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MONTHLY LABOR REVIEW U.S. Department of Labor Bureau of Labor Statistics April 1988 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis In this Issue: A new ppi price system Labor market indicators in the U.S. and abroad * U.S. DEPARTMENT OF LABOR Ann McLaughlin, 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, DC 20212. Phone: (202) 523-1327. Subscription price per year—$16 domestic; $20 foreign. Single copy $4.75 domestic; $5.94 foreign. Subscription prices and distribution policies for the Monthly Labor Review (ISSN 0098-1818) 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, DC 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. Second-class postage paid at Washington, DC, and at additional mailing addresses. Regional Commissioners for Bureau of Labor Statistics Region I—Boston: Anthony J. Ferrara Kennedy Federal Building, Suite 1603 Boston, MA 02203 Phone: (617) 565-2327 Connecticut Maine Massachusetts New Hampshire Rhode Island Vermont Region II—New York: Samuel M. Ehrenhalt Room 808, 201 Varick Street, New York, NY 10014 Phone: (212) 337-2400 New Jersey New York Puerto Rico Virgin Islands Region III—Philadelphia: Alvin I. Margulis 3535 Market Street P.O. Box 13309, Philadelphia, PA 19101 Phone: (215) 596-1154 Delaware District of Columbia Maryland Pennsylvania Virginia West Virginia Region IV—Atlanta: Donald M. Cruse 1371 Peachtree Street, NE., Atlanta, GA 30367 Phone: (404) 347-4418 Alabama Florida Georgia Kentucky Mississippi North Carolina South Carolina Tennessee Region V—Chicago: Lois L. Orr 9th Floor, Federal Office Building, 230 S. Dearborn Street Chicago, IL 60604 Phone: (312) 353-1880 Illinois Indiana Michigan Minnesota Ohio Wisconsin Region VI—Dallas: Bryan Richey Federal Building, Room 221 525 Griffin Street, Dallas, TX 75202 Phone: (214) 767-6971 Arkansas Louisiana New Mexico Oklahoma Texas April cover: ‘‘Automobile Industry,” an oil study for a 1940 mural by William Gropper (1897-1977); one of the paintings in the exhibit, ‘‘Special Delivery: Murals for the New Deal Era.” on display at the National Museum of American Art, Washington, DC from January 15 through September 11, 1988. Cover design by Melvin B. Moxley https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Regions VII and VIII—Kansas City: Gunnar Engen 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 Regions IX and X—San Francisco: 71 Stevenson Street P.O. Box 3766 San Francisco, CA 94119 Phone: (415) 995-5602 IX American Samoa Arizona California Guam Hawaii Nevada Trust Territory of the Pacific Islands X Alaska Idaho Oregon Washington Sam M. Hirabayashi MONTHLY LABOR REVIEW RESEARCH LIBRARY Federal Reserve Bank of St. Louis APRIL 1988 VOLUME 111, NUMBER 4 Henry Lowenstern, Editor-in-Chief Robert W. Fisher, Executive Editor MAY 0 9 1989 R. Gaddie, M. Zoller 3 New stage of process price system for Producer Price Index The new industry-based system applies input/output relationships of transactions to the measurement of industrial price change I. K. Ford, P. Sturm Mark Scott Sieling 17 c p s revision improves pricing of medical care services Expenditures dropped with rise in employer or government-financed payments; health insurance premiums now allocated to appropriate commodities and services 27 Strong gains in semiconductor productivity tied to innovation High productivity gains, especially in the 1970’s, stemmed mainly from rapid improvements in product design and manufacturing techniques and processes M. W. Dumas, J. E. Henneberger 34 Productivity trends in cotton and synthetic fabrics industry Expanding output per hour during 1972-86 has come about despite low growth of output as the industry attempts to modernize and fend off increased imports Joyanna Moy 39 Unemployment and other job indicators in 10 nations Declining unemployment rates in the U.S., Canada, and the United Kingdom contrast with record highs reached in Japan, France, and Italy during 1987 REPORTS Arthur S. Herman W. M. Eisenberg, H. McDonald Richard M. Devens https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 51 Productivity in industries and government services, 1986 58 Evaluating workplace injury and illness records 60 A movable beast: regional employment patterns DEPARTMENTS 2 51 58 63 65 67 Labor month in review Productivity reports Research summaries Major agreements expiring next month Developments in industrial relations Current labor statistics Labor M onth In Review KLEIN AWARD. The Lawrence R. Klein Award trustees selected the authors of the best articles published in the Monthly Labor Review in 1987 as winners of the 19th annual Klein Award, to be presented at the Bureau of Labor Statistics awards ceremony on May 10. The award for best article by a bls author is shared by Sharon R. Cohany for “ Labor force status of Vietnam-era veterans,” in the February issue; and Michael W. Horrigan for “ Time spent unemployed: a new look at data from the CPS,” in the July issue. Winner for the best article by an author outside bls is Barry Alan Mirkin, an economic affairs officer with the United Nations Economic Commission for Europe, for “ Early retirement as a labor force policy: an international overview,” in the March issue. Cited for honorable mention were bls analysts Joan Borum, James Conley, and Edward Wasilewski for their article, “ Collective bargaining in 1987: local, regional issues to set tone,” in the January issue. The Cohany article focuses on the work experience of veterans of the Vietnam era (August 1964-April 1975). These men, now in their prime working ages, accounted for more than 1 in 4 men ages 30-44 in the labor force, according to data from a special supplement to the April 1985 Current Population Survey. With a 94-percent participation rate, they were as likely to be in the labor force as their nonveteran peers. However, veterans of the Vietnam theater were somewhat less likely to be labor force participants (92 percent), in part because of service-connected disabilities. Vietnam-theater veterans, about 46 percent of the total, were more likely to be unemployed (6.7 percent) than other Vietnam-era veterans (5.4 percent). This reflects their higher incidence of disability and their relatively lower educational attainment and socioeconomic backgrounds. However, black and Hispanic veterans, like 2 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis other veterans, had lower jobless rates than their nonveteran counterparts. Some 7 million Vietnam-era veterans were employed at the time of the April 1985 survey. About 20 percent were working in the public sector, probably because government gives veterans preference in hiring. Despite the availability of veterans’ educational benefits, veterans were less likely to hold college and postgraduate degrees than their nonveteran peers, and this was reflected in the types of jobs they held. Moreover, economic dislocations in recent years have limited the growth of blue-collar jobs, to the detriment of some veterans who left the service with training in craft, repair, and related fields. The Horrigan article examines conceptual and empirical problems in selecting the most appropriate measure of the average total time an individual remains unemployed. The focus of the analysis is a comparison of different methods of using data from the Current Population Survey to construct estimates of unemployment duration. Most earlier studies of duration use published, seasonally adjusted crosssectional data and incorporate the assumption of a steady state level of unemployment. Horrigan presents an alternate model based on seasonally unadjusted unpublished numbers, which provide a monthly breakdown of the distribution of current spell durations by single weeks of unemployment. From this model can be constructed seasonally adjusted estimates of the size of a newly unemployed group and its remaining sizes in successive survey periods. The group-size values can then be used to construct the average p robabilities of rem aining unemployed over time, which in turn can be used to derive nonsteady state estimates of the average time it takes a newly em ployed individual to leave unemployment. Unlike other models of unemployment duration, which tend to lag the business cycle, the new model tends to be coincident with cycle peaks and troughs. The Mirkin article surveys the use of early retirement policies to manipulate the size of the labor force in western countries in recent decades. Such policies have been more prevalent in Europe than in North America because of the relative stagnation of European employment and the more rapid graying of European populations. Following a brief discussion of early retirement programs in general, the author presents an inventory of specific measures implemented on a country-by-country basis and examines the impact of the schemes on the labor force participation of older workers. Finally, the analysis of selected schemes in greater detail provides the basis for Mirkin’s conclusion that the projected aging of western populations threatens the policy viability of early-out plans, which have the unfortunate side effect of masking macroeconomic failings. About the award. Trustees of the Klein Award Fund are Lawrence R. Klein; Charles D. Stewart, president; Ben Burdetsky, secretary-treasurer; Peter Henle; Harold Goldstein; Howard Rosen; and Henry Lowenstem. The award was established in 1968 in honor of Lawrence R. Klein, editorin-chief of the Monthly Labor Review for 22 years until his retirement in 1968. Instead of accepting a retirement gift, Klein donated it and matched the amount collected to initiate the fund. Since then he has contributed regularly to the fund as have others. The purpose of the award is to encourage Review articles that (1) exhibit originality of ideas or method of analysis, (2) adhere to the principles of scientific inquiry, and (3) are well written. Each winning article carries a cash prize of $200. Tax-deductible contributions to the fund may be sent to Ben Burdetsky, SecretaryTreasurer, Lawrence R. Klein Fund, c/o School of Government and Business Administration, The George Washington University, Washington DC 20052. □ New stage of process price system developed for the Producer Price Index The new industry-based system applies input/output transaction relationships to the measurement of industrial price change R o b e r t G a d d ie and M a u r e e n Z oller A new industry-based stage of process price index system was first published with the release of the Producer Price Index for January 1988. This new index system for the first time combines the industry price indexes developed through the Producer Price Index revision with inter-industry trans action data from the Department of Commerce Input/Output Tables of the United States to create a rigorous input/output price model of the industrial economy. Development and publication of this new set of industry-based stage of process indexes accomplishes one of the major objectives of the Producer Price Index revision.1 This revision began in 1977 and now covers virtually all of the nearly 500 Standard Industrial Classification (sic) industries in the mining and manufacturing sectors of the economy. In addition to the new industry-based stage of process price system, the Bureau is continuing to publish the tradi tional commodity-based stage of processing system, which has been the focus of Producer Price Index presentation and analysis since 1978. The new industry-based stage of process system consists of the following specific indexes: 1. Four major output indexes a. Crude processors b. Primary processors c. Semifinished processors d. Finished processors Robert Gaddie and Maureen Zoller are economists in the Office of Prices and Living Conditions, Bureau of Labor Statistics. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2. Four major input indexes with two major subindexes for inputs to final demand a. Inputs to primary processors b. Inputs to semifinished processors c. Inputs to finished processors d. Inputs to final demand (i) Inputs to personal consumption (ii) Inputs to capital investment These new indexes reflect the following advancements in concept and approach: • Explicit conceptual definition of the type of index pro duced. In this new system, each index is explicitly either an index of output from or an index of input to a defined economic activity. • Rigorous allocation of industries to processing stages, using inter-industry shipments flow data developed from the Input/Output Tables of the United States. • Use of net output and net input weighting to eliminate multiple counting of price change within the stage of process system. This article discusses the economic interest and concep tual foundation of stage of process indexes, the algorithms for assignment of industries to processing stages, and the detailed methods of weighting and calculation. Economic interest Although a single number often is used to summarize the rate of inflation in the economy, there are, at any given 3 MONTHLY LABOR REVIEW April 1988 • Stage o f Process Price System for PPI time, a variety of rates of price change which characterize different industries and economic sectors. In 1987, for ex ample, the widely cited Producer Price Index ( p p i ) for Fin ished Goods rose 2.1 percent. However, in the same year, passenger car prices fell 3.1 percent while gasoline prices climbed 20.5 percent. Also in 1987, the index for Crude Materials moved up 8.8 percent and that for Intermediate Materials, Supplies, and Components increased 5.5 percent. A major challenge in constructing price indexes is to develop an index system that summarizes this diversity of price change into meaningful analytic constructs. The Bu reau’s chief mechanism for accomplishing this is the stage of process structure, which has been its primary vehicle for publication and analysis of industrial price change since 1978. The basic idea of a stage of process system is that the economy can be subdivided into distinct economic segments which can be arranged sequentially so that the outputs of earlier segments become inputs to subsequent ones, up through final demand. As a simple example, one economic sector may produce wheat, which is input to another that produces flour, which is input to another that produces bread. To the extent that such a sequential system of proc essing stages can be defined, it is possible to trace the transmission of price change through the economy and to develop information on both the timing and magnitude of price passthroughs to final demand. The stage of process approach is of particular interest when inflationary pressures are first reflected in crude com modities. This was certainly the case with the oil price shocks of the 1970’s, but there has long been concern among economists about how price changes in basic indus tries such as steel are transmitted to other industries and economic sectors. At the time of the 1973-74 oil price shock, the Bureau’s major publication vehicle for producer prices was the “All Commodities” index, which included the full range of priced items irrespective of their degree of fabrication. This index became subject to considerable criticism as oil prices surged because the crude oil price increase was multiplied as it passed through into the cost structures of, first, refined petroleum products manufacturers and then to other produc ers as the higher energy prices were embodied in their cost structures.2 With a stage of process approach, this multiple counting of price change in the same index is limited. In addition, the actual transmission of the crude changes is more easily discerned than when it is masked in a single All Commodi ties index number. In 1978, the Bureau shifted its publication emphasis from the All Commodities index to the commodity-based stage of process system. The latter set of indexes had been calculated for many years as an analytic aid. In the commodity-based stage of process system, products priced in the p p i were allocated to three stages of process based on their degree of 4 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis fabrication and end use. Because industry indexes were not available in the p p i system, it was impossible to create ag gregates that would specifically reflect inputs and outputs of defined economic sectors. But it was at least possible to separate out major stages of a product’s fabrication to miti gate multiple counting of price change. The Finished Goods index was emphasized because it measured the prices of goods nearest final consumption. The Crude and Intermedi ate indexes served both as price measures for less fabricated goods and as possible indicators of future movements in Finished Goods prices as price changes were passed through the economy. While the emphasis on the stage of process system was certainly an analytic advancement from summarizing all price change in a single index number, the commoditybased stage of process system still contains some multiple counting, particularly within the Intermediate Materials index, and is not analytically rigorous in composition or input/output definition. Therefore, the Bureau undertook an effort to produce a stage of process system which would reflect the actual input/output flow of transactions in the economy and which would totally eliminate multiple count ing of price change.3 The new industry-based stage of proc ess system is the result of that effort. Conceptual design An industry-based stage of process design places indus tries in processing stages based on their transaction relation ships to other industries. For example, the agricultural in dustries sell wheat to the flour milling industry which sells flour to the bakery industry. In an industry-based stage of process system, these industries would be placed in sequen tial stages, because that is the way the sales and the cost impacts flow. The industry-based stage of process structure is explicitly based on an input/output matrix as displayed in table 1. The left hand column of table 1 consists of all the producing industries in the economy, plus imports. Along the top of the table are arrayed the same economic sectors, along with final demand. Each box or cell within the matrix represents the output of the category in the left-hand column which is consumed by the category at the top of the column. For example, cell “C” represents the output of primary goods producers which is consumed by producers of semifinished goods. An output index for primary producers will include all of the transactions in cells “A” through “H,” except cell “B ,” which represents the value of sales of primary producers to other primary producers. Alternatively, an input index for primary producers will cover transactions in cells “I,” “J,” “K,” and “L” in the column below primary producers. Again, cell “B” is excluded because it contains only internal sales among primary producers. This generalized input/output matrix can be used to char acterize the basic flow of a stage of process system as well Table 1. Generalized stage of processing input/output table, all industries Consuming industry Producing industry Crude Primary Final demand Semifinished Finished Personal consump tion expenditures Capital investment Exports C D E F G Government purchases Imports 1 Crude J Primary A 6 H Semifinished K Finished L as the real world problems that may occur in constructing one. As mentioned previously, the fundamental idea of a stage of process system is that there are identifiable and distinct economic sectors which can be arranged sequen tially so that the outputs of earlier segments become inputs to subsequent ones up through final demand. Therefore, in an ideal stage of process system, all shipments would occur in the cells just above the shaded diagonal. For example, in an ideal stage of process system, all of the value of output of primary producers would be in cell “C” and all of the value of input to semifinished processors would be in cell “C .” Unfortunately, the real world is more complex. Variations from the ideal stage of process flow take the following forms: • Backflow occurs when part of the output of a given stage of process is consumed by an earlier stage of process. Cell “A” in table 1 represents backflow because output of primary producers is consumed by crude producers. For example, the refined petroleum industry is a primary pro ducer but crude goods industries all use petroleum prod ucts such as gasoline. The value of these sales is a backflow. • Internal flow occurs when part of the output of a given stage of process is consumed ¿vithin that stage of process. Cell “B” in table 1 represents internal flow because it is both output and input to primary producers. The refined petroleum industry also sells gasoline to other primary industries. The value of these sales is an internal flow. • Skips occur when part of the output of a given stage of process is consumed by stages of process beyond the one next forward. Cell “D” in table 1 represents a skip be cause part of the output of primary producers is consumed by finished producers, a category two stages forward from primary. Continuing the petroleum example, the refined petroleum industry sells a portion of its products directly to finished goods producers. The value of these sales is a skip. • Leakages occur if some portion of output does not appear as input anywhere in the system. This cannot occur if the stage of process system is comprehensive of all transac https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis tions, but it is of interest because leakage does occur in partial systems. For example, p p i pricing at this time does not include motor freight (trucking). Therefore, in a stage of process design based on the current p p i price universe, the sales of gasoline and diesel fuel to the trucking indus try will simply “leak” out of the system. These outputs will not appear as inputs because the trucking industry which consumes them is not priced. Much of the discussion of stage of process design empha sizes minimization of backflow as the primary goal. Backflow is a substantial problem, because it introduces circular ity into what is supposed to be a sequential system. Additionally, if output is flowing backward, it obviously impairs the forward directionality of the index system which is crucial to its analytic usefulness. The existence of internal flow has some of the same effects. While internal flow does not cause circularity in the system, it does reduce its forward directionality. Equally as important if not more so, large internal flows would tend to indicate a faulty taxonomy. That is to say, if industries within a stage of process are substantially shipping to each other, there probably are within that stage of process two or more real processing stages which should be separated. The p p i industry stage of process design takes both backflow and internal flow into account by emphasizing the goal of maximum net forward flow. In terms of table 1, this means that the system should maximize the value of ship ments appearing above and to the right of the shaded diago nal. Skips and leakages present a somewhat different set of problems. While they do not affect directionality of the system, they do create difference between the output of one processing stage and inputs to the next. Leakages are a particularly significant problem because current p p i pricing is substantially limited to mining, manufacturing, and agri culture. Pricing of the service sector is spotty and is only slowly being expanded. Because skips and leakages cannot at this time be avoided, the p p i stage of process system explicitly provides material input indexes for each stage of process beyond 5 MONTHLY LABOR REVIEW April 1988 • Stage o f Process Price System for PPI crude producers. Input indexes also compensate for what ever problems of backflow remain after forward flow is maximized. The difference between the output index of one processing stage and the material input index to the next can be evaluated specifically by comparing these indexes in the ppi system. Categorization of industries The ppi stage of process design began with the determina tion that there should be four stages of process: • • • • Crude producers Primary producers Semifinished producers Finished producers This categorization reflects a considerable amount of experi ence with stage of process index problems. It particularly reflects concern that the Intermediate Materials component in the traditional three-stage ppi system is too broad and is masking significant internal differences. In addition, through the course of allocating industries to processing stages, the magnitude of internal flow was specifically eval uated. The relatively small amount of internal flow achieved indicates that a four-part division is appropriate. The key set of data needed to allocate industries to proc essing stages is comprehensive information on the pattern of inter-industry shipments. The basic source of this informa tion is the Input/Output Tables of the United States pub lished by the U.S. Department of Commerce. The input/output tables show all output of goods and services produced by industry and show the goods and services each industry consumes. Using an assumption that firms are indifferent as to the industry of origin for the goods and services they buy, these tables can be recalculated into a matrix of inter industry shipments. These data can then be used to rigor ously evaluate the flow characteristics of any given stage of process allocation. This was done using the 1977 Input/ Output tables, which were the most recent available for detailed (537-industry) input/output industry definitions. Because final demand is predefined and all of the other processing stages are to be defined through the allocation process, the first step in stage of process allocation is to identify those input/output industries shipping to final de mand. Those that ship exclusively to final demand must be finished goods producers, because they would have no backflow, no internal flow, and only forward flow to final demand. There are, however, many other industries that do not ship exclusively to final demand but ship a large percent age of their product to final demand. The question then becomes, which of these industries should be allocated to the group of finished goods producers? To make that determination, a frequency distribution was constructed for all industries showing the proportion of their net shipments that go to final demand. Clearly, industries shipping more than 95 percent of their output to final de 6 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis mand should be classified as finished goods producers and the frequency diagram showed similar numbers of industries shipping 75 to 85 percent and 86 to 95 percent of their output to final demand. The number of industries in the intervals shipping below 75 percent to final demand fell sharply, however. Therefore, as a first cut, all industries that shipped 75 percent or more of their output to final demand were classified as finished producers. This process was then repeated for earlier stages of proc ess. To determine the first cut for semifinished producers, for example, a frequency distribution was prepared showing shipments of unallocated industries to final demand and to industries previously identified as finished. Through this process, a breakpoint of 60 percent was identified, so that semifinished producers were those industries which shipped 60 percent of their output to finished producers and final demand but shipped less than 75 percent of their output to final demand alone. A forward breakpoint of 60 percent was also identified for primary producers. Crude producers were the industries left over after the other stages of process were defined. The result of this series of preliminary allocations was a base stage of processing allocation which could then be iteratively improved by analyzing the net forward flow con tribution of individual industries. The specific mechanism for this analysis was calculation of the net forward flow effect for each industry if it were placed in each processing stage with all other industry allocations remaining un changed. Optimally, an industry should be assigned to the processing stage in which its net forward flow contribution is largest. The net forward flow effect for each individual industry was expressed as the following: 1. The sum of forward shipments of the industry and the inputs received from prior stages of process, minus 2. The sum of backward shipments of the industry and the inputs received from forward stages of process. Using this procedure, the allocations were iteratively im proved until further reassignments could not significantly improve net forward flow. When the net forward flow statis tics between two stages of process were very close for an individual industry, however, there was a preference for placing the industry with other similar industries and to limit problems with skips. Table 2. Percentages of producing industry output con sumed by stage of process, all industries Consuming industry Producing industry Crude ................................ Primary .............................. Semifinished ..................... Finished.............................. Crude Primary Semifinished Finished Final demand 14.5 7.5 6.2 1.1 30.8 11.8 4.3 1.3 9.5 25.9 7.4 1.1 15.7 20.8 38.8 3.1 29.4 34.0 43.3 93.3 Table 3. Percentages of producing industry output con sumed by stage of process, processor component only Consuming industry Producing industry Crude ................................ Primary .............................. Semifinished ..................... Finished.............................. Crude Primary Semifinished Finished Final demand 17,8 7.7 4.9 1.8 53.3 13.8 3.3 1.1 8.8 34.3 8.2 1.5 4.6 23.0 44.6 6.3 15.5 21.2 38.9 89.3 Table 2 shows the flow characteristics of the final ppi stage of process design. The percentages shown in the table represent that part of the output of each row stage consumed by each column stage. Using primary producers as an exam ple, the flow pattern is as follows: • 7.5 percent of the output of primary producers is con sumed by crude producers. This is a backflow. • 11.8 percent of the output of primary producers is con sumed by primary producers. This is an internal flow. • 80.7 percent of the output of primary producers is con sumed by forward stages of process (25.9 percent by semifinished, plus 20.8 percent by finished, plus 34.0 percent by final demand). This is forward flow. The total flow statistics for the entire stage of process structure are: backflow, 5.01 percent; internal flow, 7.86 percent; forward flow, 87.13 percent; and shipments to the next forward stage of process, 57.30 percent. This system exhibits extremely strong directionality with very small backflow. In addition, the relatively small per centages of internal shipments indicate that the four-stage taxonomy is effectively isolating processing stages. How ever, there remains a problem with skips, because only 57.30 percent of shipments are going to the next forward processing stage. This serves to underline the importance of specific input indexes as components of the stage of process system. In addition to considering the flow characteristics of a complete model involving all industries in the economy, the p p i design has to consider the flow characteristics of a more limited model which corresponds to the industries now priced. Although the p p i is moving to increase its coverage of the service sector, the bulk of p p i pricing remains in agriculture, mining, and manufacturing. The set of stage of process indexes that the Bureau is able to produce at this time thus is limited to “processors,” or those industries that are primarily engaged in the physical transformation of goods. The net shipments of processors accounted for 42 percent of the total net value of output of all producing industries in the economy, according to the 1977 input/output tables. A flow analysis was calculated for the processor compo nent alone to evaluate the allocation design for the specific set of industries that would be covered by currently available https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Producer Price Indexes. The flows in this analysis represent shipments by processors to all industries (processors and nonprocessors) and to final demand. The results appear in table 3. The summary flow statistics: backflow, 5.76 per cent; internal flow, 10.59 percent; forward flow, 83.66 per cent. The flow pattern for processors alone is nearly as good as for all industries. The ppi system thus can be rather straight forwardly constructed in two steps. The first step is to pro duce input and output indexes for processors alone and for processors’ input to final demand, using currently available Producer Price Indexes. The second step is to construct a set of indexes for nonprocessors and for the total economy as ppi index coverage is expanded. The new stage of process indexes just introduced reflect completion of the first step of the long-term construction of this system. Output indexes for processors The result of the allocation process described above was to place each of the 537 input/output industries in its appro priate stage of process. To create ppi output price indexes, it is necessary to match the ppi four-digit industry net output indexes4 to those input/output industries that are processors, and then to weight them appropriately. The Department of Commerce publishes a general con cordance between the input/output industry classification and the Standard Industrial Classification. This leads to unique assignment of most four-digit ppi industries which are based on the sic system. For those remaining cases in which there was not a one-to-one match between input/out put and ppi industries, the ppi industries were assigned to the input/output industry that appeared to reflect the bulk of the ppi industry’s shipments value. Through this process, each ppi four-digit industry was assigned to one, and only one, stage of process. The final allocation of ppi industries by stage of process appears in exhibit 1. The industries are weighted into the stage of process total based on their 1982 net output value of shipments. The net output value includes only that portion of output value which goes to industries in other stages of process and excludes shipments among industries within a stage of proc ess. Net output weighting eliminates multiple counting of price change by weighting only those prices that affect other economic sectors. The specific methodology for the indus try weights within a stage of process is to multiply the 1982 total value of industry shipments, generally available from either the 1982 Census of Manufactures or Census of Min eral Industries, by a net output ratio calculated from the input/output tables. The net output ratio is the proportion of industry shipments that goes to industries outside the stage of process. The net output weights are then applied to the ppi four digit industry indexes, as currently published in table 5 of the Bureau’s publication Producer Price Indexes, to calcu late aggregate indexes by stage of process. Several sub7 MONTHLY LABOR REVIEW April 1988 • Stage o f Process Price System for PPI indexes also are produced within each stage of process which correspond to important economic characteristics. For example, separate subindexes are produced for foods processors, energy processors, nondurable goods proces sors, and durable goods processors. The output indexes by stage of process will be published as table 12 in Producer Price Indexes. An example of the output index system ap pears here as table 4. products within an industry’s product line may be consumed by different stages of process. For example, gasoline pro duced by the petroleum refining industry may be consumed at all stages of process while jet fuel would be predomi nantly consumed by the processing stage that included air lines. The input index design, therefore, has to specifically deal with these two issues: • What proportion of a particular industry’s products is consumed by a given stage of process? • What particular mix of those products is consumed by that given stage of process? Input indexes for processors Construction of input indexes by stage of process is some what more complicated than construction of output indexes. In the output indexes, all of an industry’s production is assigned to one, and only one, stage of process. In the input indexes, however, a single industry’s products may be con sumed at several processing stages. In addition, different Table 4. The answer to the first question can be estimated from the input/output tables. Because the input/output tables show consumption of products by commodity category, the pro- Producer Price Indexes and percent changes for the net output of industry by stage of process (June 1987=100) Unadjusted percent changes Unadjusted Grouping1 Relative importance, December 1987 Index2 October 19872 January 19882 February 19882 12 months ending February 1988 3 months ending— May 1987 August 1987 November 1987 February 1988 January 1988 to February 1988 Net output from: Crude processors.................................................................. Crude agricultural and feed processors............................ Crude agricultural processors ....................................... Crude feed processors ................................................. Crude mining processors ................................................. Crude manufacturing processors less feeds ................... Crude nondurables processors .................................... Crude durables processors ........................................... 100.000 9.132 5.438 3.694 48.054 42.814 32.093 10.721 101.2 96.3 93.3 100.9 99.3 104.6 103.2 109.1 101.8 105.1 103.2 108.0 96.0 108.0 105.7 115.7 101.9 108.0 108.8 106.7 95.4 108.5 107.0 113.6 5.3 (3) 28.3 11.6 -2.5 (3) 9.9 17.8 2.6 (3) 18.0 2.9 1.5 (3) 2.0 3.1 2.2 (3) -12.9 0.6 3.3 (3) 2.3 5.0 -0.3 8.8 12.3 4.0 -4.7 3.2 2.2 6.5 0.7 8.1 11.1 3.6 -2 .5 2.8 3.1 2.2 0.1 2.8 5.4 -1.2 -0 .6 0.5 1.2 -1.8 Primary processors .............................................................. Primary agricultural and food processors.......................... Primary agricultural processors .................................... Primary food processors ............................................... Primary mining processors ............................................... Primary manufacturing processors less foods ................. Primary nondurables processors.................................. Primary durables processors......................................... 100.000 15.578 13.684 1.894 0.940 83.482 51.105 32.377 101.4 98.1 97.7 100.7 100.1 102.1 102.0 102.4 100.6 98.0 96.8 107.9 101.4 101.1 99.1 104.4 100.7 98.4 97.7 103.7 101.3 101.1 99.1 104.4 3.4 (3) 0.9 13.3 2.7 (3) 2.5 5.2 2.2 (3) 5.4 9.1 1.2 (3) 2.0 0.7 2.3 (3) -2.3 -3.3 0.3 (3) 4.5 1.1 -0.1 -2 .7 -4.5 12.1 0.1 0.6 -0.2 1.6 -1.0 1.9 2.6 -4.2 1.1 -1 .7 -3 .6 1.8 0.1 0.4 0.9 -3.9 -0.1 0.0 0.0 Semifinished processors ...................................................... Semifinished agricultural and food processors................. Semifinished agricultural processors ............................ Semifinished food processors ....................................... Semifinished manufacturing processors less foods ........ Semifinished nondurables processors .......................... Semifinished durables processors................................ 100.000 22.299 2.919 19.380 77.701 22.684 55.017 100.5 98.7 97.9 98.8 101.0 101.4 100.8 102.2 101.2 114.1 99.5 102.5 103.4 102.1 101.9 99.0 94.6 99.5 102.7 104.0 102.2 3.0 (3) -3.3 1.9 (3) 5.1 2.9 1.0 (3) -1.0 2.8 (3) 0.9 0.6 0.0 (3) -6.4 -1.1 (3) 0.7 0.4 1.3 2.6 34.5 -1.1 0.9 1.1 0.8 0.7 -1.8 -22.4 1.4 1.4 2.3 1.1 -0.3 -2 .2 -17.1 Finished processors.............................................................. Finished foods processors ............................................... Finished mining processors............................................... Finished manufacturing processors less foods................. Finished nondurables processors.................................. Finished durables processors ...................................... 100.000 19.785 1.953 78.263 19.588 58.674 101.2 100.4 103.4 101.3 101.9 101.2 101.6 100.8 105.3 101.7 103.6 101.1 101.9 101.0 108.2 102.0 104.1 101.3 2.4 2.6 7.7 (3) 4.7 1.4 0.5 1.2 (3) 0.5 0.2 0.4 0.9 1.7 (3) 1.4 -0.1 0.6 -0.5 1.2 0.9 0.5 1.1 0.9 1.0 4.6 0.8 2.3 0.2 0.3 0.2 2.8 0.3 0.5 0.2 46.413 53.587 94.562 90.868 44.454 21.376 78.624 63.046 80.215 99.3 103.0 101.7 101.7 104.4 102.2 101.2 102.1 101.4 95.9 107.3 101.7 101.5 107.7 93.3 102.7 103.9 101.8 95.3 108.1 101.5 101.3 108.2 92.5 103.0 104.2 102.1 (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) -4 .9 4.0 -1.0 -1.1 3.1 -2.4 0.7 1.6 0.9 -2 .5 3.5 0.2 -0 .6 0.7 -0.2 -0.2 0.5 -0.9 0.3 0.3 0.3 0.0 0.0 0.0 0.2 0.6 0.1 Special groupings: Crude energy processors ................................................. Crude processors less energy........................................... Crude processors less agriculture.................................... Crude processors less agriculture and fe e d s ................... Crude processors less agriculture, feed, and energy . . . . Primary energy processors............................................... Primary processors less energy ...................................... Primary processors less agriculture, food, and energy . . . Finished processors less fo o d ........................................... 1 1ndexes in this table are derived from the industry indexes in table 5 of the Bureau of Labor Statistics periodical Producer Price Indexes. Industries are allocated to stages of process based on inter-industry shipment patterns from the 1977 input/output relationships. 8 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 0.0 2.8 -10.8 1.8 1.8 0.8 2 All data are subject to revision 4 months after original publication. Data are not seasonally adjusted. 3 Not available. Table 5. Producer Price Indexes and percent changes for net material inputs to industry stage of process and final demand (June 1987=100) Unadjusted percent changes Unadjusted Grouping1 Relative importance, December 1987 Index2 3 months ending— 12 October January February 19872 19882 19882 months ending February 1988 January 1988 May August November February 1987 1987 1987 1988 to February 1988 Net material input to: Primary processors .............................................................. Foods and agricultural products ....................................... Crude food and agricultural products............................ Processed fo o d s ............................................................ E nergy............................................................................... Goods less food and e ne rgy............................................. Mining products less energy ......................................... Nondurables less food and energy................................ Durables......................................................................... 100.000 12.388 5.634 6.754 37.539 50.072 1.592 30.522 17.958 102.0 97.1 93.0 100.8 100.8 104.2 97.1 103.2 106.8 100.0 105.1 101.4 108.3 90.0 107.0 97.7 104.8 111.9 100.3 107.2 107.8 106.6 89.8 107.1 97.4 105.7 110.8 5.4 18.7 27.7 11.6 -4 .5 10.1 0.2 8.6 13.8 3.5 10.0 18.8 3.0 3.6 2.0 1.2 1.7 2.3 4.6 -6.3 -13.9 0.5 10.3 2.6 -0 .5 2.6 3.0 -0.3 7.7 12.4 4.0 -6.5 3.3 -0.6 2.3 5.6 -2.3 7.0 11.0 3.6 -10.6 1.8 0.1 1.7 2.3 0.3 2.0 6.3 -1 .6 -0.2 0.1 -0.3 0.9 -1 .0 Semifinished processors ..................................................... Foods and agricultural products ...................................... Crude food and agricultural products............................ Processed fo o d s ............................................................ E nergy............................................................................... Goods less food and ene rgy............................................. Mining products less energy ......................................... Nondurables less food and energy................................ Durables......................................................................... 100.000 26.290 24.253 2.037 1.844 71.865 1.003 31.444 39.418 101.3 97.2 96.9 100.6 102.3 102.9 100.3 102.4 103.4 102.5 96.2 95.6 103.4 93.8 105.3 102.1 104.1 106.4 103.0 97.7 97.4 101.2 91.8 105.4 102.1 104.6 106.2 5.3 2.1 1.7 6.5 -2.9 6.7 3.9 6.1 7.4 2.4 5.9 5.8 5.1 3.4 0.9 1.3 0.8 1.0 0.7 -2 .0 -2 .0 -1.1 9.1 1.5 0.7 1.6 1.5 0.2 -4 .7 -5.5 5.0 -2.4 2.3 0.3 1.9 2.7 2.0 3.3 3.7 -2.3 -11.7 1.8 1.5 1.7 2.0 0.5 1.6 1.9 -2.1 -2.1 0.1 Finished processors.............................................................. Foods and agricultural products ....................................... Crude food and agricultural products............................ Processed fo o d s ............................................................ E nergy............................................................................... Goods less food and en e rg y............................................. Mining products less energy ......................................... Nondurables less food and energy................................ Durables......................................................................... 100.000 11.830 3.839 7.991 0.726 87.445 0.063 30.698 56.688 101.2 100.3 102.3 99.5 102.3 101.3 101.3 102.0 101.0 102.6 103.1 107.9 101.0 93.9 102.6 104.5 103.7 101.9 102.4 100.1 98.7 100.7 91.9 102.8 104.5 104.4 102.0 3.3 1.5 -3.8 4.0 -2.9 3.5 5.4 5.5 2.6 0.7 1.4 -3 .0 3.5 3.3 0.5 0.4 0.6 0.6 0.5 -1 .7 -3.0 -1.1 9.1 0.7 1.7 1.0 0.4 1.5 4.5 15.5 -0 .2 -2.6 1.1 0.8 1.8 0.8 0.6 -2 .5 -11.5 1.8 -11.5 1.2 2.5 2.0 0.8 -0 .2 -2 .9 -8.5 -0.3 -2.1 0.2 Final dem and......................................................................... Consumers......................................................................... Foods and agricultural products.................................... Crude food and agricultural products ........................ Processed foods ........................................................ Energy ........................................................................... Consumer goods less food and energy ....................... Mining products less energy....................................... Nondurables less food and ene rgy............................ Durables ..................................................................... Capital investment ............................................................ 100.000 71.917 26.906 2.505 24.402 6.060 38.950 0.003 22.481 16.466 28.083 101.0 100.9 99.7 100.1 99.6 100.6 101.9 101.3 101.8 102.0 101.1 101.1 100.9 100.8 110.6 99.9 91.1 102.6 102.1 103.8 101.1 101.7 101.0 100.6 99.6 96.2 99.9 90.0 103.0 102.1 104.3 101.1 102.0 (3) 2.1 0.9 -5.8 1.5 -2.6 3.6 1.1 5.0 1.6 2.2 (3) 1.3 1.3 -1.8 1.6 5.3 0.6 -1.5 0.7 0.6 0.3 (3) 1.0 -0 .2 -4 .3 0.1 9.0 0.6 0.5 1.2 -0 .4 0.2 0.7 0.5 0.8 20.9 -0.9 -3.8 1.1 2.7 0.6 1.9 0.8 -0 .3 -0 .7 -1 .0 -17.1 0.7 -11.9 1.3 -0 .6 2.5 -0 .5 0.9 -0.1 -0.3 -1.2 -13.0 73.093 93.910 67.004 91.573 62.587 39.687 101.5 101.0 101.6 101.0 101.7 101.5 101.3 101.8 102.2 101.9 101.0 101.0 101.5 101.7 102.6 101.6 101.1 101.2 (3) (3) (3) (3) (3) 0.6 0.9 1.0 1.1 0.4 -0 .4 0.0 0.2 -0.1 0.4 -0 .3 0.1 0.2 0.0 0.5 -0 .2 0.0 0.7 0.1 0.0 -1 .2 0.4 0.0 0.5 0.0 0.3 Special groupings: Final demand less foods and agricultural products........... Final demand less energy................................................. Final demand less food and energy.................................. Consumer goods less energy4 ......................................... Consumer goods less foods and agricultural products4 .. Nondurable consumer goods less foods4 ....................... (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) 0.5 1.1 0.3 -0 .7 -0 .7 1 1ndexes in this table are derived from the product indexes in table 5 of the Bureau of Labor Statistics publication Producer Price Indexes. These indexes are composed of the goods .used by the industries in each of the industry stage of process output indexes as shown by the 1977 input/output relationships. These material inputs include only domestic input and do not include any imported materials which may be used. 2 All data are subject to revision 4 months after original publication. Data are not seasonally adjusted. portionate use is simply the total commodity consumption of industries within the processing stage divided by the total use of the commodity by all industries. The gross commod ity weights for the input indexes thus are the 1982 commod ity value of shipments, usually from the Census of Manufac tures or Census of Mineral Industries, multipled by the proportionate use ratio calculated as above from the input/ output tables. One further step is then required to calculate the final input index weights. The focus of interest in input indexes is in flows into the stage of process, not internal transactions within the stage of process. Therefore, the commodity usage of each processing stage must be reduced by a net input ratio. The net input ratio, calculated from the input/output tables, reflects the proportion of commodity inputs that is received from industries outside the processing stage of interest. For example, the net input ratio for petroleum prod ucts would be high in all processing stages except the one that includes the petroleum refining industry. The total weight available in a given stage of process input index for a single four-digit sic commodity is: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3 Not available. 4 Percent of final input to consumers. 1. The 1982 total value of four-digit sic commodity ship ments, multiplied by 9 MONTHLY LABOR REVIEW Exhibit 1. April 1988 • Stage of Process Price System for PP1 Final allocation of Producer Price Index industries by stage of process sic Industry Crude processors 0115 0116 Com Soybeans 1011 1021 1031 1041 1044 1051 1061 1094 1099 Iron ores Copper ores Lead and zinc ores Gold ores Silver ores Bauxite and other aluminum ores Ferroalloy ores Uranium, radium, and vanadium ores Metal ores, n.e.c. 1111 1213 1311 1321 1389 Anthracite Anthracite mining services Bituminous coal and lignite Bituminous coal and lignite mining services Crude petroleum and natural gas Natural gas liquids Oil and gas field services, n.e.c. 1452 1453 1454 1455 1459 1472 1473 1474 1475 1476 1477 1479 1481 1492 1496 1499 Bentonite Fire clay Fuller’s earth Kaolin and ball clay Clay and related minerals, n.e.c. Barite Fluorspar Potash, soda, and borate minerals Phosphate rock Rock salt Sulfur Chemical and fertilizer mineral mining, n.e.c. Nonmetallic minerals (except fuels) services Gypsum mining Talc, soapstone, and pyrophyllite Miscellaneous nonmetallic minerals 2048 2298 2393 2411 2448 2611 2631 2646 Prepared animal feeds, n.e.c. Cordage and twine Textile bags Logging camps and logging contractors Wood pallets and skids Pulp mills Paperboard mills Pressed and molded pulp goods 2753 2782 2791 2793 2794 2795 Engraving and plate printing Blankbooks and looseleaf binders Typesetting Photoengraving Electrotyping and stereotyping Lithographic platemaking services 2812 2813 2816 2819 Alkalies and chlorine Industrial gases Inorganic pigments Industrial inorganic chemicals, n.e.c. 1112 1211 X 10 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis sic Industry 2821 2823 2824 2843 2861 2865 2869 2873 2874 2875 2879 2893 Plastic materials and resins Cellulosic manmade fibers Noncellulosic organic fibers Surface-active agents Gum and wood chemicals Cyclic (coal tar) crudes and intermediates, organic dyes and pigments Industrial organic chemicals, n.e.c. Nitrogenous fertilizers Phosphatic fertilizers Fertilizers, mixing only Agricultural chemicals, n.e.c. Printing ink 3274 3295 3313 3331 3332 3333 3334 3339 3341 3398 3399 Lime Minerals and earths, ground or treated Electrometallurgical products Primary copper Primary smelted and refined lead Primary zinc Primary aluminum Primary nonferrous metals, n.e.c. Secondary nonferrous metals Metal heat treating Primary metal products, n.e.c. 3412 3565 3624 Metal barrels, drums, and pails Industrial patterns Carbon and graphite products Primary processors 0111 0112 0131 0132 0133 Wheat Rice Cotton Tobacco Sugar crops 0211 0212 0213 0214 0241 0251 0252 0253 0254 0259 0271 0272 0279 0912 Beef cattle feedlots Beef cattle, except feedlots Hogs Sheep and goats Dairy farms Boiler, fryer, and roaster chickens Chicken eggs Turkeys and turkey eggs Poultry hatcheries Poultry and eggs, n.e.c. Fur-bearing animals and rabbits Horses and other equines' Animal specialties, n.e.c. Unprocessed fin fish 1411 1422 1423 1429 1442 1446 Dimension stone Crushed and broken limestone Crushed and broken granite, n.e.c. Crushed and broken stone, n.e.c. Construction sand and gravel Industrial sand Exhibit 1. Continued— Final allocation of Producer Price Index industries by stage of process Industry SIC Primary processors (cont) 2046 2075 2076 Wet corn milling Soybean oil mill products Vegetable oil mills, n.e.c. 2241 2269 2283 2291 2294 2296 2297 2299 Narrow fabric mills Finished yam, raw stock, braided goods and narrow fabric, except knits and wool Spun yarn, except wool Texturing, throwing, and winding mill products: cotton, manmade fibers and silk Wool yam Felt goods, except woven felt and hats Processed textile waste Tire cord and fabric Nonwoven fabrics and related products Textile goods, n.e.c. 2421 2441 2449 2492 2499 Sawmills and planing mills Nailed wood boxes and shook Wood containers, n.e.c. Particleboard Wood products, n.e.c. 2621 2641 2642 2645 2651 2652 2653 2654 2655 2661 Paper mill products except building paper Paper coating and glazing Envelopes Die-cut paper and board Folding paperboard boxes Setup paperboard boxes Corrugated and solid fiber boxes Sanitary food containers Fiber cans, drums and similar products Building paper and building board mills 2751 2752 2754 2761 Commercial printing, letterpress Commercial printing, lithographic Commercial printing, gravure Manifold business forms 2822 2851 2891 2895 2899 Synthetic rubber Paints and allied products Adhesives and sealants Carbon black Chemicals and chemical preparations, n.e.c. 2911 3031 3079 Petroleum refining Reclaimed rubber Miscellaneous plastic products 3211 3221 3229 3231 3241 3264 3291 3292 3293 Flat glass Glass containers Pressed and blown glass, n.e.c. Products of purchased glass Hydraulic cement Procelain electrical supplies Abrasive products Asbestos products Gaskets, packing, and sealing devices 2281 2282 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SIC Industry 3297 3299 Nonclay refractories Nonmetallic mineral products, n.e.c. 3312 3315 3316 3317 3321 3322 3324 3325 3351 3353 3361 3362 3369 Blast furnaces and steel mills Steel wire and related products - mfpm Cold finishing of steel shapes - mfpm Steel pipe and tubes - mfpm Gray iron foundries Malleable iron foundries Steel investment foundries Steel foundries, n.e.c. Rolling, drawing, and extruding of copper Aluminum sheet, plate, foil, and welded tube products Aluminum extruded products Aluminum rolling and drawing, n.e.c. Rolling, drawing, and extruding nonferrous metals, except copper and aluminum Aluminum foundries Brass, bronze, and copper foundries Nonferrous foundries, n.e.c. 3423 3451 3452 3462 3463 3469 3471 3479 3499 Hand and edge tools, n.e.c. Screw machine products Bolts, nuts, screws, rivets, and washers Iron and steel forgings Nonferrous forgings Metal stampings, n.e.c. Metal plating and polishing Metal coating and allied services Fabricated metal products, n.e.c. 3544 Special tools, dies, jigs, fixtures and industrial molds Machine tool accessories Ball and roller bearings Carburetors, pistons, piston rings, and valves Machinery, except electrical, n.e.c. Marking devices Carbon paper and inked ribbons 3354 3355 3356 3545 3562 3592 3599 3953 3955 Semifinished processors 0134 0161 0171 0172 0173 0174 0175 0176 0183 Irish potatoes Vegetables Berry crops Grapes Tree nuts Citrus fruits Deciduous tree fruits Melons Greenhouse and nursery products 2011 2018 2023 2026 2041 2044 Meat packing plants Poultry dressing, poultry and egg processing Condensed and evaporated milk Fluid milk Flour and other grain mill products Rice milling 11 MONTHLY LABOR REVIEW Exhibit 1. April 1988 • Stage o f Process Price System fo r PPI Continued— Final allocation of Producer Price Index industries by stage of process Industry SIC Semifinished processors (cont) 2061 2062 2063 2066 2074 2077 2079 2083 2084 2085 2087 2092 2095 2099 2141 Raw cane sugar mills Cane sugar refining Beet sugar processing Chocolate and cocoa products Cottonseed oil mill products Animal and marine fats and oils Shortening and cooking oils Malt and malt byproducts Wines, brandy and brandy spirits Distilled liquor, except brandy Flavoring extracts and sirups, n.e.c. Fresh or frozen packaged fish Coffee Food preparations, n.e.c. Stemmed and redried tobacco 2211 2221 Cotton broadwoven fabric Synthetic fiber and silk broadwoven fabric Wool weaving and finishing Circular knit fabrics Warp knit fabrics Finished cotton broadwoven fabric Finished synthetic fiber and silk broadwoven fabric Woven carpets and rugs Tufted carpets and rugs Carpets and rugs, n.e.c. Thread mills Lace goods Padding and upholstery filling Coated fabrics, not rubberized 2231 2257 2258 2261 2262 2271 2272 2279 2284 2292 2293 2295 2394 2395 2396 2397 2399 Canvas and related products Pleating, stitching, and tucking Automotive trimmings, apparel findings, and related products Schiffli machine embroideries Fabricated textile products, n.e.c. 2426 2429 2431 2434 2435 2436 2439 2452 2491 Hardwood dimension and flooring Special product sawmills, n.e.c. Millwork Wood kitchen cabinets Hardwood veneer and plywood Softwood plywood Structural wood members, n.e.c. Prefabricated wood buildings and components Wood preserving 2517 2519 2531 2541 Wood tv and radio cabinets Household furniture, n.e.c. Public building and related furniture Wood partitions and fixtures 2643 2649 2711 2721 2732 Bags, except textile bags Convered paper products, n.e.c. Newspaper publishing Periodical publishing Book printing 12 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SIC Industry 2741 2789 Miscellaneous publishing Bookbinding and related work 2831 2833 2834 2892 Biological products Medicinal chemicals and botanical products (in bulk) Pharmaceutical preparations Explosives 2951 2952 2992 3011 3041 3069 Paving mixtures and block Asphalt felts and coatings Lubricating oils and greases Tires and inner tubes Rubber and plastics hose and belting Fabricated rubber products, n.e.c. 3111 3131 Leather tanning and finishing Boot and shoe cut stock and findings 3251 3253 3255 3259 3261 3262 3271 3272 3273 3275 3281 3296 Brick and structural clay tile Ceramic wall and floor tile Clay refractories Structural clay products, n.e.c. Vitreous plumbing fixtures Vitreous china food utensils Concrete block and brick Concrete products Ready mixed concrete Gypsum products Cut stone and stone products Mineral wool 3357 3411 3425 3429 3431 3432 3433 3441 3442 3443 3444 3446 3448 3449 3465 3466 3493 3494 3495 3496 3497 3498 Nonferrous wire drawing and insulating Metal cans Hand saws and saw blades Hardware, n.e.c. Metal sanitary ware Plumbing fixture fittings and brass goods Nonelectric heating equipment Fabricated structural metal Metal doors, sash and trim Fabricated plate work Sheet metal work Architectural and ornamental metalwork Prefabricated metal buildings Miscellaneous metal work Automotive stampings Metal crowns and closures Steel springs, except wire Valves and pipe fittings Wire springs Miscellaneous fabricated wire products Metal foil and leaf Fabricated pipe and fabricated pipe fittings 3519 3534 3536 3561 Internal combustion engines, n.e.c. Elevators and moving stairways Hoists, cranes and monorails Pumps and pumping equipment Exhibit 1. Continued— Final allocation of Producer Price Index industries by stage of process SIC Industry Semifinished processors (cont) 3563 3564 3566 3568 3579 3585 3589 Air and gas compressors Fans and blowers Speed changers, drives, and gears Power transmission equipment, n.e.c. Office machines, not elsewhere classified, and typewriters Refrigeration and heating equipment Service industry machinery 3612 3613 3621 3622 3623 3629 3639 3641 3643 3644 3645 3646 Transformers Switchgear and switchboard apparatus Electric motors and generators Industrial controls Welding apparatus, electric Electrical industrial apparatus, n.e.c. Household appliances, not elsewhere classified Electric lamps Current-carrying wiring devices Noncurrent-carrying wiring devices Residential lighting fixtures Commercial lighting fixtures 3647 3648 3671 3674 3675 3676 3677 3678 3679 3691 3694 3699 Vehicular lighting equipment Lighting equipment, n.e.c. Electron tubes, all types Semiconductors and related devices Electronic capacitors Resistors for electronic applications Electronic coils, transformers, and other inductors Connectors for electronic applications Electronic components, n.e.c. Storage batteries Electrical equipment for internal combustion engines Electrical equipment and supplies, n.e.c. 3714 3724 3728 3764 Motor vehicle parts and accessories Aircraft engines and engine parts Aircraft parts and auxiliary equipment, n.e.c. Guided missile and space vehicle propulsion units and propulsion unit parts Guided missiles and sp^ce vehicle parts and auxiliary equipment 3769 3822 3841 3842 3843 3861 Environmental controls Surgical and medical instruments and apparatus Surgical, orthopedic and prosthetic appliances and supplies Dental equipment and supplies Photographic equipment and supplies 3915 3962 3963 3964 3991 3993 3995 3996 Jewelers’ materials and lapidary work Artificial flowers Buttons Needles, pins, and fasteners Brooms and brushes Signs and advertising displays Burial caskets Hard surface floor coverings https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SIC 3999 Industry Manufacturing industries, n.e.c. Finished processors 1081 1381 1382 Metal mining services Drilling oil and gas wells Oil and gas exploration services 2013 2021 2022 2024 2032 2033 2034 2035 2037 2038 Sausages and other prepared meats Creamery butter Natural and processed cheese Ice cream and frozen desserts Canned specialties Canned fruits and vegetables Dried and dehydrated fruits, vegetables and soup mixes Pickles, sauces and salad dressings Frozen fruits and vegetables Frozen specialties 2043 2045 2047 2051 2052 2065 2067 2082 2086 2091 2097 2098 2111 2121 2131 Cereal breakfast foods Blended and prepared flour Dog, cat, and other pet food Bread, cake, and related products Cookies and crackers Confectionery products Chewing gum and gum base Malt beverages Soft drinks Canned and cured seafoods Manufactured ice Macaroni, spaghetti, and noodles Cigarettes Cigars Chewing and smoking tobacco and snuff 2251 Women’s hosiery knit on 300 needles or more and women’s knee-high socks Hosiery, n.e.c. Knit outerwear Knit underwear and nightwear Knitting mills, n.e.c. Men’s and boys’ suits and coats Men’s and boys’ shirts (except work shirts) and nightwear Men’s and boys’ underwear Men’s and boys’ neckwear Men’s and boys’ separate trousers Men’s and boys’ work clothing Men’s and boys’ clothing, n.e.c. Women’s, misses’, and juniors’ blouses, waists and shirts 2252 2253 2254 2259 2311 2321 2322 2323 2327 2328 2329 2331 2335 2337 2339 2341 2342 2351 Women’s, misses’, and juniors’ dresses Women’s, misses’, and juniors’ suits and coats Women’s, misses’, and juniors’ outerwear, n.e.c. Women’s and children’s underwear and nightwear Brassieres and allied garments Millinery 13 MONTHLY LABOR REVIEW Exhibit 1. April 1988 • Stage o f Process Price System for PPI Continued— Final allocation of Producer Price Index industries by stage of process SIC Industry Finished processors (cont) 2363 2369 Hats and caps, except millinery Girls’, children’s, and infants’ dresses, blouses and shirts Girls’, children’s, and infants’ coats and suits Girls’, children’s, and infants’ outerwear, n.e.c. 2371 2381 2384 2385 2386 2387 2389 2391 2392 Fur goods Fabric dress and work gloves Robes and dressing gowns, except children’s Waterproof outer garments Leather and sheep lined clothing Apparel belts Apparel and accessories, n.e.c. Curtains and draperies Housefumishings n.e.c. 2451 2511 2512 2514 2515 2521 2522 2542 2591 2599 Mobile homes Wood household furniture, except upholstered Upholstered wood household furniture Metal household furniture Mattresses, bedsprings and sleep furniture Wood office furniture Nonwood office furniture Metal partitions and fixtures Drapery hardware and blinds and shades Furniture and fixtures, n.e.c. 2647 2648 2731 2771 Sanitary paper products Stationery products Book publishing Greeting card publishing 2841 2842 Soap and other detergents Specialty cleaning, polishing and sanitation preparations Toilet preparations 2352 2361 2844 2999 3021 3142 3143 3144 3149 3151 3161 3171 3172 3199 3268 3421 3482 3483 3484 3489 Petroleum and coal products, n.e.c. Rubber and plastic footwear House slippers Men’s footwear Women’s footwear Footwear, except rubber, n.e.c. Leather gloves and mittens Luggage Women’s and children’s handbags and purses Personal leather goods, except women’s handbags and purses Leather goods, n.e.c. Pottery products, n.e.c., including fine eathenware food utensils Cutlery Small arms ammunition, 30 mm and under Ammunition, except small arms, n.e.c. Small arms, 30 mm and under Ordnance and accessories, n.e.c. 14 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SIC Industry 3511 3523 3524 3531 3532 3533 3535 3537 3541 3542 3546 3547 3549 Turbines and turbine generator sets Farm machinery and equipment Lawn and garden equipment Construction machinery Mining machinery and equipment Oilfield and gasfield machinery and equipment Conveyor and conveying equipment Industrial trucks and tractors Machine tools, metal cutting types Metal forming machine tools Power driven hand tools Rolling mill machinery Metalworking machinery, n.e.c. 3551 3552 3553 3554 3555 3559 3567 3569 3573 3574 3576 3581 3582 3586 Food products machinery Textile machinery Woodworking machinery Paper industries machinery Printing trades machinery Special industry machinery, n.e.c. Industrial process furnaces and ovens General industrial machinery, n.e.c. Electronic computing equipment Calculating and accounting machines Scales and balances except laboratory Automatic merchandising machines Commercial laundry equipment Measuring and dispensing pumps 3631 3632 3633 3634 3635 3636 3651 3652 3661 3662 3692 3693 Household cooking equipment and parts Household refrigerators and freezers Household laundry equipment Electric housewares and fans Household vaccum cleaners Sewing machines Radio and tv’s, phonographs, and related equipment Phonograph records and prerecorded tapes Telephone and telegraph apparatus Radio and television communication equipment Primary batteries, dry and wet X-ray and electromedical equipment 3711 3713 3715 3716 3721 3731 3732 3743 3751 3761 3792 3795 3799 Motor vehicles and passenger car bodies Truck and bus bodies Truck trailers Motor homes built on purchased chassis Aircraft Ship building and repairing Boat building and repairing Railroad equipment Motorcycles, bicycles, and parts Guided missiles and space vehicles Travel trailers and campers Full-tracked armored vehicles Transportation equipment, n.e.c. 3811 3823 3824 Engineering and scientific instruments Industrial process control instruments Fluid meters and counting devices Exhibit 1. Continued— Final allocation of Producer Price Index industries by stage of process SIC Industry Finished processors (cont) 3825 3829 3832 3851 3873 Electrical measuring and integrating instruments Measuring and controlling devices, not elsewhere classified Optical and analytical instruments Ophthalmic goods Watches, clocks, and watchcases 3911 Jewelry, precious metal n.e.c. == not elsewhere classified. SIC 3914 3931 3942 3944 3949 3951 3952 3961 Industry Silverware, plated ware and stainless steel ware Musical instruments Dolls Games, toys, and children’s vehicles, except dolls and bicycles Sporting and athletic goods, n.e.c. Pens, mechanical pencils, and parts Lead pencils and art goods Costume jewelry and costume novelties, except precious metal mfpm == manufactured from purchased materials. 2. The proportionate use of that commodity by the indus tries in the stage of process, multiplied by 3. The net input ratio for that commodity in that stage of process. were motor vehicle consumption data from the Com merce Department’s Bureau of Economic Analysis and petroleum consumption data from the Department of Energy. If one is willing to assume that the industries within the relevant stage of process consume all specific products within a four-digit sic classification proportionately, the total four-digit commodity index could be used directly in calculating an input index. In many cases, that is a reason able assumption. While the ppi industry index system does not currently contain indexes that are explicitly “wherever made,” the primary products commodity indexes published below the four-digit sic industry indexes in table 5 of Pro ducer Price Indexes cover the great majority of commodity shipments. These indexes thus can be used in constructing input indexes without substantially compromising coverage in most cases. In reviewing the input consumption patterns of stages of process, it was discovered that the consumption of specific products within a general commodity classification was sometimes not proportionate. As an example, within the general classification of motor vehicles, automobiles are more likely to go to personal consumption expenditures and heavy trucks are more likely to go to capital investment. Because the potential for these types of differentiations is virtually endless, the ppi design adopted two guiding princi ples in looking below the four-digit sic commodity classifi cation structure: The final input indexes thus consist of sic-based commodity indexes at the four-digit level, and occasionally lower levels aggregated by net input weights on a 1982 value basis. Input indexes are published for the stages of process be yond the crude category and for final demand. As in the case of the output indexes, a variety of subindexes are also pub lished separating durables and nondurables and other signif icant product types. The input indexes appear as table 13 of Producer Price Indexes, an example of which appears here as table 5. It should be noted that the subdivisions in the input index design are commodity classifications, which are somewhat different than the industry classifications in the output index design. For example, an industry that produces mostly durable products but some nondurable products will reside completely within durables on the output index structure. In the input index structure, however, the durable products will appear under durables and the nondurable products will appear under nondurables. • A breakout below the four-digit sic level will occur only when there is clear evidence of different usage patterns and the difference has substantial effect. The effect judgment is subjective but, in general, the ppi design attempted to avoid introducing index complex ity when it was unlikely to affect the published input index. • Breakouts will be based on objective data to the maxi mum possible extent. This required use of multiple additional data sources, the most important of which https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Comparison with current indexes The new industry-based stage of process system outlined above currently is being published along with the traditional commodity-based stage of process structure which has been the focus of Producer Price Index presentation and analysis. The new index system initially cannot be seasonally ad justed because sufficient historical data do not yet exist to allow accurate adjustment. Clearly, there are significant differences between the current commodity-based stage of process system and the new industry-based system. The most obvious, of course, is that the new industry model has four stages of process while the commodity model has three. The most profound con ceptual difference, however, is that the industry-based sys tem is a transaction flow model of input/output indexes 15 MONTHLY LABOR REVIEW April 1988 • Stage o f Process Price System for PPI while the traditional stage of process system is a commodity transformation model based on degree of fabrication and end use. The new industry-based stage of process system allocates industries to one, and only one, processing stage. It then measures price change of inputs to and outputs from the set of industries composing each stage of process. The traditional commodity stage of process structure allocates commodities based on their degree of fabrication and end use. The indexes in the traditional stage of process structure are not specifically designed as either input or output indexes. Nevertheless, these two assignment mechanisms lead to similar results in many cases. Wheat, flour, and bread are assigned to sequential processing stages in both the tradi tional commodity and new industry stage of process struc tures. This reflects both the degrees of fabrication in the production of bread and the way transactions actually flow between industries in the economy. However, one way in which differences may occur can be seen in the treatment of food grains, such as wheat versus feed grains such as com. In an index structure based on degree of fabrication, food grains and feed grains look sim ilar. They are both raw agricultural products. On the other hand, food grains and feed grains are not the same in terms of the way they get to final consumption. Wheat, for example, takes the direct route of wheat-flourbread mentioned above. In contrast, com goes to final demand through an additional step because it is primarily input to livestock production, another raw agricultural industry. In the traditional commodity system, food grains, feed grains, and livestock appear at the same stage of process because they are all raw agricultural products. In the industry-based stmcture, food grains and livestock appear at the same stage of process because their paths to final de mand are similar, and feed grains appear at an earlier stage of process. This reflects the fact that changes in feed grain prices are likely to take longer to get to final demand than would changes in food grain prices. These important differences in how the new industrybased and the traditional commodity-based stage of process systems are constructed make it difficult to match up in dexes from the two systems. In the case of Finished Goods, the third stage in the traditional commodity system, a close match in the industry system does exist, however. The tradi tional Finished Goods index explicitly defines as finished products those products that go to final demand for personal consumption expenditures and capital investment. The index weights within Finished Goods reflect commodity usage by personal consumption expenditures and capital investment. That is the same conceptual basis as for the industry-based input index for final demand. This is not to say that the industry-based input index to final demand will behave precisely the same as the current Finished Goods index. The calculation methods are some what different and coverage varies to some extent. The overall conceptual designs of the input index to final de m and and the Finished Goods index, how ever, are essen tially the same. At the earlier stages of process in the commodity system there are no precise industry-based analogs. The current ppi Crude Materials index, for example, is neither a conceptual nor operational match to the crude processors output index in the industry system. Neither does the commodity-based Intermediate Materials, Supplies, and Components index have a precise industry-based equivalent. The major analytic innovation of the industry-based stage of process system, therefore, resides not at the end point, which is similar to the commodity system, but in the index sequences that trace price flows through the economy. In these areas, the precise definition of input and output in dexes, the rigorous allocation of industries based on inter industry shipment flows, and the use of net input and net output weighting, can be expected to substantially enhance the analytic power of the Bureau’s stage of process system for producer prices. 1 John F. Early, “Improving the measurement o f producer price change,” Price Index Framework,” July 1980; and “Recommendations For Detailed Classification and Aggregation Structure For The Revised Producer Price Index In a Stage-Of-Process Framework,” May 1983. M o n th ly L a b o r R e v i e w , April 1978, pp. 7 -1 5 . 2 William Nordhaus and John Shoven, “Inflation 1973: The Year of Infamy,” C h a lle n g e , May/June 1974, pp. 14-22. 3 Two papers prepared by the Washington-based consulting firm of Joel Popkin and Company contributed significantly to the conceptual develop ment o f the industry-based stage of process design: “A Stage-Of-Process 16 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4 For a discussion of the concepts and methodology o f industry net output indexes, see Early, “Improving the measurement”; and b l s H a n d b o o k o f M e th o d s , Bulletin 2285 (Bureau of Labor Statistics, 1988), chapter 7, “Producer Prices.” revision provides more accuracy in the medical care services component cpi Expenditures dropped because of increases in employer- or government-financed payments; health insurance premiums are now allocated to appropriate commodities and services; unique categories for professional services and hospital and related services were created In a K a y F o r d and P h il ip S t u r m The medical care services component of the Consumer Price Index ( c p i ) underwent several changes when the c p i was revised. We analyze these changes in expenditure weights, definitions, and structure of the component. We also discuss the methodology (pricing and treatment of quality changes) and data sources used for construction of the medical care services component. In January 1987, the Bureau of Labor Statistics began publication of the revised Consumer Price Index ( c p i ). The major objectives of this revision were (1) to update the content and weights of the market basket of goods and services priced for the c p i ; ( 2 ) to update the statistical sam ple of urban areas, outlets, and uijique items used in calcu lating the c p i ; (3) to improve the statistical methods used for computing a number of c pi components; and (4) to improve operating procedures.1 This article describes the changes in consumption patterns, definitions, methodology, and data sources of the medical care services component of the re vised CPI. Expenditure weights The expenditure weights for the c p i -u (all urban con sumers) and c p i -w (urban wage earners and clerical workers) were developed from the Consumer Expenditure Survey. Ina Kay Ford and Philip Sturm are economists in the Office o f Prices and Living Conditions, Bureau of Labor Statistics. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The revised c p i expenditure weights are based on Consumer Expenditure Survey data for 1982-84 and replace the ex penditures for 1972-73 that were used in the c pi from 1978 through 1986. The Consumer Expenditure Survey is composed of two separate surveys— an interview survey and a diary survey— both conducted by the Bureau of the Census for b l s . The interview survey is used to collect data for expenditures that respondents can remember fairly accurately for periods of approximately 3 months. The diary survey is designed to obtain expenditure information for small, frequently pur chased items that consumers tend to forget. Approximately 5,000 consumer units are contacted each year for each type of survey.2 All of the categories under medical care services had their expenditure weights calculated from the interview survey. These expenditures reflect both out-of-pocket expenses not covered by insurance and health insurance premiums paid by survey households. The 1982-84 Consumer Expenditure Survey data showed that as a proportion of total consumption, the medical care services component was smaller than that of the 1972-73 survey. This decline results from changes in the ways con sumers pay for medical care. Major medical expenses very frequently are partially paid for (and sometimes fully paid for) by health insurance, and many insurance premiums are fully or partially paid by employers or by government. Be- MONTHLY LABOR REVIEW April 1988 CPi Revision o f Medical Services Component cause the c pi reflects only consumer expenditures, em ployer- and government-provided benefits are not included. In the decade between the two expenditure surveys, the number of these third party-provided benefits increased.3 During this period, the percentage of full-time workers cov ered by plans that were fully employer-paid rose from 71 percent in 1971-72 to 73 percent in 1982.4 Thus, while medical care prices have risen at a rapid rate over the past decade, average consumer unit expenditures on medical care rose less rapidly due to employer- and governmentprovided benefits. Table 1 compares relative importances for the old series, based on the 1972-73 Consumer Expenditure Survey, up dated by price change through December 1986, to those for the current c p i , based on the 1982-84 Consumer Expendi ture Survey, updated by price change to December 1986. For some items, changes in relative importance between the old series and the current index arise not only from the previously mentioned changes in insurance coverage levels and distribution of premium payments between employer and employee, but also from definitional changes. Health insurance defined A number of definitional changes have been introduced in the medical care area; the most significant of these relate to the way health insurance premiums in the c p i are represented in the expenditure weights. While this change has no effect on the final index result and is mathematically equivalent to the former procedure, it is believed that the new structure provides a clearer picture of the role of health insurance in the c p i . Health insurance represents only expenditures by consumers for premiums— employer contributions are, of course, not included. Insurance premiums can be viewed as purchasing (1) the medical care for which benefits are paid, and (2) the services of the insurance carrier in administering the policy. This second element has been labeled retained earnings and refers to the operating cost and any profit of the insurance carrier. In the old series c p i , the entire insurance premium was classified as health insurance. However, within health in surance, it was broken into many subcategories for pric ing— one for each type of benefit paid and one for the retained earnings associated with each type of benefit. The price movement for a health insurance benefit stratum (for example, insurance-paid hospital rooms) was the same as the price movement for the corresponding medical item in the c pi (hospital rooms). The price movement for a retained earnings stratum was the combination of price change for the relevant medical care item and an estimate of changes in retained earnings as a proportion of benefits. In the revision, instead of using the price change for hospital rooms (or any other medical item) for both the hospital room out-ofpocket-paid index and the hospital-room-paid-by-insurance index, the expenditures for the two types of hospital room payments are combined in a single index. Thus, the expend 18 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis iture weight for each medical care item is the combination of the direct out-of-pocket expense for the item and the indirect expense for the item paid from consumer-purchased health insurance. The current c p i item labeled health insurance, which is defined as the portion of premium payments retained by the insurer in the form of operating expenses and profit, repre sents the weighting together of the retained earnings of the following carrier groupings:5 Percentage of health insurance as o f December 1986 Grouping Commercial C a rrie rs....................... Blue Cross/Blue S h ie ld ................... ....................... Health Maintenance O rganizations................................ Other (Medicare Part B and Medicare supplement policies) ................................ 26 Im provem ents in refining the health insurance com ponent were obtained through expanding the allocation of health insurers’ benefit payments.6 The following tabulation shows the allocation of health insurance benefit payments and per cent of total premium payments represented by retained earnings. B lu e C r o s s / C o m m e r c ia l M e d ic a r e B lu e S h ie ld C a r r ie r s 1 P art B 2 Hospital room .............. . . Ancillary services . . . . . . 27.5 25.2 21.6 19.9 — 11.0 17.9 Outpatient services . . . . . Physicians’ services . . . . . Other provider’s fees (physical therapy, psychiatry, and so forth) .................... Prescription drugs . . . . Eye c a r e ......................... Nursing home charges . Dental b en efits.............. Retained earnings . . . . 10.8 25.6 8.4 23.8 24.4 69.1 4.4 38.1 2.4 2. 9 .2 .2 1.8 3. 4 .8 1.9 — 6.5 7.9 4. 4 1.5 .3 5.2 9.3 .3 6.9 16.4 _ — ___ — ___ — H M O ’s 1 Also used to allocate Medicare supplement policies because no other data were available. 2 Medicare Part A (hospitalization) is not relevant to the cpi because it is an entitlement program paid through payroll deduction as opposed to insurance or a prepayment plan that consumers purchase by paying premi ums, that is, Medicare— Part B— Medical Insurance. N ote: Dashes indicate data are not available. Health insurance pricing Prior to the 1964 c pi revision, health insurance premiums were directly priced as a fixed amount of protection for the individual consumer by pricing the most widely held Blue Cross/Blue Shield family policy being sold to consumers. Using this method entailed a number of problems involving quality changes over time. Table 1. Relative importance of the medical care services component in the Consumer Price Index, U.S. city average, December 1986 [In percent] Item and g ro up Medical care se rvice s.......... Professional medical services ........................ Physicians’ services2 .. Dental services3 .......... Eye care4 ..................... Other professional medical services . . . Services by other medi cal professionals5 . . Unpriced items ............ Other medical care services ........................ Hospital and related s e rv ic e s ..................... Hospital rooms6 .......... Other inpatient hospital services7 ................... Outpatient services8 . . Other hospital and med ical care services . . . Unpriced items ............ Health in suran ce .............. Health insurance9 ............ A ll urban consum ers (cpi-u ) (i) Urban wage earners and clerical w orkers (CPI-W) (D A ll urban consum ers (cpi-u ) o ld series Urban wage earners and clerical w orke rs (CPI-W) o ld series 4.663 3.975 5.738 5.112 2.926 1.554 .866 .343 2.476 1.319 .773 .286 2.600 1.327 .950 2.468 1.310 .877 .164 .099 — .277 — — 1.516 .608 1.335 .580 .567 .337 .487 .265 .004 — .221 .003 — .163 — .252 _ _ .047 .029 3.138 2.644 .564 .262 .477 .222 — — .299 .003 2.574 .252 .002 2.168 — — 1 These relative importances reflect corrections to the originally published December 1986 values. See "Relative Importance of Components in the Consumer Price Index, 1987,” for further details. 2 Benefits provided by consumer-paid health insurance constitute 35.1 percent of the relative importance, c pi-u . 3 Benefits provided by consumer-paid health insurance constitute 8.7 percent of the relative importance, cpi-u . 4 Benefits provided by consumer-paid health insurance constitute 0.7 percent of the relative importance, cpi-u . 3 Benefits provided by consumer-paid health insurance constitute 24.7 percent of the relative importance, c pi-u . 6 Benefits provided by consumer-paid health insurance constitute 61.0 percent of the relative importance, cpi-u . 7 Benefits provided by consumer-paid health insurance constitute 62.6 percent of the relative importance, c pi-u . 8 Benefits provided by consumer-paid health insurance constitute 57.0 percent of the relative importance, c pi-u . 9 Only health insurance premiums paid by the consumer are included in the c p i . The health insurance relative importance includes only that portion of the premium that is retained by the insurance carrier for administrative cost and profit, 9.7 percent of the total premiums for the cpi-u . The portions of the premium that are paid as benefits have been assigned to the relevant medical care categories. No t e : Dashes indicate data are not available. Four basic factors affect changes in the cost of health insurance premiums: (1) increased or decreased medical care costs; (2) changes in health insurance provider adminis trative costs, surplus requirements, and profit (for commer cial carriers); (3) changes in the benefits covered by health insurance policies; and (4) utilization changes. Utilization is the frequency of claims made under a health insurance pol icy. For example, during an epidemic, the frequency of hospitalization and the number of patient-practitioner con tacts would likely go up. This increase in claims changes the policy utilization rate and might cause premium increases. Changes in the costs of covered services and in retained earnings rates are price changes that should be reflected in the index, whereas changes in the other two factors reflect https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis quality and quantity changes and should not be reflected in the cpi. Changes in coverage clearly affect the quality of the policy. Utilization changes are a redefinition of the risk covered by a policy, and thus are also a change in the quality of the policy that should not be reflected in the cpi. In pricing premiums directly, the Bureau found it impos sible to account for quality differences because of changes in the benefits provided by policies and in the utilization of benefits. These problems led the Bureau to switch to the current indirect method of pricing health insurance in the 1964 revision of the cpi. This indirect approach enables the Bureau to reflect in the cpi an estimate of the impact on premium levels of changes in the prices of medical care services covered by health insurance policies, as well as changes in the costs of administering the policies and main taining reserves and as appropriate, profits. Directly pricing policies would not enable bls to measure constant quality policy premium changes accurately, because the Bureau has not been able to develop the methodology to factor out of premium changes the impact of changed levels of coverage and utilization. Recent research has made some progress, but direct measurement remains elusive. (See appendix.) Price movement over time for the health insurance item in the cpi is determined by the following procedures. Retained earnings ratio. The Bureau obtains calendar year data for premium income, benefit payments, and re tained earnings for commercial carriers. For each year, the ratio of retained earnings to benefits is calculated, yielding a retained earnings ratio. Next, the latest year’s ratio is divided by the previous year’s ratio, and the percent change in the ratios is calculated. Finally, the percent change is allocated into 12 equal portions using the geometric mean, and the change is reflected over 1 year.7 This method en ables bls to measure the change in price caused by changing retention margins in monthly increments, which is prefer able to reflecting the entire annual change in only 1 month. A similar method is used for Blue Cross/Blue Shield; however, instead of annual data, bls obtains quarterly data and calculates a four-quarter moving average of these data. For example, the Bureau would calculate a retained earnings ratio using combined data for all four quarters of 1986 and divide it by the ratio calculated from the last quarter of 1985 combined with the first three quarters of 1986. The percent change between the former and latter ratios is allocated equally for the next 3 months using the geometric mean. Insurance price relatives. The total price movement for each health insurance stratum is estimated using the product of two relatives. The first relative is the change in the re tained earnings ratio mentioned previously. The second rel ative reflects the price change for each of the items to which benefits were separately allocated for Blue Cross/Blue Shield and commercial carriers. (See previous text tabula tion showing allocation of health insurance benefit pay19 MONTHLY LABOR REVIEW April 1988 • cpi Revision o f Medical Services Component ments.) For example, within Blue Cross/Blue Shield, the physician services category is moved by the product of the relatives for physicians’ services and Blue Cross/Blue Shield retained earnings. These two relatives are both re quired, because retained earnings levels change with both the change in benefits paid and the change in the unit cost of administering these benefits. This process yields a meas ure of price change for insurance of constant coverage and utilization. That is, changes in benefit coverage and utiliza tion levels will generally be offset by compensating pre mium changes, and thus, not significantly affect retention rates. Implicit in the process also is an assumption that the level of service from the individual carriers is strictly a function of the benefits paid. Other changes in the amount of service provided for policyholders, such as more conve nient claims handling, will affect the index, but the affects are probably small. Data changes. Since 1964, the Bureau had been using Health Care Financing Administration data provided by Blue Cross/Blue Shield and the Health Insurance Associa tion of America to compute the retained earnings adjustment for the health insurance component of the c p i . In recent years, the Health Care Financing Administration data for commercial carriers have shown inconsistencies, reflecting many revisions and changes in methodology. Both the com mercial carrier data and the Blue Cross/Blue Shield data obtained from the Health Care Financing Administration suffered from lengthy lags between the reference period and release of the data. These limitations on the data led b l s to investigate alternative data sources. After careful study, the Bureau determined that alterna tive data sources would be used. The Argus Health Chart, published by the National Underwriters, was an improved data source for commercial insurance carriers. Argus uses a large sample and has a shorter lag for data release than the Health Care Financing Administration. Also, the data used are those the insurance companies are legally required to report to the State insurance regulatory agencies as a legal requirement. In addition, b l s could improve the timeliness of the Blue Cross/Blue Shield retained earnings information by obtaining data directly from Blue Cross/Blue Shield on a quarterly basis, rather than obtaining it annually through the Health Care Financing Administration. Pricing medical services A sample of 91 urban areas was selected to represent all urban areas in the country. Within each of these areas, the Census Bureau conducts a Point of Purchase Survey for b l s , which identifies not only how much consumer units spend for each category of consumption, but also where they make the purchase. From this list, b l s selects a sample of medical service providers for each medical service item category. The process used by the Bureau in the selection of a unique service for direct pricing from a medical provider is 20 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis called disaggregation. To disaggregate, b l s field representa tives start with a general entry-level category, such as physi cians’ services, and successively narrow the definition stage by stage, using probability selection methods based on rev enues and volume information supplied by the respondents. This process yields a representative sample of the variety of services provided, and the resulting price index is, thus, an accurate reflection of price change for the entry-level cate gory. Continuing with the physician services’ example, 10 physician service categories have been identified for the c p i : general medical practice; pediatrics; obstetrics and gynecol ogy; allergy; surgery; psychiatry; orthopedics; cardiology; ear, nose, and throat; and other specialties. The category from which specific services are selected for pricing varies with the specialty of the physician. Within each of the 10 categories are a number of preselected services representa tive of the category: 15 services for general medical practice (8 types of visits and 7 procedures), and at least 6 for each of the remaining categories. Each service has an accompa nying definition that the field representative may adjust ac cording to a specific physician’s procedures. Within each physician’s office, the field representative selects, through disaggregation, the specific service to be priced on a continuing basis. To minimize the burden on the physicians of determining the actual sales or volume of their services, the field representative disaggregates through a ranking process. This ranking process is an ordering of eligible services provided by the physician from largest to smallest in terms of revenue. For example, at a general practitioner’s office, if we were selecting a quote from among the eight preselected types of visits, the selection process would be as follows: the physician ranks the eight types of visits by revenue; then, using a ranking value table and a random number table, the field representative selects the type of service to be priced. The following tabulation illustrates this process: C u m u la S e le c tio n v a lu e P e r fo r m R a n k in g T y p e o f v is it Office visit, b r ie f.............. Office visit, limited service ........................... Office visit, comprehen sive service Hospital visit, initial c a r e .................................. Hospital visit, subsequent c a r e .................................. Home visit, brief service ........................... Emergency department visit ................................ Consultation com prehensive.............. tiv e v is it v a lu e v a lu e Yes 30 30 Yes 20 50 Yes 15 65 Yes 10 75 Yes 10 85 Yes 10 95 Yes 5 100 (fro m r a n d o m n u m b e r ta b le ) No 96 Exhibit 1. Definition of published medical care service indexes Item Old series New series Medical care services Professional and hospital services; health in surance imputation Professional and hospital services; health insurance imputation and dispensing of eyeglasses and outpatient services at hospitals. Professional medical services (old title: Professional serv ices) Physicians; dentists; other professionals, such as optometrists, ophthalmologists, podiatrists, chiropractors. Physicians; dentists; other professionals, such as optometrists, ophthalmologists, opticians, psychologists, and therapists. Physicians’ services Includes all services by medical physicians in private practice, other than dental and eye care, that are billed by the physician. In cludes house, office, clinic, and hospital vis its by general practitioners, internists, os teopaths, and other specialists. Excludes podiatrists and other medical practitioners who are not m d ’s . Ophthalmologists are in cluded in other professional services. Includes all services by medical physi cians in private practice, other than dental and eye care, that are billed by the physician. Includes house, office, clinic, and hospital visits by general practitioners, internists, osteopaths, and other specialists. Excludes podiatrists and other medical practitioners who are not MD’s. Ophthalmologists are in cluded in Eye care. Dental services Includes dental services performed by dentists, oral or maxillofacial surgeons, orthodontists, periodontists, or other dental specialists in group or individual practice. Some of the specific services included are cleanings, ex tractions, fillings, orthodontic work, peri odontal treatment, bonding, dental sealants, treatment for temporomandibular joint prob lems, root canal therapy, dentures, bridges, crowns, and orthognathic surgery. Treatment can be provided in the office or in the hospital. Includes dental services performed by dentists, oral or maxillofacial surgeons, orthodontists, periodontists, or other dental specialists in group or individual practice. Some of the specific services included are cleanings, extractions, fill ings, orthodontic work, periodontal treatment, bonding, dental sealants, treatment for temporomandibular joint problems, root canal therapy, dentures, bridges, crowns and orthognathic surgery. Treatment can be provided in the office or in the hospital. Other professional services All services performed by other medical profes sionals, such as podiatrists, chiropractors, psychologists; eye care provided by optome trists and ophthalmologists. Discontinued. Eye care New index Services provided by optometrists, opthalmologists, and opticians. Includes dis pensing of eyeglasses and surgical pro cedures performed by ophthalmologists in or out of the office. Services by other medical pro fessionals New index Includes services performed by other pro fessionals such as, psychologists, chiro practors, therapists, and nurse practi tioners in or out of the office. Other medical care services Hospital services, nursing homes, and health in surance imputation. Discontinued. Hospital and related medical services (old title: Hospital and other medical services) Hospital services that include hospital room and board, inpatient services, emergency room visits, and nursing home care. Hospital services that include hospital room and board, inpatient services, and outpatient services that include emer gency room, and nursing home care. Hospital room Room and board for any type of hospital room, such as private, semiprivate, routine nursery, Room and board for any type of hospital room, such as private, semiprivate, rou- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 21 MONTHLY LABOR REVIEW Exhibit 1. April 1988 • cpi Revision o f Medical Services Component Continued— Definition of published medical care service indexes Item Old series New series ward, intensive care, or coronary care that is billed by the hospital. tine nursery, ward, intensive care, or coronary care that is billed by the hos pital. Other hospital and medical care services Inpatient hospital services such as laboratory tests, radiology, operating room, pharmacy, and emergency room that are billed by the hospital and nursing home care. Discontinued. Other inpatient services New index Hospital services for inpatients, such as pharmacy, laboratory tests, radiology, and operating room that are billed by the hospital and nursing home care. Outpatient services New index Hospital services for outpatients, such as laboratory tests, radiology, short stay units, ambulatory surgery, physical therapy, and emergency room that are billed by the hospital. “Consultation comprehensive” is selected, because its cu mulative ranked value (100) is the smallest number greater than or equal to the selection value (96), the number selected from a table of random numbers. If ranking of services is not possible, then equal probability is used to select the service for pricing. The following is an example of service selection for a hospital price quotation. In each hospital, fees for hospital rooms and impatient and outpatient ancillary services are priced. The field representative determines, through proba bility methods, the category of inpatient ancillary service as well as the specific services to be priced for each hospital. For instance, to determine the specific hospital room serv ices that will be priced over time, the field representative obtains information about fees for standard rooms (semipri vate, ward, nursery, and so on) and special care units (inten sive care, coronary care, and so on) from the hospital ad ministration. Using this information and probability tables, the representative may select semiprivate room. The field representative then further defines the service by identifying the type of patient in the room, the bath facilities available, the room location, and other services included with the room. Other inpatient hospital services are similarly selected. For example, preliminary disaggregation may select, first, the broad category “radiology” (x-ray); then, the more specific category, “diagnostic radiology.” The next stage of disaggregation may select “skull examination” from a list of specific types of diagnostic radiology. One more disaggre gation step will select the type of skull examination from a list provided by the respondent indicating the four or five most frequently performed tests. Finally, the field represen tative notes the additional factors, such as the length of treatment and the number of personnel required, to render the final definition of the service to be priced. 22 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Pricing improvements Prior to the 1987 revision, the collected medical care service prices represented the paying patient rate for profes sional services and the published charges for hospitals. However, because professional and hospital-related services were used to move the index weights for both out-of-pocket expenses not covered by insurance and insurance benefit payments, the Bureau decided that it would be appropriate to determine if alternate fees were available for such priced services. These alternative fees include private insurance, Blue Cross/Blue Shield, Medicare, and preferred provider organizations. To determine the availability of alternative fees, the Bureau conducted a study during 1985 in eight pricing areas to identify the prevalence of medical care service providers charging different rates to patients covered by health insurance. Where alternative rates existed, the study determined if the rate varied with the insurance provider, and where it did, it was determined if such rates would be readily available to the Bureau each price collec tion month. Separate Medicaid or other public assistance rates were not considered eligible because they are govern ment subsidized and apply to individuals and households who must meet certain income requirements. Physicians were the only respondents to the survey that reported avail able alternative fees for selected services, with enough fre quency to make selection of payment basis part of the disag gregation process. During 1987, b l s will again be surveying hospitals and dentists to identify the availability of multiple rates for the specific services selected for pricing. If the results warrant, b l s will add selection of payment basis to the initiation procedures for hospitals, dentists, or both dur ing 1988. To ensure that the c p i properly reflects the marketplace on a continuing basis, a Point of Purchase Survey is conducted in one-fifth of the cpi’ s 91 pricing areas each year. From these surveys, a new outlet sample is selected and new unique items identified for pricing. Thus, over a 5-year period, the entire cpi outlet sample and unique item sample are updated. Restructuring published indexes As part of the cpi revision, bls created three new indexes by separating previously combined items, for example, eye care from other professional services, and inpatient and outpatient treatment from other hospital and medical care services. In exhibit 1, definitions of the indexes in the old and revised cpi are given and the new and discontinued series are indicated. A separate health insurance index is not pub lished, as it is not directly priced and the data are available only with a significant lag. Exhibit 1 reflects a restructuring that provides unique categories for “professional services” and “hospital and re lated services.” Eye care (including purchase of eyeglasses and contact lenses) has been combined with physicians’ services, dental services, and other professional services to form the “professional medical services” index. In the for mer cpi, a distinction was made between the purchase price of eyeglasses and contact lenses (commodities), and the charge associated with fitting eyeglasses and contact lenses for the consumer (services). It has grown increasingly more difficult to separate provider charges into these components so, in the revised cpi, both eye care commodities and serv ices are included in a single index in the medical care service component. Fees for laboratory tests and x-rays have been moved from professional services and, along with emer gency room charges, make up the outpatient services cate gory. The following tabulation contains the number of current outlets and price quotes for each of the published medical care services. Service Physicians’ services......................... Dental services ................................ Eye c a r e ............................................. Other medical professionals ........... Hospital rooms ................................ Inpatient services.............................. Outpatient services ......................... Outlets 536 295 401 382 339 323 317 Quotes 1,099 635 402 392 562 903 354 Quality changes One of the most difficult conceptual problems faced in compiling the cpi is to identify accurately and factor out of price measurement any changes in the quality of priced items. The Bureau attempts to identify the quality level of an item by including all of the relevant quality-determining attributes in the description of each unique item priced. To determine if a quality change has occurred, the Bureau ob tains the current specifications for the item, and compares https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis them to the previous specifications. When any of these specifications change, a quality improvement or deteriora tion may have occurred. As a further aid in identifyng whether a quality change may have been introduced, the field representative asks each respondent to identify the specific cause of any significant price change. The respondents may identify the change as (1) a pure price change (2) a change in the characteristics of the cur rently priced procedure/service, or (3) a combination of the two. When pricing physicians’ services, for example, if the description of the item being priced is a limited office visit for treatment of a sore throat at $35, and the physician indicates that a rate increase has taken place in the office visit to $40 and now will also include a throat culture at $15, making the total cost $55, the following action is taken. The addition of the throat culture would not be reflected as a price increase, because it was not in the described service and would be considered a substitution. The price increase in the office visit, $35 to $40, would be shown in the current month’s index. For subsequent pricing comparison, the new service would include the office visit and throat culture. Another example where adjustments can be made for quality differences is the change in a hospital’s average length of stay. When pricing hospital rooms, the hospital reports the price of the selected room for 1 day. The hospital respondent also indicates any additional fees that would apply to the selected room/patient type. These fees may be per day (for example, for use of a tv or telephone), or per admission (for example, for an admission kit or admitting charge). The hospital also provides an average length of stay for the type of patient selected or the hospital average. The length of stay is used to prorate the per-admission charges and arrive at an average price per day. The price per day for the cpi, then, includes the base room rate, per day charges, and prorated charges. When the length of stay changes, the total price will change, but the cpi will not reflect this as a price change. An adjustment is made to reflect only the pure price change. The following is an example of a price change and a change in length of stay that resulted in an increase of 8 percent being reflected in the index. February 1987 April 1987 Base room rate ..................... Per day charge for tv ........... Length of stay ....................... Per-admission, charge for admission kit ..................... Prorated charge ..................... $210.00 3.00 5 days $225.00 3.00 4 days $25.00 5.00 $35.00 8.75 Total price .............................. $218.00 $236.75 The February 1987 adjusted price for use in calculating the final change between February and April, based on a 4-day length of stay is $219.25 ($210 base room rate, $3.00 TV charge, and $6.25 prorated admission charge for a 4-day stay). 23 MONTHLY LABOR REVIEW April 1988 • cpi Revision of Medical Services Component Change reflected in the index: / April 1987 price \ \ February 1987 price/ - 1 X 100 = Percent change (iffi) ■1x100=8percent Another situation involves hospital inpatient pharmacy prices. A specific medication and dose is selected for pricing with the brand (manufacturer) or generic designation indi cated. Although there is an ongoing discussion in the med ical community as to what, if any, quality difference exists between branded and generic medications, if the hospital switches from brand to generic or vice versa, the change is reflected in the index. Hospitals normally purchase their drugs in bulk supply negotiating the best possible price, and shifts between brands and to or from generic occur with some frequency in our sample. In the hospital environment, the patient receives the prescribed drug from the pharmacy, therefore, inventory prices are compared, regardless of manufacturer. Potentially, some quality changes may be counted as price changes. Items that are not accounted for in the de scription of the item being priced or that the respondent does not know about, such as hospital room modifications, changes in the number and type of nurses that minister to the patient, or the availability of new equipment, are all likely to contribute to determining the price level of the room service priced; these changes are normally treated as price changes because the Bureau either is not aware of the change or has no method available to deal with the change. For instance, it has not been possible to develop a descrip tion of a hospital semiprivate room that not only includes the specific room characteristics, but also accounts for all of the hospital plant, equipment, and staff size factors that con tribute to the cost of that semiprivate room. Thus, b l s is able to factor out from price change the inclusion of unlimited local telephone usage should it now be included in the price of the room, but the Bureau is not normally able to factor out the effect on the room charge of a change in the nurse to patient ratio. Also, improved technologies and procedures can lead to quality changes that cannot necessarily be measured by the Bureau. For instance, many physicians have switched from using plaster casts for broken bones to a variety of more comfortable, versatile casts. Inflatable casts are lightweight, removable, and easily refitted to the limb when swelling subsides. Cloth casts are lightweight, removable, and breathable. The new fiberglass casts are much lighter than plaster and can be immersed in water, so that the patient can now bathe while wearing a cast. New advances in the devel opment of porous materials in the manufacturing of pros thetic implants, as in hip replacement surgery, allow the bone to grow around the prosthesis. This is not the case with the nonporous materials that have been commonly used in hip replacement prosthetic implants. Many doctors believe this new procedure offers a great improvement in the results of hip replacement surgery, the outcome being a stronger hip joint than when the nonporous materials are used. These are two examples of improved technologies and procedures that can result in quality changes that currently are hard to identify and adjust for in the c p i . Not only is it difficult to identify the change when it occurs, but at present, no method for assessing the economic value of the change is available. Summary This revision, as in the past, enabled the Bureau to update medical care service expenditure weights in the c p i , includ ing a more complete allocation of health insurance premi ums. Instead of keeping the portion of premiums that go to benefits under health insurance, the expenditure weight for each benefit category has been added to the appropriate out-of-pocket expense. The unpublished health insurance item represents only the retained earnings portion of premi ums paid by households. The specific item categories in cluded in medical care services have also been updated and expanded. A study conducted during the developmental phase of the revision indicated that the Bureau should ex pand the eligible priced rates for physicians in the c p i to include not only the “self-pay” rate, but also other categories of payment as well. Another study indicated that the direct pricing of health insurance is not feasible because of the difficulty of factoring out from premium changes the effect of utilization levels and modified coverage. In pricing med ical care service items, as with other item categories in the c p i , b l s attempts to exclude from price movement the effect of quality changes. However, some quality changes are difficult to assess or are not readily identified, for example, a change in the ratio of nurses to patients, and such changes may be reflected as part of the price change movement in the c p i. n -F O O T N O T E S 1 For additional information on the revised c p i , see Charles Mason and Clifford Butler, “New basket of goods and services being priced in revised c p i ,” M o n th ly L a b o r R e v ie w , January 1987, pp. 3 -2 2 . and insurance policies. In each of the subsequent four interviews, expendi ture data are collected for the previous 3 months on all varieties o f major consumer expenses. 2 In the interview survey, the respondent is visited in each o f five consec utive quarters. The purpose of the first interview is to collect information on the characteristics of the consumer unit and to establish inventories of items held by the respondent— properties, vehicles, major durable goods, The diary survey consists of 2 consecutive week-long records of pur chases. The goal is to record every purchase made during the 2-week period by any member of the consumer unit, including spouse or children. The diary is used primarily to capture information on grocery store purchases, 24 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis gasoline, meals, snacks and beverages, many apparel items, and other small, routine purchases. Spending out of town is not included in the diary survey. In cases where the same expenditures appear in both surveys, the data are evaluated to determine which source should be used. 3 Robert M. Frumkin, “Health insurance trends in cost control and cov erage,” M o n th ly L a b o r R e v i e w , September 1986, pp. 3 -8 . 4 Frumkin, “Health insurance trends.” 5 The 1982-84 Consumer Expenditure Survey weights updated by the changes in retained earnings as reflected in the cpi between 1983 and December 1986. The retained earnings changes calculated for Commercial Carriers are also used for Health Maintenance Organizations, as no Health Maintenance Organization data currently are available. The retained earn ings changes calculated for Blue Cross/Blue Shield are also used for the “Other” category, as currently b ls has no data to calculate combined retained earnings changes for Medicare supplement policies. 6 Health Care Financing Administration-Insurance Benefit Data, Se lected Health Maintenance Organizations, Blue Cross/Blue Shield, se- lected plans and Selected Commercial Carriers. 7 A hypothetical example of the calculation of the change in retained earnings for commercial carriers: Year Income Benefits Retentions Retentions— Benefits Ratio 1 2 $100,000 108,000 $ 94,000 100,000 $6,000 8,000 .063830 .080000 Year 2 adjustment for change in retentions: Year 2 Ratio .080000 1.253329 relative of change, or 25.33 per.063830 cent, which is the annual increase in retentions for year 2. (b) Spreading this annual change equally over 12 months is done as fol lows: (a) Year 1 Ratio I 2V I . 253329 = 1.018995 = 1.9 percent per month. APPENDIX: Test of direct pricing of health insurance policies During 1984 and 1985, another effort was made to test the feasibility of directly pricing health insurance policies. Underlying this direct estimation technique is the basic as sumption that health insurance premium changes that are to be reflected in the c p i should include only those items re lated to changes in the cost of medical care services covered by health insurance policies, and related to changes in the health insurance provider’s administrative costs, surplus re quirements, and profit needs (of commercial carriers). Changes in premiums related to changes in the utilization of health insurance benefits or changes in the benefit packages themselves have to be factored out of this measure, because they are considered to be changes in the quality of the policies being priced. An accurate index reflecting only changes in the cost of covered medical care services and changes in administrative costs, surplus requirements, and profit needs of health insurance companies will therefore require the pricing of constant quality policies (over time). First, a data collection document (checklist) was created to describe accurately the numerous variable qualities and characteristics of the many health insurance policies. The checklist is used to rate, classify, and differentiate between the various health insurance policies that were included for test purposes. Second, health insurance pricing schedules of insurance company policies available from a 1976-77 test pricing program were examined, and a sample of potential respond ents was picked to be priced. The sample was chosen to represent commercial carriers and Blue Cross/Blue Shield, individual and group plans, single and family plans, and to exhibit different coverages, qualities, price ranges, geo graphical areas, and so on. Next, sample respondents were contacted to collect 1984 and earlier pricing and benefit package information on these (or other similar) policies that were initiated in the mid-1970’s. From this back-pricing information, an experimental health insurance index was constructed for the period 1977-84. About 70 health insurance companies were contacted in the survey. Of the 22 companies that provided data, 16 responses representing 95 price quotes were deemed com https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis plete. The poor response rate principally reflects the low number of the 1976-77 initiated policies that were still in force when the carriers were contacted again in 1984. Com pleted responses were described on the checklist along with the annual price trend of the rates they charged to sub scribers. The reported health insurance premiums used in this survey were for policies purchased by consumers or policies purchased at work that reflect combined employer/ employee contributions. The responses consisted of a fairly representative geographic distribution of policies. Utilization data, one aspect of quality change, were also requested from insurance company respondents, but only five respondents were willing or able to provide limited utilization data. At this time, appropriate data on utilization and a methodology to account for utilization (quality) changes in the direct pricing of health insurance are not available, and thus are not accounted for in the experimental index. This lack of data had serious effects on the accept ability of the direct pricing approach. Quality changes stemming from changes in benefit pack ages were handled in two ways. In some cases, insurance companies indicated the effect on premiums of a given ben efit change, allowing the Bureau to adjust these policies for quality changes. In those cases where the impact on premi ums of benefit changes was unavailable, comparisons for unadjusted benefit changes were not made. The experimen tal index is based strictly on the premium changes of policies that did not change coverage plus those for which premium adjustments could be made for changes in coverage. Com parison of the results of the experimental direct price index for health insurance with the indirect method for the same period is shown in the following tabulation (December 1977=100). December Experimental direct pricing 1977 ........................... 1978 ........................... 1979 ........................... 100.0 116.8 128.7 Current indirect method 100.0 110.5 123.6 25 MONTHLY LABOR REVIEW 1980 1981 1982 1983 ......................... ......................... ......................... .............. 164.0 174.4 211.6 246.6 April 1988 • cpi Revision o f Medical Services Component 133.7 152.9 177.2 183.9 As is evident in the comparison, the direct pricing method indicates a faster rate of increase than the indirect method currently used in the c p i . The differences between the in dexes resulting from the two pricing methods may be due to a number of possible causes. Each method measures some what different things. The indirect method is based on price changes in current medical care commodities and services and previous years retained earnings figures. The experimental direct pricing method looks at premiums based on current figures, and even projections by carriers for medical care costs and uti lization in coming years. Some of the large price jumps in 26 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis the direct pricing index between 1979-80 and between 1981-82 were attributed to shifts by many of the healthiest subscribers out of their current plans into Health Mainte nance Organizations or lower-cost/higher-deductible plans. It has been suggested by some insurers that a disproportion ate number of those who made the shift were the young and healthy consumers who use less medical care and, hence, make fewer claims against health insurers or Health Mainte nance Organizations. This left the affected plans with an older, less healthy pool of subscribers who made a higher level of claims. The resulting increased costs for the health insurers may have caused some of the sharp increases in the direct pricing index. This type of utilization change is ex actly the type of quality change that should not be included in the index, and the inability to obtain data on the premium impact of these utilization changes is the chief roadblock to developing a directly priced health insurance index. No ‘rules of the game’ When Congress passed the National Labor Relations Act in 1935, there was some expectation that labor and management would come to an implicit understanding on the “rules of the game” in labor relations and that the regulatory apparatus set up in the act would seldom be needed. Fifty years later, the most striking feature of U.S. labor relations policy is the sheer volume of regulatory activity. The number of unfair labor practice charges filed with the National Labor Relations Board ( n l r b ) was 6,807 in 1938, the year after the Supreme Court upheld the act’s constitutionality, and in the postwar period the number rose from 5,809 in 1950 to 44,063 in 1980. — R o b e r t J. F l a n a g a n Labor Relations and the Litigation Explosion (Washington, The Brookings Institution, 1987), p. 24. Semiconductor productivity gains linked to multiple innovations High productivity gains, especially in the 1970’s, stemmed mainly from rapid improvements in product design and manufacturing techniques and processes M ark S c o t t S ie l in g Output per employee hour in the semiconductor industry rose at an average annual rate of 13.1 percent between 1972 and 1986— a much higher rate than for all manufacturing, 2.4 percent.1 Output increased 21 percent a year and em ployee hours, 6.9 percent. The long-term trend in productiv ity masks two distinct periods during which annual rates changed markedly. The rates moved as follows: Output per employee hour 1972-86 ............................ 13.1 1972-81 ....................... 16.6 1981-86 ............................... 4.1 Output 21.0 25.4 9.5 Employee hours 6.9 7.5 5.2 Between 1972 and 1981, average annual output growth (25.4 percent) was more than three times higher than employee-hour growth. The major factor behind the strong output performance was the continual innovation in inte grated circuits combined with the industry’s adroitness in rapidly turning such innovations into low-cost, massproduced devices. In an environment of rapidly evolving products and low unit prices, myriad new uses were found for semiconductor devices and most existing electronic products, such as computers and military hardware, were substantially upgraded. These factors were also present during the first half of the 1980’s, but gains in output per employee hour were less than one-quarter of those registered in the 1970’s— 4.1 as against 16.6 percent per year. During the 1981-86 period, output Mark Scott Sieling is an economist in the Division of Industry Productivity Studies, Bureau o f Labor Statistics. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis growth was dampened by increasing Japanese competition and a series of slowdowns in computer manufacturing (a major user of semiconductor devices). Increases in average employee hours also lessened during the early 1980’s— from 7.5 percent a year in 1972-81 to 5.2 percent in 1981— 86. The slowdown mainly reflected less robust output growth. While circuits became more intricate, they required more employee hours to design and produce; this tendency was partially offset by the increasing use of computers in both design and manufacturing processes and by more auto mated production techniques. Output and demand. The semiconductor industry manu factures two major types of products— discrete devices, such as transistors and diodes, which perform only one electronic function; and integrated circuits (chips) which are arrays of discrete devices imprinted on small pieces of sili con. Increases in industry output since the late 1960’s stem, to a large degree, from rapid growth in the production of integrated circuits. In 1966, integrated circuits accounted for about one-eighth of all semiconductor production, for over one-half in 1972, and for almost four-fifths in 1980. During the same period, their current dollar value leaped from just over $100 million to about $6.5 billion. The earliest integrated circuits, developed in the late 1950’s, contained fewer than 10 discrete devices. By the late 1960’s, chip capacity had increased a hundredfold. Since then, chip capacity has doubled about every 2 years; in 1987, a chip the size of a postage stamp might hold up to 16 million separate elements.2 While this increase in capac27 MONTHLY LABOR REVIEW April 1988 • Productivity Gains in the Semiconductor Industry ity would probably, by itself, have promoted strong output and demand growth, its effects were intensified by the in dustry’s ability to supply large numbers of chips and by declining unit prices. Prior to the late 1960’s, the semiconductor industry fo cused on manufacturing customized integrated circuits for computer manufacturers and the military.3 Limited produc tion runs meant that development, overhead, and labor costs were spread over a small number of chips, and unit prices tended to be relatively high. In addition, chips designed for one purpose could not be readily adapted for another. With the introduction of the first high-capacity standardized memory chip in the late 1960’s, emphasis was increasingly placed on both enlarging chip capacity and quickly attain ing mass production status. Peak production (in terms of hundreds of millions of chips) typically occurred about 3 years after the first prototypes of a new chip generation were introduced. High production levels then tapered off as the next generation of chips entered the mass production stage.4 When a new generation of integrated circuits was intro duced, individual unit prices were much higher than for the previous generation. As firms gained manufacturing experi ence, unit prices typically fell by 30 percent with each doubling of production.5 Not only were unit prices eventu ally lower than the previous generation’s, but, because the improved devices contained more elements, the cost per electronic function also declined. For example, the cost for a bit of memory (a single piece of information such as a letter or digit) dropped from just under 1 cent in 1973 to around one-thousandth of a cent in 1986.6 During the 1970’s, the combination of declining unit prices, higher capacity devices, and standardized products led to explosive growth in demand for integrated circuits because of substantial upgrading of existing computer hard ware and military equipment. Demand was further spurred by the development of new products, such as video games and watches, and the replacement of mechanical controls by solid state electronic devices in a wide variety of products ranging from refrigerators and thermostats to automobiles and industrial equipment. In 1968, 50 percent of total semi conductor output was used in military applications, com puter manufacturing absorbed 30 percent, and consumer and industrial goods, 20 percent.7 By 1979, military use ac counted for only 10 percent of total semiconductor output; computers, 30 percent; and industrial and consumer goods, 60 percent. While improved circuits were still being introduced and unit prices continued to decline during the first half of the 1980’s, a slackening of growth in computer manufacturing and increased foreign competition retarded demand for and output of U.S. manufactured semiconductor devices. In the 1970’s, for example, U.S. companies supplied about 60 percent of world demand for semiconductor devices; by 1985, their share had shrunk to 45 percent, while the market 28 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis share held by Japanese firms had increased from 25 percent to 40 percent.8 Within these long-term trends, year-to-year movements in output and employee hours also reflected general business activity but were usually more volatile— as illustrated by the almost 30-percent output decline in 1975 and the 60-percent increase in 1976. (See table 1.) Such large year-to-year changes stem from a number of causes. When the demand for electronic equipment and products declines, manufactur ers reduce their purchases of semiconductor devices to a much larger extent than they reduce production of finished electronic goods, resulting in inventory depletion.9 As de mand recovers, they often double or triple their orders for semiconductors to ensure delivery and rebuild inventories. Such rebounds occasionally coincide with the commercial introduction of a new chip generation— as in 1976, when 4K memory chips (containing 4,000 memory bits) first be came available in large quantities and at low unit prices. When that happens, electronic goods manufacturers not only increase their orders for older generation chips but also place large orders for improved chips.10 Yield ratios. The basic building block of integrated cir cuits is a flat wafer (disc) of silicon on which large numbers of individual discrete devices, such as transistors, are im printed. A key factor in increasing output per employee hour is the ability to increase the number of usable devices on a wafer. The same amounts of material and production worker labor used to produce a wafer yielding a small number of good chips are needed to produce a wafer yielding a larger number of good chips. As the yield of good chips im proves— typically from an initial low of 5 percent or less to around 60-70 percent— unit prices decline because output dramatically increases.11 Table 1. Productivity and related indexes for the semi conductor industry, 1972-1986 [1977=100] Year A ll O u tp u t p er e m p lo y e e h o u r O u tp u t e m p lo y e e E m p lo y e e s h o u rs 1972 1973 1974 1975 1976 1977 1978 1979 ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... 46.3 53.6 64.1 56.0 82.5 100.0 120.5 138.1 36.4 51.0 63.5 45.8 72.4 100.0 139.0 190.4 78.7 95.2 99.0 81.8 87.8 100.0 115.4 137.9 78.1 94.8 100.5 82.5 88.0 100.0 114.5 136.3 1980 1981 1982 1983 1984 1985 1986 ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... 149.4 171.6 197.9 211.5 229.2 206.1 218.4 226.1 260.5 301.2 339.9 432.5 392.3 399.4 151.3 151.8 152.2 160.7 188.7 190.3 182.9 151.5 151.7 153.0 159.3 185.6 189.4 181.4 A v e ra g e a n n u a l ra te s o f c h a n g e 1972-81 1981-86 ............................... ............................... 16.6 4.1 25.4 9.5 7.5 5.2 7.5 4.9 Achieving high yield ratios, however, is not an easy task and depends more on the refining of manufacturing proc esses than on the gaining of experience by production work ers (let alone on differences in material inputs).12 Attaining acceptable yield ratios using standard production processes requires coordinating and adjusting hundreds of separate manufacturing stages, some of which involve new machin ery and techniques, because processes used in research and development are not directly transferable to regular produc tion lines.13 This effort initially requires large amounts of skilled engineering and technical employee hours, but as yield ratios improve, these requirements ease and produc tion labor inputs per good chip also decline.14 Although this process is repeated for each new generation of integrated circuits, recent advances in computer-assisted and computer-integrated manufacturing techniques have lessened the time required to achieve acceptable yield ratios as well as the cost associated with small runs of customized chips.15 Employment and hours. Between 1972 and 1986, em ployment in the semiconductor industry more than doubled, from 115,000 to 268,000 workers. Overall, employment increased at an average annual rate of 6.8 percent during this period, compared with a 0.2-percent decline for all manu facturing industries combined. Average weekly hours of semiconductor production workers, however, were similar to those of their counterparts in all manufacturing— about 40 hours per week. Overtime hours for both groups also were almost identical, averaging about 3 hours per week. Paralleling annual average rates of change in employee hours, semiconductor employment gains were also higher in the 1972-81 period (7.5 percent) than in the 1981-86 period (4.9 percent), although increasing circuit complexity neces sitated more design work and more complex manufacturing techniques—just as circuit density doubles every 2 years, it has also been estimated that design costs increase almost as rapidly.16 This trend was mitigated, however, by the in creasing use of computer-aided design and computerintegrated manufacturing systems as well as the introduction of more highly automated production machinery and process.17 During the 1972-86 period, «the rate of increase in the number of nonproduction workers (8.7 percent a year) was almost twice as large as the rate for production workers (4.6 percent). This disparity partially reflected the rapid pace of product innovation within the industry. Regardless of yearto-year fluctuations in demand and output, semiconductor firms maintain large research and development staffs of engineers and computer specialists designing the next gener ation of integrated circuits. Year-to-year changes in produc tion worker employment more closely follow yearly changes in output. In 1985, for example, output declined by 9.3 percent and production worker employment fell by 8.1 percent. Nonproduction employment, however, increased by almost 10 percent. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Occupational structure Considering the highly technical nature of semiconductor devices and the emphasis placed on rapid innovation, it is not surprising that the industry’s work force mainly consists of engineers, computer programmers, and other technical workers. With the increasing complexity of chips and manfacturing processes, the proportion of employees classified as nonproduction workers has also increased— from around 40 percent in the 1960’s to 50 percent in the 1970’s and 60 percent in the early 1980’s. Production workers accounted for only two-fifths of the total work force during the 1980’s— a much lower proportion than for manufacturing, in which about two-thirds of all employees are production workers. Semiconductor assemblers, testers, and inspectors represent the largest production occupations. Predominantly consisting of women, these occupations make up about onehalf of total production employment.18 Just as increasing product complexity has changed the broad occupational structure of the semiconductor industry, it has also affected the composition of the production work force. Each succeeding product generation has called for more sophisticated manufacturing techniques and equip ment, which, while obviating the need for low-skilled man ual production workers, has raised the demand for higher skilled technicians and machine operators.19 This shift is also reflected in average production worker earnings. As more of the production work force consisted of relatively high-paid technicians and machine operators, average pro duction worker earnings rose from 10 percent below the all-manufacturing average in 1972 to parity in 1985. Industry structure Although the number of semiconductor firms more than doubled between 1972 and 1985— from 325 to 766— the industry remained highly concentrated. Establishments em ploying 1,000 workers or more have continually accounted for about two-thirds of total employment and industry ship ments, even through they represent only about 5 percent of the total number of establishments in the industry. The rel atively low proportion of employment and shipments ac counted for by smaller sized establishments, however, be lies their importance. Traditionally, these firms have developed a disproportionate number of product improve ments and manufacturing innovations.20 The industry relies mainly on outside suppliers to provide it with the basic materials used to produce semiconductors, such as silicon crystals, metals, chemicals, ceramics, and plastics. The highly specialized machinery used in manufac turing integrated circuits is mainly supplied by outside firms, which in many instances, have initiated innovations in materials or machinery which subsequently led to im provements in semiconductor products.21 In recent years there has been increasing collaboration between semicon ductor manufacturers and their customers as the industry 29 MONTHLY LABOR REVIEW April 1988 • Productivity Gains in the Semiconductor Industry shifted back towards producing semicustomized and cus tomized chips.22 The early 1980’s witnessed an increase in the number of firms specializing in specific areas of semiconductor pro duction, such as designing integrated circuits or stages of the manufacturing process.23 Given the large increase in the cost of an average semiconductor plant— from roughly $10 million in 1975 to $100 million in 1985— very few complete manufacturing facilities have been built in recent years.24 Large semiconductor companies, however, typically con struct complete facilities encompassing all stages of semi conductor manufacturing, from design to testing. California accounts for about one-third of total semicon ductor employment and shipments. Other major centers are located in Arizona, New York, Massachusetts, and Texas. Capital expenditures. Between 1972 and 1985, semicon ductor capital expenditures grew at an average annual rate of 22.5 percent or about 7 times faster than the rate for all manufacturing combined (3.3 percent per year). In most years, about four-fifths of total capital investment is spent for new machinery rather than for buildings. The torrid pace of capital expenditure mainly reflects the rapid obsolescence of production machinery— the average useful life of equip ment in the industry is between 3 and 5 years. Each chip generation typically requires new production equipment or major upgrading of existing equipment to cope with the smaller element sizes of the improved circuits.25 Total capital expenditures of the semiconductor industry rose in constant dollar terms26 from $453 million in 1972 to $2,832 million in 1985. Constant-dollar expenditures per worker have also been consistently higher than for all man ufacturing. In 1985, for example, they ran 3^ times higher for semiconductor employees ($14,872) than for all manu facturing employees ($4,429). Despite high levels of capital investments, the semicon ductor industry is still one of the most highly labor intensive of any manufacturing industry, mainly attributable to the complexity of the batch production process employed by the industry and the production adjustments needed to produce new generations of chips.27 Semiconductor capital expenditures, of course, varied from year to year, mainly reflecting changing business con ditions, product life cycles, and industry expectations. Be tween 1972 and 1985, more than half of the year-to-year changes fluctuated by 33 percent or more. Research and development. The semiconductor industry is one of the most research and development oriented sectors in U.S. manufacturing. In 1977, for example, the industry spent 24.9 percent of sales on research and development, compared with 3.1 percent of sales for all manufacturing industries combined.28 The relatively high output and pro ductivity gains registered by the semiconductor industry reflect the success of these research and development efforts 30 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis because product improvements have spurred demand, and manufacturing innovations largely stem from in-house re search and development efforts.29 Manufacturing techniques and technologies There are four major stages in semiconductor produc tion— design, imprinting, assembling, and testing. Given the close-knit nature of the semiconductor manufacturing process, however, the separate contributions of improve ments in each of these areas to overall industry productivity cannot be measured precisely. In the design phase, engineers draw a series of integrated circuit blueprints. Because the ability to design products quickly both spurs the demand for new generations of semi conductors and makes semicustomized chips more econom ical,30 the industry has continually increased its use of computer-assisted design and engineering systems. Produc tivity advances stemming from the use of these systems may be either constrained or hastened by changes in the manufac turing process. On the one hand, designs may have to be substantially modified because of manufacturing limitations while, on the other hand, advances in manufacturing tech niques or materials may compel major changes in design parameters.31 After the design phase, devices are manufactured by im printing silicon wafers with layers of circuitry. First, blueprints are reduced to the actual size of the device and turned into stencils. A stepping machine then duplicates a single stencil repeatedly until a master mask consisting of 400 to 600 identical chip stencils is created.32 Next, a vari ation of photolithography is used to transfer these mask patterns onto silicon wafers. A wafer is first coated with a thin film of electrically conductive material and then with a layer of photosensitive material that hardens on contact with light. Shining light through the master stencil onto the wafer creates patterns in this top layer. Various solvents are then used to dissolve the soft parts, leaving a tracery of conduc tive material. This process is repeated again and again, eventually creating hundreds of identical chips on a single silicon wafer. The basic manufacturing technique used to imprint wafers is batch processing. A group of silicon wafers is moved through a series of work stations. At each station, the wafers undergo specific imprinting processes before they are moved to the next station. With hundreds of processing stations involved, semiconductor manufacturing is one of the most complex production processes ever adapted to mass production.33 As chip complexity and density have increased over the years— with the size of electrical pathways shrinking to the tens of thousandths of a human hair’s width— imprinting machinery has also become more complex. Today’s equip ment employs x-rays, lasers, and electronic beams in addi tion to the traditional photolithography techniques. Each generation of this equipment, however, presents unique pro- duction problems in that procedures developed for one gen eration are usually not applicable to its successor. Tech niques, for example, used to adjust photolithography ma chinery to produce the maximum number of good chips are not useful in adjusting laser machinery.34 Besides adjusting machinery to achieve acceptable yield ratios— as mentioned, initial yields are as low as 5 percent or less— the imprinting process also involves adjusting var ious chemical reactions, such as solvents and reaction times, and maintaining or improving the manufacturing environ ment as a whole. To minimize the number of defective chips caused by dust particles, for example, imprinting is done in special “clean” rooms in which the air has been purified 100 times cleaner than hospital operating rooms or 10,000 times cleaner than typical office air.35 Imprinted wafers are usually air freighted to offshore plants for final assembly and testing work. In these plants, typically owned by the same company that designed and imprinted the chips, each good chip has small wires attached to its edges so it can carry electrical current. The wired chips are then encapsulated into plastic or ceramic cases and shipped back to the parent company for final testing and sale.36 In recent years, the introduction of automated wiring and encapsulating machinery has made for a return of this assembly work to the United States as the amount of manual labor required has deceased.37 In the 1970’s, for example, a worker could wire about 120 chips per hour, compared to 5,120 per hour using the machinery of the 1980’s. 1 The semiconductor industry is designated as sic 3674 by the 1982 S ta n d a r d I n d u s tr ia l C la s s ific a tio n M a n u a l of the Office of Management and Budget. This industry consists of establishments primarily engaged in manufacturing semiconductors and related solid state devices, such as semiconductor diodes and stacks, including rectifiers, integrated microcir cuits (semiconductor networks), transistors, solar cells, and light sensing and emitting semiconductor (solid state) devices. Average annual rates o f change are based on the linear least squares of the logarithms o f the index numbers. Extensions of the indexes will appear in the annual Bureau o f Labor Statistics bulletin, P r o d u c tiv ity M e a s u r e s f o r S e le c te d I n d u s tr i e s . 2 Andrew Pollack, “Japanese Chip Breakthrough,” T h e N e w Y o rk T i m e s , Feb. 5, 1987, p. D6; and Albert J. Blodgeet, Jr., “Microelectronic Packaging,” S c ie n tific A m e r ic a n , July 1983, p. 84. According to some projections, a billion element chip can be achieved, although limits imposed by fabrication processes may affect the time re quired to reach this level of density. See James D. Meindl, “Chips for Advanced Computing,” S c ie n tific A m e r ic a n , October 1987, pp. 7 8 -8 8 . 3 Robert W. W ilson, Peter K. Ashton, and Thomas P. Egan, In n o v a tio n , C o m p e titio n , a n d G o v e r n m e n t P o lic y in th e S e m ic o n d u c to r I n d u s try (Lex ington, m a , Lexington Books, 1980), pp. 86-89; and industry sources. 4 U .S. Department o f Commerce, A R e p o r t on th e U .S . S e m ic o n d u c to r I n d u s tr y , September 1979, pp. 45-48; and industry sources. 5 W. J. Sanders, C o m p e titiv e F a c to r s In flu en cin g W o r ld T r a d e in S e m i c o n d u c to r s , Statement before the Subcommittee on Trade, Committee on Ways and Means, U .S. House of Representatives, Nov. 30, 1979, Serial 9 6 -9 2 , pp. 53-54; and industry sources. While improvements in manufacturing techniques and processes are the major impetus behind declining unit prices, other factors, such as industry capacity and foreign competition, also play a role. In the early 1980’s, for https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Outlook While semiconductor output and demand have recovered from the 1985 downturn— with output increasing 1.8 per cent in 198638— the long-term "outlook for the industry hinges on a number of more fundamental factors than cycli cal business movements. The continued development of improved generations of integrated circuits coupled with improvements in manufacturing techniques offers two (not mutually exclusive) paths to follow— the mass production of improved standardized products, such as 4 megabit or larger memory chips and concentration on producing cus tomized chips for individual customers. To confront the challenge of mass production, a consortium of semiconduc tor companies is constructing a factory to test manufacturing techniques for the latest generations of semiconductor devices.39 To economically produce customized devices, many companies, especially small startup firms, are focus ing their efforts on developing computer-assisted and computer-integrated manufacturing and design processes.40 For the industry overall, however, the key to continued productivity gains will still mainly lie with the industry’s ability to turn laboratory innovations quickly into mar ketable products— especially considering the wide array of future semiconductor materials and devices currently on the drawing boards, such as superconducting compounds, holo graphic laser cubes, organic memory devices, silicon micromechanical devices, and three-dimensional quantum well devices.41 example, semiconductor manufacturers, both foreign and domestic, in creased their manufacturing capacity in anticipation of 30- to 50-percent annual sales growth. When this growth did not materialize, the resulting surplus of chips triggered sharp unit price declines even though the pre ferred capacity utilization rate of domestic manufacturers fell from 83 percent in 1983 to 69 percent in 1985. See Stephan Koepp, “Feeling the Crunch from Foreign Chips,” Th e W a ll S tr e e t J o u r n a l, Oct. 27, 1986, pp. 72-73; Michael W. Miller, “Microchip Firms in U .S. Yielding a Major Market,” T h e W a ll S tr e e t J o u r n a l, June 5, 1985, p. 34; and, S u rv e y o f P la n t C a p a c ity , 1 9 8 5 , Current Industrial Reports, MQ-C(85)-1 (Bureau of the Census, November 1986), p. 8. 6 Wilson and others, In n o v a tio n , C o m p e titio n , a n d G o v e r n m e n t P o lic y in th e S e m ic o n d u c to r I n d u s tr y , p. 35. 7 I b i d , p. 19; and U .S. Department of Commerce, A R e p o r t o n th e U .S . S e m ic o n d u c to r I n d u s tr y , p. 8. Although the military ’s consumption of semiconductor devices is lessen ing in proportion to that of other users, the Department of Defense still plays a significant role in the development o f new technologies and prod ucts. Beginning in the early 1960’s, when the Air Force funded the devel opment of integrated circuits for the Minuteman missile guidance system, the military has continued to support the semiconductor industry directly through research and development contracts and indirectly through product purchases. In 1979, for example, the Defense Department funded a pro gram to develop very high speed integrated circuits that involved nearly every major semiconductor manufacturer. By 1984, the program was be ginning to yield results in the form of improved integrated circuits, manu facturing techniques, and processes. While national security considerations constrain the immediate commercial applications of these advances, they eventually do occur. See A v ia tio n W ee k a n d S p a c e T e c h n o lo g y , July 30, 1984, “New Circuits Expected to Exceed,” pp. 46-51; “Honeywell Plans to Supply Samples 31 MONTHLY LABOR REVIEW April 1988 • Productivity Gains in the Semiconductor Industry Early Next Year,” pp. 52-60; “Hughes Chip Sets Supports Signal Process ing N eeds,” pp. 61-63; “Texas Instruments Seeks Commonality,” pp. 64-65; and John Paul Newport, Jr., “A Supercomputer on a Single Chip,” F o r tu n e , Sept. 29, 1986, pp. 128-29. 8 Wilton Woods, “How Chipmakers Survive,” F o r tu n e , Apr. 13, 1987, pp. 89-92; and industry sources. This breakdown of world market shares does not reflect the production o f “captive” semiconductor establishments who manufacture semiconduc tors mainly for use in-house as contrasted to merchant firms who produce for the general market. In 1981, it was estimated that the combined produc tion o f the two largest “captive” producers— at&t and IBM— amounted to about 25 percent of total semiconductor production as reported by the Department o f Commerce. See Wilson and others, I n n o v a tio n , p. 8. 9 Douglas A. Webbink, T h e S e m ic o n d u c to r I n d u s try : A S u r v e y o f S tr u c tu r e , C o n d u c t, a n d P e r f o r m a n c e , Staff Report to the Federal Trade Com mission, January 1977, pp. 117-19; and industry sources. 10 U .S. Department of Commerce, A R e p o r t on th e U .S . S e m ic o n d u c to r I n d u s tr y , p. 43; and industry sources. 11 Industry sources. 12 Grunwald and Flamm, T h e G lo b a l F a c to r y (Washington, The Brook ings Institution, 1985), pp. 53-54; and industry sources. 13 Industry sources. 14 U .S. Department of Commerce, A R e p o r t on th e U .S . S e m ic o n d u c to r I n d u s tr y , pp. 17-18; Wilson and other others, In n o v a tio n , C o m p e titio n , a n d G o v e r n m e n t P o lic y in th e S e m ic o n d u c to r I n d u s tr y , p. 33; and industry sources. 15 Industry sources. 16 “Toward the Silicon Foundry,” S c ie n tific A m e r ic a n , February 1983, pp. 82-83; and industry sources. 17 U .S. Department of Commerce, A R e p o r t o n th e U .S . S e m ic o n d u c to r I n d u s tr y , pp. 23-26; “Automated Semiconductor Line Speeds Custom Chip Production,” E le c tr o n ic s , Jan. 27, 1981, pp. 121-27; and industry sources. The relatively recent introduction of automated production equipment and processes may seem a bit odd considering the high-tech nature of the industry. The tardiness reflects the past reluctance of the industry to invest in expensive automated assembly lines that would soon be made obsolete by continuing product improvements. During the 1960’s, for example, there were many cases of firms’ building highly automated facilities only to find them quickly outmoded, in some cases even before completion, because these facilities were not adaptable to producing later generations of semiconductor devices. See Grunwald and Flamm, G lo b a l F a c t o r y , pp. 69 -7 0 ; and industry sources. 18 Mark Sieling, I n d u s try W a g e S u rv e y : S e m ic o n d u c to r s , S e p te m b e r 1977, Bulletin 2021 (Bureau of Labor Statistics, April 1979). 19 John A. Alic and Martha C. Harris, “Employment lessons from the electronics industry,” M o n th ly L a b o r R e v i e w , February 1986, pp. 3 2-34. 20 Wilson and others, In n o v a tio n , C o m p e titio n , a n d G o v e r n m e n t P o lic y in th e S e m ic o n d u c to r I n d u s tr y , pp. 13-18; U .S. Department of Com merce, A R e p o r t o n th e U .S . S e m ic o n d u c to r I n d u s tr y , pp. 10-13; and industry sources. 21 U .S. Department of Commerce, A R e p o r t on th e U .S . S e m ic o n d u c to r I n d u s tr y , p. 19. 22 John W. Wilson, “U .S. Chipmakers Are Learning to Cope,” B u s in e ss W e e k , Jan. 12, 1987, p. 92; Thomas C. Hayes, “Texas Instruments vs. Japan,” T h e N e w Y o rk T i m e s , July 1, 1987, p. D l; and industry sources. Within the semiconductor industry, there have been occasional attempts to manufacture finished electronic goods which incorporate integrated cir cuits (vertical integration). In the early 1970’s, for example, about 50 large semiconductor firms started to produce personal calculators and watches. By the late 1970’s, however, most had abandoned these efforts in the face o f declining prices for these products— ironically brought on, in large part, by the declining unit prices of semiconductors devices themselves. (Be tween 1974 and 1975, average prices for electronic calculators fell from $30 apiece to $6— mainly reflecting lower unit prices for their semiconduc tor innards.) At the height of this movement by the industry into consumer 32 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis electronic products (1974), secondary products accounted for about onefifth of total industry shipments. By 1975, they amounted to only 10 percent. Very few electronic goods manufacturers, however, have attempted to produce semiconductor devices in the face of relatively large investment requirements and the complex nature of the product. See Wilson and others, I n n o v a tio n s , C o m p e titio n , a n d G o v e r n m e n t P o lic y in th e S e m ic o n d u c to r I n d u s tr y , pp. 2 5 -3 6 , 98-101; and industry sources. 23 Otis Port, “For Chipmakers, National Boundaries Begin to Blur,” B u s in e ss W e e k , May 6, 1985, p. 110; Peter H. Singer, “The Semiconduc tor Revolution,” S e m ic o n d u c to r I n te r n a tio n a l , February 1986, p. 86; and industry sources. 24 Industry sources. 25 Grunwald and Flamm, G lo b a l F a c t o r y , p. 52; and industry sources. The swift replacement of semiconductor production machinery also re sults in a smaller total cumulative working capital investment than is found in most other manufacturing industries whose yearly capital expenditures mainly add to an already large base of relatively long-lived machinery. In 1985, for example, the semiconductor industry produced goods worth $5.82 for each new dollar of capital expenditures while the overall manu facturing sector produced goods worth $27.38. It is worth noting that innovations in production equipment occasionally led innovations in integrated circuits. For example, poly silicon deposition made metal oxide silicon dynamic random-access memories feasible. See Wilson and others, I n n o v a tio n , C o m p e titio n , a n d G o v e r n m e n t P o lic y in th e S e m ic o n d u c to r I n d u s tr y , pp. 38-41. 26 Adjustments for price changes were made by using the implicit defla tor for nonresidental investment in structures and producers’ durable equip ment. See E c o n o m ic R e p o r t o f th e P r e s i d e n t , January 1987, p. 236. 27 Grunwald and Flamm, G lo b a l F a c t o r y , pp. 51—53; and industry sources. In 1976, a million dollars’ worth of semiconductor devices required 54 employee years of labor inputs to produce, in contrast to 9 employee years for a similar amount of motor vehicles and 23 employee years for comput ers. 28 National Science Foundation, S c ie n c e I n d ic a to r s (U .S. Government Printing Office, 1979). 29 O f course, not all inventions springing from the industry’s research and development efforts result in successful products or manufacturing innovations. In fact, a large number of such inventions have not been commercially viable. See Wilson and others, I n n o v a tio n s , C o m p e titio n , a n d G o v e r n m e n t P o lic y in th e S e m ic o n d u c to r I n d u s tr y , pp. 56-62; and industry sources. 30 Robert Neff, “The River Boat Gamblers of the Chip Business,” B u s i n e s s W e e k , Dec. 15, 1986, pp. 96-98; “New Service Cuts the Cost of Making Just A Few Chips,” I n d u s try W e e k , Sept. 29, 1986, p. 36; and industry sources. While not matching the gains cited in these articles of between an eightand tenfold improvement in the costs and time associated with transferring prototypes into devices capable of being mass produced, many semicon ductor companies have experienced significant improvements attributable to computer-assisted design techniques. 31 Industry sources. 32 Everett M. Rogers and Judith K. Larsen, S ilic o n V a lle y F e v e r — G r o w th o f H ig h T e c h n o lo g y C u ltu re (New York, Basic Books, 1984), pp. 111-18. 33 U .S. Department of Commerce, A R e p o r t o n th e U .S . S e m ic o n d u c to r I n d u s tr y , p. 17; and industry sources. 34 Industry sources. 35 Rogers and Larsen, S ilic o n V a lle y F e v e r — G r o w th o f H ig h T e c h n o l o g y C u ltu r e , p. 112. 36 William F. Finan, Th e I n te r n a tio n a l T r a n s fe r o f S e m ic o n d u c to r T e c h n o lo g y T h ro u g h U .S .- B a s e d F i r m s , Working Paper 118 (Cambridge, m a , National Bureau of Economic Research, December 1975), pp. 18-19; and industry sources. 37 Steven P. Galante, “U .S. Semiconductor Firms Automate, Cut Chip Production in Southeast A sia,” T h e W a ll S tr e e t J o u r n a l , Aug. 21, 1985, p. 28; and industry sources. April 1987, pp. 1-12. 38 Andrew Pollack, “More Chips Expected From Japan Demand Rises in America; Shortage Seen,” T h e N e w Y o rk T i m e s , June 22, 1987, p. D l;an d David E. Sanger, “U .S. Chip Makers Recovering,” T h e N e w Y o rk T i m e s , May 26, 1987, p. D16. 41 Yasar S. Abu-Mostafa and Demetri Psaltis, “Optical Neural Comput ers,” S c ie n tific A m e r ic a n , March 1987, pp. 88-95; Klaus Bechgaard and Denis Jerome, “Organic Superconductors,” July 1982, pp. 72-84; James B. Angell, Stephen C. Terry, and Phillip W. Barth, “Silicon Micromechan ical D evices,” April 1983, pp. 44-55; and James D. Meindl, “Advanced Computing.” 3 9 D e fe n s e S e m ic o n d u c to r D e p e n d e n c y , Report of Defense Science Board Task Force, as excerpted in M a n u fa c tu rin g P r o d u c tiv ity F r o n tie r s , 40 U .S. Department of Commerce, International Trade Administration, U .S . I n d u s tr ia l O u tlo o k 1 9 8 7 , January 1987, pp. 3 2 -1 — 3 2 -6 . APPENDIX: Measurement techniques and limitations Indexes of output per employee hour measure changes in the relationship between the output of an industry and em ployee hours expended on that output. An index of output per employee hour is derived by dividing an index of output by an index of industry employee hours. The preferred output index for manufacturing industries would be obtained from data on quantities of the various goods produced by the industry, each weighted (multiplied) by the employee hours required to produce one unit of each good in some specified base period. Thus, those goods which require more labor time to produce are given more importance in the index. In the absence of physical quantity data, the output in dexes for the semiconductor industry were constructed using https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis a deflated value technique. The value of shipments of the various product classes was adjusted for price changes by appropriate Producer Price Indexes to derive real output measures. These, in turn, were combined with employee hour weights to derive the overall output measure. These procedures result in a final output index that is conceptually close to the preferred output measure. The indexes of output per employee hour relate total output to one input—labor time. The indexes do not measure the specific contributions of labor, capital, or any other single factor. Rather, they reflect the joint effect of factors such as changes in technology, capital investment, capacity utiliza tion, plant design and layout, skill and effort of the work force, managerial ability, and labor-management relations. 33 Productivity trends in the cotton and synthetic broad woven fabrics industry Expanding output per hour during the 1972-86 period has come about despite low output growth as the industry attempts to modernize and fend off increased import penetration M ark W . D u m a s and J. E d w in H en n e b e r g e r Productivity, as measured by output per hour, grew at an average annual rate of 3.7 percent per year from 1972 to 1986 in the cotton and synthetic broad woven fabrics indus try.1 This rate of increase was significantly higher than the 2.5-percent rate for the average of all manufacturing indus tries. Advances in industry productivity have been aided by substantial investments in capital and diffusion of techno logical advances such as shuttleless looms. In response to the recent import surge from low-wage foreign competitors, industry modernization and restructuring are taking place as part of an ongoing attempt to sustain productivity growth. Trends in productivity The productivity gain of 3.7 percent per year resulted from a rate of growth in output of 0.3 percent and a decline in hours of 3.3 percent. Output fluctuated sharply during the 1972-86 period. Generally, the industry followed the cycli cal pattern of the overall economy, with output declines coincident with the economic recessions of 1974-75 and 1980-82. Peak industry output occurred in 1977, prior to the explosive growth in imports. But while the output of the industry has fluctuated, sometimes rather widely, productiv ity, nonetheless, has, with a few exceptions, continued to advance. In many industries, sharp declines in output result Mark W. Dumas and J. Edwin Henneberger are economists in the Division of Industry Productivity and Technology Studies, Bureau of Labor Statis tics. 34 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis in corresponding declines in productivity. However, this has not been the case with broad wovens, because the industry has been able to adjust the level of the work force in re sponse to the changes in demand. Thus, even though output tumbled in 8 of the past 15 years, productivity fell in only 3. Productivity trends in this industry can be divided into two distinct periods. From 1972 to 1976, productivity ad vanced at a relatively slow rate of 1.5 percent annually, as output fell slightly— down 0.2 percent per year, and em ployee hours declined 1.7 percent annually. In contrast, from 1976 to 1986, productivity expanded at a significantly higher rate— 3.8 percent per year. This latter gain in output per hour also reflected output and employee hour declines. From 1976 to 1986, output declined 1.2 percent and hours fell 4.8 percent annually. (See table 1.) Industry description and operations The output of this industry consists of woven fabric more than 12 inches in width, made chiefly of cotton or synthetic fibers or both. Important markets for the industry’s output are the apparel, automotive, and home furnishings indus tries. Many plants in the industry are highly integrated and are capable of transforming bales of the fibers, first, into yam. Multiple strands of this yam are then interlaced at right angles in the process of weaving. Additionally, an inte grated mill would have the capability to “finish” the woven fabric. Finishing, a term for further treating fabric, may involve one or more of the following operations: bleaching, dyeing, printing (of a pattern), or applying permanent press treatment. Weavers lacking the capability to perform these finishing operations may contract with commission finishers to provide these services. (However, these contract finishers are not part of this study.) Finally, highly integrated mills may fabricate some of their output of finished fabric into end products such as sheets, towels, and pillowcases. Traditional production techniques Transforming fibers into finished fabric requires many complex, integrated operations. The fibers must first be “opened”— a loosening and partial cleaning process which “fluffs” up the fibers which were tightly compacted in the shipping bale. “Blending” assures a proper mix of cotton and synthetic fibers. The “picking” operation transforms the blended fibers into loose sheets of lint-like material (lap rolls) made up of roughly parallel fibers. These “laps” are then “carded” to further parallelize the fibers and reduce the sheet of fibers to a loose, rope-like strand. This rope-like material is then put through the “drawing” operation in which several of the strands are merged and their fibers further combed to increase parallelism among the fibers. The “roving” operation then reduces the “drawn” strand into a much smaller strand of fibers, inserts a slight twist, and winds the strands onto “bobbins.” Spinning machinery for the final process in the manufacture of yam draws out the strands of fiber, twists them into yam, and again winds the yam onto bobbins. In the winding and warping operations, yam is trans formed from the relatively small spinning bobbins onto larger packages for use on the weaving looms. Weaving then consists of interlacing crosswise or “filling” threads with lengthwise or “warp” threads on a loom to form fabric. If the yam that had fed the looms was already colored or “dyed,” the fabric is, for the most part, complete. If the yam was not dyed prior to weaving, the resulting off-white or “grey” fabric may then be dyed in the finishing operation. Finishing, a series of chemical, mechanical, and inspec tion techniques, completes the process of cloth manufacture in a fully integrated mill. Many discrete operations such as singeing, washing, bleaching, dyeing, printing, preshrink ing, calendering, and others may be included in finishing. It is during these finishing operations that the treatments aimed at improving the “wash and wear” property of cloth are performed. Technology in the 80 ’s Technological changes taking place in the industry fall into two general categories. One involves the improvement of conventional machines (in speed, capacity, and degree of automation) and the installation of auxiliary equipment (for machine cleaning and materials handling) to increase pro ductivity and improve product quality. Many of these changes have already been adopted by the larger, modern ized mills and are being adopted by smaller mills. The other https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis technological change involves more radical modifications, such as integration of two processes or more, instrumenta tion for process monitoring, and the marriage of computers to this instrumentation for real-time production information. While in most mills, yam is still made on a series of discrete machines, many plants have adopted a continuous opening-blending-carding operation, known as direct-feed or chute-feed carding. This eliminates the handling of fiber from machine to machine and actually eliminates an entire process called picking. In the old system, the picking proc ess rolls the fiber into large heavy “laps” which then must be moved manually or mechanically to the carding machine for the next process. Output with direct-feed carding is about 3 to 4 times greater per hour than the older manual system. Direct-feed carding greatly reduces the need for unskilled and semiskilled labor, compared to the conventional process of opening, blending, picking, and carding. In this continu ous system, no picker operators are required nor are the laborers who move the heavy fiber laps. Without the fiber laps, labor for cleaning and maintenance is also greatly reduced. In addition to being considerably more productive than conventional operations, the direct-feed or chute-feed process has also helped meet Federal requirements for lower cotton dust levels, because the opening-to-carding opera tions are major areas of cotton dust generation. Moreover, the chute system, it is claimed, improves yam quality by limiting fiber weight variations.2 Spinning, the final step in yam manufacturing, has been sped up by the introduction of open-end or rotor spinning. Table 1. Output per employee hour and related indexes for the cotton and synthetic broad woven fabrics industry, 1972-86 [1977=100] O u t p u t p e r e m p lo y e e h o u r A ll Year e m p lo y ees E m p lo y e e h o u r s Non P r o d u c t io n w o rk e rs p r o d u c t io n A ll O u tp u t w o rk e rs e m p lo y ees Non P r o d u c t io n p r o d u c t io n w o rk e rs w o rk e rs 1972 1973 1974 1975 1976 .... .... .... .... .... 85.8 76.6 79.2 86.7 86.9 85.7 76.5 79.4 87.2 86.8 86.7 77.1 78.0 83.0 88.8 89.4 80.6 79.7 79.5 89.2 104.2 105.2 100.6 91.7 102.6 104.3 105.3 100.4 91.2 102.8 103.1 104.6 102.2 95.8 100.5 1977 1978 1979 1980 1981 .... .... .... .... .... 100.0 93.5 100.7 104.9 107.4 100.0 93.6 100.5 105.0 108.0 100.0 92.6 102.8 104.1 101.0 100.0 90.4 97.5 98.0 94.7 100.0 96.7 96.8 93.4 88.2 100.0 96.6 97.0 93.3 87.7 100.0 97.6 94.8 94.1 93.8 1982 1983 1984 1985 1986 .... .... .... .... .... 112.5 121.6 119.9 123.9 130.3 115.5 122.8 120.7 125.0 130.7 89.9 112.3 112.5 114.0 128.4 81.2 92.2 90.3 82.5 85.5 72.2 75.8 75.3 66.6 65.6 70.3 75.1 74.8 66.0 65.4 90.3 82.1 80.3 72.4 66.6 -3.4 -1.7 -4.9 -4.6 -2 .7 -1.4 -3.8 -6 .6 A v e r a g e a n n u a l r a t e s o f c h a n g e * 1) 1972-86 1972-76 1976-86 1981-86 . . . , 3.7 1.5 3.8 3.6 3.8 1.6 3.9 3.4 3.0 1.2 2.7 5.6 0.3 -0.2 -1.2 -1.4 -3.3 -1.7 -4.8 -4.8 1Based on the linear least squares trends of the logarithms of the index numbers. 35 MONTHLY LABOR REVIEW April 1988 • Productivity in Broad Woven Textiles Conventional ring spinning is a relatively discontinuous op eration while the open-end machinery integrates several op erations and can produce some of the coarser filling yams at 4 times or more the speed of ring spinning.3 Moreover, open-end spinning reduces space, maintenance and cleaning requirements, and downtime. Additionally, automatic dof fing machinery can be built onto the new open-end spindles. Because doffing (removal of full bobbins) is one of the most labor-intensive operations in the mills, the successful au tomation of this process greatly improves productivity. Most notable among the technological advances in the production of woven fabrics has been the introduction of shuttleless looms. Conventional fly-shuttle looms use a wooden projectile (a shuttle) to carry the filling or crosswise yam back and forth between the alternating sets of length wise or warp threads. The shuttle is “slam” driven from one side of the loom to the other by wooden bars. To move the filling yam back and forth, the newer shuttleless looms use a variety of techniques and are of several types: Rapier (the largest number in place), missile, water jet (restricted to 100-percent synthetics), and air jet (currently very popular). As an example of the operation, air jet looms weave the cloth by propelling the filling yam by means of highpressure streams of air. Finally, electronic instmmentation and its extensive dif fusion is an integral part of the industry’s changeover to a more capital-intensive system. Instmmentation systems along with microprocessors are reducing labor requirements for machine operators, maintenance personnel, and un skilled laborers. They are reducing downtime and improv ing quality, but at the same time are upgrading requirements for skilled repair technicians and electricians. For example, in the dyeing and finishing operation, laser fabric inspection equipment can detect flaws in the grey woven fabric, while color monitoring devices check for dyeing irregularities. However, many of the productivity gains enjoyed by U.S. mills as a result of installing this new equipment and the advantage this gave domestic manufacturers over im ports from developing countries may be only temporary. Much of the new equipment has allowed domestic fabric manufacturers to undercut imports by producing specialty fabrics, thereby partially removing themselves from the low-end, undifferentiated fabric markets. However, be cause most of this equipment is also available to foreign manufacturers, any competitive advantage that U.S. mills might hold can potentially be quickly eroded. This problem for the U.S. mills is aggravated by the fact that the domestic textile machinery industry is shrinking and, in some re spects, nonexistent. The United States, for example, pro duces none of the shuttleless looms that are revolutionizing weaving.4 Employment trends Total employment in the cotton and synthetic broad woven fabrics industry declined at an average annual rate of 36 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3.1 percent from 1972 to 1986. This decline is significantly greater than the 0.2-percent decline in employment meas ured in the total manufacturing sector over the same period. Employment in this industry increased from 288,000 in 1972 to 293,000 in 1973, but fell during the recessionary years of 1974 and 1975. An improved economy help to boost employment to a peak of slightly over 293,000 in 1976. Since 1976, however, employment has, with the ex ception of 1984, declined steadily. Average annual employ ment, as of 1986, was 185,000. Total employee hours de clined, falling at a rate of 3.3 percent, also higher than the 0.2-percent decline registered by the total manufacturing sector. The number of production workers declined at an average annual rate of 3.2 percent. Production worker em ployment peaked at 264,000 in 1976 and fell thereafter. In 1986, 166,000 production workers were employed. The proportion of production workers to the total number of employees remained fairly stable over the period. In 1972, this proportion was 90 percent and in 1986 it was 89 percent. Average hourly earnings of production workers in the cotton and synthetic broad woven fabrics industry are lower than those in all manufacturing. In 1972, average hourly earnings in this industry were $2.75, compared to $3.82 for all manufacturing. By 1986, the industry’s aver age of $7.33 was still below the all-manufacturing average of $9.73, although the gap, in percentage terms, had nar rowed. Structural changes and capital spending The U.S. weaving industry has historically been frag mented and is still characterized by many firms, both large and small. However, between 1972 and 1986, industry structure changed significantly. Competition and Federal regulation led to increased capital expenditures. The indus try was also affected by two major recessions which resulted in the closing of less efficient plants and a reduction in the work force of 36 percent. These changes have resulted in a smaller but more competitive industry, operating at a high level of capacity. One of the factors which led to changes in the industry’s structure was its response to increased competition. Domes tic competition has been fierce for the better part of the last decade because of somewhat sluggish demand. The recent surge in imports has only intensified this competition.5 In the low-growth markets in which these firms (both foreign and domestic) compete, expanding market share for one firm generally means a decreased share for others.6 Despite international agreements to control their growth, imported goods continue to gain market share. The growth in im ported, uncut fabric has been accompanied by the influx of fabricated apparel products, resulting in the further shrink age of the domestic apparel industry. Thus, imported fabric and apparel products now make up nearly one-half of the apparel and apparel fabric market and one-third of the total textile market.7 In an effort to remain competitive, domestic firms are modernizing by investing in capital equipment. Industry specialists believe that capital investment will boost U.S. productivity, thereby reducing the price advantage of im ports.8 This price advantage is largely attributable to the differing wage structure between the United States and other nations. U.S. textile wages, for instance, are more than 8 times higher than wage rates in Korea, a country whose textile products are an increasing source of U.S. imports.9 Capital expenditures per employee have been increasing in the broad woven fabrics industry. Although expenditure levels have been below the all-manufacturing average (1972-85), capital expenditures per employee have grown substantially since 1972. In fact, over the period 1972-85, current-dollar capital expenditures per employee grew at an average annual rate of 12.2 percent (from $771 in 1972 to $3,817 in 1985). This rate outpaced the all-manufacturing rate of 9.5 percent, with expenditures growing from $1,356 in 1972 to $4,430 in 1985. A significant portion of these capital outlays has been allocated to safety and health equipment in an effort to meet the standards of the Occupational Safety and Health Admin istration ( o s h a ) and the Environmental Protection Agency ( e pa ). For some operations, particularly those in which dust levels are high, Federal regulations have been difficult to meet without new or overhauled equipment. Although these equipment outlays have been expensive, some industry spe cialists believe that Federal health and safety regulations have “contributed to the increased pace and intensity of modernization.” 10 These expenditures may have a negative short-term effect on the industry because many foreign com petitors do not incur such costs. However, the new equip ment may “increase worker productivity and manufacturing efficiency, and therefore improve international competitive ness.”11 Although there has been some dispute regarding the productivity-enhancing effect of the health and safety equip ment, spending for it is expected to decline in future years, leaving larger allotments for new and more productive oper ating equipment.12 This is especially important in an indus try where technological change has caused the rate of ma chinery turnover to grow more rapidly from year to year.13 Tremendous resources are required by those firms that wish to take advantage of these technological changes, and ultimately remain competitive. Larger firms have been in a better financial position to expend the huge sums required for new plant and equipment. The 10 largest firms in the industry accounted for 85 percent of new machinery pur chases. 14 These large firms, reaping the benefits of modern ization have increased their dominance over smaller firms. This dominance is illustrated by the concentration ratio, which represents the percentage of sales of a given industry https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis accounted for by its largest companies. The weighted con centration ratio of the eight largest firms in the industry rose from 52 percent in 1972 to 58 percent in 1982. Although spending on new plant and equipment has played a significant role in increasing the domestic indus try’s competitive stature, it has not been the sole factor. In general, successful firms have adopted more competitive strategies. Some of these strategies have been: identifying emerging market niches which foreign manufacturers might not have the capacity or incentive to supply, cutting re sponse and production times, and stressing a commitment to quality. Outlook Textile demand will continue to be heavily reliant on the basic strength of the economy, especially the apparel, auto mobile, and housing markets. However, demographic changes will also play a major role. For example, the num ber of persons in the age group 35-54 years old, who typi cally have rising incomes and high rates of consumption, are a key element in the growth of demand for textile products. In addition, new industrial products are being developed; some of these replace older products, but some involve new applications; for example, soil-stabilizing “geotextiles” that are used in erosion control. The productivity advances made by the industry to date, will, at a minimum, need to be maintained in the future if the industry is to have a chance at fending off increased market penetration from foreign textile products. Many in dustry analysts believe that “the only way to alter the inter national competitive balance is to drastically shorten the production cycle.”15 Thus, fabric manufacturers would be more closely tied to the apparel and other end-use manufac turers and retailers under a “quick-response” system. Con sumer retail preference readings, based on bar-coded end products, would be electronically transmitted to apparel and textile manufacturers, which would be able to respond rapidly by shifting production based on those readings. This would avoid the long lead times (now as much as a year or more) between yam spinning and ultimate fabrication into finished textile end products.16 A quick-response system may allow domestic manufac turers to capitalize on the advantages of market proximity and shortened delivery times— even in the face of low-wage foreign competition. Of course, this system would require that the entire chain of production, from yam spinning to end product fabrication and ultimately retailing, be “wired” into the network. Although several limited quick-response programs have apparently met with success, the organiza tional effort to expand such a system nationwide, through out the textile and apparel manufacturing and retailing in dustries, remains a major hurdle.17 37 MONTHLY LABOR REVIEW April 1988 • Productivity in Broad Woven Textiles ------ F O O T N O T E S — 1 The cotton and synthetic broad woven fabrics industry includes both sic 2211 and sic 2221 (see S ta n d a r d I n d u s tr ia l C la s s ific a tio n M a n u a l, 1987 Edition, Office o f Management and Budget). Establishments in these in dustries are primarily engaged in weaving fabrics more than 12 inches in width. Those establishments classified in sic 2211 weave fabrics that are wholly or chiefly cotton. Fabrics produced by establishments classified in sic 2221 are composed wholly or chiefly of silk and manmade fibers including glass. 2 “Special Report: Chute Feeding,” T e x tile W o r l d , September 1981, pp. 5 8-8 1 . 3 Th e I m p a c t o f T e c h n o lo g y o n L a b o r in F o u r I n d u s tr ie s (Bureau of Labor Statistics, May 1985), p. 2; and “Mills in U .S. Continue O-E Expansion,” A m e r ic a n T e x tile s In te rn a tio n a l, April 1987, pp. 2 1 -2 4 . 8 National Academy of Engineering and National Research Council, C o m p e titiv e S ta tu s o f th e U .S . F ib e r s , T e x tile s, a n d A p p a r e l C o m p le x , p. 16. 9 “Hourly Compensation Costs for Production Workers, Textile Mill Products Manufacturing,” (U .S. sic 22), 26 Countries, 1975-1986 (Bureau of Labor Statistics, September 1987). 10 Brian Toyne and others, Th e U .S . T e x tile M ill P r o d u c ts I n d u s try : S tr a te g ie s f o r th e 1 9 8 0 ’s a n d B e y o n d (University of South Carolina, Center for Industry Policy and Strategy, 1983), pp. 3-12; and Ruth Ruttenberg, C o m p lia n c e W ith th e o s h a C o tto n D u s t R u le , th e R o le o f P r o d u c tiv ity I m p r o v in g T e c h n o lo g y , for Office of Technology Assessment, March 1983, p. 103. 11 National Academy of Engineering and National Research Council, 4 U .S. Congress, Office of Technology Assessment, T h e U .S . T e x tile a n d A p p a r e l In d u s try : A R e v o lu tio n in P r o g r e s s — S p e c ia l R e p o r t , ota tet332 (Washington, Government Printing O ffice, April 1987), p. 5. C o m p e titiv e S ta tu s o f th e U .S . F ib e r s , T e x tile s , a n d A p p a r e l C o m p le x , 5 National Academy of Engineering and National Research Council, Th e 13 Office o f Technology Assessment, U .S . T e x tile a n d A p p a r e l I n d u s tr y , p. 95. C o m p e titiv e S ta tu s o f th e U .S . F ib e r s , T e x tile s , a n d A p p a r e l C o m p le x : A S tu d y o f th e In flu en ce s o f T e c h n o lo g y in D e te r m in in g I n te r n a tio n a l I n d u s p. 53. 12 I m p a c t o f T e c h n o lo g y o n L a b o r , p. 5. tr ia l C o m p e titiv e A d v a n ta g e (National Academy Press, August 1985), p. 14 Ib id . 57. 15 “Getting Competitive,” N a tio n a l J o u r n a l, June 7, 1986, p. 1363. 6 Office o f Technology Assessment, U .S . T e x tile a n d A p p a r e l I n d u s tr y , p. 59. 16 I b id . 1 I b id ., pp. 4, 80. 17 “Apparel Makers Shift Tactics,” The New Y o rk Tim es, Sept. 21, 1987, p. D5. APPENDIX: Measurement techniques and limitations Indexes of output per employee hour measure changes in the relation between the output of an industry and the em ployee hours expended on that output. An index of output per employee hour is derived by dividing an index of output by an index of industry employee hours. The preferred output index for manufacturing industries would be obtained from data on quantities of the various goods produced by the industry, each weighted (multiplied) by the employee hours required to produce one unit of each good in some specified base period. Thus, those goods which require more labor for production are given more importance in the index. Often, however, as an alternative, unit value weights are used when unit labor requirement weights are not available. Because neither unit labor nor unit value weights are available for all of the industry’s products, an alternative technique was used to derive the output index for this indus try. Therefore, real output for the industry was estimated by a “deflated” value technique. Changes in price levels were removed from current-dollar values of production by means of appropriate price indexes at various levels of subaggrega tion for a variety of products in the group. To combine segments of the output index into a total output measure, employee hour weights relating to the individual segments 38 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis were used, resulting in an output index that is conceptually close to the preferred output measure. The annual output index series derived from the above discussed deflated value technique was then adjusted (by linear interpolation) to the index levels of the “benchmark” output series. This benchmark series (also utilizing the de flated value technique) incorporates more comprehensive but less frequently collected Economic Census data. The indexes of output per employee hour relate total output to one input— labor. The indexes do not measure the specific contribution of labor, capital, or any other single factor. Rather, they reflect the joint effects of factors such as changes in technology, capital investment, capacity uti lization, plant design and layout, skill and efforts of the work force, managerial ability, and labor-management rela tions. The average annual rates of change presented in the text are based on the linear least squares trend of the logarithms of the index numbers. Extensions of the indexes will appear annually in the b l s bulletin, Productivity Measures fo r Se lected Industries and Government Services. A technical note describing the methods used to develop the indexes is avail able from the Office of Productivity and Technology, Divi sion of Industry Productivity and Technology Studies. An analysis of unemployment and other labor market indicators in 10 countries Declining unemployment rates in the United States, Canada, and the United Kingdom contrast with record highs in Japan, France, and Italy during 1987; for the first time, employment ratios by sex are analyzed Jo y a n n a M o y Unemployment rates declined in North America, Sweden, and the United Kingdom during 1987, but rose in Japan, France, and Italy and remained historically high in Aus tralia, Germany, and the Netherlands. The United States was the only country among the 10 studied in which jobless rates have fallen below their pre-1980-82 recession levels. During the second quarter of 1987, the U.S. unemployment rate declined markedly, and by December was 5.8 per cent— its lowest level in 7 years. (See table 1.) In 1986, employment increased in all countries studied. Job growth accelerated in North America, Australia, Japan, Germany, and Italy, and resumed in France. In the Nether lands, Sweden, and the United Kingdom, employment growth tapered off. (See table 2.) Employment continued to increase in all countries studied in 1987, but France and Italy. In France and Italy, the level of jobs was stagnant. Data for 1987 indicate an acceleration of employment growth for the United Kingdom and Swe den, about the same rate of growth as in 1986 for the United States, Canada, and Japan, and slowdowns in job creation for Australia, Germany, and the Netherlands. This article compares unemployment, employment, and related labor market statistics in the United States and nine foreign industrial nations— Canada, Australia, Japan, Joyanna Moy is an economist in the Division of Foreign Labor Statistics, Bureau o f Labor Statistics. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis France, Germany, Italy, the Netherlands, Sweden, and the United Kingdom.1 It also introduces comparative civilian employment-to-population ratios, by sex, and briefly dis cusses comparative unemployment rates published by two other organizations— the Organization for Economic Coop eration and Development ( o e c d ) and the Statistical Office of the European Communities ( e u r o s t a t ). The foreign labor statistics have been adapted where nec essary to correspond with U.S. definitions of employment and unemployment.2 Beginning with 1983, the measures presented here for Germany and the Netherlands reflect revised methods of adjusting their statistics for comparabil ity with U.S. concepts. The new methods lower Germany’s unemployment rate by less than one-half of a percentage point, but lower the Dutch rate by about 2 percentage points. This article also presents comparative figures for the United Kingdom; the previous measures related to Great Britain only, which excludes Northern Ireland. A discussion of these changes and other recent revisions in the Australian, Italian, and Swedish labor force surveys is included in the appendix. Developments in unemployment Over the last three decades, the relative unemployment rates among the countries studied have changed substan tially. In 1960, North American jobless rates were the highest recorded, while rates in France and Germany were the lowest. The difference between the highest and lowest 39 MONTHLY LABOR REVIEW April 1988 • Labor Market Indicators in 10 Countries Table 1. Civilian unemployment rates, seasonally adjusted, nine countries, 1983-87 P e r io d U n it e d S ta te s C anada A u s t r a lia Japan F ra n c e G e rm a n y It a ly 1 S w e d e n U n it e d K in g d o m 1983 . I .... II. . . . Ill .. . IV . . . 9.6 10.4 10.1 9.4 8.5 11.9 12.4 12.2 11.7 11.2 10.0 9.6 10.2 10.3 9.7 2.7 2.7 2.7 2.7 2.7 8.5 8.4 8.4 8.5 8.8 7.1 6.9 7.2 7.3 7.2 5.9 5.4 6.0 5.8 6.2 3.5 3.3 3.5 3.6 3.4 11.9 11.8 12.0 11.9 11.8 1984 .. I . ... II. .. . Ill . . . IV . . . 7.5 7.9 7.5 7.4 7.3 11.3 11.3 11.4 11.3 11.1 9.0 9.4 9.2 8.8 8.7 2.8 2.8 2.8 2.8 2.7 9.9 9.5 9.8 10.1 10.4 7.4 7.3 7.4 7.4 7.4 5.9 6.0 5.9 6.1 5.6 3.1 3.2 3.1 3.1 3.0 11.7 11.9 11.7 11.6 11.6 1985 .. I . . .. II.. . . Ill . . . IV . . . 7.2 7.3 7.3 7.2 7.1 10.5 11.1 10.6 10.2 10.1 8.3 8.6 8.5 8.1 7.9 2.6 2.6 2.6 2.6 2.8 10.4 10.5 10.5 10.5 10.4 7.5 7.5 7.6 7.5 7.5 6.0 5.9 5.8 5.9 6.1 2.8 3.0 2.9 2.8 2.7 11.2 11.4 11.2 11.1 11.1 1986 .. I ... . II.. . . III . . IV . . . 7.0 7.0 7.2 7.0 6.8 9.6 9.7 9.6 9.7 9.4 8.1 8.0 7.8 8.3 8.4 2.8 2.7 2.8 2.9 2.9 10.7 10.5 10.7 10.8 10.8 7.2 7.4 7.3 7.2 7.1 26.3 6.2 6.3 6.0 6.6 2.7 2.8 2.6 2.6 2.6 11.2 11.1 11.2 11.3 11.2 1987 .. I ... . I I . .. . III.. IV .. . 6.2 6.6 6.3 6.0 5.9 8.9 9.6 9.1 8.8 8.2 8.1 8.3 8.2 8.0 7.8 2.9 3.0 3.1 2.8 2.8 11.1 11.2 11.2 11.1 10.8 7.2 7.1 7.2 7.2 7.2 6.8 6.7 6.7 6.8 7.0 21.9 2.0 1.9 1.9 1.7 10.3 11.0 10.6 10.0 9.5 1 Quarterly data are for January, April, July, and October. 2 Break in series. For Italy, the first-half 1986 rate based on the former series was 6.4 percent. For Sweden, the 1986 rate based on the new series is 2.2 percent. N o t e : Quarterly figures for France, Germany, Italy, and the United Kingdom are calculated by applying annual adjustment factors to current published data, and therefore should be viewed as only approximate indicators of unemployment under U.S. concepts. Published data for Aus tralia, Canada, Japan, and Sweden require little or no adjustment. rates was about 5^ percentage points. Fifteen years later, North American jobless rates were still the highest. French and German rates moved up to the middle of the array and Japanese and Swedish rates descended to the bottom. The range between the highest and lowest rates widened to nearly 7 percentage points. In the early 1980’s, unemploy ment rose sharply in most of Western Europe. In the 1985— 86 period, France, the Netherlands, and the United King dom had jobless rates of about 10? percent to 11 percent, more than 3 percentage points above the U.S. rate and about 8 percentage points above the rates in Japan and Sweden. Germany’s unemployment rate also rose above the U.S. rate. The recovery from the recessions of the early 1980’s began earlier in the United States and Canada than in West ern Europe. Joblessness peaked at the end of 1982 in North America, while European unemployment rates continued to rise into, or even through, 1983. The subsequent improve ment in North American unemployment rates contrasted with little or no improvement in Western Europe (other than Sweden) and in Japan. The U.S. unemployment rate has declined substantially since the beginning of 1983, with the largest declines occur ring from that year through mid-1984, from more than 10 percent to l \ percent. The decline tapered off in late 1984 and as of the first half of 1986, the jobless rate was little changed, at 7.1 percent. It was not until the second quarter 40 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis of 1987 that the unemployment rate again declined markedly. By the fourth quarter, the jobless rate was 5.9 percent. Unemployment has also moved downward in Canada since the recession peak of 12.8 percent in the fourth quarter of 1982, although not as sharply as in the United States. By January 1986, the jobless rate had fallen below 10 percent for the first time in 3^ years. However, the Canadian jobless rate remained virtually unchanged throughout 1986 and the first quarter of 1987 at about 9j percent. In the second quarter of 1987, the unemployment rate fell sharply, as in the United States, and by December was 8.1 percent. In Australia, unemployment fell steadily between the end of 1983 and mid-1986. By that time, the jobless rate had dropped below 8 percent, from the recession high of more than 10 percent recorded in the third quarter of 1983. How ever, the unemployment rate inched upward to more than 8 percent in the second half of 1986 and remained there during the first half of 1987. During the second half of 1987, the jobless rate began to inch downward and by December was 7.8 percent. In Sweden and the United Kingdom, unemployment rates have been moving downward since mid-1983. In Sweden, the decline since 1985 is partly attributable to increased early retirements and the introduction of labor market pro grams aimed specifically at youth.3 Labor market schemes, such as public relief work, vocational training, and sheltered workshops are used extensively in Sweden to provide jobs to people who would otherwise be unemployed. The num ber of persons enrolled in these labor market schemes varies with the business cycle, but exceeded the number unem ployed for more than a decade. In 1986, enrollments de clined for the second consecutive year, to approximately 3.6 percent of the labor force. In 1984, participants accounted for 4.5 percent of the labor force. In the United Kingdom, the jobless rate moved slowly downward from its mid-1983 peak of 12 percent until it leveled off at about 11 percent 2 years later. At the end of 1986, unemployment rates resumed their downward move ment. By December 1987, the jobless rate had dropped to 9.3 percent, the lowest in 7 years. The German unemployment rate reached a new high of l \ percent in 1985. At the end of the year, the labor market situation began to improve. Improvement continued throughout 1986, albeit slowly, and by the fourth quarter, the jobless rate had moved downward to 7 percent. During 1987, however, the jobless rate resumed its movement up ward, reaching 7.2 percent in the fourth quarter. According to the German Federal Employment Institute, overall unem ployment would have been higher if the Institute had not stepped up its training programs for dislocated workers and . jobless youth. More than 500,000 persons were covered by the various Institute-sponsored programs.4 In contrast to the above countries, unemployment rates reached 30-year highs in Japan, France, and Italy in late 1986 and in 1987. In Japan, the steep rise in the value of the yen contributed to the deteriorating employment situation. The unemployment rate rose to 2.9 percent in mid-1986 and remained at that level until May 1987 when the rate reached Table 2. a new peak of 3.2 percent. By July, the unemployment rate had fallen back under 3 percent. While low relative to the rates in most countries, 3 percent is high by Japanese stand ards historically. Civilian labor force, employment, and unemployment, approximating U.S. concepts, 10 countries, 1979-86 [Numbers in thousands] Year U n it e d S ta te s C anada A u s t r a lia Japan F ra n c e G e rm a n y It a ly N e t h e r la n d s Sw eden U n it e d K in g d o m Labor force: 1979 .................................. 1980 .................................. 1981.................................. 1982 .................................. 1983 .................................. 1984 .................................. 1985 .................................. 1986 .................................. 104,962 106,940 108,670 110,204 111,550 113,544 115,461 117,834 11,231 11,573 11,904 11,958 12,183 12,399 12,639 12,870 6,519 6,693 6,810 6,910 6,997 7,133 7,272 7,562 55,210 55,740 56,320 56,980 58,110 58,480 58,820 59,410 22,670 22,800 22,930 23,160 23,130 23,290 23,340 23,480 26,250 26,520 26,650 26,700 126,650 26,760 26,980 27,180 63.7 63.8 63.9 64.0 64.0 64.4 64.8 65.3 63.4 64.1 64.8 64.1 64.4 64.8 65.2 65.7 61.6 62.1 61.9 61.7 61.4 61.5 61.8 63.0 62.7 62.6 62.6 62.7 63.1 62.7 62.3 62.1 57.5 57.2 57.1 57.1 56.6 56.6 56.2 56.2 53.3 53.2 52.9 52.6 '52.3 52.4 52.6 53.0 98,824 99,303 100,397 99,526 100,834 105,005 107,150 109,597 10,395 10,708 11,006 10,644 10,734 6,111 54,040 54,600 55,060 55,620 56,550 56,870 57.260 57,740 21,300 21,330 11,311 11,634 6,284 6,416 6,415 6,300 6,490 6,670 6,952 21,240 21,170 20,980 20,900 20,970 25,470 25,750 25,560 25,140 124,750 24,790 24,950 25,210 59.9 59.2 59.0 57.8 57.9 59.5 60.1 60.7 58.7 59.3 59.9 57.0 56.7 57.4 58.4 59.4 57.8 58.3 58.4 57.3 55.3 56.0 56.6 57.9 61.4 61.3 61.2 61.2 61.4 61.0 60.6 60.4 54.0 53.5 52.8 52.3 51.8 51.0 50.4 50.2 6,137 7,637 8,273 10,678 10,717 8,539 8,312 8,237 836 865 898 1,314 1,448 1,399 1,328 1,236 408 409 394 495 697 642 602 610 1,170 1,140 1,260 1,360 1,560 1,610 1,560 1,670 5.8 7.1 7.6 9.7 9.6 7.5 7.2 7.0 7.4 7.5 7.5 6.3 2.1 2.0 2.2 20,850 21,320 21,410 21,590 21,670 21,800 121,990 5,100 5,310 5,520 5,570 15,600 5,620 5,710 5,760 4,262 4,312 4,327 4,350 4,369 4,385 4,418 4,437 26,350 26,520 26,590 26,740 26,790 27,180 27,370 27,540 48.0 48.2 48.3 47.7 47.5 47.3 47.2 M7.5 49.0 50.2 51.4 51.2 150.9 50.5 50.7 50.8 66.6 66.9 67.2 62.6 62.5 62.2 62.3 62.1 62.6 62.7 62.7 19,930 20,280 20,250 20,320 20,390 20,490 120,610 4,830 4,980 5,010 4,980 14,890 4,930 5,110 5,200 4,174 4,226 4,219 4,213 4,218 4,249 4,293 4,319 24,940 24,670 23,800 23,710 23,600 24,000 24,310 24,450 51.7 51.7 50.8 49.6 148.6 48.5 48.7 49.1 45.9 46.1 45.9 45.2 44.7 44.5 44.4 144.6 46.4 47.0 46.6 45.8 144.5 44.3 45.4 45.9 65.3 65.6 65.1 64.7 64.4 64.5 65.0 65.4 59.2 58.1 55.7 55.3 54.7 55.3 55.7 55.7 1,370 1,470 1,730 1,920 1,960 2,310 2,440 2,510 780 770 1,090 1,560 11,900 1,970 2,030 1,970 920 920 1,040 1,160 1,270 1,280 1,310 11,380 270 330 510 590 1710 690 600 560 88 86 1,420 1,850 2,790 3,030 3,190 3,180 3,060 3,090 6.0 3.0 2.9 4.1 5.8 17.1 7.4 7.5 7.2 4.4 4.4 4.9 5.4 5.9 5.9 21,120 Labor force participation rate:2 1979 .................................. 1980 .................................. 1981.................................. 1982 .................................. 1983 .................................. 1984 .................................. 1985 .................................. 1986 .................................. 66.9 66.8 66.8 66.7 66.6 Employment: 1979 .................................. 1980 .................................. 1981.................................. 1982 .................................. 1983 .................................. 1984 .................................. 1985 .................................. 1986 .................................. 11,000 21,200 20,200 Employment-population ratio:3 1979 .................................. 1980 .................................. 1981.................................. 1982 .................................. 1983 .................................. 1984 .................................. 1985 .................................. 1986 .................................. Unemployment: 1979 .................................. 1980 .................................. 1981.................................. 1982 .................................. 1983 .................................. 1984 .................................. 1985 .................................. 1986 .................................. 108 137 151 136 125 118 Unemployment rate: 1979 .................................. 1980 .................................. 1981.................................. 1982 .................................. 1983 .................................. 1984 .................................. 1985 .................................. 1986 .................................. 11.0 11.9 11.3 10.5 9.6 6.1 5.8 7.2 10.0 9.0 8.3 8.1 2.4 2.7 2.8 2.6 2.8 6.4 7.5 8.3 8.5 9.9 10.4 10.7 6.0 16.3 5.3 6.2 9.2 10.6 112.7 12.3 10.5 9.7 2.1 2.0 2.5 3.1 3.5 3.1 2.8 5.4 7.0 10.5 11.3 11.9 11.7 2.7 11.2 11.2 2.1 2.0 6.8 Unemployment rate (as published): 1979 .................................. 1980 .................................. 1981.................................. 1982 .................................. 1983 .................................. 1984 .................................. 1985 .................................. 1986 .................................. 5.8 7.1 7.6 9.7 9.6 7.5 7.2 7.0 7.4 7.5 7.5 11.0 11.9 11.3 10.5 9.6 6.3 6.1 2.1 2.0 2.2 5.8 7.2 2.4 10.0 2.6 9.0 8.3 2.7 8.1 2.6 2.8 1 Break in series. Based on the former series, the adjusted unemployment rate would be approximately 0.3 percentage point higher for Germany, 0.2 percentage point higher for Italy, and 2 percentage points higher for the Netherlands. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 6.0 6.4 7.5 8.3 8.5 9.9 10.5 10.7 3.8 3.8 5.5 7.5 9.1 9.1 9.3 9.0 7.7 7.6 8.4 9.1 9.9 10.4 10.6 11.1 5.1 5.9 9.1 12.6 17.1 17.2 15.9 14.6 2.5 3.1 3.5 3.1 2.8 2.7 5.3 10.4 10.9 11.6 11.7 11.9 11.9 2 Civilian labor force as a percent of the civilian working age population, 2 Civilian employment as a percent of the civilian working age population. 41 MONTHLY LABOR REVIEW Table 3. April 1988 • Labor Market Indicators in 10 Countries Civilian unemployment rates, by sex, 10 countries, selected years, 1970-86 Year U n it e d S ta te s C anada A u s t r a lia Japan F ra n c e G e rm a n y Ita ly N e t h e r la n d s Sw eden U n it e d K in g d o m Men: 1970 .................................. 1975 .................................. 1979 .................................. 1980 .................................. 1981.................................. 4.4 7.9 5.1 6.9 7.4 .................................. .................................. .................................. .................................. .................................. 9.9 9.9 7.4 7.0 6.9 1982 1983 1984 1985 1986 5.6 1.1 6.2 6.6 6.9 7.0 3.8 5.2 5.1 4.8 11.1 12.1 11.2 6.4 9.7 8.7 10.3 9.4 8.0 7.7 1.2 1.8 1.9 1.7 2.0 2.1 2.5 2.5 2.4 2.4 1.4 2.9 4.3 4.4 5.5 .5 3.3 2.3 2.3 3.4 2.5 2.5 3.0 2.9 3.3 (D 4.0 3.7 4.4 7.0 1.4 1.4 1.9 1.7 2.4 6.2 6.6 8.0 5.2 26.4 3.8 4.1 4.2 4.3 24.4 9.0 211.4 10.9 9.2 (D 3.0 3.4 3.0 5.2 5.8 7.3 7.4 (D 8.3 9.1 10.1 8.1 13.7 2.3 2.3 2.7 8.6 13.7 215.2 14.4 13.0 (1) 3.4 3.5 3.2 2.9 2.7 8.7 8.9 6.4 6.4 5.9 2.8 2.6 3.5 5.0 5.6 7.4 11.5 11.5 12.1 11.9 11.5 11.6 Women: 1970 .................................. 1975 .................................. 1979 .................................. 1980 .................................. 1981.................................. 5.9 9.3 1982 1983 1984 1985 1986 .................................. .................................. .................................. .................................. .................................. 5.8 2.8 2.2 4.1 .6 7.0 6.8 8.1 8.8 6.2 8.6 7.4 7.9 8.4 8.3 7.9 7.4 3.9 4.1 3.3 3.5 3.6 4.1 3.8 5.1 9.4 9.2 7.6 7.4 7.1 10.9 8.5 10.4 9.5 11.6 11.3 10.7 9.9 8.2 8.8 8.7 3.5 3.7 3.3 3.1 3.3 9.4 10.5 11.2 11.1 12.6 12.9 13.1 6.9 28.3 8.9 9.2 9.2 9.4 9.4 9.4 29.8 1.7 2.0 2.3 4.0 5.0 6.3 9.0 11.1 11.6 11.3 10.7 10.7 1 Not available. 2 Break in series. In France, the jobless rate rose to lOj percent in early 1985 and remained at that level for a year. However, by the second quarter of 1986, unemployment resumed its upward movement and reached a new peak of more than 11 percent during the first three quarters of 1987. In response to the deteriorating labor market situation, the French government introduced several programs during 1986 aimed at reducing structural rigidities— simplifying regulations pertaining to layoffs, allowing nongovernment organizations to make job placements, reducing restrictions on fixed-term, temporary, and part-time employment contracts, and expanding job cre ation and training programs.5 The Italian jobless rate, which declined below 6 percent in 1984, has generally risen since early 1985. By the fourth quarter of 1987, it reached 7 percent. However, in addition to a slowly rising unemployment rate, there are a significant number of Italians who would like to work but who are not currently seeking work and who are excluded from the b l s adjusted unemployment statistics. Nearly one-half of the workers classified as unemployed by the Italian authorities have been reclassified by bls as discouraged workers. Although quarterly jobless rates approximating U.S. con cepts are not available for the Netherlands, the seasonally adjusted registered unemployment rate provides an indicator of recent trends. This rate, approximately 5 percentage points higher than the BLS-adjusted rate in recent years, has generally declined since December 1983. By early 1987, it had fallen about 4 percentage points, from a high of 17 percent. Unemployment rates by sex. The historical relationship of higher jobless rates among women was maintained in 1985 42 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis and 1986 in all countries studied except the United King dom, where rates for men have been traditionally higher. (See table 3.) The ratio of female-to-male unemployment rates remained widest in Italy, where the ratio was greater than 2. In Japan, France, Germany, and the Netherlands, the ratio was 1.5, whereas in the United States, Canada, Aus tralia, and Sweden, the rates for women were only slightly above those for men. Since 1970, the ratio of female-to-male unemployment rates has narrowed in every country studied, except in Ger many and Italy. By 1986, the differential in the United States, Canada, and Sweden had virtually disappeared. In the United Kingdom, the reverse differential has narrowed. Unemployment rates by age. Since 1983, unemployment rates among youth (persons under age 25) have been at least double the rate of persons 25 years and older in most coun tries studied. (See table 4.) In North America, Australia, Germany, Sweden, and the United Kingdom, youth jobless rates have declined since 1983; in Japan and Italy, they have risen. In the United Kingdom, the youth unemployment rate declined between 1983 and 1985, but rose slightly in 1986. The French youth unemployment rate rose between 1983 and 1985, but fell in 1986. Programs aimed at providing jobs for youth, especially teenagers, have contributed to the decline or abated the increase in Western Europe. In addi tion, demographic pressures have eased as the supply of youth entering the labor market has declined. In 1986, rising unemployment rates in France and Germany for workers 25 and over, accompanied the declining youth jobless rates, sug gesting that the special measures may have partly shifted the burden of unemployment.6 In general, unemployment rates among teenagers re mained considerably higher than among young adults (age 20-24 years). In Japan, France, and Italy, teenage unem ployment rates reached new highs during 1985. By 1986, teenage unemployment rates were declining in all but Japan and the United Kingdom, and most likely, Italy. The 1986 adjusted teenage unemployment rate for Italy was not avail able; however, given that the published youth rate rose, it is likely that the teenage rate also rose. In contrast, since 1984, the unemployment rate for Swedish teenagers has fallen well below the rate for young adults. Employment in the Youth Teams program has substantially reduced unem ployment among 18- and 19-year-olds.7 were created in North America, while the six Western Eu ropean countries experienced a net gain of 810,000 jobs. Canadian job creation rates lagged behind those of the United States during the early 1980’s. By 1985, the Cana dian employment growth rate was once again stronger than in the United States, but in 1987, the U.S. growth rate was stronger. In Australia, employment has expanded vigorously since 1984. Employment growth rose from 3 percent in 1984 and 2.8 percent in 1985 to 4.2 percent in 1986. In 1987, employ ment continued to expand, at 2.2 percent. Japan is the only country studied where employment has risen continuously since 1980. In 1985 and 1986, the num ber of jobs created totaled nearly 1 million. During 1987, employment continued to expand and 580,000 jobs were created. Japan’s population is about half that of the United States. In Western Europe, employment gains were recorded in 1985 through 1987, except in France and Italy. Although French employment rose slowly throughout 1985, the in crease was not sufficient to offset the previous year’s loss. A small gain was recorded in France in 1986, but jobs were stagnant in 1987. In Italy, employment increased in both 1985 and 1986, but stabilized during 1987. In the Nether lands, Sweden, and the United Kingdom, the job creation rate in 1986 was less than in 1985. However, job growth in Sweden and the United Kingdom accelerated in 1987, while in the Netherlands, it probably decelerated.8 In Germany, 1986 was a better year for job creation than 1985, but 1987 saw a tapering off of growth. The following tabulation shows the percent change in employment from the previous Employment trends Employment increased more rapidly in North America and Australia than in Japan and Western Europe in 198587. In the United States, job creation has continued un abated since the end of 1982, although it has slowed in recent years. The employment growth rates for 1985 (2 percent) and 1986 (2.3 percent) were less than half the 1984 rate. About 4.6 million jobs were created between 1984 and 1986. During the course of 1987, an additional 3.1 million jobs were created— the largest annual gain since 1984. In contrast, aggregate employment in the six Western Eu ropean nations studied rose by only 1.4 million between 1984 and 1986, and by about 700,000 in 1987. (The aggre gate population of these six countries slightly exceeds that of the United States.) The contrast between the North Amer ican and European experience in generating jobs is not a new phenomenon. Since 1979, more than 15 million jobs Table 4. Civilian unemployment rates, by age, nine countries, 1983-86 A g e g ro u p U n it e d S ta te s Canada A u s t r a lia Japan F ra n c e 1 G e rm a n y 1 It a ly Sw eden 8.2 10.6 10.2 5.9 21.4 29.6 17.4 U n it e d K in g d o m 1 1983 All working ages.................................................................... Under 25 years.................................................................. Teenagers3 .................................................................... 20-24 years .................................................................. 25 years and o ve r.............................................................. 9.6 17.2 22.4 14.5 7.5 22.2 11.9 19.9 18.5 9.4 18.3 23.6 14.5 7.0 7.5 14.0 18.9 11.5 5.8 11.3 17.9 19.9 16.8 9.3 9.0 16.8 22.3 12.9 6.3 7.2 13.6 18.6 10.5 16.5 18.8 15.3 8.7 8.3 15.2 20.3 11.5 5.9 4.8 7.5 4.2 2 .f 8.1 2.8 15.1 5.2 7.5 4.6 2.5 10.0 2.7 4.6 6.4 4.1 2.4 8.0 21.2 6.5 3.5 30.7 18.8 5.8 11.7 5.5 2.8 2.6 2 11.6 2 20.0 2 22.1 2 18.3 2 9.2 9.6 26.2 37.8 23.6 6.7 6.7 10.5 5.9 21.9 29.8 17.9 3.1 11.8 6.1 2.8 2.6 19.7 22.3 17.9 9.5 10.8 7.0 1984 All working ages.................................................................... Under 25 years.................................................................. Teenagers3 ..................................................................... 20-24 years .................................................................. 25 years and ove r.............................................................. 2.8 5.0 7.0 4.4 2.4 11.6 9.8 5.8 5.0 6.7 1985 All working ages.................................................................... Under 25 years.................................................................. Teenagers3 .................................................................... 20-24 years .................................................................. 25 years and o ve r.............................................................. 11.1 5.6 2.6 10.3 27.6 36.6 25.6 7.5 6.9 10.0 10.6 6.0 22.1 6.2 30.4 18.3 2.9 (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) 9.6 2.8 11.2 5.8 4.6 6.4 2.3 17.7 19.8 16.4 9.3 2.7 5.7 4.4 6.3 20.1 1988 All working ages.................................................................... Under 25 years.................................................................. Teenagers3 ..................................................................... 20-24 years .................................................................. 25 years and o v e r.............................................................. 7.0 13.3 18.3 10.7 5.4 9.6 15.2 16.8 14.3 20.2 11.2 8.0 5.7 1 French data are for March; German data are for June; and U.K. data for 1984 onward are for Aprll-June. 2 Data exclude Northern Ireland and are not adjusted to U.S. concepts. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 10.3 25.3 31.3 24.0 7.9 2.1 11.2 18.0 16.7 9.2 316- to 19-year-olds In the United States, France, Sweden, and the United Kingdom; 15- to 19-year-olds in Canada, Australia, and Japan; and 14- to 19-year-olds in Germany and Italy. 4 Not available. 43 MONTHLY LABOR REVIEW April 1988 • Labor Market Indicators in 10 Countries year for 1985-87 (note: 1987 data are preliminary for Europ e , and Dutch data for that year are estimated by the o ecd ): United States ..................... . . . Six European countries .. . . . . France ............................ . . . Germany ....................... . . . Italy ................................ . . . Netherlands ................... . . . S w eden............................ . . . United Kingdom ........... . . . 1985 1986 1987 2.0 .7 - .4 .6 .5 3.7 1.0 1.3 2.3 .7 .3 1.0 .6 1.8 .6 .6 2.6 .7 0 .6 - .1 .8 1.6 1.9 Full-time versus part-time employment. In addition to the differences in employment growth rates noted above, the importance of full-time and part-time employment varies widely. In North America, employment growth has con sisted primarily of full-time jobs, while in Europe and Aus tralia, growth in part-time jobs has been more marked. Ac cording to the o e c d , nearly three-fourths of the 12 million net new jobs created in North America between 1979 and 1986 were full-time positions, in sharp contrast with Europe where the number of full-time jobs between 1979-85 re mained virtually unchanged.9 In the United States, of the 4.6 million jobs created be tween 1984 and 1986, 4 million were full-time positions. However, in 1986 and 1987, the growth rate of persons voluntarily working part-time schedules was higher than that for those on full-time schedules. In Canada, the number of full-time jobs increased steadily between 1984 and 1986, although their proportion of civilian employment has de clined somewhat. The share of part-time jobs to overall employment has increased since 1980. In Japan, the number of regular full-time employees has continued to increase while the number of new temporary and part-time employees hired has tapered off since 1983. A significant and rising proportion of these temporary and part-time workers are women (68 percent in 1986). Japanese firms prefer to hire women as temporary or part-time workers because of their tendency to withdraw from the labor market for marriage and child rearing and to return when their children begin school. In addition, under the Japanese income tax system, it is sometimes more advanta geous for a married woman to work part time rather than full time.10 In Australia, the growth rate in part-time employment outpaced the growth rate in full-time employment. In 1986, the number of part-time jobs created (116,000) accounted for 40 percent of all the new jobs created. In 1985, part-time jobs rose by 55,000 and accounted for about 30 percent of all new jobs. Economic part time. In 1985 and 1986, as the employ ment situation improved, the number of persons who were involuntarily working part time declined in all countries for which data are available. 44 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis In Western Europe and Japan, workers placed on parttime schedules for economic reasons are provided payments to compensate for hours lost. In the United States and Canada, such payments are not widespread. In Western Europe, data on such workers are available for France, Germany, Italy, and the Netherlands and are derived from administrative records relating to payments for work time lost because of economic reasons. In North America, the source of the data on involuntary part-time work is the labor force survey and the statistics contain a component of underutilization not covered in the adminis trative statistics—persons working part time because they could not find full-time jobs. In France, the number of persons compensated for work ing shorter hours fell in 1985 by 77,000 and in 1986 by 68,000 to 128,500 (0.6 percent of civilian employment). The number of days not worked declined by 40 percent between 1984 and 1986 to 8.9 million. At its peak in 1981, more than 320,000 French workers (1.6 percent of civilian employment) were compensated for 17.4 million days lost. In Germany, the number of persons who experienced reductions in their workweek and received short-time bene fits fell by 40 percent in 1985 to about one-third the 1983 peak of 675,000 persons. In 1986, short-time benefit recip ients declined 17 percent to 195,000, approximately 0.8 percent of civilian employment. In Italy, the Wage Supplement Fund paid for 660 million hours not worked in 1985, nearly 100 million hours less than the 1984 peak. In 1986, the number of hours subsidized declined 10 percent to 595 million hours, approximately equivalent to 330,000 person years of work. In the Netherlands, the number of persons for whom permits for short-time work have been issued declined 85 percent in 1985. According to the Dutch, an equivalent of 1,800 person years of work were lost in 1984 and only 300 person years in 1985. In 1986, the number of permits issued fell 13 percent with a loss of 300 person years of work.11 In the United States, data are available from the Current Population Survey on the number of persons working part time for economic reasons. This group comprises persons working reduced hours for economic reasons and persons working part time because they could not find full-time work. The number peaked at 6.3 million in 1983 and has since declined but at a progressively slower pace. In 1986, 5.6 million workers, approximately 5.1 percent of the em ployed, were affected. The proportion of persons on re duced work schedules held steady at 2.3 percent of employ ment in 1984 and 1985 and declined to 2.2 percent in 1986. Persons working part time because they could only find part-time jobs continued the decline begun in 1984. In 1985 and 1986, 2.6 percent of all civilian workers were unable to find full-time jobs. In Canada, the number of persons involuntarily working at regular part-time jobs continued to rise until 1986. Be tween 1975 and 1985, the number of these part-time work- ers increased fivefold; between 1980 and 1985, the number more than doubled. In 1985 and 1986, more than 500,000 part-timers, about percent of civilian employment, wanted to work full time but were unable to find a full-time job. The Canadian labor force survey also collects data on the number of employed persons who lost work time because of layoff or reduced hours. The number of such persons de clined one-fifth in 1983 and more moderately in 1984 and 1985. In 1986, the number remained unchanged. The ratio of persons on this type of reduced work schedule inched downward from 1.1 percent of civilian employment in 1983 to 0.8 percent in 1985 and 1986. Employment ratios by sex Employment-to-population ratios are another indicator of how well a country’s economy provides jobs for its workers. Over the long term, employment ratios are influenced by structural factors such as additional years of schooling, early retirement, and the rising participation of women. Over the short term, changes in business activity also affect the movement of the ratio. Table 5 and chart 1 present employment-population ratios by sex adjusted to U.S. concepts for 10 countries. Data are shown by sex because the overall trend masks marked dif ferences in the trends for men and women. Employment-topopulation ratios for men declined in all countries between 1960 and 1986. The largest declines occurred in Western Europe. Male employment ratios fell from 83 to 62 percent in France and from 82 to 64 percent in Germany. British and Italian men also recorded large declines in their employment ratios. The smallest declines, less than 10 percentage points, occurred in North America and Japan. In 1986, male employment ratios were highest in Japan (75 percent) followed by the United States, Canada, Aus tralia, and Sweden (about 70 percent) and lowest in France, Italy, and the Netherlands (about 62 percent). In 1960, male Table 5. employment ratios were lower in the United States and Canada than in Western Europe and Japan. The range be tween the highest and the lowest ratio was much narrower, 8 percentage points, compared to 14 percentage points in 1986. The general downward movement of male employment ratios reflects the long-term trends of increased years of education and earlier retirements. In many Western Eu ropean nations, retirement ages have been lowered in re sponse to continued high unemployment rates. The ratio is also affected by changes in the age distribution of the popu lation. In the six Western European nations studied, the proportion of their combined populations age 65 and over increased from 12 percent of the total population in 1970 to 14 percent in 1980. In 1985, the proportion remained at about 14 percent. In contrast, in the United States, where the total population is a little smaller than the combined Eu ropean population, the ratio is lower. The proportion age 65 and over rose steadily from 10 percent in 1970 to 12 percent in 1985. In Japan, the ratio is still lower but rising— 7 percent in 1970 and 10 percent in 1985. In the Netherlands, the low and falling employmentpopulation ratio is associated with a rise in both disability pensions and early retirement programs, which have encour aged withdrawal from the labor force.12 In Italy, the exis tence of a large underground economy may be an important factor which helps to explain its low ratio. Many Italians are engaged in unrecorded employment; according to the o e c d , some are officially classified as not in the labor force while others are classified as unemployed.13 Trends in employment ratios were more varied among women than among men. Female employment ratios have generally moved upward from the early 1960’s in North America, Australia, Sweden, and the United Kingdom. In Japan, France, and Italy, they initially fell, but subsequently turned upward. In France, the rise began in the early 1970’s. In Japan and Italy, the rise began in the mid-1970’s. The Civilian employment-population ratios by sex, 10 countries, selected years, 1960-86 c-----------------Year U n it e d S ta te s Canada A u s t r a lia Japan F ra n c e G e rm a n y It a ly N e t h e r la n d s Sw eden (D (D (1) 69.4 U n ite d K in g d o m Men: 1960 1965 1970 1975 1980 1985 1986 .................................. .................................. .................................. .................................. .................................. .................................. .................................. 78.9 77.5 76.2 71.7 72.0 70.9 71.0 76.9 76.9 73.4 73.5 73.0 68.7 69.5 (D 84.4 83.2 79.1 75.1 70.6 70.9 82.8 80.2 80.5 79.5 77.9 75.9 75.4 35.5 37.1 40.8 42.0 47.7 50.4 51.4 28.6 32.6 36.1 40.8 46.2 48.5 49.7 (D 34.0 39.3 41.4 41.9 43.0 45.1 51.8 48.1 48.2 44.0 45.7 46.3 46.2 62.2 62.0 82.0 80.7 78.3 70.6 68.9 63.7 64.1 62.5 62.2 61.0 (D (D 81.5 77.4 76.0 73.6 70.5 70.6 40.0 37.9 38.0 f 39.1 40.0 39.7 39.6 40.5 39.9 38.2 37.0 36.7 35.5 36.0 31.0 26.6 25.0 25.3 27.9 27.8 28.3 d) (D (D 24.5 28.0 30.2 (D ) 45.8 49.1 54.0 58.0 59.7 60.4 83.4 80.9 76.4 72.2 68.6 79.5 75.2 71.9 68.8 66.0 66.8 85.0 83.5 79.2 76.7 72.8 68.0 67.5 Women: 1960 1965 1970 1975 1980 1985 1986 .................................. .................................. .................................. .................................. .................................. .................................. .................................. 0 38.9 40.8 41.2 44.4 44.8 44.4 44.9 1 Not available. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 45 MONTHLY LABOR REVIEW April 1988 • Labor Market Indicators in 10 Countries Chart 1. Civilian employment-population ratios of men and women, 10 countries, 1960-86 [Percent] 46 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis [Percent! Netherlands also shows an increase since the mid-1970’s. In Germany, the ratio trended downward until the mid1980’s, but now may be rising. The range between the highest and lowest ratios also widened between 1960 and 1986. In 1960, the range was about 20 percentage points. By 1986, the range had widened to more than 30 percentage points. In 1986, Swedish women had by far the highest employ ment ratio, 60 percent, more than double the 28 percent for Italian women and double the rate for Dutch women. In Italy, employment in the underground economy may also partially explain the very low ratios recorded by Italian women. Employment ratios of 45-50 percent were recorded in North America, Australia, Japan, and the United King dom. France and Germany had lower ratios, at 40 percent and 36 percent, respectively. The varied trends in female employment ratios partially reflect the changing sectoral composition of employment. Female employment ratios initially declined, as employ ment shifted out of the agricultural sector into the goodsproducing sector. Many women who worked on family farms withdrew from the labor market when they moved to the city. In 1960, about 10 percent of employed civilians in North America, the Netherlands, and the United Kingdom worked in the agricultural sector, while in the other coun tries studied, the proportion ranged from 15 percent (Ger many and Sweden) to 30 percent (Japan and Italy). By 1986, the proportions had declined in all countries, to about 3 percent in the United States and the United Kingdom; 5 percent in Canada, Australia, Germany, the Netherlands, and Sweden; and slightly under 10 percent in Japan, France, and Italy. As these countries moved from goods-producing to more service-oriented societies, female employment increased. Accompanying this rise was an increase in the number of part-time jobs, the majority of which are concentrated in the service sector. In Europe, women account for at least 80 percent of part-time jobholders, except in Italy, where the share is about 60 percent. In North America, approximately 70 percent of part-time workers are women. Other reasons contributing to the rise in female employment ratios include declining fertility rates and changing attitudes towards women in the workplace. Other internationally comparable series Three organizations compile internationally comparable series of unemployment rates for selected industrial nations. The bl s series, discussed in this article, adjusts unemploy ment rates to U.S. definitions of employment and unem ployment for nine foreign nations. The Paris-based o ecd publishes Standardized Unemployment Rates for 16 of its member countries.14 The Standardized Unemployment Rates are adjusted to International Labor Office ( ilo ) con cepts which are more general than U.S. concepts. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A third organization, e u r o s t a t , publishes comparable unemployment rates for European Community countries based on its own specific interpretation of ilo concepts. These concepts are close to U.S. concepts, but there are some differences. (See appendix.) The e u r o st a t rates are fundamentally different from those calculated by b ls and o e c d in that they are based on a European Community-wide survey which uses common concepts and definitions, al though the wording and ordering of questions vary from country to country.15 In addition, the data are centrally pro cessed and tabulated by e u r o s t a t . In contrast, the b ls and the o e c d series are primarily based on data collected in national surveys using national concepts and definitions. The data are processed by their respective statistical agen cies and are then adjusted by b ls and the o ec d to a common statistical base. However, for Germany and the Nether lands, b ls now uses e u r o st a t statistics to provide bench marks from 1983 onward. (See appendix.) The o e c d has also begun to use the e u r o st a t data for a number of coun tries. Table 6 compares the adjusted unemployment rates pre pared by these three organizations for 1983 to 1986. There are some differences in the rates published by each organiza tion. The b ls calculates its adjusted jobless rates on both a total labor force base and a civilian labor force base. The Table 6. Comparative unemployment rates, selected countries, 1983-86 bls C o u n try s e r ie s OECD S t a n d a r d iz e d C iv ilia n EUROSTAT s p r in g s u rv e y T o ta l U n e m p lo y m e n t b a s is b a s is R a t e s t o t a l b a s is 8.5 8.3 7.0 5.8 12.4 12.0 7.9 6.4 8.7 11.9 11.8 12.5 11.1 9.7 27.0 9.5 6.7 9.8 12.4 10.9 c iv ilia n b a s is 1 1983 France ...................................... Germany .................................. Italy......................................... Netherlands............................... United Kingdom.......................... 7.1 5.9 12.7 11.9 8.3 8.0 9.8 1984 France ...................................... Germany .................................. Italy......................................... Netherlands............................... United Kingdom.......................... 9.9 7.4 5.9 12.3 11.7 9.7 7.2 5.8 10.2 11.8 12.0 11.6 211.7 10.2 10.1 7.2 10.5 1985 France ...................................... Germany.................................. Italy......................................... Netherlands............................... United Kingdom.......................... 10.4 7.5 10.3 6.9 9.2 10.5 11.5 10.5 7.4 5.9 10.3 11.2 11.1 10.6 11.2 10.7 7.2 6.3 9.7 10.4 7.1 10.3 7.0 10.2 (3) 6.2 (3) 9.5 11.2 11.2 9.9 11.1 10.6 (3) 6.0 1986 France ...................................... Germany .................................. Italy......................................... Netherlands............................... United Kingdom.......................... 11.5 1Excludes conscripts but Includes career military. 2Break inseries. 3Not available. N o t e : b l s and o e c d data are annual averages; spring of each year. eu ro stat data relate to varying dates Inthe 47 MONTHLY LABOR REVIEW April 1988 • Labor Market Indicators in 10 Countries Standardized Unemployment Rates relate to the total labor force while the e u r o s t a t data exclude military conscripts, but include the career military. The reference period for the b l s and the o e c d series is an annual average while the e u r o s t a t data relate to various dates each spring. Another reason for the differences between the b l s and o e c d series is that b l s calculates adjustment factors by sex while the o e c d does not. Differences in the age limits also affect the data. The lower age limit of the b l s and the o e c d data varies from ages 14 to 16. The e u r o s t a t data relate to persons age 14 and over for all countries. With the exception of Italy, the three different series are moving closer together. In the case of Italy, b l s excludes from the unemployed all those who have not sought work within the past month. The o e c d Standardized Unemploy ment Rates did not make this adjustment; therefore, the 1 Historical data are available upon request. Selected historical data appear in the Current Labor Statistics section of the Review. Standardized Unemployment Rates have been higher than the b l s figures for Italy. The o e c d has now suspended its calculation of Standardized Unemployment Rates for Italy until further information becomes available. The e u r o s t a t series requires the registered unemployed to state they are seeking work and are currently available. However, they are not necessarily required to have been seeking work in the past 4 weeks. (Unemployed persons not registered are re quired to seek work in the past 4 weeks.) The b l s compar ative estimates for Italy currently exclude a large number of registrants who did not state that they sought work in the past month. Recent changes in the Italian survey question naire will provide additional data on jobseeking activities of the unemployed, b l s will reconsider its adjustment proce dure for Italy when the results of the new questionnaire become available. 8 Economic Outlook, 9Ib id ., p. 32. p. 28. 2 For further information, see International Comparisons o f Unemploy m en t , Bulletin 1979 (Bureau of Labor Statistics, 1978), appendix B; and Supplements to Bulletin 1979 (Bureau of Labor Statistics), appendix B . For some countries, annual adjustment factors are based on data from previous household surveys or provisional data from current household surveys. Therefore, data are preliminary for the United Kingdom from 1982 on ward, for Italy from 1984 onward, for Germany from 1985 onward, and for Australia and Sweden from 1986 onward. 12 Organization for Economic Cooperation and Development, Economic Survey o f The Netherlands (Paris, o e c d , February 1985), pp. 12-13. 3 National Institute of Economic Research, The Swedish Economy (Stockholm, National Institute of Economic Research, 1986), p. 50. 13 Organization for Economic Cooperation and Development, Economic Survey o f Italy (Paris, o e c d , July 1986), p. 37. 4 U .S. Embassy’s (Bonn) summary of the German Federal Employment Institute President Heinrich Franke’s press conference, October 1987. 5 U .S. Embassy (Paris), “Structural Changes in the French Labor Market Under the Conservatives and Economic Implications,” Mar. 10, 1987, p. 1. 6 Organization for Economic Cooperation and Development, Economic Outlook, June 1987, p. 29. 7 Bjorn Jonzon, “The Statistical Treatment o f Persons Affected by Labour Market Measures and Employment and Training Schemes in Swe den,” December 1985, p. 33. APPENDIX: 11 Ministerie Van Sociale Zaken en Werkgelegenheid, D e arbeidsmarkt [Ministry of Social Affairs and Labor, The Labor M arket] in September 1987, p. 4. 14 See Organization for Economic Cooperation and Development, Quar terly Labor Force S tatistics, appendix, each issue. In 1986, the o e c d suspended the updating o f current Standardized Unemployment Rates for Austria, Italy, and Switzerland. Standardized Unemployment Rates for previous years are still published for these three countries. 15 For further information, see Constance Sorrentino, “The Uses o f the European Community Labour Force Surveys for International Unemploy ment Comparisons,” Statistical Office of the European Communities Sem inar— The Community Labour Force Survey in the 1990’s, Luxembourg, Oct. 12-14, 1987. Revisions in comparative statistics Data for this article incorporate some revisions in the Bureau’s methods for constructing comparative labor force and unemployment statistics for Germany, Italy, the Nether lands, and the United Kingdom. This section will briefly discuss these revisions, recent changes in the Australian and Swedish labor force surveys, the lower age limits used by the Bureau for classifying persons in the labor force, and the adjustment of Japanese unemployment rates by sex. Germany and the Netherlands. For Germany and the Netherlands, the revisions reflect the replacement of labor force survey results tabulated by the German and Dutch 48 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 10 U .S. Embassy (Tokyo), Annual Labor Report 1 9 8 6 , Apr. 17, 1987, p. 14. statistical offices with those tabulated by the European Community Statistical Office, e u r o s t a t , beginning with 1983. The e u r o s t a t data for 1983 onward were judged by b l s to be closer to U.S. concepts than the national data for these countries. The e u r o s t a t data are based on raw national survey data which have been coded and processed by e u r o s t a t to con form to common definitions and classifications, e u r o s t a t requires unemployed persons to be currently available for work and to have actively sought work in the past 4 weeks— requirements not necessarily made in the national surveys. The e u r o s t a t current availability concept differs somewhat from the U.S. definition in that an unemployed person must be able to start work within 2 weeks of the reference week. Under the U.S. definition, they must be available during the reference period. In addition, certain groups are excepted from the test of job search in the past 4 weeks: the registered unemployed; persons awaiting the results of public sector recruitment exams; and persons seeking self-employment. However, the registered unemployed generally check with the employment offices on a monthly basis, and the number of persons in the other groups is probably not significant in either Germany or the Netherlands. Although the switch to the e u r o s t a t data provides better estimates for 1983 onward, it does introduce breaks in series at 1983. Unfortunately, the e u r o s t a t data prior to 1983 are on a different conceptual basis and cannot be used for mak ing comparative estimates. This discontinuity is small for Germany, but it is more significant for the Netherlands. For Germany, the impact of this change to a e u r o s t a t bench mark was to lower the adjusted unemployment rate by about 0.3 percentage point. For the Netherlands, the b l s revision also reflects the replacement of man-year employment data with data from the Dutch Survey of Employed Persons. Data from the survey of employed persons more accurately reflect the development of part-time employment. The im pact of these two changes has been to lower the adjusted Dutch jobless rate approximately 2 percentage points for 1983 onward. This is primarily because the Dutch labor force survey data did not exclude a significant number of registered unemployed persons who were not currently available. Italy. The Italian revisions reflect a change in the Italian Central Bureau of Statistics’ treatment of nonrespondents to the survey question on time of last job search, beginning in 1984. Prior to 1984, nonrespondents were separately enu merated. After 1984, this group was allocated among the various specified time intervals. The revised b l s adjusted series for 1959-83 performs a similar allocation for those years; the revised figures are approximately 0.5 percentage point higher than the previous estimates. Beginning in 1986, the Italian Central Bureau of Statistics revised its unemploy ment statistics to make them more consistent with e u r o s t a t standards, b l s has requested additional information on this change and may revise its historical estimates when further data become available. United Kingdom. The British revisions reflect the incor poration of data for Northern Ireland. For 1959-81, the previous Great Britain series was inflated to a United King dom basis by applying ratios of United Kingdom to Great Britain registered unemployment and employment figures. For 1982 onward, the estimates are based on the results of European Community labor force surveys for the United Kingdom. However, the benchmarks have been tabulated https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis by the British Department of Employment rather than EUROSTAT. The link between the old and new methods appears to be a good one which introduces only a slight break in series. The impact of these revisions resulted in a slight increase in the rates prior to 1981 because of higher unem ployment in Northern Ireland. However, rates for 1982 for ward are about 1 percentage point lower because adjustment factors are now based on more recent labor force survey results. Australia and Sweden. Changes in the Australian and Swedish household surveys result from their adoption of the Thirteenth International Conference of Labour Statisticians’ resolution regarding the treatment of unpaid family workers. The resolution recommended that unpaid family workers at work should be considered as employed, irrespective of the number of hours worked during the reference period. The United States did not adopt this resolution, and the U.S. treatment of unpaid family workers remains unchanged; in order to be classified as employed, unpaid family workers must work at least 15 hours during the reference week. Prior to April 1986 in Australia and January 1987 in Sweden, unpaid family workers also had to work 15 hours or more in the reference week to be classified as employed. In Australia, the impact of this change was a marginally lower unemployment rate. Historical data reflecting the re vised treatment of unpaid family workers have not been published. The Swedish household survey results are also affected by changes in the survey questionnaire and in the upper age limit for classifying persons in the labor force that were introduced in January 1986. New questions regarding cur rent availability were added and the period of active job seeking was reduced from 60 days to 4 weeks. For 1986, the combined impact of all the changes was to raise employment by 0.8 percent and to lower unemployment by 16 percent. The unemployment rate was lowered by 0.5 percentage point. In January 1986, the upper age limit of the survey was lowered from 74 years to 64. Data on persons aged 65-74 are collected one quarter each year, however, and b l s ad justs the Swedish data to include persons older than the upper age limit. The Swedish data presented in this article for 1986 and earlier years are on the old survey basis. The b l s is in the process of revising its historical estimates for Sweden to take these changes into account. Lower age limits. The foreign labor force and unemploy ment data analyzed in this article have been adjusted for comparability to U.S. concepts. The data are also generally adjusted to relate to the age at which compulsory schooling ends in each country. Thus, the BLS-adjusted data relate to the population 16 years and over in the United States, France, Sweden, and from 1973, the United Kingdom; 15 49 MONTHLY LABOR REVIEW April 1988 • Labor Market Indicators in 10 Countries years and over in Canada, Australia, Japan, Germany (until 1983), the Netherlands (from 1975-82), and the United Kingdom (prior to 1973); and 14 years and over in Italy and the Netherlands (prior to 1975). With the incorporation of data from the European Community Labor Force Surveys for 1983 onward for Germany and the Netherlands, the lower age limit reverted to 14 years. However, there are few 14-year-olds in the labor force in either Germany or the Netherlands. The working-age population coincides with the lower age limits of the adjusted labor force, employment, and unem ployment statistics, except for Germany and the Netherlands for 1983 onward. For Germany and the Netherlands, work ing age relates to the population 15 years and over for 1983 onward. The institutionalized working age population is excluded in all countries studied except Japan and Germany. Japanese unemployment rates by sex. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis There are a number of differences between U.S. and Japanese unemployment concepts, but the overall Japanese unemployment rate is virtually unchanged when U.S. concepts are applied. How ever, there is a marked difference in the adjusted unemploy ment rates for men and women. (See Constance Sorrentino, “Japan’s low unemployment: an in-depth analysis,” Monthly Labor Review, March 1984, pp. 18-27; and “Japanese unemployment: b l s updates its analysis,” Monthly Labor Review, June 1987, pp. 47-53.) Unemployment rates by sex for Japan are based on special labor force surveys taken in March of the 1977-80 period and February of the 1984-86 period. These special surveys probe deeper into the labor force status of the population than do the regular monthly surveys. The unemployment rates for the 1970-76 period are based on March 1977 survey data and rates for the 1981-83 period are based on March 1980 and February 1984 survey data. A note on communications The Monthly Labor Review welcomes communications that supplement, challenge, or expand on research published in its pages. To be considered for publication, communications should be factual and analytical, not polemical in tone. Communications should be addressed to the Editor-inChief, Monthly Labor Review, Bureau of Labor Statistics, U.S. Depart ment of Labor, Washington, DC 20212. Productivity Reports Productivity in selected industries and government services in 1986 A r t h u r S. H e r m a n Labor productivity, as measured by output per employee hours, increased in 1986 in more than three-fourths of the industries for which current data are available. In compari son, less than two-thirds of the industries posted gains in 1985. This article updates to the most current year all indexes included in the industry productivity measurement program of the Bureau of Labor Statistics. It extends the measures through 1986, and includes data on industry multifactor productivity measures through 1985 and data on Federal, State, and local government productivity measures through 1986. Table 1 shows labor productivity trends in the industries measured by the Bureau and includes measures for addi tional industries: cotton and synthetic broad woven fabrics; industrial inorganic chemicals; industrial organic chemicals; nonelectric heating equipment; semiconductors and related devices; retail hardware stores; department stores; and auto motive repair shops.1 Changes in industry labor productivity Manufacturing. Among major manufacturing industries, both motor vehicles and steel registered small productivity gains in 1986. In motor vehicle manufacturing, productivity grew by 1.8 percent. Although output fell 2.2 percent in 1986, mainly because of a decline in the automobile seg ment of the industry, employee hours fell even more, drop ping 4.0 percent. The productivity gain was the sixth con secutive one in this industry. In steel manufacturing, productivity was up 1.7 percent, as output dropped 5.9 percent, while employee hours fell 7.6 percent. Demand was off from automobile firms and from capital goods pro ducers, such as the agricultural and industrial machinery industries, and other markets. The steel industry continued to eliminate less efficient plant and equipment. Steel manu facturing has recorded four consecutive annual increases in productivity. A number of important manufacturing industries posted substantial gains in productivity in 1986, including Arthur S. Herman is an economist in the Office of Productivity and Tech nology, Bureau o f Labor Statistics. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis petroleum refining (12.0 percent); sawmills (11.0 percent); and paper, paperboard, and pulp mills (7.1 percent). These industries recorded output growth in 1986. In petroleum refining, output was up 5.8 percent as demand was aided by a sharp drop in the price of petroleum products and hours fell off 5.6 percent as a number of less efficient refineries were closed. Sawmills posted an output gain of 11.5 per cent, as a result of increased demand from the single-family housing market, while hours grew 0.5 percent. In the paper industry, output gained 5.9 percent, as demand was stimu lated by favorable overall economic conditions, while hours were off 1.1 percent. Only a small number of manufacturing industries regis tered productivity declines in 1986. These were metal form ing machine tools (—8.7 percent); steel foundries and non wool yam mills (both —3.9 percent); oilfield machinery ( - 3 .4 percent); gray iron foundries ( - 1 .9 percent); and cigarettes (—0.2 percent). Mining. Among the mining industries, coal mining had a productivity gain of 8.2 percent based on a small output increase of 0.3 percent, while hours fell 7.3 percent. Be tween 1985 and 1986, demand for coal remained fairly stable while the industry continued to close less efficient mines. Nonmetallic minerals posted a productivity advance of 1.0 percent; output dropped 0.6 percent, as declining demand from the agricultural chemicals market more than offset a gain from the constmction materials market, and hours fell 1.6 percent. In copper mining (recoverable metal), productivity was up by a large 22.5 percent, as output grew 4.2 percent while hours dropped 14.9 percent. On the other hand, iron mining (usable ore) had a decline in productivity of 6.3 percent; output fell 20.6 percent because of a continued decline in demand from the steel industry, while hours dropped 15.2 percent. Transportation and utilities. Productivity changes were mostly positive among transportation and utility industries. Railroads had a large productivity gain of 11.0 percent; output grew 1.9 percent while employee hours continued to decline (—8.2 percent). In air transportation, productivity grew 1.2 percent. Air traffic was up significantly in 1986, and output grew 8.8 percent, while employment also was up (7.6 percent). Petroleum pipelines had a gain in productivity of 2.8 percent, as output grew 1.6 percent while employee hours fell 1.1 percent. In telephone communications, pro ductivity was up 6.0 percent based on an output gain of 2.2 percent and a drop in employee hours of 3.6 percent. Pro51 MONTHLY LABOR REVIEW Table 1. [1977=100] sic April 1988 • Productivity Reports Iiidexes of output per employee hour in selected industries, 1981-86, and percent changes, 1985-86 and 1981-86 Code1 In d u s t r y 1981 1982 1983 1984 1985 19862 P e rc e n t A v e ra g e a n n u a l change, p e rc e n t c h an g e, 1985-86 1981-86 M in in g 1011 1011 1021 1021 111,21 121 14 142 Iron mining, crude ore .......................................................... Iron mining, usable ore .............................................................. Copper mining, crude o re .......................................................... Copper mining, recoverable metal ................................................................ Coal m ining.......................................................... Bituminous coal and lignite m in in g ........................................... Nonmetallic minerals, except fu e ls ................................................... Crushed and broken stone....................................................................... 132.8 130.6 102.0 97.7 122.2 100.9 98.2 106.4 116.2 119.2 122.7 94.7 96.7 120.0 112.3 119.5 96.5 125.6 135.3 107.9 108.6 89.3 94.1 139.0 138.6 129.9 130.9 136.1 136.9 98.2 103.9 173.3 171.7 140.3 153.9 151.3 152.3 105.5 105.8 187.9 187.9 164.2 193.1 154.0 154.6 107.6 104.5 115.9 123.4 117.0 125.6 99.5 130.3 147.7 113.1 115.7 132.8 122.9 114.9 129.3 119.5 130.1 98.8 133.2 152.3 178.3 176.1 201.4 236.5 166.7 168.1 108.7 104.8 -5.1 -6.3 22.7 22.5 122.1 10.7 11.0 1.0 14.6 19.1 7.2 7.2 38 .3 2.1 2.2 1.2 2.4 2.9 1.2 43.1 144.9 126.0 122.9 133.8 (3) (3) (3) (3) (3) (3) 134.1 (3) 3.4 (3) (3) (3) (3) (3) (3) 9.1 (3) 93.2 192.1 132.5 106.8 99.7 94.7 108.8 137.9 103.2 198.4 143.8 108.5 105.5 108.7 100.7 130.3 (3) (3) (3) (3) 109.1 111.4 107.4 137.0 (3) (3) (3) (3) 3.4 2.5 6.7 5.1 6.0 16.0 5.2 .3 -3 .9 3.1 2.7 7.0 3.6 120.0 149.0 114.7 111.5 150.0 130.3 118.6 129.2 154.5 (3) (3) (3) 1.1 -.2 121.1 145.3 113.4 111.7 129.3 123.9 118.3 134.5 139.2 85.7 89.1 121.3 2.5 118.0 128.5 126.8 87.9 94.3 138.3 110.3 107.2 141.4 119.9 119.7 129.6 132.3 88.7 94.2 103.9 129.6 112.3 105.6 108.9 128.2 112.5 104.5 124.7 123.9 109.0 116.7 96.2 128.2 120.3 107.2 99.6 122.5 (3) (3) 116.9 (3) (3) (3) 113.4 117.2 (3) (3) 128.8 (3) 103.3 127.3 (3) (3) 3.9 (3) (3) (3) 4.0 .4 (3) (3) 7.1 (3) 3.7 3.9 43 0 45 g .3 1.9 4- 1 43 5 3.8 44 1 - 6 3.1 102.6 (3) (3) (3) (3) 148.2 114.8 (3) (3) (3) (3) (3) (3) 9.1 44 5 413.3 47 6 43 2 5.3 8.2 8.7 M a n u f a c t u r in g 2011,13 2013 2016,17 2026 203 2033 204 2041,45 2041 2043 Red meat products ...................................................... Meat packing plants............................................................................. Sausages and other prepared meats ............................................. Poultry dressing and processing................................................. Fluid m ilk ................................................................................. Preserved fruits and vegetables.......................................................... Canned fruits and vegetables.............................................................. Grain mill products.................................................................. Flour (including flour mixes) and other g ra in s ......................................... Flour and other grain mill products.......................................................... Cereal breakfast foods.............................................................. 107.9 113.9 95.0 116.4 128.0 99.2 100.7 110.9 99.1 96.7 109.3 2044 2046 2047,48 205 2061,62,63 2061,62 2063 2082 Rice m illin g ....................................................................... Wet corn m illing..................... ................................................... Prepared feeds for animals and fow ls............................................. Bakery products..................................................................... Sugar ............................................................................................ Raw and refined cane sugar ................................................................ Beet sugar................................................................................... Malt beverages ................................................................ 117.9 137.5 110.7 96.2 98.8 98.8 98.7 118.3 2086 2111,21,31 2111,31 114.3 100.5 99.6 107.3 107.4 2251,52 2281 2421 2431 2434 2435,36 Bottled and canned soft drin k s ............................................................ Total tobacco products............................................................ Cigarettes, chewing and smoking tobacco ......................................... C ig a rs...................................................................................... Cotton and synthetic broad woven fabrics...................................................... Hosiery .......................................................................................... Nonwool yarn mills ............................................................ Sawmills and planing mills, general ................................................... Millwork....................................................................... Wood kitchen cabinets...................................................... Veneer and plywood ..................................................................... 103.1 107.9 96.4 94.8 106.9 2435 2436 251 2511,17 2512 2514 2515 252 2521 2522 2611,21,31,61 2643 2651 2653 Hardwood veneer and plywood ......................................... Softwood veneer and plyw ood................................................. Household furniture................................................................................. Wood household furniture ........................................................ Upholstered household furniture........................................................ Metal household furniture............................................................ Mattresses and bedsprings ................................................................ Office furniture.................................................................................... Wood office furniture ........................................................................... Metal office furniture .......................................................... Paper, paperboard, and pulp mills ................................................. Paper and plastic bags ...................................................... Folding paperboard boxes ........................................................ Corrugated and solid fiber b o x e s ............................................... 281 2812 2816 2819 pt 2823,24 2834 2841 2844 2851 2869 2911 3011 3079 314 Industrial inorganic chemicals ............................................... Alkalies and chlorine ...................................................... Inorganic pigments ....................................................... Industrial inorganic chemicals, n.e.c................................................... Synthetic fibers .................................................................. Pharmaceutical preparations ...................................................... Soaps and detergents ...................................................... Cosmetics and other toiletries ........................................................................... Paints and allied products .............................................................. Industrial organic chemicals, n.e.c........................................... Petroleum refining .................................................................... Tires and inner tu b e s ........................................................ Miscellaneous plastics products............................................................ Footwear............................................................ 91.4 95.3 105.1 89.3 120.9 104.2 107.3 76.1 99.8 103.9 83.7 118.1 98.5 95.6 3221 3241 325 3251,53,59 3251 3253 Glass containers.............................................................. Hydraulic cem ent.................................................................. Structural clay products ..................................................................... Clay construction products.............................................................. Brick and structural clay tile ........................................................ Ceramic wall and floor tile .......................................................... 91.1 100.7 97.3 84.3 125.9 2011 2121 2211,21 See footnotes at end of table. 52 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 122.0 121.0 112.3 104.1 115.0 104.5 138.8 124.9 103.3 90.4 87.6 94.8 122.6 118.3 100.7 99.5 111.4 112.5 114.2 118.2 115.1 86.1 96.1 114.4 100.0 131.7 142.4 110.4 112.2 125.5 117.7 110.4 118.8 103.3 156.9 127.5 106.9 98.6 100.0 94.5 131.3 127.0 105.1 104.1 112.3 121.6 100.3 101.4 110.1 111.8 122.1 127.3 103.0 97.3 110.5 98.7 114.0 108.8 99.5 114.0 104.4 92.3 104.5 109.8 104.7 98.2 115.9 107.5 104.3 107.4 90.3 116.6 111.3 95.3 104.2 111.9 110.2 110.1 86.3 100.8 96.7 80.8 103.6 107.0 100.9 84.0 106.5 87.2 79.4 128.2 110.1 106.4 105.8 94.0 103.9 121.7 109.2 108.8 122.1 121.3 109.7 117.7 96.0 130.4 119.5 102.9 104.5 114.0 105.6 102.4 118.9 112.0 93.9 94.2 127.1 104.0 86.9 126.2 115.2 97.7 86.2 111.5 105.3 81.8 136.1 107.3 103.9 102.6 108.5 108.4 105.0 103.3 101.0 88.6 85.5 126.2 128.1 122.8 121.0 106.0 146.3 125.7 97.5 125.3 114.3 101.8 112.6 122.6 147.4 132.7 95.3 135.8 111.9 103.3 86.7 117.3 112.4 85.2 119.0 114.0 92.5 146.8 110.5 105.7 146.7 113.0 107.3 128.0 125.3 127.0 128.3 102.6 111.2 111.8 110.4 93.3 144.0 111.7 99.5 131.1 131.7 102.2 122.1 11.0 (3) (3) (3) 44 4 43 1 44.7 46 5 45 9 64 45.4 4 -3.7 411.2 46 0 42.8 2.8 3.5 2.1 2.8 -.1 4.5 7.1 4- 2.0 4-1 4 43.1 41.9 43.4 2.5 42 2 2.6 1.8 (3) (3) 4.1 (3) 4- 7 (3) 114.9 148.1 (3) 107.4 12.0 1.0 135.8 132.6 115.9 116.2 103.6 (3) 6.9 3.4 3.7 4.0 4.1 (3) (3) .1 42 8 4.0 44 3 7.3 47 42.8 1.8 5.2 8.8 3.0 3.5 4.3 42.0 Table 1. Continued—Indexes of output per employee hour in selected industries, 1981-86, and percent changes, 1985-86 and 1981-86 [1977=100] sic In d u s t r y Code1 1981 3255 3271,72 3273 331 3321 3324,25 3331,32,33 3331 3334 3351 3353,54,55 Clay refractories ......................................................................................................... Concrete products....................................................................................................... Ready-mixed concrete................................................................................................ Steel ............................................................................................................................ Gray iron foundries ..................................................................................................... Steel foundries ........................................................................................................... Primary copper, lead, and z in c ................................................................................... Primary copper ........................................................................................................... Primary aluminum ....................................................................................................... Copper rolling and drawing ........................................................................................ Aluminum rolling and drawing ................................................................................... 3411 3423 3433 3441 3442 3465,66,69 3465 3469 3494 3498 3519 352 3523 3524 3531 3532 3533 3541,42 3541 3542 3545 Metal cans................................................................................................................... Hand and edge tools .................................................................................................. Heating equipment, except electric............................................................................. Fabricated structural m etal.......................................................................................... Metal doors, sash, and trim ....................................................................................... Metal stampings ......................................................................................................... Automotive stampings ................................................................................................ Metal stampings, n.e.c.................................................................................................. Valves and pipe fittings .............................................................................................. Fabricated pipe and fittings ....................................................................................... Internal combustion engines, n.e.c............................................................................... Farm and garden machinery ..................................................................................... Farm machinery and equipment................................................................................. Lawn and garden equipment ..................................................................................... Construction machinery and equipment .................................................................... Mining machinery and equipment............................................................................... Oilfield machinery and equipment............................................................................... Machine tools ............................................................................................................. Metal cutting machine tools ........................................................................................ Metal forming machine tools ...................................................................................... Machine tool accessories............................................................................................ 107.8 95.2 94.6 98.5 90.4 101.4 105.0 98.0 105.4 93.5 93.2 95.1 94.1 3561,63 3561 3562 3563 3585 3612 3613 3621 3631,32,33,39 3631 3632 3633 3639 3641 3645,46,47,48 3651 3674 371 3825 Pumps and compressors............................................................................................ Pumps and pumping equipment................................................................................. Ball and roller bearings .............................................................................................. Air and gas compressors............................................................................................ Refrigeration and heating equipment ......................................................................... Transformers............................................................................................................... Switchgear and switchboard apparatus ..................................................................... Motors and generators................................................................................................ Major household appliances........................................................................................ Household cooking equipment................................................................................... Household refrigerators and freezers ......................................................................... Household laundry equipment ................................................................................... Household appliances, n.e.c......................................................................................... Electric lamps ............................................................................................................. Lighting fixture s........................................................................................................... Radio and television receiving se ts ............................................................................. Semiconductors and related devices ......................................................................... Motor vehicles and equipm ent.................................................................................... Instruments to measure electricity ............................................................................. 102.4 101.7 94.3 106.8 99.4 106.9 99.5 100.4 107.6 105.7 117.4 103.9 100.4 106.9 88.7 133.6 171.6 93.1 111.9 1982 1983 111.1 100.0 121.6 88.5 95.4 91.0 90.6 90.9 93.7 89.0 128.0 128.5 103.0 105.4 99.2 97.6 93.7 116.8 98.3 89.9 141.2 138.3 111.5 112.0 92.7 91.6 118.6 124.4 103.8 97.3 96.8 101.0 96.1 97.8 104.7 96.5 98.9 89.4 102.0 120.2 110.4 1984 115.1 99.2 96.3 131.3 106.8 98.8 148.4 151.9 125.4 127.4 116.2 114.1 100.5 97.4 139.5 104.2 95.6 181.3 189.8 125.4 121.3 115.9 122.9 90.1 125.8 90.6 97.7 117.7 106.3 104.7 118.5 92.8 102.3 99.5 96.0 98.1 106.7 89.3 101.3 89.5 82.0 94.9 92.6 106.9 88.9 91.0 98.4 88.5 89.2 85.0 89.1 120.4 89.3 93.2 103.0 99.7 104.7 122.3 89.3 103.6 87.1 95.9 93.1 83.3 100.2 106.1 104.4 94.4 109.7 105.4 97.6 107.4 107.9 123.6 131.9 127.5 117.5 109.8 131.9 102.0 100.1 99.6 101.3 102.4 108.6 102.0 107.9 102.8 95.3 92.0 111.9 110.4 127.9 96.1 105.1 97.9 99.8 105.2 104.6 111.4 88.2 102.6 91.3 91.8 83.5 81.1 87.4 83.0 98.5 87.5 94.0 93.3 93.7 95.4 86.8 97.7 86.3 105.2 100.9 99.1 106.1 104.3 117.6 112.6 120.8 116.1 105.4 94.7 108.4 91.0 163.9 197.9 96.9 119.2 127.1 112.2 103.7 124.8 96.3 196.1 211.5 109.6 121.8 1985 102.2 236.9 229.2 115.7 133.7 120.1 90.1 104.5 90.4 102.7 101.7 98.8 115.7 104.1 101.4 80.1 92.0 96.4 79.5 92.7 108.3 104.8 93.2 111.9 103.7 99.3 110.9 110.5 127.2 135.6 136.8 118.2 110.0 126.9 107.0 249.8 206.1 121.1 130.4 19862 117.3 (3) (3) 141.9 102.2 91.9 200.9 214.8 128.2 129.9 125.8 129.5 (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) 105.3 (3) 77.4 95.2 104.7 72.6 (3) (3) (3) 93.5 (3) (3) 101.9 121.2 (3) 135.7 144.8 146.1 123.3 119.3 128.7 (3) 256.9 218.4 123.3 (3) P e rc e n t A v e ra g e a n n u al change, p e rc e n t c h a n g e , 1 9 8 5 -8 6 1 9 8 1 -8 6 2.8 1.8 (3) (3) 1.7 -1.9 -3.9 10.9 13.2 “ 3.5 “ 1.0 7.7 2.2 7.1 8.5 2.9 (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) 1.2 (3) -3.4 3.5 8.6 -8.7 (3) (3) (3) 0.3 (3) (3) 2.6 9.3 (3) 6.7 6.8 6.8 4.3 8.5 1.4 (3) 2.8 6.0 1.8 (3) 2.6 .9 11.2 12.1 5.2 5.7 5.4 3.2 «-1.3 “ 0.6 “ 4.5 “ 4.0 “ 1.8 “ 4.6 “ -0.9 “ - 0.2 “ 0.2 “ 4.0 “ 2.4 “ 2.2 “ 3.2 3.1 “ 1.5 - 6.0 0.5 1.9 -3.3 “ - 1.2 “ 2.2 “ 1.8 1.1 “ 1.7 “ 1.4 - 0.8 3.7 “ 2.5 4.9 6.5 4.6 3.6 4.0 4.2 “ 5.0 14.4 4.1 6.3 “4.3 O th e r 401 401 4111,31,414 pt 4213 4213 4511,4521 pt 4612,13 4811 491.492.493 491.493 pt 492,493 pt 5251 5311 54 5511 Railroad transportation, revenue tra ffic ....................................................................... Railroad transportation, car m ile s ............................................................................... Class I bus carriers ..................................................................................................... Intercity trucking ......................................................................................................... Intercity trucking, general freight................................................................................. Air transportation5 ....................................................................................................... Petroleum pipelines..................................................................................................... Telephone communications ........................................................................................ 5541 56 5611 5621 5651 5661 57 571 572,3 Gasoline service stations6 .......................................................................................... Apparel and accessory stores6 ................................................................................... Men’s and boys’ clothing stores6 ............................................................................... Women’s ready-to-wear stores6 ................................................................................. Family clothing stores6 ................................................................................................ Shoe stores6 ............................................................................................................... Furniture, home furnishings, and equipment stores6 ................................................. Furniture and home furnishings stores6 .................................................................... Appliance, radio, television, and music stores6 .......................................................... Electric utilities............................................................................................................. Gas utilitie s................................................................................................................. Hardware stores6 ......................................................................................................... Department store s....................................................................................................... Retail food stores6 ....................................................................................................... Franchised new car dealers........................................................................................ 111.5 107.6 90.7 98.7 92.5 104.9 86.0 124.4 94.4 93.0 98.1 107.3 106.0 95.2 98.1 105.8 127.1 115.6 139.0 131.4 113.0 112.6 101.2 132.4 115.8 110.1 98.8 93.3 86.8 114.9 89.2 129.1 89.3 89.5 89.0 108.9 107.4 93.5 100.4 110.7 130.9 115.7 158.2 139.6 108.9 109.2 97.6 128.7 141.9 128.9 95.4 101.0 92.5 126.8 94.3 145.1 88.1 90.9 81.1 107.0 114.9 93.9 109.4 118.1 137.8 120.1 169.7 149.8 110.0 118.4 104.1 143.4 152.6 137.7 90.9 102.5 94.2 131.7 104.5 143.0 91.4 94.4 83.6 162.1 138.9 88.2 93.6 110.4 97.2 90.5 136.5 104.9 149.9 90.5 93.5 82.1 111.4 125.0 94.2 109.7 121.0 122.6 146.6 127.2 178.4 148.1 116.5 128.1 112.9 154.7 152.2 133.2 187.8 142.5 128.1 131.0 108.4 172.8 112.8 122.1 179.9 148.2 (3) (3) (3) 138.1 107.8 158.9 88.9 94.6 75.3 118.1 130.3 93.0 111.3 126.6 162.8 144.3 206.6 141.3 141.1 141.2 114.3 191.8 11.0 6.7 (3) (3) (3) 1.2 2.8 6.0 - 1.8 1.2 -8.3 6.0 4.2 -1 .3 1.5 3.3 7.0 8.3 10.0 10.4 7.0 “ -1.4 “ 0.6 “ 0.4 5.7 5.0 4.8 - 0.6 0.7 -4.3 1.7 4.5 -0 .3 2.6 3.6 5.1 4.6 7.5 - 0.8 1.2 10.1 4.8 5.1 2.9 8.4 7.8 5.4 11.0 See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 53 MONTHLY LABOR REVIEW April 1988 • Productivity Reports Table 1. Continued—Indexes of output per employee hour in selected industries, 1981-86, and percent changes, 1985-86 and 1981-86 [1977=100] sic Code1 58 5912 592 602 7011 721 723,724 723 753 In d u s t r y 1981 Eating and drinking places6 ........................................................................................ Drug and proprietary stores6 ...................................................................................... Liquor stores6 ............................................................................................................. Commercial banking ................................................................................................... Hotels, motels, and tourist courts6 ............................................................................. Laundry and cleaning services6 .......................................................... ....................... Beauty and barber shops6 .......................................................................................... Beauty shops6 ............................................................................................................. Automotive repair shops6 ............................................................................................ 1 As defined in the Standard Industrial Classification Manual, 1972, published by the Office of Management and Budget. 2 Preliminary. 3 Not available. 4 Percent change, 1981-85. 5 Output per employee. 6 Output per hour of all persons. ductivity in electric utilities grew 1.2 percent, with output up 2.2 percent and hours up 1.1 percent. On the other hand, gas utilities posted a productivity decline of 8.3 percent; output fell 11.1 percent partly because of a warm winter and the shift of some customers to cheaper oil heat. Employee hours were off 3.1 percent. Trade and services. Productivity changes were mixed among the trade and service industries. Furniture, home furnishings, and equipment stores posted a 7.8-percent pro ductivity gain, as output grew 9.3 percent while hours were up 3.8 percent. The demand for furniture and appliances was up because of the expansion in new and existing home sales, while home electronics also had a good year, fueling the large output gain. The appliance, radio, and t v compo nent of this industry recorded an 11.0-percent productivity gain. Apparel and accessory stores had a 7.0-percent gain in productivity; output was up 9.1 percent, as sales were good in all types of apparel stores; and all person hours grew 2.0 percent. Changes in productivity among the components of this industry ranged from 10.1 percent in shoe stores to —0.8 percent in family clothing stores. The gasoline service station industry posted a 3.3-percent gain as output grew 5.0 percent, helped by lower gasoline prices, while hours were up 1.6 percent. Both eating and drinking places and liquor stores had 3.0-percent productivity increases, while new car dealers had a gain of 1.5 percent, and beauty and barber shops grew 0.2 percent. Productivity declines were posted by a number of trade and service industries. There was a decline of 1.3 percent in retail food stores. Output was up 1.8 percent while hours grew 3.1 percent, as the industry continued to provide more service-oriented operations such as delicatessens, salad bars, in-store bakeries, pharmacies, and photo departments. Other industries with declines in productivity were laundries and cleaning services (—2.4 percent), drug stores (- 3 .3 percent), and hotels and motels (—4.8 percent). 54 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1982 97.0 107.6 103.7 90.5 91.6 96.6 107.9 107.8 93.2 88.1 90.2 108.3 113.1 87.7 109.2 114.7 93.6 88.8 1983 97.1 110.1 101.7 101.7 95.4 90.1 114.1 120.0 86.2 1984 94.9 105.0 99.1 104.6 102.1 92.1 103.9 112.3 88.5 1985 93.5 100.3 105.9 109.2 97.5 87.0 98.5 104.0 96.2 19862 96.3 97.0 109.1 (3) 92.8 84.9 98.7 103.2 94.1 P e rc e n t A v e ra g e a n n u al change, p e rc e n t c h a n g e , 1 9 8 5 -8 6 1 9 8 1 -8 6 3.0 -3 .3 3.0 (3) -4.8 -2 .4 -0.4 - 2.2 0.5 45.0 - 1.2 - 0.8 -2 .5 -2.4 -0.9 0.2 - 0.8 - 2.2 N o t e : 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 contribution 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, n.e.c. = not elsewhere classified. Trends, 1981-86 A large majority of the measured industries recorded av erage annual gains in productivity over the 1981-86 period. Copper mining (recoverable metal) posted the highest rate of growth in the last 5 years, averaging 19.1 percent a year. Intense international competition in recent years has resulted in improved mining methods and the shutdown of older, less efficient mines. The radio and television receiving sets in dustry experienced the second highest rate of gain during the 1981-86 period— 14.4 percent per year. Productivity growth in this highly competitive industry was aided by thewidespread use of automated production technology and the closing of less efficient plants. Other industries with high rates of gain during 1981-86 include: alkalies and chlorine (13.3 percent, 1981-85); primary copper, lead, and zinc (11.2 percent); wet com milling (11.2 percent, 1981-85); iron mining (usable ore) (11.0 percent); and railroad trans portation (revenue traffic) (10.4 percent). However, several industries showed marked declines in productivity in the 1981-86 period. Among these, the oil field machinery industry recorded the greatest falloff, de clining at a rate of 6.0 percent. The industry faced a sharp drop in demand for its products stemming from a downward movement in the price of crude oil. Falling output coupled with the industry’s made-to-order, labor intensive opera tions, aggravated the productivity decline. Additionally, the gas utilities industry was also among those industries that had a marked falloff in productivity ( —4.3 percent annu ally). During the 1981-86 period, the output of this industry fell at a rate of 5.0 percent because of a decline in average use per customer. There was only a minimal decline in employee hours due to an increase in the number of cus tomers. Thus, productivity declined substantially. Other in dustries with substantial declines were: rice milling ( —3.7 percent, 1981-85); metal forming machine tools (—3.3 per- cent); beauty and barber shops (—2.5 percent); and drug stores ( - 2 .2 percent). Industry multifactor productivity Measures of multifactor productivity are presented for the steel and motor vehicles industries. These industry measures are the first to be published from the Bureau’s industry multifactor productivity project. This is an ongoing program and measures for additional industries will be published as they are completed.2 In multifactor productivity measures, output is related to combined inputs of labor, capital, and intermediate pur chases. Multifactor productivity is equal to output per hour adjusted to remove the effects of changes in capital per hour and intermediate purchases per hour (materials, fuels, elec tricity, and services). These effects are measured as the change in the nonlabor to labor input ratio, weighted by the nonlabor input’s share in total output. The capital effect, for example, is the change in the capital-labor ratio weighted by capital’s share in output. Multifactor productivity measures still show the effect of many influences such as economies of scale, capacity utilization, skill and effort of the work force, and technological change. The multifactor measures for the steel and motor vehicles industries are available through 1985. Because these meas ures were greatly affected by cyclical changes in the econ omy, the periods from the last peak forward are analyzed here, rather than the last 5 years as done for the other measures. For the steel industry, the period 1979-85 is discussed while for the motor vehicles industry, 1978-85 is covered. Table 2 shows multifactor productivity and related data for these periods for the two industries. Steel. Multifactor productivity in the steel industry grew at an average annual rate of 3.4 percent per year between 1979 and 1985, as output fell at a rate of 6.1 percent, and combined inputs fell more steeply at a 9.2-percent rate. This performance can be compared with growth of 4.8 per Table 2. cent per year in output per hour in steel manufacturing over the same period. The difference between the growth rate of labor productivity (output per hour) and that of multifactor productivity was attributable to a 0.3-percent average an nual growth in the capital effect (the change in the capital-labor ratio weighted by the capital share of about 15 percent) and a 1.1-percent intermediate purchases effect (the change in the ratio of intermediate purchases to labor weighted by the intermediate purchases share of about 50 percent). Some large, integrated mills with obsolescent plant and equipment closed, as the restructuring of the industry con tinued during the 1979-85 period, while diffusion of tech nological changes such as the electric arc furnace and the continuous casting steel making method increased. Labor hours fell faster (—10.4 percent) than capital ( - 3 .2 percent) or intermediate purchases (—8.8 percent) in this period, and both the capital-labor and intermediate purchases-labor ra tios increased. Motor vehicles. Multifactor productivity in the motor ve hicles and equipment industry grew at an average annual rate of 0.8 percent per year between 1978 and 1985, as output gains averaged 1.7 percent per year and combined inputs rose at a 0.9-percent rate. Labor productivity (output per hour) grew by 3.5 percent per year. The difference between the growth of labor productivity and that of multi factor productivity was almost entirely attributable to the intermediate purchases effect. Changes in the capital-labor ratio were so slight as to have virtually no effect on labor productivity over the period. Both labor and capital declined during this period, while intermediate purchases increased. Between 1978 and 1985, the intermediate purchases effect made up the entire difference between labor productivity and multifactor productivity and, in fact, was a larger source of the growth in labor productivity than was multifactor productivity. Multifactor and related productivity indexes1 for selected industries, 1978 or 1979-85 [1977=100] SIC Code In d u s try a n d m e a s u re 1978 1979 1980 1981 1982 1983 1984 19852 A v e ra g e a n n u al p e rc e n t c h a n g e 1 9 7 9 -8 5 331 Steel: Multifactor productivity................................................. Output per h o u r............................................................ Output per unit of capital ............................................. Output per unit of intermediate purchases ................. — — — 104.4 106.6 114.3 101.5 102.4 105.8 99.5 100.7 101.6 112.1 108.2 95.5 96.4 98.1 72.5 96.8 115.0 119.5 82.6 114.0 119.4 131.3 95.4 113.6 123.6 140,5 97.3 116.0 3.4 4.8 -2.9 3.0 1 9 7 8 -8 5 371 Motor vehicles and equipment: Multifactor productivity................................................. Output per h o u r............................................................ Output per unit of capital ............................................. Output per unit of intermediate purchases ................. 100.1 99.6 98.0 100.7 98.8 97.5 86.8 102.0 89.6 89.8 61.8 95.0 90.3 92.0 62.9 95.1 90.9 96.2 57.2 95.6 96.7 109.4 80.7 94.1 101.1 105.1 .8 115.3 104.1 93.9 121.2 3.5 3.0 110.9 96.7 -.9 1 The output measures underlying the productivity indexes relate to the total net production of the industry. They do not relate to the specific output of any single factor of production. 2 Preliminary. N o t e : Dashes indicate data are not available. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 55 MONTHLY LABOR REVIEW April 1988 • Productivity Reports Government productivity Measures of output per employee year for the Federal Government and selected State and local government serv ices are included here for the first time. Data are presented from fiscal years 1981-86 for most series and are shown in table 3.3 Federal. Output per employee year increased 1.7 percent in fiscal 1986 in the measured sample of Federal Govern ment organizations. This gain reflected a 2.3-percent in crease in output and a 0.6-percent increase in employee years. The 1986 productivity rate surpassed the 1985 rate of 0.7 percent. The measure covers a sample of Federal agencies drawn from 60 agencies and representing 380 organizational units in fiscal 1986. The organizations included 2.0 million exec utive branch civilian employees representing 68 percent of the total Federal civilian labor force. Agency employee cov erage ranged from 100 percent to 1.2 percent. The Federal organizational units are divided into 28 func tional groups based on similarity of tasks performed (for example, auditing, medical, personnel, and transportation) to better identify and understand the forces which affect Federal productivity. The change in output per employee Table 3. year for the 28 functions in 1986 ranged from an increase of 8.4 percent for regulation compliance and enforcement to a decline of 7.5 percent for traffic management. Productivity increased in 19 functions and decreased in 9. The regulation compliance and enforcement function in cludes 64 organizations that enforced Federal rules, regula tions, and laws in 1986. Organizational examples include coal mine inspection, hazardous substance response, cus toms, and consumer product safety. The 8.4-percent in crease in productivity in this function in 1986 was driven by a 9.1-percent increase in output; labor increased 0.7 per cent. The 1985 increase in productivity was 2.8 percent. The traffic management function, which includes those organizations responsible for arranging for the movement of people and goods, showed a 7.5-percent drop in productiv ity in 1986. Both output and employee years declined in 1986 but the 8.1-percent decrease in output exceeded the 0.7-percent drop in employment. Each of the three organi zational units comprising this function showed decreasing output in 1986. The postal service function, the largest of the 28 functions in terms of employees, includes only a single organization, the U.S. Postal Service. In fiscal 1986, its productivity grew at 1.3 percent, up from 0.4 percent in 1985. During 1986, Productivity indexes1 for government, 1981-86 SIC F u n c t io n a l g r o u p Code 1981 1982 1983 1984 1985 1986 P e rc e n t ch a n g e , 1 9 8 5 -8 6 A v e ra g e a n n u al p e rc e n t ch a n g e , 1 9 8 1 -8 6 F e d e ra l Total, Federal sam ple...................................................... 107.0 108.6 110.3 110.6 111.3 113.2 1.7 1.0 Audit of operations ...................................................... Building and grounds................................................... Communications.......................................................... Education and training................................................. Electric power production and distribution ................. Equipment maintenance ............................................. Finance and accounting............................................... General support services............................................. Information services ................................................... 97.0 93.3 127.0 183.2 95.3 127.9 196.1 109.2 77.9 110.5 166.6 158.2 114.0 97.9 130.4 213.8 108.1 67.2 115.5 163.9 148.6 118.8 100.6 128.8 226.1 108.6 58.5 117.1 163.2 136.1 124.6 93.7 125.3 236.3 109.2 54.5 119.3 170.0 143.0 125.9 - 6 .9 -2.7 4.5 .5 112.0 110.1 110.5 118.6 1.6 8.3 .3 1.7 7.5 .9 -5.8 - 1.1 3.6 112.1 113.8 130.8 122.7 105.4 108.0 .1 117.3 103.9 107.9 112.7 99.4 94.3 113.7 120.9 122.4 103.6 100.4 Legal and judicial ........................................................ Library services.......................................................... Loans and grants ........................................................ Medical services........................................................ Military base services ................................................. Natural resources and environmental management .. Personnel investigations ............................................. Personnel management............................................... 4311 Postal service ............................................................ Printing and duplication............................................... Procurement.............................................................. Records management................................................. Regulation—compliance and enforcement................. Regulation— rulemaking and licensing........................ Social services and benefits ...................................... Specialized manufacturing........................................... Supply and inventory control ....................................... Traffic management ................................................... Transportation.............................................................. 122.1 178.4 115.8 85.6 110.3 127.9 129.3 104.4 104.4 111.5 110.3 100.8 » 104.9 102.7 109.7 97.3 106.4 102.6 127.7 113.8 112.5 121.7 102.1 141.8 98.8 124.8 112.0 111.8 62.8 110.5 150.8 162.0 106.7 108.9 107.2 104.7 101.9 109.3 111.9 104.5 106.7 107.0 105.8 125.3 118.6 131.4 102.4 133.4 106.1 117.0 114.3 107.9 113.1 124.7 120.5 126.6 139.3 109.8 138.0 104.3 115.8 114.6 107.8 96.7 117.9 109.7 94.8 119.1 120.0 103.4 99.4 118.2 120.0 121.1 102.2 105.6 101.9 100.1 99.4 99.0 109.8 120.3 127.2 123.5 126.9 146.1 110.3 122.5 121.7 130.5 153.3 118.7 146.9 96.7 111.7 125.0 119.4 122.9 141.4 150.5 118.6 149.4 98.2 112.7 113.2 120.8 111.8 114.4 116.3 110.3 93.3 108.5 93.8 105.0 (2) (2) 110.1 143.8 100.2 122.1 .6 -6.9 .2 6.2 - 1.1 -7.2 1.8 1.8 4.2 5.1 -.2 .1 4.2 1.3 2.4 - 2.6 .1 8.4 - 1.8 -.1 1.7 1.6 -7 .5 1.7 4.8 2.8 .8 -6 31 - 1.2 -.1 10 4.3 - 1.1 1.3 4.2 4.6 35 1.7 - 1.0 -1.4 .5 S t a t e a n d lo c a l 4911 9441 Alcoholic beverages........................................................ Electric pow er............................................................ Unemployment insurance............................................... 1 Output per employee year. 2 Not available. 3 Percent change— 1981-85. 56 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 105.2 99.1 101.6 102.0 110.0 (2) (2) 4.8 3.9 3 -1 4 -.3 output increased 4.4 percent while labor increased 3.0 percent. Trends, 1981-86. Over the 1981-86 period, output per employee year in the Federal sample rose at an average annual rate of 1.0 percent. The year-to-year changes in productivity ranged from a low of 0.2 percent in 1984 to 1.7 percent in 1986. The overall increase in Federal productivity reflects an average rise of 2.3 percent in output and a 1.3percent increase in labor input. Output increased annually at rates ranging from 1.2 percent in 1982 to 2.7 percent in 1985. Annual rates of change in employee years ranged from a drop of 0.2 percent in 1982 to an increase of 2.1 percent in 1984. From 1981 to 1986, productivity trends for the 28 func tions ranged from 6.2-percent annual growth for communi cations to a 7.2-percent annual decline for electric power production and distribution. Communications had the highest average annual increase in productivity (6.2 percent) of any of the 28 functions. In 1983 and 1984, productivity increased 7.0 percent and 9.0 percent, respectively. The six organizations accounting for this function in 1986 are in the Department of Defense, the Federal Emergency Management Agency, and the Depart ment of State. The function with the second largest average annual in crease in productivity over the last 5 years is finance and accounting (4.8 percent), which includes internal govern ment services, such as treasury bill and bond sales to the public. In 1986, 18 organizations were included in this function. Finance and accounting productivity had been driven by the automation of many of the routine processing operations. In one organization that serves the public, pro ductivity doubled in 1 year as output mushroomed, opera tions were mechanized, and employment was held roughly constant. From 1981-86, the electric power production and distri bution function registered the largest decrease in productiv ity of the 28 functions. During this period, productivity has decreased in every year but one, which is a reflection of sharply decreasing output. Employment has been cut back over the past 5 years, but the decrease in output has ex ceeded the cut in input by a wide margin. 1 For a detailed report on productivity in these industries, see the follow ing M o n th ly L a b o r R e v ie w articles: Mark W. Dumas and J. Edwin Henneberger, “Productivity trends in the cotton and synthetic broad woven fabrics industry”; Horst Brand and Ziaul Ahmed, “Productivty in industrial inorganic chemicals”; Clyde Huffstutler and Barbara Bingham, “Productivity in industrial organic chemicals”; John W. Ferris and Virginia L. Klarquist, “Productivity in nonelectric heating equipment”; Mark Scott Sieling, “Strong gains in semiconductor productivity linked to multiple innovations”; Patricia S. Wilder and Virginia L. Klarquist, “Productivity in the retail hardware store industry”; Brian L. Friedman, “Productivity trends in the department store industry”; and John G. Olsen and Richard B. Carnes, “Productivity in the automotive repair shop industry.” 2 For additional information about multifactor productivity in these two https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis State and local services Electric power. State and local government electric power output per employee year increased 0.5 percent in 1985, the last year for which data are available, as output and employ ment increased 2.9 percent and 2.5 percent, respectively. In 1984, output and employment also increased, but productiv ity dropped as employment grew more rapidly than output. However, from 1981 to 1985, productivity declined at an average annual rate of 1.4 percent as employment increased at a more rapid rate than output (3.0 percent versus 1.5 percent). Unemployment insurance. State unemployment insurance productivity increased 4.8 percent in fiscal 1986 as output dropped 3.1 percent and inputs were cut 7.4 percent. In 1985, productivity increased 2.9 percent and output and employment dropped 1.2 percent and 4.1 percent, respec tively. The decrease in output over the past 3 years is a reflection of decreasing unemployment in the Nation and the resulting drop in unemployment insurance claims and pay ments. Over the 1981-86 period, productivity fell at a rate of 0.3 percent, while output declined at an average annual rate of 5.3 percent, and labor decreased at a 5.0-percent rate. State sales o f alcoholic beverages. Output per employee year in State sales of alcoholic beverages dropped 1.6 per cent in 1985, the latest year for which data are available, as output and input dropped 2.6 percent and 1.1 percent, re spectively. In 1984, productivity increased as output and employment dropped. The drop in output and input in 1984 and 1985 is a continuation of trends that started in 1978, trends which reflect decreasing demand for alcoholic bever ages, and a shift in several States from government to pri vate sector operations. Over the 1981-85 period, productiv ity increased at a 0.9-percent average rate as employment fell at a higher rate than output (3.2 percent versus 2.4 percent.) A full report, Productivity Measures for Selected Industries and Government Services , b l s Bulletin 2296, is available from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402. Price $9.50. Q industries and a description of the methodology used to develop the indus try productivity measures see Mark K. Sherwood, “Performance of multi factor productivity in the steel and motor vehicles industries,” M o n th ly L a b o r R e v i e w , August 1987, pp. 2 2-30. 3 For additional information about productivity in government, see Don ald M. Fisk, “Productivity trends in the Federal Government,” M o n th ly L a b o r R e v ie w , October 1985, pp. 3 -9 ; Jerome A. Mark, “Public sector productivity measurement: The b ls experience,” in T h e M e a s u r e m e n t a n d I m p lic a tio n s o f P r o d u c tiv ity G r o w th : P r o c e e d in g s o f a W o rk s h o p , N o v . 2 2 - 2 3 , 1 9 8 4 (Canberra, Australia Department of Employment and Indus trial Relations, Bureau of Labor Market Research, 1986), Monograph Series No. 14; and Donald M. Fisk, M e a s u r in g P r o d u c tiv ity in S ta te a n d L o c a l G o v e r n m e n t , Bulletin 2166 (Bureau of Labor Statistics, 1983). 57 Research Summaries Evaluating workplace injury and illness records; testing a procedure W illia m M . E ise n b e r g and H elen M c D o n a l d The Occupational Safety and Health Act of 1970 requires many private sector employers to keep records of workrelated injuries and illnesses. The Bureau of Labor Statistics establishes recordkeeping guidelines (definitions) and col lects data through a survey of these employers to produce national measures of the occurrence of occupational injuries and illnesses. The results of the bl s survey are used by the Occupational Safety and Health Administration ( o s h a ) to identify and target industries for inspection, o s h a and other safety and health specialists, researchers, and government organiza tions also use the survey data in other efforts to improve worker safety and health. Finally, national and State data from the bl s survey also supply policymakers, as well as the general public, with information on workplace develop ments in the safety and health field. Both bl s and o s h a are keenly aware of the need for— and the difficulties in securing— accurate information on in juries and illnesses in the workplace. First, the identification of occupational illness has been a longstanding problem. Occupational illness often develops over a long period of time, and the causal relationship to the workplace is fre quently very difficult to establish. Second, problems can occur in recording injuries in the workplace. The fact that employers and workers do not fully understand the record keeping definitions or fail to record injuries for some other reason may result in underrecording of job-related injuries and fatalities. For some time, bl s and o s h a have been investigating methods for evaluating the quality of the occupational safety and health data and for improving these data where neces sary. This article reports on one of these initiatives: a pilot project to test the feasibility of a case-by-case comparison of the employer’s o s h a recordkeeping log with medical records, workers’ compensation reports, and other material at the business establishment. William M. Eisenberg is Assistant Commissioner, Office of Safety, Health, and Working Conditions, Bureau of Labor Statistics: Helen McDonald is an economist in the same office. 58 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Description of the project The pilot project involved a visit by o s h a inspectors to evaluate recordkeeping in a random sample of approxi mately 200 manufacturing establishments with more than 10 employees— half of the establishments were in Massachu setts and half in Missouri, bl s selected the sample of estab lishments, developed the test procedures, and provided some training to o s h a staff in the procedures to be used in record checking, o s h a compliance officers, who have the legal authority to inspect medical records, conducted the onsite record checks, b l s reviewed and evaluated the test results. Each onsite check at the sampled establishment consisted of four parts: • Interviews with the recordkeeper regarding practices for recording work injuries and illnesses (forms used, etc.) and the manner in which the process took place. • Questioning of recordkeepers about the definitions and concepts associated with the recordkeeping require ments. • Reconstruction of the establishment’s o s h a Log and Summary of Occupational Injuries and Illnesses from other records when available, and comparison with the original log. • Interviews with employees to (1) determine worker awareness of the injury and illness records, and (2) obtain additional information about injuries and ill nesses at the establishment. The project was intended to test a procedure and to deter mine the cost in inspectors’ time; it was not designed to provide statistical results that could be generalized to the economy as a whole. Only a small number of establishments (nearly 200) were visited and about 4,000 injury and illness recordings were examined. The discussion that follows re flects only the experience of the establishments in the test; no conclusions can be drawn from them about the accuracy of all employer records. Record review results Many private sector employers, including the 192 estab lishments in this test, must complete two o s h a records when an occupational injury or illness occurs. The first is a oneline entry on the log ( o s h a Form No. 200), which also has to be included in the log’s yearend summary total. A more detailed supplementary record ( o s h a Form No. 101) pro vides worker characteristics and a description of the inci- dent, with additional information on the nature of the injury or illness. State workers’ compensation forms may be sub stituted for the o s h a 101 and frequently are. Nearly 90 percent of the 192 establishments visited kept the o sh a log; virtually every one of them had supplementary records for the injuries and illnesses on the log. Twelve employers who had no recordable cases kept no log. Nine other employers, most of whom had fewer than 10 record able cases, did not keep a log. In most instances (about 80 percent), the recordkeepers interviewed said that they had entered recordable cases on the log within the 6 working days requirement. About 70 percent of the establishments reported that they posted the yearend summary at the workplace as required during the month of February. Decisions on the recordability of cases were made by management in slightly more than two-fifths of the estab lishments, and by other business professionals at about three-tenths of the workplaces. Decisions were made less often by clerical employees (one-sixth) and by medical pro fessionals (less than one-tenth). In the test, o s h a compliance officers found that they were able to question the person who actually kept the records about the definitions used. A special effort at more intensive questioning would be required to test the recordkeeper’s understanding of the guidelines, however, and this was out side the scope of the pilot project. Procedures for evaluating the log The main purpose of the pilot effort was to test methods for evaluating the employer’s log. Reviewers were in structed to access the o s h a Supplementary Record, work ers’ compensation reports, daily reports of injuries and ill nesses, employee medical records, company accident reports, and other insurance records. From these sources, the reviewer was to independently “reconstruct” the log for 1986 and then compare the reconstructed log with the orig inal kept by the employer. The reviewer was to discuss any differences with the employer to obtain additional informa tion to assist in understanding any discrepancies that might be found. In the 192 establishments visited, employers recorded nearly 4,000 cases on their logs for 1986. o sh a reviewers found overrecording in 15 percent of these cases, that is, the employer recorded cases that, under the bls Recordkeeping Guidelines for Occupational Injuries and Illnesses,1 were not supposed to be recorded. On the other hand, underrecording, that is, recordable cases that were not entered on the logs, were found in about one-fifth of the total record able cases in these companies. Virtually all of the over recording involved cases with no lost worktime, whereas the undercounted injuries and illnesses were about equally split between those with no lost worktime and those involving lost workdays. Overall, lost workday cases were under recorded by about one-fourth in these establishments. Some https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis of this underrecording was due to employers entering lost workday cases on their logs as no-lost-time cases. Con versely, injuries and illnesses without lost workdays were overrecorded by nearly one-fifth. Overall, the lost workdays associated with lost workday cases were undercounted by almost one-fourth. Nearly half of the undercounted days were found in 55 long-term cases. In addition, about one-half of the lost workdays undercount involved days of restricted work activity. Restricted work activity is the inability to perform normal job duties during a work shift rather than actual absence from work. Only one case resulting in a fatality was found during the review, and it was accurately recorded on the log. Employee interviews The employee interview portion of the project had two purposes: (1) to test a method for obtaining information from employees concerning their awareness of and partici pation in the recording process, and (2) to learn if employees knew of any cases that should have been on the log but had not been recorded. About 1,250 employees were interviewed— about 4 in every 100 employed in the 192 establishments. Although 70 percent of the establishments reported that a summary of the log had been posted as required in the workplace, only about 2 out of 5 of the interviewed workers recalled having seen it. A few employees reported having seen the log on other occasions, such as during safety meetings. Although em ployees have the right to see the log upon request, only one of those interviewed had initiated such a request. Virtually all of the employees contacted who had experi enced work-related injuries or illnesses told o sh a interview ers that they had reported them to their employer, but it was not possible in many cases to determine whether some of the injuries, especially those with no lost workdays, were recordable. The employees did, however, identify 221 lost time injuries and illnesses that reviewers confirmed to be recordable. All but 29 of these had been listed on the log, although not always as lost-time cases. There were several instances in which a 1985 event was reported by an employee as having occurred in 1986, indi cating a telescoping of time in the recall process. In addi tion, some employees were unable to identify all of their 1986 injuries and illnesses. Summary and evaluation The major objective of the test was achieved in that the reviewers were generally able to access medical records and other supplementary information to permit an evaluation of the logs. A second objective was to determine the cost in resource time to carry out the plan. As indicated, nearly 200 establishments were visited, and about 1,250 workers were interviewed. Although the procedures had been carefully designed to minimize use of resources, the process proved to consume considerable resources. The establishment 59 MONTHLY LABOR REVIEW April 1988 • Research Summaries records check— the record reviews, interviews, related compliance activities, and followup work outside the estab lishment— took o s h a compliance officers an average of 40 hours (5 workdays) per establishment to complete. The re construction of the employer log was the most timeconsuming part of the process. The lack of employee listings, absenteeism, and different work shifts made it difficult at times to select or contact employees. In some situations, employees who were injured or ill in 1986 were intentionally selected for interview to provide more information on their 1986 cases. Experience with these employee interviews and those with people re sponsible for keeping the employer log, while useful, sug gests the need for further research on ways to expand the detail requested and to ensure full understanding of the questions asked. ---------FO O TN O TE---------A c k n o w l e d g m e n t : The records checks were planned and conducted by the following o s h a area office personnel: Mary Gayle, Warren Huse, William Lander, Frank Pagliuca, and Marie Sullivan in Massachusetts; and Ted Bach, Sandra Jenkins, Diana Lee Gandy, Jean Marshall, and Mary Wehmeier in Missouri. Joanne Goodell, o f the o s h a Policy Directorate directed the program. The following staff members in the b ls Office of Safety, Health, and Working Conditions contributed to the development, processing, and analysis of the results of the project: Stephen Newell, Robert Moore, Elyce Biddle, Maryrose Cline-Buso, and Janice Windau. 1 The b ls guidelines provide interpretation of the recordkeeping require ments o f the Occupational Safety and Health Act of 1970 and Title 29, Pt. 1904, of the Code of Federal Regulations. A movable beast: changing patterns of regional unemployment R ic h a r d M. D e v e n s , Jr . At yearend 1987, the current expansion reached 61 months, the longest peacetime expansion on record. From the reces sion trough in November 1987, employment rose by about 14.6 million, the number of jobless fell, b^ almost 5 million, and the unemployment rate dropped from 10.8 percent to 5.8 percent. As in other years, there were wide differences in the incidence of unemployment among the State and regional labor markets in 1987. New Hampshire had the lowest aver age rate of unemployment for the year— 2.6 percent— while Louisiana, West Virginia, Alaska, and Mississippi had un employment rates in double digits. On a regional basis, New England reported the lowest unemployment rate— 3.4 per cent. In contrast, the West South Central division, which Richard M. Devens, Jr., is an economist in the Division of Labor Force Statistics, Bureau of Labor Statistics. 60 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis includes Louisiana, saw 8.9 percent of its labor force jobless. Over the last decade or so, the relative situations of the regions have shifted considerably. In the mid-1970’s, higher-than-average unemployment rates were basically a bicoastal phenomenon. In 1976, the Northeast census re gion— which includes New England— and the West Coast States— especially California and Washington— had much more severe unemployment problems than the geographic center of the country.1 (See table 1.) Much was made at the time of intractable structural economic problems: “the frostbelt,” the presumed obsolescence of the Northeastern indus trial base, the changing demographics of the West Coast’s growing labor force, and the migration of manufacturing employment to the expanding South and Southwest. Following the recessions of the early 1980’s, however, a significantly different regional pattern of unemployment began to emerge. In 1983, relatively high unemployment rates2 were concentrated in a broad band of Eastern and Central States. (See chart 1.) Structural decline was still evident in the labor markets of the traditionally industrial East North Central division, but the effect of recession on manufacturing jobs also took a toll on the more newly indus trialized East South Central States of Alabama, Kentucky, Mississippi, and Tennessee. Louisiana also experienced high unemployment, as oil prices declined and high-cost exploration and production ventures in the Gulf of Mexico were curtailed. In 1986, the fourth year of recovery, another pattern of regional unemployment rates started to become apparent. The New England States had all moved to the lowunemployment group, and several of the East North Central States had unemployment rates fairly close to the improving national average. By 1987, the new pattern was more clearly developed. The geographic axis of relatively high unemployment had shifted from North-South to basically East-West. (See chart 1.) The northeastern States, by now including New York, a beneficiary of a rapid buildup in financial services, and New Jersey, well-positioned as a transportation services and re gional retailing center, had jobless rates well below the national level. The coastal States in the northern tier of the South Atlantic division were also in good shape. State un employment rates 20 percent or more above the national average of 6.2 percent started in West Virginia and Ken tucky and broadened through the West South Central divi sion, before sweeping out to Washington State by way of Colorado, Wyoming, and Idaho. High unemployment thus was largely concentrated in States whose economies were most dependent on energy production. California, in con trast to its position a decade before, was now among the States with near-average unemployment. Over the current 5-year expansion, the relative dispersion of State unemployment rates has increased, which, on the surface suggests a trend toward polarization of State Chart 1. State unemployment rates, 1983 and 1987 1987 JD S ' 1 |---------I______I More than 20 percent b e lo w U.S. average unemployment rate □ Within 20 percent of U.S. average unemployment rate ■■■■[ More than 20 percent a b o ve U.S. average unemployment rate NOTE: U.S. average unemployment rate was 9.6 percent in 1983 and 6.2 percent in 1987. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 61 MONTHLY LABOR REVIEW April 1988 • Research Summaries Table 1. Unemployment rates by State, selected years, 1976-87 S ta te Alabama ................................ A laska.................................... Arizona .................................. Arkansas ................................ California................................ Colorado ................................ Connecticut............................ Delaware................................ District of Columbia ............... Florida.................................... G eorgia.................................. H a w aii.................................... Idaho....................................... Illinois .................................... Indiana .................................. Iowa ...................................... Kansas .................................. Kentucky................................ Louisiana................................ Maine .................................... M aryland................................ Massachusetts....................... Michigan ................................ Minnesota .............................. Mississippi.............................. Missouri.................................. Montana ................................ Nebraska................................ Nevada .................................. New Hampshire..................... 1976 1983 1986 6.8 8.0 13.7 10.3 9.1 9.8 7.8 10.8 10.8 6.2 8.1 9.8 7.1 9.2 5.9 9.5 8.9 9.1 9.0 8.1 9.8 5.7 6.5 6.1 10.1 9.7 6.6 6.0 8.1 11.7 8.6 6.9 8.7 6.7 7.4 3.8 4.3 7.7 5.7 1987 5.8 7.7 3.3 3.2 6.3 5.3 7.5 6.5 9.8 11.4 5.9 4.8 8.7 5.5 3.8 8.1 11.1 8.1 6.1 6.7 7.0 5.4 9.3 13.1 5.3 7.4 6.4 5.5 4.9 8.0 4.0 4.2 5.6 11.7 6.8 11.8 8.9 9.0 6.8 6.9 6.9 14.2 4.5 3.8 8.8 8.2 8.2 12.6 5.3 11.7 10.2 9.5 9.4 5.9 6.6 6.2 6.1 8.8 9.9 6.1 3.3 9.0 6.4 5.7 9.8 5.4 5.0 New J e rs e y ............................ New M exico............................ New Y o rk................................ North C a rolina........................ North D a kota.......................... Ohio ...................................... Oklahoma .............................. Oregon .................................. Pennsylvania.......................... Rhode Isla n d .......................... 10.4 9.1 10.3 10.1 8.6 South Carolina........................ South Dakota.......................... Tennessee .............................. Texas .................................... Utah ...................................... Vermont.................................. Virginia .................................. W ashington............................ West V irg inia.......................... Wisconsin .............................. W yom ing................................ 6.2 7.8 8.9 5.6 8.1 6.0 2.8 5.0 9.2 6.3 5.3 6.3 8.8 12.0 4.4 4.2 3.2 5.4 6.3 7.4 4.9 6.3 2.5 4.0 8.9 4.9 4.5 5.2 7.0 7.4 3.6 7.8 5.6 9.5 7.9 10.8 11.8 8.5 6.2 6.8 8.1 8.3 4.0 5.7 3.8 6.9 3.4 10.0 6.2 5.4 11.5 4.7 8.0 8.9 6.0 5.7 5.7 8.7 5.9 8.7 7.5 5.6 4.1 12.2 9.0 9.2 6.9 6.1 11.2 18.0 10.4 8.4 8.1 8.2 8.0 6.0 4.7 5.0 8.2 11.8 7.0 9.0 5.6 4.2 6.6 8.4 6.4 3.6 4.2 7.6 10.8 6.1 8.6 performance. However, such a pattern is typical, reflecting an arithmetic process that may be illustrated by a simple example. Assume that the national unemployment rate is 10 percent at some time and over the course of the next year every State’s jobless rate falls by 5 points. The national rate will then improve to roughly 5 percent, but the standard deviation of the State rates will not change and the ratio of that figure to the national rate, the “coefficient of varia tion,”— a statistical measure of relative dispersion— will actually increase. 62 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Although this helps explain why the relative dispersion of State unemployment rates seems larger in the recent years that have been part of a prolonged recovery, there still remains the challenging task of explaining the differences among the levels of State unemployment rates. In efforts to reduce the problem to its elements, analysts have often concentrated on industry mix and economic shock factors.3 The rapidly changing pattern of State and regional unem ployment rates described in this article suggests that the differentials are clearly not a function of relatively stable differences in regional attributes, such as industry distribu tion or demographics, but rather of a fairly rapidly changing economic environment. For example, Rhode Island and Massachusetts are neighboring States with unemployment rates that are now well below the Nation’s. Both were near the top of the table in 1976, and both have been part of the general resurgence of the New England economy. But, their industry distributions and policy mixes are quite different. Massachusetts is the prototypical high-tech State combined with a strong regional financial services center, while Rhode Island has much of its work force engaged in such relatively low-wage, traditional manufacturing industries as apparel and jewelry.4 While Massachusetts has experimented with broad business development programs on the part of the State government, the citizens of Rhode Island explicitly rejected such a comprehensive approach in a 1984 referen dum. From this example, and the dramatic changes in the spa tial patterns of State unemployment outlined earlier, one might conclude that tomorrow’s winner cannot easily be projected from today’s characteristics, policies, or leader ship position. ------ F O O T N O T E S -----1 Susan Elizabeth Shank, “Changes in regional unemployment over the last decade,” M o n th ly L a b o r R e v i e w , March 1985, pp. 17-23. The current paper is essentially an update of Shank’s more detailed article. 2 States with unemployment rates 20 percent or more lower than that year’s national rate are unshaded in the chart accompanying this article. States with unemployment rates 20 percent or more above the Nation’s are shaded black. States whose jobless rates are within 20 percent o f the national figure are gray. 3 Philip L. Rones, “An analysis of regional employment growth, 1937— 8 5 M o n th ly L a b o r R e v i e w , June 1986, pp. 4 -1 3 . Rones’ comments and references concerning shift-share analysis, the impact o f migration, and the role o f economic shocks are especially useful. 4 Howard Kurtz, “Rhode Island: Rags to Riches,” T h e W a sh in g to n P o s t , Feb. 8, 1988. M ajor Agreements Expiring Next M onth This list of selected collective bargaining agreements expiring in May is based on information collected by the Bureau’s Office of Compensation and Working Conditions. The list includes agreements covering 1,000 workers or more. Private industry is arranged in order of Standard Industrial Classification. In d u str y o r a c tiv ity E m p lo y e r a n d lo c a tio n L a b o r o r g a n iz a tio n ! N u m b er o f w ork ers Associated General Contractors of Massachusetts and one other (Massachusetts) Builders Association of Chicago (Illinois)............................................. Mid-America Regional Bargaining Association (Chicago, IL) .................... Southwestern Michigan Contractors Association (Michigan) ................ Omaha Building Contractors Employers Association (Nebraska) ........ Calumet Builders Association (Gary, i n ) ................................................................... Associated General Contractors, Oregon-Columbia Chapter (Oregon and Washington) Mid-America Regional Bargaining Association, heavy and highway (Chicago, IL) Laborers........................................... 6,000 Bricklayers........................................ Carpenters ........................................ Laborers........................................... Laborers........................................... Carpenters ........................................ Operating Engineers ........................ 5,000 12,000 1,400 1,700 2,400 2,000 Operating Engineers ........................ 1,000 Laborers........................................... Laborers........................................... 1,000 4,000 Laborers............................................ Carpenters ....................................... 1,000 6,000 Operating Engineers ........................ 6,000 Boilermakers .................................... 1,200 P r iv a te Construction.................................... Building Trades Employers Association (Syracuse, NY) ...................... Construction Industries of Massachusetts, Inc., heavy and highway (Massachusetts) Wisconsin Road Builders Association (Wisconsin)................................ Associated General Contractors, Oregon-Columbia Chapter (Oregon and Washington) Associated General Contractors, building, highway and tunnel (Arizona) Boilermakers Employers Association of Western Pennsylvania (Pennsylvania) Ironworkers Employers Association of Western Pennsylvania (Pennsylvania) Mechanical Contractors Association of Western Pennsylvania (Pennsylvania) Sheet Metal Contractors Association (Chicago, IL) .............................. Painting a n d Decorating Contractors of America (Chicago, I L ) ............ Associated Steel Erectors of Chicago (Illinois)...................................... Electrical Contractors Association of the City of Chicago (Illinois) . . . Plumbing Contractors Association of Chicago and Cook County (Illinois) Iron Workers .................................... 1,500 Plumbers ......................................... 1,200 Sheet Metal Workers........................ Painters ........................................... Iron Workers .................................... Electrical Workers ( i b e w ) ................ Plumbers ......................................... 4,000 6,000 1,750 11,000 5,400 Mechanical Contractors Association (Chicago, i l ) ................................ Sheet Metal Employers Association (Detroit, m i ) ................................. National Electrical Contractors Association (Milwaukee, wi) .............. Chicago Roofing Contractors Association (Illinois) .............................. National Electrical Contractors Association (San Francisco, C A ) .......... National Electrical Contractors Association (Colorado) ........................ Contract Administration Fund of Northeastern Colorado and one other (Colorado) National Electrical Contractors Association (Seattle, w a ) ............................ Plumbers ......................................... Sheet Metal Workers........................ Electrical Workers ( i b e w ) ................ Roofers............................................. Electrical Workers ( i b e w ) ................ Electrical Workers ( i b e w ) ...................... Plumbers ......................................... 7,000 2,000 1,300 2,400 2,500 1,800 1,400 Electrical Workers ( i b e w ) ...................... 1,300 Food products ................................ Tobacco .......................................... Campbell Soup Co. (Sacramento, C A ) ........................................................................ American Tobacco Co. (North Carolina)............................................... 1,400 2,400 Textiles .......................................... Knitted Outerwear Manufacturers Association (Pennsylvania).............. J. P. Stevens & Co. (Roanoke Rapids, NC) .......................................... New York Coat and Suit Association and others (Interstate)................ Cotton Dress and Juvenile Apparel Association (New York, NY) ........ Affiliated Dress Association Manufacturers Inc. (Interstate) ................ National Association of Blouse Manufacturers Inc. (Interstate)............ New England Sportswear Manufacturers Association (Boston and vicinity, MA) New England Clothing and Rainwear Manufacturers Association (Boston, m a ) Teamsters......................................... Bakery, Confectionery and Tobacco Workers Ladies’ Garment W orkers................ Clothing and Textile Workers ........ Ladies’ Garment W orkers................ Ladies’ Garment W orkers................ Ladies’ Garment W orkers................ Ladies’ Garment W orkers................ Ladies’ Garment W orkers................ 4,000 3,500 15,000 2,000 20,000 3,300 2,000 Ladies’ Garment W orkers................ 2,000 Apparel ......................................... See footnote at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW Industry or activity April 1988 • Major Agreements Expiring Next Month New England Apparel Manufacturers Association (Fall River, Lumber............................................ Paper .............................................. Chemicals ...................................... Stone, clay, and glass products . .. Fabricated metal products.............. Machinery ...................................... Electrical products.......................... Transportation equipment .............. Trucking......................................... Communication .............................. Utilities ......................................... Labor organization1 Employer and location ma) ... W orkers................ W orkers................ W orkers................ W orkers................ 19,900 3,800 1,650 1,100 Ladies’ Garment W orkers................ Ladies’ Garment W orkers................ Ladies’ Garment W orkers................ 25,000 4,000 4,500 Roseburg Lumber Co. (Oregon)............................................................. Western States Wood Products Employers Association (Interstate) . . . . Weyerhaeuser Co. (Interstate) ............................................................... Simpson Lumber Co. (Interstate)........................................................... Nekoosa-Edwards Paper Co. (Nekoosa and Port Edwards, w i ) ............ E. R. Squibb and Sons, Inc. (New Brunswick, NJ) .............................. American Standard, Inc. (Interstate) ..................................................... The Stanley Works (New Britain, CT)................................................... Carpenters and Woodworkers.......... Carpenters and Woodworkers.......... Various unions.................................. Various unions.................................. Paperworkers .................................... Oil, Chemical and Atomic Workers . Glass, Pottery, Plastics .................... Machinists ........................................ 2,800 34,000 7,500 1,350 1,500 1,300 1,100 2,100 Ingersoll-Rand Co. (Painted Post, NY) .................................................. Tecumseh Products Co. (Tecumseh, mi) ............................................... Carrier Corp. (Morrison, tn) ................................................................. Magnavox Co. (Fort Wayne, IN) ........................................................... Whirlpool Corp. (St. Joseph, MI)........................................................... Avco Corp., Lycoming Division (Stratford, CT).................................... Dana Corp., Weatherhead Division (Indiana and O hio)........................ National Master Automobile Transporters Agreement (Interstate)........ Garment Industry Trucking Associations (New York and New Jersey) Hawaii Telephone Co. (Hawaii)............................................................. Houston Lighting and Power Co. (Texas).............................................. Northern Indiana Public Service Co. (Indiana) ...................................... Public Service Co. of Indiana, Inc. (Indiana) ........................................ Panhandle Eastern Pipe Line Co. (Interstate) ........................................ Electrical Workers (iue) .................. United Products Workers (Ind.) . . . . Sheet Metal W orkers........................ Industrial W orkers............................ Machinists ........................................ Auto Workers .................................. Auto Workers .................................. Teamsters......................................... Ladies’ Garment W orkers................ 1,000 1,300 1,250 1,600 1,200 2,000 1,200 21,000 2,200 Electrical Workers (ibew) ................ Electrical Workers (ibew) ................ Steelworkers .................................... Electrical Workers (ibew) ................ Oil, Chemical and Atomic Workers . 3,200 4,600 3,700 1,800 1,200 Teamsters and Longshoremen and Warehousemen Food and Commercial Workers . . . . Food and Commercial Workers . . . . Teamsters......................................... 25,000 Industrial Employers and Distributors Association (California)............ Retail trade .................................... First National Stores, Inc. (Connecticut)................................................ Star Markets (Rhode Island and Massachusetts) .................................... Master Laundry Agreement (Michigan).................................................. 1 Affiliated with 64 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis a f l -cio except where noted as independent (Ind.). Ladies’ Garment Ladies’ Garment Ladies’ Garment Ladies’ Garment 3,200 Greater Blouse, Skirt and Undergarment Association (New York, NY) United Knitwear Manufacturers League (New York, ny) .................... National Skirt and Sportswear Association, Inc. (New York, NY) . . . . National Women’s Neckwear and Scarf Association, Inc. (New York, NY) Atlantic Apparel Contractors Association (Pennsylvania)...................... Infants’ and Children’s Coat Association (New York, NY) .................. Association of Garment Contractors, ladies sportswear (Boston, ma) .. Wholesale tra d e .............................. Services .......................................... Ladies’ Garment W orkers................ Number of workers 4,050 1,200 1,100 Developments in Industrial Relations Oil, coal settlements Possible interruptions in the Nation’s energy supply were averted when the Oil, Chemical and Atomic Workers ( o c a w ) settled with petroleum refining and distributing companies, and the United Mine Workers settled with bitu minous coal producers. The round of o c a w settlements, which follwed the terms of a lead-off accord with American Oil Co., did result in brief work stoppages over local issues at a few refineries, but the impact was minimal as manage ment employees kept the highly automatic facilities in oper ation. In soft coal, there were union threats of work stop pages at a few companies that were not members of the Bituminous Coal Operators Association, the industry’s bar gaining leader, but the stoppages were averted when the independent producers accepted the same terms as the Asso ciation. (Before the Mine Workers-Bituminous Coal Opera tors Association settlement, other independents had signed interim “me too” agreements prohibiting work stoppages by Mine Workers members and pledging the companies to ac cept the same terms as the Association.) The American O ü - o c a w contract included a $900 lump sum payment to employees upon ratification, a 30-cent-anhour wage increase effective February 1, and a 3-percent increase in February 1989. Amoco also agreed to increase its financing of health insurance by $10 a month for family coverage in the first year and by $2 in the second year. The contract covered 4,000 workers. The wage and benefit terms of the American O ü - o c a w settlement were expected to eventually apply to about 40,000 workers covered by 300 contracts with 60 compa nies. Among the first companies to settle on pattern con tracts were Atlantic Richfield Co., Ashland Oil Inc., Shell Oil Co., Union Oil Co., and Conoco Inc. The coal contract is effective for 5 years, compared with 40 months for the 1984 contract and the usual 3 years for earlier contracts. According to Mine Workers President Richard Trumka, the contract emphasized job opportunities for union members, as there were about 30,000 members on layoff and about 60,000 still working in the soft coal fields at the time of the settlement. The economic difficulties for Mine Workers members and their employers are generally attributed to plentiful supplies of moderate cost petroleum “Developments in Industrial Relations” is prepared by George Ruben of the Division o f Developments in Labor-Management Relations, Bureau of Labor Statistics, and is largely based on information from secondary sources. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis and to growing coal production in western open pit mines, where employees are generally nonunion, or members of other unions. Under the new job opportunity provisions, laid-off Mine Workers members gained • The right to the first three of every five jobs available at nonunion operations of companies that have other opera tions covered by the contract. • The right to all jobs in operations that their employer leases out to other companies. • The right to “panel” (apply their recall rights) at all of their employer’s operations. (Previously, laid-off workers could only panel the company’s operations in the Mine Workers district in which the job was located or in one contiguous district. • New training and education programs financed by em ployer payments which the union expects to total $20 mil lion over the contract term. Economic provisions of the agreement included hourly wage increases of 25 cents on February 1, 1988, 35 cents on February 1, 1989, and 45 cents on February 1, 1990, bring ing the top rate for an underground miner to $16,615 an hour, or $132.92 a day. The union also has the option to reopen bargaining on wages and pensions after the third and fourth contract years. Pension changes already adopted include increases for those who began drawing benefits prior to December 6, 1974: a $40 a month increase for normal retirees with 20 years’ service, bringing their monthly benefits to $375; a $40 increase for disability retirees, bringing their monthly benefits to 217.50; and a $20 increase for surviving spouses, bringing their benefits to $125. For those who began drawing benefits after December 5, 1974, but prior to the February 1, 1988, effective date of the new contract— under a separate plan providing for gradu ated benefit levels based on years of service and age at retirement— the increases were a flat $30 a month for nor mal and disability retirees, and for surviving spouses was raised to 75 percent (formerly 50 percent) of the amount the retiree had been receiving. All steps of the graduated formula for employees retiring on normal pension during the contract term also were in creased. The new maximum is $32 a month for each year of service after February 1, 1990, for workers retiring at age 62. Previously, the maximum for age 62 retirees was $18.50 for each year of service in excess of 30. 65 MONTHLY LABOR REVIEW April 1988 • Developments in Industrial Relations Employees who retire during the first 2 years of the con tract as a result of mine accidents will receive a monthly benefit of at least $190 and those who retire in the third year will receive at least $200. (They will recieve a normal pen sion if it amounts to more than the $190 or $200 minimum.) The previous minimum was $170 a month. For surviving spouses, the benefit was raised to 75 percent (formerly 50 percent) of the deceased person’s entitlement. The accord also provided for a retirement savings plan under provision 401(k) of the Internal Revenue Code, al lowing employees to invest up to 10 percent of their earn ings, with taxes on the investment and any resulting gains deferred until the participant withdraws money from the fund. Other terms included a $1,000 increase in the death benefit to the beneficiary of deceased pensioners; a $20 increase in sickness and accident benefits, to $220 a week; a $5,000 increase in the employees’ $30,000 life insurance coverage for natural death and a $10,000 increase in their 60,000 coverage for accidental death; and a $10 increase in the $170 annual clothing allowance. Honeywell consolidates seniority groups In. Minneapolis, m n , 6,300 employees of Honeywell Inc.’s electronic products plant were covered by a 2-year contract negotiated by Local 1145 of the Teamsters union. The accord provided for a single pay increase, 4 percent, effective immediately. Initially, Honeywell had proposed a 3-year wage freeze. Another major issue was resolved when the parties agreed to increase the employees’ share of monthly hospitalmedical-surgical insurance premiums to $13.25, from $9.25, for single workers and to $26.50, from $18.50, for married workers. The plan will continue to cover all fees and charges (the company withdrew its proposal that em ployees pay up to $3,000 a year in coinsurance and de ductibles). The separate 4-year pension agreement raised the benefit rate for current employees to $25 a month, from $22, for each year of credited service. There also was a $1 increase in the rates for current retirees. The other important contract change was consolidation of 42 separate seniority groups into one, which the company proposed to increase flexibility in work assignments. Ac cording to the union, employees in danger of layoff will also benefit because they will be able to bid on a much larger number of jobs, if they have the required skills. Honeywell also agreed to pay guarantees of up to 1 year for employees who lose jobs or are bumped into lower paying jobs. The company guaranteed that employees will not be laid off as a result of production increases resulting from the new sys tem. Yale settlement averts planned stoppage In New Haven, c t , Yale University settled with two lo cals of the Hotel Employees and Restaurant Employees, averting a planned work stoppage involving 3,600 em66 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ployees. One of the unions represents clerical and technical workers, and the other, food service and maintenance work ers. The 4-year agreement, the longest ever negotiated by Yale, provided for 6-percent annual pay increases. Another feature of the settlement was a restructuring of the job classifications systems, which the union contended had led to “economic discrimination” against women and minority group members because pay rates were too closely grouped and supervisors’ assignment of employees to grades was arbitrary. Under the new system, the number of grades was reduced and supervisors will have less discretion in writing job descriptions. Other provisions gave Yale more freedom in subcontract ing work and increased training courses for employees. Both sides said that they hoped that the accord signaled a reversal of the turbulent bargaining relationship of the past 20 years, which was marked by five work stoppages, includ ing a 10-week stoppage in 1984. Safety program revamped at Bath Iron Works Labor relations at Bath Iron Works took a turn for the better when the shipbuilding firm and three unions cooper ated in a revamping of the safety program that boded well for mid-1988 bargaining on wages and benefits, in contrast with 1985, when a 3-month work stoppage occurred. In signing the new safety agreement, union and manage ment representatives expressed hope that the revamping would convince the Department of Labor’s Occupational Safety and Health Administration of their commitment to safety and lead to a reduction of the record $4.2 million fine o s h a had proposed for Bath in October 1987 after finding more than 3,000 alleged violations constituting a “serious threat” to employees. Regardless of the outcome of the continuing legal action against the company, both management and the unions said the safety agreement would stand. The 37-point agreement, which was expected to cost Bath $6 million over its 3-year term, called for: • • • • Hiring a qualified director of safety. Hiring 16 safety inspectors and laboratory employees. Establishing a joint safety committee. Discontinuing the safety awards program and review ing possible alternatives. • Substantially modifiying work sites and equipment to reduce dangers. • Sending firefighters to o s h a training programs. • Training safety department employees in assuring compliance with o s h a regulations. • Developing plans for in-house safety inspections at least every 3 months at the three facilities, which are located in Maine. • Inviting o s h a to conduct a complete inspection in 1990. The unions involved in the settlement were the Marine and Shipbuilding Workers, the Marine Draftsmen’s Associ ation, and the Independent Guards Association. Current Labor Statistics Schedule of release dates for major Notes on Current Labor Statistics bls statistical series ......................... ........................................................................ ................................................................................................................... 68 ......... .................... 69 1. Labor market indicators........................... ..................................................................................................................................................................... 2. Annual and quarterly percent changes in compensation, prices, andproductivity ........................................................................................... 3. Alternative measures of wage and compensation changes ............................................................ 78 79 79 Comparative indicators Labor force data 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. Employment status o f the total population, data seasonally ad ju sted .................................................................................................................. Employment status of the civilian population, data seasonally adjusted ............................................................................................................. Selected employment indicators, data seasonally adjusted ................................................................................................................................... Selected unemployment indicators, data seasonally adjusted .............................................................................................................................. Unemployment rates by sex and age, data seasonally adjusted ............................... Unemployed persons by reason for unemployment, data seasonally ad ju sted .................................................................... Duration o f unemployment, data seasonally adjusted ............................................................................................................................................ Unemployment rates of civilian workers, by State ................................................................................................................................................ Employment o f workers by State ...................................................................... Employment o f workers by industry, data seasonally adjusted.................................................................................................. Average weekly hours by industry, data seasonally adjusted .............................................................................................................................. Average hourly earnings by industry ......................................................................................................................................................................... Average weekly earnings by industry ................................................................................................................................. ........................................ Hourly Earnings Index by industry............................................................. ................................................................................................................ Indexes o f diffusion: proportion of industries in which employment increased, seasonally adjusted ...................................................... Annual data: Employment status o f the noninstitutional population .................................................. Annual data: Employment levels by industry ........................................................................................................................................................ Annual data: Average hours and earnings levels by industry............................................................................................................................. 80 81 82 83 84 84 84 85 85 86 87 88 89 89 90 90 90 91 Labor compensation and collective bargaining data 22. 23. 24. 25. 26. 27. 28. 29. Employment Cost Index, compensation, by occupation and industry group .................................................................................................. Employment Cost Index, wages and salaries, by occupation and industry g r o u p ......................................................................................... Employment Cost Index, private nonfarm workers, by bargaining status, region, and area s i z e .............................................................. Specified compensation and wage adjustments from contract settlements, and effective wage adjustments, situations covering 1,000 workers or more ..................................................................................................................... ................................... .... Average specified compensation and wage adjustments, bargaining situations covering 1,000 workers or m o r e ................................. Average effective wage adjustments, bargaining situations covering 1,000 workers or more .................................................................. Specified compensation and wage adjustments, State and local government bargaining situations covering 1,000 workers or more .......................................................................................................... ................................................... Work stoppages involving 1,000 workers or more ................................................................................................................................................ 92 93 94 94 95 96 96 97 Price data 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. Consumer Price Index: U .S. city average, by expenditure category and commodity and service g ro u p s................................................ Consumer Price Index: U .S. city average and local data, all ite m s ...................................................................................... Annual data: Consumer Price Index, all items and major groups ......................................... Producer Price Indexes by stage of processing ................................................................. ......................................................, ...................... .. Producer Price Indexes, by durability of product .............................................................................................................................. .................... Annual data: Producer Price Indexes by stage o f p ro cessin g ...................................... ........................ ................... .......................................... U .S. export price indexes by Standard International Trade C lassification ....................................................................................................... U .S. import price indexes by Standard International Trade C lassification....................................................................................................... U .S. export price indexes by end-use category ................................................... U .S. import price indexes by end-use ca teg o ry .................. U .S. export price indexes by Standard Industrial C lassification......................................................................................................................... U .S. import price indexes by Standard Industrial Classification ....................................................................................................................... https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 98 101 102 103 104 104 105 106 107 107 107 108 67 MONTHLY LABOR April 1988 • Current Labor Statistics Contents—Continued Productivity data 42. Indexes of productivity, hourly compensation, and unit costs, data seasonally adjusted ............................................................................. 43. Annual indexes of multifactor productivity .............................................................................................................................................................. 44. Annual indexes of productivity, hourly compensation, unit costs, and p r ic e s................................................................................................. 108 109 110 International comparisons 45. Unemployment rates in nine countries, data seasonally adjusted ........................................................................................................................ 46. Annual data: Employment status o f civilian working-age population, ten countries .................................................................................... 47. Annual indexes of productivity and related measures, twelve countries ......... ................................................................................................. Ill 112 113 Injury and illness data 48. Annual data: Occupational injury and illness incidence r a tes............................................................................................................................... Schedule of release dates for S e r ie s b l s 114 statistical series R e le a s e P e r io d R e le a s e P e r io d R e le a s e P e r io d MLR t a b le d a te c o v e re d d a te c o v e re d d a te c o v e re d num ber 1; 4-21 Employment situation ................................. April 1 March May 6 April June 3 May Producer Price In d e x .................................... April 15 March May 13 April June 10 May 2; 3 3 -3 5 Consumer Price In d e x ................................. April 20 March May 20 April June 21 May 2; 3 0 -3 2 Real earnings ............................................... April 20 March May 20 April June 21 May 14-17 Major collective bargaining settlements ............................................... April 26 1st quarter 3 ,2 5 -2 8 Employment Cost Index ............................ April 26 1st quarter 1 -3 ;2 2 -2 4 U.S. Import and Export Price Ind e xes............................................. April 28 1st quarter 36-41 Productivity and cost: Nonfarm business and manufacturing . . Nonfinancial co rp ora tio ns........................ 68 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis May 2 1st quarter 2; 4 2 -4 4 Ju n e 6 1st quarter 2; 4 2-44 NOTES ON CURRENT LABOR STATISTICS This section o f the Review presents the principal statistical series collected and calculated by the Bureau of Labor Statistics: series on labor force, employment, unemployment, collective bargaining settlements, consumer, producer, and international prices, productivity, international comparisons, and injury and illness statistics. In the notes that follow, the data in each group o f tables are briefly described, key definitions are given, notes on the data are set forth, and sources of additional information are cited. Adjustments for price changes. Some data— such as the Hourly Earnings Index in table 17— 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 o f $3 and a current price index number of 150, where 1977 = 100, the hourly rate expressed in 1977 dollars is $2 ($3/150 X 100 = $2). The $2 (or any other resulting values) are described as “real,” “constant,” or “ 1977” dollars. General notes Additional information The following notes apply to several tables in this section: Seasonal adjustment. Certain monthly and quarterly data are adjusted to eliminate the effect on the data of such factors as climatic conditions, industry production schedules, opening and closing of schools, holiday buying periods, and vacation practices, which might prevent short-term evaluation o f the statistical series. Tables containing data that have been adjusted are identified as “seasonally adjusted.” (All other data are not seasonally adjusted.) Seasonal effects are estimated on the basis of past experience. When new seasonal factors are computed each year, revisions may affect seasonally adjusted data for several preceding years. (Season ally adjusted data appear in tables 1 -3 , 4 -1 0 , 13, 14, 17, and 18.) Begin ning in January 1980, the bls introduced two major modifications in the seasonal adjustment methodology for labor force data. First, the data are seasonally adjusted with a procedure called x - n a r i m a , which was devel oped at Statistics Canada as an extension of the standard x - ii method previously used by bls. A detailed description of the procedure appears in The x - u a r im a Seasonal Adjustment Method by Estela Bee Dagum (Statis tics Canada, Catalogue No. 12-564E, February 1980). The second change is that seasonal factors are calculated for use during the first 6 months of the year, rather than for the entire year, and then are calculated at midyear for the July-December period. However, revisions o f historical data con tinue to be made only at the end o f each calendar year. Seasonally adjusted labor force data in tables 1 and 4 -1 0 were revised in the February 1988 issue of the Review, to reflect experience through 1987. Annual revisions o f the seasonally adjusted payroll data shown in tables 13, 14, and 18 were made in the July 1987 Review using the X - i i a r im a seasonal adjustment methodology. New seasonal factors for productivity data in table 42 are usually introduced in the September issue. Seasonally adjusted indexes and percent changes from month to month and from quarter to quarter are published for numerous Consumer and Producer Price Index series. However, seasonally adjusted indexes are not published for the U .S. average All Items c p i . Only seasonally adjusted percent changes are available for this series. Data that supplement the tables in this section are published by the Bureau in a variety of sources. News releases provide the latest statistical information published by the Bureau; the major recurring releases are published according to the schedule preceding these general notes. More information about labor force, employment, and unemployment data and the household and establishment surveys underlying the data are available in Employment and Earnings, a monthly publication of the Bureau. More data from the household survey are published in the two-volume data book— Labor Force Statistics D erived From the Current Population Sur vey, Bulletin 2096. More data from the establishment survey appear in two data books— Employment, Hours, and Earnings, United States, and Em ployment, Hours, and Earnings, States and Areas, and the annual supple ments to these data books. More detailed information on employee com pensation and collective bargaining settlements is published in the monthly periodical, Current Wage Developments. More detailed data on consumer and producer prices are published in the monthly periodicals, The c p i D etailed Report, and Producer Prices and Price Indexes. Detailed data on all of the series in this section are provided in the Handbook o f Labor Statistics, which is published biennally by the Bureau, bls bulletins are issued covering productivity, injury and illness, and other data in this section. Finally, the Monthly Labor Review carries analytical articles on annual and longer term developments in labor force, employment, and unemployment; employee compensation and collective bargaining; prices; productivity; international comparisons; and injury and illness data. Symbols p = preliminary. To increase the timeliness of some series, prelim inary figures are issued based on representative but incom plete returns. r = revised. Generally, this revision reflects the availability o f later data but may also reflect other adjustments, n.e.c. = not elsewhere classified, n.e.s. = not elsewhere specified. COMPARATIVE INDICATORS (Tables 1-3) Comparative indicators tables provide an overview and comparison of major bls statistical series. Consequently, although many o f the included series are available monthly, all measures in these comparative tables are presented quarterly and annually. Labor market indicators include employment measures from two ma jor surveys and information on rates of change in compensation provided by the Employment Cost Index ( e c i ) program. The labor force participation rate, the employment-to-population ratio, and unemployment rates for major demographic groups based on the Current Population (“household ”) Survey are presented, while measures of employment and average weekly hours by major industry sector are given using nonagricultural payroll data. The Employment Cost Index (compensation), by major sector and by https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis bargaining status, is chosen from a variety of bls compensation and wage measures because it provides a comprehensive measure of employer costs for hiring labor, not just outlays for wages, and it is not affected by employment shifts among occupations and industries. Data on changes in compensation, prices, and productivity are pre sented in table 2. Measures of rates of change o f compensation and wages from the Employment Cost Index program are provided for all civilian nonfarm workers (excluding Federal and household workers) and for all private nonfarm workers. Measures of changes in: consumer prices for all urban consumers; producer prices by stage of processing; and the overall export and import price indexes are given. Measures of productivity (output per hour of all persons) are provided for major sectors. 69 MONTHLY LABOR REVIEW April 1988 • Current Labor Statistics Alternative measures of wage and compensation rates of change, which reflect the overall trend in labor costs, are summarized in table 3. Differences in concepts and scope, related to the specific purposes o f the series, contribute to the variation in changes among the individual mea sures. Notes on the data Definitions o f each series and notes on the data are contained in later sections of these notes describing each set of data. For detailed descriptions o f each data series, see b l s Handbook o f Methods, Volumes I and II, Bulletins 2134-1 and 2 1 34-2 (Bureau of Labor Statistics, 1982 and 1984, respectively), as well as the additional bulletins, articles, and other publi cations noted in the separate sections of the R eview ’s “Current Labor Statistics N otes.” Historical data for many series are provided in the Hand book o f Labor Statistics, Bulletin 2217 (Bureau of Labor Statistics, 1985). Users may also wish to consult M ajor Programs, Bureau of Labor Statis tics, Report 718 (Bureau of Labor Statistics, 1985). EMPLOYMENT AND UNEMPLOYMENT DATA (Tables 1; 4-21) Household survey data Description of the series in this section are obtained from the Current Population Survey, a program o f personal interviews conducted monthly by the Bureau o f the Census for the Bureau of Labor Statistics. The sample consists of about 59,500 households selected to represent the U .S. population 16 years o f age and older. Households are interviewed on a rotating basis, so that three-fourths o f the sample is the same for any 2 consecutive months. the various data series appear in the Explanatory Notes of Employment and Earnings. Data in tables 4 -1 0 are seasonally adjusted, based on the seasonal experience through December 1987. em plo ym en t d a t a Definitions Employed persons include (1) all civilians 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. Members o f the Armed Forces stationed in the United States are also included in the employed total. A person working at more than one job is counted only in the job at which he or she worked the greatest number o f hours. Unemployed persons 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 overall unem ployment rate represents the number unemployed as a percent of the labor force, including the resident Armed Forces. The civilian unemployment rate represents the number unemployed as a percent of the civilian labor force. The labor force consists of all employed or unemployed civilians plus members o f the Armed Forces stationed in the United States. Persons not in the labor force are those not classified as employed or unemployed; this group includes persons who are retired, those engaged in their own house work, those not working while attending school, those unable to work because o f long-term illness, those discouraged from seeking work because o f personal or job-market factors, and those who are voluntarily idle. The noninstitutional population 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, and members of the Armed Forces stationed in the United States. The labor force participation rate is the proportion o f the noninstitutional population that is in the labor force. The employment-population ratio is total employment (including the resident Armed Forces) as a percent of the noninstitutional population. 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 comparabil ity o f historical data. A description of these adjustments and their effect on 70 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Additional sources of information For detailed explanations o f the data, see b l s Handbook o f M ethods, Bulletin 2134-1 (Bureau of Labor Statistics, 1982), chapter 1, and for additional data, Handbook o f Labor S tatistics, Bulletin 2217 (Bureau of Labor Statistics, 1985). A detailed description o f the Current Population Survey as well as additional data are available in the monthly Bureau of Labor Statistics periodical, Employment and Earnings. Historical data from 1948 to 1981 are available in Labor Force Statistics D erived from the Current Population Survey: A D atabook, Vols. I and II, Bulletin 2096 (Bureau of Labor Statistics, 1982). 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 surveys,” Monthly Labor Review, December 1969, pp. 9 -2 0 . Establishment survey data Description of the series e a r n in g s d a t a in this section are compiled from payroll records reported monthly on a voluntary basis to the Bureau of Labor Statistics and its cooperating State agencies by more than 290,000 establishments representing all industries except agriculture. In most indus tries, the sampling probabilities are based on the size of the establishment; most large establishments are therefore in the sample. (An establishment is not necessarily a firm; it may be a branch plant, for example, or ware house.) Self-employed persons and others not on a regular civilian payroll are outside the scope o f the survey because they are excluded from estab lishment records. This largely accounts for the difference in employment figures between the household and establishment surveys. E m p lo y m e n t , hours, a n d Definitions An establishment is an economic unit which produces goods or services (such as a factory or store) at a single location and is engaged in one type of economic activity. Employed persons are all persons who received pay (including holiday and sick pay) for any part o f the payroll period including the 12th o f the month. Persons holding more than one job (about 5 percent o f all persons in the labor force) are counted in each establishment which reports them. Production workers in manufacturing include working supervisors and all nonsupervisory workers closely associated with production operations. Those workers mentioned in tables 12-17 include production workers in manufacturing and mining; construction workers in construction; and non supervisory workers in the following industries: transportation and public utilities; wholesale and retail trade; finance, insurance, and real estate; and services. These groups account for about four-fifths of the total employ ment on private nonagricutural payrolls. Earnings are the payments production or nonsupervisory workers re ceive during the survey period, including premium pay for overtime or late-shift work but excluding irregular bonuses and other special payments. Real earnings are earnings adjusted to reflect the effects of changes in consumer prices. The deflator for this series is derived from the Consumer Price Index for Urban Wage Earners and Clerical Workers ( c p i - w ). The Hourly Earnings Index is calculated from average 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 o f changes and seasonal factors in the proportion of workers in high-wage and low-wage industries. Hours represent the average weekly hours o f production or nonsupervi sory workers for which pay was received and are different from standard or scheduled hours. Overtime hours represent the portion of average weekly hours which was in excess of regular hours and for which overtime premiums were paid. The Diffusion Index, introduced in the May 1983 R eview , represents the percent o f 185 nonagricultural industries in which employment was rising over the indicated period. One-half of the industries with unchanged employment are counted as rising. In line with Bureau practice, data for the 1-, 3-, and 6-month spans are seasonally adjusted, while those for the 12-month span are unadjusted. The diffusion index is useful for measur ing the dispersion o f economic gains or losses and is also an economic indicator. Notes on the data Establishment data collected by the Bureau of Labor Statistics are peri odically adjusted to com prehensive counts o f em ploym ent (called “benchmarks”). The latest complete adjustment was made with the release o f May 1987 data, published in the July 1987 issue of the Review. Conse quently, data published in the Review prior to that issue are not necessarily comparable to current data. Unadjusted data have been revised back to April 1985; seasonally adjusted data have been revised back to January 1982. These revisions were published in the Supplement to Employment and Earnings (Bureau o f Labor Statistics, 1987). Unadjusted data from April 1986 forward, and seasonally adjusted data from January 1983 for ward are subject to revision in future benchmarks. In the establishment survey, estimates for the 2 most recent months are based on incomplete returns and are published as preliminary in the tables (13 to 18 in the R eview). When all returns have been received, the esti mates are revised and published as final in the third month of their appear ance. Thus, August data are published as preliminary in October and November and as final in December. For the same reason, quarterly estab lishment data (table 1) are preliminary for the first 2 months of publication and final in the third month. Thus, second-quarter data are published as preliminary in August and September and as final in October. Additional sources of information Detailed national data from the establishment survey are published monthly in the b ls periodical, Employment and Earnings. Earlier compara ble unadjusted and seasonally adjusted data are published in Employment, Hours, and Earnings, United States, 1909-84, Bulletin 1312-12 (Bureau of Labor Statistics, 1985) and its annual supplement. For a detailed discus sion of the methodology of the survey, see b l s Handbook o f Methods, Bulletin 2134-1 (Bureau of Labor Statistics, 1982), chapter 2. For addi tional data, see Handbook o f Labor Statistics, Bulletin 2217 (Bureau of Labor Statistics, 1985). 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 surveys,” Monthly Labor Review, December 1969, pp. 9 -2 0 . Unemployment data by State Description of the series Data presented in this section are obtained from two major sources— the Current Population Survey ( cps ) and the Local Area Unemployment Statis tics ( l a u s ) program, which is conducted in cooperation with State employ ment security agencies. Monthly estimates of the labor force, employment, and unemployment for States and sub-State areas are a key indicator of local economic condi tions and form the basis for determining the eligibility of an area for benefits under Federal economic assistance programs such as the Job Train ing Partnership Act and the Public Works and Economic Development Act. Insofar as possible, the concepts and definitions underlying these data are those used in the national estimates obtained from the c p s . Notes on the data Data refer to State of residence. Monthly data for 11 States— California, Florida, Illinois, Massachusetts, Michigan, New York, New Jersey, North Carolina, Ohio, Pennsylvania, and Texas— are obtained directly from the c ps , because the size of the sample is large enough to meet bls standards of reliability. Data for the remaining 39 States and the District o f Columbia are derived using standardized procedures established by b l s . Once a year, estimates for the 11 States are revised to new population controls. For the remaining States and the District of Columbia, data are benchmarked to annual average cps levels. Additional sources of information Information on the concepts, definitions, and technical procedures used to develop labor force data for States and sub-State areas as well as addi tional data on sub-States are provided in the monthly Bureau of Labor Statistics periodical, Employment and Earnings, and the annual report, Geographic Profile o f Employment and Unemployment (Bureau of Labor Statistics). See also b l s Handbook o f Methods, Bulletin 2134-1 (Bureau o f Labor Statistics, 1982), chapter 4. COMPENSATION AND WAGE DATA (Tables 1-3; 22-29) C o m p e n s a t io n a n d w a g e d a t a are gathered by the Bureau from business establishments, State and local governments, labor unions, collective bar gaining agreements on file with the Bureau, and secondary sources. Employment Cost Index Description of the series The Employment Cost Index ( e c i ) is a quarterly measure of the rate of change in compensation per hour worked and includes wages, salaries, and employer costs o f employee benefits. It uses a fixed market basket of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis labor— similar in concept to the Consumer Price Index’s fixed market basket of goods and services— to measure change over time in employer costs of employing labor. The index is not seasonally adjusted. Statistical series on total compensation costs and on wages and salaries are available for private nonfarm workers excluding proprietors, the selfemployed. and household workers. Both series are also available for State and local government workers and for the civilian nonfarm economy, which consists of private industry and State and local government workers combined. Federal workers are excluded. The Employment Cost Index probability sample consists of about 2,200 private nonfarm establishments providing about 12,000 occupational ob servations and 700 State and local government establishments providing 71 MONTHLY LABOR REVIEW April 1988 • C u rren t L a b o r S ta tistics 3,500 occupational observations selected to represent total employment in each sector. On average, each reporting unit provides wage and compensa tion information on five well-specified occupations. Data are collected each quarter for the pay period including the 12th day of March, June, Septem ber, and December. Beginning with June 1986 data, fixed employment weights from the 1980 Census o f Population are used each quarter to calculate the indexes for civilian, private, and State and local governments. (Prior to June 1986, the employment weights are from the 1970 Census o f Population.) These fixed weights, also used to derive all of the industry and occupation series indexes, ensure that changes in these indexes reflect only changes in com pensation, not employment shifts among industries or occupations with different levels o f wages and compensation. For the bargaining status, region, and metropolitan/nonmetropolitan area series, however, employ ment data by industry and occupation are not available from the census. Instead, the 1980 employment weights are reallocated within these series each quarter based on the current sample. Therefore, these indexes are not strictly comparable to those for the aggregate, industry, and occupation series. Definitions Total compensation costs include wages, salaries, and the employer’s costs for employee benefits. Wages and salaries consist of earnings before payroll deductions, in cluding production bonuses, incentive earnings, commissions, and cost-ofliving adjustments. Benefits include the cost to employers for paid leave, supplemental pay (including nonproduction bonuses), insurance, retirement and savings plans, and legally required benefits (such as Social Security, workers’ compensation, and unemployment insurance). Excluded from wages and salaries and employee benefits are such items as payment-in-kind, free room and board, and tips. Notes on the data The Employment Cost Index data series began in the fourth quarter of 1975, with the quarterly percent change in wages and salaries in the private nonfarm sector. Data on employer costs for employee benefits were in cluded in 1980 to produce, when combined with the wages and salaries series, a measure o f the percent change in employer costs for employee total compensation. State and local government units were added to the eci coverage in 1981, providing a measure of total compensation change in the civilian nonfarm economy (excluding Federal employees). Historical in dexes (June 1981 = 100) of the quarterly rates of change are presented in the May issue o f the bls monthly periodical, Current Wage Developments. (wage and benefit costs) and wages alone, quarterly for private industry and semiannually for State and local government. Compensation measures cover all collective bargaining situations involving 5,000 workers or more and wage measures cover all situations involving 1,000 workers or more. These data, covering private nonagricultural industries and State and local governments, are calculated using information obtained from bargaining agreements on file with the Bureau, parties to the agreements, and second ary sources, such as newspaper accounts. The data are not seasonally adjusted. Settlement data are measured in terms of future specified adjustments: those that will occur within 12 months after contract ratification— firstyear— and all adjustments that will occur over the life of the contract expressed as an average annual rate. Adjustments are worker weighted. Both first-year and over-the-life measures exclude wage changes that may occur under cost-of-living clauses that are triggered by future movements in the Consumer Price Index. Effective wage adjustments measure all adjustments occurring in the reference period, regardless o f the settlement date. Included are changes from settlements reached during the period, changes deferred from con tracts negotiated in earlier periods, and changes under cost-of-living adjust ment clauses. Each wage change is worker weighted. The changes are prorated over all workers under agreements during the reference period yielding the average adjustment. Definitions Wage rate changes are calculated by dividing newly negotiated wages by the average hourly earnings, excluding overtime, at the time the agree ment is reached. Compensation changes are calculated by dividing the change in the value o f the newly negotiated wage and benefit package by existing average hourly compensation, which includes the cost o f previ ously negotiated benefits, legally required social insurance programs, and average hourly earnings. Compensation changes are calculated by placing a value on the benefit portion of the settlements at the time they are reached. The cost estimates are based on the assumption that conditions existing at the time o f settle ment (for example, methods of financing pensions or composition o f labor force) will remain constant. The data, therefore, are measures of negotiated changes and not of total changes in employer cost. Contract duration runs from the effective date of the agreement to the expiration date or first wage reopening date, if applicable. Average annual percent changes over the contract term take account o f the compounding of successive changes. Additional sources of information Notes on the data For a more detailed discussion of the Employment Cost Index, see the Handbook o f Methods, Bulletin 2134-1 (Bureau of Labor Statistics, 1982), chapter 11, and the fo llo w in g M o n th ly L a b o r R e v ie w articles: “Employment Cost Index: a measure o f change in the ‘price o f labor’,” July 1975; “How benefits will be incorporated into the Employment Cost In dex,” January 1978; “Estimation procedures for the Employment Cost Index,” May 1982; and “Introducing new weights for the Employment Cost Index,” June 1985. Data on the eci are also available in bls quarterly press releases issued in the month following the reference months of March, June, September, and December; and from the Handbook o f Labor Statistics, Bulletin 2217 (Bureau o f Labor Statistics, 1985). Care should be exercised in comparing the size and nature o f the settle ments in State and local government with those in the private sector because of differences in bargaining practices and settlement characteristics. A principal difference is the incidence of cost-of-living adjustment (cola) clauses which cover only about 2 percent of workers under a few local government settlements, but cover 50 percent of workers under private sector settlements. Agreements without cola’s tend to provide larger speci fied wage increases than those with cola’s . Another difference is that State and local government bargaining frequently excludes pension benefits which are often prescribed by law. In the private sector, in contrast, pensions are typically a bargaining issue. C ollective bargaining settlem ents Description of the series Collective bargaining settlements data provide statistical measures of negotiated adjustments (increases, decreases, and freezes) in compensation 72 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Additional sources of information For a more detailed discussion on the series, see the b l s Handbook o f Methods, Bulletin 2134-1 (Bureau of Labor Statistics, 1982), chapter 10. Comprehensive data are published in press releases issued quarterly (in January, April, July, and October) for private industry, and semi- annually (in February and August) for State and local government. Histor ical data and additional detailed tabulations for the prior calendar year appear in the April issue of the bls monthly periodical, C u r r e n t W a g e monthly periodical, C u r r e n t W a g e D e v e lo p m e n ts . Historical data appear in the b l s H a n d b o o k o f L a b o r S ta t is tic s . D e v e lo p m e n ts . Other compensation data Work stoppages Other bls data on pay and benefits, not included in the Current Labor Statistics section o f the M o n th ly L a b o r R e v ie w , appear in and consist o f the following: Description of the series Data on work stoppages measure the number and duration of major strikes or lockouts (involving 1,000 workers or more) occurring during the month (or year), the number of workers involved, and the amount o f time lost because o f stoppage. Data are largely from newspaper accounts and cover only establishments directly involved in a stoppage. They do not measure the indirect or second ary effect o f stoppages on other establishments whose employees are idle owing to material shortages or lack of service. Definitions Number of stoppages: The number of strikes and lockouts involving 1,000 workers or more and lasting a full shift or longer. Workers involved: The number o f workers directly involved in the stoppage. Number of days idle: The aggregate number o f workdays lost by workers involved in the stoppages. Days of idleness as a percent of estimated working time: Aggregate workdays lost as a percent of the aggregate number of standard workdays in the period multiplied by total employment in the period. Notes on the data This series is not comparable with the one terminated in 1981 that covered strikes involving six workers or more. Additional sources of information Data for each calendar year are reported in a bls press release issued in the first quarter o f the following year. Monthly data appear in the b l s I n d u s tr y W a g e S u r v e y s provide data for specific occupations selected to represent an industry’s wage structure and the types of activities performed by its workers. The Bureau collects information on weekly work schedules, shift operations and pay differentials, paid holiday and vacation practices, and information on incidence o f health, insurance, and retirement plans. Reports are issued throughout the year as the surveys are completed. Summaries of the data and special analyses also appear in the M o n th ly L a b o r R e v ie w . A r e a W a g e S u r v e y s annually provide data for selected office, clerical, professional, technical, maintenance, toolroom, powerplant, material movement, and custodial occupations common to a wide variety o f indus tries in the areas (labor markets) surveyed. Reports are issued throughout the year as the surveys are completed. Summaries of the data and special analyses also appear in the R e v ie w . T h e N a tio n a l S u r v e y o f P r o fe s s io n a l, A d m in is tr a tiv e , T e c h n ic a l, a n d C le r ic a l P a y provides detailed information annually on salary levels and distributions for the types of jobs mentioned in the survey’s title in private employment. Although the definitions of the jobs surveyed reflect the duties and responsibilities in private industry, they are designed to match specific pay grades of Federal white-collar employees under the General Schedule pay system. Accordingly, this survey provides the legally re quired information for comparing the pay of salaried employees in the Federal civil service with pay in private industry. (See Federal Pay Com parability Act of 1970, 5 u.s.c. 5305.) Data are published in a bls news release issued in the summer and in a bulletin each fall; summaries and analytical articles also appear in the R e v ie w . E m p lo y e e B e n e fits S u r v e y provides nationwide information on the inci dence and characteristics o f employee benefit plans in medium and large establishments in the United States, excluding Alaska and Hawaii. Data are published in an annual bls news release and bulletin, as well as in special articles appearing in the R e v ie w . PRICE DATA (Tables 2; 30-41) Price data 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 (1982 = 100 or 1982-84 = 100), unless otherwise noted). Consumer Price Indexes Description of the series The Consumer Price Index (cpi) is a measure of the average change in the prices paid by urban consumers for a fixed market basket o f goods and services. The cpi is calculated monthly for two population groups, one consisting only o f urban households whose primary source of income is derived from the employment o f wage earners and clerical workers, and the other consisting o f all urban households. The wage earner index (cpi- w) is a continuation o f the historic index that was introduced well over a halfcentury ago for use in wage negotiations. As new uses were developed for the cpi in recent years, the need for a broader and more representative index became apparent. The all urban consumer index (cpi- u), introduced in 1978, is representative o f the 1982-84 buying habits of about 80 percent o f the noninstitutional population of the United States at that time, com pared with 32 percent represented in the cpi- w . In addition to wage earners https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis and clerical workers, the cpi- u covers professional, managerial, and tech nical 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, trans portation fares, doctors’ and dentists’ fees, and other goods and services that people buy for day-to-day living. The quantity and quality o f these items are kept essentially unchanged between major revisions so that only price changes will be measured. All taxes directly associated with the purchase and use of items are included in the index. Data collected from more than 21,000 retail establishments and 60,000 housing units in 91 urban areas across the country are used to develop the “U .S. city average.” Separate estimates for 27 major urban centers are presented in table 31. The areas listed are as indicated in footnote 1 to the table. The area indexes measure only the average change in prices for each area since the base period, and do not indicate differences in the level of prices among cities. Notes on the data In January 1983, the Bureau changed the way in which homeownership costs are measured for the cpi-U. A rental equivalence method replaced the 73 MONTHLY LABOR REVIEW April 1988 • C u r r e n t L a b o r S ta tis tic s asset-price approach to homeownership costs for that series. In January 1985, the same change was made in the cpi- w . The central purpose of the change was to separate shelter costs from the investment component of homeownership so that the index would reflect only the cost o f shelter services provided by owner-occupied homes. An updated cpi-u and cpi-w were introduced with release of the January 1987 data. Additional sources of information For a discussion o f the general method for computing the cpi, see b l s Handbook o f Methods, Volume II, The Consumer P rice Index, Bulletin 2 1 3 4 -2 (Bureau o f Labor Statistics, 1984). The recent change in the mea surement o f homeownership costs is discussed in Robert Gillingham and Walter Lane, “Changing the treatment of shelter costs for homeowners in the cpi,” Monthly Labor Review, July 1982, pp. 9 -1 4 . An overview o f the recently introduced revised cpi, reflecting 1982-84 expenditure patterns, is contained in The Consumer Price Index: 1987 R evision, Report 736 (Bu reau o f Labor Statistics, 1987). Additional detailed cpi data and regular analyses of consumer price changes are provided in the c p i D etailed Report, a monthly publication of the Bureau. Historical data for the overall cpi and for selected groupings may be found in the Handbook o f Labor S tatistics, Bulletin 2217 (Bureau o f Labor Statistics, 1985). Producer Price Indexes Description of the series Producer Price Indexes (ppi) measure average changes in prices re ceived in primary markets of the United States by producers of commodi ties in all stages o f processing. The sample used for calculating these indexes currently contains about 3,100 commodities and about 75,000 quotations per month selected to represent the movement of prices of all commodities produced in the manufacturing, agriculture, forestry, fishing, mining, gas and electricity, and public utilities sectors. The stage of proc essing structure o f Producer Price Indexes organizes products by class of buyer and degree o f fabrication (that is, finished goods, intermediate goods, and crude materials). The traditional commodity structure of ppi organizes products by similarity of end use or material composition. To the extent possible, prices used in calculating Producer Price Indexes apply to the first significant commercial transaction in the United States from the production or central marketing point. Price data are generally collected monthly, primarily by mail questionnaire. Most prices are ob tained directly from producing companies on a voluntary and confidential basis. Prices generally are reported for the Tuesday of the week containing the 13th day o f the month. Since January 1987, price changes for the various commodities have been averaged together with implicit quantity weights representing their importance in the total net selling value of all commodities as of 1982. The detailed data are aggregated to obtain indexes for stage-of-processing groupings, commodity groupings, durability-of-product groupings, and a number of special composite groups. All Producer Price Index data are subject to revision 4 months after original publication. Notes on the data Beginning with the January 1986 issue, the Review is no longer present ing tables o f Producer Price Indexes for commodity groupings, special composite groups, or sic industries. However, these data will continue to be presented in the Bureau’s monthly publication Producer Price Indexes. The Bureau has completed the first major stage o f its comprehensive overhaul o f the theory, methods, and procedures used to construct the Producer Price Indexes. Changes include the replacement of judgment sampling with probability sampling techniques; expansion to systematic 74 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis coverage of the net output of virtually all industries in the mining and manufacturing sectors; a shift from a commodity to an industry orientation; the exclusion of imports from, and the inclusion of exports in, the survey universe; and the respecification of commodities priced to conform to Bureau of the Census definitions. These and other changes have been phased in gradually since 1978. The result is a system of indexes that is easier to use in conjunction with data on wages, productivity, and employ ment and other series that are organized in terms of the Standard Industrial Classification and the Census product class designations. Additional sources of information For a discussion of the methodology for computing Producer Price In dexes, see b l s Handbook o f M ethods, Bulletin 2134-1 (Bureau o f Labor Statistics, 1982), chapter 7. Additional detailed data and analyses of price changes are provided monthly in Producer Price Indexes. Selected historical data may be found in the Handbook o f Labor Statistics, Bulletin 2217 (Bureau of Labor Statistics, 1985). International Price Indexes Description of the series The bls International Price Program produces quarterly export and import price indexes for nonmilitary goods traded between the United States and the rest of the world. The export price index provides a measure of price change for all products sold by U .S. residents to foreign buyers. (“Residents” is defined as in the national income accounts: it includes corporations, businesses, and individuals but does not require the organiza tions to be U .S. owned nor the individuals to have U .S. citizenship.) The import price index provides a measure of price change for goods purchased from other countries by U .S. residents. With publication of an all-import index in February 1983 and an all-export index in February 1984, all U .S. merchandise imports and exports now are represented in these indexes. The reference period for the indexes is 1977 = 100, unless otherwise indicated. The product universe for both the import and export indexes includes raw materials, agricultural products, semifinished manufactures, and finished manufactures, including both capital and consumer goods. Price data for these items are collected quarterly by mail questionnaire. In nearly all cases, the data are collected directly from the exporter or importer, al though in a few cases, prices are obtained from other sources. To the extent possible, the data gathered refer to prices at the U .S. border for exports and at either the foreign border or the U .S. border for imports. For nearly all products, the prices refer to transactions completed during the first 2 weeks of the third month of each calendar quarter— March, June, September, and December. Survey respondents are asked to indicate all discounts, allowances, and rebates applicable to the reported prices, so that the price used in the calculation of the indexes is the actual price for which the product was bought or sold. In addition to general indexes of prices for U .S. exports and imports, indexes are also published for detailed product categories of exports and imports. These categories are defined by the 4- and 5-digit level o f detail of the Standard Industrial Trade Classification System (su e). The calcula tion of indexes by srre category facilitates the comparison of U .S. price trends and sector production with similar data for other countries. Detailed indexes are also computed and published on a Standard Industrial Classifi cation (sic-based) basis, as well as by end-use class. Notes on the data The export and import price indexes are weighted indexes o f the Laspeyres type. Price relatives are assigned equal importance within each weight category and are then aggregated to the srre level. The values assigned to each weight category are based on trade value figures compiled by the Bureau o f the Census. The trade weights currently used to compute both indexes relate to 1980. Because a price index depends on the same items being priced from period to period, it is necessary to recognize when a product’s specifica tions or terms o f transaction have been modified. For this reason, the Bureau’s quarterly questionnaire requests detailed descriptions o f the phys ical and functional characteristics of the products being priced, as well as information on the number of units bought or sold, discounts, credit terms, packaging, class o f buyer or seller, and so forth. When there are changes in either the specifications or terms of transaction o f a product, the dollar value o f each change is deleted from the total price change to obtain the “pure” change. Once this value is determined, a linking procedure is employed which allows for the continued repricing of the item. For the export price indexes, the preferred pricing basis is f.a.s. (free alongside ship) U .S. port of exportation. When firms report export prices f.o.b. (free on board), production point information is collected which enables the Bureau to calculate a shipment cost to the port of exportation. An attempt is made to collect two prices for imports. The first is the import price f.o.b. at the foreign port of exportation, which is consistent with the basis for valuation of imports in the national accounts. The second is the import price c.i.f. (cost, insurance, and freight) at the U .S. port o f impor tation, which also includes the other costs associated with bringing the product to the U .S. border. It does not, however, include duty charges. Additional sources of information For a discussion of the general method of computing International Price Indexes, see b l s Handbook o f M ethods, Bulletin 2134-1 (Bureau o f Labor Statistics, 1982), chapter 8. Additional detailed data and analyses of international price develop ments are presented in the Bureau’s quarterly publication U.S. Import and Export Price Indexes and in occasional Monthly Labor Review articles prepared by b ls analysts. Selected historical data may be found in the Handbook o f Labor Statistics, Bulletin 2217 (Bureau o f Labor Statistics, 1985). PRODUCTIVITY DATA (Tables 2; 42-47) U. S. productivity and related data Description of the series The productivity measures relate real physical output to real input. As such, they encompass a family o f measures which include single factor input measures, such as output per unit of labor input (output per hour) or output per unit o f capital input, as well as measures o f multifactor produc tivity (output per unit o f labor and capital inputs combined). The Bureau indexes show the change in output relative to changes in the various inputs. The measures cover the business, nonfarm business, manufacturing, and nonfinancial corporate sectors. Corresponding indexes of hourly compensation, unit labor costs, unit nonlabor payments, and prices are also provided. Unit profits include corporate profits and the value o f inventory adjust ments per unit of output. Hours of all persons are the total hours paid o f payroll workers, selfemployed persons, and unpaid family workers. Capital services is the flow of services from the capital stock used in production. It is developed from measures o f the net stock of physical assets— equipment, structures, land, and inventories— weighted by rental prices for each type o f asset. Labor and capital inputs combined are derived by combining changes in labor and capital inputs with weights which represent each component’s share of total output. The indexes for capital services and combined units of labor and capital are based on changing weights which are averages of the shares in the current and preceding year (the Tomquist index-number formula). Notes on the data D efinitions Output per hour of all persons (labor productivity) is the value of goods and services in constant prices produced per hour of labor input. Output per unit of capital services (capital productivity) is the value of goods and services in constant dollars produced per unit of capital services input. Multifactor productivity is the ratio output per unit of labor and capital inputs combined. Changes in this measure reflect changes in a number of factors which affect the production process such as changes in technology, shifts in the composition o f the labor force, changes in capacity utilization, research and development, skill and efforts of the work force, manage ment, and so forth. Changes in the output per hour measures reflect the impact o f these factors as well as the substitution of capital for labor. Compensation per hour is the wages and salaries of employees plus employers’ contributions for social insurance and private benefit plans, and the wages, salaries, and supplementary payments for the self-employed (except for nonfinancial corporations in which there are no selfemployed)— the sum divided by hours paid for. Real compensation per hour is compensation per hour deflated by the change in the Consumer Price Index for All Urban Consumers. Unit labor costs are the labor compensation costs expended in the production o f a unit o f output and are derived by dividing compensation by output. Unit nonlabor payments include profits, depreciation, interest, and indirect taxes per unit of output. They are computed by subtracting compensation o f all persons from current dollar value of output and divid ing by output. Unit nonlabor costs contain all the components of unit nonlabor payments except unit profits. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Output measures for the business sector and the nonfarm businesss sector exclude the constant dollar value of owner-occupied housing, rest of world, households and institutions, and general government output from the con stant dollar value o f gross national product. The measures are derived from data supplied by the Bureau of Economic Analysis, U .S. Department of Commerce, and the Federal Reserve Board. Quarterly manufacturing out put indexes are adjusted by the Bureau of Labor Statistics to annual esti mates of output (gross product originating) from the Bureau of Economic Analysis. Compensation and hours data are developed from data o f the Bureau of Labor Statistics and the Bureau of Economic Analysis. The productivity and associated cost measures in tables 4 2 -4 4 describe the relationship between output in real terms and the labor time and capital services involved in its production. They show the changes from period to period in the amount of goods and services produced per unit of input. Although these measures relate output to hours and capital services, they do not measure the contributions of labor, capital, or any other specific factor of production. Rather, they reflect the joint effect of many influ ences, including changes in technology; capital investment; level of output; utilization of capacity, energy, and materials; the organization of produc tion; managerial skill; and the characteristics and efforts of the work force. Additional sources of information Descriptions o f methodology underlying the measurement of output per hour and multifactor productivity are found in the b l s Handbook o f Meth ods , Bulletin 2134-1 (Bureau of Labor Statistics, 1982), chapter 13. His torical data for selected industries are provided in the Bureau’s Handbook o f Labor Statistics , 1985, Bulletin 2217. 75 MONTHLY LABOR REVIEW April 1988 • Current Labor Statistics INTERNATIONAL COMPARISONS (Tables 45-47) Labor force and unemployment Description of the series Tables 45 and 46 present comparative measures of the labor force, employment, and unemployment— approximating U .S. concepts— for the United States, Canada, Australia, Japan, and six European countries. The unemployment statistics (and, to a lesser extent, employment statistics) published by other industrial countries are not, in most cases, comparable to U .S. unemployment statistics. Therefore, the Bureau adjusts the figures for selected countries, where necessary, for all known major definitional differences. Although precise comparability may not be achieved, these adjusted figures provide a better basis for international comparisons than the figures regularly published by each country. Definitions For the principal U .S. definitions of the labor force, employment, and unemployment, see the Notes section on EMPLOYMENT DATA: House hold Survey Data. Notes on the data The adjusted statistics have been adapted to the age at which compulsory schooling ends in each country, rather than to the U .S. standard of 16 years o f age and over. Therefore, the adjusted statistics relate to the population age 16 and over in France, Sweden, and from 1973 onward, the United Kingdom; 16 and over in Canada, Australia, Japan, Germany, the Nether lands, and prior to 1973, the United Kingdom; and 14 and over in Italy. The institutional population is included in the denominator of the labor force participation rates and employment-population ratios for Japan and Ger many; it is excluded for the United States and the other countries. In the U .S. labor force survey, persons on layoff who are awaiting recall to their job are classified as unemployed. European and Japanese layoff practices are quite different in nature from those in the United States; therefore, strict application o f the U .S. definition has not been made on this point. For further information, see Monthly Labor R eview , December 1981, pp. 8 -1 1 . The figures for one or more recent years for France, Germany, Italy, the Netherlands, and the United Kingdom are calculated using adjustment factors based on labor force surveys for earlier years and are considered preliminary. The recent-year measures for these countries are, therefore, subject to revision whenever data from more current labor force surveys become available. Additional sources of information For further information, see International Comparisons o f Unemploy m ent, Bulletin 1979 (Bureau o f Labor Statistics, 1978), Appendix B and unpublished Supplements to Appendix B available on request. The statis tics are also analyzed periodically in the Monthly Labor R eview . Additional historical data, generally beginning with 1959, are published in the Hand book o f Labor Statistics and are available in unpublished statistical supple ments to Bulletin 1979. Manufacturing productivity and labor costs Description of the series Table 47 presents comparative measures of manufacturing labor produc tivity, hourly compensation costs, and unit labor costs for the United 76 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis States, Canada, Japan, and nine European countries. These measures are limited to trend comparisons— that is, intercountry series of changes over time— rather than level comparisons because reliable international com parisons of the levels of manufacturing output are unavailable. Definitions Output is constant value output (value added), generally taken from the national accounts of each country. While the national accounting methods for measuring real output differ considerably among the 12 countries, the use of different procedures does not, in itseff, Connote lack of comparabil ity— rather, it reflects differences among countries in the availability and reliability of underlying data series. Hours refer to all employed persons including the self-employed in the United States and Canada; to all wage and salary employees in the other countries. The U .S. hours measure is hours paid; the hours measures for the other countries are hours worked. Compensation (labor cost) includes all payments in cash or kind made directly to employees plus employer expenditures for legally required in surance programs and contractual and private benefit plans. In addition, for some countries, compensation is adjusted for other significant taxes on payrolls or employment (or reduced to reflect subsidies), even if they are not for the direct benefit of workers, because such taxes are regarded as labor costs. However, compensation does not include all items o f labor cost. The costs of recruitment, employee training, and plant facilities and services— such as cafeterias and medical clinics— are not covered because data are not available for most countries. Self-employed workers are in cluded in the U .S. and Canadian compensation figures by assuming that their hourly compensation is equal to the average for wage and salary employees. Notes on the data For most of the countries, the measures refer to total manufacturing as defined by the International Standard Industrial Classification. However, the measures for France (beginning 1959), Italy (beginning 1970), and the United Kingdom (beginning 1971), refer to manufacturing and mining less energy-related products and the figures for the Netherlands exclude petroleum refining from 1969 to 1976. For all countries, manufacturing includes the activities of government enterprises. The figures for one or more recent years are generally based on current indicators of manufacturing output, employment, hours, and hourly com pensation and are considered preliminary until the national accounts and other statistics used for the long-term measures become available. Additional sources of information For additional information, see the b l s Handbook o f M ethods, Bulletin 2134-1 (Bureau o f Labor Statistics, 1982), chapter 16 and periodic Monthly Labor Review articles. Historical data are provided in the Bureau’s Hand book o f Labor S tatistics, Bulletin 2217, 1985. The statistics are issued twice per year— in a news release (generally in May) and in a Monthly Labor Review article (generally in December). OCCUPATIONAL INJURY AND ILLNESS DATA (Table 48) Description of the series The Annual Survey o f Occupational Injuries and Illnesses is designed to collect data on injuries and illnesses based on records which employers in the following industries maintain under the Occupational Safety and Health Act of 1970: agriculture, forestry, and fishing; oil and gas extraction; construction; manufacturing; transportation and public utilities; wholesale and retail trade; finance, insurance, and real estate; and services. Excluded from the survey are self-employed individuals, farmers with fewer than 11 employees, employers regulated by other Federal safety and health laws, and Federal, State, and local government agencies. Because the survey is a Federal-State cooperative program and the data must meet the needs o f participating State agencies, an independent sam ple is selected for each State. The sample is selected to represent all pri vate industries in the States and territories. The sample size for the survey is dependent upon (1) the characteristics for which estimates are needed; (2) the industries for which estimates are desired; (3) the charac teristics o f the population being sampled; (4) the target reliability of the estimates; and (5) the survey design employed. While there are many characteristics upon which the sample design could be based, the total recorded case incidence rate is used because it is one of the most important characteristics and the least variable; therefore, it re quires the smallest sample size. The survey is based on stratified random sampling with a Neyman allocation and a ratio estimator. The characteristics used to stratify the establishments are the Standard Industrial Classification (sic) code and size o f employment. Definitions Recordable occupational injuries and illnesses are: (1) occupational deaths, regardless o f the time between injury and death, or the length of the illness; or (2) nonfatal occupational illnesses; or (3) nonfatal occupational injuries which involve one or more of the following: loss of consciousness, restriction o f work or motion, transfer to another job, or medical treatment (other than first aid). Occupational injury is any injury such as a cut, fracture, sprain, ampu tation, and so forth, which results from a work accident or from exposure involving a single incident in the work environment. Occupational illness is an abnormal condition or disorder, other than one resulting from an occupational injury, caused by exposure to environ mental factors associated with employment. It includes acute and chronic illnesses or disease which may be caused by inhalation, absorption, inges tion, or direct contact. Lost workday cases are cases which involve days away from work, or days o f restricted work activity, or both. Lost workday cases involving restricted work activity are those cases which result in restricted work activity only. Lost workdays away from work are the number of workdays (consec utive or not) on which the employee would have worked but could not because o f occupational injury or illness. Lost workdays— restricted work activity are the number of workdays (consecutive or not) on which, because of injury or illness: (1) the em ployee was assigned to another job on a temporary basis; or (2) the em https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ployee worked at a permanent job less than full time; or (3) the employee worked at a permanently assigned job but could not perform all duties normally connected with it. The number of days away from work or days of restricted work activity does not include the day of injury or onset of illness or any days on which the employee would not have worked even though able to work. Incidence rates represent the number of injuries and/or illnesses or lost workdays per 100 full-time workers. Notes on the data Estimates are made for industries and employment-size classes and for severity classification: fatalities, lost workday cases, and nonfatal cases without lost workdays. Lost workday cases are separated into those where the employee would have worked but could not and those in which work activity was restricted. Estimates of the number o f cases and the number of days lost are made for both categories. Most of the estimates are in the form of incidence rates, defined as the number of injuries and illnesses, or lost workdays, per 100 full-time em ployees. For this purpose, 200,000 employee hours represent 100 em ployee years (2,000 hours per employee). Only a few of the available measures are included in the Handbook o f Labor Statistics. Full detail is presented in the annual bulletin, Occupational Injuries and Illnesses in the United States, by Industry. Comparable data for individual States are available from the bls Office o f Occupational Safety and Health Statistics. Mining and railroad data are furnished to BLS by the Mine Safety and Health Administration and the Federal Railroad Administration, respec tively. Data from these organizations are included in bls and State publica tions. Federal employee experience is compiled and published by the Occu pational Safety and Health Administration. Data on State and local government employees are collected by about half of the States and territo ries; these data are not compiled nationally. Additional sources of information The Supplementary Data System provides detailed information describ ing various factors associated with work-related injuries and illnesses. These data are obtained from information reported by employers to State workers’ compensation agencies. The Work Injury Report program exam ines selected types o f accidents through an employee survey which focuses on the circumstances surrounding the injury. These data are not included in the Handbook o f Labor Statistics but are available from the bls Office of Occupational Safety and Health Statistics. The definitions o f occupational injuries and illnesses and lost workdays are from Recordkeeping Requirements under the Occupational Safety and Health Act o f 1 9 7 0 . For additional data, see Occupational Injuries and Illnesses in the United States, by Industry, annual Bureau of Labor Statistics bulletin; bls Handbook o f M ethods, Bulletin 2134-1 (Bureau of Labor Statistics, 1982), chapter 17; Handbook o f Labor Statistics, Bulletin 2217 (Bureau of Labor Statistics, 1985), pp. 411-14; annual reports in the Monthly Labor Review , and annual U .S. Department of Labor press releases. 77 MONTHLY LABOR REVIEW April 1988 • C u rren t L a b o r S ta tistics: C o m p a ra tive In dicators 1. Labor market indicators 1987 1986 Selected indicators 1987 1986 I IV III II I IV III II E m p lo y m e n t d a ta Employment status of the civilian noninstitutionalized population (household survey)1 Labor force participation r a te .............................................................. Employment-population r a tio ............................................................... Unemployment rate .............................................................................. Men ....................................................................................................... 16 to 24 years ................................................................................. 25 yekrs and o v e r ........................................................................... Women ................................................................................................. 16 to 24 years ................................................................................. 25 years and o v e r ........................................................................... Unemployment rate, 15 weeks and o v e r ....................................... 65.3 60.7 7.0 6.9 13.7 5.4 7.1 12.8 5.5 1.9 65.6 61.5 6.2 6.2 12.6 4.8 6.2 11.7 4.8 1.7 65.4 60.8 7.0 7.0 13.9 5.4 7.0 12.7 5.4 1.9 65.4 60.9 65.5 61.1 13.4 5.3 7.2 13.1 5.6 1.9 65.2 60.6 7.2 7.0 14.1 5.4 7.3 13.1 5.7 1.9 6.9 13.4 5.4 13.3 5.1 12.5 5.3 1.9 12.5 5.0 65.0 60.5 7.0 6.8 6.8 6.8 6.6 6.6 6.6 65.5 61.4 6.3 6.3 12.9 4.9 6.2 11.8 4.7 1.7 1.8 65.6 61.7 6.0 5.9 12.2 4.6 6.1 11.4 4.7 1.6 65.7 61.9 5.9 5.8 11.9 4.4 6.0 11.1 4.7 1.5 Employment, nonagricultural (payroll data), in thousands:1 Total ........................................................................................................... Private sector ........................................................................................ G oods-producing................................................................................... Manufacturing ..................................................................................... Service-producing ................................................................................. 99,610 82,900 24,681 18,994 74,930 102,112 85,049 24,884 19,112 77,228 98,901 82,299 24,767 19,086 74,134 99,321 82,670 24,702 19,003 74,619 99,804 83,119 24,629 18,939 75,175 100,397 83,498 24,624 18,953 75,773 101,133 84,183 24,733 18,979 76,399 101,708 84,675 24,757 19,015 76,951 102,278 85,240 24,884 19,134 77,394 103,293 86,069 25,164 19,322 78,129 Average hours: Private sector ........................................................................................ Manufacturing .................................................................................. O vertim e.......................................................................................... 34.8 40.7 3.4 34.8 41.0 3.7 34.9 40.7 3.4 34.8 40.7 3.4 34.7 40.7 3.5 34.7 40.8 3.5 34.8 41.0 3.6 34.8 40.9 3.7 34.8 40.9 3.7 34.8 41.2 3.9 3.6 3.2 3.1 3.2 5.2 3.6 3.3 3.1 3.7 4.4 1.1 1.1 1.1 1.1 1.0 .8 .9 .6 .6 1.1 .7 .6 .8 2.8 .6 .6 .5 .6 .8 .9 .7 .7 .7 .7 .3 2.3 .5 .9 2.1 2.8 .5 3.6 1.0 1.2 .2 3.6 .3 .7 .5 .7 .6 1.1 1.1 .6 E m p lo y m e n t C o s t In d e x Percent change in the ECI, compensation: All workers (excluding farm, household, and Federal workers) ...... Private industry workers ..................................................................... Goods-producing2 ............................................................................ Service-producing2 .......................................................................... State and local government w o rk e rs ............................................... Workers by bargaining status (private industry): U n io n ...................................................................................................... Nonunion ............................................................................................... 1 2 Quarterly data seasonally adjusted. Goods-producing industries include mining, construction, and manufacturing. Service- Digitized for 78 FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis .7 .9 .8 1.0 .5 1.3 .8 .5 1.1 producing industries include all other private sector industries. 1.2 1.0 .8 1.0 .8 .7 1.0 2. Annual and quarterly percent changes in compensation, prices, and productivity 1986 Selected measures 1986 1987 1987 I II III IV I II III IV C o m p e n s a t i o n d a t a 1, 2 Employment Cost Index-compensation (wages, salaries, benefits): Civilian nonfarm .......................................................................... Private nonfarm ......................................................................... Employment Cost Index-wages and salaries Civilian nonfarm .......................................................................... Private nonfarm ......................................................................... 3.6 3.2 3.6 3.3 3.5 3.1 3.5 3.3 1.1 1.1 1.0 1.0 1.1 .8 .8 1.1 0.6 .6 .6 .9 .7 .5 1.0 1.0 1.0 .6 .6 .3 1.4 0.7 .7 0.9 1.2 1.0 0.8 .5 .7 1.3 .7 1.2 1.3 0.7 .7 .7 1.0 .6 P r ic e d a t a 1 Consumer Price Index (All urban consumers): All ite m s ...... Producer Price Index: Finished g o o d s ............................................................................ Finished consumer g o o d s ....................................................... Capital equipment ..................................................................... Intermediate materials, supplies, comoonents ...................... Crude m ate rials........................................................................... 1.1 -2.3 -3.5 2.1 -4.4 -8.9 -.5 4.4 2.1 2.5 1.3 5.5 8.8 -3.1 -4.0 .5 .4 .2 -3.0 -7.6 1.1 .8 2.1 -.3 .6 -.7 -.7 .6 -.8 -.2 -.6 -.9 -1.5 .8 .9 .1 1.2 1.6 .2 .3 -.2 1.2 .6 .3 1.9 5.3 1.3 4.2 .3 .0 -.3 1.1 1.0 -1.5 P r o d u c tiv ity d a ta 3 Output per hour of all persons: Business s e c to r......................................................................... Nonfarm business s e c to r ........................................................ Nonfinancial corporations 4 ..................................................... 1.9 .8 2.3 1.9 2.3 “ Annual changes are December-to-December change. Quarterly changes are calculated using the last month of each quarter. Compensation and price data are not seasonally adjusted and the price data are not compounded. 2 Excludes Federal and private household workers. 3 Annual rates of change are computed by comparing annual averages. 3. 2.8 2.6 .9 1.6 1.6 1.3 1.8 .2 -.1 0 1.5 1.5 1.5 1.1 .7 1.6 1.5 .8 .4 .3 .2 1.4 1.4 - Quarterly percent changes reflect annua! rates of change in quarterly in dexes. The data are seasonally adjusted. 4 Output per hour of all employees. - Data not available. Alternative measures of wage and compensation changes Four quarters ended- Quarterly average Components 1987 1986 III IV I Average hourly compensation:1 3.7 3.6 Employment Cost Index-compensatioh: 1.1 .7 .5 .8 .7 3.2 .5 .7 .7 .5 .5 (“) .8 1.5 .2 .2 .1 2.8 2.7 2.7 .9 .7 .7 .5 .7 .3 .4 .5 .7 .5 .8 .2 1.0 .2 .7 .2 2.6 3.0 2.9 1.2 1.0 .6 1.1 2.3 .9 1.3 2.3 .9 2.0 2.1 1.2 1.8 2.9 2.7 2.4 1.7 2.4 4.1 3.9 2.1 .3 .1 2.9 2.8 .8 .7 1.1 .6 1.0 .6 1.1 IV III IV .2 .6 .1 2.1 2.0 (4) .7 .6 1/T .5 .9 .8 .3 .3 .2 2.4 .7 1 2 3 Seasonally adjusted. Excludes Federal and household workers. Limited to major collective bargaining units of 1,000 workers or more. The most recent data are preliminary. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4 8 2.5 I III II IV 3.0 3.6 4.0 1.4 3.3 3.0 3.8 3.6 3.1 3.4 3.6 3.2 2.3 3.5 5.2 3.6 3.2 3.4 3.1 3.4 3.3 3.6 3.3 3.6 5.2 3.6 5.0 3.3 3.0 1.9 3.4 4.7 3.7 4.2 3.6 4.4 3.5 3.1 2.3 3.4 5.4 2.3 .5 3.5 3.1 3.5 3.2 1.7 3.5 5.2 3.2 3.0 1.7 3.3 5.0 3.4 3.3 1.7 3.8 4.1 3.5 3.3 .3 .5 1.7 .4 2.8 1.6 .2 1.2 1.8 1.7 3.4 2.4 .9 1.4 Negotiated wage and benefit adjustments from settlements:5 1.2 1987 1986 III 2.8 1.0 .5 1.1 .8 1.0 1.0 .4 1.2 .8 .3 .7 1.1 .7 .6 .1 Negotiated wage adjustments from settlements:3 .6 .6 .8 .6 .5 .2 2J3 Employment Cost Index-wages and salaries: 3.3 3.4 II 2.1 2.0 3.5 5.4 2.3 .5 1.7 .2 1.2 1.8 1.1 1.6 1.1 1.6 2.0 .4 1.5 .1 1.2 1.8 1.2 1.7 2.2 .3 1.6 1.5 2.0 1.9 2.1 2.0 2.6 2.1 2.2 2.8 2.6 2.8 2.6 3.6 4.2 3.1 .7 1.8 .5 2.2 2.1 3.1 2.6 Data round to zero. Limited to major collective bargaining units of 5,000 workers or more. The most recent data are preliminary. MONTHLY LABOR REVIEW 4. April 1988 • C u rren t L a b o r S ta tistics: E m ploym en t D a ta Employment status of the total population, by sex, monthly data seasonally adjusted (Numbers in thousands) 1988 1987 Annual average Employment status 1986 1987 Mar. Feb. Apr. June May Sept. Aug. July Dec. Nov. Oct. Jan. Feb. TOTAL Noninstitutional population 1, 2 ....... Labor force2 ..................................... Participation rate 3 .................. Total employed 2 .......................... Employment-population ratio 4 ...................................... Resident Armed Forces 1 ....... Civilian em p lo ye d ...................... Agriculture ............................... Nonagricultural in dustries..... Unem ployed.................................. Unemployment rate 5 ............ Not in labor force ........................... 185,052 122,128 185,225 122,349 185,370 122,472 185,571 122,924 114,786 184,904 121,706 65.8 114,615 114,951 115,259 115,494 115,878 185,705 123,084 66.3 116,145 62,995 62.1 1,736 113,050 3,143 109,907 7,256 5.9 62,696 62.0 1,743 112,872 3,184 109,688 7,091 5.8 63,198 62.1 1,741 113,210 3,249 109,961 7,177 5.9 62,924 62.2 1,755 113,504 3,172 110,332 7,090 5.8 62,876 62.3 1,750 113,744 3,215 110,529 6,978 5.7 62,898 62.4 1,749 114,129 3,293 110,836 7,046 5.7 62,647 62.5 1,736 114,409 3,228 111,182 6,938 5.6 62,621 88,442 67,623 76.5 63,543 88,534 67,671 76.4 63,711 88,598 67,937 76.7 63,916 88,683 67,776 76.4 63,949 88,756 67,947 76.6 64,048 88,849 68,019 76.6 64,174 88,924 68,030 76.5 64,245 89,033 68,243 76.6 64,396 89,099 68,343 76.7 64,636 6.2 71.9 1,566 61,977 4,259 6.3 71.8 1,559 61,984 4,080 6.0 72.0 1,561 62,150 3,960 5.9 72.1 1,575 62,341 4,021 5.9 72.1 1,581 62,368 3,827 5.6 72.2 1,580 62,468 3,899 5.7 72.2 1,593 62,581 3,845 5.7 72.2 1,589 62,656 3,785 5.6 72.3 1,588 62,808 3,847 5.6 72.5 1,577 63,059 3,707 5.4 95,729 53,392 55.8 49,928 95,808 53,494 55.8 50,151 95,898 53,831 56.1 50,517 95,979 53,703 56.0 50,475 96,071 53,939 56.1 50,648 96,140 54,105 56.3 50,870 96,221 53,930 56.0 50,666 96,295 54,181 56.3 50,903 96,376 54,330 56.4 51,085 96,446 54,442 56.4 51,249 96,538 54,681 56.6 51,482 96,606 54,740 56.7 51,509 52.2 161 49,767 3,464 6.5 52.3 160 49,991 3,343 52.7 160 50,357 3,314 52.6 159 50,316 3,228 52.7 159 50,489 3,291 52.9 161 50,709 3,235 52.7 162 50,504 3,264 52.9 161 50,742 3,278 53.0 162 50,923 3,245 53.1 161 51,088 3,193 5.9 53.3 161 51,321 3,200 5.9 53.3 159 51,350 3,231 5.9 114,060 184,421 121,326 65.8 114,018 184,605 121,610 65.9 114,359 61.7 1,735 111,806 3,250 108,556 7,557 61.9 1,726 112,334 3,269 109,065 7,573 61.8 1,718 112,300 3,192 109,108 7,308 61.9 1,720 112,639 3,212 109,427 7,251 62,981 62,626 63,095 88,186 67,590 76.6 63,263 88,271 67,604 76.6 63,390 88,361 67,802 76.7 63,543 6.1 71.8 1,584 61,697 4,374 6.5 71.7 1,575 61,688 4,327 6.4 71.8 1,575 61,815 4,214 94,944 52,568 55.4 48,861 96,013 53,818 56.1 50,494 95,639 53,315 55.7 49,803 51.5 155 48,706 3,707 7.1 52.6 160 50,334 3,324 52.1 156 49,647 3,512 182,293 119,540 65.6 111,303 184,490 121,602 65.9 114,177 183,738 120,970 65.8 113,084 183,915 120,982 65.8 113,191 184,079 121,098 65.8 113,541 184,259 121,633 61.1 1,706 109,597 3,163 106,434 8,237 6.9 62,752 61.9 1,737 112,440 3,208 109,232 7,425 62,888 61.5 1,740 111,344 3,225 108,119 7,886 6.5 62,768 61.5 1,736 111,455 3,237 108,218 7,791 6.4 62,933 87,349 66,973 76.7 62,443 88,476 67,784 76.6 63,684 88,099 67,655 76.8 63,281 71.5 1,551 60,892 4,530 72.0 1,577 62,107 4,101 6.1 6.2 66.0 6.2 6.0 6.0 184,738 122,042 66.1 66.0 66.1 66.1 66.2 M e n , 16 y e a rs a n d o v e r Noninstitutional population ', 2 ....... Labor force2 ..................................... Participation rate 3 .................. Total employed 2 .......................... Employment-population ratio 4 ...................................... Resident Armed Forces 1 ....... Civilian employed ...................... Unem ployed.................................. Unemployment rate 5 ............ 6.8 W o m e n , 16 y e a rs a n d o v e r Noninstitutional population 1, 2 ....... Labor force2 ..................................... Participation rate 3 .................. Total employed2 ........................... Employment-population ratio 4 ...................................... Resident Armed Forces 1 ....... Civilian em p lo ye d ...................... Unem ployed.................................. Unemployment rate 5 ............ 6.2 6.6 6.2 The population and Armed Forces figures are not adjusted for seasonal variation. Includes members of the Armed Forces stationed in the United States. Labor force as a percent of the noninstitutional population. 80 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 6.2 6.0 4 5 6.1 6.0 6.1 6.1 6.0 Total employed as a percent of the noninstitutional population. Unemployment as a percent of the labor force (including the resident Armed Forces). 5. Employment status of the civilian population, by sex, age, race and Hispanic origin, monthly data seasonally adjusted (Numbers in thousands) Annual average 1987 Employment status 1986 1987 Feb. Mar. Apr. May June July Aug. Sept. 180,587 117,834 65.3 109,597 182,753 119,865 65.6 112,440 181,998 119,230 65.5 111,344 182,179 119,246 65.5 119,363 65.5 119,907 65.7 112,334 182,703 119,608 65.5 112,300 182,885 119,890 65.6 112,639 183,002 120,306 65.7 113,050 183,161 119.96C 65.E 112,872 60.7 8,237 7.0 62,752 61.5 7,425 61.2 7,886 61.5 7,573 6.3 62,626 61.6 7,251 61.8 7,256 62,768 61.3 7,557 6.3 62,981 61.5 7,308 62,888 61.2 7,791 6.5 62,933 63,095 62,995 62,696 61.6 7,091 5.9 63,198 78,523 61,320 78.1 57,569 79,565 62,095 78.0 58,726 79,216 61,930 78.2 58,324 79,303 61,933 78.1 58,380 79,387 61,970 78.1 58,516 79,474 62,129 78.2 58,673 79,536 62,054 78.0 58,632 79,625 62,106 78.0 58,783 79,668 62,083 77.9 58,825 73.3 2,292 55,277 3,751 73.8 2,329 56,397 3,369 5.4 73.6 2,317 56,007 3,606 5.8 73.6 2,361 56,019 3,553 5.7 73.7 2,378 56,138 3,454 5.6 73.8 2,383 56,290 3,456 5.6 73.7 2,316 56,316 3,422 5.5 73.8 2,333 56,450 3,323 5.4 87,567 48,589 55.5 45,556 88,583 49,783 56.2 47,074 88,237 49,343 55.9 46,485 88,321 49,414 55.9 46,582 88,395 49,494 56.0 46,761 88,464 49,728 56.2 47,028 88,546 49,722 56.2 47,088 52.0 614 44,943 3,032 53.1 622 46,453 2,709 5.4 52.7 634 45,851 2,858 5.8 52.7 602 45,980 2,832 5.7 52.9 603 46,158 2,733 5.5 53.2 629 46,399 2,700 5.4 14,496 7,926 54.7 6,472 14,606 7,988 54.7 6,640 14,546 7,957 54.7 6,535 14,555 7,899 54.3 6,493 14,562 7,899 54.2 6,529 44.6 258 6,215 1,454 18.3 45.5 258 6,382 1,347 16.9 44.9 274 6,261 1,422 17.9 44.6 274 6,219 1,406 17.8 155,432 101,801 65.5 95,660 156,958 103,290 65.8 97,789 156,431 102,825 65.7 97,001 61.5 6,140 62.3 5,501 5.3 19,989 12,654 63.3 10,814 54.1 1,840 14.5 Oct. Nov. Dec. Jan. Feb. 183,311 120,387 ■ 65.7 113,21 C 183,470 120,594 65.7 113,504 183,620 120,722 65.7 113,744 183,822 121,175 65.9 114,129 183,969 121,348 61.8 7,177 62,924 61.9 7,090 5.9 62,876 61.9 6,978 5.8 62,898 62.1 7,046 58 62,647 57 62,621 79,740 62,085 77.9 58,967 79,807 62,211 78.0 59,037 79,885 62,299 78.0 59,164 80,002 62,248 77.8 59,185 80,120 62,440 77.9 59,287 80,203 62,696 78.2 59,625 73.8 2,289 56,536 3,258 5.2 73.9 2,345 56,622 3,118 5.0 74.0 2,343 56,694 3,174 5.1 74.1 2,297 56,867 3,135 5.0 74.0 2,298 56,887 3,063 4.9 74.0 2,323 56,964 3 154 5.1 74.3 2,280 57,344 3 071 4.9 88,632 49,886 56.3 47,206 88,685 49,969 56.3 47,308 88,785 49,922 56.2 47,251 88,843 50,095 56.4 47,480 88,923 50,254 56.5 47,634 89,010 50,361 56.6 47,750 89,110 50,558 56.7 47,977 89,178 50,640 56.8 48,005 53.2 619 46,469 2,634 5.3 53.3 620 46,586 2,680 5.4 53.3 609 46,699 2,661 5.3 53.2 600 46,651 2,671 5.4 53.4 636 46,844 2,615 5.2 53.6 636 46.998 2,620 5.2 53.6 643 47,107 2,611 5.2 53.8 646 47,331 2,581 5.1 53.8 654 47,351 2,635 5.2 14,595 8,050 55.2 6,633 14,621 7,832 53.6 6,580 14,628 7,898 54.0 6,650 14,649 8,254 56.3 6,917 14,637 7,956 54.4 6,654 14,661 8,081 55.1 6,693 14,663 8,041 54.8 6,706 14,609 8,113 55.5 6,809 14,592 8,177 56.0 6,865 14,588 44.8 269 6,260 1,370 17.3 45.4 257 6,376 1,417 17.6 45.0 257 6,323 1,252 16.0 45.5 259 6,391 1,248 15.8 47.2 245 6,672 1,337 16.2 45.5 239 6,415 1,302 16.4 45.7 270 6,423 1,388 17.2 45.7 239 6,467 1,335 16.6 46.6 274 6,535 1,304 16.1 47.0 323 6,542 1,312 16.0 46.5 293 6,486 1,232 15.4 156,561 102,836 65.7 97,074 156,676 102,972 65.7 97,338 156,811 103,416 65.9 97,829 156,930 103,150 65.7 97,698 157,058 103,248 65.7 97,917 157,134 103,516 65.9 98,181 157,242 103,357 65.7 98,069 157,342 103,669 65.9 98,317 157,449 103,731 65.9 98,492 157,552 103,907 157,676 104,252 98,779 99,044 157,773 104,530 66.3 99,474 62.0 5,824 5.7 62.0 5,762 5.6 62.1 5,634 5.5 62.4 5,587 5.4 62.3 5,452 5.3 62.3 5,331 5.2 62.5 5,335 5.2 62.4 5,288 5.1 62.5 5,352 5.2 62.6 5,239 5.1 62.7 5,128 4.9 62.8 5,208 5.0 63.0 5,056 4.8 20,352 12,993 63.8 11,309 20,218 12,894 63.8 11,086 20,249 12,853 63.5 11,072 20,279 12,778 63.0 11,114 20,312 12,889 63.5 11,129 20,341 12,892 63.4 11,238 20,373 13,039 64.0 11,381 20,396 13,150 64.5 11,513 20,426 13,028 63.8 11,421 20,453 13,152 64.3 11,556 20,482 13,193 64.4 11,589 20,508 13,215 64.4 11,605 20,539 13,222 64.4 11,608 20,569 13,168 64.0 11,504 55.6 1,684 13.0 54.8 1,808 14.0 54.7 1,781 13.9 54.8 1,664 13.0 54.8 1,760 13.7 55.2 1,654 55.9 1,658 12.7 56.4 1,637 12.4 55.9 1,607 12.3 56.5 1,596 56.6 1,604 56.6 1,610 56.5 1,614 55.9 1,663 TOTAL Civilian noninstitutional population1...................... Civilian labor fo rc e ......................... Participation rate .................. Employed ....................... Employment-population ratio2 ............................ Unem ployed...................... Unemployment r a te .............. Not in labor force .......................... 6.2 6.6 6.1 6.0 6.0 6.0 66.0 114,409 62.2 6938 M en , 2 0 y e a rs a n d o v e r Civilian noninstitutional population1 ............................ Civilian labor fo rc e ......................... Participation rate .................. Employed ...................................... Employment-population ratio2 ......................... A g riculture............................ Nonagricultural industries........ Unem ployed........................ Unemployment r a te ............... 6.1 W o m e n , 20 y e a rs o n d o v e r Civilian noninstitutional population1 ............................ Civilian labor fo rc e .......................... Participation rate .................... E m ployed............................... Employment-population ratio2 ................................. A g riculture............................... Nonagricultural industries........ Unem ployed........................ Unemployment ra te ............... B o th s e x e s , 16 to 6.2 19 y e a rs Civilian noninstitutional population1 .............................. Civilian labor fo rc e .......................... Participation rate .................... E m ployed............................ Employment-population ratio2 .............................. A g riculture........................... Nonagricultural industries........ Unemployment ra te ............... 8,011 54.9 6,779 W h ite Civilian noninstitutional population1 ................................ Civilian labor fo rc e ....................... Participation rate ................... E m ployed........................ Employment-population ratio2 ................................... Unem ployed........................ Unemployment r a te ............... 6.0 66.0 66.1 B la c k Civilian noninstitutional population1 ................................... Civilian labor fo rc e ...................... Participation rate .................... Employed ............................ Employment-population ratio2 ....................................... Unem ployed................................. Unemployment r a te ............... 12.8 12.1 12.2 12.2 12.2 12.6 See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 81 MONTHLY LABOR REVIEW April 1988 • C u rren t L a b o r S ta tistics: E m ploym en t D a ta 5. Continued— Employment status of the civilian population, by sex, age, race and Hispanic origin, monthly data seasonally adjusted (Numbers in thousands) 1988 1987 Annual average Employment status Oct. Nov. Dec. Jan. Feb. 12,965 8,581 13,003 8,654 7,877 7,935 13,082 8,772 67.1 8,056 13,115 8,879 67.7 8,238 13,153 9,017 7,856 13,043 8,763 67.2 7,978 60.8 693 60.8 704 61.0 719 8.3 61.2 785 9.0 61.6 714 62.8 642 7.2 62.9 749 8.3 1986 1987 Feb. Mar. Apr. May June July Aug. 12,344 8,076 65.4 7,219 12,867 8,541 66.4 7,790 12,692 8,423 66.4 7,614 12,732 8,395 65.9 7,632 12,770 8,468 66.3 7,686 12,809 8,549 66.7 7,797 12,848 8,468 65.9 7,738 12,887 8,447 65.5 7,762 12,925 8,549 58.5 857 60.5 751 60.0 809 9.6 59.9 763 9.1 60.2 782 9.2 60.9 752 60.2 730 60.2 685 Sept. H is p a n ic o r ig in Civilian noninstitutional population1 ....................................... Civilian labor fo rc e .......................... Participation rate ................... E m ployed...................................... Employment-population ratio2 ....................................... Unem ployed.................................. Unemployment r a te ............... 10.6 8.8 1 2 The population figures are not seasonally adjusted. Civilian employment as a percent of the civilian noninstitutional population. NOTE: Detail for the above race and Hispanic-origin groups will not sum to totals 6. 8.6 8.8 8.1 66.1 8.1 66.2 8.2 66.6 8.1 68.6 8,268 because data for the “ other races” groups are not presented and Hispanics'are included in both the white and black population groups. Selected employment indicators, monthly data seasonally adjusted (In thousands) — 1988 1987 Annual average Selected categories 1986 1987 Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. C H A R A C T E R IS T IC Civilian employed, 16 years and o v e r................................................. M e n .............................................. Women ........................................ Married men, spouse present .. Married women, spouse p re s e n t....................................... Women who maintain families . M A JO R 109,597 60,892 48,706 39,658 112.440 62,107 50,334 40,265 111,344 61,697 49,647 39,958 111,455 61,688 49,767 40,054 111,806 61,815 49,991 40,021 112,334 61,977 50,357 40,075 112,300 61,984 50,316 40,120 112,639 62,150 50,489 40,262 113,050 62,341 50,709 40,308 112,872 62,368 50,504 40,404 113,210 62,468 50,742 40,556 113,504 62,581 50,923 40,645 113,744 62,656 51,088 40,711 114,129 62,808 51,321 40,404 114,409 63,059 51,350 40,475 27,144 5,837 28,107 6,060 27,837 5,925 27,966 5,946 28,130 5,971 28,314 5,963 28,282 6,011 28,283 6,033 28,189 6,107 28,069 6,151 28,099 6,178 28,175 6,237 28,249 6,227 28,441 6,168 28,707 6,157 1,547 1,447 169 1,632 1,423 153 1,640 1,440 132 1,689 1,416 152 1,599 1,488 170 1,672 1,429 165 1,622 1,403 162 1,625 1,424 153 1,591 1,393 155 1,624 1,415 139 1,705 1,430 140 1,595 1,407 155 1,599 1,450 156 98,299 16,342 81,957 1,235 80,722 7,881 255 100,771 16,800 83,970 1,208 82,762 99,863 16,594 83,269 1,227 82,042 8,082 270 100,106 16,518 83,588 1,234 82,354 8,139 268 100,634 16,708 83,926 1,240 82,686 8,157 276 100,510 16,920 83,590 1,163 82,427 8,293 274 100,825 16,876 83,949 101,522 17,033 84,489 83,254 8,204 297 83,267 8,274 242 101,943 17,118 84,825 1,286 83,539 101,997 17,064 84,933 82,737 8,216 266 101,241 16,794 84,447 1,175 83,272 8,214 248 101,282 16,928 84,354 260 99,772 16,553 83,219 1,213 82,006 8,166 254 5,588 2,456 2,800 13,935 5,401 2,385 2,672 14,395 5,766 2,501 2,773 14,110 5,459 2,438 2,707 14,201 5,394 2,345 2,725 13,940 5,333 2,292 2,677 14,498 5,254 2,345 2,623 14,336 5,428 2,429 2,683 14,437 5,283 2,468 2,526 14,573 5,261 2,213 2,683 14,415 5,345 2,305 2,719 13,502 5,122 5,458 2,315 2,682 13,635 5,180 2,234 2,612 13,717 5,104 2,163 2,848 13,544 5,058 2,126 2,603 13,995 4,979 2,176 2,530 14,334 5,154 2,261 2,599 13,953 5,016 2,265 2,463 14,099 4,986 2,034 2,603 13,987 IN D U S T R Y A N D C L A S S OF W ORKER Agriculture: Wage and salary w o rk e rs ........ Self-employed w o rk e rs ............. Unpaid family w o rk e rs .............. Nonagricultural industries: Wage and salary workers ........ Government ............................. Private in dustries.................... Private households.............. Other ...................................... Self-employed w o rk e rs ............. Unpaid family w o rk e rs .............. 8,201 1,212 1,100 1,666 1,454 138 1,677 1,414 114 235 83,733 8,280 248 102,507 17,197 85,310 1,147 84,163 8,150 237 102,683 16,948 85,735 1,170 84,565 8,312 228 5,353 2,377 2,655 14,488 5,534 2,408 2,696 14,523 5,262 2,284 2,638 14,711 5,367 2,396 2,640 14,571 5,566 2,478 2,598 14,572 5,067 2,196 2,557 14,011 5,241 2,209 2,597 14,064 5,004 2,552 14,222 5,145 2,260 2,566 14,096 5,254 2,327 2,457 14,123 1,222 8,222 1,200 PERSONS AT W ORK P A R T T IM E 1 All industries: Part time for economic reasons . Slack work .................................. Could only find part-time work Voluntary part time ....................... Nonagricultural industries: Part time for economic reasons . Slack work .................................. Could only find part-time work Voluntary part t im e ....................... 1 2,201 2,587 13,928 Excludes persons “ with a job but not at work” during the survey period for such reasons as vacation, illness, or industrial disputes. 82 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2,111 1 7. Selected unemployment indicators, monthly data seasonally adjusted (Unemployment rates) 19!38 1987 Annual average Selected categories 1986 1987 Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. 6.0 C H A R A C T E R IS T IC Both se>es, 16 to 19 y e a rs ................................... Men, 20 years and over ........................................ 6.2 6.6 6.3 17.3 5.6 5.5 6.3 17.6 5.6 5.4 6.0 6.0 17.9 5.8 5.8 6.5 17.8 5.7 5.7 6.1 16.9 5.4 5.4 16.0 5.5 5.3 15.8 5.4 5.4 16.2 5.2 5.3 5.9 16.4 5.0 5.4 17.2 5.1 5.2 5.9 16.6 5.0 5.2 5.8 16.1 4.9 5.2 5.8 16.0 5.1 5.1 5.7 15.4 4.9 5.2 5.3 14.4 15.5 13.4 4.8 4.6 5.7 15.1 16.0 14.1 5.1 4.8 5.6 15.3 16.8 13.7 5.0 4.7 5.5 14.8 16.3 13.3 4.9 4.6 5.4 15.2 17.0 13.3 4.8 4.5 5.3 13.9 14.8 13.0 4.9 4.4 5.2 13.3 13.5 13.1 4.7 4.5 5.2 14.1 15.2 12.9 4.6 4.4 5.1 14.3 15.1 13.4 4.4 4.5 5.2 14.5 15.1 13.8 4.6 4.3 5.1 14.1 14.8 13.3 4.4 4.4 4.9 13.6 14.9 12.3 4.3 4.4 5.0 14.0 14.4 13.6 4.4 4.2 4.8 12.4 14.5 39.3 39.3 39.2 12.9 12.4 13.0 34.7 34.4 34.9 14.0 38.0 37.9 38.0 11.9 13.9 37.0 36.1 38.0 13.0 37.1 37.8 36.3 12.8 12.7 32.7 32.4 33.1 12.6 12.7 11.0 11.6 11.4 12.4 30.6 33.7 27.1 10.7 11.3 12.3 30.8 31.5 30.0 11.6 13.7 37.5 38.3 36.6 12.3 10.6 8.8 9.6 9.1 4.4 5.2 9.8 3.9 4.3 9.2 5.8 8.4 1.7 7.1 4.1 4.8 9.6 4.1 4.5 9.7 6.2 8.8 1.8 6.1 7.0 18.3 6.1 6.2 6.0 15.6 16.3 14.9 5.3 5.4 Women who maintain fa m ilie s.............................. 6.6 9.1 1.9 7.9 11.1 11.6 7.5 9.1 1.7 7.4 12.2 12.7 4.1 4.5 12.1 12.2 12.2 12.2 12.6 33.9 32.2 35.8 33.4 33.5 33.4 35.0 35.1 34.9 10.1 33.8 32.5 35.2 9.8 11.0 10.2 10.8 10.1 11.7 10.9 10.1 11.1 38.3 42.0 34.7 11.3 10.4 11.6 33.4 31.4 35.4 11.4 11.3 9.2 8.8 8.6 8.1 8.1 8.2 8.3 9.0 8.1 7.2 8.3 4.1 4.4 9.4 5.9 4.0 4.2 9.5 5.9 8.7 1.7 7.2 4.0 4.0 9.5 5.9 7.3 1.7 7.1 3.8 4.2 9.3 5.7 3.7 4.3 9.0 5.6 3.7 4.2 3.5 4.2 8.5 b.b 3.4 4.3 8.4 b.4 8.1 1.6 8.2 1.6 3.7 4.2 8.9 5.6 8.3 1.5 1.5 1.5 3.6 4.2 8.9 b.4 8.3 1.4 3.4 4.1 8.3 5.3 7.9 1.4 6.9 6.9 6.8 6.8 6.6 6.6 6.6 6.3 13.0 6.1 6.1 7.9 6.0 8.6 8.6 1.7 7.3 11.2 8.8 5.5 8.4 1.6 6.8 8.2 8.0 IN D U S T R Y Nonagrlcultural private wage and salary workers .... Manufacturing ......................................................... 7.0 13.5 13.1 7.1 6.9 7.4 5.1 7.6 5.5 3.6 12.5 6.2 10.0 11.6 6.0 5.8 6.3 4.5 6.9 4.9 3.5 10.5 6.6 6.3 6.5 9.5 12.4 6.7 11.2 12.0 12.1 6.3 6.3 6.7 6.9 4.1 7.2 5.2 3.6 6.6 6.2 6.2 9.5 11.7 5.7 5.4 7.0 4.5 7.3 4.9 3.5 11.0 10.8 6.4 4.7 7.1 4.8 3.5 9.5 6.5 4.4 7.0 4.9 3.4 9.4 4.8 7.1 4.9 3.4 9.3 13.0 11.7 6.8 6.1 10.8 6.0 6.0 5.9 4.4 6.8 5.1 3.4 10.9 11.3 5.6 5.5 5.8 4.4 7.0 4.7 3.7 5.9 7.4 11.9 5.6 5.4 5.9 4.1 6.4 4.8 3.4 10.6 8.6 5.9 8.3 5.8 7.0 5.7 7.8 11.2 8.0 10.6 5.8 7.7 10.6 12.2 11.0 5.7 5.2 6.5 4.4 6.5 4.7 3.3 5.3 4.8 5.9 4.5 5.1 4.8 5.6 4.6 5.6 5.5 5.8 3.6 5.6 5.9 5.3 3.6 6.4 4.5 10.6 11.1 5.7 6.8 6.2 6.1 4.8 3.4 4.8 3.2 10.9 4.9 3.0 11.5 2.8 10.2 1 Aggregate hours lost by the unemployed and persons on part time for economic reasons as a percent of potentially available labor force hours. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 83 i MONTHLY LABOR REVIEW 8. April 1988 • C u rren t L a b o r S ta tistics: E m ploym en t D a ta Unemployment rates by sex and age, monthly data seasonally adjusted (Civilian workers) Annual average Sex and age 1987 1986 Total, 16 years and over ........................................................................ 16 to 24 y e a rs ....................................................................................... 16 to 19 y e a rs .................................................................................... 16 to 17 years ................................................................................. 18 to 19 years ................................................................................. 20 to 24 y e a r s .................................................................................... 25 years and o v e r................................................................................. 25 to 54 years ................................................................................. 55 years and o v e r ........................................................................... 7.0 13.3 18.3 Men, 16 years and o v e r .................................................................... 16 to 24 years ................................................................................. 16 to 19 y e a rs ............................................................................... 16 to 17 y e a rs ............................................................................ 18 to 19 y e a rs ............................................................................ 20 to 24 y e a rs............................................................................... 25 years and o v e r ........................................................................... 25 to 54 y e a rs ............................................................................ 55 years and o v e r...................................................................... 16.9 19.1 15.2 9.7 4.8 5.0 3.3 6.9 13.7 19.0 17.8 20.8 20.2 17.7 16.0 9.9 4.8 5.0 3.5 6.2 12.6 5.4 5.6 4.1 Women, 16 years and o v e r ............................................................. 16 to 24 y e a rs ................................................................................ 16 to 19 years ............................................................................. 16 to 17 years .......................................................................... 18 to 19 years .......................................................................... 20 to 24 years ............................................................................. 25 years and o v e r.......................................................................... 25 to 54 years .......................................................................... 55 years and o v e r .................................................................... 9. 17.0 10.7 5.4 5.7 3.9 11.0 Mar. Feb. 6.2 12.2 20.2 Apr. 6.5 6.3 13.0 17.9 19.8 16.4 10.4 5.1 5.5 3.1 12.8 12.6 17.8 19.9 16.2 17.3 18.9 15.9 10.2 10.1 5.0 5.3 3.4 4.8 5.1 3.4 6.4 13.1 18.7 6.6 6.6 13.5 18.5 20.5 17.1 10.9 5.1 5.4 3.4 13.2 19.0 20.3 17.9 6.5 12.4 16.6 19.6 14.3 15.9 16.6 14.7 10.1 10.0 5.0 5.3 3.0 4.8 5.1 2.9 7.1 6.2 6.6 11.7 15.9 18.0 14.3 9.4 4.8 5.1 3.0 12.4 17.1 19.0 15.7 9.9 5.1 5.5 2.7 21.0 17.1 10.3 4.9 5.1 3.7 10.2 5.1 5.3 3.6 June May 6.6 12.8 17.6 19.6 16.3 10.3 5.5 5.9 3.6 1988 1987 6.3 12.0 6.3 12.5 17.6 21.0 15.2 9.8 4.8 5.1 3.6 6.4 13.2 19.6 22.7 17.2 9.9 4.9 5.1 3.9 6.2 11.8 15.6 19.1 13.1 9.7 4.7 5.0 3.0 July Oct. Sept. Aug. 5.9 6.1 12.1 6.0 11.8 6.0 11.8 11.8 16.0 18.8 14.5 15.8 17.5 13.9 9.7 4.7 5.0 3.1 16.2 18.3 14.7 9.4 4.7 4.9 3.2 16.4 18.3 15.2 9.4 4.6 4.8 3.3 10.0 4.7 4.9 3.2 Nov. 6.0 11.8 17.2 20.4 14.7 8.8 4.6 4.8 3.1 Dec. 5.8 5.7 11.6 11.2 11.6 11.1 16.6 19.2 14.8 8.9 4.5 4.7 3.4 16.1 17.8 14.7 8.5 4.5 4.8 3.2 16.0 18.7 14.5 9.1 4.5 4.7 3.5 15.4 17.4 13.9 8.7 4.5 4.7 3.3 5.8 5.7 11.7 17.2 19.3 15.3 8.7 4.4 4.6 3.2 5.8 16.4 19.4 14.9 9.9 4.4 4.5 4.0 5.6 11.3 15.6 16.9 14.7 9.0 4.3 4.5 3.4 6.2 6.0 6.1 5.8 11.9 15.9 17.1 13.7 9.9 4.7 4.9 3.4 12.5 17.8 20.5 15.9 12.1 12.1 12.0 17.3 19.7 15.9 9.3 4.5 4.7 3.2 17.4 20.9 14.8 9.2 4.5 4.8 3.1 17.2 20.4 14.8 9.2 4.4 4.6 3.5 6.0 11.0 6.1 6.1 11.5 15.4 16.9 14.4 9.4 4.7 4.9 3.5 11.5 16.9 19.9 14.6 8.5 4.7 4.9 3.1 6.0 11.2 6.0 6.1 11.7 15.5 18.4 13.6 9.6 4.5 4.9 11.7 15.7 18.0 14.1 9.5 4.7 5.0 2.8 2.6 ^,6 14.4 16.0 13.4 9.0 4.7 5.0 2.9 Feb. 5.8 12.4 16.4 19.1 15.4 10.4 4.8 5.0 3.4 4.7 4.9 3.4 Jan. 5.9 5.9 16.0 17.9 14.7 8.6 4.7 4.9 3.2 5.9 10.7 14.8 16.2 14.1 8.4 4.7 4.9 3.3 12.2 5.9 10.9 15.6 17.9 14.1 5.9 10.8 15.1 18.0 13.1 8.4 4.7 4.9 3.1 8.2 4.6 4.9 2.8 Unemployed persons by reason for unemployment, monthly data seasonally adjusted (Numbers in thousands) 1988 1987 Annual average Reason for unemployment 1986 Job losers ...................................................................... On la y o ff...................................................................... Other job lo s e rs .......................................................... Job leavers .................................................................... Reentrants ..................................................................... New entrants ................................................................. 1987 Feb. Mar. 4,033 1,090 2,943 1,015 2,160 1,029 3,566 943 2,623 965 1,974 920 3,835 2,834 1,033 2,038 1,007 48.9 13.2 35.7 12.3 26.2 12.5 48.0 12.7 35.3 13.0 26.6 12.4 48.5 12.7 35.8 13.1 25.8 12.7 3.4 .9 3.0 1,001 Apr. May June 3,791 1,003 2,788 996 2,078 952 3,705 963 2,742 955 1,965 918 3,612 924 48.5 49.1 2,688 931 1,995 999 July Sept. Aug. Nov. Oct. Dec. Jan. Feb. 3,389 874 2,515 992 1,969 855 3,313 820 2,493 981 1,908 882 3,388 944 2,444 960 1,845 914 3,307 878 2,429 926 1,974 855 3,200 856 2,344 946 1,945 909 3,209 2,320 1,082 1,917 885 3,207 884 2,323 961 1,951 864 47.0 46.8 47.7 13.3 34.4 13.5 26.0 12.9 46.8 12.4 34.4 13.1 28.0 45.7 12.1 33.5 13.5 27.8 13.0 45.2 12.5 32.7 15.3 27.0 12.5 45.9 12.7 33.3 13.8 27.9 12.4 2.7 2.7 2.6 .8 1.6 .8 .9 1.6 2.6 .8 1.6 .7 .7 3,554 919 2,635 959 1,980 854 3,529 916 2,613 989 1,930 844 48.4 12.5 35.9 13.1 26.9 12.6 12.1 11.6 35.8 13.6 26.5 11.6 11.6 34.9 13.8 27.3 11.9 35.2 13.8 26.9 12.5 888 PERCENT OF UNEM PLOYED Job lo se rs.................................................................... On la y o ff................................................................... Other job lo s e rs ....................................................... Job le avers.................................................................. R eentrants................................................................... New entrants .............................................................. 48.4 12.8 12.8 35.7 12.7 26.6 36.4 12.7 26.1 12.2 12.2 47.9 12.3 35.7 12.4 26.5 13.3 3.2 .9 1.7 3.2 3.1 3.0 3.0 2.9 .8 .8 .8 2.8 .8 1.6 1.5 .8 1.6 .8 1.7 .7 2.8 .8 1.6 2.8 .8 1.7 .8 1.6 .8 .6 1.6 .8 .7 .7 .7 .8 .7 12.2 PERCENT OF C IV IL IA N LABOR FORCE Job lo s e rs ...................................................................... Job leavers .................................................................... Reentrants ..................................................................... New entrants ................................................................. 10. 1.8 .9 .8 1.6 .8 1.7 .8 Duration of unemployment, monthly data seasonally adjusted (Numbers in thousands) 1988 1987 Annual average Weeks of unemployment 1986 1987 Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. 3,308 2,165 2,067 974 1,093 3,138 2,151 2,029 973 1,056 3,186 2,144 1,920 945 975 3,203 2,142 1,896 834 1,062 3,220 1,949 1,904 317 987 3,223 2,093 1,801 844 957 3,218 2,029 1,834 899 935 3,229 1,968 1,791 892 899 3,089 2,263 1,733 839 894 3,084 2,145 1,740 841 899 14.8 14.7 14.2 14.2 6.6 14.2 5.8 14.0 6.6 14.3 6.4 14.1 6.6 6.2 6.1 6.0 14.4 6.4 14.4 6.4 Less than 5 weeks ............................................... 5 to 14 weeks ........................................................ 15 weeks and o v e r ............................................... 15 to 26 weeks .................................................. 27 weeks and o v e r ....................................... . 3,448 2,557 2,232 1,045 1,187 3,246 2,196 1,983 943 1,040 3,343 2,444 2,129 1,004 1,125 3,352 2,411 2,055 944 1,111 3,195 2,256 2,060 984 1,076 Mean duration in w e e k s ....................................... Median duration in w e e k s .................................... 15.0 6.9 14.5 6.5 14.8 6.7 14.9 6.7 14.8 6.9 Digitized for 84 FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 11. Unemployment rates of civilian workers by State, data not seasonally adjusted S tate Jan. 1987 Jan. 1988 A la b a m a ................................................................... A la ska ....................................................................... A rizo na ...................................................................... A rk a n s a s .................................................................. C a lifo rn ia .................................................................. 10.1 11.7 7.9 9.6 6.9 7.9 10.8 5.6 9.2 5.6 S tate Jan. 1987 Jan. 1988 10.1 5.7 6 6 2.9 9.5 5.2 7.2 3.3 4.6 9 9 6.2 5.2 6 9 4.5 8 8 5.0 5.1 70 8.7 8 5 84 6 5 4.5 7.1 7 3 7 1 6 2 4.0 6.1 5 5 8 2 9.8 74 6.1 4 7 6 9 8.4 6.7 5.2 5 4 9.3 13.0 80 4.1 4 2 8.2 13.8 7 0 10.6 8.9 N e braska ................................................................ N ew H a m p s h ire .................................................... N ew Je rsey ........................................................... 9.3 C o lo ra do .................................................................. C o n n e cticu t ............................................................. D e la w a re .................................................................. D istrict o f C o lu m b ia .............................................. Florida ....................................................................... 4.0 3.7 8.0 5.8 7.8 3.7 4.4 6.1 5.0 G eo rg ia ..................................................................... H a w a ii........................................................................ Idaho ......................................................................... Illinois ........................................................................ Indiana ...................................................................... 5.9 4.4 10.9 8.2 7.5 6.4 3.9 9.5 7.4 6.5 I o w a ........................................................................... K ansas ...................................................................... K e n tu c k y .................................................................. L o u is ia n a .................................................................. M a in e ......................................................................... 7.1 6.4 10.8 14.9 6.8 7.0 5.6 M aryland .................................................................. M a s s a c h u s e tts ....................................................... M ic h ig a n .................................................................... M inn eso ta ................................................................ M is s is s ip p i................................................................ M is s o u ri..................................................................... 4.1 8.1 6.4 12.7 6.9 N ew Y o r k ................................................................ N orth C arolina ...................................................... O hio ......................................................................... S outh C a ro lin a ...................................................... 9.5 12.0 Te xas ....................................................................... U tah .......................... 5.5 V e r m o n t.................................................................. 5.4 5.2 3.8 10.7 6.1 10.6 6.7 W a sh ing ton .................. ......................................... W est V irg in ia ......................................................... NOTE: Some data in this table may differ from data published elsewhere because of the continual updating of the database. 12. Employment of workers on nonagricultural payrolls by State, data not seasonally adjusted (In thousands) State Jan. 1987 Dec. 1987 A labam a...................... A la ska ....................... A r iz o n a ...................... A rk a n s a s .................. C a lifo rn ia .................... 1,464.6 196.6 1,353.4 803.4 11,355.0 1,527.9 203.1 1,423.1 851.2 11,973.2 C o lo r a d o ................... C o n n e cticu t .............. D e la w a re .................... D istrict o f C olum bia F lo r id a ........................ 1,393.6 1,603.5 305.9 633.5 4,728.2 1,415.6 1,674.5 330.9 664.2 5,037.3 G e o r g ia ...................... H a w a ii......................... I d a h o .......................... I llin o is ......................... Indiana ....................... 2,696.3 447.7 318.2 4,803.2 2 ,211.6 2,807.8 470.6 340.0 4,963.8 2,360.1 I o w a ............................. K ansas ....................... K e n tu c k y .................... L o u is ia n a .................... M a in e ........................... 1,056.9 968.9 1,278.6 1,460.6 474.3 1,133.4 1,020.7 1,352.0 1,504.3 517.9 M a ry la n d .................... M a s s a c h u s e tts ........ M ic h ig a n ..................... M in n e s o ta ................. M is s is s ip p i................. M is s o u ri...................... M o n ta n a ..................... 1,951.9 2,959.1 3,654.0 1,884.5 842.3 2,125.9 265.9 2,050.8 3,101.9 3,776.3 1,997.9 884.7 2,215.1 275.3 Jan. 1988p p = preliminary NOTE: Some data in this table may differ from data published elsewhere https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis State 1,505.5 N e bra ska......................................................... 196.0 Nevada ............................................................. 1,404.1 New H am pshire.............................................. 833.3 11,806.5 New J e rs e y ...................................................... New Mexico .................................................... 1,395.5 New Y o rk .......................................................... 1,640.3 North Carolina ......................................... 319.9 North Dakota .................................................. 654.1 5,022.8 Ohio .................................................................. O klaho m a......................................................... 2,766.3 O re g o n .............................................................. 463.6I Pennsylvania................................................... 331.3 Rhode Isla n d ................................................... 4,900.5 2,315.8 South C a ro lin a ................................................ South D a k o ta .................................................. 1,109.6 Tennessee ...................................................... 996.1 Texas ................................................................ 1,333.1 Utah .................................................................. 1,485.2 503.6 V e rm o n t............................................................ V irg in ia .............................................................. 2,017.2 Washington ...................................................... 3,031.4 West V irg inia.................................................... 3,682.7 W iscon sin.......................................... 1,952.0 875.5 W yom ing........................................................... 2,165.5 Puerto R ic o ...................................................... 269.5 Virgin Islands .................................................. Jan. 1987 Dec. 1987 Jan. 1988p 642.4 472.4 494.8 670.2 514.4 529.0 657.1 507.3 521.0 3,485.2 516.5 7,839.3 2,779.4 243.6 3,653.2 536.4 8,219.5 2,930.5 254.4 3,572.2 526.2 8,025.8 2,884.1 248.7 4,447.6 1,097.7 1,050.2 4,760.4 440.3 4,676.9 1,108.3 1,116.5 5,016.5 458.3 4,567.6 1,078.7 1,094.5 4,901.5 446.7 1,345.1 246.3 1,937.5 6,440.6 625.3 1,422.1 256.3 2,056.7 6,580.8 652.9 1,396.4 249.6 2,025.4 6,517.7 636.0 237.9 2,588.4 1,766.8 584.7 2,003.8 252.3 2,744.7 1,880.4 607.3 2,121.4 250.1 2,701.1 1,845.3 591.8 2,073.8 176.3 736.2 38.8 177.2 777.5 40.2 173.0 763.8 39.6 because of the continual updating of the database. MONTHLY LABOR REVIEW 13. April 1988 • C u rren t L a b o r S ta tistics: E m ploym en t D a ta Employment of workers on nonagricultural payrolls by industry, monthly data seasonally adjusted (In thousands) 1988 1987 Annual average Industry 1986 TOTAL .......................................................... P R IV A T E S E C T O R G O O D S -P R O D U C IN G M in in g ................................ .............................. ................................................................. Oil and gas extraction ................. C o n s tr u c tio n ................................................ General building contractors....... M a n u f a c t u r i n g ............................................. Production workers ....................... D u r a b l e g o o d s .......................................... Production workers ....................... Lumber and wood p ro d u c ts ......... Furniture and fix tu re s ..................... Stone, clay, and glass products ... Primary metal industries ............... Blast furnaces and basic steel p roducts.......................................... Fabricated metal products............ 1987 Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan.p Feb.p 99,610 82,900 102,112 85,049 101,150 84,215 101,329 84,352 101,598 84,560 101,708 84,677 101,818 84,787 102,126 85,106 102,275 85,229 102,434 85,386 102,983 85,795 103,285 86,072 103,612 86,341 103,786 86,533 104,317 86,996 24,681 783 457 24,884 741 425 24,743 719 406 24,749 722 408 24,759 729 416 24,752 735 420 24,761 738 425 24,850 744 430 24,886 751 434 24,917 759 439 25,064 764 443 25,169 759 439 25,259 756 436 25,204 745 428 25,332 746 429 4,904 1,293 5,031 1,278 5,038 1,309 5,032 1,291 5,019 1,272 4,999 1,267 5,008 1,266 5,002 1,261 5,006 1,262 4,989 1,260 5,053 1,279 5,074 1,280 5,121 1,290 5,059 1,303 5,166 1,320 18,994 12,895 19,112 13,021 18,986 12,916 18,995 12,925 19,011 12,939 19,018 12,946 19,015 12,958 19,104 13,020 19,129 13,038 19,169 13,072 19,247 13,129 19,336 13,197 19,382 13,241 19,400 13,252 19,420 13,276 11,244 7,432 11,237 7,457 11,179 7,398 11,176 7,399 11,175 7,406 11,175 7,409 11,176 7,421 11,195 7,425 11,248 7,475 11,268 7,494 11,319 7,530 11,367 7,568 11,403 7,597 11,405 7,590 11,413 7,606 711 497 586 753 739 514 585 751 733 501 588 733 734 502 586 739 736 504 586 743 738 509 584 742 735 510 582 746 740 518 582 750 736 518 582 754 740 520 581 764 741 524 583 768 750 526 588 771 753 530 590 771 753 533 585 768 754 532 588 771 275 1,431 275 1,428 261 1,419 266 1,419 272 1,423 272 1,420 275 1,424 277 1,424 278 1,425 283 1,429 286 1,438 287 1,446 285 1,451 284 1,453 287 1,454 Machinery, except electrica l......... Electrical and electronic equipm ent....................................... Transportation equipm ent............. Motor vehicles and equipment .... Instruments and related products Miscellaneous manufacturing in d u strie s........................................ 2,060 2,039 2,018 2,015 2,022 2,025 2,028 2,033 2,044 2,053 2,064 2,074 2,085 2,096 2,097 2,123 2,015 865 707 2,101 2,106 2,099 2,092 2,087 2,080 2,022 2,022 2,011 2,011 2,010 859 695 854 694 847 694 843 693 842 693 2,095 2,028 848 695 2,096 2,018 837 695 2,111 2,015 842 696 2,088 1,995 814 695 2,118 2,016 835 701 2,128 2,018 832 701 2,130 2,006 822 703 2,128 2,005 822 703 362 369 364 366 364 366 368 370 371 372 374 377 376 378 381 N o n d u r a b l e g o o d s .................................. 7,750 5,463 7,875 5,564 7,807 5,518 7,819 5,526 7,836 5,533 7,843 5,537 7,839 5,537 7,909 5,595 7,881 5,563 7,901 5,578 7,928 5,599 7,969 5,629 7,979 5,644 7,995 5,662 8,007 5,670 Food and kindred pro d u c ts .......... Tobacco manufactures ................. Textile mill p ro d u c ts ....................... Apparel and other textile products.......................................... Paper and allied products ............ 1,617 59 705 1,636 57 730 1,630 58 722 1,635 57 725 1,642 56 724 1,633 57 727 1,634 57 729 1,644 57 736 1,632 56 732 1,631 55 735 1,635 55 736 1,645 56 738 1,645 56 739 1,662 56 737 1,663 55 738 1,106 674 1,113 678 1,101 1,103 678 1,104 677 1,107 677 1,108 676 1,130 678 1,110 677 1,117 681 1,123 678 1,128 680 1,121 679 681 1,115 681 1,114 682 Printing and publishing.................. Chemicals and allied products..... Petroleum and coal p roducts....... Rubber and misc. plastics p roducts.......................................... Leather and leather products ...... 1,457 1,023 169 1,501 1,027 165 1,483 1,018 164 1,485 1,017 164 1,493 1,018 164 1,497 1,022 164 1,498 1,014 164 1,504 1,026 164 1,508 1,031 164 1,509 1,031 166 1,514 1,035 167 1,522 1,041 167 1,525 1,047 167 1,531 1,048 167 1,537 1,051 168 790 151 818 151 805 147 807 148 809 149 809 150 810 149 815 155 819 152 824 152 833 152 840 152 845 153 845 153 846 153 74,930 77,228 76,407 76,580 76,839 76,956 77,057 77,276 77,389 77,517 77,919 78,116 78,353 78,582 78,985 5,459 3,218 5,473 3,233 5,486 3,245 5,497 3,257 Production w o rke rs......................... S E R V IC E -P R O D U C IN G ......................... 2,019 838 697 T r a n s p o r t a t io n a n d p u b lic u t i l i t i e s .............................................................. Transportation................................. Communication and public u tilitie s............................................. W h o le s a le tr a d e ....................................... Durable g o o d s ................................. Nondurable g o o d s .......................... R e t a i l t r a d e .................................................... General merchandise s to re s ........ Food s to re s ..................................... Automotive dealers and service s ta tio n s ........................................... Eating and drinking p la c e s ........... 5,244 3,041 5,378 3,150 5,315 3,097 5,333 3,112 5,348 3,124 5,344 3,120 5,350 3,128 5,363 3,133 5,377 3,147 5,416 3,183 5,436 3,198 2,203 2,228 2,218 2,221 2,224 2,224 2,222 2,230 2,230 2,233 2,238 2,241 2,240 2,241 2,240 5,735 3,383 2,351 5,797 3,419 2,379 5,757 3,391 2,366 5,766 3,397 2,369 5,772 3,397 2,375 5,775 3,401 2,374 5,781 3,405 2,376 5,797 3,418 2,379 5,807 3,422 2,385 5,815 3,431 2,384 5,831 3,444 2,387 5,851 3,456 2,395 5,871 3,473 2,398 5,887 3,482 2,405 5,903 3,494 2,409 17,845 2,363 2,873 18,264 2,406 2,959 18,140 2,373 2,940 18,136 2,380 2,944 18,197 2,385 2,953 18,205 2,390 2,956 18,226 2,387 2,960 18,274 2,407 2,959 18,256 2,411 2,962 18,314 2,415 2,958 18,408 2,459 2,969 18,443 2,454 2,982 18,458 2,453 2,996 18,628 2,501 3,021 18,739 2,545 3,037 1,943 5,879 1,987 5,994 1,979 5,956 1,979 5,964 1,978 5,962 1,978 5,976 1,983 5,982 1,985 5,985 1,985 5,992 1,988 6,018 2,000 2,003 6,047 2,013 6,064 2,021 6,032 6,083 2,037 6,098 6,297 3,152 1,945 6,501 3,243 2,016 1,242 6,526 3,256 1,248 6,558 3,272 2,032 1,254 6,576 3,276 2,037 1,263 6,586 3,280 2,037 1,269 6,608 3,291 2,043 1,274 6,624 3,293 2,050 1,281 6,629 3,292 2,054 1,283 6,650 3,296 2,068 1,286 6,657 3,301 2,069 1,287 6,668 1,200 6,589 3,278 2,044 1,267 3,301 2,082 1,285 6,681 3,307 2,084 1,290 6,677 3,296 2,092 1,289 23,099 4,781 6,551 24,137 5,097 6,879 23,759 4,984 6,748 23,842 5,020 6,773 23,926 5,044 6,800 24,025 5,083 6,822 24,083 5,086 6,853 24,214 5,105 6,887 24,279 5,133 6,923 24,295 5,152 6,943 24,406 5,194 6,987 24,493 5,195 7,023 24,612 5,217 7,063 24,647 5,216 7,087 24,848 5,269 7,147 16,711 2,899 3,888 9,923 17,063 2,943 3,952 10,167 16,935 2,916 3,927 10,092 16,977 2,922 3,930 10,125 17,038 2,933 3,943 10,162 17,031 2,935 3,947 10,149 17,031 2,935 3,932 10,164 17,020 2,936 3,952 10,132 17,046 2,940 3,964 10,142 17,048 2,962 3,957 10,129 17,188 2,965 3,973 10,250 17,213 2,977 3,978 10,258 17,271 2,981 3,996 10,294 17,253 2,982 3,994 10,277 17,321 2,989 4,007 10,325 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 ................................................................ Finance ............................................ Insurance......................................... Real e s ta te ...................................... S e r v i c e s ............................................................ Business se rvice s........................... Health s e rv ic e s ............................... G o v e rn m e n t ................................................. F e d e ra l............................................. State ................................................ L o c a l................................................. 2,022 p = preliminary NOTE: See notes on the data for a description of the most recent benchmark revision. 86 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 14. Average weekly hours of production or nonsupervisory workers on private nonagriculturai payrolls by industry, monthly data seasonally adjusted Industry Annual average 1986 1987 1987 Feb. Mar. Apr. May June July 1988 Aug. Sept. Oct. Nov. Dec. Jan.p Feb.p ............................................................... 34.8 34.8 34.9 34.8 24.7 34.9 34.8 34.8 34.9 34.6 34.9 34.9 34.6 34.7 34.9 M A N U F A C T U R I N G ........................................................................ 40.7 3.4 41.0 3.7 41.1 3.6 40.9 3.6 40.6 3.5 41.0 3.8 41.0 3.7 41.0 3.8 41.0 3.8 40.6 3.6 41.3 4.0 41.2 3.9 41.0 3.8 41.1 3.9 40.9 3.8 Overtime h o u rs ................................................... Lumber and wood p ro d u c ts ................................... Furniture and fix tu re s .............................................. Stone, clay, and glass p ro d u c ts............................ Primary metal in d u strie s......................................... Blast furnaces and basic steel p ro d u c ts .......... Fabricated metal products ..................................... 41.3 3.5 40.3 39.8 42.2 41.9 41.7 41.3 41.5 3.8 40.6 39.9 42.3 43.1 43.6 41.5 41.7 3.7 41.3 40.2 42.8 42.6 42.3 41.6 41.5 3.7 40.9 40.0 42.5 42.6 42.3 41.5 41.2 3.6 40.6 39.1 41.9 42.3 42.4 41.2 41.6 3.9 41.0 39.9 42.3 43.1 43.3 41.6 41.5 3.8 40.6 40.0 42.0 43.1 43.5 41.5 41.6 3.8 40.6 40.0 42.2 43.4 44.1 41.4 41.6 4.0 40.4 40.1 42.1 43.5 44.0 41.5 41.0 3.7 39.4 39.3 41.9 43.4 45.2 40.8 41.9 4.1 40.4 40.0 42.6 43.7 44.3 42.0 41.9 4.0 40.8 40.0 42.5 43.7 44.0 42.1 41.5 3.9 40.4 39.8 42.5 43.6 44.3 41.7 41.7 4.0 40.2 39.6 42.0 43.5 44.0 41.9 41.5 3.9 40.7 39.6 41.9 43.2 43.9 41.5 Machinery except electrical ................................... Electrical and electronic equipm ent...................... Transportation equipm ent....................................... Motor vehicles and equipm ent............................ Instruments and related p ro d u c ts ......................... 41.6 41.0 42.3 42.6 41.0 42.2 40.9 42.1 42.3 41.4 42.2 41.1 42.5 43.0 41.3 42.0 40.9 42.3 42.9 41.3 41.8 40.6 41.9 42.1 41.0 42.2 40.8 42.2 42.5 41.5 42.2 41.1 41.9 42.0 41.5 42.4 41.1 41.7 41.9 41.6 42.2 41.0 41.9 41.9 41.7 41.6 40.4 41.3 41.3 41.1 42.6 41.1 42.5 43.0 42.1 42.7 41.0 42.4 43.1 41.7 42.5 40.9 41.4 41.4 41.3 42.8 41.2 42.0 42.1 41.7 42.6 40.7 42.0 42.5 41.5 N o n d u r a b l e g o o d s ..................................................................... Overtime h o u rs ................................................... Food and kindred pro d u cts.................................... Textile mill p ro d u c ts ................................................ Apparel and other textile products........................ Paper and allied p ro d u c ts ...................................... 39.9 3.3 40.0 41.1 36.7 43.2 40.2 3.6 40.2 41.9 37 1 43.4 40.3 3.5 40.1 42.0 37.4 43.3 40.1 3.5 40.0 42.1 37.0 43.0 39.7 3.3 39.8 41.4 36.1 43.0 40.2 3.7 40.1 42.0 37.2 43.5 40.2 3.6 40.1 42.1 37.1 43.3 40.3 3.7 39.9 42.4 37.3 43.5 40.3 3.7 40.3 42.1 37.4 43.4 40.1 3.6 40.2 41.3 36.3 43.8 40.5 3.8 40.5 41.9 37.4 43.7 40.4 3.8 40.6 41.8 37.1 43.5 40.3 3.7 40.6 41.7 37.2 43.2 40.4 3.8 40.7 41.6 36.9 43.6 40.2 3.6 40.3 41.4 37.0 43.1 Printing and publishing............................................ Chemicals and allied products............................... Petroleum and coal p roducts................................. 38.0 41.9 43.8 38.0 42.3 43.9 38.1 42.2 44.0 37.9 42.0 44.1 37.7 42.2 43.9 37.9 42.1 44.3 38.1 42.0 43.3 38.1 42.2 44.4 37.9 42.4 43.3 38.2 42.8 43.2 38.0 42.7 43.5 38.0 42.7 43.6 37.9 42.7 44.3 38.0 42.6 44.4 37.9 42.6 44.2 T R A N S P O R T A T I O N A N D P U B L I C U T I L I T I E S ...... 39.2 39.1 39.2 39.0 39.0 39.2 38.8 39.2 39.3 39.1 39.3 39.1 39.0 39.4 39.1 W H O L E S A L E T R A D E ................................................................. 37.7 37.5 38.3 38.1 38.2 38.3 38.2 38.1 38.3 38.0 38.4 38.3 38.1 38.2 38.2 R E T A IL T R A D E 29.2 29.3 29.3 29.3 29.5 29.4 29.2 29.3 29.6 29.6 29.3 29.2 28.8 28.9 29.2 32.5 32.5 32.6 32.5 32.4 32.5 32.5 32.5 32.5 32.5 32.5 32.6 32.4 32.7 32.9 P R IV A T E S E C T O R Overtime h o u rs ................................................... D u r a b l e g o o d s ............................................................................... S E R V IC E S ............................................................................... .......................................................................................... p = preliminary NOTE: See “ Notes on the data” for a description of the most recent https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis benchmark adjustment. 87 MONTHLY LABOR REVIEW April 1988 • Current L abor Statistics: Em ploym ent D ata 15. Average hourly earnings of production or nonsupervisory workers on private nonagricultural payrolls by industry Industry Annual average 1986 1987 $8.98 Seasonally adjusted ............................................. $8.76 - M I N I N G .................................................................................................... 12.44 C O N S T R U C T I O N ............................................................................ 12.47 P R I V A T E S E C T O R ........................................................................ 1988 1987 Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan.p FebT $8.92 8.88 $8.92 8.91 $8.91 8.91 $8.93 8.95 $8.92 8.94 $8.91 8.96 $8.94 9.02 $9.06 9.02 $9.09 9.08 $9.14 9.12 $9.13 9.11 $9.18 9.14 $9.17 9.12 12.45 12.56 12.51 12.43 12.42 12.44 12.31 12.32 12.43 12.34 12.47 12.50 12.67 12.60 12.66 12.51 12.59 12.55 12.60 12.61 12.57 12.67 12.77 12.79 12.80 12.78 12.92 12.74 - 9.73 9.91 9.84 9.85 9.87 9.87 9.87 9.87 9.86 10.00 9.95 10.01 10.08 10.07 10.07 10.29 8.33 7.46 10.05 10.39 8.31 7.58 10.15 11.78 13.59 9.99 10.39 8.28 7.58 10.13 11.82 13.66 9.99 10.39 8.34 7.58 10.23 11.96 13.84 9.98 10.40 8.37 7.64 10.26 11.96 13.80 9.97 10.42 8.44 7.66 10.29 11.97 13.83 10.42 8.49 7.74 10.31 11.98 13.81 9.97 10.53 8.48 7.75 10.40 12.24 14.17 10.04 10.51 8.44 7.73 10.31 12.05 13.97 10.00 10.40 8.46 7.67 10.33 11.97 13.70 9.95 10.57 8.49 7.73 10.34 12.08 13.97 10.15 10.63 8.45 7.79 10.33 12.15 14.03 10.24 10.62 8.52 7.81 10.37 13.73 9.89 10.45 8.40 7.67 10.27 11.98 13.84 10.03 10.61 8.53 7.73 10.38 12.13 14.07 10.18 Machinery, except electrical .................................. 10.59 Electrical and electronic equipm ent...................... 9.65 Transportation equipm ent....................................... 12.81 Motor vehicles and equipm ent............................ 13.45 Instruments and related products ......................... 9.47 Miscellaneous m anufacturing................................. 7.54 10.77 9.90 12.96 13.57 9.74 7.74 10.68 12.86 13.49 9.67 7.66 10.74 9.89 12.83 13.36 9.74 7.72 10.76 9.90 12.90 13.43 9.78 7.70 10.81 9.98 13.07 13.69 9.80 7.76 10.89 13.49 9.67 7.68 10.70 10.76 9.83 ■ 9.84 12.85 12.88 13.42 13.47 9.69 9.70 7.72 7.74 9.95 13.09 13.73 9.81 7.77 10.00 12.88 10.70 9.82 12.80 13.40 9.67 7.67 10.86 9.84 10.72 9.84 13.18 13.82 9.87 7.81 10.96 10.05 13.26 13.90 9.88 7.91 8.94 8.74 12.85 6.93 5.84 11.18 9.16 8.92 13.81 7.18 5.95 11.42 9.08 8.91 13.44 7.11 5.93 11.26 9.09 8.93 13.80 7.12 5.93 11.27 9.14 8.95 14.28 7.12 5.94 11.37 9.13 8.96 14.53 7.13 5.89 11.40 9.11 8.91 15.57 7.15 5.91 11.41 9.16 14.85 7.14 5.89 11.48 9.12 8.80 14.20 7.16 5.90 11.41 9.28 8.92 12.89 7.23 9.18 Food and kindred p roducts.................................... Tobacco m anufactures........................................... Textile mill products ................................................ Apparel and other textile products........................ Paper and allied products ...................................... 9.24 8.96 13.44 7.31 9.30 9.05 13.56 7.33 Printing and publishing............................................ Chemicals and allied products............................... Petroleum and coal products................................. Rubber and miscellaneous plastics p ro d u c ts ..... Leather and leather products ................................ 9.99 11.98 14.18 8.73 5.92 10.28 12.37 14.57 10.16 10.14 12.30 14.50 8.82 6.01 6.12 10.19 12.31 14.52 8.84 6.05 10.19 12.27 14.43 8.87 6.04 10.25 12.37 14.48 8.93 5.98 10.31 12.34 14.52 8.90 6.06 10.17 12.24 14.50 8.80 6.06 T R A N S P O R T A T I O N A N D P U B L I C U T I L I T I E S ...... 11.70 12.01 11.93 11.90 11.94 11.95 11.91 12.00 W H O L E S A L E T R A D E ................................................................. 9.35 9.61 9.55 9.53 9.53 9.57 9.57 9.57 9.62 9.67 9.67 9.74 9.74 9.79 9.81 R E T A IL T R A D E 6.03 6.12 6.09 6.08 6.09 6.09 6.08 6.07 6.06 6.20 6.16 6.19 6.19 6.23 6.22 M A N U F A C T U R I N G ........................................................................ D u r a b le g o o d s ................................................................................ Lumber and wood p ro d u c ts ................................... Furniture and fix tu re s .............................................. Stone, clay, and glass p ro d u c ts............................ Primary metal industries ......................................... Blast furnaces and basic steel p ro d u c ts .......... Fabricated metal products ..................................... N o n d u r a b le g o o d s ...................................................................... ............................................................................... 11.86 8.88 12.21 14.51 8.79 8.88 10.11 10.92 10.91 10.01 10.01 13.22 13.96 9.92 7.96 13.20 13.92 9.95 7.89 9.31 9.05 14.23 7.36 6.04 11.49 6.00 6.01 11.50 11.54 9.32 9.06 14.07 7.38 6.04 11.50 10.42 12.52 14.66 8.91 6.09 10.39 12.56 14.75 8.93 10.44 12.62 14.72 9.00 10.41 12.54 14.91 8.97 6.11 6.11 6.11 10.44 12.49 14.89 8.97 6.16 12.09 12.17 12.17 12.12 12.14 8.86 11.67 12.77 7.24 5.99 11.48 6.01 10.48 12.56 14.71 8.98 6.09 12.04 12.09 6.01 12.10 13.92 10.19 F I N A N C E , I N S U R A N C E , A N D R E A L E S T A T E ...... 8.35 8.76 8.75 8.72 8.71 8.72 8.68 8.69 8.81 8.79 8.81 8.94 8.87 9.01 9.05 S E R V IC E S 8.16 8.47 8.43 8.41 8.40 8.38 8.35 8.33 8.40 8.55 8.61 8.71 8.73 8.78 8.80 ...................................................................................... - Data not available. p = preliminary 88 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NOTE: See “ Notes on the data" for a description of the most recent benchmark revision. 16. Average weekly earnings of production or nonsupervisory workers on private nonagricultural payrolls by industry Annual average 1988 1987 Industry 1986 1987 Feb. Mar. Apr. May June July Aug. Sept. Nov. Oct. Dec. Jan.p Feb.p P R IV A T E S E C T O R Current d o lla rs........................................................ $304.85 $312.50 $307.74 $308.63 $308.29 $310.76 $312.20 $312.74 $315.58 $314.38 $317.24 $318.07 $318.64 $315.79 $317.28 Seasonally adjusted........................................... 309.91 310.07 309.18 312.36 311.11 311.81 314.80 312.09 316.89 318.29 315.21 317.16 318.29 Constant (1977) dollars ....................................... 171.07 169.28 169.74 169.48 168.28 169.17 169.21 169.14 169.76 168.30 169.38 169.64 170.03 167.97 M I N I N G .................................................................................................... 524.97 526.64 527.52 522.92 519.57 526.61 527.46 518.25 522.37 523.30 526.92 527.48 535.00 532.14 527.94 C O N S T R U C T I O N ............................................................................ 466.38 477.28 460.37 470.87 469.37 485.10 480.44 485.20 489.06 464.83 496.25 474.88 480.53 465.12 461.19 396.01 222.23 406.31 401.47 221.44 402.87 221.24 398.75 217.78 403.68 219.75 405.66 219.87 400.72 216.72 403.27 216.93 408.00 218.42 410.94 219.40 414.41 221.02 421.34 224.83 412.87 219.61 409.85 220.10 Lumber and wood p ro d u c ts ................................... Furniture arid fix tu re s .............................................. Stone, clay, and glass p ro d u c ts ............................ Primary metal in d u strie s ......................................... Blast furnaces and basic steel p ro d u c ts .......... Fabricated metal products ..................................... 424.98 335.70 296.91 424.11 496.93 572.54 408.46 433.68 341.04 306.03 434.42 516.34 603.42 416.25 431.19 337.39 299.41 423.26 503.01 577.58 413.59 432.22 337.00 301.68 425.46 505.90 581.92 414.59 427.03 338.60 294.10 430.68 508.30 593.74 408.18 431.60 345.68 301.78 439.13 514.28 598.92 412.76 434.51 348.57 306.40 437.33 517.10 605.75 417.00 426.40 341.78 300.66 439.03 514.71 602.80 405.96 430.35 345.54 311.92 439.21 515.14 600.74 411.76 432.78 338.35 308.45 442.00 531.22 639.07 410.64 439.32 342.66 313.84 443.33 522.97 610.49 424.62 443.94 343.00 312.29 438.42 529.10 613.28 429.35 450.71 341.38 319.39 435.93 537.03 625.74 437.25 441.79 337.39 306.15 424.13 526.35 609.70 425.94 438.19 341.20 300.70 424.54 525.23 620.49 420.43 Machinery, except electrical .................................. Electrical and electronic equipm ent...................... Transportation equipm ent....................................... Motor vehicles and equipm ent............................ Instruments and related products ......................... Miscellaneous m anufacturing................................. 440.54 395.65 541.86 572.97 388.27 298.58 454.49 404.91 545.62 574.01 403.24 304.18 449.63 402.46 546.11 577.37 399.37 301.06 452.38 402.46 547.84 582.77 401.31 301.04 445.12 395.75 536.32 566.82 394.54 297.60 449.40 399.10 542.27 571.69 399.23 302.62 455.15 404.42 539.67 567.09 402.55 304.18 447.86 399.56 526.03 549.10 398.37 299.54 449.77 403.92 530.19 547.94 403.91 303.38 449.70 404.19 538.48 562.66 402.78 302.64 460.46 408.95 553.71 586.27 410.06 310.80 467.18 414.00 561.47 594.26 414.54 309.28 477.86 422.10 566.20 596.31 418.91 314.82 467.38 413.41 557.88 591.90 413.66 308.05 463.68 405.41 553.08 588.82 412.93 302.98 356.71 349.60 480.59 284.82 214.33 482.98 368.23 358.58 531.69 300.84 220.75 495.63 362.29 351.05 486.53 295.78 361.03 351.74 536.93 291.21 212.65 486.64 366.11 359.30 571.03 298.75 219.11 493.62 367.13 357.29 624.36 303.16 221.03 494.05 366.40 354.31 527.18 297.02 217.93 495.94 368.45 358.16 512.62 302.87 484.18 363.60 352.74 525.78 299.04 219.41 483.48 492.91 374.91 363.94 501.42 301.49 218.16 514.65 371.79 360.60 526.12 305.53 224.63 501.68 375.14 365.57 551.04 308.48 224.40 502.55 380.37 371.96 549.18 310.06 225.98 508.91 374.66 366.93 569.84 305.53 221.67 501.40 370.54 358.38 591.97 301.76 221.67 491.77 379.62 501.96 621.08 390.64 523.25 639.62 384.05 514.04 629.73 386.46 515.30 636.55 381.26 519.06 635.10 384.16 518.25 637.43 384.16 516.57 624.82 387.45 518.30 645.81 392.81 519.51 631.62 403.48 537.57 644.30 397.00 530.85 642.11 397.94 537.57 646.05 404.03 545.18 652.10 392.46 534.20 657.53 392.54 530.83 649.20 360.55 218.45 369.41 230.89 364.79 223.57 365.20 227.25 360.74 224.60 366.86 233.53 370.77 237.37 366.13 230.83 368.46 233.79 371.77 229.59 373.33 235.68 375.95 234.01 382.50 235.24 375.84 229.74 371.36 226.07 U T I L I T I E S ........................................................................................... 458.64 469.59 465.27 462.91 463.27 466.05 465.68 472.80 476.78 473.93 475.14 477.06 477.06 471.47 472.25 W H O L E S A L E T R A D E ................................................................. 359.04 367.10 361.95 361.19 363.09 366.53 367.49 366.53 369.41 368.43 371.33 373.04 373.04 372.02 371.80 R E T A IL T R A D E 176.08 179.32 174.78 175.71 177.83 178.44 179.97 182.10 183.62 183.52 179.87 179.51 181.37 176.31 177.89 303.94 317.11 318.50 316.54 316.17 316.54 315.95 314.58 320.68 316.44 318.92 324.52 319.32 326.16 331.23 265.20 275.28 273.13 272.48 271.32 271.51 272.21 273.22 276.36 277.02 279.83 283.08 282.85 285.35 287.76 M A N U F A C T U R IN G Current d o lla rs ......................................................... Constant ( 1977) d o lla rs ......................................... D u r a b le g o o d s ................................................................................ N o n d u r a b le g o o d s ...................................................................... Food and kindred pro d u cts .................................... Tobacco m anufactures........................................... Textile mill p ro d u cts................................................ Apparel and other textile products........................ Paper and allied p ro d u c ts ...................................... Printing and publishing............................................ Chemicals and allied products............................... Petroleum and coal products................................. Rubber and miscellaneous plastics p roducts................................................... Leather and leather products ................................ 220.00 2 20.66 - T R A N S P O R T A T IO N A N D P U B L IC ............................................................................... F IN A N C E , IN S U R A N C E , A N D R E A L ESTATE ............................................................................................... S E R V IC E S ...................................................................................... - Data not available. p = preliminary NOTE: See “ Notes on the data” for a description of the most recent benchmark revision. 7 in ( i i I ! t r y H O U rly E a m in 9 S ln d e x f o r P r o d u c tio n o r n o n s u p e r v is o r y w o r k e r s o n p r iv a t e n o n a g r ic u lt u r a l p a y r o lls b y Not seasonally adjusted Industry P R IV A T E S E C T O R (in c u r r e n t d o lla r s ) M in in g '....................................................... C o n s tru c tio n ............................................. M a n u fa c tu rin g ......................................... T ra n spo rta tion and public utilitie s .... W h o lesa le tra d e 1 .................................... R etail tra de .............................................. Finance, insurance, and real e s ta te ’ S e r v ic e s ............................... P R IV A T E S E C T O R [in c o n s ta n t (1 9 7 7 ) d o lla r s ] --------------------- Dec. 1987 172.2 176.2 176.8 176.9 181.7 151.8 174.0 175.0 176.0 159.4 187.8 179.6 183.7 155.5 177.3 178.6 179.7 162.5 190.9 186.2 184.8 156.7 177.6 177.8 180.3 162.8 193.9 187.2 184.2 156.5 177.7 178.3 180.3 162.8 194.2 187.2 95.0 94.0 94.1 - Jan. 1988p a v jju o ic u u c w u n c m e s e a s o n a l u u m p o n e n i IS s m a ll relative to the trend-cycle, irregular components, or both, and consequently cannot be separated with sufficient precision. - Data not available. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis S ea so na lly adju sted Feb. 1987 Feb. 1988p Feb. 1987 Oct. 1987 Nov. 1987 Dec. 1987 152.4 173.7 174.3 154.7 176.3 176.9 156.6 176.6 177.1 154.4 176.9 177.4 158.9 162.2 162.3 Jan. 1988P Feb. 1988p 156.8 177.0 177.4 157.1 177.4 177.6 162.8 162.4 186.3 93.8 93.6 93.7 p = preliminary. NOTE: See “ Notes on the data” for a description of the most recent benchmark revision. 89 MONTHLY LABOR REVIEW 18. April 1988 • Current L abor Statistics: Em ploym ent D ata Indexes of diffusion: Industries In which employment increased, data seasonally adjusted (In p ercent) Tim e span and year Jan. Feb. Mar. Apr. O ver 1986 1987 1988 1 -m onth span: ................................................................................ ............................................................... .......................................................... 53.2 53.5 57.6 48.1 56.8 59.7 48.1 58.6 O ver 1986 1987 1988 3-m o nth span: ........................................................................... ............................................................................. ........................................................................... 49.7 58.6 65.9 44,9 59.5 45.7 61.1 O ver 1986 1987 1988 6-m o nth span: .............................................................. .................................................................................... ................................................................................ 47.6 61.9 47.6 62.7 ” O ve r 1986 1987 1988 12-m onth span: ................................................................................... ....................................................................................... ............................................................................... 90 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June July Aug. Sept. Oct. Nov. 52.4 58.6 46.8 55.7 52.4 68.6 56.2 54.6 55.1 65.4 53.2 65.4 59.7 71.9 59.7 63.2 - - - - - - - - - 48.4 61.6 47.6 61.4 45.4 67.3 48.4 66.2 55.1 75.1 55.9 69.7 58.1 77.8 58.6 75.9 60.3 70.0 - - - - - - - - - 43.0 58.9 43.2 67.3 45.4 67.6 48.4 71.1 47.3 76.2 53.0 78.6 59.2 80.3 58.9 74.9 57.8 76.5 58.9 - “ “ “ ” “ “ “ - - 43.2 62.2 44.1 63.5 46.2 67.3 45.7 68.9 47.8 73.8 49.5 72.4 49.5 76.2 _ 54.9 _52.2 55.1 _ _56.5 “ “ - - - - - - - - ~ 51.6 76.5 spans. Data fo r th e 2 m o st re ce nt m o n th s sh ow n in each span are prelim inary. S ee th e “ D e finition s” In this section. See “ N o tes on the d a ta " fo r a d escriptio n of th e m o st re ce nt b e n chm ark revision. Annual data: Employment status of the noninstitutional population (N um bers in tho u san ds) E m p loym en t statu s 1979 1980 1981 1982 1983 1984 1985 1986 1987 N o n institu tion a l p o p u la tio n ............................................. 166,460 169,349 171,775 173,939 175,891 178,080 179,912 182,293 184,490 L ab or force: T o ta l (n u m b e r).............................................................. P ercent o f p o p u la tio n ................................................ 106,559 64.0 108,544 64.1 110,315 64.2 111,872 64.3 113,226 64.4 115,241 64.7 117,167 65.1 119,540 65.6 121,602 65.9 100,421 60.3 1,597 100,907 59.6 1,604 102,042 59.4 1,645 101,194 58.2 1,668 102,510 58.3 1,676 106,702 59.9 1,697 108,856 60.5 1,706 111,303 61.1 1,706 114,177 61.9 1,737 98,824 3 ,347 9 5,477 99,303 3,364 95,938 100,397 3,368 97,030 99,526 3,401 96,125 100,834 3,383 97,450 105,005 3,321 101,685 107,150 3 ,179 103,971 109,597 3,163 106,434 112.440 3,208 109,232 U nem ployed: T o ta l (n u m b e r)...................................................... P ercen t o f labor f o r c e ....................................... 6,137 5.8 7,637 7.0 8,273 7.5 10,678 9.5 10,717 9.5 8,539 7.4 8,312 7.1 8,237 6.9 7,425 6.1 N o t in la bo r fo rc e (num ber) ....................................... 59,900 60,806 61,460 62,067 6 2,665 62,839 62,744 6 2,752 62,888 E m ployed: T o ta l (num ber) ....................................................... P ercen t o f pop ulatio n ......................................... R esid en t A rm e d F o rc e s .................................. Civilian T o ta l .................................................................... A g r ic u ltu re ...................................................... N o na g ricu ltural in d u s trie s ......................... 20. Annual data: Employment levels by industry (N um b e rs in thou san ds) Industry 1979 1980 1981 1982 1983 1984 1985 1986 1987 T o ta l e m p lo y m e n t.................................................................................... Private s e c to r ......................................................................................... G o o d s -p ro d u c in g ............................................................................... M in in g ................................................ C o n structio n ................................................................................. M a n u fa c tu rin g ............................................................................... 89,623 73,876 26,461 958 4,463 21,040 90,406 74,166 25,658 1,027 4,346 20,285 91,156 75,126 25,497 1,139 4,188 20,170 89,566 73,729 23,813 1,128 3,905 18,781 90,200 74,330 23,334 952 3,948 18,434 94,496 78,472 24,727 966 4,383 19,378 97,519 81,125 24,859 927 4,673 19,260 99,610 82,900 24,681 783 4,904 18,994 102,112 85,049 24,884 741 5,031 19,112 63,363 5,136 5,204 14,989 4.975 17,112 64,748 5,146 5,275 15,035 5,160 17,890 6 5,659 5,165 5,358 15,199 5,298 18,619 65,753 5,082 5,278 15,179 5,341 19,036 66,866 4,954 5,268 15,613 5,468 19,694 6 9,769 5,159 5,555 16,545 5,689 20,797 72,660 5,238 5,717 17,356 5,955 22,000- 74,930 5,244 5,735 17,845 6,297 23,099 77,228 5 ’378 5,797 18,264 6,589 24,137 15,947 2,773 3,541 9,633 16,241 2,866 3,610 9,765 16,031 2,772 3,640 9,619 15,837 2,739 3,640 9,458 15,869 2.774 3,662 9,434 16,024 2,807 3,734 9,482 16,394 2,875 3,832 9,687 16,711 2,899 3,888 9,923 17,063 2,943 3,952 10,167 S e rv ic e -p ro d u c in g ......................... T ra n spo rta tion and pub lic u tilit ie s ............... W h o lesa le trade ....................... R etail trade ................................ Finance, insurance, and real e s t a t e .................. S e r v ic e s .............................................. G o v e rn m e n t.................................. F e d e ra l............................................... S ta te .................................................. Local ......................................................... NO TE: Dec. 53.5 58.4 - D ata not available. NO TE: Figures are th e p e rcen t o f in du strie s w ith e m p loym en t rising. (H alf o f th e unch an g ed co m p o n e n ts are co u n te d as rising.) D ata are ce n te re d w ith in th e 19. May S ee “ N o tes on the d a ta ” fo r a d escriptio n o f th e m o st re ce nt b e n chm ark revision. 21. Annual data: Average hours and earnings of production or nonsupervisory workers on nonagricultural payrolls, by industry Industry 1984 1985 1986 1987 280.70 35.2 8.32 292.86 34.9 8.57 299.09 34.8 8.76 304.85 34.8 8.98 312.50 42.7 10.77 459.88 42.5 11.28 479.40 43.3 11.63 503.58 43.4 11.98 519.93 42.2 12.44 524.97 42.3 12.45 526.64 36.9 10.82 399.26 36.7 11.63 426.82 37.1 11.94 442.97 37.8 12.13 458.51 37.7 12.32 464.46 37.4 12.47 466.38 12.66 477.28 39.7 7.27 288.62 39.8 7.99 318.00 38.9 8.49 330.26 40.1 8.83 354.08 40.7 9.19 374.03 40.5 9.54 386.37 40.7 9.73 396.01 41.0 9.91 406.31 39.9 8.16 325.58 39.6 8.87 351.25 39.4 9.70 382.18 39.0 10.32 402.48 39.0 10.79 420.81 39.4 438.13 39.5 11.40 450.30 39.2 11.70 458.64 469.59 38.8 6.39 247.93 38.5 6.96 267.96 38.5 7.56 291.06 38.3 8.09 309.85 38.5 8.55 329.18 38.5 8.89 342.27 38.4 9.16 351.74 38.4 9.35 359.04 38.2 9.61 367.10 30.6 4.53 138.62 30.2 4.88 147.38 30.1 5.25 158.03 29.9 5.48 163.85 29.8 5.74 171.05 29.8 5.85 174.33 29.4 5.94 174.64 29.2 6.03 176.08 29.3 179.32 36.2 5.27 190.77 36.2 5.79 209.60 36.3 6.31 229.05 36.2 6.78 245.44 36.2 7.29 263.90 36.5 7.63 278.50 36.4 7.94 289.02 36.4 8.35 303.94 36.2 8.76 317.11 32.7 5.36 175.27 32.6 5.85 190.71 32.6 6.41 208.97 32.6 6.92 225.59 32.7 7.31 239.04 32.6 7.59 247.43 32.5 7.90 256.75 32.5 8.16 265.20 32.5 8.47 275.28 1981 1982 1983 235.10 35.2 7.25 255.20 34.8 7.68 267.26 43.0 8.49 365.07 43.3 9.17 397.06 43.7 10.04 438.75 37.0 9.27 342.99 37.0 9.94 367.78 40.2 6.70 269.34 1979 1980 35.7 6.16 219.91 P r iv a te s e c t o r Average weekly h o u rs ................................................................. Average hourly earnings (in d o lla rs )......................................... Average weekly earnings (in dollars) ....................................... 35.3 6.66 35.0 8.02 M in in g Average weekly hours ........................................................... Average hourly earnings (in d o lla rs )................................... Average weekly earnings (in d o lla rs ).................................. C o n s tr u c tio n Average weekly hours ........................................................... Average hourly earnings (in d o lla rs )................................... Average weekly earnings (in d o lla rs ).................................. 37.7 M a n u fa c tu r in g Average weekly hours ........................................................... Average hourly earnings (in dollars) ................................... Average weekly earnings (in d o lla rs ).................................. T r a n s p o r t a t io n a n d p u b lic u tilitie s Average weekly hours ........................................................... Average hourly earnings (in dollars) ................................... Average weekly earnings (in d o lla rs ).................................. 11.12 39.1 12.01 W h o le s a le tr a d e Average weekly hours ........................................................... Average hourly earnings (in d o lla rs )................................... Average weekly earnings (in d o lla rs ).................................. R e ta il t r a d e Average weekly hours ........................................................... Average hourly earnings (in d o lla rs )................................... Average weekly earnings (in d o lla rs ).................................. 6.12 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 Average weekly hours ........................................................... Average hourly earnings (in d o lla rs )................................... Average weekly earnings (in d o lla rs ).................................. S e r v ic e s Average weekly hours ........................................................... Average hourly earnings (in dollars) ................................... Average weekly earnings (in d o lla rs ).................................. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW 22. April 1988 • Current L abor Statistics: Com pensation and Industrial Relations D ata Employment Cost Index, compensation,1 by occupation and industry group (June 1981=100) 1985 1986 1987 Percent change Series Dec. Mar. June Sept. Dec. Mar. June Sept. Dec. 3 months ended 12 months ended Dec. 1987 C ivilian w o rk e rs 2 .......................................................................... Workers, by occupational group: White-collar workers ................................................................. Blue-collar w o rkers.................................................................... Service occupations.................................................................. Workers, by industry division: G oods-producing......................................................................... M anufacturing............................................................................ Service-producing....................................................................... Services..................................................................................... Health s e rvices...................................................................... H ospitals................................................................................. Public administration 3 ............................................................. Nonmanufacturing....................................................................... Private Industry w o rk e r s .......................................................... Workers, by occupational group: White-collar w o rkers............................................................... Professional specialty and technical o ccup ations.......... Executive, administrative, and managerial occupations Sales occupations................................................................. Administrative support occupations, including c le ric a l................................................................................... Blue-collar w o rkers................................................................. Precision production, craft, and repair o ccup ation......... Machine operators, assemblers, and in s p e c to rs ............ Transportation and material moving occupations........... Handlers, equipment cleaners, helpers, and laborers .... Service occup ations............................................................... Workers, by industry division: Goods-producing...................................................................... Construction ............................................................................ M anufacturing.............................................................. Durables ................................................................................. N ondurables.......................................................................... Service-producing .................................................................... Transportation and public utilities........................................ Transportation........................................................................ Public u tilitie s ......................................................................... Wholesale and retail tra d e ................................................... Wholesale t ra d e .................................................................... Retail trade .................................................................... Finance, insurance, and real e s ta te .................................... S e rv ic e ............................................................................ Health se rvice s......................................................... Hospitals .................................................................. Nonmanufacturing .................................................................. S t a t e a n d lo c a l g o v e r n m e n t w o r k e r s .............................................. Workers, by occupational group: White-collar w o rkers.......................................................... Blue-collar w o rk e rs ...................................................... Workers, by industry division: S e rv ic e s .................................................................. Hospitals and other services 4 ........................................... Health s e rv ic e s ................................................................ Schools .......................................................................... Elementary and secon dary............................................. Public administration 3 ............................................................. 129.2 130.6 131.5 133.0 133.8 135.0 135.9 137.5 138.6 0.8 3.6 131.6 124.9 131.8 133.1 126.2 133.1 134.2 126.8 133.7 136.0 127.8 135.4 136.9 128.4 136.6 138.5 129.1 138.0 139.3 130.1 138.5 141.2 131.3 139.9 142.2 132.5 140.8 .7 .9 3.9 3.2 3.1 125.5 126.0 131.5 137.1 134.8 130.6 126.9 127.7 132.9 138.8 _ 136.8 131.9 128.1 128.7 133.7 139.4 _ 138.0 132.8 128.8 129.3 135.6 142.4 _ 140.6 134.6 129.5 130.1 136.5 143.6 _ - 131.1 131.5 138.9 145.8 _ - 132.2 132.7 140.8 149.2 _ - 133.5 134.1 141.7 150.6 _ - 1.0 1.1 .6 141.6 135.4 130.2 130.7 138.1 145.2 _ 144.1 136.9 144.75' 137.8 146.4 139.6 127.5 128.9 129.9 130.8 131.6 132.9 133.8 129.8 - 131.3 - 132.5 - 133.5 - 134.3 - 136.1 - 124.4 129.5 125.7 130.9 126.3 131.1 127.2 132.3 127.8 133.5 125.3 126.0 _ - 126.7 127.7 _ - 127.8 128.7 _ - 128.6 - 129.4 _ _ _ _ _ 130.8 _ _ _ _ _ _ 131.6 _ _ _ _ _ 135.1 136.0 .7 3.3 137.0 - 138.5 - 139.3 - .6 .9 .5 -.3 3.7 4.1 4.4 128.4 134.7 129.5 135.2 130.6 135.9 _ 131.8 136.7 129.2 _ 129.9 - 130.8 - 133.2 - 1.0 129.3 _ - 130.1 _ _ 130.7 _ _ 131.5 _ _ 131.9 132.7 _ _ 134.1 _ _ 1.1 1.0 1.2 132.7 _ _ _ _ 133.5 _ _ _ 136.3 _ _ _ _ 137.7 _ _ _ _ _ _ _ _ _ _ _ _ 138.4 _ _ _ _ _ _ _ _ .5 .4 _ 135.3 _ _ _ _ _ _ _ .1 .1 1.0 1.2 5.2 4.3 4.9 _ _ _ _ _ _ _ .9 .9 .9 .8 1.3 .6 1.1 .6 .7 .2 .6 .2 .7 1.2 4.1 3.1 3.1 3.4 2.9 2.8 2.4 3.1 3.7 3.1 2.7 3.8 3.7 3.0 2.7 3.3 3.0 4.0 2.5 2.0 - - - - - - - - - 1.3 128.4 129.7 130.6 131.7 132.4 134.1 135.1 136.4 137.1 .5 3.5 137.5 138.9 139.7 143.6 144.7 145.9 146.3 149.7 151.1 .9 4.4 138.6 132.7 140.0 134.7 140.5 136.3 145.0 138.5 146.0 139.5 147.2 140.8 147.5 141.3 151.2 143.3 152.7 144.3 1.0 4.6 3.4 139.1 135.2 140.4 136.8 140.8 137.9 145.5 139.4 146.6 141.1 147.3 142.5 147.6 143.3 151.8 145.1 153.1 146.3 - - - - - - - - - .8 1.1 140.3 142.0 134.8 141.5 143.0 136.8 141.7 143.2 138.0 147.6 149.4 140.6 148.4 150.3 141.6 148.9 150.5 144.1 149.1 150.7 144.7 154.1 156.5 146.4 155.5 157.8 148.1 .8 1.2 1 Cost (cents per hour worked) measured in the Employment Cost Index consists of wages, salaries, and employer cost of employee benefits. 2 Consist of private industry workers (excluding farm and household workers) and State and local government (excluding Federal Government) workers. 92 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 148.1 140.5 1.2 1.2 1.2 .6 3.1 3.1 3.8 4.9 4.4 4.8 4.6 3.8 _ _ _ _ .6 .7 .9 .9 3 Consist of legislative, judicial, administrative, and regulatory 4 Includes, for example, library, social, and health services. - Data not available. 4.4 3.7 4.7 4.8 5.0 4.6 activities. 23. Employment Cost Index, wages and salaries, by occupation and industry group (June 1981=100) Percent change 1987 1986 1985 Series Dec. Mar. June Sept. Dec. Mar. June Sept. Dec. 3 months ended 12 months ended Dec. 1987 C ivilian w o rkers 1 .......................................................................... Workers, by occupational group: White-collar workers ................................................................. Blue-collar w o rkers.................................................................... Service occupations.................................................................. Workers, by industry division G oods-producing......................................................................... M anufacturing............................................................................ Service-producing ....................................................................... S e rv ic e s ................................................................................... Health se rvice s...................................................................... H ospitals................................................................................. Public administration 2 ........................................................... Nonmanufacturing ..................................................................... 127.0 128.3 129.3 130.7 131.5 132.8 133.5 135.2 136.1 0.7 3.5 129.8 122.3 128.6 131.2 123.4 129.8 132.4 124.1 130.0 134.1 125.0 131.7 135.0 125.6 132.8 136.6 126.2 134.2 137.3 127.1 134.7 139.4 128.3 136.0 140.2 129.4 136.6 .6 3.9 3.0 2.9 123.1 123.8 129.4 134.8 - 124.4 125.3 130.7 136.4 133.8 129.6 125.6 126.5 131.5 137.0 134.6 130.4 126.3 127.2 133.4 139.9 137.5 132.2 127.0 127.9 134.2 141.1 138.1 133.0 127.8 128.7 135.8 142.7 140.5 134.5 128.5 129.5 136.5 143.4 141.0 135.2 129.8 130.8 138.5 146.8 142.6 137.1 131.0 132.2 139.2 148.2 143.8 137.8 - 132.0 128.4 .9 .4 .5 3.1 3.4 3.7 5.0 4.6 5.0 4.1 3.6 .9 1.1 .5 1.0 1.1 1.2 .8 Private in dustry w o r k e r s ...................................................... Workers, by occupational group: White-collar w o rke rs............................................................ Professional specialty and technical occup ations...... Executive, administrative, and managerial o ccup ations...................................................................... Sales occupations............................................................. Administrative support occupations, including c le ric a l............................................................................... 125.6 126.8 127.9 128.8 129.5 130.8 131.7 133.0 133.8 .6 3.3 128.3 131.5 129.6 132.7 131.1 134.0 132.0 135.4 132.7 136.4 134.6 138.4 135.4 139.1 137.0 141.2 137.6 142.6 .4 1.0 3.7 4.5 128.4 122.5 130.5 122.4 132.1 124.3 132.4 125.2 133.5 124.9 135.6 126.7 136.4 127.1 138.6 127.0 139.2 126.1 .4 -.7 4.3 127.9 129.6 130.8 131.7 132.7 134.3 135.5 137.1 138.1 .7 4.1 Blue-collar w o rk e rs .............................................................. Precision production, craft, and repair occup ations..................................................................... Machine operators, assemblers, and in spectors........ Transportation and material moving occupations....... Handlers, equipment cleaners, helpers, and la b o re rs............................................................................. Service occu p a tio n s............................................................ 122.0 123.1 123.7 124.5 125.1 125.6 126.6 127.7 128.9 .9 3.0 123.8 125.3 121.6 122.6 118.0 125.7 123.6 118.9 126.7 124.1 119.8 127.4 124.9 117.8 120.1 127.9 125.5 120.5 128.8 126.7 121.5 130.2 127.5 122.3 131.1 129.2 122.9 .7 1.3 .5 2.9 3.4 2.3 119.8 126.6 120.3 128.0 120.9 128.9 121.4 130.1 121.9 131.4 122.6 131.9 123.7 132.6 125.0 133.2 1.1 128.0 3.0 2.4 122.9 117.9 123.8 123.4 124.6 127.8 125.2 123.7 128.3 121.9 126.5 134.1 124.2 118.3 125.3 124.8 126.1 129.0 126.3 124.5 129.7 122.5 126.6 136.2 125.4 119.8 126.5 125.8 127.9 129.9 126.6 125.8 131.2 123.7 128.0 136.9 126.1 120.5 127.2 126.4 128.5 130.9 127.3 126.5 131.8 124.4 129.0 138.2 - 126.8 127.9 127.2 129.3 131.6 127.5 126.9 133.1 124.5 130.0 139.5 - 127.5 121.7 128.7 127.7 130.5 133.4 128.1 127.9 134.8 125.2 133.5 141.8 - 128.3 122.7 129.5 128.7 131.0 134.3 129.3 129.9 137.2 127.1 131.5 142.8 - 129.6 123.8 130.8 129.7 132.8 135.7 130.0 130.6 137.8 127.8 131.8 145.9 - 130.8 124.7 132.2 131.1 134.1 136.2 130.2 130.7 138.5 127.7 131.6 147.1 - Workers, by industry division: G oods-producing................................................................... Construction ......................................................................... M anufacturing....................................................................... D u rab les............................................................................. Nondurables....................................................................... Service-producing.................................................................. Transportation and public u tilitie s .................................. Transportation.................................................................. Public utilitie s.................................................................... Wholesale and retail tra d e .............................................. Wholesale trade ............................................................. Retail tra d e ...................................................................... Finance, insurance, and real e s ta te .............................. S e rvices.............................................................................. Health services ................................................................ H o spitals.......................................................................... - - 120.0 - - - - - 120.8 - - - .5 .9 .7 1.1 1.1 1.0 .4 .2 -.2 .6 .1 .5 1.0 3.2 3.2 3.4 3.1 3.7 3.5 2.1 1.7 2.6 3.0 4.1 2.6 1.2 -.1 -.2 .8 1.1 1.2 5.4 4.6 5.1 Nonmanufacturing................................................................ 126.6 127.7 128.7 129.7 130.4 131.9 132.8 134.2 134.8 .4 3.4 State and local g ove rnm ent w o rk e r s ................................ Workers, by occupational group White-collar w o rke rs............................................................ Blue-collar w o rk e rs .............................................................. Workers, by industry division Services ................................................................................ Hospitals and other services 3 ....................................... Health services ................................................................ S ch o o ls............................................................................... Elementary and secondary ......................................... Public administration 2 ........................................................ 134.2 135.5 136.0 140.4 141.4 142.5 142.8 146.1 147.4 .9 4.2 135.3 128.4 136.6 130.4 137.0 131.9 141.8 134.5 142.8 135.1 143.9 136.3 144.1 136.9 147.7 139.0 149.3 139.6 1.1 4.6 3.3 135.6 130.9 136.8 132.4 137.1 133.3 142.1 135.8 143.3 137.3 143.9 138.6 145.5 146.5 140.5 144.2 139.4 145.6 146.6 141.0 148.2 141.2 150.3 152.0 142.6 149.5 142.2 151.8 153.4 143.8 1 2 - 137.0 138.5 132.0 - 138.0 139.4 133.8 Consists of private industry workers (excluding farm and household workers) and State and local government (excluding Federal Government) workers. Consists of legislative, judicial, administrative, and regulatory activities. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - 138.2 139.4 134.6 - 144.1 145.7 137.5 - 145.1 146.4 138.1 3 Includes, for example, library, social and health services, - Data not available. .4 .9 .7 1.0 1.0 .9 .8 4.3 3.6 4.4 4.6 4.8 4.1 MONTHLY LABOR REVIEW April 1988 24. • Current Labor Statistics: Compensation and Industrial Relations Data Employment Cost Index, private nonfarm workers, by bargaining status, region, and area size (June 1981=100) 1985 1986 Percent change 1987 3 months ended Series Dec. Mar. June Sept. Dec. Mar. Sept. June Dec. 12 months ended Dec. 1987 C O M P E N S A T IO N W o r k e r s , b y b a r g a in in g s t a t u s ' Union ............................................................................................. G oods-producing....................................................................... Service-producing...................................................................... Manufacturing ............................................................................ Nonmanufacturing ..................................................................... 127.1 125.2 130.2 125.5 128.6 128.4 126.4 131.6 127.0 129.7 128.7 126.7 131.9 126.9 130.4 129.4 127.3 132.8 127.5 131.2 129.8 127.5 133.4 127.9 131.5 130.5 128.0 134.4 128.0 132.6 131.2 128.7 135.2 128.7 133.5 132.0 129.5 135.9 129.5 134.3 133.4 131.3 136.7 131.5 135.1 1.1 2.8 1.4 3.0 2.5 N o nunion....................................................................................... G oods-producing....................................................................... Service-producing...................................................................... Manufacturing ............................................................................ Nonmanufacturing ..................................................................... 127.5 125.1 129.0 126.3 128.1 129.0 126.7 130.4 128.1 129.5 130.2 128.2 131.4 129.7 130.4 131.2 129.1 132.5 130.4 131.6 132.1 130.0 133.4 131.4 132.5 133.6 130.8 135.3 132.2 134.3 134.6 131.8 136.4 133.2 135.3 136.1 133.1 137.9 134.6 136.8 129.9 127.2 124.6 129.8 131.6 128.7 125.9 130.8 133.3 129.6 126.2 131.6 134.2 130.7 127.3 132.1 135.2 131.4 128.1 132.8 137.4 132.1 129.1 134.1 138.6 133.2 130.2 134.2 128.1 123.9 129.5 125.5 130.5 126.4 131.4 127.2 132.2 127.9 133.5 129.0 Union ............................................................................................. G oods-producing....................................................................... Service-producing...................................................................... Manufacturing ............................................................................ Nonm anufacturing..................................................................... 124.7 122.7 127.8 123.3 125.9 125.6 123.4 129.0 124.2 126.9 126.1 124.1 129.3 124.6 127.4 126.9 124.5 130.5 125.0 128.5 127.2 124.8 130.9 125.5 128.7 N o nunion....................................................................................... G oods-producing....................................................................... Service-producing...................................................................... Manufacturing ............................................................................ Nonmanufacturing ..................................................................... 125.9 123.0 127.7 124.4 126.6 127.3 124.5 128.9 126.1 127.8 128.5 126.1 129.9 127.7 128.9 129.4 127.0 130.8 128.5 129.8 128.1 125.4 122.9 127.1 129.2 126.8 124.2 128.1 131.3 127.8 124.4 128.9 126.3 127.4 123.6 128.5 124.5 .6 1.5 2.8 .6 2.7 136.9 134.1 138.6 135.6 137.5 .6 .8 3.6 3.2 3.9 3.2 3.8 140.3 134.2 131.2 135.8 141.9 135.4 131.7 136.3 1.1 134.4 130.2 135.8 131.3 136.7 132.0 .7 .5 127.7 125.0 131.7 125.6 129.5 128.3 125.8 132.2 126.2 130.1 129.1 126.5 132.9 127.0 130.8 130.5 128.5 133.6 129.3 131.5 1.1 1.6 3.0 .5 2.1 130.3 127.8 131.7 129.5 130.6 131.8 128.8 133.6 130.6 132.4 132.8 129.6 134.6 131.5 133.4 134.3 131.1 136.2 133.0 134.9 135.0 132.1 136.7 133.9 135.4 132.3 128.8 125.3 129.3 133.1 129.4 126.2 130.1 135.4 130.1 127.4 131.2 136.6 131.1 128.5 131.1 138.3 132.1 129.6 133.1 139.7 133.0 129.9 133.5 1.0 5.0 .7 2.8 .2 2.9 .3 2.6 129.4 125.0 130.2 125.6 131.6 126.6 132.4 127.8 133.7 129.1 134.6 129.8 .7 .5 3.4 3.3 .5 .7 .5 W o r k e r s , b y r e g io n 1 N ortheast....................................................................................... South ............................................................................................. Midwest (formerly North C e ntral).............................................. W e s t................................................................................................ 5.0 3.0 .9 .4 .4 2.8 2.6 W o r k e r s , b y a r e a s iz e 1 Metropolitan a re a s ....................................................................... Other a re a s ................................................................................... 3.4 3.2 W A G E S A N D S A L A R IE S W o r k e r s , b y b a r g a in in g s ta tu s 1 2.6 1.8 3.0 .5 2.2 .5 3.6 3.4 3.8 3.4 3.7 .8 .4 .7 .4 W o r k e r s , b y r e g io n ' N ortheast....................................................................................... South ........................................................................................... Midwest (formerly North C e ntral).............................................. W e s t............................................................................. W o r k e r s , b y a r e a s iz e ' Metropolitan a re a s ....................................................................... Other a re a s ................................................................................... 122.0 1 The indexes are calculated differently from those for the occupation and industry groups. For a detailed description of the index calculation, see the Monthly Labor Review Technical Employment Cost Index,” May 1982. Note, “ Estimation procedures for the 25. Specified compensation and wage adjustments from contract settlements, and effective wage adjustments, private industry collective bargaining situations covering 1,000 workers or more (in percent) Quarterly average Annual average 1987 1986 Measure 1985 1986 IF IVP IIP I II III IV I 0.7 0.7 1.2 2.7 2.4 1.7 2.4 4.1 3.9 2.5 1.6 2.0 2.1 1.2 1.8 2.6 2.9 2.1 2.0 1.0 .2 .9 .8 .2 .3 .6 .1 .3 S p e c ifie d a d ju s tm e n ts : Total compensation 1 adjustments, 2 settlements covering 5,000 workers or more: First year of c o n tra c t............................................... Annual rate over life of c o n tra c t............................ 2.7 1.1 1.6 0.6 1.2 Wage adjustments, settlements covering 1,000 workers or more: First year of c o n tra c t............................................... Annual rate over life of c o n tra c t............................ 2.3 2.7 1.2 1.8 .8 1.3 .8 1.5 2.0 1.5 3.3 .7 2.3 .5 1.8 1.7 .4 .7 .2 .2 2.6 2.1 3.4 2.4 2.4 1.8 E f f e c t iv e a d ju s tm e n ts : Total effective wage adjustment 3 ............................ From settlements reached in period ..................... Deferred from settlements reached in earlier p erio ds....................................................................... From cost-of-living-adjustments c la u s e s .............. .6 (4) ' Compensation includes wages, salaries, and employers’ cost of employee benefits when contract is negotiated. 2 Adjustments are the net result of increases, decreases, and no changes in compensation or wages. 94 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis .7 .5 .5 .2 .1 .2 .5 .2 .1 .6 (4) (4) .4 (4) .3 .7 .1 .2 3 Because of rounding, total may not equal sum of parts, 4 Between -0.0 5 and 0.05 percent. p = preliminary, .2 26. Average specified compensation and wage adjustments, major collective bargaining settlements in private industry situations covering 1,000 workers or more during 4-quarter periods (in percent) Average for four quarters ending1987 1986 Measure I II IV III IF I IMP IVP Specified total compensation adjustments, settlements covering 5,000 workers or more, all industries: First year of c o n tra c t................................................................................... Annual rate over life of c o n tra c t................................................................ 2.3 2.5 2.0 1.4 2.0 1.6 2.2 1.5 0.9 1.4 1.1 1.6 1.2 2.2 .8 1.9 .9 1.2 1.9 1.7 2.1 1.2 2.0 1.5 3.1 2.8 2.6 2.6 Specified wage adjustments, settlements covering 1,000 workers or more: All industries First year of c o n tra c t........................................................................ ........ Contracts with COLA C lauses............................................................... Contracts without COLA clauses ......................................................... Annual rate over life of c o n tra c t............................................................. Contracts with COLA c la u s e s ............................................................... Contracts without COLA clauses ......................................................... Manufacturing First year of c o n tra c t................................................................................. Contracts with COLA cla u s e s ............................................................... Contracts without COLA clauses ......................................................... Annual rate over life of c o n tra c t............................................................. Contracts with COLA cla u s e s ............................................................... Contracts without COLA clauses ......................................................... Nonmanufacturing First year of c o n tra c t................................................................................. Contracts with COLA cla u s e s ............................................................... Contracts without COLA clauses ......................................................... Annual rate over life of c o n tra c t............................................................. Contracts with COLA cla u s e s ............................................................... Contracts without COLA clauses ......................................................... Construction First year of c o n tra c t................................................................................ Contracts with COLA cla u s e s ............................................................... Contracts without COLA clauses ......................................................... Annual rate over life of c o n tra c t............................................................. Contracts with COLA cla u s e s ............................................................... Contracts without COLA clauses ......................................................... 1 Data do not meet publication standards. 2 Between -0.0 5 and 0.05 percent. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1.6 1.8 2.5 2.5 2.5 1.2 2.2 1.7 1.8 2.5 1.7 2.1 2.0 1.6 .1 - 1.0 1.1 - 2.0 - 1.2 1.3 - 2.8 1.8 2.1 .7 -.4 1.4 .3 .2 2.0 1.5 .9 1.1 -.1 .8 .8 .9 2.8 2.6 2.1 3.5 2.7 3.0 3.6 3.4 2.4 3.3 2.7 1.9 2.3 2.5 2.8 2.6 2.2 1.6 2.3 2.3 1.4 2.4 2.2 2.4 2.5 2.8 O 0 1.1 O 1.2 2.6 (1) p 2.6 1.6 2.6 = preliminary. 1.8 .9 1.4 1.8 1.8 1.8 2.0 2.1 2.1 2.1 2.2 1.7 1.7 1.5 2.2 2.6 2.6 -.8 1.8 -1.5 1.3 -3.5 (2) 1.3 -2.7 .3 -.2 .8 -.6 .8 -.2 1.1 2.1 -.1 1.0 1.0 1.2 2.0 2.1 2.0 2.2 2.2 2.2 2.3 2.5 2.1 2.1 2.4 2.7 2.3 2.4 2.2 2.6 2.6 2.2 2.8 2.8 2.1 .9 2.4 2.2 1.4 2.3 2.5 2.4 1.6 1.6 2.4 2.5 1.4 2.5 2.6 2.7 3.7 2.7 2.9 3.8 2.9 2.2 2.3 2.2 2.1 2.1 2.4 1.3 1.3 1.0 2.1 2,4 1.9 2.5 2.7 2.7 2.4 3.0 2.8 3.0 O O (’ ) 0 2.9 (') (') 3.2 3.1 (') (') MONTHLY LABOR REVIEW April 1988 • Current Labor Statistics: Compensation and Industrial Relations Data 27. Average effective wage adjustments, private industry collective bargaining situations covering 1,000 workers or more during 4-quarter periods (in percent) Average for four quarters ending-- For all w o rk e rs :1 T o ta l................................................................................................................ From settlements reached in period ...................................................... Deferred from settlements reached in earlier period .......................... From cost-of-living-adjustments c la u s e s ................................................ For w o rk e rs receiving changes: T o ta l................................................................................................................ From settlements reached in period ...................................................... Deferred from settlements reached in earlier p e rio d .......................... From cost-of-living-adjustments c la u s e s ............................................... 1987 1986 Effective wage adjustment II III IV I IF IMP IVP 2.9 .5 2.3 .5 2.2 2.6 .4 1.5 .3 1.6 .7 .2 .1 .3 .5 1.7 .4 3.1 .7 1.6 .2 2.3 .5 1.7 2.0 1.8 3.8 2.5 3.4 3.1 1.7 3.8 2.8 1.6 2.5 1.2 2.8 1.0 3.9 3.7 3.5 2.0 1.0 1.0 .6 1.8 1 Because of rounding, total may not equal sum of parts. p 3.2 1.9 3.3 2.3 1.8 .5 3.6 2.9 3.3 2.6 = preliminary. 28. Specified compensation and wage adjustments from contract settlements, and effective wage adjustments, State and local government collective bargaining situations covering 1,000 workers or more (in percent) Annual average Measure 1985 1986 4.2 5.1 6.2 6.0 4.9 4.8 4.6 5.4 5.7 5.1 5.5 2.4 3.0 49 1987 Specified adjustments: Total compensation 1 adjustments, 2 settlements covering 5,000 workers or more: First year of contract .......................................................................................... Annual rate over life of c o n tra c t...................................................... Wage adjustments, settlements covering 1 ,000 workers or more: First year of c o n tra c t............................................................................................ Annual rate over life of c o n tra c t..................................................................................... Effective adjustments: Total effective wage adjustment 3 ................................................................................... From settlements reached in perio d .................................................................... Deferred from settlements reached in earlier periods .......................................................................................................... From cost-of-living-adjustment c la u s e s ...................................................................... 1 Compensation includes wages, salaries, and employers’ cost of employee benefits when contract is negotiated. 2 Adjustments are the net result of increases, decreases, and no changes in compensation or wages. 96 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5.7 4.1 1.6 Because of rounding, total may not equal sum of parts. Less than 0.05 percent. 2.6 2.2 (4) 29. Work stoppages involving 1,000 workers or more 1988 1987 Annual totals Measure 1986 Number of stoppages: Beginning in p e rio d ....................... In effect during p e rio d .................. Workers involved: Beginning in period (in thousands).................................... In effect during period (in thousands).................................... Days idle: Number (in thousands)................. Percent of estimated working tim e 1 ............................................... 1987 Mar. Feb. Apr. July Sept. Aug. Oct. Nov. Jan.p Dec. Feb.p 69 72 46 51 5 7 3 5 2 3 7 8 12 6 3 6 11 5 11 1 12 2 14 7 15 0 5 5 5 8 533.0 174.4 37.6 12.2 2.7 7.0 16.1 8.4 18.4 45.9 1.3 11.8 .0 6.2 17.5 899.5 377.7 41.6 16.2 8.9 13.9 25.8 31.1 36.0 71.9 53.7 22.2 8.9 9.8 21.1 1,186.1 4,480.8 194.1 104.4 151.3 201.2 278.0 471.0 361.4 1,155.1 353.3 222.9 159.4 87.0 337.0 .02 .01 .01 .01 .01 .01 .02 .02 .05 .02 .01 .01 .02 .02 .05 1 Agricultural and government employees are Included In the total employed and total working time: private household, forestry, and fishery employees are excluded. An explanation of the measurement of idleness as a percentage of the total time worked is found in ‘“ Total economy’ measure of strike idleness,” M onthly Labor Review, October 1968, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June May pp. 54-56. p = preliminary 97 MONTHLY LABOR REVIEW April 1988 • Current Labor Statistics: Price Data 30. Consumer Price Indexes for All Urban Consumers and for Urban Wage Earners and Clerical Workers: U.S. city average, by expenditure category and commodity or service group (1982-84=100, unless otherwise indicated) Series Annual average 1986 1987 All ite m s ..................................................................................................... All items (1 9 6 7 -1 0 0 ) .............................................................................. 109.6 328.4 113.6 340.4 Food and beverages ............................................................................ F o o d ...................................................................................................... Food at home ................................................................................... Cereals and bakery p ro d u c ts ...................................................... Meats, poultry, fish, and e g g s ..................................................... Dairy p ro d u cts................................................................................ Fruits and vegetables................................................................... Other foods at h o m e .................................................................... Sugar and s w e e ts ...................................................................... Fats and o ils ................................................................................ Nonalcoholic beverages............................................................ Other prepared fo o d s ................................................................ Food away from home ................................................................... Alcoholic beverages........................................................................... 109.1 109.0 107.3 110.9 104.5 103.3 109.4 109.4 109.0 106.5 110.4 109.2 112.5 113.5 113.5 111.9 114.8 110.5 105.9 119.1 110.5 Housing ................................................................................................... Shelter .................................................................................................. Renters’ costs (12 /8 2 —1 0 0 )........................................................ Rent, reside ntial............................................................................ Other renters’ costs ..................................................................... Homeowners’ costs (1 2 /8 2 —1 0 0 )................................................ Owners’ equivalent rent (1 2 /8 2 -1 0 0 ) ..................................... Household insurance (1 2 /8 2 —1 0 0 ).......................................... Maintenance and repairs................................................................ Maintenance and repair services ............................................... Maintenance and repair com m odities....................................... Fuel and other u tilitie s ....................................................................... Fuels .................................................................................................. Fuel oil, coal, and bottled g a s .................................................... Gas (piped) and electricity .......................................................... Other utilities and public s e rv ic e s ................................................. Household furnishings and ope ratio ns........................................... H ousefurnishings............................................................................. Housekeeping supp lie s................................................................... Housekeeping services................................................................... 110.9 115.8 121.9 118.3 118.6 119.4 119.4 119.2 107.9 114.2 121.3 128.1 123.1 127.4 124.8 124.8 124.0 111.2 114.8 107.8 103.0 97.3 77.9 103.8 1987 Feb. 1988 Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. 112.7 337.7 113.1 338.7 113.5 340.1 113.8 340.8 114.4 342.7 115.0 344.4 115.3 345.3 115.4 345.8 115.4 345.7 115.7 346.7 116.0 347.4 112.8 112.8 113.3 113.3 113.8 113.8 113.7 113.7 113.8 113.8 114.8 114.7 112.0 112.6 112.1 112.1 112.1 112.8 114.6 109.6 105.7 114.7 110.4 105.5 124.1 115.2 111.4 105.3 119.6 115.3 111.9 105.7 117.4 110.4 111.3 108.3 105.9 114.8 117.5 114.7 114.3 114.3 112.4 115.6 114.3 114.2 111.3 114.3 108.6 105.3 114.2 114.1 112.4 115.4 112.7 106.4 117.4 110.3 116.2 115.8 115.7 113.9 118.7 112.0 111.2 106.9 117.8 106.9 117.4 116.8 110.3 106.7 123.4 115.7 115.7 114.1 118.1 C O N S U M E R P R IC E IN D E X F O R A L L U R B A N C O N S U M E R S : Apparel and u p k e e p ............................................................................. Apparel com m o dities......................................................................... Men’s and boys’ a p p a re l................................................................ W omen's and girls’ apparel ........................................................... Infants’ and toddlers’ a p p a re l........................................................ F ootw ear............................................................................................ Other apparel com m odities............................................................ Apparel se rvice s.................................................................................. Transportation ........................................................................................ Private transportation......................................................................... New ve h icle s..................................................................................... New c a rs ......................................................................................... Used cars .......................................................................................... Motor fuel .......................................................................................... G a soline.......................................................................................... Maintenance and re p a ir.................................................................. Other private transportation........................................................... Other private transportation commodities ................................ Other private transportation se rvice s........................................ Public tran sportation.......................................................................... 111.1 103.7 104.1 99.2 77.6 105.7 117.9 105.2 102.2 108.2 108.5 111.0 108.1 107.5 113.8 117.0 114.1 111.8 120.1 107.1 103.6 111.5 112.5 112.5 112.5 112.5 110.9 113.4 108.9 105.4 117.4 111.2 113.3 108.8 105.9 118.3 111.3 110.3 107.4 111.3 112.9 115.5 112.8 112.4 119.0 125.8 121.7 122.8 122.5 122.5 122.0 110.2 112.5 107.2 101.4 95.3 77.9 101.5 119.1 106.5 103.3 110.1 109.8 110.6 106.2 104.3 106.1 103.9 108.9 108.9 109.1 110.4 111.8 112.1 101.9 101.7 115.1 105.1 108.0 119.6 102.3 105.4 104.2 114.4 114.6 113.1 80.2 80.1 114.8 108.8 77.1 77.0 110.3 115.1 96.3 118.8 117.0 112.1 335.9 110.6 105.9 104.2 106.2 104.0 101.2 110.6 110.6 111.6 334.4 110.8 110.7 109.0 109.8 112.6 115.9 112.9 110.7 108.0 108.5 113.3 116.1 113.3 112.8 113.2 119.6 126.4 127.1 120.2 121.8 122.0 125.0 123.0 123.0 127.1 123.6 123.6 122.4 110.3 122.2 110.7 113.4 107.1 101.5 95.2 77.5 101.5 119.3 106.8 103.6 110.9 109.9 105.5 118.1 109.7 108.1 108.0 109.6 114.3 104.5 106.1 118.6 103.1 103.3 101.8 120.1 110.6 112.8 107.2 101.3 94.7 77.5 110.5 110.8 110.2 111.2 110.0 111.1 108.5 108.0 113.4 116.4 113.6 107.8 106.8 113.7 116.8 114.0 108.4 105.9 114.1 117.2 114.4 114.3 114.7 121.3 129.3 123.0 132.8 124.4 124.4 124.5 113.2 116.8 108.4 105.0 100.4 77.1 107.6 120.5 107.2 103.6 111.7 113.6 120.5 127.3 122.3 127.1 124.0 124.1 123.0 127.9 122.3 129.1 124.2 124.2 123.6 110.2 111.1 112.3 107.5 113.7 107.8 104.9 102.2 111.1 96.1 77.1 102.5 119.8 107.1 103.5 111.7 110.3 110.6 111.5 111.1 100.8 119.7 107.2 104.0 120.8 100.8 77.2 108.1 119.4 107.1 103.5 111.9 110.5 110.8 120.8 121.2 107.3 103.8 111.5 110.9 107.5 103.9 107.4 103.6 112.3 111.2 111.2 115.4 114.0 115.4 114.0 112.5 117.7 116.7 108.0 110.7 114.1 105.8 105.9 118.6 113.1 106.5 105.8 119.3 105.6 107.6 119.5 104.7 103.5 113.8 114.0 113.4 79.1 79.0 114.3 119.7 96.7 124.2 105.4 104.3 114.1 114.3 114.7 80.8 80.7 114.4 120.3 96.7 125.0 96.3 125.7 120.6 120.2 120.2 106.5 105.4 114.0 114.4 115.5 84.3 84.3 115.1 120.7 96.8 125.5 121.5 129.2 129.9 129.0 127.9 130.1 129.9 130.8 129.6 128.8 130.6 130.7 131.6 130.4 129.5 132.0 101.8 102.0 96.9 125.6 113.5 113.5 106.9 76.0 75.9 113.3 118.9 96.4 123.4 113.1 113.1 108.7 76.6 76.4 113.3 119.1 96.7 123.5 121.1 120.6 121.1 130.1 131.0 130.0 128.8 131.6 127.4 127.4 127.4 125.8 128.6 128.1 128.5 128.0 126.6 129.1 128.7 129.0 128.7 127.5 129.7 120.8 115.5 123.2 129.4 124.8 127.7 127.1 127.2 125.8 121.1 109.5 109.9 120.0 115.6 122.5 129.8 124.4 130.5 126.0 126.0 125.5 112.7 116.3 107.8 105.5 110.2 111.4 108.0 105.0 115.1 118.6 115.4 77.6 108.2 111.2 106.0 104.9 114.4 114.7 115.4 82.2 82.1 114.5 110.6 111.6 107.4 106.7 114.7 118.3 115.2 116.4 108.1 103.2 96.9 78.5 103.3 130.1 123.8 133.3 125.4 125.4 125.1 112.9 116.5 108.2 105.9 101.4 77.8 108.7 109.2 110.1 111.6 107.8 105.8 114.6 118.0 114.9 115.5 123.4 129.2 124.8 126.7 127.4 127.5 125.9 113.5 116.9 108.9 102.4 95.5 80.3 101.4 121.3 107.4 103.6 112.4 112.8 110.0 107.3 105.3 107.8 104.2 107.7 103.4 108.2 115.4 122.2 109.3 107.6 109.0 107.6 104.2 103.0 113.5 113.6 111.3 78.5 78.4 114.3 119.4 96.0 124.0 120.9 120.8 121.8 109.4 107.6 108.3 108.4 109.0 104.2 109.3 119.8 101.0 111.8 111.0 113.3 111.8 110.6 115.3 112.1 112.8 112.0 118.3 116.2 107.3 110.7 105.7 110.3 119.9 120.8 106.6 105.4 113.8 114.1 116.0 84.0 84.0 115.7 107.1 106.0 115.0 115.2 116.2 83.2 83.1 116.1 121.1 122.8 111.0 110.6 107.4 126.4 111.3 107.3 124.7 110.0 111.0 112.2 111.8 112.2 107.7 104.8 115.0 118.9 115.4 108.5 106.9 115.9 119.3 115.8 109.5 107.7 116.1 119.7 116.8 115.6 123.7 129.1 125.6 124.1 128.0 128.0 126.2 113.3 116.6 109.1 116.2 124.6 130.8 126.0 129.4 128.5 128.6 126.9 113.7 117.4 108.7 102.4 95.6 80.8 101.5 121.3 107.5 103.5 113.1 111.5 116.6 125.0 131.3 126.3 130.4 129.0 129.0 127.1 114.3 117.9 109.5 102.0 95.1 80.5 100.9 120.9 107.3 103.3 112.5 111.4 112.7 111.0 110.7 112.6 110.4 108.6 109.0 108.2 113.6 106.1 112.9 102.8 96.0 80.9 101.9 121.8 107.7 103.7 113.2 111.6 110.2 108.3 109.1 107.8 111.4 105.8 113.1 121.1 114.5 107.2 111.3 121.4 121.6 122.0 107.6 106.5 116.4 116.6 116.3 82.0 81.8 116.9 123.8 97.5 129.2 107.1 106.0 116.1 116.2 116.0 79.7 79.5 117.2 124.7 98.2 130.1 106.8 105.7 116.0 116.2 116.0 78.3 78.1 117.7 125.0 98.1 130.6 97.6 125.8 98.0 127.8 107.8 106.8 116.3 116.6 116.5 83.2 83.1 116.5 123.8 97.6 129.2 122.1 121.2 122.0 122.1 121.8 120.8 131.2 132.2 131.0 130.0 133.0 131.7 132.7 131.5 130.7 133.3 132.3 133.5 132.0 131.2 134.2 132.8 134.2 132.5 131.5 135.4 133.1 134.9 132.7 131.8 135.9 134.4 135.4 134.1 133.2 137.6 135.5 136.1 135.3 134.5 139.0 115.6 117.4 Medical c a r e ........................................................................................... Medical care com m o dities................................................................ Medical care se rvice s........................................................................ Professional s e rv ic e s ...................................................................... Hospital and related services ........................................................ 123.1 E n tertainm ent......................................................................................... Entertainment co m m o dities.............................................................. Entertainment se rvice s ...................................................................... 107.9 116.8 115.3 110.5 113.5 108.8 113.9 109.6 114.5 109.9 114.8 110.3 110.6 112.2 112.6 120.1 121.0 121.2 122.0 122.5 116.1 110.7 123.5 111.2 120.0 114.9 110.3 121.4 115.4 110.7 122.0 124.5 124.3 124.3 118.1 112.9 125.4 118.3 112.9 125.7 Other goods and services ................................................................... Tobacco products .............................................................................. Personal c a re ....................................................................................... Toilet goods and personal care appliances................................ Personal care services ................................................................... Personal and educational expenses................................................ School books and s upp lie s............................................................ Personal and educational s e rv ic e s .............................................. 121.4 124.7 111.9 111.3 112.5 128.6 128.1 128.7 128.5 133.6 115.1 113.9 116.2 138.5 138.1 138.7 126.1 130.8 113.9 112.9 114.7 135.6 135.9 135.8 126.3 131.3 113.9 112.9 114.8 135.8 136.0 136.0 126.6 131.6 114.2 113.2 115.1 136.1 136.2 136.3 126.9 131.8 114.9 113.7 116.0 136.3 136.4 136.5 127.2 132.4 114.9 113.7 116.1 136.7 136.5 136.8 128.0 135.0 115.3 114.3 116.2 136.9 136.5 137.2 128.5 135.3 115.6 114.3 116.8 137.7 136.7 137.9 131.1 135.9 116.0 114.7 117.2 142.1 141.3 142.3 131.6 136.3 116.2 114.9 117.4 142.8 142.3 143.1 131.8 136.5 116.3 115.0 117.5 143.1 142.3 143.4 132.1 137.0 116.5 115.0 117.9 143.4 142.4 143.6 133.4 140.8 117.3 116.1 118.4 143.9 144.6 144.0 134.2 142.2 117.8 116.4 119.1 144.7 146.3 144.8 See footnotes at end of table. 98 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 122.0 122.8 121.9 120.8 111.6 116.9 117.3 30. Continued— Consumer Price Indexes for All Urban Consumers and for Urban Wage Earners and Clerical Workers: U.S. city average, by expenditure category and commodity or service group (1982-84=100, unless otherwise indicated) 1988 1987 Annual Series 1986 1987 All items ..................................................................................................... C om m odities........................................................................................... Food and beverages........................................................................... Commodities less food and beverages.......................................... Nondurables less food and beverages ....................................... Apparel com m odities.................................................................... Nondurables less food, beverages, and apparel .................... D urables............................................................................................. 109.6 104.4 109.1 101.4 97.8 104.2 95.9 106.6 113.6 107.7 113.5 104.0 S e rvices................................................................................................... Rent of shelter ( 1 2 / 8 2 - 1 0 0 ) ........................................................... Household services less rent of’ shelter ( 1 2 / 8 2 - 1 0 0 ) .............. Transportation s e rv ic e s ..................................................................... Medical care se rvice s........................................................................ Other services ..................................................................................... 115.4 120.2 120.2 112.8 125.9 113.1 121.9 130.0 125.7 Special indexes: All items less food .............................................................................. All items less shelter ......................................................................... All items less homeowners’ costs ( 1 2 /8 2 = 1 0 0 ).......................... All items less medical c a r e ............................................................... Commodities less fo o d ...................................................................... Nondurables less food ...................................................................... Nondurables less food and apparel ................................................ N ondurables......................................................................................... Services less rent o f shelter (12/82 = 1 0 0 ).................................. Services less medical c a r e ............................................................... E nergy................................................................................................... All items less e n e rg y ......................................................................... All items less food and energy ........................................................ Commodities less food and e n e rg y ................................................ Energy commodities .......................................................................... Services less ene rgy.......................................................................... Purchasing power of the consumer dollar: 1 9 8 2 -8 4 -$ 1 .0 0 ................................................................................... 1967 —$ 1 .0 0 ......................................................................................... 116.3 121.9 119.4 109.8 108.0 101.1 108.9 99.5 108.2 113.6 111.6 111.2 115.1 108.8 101.7 98.5 96.9 103.5 118.7 114.6 112.6 88.2 112.6 113.5 108.6 77.2 116.5 104.3 101.8 100.3 107.5 123.1 119.1 88.6 117.2 118.2 111.8 80.2 122.0 Feb. Mar. Apr. May 112.7 107.2 98.3 107.7 113.1 107.5 113.3 103.7 100.9 109.5 98.7 107.9 111.6 112.1 105.8 112.5 106.4 112.5 101.6 102.6 97.9 104.3 96.8 107.0 99.4 108.1 97.3 107.2 118.1 123.6 111.5 120.3 127.4 123.4 118.5 124.1 111.5 120.4 128.0 123.7 118.9 124.8 111.4 120.9 128.7 124.1 119.3 125.1 112.3 120.9 129.0 124.4 111.4 109.7 113.1 112.0 110.2 112.7 113.0 110.8 111.1 113.6 110.6 102.0 111.1 114.2 111.7 103.9 101.3 99.1 106.9 104.0 101.4 99.5 107.2 98.6 97.7 105.3 102.9 100.1 117.0 85.6 115.3 116.1 109.6 76.4 119.9 98.2 106.1 121.3 117.4 85.8 115.8 116.8 110.7 76.9 120.3 121.1 112.8 103.6 100.7 110.0 110.5 329.0 111.0 111.6 330.5 332.3 Food and be ve ra g e s............................................................................. F o o d ...................................................................................................... Food at home ................................................................................... Cereals and bakery p ro d u cts...................................................... Meats, poultry, fish, and e g g s ..................................................... Dairy p ro d u c ts ................................................................................ Fruits and vegetables................................................................... Other foods at h o m e .................................................................... Sugar and s w e e ts ...................................................................... Fats and o ils ................................................................................ Nonalcoholic beverages............................................................ Other prepared fo o d s ................................................................ Food away from home ................................................................... Alcoholic beverages........................................................................... 108.9 108.8 107.1 110.9 104.4 103.2 109.4 109.1 109.0 106.4 113.3 113.3 111.7 114.8 110.4 105.7 118.8 110.4 110.9 107.9 107.5 113.6 116.9 113.9 112.3 112.3 110.9 113.3 108.7 105.8 117.7 112.3 112.3 110.7 113.4 108.7 105.3 116.9 110.7 110.5 108.8 109.7 112.4 115.8 112.9 112.6 Housing ................................................................................................... S h e lte r.................................................................................................. Renters’ costs (12/84 = 1 0 0 )........................................................ Rent, reside ntial............................................................................ Other renters’ costs ..................................................................... Homeowners’ costs (12/84 = 1 0 0 )................................................ Owners’ equivalent rent ( 1 2 / 8 4 - 1 0 0 ) ..................................... Household insurance (1 2 /8 4 —1 0 0 ).......................................... Maintenance and re p a irs................................................................ Maintenance and repair s e rv ic e s ............................................... Maintenance and repair com m odities....................................... Fuel and other u tilitie s ....................................................................... Fuels .................................................................................................. Fuel oil, coal, and bottled g a s .................................................... Gas (piped) and electricity .......................................................... Other utilities and public s e rv ic e s ................................................. Household furnishings and ope ratio ns........................................... Housefurnishings.............................................................................. Housekeeping supp lie s................................................................... Housekeeping services................................................................... 109.7 113.5 109.5 118.2 119.1 108.8 108.8 109.4 107.7 110.5 103.1 103.9 99.2 77.8 105.7 117.7 105.0 101.9 108.5 109.1 112.8 111.0 118.8 114.6 122.9 128.2 113.8 113.7 114.1 111.3 114.7 106.0 102.7 97.1 77.6 103.6 116.6 112.7 121.5 122.4 Apparel and u p k e e p .............................................................................. 105.8 115.7 109.2 115.7 105.1 111.0 108.6 116.0 109.1 115.8 105.0 101.9 108.3 101.8 101.2 101.0 109.6 101.5 109.5 109.4 109.4 121.7 127.2 115.5 122.5 131.5 127.9 121.9 128.0 113.5 123.4 132.0 128.7 122.0 122.2 128.1 128.5 112.3 124.6 132.7 129.0 122.9 129.4 112.7 125.1 134.1 129.6 123.4 129.8 113.1 125.2 135.3 130.2 115.1 113.0 116.5 113.9 105.7 104.0 115.5 113.2 116.6 114.2 106.3 104.6 115.5 113.2 116.6 114.3 106.0 103.7 115.7 113.3 116.9 114.6 105.5 102.2 102.1 102.1 101.9 109.1 125.3 121.7 87.4 119.7 116.0 113.5 117.1 114.8 105.4 102.7 101.9 109.0 125.8 102.0 107.6 101.5 108.3 111.8 101.6 120.1 120.5 126.0 115.1 121.7 130.4 125.1 121.2 113.8 114.5 112.3 115.9 113.3 104.9 88.0 125.4 114.8 121.3 129.6 124.7 126.9 115.8 122.0 131.0 125.6 115.0 108.9 114.2 105.5 103.5 112.6 124.5 132.5 128.8 107.3 123.7 119.4 91.1 117.1 118.0 108.1 124.2 109.0 124.9 109.4 124.6 115.7 113.3 116.8 114.4 106.7 104.8 102.4 109.5 124.6 120.1 120.6 120.8 120.8 121.0 92.7 117.6 118.6 89.8 118.9 111.2 111.8 81.8 122.0 83.8 122.7 92.3 118.3 119.4 112.9 83.5 123.2 113.7 82.9 123.9 89.0 119.2 120.5 114.1 83.1 124.2 88.3 119.2 120.4 113.5 82.0 124.4 29.4 87.8 29.3 87.3 29.2 86.9 29.0 86.7 29.0 86.5 28.9 111.9 333.4 112.4 334.9 112.7 335.6 113.3 337.4 113.8 339.1 114.1 340.0 113.1 113.1 111.7 114.5 109.5 105.6 113.6 113.6 112.3 114.8 110.4 105.3 123.9 113.5 113.5 111.9 115.2 111.3 105.1 119.6 109.9 113.6 113.6 111.9 115.3 114.0 114.0 114.1 114.1 112.2 112.2 88.4 29.5 112.5 335.0 115.4 109.3 114.8 105.7 103.1 100.6 88.6 108.6 323.4 115.4 109.5 114.3 106.5 104.3 114.0 108.3 115.3 109.3 114.3 106.1 104.2 114.0 101.5 108.8 105.3 100.5 108.4 121.2 All items .................................................................................................. All items (1 9 6 7 -1 0 0 ) ........................................................................... CONSUMER Feb. 114.4 108.2 113.8 104.6 118.2 87.4 116.7 117.6 111.7 79.1 29.6 Jan. 113.8 107.6 113.7 103.8 122.1 89.1 29.8 Dec. 113.5 107.7 113.8 103.8 100.7 107.6 99.6 108.2 121.6 89.5 29.9 Nov. Aug. 117.8 86.4 116.4 117.4 111.5 78.5 120.9 29.4 Oct. Sept. July 113.5 111.7 115.1 112.5 104.1 101.4 100.3 107.4 123.2 119.0 90.7 116.9 117.7 111.4 80.6 121.4 91.3 30.5 88.0 June 114.6 112.1 111.8 115.3 112.7 104.1 101.3 101.1 102.6 102.0 120.1 109.1 124.6 102.1 102.8 122.1 87.0 120.8 120.0 121.1 113.2 80.0 125.2 113.3 78.8 125.7 86.4 28.8 86.2 28.9 114.3 340.4 114.2 340.2 114.5 341.0 114.7 341.6 114.1 114.0 111.9 116.2 114.5 114.5 112.5 116.9 115.4 115.4 113.7 118.1 115.5 115.4 113.5 118.8 110.5 107.0 124.0 111.7 86.6 28.8 P R IC E IN D E X F O R U R B A N W A G E E A R N E R S A N D C L E R IC A L W O R K E R S : 110.0 109.0 112.5 111.1 111.0 110.1 107.3 111.0 112.6 115.5 112.8 111.6 111.5 111.4 117.1 113.3 121.7 125.6 112.1 112.1 109.9 112.4 105.4 112.4 110.3 113.5 105.2 101.1 95.1 77.7 101.3 119.0 106.2 112.1 121.1 110.4 110.7 108.3 108.1 113.2 116.2 113.5 110.1 111.1 111.0 107.6 106.8 113.5 116.7 113.9 108.2 105.9 113.9 117.0 114.2 111.8 112.2 117.7 113.8 121.9 128.3 112.7 112.7 112.5 118.1 114.0 112.9 118.2 114.2 113.2 118.8 115.3 122.1 122.2 122.8 128.6 113.1 113.1 113.1 129.7 113.2 113.2 113.8 133.6 113.4 113.4 114.6 110.2 110.2 111.0 112.6 112.5 106.0 101.2 101.0 101.8 116.9 106.3 104.7 94.4 77.3 95.8 76.8 100.6 102.2 119.6 106.9 103.4 111.5 110.7 119.7 106.7 103.0 113.9 106.3 104.6 100.7 77.0 108.0 119.4 106.7 102.9 112.0 112.1 110.9 110.9 112.1 111.1 111.4 110.9 109.1 107.1 111.8 102.8 110.6 110.9 110.3 110.4 106.0 109.5 106.7 103.1 114.3 108.5 105.1 119.5 110.4 110.5 107.9 108.4 113.1 116.0 113.2 113.2 105.2 95.0 77.3 101.3 119.3 106.5 103.1 111.3 110.4 120.1 112.5 111.0 100.2 76.9 107.4 120.4 106.8 103.1 111.8 105.5 117.3 110.3 111.3 108.1 106.0 114.6 117.4 114.4 114.0 119.6 116.0 123.6 134.2 114.3 114.3 115.1 112.4 116.6 106.2 105.6 101.3 77.5 108.6 121.0 106.9 103.3 111.9 115.4 112.7 106.2 117.1 110.2 111.5 107.6 106.0 114.4 117.9 114.6 114.1 115.7 112.0 111.2 110.1 110.8 106.7 117.5 110.5 106.7 117.4 106.4 123.0 109.8 110.9 107.6 104.9 114.8 118.8 115.1 107.1 125.7 111.3 112.1 112.1 108.4 107.2 115.7 119.1 115.6 109.5 107.9 115.8 119.6 116.6 114.1 114.6 121.9 116.9 125.7 129.2 117.1 117.1 116.7 113.0 117.1 106.9 95.2 80.4 115.0 122.4 117.3 126.1 130.0 117.6 117.6 116.7 113.6 117.6 107.5 102.5 95.6 80.6 101.2 121.2 101.6 121.8 107.2 103.1 113.6 110.0 111.6 110.1 111.2 107.3 106.9 114.5 118.2 114.9 107.9 105.2 114.9 118.5 115.2 114.0 120.7 116.0 124.5 129.3 115.9 115.9 115.8 112.1 112.2 116.4 105.8 105.2 116.0 106.3 113.9 120.9 115.9 124.6 128.1 116.2 116.2 115.9 112.7 116.5 106.9 102.8 102.0 100.8 96.5 78.2 103.0 95.1 80.1 120.0 116.2 124.2 132.2 114.8 114.8 115.5 77.3 108.1 120.7 107.1 103.4 121.1 111.2 111.3 107.0 103.1 112.7 111.4 109.1 112.9 115.2 112.2 121.2 112.8 115.9 125.3 124.5 116.6 116.6 116.1 112.5 115.9 107.1 101.7 94.8 80.2 100.7 120.9 106.9 102.9 112.9 111.4 111.6 107.1 103.0 113.5 111.7 115.2 112.6 110.3 101.1 121.2 107.0 103.1 102.0 111.8 See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 99 MONTHLY LABOR REVIEW April 1988 • Current Labor Statistics: Price Data 30. Continued— Consumer Price indexes for All Urban Consumers and for Urban Wage Earners and Clerical Workers: U.S. city average, by expenditure category and commodity or service group (1982-84=100, unless otherwise indicated) Series Apparel com m o dities......................................................................... Men’s and boys’ a p p a re l................................................................ Women's and girls' apparel ........................................................... Infants’ and toddlers' a p p a re l........................................................ F oo tw ear............................................................................................ Other apparel com m odities............................................................ Apparel se rvice s................................................................................. Transportation ........................................................................................ Private transportation......................................................................... New ve h icle s .................................................................................... New c a rs ......................................................................................... Used cars .......................................................................................... Motor fuel .......................................................................................... G a soline.......................................................................................... Maintenance and re p a ir.................................................................. Other private tran sportation........................................................... Other private transportation com m o dities................................ Other private transportation services........................................ Public tran sportation.......................................................................... Annual average 1987 1986 1987 Feb. Mar. Apr. May June July Aug. 104.2 105.9 103.8 113.5 108.8 108.5 110.3 114.0 105.5 107.4 119.2 104.2 105.4 103.7 107.9 107.0 109.4 116.2 105.0 105.6 118.4 109.9 108.3 113.0 115.9 106.1 105.5 118.4 109.4 109.0 111.4 115.3 106.7 105.1 118.9 107.4 108.2 107.7 111.7 105.8 107.0 119.1 105.3 106.9 104.4 109.7 103.9 107.3 119.5 107.4 107.7 108.2 104.7 108.2 119.3 105.1 104.1 114.0 114.3 113.1 80.3 80.2 115.1 119.0 96.7 123.4 120.4 102.5 101.5 113.2 113.2 106.9 76.1 76.0 113.7 117.3 96.4 121.3 119.8 102.8 101.8 103.8 112.9 113.2 113.3 111.3 78.5 78.5 114.6 117.5 95.7 104.4 103.4 113.5 113.7 113.4 79.2 79.1 114.6 117.8 96.4 105.1 104.3 113.7 114.0 114.7 80.9 80.8 114.7 118.5 96.6 121.8 122.0 122.8 120.2 120.3 120.3 130.2 130.2 130.3 129.0 131.1 127.3 126.8 127.4 125.8 128.1 128.1 127.7 128.1 126.7 128.5 128.8 128.2 128.9 127.6 129.1 129.3 129.1 129.3 128.1 129.5 110.0 120.8 114.4 110.5 114.5 110.5 115.0 110.9 121.1 121.2 121.8 125.9 131.7 114.1 113.1 115.0 135.9 136.2 136.1 126.2 131.8 114.7 113.6 115.9 136.1 136.3 136.3 126.6 132.5 114.8 113.6 116.0 136.4 136.4 136.7 102.1 101.6 115.0 101.7 100.9 110.4 110.4 108.8 77.1 76.9 110.6 113.8 96.3 117.1 116.8 111.0 102.4 104.6 118.0 112.8 108.7 76.6 76.5 113.7 117.4 96.5 121.4 102.8 Medical c a r e ........................................................................................... Medical care com m o dities................................................................ Medical care se rvice s........................................................................ Professional s e rv ic e s ...................................................................... Hospital and related services ........................................................ 122.6 E n tertainm ent......................................................................................... Entertainment commodities .............................................................. Entertainment se rvice s...................................................................... 111.0 114.8 107.8 116.5 110.6 121.8 113.0 109.0 119.7 113.4 109.6 119.8 120.9 124.8 111.9 127.8 133.7 115.0 113.9 116.1 138.2 137.9 138.4 125.4 131.0 113.9 113.0 114.8 135.3 135.9 135.5 125.6 131.4 113.8 114.8 135.5 136.0 135.7 112.5 107.3 113.3 103.6 110.5 105.3 112.3 111.0 111.6 105.9 112.3 112.6 101.0 102.0 103.0 100.8 97.4 104.2 96.4 105.1 98.9 107.9 96.8 105.4 109.9 97.9 106.0 111.9 107.0 113.1 103.3 100.4 109.4 98.4 106.4 117.3 111.9 102.5 119.1 127.4 122.5 117.7 112.5 102.5 119.2 128.1 122.7 118.1 113.0 102.4 119.7 128.9 123.2 118.5 113.4 103.2 119.8 129.3 123.5 Other goods and services ................................................................... Tobacco products .............................................................................. Personal c a re ....................................................................................... Toilet goods and personal care appliances................................ Personal care s e rv ic e s ................................................................... Personal and educational expenses............................................... School books and supp lie s.......................................................... Personal and educational s e rv ic e s .............................................. All ite m s ................................................................................... Com m odities...................................................... Food and beverages ..................................................................... Commodities less food and beverages.......................................... Nondurables less food and beverages ....................................... Apparel com m odities....................................................... Nondurables less food, beverages, and apparel ................ Durables............................................................................. S e rvices........................................................................ Rent of shelter (1 2 /8 4 —1 0 0 )................................................... Household services less rent of shelter (12/84 = 1 0 0 )............... Transportation se rvice s ..................................................... Medical care se rvice s.......................................................... Other services ...................................................... 122.0 122.2 122.0 120.9 111.2 112.6 128.5 127.8 128.6 108.6 103.9 108.9 100.8 97.3 104.2 95.3 104.9 108.8 99.2 106.6 114.7 109.0 103.9 115.4 119.4 114.0 104.0 122.0 118.7 130.3 124.7 108.5 107.4 112.2 111.0 102.8 106.4 111.5 103.9 101.4 Special indexes: All items less food ...................................................... All items less s h e lte r........................................................... All items less homeowners’ costs ( 1 2 /8 4 - 1 0 0 ) ........................ All items less medical c a r e .................................................... Commodities less fo o d ................................................................ Nondurables less food ................................................................. Nondurables less food and apparel ................................................ N ondurables..................................................................... Services less rent of shelter ( 1 2 /8 4 = 1 0 0 ) ................................... Services less medical c a r e ............................................................... E nergy.............................................................................................. All items less energy .................................................................. All items less food and energy ........................................................ Commodities less food and e n e rg y ................................................. Energy commodities .......................................................................... Services less ene rgy.......................................................................... 98.0 96.4 103.3 107.1 113.9 87.4 111.5 112.3 107.6 77.2 115.8 Purchasing power of the consumer dollar: 1 9 8 2 -8 4 = $ 1 .0 0 ................................................................................... 1967 —$ 1 .0 0 ................................................................................... 92.0 30.9 Digitized for 100 FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1988 107.8 101.2 120.8 112.8 114.0 106.7 100.2 110.0 110.6 111.3 111.6 109.5 104.9 110.1 105.5 110.5 105.9 110.0 110.6 102.3 99.6 97.8 105.8 109.2 116.5 85.1 114.7 115.3 109.6 76.9 119.6 103.3 103.6 100.8 101.0 98.7 106.6 109.5 116.9 85.8 115.3 116.0 110.5 78.6 99.2 106.9 109.9 117.4 121.2 109.0 104.5 109.5 101.4 98.2 97.4 105.1 109.0 116.2 84.9 114.1 114.7 108.5 76.5 119.1 89.0 29.9 90.5 30.4 90.1 30.3 100.0 107.2 110.8 118.2 88.0 116.0 116.8 110.8 80.3 Oct. Nov. 111.5 109.8 115.2 113.9 106.0 109.8 119.4 113.9 111.5 118.2 118.6 107.9 110.4 120.3 112.0 110.4 117.6 118.7 108.6 110.5 120.7 112.6 106.3 106.4 105.5 105.5 113.5 113.3 114.0 113.8 115.5 115.9 84.5 84.1 84.4 84.1 115.4 k 11.6.0 118.7 119.1 96.7 97.3 123.1 123.4 120.8 121.4 106.9 106.1 114.5 114.9 116.1 83.3 83.2 116.3 107.6 106.7 115.9 116.2 116.4 83.3 83.2 116.7 107.3 106.4 116.1 116.3 116.2 82.0 81.9 117.0 121.0 122.0 122.0 97.7 125.8 120.7 97.2 127.1 119.7 105.8 104.9 113.9 114.4 115.4 82.3 82.2 114.9 118.9 96.3 123.4 119.7 121.2 97.4 127.1 121.3 130.0 130.1 130.0 128.9 130.0 130.8 130.9 130.8 129.6 131.4 131.4 131.3 131.4 130.2 132.4 132.0 131.9 132.0 130.9 132.8 132.6 132.6 132.6 131.4 133.7 133.0 133.4 133.0 131.7 134.9 133.4 134.1 133.2 132.0 135.4 115.1 110.8 122.2 115.6 110.9 123.2 116.3 111.3 124.3 112.2 112.6 112.8 124.1 124.0 127.5 135.1 115.1 114.1 116.2 136.7 136.4 137.0 128.0 135.4 115.4 114.3 116.7 137.4 136.6 137.7 130.3 136.0 115.8 114.6 117.1 141.8 140.7 142.1 130.8 136.5 116.1 115.0 117.3 142.4 141.8 142.7 131.0 136.7 116.2 115.0 117.4 142.8 141.8 143.1 112.4 107.3 113.6 103.4 100.4 107.4 99.3 106.6 112.7 107.3 113.5 103.5 100.4 105.3 100.3 106.9 113.3 107.9 113.6 104.3 113.8 108.5 114.0 105.1 103.1 111.5 101.5 106.9 114.1 108.9 114.1 105.7 103.8 113.9 101.3 107.4 114.3 109.1 114.1 106.0 104.0 113.9 119.3 113.5 105.7 119.7 114.0 105.9 120.2 120.6 130.0 123.7 130.8 124.1 112.4 110.6 101.8 107.4 101.4 106.8 120.4 114.9 106.6 120.7 131.4 124.6 113.1 112.1 111.1 111.2 111.8 106.4 111.5 103.7 106.6 111.7 103.8 101.0 100.0 101.1 101.0 107.2 120.1 115.6 116.3 110.7 79.2 120.4 118.1 90.1 115.7 116.3 110.5 80.7 107.2 111.5 118.5 90.5 115.9 116.6 110.3 82.0 107.1 112.3 104.6 102.4 101.9 107.9 120.6 121.1 121.8 89.6 30.1 89.3 30.0 88.9 29.9 88.7 29.8 29.6 111.0 86.8 Sept. 111.1 120.9 115.2 106.3 121.2 132.0 126.9 113.7 112.4 107.7 112.9 105.4 103.6 102.0 119.2 92.2 116.4 117.2 108.8 112.5 119.7 91.8 117.1 117.9 110.8 111.8 84.1 112.0 88.2 113.9 116.7 Dec. Jan. Feb. 111.1 108.6 108.6 108.2 115.2 106.8 108.3 108.7 107.9 113.3 106.4 112.2 121.1 112.0 106.8 105.9 115.8 115.9 115.9 79.7 79.5 117.4 122.9 98.1 128.0 116.4 108.0 110.6 120.9 121.2 106.4 105.6 115.7 116.0 116.0 78.3 78.1 117.8 123.2 98.0 128.5 120.4 134.6 134.7 134.6 133.4 136.9 135.8 135.4 135.8 134.7 138.4 117.4 124.9 117.6 112.9 125.2 131.3 137.2 116.4 115.1 117.8 143.0 141.9 143.3 132.7 141.0 117.1 116.0 118.3 143.4 143.9 143.6 133.6 142.3 117.5 116.2 118.9 144.3 145.3 144.5 114.2 108.9 114.5 105.4 114.5 108.8 115.4 104.7 101.7 108.6 114.7 108.7 115.5 104.5 101.4 108.3 100.5 107.9 116.9 101.6 102.8 111.1 101.2 100.8 108.0 108.0 107.9 117.1 103.5 124.1 134.6 128.5 121.1 121.2 115.9 104.2 122.5 132.6 127.7 116.1 103.4 123.5 133.0 127.8 121.3 116.4 103.1 123.6 133.2 127.9 114.0 114.3 112.7 108.0 113.3 106.3 104.4 114.1 112.5 107.8 113.2 105.6 103.3 112.6 107.8 113.1 105.9 104.2 101.9 109.2 121.5 122.0 122.5 117.5 103.9 124.4 135.8 129.0 102.2 101.8 109.2 108.8 114.2 112.7 108.0 113.4 105.0 102.4 101.5 108.8 112.2 120.1 120.7 121.1 86.8 118.5 119.3 112.3 80.0 124.3 86.3 118.7 119.6 112.4 78.7 124.8 87.3 29.3 87.2 29.3 112.2 112.2 119.9 83.8 122.4 119.9 89.3 117.7 118.7 112.7 83.0 123.1 118.0 119.1 113.1 83.2 123.4 87.8 29.5 87.6 29.4 87.4 29.4 88.6 87.8 118.0 119.0 112.6 82.1 123.7 87.5 29.41 112.8 114.4 112.8 108.1 113.6 104.9 102.2 101.4 108.7 113.2 31. Consumer Price Index: U.S. city average and available local area data: ail items (1 9 8 2 -8 4 = 1 0 0 , u nless o th e rw ise indicated) Urban Wage Earners All Urban Consumers Area 1 U.S. city a verage..................... R egion and area size 3 Northeast u rb a n ........................ Size A - More than 1 ,200 ,00 0 ................................ Size B - 500,000 to 1 ,200 ,00 0 ................................ Size C - 50,000 to 500,000 ................................... North Central urban ................ Size A - More than 1 ,2 00,000 ................................ Size B - 360,000 to 1 ,200 ,00 0 ................................ Size C - 50,000 to 360,000 ................................... Size D - Nonmetro politan (less than 50,0000 .......................... South u rb a n ............................... Size A - More than 1 ,200 ,00 0 ................................ Size B - 450,000 to 1 ,200 ,00 0 ................................ Size C - 50,000 to 450,000 ................................... Size D - Nonmetro politan (less than 50,000) ........................... West u rb a n ................................ Size A - More than 1,250,000 ................................ Size B - 330,000 to 1,250,000 ................................ Size C - 50,000 to 330,000 ................................... Size classes: A ............................................... B ............................................... C .............................................. D .............................................. Pricing sche dule 2 M M Other index base - 1988 1987 1988 1987 Feb. Mar. Oct. Nov. Dec. Jan. Feb. Feb. Mar. Oct. Nov. Dec. Jan. Feb. 111.6 112.1 115.3 115.4 115.4 115.7 116.0 110.5 111.0 114.1 114.3 114.2 114.5 114.7 113.6 114.2 118.1 118.3 118.3 118.9 119.2 112.7 113.3 117.1 117.4 117.4 117.9 118.1 M - 114.4 114.9 119.2 119.3 119.4 120.0 119.9 112.7 113.2 117.6 117.7 117.8 118.1 118.0 M - 111.3 112.4 115.4 116.1 115.6 116.2 117.0 110.4 111.4 114.3 115.0 114.5 115.1 116.0 M M - 112.9 109.7 113.7 110.3 115.9 113.5 116.0 113.5 116.2 113.3 117.1 113.4 117.2 113.7 115.3 107.8 116.1 108.4 118.6 111.6 118.6 111.7 118.8 111.4 119.6 111.5 119.8 “ M - 110.5 111.0 114.2 114.4 113.9 114.1 114.7 108.0 108.5 111.7 111.8 111.4 111.6 112.1 M - 109.6 110.0 113.0 113.0 113.0 113.3 113.5 107.2 107.5 110.7 110.7 110.7 110.9 111.1 M - 109.0 110.1 113.9 113.9 113.6 113.4 113.4 108.1 109.1 112.8 112.8 112.6 112.4 112.3 M M 107.9 110.7 108.5 110.5 114.1 110.9 114.0 110.1 108.0 110.5 110.4 113.4 110.5 113.6 110.7 113.5 110.4 113.6 110.2 114.1 110.5 114.4 107.5 111.1 110.5 113.8 110.6 “ M - 111.2 111.8 114.8 115.2 114.9 114.9 115.2 110.3 110.9 114.1 114.4 114.2 114.1 114.4 M - 111.3 111.7 114.4 114.5 114.5 114.8 115.1 109.5 109.9 112.6 112.7 112.7 112.9 113.0 M - 110.3 110.5 112.8 113.1 112.8 113.3 113.4 110.6 110.8 113.3 113.5 113.3 113.6 113.8 109.2 109.5 113.0 112.2 112.6 112.6 112.8 115.9 116.0 116.2 116.7 112.7 116.9 109.9 111.5 110.2 112.6 111.9 113.0 114.8 113.4 114.8 113.3 115.0 113.5 115.5 113.4 115.6 117.1 117.0 117.2 117.9 118.2 111.3 111.8 114.6 114.5 114.8 115.3 115.6 M M 111.8 113.8 M - 113.6 114.1 M - 111.0 111.5 115.0 114.8 115.0 115.8 115.6 111.2 111.7 115.2 115.0 115.2 116.0 115.7 112.7 112.9 115.1 115.9 116.0 116.0 115.9 112.0 112.3 114.5 115.3 115.4 115.3 115.3 12/86 101.1 101.6 110.9 110.9 109.4 111.5 111.4 109.7 104.6 114.4 114.1 112.3 104.8 114.6 114.3 105.0 115.0 114.5 112.9 105.3 115.2 114.6 113.1 100.6 110.1 109.6 111.7 109.9 104.7 113.1 114.4 112.6 104.7 114.5 114.2 112.7 100.1 - 112.6 104.8 113.3 114.7 113.0 104.7 113.2 114.6 113.1 105.0 113.6 114.8 113.2 105.2 113.8 114.9 113.4 112.9 M M M M M 109.6 111.1 S e le c t e d lo c a l a r e a s Chicago, ILNorthwestern IN ...................... Los Angeles-Long Beach, Anaheim, C A ............ New York, NYNortheastern N J ...................... Philadelphia, P A -N J.................. San FranciscoOakland, C A ............................. M 111.9 112.3 115.1 115.7 115.7 115.3 116.6 108.6 109.0 111.7 112.2 112.2 111.9 M 114.7 115.5 118.6 118.2 118.5 118.9 119.7 112.1 112.8 115.8 115.4 115.7 115.9 116.6 119.6 119.3 119.3 119.0 M M M Baltimore, M D ........................... Boston, MA ............................... Cleveland, O H ........................... Miami, F L ................................... St. Louis, M O -IL ........................ Washington, DC-MD-VA ......... 1 1 1 1 1 1 Dallas-Ft. Worth, T X ................ Detroit, M l .................................. Houston, TX .............................. Pittsburgh, PA ........................... 2 2 2 2 - 115.3 113.9 115.8 114.0 119.1 120.5 118.6 118.9 121.3 119.3 119.3 113.8 113.6 114.4 113.8 118.8 119.0 119.1 118.6 119.1 119.0 113.7 117.1 117.3 117.4 118.4 117.9 112.4 112.8 116.0 116.2 116.4 117.5 117.0 _ 116.8 _ - - 111.8 - - - - 113.6 - 116.2 110.2 115.3 119.9 109.9 113.1 112.7 117.9 114.0 113.7 108.0 113.3 110.6 _ - - 113.8 109.8 107.4 108.6 - 113.4 _ _ - - - - 112.3 115.9 111.4 110.7 110.7 114.5 _ 110.9 _ - 110.2 - - 104.4 109.8 - - 120.2 _ 114.9 114.1 108.0 115.7 119.9 114.5 113.8 113.1 118.5 - 113.9 114.5 113.4 118.3 _ 113.9 - - 112.6 - - 107.3 113.0 - 112.8 1 A re a is th e C onso lid a ted M e tro po lita n S ta tistica l A re a (C M SA), e xclu sive o f farm s and military. A re a d e fin itio n s a re th o se e sta b lish ed by th e O f fice o f M a n ag em en t a nd B ud g et in 1983, e xce p t fo r B osto n-La w re n ce-S a lem, M A -N H A rea (e xclu de s M o n roe County); and M ilw aukee, W l A re a (in clu de s o nly th e M ilw a uke e MSA). D e finition s do n ot inclu de revisions m ade sin ce 1983. 2 Foods, fuels, and several o th e r ite m s priced every m o n th in all areas; m o st o th e r g oo d s and se rvice s priced as indicated:. M - Every m onth. 1 - January, M arch, May, July, S ep tem be r, and N ovem ber. 2 - February, A pril, June, A ugust, O ctob er, and D ecem ber. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 120.6 120.1 121.1 107.5 104.3 105.7 115.8 106.7 109.9 ~ - 114.7 111.3 108.1 108.3 ~ 120.2 109.3 113.8 113.0 117.6 - - " 113.8 110.9 108.1 108.9 3 R egions are d efin ed as the fo u r C e nsus regions. - D ata n ot available. NO TE: Local area CPI in dexes are byprod ucts o f the natio na l CPI pro gram . B ecause e ach lo cal index is a sm all su bse t of th e national index, it h as a sm a lle r sam ple size and is, th e re fore, su bje ct to substa ntia lly m ore sam pling and o th e r m ea sure m e n t e rro r tha n th e national in dex. A s a result, lo cal area indexes sh ow g re ate r v o la tility tha n th e national index, although th e ir long-term tre nd s are quite sim ilar. Th erefo re , th e Bureau o f Labor S ta tistics stro ng ly urges users to co nsid e r ado ptin g th e national average CPI fo r use in e sca la to r clauses. I MONTHLY LABOR REVIEW April 1988 • Current Labor Statistics: Price Data 32. Annual data: Consumer Price Index, U.S. city average, all items and major groups (1982-84=100) Series Consumer Price Index for All Urban Consumers: All items: In d e x ...................................................................... Percent ch a n g e .... ............................................................... Food and beverages: In d e x ..................................................................... Percent ch a n g e .................................................................... Housing: In d e x ....................................................................................... Percent c h a n g e .................................................................... Apparel and upkeep: In d e x .................................................................................. Percent ch a n g e .................................................................... Transportation: In d e x ....................................................................................... Percent ch a n g e .................................................................... Medical care: In d e x ....................................................................................... Percent ch a n g e .................................................................... Entertainment: In d e x ....................................................................................... Percent ch a n g e .................................................................... Other goods and services: In d e x ....................................................................................... Percent ch a n g e .................................................................... Consumer Price Index for Urban Wage Earners and Clerical Workers: All Items: In d e x ....................................................................................... Percent ch a n g e .................................................................... 102 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1979 1980 1981 1982 1983 1984 1985 1986 1987 72.6 11.3 82.4 13.5 90.9 10.3 96.5 6.2 99.6 3.2 103.9 4.3 107.6 3.6 109.6 1.9 113.6 3.6 79.9 10.7 86.7 8.5 93.5 7.8 97.3 4.1 99.5 2.3 103.2 3.7 105.6 2.3 109.1 3.3 113.5 4.0 70.1 12.3 81.1 15.7 90.4 11.5 96.9 7.2 99.5 2.7 103.6 4.1 107.7 4.0 110.9 3.0 114.2 3.0 84.9 4.3 90.9 7.1 95.3 4.8 97.8 100.2 102.1 105.0 2.5 1.9 2.8 105.9 .9 110.6 2.6 70.5 14.3 83.1 17.9 93.2 97.0 4.1 99.3 2.4 103.7 4.4 106.4 102.3 -3.9 105.4 3.0 67.5 9.2 74.9 92.5 100.6 8.8 106.8 130.1 6.2 113.5 6.3 122.0 11.0 82.9 10.7 7.5 6.6 76.7 6.7 83.6 9.0 90.1 7.8 96.0 6.5 100.1 103.8 3.7 107.9 3.9 111.6 4.3 115.3 3.3 68.9 7.2 75.2 9.1 82.6 9.8 91.1 10.3 101.1 11.0 107.9 6.7 114.5 121.4 6.1 6.0 73.1 11.4 82.9 13.4 91.4 10.3 96.9 99.8 3.0 103.3 3.5 106.9 3.5 108.6 12.2 11.6 6.0 2.6 3.4 1.6 4.4 128.5 5.8 112.5 3.6 33. Producer Price Indexes, by stage of processing (1982 = 100) 1988 1987 Annual average G r o u p in g 1986 F in is h e d g o o d s ............................................................... Finished consumer goods ........................... Finished consumer fo o d s .......................... Finished consumer goods excluding foods ........................................................... Nondurable goods less food ................ Durable goods ......................................... Capital equ ipm ent......................................... 103.2 101.4 107.3 1987 105.4 103.6 109.5 Mar. 104.3 102.3 108.1 Apr. 105.1 103.2 109.2 May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. 106.2 104.4 109.7 106.2 104.5 109.9 105.7 103.9 108.8 106.2 104.3 110.6 105.9 104.0 109.4 101.8 101.4 95.6 112.4 101.3 95.3 112.5 112.7 101.3 95.4 112.5 112.9 103.5 103.7 104.2 104.1 108.2 99.8 105.4 112.9 109.8 109.3 109.5 101.9 107.6 113.9 110.7 110.6 106.0 104.4 110.9 105.9 104.3 109.5 105.7 104.2 110.5 100.6 101.2 101.8 101.1 94.8 96.1 110.0 111.2 101.9 95.8 113.4 112.5 102.7 103.1 105.4 103.7 105.5 103.9 110.6 100.3 94.4 98.5 93.3 108.9 109.7 100.7 94.8 111.5 111.7 99.5 93.6 110.5 100.3 94.3 111.4 111.2 111.1 111.6 111.2 111.6 95.7 111.3 111.4 111.6 96.6 110.9 111.7 99.1 101.5 99.6 100.2 100.9 101.5 102.1 102.5 95.8 112.9 112.5 112.2 In t e r m e d ia t e m a te r ia ls , s u p p lie s , a n d c o m p o n e n t s ...................................................................... Materials and components for manufacturing .............................................. Materials for food m anufacturing............ Materials for nondurable manufacturing . Materials for durable m anufacturing....... Components for m anufacturing............... Materials and components for construction................................................... Processed fuels and lu bricants................... Containers....................................................... Supplies........................................................... C r u d e m a t e r i a l s f o r f u r t h e r p r o c e s s i n g ... Foodstuffs and feedstuffs .......................... Crude nonfood m ate rials............................ 107.5 103.4 98.2 99.8 102.5 108.4 100.9 103.3 108.4 104.6 102.7 101.3 104.5 108.5 105.1 102.3 102.5 104.9 108.5 105.5 102.7 102.3 106.2 108.8 109.3 107.6 100.3 105.2 110.9 109.6 108.1 72.7 110.3 105.6 109.8 73.3 114.5 107.7 108.5 70.3 113.8 106.4 108.7 71.2 114.0 106.7 108.9 72.5 114.0 107.3 109.3 74.5 114.2 107.6 109.8 76.0 114.2 107.8 110.2 111.2 111.8 77.3 114.4 107.8 110.7 75.9 115.4 108.2 74.6 116.1 108.8 74.9 116.3 109.4 112.5 73.3 116.1 113.5 71.2 116.7 110.1 110.6 113.7 70.2 116.9 110.5 87.7 93.2 81.6 93.7 96.2 87.9 90.3 92.7 84.8 92.4 96.9 85.5 94.8 101.6 95.1 99.7 86.4 88.0 96.0 98.4 90.3 96.5 97.1 91.8 95.7 96.6 90.8 95.3 96.1 90.5 94.6 95.2 90.0 94.3 95.8 89.1 93.4 96.9 87.1 94.6 99.6 87.3 101.9 63.0 109.7 109.7 103.0 60.2 111.3 111.3 112.5 103.7 61.7 103.7 61.6 112.4 110.6 104.0 61.8 112.3 112.5 113.3 104.3 63.4 112.7 113.1 113.3 104.7 64.9 112.3 104.2 63.4 112.4 112.6 112.8 113.0 103.9 62.5 112.3 112.7 112.9 113.4 113.1 105.1 62.4 113.1 113.4 114.5 105.0 62.4 113.2 113.4 114.4 104.7 60.9 112.9 113.1 114.5 104.7 59.0 113.8 114.2 115.0 104.8 58.4 113.6 113.9 115.3 112.9 111.1 114.2 113.2 113.7 113.7 113.7 114.2 114.3 114.1 115.6 115.5 115.6 116.3 116.7 113.1 116.3 115.3 115.5 115.6 115.7 116.5 116.9 117.3 117.4 117.5 118.3 119.2 119.8 99.3 96.2 72.6 104.5 101.7 99.2 73.1 107.3 99.9 95.1 70.1 105.6 100.4 96.9 71.0 106.1 100.9 100.4 72.2 106.7 101.6 102.2 102.8 101.0 103.7 100.7 75.7 107.4 102.7 99.6 77.0 107.7 103.2 100.7 74.1 107.1 100.6 101.1 75.6 108.3 74.4 109.1 74.6 109.4 103.8 101.9 73.0 104.2 101.7 70.0 110.0 104.2 103.1 70.9 110.9 104.9 107.8 106.2 106.6 107.0 107.5 107.9 108.2 108.7 109.6 110.1 110.7 111.7 • 111.9 71.8 95.4 103.1 75.0 73.6 95.9 106.8 74.1 99.4 108.1 74.5 103.5 110.5 75.6 77.8 102.4 115.7 78.9 102.3 118.7 76.7 103.0 122.9 75.4 103.6 126.4 74.6 103.0 126.7 73.5 103.5 127.0 70.7 104.8 128.6 70.5 107.2 130.6 102.2 98.4 98.1 101.2 105.3 100.8 104.0 100.1 102.6 106.2 108.7 105.8 101.5 102.9 107.1 108.8 106.3 102.8 103.4 108.1 109.0 107.2 101.9 104.5 110.2 102.0 107.0 114.4 110.3 S p e c ia l g r o u p in g s Finished goods, excluding fo o d s ................... Finished energy goods ................................... Finished goods less e n e rg y ........................... Finished consumer goods less e n e rg y ........ Finished goods less food and energy ......... Finished consumer goods less food and e n e rg y ............................................................... Consumer nondurable goods less food and e n e rg y ............................................................... Intermediate materials less foods and fe e d s ................................................................. Intermediate foods and fe e d s ........................ Intermediate energy goods ............................ Intermediate goods less e n e rg y ................... Intermediate materials less foods and e n e rg y ............................................................... Crude energy m aterials................................... Crude materials less energy .......................... Crude nonfood materials less e n e rg y.......... https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 100.8 115.6 112.0 112.1 112.6 102.8 113.5 111.1 103 MONTHLY LABOR REVIEW April 1988 • Current Labor Statistics: Price Data 34. Producer Price indexes, by durability of product (1982 = 100) Annual average 1987 1988 G r o u p in g 1986 1987 Mar. Apr. May July Aug. Total durable g o o d s ........................................ Total nondurable g o o d s .................................. 107.5 94.8 109.9 97.5 108.7 95.5 109.1 96.5 109.2 97.6 109.3 98.2 109.7 98.8 110.0 110.2 99.0 Total m anufactures.......................................... D u rab le............................................................ N o ndurable..................................................... 101.7 107.5 96.0 104.4 109.6 99.2 102.8 103.5 109.0 98.1 104.0 109.1 98.9 104.3 109.1 99.5 104.8 109.4 Total raw or slightly processed goods ........ D u rab le............................................................ Nondurable ..................................................... 92.3 107.8 91.5 94.2 122.5 92.9 92.4 111.7 91.4 93.1 94.8 114.6 93.8 95.4 118.6 94.2 108.7 96.9 112.1 92.2 June 100.1 96.2 121.8 95.0 Sept. Oct. Nov. Dec. Jan. Feb. 111.7 98.6 112.0 112.6 112.8 98.8 111.4 98.5 98.3 98.5 98.5 105.1 109.7 100.5 105.1 109.7 100.4 105.8 110.9 100.7 106.0 106.5 100.9 105.9 111.5 100.5 106.5 111.1 112.0 101.0 112.1 101.0 96.2 125.7 94.7 95.9 130.9 94.3 94.9 137.3 92.9 94.7 137.8 92.7 94.5 137.8 92.4 94.1 139.5 92.0 94.2 143.4 91.9 35. Annual data: Producer Price Indexes, by stage of processing (1982 = 100 ) In d e x 1978 1979 1980 1981 1982 1983 1984 1985 1986 96.1 96.6 94.6 100.0 100.0 100.0 101.6 101.3 103.7 103.3 105.2 104.7 103.8 107.5 103.2 101.4 109.7 F in is h e d g o o d s : Total ........................................................................... Consumer g o o d s .................................................. Capital equipment ................................................ 69.8 69.4 71.3 77.6 77.5 77.5 88.0 88.6 85.8 102.8 In t e r m e d ia t e m a te r ia ls , s u p p lie s , a n d c o m p o n e n ts : Total ........................................................................... Materials and components for m anufacturing...................................................... Materials and components for construction .... Processed fuels and lubricants ......................... C o n ta in e rs ............................................................. S u p p lie s ................................................................. 69.5 78.4 90.3 98.6 100.0 100.6 103.1 102.7 99.1 72.0 76.5 49.9 71.0 72.9 80.9 84.2 61.6 79.4 80.2 91.7 91.3 85.0 89.1 89.9 98.7 97.9 100.0 100.0 100.0 100.0 100.0 101.2 102.8 104.1 105.6 95.7 105.9 104.1 103.3 107.3 92.8 109.0 104.4 102.2 85.9 95.3 104.6 84.6 69.4 103.5 104.7 95.8 94.8 96.9 102.7 87.7 93.2 81.6 92.2 100.6 96.7 96.9 95.4 100.4 101.8 108.1 72.7 110.3 105.6 C r u d e m a te r ia ls f o r f u r t h e r p r o c e s s in g : Total ........................................................................... Foodstuffs and feedstuffs .................................. Nonfood materials except fuel .......................... Fuel ........................................................................ 104 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 73.4 87.3 57.5 48.2 100.0 69.6 57.3 103.0 103.9 101.8 84.8 100.0 100.0 100.0 100.0 101.3 101.8 100.7 105.1 102.2 105.1 36. U.S. export price indexes by Standard International Trade Classification (June 1977=100, unless otherwise indicated) C a te g o ry A L L C O M M O D IT IE S 1974 SITO ( 9 /8 3 - 1 0 0 ) ..................................................................... (3/83 = 10 0 )................................................................................................. Meat (3/83 = 1 0 0 )............................................................................................... Fish (3 /8 3 = 1 0 0 ) ................................................................................................ Grain and grain preparations (3 /8 0 = 1 0 0 ) ................................................... Vegetables and fruit (3 /8 3 -1 0 0 ) ................................................................... Feedstuffs for animals (3/83 —1 0 0 )................................................................ Mlsc. food products (3/83 —1 0 0 ).................................................................... 03 04 05 08 09 (6/83 —1 0 0 )............................................................. Beverages ( 9 /8 3 - 1 0 0 ) .................................................................................... Tobacco and tobacco products (6 /8 3 —1 0 0 )............................................... 1 11 12 (6 /8 3 —1 0 0 )............................................................................ Raw hides and skins ( 6 /8 0 = 1 0 0 ) .................................................................. Oilseeds and oleaginous fruit ( 9 /7 7 - 1 0 0 ) .................................................... Crude rubber (including synthetic and reclaimed) ( 9 /8 3 - 1 0 0 ) ................ W o o d ..................................................................................................................... Pulp and waste paper (6/83 —100) ................................................................ Textile fib e rs ........................................................................................................ Crude fertilizers and m in e ra ls.......................................................................... Metalliferous ores and metal scrap ................................................................ 2 21 22 1985 June Sept. 1986 Dec. Mar. June 1987 Sept. Dec. Mar. June Sept. Dec. 97.5 96.5 96.7 97.0 96.7 95.1 96.2 97.2 99.9 100.2 102.8 94.0 104.7 103.6 90.3 90.2 106.1 93.6 90.5 111.5 77.2 81.2 122.0 111.2 122.6 79.8 123.4 118.5 62.9 130.8 85.7 108.6 83.4 129.0 122.9 66.5 130.8 93.7 110.0 79.6 127.9 126.3 62.1 124.4 92.4 109.4 88.5 117.8 135.4 72.3 125.4 111.5 109.3 101.7 104.7 101.4 104.0 104.8 104.0 104.4 104.4 104.5 105.7 105.6 105.7 106.3 191.2 107.5 146.2 138.7 115.0 155.1 90.7 109.1 189.1 64.3 109.0 174.0 142.6 119.2 149.8 99.7 114.4 200.3 73.6 112.9 179.9 146.6 114.4 149.8 103.8 102.6 112.2 101.8 102.2 109.2 82.6 126.9 75.7 108.1 87.1 118.9 83.4 107.7 82.1 115.3 88.5 106.0 89.5 114.7 106.2 79.1 125.8 85.5 104.7 100.1 99.7 105.3 99.6 101.8 99.5 98.6 100.9 98.4 95.6 101.9 95.1 96.5 103.0 95.9 23 24 25 26 27 28 96.8 126.2 71.2 106.3 125.7 96.1 105.8 167.9 82.0 93.3 129.0 64.2 107.1 124.5 93.8 103.6 169.4 80.1 92.5 139.9 63.9 106.0 128.1 92.7 97.7 165.5 78.7 95.8 138.9 66.9 106.0 128.7 98.8 168.0 83.4 95.6 148.9 65.8 106.1 128.7 109.7 98.6 166.1 80.5 92.3 138.0 64.5 105.3 129.7 119.8 74.7 164.3 84.6 92.2 162.8 80.7 97.1 168.8 60.4 106.2 139.0 133.0 99.7 155.6 82.2 M i n e r a l f u e l s ................................................................................................................................................ 3 99.2 97.6 96.6 91.9 86.7 85.7 84.7 85.6 84.4 85.6 84.7 A n i m a l a n d v e g e t a b l e s o i l s , f a t s , a n d w a x e s .............................................................. 4 42 144.5 164.8 114.5 128.8 101.4 108.7 90.8 95.4 84.4 95.3 76.5 80.8 86.8 Fixed vegetable oils and fats (6 /8 3 —1 0 0 )................................................... 87.0 88.9 89.1 94.5 94.7 94.1 94.3 98.4 100.4 (3 /8 3 = 1 0 0 ) ....................................................................................... Organic chemicals ( 1 2 / 8 3 - 1 0 0 ) .................................................................... Fertilizers, manufactured (3/83 —1 0 0 )............................................................ 5 51 56 96.8 96.5 87.9 97.1 97.1 89.8 96.6 95.4 90.0 96.5 93.5 95.4 89.3 84.0 93.1 77.4 92.2 89.4 68.7 96.6 99.5 75.4 103.1 114.3 80.4 104.1 88.6 111.1 88.0 108.6 115.8 93.9 6 99.2 79.2 149.0 151.6 95.3 79.6 105.2 99.2 75.9 148.3 149.6 95.9 79.8 105.4 99.1 78.5 148.7 148.2 98.2 78.2 104.4 100.3 77.8 151.0 152.2 98.4 80.2 105.3 101.2 102.2 102.7 84.2 150.4 165.3 151.3 167.9 100.2 100.1 79.4 105.6 78.8 105.7 104.4 96.3 152.1 174.4 101.5 80.3 105.7 106.8 82.5 150.0 158.7 99.4 79.1 105.5 153.9 177.7 101.5 90.1 105.6 108.5 99.7 155.2 182.3 102.4 94.6 106.2 109.6 97.2 155.6 184.6 104.5 95.3 106.7 142.9 167.4 155.7 155.1 152.0 133.3 116.1 133.9 196.6 143.1 167.1 156.0 156.3 152.4 99.9 134.1 115.3 133.8 199.3 143.3 167.5 156.2 158.4 152.2 99.4 134.5 113.8 135.0 200.7 144.0 169.1 155.5 159.0 152.3 99.9 136.5 115.1 135.5 203.3 144.2 169.2 154.7 158.9 153.3 99.2 137.0 114.2 136.4 206.8 144.6 169.5 155.0 160.4 154.4 98.9 137.8 114.4 136.5 207.4 145.5 171.4 155.7 161.8 155.3 98.1 139.7 114.9 137.9 209.7 146.2 173.0 154.7 165.0 157.7 96.1 141.3 117.0 138.0 211.4 146.7 171.7 155.9 165.8 157.8 96.0 140.8 117.4 138.5 214.7 147.2 173.4 156.5 167.8 157.9 95.5 141.2 117.6 138.9 215.7 148.0 174.3 157.1 168.3 159.3 95.4 142.1 119.1 139.1 218.7 103.4 104.1 104.3 105.3 107.3 107.7 108.4 Food B e v e ra g e s a n d to b a c c o C r u d e m a te r ia ls C h e m ic a ls (9/81 = 1 0 0 ).................................... Leather and furskins (9/79 —1 0 0 )................................................................... Rubber manufactures ........................................................................................ Paper and paperboard products ( 6 /7 8 = 1 0 0 ) .............................................. Iron and steel (3/82 = 100) .............................................................................. Nonferrous metals (9/81 =100) ...................................................................... Metal manufactures, n.e.s. (3 /8 2 -1 0 0 ) ........................................................ In t e r m e d ia t e m a n u fa c tu r e d p r o d u c t s 0 01 61 62 64 67 68 69 120.2 68.6 101.6 59.0 131.4 90.2 106.6 116.9 64.8 131.9 87.4 108.2 96.3 101.6 102.2 102.9 101.4 95.8 88.0 94.8 148.3 62.9 104.4 135.5 121.2 88.0 68.6 101.1 M a c h in e r y a n d t r a n s p o r t e q u ip m e n t, e x c lu d in g m ilita r y (12/78 = 100) ............................................... Power generating machinery and equipment (12/78= 100 ) ...................... Machinery specialized for particular industries (9 /7 8 = 1 0 0 ) ...................... Metalworking machinery (6 /7 8 -1 0 0 ) ............................................................ General industrial machines and parts n.e.s. 9/78 = 1 0 0 ).......................... Office machines and automatic data processing equipment ..................... Telecommunications, sound recording and reproducing equ ipm ent........ Electrical machinery and equipm ent............................................................... Road vehicles and parts ( 3 /8 0 = 1 0 0 ) ............................................................ Other transport equipment, excl. military and commercial a v ia tio n ........ a n d c o m m e r c ia l a ir c r a ft 7 71 72 73 74 75 76 77 78 79 100.0 ....................................................................................................... 8 Apparel (9/83 = 1 0 0 ).......................................................................................... Professional, scientific, and controlling instruments and apparatus......... Photographic apparatus and supplies, optical goods, watches and clocks ( 1 2 / 7 7 - 1 0 0 ) ......................................................................................... 84 87 100.4 104.7 178.3 100.3 105.0 178.7 100.3 105.3 178.8 182.1 183.8 183.8 184.8 186.4 188.5 190.2 191.9 88 129.1 127.5 128.5 131.6 132.9 132.7 132.0 133.4 133.1 129.5 128.2 Miscellaneous manufactured articles, n.e.s.................................................... 89 93.1 93.1 92.4 95.6 95.6 97.6 97.7 98.1 102.1 103.0 103.8 G o l d , n o n - m o n e t a r y ( 6 / 8 3 - 1 0 0 ) ............................................................................................. 971 75.4 77.4 77.5 81.8 82.2 97.5 94.5 98.2 108.4 110.0 117.1 O th e r m a n u fa c tu r e d a r tic le s - 102.6 - - - 110.0 - - - - Data not available. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 105 MONTHLY LABOR REVIEW April 1988 • Current Labor Statistics: Price Data 37. U.S. import price indexes by Standard International Trade Classification (June 1977=100, unless otherwise indicated) C a te g o ry 1974 SITC 1986 1985 Dec. Mar. June 1987 Sept. Dec. Mar. 94.2 88.5 83.2 83.9 86.0 91.6 102.8 03 113.4 122.7 106.7 139.3 104.7 118.5 107.1 144.8 109.1 126.9 109.4 149.6 105.3 134.4 111.5 157.1 100.2 131.2 100.5 132.7 132.1 116.8 161.6 04 05 06 07 141.9 131.3 111.9 64.6 146.9 119.4 124.6 85.9 149.2 119.4 69.2 154.0 127.1 123.9 71.8 155.3 125.5 124.3 61.0 161.0 120.5 126.0 50.9 1 11 162.1 159.1 163.2 161.8 165.5 163.9 165.8 165.5 168.0 168.2 C r u d e m a t e r i a l s ....................................................................................................................................... 2 Crude rubber (inc. synthetic & reclaimed) (3/84 = 1 0 0 ).............................. Wood (9 /8 1 -1 0 0 ) ............................................................................................. Pulp and waste paper ( 1 2 / 8 1 - 1 0 0 ) .............................................................. Crude fertilizers and crude minerals (12/83 = 100) ..................................... Metalliferous ores and metal scrap (3/84 = 1 0 0 )......................................... Crude vegetable and animal materials, n.e.s................................................. 23 24 25 27 28 29 91.2 73.2 99.4 75.8 95.3 75.5 106.3 79.9 98.1 76.9 109.4 98.5 78.5 107.2 92.8 100.0 95.6 104.4 100.4 98.2 104.8 100.2 90.1 102.5 94.2 78.8 104.3 74.9 101.5 94.5 103.6 ( 6 /8 2 - 1 0 0 ) ....................................................... Petroleum and petroleum products (6/82 —100) .......................................... 3 33 79.1 80.1 55.3 54.7 37.5 36.1 (9/83 —100) ................................................................................. Vegetable oils (9/83 —1 0 0 ).............................................................................. 4 42 50.6 48.9 41.4 39.3 39.3 37.4 (9 /8 2 -1 0 0 ) ....................................................................................... Medicinal and pharmaceutical products (3/84 —100) ................................. Manufactured fertilizers (3 /8 4 —1 0 0 ).............................................................. Chemical materials and products, n.e.s. (9 /8 4 —1 0 0 )................................. 5 54 56 59 94.2 96.7 78.5 97.8 94.6 102.9 79.2 99.9 93.3 104.9 79.7 100.3 6 68 133.4 141.3 138.1 124.0 156.5 128.1 162.2 118.3 80.4 69 121.6 134.0 141.6 136.5 130.8 157.1 131.2 164.2 117.3 79.4 124.4 135.6 143.0 137.7 134.3 157.1 132.9 169.6 118.1 78.9 127.8 7 72 73 74 107.2 104.9 98.1 98.0 111.5 105.0 103.8 115.3 115.4 107.7 109.0 75 93.7 96.9 76 77 78 88.6 83.1 117.8 A L L C O M M O D IT IE S ( 9 /8 2 - 1 0 0 ) ..................................................................... ( 9 /7 7 - 1 0 0 ) ................................................................................................. M e a t..................................................................................................................... Dairy products and eggs (6 /8 1 -1 0 0 ) .......................................................... F is h ........................................................................................................................ Bakery goods, pasta products, grain and grain preparations (9 /7 7 -1 0 0 ) ....................................................................................................... Fruits and vegetables ........................................................................................ Sugar, sugar preparations, and honey (3/82 —1 0 0 ).................................... Coffee, tea, c o c o a .............................................................................................. Food B e v e ra g e s a n d to b a c c o .................................................................................................................. Beverages ........................................................................................................... F u e ls a n d r e la t e d p r o d u c t s F a ts a n d o ils C h e m ic a ls (12/77 —100) ................................. Leather and furskins .......................................................................................... Rubber manufactures, n.e.s............................................................................... Cork and wood manufactures ......................................................................... Paper and paperboard products ..................................................................... T extiles................................................................................................................. Nonmetallic mineral manufactures, n.e.s........................................................ Iron and steel (9/78 —100) .............................................................................. Nonferrous metals (12/81 — 1 0 0 ) .................................................................... Metal manufactures, n.e.s.................................................................................. In t e r m e d ia t e m a n u f a c t u r e d p r o d u c ts M a c h i n e r y a n d t r a n s p o r t e q u i p m e n t ( 6 / 8 1 — 1 0 0 ) ................................................. Machinery specialized for particular industries (9 /7 8 —100) ...................... Metalworking machinery (3 /8 0 —100) ............................................................ General industrial machinery and parts, n.e.s. (6/81 -1 0 0 ) ...................... Office machines and automatic data processing equipment ( 3 /8 0 - 1 0 0 ) ...................................................................................................... Telecommunications, sound recording and reproducing apparatus ( 3 /8 0 - 1 0 0 ) ...................................................................................................... Electrical machinery and equipment (12/81 = 100) ..................................... Road vehicles and parts (6/81 - 1 0 0 ) ............................................................ ( 3 /8 0 - 1 0 0 ) ...................................................... Plumbing, heating, and lighting fixtures (6/80 = 100) .................................. Furniture and parts (6 /8 0 -1 0 0 ) ..................................................................... Clothing (9 /7 7 -1 0 0 ) ......................................................................................... Footw ear.............................................................................................................. Professional, scientific, and controlling instruments and apparatus ( 1 2 / 7 9 - 1 0 0 ) .................................................................................. Photographic apparatus and supplies, optical goods, watches, and clocks ( 3 /8 0 - 1 0 0 ) ........................................................................................... Misc. manufactured articles, n.e.s. ( 6 /8 2 - 1 0 0 ) .......................................... M is c . m a n u f a c t u r e d a r t ic le s G o l d , n o n - m o n e t a r y ( 6 / 8 2 — 1 0 0 ) ............................................................................................. 106 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 0 01 02 61 62 63 64 65 66 67 102.1 121.6 June Sept. Dec. 96.8 98.7 102.0 102.8 135.9 119.6 167.4 142.9 118.9 174.4 105.5 142.0 122.3 175.2 165.2 125.4 128.6 49.3 161.2 124.5 128.0 48.3 168.3 131.2 125.3 51.5 170.8 171.5 174.1 174.6 174.4 175.6 175.9 177.8 105.6 84.5 120.3 108.6 89.4 119.2 105.9 97.3 102.9 113.6 112.7 97.8 95.4 104.7 103.1 79.1 115.0 100.5 99.5 98.0 113.4 33.6 32.1 38.4 37.9 49.7 49.9 54.8 55.2 56.4 57.3 55.2 56.2 35.5 33.5 51.6 50.0 50.8 49.2 54.5 52.6 61.3 59.4 64.5 62.5 98.7 120.3 83.6 105.0 99.5 118.8 98.8 108.2 104.4 123.3 124.2 86.0 95.3 112.0 104.6 98.5 100.0 111.2 111.9 98.7 113.3 118.5 93.4 93.2 110.0 110.1 77.4 79.7 101.0 102.8 95.9 116.2 81.8 104.3 138.8 147.4 138.1 137.4 157.5 135.1 178.2 119.0 83.5 129.1 139.4 143.3 138.1 142.7 164.8 135.3 180.2 118.5 81.6 129.1 142.2 149.5 140.8 144.3 165.2 138.8 183.1 122.3 82.4 133.4 147.4 156.6 140.5 151.6 165.0 140.4 190.3 127.1 90.9 134.5 152.8 159.6 138.0 156.3 174.6 142.8 195.1 132.1 97.5 136.0 157.9 167.5 139.8 157.6 177.7 147.6 199.3 138.9 101.9 139.4 120.2 121.0 112.8 115.7 113.9 123.9 127.5 122.4 120.5 126.1 130.0 126.1 123.3 126.4 130.0 129.8 122.4 129.4 136.9 135.0 128.7 101.3 102.5 102.4 103.2 106.4 106.8 109.1 89.4 84.5 123.4 91.6 87.5 127.1 93.7 89.5 129.8 93.9 91.7 133.2 94.6 93.6 137.0 95.5 94.8 139.2 95.9 94.2 139.6 97.3 96.5 141.7 112.1 118.1 120.1 110.7 110.1 8 100.8 103.3 81 82 84 85 115.0 142.7 134.5 142.7 120.1 147.0 133.4 147.0 104.8 123.5 142.2 135.3 142.2 109.5 125.5 145.8 137.8 145.8 109.6 125.5 146.9 139.1 146.9 114.3 125.5 148.9 145.5 148.9 118.1 130.6 153.3 150.9 153.3 119.8 131.1 156.1 153.8 156.1 123.8 137.5 161.2 154.5 161.2 87 102.4 106.4 112.5 118.3 118.0 125.6 129.5 127.0 132.4 88 94.5 97.9 99.3 106.9 112.3 111.8 114.4 102.1 103.2 103.4 107.6 89 111.0 116.9 121.8 113.2 124.6 116.9 132.2 971 101.0 106.7 107.3 126.9 123.3 128.0 141.5 143.5 152.8 38. U.S. export price indexes by end-use category (September 1983 = 100 unless otherwise indicated) C a te g o ry Foods, feeds, and beverages ............................................................. Raw m ate rials........................................................................................ Raw materials, nondurable ............................................................... Raw materials, d u ra b le ...................................................................... Capital goods (1 2 /8 2 = 1 0 0 )................................................................ Automotive vehicles, parts and engines (12/82 — 100) ................. Consumer g o o d s .................................................................................... Durables ............................................................................................... Nondurables......................................................................................... 39. Percentage of 1980 trade value 16.294 30.696 21.327 9.368 30.186 7.483 7.467 3.965 3.501 Dec. 77.5 95.9 97.9 91.0 106.6 109.2 101.4 99.5 103.3 1987 1986 1985 June Mar. Sept. 75.5 96.0 97.5 92.5 107.4 109.5 103.7 74.7 94.9 96.1 91.9 107.5 110.4 104.5 101.8 101.8 102.1 105.5 107.2 106.9 66.0 93.3 93.7 92.5 107.7 Dec. 68.4 94.8 95.4 93.2 108.3 110.8 111.8 104.5 105.7 102.7 108.5 Mar. June 67.1 98.2 99.4 95.1 108.9 111.9 106.9 103.9 109.8 Sept. 71.3 103.1 104.7 99.2 109.4 112.1 107.1 103.6 110.5 68.0 105.9 106.1 105.3 109.8 112.5 107.5 104.3 110.5 Dec. 75.6 108.1 108.4 107.3 110.7 112.6 108.1 105.3 110.9 U.S. import price indexes by end-use category (December 1982=100) C a te g o ry Foods, feeds, and beverages ............................................................. Petroleum and petroleum products, excl. natural g a s .................... Raw materials, excluding petroleum .................................................. Raw materials, n o n durable............................................................... Raw materials, d u ra b le ...................................................................... Capital g o o d s.......................................................................................... Automotive vehicles, parts and e n g in e s ........................................... Consumer g o o d s ................................................................................... D u ra b le ................................................................................................. Nondurable........................................................................................... 40. Per centage of 1980 trade value 7.477 31.108 19.205 9.391 9.814 13.164 11.750 14.250 5.507 8.743 1985 Dec. 1986 Mar. June 106.0 80.5 93.9 91.8 96.2 115.8 55.4 94.5 91.1 98.1 100.0 102.8 111.4 102.4 100.7 104.7 115.6 104.5 103.4 106.0 108.2 36.8 94.0 89.7 98.7 106.7 119.0 106.5 106.5 106.6 1987 Sept. 112.3 32.6 95.3 89.5 101.4 109.4 121.0 110.1 111.2 108.6 Dec. 109.2 38.3 94.9 89.7 100.3 110.7 123.9 110.6 111.6 109.2 Mar. June 104.7 50.5 96.9 91.8 102.3 115.3 126.2 114.3 114.8 113.7 106.6 55.8 100.5 94.5 106.8 117.9 128.0 117.5 117.5 117.6 Sept. 107.5 57.9 103.5 95.4 112.0 118.2 127.9 119.1 119.0 119.3 Dec. 109.9 56.8 106.7 97.9 116.1 122.3 129.7 122.1 122.2 121.9 U.S. export price indexes by Standard Industrial Classification 1 1985 1986 1987 In d u s t r y g r o u p Dec. Manufacturing: Food and kindred products (6/83 = 100) ............................. Lumber and wood products, except furniture ( 6 /8 3 - 1 0 0 ) ............................................................................ Furniture and fixtures (9/83 = 100) ....................................... Paper and allied products (3/81 = 1 0 0 )................................ Chemicals and allied products (12/84 = 1 0 0 )...................... Petroleum and coal products (12/83 — 1 0 0 )........................ Primary metal products (3/82 = 100) .................................... Machinery, except electrical (9 /7 8 = 1 0 0 ) ............................ Electrical machinery (1 2/80= 100 ) ....................................... Transportation equipment (1 2 /7 8 = 1 0 0 ).............................. Scientific instruments; optical goods; clocks ( 6 /7 7 = 1 0 0 ) ............................................................................ Mar. 98.1 97.0 101.2 101.5 109.2 95.7 98.9 93.5 89.8 140.6 108.4 92.1 99.2 99.1 87.9 140.5 June 95.0 101.2 111.2 112.6 164.1 165.1 109.7 101.5 98.3 83.1 89.8 140.3 112.3 167.1 156.7 159.7 161.2 Sept. Dec. Mar. June Sept. Dec. 95.2 97.6 99.0 104.1 103.6 113.4 102.1 110.1 109.8 113.4 113.7 113.0 114.0 116.7 106.3 137.2 116.9 123.2 167.4 105.7 110.4 108.7 95.9 82.2 89.9 140.7 113.6 169.4 161.5 162.3 106.1 96.2 83.1 90.7 140.5 112.6 83.5 91.7 141.0 115.2 170.0 86.8 133.1 114.1 120.3 107.6 87.1 97.4 141.2 115.3 171.2 100.1 101.0 141.4 115.8 172.3 142.0 116.8 173.9 163.3 164.6 164.7 165.4 100.1 112.6 85.8 1 SIC - based classification. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 107 MONTHLY LABOR REVIEW 41. April 1988 • Current Labor Statistics: Price Data U.S. import price indexes by Standard Industrial Classification 1 1985 1987 1986 In d u s t r y g r o u p Mar. Dec. June Sept. Mar. Dec. Sept. June Dec. Manufacturing: 117.7 104.7 133.4 115.6 106.4 135.1 118.0 107.1 137.8 122.4 108.0 139.3 122.7 111.7 146.0 125.9 113.6 150.9 128.5 116.2 153.9 129.8 115.8 98.2 137.4 95.8 122.1 101.2 124.8 103.5 139.4 127.9 105.4 142.2 103.8 127.9 105.6 150.3 102.4 134.5 109.6 154.0 104.7 135.0 155.7 105.7 141.3 111.5 162.9 106.1 136.3 113.1 167.6 97.5 144.0 82.6 102.1 104.4 151.8 85.4 115.5 119.1 105.7 136.5 105.8 156.2 91.3 116.2 104.9 159.8 96.0 118.1 122.2 122.6 95.8 119.6 100.9 145.8 82.0 104.9 105.5 97.0 123.9 106.9 138.4 106.6 138.7 108.8 164.0 100.3 119.9 128.1 108.7 141.2 98.8 98.7 115.1 101.8 134.4 Lumber and wood products, except furniture (6 /7 7 -1 0 0 ) ................................................................................... Rubber and miscellaneous plastic products ( 1 2 / 8 0 - 1 0 0 ) ................................................................................. 137.6 98.6 102.6 100.0 Scientific instruments; optical goods; clocks ( 1 2 / 7 9 - 1 0 0 ) ................................................................................. Miscellaneous manufactured commodities ( 9 /8 2 - 1 0 0 ) ................................................................................... 102.1 110.2 100.2 102.6 128.0 130.4 114.2 104.0 133.2 103.9 109.1 113.7 113.7 1*9.1 122.1 120.4 124.6 99.9 101.7 106.9 108.1 110.3 113.8 116.4 118.8 148.7 84.0 111.1 Indexes of productivity, hourly compensation, and unit costs, quarterly data seasonally adjusted Quarterly Indexes 1985 II 1986 III IV 107.2 174.6 98.6 162.8 160.4 162.0 108.2 177.0 99.4 163.6 161.8 163.0 107.9 179.3 99.7 166.1 160.2 164.0 109.5 180.7 105.7 174.1 98.3 164.7 161.5 163.6 106.4 176.2 98.9 165.7 163.4 164.9 105.9 178.3 99.2 168.3 160.8 165.7 107.7 180.0 99.7 167.2 164.7 166.4 107.7 171.8 97.0 164.3 159.5 178.7 132.2 162.5 160.5 109.2 173.8 97.6 163.7 159.1 177.5 142.5 165.2 161.2 108.9 175.7 97.7 166.0 161.4 179.4 128.7 161.6 161.5 124.1 176.1 99.5 142.0 125.3 178.0 99.9 142.1 126.1 180.2 I II 1987 III IV I 109.7 182.2 101.3 166.2 163.9 165.4 109.6 183.6 101.4 167.5 165.7 166.9 109.6 185.2 107.7 181.3 101.2 100.2 168.4 165.2 167.3 107.5 182.6 100.9 169.8 167.0 168.8 171.5 163.9 168.8 109.8 177.2 98.2 166.3 161.5 180.7 129.7 162.8 161.9 109.7 178.4 99.1 167.2 162.6 180.6 129.5 162.7 162.7 109.9 179.5 99.2 168.5 163.2 184.2 130.6 165.4 164.0 127.6 181.0 100.3 141.9 128.4 182.1 101.2 141.8 141.7 142.0 II III IV B u s in e s s : Output per hour of all p e rs o n s................................ Compensation per h o u r............................................ Real compensation per h o u r ................................... Unit labor c o s ts .......................................................... Unit nonlabor payments ........................................... Implicit price deflator ................................................ N o n fa rm 100.1 165.0 163.1 164.3 110.1 169.0 162.4 166.7 109.7 185.8 100.7 169.4 166.0 168.2 187.3 100.3 170.2 168.6 169.6 111.3 189.1 100.3 169.8 172.2 170.7 171.4 171.2 171.3 107.5 184.4 107.6 184.9 171.8 167.4 170.3 108.0 186.3 99.7 172.5 169.2 171.4 109.1 187.9 99.6 172.2 173.0 172.5 109.0 189.5 99.6 173.8 171.9 173.1 110.5 181.0 99.3 168.7 163.8 183.2 127.7 163.7 163.8 109.7 180.8 98.0 169.7 164.8 184.1 132.2 165.9 165.2 109.9 182.0 97.4 170.9 165.6 186.6 132.9 167.8 166.3 183.3 97.2 171.0 165.5 187.3 142.1 171.4 167.5 129.3 183.1 129.8 184.3 101.2 101.2 130.8 183.9 99.6 140.5 132.9 184.8 98.9 139.0 134.1 185.4 98.3 138.2 101.6 111.1 190.5 100.2 b u s in e s s : Output per hour of all p e rs o n s................................ Compensation per h o u r............................................ Real compensation per h o u r ................................... Unit labor costs .......................................................... Unit nonlabor p a y m e n ts ........................................... Implicit price deflator ................................................. 100.8 N o n fin a n c ia l c o r p o r a tio n s : Output per hour of all e m plo yees........................... Compensation per h o u r............................................ Real compensation per h o u r ................................... Total unit c o s ts ........................................................... Unit labor costs ....................................................... Unit nonlabor c o s ts ................................................ Unit p ro fits ................................................................... Unit nonlabor payments ........................................... Implicit price deflator ................................................ 110.8 _ _ _ _ _ _ _ _ - M a n u fa c tu r in g : Output per hour of all p e rs o n s................................ Compensation per h o u r............................................ Real compensation per h o u r ................................... Unit labor c o s ts .......................................................... - 108 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Data not available. 110.8 101.9 147.7 64.9 110.3 112.5 100.6 (1977 = 100) Item 154.5 144.6 82.4 108.5 109.0 1 SIC - based classification. 42. 120.8 100.2 142.9 134.1 186.3 97.9 138.9 43. Annual indexes of multifactor productivity and related measures, selected years (1977 = 100) Item 1960 1970 1973 1976 1978 1980 1981 1982 1983 1984 1985 1986 P r iv a te b u s in e s s Productivity: Output per hour of all p e rs o n s ............................. Output per unit of capital se rv ic e s ....................... Multifactor productivity........................................... O u tp u t.......................................................................... Inputs: Hours of all persons............................................... Capital services ....................................................... Combined units of labor and capital in p u t......... Capital per hour of all persons................................ P r iv a te n o n fa r m 67.3 100.8 102.0 101.2 78.1 55.3 88.4 101.9 92.9 80.2 95.9 105.3 99.1 93.0 98.4 97.2 98.0 94.5 82.2 54.2 70.8 65.9 90.8 78.7 86.3 86.7 96.9 88.3 93.8 91.1 96.1 97.2 96.5 89.2 96.4 106.0 99.6 92.9 98.5 97.3 98.1 94.4 96.3 87.6 93.3 91.0 95.8 97.0 96.2 101.3 105.1 104.0 104.7 98.9 102.1 101.2 100.6 105.8 99.2 94.2 97.4 106.6 92.4 97.7 108.9 100.3 86.7 95.3 105.4 103.1 88.4 97.7 109.9 105.0 103.8 104.5 98.8 107.5 113.1 109.4 105.3 108.2 117.8 111.5 108.8 105.2 121.7 110.7 115.7 106.7 124.4 100.8 101.2 98.7 93.4 96.9 106.6 99.6 91.1 96.7 108.4 99.1 85.1 94.1 104.8 108.0 114.1 108.8 119.0 105.6 101.4 91.2 98.7 103.2 105.7 92.8 107.6 92.8 119.2 124.0 109.7 92.8 103.4 128.1 112.8 128.5 118.1 113.9 115.2 133.6 121.3 116.0 116.8 138.0 123.8 118.2 102.5 87.3 97.0 110.1 104.7 91.3 99.9 119.3 105.9 90.8 100.5 123.7 107.6 90.5 101.4 127.6 109.4 105.7 123.2 111.4 116.5 1074 126.1 113.5 117.4 114.0 130.6 119.4 114.6 116.8 136.3 123.1 116.7 118.5 141.0 125.8 119.0 103.6 89.2 99.8 104.8 105.9 81.8 99.2 98.4 86.9 105.1 104.7 118.1 95.7 124.2 97.8 117.0 122.5 128.8 99.3 125.9 101.1 92.9 120.3 99.2 129.4 98.7 125.3 104.8 127.0 97.8 126.8 104.4 129.7 112.6 116.6 101.0 102.2 b u s in e s s Productivity: Output per hour of all p e rs o n s ............................. Output per unit of capital s e rv ic e s ....................... Multifactor p roductivity........................................... O u tp u t.......................................................................... Inputs: Hours of all persons............................................... Capital services ....................................................... Combined units of labor and capital in p u t......... Capital per hour of all persons................................ 70.7 103.6 80.9 54.4 77.0 52.5 67.3 68.2 102.8 93.7 79.9 89.6 77.8 85.3 86.8 101.9 106.0 110.0 112.2 M a n u fa c tu r in g Productivity: Output per hour of all p e rs o n s ............................. Output per unit of capital s e rv ic e s....................... Multifactor p roductivity........................................... O u tp u t.......................................................................... Inputs: Hours of all persons............................................... Capital services ....................................................... Combined units of labor and capital in p u ts ....... Capital per hour of all persons................................ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 62.2 102.5 71.9 52.5 80.8 98.6 85.2 78.6 93.4 111.4 97.9 96.3 97.1 96.2 96.8 93.1 101.7 106.0 84.4 51.2 73.0 60.7 97.3 79.7 92.2 82.0 103.1 86.4 98.4 83.8 95.9 96.7 96.1 100.9 104.4 103.7 104.2 99.4 101.5 102.1 101.7 113.1 104.5 111.2 117.5 105.0 116.2 112.0 112.2 117.5 93.5 99.5 99.7 129.0 104.7 123.5 120.6 122.8 120.6 MONTHLY LABOR REVIEW April 1988 • Current Labor Statistics: Productivity Data 44. Annual indexes of productivity, hourly compensation, unit costs, and prices, selected years (1977 = 100) Item 1960 1970 1973 67.6 33.6 68.9 49.7 46.4 48.5 88.4 57.8 90.2 65.4 59.4 63.2 95.9 70.9 96.7 73.9 72.5 73.4 98.3 92.8 98.7 94.3 93.3 94.0 107.6 106.7 107.3 71.0 35.3 72.3 49.7 46.3 48.5 89.3 58.2 90.8 65.2 60.0 63.4 96.4 71.2 97.1 73.9 69.3 72.3 98.5 92.8 98.8 94.3 93.0 93.8 108.6 100.9 107.7 105.6 107.0 73.4 36.9 75.5 49.4 50.2 47.0 59.8 51.5 50.7 91.1 59.2 92.4 64.8 65.0 64.2 52.3 60.1 63.3 97.5 71.6 97.6 72.7 73.4 70.7 65.6 68.9 71.9 98.4 92.9 98.9 94.8 94.3 96.2 89.4 93.8 94.2 100.6 62.2 36.5 74.8 58.7 60.0 59.1 80.8 57.4 89.5 71.0 64.1 69.0 93.4 97.1 92.1 98.1 94.9 93.5 94.5 101.5 108.2 100.5 106.6 101.9 105.2 1976 B u s in e s s : Output per hour of all p e rs o n s................................ Compensation per h o u r............................................ Real compensation per h o u r ................................... Unit labor costs .......................................................... Unit nonlabor payments ........................................... Implicit price deflator ................................................ N o n fa rm b u s in e s s : Output per hour of all p e rs o n s................................ Compensation per h o u r............................................ Real compensation per h o u r ................................... Unit labor costs .......................................................... Unit nonlabor p a y m e n ts ........................................... Implicit price deflator ................................................ N o n fin a n c ia l c o r p o r a tio n s : Output per hour of all e m plo yees........................... Compensation per h o u r............................................ Real compensation per h o u r ................................... Total unit c o s ts ........................................................... Unit labor costs ....................................................... Unit nonlabor c o s ts ................................................ Unit p ro fits ................................................................... Unit nonlabor p a y m e n ts........................................... Implicit price d e fla to r................................................. 1978 1980 1981 1982 1983 1984 1985 1986 1987 100.8 108.5 100.8 99.3 131.5 96.7 132.5 118.7 127.6 100.7 143.7 95.7 142.7 134.6 139.8 100.3 154.9 97.3 154.5 136.6 148.1 103.0 161.5 98.2 156.7 146.4 153.0 105.6 168.0 98.0 159.1 156.5 158.2 107.5 175.9 99.1 163.6 160.3 162.4 109.5 182.8 110.5 188.2 100.3 170.2 169.5 170.0 98.8 131.3 96.6 132.9 118.5 127.8 99.8 143.6 95.7 144.0 133.5 140.3 99.2 154.8 97.2 156.0 136.5 149.2 102.5 161.5 98.2 157.6 148.3 154.3 104.6 167.8 97.9 160.4 156.4 159.0 105.8 175.2 98.7 165.6 161.3 164.1 107.5 182.0 99.1 131.1 96.4 133.4 132.3 136.7 85.2 118.6 127.6 99.6 143.3 95.5 147.7 143.8 159.1 98.1 137.8 141.7 100.4 154.3 96.9 159.5 153.8 176.4 78.5 142.1 149.8 103.5 159.9 97.3 159.5 154.5 174.3 110.9 152.1 153.7 106.0 165.8 96.7 160.8 156.5 173.6 136.5 160.6 157.9 108.2 172.8 97.4 164.4 159.7 178.3 133.9 162.7 160.7 109.9 178.9 98.9 167.7 162.8 182.2 129.3 163.7 163.1 101.4 132.4 97.4 130.6 97.8 103.6 145.2 96.7 140.1 105.9 157.5 98.9 148.7 114.0 138.6 112.0 162.4 98.8 145.0 128.5 140.2 118.1 168.0 98.0 142.2 138.6 141.2 124.2 176.9 99.6 142.4 134.7 140.2 128.8 182.7 100.9 141.8 137.9 140.7 100.8 108.4 100.7 107.3 107.8 105.7 102.0 104.4 106.6 101.0 166.9 163.8 165.8 100.6 169.3 165.2 167.8 108.4 187.1 99.8 172.6 170.4 171.8 - - M a n u fa c tu r in g : Output per hour of all p e rs o n s ................................ Compensation per h o u r............................................ Real compensation per h o u r ................................... Unit labor c o s ts .......................................................... Unit nonlabor payments ........................................... Implicit price deflator ................................................ - 110 Data not available. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 68.8 93.8 73.7 70.7 72.8 121.0 111.8 131.8 133.0 185.1 98.7 139.1 - - 45. Unemployment rates, approximating U.S. concepts, in nine countries, quarterly data seasonally adjusted 1987 1986 Annual average Country 1986 1987 IV III II IV III II I T o t a l la b o r f o r c e b a s is United S ta te s ........................................ Canada ................................................... Australia ................................................ Japan ...................................................... F ra n c e .................................................... G erm any................................................ Italy 1, 2 .................................................. Sweden ................................................. United Kingdom .................................... 6.9 9.5 8.0 2.8 10.4 7.1 6.2 2.6 11.1 6.1 - - _ - 7.1 9.5 7.7 - 6.8 2.8 2.9 9.4 8.3 2.9 10.4 7.2 10.6 10.6 7.0 5.9 6.9 6.5 2.6 11.1 10.9 6.2 2.6 11.2 - 6.9 9.6 8.2 2.6 6.5 9.6 8.3 3.0 6.2 5.9 5.8 9.0 8.0 3.1 8.8 8.0 2.8 10.9 7.0 11.0 10.8 10.6 7.0 7.1 6.6 2.0 10.6 6.6 6.6 1.9 1.9 9.7 7.1 6.9 1.7 9.1 3.1 6.0 8.8 8.0 2.8 8.1 8.0 2.8 11.1 10.8 8.1 10.2 7.9 2.7 C iv ilia n la b o r f o r c e b a s is United S ta te s ........................................ Canada .................................................. Australia ................................................ Japan ...................................................... France .................................................... G erm any................................................ Italy1, 2 .................................................... Sweden .................................................. United Kingdom .................................... 8.1 - 7.2 9.6 7.8 2.8 - 2.8 7.0 9.6 10.7 7.2 6.3 2.7 11.1 6.2 - _ - “ 1 Quarterly rates are for the first month of the quarter. 2 Major changes in the Italian labor force survey, intro duced in 1977, resulted in a large increase in persons enu merated as unemployed. However, many persons reported that they had not actively sought work in the past 30 days, and they have been provisionally excluded for comparability with U.S. concepts. Inclusion of such persons would about https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 10.7 7.3 6.3 2.6 11.2 6.3 9.1 7.0 9.7 8.3 2.9 6.8 6.6 9.4 8.4 2.9 9.6 8.3 3.0 10.8 10.8 11.2 11.2 7.2 7.0 6.0 2.6 11.2 6.6 2.6 7.1 6.7 7.2 6.7 1.9 10.3 10.9 2.0 10.7 8.2 7.2 6.8 1.9 9.8 5.9 7.3 7.0 1.7 9.2 double the Italian unemployment rate shown. - Data not available. NOTE: Quarterly figures for France, Germany, and the United Kingdom are calculated by applying annual adjust ment factors to current published data and therefore should be viewed as less precise indicators of unemployment under U.S. concepts than the annual figures. MONTHLY LABOR REVIEW April 1988 • Current Labor Statistics: International Comparisons Data 46. Annual data: Employment status of the civilian working-age population, approximating U.S. concepts, 10 countries (Numbers in thousands) Employment status and country 1978 1979 1980 102,251 10,895 6,443 54,610 22,460 26,000 20,570 5,010 4,203 26,260 104,962 11,231 6,519 55,210 22,670 26,250 20,850 5,100 4,262 26,350 106,940 11,573 6,693 55,740 22,800 26,520 63.2 62.7 61.9 62.8 57.5 53.3 47.8 48.8 63.7 63.4 61.6 62.7 57.5 53.3 48.0 49.0 63.8 64.1 62.1 62.6 57.2 53.2 48.2 50.2 66.9 62.5 1981 1982 1983 1984 1985 108,670 11,904 6,810 56,320 22,930 26,650 21,320 5,520 4,327 26,590 110,204 11,958 6,910 56,980 23,160 26,700 21,410 5,570 4,350 26,740 111,550 12,183 6,997 58,110 23,130 26,650 21,590 5,600 4,369 26,790 113,544 12,399 7,133 58,480 23,290 26,760 21,670 5,620 4,385 27,180 115,461 12,639 7,272 58,820 23,340 26,980 21,800 5,710 4,418 27,370 117,834 12,870 7,562 59,410 23,480 27,180 21,990 5,760 4,437 27,460 63.9 64.8 61.9 62.6 57.1 52.9 48.3 51.4 64.0 64.1 61.7 62.7 57.1 52.6 47.7 51.2 64.4 64.8 61.5 62.7 56.6 52.4 47.3 50.5 64.8 65.2 61.8 62.3 56.2 52.6 47.2 50.7 66.9 62.7 65.3 65.7 63.0 62.1 56.2 53.0 47.5 50.8 67.2 62.5 1986 L a b o r fo rc e United S ta te s .............................................................. Canada ........................................................................ A u stralia....................................................................... Japan ........................................................................... F ra n ce .......................................................................... G erm any...................................................................... Ita ly ............................................................................... N etherlands................................................................. S w eden........................................................................ United K ingdo m .......................................................... 2 1,120 5,310 4,312 26,520 P a r tic ip a tio n r a t e 1 United S ta te s .............................................................. Canada ........................................................................ A u stralia....................................................................... Japan ........................................................................... France .......................................................................... G erm any...................................................................... Ita ly ............................................................................... N etherlands................................................................. S w e d e n ........................................................................ United K ingdo m .......................................................... 66.8 66.8 62.2 62.3 64.0 64.4 61.4 63.1 56.6 52.3 47.5 50.9 66.7 62.1 100,397 11,006 6,416 55,060 4,980 4,226 24,670 100,834 10,734 6,300 56,550 21,170 24,750 20,320 4,890 4,218 23,600 105,005 25,560 20,280 5,010 4,219 23,800 99,526 10,644 6,415 55,620 21,240 25,140 20,250 4,980 4,213 23,710 6,490 56,870 20,980 24,790 20,390 4,930 4,249 24,000 107,150 11,311 6,670 57,260 20,900 24,950 20,490 5,110 4,293 24,300 109,597 11,634 6,952 57,740 20,970 25,210 20,610 5,200 4,319 24,400 59.9 58.7 57.8 61.4 54.0 51.7 45.9 46.4 65.3 59.2 59.2 59.3 58.3 61.3 53.5 51.7 46.1 47.0 65.6 58.1 59.0 59.9 58.4 61.2 52.8 50.8 45.9 46.6 65.1 55.7 57.8 57.0 57.3 61.2 52.3 49.6 45.2 45.8 64.7 55.3 57.9 56.7 55.3 61.4 51.8 48.6 44.7 44.5 64.4 54.7 59.5 57.4 56.0 61.0 51.0 48.5 44.5 44.3 64.5 55.3 60.1 58.4 56.6 60.6 50.4 48.7 44.4 45.4 65.0 55.7 60.7 59.4 57.9 60.4 50.2 49.1 44.6 45.9 65.4 55.6 6,137 836 408 1,170 1,370 780 920 270 7,637 865 409 1,140 1,470 770 920 330 8,273 898 394 1,260 1,730 1,090 1,040 510 108 2,790 10,678 1,314 495 1,360 1,920 1,560 1,160 590 137 3,030 10,717 1,448 697 1,560 1,960 1,900 1,270 710 151 3,190 8,539 1,399 642 1,610 2,310 1,970 1,280 690 136 3,180 8,312 1,328 602 1,560 2,440 2,030 1,310 600 125 3,070 8,237 1,236 610 1,670 2,510 1,970 1,380 560 118 3,060 7.6 7.5 5.8 9.7 11.0 9.6 11.9 7.2 10.5 8.3 7.0 9.6 10.0 7.5 11.3 9.0 2.7 8.5 7.1 5.9 12.7 3.5 11.9 2.8 2.6 9.9 7.4 5.9 12.3 3.1 11.7 10.4 7.5 66.1 66.6 62.8 62.6 96,048 9,987 6,038 53,370 21,250 25,130 19,720 4,750 4,109 24,610 98,824 10,395 54,040 21,300 25,470 19,930 4,830 4,174 24,940 59.3 57.5 58.0 61.3 54.4 51.5 45.9 46.3 64.6 58.8 6,202 66.6 62.6 E m p lo y e d United S ta te s .............................................................. Canada ........................................................................ A u stralia....................................................................... Japan ........................................................................... France .......................................................................... G e rm any...................................................................... Ita ly ............................................................................... N etherlands................................................................. S w e d e n ........................................................................ United K ingdo m .......................................................... 6,111 99,303 10,708 6,284 54,600 21,330 25,750 21,200 20,200 11,000 E m p lo y m e n t-p o p u la tio n r a tio 2 United S ta te s .............................................................. Canada ........................................................................ A u stralia....................................................................... Japan ........................................................................... France .......................................................................... G erm any...................................................................... Ita ly ............................................................................... N etherlands................................................................. S w eden........................................................................ United K ingdo m .......................................................... U n e m p lo y e d United S ta te s .............................................................. Canada ........................................................................ A u stralia....................................................................... Japan ........................................................................... F ra n c e .......................................................................... G e rm any...................................................................... Ita ly ............................................................................... N etherlands................................................................. S w e d e n ........................................................................ United K ingdo m .......................................................... 908 405 1,240 1,210 870 850 260 94 1,650 88 86 1,420 1,850 5.8 7.4 6.3 7.1 7.5 U n e m p lo y m e n t r a te United S ta te s .............................................................. Canada ........................................................................ A u stralia....................................................................... Japan ........................................................................... F ra n ce .......................................................................... G erm any...................................................................... Ita ly ............................................................................... N etherlands................................................................. S w e d e n ........................................................................ United K ingdo m .......................................................... 112 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 6.1 8.3 6.3 2.3 5.4 3.3 4.1 5.2 2.1 6.0 3.0 4.4 5.3 6.1 2.0 2.2 2.1 6.2 2.0 6.3 5.4 7.0 1 Labor force as a percent of the civilian working-age population. 2 Employment as a percent of the civilian working-age population. 2.2 6.4 2.9 4.4 7.5 4.1 4.9 9.2 2.5 10.5 - 7.2 2.4 8.3 5.8 5.4 10.6 3.1 11.3 Data not available. 6.0 10.5 2.8 11.2 8.1 2.8 10.7 7.2 6.3 9.7 2.7 11.1 47. Annual indexes of manufacturing productivity and related measures, 12 countries (1977 = 100) Item and country 1960 1970 1973 1975 1979 1980 1981 1982 1983 1984 1985 1986 101.4 101.4 98.2 122.7 119.2 112.3 103.6 102.9 127.2 127.6 114.2 114.0 105.9 98.3 135.0 135.2 114.6 112.0 105.4 142.3 148.2 118.1 116.8 152.5 154.4 118.6 129.0 123.6 144.4 140.5 123.9 131.0 129.8 124.2 119.7 163.7 159.0 118.3 133.0 128.7 146.6 145.1 125.2 136.1 134.7 128.8 119.4 168.2 163.1 119.9 135.6 130.6 148.3 144.7 124.4 136.4 139.5 104.7 99.6 148.2 114.8 115.6 103.8 103.6 111.5 107.0 97.2 105.2 88.9 117.5 114.9 165.4 117.5 119.7 104.0 106.4 116.2 113.3 122.5 125.9 123.9 182.1 99.5 98.3 108.5 76.1 100.9 80.6 85.9 76.2 93.5 94.5 104.2 77.5 96.2 82.9 86.9 82.2 83.9 82.9 83.9 72.2 80.5 80.6 82.8 85.1 71.2 109.6 75.4 104.3 77.7 85.6 80.5 79.9 84.0 84.7 70.7 1976 1977 97.1 94.8 94.3 95.3 98.2 95.1 96.5 98.9 95.8 99.7 101.7 99.1 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 114.8 111.9 106.5 109.7 108.2 110.5 112.3 107.1 110.9 102.5 93.1 96.5 94.8 99.7 99.6 96.1 98.0 97.9 99.0 101.4 106.1 98.2 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 108.1 108.5 113.9 104.1 105.4 105.3 106.6 108.6 106.1 100.3 103.6 100.5 103.2 103.6 124.1 106.8 95.9 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 106.5 106.3 99.3 93.0 99.0 95.9 98.5 98.2 94.4 93.6 93.4 98.0 118.6 118.6 113.4 117.5 123.1 128.4 116.1 134.7 117.0 116.0 O u tp u t p e r h o u r 62.2 50.7 23.2 33.0 37.2 36.4 40:3 35.4 32.4 54.6 42.3 55.9 80.8 75.6 64.8 60.4 65.6 69.6 71.2 72.7 64.3 81.7 80.7 80.4 93.4 90.3 83.1 78.8 83.3 82.3 84.0 90.9 81.5 94.6 94.8 95.5 52.5 41.3 19.2 41.9 49.2 35.4 50.0 36.4 44.8 55.1 52.6 71.2 78.6 73.5 69.9 78.6 82.0 73.3 96.3 93.5 91.9 96.4 95.9 86.6 78.0 84.4 86.9 92.5 95.0 96.1 90.5 95.8 99.5 100.3 104.8 84.4 81.4 82.7 127.1 132.4 97.2 123.8 97.3 97.2 107.9 130.2 125.1 105.3 121.7 107.4 131.2 106.4 114.6 118.1 103.1 103.6 110.7 122.3 115.2 107.7 114.4 99.6 117.6 105.1 105.7 109.8 91.4 101.5 98.2 107.1 100.4 101.7 68.8 15.1 18.8 8.4 12.5 15.8 14.7 15.1 57.4 47.9 33.9 34.9 36.3 36.5 48.0 26.1 39.0 37.9 38.5 31.3 National currency basis United S ta te s .............................................................. Canada ........................................................................ Japan ........................................................................... B e lgium ........................................................................ D e n m a rk...................................................................... F rance.......................................................................... G erm any...................................................................... Ita ly ............................................................................... N etherlands................................................................. N o rw ay......................................................................... S w e d e n ........................................................................ United K ingdo m .... ..................................................... 58.7 54.2 38.4 41.7 33.8 41.5 46.6 23.7 38.5 29.0 34.8 27.1 U.S. dollar basis United S ta te s .............................................................. Canada ........................................................................ Japan ........................................................................... B e lgium ........................................................................ D e n m a rk...................................................................... France .......................................................................... G e rm any...................................................................... Ita ly ............................................................................... Netherlands................................................................. N o rw ay......................................................................... S w eden........................................................................ United K ingdo m .......................................................... 58.7 59.4 28.5 30.0 29.5 41.6 25.9 33.7 25.1 21.7 30.1 43.6 United S ta te s .............................................................. Canada ........................................................................ Japan ........................................................................... B e lgium ........................................................................ D e n m a rk...................................................................... France .......................................................................... G erm any...................................................................... Ita ly ............................................................................... N etherlands................................................................. Nonway......................................................................... S w e d e n ........................................................................ United K ingdo m .......................................................... 92.9 88.6 87.7 86.5 94.6 88.5 90.1 91.1 86.2 96.8 100.2 94.9 102.0 110.6 108.6 116.9 113.9 106.7 112.7 101.8 111.0 122.0 112.6 124.8 116.9 107.0 113.2 107.0 129.6 119.4 109.8 116.5 113.5 104.8 107.4 129.8 105.7 106.6 102.9 104.9 115.1 106.7 97.7 98.4 93.6 137.3 120.2 125.2 119.2 135.7 127.5 117.2 125.5 123.2 O u tp u t United S ta te s .............................................................. Canada ........................................................................ Japan ........................................................................... B e lgium ........................................................................ D e n m a rk...................................................................... France .......................................................................... G e rm any...................................................................... Ita ly ............................................................................... N etherlands................................................................. Nonway......................................................................... S w e d e n ........................................................................ United K ingdo m .......................................................... 88.6 84.9 89.9 86.2 92.7 95.0 90.0 91.0 86.9 92.7 101.0 106.1 96.3 110.1 104.6 106.6 115.4 106.6 98.8 104.0 91.7 110.1 108.3 104.0 102.4 113.4 105.0 97.4 102.6 111.5 92.5 121.2 179.3 119.9 123.4 103.3 122.0 126.7 103.0 110.1 112.8 118.0 116.0 105.2 115.3 95.2 121.9 117.3 107.0 115.2 96.2 98.7 97.8 103.8 108.3 74.8 105.7 75.9 86.4 82.2 81.1 100.6 86.2 100.1 101.7 105.5 101.1 101.2 102.0 89.6 98.0 94.6 98.1 98.7 93.6 92.6 92.3 90.1 82.8 93.4 90.3 94.6 92.2 91.2 91.3 88.9 80.6 92.9 95.2 101.7 81.4 94.5 85.2 91.0 87.5 132.4 131.3 120.7 130.4 135.9 148.5 125.6 160.2 123.6 128.0 133.6 167.4 145.2 151.1 129.8 144.5 149.7 172.0 134.5 198.4 129.1 142.8 148.1 193.9 157.5 167.0 136.6 150.7 162.9 203.9 141.0 238.3 137.5 156.0 158.9 209.3 162.4 177.2 140.7 159.7 174.2 225.2 148.3 282.8 144.0 173.5 173.3 224.4 168.0 185.5 144.9 173.0 184.4 247.3 155.5 314.5 150.0 188.3 189.7 238.8 176.9 194.7 152.0 184.9 196.1 267.3 164.9 347.3 157.7 204.8 212.4 254.6 182.7 202.3 157.3 191.8 207.7 279.2 172.5 362.1 161.5 224.6 228.1 273.5 145.0 168.1 98.9 107.8 144.9 179.9 124.4 208.4 113.0 148.0 138.1 182.2 142.2 158.8 95.0 142.4 162.6 92.9 116.3 165.7 200.9 128.1 236.9 108.7 163.5 156.1 189.0 141.8 169.4 93.5 117.6 173.2 205.9 132.1 244.1 142.4 126.5 104.3 70.2 93.9 141.8 129.5 148.7 94.3 128.4 146.2 141.3 144.5 111.9 129.8 104.9 164.9 86.4 T o ta l h o u rs United S ta te s .............................................................. Canada ........................................................................ Japan ........................................................................... B e lgium ........................................................................ D e nm a rk...................................................................... France .......................................................................... G erm any...................................................................... Ita ly ............................................................................... N etherlands................................................................. N o rw ay......................................................................... S w e d e n ........................................................................ United K ingdo m .......................................................... 102.8 138.4 101.0 124.4 127.3 101.8 100.6 104.6 101.4 101.0 101.2 101.6 95.4 107.6 104.3 105.9 101.5 99.0 103.3 101.7 104.3 99.0 60.0 55.1 53.5 56.1 52.1 67.5 43.7 60.5 54.5 54.2 47.5 85.1 78.9 84.2 79.0 81.0 76.5 84.5 70.2 82.2 77.2 77.3 76.0 92.1 90.3 90.7 89.5 90.4 88.7 91.3 84.2 91.9 91.5 88.3 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 71.0 63.4 52.3 57.8 55.4 52.5 67.4 36.0 60.7 46.4 47.7 38.9 73.7 66.5 66.4 67.9 67.4 63.4 80.3 48.1 74.3 57.6 57.2 49.8 91.7 89.1 96.0 91.2 85.6 86.5 93.8 77.1 95.4 79.7 77.1 80.2 94.9 95.3 96.2 93.9 92.1 93.3 94.6 85.1 96.0 89.1 90.0 89.1 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 117.0 116.2 98.8 105.0 115.7 117.0 107.3 121.9 104.1 108.2 108.3 134.1 130.6 133.7 98.4 109.4 71.0 64.5 39.1 41.7 44.4 46.7 42.9 50.6 41.2 34.5 41.1 53.5 73.7 70.6 65.6 62.7 67.2 70.2 70.4 73.1 65.6 53.4 58.7 70.0 91.7 93.1 86.7 89.1 89.6 99.3 88.7 104.3 92.8 81.4 83.2 94.9 102.7 86.9 87.2 91.5 96.1 87.3 90.5 89.1 86.9 92.3 92.1 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 117.0 105.4 121.3 128.3 132.0 135.2 135.9 129.5 127.4 113.8 112.9 163.1 130.6 121.5 116.8 134.3 129.0 156.4 147.9 141.4 134.1 129.3 125.3 219.2 104.3 88.0 88.6 86.1 101.2 86.0 84.5 69.0 C o m p e n s a tio n p e r h o u r United S ta te s .............................................................. Canada ........................................................................ Japan ........................................................................... B e lgium ........................................................................ D e nm a rk...................................................................... France .......................................................................... G erm any...................................................................... Ita ly ............................................................................... N etherlands................................................................. Nonway......................................................................... S w e d e n ........................................................................ United K ingdo m .......................................................... 36.5 27.5 8.9 13.8 12.6 88.8 120.1 137.4 U n it la b o r c o s ts : 121.0 134.3 115.7 137.0 108.5 120.0 118.6 164.5 140.1 146.7 148.7 170.0 102.0 101.2 113.2 131.1 151.0 111.4 142.2 167.2 125.2 184.0 115.2 142.1 136.3 184.4 121.2 158.9 110.4 133.4 130.9 181.2 112.1 155.4 191.6 125.8 217.8 106.8 152.0 144.8 183.9 111.6 180.5 167.3 196.1 U n it la b o r c o s ts : Data not available. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 102.0 140.1 130.0 123.8 109.6 110.3 136.4 124.9 123.2 108.9 123.6 115.4 210.2 148.7 146.3 108.8 87.2 102.3 124.9 119.7 119.9 105.8 117.1 96.9 184.8 145.0 144.9 111.5 75.5 95.1 116.1 113.1 142.2 130.3 107.2 69.5 90.1 107.8 102.6 110.0 101.1 121.1 109.5 81.6 99.1 78.2 140.9 109.6 80.4 101.3 81.1 140.5 97.1 107.9 80.4 158.3 MONTHLY LABOR REVIEW 48. April 1988 • Current Labor Statistics: Illness and Injury Data Occupational injury and illness incidence rates by industry, United States Incidence rates per 100 full-time workers 2 Industry and type of case 1 1978 1979 1980 1981 1982 1983 1984 1985 1986 P R IV A T E S E C T O R 3 Total c a s e s ............. Lost workday cases Lost w o rkda ys........ 9.4 4.1 63.5 9.5 4.3 67.7 8.7 4.0 65.2 8.3 3.8 61.7 7.7 3.5 58.7 11.6 5.4 80.7 11.7 5.7 83.7 11.9 5.8 82.7 12.3 5.9 82.8 5.9 6.1 12.0 6.1 86.0 90.8 11.5 6.4 143.2 150.5 10.5 5.4 137.3 14.6 7.6 3.4 58.5 7.9 3.6 64.9 7.9 3.6 65.8 11.4 5.7 91.3 11.2 90.7 5.6 93.6 8.4 4.5 125.1 9.7 5.3 160.2 8.4 4.8 145.3 7.4 4.1 125.9 14.8 6.3 118.2 15.5 6.9 128.1 15.2 128.9 15.2 6.9 134.5 15.4 6.9 121.3 6.8 6.6 120.4 122.7 8.0 3.7 63.4 A g r ic u ltu r e , fo r e s tr y , a n d fis h in g 3 Total c a s e s ......................................................................... Lost workday c a s e s .......................................................... Lost w o rkda ys.................................................................... 11.8 11.9 M in in g Total c a s e s ............................................... Lost workday c a s e s ................................ Lost w o rkda ys.......................................... 11.4 11.2 6.8 6.5 163.6 146.4 15.7 6.5 117.0 15.1 6.3 113.1 11.6 6.2 C o n s tr u c tio n Total c a s e s ...................................................... Lost workday c a s e s ...................................... Lost w o rkdays................................................. General building contractors: Total c a s e s ...................................................... Lost workday c a s e s ...................................... Lost w o rkda ys................................................ Heavy construction contractors: Total cases................................................ Lost workday c a s e s ...................................... Lost w o rkda ys................................................ Special trade contractors: Total c a s e s ...................................................... Lost workday c a s e s ...................................... Lost w o rkdays................................................ 16.0 6.4 109.4 120.4 15.9 6.3 105.3 15.5 6.5 113.0 6.1 14.1 5.9 14.4 6.8 111.2 107.1 112.0 113.0 16.6 6.7 123.1 16.3 6.3 117.6 14.9 106.0 15.1 5.8 113.1 122.4 14.9 6.4 131.7 14.5 6.3 127.3 14.7 6.3 132.9 16.0 6.9 124.3 15.5 6.7 118.9 15.2 14.7 6.6 111.0 6.6 6.2 119.3 118.6 14.8 6.4 119.0 15.8 7.1 130.1 15.4 7.0 133.3 15.6 7.2 140.4 13.2 5.6 84.9 13.3 5.9 90.2 11.5 5.1 82.0 10.2 10.0 10.6 5.4 86.7 4.4 75.0 4.3 73.5 4.7 77.9 10.4 4.6 80.2 4.7 85.2 22.6 11.1 20.7 178.8 175.9 18.6 9.5 171.8 17.6 9.0 158.4 16.9 8.3 153.3 18.3 9.2 163.5 19.6 9.9 172.0 18.5 9.3 171.4 18.9 9.7 177.2 17.5 6.9 95.9 17.6 7.1 99.6 16.0 15.1 13.9 5.5 85.6 14.1 5.7 83.0 15.3 6.4 101.5 15.0 6.3 100.4 15.2 6.3 103.0 16.8 7.8 126.3 133.7 17.0 7.5 123.6 134.7 16.6 6.2 110.9 15.8 16.2 6.8 16.3 15.1 6.0 6.0 115.7 6.2 15.4 6.2 6.8 15.2 14.9 M a n u fa c tu r in g Total c a s e s ....................................................... Lost workday c a s e s ....................................... Lost w o rkda ys................................................. 12.2 10.6 D u r a b le g o o d s Lumber and wood products: Total c a s e s ....................................................... Lost workday cases ........................................ Lost w o rkdays.................................................. Furniture and fixtures: Total c a s e s ....................................................... Lost workday c a s e s ........................................ Lost w o rkda ys.................................................. Stone, clay, and glass products: Total c a s e s ....................................................... Lost workday c a s e s ........................................ Lost w o rkda ys.................................................. Primary metal industries: Total c a s e s ....................................................... Lost workday c a s e s ........................................ Lost w o rkda ys.................................................. Fabricated metal products: Total c a s e s ........................................................ Lost workday c a s e s ........................................ Lost w o rkda ys................................................... Machinery, except electrical: Total c a s e s ........................................................ Lost workday c a s e s ........................................ Lost w orkdays................................................... Electric and electronic equipment: Total c a s e s ........................................................ Lost workday c a s e s ........................................ Lost w o rkda ys................................................... Transportation equipment: Total c a s e s ........................................................ Lost workday c a s e s ........................................ Lost w o rkdays.................................................. Instruments and related products: Total c a s e s ........................................................ Lost workday c a s e s ........................................ Lost w o rkdays................................................... Miscellaneous manufacturing industries: Total c a s e s ........................................................ Lost workday c a s e s ........................................ Lost w o rkda ys................................................... See footnotes at end of table. 114 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 19.3 10.8 16.8 8.0 17.3 8.1 6.6 6.2 97.6 91.9 15.0 7.1 128.1 13.0 13.1 13.6 122.2 6.1 112.2 6.0 112.0 6.6 120.8 13.9 6.7 127.8 13.6 6.5 126.0 15.2 7.1 128.3 14.4 6.7 121.3 12.4 5.4 12.4 5.4 103.4 13.3 12.6 13.6 6.1 101.6 5.7 113.8 125.5 18.5 15.3 6.4 102.5 10.7 4.2 14.1 6.9 112.4 19.9 8.7 124.2 118.4 17.5 7.5 109.9 14.4 5.4 75.1 14.7 5.9 83.6 13.7 5.5 81.3 12.9 5.1 74.9 8.7 3.3 50.3 8.6 8.0 3.4 51.9 3.3 51.8 11.5 5.1 78.0 11.6 10.6 5.5 85.9 4.9 82.4 8.0 6.9 8.0 15.1 115.3 96.5 16.1 6.7 104.9 66.0 9.8 3.6 58.1 10.7 4.1 65.8 7.4 3.1 48.4 6.5 2.7 42.2 2.6 6.8 2.8 41.4 45.0 9.8 4.6 78.1 9.2 4.0 72.2 8.4 3.6 64.5 68.8 6.1 6.3 9.3 4.2 16.3 6.9 16.0 110.1 115.5 10.8 4.2 69.3 10.7 4.2 72.0 6.4 2.7 45.7 6.4 2.7 49.8 9.0 3.9 71.6 9.6 4.1 79.1 5.3 2.3 42.2 7.2 6.8 5.2 2.7 41.8 5.6 2.3 37.0 5.4 2.8 2.1 2.2 2.2 40.0 6.5 2.7 39.2 5.2 2.6 37.0 35.6 37.5 37.9 11.8 11.7 4.7 67.7 10.9 4.4 67.9 10.7 4.4 68.3 9.9 4.1 69.9 9.9 4.0 66.3 10.5 4.3 70.2 9.7 4.2 73.2 4.5 66.4 6.1 6.8 10.2 4.3 70.9 48. Continued— Occupational injury and illness incidence rates by industry, United States Incidence rates per 100 full-time workers 2 Industry and type of case 1 1979 1978 1981 1980 1984 1983 1982 1986 1985 N o n d u r a b le g o o d s Food and kindred products: 16.5 16.7 16.7 8.1 8.1 8.0 131.6 138.0 137.8 6.5 3.0 42.8 7.7 3.2 51.7 7.3 3.0 51.7 6.7 2.5 45.6 7.6 7.4 8.0 2.8 2.8 53.8 51.4 3.0 54.0 7.5 3.0 57.4 7.8 3.1 59.3 34.9 35.0 36.4 6.4 2.4 40.6 6.7 2.5 40.9 6.7 2.2 6.0 2.1 6.7 2.7 49.4 11.6 10.6 10.0 108.4 12.7 5.8 112.3 5.4 103.6 4.9 99.1 4.5 90.3 10.4 4.7 93.8 4.7 94.6 10.5 4.7 99.5 7.1 3.1 45.1 6.9 3.1 46.5 6.7 3.0 47.4 6.6 2.8 6.6 45.7 2.9 44.6 6.5 2.9 46.0 6.3 2.9 49.2 6.5 2.9 50.8 7.8 3.3 50.9 7.7 3.5 54.9 6.8 6.6 3.1 50.3 3.0 48.1 5.7 2.5 39.4 5.5 2.5 42.3 5.3 2.4 40.8 5.1 2.3 38.8 6.3 2.7 49.4 7.9 3.4 58.3 7.7 3.6 62.0 7.2 3.5 59.1 6.7 2.9 51.2 5.3 2.5 46.4 5.5 2.4 46.8 5.1 2.4 53.5 5.1 2.4 49.9 7.1 3.2 67.5 17.1 17.1 6.2 127.1 100.9 101.4 13.6 6.4 104.3 13.4 6.3 107.4 14.0 6.0 125.5 14.6 7.2 117.4 13.0 8.2 15.5 7.4 118.6 12.7 8.1 118.2 11.7 4.7 72.5 11.5 4.9 76.2 11.7 5.0 82.7 11.5 5.1 82.6 9.9 4.5 86.5 10.0 4.4 87.3 10.5 4.7 94.4 10.3 4.6 88.3 10.5 4.8 83.4 9.4 5.5 104.5 9.0 5.3 8.5 4.9 96.7 8.2 8.8 8.6 8.2 100.6 4.7 94.9 5.2 105.1 5.0 107.1 102.1 7.4 3.2 48.7 7.3 3.1 45.3 7.2 3.1 45.5 7.2 3.1 47.8 7.4 3.3 50.5 7.4 3.2 50.7 7.7 3.3 54.0 129.3 16.5 7.9 131.2 3.9 56.8 7.2 3.2 44.6 8.8 3.2 59.2 17.8 16.7 8.6 8.0 130.7 8.1 8.2 3.8 45.8 19.4 8.9 132.2 19.9 9.5 141.8 18.7 9.0 136.8 8.7 4.0 58.6 9.3 4.2 64.8 10.2 3.4 61.5 9.7 3.4 61.3 9.1 3.3 62.8 6.5 6.5 6.4 6.3 2.2 2.2 2.2 32.4 34.1 13.5 5.7 103.3 13.5 7.0 2.9 43.8 Tobacco manufacturing: Textile mill products: Apparel and other textile products: 2.6 44.1 Paper and allied products: 6.0 10.2 Printing and publishing: Chemicals and allied products: Petroleum and coal products: Rubber and miscellaneous plastics products: 6.6 Leather and leather products: T r a n s p o r t a t io n a n d p u b lic u tilitie s 10.1 10.0 5.7 102.3 5.9 107.0 7.9 3.2 44.9 8.0 3.4 49.0 8.9 3.9 57.5 8.8 8.2 4.1 59.1 3.9 58.2 7.7 3.6 54,7 7.1 3.4 52.1 7.0 3.2 50.6 7.2 3.5 55.5 7.2 3.5 59.8 7.2 3.6 62.5 7.7 3.1 44.7 7.1 2.9 44.5 7.1 2.9 41.1 7.2 2.9 42.6 7.3 3.0 46.7 7.5 3.2 48.4 7.5 3.1 47.0 7.8 3.2 50.5 2.1 2.0 2.0 2.0 .9 13.2 12.8 1.9 .9 13.6 2.0 .8 11.6 .9 12.5 2.0 .8 12.2 1.9 .9 13.3 .9 15.4 .9 17.1 5.5 2.4 36.2 5.5 2.5 38.1 5.2 2.3 35.8 5.0 2.3 35.9 4.9 2.3 35.8 5.1 2.4 37.0 5.2 2.5 41.1 5.4 45.4 5.3 2.5 43.0 4.8 W h o le s a le a n d re ta il t r a d e Wholesale trade: Retail trade: 7.5 2.8 39.7 F in a n c e , in s u r a n c e , a n d r e a l e s ta te 2.1 .8 S e r v ic e s 1 Total cases include fatalities. 2 The incidence rates represent the number of injuries and illnesses or lost workdays per 100 full-time workers and were calculated as: (N/EH) X 200,000, where: N = number of injuries and illnesses or lost workdays. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2,6 EH = total hours worked by all employees during calendar year. 200,000 = base for 100 full-time equivalent workers (working 40 hours per week, 50 weeks per year.) 3 Excludes farms with fewer than 11 employees since 1976. 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