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MONTHLY LABOR REVIEW : U.S. Department of Labor Bureau of Labor Statistics February 1989 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis In this issue: Employment and Unemployment in 1988 Japan and the United States: a comparison U.S. DEPARTMENT OF LABOR Ann McLaughlin, Secretary Regional Commissioners for Bureau of Labor Statistics Janet L. Norwood, Commissioner 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 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. Region II—New York: Samuel M. 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Hirabayashi 71 Stevenson Street, P.O Box 3766 San Francisco, CA 94119 Phone: (415) 995-5605 IX American Samoa Arizona California Guam Hawaii Nevada Trust Territory of the Pacific Islands X Alaska Idaho Oregon Washington I research MONTHLY LABOR REVIEW library FEBRUARY 1989 VOLUME 112, NUMBER 2 ! Federal Reserve Bank of St. L o u is Henry Lowenstern, Editor-in-Chief Robert W. Fisher, Executive Editor MAR 2 2 1989 W. J. Howe, W. Parks, II 3 Labor market completes sixth year of expansion Civilian and nonagricultural employment continued to rise; the unemployment rate of 5.3 percent in the fourth quarter was the lowest since second-quarter 1974 Eva Jacobs and others 15 Families of working wives spending more on services, nondurables When a wife becomes a second earner, families spend more on work-related and time-saving items, such as child care and food away from home John E. Buckley 24 Variations in holidays, vacations, and area pay levels Higher paying localities often report more liberal leave provisions, but factors other than pay also are important in shaping leave policy R. W. Bednarzik, C. R. Shiells 31 Comparing U.S. and Japanese labor markets Both countries are flexible in how they react to structural changes in the labor market, with each using different methods and programs to adjust to such changes rather quickly J. W. Ferris, V. L. Klarquist https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 43 Productivity in the carburetors, pistons, and valves industry Growth in output per employee hour in the carburetors, pistons, and valves industry has been substantially below that for all manufacturing; the industry has felt the effects of weak demand REPORTS Melvin Brodsky 47 oecd social ministers focus on rising pension, health costs DEPARTMENTS 2 Labor month in review 47 49 51 55 Foreign labor developments Major agreements expiring next month Developments in industrial relations Current labor statistics Labor Month In Review OLDER W ORKERS. The U S . Department of Labor reported to the Congress on older persons who experience job market problems. The following are highlights from the report, which was prepared by Philip L. Rones and Diane E. Herz of the Bureau of Labor Statistics. Unemployment. Workers age 55 and over consistently have the lowest rates of unemployment of any labor force group. However, the data do not fully depict the extent of their problems in the job market, especially as compared to those of other groups. For example, by definition, workers who retire after unsuccessfully seeking employment are out of the labor force. Thus, they are not counted among the unemployed. Older unemployed workers under the age of 62, like their younger counterparts, have strong labor force attachments. These persons typically look for full-time rather than part-time jobs. Until age 62, when they become eligible for Social Security retirement benefits, these workers rarely can afford to retire or to take only part-time jobs; thus, they generally continue seeking full time employment until they find it. By contrast, unemployed persons age 62 and over—particularly those over 65—often look for part-time or temporary jobs, search for work less intensively than younger persons, and end their job search by retiring rather than finding a job. The latter option is made possible by the availability of retirement benefits, although the amount of such benefits may be quite small. Commonly available data show that the average number of weeks of unemployment increases with age, and some analysts have concluded that older workers have a more difficult time finding a job than do younger ones. However, this conclusion is problematic because (1) other sources of data on the duration of unemployment suggest that younger persons may require about as much time as older ones to find a job, and (2) the data reflect not only employers’ demand for specific types of workers, but also the available supply of workers. Older workers may seek different work schedules or wage arrangements than younger ones, or they may have better nonwork (usually retirement) options. These differences affect whether, how https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis long, and how intensely individuals will look for work. Permanent displacement from jobs probably occurs about as frequently to older workers as to others. Much permanent job loss is the result of plant closings and other actions from which seniority affords little or no protection. Also, large-scale layoffs occur most often in declining industries, in which workers are older, on average, than they are in growing industries. When an older worker loses a job, that worker typically gives up a considerable amount of tenure and, along with the tenure, a substantial pay premium. If the individual must find employment in a different occupation, the wages he or she will receive will often be at the level of an “ in experienced” applicant for the position. On the other hand, a substantial proportion of job losers do obtain jobs with wages that match or even exceed the wages in their lost jobs. Displacement late in one’s career, however, can lead to premature retirement, which is often seen as a socially acceptable alternative to prolonged unemployment. Such job-loss-induced withdrawal from the labor force can be dramatically higher when the national jobless rate is high. Older men who lose jobs tend to experience greater losses of earnings than do older women upon reemployment. This is because the men’s wages were typically far higher to begin with. For example, when women lose factory jobs, these jobs are typically in textiles, apparel, or leather products industries, in which average wages for production workers are about $6 to $7 per hour. The factory jobs men lose are more often in industries such as steel, machinery, or automobile manufacturing, in which average wages range from $10 to $15 per hour. Older women who are reentering the labor force experience problems related to outdated skills, lack of confidence, and lack of personal contacts that might lead to employment. The principal labor market problem facing reentrants is the same as that confronting women already holding jobs— very low earnings compared to those of men. Barriers to employment. Older persons face a number of barriers to employment. In many jobs, they are presented with a choice between full-time employment and complete retirement. While many retirees would prefer a phased retirement, employers generally prefer full-time workers, and pension plan provisions make continued employment with a reduced schedule impossible or impractical. Thus, those older employees who would like to continue working beyond normal retirement age, and who would prefer to stay with the same employer or to have a reduced schedule, are often unable to do so. Even when an older worker is able to secure a satisfactory working arrangement, continued employment beyond the age of pension eligibility often does not pay. Private pension policies and Social Security regulations frequently stipulate that added earnings from continued employment are to be off set by pension losses. As a result, many workers do not find it financially worthwhile to work beyond the normal age of retirement. Even those older workers who seek only part-time work are affected by pension and Social Security regulations. Persons who choose to continue working part time after receiving a pension often limit their hours and, hence, their earnings, so as to avoid exceeding the Social Security exempt amount. Part-time work is often not a viable alter native to complete retirement, as pay is often much lower than that which experienced workers are used to receiving. This does not necessarily reflect age discrimination; rather, it applies to workers of all ages and results largely from the relatively high hourly costs and low level of skills usually associated with part-time, as opposed to full-time, jobs. The Social Security Amendments of 1983 contained a number of provisions that were designed to eliminate some of the system’s disincentives to work. Four in particular were noteworthy: an increase in the normal retirement age, an increase in the early retirement penalty, an increase in the credit for delayed retirement, and a decrease in the with holding rate under the earnings test. How ever, most analysts believe that the effect of these changes on retirement age will be minimal. Single copies of the Labor Department publication, Labor Market Problems of Older Workers, based largely on the report to Congress, are available from Inquiries and Correspondence, Bureau of Labor Statistics, Washington, DC 20212. □ Labor market completes sixth year of expansion in 1988 Both civilian and nonagricultural employment continued to rise; the 5.3-percent unemployment rate in the fourth quarter was the lowest since the second quarter o f 1974 Wayne J. H o w e and W il l ia m Parks II L abor m arket perform ance by m ost measures remained healthy in 1988, as em ploym ent gains continued and the civilian unem ploym ent rate fell to a 14-year low. The economy com pleted its sixth year of expansion, the sec ond longest period of sustained grow th since W orld W ar II and the longest peacetime expansion. Following are highlights of em ploym ent and unem ploym ent developments in 1988: • E m ploym ent grow th continued during the year, as m easured by both the C urrent Em ploym ent Statistics survey ( c e s ) — a survey of m ore than 300,000 business establishm ents— and the C urrent Population Survey ( c p s ) — a survey of nearly 56,000 households. The es tablishm ent survey showed an increase of 3.7 million persons, or 3.5 percent, while the household survey showed an increase of 2.4 million persons, or 2.1 per cent. (See box on page 4.) • The goods-producing sector showed significant job gains for the second straight year. W ithin that sector, both construction and manufacturing registered over-the-year increases. The service-producing sector continued to grow at a rapid pace, with services and wholesale trade increasing the fastest. • A fter declining early in 1988, the civilian worker unem ploym ent rate fluctuated around 5.5 percent for m uch Wayne J. Howe and William Parks II are economists in the Office of Employment and Unemployment Statistics, Bureau of Labor Statistics. The authors are grateful to James Markey, Diane Herz, and Thomas Nardone for their assistance in gathering data for the article. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis of the year before edging to 5.3 percent in the fourth quarter. The rate was then six-tenths of a percentage point below th at of a year earlier and at its lowest m ark since the second quarter of 1974. All m ajor age and sex groups benefited from the unem ploym ent decline. • All three m ajor racial and ethnic groups shared in 1988’s job m arket improvements. Each group recorded a drop in its unem ploym ent rate, and em ploym ent growth, particularly strong for Hispanics, continued. • The num ber of persons working part time for economic reasons declined in 1988, but their proportion of total employm ent still rem ained above w hat it was prior to the recessions early in the decade. The num ber of dis couraged workers showed little change over the year. Industry developments N onagricultural payroll employment, as m easured by the Bureau of Labor Statistics’ business establishm ent survey, continued to show a healthy employm ent gain throughout 1988. A t 107.3 million in the fourth quarter of 1988, nonfarm employm ent increased by about 3.7 m il lion over the year. (See table 1.) (All over-the-year com parisons are made using fourth-quarter averages, unless otherwise noted.) This m arks the second straight year in which nonfarm job grow th exceeded 3 million. As has typically been the case, em ploym ent rose at a faster rate in the service-producing sector than it did in the goods-producing sector, accounting for 4 of 5 of the net job gains during 1988. Services and wholesale trade had the fastest rates of em ploym ent grow th in this sector. 3 M O N T H L Y LA B O R R EV IEW February 1989 • (See chart 1.) In addition, following declines in 1985 and 1986, the goods-producing sector showed a significant job gain for the second straight year. Both construction and m anufacturing continued to expand, while the num ber of mining jobs declined. The service-producing sector continued to add jobs at about the same rapid pace that has prevailed throughout the 6-year expansion, with em ploym ent in the sector in creasing by 2.9 million, or 3.7 percent. The services divi sion recorded the largest over-the-year em ploym ent gain, adding 1.3 million jobs, or alm ost 4 of every 10 additional jobs. (See chart 1.) This division is a heterogeneous mix that includes such industries as business, health, educa tio n al, social, and legal services; h otels and m otels; entertainm ent; and auto repair. W hile the services divi Employment and Unemployment in 1988 sion as a whole continued to grow at the brisk pace experienced throughout the expansion, its two largest in dustries, business and health services, showed somewhat different over-the-year trends. Business services exhibited a slightly lower rate of em ploym ent grow th than in previous years, while the pace accelerated sharply in health services. A decline in the rate of employment growth in personnel supply services, particularly in tem porary help, explains some of the drop off in the pace of business services employment growth. However, the other dynam ic business services industry— com puter and data processing services— continued to grow at a fast pace. M uch of the recent growth has been in the com puter program m ing and software services com po nent. This includes firm s w hich provide analysis and Examining the divergences in the CPS and CES W hile it is com m on for the household and payroll surveys to have different patterns of grow th or even occasionally move in different directions in the short run, longer periods of m ajor divergence are unusual. Between the fourth quarters of 1987 and 1988, the establishm ent survey registered a job gain th at ex ceeded the rise in civilian em ploym ent by nearly 1.3 million. The two surveys do m easure different things; for instance, the household survey includes among the em ployed agricultural workers, the self-employed, private household workers, workers on leave w ithout pay, and persons working without pay in a family business for 15 hours or more. The establishment survey does not cover such employment. These definitional differences, how ever, do not explain the sudden divergence in the two surveys. A lthough there is no direct evidence to explain the divergent survey results, several possibilities may ac count for some of the differences: — The household survey estimates are based on cu r rent estimates of the population which are developed from the 1980 census, inflated to account for births, deaths, and m igration into and out o f the U nited States. If the population estimates for the inter-census period have been too low (as they were found to be between 1970 and 1980), then the em ploym ent esti m ates will have been similarly understated. The most problem atical aspect of population estim ation is ac counting for illegal imm igration. The Census Bureau currently adds 200,000 per year to their population estim ate to account for illegal im m igration, but if this estim ate is too conservative, actual population growth (and the em ploym ent totals on which they are based) may have been underestim ated. The establishm ent sur vey em ploym ent estimates, in contrast, are “rebench- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis m arked” each year based on counts of all employees from adm inistrative records obtained through the un employment insurance system. — Because the establishm ent survey counts jobs, not people, persons holding more than one job are counted at each job. Thus, if an increasing num ber of workers were holding m ore than one job, business payrolls would register the resultant job gains while the house hold count of employed persons would not. In fact, between 1980 and 1985, the last 2 years in which the c p s m easured the incidence of multiple-jobholding, the rate jum ped considerably, particularly among women. If that trend has continued since 1985, it may account for some of the survey differences. (A dditional data on m ultiple jobholding is scheduled to be collected in May of 1989, but results will not be available until around year’s end.) — The establishm ent survey sample does not have a systematic rotation of sample units, but replaces re porters as needed. This tends to underrepresent newly formed establishments. Because these firms might ac count for a substantial portion of job growth, some estim ate of their contribution to employment growth m ust be included in the c e s employment estimate. Otherwise, the c e s estimates would consistently fall below those of the benchm ark count, which would in clude new firms. Because this “bias adjustm ent” is based on past patterns of job creation, at any point in time it may under- or overestimate the contribution of new businesses to job growth. The process is particu larly likely to result in an overstatem ent of grow th as the economy approaches a business cycle peak, and to do the opposite at a trough. U nfortunately, a final esti m ation of the difference between recent c e s em ploy ment growth and that registered by the benchm ark will not be known until m id-1990. Chart 1. Employment increases by major Industry division, fourth -quarter 1 9 8 7 -8 8 Thousands Percent 7 6 5 4 3 2 1 0 -1 -2 0 0 -2 200 600 1 ,0 0 0 1 .4 0 0 Construction Services Wholesale trade Retail trade Transportation and public utilities Manufacturing Government Finance, insurance, and real estate Mining design for com puter systems, development of com puter program s or systems, com puter program m ing services, and com puter-related systems engineering. The rise in health services em ploym ent has been driven by an increasingly aging population requiring more health care, the expansion of outpatient care services, and the grow ing w illingness of health insurance program s to cover hom e health care. W ithin health services, employ m ent grow th was widespread. The largest num ber of job gains occurred, as in the past, in hospitals, where almost half of all health services workers are employed. The larg https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis est rates of employment growth, both in 1988 and in the last 6 years, occurred in outpatient care facilities, where employment has risen by m ore than 80 percent over the expansion and, to a lesser extent, in medical and dental labs and offices of physicians. Retail trade added 635,000 jobs in 1988, a growth rate of 3.4 percent. Retail sales were strong throughout much of the year. However, retailers’ profits were weak, as overstocking and subsequent discounting depressed performance. Employment growth among the various retail industries was mixed. Following a slack year in 1987, food stores 5 M O N T H L Y LA B O R R E V IE W February 1989 Employment and Unemployment in 1988 • grew the fastest of any component. Consumers were appar ently undaunted by rising food prices following the sum in general merchandise stores expanded rapidly in the first quarter of 1988, was unchanged in the second quarter, and then declined in the last half of the year (on a seasonally adjusted basis). Elsewhere, em ploym ent in eating and drinking places continued to grow at a steady pace; em ployment in radio, television, and music stores, which had mer’s drought, as food sales were up significantly in 1988. Auto dealers and service stations, which have both been strong throughout the recovery, also experienced substan tial employment growth throughout the year. Employment Employees on nonagricultural payrolls by industry, seasonally adjusted, quarterly averages, 1982 oo CO Table 1. [In thousands] 1982 1984 1986 1987 1988 Industry IV I II III |Vp Total......................................................................... 88,717 95,868 100,347 103,683 104,670 105,609 106,478 107,335 Total private................................................................ 72,893 79,710 83,496 86,518 87,406 88,263 89,071 89,793 Goods-produclng.................................................................... 22,980 24,935 24,443 25,116 25,260 25,498 25,650 25,827 Mining ................................................................................. Oil and gas extraction ..................................................... 1,029 651 956 609 715 396 737 419 731 416 739 424 738 422 729 407 Construction........................................................................ General building contractors........................................... 3,837 959 4,499 1,187 4,843 1,302 5,089 1,347 5,142 1,375 5,261 1,402 5,345 1,402 5,396 1,404 Manufacturing..................................................................... 18,115 19,481 18,885 19,290 19,388 19,498 19,567 19,706 Durable goods ................................................................ Lumber and wood products.......................................... Furniture and fixtures.................................................. Stone, clay, and glass products................................... Primary metal Industries............................................... Blast furnaces and basic steel products................... Fabricated metal products........................................... Machinery, except electrical........................................ Electrical and electronic equipment............................. Transportation equipment............................................ Motor vehicles and equipment................................. Instruments and related products............................... Miscellaneous manufacturing...................................... 10,484 596 425 558 824 344 1,349 2,051 1,953 1,662 659 699 367 11,631 703 492 593 843 317 1,483 2,236 2,248 1,931 877 721 381 11,137 723 501 581 729 255 1,404 2,002 2,102 2,037 868 698 360 11,353 749 531 585 768 279 1,428 2,062 2,101 2,048 855 703 378 11,403 755 535 584 770 280 1,437 2,092 2,113 2,031 837 705 381 11,484 757 536 586 777 281 1,450 2,122 2,117 2,047 850 709 382 11,550 754 539 587 787 281 1,461 2,155 2,124 2,043 854 716 385 11,634 767 541 591 795 282 1,474 2,184 2,129 2,049 860 721 383 Nondurable goods........................................................... Food and kindred products.......................................... Tobacco manufactures................................................ Textile mill products..................................................... Apparel and other textile products.............................. Paper and allied products............................................ Printing and publishing................................................. Chemical and allied products....................................... Petroleum and coal products....................................... Rubber and miscellaneous plastics products.............. Leather and leather products....................................... 7,631 1,628 68 729 1,139 654 1,271 1,055 200 679 209 7,850 1,608 64 726 1,155 682 1,404 1,055 188 792 176 7,748 1,616 57 709 1,094 676 1,475 1,017 165 797 143 7,937 1,635 53 732 1,107 683 1,527 1,041 167 845 145 7,985 1,648 54 731 1,105 686 1,543 1,049 165 857 147 8,014 1,645 53 727 1,099 689 1,559 1,060 166 869 146 8,017 1,631 52 722 1,091 690 1,571 1,069 167 878 146 8,072 1,658 52 723 1,091 691 1,585 1,073 168 886 145 Service-producing................................................................... 65,737 70,933 75,904 78,567 79,410 80,111 80,828 81,509 Transportation and public utilities....................................... Transportation................................................................. Communication and public utilities.................................. 5,023 2,735 2,288 5,200 2,963 2,237 5,285 3,093 2,192 5,465 3,230 2,235 5,514 3,273 2,241 5,560 3,313 2,248 5,607 3,355 2,253 5,643 3,393 2,250 Wholesale trade................................................................. Durable goods ................................................................ Nondurable goods........................................................... 5,213 3,034 2,179 5,644 3,336 2,308 5,761 3,381 2,380 5,959 3,516 2,443 6,035 3,573 2,462 6,117 3,635 2,482 6,195 3,697 2,498 6,275 3,761 2,514 Retail trade......................................................................... General merchandise stores........................................... Food stores..................................................................... Automotive dealers and service stations........................ Eating and drinking places............................................... 15,189 2,141 2,510 1,634 4,872 16,919 2,315 2,685 1,834 5,526 18,157 2,379 2,945 1,967 6,007 18,750 2,493 2,979 2,028 6,213 19,007 2,543 3,029 2,047 6,290 19,143 2,545 3,061 2,070 6,338 19,277 2,538 3,104 2,093 6,377 19,384 2,534 3,158 2,106 6,435 Finance, insurance, and real estate................................... Finance............................................................................ Insurance ........................................................................ Real estate ..................................................................... 5,356 2,664 1,715 977 5,780 2,890 1,785 1,105 6,401 3,210 1,978 1,214 6,610 3,298 2,045 1,267 6,640 3,306 2,055 1,279 6,662 3,302 2,069 1,291 6,688 3,299 2,080 1,309 6,722 3,315 2,092 1,314 Services.............................................................................. Business services........................................................... Health services ............................................................... 19,131 3,289 5,892 21,232 4,196 6,177 23,448 4,926 6,632 24,618 5,292 6,962 24,949 5,370 7,054 25,284 5,448 7,161 25,653 5,517 7,277 25,943 5,573 7,417 Government........................................................................ Federal............................................................................ State ............................................................................... Local............................................................................... 15,824 2,745 3,641 9,438 16,158 2,830 3,771 9,557 16,851 2,899 3,925 10,026 17,165 2,973 3,991 10,200 17,264 2,972 4,017 10,275 17,346 2,957 4,047 10,342 17,407 2,965 4,072 10,370 17,542 2,990 4,075 10,477 p=preliminary. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis shown the largest percentage job growth of any retail in dustry in the past few years, was little changed in 1988. A substantial job gain in wholesale trade — 315,000— was largely attributed to an increase in the sale of durable goods, particularly among wholesalers of export-driven goods such as m achinery and equipment. Some of the strength in wholesale em ploym ent also resulted from the increased dem and for lum ber and m aterials used by the construction industry. In the last 6 years, these and other durable goods com ponents of wholesale trade have ac counted for about 70 percent of wholesale trade employ m ent gains. T ransportation was responsible for nearly all of the 180.000 em ploym ent gain in the transportation and public utilities industry. W ithin transportation, trucking and air lines continued to post gains while railroad employment was little changed. Employment in the finance, insurance, and real estate industry was up by a comparatively meager 110,000 in 1988, the smallest increase of the 6-year expansion. Insurance and real estate continued to show steady employment gains throughout the year. However, weakness in both the bank ing and securities industries— the latter largely related to the October 1987 stock market crash— held finance em ployment in check. Government em ploym ent increased by 375,000 in 1988, w hich is consistent with the rate of growth evident since 1984. V irtually all of the 1988 increase was in State and local governments. E m ploym ent in the goods-producing sector rose by 710.000 to 25.8 million by the fourth quarter of 1988. R ates of grow th within the sector varied: construction advanced sharply, m anufacturing rose m oderately, and mining declined. Construction em ploym ent rose by 305,000 during the year, the largest grow th since 1984. Job gains within con struction were unevenly distributed, as strong growth in special trades contrasted with modest gains in other in dustry com ponents. The special trades industry, which includes a wide variety of construction trades (plumbing, painting, papering, electrical work, stone masonry, and roofing), has accounted for nearly three-fourths of all new construction jobs in the 6 years of the present expansion. As a result, 3 of every 5 construction workers are now employed in special trades. Elsewhere in the industry, general building contractors experienced m oderate em ploym ent grow th in the first half of 1988, but little change during the last 6 m onths. Manufacturing added 415,000 jobs in 1988, the second straight year th at factory jobs have grown by m ore than 2 percent. These back-to-back gains m ore than offset the 3 percent em ploym ent decline in the 1985-86 period, but still left the num ber of factory jobs below 1979 levels. The rise in foreign dem and for products m anufactured in the U nited States helped spur the recent growth; the decline https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Table 2. Over-the-year employment change by major occupation, 1983-88 [In percent] 1983 1984 1985 1986 1987 1988 Total.......................... 3.5 3.3 2.0 2.3 2.8 2.1 Executive, administrative, and managerial............... 3.1 7.4 4.7 4.4 5.5 5.5 Professional specialty...... 1.4 3.2 3.9 1.6 3.6 4.1 Technicians and related support............................ 1.6 3.4 2.7 3.4 .5 4.8 Sales occupations............ 5.1 5.3 .7 5.5 .6 2.5 Administrative support, in cluding clerical................ .9 1.5 4.2 2.3 3.6 -1.5 Service occupations......... 4.9 .9 2.6 1.2 2.3 2.6 Precision production, craft, and repair........................ 10.9 3.5 1.4 .6 .7 .4 Operators, fabricators, and laborers.......................... 3.5 3.1 -1.0 .8 3.8 1.7 Farming, forestry, and fishing............................. -6.7 .8 -7.9 2.8 1.6 1.0 Occupation Note : Data based on fourth-quarter comparisons. in the value of the dollar in 1988, caused partly by con cern over the large m erchandise trade deficit, played a m ajor role. As the dollar fell, U.S. goods became cheaper and more competitive in foreign markets, while the prices of U.S. im ports rose, in turn narrow ing the trade gap. In response to the increased dem and for both durable and n o n d urable p roducts, in d u strial pro d u ctio n rose throughout the year, and factory employees worked long hours by historical standards. Average weekly hours fluc tuated between 40.9 and 41.2 hours and overtime ranged from 3.7 to 4.0 hours; these were the highest sustained levels since 1973. The capacity utilization rate in m anu facturing rose to over 84 percent, its highest level since m id -1979, and both new and unfilled orders were growing at yearend. D u ra b le g o ods m a n u fa c tu rin g e m p lo y m e n t rose steadily in 1988, accounting for more than tw o-thirds of the overall increase in factory jobs. The capacity utiliza tion rate am ong durable goods producers surged to record highs, while the rate for nondurable producers was ele vated but stable all year. Benefiting from strong exports and investment spending on business com puting equip m ent, the m achinery industry recorded a particularly large job increase of 120,000 in 1988. However, employ ment in this industry was still well below prerecession levels. Strong, though more modest, over-the-year gains were also made in the prim ary and fabricated m etals in dustries, two other industries in which recent employ ment gains failed to m atch earlier declines. N ondurable goods industries added 135,000 jobs in 1988, as the printing and publishing, chemical and allied products, and plastics products industries showed the 7 M O N T H L Y LA BO R R EV IEW February 1989 • most strength. Despite m idyear job losses resulting from 1988’s drought, over-the-year em ploym ent was up in the food products industry. The textiles and apparel indus tries each had a sm all decline in jobs in 1988, after experiencing increases in 1987. F o r a n u m b er o f years, em ploym ent changes in the m ining in d u stry have m irro red developm ents in oil and gas ex tractio n , w hich, in tu rn , are closely tied to crude oil prices. M ining em ploym ent was dow n in 1988 due to th e relatively low prices o f cru d e oil an d an in te rn a tional surplus. T his left little incentive for increased exploratio n and, hence, em ploym ent. A t y e a r’s end, oil pro d u cers w ere m aking efforts to reach an acco rd to reduce p ro d u ctio n w ith th e hopes o f bolstering prices. M ining was th e only m a jo r in d u stry division in w hich em ploym ent at th e end o f 1988 was below th e 1982 recession tro u g h level. Cyclical comparisons. Since the end of W orld W ar II, three periods of economic grow th have lasted m ore than 4 years. The present economic expansion, which completed its sixth year in Novem ber 1988, is the second longest period of sustained growth, surpassed only by the nearly 9-year expansion following the 1960-61 recession. The recovery following the 1973-75 recession lasted nearly 5 years. The three expansions are quite similar in term s of their annualized rates of employment growth, at 3.8 percent in the 1961-69 period, 3.9 percent in 1975-79, and 3.5 per cent thus far during the present expansion. The com position of employment growth by industry, however, was markedly different over the course of the three expansions, as may be seen in the first three columns of the following tabulation: Percent contribution 1961 1975 1982 - 6 9 - 8 0 -8 8 N o n a g r i c u l tu r a l t o t a l ...................... 1 00.0 100.0 100.0 Percent distribution February December 1961 1988 100.0 100.0 G o o d s - p r o d u c in g .. M in in g .................... C o n s t r u c t i o n ......... M a n u f a c tu r in g . .. 2 7 .0 - .3 4.8 2 2.5 2 7.7 1.8 7.3 18.6 15.5 - 1 .6 8.3 8.8 3 6 .6 1.3 5.3 30.1 24.1 .7 5.0 18.3 S e rv ic e -p ro d u c in g . T r a n s p o r t a ti o n a n d p u b lic u t i l i t i e s .................. W h o le s a le t r a d e .. R e ta il t r a d e ........... F in a n c e , in s u r ance, a n d real e s ta te ...................... S e r v ic e s .................... G o v e r n m e n t ......... 7 3 .0 72.3 84.5 6 3 .4 7 5.9 3.3 4.8 15.9 4 .4 6.2 18.0 3.3 5.7 22.5 7.3 5.9 15.3 5.2 5.9 18.1 5.2 2 1.9 2 1.9 6.6 26.7 10.3 7.3 36.5 9.2 5.0 14.1 15.8 6.3 2 4.2 16.3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Employment and Unemployment in 1988 The proportion of job growth made up by the goods-producing sector has been much smaller over the current expansion than it was in the two prior growth periods. Within the goods sector, the m anufacturing share of employment growth declined from 23 percent in 1961-69 to 19 percent in 1975-80, and then fell sharply to 9 percent in the current recovery. As the last two columns show, manufacturing has a much smaller share of total nonagricultural employment today than it had in 1961. The construction industry gradu ally increased its share in each successive expansion and, despite being very hard hit in recessions, has maintained a 5-percent share of total employment. The shift towards service-producing employment shows up principally in the sizable gains in the services and retail trade industries. Services has both increased its share of growth during expansions and been relatively insulated from job losses dur ing recessions. As a result, its share of employment has risen dramatically since the early 1960’s; the industry now ac counts for almost 1 of every 4 jobs. The notably small government share of employment growth in the 1975-80 recovery has been maintained in the present expansion; these smaller growth rates partly reflect the fact that, by the late 1970’s, the baby-boom generation had largely passed through the public education systems. Occupational developments The greatest rate of job grow th in 1988, as it was throughout most of the expansion, was among executives, adm inistrators, and managers. (See table 2.) Gains were also strong in the professional specialty occupations and am ong technicians and related support. Services and sales occupations showed growth of a m ore m oderate nature, but occupations concentrated in the m anufacturing and agriculture industries (production, craft, and repair w ork ers; operators, fabricators, and laborers; and employees in farming, forestry, and fishing occupations) registered very little change from the year before. Overall employment grow th during the entire expan sion has been widespread, but some occupations and industries have expanded m ore than others. C harts 2 and 3 provide employm ent grow th rates of m ajor occupa tional categories and industry divisions since the trough of the recession. Civilian employment Total civilian employment, as measured by the c p s , rose by 2.4 million in 1988 to 115.8 million. W ith the exception of the 2.8-percent employment jum p in 1987, the current economic expansion has followed a “norm al” pattern for an economic recovery— robust job gains in the first few years (average growth was 3.4 percent in the 1983-84 rebound years), succeeded by m uch sm aller gains in subsequent years (the 2.1-percent job increase in 1988 m atches the average employm ent gain in the 1985 — 86 period). Chart 2. Percentage change in employment by major occupation, fo urth -quarter 1 9 8 2 -8 8 -2 0 -1 0 --------,-------- i Percent 10 0 * 1 1 20 ' I 30 ' 1 40 ' 1 Executive, administrative, and managerial Sales Professional specialty issISs•.....: :•SSsSsäääs•••..!*•••*.¿:> Precision production, craft, and repair Technicians and related support TOTAL Services Operators, fabricators, and laborers IlliillllllÄIIII Ü ilÄ lü lÄ i Administrative support (including clerical) Farming,forestry, and fishing All three m ajor age and sex groups (adult men, adult women, and teenagers) shared in 1988’s em ployment ex pansion. (See table 3.) A dult women, who represent 45 percent of the work force, accounted for a little more than 60 percent of the over-the-year job gain, slightly more than their share of em ploym ent grow th throughout the first 5 years of the expansion. A dult men were responsible for a slightly sm aller than norm al share of the employ m ent grow th than they had experienced in recent years, and, for the third straight year, teenagers experienced a job gain. The employment-population ratio provides a useful indi cato r of the econom y’s ability to generate jobs for a growing population, as the ratio is affected by both the supply of jobs and the supply of workers. Thus, a 0.6percentage-point over-the-year rise in the employmentpopulation ratio reflects both the 2.4 million employment advance in 1988 as well as a slowdown in the rate of growth of the working-age population. As the tabulation below shows, the overall employmentpopulation ratio for all workers declined during the 1980— 82 recessionary period, but has steadily increased ever since; record highs have been established every quarter since mid-1985, including the 62.5-percent level recorded in the fourth quarter of 1988: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Total Women, Men, 20 years 20 years and over and over Teenagers F o u r t h - q u a r te r : 1979 ................. 1982 ................ 1985 ................. 6 0 .0 57.3 60.3 76.1 7 0.9 7 3 .4 48.1 48.1 5 1 .4 4 8 .5 4 1 .3 4 3 .9 1986 ................. 1987 ................ 1988 ................. 60.9 61.9 62.5 7 3 .4 7 4 .0 7 4 .2 52.4 53.5 54.5 4 4 .5 4 5 .9 47.1 The em ploym ent-population ratios for the three age and sex groups have shown different patterns since 1979. The ratio for women, which has risen. steadily since the mid-1950’s, paused in the early 1980’s and then increased by about a percentage point a year between 1983 and 1988. In contrast, the em ploym ent-population ratio for men dropped 5.2 percentage points between 1979 and 1982. It only partly recovered in 1983 and 1984, was unchanged in 1985 and 1986, and edged up in 1987 and 1988. By year’s end, the ratio for men rem ained well be low that posted in 1979, in large part attributable to a decline in work activity among those of potential retire ment age (55 and older). The ratio for teenagers followed a pattern similar to that of men during the 1979-85 pe riod. However, after edging up in 1986, it has increased even faster than the ratio for women, growing nearly 3 9 M O N T H L Y LA BO R R EV IEW February 1989 • percentage points in the last 2 years. Nevertheless, at year’s end the teenage em ploym ent-population ratio re mained below prerecession levels. Unemployment A fter declining in 1988, the rate of unem ploym ent for civilian workers fluctuated around 5.5 percent for much of the year before edging down to 5.3 percent in the fourth quarter, the lowest rate since the second quarter of 1974. Over the year, the num ber of unemployed persons fell by 530,000, to 6.6 million. Following a sharp decline in 1987 in the level and rate of unem ploym ent, both measures resum ed the pattern exhibited in 1985 and 1986 of little or no improvement. The 1988 decline in the overall civilian jobless rate was shared by teenagers, men, and women. The number of un employed teenagers fell by about 13 percent. This resulted in a 2.1-percentage-point drop in their unemployment rate, the third straight yearly decline. The improvement was largely attributable to a combination of rising demand in many services jobs that have traditionally been filled by teenagers and a dwindling supply of such young workers. At 14.6 percent in the fourth quarter of 1988, the teenage rate was the lowest since 1973. The unemployment rate for adult men declined by 0.3 percentage point to 4.7 percent in the second quarter of Employment and Unemployment in 1988 1988 and remained at that rate the rest of the year. How ever, that level was still slightly above the fourth-quarter 1979 level, as adult men were still affected by their heavy concentration in some slow-growing (or declining) indus tries and occupations. The rate for adult women slipped 0.5 percentage point to 4.7 percent at year’s end— its lowest level since the first quarter of 1970 and well below the rates recorded just before the 1980-82 recessionary period. In the 1960’s and 1970’s, unemployment rates were much higher for adult women than men. In the past few years, however, the male-female unemployment rate differential has become negligible. (See chart 4.) Im provem ent in women’s educational attainment, their increasing attach ment to year-round full-time jobs, and their greatly reduced tendency to leave the labor force for child-bearing and -rear ing have acted to lower their unemployment rates. The continuing strong employment growth in the service-pro ducing sector— particularly services, where 60 percent of jobs are held by women— has also played a role. Labor force Civilian labor force grow th was steady throughout the year, increasing by 1.8 million to 122.4 million in the fourth quarter of 1988. The year’s 1.5-percent labor force rise was som ewhat below the grow th rates in each of the previous 4 years, which ranged from 1.7 percent to 2.0 Chart 3. Percentage change In employment by major Industry division, fo urth -quarter 1 9 8 2 -8 8 Digitized for10 FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Percent Table 3. 1982-88 Selected labor force indicators by sex, age, race, and Hispanic origin, seasonally adjusted quarterly averages, [Numbers in thousands] 1982 1986 1985 1988 1987 C haracteristic I IV II III IV Total Civilian labor fo rc e ................................................................... Percent of population....................................................... Employed............................................................................. Agriculture........................................................................ Nonagriculture................................................................. Employment-population ratio............................................ Unemployed......................................................................... Unemployment ra te.......................................................... 110,959 64.1 99,120 3,471 95,649 57.3 11,839 10.7 116,183 64.9 107,981 3,087 104,894 60.3 8,202 7.1 118,548 65.4 110,428 3,163 107,264 60.9 8,120 6.8 120,552 65.7 113,475 3,191 110,282 61.9 7,077 5.9 121,045 65.8 114,152 3,212 110,940 62.1 6,893 5.7 121,352 65.8 114,688 3,139 111,549 62.2 6,664 5.5 121,881 65.9 115,202 3,126 112,076 62.3 6,678 5.5 122,388 66.1 115,843 3,223 112,620 62.5 6,545 5.3 58,375 78.8 52,553 70.9 5,822 10.0 60,594 78.1 56,943 73.4 3,651 6.0 61,670 78.2 57,885 73.4 3,785 6.1 62,270 77.9 59,147 74.0 3,123 5.0 62,522 78.0 59,448 74.1 3,074 4.9 62,721 78.0 59,756 74.3 2,965 4.7 62,843 77.9 59,905 74.3 2,938 4.7 62,971 77.8 60,017 74.2 2,953 4.7 44,112 52.9 40,127 48.1 3,985 9.0 47,733 54.9 44,684 51.4 3,049 6.4 48,993 55.7 46,062 52.4 2,931 6.0 50,214 56.5 47,605 53.5 2,609 5.2 50,501 56.6 47,963 53.8 2,538 5.0 50,604 56.6 48,122 53.8 2,483 4.9 50,919 56.8 48,423 54.0 2,496 4.9 51,449 57.2 49,022 54.5 2,427 4.7 8,472 54.3 6,440 41.3 2,032 24.0 7,856 54.3 6,353 43.9 1,503 19.1 7,885 54.2 6,481 44.5 1,404 17.8 8,069 55.1 6,723 45.9 1,345 16.7 8,022 55.0 6,742 46.2 1,281 16.0 8,026 55.1 6,810 46.7 1,216 15.2 8,119 56.0 6,874 47.4 1,244 15.3 7,969 55.2 6,804 47.1 1,165 14.6 96,623 64.4 87,452 58.3 9,171 9.5 100,530 65.2 94,486 61.3 6,044 6.0 102,413 65.7 96,345 61.8 6,067 5.9 103,758 65.9 98,527 62.6 5,231 5.0 104,255 66.1 99,204 62.9 5,050 4.8 104,555 66.2 99,691 63.1 4,864 4.7 104,900 66.2 99,909 63.1 4,991 4.8 105,286 66.4 100,436 63.3 4,849 4.6 11,503 61.5 9,155 48.9 2,348 20.4 12,473 63.0 10,573 53.4 1,900 15.2 12,709 63.2 10,893 54.1 1,816 14.3 13,167 64.3 11,546 56.4 1,621 12.3 13,137 63.9 11,512 56.0 1,626 12.4 13,090 63.4 11,530 55.8 1,559 11.9 13,240 63.8 11,751 56.7 1,489 11.2 13,342 64.1 11,831 56.8 1,510 11.3 6,826 63.5 5,783 53.8 1,043 15.3 7,804 64.6 6,968 57.7 837 10.7 8,252 66.0 7,418 59.3 834 10.1 8,724 66.9 7,981 61.2 743 8.5 8,889 67.6 8,176 62.2 713 8.0 8,914 67.2 8,127 61.3 787 8.8 9,007 67.3 8,286 61.9 721 8.0 9,119 67.6 8,409 62.3 709 7.8 M en, 20 years and over Civilian labor fo rc e ................................................................... Percent of population....................................................... Employed............................................................................. Employment-population ratio............................................ Unemployed......................................................................... Unemployment rate.......................................................... W om en, 20 years and over Civilian labor fo rc e ................................................................... Percent of population....................................................... Employed............................................................................. Employment-population ratio............................................ Unemployed......................................................................... Unemployment ra te.......................................................... Both sexes, 16 to 19 years Civilian labor fo rc e ................................................................... Percent of population....................................................... Employed............................................................................. Employment-population ratio............................................ Unemployed......................................................................... Unemployment ra te.......................................................... W hite Civilian labor fo rc e ................................................................... Percent of population....................................................... Employed............................................................................. Employment-population ratio............................................ Unemployed......................................................................... Unemployment ra te.......................................................... Black Civilian labor fo rc e ................................................................... Percent of population....................................................... Employed............................................................................. Employment-population ratio............................................ Unemployed......................................................................... Unemployment ra te.......................................................... Hispanic origin Civilian labor fo rc e ................................................................... Percent of population....................................................... Employed............................................................................. Employment-population ratio............................................ Unemployed......................................................................... Unemployment rate.......................................................... Note : Detail for race and Hispanic-origin groups will not sum to totals because data for the "other races” group are not presented and Hispanics are included in both the white and black population groups. percent. Similar to recent years, the labor force participa tion rate (the proportion of the population that is in the labor force) grew by 0.4 percent to 66.1 percent. C ontributing to the slower grow th in the labor force in 1988 was a 1.2-percent drop in the size of the teenage labor force. This fall-off coincided with the first decline in the teenage population since 1985. As a result, the teenage labor force p articip atio n rate rem ained virtually u n changed at 55.2 percent. The labor force participation https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis rates for adult men and women moved differently in 1988, as they have for many years. A 0.7-percentage-point rise in the labor force participation rate for adult women over the year carried on a long-term uptrend. In contrast, the labor force participation rate for adult men was flat at about 78 percent. This measure has slowly trended dow n ward during the four decades of the m onthly C P S , having dropped about 10 percentage points over that period. As with the em ploym ent-population ratio, this has largely 11 M O N T H L Y LA BO R R EV IEW February 1989 • been the result of persons retiring at an earlier age. Be tween 1986 and 1987, however, there was some indication th at this long-term retirem ent tren d m ight have plateaued, as participation rates for men age 55 and older were little changed over the period. D ata from 1988 show a return to the dow nw ard trend, with a 1.1-percentagepoint fall in the participation rate for men ages 55 to 64. Developments by race and ethnic origin All three race and ethnic groups shared in 1988’s labor m arket gains. Black and white workers registered similar proportional declines in their levels of unem ploym ent, al though the black unem ploym ent rate at yearend was still somewhat higher than th at of Hispanics and m uch higher than that for whites. W hile Hispanics did not register as strong an unem ploym ent level decline as the others, 1988 was another exceptional year in term s of their em ploy m ent growth. The Hispanic population has been showing very rapid grow th throughout the 1980’s, a tim e when overall popu lation grow th has been slowing. The H ispanic population surge has manifested itself in a rapidly expanding labor force, which grew by nearly 5 percent in 1988. The rate of labor force grow th for H ispanics has consistently ex ceeded that of their population, and, during the current expansion, their labor force participation rate surpassed Employment and Unemployment in 1988 that of whites for the first time. In 1988, it continued to be the highest am ong the race and ethnic groups, at 67.6 percent. Following the pace-setting rates of Hispanic population and labor force growth, Hispanic employment has also shown the fastest rise. In 1988, Hispanic employment grew at a very rapid rate of 5.4 percent. A fter being hit particularly hard in the last recession, Hispanics have since accounted for over 15 percent of total employment gains, about twice their share of total employment. Their proportion of total employm ent growth, large in the early years of the expansion, has become even greater in recent years. Though dropping by a percentage point from the year before, the unem ploym ent rate for black workers (11.3 percent) rem ained well above that for Hispanics (7.8 per cent). In the second quarter, the black unem ploym ent rate dipped below its prerecession levels for the first time, si multaneously attaining a 14-year low. The black teenage unem ploym ent rate did not share in the over-the-year decline, holding at slightly above 30 percent at yearend. As with Hispanics, blacks have shown greater rates of employment growth than whites in the expansion. Nonethe less, a large gap still remains between minority unemploy ment rates and that for whites; the Hispanic rate remains more than 1.5 times the white rate, and the black rate is still Chart 4. Unemployment rates for men and women age 2 0 and over, quarterly averages, 1 9 6 8 - 8 8 Percent Digitized for 12 FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Percent nearly 2.5 times higher. A fter changing little in the first half of 1988, em ploy m ent and labor force levels for blacks m ade some gains in the final two quarters, resulting in m oderate over-the-year im provem ents for those measures. The second-half em ploym ent rise propelled the em ploym ent-population ratio for blacks to a record high 56.8 percent (since separate statistics for blacks became available in 1972). T hat ratio is 6.5 percentage points lower than the one for whites; the gap between the ratios was 9.4 points at the recession trough. The 1988 rate of employment growth for whites returned to its 1985-86 pace of about 2 percent, after experiencing a sudden upturn in 1987 along with the rates for other groups. The ratio of employed whites to their population reached a new high— 63.3 percent— as it has done in vir tually every quarter since the recession. The unemploy ment situation for whites also improved in 1988, as the absolute num ber of unemployed persons dipped to its low est level in the decade, despite continued labor force growth over the year. The already low unemployment rate for white workers edged down from the previous year and reached its lowest point since 1974— 4.6 percent. Other labor market developments Two additional measures of the condition of the labor m arket are the counts of “ discouraged w orkers” and “ persons working part tim e for economic reasons.” The num ber of discouraged workers— persons who want jobs but are not looking for them because they believe no work is available— was essentially unchanged over the year, at 950,000. This was a bit unusual in th at the num ber of discouraged workers generally follows overall movements in the level of unem ploym ent, which fell nearly 8 percent over the year. W omen continued to make up slightly more than half of all discouraged workers, and black persons m ade up nearly a quarter. The number of persons working part time for economic reasons— those working part time even though they would prefer a full-time jo b — was as high as 6.7 million during the 1981-82 recession, but had fallen by a million by early 1984. From then until the beginning of 1987, the measure was stubborn in its improvements, as it fluctuated in a very narrow range between 5.5 million and 5.7 million. In the last 2 years, that lower boundary was broken and, though erratic month-to-m onth changes have still been the norm, the level was down to 5.1 million by the end of 1988. De spite the recent improvement, this count of underutilized workers is still nearly 40 percent above its fourth-quarter 1979 level. Even given the present expansion’s rapid em ployment growth, persons working part time for economic reasons accounted for a much higher percentage of total employment at the end of 1988 than in 1979— 4.4 percent, compared with 3.7 percent. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Duration o f unemployment. The median duration of unem ploym ent ended the year at a postrecession low of 5.7 weeks. D uring the last half of 1987 and all of 1988, the num ber of persons becoming unemployed each m onth was rem arkably consistent. T hat is, the num ber reporting they had been jobless for less than 5 weeks was between 3.0 million and 3.2 million for each m onth of the period. This means that the declines in the level and rate of unem ploym ent over that period reflected a drop in the am ount of time workers were rem aining unemployed. In particu lar, the num ber of persons whose spell of unem ploym ent was more than half a year declined rapidly, from around 1 million in mid-1987 to just under 750,000 in late 1988. Those workers m ade up 11 percent of all unemployed persons, as com pared with 15 percent in the m id-1983 highpoint (long-duration joblessness usually lags by 6 m onths or longer). The current proportion of workers encountering such extreme job m arket difficulties is still quite high by historical standards for this far into an eco nomic expansion. Reasons fo r unemployment. Two related postrecession trends continued in 1988: a slight increase in the propor tion of unemployed workers who left their last job and a slight decrease in the proportion who lost their last job. Such trends are usually considered signs of labor m arket health; in periods of economic uncertainty, the two trends reverse directions, as more workers are forced into unem ploym ent attributable to cutbacks (and thereby become job losers) and fewer voluntarily give up their jobs (and become job leavers). Regional unemployment. Just as decreases in jobless ness were widely dispersed among the m ajor age-sex and race-ethnic groups in 1988, unem ploym ent declined in virtually all geographic regions of the country. However, as is always the case, there were wide differences in the incidence of unem ploym ent am ong the regional labor markets. As the tabulation below shows, the unem ploy ment rate (not seasonally adjusted) in the fourth quarter of 1988 was m arkedly lower than the national average in the N ortheast, especially in New England. In contrast, jobless rates in the South C entral States continued to be m uch higher than the national average, attributable prin cipally to weaknesses in the energy-related industries. T o ta l U n ite d S t a t e s ............................5.3 N o r t h e a s t ............................... N e w E n g l a n d ................... M i d - A tla n tic ................... 3.9 2.9 4.3 S o u th ..................................... S o u th A t l a n t i c ............. E a s t S o u th C e n tr a l . . . W e s t S o u th C e n tr a l .. 5.7 4.5 6.9 7 .0 N o r t h C e n t r a l ...................... E a s t N o r t h C e n tr a l . . . . W e s t N o r t h C e n tr a l . .. 5.3 5.7 4 .4 W e s t ....................................... M o u n t a i n ........................ P a c ific .............................. 5 .0 5.4 4.8 13 M O N T H L Y LA B O R R E V IE W February 1989 • I n s u m m a r y , the economy maintained its expan sion through a sixth full year in 1988, as growth in employment and declines in unemployment continued. As in past years, the service-producing sector paced the expansion, although the manufacturing industry dem Digitized for14 FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Employment and Unemployment in 1988 onstrated strength for the second straight year. The N ation’s civilian jobless rate, at 5.3 percent in the final quarter, reached its lowest point since 1974, as most major worker groups shared in the improving job picture. □ Shiskin award nominations The W ashington Statistical Society invites nominations for the tenth annual Julius Shiskin Award in recognition of outstanding achievement in the field of economic statistics. The award, in memory of the former Commissioner of Labor Statistics, is designed to honor an unusually original and im portant contribution in the development of economic statistics, or in the use of economic statistics in interpreting the economy. The contribution could be in statistical re search, in the developm ent of statistical tools, in the application of computers, in the use of economic statistics to analyze and interpret the economy, in the management of statistical programs, or in developing public understanding of measurement issues, to all of which Mr. Shiskin contributed. Either individuals or groups can be nominated. The aw ard will be presented, with an honorarium of $500, at the W ashington Statistical Society’s annual dinner in June 1989. A nom ina tion form may be obtained by writing to the Julius Shiskin Award Com mittee, Am erican Statistical Association, 1429 D uke Street, Alexandria, va 22314-3402. Com pleted nom ination forms must be received by A pril 1, 1989. Families of working wives spending more on services and nondurables When a wife becomes a second earner, husband-wife families spend more on work-related and timesaving items such as child care and food away from home, according to the Consumer Expenditure Survey E v a Ja c o b s , St e p h a n i e S h i p p , and G regory Brow n D uring the post-W orld W ar II era, there has been a dram atic increase in wom en’s labor force participation. This has generated a great deal of public interest in the social and economic consequences of the employm ent of women. High rates of labor force participation are preva lent for women both with and w ithout children. Today, m ore than half of all m others with children under age 3 w ork outside the home, com pared with fewer than onefourth of such m others in 1967. (See table 1.) The Consum er Expenditure Survey provides data that perm it us to examine the effects of a wife’s labor force participation on the income and expenditures of her fam ily. The data used in this study are from the 1984-86 Consum er Expenditure Survey.1 To determine the eco nomic effects on the family of a wage-earning wife, two groups of consum er units2 are compared: (1) husband-wife families in which only the husband is an earner, and (2) husband-wife families in which both the husband and wife (and no others) are earners. These families will be referred to as one- and tw o-earner families, respectively. Families in which the wife is the only earner are not included in this Eva Jacobs is chief o f the D ivision o f C onsum er E xpenditure Surveys, B ureau o f L abor Statistics. Stephanie Shipp is chief o f the B ranch of Info rm atio n and A nalysis in the Division, and G regory B rown is an econom ist form erly w ith the Division. A n earlier version o f this article w as p re sen te d a t th e a n n u a l m eeting o f th e A m e ric an S ta tistica l A ssociation, A ugust 2 1 -2 5 , 1988, in New O rleans. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis study. In our analysis, expenditures generally perceived to be associated with the wife working outside the home are studied; these include expenditures on women’s apparel, child care, purchase of vehicles, gasoline, public transpor tation, housing, and Social Security and pension plan costs. We will also discuss the additional income received from the wife’s employment. T here are tw o p a rts to this analysis. F irst, we co m pare th e average an n u al incom e and expenditures o f those consum er units in w hich th e wife becam e em ployed du rin g th e period th e consum er u n it w as in the survey w ith sim ilar consum er units in w hich th e wife was n o t em ployed. T he econom ic costs an d benefits from th e wife’s em ploym ent are defined in term s o f the changes in expenditures an d incom e th a t result from th e change in th e em ploym ent statu s o f th e wife. In the second p art, we use m u ltiv ariate regression analysis to m easure th e effect o f th e wife’s em ploym ent on con su m er-unit expenditures for all husband-w ife units. In this p art, we exam ine all one-earner and tw o-earner fam ilies an d also m ake th e distinction betw een parttim e and full-tim e w orking statu s o f the wife. E ach p art o f th e study will be described in turn. The price of time Intuitively, one would expect two-earner households to spend their money differently than do one-earner house- 15 M O N T H L Y LA B O R R E V IE W February 1989 • holds. First, households in which both the husband and wife work have less tim e available for household-related activities such as cooking and cleaning. This increased dem and on a couple’s tim e raises the value of tim e as a factor of production in household activities. Second, there is an income effect by which the wife’s additional income increases expenditures in accordance with the relevant income elasticities. In addition, the wife’s contribution to the family income m ay play an enhanced role in the deci sion about how to allocate income am ong expenditures. One can envision a pooling of income in which individual preferences are weighted differently when the wife works. The relative weighting o f these preferences m ay be altered by the wife’s decision to work. Vicki Schram Fitzsim m ons found th at there was a greater incidence o f joint responsi bility for money m anagem ent tasks in tw o-earner families than in one-earner families.3 Household production time, we assume, would be a more valuable “com m odity” to two-earner families than to one-earner families. Some studies suggest that time may be more valuable today in the U nited States than in the past or in other countries. For example, Victor Fuchs found that women were working 20 minutes longer per day in 1983 than in 1959, if one includes working for pay, housework, and child care.4 As early as 1965, G ary S. Becker pointed out that Americans are much more wasteful of food and other goods than persons in poorer countries and much more conscious of time: “The tendency to be economical about time and lavish about goods may be no paradox, but in part simply a reaction to a difference in relative costs.” 5 The substitution of goods and services for tim e induced by an increase in the cost o f tim e would often include substitution of m ore expensive goods and services. For example, an increase in the value of a m other’s tim e may induce her to enter the labor force and spend less time cooking by using prepared foods and less tim e on child care by using day care centers or babysitters. D uring the busiest years of raising a family and working, the value of time is relatively high. It is during the w o rk in g -child caring phase of the life cycle th at the individual works m ore and has less leisure tim e.6 If the wife works outside the home, she will be m ore inclined to pay for services than the nonw orking wife. The value of tim e also changes for an individual at various states in his life and, later in the life cycle, these changes induce substitution o f rela tively cheaper means of household production for p u r chased goods and services. D on Bellante and A nn C. Foster used this theory of the allocation of tim e as the prim ary rationale underlying their 1983 study.7 Because working wives spend fewer hours per week in housework, Bellante and Foster exam ined the influence o f the wife’s em ploym ent on expendi tures for services. They also controlled for a variety of dem ographic variables. T heir results were mixed, in that there was a positive relationship between em ploym ent and Digitized for16 FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Expenditures o f Families o f Working Wives Table 1. Labor force participation rates of women by age, selected years, 1948-87 Participation rate in — Age 1948 1967 1977 1987 Total, 16 years and over..... 32.7 41.1 48.4 56.0 16 to 19 years ............. 20 to 24 years............. 25 to 34 years ............ 35 to 44 years............. 45 to 54 years............. 42.0 45.3 33.2 36.9 35.0 41.9 53.3 41.9 48.1 51.8 51.2 66.5 59.7 55.8 55.8 53.3 73.0 72.4 74.5 67.1 some relevant services, such as child care, but not between employm ent and domestic services. Using data from the 1972-73 Consum er Expenditure Survey, Elizabeth W aldm an and Eva E. Jacobs found that “it is not employm ent or nonem ploym ent of the wife that per se accounts for difference in expenditures, but rather the interaction between earner status and the contribution to income of the second earner.” 8 Longitudinal aspects of the study The Consum er Expenditure Survey, which has been continuous since 1980, has a limited longitudinal aspect. F or the Interview portion of the survey, a sample of con sum er units is interview ed every 3 m onths over five consecutive quarters, w ith the num ber of interviewed cases expected to be about 5,000 per quarter. F or reasons of operational efficiency, the sample is rotating— onefifth of the consum er units are replaced by new units every quarter. Each quarter of data is treated as statisti cally independent. If a survey respondent moves, the new residents at th at address become the sample unit. M overs are not followed. A bout 70 percent of the consum er units participate for all five interviews.9 The interviewer collects extensive expenditure data and inform ation on the characteristics of the consum er unit. Am ong these are the age, income, and w ork experience of all the members. Because the interview is lengthy and tim e-consum ing, the w ork and incom e questions are asked only in the second and fifth interviews. We have not heretofore explored the possibilities of using the limited longitudinal aspect of the Consum er Expenditure Survey. However, we have investigated the types of questions we could attem pt to answer by follow ing the same household over time. Because one of the current issues being widely discussed is the prevalence of the two-earner family, we decided to investigate w hat happens to the expenditures of a consum er unit when the wife goes to work during the survey period. F or this part of the study, we examine the income and expenditures of husband-wife consum er units in which the wife began working between the second and fifth interviews and con sum er units in which the wife was not working during either the second or fifth interview periods.10 We identified the first group as “new earner” consumer units. The second group we called the “ control” con sum er units. The control households, in which the wife was not employed in either the second or fifth interview, were selected based on characteristics such as age, family size, family type, and income that m ade them similar to the new earner group. To obtain a sample of sufficient size for analysis, consum er units were selected from the years 1984-86. The resulting sample in each group was 175 consum er units. We first examined the changes in income and expenditures between the second and fifth interviews within each group, and then com pared the changes be tween the two groups. It should be noted that, for this study, we did not take account of the actual date on which the wife started working. Therefore, by the fifth interview she may have been working for as little as 1 m onth or as m uch as 9 m onths. It was hypothesized that income and those expenditures which are commonly associated with working would be higher in the fifth interview than in the second interview for the new earner households. The expenditures are for food away from home, women’s apparel, child care, vehi cles, gasoline, and mass transit. In addition, we looked at housing, because the desire for hom eownership is fre quently given as a reason for wives returning to work, and at Social Security taxes and pension contributions, which are directly associated with earnings. The results as shown in table 2 are mixed. For the new earner group, the com ponents th at met expectations are income, with an increase of 17 percent from interview 2 to interview 5; food away from home, with a 16-percent increase; and child care, with a 30-percent increase. Be cause gasoline prices were declining during the reference period, the 7-percent rise in th at com ponent reflects a m uch larger real increase and can be included as well. Housing and pension costs also increased, but at a lower rate, and expenditures on wom en’s apparel increased only a small am ount. The result for vehicles can probably be explained by the small num ber of reports for this cate gory, which leads to a high variance. F o r example, if one or two consum er units purchase an expensive automobile or truck in interview 2 and not in interview 5, a high variance could result with such a small num ber of obser vations. Expenditures for mass transit are a small value, in addition to being sparsely reported. It is notew orthy th at the average age of the wife in the new earner group is 42, near the upper age limit of the high labor force participation group. C onsidering the large proportion of younger women employed in the total population, it appears th at a few women are leaving and rejoining the labor force but that m ore are employed con tinuously. On the other hand, the expenditures show that those in the younger group often require child care as soon as they enter or reenter the employed labor force. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis W hen com paring the new earner and control groups, we run into unexpected anomalies. The increase for the control group is m uch larger for food away from home and wom en’s apparel. This may be just an aberration. For most of the categories, the results are generally satisfac tory, with the new earner group showing larger changes than the control group. If these results reflect reality, one can rationalize the discrepancy between the increase in income and the in crease in expenditures. The new earner group wives could have entered the labor force to help pay for the earlier or prospective purchase of a car or house or college tuition, or to repay previously incurred debts. The improvement in the financial position of the new earner group, going from expenditures equalling income after taxes in inter view 2 to a surplus in interview 5, may be used for these purposes. The control group, on the other hand, has a similar surplus in both periods. This is our first attem pt at using the longitudinal char acter of the Consum er Expenditure Survey. We hope to investigate the effect of other events. One approach would be to examine the reverse of the labor force m ovement we have examined here, that is, to look at consum er units in which the reference person has retired during the con sum er u n it’s participation in the survey. O ther possi bilities are to com pare the expenditures of consum er units with members moving in, newly born members, or other additions to the unit with consum er units of constant size. However, the sample size may be statistically inadequate for some of these investigations until we accum ulate more years of data. Characteristics of families Following are our findings about the differences in expenditures between all one-earner and two-earner con sum er units obtained from regression analysis. F irst, Table 2. Longitudinal comparison of selected characteristics and expenditures of one- and two-earner husband-wife families, 1984-86 _______ Control group New earners Per- Interview Item Per Interview cent cent 2 5 change 2 5 change 2 Income before taxes...... $27,951 $32,425 16 $27,480 $28,081 Income after taxes.......... $26,006 $30,482 17 $25,237 $25,913 3 43.3 — 3.9 3.8 — 7 $23,744 $23,796 $26,160 $27,912 1,024 733 17 1,092 937 429 385 3 469 456 118 130 158 30 122 1,494 1,904 1,398 -4 2 2,423 1,066 1,081 7 1,180 1,101 18 33 35 -1 5 41 2,363 2,284 6 2,736 2,593 — 0 40 11 -9 -2 2 -1 -4 6 3 2,124 0 Age of w ife..................... Family size..................... Total expenditures.......... Food away from home . Women's apparel....... Child care.................... Vehicles....................... Gasoline..................... Mass transit................ Shelter........................ Social Security, pensions......................... — 2,256 42.0 2,380 - - 5 2,135 17 M O N T H L Y LA B O R R EV IEW Table 3. February 1989 Expenditures o f Families o f Working Wives • Demographic characteristics of husband-wife families1 classified by wife's employment status, 1984-86 All Fam ily incom e and w ife ’s em ploym ent status husband-w ife Characteristic fam ilies Less than $20,000 $2 0 ,0 0 0 -$ 3 4 ,9 9 9 $3 5 ,0 0 0 and over Not Part- Full- Not Part- Full- Not Part- working Full- tim e Not tim e working tim e tim e working tim e tim e working Fulltim e tim e Number of consumer units (in thousands)...... 14,052 9,351 18,774 6,178 3,414 4,553 4,674 3,562 7,436 3,200 2,375 6,786 Income before taxes...... $28,923 $30,820 $36,282 $12,807 $12,582 $14,216 $28,914 $29,884 $30,863 $64,140 $58,439 $57,114 $51,441 Income after ta x e s ......... $26,439 $28,221 $32,573 $11,725 $11,673 $12,879 $26,184 $26,943 $27,846 $58,973 $53,923 Size of consumer unit..... 3.4 3.4 3.0 3.3 3.2 3.1 3.4 3.5 3.0 3.3 3.5 2.9 Age of reference person . 44.5 38.3 37.9 44.1 38.1 36.6 43.8 36.8 36.6 46.5 41.0 40.1 Number In consumer unit: Earners..................... Vehicles.................... Children under 18....... 1.0 2.2 1.3 2.0 2.5 1.4 2.0 2.5 1.0 1.3 2.0 2.2 1.2 2.0 2.2 1.1 1.0 2.4 1.3 2.0 2.6 1.5 2.0 2.6 1.0 1.0 2.5 1.3 2.0 2.8 1.4 2.0 2.7 0.9 P ercent reporting Housing tenure: Homeowner with mortgage................... Homeowner without mortgage................... Renter." ..................... 50 60 62 33 39 38 56 66 62 72 82 78 26 24 15 25 12 26 28 39 20 41 18 44 24 20 13 21 11 27 20 8 10 8 9 13 Race of reference person: Black........................ White and other.......... 5 95 5 95 91 8 92 91 12 88 3 97 3 97 9 91 2 98 3 97 7 93 Education of reference person: Elementary (1 -8 )........ High school (9 -1 2 )..... College........................ 10 47 43 4 39 57 5 43 52 17 55 28 10 53 37 9 59 32 5 53 42 1 44 55 48 48 24 75 21 78 27 71 1Data are for complete income reporters. See text footnote 10. however, we examine the characteristics of all husbandwife families classified by the wife’s earner status. Families in which both the husband and wife work are a m ajor and growing segment of A m erican society. In alm ost 70 percent o f husband-w ife families, the wife works outside the home. Tw o-thirds of these women work full time, while one-third work part time. (See table 3.) There are differences in the characteristics of families in which the wife works full tim e and those in which the wife is not employed. F or example, families in which both the husband and wife work full time are younger, are more likely to have attended college, and have fewer children. The hom eownership rate is about the same for the two types of families, but the two full-time earner family is only half as likely to own its hom e m ortgage free. A higher proportion of families with two full-time workers are black. Also, two full-time earner families own more vehicles than one-earner families, although both average at least two. Families in which the wife works part tim e exhibit some of the characteristics of families in which the wife works full time and some of the characteristics of those in which the wife does not work outside the home. Families in which the wife works part tim e are, on average, the same age and own the same num ber of vehicles as two full-time earner families. However, tw o-earner families in which the wife works part tim e are m ore like one-earner 18 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis families in that, on average, they have about the same num ber of children. This may explain, in part, why the wife works part time, as it may not be economically feasi ble to pay for extra child care. She may arrange her work schedule around the schoolday or her husband’s work schedule, or both. A look at the characteristics presented in table 3 shows that approxim ately the same relationships hold across all income levels. However, there are some interesting differ ences. N ot surprisingly, the wife works full time in more than half of the families in the highest income group, com pared to only one-third of the families in the lowest income group. The average age of the highest income group is higher. It is possible that the children are also older, perm itting more women to work full time. On average, women contributed substantially to family income. Earnings of women working part time repre sented about 29 percent of their families’ total income. W omen who work full time contribute 40 percent of their families’ incom e.11 The sources of income are somewhat different in gen eral between one-earner and two-earner households. (See table 4.) Tw o-earner families obtain a higher share of their income from wages and salaries and a lower share from self-employment income than one-earner families. As one would expect, one-earner families receive a higher share of their income from Social Security, private, and govern- m ent retirem ent. This reflects the higher average age of the head of the one-earner consum er unit, in which one spouse may be retired and the other still working. Heads of one-earner households are, on average, 6 years older than heads of tw o-earner households. O ne-earner families earn two to three times more from interest and other property income, both as a share of income and in absolute dollar term s, than two-earner families. This m ay be because one-earner families are older and therefore m ore likely to have accum ulated wealth. It may also be because single-earner families may invest and save m ore than dual-earner families to offset som ewhat their reliance on a single paycheck. A wife’s earnings may dim inish a family’s motive to save as a hedge against a husband’s possible job loss. In addition, if a working wife is covered by a pension plan, which is in part employer financed, the family’s m otivation to save for retirem ent may be lessened.12 Incom e is 23 percent higher for two full-time earner families when com pared to one-earner families, whereas it is only 7 percent higher for tw o-earner families in which the wife works part time. Incom e for one-earner and twoearner (wife works part time) families are about the same for the two lowest income groups. If the wife works full time, income is between 6 and 10 percent higher than the income of one-earner families in the two lowest income groups. In the highest income group, the one-earner fam ily appears to be a different type. Incom e is 14 percent higher than th at of families in which the wife works full tim e and 9 percent higher than th at of families with wives employed part time. This can be explained by the fact that the higher income group is open ended. One-earner families in this income group have m ore self-employed earners, and interest, dividends, and other property in come are also substantial. In families in which the husband earns an income that is considerably above average, a high proportion of the Table 4. wives do not work. The benefit of additional income from the wife is probably relatively low. Also, if the wife does not have the training or inclination for professional work, it may be relatively difficult for her to find w ork that befits the social status she derives from her husband. A c cording to B arbara R. Bergmann, “Such families con stitute the last bastion of the full-time housewife.” 13 This review of the characteristics and income of these households emphasizes that there are other variables be sides earner status that influence spending patterns, and that many of these variables are related to each other. Regression analysis M ultivariate tobit regression analysis was used to ex amine w hether expenditure differences exist between oneand two-earner families after controlling for differences in dem ographic characteristics.14 The tobit statistical proce dure is particularly well suited to the analysis of data when some consum er units incur no expenditures for some items during the interview period. W eights were used in the regression analysis, so that the results apply to the total population. The analysis was limited to those expenditures gener ally perceived to be influenced more by the earner status of the wife than by other dem ographic characteristics. E ight equations were estim ated. T he eight dependent variables were expenditures15 for food away from home, child care and babysitting, gasoline and m otor oil, p u r chase of new vehicles, purchase of used vehicles, wom en’s apparel, public transportation, and shelter. Independent variables and hypotheses. We are investi gating w hether the working status of the wife accounts for differences in expenditures among husband-wife families or w hether the differences are due to income, family size, the presence of children, or some other characteristic. The working status of the wife is the variable of interest for this study. To isolate the effect of th at variable, we are Percent distribution of income by source for husband-wife families1 classified by wife's employment status, 1984-86 Fam ily incom e and w ife’s em ploym ent status am nusoana-wiTe tam nies $ 3 5,000 and over $ 20,000 to $34,999 Less than $20,000 Incom e by source P art-tim e Full-tim e Not working P art-tim e Full-tim e Not working P art-tim e Full-tim e Not w orking P art-tim e Full-tim e Not working Income before taxes ... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Wages and salaries........ 77.3 86.2 91.0 79.4 82.2 87.3 86.1 92.6 91.8 78.4 82.8 87.3 Self employment............ 9.2 7.3 4.7 4.7 5.2 4.2 5.1 3.4 4.0 9.7 11.7 8.1 Social Security, private, and government retirement..................... 7.4 2.6 1.6 9.1 5.9 3.1 5.0 1.8 1.8 4.8 2.0 1.4 Interest, dividends, rental income, and other property income... 4.6 2.4 1.4 2.1 2.0 1.1 2.8 1.3 1.2 6.6 2.6 2.2 Other income2................ 1.6 1.4 1.3 4.6 4.6 4.3 1.0 0.9 1.2 0.5 0.8 1.0 'Data are for complete income reporters. See text footnote 10. 2Other income includes unemployment and workers' compensation, veterans' benefits, public assistance, supplemental security income, food stamps, and regular contributions for support. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 19 M O N T H L Y LA B O R R E V IE W T a b le 5. February 1989 • Expenditures o f Families o f Working Wives T o b it r e g re s s io n c o e ffic ie n ts D ependent variables In d ependent v a ria b le 1 Food away from Child New Used home care2 vehicles vehicles Gasoline m otor oil Public W o m en ’s transportation apparel Shelter Employment status of wife (not working): Part-time................................. Full-time............................. 19.00** 27.74* Total expenditures3 ..................... 3.31* 1.79* 144.55* 30.38* 0.56* 3.89* 1.65* 11.42* Age of reference person.............. 5.12* 46.62* -699.29* -405.71* 7.11* 9.00** 2.33** 11.16* Age-squared................................. -0.04* -0.53* 6.22* 3.19* -0.08’ Age* part-time employment status of wife.............................. 523.37* 785.04* — -8.86* Age* full-time employment status of wife.............................. — -13.64* Family size................................... -5.11 Presence of children (age 12 or over): Under age 6 ............................. Ages 6 - 1 1 ............................... -79.00* 6.45 Education (high school): Less than 12 years................... Some college............................ College graduate or more......... -83.76* 50.24* 99.03* Seasons (Fall: October- Decernber): Winter (January-March).......... Spring (April-June).................. Summer (July-September) ..... -45.35* -8.72 12.37 Region (South): Northeast................................. Midwest................................... W est........................................ 33.32* 27.93* 14.13 -46.82* 25.73 18.05 Urbanization (urban): Rural........................................ -44.69* -36.31* Number of vehicles..................... Housing tenure (renter): Homeowner ............................. Constant.................................. — — -75.63** -14.90** 822.16* 208.96* -87.08* 82.08* 166.42* — — — — — -2149.00* -1198.57 870.19 — — -1553.68 12.30* 24.89* 40.59 29.40 -0.06 — — — — — — 212.62** -36.19** 36.23* -0.03* 1.52* -25.48 41.77** -0.23* — -0.34 — 18.98* 17.67 -12.48* -21.05** -141.64* -75.00* -28.40* -27.08* 47.57** 32.77 — — — — -28.88* -18.52* 1274.55* -1574.48* -2461.19* -16.42* 2.92 -10.85* 15.27 109.33* 293.42* -40.67* 27.54* 57.01* -4 3 93 90 59* 445.23* 8.47 5.94 33.57* -11.06 -3.17 108.72* 46.81* -7.73 -13.02** -4 6 48** -117 68* -47.41** -53.09* -34.75* -11.38* 222.62* 28.43 213.55* 15.75* 11.73 -0.09 92.84* 9.95 336.26* -312.16 22.99* -300.53* -29.15* -315.08* 1328.87* 32.85* -76.98* -1385.39 -874.15 -3800.40* 11.20 697.57 932.17 645.68 -24.18 -2856.01* 139.42 2006.12* -21401.44* 1Where appropriate, characteristics of the reference group are indicated in parentheses. Child care includes day care and babysitting. 3Values have been multiplied by 100. controlling the other socioeconomic variables. These vari ables are listed in table 5 and are similar, although not identical, for each of the eight models being estimated. W here appropriate, the characteristics of the reference group are indicated in parentheses in the table. The refer ence group is the group to which the com parison is made. F or instance, in table 5, the reference group is “wife not w orking.” The coefficients for “P art-tim e” and “F ull tim e” are com pared to the “not working” group. By way of example, the coefficient of 19.00 for food away from home for wives working part tim e indicates that these wom en’s families spend m ore on food away from home than families in which the wife does not work. Unlike ordinary least squares regression estimates, tobit regres sion coefficients indicate only the direction, and not the magnitude, of the differences between groups. The working statu s16 of the wife is defined as follows: (1) the wife is not employed outside the hom e (the refer Digitized for 20FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -70.44 20.25 -449.43 518.29 -103.24 — — — — — -6608.70* 4.54 __ _ — — 32.34 -1261.17* -84.11* 227.31* 'Significant at the alpha = .01 level. * ‘ Significant at the alpha = .05 level. Note : Dash indicates that the variable was not used in the model. ence group); (2) the wife is working part time; or, (3) the wife is working full time. W orking part time is defined as working fewer than 35 hours per week or working full time for part of the year. W orking full time is defined as working 35 hours or more per week for at least 50 weeks. It is hypothesized th at working will be positively related to the expenditures under study. Consistent with classical consumption theory and the re sults of previous research, income is hypothesized to be positively related to expenditures. Total expenditures are chosen as a proxy for income for three reasons.17 First, the permanent income hypothesis suggests that total expendi tures are an appropriate measure of income because, in the short run, families have more control over expenditures than over incomes. Second, total expenditures have been shown to give a better fit than income in models designed to predict expenditures in a number of expenditure catego ries.18 Third, in addition to the economic reasons, there are operational reasons for using total expenditures. Income data are only collected during interviews 2 and 5. Income data are collected for the previous year while expenditure data are collected for the previous 3 months. Thus, there is a lag between reports of income and expenditures that dis appears at the aggregate level but may distort results at the micro level. Using total expenditures as proxy for income corrects this timelag problem. The presence of children by age group is included in the model because it affects expenditures, particularly for child care and food away from home. This variable is entered as a categorical variable and is defined as (1) the presence of children under age 6; (2) the presence of chil dren ages 6 to 11; or, (3) the presence of children age 12 or older (the reference group). Age and age-squared are included in the model to m ea sure changes in expenditure patterns over the life cycle.19 (Recall that one-earner families are, on average, older.) Fam ily size is also included because it is a m ajor determ i nant of household consum ption patterns,20 although the direction of its effect may differ depending on the item — expenditures probably vary negatively with family size for food away from home, and positively for child care. It is not clear w hat the effect on the other expenditure catego ries will be. Housing tenure is included in the shelter model because of the inherent differences in the cost of renting versus owning a home. Education is controlled for because previous research indicates th at education in creases efficiency in all n o n m a rk e t activ ities.21 T his greater efficiency increases a household’s real income. E d ucation also is used as a variable in consum er research to m easure social status. Regional variation in the availability of and need for goods and services as well as regional price differences makes it necessary to control for the region of the country in which the consum er unit lives. The same is true for urban and rural differences. Results Results of the regression analysis are displayed in table 5. To test the overall significance of the set of variables included in each expenditure model, the likelihood ratio test statistic was used.22 The resulting chi-square values were statistically significant at the 0.01 level. This allowed for the rejection of the null hypothesis th at all of the coefficients (except the intercept) are equal to zero for all the models considered. The coefficients from the tobit regression models were used to calculate the predicted expenditures and to determ ine changes in expenditure patterns over the life cycle. Expenditures for households in which the wife works full tim e or part tim e were significantly greater for most of the items under study than for households in which the wife is not employed, after accounting for the other differ ences. Fam ilies in w hich the wife is em ployed spend https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis significantly more on food away from home, child care, women’s apparel,23 and gasoline and m otor oil than do families in w hich the wife does not w ork outside the home. If the wife works full time, her family also spends significantly more than the one-earner family on shelter. Child care expenditures include all expenses for nurs ery school, day care, babysitting, camp, and so on. Child care expenditures are a necessity for m others employed outside the home. W hether the wife works part time or full time, child care expenditures are significantly more than for families in which the wife is not employed. H ow ever, this difference narrow s as these women get older. This makes intuitive sense because older women are more likely to have older children, who require less outside care. It is also confirmed by the presence-of-children vari able that shows families with children age 11 or younger spending significantly more for child care than families with children age 12 or older. Based on results from the regression equation, child care expenditures for families in which the wife works full time increase until age 30 and continue at that level until about age 35, at which point they begin to decline steadily. Child care expenditures for fam ilies in w hich the wife w orks p a rt tim e increase through age 35, when they level out until age 40 and then begin to decline. The wives in these families have more children and retu rn to w ork later or w ork part time longer. H ouseholds in which the wife works spend significantly more on food away from home than the one-earner house hold. The working wife often buys lunch or breakfast, or both, at work. In addition, she may be inclined to cook dinner less often, due to lack of time. This means her family will often eat dinner out as well. Expenditures for vehicles, both new and used, are the same for one- and two-earner families despite the fact that two-earner families own more vehicles than do one-earner families (2.5 versus 2.2 vehicles). Ownership of more vehi cles is one reason why gasoline and m otor oil expenditures are higher for two-earner families. In addition, the accrued mileage that occurs from daily commuting increases gas and m otor oil consumption. Wives who work full time spend more on clothing than wives who are not working, although the difference closes with increasing age. Wives who work part time spend more on apparel than nonworking wives after age 24. Expenditures for shelter, including both owned dwell ings and rental units, are significantly higher for families in which the wife works full time. These families are younger and have higher mortgages. Also, fewer twoearner families own their homes w ithout m ortgage— 12 percent versus 24 percent of one-earner families. Two full time earner families who are renters also have higher average rental costs. If the wife works part time, shelter costs are about the same as for families in which the wife is not employed. This may be explained by the fact that 21 M O N T H L Y LA B O R R E V IE W February 1989 • one-earner and tw o-earner families in w hich the wife works part time have the same num ber of children, on average, and thus have sim ilar space requirem ents and housing needs. In addition, the average income of families in which the wife works part tim e is only slightly higher than that of one-earner households. While the em ploym ent status of the wife is statistically significant in explaining differences in the levels of ex penditures for child care, food away from home, gasoline and m otor oil, wom en’s apparel, and shelter, it is im por tant to note the relative im pact of the wife’s working status on expenditures. One way to do this is by looking at the effect of the wife’s working status on the predicted expenditures. A fter controlling for oth er explanatory variables, the working status of the wife has a small, al though significant, im pact on the predicted expenditures for these items. F o r example, families of employed wives spend an average of 17 to 18 percent m ore per year on child care and about 4 percent m ore on w om en’s apparel than families of wives who are not employed. Expendi tures on food away from hom e are between 2 and 3 percent higher if the wife works. Thus, the relative impact on expenditures of the wife’s working appears small. This is supported by previous studies th at yielded sim ilar re sults, in th at significant differences are found but the actual dollar differences are relatively sm all.24 W hat ap pears to be happening is th at these same expenditures rise as the income of the one-earner family rises. Therefore, the difference in expenditures at the same income level is not as great as might be expected. W hat about the expenditure categories for which the wife’s earner status is not significant, such as for the pur chase of vehicles? All husband-wife families own more than two vehicles, on average. Purchase of new vehicles is deter mined by income and age while purchase of used vehicles is determined by income, age, family size, and education. A similar finding about other consumers’ durable goods was made by M yra H. Strober: “ . . . although initial labor force participation may be associated with an increase in the durables to income ratio, after wives have been at work for a few years, most of the substitution out of home pro duction is likely to be into the time-saving nondurables and services.” 25 Public transportation is another expenditure category for which the wife’s earner status is not significant. In the regression equations, public transportation includes large ticket items which are often used as vacation transp orta tion, such as airline fares, train tickets, and ship fares, as well as local transit. The com m uter com ponent is rela tively small. Therefore, it is not surprising that the wife’s earner status is not significant. Public transportation ex penditures for husband-wife families are positively related to income and age and negatively related to the presence of children under age 12. A nother indication th at this is Digitized for 22FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Expenditures o f Families o f Working Wives vacation transportation is that the regression results indi cate that expenditures are highest in the summer. Summary The results from the longitudinal analysis and regres sion analysis are sim ilar although not identical. Both analyses yield similar findings for expenditures on child care, gasoline, and vehicles. Child care and gasoline ex penditures were found to be higher for the families of working wives, while vehicle purchases and public trans portation expenditures were com parable for all husbandwife families regardless of the wife’s employm ent status. The low increases in shelter in the longitudinal analysis may be explained in part by the mixed result in the regres sion analysis section. Two full-time earner families do spend significantly more than one-earner families on shel ter, while tw o-earner families in which the wife works part time spend the same am ount on shelter as one-earner families. Expenditures for food away from home and women’s apparel are significantly higher for all two-earner husbandwife families when compared to one-earner husband-wife families, according to the regression results. The longitudi nal analysis also shows increases in expenditures for food away from home and wom en’s apparel for families in which the wife returns to work. The only puzzling result here is that expenditures for food away from home and women’s apparel increased more for the “control” (oneearner) households than for the “new earner” (two-earner) households. The labor force is now growing at slightly more than 1 percent a year, compared to double that rate during the 1970’s and early 1980’s. Labor shortages in some industries are already beginning to appear. The Census Bureau’s 1982 Current Population Survey found that 26 percent of non working mothers with preschoolers would look for work if “reasonably priced child care were available.”26 This repre sents a potential addition to the labor force of 1.7 million women. Thirteen percent of employed women with pre schoolers (about 700,000 workers) said they would work longer hours if additional or better child care were avail able. Given these attitudes toward work and tighter labor supplies, it is likely that more employers will begin to offer child care benefits to induce women to enter the labor force. Hence, the num ber of two-earner families may be expected to continue to grow. The ongoing Consumer Ex penditure Survey will allow for future examination of the spending patterns of these families. □ ---------- FOOTNOTES---------‘T he d ata used in this study were draw n from the Interview portion o f the 1984, 1985, and 1986 C onsum er E xpenditure Survey. T he Interview survey is the m ost com prehensive survey o f dem ographic characteristics of A m erican consum er units. T he Interview sam ple, selected on a rotat- ing panel basis, is targeted at 5,000 consum er units per quarter. E ach q u arter, one-fifth o f the sam ple is new to the survey. C onsum er units who p articipate in the survey are interview ed five times, once per q u a r ter; th e first interview is used only for bounding purposes. D ata for interviews 2 th ro ugh 5 are used for publication and analysis. O ver the 1 9 8 4 -8 6 tim e fram e, d ata for a consum er unit m ay be available from one to four tim es. E ach q u arter is considered as a separate sam ple when estim ates are calculated. 2T he term s “ household,” “fam ily,” and “consum er u n it” are used interchangeably th ro ughout the text. 3Vicki Schram F itzsim m ons, “ Fam ily M oney M anagem ent: How O ne-E arner and T w o-E arner Fam ilies H andle M oney,” poster presenta tion at the an n ual m eeting of the A m erican C ouncil on C onsum er Interests, Chicago, IL, A pril 1988. 4V ictor Fuchs, “ Sex D ifferences in E conom ic W ell-Being,” A pr. 25, 1986, pp. 4 5 9 -6 4 . 5G.S. Becker, “ A T heory o f the A llocation of T im e,” Journal, Septem ber 1965, pp. 4 9 3 -5 1 7 . Science, The Economic 6R obert T. M ichael and G ary S. Becker “O n the New T heory o f C onsum er B ehavior,” Swedish Journal of Economics, Septem ber 1973, pp. 3 7 8 -9 5 . 7D on Bellante and A nn C. Foster, “ W orking W ives and E xpenditure on Services,” Journal of Consumer Research, Septem ber 1983, pp. 7 0 0 -0 7 . 8E lizabeth W aldm an and Eva E. Jacobs, “W orking W ives and Fam ily E x penditures,” Proceedings of the Social Statistics Section of the Ameri can Statistical Association, 1978. 9F o r the initial interview, inform ation is collected on dem ographic and fam ily characteristics and on the inventory of m ajo r durable goods o f each consum er unit. E xpenditure inform ation is also collected in this interview, using a 1-m onth recall, but is used, along w ith the inventory inform ation, solely for bounding purposes; th at is, to classify the unit for analysis and to prevent duplicate reporting of expenditures in subsequent interviews. D ata from the first interview are not used in the estim ates. 10C om plete incom e reporters. T he distinction between com plete and incom plete incom e reporters is based in general on w hether the respon dent provided values for m ajo r sources o f incom e, such as wages and salaries, self-em ploym ent incom e, and Social Security incom e. Even com plete incom e reporters m ay not have provided a full accounting of all incom e from all sources. In the cu rren t survey, across-the-board zero incom e reporting was designated as invalid, and the consum er unit was categorized as an incom plete reporter. D ata for the descriptive statistics (tables 2 and 3) are for com plete incom e repo rters only. D ata used in the regression analysis are for all husband-w ife families. "S u san E. Shank, “ W om en and the labor m arket: the link grows stro n g er,” Monthly Labor Review, M arch 1988, pp. 3 - 8 . 12M yra H. Strober, “W ives’ L abor Force Behavior and Fam ily C on sum ption P attern s,” American Economic Review, F ebruary 1977, pp. 4 1 0 -1 7 . " B a rb a ra R. Bergm ann, The Y ork, Basic Books, Inc., 1986). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Economic Emergence of Women (New 14F o r a description o f the m ethodology, see G.S. M addala, LimitedDependent and Qualitative Variables in Econometrics (N ew Y ork, C am bridge U niversity Press, 1983). "E x p en d itu res are defined as the transaction cost, including excise and sales taxes, o f goods and services acquired during th e interview period. E xpenditure estim ates include expenditures for gifts, but exclude purchases o r the portion of purchases directly assignable to business purposes. A lso excluded are periodic credit o r installm ent paym ents on goods o r services previously acquired. T he full cost o f each purchase is recorded when the purchase is m ade, even though full paym ent m ay not have been m ade on the date of purchase. "F am ilies in which the wife w orks as a volunteer are not included in this study. These families were dropped because they could introduce conflicting results. T h at is, they probably m ake use o f the sam e tim esav ing techniques th at em ployed wom en use b ut there is no additional income. 17In addition, if a wife begins to work during the periods covered by the th ird and fourth interviews, th at inform ation is collected. T his was discussed in the longitudinal p art of this study. H ow ever, if th e wife stops w orking, th at inform ation is not recorded until the fifth interview. Hence, a family m ay be m isclassified for up to tw o quarters. 18S. J. Prais and H. S. H outhakker, The Analysis (C am bridge, m a , T he U niversity Press, 1971). of Family Budgets 19Age is th at o f the reference person in the consum er unit. T he refer ence person is the first m em ber m entioned by the survey respondent when asked to “ S tart w ith the nam e of the person or one o f the persons who owns or rents the hom e.” It is w ith respect to this person th at the relationship of o ther consum er unit m em bers is determ ined. T hus, age m ay refer to the husband o r the wife. 20R obert A. Pollack and T erence J. W ales, “ D em ographic Variables, in D em and A nalysis,” Econometrica, N ovem ber 1981, pp. 1 5 33-51. 2'See R obert T. M ichael, The Effect of Education on Efficiency in Consumption, N ational B ureau o f E conom ic R esearch Occasional P aper No. 116 (New Y ork, C olum bia U niversity, 1972). 22T he test statistic is X2 = -2 (lo g L ikelihood R - l o g Likelihood U). T he statistic is asym ptotically chi-square, distributed w ith th e degrees of freedom equal to the num ber o f coefficients set equal to zero. T he log likelihood function for the restricted m odel, represented by R, is ob tained when the function is m axim ized w ith respect to the intercept only. The log likelihood of the unrestricted m odel, U, is obtained when the function is m axim ized w ith respect to all the coefficient estim ates co rre sponding to the intercept and all explanatory variables. 23T he part-tim e earner status coefficient for w om en’s apparel is nega tive. H ow ever, w hen the interaction term “age* part-tim e em ploym ent status o f the wife” is included in the equation, the net effect is th at, for families w ith a reference person over age 24, households w ith wives w orking p art tim e spend m ore on apparel th an those in which the wife does not work. 24W aldm an and Jacobs, “W orking W ives.” "S tro b e r, “ W ives’ L abor F orce B ehavior.” " M a r tin O ’C onnell and D avid E. Bloom, “Juggling Jobs and Babies: A m erica’s C hild C are C hallenges,” Population Trends and Public Policy, Issue no. 12 (W ashington, P o pulation R eference B ureau, F eb ru ary 1987). 23 Variations in holidays, vacations, and area pay levels Higher paying localities often report more liberal leave provisions, but factors other than pay also are important Jo h n E. Bu ckley W orkers with above-average holiday and vacation bene fits are likely to be in areas that have above-average pay levels and th at are located outside the South. F o r bluecollar workers, leave tim e also is likely to be greater in areas w ith larger establishm ents and a relatively high incidence of unionization and m anufacturing activity. D e troit, for example, has these characteristics, and combined holiday and vacation tim e for production workers in the area is about 20 percent (nearly 4 days) above the national average. San A ntonio, in contrast, is an area w ith belowaverage pay, unionization, and m anufacturing activity levels, and with sm aller than average establishm ent em ployments. Leave levels in the area also are considerably below the national norms. The data used in this analysis come largely from sur veys conducted in 68 localities included in the B ureau’s A rea W age Survey ( a w s ) program . This program pro vides inform ation on occupational pay and em ployee benefits derived from a statistical sample o f the N ation’s m etropolitan areas.1 The program provides wage data (straight-tim e earnings) for workers in selected narrowly defined occupations, such as m aintenance m echanic, jan i tor, secretary, and com puter program m er, reflecting the typical practice of setting wage and salary rates by job performed. Inform ation on benefit plans is obtained only for two broad em ploym ent categories— production and office w o rk ers— because em ployers generally provide uniform benefits within each of these groups.2 The occupational wage data collected in the a w s pro gram are used to produce indexes (labeled “ relative pay John E. Buckley is an econom ist in the Division of O ccupational Pay and Em ployee Benefit Levels, B ureau o f L abor Statistics. Digitized for24 FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis levels”) of interarea differences in average straight-tim e weekly or hourly earnings for four employee groups: of fice clerical, electronic data processing ( e d p ) , skilled maintenance, and unskilled plant w orkers.3 These four sets of pay relatives, together with area vacation and holi day practice data for the production and office groups, provide the com pensation inputs for the analysis pre sented in this article. Basic assumptions To perm it com parison of area pay and leave standings, within each m etropolitan area studied the two blue-collar groups are assumed to receive holiday and vacation bene fits equal to the average for the area’s production and related workers. Also, the w hite-collar groups are as sumed to receive the average benefits of office workers. Furtherm ore, because the a w s program does not pro vide sufficient detail on most employee benefits, it was possible to include only paid holiday and vacation data in this study.4 The holiday data are comparable to those published in individual a w s reports, except that workers receiving no paid holidays are included in the calculation of area averages. In contrast, vacation data differ from those published in a w s reports, which describe area vaca tion schedules— th at is, lengths of vacation granted after specified periods of service (such as 5 days’ pay after 1 year of service, 10 days’ after 3 years, and so forth). A c cordingly, to facilitate comparisons of leave time among areas, and to relate leave to area pay levels, the vacation schedules in the a w s reports were converted into esti m ates of the average num ber of vacation days granted by applying national tenure data from the January 1983 C ur rent Population Survey. Finally, national tenure data were used because area data are not available. While these data do not reflect arearelated differences in workers’ seniority, their use still pro vides the benefits of standardization in comparisons across areas: Area-related differences in vacation time for workers with uniform lengths of service are revealed. This use of national tenure data for standardization is similar to the use of national occupational weights for computing area rela tive pay levels. Holidays and vacation days Table 1 contains inform ation on paid holiday and vaca tion provisions in all m etropolitan areas combined and in four broad regions.5 The data span the period 1983-86, when inform ation on benefits was collected at least once in each area.6 W hile m ore than 90 percent of the w ork ers received paid holidays, the num ber of days off varied considerably am ong regions and occupational groups. F o r example, about 8 percent of the Southern workers received 12 or m ore holidays a year, com pared with 17 percent nationwide. Am ong the occupational groups, of fice workers averaged one m ore holiday nationwide than production and related workers (9.7 versus 8.7 holidays). Vacation provisions also differed considerably between office and production workers and among regions, espe cially for workers with a short duration of service. Eightyfive percent of the office workers, for example, had plans giving at least 2 weeks of vacation after 1 year of service, while only 39 percent of the production workers had the Table 1. same provision. If, in each area studied, workers’ seniority with their current employer had followed the national pat tern revealed by the January 1983 C urrent Population Survey, office workers would have averaged one more day of vacation than production workers. As with holidays, va cation benefits were not as liberal in the South as they were in other regions. When estimates of holidays and vacation days in individ ual metropolitan areas were compared, it was found that localities with liberal holiday practices generally had liberal vacation policies as well. (See tables 2 and 3.) Correlation coefficients measuring the degree of this association were 0.81 for production workers and 0.62 for office workers. (Perfect correlation = 1.00.) Despite these degrees of corre lation, some atypical observations emerged. For example, production workers in Paterson-C lifton-P assaic received 10.7 holidays compared with a national average of 8.7, but had only average vacation provisions. Conversely, office workers in San Antonio received only 7.6 holidays but had near-average vacation provisions. Interarea comparisons W hen holidays and vacation days w ere com bined (called total leave here), the highest averages for produc tion workers were reported in two M ichigan m etropolitan areas: Saginaw, with 23.8 days, and D etroit, with 22.4 days. The national average was 18.6 days, while the low est average, 14.4 days, was found in Gainesville, f l . Six of the ten areas with the highest totals were located in the N ortheast; the other four were in the Midwest, although San Jose tied M ilwaukee for 10th place. The 10 areas with Selected paid holiday and vacation provisions, all metropolitan areas and four broad regions, 1983-86 Production and related workers Provision O ffice workers All m etropolitan All Northeast South M idw est W est areas m etropolitan Northeast South M idwest W est areas P a id h o lid a y s Percent of workers in establishments providing paid holidays................... 5 days or more.............. 10 days or more........... 12 days or more........... Average number of holidays.......................... 94 91 48 17 97 96 63 25 92 86 31 8 97 95 60 26 92 88 43 13 99 99 58 17 99 99 76 25 99 98 40 7 99 99 57 19 99 99 55 15 8.7 9.7 7.4 9.6 8.4 9.7 10.5 8.8 9.8 9.7 P a id v a c a t i o n s Percent of workers in establishments providing paid vacations................ 2 weeks or more after 1 year of service............. 3 weeks or more after 5 years of service.......... 4 weeks or more after 20 years of service.......... Average number of vaca tion days......................... 98 98 97 99 98 99 99 99 99 99 39 45 35 38 42 85 88 81 83 86 33 35 27 35 41 52 58 42 46 62 67 71 54 79 65 84 86 77 88 84 9.9 10.3 9.2 10.4 10.0 10.9 11.2 10.6 11.0 11.0 18.6 20.0 16.6 20.0 18.4 20.6 21.7 19.4 20.8 20.7 T o t a l p a id le a v e ' Average number of days... 'Limited to paid holidays and paid vacations. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 25 M O N T H L Y LA B O R R EV IEW February 1989 • Holidays, Vacations, and Area Pay Levels Table 2. Number of leave days for production and related workers and relative pay levels for skilled maintenance and unskilled plant workers, 68 metropolitan areas, 1983-86 Average leave days,1 R elative pay production and related workers levels Metropolitan area Skilled maintenance Unskilled plant Total2 Holidays Vacation Saginaw, m i ....................................................... Detroit, m i .......................................................... Buffalo, n v ......................................................... Trenton, n j ......................................................... Toledo, oh —m i .................................................. 23.8 22.4 21.4 21.4 21.1 12.1 11.1 10.5 10.6 10.6 11.7 11.3 10.9 10.8 10.5 _ _ 111 102 92 105 131 97 — 128 Boston, m a ........................................................ New York, ny - n j .............................................. Newark, n j ........................................................ Paterson-Clifton-Passaic, nj ........................... Milwaukee, w i.................................................... 20.9 20.8 20.8 20.6 20.4 10.1 10.0 10.2 10.7 9.9 10.8 10.8 10.5 9.9 10.5 94 94 94 89 105 97 128 89 96 98 San Jose, c a ..................................................... Nassau-Suffolk, ny ........................................... Indianapolis, in .................................................. St. Louis, MO—IL................................................. San Francisco-Oakland, c a ............................. 20.4 20.3 20.2 20.2 20.1 9.3 10.0 9.9 9.9 9.3 11.2 10.2 10.3 10.3 10.8 115 94 106 103 117 112 98 103 99 143 Chicago, i l ......................................................... South Bend, i n .................................................. York, pa .............................................................. Dayton, o h ......................................................... Green Bay, w i.................................................... 19.9 19.9 19.8 19.7 19.7 9.4 9.6 9.7 9.3 8.8 10.5 10.3 10.1 10.3 10.9 107 90 89 103 97 120 128 110 114 97 Davenport-Rock Island-Moline, ia- il ............. Albany-Schenectady-Troy, n y ........................ Cleveland, o h .................................................... Huntsville, a l ..................................................... Kansas City, mo - k s .......................................... 19.6 19.5 19.4 19.4 19.4 9.7 9.2 9.3 9.4 9.3 9.8 10.2 10.1 10.0 10.1 110 89 102 99 101 130 107 107 90 105 Portland, m e ...................................................... Seattle-Everett, w a .......................................... Worcester, m a .................................................... Cincinnati, oh - ky - in ........................................ Hartford, c t ....................................................... 19.3 19.3 19.3 19.2 19.1 9.2 8.9 9.4 9.1 9.3 10.2 10.4 9.9 10.1 9.8 — — 87 95 90 95 116 94 99 87 Philadelphia, pa - n j ........................................... Providence - Warwick - Pawtucket, ri - m a ......... Minneapolis-St. Paul, mn - wi............................ Richmond, v a .................................................... Gary-Hammond-East Chicago, in .................. Sacramento, c a ................................................. 19.1 19.1 19.0 19.0 18.8 18.8 9.4 9.7 8.9 8.8 9.5 8.4 9.7 9.5 10.1 10.2 9.4 10.4 99 80 105 109 106 107 113 82 110 85 102 — All metropolitan areas.................................... 18.6 8.7 9.9 100 100 Columbus, o h .................................................... Louisville, KY-IN................................................ Pittsburgh, pa ..................................................... Los Angeles-Long Beach, c a .......................... Northeast Pennsylvania.................................... 18.6 18.6 18.5 18.4 18.4 8.6 8.6 8.7 8.6 8.8 10.0 10.0 9.8 9.7 9.6 98 103 101 109 80 92 100 97 97 94 Witchlta, k s ....................................................... Portland, or - wa ............................................... Salt Lake City-Ogden, u t .................................... Fresno, c a ......................................................... Dallas-Fort Worth, t x ........................................... 18.4 18.3 18.3 18.1 17.9 8.8 8.1 8.3 8.2 8.1 9.7 10.2 10.0 9.9 9.8 94 106 94 93 95 — 114 89 94 88 Atlanta, g a ......................................................... Baltimore, m d ..................................................... Omaha, ne - ia .................................................... Billings, m t ......................................................... San Diego, c a .................................................... Anahelm-Santa Ana-Garden Grove, c a ......... 17.7 17.7 17.5 17.3 17.3 17.2 7.9 8.3 7.8 7.3 7.8 7.6 9.7 9.3 9.7 10.0 9.5 9.6 95 100 91 — 106 96 80 82 84 — — 96 Denver-Boulder, c o .......................................... Memphis, tn - ar - ms ........................................ Washington, dc - md - v a ................................... Oklahoma City, o k ............................................. Greenville-Spartanburg, s c .............................. 17.2 17.0 16.9 16.7 16.5 7.4 7.7 7.4 7.3 7.4 9.7 9.3 9.5 9.4 9.1 100 93 — 97 73 88 76 77 84 74 Houston, t x ....................................................... Chattanooga, tn - g a ........................................ Jacksonville, f l ..................................................... New Orleans, l a ................................................ Jackson, m s ...................................................... Norfolk-Virginia Beach-Portsmouth, va - nc ... 16.2 16.1 15.9 15.8 15.7 15.7 7.2 7.5 7.0 7.0 7.1 6.7 9.1 8.7 8.9 8.9 8.6 9.0 100 81 94 99 94 89 72 78 74 68 76 78 Miami, f l ................................................................. Greensboro-Winston-Salem-High Point, nc ... San Antonio, t x ...................................................... Corpus Christi, t x ............................................... Gainesville, f l .................................................... 15.6 15.4 15.4 15.2 14.4 6.5 6.8 6.5 6.3 5.4 9.1 8.6 8.9 8.9 9.0 83 94 79 101 — 71 77 71 69 76 1Limited to paid holidays and paid vacations. 2Because of rounding, the sum of the average number of holidays and the average number of vacation days for a given metropolitan area may not equal the total number of leave days for that area. Note: Dashes indicate that data do not meet publication criteria. Digitized for26 FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis the lowest averages were in the South. Average leave days for office workers were highest in Trenton (23 days) and D avenport-R ock Island-M oline (22.9 days). Jackson, m s , had the lowest average leave (17.7 days). As with production workers, the 10 highest paid leave areas were mostly in the Northeast and Midwest, and the 10 lowest in the South. Com parisons of the total leave and pay levels in tables 2 and 3 uncover the extent to which high leave levels are found in areas w ith high pay levels. The results are sum m arized as follows: Observations of pay levels above the national average Total Corresponding leave levels above the average All groups ............................ 75 53 Skilled maintenance................. Unskilled plant.......................... Office clerical ........................... Electronic data processing....... 23 19 20 13 17 18 12 6 A parallel set of comparisons relating below-average pay to leave levels showed that slightly more than half (57 percent) of all pay observations below the national aver age were m atched with below-average leave provisions. Areas in the Northeast, however, deviated sharply from this pattern, with most localities in the region having belowaverage pay but above-average total leave. Pay levels differed more by area than did leave days. Among office clerical jobs, for example, the highest pay rela tive (Davenport) was 43 percent greater than the lowest (Norfolk and N ortheast Pennsylvania). By contrast, the spread between areas with the highest and lowest leave levels for office workers (Trenton and Jackson) was 30 percent. For both pay and leave, the percentage spreads were considerably greater for blue-collar than for white-collar groups. Because area leave levels often are above average in areas with above-average pay, there was a greater spread in em ployers’ costs for paid leave than in either leave days or pay. In New ark, for example, the average office clerical w orker received about 9 percent m ore leave time than sim ilar workers nationw ide and 2 percent m ore pay. Con sequently, the N ew ark w orker was paid 11 percent above the national average for vacation and holiday benefits.7 The broadest range in leave pay was for the unskilled plant group, with costs in D etroit, at 158 percent of the national average, nearly three tim es those in C orpus Christi, at 56 percent of the national average. Other influences on leave levels Area leave levels appear to be influenced by many of the forces that influence pay levels. Bureau studies of area pay differences generally report higher pay levels in the M id west and West and in areas with larger average establish https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ment employments and greater degrees of unionization. These studies have also found that industrial composition heavily influences a locality’s pay level.8 Similar patterns appeared when average num bers of leave days were examined. Table 4 shows that areas with a high leave level for production workers commonly were located in the Northeast or Midwest and had above-average degrees of unionization, sizes of establishment employ ment, and proportions of manufacturing activity.9 The table also shows that of the 36 areas whose produc tion w orkers’ leave levels were above average, 27 had collective bargaining agreement coverage that was above average, 19 had high average establishm ent employment size, 30 were located in the N ortheast or Midwest, and 24 had high proportions of m anufacturing employment. The type of m anufacturing within an area also is an im portant determ inant of leave levels. F or example, two areas with approxim ately the same percentage of workers in m anufacturing industries, G a ry -H a m m o n d -E a s t C hi cago and G reenville-S partanburg, had quite different leave levels. Gary, with a high concentration of workers in the prim ary metals industries, had a considerably higher leave level than did Greenville, where textile mills dom i nate among m anufacturing activities. There may be interactions among the variables in these simple cross tabulations. For example, large establishments are more likely to have collective bargaining agreements, and, for blue-collar workers, manufacturing establishments are more likely to have collective bargaining agreements than nonmanufacturing establishments. The appendix to this article offers the results of a multiple regression analysis designed to isolate the effect of each variable from others in the study. It thus provides a more precise indication than is given here of how the various forces under consideration influence area leave levels. Data limitations The analysis undertaken com pared pay only to vaca tion and holiday provisions; one should not assume that similar findings would result if total benefit packages had been used. Nationally, vacations and holidays account for only about one-third of all employer costs for benefits, excluding legally required item s.10 The rem aining twothirds are for sick leave, supplem ental pay, insurance, pension and savings plans, and other benefits. A nother note of caution concerns the length of paid vacations. While A rea Wage Surveys report paid vacation provisions that apply after specified lengths of service, area-wide distributions of workers by length of service are not provided. These distributions, however, are needed to estimate averages of the num ber of vacation days avail able to employees. As a substitute, national job tenure data for occupational groups similar to the production and office groups considered here were taken from the January 1983 C urrent Population Survey11 and were used 27 M O N T H L Y LA BO R R E V IE W T a b le 3. N u m b e r o f le a v e w o rk e rs , 68 m e tr o p o lita n d a y s February 1989 f o r o ffic e w o rk e rs a n d • Holidays, Vacations, and Area Pay Levels r e la tiv e p a y le v e ls f o r o ffic e c le r ic a l a n d e le c tr o n ic d a ta p r o c e s s in g a re a s , 1 9 8 3 -8 6 Relative pay levels Average leave days,1 office workers Metropolitan area Electronic data processing Total2 Holidays Vacation Office clerical Trenton, n j .................................................................................. Davenport-Rock Island-Moline, i a - i l .................. Newark, n j .................................................................................. Detroit, m i .................................................................................... New York, n y - n j ................................................................... 23.0 22.9 22.4 22.0 22.0 11.0 10.4 11.1 10.7 10.6 12.1 12.5 11.3 11.3 11.4 96 119 102 114 102 Saginaw, m i ................................................................................ Boston, m a .................................................................................. Hartford, c t ................................................................................ Nassau-Suffolk, n y .............................................................. San Jose, c a ............................................................................ Milwaukee, w i.................................................... 22.0 21.9 21.8 21.8 21.6 21.5 10.9 10.5 10.4 10.8 10.2 10.4 11.1 11.3 11.4 11.0 11.4 11.1 115 96 91 93 115 99 96 95 98 115 97 Paterson-Clifton-Passaic, n j ...................................... San Francisco-Oakland, c a .......................................... Toledo, o h — m i ......................................................................... Albany-Schenectady-Troy, n y ................................... Buffalo, n y .................................................................................. Portland, m e .............................................................................. 21.5 21.5 21.3 21.2 21.2 21.2 10.7 9.9 10.3 10.0 10.2 10.1 10.7 11.6 11.0 11.3 10.9 11.0 93 114 108 98 89 85 98 114 96 97 89 88 Seattle-Everett, w a ............................................................ South Bend, i n ......................................................................... Worcester, m a ........................................................................... Philadelphia, p a - n j .............................................................. Providence-Warwick-Pawtucket, r i - m a ............. Washington, d c - m d - v a ................................................... 21.2 21.2 21.2 21.0 20.9 20.9 10.1 10.3 10.4 10.2 10.2 9.1 11.1 10.9 10.8 10.8 10.6 11.7 108 94 94 98 86 101 95 88 94 94 90 99 Chicago, il .................................................................................. Dayton, o h .................................................................................. Fresno, c a .................................................................................. Sacramento, c a ....................................................................... St. Louis, M O - I L ....................................................................... 20.7 20.7 20.7 20.7 20.7 9.6 10.0 9.8 9.5 9.9 11.1 10.7 10.9 11.2 10.8 101 94 92 103 97 102 89 All metropolitan areas.................................... 20.6 9.7 10.9 100 100 Cleveland, o h .................................................... Los Angeles-Long Beach, c a ...................................... Minneapolis-St. Paul, m n - w i ........................................ Gary-Hammond-East Chicago, in .......................... Indianapolis, i n ......................................................................... 20.6 20.6 20.6 20.5 20.5 9.8 9.8 9.5 9.4 9.9 10.8 10.8 11.1 11.1 10.7 96 114 97 118 96 97 109 95 — 92 Pittsburgh, p a ............................................................................ York, p a ......................................................................................... Anaheim-Santa Ana-Garden Grove, c a ............. Denver-Boulder, c o .......................................... Cincinnati, o h - k y - i n .......................................................... 20.5 20.5 20.4 20.3 20.2 9.8 10.0 9.8 9.3 9.5 10.7 10.5 10.6 11.0 10.7 101 92 105 99 98 96 86 102 103 94 Columbus, o h ........................................................................... Huntsville, a l ............................................................................. San Diego, c a ........................................................................... Kansas City, m o - k s ............................................................ Northeast Pennsylvania..................................... 20.2 20.2 20.2 20.1 20.1 9.4 9.4 9.5 9.5 9.8 10.8 10.8 10.7 10.6 10.3 91 93 100 99 83 95 — 104 97 85 Jacksonville, f l ................................................. Portland, o r - w a ................................................................... Salt Lake City-Ogden, u t ............................................... Richmond, v a ........................................................................... Wichita, k s .................................................................................. 20.0 20.0 20.0 19.9 19.9 9.3 9.0 9.4 9.2 9.7 10.7 11.0 10.6 10.8 10.2 92 102 94 92 104 95 98 101 95 93 Baltimore, m d ............................................................................ Green Bay, w i.................................................... Houston, t x ................................................................................ Atlanta, g a .................................................................................. Miami, f l ..................................................................................... 19.8 19.7 19.7 19.6 19.6 9.3 9.0 8.9 9.0 8.8 10.4 10.7 10.8 10.7 10.8 98 92 109 102 95 95 85 115 103 100 Dallas-Fort Worth, t x ........................................................ Omaha, n e - i a ........................................................................... Chattanooga, t n - g a .......................................................... Billings, m t .................................................................................. New Orleans, l a ..................................................................... 19.5 19.5 19.2 19.1 19.1 9.0 8.7 9.0 8.8 9.1 10.5 10.7 10.2 10.3 10.0 100 93 93 90 96 97 97 — — 97 Louisville, K Y - I N ..................................................................... Oklahoma City, o k ................................................................. Memphis, t n - a r - m s .......................................................... Norfolk-Virginia Beach-Portsmouth, v a - n c .. . Gainesville, f l ........................................................................... Greensboro-Winston-Salem-High Point, n c . . . San Antonio, t x ....................................................................... Greenville-Spartanburg, s c .............................. Corpus Christi, t x .................................................................... Jackson, m s .............................................................................. 19.0 19.0 18.7 18.7 18.5 8.6 8.8 8.4 8.5 8.0 10.4 10.2 10.3 10.2 10.5 18.4 18.4 18.3 17.9 17.7 8.1 7.6 8.0 8.2 7.8 10.3 10.8 10.3 9.7 9.8 95 98 92 83 — 93 89 87 92 94 100 95 90 88 — 97 97 90 — 96 93 — 104 109 105 — — — 98 ’ Limited to paid holidays and paid vacations. 2Because of rounding, the sum of the average number of holidays and the average number of vacation days for a given metropolitan area may not equal the total number of leave days for that area. Note: Dashes indicate that data do not meet publication criteria. Digitized for28 FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis in each area. However, because tenure data relate to a w orker’s length of tim e with the current employer, an area with a vibrant economy and a mobile (and possibly younger) work force is likely to experience a lower aver age tenure than the national average or the average for an area in economic decline. As a result, the actual vacation tim e available in a given area may be higher or lower than is estim ated using national tenure data. Yet another lim itation is th at establishm ent vacation plans may not reflect the tenure profile of covered em ployees. F o r example, a plan’s provisions may allow for additional vacation pay after 20 or 25 years of service, but it may be th at none of the com pany’s employees has as yet attained th at length of service. Finally, the analysis dealt with relative pay and leave provisions th at were in effect sometime between 1983 and 1986, depending on the particular area in question. These provisions, however, are not static. F o r example, benefits provided in a period of economic grow th and prosperity may not survive during a period of retrenchm ent. In the late 1970’s and early 1980’s, for instance, workers in the autom obile m anufacturing industry received 7 to 9 paid personal leave days, but this benefit was dropped when the industry experienced financial difficulties. In recent years, workers in other industries have accepted cutbacks Table 4. Distribution of 68 metropolitan areas by production worker leave levels and selected area characteristics, 1983-86 N um ber of areas w ith leave levels — S elected characteristics Above average At or below average All areas........................................... 36 32 With collective bargaining agreement coverage: Above average ............................. At or below average..................... 27 9 9 23 With average establishment employ ment size: Above average............................. At or below average..................... 19 17 9 23 Region: Northeast...................................... South............................................ Midwest........................................ W est............................................. 14 2 16 4 2 19 3 8 With manufacturing employment as percent of all-industry employment: Above average............................. At or below average..................... 24 12 8 24 in wages or nonwage benefits or both, in exchange for greater job security. Nevertheless, the basic finding of this study— that area wage and leave levels, w hether high or low, often operate in tandem — is likely to stand for some time to come. □ -FOOTNOTES 'Two relatively small Area Wage Survey ( a w s ) areas were excluded from the analysis that follows because the number of occupations re ported was insufficient for interarea calculations. Also, in a few other areas, pay calculations could not be made for one or more of the four occupational groups studied. Prior to 1987, the a w s program consisted of annual surveys con ducted in 70 metropolitan areas selected to represent all 262 Standard Metropolitan Statistical Areas ( s m s a ’ s), excluding those in Alaska and Hawaii, as defined by the U.S. Office of Management and Budget through February 1974. In 1987, this program was replaced by a pro gram of 32 areas studied annually and 58 areas biennially (half one year and half the next). Thus, 61 areas are surveyed each year. The 90 areas now in the program comprise a sample of the 326 metropolitan areas recognized as of October 1984. For additional information on the pro gram, see Laura Scofea, “ b l s area wage surveys will cover more areas,” Monthly Labor Review, June 1986, pp. 19-23. 2In the a w s program, benefit provisions that apply to a majority of the production (or office) workers in an establishment are considered to apply to all such workers in the establishment. Conversely, a provision is considered nonexistent if it applies to fewer than a majority of the production (or office) workers. "Occupations included are as follows: Office clerical— secretary; stenographer I and II; typist I and II; file clerk I, II, and III; messenger; switchboard operator; order clerk I and II; accounting clerk I, II, III, and IV; payroll clerk; and key entry operator I and II. Electronic data processing— computer systems analyst; computer programmer; and computer operator. Skilled maintenance— carpenter; electrician; painter; machinist; mechanic (machinery); pipefitter; motor vehicle me chanic; and tool and die maker. Unskilled plant— janitor, porter, or cleaner; and material handling laborer. Descriptions of the surveyed jobs are included in individual area bulletins. Roman numerals are used to identify skill levels studied sepa rately in many of the occupations; the higher the numeral, the higher is the degree of difficulty and responsibility associated with the job. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4The incidence of health and retirement plans is developed in the a w s program, but the detailed provisions of these plans are not. The provi sions of paid personal leave plans are collected, but not in sufficient detail to calculate the average number of days available to employees. "Regions are defined as follows: Northeast— Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont; South— Alabama, Arkansas, Delaware, Dis trict of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, West Virginia; Midwest— Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Wisconsin; West— Arizona, California, Colo rado, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washing ton, Wyoming. 6Until 1987, information on employee benefits was generally collected in an area once every 3 years. Beginning in 1988, this information will be collected every fourth year. 7Relative leave costs can be computed for each area/occupational group for which relative pay levels are shown by converting the area’s leave days into a percentage of the national average and multiplying that percentage by the area’s pay relative. In Newark again, for example, leave time for office workers (22.4 days) was 109 percent of the national average (20.6 days). Multiplying this percentage by the Newark office clerical pay relative (102) and then dividing by 100 yields a leave cost relative of 111. 8See, for example, Stephen E. Baldwin and Robert S. Daski, “Occupa tional pay differences among metropolitan areas,” Monthly Labor Review, May 1976, pp. 29-35; and Wage Differences among Metropoli tan Areas, 1986, Summary 8 7 -4 (Bureau of Labor Statistics, June 1987). See also George E. Johnson, “Intermetropolitan Wage Differentials in the United States,” in Jack E. Triplett, ed., The Measurement of Labor Cost (Chicago, University of Chicago Press, 1983), pp. 309-32. 29 M O N T H L Y LA BO R R E V IE W February 1989 Holidays, Vacations, and Area Pay Levels • and benefits,” M o n th ly L a b o r R e v ie w , October 1987, pp. 3-11. 11For a discussion of job tenure, see Ellen Sehgal, “Occupational mobility and job tenure, 1983,” M o n th ly L a b o r R e v ie w , October 1984, pp. 18-23. 9Data on collective bargaining agreement coverage, average establish ment employment size, manufacturing activity, and regional leave level are from the Bureau’s Area Wage Survey program. 10See Felicia Nathan, “Analyzing employers’ costs for wages, salaries, APPENDIX: Regression analysis A regression model was developed to identify forces in fluencing area leave days (the dependent variable). The six independent (explanatory) variables in the model were area pay level, manufacturing employment as a percent of total area employment, percent of workers covered by collective bargaining agreements, area population size, average em ploym ent w ithin area establishm ents, and geographic region. Pay relatives for skilled maintenance workers were used in the reported analysis of production and related workers, and pay relatives for office clerical workers in the office worker regression. Results were similar when both skilled maintenance and unskilled plant worker relatives were included in the blue-collar regression and when office clerical and electronic data processing worker relatives were included in the white-collar study. The results of the regression analysis are shown in table A - 1. As indicated by the R 2 values, the model had much success in explaining area differences in leave days, ac counting for m ore than four-fifths of the interarea vari ation for production workers and three-fourths for office workers. F or each of the two groups, a statistically signifi c a n t1 positive relationship at the 5-percent level or lower emerged between area leave and area pay levels. Areas with relatively high pay levels tend to be m ore liberal in leave provisions as well. Consequently, one cannot ex plain in terarea differentials in pay rates by claim ing offsetting differences in leave provisions. F o r production workers, other independent variables being held constant, an increase of 1 percentage point in an area’s average pay level was associated with an increase of 0.041 day in the area’s leave time. Several other significant relationships emerge from the model. For example, the coefficients show interesting re gional differences, with all regional coefficients significantly above the South— the region against which the other three regions were compared.2 For office workers, other things being equal, area leave time in the N ortheast was 2.252 days higher than in the South. Two establishment characteris tics— unionization and average employment size— also provided significant explanations of area leave differences, but only for production workers. F u rth e rm o re , a sig nificant positive relatio n sh ip is shown between area leave days and the degree of m anu facturing activity, but again only for production workers. Note, however, th at the regression model did not take account of area differences in type of m anufacturing, and, as mentioned earlier, type of m anufacturing is an im por Digitized for30 FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Table A - 1. Regression analysis of area differences in leave days, 1983-86 Production and Item related workers O ffice w orkers Constant............................................. 9.649** (5.97) 13.478** (9.08) Pay level............................................. .041* (2.11) .056** (3.16) Manufacturing employment................ .024* (2.45) -.005 (-.72) Unionization........................................ .031** (3.16) Area population.................................. -.001 (-.79) -.001 (-.74) Average establishment employment... .007* (2.52) .003 (1.22) Northeast............................................ 2.035** (5.10) 2.252** (9.51) Midwest............................................... 1.356** (3.64) 1.339** (6.05) West.................................................... .875* (2.26) .885** (3.00) ........................................................ .82 .75 Value............................................... 31.00** 19.94** 62 67 R2 F .002 (.10) Number of areas studied.................... Note : Numbers in parentheses below coefficients are r-statistics. R 2 is the coefficient of determination adjusted for degrees of freedom. It shows the percentage of total variation in area leave days that is explained by regression analysis. F statistics are measures of the overall significance of the regres sions. ** = Significant at the 0.01 level. * = Significant at the 0.05 level. tant determ inant of leave and pay levels. The rem aining variable tested in the model, area popu lation size, was not statistically related to leave levels for either of the two occupational groups. ---------- FOO TNO TES ---------- 'All estimated regression coefficients were evaluated at the 5- and 1percent significance level. An estimated regression coefficient is said to be significant at the 5-percent level if the null hypothesis that a coeffi cient is zero would be rejected only 5 percent of the time in repeated sampling. Similarly, the coefficient is significant at the 1-percent level if the null hypothesis would be rejected only 1 percent of the time. Coefficients of the regional variables shown in table A - 1 indicate the difference in leave relatives resulting from being located outside the South, whose value is embodied in the equation’s constant term. A regression equation’s constant term shows the estimated value of the dependent variable when all the independent variables are zero, includ ing, in this instance, when an area is in the South. Labor market changes and adjustments: how do the U.S. and Japan compare? Both countries are flexible in how they react to structural changes in the labor market, with each using different methods and programs to adjust to such changes rather quickly R obert W. Bed C l in t o n R . Sh n a r z ik a n d ie l l s Japan is beginning to experience the same sort of eco nom ic restru ctu rin g th at the U nited States has faced during the last decade or so. A lthough m anufacturing em ploym ent is declining (both in an absolute and relative sense), it still plays a larger role in total em ployment and output in Japan than in the U nited States. Large trade deficits in the aggregate or in specific in dustries m ay lead to w orker dislocations. The ability of the labor m arket to respond and adjust to change can be considered a competitive factor. F or example, if workers can move quickly from declining industries to growing industries, the economy can be m ore responsive to inter national com petition. Because m uch of U.S. trade is in m erchandise, not services, the m anufacturing industry plays a prom inent role in international trade. How, then, does the continued job shift to services affect our ability to lower our trade deficit? This article analyzes labor m arket flexibility and ad justm ent capabilities of Japan and the U nited States. It examines the job shift to services and trends in wages, productivity, and exchange rates to judge the interna tional competitive position of each country. Robert W. Bednarzik and Clinton R. Shiells are international economists in the Bureau of International Labor Affairs, U.S. Department of Labor. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Job shift to services The num ber and proportion of jobs in the service sector of Japan and the U nited States are increasing. However, the m agnitude and the timing of the increase are different. In 1987, for example, 71 percent of U.S. workers were employed in services, com pared with 58.5 percent of Japa nese workers. (See table 1.) In 1960, Japanese agricultural employment constituted 30 percent of total employment, and was higher than em ploym ent in m anufacturing. By 1987, agricultural em ploym ent in Japan had dropped to 8 percent of total employment. This is almost 3 times higher than in the U nited States, where agricultural employment as a per cent of the total has been declining for m ost of this century. The m anufacturing share of total employment peaked in Japan in the early 1970’s at around 28 percent, slipping to 24 percent in 1987. In the U nited States, the share has been drifting downward for a m uch longer pe riod, and fell below 19 percent in 1987. (See table 1.) From an employment standpoint, the service sector is dom inant in both countries. A griculture and m anufactur ing play a larger role in Japan than in the U nited States, but their share in Japan is declining. A lthough the two countries are following the same path, the shift from an agricultural to an industrial economy, then to a service or information-based economy started m uch sooner in the 31 M O N T H L Y LA B O R R E V IE W February 1989 Labor Market Adjustments in U.S. and Japan • in the U nited States and Japan, 1970—85:2 United States and has, therefore, progressed further. Does the shift to services, especially in the United States, imply that the United States and Japan are losing their industrial base? Given that around 70 percent of U.S. m er ch an d ise e x p o rts are in m a n u fa c tu rin g , a d eclin in g industrial base would make it more difficult for the United States to lower its trade deficit unless exports of services increase dramatically. So, is the job shift to services an other factor contributing to the large U.S. merchandise trade deficit? A recent study by R onald K utscher and Valerie Personick examined w hether changes in em ploym ent and output in m anufacturing declined either in absolute or in relative term s.1 K utscher and Personick noted th at an absolute decline is m ore serious than a relative one, and that production declines are a m ore alarm ing signal of a reduction in the industrial base th an em ploym ent de clines. F or example, a decline in em ploym ent need not necessarily signify an erosion of the industrial base if real output is still increasing. Manufacturing employment in the United States in abso lute terms has been around 20 million for the last 20 years. At 19.2 million in 1987, it was only slightly below its pre recession level. A lthough the percentage of total U.S. employment in manufacturing has declined, real U.S. manu facturing output as a percent of real gross domestic product ( g d p ), at 22 percent in 1985, has actually increased some what recently. The following tabulation shows real m anu facturing output as a percent of real gross domestic product Table 1. 1970 1975 1980 1985 United States (1982 dollars)............. 21.1 20.5 21.2 22.1 Japan (1981 yen) ........... 25.9 25.9 29.3 35.0 On this basis, the U.S. industrial base at the aggregate level is not disappearing. However, there have been steady declines in both output and employment for individual U.S. industries such as steel, leather, and tires. A recent Office of Technology Assessment study shows that only 6 of 21 m ajor manufacturing industries experi enced an increasing share of gross national product from 1979 to 1986— about enough of a rise to offset the decline in the majority of industries. Interestingly, nonelectrical machinery, which includes computers, was the only m ajor industry showing a big increase in shares. The study con cludes that if it were not for the computer industry, the U.S. economy might well be deindustrializing.3 In Japan, moreover, m anufacturing output as a percent of gross domestic product increased substantially from 29 to 35 percent between 1980 and 1985. Regardless of the reason, m anufacturing accounts for a m uch higher per centage of gross domestic product in Japan than in the U nited States. M ore im portantly, the gap between the two countries is widening. This implies that as recently as 1985, the Japanese were successfully com peting interna tionally in m anufacturing. Can the U nited States keep pace? A discussion of these issues follows. Percent distribution of civilian employment by economic sector, 1960-87 Goods-producing sector Service s e c to r A gricultural sector1 M anufacturing T otal“1 Y ear United States Japan U nited States Japan United States Japan United States Japan 1960 ................................................. 1965 ................................................. 8.5 6.3 29.5 22.7 33.4 34.2 28.5 32.5 26.1 27.0 21.7 24.8 58.1 59.5 41.9 44.8 1970 1971 1972 1973 1974 ................................................. ................................................. ................................................. ................................................. ................................................. 4.5 4.4 4.4 4.2 4.2 16.9 15.5 14.4 13.1 12.6 33.1 31.7 31.4 32.0 31.4 35.7 35.9 36.2 37.0 36.8 26.4 24.7 24.3 24.8 24.2 27.4 27.4 27.3 27.8 27.6 62.3 63.8 64.2 63.8 64.5 47.4 48.6 49.4 49.9 50.6 1975 1976 1977 1978 1979 ................................................. ................................................. ................................................. ................................................. ................................................. 4.1 3.9 3.7 3.7 3.6 12.4 11.9 11.6 11.4 10.8 29.5 29.6 29.7 30.0 30.2 35.6 35.6 35.1 34.8 34.7 22.7 22.8 22.7 22.7 22.7 26.1 25.8 25.3 24.8 24.6 66.4 66.5 66.6 66.3 66.3 52.0 52.5 53.3 53.8 54.5 1980 1981 1982 1983 1984 ................................................. ................................................. ................................................. ................................................. ................................................. 3.6 3.5 3.6 3.5 3.3 10.1 9.7 9.4 8.9 8.5 29.3 28.9 27.2 26.8 27.2 35.1 35.0 34.5 34.4 34.5 22.1 21.7 20.4 19.8 20.0 25.0 25.1 24.7 24.8 25.2 67.1 67.6 69.2 69.7 69.4 54.8 55.3 56.0 56.6 56.9 1985 ................................................. 1986 ................................................. 1987 ................................................. 3.1 3.1 3.0 8.4 8.1 8.0 26.9 26.6 26.0 34.6 34.2 33.5 19.5 19.1 18.6 25.3 24.9 24.3 70.0 70.4 71.0 57.0 57.6 58.5 1 Includes aariculture, forestry, hunting, and fishing. 2 Includes manufacturing, mining, and construction. 3 Includes transportation, communication, public utilities, trade, finance, public administration, private household services, and miscellaneous services. Digitized for 32 FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Note: Data have not been fully adjusted for comparability with U.S. definitions. Also, some employment could not be distributed by economic sector. Because of rounding, subtotals may not add to totals. Source: S ta tistica l S u pplem ent to Inte rn a tion a l C om parisons o f Unem ploym e rit , Bulletin 1979 (Bureau of Labor Statistics, June 1988). Manufacturing productivity and labor costs The ability of the U.S. m anufacturing industry to com pete internationally hinges on several factors, such as the cost and quality of the product. This in tu rn depends on overall labor costs, exchange rates, and labor productivity rates.4 A n exam ination o f some recent trends reveals that the U.S. com petitive situation is improving relative to Japan. In 1987, as a result of a labor productivity increase in m anufacturing (for the fifth consecutive year) and contin ued wage restraint, the U nited States showed a decline in unit labor cost— a useful m easure of competitiveness. In assessing changes in unit labor costs in competitive terms, changes in the m arket value of each country’s currency m ust be taken into account. The U.S. dollar has depreci ated strongly against the yen and other currencies since 1985. Therefore, the relative im provem ent in U.S. m anu facturing labor costs m easured in national currency has been greatly enhanced by exchange rate movement. Ja pan’s unit labor costs, m easured in U.S. dollars, rose more than 40 percent in 1986 and 13.5 percent in 1987. (See table 2.) M anufacturing output growth, which is related to a variety of factors, including im proved international com petitiveness, was higher in the U nited States than in Japan during 1986. A lthough outp u t grow th slowed signifi cantly in 1986 in Jap an , possibly a reflection of the appreciating yen, it recovered quickly in 1987. D uring th at year, the percent change in output per hour in m anu facturing was once again m ore than th at in the U nited S tates. M a n u fa c tu rin g em p lo y m en t, w hich declined slightly in Japan in 1986, dropped significantly (1.1 per cent) in 1987. A t 14.2 million in 1987, m anufacturing em ploym ent in Japan is still very near its all-time high of 14.5 million, reached in 1985. In the U nited States, the com parable m anufacturing em ploym ent figure has hovered around 20.9 million over the past 4 years.5 However, there have been significant em ploym ent shifts among individual m anufacturing in dustries. Also, some w orker groups were m ore likely to suffer job losses than other groups. Employment changes and job losses Given the size of the m erchandise trade deficit and the recent swings in exchange rates, there is little doubt that distribution of em ploym ent by industry has been affected. In theory, exchange rate changes affect the m ovement of labor between industry sectors prim arily through changes in export and im port prices. D epreciation of the dollar raises dollar prices of U.S. im ports, leading to increased production and em ploym ent in im port-com peting indus tries. Also, depreciation lowers foreign currency prices of U.S. exports, m aking them m ore com petitive in interna tional m arkets, which leads to increased production and em ploym ent in export-oriented industries. The result is an https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Table 2. Changes in productivity and related measures in manufacturing, United States and Japan, 1960-87 [In percent] Y ear United States Japan Output per hour: 1960-87 ....................................... 1960-73 ........................................ 1973-87 ........................................ 2.8 3.2 2.5 7.7 10.3 5.3 1973-79...................................... 1979-87...................................... 1.4 3.4 5.5 5.1 1985 ........................................ 1986 ................................... 1987 ........................................ 5.1 3.7 2.8 7.3 1.7 4.1 Hourly compensation (in national currency): 1960-87 ....................................... 1960-73 ...................................... 1973-87 ..................................... 6.2 5.0 7.3 11.3 15.1 8.0 1973-79...................................... 1979-87...................................... 9.5 5.7 12.8 4.5 1985 ........................................ 1986 ........................................ 1987 ........................................ 5.3 3.3 1.3 4.9 4.9 1.4 Unit labor costs (in national currency): 1960-87 ....................................... 1960-73 ........................................ 1973-87 ........................................ 3.3 1.8 4.7 3.4 4.3 2.6 1973-79...................................... 1979-87...................................... 8.0 2.2 6.9 -0.6 1985 ........................................ 1986 ................................. 1987 ........................................ 0.2 -0.4 -1.5 -2.3 3.2 -2.5 Unit labor costs (in U.S. dollars): 1960-87 ............................... 1960-73 ........................................ 1973-87 ........................................ 3.3 1.8 4.7 6.9 6.6 7.3 1973-79...................................... 1979-87 .................................... 8.0 2.2 10.8 4.7 1985 ..................................... 1986 ............................... 1987 ........................................ 0.2 -0.4 -1.5 -2.7 46.1 13.5 Output: 1960-87 ........................................ 1960-73 ........................................ 1973-87 ........................................ 3.4 4.8 2.2 8.7 12.8 6.2 1973-79 ................................... 1979-87...................................... 1.9 2.4 3.6 6.2 1985 ...................................... 1986 ........................................ 1987 ........................................ 4.3 2.8 3.8 8.4 0.6 3.4 Note : Rates of change based on the compound rate method. "Trends in manufacturing productivity and labor costs in the U.S. and abroad," M o n th ly L a b o r R e v ie w , December 1987, pp. 25-30; and "Interna tional Comparisons of Manufacturing Productivity and Labor Cost Trends 1987," N e w s R e le a s e , 88-326 (U.S. Department of Labor, July 6,1988). Source : im provem ent in the trade balance, at least once trade volumes have had time to adjust to price changes. It is difficult to tie changes in the U.S. trade deficit to changes in exchange rates on a country-by-country basis. The extent of U.S. dollar depreciation varies substantially across trading partners. Also, there are several measures of currency movements, differing in their estimates of change depending on the methodology used.6 W hat is im portant for the U.S. trade deficit is m ovement of the U.S. dollar against a basket of other currencies. Based on the Federal Reserve System Board of G overnors widely 33 M O N T H L Y LA BO R R E V IE W February 1989 used 10-country inflation-adjusted exchange rate index, the U.S. dollar had begun to appreciate in 1979, peaked in 1985, and had nearly fallen back to its 1979 level as of fourth-quarter 1987.7 (See table 3.) A M organ G uaranty T rust Co. index cited by b l s shows a sim ilar tren d .8 New b l s dollar exchange rate indexes in national currency term s for export and im port levels separately show that the trade-w eighted value of the dollar fell 33 percent for im ports and 27 percent for exports between the first quar ter of 1985 and the last quarter of 1987.9 Paralleling exchange rate m ovem ent, the U.S. m er chandise trade balance worsened between 1980 and late 1986, but has im proved subsequently. G row th in export volume, which began in 1984, finally outpaced the contin ued grow th in im port volume in 1987. (See table 4.) It is surprising that im port volume continued to rise after the dollar weakened. Possible explanations of this phenom e non include foreign exporters absorbing some of the currency shift and increased trade with countries whose currency did not appreciate against the dollar.10 Of course, import and export volume varies by industry. Useful measures of “ trade sensitivity” are: for imports, the percentage of an industry’s new supply accounted for by imports, and for exports, the percentage of an industry’s shipments that are exported. In 1985, export-oriented in dustries included chemicals, m achinery, transportation equipment, and instruments. All of these industries experi enced declines in export shares during the period of dollar appreciation. (See table 5.) Table 3. Foreign exchange rates, 1967-87 [Currency units per U.S. dollar, except as noted] Period Japan (yen) Multilateral trade-weighted value of the U.S. dollar Nominal Real' March 1973............................. 261.83 100.0 100.0 1967.................................... 1968.................................... 1969.................................... 362.13 360.55 358.36 120.0 122.1 122.4 _ 1970.................................... 1971.................................... 1972.................................... 1973.................................... 1974.................................... 358.16 347.78 303.12 271.30 291.84 121.1 117.8 109.1 99.1 101.4 98.8 99.2 1975.................................... 1976.................................... 1977.................................... 1978.................................... 1979.................................... 296.78 296.95 268.62 210.38 219.02 98.5 105.6 103.3 92.4 88.1 93.9 97.3 93.1 84.2 83.2 1980.................................... 1981.................................... 1982.................................... 1983.................................... 1984.................................... 226.63 220.63 249.06 237.55 237.45 87.4 102.9 116.6 125.3 138.3 84.8 100.8 111.7 117.3 128.5 1985.................................... 1986.................................... 1987.................................... 238.47 168.35 144.60 143.2 112.2 96.9 132.0 103.3 90.6 'Adjusted by changes in consumer prices. Note : Dashes indicate data not available. Source : Board of Governors of the Federal Reserve System. Digitized for34 FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis — _ _ Labor Market Adjustments in U.S. and Japan Table 4. U.S. merchandise exports and imports, 1979-87 [In billions of 1982 dollars] Year Exports Im ports Net exports 1979........................................ 1980...................................... 1981........................................ 218.2 241.8 238.5 277.9 253.6 258.7 -59.7 -11.8 -20.2 1982...................................... 1983.................................... 1984............................. 214.0 207.6 223.8 249.5 282.2 351.1 -35.5 -74.6 -127.3 1985................................... 1986............................... 1987'................................. 231.1 244.6 282.0 370.2 420.2 443.5 -139.1 -175.6 -161.5 'Preliminary. Data are based on National Income and Product Accounts; season ally adjusted annual rates. Note : Source : U.S. Department of Commerce, Bureau of Economic Analysis. Im port-sensitive industries, in which im port penetra tion rose as the dollar strengthened, included apparel, leather, prim ary metals, machinery, transportation equip ment, instrum ents, and miscellaneous m anufactures. As shown, some industries are both export-oriented and im port-sensitive. Employment changes. A lthough m anufacturing em ploym ent in the U nited States has increased during the current economic recovery, it has not returned to its pre recession peak in 1979. However, some import-sensitive m anufacturing industries, such as prim ary metal indus tries, apparel and other textile products, and leather and other leather products, have continued to experience job losses. (See table 6.) It is not clear how m uch appreciation of the dollar may have contributed to these long-term employm ent declines. M any im port-sensitive industries have experienced continuing em ploym ent declines largely u n related to movements in the exchange rate. On the export side, em ploym ent in some export-oriented industries declined following the dollar’s appreciation. However, it is difficult to isolate effects of currency appreciation from other fac tors (such as slow grow th in Europe). Finally, many industries are in the service sector where the level of trade is m uch lower than in m anufacturing, and where employ m ent grow th has been strong during periods of depre ciation as well as appreciation. Job losses. M ajor structural economic changes such as those in international competition, technological change, deregulation, and dem and shifts can lead to job losses, often referred to as “structural” unem ploym ent. There are several useful measures of structural unem ployment: long-term unem ploym ent, job-loser unem ploym ent, and the num ber of displaced workers. A lthough the evidence is mixed as to which of the two countries is experiencing greater “structural unem ploym ent,” both countries still have a problem. Table 5. U.S. imports as a percent of new supply (import penetration) and U.S. exports as a percent of product shipments (export proportion), by major manufacturing group, selected years Export proportion Im port penetration Industry 1972 1979 1985 1972 1979 1985 All manufacturing................................... 6.1 7.8 11.7 5.6 8.5 7.9 F o od............................................... Tobacco.......................................... Textiles........................................... Apparel........................................... Lumber........................................... 3.9 0.6 5.6 7.0 9.4 4.3 0.6 4.6 12.7 10.4 4.3 0.5 7.7 22.4 10.5 2.9 5.7 2.9 1.2 4.1 4.9 11.8 6.0 3.4 7.6 3.6 8.1 3.6 1.8 5.3 Furniture......................................... P aper............................................. Printing and publishing................... Chemicals....................................... Petroleum refining.......................... 2.6 5.6 1.0 3.2 7.1 4.5 6.7 1.0 4.2 7.3 9.2 7.1 1.2 6.5 9.5 0.6 4.1 1.3 7.6 1.9 1.7 5.1 1.7 12.8 1.5 1.6 4.3 1.2 11.6 3.1 Rubber............................................ Leather........................................... Stone, clay, and glass.................... Primary metals............................... Fabricated metals.......................... 4.7 15.9 3.7 8.9 2.5 5.4 29.4 4.8 11.0 3.6 6.3 49.6 7.6 16.6 5.5 3.1 1.8 2.4 2.8 3.9 4.8 5.2 3.8 4.0 5.6 3.9 6.1 3.4 3.7 4.7 Machinery, except electrical........... Electrical machinery....................... Transportation equipment.............. Instruments.................................... Miscellaneous manufactures.......... 5.4 7.6 9.8 6.7 13.3 7.8 11.0 11.8 10.3 20.0 13.9 17.0 18.4 13.7 35.0 14.9 6.7 9.2 12.6 7.6 20.3 12.2 13.3 18.3 12.7 20.1 10.1 13.0 15.5 8.1 Note : New supply is defined as imports plus domestic product shipments. Imports as a percent of new supply is a commonly used measure of import penetration. Source : U.S. Department of Commerce. Historically, the unem ploym ent rate in Japan has been lower than in the U nited States, even when adjusted for conceptual differences.11 However, a different view results when a m ore com prehensive m easure of labor underutili zation is used: the unem ploym ent gap between the two countries is not as wide as it first appears because the broader m easure includes groups in which a substantial part of Jap an ’s labor underutilization falls. (See table 7.) F rom a policy standpoint, the focus is usually on w ork ers w ho m ay have d ifficulty becom ing em ployed or re-employed. This latter group would include workers who are involuntarily out of work, often referred to as displaced workers. A lthough both countries attem pt to count such workers, the definitions are so different that the data are not com parable. However, indirect measures of displacem ent are available, derived from data collected in regular labor m arket surveys. In m ost industrialized countries, these surveys collect data on reasons for unem ployment: new entrants, re-entrants, job leavers, and job losers. The latter group includes mostly workers whose jobs ended and who immediately began looking for work. W orkers involved in a plant closing would be tabulated as job losers. W orkers on layoff are also included among job losers, but they are excluded from this analysis because our m ain interest is workers who have perm anently lost their jobs. The percentage of total unem ploym ent that was accounted for by job losers was sim ilar in both countries, and rising in the 1980’s. Perm anent job loss accounted for around a third of total unem ploym ent in 1986 in both countries.12 It is also useful and straightforw ard to com pare long term unem ploym ent, defined here as being jobless for 1 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis year or longer. A lthough Japan’s unem ploym ent rate is less than half the U nited States rate, long-term unem ploy m ent as a percent of total unem ploym ent was about twice as high in Japan than in the U nited States in 1986. A ppar ently, once a worker becomes unemployed, it is more difficult for him or her to become re-employed in Japan than it is for a worker in the U nited States. Demographic limitations on flexibility The characteristics of workers are im portant in understand ing overall labor market flexibility. Also, the analysis of significant past and future employment and population trends will help explain unemployment differences between the United States and Japan and give some idea of the ability of each labor force to adjust to structural change. The labor force participation rate was roughly the same in each country in 1986. This masks im portant age-sex differences. (See table 8.) F or example, the rate for teenag ers (defined as age 15 and over for Japan and age 16 and over for the U nited States) is very low in Japan, 18 per cent, co m p ared w ith 55 p ercen t for U.S. teenagers. Japanese teens are less likely to work even part time while in school. This partially explains why teenage unem ploy m ent in Japan is low, which also helps to keep overall unem ploym ent low. A rough estim ate was that in 1985, the overall U.S. unem ploym ent rate would be about 0.8 percentage point lower if U.S. teenagers had the same unem ploym ent rate and labor force participation rate as teenagers in Jap an .13 In Japan, most would-be workers do not pursue their first job until all formal schooling is completed. 35 M O N T H L Y LA B O R R E V IE W February 1989 • In contrast, a m uch greater percentage of older w ork ers, m ainly men, stay longer in the labor force in Japan than do com parable workers in the U.S. labor force. For example, in 1986, the labor force participation rate for men 55 years of age and over in Japan was 61 percent, versus 37 percent for their U.S. counterparts. These m agnitudes and patterns of labor force participa tion are im portant in gauging the flexibility of the labor force. This is easily seen by examining trends in fertility rates and population structure. All industrialized countries have experienced declining fertility rates since the mid-1960’s. As a result, their popu lations are aging. The decline in fertility rates started sooner in Japan, falling alm ost continuously since the late 1940’s. Thus, the aging of the w ork force is occurring m ore rapidly. This shift m ay have some effect on the general productivity of the work force, although it is not entirely clear to w hat extent the experience and skills of older workers may offset the greater flexibility, mobility, and energy of younger workers. M oreover, by the year 2000, the percentage of the pop ulation in Japan age 65 years and older will pass the U.S. percentage, and the gap will widen into the next cen tu ry .14 Given the high proclivity of Japan’s older workers Table 6. Labor M arket Adjustments in U.S. and Japan to stay in the labor force, the aging population structure is perhaps their num ber one problem in m aintaining a flexi ble labor force and in keeping unem ploym ent low. Also, these trends may lead to m ismatches between jobs and worker skills. W hen there are a large num ber of older workers rem aining in the labor force whose skills may become obsolete and there is a low participation rate among younger workers, it is not surprising, especially given Ja p a n ’s low unem ploym ent rate, for skill m is m atches to occur. In time, an aging w ork force will be a problem for all industrialized countries. However, in the near future, the declining fertility rates, especially in the U nited States, will help low er the overall unem ploym ent rate, as a sm aller num ber of younger workers, whose unem ploy m ent rate is higher than that for adult workers, will enter the labor force. Unless the skills of workers are continu ally upgraded, especially am ong the growing proportion that are older, the U nited States may soon face significant m ism atch problems. Trends in labor force participation are also im portant. F or example, is labor force participation declining among older workers in Japan? This is indeed the case, which will soften the im pact of Japan’s aging population structure. Nonagricultural U.S. employment by industry, selected years, annual averages [In thousands] Industry Total.......................................................................... 1973 1979 1982 1986 76,790.0 89,823.0 89,566.0 99,525.0 1987 102,310.0 Mining.............................................................. 642.0 958.0 1,128.0 777.0 721.0 Construction..................................................... 4,097.0 4,463.0 .3,905.0 4,816.0 4,998.0 Manufacturing............................................................ 20,154.0 21,040.0 18,781.0 18,965.0 19,065.0 Durable goods..................................................................... Lumber and wood products............................................. Furniture and fixtures.................................................. Stone, clay, and glass products....................................... Primary metal industries....................................... Fabricated metal products............................................. 11,891.0 759.2 506.8 715.7 1,259.1 1,651.1 12,760.0 766.9 497.8 708.7 1,253.9 1,717.7 11,039.0 597.5 432.0 576.9 921.9 1,426.9 11,230.0 710.3 498.2 585.1 751.7 1,423.3 11,218.0 739.6 518.2 582.2 749.4 1,407.4 Machinery, except electrical............................................ Electrical and electronic equipment................................. Transportation equipment................................................ Instruments and related products..................................... Miscellaneous manufacturing........................................... 2,089.0 1,969.5 1,929.3 557.3 454.4 2,484.8 2,116.9 2,077.2 691.2 444.8 2,243.9 2,008.0 1,734.7 715.5 382.1 2,052.8 2,116.3 2,025.1 706.2 361.3 2,023.4 2,084.1 2,048.2 693.3 369.6 Nondurable goods....................................................... Food and kindred products............................................. Tobacco manufactures .................................................... Textile mill products....................................................... Apparel and other textile products................................... Paper and allied products................................................ 8,262.0 1,714.8 77.5 1,009.8 1,438.1 704.6 8,280.0 1,732.5 70.0 885.1 1,304.3 706.8 7,741.0 1,635.9 68.7 749.4 1,161.1 662.4 7,734.0 1,609.3 58.6 703.2 1,100.8 673.7 7,847.0 1,623.9 54.3 724.5 1,099.9 679.0 Printing and publishing..................................................... Chemicals and allied products.......................................... Petroleum and coal products...... .................................... Rubber and miscellaneous plastics products................... Leather and leather products........................................... 1,110.7 1,037.6 192.9 692.2 284.0 1,235.1 1,109.3 209.8 781.6 245.7 1,272.1 1,075.1 200.8 696.9 218.9 1,458.5 1,021.8 168.8 790.3 149.1 1,507.2 1,025.6 165.3 823.1 143.7 Transportation and public utilities............................................ Wholesale and retail trade...................................................... Finance, insurance, and real estate........................................ 4,656.0 16,607.0 4,046.0 5,136.0 20,192.0 4,975.0 5,082.0 20,457.0 5,341.0 5,255.0 23,683.0 6,283.0 5,385.0 24,381.0 6,549.0 Services.............................................................................. 12,857.0 17,112.0 19,036.0 23,053.0 24,196.0 Government............................................................................. 13,732.0 15,947.0 15,837.0 16,693.0 17,015.0 Source: Compiled from the official statistics of the U.S. Department of Labor. Digitized for36 FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Table 7. Severity of joblessness in the United States and Japan, 1979 and 1986 [In percent] ________________________________________ Characteristic U.S. Japan 5.8 7.0 2.1 2.8 Unemployment rate1 1979.................................................... 1986.................................................... Percent of total unemployment sectors increased during the 1973-86 period. In m anufac turing, the percentage of workers w ithout a high school diplom a decreased substantially. The same was true for workers in service-producing industries. The following tabulation, based on data from the Bureau of Labor Sta tistics, show s th e p ercen t o f U.S. em ployees in th e service-producing and m anufacturing sectors, by educa tional attainm ent, 1973 and 1986: Long term unemployment:2 1979................................................ 1986................................................ Job loser unemployment:3 1979 ................................................ 1986 ................................................ 4.2 8.7 17.0 (March) 17.1 (February) 29 36 30 (March) 32 (February) U-7 unemployment rate4 1980.................................................... 1986.................................................... 10.1 10.3 57.0-8.7 (March) 58 .9 -11.8 (Febru ary) 1 Approximating U.S. concepts. 2 Unemployed 1 year or longer. 3 For the United States, the reason for unemployment was permanent job loss; for Japan, the reason for unemployment was Involuntary job loss. 4 U-7 measures seekers of full-time jobs, plus one-half the number of seekers of part-time jobs, plus one-half the number of part-time workers who want full time work, plus discouraged workers as a percent of the civilian labor force, adjusted to exclude one-half of the part-time labor force and to Include the discouraged workers. 5 This range for Japan reflects two different groups of discouraged workers. Sources ; S t a tis tic a l S u p p le m e n t to I n te r n a tio n a l C o m p a ris o n s o f U n e m p lo y m e n t, Bulletin 1979 (Bureau of Labor Statistics, June 1988); E m p lo y m e n t a n d E a rn in g s (Bureau of Labor Statistics, January 1980 and 1987); Constance Sorrentino, "Japanese Unemployment: bls updates its analysis,” M o n th ly L a b o r R e v ie w , June 1987, pp. 47-53; and the special annual March or February household survey in Japan. Labor force participation rates among older workers are declining in m ost other industrialized countries as well. The labor force participation rate of women is still ris ing in the U nited States, but it appears to be falling slightly in Japan. (See table 9.) M ore im portantly, the participation rate of women in Japan is m ore cyclical than that of women in the U nited States. This phenom enon is unique to Japan among the industrialized countries. Per haps this gives employers in Japan m ore flexibility in dealing w ith business dow nturns than it gives employers in the U nited States and in other countries. Other factors A lthough there are m any other w ork force characteris tics which affect labor m arket flexibility, only three will be discussed here: educational level, occupational mobil ity, and geographical mobility of the work force. Educational level. Educational attainm ent is a powerful predictor of the ability to adjust to unem ploym ent, espe cially for workers suffering a perm anent job loss. In the U nited States, the educational attain m en t of w orkers (m easured by the num ber of years of school completed) has been increasing. W orkers in the service sector in the U nited States have always been, on average, more highly educated than m anufacturing workers. This is still the case, as the educational level of U.S. workers in both https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Educational attainment Less than high school... High school................... More than high school.. Service-producing sector Manufacturing 1973 1986 1973 1986 26 39 35 14 38 48 38 43 20 21 45 33 Com parable data for Japan are not available. The data that are available yield somewhat conflicting results on how the educational level of Japanese workers compares with th at of U.S. workers. F or example, the percentage of 17-year-olds attending educational institutions in 1984 was slightly higher in Japan than in the U nited States. The percentage of young people obtaining credentials for university entrance in 1984 was m uch higher in Japan (92 percent) than in the U nited States (73 percent).15 In contrast, a W orld Bank study of prim ary, secondary, and higher form al education showed th at twice as many U.S. labor force participants had a higher (post-second ary) education than their Japanese counterparts around the same tim e period.16 M oreover, the m ean years of schooling for U.S. labor force participants was 12.6 years in 1981, com pared with 9.8 years for Japanese labor force participants in 1979.17 It is significant, however, that edu cation and training outside the ordinary education system was not included. This type of training accounts for a substantial part of the hum an capital stock embodied in the labor forces of both countries. In fact, the level of education and training provided in firms is widely re garded as a m ajor determ inant of Jap an ’s impressive postw ar economic perform ance.18 Occupational mobility. Occupational mobility is a diffi cult concept to measure and to assess. In m ost countries, occupations have emerged historically, reflecting particu lar features of industrial development. In this process, relatively few occupations have disappeared entirely, but m ost have changed substantially in term s of the composi tion and level of skills required. In the U nited States, it is estim ated that about 10 per cent of the employed change occupations in a given year. The percentage is highest for youth and declines signifi cantly with age.19 Given the m uch higher labor force participation rates of teenagers in the U nited States than in Japan, and the fact that teenagers are the most mobile group (30 to 40 percent change occupations each year), 37 M O N T H L Y LA B O R R E V IE W February 1989 occupational mobility is probably higher in the U nited States than in Japan. A lthough occupational mobility data for Japan are not available, fairly com parable data on occupational shifts exist. Japan, as well as the U nited States, is experiencing a dram atic shift in occupational distribution o f em ploy ment. (See table 10.) In both countries, rapid grow th is occurring in professional and technical occupations, which generally require a lot of education and training. M anagerial and sales occupations also have increased in both countries over the 1972-86 period, but m ore so in the U nited States. Generally, there was slower grow th in occupations that do not require post-secondary education. A few exceptions were the rapid grow th in both countries in the service occupations, which generally do not require advanced training or education, and a puzzling increase in Japan in the num ber of laborers. Geographic mobility. G eographic mobility is higher in the U nited States than in Japan. F o r example, in 1980, 6.2 percent of the U.S. population moved to another county within the same State; in Japan, the com parable rate was 2.6 percent.20 Several factors may account for this low mobility rate in Japan. The population and industries are very densely con centrated geographically, with supplier industries usually located near m ajor clients. It is not unusual for workers to Table 8. Percent distribution of labor force status by gender, United States and Japan, 1986 Total, 16 C h aracteristic P ercent distribution years1 and over Total M en2 Population: United States..................... 180,587 Japan................................. 95,870 100.0 100.0 43.5 43.6 48.5 46.6 8.0 9.7 Labor force: United States..................... 117,834 Japan ................................. 60,200 100.0 100.0 52.0 58.8 41.2 38.5 6.7 2.7 Employment: United States..................... 109,597 Japan ................................. 58,530 100.0 100.0 52.5 58.9 41.6 38.5 5.9 2.6 Unemployment: United States..................... Japan ................................. 8,237 1,670 100.0 100.0 45.5 55.1 36.8 37.7 17.6 7.2 Labor force participation rate: United States..................... Japan ................................. 65.3 62.8 — 78.1 84.6 55.5 51.8 54.7 17.6 Employment-population ratio: United States..................... Japan ................................. 60.7 61.1 — — 73.3 82.4 52.0 50.4 44.6 16.3 Unemployment rate: United States..................... Japan ................................. 7.0 2.8 — 6.1 2.6 6.2 2.7 18.3 7.3 — — W om en2 T eenagers1 1 Includes, for Japan, 15-year-olds. Population, labor force, employment, and unemployment numbers are in millions. 2 20 years and older. Note : U.S. data are for the civilian labor force; Japanese data include the National Defense Force. Source : U.S. data are from the Bureau of Labor Statistics. Data for Japan are from the Japan Statistics Bureau Management and Coordination Agency, 1986. A n n u a l R e p o r t o n th e L a b o u r F o r c e S u rv e y , Digitized for38 FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Labor M arket Adjustments in U.S. and Japan move from their primary industry to a supplier industry. There is also a high degree of internal (intrafirm) mobility. As a result, job turnover is lower and job tenure is higher in Japan, compared with the United States. Fewer than onethird of employees in Japan, primarily in large manufac turing firms, are covered by implicit lifetime employment agreements with their firms.21 Though no formal commit ments are made by either the employer or employee, it is understood that employment will be stable with few or no periods of layoff. Speed of adjustment A variety of evidence suggests th at the speed with which firms adjust labor input (num ber of workers times the average num ber of hours worked) to fluctuations in p ro d u ctio n does not differ significantly betw een the U nited States and Japan. W hen production slows, U.S. firm s tend to reduce the num ber of employees m ore quickly than do Japanese firms; Japanese firms rely more on reducing hours. A 1980 study by H aruo Shimata, professor of econom ics at Keio University, examines trends in m anufacturing production, em ployment, and labor input from November 1973 to D ecem ber 1975 (a recessionary period) for Japan, the U nited States, the U nited K ingdom , West G erm any, and France.22 A substantial drop in production occurred in each country following an increase in energy and other raw m aterial prices at the beginning of this period. The depth of em ploym ent adjustm ent relative to the size of the production drop in Japan was com parable to th at in E u rope, but was m uch less severe than in the U nited States. In contrast, labor input (as m easured by the ratio of per centage changes in labor input and production) ad just m ent was greater in the U nited States than in Japan and Europe. Shim ata presents econom etric estimates of adjustm ent speeds for em ploym ent and labor input on a com parable basis for Japan, the U nited States, and the U nited K ing dom ."3 The U nited States adjusted em ploym ent levels m ore quickly than did either Japan or the U nited K ing dom; whereas the speed with which Japanese firms ad justed labor input was similar to the U nited States and som ewhat faster than in the U nited Kingdom. A more detailed 1985 study by Shim ata and others analyzes trends in em ploym ent and production for seven m anufacturing industries in the U nited States and Japan, using data over a longer period that included two com plete business cycles (1968-79).24 Tim ing and depth of em ploym ent and production changes in U.S. m anufactur ing industries were very similar. In contrast, there was a m arked absence of employm ent fluctuations in Japanese m anufacturing industries. The study also presents econom etric estimates of em ploym ent adjustm ent speeds for 14 U.S. and Japanese m anufacturing industries. It found that employm ent gen- Table 9. Civilian labor force participation rates by gender, 1960-87 W om en Men Total Year United States Japan United States Japan United States Japan I960 1961 1962 1963 1964 ................................................. .................................................. .................................................. .............................................. .................................................. 59.4 59.3 58.8 58.7 58.7 67.9 67.8 66.9 65.7 64.8 83.3 82.9 82.0 81.4 81.0 84.2 84.3 83.6 82.5 81.5 37.7 38.1 37.9 38.3 38.7 52.7 52.4 51.3 50.0 49.3 1965 1966 1967 1968 1969 .................................................. .................................................. .................................................. .................................................. .................................................. 58.9 59.2 59.6 59.6 60.1 64.4 64.6 64.8 64.9 64.6 80.7 80.4 80.4 80.1 79.8 81.1 81.1 81.0 81.7 81.5 39.3 40.3 41.1 41.6 42.7 48.8 49.2 49.6 49.2 48.8 1970 1971 1972 1973 1974 ................................................. .................................................. .................................................. .................................................. .................................................. 60.4 60.2 60.4 60.8 61.2 64.5 64.2 63.8 64.0 63.0 79.7 79.1 78.7 81.5 81.9 81.9 81.9 81.6 43.3 43.4 43.9 44.7 45.7 48.7 47.7 46.8 47.3 45.7 1975 1976 1977 1978 1979 .................................................. .................................................. .................................................. .................................................. .................................................. 61.2 61.6 62.3 63.2 63.7 62.4 62.4 62.5 62.8 62.7 77.9 77.5 77.7 77.9 77.8 81.2 81.0 80.4 80.1 79.9 46.3 47.3 48.4 50.0 50.9 44.8 44.9 45.7 46.4 46.6 1980 1981 1982 1983 1984 .................................................. .................................................. .................................................. .................................................. .................................................. 63.8 63.9 64.0 64.0 64.4 62.6 62.6 62.7 63.1 62.7 77.4 77.0 76.6 76.4 76.4 79.6 79.6 79.3 79.2 78.5 51.5 52.1 52.6 52.9 53.6 46.6 46.7 47.0 48.0 47.8 1985 .................................................. 1986 .................................................. 1987 .................................................. 64.8 65.3 65.6 62.3 62.1 61.9 76.3 76.3 76.2 77.9 77.6 77.1 54.5 55.3 56.0 47.6 47.6 47.6 7 9 .0 7 8 .8 Note : Data relate to the total labor force approximating U.S. concepts as a percent of the total noninstitutionalized working age population. Working age is defined as 16-year-olds and older In the United States; 15-year-olds and older in Japan. The institutionalized working age population is included in Japan. Source : S t a tis tic a l S u p p le m e n t to I n te r n a tio n a l C o m p a ris o n s o f U n e m p lo y m e n t , erally adjusts m ore quickly in U.S. m anufacturing indus tries and th at differences between the U nited States and Japan are sm aller when the volume of em ployment is m easured in term s of labor input.25 Adjustment mechanisms Aside from the overall speed of adjustm ent, U.S. and Japanese firms have traditionally used different methods to cut labor costs in response to decreased dem and.26 In the United States, firms are quick to lay off workers and shut down inefficient plants. Reliance on private financial capi tal m arkets leads firms to reallocate productive capital to more productive plants in the United States or to locations outside the country. W orkers at the older plants may be displaced and new w orkers (possibly elsewhere in the United States or overseas) take their places. There has been little sharing of information or communication between management and labor prior to layoffs and plant shut downs.27 Collective bargaining agreements between m an agement and unions specify, in detail, the seniority-based rules for layoffs. However, only about a fourth of all U.S. workers are covered by a collective bargaining agreement. In Japan, there is extensive reallocation of so-called regular workers (mainly those covered by lifetime em ploym ent) to different operations w ithin the firm , to subsidiaries, or even to a different firm. Overtime hours https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bulletin 1979 (Bureau of Labor Statistics, June 1988). are reduced; wages and sem iannual bonuses are cut. W orkers on the shop floor are regularly consulted and informed regarding the plan for employment reduction; detailed em ploym ent adjustm ent plans usually are form u lated after the need for adjustm ent becomes clear. Layoffs are rarely used. W hile these features are typical for large Japanese firms in export-oriented industries, it is im por tant to note that employm ent adjustm ent often proceeds less sm oothly in small and medium Japanese firms. Also in Japan, extensive training is given to newly hired regular workers on all aspects of the com pany’s organiza tion, p ro d u c t lines, p ro d u c tio n technology, and the competition. W orkers are rotated every 2 or 3 years to gain a variety of skills. Base pay is low, rises more steeply than in the U nited States, and peaks at about age 45. Raises are based mostly on seniority and tenure, rather than on the specific job performed. All nonm anagerial regular workers in a com pany are represented by the com pany union. M anagem ent is usually p ro m o ted from within the company; first-line shop m anagers are key points of contact, prom oting good com m unication be tween m anagem ent and shop-floor workers. Given the Japanese firm ’s substantial investm ent in the w orker and the flexibility of labor within the firm, it makes sense to move workers internally rather than resort to layoffs. 39 M O N T H L Y LA B O R R E V IE W February 1989 • In large U.S. m anufacturing companies, the firm usu ally provides little training unrelated to the specific job for which workers are employed. Pay is closely attached to job classification. Prom otion is usually achieved by changing jobs rath er than on acquisition of a broad range of skills, with tenure either at the com pany or at a p articu lar job being the basis for selection. Wage and com pen sation levels are usually set out in long-term contracts. There is very little com m unication and inform ation shar ing between m anagem ent and unions. These features of U.S. internal labor m arkets m ake reallocation of labor within the firm costly and difficult. Given this, it is clear why U.S. companies reduce labor costs by readily using layoffs rath er than by intra-firm or inter-firm transfers. Adjustment policies The U.S. and Japanese Governments use a variety of employment adjustm ent policies to assist displaced work ers. M ost U.S. workers, when unemployed, are also entitled to income m aintenance under Federal-State unem ploy ment insurance, which may be augmented by employerfinanced supplemental unemployment benefits. The United States has two prim ary employment adjustm ent programs to provide job search aid to displaced workers: Trade A d justm ent Assistance, and the Economic Dislocation and W orker A djustm ent Assistance Act of 1988, which incor porated and substantially amended Title III of the Job Training Partnership Act. Japan has several different em ploym ent ad justm ent program s th at fall essentially into two groups: em ploy m ent stabilization measures and vocational training. In addition, the Japanese G overnm ent has recently insti tuted a program which provides loans to firms adversely affected by the yen appreciation. This type of program indirectly assists in the em ploym ent adjustm ents for bene ficiary firm s.28 Jobless workers in the U nited States can receive weekly paym ents of 35 to 40 percent of previous wages for 26 to 39 weeks and job-search assistance through the State E m ploym ent Service. W orkers m ust actively search for work to receive benefits. U.S. Trade Adjustment Assistance. This program , ex panded in the Trade Act of 1974, provides assistance to workers displaced as a result of increases in imports. Such workers are eligible to receive enhanced unemployment compensation and assistance in retraining, job search, and relocation. Expenditures of the program increased dram ati cally between 1979 and 1980, reaching more than $2 billion, because many laid-off automobile workers were eligible for, and collected, trade adjustm ent assistance. Amendments in 1981 to the Trade Act reduced the weekly monetary bene fits a displaced worker could receive by switching benefits from a national to individual State level. As a result of these and other changes to the trade adjustm ent assistance pro Digitized for40 FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Labor M arket Adjustments in U.S. and Japan gram, it is no longer a m ajor source of aid to tradedisplaced workers. It now functions mainly as an extended unemployment insurance program. That is, trade adjust ment assistance extends the eligibility period for receiving unemployment insurance benefits from 26-39 weeks to 52 weeks for workers displaced as a result of increased im ports. However, coverage under the program has recently been extended to include workers in industries that provide essential goods or services to a trade-affected industry and to workers in firms that engage in exploration or drilling for oil or natural gas. Economic Dislocation and Worker Adjustment Assistance Act o f 1988. This new $980 million program is now the m ajor U.S. Federal employment adjustm ent program. The act replaces and expands the Job training Partnership Act, Title III program. It still provides block grants of funds to States, which in turn decide the type and am ount of em ployment and training assistance to be provided to dis located workers, regardless of the cause of displacement. The act improves on the past, fragm ented approach to worker readjustm ent by: establishing closer links with the unem ploym ent insurance system and T rade A djustm ent Assistance, responding earlier and m ore quickly to w ork ers’ needs once they are laid off, improving the targeting of funds to areas of greatest need, emphasizing training and reem ploym ent rather than income support, and faciliTable 10. Employment change by occupation, United States and Japan, 1972-86 Occupation P ercent change, 1 9 7 2 -8 6 U n ite d S ta te s Total employment.......................................... Executive, administrative, and managerial w orkers........... Professional workers............................................. Technicians and related support workers.......................... Salesworkers............................................ Administrative support workers, including clerical.............. 33.4 73.7 57.5 74.5 54.6 35.2 Private household workers.................................. Service workers, except private household workers.......... Precision production, craft, and repair workers................... Operators, fabricators, and laborers................................... Farming, forestry, and fishing workers............................... -31.9 45.9 29.6 -1.3 -10.4 Japan Total employment.......................................... Professional and technical workers ........................ Salesworkers........................................... Managers and officials..................................... Clerical and related workers............................ Service workers............................................ Craftsmen and production process workers.................. Workers in transport and communications......................... Laborers............................................ Farmers, lumbermen, and fishermen.......................... 14.2 64.4 29 5 21.0 31.8 24.8 6.9 -3.3 49 4 -34.6 Source : 1972-86 rates of change in the United States were derived from Current Population Survey data. See Ronald E. Kutscher and Constance E Sorrentino, "Employment and Unemployment Patterns in the U.S. and Europe, 1973-87," J o u r n a l o f L a b o r R e s e a rc h (George Mason University, Department of Economics, forthcoming). For Japan, data are from Statistics Bureau, Prime Minister's Office, A n n u a l R e p o r t o n th e L a b o u r F o rc e S u rv e y , 1979 and 1986. Occupational definitions for the two countries are not directly comparable. tating labor-m anagem ent and governm ent-com m unity cooperation in responding to plant closings and layoffs. Japan's transfer and retraining programs. In Japan, em ployment measures are aimed at preventing unemployment. The government does provide unemployment benefits in the event of job loss (60 to 80 percent of previous wages for 90 to 300 days, depending upon age and tenure). As mentioned earlier, under Japanese employment practices, it is very difficult for people once displaced to be re-employed. Em ployment adjustments are mainly done internally through intra- and inter-company transfers or retraining programs, often with government financial assistance. Japanese firms often pay wage subsidies to workers who are moved to other companies for a limited period of time. It is important to note that these comments apply primarily to regular work ers. Nonregular employees are usually the first to be let go during an economic downturn, often leaving the labor force entirely. In sharp contrast to U.S. practice, the government of Japan provides wage and training cost subsidies directly to employers. G overnm ent assistance is given under the 1983 Special M easures Law for Em ploym ent Security for W orkers in Specified Depressed Industries and Areas to those employers forced to reduce the scale of their busi ness activities, who tem porarily shift workers to other enterprises, prom ptly recruit those leaving from stru ctu r ally depressed industries, or offer training to workers who are obliged to leave their jobs entirely. These measures are largely financed through em ployers’ contributions to the Em ploym ent Insurance Scheme; the G overnm ent does not provide large am ounts of financial aid. Fast adjustments although methods differ The role of m anufacturing in total o utput has not declined in either the U nited States or Japan. Thus, m an ufacturing continues to play a prom inent role in both economies, with the com petitive position of the U.S. m an ufacturing industry recently improving relative to Japan. In both countries, however, m anufacturing employment has declined recently and the industry share of total em ployment has continued to fall. The ability of labor m arkets to respond to structural change depends upon many factors such as the character istics of the work force and available adjustm ent m ech anisms and policies. W hen we examined labor m arket flexibility by com paring labor force characteristics, we found that on one hand, a larger proportion of U.S. than of Japanese workers are young and m ore likely to change occupations and geographic areas than older workers. On the other hand, Japanese women are more likely than U.S. women to exit the labor force in economic downturns. Overall, the U.S. labor m arket adjusts as quickly as the Japanese labor m arket. N ot surprisingly, employment ad ju stm en t m echanism s in the two countries are quite different. In Japan, layoffs are rare. W orkers’ broad-based training provided by their employers allows them more access to different jobs in other parts of the same com pany or to a differen t com pany a lto g e th e r w ith o u t entering the unem ploym ent pool. Overtime hours, wages, and bonuses are cut. In the U nited States, employers rely on layoffs to reduce labor costs. Correspondingly, U.S. and Japanese employment ad justm ent policies are tailored to their respective labor markets. In the U nited States, unem ploym ent compensa tion is available to job losers, which provides income support while awaiting recall or searching for a new job. Training, job search, and relocation assistance is provided to workers whose job loss appears to be perm anent and 60 days notice is provided in the case of plant closings and mass layoffs. In Japan, a variety of program s have been designed to prevent workers from ever becoming unemployed. G ov ernm ent subsidies are paid directly to firms to finance both wages and vocational training of underem ployed workers. □ ■FOOTNOTES Acknowledgment: The authors are grateful to Constance Sorrentino o f the Division o f Foreign Labor Statistics and Trade, Bureau o f Labor Statistics, for her comm ents, suggestions, and invaluable assistance with the data. 'Ronald E. Kutscher and Valarie A. Personick, “ Deindustrialization and the shift to services,” Monthly Labor Review, June 1986, pp. 3-13. 2U .S. Department of Commerce, Bureau of Economic Analysis database; Japan Economic Planning Agency, Annual Report on National Accounts, 1987. 3U .S. Congress, Office o f Technology Assessm ent, Manufacturing and America’s Trade Deficit, U .S. Governm ent Printing Office, June 1988). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Paying the Bill: ota- ite-3 9 0 (W ashington, 4Arthur Neef and James Thomas, “ Trends in manufacturing productivity and labor costs in the U .S. and abroad,” Monthly Labor Review, Decem ber 1987, pp. 25-30. 5These data and the figures in table 1 are a count of workers in the manufacturing industry derived from the Current Population Survey, a national sample o f households. Data from the Current Employm ent Sta tistics program , a national survey o f business establishments, provide a count o f the num ber o f jobs in the m anufacturing industry. In 1987, there were 19.1 million m anufacturing jobs. The larger num ber in the cps is due in large part to the contrasting ways o f counting w orkers on unpaid absences. M anufacturing has a relatively large num ber of unpaid absences and they are counted as employed only in the cps, not in the establishm ent survey. See Christopher G. Gellner, “ A 25-year look at em ploym ent,” Monthly Labor Review, July 1973, pp. 14-23. Figures in table 6 are based on the establishm ent survey. 41 M O N T H L Y LA BO R REV IEW February 1989 Labor Market Adjustments in U.S. and Japan • 'E lizab eth G ibbons and G erald F. H alpin, “ Im port price declines in 1986 reflected reduced oil prices,” Monthly Labor Review, A pril 1987, pp. 3 -1 7 . '’Economic Report of the President (W ashington, U.S, G overnm ent P rinting Office, 1988). l6George P sacharopoulos and A na M aria A rriagada, "T he educa tional com position of the labour force: an international com parison," International Labour Review, S e p tem b er-O cto b er 1986, pp, 5 6 -7 4 . 17Ibid. 1% Ibid. “G ibbons and Halpin, chart 2, p. 5. 'R obert Blanchfield and W illiam M arsteller, "R ising export and im port prices in 1987 reversed the trend of recent years," Monthly Labor Review, June 1988, pp. 3 -1 9 , ]0Ibid., 20Ibid. "W ein er, "W hy is Jap an 's U nem ploym ent R ate So Low?" p. 16. pp. 5 - 6 . "C o n stan ce Sorrentino, "Jap a n ’s low unem ploym ent: an in-depth analysis," Monthly Labor Review, M arch 1984, pp. 18 -2 7 ; and C on stance Sorrentino, “Japanese unem ploym ent: bls updates its analysis," Monthly Labor Review, June 1987, pp. 4 7 -5 3 . "O rg an izatio n for Econom ic C ooperation and D evelopm ent (oecd ), Panel One, Phase II, "M easures to Assist W orkers D isplaced by Struc tural C hange" (Paris, o ecd , M arch 1988). Stuart E. W einer, "W hy is Ja p a n ’s U nem ploym ent R ate So Low and So Stable?" Economic Review (Federal Reserve Bank of K ansas City), A pril 1987, pp. 3 -1 8 . "O rg an izatio n for Econom ic C ooperation and D evelopm ent (oecd ), “T he Social Policy Im plications o f Aging P opulations” (Paris, o ecd , forthcom ing), table 12. 1 O rganization for Econom ic C ooperation and D evelopm ent (oecd ), oec d , 1987), table 1.1. Structural Adjustment and Economic Performance (Paris, 42FRASER Digitized for https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1'O rganization for Econom ic C ooperation and D evelopm ent (oecd ), o ecd , 1986), table I I - 9 . Flexibility in the Labor Force (Paris, " H a r u o Shim ada, "T he Japanese Em ploym ent System ," Japanese Industrial Relations Series, Series 6 (Tokyo, Japan Institute of Labour, 1980). 23Ibid. " J a m e s A. O rr, H aruo Shim ada, and A tsushi Seike, United StatesJapan Comparative Study of Employment Adjustment, R eport to the U.S. D epartm ent of L abor and Japan M inistry of Labor, M arch 1985. 25Ibid. " T h is section draw s heavily on O rr, Shim ada, and Seike, " T h is m ay change in the future with the recent passage of the W orker A d justm ent and R etraining N otification A ct o f 1988, which requires firm s th at em ploy 100 or m ore w orkers to give w orkers 60 days notice that the plant m ay close or th at a mass layoff will occur. "“O rganization for Econom ic C ooperation and D evelopm ent (oecd ), "Measures to Assist Workers. ” The importance of basic academic skills W hy are basic skills im portant? Because those w ith b etter basic skills— defined as the ability to read, write, communicate, and com p u te— do better in school, at work, and in other key areas of their lives. They are more likely to perform well in school, obtain a high school diploma, go on to and complete college, work more hours, earn higher wages, be m ore productive workers, and avoid bearing children out of wedlock. Conversely, those who are deficient in basic skills are more likely to be school dropouts, teenage parents, jobless, welfare dependent, and involved in crime. M oreover, in an interdependent world economy, the skills of the N atio n ’s w ork force are becoming an increasingly im portant determ inant of A m erican industry’s com petitive position, w orkers’ real wages, and our overall standard of living. In short, basic skills bear a distinct relation to the future well-being of workers, families, firms, and the country itself. — G United States-Japan Comparative Study. o rd o n B e r l in a n d A n d rew Su m Toward A More Perfect Union: Basic Skills, Poor Families, and Our Economic Future (N e w Y o rk , F o r d F o u n d a tio n , 1988), p p . 1 - 2 . Productivity in the carburetors, pistons, and valves industry Growth in output per employee hour in the carburetors, pistons, and valves industry has been substantially below that for all manufacturing; the industry has felt the effects o f weak demand Jo h n W. F e r r i s and V ir g in ia L. K l a r q u i s t Productivity in the carburetors, pistons, and valves indus try, as m easured by output per employee hour, declined slightly at an average annual rate of 0.4 percent from 1972 to 1986.1 This was below the rate for all m anufacturing, which grew at a rate of 2.4 percent per year during the same period. The decline in productivity reflected a small decrease in output of 0.1 percent per year and a rise in employee hours of 0.3 percent per year. Adversely affect ing the industry were cyclical dow nturns in the economy, which resulted in sizable drops in production in several years and corresponding declines in productivity. The productivity trends in the industry can be divided into two distinct periods. F rom 1972 to 1980, productivity declined at an average annual rate of 3.1 percent. O utput fell 1.3 percent per year, while hours rose 1.9 percent per year. In the two recessions which occurred during this period, output dropped sharply. In the recession year of 1974, output fell 14.3 percent and hours decreased 4.7 percent. This resulted in a productivity falloff of 10.0 percent. In the recession year of 1980, a 17.1-percent de crease in output and a 13.2-percent decline in hours led to a 4.5-percent drop in industry productivity. From 1980 to 1986, productivity rebounded, increasing at a rate of 4.5 percent per year. This was a result of out put’s having risen at an average annual rate of 4.2 percent while hours changed little, falling 0.3 percent per year. Pro ductivity advanced in each year from 1980 to 1985; how ever, in 1986 output per hour declined.2 Industry description The carburetors, pistons, and valves industry includes establishments engaged prim arily in the m anufacture of all types of carburetors, pistons and piston rings, and valves for aircraft, m otor vehicles, and engines. The breakdown of industry production in 1972 was 46 percent carburetors, 29 percent pistons and piston rings, and 25 percent valves. By 1986, the distribution had changed to 61 percent carburetors, 28 percent pistons and piston rings, and 11 percent valves. M ichigan, New York, K en tucky, and Indiana are the leading States in employment in the industry, accounting for about 50 percent of the industry’s employm ent in 1982 (the year of the most re cent Census of M anufactures). Establishm ents in the industry are large: The eight larg est of the industry’s 171 establishments accounted for m ore than one-half of the value of the industry’s ship ments in 1982. The average num ber of employees per establishm ent in 1982 was 182, com pared to an average of 53 employees for all m anufacturing. Output and demand Jo h n W. F erris and Virginia L. K larquist are econom ists in the Division o f In d u stry P roductivity and T echnology Studies, B ureau o f L abor Statistics. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The change in industry output over the entire period from 1972 to 1986 was negligible. However, annual output movements have varied significantly in certain years. (See 43 M O N T H L Y LA B O R R E V IE W February 1989 • table 1.) In 1973, the industry recorded its largest increase in output, 30.2 percent. The largest decrease— 17.4 per c e n t- o c c u rr e d in 1975. Approxim ately three-fourths of the industry’s output is purchased by m otor vehicle m anu facturers. Hence, the level of production in the m otor vehicle industry is the prim ary determ inant of industry output.3 From 1972 to 1980, output declined at an average an nual rate o f 1.3 percent, a reflection of a decline in output in the m otor vehicle industry.4 D uring this period the num ber of cars, trucks, and buses produced fell by 1.4 percent per year. The shift in autom obile production in the U nited States from large cars to small and medium cars also adversely affected the industry. In 1972, the distribution of autom obile production was 9 percent four cylinders, 11 percent six cylinders, and 80 percent eight cylinders. By 1980, the distribution had changed to 31 percent four cylinders, 37 percent six cylinders, and 32 percent eight cylinders. By contrast, from 1980 to 1986, industry output grew at an average annual rate of 4.2 percent. This was prim ar ily due to an 8.4-percent annual grow th rate in m otor vehicle production. However, other factors tem pered the recovery of the carburetors, pistons, and valves industry. One of these was the continuing shift tow ard sm all-car production. By 1986, m ore than half of all automobiles produced in the U nited States had four-cylinder engines. Correlatively, the proportions of cars with six- and eightcylinder engines both declined from 1980 levels, to 29 and 20 percent, respectively. Also tem pering the grow th rate of industry output was the increasing num ber of installa tions o f electronic fuel injection system s in place of Table 1. Productivity and related indexes for the carburetors, pistons, and valves industry, 1972-86 O utput per em ployee hour Y ear All Production em ployees workers Nonpro Employee hours Output duction workers All Production em ployees workers Nonpro duction workers 1972 1973 1974 1975 ..... ..... ..... ..... 113.6 120.4 108.3 100.1 113.8 119.3 108.8 102.8 112.9 124.9 106.3 89.3 94.3 122.8 105.3 87.0 83.0 102.0 97.2 86.9 82.9 102.9 96.8 84.6 83.5 98.3 99.1 97.4 1976 1977 1978 1979 1980 ..... ..... ..... ..... ..... 107.3 100.0 94.6 94.6 90.3 108.4 100.0 95.1 94.2 93.3 102.0 100.0 92.5 96.4 78.7 102.9 100.0 96.5 105.7 87.6 95.9 100.0 102.0 111.7 97.0 94.9 100.0 101.5 112.2 93.9 100.9 100.0 104.3 109.6 111.3 1981 1982 1983 1984 1985 ..... ..... ..... ..... ..... 91.7 92.0 99.6 110.3 114.0 93.1 97.4 102.9 111.5 116.8 85.6 73.7 86.3 105.2 102.8 90.1 85.3 91.6 115.3 110.8 98.3 92.7 92.0 104.5 97.2 96.8 87.6 89.0 103.4 94.9 105.2 115.7 106.1 109.6 107.8 1986 ..... 111.1 114.9 96.3 101.3 91.2 88.2 105.2 A verage annual rates of change (in percent) 1972-86 1972-80 1980-86 -0.4 -3.1 4.5 -0.1 -3.0 4.4 Digitized for44 FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -1.4 -3.9 4.9 -0.1 -1.3 4.2 0.3 1.9 -0.3 0.0 1.7 -0.2 1.3 2.7 -0.6 Productivity in Carburetors, Pistons, and Valves conventional carburetor systems in new cars. Before 1980, electronic fuel injection systems were virtually nonexist ent in A m erican-m ade autom obiles. By 1986, nearly tw o-thirds of the automobiles produced in the United States were equipped with such systems. Employment and hours Industry employm ent grew at an average annual rate of 0.2 percent from 1972 to 1986. Em ploym ent increased from 26,700 in 1972 to a high of 36,200 in 1979 and fell to 28,800 in 1986. Total employee hours grew at a slightly faster pace of 0.3 percent per year. The num ber of pro duction w orkers rose slightly from 21,600 in 1972 to 22,300 in 1986. N onproduction worker employm ent grew at a faster rate of 1.4 percent per year as the num ber of nonproduction workers increased from 5,100 in 1972 to 6,500 in 1986. The proportion of production workers to total employm ent fell from 80.9 percent in 1972 to 77.4 percent in 1986. Average hourly earnings of production workers were sig nificantly higher in the industry than in all manufacturing industries. In 1972, industry average hourly earnings were $4.65, compared with $3.82 in all manufacturing indus tries. By 1986 the gap had widened, and industry average hourly earnings were $12.66 compared with $9.73 in all manufacturing. Capital spending M easured in constant dollars,5 industry capital expend itures increased at an average annual rate of 6.6 percent from 1972 to 1986, as capital spending per employee was brought up to the level for all m anufacturing industries. Strained production capacity, which peaked in the late 1970’s, was the main reason for the high levels of capital spending. D uring the same years, capital expenditures by all m anufacturing industries rose 2.5 percent per year. From 1972 to 1980, investments in plant and equip m ent by companies in the industry rose 10.6 percent per year while all m anufacturing industries increased their capital expenditures 5.2 percent per year. A t the begin ning of this period, the level of capital spending per employee in the industry was about one-half the level of all m anufacturing industries. By the late 1970’s, the in dustry was investing in plant and equipm ent at a level com parable to that of all m anufacturing. Following this period of high capital spending, industry productivity benefited from 1980 to 1986, growing 4.5 per cent annually. The lag between capital expenditures and productivity is due in part to the lapse of time that occurs before the new facilities made possible by the capital ex penditures, which incorporate technological advances, become fully operational. B etw een 1980 and 1986, c a p ital spending slow ed slightly throughout the m anufacturing segment of the economy, declining by 0.1 percent per year. In contrast, investm ent in plant and equipm ent in the carburetors, pistons, and valves industry increased 9.3 percent per year. M uch of the capital spending by the industry was on the conversion to the production of electronic fuel injec tion systems.6 Technology A lthough productivity has been dam pened by decreas ing d em and, th e in d u stry has in tro d u c e d som e new technology into its production processes. Changes in tech nology have centered on im provem ents in metalworking m achinery, as well as autom atic m ovem ent and position ing of work. In carburetor manufacturing, new technology has cen tered on improvements in assembly line production.7 In the earliest years of the study period, loading and transferring the workpiece were manual operations. Soon, establish ments increasingly installed automatic transfer lines. As a result, many metalworking operations (for example, mill ing, grinding, drilling, and reaming) became automated. In the newer system, workers perform the initial tool setup, m onitor performance, and provide maintenance. Testing and inspection may or may not be automated. For the in stallation and continued use of such m achinery to be economical, the volume of production must be very high. In recent years the volume of production of carburetors has declined sharply, as more new cars are equipped with electronic fuel injection systems. M ajor m anufacturers who once produced thousands of carburetors daily now produce only hundreds daily. The reduced volume of production has resulted in a shift away from the newer assembly line pro duction technique toward cell manufacturing and job-order production. In cell manufacturing, the workpiece is assem bled at one location, and jigs and fixtures are provided as operator aids. Convenient parts bins and state-of-the-art tools are also provided to minimize labor and increase pro duction. D irect labor requirem ents are higher in cell manufacturing than in assembly line production. In piston manufacturing, new technology has centered on improvements in metalworking and transfer machines. T ra ditionally, pistons were manufactured on a succession of lathes and grinders, requiring much manpower to transport and position the work in process. Some establishments in the industry have now installed automatic-dial transfer ma chines.8 These machines perform all the operations of the lathes and grinders at a faster rate than the machines they replaced. The machine cycle consists of two trips around the seven-station dial with the pistons automatically posi tioned. Two pistons are always in place at each work station— one in a vertical position for the first series of machine operations and one in a horizontal position for the second series. A t the first station an operator loads a casting that is indexed for the second station into the load-assist, which places the casting in a three-jaw compensating lathe. A t the second station, a horizontal feed unit with a boring https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis spindle drills the wrist-pin hole and counterbores, faces, and chamfers (grooves) the piston skirt. A t the third sta tion, the near and far sides of the w rist-pin hole are recessed to hold a snap ring. The wrist-pin hole is bored further at the fourth station, and polishing takes place at the fifth station. A t the sixth station a tool peens the surface of the piston, hardening the bore to the desired depth. A t the final station in its first trip around the seven-station dial, the wrist-pin bore is gaged. The part is then autom atically unloaded from the vertical position and reloaded in the horizontal position. The second cycle begins at station 2, where the outside diam eter of the piston is rough-turned. A t the third sta tion, the piston dom e is rough-cut and finish-cut. A horizontal positioning unit with a grooving spindle then cuts the ring groove at the fourth station. A t the fifth station, the outside diam eter is finish-turned to the de sired roundness tolerance. A t the sixth station, the outside diam eter is gaged. Finally, at the seventh station, the dial indexes the piston to its original position and autom ati cally unloads it into a chute. Pistons produced on the autom atic-dial transfer machine are of consistently higher quality than those produced on a succession of lathes and grinders. Also, labor requirem ents are significantly lower due to the reduced m aterial handling and reworking of pistons. Outlook The carburetor segment of the carburetors, pistons, and valves industry is expected to decline sharply. In 1987, the proportion of new A m erican-m ade cars with electronic fuel injection systems rose to 77 percent. Industry sources predict th at carburetors will cease to exist as original equipm ent on new A m erican cars by 1991. However, m anufacturers will continue to produce carburetors for replacem ents in older cars and for nonautom otive use. The low level of dem and will probably be responsible for the failure to adopt, on a widespread basis, new technolo gies such as autom atic transfer lines. The outlook for the remaining segments of the industry appears better. Diffusion of the more efficient metalworking and transfer machinery is far from complete. In addition, establishments in the industry may adopt computer-inte grated manufacturing, a system in which engineers use computers to design products. Computers can also guide workpieces among machines and direct machine tools. The m ajor reason for the lack of diffusion of the newer technologies throughout the industry is weak and volatile dem and. C ontributing to the weakness in dem and is strong foreign competition. F or example, in 1972 im ports of piston rings were virtually nonexistent. Today, one in du stry source estim ates th a t im ports account for 20 percent of the piston ring m arket. The volatility in de m and is a byproduct of the cyclical patterns in m otor vehicle production. □ 45 M O N T H L Y LA BO R R E V IE W February 1989 • Productivity in Carburetors, Pistons, and Valves ---------- FOOTNOTES---------‘The carburetors, pistons, and valves industry is designated by the Office o f M anagem ent and B udget as s ic 3592 in the Standard Industrial Classification Manual, 1987. T his industry com prises establishm ents en gaged prim arily in the m anufacture o f carburetors, pistons, piston rings, and engine intake and exhaust valves. A verage annual rates m entioned in the text and tables are based on the linear least squares tren d o f the logarithm s of the index num bers. The indexes for p roductivity and related variables are updated annually and published in Productivity Measures for Selected Industries and Govern ment Services, Bulletin 2296 (B ureau o f L abor Statistics, N ovem ber 1987). “By definition, the least squares rate of change is the rate resulting from the best fit o f the trend line. T he overall rate is not necessarily the average o f the year-to-year rates o f change. In this case, the overall rate o f change is not an average o f the tw o subperiod rates of change. 3Census of Manufactures (\J.S. D epartm ent o f Com m erce, 1972, 1977, 1982), table 6a. APPENDIX: 5C apital expenditures were deflated by the im plicit price deflator for p roducers’ durable equipm ent; see The Economic Report to the President, transm itted to the C ongress Jan u ary 1988, table B3. i n d u s t r y sources. It should be noted th at production of electronic fuel injection system s is done prim arily in the m otor vehicle p arts and accessories industry (s ic 3714). Conversion to electronic fuel injection system s will lead to a reduction in the size of the carburetors, pistons, and valves industry as presently defined in the Standard Industrial Clas sification Manual. 1Ibid. ^ ‘T ransfer M achine for M ini P istons,” American Machinist, M arch 1981, pp. 11 2 -1 4 ; and “ M achine o f the M onth: H ardinge P iston T u rn ing M achine,” Manufacturing Engineering, M arch 1979, p. 43. Measurement techniques and limitations Indexes of output per employee hour m easure changes in the relation between the output of an industry and employee hours expended on th at output. A n 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 of m anufacturing industries would be obtained from data on quantities o f the various goods produced by the industry, each weighted (m ulti plied) by the employee hours required to produce one unit of each good in some specified base period. Thus, those goods which require m ore labor for production are given more im portance in the index. In the absence of adequate data on quantities produced, the output index for the carburetors, pistons, and valves industry was constructed by a deflated-value technique. The values of shipm ents of the various product classes were adjusted for price changes by appropriate producer price indexes and industry sector price indexes to derive real output measures. These, in turn, were combined with employee hour weights to derive the overall output m eas ure. The result is a final output index th at is conceptually close to the preferred output measure. Digitized for46 FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4A11 m otor vehicle data in this article com e from Facts and Figures ’86 (M otor Vehicles M anufacturers A ssociation o f the U nited States, Inc., 1987); or Ward’s Automotive Yearbook (W ard ’s C om m unications, Inc., 1987). The annual output index series was then adjusted (by linear interpolation) to the index levels of the “bench m ark ” output series. This benchm ark series incorporates m ore comprehensive, but less frequently collected, eco nomic census data. The indexes of output per employee hour relate total output to one in p u t— labor. The indexes do not measure the specific contribution of labor, capital, or any other single factor. R ather, they reflect the joint effects of fac tors such as changes in technology, capital investment, capacity utilization, plant design and layout, skill and effort of the work force, m anagerial ability, and laborm anagem ent relations. The average annual rates of change presented in the text are based on the linear least squares trend of the logarithm s of the index numbers. Extensions of the in dexes will appear annually in the b l s bulletin, Produc tivity Measures fo r Selected Industries and Government Services. A technical note describing the m ethods used to develop the indexes is available from the Bureau’s Office of Productivity and Technology, Division of Industry Productivity and Technology Studies. Foreign Labor Developments OECD social ministers focus on rising pension, health costs M e l v in Brodsky The economic im plications of social policies are becoming a m ajor concern of the O rganization for Economic Coop eration and Developm ent ( o e c d ) as social expenditures account for a larger share of the gross national product ( g n p ). In their first meeting, social policy ministers of the o e c d m et on July 6 -7 , 1988, to discuss social policies for the 1990’s. Secretary of H ealth and H um an Services Otis R. Bowen led the U.S. delegation. The specific issues ad dressed were work and welfare; retirem ent pensions; and health care systems. In their discussions, the m inisters recognized that so cial protection systems m ust adapt to changing economic, social, and dem ographic conditions. In addition, in creased care m ust be taken to minimize economic dis incentives of social programs. The need for efficient, economical, and flexible social program s will increase over the next 50 years when social expenditures in real term s are expected to rise by oneth ird .1 A m ajor reason for this increase is the aging of the population. The o e c d projects th at the proportion of the population age 65 and older will increase from slightly m ore than 12 percent to alm ost 22 percent in the year 2040 when the num ber of older workers is expected to peak,2 creating a greater need for public sector social ex penditures, particularly old age pensions, disability pay ments, and medical care. G overnm ents will also be faced with other dem ands as well. Increasing num bers of single parent families, long-term unemployment, and persistent poverty all call out for increased government assistance. Work and welfare M inisters expressed support for a closer relationship between social policies, employment, the labor market, M elvin B rodsky is an econom ist in the Office of International O rgani zations, B ureau of International L abor Affairs, and serves as the D e p art m en t’s oecd coordinator. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis and education, noting that all are im portant elements in a dynamic system of social protection. Secretary-General Jean Claude Paye rem arked, “Policies for income support should not simply ‘passively’ support people during peri ods of unem ploym ent, but should have an active role, more closely integrated with education and training poli cies, in developing the skills and characteristics which would improve the labor m arket opportunities of the indi vidual.” Secretary Bowen agreed, noting th at welfare program s should be judged on how they prom ote inde pendence. He added that num erous State program s are now experimenting with “workfare” program s to encour age welfare recipients to enter the U.S. labor market. The m inisters agreed to four m ajor policies. First, that incom e su p p o rt policies should include both incom e m aintenance and training services. Second, that the im plem entation of income support, child care, and other policies will enable the growing num ber of single-parent families with low incomes to combine work and family responsibilities. Third, that the development of tax, em ployment, welfare, and supporting services should assist in m aintaining strong and stable families. For example, Canada and New Zealand have introduced the concept of a refundable tax credit whereby working m others can take the credit against their tax liability, or if not working, can receive refu n d ab le cred its as d irect cash paym ents. Fourth, that top priority should be given to the elimina tion of poverty and its causes. Retirement and pensions Discussions revealed a sense of urgency among the m inisters to act at once in the face of rapid growth in public pension expenditures in the o e c d countries. Some ministers observed that changes in their pension systems would be very slow and difficult to bring about. It was noted that in most countries, severe dem ographic pres sures will probably not occur during the next 15 to 20 years, but reforms need to be put in place to allow people to plan for their retirement. The o e c d ’s analytical work in the area of pensions h ig h lig h ts the seriousness of th e situ atio n . Betw een 1960-84, the share of national wealth devoted to financ ing pensions has doubled, making pensions the largest 47 M O N T H L Y LA BO R R E V IE W F ebruary 1989 • item in the budgets of m ost countries.3 Because both the benefit levels and the share of the older population eligible for pensions will continue to increase for some time, the situation will worsen. A fter the year 2010, alm ost all o e c d countries will be faced with a substantial increase in the ratio of aged to working population, reaching a peak around 2040. The o e c d estimates th at between 1988 and 2040, the dem ographic effect on pension expenditures rel ative to the n ational incom e will double the pension burden for the o e c d area as a whole and will increase by about 80 percent in the U nited States.4 The m inisters considered a num ber of policy options for meeting this challenge. One option is to increase the retirem ent age with opportunities for individual choice and part-tim e employment. The o e c d estim ates th at an increase in the retirem ent age— from 65 to 66 years o ld— would reduce pension outlays by 5 to 10 percent.5 A second possibility is to alter the balance between public, occupational, and private pension schemes. The o e c d notes th a t a shift from public to n o n p u b lic pension schemes would ease the pressures on the public system, although not necessarily on society as a whole. Foreign Labor Developments health care delivery systems. The Canadian delegate ob served that a com plicating factor was the high public expectation for health care, and that any change required strong public support. C ountry discussions showed a strong interest in measures for long-term cost control with the need to encourage healthier life styles. Secretary Bowen’s intervention stressed U.S. actions to control costs and maintain quality of health care. The subject of a i d s as an economic burden proved to be a main focus of discussion. The observer for the W orld H ealth O rganization noted th at a i d s cases reportly have increased 25 percent in the last 6 m onths to slightly more than 100,000 and th at the disease has entered the epi demic stage. The total cost to health care systems will rise substantially as the num ber of a i d s cases increases. For example, it is estim ated th at the total direct costs of medi cal care for a i d s patients in the U nited States in 1991 will be between $8 billion and $16 billion.8 M inisters sup ported research tow ard controlling and eliminating the disease, increased educational program s, and improved medical care and support systems for a i d s patients. Q Health care systems The m inisters noted that while today’s health care sys tems provide excellent services in o e c d countries, these systems have become increasingly complex and costly. H ealth care budgets in o e c d countries have climbed steadily from a 4.2-percent share of g n p in 1960 to a 7.5percent share in 1986.6 This represents a grow th rate alm ost twice th at of g n p . H ealth care expenditures in countries with private insurance schemes sim ilar to the U nited States have risen ju st as rapidly. F o r example, total national health expenditures in the U nited States have increased from $215.1 billion in 1979 to $387.4 bil lion in 19 84.7 In discussing cost control and management, the minis ters examined changes in patient cost sharing, restructur ing hospital and medical payment systems, and alternative Digitized for48 FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ---------- FOOTNOTES---------'See “ M aking Provision for Aging P opulations,” O c to b er-N o v e m b er 1987, p. 6. The o e c d Observer, 2Ibid. p. 5. 3Aging Populations, The Social Implications (W ashington, O rganiza tion for Econom ic C ooperation and D evelopm ent, 1988), p. 69. 4Retirement Pensions, Demographic Pressures and Economic Con straints (W ashington, O rg an izatio n for E conom ic C ooperatio n and D evelopm ent, 1988), p. 12. 5Ibid., p. 6. bHealth Care Systems: Needs, Control and Efficiency (W ashington, O rganization for Econom ic C ooperation and D evelopm ent, 1988), p. 5. 1Structural Adjustment and Economic Performance (W ashington, O r ganization for Econom ic C ooperation and D evelopm ent, 1987), p. 323. fb id , p. 11. Major Agreements Expiring Next Month T his list o f selected collective bargaining agreem ents expiring in M arch is based on inform ation collected by the B u reau ’s O ffice of C om pensation and W orking C onditions. The list includes agreem ents covering 1,000 w orkers or m ore. P riv a te in d u stry is arran ged in o rder of S ta n d ard In d u strial C lassification. Industry or activity Employer and location Labor organization1 Number of workers Private Construction................................. Associated Building Contractors of Northern Ohio (O hio)................... Associated General Contractors of Connecticut (Hartford, ct) ........... Associated General Contractors of Connecticut (Hartford, ct) ........... Associated General Contractors (Central Connecticut)........................ Associated General Contractors and Wabash Valley Contractors Association (Illinois) Carpenters........................................... Carpenters........................................... Laborers............................................. Carpenters........................................... Laborers.............................................. 1,800 1,200 5,000 1,750 1,500 Associated General Contractors and Construction Employers Association (Houston, tx) Associated General Contractors and Construction Employers Association (Houston, tx) Heavy Constructors Association (Kansas City, mo) .............................. Heavy Constructors Association (Kansas City, mo) .............................. Houston Sheet Metal Contractors Association (Texas).......................... Operating Engineers.......................... 1,000 Laborers.............................................. 1,000 Laborers.............................................. Operating Engineers.......................... Sheet Metal Workers........................ 3,000 1,000 1,500 Food products .............................. Dairy Industry Industrial Relations Association (Southern California) Winery Employers Association (California)............................................ Teamsters ........................................... Distillery Workers............................. 2,500 1,300 Tobacco ........................................ Loews Theatres Inc., Lorillard Division (North Carolina).................... Bakery, Confectionery and Tobacco Workers 2,100 Paper.............................................. Lily Tulip, Inc. (Springfield, mo) ............................................................... Electrical Workers ( ibew) ................ 1,000 Printing and publishing................ Printing Industries of Metropolitan New York, Printers League Section (New York) Printing Industries of Metropolitan New York (New York)................. Graphic Communications................. 1,600 Graphic Communications................. 2,000 Stone, clay, and glass products... Owens-Coming Fiberglas Corp. (Newark, ...................................... Various unions.................................... 1,600 Fabricated metal products.......... American Can Co. (Interstate).................................................................. Continental Group, Inc. (Interstate)......................................................... Machinists ......................................... Machinists ......................................... 1,100 1,800 Transportation equipment.......... Bethlehem Steel Corp., shipbuilding (Maryland).................................... Teledyne Industries Inc., Ryan Aeronautical Division (San Diego, ca) Marine and Shipbuilding Workers... Auto Workers .................................... 1,500 1,500 Instruments.................................. Xerox Corp. (Rochester, Clothing and Textile Workers.......... 3,400 Trucking........................................ Moving and Storage Industry of New York (New York, ny ) ................ Teamsters ........................................... 1,500 Air transportation........................ Delta Air Lines, pilots (Interstate)............................................................ American Airlines, ground service (Interstate) ....................................... Air Line Pilots.................................... Transport Workers............................. 4,200 12,000 Communication ........................... American Broadcasting Co. (Interstate) .................................................. 3,200 20,000 ny ) oh) .................................................................... General Telephone Co. of California........................................................ Broadcast Employees and Technicians Communications Workers................ U tilities......................................... Virginia Electric and Power Co. (Interstate) ........................................... Cincinnati Gas and Electric Co. (Ohio)................................................... Electrical Workers ( ibew) ................ Independent Utilities Union (Ind.) .. 4,700 1,200 Retail trade.................................... Independent food stores (Illinois and Indiana)........................................ Acme Markets (Interstate)......................................................................... Kroger and National Stores (St. Louis, mo) ............................................ Food and Commercial Workers....... Food and Commercial Workers....... Food and Commercial Workers....... 2,000 1,900 1,350 See footnote at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 49 M O N T H L Y LA BO R R EV IEW February 1989 • Major Agreements Expiring Next Month Continued—Major Agreements Expiring Next Month E m p lo y e r a n d lo c a tio n In d u s tr y or a c tiv ity N u m ber of L ab or o r g a n iz a tio n 1 w orkers Restaurants .................................. Restaurant-Hotel Employers’ Council (California)................................. Hyatt Hotels (California)............................................................................ Hotel Employees and Restaurant Employees Hotel Employees and Restaurant Employees 8,000 1,000 Bronx Realty Advisory Board (New York, NY)...................................... Service Employees............................. 4,000 Am usem ents................................. Distribution and film service companies (Interstate).............................. Theatrical Stage Em ployees............. 1,200 Hospitals ....................................... Appalachian Regional Hospitals, Inc. (Interstate).................................. Steelworkers...................................... 1,850 Massachusetts: State, County and Municipal Employees; Service Employees Real estate..................................... P u b lic General governm ent.................... E ducation..................................... General government.................... 'Affiliated with a f l - cio Digitized for50 FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 30,000 Michigan: Wrentham State Mental and Physically Handicapped School, paraprofessionals University of Michigan, graduate student teachers... State, County and Municipal Employees Teachers.............................................. 1,950 1,800 Ohio: Cleveland, municipal u n it............................................ State, County and Municipal Employees 1,800 Cleveland Police Department, patrol officers ........... Police Patrolmen’s Association (Ind.) 1,500 Southeast Pennsylvania Transit A uthority................. Milwaukee City School District, recreation employees Transport W orkers............................. State, County and Municipal Employees 5,200 Law enforcement.......................... T ran sit........................................... State government, general em ployees........................ Pennsylvania: Wisconsin: except where noted as independent (Ind.). 1,950 Developments in Industrial Relations Pan Am settles with Flight Attendants Financially-troubled Pan A m erican W orld Airways moved closer to its goal of winning $ 180 million a year in labor and cost reductions from its unions by settling with the Independent U nion of Flight A ttendants on a 39m onth contract calling for a reported cut of $33 million a year. Earlier in 1988, members of the A ir Line Pilots and the Flight Engineers Beneficial A ssociation had accepted cuts and Pan Am had imposed an 8-percent pay cut on Team sters’ members under provisions of the Railway L a bor A ct after the employees had refused to use arbitration to resolve bargaining differences. U nder the Flight A ttendants’ contract, wages were cut by differing am ounts, depending on the tier: for the upper tier or “A ” scale (those hired prior to M ay 1985), the cut was 11.715 percent; for the lower tier or “ B” scale (those hired after M ay 1985), the cut was 2 percent. The only increase was in the starting rate for B scale employees hired during the contract term; they begin at $1,000 a m onth, instead of $907. In return for the cuts, Pan Am agreed to move tow ard elim ination of the two tiers. This was accomplished by lengthening the pay progression schedule to 13 years, from 7 years, for B scale employees; but merging it with the schedule for A scale employees after 10 years of ser vice. Previously, top B rates were lower than top A rates. The accord also provided for cuts in paid vacation for some shorter service A and B scale employees, for de creases in per diem allowances, and for an increase in the num ber of foreign nationals Pan Am may hire (from 150 to 350). A t the tim e of the Flight A ttendants’ settlement, Pan A m was negotiating with the Team sters on a contract to replace the imposed term s for ram p service employees, and was in arbitration to settle differences with the T rans port W orkers over term s for mechanics. Retail trade contracts In Southern California, a total of 18,000 workers were covered by contracts the Food and Commercial W orkers “ D evelopm ents in Industrial R elations” is prepared by George R uben of the Division o f D evelopm ents in L abor-M anagem ent R elations, B ureau o f L abor Statistics, and is largely based on inform ation from secondary sources. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis and the Teamsters unions negotiated with the Food Em ployees Council, comprising eight grocery store chains. The Food and Commercial W orkers agreement for meat departm ent employees provides for wage increases totaling 35 cents an hour over the term; expands apprenticeship opportunities; more precisely defines m eatcutters’ duties; reduces employee eligibility for medical and dental insur ance coverage to 64 hours of work per month; and guaran tees 16 hours of work per week to part-tim e employees to assure that they will benefit from the eased eligibility. The 21-m onth contract, which will expire at the same time as the existing contract for retail clerks, also repre sented by the Food and Comm ercial W orkers, provides for a July 1989 m erger of pension and health and welfare funds for the two groups of employees. The 3-year Team sters’ accord, covering 8,000 ware house personnel and truck drivers employed by the eight chains, also was expected to set a pattern for Team sters settlem ents for 4,000 employees of other firms. Over the term , employees will receive wage increases totaling $1.30 an hour. Pay progression from the starting rate to the top rate was cut to 18 months, from 3 years, and the employers also agreed to two 10-cent-an-hour increases in benefits funding. U nder the prior agreement, maxim um pay rates were $14.52 an hour for drivers and $14.19 for warehouse employees. In the Eugene, o r , area, 1,000 grocery, bakery, and meat departm ent employees were covered by a November settle ment between Food and Commercial W orkers Local 555 and Food Employers, Inc., comprising Safeway Stores, Albertson’s Inc., Fred Meyer Inc., and other chains. D uring the 3-year agreement, which was retroactive to February 7, 1988, full-time employees will receive two 20-cent-an-hour increases in their wage rates, bringing the rates to $12.46 for m eatcutters and $10.03 for other em ployees. The increases do not apply to part-tim e courtesy clerks, who will now advance to $4 an hour, from $3.80, after they have worked 520 hours. The settlem ent also extends the progression period for journey persons to 30 m onths, from 24, and obligates the employers to increase their financing of health and wel fare benefits to $112 a m onth, from $84. Elsewhere, the Food and Commercial W orkers settled with Bradlees D epartm ent Store Co. for 3,000 employees of 24 stores in New Jersey and upstate New York. 51 M O N T H L Y LA B O R R E V IE W February 1989 • A ccording to the union, the m ajor issues were company proposals to assume sole adm inistration of the health and welfare and pension funds and to reduce fund reserves. U nder the settlem ent, the parties will continue to jointly adm inister the funds and the m inim um level of reserves was determ ined by an actuarial firm. Over the 3-year term , hourly wage increases will range from $1.15 for employees with less than 1 year of service to $1.40 for those with 10 or m ore years. Previous wage rates ranged from $5 to $7 an hour. In addition to a requirement that health and welfare ben efits be maintained at current levels, the contract calls for increases in the schedule of dental benefits; a $2 increase in the $14 a m onth pension rate for each year of service for current employees; and a “bonus” lump-sum payment in 1989 and 1990 to current retirees. The bonus will be equal to 1 m onth’s pension check. Two Chicago newspapers complete negotiations The Chicago Sun-Times settled with The Newspaper G uild and The Chicago Tribune settled with the Chicago Typographical U nion, a unit o f the C om m unications Workers. The Sun-Times, in its negotiations, initially sought a 3year contract calling for an imm ediate 3-percent wage cut, which would have been restored after 18 m onths, while The N ew spaper G uild sought three wage increases totaling 19.5 percent. A lthough the newspaper was oper ating at a profit, it ap p aren tly w anted the wage cut because it was losing circulation and advertising to the larger Chicago Tribune, and also faced large interest pay ments on money it borrow ed after it was purchased by an investm ent group. The Sun-Times settlement was reached a few hours after a strike deadline, but the 250 reporters, editors, and photog raphers remained on the job, continuing The Newspaper G uild’s strike-free history at the 40-year-old publication. The new 40-month contract, which was retroactive to the June 1, 1988, termination date of the preceding contract, did not provide for a first-year wage change. The employees will receive a $500 lump-sum payment and a 3-percent wage increase at the beginning of the second year, followed by an additional 3-percent increase at the beginning of the third year. Prior to the accord, reporters’ pay ranged from $625 a week at hiring to $895 after 5 years of service. O ther term s include com pany provision of attorneys to defend reporters against charges of libel resulting from their work; extension of m aternity leave for female em ployees to cover adoptions; establishm ent o f 2 weeks’ paternity leave for male employees; and a new plan to finance child care with pre-tax dollars, subject to Internal Revenue Service approval. A t the Chicago Tribune, the settlement ended a dispute that began in 1985, when 240 printers walked out to protest management efforts to gain greater control over hiring and 52 FRASER Digitized for https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Developments in Industrial Relations assignments in the composing room. U nder the 3-year set tlement, negotiated with the aid of former Secretary of Labor William J. Usery, the 120 people still on strike have the option of a $30,000 cash buyout of their job and pen sion rights or a lifetime annuity of $500 to $570 a m onth and company-paid health insurance. Fifty printers still on the job after unconditionally returning to work in 1986 have the choice of a $30,000 buyout or remaining on the job under the new contract, which provides for an immedi ate $ 150 a week wage increase to bring printers’ pay up to the $630 level at the Sun-Times. They will also receive guaranteed wage increases and possible autom atic cost-ofliving pay adjustm ents in the second and third years. When these employees leave their jobs, they will be replaced by lower paid “typographical associates.” Bakery workers rewarded for perfect attendance Keebler Co. and the Bakery, Confectionery and Tobacco Workers negotiated a 3-year contract for 3,500 cookie and cracker workers at six plants. The contract provided for wage increases totaling $1.45 an hour for production work ers and $4.65 for skilled trades workers. According to the union, previous wage rates ranged from $11.97 to $14.55 an hour. B enefit changes in clu d ed a new p ro g ram offering employees 1 day’s pay for each 4 m onths of perfect atten dance; a $10 increase in the weekly sickness and accident benefit, bringing the maximum to $160; and two $50 in creases in the $700 monthly pension for future retirees with 25 years of service, or with age and service totaling 80. T he p arties also agreed to fu rth e r discussions on retraining employees to avoid their being displaced by technological changes in the industry. The agreem ent runs to O ctober 31, 1991. The plants are in Denver, c o ; A tlanta and M acon, g a ; Cincinnati, o h ; G rand Rapids, M i; and Van Nuys, c a . n j Transit System contract runs 7 years The New Jersey Transit System and its largest union, the U nited T ransportation Union, negotiated a 7-year co n tract th a t was expected to lead m anagem ent and leaders of 10 other unions to add 3 years to their recently negotiated 4-year contracts scheduled to expire in June 1989. The 7-year agreem ent and the 4-year agreements were all retroactive to the July 1, 1985, date when condi tions of em ploym ent were subject to am endm ent under provisions of the Railway Labor Act. Com m on term s for the U nited T ransportation Union and the other unions during the 4-year period ending in June 1989 include a $1,000 lum p-sum paym ent in lieu of a wage increase ret roactive to July 1, 1985, 3-percent wage increases retro active to July of 1986 and 1987, and a 4-percent increase retroactive to July 1988. Term s for the 3 additional years of the U nited T rans portation U nion accord, which were expected to set a pattern for the other unions, included 5-percent wage in creases in July of 1989, 1990, and 1991; adoption of a pension plan supplem enting benefits under the Railroad R etirem ent System and financed by an employer obliga tion equal to 3 percent of employee earnings; adoption of a savings plan perm itting the 600 conductors and brakem en to defer paying taxes on up to $7,500 of their annual earnings; one new uniform a year plus $175 for m ainte nance (was one or two uniform s a year with the transit authority paying half the cost); and a reduction to 1 hour (previously 2 hours) in the m axim um perm itted unpaid layover between split shifts (meaning th at employees on a 2-hour layover will now norm ally receive 9.5 hours’ pay for their w orkday— two 4-hour split shifts at straighttim e rates plus 1 hour of the layover paid at time and one-half). The transit authority employs m ore than 4,000 people serving the State of New Jersey. Pulp mill adopts team approach K im berly-C lark Corp. announced a 5-year, $200 m il lion m odernization plan for its pulp and newsprint mill in Coosa Pines, a l , after members of three unions agreed to con tract changes intended to reduce labor costs. The changes, to be worked out by a joint committee, are revi sions in work rules and adoption of a team approach u n d er w hich em ployees w ould w ork interchangeably w ithin small groups and participate in determ ining pro duction m ethods and standards. The cost-saving changes include perm itting operators to m ake routine inspections and adjustm ents of their machines, rather than waiting for a skilled trad es em ployee, and perm itting skilled trades employees to assist in m aintenance w ork outside their current duties. Com pany officials said the cooperative approach was a vital aspect of its plan to enable the 40-year-old mill to compete with several new mills expected to be completed by other companies by 1992. The agreement stipulates that no employees on the pay roll on April 27, 1988, will be laid off, but the company did indicate that it hoped to cut about 250 jobs— 160 through new early retirement inducements and 90 through attrition. The settlem ent, which extends the expiration date of the existing contract by 3 years, to September 15, 1992, also provides for lum p-sum paym ents of $500 to employ ees on the payroll on O ctober 1, 1988, and $750 to those on the payroll on September 15, 1989, and wage increases of 25 cents an hour on January 1, 1989, 2.5 percent on September 15, 1990, and 2 percent on September 15, 1991. In addition, employees affected by changes in methods and procedures will receive, by June 1, 1989, pay adjust m ents from an allocation equal to an expected 20 cents an hour when averaged over all employees. Skilled trades workers will receive an additional 50-cent-an-hour in crease on June 1, 1989, in return for the broadening of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis their duties. A n official of one the unions, the U nited Paperworkers, said th at prior to the increases, his m em bers were paid $10 to $22 an hour, and some earned as m uch as $70,000 a year, with overtime. The two other unions involved in the settlem ent were the M achinists and Aerospace W orkers and the Interna tional B ro th erh o o d of E lectrical W orkers. W ith the U nited Paperworkers, the three unions represent 1,300 of the plant’s 1,800 employees. Omak Wood Products employees buy company In the forest products industry, the 635 employees of O m ak W ood Products, Inc., of Omak, w a , became own ers of the log-cutting and plywood m anufacturing facility when Sir James G oldsm ith accepted their offer of nearly $35 million. A spokesperson for the British industrialist said that G oldsm ith gave preferential treatm ent to the employees’ bid because he “believed it would be in the best interests of the com m unity” if they owned the opera tion. The employees’ decision to join in the purchase bidding was impelled by their concern that a purchase by another party m ight lead to cuts in operation in an area already suffering from an unem ploym ent rate of about 14 percent. Operations cuts had occurred after each of a succession of ownership changes preceding G oldsm ith’s acquisition of the property. The purchase drive was led by Lloyd Groomes, business agent of the local union of the Lumber and Sawmill W ork ers, a unit of the Carpenters union. He expects the purchase to be accomplished from operating profits, if possible. If not, money will be drawn from a contingency fund accu m ulated by setting aside 10 percent of each w orker’s earnings. The current 4-year contract, negotiated prior to the bidding, was not changed. N onunion employees also participated in the purchase. Disney World employees settle A fter rejecting two earlier proposals, employees of W alt Disney W orld in Lake Buena Vista, f l , approved a 3-year contract calling for a wage increase averaging 7.6 percent, retroactive to the O ctober 30 term ination date of the prior contract, and for an increase averaging 6 percent on A pril 1, 1989. The com pany said th at the initial in crease am ounted to 50 cents for employees at the top of rate ranges and 35 cents for others, and the 1989 increase am ounted to 45 and 30 cents, respectively. U nder the prior contract, starting and top rates were generally $4.85 and $6.80 an hour. O ther wage term s included a $500 lum p-sum paym ent to tipped food service employees, who will now be paid a flat rate equal to half the top rate for other employees and will now receive a 15-percent gratuity Disney will add to the bill for groups of 10 diners or more. Benefit changes include a maxim um m onthly pension 53 M O N T H L Y LA B O R R EV IEW February 1989 • of $530 after 25 years of service (was $420 after 20 years); a fourth week of paid vacation after 17 years of service; and the employee option of converting two days of annual sick leave to personal leave. The settlem ent covered 11,400 employees, including 1,200 at the Disney W orld Village Marketplace recently Digitized for 54FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Developments in Industrial Relations organized by the Food and Commercial Workers. The five other unions in the Service Trades Council that negotiated the settlement are the Hotel Employees and Restaurant Employees, the Teamsters, the Service Employees, the Transportation*C om m unications Union, and the T heatri cal Stage Employees. A note on communications The Monthly Labor Review welcomes com m unications that supple ment, challenge, or expand on research published in its pages. To be considered for publication, com m unications should be factual and analytical, not polemical in tone. Com m unications should be addressed to th e E d ito r-in -C h ie f, M onthly Labor Review, B u reau o f L ab o r Statistics, U.S. D epartm ent of Labor, W ashington, DC 20212. Current Labor Statistics Schedule of release dates for major statistical series .......................................................................................................... 56 Notes on Current Labor Statistics ..................................................................................................................................................................... 57 b ls Comparative indicators 1. L abor m arket indicators ............................................................................................................................................................................................... 67 2. A nnual and quarterly percent changes in com pensation, prices, and p ro d u c tiv ity ....................................................................................... 68 3. A lternative m easures of wage and com pensation ch an g es................................................................................................................................... 68 Labor force data 4. Em ploym ent status of the total population, d ata seasonally a d ju s te d ............................................................................................................. 69 5. E m ploym ent status of the civilian population, data seasonally adjusted ............. .............. . ......................................................................... 70 6. Selected em ploym ent indicators, d ata seasonally a d ju s te d ................................................................................................................................ 71 7. Selected unem ploym ent indicators, d ata seasonally a d ju s te d ............................................................................................................................ 72 8. U nem ploym ent rates by sex and age, data seasonally a d ju s te d ......................................................................................................................... 73 9. U nem ployed persons by reason for unem ploym ent, d ata seasonally adjusted .............................................................................................. 73 10. D u ration o f unem ploym ent, d ata seasonally a d ju s te d ......................................................................................................................................... 73 11. U nem ploym ent rates o f civilian w orkers, by S t a te ............................................................................................................................................... 74 12. E m ploym ent of w orkers by State .............................................................................................................................................................................. 74 13. E m ploym ent of w orkers by industry, d ata seasonally a d ju s te d .......................................................................................................................... 75 14. A verage weekly hours by industry, d ata seasonally a d ju s te d .............................................................................................................................. 76 15. A verage hourly earnings by i n d u s tr y ........................................................................................................................................................................ 77 16. Average weekly earnings by in d u s try ........................................................................................................................................................................ 78 17. H ourly E arnings Index by in d u stry ................................................................. ......................................................................................................... 79 18. Indexes o f diffusion: proportion of industries in w hich em ploym ent increased, seasonally a d ju s te d .................................................... 79 19. A n nual data: E m ploym ent status o f the noninstitutional p o p u la tio n ............................................................................................................. 80 20. A n nual data: E m ploym ent levels by industry ........................................................................................................................................................ 80 21. A n nual data: A verage hours and earnings levels by in d u s try ........................................................................................................................... 81 Labor compensation and collective bargaining data 22. E m ploym ent C ost Index, com pensation, by occupation and industry g ro u p ................................................................................................ 82 23. E m ploym ent C ost Index, wages and salaries, by occupation and industry group ....................................................................................... 83 24. E m ploym ent C ost Index, private nonfarm w orkers, by bargaining status, region, and area size............................................................. 84 25. Specified com pensation and wage adjustm ents from co ntract settlem ents, and effective wage adjustm ents, situations covering 1,000 w orkers or m o re .................................................................................................................................................................................. 85 26. A verage specified com pensation and wage adjustm ents, bargaining situations covering 1,000 w orkers or m o r e ............................... 85 27. A verage effective wage adjustm ents, bargaining situations covering 1,000 w orkers o r m o re ................................................................... 86 28. Specified com pensation and wage adjustm ents, State and local governm ent bargaining situations covering 1,000 w orkers o r m ore ............................................................................................................................................................................................................. 86 29. W ork stoppages involving 1,000 w orkers o r m ore ............................................................................................................................................... 86 Price data 30. C onsum er Price Index: U.S. city average, by expenditure category and com m odity and service groups ............................................. 87 31. C onsum er Price Index: U.S. city average and local data, all ite m s .................................................................................................................. 90 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 55 M O N T H L Y LA B O R R E V IE W February 1989 • Current Labor Statistics 32. Annual data: Consumer Price Index, all items and major groups.................................................................................................................... 91 33. P roducer Price Indexes by stage o f processing ...................................................................................................................................................... 92 34. P ro d u cer Price Indexes, by durability of p r o d u c t................................................................................................................................................. 93 35. A nnual data: P roducer Price Indexes by stage of processing ....................................................................................... 93 36. U.S. export price indexes by Standard International T rade C lassification..................................................................................................... 94 37. U.S. im port price indexes by S tandard In ternational T rade C lassific a tio n ......................................................................................... 95 38. U.S. export price indexes by end-use c ateg o ry ........................ 96 39. U.S. im port price indexes by end-use c a te g o r y ...................................................................................................................................................... 96 40. U.S. export price indexes by Standard Industrial C lassific a tio n ....................................................................................................................... 96 41. U.S. im port price indexes by Standard In d u strial C lassification....................................................................................................................... 97 Productivity data 42. Indexes o f productivity, hourly com pensation, and unit costs, d ata seasonally adjusted ......................................................................... 97 43. A n n u al indexes o f m ultifactor p ro d u c tiv ity ............................................................................................................................................................. 98 44. A n n u al indexes of productivity, hourly com pensation, unit costs, and prices ............................................................................................. 99 International comparisons 45. U nem ploym ent rates in nine countries, d ata seasonally adjusted .................................................................................................................... 100 46. A n n u al data: E m ploym ent status of civilian w orking-age population, ten c o u n trie s .................................................................................. 101 47. A n n u al indexes o f productivity and related m easures, twelve c o u n trie s .................................................... ........................... ........................ 102 Injury and illness data 48. A nnual data: O ccupational in ju ry and illness incidence r a t e s .......................................................................................................................... 103 Schedule of release dates for BLS statistical series S e rie s E m p lo y m e n t s itu a tio n ....................................... R e le a s e d a te P e rio d c o v e re d R e le a s e d a te P e rio d c o v e re d R e le a s e d a te M a r c h 10 F e b ru a ry A p r il F e b ru a ry 3 J a n u a ry F e b ru a ry 6 4 th q u a r t e r 7 P e rio d c o v e re d M a rc h M L R ta b le num ber 1; 4 - 2 1 P r o d u c tiv it y a n d c o s ts : N o n fa rm b u s in e s s a n d m a n u f a c tu r in g ............................................. N o n fin a n c ia l c o r p o r a t io n s ......................... M a rc h 7 ?• 4? 44 ?■ 4? 44 4 th q u a r t e r P r o d u c e r P r ic e I n d e x ......................................... F e b r u a r y 10 J a n u a ry M a rc h 17 F e b ru a ry C o n s u m e r P r ic e In d e x ..................................... F e b ru a ry 2 2 J a n u a ry M a r c h 21 F e b ru a ry R e a l e a r n i n g s ......................................................... F e b ru a ry 2 2 J a n u a ry M a rc h 21 F e b ru a ry A p r il 14 M a rc h 2; 3 3 - 3 5 A p r il 18 M a rc h 2; 3 0 - 3 2 A p r il 18 M a rc h 1 4 -1 7 M a jo r c o lle c t iv e b a r g a in in g s e ttle m e n ts . A p r il 2 5 3' 25 28 E m p lo y m e n t C o s t I n d e x ................................... A p r il 2 5 1 3' 22 24 U .S . Im p o r t a n d E x p o rt P ric e In d e x e s . . . A p r il 2 7 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1st q u a rte r 3 6 -4 1 N O T E S O N C U R R E N T LA B O R STA TISTIC S T his section o f the Review presents the principal statistical series collected and calculated by the B ureau o f L abor Statistics: series on labor force, em ploym ent, unem ploym ent, collective bargaining settle m ents, consum er, producer, and international prices, productivity, international com parisons, and injury and illness statistics. In the notes th at follow, th e d ata in each group of tables are briefly described, key definitions are given, notes on the d ata are set forth, and sources of additional inform ation are cited. changes in price. These adjustm ents are m ade by dividing current dollar values by the C onsum er Price Index or the ap propriate com ponent o f the index, then m ultiplying by 100. F o r exam ple, given a cu rren t hourly wage rate of $3 and a cu rren t price index num ber o f 150, where 1977 = 100, the hourly rate expressed in 1977 dollars is $2 ($ 3 / 150 X 100 = $2). T he $2 (or any o ther resulting values) are described as “ real,” “ co nstant,” o r “ 1977” dollars. Additional Information General notes T he following notes apply to several tables in this section: S e a s o n a l a d ju stm e n t. C ertain m onthly and quarterly d ata are adju sted to elim inate the effect on the d ata o f such factors as clim atic conditions, indu stry production schedules, opening and closing of schools, holiday buying periods, and vacation practices, which m ight prevent short-term evaluation o f the statistical series. Tables containing d ata th at have been adjusted are identified as “ seasonally a d ju sted .” (All o th er d ata are not seasonally adjusted.) Seasonal effects are estim ated on the basis of past experience. W hen new seasonal factors are com puted each year, revisions m ay affect seasonally adjusted d ata for several preceding years. (Seasonally adjusted d ata appear in tables 1 - 3 , 4 - 1 0 , 13, 14, 17, and 18.) Beginning in January 1980, the bls introduced two m ajo r m odifications in the seasonal adjustm ent m eth odology for labor force data. F irst, the d ata are seasonally adjusted with a procedure called x-11 arim a , which was developed at Statistics C an ad a as an extension of the stan d ard x - 1 1 m ethod previously used by BLS. A detailed description o f the procedure appears in The x-11 a r i m a Seasonal Adjustment Method by E stela Bee D agum (Statistics C anada, C atalogue No. 1 2 -5 6 4 E , F ebruary 1980). T he second change is th at seasonal factors are calculated for use during the first 6 m onths o f the year, ra th e r th an for the entire year, and then are calculated at m idyear for the July-D ecem ber period. H ow ever, revisions o f historical data continue to be m ade only at the end o f each calendar year. Seasonally adjusted labor force d ata in tables 1 and 4 - 1 0 were revised in the F ebruary 1989 issue o f the Review, to reflect experience th ro u g h 1988. A n n u al revisions o f the seasonally adjusted payroll d ata show n in tables 13, 14, and 18 were m ade in the July 1988 Review using the x-11 arim a seasonal ad ju stm en t m ethodology. New seasonal factors for productivity d ata in table 42 are usually introduced in the Septem ber issue. Seasonally adjusted indexes and percent changes from m onth to m o n th and from q u arter to q u arter are published for num erous C onsum er and P ro d u cer Price Index series. How ever, seasonally ad ju sted indexes are n ot published for the U.S. average All Item s cpi . O nly seasonally adjusted percent changes are available for this series. A d ju s t m e n t s fo r p r ic e c h a n g e s . Some d ata— such as the H ourly E arnings Index in table 17— are adjusted to elim inate the effect of D ata th at supplem ent the tables in this section are published by the B ureau in a variety o f sources. News releases provide the latest statistical inform ation published by the Bureau; the m ajo r recurring releases are published according to the schedule preceding these general notes. M ore inform ation about labor force, em ploym ent, and unem ploym ent d ata and the household and establishm ent surveys underlying the d ata are available in Employment and Earnings, a m onthly publication o f the Bureau. M ore data from the household survey are published in the d ata books— Revised Seasonally Adjusted Labor Force Statistics, B ulletin 2306, and Labor Force Statistics Derived From the Current Population Survey, B ulletin 2307. M ore d ata from th e establish m ent survey appear in tw o d ata books— Employment, Hours, and Earnings, United States, and Employment, Hours, and Earnings, States and Areas, and the supplem ents to these d ata books. M ore detailed inform ation on employee com pensation and collective bargaining settlem ents is published in the m onthly periodical, Current Wage Developments. M ore detailed data on consum er and prod u cer prices are published in the m onthly periodicals, The c p i Detailed Report, and Producer Price Indexes. D etailed d ata on all o f the series in this section are provided in the Handbook of Labor Statistics, w hich is published biennally by the Bureau, bls bulletins are issued covering productivity, injury and illness, and o ther d ata in this section. Finally, the Monthly Labor Review carries analytical articles on annual and longer term developm ents in labor force, em ploym ent, and unem ploym ent; em ployee com pensation and collective bargaining; prices; productivity; international com parisons; and injury and illness data. Symbols p = prelim inary. To increase the tim eliness o f som e series, prelim inary figures are issued based on representative but incom plete returns. r = revised. G enerally, this revision reflects the availability o f later d ata but m ay also reflect other adjustm ents, n.e.c. = not elsew here classified, n.e.s. = not elsew here specified. COMPARATIVE INDICATORS (Tables 1-3) C om parative indicators tables provide an overview and com parison o f m ajo r bls statistical series. C onsequently, although m any of the unem ploym ent rates for m ajo r dem ographic groups based on the C u rren t P opulation (“household” ) Survey are presented, while m eas included series are available m onthly, all m easures in these com parative ures of em ploym ent and average weekly hours by m ajo r industry sector tables are presented quarterly and annually. are given using nonagricultural payroll data. T he E m ploym ent Cost Index (com pensation), by m ajo r sector and by bargaining status, is include em ploym ent m easures from two chosen from a variety of bls com pensation and wage m easures because m ajo r surveys and inform ation on rates of change in com pensation provided by th e Em ploym ent C ost Index ( eci) program . T he labor it provides a com prehensive m easure o f em ployer costs for hiring labor, not ju st outlays for wages, and it is not affected by em ploym ent shifts force p articipation am ong occupations and industries. Labor m ark et https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis in d ic a t o r s rate, the em ploym ent-to-population ratio, and 57 M O N T H L Y L A B O R R E V IE W D ata on changes in c o m p e n sa tio n , F ebruary 1989 p r ic e s , and p r o d u c tiv ity • are presented in table 2. M easures of rates o f change o f com pensation and C u r r e n t L a b o r S ta tis tic s series, contribute to the variation in changes am ong the individual m easures. wages from the Em ploym ent C ost Index program are provided for all civilian nonfarm w orkers (excluding F ederal and household w orkers) and for all private nonfarm workers. M easures o f changes in: consum er prices for all urb an consum ers; p roducer prices by stage of processing; and the overall export and im port price indexes are given. M easures of p roductivity (o u tp u t per h our o f all persons) are provided for m ajor sectors. A lte r n a tiv e m easu res o f w age and c o m p e n sa tio n r a te s o f change, w hich reflect th e overall trend in labor costs, are sum m arized in table 3. Differences in concepts and scope, related to the specific purposes o f the Notes on the data D efinitions o f each series and notes on the d ata are contained in later sections o f these notes describing each set of data. F o r detailed descriptions o f each d ata series, see b l s Handbook of Methods, Bulletin 2285 (B ureau of L abor Statistics, 1988), as well as the additional bulletins, articles, and other publications noted in the separate sections o f the Review's “ C urrent L abor Statistics N otes.” U sers m ay also wish to consult Major Programs, Bureau of Labor Statistics, R epo rt 718 (B ureau o f L abor Statistics, 1985). EMPLOYMENT AND UNEMPLOYMENT DATA (Tables 1; 4-21) H o u seh o ld su rvey data r a t i o is total em ploym ent (including the resident A rm ed Forces) as a percent o f the noninstitutional population. p o p u la t io n Description of the series Notes on the data e m p l o y m e n t D A T A in this section are obtained from the C urrent Popu latio n Survey, a p rogram o f personal interview s conducted m onthly by the B ureau o f the C ensus for the B ureau o f L abor Statistics. T he sam ple consists of about 55,800 households selected to represent the U.S. population 16 years of age and older. H ouseholds are interview ed on a ro tatin g basis, so th at three-fourths o f the sam ple is the sam e for any 2 consecutive m onths. F rom tim e to tim e, and especially after a decennial census, a d ju st m ents are m ade in the C u rren t P opulation Survey figures to correct for estim ating errors during the preceding years. These adjustm ents affect the com parability o f historical data. A description o f these adjustm ents and th eir effect on the various d ata series appear in the E xplanatory N otes o f Employment and Earnings. D ata in tables 4 - 1 0 are seasonally adjusted, based on the seasonal experience through D ecem ber 1988. Definitions E m p l o y e d p e r s o n s include (1) all civilians who w orked for pay any tim e d uring the week w hich includes the 12th day o f the m onth or who w orked unpaid for 15 hours or m ore in a fam ily-operated enterprise and (2) those who were tem porarily absent from th eir regular jobs because o f illness, vacation, industrial dispute, or sim ilar reasons. M em bers of th e A rm ed Forces stationed in the U nited States are also included in the em ployed total. A person w orking at m ore th an one job is counted only in the job at which he o r she w orked the greatest num ber of hours. U n e m p l o y e d p e r s o n s are those who did not w ork during the survey week, but were available for w ork except for tem porary illness and had looked for jobs w ithin th e preceding 4 weeks. Persons who did n ot look for w ork because they were on layoff or w aiting to start new jobs w ithin th e next 30 days are also counted am ong the unem ployed. T he o v e r a l l u n e m p l o y m e n t r a t e represents the num ber unem ployed as a percent of the labor force, including the resident A rm ed Forces. T he c i v i l i a n e m p l o y m e n t r a t e represents the num ber unem ployed as a percent o f the civilian labor force. T he l a b o r f o r c e consists o f all em ployed or unem ployed civilians plus m em bers o f the A rm ed Forces stationed in the U nited States. Persons n o t i n t h e l a b o r f o r c e are those not classified as em ployed or unem ployed; this group includes persons who are retired, those engaged in th eir own housew ork, those not w orking while attending school, those unable to work because o f long-term illness, those discouraged from seeking w ork because of personal or job-m arket factors, and those who are voluntarily idle. T he n o n i n s t i t u t i o n a l p o p u l a t i o n com prises all persons 16 years o f age and older who are not inm ates of penal or m ental institutions, sanitarium s, o r hom es for the aged, infirm , or needy, and m em bers o f the A rm ed Forces stationed in the U nited States. T he l a b o r f o r c e p a r t i c i p a t i o n r a t e is the proportion o f the n o ninstitutional population th at is in the labor force. T he e m p l o y m e n t - Digitized for58 FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Additional sources of information F o r detailed explanations of the data, see b l s Handbook of Methods, B ulletin 2285 (B ureau of L abor Statistics, 1988). H istorical unadjusted d ata from 1948 to 1987 are available in Labor Force Statistics Derived from the Current Population Survey, B ulletin 2307 (B ureau of L abor Statistics, 1988). H istorical seasonally adjusted data appear in Labor Force Statistics Derived from the Current Population Survey: A Data book, Vol. II, Bulletin 2096 (B ureau of L abor Statistics, 1982), and Revised Seasonally Adjusted Labor Force Statistics, 1978-87, Bulletin 2306 (B ureau o f L abor Statistics, 1988). A com prehensive discussion o f the differences betw een household and establishm ent d ata on em ploym ent appears in G loria P. G reen, “ C om paring em ploym ent estim ates from household and payroll su r veys,” Monthly Labor Review, D ecem ber 1969, pp. 9 -2 0 . E sta b lish m en t su rvey data Description of the series Em ploym ent , hours , a n d earning s data in this section are com piled from payroll records reported m onthly on a voluntary basis to the B ureau o f L abor Statistics and its cooperating State agencies by m ore th an 300,000 establishm ents representing all industries except agriculture. In m ost industries, the sam pling probabilities are based on the size o f the establishm ent; m ost large establishm ents are therefore in the sam ple. (A n establishm ent is not necessarily a firm; it m ay be a branch plant, for exam ple, or w arehouse.) Self-em ployed persons and others not on a regular civilian payroll are outside the scope o f the survey because they are excluded from establishm ent records. This largely accounts for the difference in em ploym ent figures between the household and establishm ent surveys. Definitions A n e s t a b l i s h m e n t is an econom ic unit which produces goods or services (such as a factory or store) at a single location and is engaged in one type o f econom ic activity. E m p l o y e d p e r s o n s 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 m onth. Persons holding m ore th an one job (about 5 percent o f all persons in the labor force) are counted in each establishm ent w hich reports them . P r o d u c t i o n w o r k e r s in m anufacturing include w orking supervisors and nonsupervisory w orkers closely associated w ith production opera tions. Those w orkers m entioned in tables 1 2 -1 7 include production w orkers in m anufacturing and m ining; construction w orkers in con struction; and nonsupervisory w orkers in the following industries: tran sp o rtatio n and public utilities; wholesale and retail trade; finance, insurance, and real estate; and services. These groups account for about four-fifths o f the total em ploym ent on private nonagricultural payrolls. E a r n i n g s are the paym ents production o r nonsupervisory w orkers receive d uring th e survey period, including prem ium pay for overtim e o r late-shift w ork but excluding irregular bonuses and oth er special paym ents. R e a l e a r n i n g s are earnings adjusted to reflect the effects of changes in consum er prices. T he deflator for this series is derived from the C onsum er Price Index for U rban W age E arners and Clerical W orkers ( cpi-w ). T he H o u r l y E a r n i n g s I n d e x is calculated from average hourly earnings data adjusted to exclude the effects of two types o f changes th at are unrelated to underlying wage-rate develop m ents: fluctuations in overtim e prem ium s in m anufacturing (the only sector for w hich overtim e data are available) and the effects of changes and seasonal factors in the proportion o f w orkers in high-wage and lowwage industries. Publication o f the H ourly E arnings Index series shown in table 17 will be discontinued with the initial publication of D ecem ber 1988 d ata in the F ebruary 1989 issue of the Review (see G. D onald W ood, “ Em ploym ent C ost Index series to replace H ourly Earnings In d ex ,” Monthly Labor Review, July 1988, pp. 3 2 -3 5 ). H o u r s represent the average weekly hours of production o r nonsu pervisory w orkers for which pay was received, and are different from stan d ard or scheduled hours. O v e r t i m e h o u r s represent the portion of average weekly hours w hich was in excess o f regular hours and for w hich overtim e prem ium s were paid. T h e D i f f u s i o n I n d e x , introduced in the M ay 1983 Review, represents th e percent o f 185 nonagricultural industries in which em ploym ent was rising over the indicated period. O ne-half of the industries w ith unchanged em ploym ent are counted as rising. In line w ith Bureau practice, d ata for the 1-, 3-, and 6-m onth spans are seasonally adjusted, while those for th e 12-m onth span are unadjusted. T he diffusion index is useful for m easuring the dispersion o f econom ic gains or losses and is also an econom ic indicator. Notes on the data E stablishm ent d ata collected by the B ureau o f L abor Statistics are periodically adju sted to com prehensive counts o f em ploym ent (called “ben ch m ark s”). T he latest com plete ad justm ent was m ade with the release o f M ay 1988 data, published in the July 1988 issue of the Review. C onsequently, d ata published in the Review p rior to th at issue are not necessarily com parable to cu rrent data. U n adjusted d ata have been revised back to A pril 1986; seasonally adjusted d ata have been revised back to Jan u ary 1983. These revisions were published in the Supplement to Employment and Earnings (B ureau o f L abor Statistics, 1988). U n ad ju sted d ata from A pril 1987 forw ard, and seasonally ad ju sted d ata from Jan u ary 1984 forw ard are subject to revision in futu re benchm arks. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis In the establishm ent survey, estim ates for the 2 m ost recent m onths are based on incom plete returns and are published as prelim inary in the tables (13 to 18 in the Review). W hen all returns have been received, the estim ates are revised and published as final in the th ird m o n th of their appearance. T hus, A ugust data are published as prelim inary in O ctober and N ovem ber and as final in Decem ber. F o r the sam e reason, quarterly establishm ent d ata (table 1) are prelim inary for the first 2 m onths of publication and final in the th ird m onth. T hus, secondq u arter data are published as prelim inary in A ugust and Septem ber and as final in October. Additional sources of information D etailed national d ata from the establishm ent survey are published m onthly in the bls periodical, Employment and Earnings. E arlier com parable unadjusted and seasonally adjusted data are published in Employment, Hours, and Earnings, United States, 1909-84, Bulletin 1 3 1 2 -1 2 (B ureau of L abor Statistics 1985) and its annual supplem ent. F o r a detailed discussion of the m ethodology o f the survey, see bls Handbook of Methods, Bulletin 2285 (B ureau of L abor Statistics, 1988). A com prehensive discussion o f the differences between household and establishm ent d ata on em ploym ent appears in G lo ria P. Green, “ C om paring em ploym ent estim ates from household and payroll su r veys,” Monthly Labor Review, D ecem ber 1969, pp. 9 -2 0 . U n em p lo y m en t d ata b y S ta te Description of the series D ata presented in this section are obtained from tw o m ajo r sources— the C urrent P opulation Survey (cps) and the Local A rea U nem ploy m ent Statistics ( laus ) program , w hich is conducted in cooperation with State em ploym ent security agencies. M onthly estim ates o f the labor force, em ploym ent, and unem ploy m ent for States and sub-State areas are a key indicato r o f local econom ic conditions and form the basis for determ ining the eligibility of an area for benefits under F ederal econom ic assistance program s such as the Job T raining P artnership A ct and the Public W orks and E conom ic D evelopm ent Act. Insofar as possible, the concepts and definitions underlying these d ata are those used in the national estim ates obtained from the cps . Notes on the data D ata refer to State o f residence. M onthly d ata for 11 States— California, Florida, Illinois, M assachusetts, M ichigan, N ew Y ork, New Jersey, N o rth C arolina, Ohio, Pennsylvania, and Texas— are obtained directly from the CPS, because the size o f the sam ple is large enough to m eet bls standards o f reliability. D ata for the rem aining 39 States and the D istrict o f C olum bia are derived using standardized procedures established by bls . O nce a year, estim ates for the 11 States are revised to new population controls. F o r the rem aining States and the D istrict o f Colum bia, d ata are benchm arked to annual average cps levels. Additional sources of information Inform ation on the concepts, definitions, and technical procedures used to develop labor force d ata for States and sub-State areas as well as additional d ata on sub-States are provided in the m onthly B ureau o f L abor Statistics periodical, Employment and Earnings, and the annual report, Geographic Profde of Employment and Unemployment (B ureau o f L abor Statistics). See also bls Handbook of Methods, Bulletin 2285 (B ureau o f L abor Statistics, 1988). 59 M O N T H L Y LA BO R R EV IEW February 1989 • Current Labor Statistics COMPENSATION AND WAGE DATA (Tables 1-3; 22-29) Com pensation a n d wage data are gathered by the B ureau from business establishm ents, State and local governm ents, labor unions, collective bargaining agreem ents on file w ith the Bureau, and secondary sources. E m p loym en t C o st In d ex Description of the series T he E m p l o y m e n t C o s t I n d e x (eci) is a quarterly m easure of the rate o f change in com pensation per h o u r w orked and includes wages, salaries, and em ployer costs o f em ployee benefits. It uses a fixed m arket basket o f labor— sim ilar in concept to the C onsum er Price Index’s fixed m ark et basket o f goods and services— to m easure change over tim e in em ployer costs o f em ploying labor. T he index is not seasonally adjusted. Statistical series on to tal com pensation costs, on wages and salaries, an d on benefit costs are available for private nonfarm w orkers excluding proprietors, th e self-em ployed, and household workers. The to tal com pensation costs and wages and salaries series are also available for State and local governm ent w orkers and for the civilian nonfarm econom y, w hich consists o f private industry and State and local governm ent w orkers com bined. F ederal w orkers are excluded. T he E m ploym ent Cost Index probability sam ple consists o f about 3,400 p rivate nonfarm establishm ents providing about 18,000 occupa tional observations and 700 State and local governm ent establishm ents providing 3,500 occupational observations selected to represent total em ploym ent in each sector. O n average, each reporting unit provides wage and com pensation inform ation on five well-specified occupations. D ata are collected each q u a rte r for the pay period including the 12th day o f M arch, June, Septem ber, and Decem ber. Beginning w ith June 1986 data, fixed em ploym ent weights from the 1980 C ensus o f P opulation are used each q u a rte r to calculate the indexes for civilian, private, and State and local governm ents. (P rior to June 1986, th e em ploym ent weights are from the 1970 C ensus o f P o pulation.) These fixed weights, also used to derive all of the industry and occupation series indexes, ensure th a t changes in these indexes reflect only changes in com pensation, n ot em ploym ent shifts am ong industries o r occupations w ith different levels o f wages and com pensa tio n . F o r th e b a r g a in in g s ta tu s , re g io n , a n d m e t r o p o l i t a n / nonm etro p o litan area series, however, em ploym ent d a ta by industry and occupation are not available from the census. Instead, the 1980 em ploym ent w eights are reallocated w ithin these series each qu arter based on the cu rren t sam ple. T herefore, these indexes are not strictly com parable to those for the aggregate, industry, and occupation series. Definitions T o ta l c o m p e n sa tio n costs include wages, salaries, and the em ployer’s costs for em ployee benefits. W a g e s a n d s a l a r i e s consist of earnings before payroll deductions, including produ ctio n bonuses, incentive earnings, com m issions, and cost-of-living ad justm ents. B e n e f i t s include th e cost to em ployers for paid leave, supplem ental pay (including no n p ro d uction bonuses), insurance, retirem ent and savings plans, and legally required benefits (such as Social Security, w orkers’ com pensation, and unem ploym ent insurance). E xcluded from wages and salaries and em ployee benefits are such item s as paym ent-in-kind, free room and board, and tips. 60 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Notes on the data T he Em ploym ent Cost Index for changes in wages and salaries in the private nonfarm econom y was published beginning in 1975. Changes in total com pensation cost— wages and salaries and benefits com bined— were published beginning in 1980. T he series for changes in wages and salaries and for total com pensation in the State and local governm ent sector and in the civilian nonfarm econom y (excluding F ederal em ployees) were published beginning in 1981. H istorical indexes (June 1981 = 100) o f the quarterly rates o f change are presented in the M arch issue o f the bls periodical, Current Wage Developments. Additional sources of information F o r a m ore detailed discussion o f the Em ploym ent Cost Index, see the Handbook of Methods, B ulletin 2285 (B ureau o f L abor Statistics, 1988), and the following Monthly Labor Review articles: “ Em ploym ent C ost Index: a m easure o f change in the ‘price of labor’,” July 1975; “ How benefits will be incorporated into the E m ploym ent C ost Index,” Jan u ary 1978; “ E stim ation procedures for the E m ploym ent Cost Index,” M ay 1982; and “ Introducing new weights for the E m ploym ent C ost Index,” June 1985. D ata on the eci are also available in bls quarterly press releases issued in the m onth following the reference m onths o f M arch, June, Septem ber, and Decem ber; and from the Handbook of Labor Statistics, B ulletin 2217 (B ureau o f L abor Statistics, 1985). C o lle ctiv e b argain in g se ttle m e n ts Description of the series C o l l e c t i v e b a r g a i n i n g s e t t l e m e n t s d ata provide statistical m easures of negotiated adjustm ents (increases, decreases, and freezes) in com pensa tion (wage and benefit costs) and wages alone, quarterly for private industry and sem iannually for State and local governm ent. C om pensa tion m easures cover all collective bargaining situations involving 5,000 w orkers o r m ore and wage m easures cover all situations involving 1,000 w orkers or m ore. These data, covering private nonagricultural indus tries and State and local governm ents, are calculated using inform ation obtained from bargaining agreem ents on file w ith the B ureau, parties to th e agreem ents, and secondary sources, such as new spaper accounts. T he data are not seasonally adjusted. Settlem ent d ata are m easured in term s of future specified a d ju st m ents: those th at will occur w ithin 12 m onths o f the co n tract effective date— first-year— and all adjustm ents th at will occur over the life o f the co n tract expressed as an average annual rate. A d justm ents are w orker weighted. B oth first-year and over-the-life m easures exclude wage changes th at m ay occur under cost-of-living clauses th at are triggered by future m ovem ents in the C onsum er Price Index. E f f e c t i v e w a g e a d j u s t m e n t s m easure all adjustm ents occurring in the reference period, regardless o f the settlem ent date. Included are changes from settlem ents reached during the period, changes deferred from co ntracts negotiated in earlier periods, and changes under cost-of-living ad ju stm en t clauses. E ach wage change is w orker weighted. T he changes are pro rated over all w orkers u n der agreem ents during the reference period yielding the average adjustm ent. Definitions W a g e r a t e c h a n g e s are calculated by dividing newly negotiated wages by the average straight-tim e hourly wage rate plus shift prem ium at the tim e the agreem ent is reached. C om pensation changes are calculated by dividing the change in the value of the newly negotiated wage and benefit package by existing average hourly com pensation, which includes the cost of previously negotiated benefits, legally required social insurance program s, and average hourly earnings. C o m p e n s a t i o n c h a n g e s are calculated by placing a value on the benefit portion of the settlem ents at the tim e they are reached. The cost estimates are based on the assum ption that conditions existing at the tim e of settlem ent (for example, m ethods of financing pensions or com position of labor force) will rem ain constant. The data, therefore, are m easures of negotiated changes and not of total changes of employer cost. C o n t r a c t d u r a t i o n runs from the effective date o f the agreem ent to th e expiration d ate or first wage reopening date, if applicable. A verage annual percent changes over the co n tract term take account of the com pounding o f successive changes. Notes on the data C om parisons o f m ajo r collective bargaining settlem ents for State and local governm ent w ith those for private industry should note differences in occupational mix, bargaining practices, and settlem ent characteris tics. Professional and w hite-collar employees, for exam ple, m ake up a m uch larger prop ortion o f the w orkers covered by governm ent than by private industry settlem ents. L um p-sum paym ents and cost-of-living ad ju stm en t (cola ) clauses, on the oth er hand, are rare in governm ent but com m on in private industry settlem ents. Also, State and local governm ent bargaining frequently excludes item s such as pension benefits and holidays, th at are prescribed by law, while these item s are typical bargaining issues in private industry. Additional sources of information F o r a m ore detailed discussion on the series, see the b l s Handbook of Methods, B ulletin 2285 (B ureau o f L abor Statistics, 1988). C om prehen sive d ata are published in press releases issued quarterly (in January, A pril, July, and O ctober) for private industry, and sem iannually (in F ebruary and A ugust) for State and local governm ent. H istorical data and additional detailed tabulations for the p rior calendar year appear in th e A p ril issue o f the bls periodical, Current Wage Developments. W ork stop p ages T he num ber of w orkers directly involved in the N u m b e r o f d a y s i d l e : The aggregate num ber of w orkdays lost by w orkers involved in the stoppages. D a y s o f i d l e n e s s a s a p e r c e n t o f e s t i m a t e d w o r k i n g t i m e : A ggregate w orkdays lost as a percent o f the aggregate num ber o f standard w orkdays in the period m ultiplied by total em ploym ent in the period. Notes on the data T his series is not com parable w ith the one term inated in 1981 th at covered strikes involving six w orkers or m ore. Additional sources of information D ata for each calendar year are reported in a bls press release issued in the first q u arter of the following year. M onthly and historical d ata appear in the bls periodical, Current Wage Developments. H istorical d ata appear in the Handbook of Labor Statistics, Bulletin 2217 (Bureau o f L abor Statistics, 1985). O th er co m p en sation data O ther bls d ata on pay and benefits, not included in the C urrent L abor Statistics section o f the Monthly Labor Review, appear in and consist of the following: Industry Wage Surveys provide data for specific occupations selected to represent an in d u stry ’s wage stru ctu re and the types o f activities perform ed by its workers. T he B ureau collects inform ation on weekly w ork schedules, shift operations and pay differentials, paid holiday and vacation practices, and inform ation on incidence of health, insurance, and retirem ent plans. R eports are issued throughout the year as the surveys are com pleted. Sum m aries o f the d ata and special analyses also appear in the Monthly Labor Review. Area Wage Surveys annually provide d ata for selected office, clerical, professional, technical, m aintenance, toolroom , pow erplant, m aterial m ovem ent, and custodial occupations com m on to a wide variety of industries in the areas (labor m arkets) surveyed. R eports are issued thro u g h o u t the year as the surveys are com pleted. Sum m aries o f the d ata and special analyses also appear in the Review. The National Survey of Professional, Administrative, Technical, and Clerical Pay provides detailed inform ation annually on salary levels and Description of the series D ata on w o r k s t o p p a g e s m easure the num ber and d u ration o f m ajor strikes o r lockouts (involving 1,000 w orkers or m ore) occurring during th e m o n th (or year), the num ber o f w orkers involved, and the am ount o f tim e lost because o f stoppage. D ata are largely from new spaper accounts and cover only establish m ents directly involved in a stoppage. They do not m easure the indirect o r secondary effect o f stoppages on o ther establishm ents whose employees are idle owing to m aterial shortages or lack o f service. Definitions T he num ber o f strikes and lockouts involving w orkers o r m ore and lasting a full shift o r longer. N u m b e r o f s to p p a g e s: 1,000 W o r k e r s in v o lv e d : stoppage. distributions for the types of jobs m entioned in the survey’s title in private employm ent. A lthough the definitions o f the jobs surveyed reflect the duties and responsibilities in private industry, they are designed to m atch specific pay grades o f Federal white-collar employees under the General Schedule pay system. Accordingly, this survey provides the legally required inform ation for com paring the pay of salaried employees in the Federal civil service with pay in private industry. (See Federal Pay Com parability A ct o f 1970, 5 u .s .c . 5305.) D ata are published in a bls news release issued in the sum m er and in a bulletin each fall; sum m aries and analytical articles also appear in the Review. Employee Benefits Survey provides nationw ide inform ation on the incidence and characteristics of em ployee benefit plans in m edium and large establishm ents in the U nited States, excluding A laska and Hawaii. D a ta are published in an annual bls news release and bulletin, as well as in special articles appearing in the Review. 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis base period (1982 = 100 for many Producer Price Indexes or 1982-84 = 100 for many Consumer Price Indexes, unless otherwise noted). 61 M O N T H L Y LA BO R R E V IE W February 1989 • Current Labor Statistics P ro d u cer P r ic e In d e x es C onsum er P r ic e In d e x es Description of the series T he C onsum er P rice Index (cpi) is a m easure o f the average change in the prices paid by urb an consum ers for a fixed m arket basket of goods and services. T he cpi is calculated m onthly for tw o population groups, one consisting only o f urban households whose prim ary source o f incom e is derived from the em ploym ent o f wage earners and clerical w orkers, an d th e o th er consisting of all urban households. T he wage earn er index ( cpi- w ) is a continuation o f the historic index th a t was introduced well over a half-century ago for use in wage negotiations. As new uses were developed for the cpi in recent years, the need for a b ro ad er an d m ore representative index becam e apparent. T he all urban consum er index (cpi- u ), introduced in 1978, is representative o f the 1 9 8 2 -8 4 buying habits o f about 80 percent of the noninstitutional population o f th e U nited States at th at tim e, com pared w ith 32 percent represented in the cpi-w . In addition to wage earners and clerical w orkers, th e CPi-u covers professional, m anagerial, and technical w orkers, the self-em ployed, short-term workers, the unem ployed, retirees, and others not in the labor force. T he cpi is based on prices o f food, clothing, shelter, fuel, drugs, tran sp o rtatio n fares, d o cto rs’ and dentists’ fees, and o ther goods and services th at people buy for day-to-day living. T he quantity and quality o f these item s are kept essentially unchanged between m ajo r revisions so th at only price changes will be m easured. All taxes directly associated w ith the p u rchase and use o f item s are included in the index. D ata collected from m ore th an 21,000 retail establishm ents and 60,000 housing units in 91 urban areas across the country are used to develop th e “ U.S. city average.” Separate estim ates for 27 m ajo r urban centers are presented in table 31. The areas listed are as indicated in footnote 1 to the table. The area indexes m easure only the average change in prices for each area since the base period, and do not indicate differences in th e level of prices am ong cities. Description of the series P roducer P ric e Indexes ( ppi) m easure average changes in prices received by dom estic producers of com m odities in all stages of processing. T he sam ple used for calculating these indexes currently contains about 3,100 com m odities and about 75,000 quotations per m onth selected to represent the m ovem ent o f prices of all com m odities produced in the m anufacturing, agriculture, forestry, fishing, m ining, gas and electricity, and public utilities sectors. T he stage o f processing stru ctu re o f P roducer Price Indexes organizes products by class of buyer and degree o f fabrication (th at is, finished goods, interm ediate goods, and crude m aterials). T he traditional com m odity stru ctu re o f ppi organizes products by sim ilarity of end use or m aterial com position. To the extent possible, prices used in calculating P roducer Price Indexes apply to the first significant com m ercial transaction in the U nited States from the production or central m arketing point. Price d ata are generally collected m onthly, prim arily by m ail questionnaire. M ost prices are obtained directly from producing com panies on a voluntary and confidential basis. Prices generally are reported for the T uesday o f the week containing the 13th day o f the m onth. Since January 1987, price changes for the various com m odities have been averaged together w ith im plicit quantity weights representing their im portance in the total net selling value o f all com m odities as o f 1982. T he detailed d ata are aggregated to obtain indexes for stage-ofprocessing groupings, com m odity groupings, durability-of-product groupings, and a num ber of special com posite groups. All Pro d u cer Price Index d ata are subject to revision 4 m onths after original publication. Notes on the data Beginning w ith the January 1986 issue, the Notes on the data In Jan u ary 1983, the B ureau changed the way in w hich hom eow nership costs are m easured for the cpi-u . A rental equivalence m ethod replaced th e asset-price approach to hom eow nership costs for th at series. In Jan u ary 1985, the sam e change was m ade in the cpi-w . The central purpose o f th e change was to separate shelter costs from the investm ent com ponent o f hom eow nership so th at the index would reflect only the cost o f shelter services provided by ow ner-occupied hom es. A n u pdated cpi-u and cpi-w were introduced w ith release o f the Jan u ary 1987 data. Review is no longer presenting tables o f P roducer Price Indexes for com m odity groupings, special com posite groups, o r s ic industries. H ow ever, these d ata will continue to be presented in the B ureau’s m onthly publication Producer Price Indexes. T he B ureau has com pleted the first m ajo r stage of its com prehensive overhaul o f the theory, m ethods, and procedures used to construct the P roducer Price Indexes. Changes include the replacem ent o f judg m en t sam pling w ith probability sam pling techniques; expansion to system atic coverage o f the net o u tput of virtually all industries in the m ining and m anufacturing sectors; a shift from a com m odity to an industry orientation; the exclusion of im ports from , and the inclusion of exports in, the survey universe; and the respecification of com m odities priced to Additional sources of information F o r a discussion o f the general m ethod for com puting the cpi, see b l s Handbook of Methods, Bulletin 2285 (B ureau of L abor Statistics, 1988). T he recent change in the m easurem ent o f hom eow nership costs is discussed in R obert G illingham and W alter Lane, “ C hanging the treatm en t o f shelter costs for hom eow ners in the cpi,” Monthly Labor Review, July 1982, pp. 9 -1 4 . A n overview of the recently introduced revised cpi, reflecting 1 9 8 2 -8 4 expenditure patterns, is contained in The Consumer Price Index: 1987 Revision, R eport 736 (B ureau of L abor Statistics, 1987). A dditional detailed cpi d ata and regular analyses of consum er price changes are provided in the c p i Detailed Report, a m onthly publication o f the Bureau. H istorical d ata for the overall cpi and for selected groupings m ay be found in the Handbook of Labor Statistics, Bulletin 2217 (B ureau o f L abor Statistics, 1985). Digitized for62 FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis conform to B ureau of the C ensus definitions. These and oth er changes have been phased in gradually since 1978. T he result is a system of indexes th at is easier to use in conjunction with data on wages, productivity, and em ploym ent and oth er series th at are organized in term s of the Standard Industrial Classification and the C ensus product class designations. Additional sources of information F o r a discussion of the m ethodology for com puting P roducer Price Indexes, see b l s Handbook of Methods, Bulletin 2285 (B ureau o f L abor Statistics, 1988). A dditional detailed d ata and analyses of price changes are provided m onthly in Producer Price Indexes. Selected historical data m ay be found in the Handbook of Labor Statistics, Bulletin 2217 (B ureau of L abor Statistics, 1985). each weight category and are then aggregated to the sitc level. The values assigned to each weight category are based on trad e value figures com piled by the Bureau of the Census. The trade weights currently used to com pute both indexes relate to 1985. International Price Indexes Description of the series T he bls I n t e r n a t i o n a l P r i c e P r o g r a m produces quarterly export and im port price indexes for nonm ilitary goods traded between the U nited States and the rest o f the world. T he export price index provides a m easure o f price change for all products sold by U.S. residents to foreign buyers. (“ R esidents” is defined as in the national incom e accounts: it includes corporations, businesses, and individuals but does not require the organizations to be U.S. owned n o r the individuals to have U.S. citizenship.) T he im port price index provides a m easure of price change for goods purchased from other countries by U.S. residents. W ith publication of an all-im port index in F ebruary 1983 and an all-export index in F ebruary 1984, all U.S. m erchandise im ports and exports now are represented in these indexes. T he reference period for the indexes is 1985= 100, unless otherw ise indicated. T he p roduct universe for both the im port and export indexes includes raw m aterials, agricultural products, sem ifinished m anufactures, and finished m anufactures, including both capital and consum er goods. Price d ata for these item s are collected quarterly by m ail questionnaire. In nearly all cases, the d ata are collected directly from the exporter or im porter, although in a few cases, prices are obtained from o ther sources. To the extent possible, the d ata gathered refer to prices at the U.S. b o rd er for exports and at either the foreign border o r the U.S. border for im ports. F o r nearly all products, the prices refer to transactions com pleted d uring the first 2 weeks o f the th ird m onth o f each calendar q u arter— M arch, June, Septem ber, and Decem ber. Survey respondents are asked to indicate all discounts, allowances, and rebates applicable to th e reported prices, so th at the price used in the calculation o f the indexes is the actual price for which the p roduct was bought or sold. In addition to general indexes o f prices for U.S. exports and im ports, indexes are also published for detailed product categories o f exports and im ports. These categories are defined by the 4- and 5-digit level of detail o f the Stan d ard Industrial T rade C lassification System (sitc). The calculation o f indexes by sitc category facilitates the com parison of U.S. price trends and sector production w ith sim ilar d ata for other countries. D etailed indexes are also com puted and published on a Stan d ard In d u strial Classification (sic-based) basis, as well as by enduse class. Notes on the data T he export and im port price indexes are weighted indexes o f the Laspeyres type. Price relatives are assigned equal im portance w ithin Because a price index depends on the sam e item s being priced from period to period, it is necessary to recognize when a p ro d u c t’s specifications or term s of transaction have been modified. F o r this reason, the B ureau’s quarterly questionnaire requests detailed descrip tions o f the physical and functional characteristics o f the p roducts being priced, as well as inform ation on the num ber of units bought or sold, discounts, credit term s, packaging, class o f buyer or seller, and so forth. W hen there are changes in either the specifications or term s of transaction o f a product, the dollar value of each change is deleted from the total price change to obtain the “p u re” change. O nce this value is determ ined, a linking procedure is em ployed which allows for the continued repricing o f the item. F o r the export price indexes, the preferred pricing basis is f.a.s. (free alongside ship) U.S. port of exportation. W hen firm s report export prices f.o.b. (free on board), production point inform ation is collected which enables the B ureau to calculate a shipm ent cost to the port of exportation. A n attem pt is m ade to collect tw o prices for im ports. The first is the im port price f.o.b. at the foreign port of exportation, which is consistent with the basis for valuation of im ports in the national accounts. The second is the im port price c.i.f. (cost, insurance, and freight) at the U.S. port o f im portation, which also includes the other costs associated with bringing the product to the U.S. border. It does not, however, include duty charges. F or a given product, only one price basis series is used in the construction o f an index. Beginning in 1988, the B ureau has also been publishing a series of indexes w hich represent the price of U.S. exports and im ports in foreign currency term s. Additional sources of information F o r a discussion of the general m ethod o f com puting International Price Indexes, see b l s Handbook of Methods, Bulletin 2285 (B ureau of L abor Statistics, 1988). A dditional detailed d ata and analyses of international price develop m ents are presented in the B ureau’s quarterly publication U.S. Import and Export Price Indexes and in occasional Monthly Labor Review articles prepared by bls analysts. Selected historical d ata m ay be found in the Handbook of Labor Statistics, Bulletin 2217 (B ureau o f L abor Statistics, 1985). F o r fu rth er inform ation on the foreign currency indexes, see “ bls publishes average exchange rate and foreign currency price indexes,” Monthly Labor Review, D ecem ber 1987, pp. 4 7 -4 9 . PRODUCTIVITY DATA (Tables 2; 42-44) U.S. productivity and related data Description of the series T he productivity m easures relate real physical o u tput to real input. As such, they encom pass a fam ily of m easures w hich include single factor productivity m easures, such as o u tput per unit of labor input (o u tp u t per h our) or o u tput per unit of capital input, as well as m easures o f m ultifactor productivity (output per unit of com bined labor and capital inputs). T he B ureau indexes show the change in output relative to changes in the various inputs. T he m easures cover the business, nonfarm business, m anufacturing, and nonfinancial corporate sectors. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis C orresponding indexes of hourly com pensation, unit labor costs, unit nonlabor paym ents, and prices are also provided. Definitions O u t p u t p e r h o u r o f a l l p e r s o n s (labor productivity) is the value of goods and services in constant prices produced per hour o f labor input. O u t p u t p e r u n i t o f c a p i t a l s e r v i c e s (capital productivity) is the value of goods and services in constant dollars produced per unit of capital services input. M u l t i f a c t o r p r o d u c t i v i t y is o u tput per unit of com bined labor and capital inputs. Changes in this m easure reflect changes in a num ber of factors which affect the production process such as changes in technology, shifts in the com position o f the labor force, changes in 63 M O N T H L Y LA BO R R E V IE W February 1989 Current Labor Statistics • capacity utilization, research and developm ent, skill and efforts of the work force, m anagem ent, and so forth. C hanges in the output per hour m easures reflect the im pact o f these factors as well as the substitution of capital for labor. C o m p e n s a t io n p e r h o u r is the wages and salaries o f employees plus em ployers’ co ntributions for social insurance and private benefit plans, and the wages, salaries, and supplem entary paym ents for the selfem ployed (except for nonfinancial corporations in w hich there are no self-em ployed)— the sum divided by hours paid for. per hour R e a l c o m p e n sa tio n is com pensation per h our deflated by the C onsum er Price Index for All U rb an Consum ers. U n i t l a b o r c o s t s are the labor com pensation costs expended in the p roduction o f a unit o f output and are derived by dividing com pensa tion by o utput. U n it n o n la b o r p a y m e n ts include profits, depreciation, interest, and indirect taxes per unit of output. They are com puted by subtracting com pensation o f all persons from current dollar value o f o u tp u t and dividing by output. U n it n o n la b o r c o sts contain all the com ponents o f unit nonlabor paym ents e x c e p t unit profits. U n i t p r o f i t s include corporate profits w ith inventory valuation and capital consum ption ad justm ents per unit of output. H o u r s o f a ll p e r s o n s are the total hours paid of payroll w orkers, self- em ployed persons, and unpaid fam ily w orkers. C a p i t a l s e r v i c e s is the flow o f services from the capital stock used in production. It is developed from m easures o f the net stock of physical Notes on the data C onstant-dollar output for the b u s i n e s s s e c t o r is equal to constantdollar gross national p roduct but excludes the rental value of ow ner-occupied dwellings, the rest-of-w orld sector, the output of nonprofit institutions, the o u tput of paid em ployees o f private house holds, general governm ent, and the statistical discrepancy. O utp u t of the n o n f a r m b u s i n e s s s e c t o r is equal to business sector outpu t less farm ing. T he m easures are derived from d ata supplied by the B ureau of E conom ic Analysis, U.S. D epartm ent of Com m erce, and the Federal Reserve Board. Q uarterly m anufacturing o u tput indexes are adjusted by the B ureau of L abor Statistics to annual m easures o f m anufacturing o u tput (gross product originating) from the B ureau of Econom ic Analysis. C om pensation and hours d ata are developed from data o f the B ureau of L abor Statistics and the B ureau of E conom ic Analysis. T he productivity and associated cost m easures in tables 4 2 - 4 4 describe the relationship betw een o u tput in real term s and the labor tim e and capital services involved in its production. They show the changes from period to period in the am ount of goods and services produced per unit o f input. A lthough these m easures relate o u tp u t to hours and capital services, they do not m easure the contributions of labor, capital, or any o ther specific factor of production. R ather, they reflect the joint effect o f m any influences, including changes in technology; capital investm ent; level of output; utilization of capacity, energy, and m aterials; the organization o f production; m anagerial skill; and the characteristics and efforts of the w ork force. assets— equipm ent, structures, land, and inventories— weighted by rental prices for each type o f asset. L a b o r a n d c a p i t a l i n p u t s com bined are derived by com bining changes in labor and capital inputs w ith weights w hich represent each com po n en t’s share o f to tal output. T he indexes for capital services and com bined units o f labor and capital are based on changing weights w hich are averages o f the shares in the cu rren t and preceding year (the T orn q u ist index-num ber form ula). Additional sources of information D escriptions of m ethodology underlying the m easurem ent of o utput per h o u r and m ultifactor productivity are found in the b l s H a n d b o o k o f M e th o d s , Bulletin 2285 (B ureau of L abor Statistics, 1988). H istorical data for selected industries are provided in the H a n d b o o k o f L a b o r S ta tis tic s , B ulletin 2217 (B ureau of L abor Statistics, 1985). INTERNATIONAL COMPARISONS (Tables 45-47) L abor fo rce and u nem p loym en t Description of the series Tables 45 and 46 present com parative m easures of the labor force, em ploym ent, and unem ploym ent— approxim ating U.S. concepts— for th e U nited States, C anada, A ustralia, Japan, and six E uropean countries. T he unem ploym ent statistics (and, to a lesser extent, em ploym ent statistics) published by oth er industrial countries are not, in m ost cases, com parable to U.S. unem ploym ent statistics. T herefore, th e B ureau adju sts the figures for selected countries, w here necessary, for all know n m ajo r definitional differences. A lthough precise com para bility m ay not be achieved, these ad justed figures provide a b etter basis for international com parisons th an the figures regularly published by each country. Definitions F o r the principal U.S. definitions o f the l a b o r f o r c e , e m p l o y m see th e N otes section on E M P L O Y M E N T H ousehold Survey D ata. u n e m p lo y m e n t, e n t, and DATA: Notes on the data T he adju sted statistics have been adapted to the age at which com pulsory schooling ends in each country, ra th e r th an to the U.S. 64 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis stan d ard of 16 years of age and over. T herefore, the adjusted statistics relate to the population age 16 and over in F rance, Sweden, and from 1973 onw ard, the U nited K ingdom ; 15 and over in C anada, A ustralia, Japan, G erm any, the N etherlands, and prior to 1973, the U nited K ingdom ; and 14 and over in Italy. T he institutional population is included in the denom inator of the labor force participation rates and em ploym ent-population ratios for Japan and G erm any; it is excluded for the U nited States and the other countries. In the U.S. labor force survey, persons on layoff who are aw aiting recall to th eir job are classified as unem ployed. E uropean and Japanese layoff practices are quite different in n atu re from those in the U nited States; therefore, strict application of the U.S. definition has not been m ade on this point. F o r fu rth er inform ation, see M o n th ly L a b o r R ev ie w , D ecem ber 1981, pp. 8 -1 1 . T he figures for one or m ore recent years for France, G erm any, Italy, the N etherlands, and the U nited K ingdom are calculated using ad justm ent factors based on labor force surveys for earlier years and are considered prelim inary. T he recent-year m easures for these countries are, therefore, subject to revision whenever d ata from m ore cu rren t labor force surveys becom e available. T here are breaks in the date series for G erm any (1983), Italy (1986), the N etherlands (1983), and Sweden (1987). F o r both G erm any and the N etherlands, the breaks reflect the replacem ent o f labor force survey results tabulated by the national statistical offices with those tabulated by the E uropean C om m unity Statistical Office ( e u r o s t a t ) . T he D utch figures for 1983 onw ard also reflect the replacem ent of m an-year em ploym ent d ata w ith d ata from the D u tch Survey of Em ployed Persons. T he im pact o f the changes was to lower the adjusted unem ploym ent rate by 0.3 percentage point for G erm any and by about 2 percentage points for the N etherlands. F o r Italy, th e break in series reflects m ore accurate enum eration of tim e o f last jo b search. T his resulted in a significant increase in the n um ber o f people reported as seeking w ork in the past 30 days. The im pact was to increase the Italian unem ploym ent rates approxim ating U.S. concepts by about 1 percentage point. Sweden introduced a new questionnaire. Q uestions regarding current availability were added and the period o f active workseeking was reduced from 60 days to 4 weeks. These changes resulted in lowering Sw eden’s unem ploym ent rate by 0.5 percentage point. Additional sources of information F o r fu rth er inform ation, see I n te r n a tio n a l C o m p a r is o n s o f U n e m p lo y m e n t, Bulletin 1979 (B ureau o f L abor Statistics, 1978), A ppendix B, and unpublished Supplem ents to A ppendix B, available on request. The statistics are also analyzed periodically in the M o n th ly L a b o r R ev ie w . T he latest article appears in the A pril 1988 R e v ie w . A dditional historical data, generally beginning with 1959, are published in the H a n d b o o k o f L a b o r S ta tis tic s and are available in unpublished statistical supplem ents to B ulletin 1979. M an u factu rin g p ro d u ctiv ity and labor c o sts Description of the series Table 47 presents com parative m easures o f m anufacturing labor productivity, h ourly com pensation costs, and unit labor costs for the U nited States, C anada, Japan, and nine E uropean countries. These m easures are lim ited to trend com parisons— th at is, in tercountry series o f changes over tim e— ra th e r th an level com parisons because reliable intern atio n al com parisons o f the levels of m anufacturing o u tput are unavailable. Definitions O u t p u t is constant value o u tp u t (value added), generally taken from th e national accounts o f each country. W hile the national accounting m ethods for m easuring real o u tp u t differ considerably am ong the 12 countries, th e use of different procedures does not, in itself, connote lack o f com parability— rather, it reflects differences am ong countries in the availability and reliability o f underlying d ata series. H o u r s refer to all em ployed persons including the self-em ployed in the U nited States and Canada; to all wage and salary em ployees in the oth er countries. T he U.S. hours m easure is hours paid; the hours m easures for the o ther countries are hours worked. C o m p e n s a t i o n ( l a b o r c o s t ) includes all paym ents in cash o r kind m ade directly to em ployees plus em ployer expenditures for legally required insurance program s and contractual and private benefit plans. In addition, for som e countries, com pensation is adju sted for other significant taxes on payrolls or em ploym ent (or reduced to reflect subsidies), even if they are not for the direct benefit of workers, because such taxes are regarded as labor costs. How ever, com pensation does not include all item s of labor cost. T he costs of recruitm ent, employee training, and plant facilities and services— such as cafeterias and m edical clinics— are not covered because d ata are not available for m ost countries. Self-em ployed w orkers are included in the U.S. and C anadian com pensation figures by assum ing th at their hourly com pensation is equal to the average for wage and salary employees. Notes on the data F o r m ost of the countries, the m easures refer to total m anufacturing as defined by the International S tandard Industrial Classification. H ow ever, the m easures for F rance (beginning 1959), Italy (beginning 1970), and the U nited K ingdom (beginning 1971), refer to m an u factu r ing and m ining less energy-related products and the figures for the N etherlands exclude petroleum refining from 1969 to 1976. F o r all c o u n tries, m a n u fa ctu rin g includes th e activities o f g o v ern m en t enterprises. T he figures for one or m ore recent years are generally based on cu rrent indicators o f m anufacturing output, em ploym ent, hours, and hourly com pensation and are considered prelim inary until the national accounts and oth er statistics used for the long-term m easures becom e available. Additional sources of information F o r additional inform ation, see the b l s H a n d b o o k o f M e th o d s, Bulletin 2285 (B ureau o f L abor Statistics, 1988), and periodic M o n th ly L a b o r R e v ie w articles. H istorical d ata are provided in th e H a n d b o o k o f L a b o r S ta tis tic s , B ulletin 2217 (B ureau o f L abor Statistics, 1985). The statistics are issued twice per year— in a news release (generally in M ay) and in a M o n th ly L a b o r R e v ie w article. OCCUPATIONAL INJURY AND ILLNESS DATA (Table 48) Description of the series represent all private industries in the States and territories. T he sam ple T he A n n u al Survey o f O ccupational Injuries and Illnesses is designed to collect d ata on injuries and illnesses based on records which em ployers in th e follow ing industries m aintain u n der the O ccupational Safety and H ealth A ct o f 1970: agriculture, forestry, and fishing; oil and gas extraction; construction; m anufacturing; tran sp o rtatio n and public utilities; w holesale and retail trade; finance, insurance, and real estate; and services. E xcluded from the survey are self-em ployed individuals, farm ers w ith fewer th an 11 employees, em ployers regulated by o ther Federal safety and health laws, and Federal, State, and local govern m en t agencies. B ecause the survey is a Federal-State cooperative program and the d ata m ust m eet the needs of participating State agencies, an indepen dent sam ple is selected for each State. T he sam ple is selected to size for the survey is dependent upon (1) the characteristics for which https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis estim ates are needed; (2) the industries for which estim ates are desired; (3) the characteristics o f the population being sam pled; (4) th e target reliability of the estim ates; and (5) the survey design employed. W hile there are m any characteristics upon w hich the sam ple design could be based, the total recorded case incidence rate is used because it is one o f the m ost im p o rtan t characteristics and the least variable; therefore, it requires the sm allest sam ple size. T he survey is based on stratified random sam pling w ith a N eym an allocation and a ratio estim ator. T he characteristics used to stratify the establishm ents are the S tandard Industrial Classification (sic ) code and size o f em ploym ent. 65 M O N T H L Y LA BO R R E V IE W February 1989 • Definitions R e c o r d a b l e o c c u p a t i o n a l i n j u r i e s a n d i l l n e s s e s are: ( 1 ) occupational deaths, regardless o f the tim e between in jury and death, o r the length o f th e illness; o r (2) nonfatal occupational illnesses; o r (3) nonfatal occupational injuries w hich involve one or m ore o f the following: loss o f consciousness, restriction of w ork or m otion, transfer to an o th er job, o r m edical treatm en t (o ther th an first aid). O c c u p a t i o n a l i n j u r y is any in ju ry such as a cut, fracture, sprain, am putation, and so forth, which results from a w ork accident or from exposure involving a single incident in the w ork environm ent. O c c u p a t i o n a l i l l n e s s is an abnorm al condition o r disorder, oth er than one resulting from an occupational injury, caused by exposure to environm ental factors associated w ith em ploym ent. It includes acute and chronic illnesses o r disease w hich m ay be caused by inhalation, absorption, ingestion, o r direct contact. L o s t w o r k d a y c a s e s are cases w hich involve days away from w ork, or days o f restricted w ork activity, or both. L o s t w o r k d a y c a s e s i n v o l v i n g r e s t r i c t e d w o r k a c t i v i t y are those cases w hich result in restricted w ork activity only. L o s t w o r k d a y s a w a y fro m w o r k are the num ber o f w orkdays (consecutive or not) on which the em ployee would have w orked but could not because o f occupational in jury or illness. L o s t w o r k d a y s — r e s t r i c t e d w o r k a c t i v i t y are the num ber o f w orkdays (consecutive o r not) on which, because o f in jury o r illness: (1) the em ployee was assigned to an o th er job on a tem porary basis; or (2) the em ployee w orked at a p erm anent job less than full tim e; o r (3) the em ployee w orked at a p erm anently assigned job but could not perform all duties norm ally connected w ith it. The num ber of days aw ay fro m w ork or days o f r e s t r ic t e d w ork does not include the day o f in ju ry o r onset o f illness or any days on which the em ployee w ould not have w orked even though able to work. I n c i d e n c e r a t e s represent the num ber of injuries a n d /o r illnesses or lost w orkdays per 100 full-tim e workers. a c tiv ity Current Labor Statistics those w here the em ployee would have w orked but could not and those in which work activity was restricted. E stim ates of the num ber o f cases and the num ber o f days lost are m ade for both categories. M ost o f the estim ates are in the form o f incidence rates, defined as the num ber of injuries and illnesses, or lost w orkdays, per 100 full-tim e employees. F o r this purpose, 200,000 em ployee hours represent 100 em ployee years (2,000 hours per em ployee). O nly a few of the available m easures are included in the H a n d b o o k o f L a b o r S ta tis tic s . Full detail is presented in the annual bulletin, O c c u p a tio n a l I n ju r ie s a n d I lln e ss e s in th e U n ite d S ta te s , b y I n d u s tr y . C om parable d ata for individual States are available from the b l s Office of Safety, H ealth, and W orking C onditions. M ining and railroad d ata are furnished to b l s by the M ine Safety and H ealth A dm inistration and the F ederal R ailroad A dm inistration, respectively. D ata from these organizations are included in b l s and State publications. F ederal em ployee experience is com piled and published by the O ccupational Safety and H ealth A dm inistration. D ata on State and local governm ent employees are collected by about h alf of the States and territories; these data are not com piled nationally. Additional sources of information T he Supplem entary D ata System provides detailed inform ation describing various factors associated w ith w ork-related injuries and illnesses. These d ata are obtained from inform ation reported by e m p lo y e r s to State w orkers’ com pensation agencies. T he W ork In ju ry R eport program exam ines selected types o f accidents throu g h an em ployee survey w hich focuses on the circum stances surrounding the injury. These d ata are not included in the H a n d b o o k o f L a b o r S ta tis tic s but are available from the b l s Office o f Safety, H ealth, and W orking C onditions. T he definitions o f occupational injuries and illnesses an d lost w orkdays are from R e c o r d k e e p in g R e q u ir e m e n ts u n d e r th e O c c u p a tio n a l S a f e ty a n d H e a lth A c t o f 1 9 7 0 . F o r additional data, see O c c u p a tio n a l I n ju r ie s a n d I lln e s s e s in th e U n ite d S ta te s , b y I n d u s tr y , Notes on the data E stim ates are m ade for industries and em ploym ent-size classes and for severity classification: fatalities, lost w orkday cases, and nonfatal cases w ithout lost w orkdays. Lost w orkday cases are separated into 66 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis annual B ureau o f L abor Statistics bulletin; b l s H a n d b o o k o f M e th o d s, Bulletin 2285 (B ureau o f L abor Statistics, 1988); H a n d b o o k o f L a b o r S ta tis tic s , Bulletin 2217 (B ureau o f L abor Statistics, 1985), pp. 4 1 1 -1 4 ; annual reports in the M o n th ly L a b o r R e v ie w ; and annual U.S. D epartm ent o f L abor press releases. 1. Labor market indicators 1988 1987 1986 Selected indicators 1987 1986 IV III II I IV II I III Employment data Employment status of the civilian noninstitutionalized population (household survey)' Labor force participation rate................................................... Employment-population ratio.................................................... Unemployment rate ................................................................. M en...................................................................................... 16 to 24 years .................................................................... 25 years and over............................................................... Women ................................................................................. 16 to 24 years .................................................................... 25 years and over............................................................... Unemployment rate, 15 weeks and over................................. 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 60.9 6.8 6.9 13.3 5.4 6.8 12.6 5.3 1.9 65.4 61.1 6.6 6.6 13.3 5.1 6.6 12.5 5.0 1.8 65.6 61.5 6.3 6.4 13.1 4.9 6.2 11.7 4.7 1.7 65.6 61.7 6.0 6.0 12.2 4.6 6.0 11.4 4.7 1.6 65.7 61.9 5.9 5.8 11.9 4.4 6.0 11.2 4.6 1.5 65.8 62.1 5.7 5.6 11.8 4.3 5.8 11.0 4.5 1.4 65.8 62.2 5.5 5.4 11.2 4.2 5.6 10.7 4.3 1.3 65.9 62.3 5.5 5.4 11.4 4.1 5.6 10.5 4.4 1.3 Total ......................................................................................... Private sector .......................................................................... Goods-producing...................................................................... Manufacturing ....................................................................... Service-producing .................................................................... 99,525 82,832 24,558 18,965 74,967 102,310 85,295 24,784 19,065 77,525 100,347 83,496 24,443 18,885 75,904 101,024 84,130 24,523 18,895 76,500 101,841 84,869 24,644 18,965 77,196 102,669 85,643 24,847 19,112 77,782 103,683 86,518 25,116 19,290 78,567 104,670 87,406 25,260 19,388 79,410 105,609 88,263 25,498 19,498 80,111 106,478 89,063 25,648 19,567 80,830 Average hours: Private sector .......................................................................... Manufacturing ..................................................................... Overtime............................................................................ 34.8 40.7 3.4 34.8 41.0 3.7 34.7 40.8 3.5 34.8 41.0 3.6 34.7 40.9 3.7 34.7 40.9 3.8 34.8 41.1 3.9 34.7 41.0 3.8 34.8 41.1 3.9 34.7 41.1 3.9 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 workers........................................ 3.6 3.2 3.1 3.2 5.2 3.6 3.3 3.1 3.7 4.4 .6 .6 .5 .6 .8 .9 1.0 .5 1.3 .8 .7 .7 .7 .7 .3 1.2 1.0 .8 1.0 2.3 .8 .7 1.0 .5 .9 1.4 1.5 1.8 1.3 1.3 1.1 1.2 1.1 1.4 .3 1.3 1.0 .6 1.2 2.7 Workers by bargaining status (private industry): Union..................................................................................... Nonunion ....................... ....................................................... 2.1 3.6 2.8 3.6 .3 .7 .5 1.1 .5 .7 .6 1.1 1.1 .6 1.6 1.5 1.0 1.3 .7 1.1 Employment, nonagricultural (payroll data), in thousands:' Employment Cost Index ' Quarterly data seasonally adjusted. 2 Goods-producing industries include mining, construction, and manufacturing. Service- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis producing industries include all other private sector industries. 67 M O N T H L Y LA BO R R E V IE W 2. February 1989 Current Labor Statistics: • Comparative Indicators Annual and quarterly percent changes in compensation, prices, and productivity Compensation data 1986 1988 1987 1986 Selected measures 1987 I IV III II I IV III II 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 0.6 .6 0.9 1.0 0.7 .7 1.2 1.0 0.8 .7 1.4 1.5 1.1 1.2 1.3 1.0 3.5 3.1 3.5 3.3 .6 .5 1.0 1.0 .5 .7 1.3 1.0 .7 .6 1.0 1.0 .9 1.1 1.3 1.0 Price data1 Consumer Price Index (All urban consumers): All items..... 1.1 4.4 .3 1.4 1.2 1.3 .3 1.0 1.3 1.5 Producer Price Index: Finished goods............................................................... Finished consumer goods.............................................. Capital equipment .......................................................... Intermediate materials, supplies, components .................. Crude materials............................................................... -2.3 -3.5 2.1 -4.4 -8.9 2.2 2.6 1.3 5.4 8.9 1.1 .8 2.1 -.3 .6 .8 .9 .1 1.3 4.2 1.2 1.6 .3 1.9 5.3 .2 .3 -.2 1.2 .6 .1 -.2 1.1 .9 -1.4 .5 .4 .7 1.1 -.3 1.3 1.4 .6 2.6 4.0 .8 1.0 .4 1.2 -1.3 Productivity data3 Output per hour of all persons: Business sector............................................................. Nonfarm business sector ............................................... Nonfinancial corporations 4 ............................................. .3 .0 -1.0 -.8 -.9 2.6 .8 .8 1.5 2.2 2.0 1.8 3.5 3.4 4.3 .6 .9 -.1 3.9 3.7 4.7 2.7 3.2 3.1 -3.4 -2.4 -1.6 1.5 1.9 -1.1 3 Annual rates of change are computed by comparing annual averages. Quarterly percent changes reflect annual rates of change in quarterly in dexes. The data are seasonally adjusted. 4 Output per hour of all employees. 1 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. Alternative measures of wage and compensation changes Four quarters ended- Quarterly average Average hourly compensation:1 All persons, business sector............................................................ All employees, nonfarm business sector.......................................... Employment Cost Index-compensation: Civilian nonfarm 2 ............................................................................ Private nonfarm ........................................................................... Union ........................................................................................ State and local governments......................................................... Employment Cost Index-wages and salaries: Civilian nonfarm2 ............................................................................ Private nonfarm ............................................................................ Union ........................................................................................ State and local governments ......................................................... Total effective wage adjustments3.......................................................... From current settlements................................................................ From prior settlements .................................................................... From cost-of-living provision............................................................ Negotiated wage adjustments from settlements:3 First-year adjustments ..................................................................... Annual rate over life of contract...................................................... Negotiated wage and benefit adjustments from settlements:4 First-year adjustment .............................................- ........................ Annual rate over life of contract...................................................... III II I 1988 IV III II III II I 3.6 3.4 4.6 4.5 6.2 6.4 3.7 3.5 4.8 4.2 6.1 5.6 3.8 3.7 3.9 3.7 4.2 4.1 4.5 4.4 4.8 4.6 5.2 4.9 .7 .7 .5 .7 .3 1.2 1.0 .6 1.1 2.3 .8 .7 1.1 .6 .9 1.4 1.5 1.6 1.5 1.3 1.1 1.2 1.0 1.3 .3 1.3 1.0 .7 1.1 2.7 3.3 3.0 1.9 3.4 4.7 3.4 3.3 2.0 3.7 4.2 3.6 3.3 2.8 3.6 4.4 4.1 3.9 3.9 4.0 4.9 4.6 4.5 4.3 4.5 5.0 4.7 4.5 4.b 4.5 5.4 .5 .7 .5 .8 .2 1.0 .2 .7 .2 1.3 1.0 .6 1.1 2.3 .9 .2 .6 .1 .7 .6 1.1 .5 .9 .8 .3 .3 .2 1.0 1.0 .4 1.0 .9 .4 .1 .3 .1 .9 1.1 .8 1.2 .3 .9 .3 .5 .1 1.3 1.0 .7 1.0 2.6 .8 .2 .4 .2 3.2 3.0 1.7 3.3 5.0 2.2 .3 1.6 .3 3.4 3.3 1.7 3.8 4.1 2.6 .4 1.7 .4 3.5 3.3 2.6 3.6 4.2 3.1 .7 1.8 .5 3.5 3.3 2.6 3.5 4.4 3.2 .8 1.8 .5 3.9 3.7 2.9 4.0 4.4 3.0 1.0 1.6 .5 3.9 3.7 2.9 3.9 4.7 2.8 .9 1.4 .5 2.6 2.9 2.1 2.0 2.4 1.8 2.1 2.3 2.6 2.2 2.7 2.9 1.5 2.0 2.0 2.2 2.2 2.1 2.4 2.2 2.4 2.0 2.5 2.2 4.1 3.9 2.5 2.1 3.4 2.4 1.8 1.8 3.3 2.4 3.4 3.3 1.8 2.1 2.7 2.6 3.0 2.6 3.1 2.5 3.0 2.3 3.2 2.5 ’ Seasonally adjusted. 2 Excludes Federal and household workers. 3 Limited to major collective bargaining units of 1,000 workers or more. The Digitized for68 FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis IV III II 1987 1988 1987 Components most recent data are preliminary. 4 Limited to major collective bargaining units of 5,000 workers or more. The most recent data are preliminary. 4. Employment status of the total population, by sex, monthly data seasonally adjusted (Numbers in thousands) Annual average 1987 1988 Dec. Employment status 1987 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. TOTAL Noninstitutional population 2 . Labor force2......................... Participation rate 3......... Total employed 2............... Employment-population ratio 4 .......................... Resident Armed Forces 1 . Civilian employed ............ Agriculture .................... Nonagricultural industries Unemployed...................... Unemployment rate 5 .... Not in labor force ................ 84,490 186,322 185,370 185,571 185,705 185,847 185,964 186,088 186,247 186,402 186,522 186,666 186,801 186,949 187,098 124,259 121,602 123,378 122,451 122,784 122,901 122,672 123,060 122,917 123,209 123,331 123,692 123,688 123,778 124,215 66.4 66.4 66.3 66.3 66.3 66.2 66.2 66.1 66.2 66.0 66.2 66.2 66.1 66.2 65.9 117,705 114,177 116,677 115,490 115,804 116,009 115,865 116,392 116,117 116,686 116,707 116,895 117,074 117,260 117,652 62.9 62.9 62.8 62.7 62.7 62.6 62.7 62.4 62.6 62.3 62.5 62.4 62.3 62.6 61.9 1,696 1,705 1,687 1,704 1,692 1,673 1,714 1,685 1,732 1,736 1,736 1,749 1,750 1,709 1,737 116,009 112,440 114,968 113,740 114,055 114,273 114,129 114,660 114,403 115,001 115,034 115,203 115,370 115,573 115,947 3,193 3,238 3,238 3,176 3,142 3,060 3,121 3,110 3,187 3,181 3,200 3,256 3,212 3,169 3,208 112,816 112,709 109,232 111,800 110,528 110,799 111,073 110,948 111,473 111,293 111,880 111,974 112,061 112,194 112,335 6,554 6,563 6,518 6,614 6,797 6,624 6,523 6,800 6,668 6,807 6,892 6,980 6,961 6,701 7,425 6.3 5.3 5.3 5.3 5.4 5.5 5.3 5.5 5.4 5.5 5.6 5.7 5.7 5.4 6.1 62,830 62,978 63,023 62,734 62,839 63,071 63,038 63,171 62,904 63,175 62,804 62,787 62,919 62,944 62,888 Men, 16 years and over Noninstitutional population \ 2 Labor force2....................... Participation rate 3...... Total employed 2............. Employment-population ratio 4 ....................... Resident Armed Forces ' Civilian employed ......... Unemployed.................... Unemployment rate 5 ... 88,476 67,784 76.6 63,684 89,404 68,474 76.6 64,820 88,924 68,058 76.5 64,281 89,033 68,219 76.6 64,420 89,099 68,289 76.6 64,587 89,168 68,194 76.5 64,417 89,225 68,462 76.7 64,866 89,287 68,409 76.6 64,672 89,367 68,436 76.6 64,894 89,445 68,461 76.5 64,941 89,504 68,685 76.7 64,931 89,577 68,604 76.6 65,015 89,637 68,569 76.5 64,976 89,716 68,686 76.6 65,074 89,792 68,638 76.4 65,055 72.0 1,577 62,107 4,101 6.1 72.5 1,547 63,273 3,655 5.3 72.3 1,589 62,692 3,777 5.5 72.4 1,588 62,832 3,799 5.6 72.5 1,577 63,010 3,702 5.4 72.2 1,573 62,844 3,777 5.5 72.7 1,569 63,297 3,596 5.3 72.4 1,553 63,119 3,737 5.5 72.6 1,523 63,371 3,542 5.2 72.6 1,512 63,429 3,520 5.1 72.5 1,529 63,402 3,754 5.5 72.6 1,540 63,475 3,589 5.2 72.5 1,526 63,450 3,593 5.2 72.5 1,542 63,532 3,612 5.3 72.5 1,534 63,521 3,583 5.2 96,013 53,818 56.1 50,494 96,918 54,904 56.6 51,858 96,446 54,393 56.4 51,209 96,538 54,565 56.5 51,384 96,606 54,612 56.5 51,422 96,679 54,478 56.3 51,448 96,739 54,598 56.4 51,526 96,801 54,508 56.3 51,445 96,880 54,773 56.5 51,792 96,957 54,870 56.6 51,766 97,018 55,007 56.7 51,964 97,089 55,084 56.7 52,059 97,164 55,209 56.8 52,284 97,234 55,529 57.1 52,578 97,306 55,621 57.2 52,650 \ 52.6 160 50,334 3,324 6.2 53.5 162 51,696 3,046 5.5 53.1 161 51,048 3,184 5.9 53.2 161 51,223 3,181 5.8 53.2 159 51,263 3,190 5.8 53.3 53.2 163 1£3 51,285 51,363 % 3,072 3,030 5.6 5.6 53.1 161 51,284 3,063 5.6 53.5 162 51,630 2,981 5.4 53.4 161 51,605 3,104 5.7 53.6 163 51,801 3,043 5.5 53.6 164 51,895 3,025 5.5 53.8 161 52,123 2,925 5.3 54.1 163 52,415 2,951 5.3 54.1 162 52,488 2,971 5.3 Women, 16 years and over Noninstitutional population 2 Labor force2......... .............. Participation rate 3....... Total employed2 ............... Employment-population ratio 4 ........................ Resident Armed Forces 1 Civilian employed .......... Unemployed..................... Unemployment rate 5 .... 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Total employed as a percent of the noninstitutional population. 5 Unemployment as a percent of the labor force (including the resident Armed Forces). 69 M O N T H L Y LA BO R R E V IE W February 1989 • Current Labor Statistics: Employment Data 5. Employment status of the civilian population, by sex, age, race and Hispanic origin, monthly data seasonally adjusted (Numbers in thousands) Annual average 1987 1987 Dec. 1988 Employment status 1988 Jan. Feb. Mar. Apr. May June 184,111 120,936 65.7 114,129 184,232 121,328 65.9 114,660 184,374 121,203 65.7 114,403 184,562 121,524 65.8 115,001 July Aug. Sept. Oct. Nov. Dec. TOTAL Civilian noninstitutional population'................................ Civilian labor force..................... Participation rate ............... Employed ............................. Employment-population ratio2 ................................ Unemployed........................... Unemployment rate............ Not in labor force .................... 182,753 184,613 183,620 119,865 121,669 120,701 65.6 65.9 65.7 112,440 114,968 113,740 183,822 183,962 121,035 121,168 65.8 65.2 114,055 114,273 184,729 184,830 184,962 185,114 185,244 185,402 121,658 122,000 121,984 122,091 122,51C 122,563 65.9 66.C 66.C 66.C 66.1 66.1 115,034 115,203 115,370 115,573 115,947 116,009 61.5 7,425 6.2 62,888 62.3 6,701 5.5 62,944 61.9 6,961 5.8 62,919 62.0 6,980 5.8 62,787 62.1 6,892 5.7 62,804 62.0 6,807 5.6 63,175 62.2 6,668 5.5 62,904 62.0 6,800 5.6 63,171 62.3 6,523 5.4 63,038 62.3 6,624 5.4 63,071 62.3 6,797 5.6 62,830 62.4 6,614 5.4 62,978 62.4 6,518 5.3 63,023 62.6 6,563 5.4 62,734 5.3 62,839 79,565 62,095 78.0 58,726 80,553 62,768 77.9 59,781 80,002 62,281 77.8 59,220 80,120 62,421 77.9 59,315 80,203 62,614 78.1 59,561 80,260 62,532 77.9 59,468 80,326 62,774 78.1 59,833 80,402 62,721 78.0 59,656 80,526 62,669 77.8 59,780 80,608 62,729 77.8 59,897 80,669 62,916 78.0 59,839 80,751 62,884 77.9 59,979 80,851 62,915 77.8 60,004 80,924 62,995 77.8 59,999 81,001 63,002 77.8 60,049 73.8 2,329 56,397 3,369 5.4 74.2 2,271 57,510 2,987 4.8 74.0 2,290 56,930 3,061 4.9 74.0 2,302 57,013 3,106 5.0 74.3 2,279 57,282 3,053 4.9 74.1 2,258 57,210 3,064 4.9 74.5 2,259 57,574 2,941 4.7 74.2 2,238 57,418 3,065 4.9 74.2 2,231 57,549 2,889 4.6 74.3 2,252 57,645 2,832 4.5 74.2 2,273 57,566 3,077 4.9 74.3 2,249 57,730 2,905 4.6 74.2 2,315 57,689 2,911 4.6 74.1 2,313 57,686 2,996 4.8 74.1 2,292 57,757 2,953 4.7 88,583 49,783 56.2 47,074 89,532 50,870 56.8 48,383 89,010 50,327 56.5 47,722 89,110 50,462 56.6 47,894 89,178 50,530 56.7 47,934 89,261 50,510 56.6 48,060 89,307 50,591 56.6 48,120 89,382 50,532 56.5 48,040 89,502 50,690 56.6 48,205 89,588 50,807 56.7 48,242 89,670 50,959 56.8 48,492 89,735 50,991 56.8 48,535 89,807 51,201 57.0 48,788 89,887 51,558 57.4 49,113 89,954 51,587 57.3 49,165 53.1 622 46,453 2,709 5.4 54.0 625 47,757 2,487 4.9 53.6 640 47,082 2,605 5.2 53.7 639 47,255 2,568 5.1 53.8 638 47,296 2,596 5.1 53.8 641 47,419 2,450 4.9 53.9 653 47,467 2,471 4.9 53.7 604 47,436 2,492 4.9 53.9 626 47,579 2,485 4.9 53.8 549 47,693 2,565 5.0 54.1 609 47,883 2,467 4.8 54.1 638 47,897 2,456 4.8 54.3 640 48,148 2,413 4.7 54.6 640 48,473 2,445 4.7 54.7 646 48,519 2,422 4.7 14,606 7,988 54.7 6,640 14,527 8,031 55.3 6,805 14,609 8,093 55.4 6,798 14,592 8,152 55.9 6,846 14,588 8,021 55.0 6,778 14,591 7,894 54.1 6,601 14,598 7,963 54.5 6,707 14,590 7,950 54.5 6,707 14,534 8,165 56.2 7,016 14,533 8,122 55.9 6,895 14,491 8,125 56.1 6,872 14,477 8,109 56.0 6,856 14,456 7,975 55.2 6,781 14,433 7,957 55.1 6,835 14,447 7,974 55.2 6,795 45.5 258 6,382 1,347 16.9 46.8 273 6,532 1,226 15.3 46.5 282 6,516 1,295 16.0 46.9 315 6,531 1,306 16.0 46.5 283 6,495 1,243 15.5 45.2 282 6,319 1,293 16.4 45.9 275 6,432 1,256 15.8 46.0 268 6,439 1,243 15.6 48.3 264 6,752 1,149 14.1 47.4 259 6,636 1,227 15.1 47.4 260 6,612 1,253 15.4 47.4 289 6,567 1,253 15.5 46.9 283 6,498 1,194 15.0 47.4 285 6,550 1,122 14.1 47.0 255 6,540 1,179 14.8 62.6 Men, 20 years and over Civilian noninstitutional population1................................ Civilian labor force..................... Participation rate ................ Employed ................................ Employment-population ratio2 ................................ Agriculture ............................ Nonagricultural industries....... Unemployed............................ Unemployment rate............. Women, 20 years ond over Civilian noninstitutional population1................................. Civilian labor force..................... Participation rate ................ Employed ................................ Employment-population ratio2 ................................. Agriculture............................ Nonagricultural industries....... Unemployed........................... Unemployment rate............. Both sexes, 16 to 19 years Civilian noninstitutional population1................................ Civilian labor force..................... Participation rate ................ Employed ................................ Employment-population ratio2 ................................. Agriculture ............................ Nonagricultural industries....... Unemployed........................... Unemployment rate............. White Civilian noninstitutional population1................................. Civilian labor force..................... Participation rate ................ Employed ............................... Employment-population ratio2 ................................ Unemployed......................... Unemployment rate............. 156,958 158,194 157,552 157,676 157,773 157,868 157,943 158,034 158,166 158,279 158,340 158,422 158,524 158,603 158,705 103,290 104,756 103,907 104,188 104,404 104,172 104,517 104,433 104,716 104,651 105,013 105,036 105,051 105,395 105,411 65.8 66.2 66.0 66.1 66.2 66.0 66.2 66.1 66.2 66.1 66.3 66.3 66.3 66.5 66.4 97,789 99,812 98,787 99,011 99,350 99,252 99,663 99,508 99,902 99,761 99,907 100,058 100,199 100,543 100,567 62.3 5,501 5.3 63.1 4,944 4.7 62.7 5,120 4.9 62.8 5,177 5.0 63.0 5,054 4.8 62.9 4,920 4.7 63.1 4,854 4.6 63.0 4,925 4.7 63.2 4,814 4.6 63.0 4,890 4.7 63.1 5,106 4.9 63.2 4,978 4.7 63.2 4,852 4.6 63.4 4,852 4.6 63.4 4,844 4.6 20,352 12,993 63.8 11,309 20,692 13,205 63.8 11,658 20,508 13,181 64.3 11,560 20,539 13,174 64.1 11,570 20,569 13,138 63.9 11,504 20,596 13,100 63.6 11,461 20,622 13,101 63.5 11,534 20,650 13,102 63.4 11,514 20,683 13,066 63.2 11,543 20,715 13,283 64.1 11,761 20,736 13,236 63.8 11,733 20,762 13,201 63.6 11,758 20,786 13,290 63.9 11,807 20,811 13,330 64.1 11,831 20,842 13,405 64.3 11,856 55.6 1,684 13.0 56.3 1,547 11.7 56.4 1,621 12.3 56.3 1,604 12.2 55.9 1,634 12.4 55.6 1,639 12.5 55.9 1,567 12.0 55.8 1,588 12.1 55.8 1,523 11.7 56.8 1,522 11.5 56.6 1,503 11.4 56.6 1,443 10.9 56.8 1,483 11.2 56.8 1,499 11.2 56.9 1,549 11.6 Black Civilian noninstitutional population1................................. Civilian labor force..................... Participation rate ................ Employed .............................. Employment-population ratio2 ................................. Unemployed........................... Unemployment rate............. See footnotes at end of table. Digitized for70 FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5. Continued— Employment status of the civilian population, by sex, age, race and Hispanic origin, monthly data seasonally adjusted (Numbers in thousands) 1988 Annual average 1987 1987 1988 Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 12,867 8,541 66.4 7,790 13,325 8,982 67.4 8,250 13,082 8,770 67.0 8,045 13,115 8,862 67.6 8,199 13,153 8,987 68.3 8,241 13,192 8,818 66.8 8,088 13,230 8,823 66.7 8,030 13,268 8,910 67.2 8,128 13,306 9,009 67.7 8,222 13,344 8,997 67.4 8,265 13,381 8,963 67.0 8,214 13,419 9,061 67.5 8,378 13,458 9,075 67.4 8,368 13,495 9,148 67.8 8,419 13,533 9,133 67.5 8,441 60.5 751 8.8 61.9 732 8.2 61.5 725 8.3 62.5 663 7.5 62.7 746 8.3 61.3 730 8.3 60.7 793 9.0 61.3 782 8.8 61.8 787 8.7 61.9 732 8.1 61.4 749 8.4 62.4 683 7.5 62.2 707 7.8 62.4 729 8.0 62.4 692 7.6 Employment status Hispanic origin Civilian noninstitutional population1................................. Civilian labor force...................... Participation rate ................ Employed ................................ Employment-population ratio2 ................................. Unemployed............................ Unemployment rate............. 1 The population figures are not seasonally adjusted. 2 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. 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) Annual average 1987 1987 1988 Dec. 114,968 63,273 51,696 40,472 113,740 62,692 51,048 40,616 28,756 6,211 28,299 6,181 28,435 6,153 1,632 1,423 153 1,621 1,398 150 1,589 1,461 155 1,629 1,427 143 100,771 16,800 83,970 1,208 82,762 8,201 260 103,021 17,114 85,907 1,153 84,754 8,519 260 5,401 2,385 2,672 14,395 5,206 2,350 2,487 14,963 5,246 2,265 2,617 14,690 5,355 2,351 2,630 14,580 5,369 2,408 2,591 14,619 5,331 2,448 2,548 14,654 5,212 2,264 2,519 14,949 4,878 2,267 2,353 14,813 5,302 2,346 2,586 14,612 5,341 2,471 2,538 15,026 5,192 2,315 2,473 14,999 5,097 2,266 2,389 15,270 4,963 2,220 2,399 15,161 5,061 2,279 2,375 15,446 5,321 2,549 2,410 15,363 5,122 2,201 2,587 13,928 4,965 2,199 2,408 14,509 4,979 2,099 2,518 14,205 5,113 2,212 2,554 14,115 5,101 2,258 2,477 14,172 5,087 2,265 2,482 14,203 4,953 2,131 2,426 14,441 4,676 2,136 2,276 14,376 5,073 2,183 2,504 14,180 5,102 2,334 2,493 14,606 4,972 2,171 2,408 14,564 4,862 2,102 2,317 14,819 4,727 2,095 2,319 14,679 4,819 2,116 2,288 14,986 5,033 2,377 2,307 14,928 1988 Selected categories Jan. Feb. Mar. Apr. May June July Aug. 114,129 62,844 51,285 40,486 114,660 63,297 51,363 40,494 114,403 63,119 51,284 40,317 115,001 63,371 51,630 40,493 115,034 63,429 51,605 40,518 115,203 63,402 51,801 40,511 28,620 6,151 28,713 6,158 28,772 6,091 28,632 6,000 28,678 6,130 28,669 6,170 28,809 6,280 28,836 6,253 28,890 6,344 28,995 6,375 29,053 6,399 1,640 1,410 123 1,610 1,416 146 1,632 1,390 152 1,574 1,365 155 1,583 1,375 161 1,572 1,362 149 1,607 1,411 158 1,612 1,421 137 1,661 1,405 177 1,672 1,450 125 1,698 1,349 149 102,339 102,562 102,145 16,952 17,012 16,946 85,387 85,550 85,199 1,167 1,114 1,152 84,220 84,436 84,047 8,395 8,567 8,816 250 272 301 102,953 17,049 85,904 1,146 84,758 8,536 297 Sept. Oct. Nov. Dec. CHARACTERISTIC Civilian employed, 16 years and over......................................... 112,440 Men ....................................... 62,107 Women ................................. 50,334 Married men, spouse present .. 40,265 Married women, spouse present................................ 28,107 Women who maintain families . 6,060 114,055 114,273 62,832 63,010 51,223 51,263 40,438 40,488 115,370 115,573 115,947 63,475 63,450 63,532 51,895 52,123 52,415 40,513 40,504 40,407 116,009 63,521 52,488 40,483 MAJOR INDUSTRY AND CLASS OF WORKER Agriculture: Wage and salary workers ....... Self-employed workers........... Unpaid family workers ............ Nonagricultural industries: Wage and salary workers ....... Government ........................ Private industries................. Private households............ Other ................................ Self-employed workers........... Unpaid family workers............ 101,922 102,413 102,498 17,021 17,080 16,961 84,901 85,333 85,537 1,172 1,146 1,167 83,729 84,187 84,370 8,306 8,246 8,338 250 241 232 103,189 103,207 103,501 103,733 103,770 103,904 17,031 17,111 17,145 17,240 17,387 17,423 86,158 86,096 86,356 86,493 86,383 86,481 1,132 1,128 1,119 1,152 1,209 1,210 85,026 84,968 85,237 85,341 85,174 85,271 8,531 8,508 8,570 8,479 8,619 8,602 251 241 230 232 300 266 PERSONS AT WORK PART TIME1 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 time ................... 1 Excludes persons “with a job but not at work” during the survey period for such reasons as vacation, illness, or industrial disputes. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 71 M O N T H L Y LA BO R R EV IEW 7. February 1989 • Current Labor Statistics: Employment Data Selected unemployment indicators, monthly data seasonally adjusted (Unemployment rates) Annual average 1987 1988 Selected categories 1987 1988 Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Total, all civilian workers...................................... Both sexes, 16 to 19 years............................. Men, 20 years and over ................................. Women, 20 years and over............................. 6.2 16.9 5.4 5.4 5.5 15.3 4.8 4.9 5.8 16.0 4.9 5.2 5.8 16.0 5.0 5.1 5.7 15.5 4.9 5.1 5.6 16.4 4.9 4.9 5.5 15.8 4.7 4.9 5.6 15.6 4.9 4.9 5.4 14.1 4.6 4.9 5.4 15.1 4.5 5.0 5.6 15.4 4.9 4.8 5.4 15.5 4.6 4.8 5.3 15.0 4.6 4.7 5.4 14.1 4.8 4.7 5.3 14.8 4.7 4.7 White, total .................................................... Both sexes, 16 to 19 years.......................... Men, 16 to 19 years ................................ Women, 16 to 19 years........................... Men, 20 years and over ............................... Women, 20 years and over........................... 5.3 14.4 15.5 13.4 4.8 4.6 4.7 13.1 13.9 12.3 4.1 4.1 4.9 13.5 14.8 12.0 4.3 4.4 5.0 13.9 14.5 13.3 4.4 4.2 4.8 12.5 12.5 12.6 4.2 4.4 4.7 14.1 15.5 12.6 4.2 3.9 4.6 13.9 14.4 13.3 4.0 4.0 4.7 13.2 14.0 12.3 4.2 4.1 4.6 12.3 13.2 11.4 4.0 4.1 4.7 12.9 14.3 11.4 3.9 4.3 4.9 13.7 13.9 13.5 4.3 4.1 4.7 13.4 14.5 12.3 4.1 4.1 4.6 12.9 14.4 11.3 4.1 4.0 4.6 11.9 12.6 11.3 4.2 4.0 4.6 12.6 13.4 11.8 4.1 3.9 Black, total .................................................... Both sexes, 16 to 19 years........................... Men, 16 to 19 years ................................ Women, 16 to 19 years........................... Men, 20 years and over ............................... Women, 20 years and over........................... 13.0 34.7 34.4 34.9 11.1 11.6 11.7 32.4 32.7 32.0 10.1 10.4 12.3 33.9 34.3 33.6 10.4 10.9 12.2 34.2 34.6 33.7 10.2 11.0 12.4 36.8 39.9 33.8 10.9 10.5 12.5 35.8 37.8 33.9 11.0 10.8 12.0 30.8 27.9 33.9 10.4 10.9 12.1 33.9 33.2 34.8 10.4 10.6 11.7 30.6 31.5 29.6 9.9 10.6 11.5 31.7 31.2 32.4 9.6 10.3 11.4 32.1 32.1 32.0 9.7 10.0 10.9 31.9 31.9 31.9 9.1 9.7 11.2 30.9 32.8 28.6 9.6 9.8 11.2 31.1 32.1 29.9 9.8 9.8 11.6 29.6 29.8 29.3 10.0 10.5 Hispanic origin, total....................................... 8.8 8.2 8.3 7.5 8.3 8.3 9.0 8.8 8.7 8.1 8.4 7.5 7.8 8.0 7.6 Married men, spouse present.......................... Married women, spouse present..................... Women who maintain families......................... Full-time workers ............................................ Part-time workers ........................................... Unemployed 15 weeks and over..................... Labor force time lost' ..................................... 3.9 4.3 9.2 5.8 8.4 1.7 7.1 3.3 3.9 8.1 5.2 7.6 1.3 6.3 3.4 4.4 8.3 5.4 8.1 1.5 6.6 3.5 4.1 8.8 5.4 8.3 1.4 6.6 3.4 4.0 8.3 5.3 7.9 1.4 6.6 3.4 4.0 7.5 5.3 7.8 1.4 6.5 3.1 3.8 8.5 5.1 7.5 1.3 6.2 3.3 3.9 8.4 5.2 7.7 1.3 6.4 3.2 3.9 7.9 5.0 7.7 1.3 6.3 3.1 4.0 8.5 5.0 8.0 1.3 6.4 3.4 4.0 7.5 5.3 7.4 1.3 6.4 3.1 3.8 8.1 5.1 7.4 1.3 6.3 3.1 3.7 7.9 5.0 7.4 1.3 6.1 3.3 3.8 7.7 5.0 7.1 1.2 6.2 3.1 3.7 8.2 5.1 7.0 1.2 6.3 6.2 10.0 11.6 6.0 5.8 6.3 4.5 6.9 4.9 3.5 10.5 5.5 7.9 10.6 5.3 5.0 5.7 3.9 6.2 4.5 2.8 10.6 5.7 8.2 10.7 5.2 4.8 5.6 4.6 6.2 4.8 3.0 11.5 5.8 7.5 11.9 5.5 5.3 5.8 3.7 6.2 4.9 3.0 11.4 5.7 7.8 10.9 5.6 5.7 5.4 3.8 6.3 4.6 2.9 10.5 5.6 8.2 10.6 5.2 5.1 5.4 4.1 6.7 4.3 2.9 11.0 5.4 8.1 10.6 5.3 4.8 5.9 3.8 5.9 4.3 3.0 11.0 5.6 9.4 10.5 5.3 4.9 5.9 4.2 6.3 4.6 2.9 12.4 5.4 6.8 10.3 4.9 4.5 5.5 4.1 6.0 4.6 2.9 10.0 5.4 5.4 10.4 5.2 4.9 5.6 3.6 6.2 4.5 3.0 11.0 5.6 7.0 10.7 5.5 5.0 6.3 3.8 6.4 4.4 2.9 11.0 5.4 8.6 9.6 5.4 5.2 5.8 3.8 6.2 4.4 2.7 10.8 5.4 8.8 10.0 5.3 5.0 5.7 3.5 6.0 4.5 2.6 10.2 5.5 8.9 10.6 5.1 4.9 5.3 4.0 6.2 4.6 2.5 9.3 5.4 7.7 10.4 5.2 5.0 5.5 3.8 6.3 4.1 2.7 8.8 CHARACTERISTIC INDUSTRY Nonagricultural private wage and salary workers .... Mining............................................................ Construction ................................................... Manufacturing ................................................ Durable goods............................................. Nondurable goods ....................................... Transportation and public utilities .................... Wholesale and retail trade.............................. Finance and service industries........................ Government workers ........................................... Agricultural wage and salary workers ................... 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 8. Unemployment rates by sex and age, monthly data seasonally adjusted (Civilian workers) Annual average Sex and age 1987 1988 1987 1988 Jan. Dec. Apr. Mar. Feb. June May Aug. July Oct. Sept. Nov. Dec. 5.4 10.9 15.1 17.5 13.1 8.5 4.2 4.4 3.1 5.6 11.0 15.4 18.5 13.7 8.4 4.4 4.5 3.2 5.4 10.9 15.5 19.6 12.8 8.4 4.2 4.4 2.9 5.3 10.9 15.0 17.2 13.3 8.6 4.1 4.3 2.8 5.4 10.6 14.1 15.8 12.9 8.7 4.2 4.4 2.8 5.3 10.9 14.8 16.6 13.3 8.7 4.1 4.3 3.0 Total, 16 years and over ............................................................ 16 to 24 years......................................................................... 16 to 19 years ...................................................................... 16 to 17 years .................................................................... 18 to 19 years .................................................................... 20 to 24 years ...................................................................... 25 years and over.................................................................... 25 to 54 years .................................................................... 55 years and over............................................................... 6.2 12.2 16.9 19.1 15.2 9.7 4.8 5.0 3.3 5.5 11.0 15.3 17.4 13.8 8.7 4.3 4.5 3.1 5.8 11.2 16.0 17.6 14.6 8.6 4.5 4.8 3.1 5.8 11.6 16.0 18.5 14.5 9.1 4.5 4.6 3.4 5.7 11.1 15.5 17.7 14.1 8.7 4.4 4.7 3.2 5.6 11.6 16.4 17.7 15.3 9.0 4.2 4.5 2.9 5.5 11.2 15.8 17.7 14.1 8.7 4.2 4.4 3.0 5.6 11.2 15.6 16.7 14.8 8.8 4.3 4.5 3.3 5.4 10.5 14.1 15.9 13.3 8.5 4.2 4.4 3.0 Men, 16 years and over......................................................... 16 to 24 years .................................................................... 16 to 19 years.................................................................. 16 to 17 years............................................................... 18 to 19 years............................................................... 20 to 24 years.................................................................. 25 years and over............................................................... 25 to 54 years............................................................... 55 years and over.......................................................... 6.2 12.6 17.8 20.2 16.0 9.9 4.8 5.0 3.5 5.5 11.4 16.0 18.2 14.6 8.9 4.2 4.4 3.3 5.7 11.7 17.1 18.7 15.4 8.8 4.4 4.6 3.1 5.7 12.2 16.5 19.2 15.1 9.8 4.3 4.5 3.8 5.5 11.4 15.8 17.6 14.9 9.0 4.3 4.5 3.4 5.7 11.9 17.4 18.6 16.6 9.0 4.3 4.5 3.4 5.4 11.2 15.9 17.6 14.7 8.7 4.1 4.3 3.2 5.6 11.5 16.3 17.4 15.3 8.9 4.3 4.4 3.5 5.3 11.0 15.4 17.5 14.3 8.5 4.1 4.2 3.2 5.3 11.3 16.3 18.1 14.4 8.5 4.0 4.2 3.2 5.6 11.4 16.0 17.7 14.5 8.9 4.4 4.5 3.4 5.4 11.3 16.4 20.8 13.5 8.5 4.1 4.3 2.9 5.4 11.8 16.5 18.5 15.0 9.2 4.0 4.2 3.0 5.4 10.9 14.8 17.3 13.0 8.8 4.2 4.4 3.2 5.3 11.1 15.4 17.3 13.5 8.7 4.1 4.3 3.3 Women, 16 years and over................................................... 16 to 24 years................................................................... 16 to 19 years ................................................................ 16 to 17 years .............................................................. 18 to 19 years .............................................................. 20 to 24 years ................................................................ 25 years and over.............................................................. 25 to 54 years .............................................................. 55 years and over......................................................... 6.2 11.7 15.9 18.0 14.3 9.4 4.8 5.1 3.0 5.6 10.6 14.4 16.6 12.9 8.5 4.3 4.6 2.8 5.9 10.7 14.8 16.3 13.8 8.4 4.6 5.0 3.1 5.8 11.0 15.6 17.7 13.9 8.4 4.6 4.9 2.9 5.9 10.9 15.1 17.7 13.3 8.5 4.6 4.9 3.0 5.6 11.2 15.2 16.7 14.0 9.0 4.1 4.5 2.4 5.6 11.1 15.6 17.7 13.5 8.6 4.3 4.6 2.8 5.6 10.9 15.0 16.0 14.2 8.6 4.4 4.6 3.1 5.5 10.0 12.6 14.1 12.1 8.6 4.3 4.6 2.8 5.7 10.5 13.8 16.8 11.6 8.6 4.4 4.7 2.9 5.5 10.4 14.8 19.2 12.8 8.0 4.3 4.6 2.8 5.5 10.5 14.5 18.2 12.0 8.2 4.3 4.5 2.9 5.3 9.9 13.3 15.8 11.6 ,7.9 4.2 4.5 2.4 5.3 10.3 13.3 14.1 12.8 8.6 4.2 4.4 2.4 5.4 10.7 14.2 15.8 13.1 8.7 4.1 4.4 2.6 9. Unemployed persons by reason for unemployment, monthly data seasonally adjusted (Numbers in thousands) 1988 1987 Annual average Reason for unemployment 1987 Job losers .......................................................... On layoff.......................................................... Other job losers................................................ Job leavers ......................................................... Reentrants ......................................................... New entrants ...................................................... 1988 Jan. Dec. Apr. Mar. Feb. June May July Sept. Aug. Nov. Oct. Dec. 3,085 853 2,232 923 1,883 799 3,112 880 2,232 986 1,843 800 3,079 833 2,246 985 1,767 761 2,951 844 2,107 984 1,747 747 3,031 814 2,217 963 1,766 799 3,066 819 2,247 998 1,725 799 3,566 943 2,623 965 1,974 920 3,092 851 2,241 983 1,809 816 3,192 863 2,329 946 1,963 900 3,181 872 2,309 1,046 1,907 870 3,182 877 2,305 969 1,916 855 3,131 882 2,249 1,059 1,792 871 2,968 844 2,124 985 1,804 886 3,201 806 2,395 942 1,804 811 3,070 861 2,209 953 1,747 800 48.0 12.7 35.3 13.0 26.6 12.4 46.1 12.7 33.4 14.7 27.0 12.2 45.6 12.3 33.3 13.5 28.0 12.9 45.4 12.5 33.0 14.9 27.2 12.4 46.0 12.7 33.3 14.0 27.7 12.4 45.7 12.9 32.8 15.5 26.1 12.7 44.7 12.7 32.0 14.8 27.2 13.3 47.4 11.9 35.4 13.9 26.7 12.0 46.7 13.1 33.6 14.5 26.6 12.2 46.1 12.8 33.4 13.8 28.1 11.9 46.2 13.1 33.1 14.6 27.3 11.9 46.7 12.6 34.1 14.9 26.8 11.5 45.9 13.1 32.8 15.3 27.2 11.6 46.2 12.4 33.8 14.7 26.9 12.2 46.5 12.4 34.1 15.1 26.2 12.1 3.0 .8 1.6 .8 2.5 .8 1.5 .7 2.6 .8 1.6 .7 2.6 .9 1.6 .7 2.6 .8 1.6 .7 2.6 .9 1.5 .7 2.4 .8 1.5 .7 2.6 .8 1.5 .7 2.5 .8 1.4 .7 2.5 .8 1.5 .7 2.6 .8 1.5 .7 2.5 .8 1.4 .6 2.4 .8 1.4 .6 2.5 .8 1.4 .7 2.5 .8 1.4 .7 PERCENT OF UNEMPLOYED Job losers......................................................... On layoff........................................................ Other job losers............................................. Job leavers....................................................... Reentrants........................................................ New entrants ................................................... PERCENT OF CIVILIAN LABOR FORCE Job losers .......................................................... Job leavers ......................................................... Reentrants ......................................................... New entrants ...................................................... 10. Duration of unemployment, monthly data seasonally adjusted (Numbers in thousands) Annual average 1988 1987 Weeks of unemployment May June July Aug. Sept. Oct. Nov. Dec. 1987 1988 Dec. Jan. Feb. Mar. Apr. 3,246 2,196 1,983 943 27 weeks and over ..................................... 1,040 3,084 2,007 1,610 801 809 3,225 1,981 1,781 881 900 3,118 2,214 1,728 838 890 3,097 2,093 1,732 842 890 3,057 2,060 1,693 851 842 3,093 1,969 1,582 756 826 3,072 2,068 1,614 789 825 3,093 1,910 1,543 749 794 2,985 2,041 1,619 826 793 3,158 1,956 1,636 831 805 3,116 1,896 1,568 775 793 3,059 1,835 1,554 788 766 3,117 1,935 1,502 787 715 3,029 2,039 1,495 758 737 14.5 6.5 13.5 5.9 14.2 5.9 14.2 6.3 14.1 6.3 13.8 6.4 13.5 5.8 13.8 5.9 13.2 5.9 13.5 6.2 13.5 5.9 13.5 5.7 13.4 5.7 12.6 5.6 12.8 5.8 Less than 5 weeks ....................................... Mean duration in weeks................................ Median duration in weeks.............................. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 73 M O N T H L Y LA B O R R E V IE W 11. February 1989 • Current Labor Statistics: Unemployment rates of civilian workers by State, data not seasonally adjusted Nov. 1987 Nov. 1988 California.................................................. 7.0 9.8 5.7 7.5 5.1 7.0 9.0 6.5 6.8 5.1 Florida ..................................................... 73 2.9 2.8 5.8 5.1 6.3 3.0 3.4 4.5 5.2 Indiana .................................................... 50 3.6 6.8 6.3 5.7 5.0 3.0 5.1 6.5 5.4 4.4 4.3 7.7 9.7 3.4 3.8 4.6 6.8 9.6 2.9 4.0 2.3 7.4 5.2 8.4 5.9 4.4 3.5 6.8 4.5 8.6 5.7 State Iowa........................................................ Kansas .................................................... Maine....................................................... Massachusetts ......................................... Michigan................................................... Minnesota ................................................ Mississippi................................................ NOTE: Some data in this table may differ from data published elsewhere because of the continual updating of the 12. Employment Data Nov. 1987 Nov. 1988 6.7 4.5 5.7 2.2 6.0 3.6 4.3 2.5 New Jersey ............................................. 3.2 8.2 4.9 4.0 4.5 3.5 6.4 4.3 3.6 5.2 Ohio ....................................................... 5.8 6.3 5.4 5.2 3.1 5.3 6.1 5.5 4.3 2.7 South Carolina........................................ South Dakota.......................................... Tennessee ............................................. 5.1 5.1 5.9 7.9 5.6 4.4 4.3 5.8 6.6 4.9 Vermont.................................................. 3.3 4.0 7.4 9.2 5.5 2.9 4.1 6.0 9.0 3.8 7.2 7.1 State Washington ............................................. West Virginia........................................... Wisconsin ............................................... database, Employment of workers on nonagricultural payrolls by State, data not seasonally adjusted (In thousands) State Arkansas .................................................. Delaware.................................................. District of Columbia.................................. Georgia ................................................... Illinois ...................................................... j. Louisiana.................................................. Minnesota................................................ Nov. 1987 Oct. 1988 1,524.0 206.5 1,417.2 851.4 11,906.4 1,538.6 212.3 1,421.7 872.0 12,264.1 1,407.4 1,665.3 327.9 659.4 4,980.7 1,404.3 1,681.8 336.0 676.4 5,113.8 2,803.0 468.1 341.9 4,965.1 2,361.3 2,813.8 469.8 357.0 5,077.1 2,445.6 1 137 5 1 020 4 1 341 6 1,503.6 515 1 1,163.6 1.031.4 1.372.4 1'513.3 533.1 2,045.9 3,092.2 3 777 5 2|004.6 883.9 2 219 3 277.1 2,072.4 3,152.0 3,809.0 2|067.6 895.7 2,242.6 280.3 Nov. 1988p Digitized for 74 FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Nov. 1987 Oct. 1988 Nov. 1988p Nebraska ................................................ Nevada ................................................... New Hampshire....................................... 670.3 512.1 522.6 675.9 544.0 547.6 681.2 546.5 547.3 New Jersey ............................................. New Mexico ............................................ 1,410.8 New York................................................ 1,696.0 North Carolina ........................................ 336.8 North Dakota .......................................... 679.3 5,174.4 Ohio ....................................................... Oklahoma............................................... 2,822.0 Oregon................................................... 474.0 Pennsylvania........................................... 355.3 Rhode Island........................................... 5,117.0 2,449.8] South Carolina........................................ South Dakota.......................................... 1,166.7 Tennessee ............................................. 1,040.1 Texas ..................................................... 1,373.0 Utah ....................................................... 1,514.8 533.8 Vermont.................................................. Virginia.................................................... 2,079.9 Washington ............................................. 3,165.8 West Virginia........................................... 3,848.3 Wisconsin............................................... 2,066.8 897.3 Wyoming................................................. 2,246.d Puerto Rico ............................................. 277.9 Virgin Islands .......................................... 3,649.6 537.0 8,200.3 2,924.7 255.6 3,718.0 550.4 8,306.6 2,996.3 262.0 3,726.8 554.1 8,351.3 3,010.2 259.7 4,674.2 1,108.7 1,121.4 5,016.3 460.0 4,770.6 1,110.8 1,175.2 5,115.1 463.2 4,845.1 1,107.1 1,176.8 5,123.1 463.5 1,418.0 257.3 2,058.7 6,575.2 650.7 1,458.3 263.2 2,078.5 6,658.6 670.6 1,460.0 261.1 2,076.8 6,676.7 675.6 249.5 2,733.7 1,883.0 608.4 2,126.2 257.9 2,841.2 1,974.6 612.3 2,192.1 258.0 2,857.1 1,973.0 622.9 2,192.7 178.4 777.5 39.8 179.7 805.9 39.2 178.5 809.3 39.9 1,545.7 207.4 1,429.0 872.1 12,327.2 = preliminary NOTE: Some data in this table may differ from data published elsewhere p State because of the continual updating of the database. 13. Employment of workers on nonagricultural payrolls by industry, monthly data seasonally adjusted (In thousands) Annual average 1988 1987 Industry 1987 TOTAL ...................................... 102,310 PRIVATE SECTOR ..................... 85,295 GOODS-PRODUCING ................... Mining ........................................... Oil and gas extraction ............... Construction ................................ General building contractors...... Manufacturing.............................. Production workers ................... Durable goods............................ Production workers ................... Lumber and wood products ........ Furniture and fixtures................. Stone, clay, and glass products ... Primary metal industries ............. Blast furnaces and basic steel products................................... Fabricated metal products.......... 1988P Dec. Jan. 106,037 104,001 104,262 88,648 86,794 87,044 Feb. Mar. Apr. May June July 104,729 105,020 105,281 105,489 106,057 106,271 87,475 87,700 87,973 88,139 88,678 88,941 Aug. Sept. Oct. Nov.p Dec.p 106,425 106,737 106,973 107,377 107,656 89,817 90,082 89,066 89,205 89,481 24,784 721 405 25,564 733 417 25,201 735 417 25,180 728 414 25,271 731 415 25,330 733 419 25,435 737 421 25,466 739 425 25,592 740 425 25,663 740 424 25,639 739 423 25,648 734 419 25,743 729 413 25,844 721 405 25,893 723 402 4,998 1,326 5,292 1,396 5,118 1,352 5,083 1,365 5,150 1,377 5,192 1,383 5,238 1,400 5,237 1,394 5,308 1,412 5,330 1,400 5,340 1,401 5,365 1,404 5,366 1,393 5,405 1,404 5,418 1,414 19,065 12,995 19,540 13,339 19,348 13,215 19,369 13,225 19,390 13,249 19,405 13,251 19,460 13,280 19,490 13,302 19,544 13,341 19,593 13,382 19,560 13,352 19,549 13,332 19,648 13,412 19,718 13,467 19,752 13,489 11,218 7,453 11,518 7,678 11,390 7,590 11,393 7,582 11,404 7,599 11,411 7,598 11,459 7,632 11,477 7,649 11,515 7,676 11,566 7,720 11,547 7,705 11,537 7,689 11,595 7,733 11,638 7,768 11,668 7,792 740 518 582 749 758 538 587 782 754 533 588 769 754 536 583 768 756 535 584 770 755 534 585 772 758 535 587 773 757 537 585 776 757 537 587 781 756 541 589 789 753 537 586 785 753 538 585 787 760 540 588 794 768 540 591 796 772 542 594 796 269 1,407 281 1,455 279 1,433 279 1,435 280 1,438 281 1,439 281 1,444 281 1,448 281 1,457 282 1,464 281 1,458 280 1,460 282 1,469 283 1,473 281 1,479 Machinery, except electrical........ Electrical and electronic equipment................................. Transportation equipment........... Motor vehicles and equipment .... Instruments and related products Miscellaneous manufacturing industries................................. 2,023 2,138 2,074 2,085 2,091 2,099 2,111 2,121 2,134 2,151 2,156 2,159 2,173 2,186 2,193 2,084 2,048 865 696 2,121 2,042 850 713 2,110 2,046 851 704 2,112 2,036 839 704 2,112 2,031 837 705 2,115 2,025 835 705 2,117 2,045 848 706 2,115 2,048 851 709 2,120 2,047 850 713 2,122 2,052 857 715 2,126 2,044 855 718 2,124 2,032 849 716 2,126 2,045 859 719 2,131 2,050 860 720 2,130 2,053 861 723 370 383 379 380 382 382 383 381 382 387 384 383 381 383 386 Nondurable goods...................... 7,847 5,543 8,022 5,661 7,958 5,625 7,976 5,643 7,986 5,650 7,994 5,653 8,001 5,648 8,013 5,653 8,029 5,665 8,027 5,662 8,013 5,647 8,012 5,643 8,053 5,679 8,080 5,699 8,084 5,697 Food and kindred products......... Tobacco manufactures............... Textile mill products................... Apparel and other textile products................................... Paper and allied products .......... 1,624 54 725 1,646 53 726 1,638 54 733 1,647 55 732 1,649 54 732 1,647 54 729 1,648 54 727 1,643 52 728 1,645 53 727 1,631 52 726 1,630 52 719 1,632 51 722 1,654 52 722 1,662 53 723 1,659 52 723 1,100 679 1,097 689 1,106 684 1,105 685 1,104 686 1,106 687 1,100 687 1,100 689 1,097 691 1,096 692 1,089 691 1,087 688 1,086 691 1,093 692 1,094 689 Printing and publishing............... Chemicals and allied products.... Petroleum and coal products...... Rubber and misc. plastics products................................... Leather and leather products ..... 1,507 1,026 165 1,565 1,063 167 1,532 1,047 167 1,538 1,047 166 1,544 1,049 165 1,548 1,052 164 1,554 1,056 165 1,559 1,060 166 1,565 1,065 167 1,567 1,067 167 1,572 1,070 167 1,575 1,069 168 1,581 1,071 169 1,583 1,073 169 1,590 1,075 167 823 144 872 146 851 146 854 147 856 147 860 147 864 146 870 146 873 146 882 147 878 145 874 146 882 145 887 145 889 146 SERVICE-PRODUCING ................. Transportation and public utilities......................................... 77,525 80,473 78,800 79,082 79,458 79,690 79,846 80,023 80,465 80,608 80,786 81,089 81,230 81,533 81,763 5,385 3,166 5,581 3,334 5,481 3,244 5,499 3,261 5,513 3,272 5,530 3,285 5,543 3,298 5,556 3,308 5,582 3,332 5,598 3,345 5,605 3,351 5,618 3,366 5,631 3,380 5,648 3,397 5,650 3,403 2,218 2,248 2,237 2,238 2,241 2,245 2,245 2,248 2,250 2,253 2,254 2,252 2,251 2,251 2,247 5,872 3,449 2,423 6,156 3,667 2,489 5,984 3,536 2,448 6,010 3,555 2,455 6,035 3,573 2,462 6,061 3,591 2,470 6,089 3,610 2,479 6,115 3,635 2,480 6,148 3,660 2,488 6,174 3,681 2,493 6,192 3,696 2,496 6,219 3,714 2,505 6,246 3,736 2,510 6,276 3,761 2,515 6,303 3,785 2,518 18,509 2,432 2,957 19,205 2,540 3,088 18,784 2,494 2,988 18,927 2,526 3,014 19,045 2,561 3,029 19,050 2,543 3,044 19,093 2,546 3,049 19,130 2,541 3,053 19,205 2,549 3,080 19,261 2,545 3,097 19,279 2,539 3,106 19,291 2,533 3,110 19,327 2,520 3,143 19,387 2,518 3,157 19,439 2,565 3,173 2,004 6,127 2,079 6,360 2,033 6,232 2,038 6,260 2,047 6,291 2,055 6,319 2,064 6,326 2,070 6,336 2,076 6,352 2,088 6,369 2,095 6,377 2,095 6,384 2,103 6,415 2,106 6,440 2,108 6,449 6,549 3,275 2,022 1,252 6,678 3,305 2,074 1,299 6,619 3,301 2,049 1,269 6,633 3,308 2,052 1,273 6,636 3,305 2,053 1,278 6,651 3,306 2,060 1,285 6,650 3,302 2,065 1,283 6,656 3,299 2,067 1,290 6,679 3,304 2,074 1,301 6,684 3,300 2,077 1,307 6,689 3,298 2,081 1,310 6,692 3,300 2,083 1,309 6,708 3,308 2,089 1,311 6,724 3,314 2,092 1,318 6,733 3,324 2,096 1,313 24,196 5,172 6,828 25,463 5,477 7,228 24,725 5,306 6,995 24,795 5,321 7,019 24,975 5,385 7,056 25,078 5,405 7,088 25,163 5,420 7,126 25,216 5,443 7,153 25,472 5,480 7,203 25,561 5,500 7,238 25,662 5,512 7,271 25,737 5,538 7,323 25,826 5,553 7,365 25,938 5,560 7,413 26,064 5,606 7,474 17,015 2,943 3,963 10,109 17,389 2,971 4,052 10,366 17,207 2,980 4,001 10,226 17,218 2,973 4,006 10,239 17,254 2,972 4,014 10,268 17,320 2,970 4,031 10,319 17,308 2,963 4,041 10,304 17,350 2,957 4,050 10,343 17,379 2,951 4,049 10,379 17,330 2,951 4,059 10,320 17,359 2,956 4,070 10,333 17,532 2,989 4,086 10,457 17,492 2,989 4,070 10,433 17,560 2,988 4,071 10,501 17,574 2,993 4,084 10,497 Production workers.................... Transportation........................... Communication and public utilities...................................... Wholesale trade .......................... Durable goods........................... Nondurable goods..................... Retail trad e................................... General merchandise stores....... Food stores ............................... Automotive dealers and service stations .................................... Eating and drinking places......... Finance, insurance, and real estate ........................................... Finance ..................................... Insurance .................................. Real estate................................ Services........................................ Business services...................... Health services .......................... Government ................................. Federal...................................... State......................................... Local......................................... = preliminary NOTE: See notes on the data for a description of the most recent benchmark revision. p https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 75 M O N T H L Y LA BO R R E V IE W February 1989 • Current Labor Statistics: Employment Data 14. Average weekly hours of production or nonsupervisory workers on private nonagricultural payrolls by industry, monthly data seasonally adjusted Industry Annual average 1987 1988 1987 1988p Dec. Jan. Mar. Feb. Apr. May June July Aug. Sept. Oct. Nov.e Dec.p 34.8 34.6 34.9 34.7 34.7 34.9 34.6 34.7 34.9 34.8 34.7 PRIVATE SECTOR .......................................... 34.8 34.8 34.6 34.7 MANUFACTURING................................................ 41.0 3.7 41.1 3.9 41.0 3.8 41.1 3.9 41.0 3.7 40.9 3.7 41.2 3.9 41.0 3.9 41.1 3.9 41.1 3.9 41.0 3.9 41.2 3.9 41.2 4.0 41.2 3.9 41.0 3.9 Overtime hours........................................... Lumber and wood products............................. Furniture and fixtures...................................... Stone, clay, and glass products....................... Primary metal industries .................................. Blast furnaces and basic steel products......... Fabricated metal products ............................... 41.5 3.8 40.6 40.0 42.3 43.1 43.4 41.5 41.8 4.1 40.3 39.4 42.3 43.6 44.0 41.8 41.5 3.9 40.4 39.8 42.5 43.4 44.0 41.7 41.6 4.0 40.2 39.6 42.0 43.4 44.0 41.8 41.5 3.8 40.3 39.5 42.3 43.1 43.8 41.6 41.5 3.8 40.1 39.3 42.3 43.3 43.7 41.6 42.0 4.2 40.6 39.5 42.5 43.5 43.8 42.0 41.8 4.2 40.1 39.5 42.3 43.6 43.9 41.9 41.8 4.1 40.2 39.4 42.4 43.6 44.3 42.0 41.8 4.0 40.5 39.7 42.1 43.4 44.0 41.7 41.6 4.1 40.0 39.0 42.1 43.5 44.0 41.8 41.9 4.0 39.9 39.6 42.3 44.0 44.6 42.0 41.9 4.2 40.7 39.4 42.5 43.8 44.3 41.9 41.9 4.1 40.3 39.5 42.6 43.7 44.0 42.1 41.7 4.1 40.6 39.3 42.1 43.4 43.8 41.9 Machinery except electrical ............................. Electrical and electronic equipment.................. Transportation equipment................................. Motor vehicles and equipment....................... Instruments and related products .................... Miscellaneous manufacturing........................... 42.2 40.9 42.0 42.2 41.4 39.4 42.6 41.0 42.8 43.6 41.6 39.2 42.6 40.9 41.5 41.4 41.2 39.2 42.7 41.1 42.0 42.1 41.8 39.1 42.6 40.9 42.0 42.3 41.3 39.3 42.5 40.9 42.1 42.3 41.4 39.2 42.8 41.2 43.0 44.1 41.8 39.4 42.6 41.0 43.0 44.0 41.4 39.2 42.5 41.1 43.0 44.2 41.3 39.3 43.0 41.0 42.6 42.5 41.8 39.2 42.4 40.8 42.7 43.6 41.5 39.2 42.7 41.0 43.3 44.5 41.6 39.2 42.6 41.0 43.3 44.2 41.9 39.1 42.4 41.0 43.4 44.8 41.5 39.3 42.4 40.7 43.0 43.9 41.4 39.0 Nondurable goods.............................................. Overtime hours........................................... Food and kindred products.............................. Textile mill products........................................ Apparel and other textile products.................... Paper and allied products ................................ 40.2 3.6 40.2 41.8 37.0 43.4 40.2 3.7 40.4 41.1 36.9 43.2 40.3 3.7 40.5 41.5 37.1 43.3 40.3 3.8 40.6 41.5 36.8 43.4 40.2 3.6 40.3 41.6 37.0 43.3 40.1 3.6 40.1 41.2 37.0 43.2 40.3 3.6 40.1 41.6 37.4 43.3 40.0 3.6 40.1 40.8 36.8 43.3 40.1 3.6 40.3 40.7 36.9 43.2 40.2 3.7 40.5 41.1 36.9 43.2 40.1 3.6 40.4 41.1 36.8 43.2 40.2 3.7 40.3 41.1 37.1 43.3 40.2 3.8 40.6 41.0 36.8 43.2 40.2 3.7 40.6 41.0 37.0 43.0 40.0 3.7 40.5 41.0 36.8 42.9 Printing and publishing..................................... Chemicals and allied products.......................... Rubber and miscellaneous plastics products.... Leather and leather products ........................... 38.0 42.3 41.6 38.2 38.0 42.3 41.6 37.5 38.0 42.5 41.6 38.0 38.1 42.5 41.7 38.0 38.1 42.4 41.6 37.8 38.1 42.5 41.7 37.9 38.2 42.1 42.0 37.3 37.7 42.0 41.7 37.3 38.0 42.4 41.6 36.9 38.0 42.3 41.6 37.0 38.0 42.1 41.5 37.6 38.1 42.1 41.6 37.5 38.0 42.5 41.5 37.9 37.8 42.4 41.7 37.5 37.7 42.3 41.4 37.1 TRANSPORTATION AND PUBLIC UTILITIES.... 39.2 39.3 39.1 39.5 39.1 38.8 39.5 39.4 39.3 39.5 39.3 39.4 39.4 39.3 39.5 37.8 38.1 38.1 38.0 38.0 Overtime hours........................................... Durable goods ................................................... WHOLESALE TRADE........................................... 37.5 - 38.0 38.1 38.2 38.1 38.3 38.0 37.9 38.2 RETAIL TRADE .................................................... 29.2 29.1 28.8 29.0 29.1 29.0 29.2 29.0 29.1 29.3 29.0 28.9 29.2 29.0 28.9 32.7 32.4 32.6 32.8 32.6 32.7 SERVICES ............................................................. - Data not available. p = preliminary Digitized for 76 FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 32.5 32.6 32.5 32.6 32.7 32.4 32.7 32.5 32.5 NOTE: See “ Notes on the data” for a description of the most recent benchmark adjustment. 15. Average hourly earnings of production or nonsupervisory workers on private nonagricultural payrolls by industry ________________________________ _ Industry Annual average 1987 PRIVATE SECTOR................................................ $8.98 Seasonally adjusted ...................................... MINING.................................................................. 12.52 1988 1987 1988P Dec. Jan. Feb. Mar. Apr. May June July Aug. $9.24 9.32 Nov,p Dec.p Sept. Oct. $9.40 9.37 $9.45 9.43 $9.45 9.42 $9.45 9.44 $9.29 - $9.13 9.11 $9.18 9.14 $9.17 9.13 $9.18 9.16 $9.23 9.23 $9.26 9.27 $9.23 9.27 $9.25 9.32 12.68 12.60 12.77 12.71 12.59 12.60 12.54 12.55 12.66 12.62 12.75 12.72 12.80 12.84 12.95 13.13 13.13 13.04 13.15 CONSTRUCTION.................................................. 12.69 12.97 12.81 12.99 12.82 12.87 12.88 12.87 12.85 12.91 MANUFACTURING................................................ 9.91 10.17 10.07 10.07 10.05 10.07 10.12 10.14 10.16 10.16 10.12 10.25 10.24 10.30 10.37 10.78 8.67 8.07 10.55 12.25 14.08 10.32 10.78 8.76 8.04 10.58 12.20 14.04 10.32 10.85 8.68 8.00 10.60 12.23 13.99 10.35 10.92 8.74 8.04 10.50 12.26 13.96 10.39 10.43 8.40 7.67 Stone, clay, and glass products....................... 10.25 11.94 Blast furnaces and basic steel products........ 13.78 Fabricated metal products ............................... 10.00 10.70 8.60 7.92 10.47 12.15 13.97 10.24 10.60 8.43 7.78 10.29 12.11 13.93 10.19 10.60 8.51 7.80 10.35 12.06 13.82 10.12 10.58 8.53 7.74 10.33 12.03 13.89 10.13 10.59 8.45 7.76 10.36 12.07 13.89 10.14 10.65 8.50 7.81 10.41 12.11 13.94 10.22 10.67 8.54 7.87 10.45 12.13 13.96 10.23 10.69 8.60 7.91 10.48 12.15 13.96 10.26 10.67 8.65 7.97 10.54 12.22 14.09 10.18 10.64 8.58 8.00 10.46 12.11 13.96 10.20 Machinery, except electrical ............................ 10.70 Electrical and electronic equipment.................. 9.88 Transportation equipment................................. 12.95 Motor vehicles and equipment....................... 13.55 Instruments and related products ..................... 9.71 7.75 Miscellaneous manufacturing........................... 10.97 10.13 13.37 14.08 9.94 7.98 10.89 10.03 13.25 13.87 9.84 7.91 10.85 10.02 13.22 13.94 9.93 7.97 10.82 10.02 13.17 13.85 9.92 7.90 10.84 10.04 13.20 13.93 9.88 7.91 10.88 10.09 13.28 14.09 9.89 7.92 10.90 10.12 13.31 14.10 9.87 7.94 10.93 10.15 13.35 14.16 9.88 7.93 10.94 10.13 13.23 13.86 9.93 7.94 10.93 10.15 13.26 13.90 9.91 7.93 11.05 10.19 13.49 14.17 9.97 7.99 11.07 10.16 13.49 14.16 10.05 8.07 11.17 10.23 13.61 14.26 10.02 8.09 11.20 10.30 13.78 14.48 10.06 8.17 9.18 8.94 14.03 Textile mill products........................................ 7.17 Apparel and other textile products.................... 5.93 Paper and allied products ................................ 11.43 9.42 9.11 14.58 7.37 6.10 11.64 9.32 9.07 13.69 7.31 6.00 11.53 9.32 9.06 13.79 7.34 6.02 11.54 9.31 9.06 14.01 7.30 6.02 11.50 9.33 9.07 14.42 7.31 6.03 11.52 9.37 9.14 14.98 7.35 6.04 11.60 9.38 9.15 15.24 7.31 6.05 11.64 9.39 9.12 15.78 7.33 6.08 11.65 9.45 9.13 15.66 7.31 6.02 11.71 9.40 9.04 14.84 7.37 6.07 11.63 9.50 9.12 13.98 7.43 6.19 11.70 9.48 9.04 13.92 7.45 6.20 11.67 9.52 9.15 14.45 7.47 6.23 11.70 9.60 9.21 14.40 7.51 6.27 11.78 10.28 Chemicals and allied products.......................... 12.37 Petroleum and coal products........................... 14.59 Rubber and miscellaneous plastics products.... 8.91 Leather and leather products ........................... 6.08 10.53 12.68 15.04 9.11 6.27 10.43 12.61 14.73 9.04 6.16 10.38 12.55 14.89 9.00 6.16 10.40 12.55 14.96 9.00 6.19 10.45 12.53 14.98 9.00 6.23 10.40 12.57 15.00 9.04 6.29 10.43 12.59 14.93 9.04 6.27 10.43 12.60 15.04 9.07 6.27 10.49 12.70 14.99 9.11 6.20 10.55 12.63 14.91 9.14 6.23 10.70 12.76 15.08 9.18 6.31 10.68 12.79 15.22 9.20 6.34 10.66 12.87 15.26 9.22 6.39 10.72 13.02 15.25 9.29 6.33 TRANSPORTATION AND PUBLIC UTILITIES.... 12.03 12.33 12.24 12.16 12.23 12.19 12.27 12.28 12.27 12.33 12.35 12.41 12.43 12.50 12.48 9.59 9.92 9.78 9.78 9.78 9.88 9.87 9.85 9.93 9.88 10.01 10.08 10.05 10.13 6.26 6.37 6.38 6.43 6.40 Lumber and wood products ............................. Nondurable goods ............................................... Food and kindred products.............................. WHOLESALE TRADE........................................... 9.73. RETAIL TRADE .................................................... 6.11 6.30 6.19 6.24 6.23 6.24 6.26 6.28 6.26 6.28 FINANCE, INSURANCE, AND REAL ESTATE 8.73 9.09 8.81 8.96 9.02 8.97 9.03 9.09 8.98 9.03 9.04 9.14 9.29 9.27 9.28 8.79 8.79 8.98 9.07 9.09 9.13 SERVICES ............................................................. p Data not available. _ preliminary https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 8.48 8.90 8.73 8.81 8.81 8.80 8.82 8.84 8.78 NOTE: See “ Notes on the data” for a description of the most recent benchmark revision. M O N T H L Y LA BO R R E V IE W 16. February 1989 Current Labor Statistics: • Employment Data Average weekly earnings of production or nonsupervisory workers on private nonagricultural payrolls by industry Annual average 1987 1988 Industry 1987 1988P Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov.p Dec.p PRIVATE SECTOR Current dollars.............................................. $312.50 $323.29 $317.72 $315.79 $316.37 $315.79 $320.28 $320.40 $322.13 $324.68 $323.40 $327.12 $329.81 $327.92 $329.81 Seasonally adjusted.................................... 315.21 317.16 317.72 316.94 322.13 321.67 321.67 325.27 322.47 325.14 329.11 327.82 327.57 Constant (1977) dollars ................................. 169.28 169.54 167.97 168.01 167.08 168.57 167.92 168.13 168.75 167.30 168.10 168.96 167.82 MINING.................................................................. 530.85 535.10 543.06 537.62 531.28 527.52 539.28 529.19 533.38 535.52 530.04 538.05 543.14 536.32 540.56 CONSTRUCTION.................................................. 479.68 491.56 481.66 466.34 462.80 481.34 488.15 491.63 497.30 497.04 499.87 504.19 512.07 491.61 489.18 Current dollars............................................... Constant (1977) dollars.................................. 406.31 220.10 417.99 - 420.93 224.62 412.87 219.61 409.04 217.23 411.86 217.92 414.92 218.38 414.73 217.36 418.59 218.47 413.51 214.92 412.90 213.61 423.33 217.54 422.91 216.66 427.45 218.76 433.47 - Durable goods ..................................................... Lumber and wood products............................. Furniture and fixtures....................................... Stone, clay, and glass products....................... Primary metal industries .................................. Blast furnaces and basic steel products......... Fabricated metal products ............................... 432.85 341.04 306.80 433.58 514.61 598.05 415.00 447.26 449.44 346.58 341.42 312.05 319.76 442.88 435.27 529.74 534.05 614.68 618.49 428.03 435.11 440.96 336.15 303.42 423.32 524.61 606.70 423.02 436.95 339.49 301.09 426.63 519.70 609.77 418.37 440.54 444.11 444.94 337.16 345.10 345.87 302.64 305.37 307.72 435.12 442.43 447.26 523.84 526.79 527.66 606.99 613.36 612.84 421.82 426.17 426.59 448.98 351.74 311.65 448.54 530.96 621.22 431.95 439.60 439.43 348.60 345.77 310.03 314.40 446.90 444.55 525.46 521.94 619.96 608.66 417.38 423.30 452.76 348.53 323.61 451.54 539.00 629.38 433.44 452.76 457.87 358.28 347.20 322.40 319.20 454.94 451.56 531.92 536.90 616.36 615.56 433.44 438.84 465.19 355.72 326.42 439.95 540.67 618.43 445.73 Machinery, except electrical ............................ Electrical and electronic equipment.................. Transportation equipment................................ Motor vehicles and equipment....................... Instruments and related products .................... Miscellaneous manufacturing........................... 451.54 404.09 543.90 571.81 401.99 305.35 467.32 415.33 572.24 613.89 413.50 312.82 475.89 464.38 421.26 413.83 565.78 560.53 593.64 592.45 415.25 415.07 316.40 310.03 459.85 406.81 553.14 587.24 408.70 307.31 462.87 410.64 561.00 598.99 411.01 310.07 Nondurable goods ............................................... 369.04 359.39 547.17 299.71 219.41 496.06 378.68 368.04 578.83 302.91 225.09 502.85 381.19 372.78 554.45 307.75 225.60 509.63 MANUFACTURING Food and kindred products.............................. Tobacco manufactures .................................... Textile mill products........................................ Apparel and other textile products.................... Paper and allied products ................................ 374.66 370.54 366.93 358.78 540.57 540.79 303.14 301.49 220.33 220.93 501.99 494.50 463.49 411.67 569.71 621.37 410.44 309.67 462.16 465.62 411.88 417.17 572.33 574.05 624.63 625.87 406.64 409.03 309.66 311.65 462.76 409.25 551.69 576.58 408.12 305.69 459.06 471.84 412.09 417.79 554.27 580.07 587.97 624.90 408.29 414.75 309.27 314.01 470.48 476.96 487.20 416.56 423.52 430.54 581.42 594.76 609.08 623.04 638.85 657.39 419.09 419.84 426.54 319.57 321.98 325.17 373.20 373.86 359.17 361.03 566.71 576.73 299.71 301.35 223.11 222.27 494.21 498.80 374.26 366.92 601.98 297.52 222.64 501.68 377.48 367.54 628.04 300.53 226.18 502.12 377.06 368.85 613.87 295.32 220.33 502.36 377.88 368.83 595.08 304.38 223.98 498.93 384.75 373.01 575.98 307.60 229.03 511.29 382.04 368.83 574.90 306.94 229.40 505.31 385.56 389.76 374.24 378.53 582.34 567.36 309.26 312.42 232.38 233.87 506.61 515.96 Printing and publishing..................................... Chemicals and allied products.......................... Petroleum and coal products........................... Rubber and miscellaneous plastics products........................................... Leather and leather products .......................... 390.64 523.25 641.96 400.14 536.36 666.27 403.64 392.36 542.23 533.38 655.49 658.14 393.12 530.87 647.77 399.19 395.20 532.53 529.20 654.63 666.00 391.13 528.78 658.41 392.17 534.24 678.30 396.52 533.40 679.05 403.01 527.93 664.99 411.95 539.75 674.08 406.91 541.02 680.33 406.15 548.26 672.97 411.65 557.26 667.95 370.66 232.26 378.98 235.13 383.30 237.78 376.20 231.62 372.60 227.79 375.30 233.00 377.87 232.73 376.06 235.75 378.22 237.63 373.51 231.26 377.48 234.87 381.89 236.63 382.72 240.29 386.32 240.26 392.04 238.64 TRANSPORTATION AND PUBLIC UTILITIES............................................................. 471.58 484.57 479.81 474.24 475.75 470.53 480.98 481.38 484.67 490.73 490.30 490.20 490.99 492.50 494.21 WHOLESALE TRADE........................................... 365.38 377.95 371.69 370.66 370.66 370.66 377.42 375.06 375.29 380.32 375.44 381.38 385.06 381.90 386.97 RETAIL TRADE .................................................... 178.41 183.33 181.37 176.59 177.56 178.46 180.91 181.49 184.04 188.40 186.55 184.73 185.66 185.18 187.52 FINANCE, INSURANCE, AND REAL ESTATE ................................................................ 316.90 327.24 317.16 324.35 328.33 321.13 326.89 325.42 321.48 326.89 322.73 327.21 334.44 330.94 332.22 SERVICES ............................................................. 275.60 290.14 282.85 285.44 287.21 284.24 287.53 286.42 287.11 290.07 288.31 291.85 296.59 295.43 297.64 - Data not available. p = preliminary Digitized for78 FRASER 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. 17. The Hourly Earnings Index for production or nonsupervisory workers on private nonagricultural payrolls by industry __________________________ Seasonally adjusted Not seasonally adjusted Industry Nov. 1988p Dec. 1988p Aug. 1988 179.5 180.3 _ 159.3 180.0 182.0 Dec. 1987 PRIVATE SECTOR (in current dollars) ....................... 176.3 181.4 181.7 182.2 175.7 183.9 155.9 177.0 179.8 179.6 162.7 189.9 186.2 186.5 160.8 179.8 183.1 186.0 168.3 200.2 193.8 187.1 159.5 180.6 184.2 185.1 168.9 199.5 194.0 187.3 160.4 181.3 184.4 186.6 168.2 200.2 194.9 _ _ Construction............................................................ Manufacturing ......................................................... Transportation and public utilities ............................. Wholesale trade1 ..................................................... Retail trade ............................................................. Finance, insurance, and real estate’ ......................... Services.................................................................. 155.4 176.6 178.2 162.7 185.2 158.6 179.3 181.9 166.7 190.9 PRIVATE SECTOR [in constant (1977) dollars] ......... 94.1 92.9 93.0 - 93.7 92.9 181.5 Nov. 1988p Dec. 1988p 181.7 181.4 - - - 191.9 159.2 180.5 183.1 “ 168.4 " 194.0 159.3 180.7 182.9 ” 168.9 193.3 159.9 180.9 182.8 “ 168.2 “ 193.9 93.0 93.1 92.9 - 167.1 p = preliminary. NOTE: See “ Notes on the data” for a description of the most recent benchmark re vision. Publication of the Hourly Earnings Index series will be discontinued with the ini tial publicatgion of the December 1988 data. 1 This series is not seasonally adjusted because the seasonal component is small relative to the trend-cycle, irregular components, or both, and consequently cannot be separated with sufficient precision. - Data not available. 18. Oct. 1988 Sept. 1988 Dec. 1987 Oct. 1988 Indexes of diffusion: industries in which employment increased, data seasonally adjusted (In percent) Time span and year Jan. Feb. Mar. May Apr. June July Aug. Sept. Oct. Nov. Dec. Over 1-month span: 1986 ................................................................. 1987 ................................................................. 1988 ................................................................. 57.0 50.8 61.6 47.3 59.2 61.6 49.5 61.1 62.2 50.8 62.4 63.8 51.9 62.4 58.1 46.8 61.6 68.9 51.9 70.8 61.4 54.1 62.2 51.9 51.4 68.1 49.5 53.0 67.3 62.4 58.9 67.8 71.1 58.9 68.4 63.2 Over 3-month span: 1986 ................................................................. 1987 ................................................................. 1988 ................................................................. 50.0 57.6 71.6 47.6 57.0 66.8 45.7 65.1 67.0 46.2 69.2 66.8 46.2 68.1 71.4 46.2 71.9 69.7 48.1 73.8 68.4 51.9 76.8 57.3 50.5 74.1 57.0 55.9 76.5 66.2 59.7 78.1 74.2 59.2 73.0 1987 ................................................................. 1988 ................................................................. 48.1 64.6 73.5 47.3 64.3 70.3 43.8 63.0 70.3 42.7 70.3 73.8 43.2 72.4 70.5 47.0 77.3 68.4 46.5 78.4 64.9 50.0 79.7 72.4 55.9 82.7 71.1 53.2 77.8 55.9 77.0 58.4 76.5 Over 12-month span: 1986 ................................................................. 1987 ...................................................... 1988 ................................................................. 42.2 63.8 77.6 41.6 67.3 77.6 43.8 69.5 74.3 44.9 73.5 76.2 45.7 76.8 73.5 48.6 76.8 46.8 78.9 48.6 78.9 51.6 79.7 53.8 78.4 56.5 77.8 57.8 81.9 Over 6-month span: Data not available NOTE: Figures are the percent of industries with employment rising. (Half of the unchanged components are counted as rising.) Data are centered within the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis spans. Data for the 2 most recent months shown in each span are preliminary. See the "Definitions” in this section. See “ Notes on the data” for a description of the most recent benchmark revision. 79 M O N T H L Y LA BO R R E V IE W February 1989 • Current Labor Statistics: Employment Data 19. Annual data: Employment status of the noninstitutional population (Numbers in thousands) Employment status 1980 1981 1982 1983 1984 1985 1986 1987 1988'= Noninstitutional population................................. 169,349 171,775 173,939 175,891 ' 178,080 179,912 182,293 184,490 186,322 Labor force: Total (number).............................. Percent of population.................................... 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 65.9 123,378 66.2 100,907 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 1,737 116,677 62.6 1,709 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 3,208 109,232 114,968 3,169 111,800 Unemployed: Total (number)................................ Percent of labor force......................... 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 6,701 5.4 Not in labor force (number) ............................. 60,806 61,460 62,067 62,665 62,839 62,744 62,752 62,888 62,944 Employed: Total (number) ................................. Percent of population ............................... Resident Armed Forces....................... Civilian Total ............................................. Agriculture..................................... Nonagricultural industries................... p = p relim inary 20. Annual data: Employment levels by industry (Numbers in thousands) Industry 1980 1981 1982 1983 1984 1985 1986 Total employment ................................ Private sector........................ Goods-producing ........................................................... Mining ................................. Construction ............................................................. Manufacturing........................................................... 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 99,525 82,832 24,558 777 4,816 18,965 Service-producing......................... Transportation and public utilities ................................ Wholesale trade .......................................... Retail trade ...................................... Finance, insurance, and real estate ................. Services..................................... 64,748 5,146 5,275 15,035 5,160 17,890 65,659 5,165 5,358 15,189 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 69,769 5,159 5,555 16,545 5,689 20,797 72,660 5,238 5,717 17,356 5,955 22,000 74,967 5,255 5,753 17,930 6,283 23,053 77,525 5,385 5,872 18,509 6,549 24,196 80,473 5,581 6,156 19,205 6,678 25,463 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 16,693 2,899 3,893 9,901 17,015 2,943 3,963 10,109 17,389 2,971 4,052 10,366 Government................................ Federal........................................... State............................................... Local .............................................. NOTE: See “ Notes on the data" for a description of the most recent benchmark revision. Digitized for80 FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis p = p relim inary 1987 1988° 102,310 106,037 85,295 88,648 24,784 25,564 721 733 4,998 5,292 19,065 19,540 21. Annual data: Average hours and earnings of production or nonsupervisory workers on nonagricultural payrolls, by industry ______________________________________ Industry Private sector Average weekly hours...................................................... Average hourly earnings (in dollars).................................. Average weekly earnings (in dollars) ................................. Mining Average weekly hours ................................................. Average hourly earnings (in dollars) ............................. Average weekly earnings (in dollars)............................ Construction Average weekly hours ................................................. Average hourly earnings (in dollars) ............................. Average weekly earnings (in dollars)............................ 1980 1981 1982 1983 1984 1985 1986 1987 1988p 35.3 6.66 235.10 35.2 7.25 255.20 34.8 7.68 267.26 35.0 8.02 280.70 35.2 8.32 292.86 34.9 8.57 299.09 34.8 8.76 304.85 34.8 8.98 312.50 34.8 9.29 323.29 43.3 9.17 397.06 43.7 10.04 438.75 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 12.46 625.81 42.4 12.52 530.85 42.2 12.68 535.10 37.0 9.94 367.78 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 12.48 466.75 37.8 12.69 479.68 37.9 12.97 491.56 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 41.1 10.17 417.99 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 11.12 438.13 39.5 11.40 450.30 39.2 11.70 458.64 39.2 12.03 471.58 39.3 12.33 484.57 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 38.3 9.35 358.11 38.1 9.59 365.38 38.1 9.92 3/7.95 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 29.2 6.11 178.41 29.1 6.30 183.33 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 8.36 304.30 36.3 8.73 316.90 36.0 9.09 327.24 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 8.18 265.85 32.5 8.48 275.60 32.6 8.90 290.14 Manufacturing Average weekly hours ................................................. Average hourly earnings (in dollars) ............................. Average weekly earnings (in dollars)............................ Transportation and public utilities Average weekly hours ................................................. Average hourly earnings (in dollars) ............................. Average weekly earnings (in dollars)............................ Wholesale trade Average weekly hours ................................................. Average hourly earnings (in dollars) ............................. Average weekly earnings (in dollars)............................ Retail trade Average weekly hours ................................................. Average hourly earnings (in dollars) ............................. Average weekly earnings (in dollars)............................ Finance, insurance, and real estate Average weekly hours ................................................. Average hourly earnings (in dollars) ............................. Average weekly earnings (in dollars)............................ Services Average weekly hours ................................................. Average hourly earnings (in dollars)............................. Average weekly earnings (in dollars)............................ = p relim inary https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M O N T H L Y LA BO R R E V IE W February 1989 • Current Labor Statistics: Compensation & Industrial Relations 22. Employment Cost Index, compensation,' by occupation and industry group (June 1981 = 100) 1986 1987 1988 Percent change Series Sept. Dec. Mar. June 133.0 133.8 135.0 135.9 136.0 127.8 135.4 136.9 128.4 136.6 138.5 129.1 138.0 128.8 129.3 135.6 142.4 129.5 130.1 136.5 143.6 130.2 130.7 138.1 145.2 Sept. 3 months ended 12 months ended Dec. Mar. June 137.5 138.6 140.6 142.1 144.0 1.3 4.7 139.3 130.1 138.5 141.2 131.3 139.9 142.2 132.5 140.8 144.2 134.7 142.9 145.7 136.2 144.3 147.9 137.2 147.2 1.5 .7 2.0 4.7 4.5 5.2 131.1 131.5 138.9 145.8 133.5 134.1 141.7 150.6 _ 148.1 140.5 135.8 136.8 143.6 152.8 _ 150.3 142.3 137.3 138.1 145.1 153.8 _ _ 151.2 143.9 138.2 139.0 147.6 157.7 _ 154.0 146.1 .7 .7 1.7 2.5 1.7 1.8 1,9 1.5 4.5 4.7 4.8 5.7 5.6 5.8 5.2 4.7 Sept. Sept. 1988 Civilian workers 2.............................................................. Workers, by occupational group: White-collar workers ...................................................... Blue-collar workers......................................................... Service occupations....................................................... Workers, by industry division: Goods-producing............................................................. Manufacturing ............................................................... Service-producing ........................................................... Services....................................................................... Health services.......................................................... Hospitals.................................................................... Public administration 3 ................................................... Nonmanufacturing........................................................... Private industry workers................................................ Workers, by occupational group: White-collar workers.................................................... Professional specialty and technical occupations........ Executive, administrative, and managerial occupations Sales occupations...................................................... Administrative support occupations, Including clerical ..................................................................... Blue-collar workers...................................................... Precision production, craft, and repair occupation........ Machine operators, assemblers, and inspectors.......... Transportation and material moving occupations......... Handlers, equipment cleaners, helpers, and laborers .... Service occupations.................................................... Workers, by industry division: Goods-producing.......................................................... Construction ............................................................... Manufacturing.............................................................. Durables .................................................................... Nondurables.............................................................. Service-producing ......................................................... Transportation and public utilities................................. Transportation............................................................ Public utilities............................................................. Wholesale and retail trade........................................... Wholesale trade ................................................... Retail trade ................................................. Finance, insurance, and real estate........ Service ............................................ Health services....................................... Hospitals ........................................................ Nonmanufacturing ............................................ State and local government workers ..................... Workers, by occupational group: White-collar workers................................................. Blue-collar workers..................................................... Workers, by industry division: Services ........................................... Hospitals and other services4 .................................... Health services.................................. Schools .............................................. Elementary and secondary...................................... Public administration3 ............................................ - - - - 140.6 134.6 141.6 135.4 - 144.1 136.9 144.7 137.8 132.2 132.7 140.8 149.2 146.4 139.6 130.8 131.6 132.9 133.8 135.1 136.0 138.1 139.8 141.2 1.0 4.5 133.5 - 134.3 - 136.1 - 137.0 - 138.5 - 139.3 _ 141.2 _ 143.0 _ _ 144.6 _ _ 1.1 1.6 .8 .5 4.4 5.2 3.3 4.0 127.2 128.4 - 129.5 130.6 - - 131.8 _ _ _ 135.6 _ 136.7 134.1 _ _ _ 138.6 _ 136.5 - 127.8 - 1.4 .7 .6 .7 1.0 .8 1.5 5.2 4.5 3.8 5.4 5.0 4.8 4.6 133.2 _ 134.1 _ 138.4 _ _ 135.6 _ 136.8 _ _ 140.2 _ _ 4.5 4.1 4.7 4.8 4.5 4.4 3.2 4.0 2.2 4.6 4.4 4.7 3.0 5.6 5.8 5.9 - - - - - - - - - 132.3 133.5 134.7 135.2 135.9 128.6 129.3 132.7 - 129.2 130.1 133.5 - 129.9 130.7 135.3 - 130.8 131.5 136.3 - 131.9 _ 132.7 137.7 _ - - _ _ _ _ 140.1 137.1 _ _ _ _ _ 142.2 137.9 _ 139.0 - - - - - - - - - .6 .8 .7 .5 .9 1.2 .7 .7 .6 1.1 1.0 1.1 .1 2.0 1.6 1.7 131.7 132.4 134.1 135.1 136.4 137.1 138.9 140.8 142.4 1.1 4.4 143.6 144.7 145.9 146.3 149.7 151.1 153.1 153.6 157.8 2.7 5.4 145.0 138.5 146.0 139.5 147.2 140.8 147.5 141.3 151.2 143.3 152.7 144.3 154.8 145.9 155.2 145.9 159.6 148.4 2.8 1.7 5.6 3.6 145.5 139.4 146.6 141.1 147.3 142.5 147.6 143.3 151.8 145.1 153.1 146.3 155.2 150.3 155.6 150.4 160.5 153.2 - - - - - _ 147.6 149.4 140.6 148.4 150.3 141.6 148.9 150.5 144.1 149.1 150.7 144.7 154.1 156.5 146.4 155.5 157.8 148.1 156.8 158.9 150.3 157.3 159.4 151.2 163.1 165.4 154.0 3.1 1.9 2.3 3.7 3.8 1.9 5.7 5.6 4.9 5.8 5.7 5.2 - - _ _ _ - - _ - - - _ _ _ _ _ _ - _ _ _ _ _ _ _ _ _ _ - - - - - - - - - - _ _ 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. Digitized for82 FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - _ _ _ _ _ _ _ _ _ _ _ 138.1 _ _ 142.1 _ _ _ _ _ _ _ _ _ _ 143.8 _ _ _ _ _ _ _ _ 3 Consist of legislative, judicial, administrative, and regulatory activities. 4 Includes, for example, library, social, and health services. - Data not available. 23. Employment Cost Index, wages and salaries, by occupation and industry group (June 1981 =100) Series Sept. Dec. Mar. June Percent change 1988 1987 1986 Sept. Dec. Mar. June Sept. 3 months ended 12 months ended Sept. 1988 Civilian workers 1................................................................... 130.7 131.5 132.8 133.5 135.2 136.1 140.5 1.3 3.9 143.0 131.6 139.3 145.2 132.5 141.8 1.5 .7 1.8 4.2 3.3 4.3 132.2 133.3 140.5 149.5 145.5 139.0 133.4 134.4 141.9 150.4 146.4 140.5 134.1 135.1 144.2 154.0 148.9 142.7 .5 .5 1.6 2.4 1.8 1.8 1.7 1.6 3.3 3.3 4.1 4.9 5.3 5.6 4.4 4.1 135.1 136.6 137.9 1.0 3.7 142.4 148.1 1.1 1.6 3.9 4.9 137.4 Workers, by occupational group: White-collar workers ...................................................... Blue-collar workers......................................................... Service occupations....................................................... 134.1 125.0 131.7 135.0 125.6 132.8 136.6 126.2 134.2 137.3 127.1 134.7 139.4 128.3 136.0 140.2 129.4 136.6 141.5 130.4 138.0 Workers, by industry division Goods-producing............................................................. Manufacturing ................................................................ Service-producing ........................................................... Services ..................................................................... Health services.......................................................... Hospitals................. .................................................. Public administration 2 ................................................. Nonmanufacturing ......................................................... 126.3 127.2 133.4 139.9 137.5 132.2 127.0 127.9 134.2 141.1 128.5 129.5 136.5 143.4 141.0 135.2 129.8 130.8 138.5 146.8 138.1 133.0 127.8 128.7 135.8 142.7 140.5 134.5 142.6 137.1 131.0 132.2 139.2 148.2 143.8 137.8 Private industry workers................................................. 128.8 129.5 130.8 131.7 133.0 133.8 Workers, by occupational group: White-collar workers.................................................. Professional specialty and technical occupations..... Executive, administrative, and managerial occupations.......................................................... Sales occupations................................................... Administrative support occupations, including clerical.................................................................. - - 138.7 132.0 135.4 132.7 136.4 134.6 138.4 135.4 139.1 137.0 141.2 137.6 142.6 139.0 144.0 140.8 145.8 132.4 125.2 133.5 124.9 135.6 126.7 136.4 127.1 138.6 127.0 139.2 126.1 139.9 127.5 141.3 130.8 142.5 131.5 .8 .5 2.8 3.5 131.7 132.7 134.3 135.5 137.1 138.1 140.2 141.2 143.2 1.4 4.4 124.5 125.1 125.6 126.6 127.7 128.9 129.9 131.1 131.9 .6 3.3 126.7 124.1 119.8 127.4 124.9 120.1 127.9 125.5 120.5 128.8 126.7 121.5 130.2 127.5 122.3 131.1 129.2 122.9 132.1 129.9 123.7 133.4 131.2 T25.4 134.0 131.9 126.7 .4 .5 1.0 2.9 3.6 3.6 120.9 128.9 121.4 130.1 121.9 131.4 122.6 131.9 123.7 132.6 125.0 133.2 126.7 134.5 127.5 135.8 128.4 137.6 .7 1.3 3.8 3.8 Workers, by industry division: Goods-producing........................................................ Construction ............................................................. Manufacturing........................................................... Durables................................................................ Nondurables........................................................... Service-producing....................................................... Transportation and public utilities............................ Transportation....................................................... Public utilities......................................................... Wholesale and retail trade....................................... Wholesale trade .................................................. Retail trade.......................................................... Finance, insurance, and real estate......................... Services................................................................. Health services ..................................................... Hospitals.............................................................. 126.1 120.5 127.2 126.4 128.5 130.9 127.3 126.5 131.8 124.4 129.0 138.2 - 126.8 120.8 127.9 127.2 129.3 131.6 127.5 126.9 133.1 124.5 130.0 139.5 -, 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 - 132.0 125.9 133.3 132.1 135.6 137.5 131.3 131.9 139.0 129.2 132.9 148.6 - 133.2 127.6 134.4 133.1 136.7 139.3 132.5 134.6 141.7 131.7 134.9 149.8 - 133.9 128.6 135.1 133.7 137.6 141.0 133.5 136.0 143.2 133.2 134.9 152.9 “ .5 .8 .5 .5 .7 1.2 .8 .9 .7 1.0 1.1 1.1 .0 2.1 1.7 1.7 3.3 3.9 3.3 3.1 3.6 3.9 2.7 2.6 2.7 4.1 3.9 4.2 2.4 4.8 5.5 5.7 Nonmanufacturing..................................................... 129.7 130.4 131.9 132.8 134.2 134.8 136.0 137.8 139.4 1.2 3.9 State and local government workers............................. 140.4 141.4 142.5 142.8 146.1 147.4 148.7 149.1 153.0 2.6 4.7 141.8 134.5 142.8 135.1 143.9 136.3 144.1 136.9 147.7 139.0 149.3 139.6 150.5 141.1 150.8 141.1 154.9 143.5 2.7 1.7 4.9 3.2 142.1 135.8 144.1 145.7 137.5 143.3 137.3 145.1 146.4 138.1 143.9 138.6 145.5 146.5 140.5 144.2 139.4 - ' 145.6 146.6 141.0 148.2 141.2 150.3 152.0 142.6 149.5 142.2 151.8 153.4 143.8 150.7 144.5 152.6 154.0 145.5 151.1 144.7 153.0 154.3 146.4 155.6 147.4 158.0 159.7 148.9 3.0 1.9 2.4 3.3 3.5 1.7 5.0 4.4 4.8 5.1 5.1 4.4 Blue-collar workers................................................... Precision production, craft, and repair occupations......................................................... Machine operators, assemblers, and inspectors....... Transportation and material moving occupations...... Handlers, equipment cleaners, helpers, and laborers................................................................ Service occupations.................................................. Workers, by occupational group White-collar workers.................................................. Blue-collar workers................................................... Workers, by industry division Services ................................................................... Hospitals and other services 3 ................................. Health services ..................................................... Schools.................................................................. Elementary and secondary ................................... Public administration 2............................................... 1 Consists of private industry workers (excluding farm and household workers) and State and local government (excluding Federal Government) workers. 2 Consists of legislative, judicial, administrative, and regulatory activities. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3 Includes, for example, library, social and health services, - Data not available. M O N T H L Y LA BO R R E V IE W February 1989 • Current Labor Statistics: Compensation & Industrial Relations 24. Employment Cost Index, private nonfarm workers, by bargaining status, region, and area size (June 1981=100) 1987 1986 1988 Percent change Series Sept. Dec. Mar. June Sept. Dec. Mar. June Sept. 3 months ended 12 months ended Sept. 1988 COMPENSATION Workers, by bargaining status’ Union .............................................................................. Goods-producing ........................................................... Service-producing.......................................................... Manufacturing ............................................................... Nonmanufacturing ......................................................... 129.4 127.3 132.8 127.5 131.2 129.8 127.5 133.4 127.9 131.5 130.5 128.0 134.4 128.0 132.6 131.2 128.7 135.2 128.7 133.5 132.0 129.5 135.9 129.5 134.3 133.4 131.3 136.7 131.5 135.1 135.6 134.1 138.0 135.0 136.2 136.9 135.3 139.4 136.2 137.5 137.9 136.2 140.5 137.0 138.6 0.7 .7 .8 .6 .8 4.5 5.2 3.4 5.8 3.2 Nonunion......................................................................... Goods-producing........................................................... Service-producing.......................................................... Manufacturing ................................................................ Nonmanufacturing.......................................................... 131.2 129.1 132.5 130.4 131.6 132.1 130.0 133.4 131.4 132.5 133.6 130.8 135.3 132.2 134.3 134.6 131.8 136.4 133.2 135.3 136.1 133.1 137.9 134.6 136.8 136.9 134.1 138.6 135.6 137.5 138.9 136.2 140.5 137.8 139.4 140.7 137.8 142.5 139.2 141.5 142.2 138.7 144.4 140.1 143.2 1.1 .7 1.3 .6 1.2 4.5 4.2 4.7 4.1 4.7 134.2 130.7 127.3 132.1 135.2 131.4 128.1 132.8 137.4 132.1 129.1 134.1 138.6 133.2 130.2 134.2 140.3 134.2 131.2 135.8 141.9 135.4 131.7 136.3 143.7 137.1 134.4 138.3 145.9 139.3 135.5 139.5 147.8 140.4 136.7 140.6 1.3 .8 .9 .8 5.3 4.6 4.2 3.5 131.4 127.2 132.2 127.9 133.5 129.0 134.4 130.2 135.8 131.3 136.7 132.0 138.9 133.6 140.5 135.5 142.0 136.2 1.1 .5 4.6 3.7 Union .............................................................................. Goods-producing........................................................... Service-producing.......................................................... Manufacturing ............................................................... Nonmanufacturing ......................................................... 126.9 124.5 130.5 125.0 128.5 127.2 124.8 130.9 125.5 128.7 127.7 125.0 131.7 125.6 129.5 128.3 125.8 132.2 126.2 130.1 129.1 126.5 132.9 127.0 130.8 130.5 128.5 133.6 129.3 131.5 131.0 128.7 134.4 129.6 132.1 132.0 129.7 135.4 130.4 133.3 132.9 130.4 136.7 131.0 134.5 .7 .5 1.0 .5 .9 2.9 3.1 2.9 3.1 2.8 Nonunion......................................................................... Goods-producing ........................................................... Service-producing.......................................................... Manufacturing ............................................................... Nonmanufacturing ......................................................... 129.4 127.0 130.8 128.5 129.8 130.3 127.8 131.7 129.5 130.6 131.8 128.8 133.6 130.6 132.4 132.8 129.6 134.6 131.5 133.4 134.3 131.1 136.2 133.0 134.9 135.0 132.1 136.7 133.9 135.4 136.4 133.6 138.0 135.5 136.8 138.1 135.0 140.0 136.7 138.8 139.5 135.7 141.8 137.4 140.4 1.0 .5 1.3 .5 1.2 3.9 3.5 4.1 3.3 4.1 132.3 128.8 125.3 129.3 133.1 129.4 126.2 130.1 135.4 130.1 127.4 131.2 136.6 131.1 128.5 131.1 138.3 132.1 129.6 133.1 139.7 133.0 129.9 133.5 140.9 134.0 131.3 134.9 142.9 136.1 132.1 136.0 144.6 137.1 133.3 137.4 1.2 .7 .9 1.0 4.6 3.8 2.9 3.2 129.4 125.0 130.2 125.6 131.6 126.6 132.4 127.8 133.7 129.1 134.6 129.8 135.8 130.9 137.3 133.0 138.7 133.5 1.0 .4 3.7 3.4 Workers, by region ' Northeast......................................................................... South .............................................................................. Midwest (formerly North Central)....................................... West................................................................................ Workers, by area size 1 Metropolitan areas ........................................................... Other areas...................................................................... WAGES AND SALARIES Workers, by bargaining status ' Workers, by region ' Northeast......................................................................... South .............................................................................. Midwest (formerly North Central)....................................... West................................................................................ Workers, by area size1 Metropolitan areas........................................................... Other areas..................................................................... 1 The indexes are calculated differently from those for the occupation and industry groups. For a detailed description of the index calculation, see the Digitized for84 FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M onthly 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 Measure IIP Specified adjustments: Total compensation 1 adjustments,2 settlements covering 5,000 workers or more: First year of contract..................................... Annual rate over life of contract..................... Wage adjustments, settlements covering 1,000 workers or more: First year of contract.................................. Annual rate over life of contract.................. Effective adjustments: Total effective wage adjustment3 ................. From settlements reached in period ........... Deferred from settlements reached in earlier periods..................................................... From cost-of-living-adjustments clauses...... 1.1 1.6 3.0 2.6 2.7 2.4 1.1 2.1 4.1 3.9 2.5 2.1 3.4 2.4 1.8 1.8 3.3 2.4 3.4 3.3 1.2 2.2 2.1 2.0 2.1 .8 1.8 1.6 26 2.9 2.1 2.0 2.4 1.8 2.1 2.3 2.6 2.2 2.7 2.9 2.3 .5 3.1 .7 1.7 .2 1.0 .2 .9 .2 -8 .3 .4 .1 .9 -3 1.8 7 .6 .3 .3 .5 .4 .5 .2 .1 -2 -1 -1 -2 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 .8 .2 compensation or wages. 3 Because of rounding, total may not equal sum of parts. 4 Between -0.05 and 0.05 percent. p = preliminary. 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 endingMeasure 1988 1987 1986 IV MF IF F IV III II I Specified total compensation adjustments, settlements covering 5,000 workers or more, all industries: 1.1 1.6 1.2 1.7 1.8 2.1 2.7 2.6 3.0 2.6 3.1 2.5 3.0 2.3 3.2 2.5 1.2 1.9 .9 1.8 1.7 1.8 1.2 2.0 .8 1.8 1.8 1.8 1.5 1.8 1.3 2.0 1.7 2.1 2.0 2.1 2.0 2.2 1.7 2.5 2.2 2.3 2.1 2.1 1.5 2.5 2.4 2.2 2.5 2.2 1.4 2.7 2.4 2.4 2.4 2.0 1.5 2.5 2.5 2.4 2.6 2.2 1.5 2.8 -1.2 1.3 -2.8 .2 .9 -.2 -1.5 1.3 -3.5 (2) .8 -.6 -.8 1.3 -2.7 .3 .8 -.2 1.1 2.1 -.1 1.0 1.0 1.2 2.1 2.4 1.3 1.3 1.0 2.1 2.4 2.4 2.4 1.5 1.0 2.7 2.5 2.5 2.5 1.6 1.3 2.5 2.5 2.4 3.0 1.9 1.4 3.1 2.0 2.1 2.0 2.3 2.1 2.4 2.2 2.2 2.1 2.4 2.2 2.5 2.3 2.1 2.3 2.6 2.2 2.7 2.4 2.1 2.6 2.8 2.4 2.9 2.3 1.9 2.4 2.7 2.7 2.7 2.3 1.6 2.5 2.7 2.4 2.7 2.3 2.2 2.4 2.3 1.9 2.6 2.5 2.4 2.5 2.5 1.8 2.7 2.2 1.4 2.3 2.5 1.6 2.5 2.4 1.6 2.4 2.5 1.4 2.6 2.7 3.7 2.7 2.9 3.8 2.9 Specified wage adjustments, settlements covering 1,000 workers or more: All industries Manufacturing Nonmanufacturing Construction Data do not meet publication standards. Between -0.05 and 0.05 percent. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis p = preliminary. (') 0) 3.2 0) (1) (1) (1) (1) O 3.1 (1) (1) 2.1 2.6 2.9 2.9 3.0 (1) (’) 0 (’) 3.1 (') 0 2.7 (1) (1) (') (1) 2.4 M O N T H L Y LABOR R E V IE W February 1989 Current Labor Statistics: Compensation & Industrial Relations • 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 endingEffective wage adjustment 1987 1988 I II III IV F IP IIP 2.0 .3 1.5 .1 2.2 .3 1.6 .3 2.6 .4 1.7 .4 3.1 .7 1.8 .5 3.2 .8 1.8 .5 3.0 1.0 1.6 .5 2.8 .9 1.4 .5 2.4 1.1 3.7 .6 2.8 .9 3.5 1.8 3.2 1.8 3.3 2.3 3.6 2.9 3.3 2.6 3.8 2.9 3.3 2.7 3.7 2.9 3.3 2.3 3.5 2.9 3.0 2.5 For all workers:1 Total................................................. From settlements reached in period ........ Deferred from settlements reached in earlier period ......... From cost-of-living-adjustments clauses............................. For workers receiving changes: Total......................................................... From settlements reached in period .......................... Deferred from settlements reached in earlier period ................ From cost-of-living-adjustments clauses................................... 1 Because of rounding, total may not equal sum of parts. p = 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 1986 1987 First 6 months 1988 62 6.0 49 4.8 5.5 57 5.7 49 5.1 54 5.1 5.5 2.4 3.0 (4) 4.9 2.7 2.2 (4) .9 .4 .5 (4) Measure Specified adjustments: Total compensation 1 adjustments, 2 settlements covering 5,000 workers or more: First year of contract ............................................................................................................. Annual rate over life of contract ........................................................................................................... Wage adjustments, settlements covering 1,000 workers or more: First year of contract ................................................................................................... Annual rate over life of contract.................................................................................................................. Effective adjustments: Total effective wage adjustment 3 ....................................................................................................................... From settlements reached in period........................................................................................................ Deferred from settlements reached In earlier periods ....................................................................................... From cost-of-living-adjustment clauses.............................................................................................................. 1 Compensation In' des 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. Because of rounding, total may not equal sum of parts. Less than 0.05 percent. 29. Work stoppages involving 1,000 workers or more Annua totals 1987 Measure 1986 1987 Nov. Number of stoppages: Beginning in period................... In effect during period............... 69 72 Workers involved: Beginning in period (in thousands).............................. In effect during period (in thousands).............................. 533.0 174.4 11.8 899.5 377.7 22.2 Days idle: Number (In thousands).............. 11,861.0 Percent of estimated working time1 ................................. .05 4,455.6 222.9 .02 .01 46 51 1988P Dec. 6 11 Jan. 0 5 Feb. Apr. May June July Aug Sept. Oct. Nov. 3 6 5 8 1 6 0 6 3 8 3 10 12 16 12 .0 7.2 17.5 6.7 .0 10.3 7.8 24.6 11.6 1.4 8.6 2.3 8.9 10.8 21.1 24.2 14.9 18.2 20.0 36.4 35.8 27.9 21.4 10.6 159.4 36.6 337.0 203.6 207.9 271.4 264.5 605.0 656.3 411.9 240.0 77.9 .01 .01 .01 .01 .01 .01 .01 .02 .03 .02 .01 (2) ................ .......... ........................ " v^i..K . w j r w o a i c II i u i u u u u 111 u 1C l U ld l tJ M ip iu y tJ U clIIU lU ia i working time: private household, forestry, and fishery employees are excluded. An expla nation of the measurement of idleness as a percentage of the total time worked is found In “ Total economy’ measure of strike idleness,” Monthly Labor Review, October 1968, Digitized for86 FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Mar. pp. 54-56. 2 Less than .005 percent. p = preliminary 8 5 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 1988 1987 Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 118.3 354.3 115.4 345.7 115.7 346.7 116.0 347.4 116.5 349.0 117.1 350.8 117.5 352.0 118.0 353.5 118.5 354.9 119.0 356.6 119.8 358.9 120.2 360.1 120.3 360.5 120.5 360.9 113.5 113.5 111.9 114.8 110.5 105.9 119.1 110.5 111.0 108.1 107.5 113.8 117.0 114.1 118.2 118.2 116.6 122.1 114.3 108.4 128.1 113.1 114.0 113.1 107.5 118.0 121.8 118.6 114.8 114.7 112.8 116.8 110.3 106.7 123.4 110.0 111.0 107.7 104.8 115.0 118.9 115.4 115.7 115.7 114.1 118.1 111.0 107.4 126.4 111.3 112.2 108.5 106.9 115.9 119.3 115.8 115.8 115.7 113.9 118.7 110.6 107.3 124.7 111.8 112.2 109.5 107.7 116.1 119.7 116.8 116.0 115.9 113.9 118.9 111.2 107.2 123.0 112.0 112.6 110.3 107.7 116.3 120.2 117.4 116.7 116.6 114.6 119.8 111.5 107.1 126.0 112.1 112.3 110.3 107.8 116.6 120.7 118.0 117.1 117.0 115.1 120.3 112.1 107.4 127.1 112.3 112.5 111.2 107.5 117.0 121.0 118.2 117.6 117.6 115.8 120.8 114.6 107.2 126.1 112.4 113.3 111.5 107.1 117.1 121.5 118.7 118.8 118.8 117.3 122.1 116.5 107.6 129.0 113.1 114.0 112.6 107.2 118.3 122.1 119.2 119.4 119.4 118.1 124.0 117.3 108.2 129.9 113.6 114.8 114.9 107.0 118.7 122.5 119.3 120.1 120.2 119.0 124.7 117.4 108.9 133.2 114.0 115.6 115.9 107.4 119.1 123.0 119.6 120.3 120.3 119.0 125.6 116.8 109.9 131.7 114.8 116.0 117.1 108.1 119.9 123.4 119.8 120.2 120.2 118.7 125.9 116.4 110.6 129.5 114.9 115.9 117.1 108.2 120.1 123.7 119.9 120.6 120.7 119.1 126.6 116.1 111.4 131.0 115.3 116.7 118.5 107.8 120.7 124.1 119.9 114.2 121.3 128.1 123.1 127.4 124.8 124.8 124.0 111.8 114.8 107.8 103.0 97.3 77.9 103.8 120.1 107.1 103.6 111.5 110.6 118.5 127.1 133.6 127.8 134.8 131.1 131.1 129.0 114.7 117.9 110.4 104.4 98.0 78.1 104.6 122.9 109.4 105.1 114.7 114.3 115.6 123.7 129.1 125.6 124.1 128.0 128.0 126.2 113.3 116.6 109.1 102.0 95.1 80.5 100.9 120.9 107.3 103.3 112.5 111.4 116.2 124.6 130.8 126.0 129.4 128.5 128.6 126.9 113.7 117.4 108.7 102.4 95.6 80.8 101.5 121.3 107.5 103.5 113.1 111.5 116.6 125.0 131.3 126.3 130.4 129.0 129.0 127.1 114.3 117.9 109.5 102.8 96.0 80.9 101.9 121.8 107.7 103.7 113.2 111.6 117.0 125.6 132.9 126.4 136.6 129.2 129.2 127.8 113.3 116.4 109.2 102.7 95.8 80.5 101.7 121.7 108.3 104.7 112.9 111.7 117.3 125.8 132.9 126.6 136.0 129.4 129.5 128.2 115.3 119.4 109.7 102.8 95.7 80.2 101.6 122.3 109.1 104.9 113.8 114.7 117.7 126.2 133.1 126.9 135.7 129.9 130.0 128.2 114.3 117.8 109.8 103.5 96.5 80.0 102.6 122.6 109.3 104.9 114.1 114.8 118.6 126.6 133.7 127.3 137.0 130.4 130.4 128.9 114.7 118.1 110.1 105.9 100.8 79.1 107.8 122.3 109.6 105.3 114.7 114.8 119.1 127.4 134.7 127.8 139.2 131.0 131.1 129.7 114.5 117.9 110.1 106.0 100.8 76.9 108.1 122.4 109.8 105.5 115.2 115.0 119.5 128.2 135.6 128.4 141.3 131.8 131.9 130.1 115.0 118.1 110.8 106.1 100.9 76.3 108.3 122.6 109.7 105.3 114.8 115.1 119.9 128.4 134.7 129.1 135.5 132.6 132.7 130.2 115.3 118.1 111.7 106.4 101.0 75.9 108.5 123.3 110.1 105.7 115.5 115.5 119.9 128.8 134.8 129.4 134.8 133.1 133.1 130.4 115.0 117.6 111.6 105.4 98.6 74.6 105.8 124.5 110.3 105.9 115.6 115.5 119.9 129.1 134.2 129.8 131.1 133.8 133.9 130.2 115.4 118.2 111.7 104.3 96.8 75.0 103.7 124.4 110.6 106.1 116.5 115.7 120.2 129.3 134.1 130.1 130.0 134.0 134.1 130.6 115.8 118.4 112.4 105.0 97.4 76.8 104.1 125.5 110.6 105.9 117.0 115.9 Other apparel commodities...................................................... Apparel services.......................................................................... 110.6 108.9 109.1 110.4 112.1 105.1 108.0 119.6 115.4 113.7 113.4 114.9 116.4 109.9 116.0 123.7 112.7 111.0 110.7 112.6 114.5 107.2 111.3 121.4 110.4 108.6 109.0 108.2 113.6 106.1 112.9 121.6 110.2 108.3 109.1 107.8 111.4 105.8 113.1 122.0 114.3 112.7 111.6 115.3 114.0 107.3 113.6 122.2 117.0 115.5 112.9 119.6 117.1 109.4 114.6 122.6 116.3 114.8 113.6 117.3 117.7 109.7 114.9 122.8 114.6 112.9 112.5 114.1 116.5 109.2 114.6 123.1 112.7 110.8 111.9 109.8 116.2 108.2 116.5 123.4 112.6 110.7 111.6 109.9 118.2 107.4 116.2 124.0 117.8 116.2 115.2 118.1 119.0 112.2 117.4 124.4 120.7 119.3 117.6 121.9 118.1 115.9 119.4 125.5 119.9 118.4 118.2 120.2 117.2 114.5 119.5 126.3 118.0 116.3 117.3 116.5 117.3 113.5 119.1 126.7 Transportation ............................................................................... Private transportation.................................................................. New vehicles............................................................................. New ca rs................................................................................ Used c a rs ................................................................................. Motor fuel ................................................................................. Gasoline................................................................................. Maintenance and repair............................................................ Other private transportation..................................................... Other private transportation commodities............................. Other private transportation services.................................... Public transportation ................................................................... 105.4 104.2 114.4 114.6 113.1 80.2 80.1 114.8 120.8 96.9 125.6 121.1 108.7 107.6 116.5 116.9 118.0 80.9 80.8 119.7 127.9 98.9 133.9 123.3 107.6 106.5 116.4 116.6 116.3 82.0 81.8 116.9 123.8 97.5 129.2 122.1 107.1 106.0 116.1 116.2 116.0 79.7 79.5 117.2 124.7 98.2 130.1 121.8 106.8 105.7 116.0 116.2 116.0 78.3 78.1 117.7 125.0 98.1 130.6 120.8 106.5 105.4 115.7 116.0 116.1 77.5 77.3 118.5 124.9 98.3 130.3 121.4 107.2 106.0 115.6 115.9 116.6 79.4 79.2 118.8 125.0 98.2 130.5 122.4 108.1 107.0 115.9 116.3 117.0 81.4 81.3 119.3 126.3 98.9 132.0 122.4 108.5 107.4 116.1 116.5 117.6 81.4 81.3 119.7 127.2 98.8 133.1 123.2 108.9 107.8 116.1 116.5 117.9 82.3 82.3 120.0 127.5 98.2 133.7 123.7 109.6 108.6 115.9 116.3 119.2 84.1 84.2 120.3 128.7 99.2 134.8 123.7 109.7 108.6 116.2 116.8 119.4 83.1 83.1 120.9 129.3 99.7 135.5 124.0 110.0 109.0 117.2 117.7 119.9 81.6 81.6 121.1 131.0 99.3 137.7 124.2 110.7 109.6 118.4 118.7 119.7 81.5 81.4 121.5 132.1 99.4 139.1 125.3 110.8 109.6 119.0 119.1 120.2 80.3 80.3 121.5 132.5 100.3 139.3 126.5 Medical ca re .................................................................................. Medical care commodities .......................................................... Medical care services................................................................. Professional services................................................................ Hospital and related services .................................................. 130.1 131.0 130.0 128.8 131.6 138.6 139.9 138.3 137.5 143.9 133.1 134.9 132.7 131.8 135.9 134.4 135.4 134.1 133.2 137.6 135.5 136.1 135.3 134.5 139.0 136.3 137.0 136.1 135.4 140.0 136.9 138.1 136.6 136.0 140.7 137.5 139.0 137.2 136.4 141.8 138.2 139.4 137.9 137.5 142.1 139.3 140.5 139.0 138.4 144.3 139.9 141.1 139.6 138.7 145.9 140.4 142.0 140.1 139.2 146.9 141.2 143.2 140.8 139.8 148.5 141.8 143.3 141.5 140.4 149.7 142.3 144.2 141.9 140.8 150.8 Entertainment ................................................................................ Entertainment commodities ........................................................ Entertainment services ,............................................................... 115.3 110.5 122.0 120.3 115.0 127.7 117.4 112.6 124.3 118.1 112.9 125.4 118.3 112.9 125.7 119.0 113.4 126.5 119.6 114.2 127.0 119.7 114.5 126.9 120.1 114.8 127.3 120.5 115.3 127.7 120.7 115.4 128.1 121.3 116.0 128.6 121.8 116.3 129.4 122.2 117.2 129.3 122.8 117.5 130.0 Other goods and services ............................................................. Tobacco products ....................................................................... Personal care.............................................................................. Toilet goods and personal care appliances............................ Personal care services ............................................................ Personal and educational expenses.......................................... School books and supplies..................................................... Personal and educational services......................................... 128.5 133.6 115.1 113.9 116.2 138.5 138.1 138.7 137.0 145.8 119.4 118.1 120.7 147.9 148.1 148.0 132.1 137.0 116.5 115.0 117.9 143.4 142.4 143.6 133.4 140.8 117.3 116.1 118.4 143.9 144.6 144.0 134.2 142.2 117.8 116.4 119.1 144.7 146.3 144.8 134.6 142.8 118.1 116.8 119.2 145.0 146.2 145.1 134.8 142.9 118.5 117.4 119.5 145.2 146.3 145.3 135.1 143.2 118.7 117.2 120.1 145.5 146.4 145.6 135.5 143.6 119.0 117.5 120.4 146.0 146.5 146.2 136.5 147.5 119.2 117.8 120.6 146.3 146.5 146.5 137.5 148.6 119.0 117.2 121.0 147.8 146.9 148.1 140.0 148.9 120.3 118.7 121.9 151.8 151.1 152.1 140.6 149.3 121.0 119.8 122.0 152.4 152.0 152.7 141.0 149.7 121.8 120.7 122.7 152.7 152.1 152.9 141.3 149.9 122.4 121.6 123.1 153.0 152.2 153.2 1987 1988 113,6 340.4 CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS: All Items (1967-100) ...................................................................... Food and beverages ..................................................................... Food at home ........................................................................... Cereals and bakery products................................................ Meats, poultry, fish, and eggs................................................ Dairy products........................................................................ Fruits and vegetables............................................................. Other foods at home.............................................................. Sugar and sweets................................................................ Fats and o ils ........................................................................ Nonalcoholic beverages...................................................... Other prepared foods.......................................................... Food away from home ............................................................. Alcoholic beverages.................................................................... Housing .......................................................................................... Renters’ costs (12/82 = 100).................................................. Rent, residential..................................................................... Other renters’ c o s ts ............................................................... Homeowners’ costs (12/82 = 100)........................................... Owners’ equivalent rent (1 2 /8 2 -1 0 0 ).................................. Household Insurance (12/82 = 100)...................................... Maintenance and repairs.......................................................... Maintenance and repair services .......................................... Maintenance and repair commodities................................... Fuel and other utilities................................................................ Fuel oil, coal, and bottled gas ............................................... Gas (piped) and electricity .................................................... Other utilities and public services ............................................ Household furnishings and operations....................................... Housefurnishings ...................................................................... Housekeeping supplies............................................................. Housekeeping services............................................................. Apparel and upkeep ...................................................................... Apparel commodities .................................................................. Men's and boys' apparel.......................................................... Women’s and girls' apparel ..................................................... Infants' and toddlers' apparel.................................................. See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 87 M O N T H L Y LABOR R E V IE W February 1989 • 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 Annual average 1987 1988 1987 1988 Dec. Jan. Feb. Mar. Apr. May June July Aug. Apparel commodities.................................................................. Men’s and boys’ apparel.......................................................... Women’s and girls’ apparel ..................................................... Infants’ and toddlers’ apparel.................................................. Footwear.................................................................................. Other apparel commodities...................................................... Apparel services.......................................................................... 108.8 108.5 110.3 114.0 105.5 107.4 119.2 113.4 112.8 114.5 118.6 110.4 114.9 123.0 111.1 110.4 112.6 116.4 108.0 110.6 120.9 108.6 108.6 108.2 115.2 106.8 112.2 121.1 108.3 108.7 107.9 113.3 106.4 112.0 121.5 112.4 111.1 114.9 116.0 107.7 112.8 121.6 114.9 112.2 118.8 119.1 109.6 113.9 122.0 114.3 113.0 116.7 119.7 109.9 114.0 122.2 112.6 112.1 113.5 118.8 109.6 113.5 122.4 110.6 111.5 109.5 118.6 108.7 115.2 122.7 110.5 111.0 109.5 120.4 108.0 114.9 123.3 Transportation ................................................................................ Private transportation.................................................................. New vehicles............................................................................. New ca rs................................................................................ Used cars ................................................................................. Motor fuel ................................................................................. Gasoline................................................................................. Maintenance and repair............................................................ Other private transportation..................................................... Other private transportation commodities............................. Other private transportation services.................................... Public transportation................................................................... 105.1 104.1 114.0 114.3 113.1 80.3 80.2 115.1 119.0 96.7 123.4 120.4 108.3 107.5 116.2 116.6 117.9 80.9 80.8 119.8 125.8 98.6 131.7 122.5 107.3 106.4 116.1 116.3 116.2 82.0 81.9 117.0 122.0 97.4 127.1 121.3 106.8 105.9 115.8 115.9 115.9 79.7 79.5 117.4 122.9 98.1 128.0 121.2 106.4 105.6 115.7 116.0 116.0 78.3 78.1 117.8 123.2 98.0 128.5 120.4 106.2 105.3 115.3 115.7 116.1 77.5 77.3 118.6 123.1 98.1 128.2 120.8 106.8 105.9 115.3 115.7 116.6 79.4 79.2 118.9 123.0 97.9 128.3 121.7 107.8 107.0 115.6 116.0 116.9 81.4 81.3 119.4 124.3 98.6 129.7 121.8 108.2 107.3 115.8 116.2 117.5 81.4 81.3 119.8 125.2 98.5 130.8 122.3 108.6 107.7 115.8 116.2 117.8 82.3 82.3 120.1 125.4 97.9 131.3 123.0 Medical c a re .................................................................................. Medical care commodities .......................................................... Medical care services.................................................................. Professional services ................................................................ Hospital and related services................................................... 130.2 130.2 130.3 129.0 131.1 139.0 139.0 139.0 137.7 143.3 133.4 134.1 133.2 132.0 135.4 134.6 134.7 134.6 133.4 136.9 135.8 135.4 135.8 134.7 138.4 136.5 136.1 136.6 135.5 139.3 137.1 137.2 137.1 136.1 140.1 137.8 138.0 137.7 136.6 141.2 138.5 138.3 138.5 137.7 141.5 Entertainment ................................................................................. Entertainment commodities ........................................................ Entertainment services................................................................ 114.8 110.6 121.8 119.7 115.1 127.2 116.9 112.6 124.0 117.4 112.8 124.9 117.6 112.9 125.2 118.2 113.5 126.0 118.9 114.2 126.5 119.0 114.6 126.3 Other goods and services ............................................................. Tobacco products ....................................................................... Personal care............................................................................... Toilet goods and personal care appliances............................. Personal care services ............................................................. Personal and educational expenses........................................... School books and supplies...................................................... Personal and educational services.......................................... 127.8 133.7 115.0 113.9 116.1 138.2 137.9 138.4 136.5 146.0 119.3 118.0 120.5 147.4 147.1 147.7 131.3 137.2 116.4 115.1 117.8 143.0 141.9 143.3 132.7 141.0 117.1 116.0 118.3 143.4 143.9 143.6 133.6 142.3 117.5 116.2 118.9 144.3 145.3 144.5 134.0 143.0 117.7 116.5 119.0 144.6 145.2 144.8 134.2 143.1 118.1 117.0 119.3 144.7 145.4 144.9 All items ................................................................................ Commodities..................................................................... Food and beverages................................................................... Commodities less food and beverages...................................... Nondurables less food and beverages .................................... Apparel commodities.............................................................. Nondurables less food, beverages, and apparel .................. Durables........................................................................ 112.5 107.3 113.3 103.6 100.8 108.8 99.2 106.6 117.0 111.0 117.9 106.8 104.6 113.4 102.9 108.9 114.2 108.9 114.5 105.4 102.8 111.1 101.2 108.0 114.5 108.8 115.4 104.7 101.7 108.6 100.8 107.9 114.7 108.7 115.5 104.5 101.4 108.3 100.5 107.9 115.1 109.3 115.7 105.3 102.7 112.4 100.4 108.0 Services.................................................................... Rent of shelter (12/84 —100)........................................... Household services less rent of shelter (12/84 = 100).............. Transportation services................................................. Medical care services.................................................................. Other services .................................................................. 119.4 114.0 104.0 120.8 130.3 124.7 124.7 119.4 105.9 127.1 139.0 131.4 121.3 116.4 103.1 123.6 133.2 127.9 122.0 117.1 103.5 124.1 134.6 128.5 122.5 117.5 103.9 124.4 135.8 129.0 Special indexes: All items less food ...................................... All items less shelter........................................................ All items less homeowners’ costs (12/84 = 100)....................... All items less medical care..................................... Commodities less fo o d ......................................................... Nondurables less food .................................................... Nondurables less food and apparel ........................................... Nondurables.............................................................................. Services less rent of shelter (12/84 = 100)........................... Services less medical c a re ........................................................ Energy...................................................................... All items less energy ................................................................. All items less food and energy .................................................. Commodities less food and energy............................................ Energy commodities .......................................................... Services less energy................................................................. 112.2 111.0 106.4 111.5 103.9 101.4 100.0 107.2 110.8 118.2 88.0 116.0 116.8 110.8 80.3 121.2 116.7 115.2 110.4 115.8 107.2 105.3 103.7 111.5 115.6 123.3 88.6 121.0 121.9 114.7 80.9 127.0 114.1 112.5 107.8 113.2 105.6 103.3 101.8 108.8 112.2 120.1 87.8 118.0 119.0 112.6 82.1 123.7 114.2 112.7 108.0 113.4 105.0 102.4 101.5 108.8 112.8 120.7 86.8 118.5 119.3 112.3 80.0 124.3 89.0 29.9 85.5 28.7 87.5 29.4 87.3 29.3 Purchasing power of the consumer dollar: 1982-84 = $1.00......................................................... 1967 = $1.00.................................................................. Digitized for88 FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Sept. Oct. Nov. Dec. 115.8 114.4 117.6 121.5 112.7 116.2 123.7 118.9 116.9 121.5 120.6 116.3 117.9 124.7 118.1 117.5 119.9 120.1 115.0 118.2 125.4 116.0 116.5 116.2 120.3 114.0 117.8 125.8 109.4 108.6 115.5 116.0 119.0 84.3 84.3 120.5 126.5 98.8 132.5 123.0 109.4 108.6 115.8 116.4 119.2 83.1 83.2 121.0 127.2 99.3 133.2 123.1 109.8 109.0 116.9 117.5 119.8 81.6 81.6 121.3 128.9 98.8 135.5 123.5 110.3 109.5 118.1 118.5 119.5 81.5 81.5 121.5 130.0 99.0 136.8 124.3 110.4 109.5 118.8 118.9 120.1 80.4 80.4 121.5 130.4 99.9 137.1 125.4 139.6 139.4 139.6 138.5 143.8 140.3 140.0 140.3 138.9 145.4 140.8 141.0 140.8 139.3 146.3 141.7 142.1 141.6 139.9 147.8 142.2 142.2 142.2 140.6 148.9 142.8 143.1 142.7 141.0 150.0 119.4 114.9 126.8 119.8 115.4 127.2 120.1 115.5 127.6 120.6 116.0 128.1 121.2 116.5 128.9 121.7 117.3 129.0 122.2 117.6 129.7 134.5 143.4 118.5 117.1 119.9 145.2 145.4 145.4 135.0 143.8 118.8 117.4 120.2 145.8 145.6 146.0 136.3 147.9 119.1 117.8 120.4 146.0 145.6 146.3 137.2 148.9 119.0 117.4 120.7 147.4 146.0 147.8 139.3 149.2 120.3 118.8 121.9 151.1 150.0 151.5 139.9 149.5 120.9 119.9 122.0 151.7 150.8 152.0 140.3 149.9 121.7 120.6 122.7 152.0 150.9 152.3 140.6 150.2 122.3 121.5 123.0 152.3 151.1 152.7 115.7 110.1 116.3 106.3 104.3 114.9 101.6 108.1 116.2 110.5 116.8 106.7 104.8 114.3 102.6 108.4 116.7 110.7 117.4 106.5 104.3 112.6 102.8 108.7 117.2 111.1 118.5 106.6 104.3 110.6 103.7 108.8 117.7 111.6 119.1 107.0 104.9 110.5 104.7 108.8 118.5 112.5 119.8 108.1 106.6 115.8 104.7 109.1 118.9 113.0 120.0 108.7 107.2 118.9 104.1 109.7 119.0 113.1 119.9 108.9 107.1 118.1 104.3 110.4 119.2 113.0 120.3 108.6 106.3 116.0 104.1 110.7 122.8 118.0 103.8 124.5 136.6 129.5 123.1 118.2 104.4 124.8 137.1 129.8 123.6 118.5 104.9 125.8 137.7 130.0 124.5 119.0 107.2 126.6 138.5 130.5 125.1 119.6 107.4 127.1 139.6 130.8 125.7 120.3 107.6 127.8 140.3 131.6 126.3 120.7 108.0 128.4 140.8 133.6 126.7 121.1 107.2 129.9 141.6 134.2 126.9 121.4 106.2 130.9 142.2 134.5 127.2 121.5 106.8 131.2 142.7 135.0 114.4 112.8 108.1 113.6 104.9 102.2 101.4 108.7 113.2 121.1 86.3 118.7 119.6 112.4 78.7 124.8 115.0 113.2 108.6 114.0 105.7 103.4 101.4 109.4 113.4 121.4 85.8 119.3 120.3 113.5 77.9 125.2 115.5 113.9 109.2 114.6 106.6 104.9 102.5 110.5 113.9 121.7 86.7 119.9 120.8 114.3 79.7 125.6 116.0 114.4 109.7 115.0 107.0 105.4 103.4 111.0 114.4 122.2 88.1 120.2 121.1 114.4 81.5 126.0 116.5 115.0 110.2 115.6 106.9 105.0 103.6 111.1 115.7 123.1 90.3 120.5 121.4 114.3 81.4 126.5 116.8 115.4 110.7 116.0 107.0 105.1 104.5 111.6 116.1 123.6 90.7 121.0 121.7 114.2 82.1 127.1 117.3 115.9 111.1 116.6 107.3 105.6 105.3 112.3 116.6 124.3 91.8 121.5 122.2 114.3 83.8 127.8 118.1 116.8 111.9 117.3 108.4 107.2 105.3 113.4 117.3 124.9 91.3 122.4 123.1 115.8 82.7 128.4 118.6 117.2 112.2 117.7 109.0 107.8 104.9 113.8 117.6 125.2 89.3 123.1 124.0 116.9 81.2 129.1 118.8 117.3 112.3 117.8 109.2 107.6 105.1 113.7 117.6 125.3 88.4 123.4 124.3 117.1 81.2 129.5 118.8 117.4 112.4 117.9 108.9 106.9 104.9 113.5 118.1 125.6 88.1 123.6 124.4 117.0 80.3 129.8 87.2 29.3 86.8 29.2 86.4 29.0 86.1 28.9 85.7 28.8 85.3 28.6 84.9 28.5 84.4 28.3 84.1 28.2 84.0 28.2 83.9 28.2 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 Annual average 1988 1987 Oct. Nov. Dec. 119.8 113.0 120.1 108.5 107.1 116.2 104.9 110.6 120.2 113.5 120.3 109.2 107.8 119.3 104.5 111.1 120.3 113.5 120.2 109.4 107.7 118.4 104.6 111.8 120.5 113.5 120.6 109.0 106.9 116.3 104.5 112.2 126.7 133.1 117.0 128.8 139.6 132.8 127.3 133.4 117.4 129.3 140.1 134.9 127.6 133.8 116.6 130.6 140.8 135.5 127.8 134.1 115.6 131.6 141.5 135.7 128.1 134.3 116.2 132.1 141.9 136.2 118.4 116.1 119.8 117.2 107.4 105.4 104.8 111.9 128.9 124.7 91.4 122.3 123.3 115.2 81.9 128.0 118.9 116.5 120.3 117.8 107.7 105.9 105.5 112.4 129.4 125.3 92.3 122.8 123.8 115.2 83.4 128.8 119.7 117.5 121.1 118.6 108.9 107.7 105.6 113.7 130.3 125.9 91.9 123.8 124.7 116.9 82.5 129.3 120.2 117.9 121.5 118.9 109.5 108.3 105.2 114.2 130.5 126.2 89.9 124.4 125.5 118.0 81.0 129.9 120.3 118.0 121.5 119.0 109.7 108.2 105.4 114.1 130.6 126.3 88.9 124.7 125.8 118.2 80.9 130.3 120.4 118.1 121.6 119.1 109.4 107.5 105.3 113.9 131.1 126.6 88.7 124.8 126.0 118.0 80.1 130.6 84.7 28.3 84.4 28.2 84.0 28.0 83.5 27.9 83.2 27.8 83.1 27.7 83.0 27.7 116.2 346.1 116.7 347.6 117.2 349.1 117.7 350.7 118.5 353.0 118.9 354.2 119.0 354.6 119.2 355.0 116.3 116.2 114.2 119.9 111.4 106.9 125.2 112.0 112.2 110.2 107.9 116.4 120.6 117.9 116.8 116.7 114.7 120.4 112.0 107.2 126.4 112.2 112.4 111.0 107.7 116.8 120.9 118.0 117.4 117.3 115.5 120.8 114.5 107.0 125.5 112.3 113.1 111.4 107.3 116.9 121.4 118.4 118.5 118.5 116.9 122.1 116.3 107.3 128.4 113.0 113.9 112.5 107.4 118.1 122.0 118.9 119.1 119.2 117.8 124.1 117.1 107.9 129.6 113.5 114.8 114.8 107.2 118.5 122.3 118.9 119.8 119.9 118.7 124.8 117.3 108.6 132.8 113.9 115.6 115.8 107.6 118.8 122.8 119.2 120.0 120.1 118.7 125.7 116.6 109.7 131.4 114.7 115.9 117.0 108.3 119.7 123.2 119.5 119.9 119.9 118.4 126.0 116.1 110.4 129.1 114.8 115.7 117.0 108.4 119.9 123.5 119.5 120.3 120.4 118.8 126.7 115.8 111.2 130.8 115.1 116.7 118.3 107.8 120.5 124.0 119.5 115.4 122.9 118.4 126.2 136.9 117.8 117.8 117.2 112.8 116.6 107.1 102.3 95.4 80.2 101.4 121.7 107.8 104.1 113.4 111.9 115.6 123.0 118.4 126.3 136.1 118.0 118.0 117.3 114.7 119.8 107.5 102.5 95.4 79.9 101.4 122.3 108.7 104.2 114.3 115.6 116.0 123.4 118.6 126.6 136.2 118.4 118.5 117.3 113.7 117.6 107.9 103.0 96.1 79.7 102.2 122.5 108.8 104.2 114.5 115.7 116.9 123.9 119.3 126.9 138.8 118.8 118.8 118.0 113.9 117.9 107.9 105.5 100.5 78.9 107.5 122.2 109.1 104.6 115.1 115.7 117.4 124.5 120.0 127.5 140.8 119.4 119.5 118.6 113.8 117.6 108.0 105.6 100.5 76.7 107.8 122.4 109.4 104.9 115.5 115.9 117.8 125.3 120.7 128.0 143.0 120.2 120.2 119.0 114.2 118.0 108.3 105.8 100.6 76.2 108.0 122.5 109.1 104.5 115.1 116.0 118.2 125.6 120.2 128.7 136.1 120.9 120.9 119.1 114.4 117.7 109.1 106.1 100.8 75.9 108.2 123.3 109.6 105.1 115.8 116.3 118.2 126.0 120.4 129.0 135.1 121.3 121.4 119.3 114.1 117.0 109.2 105.1 98.3 74.6 105.5 124.7 109.9 105.4 116.1 116.3 118.3 126.4 120.1 129.4 131.4 122.0 122.1 119.2 114.6 117.6 109.7 104.1 96.6 75.0 103.5 124.6 110.2 105.6 116.9 116.4 118.5 126.5 120.0 129.7 129.2 122.2 122.2 119.6 115.2 117.8 110.6 104.8 97.2 76.7 103.9 125.6 110.2 105.4 117.4 116.5 113.9 116.3 115.7 114.1 112.4 112.2 117.2 120.1 119.5 117.6 Dec. Jan. Feb. Mar. Apr. May June July Aug. 118.3 111.5 118.2 107.3 105.2 113.7 103.2 110.4 115.4 109.3 114.8 105.7 103.1 111.0 101.5 109.5 115.7 109.2 115.7 105.1 102.1 108.6 101.2 109.4 116.0 109.1 115.8 105.0 101.9 108.3 101.0 109.4 116.5 109.8 116.0 105.9 103.4 112.7 101.0 109.5 117.1 110.7 116.7 106.9 105.0 115.5 102.0 I09.7 117.5 111.1 117.1 107.2 105.4 114.8 103.0 109.9 118.0 111.1 117.6 107.1 104.9 112.9 103.2 110.2 118.5 111.5 118.8 107.0 104.7 110.8 104.0 110.3 119.0 111.9 119.4 107.3 105.2 110.7 104.8 110.3 120.2 125.9 113.1 121.9 130.0 125.7 125.7 132.0 115.3 128.0 138.3 132.6 122.2 128.5 112.3 124.6 132.7 129.0 122.9 129.4 112.7 125.1 134.1 129.6 123.4 129.8 113.1 125.2 135.3 130.2 123.8 130.4 113.0 125.4 136.1 130.7 124.1 130.6 113.7 125.8 136.6 131.0 124.6 131.0 114.3 126.7 137.2 131.1 125.5 131.5 116.6 127.6 137.9 131.6 126.1 132.3 116.9 128.1 139.0 131.9 Special indexes: All items less food ...................................................................... All items less shelter .................................................................. All items less homeowners’ costs (12/82 —100)....................... All items less medical care......................................................... Commodities less fo o d ............................................................... Nondurabies less food ................................................................ Nondurables less food and apparel ........................................... Nondurables................................................................................ Services less rent o f shelter (12/82 —1 00)............................... Services less medical ca re ......................................................... Energy.......................................................................................... All items less energy .................................................................. All items less food and energy .................................................. Commodities less food and energy............................................ Energy commodities ................................................................... Services less energy................................................................... 113.6 111.6 115.1 112.6 104.3 101.8 100.3 107.5 123.1 119.1 88.6 117.2 118.2 111.8 80.2 122.0 118.3 115.9 119.5 117.0 107.7 105.8 104.0 111.8 128.3 124.3 89.3 122.3 123.4 115.8 80.8 127.9 115.5 113.2 116.6 114.3 106.0 103.7 102.1 109.1 124.6 121.0 88.3 119.2 120.4 113.5 82.0 124.4 115.7 113.3 116.9 114.6 105.5 102.8 101.9 109.1 125.3 121.7 87.4 119.7 120.8 113.2 80.0 125.2 116.0 113.5 117.1 114.8 105.4 102.7 101.9 109.0 125.8 122.1 87.0 120.0 121.1 113.3 78.8 125.7 116.6 114.0 117.7 115.3 106.3 104.1 101.9 109.8 126.0 122.4 86.5 120.6 121.9 114.6 78.0 126.1 117.2 114.7 118.4 115.9 107.3 105.6 102.9 111.0 126.5 122.8 87.3 121.2 122.4 115.5 79.7 126.5 117.6 115.2 118.8 116.3 107.6 106.0 103.8 111.4 127.1 123.2 88.7 121.5 122.7 115.5 81.4 126.9 118.1 115.7 119.3 116.8 107.4 105.5 104.0 111.4 128.4 124.1 91.0 121.8 123.0 115.4 81.4 127.4 Purchasing power of the consumer dollar: 1982-84-$1.00........................................................................... 1967 -$ 1.00 ................................................................................ 88.0 29.4 84.6 28.2 86.6 28.9 86.4 28.8 86.2 28.8 85.8 28.7 85.4 28.5 85.1 28.4 CONSUMER PRICE INDEX FOR URBAN WAGE EARNERS AND CLERICAL WORKERS: All items ......................................................................................... All items (1967-100) ...................................................................... 112.5 335.0 117.0 348.4 114.2 340.2 114.5 341.0 114.7 341.6 115.1 343.0 115.7 344.7 Food and beverages ..................................................................... Food............................................................................................. Food at home ........................................................................... Cereals and bakery products................................................. Meats, poultry, fish, and eggs................................................ Dairy products........................................................................ Fruits and vegetables............................................................. Other foods at hom e.............................................................. Sugar and sweets................................................................ Fats and o ils ........................................................................ Nonalcoholic beverages...................................................... Other prepared foods.......................................................... Food away from home ............................................................. Alcoholic beverages.................................................................... 113.3 113.3 111.7 114.8 110.4 105.7 118.8 110.4 110.9 107.9 107.5 113.6 116.9 113.9 117.9 117.9 116.2 122.2 114.1 108.1 127.6 113.0 113.9 113.0 107.7 117.8 121.6 118.3 114.5 114.5 112.5 116.9 110.1 106.4 123.0 109.8 110.9 107.6 104.9 114.8 118.8 115.1 115.4 115.4 113.7 118.1 110.8 107.1 125.7 111.3 112.1 108.4 107.2 115.7 119.1 115.6 115.5 115.4 113.5 118.8 110.5 107.0 124.0 111.7 112.1 109.5 107.9 115.8 119.6 116.6 115.7 115.6 113.5 118.9 111.1 106.9 122.2 111.9 112.4 110.3 108.0 116.0 120.0 117.3 Housing .......................................................................................... Shelter ......................................................................................... Renters' costs (12/84 = 100).................................................. Rent, residential..................................................................... Other renters' costs ............................................................... Homeowners’ costs (12/84 = 100)........................................... Owners’ equivalent rent (12/84 = 100) .................................. Household insurance (12/84 -1 0 0 )...................................... Maintenance and repairs.......................................................... Maintenance and repair services .......................................... Maintenance and repair commodities.................................... Fuel and other utilities................................................................ Fuels ......................................................................................... Fuel oil, coal, and bottled gas ............................................... Gas (piped) and electricity .................................................... Other utilities and public services............................................ Household furnishings and operations....................................... Housefurnishings...................................................................... Housekeeping supplies............................................................. Housekeeping services............................................................. 112.8 118.8 114.6 122.9 128.2 113.8 113.7 114.1 111.3 114.7 106.0 102.7 97.1 77.6 103.6 120.1 106.7 103.1 111.8 110.9 116.8 124.3 119.2 127.5 135.2 119.5 119.5 118.2 114.0 117.7 108.3 104.1 97.7 77.9 104.4 122.9 108.9 104.5 115.1 115.0 114.1 121.2 115.9 125.3 124.5 116.6 116.6 116.1 112.5 115.9 107.1 101.7 94.8 80.2 100.7 120.9 106.9 102.9 112.9 111.6 114.6 121.9 116.9 125.7 129.2 117.1 117.1 116.7 113.0 117.1 106.9 102.0 95.2 80.4 101.2 121.2 107.1 103.0 113.5 111.7 115.0 122.4 117.3 126.1 130.0 117.6 117.6 116.7 113.6 117.6 107.5 102.5 95.6 80.6 101.6 121.8 107.2 103.1 113.6 111.8 Apparel and upkeep ...................................................................... 110.4 114.9 112.6 110.3 110.0 1987 1988 All items ............................................................................................ Commodities.................................................................................. Food and beverages................................................................... Commodities less food and beverages...................................... Nondurables less food and beverages .................................... Apparel commodities.............................................................. Nondurables less food, beverages, and apparel .................. Durables.................................................................................... 113.6 107.7 113.5 104.0 101.1 108.9 99.5 108.2 Services.......................................................................................... Rent of shelter (12/82 —100)..................................................... Household services less rent of’ shelter (12/82 —100)............. Transportation services............................................................... Medical care services................................................................. Other services ............................................................................. Sept. See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 89 M O N T H L Y LA BO R R E V IE W 31. February 1989 Current Labor Statistics: Price Data • Consumer Price Index: U.S. city average and available local area data: all items (1982-84=100, unless otherwise indicated) Urban Wage Earners All Urban Consumers Area' U.S. city average................. Region and area size3 Northeast urban.................... Size A - More than 1,200,000 .......................... Size B - 500,000 to 1,200,000 .......................... Size C - 50,000 to 500,000 ............................. North Central urban .............. Size A - More than 1,200,000 .......................... Size B - 360,000 to 1,200,000 .......................... Size C - 50,000 to 360,000 ............................. Size D - Nonmetropolitan (less than 50,0000 ..................... South urban.......................... Size A - More than 1,200,000 .......................... Size B - 450,000 to 1,200,000 .......................... Size C - 50,000 to 450,000 ............................. Size D - Nonmetropolitan (less than 50,000) ...................... West urban.......................... 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 ...................................... Selected local areas Chicago, ILNorthwestern IN .................. Los Angeles-Long Beach, Anaheim, C A .......... New York, NYNortheastern N J.................. Philadelphia, PA-NJ.............. San FranciscoOakland, CA........................ Pricing Other sche index dule2 base 1988 1987 Dec. Jan. Aug. Sept. 1988 Nov. Dec. Dec. Jan. Aug. 117.7 Sept. Nov. Dec. 118.9 119.0 119.2 - 115.4 115.7 119.0 119.8 120.2 120.3 120.5 114.2 114.5 M _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 118.3 118.9 122.5 123.9 124.1 124.4 124.5 117.4 117.9 121.3 122.7 122.9 123.2 123.3 119.4 120.0 123.4 124.8 124.9 125.1 125.3 117.8 118.1 121.4 122.8 122.9 123.1 123.2 115.6 116.2 120.9 122.2 122.5 122.9 122.2 114.5 115.1 119.7 120.8 121.2 121.6 121.0 116.2 113.3 117.1 113.4 120.5 117.2 121.3 117.7 121.7 118.1 122.7 118.1 123.3 118.2 118.8 111.4 119.6 111.5 122.9 115.3 123.7 115.8 124.2 116.1 125.1 116.2 125.7 116.3 M M M M M M M M M M M M M M M M M M M M M _ _ _ _ _ 118.5 Oct. M 113.9 114.1 118.3 119.0 119.1 119.1 119.2 111.4 111.6 115.7 116.3 116.4 116.5 116.6 113.0 113.3 116.5 117.0 118.2 118.0 118.2 110.7 110.9 114.2 114.6 115.7 115.7 115.8 113.6 113.4 117.2 117.4 117.7 118.4 118.2 112.6 112.4 116.1 116.3 116.5 117.3 117.1 110.9 114.0 110.6 114.1 113.9 117.0 114.2 117.7 114.2 118.2 114.1 118.3 114.0 118.5 110.7 113.5 110.4 113.6 113.7 116.5 113.9 117.2 113.9 117.7 113.9 117.8 113.8 118.0 114.9 114.9 118.0 118.7 118.9 118.9 119.2 114.2 114.1 117.2 117.9 118.1 118.0 118.4 114.5 114.8 117.6 118.6 119.5 119.6 119.7 112.7 112.9 115.8 116.6 117.5 117.7 117.8 112.8 113.3 115.9 116.4 117.1 117.4 117.6 113.3 113.6 116.4 117.0 117.7 117.9 118.1 112.6 116.2 112.8 116.7 115.3 119.6 116.0 120.2 116.0 120.7 116.3 120.7 116.3 120.9 113.3 115.0 113.5 115.5 116.2 118.3 116.8 118.9 116.8 119.4 117.0 119.4 117.0 119.6 _ _ _ _ _ _ 117.2 117.9 121.1 121.7 122.2 122.3 122.5 114.8 115.3 118.4 119.0 119.6 119.6 119.7 115.0 115.8 - - - - 119.3 115.2 116.0 - - - - 119.4 - 116.0 116.0 118.1 118.5 119.4 119.0 119.0 115.4 115.3 117.5 117.8 118.7 118.4 118.4 104.7 114.5 114.2 112.7 105.0 115.0 114.5 112.9 108.2 118.0 117.5 115.8 109.0 118.9 117.9 116.6 109.2 119.7 118.5 116.8 109.2 119.7 118.9 117.0 109.4 119.8 119.1 116.8 104.7 113.2 114.6 113.1 105.0 113.6 114.8 113.2 108.1 116.7 117.8 116.2 108.9 117.6 118.3 116.9 109.1 118.3 118.9 117.1 109.1 118.4 119.3 117.3 109.3 118.5 119.4 117.1 122.0 121.6 121.0 121.3 112.2 111.9 116.4 118.2 117.8 117.4 117.7 12/86 _ _ - M - 115.7 115.3 120.1 M - 118.5 118.9 122.6 123.4 124.0 124.1 124.2 115.7 115.9 119.5 120.3 121.0 120.9 121.1 M M - 120.6 118.9 121.3 119.3 124.2 123.9 126.0 125.2 126.2 124.6 125.9 125.3 126.0 125.6 119.1 119.0 119.6 119.3 122.2 123.6 124.1 124.9 124.3 124.4 124.1 125.0 124.1 125.2 M - 117.4 118.4 122.0 122.1 122.3 122.2 122.6 116.4 117.5 120.5 121.1 121.3 121.1 121.5 Baltimore, MD ...................... Boston, MA .......................... Cleveland, OH...................... Miami, F L ............................. St. Louis, MO-IL.................... Washington, DC-MD-VA ........ 1 1 1 1 1 1 _ - 116.8 120.1 113.9 114.5 113.4 118.3 _ - 121.3 126.2 117.6 118.8 117.3 122.8 _ - 121.2 127.4 118.0 118.3 118.3 123.2 _ _ - _ - - - - 120.8 127.4 113.0 117.2 117.8 122.6 - Dallas-Ft. Worth, TX.............. Detroit, M l............................ Houston, TX ......................... Pittsburgh, PA ...................... 2 2 2 2 _ “ 113.9 112.6 107.3 113.0 - 117.2 117.6 110.3 115.3 _ " 117.9 118.6 111.1 116.3 “ 117.2 118.3 111.3 116.7 113.8 109.8 107.4 108.6 117.7 115.6 111.4 111.7 - _ 1 Area is the Consolidated Metropolitan Statistical Area (CMSA), exclu sive of farms and military. Area definitions are those established by the Of fice of Management and Budget in 1983, except for Boston-Lawrence-Salem, MA-NH Area (excludes Monroe County); and Milwaukee, Wl Area (in cludes only the Milwaukee MSA). Definitions do not include revisions made since 1983. 2 Foods, fuels, and several other items priced every month in all areas; most other goods and services priced as indicated:. M - Every month. 1 - January, March, May, July, September, and November. 2 - February, April, June, August, October, and December. 90 1987 Oct. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis _ _ 116.2 120.2 109.3 113.8 113.0 117.6 _ - _ - 121.0 126.1 112.7 117.8 117.1 122.3 117.0 114.6 110.6 110.7 - _ _ _ _ 117.0 115.7 111.4 112.2 3 Regions are defined as the four Census regions. - Data not available. NOTE: Local area CPI Indexes are byproducts of the national CPI pro gram. Because each local index is a small subset of the national index, it has a smaller sample size and is, therefore, subject to substantially more sampling and other measurement error than the national index. As a result, local area indexes show greater volatility than the national index, although their long-term trends are quite similar. Therefore, the Bureau of Labor Sta tistics strongly urges users to consider adopting the national average CPI for use in escalator clauses. 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: Food and beverages: Housing: Apparel and upkeep: Transportation: Medical care: Entertainment: Other goods and services: Consumer Price Index for Urban Wage Earners and Clerical Workers: All items: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1980 1981 1982 1983 1984 1985 1986 1987 1988 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 3.6 118.3 4.1 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 4.0 118.2 4.1 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 3.0 118.5 3.8 90.9 7.1 95.3 4.8 97.8 2.6 100.2 2.5 102.1 1.9 105.0 2.8 105.9 .9 110.6 4.4 115.4 4.3 83.1 17.9 93.2 12.2 97.0 4.1 99.3 2.4 103.7 4.4 106.4 2.6 102.3 -3.9 105.4 3.0 108.7 3.1 74.9 11.0 82.9 10.7 92.5 11.6 100.6 8.8 106.8 6.2 113.5 6.3 122.0 7.5 130.1 6.6 138.6 6.5 83.6 9.0 90.1 7.8 96.0 6.5 100.1 4.3 103.8 3.7 107.9 3.9 111.6 3.4 115.3 3.3 120.3 4.3 75.2 9.1 82.6 9.8 91.1 10.3 101.1 11.0 107.9 6.7 114.5 6.1 121.4 6.0 128.5 5.8 137.0 6.6 82.9 13.4 91.4 10.3 96.9 6.0 99.8 3.0 103.3 3.5 106.9 3.5 108.6 1.6 112.5 3.6 117.0 4.0 91 M O N T H L Y LA BO R R E V IE W February 1989 • Current Labor Statistics: Price Data 33. Producer Price Indexes, by stage of processing (1982 = 100) 1988 Annual average Grouping Finished goods ...................................... Finished consumer goods ........................ Finished consumer foods....................... Finished consumer goods excluding foods ..................................................... Nondurable goods less food ............... Durable goods ..................................... Capital equipment..................................... Intermediate materials, supplies, and components........................................... Materials and components for manufacturing .......................................... Materials for food manufacturing........... Materials for nondurable manufacturing . Materials for durable manufacturing...... Components for manufacturing.............. Materials and components for construction.............................................. Processed fuels and lubricants................. Containers................................................. Supplies..................................................... Crude materials for further processing ... Foodstuffs and feedstuffs ....................... Crude nonfood materials......................... 1987 1988 Jan. Feb. Mar. Apr. May June July Aug. Oct. Nov. Dec. 105.4 103.6 109.5 108.0 106.2 112.6 106.3 104.5 110.5 106.1 104.1 109.4 106.3 104.4 110.1 107.0 105.1 110.3 107.5 105.7 111.2 107.7 105.9 112.3 108.6 107.0 113.6 108.7 107.1 113.6 108.6 107.0 115.2 109.3 107.5 114.6 109.7 107.9 114.9 110.0 108.2 115.1 100.7 94.9 111.5 111.7 103.1 97.3 113.7 114.3 101.5 95.5 112.6 112.9 101.5 95.5 112.8 113.2 101.5 95.6 112.6 113.2 102.6 97.0 112.8 113.6 103.0 97.4 113.1 113.8 102.8 97.1 113.2 113.9 103.8 98.3 113.6 114.2 103.9 98.4 113.8 114.5 103.0 97.6 112.8 114.3 104.0 97.7 115.8 115.8 104.5 98.4 115.8 116.0 104.8 98.8 116.0 116.3 Sept. 101.5 107.1 104.2 104.3 104.7 105.6 106.3 107.4 108.2 108.4 108.7 108.6 109.0 109.5 105.3 100.8 102.2 106.2 108.8 113.2 105.9 112.9 118.8 112.3 109.5 101.9 107.5 114.5 110.5 109.9 102.0 108.5 113.9 110.8 110.5 101.6 109.6 114.7 111.1 111.6 102.6 110.9 116.8 111.5 112.3 104.0 111.7 117.7 111.9 112.9 106.9 112.2 118.5 112.1 114.0 109.9 113.8 119.3 112.4 114.3 108.9 114.5 119.7 112.8 114.9 109.6 115.2 120.4 113.1 115.5 108.2 116.2 121.7 113.5 116.2 107.4 116.8 123.5 113.8 116.8 108.3 117.5 124.4 114.1 109.8 73.3 114.5 107.7 116.1 71.3 120.1 113.7 113.6 70.7 116.6 110.5 113.8 70.2 116.9 110.6 114.4 69.6 117.4 111.1 115.0 70.5 118.4 111.7 115.4 71.5 119.5 112.3 115.8 73.9 120.0 113.8 116.5 73.6 120.5 115.2 116.7 73.5 121.3 115.1 117.2 72.5 122.4 115.7 117.7 69.7 122.5 116.1 118.2 69.5 122.7 116.2 118.8 70.3 122.7 116.1 93.7 96.2 87.9 95.9 106.0 85.5 93.7 97.2 87.3 94.7 99.7 87.4 94.1 99.8 86.4 95.6 101.1 88.0 97.2 104.7 88.2 97.9 108.6 87.0 97.3 110.1 85.1 96.9 110.4 84.4 96.6 111.5 83.2 95.8 111.4 82.0 94.0 107.7 81.4 97.0 109.5 85.1 104.0 61.8 112.3 112.5 113.3 106.5 59.8 115.8 116.3 117.0 104.9 59.2 113.9 114.3 115.2 105.0 58.5 113.8 114.0 115.5 105.1 58.2 114.1 114.4 115.7 105.9 60.9 114.3 114.6 115.9 106.2 61.6 114.8 115.2 116.2 106.1 60.3 115.3 115.8 116.4 106.9 61.3 116.2 116.9 117.1 107.1 61.1 116.4 117.0 117.4 106.4 58.8 116.7 117.6 117.2 107.6 58.7 117.6 118.2 118.7 108.0 59.8 117.8 118.4 118.9 108.3 59.3 118.2 118.9 119.4 114.2 118.5 116.5 116.8 117.1 117.3 117.6 117.9 118.8 119.1 118.9 120.3 120.5 121.2 116.3 122.0 119.5 119.9 120.4 120.6 120.9 121.3 122.7 123.0 123.4 123.7 124.0 125.0 101.7 99.2 73.0 107.3 107.0 109.5 71.0 114.6 104.2 102.9 70.5 111.2 104.4 101.9 70.0 111.4 104.8 102.0 69.3 112.1 105.7 103.4 70.2 113.0 106.4 104.8 71.2 113.6 107.2 111.8 73.5 114.4 107.8 116.6 73.3 115.5 108.1 114.5 73.1 115.7 108.4 115.7 72.2 116.3 108.3 114.7 69.4 116.9 108.8 113.3 69.2 117.4 109.3 112.8 70.0 117.8 107.8 115.2 111.8 112.2 112.9 113.8 114.4 114.9 115.7 116.1 116.7 117.4 118.0 118.6 75.0 100.9 115.7 67.8 112.5 132.7 70.8 105.1 129.2 70.4 107.6 131.6 68.7 108.1 133.4 70.6 109.0 133.1 71.4 111.1 131.3 70.0 114.0 131.2 67.3 115.5 132.9 66.1 116.0 133.9 64.9 116.7 133.4 63.5 116.6 133.3 62.6 114.1 134.0 66.7 115.6 134.9 Special groupings Finished goods, excluding fo o d s................. Finished energy goods ................................ Finished goods less energy........................ Finished consumer goods less energy....... Finished goods less food and energy ........ Finished consumer goods less food and energy......................................................... Consumer nondurable goods less food and energy......................................................... Intermediate materials less foods and fe e d s........................................................... Intermediate foods and feeds..................... Intermediate energy goods ......................... Intermediate goods less energy .................. Intermediate materials less foods and energy......................................................... Crude energy materials................................ Crude materials less energy ....................... Crude nonfood materials less energy......... Digitized for 92FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 34. Producer Price indexes, by durability of product (1982 = 100) 1988 Annual average Grouping 1987 1988 Jan. Mar. Feb. Apr. May June July Aug. Oct. Nov. Dec. 115.1 102.6 115.2 102.7 116.2 102.2 116.7 102.1 117.1 102.9 Sept. Total durable goods................................. Total nondurable goods............................ 109.9 97.5 114.7 101.1 112.8 98.5 113.0 98.6 113.3 98.8 113.8 99.8 114.1 100.8 114.4 101.8 114.8 102.6 Total manufactures................................... Durable.................................................. Nondurable ............................................ 104.4 109.6 99.2 109.1 114.0 104.1 106.6 112.2 101.1 106.8 112.4 101.3 107.1 112.6 101.7 107.9 113.2 102.7 108.6 113.5 103.7 109.0 113.7 104.3 109.8 114.1 105.4 110.0 114.4 105.6 110.1 114.5 105.7 110.5 115.5 105.5 111.0 116.0 106.0 111.3 116.3 106.3 Total raw or slightly processed goods ....... Durable.................................................. Nondurable ............................................ 94.2 122.6 92.9 95.9 147.4 93.5 94.0 139.9 91.9 94.1 144.6 91.8 93.8 146.2 91.4 94.9 146.1 92.5 95.6 143.1 93.3 97.5 144.2 95.3 97.8 149.3 95.3 97.2 150.6 94.7 97.5 149.4 95.0 96.4 149.9 93.9 94.7 151.8 92.1 96.9 153.8 94.2 35. Annual data: Producer Price Indexes, by stage of processing (1982 = 100) Index Finished goods: Consumer goods ......................................... Capital equipment ....................................... Intermediate materials, supplies, and components: Total ............................................................... Materials and components for manufacturing............................................. Materials and components for construction .... Processed fuels and lubricants .................... Supplies ...................................................... 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1981 1982 1983 1984 1985 1986 1987 77.6 77.5 77.5 88.0 88.6 85.8 96.1 96.6 94.6 100.0 100.0 100.0 101.6 101.3 102.8 103.7 103.3 105.2 104.7 103.8 107.5 103.2 101.4 109.7 105.4 103.6 111.7 78.4 90.3 98.6 100.0 100.6 103.1 102.7 99.1 101.5 80.9 84.2 61.6 79.4 80.2 91.7 91.3 85.0 89.1 89.9 98.7 97.9 100.6 96.7 96.9 100.0 100.0 100.0 100.0 100.0 101.2 102.8 95.4 100.4 101.8 104.1 105.6 95.7 105.9 104.1 103.3 107.3 92.8 109.0 104.4 102.2 108.1 72.7 110.3 105.6 105.3 109.8 85.9 100.0 69.6 57.3 95.3 104.6 84.6 69.4 103.0 103.9 101.8 84.8 100.0 100.0 100.0 100.0 101.3 101.8 100.7 105.1 103.5 104.7 102.2 105.1 95.8 94.8 96.9 102.7 87.7 93.2 81.6 92.2 93.7 96.2 87.9 84.1 Crude materials for further processing: Foodstuffs and feedstuffs ............................ Nonfood materials except fuel ..................... Fuel ............................................................ 1980 114.5 107.7 93 M O N T H L Y LA BO R R E V IE W 36. February 1989 • Current Labor Statistics: Price Data U.S. export price indexes by Standard International Trade Classification (1985 = 100 , unless otherwise indicated) Category 1974 SITO 1987 1986 1988 June Sept. June Sept. Dec. Mar. June Sept. 99.4 99.1 97.9 99.0 99.9 102.2 102.8 104.9 106.5 109.5 111.7 0 01 03 04 05 08 09 97.2 102.5 100.2 91.7 98.6 120.0 98.0 97.1 105.2 108.6 89.0 108.6 114.8 97.0 86.0 111.3 111.9 66.3 114.6 123.9 98.7 90.1 114.5 115.9 72.5 117.5 119.7 99.9 87.3 115.0 117.1 68.3 115.3 117.0 100.1 89.9 121.2 125.8 71.0 112.4 123.8 100.6 86.7 118.8 131.1 67.8 101.1 123.1 100.3 94.6 116.8 138.5 77.4 100.5 145.2 100.3 95.2 122.8 140.9 79.8 97.5 134.6 102.3 103.4 131.0 145.0 87.2 104.3 158.1 102.8 118.7 137.5 176.0 108.3 109.9 160.9 105.2 1 11 12 96.6 97.4 97.3 102.6 102.6 107.0 97.0 102.6 102.6 105.5 107.0 109.6 “ 109.8 110.6 97.1 105.0 “ 105.0 105.5 96.3 110.7 112.0 “ 112.1 Pulp and waste paper.......................................................................... Textile fibers....................................................................................... Crude fertilizers and minerals.............................................................. Metalliferous ores and metal scrap ..................................................... 2 21 22 23 24 25 26 27 28 101.4 108.7 99.1 99.7 101.5 104.2 100.2 100.0 100.3 102.2 117.1 98.1 99.9 101.2 116.4 98.0 98.4 98.0 99.6 108.3 97.5 99.6 102.9 129.0 73.0 98.0 100.4 102.4 115.9 95.2 98.9 107.9 129.4 90.9 96.8 96.8 105.7 131.9 90.4 99.9 111.2 144.2 97.8 94.4 98.8 114.5 149.6 101.6 101.0 116.2 149.9 112.4 94.0 107.0 118.7 147.7 95.1 102.8 141.7 153.0 116.5 91.6 117.4 125.2 157.1 109.6 105.3 146.0 160.4 111.6 91.6 125.9 130.0 171.4 115.6 104.5 150.2 171.2 107.5 92.8 131.8 139.9 166.8 143.0 106.1 149.6 179.5 109.9 94.2 146.0 140.7 156.3 154.7 109.1 150.0 180.8 100.8 94.8 145.0 Mineral fuels............................................................................................... 3 83.6 76.8 77.4 77.8 81.3 82.8 84.6 82.5 79.3 82.0 79.5 Animal and vegetables oils, fats, and waxes......................................... 4 42 74.3 71.3 67.7 70.6 62.1 60.2 71.8 64.6 73.9 67.3 78.8 71.9 78.5 71.2 81.6 75.4 92.7 85.7 97.3 93.7 102.0 99.1 5 51 56 99.8 98.5 98.9 98.0 93.1 93.0 95.7 91.6 85.1 95.2 92.4 77.4 99.6 101.9 85.6 106.7 118.4 91.6 107.7 116.1 100.9 112.9 123.5 106.5 117.9 135.1 110.6 121.6 144.6 109.8 124.9 153.5 116.2 6 61 62 64 67 68 69 101.3 97.3 100.7 100.5 100.3 104.2 100.4 102.5 103.8 100.1 104.7 100.2 103.1 100.8 103.8 104.2 100.5 109.1 102.3 105.3 100.8 104.2 107.8 100.9 110.8 101.9 102.6 100.8 106.4 123.6 102.0 114.7 102.9 106.6 101.5 107.9 126.9 102.5 117.0 102.9 113.0 101.3 110.3 128.7 103.9 120.1 100.7 123.0 102.3 111.2 118.0 104.1 122.4 102.9 124.4 103.4 114.4 125.7 105.2 126.2 106.1 134.0 104.5 117.7 125.1 108.8 129.0 110.8 143.5 107.6 119.6 128.6 109.2 130.2 111.1 148.9 109.9 7 71 72 73 74 75 76 77 78 79 100.7 102.3 100.6 101.9 100.9 99.9 99.2 99.5 101.0 102.1 100.8 102.4 100.3 102.0 101.6 99.0 98.9 99.2 101.7 103.1 101.0 102.5 100.4 103.0 102.5 98.8 99.7 99.7 101.9 102.8 101.6 103.7 100.6 104.2 103.3 98.2 101.3 100.3 103.3 103.5 101.7 104.6 100.0 105.8 104.2 96.0 101.9 101.7 103.1 104.5 101.8 103.7 100.1 106.7 104.5 96.1 101.4 102.1 103.5 105.5 102.1 104.8 100.5 107.8 104.6 95.7 101.4 102.5 103.8 105.8 102.4 105.2 100.9 108.2 105.4 95.5 101.9 101.8 104.6 106.6 103.2 107.0 102.1 109.3 106.7 95.8 102.8 103.1 104.5 107.4 104.0 108.4 103.6 110.8 108.1 95.7 104.6 103.4 104.9 109.6 104.5 108.5 104.7 111.0 109.3 96.7 104.1 103.1 105.4 109.7 8 84 87 102.3 103.5 103.1 103.4 103.0 103.8 103.5 104.6 104.4 105.2 105.5 105.4 106.3 105.6 107.1 106.9 102.0 110.0 108.1 111.1 108.9 112.5 88 101.9 102.6 102.4 102.1 102.7 102.5 99.0 97.9 97.6 100.1 99.3 Miscellaneous manufactured articles, n.e.s....................................... ,.... 89 - - - - - - - - - - - Gold, non-monetary ........................................................................... 971 - - - - - - - - - - - ALL COMMODITIES................................................................................... Food ............................................................................................................ Grain and grain preparations .............................................................. Vegetables and fruit ........................................................................... Feedstuffs for animals.................. ...................................................... Misc. food products ........................................................................... Beverages and tobacco............................................................................ Beverages......................................................................................... Tobacco and tobacco products............................................... ............ Crude materials.......................................................................................... Raw hides and skins.................................................................... ......... Oilseeds and oleaginous fruit........................................................ ...... Crude rubber (including synthetic and reclaimed).................................. Fixed vegetable oils and fats ............................................................. Chemicals ................... ............................................................................... Organic cnemicals.............................................................................. Fertilizers, manufactured .................................................................... Intermediate manufactured products .................................................... Leather and fursklns........................................................................... Rubber manufactures ................................................ ......................... Paper and paperboard products ......................................................... Nonferrous metals ............................................................................. Metal manufactures, n.e.s.................................................................... Machinery and transport equipment, excluding military and commercial aircraft........................................................................... Power generating machinery and equipment................................... . Machinery specialized for particular industries................... ................... Metalworking machinery.................................. ................................... General Industrial machines and parts n.e.s...... ................................... Office machines and automatic data processing equipment ................. Telecommunications, sound recording and reproducing equipment....... Electrical machinery and equipment.................................................... Road vehicles and parts..................................................................... Other transport equipment, excl. military and commercial aviation ....... Other manufactured articles .................................................................... Apparel ............................................................................................. Professional, scientific, and controlling instruments and apparatus........ Photographic apparatus and supplies, optical goods, watches and clocks .............................................................................................. - Data not available. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Mar. Dec. Mar. ; _ , 37. . '" i ty -:; U.S. Import price indexes by Standard International Trade Classification (1985 = 100, unless otherwise indicated) Category 1974 SITC Meat.................................................................................................. Dairy products and eggs .................................................................... Fish................................................................................................... Bakery goods, pasta products, grain and grain preparations Fruits and vegetables .......... .............................................................. Sugar, sugar preparations, and honey................................................. Coffee, tea, cocoa.............................................................................. Beverages and tobacco ............................................................................ Beverages ......................................................................................... Crude materials.......................................................................................... Crude rubber (inc. synthetic & reclaimed) ........................................... Wood ................... ............................................................................. Pulp and waste paper ........................................................................ Crude fertilizers and crude minerals .................................................... Metalliferous ores and metal scrap ..................................................... Crude vegetable and animal materials, n.e.s......................................... Fuels and related products...................................................................... Petroleum and petroleum products ..................................................... Fats and oils ............................................................................................... Vegetable oils ................................................................................... Chemicals ................................................................................................... Medicinal and pharmaceutical products............................................... Manufactured fertilizers ...................................................................... Chemical materials and products, n.e.s, ............................................... Intermediate manufactured products..................................................... Leather and furskins........................................................................... Rubber manufactures, n.e.s................................................................. Cork and wood manufactures ............................................................. Paper and paperboard products ......................................................... Textiles.............................................................................................. Nonmetallic mineral manufactures, n.e.s............................................... Iron and steel .................................................................................... Nonferrous metals............................................................................... Metal manufactures, n.e.s.................................................................... Machinery and transport equipment ..................................................... Machinery specialized for particular industries..................................... Metalworking machinery .................................................................... General industrial machinery and parts, n.e.s........................................ Office machines and automatic data orocessina equipment Telecommunications, sound recording and reproducing apparatus Electrical machinery and equipment.................................................... Road vehicles and parts .................................................................... Mise, manufactured articles ................... ................................................. Plumbing, heating, and lighting fixtures................................................ Furniture and parts ............................................................................ Clothing ............................................................................................. Footwear............................................................................................ Professional, scientific, and controlling instruments and apparatus................................ ......................................................... Photographic apparatus and supplies, optical goods, watches, and clocks .............................................................................................. Mlsc. manufactured articles, n.e.s......................................................... Gold, non-monetary (6/82—100).............................................................. 1988 Sept. Dec. Mar. June Sept. Dec. Mar. June Sept. 101.1 102.3 106.5 110.0 110.9 112.5 113.8 116.8 115.5 0 01 02 03 04 05 06 07 112.0 104.3 111.3 114.1 117.8 106.0 106.2 121.5 109.1 109.2 113.8 119.1 118.8 104.3 106.5 104.9 105.2 105.0 119.3 121.8 122.3 101.9 107.4 89.9 108.3 108.0 122.3 126.0 126.2 110.1 109.6 87.0 109.1 114.4 121.7 130.4 124.8 110.0 109.0 85.1 112.5 113.4 125.1 131.0 130.7 116.2 107.0 90.6 114.1 111.5 125.6 132.5 135.8 115.4 109.6 94.3 114.0 107.0 125.0 129.3 139.8 120.3 110.0 93.3 112.8 111.2 122.2 125.9 137.4 124.0 113.6 87.2 1 11 103.9 107.5 106.8 109.5 107.8 112.1 112.8 114.2 112.2 114.8 113.5 116.2 116.0 118.7 116.2 120.0 115.3 118.9 2 23 24 25 27 28 29 109.5 97.7 107.6 108.0 98.4 124.8 112.4 109.1 98.4 104.8 116.9 98.6 118.3 111.9 115.1 98.4 113.5 127.0 98.2 122.8 113.0 116.2 103.7 110.2 132.0 99.6 124.5 109.0 120.3 110.7 117.4 133.4 99.2 128.7 107.6 122.1 120.1 108.8 141.0 99.9 137.9 118.3 129.2 121.7 112.4 151.0 100.4 151.2 135.8 137.8 151.1 111.4 160.5 101.0 167.6 148.2 135.3 133.3 109.7 169.6 97.2 172.2 121.8 3 33 52.2 50.0 55.9 55.0 67.4 67.4 74.1 74.4 74.3 75.2 67.2 67.8 60.6 60.4 63.4 63.6 58.9 58.9 4 42 61.2 - 83.4 - 82.9 - 87.9 - 96.4 100.0 102.1 105.7 106.4 111.1 111.2 116.1 113.6 118.7 5 54 56 59 99.8 115.9 89.8 111.3 99.0 113.6 89.9 112.7 102.6 120.1 92.9 115.1 104.8 123.4 94.6 117.7 105.6 124.3 109.3 120.6 110.1 126.3 133.6 124.8 114.2 135.3 133.7 138.7 116.4 140.3 136.3 148.5 119.6 147.4 136.5 155.4 6 61 62 63 64 65 66 67 68 69 105.8 108.8 102.0 112.7 101.0 107.4 116.6 100.0 103.3 107.7 106.7 107.2 101.8 117.4 104.9 107.9 117.9 100.9 101.5 108.3 108.6 110.9 104.3 118.0 104.8 110.4 120.5 102.7 102.5 112.1 112.5 116.6 104.6 124.3 104.9 111.8 126.7 106.6 112.4 112.7 116.3 117.8 103.2 128.3 110.3 114.6 130.4 109.4 120.9 114.6 119.8 124.4 104.6 128.2 112.3 118.6 133.4 114.0 125.8 117.8 124.4 131.8 106.0 133.8 117.2 120.0 137.4 120.0 132.7 121.1 132.2 137.0 107.7 138.2 118.3 120.6 142.5 127.2 159.7 126.9 132.1 136.6 109.1 136.2 119.5 118.9 139.6 129.7 158.3 127.4 7 72 73 74 75 76 77 78 113.0 122.7 117.7 119.9 109.9 109.2 108.8 112.9 114.4 123.0 120.9 120.9 108.9 108.9 109.8 116.1 117.5 130.4 126.4 127.9 110.0 110.5 112.4 118.6 119.9 136.1 128.1 130.8 114.0 110.3 115.8 120.5 119.9 134.3 130.2 130.1 114.8 110.2 115.1 120.6 123.1 142.1 135.5 137.0 118.3 112.1 118.2 122.6 125.4 146.8 139.9 140.4 118.1 112.8 122.2 125.5 127.3 149.8 142.4 143.6 119.5 113.8 124.2 127.6 126.6 143.6 139.4 139.7 118.4 113.8 125.7 127.1 8 81 82 84 85 109.7 111.1 110.7 101.7 110.7 110.3 110.8 112.3 102.6 112.3 114.5 111.6 114.8 106.4 114.8 117.8 117.0 119.8 109.2 119.8 118.5 116.2 119.0 111.9 119.0 121.8 121.0 124.3 112.3 124.3 124.2 123.4 125.4 115.6 125.4 125.7 126.9 129.6 114.9 129.6 124.3 124.5 128.0 116.8 128.0 87 122.6 122.5 131.3 135.9 132.7 138.7 140.0 142.5 135.8 88 89 118.0 " 119.0 123.7 ” 126.0 “ 122.1 127.3 “ 129.2 “ 129.3 “ 125.5 “ 971 - - - - - - - - - ALL COMMODITIES ................................................................................... Food ........................................................................................................... 1987 1986 - Data not available. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 95 M O N T H L Y LA BO R R EV IEW February 1989 Current Labor Statistics: Price Data • 38. U.S. export price indexes by end-use category (1985 = 100 unless otherwise Indicatevi) 1988 1987 1986 Category Sept. Foods, feeds, and beverages ................................................... Raw materials.......................................................................... Capital goods ......................................................................... Automotive vehicles, parts and engines.................................... Consumer goods..................................................................... Nondurables.......................................................................... Durables ............................................................................... Mar. Dec. 87.2 95.1 100.7 102.3 103.6 102.9 103.8 June 87.4 100.8 101.4 103.4 105.9 105.5 105.4 90.2 96.3 101.1 103.5 105.2 104.9 104.3 Sept. 88.0 109.1 101.8 104.0 106.9 107.3 104.6 91.5 106.1 101.6 103.6 106.3 106.6 104.3 Mar. Dec. 98.5 114.2 103.4 104.3 110.1 110.4 107.4 96.6 111.8 102.1 104.5 108.0 107.9 106.3 Sept. June 124.5 118.7 104.9 105.3 111.3 110.8 109.4 110.1 118.3 104.3 104.8 110.6 110.4 108.7 39. U.S. import price indexes by end-use category (1985 = 100) 1986 1987 1988 Category Sept. Foods, feeds, and beverages ................................................... Petroleum and petroleum products, excl. natural gas................ Raw materials, excluding petroleum ..................................... Raw materials, nondurable ............ Raw materials, durable.......................................................... Capital goods........................................................................... Automotive vehicles, parts and engines.................................... Consumer goods........................................................ Nondurable................................................ Durable ................................................................................ Mar. Dec. June Sept. Dec. Mar. June Sept. 109.8 50.0 108.4 54.7 105.2 67.2 107.8 74.1 109.0 74.7 112.1 67.6 113.7 60.3 113.7 63.5 112.8 58.7 - - _ _ - _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 113.5 112.7 110.1 114.2 114.6 110.5 118.7 116.5 114.2 122.2 118.4 116.9 121.9 118.4 118.2 126.6 120.6 121.4 128.6 123.7 124.2 131.0 125.8 126.3 128.8 125.9 124.8 _ _ _ _ _ _ _ _ _ - - - - - - - - - - Data not available. 40. U.S. export price indexes by Standard Industrial Classification 1 (1985 = 100) 1988 1987 1986 Industry group Sept. Dec. Mar. June Sept. Manufacturing: Scientific instruments; optical goods; clocks................... 1 SIC - based classification. Digitized for96 FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 97.4 104 8 104.0 102.3 95.8 65.1 109.3 100.1 99.9 104.8 104.7 100.2 108 8 104.1 104.9 95.8 67.6 106.9 100.1 100.8 106.0 105.3 102.0 112.8 108.0 109.3 100.5 73.5 110.6 99.6 101.9 106.2 105.8 107.4 116.2 108.6 112.3 107.6 80.5 117.2 99.4 102.1 106.7 106.8 107.1 138.9 108.7 115.5 108.7 81.4 122.3 99.4 102.5 106.9 106.6 Dec. 116.3 142.5 111.2 119.3 113.8 78.8 126.6 99.7 102.2 107.8 107.1 Mar. 120.8 146.1 112.5 124.6 118.4 73.0 126.9 100.6 102.9 108.1 109.2 June 125.1 145.4 112.9 129.8 122.3 77.8 133.8 101.3 103.7 109.1 110.8 Sept. 128.9 146.1 112.9 132.7 125.5 73.5 133.3 102.2 103.5 109.4 112.1 41. U.S. import price indexes by Standard Industrial Classification (1985 = 100) 1986 1987 1988 Industry group Sept. Manufacturing: Food and kindred products.................................................. Textile mill products .......................................................... Apparel and related products .............................................. Lumber and wood products, except furniture ....................... Furniture and fixtures ........................................................ Paper and allied products..................................................... Chemicals and allied products ............................................. Rubber and miscellaneous plastic products ........................ Leather and leather products .............................................. Primary metal products ......................................... Fabricated metal products................. .............................. Machinery, except electrical................................................. Electrical machinery........................................... ................................ Transportation equipment Scientific instruments; optical goods; clocks........................ Miscellaneous manufactured commodities .......................... Dec. 99.7 109.2 102.4 109.0 111.4 98.6 104.3 106.6 105.3 102.3 111.1 118.2 106.9 114.7 122.6 110.7 Mar. 103.0 110.6 103.0 109.0 111.6 103.3 102.6 107.9 106.4 101.3 111.7 118.9 107.0 117.3 122.4 112.2 June 103.8 114.1 107.0 114.8 116.1 105.1 105.7 110.6 108.3 102.7 116.7 123.4 109.4 119.9 128.8 115.1 Sept. 106.3 116.1 109.4 115.0 117.0 105.9 106.2 113.6 113.3 110.4 117.5 127.4 110.7 122.1 132.5 118.1 Dec. 108.4 119.4 112.3 120.3 118.3 110.9 107.2 112.3 113.3 115.2 119.8 127.8 110.2 122.5 128.8 121.4 Mar. 110.6 124.3 113.4 115.4 118.9 113.6 112.2 115.7 118.4 120.0 123.2 133.9 112.5 124.6 134.0 123.8 June 114.0 127.4 116.6 119.5 122.2 119.1 116.8 117.2 120.8 122.6 127.3 135.9 114.7 127.3 135.8 127.7 Sept. 114.4 128.9 115.8 120.3 124.0 121.3 121.3 119.0 124.6 137.0 133.3 138.2 116.1 129 5 137 0 133.1 1 SIC - based classification. 42. Indexes of productivity, hourly compensation, and unit costs, quarterly data seasonally adjusted (1977=100) Quarterly Indexes Item 1986 I II 1987 III IV I II 1988 III IV I II III Business: Output per hour of all persons................... Compensation per hour..................... Real compensation per hour................. Unit labor costs ................. Unit nonlabor payments ...................... Implicit price deflator ...................... 110.5 180.4 100.0 163.3 164.5 163.7 110.4 182.0 101.2 164.9 165.2 165.0 110.0 184.0 101.7 167.3 166.6 167.0 109.8 186.2 102.2 169.6 163.7 167.5 109.9 187.3 101.5 170.5 165.6 168.7 110.6 189.0 101.2 170.8 168.7 170.1 111.7 191.1 101.4 171.1 171.5 171.2 111.8 194.0 102.0 173.5 168.9 171.9 112.8 195.8 102.1 173.5 170.0 172.3 111.8 198.1 102.1 177.1 170.4 174.7 112 2 201.0 102.4 179.1 172.4 176.7 108.6 179.8 99.6 165.5 166.1 165.7 108.4 181.2 100.7 167.1 166.6 167.0 108.0 183.1 101.2 169.5 168.1 169.0 107.8 185.4 101.8 172.1 164.9 169.5 107.8 186.4 101.0 172.9 167.2 170.9 108.6 187.9 100.6 173.0 169.8 171.9 109.6 190.0 100.8 173.3 173.0 173.2 109.9 192.9 101.4 175.6 170.9 174.0 110.8 194.6 101.5 175.7 171.6 174.2 110.1 196.6 101.3 178.6 171.8 176.2 110 6 199.4 101.5 180.2 173.6 177.9 109.5 177.1 98.1 165.5 161.7 176.7 133.7 161.7 161.7 109.3 178.5 99.2 166.7 163.3 176.9 132.7 161.4 162.6 109.6 180.2 99.6 168.4 164.3 180.3 133.6 164.0 164.2 110.3 182.2 100.1 168.8 165.1 179.6 129.7 162.1 164.1 110.1 182.9 99.1 169.9 166.2 180.8 128.5 162.5 164.9 110.9 184.3 98.7 170.3 166.1 182.6 129.8 164.1 165.4 112.2 186.1 98.7 170.2 165.9 183.0 136.4 166.6 166.1 112.2 188.5 99.1 172.0 168.1 183.6 128.3 164.2 166.7 113.3 189.9 99.0 171.5 167.5 183.4 132.5 165.6 166.9 112.9 191.9 98.9 173.8 170.0 185.1 132.6 166.7 168.8 112 6 194 4 99.0 176 4 172.7 187.6 129 5 167.2 170.8 126.6 181.1 100.3 143.0 127.2 182.0 101.2 143.2 128.0 183.6 101.5 143.4 128.8 185.3 101.7 143.8 130.0 185.9 100.8 143.1 131.7 186.3 99.7 141.4 132.8 187.2 99.3 141.0 133.2 188.2 99.0 141.3 134.3 190.7 99.4 142.1 135.5 192.1 99.0 141.8 137 2 194 4 99 0 141.6 Nonfarm business: Output per hour of all persons.................... Compensation per hour..................... Real compensation per hour............................. Unit labor costs ....................... Unit nonlabor payments .................................... Implicit price deflator ........................................ Nonfinancial corporations: Output per hour of all employees........ Compensation per hour.................. Real compensation per hour.................. Total unit costs.................... Unit labor costs ...................... Unit nonlabor costs...................... Unit profits....................... Unit nonlabor payments .................. Implicit price deflator .................... Manufacturing: Output per hour of all persons.............. Compensation per hour.................... Real compensation per hour....... Unit labor costs ....................... https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 115.2 126.5 117.2 118.6 124.8 123.8 123.8 117 8 123 7 132 3 134 9 129 2 130.7 M O N T H L Y LA B O R R EV IEW 43. February 1989 • Current Labor Statistics: Productivity Data Annual indexes of multifactor productivity and related measures, selected years (1977 = 100) Item 1960 1970 1973 1977 1979 1981 1982 1983 1984 1985 1986 1987 Private business Productivity: Output per hour of all persons ........................ Output per unit of capital services................... Multifactor productivity.................................... Output.............................................................. Inputs: Hours of all persons....................................... Capital services ............................................. Combined units of labor and capital input........ Capital per hour of all persons........................... 67.3 103.7 78.5 55.3 88.4 102.7 93.1 80.2 95.9 105.6 99.2 93.0 100.0 100.0 100.0 100.0 99.5 99.7 99.6 107.9 100.6 92.3 97.6 108.9 100.3 86.6 95.2 105.4 103.0 88.3 97.6 109.9 105.6 92.7 100.9 119.2 107.9 92.9 102.4 124.3 110.3 93.0 103.9 128.7 111.2 93.7 104.7 133.4 82.2 53.3 70.5 64.9 90.8 78.1 86.1 86.1 96.9 88.0 93.7 90.8 100.0 100.0 100.0 100.0 108.4 108.2 108.3 99.8 108.2 117.9 111.5 108.9 105.2 121.8 110.7 115.8 106.7 124.4 112.6 116.6 112.9 128.6 118.1 113.9 115.2 133.8 121.4 116.1 116.7 138.5 123.9 118.7 120.0 142.4 127.4 118.6 70.7 104.9 81.2 54.4 89.2 103.5 93.8 79.9 96.4 106.3 99.7 92.9 100.0 100.0 100.0 100.0 99.2 98.9 99.1 107.9 99.6 91.0 96.7 108.4 99.1 85.1 94.1 104.8 102.5 87.3 97.0 110.1 104.7 91.3 99.9 119.3 106.2 91.0 100.7 124.0 108.3 90.8 102.0 128.3 109.1 91.5 102.7 133.2 77.0 51.9 67.1 67.4 89.6 77.2 85.2 86.2 96.3 87.3 93.2 90.7 100.0 100.0 100.0 100.0 108.8 109.1 108.9 100.3 108.8 119.1 112.2 109.4 105.7 123.3 111.4 116.6 107.4 126.1 113.5 117.4 114.0 130.6 119.4 114.6 116.8 136.3 123.1 116.7 118.5 141.3 125.8 119.3 122.0 145.5 129.6 119.2 62.2 103.0 72.0 52.5 80.8 99.1 85.3 78.6 93.4 112.0 98.0 96.3 100.0 100.0 100.0 100.0 101.4 99.5 100.9 108.1 103.6 89.0 99.7 104.8 105.9 81.6 99.2 98.4 112.0 86.7 105.0 104.7 118.1 95.5 112.1 117.5 123.6 97.3 116.4 122.0 127.7 98.4 119.5 124.7 131.9 102.0 123.6 130.1 84.4 51.0 72.9 60.4 97.3 79.3 92.1 81.5 103.1 86.0 98.3 83.4 100.0 100.0 100.0 100.0 106.5 108.6 107.1 101.9 101.1 117.8 105.1 116.5 92.9 120.5 99.2 129.8 93.5 120.8 99.7 129.3 99.5 123.0 104.8 123.7 98.7 125.4 104.8 127.1 97.7 126.8 104.4 129.8 98.6 127.6 105.3 129.4 Private nonfarm business Productivity: Output per hour of all persons........................ Output per unit of capital services................... Multifactor productivity.................................... Output.............................................................. Inputs: Hours of all persons....................................... Capital services ............................................. Combined units of labor and capital Input........ Capital per hour of all persons........................... Manufacturing Productivity: Output per hour of all persons........................ Output per unit of capital services................... Multifactor productivity.................................... Output.............................................................. Inputs: Hours of all persons....................................... Capital services ............................................. Combined units of labor and capital inputs ...... Capital per hour of all persons.......................... 98 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 44. Annual indexes of productivity, hourly compensation, unit costs, and prices, selected years (1977 = 100) Item 1960 1970 1973 1976 1978 1980 1981 1982 1983 1984 1985 1986 1987 67.6 33.6 68.9 49.7 46.4 48.5 88.4 57.8 90.3 65.4 59.4 63.2 95.9 70.9 96.8 73.9 72.5 73.4 98.3 92.8 98.8 94.3 93.3 94.0 100.8 108.5 100.9 107.6 106.7 107.3 99.3 131.5 96.7 132.5 118.7 127.6 100.7 143.7 95.8 142.7 134.6 139.8 100.3 154.9 97.3 154.5 136.6 148.1 103.0 161.4 98.2 156.7 146.4 153.0 105.5 167.9 97.9 159.1 156.5 158.2 107.7 175.5 98.8 162.9 160.9 162.2 110.1 183.1 101.2 166.3 165.0 165.8 111.0 190.4 101.5 171.5 168.7 170.5 71.0 35.3 72.3 49.7 46.3 48.5 89.3 58.2 90.9 65.2 60.0 63.4 96.4 71.2 97.2 73.9 69.3 72.3 98.5 92.8 98.9 94.3 93.0 93.8 100.8 108.6 100.9 107.7 105.6 107.0 98.8 131.3 96.6 132.9 118.5 127.8 99.8 143.6 95.8 144.0 133.5 140.3 99.2 154.8 97.2 156.0 136.5 149.2 102.5 161.5 98.3 157.6 148.3 154.3 104.6 167.8 97.9 160.4 156.3 159.0 106.1 174.9 98.5 164.9 161.9 163.8 108.2 182.3 100.8 168.6 166.4 167.8 109.0 189.4 101.0 173.8 170.2 172.5 73.4 36.9 75.5 49.4 50.2 47.0 59.8 51.5 50.7 91.1 59.2 92.5 64.8 65.0 64.2 52.3 60.1 63.3 97.5 71.6 97.7 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 94.2 100.6 108.4 100.8 107.3 107.8 105.7 102.0 104.4 106.6 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 96.7 160.8 156.5 173.6 136.5 160.6 157.9 107.7 172.5 97.1 164.1 160.2 175.8 133.0 160.8 160.4 109.7 179.5 99.2 167.3 163.6 178.4 132.4 162.3 163.2 111.3 185.5 98.9 170.6 166.6 182.5 130.8 164.4 165.8 62.2 36.5 74.8 58.7 60.0 59.1 80.8 57.4 89.6 71.0 64.1 69.0 93.4 68.8 93.9 73.7 70.7 72.8 97.1 92.1 98.1 94.9 93.5 94.5 101.5 108.2 100.6 106.6 101.9 105.2 101.4 132.4 97.4 130.6 97.8 121.0 103.6 145.2 96.8 140.1 111.8 131.8 105.9 157.5 98.9 148.7 114.0 138.6 112.0 162.4 98.8 145.0 128.5 140.2 118.1 168.0 98.0 142.2 138.6 141.2 123.6 176.4 99.3 142.7 130.4 139.1 127.7 183.0 101.2 143.3 136.3 141.3 132.0 186.9 99.7 141.7 139.2 141.0 Business: Output per hour of all persons........................... Compensation per hour..................................... Real compensation per hour............................. Unit labor costs ................................................ Unit nonlabor payments .................................... Implicit price deflator ........................................ Nonfarm business: Output per hour of all persons........................... Compensation per hour..................................... Real compensation per hour............................. Unit labor costs ................................................ Unit nonlabor payments .................................... Implicit price deflator ........................................ Nonfinancial corporations: Output per hour of all employees...................... Compensation per hour..................................... Real compensation per hour............................. Total unit costs................................................. Unit labor costs ............................................. Unit nonlabor costs........................................ Unit profits........................................................ Unit nonlabor payments .................................... Implicit price deflator ........................................ Manufacturing: Output per hour of all persons.......................... Compensation per hour..................................... Real compensation per hour............................. Unit labor costs ................................................ Unit nonlabor payments .................................... Implicit price deflator ........................................ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M O N T H L Y LA B O R R E V IE W 100 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 45. February 1989 • Current Labor Statistics: U n e m p l o y m e n t r a t e s , a p p r o x i m a t i n g U .S . International Comparisons Data c o n c e p t s , in n i n e c o u n t r i e s , q u a r t e r l y d a t a s e a s o n a lly a d ju s te d Annual average Country 1986 1988 1987 Total labor force basis United States................. Canada .......................... Australia ........................ Japan ............................ 6.9 9.5 8.0 2.8 6.1 8.8 8.1 2.9 France ........................... Germany........................ Italy 2.......................... Sweden3 ........................ United Kingdom.............. 10.4 6.8 7.4 2.6 11.2 10.6 6.8 7.7 1.9 10.2 United States................. Canada ......................... Australia ....................... Japan ........................... 7.0 9.6 8.1 2.8 6.2 8.9 8.1 2.9 France .......................... Germany....................... Italy1, 2 .......................... Sweden3 ....................... United Kingdom............. 10.6 7.0 7.5 2.6 11.2 10.8 6.9 7.9 1.9 10.3 Civilian labor force basis 1 Quarterly rates are for the first month of the quarter. 2 Many Italians reported as unemployed did not actively seek work in the past 30 days, and they have been ex cluded for comparability with U.S. concepts. Inclusion of such persons would about double the Italian unemployment rate in 1985 and earlier years and increase it to 11-12 per cent for 1986 onward. 3 Break in series beginning in 1987. The 1986 rate based on the new series was 2.2 percent. 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. 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 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 22,660 26,250 20,850 5,100 4,262 26,350 63.2 62.7 61.9 62.8 57.5 53.3 47.8 48.8 66.1 62.8 63.7 63.4 61.6 62.7 57.5 53.3 48.0 49.0 66.6 62.6 63.8 64.1 62.1 62.6 57.2 53.2 48.2 50.2 66.9 62.5 63.9 64.8 61.9 62.6 57.1 52.9 48.3 51.4 66.8 62.2 96,048 9,987 6,038 53,370 21,260 25,130 19,720 4,750 4,109 24,610 98,824 10,395 6,111 54,040 21,300 25,470 19,930 4,830 4,174 24,940 99,303 10,708 6,284 54,600 21,330 25,750 20,200 4,980 4,226 24,670 100,397 11,006 6,416 55,060 21,200 25,560 20,280 5,010 4,219 23,800 59.3 57.5 58.0 61.3 54.4 51.5 45.9 46.3 64.6 58.8 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 45.3 65.0 55.7 60.7 59.4 57.9 60.4 50.2 49.2 44.6 45.6 65.4 55.7 61.5 60.3 57.9 60.1 49.7 49.4 44.4 45.6 66.2 56.6 6,202 908 405 1,240 1,200 870 850 260 94 1,650 6,137 836 408 1,170 1,360 780 920 270 88 1,420 7,637 865 409 1,140 1,470 770 920 330 86 1,850 8,273 898 394 1,260 1,750 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 1,970 1,900 1,270 710 151 3,190 8,539 1,399 642 1,610 2,320 1,970 1,280 690 136 3,180 8,312 1,328 602 1,560 2,440 2,010 1,310 600 125 3,060 8,237 1,236 610 1,670 2,490 1,890 1,680 560 117 3,090 7,425 1,167 629 1,730 2,550 1,890 1,760 540 84 2,850 6.1 8.3 6.3 2.3 5.3 3.3 4.1 5.2 2.2 6.3 5.8 7.4 6.3 2.1 6.0 3.0 4.4 5.3 2.1 5.4 7.1 7.5 6.1 2.0 6.4 2.9 4.4 6.2 2.0 7.0 7.6 7.5 5.8 2.2 7.6 4.1 4.9 9.2 2.5 10.5 9.7 11.0 7.2 2.4 8.3 5.8 5.4 10.6 3.1 11.3 9.6 11.9 10.0 2.7 8.5 7.1 5.9 12.7 7.5 11.3 9.0 2.8 10.0 7.4 5.9 12.3 3.1 11.7 7.2 10.5 8.3 2.6 10.4 7.5 6.0 10.5 2.8 11.2 7.0 9.6 8.1 2.8 10.6 7.0 7.5 9.7 2.6 11.2 6.2 8.9 8.1 2.9 10.8 6.9 7.9 9.3 1.9 10.3 1980 1981 1982 1983 1984 1985 1986 1987 Labor force United States ................................................... Canada ............................................................ Australia........................................................... Japan ............................................................... France.............................................................. Germany.......................................................... Italy.................................................................. Netherlands...................................................... Sweden............................................................ United Kingdom................................................ 106,940 108,670 11,573 11,904 6,693 6,810 55,740 56,320 22,800 22,950 26,520 26,650 21,120 21,320 5,310 5,520 4,312 4,327 26,520 26,590 110,204 11,958 6,910 56,980 23,160 26,700 21,410 5,570 4,350 26,740 111,550 113,544 115,461 12,183 12,399 12,639 6,997 7,133 7,272 58,110 58,480 58,820 23,140 23,300 23,360 26,650 26,770 26,970 21,590 21,670 21,800 5,600 5,620 5,710 4,369 4,385 4,418 26,790 27,180 27,370 117,834 119,865 12,870 13,121 7,562 7,736 59,410 60,050 23,450 23,520 27,110 27,290 22,280 22,340 5,760 5,810 4,443 4,480 27,540 27,760 Participation rate1 United States................................................... Canada ............................................................ Australia........................................................... Japan ............................................................... France.............................................................. Germany.......................................................... Italy.................................................................. Netherlands...................................................... Sweden............................................................ United Kingdom................................................ 64.0 64.1 61.7 62.7 57.1 52.6 47.7 51.2 66.8 62.3 64.0 64.4 61.4 63.1 56.6 52.3 47.5 50.9 66.7 62.1 64.4 64.8 61.5 62.7 56.6 52.4 47.3 50.5 66.6 62.6 64.8 65.2 61.8 62.3 56.3 52.6 47.2 50.7 66.9 62.7 99,526 100,834 105,005 10,644 10,734 11,000 6,415 6,300 6,490 55,620 56,550 56,870 21,240 21,170 20,980 25,140 24,750 24,800 20,250 20,320 20,390 4,980 4,890 4,930 4,213 4,218 4,249 23,710 23,600 24,000 107,150 11,311 6,670 57,260 20,920 24,960 20,490 5,110 4,293 24,310 65.3 65.7 63.0 62.1 56.1 52.8 48.2 50.5 67.1 62.7 65.6 66.2 63.0 61.9 55.8 53.1 48.2 50.3 67.4 63.0 Employed United States ................................................... Canada ............................................................ Australia........................................................... Japan ............................................................... France .............................................................. Germany.......................................................... Italy.................................................................. Netherlands...................................................... Sweden............................................................ United Kingdom................................................ 109,597 112,440 11,634 11,955 6,952 7,107 57,740 58,320 20,960 20,970 25,220 25,400 20,610 20,590 5,200 5,270 4,326 4,396 24,450 24,910 Employment-population ratio2 United States ................................................... Canada ............................................................ Australia........................................................... Japan ............................................................... France.............................................................. Germany.......................................................... Italy.................................................................. Netherlands...................................................... Sweden............................................................ United Kingdom................................................ Unemployed United States................................................... Canada ............................................................ Australia........................................................... Japan ............................................................... France .............................................................. Germany.......................................................... Italy.................................................................. Netherlands...................................................... Sweden............................................................ United Kingdom................................................ Unemployment rate United States ................................................... Canada ............................................................ Australia........................................................... Japan ............................................................... France .............................................................. Germany.......................................................... Italy.................................................................. Netherlands................................................... Sweden............................................................ United Kingdom................................................ Labor force as a percent of the civilian working-age population. Employment as a percent of the civilian working-age population. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Data not available. - 11.9 M O N T H L Y LA BO R R EV IEW 47. February 1989 • Current Labor Statistics: International Comparisons Data Annual indexes of manufacturing productivity and related measures, 12 countries (1977 = 100) Item and country Output per hour Japan .............................................................. Belgium............................................................ Germany.......................................................... Italy.................................................................. Nonway............................................................. United Kingdom................................................ Output Japan ............................................................... Belgium............................................................ France.............................................................. Germany.......................................................... Italy.................................................................. Norway............................................................. United Kingdom................................................ Total hours Japan ............................................................... Belgium............................................................ Germany.......................................................... Italy.................................................................. Nonway............................................................. United Kingdom................................................ 1960 Germany.......................................................... Italy.................................................................. Norway............................................................. United Kingdom................................................ Germany.......................................................... Italy.................................................................. Norway............................................................ United Kingdom............................................... United Kingdom............................................... https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1976 1977 1979 1980 1981 1982 1983 1984 1985 1986 1987 93.4 90.3 83.1 78.8 83.3 83.8 84.0 90.9 81.5 94.4 94.8 95.5 92.9 88.6 87.7 86.5 94.6 88.7 90.1 91.1 86.2 97.7 100.2 94.9 97.1 94.8 94.3 95.3 98.2 94.4 96.4 98.9 95.8 100.4 101.7 99.1 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 101.4 102.0 114.8 111.9 106.5 109.7 108.2 110.5 112.3 107.3 110.9 102.5 101.4 98.2 122.7 119.2 112.3 110.6 108.6 116.9 113.9 107.4 112.7 101.9 103.6 102.9 127.2 127.6 114.2 113.9 111.0 124.8 116.9 108.0 113.2 107.0 105.9 98.3 135.0 135.2 114.6 122.0 112.6 129.6 119.4 109.2 116.5 113.5 112.0 105.4 142.3 148.2 120.2 125.1 119.2 138.6 127.5 117.2 125.5 123.2 118.1 114.4 152.5 154.3 119.6 127.6 123.7 147.8 140.5 124.1 131.0 130.0 123.6 117.3 161.1 159.0 117.6 131.0 128.4 151.7 145.5 126.8 136.1 134.7 127.7 117.7 163.8 165.3 113.5 134.9 128.4 152.9 144.8 125.9 136.0 138.3 132.0 120.5 170.5 170.3 114.9 139.2 130.3 157.8 145.5 134.9 141.8 147.8 52.5 41.3 19.2 41.9 49.2 36.5 50.0 36.4 44.8 54.8 52.6 71.2 78.6 73.5 69.9 78.6 82.0 75.5 86.6 78.0 84.4 86.5 92.5 95.0 96.3 93.5 91.9 96.4 95.9 90.5 96.1 90.5 95.8 99.2 100.3 104.8 84.9 89.9 86.2 92.7 95.0 90.3 91.0 86.9 92.7 101.9 106.1 96.3 93.1 96.5 94.8 99.7 99.6 95.6 98.0 97.9 99.0 102.1 106.1 98.2 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 108.1 108.5 113.9 104.1 105.4 105.3 106.6 108.6 106.1 100.5 103.6 100.5 103.2 103.6 124.1 106.8 110.1 104.6 106.6 115.4 106.6 99.5 104.0 91.7 104.8 107.4 129.8 105.7 106.6 102.9 104.9 115.1 106.7 98.6 100.6 86.2 98.4 93.6 137.3 110.1 108.3 104.0 102.4 113.4 105.0 96.8 100.1 86.4 104.7 99.6 148.2 114.8 115.6 103.8 103.6 114.3 107.0 97.2 105.2 88.9 117.5 112.5 165.4 117.5 121.0 102.6 106.4 119.0 113.3 102.7 111.5 92.6 122.0 118.8 177.0 119.9 123.0 101.5 110.0 121.8 116.7 106.5 115.3 95.2 124.7 121.9 178.0 122.0 123.9 102.1 110.8 125.8 118.1 106.9 114.7 95.4 130.1 128.5 184.1 123.1 120.5 103.3 111.6 131.2 118.7 108.3 119.2 100.6 84.4 81.4 82.7 127.1 132.4 97.6 123.8 102.8 138.4 101.0 124.4 127.3 97.3 97.2 107.9 130.2 125.1 105.7 121.7 107.4 131.2 106.4 114.6 118.1 103.1 103.6 110.7 122.3 115.2 107.9 114.4 99.6 117.6 105.1 105.7 109.8 91.4 101.5 98.2 107.1 100.4 101.8 101.0 95.4 107.6 104.3 105.9 101.5 95.9 101.8 100.6 104.6 101.4 101.3 101.6 99.0 103.3 101.7 104.3 99.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 106.5 106.3 99.3 93.0 99.0 95.9 98.5 98.2 94.4 93.6 93.4 98.0 101.7 105.5 101.2 89.6 98.0 94.6 98.1 98.7 93.6 92.6 92.3 90.1 101.1 104.3 102.0 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 88.0 88.6 85.9 76.2 93.5 94.5 104.2 77.5 96.2 83.0 86.9 82.5 83.9 82.9 83.9 72.2 99.5 98.3 108.5 76.1 101.2 80.4 86.1 80.5 80.6 82.8 85.1 71.2 98.7 101.2 109.8 75.4 104.6 77.5 85.7 80.3 80.2 84.0 84.7 70.7 97.7 103.6 108.7 73.8 109.2 75.7 86.3 82.3 81.5 84.9 84.3 69.0 98.6 106.6 108.0 72.3 104.9 74.2 85.7 83.2 81.6 80.3 84.0 68.0 36.5 27.5 8.9 13.8 12.6 15.0 18.8 8.4 12.5 15.8 14.7 15.2 57.4 47.9 33.9 34.9 36.3 36.3 48.0 26.1 39.0 37.9 38.5 31.4 68.8 60.0 55.1 53.5 56.1 51.9 67.5 43.7 60.5 54.5 54.2 47.9 85.1 78.9 84.2 79.0 81.0 76.1 84.5 70.2 82.2 77.2 77.3 76.4 92.1 90.3 90.7 89.5 90.4 87.8 91.2 84.2 91.9 88.8 91.5 88.4 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 118.6 118.6 113.4 117.4 123.1 128.4 116.1 134.7 117.0 116.0 120.1 139.0 132.4 131.3 120.7 130.3 135.9 148.5 125.6 160.2 123.6 128.0 133.6 168.6 145.2 151.1 129.8 144.5 149.7 172.0 134.5 198.4 129.1 142.8 148.1 193.4 157.5 167.0 136.6 150.7 162.9 204.0 141.0 238.3 137.5 156.0 158.9 211.7 162.4 177.2 140.7 159.8 174.2 225.1 148.3 282.9 144.0 173.5 173.3 226.6 168.0 185.6 144.9 173.1 184.1 245.0 155.5 316.5 150.0 188.3 189.7 242.3 176.4 194.4 151.4 183.6 196.2 265.4 164.6 348.0 157.4 204.3 212.4 258.8 183.0 203.5 158.8 190.8 202.7 277.2 171.7 359.4 162.2 224.2 228.7 277.9 186.9 214.0 161.1 194.5 226.3 285.7 178.6 380.5 166.5 262.6 244.8 297.6 58.7 54.2 38.4 41.7 33.8 40.2 46.6 23.7 38.5 29.2 34.8 27.2 71.0 63.4 52.3 57.8 55.4 50.8 67.4 36.0 60.7 46.6 47.7 39.1 73.7 66.5 66.4 67.9 67.4 62.0 80.3 48.1 74.3 57.8 57.2 50.2 91.7 89.1 96.0 91.2 85.6 85.8 93.8 77.1 95.4 79.0 77.1 60.5 94.9 95.3 96.2 93.9 92.1 93.0 94.6 85.1 96.0 88.5 90.0 89.2 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 117.0 116.2 98.8 104.9 115.7 117.0 107.3 121.9 104.1 108.1 108.3 135.6 130.6 133.7 98.4 109.3 121.0 134.3 115.7 137.0 108.5 119.1 118.6 165.5 140.1 146.7 102.0 113.2 131.1 151.0 121.2 158.9 110.4 132.2 130.9 180.7 148.7 170.0 101.2 111.5 142.2 167.2 125.2 184.0 115.2 142.9 136.3 186.5 145.0 168.1 98.9 107.8 144.9 179.9 124.4 204.1 113.0 148.0 138.1 184.0 142.2 162.3 95.0 112.2 153.9 192.0 125.8 214.1 106.8 151.8 144.8 186.4 142.7 165.7 94.0 115.5 166.8 202.7 128.3 229.4 108.1 161.1 156.1 192.1 143.3 172.8 97.0 115.5 178.7 205.4 133.7 235.1 112.0 178.1 168.2 200.9 141.7 177.5 94.5 114.2 197.0 205.2 137.1 241.2 114.4 194.7 172.6 201.3 58.7 59.4 28.5 30.0 29.5 40.3 25.9 33.7 25.1 21.8 30.1 43.7 71.0 64.5 39.1 41.7 44.4 45.2 42.9 50.6 41.2 34.7 41.1 53.7 73.7 70.6 65.6 62.7 67.2 68.6 70.4 73.1 65.6 53.5 58.7 70.5 91.7 93.1 86.7 89.1 89.6 98.5 88.7 104.3 92.8 80.6 83.2 102.5 94.9 102.7 86.9 87.2 91.5 95.8 87.3 90.5 89.1 86.4 92.3 92.2 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 117.0 105.4 121.3 128.2 132.0 135.2 135.9 129.5 127.4 113.6 112.9 165.0 130.6 121.5 116.8 134.2 129.0 156.4 147.9 141.4 134.1 128.4 125.3 220.6 140.1 130.0 123.8 109.6 110.3 136.4 124.9 123.2 108.9 122.5 115.4 209.6 148.7 146.3 108.8 87.2 102.3 124.9 119.7 119.9 105.8 117.8 96.9 186.9 145.0 144.9 111.5 75.6 95.1 116.1 113.1 118.6 97.1 107.9 80.4 159.8 142.2 133.2 107.2 69.6 89.3 108.1 102.6 107.6 81.6 99.0 78.2 142.8 142.7 128.9 105.6 69.7 94.5 111.0 101.2 106.1 80.0 99.8 81.1 142.9 143.3 132.1 154.2 92.6 132.5 145.8 143.0 139.2 112.2 128.1 105.4 169.0 141.7 142.3 175.0 109.6 172.7 167.8 177.0 164.2 138.6 153. / 121.5 189.2 Unit labor costs: U.S. dollar basis Japan .............................................................. Belgium........................................................... 1975 80.8 75.6 64.8 60.4 65.6 71.4 71.2 72.7 64.3 81.3 80.7 80.4 Unit labor costs: National currency basis Japan ............................................................... Belgium............................................................ 1973 62.2 50.7 23.2 33.0 37.2 37.4 40.3 35.4 32.4 54.3 42.3 55.9 Compensation per hour Japan ............................................................... Belgium............................................................ 1970 48. Occupational injury and illness incidence rates by industry, United States Incidence rates per 100 full-time workers2 1979 1980 1981 1982 1983 1984 1985 1986 1987 PRIVATE SECTOR3 Total cases........................................................................................ Lost workday cases ........................................................................... Lost workdays................................................................................. 9.5 4.3 67.7 8.7 4.0 65.2 8.3 3.8 61.7 7.7 3.5 58.7 7.6 3.4 58.5 8.0 3.7 63.4 7.9 3.6 64.9 7.9 3.6 65.8 8.3 3.8 69.9 11.7 5.7 83.7 11.9 5.8 82.7 12.3 5.9 82.8 11.8 5.9 86.0 11.9 6.1 90.8 12.0 6.1 90.7 11.4 5.7 91.3 11.2 5.6 93.6 11.2 5.7 94.1 11.4 6.8 150.5 11.2 6.5 163.6 11.6 6.2 146.4 10.5 5.4 137.3 8.4 4.5 125.1 9.7 5.3 160.2 8.4 4.8 145.3 7.4 4.1 125.9 8.5 4.9 144.0 16.2 6.8 120.4 15.7 6.5 117.0 15.1 6.3 113.1 14.6 6.0 115.7 14.8 6.3 118.2 15.5 6.9 128.1 15.2 6.8 128.9 15.2 6.9 134.5 14.7 6.8 135.8 16.3 6.8 111.2 15.5 6.5 113.0 15.1 6.1 107.1 14.1 5.9 112.0 14.4 6.2 113.0 15.4 6.9 121.3 15.2 6.8 120.4 14.9 6.6 122.7 14.2 6.5 134.0 16.6 6.7 123.1 16.3 6.3 117.6 14.9 6.0 106.0 15.1 5.8 113.1 15.4 6.2 122.4 14.9 6.4 131.7 14.5 6.3 127.3 ■ 14.7 6.3 132.9 14.5 6.4 139.1 16.0 6.9 124.3 15.5 6.7 118.9 15.2 6.6 119.3 14.7 6.2 118.6 14.8 6.4 119.0 15.8 7.1 130.1 15.4 7.0 133.3 15.6 7.2 140.4 15.0 7.1 135.7 13.3 5.9 90.2 12.2 5.4 86.7 11.5 5.1 82.0 10.2 4.4 75.0 10.0 4.3 73.5 10.6 4.7 77.9 10.4 4.6 80.2 10.6 4.7 85.2 11.9 5.3 95.5 20.7 10.8 175.9 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 18.9 9.6 176.5 17.6 7.1 99.6 16.0 6.6 97.6 15.1 6.2 91.9 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 15.4 6.7 103.6 16.8 8.0 133.7 15.0 7.1 128.1 14.1 6.9 122.2 13.0 6.1 112.2 13.1 6.0 112.0 13.6 6.6 120.8 13.9 6.7 127.8 13.6 6.5 126.0 14.9 7.1 135.8 17.3 8.1 134.7 15.2 7.1 128.3 14.4 6.7 121.3 12.4 5.4 101.6 12.4 5.4 103.4 13.3 6.1 115.3 12.6 5.7 113.8 13.6 6.1 125.5 17.0 7.4 145.8 19.9 8.7 124.2 18.5 8.0 118.4 17.5 7.5 109.9 15.3 6.4 102.5 15.1 6.1 96.5 16.1 6.7 104.9 16.3 6.9 110.1 16.0 6.8 115.5 17.0 7.2 121.9 14.7 5.9 83.6 13.7 5.5 81.3 12.9 5.1 74.9 10.7 4.2 66.0 9.8 3.6 58.1 10.7 4.1 65.8 10.8 4.2 69.3 10.7 4.2 72.0 11.3 4.4 72.7 8.6 3.4 51.9 8.0 3.3 51.8 7.4 3.1 48.4 6.5 2.7 42.2 6.3 2.6 41.4 6.8 2.8 45.0 6.4 2.7 45.7 6.4 2.7 49.8 7.2 3.1 55.9 11.6 5.5 85.9 10.6 4.9 82.4 9.8 4.6 78.1 9.2 4.0 72.2 8.4 3.6 64.5 9.3 4.2 68.8 9.0 3.9 71.6 9.6 4.1 79.1 13.5 5.7 105.7 7.2 2.8 40.0 6.8 2.7 41.8 6.5 2.7 39.2 5.6 2.3 37.0 5.2 2.1 35.6 5.4 2.2 37.5 5.2 2.2 37.9 5.3 2.3 42.2 5.8 2.4 43.9 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 10.2 4.3 70.9 10.7 4.6 81.5 Agriculture, forestry, and fishing3 Total cases........................................................................................ Lost workday cases ........................................................................... Lost workdays.................................................................................... Mining Total cases...................................................................................... Lost workday cases ........................................................................... Lost workdays.................................................................................... Construction Total cases........................................................................................ Lost workday cases ........................................................................... Lost workdays.................................................................................... General building contractors: Total cases........................................................................................ Lost workday cases ........................................................................... Lost workdays.................................................................................... Heavy construction contractors: Total cases........................................................................................ Lost workday cases ........................................................................... Lost workdays.................................................................................... Special trade contractors: Total cases........................................................................................ Lost workday cases ........................................................................... Lost workdays.................................................................................... Manufacturing Total cases........................................................................................ Lost workday cases ........................................................................... Lost workdays.................................................................................. Durable goods Lumber and wood products: Total cases....................................................................................... Lost workday cases.................................................................. Lost workdays........................................................................ Furniture and fixtures: Total cases.................................................................. Lost workday cases........................................................................... Lost workdays.................................................................................... Stone, clay, and glass products: Total cases......................................................................... Lost workday cases .......................................................................... Lost workdays.................................................................. Primary metal Industries: Total cases..................................................................................... Lost workday cases........................................................................... Lost workdays.............................................................................. Fabricated metal products: Total cases............................................................. Lost worxday cases ........................................................................... Lost workdays.................................................................................... Machinery, except electrical: Total cases............................................................... Lost workday cases ......................................................................... Lost workdays.................................................................... Electric and electronic equipment: Total cases....................................................................... Lost workday cases .......................................................................... Lost workdays.................................................................................... Transportation equipment: Total cases...................................................................................... Lost workday cases ........................................................................... Lost workdays.................................................................................... Instruments and related products: Total cases................................................................................... Lost workday cases ........................................................................... Lost workdays........................................................................ Miscellaneous manufacturing industries: Total cases...................................................................................... Lost workday cases ................................................................... Lost workdays................................................................................... See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M O N T H L Y LA B O R REV IEW February 1989 • Current Labor Statistics: Injury and Illness Data 48. Continued— Occupational injury and illness incidence rates by industry, United States Incidence rates per 100 full-time workers2 Industry and type of case' 1979 1980 1982 1981 1985 1984 1983 1986 1987 Nondurable goods Food and kindred products: Tobacco manufacturing: Textile mill products: Apparel and other textile products: Paper and allied products: Printing and publishing: Chemicals and allied products: Total cases........................................................................................ Lost workday cases ........................................................................... Petroleum and coal products: Rubber and miscellaneous plastics products: 19.9 9.5 141.8 18.7 9.0 136.8 17.8 8.6 130.7 16.7 8.0 129.3 16.5 7.9 131.2 16.7 8.1 131.6 16.7 8.1 138.0 16.5 8.0 137.8 17.7 8.6 153.7 9.3 4.2 64.8 8.1 3.8 45.8 8.2 3.9 56.8 7.2 3.2 44.6 6.5 3.0 42.8 7.7 3.2 51.7 7.3 3.0 51.7 6.7 2.5 45.6 8.6 2.5 46.4 9.7 3.4 61.3 9.1 3.3 62.8 8.8 3.2 59.2 7.6 2.8 53.8 7.4 2.8 51.4 8.0 3.0 54.0 7.5 3.0 57.4 7.8 3.1 59.3 9.0 3.6 65.9 6.5 2.2 34.1 6.4 2.2 34.9 6.3 2.2 35.0 6.0 2.1 36.4 6.4 2.4 40.6 6.7 2.5 40.9 6.7 2.6 44.1 6.7 2.7 49.4 7.4 3.1 59.5 13.5 6.0 108.4 12.7 5.8 112.3 11.6 5.4 103.6 10.6 4.9 99.1 10.0 4.5 90.3 10.4 4.7 93.8 10.2 4.7 94.6 10.5 4.7 99.5 12.8 5.8 122.3 7.1 3.1 45.1 6.9 3.1 46.5 6.7 3.0 47.4 6.6 2.8 45.7 6.6 2.9 44.6 6.5 2.9 46.0 6.3 2.9 49.2 6.5 2.9 50.8 6.7 3.1 55.1 7.7 3.5 54.9 6.8 3.1 50.3 6.6 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 7.0 3.1 58.8 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 7.3 3.1 65.9 17.1 8.2 127.1 15.5 7.4 118.6 14.6 7.2 117.4 12.7 6.0 100.9 13.0 6.2 101.4 13.6 6.4 104.3 13.4 6.3 107.4 14.0 6.6 118.2 15.9 7.6 130.8 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 12.4 5.8 114.5 10.0 5.9 107.0 9.4 5.5 104.5 9.0 5.3 100.6 8.5 4.9 96.7 8.2 4.7 94.9 8.8 5.2 105.1 8.6 5.0 107.1 8.2 4.8 102.1 8.4 4.9 108.1 8.0 3.4 49.0 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 7.7 3.4 56.1 8.8 4.1 59.1 8.2 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 7.4 3.7 64.0 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 7.8 3.3 52.9 2.1 .9 13.3 2.C .8 12.2 1.9 .8 11.6 2.C .9 13.5 2.0 .9 12.8 1.9 .9 13.6 2.C .9 15.4 2.0 .9 17.1 2.0 .9 14.3 5.5 2.5 38.1 5.2 2.C 35.8 5.C 2.2 35.9 4.9 2.C 35.8 2A 5.2 2.6 37.C 41.1 5.4 2.8 45.4 5.3 2.5 43.C 5.5 2.7 45.8 Leather and leather products: Transportation and public utilities Wholesale and retail trade Wholesale trade: Retail trade: Finance, insurance, and real estate Services ! 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 I 5.1 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. 1988U.S. INDUSTRIAL OUTLOOK The U.S. Government’s Best-Selling Business Reference Book • Official Department of Commerce forecasts for over 350 industries • Y e a r-a h e a d and 5 -y e a r fo re c a s ts and industry-by-industry reviews • 650 pages of outlooks and historical summary by over 100 skilled industry analysts • Vast data base— tailored for business and investment planning Order the completely new 1988 edition now. m a il t h is fo r m TO: Superintendent of Documents, Washington, D.C. 20402 Please send__________ copies of the at $24 per copy to: 1988 U.S. INDUSTRIAL OUTLOOK $_____________ Total Enclosed (Check/Money Order) Name Charge my: Company Name City D □ Account Number Street https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (SN 003-009-00522-1) State ZIP Code Signature GPO Deposit Account MasterCard D VISA Expiration Date U.S. Department of Labor Bureau of Labor Statistics Washington, D.C. 20212 Second Class Mail Postage and Fees Paid U.S. Department of Labor ISSN 0098-1818 Official Business Penalty for Private Use, $300 RETURN POSTAGE GUARANTEED https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis United Y ears o f S ta te s s' M! 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