremen, of whom 5 (27.5 percent) were black and 3 (16.6 per cent) were women. At the “Richmond Branch,” 3 (33.3 percent) of the 9 post-act supervisory appointments were black and 2 (22.2 percent) were women. Of the six entry level supervisory positions at the Richmond Branch at the time of the trial, 5 were white men with one vacancy, although there was some evidence indicat ing that the defendent subsequently promoted one black and one woman. The appeals court found that 6.8 percent of the blacks and 1.5 percent32 of the women in the Richmond SMSA could be classified as supervisory personnel. How ever, in a post-Hazelwood appeal,33 the defendants asserted that blacks formed 12 percent of those eligible for supervisory work and women, 5 percent. These data were used by appeals court Judge Widener in dissent, claiming that these percentages were lower than the per centages of new promotions that actually went to blacks and women. Ideally, the company’s promotion data should be compared with all promotions to supervisory positions made from July 1965 through March 1970 in the labor market area. As these data are unavailable, a reasonable substitute is to eliminate senior (higher paid) superviso ry positions. This should yield a closer approximation to the desired data on persons holding comparable low er level supervisory positions. For purposes of illustra tion, a 1969 income of $7,000 was used as the salary for entry level supervisors.34 Table 4 reports the number and minority percentages of the experienced civilian la bor force, managers and administrators, and foremen. Table 4. The experienced civilian labor force eligible for supervisory occupations, by salary, in the Richmond SMSA, 1970 Census W om en M en B la c k L a b o r fo r c e g ro u p Total labor force . . . Experienced labor force . .. Managers ........................... Eligible m anagers........... Foremen ............................. Eligible foremen ............. Num ber P e rc e n t Num ber P e rc e n t Num ber P e rc e n t 128,962 59,591 16,887 3,334 4,104 729 59.00 42.82 85.11 61.59 92.83 76.82 89,602 79,583 2,955 2,079 317 220 41.00 57.18 14.89 38.41 7.17 23.18 50,246 43,319 1,211 706 359 154 22.99 31.13 7.17 13.04 8.12 27.57 Note: For each of the three occupations, the minority percentages of the entire popula tion and of the eligible portion of the occupation (workers earning less than $7,000) were used. 54 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The data for all workers and for persons who earned less than $7,000 in 1969 are presented. Regardless of whether one considers the general man agerial category or the specific occupation of foremen as the appropriate comparison group, it is clear that the minority share of lower level jobholders (thus eligible for promotion) is substantially larger than their percent age of all persons employed in the occupation. Using the “eligible foremen” as a comparison group, we might conclude that the firm promoted enough blacks but women had not received their fair share. Of course, the dates of the minority promotions played a major role in the original finding of discrimination which was sustained by the Fourth Circuit. Although this statistical approach might not have led the Fourth Circuit to reach a different decision in its re versal of the quota remedy, it does give a more realistic measure of the available labor pool for entry level su pervisory positions. Implications We have seen that the female and minority propor tion (p,) of persons employed in an occupation usually is an underestimate of their proportion (p2) of the labor pool available for hire into lower level positions within that occupation and that this difference is often sub stantial enough to change the statistical inference reached by the judiciary. In this section we present for mulas for the difference, in standard deviation units, be tween the actual and expected number of hires when a low availability proportion (p,) is used instead of p2and the number of hires that female and minority plaintiffs consequently lose in legal proceedings because of an un derestimate of availability. If minority availability is overestimated, similar formulas yield the number of “excess” minority members firms would need to hire to “pass” the usual standard deviation analysis.35 Numeri cal results obtained from these formulas illustrate the important role the assumed availability proportion plays in the statistical analysis once a moderate number of hires is examined. Therefore, we suggest the need for additional labor market data which should aid in im proving the accuracy of availability estimates. Letting S denote the number of standard deviations from the expected number of hires when M minorities are observed among n hires calculated under the as sumption that the minority function of the available la bor pool is Pj, and letting T denote the corresponding number of standard deviations from expected assuming that minority availability is p2, we have . . (M —np.) (M —np,) (1.1) S = — ------ ^ — , T = — -------- — [ n p .a - p ,) ] '« [np2(1 —P2)]l/2 and (P2-P1) + s P.O —P,) 1/2 [p2( l - p 2)]1/2 P2( l - P 2) (1.2) T When p, is less than p2and n is of reasonable size, the value of T is less than S; for example the plaintiff is re quired to show a disparity of more than 2 or 3 standard deviations from the expected number of hires in order to establish a prima facie case under the Hazelwood cri teria. Conversely, a defendant employer is similarly dis advantaged when minority availability is overestimated. Another measure of the potential minority loss in em ployment from using p, instead of p2 as the minority availability fraction is the difference between the mini mum number of minority hires a firm needs to “pass” the 2 standard deviation criterion. For any value of p, this minimum number is given by (1.3) np — 2 [np(l —p)]1/2 so using p, instead of p2 (when p, < p 2) leads to an expected loss of (1.4) n(p2—p,) - 2nl/2 [(p2( l - p 2))1/2 - ( p ,(l-p ,) ) 1/2] jobs in a legal action. This loss in jobs is usually slight ly less than the difference, np2—np,, between the expected number of minority hires calculated using the different availability fractions, as the statistical allow ance for chance effects has been taken into account. In table 5, we present the true number (T) of stan dard deviations from the expected number of hires when the number of standard deviations (S) is calculat ed assuming an availability fraction p,, while the true availability is p2 (larger than p,). The results are given for sample size (n=100, 300, 1000) and for several choices of p, and p2 and values of S = 0 and —1. The number of legally missed hires (equation 1.4) is also re ported. To avoid the problem of rejecting the null hypothesis for insubstantial differences we have selected values of p, and p2 which obey p ,/p 2< 0.836 and sample sizes which are reasonably, but not overly, large. The results show that when S = —1 (for example, minority hires are one standard deviation below expectation) a dif ference of 5 percentage points between p, and p2 would yield significance according to the 2 standard deviation criterion for samples of size 100 and a difference of 3 percentage points yields significance using the 3 STD cri terion for samples of 300. Thus, comparatively small er rors in the determination of the minority fraction (p) of the available labor pool can have a large effect on the ultimate statistical inference. It should be noted that the effect of the “statistical allowance” (the second term in (1.4) or the difference between n(p7—p,) and the lost hires in table 4) depends on the actual values of p, and p2. Indeed, for pairs (p,, p2) with the same difference p2— p,, it is larger for the smaller values; that is, the allow ance is larger for (p,, p2) = (.1, .15) than for (.2, .25). Hence, the statistical allowance for chance effects in creases the importance of properly determining the mi nority availability (p) when p is small. The results also indicate the influence of sample size upon the degree of statistical significance. To develop more accurate estimates of minority avail ability (p), statisticians and labor economists will re quire more data of a longitudinal nature. Even our re finement of the data on currently employed persons (to a yield a more realistic estimate of the race-sex mix of job changers) is just one step in the process because new hires come from other components of the labor force (table 1). Moreover, about 10 percent of all work ers change jobs during a year and the occupational mo bility rate varies by occupation, age, education, and to a lesser extent by race.37 Because it is virtually impossible to obtain precise estimates of mobility for very specific jobs (for example, waiters), one can use data showing that 30 to 40 percent of job changers move to other jobs within the same broad occupational category to aid in the development of a weighting model or transition matrix. Some types of information which will enable us to develop more precise availability estimates include: 1. The proportion of new hires in an occupation coming from each of the three components of the labor force. 2. The previous jobs and the salary in both old and new jobs for job changers. 3. For the new and re-entrant portions of the labor force, data on the nature of the job sought and qualifications re quired (for example, training, previous employment). Much of the data could be obtained by additional tabu lations of the gross flow data by broad occupational categories and by making the CPS supplements on occu- Table 5. True number of standard deviations from expected value and lost hires when the number of standard deviations was calculated assuming a low value of P1 P o p u la t io n = 100 P o p u la t io n = 3 0 0 Low P T ru e P P, P2 .10 .20 .15 .25 .05 .05 -1.40 -1.15 -2.24 -2.08 3.86 4.34 -2.43 -2.00 -3.27 -2.92 .10 .20 .30 .20 .30 .40 .10 .10 .10 -2.50 -2.18 -2.04 -3.25 -3.06 -2.98 8.00 8.83 9.37 -4.33 -3.78 -3.45 -5.08 -4.65 -4.47 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis P2’ P, S = 0 S = -1 L o s t h ir e s S = 0 S = -1 P o p u la t io n = L o s t h ir e s S = 1000 0 S = -1 L o s t h ir e s 13.02 13.85 -4.43 -3.65 -5.27 -4.58 46.39 47.91 26.54 27.98 28.90 -7.91 -6.90 -6.45 -8.66 -7.77 -7.39 93.68 96.32 98.00 55 MONTHLY LABOR REVIEW April 1981 • Communications pational mobility and job search regular yearly surveys. As all the above-mentioned labor market information may not be readily available, other possible approaches that could yield more accurate availability estimates than the raw census data on employed persons are: 1. For entry-level jobs an age-weighted labor force model can be developed using the age distribution of new hires in a weighted average of the minority proportions in the same age brackets in the relevant labor force. This approach tends to place relatively little weight on senior workers and more on younger workers, most of whom were hired in the post-Civil Rights Act era and who do more job changing. Because of Age Discrimination in Employment Act, one might wish to use this method to supplement another ap proach. 2. For some occupations (for example, lawyers and phar macists), data on new degree recipients38 or on persons employed in various types of jobs within an occupation39 may be useful. 3. Memberships rosters of professional societies40 and Nation al Research Council data on scientists and engineers may also be helpful. However, using the demographic mix of all persons on these registers as a referent for new hires will typically underestimate minority availability as does raw census data. Hence, an adjustment based on current posi tion and salary may be needed. In situations where several reasonable methodologies yield slightly differing availability estimates, the actual hiring data can be tested against all values of p. Fre quently, the ultimate statistical conclusions, at the usual .05 and .01 levels of significance, will agree. □ FOOTNOTES A c k n o w l e d g m e n t : The author thanks the staff of the Office of Statistical Policy and Standards of the Department of Commerce for valuable discussions concerning the reliability and availability of vari ous statistical series. The research was supported in part by a Nation al Science Foundation grant. 1Distilled from three methods established in G reen v. M iss o u r i Pac. R .R . Co., 523 F.2d 1290 (8th Cir. 1975). 2 Mark Rosenblum, “The Use of Labor Statistics and Analysis in Title VII Cases: Rios, Chicago and Beyond,” I n d u s tr ia l R e la tio n s L a b o r J o u rn a l, Vol. 1, 1977, pp. 685-710. ' Kenneth T. Lopatka, “A 1977 Primer on the Federal Regulation of Employment Discrimination,” U n iv e rs ity o f I llin o is L a w F o ru m , 1977, pp. 60-168. 4 For example, in J o n e s v. T r i-C o u n ty E le c tr ic C o o p era tive, 512 F.2d 1 (5th Cir. 1975) the court noted that although 8 of 23 black appli cants were hired in contrast with 35 of 159 white applicants so that blacks had a larger hire rate (34 percent vs. 22 percent), the black fraction of hires was only 18.6 percent, less than half of their fraction (40 percent) of the population. Moreover, during the first seven years the Civil Rights Act was in effect the defendant had employed only one black person. Thus, the fifth circuit reversed the district court de cision, which apparently relied on the applicant-hire percentages, when it found the firm innocent of violating Title VII. H a z e lw o o d S c h o o l D is tr ic t v. U n ite d S ta tes, 97 S. Ct. 2736 (1977), B r o th e r h o o d o f T e a m s te rs v. U n ite d S ta tes, 431 U.S. and I n te r n a tio n a l 324 (1977). 6 Marcy Hallock, “The Numbers Game— The Use of and Misuse of Statistics in Civil Rights Litigation,” V illa n o va L a w R ev ie w , Vol. 23, 1977, pp. 5-34; and Mark Rosenblum, “The External Mea sures of Labor Supply: Recent Issues and Trends,” C o n n e c tic u t L a w R ev ie w , Vol. 10, 1978, pp. 892-919. Several courts have noted this explicitly; for example G reen sp a n v. A u to m o b ile C lu b o f M ich ig a n , 22 FEP Cases 184 (1980), at 192; S m ith v. U n ion O il Co. o f C a lifo rn ia , FEP 960 Cases (1978), at 967. The fact that the defendant city had hired a black as a fireman or in an admin istrative capacity prior to 1974 played a role in Judge Keady’s deci sion to rely on applicant flow data rather than the demographic method in N A A C P v. C ity o f C orin th , 20 FEP Cases 1044 (1979), at 1056. * In H o a r d v. T eletyp e, 20 FEP Cases 1070 (1978), Judge Heany noted that the “Managerial” census category included higher level managers, for example, vice presidents, while no black had ever held supervisory positions higher than section chief. The reverse situation may occur when senior positions are being filled; see A g a r w a l v. M c K e e , 19 FEP Cases 501 (N.D. Ca„ 1977). 4See Carl Rosenfeld, “The extent of job search by employed work ers,” M o n th ly L a b o r R ev ie w , March 1977, p. 57, who reports that the 56 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis most common reason given by employed workers seeking a new job is the desire for higher pay. Moreover, low pay is the most frequent rea son given by unemployed persons for declining a job. See Carl Rosenfeld, “Job search of the unemployed, May 1976,” M o n th ly L a b o r R ev ie w , November 1977, p. 39. 10 For more information concerning the potential usefulness of and problems inherent in the gross flow data, see T. F. Bradshaw, “Em ployment in perspective: a cyclical analysis of gross flows in the labor force,” Report 508 (Washington, U.S. Department of Labor, 1977); Harvey J. Hilaski, “The status of research on gross changes in the la bor force,” E m p lo y m e n t a n d E a rn in g s, October 1968; and R. E. Smith and J. E. Vanski, “Gross change data: the neglected data base ” (Washington, National Commission on Employment and Unemploy ment Statistics, 1975). Also see Barbara Bailar, “The Effects of Rota tion Group Bias on Estimates for Panel Surveys,” J o u r n a l o f th e A m e r ic a n S ta tis tic a l A sso cia tio n , March 1975, pp. 23-30. " Courts have taken different views on the issue of which of the two approaches is the more relevant, in part, because they do not wish to penalize an employer for taking affirmative action in recruitment. Some relevant cases are: H ill v. W estern E le c tr ic C o., 12 FEP Cases 1175 (E.D. Va., 1976), at 1179, 19 FEP Cases 596 F.2d 99; H e s te r v. S o u th e rn R a ilw a y C o., 497 F.2d 1374 (5th Cir, 1974); R o b in s o n v. U n ion C a rb id e , 538 F.2d 652 (5th Cir., 1976); and P a te v. T r a n s it D is trict, 21 FEP Cases 1228 (N.D. Cal., 1979) at 1231. 12 See P a tte r s o n v. A m e r ic a n T o b a c c o Co., 8 FEP Cases 778; 12 FEP Cases 314, 535 F.2d 257; 18 FEP Cases 378. S m ith v. U n io n O il Co. o f C a lifo rn ia , 17 FEP Cases 960 (1978) and cases using employment data from comparable employers, for example, G a rc ia v. V icto ria I n d e p e n d e n t S c h o o l D istric t, 17 EPD 8544. 'See U.S. v. C o u n ty o f F a irfa x , 23 FEP 485 (4th Cir. 1980); G reen sp a n v. A u to m o b ile C lu b o f M ich ig a n , 2 2 FEP Cases 184 (1980); E E O C v. R a d ia to r S p e c ia lity C o., 21 FEP Cases 351 (1979) at 357. 14433 U.S. 299 (1977). 1 Two post- H a z e lw o o d decisions which illustrate the effect of em phasizing postact hiring data rather than employment statistics are E l C o n c ilio v. M o d e s to S c h o o l D istric t, 17 FEP Cases 819 (1978) and D r a y to n v. C ity o f P e te rsb u rg h , 20 FEP Cases 1495 (M.D. Fla., 1979). 16These data are not published regularly due to technical difficulties noted in the article cited in footnote 10; however, it is available on re quest. 1 See Carl Rosenfeld’s articles cited in footnote 9. 18 See “Measurement and Significance of Labor Turnover” (Wash ington, National Commission on Employment and Unemployment Statistics, 1979), Background paper 27. 14 See Carl Rosenfeld’s first article cited in footnote 9. 20 Because some persons are willing to take small pay cuts to move to jobs offering better opportunities for advancement or having a con- venient location, we will usually include persons making 10 to 15 per cent more than the beginning wage in the available labor pool. The author has not seen any data showing that a sizable fraction of job changers is willing to move to jobs involving a large percentage pay decrease. 12 FEP Cases 1175 (E.D. Va., 1976). Although this part of the district court’s decision was reversed on grounds of standing. Unfortunately, the entry level salary was not reported so we are using a relatively high salary (in 1969 dollars) for such jobs. For a more recent case in which the applicant flow approach was preferred, in part, because most new hires were given low paying production jobs, see V au gh n v. W estin gh ou se, 19 FEP Cases 1475 (1979). 23 For further discussion of modifications of census labor force data to account for commuting patterns, see Joseph Gastwirth and Sheldon Haber, “Defining the labor market for equal employment standards,” M o n th ly L a b o r R ev ie w , March 1976, pp. 32-36; and dis cussions in M a r k e y v. T e n n ec o O il Co., 439 F. Supp. 219, 234-235 (E.D. La., 1977); G a y v. W a ite r's U n ion L o c a l 30, 22 FEP Cases 281 (N.D. Cal., 1980), at 296-7; and E E O C v. N o rth H ills P a s s a v a n t H o s p ita l, 19 FEP Cases 212 (W.D. Pa., 1979). 24 21 FEP Cases 1392 (E.D. Va., 1977), 21 FEP Cases 1405 (4th Cir. 1980). See the original opinion at 1400. The Court relied on a Virginia Employment Commission report for 1975. The author reproduced these numbers from tables 86 and 93 from the General Social Eco nomic Statistics Volume of the 1970 Census for Virginia. Thus, the Court was incorrect in criticizing the original opinion. Indeed, the State agency report may have misled the Court about the currentness of the data. " P a tte rs o n v. A m e r ic a n T o b a cco Co., 18 FEP v. W estern E le ctric , 19 FEP Cases 490 (1979). 7David C. Baldus and Joseph W. L. Cole, (New York, McGraw-Hill, 1980). Cases 378 (1979); H ill S ta tis tic a l P r o o f o f D is c r im in a tio n G a rc ia v. V icto ria I n d e p e n d e n t S c h o o l D istric t, ' K y r ia z i 17 EPD Cases 8544. 924; S t. M a r ie v. v. W estern E le c tr ic C o., 18 FEP Cases E .R .R . A s s ’n, 458 F. Supp. 1147 (S.D. N.Y., 1978). 10S m ith v. U n ion O il C o., https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis cited in footnote 12. ” 8 FEP Cases 778 (1974). 32The source of the data quoted was not reported. The author could not reproduce the percentages from published census data. ” 18 FEP Cases 378 (1979), at 383. The entry level salary used (1969) for the position appears reason able, perhaps conservative. In legal proceedings, the actual salary should be used. Since H a z e lw o o d , this technique has become a standard method of statistical proof. For more discussion and additional cases, see Chap ter 9 of Baldus and Cole cited in footnote 27; and Michael O. Finkelstein, “The Application of Statistical Decision Theory to the Jury Discrimination Cases,” H a r v a r d L a w R e v ie w , Vol. 80, 1966, pp. 338-76. And, Judge Higgenbotham’s opinion, in V u ya n ich v. R e p u b lic N a tio n a l B a n k , 24 FEP Cases 128 (1980), interprets the meaning of statistical significance at 223-24, and illustrates the importance of properly determining the availability fraction, p, at 243-44. '’For further discussion of the “four-fifths rule” and the EEOC testing guidelines, see Jacob Van Bowen and C. Riggins, “A Techni cal Look at the Eighty Percent Rule as Applied to Employee Selec tion Procedures,” U n iv e rs ity o f R ic h m o n d L a w R ev ie w , Vol. 12, 1978, pp. 647-56. 7See Carl Rosenfeld, “Occupational mobility during 197.7,” M o n th December 1979, pp. 44-A8; Patrick Wash, “Occupa tional mobility of health workers,” M o n th ly L a b o r R ev ie w , May 1977, pp. 25-29; and Dixie Sommers and Alan Eck, “Occupational mobility in the American labor force,” M o n th ly L a b o r R ev ie w , January 1977, pp. 3-19. ly L a b o r R e v ie w , 3* These are published by the National Center of Educational Statis tics; the 1975 survey of recent doctorates was used to determine avail ability of C o o p er v. U n iv e rs ity o f T e x a s a t D a lla s, 2 2 FEP Cases 1064. 39 For example, the Bureau of Health Manpower in the Department of Health and Human Services issued data on type of position held by Pharmacists in the report, P h a r m a c y M a n p o w e r R e s o u r c e s (for 1974) and in separate reports for each State. Membership data in the AAUP were used in C o o p er v. U n iv e rs ity FEP Cases 1064 to compare the percentage of tenured female professors with the national average. o f T e x a s a t D a lla s , 2 2 57 Productivity Reports Productivity slows or drops in 1979 in more than half of industries measured A rth u r S. H erm an Productivity, as measured by output per employee hour, declined or grew at a lower rate in 1979 than in 1978 in more than half of the industries surveyed by the Bureau of Labor Statistics. However, during 1974-79, more than half of the industries reported productivity gains. Over the long-term (1947- or 1958-79), all of the indus tries posted gains. Changes in 1979 Most mining, retail trade, and service industries posted declines, as did some transportation and large manufacturing industries. Conversely, gains were re corded in a few of the larger industries, including air transportation and telephone communications, and in a majority of the manufacturing industries covered. The slowdown is consistent with productivity in the non farm business sector, which declined 0.8 percent during the year. Table 1 shows productivity trends in indus tries measured by the Bureau, including new measures for the fabricated structural metal, construction machin ery, drug and proprietary stores, ball and roller bear ings, and bus carrier industries.1 Also included, for the first time, is a series for electric utilities and gas utilities. These indexes were developed by disaggregating the existing measure for gas and electric utilities. Manufacturing. Both steel and motor vehicles, which are among the larger industries covered, had productivi ty declines in 1979. In the steel industry, productivity fell 1.3 percent as output dropped 0.3 percent and em ployee hours went up 1.0 percent. Demand for steel was strong in the first half of the year, but fell off sharply in the second half. In the motor vehicles industry, produc tivity declined for the second consecutive year, falling 3.7 percent, as output declined more than employee hours. Motor vehicle production was high in the first Arthur S. Herman is an economist in the Office of Productivity and Technology, Bureau of Labor Statistics. 58 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis quarter, but demand began to fall in the second quar ter, in part, because of lower supplies and higher prices for petroleum; as a result, output decreased sharply during the remainder of the year. Other large manufac turing industries posting productivity declines in 1979 were: sawmills, —3.1 percent; petroleum refining, —2.2 percent; gray iron foundries, —0.8 percent; pulp and paper, —0.4 percent; and construction machinery, —0.3 percent. These industries, except paper, had declines in output in 1979. These large manufacturing industries posted produc tivity gains in 1979: fabricated structural metal, 6.0 per cent; fluid milk, 5.3 percent; motors and generators, 3.6 percent; household appliances, 3.0 percent; tires, 2.9 percent; household furniture, 2.8 percent; bakery prod ucts, 1.6 percent; footwear, 1.1 percent; soft drinks, 0.9 percent; and corrugated boxes and pharmaceutical prep arations, 0.5 percent each. Transportation. The productivity situation was mixed among transportation industries. Intercity trucking de clined 1.2 percent, and railroads (revenue traffic) dropped 0.1 percent. Conversely, air transportation posted a gain in productivity of 3.4 percent as output increased strongly, petroleum pipelines grew 2.2 per cent, and bus carriers increased 0.4 percent. Utilities. In utilities, the gas and electric industry posted its second consecutive productivity decline, dropping 0.5 percent. Both the gas and the electric utility compo nents of this industry had productivity declines in 1979. Telephone communications registered a gain of 3.6 per cent, with output continuing its high rate of growth. Mining. Most mining industries experienced productivi ty declines. Coal mining dropped 9.5 percent. Although coal output posted a significant gain, production worker hours grew even more as the industry recovered from a major strike in 1978. Copper mining (recoverable metal) and nonmetallic minerals recorded large productivity declines of 10.0 and 3.7 percent, respectively. In con trast, iron mining (usable ore) grew 6.9 percent as out put posted an above-average gain. Trade and services. Productivity declined in most retail trade and service industries, with laundry and cleaning Table 1. Indexes of output per employee hour in selected industries, 1973-79, and percent changes, 1978-79 and 1974-79 SIC C ode1 Industry 1973 1974 1975 1976 1977 1978 19792 Percent change 1978 79 Average annual percent change 1974-79 Mining3 1011 1011 1021 1021 Iron mining, crude ore .............................................. Iron mining, usable o r e .............................................. Copper mining, crude o r e .......................................... Copper mining, recoverable metal .......................... 130.6 123.6 118.6 97.8 124.0 114.2 114.7 86.9 129.7 118.6 122.2 91.3 130.6 116.8 140.5 110.6 126.0 110.5 145.4 117.1 135.1 121.4 158.6 125.2 147.0 129.9 148.6 112.7 8.8 6.9 -6.3 -10.0 2.7 1.9 6.2 6.8 111, 121 121 14 142 Coal mining................................................................ Bituminous coal and lignite mining............................. Nonmetallic m inerals................................................. Crushed and broken s to n e ........................................ 85.8 85.9 128.5 141.6 84.1 83.9 123.3 138.6 72.7 72.1 120.7 139.6 71.4 70.8 126.4 140.2 69.5 69.0 130.4 148.0 76.1 75.8 136.6 161.7 68.8 68.2 131.5 150.1 -9.5 -10.0 -3.7 -7.2 -2.5 -2.6 2.1 2.6 Manufacturing 2026 203 2033 204 2041 2043 2044 2045 2046 2047, 48 205 2061,62, 63 2061,62 2063 2065 2082 2086 Fluid milk .................................................................. Preserved fruits and vegetables ............................... Canned fruits and vegetables................................... Grain mill products ................................................... Flour and other grain mill products .......................... Cereal breakfast foods ............................................ Rice m illing................................................................ Blended and prepared flour ...................................... Wet corn milling ....................................................... Prepared feeds for animals and fo w ls ...................... Bakery products ....................................................... Sugar ......................................................................... Raw and refined cane sugar ................................... Beet sugar ................................................................ Candy and confectionery products ........................... Malt beverages.......................................................... Bottled and canned soft d rin k s ................................. 140.1 125.6 130.3 116.1 113.7 111.0 100.3 103.5 123.3 118.5 113.1 114.0 105.6 127.2 137.3 153.2 117.3 143.6 123.0 128.1 124.4 119.2 105.3 115.2 116.4 150.6 127.1 112.9 110.0 103.7 119.7 149.0 157.2 119.9 150.3 124.9 126.0 125.5 120.8 107.7 111.7 104.6 152.7 129.5 112.7 108.1 97.8 124.3 136.0 175.3 129.6 156.1 132.7 138.9 131.0 119.7 112.8 109.7 108.0 168.7 136.9 112.8 111.4 102.0 128.6 126.9 192.9 139.7 156.1 131.9 135.2 137.5 140.3 112.2 123.8 95.2 198.3 140.9 120.1 118.9 113.7 126.2 149.4 199.6 147.7 165.8 135.5 138.6 136.2 144.7 111.8 114.6 87.5 203.3 138.7 116.8 117.1 110.3 127.6 161.5 201.3 154.3 174.7 ( 4) ( 4) ( 4) 150.2 ( 4) ( 4) ( 4) ( 4) ( 4) 118.6 131.0 ( 4) ( 4) ( 4) 203.0 155.6 5.3 ( 4) ( 4) ( 4) 3.8 ( 4) ( 4) ( 4) ( 4) ( 4) 1.6 11.8 ( 4) ( 4) ( 4) 0.9 0.9 3.7 52.5 52.3 52.8 5.4 51.6 50.9 5 -6.4 5 9.0 5 2.6 1.2 3.4 5 2.8 51.4 5 2.6 5.1 5.5 2111,21,31 2111,31 2121 2251,52 2421 2435, 36 Tobacco products — to ta l.......................................... Cigarettes, chewing and smoking tobacco............... Cigars ....................................................................... Hosiery....................................................................... Sawmills and planing mills, general........................... Veneer and plywood ................................................. 108.1 104.9 116.8 147.7 112.9 126.7 111.9 106.5 128.6 168.5 108.2 127.4 114.2 110.3 126.5 191.6 112.7 142.2 119.3 114.1 137.1 219.5 118.2 142.4 122.4 117.5 139.8 208.6 115.3 147.2 125.0 122.0 137.0 209.5 116.4 147.4 127.6 122.7 148.4 236.5 112.8 ( 4) 2.1 0.5 8.3 12.9 -3.1 ( 4) 2.8 3.0 2.8 5.6 0.8 5 3.3 251 2511,17 2512 2514 2515 Flousehold furniture............... ................................... Wood household furniture ........................................ Upholstered household furniture............................... Metal household furniture.......................................... Mattresses and bedsprlngs ...................................... 123.3 127.9 113.7 119.9 138.3 121.2 122.8 114.2 114.3 147.8 123.6 120.5 120.8 119.0 152.7 126.3 124.4 122.2 121.7 156.7 126.7 122.9 124.6 126.2 158.8 131.9 127.6 136.1 122.8 161.4 135.6 ( 4) ( 4) ( 4) ( 4) 2.8 ( 4) ( 4) ( 4) ( 4) 2.2 51.0 53.9 52.0 52.2 2611,21,31,61 2643 2651 2653 2823, 24 2834 2841 2851 Paper, paperboard and pulp m ills ............................. Paper and plastic bags ............................................ Folding paperboard boxes ........................................ Corrugated and solid fiber boxes ............................. Synthetic fib e rs ......................................................... Pharmaceutical preparations ................................... Soap and detergents................................................. Paints and allied products ........................................ 135.4 125.1 114.1 130.2 176.8 132.1 127.5 112.1 135.2 131.8 120.4 137.7 173.1 141.3 132.7 123.7 128.0 133.6 119.9 142.2 187.2 145.2 123.3 129.1 140.2 135.0 124.4 148.0 198.4 155.2 127.0 133.2 147.3 134.6 120.3 144.0 221.0 158.2 127.0 137.2 152.9 134.8 122.3 149.0 231.7 149.6 132.0 144.2 152.3 ( 4) 127.5 149.9 251.9 150.3 ( 4) 150.9 -0.4 ( 4) 4.2 0.5 8.7 0.5 ( 4) 4.6 3.4 50.5 0.9 1.5 7.8 1.2 50.2 4.0 2911 3011 314 3221 3241 325 3251,53, 59 3251 3253 3255 3271,72 3273 Petroleum refining..................................................... Tires and inner tu b e s ................................................. Footwear .................................................................. Glass containers....................................................... Hydraulic cement ..................................................... Structural clay products............................................ Clay construction products........................................ Brick and structural clay t i l e ...................................... Ceramic wall and floor tile ........................................ Clay refractories ....................................................... Concrete products..................................................... Ready-mixed concrete.............................................. 132.4 116.7 102.0 112.9 129.7 131.7 133.0 128.6 133.5 125.6 115.9 109.0 121.4 116.3 100.3 121.6 119.0 134.6 130.7 132.3 128.1 143.9 116.4 105.7 123.7 115.7 104.8 120.9 110.6 132.0 132.2 133.7 131.8 127.6 113.3 102.7 128.3 127.6 105.5 121.2 120.7 138.3 140.2 147.2 131.6 130.3 116.3 104.0 136.8 130.0 103.3 124.0 131.6 146.1 149.2 144.5 149.9 134.1 120.5 105.3 138.2 139.9 106.0 125.8 132.4 145.9 • 148.1 134.4 n 136.3 120.1 108.7 135.1 143.9 107.1 127.1 128.5 147.8 148.2 130.0 ( 4) 142.7 ( 4) ( 4) -2.2 2.9 1.1 1.1 -2.9 1.3 0.1 -3.3 ( 4) 4.7 ( 4) ( 4) 2.7 4.8 1.0 1.1 2.9 2.4 3.0 -0.3 64.8 0.5 51.3 50.8 331 3321 3324, 25 3331,32, 33 3331 3334 3351 3353, 54, 55 Steel ......................................................................... Gray iron foundries ................................................... Steel foundries .......................................................... Primary copper, lead, and z in c ................................. Primary co p p e r.......................................................... Primary aluminum ..................................................... Copper rolling and drawing ...................................... Aluminum rolling and drawing................................... 123.5 124.2 107.6 140.6 129.6 111.1 117.7 154.7 123.5 128.0 118.5 127.6 116.1 122.8 106.3 157.9 107.6 126.7 113.6 126.4 118.7 105.8 94.7 142.5 114.5 125.6 111.5 142.7 136.3 110.8 105.4 166.0 115.6 130.4 105.9 148.6 143.7 108.8 120.7 163.7 125.7 134.0 103.4 143.9 143.4 108.4 117.1 168.7 124.0 133.0 101.6 149.2 146.4 112.0 121.4 161.7 -1.3 -0.8 -1.7 3.7 2.1 3.3 3.7 -4.2 1.4 1.1 -3.1 3.5 5.2 -1.1 4.2 1.8 3411 3441 Metal cans ................................................................ Fabricated structural m etal........................................ 109.2 116.5 113.3 109.7 116.0 99.4 124.6 100.3 131.7 100.8 136.1 101.8 ( 4) 107.8 ( 4) 6.0 55.1 ( 7) 3531 3562 Construction machinery ............................................ Ball and roller bearings ............................................ 113.2 119.4 119.9 121.1 111.6 113.4 113.4 115.3 117.1 116.8 120.1 122.6 119.7 120.6 -0.3 -1 .6 0.7 0.7 3621 3631,32, 33, 39 3631 Motors and generators............................................... Major household appliances...................................... Household cooking equipment ................................. 115.4 135.1 134.9 114.8 134.9 138.4 106.7 140.7 152.8 109.9 145.2 156.1 114.3 149.8 153.6 113.1 150.5 152.8 117.3 155.0 142.0 3.6 3.0 -7.1 0.9 2.7 0.3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 59 MONTHLY LABOR REVIEW April 1981 • Productivity Reports Table 1. Continued— Indexes of output per employee hour in selected industries Industry 1973 1974 1975 1976 1977 1978 19792 Percent change 1978 79 Average annual percent change 1974-79 3632 3633 3639 3641 3645, 46, 47, 48 3651 Household refrigerators and freezers ...................... Household laundry equipment ................................. Household appliances n.e.c........................................ Electric la m p s ............................................................ Lighting fixtures.......................................................... Radio and television receiving sets .......................... 141.3 131.5 126.7 104.0 126.0 128.7 143.1 126.0 125.9 104.5 120.8 124.4 139.9 138.5 132.9 113.3 118.9 125.7 139.6 145.9 140.3 121.9 126.6 137.3 148.4 147.4 151.2 119.6 132.5 132.9 145.5 152.8 156.0 123.2 132.9 146.4 170.2 153.3 149.2 127.9 17.0 0.3 -4.4 3.8 150.7 ( 4) 2.9 3.0 3.7 4.1 3.6 5 3.0 4.0 371 Motor vehicles and equipment ................................. 123.9 118.8 127.1 136.0 145.1 144.0 138.7 -3.7 3.5 SIC C ode1 n Other 401 401 4111,31,414 4213 PT 4213 PT 4511 Railroads, revenue tra ffic .......................................... Railroads, car-miles................................................... Bus carriers, class I ................................................... Intercity trucking8 ..................................................... Intercity trucking (general freight)8 ........................... Air transportation8 ..................................................... 133.2 119.2 92.5 123.4 122.1 131.3 129.6 116.2 95.9 119.3 124.3 133.0 123.9 115.5 84.5 114.1 117.6 134.6 131.9 117.5 81.7 128.2 127.9 146.7 138.4 117.5 87.1 127.9 133.2 153.6 148.6 124.0 86.8 127.6 131.3 167.9 148.5 122.6 87.2 126.1 128.7 173.6 -0.1 -1.1 0.4 -1.2 -2.0 3.4 3.7 1.4 -0.9 1.8 1.6 6.0 4612, 13 4811 491,92, 93 491,493 PT 492, 493 PT Petroleum pipelines................................................... Telephone communications ...................................... Gas and electric utilities............................................ Electric utilities .......................................................... Gas utilities................................................................ 150.4 128.8 129.9 135.8 117.9 146.6 137.3 127.5 133.7 115.1 147.4 149.6 131.9 141.4 114.4 146.6 165.8 135.8 146.2 116.9 154.0 175.9 137.8 152.2 112.9 156.7 187.6 136.2 148.0 114.6 160.2 194.3 135.5 147.3 114.5 2.2 3.6 -0.5 -0.4 -0.1 1.9 7.3 1.2 1.9 -0.2 54 5511 5541 58 591 7011 721 Retail food stores9 ................................................... Franchised new car dea lers...................................... Gasoline service stations9 ........................................ Eating and drinking places9 ...................................... Drug stores9 .............................................................. Hotels and motels9 ................................................... Laundry and cleaning services9 ............................... 108.1 119.2 136.6 105.9 146.2 108.7 104.0 104.5 116.2 140.5 100.8 149.4 103.2 103.9 104.8 120.5 137.8 102.0 144.8 101.9 103.0 107.0 126.9 151.8 101.8 150.6 106.9 104.5 106.4 131.2 160.9 98.9 156.7 106.8 108.0 100.9 128.5 168.3 94.6 152.4 109.1 108.7 100.2 122.5 169.4 89.5 153.6 102.8 101.8 -0.8 -4.7 0.6 -5.5 0.8 -5.8 -6.3 -0.9 1.4 4.7 -2.4 1.0 0.5 0.3 1As defined in the 1972 Standard Industrial Classification Manual, published by the Office of Management and Budget. 2 Preliminary. 3 Mining data refer to output per production worker hour. 4 Not available. 5 Rate of change is for 1974-78. 6 Rate of change is for 1974-77. 7 Less than 0.05 percent. 8 Output per employee. services falling 6.3 percent; hotels and motels, 5.8 per cent; eating and drinking places, 5.5 percent; and new car dealers, 4.7 percent. These industries, except hotels and motels, had output declines in 1979. Productivity fell 0.8 percent in retail food stores; output rose slightly but was offset by a greater rise in hours. On the other hand, productivity increased 0.8 percent in drug stores, based on small gains in output and hours, and grew 0.6 percent in gasoline service stations, as hours declined more steeply than output. Trends, 1974—79 During 1974-79, the wet corn milling industry had the highest rate of productivity increase, growing 9.0 percent from 1974-78 (1979 data are not yet available). This growth is based on substantial output gains and declining employee hours. Demand for high fructose syrup, an important industry product, continued to ex pand during this period and the industry invested in more efficient plant and equipment. The second highest rate of productivity growth during 1974-79 was for synthetic fibers (7.8 percent). Output in this industry was sustained by high domestic and foreign demand while the industry’s cost cutting operations led to a falloff in employee hours. High growth rates were also 60 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 9 Output per hour of all persons. Note: Although the output per employee-hour measures relate output to the hours of all employees engaged in each industry, they do not measure the specific contributions of labor, capital, or any other single factor of production. Rather, they reflect the joint effects of many influences, including new technology, capital investment, the level of output, capacity utilization, energy use, and managerial skills, as well as the skills and efforts of the work force. Some of these measures use a labor input series that is based on hours paid, and some use a labor input series that is based on plant hours. posted by the telephone communications industry, up 7.3 percent; copper mining (recoverable metal), 6.8 per cent; and air transportation, 6.0 percent. In telephone communications, productivity growth has been aided by large increases in output and the continuing use of elec tronic switching equipment for long distance calls. In copper mining (recoverable metal), output grew only slightly; however hours of production workers dropped sharply, in part, because of the closing of inefficient mines. In the air transportation industry, high output growth (because of gains in both passenger travel and freight shipments) coupled with a moderate gain in em ployment resulted in increased productivity. Other in dustries with productivity gains of more than 5 percent per year included hosiery, soft drinks, flour milling, malt beverages, and metal cans. Declining productivity rates were experienced by a number of industries over the 1974-79 period. The blended and prepared flour industry (cake mixes, among other products) posted the largest decline, fall ing at a 6.4-percent rate. Steel foundries dropped 3.1 percent, coal mining fell 2.5 percent, and eating and drinking places declined 2.4 percent. Smaller declines were experienced by primary aluminum, —1.1 percent; bus carriers and retail food stores, —0.9 percent each; brick and structural clay tile, —0.3 percent; and gas utilities, —0.2 percent. A full report, Productivity Measures for Selected In dustries, 1954-1979, Bulletin 2093, is available from the Superintendent of Documents, U.S. Government Print ing Office, Washington, D.C. 20402. □ FOOTNOTE ' For a detailed report on these industries, ly L a b o r R e v ie w articles: Horst Brand and see the following M o n th Clyde Huffstutler, “The paper and plastic bag industry: two distinct productivity phases,” May 1980, pp. 26-30; Phyllis Flohr Otto, “Productivity growth below average in fabricated structural metals,” June 1980, pp. 27-31; John Duke “Construction machinery industry posts slow rise in pro- ductivity,” July 1980, pp. 33-36; Brian L. Friedman, “Productivity gains in the drugstore industry, 1958-79,” November 1980, pp. 1822; and James D. York and Elmer S. Persigehl, “Productivity trends in the ball and roller bearing industry,” January 1981, pp. 40-43. Productivity trends for Class I bus carriers will be discussed in a forthcoming article. Erratum In “Husbands and wives as earners: an analysis of family data,” by Howard Hayghe (Monthly Labor Review, February 1981), the labels in the legend on chart 1 were inadvertently transposed. A corrected version of the chart appears below. Chart 1. Distribution of dual-earner and traditional-earner families by family income quintiles, 1978 Percent 40 D u a l-earner fa m ilie s T ra d itio n a l-e a rn e r fa m ilie s 30 20 10 Lowest 0-$8,720 Second $8,721-14,700 Third $14,701-20,600 Fourth $20,601-28,632 Highest $28,633 and over Quintiles NOTE: “ Dual-earner families” refers to married couples where both husband and wife were earners at sometime during the year. A “ traditional-earner family" is one where the husband, but not the wife, was an earner. In both types of families other members may also be earners and there may not be children under age 18. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 61 Research Summaries Migration of the unemployed: a relocation assistance program C harles F. M ueller Would the unemployed be more willing to relocate to jobs if provided with information, support from other people, and cash for moving expenses? Relocation rates were greater for unemployed persons enrolled in a Fed eral Job Search and Relocation Assistance program than they were for a comparable group of unemployed persons with “potential” for relocation, but who relied on friends and relatives for support. Further, the pro gram’s results indicate that among the unemployed, the young, black persons, men, and persons with lower edu cational levels are more willing than others to relocate in search for work. The Job Search and Relocation Assistance program provides financial and other assistance to Employment Service registrants who are willing to relocate in order to find employment for which they are qualified by rea son of training and experience. The program, adminis tered by the Employment and Training Administration of the U.S. Department of Labor, began in April 1976, shortly after the 1973-75 recession. It is a mobility as sistance program for the unemployed.1 The Employment and Training Administration’s net work of local Employment Service offices provides the administrative framework for the program. Forty select ed offices in Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, and Ten nessee initially provided one of three different levels of assistance. Level 1 offices provided information on outof-area jobs and long-distance telephone referral service. Level 2 offices provided level 1 services and job search grants (funds for reasonable travel expenses incurred in visits for interviews). Level 3 offices provided level 1 and level 2 services and relocation grants (funds for travel and moving to the location of the new job). By 1980, 18 offices remained in operation, all provid ing level 3 services. Charles F. Mueller is an economist at the Planning Economics Group, Boston, and formerly at the Brookings Institution. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis a Employment Service registrants were initially screened according to unemployment or underemployment sta tus, regardless of the duration and reason for the status, and for their response to a question about “willingness to relocate” on the standard Employment Service regis tration form.2 Those not indicating willingness to relo cate were not informed of any of the Job Search and Relocation Assistance program services. Enrollments also partly depended on the judgments of the Employ ment Service staff who, intentionally or otherwise, try to maximize the number of relocatees for their effort. Thus, Employment Service registrants are likely to be further screened by local staff on whether they are “good prospects” for relocation. An examination of the characteristics of Job Search and Relocation Assistance enrollees and relocatees sug gests that there is screening by local staff. Further, the screening appears to have been counterproductive in that persons with the highest enrollment rates have the lowest relocation rates. This is most apparent when considering education and occupation. (See table 1.) The Job Search and Relocation ratio (a group’s share in total relocatees relative to its share in total enrollees) is much higher for persons with 12 or fewer years of edu cation, than for those with more. And the ratio is much lower for professionals and managers than for craftworkers and operatives. It seems that more relocatibns would have been made if more enrollees had not more than 12 years of education, or were operatives or craftworkers. The program’s ultimate success is yet to be deter mined, as data collection and program evaluation con tinue. No cost-benefit assessment is attempted here. Nonetheless, some rough judgments of its performance to date can be made. Although program enrollees and comparison group members (Employment Service regis trants in selected offices where no relocation assistance was offered) have similar characteristics, mobility was much greater for enrollees, as table 1 indicates. This was especially the case for the young, black persons, men, and persons with lower levels of education. The upgrading of services to level 3 led to greater in creases in Job Search and Relocation Assistance activi ties than did upgrading services from level 1 to level 2. And, except for high-volume level 3 offices, the perfor mance of level 2 and level 3 offices was similar in terms of relocation rates and relocations per office-month. Further, the labor market results, employment and wages for the relocatees, tended to be superior to those for both nonmovers and other movers. Indeed, the aver age wage for relocatees was $5.84 per hour, and the full-time employment rate was 82.6 percent, despite that 38 percent of the relocatees went to a single employer, Ingalls Shipyard in Pascagoula, Miss., where the aver age hourly wage was $4.46 and the employment rate 73.4 percent. Cost per relocation was lower in the program’s sec ond year of operation than in the first, although it in Table 1. Characteristics of and relocation rates for Job Search and Relocation Assistance participants, and migration rates for comparison group members, September 1979 J o b S e a rc h C h a r a c t e r is t ic s E n r o lle e s R e lo c a t e e s R e lo c a t io n and r a te R e lo c a t io n r a tio Total .......................... M ig r a t io n ra te 2 1 5068 1345 27 12 M a le ............... Fem ale........... 85 15 90 10 28 18 1.06 .67 12 12 Years of education: Less than 1 2 . . 12 y e a rs ......... More than 12 .. 15 26 59 27 34 38 48 35 17 1.80 1.31 .64 12 10 14 Race: White ............. Black ............. Other ............. 72 26 1 66 32 1 24 33 19 .92 1.23 1.00 17 4 22 Welfare: Yes ............... No .................. 2 98 2 98 31 27 1.17 1.00 ( 2) ( 2) Previous migrant: Yes ............... No .................. 2 98 * 99 20 27 .75 1.01 ( 2) ( 2) Marital status: M arried........... Not married . . . 44 45 47 47 28 28 1.07 1.04 16 10 33 39 39 31 27 20 20 21 1.18 1.03 .80 11 15 15 12 9 14 11 18 19 46 37 27 45 75 45 41 16 38 38 .53 .42 .60 1.00 1.78 1.33 1.03 1.71 283 1.75 1.56 .60 1.41 1.45 Percent Sex: Age: 17 to 24 25 to 34 35 to 40 41 to 50 Over 50 ......... ......... ......... ......... ......... Occupation: Professional .. Managerial . . . C lerical........... Sales ............. Craftworkers .. Operatives . . . Farmers ......... Farm labor . . . Mining labor . . Other labor .. . Food............... Personal......... Protective . . . . Building........... 38 10 13 6 38 12 8 10 5 20 5 5 3 2 2 23 6 ( 3) ( 3) ( 3) 41 8 1 1 1 ( 3) 8 ( 3) ( 3) ( 3) 14 1 ( 3) 2 ( 3) .77 .83 16 7 Characteristics of migrants The migratory behavior of unemployed persons was explored using data from the National Longitudinal Survey, a historical profile of four age-sex cohorts be ginning in 1966. Because enrollees in Job Search and Relocation Assistance were predominantly young men, the study was of data from the National Longitudinal Survey cohort of men age 14 to 24 in 1966, numbering 5,225. Unemployed persons, those without a job but looking for work or with a job but on indefinite layoff in the 1970 survey week, were considered “potentials” for relocation.4 The following is a summary of the expe riences of migrants. 9 8 15 1Job Search and Relocation ratio is the percent of relocatees relative to the percent of enrollees. 2 Data were not available by welfare status and previous migrant status for comparison group members. 3 Less than .5 percent. S ource : JSRA Third A n a lytica l Report, Washington, D.C., (U.S. Department of Labor, Em ployment and Training Administration, 1980), appendix and table 5-1. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis creased during the third year. Perhaps a more efficient handling of job search efforts by Employment Service staff was responsible for the second-year decrease. Lax monitoring of non-program staff activities that were re munerated by the program may have contributed to the third-year increase. As might be expected, the cost per enrollee was higher for level 3 offices (except for the high-volume ones) than for level 2 offices. The cost per relocatee was also higher for level 3 offices, by about 75 percent. Regardless, scale economies seemed to charac terize level 3 services, in that the cost per relocatee was only half that for level 2 offices in the two high-volume level 3 offices. Overall, the program seemed to have an impact on mobility, and its performance apparently has improved during its operation. Nonetheless, its operation raised questions. Was the response to the “willingness to relo cate” question on the Employment Service registration form an appropriate screening device? Should Employ ment Service staff, as a policy, have directed their en rollment efforts away from professionals and managers, toward craftworkers and operatives? What role did job search through friends and relatives have compared to other methods, such as consulting Employment Service listings of job openings?3 Did Job Search and Reloca tion Assistance merely assist moves that would other wise successfully have occurred? To shed light on these and other questions on the mobility of job seekers, mi gratory experiences of the unemployed were analyzed, using data different from that of the Job Search and Re location Assistance program. Selectivity. Migrants tended to be on welfare rolls less than nonmigrants. None of the unemployed migrants and only 6 percent of all migrants received public assis tance or welfare; 14 percent of the unemployed non migrants received some public assistance or welfare. The migration rate of unemployed professionals was substantially greater than that for unemployed craftworkers and operatives. Surprisingly, unemployed migrants whose economic situation had worsened were no more prone to migrate 63 MONTHLY LABOR REVIEW April 1981 • Research Summaries than those experiencing an improvement. Nonetheless, migrants appeared to move from areas of poor econom ic opportunity. About half the migrants in both the un employed group and the total group originated in labor market areas with low indexes of labor demand. Willingness to relocate. The attitudinal variable of whether a person was willing to relocate did not seem to be a bellwether of migration. More than half of all movers indicated unwillingness to relocate. Even those whose financial position had worsened were unwilling. Migrant craftworkers and operatives, who had lower migration rates than professionals and managers, were much more likely to indicate willingness than migrant professionals and managers. Having a job lined up. The risks of moving were certain ly tied to whether a migrant had both a job lined up before moving and friends and relatives at the destina tion. Unemployed migrants seemingly took greater risks than other migrants—half of the unemployed did not have a job lined up before they moved, compared with 38 percent of all migrants. About half the migrants moved to areas where there were friends or relatives. And migrants without job prospects tended to move to areas where there were friends or relatives. Migrants without job prospects seemed to move to satisfactory destinations. About half of both unem ployed and other migrants found work in less than 2 weeks. An additional 20 percent found work in 2 to 4 weeks, and approximately 90 percent were working within 3 months. Unemployed migrants without job prospects tended to find work in less time after the move than they spent looking for work before the move. Overall, migrants without job prospects tended to move further than those with a job lined up. Motive. Economic incentives played a large role in the migration of the unemployed, 56 percent compared with 38 percent of all migrants. Perhaps because unemployed migrants tended, more so than other migrants, to tie moving to expectations of landing a job rather than to more certain concerns such as the presence of family, their evaluations of the moves were less favorable. Only 6 percent of all migrants felt that the move was a bad idea, but about one-third of the unemployed migrants felt as such. Implications for program’s future Based on the information on the willingness of unem ployed persons to migrate, it seems that Job Search and Relocation Assistance policy of restricting enrollment to persons willing to relocate may be overly exclusionary. More than half of the migrants who responded to an at titudinal question on mobility indicated unwillingness. Additionally, it seems prudent not to encourage the en rollment of craftworkers at the expense of enrolling pro fessionals and managers. Although the relocation rates of craftworkers and operatives were higher, their migra tion rate was less than that of professionals. Also, be cause friends and relatives at the destination are an important factor in the migration of those unemployed and without a job lined up, the program should contin ue to encourage the use of such contacts in placing relocatees. The above observations suggest that unemployed migrants relocate more than other migrants in response to their economic circumstances, and that they take risks when doing so. And the risks associated with long-distance movement and not having a job waiting are greater for unemployed migrants than for others. To allay these risks, unemployed migrants rely upon the support mechanisms provided by friends and relatives. However, as might be expected when decisions are more risky and outcomes more variant, unemployed migrants, more than others, view their moves as disappointments. Overall, the disappointing moves made by unem ployed migrants point to the potential usefulness of a national program like Job Search and Relocation Assis tance, which could reduce the risks of moving for the unemployed by providing the certainty of having a job already waiting. The result would likely be more in formed choices and fewer disappointments than at pres ent. □ FOOTNOTES ' Job Search and Relocation Assistance is only the most recent of several mobility demonstration projects. For example, the Mississippi Labor Mobility Project moved nearly 2,500 individuals and their fam ilies during the late 1960’s. See, Cilia J. Reesman and David R. Zimmerman, “Worker Relocation 1965-72: A Review of the Research and Operations Findings of MDTA Experimental and Demonstration Projects,” (Springfield, Va. National Technical Information Service, 1975.) : Initially, the registrant needed to have been laid-off and not work ing for at least 30 days. These conditions were deemed to be too re strictive by project staff and were relaxed. 'Two employment service listings, Job Bank Openings Summary 64 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (JBOS) and Job Bank Frequently Listed Openings (JOB-FLO), were available to Job Search and Relocation Assistance enrollees. They ap peared to be used less successfully in relocation, than other techniques such as enrollees’ contacts. Because JBOS and JOB-FLO were not successful resources, an on-line Data Retrieval System (DRS) was established for Job Search and Relocation Assistance purposes. Though DRS has improved the quality of job listings, its usefulness in providing job openings to relocatees is yet to be assessed. 4 Using our characterization of unemployed-employed, the unem ployment rate in the sample was 3 percent during 1970; whereas the national average was 4.9 percent. Alternative characterizations of un employment were explored and yielded roughly the same sample rate. M ajor Agreements Expiring Next M onth T h is lis t o f c o lle c t iv e b a r g a in in g a g r e e m e n ts e x p ir in g in M a y is b a s e d o n c o n tr a c ts o n f ile in th e B u r e a u ’s O f f ic e o f W a g e s an d I n d u s tr ia l R e la tio n s . T h e lis t in c lu d e s a g r e e m e n ts c o v e r in g 1 ,0 0 0 w o r k e r s or m o r e . E m p lo y e r a n d lo c a t i o n In d u stry U n io n 1 N u m b er of w orkers Allied Construction Employers Association, Inc. (W isc o n sin )..................... Alterman Foods, Inc. ( I n te r s ta te ) ......................................................................... American Hoist & Derrick Co. (St. Paul, M in n .).............................................. A nthracite O perators (P en n sy lv an ia)................................................................... Associated General C ontractors of America, Inc.: Colorado Chapter . . . . Rhode Island C h a p t e r ......................................................................................... Western Central Area Chapter (W ash in g to n )................................................ Wisconsin Chapter .............................................................................................. Association of Telephone Answering Services, Inc. (New York, N.Y.) . . . Associated Brick Mason Contractors of Greater New York (New York, N.Y.) Associated Mechanical Contractors of Chattanooga, Inc. (Interstate) . . . . C o n stru ctio n ................................ Retail trade ................................ Machinery ................................... M in in g ........................................... C o n stru ctio n ................................ C o n stru ctio n ................................ C o n stru ctio n ................................ C o n stru ctio n ................................ Services ........................................ C o n stru ctio n ................................ Iron Workers ........................................... Food and Commercial W o r k e r s ........... Machinists ................................................ Mine Workers ( I n d .) ................................ L a b o re rs ...................................................... Carpenters ................................................ Carpenters ................................................ Operating E n g in e e rs................................ Retail, Wholesale and Department Store Bricklayers ................................................ C o n stru ctio n ................................ Plumbers ................................................... 1,200 Brewery Proprietors of Milwaukee, Miller-Pabst-Schlitz (Wisconsin) . . . . Building Construction Agreement (Colorado)- ................................................ Food products ........................... C o n stru ctio n ................................ Brewery Workers (D .A .L .U .)................ Teamsters (Ind.) ...................................... 3,500 1,900 Colonial Stores, Inc. (I n te rs ta te )........................................................................... Colorado Contractors Association, Inc.................................................................. Construction Employers Labor Relations Association (New York, N.Y.) . Construction Industry Employers Association, 3 Agreements (New York) Construction Employers of the Hudson Valley, Inc., and 1 other (New York) Crown Zellerbach Corporation (Camas, Wash.) .............................................. Cummins Engine Co., Inc. (Columbus, Ind.) ................................................... Retail trade ................................ C o n stru ctio n ................................ C o n stru ctio n ................................ C o n stru ctio n ................................ C o n stru ctio n ................................ Food and Commercial W o r k e r s ........... L a b o re rs ...................................................... Carpenters ................................................ Laborers; Carpenters; and Iron Workers Carpenters ................................................ 2,200 1,200 1,800 3,700 1,500 P a p e r .............................................. Machinery ................................... Western Pulp and Paperworkers (Ind.) Diesel Workers ( I n d . ) ............................. 2,250 6,700 Dow Chemical Co., Texas Division (Texas) ...................................................... C h em icals..................................... Operating E n g in e e rs................................ 2,050 Erwin Mills (D urham, N.C.) ................................................................................. Textiles ........................................ Textile W o rk e rs ........................................ 1,200 General Building Contractors Association, Inc. (Pennsylvania) ................... General Telephone Co. of Northwest-W est Coast Telephone of California . Great Western Sugar Co. (In te rsta te )................................................................... Greater New York Association of Meat and Poultry Dealers, Inc., and 1 other (New York) C o n stru ctio n ................................ C om m unication........................... Food products ........................... Wholesale t r a d e ........................... Carpenters ................................................ Electrical Workers (IBEW) ................... Teamsters (Ind.) ...................................... Food and Commercial Workers ........... 7,000 3,800 3,500 2,600 Hercules, Inc. (Hopewell, Va.) .............................................................................. Hinky-Dinky Supermarkets, Inc. (Omaha, Nebr.) ........................................... Howmet Corp., Misco Division and 3 others (Muskegon County, Mich.) . C hem icals...................................... Retail trade ................................ Transportation equipment . . . . Mine Workers (I n d .) ................................ Food and Commercial W o r k e r s ........... Auto Workers ( I n d .) ................................ 1,000 2,000 2,000 Independent Employers-Mason Tenders of Greater New York (New York, N .Y .)2 Independent Non-Association Restaurant Employers (Seattle, W ash.)2 . . . Industrial Launderers, Cleaners Association and Linen Companies (M ichigan)2 Illinois Regional Insulation C ontractors Association ...................................... C o n stru ctio n ................................ L a b o re rs ...................................................... 5,000 Restaurants ................................ Services ........................................ 2,500 1,700 C o n stru ctio n ................................ Hotel and Restaurant Employees . . . . Laundry, Dry Cleaning and Dye House Workers Asbestos Workers ................................... Kroger Co., A tlanta Division (Georgia, Tennessee, and A la b a m a ) ............. Retail trade Food and Commercial W o r k e r s ........... 2,800 Longview Fibre Co. (Longview, W a s h .) .............................................................. P a p e r .............................................. Western Pulp and Paperworkers (Ind.) 1,550 M ARBA of Chicago & Vicinity, 3 other Associations (Illin o is )................... Martin M arietta Aluminum, Inc. (Torrance, C a l if .) ........................................ McDonnell Douglas Corp. (Missduri) ................................................................ Metro Association of Plumbing-Heating-Cooling Constractors (Minnesota) Munsingwear, Inc. (I n te r s ta te ) .............................................................................. See footnotes at end of table. C o n stru ctio n ................................ Primary metals ........................... Transportation equipment . . . . C o n stru ctio n ................................ Textiles ........................................ Laborers; and Carpenters ..................... Steelworkers .............................................. Machinists ................................................ Plumbers ................................................... Clothing and Textile Workers ............. 11,000 1,350 9,300 1,200 1,200 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ................................ 1,250 2,450 1,200 2,000 4,500 7,700 11,500 1,050 1,200 2,500 1,000 1,100 MONTHLY LABOR REVIEW April 1981 • Major Agreements Expiring Next Month Continued— Major Agreements Expiring Next Month E m p lo y e r an d lo c a tio n In d u stry N u m ber of U n io n 1 w orkers National Tea Co., Standard Grocery Division (Illin o is)................................... National Electrical C ontractors Association, 2 Agreements (Interstate) . . . Nestle Co., Inc. (Fulton N.Y.) ........................................................................... Retail t r a d e ................................... C o n stru c tio n ................................ Food p ro d u c ts .............................. Food and Commercial Workers ........... Electrical Workers (IBEW) ................... Retail, Wholesale and Department Store 1,100 7,300 1,100 Owens-Corning Fiberglas Corp. (Newark, Ohio) .............................................. Stone, clay, and glass products . Glass Bottle B lo w ers ................................ 2,050 Panhandle Eastern Pipe Line Co. (Interstate) ................................................... Plumbing & Heating C ontractors Association of Lake-McHenry, and others (Illinois) PPG Industries, Inc., Chemical Division (Lake Charles, L a . ) ........................ Printing Industries of Northern California ......................................................... Stone, clay, and glass products . Oil, Chemical and Atomic Workers . . . C o n stru c tio n ................................ 1,400 3,650 C h e m ic a ls...................................... Printing and p u b lish in g ............. M ac h in ists................................................... G raphic A r t s .............................................. 1,250 1,200 Restaurant Association of the State of W ashington, King County Chapter (King County, Wash.) Roofing & Sheet Metal Contractors Association (Pennsylvania and New Jersey) R e s ta u ra n ts ................................... Hotel and Restaurant Employees .... 1,500 C o n s tru c tio n ................................ Sheet Metal W o rk e rs ................................ 1,500 P a p e r .............................................. Western Pulp and Paperworkers (Ind.) . R e s ta u ra n ts ................................... Hotel and Restaurant Employees Tecumseh Products Co., Tecumseh Division (M ic h ig a n )................................ M achinery...................................... 1,900 Toledo Edison Co. (Toledo, O h io ) ......................................................................... Utilities ........................................ Tecumseh Products W orkers of Tecumseh, Michigan (Ind.) Electrical Workers (IBEW) ................... U nderground Contractors Association (I n te r s ta te )........................................... C o n s tru c tio n ................................ L a b o r e r s ...................................................... 1,600 Ventilating and Air Conditioning C ontractors Association of Chicago (Illinois) C o n s tru c tio n ................................ Sheet Metal W o rk e rs ................................ 5,300 Wholesale Bakers Group, Machine Shop (California) ...................................... Food p ro d u c ts .............................. 1,650 Wisconsin Association of Public W orks Contractors, and 1 other (Wisconsin) C o n s tru c tio n ................................ Bakery, Confectionery, and Tobacco Workers L a b o r e r s ...................................................... S. D. Warren Co., Division of Scott Paper Co. (Westbrook, M a in e ) ........... Scott Paper Co., Packaged Products Division (Everett, W a s h .)...................... Seattle Department Stores Association Inc. (W a sh in g to n ).............................. Seattle Restaurant Association and Seattle Hotel Association (Washington) SM ACNA M etropolitan Detroit Chapter (M ic h ig a n )...................................... 1Affiliated with A FL -C IO except where noted as independent (Ind.). -Industry area (group of companies signing same contract). 66 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis .... 1 ?00 1,250 i son 5,000 1 800 1,050 2,000 Developments in Industrial Relations AFL-CIO offers plan to aid economy The major item of business at the AFL-CIO Executive Council’s winter meeting was the adoption of a plan for countering inflation and unemployment. The Council contended that the plan could attain the goals through “true equality of sacrifice” by all Americans. According to thé Council, President’s Reagan’s proposals for stabi lizing the economy, which center on cuts in Federal tax es, spending, and regulatory controls, would require “more sacrifice from those who have little” and would primarily benefit wealthy corporations and individuals. The Executive Council’s plan called for— • • • • • • An income tax rebate equal to 20 percent of a work er’s share of social security contributions and 5 per cent of the employer’s share. Selective tax reductions to aid industries hardhit by economic conditions. Continuation of “basic income-support programs for the unemployed, the poor, and the elderly.” A reduction in inflation through credit controls, spe cific steps to hold down energy price increases, and government measures to make housing more afford able. Public sector jobs for adult and youth workers to provide new skills and increase employment oppor tunities. A study of investment tax credits for business to as sure the best possible results. In other resolutions, the Executive Council called for indexing the Federal minimum wage by keeping it at a constant percentage of average hourly earnings in man ufacturing; for adoption of trade policies including im mediate import relief for domestic automobile manu facturers and their parts suppliers; and for revamping of marketing agreements and import restraints in other in dustries. The Executive Council also established a com mittee to seek ways to give stronger support to political candidates favored by organized labor. Container contracts feature ‘justice on the job’ About 20,000 workers were covered by a settlement between the Steelworkers and four major can companies “Developments in Industrial Relations” is prepared by George Ruben and other members of the staff of the Division of Trends in Employee Compensation, Bureau of Labor Statistics, and is largely based on in formation from secondary sources. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis that, reportedly, will set a pattern for settlements with other container companies. The contracts contain a “justice and dignity on the job” clause described by the union as a first in any of its contracts. This clause re quires the employer to keep an employee on the payroll until the final resolution of any grievance challenging a dismissal or suspension action. According to the union, the wage and benefit provisions of the new contracts are comparable to those in its 1980 settlements with basic steel, aluminum, and copper companies. (See Monthly Labor Review, November 1980, p. 51; August 1980, pp. 49-50; and June 1980, pp. 55-56.) The 3-year accord with American Can Co., Continen tal Can Co., National Can Corp., and Crown Cork & Seal Co., Inc., provided for an initial wage increase ranging from 25 cents for employees in the lowest pay grade to 49 cents for those in the highest grade. In March 1982, the workers will receive a 20- to 44-cent increase, followed by a 15- to 27-cent increase a year later. Combined, the three increases average 87.5 cents. The cost-of-living clause was retained without change. It provides for quarterly adjustments of 1 cent an hour for each 0.3-point movement in the BLS Consumer Price Index for Urban Wage Earners and Clerical Workers (1967=100). Pensions for future retirees were increased, in steps, by a total of $4 a month for each year of credited ser vice, bringing the range to $17.50-$21.50 (varying ac cording to pre-retirement pay rates). Pensions also were increased for current retirees, ranging from a 70-percent increase ($140-$ 145 a month) for those who retired pri or to 1964 to 8 percent for those who retired just before the effective date of the new contract. Other provisions included a $59- to $71-a-week in crease in sickness and accident benefits over the con tract term and improvements in insurance benefits. Two western coal producers settle The United Mine Workers settled with two bituminous coal mine operators for Western operations, but there was no indication of how much the 3-year ac cords might influence the bargaining between the union and the Bituminous Coal Operators Association (BCOA) for 120,000 Eastern miners. An official of a major coal producer said the Western settlements were “bound to have an impact” on the BCOA talks; however, union president Sam Church said that the settlements will have “nothing to do with the Eastern talks.” The first settlement, which covered about 350 em ployees of Pittsburgh & Midway Coal Mining Co. in 67 MONTHLY LABOR REVIEW April 1981 • Developments in Industrial Relations Gallup, N. Mex., and Steamboat Springs, Colo., set a pattern for an accord with Peabody Coal Co. for 950 workers at 5 mines in Colorado, Arizona, and Mon tana. The Peabody accord was preceded by a 1-month strike. Bargaining was continuing with 10 other West ern operators. The Pittsburgh & Midway agreement provided for a $1.20-an-hour immediate wage increase and for a 65-cent increase in February of 1982 and 1983. The contract did not provide for automatic cost-of-living ad justments linked to the movement of the BLS Consumer Price Index, but the workers will receive six quarterly wage increases (the first in February 1981) of 18 cents an hour, followed by two quarterly increases of 19 cents. (One of the union’s major demands in the BCOA talks was for restoration of the cost-of-living clause that had been terminated by the 1978 settlement. (See Monthly Labor Review, May 1978, p. 69.) Other terms of the Pittsburgh & Midway agreement, which expires in February 1984, included 30- and 40-cent-an-hour differentials for the night shifts (former ly 25 and 30 cents); two additional paid personal or sick leave days, bringing the total to 7 a year; 14 days of pay (formerly 13) under the basic vacation provision, which continued to provide for 14 consecutive days off, including 10 work days; $185 a year clothing allowance (was $150); a three-step increase in the $150 a week sickness and accident benefit, bringing it to $200 in the third contract year; $25,000 life insurance (was $12,000); a two-step increase in pensions for future re tirees that will bring the benefit to $18 a month for each of the first 10 years of service, $18.50 for each of the next 10 years, $19 for each of the next 10 years, and $19.50 for each year of service in excess of 30 (the pre vious rates were $13.50, $14, $14.50, and $15, respec tively); a flat $25-a-month increase in pensions for current retirees; adoption of the same contributory den tal plan that covers employees of the parent Gulf Oil Corp.; and adoption of the same eye care plan that the union and the BCOA established in 1978. Utility workers end 8-week walkout One of the longest utility strikes in U.S. history end ed when Northern Indiana Public Service Co. and the Steelworkers settled. During the 8-month walkout, the company maintained gas and electric service in the 30-county area by using its 2,000 supervisory employ ees. One of the major issues prolonging the strike was the company’s disciplining of 16 strikers for alleged misconduct. Under the settlement, 11 of the workers will be suspended for 30 to 60 days and the fate of the other five will be decided by binding arbitration. The 40-month contract provided the 4,200 workers with wage increases of 6 percent on February 2, 1981, 68 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5.5 percent on June 1, 1981, 4 percent on June 1, 1982, and 3 percent on June 1, 1983. In addition, the workers received a 37-cent-an-hour immediate cost-of-living ad justment, the 98 cents in adjustments that was accrued under the previous contract (which expired May 31, 1980) was incorporated into base wage rates, and there was provision for continued quarterly adjustments. Pri or to the settlement, the average wage was reportedly $8.95 an hour. Other improvements included a 1- to 5-day increase in paid vacations; $14,000 life insurance (formerly $12,000); $250,000 major medical coverage (formerly $50,000); adoption of company-financed vision and den tal care benefits; and increased pensions for current and future retirees. George Washington’s birthday was added as a paid holiday, but two “personal” holidays were terminated, reducing the total to 11 days a year. The union also agreed to cuts in meal allowances and changes in work rules and overtime pay provisions that will reduce labor costs. Realty Advisory Board, Service Employees settle About 30,000 employees of commercial buildings in New York City were covered by a settlement between the Realty Advisory Board on Labor Relations and the Service Employees union. The 3-year contract provided for general wage increases of $26 a week in January 1981, $27 in January 1982, and $28 in January 1983, and for an additional $2 on each date for employees in certain classifications. The cost-of-living clause, which was continued, provides for possible pay adjustments in January of 1982 and 1983, depending on the movement of the BLS Consumer Price Index for New York CityNortheastern New Jersey. Other terms included an increase in the maximum pension to $300 a month; an increase in life insurance to $8,000; improved dental benefits; establishment of a prescription drug plan; and increased employer contri butions to the union’s training and safety fund. The union said that it won changes in layoff proce dures. The accord covered maintenance workers, security guards, porters, and elevator starters and operators. Montgomery Ward cuts pensions of future retirees Montgomery Ward & Co. announced a reduction in pension rates for future retirees to slow down the cost of its retirement plan. The company said that its annual pension costs had risen 123 percent (to $52.3 million) from 1975 to 1980, compared with a 71.6-percent rise (to $315 million) for all other benefits, including re quired social security contributions. It estimated that the pension changes will cut costs by $20 million in 1981. Under the revisions, which apply to employees retir ing after 1984, annual pensions will be calculated at 2.25 percent of average annual pre-retirement earnings for each year of service after that year. The portion of their pension based on any earlier service will be calcu lated by using the 2.5 percent rate that previously ap plied to all service. Employees retiring after 1984 will also be adversely affected by a change in the provision for offsetting pensions by the amount of primary social benefits. This offset will be reduced by 1.5 percent for each year of credited service, compared with the current 2-percent reduction. In a change favorable to workers, eligibility for nor mal retirement was lowered to age 63, from 65. In keeping with this change, the age at which an employee may enter the plan was reduced to age 21, from 25. There was no change in the employee contribution rate of 3 percent of earnings. Montgomery Ward also made changes in other bene fits for its 40,000 employees. The employee contribution for health insurance was reduced from $10 to $7.50 a month for individual coverage and from $20 to $15 for family coverage. Also, eligibility for 3 weeks of paid va cation was reduced to 5 years of service, from 7. There also were cost reduction developments at a competitor, as Sears, Roebuck & Co. announced that 1,483 of 2,474 mid- and upper-level executives had ac cepted a one-time offer of early retirement. As of Janu ary 1, 1981, employees retiring between the ages of 55 and 62 receive half pay for 3 years and those age 63 re ceive half pay until age 65. At age 65, retirees in both categories will begin to receive their normal pension. Sears officials said that the action, combined with mergers of various operations, will reduce the executive staff by 8 percent and reduce costs by about $125 mil lion a year. Sears also expects the early retirement move to aid its affirmative action plan by creating promotion opportunities. Teamsters locals accept work-rule changes Members of two Teamsters locals reversed their ini tial decision and accepted work-rule changes proposed by Yellow Freight Systems’ St. Louis terminal. The company had threatened to lay off 400 drivers following the first vote, contending that the existing work rules limited productivity. The feature of the settlement was a provision terminating premium pay for scheduled non overtime weekend work. In recent months, a number of organized trucking companies have asked the Teamsters for relief on work https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis rules and pay rates, contending that they are unable to compete with numerous nonunion firms that entered the industry after deregulation. Although a few firms did win relief, the Teamsters turned down an industry re quest for a reopening of their contract on these issues. (See Monthly Labor Review, November 1980, p. 51.) Steps taken to abolish wage-price council In late January, President Reagan carried out a cam paign promise to terminate the authority of the Council on Wage and Price Stability to monitor wage and price movements. In addition to issuing an Executive Order ending the monitoring, the President also moved to abolish the agency by asking Congress to rescind ap propriated operating funds. The council had already severely restricted its activi ties. In September 1980, it said its monitoring of wages and prices had moderated the rate of inflation some what but that the program should be re-evaluated. The council then extended the guidelines for 1 year from the September 30 expiration date, but specified that union and management would be expected to adhere to the standards only until the end of 1980. The council’s annual report assessing the results of its anti-inflation program concluded that the program had been largely thwarted because it had been based on slowing inflation during a period of relatively slack la bor and product markets resulting from “fiscal and monetary restraint— the principal ingredients of any ra tional anti-inflation policy.” However, the expected 1979 slowdown in the economy did not occur, which meant that the agency was faced with controlling “an inflationary surge fueled by excess demand, and a worldwide surge in commodity prices,” a job “it was never intended to perform.” The report also concluded that the program had achieved some success in “pre venting a bad situation from becoming worse.” For ex ample, over the pay standards 2 year lifetime, it had directly reduced pay increases about 1 percentage point and had reduced price increases by a maximum of half a percentage point. But the council conceded that the wage standards had produced a distortion by permit ting workers covered by cost-of-living clauses to receive larger pay increases than those who were not covered. This could negate the beneficial effects of the pay guide lines if the workers not covered by cost-of-living provi sions win catch-up wage increases. The Council on Wage and Price Stability was established in 1974 but assumed responsibility for moni toring formal wage and price guidelines in 1978. □ 69 Book Reviews A history of the forgotten laborers Women at Work: The Transformation of Work and Community in Lowell, Massachusetts, 1826-1860. By Thomas Dublin. New York, Columbia Univer sity Press, 1979, 312 pp. $17.50. Wage-Earning Women: Industrial Work and Family Life in the United States, 1900-1930. By Leslie Wood cock Tentler. New York, Oxford University Press, 1979, 226 pp. $14.95. Now, more married women work outside the home than are full-time housewives. Of even greater social im portance, women are now entering occupations that re quire extensive periods of training and long-term commitment. These apparently dramatic changes have motivated historians to explore the past economic role of women and to seek the causes of these recent trans formations. But for most of American history, the labor force participation rate of white married women has been low. Furthermore, these women have been a small fraction (less than 15 percent in 1900) of the total fe male labor force. The history of female labor in the United States is primarily the saga of young, single women who were predominantly, but not exclusively, “the daughters of the working class” (Tentler, p. 1). They are forgotten laborers, because their working lives were but brief in terludes between their childhood and motherhood. They were not vocal participants in the American labor movement, and their union membership was almost al ways small. But their market work may have altered and strongly influenced their own lives. They may have married later, had fewer children, and been socialized differently from women who did not work. Their in comes may have enabled their own mothers to remain in the household, and their ability to earn may have en hanced their independence within their parents’ homes. Because change did occur, their experiences may help us understand why the female labor force eventually aged, became more educated, and was transformed in a myri ad of related ways. History does repeat itself, and many past generations have also commented on the changing economic role of women. In 1893, Richard T. Ely wrote in a preface to a book on working women that the “importance of this subject . . . cannot well be overestimated. Our age may https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis properly be called the Era of Woman, because every thing which affects her receives consideration quite un known in past centuries.” (Helen Campbell, Women Wage Earners: Their Past, Their Present, and Their Fu ture, Boston, 1893.) A decade and a half later Edith Abbott justified her book, Women in Industry, with the statement that “public opinion in this country has been recently concerned with the increase in gainful employ ment among women.” ( Women in Industry: A Study in American Economic History, New York, D. Appleton and Co., 1910). Just as each generation has recognized that women have always worked, each has highlighted change and sought its origins. It is within this frame work of continual examination and reinterpretation that both Thomas Dublin’s Women at Work, which was awarded the 1980 Bancroft Prize in history, and Leslie Woodcock Tentler’s Wage-Earning Women should be read. Although Tentler argues that the period covered by her book, “the decades between 1900 and 1930” were “a first and critical chapter in the history of modern female industrial employment (p. 3), it is with Dublin’s work that this history more justifiably begins. The ori gins of the sexual segregation of industrial jobs, of the low relative wage of women, and of their weak bargaining position in the labor market are found al most a century before Tentler’s history begins. Unlike Tentler’s study, which focuses on large cities and by im plication “modern” industry, Dublin’s Lowell is an in dustrial town, not a city with industry. The America of his study was predominantly agricultural. Industrial employment was the exception for most male laborers but was, in many localities, the sole paid employment for women and children. Lowell and economically simi lar towns of its day were unique by early 19th century standards. But the composition of their labor force and the types of work that were performed in their industry are historically significant, both as departures from agri cultural employment, the dominant economic activity of the time, and as harbingers of more extensive industrial employment. Women and children were more important as a per centage of total industrial employment in 1840 than they have been at any time thereafter. Furthermore, more than one-third of the young women in the indus trial counties of Massachusetts, particularly in Middle sex, which included Lowell, were employed in man ufacturing, primarily in the cotton, wool, paper, and boot and shoe industries, with the cotton industry employing almost 40 percent of female industrial work ers. Therefore, a detailed social history of female cotton textile workers during the decades preceding the Civil War should reveal much about the origins of paid em ployment for women. Dublin has written a successful history, partly be cause he has used both quantitative sources and impressionistic materials. His work is not an economic or a quantitative history; it is a social history informed by data. Dublin has meticulously traced female employ ment in the Hamilton Co. from the cotton mill records housed in Harvard’s Baker Library and the U.S. Feder al Population Census manuscripts and local censuses for three critical dates— 1836, 1850, and 1860. Al though other economic historians have used the Baker Library records, only Dublin’s work links data on mari tal status, age, residence, and family background to those on earnings and mill experience. Together with a wide variety of other sources, he is able to describe the social impact of industrial employment on the age at first marriage, traditional family life, migration, and on various aspects of socialization. Dublin finds that millhands married later than was customary at that time, thereby raising the issue of the overall effect of industri al employment on the secular increase during the 19th century in the age at first marriage. Young women re sided in boardinghouses (almost 90 percent of those employed by the Hamilton Co. in 1836 did) under strict surveillance, and kin and friendship ties within the boardinghouse were an important part of socialization (the close bonds among the young women were a criti cal factor in the cohesiveness of the labor movement of the 1840’s). Dublin’s descriptions of the strict regula tions governing the social lives of the millhands and their own “unwritten code of moral conduct” are remi niscent of pre-1970 college life for women, although Dublin views them as unique. Regulations were not the only common feature of college and boardinghouse life: many of the women of the Lowell boardinghouses were so educated that they published a literary magazine. Manufacturing employment in the pre-1850 period was commonly viewed (from outside the factory) as wholesome and productive for young women and chil dren. But Lucy Larcom and her compatriots worked 11 to 12 hours per day over 300 days a year, and it was only after the labor unrest which began in the 1840’s that these mills were seen as dark, satanic fortresses. Labor historians will be particularly interested in these detailed sections on the success of early collective action and its eventual demise with the influx of Irish workers. Dublin’s book is not merely a social history of work ing women, it also deals with the complex forces that led both to the substitution of men and boys for female https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis industrial labor and to the decline in the employment of native-born white females. His data clearly indicate a rapid shift from native-born laborers to immigrants, particularly the Irish, in the late 1840’s. They also show that the employment of boys and men rose, and that the wages for young women plateaued and possibly fell in real terms. Dublin does not adequately analyze the factors causing these labor market changes but instead uses them to lend substance to his social history. Women at Work is refreshing, a fine combination of old and new methods and materials. Dublin has written a dynamic work in terms of both the lives of the indi vidual millhands and the composition of the cotton mill labor force. This study of Lowell, 1826 to 1860, clearly shows that the modern economic role of women has evolved in a complex and noncontinuous fashion over a long period of time. Tentler’s study, like Dublin’s, is a social history—an inquiry into the lives and work of female wage-earners in the early 20th century. By 1900 to 1930, the majority of the American population had become urban, indus try had migrated from towns like Lowell and was con centrated in large cities, and the range of industrial em ployment for women had enlarged. But the fundamental characteristics of the female labor force and the nature of their jobs remained largely unaltered. They were still primarily young, single, and unskilled, and their work was task oriented, sexually segregated, and promised lit tle advancement. Perhaps the most important change during the preceding century was an increase in the nu merical importance of female industrial workers. As the urban population grew, the percentage of young women who worked in industry greatly expanded, and the pos sibility that married women would work in industry in creased as well. Social concern mounted—married working women might deprive their children of care, young women might work in unsafe environments, and women living in large cities apart from their families might become public nuisances. Progressive sentiment and the statistical approach to labor reform begun by Carroll Wright, first when he was Commissioner of La bor in Massachusetts and later when he assumed vari ous Federal posts, combined to produce a spate of studies on female workers. Public agencies at both State and Federal levels, along with private foundations, pro duced hundreds of reports on the condition of workers, based primarily on microlevel surveys of the workers and their families. Tentler rests much of her book on re ports dating from 1900 to 1930, and her bibliography provides a valuable and full account of this literature. Although these reports are based on careful statistical surveys, most of them containing large samples, they are not entirely objective. Each was produced to expose a particular problem, and each was couched in its own rhetoric. Of course, each contains important and reveal71 MONTHLY LABOR REVIEW April 1981 • Book Reviews ing data, but only when interpreted within the proper context. Tender has chosen to use these sources to de scribe the harshness of industrial employment and the poverty of the working class. But her description of working class life during 1900 to 1930 is so grim that by implication, life in 1830, when per capita real income was one-quarter its 1930 value, must certainly have been unbearable. Dublin’s study as well as the research of economic historians do not support such a conclu sion. Despite these biases, Tentler’s analyses of the role of industrial work in socialization, in the sexual division of labor, and in power relationships within the family are sensitive. Tentler suggests that many working daughters had enhanced power in dealing with their parents, “power . . . most often used to gain greater personal freedom during the years preceding marriage’’ (p. 82). The fact that many young women were “On their Own” (the title of ch. V) indicates that an amiable accord was not always struck within the home. The financial inse curity of old age led many parents to depend upon their children to augment family income and such a strategy frequently led to an underinvestment in the education of both boys and girls. (Readers familiar with the work of Michael Anderson, for example, will gain from relat ing these issues to the larger topic of the impact of in dustrialization on the traditional family.) Although these women may have wielded power within their own homes, they were to Tentler, powerless in the labor market. Their “unique subordination” was a product of their brief working lives, reinforced by so cietal norms and discrimination. But working class life was harsh for both men and women and for children of both sexes, and Tentler insufficiently disentangles the problems of sex from the problems of poverty. Elements of change during the period 1900 to 1930 echoed those.described by Dublin for 1830 to 1860. The immigration of unskilled men once again reduced rela tive wages for women; the primary employer had changed—it was the clothing industry instead of the cotton industry— but the economic forces were similar. Technological change had resulted in the continuous flow process, for example, in cigarettes and in food, re moving many of the piecework jobs that women had occupied. But of greater importance were the changes that hinted of an evolution of occupations and of alter ations in social status. Clerical work came of age during the brief period from 1910 to 1920, and the 1920’s were a decade of social change too complex to be neatly summarized. Social and economic commentators of the early 20th century were as struck by their perceptions of a chang ing role for women as we are today with ours. But Tentler’s portrait of wage-earning women during this period is static; the harsh and discriminatory aspects of 72 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis the labor market overpower the subtle clues of the even tual transformation. These two books have much in common. They pose similar questions concerning the role of work in the lives of individual women and their role as a group in labor history. They are also both part of a larger set of works grappling with an issue of current importance— the meaning of recent change in the economic role of women. History warns us to be cautious, and caution is the fundamental message of both books. — C laudia G oldin Associate Professor of Economics University of Pennsylvania Policymaking with a dash of realism Making Foreign Economic Policy. By I. M. Destler. Washington, The Brookings Institution, 1980. 244 pp. I. M. Destler has delivered a detailed analysis of the process of foreign economic policymaking using a “bu reaucratic politics” model. His analytic method, which has long been used in studies of national security issues, sees policy as the resolution of the competition among bureaucratic interests for power and influence. The model, which was adopted by international relations specialists as a reaction to oversimplified analyses that assumed that foreign policy was made by a rational ac tor in the business of maximizing some unitary concept of “national interest,” injects a healthy realism to stud ies of any policy decision. However, in foreign affairs it seems better suited to studies of national security* and defense policy, where nongovernmental actors are rela tively minor influences, than to foreign economic policy where major domestic interest groups (such as orga nized labor) and semiautonomous transnational eco nomic agents (such as multinational corporations) are involved. I would argue that as traditional foreign poli cy analysis benefited from the bureaucratic politics model’s supersedence of the rational actor paradigm, foreign economic policy would benefit from an even more general polycentric model that explicitly takes into account nongovernmental groups. Destler handles this issue by assuming that nongovernmental interests are constituents of one or another of the bureaucracies. By so doing, he has missed an opportunity to complete the generalization of a model of foreign policy analysis, where internal decisionmaking is polycentric and there exist governmental and nongovernmental external ac tors. The extremely high quality of Destler’s exposition more than overshadows any methodological contentions this reviewer might have. The substance of the book is presented in detailed examinations of two major foreign economic issues of the 1970’s, food and trade. The stud ies are comprehensive, desk-by-desk accounts of the policymaking process. Food policy and the officials making it come off in far the worse light. In a word, the food policy process described by Destler was chaotic. In contrast, trade issues, such as the passage of the Trade Act of 1974 and the resulting Multilateral Trade Nego tiations, seem well managed, and trade policy seems or derly and purposive. The reader’s obvious question is, “What made the difference?” My reading led me to two reactions, one suggested by the chapters on food, one by the section on trade. The feature that most struck me about the problems with food policy was the lack of information provided to decisionmakers, both in terms of empirical data and of authoritative technical analysis. In one case studied, the hard data were available but were not used because the agency holding them was in some political disgrace. As a member of the information and data community, I must admit it was gratifying to see a case where our in puts, skills, and professional values could have contrib uted so much. The key to the relative success of trade policy seemed to lie at a much more fundamental level of the governing process. In this case, far more than in the case of food, the policymakers appeared to play a role of mediating competing interests—cajoling, persuading, and educating various interest groups and lobbies until some rough consensus on a fairly coherent national pol icy was formed somewhere near the prescriptive norms of the policymakers. In contrast, food policy seemed to react strongly to whatever interest was closest to the relevant official at the propitious moment. The tendency to attempt to respond to every interest group extant (as in food policy) seemed to be a cause of political chaos, while acknowledging the inevitable disappointment of some parties during consensus building (as in trade pol icy) seemed to yield substantial benefit. — R ich a rd M. D evens , J r . Office of Current Employment Analysis Bureau of Labor Statistics Trade union democracy Governing Trade Unions in Sweden. By Leif Lewin. Cambridge, Mass., Harvard University Press, 1980. 180 pp. $20. In this brief monograph, Leif Lewin, professor of government at Sweden’s University of Uppsala, devel ops a model of union government. He then draws a sample of Swedish local unions and interviews their membership and leadership. The results are then tested https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis against his model. More than 60 tables and 20 figures are included and are invaluable in understanding this study. Lewin’s basic model—the interactive model—is best described in his own words: A key word of this model — one corresponding to the em pirical term “oligarchy” used by Michels and to the norma tive terms “direct democracy,” “bureaucratic efficiency,” “revolutionary vanguard,” “competition of elites” used by Rousseau, Weber, Lenin, and Schumpeter, respectively—is the term “public spirit.” The development of public spirit is the normative postulate for the model of interactive democracy. In order for a polit ical system to be called democratic, the interaction between leadership and membership has to be constituted in such a way that it develops the public spirit of the individual. A methodological consequence of this condition is that the success of democracy is measurable by the extent to which that system has managed to further this public spirit. In recent decades, the LO (the Swedish trade union confederation) has been following a policy of “wage sol idarity,” aiming at greater income equality. According to Lewin, this “wage solidarity” policy is the empirical application of the normative postulate of public spirit. Lewin then adopts several key functional dependent variables designed to characterize each local union. The presence or absence of certain “activities or phenome non” are then linked with these functional dependent variables. Lewin’s seven independent variables are: or ganizational structure, wages, social-technical condi tions, mobility, sex, length of membership, and political preferences. And, then, to quote the author, “the main object of this study is to examine how these seven con ditions affect the pattern of interaction between leader ship and membership within the Swedish trade union movement.” The author’s basic judgment is: The main picture of trade union democracy emerging from this study is that of an opinion formation process with cer tain flaws such as relatively moderate membership activity, limited knowledge of union matters, and, in practice, re stricted freedom of opinion. However, there is good consen sus building with high agreement of opinion between members and leaders—with the exception of a few special problems in district branches with representational bodies —and a position of authority for the leaders whose actions generally have the support of the membership. More specifically, he maintains that Swedish local unions as a whole should be characterized as “manipu lative” rather than “democratic,” “impotent,” “thera peutic,” or “passive”. These designations are based on the responses to questions regarding each local union’s operation. The responses are then summed and weight ed, and the resulting number is then used to “character ize” each local. 73 MONTHLY LABOR REVIEW April 1981 • Book Reviews Are democratic practices “more highly developed in those locals that are characterized by a high degree of “public spirit”? Lewin finds that they are. Thus, democ racy is not only characterized by the “public spirit” by member participation. Readers acquainted with the American literature on union democracy will not be surprised by this conclusion. Indeed, it closely resem bles findings in Arnold Rose’s study of a large Team ster local in St. Louis ( Union Solidarity, University of Minnesota, 1952). Three difficulties trouble this reviewer. Is it really possible to select a single goal at a particular time and then attribute an acceptance of that goal as an indica tion of democracy? What happened to the concept of “his majesty’s loyal opposition”? Suppose Lewin’s study had been conducted at a time when support for wage solidarity was diminishing and the results even suggested a rejection of the goal. Would Lewin con clude that the trade unions were “undemocratic” or simply that a change in policy or leadership or both was needed? A second troublesome aspect is the scoring of the re sponses because it seems that the author has unduly weighted the leadership’s responses. In selecting the in dividuals to be interviewed, Lewin samples the local union membership, but almost all of the leadership is included. As a result, the leadership constitutes more than one quarter of the responses. Moreover, the leader ship responses are weighed double the membership responsed, thus the leadership constitutes about half of the characterization of the local. This study, as well as other studies of union atti tudes, reveals a divergence between the membership and the leadership. Indeed, several studies of unions focus on these diverging attitudes and their possible implica tions for union democracy. Lewin acknowledges that the leadership’s public spirit is much greater than the membership’s, but he does not seem to consider that the divergence cannot be too “great” in a “democratic” environment. There were many studies focusing on union democra cy following World War II in this country, but most concentrated on developing factual information. Few sought to link data within a theoretical framework. In terest in union democracy was revived in the late 1970’s. A few research studies have appeared and the Industrial Relations Research Association devoted a session to the topic recently. Lewin’s study is undoubt edly a serious contribution— particularly its attempt to combine empirical data into an overall theoretical framework. — J oseph K rislov Department of Economics University of Kentucky 74 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Publications received Economic and social statistics Griliches, Zvi, The Estimation of Distributed Lags in Short Panels. Cambridge, Mass., National Bureau of Economic Research, Inc., 1980, 41 pp. ( n b e r Technical Paper Se ries, 4.) $1. International Labor Organization, Technical Guide— Descrip tions of Series Published in the Bulletin of Labour Statistics: Vol. 1, Consumer Prices; Vol. II, Employment, Unemployment, Hours of Work, Wages. 7th ed. Geneva, International Labor Organization, 1980, 294 and 171 pp. $15.70 each. Distributed in the United States by the Washington Branch of i l o . U.S. Bureau of Labor Statistics, Where to Find b l s Statistics on Women. Prepared by Beverly L. Johnson. Washington, 1980, 10 pp. (Report 612.) U.S. Bureau of the Census, Illustrative Statistics on Women in Selected Developing Countries. Rev. ed. Washington, U.S. Department of Commerce, Bureau of the Census, 1980, 24 pp. $1.75, Superintendent of Documents, Washington 20402. ---------- W o r ld P o p u la tio n , 1 9 7 9 : R e c e n t D e m o g r a p h ic E s tim a te s for the Countries and Regions of the World— Summary. Washington, U.S. Department of Commerce, Bureau of the Census, 1980, 33 pp. $2, Superintendent of Docu ments, Washington 20402. Industrial relations Loney, Timothy J., “Capitulate or Litigate in Unfair Labor Practice Settlements: A New Try in the Federal Sector,” Labor Law Journal, November 1980, pp. 659-68. Perkins, Marianna M., “Economically Motivated Partial Clos ings: The Duty of Management to Decision-Bargain,” Labor Law Journal, November 1980, pp. 700-08. Robertson, David E. and Ronald D. Johnson, “Reverse Dis crimination: Did Weber Decide the Issue?” Labor Law Journal, November 1980, pp. 693-99. Sloane, Arthur A. and Fred Witney, Labor Relations. 4th ed. Englewood Cliffs, N.J., Prentice-Hall, Inc., 1981, 525 pp. $19.95. Stephens, Elvis C., “A Supervisor Performs Bargaining Unit Work: Is the Contract Violated?” Labor Law Journal, November 1980, pp. 683-92. U.S. Bureau of Labor Statistics, Major Agreements: Employer Pay and Leave for Union Business, Washington, 1980, 89 pp. (Bulletin 1425-19.) $4, Superintendent of Documents, Washington 20402. Women’s Labor Project, Bargaining for Equality: A Guide to Legal and Collective Bargaining Solutions for Workplace Problems That Particularly Affect Women. San Francisco, Calif., Women’s Labor Project, 1980, 143 pp. $4.50, pa per, National Labor Law Center, Washington 20036. International economics Statistical, Economic and Social Research and Training Cen ter for Islamic Countries, Areas of Economic Cooperation Among Islamic Countries: A Collection of Studies. Ankara, Turkey, Statistical, Economic and Social Research and Training Center for Islamic Countries, Organization of the Islamic Conference, 1980, 130 pp. U.S. Bureau of the Census, Country Demographic Profiles: Mo rocco. By Peter D. Johnson. Washington, U.S. Depart ment of Commerce, Bureau of the Census, 1980, 57 pp. ( isp -DP-23.) Stock No. 003-024— 02124-2. $4, Super intendent of Documents, Washington 20402. Valentine, T. J., “A Securities Value Model of Investment in Australia 1921-22 to 1938-39,” Australian Economic Pa pers, June 1980, pp. 168-81. Management and organization theory McMillan, John D. and Hoyt W. Doyel, “Performance Ap praisal: Match the Tool to the Task,” Personnel, JulyAugust 1980, pp. 12-20. Michael, Stephen R. and others, Techniques of Organizational Change. New York, McGraw Hill Book Co., 1981, 363 pp. $16.95. Milbourn, Gene, Jr. and Richard Cuba, “What Blacks Want from Their Jobs—and What They Get,” S.A.M. Ad vanced Management Journal, Autumn 1980, pp. 50-60. Remick, Carl, “Time for a Turnaround? Take Comfort, Take Stock, Take Action,” S.A.M. Advanced Management Journal, Autumn 1980, pp. 4-15. U.S. Department of Labor, Library, The Practice of Manage ment: Selected Recent References. (Prepared by Elizabeth K. Van Staaveren.) Washington, U.S. Department of La bor, Office of the Assistant Secretary for Administration and Management, Library, 1980, 101 pp. (Stock No. 029000-00406-4.) $4.50, Superintendent of Documents, Washington 20402. Whelan, Elizabeth M., “Confessions of a ‘Superwoman,’” Across the Board, December 1980, pp. 17-25. Monetary and fiscal policy American Enterprise Institute for Public Policy Research, Ma jor 1980 Tax Cut Proposals. Washington, 1980, 61 pp. (Legislative Analysis 21, 96th Cong., 2d sess.) Wilson, Thomas “Robertson, Money, and Monetarism,” Jour nal of Economic Literature, December 1980, pp. 1522-38. Prices and living conditions Eeckhoudt, Louis and Pierre Hansen, “Minimum and Maxi mum Prices, Uncertainty, and the Theory of the Competitive Firm,” The American Economic Review, De cember 1980, pp. 1064-68. Feldstein, Martin, “Inflation and the Stock Market,” The American Economic Review, December 1980, pp. 839-47. Levi, Maurice D. and John H. Makin, “Inflation Uncertainty and the Philips Curve: Some Empirical Evidence,” The American Economic Review, December 1980, pp. 102227. Linden, Fabian, “Inflation — and Taxation Without Authori zation, Part I,” Across-the-Board, November 1980, pp. 57 -59. Nowotny, Ewald, “Inflation and Taxation: Reviewing the Macroeconomic Issues,” Journal of Economic Literature. September 1980, pp. 1025-49. Productivity and technological change Engelberger, Joseph F., Robotics in Practice: Management and Applications of Industrial Robots. New York, AM ACOM , A https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis division of American Management Associations, 1980, 291 pp., bibliography. $39.95. Howard, Robert, “Brave New Workplace,” Working Papers for a New Society, November-December 1980, pp. 21-31. Organization for Economic Cooperation and Development, Technical Change and Economic Policy: Science and Tech nology in the New Economic and Social Context. Paris, Organization for Economic Cooperation and Develop ment, 1980, 117 pp. $12.50, O ECD Publications and Infor mation Center, Washington 20006. Peitchinis, Stephen G. with the assistance of Elizabeth MacDonald, The Attitude of Trade Unions Towards Tech nological Changes. Ottawa, Ontario, Canada, Department of Industry, Trade and Commerce, Technology Branch, 1980, 73 pp. “The Great Productivity Debate: The Puzzling Setback to Productivity Growth,” by Edward F. Denison: “The Role of Innovation,” by Michael Boretsky, Challenge, November-December 1980, pp. 3-25. Social institutions and social change Butler, Robert N., “Ageism,” Across the Board, November 1980, pp. 30-38. “Old Age: Environmental Complexity and Policy Interven tions,” The Journal of Social Issues, Spring 1980, pp. 1164. Terkel, Studs, American Dreams: Lost and Found. New York, Pantheon Books, 1980, 470 pp. $14.95. Wages and compensation Browne, E. Lynn, “Narrowing Regional Income Differ entials,” New England Economic Review. Federal Reserve Bank of Boston, September-October 1980, pp. 35-56. Costa, Michael L. Master Trust: Simplifying Employee Benefits Trust Fund Administration. New York, AM ACOM , A divi sion of American Management Associations, 1980, 213 pp. $19.95. Lazear, Edward, The Narrowing of Black-White Wage Differ entials Is Illusory. Cambridge, Mass., National Bureau of Economic Research, Inc., 1980. Reprinted from The American Economic Review, September 1979, pp. 553-64. (NBER Reprint 96.) $1. Stokey, Nancy L., “Job Differentiation and Wages, ” Quarterly Journal of Economics. November 1980, pp. 431-49. U.S. Bureau of Labor Statistics, Industry Wage Surveys: Hotels and Motels, May 1978 (Bulletin 2055, 47 pp., Stock No. 029-001-02460-6, $3.50); Auto Dealer Repair Shops, June 1978 (Bulletin 2060, 35 pp., Stock No. 029-001-02466-5, $2.25); Basic Iron and Steel, 1978- 79 (Bulletin 2064, 32 pp., Stock No. 029-001-02476-2, $2.25). Available from the Superintendent of Documents, Washington 20402. -------- National Survey of Professional, Administrative, Techni cal, and Clerical Pay, March 1980. Washington, 1980, 72 pp. (Bulletin 2081.) $4, Superintendent of Documents, Washington 20402. Welfare programs and social insurance Denton, Frank T., A. Leslie Robb, Byron G. Spencer, The Future Financing of the Canada and Quebec Pension Plans: Some Alternative Possibilities. Hull, Quebec, Eco75 MONTHLY LABOR REVIEW April 1981 • Book Reviews nomic Council of Canada, 1980, 40 pp. $3.50, Canada; $4.20, other countries. Available from Canadian Govern ment Publishing Center, Supply and Services Canada, Hull, Quebec. Halpern, Janice H., “Why Another Social Security Crisis?” New England Economic Review, Federal Reserve Bank of Boston, September-October 1980, pp. 5-19. Hay-Huggins, Social Security: Incorporating Changes to July 1, 1980. Philadelphia, Huggins & Co., Inc., 1980, 24 pp. (Booklet, 20.) Henretta, John C. and Angela M. O’Rand, “Labor-Force Par ticipation of Older Married Women,” Social Security Bul letin, August 1980, pp. 10-16. Lawrence, William J. and Stephen Leeds, An Inventory of State and Local Income Transfer Programs: Fiscal Year 1977. White Plains, N.Y., The Institute for Socioeconom ic Studies, 1980, 301 pp. $12. McGinn, Daniel F., Pension Funding: Actuarial Primer for Corporate Management. Chicago, 111., Charles D. Spencer & Associates, Inc., 1980, 124 pp. $15. March, Michael S., “Pensions for Public Employees Present Nationwide Problems,” Public Administration Review, July-August 1980, pp. 382-89. Seidman, Laurence S., “The Personal Consumption Tax and Social Welfare,” Challenge, September-October 1980, pp. 10-16. Simanis, Joseph G., “Worldwide Trends in Social Security, 1979,” Social Security Bulletin, August 1980, pp. 6-9. Worker training and development Braddock, Douglas, “Careers in Advertising,” Occupational Outlook Quarterly. Fall 1980, pp. 2-5. Briggs, Vernon M., Jr., Youth Employment Programs in the Southwest: Three Case Studies. Austin. University of Tex as at Austin, Bureau of Business Research, 1980, 47 pp. Dillich, Lisa S., “The Job Market for Teachers in the 80’s: Signs of Improvement . . . Charting the Course,” Occupa 76 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis tional Outlook Quarterly. Fall 1980, pp. 22-27. Holder, Todd, “Job Finding and Career Planning: A Course Outline,” Occupational Outlook Quarterly, Fall 1980, pp. 28-31. Mangum, Garth and others, Job Market Futurity: Planning and Managing Local Manpower Programs. Salt Lake City, Utah, Olympus Publishing Co., 1979, 398 pp. Martin, Gail M., “A Guide to Setting Up a Career Resource Center,” Occupational Outlook Quarterly, Fall 1980, pp. 12-17. -------- “The Job Hunter’s Guide to the Library,” Occupation al Outlook Quarterly, Fall 1980, pp. 6-11. Mirengoff, William and others, The New CETA: Effect on Pub lic Service Employment Programs Final Report. Washing ton, The National Research Council, Assembly of Behavioral and Social Sciences, Committee on Evaluation of Employment and Training Programs, 1980, 185 pp. Available from National Academy Press, Washington. Rudney, Shirley, “Writers and Editors: Or Oh Ye Scribes and Scholiasts,” Occupational Outlook Quarterly, Fall 1980, pp. 18-21. Sexton, Robert F., Barriers to the Older Student: The Limits of Federal Financial Aid Benefits. Washington, National In stitute for Work and Learning, 1980, 27 pp. Shaw, Lois B., A Profile of Women Potentially Eligible for the Displaced Homemaker Program Under the Comprehensive Employment and Training Act of 1978. Columbus, The Ohio State University, College of Administrative Science, Center for Human Resource Research, 1979, 19 pp. 80 cents. U.S. Bureau of Labor Statistics, A Counselor's Guide to Occu pational Information. Washington, 1980, 60 pp. (Bulletin 2042.) Stock No. 029-001-02490-8. $3.50, Superinten dent of Documents, Washington 20402. U.S. Occupational Safety and Health Administration, Training Requirements in OSHA Standards. Rev. ed. Washington, U.S. Department of Labor, Occupational Safety and Health Administration, 1979, 62 pp. Single copy free. □ Current Labor Statistics Notes on Current Labor Statistics ..................................................................................................................................... Schedule of release dates for major BLS statistical series .......................................................................... Employment data from household survey. Definitions and notes 1. 2. 3. 4. 5. 6. 7. ............................................................. Employment status of noninstitutional population, selected years, 1950-79 ................................................................ Employment status by sex, age, and race, seasonally adjusted ........................................................................................ Selected employment indicators, seasonally adjusted ........................................................................................................ Selected unemployment indicators, seasonally adjusted ..................................................................................................... Unemployment rates, by sex and age, seasonally adjusted ................................................................................................ Unemployed persons, by reason for unemployment, seasonally adjusted ..................................................................... Duration of unemployment, seasonally adjusted ................................................................................................................ Employment, hours, and earnings data from establishment surveys. Definitions and notes 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Employment by industry, 1950-79 ....................................................................................................................................... Employment by State ............................................................................................................................................................... Employment by industry division and major manufacturing group ................................................................................ Employment by industry division and major manufacturing group, seasonally adjusted ........................................ Labor turnover rates in manufacturing, 1977 to date ........................................................................................................ Labor turnover rates in manufacturing, by major industry group ................................................................................... Hours and earnings, by industry division, 1949-79 .......................................................................................................... Weekly hours, by industry division and major manufacturing g r o u p .............................................................................. Weekly hours, by industry division and major manufacturing group, seasonally adjusted ...................................... Hourly earnings, by industry division and major manufacturing group . ...................................................................... Hourly Earnings Index, by industry division, seasonally adjusted ................................................................................ Weekly earnings, by industry division and major manufacturing group ........................................................................ Gross and spendable weekly earnings, in current and 1967 dollars, 1960 to date ..................................................... Linemployment insurance data. Definitions and notes 78 78 79 79 80 81 82 83 83 83 84 85 85 86 87 88 88 89 90 91 92 92 93 94 ....................................................................................... ........................................................................................ 95 95 .......................................................................................................................................... Consumer Price Index, 1967-79 ............................................................................................................................................. Consumer Price Index, U.S. city average, general summary and selected items .......................................................... Consumer Price Index, cross classification of region and population size class .......................................................... Consumer Price Index, selected areas ..................................................................................................................................... Producer Price Indexes, by stage of processing .................................................................................................................. Producer Price Indexes, by commodity groupings ............................................................................................................. Producer Price Indexes, for special commodity groupings ................................................................................................ Producer Price Indexes, by durability of product ............................................................................................................... Producer Price Indexes for the output of selected SIC industries ................................................................................ 96 97 97 103 104 105 106 108 108 108 Productivity data. Definitions and notes ..................................................................................... m 21. Unemployment insurance and employment service operations Price data. Definitions and notes 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. Annual indexes of productivity, hourly compensation, unit costs, and prices, 1950-79 Annual changes in productivity, hourly compensation, unit costs, and prices, 1969-79 ............................................. Quarterly indexes of productivity, hourly compensation, unit costs, and prices, seasonally adjusted ................... Percent change from preceding quarter and year in productivity, hourly compensation, unit costs, and prices . . Labor-management data. Definitions and notes ....................................................................................................... 35. Wage and benefit settlements in major collective bargaining units, 1975 to date ........................................................ 36. Effective wage rate adjustments going into effect in major collective bargaining units, 1975 to date ..................... 37. Work stoppages, 1947 to date ............................................................................................................................................... https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Ill 112 112 113 114 114 115 115 NOTES ON CURRENT LABOR STATISTICS This section of the Review presents the principal statistical se ries collected and calculated by the Bureau of Labor Statistics. A brief introduction to each group of tables provides defi nitions, notes on the data, sources, and other material usually found in footnotes. published for numerous Consumer and Producer Price Index series. However, seasonally adjusted indexes are not published for the U.S. average All Items CPI. Only seasonally adjusted percent changes are available for this series. Some data are adjusted to eliminate the effect of changes in price. These adjustments are made by dividing current dollar values by the Consumer Price Index or the appropriate component of the index, then multiplying by 100. For example, given a current hourly wage rate of $3 and a current price index number of 150, where 1967 = 100, the hourly rate expressed in 1967 dollars is $2 ($3/150 X 100 = $2). The resulting values are described as “real,” “constant,” or “ 1967” dollars. A d ju s t m e n ts fo r p r ic e c h a n g e s . Readers who need additional information are invited to consult the BLS regional offices listed on the inside front cov er of this issue of the Review. Some general notes applicable to several series are given below. Certain monthly and quarterly data are adjusted to eliminate the effect of such factors as climatic conditions, industry production schedules, opening and closing of schools, holiday buying periods, and vacation practices, which might otherwise mask short term movements of the statistical series. Tables containing these data are identified as “seasonally adjusted.” Seasonal effects are estimated on the basis of past experience. When new seasonal factors are com puted each year, revisions may affect seasonally adjusted data for sev eral preceding years. Seasonally adjusted labor force data in tables 2-7 were revised in the February 1981 issue of the R e v ie w to reflect the preceding year’s experience. Beginning in January 1980, the BLS introduced two major modifications in the seasonal adjustment methodology for labor force data. First, the data are being seasonally adjusted with a new proce dure called X -ll/A R IM A , which was developed at Statistics Canada as an extension of the standard X -ll method. A detailed description of the procedure appears in T h e X - l l A R I M A S e a s o n a l A d ju s tm e n t M e th o d by Estela Bee Dagum (Statistics Canada Catalogue No. 12-564E, February 1980). The second change is that seasonal factors are now being calculated for use during the first 6 months of the year, rather than for the entire year, and then are calculated at mid-year for the July-December period. Revisions of historical data continue to be made only at the end of each calendar year. Annual revision of the seasonally adjusted payroll data in tables 11, 13, 16, and 18 begins with the August 1980 issue using the X -ll ARIMA seasonal adjustment methodology. New seasonal fac tors for productivity data in tables 33 and 34 are usually intro duced in the September issue. Seasonally adjusted indexes and percent changes from month to month and from quarter to quarter are S e a s o n a l a d ju s tm e n t. A v a ila b ilit y o f in f o r m a tio n . Data that supplement the tables in this section are published by the Bureau of Labor Statistics in a variety of sources. Press releases provide the latest statistical information published by the Bureau; the major recurring releases are published according to the schedule given below. The H a n d b o o k o f L a b o r S ta tis tics 1 9 7 8 , Bulletin 2000, provides more detailed data and greater his torical coverage for most of the statistical series presented in the M o n th ly L a b o r R ev ie w . More information from the household and es tablishment surveys is provided in E m p lo y m e n t a n d E a rn in g s, a monthly publication of the Bureau, and in two comprehensive data books issued annually — E m p lo y m e n t a n d E a rn in g s, U n ite d S ta te s and E m p lo y m e n t a n d E a rn in g s, S ta te s a n d A reas. More detailed informa tion on wages and other aspects of collective bargaining appears in the monthly periodical, C u r r e n t W a g e D e ve lo p m e n ts . More detailed price information is published each month in the periodicals, the C P I D e ta ile d R e p o r t and P r o d u c e r P ric e s a n d P rice I n d e x es. Symbols p = preliminary. To improve the timeliness of some series, preliminary figures are issued based on representative but incomplete returns. r = revised. Generally this revision reflects the availability of later data but may also reflect other adjustments, n.e.c. = not elsewhere classified. Schedule of release dates for major BLS statistical series T itle a n d fre q u e n c y P e rio d M LR ta b le c o v e re d d a te c o v e re d num ber April 3 March May 8 April 1-11 April 3 March May 8 April 26-30 22-25 (m o n th ly e x c e p t w h e re in d ic a te d ) d a te Employment s itu a tio n ............................................................................... Producer Price Index ............................................................................... ............................................................................. April 23 March May 22 April ............................................................................................ April 23 March May 22 April M ajor collective bargaining settlements (quarterly) ............................. April 27 1st quarter Consumer Price Index Real earnings 14-20 35-36 Productivity and costs: 31-34 April 27 1st quarter May 27 1st quarter 31-34 ............................................................ April 29 March May 27 April 12-13 Work s to p p a g e s......................................................................................... April 29 March May 29 April 37 Nonfarm business and manufacturing .............................................. Nonfinancial corporations ................................................................... Labor turnover in manufacturing 78 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis EMPLOYMENT DATA FROM THE HOUSEHOLD SURVEY E m p l o y m e n t d a t a in this section are obtained from the Current Population Survey, a program of personal interviews conducted monthly by the Bureau of the Census for the Bureau of Labor Statistics. The sample consists of about 65,000 households beginning in January 1980, selected to represent the U.S. population 16 years of age and older. Households are interviewed on a rotating basis, so that three-fourths of the sample is the same for any 2 consecutive months. those not classified as employed or unemployed; this group includes persons retired, those engaged in their own housework, those not working while attending school, those unable to work because of longterm illness, those discouraged from seeking work because of personal or job market factors, and those who are voluntarily idle. The n o n in s titu tio n a l p o p u la tio n comprises all persons 16 years of age and older who are not inmates of penal or mental institutions, sanitariums, or homes for the aged, infirm, or needy. are those employed at least 35 hours a week; are those who work fewer hours. Workers on parttime schedules for economic reasons (such as slack work, terminating or starting a job during the week, material shortages, or inability to find full-time work) are among those counted as being on full-time status, under the assumption that they would be working full time if conditions permitted. The survey classifies unemployed persons in full-time or part-time status by their reported preferences for full-time or part-time work. F u ll-t im e w o r k e r s p a r t-tim e w o r k e r s Definiitions E m p iloyed p e r so n s are (1) those who worked for pay any time during the week which includes the 12th day of the month or who worked unpaid for 15 hours or more in a family-operated enterprise and (2) those who were temporarily absent from their regular jobs because of illness, vacation, industrial dispute, or similar reasons. A person working at more than one job is counted only in the job at which he or she worked the greatest number of hours. are those who did not work during the survey week, but were available for work except for temporary illness and had looked for jobs within the preceding 4 weeks. Persons who did not look for work because they were on layoff or waiting to start new jobs within the next 30 days are also counted among the unemployed. The u n e m p lo y m e n t r a te represents the number unemployed as a percent of the civilian labor force. U n e m p lo y e d p e r so n s The c iv ilia n la b o r fo r c e consists of all employed or unemployed persons in the civilian noninstitutional population; the to ta l la b o r fo r c e includes military personnel. Persons n o t in th e la b o r fo r c e are 1. Notes on the data From time to time, and especially after a decennial census, adjustments are made in the Current Population Survey figures to correct for estimating errors during the preceding years. These adjustments affect the comparability of historical data presented in table 1. A description of these adjustments and their effect on the various data series appear in the Explanatory Notes of E m p lo y m e n t a n d E a rn in g s. Data in tables 2 - 7 are seasonally adjusted, based on the seasonal experience through December 1980. Employment status of the noninstitutional population, 16 years and over, selected years, 1950-80 [Numbers in thousands] C ivilian la b o r fo rc e T o ta l la b o r fo rc e Year U n e m p lo y e d E m p lo y e d T o ta l n o n N o t in in s titu tio n a l p o p u la tio n N um ber P e rc e n t o f p o p u la tio n P e rc e n t o f N o n a g ri- T o ta l T o ta l A g ric u ltu re cultu ral Num ber in d u s trie s la b o r fo rc e la b o r fo rc e 1950 1955 1960 1964 1965 ............................................................ ............................................................ ............................................................ ............................................................ ............................................................ 106,645 112,732 119,759 127,224 129,236 63,858 68,072 72,142 75,830 77,178 599 60.4 60.2 59.6 59.7 62,208 65,023 69,628 73,091 74,455 58,918 62,170 65,778 69,305 71,088 7,160 6,450 5,458 4,523 4,361 51,758 55,722 60,318 64,782 66,726 3,288 2,852 3,852 3,786 3,366 5.3 4.4 5.5 5.2 4.5 42,787 44,660 47,617 51,394 52,058 1966 1967 1968 1969 1970 ............................................................ ............................................................ ............................................................ ............................................................ ............................................................ 131,180 133,319 135,562 137,841 140,182 78,893 80,793 82,272 84,240 85,903 60.1 60.6 60.7 61.1 61.3 75,770 77,347 78,737 80,734 82,715 72,895 74,372 75,920 77,902 78,627 3,979 3,844 3,817 3,606 3,462 68,915 70,527 72,103 74,296 75,165 2,875 2,975 2,817 2,832 4,088 3.8 3.8 3.6 3.5 4.9 52,288 52,527 53,291 53,602 54,280 1971 1972 1973 1974 1975 ............................................................ ............................................................ ............................................................ ............................................................ ............................................................ 142,596 145,775 148,263 150,827 153,449 86,929 88,991 91,040 93,240 94,793 61.0 61.0 61.4 61.8 61.8 84,113 86,542 88,714 91,011 92,613 79,120 81,702 84,409 83,935 84,783 3,387 3,472 3,452 3,492 3,380 75,732 78,230 80,957 82,443 81,403 4,993 4,840 4,304 5,076 7,830 5.9 5.6 4.9 5.6 8.5 55,666 56,785 57,222 57,587 58,655 1976 1977 1978 1979 1980 ............................................................ ............................................................ ............................................................ ............................................................ ............................................................ 156,048 158,559 161,058 163,620 166,246 96,917 99,534 102,537 104,996 106,821 62.1 62.8 63.7 64.2 64.3 94,773 97,401 100,420 102,908 104,719 87,485 90,546 94,373 96,945 97,270 3,297 3,244 3,342 3,297 3,310 84,188 87,302 91,031 93,648 93,960 7,288 6,855 6,047 5,963 7,448 6.0 7.7 7.0 59,130 59,025 58,521 58,623 59,425 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5.8 7.1 79 MONTHLY LABOR REVIEW April 1981 • Current Labor Statistics: Household Data 2. Employment status by sex, age, and race, seasonally adjusted [Numbers in thousands] 1980 A nnual a v e ra g e E m p lo y m e n t sta tu s D ec. Nov. S e p t. O ct. 166,789 107,101 164,667 104,980 97,180 3,399 93,781 7,800 7.4 59,687 167,005 107,288 164,884 105,167 97,206 3,319 93,887 7,961 7.6 59,717 167,201 107,404 165,082 105,285 97,339 3,340 93,999 7,946 7.5 59,797 167,396 107,191 165,272 105,067 97,282 3,394 93,888 7,785 7.4 60,205 167,585 2,125 165,460 105,543 97,696 3,403 94,294 7,847 7,4 59,917 167,747 69,756 55,403 51,791 2,301 49,490 3,612 6.5 14,353 69,864 55,475 51,823 2,389 49,434 3,652 69,987 55,495 51,963 2,351 49,612 3,532 6.4 14,492 70,095 55,539 52,007 2,372 49,635 3,532 6.4 14,556 70,198 55,470 52,045 2,331 49,714 3,425 70,320 55,443 52,091 2,378 49,713 3,352 6.0 14,877 70,413 55,445 52,134 2,289 49,844 3,312 6.0 14,968 78,598 40,317 37,804 592 37,212 2,513 38,281 78,723 40,486 37,754 576 37,178 2,732 6.7 38,237 78,842 40,629 37,909 574 37,335 2,720 6.7 38,213 78,959 40,570 37,820 665 37,155 2,750 37,977 78,473 40,523 37,890 555 37,335 2,633 6.5 37,950 38,389 79,071 40,942 38,191 621 37,570 2,750 6.7 38,129 79,175 41,090 38,410 615 37,794 2,680 6.5 38,085 16,268 9,293 7,557 397 7,160 1,736 18.7 6,975 16,235 9,019 7,322 354 6,968 1,697 18.8 7,216 16,205 9,188 7,553 418 7,135 1,635 17.8 7,017 16,174 9,186 7,489 392 7,097 1,697 18.5 6,988 16,145 9,117 7,423 394 7,029 1,694 18.6 7,028 16,114 9,027 7,417 398 7,019 1,610 17.8 7,087 16,069 9,158 7,414 404 7,010 1,744 19.0 6,911 16,039 9,146 7,384 376 7,008 1,762 19.3 6,893 143,770 143,900 92,335 92,288 86,075 86,067 6,260 6.7 51,435 51,612 144,051 92,317 86,307 144,211 92,516 86,371 6,145 144,359 144,500 92,562 92,383 86,409 86,377 6,006 6,153 6.5 51,797 52,117 144,651 92,832 86,620 6,213 6.7 51,819 144,774 93,035 86,940 6,095 20,564 12,630 10,902 1,728 13.7 7,934 20,617 12,677 10,894 1,783 14.1 7,940 20,771 20,809 12,684 11,051 1,634 12.9 8,125 20,853 12,598 10,942 1,655 13.1 8,255 1979 1980 Feb. M ar. A pr. M ay Ju n e July 163,620 104,996 161,532 102,908 96,945 3,297 93,648 5,963 5.8 58,623 166,246 106,821 164,143 104,719 97,270 3,310 93,960 7,448 7.1 59,425 165,298 106,357 163,211 104,271 97,817 3,329 94,488 6,454 165,693 106,519 163,601 104,427 97,225 3,262 93,963 7,202 6.9 59,174 165,886 107,148 163,799 105,060 97,116 3,352 93,764 7,944 7.6 58,739 166,105 106,683 164,013 104,591 96,780 3,232 93,548 7,811 7.5 59,422 166,391 107,119 164,293 105,020 96,999 3,267 93,732 58,940 165,506 106,261 163,416 104,171 97,628 3,337 94,291 6,543 6.3 59,245 68,293 54,486 52,264 2,350 49,913 2,223 4.1 13,807 69,607 55,234 51,972 2,355 49,617 3,261 5.9 14,373 69,140 55,017 52,436 2,418 50,018 2,581 4.7 14,123 69,238 54,966 52,230 2,386 49,844 2,736 5.0 14,272 69,329 55,127 51,935 2,334 49,601 3,192 5.8 14,202 69,428 55,440 51,871 2,337 49,494 3,569 6.4 13,988 69,532 55,182 51,624 2,301 49,323 3,558 6.4 14,350 69,664 55,344 51,714 2,306 49,408 3,630 76,860 38,910 36,698 591 36,107 2,213 5.7 37,949 78,295 40,243 37,696 575 37,120 2,547 6.3 38,052 77,766 39,871 37,560 568 36,992 2,311 5.8 37,895 77,876 39,845 37,550 557 36,973 2,295 5.8 38,031 77,981 40,098 37,597 560 37,037 2,501 78,211 40,182 37,613 550 37,063 2,569 6.4 38,029 78,360 40,383 37,728 564 37,164 2,655 37,883 78,090 40,193 37,600 598 37,002 2,593 6.5 37,897 16,379 9,512 7,984 356 7,628 1,528 16.1 6,867 16,242 9,242 7,603 380 7,223 1,640 17.7 7,000 16,305 9,383 7,821 343 7,478 1,562 16.6 6,922 16,302 9,360 7,848 374 7,474 1,512 16.2 6,942 16,291 9,202 7,693 368 7,325 1,509 16.4 7,089 16,281 9,427 7,645 377 7,268 1,782 18.9 6,854 16,271 9,227 7,543 381 7,162 1,684 18.3 7,044 141,614 90,602 86,025 4,577 5.1 51,011 143,657 92,171 86,380 5,790 6.3 51,486 142,951 91,873 86,869 5,004 5.4 51,078 143,115 91,802 86,723 5,079 5.5 51,313 143,254 92,044 86,389 5,655 143,403 92,501 86,251 6,250 51,210 50,902 143,565 92,134 86,007 6,127 6.7 51,431 19,918 12,306 10,920 1,386 11.3 7,612 20,486 12,548 10,890 1,658 13.2 7,938 20,261 12,395 10,945 1,450 11.7 7,866 20,301 12,320 10,856 1,464 11.9 7,981 20,346 12,401 10,838 1,563 20,395 12,546 10,842 1,704 13.6 7,849 20,448 12,491 10,809 1,682 13.5 7,957 Aug. TOTAL Total noninstitutional population1 ................. Total labor force ............................... Civilian noninstitutional population1 ............ Civilian labor force Employed ........................ ............................... Agriculture ...................... Nonagricultural Industries Unemployed .......................... Unemployment rate .............. Not in labor force .......................... 6.2 166,578 107,059 164,464 104,945 97,003 3,210 93,793 7,942 7.6 7.6 59,273 59,519 8,021 2,121 165,627 105,681 97,927 3,281 94,646 7,754 7.3 59,946 Men, 20 years and ove r Civilian noninstitutional population1 Civilian labor force Employed ............ ............................... ...................................... Agriculture ............................. Nonagricultural industries Unemployed .. . .................................. Unemployment rate Not in labor force ..................... ................................. 6.6 14,320 6.6 14,389 6.2 14,728 W om en, 20 years and ove r Civilian noninstitutional population1 ............ Civilian labor force Employed ............................... ...................................... Agriculture ............................. Nonagricultural industries Unemployment rate Not in labor force ................... ............................... B oth sexes, 16 Civilian labor force ......... ............................. .................................... Agriculture .......................... Nonagricultural industries .. Unemployed ............................... Unemployment rate Not in labor force 6.2 6.6 6.2 6.8 19 years Civilian noninstitutional population1 Employed .. ............................... Unemployed ................... ............................... W hite Civilian noninstitutional population1 Civilian labor force Employed ......... ............................. .................................... Unemployed ............................... Unemployment rate Not in labor force ................... ............................... 6.1 6.8 6.8 6,221 6,010 6.5 51,734 6.6 51,695 6.6 6.6 51,739 Black and o th e r Civilian noninstitutional population1 Civilian labor force Employed .......... . . . . ■................... .................................... Unemployed ............................... Unemployment rate Not in labor force ................... ............................... 12.6 7,945 1As in table 1, population figures are not seasonally adjusted. NOTE: The monthly data in this table have been revised to reflect seasonal experience through 1980. 80 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 20,523 12,661 10,902 1,759 13.9 7,862 20,673 12,686 10,884 1,802 14.2 7,987 20,723 12,706 10,922 1,784 14.0 8,017 12,668 10,895 1,773 14.0 8,103 3. Selected employment indicators, seasonally adjusted [ In th o u sa n d s] A n n u al a v e ra g e 1981 1980 S e le c te d c a te g o rie s 1979 1980 Feb. Mar. A pr. M ay Ju n e July Aug. S ep t. O ct. N o v. D ec. Jan. Feb. 96,945 56,499 40,446 39,090 22,724 97,270 55,988 41,283 38,302 23,097 97,817 56,631 41,186 38,827 23,150 97,628 56,489 41,139 38,706 23,171 97,225 56,054 41,171 38,373 23,094 97,116 55,914 41,202 38,197 23,145 96,780 55,597 41,183 38,220 23,131 96,999 55,678 41,321 38,049 23,118 97,003 55,589 41,414 37,987 23,126 97,180 55,754 41,426 38,027 23,027 97,206 55,881 41,325 38,142 22,993 97,339 55,897 41,442 38,167 23,065 97,282 55,920 41,362 38,231 23,063 97,696 56,012 41,684 38,182 23,352 97,927 56,045 41,882 38,113 23,356 49,342 15,050 50,809 15,613 50,447 15,423 50,336 15,408 50,465 15,528 50,627 15,540 50,836 15,682 51,023 15,717 51,307 15,751 51,074 15,540 51,101 15,780 51,148 15,863 51,065 15,810 51,594 15,965 51,698 15,813 10,516 6,163 17,613 32,066 12,880 10,909 3,612 4,665 12,834 2,703 10,919 6,172 18,105 30,800 12,529 10,346 3,468 4,456 12,958 2,704 10,953 6,179 17,892 31,669 12,722 10,648 3,557 4,742 13,005 2,745 10,765 6,132 18,031 31,568 12,740 10,556 3,551 4,721 12,982 2,718 10,773 6,048 18,116 31,120 12,713 10,450 3,495 4,462 13,009 2,682 10,877 6,072 18,138 30,800 12,551 10,379 3,458 4,412 12,947 2,730 10,901 6,046 18,207 30,443 12,357 10,233 3,429 4,424 12,941 2,625 10,999 6,130 18,177 30,276 12,403 10,189 3,354 4,330 13,017 2,694 11,109 6,140 18,307 30,232 12,346 10,147 3,478 4,261 12,928 2,620 11,007 6,316 18,211 30,436 12,490 10,979 6,277 18,065 30,521 12,485 11,016 6,155 18,114 30,550 12,424 10,247 3,429 4,450 2,729 11,009 6,175 18,071 30,373 12,337 10,194 3,402 4,440 12,982 2,804 11,363 6,265 18,001 30,338 12,306 10,331 3,322 4,380 12,946 2,737 11,488 6,271 18,125 30,446 12,386 10,390 3,361 4,309 13,070 2,662 3,434 4,310 12,943 2,757 3,443 4,383 12,891 2,735 1,413 1,580 304 1,384 1,628 297 1,411 1,636 293 1,429 1,612 295 1,377 1,602 287 1,396 1,642 292 1,369 1,606 278 1,360 1,631 295 1,282 1,640 280 1,417 309 1,363 1,640 325 1,417 1,612 324 1,411 1,655 305 1,465 1,615 284 1,336 1,610 325 86,540 15,369 71,171 1,240 69,931 6,652 455 86,706 15,624 71,081 1,166 69,915 6,850 404 87,192 15,539 71,653 1,181 70,472 6,841 400 87,110 15,605 71,505 1,140 70,365 6,807 385 86,789 15,635 71,154 1,151 70,003 6,804 363 86,722 15,720 71,002 1,197 69,805 6,698 406 86,370 15,817 70,553 1,204 69,349 6,728 445 86,432 15,718 70,714 1,230 69,484 6,801 426 86,490 15,531 70,959 1,196 69,763 6,881 403 86,395 15,575 70,820 1,125 69,695 6,977 416 86,587 15,597 70,990 1,144 69,846 7,005 417 86,643 15,651 70,992 1,148 69,844 6,943 405 86,513 15,653 70,860 69,750 6,973 396 87,125 15,738 71,387 1,197 70,190 6,839 422 87,236 15,589 71,647 1,176 70,471 6,923 371 88,133 72,647 3,281 1,325 1,956 12,205 88,325 72,022 3,965 1,669 2,296 12,338 88,830 72,937 3,454 1,415 2,039 12,439 88,505 72,618 3,470 1,481 1,989 12,417 88,041 71,986 3,803 1,680 2,123 12,252 87,974 71,501 4,276 1,998 2,278 12,197 87,994 71,454 3,969 1,734 2,235 12,571 87,431 70,825 4,086 1,794 2,292 12,520 88,195 71,526 4,143 1,709 2,434 12,526 88,246 71,929 4,183 1,701 2,482 12,134 88,488 72,071 4,220 1,685 2,535 12,197 88,694 72,265 4,176 1,620 2,556 12,253 88,468 72,131 4,218 1,647 2,571 12,119 89,499 72,807 4,474 1,698 2,776 12,218 89,441 72,945 4,145 1,622 2,523 12,351 C H A R A C T E R IS T IC Total employed, 16 years and over ...................... Men ............................................................ Women........................................................ Married men, spouse present ........................ Married women, spouse present.................... O C C U P A T IO N White-collar workers............................................ Professional and technical ............................ Managers and administrators, except farm ........................................................ Salesworkers................................................ Clerical workers............................................ Blue-collar workers.............................................. Craft and kindred workers ............................ Operatives, except transport.......................... Transport equipment operatives .................... Nonfarm laborers.......................................... Service workers .................................................. Farmworkers ...................................................... 10,202 10,210 12,888 M A JO R IN D U S T R Y A N D C L A S S OF WORKER Agriculture: Wage and salary workers.............................. Self-employed workers.................................. Unpaid family workers .................................. Nonagricultural industries: Wage and salary workers.............................. Government .......................................... Private industries.................................... Private households .......................... Other industries .............................. Self-employed workers.................................. Unpaid family workers .................................. 1,688 1,110 PERSONS AT W O R K ' Nonagricultural industries .................................... Full-time schedules ...................................... Part time for economic reasons...................... Usually work full time . ............................ Usually work part tim e............................ Part time for noneconomic reasons ................ 'Exoudes persons "with a job but not at work” during the survey period for such reasons as vacation illness, or industrial disputes. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NOTE: The monthly data in this table have been revised to reflect seasonal experience through 1980. MONTHLY LABOR REVIEW April 1981 • Current Labor Statistics: Household Data 4. Selected unemployment indicators, seasonally adjusted [Unemployment rates] A n n u al a v e ra g e 1980 1981 S e le c te d c a te g o rie s 1979 1980 Feb. Total, 16 years and over...................................... Men, 20 years and over................................ Women, 20 years and over .......................... Both sexes, 16-19 years ............................ 5.8 4.1 5.7 16.1 7.1 5.9 6.3 17.7 White, total .................................................. Men, 20 years and over ........................ Women, 20 years and o v e r.................... Both sexes, 16-19 years ...................... 5.1 3.6 5.0 13.9 Black and other, total.................................... Men, 20 years and over ........................ Women, 20 years and o v e r.................... Both sexes, 16-19 years ...................... 11.3 8.4 M ar. A pr. M ay Ju n e July Aug. S e p t. O ct. 6.3 5.0 5.8 16.2 6.9 5.8 7.5 6.4 6.4 18.3 18.7 7.6 6.5 6.5 18.8 7.4 16.4 7.6 6.4 6.5 18.9 7.6 4.7 5.8 16.6 17.8 7.6 6.4 6.7 18.5 6.3 5.2 5.6 14.8 5.4 4.1 5.2 14.2 5.5 4.5 5.0 14.1 5.2 5.5 14.8 5.8 5.7 17.1 6.7 5.7 5.7 16.1 5.8 5.8 16.5 6.7 5.8 5.8 16.6 6.5 5.8 5.5 15.1 5.7 5.8 16.0 13.2 11.4 11.7 9.5 9.3 36.9 11.9 9.5 10.5 33.7 12.6 10.8 11.1 13.6 11.7 31.8 35.3 13.9 12.5 11.3 35.9 13.7 12.5 10.9 37.6 14.1 13.2 10.9 34.8 3.2 5.4 8.5 5.8 3.4 5.4 4.0 5.7 9.0 6.5 4.6 4.6 4.9 4.8 8.3 7.3 9.0 8.5 7.2 N o v. D ec. Jan. Feb. 7.4 7.3 6.7 19.0 6.5 19.3 C H A R A C T E R IS T IC Married men, spouse present........................ Married women, spouse present.................... Women who head families............................ Full-time workers.......................................... Part-time workers ........................................ Unemployed 15 weeks and over.................... Labor force time lost1 .................................. 10.1 11.1 33.5 35.8 2.7 5.1 8.3 5.3 8.7 4.2 5.8 9.1 6.8 6.2 6.3 8.7 1.7 7.9 8.8 1.2 6.6 3.3 2.4 3.7 2.5 3.4 2.3 1.9 3.9 4.6 6.9 4.5 8.4 5.4 2.4 4.4 5.3 10.0 6.6 12.2 8.8 7.1 3.8 14.6 7.9 4.4 1.2 8.6 5.9 8.4 1.3 6.2 6.1 8.8 6.8 1.5 7.6 3.4 2.3 3.7 2.4 6.8 11.6 6.1 1.6 8.6 13.5 12.2 6.0 8.8 1.7 8.1 6.6 6.6 6.8 6.6 6.2 10.6 37.8 4.7 5.7 9.0 7.3 8.7 6.6 14.2 12.1 12.3 37.4 4.6 6.1 8.8 7.4 8.8 1.8 9.0 7.3 8.7 8.4 8.3 2.2 8.2 3.7 2.4 3.7 2.4 3.8 2.5 2.6 2.5 4.2 5.4 2.4 4.3 5.4 6.0 2.0 6.0 10.2 7.3 9.1 7.5 6.4 6.7 18.6 6.6 5.7 5.8 16.4 14.0 12.0 12.2 7.4 6.2 6.8 17.8 6.5 5.5 5.9 15.4 14.0 11.6 36.6 12.3 37.5 4.4 5.9 9.9 7.4 4.3 5.8 10.4 7.3 2.2 8.6 2.2 8.4 8.3 8.2 2.3 8.2 3.9 3.9 2.5 2.6 2.5 4.6 5.6 2.5 4.7 5.8 10.5 7.1 12.9 6.0 6.7 5.5 6.0 16.8 12.9 10.5 11.0 36.5 4.2 6.2 10.5 7.1 9.2 2.2 8.2 6.0 6.6 5.4 5.7 17.4 13.1 10.8 11.9 35.4 4.1 5.8 9.6 7.1 9.1 2.1 8.1 O C C U P A T IO N White-collar workers .......................................... Professional and technical ............................ Managers and administrators, except farm ........................................................ Salesworkers .............................................. Clerical workers .......................................... Blue-collar workers ............................................ Craft and kindred workers ............................ Operatives, except transport ........................ Transport equipment operatives .................... Nonfarm laborers ........................................ Service workers.................................................. Farmworkers.................................................. 10.8 2.2 4.3 4.7 7.9 5.1 9.3 6.8 12.5 7.0 3.9 2.4 4.0 4.8 8.2 5.5 9.4 6.9 13.3 7.2 4.2 2.6 4.5 5.1 9.6 6.5 11.6 8.4 14.1 7.8 4.8 3.8 2.6 2.6 3.7 2.5 2.5 4.4 5.2 4.4 5.3 10.9 7.5 13.7 8.7 14.9 15.7 4.7 4.5 8.2 11.1 7.5 13.4 10.0 8.1 2.6 4.2 5.4 11.3 7.2 14.4 10.0 15.8 8.3 4.6 4.0 11.1 10.8 10.8 7.6 13.3 9.8 16.1 8.5 5.5 7.4 13.0 10.4 15.2 7.1 13.2 2.4 4.8 5.6 10.7 7.1 13.0 15.3 8.3 4.4 15.0 8.3 4.0 14.8 7.8 4.0 7.8 14.6 9.2 9.5 8.9 5.3 7.8 5.6 4.4 7.8 14.8 8.9 9.0 7.7 13.8 8.1 4.3 10,6 10.6 8.8 3.9 3.7 2.8 2.6 2.4 4.4 5.7 2.4 4.0 5.3 10.2 6.8 12.1 9.1 15.0 8.0 5.0 10.1 7.2 11.9 8.3 14.9 8.7 4.7 IN D U S T R Y Nonagricultural private wage and salary workers2 Construction ................................................ Manufacturing.............................................. Durable goods ...................................... Nondurable goods.................................. Transportation and public utilities .................. Wholesale and retail trade............................ Finance and service industries ...................... Government workers .......................................... Agricultural wage and salary workers .................. 5.7 10.2 5.5 5.0 6.4 3.7 6.5 4.9 3.7 9.1 7.4 14.2 8.5 8.9 7.9 4.9 7.4 5.3 4.1 10.8 6.2 10.9 6.7 6.5 6.9 4.5 6.6 4.7 4.0 9.5 6.3 13.1 6.6 6.5 6.8 3.9 6.4 4.9 4.1 10.3 7.0 14.5 7.9 8.3 7.3 4.7 7.0 5.1 4.3 11.7 ' Aggregate hours lost by the unemployed and persons on part time for economic reasons as a percent of potentially available labor force hours. Includes mining, not shown separately. 2 82 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 8.0 16.6 9.7 10.4 8.6 5.0 7.5 5.6 4.2 11.4 8.0 15.6 9.7 10.9 7.9 5.1 7.7 5.6 3.5 10.4 8.0 15.8 9.8 10.7 8.5 5.6 7.6 5.6 4.1 10.8 8.0 17.3 9.3 10.1 8.0 5.6 7.7 5.5 4.0 13.2 7.8 15.9 9.2 10.0 7.9 5.3 7.7 5.4 4.1 10.7 11.1 8.6 4.9 8.2 5.5 4.2 10.1 8.8 9.0 8.5 4.9 8.3 5.5 4.1 10.6 7.5 13.3 8.4 8.3 8.5 5.8 7.6 5.8 4.4 11.5 7.5 13.2 8.4 8.5 8.2 5.5' 7.6 6.0 12.1 4.3 NOTE: The monthly data in this table have been revised to reflect seasonal experience through 1980. 5. Unemployment rates, by sex and age, seasonally adjusted A n n u al a v e ra g e 1980 1981 S e x an d a g e 1979 Total, 16 years and over...................................... 16 to 19 years ............................................ 16 to 17 years ...................................... 18 to 19 years ...................................... 20 to 24 years ............................................ 25 years and over........................................ 25 to 54 years ...................................... 55 years and over.................................. 5.8 16.1 18.1 14.6 9.0 3.9 4.1 3.0 Men, 16 years and over................................ 16 to 19 years ...................................... 16 to 17 years................................ 18 to 19 years................................ 20 to 24 years ...................................... 25 years and over.................................. 25 to 54 years................................ 55 years and over .......................... 5.1 15.8 17.9 14.2 Women, 16 years and over .......................... 16 to 19 years ...................................... 16 to 17 years................................ 18 to 19 years................................ 20 to 24 years ...................................... 25 years and over.................................. 25 to 54 years................................ 55 years and over .......................... 6. 8.6 3.3 3.4 2.9 6.8 16.4 18.3 15.0 9.6 4.8 5.2 3.2 1980 M ar. A pr. 16.6 18.8 15.2 9.9 4.2 4.6 6.3 16.2 17.7 15.1 9.9 4.4 4.8 6.9 16.4 19.0 14.5 11.3 5.0 5.3 3.3 6.9 18.2 20.4 16.7 12.5 4.7 5.1 3.3 5.6 16.0 18.2 14.5 10.3 3.7 3.9 5.8 15.2 16.5 14.5 10.7 4.0 4.3 6.7 16.3 18.8 14.4 12.3 4.7 4.9 3.3 7.4 17.2 19.5 15.6 10.3 5.5 5.9 3.2 6.9 17.4 19.4 16.1 9.4 5.0 5.4 2.9 7.2 16.5 19.3 14.8 7.1 17.7 20.0 16.1 11.5 5.0 5.4 3.3 Feb. 6.2 2.8 2.8 2.8 2.8 6.9 17.2 19.2 15.8 9.0 5.1 5.5 2.9 10.1 5.4 5.8 3.3 M ay 7.6 18.9 21.2 Ju n e July 7.5 18.3 7.6 18.7 20.5 17.4 20.0 17.6 12.1 A ug. 7.6 188 S ep t. O ct. 7.4 17.8 7.6 18.5 20.9 16.7 12.3 5.4 5.9 3.4 7.5 18,6 21.4 16.5 5.4 5.9 3.3 7.4 17.8 19,9 16.4 11.7 5.3 5.8 3.5 7.4 19.8 7.2 19.0 20.5 17.8 12.5 4.9 5.4 3.3 7.2 20.3 23.0 18.5 4.9 5.2 3.4 18.7 12.7 4.8 5.2 3.4 7.7 16.5 19.3 14.8 7.7 17.5 18.7 16.4 7.6 18.4 20.5 17.0 5.9 6,3 3.9 5.8 6.3 3.6 5.6 5.9 3.9 12.1 22.1 16.5 12.0 20.1 16.0 12.0 5.4 5.8 3.3 5.5 5.9 3.4 5.4 5.9 3.4 5.4 5.9 3.4 7.5 19.4 21.5 17.6 13.5 5.1 5.4 3.4 7.5 19.1 21.5 18.8 13.4 5.2 5.6 3.6 7.6 19.5 20.9 18.4 13.2 5.4 5.8 3.6 7.6 19.9 23.7 17.1 13.6 5.3 5.7 3.6 7.6 18.3 20.9 17.2 11.3 5.5 7.4 17.3 18.3 16.3 7.7 17.7 7.6 17.6 6.0 10.6 5.5 6.0 3.3 2.9 17.4 12.5 5.3 5.6 3.4 20.1 N ov. 12.1 21.2 21.8 16.9 13.5 5.4 3.5 18.1 13.8 5.1 5.6 3.3 7,4 19.8 22.3 17.8 13.2 5.1 5.6 3.3 7.2 16.6 18.8 15.1 7.7 17.0 19.8 15.1 7.7 17.2 20.3 15.1 5.9 6.4 3.4 7.6 18.9 6.0 16.2 10.9 5.7 6.1 20.2 15.9 10.2 5.7 6.2 3.1 3.1 5.4 5.9 3.3 10.2 10.6 10.8 5.8 6.2 3.4 D ec. 10.8 Jan. Feb. 7.4 19.0 21.0 17.5 11.9 5.3 5.7 3.5 12.8 10.8 7.3 19.3 21.4 17.9 11.8 5.1 5.5 3.6 7.1 20.1 22.1 10.8 Unemployed persons, by reason for unemployment, seasonally adjusted [Numbers in thousands] 1980 R e a s o n fo r u n e m p lo y m e n t 1981 Feb. M ar. A pr. M ay Ju n e July A ug. S e p t. O ct. N o v. D ec. Jan. Feb. 2,979 1,087 1,892 831 1,797 825 3,102 1,135 1,967 804 1,812 815 3,581 1,422 2,159 905 1,909 752 4,164 1,771 2,393 930 1,975 871 4,468 1,954 2,514 887 1,834 872 4,364 1,832 2,532 4,319 1,699 2,620 890 1,883 870 4,387 1,744 2,643 855 1,844 862 4,240 1,692 2,548 870 2,013 880 4,229 1,453 2,776 897 1,896 890 4,226 1,470 2,756 813 1,869 3,847 1,258 2,590 907 2,039 3,896 1,267 2,629 884 1,970 928 100.0 53.0 21.1 100.0 100.0 100.0 100.0 NUM BER OF UNEM PLOYED Lost last job ...................................................................................... On layoff .................................................................................... Other job iosers .......................................................................... Left last jo b ........................................................................................ Reentered labor force ........................................................................ Seekirg first jo b .................................................................................. 866 1,868 893 868 1,000 P E R C E N T D IS T R IB U T IO N Total unemployed .............................................................................. Job losers.......................................................................................... On layoff .................................................................................... Other job losers .......................................................................... Job leavers........................................................................................ Reentrants ........................................................................................ New entrants.................................................................................... 100.0 100.0 100.0 1000 100.0 100.0 100.0 100.0 46.3 16.9 29.4 12.9 27.9 50.1 19.9 30.2 12.7 26.7 10.5 52.4 22.3 30.1 11.7 249 55.4 24.2 31.2 12.8 47.5 17.4 30.1 12.3 27.7 12.5 2.9 3.0 3.4 .9 4.0 .9 1.9 11.0 11.0 22.8 10.8 54.6 22.9 31.7 54.2 21.3 32.9 55.2 21.9 33.3 23.4 23.6 10.9 23.2 31.8 10.9 25.2 4.3 4.2 4.1 4.2 4.0 10.8 11.2 11.2 10.8 10.8 11.0 53.5 18.4 35.1 11.3 24.0 54.3 18.9 35.4 10.5 24.0 4.0 .9 4.0 11.2 11.2 49.4 16.1 33.2 11.6 12.8 26.2 50.7 16.5 34.2 11.5 25.7 12.1 UNEM PLOYED AS A PERCENT OF T H E C IV IL IA N L A B O R FO R C E Job losers.......................................................................................... job leavers........................................................................................ Reentrants ........................................................................................ New entrants...................................................................................... 7. .8 1.7 .8 .8 1.7 .8 1.8 .7 .8 .8 1.8 .8 .8 1.8 .9 .8 1.8 .8 .8 1.8 8 .8 1.9 8 1.8 8 .8 1.8 8 3.6 .9 1.9 .9 3.7 .8 1.9 .9 Duration of unemployment, seasonally adjusted [Numbers in thousands] A n n u al a v e ra g e 1980 1981 W e e k s o f u n e m p lo y m e n t Less than 5 weeks.............................................. 5 to 14 weeks .................................................... 15 weeks and over ............................................ 15 to 26 weeks............................................ 27 weeks and over ...................................... Average (mean) duration, in weeks...................... 1979 1980 Feb . M ar. A pr. M ay June July A ug. S ep t. O c t. 2,869 1,892 3,208 2,411 1,829 1,028 802 11.9 3,049 2,134 1,299 794 505 10.7 3,005 2,207 1,391 796 595 3,258 2,373 1,599 931 3,714 2,589 3,281 2,812 1,777 1,024 753 11.7 3,317 2,649 1,935 1,093 842 3,255 2,533 2,150 1,239 911 12.5 3,042 2,586 2,295 1,366 929 13.0 3,186 2,500 2,292 1,256 1,036 13.3 1,202 684 518 10.9 11.0 668 11.2 1,686 980 706 10.6 11.8 N o v. D ec. Jan. Feb . 3,108 2,524 2,329 1,213 1,116 13.6 3,115 2,217 2,378 1,231 1,147 13.5 3,259 2,264 2,358 1,079 1,279 14.4 3,203 2,324 2,250 992 1,257 14.4 NOTE: The monthly data in these tables have been revised to reflect seasonal experience through 1980. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 83 EMPLOYMENT, HOURS, AND EARNINGS DATA FROM ESTABLISHMENT SURVEYS E m p l o y m e n t , h o u r s , a n d e a r n i n g s d a t a in this section are compiled from payroll records reported monthly on a volun tary basis to the Bureau of Labor Statistics and its cooperat ing State agencies by 166,000 establishments representing all industries except agriculture. In most industries, the sampling probabilities are based on the size of the establishment; most large establishments are therefore in the sample. (An estab lishment is not necessarily a firm; it may be a branch plant, for example, or warehouse.) Self-employed persons and others not on a regular civilian payroll are outside the scope of the survey because they are excluded from establishment records. This largely accounts for the difference in employment figures between the household and establishment surveys. L a b o r t u r n o v e r d a t a in this section are compiled from per sonnel records reported monthly on a voluntary basis to the Bureau of Labor Statistics and its cooperating State agencies. A sample of 40,000 establishments represents all industries in the manufacturing and mining sectors of the economy. Bureau of Labor Statistics computes spendable earnings from gross weekly earnings for only two illustrative cases: (1) a worker with no dependents and (2) a married worker with three dependents. H o u r s represent the average weekly hours of production or nonsupervisory workers for which pay was received and are different from standard or scheduled hours. O v e r tim e h o u rs represent the por tion of gross average weekly hours which were in excess of regular hours and for which overtime premiums were paid. L a b o r tu r n o v e r is the movement of all wage and salary workers from one employment status to another. A c c e s s io n r a te s indicate the average number of persons added to a payroll in a given period per 100 employees; s e p a r a tio n r a te s indicate the average number dropped from a payroll per 100 employees. Although month-to-month changes in employment can be calculated from the labor turnover data, the re sults are not comparable with employment data from the employment and payroll survey. The labor turnover survey measures changes dur ing the calendar month while the employment and payroll survey measures changes from midmonth to midmonth. Notes on the data Definitions E m p lo y e d p e r so n s day and sick pay) 12th of the month. cent of all persons ment which reports are all persons who received pay (including holi for any part of the payroll period including the Persons holding more than one job (about 5 per in the labor force) are counted in each establish them. P r o d u c tio n w o r k e r s in manufacturing include blue-collar worker supervisors and all nonsupervisory workers closely associated with production operations. Those workers mentioned in tables 14-20 in clude production workers in manufacturing and mining; construction workers in construction; and nonsupervisory workers in transporta tion and public utilities, in wholesale and retail trade, in finance, in surance, and real estate, and in services industries. These groups account for about four-fifths of the total employment on private nonagricultural payrolls. E a r n in g s are the payments production or nonsupervisory workers receive during the survey period, including premium pay for overtime or late-shift work but excluding irregular bonuses and other special payments. R e a l e a r n in g s are earnings adjusted to eliminate the effects of price change. The H o u r ly E a r n in g s I n d e x is calculated from aver age hourly earnings data adjusted to exclude the effects of two types of changes that are unrelated to underlying wage-rate developments: fluctuations in overtime premiums in manufacturing (the only sector for which overtime data are available) and the effects of changes and seasonal factors in the proportion of workers in high-wage and lowwage industries. S p e n d a b le e a r n in g s are earnings from which estimat ed social security and Federal income taxes have been deducted. The 84 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Establishment data collected by the Bureau of Labor Statistics are periodically adjusted to comprehensive counts of employment (called “benchmarks”). The latest complete adjustment was made with the re lease of June 1980 data, published in the August 1980 issue of the R e view. Consequently, data published in the R e v ie w prior to that issue are not necessarily comparable to current data. Complete comparable historical unadjusted and seasonally adjusted data are published in a Supplement to Employment and Earnings (unadjusted data from April 1977 through March 1980 and seasonally adjusted data from January 1974 through March 1980) and in E m p lo y m e n t a n d E a rn in g s, U n ite d S ta tes, 1 9 0 9 - 7 8 , BLS Bulletin 1312-11 (for prior periods). Data on recalls were shown for the first time in tables 12 and 13 in the January 1978 issue of the R eview . For a detailed discussion of the recalls series, along with historical data, see “New Series on Recalls from the Labor Turnover Survey,” E m p lo y m e n t a n d E a rn in g s, Decem ber 1977, pp. 10-19. A comprehensive discussion of the differences between household and establishment data on employment appears in Gloria P. Green, “Comparing employment estimates from household and payroll sur veys,” M o n th ly L a b o r R ev ie w , December 1969, pp. 9-20. See also B L S H a n d b o o k o f M e th o d s f o r S u r v e y s a n d S tu d ie s, Bulletin 1910 (Bu reau of Labor Statistics, 1976). The formulas used to construct the spendable average weekly earn ings series reflect the latest provisions of the Federal income tax and social security tax laws. For the spendable average weekly earnings formulas for the years 1978-80, see E m p lo y m e n t a n d E a rn in g s, March 1980, pp. 10-11. Real earnings data are adjusted using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). 8. Employment by industry, 1951-80 [Nonagricultural payroll data, In thousands] Year T o ta l C o n s tru c M a n u fa c tio n tu rin g M in in g T ra n s W h o le p o rta tio n sa le an d and G o v e rn m e n t F in an ce, W h o le s a le R etail tra d e tra d e in su r an c e , pu b lic re ta il an d real u tilitie s tra d e e s ta te S e rv ic e s S ta te T o ta l F e d e ra l 6,389 6,609 6,645 6,751 6,914 2,302 2,420 2,305 2,188 2,187 4,087 4,188 4,340 4,563 4,727 a n d lo cal .......................................................... .......................................................... .......................................................... .......................................................... .......................................................... 47,819 48,793 50,202 48,990 50,641 929 898 2,668 791 792 2,659 2,646 2,839 16,393 16,632 17,549 16,314 16,882 4,226 4,248 4,290 4,084 4,141 9,742 10,004 10,247 10,235 10,535 2,727 2,812 2,854 2,867 2,926 7,015 7,192 7,393 7,368 7,610 2,111 2,200 2,298 5,547 5,699 5,835 5,969 6,240 1956 .......................................................... 1957 .......................................................... 1958 .......................................................... 1959’ ........................................................ 1960 .......................................................... 52,369 52,853 51,324 53,268 54,189 822 828 751 732 712 3,039 2,962 2,817 3,004 2,926 17,243 17,174 15,945 16,675 16,796 4,244 4,241 3,976 4,011 4,004 10,858 10,750 11,127 11,391 3,018 3,028 2,980 3,082 3,143 7,840 7,858 7,770 8,045 8,248 2,389 2,438 2,481 2,549 2,629 6,497 6,708 6,765 7,087 7,378 7,278 7,616 7,839 8,083 8,353 2,209 2,217 2,191 2,233 2,270 5,069 5,399 5,648 5,850 6,083 1961 1962 1963 1964 1965 .......................................................... .......................................................... .......................................................... .......................................................... .......................................................... 53,999 55,549 56,653 58,283 60,765 672 650 635 634 632 2,859 2,948 3,010 3,097 3,232 16,326 16,853 16,995 17,274 18,062 3,903 3,906 3,903 3,951 4,036 11,337 11,566 11,778 12,160 12,716 3,133 3,198 3,248 3,337 3,466 8,204 8,368 8,530 8,823 9,250 2,754 2,830 2,911 2,977 7,620 7,982 8,277 8,660 9,036 8,594 8,890 9,225 9,596 10,074 2,279 2,340 2,358 2,348 2,378 6,315 6,550 1966 1967 1968 1969 1970 .......................................................... .......................................................... .......................................................... .......................................................... .......................................................... 63,901 65,803 67,897 70,384 70,880 627 613 606 619 623 3,317 3,248 3,350 3,575 3,588 19,214 19,447 19,781 20,167 19,367 4,158 4,268 4,318 4,442 4,515 13,245 13,606 14,099 14,705 15,040 3,597 3,689 3,779 3,907 3,993 9,648 9,917 10,320 10,798 11,047 3,058 3,185 3,337 3,512 3,645 9,498 10,045 10,567 11,169 11,548, 10,784 11,391 11,839 12,195 12,554 2,564 2,719 2,737 2,758 2,731 1971 1972 1973 1974 1975 .......................................................... .......................................................... .......................................................... .......................................................... .......................................................... 71,214 73,675 76,790 78,265 76,945 609 628 642 697 752 3,704 3,889 4,097 4,020 3,525 18,623 19,151 20,154 20,077 18,323 4,476 4,541 4,656 4,725 4,542 15,352 15,949 16,607 16,987 17,060 4,001 4,113 4,277 4,433 4,415 11,351 11,836 12,329 12,554 12,645 3,772 3,908 4,046 4,148 4,165 11,797 12,276 12,857 13,441 13,892 12,881 13,334 13,732 14,170 14,686 2,696 2,684 2,663 2,724 2,748 10,185 10,649 11,068 11,446 11,937 1976 1977 1978 1979 1980 .......................................................... .......................................................... .......................................................... .......................................................... .......................................................... 79,382 82,471 86,697 89,886 90,657 779 813 851 960 1,025 3,576 3,851 4,229 4,483 4,469 18,997 19,682 20,505 21,062 20,361 4,582 4,713 4,923 5,141 5,156 17,755 18,516 19,542 20,269 20,573 4,546 4,708 4,969 5,204 5,281 13,209 13,808 14,573 15,066 15,292 4,271 4,467 4,724 4,974 5,162 14,551 15,303 16,252 17,078 17,741 14,871 15,127 15,672 15,920 16,170 2,733 2,727 2,753 2,773 12,138 12,399 12,919 13,147 13,304 1951 1952 1953 1954 1955 866 2,637 10,886 1,956 2,035 2,688 2,868 6,868 7,248 7,696 8,220 8,672 9,102 9,437 9,823 'Data include Alaska and Hawaii beginning in 1959. 9. Employment by State [Nonagricultural payroll data, in thousands] S ta te Alaska1 ........................................................................ California’ .................................................................... Colorado ...................................................................... Hawaii.......................................................................... Maryland ...................................................................... Massachusetts.............................................................. Michigan ...................................................................... Mississippi’ .................................................................. Missouri’ ...................................................................... Jan. 1980 D e c . 1980 Jan . 1 9 8 1 p 1,357.3 153.5 998.6 737.9 9,733.3 1,366.9 163.9 1,028.6 749.7 9,967.3 1,355.5 160.2 ,011.0 739 7 9,817.1 1,255.2 1,409.0 250.1 603.8 3,515.7 1,266.5 1,442.4 263.2 616.5 3,711.6 1,251.6 1,420.5 254.6 608 9 3,691.6 2,126.7 403.5 329 9 4,866.7 2,149 9 2,176.2 407.7 331 9 4,879.4 2,145.1 2,154.9 402.8 322.8 4,722.2 2 105 9 1,111.3 948.3 1,205.0 1,534.7 405.6 1,097.0 956.8 1 222 3 1,6169 421.2 1,071.5 940.0 1,1999 1,603 4 409.6 1,716.8 2,696.9 3,535.9 1,769.7 838.8 1,965.1 1,665.6 2,636.4 1 ,666.1 2,609,3 3,506.1 1,744.6 830.7 1,956.1 1 1,724.2 826.4 1,925.4 S ta te Jan . 1980 D e c . 1980 274.0 6233 386.3 375 6 3,002.0 280 7 634.1 403 5 391 6 3,060.5 274.9 619.8 396 3 382 5 2,994.9 462.9 7 086 0 2,371.9 238 0 4 398 1 470.8 7 269 9 2,416 1 248 1 4 420 1 463.4 7 093 9 2 380 6 241 1 4 306 6 1120 1,039.9 4 789 0 392 0 1 177 4 1 159 6 1,027.8 4 788 7 404 3 1 195 5 1 150 8 1,007.8 4 677 9 392 7 1 175 7 234 2 1,740.0 57102 542.8 197.6 234 5 1,736.8 027 2 564 4 204.0 6 231 5 1,702.1 5 997 8 552 6 203.1 2,150.4 1,613.9 650.1 1,959.3 207.2 2,112.5 Wyoming ................................................................ 2,097.2 1,584.5 638.3 1,926.0 198.8 Virgin Islands1 ........................................................ 37.1 36.9 36.3 Nebraska................................................................ New Jersey ............................................................ New Mexico ’ .......................................................... 1 Oregon .................................................................. Utah Virginia.................................................................... Washington ............................................................ West Virginia ’ ........................................................ Jan . 1981 p 633.5 1,913.2 204.8 ' Revised series, not strictly comparable with previously published data. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 85 MONTHLY LABOR REVIEW April 1981 • Current Labor Statistics: Establishment Data 10. Employment by industry division and major manufacturing group [Nonagricultural payroll data, In thousands] 19 31 1980 A n n u al a v e ra g e In d u s try d iv is io n a n d g ro u p TOTAL M IN IN G .................................................................................. C O N S T R U C T IO N 1980 Feb. M ar. A pr. M ay Ju n e July A ug. 89,886 90,657 89,781 90,316 90,761 90,849 91,049 89,820 90,072 4,483 4,469 4,109 4,150 4,311 4,471 4,611 4,633 4,712 4,690 4,700 4,618 4,431 4,078 3,969 14,093 19,754 13,657 20,044 13,947 20,269 14,182 20,302 14,204 20,368 14,260 20,316 14,199 20,158 14,053 20,146 14,065 12,065 8,307 11,774 8,025 11,827 8,075 12,028 8,281 12,195 8,430 12,186 8,413 12,112 8,341 12,085 8,329 689.2 466.6 667.4 1,081.8 1,594.5 2,449.6 2,103.5 1,857.9 695.5 422.2 679.8 682.8 473.8 475.8 654.3 667.2 1,111.9 1,124.6 1,615.6 1,614.6 2,475.2 2,492.5 2,134.9 2,143.9 1,912.2 1,888.4 700.6 702.2 410.1 421.2 667.7 474.2 636.2 1,127.0 1,598.5 2,491.4 2,143.4 1,870.2 701.3 402.2 667.9 473.8 632.0 1,127.3 1,598.2 2,497.2 2,143.5 1,842.1 698.5 404.3 8,130 5,786 8,046 5,712 8,061 5,736 1,667.2 74.7 858.3 1,281.7 691.7 1,291.6 1,107.6 207.8 710.3 708.3 238.8 241.5 1,624,0 71.9 853.2 1,266.9 687.5 1,282.6 1,106.5 207.8 708.5 236.7 1,615.7 69.8 856.9 1,282.7 687.5 1,289.0 1,108.4 203.1 709.3 238.9 12,215 8,468 12,599 8,869 12,647 8,909 12,414 8,672 12,150 8,409 Lumber and wood products .......................... Furniture and fixtures.................................... Stone, clay, and glass products .................... Primary metal industries................................ Fabricated metal products ............................ Machinery, except electrical.......................... Electric and electronic equipment.................. Transportation equipment.............................. Instruments and related products .................. Miscellaneous manufacturing ........................ 766.1 499.3 709.7 1,250.2 1,723.7 2,481,6 2,124.3 2,082.8 688.9 445.6 686.9 473.7 667.9 1,133.3 1,627.1 2,488.8 2,126.3 1,889.8 699.7 422.0 718.9 494.6 674.7 1,205.1 1,699,4 2,536.5 2,157.7 1,983.1 700.5 428.8 716.9 494.1 679.0 1,203.7 1,703.8 2,539.9 2,167.7 2,005.6 703.6 432.9 678.4 488.7 675.5 1,193.8 1,671.4 2,523.5 2,156.2 1,891.1 702.2 433.0 654.8 469.1 8,290 5,965 8,146 5,809 8,131 5,809 8,146 5,818 8,119 5,794 1,728.1 69.9 888.5 1,312.5 706.7 1,239.5 1,110.7 775.6 248.0 1,690.4 69.0 863.8 1,296.5 693.9 1,271.7 ,112.6 197.3 710.7 240.1 1,644.1 67.1 884.6 1,305.8 701.9 1,270.4 ,112.1 155.9 746.3 242.6 1,641.1 64.4 886.9 1,318.4 701.8 1,272.1 1,118.1 153.1 746.5 243.4 5,141 5,156 5,130 20,269 20,573 20,155 W H O L E S A L E A N D R E T A IL T R A D E W HO LESALE TRADE R E T A IL T R A D E F IN A N C E , IN S U R A N C E , A N D R E A L E S T A T E S E R V IC E S GOVERNMENT State and local ............................................ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1,068 1,035 1,030 12,772 9,120 T R A N S P O R T A T IO N A N D P U B L IC U T IL IT IE S 90,147 1,067 1,049 Production workers................................ Apparel and other textile products ................ Paper and allied products ............................ Printing and publishing.................................. Chemicals and allied products ...................... Petroleum and coal products ........................ Rubber and miscellaneous plastics products Leather and leather products ........................ 90,098 1,064 1,039 1,024 20,250 14,172 Food and kindred products............................ Tobacco manufactures ................................ 91,846 1,055 91,332 1,006 20,533 14,466 Production workers................................ 91,693 90,729 996 20,793 14,727 N o n d u ra b le g o o d s F e b .P N ov. 987 20,730 14,678 D u ra b le g o o d s J a n .p O c t. 1.025 20,361 14,277 Production workers................................ 210.0 1 1 20,201 668.0 666.8 438.1 460.8 666.2 656.0 1,029 D ec. S ep t. 960 21,062 15,085 M A N U F A C T U R IN G 86 1979 1,112.9 1,598.6 2,486.1 ,102.2 1,847.0 702.9 420.1 1,055.5 1,538.4 2,440.2 2,066.5 1,810.2 698.3 404.0 683.0 454.6 663.2 1,059.6 1,567.6 2,417.8 2,080.7 1,785.4 697.8 417.6 5,763 8,136 5,786 7,980 5,632 8,217 5,872 8,241 5,901 1,626.2 62.9 882.1 1,304.2 698.8 1,270.4 ,120.6 173.6 737.2 243.3 1,638.5 62.7 870.6 1,299.0 692.4 1,267.8 1,119.5 203.4 702.4 243.2 1,676.8 64.6 853.2 1,310.5 695.0 1,271.3 ,122.2 209.1 688.5 244,7 1,709.5 63.9 820.6 1,236.9 682.3 1,264.5 ,112.0 1,790.5 75.5 854.7 1,309.2 659.3 218.9 1,795.3 71.3 854.1 1,299.9 688.7 1,264.3 1,108.4 212.4 680.4 242.6 5,143 5,147 5,167 5,185 5,145 20,226 20,373 20,497 20,562 20,506 1 668.1 1,149.8 1,619.8 2,509.3 ,120.2 1,835.1 699.4 424.6 2 8,100 2 1 1 212.0 12,100 8,343 686.9 470.3 665.5 1,093.1 1,604.6 2,456.7 2,119.3 1,885.7 695.9 422.1 8,202 5,861 8,173 5,830 1,267.9 1,106.3 210.9 6958 241.1 1,738.8 76.4 856.8 1,307.5 690.7 1,272.2 1,104.9 210.4 703.4 240.6 1,696.6 75.6 859.4 1,302.3 691.6 1,281.0 1,106.1 5,144 5,170 5,178 5,158 5,163 5,081 5,080 20,579 20,692 20,708 20,937 21,313 20,575 20,403 5,313 5,318 5,273 5,280 688.6 210.2 5,204 5,281 5,250 5,269 5,265 5,263 5,287 5,278 5,284 5,291 5,313 15,066 15,292 14,905 14,957 15,108 15,234 15,275 15,228 15,295 15,401 15,395 15,624 15,995 15,302 15,123 5,232 5,194 5,204 5,215 5,229 5,223 5,223 4,974 5,162 5,061 5,085 5,104 5,137 5,201 5,229 17,078 17,741 17,317 17,478 17,636 17,747 17,846 17,973 17,966 17,915 17,949 17,951 17,978 17,790 17,928 15,550 2,949 12,601 15,366 2,862 12,504 15,764 2,754 13,010 16,252 2,774 13,478 16,391 2,776 13,615 16,352 2,782 13,570 16,126 2,758 13,368 16,320 2,734 13,586 15,920 2,773 13,147 16,170 2,866 13,304 16,292 2,803 13,489 16,445 2,869 13,576 16,651 3,103 13,548 16,556 2,963 13,593 16,394 2,995 13,399 11. Employment by industry division and major manufacturing group, seasonally adjusted [Nonagricultural payroll data, in thousands] 1980 1981 In d u s try d iv is io n a n d g ro u p TOTAL M IN IN G ................................................................................................................................. C O N S T R U C T IO N ............................................................................................................. J a n .p F e b .P 91,125 91,499 91,550 1,072 1,084 1,090 Feb. M ar. A pr. M ay Ju n e July A ug. S e p t. O ct. N ov. 91,186 91,144 90,951 90,468 90,047 89,867 90,142 90,384 90,710 90,961 1,054 4,475 4,508 4,608 4,500 20,370 14,260 1,007 1,009 1,012 1,023 1,029 1,013 1,013 1,028 1,037 4,659 4,529 4,467 4,436 4,379 4,322 4,359 4,404 4,442 D ec. 20,957 14,871 20,938 14,850 20,642 14,550 20,286 14,186 20,014 13,931 19,828 13,759 19,940 13,872 20,044 13,972 20,157 14,065 20,282 14,179 20,312 14,195 20,350 14,226 12,715 8,967 12,707 8,961 12,442 8,686 12,140 8,386 11,947 8,205 11,819 8,084 11,860 8,123 11,955 Production workers ................................................................ 8,212 12,043 8,288 12,146 8,381 12,160 8,386 12,192 8,409 12,198 8,424 Lumber and wood products............................................................ Furniture and fixtures .................................................................... Stone, clay, and glass products...................................................... Primary metal industries ................................................................ Fabricated metal products.............................................................. Machinery, except electrical .......................................................... Electric and electronic equipment.................................................... Transportation equipment .............................................................. Instruments and related products.................................................... Miscellaneous manufacturing.......................................................... 745 495 705 1,214 1,711 2,529 2,168 2,006 702 440 737 494 700 1,209 1,711 2,530 2,176 2,006 705 439 689 491 680 1,193 1,678 2,518 2,167 1,885 703 438 654 472 663 1,144 1,620 2,517 2,127 1,819 700 424 648 461 647 1,096 1,584 2,476 2,094 1,831 696 414 650 449 641 1,049 1,551 2,448 2,079 1,839 698 415 662 456 648 1,059 1,569 2,437 2,083 1,840 697 409 674 464 655 1,074 1,587 2,452 2,091 1,851 697 410 677 466 656 1,096 1,595 2,469 2,107 1,873 697 407 683 469 661 1,119 1,606 2,475 692 474 660 1,135 1,611 2,490 2,154 701 415 693 474 662 1,135 1,608 2,484 2,150 1,865 703 418 N o n d u ra b le g o o d s ..................................................................................................... 8,242 5,904 8,231 5,889 8,200 8,146 5,800 8,067 5,726 8,009 5,675 8,080 5,749 8,089 5,760 8,114 5,777 8,136 5,798 8,152 5,809 8,158 5,817 8,172 5,836 1,713 1,704 1,691 70 869 1,291 692 1,268 1,677 71 843 1,287 685 1,269 1,683 69 833 1,276 680 1,266 1,103 207 663 229 1,690 67 851 1,296 682 1,266 1,672 1,682 69 856 1,292 690 1,272 1,105 209 699 240 1,686 1,684 70 857 1,291 693 1,284 1,679 70 858 1,290 694 1,285 1,115 213 713 241 1,683 71 860 1,290 695 1,292 1,117 209 714 241 M A N U F A C T U R IN G Production workers ................................................................ D u ra b le g o o d s ............................................................................................................. Production workers ................................................................ Food and kindred products ............................................................ Tobacco manufactures .................................................................. Textile mill products ...................................................................... Apparel and other textile products .................................................. Paper and allied products .............................................................. Printing and publishing.................................................................... Chemicals and allied products........................................................ Petroleum and coal products.......................................................... Rubber and miscellaneous plastics products.................................... Leather and leather products.......................................................... T R A N S P O R T A T IO N A N D P U B L IC U T IL IT IE S .................................................... W H O L E S A L E A N D R E T A IL T R A D E W HO LESALE TR A D E R E T A IL T R A D E 1,313 709 1,273 1,121 161 751 245 68 888 1,316 708 1,274 1,123 157 749 244 1,690 69 884 1,302 702 1,272 1,123 175 740 243 1,120 1,112 203 703 239 205 681 237 1,100 208 680 240 68 851 1,299 686 1,269 1,104 208 692 240 1,901 701 411 71 856 1,291 692 1,278 1,108 209 705 240 472 660 1,133 1,608 2,480 2,135 1,868 1,112 210 711 240 1,866 701 415 5,198 5,202 5,178 5,167 5,134 5,114 5,129 5,124 5,147 5,132 5,137 5,148 5,147 20,637 20,610 20,531 20,487 20,459 20,506 20,589 20,620 20,641 20,660 20,638 20,782 20,892 5,302 5,301 5,286 5,268 5,245 5,247 5,263 5,280 5,292 5,297 5,302 5,310 5,333 15,335 15,309 15,245 15,219 15,214 15,259 15,326 15,340 15,349 15,363 15,336 15,472 15,559 .................................................... 5,101 5,115 5,119 5,137 5,150 5,167 5,180 5,194 5,214 5,225 5,245 5,265 5,275 ........................................................................................................................... 17,540 17,580 17,618 17,659 17,652 17,760 17,788 17,861 17,913 17,969 18,068 18,135 18,164 16,087 2,826 13,261 16,161 13,275 16,384 3,115 13,269 16,273 2,960 13,313 16,230 2,951 13,279 16,157 2,893 13,264 16,144 2,828 13,316 16,109 2,765 13,344 16,159 2,788 13,371 16,164 2,790 13,374 16,145 2,789 13,356 16,127 2,786 13,341 16,112 2,753 13,359 F IN A N C E , IN S U R A N C E , A N D R E A L E S T A T E S E R V IC E S 68 888 5,864 2,120 688 GOVERNMENT Federal ........................................................................................ Stale and local.............................................................................. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2,886 MONTHLY LABOR REVIEW April 1981 • Current Labor Statistics: Establishment Data 12. Labor turnover rates in manufacturing, 1977 to date [Per 100 employees] Y ear A nnual a v e ra g e Jan. Feb. M ar. A pr. M ay June July A ug. S e p t. O c t. Nov. D ec. 4.3 4.4 4.3 3.8 5.3 5.4 5.0 4.5 4.6 4.9 4.5 4.3 3.9 4.3 4.1 3.6 3.1 3.3 3.0 2.7 2.4 2.4 3.0 3.3 3.1 2.1 4.0 4.2 3.7 2.5 3.5 3.9 3.4 3.0 3.5 3.1 .9 1.0 .9 1.4 .9 .9 1.7 4.3 4.1 4.3 4.2 5.1 5.3 5.7 4.8 1.9 3.1 3.5 3.3 T o ta l a c c e s s io n s 1977 1978 1979 1980 1981 .............................................. .............................................. .............................................. .............................................. .............................................. 4.0 4.1 4.0 3.5 1977 1978 1979 1980 1981 .............................................. .............................................. .............................................. .............................................. .............................................. 2.8 1977 1978 1979 1980 1981 .............................................. .............................................. .............................................. .............................................. .............................................. .9 .7 .7 1977 1978 1979 1980 1981 .............................................. .............................................. .............................................. .............................................. .............................................. 3.7 3.8 4.0 3.8 ” 3.4 3.7 3.2 3.4 3.3 4.0 3.8 3.8 3.5 3.8 4.0 3.9 3.1 4.6 4.7 4.7 3.4 2.1 2.2 2.5 2.2 2.6 2.7 2.8 2.7 2.9 2.9 3.5 3.6 3.6 4.9 4.9 4.8 3.9 2.2 2.2 N e w h ire s 3.1 2.9 2.1 2.2 2.5 2.8 2.4 ” 1.8 2.3 2.1 2.1 1.1 .8 .9 .8 .8 .8 1.0 3.7 3.9 3.8 2.4 2.6 2.2 2.2 2.6 2.2 1.6 .8 .7 .8 ,6 .6 .5 .5 .9 .5 .5 1.4 .6 6 .7 1.1 4.9 4.9 4.7 4.1 3.8 4.1 4.2 3.7 3.4 3.5 3.8 3.0 3.4 3.4 3.5 3.1 1.5 1.7 1.2 1.3 1.1 1.6 1.7 1.5 1.2 R ecalls 1.1 1.2 1.0 .9 1.1 1.3 .7 .7 .9 .8 .8 .7 .9 .7 3.4 3.5 3.6 3.7 3.4 3.6 3.7 4.7 .8 .8 .7 .7 1.2 .8 ” 1.4 T o ta l s e p a ra tio n s 3.8 3.9 4.0 4.0 3.9 3.6 3.8 4.1 ” 3.5 3.4 3.1 3.2 3.5 3.5 3.7 3.8 4.8 3.5 3.8 3.9 4.4 Q u its 1977 1978 1979 1980 1981 .............................................. .............................................. .............................................. .............................................. .............................................. 1.8 2.1 2.0 1.5 1.4 1.5 1.6 1.8 1.9 1.6 1.3 1.4 1.8 1.6 1.2 1.6 1.5 1.7 1.9 1.9 2.0 2.0 2.1 2.1 2.2 2.1 2.1 2.0 1.5 1.5 1.4 1.4 2.8 1.9 2.3 3.1 2.7 1.9 2.2 2.1 1.4 1.6 1.1 .9 L a y o ffs 1977 1978 1979 1980 1981 13. .............................................. .............................................. .............................................. .............................................. .............................................. 1.1 .9 1.1 1.7 1.4 1.0 .9 .8 1.4 .9 1.2 1.1 1.6 .8 1.2 .8 .9 .8 .7 .7 2.5 .9 2.3 1.3 .8 1.5 1,1 1.4 2.0 .7 .9 2.2 1.0 .8 1.3 1.7 1.1 .8 1.1 1.1 .9 1.2 1.4 1.5 1.1 1.0 1.5 1.4 1.7 1.5 1.3 1.6 ” 1.5 Labor turnover rates in manufacturing, by major industry group [Per 100 employees] A c c e s s io n ra te s M a jo r in d u s try g ro u p M A N U F A C T U R IN G Seasonally adjusted.............. D u ra b le g o o d s .............................................. Lumber and wood products.......... Furniture and fixtures .................. Stone, clay, and glass products . . . Primary metal industries .............. Fabricated metal products............ Machinery, except electrical.......... Electric and electronic equipment .. Transportation equipment ............ Instruments and related products .. Miscellaneous manufacturing........ N o n d u ra b le g o o d s Food and kindred products .......... Tobacco manufacturers................ Textile mill products .................... Apparel and other products.......... Paper and allied products ............ Printing and publishing.................. Chemicals and allied products . . . . Petroleum and coal products........ Rubber and miscellaneous plastics products...................... Leather and leather products........ 88 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis T o ta l S e p a ra tio n ra te s N e w h ire s R ecalls T o ta l Q u its L a y o ffs Jan. D ec. Jan. Jan. D ec. Jan. Jan. D ec. Jan. Jan. D ec. Jan. Jan. D ec. Jan. Jan. D ec. Jan. 1980 1980 1981” 1980 1980 1981” 1980 1980 1981” 1980 1980 1981” 1980 1980 1981” 1980 1980 1981” 3.4 3.5 2.4 1.1 0.8 1.4 4.1 4.1 3.1 3.3 3.5 3.5 0.9 1.5 1.2 1.6 1.5 1.3 1.6 1.1 1.5 1.9 3.9 2.6 1.4 1.5 4.9 3.2 4.7 2.5 2.9 1.7 1.0 2.0 1.8 1,0 .5 1.1 .9 1.0 1.0 1.7 4.9 4.8 3.1 4.4 .7 1.4 1.3 3.8 3.9 2.2 3.5 4.7 4.6 3.6 3.1 4.0 2.9 3.1 3.4 3.0 5.7 1.9 4.2 4.8 3.9 4.5 6.8 2.7 3.4 1.6 1.9 4.8 7.0 3.6 2.8 2.0 2.9 3.2 4.6 4.2 3.8 3.2 3.3 2.8 2.1 2.9 3.6 1.9 1.8 2.7 1.2 2.1 2.1 1.7 1.5 2.5 2.2 6.1 1.5 2.3 3.1 3.7 4.5 2.8 2.9 1.6 2.3 1.9 1.7 2.5 3.4 5.0 2.0 3.0 1.7 2.5 1.1 1.4 2.6 3.4 2.6 3.2 5.6 2.5 3.0 2.5 3.5 4.0 1.5 1.2 1.8 2.2 2.2 1.0 1.6 1.6 2.7 1.7 2.6 1.1 1.5 .5 1.0 1.1 1.7 1.0 1.5 1.0 1.4 6 1.2 1.7 1.5 2.1 1.5 2.2 1.8 2.4 1.6 1.4 1.5 .9 1.9 2.3 3.0 1.8 2.2 2.8 1.2 1.6 .8 1.1 1.2 2.2 1.2 1.8 3.9 7.5 3.1 4.4 1.4 2.3 2.3 3.5 1.0 1.6 .7 1.5 1.6 1.2 .5 .5 1.4 .4 2.4 1.2 1.6 1.9 .7 2.5 1.0 .5 .3 .2 1.4 2.3 .7 1.0 1.0 .8 1.5 .7 .5 .5 .6 .2 .8 1.4 1.6 1.2 2.2 2.0 1.5 .9 .8 .4 3.7 .9 1.4 1.3 .4 1.4 .7 2.4 2.8 .6 .5 .2 .2 1.0 1.0 1.8 6.0 3.3 5.3 3.8 5.1 2.6 2.1 3.8 2.5 2.9 6.2 2.5 1.5 5.8 2.2 6.1 4.4 3.8 2.8 3.4 4.8 2.5 6.0. 4.5 4.4 5.8 2.7 3.3 6.1 3.9 2.6 3.9 5.6 .5 .3 1.6 2.1 2.0 3.4 5.3 2.7 3.2 1.5 1.9 1,3 3.8 5.4 7.1 3.5 5.9 3.9 5.8 1.1 .6 5.3 2.4 3.0 1.4 1.6 1.4 2.4 2.5 1.4 .7 1.6 1.2 1.4 .9 1.4 2.0 2.0 2.4 1.0 2.5 2.9 1,0 1,9 .7 .7 2.1 3.3 .8 .3 ,8 .5 .7 .4 .7 1.1 1.2 1.5 .3 1.1 1.5 .5 1.4 .4 .5 1.1 1.8 1.5 1.6 1.9 1.6 2.2 .9 1.7 .6 .5 1.4 2.5 2.6 1.3 2.6 1.6 1.9 .8 1.0 3.0 .4 3.1 1.5 2.7 2.7 .8 2.0 .9 .8 .3 ,6 2.1 2.7 2.8 1.3 3.1 1.6 1.6 .6 .8 1.4 .3 3.9 1.2 2.2 1.1 3.3 1.3 1.8 .9 1.0 .5 3.4 2.1 1.6 4.0 3.0 .9 3.2 1.4 2.9 1.0 .5 1.0 1.0 1.2 .8 .3 .8 1.7 3.4 1.7 2.5 2.3 14. Hours and earnings, by industry division, 1950-80 [Gross averages, production or nonsupervisory workers on nonagricultural payrolls] Year A v e ra g e A v e ra g e A v e ra g e A v e ra g e A v e ra g e A v e ra g e A v e ra g e A v e ra g e A v e ra g e w e e k ly w e e k ly h o u rly w e e k ly w e e k ly h o u rly w e e k ly w e e k ly ho u rly w e e k ly w e e k ly h o u rly h o u rs e a rn in g s e a rn in g s h o u rs e a rn in g s e a rn in g s h o u rs ea rn in g s ea rn in g s h o u rs e a rn in g s 40.5 $1.440 2.13 2.28 2.39 2.45 63.34 66.75 70,47 70.49 75.30 40.6 40.7 40.5 39.6 40.7 1.56 1.64 1.74 1.78 1.85 37.5 37.0 36.8 37.0 36.7 2.57 2.71 2.82 2.93 3.07 78.78 81.19 82.32 88.26 89.72 40.4 39.8 39.2 40.3 39.7 2.10 118.08 122.47 127.19 132.06 138.38 36.9 37.0 37.3 37.2 37.4 3.20 3.31 3.41 3.55 3.70 92.34 96.56 99.23 102.97 107.53 39.8 40.4 40.5 40.7 41.2 2.32 2.39 2.45 2.53 2.61 3.05 3.19 3.35 3.60 3.85 146.26 154.95 164.49 181.54 195.45 37.6 37.7 37.3 37.9 37.3 3.89 4.11 4.41 4.79 5.24 112.19 114.49 122.51 129.51 133.33 41.4 40.6 40.7 40.6 39.8 2.71 2.82 3.01 3.19 3.35 42.4 42.6 42.4 41.9 41.9 4.06 4.44 4.75 5.23 5.95 211.67 221.19 235.89 249.25 266.08 37.2 36.5 36.8 36.6 36.4 5.69 6.06 6.41 6.81 7.31 142.44 154.71 166.46 176.80 190.79 39.9 40.5 40.7 40.0 39.5 3.57 3.82 4.09 4.42 4.83 42.4 43.4 43.4 43.0 43.2 6.46 6.94 7.67 8.50 9.18 283.73 295.65 318.69 342.99 367.78 36.8 36.5 36.8 37.0 37.0 7.71 209.32 228.90 249.27 268.94 288.62 40.1 40.3 40.4 40.2 39.7 5.22 5.68 6.17 6.69 7.27 37.4 1.93 2.20 76.96 82.86 86.41 88.91 90.90 38.1 38.9 37.9 37.2 37.1 40.8 40.1 38.9 40.5 40.4 2.33 2.45 2.47 2.56 2.60 96.38 100.27 103.78 108.41 112.67 106.92 110.70 114.40 117.74 123.52 40.5 41.0 41.6 41.9 42.3 2.64 2.70 2.75 2.81 2.92 2.85 3.04 3.23 130.24 135.89 142.71 154.80 164.40 42.7 42.6 42.6 43.0 42.7 36.9 37.0 36.9 36.5 36.1 3.45 3.70 3.94 4.24 4.53 172.14 189.14 201.40 219.14 249.31 36.1 36.0 35.8 35.6 35.3 4.86 5.25 5.69 6.16 273.90 301.20 332.88 365.50 396.58 $1.335 $67.16 37.9 .................. .................. .................. .................. .................. 57.86 60.65 63.76 64.52 67.72 39.9 39.9 39.6 39.1 39.6 1.45 1.52 1.61 1.65 1.71 74.11 77.59 83.03 82.60 89.54 38.4 38.6 38.8 38.6 40.7 1956 .................. 1957 .................. 1958 .................. 1959' ................ 1960 .................. 70.74 73.33 75.08 78.78 80.67 39.3 38.8 38.5 39.0 38.6 1.80 1.89 1.95 95.06 98.25 96.08 103.68 105.04 1961 1962 1963 1964 1965 .................. .................. .................. .................. .................. 82.60 85.91 88.46 91.33 95.45 38.6 38.7 38.8 38.7 38.8 1966 1967 1968 1969 1970 .................. .................. .................. .................. .................. 98.82 101.84 107.73 114.61 119.83 38.6 38.0 37.8 37.7 37.1 2.56 1971 1972 1973 1974 1975 .................. .................. .................. .................. .................. 127.31 136.90 145.39 154.76 163.53 1976 1977 1978 1979 1980 .................. .................. .................. .................. .................. 175.45 189.00 203.70 219.30 235.10 2.09 2.14 2.22 2.28 2.36 2.46 2.68 6.66 M a n u fa c tu rin g $58.32 $69.68 39.8 2.02 A v e ra g e C o n s tru c tio n $1.772 $53.13 1951 1952 1953 1954 1955 e a rn in g s M in in g T o ta l p riv a te 1950 .................. A v e ra g e A v e ra g e 2.01 2.14 2.14 $1.863 2.02 8.10 8.66 9.27 9.94 1.95 2.04 2.19 2.26 F in a n c e , in s u ra n c e , and T ra n s p o rta tio n a n d pub lic W h o le s a le a n d re ta il tra d e u tilities S e rv ic e s re a l e s ta te 1950 $44.55 40 5 $1.100 $50.52 37.7 $1.340 1951 1952 1953 1954 1955 47.79 49 20 51.35 53.33 55 16 40.5 40.0 39.5 39.5 39.4 1.18 1.23 1.30 1.35 1.40 54.67 57.08 59.57 62.04 63.92 37.7 37.8 37.7 37.6 37.6 1.45 1.51 1.58 1.65 1.70 1956 1957 1958 1959 1 1960 57 48 59 60 61.76 64 41 1.47 1.54 1.60 66.01 39.1 38 7 38 6 38.8 38.6 369 36.7 37.1 37.3 37.2 1.78 1.84 1.89 1.95 1.71 65.68 67.53 70.12 72.74 75.14 2.02 1961 1962 1963 1964 .................. 1965 .................. 38 3 38.2 38.1 37.9 37.7 1.76 1.83 1 89 1.97 2.04 77.12 80.94 84.38 85.79 88.91 36.9 37.3 37.5 37.3 37.2 2.09 2.17 2.25 2.30 2.39 $70.03 73.60 36.1 35.9 $1.94 2.05 $118.78 125.14 41.1 41.3 $2.89 3.03 67 41 69 91 72.01 74.66 76.91 1.66 1966 1967 1968 1969 1970 .................. .................. .................. .................. .................. 128.13 130.82 138.85 147.74 155.93 41.2 40.5 40.6 40.7 40.5 3.11 3.23 3.42 3.63 3.85 79.39 82.35 87.00 91.39 96.02 37.1 36.6 36.1 35.7 35.3 2.14 2.25 2.41 2.56 2.72 92.13 95.72 101.75 108.70 112.67 37.3 37.1 37.0 37.1 36.7 2.47 2.58 2.75 2.93 3.07 77.04 80.38 83.97 90.57 96.66 35.5 35.1 34.7 34.7 34.4 2.17 2.29 2.42 2.61 2.81 1971 1972 1973 1974 1975 .................. .................. .................. .................. .................. 168.82 187.86 203.31 217.48 233.44 40.1 40.4 40.5 40.2 39.7 4.21 4.65 5.02 5.41 5.88 101.09 106.45 111.76 119.02 126.45 35.1 34.9 34.6 34.2 33.9 2.88 3.05 3.23 3.48 3.73 117.85 122.98 129.20 137.61 148.19 36.6 36.6 36.6 36.5 36.5 3.22 3.36 3.53 3.77 4.06 103.06 110.85 117.29 126.00 134.67 33.9 33.9 33.8 33.6 33.5 3.04 3.27 3.47 3.75 4.02 1976 1977 1978 1979 1980 .................. .................. .................. .................. .................. 256.71 278.90 302.80 325.98 352.04 398 39.9 40.0 39.9 39.6 6.45 6.99 7.57 8.17 8.89 133.79 142.52 153.64 164.96 175.91 33.7 33.3 32.9 32.6 32.1 3.97 4.28 4.67 5.06 5.48 155.43 165.26 178.00 190.77 209.24 36.4 36.4 36.4 36.2 36.2 4.27 4.54 4.89 5.27 5.78 143.52 153.45 163.67 175.27 190.71 33.3 33.0 32.8 32.7 32.6 4.31 4.65 4,99 5.36 5.85 ’ Data include Alaska and Hawaii beginning in 1959. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 89 MONTHLY LABOR REVIEW April 1981 • Current Labor Statistics: Establishment Data 15. Weekly hours, by industry division and major manufacturing group [Gross averages, production or nonsupervisory workers on private nonagricultural payrolls] 1981 1980 A n n u al a v e ra g e In d u s try d iv is io n an d g ro u p D ec. 35.3 35.3 35.6 35.0 34.9 43.5 43.5 44.1 43.7 42.8 36.8 37.1 36.3 34.6 40.2 3.1 40.8 3.3 39.9 2.9 39.5 40.7 3.1 41.5 3.4 40.4 2.9 39.9 39.2 38.5 41.3 39.9 40.5 39.2 38.4 41.4 40.8 40.9 39.6 39.6 41.6 41.6 41.6 38.7 38.0 40.3 41.2 40.4 37.8 38.1 39.8 40.6 40.0 41.0 39.7 40.7 40.1 39.1 40.7 39.9 41.1 40.3 38.9 41.3 40.4 41.7 40.9 39.1 42.2 41.0 43.1 41.2 39.5 41.2 40.1 41.2 40.5 38.6 40.9 39.5 40.2 40.0 38.7 38.9 2.9 39.1 3.0 39.1 2.9 39.3 3.0 39.8 3.1 39.1 2.9 38.8 39.9 36.5 38.5 35.3 41.4 40.3 36.8 39.2 35.4 41.8 40.3 38.2 39.8 35.2 42.4 39.7 40.1 39.9 35.4 42.2 40.1 40.0 40.3 35.4 42.8 40.3 38.1 40.8 35.9 43.7 40.0 38.4 39.8 35.1 43.0 39.4 38.3 39.7 35.0 42.6 36.8 40.7 42.7 386 36.4 37.2 40.9 42.2 40.0 36.6 37.3 41.3 43.4 40.3 36.2 37.2 41.4 43.7 40.7 36.5 37.2 42.0 43.6 41.1 36.3 38.1 42.1 43.3 41.6 36.9 37.1 41.3 42.6 41.1 36.5 37.0 41.4 42.4 40.3 36.9 O ct. 35.5 35.3 43.1 43.5 37.3 37.9 37.9 39.3 2.7 39.7 3.0 39.8 2.9 39.1 2.3 39.7 40.2 2.9 40.3 2.9 38.4 37.3 41.0 39.1 40.1 38.2 36.2 40.3 38.6 39.2 39.2 37.6 40.7 39.0 40.0 39.3 38.3 41.1 39.9 40.5 40.8 39.3 39.9 40.3 38.2 40.8 39.4 39.9 40.5 38.3 40.0 38.5 39.5 39.6 37.8 40.4 39.2 40.0 39.9 38.5 38.7 2.7 38.7 2.5 38.8 2.5 38.5 39.0 37.7 40.9 35.4 42.4 38.9 38.2 39.9 35.3 42.2 39.7 38.7 39.8 35.3 41.6 39.6 38.3 39.6 35.6 41.7 37.0 41.6 39.7 39.9 36.8 37.2 41.7 39.4 40.0 36.4 36.8 41.6 41.1 39.7 36.7 36.9 41.3 42.3 39.0 37.0 36.7 41.2 42.3 39.3 37.4 1980 Feb. T O T A L P R IV A T E ......................................................... 35.6 35.3 35.1 35.2 35.0 35.0 35.3 35.3 M I N I N G ..................................................................................... 43.0 43.2 43.2 43.4 42.8 42.7 43.2 41.9 C O N S T R U C T IO N 37.0 37.0 35.7 36.2 36.7 36.9 37.9 37.7 M A N U F A C T U R IN G 40.2 3.3 39.7 39.8 2.9 39.8 3.0 39.4 2.7 39.3 2.5 39.4 2.5 38.8 2.4 40.8 3.5 40.2 Overtime hours...................................... 40.3 3.0 40.3 3.1 39.9 2.7 39.7 2.5 39.8 2.4 Lumber and wood products .......................... Furniture and fixtures .................................... Stone, clay, and glass products...................... Primary metal industries................................ Fabricated metal products ............................ 39.4 38.7 41.5 41.4 40.7 38.6 38.1 40.8 40.1 40.4 38.5 38.4 40.1 40.7 40.4 38.3 38.5 40.7 40.7 40.6 37.1 37.9 40.4 40.6 40.2 37.6 37.3 40.6 39.3 39.9 Machinery except electrical............................ Electric and electronic equipment .................. Transportation equipment.............................. Instruments and related products .................. Miscellaneous manufacturing ........................ 41.8 40.3 41.1 40.8 388 41.1 39.8 40.6 40.5 38.7 41.5 40.2 40.4 40.8 38.6 41.5 40.0 40.4 40.6 388 41.1 39.6 39.8 40.4 38.4 39.3 3.1 39.0 38.9 Overtime hours..................................... 38.9 2.9 Food and kindred products............................ Tobacco manufactures.................................. Textile mill products...................................... Apparel and other textile products.................. Paper and allied products.............................. 39.9 38.0 40.4 35.3 42.6 39.7 38.1 40.0 35.4 42.3 39.1 36.9 40.8 35.4 42.4 Printing and publishing .................................. Chemicals and allied products........................ Petroleum and coal products ........................ Rubber and miscellaneous plastics products Leather and leather products ........................ 37.5 41.9 43.8 40.5 36.5 37.1 41.5 41.8 40.1 36.7 Overtime hours...................................... D u ra b le g o o d s N o n d u ra b le g o o d s 2.8 2.8 2.8 2.8 A pr. M ay Ju n e 2.6 Aug. 2.6 J a n .p Feb. P N o v. S e p t. M ar. July 1979 2.8 2.8 2.8 T R A N S P O R T A T IO N A N D P U B L IC U T IL IT IE S 39.9 39.6 39.4 39.5 39.5 39.3 39.6 39.9 39.7 39.7 39.8 39.7 40.0 39.2 39.4 W H O L E S A L E A N D R E T A IL T R A D E 32.6 32.1 31.9 32.0 31.8 31.9 32.3 32.5 32.7 32.1 32.1 32.0 32.4 31.6 31.7 W HOLESALE TRADE 38.8 38.5 38.4 38.4 38.4 38.5 38.2 38.2 38.4 38.5 38.7 38.6 38.9 38.5 38.2 R E T A IL T R A D E 30.6 30.1 29.8 29.9 29.7 29.9 30.4 30.7 30.9 30.1 30.0 30.0 30.5 295 29.6 36.2 36.2 36.3 36.3 36.2 36.1 36.4 36.2 36.3 36.1 36.3 36.3 36.3 36.2 36.4 32.7 32.6 32.5 32.5 32.4 32.3 32.8 33.1 33.1 32.5 32.6 32.6 32.6 32.4 32.4 F IN A N C E , IN S U R A N C E , A N D REA L ESTATE S E R V IC E S ............................................................................... 90 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 16. Weekly hours, by industry division and major manufacturing group, seasonally adjusted [Gross averages, production or nonsupervisory workers on private nonagricultural payrolls] 1980 1981 In d u s try d iv is io n a n d g ro u p T O T A L P R IV A T E ............................................................... Feb. M ar. A pr. M ay Ju n e July Aug. S e p t. O ct. N o v. D ec. J a n .p F e b .p 35.5 35.4 35.3 35.1 35.0 34.9 35.1 35.2 35.3 35.4 35.4 35.5 35.2 M IN IN G 43.2 43.4 42.8 42.7 43.2 41.9 43.1 43.5 43.5 43.5 44.1 43.7 42.8 C O N S T R U C T IO N 37.1 36.6 36.7 36.8 37.1 36.8 36.5 37.4 37.0 37.2 37.1 38.4 35.9 M A N U F A C T U R IN G 40.1 3.0 39.8 3.1 39.8 3.0 39.3 39.1 2.4 39.0 2.5 39.4 2.7 39.6 2.7 39.7 39.9 2.9 40.1 3.1 40.4 3.1 39.8 2.9 40.6 3.1 40.3 3.2 40.3 3.0 39.7 2.5 39.5 2.4 39.4 2.4 399 40.1 2.7 40.1 Overtime hours............................................ 40.5 3.0 40.6 3.2 40.9 3.1 40.2 2.9 Lumber and wood products ................................ Furniture and fixtures.......................................... Stone, clay, and glass products .......................... Primary metal industries...................................... Fabricated metal products .................................. 39.1 39.0 41.2 40.8 40.8 38.7 38.5 40.9 40.7 40.7 37.3 38.5 40.6 40.6 40.8 37.5 37.6 40.3 39.2 39.9 37.6 37.0 40.4 38.8 39.7 38.1 36.6 40.2 38.6 39.6 38.9 37.4 40.3 39.2 40.1 38.8 38.0 40.9 39.7 40.4 38.7 38.0 40.9 40.1 40.4 39.3 38.0 41.1 40.9 40.6 39.4 38.6 41.3 41.4 40.6 40.0 38.8 41.5 41.3 40.7 38.3 38.7 40.8 40.7 40,4 Machinery, except electrical................................ Electric and electronic equipment........................ Transportation equipment.................................... Instruments and related products ........................ Miscellaneous manufacturing .............................. 41.5 40.3 40.8 40.9 39.1 41.3 40,0 40.4 40.4 38.6 41.5 39.9 40.5 40.7 385 41.0 39.5 39.7 40.3 38.3 40.7 39.2 39.5 40.4 38.2 40.6 39.0 39.6 40.1 38.3 40.8 39.4 40.9 40.1 38.6 40.9 39.5 40.6 40.1 38.9 40.7 39.9 40.8 40.2 38.7 41.0 40.0 41.4 40.5 38.6 41.0 40.2 41.3 40.5 39.0 41.3 40.4 42.2 40.9 39.0 40.9 39.6 40.6 40.1 39.1 39.4 2.9 39.0 3.0 39.1 3.0 38.9 38.6 2.5 38.5 38.7 38.8 2.7 39.0 Overtime hours............................................ 39.0 2.9 39.3 3.0 39.6 3.1 39.3 3.0 Food and kindred products.................................. Tobacco manufactures ...................................... Textile mill products............................................ Apparel and other textile products ...................... Paper and allied products .................................. 39.7 37.9 41.1 35.9 42.9 39.3 37.7 40.8 35.3 42.6 39.6 38.2 40.3 35.8 42.5 39.9 382 39.7 35.3 41.7 39.6 37.3 39.1 35.2 41.4 39.7 38.5 38.8 35.1 41.4 39.8 37.3 39.2 35.1 41.8 39.7 37.5 39.7 35.1 42.2 39.6 39.5 39.9 35.3 42.2 39.8 38.9 40.0 35.0 42.6 39.8 37.2 40.3 35.6 43.0 40.3 39.6 40.4 35.9 43.3 40.0 39.3 40.0 35.5 43.1 Printing and publishing........................................ Chemicals and allied products ............................ Petroleum and coal products .............................. Rubber and miscellaneous plastics products ........ Leather and leather products .............................. 37.4 41.9 40.7 40.0 37.2 37.2 41.8 39.7 39.9 36.9 37.2 41.5 41.1 40.1 37.3 37.1 41.3 42.5 39.3 36.7 36.8 41.1 42.3 39.2 36.7 36.9 40.8 42.2 39.0 36.1 37.1 41.0 42.2 40.2 36.5 36.9 41.3 42.7 40.1 36.2 37.1 41.4 43.1 40.4 36.5 36.8 41.7 43.2 40.8 36.2 37.4 41.7 43.2 40.9 36.6 37.7 41.6 43.4 41.5 37.0 37.4 41.6 43.4 40.3 37.3 Overtime hours............................................ D u ra b le g o o d s N o n d u ra b le g o o d s 2.6 2.6 2.6 2.6 2.8 2.8 2.8 2.8 T R A N S P O R T A T IO N A N D P U B L IC U T IL IT IE S 39.4 39.5 39.5 39.3 39.6 39.9 39.7 39.7 39.8 39.7 40.0 39.2 39.4 W H O L E S A L E A N D R E T A IL T R A D E 32.4 32.3 32.0 32.1 31.9 31.8 32.0 32.1 32.2 32.2 32.1 32.2 32.2 W H O LESA LE TRADE 38.8 38.5 38.5 38.6 38.0 38.0 38.2 38.5 38.5 38.6 38.7 38.8 38.6 R E T A IL T R A D E 30.4 30.3 30.0 30.1 30.0 29.8 30.1 30.1 302 30.2 30.0 30.2 302 ESTATE 36.3 36.3 36.2 36.1 36.4 36.2 36.3 36.1 36.3 36.3 36.3 36.2 36.4 S E R V IC E S 32.7 32.7 32.6 32.5 32.6 32.6 32.6 32.5 32.6 32.7 32.6 32.6 32.6 F IN A N C E , IN S U R A N C E , A N D REAL https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 91 MONTHLY LABOR REVIEW April 1981 • Current Labor Statistics: Establishment Data 17. Hourly earnings, by industry division and major manufacturing group [Gross averages, production or nonsupervisory workers on private nonagricultural payrolls] 1981 1980 A n n u a l a v e ra g e In d u s try d iv is io n an d g ro u p T O T A L P R IV A T E ..................................................................... J a n .p F e b .P 1979 1980 Feb. M ar. A pr. M ay Ju n e July A ug. S ep t. O ct. N o v. D ec. $6.16 $6.66 $6.46 $6.51 $6.53 $6.57 $6.61 $6.64 $6.68 $6.80 $6.86 $6.93 $6.94 $7.03 $7.04 9.08 9.18 9.32 9.37 9.51 9.58 9.78 9.84 9.91 10.05 10.19 10.25 10.25 10.35 10.42 10.34 7.49 7.59 7.69 7.72 7.72 8.02 M I N I N G ................................................................................................ 8.50 9.18 8.90 8.95 9.10 9.08 9.16 C O N S T R U C T IO N ............................................................................. 9.27 9.94 9.61 9.68 9.69 9.77 9.81 6.69 7.27 7.00 7.06 7.09 7.13 7.20 7.29 7.30 7.42 Lumber and wood products ............................ Furniture and fixtures...................................... Stone, clay, and glass products ...................... Primary metal industries.................................. Fabricated metal products .............................. 7.13 6.08 5.06 6.85 8.97 6.84 7.76 6.56 5.48 7.51 9.76 7.44 7.46 6.33 5.32 7.14 9.44 7.14 7.54 6.35 5.37 7.27 9.45 7.24 7.56 6.28 5.39 7.34 9.53 7.27 7.60 6.40 5.42 7.45 9.61 7.32 7.69 6.56 5.49 7.53 9.65 7.42 7.77 6.72 5.52 7.60 9.82 7.42 7.78 6.76 5.54 7.64 9.84 7.48 7.93 6.80 5.58 7.69 9.95 7.62 6.76 5.59 7.74 10.09 7.68 8.13 6.79 5.62 7.82 10.28 7.75 8.24 6.77 5.69 7.83 10.35 7.86 8.24 6.82 5.72 7.86 10.35 7.86 8.25 6.85 5.77 7.86 10.44 7.90 Machinery, except electrical............................ Electric and electronic equipment.................... Transportation equipment................................ Instruments and related products .................... Miscellaneous manufacturing .......................... 7.32 6.32 8.54 6.17 5.03 8.04 6.96 9.34 6.81 5.45 7.69 6.71 7.76 6.78 9.04 6.63 5.34 7.81 6.79 9.04 6.63 5.37 7.91 6.78 9.06 6.72 5.40 7.97 6.87 9.24 6.80 5.42 8.05 6.96 9.34 8.07 7.02 9.35 5.46 8.36 7.20 9.77 6.95 5.55 8.44 7.29 9.89 7.02 5.60 8.57 7.39 5.46 8.28 7.14 9.56 6.92 5.51 8.59 7.42 9.96 7.20 5.81 8.61 7.39 9.89 7.22 5.81 6.30 6.36 6.75 7.79 4.91 4.46 7.63 6.42 6.82 7.64 4.90 4.45 7.65 6.48 6.84 7.97 4.93 4.51 7.79 6.60 6.89 8.06 5.06 4.50 7.97 6.62 6.90 7.74 5.19 4.60 7.99 6.69 6.93 7.42 5.24 4.70 8.06 6.72 6.95 7.56 5.26 4.73 8.09 6.80 7.09 7.74 5.30 4.75 8.18 6.94 7.21 8.44 5.34 4.89 8.27 6.94 7.22 8.35 5.33 4.89 8.28 7.34 7.46 8.24 10.22 10.22 6.57 4.59 7.73 8.46 10.33 6.63 4.61 7.75 8.52 10.39 6.70 4.64 7.79 8.59 10.52 6.79 4.68 7.91 8.71 6.39 4.54 7.53 8.35 10.25 6.48 4.54 7.63 8.39 9.83 6.30 4.52 7.44 8.17 10.07 6.34 4.53 10.37 6.89 4.73 6.95 4.85 7.94 8.75 11.18 6.96 4.86 8.71 8.72 8.75 8.90 8.95 9.04 9.20 9.28 9.31 9.34 9.38 M A N U F A C T U R IN G D u ra b le g o o d s 6.00 N o n d u ra b le g o o d s 886 6.59 5.30 6.27 6.64 7.36 4.90 4.45 7.52 6.54 6.86 668 6.86 6.86 10.11 7.14 5.72 6.86 7.13 8.00 Food and kindred products.............................. Tobacco manufactures.................................... Textile mill products........................................ Apparel and other textile products .................. Paper and allied products................................ 6.27 6.65 4.66 4.23 7.13 Printing and publishing.................................... Chemicals and allied products ........................ Petroleum and coal products .......................... Rubber and miscellaneous plastics products . . . Leather and leather products .......................... 6.95 7.60 9.36 5.96 4.22 7.54 8.29 10.09 6.49 4.57 7.29 9.37 6.25 4.47 7.34 8.05 9.29 6.27 4.51 T R A N S P O R T A T IO N A N D P U B L IC U T IL IT IE S 8.17 8.89 8.58 862 W H O L E S A L E A N D R E T A IL T R A D E 5.06 5.48 5.36 5.40 5.40 5.42 5.43 5.48 5.48 5.56 5.59 5.64 5.61 5.79 5.81 W HOLESALE TRADE 6.39 6.97 6.77 6.83 6.87 6.89 6.95 6.99 7.01 7.08 7.10 7.20 7.24 7.31 7.35 R E T A IL T R A D E 4.53 4.88 4.78 4.81 4.80 4.82 483 4.88 4.89 4.95 4.98 5.02 4.99 5.17 5.18 5.27 5.78 5.60 5.68 5.68 5.70 5.77 5.77 5.82 5.87 5.91 5.79 5.93 6.00 6.01 6.10 6.00 6.12 6.12 6.21 6.21 5.81 7.66 5.07 4.57 7.85 7.57 4.92 4.49 7.55 8.01 8.12 F IN A N C E , IN S U R A N C E , A N D REA L E S T A T E .......................................................................................... 5.36 S E R V IC E S ........................................................................................... 18. 5.70 5.85 5.75 5.75 5.79 5.81 5.33 4.81 8.28 7.88 8.68 11.02 6.28 Hourly Earnings Index for production or nonsupervisory workers on private nonagricultural payrolls, by industry division [Seasonally adjusted data: 1967=100] 1981 1980 Jan . 1981 In d u s try T O T A L P R IV A T E (in c u rre n t d o lla rs ) Mining.......................................... Construction ................................ Manufacturing .............................. Transportation and public utilities . . . Wholesale and retail trade ............ Finance, insurance, and real estate . Services ...................................... T O T A L P R IV A T E (in c o n s ta n t d o lla r s ) r r = revised. 92 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J a n .p F e b .p Feb. M ar. A pr. M ay June July Aug. S e p t. O ct. Nov. D ec. 242.4 245.2 246.2 248.3 250.9 252.1 254.0 255.4 257.9 260.9 261.9 264.2 265.6 278.5 229.8 247.8 2624 235.2 280.9 232.2 250.2 265.9 237.8 225.7 242.7 283.7 233.0 252.4 267.2 238.0 224.9 243.0 284.2 234.2 255.0 268.7 239.8 226.3 245.7 286.3 235.3 258.3 270.6 241.8 230.2 248.4 285.3 236.7 260.6 272.8 243.5 229.0 247.6 288.9 239.0 262.4 273.2 245.3 232.7 249.8 290.4 239.3 264.5 274.0 246.5 233.1 251.7 294.4 241.6 266.6 280.2 247.7 234,8 254.2 298.7 243.0 268.9 283.4 250.9 239.3 258.5 302.3 245.3 270.4 284.1 250.9 238.0 259.4 306.6 247.7 272.3 285.9 254.1 240.9 261.2 307.5 246.2 273.3 287.1 255.4 244.0 264.2 101.0 101.5 101.6 102.1 102.0 101.5 101.4 101.5 100.8 100.9 221.1 239.7 102.2 1021 Feb . 1980 to to F eb . 1981 F eb . 1981 0.5 9.6 .3 10.4 7.1 10.3 9.4 -.6 .4 .4 .5 1.3 1.1 8.6 10.4 10.2 19. Weekly earnings, by industry division and major manufacturing group [Gross averages, production or nonsupervisory workers on private nonagricultural payrolls] 1980 A n n u al a v e ra g e 1981 In d u s try d iv is io n an d g ro u p 1979 1980 Feb. M ar. $229.15 A pr. M ay Ju n e July Aug. S e p t. O ct. Nov. D ec. J a n .p F e b .p $233.33 $234.39 $237,14 $240.04 $242.16 $244.63 $247.06 $246.05 $245.70 $219.30 $235.10 $226.75 M IN IN G 365.50 396.58 384.48 388.43 389.48 387.72 395.71 380.45 395.66 405.42 407.60 413.69 422.48 427.39 421.15 C O N S T R U C T IO N 342.99 367.78 343.08 350.42 355.62 360.51 371.80 373.61 374.87 386.20 388.48 377.20 383.99 378.25 357.76 M A N U F A C T U R IN G 268.94 288.62 278.60 280.99 279.35 280.21 283.68 282.85 286.89 294.57 298.10 305.12 313.75 308.03 304.94 Lumber and wood products........................ Furniture and fixtures ................................ Stone, clay, and glass products.................. Primary metal industries ............................ Fabricated metal products.......................... 290.90 239 55 195.82 284.28 371.36 278.39 311.95 253.22 208.79 306.41 391.38 300.58 300.64 243.71 204.29 286.31 384.21 288.46 303.86 243.21 206.75 295.89 384.62 293.94 301.64 232.99 204.28 296.54 386.92 292.25 301.72 240.64 202.17 302.47 377.67 292.07 306.06 251.90 204.78 308.73 377.32 297.54 303.81 256.70 199.82 306.28 379.05 290.86 308.87 264.99 208.30 310.95 383.76 299.20 318.79 267.24 213.71 316.06 397.01 308.61 323.21 264.99 215.22 319.66 402.59 311.04 330.89 266.17 21581 323.75 419.42 316.98 341.96 268.09 225.32 32573 430.56 326.98 332.90 263.93 217.36 316.76 426.42 317.54 329.18 258.93 219.84 312.83 423.86 316.00 Machinery except electrical........................ Electric and electronic equipment................ Transportation equipment .......................... Instruments and related products................ Miscellaneous manufacturing...................... 305.98 254.70 350.99 251.74 195.16 33044 277.01 379.20 275.81 210.92 319.14 269.74 357.94 268.87 204.58 322.04 271.20 365.22 269.18 207.19 320.21 268.88 359.79 267.85 206.21 322.73 266.45 361.49 270.82 206.28 325.18 270.68 368.68 275.40 207.59 322.00 267.96 368.93 271.66 206.39 326.03 275.18 374.00 273.71 210.21 339.48 283.46 389.09 277.49 215.44 340.25 287.28 401.55 280.09 215.90 348.57 294.52 412.41 287.12 218,96 361.65 30299 435.74 294.17 225.94 353.91 297.54 410.35 291.60 224.27 352.15 291.91 397.58 288.80 224.85 235.80 250.17 252.70 188.26 149.32 303.74 255.06 272.34 291.85 202.80 161.78 332.06 243.90 259.62 271.58 199.92 157.53 318.85 245.07 260.52 285.39 201.23 158.95 320.12 246.13 262.58 297.58 195.91 157.44 321.99 248.45 270.75 295.67 195.02 157.09 318.24 251.42 270.86 305.25 195.23 160.56 324.84 254.10 274.91 294.19 194.81 158.85 329.96 257.52 278.07 284.83 203.45 162.84 333.98 261.58 279.28 283.44 208.55 165.44 341.74 262.75 275.92 303.16 209.87 167.44 341.40 267.24 284.31 309.60 213.59 168.15 350.10 273.03 287.34 304.80 217.46 172.68 361.84 271.35 288.40 324.10 212.53 171.64 355.61 269.27 284.47 319.81 211.60 171.15 352.73 260.63 318.44 409.97 279.73 344.04 421.76 269.73 333.22 371.99 273.05 335.69 366.03 270.11 337.79 404.01 274.54 337.42 425.96 273.78 339.49 432.31 277.10 339.85 437.68 283.84 343.15 431.28 288.33 349.40 448.32 288.30 352.73 454.04 289.79 360.78 458.67 300.23 365.43 449.02 293.46 359.72 469.45 293.78 362.25 474.03 241.38 154.03 260.25 167.72 249.38 164.50 250.80 164.16 250.11 165.88 247.26 167.61 251.13 169.80 250.13 165.26 262.80 167.99 267.19 166.88 272.69 169.36 279.07 169.88 286.62 174.54 285.65 177.03 280.49 179.33 T R A N S P O R T A T IO N A N D P U B L IC U T IL IT IE S 325.98 352.04 338.05 340.49 344.05 342.70 346.50 355.11 355.32 358.89 36616 368.42 372.40 366.13 369.57 W H O L E S A L E A N D R E T A IL T R A D E 164.96 175.91 170.98 172.80 171.72 172.90 175.39 178.10 179.20 178.48 179.44 180.48 181.76 182.96 184.18 W HOLESALE TRADE .................................................... 247.93 268.35 259.97 262.27 263.81 265.27 265.49 267.02 269.18 272.58 274.77 277.92 281.64 281.44 280.77 R E T A IL T R A D E ................................................................. 138.62 146.89 142.44 143.82 142.56 144.12 146.83 149.82 151.10 149.00 149.40 150.60 152.20 152.52 153.33 190.77 209.24 203.28 206.18 205.62 205.77 210.03 208.87 211.27 211.91 214.53 218.16 217.80 221.54 226.04 175.27 190.71 185.25 186.88 186.30 187.02 190.57 191.65 192.31 192.73 195.60 198.86 199.51 201.20 203.47 T O T A L P R I V A T E .............................................. D u ra b le g o o d s ............................................................... N o ndu rab le g o o d s Food and kindred products ........................ Tobacco manufactures .............................. Textile mill products .................................. Apparel and other textile products.............. Paper and allied products .......................... Printing and publishing................................ Chemicals and allied products.................... Petroleum and coal products...................... Rubber and miscellaneous plastics products.................................... Leather and leather products...................... F IN A N C E , IN S U R A N C E , A N D R E A L E S T A T E S E R V IC E S ............................................................................ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis . $228.55 $229.95 93 MONTHLY LABOR REVIEW April 1981 • Current Labor Statistics: Establishment Data 20. Gross and spendable weekly earnings, in current and 1967 dollars, 1960 to date [Averages for production or nonsupervisory workers on private nonagricultural payrolls] M a n u fa c tu rin g w o rk e rs P riv a te n o n a g ric u ltu ra l w o rk e rs S p e n d a b le a v e ra g e w e e k ly e a rn in g s S p e n d a b le a v e ra g e w e e k ly e a rn in g s G ro s s a v e ra g e G ro s s a v e ra g e Y e a r an d m o n th w e e k ly e a rn in g s W o rk e r w ith no w e e k ly ea rn in g s W o rk e r w ith no d e p e n d e n ts 3 d e p e n d e n ts d e p e n d e n ts 1960 .......................................... M a rrie d w o rk e r w ith M a rrie d w o rk e r w ith 3 d e p e n d e n ts C u rre n t 1967 C u rre n t 1967 C u rre n t 1967 C u rre n t 1967 C u rre n t 1967 C u rre n t 1967 d o lla rs d o llars d o llars d o lla rs d o lla rs d o lla rs d o lla rs d o llars d o lla rs d o lla rs d o lla rs d o lla rs $80.67 $90.95 $65.59 $73.95 $72.96 $82.25 $89.72 $101.15 $72.57 $81.82 $80.11 $90.32 92.19 94.82 96.47 98.31 74.87 76.78 77.48 80.78 83.94 74.48 76.99 78.56 82.57 86.63 83.13 84.98 85.67 91.67 92.34 96.56 99.23 102.97 107.53 103.06 106.58 108.21 110.84 113.79 74.60 77.86 79.51 84.40 89.08 83.26 85.94 86.71 90.85 94.26 82.18 85.53 87.25 92.18 96.78 91.72 94.40 95.15 99.22 102.41 91.21 90.86 91.44 91.07 90.20 112.19 114.49 122.51 129.51 133.33 115.42 114.49 117.57 117.95 114.64 91.45 92.97 97.70 101.90 106.32 94.08 92.97 93.76 92.81 91.42 99.33 100.93 106.75 111.44 115.58 102.19 100.93 102.45 101.49 99.38 1961 1962 1963 1964 1965 .......................................... .......................................... .......................................... .......................................... .......................................... 82.60 85.91 88.46 91.33 95.45 101.01 67.08 69.56 71.05 75.04 79.32 1966 1967 1968 1969 1970 .......................................... .......................................... .......................................... .......................................... .......................................... 98.82 101.84 107.73 114.61 119.83 101.67 101.84 103.39 104.38 103.04 81.29 83.38 86.71 90.96 96.21 83.63 83.38 83.21 82.84 82.73 1971 1972 1973 1974 1975 .......................................... .......................................... .......................................... .......................................... .......................................... 127.31 136.90 145.39 154.76 163.53 104.95 109.26 109.23 104.78 101.45 103.80 112.19 117.51 124.37 132.49 85.57 89.54 88.29 84.20 82.19 112.43 127.38 134.61 145.65 92.69 97.11 95.70 91.14 90.35 142.44 154.71 166.46 176.80 190.79 117.43 123.47 125.06 119.70 118.36 114.97 125.34 132.57 140.19 151.61 94.78 100.03 99.60 94.92 94.05 124.24 135.57 143.50 151.56 166.29 102.42 108.20 107.81 102.61 103.16 1976 1977 1978 1979 1980 .......................................... .......................................... .......................................... .......................................... .......................................... 175.45 189.00 203.70 219.30 235.10 102.90 104.13 104.30 100.73 95.18 143.30 155.19 165.39 177.55 188.82 84.05 85.50 84.69 81.56 76.45 155.87 169.93 180.71 194.35 206.40 91.42 93.63 92.53 89.27 83.56 209.32 228.90 249.27 268.94 288.62 122.77 126.12 127.63 123.54 116.85 167.83 183.80 197.40 212.43 225.79 98.43 101.27 101.08 97 58 91.41 181.32 200.06 214.87 232.07 247.01 106.35 110.23 110.02 106.60 100.00 1980: February.......................... March .............................. 226.75 229.15 95.88 95.52 182.98 184.67 77.37 76.98 200.07 201.89 84.60 84.16 278.60 280.99 117.80 117.13 218.99 220.61 92.60 91.96 239.40 241.22 101.23 100.55 April ................................ May ................................ June ................................ 228.55 229.95 233.33 94.21 93.82 94.16 184.25 185.23 187.59 75.95 75.57 75.70 201.43 202.49 205.06 83.03 82.62 82.75 279.35 280.21 283.68 115.15 114.32 114.48 219.49 220.08 222.43 90.47 89.79 89.76 239.97 240.63 243.26 98.92 98.18 98.17 July.................................. August ............................ September ...................... 234.39 237.14 240.04 94.51 95.01 95.29 188.33 190.25 192.28 75.94 76.22 76.33 205.86 207.95 210.15 83.01 83.31 83.43 282.85 286.89 294.57 114.05 114.94 116.94 221.87 224.61 229.82 89.46 89.99 91.23 242.63 245.69 251.52 97.83 98.43 99.85 October............................ November........................ December ...................... 242.16 244.63 247.06 95.30 95.41 95.50 193.76 195.48 197.18 76.25 76.24 76.22 211.76 213.63 215.47 83.34 83.32 83.29 298.10 305.12 313.75 117.32 119.00 121.28 232.22 236.98 242.60 91.39 92.43 93.78 254.20 259.52 265.84 101.22 1981: January p .......................... Februaryp ........................ 246.05 245.70 94.38 195.20 194.95 74.88 213.43 213.16 81.87 308.03 304.94 118.15 237.35 235.28 91.04 260.07 257.80 88.66 90.86 95.28 99.99 104.90 121.68 ’ Not available. . I, . . . . . . . . i > NOTE: The earnings expressed in 1967 dollars have been adjusted for changes in price level as measured by the Bureau’s Consumer Price Index for Urban Wage Earners and Clerical Workers. These series are described in “The Spendable Earnings Series: A Technical Note on Its Cal- 94 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 88.88 100.04 102.76 99.76 culation,” E m p lo y m e n t an d E a rn in g s an d M o n th ly R e p o rt o n th e L a b o r F o rc e , February 1969, pp. 6 - 1 3 . See also “ Spendable Earninqs Formulas, 1 9 7 9 -8 1 ," E m p lo y m e n t a n d E arn in g s, March v v ' 3 ’ ~ U NEM PLO YM ENT INSURANCE DATA U n e m p l o y m e n t i n s u r a n c e d a t a are compiled monthly by the Employment and Training Administration of the U.S. De partment of Labor from records of State and Federal unem ployment insurance claims filed and benefits paid. Railroad unemployment insurance data are prepared by the U.S. Rail road Retirement Board. ployed. Persons not covered by unemployment insurance (about onethird of the labor force) and those who have exhausted or not yet earned benefit rights are excluded from the scope of the survey. I n i tia l c la im s are notices filed by persons in unemployment insurance programs to indicate they are out of work and wish to begin receiv ing compensation. A claimant who continued to be unemployed a full week is then counted in the insured unemployment figure. The r a te o f in su r e d u n e m p lo y m e n t expresses the number of insured unem ployed as a percent of the average insured employment in a 12-month period. Definitions Data for a ll p r o g r a m s represent an unduplicated count of insured unemployment under State programs, Unemployment Compensation for Ex-Servicemen, and Unemployment Compensation for Federal Employees, and the Railroad Insurance Act. An a p p lic a tio n for benefits is filed by a railroad worker at the be ginning of his first period of unemployment in a benefit year; no ap plication is required for subsequent periods in the same year. N u m b er o f p a y m e n ts are payments made in 14-day registration periods. The a v e r a g e a m o u n t o f b e n e fit p a y m e n t is an average for all com pensable periods, not adjusted for recovery of overpayments or set tlement of underpayments. However, to t a l b e n e fit s paid have been adjusted. Under both State and Federal unemployment insurance programs for civilian employees, insured workers must report the completion of at least 1 week of unemployment before they are defined as unem 21. Unemployment insurance and employment service operations [All items except average benefits amounts are in thousands] 1980 Jan. All programs: Insured unemployment ...................... State unemployment insurance program:1 Initial claims2 .................................... Insured unemployment (average weekly volume).............................. Rate of insured unemployment .......... Weeks of unemployment compensated ................................ Average weekly benefit amount for total unemployment .................. Total benefits paid ............................ Unemployment compensation for exservicemen: 3 Initial claims1 .................................... Insured unemployment (average weekly volume).............................. Weeks of unemployment compensated ................................ Total benefits paid ............................ Unemployment compensation for Federal civilian employees:4 Initial claims ...................................... Insured unemployment (average weekly volume).............................. Weeks of unemployment compensated ................................ Total benefits paid ............................ Feb. 3,740 M ar. 3,730 Apr. M ay Ju n e 1981 July Aug. N o v. D ec. 3,629 3,680 3,790 4,140 3,911 3,961 3,661 3,726 4,085 2,837 1,818 1,705 2,190 2,248 2,319 2,737 1,829 1,702 1,808 1,673 2,544 3,537 4.1 3,518 4.1 3,356 3.9 3,278 3.8 3,343 3.9 3,455 4.0 3,692 4.3 3,408 3.9 3,087 3.6 2,903 3.3 2,983 3.4 3,321 3.8 13,792 12,801 13,170 12,689 12,302 12,441 14,398 12,786 11,689 11,443 r 9,514 12,595 $96.41 $98.39 $99.15 $99.52 $99.55 $99.88 $98.75 $99.68 $99.86 $92.32 $1,283,946 $1,229,877 $1,218,231 $1,232,173 $1,196,836 $1,213,595 $1,397,508 $1,249,782 $1,144,885 $1,125,416 25 21 21 21 20 23 27 23 58 63 52 50 45 58 55 56 56 54 55 299 $29,635 255 $25,308 249 $24,928 246 $24,518 220 122 331 $33,342 244 $24,560 245 $24,804 255 $25,880 216 r $21,024 267 $27,015 19 11 12 11 34 32 30 25 150 $14,118 129 $12,226 123 $11,901 108 $10,323 22 7 5 4 $22,025 12 22 88 $8,280 $11,761 17 15 19 21 14 18 25 29 32 35 37 50 $4,665 124 $11,296 93 $8,707 105 $9,699 130 $11,917 118 r$11,351 156 $14,735 24 44 13 10 9 7 11 44 39 40 89 38 84 38 70 39 83 $211.99 $18,809 $208.49 $17,789 $209.00 $14,269 $212.27 $18,046 23 54 27 55 $199.01 $14,967 $208.73 $14,573 $210.79 $13,884 $201.87 $13,002 $193.44 $9,953 $199.06 $10,140 $207.08 $13,320 $211.87 $17,336 Employment service:5 New applications and renewals .......... Nonfarm placements.......................... 5,980 1,314 7,285 1,561 8,708 1,853 11,446 2,413 12,864 2,730 14,249 3,105 15,431 3,445 2,143 1nitial claims and State insured unemployment include data under the program for Puerto Rican sugarcane workers. Includes interstate claims for the Virgin Islands. Excludes transition claims under State programs. Excludes data on claims and payments made jointly with other programs. 66 86 4,623 3,845 4.4 21 26 27 62 10,021 17 14 30 68 23 20 39 71 6 25 Jan. r $101.96 $101.41 r$1,055,065 $1,242,957 60 40 80 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis O ct. 3,652 Railroad unemployment insurance: Applications ...................................... Insured unemployment (average weekly volume).............................. Number of payments ........................ Average amount of benefit payment........................................ Total benefits paid ............................ 1 2 3 S ep t. 57 41 4Includes the Virgin islands. Exludes data on claims and payments made jointly with State programs 6Cumulative total for fiscal year (October 1-September 30). r = revised NOTE: Date for Puerto Rico included. Dashes indicate data not available. 95 PRICE DATA d a t a are gathered by the Bureau of Labor Statistics from retail and primary markets in the United States. Price indexes are given in relation to a base period (1967 = 100, unless otherwise noted). P r ic e Definitions The C o n s u m e r P r ic e I n d e x is a monthly statistical measure of the average change in prices in a fixed market basket of goods and ser vices. Effective with the January 1978 index, the Bureau of Labor Sta tistics began publishing CPI’s for two groups of the population. One index, a new CPI for All Urban Consumers, covers 80 percent of the total noninstitutional population; and the other index, a revised CPI for Urban Wage Earners and Clerical Workers, covers about half the new index population. The All Urban Consumers index includes, in addition to wage earners and clerical workers, professional, manageri al, and technical workers, the self-employed, short-term workers, the unemployed, retirees, and others not in the labor force. The CPI is based on prices of food, clothing, shelter, fuel, drugs, transportation fares, doctor’s and dentist’s fees, and other goods and services that people buy for day-to-day living. The quantity and quali ty of these items is kept essentially unchanged between major revi sions so that only price changes will be measured. Prices are collected from over 18,000 tenants, 24,000 retail establishments, and 18,000 housing units for property taxes in 85 urban areas across the country. All taxes directly associated with the purchase and use of items are included in the index. Because the CPI’s are based on the expendi tures of two population groups in 1972-73, they may not accurately reflect the experience of individual families and single persons with different buying habits. Though the CPI is often called the “Cost-of-Living Index,” it mea sures only price change, which is just one of several important factors affecting living costs. Area indexes do not measure differences in the level of prices among cities. They only measure the average change in prices for each area since the base period. P r o d u c e r P r ic e I n d e x e s measure average changes in prices received in primary markets of the United States by producers of commodities in all stages of processing. The sample used for calculating these in dexes contains about 2,800 commodities and about 10,000 quotations per month selected to represent the movement of prices of all com modities produced in the manufacturing, agriculture, forestry, fishing, mining, gas and electricity, and public utilities sectors. The universe includes all commodities produced or imported for sale in commercial transactions in primary markets in the United States. Producer Price Indexes can be organized by stage of processing or by commodity. The stage of processing structure organizes products by degree of fabrication (that is, finished goods, intermediate or semifinished goods, and crude materials). The commodity structure organizes products by similarity of end-use or material composition. To the extent possible, prices used in calculating Producer Price In dexes apply to the first significant commercial transaction in the Unit ed States, from the production or central marketing point. Price data are generally collected monthly, primarily by mail questionnaire. 96 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Most prices are obtained directly from producing companies on a vol untary and confidential basis. Prices generally are reported for the Tuesday of the week containing the 13th day of the month. In calculating Producer Price Indexes, price changes for the vari ous commodities are averaged together with implicit quantity weights representing their importance in the total net selling value of all com modities as of 1972. The detailed data are aggregated to obtain in dexes for stage of processing groupings, commodity groupings, dura bility of product groupings, and a number of special composite groupings. P r ic e in d e x e s fo r th e o u tp u t o f s e le c t e d S I C in d u s tr ie s measure av erage price changes in commodities produced by particular industries, as defined in the S t a n d a r d I n d u s tr ia l C la ssifica tio n M a n u a l 1 9 7 2 (Washington, U.S. Office of Management and Budget, 1972). These indexes are derived from several price series, combined to match the economic activity of the specified industry and weighted by the value of shipments in the industry. They use data from comprehensive in dustrial censuses conducted by the U.S. Bureau of the Census and the U.S. Department of Agriculture. Notes on the data Beginning with the May 1978 issue of the R ev ie w , regional CPI’s cross classified by population size, were introduced. These indexes will enable users in local areas for which an index is not published to get a better approximation of the CPI for their area by using the appropri ate population size class measure for their region. The cross-classified indexes will be published bimonthly. (See table 24.) For further details about the new and the revised indexes and a comparison of various aspects of these indexes with the old unrevised CPI, see F a cts A b o u t th e R e v is e d C o n s u m e r P ric e I n d e x , a pamphlet in the Consumer Price Index Revision 1978 series. See also Th e C o n s u m e r P ric e I n d e x : C o n c ep ts a n d C o n te n t O v e r th e Years. Report 517, revised edition (Bureau of Labor Statistics, May 1978). For interarea comparisons of living costs at three hypothetical stan dards of living, see the family budget data published in the H a n d b o o k o f L a b o r S ta tistic s, 1977, Bulletin 1966 (Bureau of Labor Statistics, 1977), tables 122-133. Additional data and analysis on price changes are provided in the C P I D e ta ile d R e p o r t and P r o d u c e r P ric e s a n d P ric e I n d e x es, both monthly publications of the Bureau. As of January 1976, the Wholesale Price Index (as it was then called) incorporated a revised weighting structure reflecting 1972 val ues of shipments. From January 1967 through December 1975, 1963 values of shipments were used as weights. For a discussion of the general method of computing consumer, producer, and industry price indexes, see B L S H a n d b o o k o f M e th o d s f o r S u r v e y s a n d S tu d ie s, Bulletin 1910 (Bureau of Labor Statistics, 1976), chapters 13-15. See also John F. Early, “Improving the mea surement of producer price change,” M o n th ly L a b o r R ev ie w , April 1978, pp. 7-15. For industry prices, see also Bennett R. Moss, “In dustry and Sector Price Indexes,” M o n th ly L a b o r R ev ie w , August 1965, pp. 974—82. 22. Consumer Price Index for Urban Wage Earners and Clerical Workers, annual averages and changes, 1967-79 [1967=100] Food and beverages All Items Year Index Percent change 100.0 Index Percent change 100.0 Index 104.2 109.8 116.3 4.2 5.4 5.9 103.6 108.8 114.7 3.6 5.0 5.4 104.0 110.4 118.2 1971 .................. 1972 .................. 1973 .................. 1974................... 1975 .................. 121.3 125.3 133.1 147.7 161.2 4.3 3.3 9.1 118.3 123.2 139.5 158.7 172.1 3.1 4.1 13.2 138 8.4 123.4 128.1 133.7 148.8 164.5 1976 1977 1978 1979 170.5 181.5 195.3 217.7 5.8 6.5 7.6 11.5 177.4 188.0 206.2 228,7 3.1 174.6 186.5 .................. .................. .................. .................. Percent change 100.0 1967 .................. 1966.................. 1969 .................. 1970 .................. 6.2 11.0 Apparel and upkeep Housing 6.0 97 10.9 Transportation Percent change Index 100.0 4.0 6.2 7.1 4.4 3.8 4.4 11.3 202.6 10.6 6.1 6.8 8.6 227.5 12.3 Index Percent change 100.0 5.4 5.8 4.1 103.2 107.2 112.7 3.2 3.9 5.1 119.8 122.3 126.8 136.2 142.3 3.2 3.7 7.4 4.5 118.6 119.9 123.8 137.7 150.6 1.1 11.2 147.6 154.2 159.5 166.4 3.7 4.5 3.4 4.3 165.5 177.2 185.8 212.8 Index 106.1 113.4 120.6 Other goods and services Entertainment Percent change 100.0 105.4 111.5 116.1 2.1 Medical care 6.1 6.9 6.3 Percent change Index 100.0 111.0 Index 100.0 105.7 116.7 5.7 5.0 5.1 105.2 110.4 116.8 5.2 4.9 5.8 5.3 2.9 4.8 4.2 3.9 7.2 8.4 5.7 5.8 6.4 7.2 6.5 3.2 3.9 9.3 9.4 128.4 132.5 137.7 150.5 168.6 12.0 122.9 126.5 130.0 139.8 152.2 7.5 8.9 122.4 127.5 132.5 142.0 153.9 9.9 7.1 4.9 14.5 184.7 202.4 219.4 240.1 9.5 9.6 8.4 9.4 159.8 167.7 176.2 187.6 5.0 4.9 5.1 6.5 162.7 172.2 183.2 196.3 5.2 3.3 Percent change 2.8 23, Consumer Price Index for All Urban Consumers and revised CPI for Urban Wage Earners and Clerical Workers, U.S. city average— general summary and groups, subgroups, and selected items [1967=100 unless otherwise specified] All Urban Consumers General summary Urban Wage Earners and Clerical Workers (revised) 1980 Jan. Aug. All items 233.2 Food and beverages .................................................................... Hojsirg.................................................................. Apparel and upkeep...................................................................... Transportation .............................................................................. Medical care ............................................................................ Entertainment ...................................................................... Other goods and services...................................................... 237.5 247.3 171.0 233.5 253.9 195.3 206.3 Commodities........................................................................ Commodities less food and beverages .................................... Nondurables less food and beverages.................................. Durables............................................................................ 222.4 Ser/ices .................................................................................. Rent, residential.......................................................... Household services less rent .............................................. Transportation services.................................................... Medical care services.......................................................... Other services................................................................ 1981 Sept. Oct. 249.4 251.7 252.0 265.8 178.6 252.7 268.4 208.0 214.5 254.2 267.7 182.2 254.7 270.6 209.8 1980 Nov. Dec. Jan. Jan. 253.9 256.2 258.4 260.5 257.4 273.8 184.8 259.0 274.5 259.3 279.9 183.9 261.1 275.8 220.6 255.5 271.1 183.9 256.1 272.8 210.9 221.5 211.2 212.0 222.8 2246 261.4 279.1 181.1 264.7 279.5 214.4 226.2 224.6 201.3 236.7 226.0 242.6 212.4 239.0 228.4 244.1 215.3 240.7 230.2 244.4 218.1 242.5 232.0 245.3 243.8 232.9 246.8 253.1 184.1 295.1 226.8 274.4 209.0 272.5 193.2 321.5 246.4 289.8 219.2 274.8 195.1 322.6 249.4 292.3 225.3 229.9 224.3 210.4 220.5 248.6 232.0 266.1 249.2 229.2 265.7 327.9 225.9 193.7 361.5 251.6 246.3 239.0 224.2 237.8 270.9 248.3 287.4 268.7 243.5 274.5 370.7 240.0 234.3 204.3 404.2 269.0 $0,429 $0,401 212.0 Aug. Sept. 233.3 249.6 237.8 247.3 169.8 234.1 254.9 193.9 206.0 252.5 265.8 177.9 253.5 270.0 205.6 214.0 245.4 234 3 250.2 222.3 220.6 221.1 221.0 277.9 197.1 327.4 250.8 294.8 226.7 280.9 198.3 331.9 253.3 296.6 227.2 284.7 199.6 338.4 255.8 297.9 228.1 248.6 241.5 2266 239.3 271.3 250.2 289.8 271.0 246.2 278.8 370.1 242.5 236.9 207.2 401.7 271.3 250.9 243.0 228.3 239.6 271.1 251.0 293.2 274.2 247.3 276.8 368.0 245.1 239.7 209.4 399.1 274.9 253.2 244.5 230.0 240.5 272.1 252.4 296.4 277.2 249.2 278.9 366.1 247.7 242.4 $0,397 $0,394 1981 Oct. Nov. 251.9 254.1 255.1 267.6 181.4 255.2 272.2 208.1 219.0 256.6 271.0 182.8 256.6 274.3 209.2 219.9 226.3 199.6 236.9 226.2 244.8 210.5 239.2 228.4 246.0 213.5 287.7 200.9 342.3 258.7 302.1 230.4 253.6 183.9 297.2 226.6 275.6 209.3 273.3 193.0 324.2 246.3 291.7 219.5 257.6 247.8 232.4 245.3 281.1 256.9 304.2 284.2 252.4 276.2 381.7 251.2 245.7 211.5 420.5 285.4 230.0 224.7 210.3 400.2 278.6 255.5 245.9 231.0 242.0 274.7 254.1 300.7 281.2 251.1 276.2 370.4 249.7 244.5 211.7 404.9 282.4 $0,390 $0,387 $0,384 Dec. Jan. 256.4 258.7 260.7 258.7 273.7 183.3 259.7 276.3 209.9 260.5 277.1 182.9 261.9 277.6 262.1 279.1 180.8 265.7 281.4 210.1 212.2 223.0 224.4 240.8 230.0 246.1 216.3 242.9 232.0 247.1 218.9 244.3 233.1 248.8 219.7 245.8 234.7 252.6 219.5 275.4 194.8 325.3 248.2 294.3 225.4 278.6 196.8 330.3 249.6 296.6 227.4 281.5 198.0 334.8 252.2 298.7 227.9 285.5 199.4 341.9 254.7 300.0 228.4 288.4 250.2 232.9 266.7 249.5 229.0 268.1 331.5 225.3 219.6 192.4 362.8 252.2 246.6 2396 224.4 239.9 272.9 249.6 288.6 269.4 242.9 275.9 374.2 239.4 233.4 202.9 405.5 269.9 248.7 242.0 226.5 241.1 273.0 251.5 290.7 271.4 246.1 280.8 373.1 242.0 235.9 205.7 402.7 271.9 251.0 243.5 228.2 241.3 272.8 252.3 294.2 274.7 247.0 279.0 371.1 244.5 238.7 207.8 400.3 275.6 253.4 245.1 230.1 242.2 273.9 253.8 297.4 277.7 249.1 280.7 369.5 247.2 241.5 209.9 401.3 279.3 255.7 246.7 231.2 243.9 276.6 255.6 302.0 281.9 251.1 278.4 373.7 249.3 243.6 405.9 283.4 257.9 248.5 232.7 247.5 283.0 258.3 305.2 284.7 252.1 277.9 385.2 250.6 244.8 210.4 421.3 286.2 $0,429 $0,401 $0,397 $0,394 $0,390 $0,387 $0,384 212.0 221.0 200.6 345.5 257.7 304.3 230.2 Special indexes: All items less food ...................................................... All items less mortgage Interest costs .................................... Commodities less food.................................................................. Nondurables less food .................................................... Nondurables less food and apparel.................................... Norourables ........................................................ Services less rent ............................................................ Services less medical ca re ............................................................ Domestically produced farm foods ................................................ Selected beef cuts.................................................................... Energy ...................................................................... All items less energy ............................................................ All Items less food and energy .......................................... Commodities less food and energy.................................... Energy commodities ........................................................ Services less energy...................................................... Purchasing power of the consumer dollar, 1967 = $1 .................... https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 220,6 211.2 222.1 210.6 97 MONTHLY LABOR REVIEW April 1981 • Current Labor Statistics: Consumer Prices 23. Continued —Consumer Price Index U.S. city average [1967=100 unless otherwise specified] U rb a n W a g e E a rn e rs an d C le ric a l W o rk e rs (re v is e d ) All U rb a n C o n s u m e rs G e n e ra l s u m m a ry FO O D A N D B E V E R A G E S D ec. Jan. Jan. 257.4 259.3 261.4 237.8 268.6 244.0 Jan. A ug. S e p t. O ct. N o v. 237.5 252.0 254.2 255.5 1981 1980 1981 1980 S ep t. O ct. N o v. D ec. Jan. 252.5 255.1 256.6 258.7 260.5 262.1 259.2 261.9 263.4 265.7 267.6 269.2 258.6 251.1 137.8 134.1 138.6 140.2 131.2 219.3 134.3 128.1 129.7 131,7 124.5 132.0 259.7 254.3 138.5 133.8 139.3 141.6 133.3 135.8 132.1 132,6 132.5 126.5 134.1 262.0 256.8 139.7 133.6 141.5 142.7 134.7 225.2 137.0 134.1 133.1 134.5 125.7 136.1 263.9 259.5 142.3 134.4 145.0 145.8 135.7 226.6 137.9 135.1 134.2 136.1 126.5 136.4 265.1 263.0 144.5 136.8 147.2 147.8 137.5 229.4 139.4 136.4 136.8 139.0 126.8 138.5 Aug. F o o d ......................................................................................................................................... 243.8 258.7 261.1 262.4 264.5 266.4 Food at home........................................................................................ Cereals and bakery products .......................................................... Cereals and cereal products (12/77 - 100) .............................. Flour and prepared flour mixes (12/77 - 100).................... Cereal (12/77 = 100)........................................................ Rice, pasta, and cornmeal (12/77 = 100) .......................... Bakery products (12/77 = 100)................................................ White bread ...................................................................... Other breads (12/77 - 100).............................................. Fresh biscuits, rolls, and muffins (12/77 - 100) .................. Fresh cakes and cupcakes (12/77 = 100).......................... Cookies (12/77 - 100)...................................................... Crackers and bread and cracker products (12/77 = 100) . . . Fresh sweetrolls, coffeecake, and donuts (12/77 = 100) . . . Frozen and refrigerated bakery products and fresh pies, tarts, and turnovers (12/77 = 100) .......... 240.6 234.2 125.0 125.7 123.7 126.4 123.5 208.6 123.8 124.8 121.7 119.7 117.5 258.9 250.3 137.1 1333 138.5 138.4 130,9 219.6 130.9 129.2 129.5 129.9 124.2 131.6 260.0 253.7 137.5 133.2 139.3 138.9 133.1 222.7 132.5 133.4 132.5 131.0 126.4 133.4 262.1 255.8 138.7 132.9 141.1 140.5 134.3 224,9 133.1 134.6 133.4 133.1 125.6 135.3 263,9 258.5 140.8 133.5 143.8 143.1 135.4 226.3 134.1 135.4 135.3 134.9 126.9 135.9 265.6 262.9 143.2 135.9 145.8 146.0 137.7 229.5 137.1 137.6 138.5 138.0 127.0 138.0 240.1 234.7 126.1 126.9 124.2 127.9 123.6 207.4 126.9 123.1 122.2 256.3 249.2 136.3 133.6 137.6 136.8 130.4 217.9 129.7 130.0 129.8 128.7 124.6 131.4 121.5 118.4 124.1 255.6 249.6 136.8 133.9 137.7 138.4 130.5 217.2 133.3 128.9 129.4 130.1 124.7 131.6 125.7 131.4 132.1 135.3 136.2 137.5 139.7 122.5 129.2 129.9 130.9 132.4 134.0 135.2 Meats, poultry, fish, and eggs .......................................................... Meats, poultry, and fish ............................................................ Meats .............................................................................. Beef and vea ................................................................ Ground beef other than canned.................................... Chuck roast................................................................ Round roast................................................................ Round steak .............................................................. Sirloin steak................................................................ Other beef and veal (12/77 - 100) ............................ Pork.............................................................................. Bacon ........................................................................ Pork chops ................................................................ Ham other than canned (12/77 - 100)........................ Sausage .................................................................... Canned ham .............................................................. Other pork (12/77 - 100) .......................................... Other meats .................................................................. Frankfurters................................................................ Bologna, liverwurst, and salami (12/77 = 100) ............ Other lunchmeats (12/77 - 100) ................................ Lamb and organ meats (12/77 = 100) ........................ Poultry.............................................................................. Fresh whole chicken.................................................... Fresh and frozen chicken parts (12/77 = 100) ............ Other poultry (12/77 --100) ...................................... Fish and seafood .............................................................. Canned fish and seafood (12/77 = 100)...................... Fresh and frozen fish and seafood (12/77 - 100) ........ Eggs.......................................................................... 238.0 243.0 244.1 264.6 271.4 274.7 241.9 249.8 250.9 151.8 206.4 194.5 192.1 99.1 256.6 245.4 251.0 251.1 273,1 272.9 279.8 248.8 258.0 274.1 159.0 251.8 257.7 257.8 277.5 276.8 287.7 248.0 260.7 280.9 161.8 222.7 254.9 260.7 261.1 277.9 277.1 291.7 251.2 263.8 271.8 161.8 228.6 229.5 208.5 107.9 283.5 237.7 128.4 261.8 262.6 148.4 129.7 146.1 204.1 208.7 131.8 128.0 343.0 136.0 127.5 185.2 255.7 259.9 260.0 275.3 276.1 288.5 245.7 260.2 267.6 160.4 229.1 231.9 208.7 107.8 285.6 238.4 127.6 262.8 264.0 149.1 129.9 146.6 202.7 206.9 131.6 126.6 346.9 136.4 129.6 206.6 255.1 260.6 259.7 275.3 276.3 285.3 250.0 262.4 264.9 160.3 228.2 228.1 237.5 242.5 243.7 266.7 272.7 283.6 245.1 249.4 253.5 151.9 206.8 195.3 194.8 96.5 260.3 219.3 116.2 239.3 239.5 130.5 118.7 142.5 184.3 183.8 118.7 244.3 249.8 250.0 274.1 275.6 287.9 248.2 256.4 278.8 157.6 251.2 257.1 257.2 279.1 279.9 295.4 249.0 261.4 282.2 161.2 223.0 205.0 100.7 280.0 225.9 128.5 251.5 254.3 141.2 123.5 145.0 203.3 209.6 134.1 177.0 177.1 333.4 131.0 124.5 178.4 254.2 259.9 260.3 279.1 280.4 301.9 249.9 261.8 274.9 160.3 228.5 232.3 204.8 106.0 285.9 242.2 128.8 259.0 262.6 145.7 127.5 147.7 201.4 203.5 131.6 126.5 340.0 133.5 127.0 185.7 255.0 259.2 259.3 276.8 281.0 296.0 246.6 257,6 269.7 159.2 228.8 234.1 206.8 105.7 287.2 242.6 127.4 259.4 263.4 145.2 127.7 148.5 315.4 118.4 205.6 198.5 96.3 263.6 219.1 122.7 244.1 245.9 134.5 121.5 140.8 195.1 199.9 128.1 119.1 327.3 129.3 251.8 258.1 258.1 277.4 278.9 294.0 251.1 257.9 272.8 160.3 225.8 226.0 207.3 103.5 283.2 235.2 127.9 255.8 260.3 143.6 125.5 146.5 205,4 210.5 133.5 127.1 333.8 131.2 124.6 174.4 254.1 259.4 259.2 276.4 279.3 295.2 249.6 255.5 266.3 159.5 228.5 232.5 277.9 225.1 128.6 254.9 256.1 143.5 125.7 143.8 2052 214.0 134.0 122.9 335.8 133.2 124.8 179.9 252.6 259.0 258.7 2758 275.8 284.4 250.6 258.9 270.7 161.0 2258 224.7 207.8 105.5 282.4 232.5 127.6 259.4 260.9 146.5 127.8 146.1 209,1 216.7 134.7 128.7 336.6 133.9 124.8 175.3 132.3 126.2 343.1 133.7 128.8 206.6 288.5 243.3 127.9 260.4 262.6 148.0 128.1 147.8 199.2 197.2 131.3 127.9 350.0 135.3 132.0 190.1 Dairy products.......................................................................... Fresh milk and cream (12/77 - 100) ................................ Fresh whole m ilk............................................................ Other fresh milk and cream (12/77 = 100)...................... Processed dairy products (12/77 - 100)............................ Butter............................................................................ Cheese (12/77 - 100) .................................................. Ice cream and related products (12/77 - 100)................ Other dairy products (12/77 = 100)................................ 218.4 123.2 202.3 229,7 127.9 209.8 127.1 132.5 231.2 130.4 137.0 128.3 230.6 128.0 209.7 127.7 133.6 236.2 132.3 135.7 128.9 232.7 129.1 211.3 129.1 134.9 238.9 133.4 138,0 129.0 235.4 130.4 213.3 130.5 136.9 241.5 135.9 139.1 130.6 238.0 131.9 216.2 131.4 138.2 241.0 137.0 141.4 132.4 240.1 133.0 218.2 132.1 139.6 242.7 138.2 143.6 133.3 2189 123.2 230.9 128.2 209.8 128.3 134.1 238.8 132.7 135.4 129.3 233.1 129.1 124.5 219.8 123.6 125.6 120.4 229.9 128.0 209.7 127.6 132.9 233.7 130.9 136.1 128.8 129.5 135.8 242.5 133.8 139.1 129.4 235.9 130.4 213.0 131.0 137.9 244.4 136.2 140.9 131.9 238.8 132.2 216.5 131.9 139.2 244.1 137.4 143.2 133.1 240.7 133.4 218.5 132.9 140.1 246,5 138.3 144.3 132.9 Fruits and vegetables .............................................................. Fresh fruits and vegetables ................................................ Fresh fruits .................................................................... Apples........................................................................ Bananas .................................................................... Oranges .................................................................... Other fresh fruits (12/77 = 100).................................. Fresh vegetables............................................................ Potatoes........................................................................ Lettuce ...................................................................... Tomatoes .................................................................. Other fresh vegetables (12/77 - 100) ........................ 229.8 227.2 233.6 230.4 221.9 236.2 122.5 203.8 197.6 216.7 132.0 258.4 273.0 302.3 340.8 234.0 297.1 158.5 245.6 327.1 213.1 205.4 126.2 257.4 269.6 286.3 295.2 238.0 296.5 150.8 253.9 313.2 265.9 214.2 127.1 254.2 262.3 272.9 242.2 233.4 312.9 145.4 252.4 295.6 249.1 237.3 129.7 253.3 258.3 258.6 213.5 235.7 316.6 134.9 258.0 293.0 273.5 192.2 139.6 255.6 262.0 251.8 218.8 244.1 299.3 128.6 271.5 297.7 255.3 206.1 156.3 257.6 263.9 245.6 2208 . 237.8 272,9 127.8 281.1 326.1 234.2 247.2 157.8 2272 224.9 232.7 230.1 219.5 231.3 122.7 217.9 200.9 193.2 213.2 130.5 256.6 270.8 300.1 342.2 228.0 285.5 157.9 244.4 325.4 209.3 199.6 127.0 255.8 267.8 284.9 2953 234.3 284.2 151.9 252,4 309.2 262.5 127.6 252.3 259.6 270.4 243.7 230.2 301.5 145.6 249.9 292.0 241.3 235.6 129.6 251.4 255.7 255,5 213.0 232.0 300.4 136.4 256.0 2899 267.2 188.9 140.0 253.9 260.2 248.6 216.9 2392 287.0 129.2 270.9 298.0 253.8 204.5 156.2 255 1 260.3 241.1 216.8 228.9 258.9 128.4 277.8 322.9 229.9 239.8 156.9 Processed fruits and vegetables ........................................ Processed fruits (12/77 - 100) ...................................... Frozen fruit and fruit juices (12/77 - 100).................... Fruit juices and other than frozen (12/77 = 100) .......... Canned and dried fruits (12/77 - 100) ........................ Processed vegetables (12/77 - 100).............................. Frozen vegetables (12/77 - 100)................................ 234.7 122.9 117.2 125.1 125.3 113.0 111.9 244.5 126.9 119.2 130.1 130.0 118.8 119.6 246.3 127.4 119.3 130.8 130.7 247.5 127.8 118.8 131.0 132.0 250.1 129.1 120.5 131.9 133.3 250.9 129.0 253.0 129.9 120.7 133.2 134.1 124.2 124.1 231.8 122.4 116.5 124.5 124.8 242.9 127.2 118.1 130.7 130.7 117.5 119.2 244.6 127.6 118.5 131.0 131.5 118.7 119.4 246.4 128,5 118.8 131.9 132.7 119.6 120.3 248.8 129.4 120.7 132.3 133.5 249.0 129.1 119,9 132.2 133.3 121.5 251.3 129.9 119.6 133.2 134.7 123.0 123.3 98 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 220.8 116.2 243.2 239.0 134.1 121.2 141.6 187.8 191.1 120.7 119.3 316.7 118.5 121.9 178.2 122.1 123.8 216.9 123.5 124.0 119.8 221.2 212.0 201.5 199.9 98.4 262.5 217.0 123.1 247.8 245,8 138.5 123.7 140.4 197.5 205.3 127.8 120.3 331.8 131.2 123.6 178.3 220.1 206.2 102.2 120.6 131.6 133.1 1.23.1 120.1 120.8 122.2 119.7 120.3 121.8 122.1 211.6 104.1 287.8 241.1 127.4 262.9 262.5 151.2 130.3 145.0 202.4 202.5 132.7 128.7 358.0 137.4 135.7 190.2 120.8 120.1 212.0 222.8 121.2 121.8 201.8 122.8 111.2 111.4 122.0 210.8 222.6 211.0 121.0 121.7 201.1 202.2 121.2 210.2 102.2 23. Continued— Consumer Price Index— U.S. city average [1967 = 100 unless otherwise specified] All U rb a n C o n s u m e rs G e n e ra l s u m m a ry U rb a n W a g e E a rn e rs a n d C le ric a l W o rk e rs (re v is e d ) 1980 1981 1980 1981 Jan. Aug. S e p t. O c t. N o v. D ec. Jan. Jan. A ug. S ep t. O c t. N o v. D ec. Jan. Fruits and vegetables — Continued Cut corn and canned beans except lima (12/77=100) . . . Other canned and dried vegetables (12/77=100)............ Other foods at hom e...................................................................... Sugar and sweets.......................................................................... Candy and chewing gum (12/77=100) .................................... Sugar and artificial sweeteners (12/77=100)...................... Other sweets (12/77=100) .............................................. Fats and oils (12/77=100) ...................................................... Margarine ........................................................................ Nondairy substitutes and peanut butter (12/77=100) .......... Other fats, oils, and salad dressings (12/77=100) .............. Nonalcoholic beverages .......................................................... Cola drinks, excluding diet c o la .......................................... Carbonated drinks, including diet cola (12/77=100)............ Roasted coffee ................................................................ Freeze dried and instant coffee.......................................... Other noncarbonated drinks (12/77=100).......................... Other prepared foods .............................................................. Canned and packaged soup (12/77=100).......................... Frozen prepared foods (12/77=100).................................. Snacks (12/77=100)........................................................ Seasonings, olives, pickles, and relish (12/77=100)............ Other condiments (12/77 -100) ........................................ Miscellaneous prepared foods (12/77 = 100) ...................... Other canned and packaged prepared foods (12/77=100) .. 114.5 112.9 283.5 289.8 121.3 122.2 118.7 233.9 248.3 115.3 121.9 378.5 249.5 119.9 443.2 378.2 116.8 218.8 116.5 126.0 121.8 121.4 120.8 119.6 119.4 119.4 118.0 307.8 355.1 132.6 194.6 128.3 242.0 249.3 124.7 126.2 402.8 275.2 131.3 433.9 380.3 123.1 234.9 123.7 134.6 129.3 129.4 131.8 130.9 127.5 121.4 119.6 309.2 361.1 134.2 200.2 129.2 243.6 249.2 125.8 127.4 403.9 276.7 132.5 426.1 376.1 124.5 235.2 123.8 133.9 129.8 130.7 133.0 130.6 126.9 122.5 120.3 311.5 369.0 134.7 209.4 131.5 246.0 254.2 125.6 128.5 404.9 280.4 133.9 411.8 368.1 125.8 236.6 124.1 133.9 130.6 131.9 133.4 132.0 127.9 124.1 121.5 314.8 381.3 135.7 225.9 132,5 247.4 254.9 127.4 129.0 405.5 284.0 133.8 399.2 364.9 1267 239.9 125.1 136.6 135.2 133.5 133.3 133.5 128.6 124.5 122.9 317.1 386.3 136.9 230.3 133.7 251.9 253.6 139.6 129.1 405.2 285.2 134.8 389.7 356.5 127.5 242.4 127.2 137.6 138.6 134.2 133.5 133.8 130.3 126.0 123.4 320.5 385.4 138.6 222.8 137.1 260.4 256.9 156.0 130.3 409.7 290.8 137.5 380.7 354.6 129.1 244.9 128.1 138,6 141.1 135.2 134.4 135.4 131.6 112.7 110.4 282.6 289.6 121.2 122.7 117.5 234.9 248.8 116.1 122.3 375.6 246.5 116.4 440.1 376.8 116.2 219.1 116.8 125.1 122.8 121.1 121.4 199.7 119.5 118.1 116.4 307.4 356.6 133.2 195.1 126.9 242.4 251.5 124.8 125.7 403.0 274.7 128.8 430.4 379.7 122.3 234.2 124.2 131.7 129.9 127.8 133.4 130.2 126.8 119.6 117.9 309.1 361.8 134.7 199.7 127.7 244.6 251.8 1258 127.4 403.6 274.9 130.2 423.1 374.8 123.8 235.6 124.7 131.6 130.4 129.5 135.0 131.1 127.2 120.9 118,5 311.7 369.8 135.4 209.5 129.2 247.0 256.6 125.5 128.7 405.8 279.6 131.8 409.3 366.3 125.3 236.9 124.9 131.9 131.0 132.2 135.3 131.7 128.2 121.8 120.3 315.7 383.9 136.8 225.9 131.9 248.2 256.9 128.0 128.8 407,8 283.6 133.2 395.5 364.0 126.2 240.4 125.6 133.5 136.1 132.8 136.5 133.8 128.9 122,8 121.0 317.8 388.9 137.4 231.4 133.1 252.6 254.6 139.9 129.1 407.4 284.0 133.5 386.2 358.1 127.7 242.8 128.0 134.8 140.1 133.4 136.3 133.5 130.2 124,5 122.1 320.8 387.3 139.4 223.4 135.5 261.8 257.4 156.4 131.0 410.7 288.2 135.0 376.4 355.8 129.6 245.1 127.9 136.9 141.7 134.5 136.3 135.2 132.1 Food away from home.......................................................................... Lunch (12/77=100) ...................................................................... Dinner (12/77=100) ...................................................................... Other meals and snacks (12/77=100) ............................................ 256.1 124.6 124.8 122.5 269.5 131.2 130.7 130.0 271,4 132.1 131.9 130.4 273.1 132.9 132.4 131.8 275.3 134.3 133.4 132.5 277.7 135.7 134.4 133.7 280.9 137.2 136.2 134.7 258.0 125.7 125.6 123.7 272.8 131.8 132.8 132.3 274.9 132.9 133.8 133.3 277.4 134.4 135.1 133.9 279.5 135.7 136.1 134.5 281.8 137.3 136.7 135.6 284.2 138.5 138.2 136.4 A lc o h o lic b e v e ra g e s 179.3 188.7 189.6 190.4 190.9 191.6 193.7 179.7 190.6 191.7 192.5 192.8 193.7 195.5 Alcoholic beverages at home (12/77=100)............................................ Beer and a le .................................................................................. Whiskey ........................................................................................ Wine.............................................................................................. Other alcoholic beverages (12/77=100).......................................... Alcoholic beverages away from home (12/77=100) ................................. 116.8 179.0 131.6 201.6 107.1 118.0 123.1 190.1 136.9 213.9 111.2 123.5 123.6 190.8 137.6 214.7 111.7 124.5 124.0 191.7 137.7 215.4 112.5 125.1 124.4 192.0 138.9 215.2 112.9 125.3 124.9 192.9 138.9 217.6 112.7 125.8 126.1 194.5 140.0 221.7 113.7 127.6 117.6 178.8 132 9 203.8 106.4 115.9 124.6 191.1 137.8 218.1 111.1 123.6 125.1 191.9 138.5 219.8 111.2 124.8 125.6 192.0 139.0 224.2 111.6 125.3 125.9 192.2 139.8 224.0 112.0 125.5 126.5 192.9 140.2 227.2 112.1 126.2 127.6 194.5 141.5 229.4 113.2 127.4 H O U S I N G .............................................................................................................................. 247.3 265.8 267.7 271.1 273.8 276.9 279.1 247.3 265.8 267.6 271.0 273.7 277.1 279.1 F O O D A N D B E V E R A G E S - C o n t in u e d Food C o n tin u e d Food at home — Continued S h e l t e r .................................................................................................................................... 264.0 283.3 285.3 290.4 294.7 298.5 300.1 265.1 284.8 286.8 2920 296.4 300.4 301.7 Rent, residential.................................................................................... 184.1 193.2 195.1 197.1 198.3 199.6 200.9 183.9 193.0 194,8 196.8 198,0 199.4 2006 Other rental costs ................................................................................ Lodging while out of town................................................................ Tenants’ insurance (12/77=100) .................................................... 251.1 267.0 116.2 267.5 286.4 122.2 268.9 2870 124.7 268.8 286.0 125.4 268.3 284.2 126.5 267.7 282.6 126.9 273.9 291.5 127.6 251.1 266.1 116.8 267.3 285.1 122.7 268.6 285.6 125.2 268.8 284.9 126.0 268.4 283.3 126.8 267.3 281.0 127.2 273.6 289.9 128.0 Homeownership.................................................................................... Home purchase.............................................................................. Financing, taxes, and insurance ...................................................... Property insurance .................................................................. Property taxes ........................................................................ Contracted mortgage interest c o s t............................................ Mortgage interest rates...................................................... Maintenance and repairs ................................................................ Maintenance and repair services .............................................. Maintenance and repair commodities ........................................ Paint and wallpaper, supplies, tools, and equipment (12/77=100) ................................................ Lumber, awnings, glass, and masonry (12/77 = 100)............ Plumbing, electrical, heating, and cooling supplies (12/77=100).................................................... Miscellaneous supplies and equipment (12/77=100) .......... 292.5 242.1 359.8 327.7 186.7 452.8 183.7 270.6 293.2 217.6 315.4 258.1 393.6 355.9 190.3 501.8 192.0 288.5 312.4 232.7 317.6 261.5 393.5 359.8 191.2 500.9 188.9 291.6 315.9 234.9 323.8 265.5 404.7 362.0 192.0 518.1 192.6 292.8 317.0 236.3 329.4 267.3 416.9 364.5 192.8 536.7 198.0 294.2 318.6 237.1 334.2 267.2 429.4 365.8194.5 555.5 205.1 296.8 321.5 239.1 335.8 266.2 435.2 369.8 196.0 563.5 209.0 296.8 321.3 239.7 294.6 242.3 363.4 328.8 188.2 453.7 183.8 271.9 295.9 218.4 318.1 258.6 398.8 357.9 192.0 504.2 192.5 287.7 312.1 233.2 320.2 262.1 398.9 362.9 193.0 503.6 189.5 290.3 315.6 233.9 326.7 266.4 410.8 365.3 193.8 521.2 193.0 290.4 315.1 235.0 332.3 268.2 423.1 367.8 194.7 539.7 198.4 291.1 315.9 235.6 337.5 268.0 436.0 369.0 196.4 558.7 205.5 294.2 3203 236.2 338 6 266.4 441.3 373.2 197.9 565.9 209.4 294.1 319.8 236.7 122.5 115.9 134.4 120.1 135.6 122.2 136.9 122.4 137.4 122.3 139.2 123.2 139.5 123.4 122.2 118.6 133.1 120.4 132.7 121,8 133.1 122.5 134.7 122.0 134.9 122.9 135.1 122.7 114.7 115.4 122.7 122.1 123.2 122.7 123.8 123.3 124.2 123.7 124.8 124.2 125.2 124.7 117.0 113.2 126.6 123.9 126.1 125.2 126.6 125.9 124.6 126.4 124.9 126.3 124.5 127.9 Fu el a n d o th e r u t i l i t i e s ................................................................................................... 258.6 286.8 2882 287.6 285.7 289.9 296.7 259.2 287.4 288.7 288.0 286.3 290.7 297.5 Fuels ................................................................................................... Fuel oil, coal, and bottled gas.......................................................... Fuel o il.................................................................................... Other fuels (6/78 = 100) ........................................................ Gas (piped) and electricity .............................................................. Electricity................................................................................ Utility (piped) gas .................................................................... 318.0 514.0 534.4 132.7 273.0 226.6 335.1 362.5 561.5 586.1 140.8 316.1 268.3 375.2 364.5 561.5 585.4 142.1 318.4 269.2 380.2 362.8 558.7 581.5 143.1 317.1 265.3 384.6 358.7 567.0 589.8 145.7 310.5 258.7 379.0 364.7 585.3 610.0 148.4 313.9 262.3 381.5 375,4 625.9 656.0 152.3 318.5 266.9 385.3 318.1 515.1 534.9 133.7 273.0 226.8 333.8 362.1 562.7 586.4 142.5 315.4 268.6 372.0 363.8 562.9 585.9 143,8 317.4 269.6 376.1 362.1 559.9 581.8 144.8 316.0 265.3 380.9 358.2 568.3 590.3 147.3 309.8 258.4 376.7 364.5 587.0 610.9 150.1 313.4 262.1 379.7 375,0 627.9 657.1 154.1 317.7 266.5 383.3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 99 MONTHLY LABOR REVIEW April 1981 • Current Labor Statistics: Consumer Prices 23. Continued— Consumer Price Index — U.S. city average [1967 = 100 unless otherwise specified] U rb a n W a g e E a rn e rs an d C le ric a l W o rk e rs (re v is e d ) All U rb an C o n s u m e rs G e n e ra l s u m m a ry 1980 1981 1980 1981 Jan. Aug. S e p t. O ct. N o v. D ec. Jan. Jan. Aug. S ep t. O ct. N o v. D ec. Jan. Other utilities and public services ............................................................ Telephone serv ces .......................................................................... Local charges (12/77 = 100) .................................................... Interstate toll calls (12/77 - 100) .............................................. Intrastate toll calls (12/77 = 100) .............................................. Water and sewerage maintenance .................................................... 161.5 133.4 102.6 97.7 100.8 250.0 166.5 136.5 105.4 101.9 999 263.5 167.1 137.0 106.0 102.1 100.1 264.5 167.8 137.5 106.6 102.1 100.1 266.2 169.0 138.7 108.3 101.7 100.6 267.0 170.6 140.3 110.5 101.8 100.9 267.8 171.9 141.1 111.6 101.8 101.0 271.4 161.5 133.4 102.6 97.7 100.6 250.5 166.4 136.4 105.2 101.9 99.7 264.5 167.1 136.9 105.9 102.1 100.0 265.5 167.8 137.4 106.5 102.1 99.9 267.3 169.1 138.7 108.3 101.8 100.5 268.0 170.7 140.3 110.6 101.8 100.7 268.7 172.0 141.1 111.7 101.9 100.8 272.5 H o u s e h o ld fu rn is h in g s a n d o p e ra tio n s 196.9 207.2 209.2 210.1 211.0 211.6 212.6 194.9 204.5 206.0 206.8 208.1 209.0 209.7 175.2 189.1 114.1 121.9 192.6 125.8 111.3 111.6 125.7 141.4 106.6 105.0 109.1 164.6 164.4 120.2 113.3 177.3 194.1 118.4 123.6 195.7 127.9 112.7 114.1 127.5 142.0 107.0 105,0 109.8 165.5 164.8 120.9 114.2 177.9 195.9 119.5 124.9 195.2 127.4 113.8 113.0 127.0 142.3 107.1 104.7 110.3 166.0 165.8 121.5 114.2 178.1 192.4 117.3 122.7 196.5 128.6 114.2 113.3 127.9 142.6 107.4 105.1 110.6 166.2 166.1 122.0 114.2 178.3 193.2 117.2 123.8 197.0 129.2 115.3 113.1 127.8 142.4 107.2 105.2 110.1 165.9 166.5 123.4 113.1 178.7 191.9 114.6 124.9 196.6 128.3 114.2 113.1 128.7 143.1 107,4 105.6 110.2 167.2 168.0 123.6 114.2 166.5 175.3 106.0 113.2 183.6 116.8 110.6 109.4 117.8 137.2 104.9 102.2 108.2 157.7 159.4 113.8 108.6 173.5 189.6 114.7 122.4 189.9 123.6 110.4 112.3 122.5 140.6 105.2 103.3 107.9 164.5 168.0 120.1 112.0 175.0 192.5 117.7 122.7 192.0 124.5 111.1 115.1 123,6 141.2 105.7 103.2 108.8 165.2 169.1 120.0 112.5 175.6 195.1 119.5 124.1 192.5 124.6 113.0 114,4 123.6 141.2 105.6 103.2 108.7 165.3 169.4 120.2 112.5 176.4 195.7 122.6 121.2 193.9 125.5 113.6 115.6 124.6 141.4 106.1 103.8 109.1 165.2 169.2 120.2 112.4 176.9 196.6 122.7 122.4 194.4 125.7 114.7 115.2 124.7 142.0 106.1 103.7 109.2 166.3 170.9 121.4 112.8 176.9 193.4 117.0 124.6 193.6 125.1 113.2 114.3 125.6 142.7 106.5 104.2 109.4 167.6 171.7 121.9 114.0 110.0 111.8 111.8 112.4 113.0 112.0 114.8 109.2 111.4 111.8 112.1 112.6 113.9 115.7 111.1 114.6 115,1 121.7 117.0 123.0 116.2 124.1 115.5 124.6 114.3 124.8 113.6 125.6 107.8 113.3 112.6 120.5 113.4 121.6 113.0 122.2 112.1 123.2 111.5 123.1 112.0 123.8 113.1 111.6 121.7 119.8 123.0 120.6 123.3 121.6 124.3 121.4 124.6 121.7 125.7 122.3 108.9 109.4 115.3 117.1 116.8 118.2 118.2 119.4 119.0 119.2 118.4 118.8 118.9 119.2 H O U S IN G C o n tin u e d Fuel an d o th e r u tilitie s C o n tin u e d Housefurnishings .................................................................................... Textile housefurnishings.................................................................... Household linens (12/77 - 100) ................................................ Curtains, drapes, slipcovers, and sewing materials (12/77 = 100) Furniture and bedding ...................................................................... Bedroom furniture (12/77 - 100) .............................................. Sofas (12/77 - 100) ................................................................ Living room chairs and tables (12/77 - 100) .............................. Other furniture (12/77 = 100).................................................... Appliances including TV and sound equipment.................................... Television and sound equipment (12/77 = 100) .......................... Television .......................................................................... Sound equipment (12/77 - 100) ........................................ Household appliances................................................................ Refrigerators and home freezer............................................ Laundry equipment (12/77 = 100) ...................................... Other household appliances (12/77 - 100).......................... Stoves, dishwashers, vacuums, and sewing machines (12/77 - 100) .............................................. Office machines, small electric appliances, and air conditioners (12/77 - 100)................................ Other household equipment (12/77 = 100)........................................ Floor and window coverings, infants’ laundry cleaning and outdoor equipment (12/77 - 100) ...................... Clocks, lamps, and decor items (12/77 = 100) .......................... Tableware, serving pieces, and nonelectric kitchenware (12/77 - 100) .................................................... Lawn equipment, power tools, and other hardware (12/77 = 100) . 167.6 176.7 105,4 115.1 184.0 119.1 108.2 108.9 118.1 137.8 105.3 103.7 107.8 158.5 156.7 114.1 110.5 119.9 110.6 125.8 117.1 128.2 117.2 130.0 117.9 130.6 118.4 130.8 118.7 131.9 118.7 117.3 113.0 125.1 119.6 126.3 120.3 126.3 120.9 127.4 122.3 127.6 122.3 128.0 123.8 Housekeeping supplies............................................................................ Soaps and detergents ...................................................................... Other laundry and cleaning products (12/77 = 100) .......................... Cleansing and toilet tissue, paper towels and napkins (12/77 = 100) .. Stationery, stationery supplies, and gift wrap (12/77 - 100) .............. Miscellaneous household products (12/77 = 100).............................. Lawn and garden supplies (12/77 - 100).......................................... 231.1 224.1 116.1 120.6 111.6 117.7 114.4 249.9 240.1 124.4 132.2 117.4 127.7 127.5 252.0 243.7 125.6 133.8 118.0 129.0 127.1 253.6 248.7 125.7 134.2 118.6 129.5 126.9 256.0 252.4 126.7 135.6 118.3 131.1 128.0 257.7 254.0 127.6 136.1 119.5 132.5 128.4 259.5 255.6 128.8 137.3 119.9 132.6 130.0 228.8 222.2 115.6 121.8 109.0 115.0 111.3 247.8 236.8 123.9 135.1 117.4 125.5 121.4 249.6 241.1 125.0 135.8 116.9 126.6 120.5 251.2 245.6 125.1 136.2 118.2 126.7 121.0 253.5 248.2 126.2 136.6 118.8 128.4 122.5 256.0 252.3 127.6 137.6 120.0 129.5 122.5 257.5 253.4 129.0 139.2 120.7 1293 122.7 Housekeeping services............................................................................ Postage .......................................................................................... Moving, storage, freight, household laundry, and drycleaning services (12/77 = 100) .............................................. Appliance and furniture repair (12/77 = 100) .................................... 260.0 257.3 271.6 257.3 273.3 257.3 274.5 257.3 276.1 257.3 277.1 257.3 279.6 257.3 259.2 257.2 269.0 253.7 270.2 257.3 271.0 257.3 272.5 257.3 273.8 257.3 276.4 257.3 122.9 114.0 131.3 119.4 132.8 119.8 133.3 120.3 134.6 120.7 134.4 121.4 137.0 122.4 123.3 114.4 129.7 118.3 130.3 118.7 130.2 119.2 131.4 119.7 131.8 120.6 134.3 121.5 APPAREL A N D UPKEEP 171.0 178.6 182.2 183.9 184.8 183.9 181.1 169.8 177.9 181.4 182.8 183.3 182.9 180.0 A p p a re l c o m m o d itie s 164.3 171.0 174.9 176.4 177.2 176.0 172.6 163.6 170.7 174.4 175.6 176.0 175.3 172.6 172.5 174.3 109.8 103.5 99.7 123.9 119.7 103.4 113.1 108.6 118.7 114.3 157.4 104.4 161.4 163.8 101.4 116.8 91.9 106.1 101.3 106.1 168.9 171.1 107.5 99.9 95.2 123.9 115.4 103.4 112.0 104.8 119.1 114.8 152.1 100.8 150.4 155.5 98.2 116.0 87.8 102.9 96.0 103.6 160.2 162.4 102.3 94.9 95.6 109.3 108.3 102.2 104.7 99.8 109.7 106.6 149.9 100.1 165.0 150.0 97.1 109.1 94.0 97.9 91.9 99.8 167.3 168.4 106.1 95.2 98.0 116.3 115.1 105.0 108.6 107.1 112.9 108.2 154.1 102.5 170.2 151.1 99.7 114.3 91.3 102.3 99.5 100.7 171.1 171.6 108.3 98.3 100.0 117.5 117.4 107.1 110.2 109.6 113.7 109.4 159.8 107.0 177.0 156.8 104.6 114.8 105.7 103.3 97.3 104.2 172.2 173.8 109.Ü 99.7 101.3 118.8 118.5 108.3 112.0 111.2 115.1 111.5 160.3 107.0 176.5 157,5 103.6 115.3 106.8 105.1 99,0 106.3 172.5 174.8 110.2 99.4 101.9 119.7 120.4 108,7 112.7 112.5 115.2 111.9 159.9 106.6 175.5 157.7 102.8 116.4 102.8 105.3 99.1 106.8 171.6 174.4 109.9 98.2 101.9 120.0 120.7 108.1 112.6 111.8 116.2 112.0 158.2 105.3 172.2 154.3 98,2 116.6 98.2 104.9 98.6 106.6 168.7 171.7 107.9 95.1 97.4 119.9 116.7 108.2 111.6 107.9 115.8 112.9 153.9 102.3 162.1 147.3 95.5 115.6 95.5 102.5 94,4 104.4 113.8 113.1 104.4 109.6 111.3 112.8 112.6 112.2 112.2 Apparel commodities less footwear.................................................... Men's and boys’ .............................................................................. Men’s (12/77 - 100) ................................................................ Suits, sport coats, and jackets (12/77 - 100) ...................... Coats and jackets (12/77 = 100)........................................ Furnishings and special clothing (12/77 = 100) .................... Shirts (12/77 - 100) .......................................................... Dungarees, jeans, and trousers (12/77 = 100) .................... Boys' (12/77 - 100) ................................................................ Coats, jackets, sweaters, and shirts (12/77 = 100) .............. Furnishings (12/77 = 100) .................................................. Suits, trousers, sport coats, and jackets (12/77 = 100) ........ Women's and girls' .......................................................................... Women's (12/77 - 100)............................................................ Coats and jackets .............................................................. Dresses .............................................................................. Separates and sportswear (12/77 - 100)............................ Underwear, nightwear, and hosiery (12/77 = 100)................ Suits (12/77 - 100)............................................................ Girls (12/77 - 100) .................................................................. Coats, jackets, dresses, and suits (12/77 = 100).................. Separates and sportswear (12/77 = 100)............................ Underwear, nightwear, hosiery, and accessories (12/77 - 100).............................................. 100 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 161.1 162.8 102.6 98.8 95.5 112.2 108.6 98.2 105.6 99.3 111.5 108.2 151.5 100.8 166.4 161.3 96.1 108.6 91.0 100.5 97.5 99.9 167.8 167.9 105.6 99.2 96.7 119.3 114.9 99.5 109.5 106.0 114.6 110.3 153.7 101.7 164.0 158.3 98.5 114.2 86.5 104.5 103.4 102.0 171.8 171.7 108.1 103.2 99.9 120.8 116.9 101.2 111.4 108.1 116.6 111.9 159.0 105.7 168.9 168.5 102.2 114.6 95.4 105.8 102.1 105.3 173.1 173.9 109.5 104.3 100.4 122.9 118.3 102.6 113.0 109.2 118.1 113.9 159.7 106.1 167.0 170.0 101.6 114.9 98.2 107.0 103.2 106.7 173.9 174.8 110.1 104.7 100.5 123.3 119.6 103.5 113.3 109.4 118.4 114.3 159,9 106.3 164.7 168.1 102.9 116.7 97.4 106.5 102.7 105.9 106.7 111.2 113.0 113.8 114.0 23. Continued — Consumer Price Index — U.S. city average [19(57 = 100 unless otherwise specified] All U rb a n C o n s u m e rs G e n e ra l s u m m a ry U rb a n W a g e E a rn e rs an d C le ric a l W o rk e rs (re v is e d ) 1980 1981 1980 1981 Jan. A ug. S e p t. O ct. Nov. D ec. Jan. Jan. A ug. S ep t. O ct. Nov. D ec. Jan. Apparel commodities less footwear - Continued Infants’ and toddlers’ ...................................................................... Other apparel commodities ............................................................ Sewing materials and notions (12/77 = 100) ............................ Jewelry and luggage (12/77 = 100) ........................................ 224.9 184.4 103.2 126.1 243.9 209.9 110.2 146.5 242.4 210.5 110.9 146.8 244.1 211.8 111.9 147.5 248.9 213.7 110.3 149.9 250.1 213.3 110.6 149.5 249.7 214.2 111.9 149.7 229.1 185.5 101.2 128.4 252.6 204.1 110.0 142.0 248.3 204.4 110.7 142.0 249.2 204.1 112.0 141.1 254.0 204.0 110.2 141.8 255.4 204.4 110.0 142.3 256.9 205.3 110.8 142.8 Footwear ............................................................................................... Men’s (12/77 = 100) .................................................................... Boys’ and girls’ (12/77 = 100) ...................................................... Womens' (12/77 = 100)................................................................ 183.7 117.8 117.3 111.6 190.3 121.3 122.8 115.4 193.2 123.6 123.3 117.7 196.1 124.7 125.8 119.6 196.5 125.4 126.2 119.4 196.6 124.6 126.6 120.0 194.9 124.4 125.7 118.1 183.3 119.3 116.9 109.4 190.0 123.4 123.9 111.7 193.3 124.9 124.6 115.1 195.6 125.8 126.9 116.3 196.4 126.7 127.4 116.5 196.7 126.0 127.8 117.5 195.5 ' 126.1 127.0 115.9 A p p a re l s e rv ic e s 220.7 129.3 119.6 235.4 138.3 126.9 237.3 140.0 126.9 240.0 141.1 129.2 241.9 142.4 130.0 243.4 143.5 130.5 246.3 145.3 131.7 216.9 129.0 115.1 233.7 138.4 125.0 2345 139.1 125.1 238.1 140.9 127.4 239.9 141.6 129.1 242.2 143.2 129.9 245.5 145.5 131.1 APPAREL AN D UPKEEP C o n tin u e d A p p a re l c o m m o d itie s — C o n tin u e d Laundry and drycleaning other than coin operated (12/77 = 100)............ Other apparel services (12/77 = 100) .................................................. T R A N S P O R T A T IO N 233.5 252.7 254.7 256.1 259.0 261.1 264.7 234.1 253.5 255.2 256.6 259.7 261.9 265.7 P r i v a t e .................................................................................................................................... 233.5 251.6 253.2 254.5 257.4 2594 262.9 234.1 252.7 254.1 255.5 258.6 260.8 264.4 New cars ............................................................................................. Used c a rs ............................................................................................. Gasol.ne .............................................................................................. Automobile maintenance and repair........................................................ Body work (12/77 = 100).............................................................. Automobile drive train, brake, and miscellaneous mechanical repair (12/77 = 100) ................................................ Maintenance and servicing (12/77 = 100) ...................................... Power plant repair (12/77 = 100) .................................................. Ottier private transportation .................................................................. Other private transportation commodities ........................................ Motor oil, coolant, and other products (12/77 = 100) ................ Automobile parts and equipment (12/77 = 100)........................ Tires ................................................................................ Other parts and equipment (12/77 = 100) ........................ Other private transportation services................................................ Automobile insurance .............................................................. Automobile finance charges (12/77 = 100) .............................. Automobile rental, registration, and other fees (12/77 = 100) . . . State registration .............................................................. Drivers’ license (12/77 = 100) .......................................... Vehicle inspection (12/77 = 100) ...................................... Other vehicle related fees (12/77 = 100) .......................... 173.9 197.2 334.6 255.1 125.0 181.1 206.4 375.9 271.1 133.0 181.7 214.6 373.0 273.8 133.8 181.9 222.7 370.5 276.0 135.0 184.3 230.8 370.5 278.4 136.1 184.5 234.4 373.3 280.1 136.8 185.3 234.0 385.2 282.7 137.3 174.1 197.2 335.9 256.2 124.3 181.9 206.4 377.1 272.2 132.4 182.3 214.6 373.9 273.9 133.0 182.0 222.7 371.7 276.6 134.6 184.5 230.8 371.7 278.9 135.9 184.6 234.4 374.4 280.6 136.7 185.7 234.0 386.6 283.2 137.3 121.8 120.2 120.4 209.8 188.4 120.9 121.9 165.8 126.6 217.6 237.1 129.9 109.1 144.2 104.7 117.5 118.8 129.0 128.4 127.3 224.7 198.3 136.3 127.0 175.9 126.2 233.9 250.2 148.2 114.0 146.5 104.9 122.8 128.3 130.9 129.4 128.7 226.0 200.9 137.5 128.8 178.8 127.3 234.9 251.3 148.6 114.5 146.5 104.9 122.8 129.8 132.7 130.0 129.8 226.5 200.9 136.5 128.9 179.2 126.9 235.6 251.5 149.9 114.6 146.5 104.9 122.9 130.0 133.6 131.0 131.3 228.8 203.1 137.8 130.3 181.7 127.3 2379 251.9 154.4 115.0 146.6 105.0 123.2 130.7 134.0 131.6 132.7 231.0 203.6 138.8 130.6 182.1 127.6 240.6 252.5 159.4 115.8 146.9 105.3 124.3 132.7 135.8 132.5 134.4 232.4 203.7 139.1 130.6 181.5 128.6 242.4 252.3 163.4 116.2 146.9 105.3 124.8 133.7 123.6 120.4 120.9 210.6 188.0 122.4 121.4 166.3 124.0 218.7 236.8 129.4 109.8 144.1 104.5 118.3 123.8 131.5 128.4 127.5 226.8 200.6 136.1 128.7 179.9 125.2 236.0 249.9 147.5 115.4 146.4 104.6 123.5 136.6 131.8 129.5 128.5 227.6 201.9 135.6 129.8 181.5 125.8 236.7 250.9 147.5 115.8 146.5 104.6 123.5 137.8 133.9 130.2 129.6 228.0 201.4 135.4 129.4 180.8 125.7 237.3 251.2 148.3 116.3 146.5 104.7 123.6 139.1 135.0 131.1 130.8 230.6 203.4 137.3 130.6 182.5 126.9 240.1 251.5 153.2 116.7 146.6 104.7 123.9 140.0 135.6 131.7 132.2 233.2 205.7 139.0 132.0 184.7 127.8 242.9 252.0 157.9 117.5 147.0 105.1 125.1 142.0 137.5 132.7 133.5 235.0 206.2 139.2 132.4 184.8 128.9 244.9 251.8 161.7 118.2 146.9 105.1 125.6 144.1 P u b l i c ................................................................................................................................. 226.8 261.5 271.0 273.6 277.0 280.1 286.4 221.9 256.9 264.4 266.5 269.2 271.8 279.0 Airline fare........................................................................ Intercity bus fare .................................................................................. Intracity mass transit ............................................................................ Taxi fare .............................................................................................. Intercity train fa re .................................................................................. 251.1 284.7 198.5 243.1 237.2 289.8 297.9 234.1 266.2 255.4 310.3 304.7 234.8 2668 255.5 315.0 307.1 235.6 267.9 255.6 321.8 308.0 236.1 269.2 255.6 327.4 310.1 237.1 269.7 270.1 331.9 310.7 247.1 271.0 276.4 251.0 284.8 196.7 248.9 237.1 287.9 2980 233.8 273.0 255.6 308.6 304.5 234.4 273.6 255.6 313.0 306.9 235.2 274.7 255.7 319.8 308.0 235.6 275.6 255.7 325.7 309.8 236.5 275.9 270.3 330.2 310.6 246.5 277.5 276.8 M E D IC A L C A R E 253.9 268.4 270.6 272.8 274.5 275.8 279.5 254.9 270.0 272.2 274.3 276.3 277.6 281.4 M e d ic a l c a re c o m m o d itie s 160.5 170.2 171.3 172.5 173.8 175.1 176.7 161.0 170.8 171,8 173.0 174.1 175.6 177.5 Prescription drugs ................................................................................ Anti-infective drugs (12/77 = 100) .................................................. Tranquilizers and sedatives (12/77 = 100) ...................................... Circulatories and diuretics (12/77 = 100)........................................ Hormones, diabetic drugs, biologicals, and prescription and supplies (12/77 = 100) ...................................... Pain and symptom control drugs (12/77 = 100) .............................. Supplements, cough and cold preparations, and respiratory agents (12/77 = 100)................................................ 147.9 115.8 119.9 112.4 156.4 120.5 126.1 116.0 157.5 122.4 126.3 116.9 158.5 124.1 127.1 117.3 159.6 124.6 128.9 118.3 160.7 124.7 130.2 119.1 162.7 127.7 130.7 120.6 148.8 118.2 119.7 113.0 157.4 121.6 125.4 118.2 158.5 123.4 125.4 118.9 159.5 125.1 126.2 119.3 160.2 125.6 127.7 119.9 161.5 126.4 128.6 120.2 163.4 128.6 129.4 121.3 126.0 118.8 138.2 125.2 138.9 125.6 139.6 126.3 140.4 126.7 142.3 126.9 143.9 128.7 124.8 119.0 137.0 127.6 138.1 128.1 138.8 128.7 139.6 128.3 141.7 129.6 143.8 131.4 112.6 119.9 120.5 120.4 121.2 122.4 123.2 114.2 121.2 121.8 122.1 122.3 123.1 123.8 Nonprescription drugs and medical supplies (12/77 =100) .................... Eyeglasses (12/77 = 100) ............................................................ Internal and respiratory over-the-counter drugs ................................ Nonprescription medical equipment and supplies (12/77 = 100)........ 115.3 111.5 179.1 113,8 122.6 119.9 190.4 119.9 123.3 120.5 191.2 120.8 124.4 121.0 1935 121.3 125.3 121.2 195.8 121.5 126.2 120.8 198.1 122.5 127.1 121.5 199.3 123.6 115.6 111.4 179,0 115.0 122.9 118.4 191.6 119.9 123.6 119.0 192.4 121.2 124.4 119.6 194.0 121.8 125.5 120.2 195.8 123.0 126.5 120.4 198.0 123.7 127.9 121.1 200.4 125.1 M e d ic a l c a re s e rv ic e s 274.4 289.8 292.3 2948 296.6 297.9 302.1 275.6 291.7 294.3 296.6 2987 300.0 304.3 Professioqal services ............................................................................ Physicians’ services........................................................................ Dental services.............................................................................. Other professional services (12/77 = 100)...................................... 238.9 256.0 227.4 116.6 254.7 272.2 242.2 126.0 257.3 274.2 245.8 126.7 259.0 276.0 247.5 127.6 260.4 278.0 248.0 128,5 261.7 280.3 248.6 128.5 254.7 283,9 251.4 129,3 241.7 260.3 229.5 115.9 257.8 277.6 244,5 123.9 260.4 280.5 247.3 124.5 261.9 281.8 249.0 125.1 263.8 283.8 250.4 126.7 265.0 285,7 251.3 126.6 268.7 290.0 254.9 127.6 Other medical care services.................................................................. Hospital and other medical services (12/77 = 100).......................... Hospital room.......................................................................... Other hospital and medical care services (12/77-100).............. 317.4 125.6 395.3 124.7 332.3 135.4 424.0 135.1 334.7 137.1 428.4 137.0 338.0 139.3 435.8 139.0 340.5 141.1 441.0 140.9 341.6 141.7 443.7 141.4 347.3 144.5 453.8 143.7 317.3 124.9 393.9 123.8 3333 134.9 422.4 134.4 335.6 136.4 427.2 136.0 339.2 138 9 435.3 138.4 341.6 140.5 439.8 140.2 342.9 141.3 443.1 140.6 347.8 143.7 451.9 142.7 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 101 MONTHLY LABOR REVIEW April 1981 • Current Labor Statistics: Consumer Prices 23. Continued — Consumer Price Index — U.S. city average [1967=100 unless otherwise specified] U rb a n W a g e E a rn e rs a n d C le ric a l W o rk e rs (re v is e d ) All U rb a n C o n s u m e rs G e n e ra l s u m m a ry 1980 Jan. Aug. S e p t. O ct. Nov. D ec. Jan. 1981 1980 1981 Jan. Aug. S e p t. O ct. N o v. D ec. Jan. E N T E R T A IN M E N T .............................................................................................................. 195.3 208.0 209.8 210.9 211.2 212.0 214.4 193.9 205.6 208.1 209.2 209.9 210.1 212.2 E n te rta in m e n t c o m m o d itie s 197.6 210.8 212.8 213.7 214.5 215.3 217.1 194.2 206.4 208.6 209.0 210.2 210.9 213.0 Reading materials (12/77 = 100).......................................................... Newspapers .................................................................................. Magazines, periodicals, and books (12/77 = 100)............................ 116.7 226.8 118.1 123.2 240.7 124.0 126.1 242.3 129.3 127.0 245.3 129.6 127.6 245.6 130.7 128.2 246.2 131.5 130.0 249.7 133.4 116.2 226.4 117.8 122.7 239.9 123.7 125.5 241.5 129.3 126.6 244.6 129.6 127.1 244.9 130.8 127.6 245.5 131.5 129.6 249.4 133.5 Sporting goods and equipment (12/77 = 100)........................................ Sport vehicles (12/77 = 100) ........................................................ Indoor and warm weather sport equipment (12/77 = 100)................ 3'Cydes ........................................................................................ Other sporting goods and equipment (12/77 = 100) ........................ 113.8 ( 1) 107.6 170.5 111.8 120.9 122.2 113.5 183.6 116.5 121.1 (’ ) 113.8 184.7 117.2 121.8 <1) 114.5 185.3 118.2 122.8 ( 1) 114.7 185.7 119.9 122.9 ( 1) 116.2 184.7 120.4 123.5 108.6 ( 1) 106.4 170.5 111.9 115.3 113.5 111.7 183.2 116.9 115.8 ( 1) 112.1 184.9 117.4 116.3 ( 1) 112.5 185.4 117.8 117.0 (’ ) 112.2 185.8 119.1 117.8 (’ > 115.7 185.9 120.9 (’ ) 113.4 184.9 119.3 118.5 ( 1) 114.5 186.7 119.2 Toys, hobbies, and other entertainment (12/77 = 100)............................ Toys, hobbies, and music equipment (12/77 - 100) ........................ Photographic supplies and equipment (12/77 = 100)........................ Pet supplies and expense (12/77 = 100) ........................................ 113.2 112.1 110.8 116,8 121.8 120.4 122.5 123.9 122.6 121.4 123.1 124.4 122.8 120.9 123.1 125.8 122.8 120.7 121.8 127.3 123.5 121.3 122.0 128.4 124.4 122.4 121.5 130.1 112.6 110.9 111.2 116.7 120.3 117.8 121.7 123.8 121.3 119.0 121.8 125.2 120.9 117.4 122.3 126.4 121.6 118.4 122.7 126.8 121.8 118.5 122.4 127.6 122.9 119.4 122.3 129.7 E n te rta in m e n t s e rv ic e s ................................................................................................ 192.5 204.3 206.1 207.2 206.9 207.8 210.9 194.4 205.2 208.4 210.6 210.5 209.7 212.0 Fees for participant sports (12/77 = 100).............................................. Admissions (12/77 - 100).................................................................... Other entertainment services (12/77 - 100).......................................... 114.6 117.9 109.1 123.2 122.1 117.4 124.5 122.6 118.3 125.5 122.7 119.0 125.2 122.6 118.7 125.7 123.1 119.4 128.1 124.7 120.1 115.6 119.4 109.3 121.8 124.2 119.1 124.7 124.1 120.8 127.0 124.2 121.6 126.7 124.3 121.6 125.9 124.0 121.8 127.8 125.2 122.0 O T H E R G O O D S A N D S E R V IC E S ................................................................................ 206.3 214.5 220.6 221.5 222.8 224.6 226.2 206.0 214.0 219.0 219.9 221.0 223.0 224.4 T o b a c c o p ro d u c ts ........................................................................................................... 196.7 204.5 204.5 204.5 207.3 210.8 211.9 197.1 204.4 204.3 204.3 2068 210.4 211.7 Cigarettes............................................................................................. Other tobacco products and smoking accessories (12/77 - 100)............ 199.7 113.9 207.0 122.0 206.8 122.8 206.8 123.2 209.6 124.3 213.5 124.9 214.6 125.4 200.3 113.4 207.0 121.7 206.8 122.7 206.7 123.1 209.3 123.9 213.2 124.5 214.5 125.4 P e rs o n a l c a re ................................................................................................................... 204.2 215.4 216.7 217.8 219.0 220.9 222.5 204,4 214.7 216.6 218.0 218.5 220.0 221.1 Toilet goods and personal care appliances.............................................. Products for the hair, hairpieces and wigs (12/77 - 100).................. Dental and shaving products (12/77 - 100).................................... Cosmetics, bath and nail preparations, manicure and eye makeup implements (12/77 - 100) ................................ Other toilet goods and small personal care appliances (12/77 = 100) 196.4 114.2 117.8 209.0 121.7 125.2 210.3 121.8 125.3 211.8 124.5 126.0 212.4 124.5 127.2 215.2 125.2 128.4 216.9 126.3 130.8 196.2 114.0 115.3 208.8 122.5 123.6 210.4 123.6 124.0 212.1 123.6 125.3 212.7 123.2 125.9 214.3 125.3 125.4 216.1 126.2 128.3 112.9 112.1 119.6 119.9 121.3 120.8 121.3 120.8 120.8 122.2 122.6 124.8 122.9 125.5 112.9 114.0 118.5 121.5 119,7 122.1 121.1 123.6 121.0 125.3 121.4 126.8 222.2 126.6 Personal care services.......................................................................... Beauty parlor services for women.................................................... Haircuts and other barber shop services for men (12/77 = 100) . . . . 211.6 213.3 118.1 221.7 222.5 124.8 223.1 224.5 124.8 223.8 225.2 125.3 225.5 227.5 125.6 226.8 228.7 126.4 228.3 230.1 127.3 212.7 214.2 118.8 220.7 222.0 123.4 222.9 225.0 123.9 224.0 225.6 125.0 224.4 226.1 125.2 225.8 227.5 126.0 226.3 227.6 126.7 P e rs o n a l a n d e d u c a tio n a l e x p e n s e s 226.3 231.4 249.5 251.1 251.3 251.5 253.6 226.2 231.8 249.8 251.2 251.4 251.7 254.0 School books and supplies.................................................................... Personal and educational services.......................................................... Tuition and other school fees .......................................................... College tuition (12/77 = 100) .................................................. Elementary and high school tuition (12/77 = 100) .................... Personal expenses (12/77 = 100).................................................. 206.0 231.4 118.3 117.6 120.9 120.1 207,7 237.1 119.4 118,7 122.0 130.7 221.0 256.2 131.6 130.7 134.4 130.5 221.9 257.8 132.2 131.5 134.4 132.4 221.9 258.1 132.2 131.5 134.4 133.0 222.1 258.2 132.2 131.5 134.4 133.4 228.6 259.7 132.6 132.0 134.4 135.7 209.8 230.6 118.4 117.6 120.7 117.7 211.5 237.1 119.5 118.7 121.8 128.5 224.8 256.1 131.8 130.7 134.3 129.7 225.6 257.5 132.4 131.5 134.3 131.0 225.6 257.8 132.4 131.5 134.3 131.6 225.8 258.1 132.4 131.5 134.3 132.2 232.4 259.6 132.8 132.0 134.3 134.4 329.9 310.5 225.0 284.7 370.7 338.3 251.9 300.8 367.9 338.6 254.8 303.6 365.5 346.4 254.9 304.7 365.5 355.3 253.1 306.4 368.3 364.5 255.8 308.4 379.9 368.9 259.4 309.5 331.3 310.0 224.4 286.0 371.8 338.7 251.2 299.7 368.7 339.0 253.6 302.3 366.6 346.7 253.5 302.4 366.7 355.6 251.6 303.5 369.4 364.7 254.4 306.6 381.2 368.8 258.0 307.4 S p e c ia l in d e x e s : Gasoline, motor oil, coolant, and other products...................................... Insurance and finance .......................................................................... Utilities and public transportation............................................................ Housekeeping and home maintenance services ...................................... 1Not available. 102 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 24. Consumer Price Index for All Urban Consumers: Cross classification of region and population size class by expenditure category and commodity and service group [December 1977 = 100] S iz e c la s s A S iz e cla s s B S iz e c la s s C S ize c la s s D (1 .2 5 m illio n o r m o re ) (3 8 5 ,0 0 0 -1 .2 5 0 m illion) (7 5 ,0 0 0 -3 8 5 ,0 0 0 ) (7 5 ,0 0 0 o r less) C a te g o ry a n d g ro u p 1980 Aug. O ct. 1980 D ec. Aug. O ct. 1980 D ec. A ug. 1980 O ct. D ec. A ug. O ct. D ec. N o rth e a s t E X P E N D IT U R E C A T E G O R Y All Items ...................................................................... Food and beverages .................................................................................. Housing ........................................................ Apparel and upkeep .................................................................................... Transportation............................................................................................ Medical care.................................................................................. Entertainment .......................................................................... Other goods and services ............................................................................ 129.1 129.5 131.2 112.0 138.0 125.1 118.3 117.2 130.5 131.0 131.8 116.2 139.4 126.3 120.0 121.2 132.8 132.8 135.2 114.8 141.9 128.0 120.7 122.7 134.8 131.0 139.7 113.1 143.5 124.4 121.1 120.0 137.2 133.7 141.9 116.2 145.3 127.2 122.7 124.0 139.8 135.8 144.6 116.8 149.4 129.3 123.2 127.5 138.3 133.4 148.4 113.9 140.3 125.0 118.9 123.3 141.2 134.7 151.0 124.6 142.8 129.1 120.1 127.8 143.8 137.7 153.7 124.8 146.5 130.1 120.4 130.3 134.1 130.4 138.7 115.0 141.4 125.2 124.4 118.3 135.6 131.5 139.9 118.6 143.1 126.9 125.2 122.0 137.8 132.8 142.0 120.3 146.5 130.7 126.7 124.4 130.4 131.0 127.4 131.8 132.3 128.8 133.7 134.3 131.6 136.1 138.5 132.8 138.3 140.5 135.4 140.8 143.2 138.3 136.9 138.6 140.4 139.9 142.3 143.4 142.1 144,1 146.7 135.1 137.3 132.5 136.6 139.1 134.0 138.1 140.7 137.3 C O M M O D IT Y A N D S E R V IC E G R O U P Commodities .............................................................................................. Commodities less food and beverages .......................................................... Services .............................................................................................. N o rth C e n tra l E X P E N D IT U R E C A T E G O R Y All items ................................................................ Food and beverages .......................................................................... Housing .............................................................................................. Apparel and upkeep .......................................................................... Transportation............................................................................................ Medical care............................................................................................ Entertainment ........................................................................................ Other goods and services ........................................................................ 136.8 131.5 145.4 109,0 141.0 127.8 122.4 118.6 140.8 133.1 151.9 112.1 143.2 129.1 124.5 122.6 143.3 135.0 155.3 110.8 146.4 130.5 125.1 124.2 134.7 129.8 139.4 112.9 141.3 128.8 118.6 124.4 137.6 130.8 143.7 118.2 143.0 129.6 121.1 128.4 140.0 132.9 146,0 118.8 146.8 131.4 121.3 130.3 132.9 131.8 135.3 112.0 141.6 129.1 122.7 118.8 135.1 133.7 137.9 115.3 142.9 130.6 124.3 122.5 136.6 135.1 139.1 114.8 146.2 132.4 124.0 123.9 131.7 133.9 131.5 113.6 140.4 133.7 116.9 122.9 134.6 135.8 135.3 115.5 142.2 133.3 121.1 128.4 136.2 139.1 135.9 116.2 145.4 134.6 120.8 129.8 134.5 135.9 140.3 138.1 140.4 144.9 139.9 142.3 148.4 132.4 133.4 138.4 135.0 136.8 141.8 136.5 138.0 145.6 131.9 131.9 134.5 133.9 134.0 137.1 135.2 135.3 138.9 129.8 128.0 134.8 132.6 131.2 137.7 133.4 130.9 140.6 C O M M O D IT Y A N D S E R V IC E G R O U P Commodities.......................................................................... Commodities less food and beverages .......................................................... Services .......................................................................................................... S o u th E X P E N D IT U R E C A T E G O R Y All items .................................................................. Food and beverages .................................................................................... Housing ........................................................................................ Apparel and upkeep .................................................................................... Transportation.............................................................................................. Medical care................................................................................................ Entertainment ........................................................................................ Other goods and services ............................................................................ 134.8 132.3 138.2 116.7 143.5 125.4 119.5 122.3 136.7 134.6 139.8 119.9 145.0 126.8 120.2 126.4 139.0 136.8 143.1 120.0 146.8 127.9 120.4 128.1 135.4 131.3 140.5 114.1 142.0 127.5 124.0 121.3 138.1 133.0 143.5 116.4 144.5 130.9 125.3 126.8 140.9 135.4 146.7 117.3 147.9 132.1 127.9 128.8 133.7 132.8 137.1 109.4 141.1 128.8 122.0 121.6 136.1 134.8 139.7 111.8 143.0 132.7 125.0 124.7 138.6 137.2 142.5 114.1 145.7 133.7 127.5 126.7 131.9 132.4 132.4 105.6 140.4 133.9 130.5 125.1 134.1 134.5 133.7 110.5 142.2 140.2 132.4 128.2 136.5 136.9 137.5 108.9 144.8 140.7 130.7 129.9 133.1 133.5 137,1 135.4 135.8 138.4 137.2 137.3 141.5 132.7 133.3 139.5 135.2 136.1 142.6 137.5 138.3 146.1 131.9 131.5 136.4 134.1 133.8 139.2 136.3 135.9 142.3 131.3 130.9 132.7 133.4 133.0 135.0 135.6 135.0 138.0 C O M M O D IT Y A N D S E R V IC E G R O U P Commodities........................................................................................ Commodities less food and beverages .......................................................... Services .............................................................................................. W est E X P E N D IT U R E C A T E G O R Y All Items ................................................................................ Food and beverages .......................................................................... Housing .......................................................................... Apparel and upkeep ........................................................................ Transportation.............................................................................................. Medical care................................................................................................ Entertainment .............................................................................. Other goods and services ............................................................................ 135.5 130.5 139.2 116.4 142.8 130.6 120.8 122.8 137.7 132.7 141.6 117.9 144.9 133.0 122.3 126.2 140.7 134.3 146.0 117.9 146.7 134.3 123,8 127.7 136.8 133.1 140.9 119.5 142.4 129.0 125.9 125.7 139.5 135.0 144.7 121.5 144.3 130.7 125.7 128.1 141.4 136.5 146.7 123.8 146.6 133.1 125.0 129.0 134.2 129.5 137.2 108.5 143.6 132.2 125.2 120.2 136.3 131.7 139.4 111.2 145.9 133.3 126.9 122.3 138.4 132.7 142.1 112.0 148,5 134.5 126.3 125.2 135.4 132.9 135.6 126.3 143.5 134.1 131.5 124.5 136.9 135.6 136.2 129.1 145.9 134.9 131.2 128.1 139.8 137.3 140.6 129.0 148.0 136,6 133.5 130.4 132.3 133.1 139.7 134.2 134.8 142.5 135.3 135.7 147.8 134.6 135.2 140.0 136.3 136.8 144.0 137.5 138.0 146.7 132.2 133.3 137.1 134.1 135.1 139.5 135.2 136.2 142.9 134.1 134.6 137.3 135.7 135.7 138.7 137.2 137.1 143.8 C O M M O D IT Y A N D S E R V IC E G R O U P Commodities...................................................................... Commodities less food and beverage ............................................................ Services ............................................................................................................ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 103 MONTHLY LABOR REVIEW April 1981 • Current Labor Statistics: Consumer Prices 25. Consumer Price Index— U.S. city average, and selected areas [1967=100 unless otherwise specified] U rb a n W a g e E a rn e rs an d C le ric a l W o rk e rs (re v is e d ) All U rb a n C o n s u m e rs A re a ' Jan. Aug. S ep t. O ct. N o v. D ec. Jan. Jan. U.S. city average2 .............................................................. 233.2 249.4 251.7 253.9 256.2 258.4 260.5 2333 Anchorage, Alaska (10/67 -100) ........................................ Atlanta, Ga........................................................................... Baltimore, Md....................................................................... Bostor. Mass........................................................................ Buffalo, N.Y.......................................................................... 218.2 240.1 215.9 264.3 256.4 234.5 226.9 230.9 234.4 227.3 230.3 239.5 Detroit, Mich......................................................................... Honolulu, Hawaii ................................................................ Houston, Tex........................................................................ Kansas City, Vlo -Kansas .................................................... Los Angeles-Long Beach, Anaheim, Calif................................ 237.2 Miami, Fla. (11/77-100) .................................................... Milwaukee, Wis..................................................................... Minneapolis-St. Paul, Minn.-Wis.............................................. New York, N.Y.-Northeastern N.J........................................... Northeast, Pa. (Scranton).................................................... 123.3 236.4 245.2 239.6 250.1 259.9 253.9 258.5 226.1 224.4 227.2 Philadelphia, Pa.-N.J............................................................. Pittsburgh, Pa....................................................................... Portland, Oreg.-Wash............................................................ St. Louis, Mo.-lll.................................................................... San Diego, Calif................................................................... 244.6 232.7 254.0 San Francisco-Oakland, Calif................................................ Seattle-Everett, Wash........................................................... Washington, D.C.-Md.-Va...................................................... 236.0 231.9 255.1 230.1 268.6 250.8 247.3 259.5 249.6 246.0 250.7 241.8 243.1 247.2 255.5 247.9 256.3 244.7 247.0 249.2 D ec. Jan. 249.6 251.9 254.1 256.4 258.7 260.7 226.7 260.3 229.9 241.0 269.7 236.1 274.8 259.1 258.7 259.0 247.3 250.5 262.0 249.5 261.7 254.4 257.4 277.3 250.9 268.5 236.4 259.4 235.0 137.3 266.2 124.9 240.8 249.4 252.4 253.2 225.5 225.8 228.0 266.4 255.7 287.7 243.5 233.5 251.0 264.9 257.2 233.8 233.0 257.7 252.0 247.3 251.2 241.5 246.9 248.3 258.9 263.6 258.4 282.2 265.5 237.0 272.1 257.2 262.2 135.6 267.5 256.6 242.6 249.5 257.6 244.2 249.5 251.1 264.4 262.7 138.8 271.9 260.6 247.2 252.3 262.9 260.7 254.2 275.1 255.4 252.7 267.7 258.1 266.3 266.7 268.2 276.7 261.4 233.5 269.4 253.0 254.9 134.9 263.2 250.6 240.7 262.6 255.7 245.2 258.9 236.5 264.2 262.9 270.9 253.8 229.5 265.5 249.3 250.1 260.3 257.4 249.2 252.8 258.9 264.5 235.0 232.0 252.4 2532 244.5 238.2 261.9 253.8 279.1 256.9 252.4 271.8 N o v. 245.4 133.9 262.1 255.5 243.1 O ct. 235.5 266.5 269.5 266.4 S ep t. 246.5 271.9 264.3 234.6 272.3 254.8 252.6 133.1 258.4 250.1 240.8 259.9 262.1 264.6 264.9 266.6 247.3 232.6 253.7 Aug. 249.7 258.3 258.4 248.8 255.0 244.4 236.8 Chicago, lll.-Northwestern Ind................................................ Cincinnati, Ohio-Ky.-Ind.......................................................... Cleveland, O hio.................................................................. Dallas-Ft. Worth, Tex............................................................ Denver-Boulder, Colo............................................................ 236.5 250.2 246.5 1981 1980 1981 1980 249.1 255.1 255.5 265.0 255.9 282.9 251.4 258.1 249.2 'The areas listed include not only the central city but the entire portion of the Standard Metropolitan Statistical Area, as defined for the 1970 Census of Population, except that the Standard Consolidated Area is used for New York and Chicago. 104 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 262.6 253.6 255.7 252.6 254.9 251.9 251.0 2 Average of 85 cities. 254.6 251.8 259.4 255.7 262.3 259.4 26. Producer Price Indexes, by stage of processing [1967 = 100] A nnual C o m m o d ity g ro u p in g 1981 1980 a v e ra g e 1980 F eb Mar. A pr. M ay Finished goods.................................................................... 246.8 237.7 240.0 242.1 Finished consumer goods.............................................. Finished consumer foods .......................................... Crude .................................................................. Processed ............................................................ Nondurable goods less foods .................................... Durable goods.......................................................... Consumer nondurable goods less food and energy . . . . Capital equipment ........................................................ 248.8 239.4 237.1 237.7 283.9 205.9 192.1 239.5 239.7 232.1 221.2 231.2 268.6 202.6 205.7 230.5 242.2 233.6 230.6 232.0 275.6 200.8 207.4 232.2 243.7 230.1 224.1 228.8 281.5 202.3 209.9 2362 Intermediate materials, supplies, and components.................. 280.1 271.9 274.3 Materials and components for manufacturing.................. Materials for food manufacturing................................ Materials for nondurable manufacturing...................... Materials for durable manufacturing............................ Components for manufacturing .................................. 265.5 263.7 259.5 301.0 231.4 259.6 248.1 248.6 308.4 222.4 Materials and components for construction .................... 268.2 Processed fuels and lubricants...................................... Manufacturing industries............................................ Nonmanufacturing industries...................................... 502.7 425.3 570.7 O c t.’ N o v. D ec. Jan. Feb. 251.4 r 255.4 255.6 256.9 259.8 262.4 254.1 247.4 259.8 244.3 290.9 206.2 216.6 241.8 r 257.0 r 248.0 '237.8 '246.9 '291.7 '214.0 '217.8 '249.2 257.4 248.5 250.4 246.3 293.8 212.3 219.1 248.9 258.6 248.8 254.6 246.3 296.0 213.0 219.9 250.8 261.4 250.6 257.3 247.9 301.1 213.8 223.2 253.9 264.0 250.9 265.0 247.6 307.1 213.9 226.1 256.3 284.3 285.3 '287.7 288.6 291.7 295.5 297.8 265.6 264.4 261.7 297.3 232.4 268.9 277.9 263.4 299.2 235.6 269.5 275.8 263.2 300.5 237.0 '273.3 '295.1 '265.0 '304.7 '238.4 273.5 296.2 266.9 304.1 237,4 275.5 277.0 268.4 304.2 246.4 278.7 277.9 273.4 306.9 249.0 279.7 273.8 275.8 305.5 251.7 266.9 269.6 271.4 271.7 '272.4 273.7 276.4 279.2 280.2 502.0 425.4 569.6 514.2 431.0 586.1 517.4 436.0 588.4 519.5 440.8 588.9 '516.2 '440.6 '583.7 519.8 442.4 588.5 538.7 456.8 610.9 551.4 468.8 624.2 568.3 481.5 644.8 Ju n e July Aug. S e p t. 243.4 244.9 249.3 251.4 245.2 231.9 229.1 230.3 284.2 201.9 211.1 236.7 246.8 233.0 224.5 231.8 285.9 204.1 212.7 237.8 251.7 241.6 240.9 239.7 288.4 207.5 214.7 240.6 254.1 246.5 247.0 244.4 290.0 208.1 215.9 241.9 275.7 277.0 278.8 281.6 259.6 243.8 252.4 302.3 224.7 260.6 241.5 258.1 296.1 227.6 262.5 255.3 260.4 294,1 229.0 264.3 259.7 261.0 297.0 230.3 262.5 265.9 265.5 265.2 471.1 399.2 534.5 489.8 411.2 557.9 496.6 415.2 566.7 498.2 420.9 565.9 F IN IS H E D G O O D S IN T E R M E D IA T E M A T E R IA L S Containers .................................................................. 254.5 245.7 247.4 253.2 254.4 256.2 257.0 257.4 257.9 '260.1 259.6 261.1 264.7 268.0 Supplies...................................................................... Manufacturing industries............................................ Nonmanufacturing industries...................................... Feeds .................................................................. Other supplies ...................................................... 244.5 231.8 251.1 229.2 253.5 2373 222.8 244.8 222.2 247.5 239.4 225.5 246.6 218.8 250.7 239.7 229.0 245.4 205.2 253.0 240.0 230.5 245.0 207.5 251.9 241.2 232.8 245.7 205.1 253.4 245.3 234.2 251.1 225.2 254.7 247.7 235.4 254.1 234.7 255.8 250.3 236.1 257.6 246.8 256.9 '252.3 '237.5 '259.9 '250.3 ' 258.8 254.9 238.4 263.5 259.6 260.8 254.9 239.5 262.8 251.8 262 1 257.3 242.2 265.1 252.2 264.9 257.5 244.6 264.3 238.1 267.6 Crude materials for further processing.................................. 304.2 298.5 293.6 286.2 289.3 288.4 304.3 317.0 319.3 '322.8 323.2 320.8 321.3 335.5 Foodstuffs and feedstuffs.............................................. 259.1 253.1 246.5 235.8 243.0 243.0 263.4 276.8 276.6 '279.1 277.3 271.6 270.6 267.1 Nonfood materials........................................................ 399.9 394.7 393.8 393.4 387.5 384.6 390.8 401.9 409.8 '415.4 420.3 425.2 428.7 481.7 Nonfood materials except fuel.................................... Manufacturing industries ........................................ Construction.......................................................... 344.5 355.8 2372 346.0 358.3 228.7 344.9 356.9 229.9 342.0 353.5 232.4 333.3 343.8 232,8 328.9 338.9 234.1 333.9 343.9 239.1 344.8 355.4 243.7 351.4 362.6 244.8 '355.6 '367.1 245.3 358.4 370.0 247.5 363.1 375.1 247.8 365.8 377.5 254.3 428.1 445.7 257.9 Crude fu e l................................................................ Manufacturing industries ........................................ Nonmanufacturing industries .................................. 614.9 690.2 566.9 579.8 645.0 539.5 579.8 644.3 540,0 591.4 659.0 549.3 600.0 670.3 555.9 604.0 675.7 558.8 615.1 690.5 567.1 626.3 705.4 575.5 639.1 722.0 585.4 '650.9 '738.1 '593.8 665.1 755.9 605.4 670.3 763.0 609.1 677.6 772.2 614.9 679.0 773.1 616.8 Finished goods excluding foods............................................ Finished consumer goods excluding foods...................... Finished consumer goods less energy............................ 247.7 248.5 216.9 238.0 238.1 213.4 240.6 241.0 213.9 244.5 244.9 214.0 245.6 246.2 214.9 247.3 248.1 216.5 250.2 251.0 221.2 251.4 252.2 223.5 251.1 251.8 223.5 '256.2 '255.8 '226.6 256.3 256.1 226.6 258.0 257.6 227.2 261.2 260.9 229.3 264.4 264,3 230.5 Intermediate materials less foods and feeds.......................... Intermediate materials less energy ................................ 281.3 265.8 273.4 259.3 276.3 260.3 278.3 261.1 278.8 262.3 280.6 263.9 282.9 265.9 285.0 268.7 285.8 269.5 r 287.3 '272.5 288.1 273.3 292.5 275.1 296.6 278.1 299.5 279.0 Intermediate foods and feeds .............................................. 252.2 239.3 235.3 229.5 239.7 242.0 251.4 263.7 265.9 '280.3 2839 268.3 269.0 261.9 Crude materials less agricultural products ............................ Crude materials less energy.......................................... 480.3 256.7 411.4 257.7 411.1 251.5 409.8 241.3 402.7 243.7 401.2 241.6 406.9 258.9 418.5 271.4 425.1 272.8 '433.6 '275.4 438.3 274.7 442.1 270.4 447.5 268.8 509.0 265.4 C R U D E M A T E R IA L S S P E C IA L G R O U P IN G S ’ Data for October 1980 have been revised to reflect the availability of late reports and corrections by respondents. All data are subject to revision 4 months after original publication. 2 Not available. r=revised. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NOTE: Figures in this table may differ from those previously reported because stage-of-processing indexes from January 1976 through December 1980 have been revised to reflect 1972 input-output relationships. 105 MONTHLY LABOR REVIEW April 1981 • Current Labor Statistics: Producer Prices 27. Producer Price Indexes, by commodity groupings [1967=100 unless otherwise specified] A n n u al Code C o m m o d ity g ro u p a n d s u b g ro u p All c o m m o d itie s All c o m m o d itie s (1 9 5 7 -5 9 = 100) Farm p ro d u c ts an d p ro c e s s e d fo o d s a n d fe e d s In d u strial c o m m o d itie s 1980 1981 a v e ra g e 1980 Feb . M ar. A pr. M ay June July Aug. S ep t. O c t .1 N o v. D ec. Jan. Feb. 268.6 285.0 260.2 275.6 261.9 277.4 262.8 278.8 264.2 280.3 265.6 281.8 270.4 286.9 273.8 290.5 274.6 291.4 '277.8 r 294.7 278.4 295.4 280.3 297.4 283.5 300.8 286.9 304.4 244,6 274.5 237.0 265.9 234.9 268.6 229.3 271.3 233.8 271.9 234.3 273.5 246.6 276.2 255.1 278.2 256.5 278.8 r 259.4 r 282.0 260.1 282.7 2565 286.1 257.3 289.9 254.9 294.8 FA R M P R O D U C T S A N D P R O C E S S E D F O O D S A N D F EED S 01 01-1 01-2 01-3 01-4 01-5 01-6 01-7 01-8 01-9 Farm products ............................................................................ Fresh and dried fruits and vegetables ........................................ Grains...................................................................................... Livestock ................................................................................ Live poultry.............................................................................. Plant and animal fibers.............................................................. Fluid milk ................................................................................ Eggs........................................................................................ Hay, hayseeds, and oilseeds .................................................... Other farm products ................................................................ 249.3 238.5 239.0 252.7 202.1 271.1 271.2 171.0 247.1 298.1 242.3 2206 223.3 257.2 184.6 269.5 263.8 150.4 224.7 304.7 239.3 218.5 217.9 251.8 180.1 254.9 263.1 184.2 215.9 311.5 228,9 223.2 210,8 230.5 171.9 266.9 265.4 153.3 205.1 304.8 233.5 244.0 219.0 233.3 171.3 272.7 265.4 140.5 206.9 311.0 233.4 233.5 215.3 240.0 166.6 247.0 265.5 146.8 207.4 309.4 254.3 252.0 244.8 260.5 227.2 267.0 265.8 159.3 251.4 292.4 263.8 254.0 256.5 275.7 224.5 280.8 271.6 176.9 261.5 282.7 267.0 266.2 260.6 266.8 241.0 295.2 275.5 188,4 280.7 292.0 r 263.6 r 240.9 269.2 263.0 2229 278.5 280.9 175.2 284.4 r 285.8 264.9 246.4 270.9 254.8 221.0 287.2 284.7 194.0 298.3 296.6 265.3 244,7 265.2 251.4 218.9 294.1 290.5 217.5 310.2 296.0 264.4 257.7 277.7 244.3 213.1 284.1 288.4 185.7 311.8 296.1 262.3 270.4 267.5 244.6 220.8 268.4 289.5 184.8 295.0 295.1 02 02-1 02-2 02-3 024 02-5 02-6 02-7 02-8 02-9 Processed foods and feeds.......................................................... Cereal and bakery products...................................................... Meats, poultry, and fish ............................................................ Dairy products.......................................................................... Processed fruits and vegetables................................................ Sugar and confectionery .......................................................... Beverages and beverage materials............................................ Fats and o ils ............................................................................ Miscellaneous processed foods ................................................ Manufactured animal feeds ...................................................... 241.0 235.9 243.0 230.7 228.9 321.2 232.4 226.8 227.2 226.9 233.1 229.9 239.6 220.8 223.3 287.5 224.8 226.4 223.5 219.8 231.6 231.8 239.2 223.0 223.7 264.1 225.9 222.6 224,7 216.6 2286 2324 226.0 227.5 224.6 275.0 227.9 214.5 225.1 205.0 233.1 234.7 224.5 228.5 225.4 327.8 231.2 212.0 223.7 207.2 233.9 233.2 226.6 229.5 227.2 325.4 234.3 212.8 223.4 205.0 241.5 234.7 248.5 230.1 229.8 313.5 234.6 226.9 2235 223.9 249.4 235.8 259.9 232.6 230.7 347.1 237.1 240.2 224.0 232.4 249.8 238.3 257.8 233.7 231.3 341.4 236.1 238.3 226.8 243.4 '256.1 '241.5 '256.0 '238.0 '233.8 '404.7 '239.5 '231.0 230.6 '246.9 256.5 245.4 250.8 240.6 235.2 403.4 238.1 237.9 235.0 254.9 250.8 248.5 248.0 242.7 237.1 334.6 238.1 234.3 240.5 247.3 252.4 250.8 248.8 245.2 237.4 338.6 240.4 230.4 244.2 247.9 250.0 251.7 243.9 245.5 244,1 324.7 242.2 228.3 248.0 235.3 03 03-1 03-2 03-3 03-4 03-81 03-82 Textile products and apparel ........................................................ Synthetic fibers (12/75 = 100).................................................. Processed yarns and threads (12/75 = 100) ............................ Gray fabrics (12/75 = 100)...................................................... Finished fabrics (12/75 = 100) ................................................ Apparel.................................................................................... Textile housefurnishings............................................................ 183.4 134.8 122.2 137.7 115.7 172.2 208.3 176.5 127.2 118.0 132.3 111.1 166.8 199.7 179.3 129.1 119.3 136.8 113.2 168.0 201.3 181.2 130.4 122.1 137.0 114.5 170.0 201.6 182.0 133.2 124.2 136.5 115.3 170.2 202.6 183.0 134.5 122.8 134.8 115.8 172.7 202.7 184.7 136.0 122.4 135.7 116.6 174.4 210.7 185.6 137.5 123.2 137.5 116.8 175.1 211.0 186.6 139.5 124.3 141.0 117.0 175.0 212.9 '188.1 '140.2 '125.1 '143.5 '118.3 '176.2 '213.8 189.3 141.4 124.9 144.3 119.0 176.0 218.0 190.2 141.5 127.6 143.3 120.0 177.0 218.5 192.4 147.3 129.2 142.8 121.5 178.6 223.9 193.1 147.8 129,6 143.1 122.2 179.3 225.4 04 04-1 04-2 04-3 04-4 Hides, skins, leather, and related products .................................... Hides and skins........................................................................ Leather.................................................................................... Footwear ................................................................................ Other leather and related products............................................ 248.6 370.9 311.6 233.2 218.1 250.9 404.8 340.3 228.0 214.8 246.8 348.7 311.0 231.8 217.8 243.5 328.6 297.6 231.9 216.2 240.7 289.7 290.4 231.9 217.4 240.9 315.7 284.4 231.9 215.9 245.1 356.6 292.2 232.7 217.5 251.3 398.4 314.2 233.7 218.7 247.8 356.1 298.1 235.5 218.8 '251.2 381.5 '301.9 '236.6 '221.8 255.5 409.1 317.3 237.7 2226 256.6 392.8 332.4 237.1 223.5 258.5 377.8 332.6 238.6 230.7 257.4 367.3 310.0 240.8 235.8 05 05-1 05-2 05-3 05-4 05-61 05-7 Fuels and related products and power .......................................... C oal........................................................................................ Coke ...................................................................................... Gas fuels1 .............................................................................. Electric power.......................................................................... Crude petroleum2 .................................................................... Petroleum products, refined3 .................................................... 573.4 467.5 430.6 160.4 321.6 551.7 674.4 532.7 459.6 430.6 716.6 2993 515.1 620.4 553.5 461.7 430.6 716.6 305.5 522.8 659.0 566.6 465.2 430.6 730.1 310.1 533.9 678.0 572.1 466.5 430.6 745.1 316.5 540.1 680.9 576.5 466.6 430.6 749.2 326.0 549.0 681.7 585.5 467.5 430.6 762.1 331.1 551.4 693.9 590,6 468.7 430.6 772.6 333.6 566,8 697.6 593.5 471.3 430.6 786.2 338.3 571.3 696.4 '592.9 '470.7 430.6 '802.2 '337.4 579.6 '690.4 597.6 475.7 430.6 826.5 332.0 580.7 696.8 611.7 475.7 430.6 841.8 337.9 596.0 716.3 625.9 477.5 430.6 857.9 341.7 615.2 736.0 663.8 480.8 430.6 858,8 345.4 842.9 767,8 06 06-1 06-21 06-22 06-3 06-4 06-5 06-6 06-7 Chemicals and allied products...................................................... Industrial chemicals4 ................................................................ Prepared paint.......................................................................... Paint materials ........................................................................ Drugs and pharmaceuticals ...................................................... Fats and oils, inedible .............................................................. Agricultural chemicals and chemical products ............................ Plastic resins and materials ...................................................... Other chemicals and allied products .......................................... 260.2 323.8 235.4 273.8 174.4 297.9 256.9 279.4 224.6 248.7 307.9 223.3 263.4 167.6 302.2 248.0 272.1 211.3 2528 313.3 228.7 267.5 168.9 299.9 256.1 274.5 215.0 259.8 322.1 231.5 272.1 172.6 298.2 258.5 287.6 223.1 262.5 328.5 238.8 273.9 172.8 294.7 258.5 288.4 224.8 262.8 329.5 238.8 275.0 174.4 255.8 257.6 287.6 226.9 263.3 328.7 238.8 277.2 175.7 260.0 258.7 285.7 228.5 264.4 330.0 238.8 278.4 176.1 307.6 260.0 281.5 229.0 263.4 327.5 239.3 278.9 176.8 304.5 260.6 276.5 229.1 '264.8 '330.0 '239.3 '279.6 '178.4 302.0 '260.6 '276.1 '230,9 266.9 333.4 241.7 279.5 181.1 3082 260.4 277.1 2326 267.9 334.6 241,7 280.9 181.8 316.0 262.8 274.4 2342 273.6 342.8 243.3 283.1 184.7 310.6 265.8 275.2 244.1 277.2 349.4 246.9 286.4 187.4 289.7 271.3 276.1 246.7 07 07-1 07-11 07-12 07-13 07-2 Rubber and plastic products ........................................................ Rubber and rubber products...................................................... Crude rubber .......................................................................... Tires and tubes........................................................................ Miscellaneous rubber products.................................................. Plastic products (6/78 = 100) .................................................. 217.3 237.7 263.9 236.6 227.6 120.9 210.7 231.5 263.9 231.6 217.8 116.7 212.7 231.5 255.8 231.6 220.6 119.0 214.1 233.4 264.7 231.8 222.1 119.7 215.0 217.3 234.7 •236.8 263.9 264.1 233.2 235.6 224.0 226.4 119.9 121.4 218.8 239.0 263.4 238.0 229.3 122.0 220.5 240.2 264.3 238.0 232.0 123.2 222.0 242.6 267.3 242.1 232.1 123.7 '222.8 '244.6 '271.7 '245,2 '232.0 '123.6 223.0 245.8 270.0 244.7 236.1 123.1 223.5 245.9 267.5 244.7 237.1 123.6 224.9 246.9 278.0 240.5 241.1 124.7 226.5 249.2 280.8 243.1 243.0 125.3 08 08-1 08-2 08-3 08-4 Lumber and wood products.......................................................... Lumber.................................................................................... Millwork .................................................................................. Plywood .................................................................................. Other wood products................................................................ 2888 325.6 260.5 246.6 239.1 294.7 341.4 258.0 243.4 243.4 294.9 340.6 262.2 240.0 243,1 275.6 310.1 257.5 219.8 241.7 272.1 301.4 251.8 230.6 240.7 289.2 327.2 255.9 252.8 2369 296.1 333.7 260.3 266.0 236.2 292.2 328,0 264.5 252.6 236.8 '289.0 '320.6 '264.5 '252.9 236.7 293.4 325.0 270.0 256.6 236.6 299.4 333.0 273.3 263.5 236.2 296.6 331.6 273.6 251.1 238.5 294.5 327.8 273.8 248.6 238.1 IN D U S T R IA L C O M M O D IT IE S See footnotes at end of table. 106 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 279.8 313.0 253.0 241.7 238.7 27. Continued — Producer Price Indexes, by commodity groupings [1957=100 unless otherwise specified] 1981 1980 A n n u al Code C o m m o d ity g ro u p a n d s u b g ro u p IN D U S T R IA L C O M M O D IT IE S 1980 Feb . M ar. A pr. M ay June July Aug. S e p t. O c t.1 N o v. D ec. Jan. Feb. C o n tin u e d 09 09-1 09-11 09-12 09-13 09-14 09-15 09-2 Pulp, paper, and allied products.................................................... Pulp, paper, and products, excluding building paper and board . . . Woodpulp................................................................................ Wastepaper ............................................................................ Paper ...................................................................................... Paperboard.............................................................................. Converted paper and paperboard products................................ Building paper and board.......................................................... 249.3 250.7 381.1 208.5 256.9 235.0 238.6 206.0 239.2 240.8 356.4 223.4 247.2 223.7 229.5 191.7 242.6 244.1 356.8 224.9 250.3 227.4 233.0 198.7 247.8 249.4 385.6 242.5 253.5 232.1 236.7 201.3 249.2 250.6 385.6 226.1 256.1 235.5 237.6 206.8 251.1 252.4 387.7 206.6 257.9 238.9 239.8 208.9 251.7 252.9 388.3 194.0 258.2 237.1 241.2 211.8 252.4 253.8 388.3 193.8 258.6 238.4 242.3 210.3 252.8 254.1 388.2 192.5 258.7 239.5 242.7 210.2 '254.3 '255.6 '389.6 '193.5 '262.1 '239.9 '243.7 '212.7 255.5 256.7 392.6 191.7 264.4 243.2 243.8 215.6 257.4 258.6 392.6 190.8 269.8 241.1 245.2 219.1 262.0 261.0 392.6 191.5 271.0 251.0 247.0 219.1 266.2 264.6 392.6 186.1 273.1 253.2 252.0 225.2 10 10-1 10-13 10-2 10-3 10-1 10-5 10-6 10-7 10-8 Metals and metal products .......................................................... Iron and steel .......................................................................... Steel mill products.................................................................... Nonferrous metals.................................................................... Metal containers ...................................................................... Hardware................................................................................ Plumbing fixtures and brass fittings............................................ Heating equipment.................................................................... Fabricated structural metal products.......................................... Miscellaneous metal products.................................................... 286.2 305.1 302.7 304.2 298.6 240.1 246.6 206.2 270.4 250.2 288.9 300.3 294.2 337.7 284.4 230.4 236.7 202.6 259.7 241.6 286.8 301.8 295.5 321.4 288.5 231.5 242.4 202.6 265.1 244.2 284.4 307.2 304.1 298.3 304.1 237.3 243.8 204.2 269.1 246.1 281.8 304.8 305.5 289.7 302.7 238.4 247.5 204.0 269.9 246.7 281.9 303.4 305.8 288.8 302.7 240.5 248.6 205.0 270.1 250.4 282.5 300.6 301.0 292.6 303.0 242.6 249.7 296.2 272.2 251.1 285.1 302.6 301.0 298.4 303.2 243.3 250.4 208.0 273.0 253.2 287.3 304.5 301.0 302.2 303.2 245.9 250.6 208.8 274.1 255.0 '291.9 '310.5 307.5 '309.4 304.4 '246.6 250.6 '210.6 '276.9 '256.3 290.7 312.5 309.5 301.0 303.3 247.9 251.8 211.2 277.6 257.7 290.7 316.0 313.4 294.4 303.3 249.6 254.4 212.6 279.2 258.4 293.6 322.8 322.7 290.6 311.4 252.5 255.5 215.4 283.0 261.3 293.7 323.0 322.9 286.2 313.8 256.0 259.0 216.1 285.6 264.0 11 11-1 11-2 11-3 11-4 11-6 11-7 11-9 Machinery and equipment ............................................................ Agricultural machinery and equipment........................................ Construction machinery and equipment...................................... Metalworking machinery and equipment .................................... General purpose machinery and equipment................................ Special industry machinery and equipment ................................ Electrical machinery and equipment .......................................... Miscellaneous machinery.......................................................... 239.6 258.1 289.2 274.3 264.3 275.9 201.7 229.8 230.2 249.9 278.3 261.8 253.3 263.2 194.3 221.1 232.5 252.0 279.5 264.1 256.7 265.5 196.5 223.2 236.4 254.4 284.2 270.2 261.1 271.9 198.9 227.2 237.6 256.4 285.9 272.9 262.8 273.0 199.9 227.3 239.2 257.1 287.6 275.4 264.8 274.3 201.6 228.2 241.5 258.6 291.5 278.0 266.1 276.7 203.7 231.1 242.6 259.9 293.4 278.8 267.0 277.1 205.0 232.1 244.7 263.9 295.7 280.2 270.0 283.0 206.0 233.6 '246.8 '265.4 '299.1 '282.5 '272.5 '286.0 207.0 '236.5 247.7 266.1 299.7 283.7 273.2 287.9 207.4 238.1 249.5 269.5 301.1 285.6 275.2 291.2 208.9 239.2 252.7 273.5 304.9 289.3 278.2 295.3 211.9 241.8 254.8 277.2 308.4 291.2 279.9 299.3 213.6 243.7 12 12-1 12-2 12-3 12-4 12-5 12-6 Furniture and household durables ................................................ Household furniture .................................................................. Commercial furniture................................................................ Floor coverings ........................................................................ Household appliances .............................................................. Home electronic equipment ...................................................... Other household durable goods ................................................ 187.3 204.2 235.9 163.0 173.8 91.0 277.7 185.6 198.5 231.4 158.5 168.9 91.2 295.3 185.7 198.9 232.8 160.8 169.9 91.3 288.3 184.4 200.3 233.6 162.2 171.1 91.4 267.3 185.4 203.0 233.9 161.9 173.2 92.0 265.6 186.5 204.0 235.5 162.1 175.5 91.8 266.5 188.0 206.5 237.2 163.2 175.8 91.7 271.5 188.9 208.0 237.3 163.8 176.3 91.3 275.9 189.5 208.5 237.8 163.9 177.2 91.6 276.2 '190.9 '209.8 '241.4 '164.4 '177.5 '91.5 '281.8 190.4 209.1 241.5 165.7 177.2 91.1 278.4 192.3 210.4 242.4 170.2 178.2 91.0 285.1 193.2 211.3 246.1 172.3 181.0 91.0 278.3 194.6 212.1 251.2 172.4 182,3 91.7 280.2 13 13-11 13-2 13-3 13-4 13-5 13-6 13-7 13-8 13-9 Nonmetallic mineral products........................................................ Flat glass ................................................................................ Concrete ingredients ................................................................ Concrete products.................................................................... Structural clay products excluding refractories............................ Refractories ............................................................................ Asphalt roofing ........................................................................ Gypsum products .................................................................... Glass containers ...................................................................... Other nonmetallic minerals........................................................ 282.8 196.5 273.4 273.9 231.5 264.9 396.7 256.3 292.7 394.0 274.0 191.0 266.6 266.7 231.0 251.1 372.5 262.2 274.3 381.7 276.5 191.4 267.5 269.1 231.4 253.9 388.8 267.6 274.3 387.0 283.7 195.3 271.7 272.9 235.0 261.7 408.9 264.0 294.3 399.6 284.0 195.3 272.4 275.2 230.0 264.4 401.1 256.5 294.3 400.7 283.4 193.6 273.2 275.8 230.1 265.8 400.9 257.1 294.3 394.8 284.8 194.3 275.9 275.9 230.1 268.7 413.8 253.1 294.3 396.9 286.0 199.5 278.6 276.0 229.7 270.6 411.2 251 8 294.3 397.1 286.8 199.7 278.9 277.3 230.1 270.6 407.9 251.8 294.6 400.7 '288.6 200.7 '279.0 '277.5 '233.3 '273.2 '408.5 249.5 '306.2 '402.7 288.4 203.1 278.5 277.6 233.6 274.1 396.9 253.3 306.5 402.0 290.7 203.0 278.7 277.8 234.1 274.1 394.5 252.7 311.5 415.7 296.3 203.9 287.5 285.6 240.0 283.5 404.1 259.6 311.5 417.9 297.7 204.3 289.6 286.6 240.4 294.4 389.3 257.3 311.5 424.7 14 14-1 14-4 Transportation equipment (12/68 - 100)...................................... Motor vehicles and equipment .................................................. Railroad equipment .................................................................. 206.6 208.7 313.0 198.2 200.1 299.3 198.8 200.7 302.1 203.2 205.4 309.9 202.5 204.5 310.5 203.1 205.2 312.2 206.2 208.6 316.4 2088 211.7 318.0 204.4 205.6 320.0 '217.4 '218.2 323.3 216.0 218.0 323.6 224.1 225.9 323.6 226.4 228.5 3278 228.5 230.2 334.4 15 15-1 15-2 15-3 15-4 15-51 15-9 Miscellaneous products................................................................ Toys, sporting goods, small arms, ammunition............................ Tobacco products .................................................................... Notions.................................................................................... Photographic equipment and supplies ........................................ Mobile homes (12/74 = 100).................................................... Other miscellaneous products .................................................. 258.7 198.4 245.5 217.2 203.0 149.9 363.3 262.9 193.5 237.2 203.2 218.6 146.8 378.3 256.1 194.5 237.3 207.2 219.1 147.1 351.3 252.8 195.4 238.1 216.8 212.3 149.4 340.9 251.7 196.0 247.7 217.0 199.6 150.4 340.2 258.0 197.5 248.1 217.0 201.7 150.6 360.2 261.7 200.2 248.2 221.7 201.6 151.2 370.9 260.1 201.3 248.2 223.8 200.9 151.4 364.6 265.1 202.3 248.2 223.9 200.9 151.7 381.9 266.0 '202.7 '249.4 224.0 '200.8 '153.2 '383.4 263.8 202.8 253.9 224.1 207.1 152.0 368.2 265.4 205.6 254.2 225.0 207.0 152.4 371.5 263.0 207.8 254.3 227.0 207.3 152.3 359.5 263.2 209.5 255.3 247.3 209.6 152.5 353.2 ’ Data for October 1980 have been revised to reflect the availability of late reports and corrections by respondents. All data are subject to revision 4 months after original publication. 2 Prices for natural gas are lagged 1 month. 3 Includes only domestic production. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4Most prices for refined petroleum products are lagged 1 month, 5Some prices for industrial chemicals are lagged 1 month. r=revised. 107 MONTHLY LABOR REVIEW April 1981 • Current Labor Statistics: Producer Prices 28. Producer Price Indexes, for special commodity groupings [1967=100 unless otherwise specified] A n n u al C o m m o d it y g r o u p in g A ll c o m m o d it ie s 1980 le s s f a r m p r o d u c t s A ll f o o d s P ro c e s s e d fo o d s Industrial commodities less fu e ls ...................................... Selected textile mill products (Dec. 1975 = 1 0 0 ) ........... H osiery.............................................................................. Underwear and nightwear................................................. Chemicals and allied products, Including synthetic rubber and manmade fibers and yarns ................................... Pharmaceutical preparations............................................ Lumber and wood products, excluding mlllwork and other wood products..................................................... Special metals and metal products ................................. Fabricated metal products ............................................... Copper and copper products .......................................... Machinery and motive products........................................ Machinery and equipment, except electrical.................... Agricultural machinery, including tra c to rs ........................ Metalworking machinery................................................... Numerically controlled machine tools (Dec. 1971 = 100) Total tractors..................................................................... Agricultural machinery and equipment less parts ........... Farm and garden tractors less parts ............................... Agricultural machinery excluding tractors less parts . . . . Industrial valves.............................................................. Industrial fittings................................................................ Abrasive grinding wheels ................................................. Construction materials ..................................................... 1980 Feb. M ar. A pr. M ay 269.4 244.5 246.6 243.4 124.4 123.3 185.5 260.9 235.8 238.6 238.0 119.3 119.4 177.4 262.9 234.8 236.9 238.9 121.3 120.3 182.1 264.8 231.9 234.1 240.5 122.2 121.1 182.4 250.7 167.1 239.2 160.3 243.2 161.7 303.8 258.3 258.2 222.1 230.1 313.9 256.0 248.4 260.7 220.9 261.8 266.2 299.5 225.6 286.5 260.2 268.0 265.0 287.1 291.8 251.1 257.2 284.4 215.4 275.1 251.5 257.5 257.3 273.5 280.4 244.0 262.6 266.3 June July A ug. S e p t. O c t .1 N o v. D ec. Jan. Feb. 265.9 237.3 239.0 240.6 122.9 121.5 182.8 267.5 237.7 239.9 242.0 123.7 122.2 187.1 270.9 245.9 247.3 243.9 125.5 123.5 188.3 273,8 254.1 255.7 245.6 126.0 125.9 189.3 274.3 254.3 254.9 246.0 126.6 126.4 189.5 '278.1 '258.8 '261.7 '249.6 '127.5 '126.2 '189.7 278.7 259.3 261.4 249.8 128.5 126.7 190.5 280.7 253.9 255.1 252.2 129.6 126.7 190 9 284.2 255.1 256.4 255.0 131.8 129.2 199.5 288.0 253.9 254.2 256.6 132.7 130.1 201.2 250.0 165.6 252.8 165.9 253.8 167.6 254.2 1681 254.7 168.4 254.0 168.8 '255.4 170.8 257.3 173.7 258.2 174.6 264.2 177.1 268.0 179.7 312.2 255.1 252.0 240.9 222.5 284.7 255.8 255.9 222.0 226.7 282.0 254.0 256.8 212.2 227.1 293.5 254.4 258.6 208.5 228.3 306.9 256.2 259.9 214.5 231.0 315.5 259.0 261.2 220.4 232.9 307.4 257.8 262.6 214.1 232.1 '302.3 '265.7 '264.3 '216.5 '239.2 306.5 265.0 265.2 216.9 239.0 314.2 268.4 266.3 210.9 243.8 309.2 271.3 270.0 207.8 246.7 305.7 272.2 272.6 205.9 248.8 253.5 260.0 287.5 216.7 276.6 254.1 261.5 258.9 280.0 282.8 244.0 265.1 258.2 261.9 293.6 223.8 280.8 256.2 263.7 260.7 287.8 289.9 261.4 262.3 259.6 263.9 296.8 226.9 282.9 258.0 264,7 263.6 288.4 291.5 261.3 261.8 261.2 264.7 299.7 228.5 284.0 258.7 264.8 265.0 290.1 295.9 261.3 264.2 263.7 266.3 303.3 228.7 288.3 260.8 267.2 265.9 291.1 296.1 261.5 267.0 264.6 268.1 304.5 229.3 291.1 262.2 270.3 266.6 291.3 296.1 261.5 269.6 270.2 272.9 306.5 230.0 295.8 266.5 277.3 269.7 292.4 296.1 261.3 269.3 '273.0 '274.8 '309.6 231.7 '298.3 '268.3 '278.0 '272 5 '294.6 '298.6 263.4 '269.9 271.3 275.4 311.4 232.4 296.8 268.8 276.9 274.5 293.7 298.6 273.0 271.8 273.3 279.1 314.4 230.9 299.4 272.2 280.8 277.9 296.3 298.6 273.8 273.9 276.6 283.3 318.9 235.0 304.8 276.3 283.6 283.3 297.9 2986 <2) 276.7 278.9 285.8 320.0 235.4 310.2 279.0 286.4 285.5 302.7 296.0 ( 2) 277.1 1Data for October 1980 have been revised to reflect the availability of late reports and corrections by respondents. All data are subject to revision 4 months after original publication. 29. 1981 a v e ra g e 2 Not available, Producer Price Indexes, by durability of product [1967=100] A n n u al C o m m o d it y g r o u p in g 1980 1981 a v e ra g e 1980 Feb. M ar. A pr. M ay Total durable g o o d s ....................................................... Total nondurable goods ................................................. 251.2 282.3 247.1 270.2 247.0 273.4 247.7 274.4 Total manufactures ....................................................... Durable..................................................................... Nondurable .............................................................. 261.4 250.5 272.9 253.2 245.7 260.8 255.2 245.6 265.2 Total raw or slightly processed goods .......................... Durable..................................................................... Nondurable .............................................................. 305.4 278.0 306.4 295.9 305.3 294.2 295.4 303.4 293.8 June July A ug. S e p t. O c t.1 Nov. D ec. Jan. Feb. 247.1 277.6 248.7 278.8 251.2 285.6 253.1 290.3 253.7 291.2 '258.4 '293.0 257.8 294.8 260.8 295.8 261.9 300.7 263.1 306.0 257.0 246.7 267.9 258.3 246.7 270.7 259.8 248.5 271.7 263.0 251.0 275.9 265.7 252.7 279.5 265.8 253.1 279.5 '269.6 '257.8 ' 282.1 270.1 257.1 283.9 271.9 260.2 284.2 276.4 261.5 292.5 278.7 262.7 295.9 290.4 286.0 289.8 292.7 262.2 294.0 293.8 249.9 296.1 307.7 255.2 310.6 315.7 265.8 318.4 319.9 274.9 322.2 '319.6 282.7 321.3 321.8 285.9 323.3 324.3 284.1 326.2 318,6 275.7 320.7 328.9 275.7 331.7 1Data for October 1980 have been revised to reflect the availability of late reports and corrections by respondents. All data are subject to revision 4 months after original publication. 30. Producer Price Indexes for the output of selected SIC industries [1967=100 unless otherwise specified] 1972 S IC A n n u al In d u s try d e s c rip tio n code 1980 1981 a v e ra g e 1980 Feb . M ar. A pr. M ay Ju n e July A ug. S e p t. O c t.1 N ov. D ec. 152.9 331.2 466.8 640.2 252.0 136.0 147.3 335.4 459.6 598.0 243.2 136.6 152.6 330.0 461.7 600.6 243.9 136.6 152.6 337.5 464.6 612.5 248.6 136.6 152 6 337.5 466.0 619.6 249.3 136.6 152.6 322.9 466.0 631.5 250.0 136.6 155.8 331.2 466.9 638.0 254.8 136.6 155.8 329.1 467.9 656.7 255.8 136.6 155.8 3354 470.3 667.6 258,5 136.6 155.8 338.7 ' 469.7 '681.8 '261.8 137.2 155.8 343.7 474.5 690.6 263.5 132.1 155.8 325.0 474.3 705.5 263.4 133.7 155.8 297.9 475.8 722.9 269.0 137.1 168.1 324.5 478.3 885.6 271.7 137.1 244.3 219.9 191.9 258.5 240.1 207.8 178.2 242.8 238.9 209.4 173.5 243.4 225.6 197.9 164.5 252.7 227.2 193.3 164.7 253.7 230.0 190.9 164.2 255.7 249.1 213.7 214.2 256.3 2653 233.0 212.1 268.5 257.1 240.0 226.0 265.8 '258.0 '247.0 211.3 273.2 251.3 249.0 205.9 273.3 248.9 246.8 201.8 274.8 2458 235.3 201.9 273.7 237.3 232.7 208.3 273.5 Jan. Feb. M IN IN G 1011 1092 1211 1311 1442 1455 Iron ores (12/75 = 100)................................................ Mercury ores (12/75 = 100).......................................... Bituminous coal and lignite ............................................ Crude petroleum and natural gas.................................... Construction sand and gravel ........................................ Kaolin and ball clay (6/76 = 100) .................................. 2011 2013 2016 2021 Meatpacking plants........................................................ Sausages and other prepared meats .............................. Poultry dressing plants .................................................. Creamery butter............................................................ M A N U F A C T U R IN G See footnote at end of table. 108 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 30. Continued — Producer Price Indexes for the output of selected SIC industries [1967 = 100 unless otherwise specified] 1972 SIC A n n u al In d u s try d e s c rip tio n code M A N U F A C T U R IN G 1980 1981 a v e ra g e 1980 Feb. M ar. A p r. M ay June Ju ly Aug. S e p t. O c t.1 Nov. D ec. Jan. Feb . C o n tin u e d 2022 2024 2033 2034 2041 2044 2048 2061 2063 2067 Cheese natural and processed (12/72 = 100) .............. Ice cream and frozen desserts (12/72 = 100) .............. Canned fruits and vegetables........................................ Dehydrated food products (12/73 = 100)...................... Flour mills (12/71 =100) ............................................ Rice milling.................................................................. Prepared foods, n.e.c. (12/75 = 100)............................ Raw cane sugar .......................................................... Beet sugar .................................................................. Chewing gum .............................................................. 205.0 193.3 221.7 160.2 189.1 243.4 124.3 414.1 349.6 290.7 192.9 181.5 213.6 159.0 183.6 233.0 122.6 374.9 293.2 262.3 195.7 185.0 214.7 156.4 181.6 258.0 121.5 276.0 305.7 281.9 201.9 191.3 216.3 157.5 175.0 260.4 116.5 320.2 296.6 282.0 201.9 192.1 217.3 156.4 182.3 254.5 116.9 456.1 339.9 282.0 202.5 195.2 219.9 156.3 180.8 236.0 116.2 402.4 348.0 282.0 203.4 195.2 222.9 157.7 188.6 225.3 122.2 381.8 342.3 282.4 206.8 1955 223.4 159.6 193.1 219.9 126.6 484.0 365.5 282.4 208.0 1961 224.3 159.9 196.1 225.9 129.6 458.9 384.5 302.4 r 213.7 199.5 r 227.6 162.6 201.5 237.2 ' 129.2 588.2 '460.1 322.4 216.8 199 8 231.8 168.7 205.1 265.8 133.6 563.8 476.2 322.9 217,9 207.5 232.8 170.5 199.5 287.2 134.2 402.9 389.6 322.9 217,8 210.1 233.7 172.9 2034 289.6 132.9 418.0 375.6 323.0 217.4 210.6 238.3 170.1 198.0 289.6 129.7 367.1 403.1 323.0 2074 2075 2077 2083 2085 2091 2092 2095 2098 2111 Cottonseed oil m ills...................................................... Soybean oil m ills.......................................................... Animal and marine fats and oils .................................... Malt ............................................................................ Distilled liquor, except brandy (12/75 = 100) ................ Canned and cured seafoods (12/73 = 100) .................. Fresh or frozen packaged fish ...................................... Roasted coffee (12/72 = 100)...................................... Macaroni and spaghetti ................................................ Cigarettes.................................................................... 192.9 244.2 290.1 249.9 123.0 174.0 367.1 269.3 233.8 254.6 184,4 230.4 292.6 244.1 118.7 164.0 385.5 273.9 227.7 245.9 170.4 222.3 297.4 244.1 118.7 165.7 391.6 274.0 227.7 246.0 154.7 211.9 274.0 244.1 118.7 170.2 370.5 273.9 230.5 246.3 150.4 212.9 262.9 244.1 118,9 173,1 360.0 273.9 230.5 257.3 155.1 208.6 238.9 244.1 120.5 175.3 361.2 283.1 230.5 257.4 191.3 37.4 274.5 244.1 121.0 175.9 363.7 274.5 230.5 257.4 215.1 256.9 297.4 244.1 127.7 177.5 365.2 274.7 230.5 257.4 232.9 275.2 307.0 244.1 127.7 178.6 355.0 263.9 239.3 257.4 218.7 r 279.2 311.0 267.4 127.9 180,0 r 353.8 257.0 243.6 r 257.8 231.7 290.5 317.2 267.4 128.5 183.1 353.8 252.5 243,6 263.4 228.0 270.2 310.8 267.4 129.2 183.4 354.4 248.5 243,6 263.5 221.2 272.0 310.8 286.1 129.2 187.0 375.4 238.2 243.6 263.5 193.7 253.0 287.2 286.1 133.9 186.8 367.2 238.3 243.6 263.9 2121 2131 2211 2221 2251 2254 2257 2261 2262 Cigars ........................................................................ Chewing and smoking tobacco...................................... Weaving mills, cotton (12/72 = 100) ............................ Weaving mills, synthetic (12/77 = 100) ........................ Women’s hosiery, except socks (12/75 = 100).............. Knit underwear mills .................................................... Circular knit fabric mills (6/76 = 100)............................ Finishing plants, cotton (6/76 = 100) ............................ Finishing plants, synthetics, silk (6/76 = 100) ................ 157.7 278.2 215.6 124.5 106.4 190.0 104.5 135.1 113.6 154.2 265.1 206.9 118.3 103.3 184.1 100.4 129.6 109.4 154.4 267.3 209.5 122.7 104.3 186.5 103.4 131.9 110.4 155.3 279.2 211.3 123.0 105.0 186.8 104.0 132.4 110.7 155.3 278.6 212.9 122.4 105.4 187.1 104.4 134.5 111.8 159.8 278.6 212.9 121.2 105.4 190.4 105.0 134.6 112.1 159.9 279.5 217.7 123.0 105.4 192.6 105.4 137.2 113.8 159.9 279.7 219.0 124.9 108 8 192.9 105.7 137.3 114.1 159.9 279.7 221.9 127.7 108.8 194.1 105.8 136.9 115.3 r 163.7 r 295.0 r 223.4 r 130.7 r 108.7 r 194.2 r 106.7 r 139.1 117.3 161.3 290.2 223.9 132.5 109.0 194.6 106.8 139.3 117.9 162.4 294.0 224.8 132.0 109.0 195.0 107.2 140.1 120.4 163.6 294.2 227.2 131.5 1091 205.5 107.9 142.4 121.6 162.6 310.4 230.2 131.8 109.2 208.6 108.2 144.5 123.0 2272 2281 2282 2284 2298 2311 2321 2322 2323 2327 Tufted carpets and rugs................................................ Yarn mills, except wool (12/71 =100) .......................... Throwing and winding mills (6/76 = 100) ...................... Thread mills (6/76 = 100)............................................ Cordage and twine (12/77 = 100)................................ Men’s and boys’ suits and coats.................................... Men’s and boys’ shirts and nightwear............................ Men’s and boys’ underwear.......................................... Men's and boys’ neckwear (12/75 - 100) .................... Men's and boys’ separate trousers................................ 138.1 203.5 114.8 139.1 123.6 212.5 204.1 208.0 112.6 174.5 134.5 197.8 110.6 129.2 117.2 208.1 196.2 202.0 112.4 174.2 137.0 199.5 112.0 130.0 118.5 208.3 199.3 204.0 112.4 174.3 137.3 203.7 114.8 134.6 123.6 209.7 2040 204.2 112.4 174.9 137.1 204.5 118.1 143.0 123.8 210.9 203.7 204.3 112.4 174.9 137.4 202.8 115.8 142.9 125.0 211.6 205.1 208.5 112.4 175.1 137.7 202.9 115.0 143.0 125.0 214.9 206.5 211.1 112.4 175.3 138.3 204.3 115.8 143.1 125.0 214.9 206.7 211.2 112.4 175.3 138.3 206.2 117.2 143.1 125.0 214.9 207.7 212.8 112.4 175.3 r 138.8 r 207.9 r 118.2 143.8 127.1 r 216.2 ' 208.0 212.8 112.4 r 180.2 140.3 209.9 116.0 143.9 129.2 215.9 207.5 212.8 112.4 175.3 145.3 215.2 118.4 143.9 129.3 216.1 2084 212.8 115.4 180.3 148.1 217.0 121.5 144.1 129.3 218.1 203.1 224.8 115.4 180.4 148.2 218.1 121.6 144.3 129.3 219.7 203.9 229.0 115.4 180.4 2328 2331 2335 2341 2342 2361 2381 2394 2396 2421 Men’s and boys' work clothing ...................................... Women’s and misses’ blouses and waists (6/78 = 100) . Women’s and misses’ dresses (12/77 = 100)................ Women’s and children’s underwear (12/72 = 100) ........ Brassieres and allied garments (12/75 = 100) .............. Children’s dresses and blouses (12/77 = 100).............. Fabric dress and work gloves........................................ Canvas and related products (12/77 = 100).................. Automotive and apparel trimmings (12/77 = 100).......... Sawmills and planing mills (12/71 = 1 0 0 )...................... 240.4 110.0 114.7 154.5 126.6 109.8 268.6 124.0 122.4 227.5 233.6 106.6 113.8 150.0 122.9 105.3 261.7 122.8 114.3 239.5 235.4 106.7 113.8 153.1 124.9 105.5 265.0 123.4 122.3 239.1 241.2 107.6 113.9 153.1 125.4 106.3 267.5 123.4 122.3 215.8 241.8 107.6 113.9 153.2 125.4 105.6 271.1 123.4 122.3 209.4 242.6 107.8 114.0 155.0 126.6 108.0 271.1 123.4 122.3 218.1 244.8 111.4 114.0 155.4 127.8 112.7 271.1 123.4 122.3 228.9 244.1 112.6 115.4 156.9 129.0 112.7 271.1 123.4 122.3 234.2 243.9 112.6 115.4 155.4 129.0 112.2 271.1 123.9 122.3 229.0 '244.3 r 114.0 116 3 156.0 '129.0 '112.7 271.1 '125.1 122.3 '223.2 243.9 112.8 116.3 157.1 129.5 114.8 272.1 125.6 131.0 226.8 244.3 114.0 116.3 158.7 129.5 117.0 272.1 126.6 131.0 233.5 241.6 114.8 116.4 166.1 132.1 117.1 284.9 127.4 131.0 232.4 241.7 114.8 116.7 168.0 133.2 117.7 289.1 127.4 131.0 230.0 2436 2439 2448 2451 2492 2511 2512 2515 2521 2611 Softwood veneer and plywood (12/75 = 100)................ Structural wood members, n.e.c. (12/75 = 100) ............ Wood pallets and skids (12/75 = 100).......................... Mobile homes (12/74 = 100)........................................ Particleboard (12/75 = 100) ........................................ Wood household furniture (12/71 = 100) ...................... Upholstered household furniture (12/71 = 100).............. Mattresses and bedsprings............................................ Wood office furniture.................................................... Pulp mills (12/73 = 100).............................................. 144.6 155.8 160.1 150.0 161.1 183.6 162.6 179.0 235.3 240.8 143.7 158.2 167.0 146.9 150.7 178.2 158.7 170.5 233.8 225.1 139.8 158.3 166.3 147.2 158.9 178.9 158.7 170.5 233.8 225.5 121.9 158.2 164.6 149.5 161.9 180.0 160.9 172.8 233.9 243.8 130.3 152.1 162.8 150.5 167.3 182.2 161.1 176.0 233.9 243.9 140.5 152.1 159.7 150.7 171.7 183.5 162.5 176.0 234.0 243.9 150.4 152.1 157.1 151.3 '168.7 185.1 166.1 180.8 235.5 244.5 160.7 152.2 156.0 151.4 169.4 186.4 166.2 186.4 235.5 244.5 149.6 155.5 154.9 151.8 163.7 187.7 166.2 186.4 235.5 244.4 '149.1 '156.2 154.6 '153.2 '159.8 '188.1 '167.7 '186.5 '239.7 '246.1 152.3 157.0 154.7 152.1 161.6 188.6 165.8 186.4 239.6 249.0 158.2 157.1 154.1 152.4 164.7 189.8 167.6 186.4 240.8 249.1 149.8 157.1 153.8 152,4 162.7 191.2 166.9 186.2 244.0 249.1 147.0 157.0 152.8 152.5 169.1 191.7 167,2 188.2 250.3 249.1 2621 2631 2647 2654 2655 2812 2821 2822 2824 2873 Paper mills, except building (12/74 = 100).................... Paperboard mills (12/74 = 100) .................................. Sanitary paper products................................................ Sanitary food containers .............................................. Fiber cans, drums, and similar products (12/75 = 100) .. Alkalies and chlorine (12/73 = 100).............................. Plastics materials and resins (6/76 = 100).................... Synthetic rubber .......................................................... Organic fiber, noncellulosic............................................ Nitrogenous fertilizers (12/75 = 100) ............................ 145.6 139.1 322.3 216.4 151.0 249.3 143.1 255.5 132.6 124.1 139.8 132.3 303.9 204.8 143.2 226.5 139 7 244.2 124.7 119.8 142.5 134.6 311.7 208.9 143.3 233.7 140.8 244.7 126.9 122.1 145.0 137.9 316.7 212.9 146.6 241.2 146.4 256.8 128.5 123.6 145.8 139.5 319.3 215.5 148.7 246.5 147.3 259.3 131.7 124.5 146.2 141.2 321.2 217.2 150.6 250.0 146.9 259.6 132.8 123.4 146.4 140.3 327.4 218.2 155.2 251.9 146.1 259.8 133.4 122.6 146.7 141.1 331.1 220.3 155.2 257.3 144.4 260.5 134.9 123.7 146.7 141.7 331.1 222.3 155.2 257.2 141.5 260.1 137.1 127.2 '148.2 '142.3 '332.6 '222.3 155.5 '257.9 '141.5 '260.9 '138.0 130.3 149.5 143.7 335.6 223.4 155.5 272.3 142.0 259.3 139.3 130.0 151.0 142.8 339.2 226.5 159.4 267.8 141.1 261.5 139.6 131.8 152.0 148.3 339.2 233.2 157.7 282.5 142.7 274.6 144.8 135.1 152.8 149.4 343.6 236.5 159.7 290.5 143.5 279.5 145.4 137.9 2874 2875 2892 2911 2951 2952 3011 Phosphatic fertilizers .................................................... Fertilizers, mixing only .................................................. Explosives .................................................................. Petroleum refining (6/76 = 100) .................................. Paving mixtures and blocks (12/75 = 100).................... Asphalt felts and coatings (12/75) = 100) .................... Tires and inner tubes (12/73 = 100) ............................ 237.1 246.6 269.7 248.5 171.5 173.3 202.9 233.2 239.8 255.2 228.4 161.5 162.7 198.7 235.0 242.5 260.2 242.3 167.9 169.9 198.8 237.2 245.2 271.4 250.5 172.7 178.2 199.1 236.3 248.5 272.8 253.0 172.7 174.8 200.1 235.7 249.0 273.7 253.3 172.6 175.0 202.2 234.8 249.8 273.8 255.9 174.7 180.9 204.1 240.6 249.3 273.4 256.9 175.1 179.8 204.1 240.8 250.2 273.3 256.4 176.0 178.3 207.4 '239.3 '250.6 '273.5 '254.6 '176.2 '178.6 '209.9 239.2 251.7 272.8 256.1 176.5 173.5 209.5 244.9 251.8 282.7 261.2 181.5 172.5 209.7 247.5 255.9 288.7 268.1 182.1 176.5 206.6 248,4 267.2 295.3 279.1 185.4 170.0 209.0 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 109 MONTHLY LABOR REVIEW April 1981 • Current Labor Statistics: Producer Prices 30. Continued — Producer Price Indexes for the output of selected SIC industries [1967 = 100 unless otherwise specified] 1972 A n n u al In d u s try d e s c rip tio n SIC code 1980 1981 a v e ra g e 1979 Feb. M ar. A pr. M ay June July Aug. S e p t. O c t.1 N o v. D ec. Jan. Feb. 3021 3031 3079 3111 3142 3143 3144 3171 3211 3221 Rubber and plastic footwear (12/71 = 100).................................... Reclaimed rubber (12/73 = 100) .................................................. Miscellaneous plastic products (6/78 = 100) .................................. Leather tanning and finishing (12/77 = 100).................................... House slippers (12/75 = 100)........................................................ Men's footwear, except athletic (12/75 = 100)................................ Women’s footwear, except athletic.................................................. Women’s handbags and purses (12/75 = 100) .............................. Flat glass (12/71 =100) .............................................................. Glass containers............................................................................ 178.0 184.0 121.5 147.1 149.6 159.9 213.5 137.9 161.3 292.6 173.6 180.0 117.0 160.8 145.4 157.9 206.3 131.9 157.6 274.3 173.6 184.9 119.1 146.7 145.4 158.5 213.5 132.1 157.9 274.3 173.7 185.9 120.3 140,8 145.4 158.5 213.8 132.1 160.8 294.2 173.7 186.5 120.5 137.9 145.4 158.5 213.8 140.8 160.8 294.2 173.8 1¿6.5 122.2 134.6 145.4 158.5 213.8 140.9 158.9 294.2 181.8 186.5 122.7 137.7 151.1 158.5 214.2 140.9 159.5 294.2 181.9 185.9 123.9 147.9 151.1 159.5 214.3 140.0 162.6 294.2 182.0 185.9 124.4 140.0 151.1 161.5 215.2 140.9 162.8 294.2 r 182.0 '184.0 r 124.2 ( 2) r 153.5 r 161.6 217.1 140.9 163.8 r 306.1 183.1 182.0 123.8 149.3 159.7 162.4 217.1 140.9 166.4 306.4 183,0 184.7 124.2 156.6 154.9 162.4 217.2 140.9 166.3 311.4 183.2 188.3 125.1 157.0 (2) 164.7 217.9 149.5 167.1 311.4 183.7 192.1 125.6 145.5 (2) 166.4 220.0 149.5 167.5 311.4 3241 3251 3253 3255 3259 3261 3262 3263 3269 3271 Cement, hydraulic.......................................................................... Brick and structural clay tile ............................................................ Ceramic wall and floor tile (12/75 = 100) ...................................... Clay refractories............................................................................ Structural clay products, n.e.c........................................................... Vitreous plumbing fixtures .............................................................. Vitreous china food utensils............................................................ Fine earthenware food utensils........................................................ Pottery products, n.e.c. (12/75 = 100)............................................ Concrete block and brick................................................................ 309.8 277.3 122.5 274.1 202.8 234.8 317.3 295.4 152.6 257.3 305.9 270.4 130.4 259.4 198.1 224.6 308.2 294.3 150.1 250.6 306.3 271.9 130.4 263.7 196.4 226.7 308.2 294.3 150.1 2523 312.6 276.4 130.4 273.9 203.1 227.6 313.4 295.1 151.4 259.3 313.8 278.5 117.6 275.6 204.1 236.1 313.4 293,9 151.5 259.4 313.8 278.5 117.6 275.9 204.4 235.8 318.6 294.7 152.7 259.4 313.3 278.5 117.6 279.2 204.7 237.2 318.3 294.6 152.7 259.5 313.1 277.6 117.6 279.5 205.0 240.4 318,3 294.6 152.7 259.5 312.3 278.5 117.6 279.7 204.8 241.1 318.7 296.4 153.3 260.5 r 311.8 282.6 120.1 '280.2 '204.9 241.5 327.4 ' 297 9 '155.4 '259.4 307.6 283.0 120.1 282.1 205.4 242.6 327.4 297.6 155.4 259.4 307.6 283.8 120.1 282.1 205.6 245.0 327.4 297.6 155.4 259.4 319.2 287.5 127.1 293.1 209.9 244.7 327.4 298.3 155.4 264.1 319.1 287.0 127.1 306.9 213.3 248.9 327.4 298.3 155.4 264.9 3273 3274 3275 3291 3297 3312 3313 3316 3317 3321 Ready-mixed concrete.................................................................... Lime (12/75 = 100) ...................................................................... Gypsum products .......................................................................... Abrasive products (12/71 = 100) .................................................. Nonclay refractories (12/74 = 100)................................................ Blast furnaces and steel mills ........................................................ Electrometallurgical products (12/75 = 100) .................................. Cold finishing of steel shapes.......................................................... Steel pipes and tubes .................................................................... Gray iron foundries (12/68 = 100).................................................. 279.9 157.8 256.7 212.6 161.2 310.4 117.7 283.9 291.0 282.0 272.6 153.5 262.8 203.3 153.3 302.9 117.8 277.1 281.0 276.9 275.5 155.6 268.1 203.9 154.2 304.1 118.0 277.2 283.2 277.2 278.8 157.1 264.6 212.0 157.4 312.0 118.7 285.9 286.8 279.8 281.5 157.3 257.0 211.8 159.7 313.3 118.6 288.1 286.9 280.5 282.5 157.7 257.5 213.5 161.2 313.5 118.7 288,2 290.4 282.5 282.6 159.6 253.5 215.2 162.8 308.6 117.1 282.2 292,4 283.0 282,6 160.2 252.3 215.7 164.9 308.5 117.1 282.3 292.6 283.2 283.6 158.8 252.2 217.1 164.8 308.6 117.2 282.3 292.6 283,3 '282.7 '160.8 250.0 '218.8 '167.8 314.8 117.3 288.1 '294.2 '289.7 282.8 161.0 253.7 220.2 167.6 316.6 117.3 288.5 302.4 288.6 283.3 162.0 253.1 220.6 167.6 320.0 117.3 293.0 308.5 289.2 294.0 165.8 259.9 222.7 172.4 328.7 119.9 302.8 315.0 291.9 295.4 171.9 257.6 226.9 177.5 328.9 119.9 303.1 315.7 293.0 3333 3334 3351 3353 3354 3355 3411 3425 3431 3465 Primary zin c.................................................................................. Primary aluminum.......................................................................... Copper rolling and drawing ............................................................ Aluminum sheet plate and foil (12/75 = 100).................................. Aluminum extruded products (12/75 = 100).................................... Aluminum rolling, drawing, n.e.c. (12/75 = 100) .............................. Metal cans.................................................................................... Hand saws and saw blades (12/72 = 100) .................................... Metal sanitary ware........................................................................ Automotive stampings (12/75 = 100) ............................................ 269.9 298.3 227.6 158.2 167.7 146.2 291.6 182.0 248.3 137.0 272.4 267.0 253.1 153.5 158.9 141.0 277.3 174.6 242.1 132.4 279.6 267.8 238.6 155.5 160.9 141.1 279.9 176.4 243.1 132.7 274.3 276.0 227.4 157.8 167.7 143.8 295.1 178.0 245,5 133.5 268.2 287.0 222.8 157.6 167.7 145.2 295.2 181.5 249.7 133.8 268.6 290.1 220.2 157.8 167.7 146.7 294.9 181,9 249.9 137.8 255.9 312.1 222.8 158.2 168.3 147.4 295.6 183.5 250.9 137.8 255.9 312.2 226.2 157.6 168.4 147.6 295.9 185.4 251.4 139.8 264.0 313.0 220.2 157.6 168.2 147.5 296.1 185.8 251.4 140.1 269.9 '325.6 '222.0 '161.5 '173.2 '150.7 297.9 '186.8 251.5 '140,2 279.3 329.9 223.1 163.3 176.3 151.3 297.2 186.9 252.1 141.2 287.5 329.4 223.1 165.1 176.4 151.2 297.4 190.2 253.7 141.5 289.4 333.9 221.9 169.3 176.8 155.5 302.1 195.0 255.9 143.3 296.3 334.9 215.4 170.7 177.1 157.5 303.0 195.1 256.3 144.1 3482 3493 3494 3498 3519 3531 3532 3533 3534 3542 Small arms ammunition (12/75 = 100) .......................................... Steel springs, except wire .............................................................. Valves and pipe fittings (12/71 = 100)............................................ Fabricated pipe and fittings ............................................................ Internal combustion engines, n.e.c..................................................... Construction machinery (12/76 = 100) .......................................... Mining machinery (12/72 = 100).................................................... Oilfield machinery and equipment.................................................... Elevators and moving stairways...................................................... Machine tools, metal forming types (12/71 =100) .......................... 146.8 230.2 229.7 315.5 274.9 140.9 258.3 337.7 239.2 279.6 143.2 226.6 219.6 301.8 261.8 135.7 247.1 316.2 226,1 268.1 142.6 228.6 223.1 303.5 266.1 136.3 247.8 318.9 229.1 269.4 141.7 229.2 229.4 313.0 270.6 138.6 256.0 329.8 232.6 274.3 141.4 229.2 229.9 313.1 271.6 139.5 257.3 333.1 234.1 275.1 144.6 230.3 231.8 313.8 271.7 140.3 258.2 337.4 242.8 279.2 145.1 230.3 232.5 317.2 276.8 141.8 259.4 342.6 244.2 284.3 147.3 230.8 232.7 317.2 278.6 142,7 262.0 345.7 243.8 285.3 145.3 231.9 233.3 319.9 283.2 143.8 264.1 347.3 246.4 285,6 ' 145.8 '233.0 '235.8 325.0 '285.2 '146.0 '266.0 '352.9 248.3 '286.8 151.1 232.9 235.6 329.9 287.1 145.8 267.9 357.8 248.4 287.9 161.3 233.9 237.6 329.9 288.5 146.7 269.6 360.9 249.5 292.5 158.2 238.2 239.0 335.7 293.0 148.9 271.9 366.5 250.3 298.1 163.2 239.0 240.8 335.7 294.2 150.4 273.5 373.7 250.3 298.5 3546 3552 3553 3576 3592 3612 3623 3631 3632 3633 Power driven hand tools (12/76 = 100).......................................... Textile machinery (12/69 = 100).................................................... Woodworking machinery (12/72 = 100).......................................... Scales and balances, excluding laboratory ...................................... Carburetors, pistons, rings, valves (6/76 = 100).............................. Transformers ................................................................................ Welding apparatus, electric (12/72 = 100)...................................... Household cooking equipment (12/75 = 100).................................. Household refrigerators, freezers (6/76 = 100) .............................. Household laundry equipment (12/73 = 100).................................. 132.0 216.6 212.6 212.7 156.5 185.0 209.7 133.0 120.9 162.0 126.6 205.2 201.6 205.8 147.8 176.6 203.3 129.3 118.5 156,6 127.4 207.0 205.1 206.6 148.6 177.5 206.0 129.4 118.6 158.3 129.0 213.4 212.3 207.5 152.6 180.5 207.0 129.7 119.3 160.3 131.2 213.6 212.1 208.2 153.0 181.5 209.2 133.1 119.4 161.7 131.1 217.0 213.7 208.6 153.5 182.9 211.0 134.7 122.0 162,3 133.5 221.7 215.9 215.4 158.6 186.0 212.1 134.9 122.2 161.2 134.5 222.1 216.0 226.2 159.3 190.6 212.1 134.4 122.2 163.6 135.3 222.3 216.0 226.2 160.1 190.7 211.7 134.7 123.3 165.5 '136.6 '223.8 '217.0 '226.3 '164.9 '193.9 '214.4 '134.8 '124.1 166.1 136.4 224,5 218.1 217.7 165.0 192.8 214.2 134.9 123.7 166.6 137.6 226.0 221.9 218.0 167.4 193.4 215.5 137.1 123.8 167.3 141.7 231.1 222.9 219.8 168.7 195.2 218.3 140.1 126.2 169.7 143.9 233.7 223.1 221.1 170.6 197.0 220.0 140.8 126.1 170.1 3635 3636 3641 3644 3646 3648 3671 3674 3675 3676 Household vacuum cleaners .......................................................... Sewing machines (12/75 = 100).................................................... Electric lamps................................................................................ Noncurrent-carrying wiring devices (12/72 = 100) .......................... Commercial lighting fixtures (12/75 = 100) .................................... Lighting equipment, n.e.c. (12/75 = 100) ........................................ Electron tubes receiving type.......................................................... Semiconductors and related devices .............................................. Electronic capacitors (12/75 = 100) .............................................. Electronic resistors (12/75 = 100).................................................. 152.2 128.9 260.1 220.3 139.3 139.9 251.8 90.6 162.6 134.1 149.7 129.2 252.4 215.2 134.3 133.2 229.4 88.5 149.1 128.8 151,3 129.2 251.8 215.3 136.2 134.6 229.7 89.3 151.3 131.8 148.6 129.2 252.3 217.4 138.0 139.4 254.0 90.4 157.0 131.9 149.3 129 2 251.3 218.2 138.5 140.2 254.7 91.2 160.7 133.0 155.8 129.2 258.1 220.4 139.2 140.7 255.2 92.0 160.5 135.2 158.4 130.0 266.3 220.3 139.2 140.7 255.5 92.1 168.6 135.3 158.5 130.0 268.1 220.7 140.4 140.9 255.6 91.8 172.6 136.3 158.6 130.0 269.2 220.9 142.3 143.2 255.7 92.0 174.0 136.9 '158.8 '130.3 '268.7 '221.8 ' 142.8 '143.3 264.6 ' 91.8 '170.1 137.7 152.2 129.7 269.3 225.0 143.4 144.5 264.8 91.1 170.1 137.7 152.5 129.7 266.2 231.2 145.0 144.9 272.7 91.1 170.1 137.8 152.6 129.7 265.9 235.3 145.6 146.3 284.3 90.6 170.3 138.1 149.9 129.7 271.2 238.5 148.5 146.8 284,5 90.8 170.6 138.8 3678 3692 3711 3942 3944 3955 3995 3996 Electronic connectors (12/75 = 100).............................................. Primary batteries, dry and w e t........................................................ Motor vehicles and car bodies (12/75 = 100).................................. Dolls (12/75 - 100)...................................................................... Games, toys, and children’s vehicles .............................................. Carbon paper and inked ribbons (12/75 = 100).............................. Burial caskets (6/76 = 100) .......................................................... Hard surface floor coverings (12/75 = 100).................................... 146.2 176.5 136.6 126.8 204.5 132.9 131.2 143.7 146.4 176.5 131.6 125.4 203.8 128.2 128.3 138.7 146.7 176.6 131.8 125,6 204.0 128.3 128,3 138.7 146.5 176.8 135.5 127.7 205.0 131.5 128.4 143.2 146.8 176 4 134.5 128.4 205.3 133.3 130.3 143.3 148.7 176.4 134.6 128.4 205.9 136.4 132.2 143.3 148.9 176.4 137.3 128.4 206.0 135.0 132.2 146.1 149.1 176.7 137.9 128.4 206.0 135.0 132.2 146.6 149.6 176.8 131.4 128.4 206.6 135.0 132.9 146.6 '149.7 176,9 '144.5 '128.3 '207.0 135.0 132.9 146.6 150.0 176.9 144.1 126.6 205.2 135.0 132.9 146.6 150.1 176.9 143.6 126.6 205.4 135.0 135.0 146.6 152.6 179.0 145.0 129.0 210.4 133.1 135.0 148.6 153.7 183.3 145.1 129.1 214.7 136.4 135.0 148.6 'Data for October 1980 have been revised to reflect the availability of late reports and corrections by respondents. All data are subject to revision 4 months after original publication. 110 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2Not available, r=revised. PRODUCTIVITY DATA data are compiled by the Bureau of Labor Statistics from establishment data and from estimates of com pensation and output supplied by the U.S. Department of Commerce and the Federal Reserve Board. P r o d u c t iv it y Definitions O u tp u t is the constant dollar gross domestic product produced in a given period. Indexes of o u tp u t p er h o u r o f la b o r in p u t, or labor pro ductivity, measure the value of goods and services produced per hour of labor. C o m p e n s a tio n per h o u r includes wages and salaries of em ployees plus employers’ contributions for social insurance and private benefit plans. The data also include an estimate of wages, salaries, and supplementary payments for the self-employed, except for nonfinancial corporations, in which there are no self-employed. R e a l c o m p e n s a tio n p er h o u r is compensation per hour adjusted by the Consumer Price Index for All Urban Consumers. U n it la b o r c o s t measures the labor compensation cost required to produce one unit of output and is derived by dividing compensation by output. U n it n o n la b o r p a y m e n ts include profits, depreciation, in terest, and indirect taxes per unit of output. They are computed by subtracting compensation of all persons from the current dollar gross domestic product and dividing by output. In these tables, U n it n o n la b o r c o s t s contain all the components of unit nonlabor payments except unit profits. U n it p r o fits include corporate profits and invento ry valuation adjustments per unit of output. The im p lic it p r ic e d e fla to r is derived by dividing the current dollar estimate of gross product by the constant dollar estimate, making the deflator, in effect, a price index for gross product of the sector reported. 31. The use of the term “man-hours” to identify the labor component of productivity and costs, in tables 31 through 34, has been discontin ued. H o u r s o f a ll p e r so n s is now used to describe the labor input of payroll workers, self-employed persons, and unpaid family workers. O u t p u t p er a ll- e m p lo y e e h o u r is now used to describe labor productiv ity in nonfinancial corporations where there are no self-employed. Notes on the data In the private business sector and the nonfarm business sector, the basis for the output measure employed in the computation of output per hour is Gross Domestic Product rather than Gross National Product. Computation of hours includes estimates of nonfarm and farm proprietor hours. Output data are supplied by the Bureau of Economic Analysis, U.S. Department of Commerce, and the Federal Reserve Board. Quarterly manufacturing output indexes are adjusted by the Bureau of Labor Statistics to annual estimates of output (gross product originating) from the Bureau of Economic Analysis. Compensation and hours data are from the Bureau of Economic Analysis and the Bureau of Labor Statistics. Beginning with the September 1976 issue of the R ev ie w , tables 3134 were revised to reflect changeover to the new series— private busi ness sector and nonfarm business sector— which differ from the previously published total private economy and nonfarm sector in that output imputed for owner-occupied dwellings and the household and institutions sectors, as well as the statistical discrepancy, are omitted. For a detailed explanation, see J. R. Norsworthy and L. J. Fulco, “New sector definitions for productivity series,” M o n th ly L a b o r R ev ie w , October 1976, pages 40-42. Annual indexes of productivity, hourly compensation, unit costs, and prices, 1950-80 [1977 = 100] Ite m Private business sector: Output per hour of all persons ........................ Compensation per hour .................................. Real compensation per hour............................ Unit labor co s t................................................ Unit nonlabor payments .................................. Implicit price deflator ...................................... Nonfarm business sector: Output per hour of all persons ........................ Compensation per hour .................................. Real compensation per hour............................ Unit labor co s t................................................ Unit nonlabor payments .................................. Implicit price deflator ...................................... Nonfinancial corporations: Output per hour of all employees .................... Compensation per hour .................................. Real compensation per hour............................ Unit labor c o s t................................................ Unit nonlabor payments .................................. Implicit price deflator ...................................... Manufacturing: Output per hour of all persons ........................ Compensation per hour .................................. Real compensation per hour............................ Unit labor c o st.............................................. Unit nonlabor payments .................................. Implicit price deflator ...................................... ' Not available. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1950 1955 1960 1965 1970 1973 1974 1975 1976 1977 1978 1979 1980 50.3 20.0 50.4 39.8 43.5 41.0 58.2 26.3 59.6 45.2 47.8 46.1 65.1 33.9 69.4 52.1 50.8 51.7 78.2 41.7 80.0 53.3 57.8 54.8 86.1 58.2 90.8 67.6 63.4 66.2 94.8 71.3 97.3 75.2 75.6 75.3 92.7 78.0 95.9 84.2 78.9 82.4 94.8 85.5 96.3 90.2 90.7 90.4 97.9 92.9 98.8 94.8 94,4 94.7 100.0 100,0 100.0 100.0 100.0 100,0 99.8 108.4 100.7 108.6 105.1 107.4 99.4 119.2 99.5 119.9 110.9 116.9 99.0 131.1 96.4 132.4 '118.1 127.6 56.2 21.8 55.0 38.8 42.8 40.2 62.7 28.3 63.9 45.1 47.9 46.0 68.2 35.6 73.0 52.3 50.5 51.7 80.4 42.8 82.2 53.2 58.2 54.9 86.7 58.6 91.5 67.6 64.0 66.4 95.3 71.7 97.7 75.2 71.9 74.1 93.1 78.4 96.4 84,3 76.1 81.6 95.0 86.0 96.8 90.5 88.9 89.9 98.1 93.0 99.0 94.8 94.0 94,5 100.0 100.0 100.0 100.0 100.0 100.0 99.8 108.5 100.7 108.7 103.6 107.0 99.0 118.8 992 120.0 108.5 116.2 '98.4 130.4 95.9 132,4 '117.4 '127.8 (’ ) ( ') <’ > ( ') (’ ) (’ ) (’ ) n n (’ > 66.3 36.3 74.2 54.7 54.6 54.7 79.9 43.0 826 53.8 60.8 56.2 85.4 58.3 91,0 68.3 63.1 66.5 94.5 70.8 96.5 74.9 70.7 73.4 91.3 77.6 95.4 85.1 75.7 81.8 94.4 85.5 96.3 90.6 90.9 90.7 97.4 92.5 98.5 95.0 95.0 95.0 100.0 100.0 100.0 100.0 100.0 100.0 100.4 108.2 100.5 107.8 103.8 106.4 ' 100.3 '118,6 99.0 118.2 108.3 114.8 p 100.6 0130.4 p 95.9 p 129.6 p 117.0 p 125.2 ' 49.5 21.5 54.1 r 43.4 '55.1 '46,8 '56.5 28.8 65.2 '51.0 ' 59.4 ' 53.4 '60.1 36.7 75.1 61.1 '62.0 61.3 '74.6 42.9 82.3 '57.4 70.3 61.2 '79.2 57.6 89.9 '72.7 '66.0 70.7 93.1 69.1 94.2 '74.2 71.6 73.4 '90.9 76.4 93.9 '84.1 '70.4 '80.1 '93.5 85.5 96.3 '91.4 '88.5 '90.6 '97.7 92.4 98.3 '94.6 ' 95.1 '94.7 100.0 100,0 100.0 100.0 100.0 100.0 100.9 108,2 100.5 '107.3 ' 104.7 106.5 '101.9 118.7 99.1 '116.5 '105.7 '113.4 '101.4 131.2 96.5 '129.3 (’ ) (’ ) (') (') r = revised. Ill MONTHLY LABOR REVIEW April 1981 • Current Labor Statistics: Productivity 32. Annual changes in productivity, hourly compensation, unit costs, and prices, 1969-79 A n n u al ra te Year of change Ite m 1972 1973 1974 1975 1976 1977 1978 1979 1980 1 9 6 0-80 3.5 6.5 3.1 2.9 4.5 3.4 2.7 8.0 1.7 5.2 5.9 5.4 -2.3 9.4 -1.4 11.9 4.4 9.4 2.3 9.6 0.4 7.2 15.0 9.7 3.3 8.6 2.7 5.1 4.1 4.7 2.1 7.7 1.2 5.5 5.9 5.6 -0.2 8.4 0.7 8.6 5.1 7.4 -0.4 9.9 -1.2 10.4 5.5 8.8 r -0.4 10.0 -3.1 r 10.5 '6.4 9.2 2.5 6.0 2.4 3.5 3.2 3.4 2.2 7.1 1.9 4.8 4.4 4.7 0.3 7.0 1.0 6.6 1.1 4.8 3.3 6.6 2.2 3.1 7.4 4.5 3.7 6.7 3.3 2.8 3.2 3.0 2.5 7.6 1.3 4.9 1.3 3.7 -2.4 9.4 -1.4 12.1 5.9 10.1 2.1 9.6 0.4 7.4 16.7 10.3 3.2 8.1 2.2 4.7 5.7 5.1 2.0 7.6 1.0 5.5 6.4 5.8 -0.2 8.5 0.7 8.7 3.6 7.0 -0.8 9.6 -1.5 10.4 4.8 8.6 '9.7 -3.3 r 10.4 '8.2 9.7 2.1 5.7 2.1 3.5 3.1 3.4 1.9 6.8 1.6 4.8 4.2 4.6 0.4 6.8 0.8 6.3 0.5 4.4 4.8 6.5 2.1 1.6 7.4 3.5 3.0 5.8 2.5 2.8 2.7 2.8 2.6 7.7 1.4 4.9 -3.4 9.7 -1.1 13.6 7.1 11.4 3.4 10.1 0.9 6.5 20.1 10.9 3.2 8.2 2.3 4.9 4.6 4.8 2.7 8.1 1.5 5.3 5.2 5.2 0.4 8.2 0.5 7.8 3.8 6.4 r -0.1 r9.6 r -0.2 6.8 0.8 r7.0 -2.5 r4.3 r6.1 6.1 1.8 r5.0 5.4 2.0 r0.3 '0.8 r0.5 r5.4 7.2 0.9 ' -2.4 10.6 -0.3 r 13.3 r —1.8 r9.0 '2.9 11.9 2.5 '8.8 r25.9 r 13.1 4,4 8.0 2.1 '3.4 '".4 r4.6 r2.4 8.3 1.7 r5.7 '5.2 r5.6 '0.9 8.2 0.5 r7.3 r4.7 6.5 r 11.2 r3.1 1.5 3.8 r 1.7 ' —3.3 r0.3 I O 3.6 6.6 2.2 2.9 7.6 4.4 ' Not available. 33. 1 9 5 0-80 0.9 7.4 1.4 6.4 0.7 4.5 O o Private business sector: Output per hour of all persons ............................ Compensation per hour ...................................... Real compensation per hour................................ Unit labor cost.................................................... Unit nonlabor payments...................................... Implicit price deflator .......................................... Nonfarm business sector: Output per hour of all persons ............................ Compensation per hour ...................................... Real compensation per hour................................ Unit labor cost.................................................... Unit nonlabor payments...................................... Implicit price deflator .......................................... Nonfinancial corporations: Output per hour of all employees........................ Compensation per hour ...................................... Real compensation per hour................................ Unit labor cost.................................................... Unit nonlabor payments...................................... Implicit price deflator .......................................... Manufacturing: Output per hour of all persons ............................ Compensation per hour ...................................... Real compensation per hour................................ Unit labor cost.................................................... Unit nonlabor payments...................................... Implicit price deflator .......................................... 1971 <y> 1970 9.7 4.4 7.9 p0.3 p9.9 0 -3.2 p9.6 p8.0 p9.1 (’ ) (’ ) (’ ) (’ ) n ( 1) p2.0 p6.7 p 1.5 p4.6 p3.8 p4.3 r 1.0 9.7 -1.4 r8.6 '0.9 r6.4 '0.5 10.5 -2.7 11.0 (’ ) ( 1) 2.5 5.6 2.0 3.1 4.6 4.5 2.4 6.7 1.5 '4.2 '8.3 7.6 r - 1 .5 r = revised. Quarterly indexes of productivity, hourly compensation, unit costs, and prices, seasonally adjusted [1977 = 100] Q u a rte rly in d e x e s A n n u al Ite m Private business sector: Output per hour of all persons ............................ Compensation per hour ...................................... Real compensation per hour................................ Unit labor cost.................................................... Unit nonlabor payments...................................... Implicit price deflator .......................................... Nonfarm business sector: Output per hour of all persons ............................ Compensation per hour ...................................... Real compensation per hour................................ Unit labor cost.................................................... Unit nonlabor payments...................................... Implicit price deflator .......................................... Nonfinancial corporations: Output per hour of all employees........................ Compensation per hour ...................................... Real compensation per hour................................ Total unit costs .................................................. Unit labor cost ............................................ Unit nonlabor costs...................................... Unit profits ........................................................ Implicit price deflator .......................................... Manufacturing: Output per hour of all persons ............................ Compensation per hour ...................................... Real compensation per hour................................ Unit labor cost.................................................... 1Not available. 112 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis a v e ra g e 1978 1979 1980 1979 1980 II III IV I II III IV I II III IV 99.4 119.2 99.5 119.9 110.9 116.9 99.0 131.1 96.4 132.4 '118.1 127.6 99.9 107.1 100.5 107.3 104.8 106.4 100.0 109.4 100.5 109.4 106.7 108.5 99.9 111.9 100.5 112.1 109.1 111.1 99.7 115.0 100.5 115.4 109.6 113.4 99.6 118.0 100.1 118.5 110.4 115.8 99.2 120.5 99.0 121.4 111.5 118.1 99.0 123.0 97.9 124.2 112.3 120.2 99.3 126.0 96.5 127.0 115.3 123.0 98.8 129.7 96.2 131.3 116.0 126.1 99.2 132.8 96.8 133.9 119.8 129.1 '98.5 135.5 95.9 137.3 122.7 '132.2 99.0 118.8 99.2 120.0 108.5 116.2 '98.4 130.4 95.9 132.4 '117.4 '127.4 99.9 107.2 100.6 107.3 103.2 105.9 99.9 109.4 100.5 109.5 105.1 108.0 99.8 111.9 100.5 112.2 107.0 110.5 99.5 114.9 100.4 115.4 107.1 112.6 99.1 117.6 99.8 118.7 107.7 115.1 98.7 119.9 98.6 121.5 109.3 117.4 98.6 122.7 97.7 124.4 110.2 119.7 98.6 125.6 96.2 127.4 114.0 122.9 97.9 129.0 95.7 131.8 115.2 126.3 98.8 131.9 96.1 133.5 119.2 128.8 '98 3 135.0 95.6 '137.3 '121.0 '131.9 '100.3 '118.6 99.0 116.8 118.2 112.7 99.0 114.8 »100.6 p 130.4 p95.9 p 129.8 p 129.6 p 130.4 p 88.9 p 125.2 100.8 '107.0 100.5 105.4 106.2 103.0 105.5 105.4 100.4 109.2 100.2 107.6 108.7 104.4 105.9 107.4 100.5 111.5 100.1 109.6 111.0 106.0 108.9 109.6 100.6 '114.5 '100.1 112.2 113.8 107.8 105.6 111.5 100.6 117.5 99.6 115.3 116.8 111.2 100.7 '113.7 100.3 119.8 98.5 118.2 119.5 114.6 97.5 115.9 99.7 122.4 97.5 121.3 122.8 117.2 92.2 118.1 100.0 125.3 95.9 124.2 125.4 120.9 95.5 121.0 99.8 128.9 95.6 129.2 129.1 129.3 83.4 124.1 101.5 132.1 96.3 131.1 130.2 133.8 89.1 126.4 (’ ) (’ ) (’ ) ( 1) ( 1) n (’ ) ( ) '101.9 118.7 99.1 '116.5 '101.4 131.2 96.5 '129.3 '100.6 106.9 100.3 106.2 101.7 109.1 100.2 107.3 '102.0 111.5 100.1 '109.3 '101.4 114.5 100.1 '112.9 '102.3 118.5 100.5 '115.9 '101.9 119.7 98.4 '117.5 '101.9 122.0 97.2 '119.8 '101.7 125.0 95.7 '122.9 '100.5 129.6 96.1 '128.9 100.2 133.5 97.3 133.2 '103.0 136.8 '96.9 '132.8 r = revised. 1 34. Percent change from preceding quarter and year in productivity, hourly compensation, unit costs, and prices, seasonally adjusted at annual rate [1977 = 100] P e rc e n t c h a n g e fro m s a m e q u a rte r a y e a r a g o Q u a rte rly p e rc e n t c h a n g e at ann u al ra te Private business sector: Output per hour of all persons .................... Compensation per hour .............................. Real compensation per hour........................ Unit labor c o s t............................................ Unit nonlabor payments .............................. Implicit price deflator .................................. Nonfarm business sector: Output per hour of all persons .................... Compensation per hour .............................. Real compensation per hour........................ Unit labor co s t............................................ Unit nonlabor payments .............................. Implicit price deflator .................................. Nonfinancial corporations: Output per hour of all employees ................ Compensation per hour .............................. Real compensation per hour........................ Total unit costs .......................................... Unit labor costs ...................................... Unit nonlabor costs.................................. Unit profits.................................................. Implicit price deflator .................................. Manufacturing: Output per hour of all persons .................... Compensation per hour .............................. Real compensation per hour........................ Unit labor c o s t............................................ 1 Not available. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis IV 1979 II 1979 III 1979 IV 1979 1 1980 II 1980 III 1980 III 1978 IV 1978 I 1979 II 1979 III 1979 to to to to to to to to to to to to III 1979 IV 1979 I 1980 II 1 9 8 0 . III 1980 IV 1980 III 1979 IV 1979 I 1980 II 1980 III 1980 IV 1980 -1.5 8.5 -4.4 10.1 4.2 8.2 -1.1 8.6 -4.4 9.8 2.6 7.4 1.3 10.4 -5.6 9.0 11.3 9.7 -1.9 12.2 -1.3 14.4 2.6 10.5 1.5 9.7 2.4 8.1 13.6 9.8 '- 2 .8 '8.4 -3.4 '11.5 '6.4 '9.9 -0.7 10.1 -1.5 10.9 4.6 8.8 -0.9 9.9 -2.5 10.9 2.9 8.2 -0.4 9.6 -4.0 10.0 5.2 8.4 -0.8 9.9 -3.9 10.8 5.1 9.0 0,0 10.2 -2.3 10.3 7.4 9.4 ' -0.5 10.2 -2.0 '10.7 ' 8.4 ' 10.0 -1.4 8.1 -4.7 9.7 5.9 8.5 -0.3 9.6 -3.5 9.9 3.3 7.8 0.0 9.9 -6.0 9.9 14.6 11.3 -3.0 11.2 -2.2 14.6 4.2 11.3 ' 3.8 '9.3 2.0 5.3 14.9 8.2 ' —1.9 9.6 -2.3 '11.8 '6.1 '10.0 -1.2 9.6 -1.9 10.9 4.0 8.7 -1.1 9.6 -2.7 10.9 3.0 8.3 -0.9 9.4 -4.2 10.4 6.4 9.1 -1.2 9.7 -4.1 11.0 6.9 9.7 0.1 10.0 -2.5 9.9 9.1 9.6 ' -0.3 10.0 -2.2 ' 10.4 '9.8 '10.2 -1.1 8.2 -4.6 10.3 9.5 12.8 -12.0 7.9 ' -2.4 8.9 -4.1 11.0 11.6 9.3 -20.2 7.8 '1.2 '9.8 ' -6.1 9.8 8.6 13.5 15.3 10.3 -0.5 12.0 -1.5 17.0 12.6 30.6 -41.9 10.5 '6.9 10.3 3.0 6.2 3.2 14.7 30.3 7.9 (’ ) ( 1) ( 1) (’ ) ( 1) (’ ) (’ ) ' -0.8 '9.8 '- 2 .6 10.7 10.7 10.6 -15.4 7.8 ' -0.6 9.5 -4.1 10.6 10.1 12.2 -9.5 8.5 -0.7 '9.7 ' -4.1 12.0 10.5 16.3 -17.2 9.1 '1.2 10.3 -2.2 11.0 8.9 16.8 -8.6 9.1 n n ( 1) (') r -0.1 '9.8 ' -1.7 9.9 9.9 9.8 -7.9 7.9 r -1.6 3.9 -8.4 '5.6 r0.1 8.1 -4.8 '8.0 '0.7 10.1 -5.9 '10.8 '- 4 .6 15.5 1.6 '21.1 '-1 .1 12.7 5.2 ' 14.0 '11.7 '10.3 ' -1.8 ' -1.3 '0.2 9.7 -1.8 '9.5 '0.1 9.4 -2.9 '9.6 ' -0.3 9.1 -4.4 '8.8 ' —1.7 9.3 -4.4 '11.2 ' -1.6 11.6 -1.1 '13.4 r 1.1 12.1 -0.3 '10.9 r n (') (') (') revised. 113 LABOR-MANAGEMENT DATA M a jo r c o l l e c t iv e b a r g a in in g d a t a are obtained from contracts on file at the Bureau of Labor Statistics, direct contact with the parties, and from secondary sources. Addi tional detail is published in C u r r e n t W a g e D e v e l o p m e n t s , a monthly periodical of the Bureau. Data on work stoppages are based on confidential responses to questionnaires mailed by the Bureau of Labor Statistics to parties involved in work stoppages. Stoppages initially come to the attention of the Bureau from reports of Federal and State mediation agencies, newspapers, and union and industry publications. the agreement. C h a n g e s o v e r th e lif e o f th e a g r e e m e n t refer to total agreed upon settlements (exclusive of potential cost-of-living escalator adjustments) expressed at an average annual rate. W a g e -r a te c h a n g e s are expressed as a percent of straight-time hourly earnings, while w a g e a n d b e n e fit c h a n g e s are expressed as a percent of total compensation. E ff e c t iv e w a g e -r a te a d j u s t m e n ts going into effect in major bargaining units measure changes actually placed into effect during the reference period, whether the result of a newly negotiated increase, a deferred increase negotiated in an earlier year, or as a result of a costof-living escalator adjustment. Average adjustments are affected by workers receiving no adjustment, as well as by those receiving in creases or decreases. Definitions W o r k s to p p a g e s include all known strikes or lockouts involving six workers or more and lasting a full shift or longer. Data cover all workers idle one shift or more in establishments directly involved in a stoppage. They do not measure the indirect or secondary effect on other establishments whose employees are idle owing to material or service shortages. Data on wage changes apply to private nonfarm industry agree ments covering 1,000 workers or more. Data on wage and benefit changes c o m b in e d apply only to those agreements covering 5,000 workers or more. F ir s t-y e a r w a g e s e t tle m e n ts refer to pay changes go ing into effect within the first 12 months after the effective date of 35. Wage and benefit settlements in major collective bargaining units, 1976 to date [In percent] A n n u al a v e ra g e Q u a rte rly a v e ra g e S e c to r a n d m e a s u re 1979 1976 1977 1978 1979 1 980 p 1980 p I II III IV 1 II III IV Wage and benefit settlements, all industries: First-year settlements .................................... Annual rate over life of contract ...................... 8.5 6.6 9.6 6.2 8.3 6.3 9.0 6.6 10.4 7.0 2.8 5.3 10.5 7.8 9.0 6.1 8.5 6.0 8.6 6.4 10.1 6.8 11.6 7.3 8.3 5.9 Wage rate settlements, all industries: First-year settlements .................................... Annual rate over life of contract...................... 8.4 6.4 7.8 5.8 7.6 6.4 7.4 6.0 9.5 7.1 5.7 6.6 8.9 7.2 6.8 5.1 6.3 5.3 7.8 6.3 8.7 6.8 10.7 7.4 8.4 6.5 Manufacturing: First-year settlements................................ Annual rate over life of contract ................ 8.9 6.0 8.4 5.5 8.3 6.6 6.9 5.4 7.3 5.4 8.7 7.7 9.7 8.1 6.3 4.7 5.6 4.2 7.0 5.6 6.6 4.9 8.7 5.5 7.6 5.7 Nonmanufacturing (excluding construction): First-year settlements................................ Annual rate over life of contract ................ 8.6 7.2 8.0 5.9 8.0 6.5 7.6 6.2 9.6 6.6 3.2 5.6 8.5 5.8 9.4 6.5 7.8 7.4 9.1 7.1 10.4 8.6 9.4 5.8 8.9 7.4 Construction: First-year settlements................................ Annual rate over life of contract ................ 6.1 6.2 6.3 6.3 6.5 6.2 8.8 8.3 13.6 11.5 9.7 8.2 8.7 8.3 9.7 8.5 7.5 7.6 9.6 9.3 12.7 10.3 15.7 13.3 14.3 12.0 114 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 36. Effective wage adjustments going into effect in major collective bargaining units, 1975 to date [In percent] A v e ra g e q u a rte rly c h a n g e s A v e ra g e a n n u al c h a n g e s S e c to r a n d m e a s u re 1976 1977 1978 1979 1980 e 1979 1978 1980 p IV I II III IV 1 II III IV Total effective wage rate adjustment, all industries .............. Change resulting from — Current settlement................................................ Prior settlement.................................................... Escalator provision .............................................. 8.1 8.0 8.2 9.1 9.3 1.4 1.4 2.6 3.3 1.6 1.5 3.2 3.4 1,2 3.2 3.2 1.6 3.0 3.2 1.7 2.0 3.7 2.4 3.0 3.0 3.1 3.6 3.1 2.6 .4 .5 .5 .2 .6 .6 1.1 1.0 .5 1.0 1.0 1.2 .5 .4 .7 .4 .5 .6 1.1 1.2 ,8 1.6 1.1 .7 .5 .3 .5 Manufacturing ............................................................ Nonmanufacturing ...................................................... 8.5 7.7 8.4 7.6 8.6 7.9 9.6 8.8 9.7 9.0 1.9 1.1 1.5 1.4 2.3 2.8 3.2 3.4 2.4 1.0 1.9 1.3 3.4 3.0 2.9 3.7 1.6 1.0 NOTE: Because of rounding and compounding, the sums of individual items may not equal totals. 37. Work stoppages, 1947 to date N u m b e r o f s to p p a g e s M o n th a n d y e a r B e g in n in g in In e ffe c t m o n th o r y e a r d u rin g m o n th D a y s idle W o rk e rs in v o lv e d B e g in n in g in In e ffe c t m o n th o r y e a r d u rin g m o n th (th o u s a n d s ) (th o u s a n d s ) Num ber (th o u s a n d s ) P e rc e n t o f e s tim a te d w o rk in g tim e 1947 ............................................................ 1948 1949 ........................................................................................ 1950 ........................................................................................ 3,693 3,419 3,606 4,843 2,170 1,960 3,030 2,410 34,600 34,100 50,500 38,800 .30 .28 .44 .33 1951 .......................................................................... 1952 ......................................................................................... 1953 .................................................................................. 1954 1955 ...................................................................................... 4,737 5,117 5,091 3,468 4,320 2,220 3,540 2,400 1,530 2,650 22,900 59,100 28,300 22,600 28,200 .18 .48 .22 .18 22 1956 ........................................................................................ 1957 1958 1959 ............................................................................ 1960 ................................................................ 3,825 3,673 3,694 3,708 3,333 1,900 1,390 2,060 1,880 1,320 33,100 16,500 23,900 69,000 19,100 .24 .12 .18 .50 .14 1961 1962 ........................................................................................ 1963 1964 ........................................ 1965 .......................................................... 3,367 3,614 3,362 3,655 3,963 1,450 1,230 941 1,640 1,550 16,300 18,600 16,100 22,900 23,300 .11 .13 .11 .15 .15 1966 1967 1968 1969 1970 ...................... .................................................... 4,405 4,595 5,045 5,700 5,716 1,960 2,870 2,649 2,481 3,305 25,400 42,100 49,018 42,869 66,414 .15 .25 .28 .24 .37 1971 ........................................................................ 1972 ........................................................................................ 1973 1974 ................................................ 1975 ........................................................................................ 5,138 5,010 5,353 6,074 5,031 3,280 1,714 2,251 2,778 1,746 47,589 27,066 27,948 47,991 31,237 .26 .15 .14 .24 .16 1976 ........................................................................................ 1977 . . 1978 1979 ........................................................................................ 5,648 5,506 4,230 4,827 2,420 2,040 1,623 1,727 37,859 35,822 36,922 34,754 .19 .17 .17 .15 1980p: January ...................................................................... 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