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MONTH t y *;'LA BO R REVIEW U.S Department of: Labor Bureau of Labor Statistics March 1987 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis In this issue: Expanding the white-collar pay survey Comparing medical care expenditures Quality of the Consumer Expenditure Survey »Migration of black Americans, 1915-1940 U.S. DEPARTMENT OF LABOR William E. Brock, 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) 565-2331 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. Ehrenhalt 1515 Broadway, Suite 3400, New York, NY 10036 Phone: (212) 944-3121 New Jersey New York Puerto Rico Virgin Islands BUREAU OF LABOR STATISTICS Subscription price per year—$16 domestic; $20 foreign. Single copy $4.75 domestic; $5.94 foreign. Subscription prices and distribution policies for the Monthly Labor Review (ISSN 0098-1818) and other Government publications are set by the Government Printing Office, an agency of the U.S. Congress. Send correspondence on circulation and subscription matters (including address changes) to: Superintendent of Documents, Government Printing Office, Washington, DC 20402 Make checks payable to Superintendent of Documents. The Secretary of Labor has determined that the publication of this periodical is necessary in the transaction of the public business required by law of this Department. Second-class postage paid at Washington, DC, and at additional mailing addresses. Region III—Philadelphia: Alvin I. Margulis 3535 Market Street P.O. Box 13309, Philadelphia, PA 19101 Phone: (215) 596-1154 Delaware District of Columbia Maryland Pennsylvania Virginia West Virginia Region IV—Atlanta: Donald M. Cruse 1371 Peachtree Street, N.E., Atlanta, GA 30367 Phone: (404) 347-4418 Alabama Florida Georgia Kentucky Mississippi North Carolina South Carolina Tennessee Region V—Chicago: Lois L. Orr 9th Floor, Federal Office Building, 230 S. Dearborn Street Chicago, IL 60604 Phone: (312) 353-1880 Illinois Indiana Michigan Minnesota Ohio Wisconsin Region VI—Dallas: Bryan Richey Federal Building, Room 221 525 Griffin Street, Dallas, TX 75202 Phone: (214) 767-6971 Arkansas Louisiana New Mexico Oklahoma Texas M arch cover: The photograph on the front and back covers depicts an Afro-American family in Florida packing up to head North as part of the first large black migration from the South. The photographs on the inside back cover depict Afro-Americans at work in the North. The photographs are part of the exhibition, “ Field to Factory: Afro-American Migration, 1915-1940,“ which is on display at the National Museum of American History, Smithsonian Institution, Washington, D.C. from February 5, 1987 through February 1988. Cover design by Melvin B. Moxley https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Regions VII and VIII—Kansas City: Gunnar Engen 911 Walnut Street, Kansas City, MO 64106 Phone: (816) 374-2481 VII Iowa Kansas Missouri Nebraska VIII Colorado Montana North Dakota South Dakota Utah Wyoming Regions IX and X—San Francisco: Sam M. Hirabayashi 450 Golden Gate Avenue, Box 36017 San Francisco, CA 94102 Phone: (415) 556-4678 IX American Samoa Arizona California Guam Hawaii Nevada Trust Territory of the Pacific Islands X Alaska Idaho Oregon Washington MONTHLY LABOR REVIEW MARCH 1987 VOLUME 110, NUMBER 3 RESEARc i LIBRARY Henry Lowenstern, Editor-in-Chief Robert W. Fisher, Executive Editor [Federai Hess ve Bank °f St. Louis M A ? Î0 l9 8 7 John D. Morton 3 BLS prepares to broaden scope of its white-collar pay survey The Survey of Professional, Administrative, Technical, and Clerical Pay is being expanded to cover more services industries and small establishments Raymond Gieseman https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 8 The Consumer Expenditure Survey: quality control A vital component of the bls postsurvey evaluation is comparison with other data on aggregate spending, most notably those obtained from the National Accounts E. Raphael Branch 15 Comparing medical care expenditures Data from the Consumer Expenditure Survey and administrative data from the Health Care Financing Administration show similar spending on medical care Barry Alan Mirkin 19 Early retirement: an international overview Western governments and firms have increasingly turned to early-out schemes to absorb excess labor supply, but the projected aging of populations threatens this alternative Spencer R. Crew 34 The Great Migration of Afro-Americans, 1915-40 Between the World Wars, more than 1 million black Americans left the South to seek opportunity and fuller citizenship in the North REPORTS Tiziano Treu William Earle Klay 37 39 Italian labor relations: a system in transition Japanese unions and microelectronics-based automation DEPARTMENTS 3 Labor month in review 37 Foreign labor developments 41 Major agreements expiring next month 42 Developments in industrial relations 45 Book reviews 49 Current labor statistics Labor M onth In Review KLEIN AWARD. The Lawrence R. Klein Award trustees selected the authors of the best articles published in the Monthly Labor Review in 1986 as winners of the 18th an nual Klein Award. The award will be presented at the Bureau of Labor Statistics awards ceremony on April 23. The award for the best article by a b l s author is shared by Ronald E. Kutscher, Associate Commis sioner for Economic Growth and Employ ment Projections, and Valerie A. Personick, an economist on his staff, for “ Dein dustrialization and the shift to services,” in the June issue. Winners for the best article by an author outside of the b l s are co authors Sheldon Danziger and Peter Gottschalk for “ Work, poverty, and the working poor: a multifaceted problem,” in the September issue. Danziger is a professor of social work and director of the Institute for Research on Poverty, University of Wisconsin—Madison. Gottschalk is a pro fessor of economics at Bowdoin College, and a research affiliate with the Institute for Research on Poverty. Two authors cited for honorable mention were BLS economist Philip L. Rones for “ An analysis of regional employment growth, 1973-85,” in the July issue, and Henry P. Guzda, an industrial relations specialist with the U.S. Department of Labor, for “ Ellis Island a welcome site? Only after years of reform,” in the same issue. more, sector output in real terms has bounced back from the recession and by 1984 had reached a new peak. To assess micro-level developments, the authors examined data for 150 detailed in dustries over the period 1969-84. One-half of the industries, including many high-tech durable goods industries, showed consistent gains in both employment and output over the period. Another 37 industries—including tex tiles, chemicals, and motor vehicles—had out put gains but employment losses, still an in dication of health if it arises from greater efficiency. But the remaining 24 industries had declines in both output and employment. These industries, all in the manufacturing sector, tend to have longstanding problems related to plant obsolescence, import com petition, and other factors. The authors conclude, “ While some manufacturing industries clearly have been in a long-term decline...our data indicate that the United States is not losing its in dustrial base. Most manufacturing in dustries, indeed many that would be con sidered ‘heavy’ manufacturing, are at least expanding production, if not employment. Future expenditures for new capital equip ment and a return to more balanced inter national currency exchange rates are pro jected to boost demand for U.S. goods for many years.” The Danziger-Gottschalk article probes the The Kutscher-Personick article presents an analysis designed to determine whether the employment shift to services means that the Nation is losing its industrial base. The authors’ findings, based on employment and production data for major sectors and detail ed industries, indicate that it does not. In fact, the shift to services has largely been a relative one. In absolute terms, employ ment in manufacturing has not declined ap preciably over the last two decades, and the most recent b l s projections show manufac turing employment recovering most of its current recession-related losses. Further https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis relationship of work effort and earnings levels to poverty status. Their study shows that most able-bodied heads of poor households have strong labor force attach ment, but that their employment tends to be intermittent, low-paying, or both. The 1984 poverty rate for all households was somewhat below that for 1967 and about the same as in 1971. However, large changes in the labor market characteristics of the poor occurred over the period. In 1984, the ma jority of heads of poor households were not expected to work because they were over age 65, disabled, students, or women with children under age 6. About a fourth of all household heads who were expected to work had low weekly earnings (under $204). But about 60 percent of their households escaped poverty because of such factors as small family size, multiple earners in the household, or receipt of public cash transfers or private income other than earnings. Of the remaining poor households with an able-bodied head, most had substantial labor market attachment. About half of all poor able-bodied mothers with no child under age 6 worked at some time during 1984, compared with about 80 percent of men who headed poor households with children. But, “ Despite this work effort, poor households remain in poverty because of low annual earn ings, which reflect both low weekly earn ings and less than full-year work. And most of these households would remain poor even if their heads worked a full year at their cur rent weekly earnings rate.” About the award. Trustees of the Klein Award Fund are Lawrence R. Klein; Charles D. Stewart, president; Ben Burdetsky, secretary-treasurer; Peter Henle; Harold Goldstein; Howard Rosen; and Henry Lowenstern. The award was established in 1968 in honor of Lawrence R. Klein, editor-in-chief of the Monthly Labor Review for 22 years until his retire ment in 1968. Instead of accepting a retire ment gift, Klein donated it and matched the amount collected to initiate the fund. Since then, he has contributed regularly to the fund as have others. The purpose of the award is to encourage Review articles that (1) exhibit originality of ideas or method of analysis, (2) adhere to the principles of scientific inquiry, and (3) are well written. Each winning arti cle carries a cash prize of $200. Tax-deductible contributions to the fund may be sent to Ben Burdetsky, Secretary Treasurer, Lawrence R. Klein Fund, c/o School of Government and Business Ad ministration, The George Washington University, Washington DC 20052. □ BLS prepares to broaden scope of its white-collar pay survey The Survey of Professional, Administrative, Technical, and Clerical Pay is being expanded to cover more services industries and small establishments; in 1987 and 1988, test studies also will be conducted to plan for an even broader based survey of pay and benefits for white-collar workers Jo h n D . M o r t o n Over the last 25 years, the Bureau of Labor Statistics’ an nual Survey of Professional, Administrative, Technical, and Clerical Pay ( p a t c survey) has become a key source of information on salaries for a number of occupations. For example, the 1985 survey reported on 25 occupations— ranging from file clerk and drafter to attorney and engi neer— by salary and employment. Because occupations typ ically are divided by b l s into two or more work levels (defined by specific duties and responsibilities), pay varia tions related to level characteristics are readily identifiable.1 An expansion of survey coverage over the 1986-87 pe riod will increase the usefulness of p a t c findings. Prior to 1986, the survey was limited to medium and large establish ments. It covered most private sector industries but ex cluded important portions of the services industries, such as hotels, hospitals, and educational institutions. By mid1987, the survey will have expanded to smaller establish ments and all private services industries. In addition, b l s is planning test studies in 1987 and 1988 to assist in develop ing a new, broad-based survey of white-collar pay and ben efits in the private- and public sectors that will eventually replace the p a t c survey. The 1986-87 coverage enhances the occupational data reported previously in the p a t c survey. The expansion also John D. Morton is a labor economist in the Office of Wages and Industrial Relations, Bureau o f Labor Statistics. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis permits additional occupations to be surveyed, especially in the health-related field, and allows more intensive analysis of findings.2 The 1987-88 test studies will address the following issues: the feasibility of including, in a broad-based survey of occupational pay levels and structures, such important jobs as teachers and sales workers; ways to implement a probability-based selection of jobs for such a survey; ap proaches for measuring employee benefits as well as pay; and the feasibility of accounting in an establishment-based survey for the importance of employee characteristics, such as education and experience, as explanations for pay varia tion among employees in a given occupation. Survey background From its inception in 1959-60, the p a t c survey has been closely related to the pay-setting process for white-collar employees of the Federal Government. The Federal Salary Reform Act of 1962 established the principle of making salary rates for these employees comparable to those in private industry for the same levels of work. The compara bility principle was continued in the Federal Pay Compara bility Act of 1970, which currently governs general pay adjustments for Federal white-collar employees. Under the 1970 Act, a Pay Agent designated by the Pres ident (currently, the Secretary of Labor and the directors of the Office of Management and Budget and the Office of 3 MONTHLY LABOR REVIEW March 1987 • Expansion o f p a t c Survey Personnel Management) sets up comparability procedures and reports annually to the President. The report compares salaries of Federal employees with those paid in private industry for the same levels of work, as determined by the p a t c survey . The Pay Agent calculates the Federal pay adjustment needed to achieve comparability with private industry. If the President decides on a comparability adjustment, it becomes effective automatically the first pay period on or after Octo ber 1; if a comparability adjustment is deemed inappropriate because of “national emergency or economic conditions af fecting the general welfare,” the President must submit an alternative plan to the Congress before September 1. The alternative plan becomes effective unless rejected within 30 days of submission by a majority vote in either the House of Representatives or the Senate. If the Congress rejects an alternative plan, the comparability increase calculated by the Pay Agent becomes effective in October.3 The legislation governing the comparability process calls for a comparison of Federal salaries with those in “private enterprise,” but does not define the scope of the comparison. It requires a survey of private industry by the b l s — the p a t c Exhibit 1. Changes to the patc survey— the design of which is determined by the Presi dent’s Pay Agent. Therefore, the Pay Agent determines the industries and occupations to be studied and the minimum size of surveyed establishments. In response to decisions of the Pay Agent, the scope of the p a t c survey has changed over the years. In the early 1960’s, for example, the survey was limited to establishments in specified industries employing at least 250 workers and located in metropolitan areas.4 Since then, the survey has expanded to nonmetropolitan areas, more nonmanu facturing industries, and to smaller establishments. (See exhibit 1.) The occupations included in the p a t c survey have also changed. (See exhibit 2.) Of the 19 occupations surveyed in 1960-61, 15 remained in the 1985 survey, although their definitions and work levels have been modified.5 Because of modifications in occupational structure and the needs of the comparability process, 10 more jobs were added by 1985.6 The 1985 survey provided data for 107 work levels that span the 25 occupations studied.7 Industrial coverage and minimum establishment size were as follows: mining and construction, 250 workers; manufacturing, 100 or 250 survey, 1959-86 Number of occupational work levels studied Year Scope 1959-60 An initial experimental survey covered establishments in metropolitan areas employing 100 workers or more in manufacturing; transportation (part), communications, electric, gas and sanitary services; wholesale trade; retail trade; finance, insurance, and real estate; engi neering and architectural services; and research, development, and testing laboratories. 77 1961 Minimum establishment size raised from 100 to 250 workers. 68 1965 Nonmetropolitan areas added. 74 1966 Minimum establishment size lowered from 250 to 100 workers in transportation, commu nications, electric, gas, and sanitary services; wholesale trade; engineering and architec tural services; and research, development, and testing laboratories; and to 50 workers in finance, insurance, and real estate. (No change in manufacturing or retail trade.) 82 1972 Minimum establishment size raised from 50 to 100 workers in finance, insurance, and real estate. 77 1977 Added mining, construction, and transportation industries not previously included (250 minimum employment); consumer credit and mercantile reporting and adjustment and col lection agencies; computer and data processing services; management, consulting, and public relations services; and noncommercial education, scientific, and research organiza tions (100 minimum employment). Minimum establishment size lowered from 250 to 100 workers in the chemicals, petroleum refining, machinery, transportation equipment, and measuring, analyzing, and controlling instruments industries. 78 1979 Added accounting, auditing, and bookkeeping services (50 workers minimum). 89 1980-85 No change. 107 1986 Minimum establishment size lowered to 50 workers in all covered industries. 112 4 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis workers; transportation, communications, electric, gas, and sanitary services, 100 or 250 workers; wholesale trade, 100 workers; retail trade, 250 workers; finance, insurance, and real estate, 100 workers; and selected services, 50 or 100 workers. Approximately 43,000 establishments were within scope of the survey. They employed a total of 22.7 million workers, 2.1 million of whom were in the surveyed occupa tions. Expansion proposals The adequacy of the scope of the p a t c survey has long been a matter of controversy. In 1973, the U.S. General Accounting Office recommended legislative changes that would allow inclusion of State and local governments in the pay comparisons.8 The President’s Panel on Federal Com pensation echoed this suggestion in 1975, as did President Carter’s Reorganization Project in 1978, the President’s Pri vate Sector Survey on Cost Control in 1984, and the Pay Agent in its report to the President in 1985.9 Some of these groups also recommended inclusion of private services in dustries not covered, while others suggested lowering the minimum employment size of surveyed establishments. While some changes occurred in 1977 and 1979, several longstanding recommendations were not acted upon until 1985, when the President’s Cabinet Council on Manage ment and Administration reviewed Federal pay policy and issued a formal proposal for expanding the p a t c survey. The proposal called for bringing within the p a t c survey scope: small private sector establishments, that is, units employing as few as 20 workers; services industries, such as hotels, hospitals, and educational institutions; and State and local governments. As indicated in the 1985 Pay Agent’s report, information from State and local governments cannot be used in the comparability process without enabling legisla tion, but can provide a basis for discussing the technical merits of such inclusion. To conserve resources, the Cabinet Council’s proposal called for splitting the p a t c survey universe into two parts— (1) the existing (1985) survey scope and (2) all services industries plus State and local governments.10 These seg ments were to be surveyed on alternating biennial cycles, with data for the segment not surveyed in a given year estimated by adjusting the previous year’s findings by the percentage change in an appropriate component of the b l s Employment Cost Index. This plan was subsequently re vised by the Congress, as discussed later. 1986 coverage In March 1986, b l s began the expansion of the p a t c survey proposed by the Cabinet Council. The same indus tries were surveyed in 1986 as in 1985, but the minimum employment size of establishments covered by the survey was reduced to 50 workers. Coverage of smaller establishments enhances the useful ness of findings for individual occupations and allows more https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Exhibit 2. The changing occupational profile of the survey, 1961 to 1985 Occupation patc W ork levels studied in 1985 Occupations in the 1961 and 1985 surveys: Accountants.................................. A uditors........................................ Chief accountants ....................... A ttorneys...................................... Chemists ...................................... Engineers...................................... Job an aly sts.................................. Directors of personnel ............... 6 4 5 6 8 8 4 5 Drafters ........................................ Accounting c le rk s ....................... File clerks .................................... Key entry operators ................... Messengers .................................. Stenographers .............................. T y p ists.......................................... 5 4 3 2 1 2 2 Occupations in the 1961 survey but not in the 1985: Managers, office services........... Bookkeeping machine operators Switchboard operators ............... Tabulating machine operators .. 4 2 2 2 Occupations in the 1985 survey but not in the 1961: Public accountants ..................... B u y e rs.......................................... Computer programmers ............. Computer systems analysts ___ Engineering technicians ............. Computer operators ................... Photographers .............................. S ecretaries.................................... Personnel clerks/assistants ........ Purchasing clerks/assistants . . . . 4 4 5 6 5 6 5 5 5 3 detailed analysis of the effect of employment size on estab lishment pay levels. To permit comparisons with the 1985 survey findings, the 1986 report includes separate data for medium and large firms.11 The 1986 data show that larger establishments (those with 2,500 workers or more) generally pay higher salaries to white-collar employees than do small firms (50 to 999 work ers), although the pay advantage varies by occupation and skill level.12 In roughly three-fourths of the clerical occupa tional work levels analyzed, average salary levels in large establishments were 10 to 20 percent above those in small establishments. Among professional, administrative, and technical occupations, the large establishment pay advan tage was generally less than 10 percent; differentials greater than 10 percent were usually in the lower levels of these occupations. Pay levels for workers in establishments with 1,000 to 2,499 workers generally fell between those of their counterparts in larger and smaller firms. 5 MONTHLY LABOR REVIEW March 1987 • Expansion o f p a t c Survey Expansion of survey scope also permitted study of addi tional occupations which, in terms of employment, are im portant in both the Federal Government and private indus tries. Additions to the 1986 survey included a general clerk occupation (with 4 work levels) and a new bottom level for the already surveyed purchasing clerk/assistant job. 1987 coverage As mentioned earlier, plans for a 1987 survey covering all services industries plus State and local governments were revised as a result of congressional action. The Congress directed that the b l s develop a broad-based national whitecollar salary and benefits survey “ . . .that meets not only the needs of the Federal pay agent but also provides general information about the levels of compensation of all seg ments of the white-collar workforce.”13 Furthermore, the b l s was requested to submit to the Congress, by August 1987, plans for implementing this new, broad-based whitecollar survey. As a result, the March 1987 p a t c survey will be con ducted in the private services industries only, but will cover all establishments with at least 20 workers. Additionally, a series of research and test studies will be conducted that address a wide range of issues and concerns pertinent to the development of a broad-based white-collar salary and bene fits survey. The 1987 p a t c survey will permit, for the first time, separate analysis of occupational pay and staffing patterns in all private services industries. Where possible, data by size of establishment and for all metropolitan areas combined will be published. Also, data for two key service sectors— business services and health services— will be published. The 1987 survey will add the following occupations: regis tered nurse (4 levels), licensed practical nurse (3 levels), nursing assistant (4 levels), and civil engineering technician (5 levels). There will be a dramatic increase in employment cover age stemming from p a t c survey expansions. Consequently, 1 The surveys have usually found larger pay differences between the various skill levels of the same occupation than across occupations at the same skill level. For example, in March 1986, average annual salaries in the following occupational work levels (all evaluated as equivalent to level 13 occupations in the Federal Government’s General Schedule) fell within a 9-percent range: Engineer vi ($58,883), Chemist vi ($60,796), Accoun tant vi ($ 6 1 ,5 4 6 ), Attorney iv ($63,933), and Chief Accountant in ($62,880). Meanwhile, pay averages within these occupations commonly differed by 15 to 25 percent between adjacent skill levels. 2 For analyses based on pa tc survey data, see Martin E. Personick and Carl B. Barsky, “White-collar pay levels linked to corporate work force size," Monthly Labor Review, May 1982, pp. 23-28; Martin E. Personick, “White-collar pay determination under range-of-rate systems,” Monthly Labor Review, December 1984, pp. 25-30; and Mark S. Sieling, “Staffing patterns prominent in female-male earnings gap,” Monthly Labor Review, June 1984, pp. 2 9 -3 3 . 6 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis data available to the Pay Agent will represent salaries in about 300,000 establishments (1986 plus 1987 survey cov erage) that employ a total of 47 million workers, compared with 43,000 establishments and 23 million workers in 1985 (of which 2 million workers were classified in p a t c survey occupations). At the time of the 1985 survey, 51 percent of the 23 million workers within the scope of the survey were employed in manufacturing industries and 49 percent in nonmanufacturing. After the 1987 survey expansion, the proportions will be 68 percent in nonmanufacturing and 32 percent in manufacturing, more closely paralleling the industrial composition of the U.S. private, nonfarm economy. Test studies. The 1987 test studies will be coordinated with portions of ongoing Bureau surveys, such as the Em ployee Benefits Survey in State and local governments and, in the private sector, Area Wage Surveys which provide occupational pay data on a locality basis. These studies will examine such issues as: (1) pay, benefits, and work arrange ments for white-collar jobs not currently surveyed; (2) test ing methods to identify work levels (for example, trainee, fully qualified, supervisory) within a broad spectrum of professional/managerial occupations; (3) handling classifi cation and pay practices (for example, commissions) for a wide variety of sales occupations; (4) determining whether employee characteristics, such as education and experience, can be readily identified in an establishment-based survey; and (5) evaluating which statistical methods and survey designs (for example, probability selection of occupations) are appropriate for the broad-based survey of occupational pay levels and structures. P l a n s f o r t h e p a t c s u r v e y are indefinite beyond 1987, as the new broad-based white-collar survey develops to take its place. The scope of the p a t c survey during the transition period will probably alternate between the 1986 and 1987 coverage; some adjustments will be made to the minimum requirements on establishment employments. □ 3 The provision for legislative veto of the alternative plan by a single House of the Congress is currently being litigated. For a more detailed description of the pay comparability process, including the role of the bls survey, see George L. Stelluto, “Federal pay comparability: facts to temper the debate,” Monthly Labor Review, June 1979, pp. 18-28. 4 The scope, occupational definitions, and data for the 1960-61 survey are presented in National Survey of Professional, Administrative, Techni cal, and Clerical Pay, Winter 1960-61, Bulletin 1310 (Bureau o f Labor Statistics, 1961). The initial p a t c survey, for the winter of 1959-60, was experimental and applied to establishments with 100 or more workers. Industrial coverage, however, was the same as in 1960-61. 5 All but one of the occupations surveyed in 1985— messenger— were divided into two or more work levels. Definitions of these work levels, as well as occupational descriptions, are developed by the Pay Agent, with technical assistance from b l s , to permit salary comparisons between the private and Federal sectors at narrowly defined levels of work. Each occu pational work level in the p a t c survey can be equated to a specific grade level in the Federal Government’s General Schedule pay system. 6 Although p a t c sample establishments are selected on a probability basis, survey occupations are picked judgmentally by the Pay Agent. The occupations appropriàtely span a broad range o f Federal white-collar occu pations and work levels; they are not chosen, however, to be a representa tive sample o f all these occupations. The b ls Employment Cost Index, also occupationally based, uses probability techniques to select jobs for a study o f pay and compensation trends outside the Federal Government. 7 See National Survey of Professional, Administrative, Technical, and Clerical Pay, March 1985, Bulletin 2243 (Bureau of Labor Statistics, 1985). 8 See Improvements Needed In the Survey of Non-Federal Salaries Used A i Basis for Adjusting Federal White-Collar Salaries, B-167266 (U.S. General Accounting O ffice, May 11, 1973). 9 See Report to The President of the President’s Panel on Federal Com pensation (December 1975); The President’s Reorganization Project, Per sonnel Management Project, Final Staff Report , Vol. I (December 1977); President’s Private Sector Survey on Cost Control, A Report to The Pres ident (January 1984); and Comparability of the Federal Statutory Pay https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Systems With Private Enterprise Pay Rates , Annual Report o f The Presi dent’s Pay Agent (Aug. 20, 1985). 10 Prior to the expansion, surveyed services industries were limited to engineering, architectural, and surveying services; commercially operated research, development, and testing laboratories; credit reporting and col lection agencies; computer and data processing services; management, consulting and public relations services; noncommercial educational, sci entific, and research organizations; and accounting, auditing, and book keeping services. These industries would be included in the all services portion of future surveys. 11 See National Survey of Professional, Administrative, Technical, and Clerical Pay, March 1986, Bulletin 2271 (Bureau of Labor Statistics, 1986). 12 The p a t c survey data relate to straight-time salaries, excluding pre mium pay for overtime and for work on weekends, holidays, and late shifts. Also excluded are performance bonuses and lump-sum payments o f the type negotiated in the auto and aerospace industries, as well as profitsharing payments, attendance bonuses, Christmas or year end bonuses, and other nonproduction bonuses. Pay increases— but not bonuses— under cost-of-living allowance clauses, and incentive payments are included. 13 See Departments of Labor, Health and Human Services, and Educa tion and Related Agencies Appropriation Bill, 1987, Report 99-711 (U.S. House of Representatives, 99th Cong. 2d S ess., July 27, 1986), p. 18. Setting wage rates One result of having an internal labor market is that occupational wage rates are not set by the free market as in the basic supply/demand model. In this case, a method has to be devised to set wage rates for the hierarchy of occupations employed. This method has to provide rates that are per ceived as fair and will motivate workers to acquire skills and work hard for promotions. One such method is “job evaluation” in which the various factors that people consider important in determining a fair wage structure are scored for each occupation and the relative wage rates are determined by each occupation’s total score. Among the factors considered are the level of skill required by the occupation, the level of responsibility, use of expensive equipment, and hazards or discomfort in working conditions. In this way, a wage rate structure is developed for all the occupations in the internal labor market. — Using Labor Market Information in Career Exploration and Decision Making: A Resource Guide (Garrett Park, m d , Garrett Park Press, 1986), p. 64. 7 The Consumer Expenditure Survey: quality control by comparative analysis As with any statistical program, assessment of results is an important part of the expenditure survey; a vital component of b l s postsurvey evaluation is comparison with other data on aggregate spending, most notably those from the National Accounts R a y m o n d G ie s e m a n Postsurvey evaluation is an integral part of a program of quality assurance for the ongoing Consumer Expenditure Survey ( c e ) . Comparisons with data from independent sources serve to monitor consistency of results from the survey and help identify areas where survey performance can be improved. This article highlights some of the find ings obtained by comparing aggregate consumer expendi tures from the c e with data from alternative sources. The expenditure survey described The Consumer Expenditure Survey provides a continuous and comprehensive flow of data on the expenditures, in come, and other selected characteristics of American con sumers. The survey, which is conducted by the Bureau of the Census for the Bureau of Labor Statistics, consists of two components: (1) A Diary, or recordkeeping, survey completed by participating consumer units1 for two consec utive 1-week periods; and (2) an Interview survey in which the expenditures of consumer units are obtained in five consecutive quarterly interviews. Raymond Gieseman is an economist in the Division of Consumer Expendi ture Surveys, Bureau o f Labor Statistics. This article is derived from a paper presented by the author at the annual meeting of the American Statistical Association, Aug. 18, 1986, in Chicago. 8 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Each component of the survey addresses an independent sample of consumer units which is representative of the U.S. population. Over 52 weeks of the year, 5,000 con sumer units are sampled for the Diary survey. Because each unit keeps a diary for two 1-week periods, approximately 10,000 diaries are obtained each year. The interview sample is selected on a rotating panel basis, targeted at 5,000 con sumer units each quarter. The data are collected on an ongo ing basis in 101 areas of the country. The Interview survey is designed to capture expenditures which respondents can recall for a period of 3 months or longer. In general, these include relatively large expendi tures, such as those for real property, automobiles, and major appliances, or expenditures which occur on a fairly regular basis, such as rent, utility payments, or insurance premiums. The Interview survey also provides data on ex penditures incurred while on overnight trips and vacations. Including “global estimates” of spending for food, about 95 percent of all expenditures are covered in the Interview phase. Excluded are nonprescription drugs, household sup plies, and personal care items. The Diary survey is designed to obtain detailed expendi tures on small, frequently purchased items which are nor mally difficult for respondents to recall. Records of ex penses are kept for food and beverages, both at home and in eating places, tobacco, housekeeping supplies, nonprescrip- tion drugs, and personal care products and services. This kind of detail is needed for the periodic rebasing of the Consumer Price Index. Expenditures incurred by members of the consumer unit while away from home overnight or longer are not collected in the Diary survey, c e estimates of food expenditures are particularly affected by this feature. Expenditure estimates from the c e are transaction costs, including excise and sales taxes, for goods and services acquired during the survey reference period. The full cost of each purchase is recorded, even though full payment may not have been made at the time of purchase. Businessrelated expenditures and reimbursed expenses are excluded. Even from this limited description, one can discern a number of possible sources of error in the expenditure sur vey. As in all sample surveys, the results are subject not only to sampling error, but also to many of the same limita tions that would apply to a complete census. The time and effort required to keep a diary of purchases, or to complete an interview, are quite likely to have an impact on the completeness with which expenditures are reported by re spondents. Aspects of the collection methodology, inter viewer quality, environmental conditioning, processing error, and other factors influence the findings. There can be overreporting or underreporting of the ex penditures. For example, in reporting food expenditures, participants in the Diary survey may record purchases from grocery stores, but overlook food items purchased from a convenience store. In the quarterly Interview survey, partic ipants might not recall some items of clothing purchased 2 or 3 months ago, or might report an incorrect transaction amount. The constraints on respondents’ time or the lack of participation in the survey by all consumer unit members might cause several purchases to be overlooked. As we shall see, available evidence suggests possible underreporting for many items in the expenditure survey; overreporting does not appear to be a problem. This article focuses on comparisons of c e data with other, related data, but some of the expenditure survey data themselves also point to sources of underreporting. For example, in the Interview survey, it has been found that expenditures for many items are reported more frequently for the month immediately preceding the interview than for earlier months.2 In the Diary survey, it has been found that average reported food expenditures tend to decline across days of participation.3 Overview of postsurvey evaluation The primary role of postsurvey evaluation is to access the cumulative effects of nonsampling errors on the quality of the data obtained from the survey. Comparisons with data from external sources are important in shedding light on the strengths and weaknesses of survey findings. Since the start of the ongoing Consumer Expenditure Survey in 1980, such comparisons have become a regular part of the c e program. What was expected from these comparisons was a sense of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis degree and direction of possible survey errors, rather than an exact measure of bias, because the specific estimates from other sources are not necessarily the “true” values. A principal source of independent data, but not the only source for this purpose, is estimates of expenditures for goods and services from the personal sector of the National Income and Product Accounts. In these accounts, estimates of expenditures are based largely on records of sales by business and government enterprises. While these data are not subject to the same errors inherent in household surveys, they are subject to their own measurement errors and to judgment errors in the estimation and allocation of sales to the personal sector and other sectors of the accounts. Such errors cannot be quantified easily. Personal Consumption Expenditures. The Personal Con sumption Expenditures ( p c e ) component of the National In come and Product Accounts ( n i p a ) , prepared by the Bureau of Economic Analysis of the U.S. Department of Com merce, provides estimates for many types of spending that can be compared with c e expenditure components. The series is derived by complex methods which trace the flow of goods and services through the economy.4 The procedure requires estimating total production, then allocating produc tion to intermediate users and to final demand. Cost and profit margins are estimated to arrive at final market values. Primary sources of the data are the Census of Manufactures, available once every 5 years, and other economic censuses. The estimates for a particular year are updated the follow ing year as more current source data are incorporated. They also are subject to periodic revision if additional sources of information become available. Finally, “benchmark esti mates” of consumer spending are derived every 5 years as the results of economic censuses become available. The latest benchmark estimates of consumer spending, released in December 1985, were based on findings from the 1977 economic censuses. One result of the most recent benchmarking was to increase the amount for food in “pur chased meals and beverages” in 1984 by 9.2 percent. The estimate of expenditures for kitchen and household appli ances for the same year was lowered 10.6 percent. The fact that substantial revisions to p c e take place as much as 5 years after publication reinforces the point that there is no “true” value for consumer expenditure estimates. Personal Consumption Expenditures represent the market value of goods and services purchased by the entire personal sector of the U.S. economy, including net purchases of used goods. Also included are operating expenses of nonprofit institutions serving individuals, and the value of food, fuel, clothing, rent of dwellings, and financial services received in kind by individuals. The p c e purchasing universe is slightly larger than that covered in the Consumer Expendi ture Survey. Included in p c e estimates are purchases by the military and the institutional population not accounted for elsewhere in the government sector of the National Ac9 MONTHLY LABOR REVIEW March 1987 • Quality Control in the Consumer Expenditure Survey counts, and purchases of goods and services provided by nonprofit organizations, p c e categories also include expend itures in the United States by foreigners. In an earlier work, H.S. Houthakker and Lester D. Taylor compared “private consumption expenditures” from the Na tional Accounts with aggregate spending by consumer units from the 1960-61 Survey of Consumer Expenditures, and pointed out some of the differences in the measurement and classification of expenditures that must be addressed when comparing data from the two sources.5 In an extensive com parison of c e expenditures with data from independent sources, Robert B. Pearl relied heavily upon the National Accounts to assess findings from the 1972-73 survey.6 Both of these studies provided evidence that, for several cate gories of goods and services, expenditures were underre ported in the Consumer Expenditure Survey. Unfortunately, a straightforward comparison between c e and p c e components of spending is not possible. For some components of expenditure, differences in concepts are so great as to render the comparison meaningless. For other spending components, there are differences in coverage that must be accounted for before a comparison can be made. A couple of examples illustrate this process. CE aggregate expenditures for health care cannot be com pared with medical care expenditures in p c e . The expendi ture survey in general is concerned with direct payments by households for goods or services. Therefore, costs for health care are out-of-pocket expenditures by households for in surance, medical commodities, professional services, and hospital care. Payments for insurance by employers or reim bursements by insurance companies are not included. The p c e on the other hand, is concerned with the total value of private health care, regardless of who is actually incurring the expenditure. c e and p c e expenditures for owned dwellings also are not comparable, c e expenditures for owned dwellings, as pub lished, are actual outlays reported by all homeowners for mortgage interest, property taxes, and insurance, mainte nance, and repairs, p c e published estimates are the space rental value of owned shelter.7 Other components not com pared because of intractable conceptual differences are edu cational expenses; contributions to religious, political, and charitable organizations; and all insurance. However, c e and p c e expenditures for rented shelter can be compared after adjustment. In the expenditure survey, rent is based on “contract rent,” which includes the implicit cost of utilities paid for by landlords, while p c e rent for tenant-occupied dwellings is space rent excluding any utili ties. By adding the two components for both series, an estimate for “rented shelter, fuel, and utilities” can be com pared. For the comparative analysis of c e and p c e estimates, almost every expenditure component requires some adjust ment.8 Other data sources. 10 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis It is possible to compare aggregate expenditure findings from the survey with national industry and trade statistics, where the transactions refer directly to consumer units. Several independent sources that provide data suitable for this purpose have been identified and are used to evaluate expenditure findings for some of the cate gories of goods and services included in the c e . Method o f analysis. Assessments of findings have been made for both the Interview and the Diary portions of the Consumer Expenditure Survey. Personal Consumption Ex penditure estimates were compared to Interview survey re sults for many categories of household spending, and to food expenditures from the Diary survey. Data on direct costs to consumers for medical care from the National Health Accounts, prepared by the U.S. Department of Health and Human Services, were matched against out-ofpocket medical care costs reported in the Interview Survey.9 Data on grocery store sales from trade publications also were examined relative to detailed food expenditure esti mates from the Diary survey. To compare the data, c e aggregate expenditure estimates were first developed, based on consumer unit counts and average expenditures per unit for specified groups of goods and services.10 These estimates were compared with esti mates of aggregate spending from independent sources for similar goods and services, and ratios were calculated. Throughout the discussion that follows, it should be kept in mind that because the various data series are used for differ ent purposes, there usually are significant differences in concept, coverage, and classification of expenditures. Interview survey versus pce Results of comparing c e Interview survey data with se lected components of p c e for the period 1980-84 are shown in table 1. Although c e aggregate expenditures were lower than those for p c e for all components of spending except personal care services, the relationship over the 5 years was consistent. The components of expenditure for which the two aggregate estimates were closest included rent, fuel and utilities, telephone service charges, furniture, and trans portation. These components typically either have regular periodic billing and payment or involve major outlays that may readily be recalled by respondents and substantiated with records. Except for furniture, Interview survey expenditures for household durables were low relative to p c e . Spending for household appliances was one-third to one-fourth lower than p c e estimates, and that for radio, t v , and musical instru ments was also about one-third lower. The inclusion of minor appliances, for which purchases may be more diffi cult to recall, could partially explain the lower relative c e findings for household appliances. Also, the allocation of major appliance production in the National Accounts be tween p c e and intermediate purchases by contractors and landlords is particularly uncertain. Among radio, t v , and improved survey methodology. Year-to-year changes in the ratios of c e aggregate expen ditures to Personal Consumption Expenditures provide use ful monitors of survey performance. For example, the ratios of c e to p c e for alcoholic beverages and housewares in the 1980-84 data are higher than they were for the 1972-73 data. More recently, components of spending for which the ratios increased over the 5-year period include household operations, telephone service, miscellaneous household equipment, and public transportation. Household opera tions, as defined for these comparisons, are limited to do mestic and other household services, excluding expendi tures for day care centers, babysitting, and care for invalid and elderly persons. In this area, there may be circularity between the two statistical programs because p c e uses ex penditure survey estimates to establish values for some do mestic services. A higher ratio of estimates for miscella neous household equipment beginning in 1983 may be attributed, at least in part, to the addition of Interview sur vey questions pertaining to home computers and telephone equipment. On the negative side, the ratio for food expenditures dropped 8 percentage points between 1981 and 1982, and that for food at home dropped even more, by 11 percentage points. The direction and magnitude of these changes were associated with the rewording of Interview survey questions musical instruments are a number of small items such as video cassettes and recorders, t v games, records, and tapes, Outlays for these products could have been forgotten by survey participants. Interview survey expenditures for private transportation were comparable with p c e estimates. However, c e expendi tures for public transportation were low, ranging between 56 percent and 63 percent of p c e figures. Public transportation expenditures include airline fares, local and interarea mass transit charges, and taxicab fares. These same components are especially difficult to estimate in p c e because expendi tures must be allocated between businesses and households. The results of the comparisons point to several areas where underreporting of expenditures appears to be a prob lem in the Interview survey. Among these are alcoholic beverages, some housefumishings and equipment, apparel, entertainment, reading materials, tobacco, and miscella neous expenditures. Spending on alcoholic beverages and tobacco traditionally has been underreported in household surveys. Houthakker and Taylor noted a large discrepancy when analyzing 1960-61 expenditures for alcoholic bever ages, which they said “ ...points to a substantial ‘Puritan’ element in the household data.”11 A similar element proba bly explains a tendency to underreport tobacco expend itures. However, a number of areas where underreporting exists in the Interview survey may be more responsive to Table 1. Estimated aggregate expenditures for selected categories of consumption from the to Personal Consumption Expenditures (pce), 1980-84 ce Interview survey aggregate expenditure (in billions) Expenditure category Interview survey compared Ratio of Interviewsurvey aggregate to PCE 1980 1981 1982 1983 1984 1980 1981 1982 1983 1984 Food ........................................................................................................... Food at hom e.......................................................................................... Food away from home ........................................................................... Alcoholic beverages................................................................................... Rent, fuel, and utilities1 ............................................................................. Telephone.................................................................................................. Household operations2 ............................................................................... $253.7 194.9 58.8 21.5 141.1 25.9 10.7 $266.2 202.2 64.0 22.3 162.5 29.3 10.7 $256.9 186.3 70.6 23.0 180.4 31.2 12.1 $274.1 194.9 79.3 24.0 193.2 35.5 13.2 $293.2 207.8 85.5 25.6 218.1 39.3 16.2 0.85 .91 .70 .47 .89 .93 .68 0.83 .87 .72 .46 .91 .94 .63 0.75 .76 .74 .46 .92 .88 .71 0.76 .76 .76 .46 .91 .94 .74 0.75 .75 .75 .48 .96 .99 .79 Housefumishings and equipment.............................................................. Household textiles ................................................................................. Furniture ................................................................................................ Floor coverings....................................................................................... Major and minor appliances .................................................................. Housewares............................................................................................ Miscellaneous household equipment..................................................... Apparel ...................................................................................................... 55.1 5.1 19.8 4.3 12.6 2.4 10.8 69.9 55.5 5.4 19.0 4.1 13.3 2.7 11.0 77.4 56.9 6.0 18.3 4.4 13.0 2.7 12.4 79.4 65.3 6.7 22.1 4.6 13.2 3.0 15.8 90.8 74.3 7.3 24.8 5.8 15.4 3.1 17.9 100.5 .68 .51 .95 .63 .77 .26 .60 .53 .64 .50 .86 .58 .76 .27 .56 .53 .64 .53 .85 .62 .73 .26 .61 .53 .67 .54 .93 .55 .67 .27 .72 .55 .69 .55 .93 .61 .71 .25 .75 .56 Transportation............................................................................................ Private transportation3 ........................................................................... Public transportation............................................................................... Entertainment ............................................................................................ Fees and admissions ............................................................................. Radio, TV, and sound equipment .......................................................... Other entertainment............................................................................... 222.0 207.5 14.6 58.0 17.9 16.3 23.9 232.9 215.8 17.0 65.9 20.3 19.2 26.3 235.8 219.6 16.2 68.6 20.8 22.5 25.3 274.3 256.8 17.5 77.2 24.8 24.6 27.8 300.1 278.2 21.9 86.1 28.3 28.0 29.7 .97 1.00 .70 .65 .65 .65 .64 .93 .94 .76 .65 .63 .68 .65 .92 .94 .71 .63 .60 .70 .60 .97 .99 .75 .64 .66 .66 .62 .95 .96 .84 .65 .71 .66 .59 Personal care services............................................................................... Reading....................................................................................................... Tobacco .................................................................................................... Miscellaneous4 .......................................................................................... 11.4 10.7 14.4 10.2 12.4 11.5 15.0 12.2 13.2 12.1 16.9 13.1 14.8 13.6 19.3 15.4 16.9 15.1 20.5 16.2 1.06 .67 .69 .42 1.09 .67 .66 .42 1.12 .67 .69 .39 1.06 .71 .69 .40 1.18 .73 .68 .38 1 1ncludes rent for tenant-occupied dwelling units, lodging away from home and at school, and utility costs of homeowners and renters. 2 ce amounts for babysitting, day care centers, care of invalid or elderly, and for household laundry and cleaning were deleted from comparison. 2 pce concept of dealer margin as the value of used vehicles was approximated in the ce. Excluded were amounts for vehicle insurance, finance charges, and license, registration, and https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis inspection fees. 4 Includes bank service charges and box rental, legal and accounting fees, and funeral and burial expenses. Note: ce survey aggregate expenditure for the total population for 1981 through 1983 are special constructions for this comparison, ce data were collected only for the urban population in those years. 11 MONTHLY LABOR REVIEW March 1987 • Quality Control in the Consumer Expenditure Survey allocated among the various food categories. The pce foodat-home aggregate is allocated among detailed components based in part on data from the U.S. Department of Agricul ture’s marketing bill for domestically produced farm food products, to which are added amounts for imported foods and for fish and seafood. Compared to pce estimates, Diary expenditures were particularly low for fish and seafood and for fruits and vegetables. However, they were higher than pce for miscellaneous prepared food and much higher for nonalcoholic beverages. To examine further the detailed food expenditures from the Diary survey, comparisons were made with data from studies conducted by trade publications, particularly the de tailed reports prepared annually by Supermarket Business14 and Progressive Grocer. 15 Supermarket Business conducts a comprehensive annual survey of food manufacturers, packers, wholesalers, and retailers to construct a detailed picture of grocery store sales by product line. Total grocery store sales for the study are based on U.S. Bureau of the Census estimates, and include sales of specialty food stores.16 Results of a similar study by Progressive Grocer, also available annually, but the uni verse, limited to stores with annual food sales of $2 million or more, accounts for only 75 to 80 percent of grocery store food sales. The sales estimates by product line from Super market Business and from Progressive Grocer were matched to Diary food components as closely as possible for the comparisons presented in table 3. Diary food expenditures more closely matched grocery store sales than did pce estimates, both in weekly totals and in distribution of expenditures among several food-at-home categories. Total food sales of grocery stores as described in the Supermarket Business “Consumer Expenditure Study” were very close to total food-at-home expenditures from the Diary survey. Diary aggregate expenditures were substan tially higher than the Supermarket Business sales estimates on shopping and purchase patterns at grocery stores, conve nience stores, and food specialty stores. (Detailed food ex penditures are not collected in the Interview survey.) Diary survey food expenditures The Diary survey is the primary source of detailed food expenditure estimates from the Consumer Expenditure Sur vey. For this analysis, the Diary estimates were compared with food expenditures from the National Accounts. Be cause the Dairy survey excludes expenditures while out of town overnight or longer, trip food expenditures from the Interview survey have been added to Diary food-awayfrom-home amounts for the comparison. Total food expenditures tabulated from the Diary survey (and supplemented with Interview data for food on trips) were about 75 percent of pce food expenditures. (See table 2.) Food-at-home expenditures in the Diary survey were low relative to pce, and declined from 69 percent of pce levels in 1980 to 63 percent in 1984. Diary survey and pce expenditures for food away from home (including food on trips) were very close over the comparison period. There appears to be substantial underreporting of food-athome expenditures in the Diary survey. However, at least one source has suggested that pce estimates for the same category are too high. Alexander C. Manchester and Richard A. King, who developed a new series of U.S. food expenditure estimates for the U.S. Department of Agricul ture in the late 1970’s, felt that census figures used as a basis for allocating food expenditures in pce were questionable.12 The Department of Agriculture estimates of food consump tion at home for the years 1980-84 are about 20 percent lower than pce estimates. The ce Diary survey figures are 82 percent of the Department of Agriculture estimates (exclud ing home production and donations).13 A comparison of ce and pce detailed food expenditures also reveals wide disparities in the way expenditures are Table 2. Estimates of aggregate expenditures for food-at-home categories, ce Diary survey compared to Food category pce, 1980-84 Ratio of Diary survey aggregate to PCE Diary survey aggregate expenditures (In billions) 1980 1981 1982 1983 1984 1980 1981 1982 1983 1984 Total food .................................................................................................. $222.74 $242.52 $263.90 $268.39 $280.93 0.75 0.76 0.77 0.74 0.72 Food at hom e.......................................................................................... Cereals and cereal products.............................................................. Bakery products ................................................................................. M eat.................................................................................................... Fish and seafood ............................................................................... Eggs..................................................................................................... Fresh milk and cream ......................................................................... 146.10 6.05 12.63 43.51 4.17 2.76 10.31 158.40 6.87 13.48 44.87 4.63 3.15 11.35 166.56 7.57 15.07 45.13 4.78 3.23 11.98 166.57 7.14 14.60 43.67 5.27 3.03 11.18 173.06 7.49 15.94 42.93 5.85 3.17 11.35 .69 .85 .74 .69 .48 .64 .70 .68 .87 .73 .66 .49 .69 .74 .68 .98 .74 .63 .50 .65 .70 .64 .93 .73 .57 .51 .59 .63 .63 .92 .76 .51 .52 .57 .61 Other dairy p roducts........................................................................... Fresh fruits and vegetables................................................................ Processed fruits and vegetables ........................................................ Sugar and other sweets .................................................................... Fats and o ils ........................................................................................ Nonalcoholic beverages .................................................................... Miscellaneous prepared foods........................................... ............. 9.21 12.46 9.04 5.57 4.25 13.42 12.72 10.12 14.77 10.03 5.72 4.73 13.93 14.75 11.13 15.88 10.65 5.81 4.74 14.23 16.36 11.15 15.82 10.68 6.16 4.50 14.90 16.93 11.26 16.56 11.48 6.61 4.95 15.92 19.55 .74 .47 .32 .64 .68 2.15 1.28 .78 .51 .33 .56 .66 1.92 1.27 .77 .52 .33 .55 .63 1.89 1.35 .75 .50 .32 .57 .58 1.92 1.36 .71 .48 .31 .59 .60 1.98 1.52 Food away from home1 ......................................................................... 76.64 84.12 97.34 103.36 107.87 .92 .94 1.02 .99 .95 1 1ncludes expenditures for food away from home on trips collected in the Interview survey. Note : See note, table 1. 12 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Table 3. Ratios of aggregate expenditures to store sales for food-at-home categories, Diary survey compared to alternative sources, 1980-84 Diary survey compared with Diary survey compared with P r o g r e s s iv e G r o c e r 1 S u p e r m a r k e t B u s in e s s Food category 1980 1981 1982 1983 1984 Total food at hom e.......................................................................................... 1.01 Cereals and cereal products .................................................................. Bakery products ...................................................................................... M eat......................................................................................................... Fish and seafood ................................................................................... Eggs......................................................................................................... Fresh milk and cream ............................................................................. 1.08 1.13 .98 1.07 2.53 1.85 0.96 1.03 0.99 1.10 1.12 .92 1.05 2.67 1.81 1.14 1.05 .99 1.05 2.82 1.93 .99 .95 .92 1.10 2.58 1.82 Other diary products............................................................................... Fresh fruits and vegetables.................................................................... Processed fruits and vegetables ............................................................ Sugar and other sweets ......................................................................... Fats and o ils ............................................................................................ Nonalcoholic beverages ........................................................................ Miscellaneous prepared fo o d s................................................................ 1.21 .60 1.05 .97 1.01 1.06 .99 1.16 .64 .99 1.04 1.03 1.09 1.02 1.41 .74 .96 1.02 .88 1.02 .96 1.37 .72 .93 1.04 .89 1.01 .93 1 Universe represented in stores with food sales of $2 million or more annually. Progressive Grocer assumed rights to data from Chain Store Age in 1982. See source note for further information. 1980 1981 1982 1983 1984 0.99 1.04 1.19 1.15 1.19 1.17 .98 .99 .89 1.17 2.08 1.83 1.25 1.07 1.16 1.54 .96 1.85 1.39 1.25 1.27 1.74 1.28 2.05 1.41 1.23 1.15 1.72 1.16 1.92 1.23 1.21 1.17 2.08 1.53 2.01 1.25 1.21 1.11 2.30 1.55 1,96 1.34 .85 .97 1.08 .86 1.05 .98 .95 1.02 .80 1.38 1.09 1.12 .64 .96 1.06 .94 1.53 1.34 1.28 .80 1.03 1.92 1.07 1.56 1.29 1.12 .80 1.25 1.02 1.12 1.74 1.21 1.18 .85 1.19 1.00 1.14 1.75 1.24 1.15 .89 Source : bls Consumer Expenditure Survey; Supermarket Business (September issue annually); Chain Store Age (July issue annually through 1982); and Progressive Grocer (July issue, 1983 and 1984). Note : See note, table 1. for eggs and for dairy products, but were lower for fresh fruits and vegetables. As expected, Diary expenditures for food at home were higher— by as much as 19 percent— than total food sales in the Progressive Grocer study. Expendi tures from the Diary survey for fish and seafood, fresh milk and cream, and sugar and other sweets were especially high relative to the Progressive Grocer sales estimates, but were low relative to sales for miscellaneous prepared foods. The very different results from the comparisons of ce food-at-home estimates with data from the three alternative sources illustrate the difficulties associated with assessing any biases. For example, while the fish and seafood cate gory produced one of the smallest comparison ratios be tween the ce and pce, it had a larger than average ratio for the Supermarket Business comparision and by far the largest ratio when data from Progressive Grocer were used. Con versely, miscellaneous prepared foods was one of two cate gories in which ce expenditures exceeded those for pce, but it was the only category for which ce expenditures were consistently lower than the Progressive Grocer estimates. Summary Interview survey expenditures for rent, fuel, and utilities, telephone service, furniture, transportation, and personal care services were comparable in level with Personal Con sumption Expenditure estimates. However, for all other ex penditure components studied, Interview survey estimates were lower. These findings were generally consistent over the 5 years for which the data were compared. Food expen ditures as reported in the Diary survey were low relative to pce , primarily due to lower food-at-home expenditures in the Diary survey. Substantial differences were also noted between the Diary survey and pce in the allocation of foodat-home expenditures by food type. However, expenditure https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis totals and allocations by food type reported in the Diary survey were much more consistent with sales by food line reported in food industry publications. Results obtained from these comparisons have been used to monitor the performance of the current Consumer Ex penditure Survey since it was begun in 1980. The compari sons have helped to establish food at home and apparel as two categories that require fuller investigation. Two methodological studies have been conducted to examine the processes that might lead to response error in the Diary survey. The first of these used data from a supplemental survey administered to Diary Survey respondents and inter viewers in the second quarter of 1984, at the conclusion of the second diary week. The supplement questionnaire was specifically designed to measure the attitudes and behaviors associated with keeping the diary.17 The other study, the Diary Operational Test, attempted to evaluate the influence which survey procedures have on response error. Field tests were conducted in 1985 to evalu ate the effects of different Diary Formats. One format pro vided more explicit instructions concerning the commodities to be reported, and the other was a preprinted, productspecific diary. The study also provided a basis for testing for differences between the results obtained from the current practice of having the Diary and quarterly Interview surveys conducted by the same interviewer and results obtained when interviewers work only on the Diary survey. The results of this experiment have not yet been analyzed, but the findings could suggest redesign possibilities that would lead to better reporting of food-at-home expenditures. For the Interview survey, plans are now underway to test the effect on the incidence of reporting of varying the length of the survey reference period, length of interview, style of survey instrument, and sequence or positioning of question naire parts. □ 13 MONTHLY LABOR REVIEW March 1987 • Quality Control in the Consumer Expenditure Survey --------- FOOTNOTES---------- 1 A consumer unit comprises either: (1) all members of a particular household who are related by blood, marriage, adoption, or other legal arrangements; (2) a person living alone or sharing a household with others or living as a roomer in a private home or lodging house or in permanent living quarters in a hotel or motel, but who is financially independent; or (3) two or more persons living together who pool their income to make joint expenditure decisions. Financial independence is determined by the three major expense categories: housing, food, and other living expenses. To be considered financially independent, the respondent must provide at least two o f the three major expense categories. 2 Adriana R. Silberstein and Curtis A. Jacobs, “Symptoms of Repeated Interview Effects in the Consumer Expenditure Interview Survey,” paper presented at the Symposium on Panel Surveys, American Statistical Asso ciation on Survey Research Methods, Nov. 19-22, 1986, Washington, DC. 3 U .S. Department o f Labor, Consumer Expenditure Survey: Diary Sur vey, 1980-81, Bulletin2173 (Bureau o f Labor Statistics, September 1983). 4 A detailed description of the derivation o f Personal Consumption Ex penditures, as well as the other components of the National Income and Product Accounts, is found in National Income: 1954 Edition, A Supple ment to the Survey of Current Business (Bureau of Economic Analysis, 1954). 5 H .S. Houthakker and Lester D. Taylor, Consumer Demand in the United States: Analysis and Projections , 2d. ed. (Cambridge, m a , Harvard University Press, 1971). 6 Robert B. Pearl, Réévaluation of the 1972-73 U.S. Consumer Expend iture Survey: A Further Examination Based on Revised Estimates of Per sonal Consumption Expenditures, (Bureau o f the Census, July 1979) (Technical Paper, 46). 7 The concept o f homeowner costs in the Consumer Price Index is also based on rental equivalence. See R. Gillingham and W. Lane, “Changing the treatment o f shelter costs for homeowners in the c p i ,” Monthly Labor Review, June 1982, pp. 9 -1 4 . Other CE components may also differ from c p i definitions. 14 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 8 Complete documentation of the adjustments made for this article is available from b l s . 9 Raphael Branch, “Comparing medical care expenditures of two diverse data sources,” Monthly Labor Review, March 1987, pp. 15-18. 10 The eligible population covered by the Consumer Expenditure Survey is the total civilian noninstitutional population of the United States. How ever, due to budget constraints in the fourth quarter o f 1981, rural portions of the survey coverage were temporarily discontinued until 1984, when full coverage was again restored. For the fourth quarter of 1981 through 1983, it was necessary to translate expenditure results for the urban population into aggregate expenditures for the total population to compare results with data from other sources. The adjustment was made by assuming the same relationships o f total to urban population and of total to urban mean expend itures as were found to prevail during the seven quarters of 1980-81, when the total population was covered in the survey. The rural population as defined for this exercise was about 17 percent of the total. 11 Houthakker and Taylor, Consumer Demand, p. 252. 12 Alden C. Manchester and Richard A. King, U.S. Food Expenditures, 1954-78, Agricultural Economic Report, 431 (U .S. Department of Agri culture, August 1979). 13 Food Consumption, Prices, and Expenditures, 1964-84, Statistical Bulletin, 736 (U .S. Department of Agriculture, December 1985), table 93b. 14 See, for example, Fieldmark Media, Inc., “38th Annual Consumer Expenditure Survey,” Supermarket Business, September 1985. 15 See, for example, Maclean Hunter Media, Inc., “ 1985 Supermarket Sales Manual,” Progressive Grocer, July 1985. 16 Includes meat, seafood, fruit, and vegetable markets, and confec tionery, bakery, diary, and other food stores. 17 See, for example, Clyde Tucker, “An Analysis of the Dynamics in the Journal of the American Statistical Association, 1986 Proceedings issue (forthcoming). CE Diary Survey,” Comparing medical care expenditures of two diverse U.S. data sources Consumer Expenditure Survey and administrative data from the Health Care Financing Administration show similar expenditures for medical commodities and services bls E. R aph ael B ranch Most families in the United States spend some of their disposable income for medical care. The amount depends on the medical commodities and services obtained and also on the financing of these expenses. This article looks at the cost of health care to consumers, exclusive of financing by other parties— referred to here as direct payments for personal health care or out-of-pocket expenditures for medical care. The share of family expenditures spent on medical care actually declined over the 1960-61 to 1982-83 period, de spite rising prices and greater utilization of physicians and ambulatory services. However, during the period, there was an expansion in the availability of health insurance and an equal or greater increase in employer-provided health bene fits. Also, Federal programs for health care provision and financing were introduced which affected medical care costs to households. The introduction of medicare and medicaid payments in 1966 and their expansion in 1972 and 1978 are examples of this kind of legislative initiative.1Such changes in the structure of health insurance coverage have affected the proportion of health care costs paid by consumers. Consumer spending for medical care rose rapidly between the 1960’s and the 1980’s. However, the consumer share of total personal health care costs, which include payments by third parties, declined. In 1960, these consumer costs ac counted for 55 percent of total personal health care costs; in E. Raphael Branch is an economist in the Office of Prices and Living Conditions, Bureau of Labor Statistics. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1984, they accounted for only 28 percent.2 Third parties are private health insurers, Federal, State, and local govern ments, and philanthropic organizations. The items covered by the costs include all health commodities and professional services. Data from the b l s Consumer Expenditure Survey show the effect of the structural changes in health care financing on the family budget. Medical care expenditures have been rising, but medical care has been accounting for a declining share of the total family budget. From 1960-61 to 1982-83, consumers’ annual average expenditures for medical care rose almost 200 percent, but the rise in other living expenses was somewhat greater. As a proportion of total family ex penditures, medical care expenditures declined from 6.1 percent to 4.6 percent. (See table 1.) Data sources As part of the evaluation process, the b l s compares Con sumer Expenditure Survey results with other relevant data. This article compares health care expenditures data from the Consumer Expenditure Survey ( c e ) with those from the National Health Accounts ( n h a ). The c e and the n h a are constructed for different purposes and, hence, use different estimation methods. The c e fo cuses on family spending and is the major source for out-ofpocket data by demographic groups. The n h a focuses on national aggregate expenditures for all health care by cate gories and sources of financing. The estimates from both 15 MONTHLY LABOR REVIEW March 1987 • Medical Care Expenditures From Two Diverse Sources Table 1. Average expenditures of all U.S. consumer units for medical care and percent change and distribution, Consumer Expenditure Survey, 1960-61 and 1982-83 Expenditure category Average expenditures 1960-61 1982-83 Percent change Percent distribution 1960-61 1982-83 $5,626 $18,944 236.7 100.0 100.0 Medical care, total ................. Medical care less insurance Medical insurance payments 340 251 89 874 641 233 157.1 155.4 161.8 6.1 4.5 1.6 4.6 3.4 1.2 All other expenditures............. 5,286 18,070 241.9 93.9 95.4 Total expenditures — sources are subject to sampling and estimation errors.3 Be cause of the differences in methodology between c e and n h a , we expect some differences in the resulting aggre gates. The purpose of this analysis is to look at the extent and direction of the differences. The b l s Consumer Expenditure Survey has been con ducted annually since 1980 and at approximately 10-year intervals before then. It provides data that allow analysis of the changes in out-of-pocket costs over time. The principal objective of the survey is to collect data which provide a continuous flow of information on the buying habits of different types of consumer units.4 The data are used in a wide variety of research by government, business, labor, and academic analysts, including the periodic revisions of the Consumer Price Index. The c e is conducted by the Bureau of the Census for the b l s . It consists of two components: a quarterly Interview survey in which the expenditures of consumer units are obtained in five interviews conducted every 3 months; and a Diary, or recordkeeping, survey, completed by participat ing consumer units for two consecutive 1-week periods. Both components query an independent sample of 5,000 consumer units per reference period in areas which are rep resentative of the total U.S. civilian population.5 The Inter view survey is a rotating panel survey designed to obtain data on the types of expenditures which respondents can recall for a period of 3 months or longer, including expendi tures made on overnight trips. In general, these include relatively large expenditures, such as those for real prop erty, automobiles, and major appliances, or expenditures which occur on a fairly regular basis, such as for rent, utilities, or medical care. The Diary survey is designed to obtain expenditures on small, frequently purchased items which are normally difficult for respondents to remember. It excludes expenditures incurred by members of the consumer unit while away from home overnight or longer. Medical care expenditures and reimbursed amounts6 are collected in the Interview survey. Out-of-pocket expendi tures are computed by subtracting reimbursements by third parties from the total payments for an expenditure by the household.7 Purchases of over-the-counter drugs, medical supplies, and miscellaneous items are collected in the Diary survey. 16 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The National Health Accounts measure total aggregate health costs of the Nation. The n h a covers the Social Secu rity population which includes inhabitants of U.S. territo ries, military personnel, and U.S. citizens outside the United States— populations not covered in the c e . They are developed by the Health Care Financing Administration, U.S. Department of Health and Human Services, to be consistent in concept with the gross national product ( g n p ) . Total personal health care costs are measured primarily from administrative data. The sources of data include Personal Consumption Expenditures ( p c e ) from the National Income and Product Accounts of the Bureau of Economic Analysis, U.S. Department of Commerce, a sample of business re ceipts from the Statistics o f Income published by the Internal Revenue Service, and data from the Annual Survey of Hos pitals and the monthly National Hospital Panel Survey, both from the American Hospital Association. Patient payments are calculated as the residual of total health care costs less estimated total third-party payments, and conform, in con cept, to the c e out-of-pocket costs. Comparing the data Expenditures for selected medical care categories8 from the two series are compared for the 1980-84 period. Be cause of lower population coverage in the c e , we expect its reported expenditures to be somewhat less than those of the n h a . However, we expect similarity in the direction of an nual changes and in the proportion of money spent on health categories, c e medical care expenditure levels are generally below those of n h a , but the aggregate c e /n h a ratios for the selected items are fairly constant. Also, there is a similarity in the proportion of amounts spent for commodities and services. Over the 5-year period, the c e / n h a relationship has been relatively constant for aggregate selected medical expendi tures, improving for medical commodities, but declining for medical services. (See table 2.) However, a decline is noted for commodities in 1984 and this, along with the decline in services, results in some overall decline in the relationship between the sources in that year. However, it is difficult to judge the significance of such changes. Any conclusions as to trends will have to be based on data for longer periods. Annual percent changes reflect differences in the levels of aggregate expenditures from the two sources. (See table 3.) However, while the changes differ more for component estimates, the difference in annual movement is similar over most of the period for the selected medical care total. Between 1983 and 1984, expenditures for health rose 5 percent in the c e , and 10 percent in the n h a . Although the 1984 c e results are preliminary, a slowing of the increases is consistent with the drop in inpatient hospital care. It is also consistent with the rapid growth in the use of less costly medical service alternatives such as health maintenance or ganizations ( h m o ’ s ) and ambulatory services.9 Because of the volatility in the economics of the health industry, there Table 2. Aggregate and per capita expenditures of all U.S. consumer units for medical care from Consumer Expenditure Survey and National Health Accounts and ce/nha ratios, 1980-84 _________________________ __________________ 1980 1981 1982 1983 CE/NHAratios2 National Health Accounts1 Consumer Expenditure Survey Expenditure category 1984 1980 1981 1982 1983 1984 1980 1981 1982 1983 1984 Aggregate expenditures (billions) Selected medical care, total3 ................................................................ Medical commodities ......................................................................... Drugs and medical supplies............................................................ Medical equipment and supplies ................................................... $44.5 12.9 10.6 2.3 $48.1 15.2 12.7 2.5 $51.9 16.2 13.7 2.6 $56.9 18.2 15.2 3.0 $59.9 19.3 16.1 3.2 $52.2 19.0 14.8 4.2 $58.0 20.7 16.2 4.5 $62.2 21.1 16.9 4.2 $68.0 23.0 18.2 4.8 $75.1 25.2 19.7 5.5 .85 .68 .71 .56 .83 .73 .78 .56 .83 .77 .81 .61 .84 .79 .84 .62 .80 .77 .82 .59 Medical services................................................................................. Professional services....................................................................... Hospital care4 ................................................................................. 31.6 26.9 4.7 32.9 27.4 5.5 35.6 28.8 6.8 38.7 32.3 6.4 40.6 34.0 6.6 33.2 27.2 6.0 37.3 30.3 7.0 41.1 33.4 7.7 45.0 36.4 8.6 49.9 40.8 9.1 .95 .99 .78 .88 .91 .79 .87 .86 .89 .86 .89 .74 .81 .83 .73 Per capiti expemJitures Selected medical care, total3 ................................................................ Medical commodities ......................................................................... Drugs and medical supplies............................................................ Medical equipment and supplies ................................................... $199 58 48 10 $215 67 56 11 $226 70 59 11 $242 77 64 13 $253 82 68 14 $221 81 63 18 $243 87 68 19 $258 87 70 17 $280 95 75 20 $305 102 80 22 .90 .72 .76 .59 .88 .78 .83 .59 .88 .80 .84 .65 .87 .82 .86 .65 .83 .79 .85 .61 Professional services....................................................................... Hospital care4 ................................................................................. 141 120 21 148 123 25 156 126 30 165 138 27 171 143 28 140 115 25 156 127 29 171 139 32 185 150 35 203 166 37 1.00 1.04 .82 .94 .96 .84 .92 .91 .93 .89 .92 .77 .84 .86 .75 1 Data are from the Health Care Financing Administration, U.S. Department of Health and Human Services. 2 Ratios are based on unrounded data. are factors leading to higher costs which may be balanced by others tending to lower costs. It will take several years to evaluate the impact of these changes. The proportion of expenditures for medical categories has been fairly constant since 1980. (See table 4.) c e data show slightly more being spent on medical services, compared with n h a data, and slightly less on commodities. The esti mates for 1984 are typical of the proportions spent over the 5-year period. In 1984, c e reported $60 billion in out-ofpocket medical expenditures. Of this amount, 32 percent was spent on medical commodities and 68 percent on serv ices. n h a data show similar percentages spent for medical commodities and services, but the out-of-pocket medical expenditures were higher, $75 billion in 1984. Per capita spending. The population coverage of the CE and n h a differs and affects the level of the estimates. The effect is removed when the data are compared on a per capita basis. (See table 2.) Although the pattern of differ ences is essentially the same as when measured with aggre gates, these ratios, adjusted for population coverage, show that the estimates from the two sources are fairly close for the selected items total. The c e medical services estimates were approximately the same as those from the n h a in 1980, and have declined somewhat since. Data limitations In addition to the basic difference in the sources (house hold survey versus a combination of survey data and admin istrative records), there are conceptual differences between c e and n h a that cannot be completely reconciled. However, adjustments can and have been made to make the compari son feasible. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3 Excludes nursing home care, medical equipment repairs, and health insurance. 4 Excludes nonpatient revenues of community hospitals. The 1980 estimates are derived from both f980 ar|d 1981 data. Differences in the estimates are partly the result of differ ences in estimation methods. The c e is a household inter view survey designed to provide comprehensive information about household expenditures and data for weighting the Consumer Price Index. Survey interviewers ask consumer units about expenditures for detailed medical care items. The responses are edited, tabulated, weighted by population estimates, and summed over consumer units, by item.10 In comparison, the n h a measures total health costs using administrative data adjusted for differences in concept, cov erage, timing, and nonresponse. For example, its estimates for medical commodities are based on the p c e . T o obtain patient payments for drugs and sundries, p c e estimates are adjusted by subtracting workers’ compensation, medicare, and temporary disability program payments.11 In addition, p c e estimates are subject to annual revision, and 5-year benchmark revisions are also made. Internal Revenue Serv ice business income estimates, one of the sources on which Table 3. Annual percent change in medical care expenditures in the Consumer Expenditure Survey and National Health Accounts, 1981-84 Expenditure category National Health Accounts1 Consumer Expenditure Survey 1981 1982 1983 1984 1981 1982 1983 1984 10.4 Selected medical care, total2 . 8.1 7.8 9.7 5.3 11.1 7.2 9.3 Medical commodities ......... 17.5 6.9 12.2 6.0 9.0 1.9 9.0 9.6 Medical services................. 4.3 8.2 8.5 5.0 12.4 10.2 9.5 10.9 1 Excludes nonpatient revenues of community hospitals. Data are from the Health Care Fi nancing Administration, U.S. Department of Health and Human Services. 2 Excludes nursing home care, medical equipment repairs, and health insurance. Note: Percent changes are derived from unrounded data. 17 MONTHLY LABOR REVIEW March 1987 • Medical Care Expenditures From Two Diverse Sources Table 4. Percent distribution of annual aggregate expenditures for medical care from Consumer Expenditure Survey and National Health Accounts, 1980-84 Consumer Expenditure Survey Expenditure category Selected medical care, total2 .................................................................... National Health Accounts1 1980 1981 1982 1983 1984 1980 1981 1982 1983 1984 100 100 100 100 100 100 100 100 100 100 Medical commodities ............................................................................. Drugs and medical supplies......................................................................... Medical equipment and supplies ................................................................ 29 24 5 31 26 5 31 26 5 32 27 5 32 27 5 36 28 8 36 28 8 34 27 7 34 27 7 33 26 7 Medical services............................................................................... Professional services............................................................................... Hospital care3 .......................................................................................... 71 61 10 69 57 12 69 56 13 68 57 11 68 57 11 64 52 12 64 52 12 66 54 12 66 53 13 66 54 12 1 Data are from the Health Care Financing Administration, U.S. Department of Health and Human Services. 3 Excludes nonpatient revenues of community hospitals. The 1980 estimates are derived from both 1980 and 1981 data. 2 Excludes nursing home care, medical equipment repairs, and health insurance. professional service estimates are based, are adjusted to include direct payments by consumers to health care deliver ers which are not covered in the Internal Revenue Service data. Also, annual hospital survey data are adjusted by monthly survey data to estimate calendar-year amounts.12 Not only are the estimation methodologies of ce and nha different, but as part of the procedures, the items are classi fied differently. In general, for this study, classification differences are reconciled (although not completely) by nha grouping subcategories in egories in NHA. ce to match more aggregated cat T his review shows general consistency and similarity be tween the ce and nha data, giving us confidence in the ce estimates. As data from the continuing Consumer Expendi ture Survey becomes available, we will evaluate the results; however, emphasis will be on analyzing expenditures by characteristics. □ -FOOTNOTES 1 Medicare and medicaid are Federal health insurance programs. Medi care, initially established in 1966 for the aged, was expanded in 1973 to include disabled beneficiaries under the Social Security and railroad retire ment programs. It was again expanded in 1978 to include persons under 65 years o f age who require dialysis or a kidney transplant for end-stage renal disease. Medicaid was established in 1966 to provide health insurance for certain low-income families. 2 Katherine R. Levit, Helen Lazenby, Daniel R. Waldo, and Lawrence M. Davidoff, “National Health Expenditures, 1984,” Health Care Financ ing Review, Fall 1985, p. 16. 3 The Consumer Expenditure Survey, a sample survey, is subject to two types o f errors. Sampling errors occur because the data are collected from a sample rather than the entire population. Nonsampling errors result from an inability or unwillingness o f the respondents to provide correct informa tion, differences in interviewer ability, mistakes in recording or coding, or other processing errors. Standard error tables are available from the Bureau o f Labor Statistics, n h a estimates are subject to estimation, and sampling errors. While there are no statistical measures o f error for the residual estimates, there is estimation error, and a residual is subject to error from both component estimates from which it is derived. For further discussion o f NHA concepts and estimation, see Levit and others, “National Health,” pp. 2 7 -3 0 . The n h a estimates are also subject to revision as new estimates become available from the source data and new methodologies are em ployed. 4 A consumer unit consists o f all members of a particular housing unit or other type o f living quarters who are related by blood, marriage, or adop tion, or some other legal arrangement, such as foster children. Consumer unit determination for unrelated persons is based on financial independ ence. 18 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5 The Consumer Expenditure Survey population includes the civilian noninstitutional population of the United States, as well as that portion of the institutional population living in the following group quarters: boarding house facilities for students and workers; staff units in hospitals and homes for the aged, infirmed, or needy; permanent living quarters in hotels and motels; and mobile home parks. Armed Forces personnel living outside military installations were included in the coverage while Armed Forces personnel living on post were excluded. Rural data are not available in the c e survey from 1981 through 1983 because the rural sample was discontin ued during that period. 6 Reimbursements are credited when received and do not necessarily refer to the period of the expenditure. However, on an annual basis, this time discrepancy is not considered to have much effect. 7 Annual aggregate expenditures for ce medical care were derived for the total population. For years in which rural data were not collected, urban expenditures were adjusted by ratios of total U .S. and urban U .S. aggre gates from the most recent period available. 8 Health insurance is excluded from the comparisons because the out-ofpocket payments are not available from the National Health Accounts. Nursing home care is also excluded from the comparisons because the coverage in the two sources is not comparable. 9 For further details, see Levit and others, “National Health,” p. 4. 10 “Consumer Expenditures and Income,” bls Handbook of Methods, Bulletin 2134-1 (Bureau of Labor Statistics, 1982). 11 Levit and others, “National Health,” p. 30. 12 Levit and others, “National Health,” p. 27. Early retirement as a labor force policy: an international overview In recent years , governments and firms have increasingly turned to early-out schemes to soak up excess labor supply; the projected aging of western populations threatens the viability of such schemes, which have the unfortunate side effect of masking macroeconomic failings B arry A lan M irkin In grappling with the problems posed by high and persistent unemployment which continue to plague the countries of Western Europe and North America, an array of labor mar ket policies have been implemented to lower or at least contain the ranks of the unemployed. Such policies aim at influencing the supply of or the demand for labor.1 Stimulating demand traditionally has been the main pol icy tool against joblessness. In recent years, however, there has been a noticeable trend away from demand expansion out of fear of rekindling the inflationary spiral. Instead, there has been a growing reliance on supply-oriented meas ures, such as restrictions on labor migration from abroad, repatriation of foreign guest workers, reduction of hours of work, work sharing arrangements, and increases in the legal working age and the number of years of mandatory school ing. The most frequently employed among such methods, however, have been policies to induce early retirement through various social security schemes. These early retirement programs, many of which were initially formulated to achieve broad social goals rather Barry Alan Mirkin is an economic affairs officer with the United Nations Economic Commission for Europe, Geneva, Switzerland. This article is an earlier and somewhat expanded version o f a study published in Economic Commission for Europe, Economic Survey of Europe in 1985-1986 (New York, United Nations, 1986), pp. 9 6-109. The views expressed herein are those o f the author and do not necessarily reflect those of the United Nations. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis than labor market equilibrium, have taken several forms: (1) prerecession schemes, originally introduced within the framework of social policies to benefit older workers, which have been expanded or more aggressively pursued;2 (2) other types of schemes, such as disability programs, into which economic and additional health criteria have been introduced;3 and (3) specific recession-oriented measures to promote premature retirement which were established in response to chronic high rates of unemployment of the 1970’s and early 1980’s. In practice, however, it is often difficult to distinguish among these three categories. Only incipient in the early 1970’s, the trend toward broadening eligibility for retirement and disability programs as a means of alleviating unemployment gained momentum as unemployment remained resistent to other labor market policies. This gradual blurring of the boundaries between the retirement, disability compensation, and employment objectives of the measures has contributed to enormous strains on public and private pension systems, while the extent to which the schemes have alleviated unemployment remains controversial. Whereas public policy in the United States has been mod ified in recent years to encourage the postponement of retire ment, in Europe, early retirement schemes have tended to be more pervasive. Several factors help to explain these differ ing approaches to influencing labor market developments. 19 MONTHLY LABOR REVIEW March 1987 • International Overview o f Early Retirement First, the governments of Western Europe have been under considerably more pressure than that of the United States to implement early retirement plans to alleviate high unem ployment. This is a consequence of the stagnation in em ployment expansion in Western Europe as compared to the substantial employment generation that has taken place in the United States. One reflection of this divergence in the pattern of job creation is the unemployment rate. In 1985, the average annual unemployment rate for 13 countries of Western Europe was approximately 9.7 percent. This con trasts sharply with an unemployment rate of 7.0 percent experienced by the United States the same year.4 A second factor can be attributed to differences in the pace of aging. Normally defined as the population age 60 and over, the aged in Western Europe made up 14.3 percent of the total population in 1950 and 19.2 percent in 1985, while in the United States, the aged represented 12.1 percent and 16.3 percent of the population, respectively. This difference in the extent of aging is expected to continue into the near future. By the year 2000, the aged are projected to be 21.1 percent of the population in Western Europe and 16.0 per cent in the United States.5 This article presents a brief discussion of early retirement programs in general, followed by an inventory of specific measures implemented on a country-by-country basis. The impact of the schemes on the labor force participation of older workers is then examined. Selected schemes are ana lyzed in greater detail and provide the basis for conclusions concerning their use in curbing unemployment. The nature of early-out schemes Early retirement strategies are widely used to cope with problems such as those posed by labor market rigidities, the introduction of new technologies, restructuring activities resulting in redundancies and overmanning, and job search difficulties among certain population groups. These schemes can be categorized by target group— that is, em ployed workers, unemployed workers, or disabled workers. Early retirement for employed workers is often, though not always, pursued for the purpose of providing greater employment opportunities for young people, a group that has suffered from especially high rates of unemployment. Such schemes may encourage older workers nearing retire ment age to cease labor market activity prematurely. An example is the Job Release Scheme, introduced in the United Kingdom in 1977, which made the retiree’s receipt of a pension conditional on the hiring by his or her employer of an unemployed person, although not necessarily to fill the same position. In Denmark, the implementation in 1979 of a national program permitting early retirement attracted far more workers the first year than expected. The plan, how ever, does not stipulate that another person be recruited to fill the vacancy left by the retiree. Early retirement for unemployed workers normally re quires that a worker be registered as unemployed for a 20 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis specified period before becoming eligible for a pension. For example, in France, the Guarantee of Resources Agreement between the employers’ federation and the labor unions provided a pension of approximately 70 percent of preretire ment pay to redundant workers at age 60 if they agreed not to take other employment. Introduced in 1972, this plan was discontinued in 1984 when the normal retirement age was lowered from 65 to 60 years of age. Disability pensions have been a standard feature of social security schemes in Western industrialized nations for sev eral decades. Awarded to workers who have a physical or psychological disability which either precludes gainful em ployment or only allows employment at a reduced level, the payments were not explicitly designed to induce early retire ment. Recently, however, they have taken on growing prominence as a means for early retirement as definitions of disability have become increasingly broad. Exhibit 1 provides a summary of many of the schemes that have been devised to encourage the premature cessation of labor market activities. It indicates the diversity as well as the extent to which such plans have become firmly rooted in labor market policy. While disability pensions are not early retirement schemes per se, they have been included in the discussion because they have been manipulated to re duce labor supply and unemployment in a number of coun tries. Generally, early retirement pensions tend to be limited to groups of workers who meet specified qualifying condi tions, such as full or partial disability, unemployment, long service, or employment in arduous or hazardous occupa tions. In addition, in several countries, those who meet minimum qualifying conditions and who are willing to ac cept an actuarially reduced benefit can elect early retire ment. Among the myriad types of schemes are those permitting partial or gradual retirement in France, the Federal Republic of Germany, Italy, Sweden, and the United Kingdom and a host of private plans, found in the United Kingdom and the United States. The schemes can operate at the national, industry, occupation, or firm level. The trend generally has been to add new early retirement options to encompass more workers. More recently, schemes based on agreements signed between the government and unions (France, the Federal Republic of Germany, and Italy), between indus tries and unions (France and the United States), as well as company-specific plans (the United States) have become more widespread. As exhibit 2 indicates, the availability of early retirement options is greatest in Austria, Belgium, France, the Federal Republic of Germany, Italy, and Swe den. At the other end of the spectrum are Canada, Norway,6 and Switzerland, where only disability pensions exist. As a consequence of the long-term trend in improving the conditions of workers and the implementation of broad so cioeconomic goals, legislative modifications of pension schemes have generally expanded the population covered, increased benefits, lowered the entitlement age, and relaxed Exhibit 1. Inventory of early retirement and disability schemes in Europe and North America, 1961-85 Country Retirement age M-male F-female Normal Austria Belgium https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 65 M 60 F 65 M 60 F Program Conditions for eligibility Amount of pension Early 55 M 50 F Early retirement for the unemployed (began 1961) 180 months of insurance (24 in previous 3 years) and unemployed 1 year for economic or structural reasons 30 percent o f earnings in last 5 years 60 M 55 F Special retirement benefit (began 1961) In certain sectors after 35 years of service; also for those engaged in physically demanding work (57 M, 52 F) 67 percent of earnings during previous year Disability Loss of 50 percent of normal earnings capacity 67 percent o f earnings during previous year or percent of full pension corresponding to per centage loss o f earnings capacity 55 Contractual early re tirement for redun dant older workers (began 1974) Workers in private sector or temporary workers in public sector unemployed for at least 1 year; in certain cases, early retirement age is below 55 Unemployment benefit supplemented by al lowance of 1,000 francs per mont’i until normal retirement age 60 M 55 F Replacement of work ers taking early retire ment (1976-83) Employer must replace the worker by a person under age 30 who must work for at least 1 year Unemployment benefit supplemented by early retirement pension equal to one-half o f the differ ence between the refer ence wage and the un employment benefit 60 M 55 F Special early retire ment benefit (1978— 82) Unemployed for at least 1 year Person can choose be tween unemployment benefit plus 1,000 francs/month or old-age pension based on previ ous salary 64 M Pension for longservice or arduous oc cupations (began 1976) Employed for 45 years with at least 185 days in each year or employed in arduous occupa tions for 5 o f previous 15 years Full pension Early retirement for border commuters Frontier workers unemployed for at least 2 years Unemployment benefit supplemented by al lowance of 10 percent of previous net salary 60 M 55 F Early retirement (began 1983 to re place second Belgian scheme above) Retiree must be replaced by another worker Pension entitled to at normal retirement age 55 Exceptions for the unemployed over age 55 (Royal decree of December 29, 1984) Person must have been unemployed for 624 days during the previous 4 years Unemployment benefit Disability Loss of two-thirds of earnings capacity If totally disabled, 100 percent of earnings; if partially disabled, per centage of full pension corresponding to degree of incapacity 21 MONTHLY LABOR REVIEW March 1987 • International Overview o f Early Retirement Exhibit 1. Continued—Inventory of early retirement and disability schemes in Europe and North America, 1961-85 Retirement age M-male F-femaie Country Conditions for eligibility Amount of pension Prolonged incapacity for substantial gainful ac tivity If totally disabled, 75 percent to 90 percent of earnings depending on Province; if partially dis abled, proportion of full pension corresponding to impairment Member of an unemployment insurance fund for at least 10 o f the last 15 years or, in case of unemployment, satisfy conditions for daily cash benefits; part-time workers also eligible For full-time workers, 70.000 kroner for first l \ years, 56,000 kroner for next 2 years, and 42.000 kroner until nor mal retirement age Earnings capacity that is permanently reduced by at least 50 percent; for those aged 50 to 66, ill health or social circumstances Old-age pension Disability Earnings capacity that is permanently reduced by at least two-thirds 75 percent of average earnings if totally dis abled; if 50-percent to 99-percent disabled, per centage of full pension proportionate to loss of earnings capacity 60 Unemployment Pen sion (began 1961) Person who has received unemployment bene fits or assistance for 200 days in previous 60 weeks and for whom authorities cannot find work; retirement age was temporarily reduced to 55 in 1983, increasing annually thereafter to 60 in 1988 Up to 80 percent of earnings 63 Pension Support (1979-80) Retiree is replaced by unemployed person under age 25 55 Special early retire ment Under certain circumstances, veterans or farm ers who sell or transfer ownership of their farms Disability Unable to work because o f permanent physical or mental disability Up to 80 percent of earnings; if working ability reduced to 40 percent to 60 percent, one-half of full disability pension Special Contracts of the National Employ ment Fund (began 1962) Workers made redundant for economic reasons 80 percent to 90 percent of previous salary Normal Canada 65 Denmark 67 Early Disability 60 18 Finland France 65 65 (until 1983) 60 (from 1984) 22 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Program 60 2 Social Pensions Act of 1984:1 Voluntary early retirement (began 1979) Early retirement (began 1977) 60 Income guarantee -for redundant workers (1972-83) -for workers re signing (1977-83) 60 Early retirement 70 percent o f salary in the previous 6 months Hazardous working conditions, manual work ers, mothers with 3 or more children, prisoners of war, veterans Exhibit 1. Continued—Inventory of early retirement and disability schemes in Europe and North America, 1961- 85 Country Retirement age M-male F-female Normal France— continued Federal Republic o f Germany https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 63-65 Program Conditions for eligibility Amount of pension 55 Agreement for Social Protection in the Steel Industry (1977, 1979) Workers in the steel industry which was in the process of restructuring 70 percent of previous gross salary; government contributes to costs, as does the eec in some cases 56 Contracts of the Na tional Employment Fund (began 1980) Workers made redundant for economic reasons 65 percent of net salary 55 Solidarity Contracts (1982-88) Youth or unemployed worker must be hired for 2 years; also possibility of partial retirement whereby worker receives one-half of previous salary 65 percent of salary 55 (50 in certain cases) General Agreement for the Protection of Workers in the Steel Industry undergoing restructuring (began 1984) Workers whose jobs have been abolished 75 percent of former gross monthly salary and 20 percent of a year’s wage until retirement age Disability Disability of 50 percent 100 percent o f earnings 60 Early retirement (be gan 1957) Women with at least 15 years of contributions Full pension 60 Early retirement for unemployment 15 years of contributions and unemployed for at least 52 weeks within the previous 18 months Full pension 63 Early retirement for long service (began 1973) 35 years of contributions Full pension 59 Social Plan (began 1979) by some major steel producers such as Thyssen C o.3 None Unemployment compen sation plus a supplement from the company until age 60, then normal early retirement benefits Automobile Industry (Opel, Daimler-Benz, Volkswagen) Varies according to company Varies according to company Early Program for individ ual sectors: 60 Metal industry (began 1981) None 90 percent of previous net salary 58 Chemical indus try (began 1982) None 75 percent of previous net salary 58 Collective agreements (1984-88) Vacancy must be filled by person outside the firm and no company required to grant pension to more than 5 percent of employees; condi tions among agreements differ; partial early re tirement also possible At least 65 percent of previous salary; under certain conditions, gov ernment pays 35 percent of pension Disability Totally unable to work or earn sufficient salary; person must have worked for at least 3 years in previous 5-year period; partial disabil ity available if ability to earn in relation to healthy person with same qualifications is re duced by one-half because of medical reasons Full pension; if partial disability, two-thirds of full pension or if earn ings loss of 20 percent to 49 percent, pension corresponds to this loss 23 MONTHLY LABOR REVIEW March 1987 • International Overview o f Early Retirement Exhibit 1. Continued—Inventory of early retirement and disability schemes in Europe and North America, 1961-85 Retirement age M-male F-female Country Normal Greece Italy 65 M 60 F 60 M 55 F 65 Conditions for eligibility Amount of pension Early Early retirement Arduous work or 10,000 days of insured work Full pension Early retirement (began 1979) Unemployed due to economic crisis or indus trial reorganization and member o f pension scheme for at least 15 years Not available Early retirement 35 years o f contribution Not available Solidarity contracts (began 1984) Company has not dismissed any workers in the previous year and signs a collective agreement to increase employment accordingly; worker re duces working time by 50 percent Normal pension Disability (began 1965) Total inability to work If totally disabled, 100 percent of earnings in previous year; if 61percent to 79-percent disabled, pension pro portionate to percentage of incapacity; if 11percent to 60-percent disabled, pension is 50 percent to 60 percent of percentage of incapacity 60 Unemployment Bene fits Act (wwv) Workers unemployed for preceding 2^ years Unemployment benefit 62 Early retirement, col lective agreements in specific sectors4 ( v u t , began 1977) 10 years of employment 80 percent to 85 percent of final salary Disability Security Act ( w a o , began 1967) Employees with a disability of at least 15 per cent and unemployed for at least 1 year Between 50 percent and 90 percent of previous salary, depending on de gree of disability General Disability Act ( a a w , began 1976) Employees and non-employees with an income of at least 4,447 guilders in year preceding dis ability Can not exceed net statutory wage 60 55 or 62 57 M F M F 55 M 50 F 58 M 53 W Netherlands Program Norway 67 18 Disability (began 1971) Working capacity reduced by at least 50 per cent due to physical or mental impairment; ac count is also taken of likelihood of finding em ployment Up to 100 percent of base amount (22,800 kroner in 1983); if par tial disability, pension proportional to loss of earning capacity Portugal 65 M 62 F 60 Early retirement for the unemployed Unemployed for 720 days Not available 55 Early retirement for workers in physically demanding occupa tions Miners, fishermen, longshoremen, and sailors Not available Disability Loss of two-thirds of earnings capacity The higher of two-thirds of minimum wage or one-half of earnings; if disability 30 percent or more, percentage of full pension corresponding to degree of disability 24 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Exhibit 1. Continued—Inventory of early retirement and disability schemes in Europe and North America, 1961-85 Retirement age M-male F-female Country Normal Spain Sweden 65 65 Switzerland 65 M 62 F United Kingdom 65 M 60 F https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Program Conditions for eligibility Amount of pension Early retirement Employer must replace retiree with youth seek ing first job; the normal retirement age is lower than 65 for those doing difficult, dangerous, or unhealthy work Minimum of 21,000 pe setas per month Disability 100-percent reduction of capacity to work in own trade or profession; for partial pension, 33-percent reduction in work capacity 100 percent o f actual earnings with minimum o f 23,565 pesetas per month Early 64 60 Actuarially reduced pension (began 1963) 60 Early retirement (began 1972) 60 Collective agreement with large firms and some industries (began 1975) 60 Flexible retirement with part-time em ployment (began 1976) Employed 5 out of the last 12 months; worker must transfer from full- to part-time work and work at least 17 hours a week 50 percent o f salary lost due to part-time employ ment Disability (began 1970) Working capacity reduced by one-half due to physical or mental impairment or on grounds of redundancy (special medical examination not required); partial disability available on grounds o f premature aging or mental incapac ity Full pension Disability (began 1960) Earnings capacity must be reduced by at least two-thirds or 360 days o f total incapacity for work followed by at least 50-percent loss of earning capacity Same as old-age pension plus supplement to guar antee a minimum subsistance level 62 -6 4 M 59 F Job Release Scheme5 (began 1977) Employer must replace retiree with someone from unemployment register; can be indirectly replaced by promotion or transfer; early retire ment age for men also depends on marital status and income o f spouse; lowered to age 60 for the disabled £50-71 a week depend ing on marital status and degree of disability 60 M Early Retirement Pen sion (began 1981) Men unemployed for at least 1 year Long-term supplemen tary unemployment ben efit 62 -6 4 M 59 F Part-time Job Release Scheme (began 1983) Worker must shift to part-time work and unem ployed person recruited for other one-half of job; from May 1985, employers recruiting un employed replacement workers that meet cer tain conditions receive grant of up to £840 £29-41 a week depend ing on marital status, with supplement o f £4 Disability 100-percent disabled Up to £54 a week plus unemployment supple ment of £31 a week; if 20-percent to 90-percent disabled, £ 1 1-4 8 a week Pension reduced by 0.6 percent per month for each month prior to age 65 Unemployment benefit has been paid for maxi mum period or labor market assistance has been paid for 450 days and opportunity to earn a salary is permanently reduced by one-half Full pension 70 percent of salary 25 MONTHLY LABOR REVIEW March 1987 • International Overview o f Early Retirement Exhibit 1. Continued—Inventory of early retirement and disability schemes in Europe and North America, 1961-85 Retirement age M-male F-female Country Normal United States 656 Program Conditions for eligibility Amount of pension Early Benefits reduced 5/9 of 1 percent for each month prior to normal age7 62 Early Retirement Op tion (began 1956 for women, 1961 for men) 558 Private pension plans Depends on plan Depends on plan Public employee plans Depends on plan Depends on plan Basic steel collective agreements9 Employees whose service is interrupted by a plant or department shutdown Varies Early retirement in individual firms (for example, Dupont, Caterpillar Tractor, began 1985) Varies with firm Varies with firm Disability Insurance Program Person is unable to work due to physical or Varies m ed ic a l im p a irm en t e x p e c te d to la st at lea st 1 year or result in death Commission o f the European Commu nities 55 Social volet, 198110 1 In 1984, the Danish Parliament passed Act No. 217 which codified into a single act all the previous schemes. 2 Incentive o f 5 percent a year for delaying retirement has been eliminated. 3 Under the reorganization plan adopted in the Saar in 1977, the early retire ment age was set at 55. 4 In 1979, it was extended to include public sector workers. 5 Originally applicable only in Assisted Areas, it was extended to rest of country. 6 In 1983, eligibility age for full retirement benefits was raised from 65 to 67, eligibility requirements. However, since the early 1970’s, a number of strategies have been implemented based upon short-run cyclical considerations, rather than on long-term perspectives. As unfavorable developments in the world economy beginning in the late 1960’s generally raised un employment levels and reduced the ability of economically vulnerable groups, including the aged and the disabled, to find and retain suitable employment, pressures mounted for additional initiatives. The result was a series of new plans combined with a relaxation and reinterpretation of existing laws. By 1975, for example, Italy had adopted provisions for early retirement with full benefits for long service, while Belgium, Finland, France, and Sweden permitted early re tirement for reasons of involuntary unemployment, and in Austria and the Federal Republic of Germany either condi tion was sufficient. In recent years, governments have shied away from low ering statutory retirement ages, preferring instead to rely on early retirement schemes. One possible explanation for this preference is the intended temporary character of these schemes, while modifying the statutory retirement age im 26 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Workers in steel companies undergoing restruc turing; retirement age is 50 in special cases Given for up to 3 years to be gradually phased in between 2002 and 2027. 7 jn [ 983 ^the early retirement reduction in benefits claimed at age 62 was raised from 20 percent to 30 percent, to be phased in gradually between 2002 and 2027. 8 Most common minimum age. 9 For example, Pension Agreement Between the United States Steel Corporation and the United Steelworkers o f America, July 31, 1980. 10 Matching contribution from member state. S ources : See Economic Commission for Europe, Economic Survey of Europe in 1985-1986 (New York, United Nations, 1986), p. 109. plies a permanent change. Such strategies permit a review and adjustment of early retirement schemes in the light of changing employment conditions and minimize the possibil ity of early retirement being enshrined as a right. As already noted, other developments have involved dis ability pensions. In the Federal Republic of Germany, Fin land, and the Netherlands, a series of changes in the defini tion of disability in the 1960’s and 1970’s provoked a substantial jump in the awarding of benefits on these grounds. In Germany, the Federal Social Court issued rul ings in 1969 and 1976 requiring pension institutions to place greater emphasis on whether an appropriate job existed in adequate numbers before reaching an unfavorable disability determination. In 1973, legislation in Finland eased the statutory disability definition to permit a person’s overall social situation to be taken into account. That same year, the Netherlands also broadened the definition of disability in the light of prevailing labor market conditions by taking into consideration the likelihood of the disabled finding suitable employment. In Sweden, disability pensions can be awarded on the grounds of redundancy without a medical examination of the applicant, and in Norway, the employ ment situation is one of the factors used in determining the degree of disability. In addition, Norway and Sweden per mit early retirement on grounds of “premature aging.” Con sequently, in a number of countries many awards for total disability have been granted to those only partially incapac itated but for whom no suitable job was available. The nature of the retirement decision A multitude of factors, alone or in conjunction, influence a worker’s decision to withdraw prematurely from the labor force. These factors include the difference between postand pre-retirement income, the unemployment rate, the ex tent of social security benefits and availability of private pension plans, the tax structure, and the inflation rate. Other factors, while not economic (and more difficult to quantify), are no less important in the decision to opt for early retire ment. These are job satisfaction, stress, ill health or disabil ity, the desire for leisure, marital status, and the presence of dependents. By encouraging workers to retire prematurely, the schemes described above have contributed to one of the most prominent labor market developments since the early 1960’s, namely the unprecedented drop in the participation rates of older men.7 Since 1960 (and particularly after 1970), participation rates have fallen precipitously among men aged 60 to 64, while declining less sharply, but in most cases still substantially, for those aged 55 to 59. This despite modest increases in life expectancy at older ages, improve ments in health conditions and levels of educational attain ment, and a long-term trend towards higher levels of infla tion, all of which would provide a stimulus for labor market activity. Table 1 presents comparative data on the labor force Exhibit 2. participation rates of older workers for selected years. For 11 countries of Western Europe and North America, the unweighted average of activity rates for men aged 60 to 64 fell from 60.6 percent in 1975 to 44.0 percent by around 1984. Within the relatively brief 14-year span between 1970 and 1984, labor market activity rates of such men plum meted by more than 2.5 percentage points annually in Bel gium, Denmark, France, Germany, and the Netherlands; fell to a lesser extent in Austria, Finland, and the United Kingdom (between 1.5 and 2.5 percentage points a year); and declined more modestly in Italy, Sweden, and the United States (less than 1.5 points a year). An average decline of 2.8 points took place in France, despite pension rates which are very progressive between the ages of 60 and 65 and which thus would discourage early retirement.8 Falling participation has also characterized men aged 55 to 59 in 9 of the 10 countries for which data are available. However, in all of those countries, the decline was consid erably less steep than for men in the subsequent 5-year age group. This is not surprising given the fact that, for the majority of early retirement schemes, eligibility is limited to workers aged 60 to 64. For all countries, the average un weighted activity rate of men 55 to 59 declined from 83.2 percent to 77.2 percent between 1975 and 1984. Generalizations concerning the pace of changes in partic ipation rates are difficult. Since 1980, the rate of decline in male participation for those aged 60 to 64 has tapered off in six countries (Belgium, Denmark, Finland, Germany, Swe den, and the United States), and it is likely that a lower limit is being approached in these countries. In France, the Netherlands, and the United Kingdom, the declines in par ticipation rates have accelerated since 1980. Trends in women’s participation rates display a greater degree of divergence than those for men. Between 1970 and Availability of early retirem ent options in 14 countries, 1985 Early retirem ent option Country Disability Unemployment Reduced benefit Austria ..................... .............................................. Belgium .................................................................. Denmark ................................................................ F in lan d .................................................................... France .................................................................... X X X X X X X X X X Federal Republic of G erm any.............................. Italy ........................................................................ Netherlands ........................................................... Norway .................................................................. S w eden.................................................................... Switzerland ........................................................... United Kingdom ................................................... X X X X X X X X X X C a n a d a .................................................................... United States ......................................................... X X https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis — Long service Arduous occupations Partial retirem ent X X X X _ — __ __ _ _ _ X — X X X X __ X X _ — __ __ __ __ __ _ _ _ X X X __ X __ — — — X — X — — — _ 27 MONTHLY LABOR REVIEW Table 1. March 1987 • International Overview o f Early Retirement Labor force participation rates of older workers by age and sex, selected years, 1970-84 Country and sex Average annual change 1980 1984 _ _ 374.0 81.8 67.6 80.9 '75.1 470.5 687.8 70.0 68.1 -2 .0 0.5 -0.5 -1 .7 82.3 74.8 74.2 87.7 90.1 80.1 '73.3 472.6 687.2 82.0 -0 .7 -0 .6 -1.4 -0.3 -0 .8 1970 1975 _ _ 65 years and over 60-64 years 55-59 years 1970 1975 1980 1984 Average annual change 47.7 65.0 - 37.1 58.3 574.5 52.8 56.7 27.5 340.1 59.7 43.0 47.6 121.5 434.1 656.9 43.0 31.1 -2 .0 -4.0 -2 .9 -1 .6 -2 .8 74.7 48.2 773.9 778.1 782.9 58.3 42.4 64.9 74.0 82.3 44.2 39.6 50.1 69.0 71.2 35.2 136.8 443.7 668.4 56.7 -2 .8 -0.9 -3 .0 -0.9 -2 .0 Average annual change 1970 1975 1980 1984 - 19.0 “ 212.4 2.547.0 10.4 222.7 25.9 2.38.8 236.0 17.0 214.3 1.26.7 2.46.2 634.5 12.0 211.0 0.3 -1.0 -2.1 -0 .5 -1 .3 230.6 12.9 711.4 728.9 2.730.4 11.0 10.4 8.0 19.9 225.9 7.4 12.6 4.8 14.2 216.6 29.4 116.3 44.1 11.1 213.5 -1 .5 0.3 -0 .7 -1 .6 -1 .3 Men _ Austria.............................. Belgium ............................ Denmark............................ Finland.............................. France .............................. 76.6 - 82.2 584.5 71.3 83.3 Germany............................ Ita ly .................................. Netherlands..................... Sw eden............................ United Kingdom8............... 89.2 81.0 786.9 790.9 793.1 85.7 77.8 80.3 89.7 93.0 Canada.............................. United S tates................... _ _ _ _ _ 89.5 84.4 81.9 80.2 -0 .7 75.0 65.7 61.0 56.1 -1 .4 24.3 26.8 18.5 21.7 14.7 19.1 12.6 16.3 -3 .2 -0.8 Average........................ 86.7 83.2 79.5 77.2 -0 .8 68.2 60.6 50.3 44.0 -2.2 23.0 18.9 14.3 12.8 -1 .3 _ _ - 35.9 - 7.8 531.2 32.5 29.8 45.8 630.4 38.0 19.0 -0 .4 -0.3 -0.1 0.2 -1 .2 - -0 .7 1.8 0.7 -0.1 8.8 36.4 28.9 27.4 27.3 17.6 319.1 52.0 57.0 47.3 125.9 417.2 658.5 66.0 42.9 _ 21.3 547.6 56.4 43.5 22.7 2,31.7 212.7 6.0 26.8 1.24 .O 2,42.5 613.1 4.0 225.9 0.4 0.0 0.2 0.0 -0 .6 37.2 18.2 717.7 754.6 750.9 38.4 17.3 17.9 60.8 52.4 38.7 21.4 18.2 68.8 53.6 40.2 120.8 420.2 872.1 51.1 0.2 0.2 0.3 1.6 0.0 22.5 10.6 711.9 734.5 728.8 16.4 8.5 10.7 38.3 28.6 13.0 11.0 9.8 41.0 22.4 11.8 110.5 49.9 646.2 21.2 -0 .8 0.0 -0.2 1.1 - 0 .6 3.0 3.5 0.9 3.7 23.6 24.5 14.3 40.8 3.8 23 .O -0 .4 0.1 -0.1 -0.4 -0 .3 Canada.............................. United S tates................... _ _ _ _ - 49.0 47.9 48.6 49.8 0.1 36.1 33.3 A verage....................... 40.5 40.4 42.5 42.2 0.4 25.8 23.7 - _ _ - - Women _ Belgium ............................ Denmark............................ Finland.............................. France .............................. Germany............................ Ita ly .................................. Netherlands..................... Sw eden............................ United Kingdom8............... _ 56.1 _ _ 1 Data relate to 1983. 2 Data relate to persons age 65 to 69 years. 3 Data relate to 1979. 4 Data relate to 1981. 3 Data relate to 1976. 6 Data relate to 1982. 7 Data relate to 1971. 8 Data relate to Great Britain only. Note : Dashes indicate data are not available. 1984, women aged 60 to 64 reduced their rates by more than 0.5 point a year in three of the countries studied, while in six countries the activity rate changed little (between —0.3 and +0.2 point on an average annual basis). Sweden was excep tional in that a significant increase took place (1.1 percent age points a year). For women aged 55 to 59, participation rates declined only in Belgium and France. Generally, the male-female ratio of early pensioners for Western Europe as a whole has been approximately 3 to 1, whereas the ratio of men to women in the labor force has been around 1.6 in recent years. One conclusion to be drawn from the data is that older women, particularly those not married, display a stronger labor force attachment than their male counterparts. Among the possible reasons for this phenomenon is that the shorter time women spend in the labor force and lower wages of female workers result in smaller lifetime earnings upon which pension benefits are based. In addition, early retirement programs have been concentrated in the industrial 28 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - 33.3 33.4 -0.2 20.8 21.3 -0 .2 - - 4.4 210.7 2.6 72.2 78.7 276.3 - 22.5 12.1 2.52.9 211.7 4.4 2.1 1.7 6.1 24.9 - 9.7 8.3 4.3 8.1 4.7 7.5 -1.8 -0 .2 6.4 5.7 4.8 4.8 -0 .4 Source: Mikrozensus 1983, Beitrage Zur Osterreichen Statistik, Vienna, 1984; Statistiches Handbuch für die Republik Österreich, various issues, Österreichischen Statistisches Zentralamt; Eurostat, Labour Force Sample Surveys, various issues, Luxembourg; Arbeidsmarked, Danmarks Statistik,various issues, Copenhagen; Labour Reports, various issues, Min istry of Labour, Helsinki, Finland; Annuaire Statistique de la France, 1984, insee, Paris; Enquête Sur l ’Emploi de 1984, les Collections de I’ insee, D 105; Statistisches Jahrbuch, various issues, Statistisches Bundesamt, Wiesbaden; Annuario di Statistico delLavoro, various issues, Institute Centrale di Statistica, Rome; Netherlands, unpublished data provided by the Central Statistical Office, 1985; For GammaI För Arbete? Betänkande fran aldrearbetskommittén, Stockholm, 1983; The Labour Force Sun/eys 1970-1980, Statistiska Meddelanden, AM 1981:33, Stock holm; Arbetskraftsandersökningarna 1984, Statistika Meddelanden, Am 12 SM 8501 ; Employ ment Gazette, July 1985, Department of Employment, London; The Labour Force, various issues, Statistics Canada, Ottawa; Employment and Earnings, various issues, Department of Labor, Washington DC. sector, and particularly manufacturing. It is in this sector that men predominate to a greater degree than in the total labor force. Program characteristics and costs Despite the extensive number and coverage of early re tirement schemes, data do not exist in sufficient detail to permit the scope and effects of the schemes to be quantified. One difficulty is the fact that several different funds in a single country may dispense pensions, with no agency col lecting data on a national basis. (In France, for example, there are currently more than 100 different pension funds.) Thus, information on numbers of early retirees, their previ ous occupational and industrial characteristics, and the costs incurred for early-out programs is for the most part not published regularly, if at all. In the United States, the exis tence of a vast array of private pension schemes (about 500,000) operating independently of the Social Security system makes data collection virtually impossible.9 In re cent years, a number of U.S. companies have offered “golden handshakes,” or early retirement, to employees as a means of thinning out their work forces, but data on such programs are, of course, not reported to Social Security authorities.10 Table 2 provides some estimates of the size of the various programs, which, if aggregated, indicate that in Western Europe and North America there were more than 5 million recipients of early retirement pensions and at least 11 million recipients of disability pensions in 1984. To the extent that private pension plans are operating, these num bers are understated. To gauge the relative size of such programs, the numbers of disabled as a proportion of the total labor force and of early retirees as a proportion of the appropriate age group have also been calculated. Many of the legislative and policy changes of recent years are reflected in the data. The number of disability pensions in force as a percentage of the labor force increased from 6.4 percent to 8.7 percent in the Federal Republic of Germany between 1975 and 1984, went from 7.9 percent to 9.4 per cent in Finland between 1970 and 1983, and almost tripled, from 4.4 percent to 12.2 percent, in the Netherlands be tween 1970 and 1984. For many years of the study period, the number of disability pensions awarded to men in the Federal Republic of Germany exceeded the number of re tirement pensions. During the 1970’s, the proportion of traditional pensions fell from 40 percent to 10 percent of the total as a consequence of the high takeup of early retirement and disability schemes. Another contributing factor in the flourishing of disability pensions in a number of countries is a replacement ratio (benefits as a proportion of previous earnings) for disability payments that often is higher than that for unemployment payments. In some cases, the pen sion exceeds predisability income. The rapid growth in the United States disability program, however, is surprising, as the criteria for disability have remained quite stringent and the program is not intended to pay benefits to either healthy unemployed workers or to those with only marginal impair ments. Nevertheless, the number receiving disability bene fits in that country rose sharply between 1970 and 1980.11 One basic distinction among national disability systems has been the minimum reduction of work capacity required for eligibility. In the Netherlands, a reduction of only 15 percent is necessary, while in many countries, it is between 50 percent and 66 percent. The United Kingdom and the United States are at the other end of the spectrum, demand ing that the recipient be totally incapable of work. It is interesting to note that in the Netherlands and in Sweden (where only a 50-percent reduction in work capacity is re quired), more than 85 percent of the beneficiaries were receiving the full benefit in 1978. This contrasts sharply with systems that base disability ratings on a medical scale and under which only a minority of beneficiaries receive the maximum benefit. Lack of data severely restricts cross-national comparisons https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis and makes it difficult to discern any clear patterns. This is certainly the case if attempting to generalize about the rela tionship between early retirement and declining activity rates among older men. Of those countries with either a large proportion of early retirees— Denmark, Finland, Ger many, and the United States, with more than 15 percent of the appropriate age— or a large proportion of disability pen sioners— Italy, the Netherlands, and Norway, with more than 10 percent of the labor force— only in Denmark, the Federal Republic of Germany, and the Netherlands has there been a substantial fall in the labor force participation of men aged 60 to 64. Looking at the countries with the most significant de clines in participation rates (for example, Belgium, Den mark, and the Netherlands), one might conclude that the decline is a function of more favorable pension characteris tics (such as higher earnings replacement ratios and lower thresholds of eligibility) than those in countries such as the United States which display much smaller declines in partic ipation rates and less generous benefits. While this may hold true to a certain extent, it should also be borne in mind that not negligible declines also have taken place in the United States. Although Social Security policy in that country was not altered to foster early retirement over the study period, and in fact was modified to encourage the postponement of retirement, the proportion of men aged 62 to 64 who were out of the labor force rose from 31 percent to 52 percent between 1970 and 1983.12 In the United States, the response to mounting unemployment has been to continue the histor ical approach of temporarily extending the duration of un employment benefits. Given the lower unemployment bene fits and shorter eligibility period as compared with most of the European countries, the United States figures suggest that a “discouraged worker” effect might be operating, whereby older workers unable to find employment are drop ping out of the labor force in order to collect actuarially reduced pension benefits at an earlier age.13 A negative relationship between rising unemployment and older male participation is suggested by the data for Belgium, Den mark, and the Netherlands, countries that have concomi tantly experienced substantial increases in unemployment and large outflows of 60- to 64-year-old men from the labor force. This contrasts with low unemployment countries such as Austria, Finland, and Sweden, where declines in the participation rates of men in the same age bracket have been of a much more modest nature. It can be also noted that, by around 1980, a stabilization or tapering off occurred in the growth of disability pensions in some countries— Denmark, Finland, the Netherlands, and the United States— which has been offset to some extent by an acceleration in the number of workers opting for early retirement.14 One might thus speculate that, provided with a choice, workers are showing a growing preference for early retirement pensions as opposed to disability pensions. This may also be a reaction to various caps on government 29 MONTHLY LABOR REVIEW March 1987 • International Overview o f Early Retirement expenditures which resulted in the application of stricter criteria in the awarding of disability pensions. The lax inter pretation of disability criteria which prevailed in the 1970’s helped foster a situation whereby in some countries, such as Italy, the Netherlands, and Norway, the ratio of labor force participants to disability pensioners had fallen to approxi mately 8 to 1 by the early 1980’s.15 An examination of the available data on early retirees classified by industry of previous employment reveals that early retirement is concentrated in those sectors where em ployment contractions have been most pronounced, such as textiles and clothing, engineering, metal industries, and construction. In Belgium, France, the Federal Republic of Germany, and the United Kingdom, participants tend to be a very atypical sample of the labor force, with unskilled and semiskilled manual workers being overly represented among early retirees and professionals and managers under Table 2. represented. The population of disability pensioners in Sweden also exhibits such a bias, heavily weighted towards unskilled workers in declining industries. Evaluating early retirement schemes How effective a weapon is the promotion of early retire ment in combating unemployment? Given both the popular ity and enormous costs associated with early retirement schemes, the dearth of studies evaluating estimated versus real costs of the plans is surprising. One method often used to assess public expenditures, cost-benefit analysis, can serve as the basis for evaluations of early retirement schemes. However, the problems that arise with this tech nique are formidable and involve, firstly, the numerous factors that must be taken into consideration, and secondly, the values to impute to the factors. Leaving aside the ques tion of imputed values, a cost-benefit taxonomy displaying Number of beneficiaries of selected retirement and disability pensions, 12 countries, selected years, 1970-85 [N u m b e rs in th o u s a n d s ] Plan type Country Austria................... Belgium ................. Denm ark............... Finland ................. France ................... Federal Republic of Germany ___ Ita ly ....................... Netherlands........... Noway ................. Sw eden................. United Kingdom . . . United S tates........ Long-service/unemployment............. Percent of population 55-64 ........ Early retirement1 .............................. Percent of population 55-64 ......... Voluntary early retirement................. Percent of population 60-69 ........ Disability ........................................... Percent of labor fo rc e ................... Unemployment.................................. Percent of population 60-64 ......... Special early retirement ................... Percent of population 55-64 ........ Disability ........................................... Percent of labor f o rc e ................... Early retirement3 .............................. Percent of population 55-64 ........ Early retirement.................................. Percent of population 55-64 ......... Disability5 ......................................... Percent of labor fo rc e ................... Disability ........................................... Percent of labor f o rc e ................... Early retirement................................ Percent of population 60-64 ........ Disability Security/General Disability Act ................................ Percent of labor f o rc e ................... Disability6 ......................................... Percent of labor fo rc e ................... Flexible (partial) retirement............... Percent of population 60-64 ......... Disability ........................................... Percent of labor fo rc e ................... Job release schem e.......................... Percent of population 60-64 ......... Early retirement................................ Percent of population 60-64 ........ Early retirement11 ............................ Percent of population 60-64 ........ Disability Insurance Program12 ......... Percent of labor f o rc e ................... - 112 4.7 1 0.4 172 7.9 13 0.5 - - 1980 52 27.3 333 33.5 149 6.0 13 5.6 249 11.0 84 2.0 64 8.7 81 8.1 53 10.5 152 5.7 17 8.1 243 10.0 215 4.5 73 9.6 99 9.7 63 12.4 151 5.7 23 10.7 “ 240 9.7 330 6.5 86 10.9 117 11.1 70 13.8 152 5.7 33 14.9 45 9.2 236 9.3 488 9.1 1,089 18.3 1,715 6.4 - 1,407 23.8 2,025 7.5 20 3.4 1,503 24.6 2,129 7.8 - 1,613 25.2 2,252 8.2 - 661 12.0 689 12.2 192 9.7 67 14.3 293 6.8 »66 2.6 2,017 19.9 4,682 4.3 191 9.7 63 13.0 302 7.0 858 2.2 27 1.0 2,115 20.4 4,456 4.1 - - - " “ 215 4.4 - 212 5.4 1,225 14.1 2,665 3.1 349 6.9 - 715 3.1 289 7.0 810 0.4 - 1,723 18.3 4,352 4.5 1981 1982 1975 1983 1984 1985 _ _ _ “ “ 129 11.5 76 15.1 141 5.3 35 15.5 ~ 238 9.4 696 12.4 - - 711 12.2 728 12.3 4741 12.2 757 ” 197 9.9 61 12.4 309 7.1 867 2.5 204 10.1 54 11.0 314 7.2 995 3.4 219 10.8 - 1054 - 2,213 20.9 3,973 3.5 2,321 21.6 3,813 3.4 1086 ~ 2,407 23.2 3,822 3.3 11 Retired w o rke rs aged 62 to 64 re ce ivin g S ocial S ecu rity benefits. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - " 10 D ata relate to M arch. 8 D a ta re la te to April. ” 1,822 27.6 2,373 8.7 3,046 13.0 3 D a ta re la te to D e c e m b e r 31. 7 D a ta re la te to 1976. “ 1,718 25.6 2,357 8.6 3,139 13.5 - 9 D ata relate to S ep tem be r. 6 N a tion a l in suran ce . - 4634 1 1ncludes co n tra ctu a l, sta tu to ry, and sp ecia l sch em es. 5 In clu d e s o c c u p a tio n and e m p loye e d isab ility pensions. - 675 11.7 2 D a ta re la te to 1977. 4 D a ta re la te to J u ly 31. 30 1970 1»2,453 '03,857 3.3 12 D e cem be r o f each year. Includ es d e p e n d e n ts a nd re la tes o n ly to p aym en ts u nd er S ocial S ecurity. Note : Dash indicates data not available. Source : S ee E con o m ic C o m m ission fo r E urope, Economic Survey of Europe in 1985-1986 (N ew Y ork, U nited N ations, 1986), p. 109. Exhibit 3. Benefits and costs of early retirement schemes to the program participant, employer, and government Party Benefits Costs Program participant: Retiree • Value of pension • Value of leisure • Social and psychological benefits of not being unemployed1 • Value of salary forgone • Value of unemployment benefit foregone1 Worker replacing retiree2 • Value of salary • Value of training and experience • Social and psychological benefits of not being unemployed • Value of unemployment benefit foregone Employer • Younger age structure of the work force • Value of lower salary expenditures • Loss of experienced worker Government • Reduction in expenditures for unemployment benefits and other income transfer programs • Increase in social security contributions2 • Increase in income taxes2 • Expenditures on early retirement schemes 1Assumes retiree would have been unemployed in the absence o f scheme. 2For schemes which require that retiree be replaced with another worker. the gains and losses associated with early retirement schemes for participants, employers, and governments is shown in exhibit 3. Even if based on variables that are only roughly approximated, such an accounting framework can highlight the equity considerations involved, as well as focus on economic efficiency. Although not appearing in the exhibit, another cost to be factored in is that of dead weight, namely payments to persons who would have re tired anyway. Depending on whether the retiree is replaced or not, the exhibit would have to be modified accordingly. This raises the issue of the extent to which retirees are replaced with other workers. As few countries have moni tored schemes in progress or have incorporated an evalua tion component into them, estimating the overall impact on employment is hazardous. Based on various published stud ies, table 3 provides, for selected schemes, estimates of the proportion of early retirees that have been replaced with other workers. Apparent is the range of replacement rates, which vary from a low of 25 percent in the Netherlands to 95 percent in France, where replacement of the retired worker is mandatory. However, in Belgium, where replace ment is also obligatory, the rate is only 67 percent, despite fines which can be levied against offending employers. This is one indication of the difficulty involved in monitoring compliance with the schemes. Viewed in this way, alleviat ing unemployment by means of early retirement is much more costly in the Netherlands, where only 1 out of 4 early retirees is replaced, than in France where, under solidarity contracts, virtually all jobs vacated by early pensioners have been filled.16 However, even in those countries where the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • Decrease in social security contributions3 • Decrease in income taxes3 3 For schemes in which retiree is not replaced with another worker. replacement of retirees is mandated (Belgium and France), no studies have followed the employment of newly recruited workers beyond the obligatory employment period, which is normally 6 months to a year. Another possible avenue of analysis would be to compare early retirement costs to alternative employment policies such as unemployment benefits. Table 4 compares the two policy options in terms of replacement ratios, that is, the ratio of the pension or unemployment benefit to the previous salary. With the exceptions of France, where unemployment payments are substantially higher than those for early retire ment,17 and the Netherlands, where unemployment benefits are only slightly higher, early retirement payments have been equal to or have exceeded unemployment benefits in the countries for which data are available. Thus, the strong preference shown by workers for early retirement is not surprising. Furthermore, early retirement schemes are paid until the normal retirement age is reached, while entitlement to unemployment benefits usually lasts for a maximum of 2 years. Conclusions Even if early retirement schemes fail to boost the overall level of employment or satisfy criteria of economic effi ciency, they may still be judged beneficial if employment is redistributed in favor of groups that suffer from dispropor tionately high rates of unemployment. On the other hand, if workers who are already unemployed are merely redefined as early retirees, nothing has been accomplished to meet the aspirations of these workers who wish to continue working. 31 MONTHLY LABOR REVIEW March 1987 • International Overview o f Early Retirement In fact, the very existence of early-out schemes may remove any reluctance employers have in declaring workers redun dant. This then becomes a rather expensive method of dis guising unemployment. The enormous potential outflow of older workers from the labor force as a consequence of demographic aging, further reinforced by incentives to retire early, would put serious pressures on national economies through its impact on national pension schemes. Part of the strain can be traced to imposing upon pensions a function for which they were never designed, that is, a mechanism for narrowing the gap between the supply of, and demand for, labor.18 By fostering early retirement as an ad hoc method of lowering unemployment, the danger exists of institutionaliz ing a short-term policy response. Given the anticipated drain on pension systems due to the growing propensity for early retirement and to population aging, the ongoing viability of early-out schemes will require that a growing share of national income be devoted to the support of older depend ents.19 This will have significant ramifications for macroec onomic policies, public support programs, and tax meas ures. Dissipating the strain on pension schemes could take Table 3. Replacement rates of early retirement schemes Country and scheme Percent of retirees replaced Belgium: Early retirement pension............................ 67 Denmark: Early retirement schem e............................ 70-75 Finland: Early retirement for veterans..................... 45 France: Solidarity contracts.................................... 95 Germany: Early retirement for long service ............... 60 Netherlands: Early retirement ......................................... 25 Sweden: Partial pension........................................... 50 United Kingdom: Job release schem e.................................. 70-75 Sources : Social Security, Unemployment and Premature Retirement, Studies and Research, No. 22, International Social Security Administration, Geneva, 1985, pp. 37, 47; Efficiency of Labour Market and Employment Policy Measures, Study No. 82/6, p. 131, Commission of the European Communities, Brussels, 1982; M. Frossard, “Crise et cessations anticipées d’activité: une comparaison internationale," Travail et Emploi, Ministère des affaires sociales et de la solidarité nationale, April-June 1983, No. 16, Paris, p. 24; Monthly Labor Review, October 1985, Department of Labor, Washington dc., p. 40; D. Metcalf, Alternatives to Unemployment, Special Employment Measures in Britain, Policy Studies Institute, London, 1982; R. Layard, Unemploy ment in Britain, Causes and Cures, Centre for Labour Economics Discussion Paper No. 87, London School of Economics, 1981. Table 4. Comparison of early retirement and unemploy ment benefits, selected countries Country Belgium ...................................... Denm ark.................................... Finland ...................................... France ........................................ G erm any.................................... Netherlands................................ Sw eden...................................... Early retirement benefit1 67 92 80 65-75 377 80-85 85-90 Unemployment benefit2 67 92 44 90 68 89 82 1 Percent of previous salary. 2 Rate of disposable income replacement of an unemployed “typical worker” (married worker with three dependents in 1982). 3 Based on monthly net salary of 2,214 dm. Sources : Exhibit 1; and Economic Commission for Europe, Economic Bulletin for Europe, vol. 85, no. 3, (New York, Pergamon Press for the United Nations, September 1983), p. 292. the form of increasing employment, boosting productivity, raising employee and employer contributions, or some com bination of the three options. Because the first two options are a function of macroeconomic developments, they are extremely difficult to implement. The third possibility, being an administrative decision, would be relatively simple to undertake, although it could have serious and unintended repercussions. Burdening em ployers and employees with additional payroll taxes could be counterproductive as it may shrink the demand for labor. Futhermore, it may also stimulate even more retirement and promote a shadow, or undergound, economy in which workers evade the payment of taxes.20 (Yet, for early retire ment options to be attractive, they should not be based on actuarially discounted pensions.) Another factor to be taken into consideration if devoting a larger slice of national product to the elderly is the possible backlash against a redistribution of wealth if it is perceived as being at the expense of other population segments, such as children. In the United States, the sheltering of the Social Security program from budget cuts has been viewed by some as contributing to the substantial reductions in national programs benefiting children.21 From a long-term perspective, the advisability of encour aging premature retirement seems highly questionable. Given falling birth rates and subsequent future contractions in the working-age population, labor force growth will come to a virtual standstill in developed countries by the turn of the century. In addition, the ratio of pensioners to wage earners contributing to social security programs will rise. A more appropriate future policy would thus appear to call for gradually raising the mandatory age of retirement, while eliminating the incentives to early retirement. □ -FOOTNOTES1 Wage subsidy schemes, a measure designed to boost the demand for labor, were discussed in Economic Commission for Europe, Economic Survey of Europe in 1983 (New York, United Nations, 1984), pp. 3 8-54. 2 For example, under the Social Security system, retirement with actuar ially reduced benefits prior to age 65 was initially made available to women 32 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis in 1956 and in 1961 to men. With the United States in the midst o f a recession in 1961 and suffering from almost 7-percent unemployment, it was recognized that unemployed older workers would encounter enormous difficulties in finding jobs. 3 It should be noted that the expansion of disability programs was also partly a consequence o f the changing definition of good health; thus, eligibility criteria for disability have been loosened not only for employ ment reasons. 4 Economic Commission for Europe, Economic Survey of Europe in 1985-86 (New York, United Nations, 1986), p. 45. 5 World Population Prospects: Estimates and Projections as Assessed in 1984 (New York, United Nations, 1986). 6 In Norway, schemes have been implemented to encourage the contin uation o f work beyond the normal pensionable age o f 67. Given the ex tremely low levels o f unemployment in that country, the government has not found it necessary to foster premature retirement. (Over the 1980-85 period, the unemployment rate in Norway never exceeded 3.3 percent). 7 A substantial amount o f research exists concerning the contribution of early retirement schemes to falling male participation. See, for example, Virginia Reno and Daniel Price, “Relationship Between the Retirement, Disability and Unemployment Insurance Programs: The U .S. Experience,” Social Security Bulletin, May 1985; Social Security, Unemployment and Premature Retirement, Studies and Research No. 22 (Geneva, Interna tional Social Security Association, 1985); and “Bilan de L ’Emploi, 1984,” Dossiers Statistiques du Travail et de VEmploi (Paris), September 1985, No. 12-13. 8 In France, the lowering o f the normal retirement age in 1984 from 65 to 60 does not appear to have had any noticeable impact yet on the trend in male participation. The activity rate for men 6 0 -6 4 was 2.5 percentage points lower in 1984 than in 1983, which is in keeping with the downward movement that has been observed in the last few years. It had been pre dicted that a decline in the retirement age would result in 350,000 addi tional retirees. See Roland Cuvillier, The Reduction of Working Time (Geneva, International Labor Office, 1984), p. 63. 9 A 1979 survey o f private pension plan coverage in the United States found that about 50 percent o f all men and 31 percent of all women who were employed in private industry were covered by private pension plans. Gayle Rogers, Pension Coverage and Vesting Among Private Wage and Salary Workers, 1979: Preliminary Estimates from the 1979 Survey of Pension Plan Coverage, Working Paper No. 16 (Washington, Office of Research and Statistics, Social Security Administration, 1980). 10 In the United States, the prevalence of early retirement options in pension plans o f medium and large sized firms was confirmed in a study by the Bureau o f Labor Statistics which estimated that 58 percent of workers were included in plans that permitted early retirement. See Em ployee Benefits in Medium and Large Firms, Bulletin 2176 (Bureau of Labor Statistics, August 1983). 11 A recent study concerning the United States concluded that the in creasing relative generosity or leniency of disability programs has had a small but statistically significant impact on the work choice o f older per sons. Older low-wage earners with health problems are identified as those most responsive to changes in program benefits. See Robert Haveman and Barbara W olfe, “Disability Transfers and Early Retirement: A Causal Re lationship?” Journal of Public Economics, vol. 24, 1984, pp. 4 7 -6 4 . 12 Based on a detailed analysis of longitudinal data, a recent study concluded that the accelerating decline in labor force participation of older men between 1969 and 1973 in the United States can be explained by the substantial increase in real Social Security benefits that took place in that period. See Michael Hurd and Michael Boskin, “The Effect of Social Security on Retirement in the Early 1970’s,” Quarterly Journal of Econom ics, November 1984, pp. 767-90. 13 Despite the accumulation of a considerable body o f research, a com prehensive understanding of the interrelations associated with cyclical labor market behavior does not yet exist. The relationship between changes in labor force participation and unemployment in terms o f added workers and discouraged workers continues to invoke controversy. If, during reces sions, job hunters become discouraged and withdraw from the labor force, measured unemployment would be artificially deflated. On the other hand, if people enter the labor market looking for jobs (added worker effect), possibly due to an out-of-work spouse, recorded unemployment will be higher. An analysis o f monthly employment-status transition probabilities for the United States for the years 1968-84 has led one researcher to suggest that, during recessions, the likelihood of an unemployed person https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis dropping out of the labor force decreases while the probability o f someone outside the labor force entering the labor force increases. This casts doubt on the widely held discouraged worker effect which would predict just the opposite pattern. See Michael Keeley, “Cyclical Unemployment and Em ployment Effects o f Labor Force Entry and Exit,” Economic Review, Fed eral Reserve Bank o f San Francisco, Summer 1984, pp. 3 -2 2 . 14 In a number o f studies carried out in the late 1970’s, it was shown that for the Nordic countries, regional variations in disability density could be explained by the regional unemployment rate, while in the United States, the increase in the number of disability benefit applications was linked to the unemployment rate. See P. Siren, “Taloudellisen tilanteen ja tyokyvyttomyyden valiset sushteet,” Tyokyvyttomyys-tutkimuksen tehtavat ja mahdollisuudet [“The Economic Situation and Disability,” Purpose and Possi bility of the Study on Disability] (Helsinki, Social Insurance Institution, 1979); and Mordechai Lando, Malcolm Coate, and Ruth Kraus, “Disability Benefit Applications and the Economy,” Social Security Bulletin, October 1979. 15 In view of the unremitting climb in disability payments, the govern ment of the Netherlands imposed more restrictive criteria for the determina tion of disability and instituted a number o f budgetary cutbacks for the pension system in 1984. The same year, in Italy, legislation came into effect which eliminated linking disability to the state of the labor market. The new act refers only to a reduction in work capacity based on an assessment o f the physical and mental condition o f the applicant. Likewise, in 1984, the U .S. Congress passed legislation completely overhauling the disability program. At present, a review of all those on the Social Security disability rolls is being carried out. The new rules provide that individuals can only continue receiving disability benefits if there has been no medical improvement in their ability to work since the last evaluation. In a previous review process in 1981, 100,000 people lost their disability benefits. 16 Assuming 15-percent nonreplacement and 10-percent deadweight, it was estimated that under the Job Release Scheme in the United Kingdom, the net exchequer cost of removing one person from the unemployment register was 676 pounds in 1978. This was considered to be one-third the cost associated with a general reduction in retirement age. See David Metcalf, Alternatives to Unemployment: Special Employment Measures in Britain, no. 610 (London, Policy Studies Institute, 1982), p. 48. 17 Despite smaller early retirement payments relative to unemployment benefits in France, in 1983 the government spent 43 billion francs on early retirement as compared with 41 billion francs for unemployment benefits. 18 In the United States, the possibility of early retirement has been viewed less as a method to regulate the supply o f labor and more as a means of providing a greater choice between work and leisure. Under the Social Security Amendments enacted in 1983, the eligibility age for full retire ment benefits was raised from 65 to 67, to be gradually phased in between the years 2002 and 2027. In addition, the early retirement reduction in benefits claimed at age 62 was increased from 20 percent to 30 percent, while the benefit increment for delayed receipt of retirement benefits was augmented from 3 percent to 8 percent a year. These modifications were motivated by the urgent need to rescue the Social Security system from the brink of bankruptcy. 19 A series of calculations carried out for nine countries o f Western Europe and North America indicated that lowering the age of retirement from 60 to 55 in 1990 would require that an additional 1.5 percent to 3.4 percent of gross domestic product be devoted to pension expenditures. See Economic Commission for Europe, Economic Bulletin for Europe, vol. 85, no. 3 (New York, Pergamon Press for the United Nations, September 1983), p. 314. 20 Econometric studies have shown that taxes imposed on wages have a statistically significant and quantitatively important impact on the probabil ity o f retirement. This raises the spectre o f a self-reinforcing trend towards early retirement, spawning even greater levels of nonparticipation on the part o f those workers unwilling to shoulder the burden of additional taxes. See, for example, Harvey Rosen, “What is Labor Supply and Do Taxes Affect It?” American Economic Review, May 1980, pp. 171-76. 21 See S. Preston, “Children and the Elderly: Divergent Paths for Amer ica’s Dependents,” Demography, November 1984, pp. 4 3 5 -5 7 ; and “Creating a New Class Among Young, Poor,” The International Herald Tribune, Oct. 29, 1985, p. 1. 33 The Great Migration of Afro-Americans, 1915-40 Between the World Wars, more than 1 million black Americans left the South to seek opportunity and fuller citizenship in the North S pencer R. C rew The “Great Migration” of Afro-Americans from largely rural areas of the southern United States to northern cities during and after World War I altered the economic, social, and political fabric of American society. It made the re gional problems of race and sociopolitical equality national issues and gave Afro-Americans a role in the election of northern political leaders, in contrast to the absence of a political role in the South. It helped to spawn a generation of black leaders who struggled for the full citizenship rights of Afro-Americans. Because the hundreds of thousands of people who participated in the migration tended to settle in northern urban areas, the effects of the population change were greatly magnified. The momentousness of the migration as an event does not alter the fact that the migrants were ordinary people. Like colonial settlers or western pioneers of an earlier day, they were not looking to change the world, only their own status. A mixture of farmers, domestic servants, day laborers, and industrial workers, they came from all parts of the South, hoping for a chance to improve their own station or at least that of their children. When the outbreak of World War I drastically changed the job structure of northern urban areas, moving to these cities offered a fresh start and new opportunities for this massive wave of migrants. Spencer R. Crew is an historian at the National Museum of American History, Smithsonian Institution, and curator o f the exhibition, “Field to Factory: Afro-American Migration, 1915-1940.” 34 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis War trigger Without the increase in job opportunities caused by World War I, the Great Migration might never have oc curred. The fighting in Europe dramatically increased the demands on companies in the United States to produce mu nitions and other goods to support the war effort. At the same time, the labor pool these companies normally de pended upon— immigrants and native-born Americans— was dwindling. The draft siphoned off many of these men, while the turmoil in Europe disrupted the flow of immi grants from that area. Desperately in need of additional workers, northern businesses looked southward for new sources of labor. Because Afro-Americans made up a large portion of the unskilled work force in the South and because of social conditions there, they became the targets of aggres sive recruitment campaigns. Northern companies offered well-paying jobs, free transportation, and low-cost housing as inducements to Afro-Americans to move North. They also sent labor recruiters into the South who received a fee for every recruit they provided for the company they repre sented. Local prod Socioeconomic and political conditions in the South made Afro-Americans likely candidates for migration. After the end of post-Civil War Reconstruction, the Nation’s legisla tors and the Supreme Court had turned their backs on black Americans and left determination of their citizenship rights to local jurisdictions. In the South, this abdication of author ity resulted in the creation of a two-tiered system of citizen ship with one set of rules for whites and a more restrictive set for Afro-Americans. In this system of “Jim Crow” laws, black Americans, under penalty of imprisonment or possi bly death, were forced to use special sections when they rode on public transportation, ate in restaurants, or attended theaters. Southern statutes also excluded them from voting through such manipulations of the law as grandfather clauses, poll taxes, or literacy tests which prevented the majority of Afro-Americans from voting while allowing their white counterparts access to the ballot. Oppressive as the political situation was, the economic situation was even more oppressive in that it locked tenant farmers (“sharecroppers”) into an ever-tightening cycle of debt. While the majority of black Americans in the South resided in rural areas, they did not own the land they worked. Most often they rented it from large landowners or worked as farm laborers. Bad crop years, boll weevil at tacks, floods, or low crop prices often destroyed profit mar gins and left sharecroppers in debt to the landlord. In order to avoid imprisonment, they agreed to work additional years in hopes of paying off their debts. Unfortunately, profits rarely were large enough to wipe out their obligations and Afro-Americans found themselves bound to the landlord who owned their land or controlled the local store where they purchased goods on credit. Migrating offered a chance to escape the oppressiveness of the South and begin anew. Problems of leave-taking Leaving, however, was not a simple matter for black Americans. It should be remembered that Afro-Americans had strong ties to the South and migrating meant severing lifelong friendships and strong family bonds. Migrants rarely left in large groups. Sometimes, members of families might leave together, but more often individuals left alone. They usually departed with the expectation that they would return or would send for loved ones, but migrating always involved leaving behind loved ones for an uncertain future. If aged parents or a spouse and children had to remain behind, the decision to move became even more compli cated. Migrating North also meant leaving familiar surroundings and community institutions which provided support in times of need. Church activities, social clubs, and fraternal orga nizations were part of a vibrant Afro-American community in the South which provided a buffer from the indignities faced in the outside community. For many Afro-Americans, this private community offered enough support to make their lives tolerable despite hardships. While hundreds of thousands of Afro-Americans chose to leave the South, many more remained behind or returned home after visiting northern cities. Once a decision to depart was made, leaving was often a https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis complicated process. Southern officials tried to slow the tide of migration by arresting or detaining Afro-Americans who tried to leave. Local police regularly searched departing trains for people they thought might be heading North. To escape police scrutiny, many migrants had to steal away late at night or devise elaborate plans to get away safely. These subterfuges forced the migrants either to sell their property and belongings secretly or to take with them only what they could carry. Most migrants were working people who did not possess great wealth and leaving under these circum stances hurt them financially. Items left behind or given away brought in no money and buyers rarely gave full value for items they knew the owner had to sell. Many migrants, therefore, did not have enough money with them to tide them over for long periods of time once they reached the North. Consequently, finding a job became a high priority as soon as they arrived. Northern lure One of the key factors influencing the individuals who did leave was the letters and visits they received from friends and relatives who had already moved North. Prior to World War I, Afro-Americans had moved North in small numbers but their economic opportunities had been severely limited. When the war changed the job markets, earlier migrants wrote letters home, urging others to come North. Also, when they traveled South to visit family on special occa sions, they reinforced their letters with personal accounts of their own successes and the advantage of living outside the South. These letters and visits must have whet the appetites of Afro-American Southerners already discontent with their lot and determined to do something about it. Many oral interviews with and reminiscences of migrants include pas sages describing how they decided to leave after hearing about opportunities in the North from relatives or friends who had lived or worked there. Having someone to live with or a clear idea of where jobs were located undoubtedly removed some of the uncertainty of leaving. While job opportunities were readily available in most cities, these jobs were at the lower end of the occupational ladder. Northern labor unions generally did not accept AfroAmericans as members and often threatened to strike com panies where nonunion workers performed union jobs. Even when Afro-American workers acquired better paying jobs during the war, many of them had to relinquish these jobs once the war ended. Types of jobs Afro-Americans typically wound up in dirty, backbreak ing, unskilled, and low-paying occupations. These were the least desirable jobs in most industries, but the ones employ ers felt best suited their black workers. On average, more than eight of every ten Afro-American men worked as un skilled laborers in foundries, in the building trades, in meat packing companies, on the railroads, or as servants, porters, 35 MONTHLY LABOR REVIEW March 1987 • The Great Migration o f Afro-Americans janitors, cooks, and cleaners. Only a relatively few obtained work in semiskilled or skilled occupations. Occupational choices for black women were even more limited because few of them, in concordance with women in general, had access to industrial jobs. While some women found employment in the garment industry, packing houses, and steam laundries, the majority of Afro-American women worked as domestic servants or in service-related occupa tions. While none of these jobs paid high wages, they paid more than Afro-Americans could obtain for similar work in the South. However, the cost of living in the North was higher than in the South. Funneled into certain areas in most northern cities, Afro-Americans have paid nearly twice as much as their white counterparts for equivalent housing. Higher rents made it harder for them to make housing payments and encouraged migrants to take in boarders or other family members to help meet expenses. While the extra income eased financial problems, it resulted in overcrowded living conditions, little privacy, and poor sanitation. With the ad ditional financial burden of having to pay higher prices in neighborhood stores for food, clothing, and other necessi ties, settling in the North was a mixed experience for many migrants. Though they earned better wages in the North, much of the increased income was offset by higher living expenses. More than economics Economic gain was not the sole reason migrants came North. Better educational opportunities and greater personal freedom were also motivating factors. Up to the time of the migration, Afro-American children rarely advanced past the sixth grade in the South. “Black” schools received very little money from southern legislatures, especially at the second ary level, and landlords placed pressure on parents to put their children to work rather than have them further their education. Under these circumstances, only a relatively few children were able to receive a high school or college educa tion. In contrast, northern States allocated more money for education and had compulsory attendance requirements that forced students to stay in school longer. Moving North gave 36 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis migrants and their children access to better educational op portunities and a chance for a brighter future. Another variable that made northern life attractive was the sense of personal freedom migrants felt after leaving the South. Northern cities were busy and impersonal; they of fered greater anonymity than Afro-Americans had experi enced in southern rural communities. Once they reached the North, migrants did not have to show deference to each white person they passed on the street. They could move about the city without the fear that the wrong word or tone or action might result in arrest or a more severe or even violent white response. These new social and political cir cumstances lifted a heavy burden from the migrants, many of whom had previously lived in a state of constant fear for their lives and those of their loved ones. world then , which migrants found in northern cities did not always correspond with their expectations. Despite the encouragements of newpapers like the Chicago De fender, migrants were not always welcomed by residents of the northern cities. Both black and white urban residents worried about the impact of so many new people and, on occasion, they sought to discourage migrants from coming. Although not as virulent as it was in the South, racial dis crimination also existed in northern cities. And while work was available, it usually was at the bottom of the pay scale and the occupational pecking order. Housing options and higher prices presented additional adjustment problems for the migrants. As a consequence, moving North was not a panacea for the many troubles migrants faced in the South. Northern urban areas presented their own set of problems and adjustments for migrants once they reached their new destinations. Despite these difficulties, Afro-Americans continued to migrate North and to stay. With the many adjustments mi grants faced, strange environments, new neighbors, and different ways of behaving and dressing, most found north ern cities more engaging than the places they left behind. Though many migrants returned South regularly and refer red to it as “home,” they did not remain. The South appeared to hold their hearts, but the North held their futures. □ T he Foreign Labor Developments Italian labor relations: a system in transition T iz ia n o T r e u The mid-1970’s marked a turning point in Italy’s industrial relations system. At that time, the system appeared to be a case of pluralism, recognized and supported by the statute of workers’ rights (Act 300/1970). The main aspects and insti tutions of industrial relations remained outside the legal regulation. In fact, trade unions and employers’ associations exercised joint power. Trade unions reasoned that the regis tration procedure prescribed by article 39 of the Constitution could lead to more state interference in internal union affairs than the Constitution intended. There were no specific legal provisions concerning the procedure, scope, unit, or content of bargaining or the conduct expected of the parties to nego tiations. Collective agreements were treated as contracts, binding only on the parties, although the courts indirectly extended collective wage rates to employees and employers who were not parties to the negotiations. In addition, no statutory regulation on work stoppages based on provisions of article 40 was passed, and the task of imposing limits on industrial conflict was again left to the courts. The statute of workers’ rights (Act 300/1970), which is still the fundamental source of law governing collective labor relations, marked a change of attitude towards orga nized labor, both regarding the consitutional approach of article 39 of the Constitution and the actual “abstentionism” of the 1950’s and 1960’s. The act intervenes not to regulate unions at the national level but to promote their presence and action at the plant level. The focus of the act is no longer on the recognition of unions and the extension of collective agreements, but on the basic rights granted to the most representative unions and workers for the promotion of union activity and collective bargaining in the workplace (usually enterprises with 15 employees or more). The most representative unions and union representatives were granted the time and the right to hold meetings on company prem- Tiziano Treu is full professor o f labor law at the University of Pavia (Italy) and president o f the Italian Industrial Relations Association. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ises, employee time off for union activities, checkoffs, and special protection against discrimination. Legislative support, a favorable labor market, and politi cal conditions of the late 1960’s contributed to the develop ment of unionization1 (from its lowest level of 22 percent in the mid-1960’s to more than 50 percent in the mid-1970’s) and collective bargaining. Individual labor law favored this approach, with minimum legal conditions providing a safety net for marginal employees, and nationwide and enter prisewide collective bargaining regulating wages and work ing conditions for the majority of employees. It is estimated that in the mid-1970’s, more than 75 percent of factory employees were covered by collective agreements. Some features of individual labor law are more effective in sup porting collective action. These include the protection of employees against discrimination and unfair dismissal con tained in the statute of workers’ rights; restrictions imposed by the act on employers’ directive and disciplinary powers; and Social Security legislation which provides more than 80 percent of the wages lost by employees who are laid off or employed on a short-term basis because of production difficulties or restructuring in the enterprise. Social Security legislation departs from that of the 1950’s and 1960’s and responds to the new problems of an industrial system which faces difficulties and changes. The pressure for change came in the mid-1970’s during the serious economic crisis and consequent technological transformation which affected the socioeconomic system of most developed countries. Italian industrial relations were built on the assumption that the economic system was capable of continuous and predictable growth within a relatively stable organization and technology. Collective bargaining, like unionization, was expected to expand much in the same way. Some schol ars assumed that a stable environment would bring about stability and convergence in labor-management relations practices. In the late 1970’s, a series of events called these assump tions into question: (1) the general slowdown of economic growth; (2) the growing uncertainty of domestic and interna tional markets’ (3) the rapid technological innovations re quiring or allowing changes in production or organization which might undermine collective bargaining; (4) the 37 MONTHLY LABOR REVIEW March 1987 • Foreign Labor Developments changing nature of labor (white-collar and service em ployees) which is less inclined to accept traditional forms of unionization and easier to organize; and (5) the growing initiative of management in industrial relations and person nel practices. Difficulties in the Italian system were heightened by the structural weakness of industry and fragmentation of the economy and the inefficiency of public administration. Po litical tensions and polarization among the two major polit ical parties (Christian Democrats and Communists) dimin ished the effectiveness and stabilizing capacity of state intervention in industrial relations and also undermined the internal cohesiveness of trade unions, thereby contributing to further reducing their bargaining power. Signs of changed attitudes and strategies first emerged at the macro level of industrial relations. Participants acknowl edged that the crucial problems of the period— recovery of the economy and international competitiveness, control of inflation (more than 20 percent in 1977 and again in 1982) and a reduction in unemployment— could not be solved without a more consensual, less conflictual attitude. The adjustment process was long and difficult and culmi nated in three major trilateral agreements in 1977, 1983, and 1984 between the top organizations of the social partners and the government. The underlying pattern was similar to that of other coun tries, even as early as the 1960’s and 1970’s, commonly referred to as “concertation” or neocorporatism in industrial relations. The terms of the economic and political tradeoff between the parties varied in the three agreements, but all implied a clear shift away from traditional economic and acquisitive collective bargaining. The trade unions accepted a slowdown of economic gains— mainly wage indexation (—18 percent in 1983 and - 3 0 percent in 1984), which stopped or slightly reversed real wage growth— and com mitted themselves to greater labor flexibility and control over decentralized bargaining and conflict. In exchange, the government granted tax benefits, particularly for low-paid workers, and made the following commitments: to control public expenditures and administer prices consistent with curbing inflation;2 to enact a series of measures to promote employment and to favor union participation in labor market policies and,with the employers’ consent, the union’s role in controlling industrial restructuring and innovation proc esses; to promote workers’ participation in capital formation through a solidarity fund (financed by 0.5 percent of wages controlled by the unions). A reduction of working time was agreed upon with the employers as a means of combatting growing unemployment. This latter directive has been im plemented unevenly, depending on the sector (usually 40 hours yearly on an average 40-hour workweek). These experiences of broad trilateral agreement and social neocorporatism have proved only partly successful. Schol ars have indicated that the Italian system lacks elements which account for the success and stability of neocorpo 38 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ratism: a united labor movement linked to a political labor government, a strong tradition of centralization in industrial relations, and an efficient government capable of imple menting the difficult long-term promises of the political tradeoff. Some functional equivalents of these elements have been operating in Italy: unity of action among the three major confederations, growing political and ideological control by the central confederation over the rank and file and middle-level union officers in order to respect social commitments, and a coalition government inclined to decide labor matters jointly with the Communists or with Commu nist consent only. The effectiveness of these factors has proved precarious, and political tensions exist between the Communists and the coalition government. In fact, the agreements of 1977 and 1983 were unanimously supported by the trade unions, whereas the 1984 round ended in disagreement and the most serious split within the labor movement since the 1950’s. The Communist-dominated confederation ( c g il ) withdrew from the negotiations and opposed the decree which the government issued to implement some points of the agree ment (mainly the slowing down of indexation) reached with the other two unions ( c is l and u il ) and the employers’ association. The government-issued decree represents a step towards direct legal intervention in crucial bargaining matters, and an exceptional alteration of the unwritten rule that any major legislation in labor matters needs the largely unanimous consent of the trade union movement (including the Com munist sector). This rule has been in effect since the 1950’s (no major labor law has been passed in the face of Commu nist opposition) and had made up for the exclusion of the Communist Party from national government.3 The arrange ment was an imperfect functional equivalent of the prolabor government usually held to be necessary for corporatism to work, and it presupposed a tacit division of roles with the Christian Democrats running the state (together with minor allied parties) and the Communists having a veto or power of codecision on labor matters (and sharing in local govern ment). As with many other major directives of Italian industrial relations, it remains to be seen just how exceptional this decision by decree will be. In mid-1985, top negotiations resumed between the three major confederations (United) and the central employer associations; this led to another agreement further sectoring and stabilizing the escalator clause first for the public sector, then extended to the private sector. The agreement represents a continuation, although partial, of the policy of “concertation” adopted in the past years. □ ---------- FOOTNOTES---------1 Organized labor in Italy is traditionally divided into three major confed erations based on ideological and political lines: the c g il , majority Com- munists, minority socialists: 4,570,000 members in 1983; the c is l , tradi tionally grouping Catholic workers and linked to the Christian Democratic party in recent years, with a growing number of politically noncommitted workers (3,005,000 members); and the uiL-socialists, minority social democrats, and republicans (1,300,000 members). 2 That is, within the maximum inflation targets (set in the 1983 agree ment) o f 13 percent in 1983, 10 percent in 1984, and 7 percent in 1985. 3 Indeed, this is the major argument used by scholars and courts claiming that these decrees are unconstitutional in that they militate against the principle o f trade unions’ freedom of negotiation by substantially altering the functioning o f a previously negotiated system of indexation without the full consent o f the parties involved. Those who defend the constitutionality o f the decree point out that under Decision 142 of 1980, the court should reject these objections. They maintain that while union consent is a condi tion o f effectiveness, it does not constitute a necessary or sufficient condi tion o f legitimacy. How are Japanese unions responding to microelectronics-based automation? W il l ia m E arle K lay Japan, a world leader in the development and production of electronics technology, is now attempting to transform itself into an “information society”— one in which virtually all social institutions fully utilize, and are profoundly affected by, computer-based technology.1 Not surprisingly, the growing impact of microelectronics-based automation is causing widespread concern among Japanese unions. Rather than dealing piecemeal with the many effects of the new programmable automation technology, they are developing multiple, integrated strategies which include an increased emphasis upon contractual protections and a desire to as sume a role of international leadership. Japanese unions do not oppose the introduction of the technology, but they are greatly concerned about the possi ble adverse effects that microelectronics could have on workers. Of the 554 unions surveyed by the Japan Institute of Labor, 53.6 percent of the unions said they were “in favor as a rule” toward the adoption of the technology while only 2 percent were “opposed as a rule,” and 36.6 percent said it was “unavoidable.” More than half of the unions said that they had already conducted some sort of negotiations about microelectronics technology issues, and most union leaders expected the technology to spread rapidly. Anticipating the automation of offices as well as factories, the unions said that the “growth of surplus labor” would be the greatest problem in both the manufacturing and clerical sectors.2 In Japan, there are four major nationwide organizations of labor unions, commonly known as national centers. These are: Sohyo (General Council of Trade Unions of Japan), Domei (Japanese Confederation of Labor), Churitsuroren (National Federation of Independent Unions of Japan), and William Earle Klay is an associate professor in the Department of Public Administration, Florida State University. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Shinsanbetsu (Federation of Independent Unions of Japan). All four national centers have adopted written guidelines related to microelectronics-based technology, with those of Domei, Sohyo, and Churitsuroren being particularly broad in scope.3 These guidelines generally promote a continuation of the policies established in the landmark written agreement of March 1, 1983, between the Nissan Motor Workers’ Union and the Nissan Motor Co., previously cited in the Review.4 The provisions of that agreement included a commitment to consultations between union and management in advance of introducing new technologies into the workplace; job and wage protection through the renouncement of layoffs, dis missals, or downgrading of positions; an employer commit ment to provide necessary training and education; and pro tections for safety and health. It is now evident, however, that many Japanese union leaders consider that agreement to be only a beginning. Domei, the national center with the largest number of private sector workers, has agreed upon specific action guidelines to be implemented or negotiated at each enter prise, industrial, subnational, national, and international level. While stressing the importance of predecision joint consultations and consensus building at all levels, Domei calls for the negotiation of a labor-management agreement on technological innovation in each enterprise. All of its action guidelines are based upon five “basic principles:” • “Progress of Human Society and Acknowledgment of Welfare.” The intent of this principle is to assure that the new technology serves social and economic progress, and that it promotes general welfare for all of society. • “Establishment of Principle of Assessment.” The princi ple of assessment is that the impact of technology on the worker is to be assessed prior to the introduction of mi croelectronic equipment into the workplace, and that nec essary policies to ease the transition are to be decided in advance. • “Securing Social Equity.” Domei is concerned that the benefits of microelectronics-based technology might not be fully shared with workers and that the technology might “widen the gaps among workers, industries, and regions,” not merely within Japan, but among nations as well. It is, therefore, “essential to establish a rule of dis tributing the fruits of technological innovation equitably.” • “Improvement in Worker’s Participation and LabourManagement Consultation.” Arguing that the new tech nology deeply affects not only the employment relation ship, but all of society, Domei says it is essential to the building of “a public consensus” that labor-management consultation on these issues become a universal practice and that worker representation be included in setting the directions for national science and technology policy. • “Establishment of International Cooperation.” Realizing that Japan’s economic success is causing stress among its 39 MONTHLY LABOR REVIEW March 1987 • Foreign Labor Developments major industrial competitors, Domei is concerned that “the advancement of the m e [microelectronics] revolu tion” might isolate Japan from the rest of the world. Therefore, . .it is vital that Japan, where m e [mi croelectronic] equipment is being introduced more rapidly than anywhere else, should take the initiative for establishing international cooperation.” Domei calls for the establishment of a new national quadripartite organization, including labor and public inter est representation as well as government and management, to set the basic directions for Japan’s science and technology policy. It also plans to promote the adoption of international fair labor standards which would, Domei hopes, be based upon principles such as the ones it has adopted. At the national level, Domei calls for a major research institute devoted solely to the prior assessment of problems associ ated with the implementation of microelectronics-based technology. At the enterprise level, Domei intends to negotiate com pulsory prior consultation beginning with the planning and designing stages. Specific objectives include increased in comes and shorter working hours, employment stability, and employer provided training opportunities through an inhouse “lifelong vocational training system.” Particular emphasis is placed upon the protection of opportunities for women and older workers. Even though it is not a common practice for Japanese employers to impose layoffs, unions are clearly concerned that the new technology might cause this to eventually hap pen. Denki Roren, the Japanese Federation of Electrical Machine Workers’ Unions, has developed guidelines and a model agreement covering the introduction of microelec tronic systems. It states, “Where there would be a direct impact on employment through personnel reductions, the union should express opposition to the entire concept of microelectronic technology and prevent the company from implementing its plans.”5 All of the national centers are concerned about the protec tion of safety and health and the stresses associated with working long hours at video display terminals, as well as with robots, which have caused fatal accidents on rare occa sions. The survey of the Japan Institute of Labor, mentioned above, revealed that microelectronics-related safety and hy giene issues have invoked intensified negotiations. Unions are concerned that the introduction of machine-regulated working conditions would be especially stressful to workers. In this regard, Sohyo’s guidelines are the most stringent. This national center, with by far the largest number of public employees in its ranks, fears that unrestricted use of mi croelectronics technology could cause increased authoritari anism and invasions of privacy. Sohyo recognizes that man agement has a need to gather information to monitor the overall speed and status of work that is being performed but, at the same time, Sohyo wants to prevent such computer 40 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis generated information from being used in personnel deci sions about the performance and pay of any individual em ployee. Its guidelines, therefore, call for the prohibition of management’s use of computer monitoring to oversee and evaluate the performance of individual workers. It also re jects the practice of pay differentials based on individual differences in ability to work at a computer. Sohyo’s policy is that any use of computer-generated data about an individ ual requires prior approval of the individual and the labor union. From an international perspective, the most problematic aspect of microelectronics technology is its potential to re place labor. Japanese unions recognize that this potential, one that might be realized sooner in Japan than in any other country, could jeopardize employment opportunities in that country. At the same time, they realize that rapid adoption of the technology in Japan could undermine the economies and employment of other nations, especially in less devel oped countries where labor intensiveness is an important element of international competitiveness. To avert unem ployment in Japan, they are actively promoting economic expansion, especially through labor-management coopera tion, to assure a flexible and motivated work force. Domei’s guidelines, for example, call for the achievement of sus tained real growth of 5 percent in the Japanese economy. Whether Japanese unions can successfully follow a dual policy of averting domestic unemployment through the pro motion of economic expansion and, at the same time, promote the international adoption of labor standards to avert such unemployment in other countries, remains to be seen. □ ---------- FOOTNOTES--------1 See Report of the General Policy Committee of the Social Policy Council, The Information Society and Human Life (Tokyo, Social Policy Bureau, Economic Planning Agency of the Japanese Government, March 31, 1983); also, Yonenji Masuda, The Information Society as PostIndustrial Society (Tokyo, Institute for the Information Society, 1980), printed in the United States by the World Future Society, Bethesda, m d . 2 Microelectronics and the Response of Labor Unions (Tokyo, Japan Institute of Labor, March 1984), tables 9 and 26. 3 “Sohyo’s Guidelines in the Interest of Regulating v d t Labor,” Inochi [Life] (Tokyo, Sohyo, July 1985) (in Japanese); “Harmony Between New Technology and Mankind— Dom ei’s Position to m e Revolution” (Tokyo, Domei, January 1985); “Employment Questions Accompanying m e Based Transformation: Towards Symmetry (A Proposal)” (Tokyo, Churitsuroren, September 1983) (in Japanese); “ v d t Guidelines,” Activity Policies for 1985-86 (Tokyo, Shinsanbetsu, adopted at 35th Regular National Conven tion, July 1984) (in Japanese). 4 Steven Deutsch, “International experiences with change,” Monthly Labor Review, March 1986, p. 39. technological 5 Denki Roren, “Guidelines for Securing Employment and Achieving Humane Working Conditions in the Microelectronics Era” (Tokyo, Japanese Federation of Electrical Machine Workers’ Unions, 1985), p. 15. The use of such emphatic language is a signal to management that union leaders’ concerns must be viewed seriously, for it implies the ultimate sanction o f a work stoppage, something which both sides usually strive hard to avoid. M ajor Agreements Expiring Next M onth This list of selected collective bargaining agreements expiring in April is based on information collected by the Bureau’s Office of Wages and Industrial Relations. The list includes agreements covering 1,000 workers or more. Private industry is arranged in order of Standard Industrial Classification. Industry or activity Em ployer and location L abor organization1 N um ber of workers Associated General Contractors (Hartford, ct ) ............................................ Associated General Contractors (Columbus, oh ) ....................................... Associated General Contractors (Dayton, oh ) .............................................. Associated General Contractors (Denver, c o ) .............................................. Associated General Contractors o f Colorado (Colorado) ......................... Associated General Contractors, Building Chapter (Colorado) .............. Associated General Contractors (Marquette, M i) .......................................... Associated General Contractors and one other (C onnecticut)................... Associated General Contractors (C o lo ra d o )................................................... Associated Contractors o f Essex County (New Jersey) ............................ Building Contractors Association (New Jersey) .......................................... Building Contractors Association (New Jersey) .......................................... Building Contractors o f Southern N ew Jersey (N ew Jersey) ................... Construction Employers Association (Cleveland, oh ) .............................. Construction Contractors Association (Cleveland, O H ).............................. Independent Contractors (C olorad o)................................................................. Mason Contractors Association (Cleveland, O H ).......................................... Minneapolis/St. Paul Building Contractors (M in n esota)............................ National Electrical Contractors Association, Inc. (Washington, DC) . . . National Electrical Contractors Association, Inc. Nassau-Suffolk Chapter (New York) National Electrical Contractors Association, Inc. (Minneapolis, MN) North Texas Contractors Association ( T e x a s ) .............................................. North Texas Contractors Association ( T e x a s ) .............................................. Pipe Line Contractors Association (Interstate) ............................................ Twin Cities Piping Industry Association (Minneapolis-St. Paul, MN) . . Nestle C o., Inc. (Fulton, n y ) ............................................................................ L a b o rers................................................... L ab orers................................................... L a b o rers................................................... Carpenters .............................................. Carpenters .............................................. L a b o rers................................................... Carpenters .............................................. Operating Engineers ............................ Iron Workers .......................................... Carpenters .............................................. L a b o rers................................................... Carpenters .............................................. Carpenters .............................................. Carpenters .............................................. Painters ................................................... Operating Engineers ............................ B rick layers.............................................. Plumbers ................................................ Electrical Workers ( ibew ) ................... Electrical Workers ( ibew ) .................. 5,000 1,700 1,000 4,150 1,500 3,100 1,000 3,000 1,050 1,850 12,500 14,000 2,200 4,000 1,250 2,500 1,200 1,350 2,200 1,400 Electrical Workers (ibew ) .................. 1,700 L a b o rers................................................... Carpenters .............................................. Plumbers ................................................ Plumbers ................................................ Retail, W holesale Department Store Teamsters (Ind.) ................................... Paperworkers .......................................... W oodw orkers.......................................... Leather Goods, Plastic and Novelty Workers Flint Glass Workers ............................ Glass, Pottery, Plastics and Allied Workers Boilermakers .......................................... Glass, Pottery, Plastics and Allied Workers Auto Workers ....................................... D iesel Workers’ Union ( I n d .) ............ Electrical Workers (IBEW).................. Electrical Workers (ibew ) ................... Plumbers ................................................ Utility Co-Workers Association (Ind.) Electrical Workers ( ibew ) ................... Food and Commercial Workers . . . . 2,000 1,500 5,000 1,450 1,000 Private C onstruction.......................................... Food products ..................................... Paper ..................................................... L ea th er................................................... Stone, clay, and glass products . .. Gentry-Foremost and two others (Salinas, CA) ............................................ Consolidated Papers, Inc., Consoweld Corp. (W isco n sin )....................... Boise Cascade Co. (International Falls, M N )................................................ New York Industrial Council o f the National Handbag Association (New York) Glass Container Industrial Relations Council (Interstate) ......................... Owens-Illinois, Inc. (Interstate) ........................................................................ Lone Star Industries Inc. (Interstate) .............................................................. Diamond Bathurst (Interstate)............................................................................ Primary m e ta ls ..................................... Machinery ............................................ Electrical p rod u cts.............................. Utilities ................................................. Wholesale tr a d e ................................... Retail trade .......................................... H o te ls ..................................................... Mueller Brass Co. (Port Huron, mi) .............................................................. Cummins Engine Co. (Columbus, in ) ............................................................ Zenith Radio Corp., Rauland D ivision (Melrose Park, il ) ....................... Public Service Electric and Gas Co. (New J e r s e y )..................................... Public Service Electric and Gas Co. (New J e r s e y )..................................... Public Service Electric and Gas Co. (New J e r s e y )..................................... Arizona Public Service Co. (Arizona) ............................................................ Greater New York Association o f Meat and Poultry Dealers (New York, n y ) Shoprite, Pathmark, Grand Union, Foodtown, and others (Interstate) . Kroger (Dallas-Ft. Worth, TX) .......................................................................... Colonial Stores Inc. (South Carolina, North C arolin a).............................. Nevada Resort Association (Las Vegas, n v ) ................................................ Food and Commercial Workers . . . . Food and Commercial Workers . . . . Food and Commercial Workers . . . . Operating Engineers; Teamsters (Ind.) 1,400 2,600 1,300 4,000 3,500 7,000 1,200 7,000 1,000 5,500 1,550 4,450 1,450 1,400 2,800 2,100 21,000 5,000 1,500 3,500 Public Social s e r v ic e s ..................................... 1Affiliated Ohio: Cuyahoga County welfare departm ent................................................ with AFL-CIO except where noted as independent (Ind.). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis State, County and Municipal Employees 1,000 Developments in Industrial Relations twa pilots extend current contract At Trans World Airlines ( t w a ) , 3,000 pilots agreed to extend their current agreement by 3 years, to January 1992. During the agreement term, they will receive three 5-percent pay increases, nearly restoring pay to the same level as in 1985 when the pilots took a 22-percent cut, which was partly offset by profit-sharing and stock plans that will be continued during the extension period. They had agreed to the cut to help financier Carl C. Icahn’s efforts to thwart a purchase bid by Frank Lorenzo, head of nonunion Texas Air Corp. The pilots are represented by the Air Line Pilots Association. In January 1989, the pilots’ pay would have automatically reverted to the 1985 level if they had not agreed to the extension. In return for the extension, Icahn agreed that any sales of assets will not exceed operating losses. Under the 1985 accord, Icahn had the right to sell unlimited assets if the carrier lost money. The extension accord also includes additional job protection for pilots affected by sales of assets. Other provisions include full restoration of a cut in paid vacation negotiated in 1985, and an increase to 2 years (from 1 year) in the period during which pilots are prohib ited from bidding for work on different equipment. Meanwhile, members of the Machinists union, who had accepted cuts similar to Air Line Pilots Association mem bers in 1985, were continuing to resist t w a ’ s requests for negotiations on an extension agreement. In a related development, t w a pilots voted to merge se niority lists with 425 Air Line Pilots Association members at Ozark Airlines, which was acquired by t w a in 1986. According to a union official, the Ozark pilots were ex pected to approve the merger of seniority lists, even though coverage by the t w a contract will result in a 25-percent pay cut for them. The Independent Federation of Flight Attendants, which lost a strike against t w a (see Monthly Labor Review July 1986, p. 48) but still represents the 4,000 strikers and re placements, was seeking National Mediation Board recogni- “ D e v e lo p m e n ts in Industrial R e la tio n s ” is prepared b y G e o r g e R u b en o f the D iv is io n o f D e v e lo p m e n ts in L a b o r-M a n a g em en t R e la tio n s, B ureau o f L ab or S ta tis tic s , and is la r g e ly b a sed on in fo rm a tio n from seco n d a ry so u r ces. 42 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis tion as sole bargaining representative for all t w a attendants, while the Association of Flight Attendants, which repre sented the 700 Ozark attendants, was petitioning the Board to hold a representation election for all t w a attendants. Elsewhere in the industry, 650 pilots employed by the Flying Tiger Line cargo unit of Tiger International Inc. agreed to a 3^-year contract calling for a 25-percent pay cut. Prior to the settlement, the pilots’ pay had averaged $117,000 a year. The parties also established a two-tier pay system under which new employees will be paid less than those already on the payroll. The unit, which reported a $55.5 million loss during the latest 9-month period, has been hurt by a recent increase in trans-Pacific cargo flights by other carriers. In return for these changes and cuts in supplemental pen sions and other benefits, the pilots will share in the unit’s profits and were allotted a seat on the unit’s 11-member board of directors. Kroger workers forgo bonus plan to save jobs Employees of 40 Kroger Co. stores in Southwestern Vir ginia and Tennessee accepted a wage cut, averting the planned closing of 13 of the stores. In proposing the closing, Kroger had called for a wage freeze and a new bonus system at the stores that would have remained open, but the mem bers of United Food and Commercial Workers ( u f c w ) Local 278 chose to forgo the bonus plan and take the pay cut to save the jobs at the stores scheduled to close. The pay cut was $1 an hour for top-rated grocery clerks, who formerly earned $9.71, and 90 cents for meat depart ment heads (formerly $11.43 to $11.74) and top-rated meatcutters (formerly $10.74). The cut will be partly restored when the 3,200 employees receive a 25-cent-an-hour pay increase in November 1987 and a 37-cent increase in November 1988. Another cost-reducing provision of the 34-month contract was elimination of various job classifications in the meat department, resulting in only a few groupings: full-time or part-time employees and department heads. Kroger also offered meatcutters inducements to quit their jobs by December 27, 1986: $12,000 for those with more than 12 years’ service and $10,000 for others. Similarly, all clerks at top pay rates (attained after 3 years’ service) were offered a $10,000 departure payment. Elsewhere, Kroger negotiated a pay cut with the u f c w for 2,500 employees of 28 stores in the Dayton, o h , area. The 36-cent-an-hour cut, to be accomplished in three 12-cent stages during the second half of the 3-year contract, applies only to top-rated clerks and meatcutters. Pay was frozen for all other employees. Prior to the settlement, top-rated clerks earned $10.14 in Dayton stores and $9.69 for nearby rural areas. For top-rated meatcutters, the respective rates were $11.90 and $11.40. Other terms included the elimination of four paid personal days off, leaving clerks with two such days and meatcutters with three, in addition to six regular paid holidays. Kroger said that the cost-reducing terms, were needed to aid the company in competing with discount stores and nonunion stores. Elsewhere in the industry, Jewel Food Stores and the u f c w negotiated a new contract that equalized pay rates for company employees in Northwest Indiana with those for its employees in the Chicago area. The 700 employees in Indi ana had been receiving $1.25 an hour less than the 16,300 Chicago employees. Other terms for the food clerks included a 35-cent in crease in their $10.90 hourly rate, followed by a 15-cent increase in October 1987, and a 25-cent increase in October 1988. General merchandise clerks received 35-, 20-, and 20-cent increases on the corresponding dates, bringing their rate to $9.75. Compensation increases for realty service workers In New York City, janitorial and other service employees of about 1,000 commercial buildings were covered by a settlement between the Realty Advisory Board of Labor Relations and Local 32B-32J of the Service Employees. The union said the terms were expected to be extended to “virtually all” of the major commercial buildings in the city, bringing the total number of covered employees to 30,000. The 3-year contract provides for annual wage increases totaling $62 a week, raising the average weekly rate to $471, according to the union. Other provisions included three annual $25 a month increases in pensions for future retirees, bringing the benefit to $500 for workers retiring at age 65 with 25 years of service; a $3 a week employer payment into an annuity fund beginning in the third year; doubling of major medical insurance coverage, to $1 mil lion; a $2,500 increase in life insurance, to $20,000; in creased dental and surgical benefits; and adoption of optical coverage for family members. Hawaiian nurses settle, avert strike A scheduled strike by nearly 1,800 registered nurses was averted when the Hawaii Nurses Association and five Hon olulu hospitals agreed on 3-year contracts. The reported 19-percent increase in compensation included wage in creases of 85 cents an hour in the first year and 50 cents each https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis in the second and third years. A union official said that the prior average wage rate was $12,425. The “charge nurse” differential was increased to 60 cents an hour, from 40, and the night shift differential was increased to 85 cents an hour, from 75. Benefit changes included pension improvements, bring ing the monthly benefit to $550 for nurses retiring after 30 years’ service; an increase in the hospitals’ financing of medical and dental insurance that apparently obviates the need for employee contributions during the contract term; a tuition reimbursement plan, financed by annual employer payments of $15,000 ($25,000 at Queen’s Medical Center); increased educational leave; and a requirement that nurses working two weekends in a row be paid time and one-half for the second weekend. The parties also agreed to include some 150 “flying nurses” in the bargaining unit. These nurses fly in from the U.S. mainland for temporary assignments to ease a shortage in Hawaii. In addition to Queens, the hospitals covered by the settle ment were St. Francis Hospital, Kapiolani Women’s and Children’s Medical Center, Kaiser Foundation Hospital, and Kuakini Medical Center. Parts workers pay guaranteed if plant closes In the automotive parts industry, Dana Corp. and the Auto Workers negotiated a 3-year contract that provided for lower than usual wage gains in return for improved income guarantees for workers affected by plant closings. At the beginning of the respective contract years, the 2,500 cov ered employees will receive lump-sum payments equal to 2, 2.25, and 2.25 percent of earnings during the preceding 12 months. They will also continue to receive automatic quar terly cost-of-living pay adjustments. Under the prior 3-year contract, employees received 3-percent specified wage in creases at the beginning of each contract year. The improvements in job security included increased company financing of Supplemental Unemployment Bene fits and a new $4 million fund to guarantee 1 year of pay continuation for workers losing their jobs because of plant closings. Other terms included retirement inducements of up to $10,000 and improved pension and insurance benefits. The contract covers plants in Ohio, Pennsylvania, Michigan, Illinois, and Indiana. High court rulings affect pregnant workers In a 6 to 3 decision, the Supreme Court upheld a Califor nia law requiring employers to provide unpaid pregnancy leave to employees. Writing for the majority, Justice Thurgood Marshall rejected arguments by business representa tives and the Reagan Administration that the California law violated provisions of the Federal Pregnancy Disability Act of 1978 requiring that pregnant employees be treated the 43 MONTHLY LABOR REVIEW March 1987 • Developments in Industrial Relations same as, but not better than, workers with other disabilities. According to the rejected arguments, it is discriminatory to require employers to provide leave for a pregnant employee when they are not required to provide leave for an employee with an injury or other disability. Justice Marshall said the intent of the 1978 act was not to limit benefits for pregnant women. Rather, he said, it was only “a floor beneath which pregnancy disability benefits may not drop— not a ceiling above which they may not rise.” Continuing, Justice Marshall said that while there was no intent to require States to give preferential treatment to pregnant employees, there also was no congressional intent to prohibit preferential treatment. Despite this permissive aspect of the Federal Act, Justice Marshall said the California law was narrowly drawn be cause it covers only the period of actual physical disability due to pregnancy or related medical conditions and does not require employers to pay employees during the leave period. Thus, Justice Marshall concluded, the “only benefit preg nant workers derive” from the law is a general right to reinstatement. In the minority opinion, Justice Byron R. White, writing for Chief Justice William H. Rehnquist and Justice Lewis F. Powell, said that the California law was in “square conflict” with the Pregnancy Disability Act because it required “every employer to have a disability leave policy for pregnancy even if it has none for any other disability.” In their opinion, this preferential treatment is “contrary to the mandate” of the Federal law. The case, California Federal Savings and Loan Associa tion v. Guerra, arose when Lillian Garland lost her recep tionist job at the firm after taking 3 months’ pregnancy leave. When State officials charged California Federal with violating the State law, the firm sued to have the law de clared invalid. In a related case, the Court held that Federal law permits States to deny unemployment benefits to women who give up their jobs because of pregnancy. The case, Wimberly v. Labor and Industrial Relations Commission o f Missouri, arose when Linda Wimberly, a cashier at a store in Kansas City, took a leave of absence in 1980 to have a baby. She asked to return a few months later, but was told that there were no jobs. Missouri officials then rejected her request for unemployment compensation, citing provisions of State law permitting benefit payments only for job losses resulting from work-related disabilities or an employer’s decision to lay off workers. In the 8 -0 decision, written by Justice Sandra Day O’Connor, the Court held that the Federal Unemployment 44 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Tax Act of 1976 requires that pregnant employees not be treated less favorably than fellow employees with other dis abilities, but also does not require that they be treated more favorably than fellow employees. Justice O’Connor said that, under Missouri law, “all persons who leave work for reasons not causally connected to the work or the employers are disqualified from receiving benefits.” Continuing, Jus tice O’Connor wrote, “to apply this law . . . all that is relevant is that she stopped work for a reason” that was not work related. Justice Harry Blackmun did not participate in the case. Only Vermont, Minnesota, North Dakota, and the Dis trict of Columbia have unemployment compensation laws as restrictive as those in Missouri. In most other States, women who cannot regain their jobs after pregnancy leave, then become eligible for unemployment benefits. Court rules on accommodating religious holidays The Supreme Court held that Federal law gives employers latitude in accommodating the religious beliefs of workers by changing work schedules and leave policies. Writing for the 8-member majority, Chief Justice William Rehnquist said that an employer must make a “reasonable” effort to accommodate a worker’s religious beliefs but need not ac cept the worker’s suggestions on how to attain the accom modations. The case arose when an Ansonia, c t , teacher requested permission to use three annual paid personal business days for religious holidays, although the labor contract specifi cally prohibited such use. The school maintained it had fulfilled its contractual obligation by giving the teacher three unpaid days off. (The employee’s three other annual reli gious holidays were covered by a provision giving all em ployees three paid days off for unspecified holidays of their choice.) In the suit, the teacher claimed that the school system had violated Title VII of the Civil Rights Act of 1964 which prohibits discrimination in employment on the basis of race, sex, or religion. In overruling the Federal court of appeals, the Supreme Court held that the lower court should have considered whether the school officials’ decision was reasonable, rather than finding that the teacher’s suggestion was valid because it did not impose “undue hardship” on the school system. In the majority opinion, the Justices said that the officials’ decision was, in fact, reasonable. Justices Thurgood Marshall and John Paul Stevens dis sented, in part, from the majority. □ Book Reviews Listen up, America! Trade Talks: America Better Listen! By C. Michael Aho and Jonathan David Aronson. New York, Council on For eign Relations, 1985. 178 pp. $8.95, paper. The morning papers in late September 1986 carried sto ries that identified five issues that the U.S. Trade Represen tative thought so important he would walk away from the talks if they were not on the table. These issues— agricul ture, services, intellectual property, foreign investment, and dispute settlement— provide much of the focus of C. Michael Aho and Jonathan David Aronson’s analysis. In general, this book demonstrates a high level of awareness of the issues, the processes of international negotiation, and the intricacies of foreign economic policymaking. After setting the admittedly challenging economic and political context for the latest series of trade negotiations, Aho and Aronson set ambitious goals for them in terms of higher economic growth and greater discipline. The second part of the book analyzes the national goals and constraints of the three major blocs in the negotiations— the United States, other industrial countries, and the developing coun tries. The concluding section outlines the authors’ view on negotiating strategy. The sections are of uniformly high quality; the chapters on goals, constraints, and internal pol icymaking of the major actors will be of value to anyone with a general interest in foreign trade policy. The successful pursuit of accessibility and generality in evitably left gaps which various specialists will clamor to fill. For example, because the focus of Trade Talks is indeed trade talks, the discussion of labor adjustment measures was perfunctory, and perhaps not in tune with the most current thinking. Aho and Aronson concentrate their analysis on the functioning of the Trade Adjustment Assistance Act and measures to stretch out the timeframes for adjustment in selected basic industrial sectors. By comparison, a task force set up by the U.S. Secretary of Labor on economic adjustment and worker dislocation is examining policies that apply to displaced workers from all sectors of the economy, with a view toward compressing the timeframe in which an individual can make a satisfactory adjustment to economic change. One result of this approach may be to lower the profile of adjustment policy as a constraint on trade negoti https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ations. Aho and Aronson state the problem faced by adjust ment policy very succinctly: “Trade does create new jobs— probably more than it destroys— but they are entirely different jobs, requiring entirely different skills.” However, they seem not to have looked closely at measures that are currently being considered to promote a more flexible, mo bile, and skilled labor force. Other, less important, misconceptions have been allowed to pass into the book. Because there is little space in a general work for detailed analysis of each and every issue, current cliches about the economy are often accepted at face value. In one case, the authors blandly assert that the pace of economic change is accelerating. This is one of the most unexamined propositions in circulation today. The scant statistical data that can be found to examine the hypothesis more closely turn out to contain a mass of contradictions. One particularly vivid example of the contrariness of the data is a table appearing in a recent business strategy text book that indicates that the number of new products devel oped by a sample of 44 large firms actually/«?// from 133 in 1961-65 to 75 in 1971-75. At the same time, however, the percentage of those new products being produced in foreign markets within 1 year of U.S. introduction rose from 24 to 39 percent. The authors also seem to tacitly accept the notion of a “declining industrial base” or the “deindustrialization” of the U.S. economy. Most of the evidence in favor of such an hypothesis is based on the kind of manufacturing employ ment data referenced briefly in the chapter, “Setting the Context.” It is true that in the medium term, factory employ ment has fallen; however, it takes only the simplest look at the data on growing manufacturing capacity or the continu ing uptrend in actual production to cast serious doubt on the notions of “declining base” or “deindustrialization.” It is a shame that in a book very likely to be read by the generalist policymaker, the authors could not find the space to outline more clearly ongoing debates about contextual assumptions. Aho and Aronson present some very interesting proposals for advancing international trade agreements. They make some very good points: Admit that trade, investment, mi gration, the international monetary system and so on are intimately related but that trying to put them all on one table at one time will lead to a hopeless snarl. The authors then advocate disaggregating the trade bargain. Another possibil45 MONTHLY LABOR REVIEW March 1987 • Book Renews ity that is not presented would be to disaggregate the nego tiations themselves. The General Agreement on Tariffs and Trade (gatt) could be retained as the framework for the issues concerning trade in industrial goods. The residuum of tariffs, nontariff barriers, and dispute resolution would be at the core of that round of talks. At the same time, new general arrangements could come into being where the trade-in-goods model has proved troublesome: for trade in services (including intellectual property), gats ; for trade in agriculture and commodities, gatac ; and so on. At the completion of the negotiations of these general arrange ments, preparations could begin for a technical round to coordinate the agreements. In the longer term, the adminis tration of the separate arrangements might, by further nego tiation, be consolidated into a single, broad, international trade organization, thus bringing the vision of the postwar Bretton Woods treatymakers full circle. — R ichard M. D evens , Jr . Division of Labor Force Statistics Bureau of Labor Statistics There are chapters on Federal, State, and local government roles, and also one on electric utilities. There appears to be no easy way for governments to correct for the flaws and failings of the private sector’s energy conservation deci sions. Private sector performance has also been uneven. For example, in a chapter on industrial conservation, the authors note that the cement industry has outperformed the steel industry in energy savings, although both industries have suffered from well-known problems in the last 12 years. I particularly appreciate The Brookings Institution’s prac tice of including commentaries on the essays by other ex perts, usually with different perspectives. The perspectives in this volume include a broad cross section of opinion. The volume provides some useful information for those govern ment employees who desire to promote conservation as well as intelligent commentary on the pressures that affect re source allocation in public organizations. This is an interest ing volume on political economy. — E dward A. S chroeder IV School of Administrative Science The University of Alabama in Huntsville Checks and balances Energy Conservation: Successes and Failures. Edited by John C. Sawhill and Richard Cotton. Washington, The Brookings Institution, 1986. 270 pp. $28.95, cloth; $10.95, paper. Have American energy conservation efforts since 1973 been successful? In terms of overall reductions in energy use per dollar of the gross national product, the answer is yes. Have government programs played a strong role in this success? While this book does not give a definitive answer to this question, it does present sufficient evidence to show that information is not yet available. There are some well-known reasons for doubting that purely private sector decisions on energy issues will always lead to desirable results for society. The authors consider the arguments for a public sector role in long-term research and development, in dealing with national security type exter nalities, and in the provision of information to consumers of energy. In general, the authors conclude that government activity is needed to assist the private sector markets in achieving greater efficiency. A chapter on the financial bar riers to conservation surveys the arguments of imperfections in the financial capital markets, and generally argues that these markets have worked reasonably well. The book does not offer much comfort to those who prefer allocation of resources by governmental decisions. Several of the essays discuss cases of poor public sector performances in choosing and implementing policies and making decisions, in failing to perform followup studies to evaluate programs and policies properly, and in terms of the absence of strong financial incentives for cost efficiency. 46 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Publications received Economic and social statistics Altonji, Joseph G. and Aloysius Siow, Testing the R esponse o f Consum ption to Incom e Changes with (N oisy) P anel D ata. Cambridge, m a , National Bureau of Economic Research, Inc. 1986, 43 pp. (Working Paper Series, 2012.) $2, paper. Banks, Vera J ., “Who Make Up the U.S. Farm Population?” Rural D evelopm ent P erspectives, October 1986, pp. 18-20. Freeman, Richard B. and Brian Hall, Perm anent H om elessness in A m eric a ? Cambridge, M A , National Bureau of Economic Re search, Inc., 1986, 38 pp. (Working Paper Series, 2013.) $2, paper. La Londe, Robert J., “Evaluating the Econometric Evaluations of Training Programs with Experimental Data,” The Am erican Econom ic R eview , September 1986, pp. 604-20. The Japan Institute of Labor, Japanese Working Life Profile: S tatistical A sp e c ts . Minato-ku, Tokyo, Japan, 1986, 80 pp. Industrial relations Chelius, James, ed., Current Issues in W orkers’ C om pen sation . Kalamazoo, m i , W. E. Upjohn Institute for Employment Re search, 1986, 372 pp. $19.95, cloth; $14.95, paper. Doeringer, Peter B., Philip I. Moss, and David G. Terkla, “Capitalism and Kinship: Do Institutions Matter in the Labor Market? Industrial and L abor R elations R eview , October 1986, pp. 48-60. Ichniowski, Casey, “The Effects of Grievance Activity on Produc tivity,” Industrial and L abor R elations R eview , October 1986, pp. 75-89. McGuiness, Kenneth C. and Jeffrey A. Norris, H ow to Take a C ase Before the n l r b . 5th ed. Washington, The Bureau of Na tional Affairs, Inc., 1986, 814 pp. $65. U.S. Department of Commerce Im plications o f Internationaliza Mishel, Lawrence, “The Structural Determinants of Union Bar gaining Power,” Industrial and L abor R elations R eview , Octo ber 1986, pp. 90-104. Department of Commerce, Office of Economic Affairs, 1986, 285 pp. Potter, Edward E., ed., Em ployee Selection: L egal and P ractical A lternatives to C om pliance and L itig a tio n . 2d ed. Washington, National Foundation for the Study of Equal Employment Policy, 1986, 330 pp. $19.75, paper. Rose, Joseph B., “Legislative Support for Multi-Employer Bar gaining: The Canadian Experience,” Industrial and L abor R ela tions R eview , October 1986, pp. 3-18. Sockell, Donna, “The Scope of Mandatory Bargaining: A Critique and a Proposal,” Industrial and L abor R elations R eview , Octo ber 1986, pp. 19-34. The Bureau of National Affairs, Inc., Affirm ative Action Today: A L egal and P ractical A nalysis; A ppendix. Washington, 1986, 172 and 92 pp., bibliography. $75. Williams, Robert E., P ersonal Liability o f M anagers and Supervi sors f o r Em ploym ent D iscrim in ation . 2d ed. Washington, Na tional Foundation for the Study of Equal Employment Policy, 1986, 56 pp. Industry and government organization Barnett, Donald F. and Robert W. Crandall, Up from the Ashes: The R ise o f the Steel M inim ill in the U nited States. Washington, The Brookings Institution, 1986, 135 pp. $26.95, cloth; $9.95, paper. tion o f the U.S. Econom y. (P roceedings o f a Workshop on Structural Change H eld January 14, 1986.) Washington, U.S. Labor force Allen, Steven G., Can Union L abor E ver C ost Less ? Cambridge, M A , National Bureau of Economic Research, Inc., 1986, 35 pp. (Working Paper Series, 2019.) $2, paper. Hertz, Rosanna, M ore Equal Than Others: Women and Men in D u al-C areer M arriages. Berkeley, University of California Press, 1986, 245 pp. $18.95. Hewlett, Sylvia Ann, Alice S. Ilchman, John J. Sweeney, eds., Fam ily and Work: B ridging the G ap. Cambridge, M A , Ballinger Publishing Co., 1986, 218 pp. $29.95. Sonnenstuhl, William J. and Harrison M. Trice, Strategies fo r E m ployee A ssistance P rogram s: The C rucial Balance. Ithaca, N Y , Cornell University, New York State School of Industrial and Labor Relations, 1986, 74 pp. (Key Issues Report, 30.) $7, paper. Waldinger, Roger D., Through the E ye o f the N eedle: Im m igrants and Enterprise in N ew York’s G arm ent Trades. New York, New York University, 1986, 231 pp. $35, Columbia University Press, New York. Management and organization theory Danzinger, James N. and Kenneth L. Kraemer, P eople and C om Ferris, James and Elizabeth Graddy, “Contracting Out: For What? With Whom?” P ublic A dm inistration R eview , July-August 1986, pp. 332-44. puters: The Im pacts o f Com puting on E nd U sers in O rganiza tions. New York, Columbia University Press, 1986, 268 Levy, Robert A. and James M. Jondrow, “The Adjustment of Employment to Technical Change in the Steel and Auto Indus tries,” The Journal o f Business, July 1986, pp. 475-91. Harrington, H. James, The Im provem ent P rocess: H ow A m erica’s Leading C om panies Im prove Q uality. New York, McGraw-Hill Book Co., 1987, 239 pp. $24.95. Murphy, Patrick V. and Wayne S. Watkins, “Rural America Ben efits from Airline Deregulation, but Less than Urban America,” R ural D evelopm ent P erspectives, October 1986, pp. 2-7. Monetary and fiscal policy U.S. Department of Commerce, The Service Econom y: O pportu nity, Threat or M yth? (P roceedings o f a Workshop on Structural Change H eld on Oct. 22, 1985.) Washington, U.S. Department of Commerce, Office of Economics Affairs, 1986, 155 pp. International economics pp. $32.50 Bosworth, Barry P., “Fiscal Fitness: Deficit Reduction and the Economy,” The Brookings R eview , Winter/Spring 1986, pp. 3-8. Kitchen, John and Frank Zahn, “Interest Rates, Farm Prices, and the U.S. Farm Sector,” R ural D evelopm ent P erspectives, Octo ber 1986, pp. 21-24. Bohi, Douglas R. and Michael A. Toman, “International Planning for Future Oil Crises,” Resources, Summer 1986, pp. 13-16. Wages and compensation Burre-Hagglund, Kaarina, ed., The Finnish N ational R eports to Akerlof, George A. and Lawrence F. Katz, D o D eferred W ages the Twelfth C ongress o f the International A cadem y o f C om par ative Law, H eld in Sydney and M elbourne, Australia, Aug. 1 8 -2 6 , 1986. Helsinki, Finland, University of Helsinki, Depart D om inate Involuntary Unem ploym ent as a W orker D iscipline D e v ic e ? Cambridge, M A , National Bureau of Economic Re ment of Comparative Law, 1986, 188 pp. Mills, D. Quinn, “Destructive Trade-Offs in U.S. Trade Policy,” H arvard Business R eview , November-December 1986, pp. 119-24. Organization for Economic Co-Operation and Development, o e c d Em ploym ent Outlook, 1 9 8 6 . Paris, France, 1986, 155 pp. $24. Available from OECD Publications and Information Center, Suite 1207, 1750 Pennsylvania Avenue n w , Washington 200064582. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis search, Inc., 1986, 46 pp. (Working Paper Series, 2025.) $2, paper. Dickens, William T. and Lawrence F. Katz, Interindustry W age Differences and Industry C haracteristics. Cambridge, M A , Na tional Bureau of Economic Research, Inc., 1986, 45 pp. (Work ing Paper Series, 2014.) $2, paper. Lazear, Edward P., “Salaries and Piece Rates,” The Journal o f Business, July 1986, pp. 405-31. New York State School of Industrial and Labor Relations, Flexible P ay System s: “Introduction,” by Harry C. Katz and George T. 47 MONTHLY LABOR REVIEW March 1987 • Book Reviews Milkovich; “The Promise of Gain Sharing,” by Robert B. McKersie; “Brother, Can You Share a Dime,” by Eugene Keilin, Joshua Gotbaum, and Ron Bloom; “Knowledge-based Pay: A Strategic Analysis,” by Ian V. Ziskin; “Two-Tier Compensation Plans,” by Stephen A. Ploscowe, ilr R eport, Fall 1986, pp. 4-28. National Bureau of Economic Research, Inc., 1986, 27 pp. (Working Paper Series, 1887.) $2, paper. Krueger, Alan B. and Lawrence H. Summers, Efficiency W ages and the W age Structure, Cambridge, M A , National Bureau of Economic Research, Inc., 1986, 37 pp. (Working Paper Series, 1952.) $2, paper. Cam bridge, m a , National Bureau of Economic Research, Inc., 1986, 38 pp. (Working Paper Series, 1968.) $2, paper. Schwartz, Saul, “Earnings Capacity and the Trend in Inequality Among Black Men,” The Journal o f Human R esources, Winter 1986, pp. 44-63. ----------- R eflections on the Inter-Industry W age Structure. Welfare programs and social insurance Bane, Mary Jo and David T. Ellwood, “Slipping Into and Out of Poverty: the Dynamics of Spells,” The Journal o f Human R e sources, Winter 1986, pp. 1-23. Bishop, John H. and Mark Montgomery, “Evidence on Firm Par ticipation in Employment Subsidy Programs,” Industrial R ela tions, Winter 1986, pp. 56-64. Chen, Yung-Ping and George F. Rohrlich, eds., Checks and B al ances in Social Security: Sym posium in H onor o f R obert J. M yers. Lanham, m d , University Press of America, Inc., 1986, 382 pp. $32.25, cloth; $17.50, paper. Fuchs, Victor R., The Fem inization o f P overty? Cambridge, M A , National Bureau of Economic Research, Inc., 1986, 22 pp. (Working Paper Series, 1934.) $2, paper. Ehrenberg, Ronald G., Richard P. Chaykowski, Randy A. Ehren berg, M erit P ay fo r School Superintendents? Cambridge, m a , National Bureau of Economic Research, Inc., 1986, 48 pp. (Working Paper Series, 1954.) $2, paper. Hamermesh, Daniel S. and John R. Wolfe, Com pensating W age D ifferentials and the D uration o f W age L oss. Cambridge, m a , Worker training and development Dickinson, Katherine P., Terry R. Johnson, Richard W. West, “An Analysis of the Impact of c e t a Programs on Participants’ Earnings,” The Journal o f Human Resources, Winter 1986, pp. 64-91. Great Britain, Department of Employment, “Postcards and Piers or Plums Ripe for Picking?” by Sean Gough, Em ploym ent G azette, August 1986, pp. 297-99. Prais, S. J. and Hilary Steedman, “Vocational Training in France and Britain: The Building Trades,” N ational Institute Econom ic R eview , May 1986, pp. 45-55. Seeberg, Irmtraud Streker, Michael C. Seeborg, Abera Zegeye, “Training and Labor Market Outcomes of Disadvantaged Blacks,” Industrial R e la tio n s , Winter 1986, pp. 33-44. □ A note on communications The Monthly Labor Review welcomes communications that supplement, challenge, or expand on research published in its pages. To be considered for publication, communications should be factual and analytical, not polemical in tone. Communications should be addressed to the Editor-inChief, Monthly Labor Review, Bureau of Labor Statistics, U.S. Depart ment of Labor, Washington, D C 20212. 48 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Current Labor Statistics S c h e d u le o f r e le a s e d a te s fo r m a jo r N o te s o n C u r r e n t L a b o r S ta tis tic s bls s ta tis tic a l s e r ie s ...................................................................................................... ................................................................................................................................................................... 50 51 C o m p a r a tiv e in d ic a to r s 1. Labor market indicators................................................................................................................................................................................................... 2. Annual and quarterly percent changes in compensation, prices, andproductivity .......................................................................................... 3. Alternative measures o f wage and compensation changes .................................................................................................................................... 60 61 61 L a b o r fo r c e d a ta 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. Employment status of the total population, data seasonally ad ju sted ................................................................................................................. Employment status of the civilian population, data seasonally adjusted ........................................................................................................... Selected employment indicators, data seasonally adjusted .................................... Selected unemployment indicators, data seasonally adjusted ............................................................................................................................... Unemployment rates by sex and age, data seasonally adjusted ........................................................................................................................... Unemployed persons by reason for unemployment, data seasonally a d ju sted ................................................................................................... Duration o f unemployment, data seasonally adjusted ............................................................................................................................................. Unemployment rates of civilian workers, by State ................................................................................................................................................. Employment of workers by State ................................................................................................................................................................................ Employment of workers by industry, data seasonally adjusted........................................................................................................................... Average weekly hours by industry, data seasonally adjusted ............................................................................................................................... Average hourly earnings by industry .......................................................................................................................................................................... Average weekly earnings by in d ustry.......................................................................................................................................................................... Hourly Earnings Index by industry.............................................................................................................................................................................. Indexes of diffusion: proportion of industries in which employment increased, seasonally adjusted ....................................................... Annual data: Employment status of the noninstitutional population ........................................................................................................... Annual data: Employment levels by industry .......................................................................................................................................................... Annual data: Average hours and earnings levels by in d ustry............................................................................................................................... 62 63 64 65 66 66 66 67 67 68 69 70 71 72 73 73 73 74 L a b o r c o m p e n s a tio n a n d c o lle c tiv e b a r g a in in g d a ta 22. 23. 24. 25. 26. 27. 28. 29. Employment Cost Index, compensation, by occupation and industry group .................................................................................................. Employment Cost Index, wages and salaries, by occupation and industry g r o u p ......................................................................................... Employment Cost Index, private nonfarm workers, by bargaining status, region, and area s i z e .............................................................. Specified compensation and wage adjustments from contract settlements, and effective wage adjustments, situations covering'1,000 workers or more ............................................................................................................................................................... Average specified compensation and wage adjustments, bargainingsituations covering 1,000 workers or m o r e ...................................... Average effective wage adjustments, bargaining situations covering 1,000 workers ormore .......... Specified compensation and wage adjustments, State and local government bargaining situations covering 1,000 workers or more ............................................................................................................................................................... Work stoppages involving 1,000 workers or more ................................................................................................................................................. 75 76 77 78 78 79 79 79 P r ic e d a ta 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. Consumer Price Index: U .S. City average, by expenditurecategory and commodity and service groups ................................................ Consumer Price Index: U .S. City average and local data, all items .................................................................................................................... Annual data: Consumer Price Index, all items and major groups ...................................................................................................................... Producer Price Indexes by stage of processing ........................................................................................................................................................ Producer Price Indexes, by durability of product ................................................................................................................................................... Annual data: Producer Price Indexes by stage of p ro cessin g ............................................................................................................................... U .S. export price indexes by Standard International Trade C lassification ......................................................................................................... U .S. import price indexes by Standard International Trade C lassification.................................................. U .S. export price indexes by end-use category ......................................................................................................................................................... U .S. import price indexes by end-use ca teg o ry ..................................................................................................................................... U .S. export price indexes by Standard Industrial C lassification........................................................................................................................... U .S. import price indexes by Standard Industrial Classification ......................................................................................................................... https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 80 83 84 85 86 86 87 88 89 89 89 90 MONTHLY LABOR REVIEW March 1987 • Current Labor Statistics Contents— Continued Productivity data 42. Indexes o f productivity, hourly compensation, and unit costs, data seasonally adjusted ............................................................................. 43. Annual indexes o f multifactor productivity ............................................................................................................................................................... 44. Annual indexes o f productivity, hourly compensation, unit costs, and p r ic e s................................................................................................. 90 91 91 International comparisons 45. Unemployment rates in nine countries, data seasonally adjusted ........................................................................................................................ 46. Annual data: Employment status o f civilian working-age population, ten countries .................................................................................... 47. Annual indexes o f productivity and related measures, twelve countries ........................................................................................................... 92 93 94 Injury and illness data 48. Annual data: Occupational injury and illness incidence r a te s............................................................................................................................... Schedule of release dates for Series bls 95 statistical series Release date Period covered Release date Period covered April 27 1st quarter April 3 March Release date Period covered MLRtable number Productivity and costs: Nonfarm business and manufacturing ................................ Nonfinancial corporations................... March 2 4th quarter Employment situation ............................ March 6 February 2; 42-44 2; 42-44 May 8 April 1; 4-21 Producer Price Index.............................. March 13 February April 10 March May 15 April 2; 33-35 Consumer Price Index............................ March 27 February April 24 March May 22 April 2; 30-32 Real earnings......................................... March 27 February May 22 April 14-17 April 24 March Major collective bargaining settlem ents......................................... April 27 Employment Cost Index ........................ April 28 1st quarter 1st quarter 1-3;22-24 U.S. Import and Export Price Indexes...................................... April 30 1st quarter 36-41 50 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3; 25-28 NOTES ON CURRENT LABOR STATISTICS This section o f the Review presents the principal statistical series collected and calculated by the Bureau of Labor Statistics: series on labor force, employment, unemployment, collective bargaining settlements, consumer, producer, and international prices, productivity, international comparisons, and injury and illness statistics. In the notes that follow, the data in each group o f tables are briefly described, key definitions are given, notes on the data are set forth, and sources of additional information are cited. Adjustments for price changes. Some data— such as the Hourly Earnings Index in table 17— are adjusted to eliminate the effect of changes in price. These adjustments are made by dividing current dollar values by the Consumer Price Index or the appropriate component of the index, then multiplying by 100. For example, given a current hourly wage rate of $3 and a current price index number of 150, where 1967 = 1 0 0 , the hourly rate expressed in 1967 dollars is $2 ($3/150 x 100 = $2). The $2 (or any other resulting values) are described as “real,” “constant,” or “ 1967” dollars. General notes Additional information The following notes apply to several tables in this section: Seasonal adjustment. Certain monthly and quarterly data are adjusted to eliminate the effect on the data of such factors as climatic conditions, industry production schedules, opening and closing of schools, holiday buying periods, and vacation practices, which might prevent short-term evaluation o f the statistical series. Tables containing data that have been adjusted are identified as “seasonally adjusted.” (All other data are not seasonally adjusted.) Seasonal effects are estimated on the basis of past experience. When new seasonal factors are computed each year, revisions may affect seasonally adjusted data for several preceding years. (Season ally adjusted data appear in tables 1 -3 , 4 -1 0 , 13, 14, 17, and 18.) Begin ning in January 1980, the b l s introduced two major modifications in the seasonal adjustment methodology for labor force data. First, the data are seasonally adjusted with a procedure called x - n a r im a , which was devel oped at Statistics Canada as an extension of the standard x - u method previously used by b l s . A detailed description of the procedure appears in The x -ll a r im a Seasonal Adjustment Method by Estela Bee Dagum (Statis tics Canada, Catalogue No. 12-564E , February 1980). The second change is that seasonal factors are calculated for use during the first 6 months of the year, rather than for the entire year, and then are calculated at midyear for the July-December period. However, revisions of historical data con tinue to be made only at the end of each calendar year. Seasonally adjusted labor force data in tables 1 and 4 -1 0 were revised in the February 1987 issue of the Review, to reflect experience through 1986. Annual revisions o f the seasonally adjusted payroll data shown in tables 13, 14, and 18 were made in the July 1986 Review using the x - ll a r im a seasonal adjustment methodology. New seasonal factors for productivity data in table 42 are usually introduced in the September issue. Seasonally adjusted indexes and percent changes from month to month and from quarter to quarter are published for numerous Consumer and Producer Price Index series. However, seasonally adjusted indexes are not published for the U .S. average All Items c p i . Only seasonally adjusted percent changes are available for this series. Data that supplement the tables in this section are published by the Bureau in a variety of sources. News releases provide the latest statistical information published by the Bureau; the major recurring releases are published according to the schedule preceding these general notes. More information about labor force, employment, and unemployment data and the household and establishment surveys underlying the data are available in Employment and Earnings, a monthly publication of the Bureau. More data from the household survey are published in the two-volume data book— Labor Force Statistics Derived From the Current Population Sur vey, Bulletin 2096. More data from the establishment survey appear in two data books— Employment, Hours, and Earnings, United States, and Em ployment, Hours, and Earnings, States and Areas, and the annual supple ments to these data books. More detailed information on employee com pensation and collective bargaining settlements is published in the monthly periodical, Current Wage Developments. More detailed data on consumer and producer prices are published in the monthly periodicals, The c p i Detailed Report, and Producer Prices and Price Indexes. Detailed data on all of the series in this section are provided in the Handbook of Labor Statistics, which is published biennally by the Bureau, b l s bulletins are issued covering productivity, injury and illness, and other data in this section. Finally, the Monthly Labor Review carries analytical articles on annual and longer term developments in labor force, employment, and unemployment; employee compensation and collective bargaining; prices; productivity; international comparisons; and injury and illness data. Symbols p = preliminary. To increase the timeliness of some series, prelim inary figures are issued based on representative but incom plete returns. r = revised. Generally, this revision reflects the availability o f later data but may also reflect other adjustments, n.e.c. = not elsewhere classified, n.e.s. = not elsewhere specified. COMPARATIVE INDICATORS (Tables 1-3) Comparative indicators tables provide an overview and comparison of major b l s statistical series. Consequently, although many of the included series are available monthly, all measures in these comparative tables are presented quarterly and annually. Labor market indicators include employment measures from two ma jor surveys and information on rates of change in compensation provided by the Employment Cost Index ( e c i ) program. The labor force participation rate, the employment-to-population ratio, and unemployment rates for major demographic groups based on the Current Population (“household ”) Survey are presented, while measures of employment and average weekly hours by major industry sector are given using nonagricultural payroll data. The Employment Cost Index (compensation), by major sector and by https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis b arg a in in g sta tu s, is c h o s e n fro m a va riety o f bls co m p e n sa tio n and w a g e m ea su res b e c a u se it p ro v id es a c o m p r e h e n s iv e m ea su re o f e m p lo y e r c o sts fo r h irin g la b o r, n ot ju st o u tla y s fo r w a g e s , and it is n ot a ffecte d by e m p lo y m e n t sh ifts a m o n g o cc u p a tio n s and in d u stries. Data on changes in compensation, prices, and productivity are pre sented in table 2. Measures of rates of change of compensation and wages from the Employment Cost Index program are provided for all civilian nonfarm workers (excluding Federal and household workers) and for all private nonfarm workers. Measures of changes in: consumer prices for all urban consumers; producer prices by stage of processing; and the overall export and import price indexes are given. Measures of productivity (output per hour of all persons) are provided for major sectors. 51 MONTHLY LABOR REVIEW March 1987 • Current Labor Statistics Alternative measures of wage and compensation rates of change, which reflect the overall trend in labor costs, are summarized in table 3. Differences in concepts and scope, related to the specific purposes of the series, contribute to the variation in changes among the individual mea sures. Notes on the data Definitions o f each series and notes on the data are contained in later sections of these notes describing each set of data. For detailed descriptions of each data series, see bls Handbook of Methods, Volumes I and II, Bulletins 2134-1 and 2 1 34-2 (Bureau of Labor Statistics, 1982 and 1984, respectively), as well as the additional bulletins, articles, and other publi cations noted in the separate sections of the Review's “Current Labor Statistics Notes.” Historical data for many series are provided in the Hand book of Labor Statistics, Bulletin 2217 (Bureau of Labor Statistics, 1985). Users may also wish to consult Major Programs, Bureau of Labor Statis tics, Report 718 (Bureau of Labor Statistics, 1985). EMPLOYMENT DATA (Tables 1; 4-21) Household survey data the various data series appear in the Explanatory Notes of Employment and Earnings. Description of the series in this section are obtained from the Current Population Survey, a program o f personal interviews conducted monthly by the Bureau o f the Census for the Bureau of Labor Statistics. The sample consists of about 59,500 households selected to represent the U .S. population 16 years o f age and older. Households are interviewed on a rotating basis, so that three-fourths o f the sample is the same for any 2 consecutive months. Data in tables 4 - 1 0 are seasonally adjusted, based on the seasonal experience through December 1986. e m pl o y m e n t d a t a Definitions Employed persons include (1) all civilians who worked for pay any time during the week which includes the 12th day of the month or who worked unpaid for 15 hours or more in a family-operated enterprise and (2) those who were temporarily absent from their regular jobs because of illness, vacation, industrial dispute, or similar reasons. Members o f the Armed Forces stationed in the United States are also included in the employed total. A person working at more than one job is counted only in the job at which he or she worked the greatest number of hours. Unemployed persons are those who did not work during the survey week, but were available for work except for temporary illness and had looked for jobs within the preceding 4 weeks. Persons who did not look for work because they were on layoff or waiting to start new jobs within the next 30 days are also counted among the unemployed. The overall unem ployment rate represents the number unemployed as a percent o f the labor force, including the resident Armed Forces. The civilian unemployment rate represents the number unemployed as a percent of the civilian labor force. The labor force consists of all employed or unemployed civilians plus members o f the Armed Forces stationed in the United States. Persons not in the labor force are those not classified as employed or unemployed; this group includes persons who are retired, those engaged in their own house work, those not working while attending school, those unable to work because o f long-term illness, those discouraged from seeking work because o f personal or job market factors, and those who are voluntarily idle. The noninstitutional population comprises all persons 16 years of age and older who are not inmates o f penal or mental institutions, sanitariums, or homes for the aged, infirm, or needy, and members of the Armed Forces stationed in the United States. The labor force participation rate is the proportion o f the noninstitutional population that is in the labor force. The employment-population ratio is total employment (including the resident Armed Forces) as a percent o f the noninstitutional population. Notes on the data From time to time, and especially after a decennial census, adjustments are made in the Current Population Survey figures to correct for estimating errors during the preceding years. These adjustments affect the comparabil ity o f historical data. A description of these adjustments and their effect on 52 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Additional sources of information For detailed explanations of the data, see b ls Handbook of Methods , Bulletin 2134-1 (Bureau of Labor Statistics, 1982), chapter 1, and for additional data, Handbook of Labor Statistics, Bulletin 2217 (Bureau of Labor Statistics, 1985). A detailed description of the Current Population Survey as well as additional data are available in the monthly Bureau of Labor Statistics periodical, Employment and Earnings. Historical data from 1948 to 1981 are available in Labor Force Statistics Derived from the Current Population Survey: A Databook, Vols. I and II, Bulletin 2096 (Bureau of Labor Statistics, 1982). A comprehensive discussion of the differences between household and establishment data on employment appears in Gloria P. Green, “Comparing employment estimates from household and payroll surveys,” Monthly Labor Review, December 1969, pp. 9 -2 0 . Establishment survey data Description of the series E m p l o y m e n t , h o u r s , a n d e a r n in g s d a t a in this section are compiled from payroll records reported monthly on a voluntary basis to the Bureau of Labor Statistics and its cooperating State agencies by more than 250,000 establishments representing all industries except agriculture. In most indus tries, the sampling probabilities are based on the size of the establishment; most large establishments are therefore in the sample. (An establishment is not necessarily a firm; it may be a branch plant, for example, or ware house.) Self-employed persons and others not on a regular civilian payroll are outside the scope o f the survey because they are excluded from estab lishment records. This largely accounts for the difference in employment figures between the household and establishment surveys. Definitions An establishment is an economic unit which produces goods or services (such as a factory or store) at a single location and is engaged in one type of economic activity. Employed persons are all persons who received pay (including holiday and sick pay) for any part of the payroll period including the 12th of the month. Persons holding more than one job (about 5 percent of all persons in the labor force) are counted in each establishment which reports them. Production workers in manufacturing include working supervisors and all nonsupervisory workers closely associated with production operations. Those workers mentioned in tables 12-17 include production workers in manufacturing and mining; construction workers in construction; and non supervisory workers in the following industries: transportation and public utilities; wholesale and retail trade; finance, insurance, and real estate; and services. These groups account for about four-fifths of the total employ ment on private nonagricutural payrolls. Earnings are the payments production or nonsupervisory workers re ceive during the survey period, including premium pay for overtime or late-shift work but excluding irregular bonuses and other special payments. Real earnings are earnings adjusted to reflect the effects of changes in consumer prices. The deflator for this series is derived from the Consumer Price Index for Urban Wage Earners and Clerical Workers ( cpi- w ). The Hourly Earnings Index is calculated from average hourly earnings data adjusted to exclude the effects o f two types o f changes that are unrelated to underlying wage-rate developments: fluctuations in overtime premiums in manufacturing (the only sector for which overtime data are available) and the effects o f changes and seasonal factors in the proportion of workers in high-wage and low-wage industries. Hours represent the average weekly hours of production or nonsupervi sory workers for which pay was received and are different from standard or scheduled hours. Overtime hours represent the portion of gross average weekly hours which were in excess of regular hours and for which overtime premiums were paid. The Diffusion Index, introduced in the May 1983 Review, represents the percent o f 185 nonagricultural industries in which employment was rising over the indicated period. One-half of the industries with unchanged employment are counted as rising. In line with Bureau practice, data for the 1-, 3-, and 6-month spans are seasonally adjusted, while those for the 12-month span are unadjusted. The diffusion index is useful for measur ing the dispersion of economic gains or losses and is also an economic indicator. Notes on the data Establishment data collected by the Bureau of Labor Statistics are peri odically adjusted to com prehensive counts o f em ploym ent (called “benchmarks”). The latest complete adjustment was made with the release o f May 1986 data, published in the July 1986 issue o f the Review. Conse quently, data published in the Review prior to that issue are not necessarily comparable to current data. Unadjusted data have been revised back to April 1984; seasonally adjusted data have been revised back to January 1981. These revisions were published in the Supplement to Employment and Earnings (Bureau o f Labor Statistics, 1986). Unadjusted data from April 1985 forward, and seasonally adjusted data from January 1982 for ward are subject to revision in future benchmarks. In the establishment survey, estimates for the 2 most recent months are based on incomplete returns and are published as preliminary in the tables (13 to 16 in the Review). When all returns have been received, the esti mates are revised and published as final in the third month of their appear ance. Thus, August data are published as preliminary in October and November and as final in December. For the same reason, quarterly estab lishment data (table 1) are preliminary for the first 2 months of publication and final in the third month. Thus, second-quarter data are published as preliminary in August and September and as final in October. Additional sources of information Detailed data from the establishment survey are published monthly in the periodical, Employment and Earnings. Earlier comparable unadjusted and seasonally adjusted data are published in Employment, Hours, and Earnings, United States, 1909-84, Bulletin 1312-12 (Bureau o f Labor Statistics, 1985) and its annual supplement. For a detailed discussion o f the methodology o f the survey, see bls Handbook of Methods, Bulletin 2134-1 (Bureau of Labor Statistics, 1982), chapter 2. For additional data, see Handbook of Labor Statistics, Bulletin 2217 (Bureau of Labor Statistics, 1985). A comprehensive discussion of the differences between household and establishment data on employment appears in Gloria P. Green, “Comparing employment estimates from household and payroll surveys,” Monthly Labor Review, December 1969, pp. 9 -2 0 . bls Unemployment data by State Description of the series Data presented in this section are obtained from two major sources— the Current Population Survey ( c p s ) and the Local Area Unemployment Statis tics ( l a u s ) program, which is conducted in cooperation with State employ ment security agencies. Monthly estimates of the labor force, employment, and unemployment for States and sub-State areas are a key indicator of local economic condi tions and form the basis for determining the eligibility o f an area for benefits under Federal economic assistance programs such as the Job Train ing Partnership Act and the Public Works and Economic Development Act. Insofar as possible, the concepts and definitions underlying these data are those used in the national estimates obtained from the c p s . Notes on the data Data refer to State of residence. Monthly data for 11 States— California, Florida, Illinois, Massachusetts, Michigan, New York, New Jersey, North Carolina, Ohio, Pennsylvania, and Texas— are obtained directly from the c p s , because the size of the sample is large enough to meet b l s standards of reliability. Data for the remaining 39 States and the District o f Columbia are derived using standardized procedures established by b l s . Once a year, estimates for the 11 States are revised to new population controls. For the remaining States and the District of Columbia, data are benchmarked to annual average c ps levels. Additional sources of information Information on the concepts, definitions, and technical procedures used to develop labor force data for States and sub-State areas as well as addi tional data on sub-States are provided in the monthly Bureau of Labor Statistics periodical, Employment and Earnings, and the annual report, Geographic Profile of Employment and Unemployment (Bureau o f Labor Statistics). See also bls Handbook of Methods, Bulletin 2134-1 (Bureau of Labor Statistics, 1982), chapter 4. COMPENSATION AND WAGE DATA (Tables 1-3; 22-29) are gathered by the Bureau from business establishments, State and local governments, labor unions, collective bar gaining agreements on file with the Bureau, and secondary sources. C o m p e n s a t io n a n d w age d a ta Employment Cost Index Description of the series The Employment Cost Index ( e c i ) is a quarterly measure of the rate of change in compensation per hour worked and includes wages, salaries, and employer costs o f employee benefits. It uses a fixed market basket of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis labor— similar in concept to the Consumer Price Index’s fixed market basket of goods and services— to measure change over time in employer costs of employing labor. The index is not seasonally adjusted. Statistical series on total compensation costs and on wages and salaries are available for private nonfarm workers excluding proprietors, the selfemployed, and household workers. Both series are also available for State and local government workers and for the civilian nonfarm economy, which consists o f private industry and State and local government workers combined. Federal workers are excluded. The Employment Cost Index probability sample consists o f about 2,200 private nonfarm establishments providing about 12,000 occupational ob servations and 700 State and local government establishments providing 53 MONTHLY LABOR REVIEW March 1987 • Current Labor Statistics 3,500 occupational observations selected to represent total employment in each sector. On average, each reporting unit provides wage and compensa tion information on five well-specified occupations. Data are collected each quarter for the pay period including the 12th day of March, June, Septem ber, and December. Beginning with June 1986 data, fixed employment weights from the 1980 Census of Population are used each quarter to calculate the indexes for civilian, private, and State and local governments. (Prior to June 1986, the employment weights are from the 1970 Census of Population.) These fixed weights, also used to derive all of the industry and occupation series indexes, ensure that changes in these indexes reflect only changes in com pensation, not employment shifts among industries or occupations with different levels o f wages and compensation. For the bargaining status, region, and metropolitan/nonmetropolitan area series, however, employ ment data by industry and occupation are not available from the census. Instead, the 1980 employment weights are reallocated within these series each quarter based on the current sample. Therefore, these indexes are not strictly comparable to those for the aggregate, industry, and occupation series. Definitions Total compensation costs include wages, salaries, and the employer’s costs for employee benefits. Wages and salaries consist of earnings before payroll deductions, in cluding production bonuses, incentive earnings, commissions, and cost-ofliving adjustments. Benefits include the cost to employers for paid leave, supplemental pay (including nonproduction bonuses), insurance, retirement and savings plans, and legally required benefits (such as Social Security, workers’ compensation, and unemployment insurance). Excluded from wages and salaries and employee benefits are such items as payment-in-kind, free room and board, and tips. Notes on the data The Employment Cost Index data series began in the fourth quarter of 1975, with the quarterly percent change in wages and salaries in the private nonfarm sector. Data on employer costs for employee benefits were in cluded in 1980 to produce, when combined with the wages and salaries series, a measure of the percent change in employer costs for employee total compensation. State and local government units were added to the eci coverage in 1981, providing a measure of total compensation change in the civilian nonfarm economy (excluding Federal employees). Historical in dexes (June 1981 = 100) o f the quarterly rates of change are presented in the May issue o f the b ls monthly periodical, Current Wage Developments. Additional sources of information For a more detailed discussion of the Employment Cost Index, see the Handbook of Methods, Bulletin 2134-1 (Bureau of Labor Statistics, 1982), chapter 11, and the fo llo w in g M onthly L abor R eview articles: “Employment Cost Index: a measure of change in the ‘price o f labor’,” July 1975; “How benefits will be incorporated into the Employment Cost In dex,” January 1978; “Estimation procedures for the Employment Cost Index,” May 1982; and “Introducing new weights for the Employment Cost Index,” June 1985. Data on the ec i are also available in bls quarterly press releases issued in the month following the reference months of March, June, September, and December; and from the Handbook of Labor Statistics, Bulletin 2217 (Bureau o f Labor Statistics, 1985). Collective bargaining settlements (wage and benefit costs) and wages alone, quarterly for private industry and semiannually for State and local government. Compensation measures cover all collective bargaining situations involving 5,000 workers or more and wage measures cover all situations involving 1,000 workers or more. These data, covering private nonagricultural industries and State and local governments, are calculated using information obtained from bargaining agreements on file with the Bureau, parties to the agreements, and second ary sources, such as newspaper accounts. The data are not seasonally adjusted. Settlement data are measured in terms of future specified adjustments: those that will occur within 12 months after contract ratification— firstyear— and all adjustments that will occur over the life of the contract expressed as an average annual rate. Adjustments are worker weighted. Both first-year and over-the-life measures exclude wage changes that may occur under cost-of-living clauses that are triggered by future movements in the Consumer Price Index. Effective wage adjustments measure all adjustments occurring in the reference period, regardless of the settlement date. Included are changes from settlements reached during the period, changes deferred from con tracts negotiated in earlier periods, and changes under cost-of-living adjust ment clauses. Each wage change is worker weighted. The changes are prorated over all workers under agreements during the reference period yielding the average adjustment. Definitions Wage rate changes are calculated by dividing newly negotiated wages by the average hourly earnings, excluding overtime, at the time the agree ment is reached. Compensation changes are calculated by dividing the change in the value of the newly negotiated wage and benefit package by existing average hourly compensation, which includes the cost of previ ously negotiated benefits, legally required social insurance programs, and average hourly earnings. Compensation changes are calculated by placing a value on the benefit portion of the settlements at the time they are reached. The cost estimates are based on the assumption that conditions existing at the time of settle ment (for example, methods of financing pensions or composition of labor force) will remain constant. The data, therefore, are measures of negotiated changes and not of total changes in employer cost. Contract duration runs from the effective date of the agreement to the expiration date or first wage reopening date, if applicable. Average annual percent changes over the contract term take account of the compounding of successive changes. Notes on the data Care should be exercised in comparing the size and nature of the settle ments in State and local government with those in the private sector because of differences in bargaining practices and settlement characteristics. A principal difference is the incidence of cost-of-living adjustment ( c o l a ) clauses which cover only about 2 percent of workers under a few local government settlements, but cover 50 percent of workers under private sector settlements. Agreements without c o l a ’s tend to provide larger speci fied wage increases than those with c o l a ’ s . Another difference is that State and local government bargaining frequently excludes pension benefits which are often prescribed by law. In the private sector, in contrast, pensions are typically a bargaining issue. Additional sources of information Description of the series For a more detailed discussion on the series, see the bls Handbook of Methods, Bulletin 2134-1 (Bureau of Labor Statistics, 1982), chapter 10. Collective bargaining settlements data provide statistical measures of negotiated adjustments (increases, decreases, and freezes) in compensation Comprehensive data are published in press releases issued quarterly (in January, April, July, and October) for private industry, and semi- 54 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis annually (in February and August) for State and local government. Histor ical data and additional detailed tabulations for the prior calendar year appear in the April issue o f the b l s monthly periodical, Current Wage monthly periodical, Current Wage Developments. Historical data appear in the bls Handbook of Labor Statistics. Developments. Other compensation data Work stoppages Description of the series Data on work stoppages measure the number and duration of major strikes or lockouts (involving 1,000 workers or more) occurring during the month (or year), the number of workers involved, and the amount o f time lost because o f stoppage. Data are largely from newspaper accounts and cover only establishments directly involved in a stoppage. They do not measure the indirect or second ary effect o f stoppages on other establishments whose employees are idle owing to material shortages or lack o f service. Definitions Number of stoppages: The number o f strikes and lockouts involving workers or more and lasting a full shift or longer. Workers involved: The number of workers directly involved in the stoppage. Number of days idle: The aggregate number of workdays lost by workers involved in the stoppages. Days of idleness as a percent of estimated working time: Aggregate workdays lost as a percent of the aggregate number of standard workdays in the period multiplied by total employment in the period. 1,000 Notes on the data This series is not comparable with the one terminated in 1981 that covered strikes involving six workers or more. Additional sources of information Data for each calendar year are reported in a b l s press release issued in the first quarter o f the following year. Monthly data appear in the bls Other b l s data on pay and benefits, not included in the Current Labor Statistics section of the Monthly Labor Review, appear in and consist o f the following: Industry Wage Surveys provide data for specific occupations selected to represent an industry’s wage structure and the types of activities performed by its workers. The Bureau collects information on weekly work schedules, shift operations and pay differentials, paid holiday and vacation practices, and information on incidence o f health, insurance, and retirement plans. Reports are issued throughout the year as the surveys are completed. Summaries of the data and special analyses also appear in the Monthly Labor Review. Area Wage Surveys annually provide data for selected office, clerical, professional, technical, maintenance, toolroom, powerplant, material movement, and custodial occupations common to a wide variety o f indus tries in the areas (labor markets) surveyed. Reports are issued throughout the year as the surveys are completed. Summaries of the data and special analyses also appear in the Review. The National Survey of Professional, Administrative, Technical, and Clerical Pay provides detailed information annually on salary levels and distributions for the types of jobs mentioned in the survey’s title in private employment. Although the definitions of the jobs surveyed reflect the duties and responsibilities in private industry, they are designed to match specific pay grades of Federal white-collar employees under the General Schedule pay system. Accordingly, this survey provides the legally re quired information for comparing the pay of salaried employees in the Federal civil service with pay in private industry. (See Federal Pay Com parability Act of 1970, 5 u.s.c. 5305.) Data are published in a bls news release issued in the summer and in a bulletin each fall; summaries and analytical articles also appear in the Review. Employee Benefits Survey provides nationwide information on the inci dence and characteristics o f employee benefit plans in medium and large establishments in the United States, excluding Alaska and Hawaii. Data are published in an annual b l s news release and bulletin, as well as in special articles appearing in the Review. PRICE DATA (Tables 2; 30-41) P rice d a t a are gathered by the Bureau of Labor Statistics from retail and primary markets in the United States. Price indexes are given in relation to a base period (1967 = 100, unless otherwise noted). Consumer Price Indexes Description of the series The Consumer Price Index ( c pi ) is a measure of the average change in the prices paid by urban consumers for a fixed market basket o f goods and services. The cpi is calculated monthly for two population groups, one consisting only o f urban households whose primary source of income is derived from the employment o f wage earners and clerical workers, and the other consisting o f all urban households. The wage earner index ( c pi - w ) is a continuation o f the historic index that was introduced well over a halfcentury ago for use in wage negotiations. As new uses were developed for the CPI in recent years, the need for a broader and more representative index became apparent. The all urban consumer index ( cpi - u ), introduced in 1978, is representative o f the 1982-84 buying habits o f about 80 percent o f the noninstitutional population o f the United States at that time, com pared with 32 percent represented in the cpi- w . In addition to wage earners https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis and cleric a l w o rk ers, the cpi - u c o v e r s p r o fe s s io n a l, m a n a g eria l, and te c h n ica l w o rk ers, th e s e lf-e m p lo y e d , short-term w o rk ers, th e u n e m p lo y e d , re tirees, and o th ers n ot in the lab or fo rce . The cpi is based on prices of food, clothing, shelter, fuel, drugs, trans portation fares, doctors’ and dentists’ fees, and other goods and services that people buy for day-to-day living. The quantity and quality o f these items are kept essentially unchanged between major revisions so that only price changes will be measured. All taxes directly associated with the purchase and use o f items are included in the index. Data collected from more than 21,000 retail establishments and 60,000 housing units in 91 urban areas across the country are used to develop the “U .S. city average.” Separate estimates for 27 major urban centers are presented in table 31. The areas listed are as indicated in footnote 1 to the table. The area indexes measure only the average change in prices for each area since the base period, and do not indicate differences in the level o f prices among cities. Notes on the data In January 1983, the Bureau changed the way in which homeownership costs are measured for the cpi- u . A rental equivalence method replaced the 55 MONTHLY LABOR REVIEW March 1987 • Current Labor Statistics asset-price approach to homeownership costs for that series. In January 1985, the same change was made in the cpi- w . The central purpose of the change was to separate shelter costs from the investment component of homeownership so that the index would reflect only the cost of shelter services provided by owner-occupied homes. An updated cpi -u and c pi -w were introduced with release of the January 1987 data. Additional sources of information For a discussion o f the general method for computing the c p i, see b l s Handbook of Methods, Volume II, The Consumer Price Index, Bulletin 2 1 3 4 -2 (Bureau o f Labor Statistics, 1984). The recent change in the mea surement o f homeownership costs is discussed in Robert Gillingham and Walter Lane, “Changing the treatment of shelter costs for homeowners in the c p i ,” Monthly Labor Review, June 1982, pp. 9 -1 4 . An overview o f the recently introduced revised c p i , reflecting 1982-84 expenditure patterns, is contained in The Consumer Price Index: 1987 Revision , Report 736 (Bu reau o f Labor Statistics, 1987). Additional detailed cpi data and regular analyses of consumer price changes are provided in the c p i Detailed Report, a monthly publication of the Bureau. Historical data for the overall cpi and for selected groupings may be found in the Handbook of Labor Statistics , Bulletin 2217 (Bureau o f Labor Statistics, 1985). Producer Price Indexes Description of the series Producer Price Indexes ( ppi) measure average changes in prices re ceived in primary markets of the United States by producers of commodi ties in all stages o f processing. The sample used for calculating these indexes currently contains about 3,200 commodities and about 60,000 quotations per month selected to represent the movement of prices of all commodities produced in the manufacturing, agriculture, forestry, fishing, mining, gas and electricity, and public utilities sectors. The stage o f proc essing structure o f Producer Price Indexes organizes products by class of buyer and degree o f fabrication (that is, finished goods, intermediate goods, and crude materials). The traditional commodity structure of ppi organizes products by similarity of end use or material composition. To the extent possible, prices used in calculating Producer Price Indexes apply to the first significant commercial transaction in the United States from the production or central marketing point. Price data are generally collected monthly, primarily by mail questionnaire. Most prices are ob tained directly from producing companies on a voluntary and confidential basis. Prices generally are reported for the Tuesday of the week containing the 13th day o f the month. Since January 1976, price changes for the various commodities have been averaged together with implicit quantity weights representing thenimportance in the total net selling value o f all commodities as of 1972. The detailed data are aggregated to obtain indexes for stage-of-processing groupings, commodity groupings, durability-of-product groupings, and a number o f special composite groups. All Producer Price Index data are subject to revision 4 months after original publication. Notes on the data Beginning with the January 1986 issue, the Review is no longer present ing tables o f Producer Price Indexes for commodity groupings, special composite groups, or sic industries. However, these data will continue to be presented in the Bureau’s monthly publication Producer Price Indexes. The Bureau has completed the first major stage of its comprehensive overhaul o f the theory, methods, and procedures used to construct the Producer Price Indexes. Changes include the replacement of judgment sampling with probability sampling techniques; expansion to systematic 56 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis coverage of the net output of virtually all industries in the mining and manufacturing sectors; a shift from a commodity to an industry orientation; the exclusion of imports from, and the inclusion of exports in, the survey universe; and the respecification of commodities priced to conform to Bureau o f the Census definitions. These and other changes have been phased in gradually since 1978. The result is a system of indexes that is easier to use in conjunction with data on wages, productivity, and employ ment and other series that are organized in terms of the Standard Industrial Classification and the Census product class designations. Additional sources of information For a discussion of the methodology for computing Producer Price In dexes, see b l s Handbook of Methods, Bulletin 2134-1 (Bureau of Labor Statistics, 1982), chapter 7. Additional detailed data and analyses o f price changes are provided monthly in Producer Price Indexes. Selected historical data may be found in the Handbook of Labor Statistics, Bulletin 2217 (Bureau of Labor Statistics, 1985). International Price Indexes Description of the series The b l s International Price Program produces quarterly export and import price indexes for nonmilitary goods traded between the United States and the rest of the world. The export price index provides a measure of price change for all products sold by U .S . residents to foreign buyers. (“Residents” is defined as in the national income accounts: it includes corporations, businesses, and individuals but does not require the organiza tions to be U .S. owned nor the individuals to have U .S. citizenship.) The import price index provides a measure of price change for goods purchased from other countries by U .S. residents. With publication of an all-import index in February 1983 and an all-export index in February 1984, all U .S. merchandise imports and exports now are represented in these indexes. The reference period for the indexes is 1977 = 100, unless otherwise indicated. The product universe for both the import and export indexes includes raw materials, agricultural products, semifinished manufactures, and finished manufactures, including both capital and consumer goods. Price data for these items are collected quarterly by mail questionnaire. In nearly all cases, the data are collected directly from the exporter or importer, al though in a few cases, prices are obtained from other sources. To the extent possible, the data gathered refer to prices at the U .S. border for exports and at either the foreign border or the U .S. border for imports. For nearly all products, the prices refer to transactions completed during the first 2 weeks o f the third month of each calendar quarter— March, June, September, and December. Survey respondents are asked to indicate all discounts, allowances, and rebates applicable to the reported prices, so that the price used in the calculation o f the indexes is the actual price for which the product was bought or sold. In addition to general indexes of prices for U .S. exports and imports, indexes are also published for detailed product categories of exports and imports. These categories are defined by the 4- and 5-digit level of detail of the Standard Industrial Trade Classification System ( sitc ). The calcula tion of indexes by sitc category facilitates the comparison of U .S. price trends and sector production with similar data for other countries. Detailed indexes are also computed and published on a Standard Industrial Classifi cation (sic-based) basis, as well as by end-use class. Notes on the data The export and import price indexes are weighted indexes o f the Laspeyres type. Price relatives are assigned equal importance within each weight category and are then aggregated to the s u e level. The values assigned to each weight category are based on trade value figures compiled by the Bureau o f the Census. The trade weights currently used to compute both indexes relate to 1980. Because a price index depends on the same items being priced from period to period, it is necessary to recognize when a product’s specifica tions or terms o f transaction have been modified. For this reason, the Bureau’s quarterly questionnaire requests detailed descriptions of the phys ical and functional characteristics of the products being priced, as well as information on the number of units bought or sold, discounts, credit terms, packaging, class o f buyer or seller, and so forth. When there are changes in either the specifications or terms of transaction of a product, the dollar value o f each change is deleted from the total price change to obtain the “pure” change. Once this value is determined, a linking procedure is employed which allows for the continued repricing o f the item. For the export price indexes, the preferred pricing basis is f.a.s. (free alongside ship) U .S. port o f exportation. When firms report export prices f.o.b. (free on board), production point information is collected which enables the Bureau to calculate a shipment cost to the port o f exportation. An attempt is made to collect two prices for imports. The first is the import price f.o.b. at the foreign port of exportation, which is consistent with the basis for valuation o f imports in the national accounts. The second is the import price c.i.f. (cost, insurance, and freight) at the U .S. port of impor tation, which also includes the other costs associated with bringing the product to the U .S. border. It does not, however, include duty charges. Additional sources of information For a discussion of the general method of computing International Price Indexes, see b l s Handbook of Methods , Bulletin 2134-1 (Bureau o f Labor Statistics, 1982), chapter 8. Additional detailed data and analyses of international price develop ments are presented in the Bureau’s quarterly publication U.S. Import and Export Price Indexes and in occasional Monthly Labor Review articles prepared by bls analysts. Selected historical data may be found in the Handbook of Labor Statistics , Bulletin 2217 (Bureau of Labor Statistics, 1985). PRODUCTIVITY DATA (Tables 2; 42-47) U. S. productivity and related data Description of the series The productivity measures relate real physical output to real input. As such, they encompass a family o f measures which include single factor input measures, such as output per unit of labor input (output per hour) or output per unit o f capital input, as well as measures of multifactor produc tivity (output per unit of labor and capital inputs combined). The Bureau indexes show the change in output relative to changes in the various inputs. The measures cover the business, nonfarm business, manufacturing, and nonfinancial corporate sectors. Corresponding indexes of hourly compensation, unit labor costs, unit nonlabor payments, and prices are also provided. Unit profits include corporate profits and the value o f inventory adjust ments per unit of output. Hours of all persons are the total hours paid of payroll workers, selfemployed persons, and unpaid family workers. Capital services is the flow of services from the capital stock used in production. It is developed from measures of the net stock o f physical assets— equipment, structures, land, and inventories— weighted by rental prices for each type o f asset. Labor and capital inputs combined are derived by combining changes in labor and capital inputs with weights which represent each component’s share of total output. The indexes for capital services and combined units of labor and capital are based on changing weights which are averages o f the shares in the current and preceding year (the Tomquist index-number formula). Notes on the data Definitions Output per hour of all persons (labor productivity) is the value of goods and services in constant prices produced per hour of labor input. Output per unit of capital services (capital productivity) is the value of goods and services in constant dollars produced per unit of capital services input. Multifactor productivity is the ratio output per unit of labor and capital inputs combined. Changes in this measure reflect changes in a number of factors which affect the production process such as changes in technology, shifts in the composition of the labor force, changes in capacity utilization, research and development, skill and efforts o f the work force, manage ment, and so forth. Changes in the output per hour measures reflect the impact o f these factors as well as the substitution of capital for labor. Compensation per hour is the wages and salaries of employees plus employers’ contributions for social insurance and private benefit plans, and the wages, salaries, and supplementary payments for the self-employed (except for nonfinancial corporations in which there are no selfemployed)— the sum divided by hours paid for. Real compensation per hour is compensation per hour deflated by the change in the Consumer Price Index for All Urban Consumers. Unit labor costs are the labor compensation costs expended in the production o f a unit of output and are derived by dividing compensation by output. Unit nonlabor payments include profits, depreciation, interest, and indirect taxes per unit of output. They are computed by subtracting compensation of all persons from current dollar value of output and divid ing by output. Unit nonlabor costs contain all the components of unit nonlabor payments except unit profits. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Output measures for the business sector and the nonfarm businesss sector exclude the constant dollar value o f owner-occupied housing, rest of world, households and institutions, and general government output from the con stant dollar value of gross national product. The measures are derived from data supplied by the Bureau of Economic Analysis, U.S. Department of Commerce, and the Federal Reserve Board. Quarterly manufacturing out put indexes are adjusted by the Bureau of Labor Statistics to annual esti mates of output (gross product originating) from the Bureau o f Economic Analysis. Compensation and hours data are developed from data o f the Bureau of Labor Statistics and the Bureau of Economic Analysis. The productivity and associated cost measures in tables 4 2 -4 4 describe the relationship between output in real terms and the labor time and capital services involved in its production. They show the changes from period to period in the amount of goods and services produced per unit of input. Although these measures relate output to hours and capital services, they do not measure the contributions of labor, capital, or any other specific factor of production. Rather, they reflect the joint effect of many influ ences, including changes in technology; capital investment; level o f output; utilization of capacity, energy, and materials; the organization o f produc tion; managerial skill; and the characteristics and efforts of the work force. Additional sources of information Descriptions of methodology underlying the measurement o f output per hour and multifactor productivity are found in the b l s Handbook of Meth ods , Bulletin 2134-1 (Bureau of Labor Statistics, 1982), chapter 13. His torical data for selected industries are provided in the Bureau’s Handbook of Labor Statistics , 1985, Bulletin 2217. 57 MONTHLY LABOR March 1987 • Current Labor Statistics INTERNATIONAL COMPARISONS (Tables 45-47) Labor force and unemployment Description of the series Tables 45 and 46 present comparative measures of the labor force, employment, and unemployment— approximating U .S. concepts— for the United States, Canada, Australia, Japan, and six European countries. The unemployment statistics (and, to a lesser extent, employment statistics) published by other industrial countries are not, in most cases, comparable to U .S. unemployment statistics. Therefore, the Bureau adjusts the figures for selected countries, where necessary, for all known major definitional differences. Although precise comparability may not be achieved, these adjusted figures provide a better basis for international comparisons than the figures regularly published by each country. Definitions For the principal U .S. definitions of the labor force, employment, and unemployment, see the Notes section on EMPLOYMENT DATA: House hold Survey Data. Notes on the data The adjusted statistics have been adapted to the age at which compulsory schooling ends in each country, rather than to the U .S. standard of 16 years o f age and over. Therefore, the adjusted statistics relate to the population age 16 and over in France, Sweden, and from 1973 onward, Great Britain; 15 and over in Canada, Australia, Japan, Germany, the Netherlands, and prior to 1973, Great Britain; and 14 and over in Italy. The institutional population is included in the denominator of the labor force participation rates and employment-population ratios for Japan and Germany; it is ex cluded for the United States and the other countries. In the U .S. labor force survey, persons on layoff who are awaiting recall to their job are classified as unemployed. European and Japanese layoff practices are quite different in nature from those in the United States; therefore, strict application of the U .S. definition has not been made on this point. For further information, see Monthly Labor Review, December 1981, pp. 8 -1 1 . The figures for one or more recent years for France, Germany, Great Britain, Italy, and the Netherlands are calculated using adjustment factors based on labor force surveys for earlier years and are considered prelimi nary. The recent-year measures for these countries are, therefore, subject to revision whenever data from more current labor force surveys become available. Additional sources of information For further information, see International Comparisons of Unemploy ment, Bulletin 1979 (Bureau of Labor Statistics, 1978), Appendix B and unpublished Supplements to Appendix B available on request. The statis tics are also analyzed periodically in the Monthly Labor Review . Additional historical data, generally beginning with 1959, are published in the Hand book o f Labor Statistics and are available in unpublished statistical supple ments to Bulletin 1979. Manufacturing productivity and labor costs Description of the series Table 47 presents comparative measures of manufacturing labor produc tivity, hourly compensation costs, and unit labor costs for the United 58 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis States, Canada, Japan, and nine European countries. These measures are limited to trend comparisons— that is, intercountry series of changes over time— rather than level comparisons because reliable international com parisons of the levels of manufacturing output are unavailable. Definitions Output is constant value output (value added), generally taken from the national accounts of each country. While the national accounting methods for measuring real output differ considerably among the 12 countries, the use of different procedures does not, in itself, connote lack of comparabil ity— rather, it reflects differences among countries in the availability and reliability of underlying data series. Hours refer to all employed persons including the self-employed in the United States and Canada; to all wage and salary employees in the other countries. The U .S. hours measure is hours paid; the hours measures for the other countries are hours worked. Compensation (labor cost) includes all payments in cash or kind made directly to employees plus employer expenditures for legally required in surance programs and contractual and private benefit plans. In addition, for some countries, compensation is adjusted for other significant taxes on payrolls or employment (or reduced to reflect subsidies), even if they are not for the direct benefit of workers, because such taxes are regarded as labor costs. However, compensation does not include all items of labor cost. The costs o f recruitment, employee training, and plant facilities and services— such as cafeterias and medical clinics— are not covered because data are not available for most countries. Self-employed workers are in cluded in the U .S. and Canadian compensation figures by assuming that their hourly compensation is equal to the average for wage and salary employees. Notes on the data For most of the countries, the measures refer to total manufacturing as defined by the International Standard Industrial Classification. However, the measures for France (beginning 1959), Italy (beginning 1970), and the United Kingdom (beginning 1976), refer to manufacturing and mining less energy-related products and the figures for the Netherlands exclude petroleum refining from 1969 to 1976. For all countries, manufacturing includes the activities of government enterprises. The figures for one or more recent years are generally based on current indicators of manufacturing output, employment, hours, and hourly com pensation and are considered preliminary until the national accounts and other statistics used for the long-term measures become available. Additional sources of information For additional information, see the bls Handbook of Methods, Bulletin 2134-1 (Bureau o f Labor Statistics, 1982), chapter 16 and periodic Monthly Labor Review articles. Historical data are provided in the Bureau’s Hand book of Labor Statistics, Bulletin 2217, 1985. The statistics are issued twice per year— in a news release (generally in May) and in a Monthly Labor Review article (generally in December). OCCUPATIONAL INJURY AND ILLNESS DATA (Table 48) Description of the series The Annual Survey of Occupational Injuries and Illnesses is designed to collect data on injuries and illnesses based on records which employers in the following industries maintain under the Occupational Safety and Health Act o f 1970: agriculture, forestry, and fishing; oil and gas extraction; construction; manufacturing; transportation and public utilities; wholesale and retail trade; finance, insurance, and real estate; and services. Excluded from the survey are self-employed individuals, farmers with fewer than 11 employees, employers regulated by other Federal safety and health laws, and Federal, State, and local government agencies. Because the survey is a Federal-State cooperative program and the data must meet the needs of participating State agencies, an independent sam ple is selected for each State. The sample is selected to represent all pri vate industries in the States and territories. The sample size for the survey is dependent upon (1) the characteristics for which estimates are needed; (2) the industries for which estimates are desired; (3) the charac teristics o f the population being sampled; (4) the target reliability of the estimates; and (5) the survey design employed. While there are many characteristics upon which the sample design could be based, the total recorded case incidence rate is used because it is one of the most important characteristics and the least variable; therefore, it re quires the smallest sample size. The survey is based on stratified random sampling with a Neyman allocation and a ratio estimator. The characteristics used to stratify the establishments are the Standard Industrial Classification (sic) code and size o f employment. Definitions Recordable occupational injuries and illnesses are: (1) occupational deaths, regardless of the time between injury and death, or the length of the illness; or (2) nonfatal occupational illnesses; or (3) nonfatal occupational injuries which involve one or more of the following: loss of consciousness, restriction o f work or motion, transfer to another job, or medical treatment (other than first aid). O ccupational injury is any injury such as a cut, fracture, sprain, ampu tation, and so forth, which results from a work accident or from exposure involving a single incident in the work environment. Occupational illness is an abnormal condition or disorder, other than one resulting from an occupational injury, caused by exposure to environ mental factors associated with employment. It includes acute and chronic illnesses or disease which may be caused by inhalation, absorption, inges tion, or direct contact. Lost workday cases are cases which involve days away from work, or days o f restricted work activity, or both. Lost workday cases involving restricted work activity are those cases which result in restricted work activity only. Lost workdays away from work are the number of workdays (consec utive or not) on which the employee would have worked but could not because o f occupational injury or illness. Lost workdays—restricted work activity are the number of workdays (consecutive or not) on which, because of injury or illness: (1) the em ployee was assigned to another job on a temporary basis; or (2) the em https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ployee worked at a permanent job less than full time; or (3) the employee worked at a permanently assigned job but could not perform all duties normally connected with it. The number of days away from work or days of restricted work activity does not include the day of injury or onset of illness or any days on which the employee would not have worked even though able to work. Incidence rates represent the number of injuries and/or illnesses or lost workdays per 100 full-time workers. Notes on the data Estimates are made for industries and employment-size classes and for severity classification: fatalities, lost workday cases, and nonfatal cases without lost workdays. Lost workday cases are separated into those where the employee would have worked but could not and those in which work activity was restricted. Estimates o f the number of cases and the number of days lost are made for both categories. Most o f the estimates are in the form of incidence rates, defined as the number of injuries and illnesses, or lost workdays, per 100 full-time em ployees. For this purpose, 200,000 employee hours represent 100 em ployee years (2,000 hours per employee). Only a few of the available measures are included in the Handbook of Labor Statistics . Full detail is presented in the annual bulletin, Occupational Injuries and Illnesses in the United States, by Industry. Comparable data for individual States are available from the bls Office o f Occupational Safety and Health Statistics. Mining and railroad data are furnished to b l s by the Mine Safety and Health Administration and the Federal Railroad Administration, respec tively. Data from these organizations are included in b l s and State publica tions. Federal employee experience is compiled and published by the Occu pational Safety and Health Administration. Data on State and local government employees are collected by about half of the States and territo ries; these data are not compiled nationally. Additional sources of information The Supplementary Data System provides detailed information describ ing various factors associated with work-related injuries and illnesses. These data are obtained from information reported by employers to State workers’ compensation agencies. The Work Injury Report program exam ines selected types of accidents through an employee survey which focuses on the circumstances surrounding the injury. These data are not included in the Handbook of Labor Statistics but are available from the b l s Office of Occupational Safety and Health Statistics. The definitions of occupational injuries and illnesses and lost workdays are from Recordkeeping Requirements under the Occupational Safety and Health Act of 1970. For additional data, see Occupational Injuries and Illnesses in the United States, by Industry, annual Bureau o f Labor Statistics bulletin; b l s Handbook of Methods , Bulletin 2134-1 (Bureau of Labor Statistics, 1982), chapter 17; Handbook of Labor Statistics , Bulletin 2217 (Bureau of Labor Statistics, 1985), pp. 411-14; annual reports in the Monthly Labor Review, and annual U .S. Department of Labor press releases. 59 MONTHLY LABOR REVIEW March 1987 • Current Labor Statistics: Comparative Indicators 1. Labor market indicators 1986 1985 Selected indicators 1985 1986 I IV III II I IV III II Employment data Employment status of the civilian noninstitutionalized population (household survey)’ Labor force participation r a te .............................................................. Employment-population r a tio ............................................................... Unemployment rate .............................................................................. M e n ....................................................................................................... 16 to 24 years ................................................................................. 25 years and o v e r ........................................................................... Women ................................................................................................. 16 to 24 years ................................................................................. 25 years and o v e r ........................................................................... Unemployment rate, 15 weeks and o v e r ....................................... 65.1 60.5 7.1 6.9 13.5 5.3 7.3 13.1 5.7 1.9 65.2 60.6 7.1 7.0 14.2 5.3 7.2 13.1 5.7 1.9 65.3 60.8 6.9 6.9 13.7 5.4 6.9 2.0 64.9 60.3 7.1 6.9 14.2 5.2 7.3 13.1 5.6 1.9 97,295 80,958 24,947 19,323 72,347 97,897 81,414 24,866 19,241 73,031 98,668 82,069 24,937 19,261 73,731 99,403 82,731 25,028 19,284 74,375 99,848 83,144 24,952 19,194 74,896 100,316 83,650 24,872 19,116 75,444 101,062 84,167 24,892 19,152 76,170 35.0 40.4 3.3 34.9 40.4 3.2 34.9 40.6 3.3 34.9 40.8 3.5 34.9 40.7 3.4 34.8 40.7 3.4 34.7 40.7 3.5 34.7 40.8 3.5 1.3 .7 65.3 60.7 7.0 6.9 13.7 5.4 7.1 2.0 5.5 1.9 6.0 2.1 Total ........................................................................................................... Private sector ......................................................................................... G oods-producing.................................................................................... M anufacturing..................................................................................... Service-producing ................................................................................. 97,614 81,199 24,930 19,314 72,684 100,165 83,430 24,938 19,186 75,227 96,581 80,341 24,970 19,439 71,611 Average hours: Private sector ......................................................................................... Manufacturing .................................................................................. O vertim e........................................................................................... 34.9 40.5 3.3 34.8 40.7 3.4 Percent change in the ECI, compensation: All workers (excluding farm, household, and Federal w o rk e rs )...... Private industry workers ..................................................................... Goods-producing2 ............................................................................ Service-producing2 .......................................................................... State and local government w o rk e rs ................................................ 4.3 3.9 3.4 4.4 5.7 3.6 3.2 3.1 3.2 5.2 Workers by bargaining status (private industry): U n io n ...................................................................................................... Nonunion ............................................................................................... 2.6 2.1 4.6 3.6 12.8 65.4 60.9 6.9 6.9 13.4 5.4 64.7 60.1 7.2 7.0 14.0 5.3 7.4 12.9 5.9 64.8 60.1 7.3 7.1 14.2 5.4 7.5 13.1 64.8 60.1 7.2 7.0 14.1 5.3 7.4 13.0 5.9 64.7 60.0 7.2 7.0 14,0 5.3 7.5 12.9 6.0 2.0 12.6 5.4 1.9 6.8 12.5 5.3 1.8 Employment, nonagricultural (payroll data), in thousands:1 Employment Cost Index ’ Quarterly data seasonally adjusted. 2 Goods-producing industries include mining, construction, and manufacturing. Service- 60 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1.6 .6 1.8 1.2 1.5 1.0 1.2 .8 .7 1.0 .2 3.4 .7 .6 1.0 1.4 1.6 1.3 .8 .6 .6 .6 .5 .7 .5 .6 1.1 1.1 1.1 1.1 1.0 .8 .9 .6 .6 1.0 1.2 .2 producing industries include all other private sector industries. .7 .9 1.1 .7 .6 .8 2.8 .6 .6 .5 .6 .8 .5 .3 .7 .8 2. Annual and quarterly percent changes In compensation, prices, and productivity 1985 Selected measures 1985 1986 1986 I II III IV I II III IV Compensation data 1, 2 Employment Cost Index-com pensation (wages, salaries, benefits): Civilian nonfarm ................................. Private nonfarm ..................................... Employment Cost Index-wages and salaries Civilian nonfarm ........................................ Private n o n fa rm .............................................. 4.3 3.9 3.6 3.2 4.4 4.1 3.5 3.1 1.3 1.2 1.2 1.2 1.6 0.7 .8 0.6 .6 .6 .6 1.3 .9 1.7 1.3 1.1 1.1 1.1 1.0 1.0 .8 .8 1.1 1.1 0.6 .6 6 .9 .7 .5 0.7 .7 Price data1 Consumer Price Index (All urban consumers): All ite m s ...... Producer Price Index: Finished g o o d s .......................... Finished consumer g o o d s ......................... Capital equipment ..................................... Intermediate materials, supplies, components ............... Crude m ate rials..................................... 1.1 3.8 1.8 .0 -2 .5 -3 .8 1.5 2.7 -.3 -5.6 1.1 1.0 .7 .7 .4 -.3 1.3 -.4 -3.1 2.1 -4.4 -9 .7 .7 -1.4 -1.4 -1.4 -.5 -4.5 .2 -2.1 .9 -.4 .6 .7 2.5 2.5 2.5 .4 4.3 -3.1 -4.1 .5 .4 -.7 -.7 -.7 -2.9 -7.6 -.9 -1.5 .2 .6 .3 .9 .6 2.0 - 4 -.2 -.2 -.5 Productivity data3 Output per hour of all persons: Business s e c to r................................. Nonfarm business s e c to r........................... Nonfinancial corporations 4 ................................ 1.0 .5 1.2 .7 .7 .9 .3 2.7 .8 “ w iaiiyco aio ucv,cmuci- iu - u cu o iiluci uMctiiyu. wuaneny cnanges are calculated using the last month of each quarter. Compensation and price data are not seasonally adjusted and the price data are not compounded. 2 Excludes Federal and private household workers. 3 Annual rates of change are computed by comparing annual averages. 3.4 1.8 2.2 -3.2 -3.5 -2.8 2.2 4.9 3.3 4.3 -.5 .5 .5 -.3 -.4 -.3 -2.3 -1.7 .2 dexes. The data are seasonally adjusted. Output per hour of all employees. - Data not available. 4 Alternative measures of wage and compensation changes Quarterly average 1S85 C o m p o n e n ts III Average hourly compensation:1 All persons, business sector............................................. All employees, nonfarm business sector......................... Employment Cost Index-compensation: Civilian nonfarm 2 .................................................... Private nonfarm .............................................................. Union.............................................................. Nonunion................................................................... State and local governments.......................................... Employment Cost Index—wages and salaries: Civilian nonfarm2 ............................................................ Private nonfarm ......................................................... Union........................................................... "1 .". Nonunion................................................................... 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:6 First-year adjustment.......................................................... Annual rate over life of contract........................ 1 Seasonally adjusted. 2 Excludes Federal and household workers. 3 Limited to major collective bargaining units most recent data are preliminary. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Four quarters ended- 1986 IV I 4.4 3.2 3.8 3.7 1.6 1.3 .8 .5 1.4 3.4 .7 .6 .6 .6 II 2.5 3.1 1985 III 2.8 IV IV 4.4 3.9 3.9 3.6 3.4 3.1 2.8 3.0 2.7 2.7 .7 1.1 .6 .6 4.9 4.7 3.2 5.4 4.3 3.9 4.1 3.8 2.9 4.2 5.5 4.0 3.8 2.5 4.2 5.8 3.6 3.2 2.3 3.5 5.2 3.6 3.2 4.2 3.9 3.2 4.3 5.5 3.1 4.1 3.7 2.5 4.1 5.7 2.9 .5 3.5 3.1 2.3 3.4 5.4 2.3 .5 .8 .2 .9 .6 .8 .7 .5 .8 .6 .5 .2 .7 3.2 .5 .7 .7 .5 1.5 2.0 1.5 2.0 2.0 .7 .7 3.0 1.4 .6 1.2 .9 .4 .9 .4 .7 .2 .6 (4) .4 <4) .1 .5 (4) 1.3 1.6 .3 .7 .8 2.8 1.1 .7 .6 1.9 of 1,000 workers or more. The III 4.4 4.0 1.1 1.1 1.0 1.2 1.0 1.0 1.0 .7 1.1 1.0 .6 .2 .8 II 2.4 3.1 3.1 .5 .4 I 2.9 2.3 2.0 1.2 .2 IV 2.3 .6 .6 .5 .6 .8 .5 .1 .2 .1 2.1 1.7 1.3 .9 1.5 3.5 III 1986 .8 1.2 2.6 6.0 4.6 5.7 5.0 4.8 3.6 5.4 5.6 3.5 .9 4.4 4.1 3.1 4.6 5.6 3.3 .7 .2 .2 .1 2.0 2.1 2.4 2.5 2.3 2.7 2.7 2.4 3.1 2.7 2.6 1.8 .8 1.8 .7 2.7 .6 .8 2.0 1.7 2.5 2.3 2.5 1.8 .7 1.6 2.2 1.4 2.0 1.6 .2 1.2 1.7 .9 1.4 2.1 3.6 5.2 3.5 3.1 2.0 3.5 5.4 2.3 .5 1.7 .2 1.2 1.8 1.1 1.6 4 Data round to zero. 6 Limited to major collective bargaining units of 5,000 workers or more. The most recent data are preliminary. MONTHLY LABOR REVIEW 4. March 1987 • Current Labor Statistics: Employment Data Employment status of the total population, by sex, monthly data seasonally adjusted (Numbers in thousands) 1987 1986 Annual average Employment status 1985 1986 Jan. Feb. Apr. Mar. May June Sept. Aug. July Oct. Jan. Dec. Nov. TOTAL Noninstitutional population 1, 2 ....... Labor force2 ..................................... Participation rate 3 ................. Total employed 2 .......................... Employment-population Resident Armed Forces 1 ....... Civilian e m p lo ye d ...................... A g ricu ltu re ............................... Nonagricultural in dustries..... Unem ployed.................................. Unemployment rate 5 ............ Not in labor fo r c e ........................... 183,575 120,782 65.8 112,759 179,912 117,167 65.1 108,856 182,293 119,540 65.6 111,303 181,361 118,485 65.3 110,583 181,512 118,733 65.4 110,248 181,678 118,880 65.4 110,500 181,843 118,987 65.4 110,664 181,998 119,274 65.5 110,852 182,183 119,685 65.7 111,293 182,354 119,789 65.7 111,559 182,525 119,821 65.6 111,764 182,713 119,988 65.7 111,703 182,935 120,163 65.7 111,941 183,114 120,426 65.6 112,183 183,297 120,336 65.7 112,387 60.5 1,706 107,150 3,179 103,971 8,312 7.1 62,744 61.1 1,706 109,597 3,163 106,434 8,237 6.9 62,752 61.0 1,691 108,892 3,280 105,612 7,902 6.7 62,876 60.7 1,691 108,557 3,105 105,452 8,485 7.1 62,779 60.8 1,693 108,807 3,252 105,555 8,380 7.0 62,798 60.9 1,695 108,969 3,199 105,770 8,323 7.0 62,856 60.9 1,687 109,165 3,151 106,014 8,422 7.1 62,724 61.1 1,680 109,613 3,164 106,449 8,392 7.0 62,498 61.2 1,672 109,887 3,124 106,763 8,230 6.9 62,565 61.2 1,697 110,067 3,057 107,010 8,057 6.7 62,704 61.1 1,716 109,987 3,142 106,845 8,285 6.9 62,725 61.2 1,749 110,192 3,162 107,030 61.3 1,751 110,432 3,215 107,217 8,243 61.3 1,750 110,637 3,161 107,476 7,949 62,772 62,688 62,961 62,793 86,025 65,967 76.7 61,447 87,349 66,973 76.7 62,443 86,882 76.7 62,392 86,954 66,737 76.7 62,142 87,035 66,793 76.7 62,221 87,120 66,770 76.6 62,253 87,195 66,854 76.7 62,201 87,288 66,937 76.7 62,318 87,373 66,968 76.6 62,402 87,460 66,911 76,5 62,483 87,556 67,128 76.7 62,528 87,682 67,130 76.6 62,565 87,773 67,407 76.8 62,833 87,868 67,425 76.7 62,986 88,020 67,672 76.9 63,187 71.4 1,556 59,891 4,521 6.9 71.5 1,551 60,892 4,530 71.5 1,539 60,603 4,595 6.9 71.5 1,540 60,681 4,572 71.5 1,541 60,712 4,517 71.4 1,525 60,793 4,619 6.9 71.4 1,541 60,942 4,428 71.6 1,592 61,241 4,574 71.7 1,593 61,393 4,439 71.8 1,591 61,596 4,484 6.6 71.4 1,560 60,968 4,600 6.9 71.4 1,590 60,975 4,565 6.8 71.3 1,533 60,668 4,653 7.0 71.4 1,518 60,884 4,566 6.8 71.8 1,539 60,853 4,274 6.4 93,886 51,200 54.5 47,409 94,944 52,568 55.4 48,861 94,479 51,819 54.8 48,191 94,558 51,996 55.0 48,106 94,643 52,087 55.0 48,279 94,723 52,217 55.1 48,411 94,803 52,420 55.3 48,651 94,895 52,748 55.6 48,975 94,981 52,821 55.6 49,157 95,065 52,910 55.7 49,281 95,156 52,860 55.6 49,175 95,253 53,033 55.7 49,376 95,341 53,019 55.6 49,350 95,429 52,911 55.4 49,401 95,556 53,110 55.6 49,572 50.5 150 47,259 3,791 7.4 51.5 155 48,706 3,707 7.1 51.0 152 48,039 3,628 7.0 50.9 152 47,954 3,890 7.5 51.0 153 48,126 3,808 7.3 51.1 154 48,257 3,806 7.3 51.3 154 48,497 3,769 7.2 51.6 155 48,820 3,773 7.2 51.8 154 49,003 3,664 6.9 51.8 156 49,125 3,629 6.9 51.7 156 49,019 3,685 7.0 51.8 159 49,217 3,657 6.9 51.8 159 49,191 3,669 6.9 51.8 157 49,244 3,510 51.9 157 49,415 3,538 6.7 8,222 6.8 6.6 6.8 61.4 1,748 111,011 3,145 107,866 8,023 6.6 Men, 16 years and over Noninstitutional population ' , 2 ....... Participation rate 3 .................. Total employed 2 .......................... Employment-population Resident Armed Forces 1 ....... Unem ployed.................................. Unemployment rate 5 ............ 66,666 6.8 6.8 6.8 6.8 6.6 6.6 Women, 16 years and over Noninstitutional population ’ , 2 ....... Participation rate 3 .................. Total employed2 ........................... Employment-population Resident Armed Forces ' ....... Civilian em p lo ye d ...................... Unem ployed.................................. 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. 62 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4 Total employed as a percent of the noninstitutional population. 5 Unemployment as a percent of the labor force (including Forces). the resident Armed 5. Employment status of the civilian population, by sex, age, race and Hispanic origin, monthly data seasonally adjusted (Numbers in thousands) Annual average Employment status 1986 1987 y 1985 1986 178,206 115,461 64.8 107,150 180,587 117,834 65.3 109,597 60.1 8,312 7.2 62,744 60.7 8,237 7.0 62,752 77,195 60,277 78.1 56,562 73.3 2,278 54,284 3,715 Jan. Feb. Mar. Apr. May June July Aug. 179,670 116,794 65.0 108,892 179,821 117,042 65.1 108,557 179,985 117,187 65.1 108,807 180,148 117,292 65.1 108,969 180,311 117,587 65.2 109,165 180,503 118,005 65.4 109,613 180,682 118,117 65.4 109,887 180,828 118,124 65.3 110,067 180,997 118,272 65.3 109,987 60.6 7,902 60.5 8,380 7.2 62,798 60.5 8,323 7.1 62,856 60.5 8,422 7.2 62,724 60.7 8,392 7.1 62,498 60.8 8,230 7.0 62,565 60.9 8,057 62,876 60.4 8,485 7.2 62,779 62,704 60.8 8,285 7.0 62,725 78,523 61,320 78.1 57,569 78,101 61,143 78.3 57,599 78,171 61,092 78.2 57,296 78,236 61,177 78.2 57,388 78,309 61,080 78.0 57,392 78,387 61,158 78.0 57,338 78,484 61,330 78.1 57,522 78,586 61,355 78.1 57,544 78,634 61,219 77.9 57,585 73.3 2,292 55,277 3,751 6.1 73.7 2,340 55,259 3,544 5.8 73.3 2,261 55,035 3,796 73.4 2,389 54,999 3,789 73.3 2,319 55,073 3,688 73.1 2,279 55,059 3,820 73.3 2,309 55,213 3,808 73.2 2,275 55,269 3,811 86,506 47,283 54.7 44,154 87,567 48,589 55.5 45,556 87,112 47,897 55.0 44,952 87,185 48,009 55.1 44,820 87,263 48,065 55.1 44,934 87,355 48,181 55.2 45,094 87,444 48,433 55.4 45,335 87,547 48,739 55.7 45,657 51.0 596 43,558 3,129 52.0 614 44,943 3,032 51.6 677 44,275 2,945 51.4 591 44,229 3,189 51.5 589 44,345 3,131 6.5 51.6 585 44,509 3,087 6.4 51.8 604 44,731 3,098 6.4 Sept. Oct. Nov. Dec. 181,186 118,414 65.4 110,192 181,363 118,675 65.4 110,432 181,547 118,586 65.3 110,637 111,011 60.8 6.9 62,772 60.9 8,243 6.9 62,688 60.9 7,949 6.7 62,961 61.1 8,023 6.7 62,793 78,722 61,412 78.0 57,607 78,802 61,409 77.9 57,595 78,874 61,703 78.2 57,883 78,973 61,826 78.3 58,101 79,132 61,948 78.3 58,227 73.2 2,185 55,400 3,634 5.9 73.2 2,286 55,321 3,805 73.1 2,297 55,298 3,814 73.4 2,303 55,580 3,820 73.6 2,289 55,812 3,725 73.6 2,254 55,974 3,720 87,629 48,879 55.8 45,869 87,689 48,950 55.8 45,956 87,779 48,920 55.7 45,905 87,856 49,014 55.8 46,020 87,933 49,043 55.8 46,067 88,016 48,923 55.6 46,058 88,150 49,161 55.8 46,261 52.2 583 45,074 3,082 6.3 52.3 607 45,262 3,010 52.4 622 45,334 2,994 52.3 614 45,291 3,015 52.4 612 45,408 2,994 52.4 675 45,392 2,976 52.3 621 45,437 2,865 5.9 52.5 628 45,633 2,900 5.9 Jan. TOTAL Civilian noninstitutional population1 ...................................... Civilian labor fo rc e ......................... Participation rate .................. Employed .................................... Employment-population ratio2 ....................................... Unem ployed........................... Unemployment ra te ................ Not in labor force ........................... 6.8 6.8 8,222 181,827 119,034 65.5 Men, 20 years and over Civilian noninstitutional population1 ....................................... Civilian labor fo rc e .......................... Participation rate .................... E m ployed...................................... Employment-population ratio2 ....................................... A g riculture.................................. Nonagricultural industries........ Unem ployed........................ Unemployment ra te ............... 6.2 6.2 6.2 6.0 6.2 6.2 6.2 6.2 6.2 6.2 6.0 6.0 Women, 20 years ond over Civilian noninstitutional population1 ....................................... Civilian labor fo rc e .......................... Participation rate .................... Employed ............................... Employment-population ratio2 ....................................... A g riculture.................................. Nonagricultural industries........ Unem ployed................................. Unemployment r a te ............... 6.6 6.2 6.1 6.6 6.2 6.1 6.2 6.1 6.1 Both sexes, 16 to 19 years Civilian noninstitutional population1 ....................................... Civilian labor fo rc e .......................... Participation rate ................... Employed .................................... Employment-population ratio2 ....................................... A g riculture.................................. Nonagricultural industries........ Unem ployed................................ Unemployment ra te ............... 14,506 7,901 54.5 6,434 14,496 7,926 54.7 6,472 14,458 7,754 53.6 6,341 14,465 7,941 54.9 6,441 14,485 7,945 54.9 6,485 14,484 8,031 55.4 6,483 14,480 7,996 55.2 6,492 14,472 7,936 54.8 6,434 14,467 7,883 54.5 6,474 14,505 7,955 54.8 6,526 14,496 7,940 54.8 6,475 14,527 7,991 55.0 6,577 14,557 7,929 54.5 6,482 14,558 7,837 53.8 6,478 14,545 7,926 54.5 6,524 44.4 305 6,129 1,468 18.6 44.6 258 6,215 1,454 18.3 43.9 263 6,078 1,413 18.2 44.5 253 6,168 1,500 18.9 44.8 274 6,211 1,460 18.4 44.8 295 6,188 1,548 19.3 44.8 268 6,224 1,504 18.8 44.5 272 6,162 1,502 18.9 44.8 242 6,232 1,409 17.9 45.0 250 6,276 1,429 18.0 44.7 242 6,233 1,465 18.5 45.3 253 6,324 1,414 17.7 44.5 237 6,245 1,447 18.2 44.5 251 6,227 1,359 17.3 44.9 264 6,260 1,402 17.7 153,679 99,926 65.0 93,736 155,432 101,801 65.5 95,660 154,784 100,993 65.2 95,099 154,889 101,178 65.3 94,780 155,005 101,208 65.3 94,955 155,122 101,237 65.3 95,095 155,236 101,531 65.4 95,283 155,376 101,946 65.6 95,720 155,502 102,015 65.6 95,861 155,604 155,723 102,158 65.6 96,000 155,856 102,297 65.6 96,147 155,979 102,455 65.7 96,281 156,111 102,503 65.7 96,533 156,313 102,746 65.7 96,717 61.0 6,191 61.5 6,140 61.4 5,894 5.8 61.2 6,398 6.3 61.3 6,253 61.3 6,142 61.4 6,248 61.6 6,226 61.6 6,154 61.8 5,945 5.8 61.6 6,158 61.7 6,150 61.7 6,174 61.8 5,970 5.8 61.9 6,029 5.9 20,002 20,028 12,553 62.7 10,716 20,056 12,652 63.1 10,799 20,089 12,720 63.3 10,895 20,120 12,611 63.0 10,822 12,719 63.2 10,910 20,152 12,707 63.1 10,968 20,187 12,831 63.6 10,997 54.1 1,789 14.2 53.5 1,837 14.6 53.8 1,853 14.6 54.2 1,825 14.3 54.2 1,809 14.2 54.4 1,739 13.7 54.5 1,833 14.3 White Civilian noninstitutional population1 ....................................... Civilian labor fo rc e .......................... Participation rate ................... Employed ............................ Employment-population ratio2 ....................................... Unem ployed................................ Unemployment r a te ............... 6.2 6.0 6.2 6.1 6.2 6.1 6.0 102,122 65.6 96,177 6.0 6.0 6.0 Black Civilian noninstitutional population1 ....................................... Civilian labor fo rc e .......................... Participation rate ................... Employed ...................................... Employment-population ratio2 ....................................... U nem ployed.................................. Unemployment r a te ............... 19,664 12,364 62.9 10,501 19,989 12,654 63.3 10,814 19,837 12,561 63.3 10,723 19,863 12,572 63.3 10,704 19,889 12,634 63.5 10,770 19,916 12,687 63.7 10,809 19,943 12,721 63.8 10,839 19,974 12,712 63.6 10,818 53.4 1,864 15.1 54.1 1,840 14.5 54.1 1,838 14.6 1,868 53.9 54.2 1,864 14.8 54.3 1,878 14.8 54.3 1,882 14.8 54.2 1,894 14.9 14.9 See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 63 MONTHLY LABOR REVIEW March 1987 • Current Labor Statistics: Employment Data 5. Continued— Employment status of the civilian population, by sex, age, race and Hispanic origin, monthly data seasonally adjusted (Numbers in thousands) 1987 1986 Annual average Employment status 1985 1986 Jan. Feb. Mar. Apr. May 11,915 7,698 64.6 6,888 12,344 8,076 65.4 7,219 12,148 7,796 64.2 6,994 12,184 7,922 65.0 6,991 12,219 7,926 64.9 7,095 12,255 7,969 65.0 7,129 12,290 8,006 65.1 7,136 57.8 811 10.5 58.5 857 10.6 57.6 802 10.3 57.4 931 11.8 58.1 831 10.5 58.2 840 10.5 58.1 870 10.9 July Aug. 12,326 8,085 65.6 7,224 12,362 8,121 65.7 7,269 12,397 8,130 65.6 7,248 58.6 861 10.6 58.8 852 10.5 58.5 882 10.8 June Oct. Nov. Dec. Jan. 12,432 8,179 65.8 7,286 12,469 8,200 65.8 7,345 12,505 8,226 65.8 7,437 12,540 8,320 66.3 7,446 12,653 8,431 58.6 893 10.9 58.9 855 10.4 59.5 789 9.6 59.4 874 10.5 59.6 893 Sept: Hispanic origin Civilian noninstitutional population1 ....................................... Participation rate .................... E m p lo ye d ...................................... Employment-population U nem ployed.................................. Unemployment r a te ............... 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. 7,538 10.6 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) 1987 1986 Annual average Selected categories 1985 1986 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. CHARACTERISTIC Civilian employed, 16 years and Married men, spouse present .. Married women, spouse Women who maintain families . 107,150 59,891 47,259 39,248 109,597 60,892 48,706 39,658 108,892 60,853 48,039 39,558 108,557 60,603 47,954 39,363 108,807 60,681 48,126 39,396 108,969 60,712 48,257 39,504 109,165 60,668 48,497 39,582 109,613 60,793 48,820 39,613 109,887 60,884 49,003 39,634 110,067 60,942 49,125 39,735 109,987 60,968 49,019 39,691 110,192 60,975 49,217 39,780 110,432 61,241 49,191 39,952 110,637 61,393 49,244 40,093 111,011 61,596 49,415 40,102 26,336 5,597 27,144 5,837 26,820 5,703 26,695 5,723 26,761 5,754 26,889 5,799 27,016 5,734 27,354 5,719 27,474 5,812 27,388 5,832 27,249 5,926 27,323 6,016 27,333 6,041 27,400 6,005 27,525 5,985 1,535 1,458 185 1,547 1,447 169 1,642 1,482 165 1,512 1,444 158 1,655 1,450 169 1,539 1,467 173 1,489 1,472 177 1,508 1,492 163 1,504 1,434 171 1,509 1,387 174 1,521 1,460 159 1,562 1,451 164 1,582 1,425 198 1,621 1,400 152 1,650 1,370 136 95,871 16,031 79,841 1,249 78,592 7,811 289 98,299 16,342 81,957 1,235 80,722 7,881 255 97,752 16,333 81,419 1,245 80,174 7,693 271 97,500 16,155 81,345 1,208 80,137 7,711 261 97,661 16,160 81,501 1,227 80,274 7,713 243 97,858 16,231 81,627 1,309 80,318 7,634 251 98,047 16,333 81,714 1,261 80,453 7,793 235 98,314 16,377 81,937 1,267 80,670 7,832 236 98,312 16,582 81,730 1,241 80,489 8,019 258 98,586 16,446 82,140 1,247 80,893 7,956 271 98,692 16,333 82,359 1,229 81,130 7,939 275 98,846 16,264 82,582 1,216 81,366 7,993 265 98,869 16,457 82,412 1,183 81,229 8,179 252 99,164 16,443 82,721 1,189 81,532 8,056 239 99,550 .16,412 83,138 1,269 81,869 8,192 246 5,590 2,430 2,819 13,489 5,588 2,456 2,800 13,935 5,551 2,377 2,870 13,877 5,446 2,385 2,724 13,800 5,548 2,352 2,908 13,778 5,853 2,534 2,922 13,900 5,825 2,605 2,843 13,853 5,538 2,437 2,813 14,142 5,442 2,473 2,661 13,967 5,471 2,417 2,741 13,981 5,544 2,472 2,772 13,922 5,740 2,481 2,826 14,178 5,563 2,510 2,714 14,021 5,596 2,444 2,867 13,877 5,505 2,473 2,695 14,170 5,334 2,273 2,730 13,038 5,345 2,305 2,719 13,502 5,297 2,231 2,770 13,386 5,214 2,242 2,669 13,354 5,295 2,160 2,819 13,351 5,567 2,382 2,806 13,528 5,569 2,485 2,749 13,412 5,322 2,307 2,727 13,613 5,222 2,317 2,609 13,578 5,269 2,283 2,678 13,606 5,303 2,314 2,710 13,520 5,450 2,314 2,739 13,736 5,319 2,366 2,626 13,567 5,342 2,286 2,765 13,455 5,201 2,281 2,599 13,750 MAJOR INDUSTRY AND CLASS OF WORKER Agriculture: Wage and salary w o rk e rs ........ Self-employed w o rk e rs ............. Unpaid family w o rk e rs .............. Nonagricultural industries: Wage and salary w o rk e rs ........ Private in d u strie s.................... Private households.............. O th e r ...................................... Self-employed w o rke rs ............. Unpaid family w o rk e rs .............. PERSONS AT WORK PART TIME1 All industries: Part time for economic reasons . Slack w o r k .................................. Could only find part-time work Voluntary part t im e ....................... Nonagricultural industries: Part time for economic reasons . Slack w o r k .................................. Could only find part-time work Voluntary part t im e ....................... 1 Excludes persons “ with a job but not at work” during the survey perio 64 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis for such reasons a s vacation, illness, or industrial disputes. 7. Selected unemployment indicators, monthly data seasonally adjusted (Unemployment rates) Annual average 1986 Selected categories 1985 1986 7.2 18.6 7.0 18.3 6.2 6.6 6.1 6.2 White, t o t a l............................... Both sexes, 16 to 19 years . Men, 16 to 19 y e a rs ...... Women, 16 to 19 years Men, 20 years and over ..... Women, 20 years and o v e r . 6.2 15.7 16.5 14.8 5.4 5.7 15.6 16.3 14.9 5.3 5.4 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 o v e r. 15.1 40.2 41.0 39.2 13.2 13.1 Hispanic origin, to ta l. Married men, spouse p re s e n t..... Married women, spouse present . Women who maintain fa m ilie s.... Full-time w o rk e rs ........................... Part-time workers .......................... Unemployed 15 weeks and o v e r. Labor force time lost1 ................... 1987 Jan. Feb. Mar. Apr. May June July 6.8 7.2 18.9 7.2 18.4 7.1 19.3 7.2 18.8 7.1 18.9 7.0 17.9 6.2 6.6 6.2 6.0 6.2 6.2 6.1 6.5 6.4 6.4 6.3 6.2 6.2 5.8 15.1 15.0 15.1 5.0 5.4 6.3 16.0 16.6 15.4 5.4 5.9 6.2 6.1 6.2 6.1 6.0 15.0 15.9 14.1 5.4 5.7 16.3 17.1 15.4 5.2 5.5 15.9 17.0 14.7 5.4 5.5 15.9 17.1 14.6 5.4 5.4 15.2 15.6 14.7 5.4 5.3 14.5 39.3 39.3 39.2 12.9 12.4 14.6 41.5 41.1 41.9 12.9 14.8 42.4 42.6 42.2 12.8 12.3 14.8 41.9 41.2 42.7 12.8 12.5 14.8 40.5 40.5 40.5 12.9 12.7 14.9 39.5 39.7 39.4 13.3 12.7 14.2 38.0 40.5 35.0 12.9 12.2 14.9 40.0 39.5 40.7 13.3 12.5 10.5 10.6 10.3 11.8 4.3 5.6 10.4 6.8 9.3 4.4 5.2 9.8 4.3 5.1 9.9 6.5 8.7 4.5 5.5 9.9 6.9 9.3 1.8 2.0 7.7 8.1 6.8 10.7 7.2 9.5 13.0 7.3 7.4 7.1 5.3 7.8 5.9 3.8 13.8 Aug. Sept. Oct. Nov. Dec. Jan. 6.8 18.0 5.9 7.0 18.5 6.2 6.9 17.7 6.9 18.2 6.7 17.3 6.7 17.7 6.1 6.2 6.2 6.1 6.2 6.1 5.9 5.9 5.8 15.4 16.6 14.2 5.1 5.2 6.0 6.0 6.0 15.9 16.6 15.1 5.4 5.3 15.4 15.7 15.2 5.4 5.2 16.0 16.3 15.7 5.4 5.2 5.8 15.1 15.5 14.6 5.3 5.0 5.9 15.0 16.1 13.8 5.3 5.1 14.6 40.3 38.8 41.9 13.2 12.5 14.6 38.4 38.6 38.3 13.4 12.4 14.3 35.8 37.8 33.8 13.1 12.4 14.2 36.0 35.0 37.0 12.9 12.5 13.7 36.5 36.1 36.9 11.8 12.3 14.3 39.5 36.5 43.2 CHARACTERISTIC Total, all civilian w o rkers.......... Both sexes, 16 to 19 years . Men, 20 years and o v e r ..... Women, 20 years and o v e r. 6.0 6.6 2.0 8.1 9.1 1.9 7.9 7.2 9.5 13.1 7.7 7.6 7.8 5.1 7.6 5.6 3.9 13.2 7.0 13.5 13.1 7.1 6.9 7.4 5.1 7.6 5.5 3.6 12.5 18.2 5.8 10.5 4.5 5.5 10.1 6.8 9.1 1.9 8.1 4.2 5.3 9.5 6.7 9.4 12.1 10.6 4.4 5.3 10.8 6.6 1.8 8.1 6.9 9.1 1.9 8.2 4.5 5.2 10.0 6.7 9.1 1.9 8.1 9.2 1.9 7.8 6.4 9.3 1.9 7.7 7.1 12.4 12.3 6.9 6.9 6.9 5.5 7.9 5.8 3.6 13.4 7.2 13.6 13.0 7.4 7.3 7.5 5.3 7.9 5.5 3.6 15.3 7.1 17.3 12.4 7.2 7.0 7.5 5.4 7.7 5.5 3.6 13.2 7.1 16.6 13.0 6.9 6.7 7.2 5.5 7.8 5.7 3.3 11.4 6.9 16.6 12.4 6.9 6.8 6.9 4.8 7.5 5.6 3.3 13.3 10.1 4.4 5.2 9.5 4.2 5.1 10.1 6.0 7.9 4.6 5.0 8.9 6.6 9.2 1.8 7.8 7.0 13.9 12.9 7.0 6.5 7.7 4.7 7.6 5.6 3.5 12.9 7.0 14.5 13.8 7.3 7.2 7.3 5.2 7.4 5.4 3.7 11.9 6.6 9.3 2.0 12.8 10.6 10.4 4.3 5.1 9.8 12.2 4.5 5.0 9.7 6.6 9.1 1.9 7.7 4.3 4.8 9.8 6.3 8.8 1.8 7.6 4.2 4.8 9.8 6.4 9.0 1.8 7.6 INDUSTRY Nonagricultural private wage and salary workers .... M ining........................................................................ C onstruction............................................................. Manufacturing .......................................................... Durable g o o d s ....................................................... Nondurable g o o d s ................................................ Transportation and public utilities ........................ Wholesale and retail tra d e .................................... Finance and service in dustries............................. Government w o rk e rs .................................................... Agricultural wage and salary workers ..................... 12.8 7.1 7.0 7.2 4.5 7.3 5.3 3.5 11.5 7.1 10.5 13.0 7.2 6.9 7.6 5.8 7.7 5.6 3.9 12.1 7.0 14.5 15.1 7.1 6.6 7.9 4.4 7.2 5.4 3.6 10.1 6.8 14.1 13.7 6.9 6.4 7.7 4.6 7.2 5.1 3.3 11.5 6.7 14.0 12.2 6.8 6.8 6.8 4.8 7.5 5.2 3.6 11.6 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 65 MONTHLY LABOR REVIEW 8. March 1987 • Current Labor Statistics: Employment Data Unemployment rates by sex and age, monthly data seasonally adjusted (Civilian workers) Annual average 1987 1986 Sex and age Feb. Jan. 1986 1985 Mar. Apr. June May Dec. Nov. Oct. Sept. Aug. July Jan. 6.7 13.1 17.7 Total, 16 years and o v e r ............ 16 to 24 y e a rs ........................... 16 to 19 y e a rs ........................ 16 to 17 years .................... 18 to 19 y e a r s .................... 20 to 24 y e a rs ....................... 25 years and o v e r .................... 25 to 54 years .................... 55 years and o v e r ............. 7.2 13.6 18.6 21 0 17.0 11.1 5.6 5.8 4.1 7.0 13.3 18.3 20.2 17.0 10.7 5.4 5.7 3.9 6.8 13.1 18.2 21.0 16.6 10.5 5.2 5.5 3.9 7.2 13.6 18.9 21.6 17.1 10.9 5.6 5.9 4.3 7.2 13.3 18.4 19.8 17.2 10.7 5.6 5.9 4.2 7.1 13.7 19.3 20.8 18.4 10.8 5.4 5.7 3.9 7.2 13.8 18.8 20.8 17.4 11.2 5.5 5.9 3.7 7.1 13.5 18.9 20.7 17.5 10.7 5.5 5.9 3.8 7.0 13.2 17.9 19.8 16.2 10.8 5.4 5.7 3.8 6.8 12.9 18.0 19.8 16.8 10.3 5.4 5.7 3.7 7.0 13.6 18.5 20.0 17.2 11.1 5.4 5.6 4.0 6.9 13.0 17.7 19.3 16.5 10.5 5.5 5.7 4.1 6.9 12.9 18.2 20.6 16.7 10.2 5.5 5.8 3.8 6.7 12.9 17.3 18.8 16.3 10.7 5.2 5.5 3.5 Men, 16 years and o v e r ...... 16 to 24 years .................... 16 to 19 y e a rs ................. 16 to 17 y e a rs ............... 18 to 19 y e a rs .............. 20 to 24 y e a rs.................. 25 years and o v e r ............. 25 to 54 y e a rs .............. 55 years and o v e r........ 7.0 14.1 19.5 21.9 17.9 11.4 5.3 5.6 4.1 6.9 13.7 19.0 20.8 17.7 11.0 5.4 5.6 4.1 6.6 13.1 18.3 21.3 16.8 10.5 5.1 5.4 3.9 7.0 13.6 19.5 22.9 17.2 10.8 5.5 5.7 4.3 7.0 13.7 19.2 20.5 18.3 11.0 5.4 5.7 4.1 6.9 14.2 20.0 21.1 19.2 11.3 5.2 5.5 4.0 7.1 14.5 20.0 21.3 19.1 11.7 5.4 5.7 3.9 7.1 13.9 19.9 20.0 19.4 10.9 5.4 5.7 4.1 7.0 13.6 18.4 20.3 16.7 11.1 5.4 5.7 4.0 6.8 13.3 19.1 20.9 18.0 10.3 5.3 5.6 4.1 7.0 14.3 19.1 21.0 17.5 11.9 5.4 5.5 4.2 7.0 13.2 18.2 19.8 17.0 10.7 5.5 5.7 4.4 6.9 13.4 18.3 21.3 16.2 10.9 5.5 5.7 4.1 6.7 13.4 17.8 19.1 17.0 11.3 5.2 5.5 4.0 6.8 13.4 18.5 21.4 16.9 10.7 5.4 5.7 3.5 Women, 16 years and over 16 to 24 y e a rs .................. 16 to 19 y e a rs ............... 16 to 17 years ........... 18 to 19 years ............ 20 to 24 y e a rs ............... 25 years and o v e r............ 25 to 54 years ........... 55 years and o v e r ..... 7.4 13.0 17.6 20.0 16.0 10.7 5.9 6.2 4.1 7.1 12.8 17.6 19.6 16.3 10.3 5.5 5.9 3.6 7.0 13.1 18.1 20.6 16.4 10.6 5.4 5.6 3.9 7.5 13.5 18.3 20.1 17.1 11.0 5.8 6.1 4.3 7.3 12.8 17.5 19.0 16.2 10.3 5.8 6.1 4.3 7.3 13.1 18.5 20.4 17.6 10.2 5.7 6.0 3.8 7.2 13.1 17.5 20.3 15.5 10.8 5.6 6.0 3.5 7.2 13.0 17.9 21.4 15.6 10.4 5.6 6.0 3.3 7.0 12.7 17.3 19.2 15.6 10.4 5.4 5.8 3.6 6.9 12.4 16.7 18.7 15.4 10.2 5.4 5.8 3.3 7.0 12.8 17.7 18.8 16.9 10.2 5.5 5.8 3.6 6.9 12.7 17.2 18.6 16.0 10.3 5.4 5.7 3.6 6.9 12.4 18.2 19.8 17.2 9.4 5.5 5.8 3.4 6.7 12.4 16.8 18.4 15.7 10.0 5.2 5.5 2.9 6.7 12.7 16.8 18.7 15.3 9. 20.1 16.2 10.7 5.2 5.6 3.2 10.6 5.1 5.5 2.7 Unemployed persons by reason for unemployment, monthly data seasonally adjusted 1985 Other job lo s e rs .......................................................... Job leavers .................................................................... Reentrants ..................................................................... 1986 1987 1986 Annual average Reason for unemployment Apr. Mar. Feb. Jan. June May Sept. Aug. July Jan. Dec. Nov. Oct. 3,947 1,073 2,874 1,056 2,119 1,076 3,890 1,078 3,971 1,036 2,019 1,015 891 2,054 1,084 4,139 1,157 2,982 877 2,256 1,039 4,033 1,090 2,943 1,015 2,160 1,029 3,802 1,143 2,659 977 2,083 1,029 4,147 1,136 3,011 985 2,263 1,073 4,210 1,144 3,066 989 2,196 1,006 4,035 1,057 2,978 1,071 2,188 1,048 4,214 1,118 3,096 979 2,200 1,046 4,272 1,074 3,198 1,009 2,107 1,050 4,063 1,078 2,985 1,025 2,205 989 3,824 1,017 2,807 990 2,199 1,014 4,044 1,029 3,015 1,041 2,145 1,038 3,984 1,072 2,912 1,027 2,190 972 49.8 13.9 35.9 10.6 27.1 12.5 48.9 13.2 35.7 12.3 26.2 12.5 48.2 14.5 33.7 12.4 26.4 13.0 49.0 13.4 35.6 11.6 26.7 12.7 50.1 13.6 36.5 11.8 26.1 12.0 48.4 12.7 35.7 12.8 26.2 12.6 49.9 13.2 36.7 11.6 26.1 12.4 50.6 12.7 37.9 12.0 25.0 12.4 49.1 13.0 36.0 12.4 26.6 11.9 47.6 12.7 35.0 12.3 27.4 12.6 48.9 12.4 36.5 12.6 25.9 12.6 48.7 13.1 35.6 12.6 26.8 11.9 48.1 13.1 35.1 12.9 25.8 13.1 48.9 13.5 35.3 49.6 25.4 12.8 25.7 13.6 3.3 .8 1.8 .9 3.5 .8 1.9 .9 3.6 .8 1.9 .9 3.4 .9 1.9 .9 3.6 .8 1.9 .9 3.6 .9 1.8 .9 3.4 .9 1.9 .8 3.2 .8 1.9 .9 3.4 .9 1.8 .9 3.4 9 1.8 .8 3.3 .9 1.8 .9 3.3 3.3 PERCENT OF UNEMPLOYED Job le avers.................................................................. R eentrants................................................................... New entrants .............................................................. UU. / PERCENT OF CIVILIAN LABOR FORCE 3.6 V8 New e n tra n ts ................................................................. 10. 2.0 .9 3.4 \ .9 1.8 .9 .9 Duration of unemployment, monthly data seasonally adjusted (Numbers in thousands) Jan. 1985 Less than 5 weeks ... 5 to 14 weeks ......... 15 weeks and over .. 15 to 26 weeks .... 27 weeks and over Mean duration in weeks ... Median duration in weeks 66 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1987 1986 Annual average Weeks of unemployment Feb. Mar. Apr. May June July Aug. Sept. Nov. 3,382 2,613 2,217 1,045 1,172 3,355 2,389 2,171 1,023 1,148 3,416 2,530 2,200 1,022 1,178 14.8 7.0 15.0 7.1 15.0 7.0 3,498 2,509 2,305 1,025 1,280 3,448 2,557 2,232 1,045 1,187 3,373 2,505 2,117 1,003 1,114 3,534 2,615 2,332 1,142 1,190 3,536 2,625 2,243 1,078 1,165 3,565 2,650 2,130 982 1,148 3,610 2,671 2,232 1,065 1,167 3,415 2,650 2,299 1,038 1,261 3,399 2,521 2,250 1,058 1,192 3,436 2,407 2,272 1,068 1,204 3,415 2,524 2,373 1,263 3,418 2,563 2,168 950 1,218 15.6 6.8 15.0 6.9 15.0 6.8 15.2 6.9 14.6 6.8 14.7 6.6 14.8 6.8 15.2 7.2 15.1 7.1 15.6 7.1 15.5 7.1 15.2 7.0 1,110 Jan. Oct. 11. Unemployment rates of civilian workers by State, data not seasonally adjusted State Dec. 1985 Dec. 1986 A labam a......................................................... A la s k a ......................................................... A riz o n a ........................................................... Arkansas ............................................................ C a lifornia...................................................... 8.3 10.2 6.1 8.7 6.3 9.5 11.0 71 87 6.3 Colorado ........................................................... Connecticut ...................................................... D e law are............................................................ District of C o lum bia......................................... F lo rid a ................................................................ 6.2 4.6 4.6 8.0 5.6 8.0 3.5 3.1 7.9 4.6 Georgia .............................................................. H aw aii........................................................... Idaho ................................................ Illin o is .................................................. Indiana ............................................................... 6.2 5.1 7.8 8.3 7.8 5.7 4.1 9.1 7.0 6.2 Io w a ............................................................. Kansas ............................................................ K e ntucky............................................................ Louisiana........................................................ M ain e ................................................................ 8.1 5.1 9.5 11.3 4.9 6.3 5.6 8.7 13.7 4.6 M a ryla n d ........................................................... M assachusetts................................................. M ichigan........................................................... M in n e s o ta .......................................................... M ississippi.......................................................... M issouri.............................................................. 4.4 3.9 7.6 6.8 9.4 6.6 4.7 31 7.6 5.6 11.7 6.0 Dec. 1985 Dec. 1986 ft ? fi 0 84 3.0 2.5 New J e rs e y ..................................................... 5.4 87 fi Q 3.9 9.3 6.4 6.1 Ohio .................................................................. 8.5 71 7.9 4.5 4.0 South C a rolina................................................ 6.4 fi 0 5.6 Texas ................................................................ Utah 6.3 5.9 8.7 6.5 V e rm o n t............................................................ V irg in ia .............................................................. 4.6 5.3 4.4 4.9 West V irg inia.................................................... 12.5 7.4 12.1 7.1 8.0 9.0 State NOTE: Some data in this table may differ from data published elsewhere because of the continual updating of the database. 12. Employment of workers on nonagricultural payrolls by State, data not seasonally adjusted (In thousands) Dec. 1985 Nov. 1986 A labam a ................. Alaska .................... A rizo n a ................... A rkansa s................ C alifornia................ 1,449.5 221.8 1,323.8 814.8 11,259.1 1,473.0 213.6 1,376.2 833.7 11,478.9 C o lo ra d o ................ Connecticut ........... D elaw are................. District of Columbia F lo rid a ..................... 1,440.6 1,601.2 300.2 639.2 4,542.4 1,448.0 1,646.1 307.8 645.1 4,685.2 G e o rg ia ................... H a w aii...................... Id a h o ....................... Illin o is ...................... In d ia n a .................... 2,638.9 430.2 343.0 4,794.4 2,220.6 2,735.3 437.0 339.8 4,876.1 2,307.0 Io w a ......................... Kansas .................... K e ntucky................. Louisiana................. M a in e ....................... 1,078.3 978.3 1,271.7 1,600.4 465.8 1,081.8 1,010.9 1,302.3 1,518.4 486.8 M a ryland................. M assachusetts...... M ichigan.................. M inne sota............... M ississippi................ M issouri................... M o n ta n a .................. 1,935.8 2,985.9 3,588.7 1,885.2 857.5 2,131.5 276.7 1,961.6 3,010.5 3,644.4 1,925.8 859.7 2,177.6 277.9 Dec. 1986p p = preliminary NOTE: Some data in this table may differ from data published elsewhere https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis State 1,474.0 N e bra ska.......................................................... 210.3 Nevada ............................................................. 1,379.7 New Ham pshire.............................................. 832.5 11,526.0 New J e rs e y ...................................................... New Mexico .................................................... 1,448.8 New Y o rk .......................................................... 1,654.3 North Carolina ............................ 310.4 North Dakota ................ 647.0 4,737.9 Ohio .............................................................. O klaho m a....................................................... 2,746.5 O reg on.............................................................. 441.0 Pennsylvania................................................... 336.6 Rhode Isla n d ................................................... 4,872.5 2,307.3 South C a rolina................................................ South D a k o ta .................................................. 1,075.5 Tennessee ................................................... 1,001.0 Texas ...................................................... 1,304.0 Utah .................................................................. 1,512.2 486.7 V e rm o n t................................................ V irg in ia ................. ........................................ 1,968.ol Washington ...................................................... 3,028.6 West V irg inia................................................... 3,635.1 W iscon sin............................................... 1,916.4 859.8 W yom ing........................................................... 2,168.3 Puerto R ic o ...................................................... 275.6 Virgin Islands .................................................. Dec. 1985 Nov. 1986 Dec. 1986p 648.9 453.1 482.8 670.5 474.9 496.8 665.4 475.0 499.6 3,471.9 526.9 7,909.8 2,706.7 251.2 3,582.3 527.1 8,056.6 2,781.3 251.6 3,586.4 528.4 8,074.3 2,785.4 250.9 4,483.7 1,177.1 1,047.1 4,824.9 431.4 4,602.2 1,158.8 1,077.4 4,894.3 437.9 4,605.7 1,162.4 1,072.8 4,888.0 438.2 1,317.5 247.1 1,900.9 6,766.7 638.1 1,353.9 254.1 1,981.8 6,687.2 644.8 1,357.9 251.5 1,991.5 6,694.9 645.5 232.2 2,532.1 1,735.8 600.9 2,001.0 238.4 2,620.2 1,784.3 601.0 2,049.6 241.5 2,626.5 1,779.7 600.6 2,041.3 201.9 702.8 36.8 194.2 716.5 37.1 191.8 727.1 37.3 because of the continual updating of the database. MONTHLY LABOR REVIEW March 1987 • Current Labor Statistics: Employment Data 13. Employment of workers on nonagricultura! payrolls by industry, monthly data seasonally adjusted (In thousands) 1985 1986 1987 1986 Annual average Industry Jan. Feb. Mar. Nov. Dec.p Jan.p Apr. May June July Aug. Sept. Oct. 99,843 83,161 100,105 83,508 00,283 83,655 100,560 83,786 00,826 83,956 101,068 84,178 01,293 84,368 101,741 84,830 TOTAL ............................... PRIVATE SECTOR................. 97,614 81,199 00,165 83,430 99,296 82,659 99,429 82,748 99,484 82,785 99,783 83,072 99,918 83,198 GOODS-PRODUCING ................ Mining................................... 24,930 930 585 24,938 792 464 25,101 897 556 25,038 880 541 24,945 852 518 25,038 821 488 24,965 790 461 24,854 772 446 24,869 768 442 24,888 753 431 24,858 743 422 24,865 746 423 24,891 742 420 24,920 740 413 25,054 729 410 4,687 1,251 4,961 1,307 4,901 1,330 4,864 1,320 4,838 1,298 4,972 1,315 4,974 1,314 4,947 1,299 4,980 1,299 5,012 1,306 5,010 1,301 5,001 1,302 4,993 1,307 4,997 1,296 5,139 1,344 19,314 13,130 19,186 13,023 19,303 13,111 19,294 13,097 19,255 13,061 19,245 13,060 19,201 13,025 19,135 12,979 19,121 12,961 19,123 12,971 19,105 12,960 19,118 12,974 19,156 13,020 19,183 13,051 19,186 13,059 11,516 7,660 11,345 7,495 11,466 7,595 11,455 7,579 11,418 7,545 11,415 7,547 11,378 7,519 11,307 7,462 11,294 7,441 11,302 7,458 11,271 7,438 11,266 7,435 11,282 7,452 11,286 7,463 11,272 7,451 700 493 591 813 727 497 595 768 716 494 596 798 716 494 597 795 715 493 594 787 719 494 600 785 719 496 599 780 721 496 597 761 724 498 593 758 729 499 592 751 734 500 594 749 737 500 590 749 743 500 591 751 747 502 593 752 753 505 593 740 305 1,468 283 1,439 300 1,455 299 1,452 293 1,450 291 1,451 288 1,447 286 1,440 285 1,428 272 1,429 270 1,433 272 1,429 271 1,427 270 1,431 266 1,428 2,082 2,137 2,127 2,118 2,111 2,100 2,089 2,079 2,072 2,044 2,039 2,036 2,030 2,033 2,182 2,165 1,986 828 710 2,161 1,976 820 710 Oil and gas extraction .................. Construction .......................... General building contractors....... Manufacturing........................ Production w o rk e rs ....................... Durable goods....................... Production w o rk e rs ....................... Lumber and wood p ro d u c ts ......... Furniture and fix tu re s ..................... Stone, clay, and glass products ... Primary metal in d u strie s................ Blast furnaces and basic steel products.......................................... Fabricated metal products............ Machinery, except electrica l......... Electrical and electronic equipm ent........................... i........... Transportation equipm ent............. Motor vehicles and equipment .... Instruments and related products Miscellaneous manufacturing in d u strie s........................................ 2,207 1,971 876 723 2,169 1,984 842 717 2,182 1,996 867 724 2,181 1,998 864 725 2,177 1,989 858 726 2,177 1,986 854 723 2,175 1,972 839 721 2,143 1,974 839 717 2,169 1,969 824 713 2,168 1,985 839 713 2,162 1,979 834 713 2,167 1,979 824 713 2,166 1,993 837 710 367 368 370 369 369 369 369 363 364 363 363 365 370 373 369 7,914 5,608 7,798 5,470 7,841 5,528 7,837 5,516 7,839 5,518 7,837 5,516 7,830 5,513 7,823 5,506 7,828 5,517 7,827 5,520 7,821 5,513 7,834 5,522 7,852 5,539 7,874 5,568 7,897 5,588 Food and kindred p ro d u cts .......... Tobacco m anufactures................. Textile mill p ro d u c ts ....................... Apparel and other textile p roducts.......................................... Paper and allied p ro d u c ts ............ 1,608 65 704 1,641 61 709 1,623 64 702 1,631 63 705 1,632 63 707 1,633 63 703 1,640 62 705 1,648 62 707 1,645 62 710 1,642 59 711 1,644 60 709 1,644 59 711 1,654 61 717 1,657 60 719 1,669 59 718 1,125 683 1,115 690 1,133 687 1,122 687 1,117 688 1,119 689 1,113 689 1,106 690 1,108 687 1,108 685 1,110 691 1,113 694 1,112 694 1,124 697 1,119 697 Printing and publishing.................. Chemicals and allied products..... Petroleum and coal p roducts....... Rubber and misc. plastics p roducts.......................................... Leather and leather products ...... 1,435 1,046 178 1,479 1,027 164 1,461 1,034 168 1,467 1,032 167 1,469 1,031 166 1,472 1,028 166 1,474 1,024 166 1,477 1,026 164 1,483 1,025 163 1,481 1,026 163 1,485 1,025 162 1,491 1,023 161 1,493 1,023 160 1,494 1,020 159 1,498 1,025 160 790 166 801 155 802 163 803 162 804 160 800 157 796 154 797 151 792 152 794 152 797 151 805 151 809 151 814 153 817 152 SERVICE-PRODUCING ............. Transportation and public utilities................................. 75,227 74,195 74,391 74,539 74,745 74,953 74,989 75,236 75,395 75,702 75,961 76,177 76,373 76,687 72,684 5,363 3,129 Nondurable goods.................. Production w o rke rs......................... 5,242 3,006 5,286 3,068 5,286 3,056 5,277 3,048 5,280 3,053 5,266 3,040 5,265 3,037 5,167 3,035 5,288 3,057 5,255 3,063 5,316 3,088 5,316 3,094 5,351 3,117 5,359 3,124 2,218 2,230 2,229 2,227 2,226 2,228 2,132 2,231 2,192 2,228 2,222 2,234 2,235 2,234 2,236 5,863 3,485 2,378 5,859 3,485 2,374 5,864 5,859 5,855 5,874 18,030 2,359 2,951 18,065 2,362 2,952 18,143 2,379 2,963 18,197 18,198 18,364 2,968 2,978 3,006 1,977 1,984 1,994 Communication and public 5,740 3,409 2,331 17,360 2,320 2,779 General merchandise s to re s ....... 5,852 3,482 2,371 17,978 2,348 2,932 5,830 3,470 2,360 17,734 2,328 2,880 5,843 3,482 2,361 17,795 2,333 2,891 5,841 3,480 2,361 17,828 2,333 2,901 Automotive dealers and service . L o c a l............................................... 17,851 2,342 2,910 68 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 17,911 2,344 2,917 5,829 3,454 2,375 17,944 2,350 2,932 5,849 3,483 2,366 17,992 2,354 2,938 2,375 1,892 5,715 1,954 5,923 1,929 5,831 1,938 5,854 1,939 5,868 1,940 5,859 1,944 5,889 1,945 5,918 1,950 5,931 1,962 5,923 1,970 5,948 6,304 3,159 1,934 1,211 6,123 3,066 1,878 1,179 6,157 3,082 1,889 1,186 6,184 3,095 1,900 1,189 6,228 3,120 1,910 1,198 6,261 3,137 1,918 1,206 6,295 3,159 1,927 1,209 6,334 3,176 1,945 1,213 6,364 3,192 1,952 1,220 6,388 3,202 1,962 1,224 6,409 6,429 6,469 6,491 5,953 2,979 1,830 1,144 23,072 4,809 6,586 22,585 4,660 6,447 22,638 4,687 6,471 22,707 4,698 6,497 22,825 4,750 6,511 22,924 4,755 6,543 23,072 4,792 6,571 23,176 4,835 6,601 23,255 4,848 6,634 23,300 4,883 6,649 23,359 23,451 23,567 23,684 21,974 4,452 6,310 16,415 2,875 3,848 9,692 16,735 2,900 3,937 9,899 16,637 2,918 3,916 9,803 16,681 2,918 3,924 9,839 16,699 2,923 3,927 9,849 16,711 2,914 3,938 9,859 16,720 2,899 3,936 9,885 16,682 2,875 3,927 9,880 16,597 2,866 3,921 9,810 16,628 2,875 3,919 9,834 16,774 2,901 3,932 9,941 16,870 16,890 16,925 16,911 = preliminary NOTE: See notes on the data for a description of the most recent benchmark revision. p 5,872 3,488 2,384 1,973 Finance, Insurance, and real . 5,864 3,485 2,379 6,677 3,959 10,015 14. Average weekly hours of production or nonsupervisory workers on private nonagricultural payrolls by industry, monthly data seasonally adjusted Industry Annual average 1985 1986 PRIVATE SECTOR 34.9 34.8 CONSTRUCTION...... 37.7 37.5 MANUFACTURING .. 40.5 3.3 Overtime h o u rs ........................................ Lumber and wood pro d u c ts ........................ Furniture and fixtu re s................................... Stone, clay, and glass p ro d u c ts ................. Primary metal in dustries.............................. Blast furnaces and basic steel products Fabricated metal p ro d u c ts .......................... Machinery except electrical ............. Electrical and electronic equipm ent. Transportation equipm ent................. Motor vehicles and equipm ent...... Instruments and related products .... Miscellaneous m anufacturing........... Jan. Feb. 35.0 34.9 40.7 3.4 40.8 3.5 40.7 3.4 41.2 3.5 39.9 39.4 41.9 41.5 41.1 41.3 41.3 3.5 40.2 39.6 42.2 41.9 41.6 41.3 41.5 3.6 40.4 40.0 42.7 41.9 41.7 41.5 41.5 40.6 42.6 43.5 41.0 39.4 41.6 41.0 42.4 42.6 41.1 39.6 Overtime h o u rs............................ Food and kindred p roducts............ Tobacco m anufactures.................... Textile mill p ro d u cts......................... Apparel and other textile products . Paper and allied p ro d u c ts ............... 39.6 3.1 40.0 37.2 39.7 36.4 43.1 39.9 3.3 40.0 37.6 41.2 36.7 43.3 Printing and publishing............. Chemicals and allied products. Petroleum and coal products ... Leather and leather products .. 37.8 41.9 43.0 37.2 Overtime h o u rs . Durable goods.................................. Nondurable goods................... TRANSPORTATION AND PUBLIC UTILITIES . 39.5 WHOLESALE TRADE RETAIL TRADE 29.4 SERVICES ...... 32.5 - Data not available. p = preliminary https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Mar. Apr. May July 34.8 34.8 40.7 3.4 40.7 3.4 40.7 3.4 40.6 3.3 40.6 3.4 41.4 3.5 40.0 39.7 41.9 42.1 41.8 41.5 41.4 3.6 40.2 39.4 41.9 41.9 41.7 41.4 41.3 3.6 40.3 39.1 42.4 41.3 40.5 41.2 41.2 3.4 40.3 39.4 42.3 41.7 41.5 41.1 41.2 3.5 39.9 39.4 42.2 41.6 41.1 41.1 41.6 41.0 42.8 43.6 41.1 41.6 40.9 42.7 43.4 41.2 41.6 41.0 42.7 43.3 41.3 41.8 41.1 42.1 41.9 41.3 41.8 41.0 41.9 41.8 40.9 39.9 3.3 40.1 39.7 3.2 39.8 39.8 3.2 39.9 39.9 3.3 40.2 40.8 36.7 43.6 40.6 36.3 43.5 40.7 36.5 43.5 38.0 42.0 43.7 36.9 38.0 41.9 43.5 38.0 41.8 43.7 38.0 41.9 43.8 39.2 39.4 39.5 38.4 38.5 38.4 29.3 29.3 32.6 32.6 32.5 Aug. 34.7 Sept. Oct. Nov. Dec.p Jan.p 34.7 34.7 34.8 34.6 40.8 3.5 40.8 3.5 40.7 3.5 40.8 3.5 40.8 3.5 40.9 3.6 41.1 3.5 40.1 39.4 42.2 41.3 41.2 41.1 41.4 3.5 40.2 39.9 42.5 41.9 41.5 41.2 41.4 3.6 40.1 40.0 42.5 42.0 41.6 41.5 41.3 3.6 40.3 39.8 42.3 42.3 42.3 41.2 41.4 3.6 40.7 39.6 41.9 42.4 42.5 41.4 41.3 3.5 40.3 39.6 42.1 42.5 42.7 41.1 41.5 3.6 40.5 40.3 42.4 42.7 42.4 41.4 41.7 41.0 42.2 42.4 41.0 41.4 41.1 42.1 42.4 40.8 41.7 41.2 42.6 42.8 41.0 41.7 41.2 42.6 42.7 40.7 41.6 40.9 42.1 42.1 41.1 41.7 41.0 42.3 42.6 41.2 41.6 40.9 42.0 42.3 41.3 42.0 40.8 42.4 42.9 41.4 39.9 3.4 40.2 39.8 3.2 40.0 39.8 3.4 40.0 40.0 3.4 40.3 39.9 3.3 39.7 39.9 3.4 39.8 40.1 3.5 40.0 40.1 3.5 39.9 40.2 3.5 40.0 41.3 36.9 43.0 41.1 36.5 43.2 40.8 36.5 43.1 40.9 36.6 43.2 41.4 36.5 43.5 41.6 36.7 43.0 41.5 36.7 43.0 41.5 36.9 43.2 42.0 37.0 43.2 41.8 37.0 43.6 38.0 41.9 43.6 38.0 42.0 43.4 37.8 41.9 44.0 37.9 41.9 43.5 38.0 42.1 44.3 38.0 42.0 43.4 38.0 42.2 43.7 38.1 42.5 43.8 38.0 42.4 43.8 38.1 42.6 43.8 39.6 39.2 39.2 39.1 39.2 39.1 38.9 39.1 39.3 39.0 38.5 38.5 38.5 38.4 38.3 38.3 38.4 38.2 38.4 38.3 38.3 38.3 29.3 29.2 29.2 29.1 29.2 29.2 29.2 29.1 29.3 28.9 28.9 32.5 32.5 32.5 32.4 32.4 32.4 32.3 32.4 32.5 32.4 32.3 NOTE: See “ Notes on the data” for a description of the most recent benchmark adjustment. MONTHLY LABOR REVIEW March 1987 • Current Labor Statistics: Employment Data 15. Average hourly earnings of production or nonsupervisory workers on private nonagricultural payrolls by Industry Industry Annual average 1985 $8.57 - $8.75 MINING..................................................... 11.98 12.45 " Jan. Feb. Mar. Apr. May June July Aug. Jan.p Sept. Oct. Nov. Dec.p $8.85 8.84 $8.83 8.82 $8.88 8.83 $8.72 8.68 $8.74 8.71 $8.73 8.73 $8.72 8.72 $8.72 8.73 $8.71 8.74 $8.69 8.73 $8.70 8.77 $8.81 8.76 $8.81 8.80 12.24 12.32 12.35 12.43 12.44 12.50 12.46 12.51 12.52 12.51 12.57 12.61 12.65 12.33 12.31 12.31 12.39 12.54 12.62 12.59 12.71 12.57 CONSTRUCTION........................................ 12.31 12.42 12.34 12.35 12.22 12.29 MANUFACTURING...................................... 9.53 9.73 9.70 9.70 9.72 9.70 9.71 9.70 9.74 9.68 9.73 9.72 9.77 9.84 9.83 10.26 8.43 7.46 10.04 11.94 13.88 9.88 10.27 8.36 7.44 10.06 12.06 14.08 9.84 10.22 8.40 7.46 10.07 11.85 13.83 9.82 10.30 8.42 7.52 10.11 11.92 13.93 9.87 10.28 8.37 7.50 10.10 11.84 13.78 9.86 10.33 8.39 7.52 10.13 11.87 13.78 9.93 10.40 8.34 7.59 10.17 11.94 13.88 10.03 10.37 8.26 7.56 10.18 11.90 13.84 9.98 10.10 8.22 7.17 9.84 Stone, clay, and glass p ro d u c ts ............................ Primary metal in du s trie s......................................... 11.68 Blast furnaces and basic steel p ro d u c ts .......... 13.34 9.70 Fabricated metal products ..................................... 10.29 8.37 7.44 10.05 11.93 13.83 9.87 10.27 8.30 7.36 9.96 11.81 13.48 9.85 10.29 8.36 7.31 9.94 11.96 13.81 9.85 10.30 8.33 7.35 9.93 11.99 13.80 9.88 10.28 8.32 7.36 10.00 12.00 13.82 9.84 10.28 8.37 7.39 10.04 12.02 13.86 9.85 10.29 9.47 Transportation equipm ent....................................... 12.72 Motor vehicles and equipm ent............................ 13.42 9.16 7.30 Miscellaneous manufacturing................................. 10.57 9.67 12.86 13.52 9.46 7.56 10.50 9.60 12.91 13.66 9.32 7.48 10.53 9.60 12.87 13.59 9.39 7.50 10.58 9.62 12.90 13.66 9.41 7.51 10.55 9.62 12.83 13.54 9.41 7.50 10.55 9.64 12.79 13.47 9.40 7.54 10.55 9.61 12.78 13.41 9.41 7.54 10.57 9.68 12.78 13.40 9.47 7.59 10.57 9.67 12.75 13.36 9.45 7.52 10.58 9.73 12.87 13.50 9.51 7.59 10.56 9.72 12.87 13.49 9.54 7.60 10.59 9.75 12.92 13.52 9.61 /.65 10.66 9.84 13.00 13.63 9.64 7.72 10.66 9.81 12.93 13.62 9.67 7.74 8.71 8.57 11.94 6.71 5.73 Apparel and other textile products........................ Paper and allied p ro d u c ts ...................................... 10.82 8.93 8.74 12.77 6.95 5.81 11.14 8.86 8.72 11.89 6.85 5.82 11.02 8.86 8.71 12.38 6.83 5.79 10.99 8.88 8.74 12.76 6.86 5.80 11.03 8.88 8.75 12.84 6.87 8.91 8.74 13.68 6.87 5.79 11.15 8.99 8.75 13.48 6.90 5.76 11.31 8.93 8.65 13.44 6.99 5.79 11.17 8.96 8.65 12.21 7.05 8.95 8.68 12.10 7.04 9.00 8.79 12.62 7.07 9.05 8.89 12.90 7.13 9.07 8.92 13.06 7.12 5.87 5.82 5.83 5.83 5.86 11.05 8.90 8.78 13.38 6.88 5.78 11.12 11.20 11.20 11.17 11.24 11.22 9.71 11.56 14.06 8.54 5.82 9.97 11.97 14.19 8.76 5.90 9.85 11.86 14.26 8.69 5.86 9.86 11.81 14.21 8.69 5.83 9.90 11.78 14.22 8.72 5.86 9.87 11.82 14.16 8.68 5.89 9.91 11.89 14.02 8.75 5.88 9.88 11.94 14.14 8.75 5.88 9.96 12.04 14.16 8.82 5.89 10.00 11.99 14.07 8.81 5.90 10.10 12.03 14.20 8.76 5.93 10.08 12.08 14.18 8.76 5.92 10.11 12.15 14.26 8.81 5.98 10.11 12.19 14.40 8.87 5.98 10.14 12.16 14.29 8.84 6.00 11.40 11.63 11.59 11.64 11.62 11.55 11.54 11.57 11.61 11.61 11.70 11.68 11.75 11.72 11.71 9.37 9.35 9.46 9.44 9.44 Lumber and wood p ro d u c ts ................................... Printing and publishing............................................ Petroleum and coal p roducts................................. Rubber and miscellaneous plastics p ro d u c ts ..... Leather and leather p ro d u c ts ................................ TRANSPORTATION AND PUBLIC UTILITIES 5.81 WHOLESALE TRADE.................................. 9.16 9.34 9.28 9.36 9.33 9.29 9.29 9.32 9.30 9.32 RETAIL TRADE .......................................... 5.94 6.02 6.03 6.04 6.03 6.01 6.00 5.99 5.97 5.97 6.05 6.04 6.07 6.05 6.09 8.38 8.54 8.49 8.61 8.22 8.31 8.30 8.35 FINANCE, INSURANCE, AND REAL ESTATE... SERVICES ................................................. - Data not available. p = preliminary 70 1986 Seasonally adjusted ............................................. PRIVATE SECTOR...................................... 1987 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 7.94 8.34 8.14 8.28 8.30 8.29 8.31 8.37 8.30 8.33 8.37 ' 7.89 8.16 8.12 8.17 8.18 8.12 8.10 8.10 8.04 8.05 8.19 NOTE: See “ Notes on the data” for a description of the most recent benchmark revision. 16. Average weekly earnings of production or nonsupervisory workers on private nonagricultural payrolls by industry Annual average 1986 1987 Industry 1985 1986 Jan. Mar. Feb. Apr. June May July Sept. Aug. Oct. Nov. Dec.p Jan.p PRIVATE SECTOR Seasonally adjusted........................................... Constant (1977) dollars ....................................... $299.09 $304.50 $302.58 $300.66 $302.93 $301.71 $302.58 $303.98 $304.15 $305.37 $306.59 $305.71 $307.10 $308.17 $305.47 303.80 303.98 304.68 303.46 303.80 303.28 302.93 305.20 303.97 305.36 307.63 305.17 306.40 170.42 170.88 169.32 168.82 171.05 170.94 170.85 170.78 170.97 171.36 171.28 170.69 171.28 171.78 - MINING..................................................... 519.93 526.64 543.46 522.37 522.41 522.06 519.99 525.00 518.34 529.17 529.60 527.92 522.91 534.66 535.10 CONSTRUCTION........................................ 464.09 465.75 459.05 434.72 444.81 462.10 467.31 465.32 471.47 475.78 482.79 479.56 459.54 469.00 470.12 Current d o lla rs ........................................................ Constant (1977) d o lla rs ......................................... 385.97 219.93 396.01 222.23 394.79 220.92 390.91 219.49 395.60 223.38 392.85 222.58 394.23 222.60 395.76 222.34 391.55 220.10 393.98 221.09 398.93 222.87 396.58 221.43 400.57 223.41 409.34 228.17 401.06 - Durable goods ........................................... Lumber and wood p ro d u c ts ................................... Furniture and fix tu re s .............................................. Stone, clay, and glass p ro d u c ts ............................ Primary metal industries ......................................... Blast furnaces and basic steel p ro d u c ts .......... Fabricated metal products ..................................... 416.12 327.98 282.50 412.30 484.72 548.27 400.61 424.98 336.47 294.62 424.11 499.87 575.33 407.63 425.18 329.51 289.98 414.34 493.66 556.72 407.79 421.89 328.55 284.36 403.56 503.52 578.64 403.85 426.42 333.20 288.12 412.10 504.78 576.84 409.03 423.54 334.46 286.30 425.00 499.20 569.38 403.44 423.54 338.99 288.21 428.71 501.23 576.58 404.84 424.76 342.26 294.67 429.71 499.09 577.41 408.04 417.99 334.40 287.93 427.55 495.67 582.91 398.52 420.04 341.04 298.40 432.00 491.78 569.80 402.62 428.48 342.69 303.81 435.74 501.83 579.49 410.59 424.56 338.99 303.00 431.27 496.10 571.87 407.22 429.73 338.12 300.80 424.45 503.29 580.14 412.10 438.88 336.94 310.43 427.14 513.42 592.68 422.26 429.32 328.75 300.13 420.43 506.94 579.90 412.17 Machinery, except electrical .................................. Electrical and electronic equipm ent...................... Transportation equipm ent....................................... Motor vehicles and equipm ent............................ Instruments and related products ......................... Miscellaneous manufacturing................................. 427.04 384.48 541.87 583.77 375.56 287.62 439.71 396.47 545.26 575.95 388.81 299.38 437.85 394.56 555.13 595.58 383.05 297.70 437.00 389.76 545.69 583.01 384.99 294.75 442.24 395.38 552.12 592.84 389.57 299.65 437.83 392.50 542.71 574.10 385.81 297.75 437.83 393.31 537.18 567.09 382.58 297.08 439.94 394.01 540.59 572.61 385.81 298.58 431.26 391.07 530.37 560.12 382.59 294.49 436.54 395.50 531.68 555.78 384.62 294.78 441.19 401.85 544.40 573.75 388.96 300.56 438.24 397.55 540.54 567.93 390.19 302.48 443.72 403.65 549.10 575.95 398.82 307.53 456.25 413.28 562.90 595.63 407.77 311.12 447.72 401.23 550.82 584.30 400.34 306.50 344.92 342.80 444.17 266.39 208.57 466.34 356.31 349.60 480.15 286.34 213.23 482.36 352.63 347.93 448.25 278.80 213.01 479.37 347.31 339.69 453.11 274.57 207.28 472.57 352.54 344.36 478.50 278.52 211.70 477.60 351.65 346.50 469.94 278.92 211.48 474.05 354.22 352.08 504.43 282.08 210.97 479.27 355.51 350.47 523.94 283.04 213.65 480.57 356.00 350.00 483.93 278.07 209.09 486.33 358.09 352.06 486.53 290.78 211.91 483.66 360.19 349.46 470.09 295.40 215.43 484.96 358.00 347.20 473.11 293.57 214.76 482.72 362.70 353.36 484.61 296.23 216.88 484.78 368.34 360.05 488.91 303.03 218.04 494.56 362.80 355.02 488.44 296.90 216.23 488.07 MANUFACTURING Nondurable goods..................................... Food and kindred p roducts.................................... Tobacco m anufactures........................................... Textile mill p ro d u cts................................................ Apparel and other textile products........................ Paper and allied p ro d u c ts ...................................... Printing and publishing............................................ Chemicals and allied products............................... Petroleum and coal p roducts................................. Rubber and miscellaneous plastics p roducts................................................... Leather and leather p ro d u c ts ................................ 367.04 484.36 604.58 378.86 502.74 620.10 371.35 495.75 616.03 370.74 492.48 612.45 377.19 494.76 621.41 374.07 495.26 615.96 374.60 499.38 605.66 370.50 502.67 622.16 374.50 502.07 618.79 381.00 501.18 623.30 386.83 505.26 626.22 384.05 506.15 621.08 388.22 517.59 626.01 391.26 522.95 632.16 383.29 518.02 621.62 350.99 216.50 361.79 217.71 359.77 217.41 356.29 209.88 360.14 212.72 356.75 213.81 360.50 215.80 361.38 221.68 357.21 217.93 362.97 216.53 364.42 218.22 362.66 217.86 367.38 222.46 374.31 226.64 365.98 223.80 TRANSPORTATION AND PUBLIC UTILITIES................................................. 450.30 455.90 452.01 456.29 457.83 450.45 450.06 455.86 457.43 457.43 457.47 456.69 461.78 459.42 446.15 WHOLESALE TRADE.................................. 351.74 358.66 355.42 355.68 357.34 355.81 356.74 358.82 358.05 358.82 358.87 359.04 363.26 363.44 359.66 RETAIL TRADE.......................................... 174.64 175.78 173.06 172.74 174.27 173.69 174.60 176.71 178.50 178.50 176.66 175.16 176.64 178.48 172.35 FINANCE, INSURANCE, AND REAL ESTATE ................................................... 289.02 304.41 SERVICES ................................................. 256.43 265.20 296.30 J 263.09 j 304.70 304.61 301.76 301.65 306.34 302.95 304.88 304.67 306.71 313.42 310.73 314.27 264.71 265.03 263.09 262.44 264.06 263.71 264.04 264.54 266.33 269.24 268.92 268.04 - Data not available. p = preliminary 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 Not seasonally adjusted Industry Seasonally adjusted Jan. 1986 Nov. 1986 PRIVATE SECTOR (In current dollars)............................ 167.9 170.9 171.1 171.3 Mining1 ................................................................................. C onstruction........................................................................ M anufacturing..................................................................... Transportation and public u tilitie s ................................... Wholesale trade1 ............................................................... Retail trade ......................................................................... Finance, insurance, and real estate1 .............................. S e rvices............................................................................... 180.9 150.0 171.4 169.3 171.1 157.3 175.8 172.7 182.4 153.4 173.2 172.2 174.5 159.0 183.9 177.2 182.3 154.4 174.0 172.2 174.0 158.8 182.6 177.0 183.0 152.6 174.1 172.2 174.1 159.2 184.9 177.8 PRIVATE SECTOR (in constant dollars) .................. 94.0 95.3 95.4 - Dec. 1986p ’ 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Jan. 1987p Jan. 1986 Sept. 1986 Oct. 1986 Nov. 1986 Dec. 1986p Jan. 1987p 167.3 169.6 170.0 170.8 170.6 170.8 149.7 170.7 168.6 157.0 171.7 151.2 172.8 170.8 159.1 174.4 152.6 173.1 170.9 159.1 175.3 154.0 173.2 171.2 159.3 176.6 153.9 173.6 171.1 159.3 175.7 152.3 173.4 171.6 158.9 176.7 93.5 95.0 95.1 95.3 95.0 - - - p = preliminary, NOTE: See “ Notes on the data” for a description of the most recent benchmark revision. 71 » MONTHLY LABOR REVIEW 18. March 1987 • Current Labor Statistics: Employment Data Indexes of diffusion: industries In which employment increased, data seasonally adjusted (In p e r c e n t) Jan. T im e s p a n a n d y e a r O v e r 1-m o n th s p a n : D ec. N ov. O c t. S e p t. A ug. J u ly June M ay A p r. M a r. Feb. 5 2 .4 4 7 .8 5 3 .8 4 9 .2 5 1 .6 4 7 .0 5 6 .2 5 6 .8 5 0 .8 6 1 .9 5 7 .6 5 9 .5 5 9 .7 5 3 .5 45.1 54.1 4 9 .2 4 6 .2 5 4 .6 5 4 .3 5 4 .9 55.1 6 2 .7 6 1 .9 1 9 8 6 .............................................................................................. 1 9 8 7 .............................................................................................. 5 6 .2 ” ' O v e r 3 - m o n th s p a n : 51.1 4 9 .7 4 6 .2 4 6 .2 4 5.1 5 1 .4 4 9 .7 51.1 55.1 5 5 .9 6 1 .4 6 0 .5 58.1 5 4 .3 51.1 4 9 .7 4 8 .4 4 4 .9 4 7 .3 54.1 5 4 .9 6 2 .4 6 5 .7 6 5 .9 O v e r 6 - m o n th s p a n : 1 ....................................................................... 4 9 .2 4 7 .8 4 3 .0 4 5 .9 4 4 .3 4 4 .3 4 8 .9 5 0 .8 54.1 5 7 .0 5 7 .0 5 5 .9 1 9 8 6 .............................................................................................. 5 3 .8 5 3 .8 4 7 .6 4 5 .9 4 5 .9 4 8 .6 4 9 .7 5 5 .4 6 3 .0 6 3 .2 4 9 .5 4 8 .9 4 8 .6 1 9 8 6 .............................................................................................. 1 9 8 7 .............................................................................................. 1 9 8 7 .............................................................................................. ' O v e r 1 2 - m o n th s p a n : 1 9 8 5 ............................................................................................. 4 6 .2 4 5 .7 4 6 .8 4 3 .8 4 4 .9 4 7 .3 4 7 .6 4 8 .9 4 7 .3 1 9 8 6 .............................................................................................. 5 0 .3 51.1 5 2 .2 5 2 .4 5 2 .7 5 4 .3 5 3 .0 - - 1 9 8 7 .............................................................................................. ” ” D a ta n o t a v a ila b le . NO TE: spans. F ig u re s a re th e p e r c e n t o f in d u s trie s w ith e m p lo y m e n t ris in g . (H a lf o f t h e u n c h a n g e d c o m p o n e n ts a re c o u n te d a s ris in g .) D a ta a re c e n te re d w ith in th e 19. " D a ta f o r t h e 2 m o s t re c e n t m o n th s s h o w n in e a c h s p a n a re p re lim in a ry . S e e th e “ D e fin itio n s ” in th is s e c tio n . S e e N o te s o n th e d a ta f o r a d e s c r ip tio n o f th e m o s t re c e n t b e n c h m a r k re v is io n . Annual data: Employment status of the noninstitutional population ( N u m b e rs in th o u s a n d s ) 1980 1979 1978 E m p lo y m e n t s ta tu s 1981 1982 1983 1984 1985 1986 1 7 8 ,0 8 0 1 7 9 ,9 1 2 1 8 2 ,2 9 3 1 6 3 ,5 4 1 1 6 6 ,4 6 0 1 6 9 ,3 4 9 1 7 1 ,7 7 5 1 7 3 ,9 3 9 1 7 5 ,8 9 1 1 0 3 ,8 8 2 1 0 6 ,5 5 9 1 0 8 ,5 4 4 1 1 0 ,3 1 5 1 1 1 ,8 7 2 1 1 3 ,2 2 6 1 1 5 ,2 4 1 1 1 7 ,1 6 7 1 1 9 ,5 4 0 6 3 .5 6 4 .0 64.1 6 4 .2 6 4 .3 6 4 .4 6 4 .7 65.1 6 5 .6 9 7 ,6 7 9 1 0 0 ,4 2 1 1 0 0 ,9 0 7 1 0 2 ,0 4 2 1 0 1 ,1 9 4 1 0 2 ,5 1 0 1 0 6 ,7 0 2 1 0 8 ,8 5 6 1 1 1 ,3 0 3 T o ta l ( n u m b e r ) ........................................................... P e r c e n t o f p o p u la tio n ............................................ 5 9 .7 6 0 .3 5 9 .6 5 9 .4 5 8 .2 5 8 .3 5 9 .9 6 0 .5 61.1 R e s id e n t A rm e d F o r c e s ..................................... 1 ,6 31 1 ,5 9 7 1 ,6 0 4 1 ,6 4 5 1 ,6 6 8 1 ,6 7 6 1 ,6 9 7 1 ,7 0 6 1 ,7 0 6 9 6 ,0 4 8 9 8 ,8 2 4 9 9 ,3 0 3 1 0 0 ,3 9 7 9 9 ,5 2 6 1 0 0 ,8 3 4 1 0 5 ,0 0 5 1 0 7 ,1 5 0 1 0 9 ,5 9 7 3 ,3 8 7 3 ,3 4 7 3 ,3 6 4 3 ,3 6 8 3 ,4 0 1 3 ,3 8 3 3 ,3 2 1 3 ,1 7 9 3 ,1 6 3 9 2 ,6 6 1 9 5 ,4 7 7 9 5 ,9 3 8 9 7 ,0 3 0 9 6 ,1 2 5 9 7 ,4 5 0 1 0 1 ,6 8 5 1 0 3 ,9 7 1 1 0 6 ,4 3 4 T o ta l ( n u m b e r ) .......................................................... 6 ,2 0 2 6 ,1 3 7 7 ,6 3 7 8 ,2 7 3 1 0 ,6 7 8 1 0 ,7 1 7 8 ,5 3 9 8 ,3 1 2 8 ,2 3 7 P e r c e n t o f la b o r f o r c e .......................................... 6 .0 5 .8 7 .0 7 .5 9 .5 9 .5 7 .4 7.1 6 .9 6 1 ,4 6 0 6 2 ,0 6 7 6 2 ,6 6 5 6 2 ,8 3 9 6 2 ,7 4 4 6 2 ,7 5 2 N o n in s titu tio n a l p o p u la t io n ................................................ L a b o r fo r c e : T o ta l ( n u m b e r ) ................................................................... P e r c e n t o f p o p u la t io n .................................................... E m p lo y e d : C iv ilia n T o ta l ......................................................................... A g r ic u lt u r e .......................................................... N o n a g ric u ltu r a l in d u s t r ie s ........................... U n e m p lo y e d : N o t in la b o r fo r c e (n u m b e r) .......................................... 20. 5 9 ,6 5 9 5 9 ,9 0 0 6 0 ,8 0 6 Annual data: Employment levels by industry ( N u m b e rs in th o u s a n d s ) In d u s try G o o d s - p r o d u c in g ..................................... ............................................... M a n u f a c tu r in g ..................................................................................... S e r v ic e - p r o d u c in g .................................................................................... T ra n s p o rta tio n a n d p u b lic u t i l i t i e s .............................................. 1984 9 0 ,2 0 0 9 4 ,4 9 6 1979 1980 1981 1982 8 6 ,6 9 7 8 9 ,8 2 3 9 0 ,4 0 6 9 1 ,1 5 6 8 9 ,5 6 6 7 1 ,0 2 6 7 3 ,8 7 6 7 4 ,1 6 6 7 5 ,1 2 6 7 3 ,7 2 9 7 4 ,3 3 0 7 8 ,4 7 2 2 4 ,7 2 7 1985 1986 9 7 ,6 1 4 1 0 0 ,1 6 5 8 1 ,1 9 9 8 3 ,4 3 0 2 4 ,9 3 0 2 4 ,9 3 8 2 5 ,5 8 5 2 6 ,4 6 1 2 5 ,4 9 7 2 3 ,8 1 3 851 958 2 5 ,6 5 8 1 ,0 2 7 2 3 ,3 3 4 1 ,1 3 9 1 ,1 2 8 952 966 930 792 4 ,2 2 9 4 ,4 6 3 4 ,3 4 6 4 ,1 8 8 3 ,9 0 5 3 ,9 4 8 4 ,3 8 3 4 ,6 8 7 4 ,9 6 1 2 0 ,5 0 5 2 1 ,0 4 0 2 0 ,2 8 5 2 0 ,1 7 0 1 8,7 81 1 8 ,4 3 4 1 9 ,3 7 8 1 9 ,3 1 4 1 9 ,1 8 6 6 1 ,1 1 3 6 3 ,3 6 3 6 4 ,7 4 8 6 5 ,6 5 9 6 5 ,7 5 3 6 6 ,8 6 6 6 9 ,7 6 9 7 2 ,6 8 4 7 5 ,2 2 7 4 ,9 5 4 5 ,1 5 9 5 ,2 4 2 5 ,2 8 6 4 ,9 2 3 5 ,1 3 6 5 ,1 4 6 5 ,1 6 5 5 ,0 8 2 4 ,9 6 9 5 ,2 0 4 5 ,2 7 5 5 ,3 5 8 5 ,2 7 8 5 ,2 6 8 5 ,5 5 5 5 ,7 4 0 5 ,8 5 2 1 6 ,5 4 5 1 7 ,3 6 0 1 7 ,9 7 8 1 4 ,5 7 3 1 4 ,9 8 9 1 5 ,0 3 5 1 5 ,1 8 9 1 5 ,1 7 9 1 5 ,6 1 3 F in a n c e , in s u ra n c e , a n d re a l e s t a t e ......................................... 4 ,7 2 4 4 ,9 7 5 5 ,1 6 0 5 ,2 9 8 5 ,3 4 1 5 ,4 6 8 5 ,6 8 9 5 ,9 5 3 6 ,3 0 4 S e r v ic e s ................................................................................................... 1 6 ,2 5 2 1 7 ,1 1 2 1 7 ,8 9 0 1 8 ,6 1 9 1 9 ,0 3 6 1 9 ,6 9 4 2 0 ,7 9 7 2 1 ,9 7 4 2 3 ,0 7 2 1 5 ,8 6 9 1 6 ,0 2 4 1 6 ,4 1 5 1 6 ,7 3 5 L o c a l ................................................ ............................................... NOTE: 72 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1983 1978 S e e “ N o te s o n th e d a ta ” 1 5 ,6 7 2 1 5 ,9 4 7 1 6,2 41 1 6,0 31 1 5 ,8 3 7 2 ,7 5 3 2 ,7 7 3 2 ,8 6 6 2 ,7 7 2 2 ,7 3 9 2 ,7 7 4 2 ,8 0 7 2 ,8 7 5 2 ,9 0 0 3 ,4 7 4 3 ,5 4 1 3 ,6 1 0 3 ,6 4 0 3 ,6 4 0 3 ,6 6 2 3 ,7 3 4 3 ,8 4 8 3 ,9 3 7 9 ,4 4 6 9 ,6 3 3 9 ,7 6 5 9 ,6 1 9 9 ,4 5 8 9 ,4 3 4 9 ,4 8 2 9 ,6 9 2 9 ,8 9 9 f o r a d e s c r ip tio n o f th e m o s t r e c e n t b e n c h m a r k re v is io n . 21. Annual data: Average hours and earnings of production or nonsupervisory workers on nonagricuitural payrolls, by industry Industry 1978 1979 1980 1981 1982 1983 1984 1985 1986 35.8 5.69 203.70 35.7 6.16 219.91 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 8.75 304.50 43.4 7.67 332.88 43.0 8.49 365.07 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 42.3 12.45 526.64 36.8 8.66 318.69 37.0 9.27 342.99 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 12.31 464.09 37.5 12.42 465.75 40.4 6.17 249.27 40.2 6.70 269.34 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 9.53 385.97 40.7 9.73 396.01 40.0 7.57 302.80 39.9 8.16 325.58 39.6 8.87 351.25 39.4 9.70 382.18 39.0 10.32 402.48 39.0 10.79 420.81 39.4 11.12 438.13 39.5 11.40 450.30 39.2 11.63 455.90 38.8 5.88 228.14 38.8 6.39 247.93 38.5 6.96 267.96 38.5 7.56 291.06 38.3 8.09 309.85 38.5 8.55 329.18 38.5 8.89 342.27 38.4 9.16 351.74 38.4 9.34 358.66 31.0 4.20 130.20 30.6 4.53 138.62 30.2 4.88 147.38 30.1 5.25 158.03 29.9 5.48 163.85 29.8 5.74 171.05 29.8 5.85 174.33 29.4 5.94 174.64 29.2 6.02 175.78 36.4 4.89 178.00 36.2 5.27 190.77 36.2 5.79 209.60 36.3 6.31 229.05 36.2 6.78 245.44 36.2 7.29 263.90 36.5 7.63 278.50 36.4 7.94 289.02 36.5 8.34 304.41 32.8 4.99 163.67 32.7 5.36 175.27 32.6 5.85 190.71 32.6 6.41 208.97 32.6 6.92 225.59 32.7 7.31 239.04 32.6 7.59 247.43 32.5 7.89 256.43 32.5 8.16 265.20 Private sector Average weekly h o u rs ................................................................. Average hourly earnings (In d o lla rs )......................................... Average weekly earnings (in dollars) ....................................... Mining Average weekly hours ........................................................... Average hourly earnings (in d o lla rs )................................... Average weekly earnings (in d o lla rs ).................................. Construction Average weekly hours ........................................................... Average hourly earnings (in d o lla rs )................................... Average weekly earnings (in d o lla rs ).................................. Manufacturing Average weekly hours ........................................................... Average hourly earnings (in d o lla rs )................................... Average weekly earnings (in d ollars).................................. Transportation and public utilities Average weekly h o u rs ........................................................... Average hourly earnings (in d o lla rs )................................... Average weekly earnings (in d o lla rs ).................................. Wholesale trade Average weekly hours ........................................................... Average hourly earnings (in dollars) ................................... Average weekly earnings (in d o lla rs ).................................. Retail trade Average weekly hours ........................................................... Average hourly earnings (in d o lla rs )................................... Average weekly earnings (in d o lla rs ).................................. Finance, Insurance, and real estate Average weekly hours ........................................................... Average hourly earnings (in d o lla rs )................................... Average weekly earnings (in d o lla rs ).................................. Services Average weekly h o u rs ........................................................... Average hourly earnings (in d o lla rs )................................... Average weekly earnings (in d o lla rs ).................................. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW 22. March 1987 • Current Labor Statistics: Compensation and Industrial Relations Data Employment Cost Index, compensation,1 by occupation and industry group (June 1981 = 100) Percent change 1986 1985 1984 Series Dec. Mar. June Sept. Dec. Sept. Dec. 3 months ended 12 months ended Mar. June 133.0 133.8 0.6 3.6 Dec. 1986 C ivilian w o rkers 2 .......................................................................... Workers, by occupational group: White-collar workers ................................................................. Blue-collar w o rkers.................................................................... Service occupations.................................................................. Workers, by industry division: G oods-producing......................................................................... M anufacturing............................................................................ Service-producing....................................................................... Services..................................................................................... Health services...................................................................... Hospitals................................................................................. Public administration 3 ............................................................. Nonmanufacturing....................................................................... Private in d u stry w o rk e r s ......................................................... Workers, by occupational group: White-collar w o rkers............................................................... Professional specialty and technical o ccup ations.......... Executive, administrative, and managerial occupations Sales occupations................................................................. Administrative support occupations, including c le ric a l................................................................................... Blue-collar w o rkers................................................................. Precision production, craft, and repair o ccup ation......... Machine operators, assemblers, and in spectors............ Transportation and material moving occupations........... Handlers, equipment cleaners, helpers, and laborers .... Service occupations............................................................... Workers, by industry division: G oods-producing...................................................................... C o nstruction............................................................................ M anufacturing.......................................................................... D u rab les................................................................................. Nondurables........................................................................... Service-producing ............ ....................................................... Transportation and public utilities........................................ Transportation........................................................................ Public u tilitie s ......................................................................... Wholesale and retail trade ................................................. Wholesale t ra d e .................................................................... Retail trade ............................................................................ Finance, insurance, and real e s ta te .................................... S e rv ic e ..................................................................................... Health se rvice s...................................................................... H o sp ita ls............................................................................... 123.9 125.5 126.4 128.4 129.2 130.6 131.5 125.5 120.9 126.8 127.3 122.2 127.8 128.3 123.1 128.0 130.7 124.4 130.9 131.6 124.9 131.8 133.1 126.2 133.1 134.2 126.8 133.7 136.0 127.8 135.4 136.9 128.4 136.6 .7 .5 .9 4.0 2.8 3.6 121.4 122.0 125.5 130.9 128.6 124.8 123.2 123.9 126.9 131.9 130.1 126.2 123.9 124.6 127.9 132.6 130.3 127.2 124.9 125.5 130.7 136.4 134.2 129.7 125.5 126.0 131.5 137.1 134.8 130.6 126.9 127.7 132.9 138.8 136.8 131.9 128.1 128.7 133.7 139.4 138.0 132.8 128.8 129.3 135.6 142.4 140.6 134.6 129.5 130.1 136.5 143.6 “ 141.6 135.4 .5 .6 .7 .8 1.1 1.1 .7 .6 3.2 3.3 3.8 4.7 4.7 “ 5.0 3.7 122.7 124.2 125.2 126.8 127.5 128.9 129.9 130.8 131.6 .6 3.2 123.9 “ - 125.8 - 127.1 “ “ 128.8 - 129.8 - 131.3 “ - 132.5 _ 133.5 ” 134.3 “ - .6 .7 .8 -.1 3.5 3.6 4.1 “ 120.6 125.7 121.9 126.3 122.8 126.5 124.0 128.8 124.4 “ 129.5 125.7 " 130.9 126.3 “ 131.1 127.2 “ 132.3 127.8 133.5 .7 .5 .5 .6 .3 .6 .9 3.6 2.7 2.9 2.7 2.7 2.1 3.1 121.2 122.0 123.9 - 123.0 123.9 125.2 - 123.8 124.6 126.4 - 125.3 126.0 129.4 “ - 126.7 127.7 130.8 - 128.6 129.3 132.7 - 129.2 130.1 “ 133.5 “ “ “ .5 .2 .6 .5 .7 .6 .1 -.4 .7 .5 1.0 .3 .8 1.0 1.3 1.2 3.1 2.8 3.3 2.8 4.0 3.2 2.2 2.2 2.0 2.6 2.2 3.1 4.3 4.9 ” - - - 124.6 125.5 128.7 “ - - - - - - - - - - - - - - - - - 127.8 128.7 131.6 “ “ Nonmanufacturing .................................................................. 123.1 124.4 125.6 127.6 128.4 129.7 130.6 131.7 132.4 .5 3.1 State and local gove rnm ent w o rkers .................................. Workers, by occupational group: White-collar w o rkers............................................................... Blue-collar w o rk e rs ................................................................. Workers, by industry division: S e rvice s................................................................................... Hospitals and other services4 ........................................... Health se rv ic e s ................................................................... Schools ................................................................................. Elementary and secondary............................................. Public administration3 ............................................................. 130.1 131.7 132.0 136.5 137.5 138.9 139.7 143.6 144.7 .8 5.2 131.1 125.9 132.5 128.1 132.9 128.5 137.6 131.9 138.6 132.7 140.0 134.7 140.5 136.3 145.0 138.5 146.0 139.5 .7 .7 5.3 5.1 131.3 129.2 132.0 133.5 128.6 132.8 131.1 133.2 131.5 137.9 134.1 139.1 135.2 140.4 136.8 141.5 143.0 136.8 140.8 137.9 141.7 143.2 138.0 145.5 139.4 147.6 149.4 140.6 146.6 141.1 148.4 150.3 141.6 .8 1.2 .7 .5 .6 .7 5.4 4.4 4.1 5.8 5.8 5.0 - - - - - 133.4 134.4 130.1 133.7 134.6 130.3 139.1 140.9 134.2 140.3 142.0 134.8 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. 74 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3 Consist of legislative, judicial, administrative, and regulatory 4 Includes, for example, library, social, and health services. - Data not available. activities. 23. Employment Cost Index, wages and salaries, by occupation and industry group (June 1981 = 100) 1984 1985 1986 Percent change Series Dec. Mar. June Sept. Dec. Mar. June Sept. Dec. 3 months ended 12 months ended Dec. 1986 Civilian w o rke rs 1.......................................................................... Workers, by occupational group: White-collar w o rk e rs ................................................................. Blue-collar w o rkers.................................................................... Service occupations.................................................................. 121.7 123.1 124.2 126.3 127.0 128.3 129.3 130.7 131.5 0.6 3.5 123.5 118.2 124.3 125.2 119.3 124.8 126.4 120.5 125.3 128.8 122.0 128.0 129.8 122.3 128.6 131.2 123.4 129.8 132.4 124.1 130.0 134.1 125.0 131.7 135.0 125.6 132.8 .7 .5 .8 4.0 2.7 3.3 Workers, by industry division G oods-producing......................................................................... M anufacturing............................................................................ Service-producing....................................................................... S e rvice s................................................................................... Health se rvice s...................................................................... Hospitals................................................................................. Public administration 2 .......................................................... Nonm anufacturing................................................... ................. 118.8 119.5 123.4 128.9 125.7 122.6 120.3 121.0 124.7 129.7 127.0 123.9 121.5 122.3 125.8 130.5 127.2 125.0 122.5 123.2 128.6 134.2 131.4 127.6 123.1 123.8 129.4 134.8 132.0 128.4 124.4 125.3 130.7 136.4 133.8 129.6 125.6 126.5 131.5 137.0 134.6 130.4 126.3 127.2 133.4 139.9 137.5 132.2 127.0 127.9 134.2 141.1 _ 138.1 133.0 .6 .6 .6 .9 1.2 1.2 .4 .6 3.2 3.3 3.7 4.7 4.8 Private Industry w o r k e r s ...................................................... Workers, by occupational group: White-collar w o rke rs ............................................................ Professional specialty and technical occup ations...... Executive, administrative, and managerial occu p a tio n s...................................................................... Sales occupations............................................................. Administrative support occupations, including c le ric a l............................................................................... Blue-collar w o rke rs .............................................................. Precision production, craft, and repair occupations..................................................................... Machine operators, assemblers, and in spectors........ Transportation and material moving occupations....... Handlers, equipment cleaners, helpers, and la b o re rs............................................................................. Service o ccup ations........................................................... 4.6 3.6 120.6 122.0 123.3 124.9 125.6 126.8 127.9 128.8 129.5 .5 3.1 122.3 127.3 124.0 127.7 125.5 128.7 127.3 131.2 128.3 131.5 129.6 132.7 131.1 134.0 132.0 135.4 132.7 136.4 .5 .7 3.4 3.7 122.2 111.6 123.8 116.3 126.5 117.4 127.7 119.3 128.4 122.5 130.5 122.4 132.1 124.3 132.4 125.2 133.5 124.9 .8 -.2 4.0 2.0 122.9 124.7 125.6 127.1 127.9 129.6 130.8 131.7 132.7 .8 3.8 118.0 119.1 120.3 121.7 122.0 123.1 123.7 124.5 125.1 .5 2.5 119.4 117.9 114.0 120.8 118.9 114.5 122.0 120.1 115.7 123.7 121.1 117.7 123.8 121.6 117.8 125.3 122.6 118.0 125.7 123.6 118.9 126.7 124.1 119.8 127.4 124.9 120.1 .6 .6 .3 2.9 2.7 2.0 115.9 123.7 116.7 123.8 118.5 124.4 118.6 126.3 119.8 126.6 120.0 128.0 120.3 128.0 120.9 128.9 121.4 130.1 .4 .9 1.3 2.8 Workers, by industry division: G oods-producing................................................................... Construction ......................................................................... M anufacturing....................................................................... D u rab les............................................................................. Nondurables....................................................................... Service-producing.................................................................. Transportation and public u tilitie s .................................. Transportation.................................................................. Public utilities.................................................................... Wholesale and retail tra d e .............................................. Wholesale trade ............................................................ Retail tra d e ...................................................................... Finance, insurance, and real e s ta te .............................. S e rvices.............................................................................. Health s e rv ic e s ................................................................ H o spitals.......................................................................... 118.7 114.4 119.5 119.1 120.2 122.1 120.7 118.1 122.9 116.2 115.8 129.5 - 120.2 115.5 121.0 120.6 121.6 123.4 121.7 121.4 116.6 122.3 122.0 122.6 124.8 122.8 - 122.3 117.3 123.2 122.7 124.0 127.0 124.8 122.7 127.7 120.8 124.1 133.9 _ 122.9 117.9 123.8 123.4 124.6 127.8 125.2 _ _ 124.2 118.3 125.3 124.8 126.1 129.0 126.3 _ _ 125.4 119.8 126.5 125.8 127.9 129.9 126.6 _ 126.1 120.5 127.2 126.4 128.5 130.9 127.3 _ _ 126.8 120.8 127.9 127.2 129.3 131.6 127.5 _ _ 123.7 128.3 121.9 126.5 134.1 _ 124.5 129.7 122.5 126.6 136.2 125.8 131.2 123.7 128.0 136.9 _ 126.5 131.8 124.4 129.0 138.2 _ 126.9 133.1 124.5 130.0 139.5 _ .6 .2 .6 .6 .6 .5 .2 -.3 .7 .3 1.0 .1 .8 .9 1.5 1.5 3.2 2.5 3.3 3.1 3.8 3.0 1.6 1.3 2.5 2.6 3.7 2.1 2.8 4.0 5.1 Nonmanufacturing................................................................ 121.2 122.6 130.4 .5 3.0 State and local government workers................................ Workers, by occupational group White-collar w o rke rs ............................................................ Blue-collar w o rk e rs .............................................................. Workers, by industry division Services ................................................................................ Hospitals and other services 3 ....................................... Health services ................................................................ S ch o o ls............................................................................... Elementary and s econ dary.......................................... Public administration 2 ......................................................... - - 118.8 123.7 116.9 122.0 129.9 _ - 123.9 125.9 126.6 127.7 128.7 129.7 - 127.1 128.4 128.7 133.2 134.2 135.5 136.0 140.4 141.4 .7 5.4 128.0 122.5 129.3 124.2 129.6 124.5 134.3 127.9 135.3 128.4 136.6 130.4 137.0 131.9 141.8 134.5 142.8 135.1 .7 .4 5.5 5.2 128.1 125.9 128.7 130.2 125.7 129.4 127.7 129.7 128.0 130.2 131.1 127.2 134.5 130.2 135.6 130.9 136.8 132.4 137.1 133.3 142.1 135.8 143.3 137.3 .8 1.1 .5 .7 .5 .4 5.7 4.9 4.1 5.9 5.7 4.6 - 129.9 130.8 127.0 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 121.1 126.8 118.9 121.7 131.0 _ - 135.8 137.5 131.4 _ 137.0 138.5 132.0 _ 138.0 139.4 133.8 _ 138.2 139.4 134.6 _ 144.1 145.7 137.5 _ 145.1 146.4 138.1 3 Includes, for example, library, social and health services, - Data not available. MONTHLY LABOR REVIEW 24. March 1987 • Current Labor Statistics: Compensation and Industrial Relations Data Employment Cost Index, private nonfarm workers, by bargaining status, region, and area size (June 1981=100) Series Dec. Mar. Sept. June Percent change 1986 1985 1984 Dec. Mar. June Sept. 12 3 months ended Dec. months ended Dec. 1986 COMPENSATION Workers, by bargaining status1 G oods-producing....................................................................... Service-producing...................................................................... M anufacturing............................................................................ N onm anufacturing..................................................................... N o nunion....................................................................................... G oods-producing....................................................................... Service-producing...................................................................... M anufacturing............................................................................ N onm anufacturing.................................................................... 124.8 123.6 126.7 124.2 125.3 125.5 123.9 128.0 124.2 126.6 126.5 124.6 129.5 125.0 127.8 127.1 125.2 130.2 125.5 128.6 128.4 126.4 131.6 127.0 129.7 128.7 126.7 131.9 126.9 130.4 129.4 127.3 132.8 127.5 131.2 129.8 127.5 133.4 127.9 131.5 0.3 .5 .3 2.5 1.9 2.3 121.9 119.6 123.3 123.8 122.4 124.7 123.6 123.9 125.0 123.5 125.8 124.8 125.1 126.8 124.4 128.3 125.7 127.3 127.5 125.1 129.0 126.3 128.1 129.0 126.7 130.4 128.1 129.5 130.2 128.2 131.4 129.7 130.4 131.2 129.1 132.5 130.4 131.6 132.1 130.0 133.4 131.4 132.5 .7 .7 .7 .7 3.6 3.9 3.4 4.0 3.4 125.1 124.2 128.8 126.5 124.2 129.1 129.9 127.2 124.6 129.8 131.6 128.7 125.9 130.8 133.3 129.6 126.2 131.6 134.2 130.7 127.3 132.1 135.2 131.4 128.1 132.8 .7 .5 4.1 3.3 .5 2.3 .6 .6 3.2 3.2 120.8 122.4 Workers, by region 1 N ortheast....................................................................................... South ............................................................................................. Midwest (formerly North C e ntral).............................................. W e s t............................................................................................... .2 .2 .8 124.9 126.8 126.4 125.2 122.7 127.9 123.2 119.8 124.7 121.4 125.7 122.5 127.3 123.9 128.1 123.9 129.5 125.5 130.5 126.4 131.4 127.2 132.2 127.9 121.7 123.0 121.3 125.7 121.7 124.1 122.2 127.1 122.8 124.1 125.3 124.7 122.7 127.8 123.3 125.9 125.6 123.4 129.0 124.2 126.9 126.1 124.1 129.3 124.6 127.4 126.9 124.5 130.5 125.0 128.5 127.2 124.8 130.9 125.5 128.7 125.2 122.3 126.9 123.7 125.9 125.9 123.0 127.7 124.4 126.6 127.3 124.5 128.9 126.1 127.8 128.5 126.1 129.9 127.7 128.9 129.4 127.0 130.8 128.5 129.8 130.3 127.8 131.7 129.5 130.6 .6 .7 .8 .6 126.8 124.8 122.5 126.6 128.1 125.4 122.9 127.1 129.2 126.8 124.2 128.1 131.3 127.8 124.4 128.9 132.3 128.8 125.3 129.3 133.1 129.4 126.2 130.1 .5 .7 125.5 121.9 122.0 126.3 127.4 123.6 128.5 124.5 129.4 125.0 130.2 125.6 123.8 122.2 120.8 122.0 Workers, by area size 1 Metropolitan a re a s ....................................................................... Other a re a s ................................................................................... 2.1 1.8 123.9 122.9 125.6 123.2 124.5 2.8 .6 WAGES AND SALARIES Workers, by bargaining status 1 Union ............................................................................................. G oods-producing....................................................................... Service-producing...................................................................... M anufacturing............................................................................ N onm anufacturing..................................................................... 120.9 119.3 123.5 119.5 N o nunion....................................................................................... G oods-producing....................................................................... Service-producing...................................................................... Manufacturing ............................................................................ N onm anufacturing..................................................................... 120.4 118.1 122.8 122.1 120.2 119.5 120.7 123.1 121.5 122.3 122.1 121.6 120.0 124.2 120.4 123.4 121.4 124.4 122.8 123.6 Workers, by region 1 N ortheast....................................................................................... South .............................................................................................. Midwest (formerly North C e ntral).............................................. W e s t................................................................................................ Workers, by area size1 Metropolitan a re a s ....................................................................... Other a re a s ................................................................................... 121.9 120.2 118.7 122.5 121.0 118.3 123.0 122.3 119.6 124.0 122.4 119.6 1 The indexes are calculated differently from those for the occupation and industry groups. For a detailed description of the index calculation, see the 76 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 124.6 123.4 121.1 125.1 123.8 120.6 M o n th ly L a b o r R e v ie w Technical Employment Cost Index,” May 1982. Note, “ Estimation 2.0 .2 .2 1.7 2.4 .3 .4 1.8 2.2 .2 .7 3.5 3.9 3.1 4.1 3.2 .6 3.9 3.2 2.7 2.4 .6 .6 3.1 3.0 .5 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) Annual average Measure Quarterly average 1984 1984 1985 1986 1985 IV I II III IV F IIP NIP Specified adjustments: Total compensation ’ adjustments,2 settlements covering 5,000 workers or more: First year of contract........................................... Annual rate over life of contract......................... 3.6 2.8 2.6 2.7 3.7 2.0 3.6 2.7 3.5 3.4 2.0 3.0 2.0 1.4 0.6 1.2 0.7 1.6 0.7 1.2 Wage adjustments, settlements covering 1,000 workers or more: First year of contract........................................... Annual rate over life of contract......................... 2.4 2.4 2.3 2.7 2.3 1.5 3.3 3.2 2.5 2.8 2.0 3.1 2.1 1.9 .8 1.5 1.3 2.0 .8 1.5 3.7 .8 3.3 .7 .7 .3 .7 .1 .8 .2 1.2 .2 .5 .1 .6 .0 .7 .2 .5 .1 2.0 .9 1.8 .7 .2 .2 .6 .1 .5 .1 .5 .4 .2 .1 .4 .2 .6 .0 .5 .0 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 Compensation includes wages, salaries, and employers’ cost of employee benefits when contract is negotiated. 2 Adjustments are the net result of increases, decreases, and no changes in compensation or wages. 3 Because of rounding, total may not equal sum of parts. 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 1984 1985 IV I II 1986 III IV IP IIP NIP Specified total compensation adjustments, settlements covering 5,000 workers or more, all industries: First year of contract........................................................................... Annual rate over life of contract.......................................................... 3.6 2.8 3.4 2.6 3.4 2.7 3.1 2.7 2.6 2.7 2.3 2.5 1.4 2.0 0.9 1.4 2.4 2.9 2.1 2.4 1.8 2.7 2.4 2.5 2.4 2.3 1.3 2.8 2.4 2.3 2.4 2.4 1.5 2.8 2.4 1.9 2.7 2.5 1.8 3.0 2.3 1.6 2.7 2.7 2.5 2.8 2.0 1.6 2.2 2.5 2.5 2.5 1.6 1.8 1.5 2.2 2.5 2.1 1.2 2.2 .8 1.7 2.0 1.6 2.3 2.1 2.9 1.5 1.0 3.3 2.1 2.0 2.5 1.4 .9 3.2 2.0 1.9 2.2 1.5 1.0 3.0 1.5 1.5 1.5 1.6 1.4 2.4 .8 .8 .9 1.8 2.1 1.6 .8 .8 .9 1.8 2.1 1.5 .1 .7 -.4 1.4 2.0 .9 -.1 1.1 -2.0 .3 1.1 -.1 2.5 5.5 2.0 2.9 4.8 2.6 2.6 5.1 2.4 2.8 4.0 2.7 2.7 4.3 2.5 2.9 3.8 2.8 3.2 4.0 3.0 3.3 3.9 3.2 3.3 3.6 3.3 3.3 3.6 3.3 2.8 3.5 2.7 3.0 3.6 2.8 2.6 3.4 2.4 2.8 3.3 2.6 2.1 2.7 1.9 2.3 2.5 2.2 .5 4.0 .4 1.0 1.4 1.0 .9 4.6 .8 1.4 1.7 1.4 1.1 9.2 1.0 1.7 4.6 1.7 1.6 2.3 1.1 2.4 2.5 1.2 2.6 2.3 1.4 2.4 2.6 1.6 2.6 Specified wage adjustments, settlements covering 1,000 workers or more: All industries First year of contract......................................................................... Contracts with COLA clauses......................................................... Contracts without COLA clauses ................................................... Annual rate over life of contract....................................................... Contracts with COLA clauses......................................................... Contracts without COLA clauses ................................................... Manufacturing First year of contract......................................................................... Contracts with COLA clauses......................................................... Contracts without COLA clauses ................................................... Annual rate over life of contract....................................................... Contracts with COLA clauses......................................................... Contracts without COLA clauses ................................................... Nonmanufacturing First year of contract ......................................................................... Contracts with COLA clauses......................................................... Contracts without COLA clauses ................................................... Annual rate over life of contract..................................................... Contracts with COLA clauses......................................................... Contracts without COLA clauses ................................................... Construction First year of contract ..................................................................... Contracts with COLA clauses..................................................... Contracts without COLA clauses ............................................. Annual rate over life of contract................................................... Contracts with COLA clauses......................................... Contracts without COLA clauses ...................................... 1 Data do not meet publication standards. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis p = preliminary. 1.0 (1) O 1.5 (1) (’) 1.7 O (1) (') (1) 2.1 O (’) 2.2 (') (1) MONTHLY LABOR REVIEW March 1987 • Current Labor Statistics: Compensation and Industrial Relations Data 2 7 . Average effective wage adjustments, private industry collective bargaining situations covering 1,000 workers or more during 4-quarter periods (in percent) ______ Average for four quarters ending-1986 1985 Effective wage adjustment I II III IV P IP IIP For all workers:' Tota l...................................................................................................... From settlements reached in period ................................................ Deferred from settlements reached in earlier period....................... From cost-of-living-adjustments clauses........................................... 3.6 .7 2.2 .7 3.5 .9 1.9 .7 3.5 .9 1.8 .8 3.3 .7 1.8 .7 3.1 .6 1.7 .8 2.9 .5 1.8 .7 2.3 .5 1.6 .2 For workers receiving changes: To ta l...................................................................................................... From settlements reached in period ................................................. Deferred from settlements reached in earlier period ....................... From cost-of-living-adjustments clauses........................................... 4.5 2.9 4.2 2.3 4.2 2.9 3.9 2.3 4.3 2.8 3.7 2.8 4.1 3.4 3.7 2.2 4.0 2.9 3.Ò 2.5 3.8 2.5 3.4 2.0 3.1 1.7 3.8 1.0 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 First 6 months 1986P Measure 1984 1985 5.2 5.4 4.2 5.1 6.7 6.4 4.8 5.1 4.6 5.4 6.1 6.0 5.0 1.9 3.1 (4) 5.7 4.1 1.6 (4) 1.8 .6 1.2 (4) Specified adjustments: Total compensation 1 adjustments,2 settlements covering 5,000 workers or more: Wage adjustments, settlements covering 1,000 workers or more: Effective adjustments: 3 Because of rounding, total may not equal sum of parts. 4 Less than 0.05 percent. p = preliminary. 1 Compensation includes wages, salaries, and employers’ cost of employee benefits when contract is negotiated. 2 Adjustments are the net result of increases, decreases, and no changes in compensation or wages. 29. Work stoppages involving 1,000 workers or more Annual totals 1985 Measure 1985 Dec. May Apr. Jan. June Julyp Sept." Aug. Oct.P Nov.p Dec.p Number of stoppages: Beginning in period.... In effect during period Workers involved: Beginning in period (in thousands)..................... In effect during period (in thousands)..................... Days idle: Number (in thousands).......... Percent of estimated working time1 ..................................... 323.9 78 7.6 24.0 11.2 6.1 28.6 198.0 46.7 113.3 37.9 44.3 8.7 2.7 144.8 85.2 107.7 67.1 37.1 584.1 38.0 12.0 28.4 38.6 17.6 41.2 205.9 66.3 7,079.0 661.9 170.0 309.5 367.5 297.3 303.6 3,684.3 894.5 1,612.1 1,208.5 1,411.9 941.4 668.6 .03 .03 .01 .02 .02 .02 .02 .17 .04 .07 .06 .06 .04 .04 1 Agricultural and government employees working time: private household, forestry, explanation of the measurement of idleness found in '“ Total economy’ measure of strike https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 8.2 are included in the total employed and total and fishery employees are excluded. An as a percentage of the total time worked is idleness,” M onthly Labor Review, October 1968, pp. 54-56. - Data not available, p = preliminary 30. Consumer Price Index for All Urban Consumers: U.S. city average, by expenditure category and commodity or service group; and CPI for Urban Wage Earners and Clerical Workers, all items (1967 = 100, unless otherwise indicated) Series Annual average 1985 1986 Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 328.4 381.9 327.4 380.8 328.4 381.9 327.5 380.8 326.0 379.1 325.3 378.3 326.3 379.5 327.9 381.4 328.0 381.4 328.6 382.1 330.2 384.1 330.5 384.4 330.8 384.7 331.1 385.1 302.0 309.8 296.8 317.0 263.4 258.0 325.7 361.1 398.8 294.4 451.7 294.2 346.6 229.5 311.8 319.7 305.3 325.8 275.1 258.4 328.7 373.6 411.1 287.8 478.2 301.9 360.1 239.7 305.6 313.2 299.3 321.9 269.9 256.9 323.9 361.3 402.2 290.3 448.8 297.3 352.1 236.2 307.9 315.6 302.5 322.0 271.5 257.2 334.4 365.7 405.1 292.1 459.7 298.0 353.1 237.5 307.7 315.3 301.5 322.5 268.4 257.3 320.7 375.1 408.6 291.4 485.3 299.5 354.2 238.3 307.8 315.4 301.2 322.7 267.7 256.8 319.2 375.7 408.4 290.2 488.0 299.3 355.5 238.8 308.5 316.1 301.5 322.5 264.2 256.8 329.5 376.1 411.4 288.5 487.4 300.2 357.0 239.5 309.4 317.0 302.1 323.8 263.4 257.1 336.5 374.6 411.2 287.2 481.9 301.4 358.8 239.4 309.5 317.1 301.6 326.1 265.1 257.2 327.8 374.1 411.5 287.0 480.0 301.7 360.2 240.1 312.2 320.1 305.5 326.3 274.9 258.4 330.3 373.7 412.4 287.3 478.3 301.8 360.8 240.4 314.6 322.7 308.9 328.2 283.0 258.3 332.1 374.0 413.1 287.8 476.9 303.2 361.8 240.1 315.1 323.2 309.0 328.5 284.7 258.5 329.1 373.7 413.7 285.6 475.7 303.8 363.3 240.4 315.6 323.7 309.5 328.4 284.9 260.0 328.6 374.4 413.4 284.6 477.5 304.7 364.0 240.6 316.4 324.6 309.9 328.5 286.3 261.2 327.8 373.9 412.4 285.4 476.9 303.9 365.8 240.5 317.0 325.2 310.2 329.5 287.3 262.2 328.5 372.2 411.8 286.0 470.2 305.2 367.1 240.8 Housing .......................................................................................... Shelter ........................................................................................ Renters’ costs (12/82 = 100).................................................. Rent, residential..................................................................... Other renters' costs .............................................................. Homeowners' costs (12/82 = 100)........................................... Owners' equivalent rent (12/82 = 100) ................................. Household insurance (1 2 /8 2 -1 0 0 )...................................... Maintenance and repairs.......................................................... Maintenance and repair services .......................................... Maintenance and repair commodities................................... Fuel and other utilities................................................................ Fuels ......................................................................................... Fuel oil, coal, and bottled g a s ............................................... Gas (piped) and electricity.................................................... Other utilities and public services............................................ Household furnishings and operations....................................... Housefurnishings...................................................................... Housekeeping supplies............................................................ Housekeeping services............................................................ 349.9 382.0 115.4 264.6 398.4 113.1 113.2 112.4 368.9 421.1 269.6 393.6 488.1 619.5 452.7 240.7 247.2 200.1 313.6 338.9 360.2 402.9 121.9 280.0 416.2 119.4 119.4 119.2 373.8 430.9 269.7 384.7 463.1 501.5 446.7 253.1 250.4 201.1 319.5 346.6 355.8 392.3 118.3 272.4 398.1 116.3 116.3 115.0 373.7 426.2 273.3 393.3 483.6 657.3 439.9 245.8 248.8 200.1 317.7 343.2 356.8 393.8 118.8 273.4 401.1 116.7 116.7 115.7 379.1 432.6 277.1 394.6 484.7 650.3 442.6 247.3 248.8 199.8 318.3 343.9 356.5 394.8 119.0 273.7 404.1 117.0 117.0 117.4 379.6 432.8 277.8 390.0 476.3 591.2 444.5 247.9 249.0 199.7 318.6 344.5 357.0 397.0 119.6 275.0 405.5 117.9 117.9 118.0 367.5 422.4 266.1 385.5 467.6 549.9 442.3 249.0 249.8 201.0 317.9 345.1 358.0 400.1 120.9 277.9 410.8 118.7 118.7 118.3 367.6 424.6 264.5 381.8 459.6 518.3 439.2 251.3 249.6 200.4 318.5 345.4 358.5 400.9 121.1 278.4 411.3 118.9 118.9 118.8 367.1 425.5 262.9 382.5 460.6 496.8 444.6 251.5 249.9 200.8 318.3 345.8 361.2 401.6 121.6 279.4 415.2 119.0 119.0 118.9 366.6 427.4 260.7 393.8 477.0 486.6 466.0 255.2 250.2 200.8 319.6 346.1 361.5 403.5 122.5 281.2 420.1 119.4 119.4 119.9 369.2 430.1 262.7 389.4 469.2 459.4 462.3 255.6 250.5 201.2 319.5 346.6 362.4 363.7 405.2 407.6 122.9 123.6 281.7 283.2 425.7 429.1 119.9 120.7 119.9 120.7 119.9 120.2 376.4 376.2 434.2 437.0 271.3 268.7 389.5 388.3 469.0 467.2 447.3 453.5 464.5 461.1 255.9 255.6 250.5 251.5 200.9 202.2 319.8 320.1 347.4 . 347.8 363.0 409.5 124.0 284.6 427.3 121.3 121.3 120.6 379.0 437.5 273.0 379.1 450.3 451.9 441.4 257.1 251.6 202.2 319.8 348.5 361.7 410.2 124.3 285.6 425.5 121.5 121.5 121.1 377.1 433.7 272.9 371.1 437.8 452.0 426.7 255.4 251.2 201.4 320.4 348.5 362.1 410.4 124.2 286.0 418.2 121.6 121.6 121.6 380.0 433.1 278.3 371.0 438.1 460.6 425.3 254.9 252.4 202.5 322.9 349.3 Apparel and upkeep...................................................................... Apparel commodities.................................................................. Men’s and boys’ apparel.......................................................... Women’s and girls’ apparel ..................................................... Infants' and toddlers' apparel.................................................. Footwear................................................................................... Other apparel commodities...................................................... Apparel services.......................................................................... 206.0 191.6 197.9 169.5 299.7 212.1 215.5 320.9 207.8 192.0 200.0 168.0 312.7 211.2 217.9 334.6 209.0 194.2 202.0 172.6 304.1 213.1 214.6 326.9 205.0 189.5 198.6 164.4 313.9 209.1 215.5 329.8 204.1 188.5 196.8 163.4 311.6 207.9 216.1 330.7 206.3 190.8 198.3 167.6 313.1 210.1 214.6 331.5 207.3 191.7 199.7 168.0 316.6 211.4 215.3 332.9 206.4 190.7 200.2 164.9 318.5 211.5 215.4 333.6 204.5 188.4 198.1 161.3 319.7 210.0 215.8 334.3 203.2 187.0 195.8 159.8 307.5 209.1 218.1 334.6 207.0 191.2 197.8 167.2 310.6 209.6 221.6 334.7 212.1 196.6 203.2 175.7 309.7 212.0 221.1 336.7 213.2 197.6 204.3 176.4 312.0 215.1 219.8 338.3 213.1 197.4 205.3 175.0 307.0 215.1 221.1 339.0 210.9 194.9 202.3 171.7 312.7 214.0 220.0 339.5 Transportation ............................................................................... Private transportation.................................................................. New vehicles............................................................................ New cars................................................................................ Used cars ................................................................................. Motor fuel ................................................................................. Gasoline................................................................................. Maintenance and repair............................................................ Other private transportation..................................................... Other private transportation commodities............................. Other private transportation services.................................... Public transportation................................................................... 319.9 314.2 214.9 215.2 379.7 373.8 373.3 351.4 287.6 202.6 312.8 402.8 307.5 299.5 224.1 224.4 363.2 292.1 291.4 363.1 303.9 201.6 333.9 426.4 324.0 317.8 219.2 219.4 375.6 377.5 376.8 357.5 295.2 202.1 322.7 412.9 323.9 317.3 219.7 219.9 374.1 373.3 372.5 357.9 297.7 203.4 325.5 419.6 319.2 312.2 220.2 220.4 370.7 351.5 350.8 358.9 299.2 202.9 327.6 422.2 309.6 302.1 220.1 220.3 367.2 308.5 307.7 359.3 301.5 203.6 330.3 421.2 303.3 295.3 221.0 221.2 364.8 279.5 278.6 360.6 301.6 202.2 330.9 422.2 305.7 297.8 222.8 223.0 363.6 289.3 288.7 361.3 301.3 202.4 330.4 423.7 308.6 300.8 224.0 224.2 362.5 299.4 299.1 362.1 303.0 201.5 332.8 425.4 304.7 296.5 224.5 224.7 360.3 280.2 279.8 363.4 304.5 201.6 334.6 428.0 301.3 292.8 224.5 224.7 358.0 265.9 265.3 364.3 304.5 201.8 334.6 428.0 302.2 293.7 224.2 224.5 359.5 271.1 270.6 365.0 302.3 200.3 332.3 428.5 302.6 294.1 226.7 227.1 360.6 263.2 262.6 365.7 307.6 198.9 339.3 428.7 304.3 295.8 230.2 230.7 361.0 260.9 260.2 368.4 311.6 200.0 344.1 431.7 304.8 295.9 231.7 232.2 356.6 261.9 261.2 370.7 312.0 200.4 344.5 437.5 Medical c a re .................................................................................. Medical care commodities.......................................................... Medical care services................................................................. Professional services............................................................... Other medical care services.................................................... 403.1 256.7 435.1 367.3 517.0 433.5 273.6 468.6 390.9 562.6 414.7 262.9 448.0 377.1 533.6 418.2 264.5 451.9 378.9 540.3 422.3 267.4 456.2 381.6 546.4 425.8 269.4 460.1 385.0 550.8 428.0 271.3 462.3 386.9 553.5 429.7 272.3 464.2 388.3 555.9 432.0 273.3 466.8 390.3 559.2 434.8 275.4 469.8 391.7 564.2 437.5 276.0 473.0 393.3 569.4 439.7 276.7 475.7 396.1 571.9 442.3 277.5 478.8 398.0 576.4 444.6 278.2 481.5 399.8 580.3 446.8 280.8 483.4 401.0 583.0 Entertainment................................................................................ Entertainment commodities ........................................................ Entertainment services............................................................... 265.0 260.6 271.8 274.1 265.9 286.3 268.3 262.5 277.1 270.8 264.7 279.9 272.0 265.2 282.1 271.9 265.0 282.2 272.3 264.8 283.5 272.9 265.3 284.2 273.9 266.1 285.5 274.4 265.8 287.0 274.7 266.1 287.3 275.3 265.9 289.2 276.5 266.7 290.8 277.4 267.6 291.8 277.4 267.4 292.2 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.......................................... 326.6 328.5 281.9 278.5 286.0 397.1 350.8 407.7 346.4 351.0 291.3 287.9 295.4 428.8 380.3 440.1 336.5 337.4 286.3 282.5 290.6 415.5 364.7 427.0 339.1 342.7 288.1 285.3 291.8 416.8 371.0 427.6 340.3 344.7 289.1 286.0 293.0 417.7 373.8 428.1 341.1 345.6 290.3 287.3 294.0 417.9 374.3 428.3 341.8 346.5 290.5 287.7 294.1 418.9 374.4 429.5 342.1 346.5 290.9 287.9 294.7 419.5 374.5 430.2 342.6 347.1 291.0 287.0 295.7 420.4 375.7 431.0 344.9 354.3 291.1 287.1 295.8 421.2 375.9 431.9 346.4 356.2 292.3 289.1 296.2 422.9 376.9 433.7 353.3 356.8 292.0 288.2 296.5 445.2 389.4 457.8 354.6 357.2 293.1 289.9 297.1 447.6 392.3 460.2 354.9 357.3 293.4 289.6 297.9 448.2 392.5 460.8 355.2 357.6 293.6 289.6 298.2 448.8 392.6 461.6 1985 1986 All ite m s........................................................................................... All items (1957-59 = 100)................................................................. 322.2 374.7 Food and beverages ..................................................................... Food............................................................................................ Food at home .......................................................................... Cereals and bakery products................................................ Meats, poultry, fish, and eggs............................................... Dairy products........................................................................ Fruits and vegetables............................................................ Other foods at home............................................................. Sugar and sweets............................................................... Fats and o ils ........................................................................ Nonalcoholic beverages...................................................... Other prepared foods.......................................................... Food away from home ............................................................ Alcoholic beverages.................................................................... CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS: See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 79 MONTHLY LABOR REVIEW March 1987 • Current Labor Statistics: Price Data 30. Continued— Consumer Price Index for All Urban Consumers: U.S. city average, by expenditure category and commodity or service group; and CPI for Urban Wage Earners and Clerical Workers, all items (1967 = 100, unless otherwise indicated) Series 1985 Annual average 1986 1985 1986 Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. All item s........................................................................................... Commodities.................................................................................. Food and beverages ................................................................... Commodities less food and beverages...................................... Nondurables less food and beverages ................................... Apparel commodities............................................................. Nondurables less food, beverages, and apparel .................. Durables.................................................................................... 322.2 286.7 302.0 328.4 283.9 311.8 327.4 289.9 305.6 327.5 287.4 307.7 326.0 283.7 307.8 325.3 281.2 308.5 326.3 282.1 309.4 327.9 282.8 309.5 - - - - - - - - - 265.2 192.0 307.3 270.2 286.8 194.2 339.1 271.4 278.6 188.5 329.5 270.5 268.9 190.8 313.6 269.7 262.0 191.7 302.6 269.2 263.3 190.7 305.2 269.6 264.7 188.4 308.4 269.9 328.6 281.9 314.6 258.1 191.2 296.9 269.0 330.5 283.6 315.6 - 328.0 281.9 312.2 259.8 187.0 301.7 269.6 330.2 283.5 315.1 282.1 191.6 333.3 270.7 328.4 290.1 307.9 284.9 189.5 338.7 271.4 261.5 196.6 299.5 269.3 260.4 197.6 297.2 270.5 330.8 284.0 316.4 260.0 197.4 296.7 271.8 331.1 284.2 317.0 260.0 194.9 298.0 271.7 Services.......................................................................................... Rent of shelter (1 2 /8 2 -1 0 0 ).................................................. Household services less rent of shelter (1 2 /8 2 -1 0 0 )........ Transportation services.............................................................. Medical care services................................................................. Other services ............................................................................ 381.5 113.9 111.2 337.0 435.1 314.1 400.5 120.2 112.8 356.3 468.6 331.8 389.5 117.0 110.8 346.1 448.0 322.9 391.7 117.4 111.4 349.0 451.9 324.8 393.3 117.7 111.8 351.0 456.2 326.1 394.9 118.5 111.6 352.4 460.1 326.6 396.8 119.4 111.6 353.2 462.3 327.6 397.9 119.7 112.3 353.4 464.2 328.2 401.0 119.9 115.2 355.3 466.8 329.2 402.3 120.5 114.9 357.1 469.8 330.1 403.7 120.9 115.3 357.3 473.0 330.8 405.5 121.7 114.9 356.2 475.7 337.9 406.1 122.2 112.9 360.5 478.8 339.5 406.1 122.4 111.0 364.4 481.5 340.3 406.6 122.5 110.8 366.2 483.4 340.8 Special indexes: All items less fo o d ...................................................................... All items less shelter.................................................................. All items less homeowners’ costs .............................................. All items less medical care......................................................... Commodities less fo o d ............................................................... Nondurables less food ............................................................... Nondurables less food and apparel ........................................... Nondurables................................................................................ Services less rent of shelter....................................................... 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................................................................... 323.3 303.9 109.7 317.7 272.5 277.2 319.2 293.2 113.5 373.3 426.5 314.8 314.4 259.7 409.9 375.9 328.6 306.7 111.2 322.6 263.4 262.2 297.1 289.6 118.7 390.6 370.3 327.0 327.1 263.2 322.4 397.1 328.9 307.9 111.3 322.6 275.7 282.0 325.1 297.4 115.4 380.8 426.5 320.5 320.7 262.2 417.9 385.8 329.5 308.8 111.6 323.4 274.7 280.4 324.9 297.7 116.2 382.7 424.7 321.8 321.6 261.8 413.2 387.9 328.5 307.4 111.2 322.2 270.9 274.5 316.8 294.3 116.8 384.0 408.9 322.3 322.3 261.6 386.5 389.4 326.6 305.2 110.5 320.5 265.2 265.6 302.7 289.5 117.1 385.4 381.3 323.3 323.6 262.0 343.0 391.5 325.7 303.6 110.1 319.7 261.2 259.2 292.9 286.3 117.4 387.2 361.8 324.4 324.8 262.1 313.3 393.8 326.7 304.7 110.4 320.6 262.1 260.5 295,2 287.4 117.8 388.3 367.6 325.0 325.3 262.2 319.3 394.5 328.6 306.5 111.1 322.2 263.0 261.8 298.1 288.2 119.2 391.3 380.6 325.5 325.9 262.0 327.1 395.9 328.0 306.1 111.0 322.1 260.2 257.3 292.2 287.1 119.5 392.5 366.5 326.9 326.9 262.0 306.6 397.7 328.1 306.4 111.2 322.6 259.0 255.6 287.9 287.4 119.8 393.6 358.6 328.3 327.9 262.9 292.4 399.0 330.0 307.9 111.7 324.2 261.1 258.9 290.2 289.4 120.2 395.4 360.6 330.0 329.9 264.5 297.7 401.4 330.2 307.8 111.7 324.4 260.9 257.8 288.1 289.0 120.1 395.7 348.6 331.4 331.6 265.5 290.6 403.7 330.4 308.0 111.8 324.5 261.2 257.4 287.7 289.2 120.0 395.4 341.7 332.3 332.5 266.1 288.5 405.0 330.6 308.3 111.9 324.8 261.2 257.5 288.9 289.5 120.2 395.8 342.4 332.6 332.8 265.8 290.5 405.7 Purchasing power of the consumer dollar: 1967-$1.00................................................................................ 1957-59 = $1.00........................................................................... 31.0 26.7 30.5 26.2 30.5 26.3 30.5 26.2 30.5 26.3 30.7 26.4 30.7 26.4 30.6 26.4 30.5 26.2 30.5 26.2 30.4 26.2 30.3 26.0 30.3 26.0 30.2 26.0 30.2 26.0 CONSUMER PRICE INDEX FOR URBAN WAGE EARNERS AND CLERICAL WORKERS: All Items ......................................................................................... All items (1957-59=100)................................................................. 318.5 370.4 323.4 376.1 323.4 376.1 324.3 377.1 323.2 375.8 321.4 373.7 320.4 372.6 321.4 373.7 323.0 375.6 322.9 375.5 323.4 376.1 324.9 377.8 325.0 378.0 325.4 378.4 325.7 378.8 Food and beverages ..................................................................... Food............................................................................................ 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.................................................................... 301.8 309.3 295.3 315.4 262.7 256.9 320.3 361.5 398.3 293.9 453.2 295.7 349.7 232.6 311.6 319.2 303.7 324.2 274.4 257.1 323.8 373.5 410.5 287.2 478.1 303.2 363.4 242.5 305.4 312.8 297.9 320.4 269.2 255.7 319.3 361.6 401.8 289.6 450.4 298.7 355.2 239.1 307.7 315.1 300.9 320.4 270.7 256.0 329.7 366.1 404.7 291.6 461.0 299.4 356.2 240.1 307.5 314.9 300.1 320.9 267.7 256.0 316.0 375.2 408.1 290.8 485.5 300.9 357.3 240.9 307.6 315.0 299.7 321.1 267.2 255.5 314.6 375.6 407.8 289.7 487.4 300.7 358.6 241.4 308.3 315.6 299.9 320.9 263.5 255.5 325.0 376.0 410.9 287.8 487.0 301.6 360.2 242.3 309.0 316.4 300.4 322.1 262.6 255.8 331.6 374.3 410.6 286.6 481.2 302.7 362.0 242.2 309.3 316.6 300.0 324.5 264.2 255.9 323.5 373.9 410.9 286.4 479.5 303.0 363.5 242.9 312.0 319.5 303.9 324.6 274.0 257.0 325.6 373.4 411.9 286.6 477.6 303.1 364.2 243.4 314.5 322.3 307.3 326.7 282.2 256.9 327.2 373.9 412.6 287.1 476.9 304.5 365.2 243.0 315.0 322.8 307.5 326.8 284.0 257.1 324.2 373.5 413.0 285.1 475.5 305.2 366.6 243.4 315.4 323.3 307.9 326.8 284.4 258.6 322.9 374.4 412.8 284.1 477.7 305.9 367.3 243.5 316.2 324.2 308.4 327.0 285.8 259.9 322.2 373.9 411.9 284.5 477.1 305.3 369.2 243.4 316.8 324.8 308.7 328.0 286.6 260.9 323.4 372.2 411.2 285.5 470.3 306.6 370.5 243.9 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 (1 2 /8 4 -1 0 0 )...................................... Maintenance and repairs.......................................................... Maintenance and repair services .......................................... Maintenance and repair commodities................................... Fuel and other utilities................................................................ Fuels ......................................................................................... Fuel oil, coal, and bottled g a s ............................................... Gas (piped) and electricity .................................................... Other utilities and public services ............................................ Household furnishings and operations....................................... Housefurnishings...................................................................... Housekeeping supplies............................................................. Housekeeping services............................................................. 343.3 370.4 263.7 397.9 103.1 103.0 103.2 364.1 415.0 261.1 394.7 487.5 622.0 451.6 241.6 243.4 197.6 310.7 340.2 353.2 390.7 279.1 416.0 108.8 108.8 109.4 369.4 425.3 262.5 385.4 462.7 504.5 445.6 253.8 246.5 198.4 317.1 348.2 349.1 380.4 271.5 397.5 105.9 105.9 105.7 368.5 420.1 264.2 394.3 483.1 659.9 438.8 246.7 245.2 197.8 315.0 345.0 350.1 381.8 272.5 400.8 106.3 106.3 106.3 373.2 426.2 267.2 395.6 484.1 652.7 441.4 248.3 245.1 197.3 315.8 345.6 349.7 382.9 272.8 403.5 106.6 106.6 107.8 374.0 426.5 268.1 390.9 475.7 593.6 443.2 248.8 245.3 197.2 316.4 346.3 350.1 385.0 274.1 405.4 107.4 107.3 108.2 364.7 416.6 261.1 386.3 467.1 552.8 441.2 249.9 246.0 198.5 315.5 346.6 351.1 388.1 277.0 411.6 108.1 108.1 108.5 364.6 419.2 259.4 382.6 459.1 521.5 438.0 252.1 246.0 198.1 316.3 347.1 351.6 388.8 277.5 411.3 108.3 108.3 109.0 363.8 420.0 258.0 383.0 459.7 499.9 443.0 252.2 246.1 198.4 315.7 347.4 354.3 389.4 278.5 415.5 108.4 108.4 109.1 363.2 422.6 255.7 394.9 477.3 489.9 465.7 255.8 246.2 198.2 316.8 347.8 354.5 391.5 280.3 420.4 108.8 108.8 110.1 366.7 425.2 259.0 390.3 469.1 462.9 461.4 256.3 246.5 198.4 317.1 348.4 355.4 392.9 280.8 426.1 109.3 109.2 110.1 371.5 428.6 263.5 390.6 469.3 450.7 464.1 256.6 246.6 198.3 317.3 349.1 356.6 395.2 282.2 428.9 110.0 110.0 110.4 370.6 430.7 261.1 389.1 467.1 456.6 460.3 256.2 247.5 199.4 317.9 349.5 355.6 397.1 283.6 426.7 110.5 110.5 110.8 373.1 431.1 264.3 379.3 449.2 454.8 439.6 257.8 247.5 199.3 317.8 350.1 354.3 397.8 284.6 424.8 110.7 110.7 111.3 372.4 428.2 265.0 371.3 437.1 455.0 425.3 255.8 247.2 198.5 318.4 350.1 354.8 398.1 285.1 417.3 110.8 110.8 111.7 374.6 428.1 268.0 371.1 437.3 463.5 423.8 255.3 248.5 199.7 320.6 350.8 Apparel and upkeep ...................................................................... 205.0 206.5 208.1 204.1 203.1 205.2 206.1 205.1 203.0 201.8 205.9 211.0 211.9 211.5 209.6 See footnotes at end of table. 80 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - 30. Continued— Consumer Price Index for All Urban Consumers: U.S. city average, by expenditure category and commodity or service group; and CPI for Urban Wage Earners and Clerical Workers, all items (1967=100, unless otherwise indicated) 1986 1985 Annual Series Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 191.5 199.7 169.4 329.4 211.8 206.1 332.0 194.1 202.2 174.5 317.3 213.6 202.4 324.4 189.4 198.8 166.1 332.7 209.9 203.5 327.2 188.2 196.8 165.2 328.6 208.4 204.2 328.1 190.4 198.0 169.0 329.6 210.7 203.5 329.0 191.2 199.3 169.3 331.3 212.1 204.1 330.2 190.1 200.0 165.9 334.3 212.0 203.8 330.9 187.7 198.0 162.0 335.6 210.6 204.5 331.9 186.3 195.4 160.8 323.7 209.6 206.5 332.2 190.8 197.1 169.3 328.6 209.9 209.5 332.3 196.2 202.3 178.1 326.2 212.0 209.0 334.2 197.1 203.6 178.1 329.2 215.3 207.9 335.6 196.6 204.6 176.2 323.8 215.6 208.9 336.2 194.5 202.1 173.1 329.3 214.9 207.8 336.6 321.6 317.4 214.2 214.5 379.7 375.4 375.0 352.6 287.7 204.7 312.3 391.7 307.6 301.5 223.3 223.6 363.2 293.1 292.5 364.7 302.2 203.9 330.9 416.3 325.3 320.8 218.6 218.8 375.6 379.6 378.9 359.0 294.7 204.3 321.3 400.2 325.1 320.2 219.0 219.2 374.1 375.3 374.6 359.4 296.9 205.6 323.7 408.6 320.1 314.8 219.4 219.7 370.7 353.0 352.3 360.4 298.4 205.4 325.7 412.6 310.3 304.5 219.4 219.5 367.2 309.6 308.8 360.9 300.6 206.0 328.3 412.0 303.5 297.4 220.2 220.4 364.8 280.1 279.1 362.2 300.4 204.6 328.5 413.0 305.9 308.7 299.9 302.8 222.0 223.2 222.3 223.4 363.6 362.5 290.3 300.6 289.6 300.3 362.8 363.6 299.8 301.2 204.9 203.9 327.7 329.6 413.8 .415.1 304.6 298.3 223.7 223.9 360.3 280.9 280.5 365.0 302.4 203.8 331.2 418.0 300.9 294.4 223.6 223.9 358.0 266.7 266.1 365.7 302.2 204.0 330.9 418.4 301.8 295.3 223.3 223.7 359.5 271.9 271.4 366.6 299.7 202.7 328.1 418.8 302.2 295.7 225.7 226.3 360.6 264.0 263.4 367.2 305.2 201.1 335.4 418.9 304.0 297.5 229.4 230.0 361.0 262.0 261.3 369.7 309.5 202.3 340.7 421.1 304.2 297.5 230.7 231.4 356.6 263.2 262.5 372.3 309.9 202.8 341.0 425.8 Medical c a re .................................................................................. Medical care commodities.......................................................... Medical care services................................................................. Professional services............................................................... Other medical care services.................................................... 401.2 256.3 432.7 367.7 513.9 431.0 272.8 465.7 391.4 559.0 412.6 262.3 445.4 377.6 530.4 416.0 264.1 449.2 379.3 536.9 420.0 267.0 453.5 382.2 543.0 423.5 268.8 457.3 385.6 547.3 425.7 270.7 459.5 387.4 550.0 427.3 271.7 461.3 388.8 552.3 429.6 272.5 464.0 390.8 555.8 432.4 274.6 466.9 392.3 560.7 435.0 275.2 470.1 394.0 565.8 437.1 275.8 472.6 396.6 568.1 439.7 276.6 475.6 398.4 572.7 441.7 277.0 478.2 400.2 576.2 443.9 279.8 480.1 401.5 579.0 Entertainment................................................................................ Entertainment commodities ........................................................ Entertainment services............................................................... 260.1 254.2 271.6 268.7 259.5 286.0 263.0 255.7 276.8 265.4 257.8 280.0 266.5 258.3 282.0 266.5 258.3 282.1 266.9 258.4 283.0 267.3 258.7 283.6 268.4 259.8 284.8 269.0 259.6 286.5 269.2 259.8 286.7 270.0 259.8 288.9 271.1 260.6 290.7 272.1 261.7 291.6 272.3 261.7 292.0 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.......................................... 322.7 328.1 279.6 279.0 280.5 399.3 355.7 410.1 341.7 350.7 289.0 288.6 289.8 430.7 384.8 442.0 331.9 337.1 284.0 283.3 285.2 417.4 369.4 429.1 334.9 342.4 285.9 285.9 286.4 418.9 375.6 429.7 336.1 344.4 286.8 286.7 287.4 419.9 378.4 430.3 337.0 345.2 288.0 288.1 288.4 420.1 379.0 430.5 337.6 346.0 288.2 288.4 288.4 421.2 379.1 431.8 338.0 346.0 288.6 288.6 289.0 422.0 379.1 432.8 338.4 346.7 288.6 287.6 290.0 422.9 380.2 433.6 341.2 354.0 288.8 287.8 290.2 423.8 380.5 434.6 342.6 355.9 289.9 289.7 290.5 425.1 381.4 436.0 347.5 356.5 289.5 288.7 290.8 446.1 393.9 458.7 348.8 356.8 290.8 290.5 291.6 448.7 396.7 461.3 349.2 356.9 291.2 290.5 292.4 449.4 396.9 462.1 349.5 357.2 291.3 290.3 292.7 450.0 397.1 462.8 All ite m s........................................................................................... Commodities.................................................................................. Food and beverages ................................................................... Commodities less food and beverages...................................... Nondurables less food and beverages ................................... Apparel commodities.............................................................. Nondurables less food, beverages, and apparel .................. Durables.................................................................................... 318.5 286.5 301.8 323.4 283.1 311.6 323.4 289.7 305.4 324.3 289.8 307.7 323.2 287.0 307.5 321.4 283.1 307.6 320.4 280.4 308.3 321.4 281.3 309.0 323.0 282.0 309.3 322.9 281.1 312.0 323.4 281.1 314.5 - - - - - - - - - - - 283.8 191.3 334.2 265.2 265.6 191.5 306.7 264.0 288.7 194.1 340.1 265.7 286.9 189.4 339.6 265.6 280.1 188.2 330.1 264.6 269.6 190.4 313.2 263.7 262.0 191.2 301.6 263.3 263.6 190.1 304.5 263.5 265.2 187.7 308.0 263.6 260.1 186.3 301.0 263.2 258.1 190.8 295.9 262.6 324.9 282.6 315.0 261.5 196.2 298.4 263.0 325.0 282.6 315.4 260.2 197.1 296.0 264.0 325.4 283.1 316.2 259.7 196.6 295.6 265.3 325.7 283.3 316.8 259.9 194.5 296.9 265.0 Services.......................................................................................... Rent of shelter (12/84—100)..................................................... Household services less rent of shelter (12/84=100).............. Transportation services.............................................................. Medical care services................................................................. Other services ............................................................................. 377.3 103.2 102.6 332.2 432.7 310.1 395.7 109.0 103.9 350.1 465.7 326.9 385.1 106.1 102.0 340.5 445.4 318.3 387.2 106.4 102.6 343.3 449.2 320.4 388.8 106.7 103.0 345.4 453.5 321.6 390.5 107.4 102.8 347.0 457.3 322.1 392.2 108.3 102.7 347.5 459.5 322.9 393.2 108.5 103.4 347.3 461.3 323.6 396.4 108.7 106.4 348.9 464.0 324.6 397.7 109.2 106.0 350.6 466.9 325.6 399.0 109.6 106.4 350.7 470.1 326.0 400.4 110.3 106.0 349.2 472.6 332.2 401.0 110.8 103.8 353.8 475.6 333.8 401.0 111.0 102.0 357.9 478.2 334.7 401.5 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 (12/8 4=1 0 0 )................................ 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................................................................... 319.4 303.4 101.8 314.3 272.8 279.0 320.3 293.9 102.6 369.0 426.3 309.9 308.7 256.8 410.9 371.1 323.0 305.1 102.8 318.0 262.9 262.7 296.9 289.8 107.1 385.9 367.5 321.2 320.3 259.8 322.9 391.9 324.6 307.2 103.2 318.9 275.9 283.9 326.3 298.2 104.2 376.2 426.8 315.3 314.6 259.2 418.9 380.8 325.1 307.9 103.5 319.6 275.0 282.3 325.9 298.4 104.9 378.2 424.7 316.5 315.4 258.8 414.1 382.9 323.8 306.4 103.0 318.3 270.9 276.1 317.5 295.0 105.5 379.5 408.1 316.9 316.1 258.5 387.3 384.5 321.5 303.8 102.3 316.2 264.9 266.4 302.6 289.8 105.7 381.0 379.0 317.8 317.2 258.7 343.3 386.5 320.2 302.1 101.8 315.2 260.7 259.4 292.2 286.3 105.9 382.7 358.4 318.8 318.3 258.8 312.9 388.8 321.2 303.0 102.1 316.1 261.6 260.9 294.9 287.5 106.2 383.6 364.6 319.2 318.6 258.8 319.8 389.4 323.2 304.8 102.7 317.7 262.6 262.4 298.0 288.4 107.6 386.8 378.1 319.7 319.1 258.5 328.1 390.8 322.3 304.3 102.6 317.4 259.6 257.7 291.8 287.2 107.8 387.9 363.1 321.1 320.1 258.5 307.2 392.6 322.2 304.6 102.7 317.8 258.3 255.8 287.3 287.5 108.1 389.0 354.8 322.4 321.0 259.3 292.9 393.7 323.9 305.9 103.2 319.3 260.3 259.1 289.6 289.5 108.3 390.3 356.9 323.9 322.7 260.9 298.2 395.7 324.0 305.7 103.2 319.3 260.0 257.8 287.4 289.0 108.2 390.6 344.8 325.3 324.4 261.7 290.9 398.2 324.2 305.9 103.2 319.6 260.3 257.4 287.0 289.2 108.1 390.4 338.5 326.3 325.4 262.4 289.1 399.6 324.4 306.3 103.4 319.8 260.4 257.6 288.2 289.6 108.3 390.7 339.2 326.5 325.6 262.1 291.1 400.2 Purchasing power of the consumer dollar: 1967- $1.00................................................................................ 1957-59 = $1.00........................................................................... 31.4 27.0 30.9 26.6 30.9 26.6 30.8 26.5 30.9 31.1 26.8 31.2 26.8 31.1 26.8 31.0 26.6 31.0 26.6 30.9 26.6 30.8 26.5 30.8 26.5 30.7 26.4 30.7 26.4 1985 1986 Apparel commodities.................................................................. Men’s and boys’ apparel.......................................................... Women’s and girls’ apparel ..................................................... Infants’ and toddlers’ apparel.................................................. Footwear................................................................................... Other apparel commodities...................................................... Apparel services......................................................................... 191.3 198.2 171.3 311.7 212.5 203.1 318.5 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................................................................... - 26.6 111.1 101.8 359.5 480.1 335.1 Data not available. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The revised CPI data for January and February will appear in the April R e v ie w . 81 MONTHLY LABOR REVIEW March 1987 • Current Labor Statistics: Price Data 31. Consumer Price Index: U.S. city average and available local area data: all items (1967 = 100, unless otherwise indicated) Urban Wage Earners All Urban Consumers Area1 Pricing Other sche index base dule2 Dec. Anchorage, Alaska (10/67 - 100) ..................... Baltimore, Md.......................... Boston, Mass.......................... Cincinnati, Ohio-Ky.-Ind........... Denver-Boulder, Colo.............. Miami, Fla. (11/77 = 100)..... Milwaukee, Wis........................ Northeast, Pa.......................... Portland, Oreg.-Wash.............. St. Louis, Mo.-lll....................... San Diego, Calif....................... Seattle-Everett, Wash............. Washington, D.C.-Md.-Va........ Jan. Aug. 1986 1985 Sept. Oct. Nov. Dec. Dec. Jan. Aug. Sept. Oct. Nov. Dec. 330.8 331.1 323.4 324.3 323.4 324.9 325.0 325.4 325.7 - 327.4 328.4 328.6 330.2 330.5 M M - 325.9 323.1 326.3 323.1 331.4 323.2 333.9 321.1 328.7 324.3 331.3 325.3 331.0 324.7 312.6 313.1 312.9 313.4 316.2 312.8 318.3 310.5 313.4 313.6 316.1 314.7 315.8 314.0 M - 326.1 326.8 330.9 334.6 336.2 333.8 332.9 320.1 320.9 323.5 326.8 328.3 326.3 325.3 M M - 329.1 325.2 313.5 322.5 315.8 323.0 317.2 324.4 317.5 326.7 318.7 326.1 318.6 325.4 320.1 326.6 U.S. city average................... Chicago, III.-Northwestern Ind........................................... Detroit, Mich............................ Los Angeles-Long Beach, Anaheim, Calif........................ New York, N.Y.-Northeastern N.J.......................................... Philadelphia, Pa.-N.J............... 1986 1985 320.8 319.7 323.1 320.3 325.9 323.1 326.6 325.8 327.8 324.7 327.5 324.1 - 287.1 332.0 327.1 333.2 364.4 174.6 333.9 311.6 321.3 322.4 381.9 327.0 331.1 - 286.2 334.0 328.2 333.0 362.9 174.3 332.9 311.3 318.0 325.7 385.9 326.3 332.3 - 287.8 333.4 329.3 335.5 361.2 175.8 330.7 313.5 318.0 323.8 387.5 325.9 334.0 “ - - 280.2 331.1 324.5 326.0 359.1 175.7 353.0 310.6 311.0 319.1 344.7 313.5 332.6 - 277.9 330.9 325.2 324.7 357.2 174.5 351.7 310.2 306.3 320.7 347.4 312.3 334.6 - 279.7 330.4 325.9 327.6 355.2 176.1 349.4 311.9 306.1 319.0 349.0 311.7 335.9 355.3 - - 335.3 309.8 348.8 344.5 298.5 336.8 321.8 _ - 338.9 307.5 352.7 346.2 301.5 332.9 323.9 _ - 339.9 309.4 352.1 345.9 302.2 334.0 323.7 _ - 342.2 311.4 351.8 342.8 305.4 331.0 324.7 332.6 295.9 327.5 338.3 305.8 334.1 311.7 _ - 335.4 292.5 329.9 339.1 308.3 330.5 311.9 _ - 335.9 294.2 329.3 338.5 308.8 331.7 311.3 _ - 337.8 296.1 328.9 335.0 312.7 328.5 312.4 - 1 10/67 1 1 1 1 1 11/77 1 1 1 1 1 1 1 2 2 2 2 2 2 2 _ Alanta, Ga............................... Buffalo, N.Y............................. Cleveland, O h io ..................... Dallas-Ft. Worth, Tex.............. Honolulu, Hawaii.................... Houston, Tex........................... Kansas City, Mo.-Kansas ...... Mlnneapolis-St. Paul, Minn.-Wis................................ Pittsburgh, Pa.......................... San Francisco-Oakland, Calif. 2 2 2 - 340.4 331.5 336.4 - 340.3 330.1 345.5 - 340.9 331.8 347.7 - 342.4 333.0 343.6 336.0 312.8 331.3 - 334.5 309.2 339.0 - 334.6 310.6 341.1 - 335.9 311.8 337.0 Region3 Northeast............................. North Central....................... South................................... West .................................... 2 2 2 2 12/77 12/77 12/77 12/77 174.3 176.0 176.3 177.2 - 175.0 176.2 176.4 179.0 - 176.4 176.5 177.5 180.4 - 177.2 177.1 177.9 179.6 172.1 172.6 176.0 175.2 - 172.2 172.2 175.3 176.4 - 173.5 172.4 176.3 177.8 - 174.3 173.0 176.5 177.0 Population size class3 A-1 ....................................... A-2 ....................................... B ........................................... C .......................................... D .......................................... 2 2 2 2 2 12/77 12/77 12/77 12/77 12/77 174.2 178.4 177.2 174.9 174.7 - 176.6 179.1 176.6 175.0 173.8 - 177.6 179.9 178.3 175.9 174.5 - 177.7 180.0 178.7 176.5 175.4 170.2 175.4 174.6 175.3 176.0 - 171.8 175.3 173.5 174.8 174.5 - 172.5 176.0 175.1 175.7 175.1 - 172.8 176.1 175.5 176.2 175.9 Region/population size class cross classification3 Class A: Northeast .......................... North Central.................... South ................................. W est.................................. 2 2 2 2 12/77 12/77 12/77 11/77 171.2 179.4 176.5 179.3 - - 174.2 180.3 177.6 184.2 - 174.7 181.0 177.9 182.6 167.7 174.5 176.5 175.0 - - 173.1 180.7 176.7 182.0 168.8 175.0 176.1 176.9 - 169.7 174.5 176.9 179.0 - 170.3 175.3 177.0 177.5 Class B: Northeast .......................... North Central.................... South................................. W est.................................. 2 2 2 2 12/77 12/77 12/77 12/77 176.7 174.2 178.0 178.4 - 174.7 172.5 178.6 178.1 - 178.0 174.0 180.0 179.2 - 178.3 176.1 179.9 178.9 173.5 170.5 174.7 178.9 - 171.8 168.1 174.6 178.3 “ 174.6 169.5 175.7 179.3 - 175.1 171.5 175.6 179.0 See footnotes at end of table. 82 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - - - - - * - - - 31. Continued— Consumer Price Index: U.S. city average and available local area data: all items (1967=100, unless otherwise indicated) Urban Wage Earners All Urban Consumers Area1 Pricing sche dule2 Other index base 1986 1985 Dec. Jan. Aug. Sept. Nov. Oct. Dec. Dec. 186.3 171.9 176.4 172.9 188.8 168.2 176.7 167.8 179.8 171.6 176.6 176.3 177.7 174.2 176.1 177.7 Class C: 2 2 2 2 12/77 12/77 12/77 12/77 184.1 171.5 175.3 169.1 2 2 2 2 12/77 12/77 12/77 12/77 178.1 172.6 174.5 176.2 _ _ _ 182.8 171.2 174.8 173.0 183.8 172.3 175.8 173.1 _ _ _ _ - Class D: _ _ _ 176.8 171.4 174.3 174.9 178.1 171.7 175.4 175.3 _ _ - 1986 1985 _ - Jan. Aug. Sept. 187.2 167.7 175.3 171.1 - 176.2 172.4 175.0 176.3 - - - Oct. 188.1 168.7 176.3 171.2 177.2 172.7 175.9 176.7 Nov. - - The revised CPI data for January and February will appear in the April R e v ie w . Annual data: Consumer Price Index all items and major groups Series 1978 1979 1980 1981 1982 1983 1984 1985 1986 195.4 7.7 217.4 11.3 246.8 13.5 272.4 10.4 289.1 6.1 298.4 3.2 311.1 4.3 322.2 3.6 328.4 1.9 206.3 9.7 228.5 10.8 248.0 8.5 267.3 7.8 278.2 4.1 284.4 2.2 295.1 3.8 302.0 2.3 311.8 3.2 202.8 8.7 227.6 12.2 263.3 15.7 293.5 11.5 314.7 7.2 323.1 2.7 336.5 4.1 349.9 4.0 360.2 2.9 159.6 3.5 166.6 4.4 178.4 7.1 186.9 4.8 191.8 2.6 196.5 2.5 200.2 1.9 206.0 2.9 207.8 .9 185.5 4.7 212.0 14.3 249.7 17.8 280.0 12.1 291.5 4.1 298.4 2.4 311.7 4.5 319.9 2.6 307.5 -3.9 219.4 8.4 239.7 9.3 265.9 10.9 294.5 10.8 328.7 11.6 357.3 8.7 379.5 6.2 403.1 6.2 433.5 7.5 176.6 5.3 188.5 6.7 205.3 8.9 221.4 7.8 235.8 6.5 246.0 4.3 255.1 3.7 265.0 3.9 274.1 3.4 183.3 6.4 196.7 7.3 214.5 9.0 235.7 9.9 259.9 10.3 288.3 10.9 307.7 6.7 326.6 6.1 346.4 6.1 195.3 7.6 217.7 11.5 247.0 13.5 272.3 10.2 288.6 6.0 297.4 3.0 307.6 3.4 318.5 3.5 323.4 1.5 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 190.5 168.4 176.7 171.1 178.9 172.7 177.0 177.6 A-2 - 1,250,000 to 4,000,000. B - 385,000 to 1,250,000 C - 75,000 to 385,000. D - Less than 75,000. Population size class A is the aggregation of population size classes A-1 and A-2. - 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. 1 Area is generally the Standard Metropolitan Statistical Area (SMSA), exclusive of farms. L.A.-Long Beach, Anaheim, Calif, is a combination of two SMSA’s, and N.Y., N.Y.-Northeastern N.J. and Chicago, lll.-Northwestern Ind. are the more extensive Standard Consolidated Areas. Area defini tions are those established by the Office of Management and Budget in 1973, except for Denver-Boulder, Colo, which does not include Douglas County. Definitions do not include revisions made since 1973. 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. 3 Regions are defined as the four Census regions. The population size classes are aggregations of areas which have urban population as defined: A-1 - More than 4,000,000. 32. Dec. MONTHLY LABOR REVIEW 33. March 1987 • Current Labor Statistics: Price Data Producer Price Indexes, by stage of processing (1967 = 100) 1986 Annual average Grouping 1985 Finished goods ............................................ Finished consumer goods ......................... Finished consumer fo o d s ........................ Finished consumer goods excluding foods ......................................................... Nondurable goods less food .............. Durable goods ....................................... Capital equ ipm ent....................................... 293.7 291.8 271.2 84 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Apr. May June July Aug. Sept. Oct. Nov. Dec. 296.0 293.8 275.0 291.9 288.4 272.0 288.0 283.4 271.6 287.2 281.9 271.9 288.9 284.1 274.8 289.3 284.5 275.1 287.6 282.3 280.4 288.1 283.0 284.0 287.5 282.7 282.2 290.5 284.9 282.9 290.7 285.0 283.0 289.9 284.2 282.9 291.8 328.0 243.9 304.3 284.6 315.4 243.7 304.3 282.2 309.8 245.7 305.6 284.0 313.0 245.5 305.7 284.4 313.5 245.9 306.1 278.3 302.6 246.2 306.4 277.5 301.6 245.8 306.2 278.1 304.8 242.7 304.2 281.0 301.9 253.6 310.1 281.1 302.1 253.5 310.5 279.9 300.5 252.9 310.1 318.7 - 317.4 313.5 309.5 307.1 306.7 306.8 304.8 304.5 306.1 304.9 304.9 305.0 299.5 258.8 285.9 320.2 291.5 - - 297.1 252.8 283.8 313.4 293.1 296.5 249.2 282.4 313.1 293.6 296.4 246.7 282.5 313.6 293.7 295.5 244.8 279.3 313.7 294.1 295.4 248.7 278.2 313.2 294.1 295.1 247.9 277.8 312.9 294.1 295.6 251.7 277.7 313.0 294.6 296.0 255.5 277.1 313.6 294.9 296.2 254.3 277.3 314.5 295.1 296.5 253.2 277.7 315.4 294.9 296.5 253.2 278.1 315.0 295.0 296.2 253.0 277.9 313.8 295.2 316.2 540.8 311.2 286.6 316.5 500.8 310.9 286.4 317.0 453.4 312.3 286.8 318.3 428.5 312.8 287.2 318.3 424.2 313.6 287.1 317.8 426.7 314.0 287.3 317.9 401.1 314.6 287.2 317.6 395.0 316.2 287.1 317.9 409.1 317.8 287.9 317.3 395.1 318.4 287.5 317.6 393.2 319.6 287.9 317.0 396.2 319.7 288.3 301.0 231.7 450.6 289.0 227.2 422.7 281.1 224.4 403.9 273.7 220.3 389.4 279.4 229.9 386.9 276.9 227.1 384.8 277.7 234.4 370.8 276.3 238.1 358.3 275.5 231.9 369.6 276.7 233.7 369.8 278.4 235.9 369.7 274.8 232.8 365.1 296.3 629.3 272.2 264.0 272.5 291.2 554.1 272.1 263.9 272.5 289.9 517.2 273.1 264.9 273.9 291.2 534.1 274.0 266.1 274.0 291.6 536.4 274.3 266.3 274.3 287.4 461.6 276.4 268.9 275.0 286.8 456.2 277.2 270.0 274.8 286.6 477.2 275.4 268.4 273.1 290.5 454.9 279.7 272.2 278.8 290.7 452.9 280.0 272.4 279.1 289.7 446.8 279.5 271.9 278.5 306.1 235.0 459.2 1 Crude nonfood materials except fuel. - _ Mar. “ Crude m aterials fo r fu rth e r processing ... Foodstuffs and feedstuffs ......................... Nonfood materials1...................................... Crude energy m aterials................................... Crude materials less energy ......................... Crude nonfood materials less e n e rg y.......... - Feb. 298.3 339.6 243.5 303.9 315.2 548.9 311.2 284.2 Intermediate materials less foods and fe e d s ................................................................. Intermediate foods and fe e d s ........................ Intermediate energy goods ............................ Intermediate goods less energy ................... Intermediate materials less foods and e n e rg y.............................................................. _ Jan. 297.3 339.3 241.5 300.5 Interm ediate m aterials, supplies, and c o m p o n e n ts ................................................. Materials and components for manufacturing ............................................ Materials for food m anufacturing.......... Materials for nondurable manufacturing Materials for durable m anufacturing..... Components for m anufacturing............. Materials and components for construction................................................ Processed fuels and lubricants................ C ontainers.................................................... S upplies........................................................ Special groupings Finished goods, excluding fo o d s .................. Finished energy goods ................................... Finished goods less energy ........................... Finished consumer goods less e n e rg y........ Finished goods less food and energy ......... Finished consumer goods less food and e n e rg y............................................................... Consumer nondurable goods less food and e n e rg y .............................................................. 1986 - - - - _ - - _ - “ 299.0 720.9 269.2 261.3 268.7 - - 300.7 700.9 272.7 264.8 272.1 252.1 - 255.5 256.0 256.0 257.3 257.5 257.7 258.7 258.4 256.9 262.4 262.7 262.0 246.2 - 250.5 251.1 251.2 252.0 252.3 252.5 253.9 253.8 253.6 254.4 254.9 254.2 - 323.6 232.6 520.0 303.4 319.7 228.9 482.0 303.0 315.5 227.8 437.0 303.3 313.0 227.0 413.3 303.1 312.4 229.3 409.1 303.0 312.5 229.0 411.1 302.9 310.4 230.3 386.6 303.3 309.9 232.1 380.7 303.5 311.5 233.3 393.8 304.0 310.4 229.8 380.5 303.9 310.4 230.9 378.7 304.2 310.5 231.7 381.3 304.0 - 304.3 304.2 304.5 304.3 304.0 303.8 304.1 304.2 304.7 304.9 305.1 304.8 732.8 229.8 245.8 662.9 226.5 246.5 614.5 224.7 247.9 577.0 221.9 249.1 570.6 229.2 249.3 563.9 227.3 250.1 528.8 232.8 250.0 520.4 232.4 235.9 544.1 228.5 239.2 539.2 230.5 242.3 535.3 232.7 244.5 519.5 230.9 246.9 325.0 232.8 528.3 304.0 305.2 748.1 233.2 249.7 - - - _ - “ - Data not available. 34. Producer Price indexes, by durability of product (1967 = 100) 1986 Annual average Grouping 1985 1986 _ Total durable g o o d s ........................................ Total nondurable g o o d s .................................. 297.3 317.2 Total m anufactures.......................................... D u rab le........................................................... N ondurable.................................................... 304.3 298.1 310.5 - Total raw or slightly processed goods ........ D u rab le........................................................... N o ndurable.................................................... 327.9 252.2 332.4 - - . - Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. 298.1 316.8 298.4 308.4 298.6 300.7 299.7 296.0 299.6 297.9 299.7 297.7 300.0 294.5 299.9 294.2 299.2 295.6 302.3 294.2 302.5 294.6 302.1 294.0 304.8 299.0 310.6 301.1 299.3 302.9 297.3 299.4 294.9 296.1 300.5 291.2 296.7 300.4 292.6 296.9 300.5 293.0 295.2 300.9 289.1 295.5 300.8 289.7 296.2 300.1 292.0 297.0 303.2 290.2 297.2 303.4 290.5 297.2 302.9 290.9 326.0 248.2 330.6 316.3 251.2 320.2 310.3 252.4 313.6 303.0 253.1 305.8 306.2 252.1 309.3 304.2 251.2 307.2 303.2 249.6 306.2 300.4 252.0 303.0 299.2 253.2 301.7 298.8 252.0 301.4 299.9 254.3 302.4 296.3 254.7 298.4 Data not available. 35. Annual data: Producer Price Indexes, by stage of processing (1967 = 100) Index 1977 1978 1979 1980 1981 1982 1983 1984 1985 181.7 180.7 184.6 195.9 194.9 199.2 217.7 217.9 216.5 247.0 248.9 239.8 269.8 271.3 264.3 280.7 281.0 279.4 285.2 284.6 287.2 291.1 290.3 294.0 293.7 291.8 300.5 201.5 215.6 243.2 280.3 306.0 310.4 312.3 320.0 318.7 299.5 315.2 548.9 311.2 284.2 306.1 235.0 459.2 909.6 Finished goods: Capital equipment ............................................... Intermediate materials, supplies, and components: T o ta l........................................................................... Materials and components for Materials and components for construction .... Processed fuels and lubricants ......................... S u pplies................................................................. 195.4 203.4 282.5 188.3 188.7 208.7 224.7 295.3 202.8 198.5 234.4 247.4 364.8 226.8 218.2 265.7 268.3 503.0 254.5 244.5 286.1 287.6 595.4 276.1 263.8 289.8 293.7 591.7 285.6 272.1 293.4 301.8 564.8 286.6 277.1 301.8 310.3 566.2 302.3 283.4 209.2 192.1 245.0 372.1 234.4 216.2 272.3 426.8 274.3 247.9 330.0 507.6 304.6 259.2 401.0 615.0 329.0 257.4 482.3 751.2 319.5 247.8 473.9 886.1 323.6 252.2 477.4 931.5 330.8 259.5 484.5 931.3 Crude materials for further processing: Foodstuffs and fe e d s tu ffs .................................. Nonfood materials except fuel .......................... Fuel ........................................................................ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 85 MONTHLY LABOR REVIEW March 1987 • Current Labor Statistics: Price Data 36. U.S. export price indexes by Standard International Trade Classification (June 1977 = 100, unless otherwise indicated) Category 1974 SITC ALL COMMODITIES ( 9 /8 3 - 1 0 0 ) ..................................................................... 0 01 Food ( 3 /8 3 - 1 0 0 ) ................................................................................................ Meat ( 3 /8 3 - 1 0 0 ) .............................................................................................. Fish ( 3 /8 3 - 1 0 0 ) ............................................................................................... Grain and grain preparations (3/80 = 100) ................................................... Vegetables and fruit (3/83 = 100) ................................................................... Feedstuffs for animals (3/83 = 10 0 )................................................................ Misc. food products (3/83 = 1 0 0 ).................................................................... 03 04 05 08 09 Beverages (9/83 = 1 0 0 ).................................................................................... Tobacco and tobacco products ( 6 /8 3 = 1 0 0 ) ............................................... Crude materials (6/83 = 101.5 99.3 98.1 106.2 108.9 99.8 102.7 116.2 106.9 104.9 109.6 108.7 98.7 107.4 126.9 98.8 103.5 105.6 98.0 96.5 104.4 98.7 92.9 114.7 82.4 108.4 Organic chemicals (12/83 —1 0 0 ).................................................................... Fertilizers, manufactured ( 3 /8 3 - 1 0 0 ) ............................................................ Intermediate manufactured products ( 9 /8 1 - 1 0 0 ) .................................... Apparel ( 9 /8 3 - 1 0 0 ) ......................................................................................... Professional, scientific, and controlling instruments and apparatus......... Photographic apparatus and supplies, optical goods, watches and clocks ( 1 2 /7 7 - 1 0 0 ) ........................................................................................ 8 82.6 126.9 75.7 108.1 87.1 118.9 83.4 107.7 82.1 115.3 88.5 106.0 89.5 114.7 106.2 79.1 125.8 85.5 104.7 99.7 77.2 122.0 111.2 59.0 131.4 90.2 106.6 110.6 109.2 99.9 104.0 99.5 100.1 105.3 99.6 101.8 98.6 100.9 98.4 95.6 101.9 95.1 96.5 103.0 95.9 102.2 99.5 97.5 93.3 129.0 64.2 107.1 124.5 93.8 103.6 169.4 80.1 92.5 139.9 63.9 106.0 128.1 92.7 97.7 165.5 78.7 95.8 138.9 66.9 106.0 128.7 98.8 168.0 83.4 95.6 148.9 65.8 106.1 128.7 109.7 98.6 166.1 80.5 92.3 138.0 64.5 105.3 129.7 120.7 74.7 164.3 84.6 96.3 95.8 91.9 86.7 85.7 129.8 133.2 164.5 176.4 145.7 159.0 147.9 156.7 142.0 152.9 144.5 164.8 114.5 128.8 101.4 108.7 90.8 95.4 84.4 95.3 76.5 80.8 101.4 99.7 97.0 93.8 92.5 96.8 96.5 87.9 97.1 97.1 89.8 96.6 95.4 90.0 88.6 95.4 89.3 84.0 88.0 96.9 97.7 94.7 94.8 96.5 93.5 108.3 98.3 97.4 97.4 101.0 101.3 81.2 147.5 154.7 96.1 92.9 104.5 102.0 83.5 146.7 150.2 95.9 94.2 103.1 80.8 148.9 160.0 96.8 90.4 105.1 100.4 79.0 148.5 159.5 96.5 82.5 105.0 99.4 82.5 150.2 155.0 95.5 79.7 105.4 99.2 79.2 149.0 151.6 95.3 79.6 105.2 99.2 75.9 148.3 149.6 95.9 79.8 105.4 99.1 78.5 148.7 148.2 98.2 78.2 104.4 100.3 77.8 151.0 152.2 98.4 80.2 105.3 82.5 150.0 158.7 99.4 79.1 105.5 100.2 138.5 158.4 152.3 150.8 148.6 101.4 133.0 139.4 156.9 152.8 151.2 149.0 101.5 132.3 131.2 187.7 141.5 167.5 153.4 151.9 150.2 101.4 134.3 114.6 131.8 191.7 142.3 165.3 155.0 153.4 152.4 100.9 133.3 114.9 133.1 195.5 142.9 167.4 155.7 155.1 152.0 130.2 183.1 140.1 160.6 153.7 151.7 149.3 99.8 134.4 113.8 131.0 189.6 133.3 116.1 133.9 196.6 143.1 167.1 156.0 156.3 152.4 99.9 134.1 115.3 133.8 199.3 143.3 167.5 156.2 158.4 152.2 99.4 134.5 113.8 135.0 200.7 144.0 169.1 155.5 159.0 152.3 99.9 136.5 115.1 135.5 203.3 144.1 169.2 154.7 158.9 153.3 99.2 137.0 114.2 136.4 205.6 144.4 169.5 155.0 160.4 154.4 98.8 137.8 114.2 136.5 206.0 99.3 103.4 171.7 99.5 104.7 175.5 100.4 104.7 178.3 100.3 105.0 178.7 100.3 105.3 178.8 102.6 182.1 103.4 183.8 104.1 183.8 100.2 101.0 77 78 79 90.5 96.6 5 51 56 69 7 71 72 73 74 75 76 93.6 95.1 97.6 4 42 67 90.2 106.1 112.2 111.5 102.6 101.8 102.2 Sept. 99.2 99.1 68 96.7 100.1 3 “ 120.2 68.6 June 97.0 99.7 100.2 125.6 147.7 98.5 - 92.4 119.5 72.8 Mar. 96.7 99.7 104.1 123.8 61 62 64 94.0 104.7 103.6 90.3 Dec. 96.5 99.7 106.0 129.4 6 95.8 103.9 101.0 Sept. 109.4 163.0 93.2 Animal and vegetables oils, fats, and waxes................................. Chemicals (3/83 —1 0 0 )...................................................................................... 97.5 71.0 106.4 128.7 100.5 102.4 165.6 89.2 Mineral fuels............................................................................. Fixed vegetable oils and fats ( 6 /8 3 - 1 0 0 ) ................................................... June 97.5 104.0 125.4 114.2 106.7 163.2 92.4 103.3 131.1 112.5 120.5 146.6 Other manufactured articles ....................................................... 110.6 101.2 125.6 83.5 109.5 Mar. 1986 96.8 126.2 71.2 106.3 125.7 96.1 105.8 167.9 82.0 23 24 25 26 27 28 Power generating machinery and equipment (1 2 /7 8 -1 0 0 ) ...................... Machinery specialized for particular industries (9 /7 8 -1 0 0 ) ...................... Metalworking machinery (6 /7 8 —100) ............................................................ General industrial machines and parts n.e.s. 9 / 7 8 - 1 0 0 ) .......................... Office machines and automatic data processing equipment .................... Telecommunications, sound recording and reproducing equ ipm ent........ Electrical machinery and equipm ent............................................................... Road vehicles and parts ( 3 /8 0 - 1 0 0 ) ............................................................ Other transport equipment, excl. military and commercial aviation ........ Dec. June 10 0 )............................................................................ Raw hides and skins (6/80 = 100) .................................................................. Oilseeds and oleaginous fruit (9/77 = 1 0 0 )................................................... Crude rubber (including synthetic and reclaimed) ( 9 /8 3 - 1 0 0 ) ................ W o o d .................................................................................................................... Pulp and waste paper (6/8 3 = 1 0 0 ) ................................................................ Textile fib e rs ........................................................................................................ Crude fertilizers and m inerals.......................................................................... Metalliferous ores and metal scrap ................................................................ Machinery and transport equipment, excluding military and commercial aircraft (12/78 = 100) ........................................................ Sept. Mar. 100.2 1 101.6 101.9 102.8 101.3 11 102.3 102.9 103.3 103.7 12 101.6 101.8 102.7 101.1 2 112.5 118.3 105.2 101.4 21 145.6 154.7 153.7 133.6 22 93.9 104.3 79.9 74.8 Beverages and tobacco (6/83 — 10 0 )............................................................. Leather and furskins ( 9 /7 9 - 1 0 0 ) ................................................................... Rubber manufactures ....................................................................................... Paper and paperboard products ( 6 /7 8 - 1 0 0 ) .............................................. Iron and steel (3/82 —100) .............................................................................. Nonferrous metals (9/81 — 100) ...................................................................... Metal manufactures, n.e.s. (3/82 —100) ....................................................... 1985 1984 122.1 110.2 112.6 100.6 100.4 120.8 121.0 100.0 101.6 93.1 77.4 101.2 102.2 84.2 150.4 165.3 79.4 105.6 101.9 171.8 102.1 172.0 100.7 103.9 175.8 132.0 131.3 132.7 130.3 128.0 129.1 127.5 128.5 131.6 132.9 132.7 Miscellaneous manufactured articles, n.e.s.................................................... 84 98.5 97.9 95.2 94.1 92.4 93.1 93.1 92.4 95.6 95.6 97.6 Gold, non-monetary ( 6 /8 3 - 1 0 0 ) .................................................................... 971 95.8 93.5 81.7 79.5 69.1 75.4 77.4 77.5 81.8 82.2 97.5 - Data not available. 86 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 37. U.S. import price indexes by Standard International Trade Classification (June 1977=100, unless otherwise indicated) Category ALL COMMODITIES (9/82 = 1974 SITC 10 0 )....................................................................................... M e a t....................................................................................... Dairy products and eggs (6/81 = 10 0) ......................................................... F is h .......................................................................................... Bakery goods, pasta products, grain and grain preparations (9/77 = 100) ....................................................................................................... Fruits and ve g e ta b le s ....................................................................................... Sugar, sugar preparations, and honey (3/82 = 1 0 0 ).................................... Coffee, tea, c o c o a ............................................................................................. Beverages and tobacco ............................................................ Beverages ........................................................................................................... Crude materials........................................................................ Dec. 1985 Mar. June 1986 Sept. Dec. Mar. June Sept. Dec. 95.7 93.5 93.0 92.9 94.2 88.5 83.2 83.9 86.0 98.5 130.4 98.3 132.9 96.8 118.2 97.9 129.4 94.9 102.8 03 98.1 132.3 98.4 133.9 99.1 129.7 131.2 100.5 132.7 113.4 122.7 106.7 139.3 104.7 118.5 107.1 144.8 109.1 126.9 109.4 149.6 105.3 134.4 111.5 157.1 04 05 06 07 132.8 117.2 118.5 58.4 131.8 127.1 118.4 57.0 132.3 129.4 120.2 123.1 54.4 146.9 119.4 124.6 85.9 149.2 119.4 56.0 141.9 131.3 111.9 64.6 69.2 154.0 127.1 123.9 71.8 155.3 125.5 124.3 61.0 1 11 2 156.5 152.8 156.2 154.2 157.1 154.3 158.0 156.0 162.1 159.1 163.2 161.8 165.5 163.9 165.8 165.5 168.0 168.2 91.5 68.9 91.2 73.2 99.4 75.8 95.3 75.5 106.3 79.9 98.1 76.9 109.4 98.5 78.5 107.2 92.8 95.6 104.4 100.4 98.2 104.8 95.4 104.7 1 0 0 )..................................................................... Food (9/77 = 1984 0 01 02 122.6 120.6 136.3 121.6 Crude rubber (Inc. synthetic & reclaimed) ( 3 /8 4 - 1 0 0 ) .............................. Wood (9/81 = 100) ............................................................................................. Pulp and waste paper (12/81 = 1 0 0 ) ................. ............................................ Crude fertilizers and crude minerals (1 2 /8 3 -1 0 0 ) ..................................... Metalliferous ores and metal scrap (3 /8 4 —1 0 0 )......................................... Crude vegetable and animal materials, n.e.s................................................. 23 24 25 27 28 29 98.9 83.8 104.0 93.2 98.6 95.6 106.4 94.0 77.6 100.7 84.0 100.3 90.4 104.3 93.6 76.4 106.9 80.4 101.7 87.6 104.9 76.8 102.7 89.5 102.5 90.1 102.5 94.2 78.8 104.3 74.9 101.5 94.5 103.6 Fuels and related products ( 6 /8 2 = 1 0 0 ) ....................................................... 3 33 85.2 85.2 82.9 83.8 80.9 81.6 79.8 80.3 79.1 80.1 55.3 54.7 37.5 36.1 33.6 32.1 38.4 37.9 4 42 114.9 115.3 89.9 89.5 76.7 75.9 57.6 56.2 50.6 48.9 41.4 39.3 39.3 37.4 35.5 33.5 51.6 50.0 5 54 56 59 97.1 94.6 92.9 97.5 95.7 91.6 94.2 96.1 94.9 95.1 82.0 95.6 94.5 95.3 80.8 96.9 94.2 96.7 78.5 97.8 94.6 102.9 79.2 99.9 93.3 104.9 79.7 100.3 110.0 110.1 77.4 79.7 101.0 102.8 93.4 93.2 6 133.1 135.3 139.5 121.3 157.6 130.4 154.2 132.4 133.3 138.6 157.2 127.5 151.7 81.9 117.4 82.3 117.8 133.6 137.0 137.3 123.4 157.8 126.5 157.6 119.1 83.7 119.5 133.4 141.3 138.1 124.0 156.5 128.1 162.2 118.3 80.4 69 136.8 140.4 140.5 126.1 157.5 132.9 159.4 123.7 87.3 119.3 134.0 141.6 136.5 130.8 157.1 131.2 164.2 117.3 79.4 124.4 135.6 143.0 137.7 134.3 157.1 132.9 169.6 118.1 78.9 127.8 138.8 147.4 138.1 137.4 157.5 135.1 178.2 119.0 83.5 129.1 139.4 143.3 138.1 142.7 164.8 135.3 180.2 118.5 81.6 129.1 7 72 73 74 102.9 98.0 89.9 91.3 111.5 105.0 103.8 115.3 115.4 107.7 109.0 120.1 120.1 121.1 110.7 115.7 112.8 113.9 75 76 77 78 Petroleum and petroleum products (6 /8 2 —100) .......................................... Fats and oils (9 /8 3 = 1 0 0 ) ................................................................................. Vegetable oils (9/83 = 1 0 0 ).............................................................................. Chemicals (9 /8 2 = 1 0 0 ) ...................................................................................... Medicinal and pharmaceutical products (3 /8 4 -1 0 0 ) ................................. Manufactured fertilizers ( 3 /8 4 = 1 0 0 ) .............................................................. Chemical materials and products, n.e.s. ( 9 /8 4 = 1 0 0 ) ................................. Intermediate manufactured products (12/77 = 100) ................................. Leather and fu rs k in s ......................................................................................... Rubber manufactures, n.e.s.............................................................................. Cork and wood manufactures ..................... Paper and paperboard products ..................................................................... T extiles............................................................................................... Nonmetallic mineral manufactures, n.e.s........................................................ Iron and steel ( 9 /7 8 = 1 0 0 ) ..................................................................... Nonferrous metals (12/81 = 1 0 0 ) .................................................................... Metal manufactures, n.e.s........................................................................ Machinery and transport equipment (6/81 = 100).......................... Machinery specialized for particular industries ( 9 / 7 8 - 1 0 0 ) ..................... Metalworking machinery (3 /8 0 = 1 0 0 ) ................................................ General industrial machinery and parts, n.e.s. (6 /8 1 = 1 0 0 ) ...................... Office machines and automatic data processing equipment (3 /8 0 = 1 0 0 ) ................................................................ Telecommunications, sound recording and reproducing apparatus (3/80 = 1 0 0 )...................................................... Electrical machinery and equipment (12/81 =10 0) ............................. Road vehicles and parts (6/81 = 1 0 0 ).............................................. Mise, manufactured articles ( 3 /8 0 = 1 0 0 ) ............................................. Plumbing, heating, and lighting fixtures (6 /8 0 = 1 0 0 ) .................................. Furniture and parts (6 /8 0 = 1 0 0 ) ............................................. Clothing (9 /7 7 = 1 0 0 ) ........................................................... F oo tw ear............................................................... Professional, scientific, and controlling instruments and apparatus ( 1 2 /7 9 = 1 0 0 )..................................................................... Photographic apparatus and supplies, optical goods, watches, and clocks ( 3 /8 0 - 1 0 0 ) ............................................................... Mise, manufactured articles, n.e.s. (6 /8 2 = 1 0 0 ) ............................ Gold, non-monetary (6/82 = 100)............................................... https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 61 62 63 64 65 66 68 67 121.2 121.0 120.1 101.6 102.6 101.6 102.1 121.6 100.0 86.0 100.2 118.1 96.2 86.3 89.2 97.0 90.5 91.1 103.5 101.4 94.2 94.3 107.2 104.9 98.1 98.0 92.2 89.6 89.4 90.3 93.7 96.9 101.3 102.5 102.4 91.3 86.4 111.3 90.0 82.1 111.5 88.8 83.9 112.1 88.3 81.4 112.7 88.6 83.1 117.8 89.4 84.5 123.4 91.6 87.5 127.1 93.7 89.5 129.8 92.6 92.0 133.2 8 100.0 111.6 103.3 100.8 112.1 81 82 84 85 142.5 138.5 142.5 97.0 113.9 137.4 136.7 137.4 98.0 114.1 136.7 133.9 136.7 99.6 117.8 142.1 134.5 142.1 115.0 142.7 134.5 142.7 147.0 133.4 147.0 104.8 123.5 142.2 135.3 142.2 109.5 125.5 145.8 137.8 145.8 109.6 125.5 146.9 139.1 146.9 87 92.9 89.2 92.3 98.8 102.4 106.4 112.5 118.3 119.1 88 91.3 96.3 88.9 91.2 89.5 95.2 91.1 96.4 94.5 97.9 99.3 89 102.1 103.2 103.4 106.9 112.3 111.0 971 103.6 90.1 98.3 101.1 101.0 106.7 107.3 126.9 123.3 120.1 107.7 MONTHLY LABOR REVIEW 38. March 1987 • Current Labor Statistics: Price Data U.S. export price indexes by end-use category (September 1983 = 100 unless otherwise indicated) Category Percentage of 1980 trade value 16.294 30.696 21.327 9.368 30.186 7.483 7.467 3.965 3.501 39. 1986 1985 1984 83.0 99.1 101.4 93.3 105.6 105.7 100.8 99.3 102.3 Sept. June Mar. Dec. 81.5 97.6 99.6 92.6 106.2 106.7 100.9 99.1 102.7 80.9 97.2 99.5 91.6 106.6 108.0 101.1 99.2 103.0 76.? 96.5 98.7 91.1 106.6 108.1 101.9 100.4 103.3 77.5 95.9 97.9 91.0 106.6 109.2 101.4 99.5 103.3 66.0 93.3 93.7 92.5 107.7 101.8 110.8 104.5 102.1 68.4 94.8 95.4 93.2 108.3 107.2 106.9 105.7 102.7 108.5 75.5 96.0 97.5 92.5 107.4 109.5 103.7 74.7 94.9 96.1 91.9 107.5 110.4 104.5 105.5 101.8 Dec. Sept. June Mar. Dec. 111.8 U.S. import price indexes by end-use category (December 1982=100) Category Percentage Of 1980 trade value 7.477 31.108 19.205 9.391 9.814 13.164 11.750 14.250 5.507 8.743 1986 1985 1984 101.8 85.7 101.1 100.7 101.6 97.8 105.2 101.1 98.5 104.6 102.1 84.4 96.3 95.0 97.7 94.8 105.4 99.5 97.0 103.0 100.4 82.1 95.8 93.9 97.8 96.3 105.9 99.4 97.0 102.5 99.0 80.9 95.4 93.5 97.4 97.6 106.4 101.0 98.9 103.9 106.0 80.5 93.9 91.8 96.2 115.8 55.4 94.5 91.1 98.1 111.4 102.4 100.7 104.7 115.6 104.5 103.4 106.0 100.0 102.8 Dec. Sept. June Mar. Dec. Sept. June Mar. Dec. 108.2 36.8 94.0 89.7 98.7 106.7 119.0 106.5 106.5 106.6 112.3 32.6 95.3 89.5 101.4 109.4 121.0 110.1 111.2 108.6 40. U.S. export price Indexes by Standard industrial Classification Dec. Manufacturing: 103.3 Mar. 99.5 Lumber and wood products, except furniture 97.9 104.9 103.6 100.7 100.4 90.4 139.9 111.1 158.8 Scientific instruments; optical goods; clocks 153.0 1 SIC - based classification. 88 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1986 1985 1984 Industry group 99.9 105.2 97.1 100.3 101.3 87.9 140.4 111.3 160.4 154.9 June 99.5 99.5 106.5 94.7 99.6 102.7 87.5 140.5 112.4 161.8 156.6 Sept. 96.7 98.3 107.1 93.2 99.7 102.0 88.1 140.6 111.9 162.6 156.2 Dec. 98.1 101.2 Mar. 97.0 June 95.2 97.6 101.2 102.1 110.1 167.4 105.7 110.4 108.7 95.9 82.2 89.9 140.7 113.7 169.4 161.5 162.3 101.5 109.2 95.7 98.9 93.5 89.8 140.6 164.1 165.1 109.7 101.5 98.3 83.1 89.8 140.3 112.3 167.1 156.7 159.7 161.2 112.6 Dec. 95.0 108.4 92.1 99.2 99.1 87.9 140.5 111.2 Sept. 106.1 96.2 83.1 90.7 140.5 112.6 109.2 38.3 94.9 89.7 100.3 110.8 110.6 123.5 111.7 109.2 41. U.S. import price indexes by Standard Industriai Classification 1 1984 Industry group 1985 Dec. Manufacturing: Food and kindred products (6 /7 7 = 1 0 0 ) .................................... Textile mill products ( 9 /8 2 = 1 0 0 )................................................. Apparel and related products (6 /7 7 = 1 0 0 ) ................................. Lumber and wood products, except furniture (6 /7 7 = 1 0 0 ) ................................................................................... Furniture and fixtures ( 6 /8 0 - 1 0 0 ) ............................................... Paper and allied products ( 6 /7 7 = 1 0 0 ) ....................................... Chemicals and allied products (9 /8 2 = 1 0 0 ) ............................... Rubber and miscellaneous plastic products ( 1 2 / 8 0 - 1 0 0 ) ................................................................................. Leather and leather products ....................................................... Primary metal products (6/81 = 10 0) ........................................... Fabricated metal products ( 1 2 / 8 4 - 1 0 0 ) .................................... Machinery, except electrical (3 /8 0 —1 0 0 )................................... Electrical machinery ( 9 /8 4 - 1 0 0 ) ................................................. Transportation equipment (6 /8 1 = 1 0 0 ) ....................................... Scientific instruments; optical goods; clocks (1 2 /7 9 = 1 0 0 )................................................................................. Miscellaneous manufactured commodities ( 9 /8 2 - 1 0 0 ) .................................................................................. Mar. 122.6 118.8 June 1986 Sept. 115.0 Dec. 114.2 100.4 133.9 134.4 117.5 97.7 138.7 93.3 115.8 98.2 137.4 95.8 96.6 142.3 84.3 97.5 144.0 82.6 Mar. 115.1 June Sept. Dec. 117.7 104.7 133.4 115.6 106.4 135.1 118.0 107.1 137.8 122.4 108.0 139.3 122.1 101.2 124.8 103.5 139.4 127.9 105.4 142.2 103.8 127.9 105.6 150.3 102.4 102.8 101.0 135.6 133.0 116.3 93.9 141.5 95.3 120.6 96.1 139.8 93.9 94.1 98.6 112.9 96.9 139.1 84.1 99.0 91.8 95.1 113.1 96.7 138.9 84.1 99.1 93.4 95.8 114.2 96.6 94.5 114.8 95.8 119.6 100.9 145.8 82.0 104.9 105.5 97.0 123.9 128.0 130.4 114.2 103.6 133.2 93.2 90.7 91.7 94.6 98.8 103.9 109.1 113.8 114.0 96.4 95.1 95.1 96.6 98.7 99.9 101.7 106.9 108.1 104.7 138.2 120.0 95.6 145.5 98.2 98.0 144.2 87.8 100.0 101.8 101.0 137.6 98.6 102.6 100.0 102.1 100.6 101.9 147.7 84.9 110.3 112.5 144.6 82.4 108.5 109.0 100.2 102.6 102.1 148.7 84.0 111.1 1 SIC - based classification. 42. Indexes of productivity, hourly compensation, and unit costs, quarterly data seasonally adjusted (1977=100) Annual average Quarterly Indexes Item 1984 1985 1986 1985 Business: Output per hour of all persons Compensation per h o u r........... Real compensation per hour ... Unit labor c o s ts ......................... Unit nonlabor p aym ents.......... Implicit price d e fla to r................ 106.4 175.3 98.8 164.8 159.7 163.0 105.6 167.1 97.9 158.3 156.7 157.7 105.5 169.0 98.1 160.2 157.0 159.0 105.5 170.6 98.2 161.7 157.7 160.3 105.7 172.3 98.4 163.1 158.3 161.4 106.4 174.5 98.6 164.0 160.0 162.6 107.3 176.4 99.0 164.4 161.4 163.4 106.4 178.0 99.0 167.3 159.6 164.6 107.3 179.1 99.2 167.0 162.2 165.3 107.4 180.4 100.2 168.0 161.9 165.8 107.3 181.7 100.4 169.3 163.4 167.2 104.8 174.6 98.4 166.7 160.6 164.6 104.6 166.9 97.8 159.5 156.4 158.4 104.4 168.7 97.9 161.5 157.2 160.0 104.3 170.4 98.1 163.3 157.9 161.4 104.4 172.1 98.3 164.8 158.9 162.7 104.9 174.0 98.3 165.9 160.8 164.1 105.4 175.4 98.5 166.3 163.0 165.2 104.5 177.0 98.4 169.3 160.3 166.2 105.6 178.3 98.8 168.8 163.9 167.1 105.7 179.3 99.7 169.6 163.7 167.5 105.7 180.4 99.6 170.7 165.9 169.0 106.8 172.3 97.0 165.8 161.2 179.1 133.1 163.0 161.8 105.9 164.8 96.5 160.1 155.7 173.1 138.5 161.0 157.5 105.5 166.6 96.7 162.6 157.9 176.4 130.3 160.3 158.7 105.8 168.3 96.9 163.8 159.1 177.5 130.5 161.0 159.8 106.0 169.9 97.0 164.9 160.3 178.5 129.3 161.3 160.6 106.5 171.6 96.9 165.8 161.1 179.8 130.2 162.5 161.6 107.8 173.1 97.2 165.0 160.5 178.3 141.7 165.5 162.2 107.0 174.5 97.0 167.2 163.0 179.8 131.2 162.8 162.9 106.9 175.4 97.1 168.3 164.0 181.1 131.7 163.8 164.0 106.8 176.1 97.8 168.6 164.8 179.9 132.3 163.2 164.3 106.9 176.8 97.7 169.8 165.4 182.6 135.8 166.2 165.7 121.7 176.7 99.5 145.1 115.7 166.8 97.7 144.2 117.8 169.1 98.1 143.5 118.2 171.5 98.7 145.1 119.3 173.8 99.2 145.7 121.7 175.6 99.2 144.3 123.0 178.1 122.9 179.3 99.7 145.8 123.7 180.2 99.8 145.7 124.7 181.4 100.8 145.5 125.8 182.5 Nonfarm business: Output per hour of all persons Compensation per h o u r........... Real compensation per h o u r ... Unit labor c o s ts ......................... Unit nonlabor p aym ents.......... Implicit price d e fla to r................ Nonflnanclal corporations: Output per hour of all employees Compensation per h o u r................ Real compensation per h o u r ....... Total unit c o s ts ............................... Unit labor costs ........................... Unit nonlabor c o s ts ..................... Unit p ro fits ....................................... Unit nonlabor p a ym ents............... Implicit price d e fla to r..................... Manufacturing: Output per hour of all persons Compensation per h o u r........... Real compensation per h o u r ... Unit labor c o s ts ......................... https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 100.0 144.8 100.8 145.1 89 MONTHLY LABOR REVIEW 43. March 1987 • Current Labor Statistics: Productivity Data Annual indexes of multifactor productivity and related measures, selected years (1977 = 100) Item 1960 1970 1973 1974 1976 1978 1979 1980 1981 1982 1983 1984 P r iv a t e b u s in e s s Productivity: Output per hour of all p e rs o n s ............................. Output per unit of capital s e rv ic e s ...................... Multifactor productivity........................................... O u tp u t.......................................................................... Inputs: Hours of all persons............................................... Capital services ...................................................... Combined units of labor and capital in p u t......... Capital per hour of all persons................................ 99.2 94.2 97.4 106.6 100.6 100.3 105.8 99.5 99.8 99.7 107.9 92.4 97.7 108.9 95.2 105.4 105.0 103.8 104.5 98.8 108.4 108.0 108.2 99.7 107.5 113.1 109.4 105.3 108.2 117.8 111.5 108.8 105.2 121.7 110.7 115.7 98.5 97.3 98.1 94.4 100.8 99.2 99.0 99.1 107.9 98.7 93.4 96.9 106.6 99.6 91.1 96.7 108.4 99.1 85.1 94.1 104.8 102.4 87.3 97.0 110.0 104.3 90.9 99.6 118.9 96.6 91.9 95.0 95.1 95.8 97.0 96.2 101.3 105.1 104.0 104.7 98.9 108.8 109.0 108.9 108.0 114.1 108.8 119.0 100.1 105.6 109.4 105.7 123.2 111.4 116.5 107.4 126.1 113.5 117.4 114.0 130.8 119.4 114.7 90.6 97.1 96.2 96.8 93.1 101.5 101.4 99.7 101.0 103.6 89.2 99.8 104.8 105.9 81.8 99.2 98.4 112.0 101.7 106.0 101.4 91.2 98.7 103.2 116.6 94.4 110.7 116.0 95.9 96.7 96.1 100.9 104.4 103.7 104.2 99.4 106.5 108.4 107.0 101.7 101.7 113.1 104.5 101.1 92.9 120.3 99.2 129.4 92.9 80.2 95.9 105.3 99.1 93.0 93.8 98.8 95.6 91.2 98.4 97.2 98.0 94.5 100.8 102.0 101.2 90.8 78.7 86.3 86.7 96.9 88.3 93.8 91.1 97.2 92.4 95.5 95.0 96.1 97.2 96.5 101.2 89.2 96.4 106.0 99.6 92.9 94.3 99.2 96.0 91.1 86.8 96.3 87.6 93.3 91.0 62.2 102.5 71.9 52.5 80.8 98.6 85.2 78.6 93.4 111.4 97.9 96.3 84.4 51.2 73.0 60.7 97.3 79.7 92.2 82.0 103.1 86.4 98.4 83.8 67.3 102.4 78.2 55.3 82.2 54.0 70.7 65.7 88.4 102.0 86.6 103.0 88.3 97.6 109.9 105.4 92.4 106.7 124.4 112.8 112.6 116.7 100.6 118.9 128.7 118.1 114.1 P r iv a t e n o n f a r m b u s in e s s Productivity: Output per hour of all p e rs o n s ............................. Output per unit of capital se rvice s....................... Multifactor productivity........................................... O u tp u t.......................................................................... Inputs: Hours of all persons............................................... Capital services ...................................................... Combined units of labor and capital in p u t......... Capital per hour of all persons................................ 70.7 103.7 80.9 54.4 77.0 52.5 67.3 68.2 102.8 93.7 79.9 89.6 77.7 85.3 101.9 101.2 106.0 110.0 112.2 M a n u f a c t u r in g Productivity: Output per hour of all p e rs o n s ............................. Output per unit of capital se rvice s....................... Multifactor productivity........................................... O u tp u t.......................................................................... Inputs: Hours of all persons............................................... Capital services ...................................................... Combined units of labor and capital in p u ts ....... Capital per hour of all persons................................ 44. 101.2 93.3 91.7 101.2 90.6 98.3 89.5 102.1 108.1 111.2 117.5 105.0 116.2 86.9 105.1 104.7 93.5 120.6 99.7 129.0 99.5 122.9 104.8 123.6 Annual indexes of productivity, hourly compensation, unit costs, and prices, selected years (1977 = 100) Item 1981 1982 1983 1984 1985 100.8 108.5 100.8 99.6 119.1 99.4 119.5 112.5 117.0 99.3 131.5 96.7 132.5 118.7 127.6 100.7 143.7 95.7 142.7 134.6 139.8 100.3 154.9 97.3 154.5 136.6 148.1 103.0 161.5 98.2 156.8 146.3 153.0 105.3 168.1 98.1 159.7 156.3 158.5 / 106.4 175.3 98.8 164.8 159.7 163.0 99.3 118.9 99.2 119.7 110.5 116.5 98.8 131.3 96.6 132.9 118.5 127.8 99.8 143.6 95.7 144.0 133.5 140.3 99.2 154.8 97.2 156.0 136.5 149.2 102.4 161.5 98.2 157.7 148.1 154.3 104.3 167.9 98.0 161.0 156.1 159.3 104.8 174.6 98.4 166.7 160.6 164.6 108.4 100.7 107.8 104.4 106.6 99.8 118.7 99.1 119.0 108.4 115.4 99.1 131.1 96.4 132.3 118.6 127.6 99.6 143.3 95.5 143.8 137.8 141.7 100.4 154.3 96.9 153.8 142.1 149.8 103.5 159.9 97.3 154.5 152.1 153.7 105.6 165.9 96.8 157.0 160.1 158.1 106.8 172.3 97.0 161.2 163.0 161.8 101.5 108.2 100.5 106.6 101.9 105.2 101.4 118.6 99.1 117.0 98.9 111.7 101.4 132.4 97.4 130.6 97.8 103.6 145.2 96.7 140.1 105.9 157.5 98.9 148.7 114.0 138.6 112.0 116.6 168.2 98.1 144.2 136.9 142.1 121.7 176.7 99.5 145.1 134.4 142.0 93.9 77.6 95.4 82.7 76.4 80.5 98.3 92.8 98.7 94.3 93.3 94.0 89.3 58.2 90.8 65.2 60.0 63.4 96.4 71.2 97.1 73.9 69.3 72.3 94.3 78.0 95.9 82.7 74.0 79.7 98.5 92.8 98.8 94.3 93.0 93.8 108.6 100.9 107.7 105.6 107.0 73.4 36.9 75.5 50.2 51.5 50.7 91.1 59.2 92.4 65.0 60.1 63.3 97.5 71.6 97.6 73.4 68.9 71.9 94.6 78.2 96.1 82.6 73.1 79.4 98.4 92.9 98.9 94.3 93.8 94.2 62.2 36.5 74.8 58.7 60.0 59.1 80.8 57.4 89.5 71.0 64.1 69.0 93.4 90.6 76.2 93.6 84.1 67.7 79.3 97.1 92.1 98.1 94.9 93.5 94.5 88.4 57.8 90.2 65.4 59.4 63.2 71.0 35.3 72.3 49.7 46.3 48.5 N o n f in a n c i a l c o r p o r a t io n s : Output per hour of all em ployees........................... Compensation per h o u r............................................ Real compensation per h o u r ................................... Unit labor costs ......................................................... Unit nonlabor paym e n ts........................................... Implicit price deflator ................................................ 1980 95.9 70.9 96.7 73.9 72.5 73.4 67.6 33.6 68.9 49.7 46.4 48.5 1973 N o n f a r m b u s in e s s : Output per hour of all p e rs o n s ................................ Compensation per h o u r............................................ Real compensation per h o u r ................................... Unit labor costs ......................................................... Unit nonlabor payments ........................................... Implicit price deflator ................................................ 1979 1976 1970 B u s in e s s : Output per hour of all p e rs o n s ................................ Compensation per h o u r............................................ Real compensation per h o u r ................................... Unit labor costs ......................................................... Unit nonlabor payments ........................................... Implicit price deflator ................................................ 1978 1974 1960 107.6 106.7 107.3 100.8 100.6 M a n u f a c t u r in g : Output per hour of all p e rs o n s ................................ Compensation per h o u r............................................ Real compensation per hour ................................... Unit labor costs ......................................................... Unit nonlabor payments ........................................... Implicit price deflator ................................................ 90 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 68.8 93.8 73.7 70.7 72.8 121.0 111.8 131.8 162.4 98.8 145.0 128.5 140.2 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 45. Unemployment rates In nine countries, quarterly data seasonally adjusted 1985 A n n u a l a v e ra g e 1986 C o u n try 1985 1986 II III IV I II III IV Total labor force basis U n ite d S t a t e s ................................................ C a n a d a ............................................................ A u s tra lia .......................................................... J a p a n ................................................................ F ra n c e .............................................................. G e r m a n y .......................................................... G re a t B rita in ................................................. Ita ly \ 2 ............................................................. S w e d e n ........................................................... 7.1 10.4 8.2 2.6 10.1 7.7 13.0 5.9 2.8 6.9 - _ - - 7.1 10.5 8.4 2.5 7.1 10.2 8.1 2.6 7.0 10.1 7.8 2.9 7.0 9.7 7.9 2.6 10.1 7.8 13.0 5.7 2.9 10.2 7.7 13.2 5.9 2.7 9.9 7.7 12.8 6.2 2.7 10.0 7..6 13.0 6.2 2.8 10.3 7.5 13.1 6.3 2.6 10.4 7.3 7.2 10.6 8.5 2.6 7.2 10.2 8.2 2.7 7.1 10.1 7.9 2.9 7.1 9.7 8.0 2.7 7.1 9.6 6.9 9.7 2.8 10.4 7.9 13.2 5.8 2.9 10.4 7.9 13.4 6.0 2.8 10.1 7.8 13.0 6.3 2.7 10.2 7.8 13.1 6.3 2.8 10.5 7.6 13.3 6.5 2.6 7.0 9.5 6.8 9.6 _ 2.8 6.8 _ - - 6.0 2.6 _ _ - Civilian labor force basis U n ite d S t a t e s ................................................ C a n a d a ............................................................ A u s tra lia .......................................................... J a p a n ................................................................ F ra n c e .............................................................. G e r m a n y .......................................................... G re a t B rita in ................................................. I t a l y .................................................................... S w e d e n ........................................................... 1 2 7.2 10.5 8.3 2.6 10.4 7.9 13.1 6.0 2.8 7.0 - “ Quarterly rates are for the first month of the quarter. Major changes in the Italian labor force survey, intro duced in 1977, resulted in a large increase in persons enu merated as unemployed. However, many persons reported that they had not actively sought work in the past 30 days, and they have been provisionally excluded for comparability with U.S. concepts. Inclusion of such persons would more - 6.9 - 10.7 7.5 _ 6.1 2.6 - than double the Italian unemployment rate shown. - Data not available. NOTE: Quarterly figures for France, Germany, and Great Britain are calculated by applying annual adjustment factors to current published data and therefore should be viewed as less precise indicators of unemployment under U.S. con cepts than the annual figures. MONTHLY LABOR REVIEW 46. March 1987 • Current Labor Statistics: International Comparisons Data Annual data: Employment status of the civilian working-age population, 10 countries (Numbers in thousands) Employment status and country Labor force Japan ........................................................................... G erm any...................................................................... Ita ly ............................................................................... S w eden........................................................................ Japan ........................................................................... G erm any...................................................................... Ita ly ............................................................................... N etherlands................................................................. S w eden........................................................................ Ita ly ............................................................................... S w eden........................................................................ 111,550 12,183 6,997 58,110 23,130 26,740 26,010 21,610 5,720 4,369 113,544 12,399 7,133 58,480 23,290 26,880 26,530 21,680 5,740 4,385 115,461 12,639 7,272 58,820 23,330 27,090 26,960 21,800 5,690 4,418 63.8 64.1 62.2 62.6 57.2 53.2 63.2 48.0 50.0 67.0 63.9 64.8 62.0 62.6 57.1 52.9 62.2 48.0 51.3 64.0 64.1 61.8 62.7 57.1 52.7 61.9 47.4 51.2 66.8 64.0 64.4 61.5 63.1 56.6 52.5 61.9 47.2 52.1 66.7 64.4 64.8 61.5 62.7 56.6 52.6 62.7 47.3 52.0 64.8 65.2 61.8 62.3 56.4 53.2 63.6 47.2 51.2 67.2 100,397 11,006 6,416 55,060 25,560 23,190 20,480 4,990 4,218 99,526 10,644 6,415 55,620 21,230 25,130 22,820 20,430 4,930 4,213 100,834 10,734 6,300 56,550 21,170 24,750 22,680 20,470 4,890 4,218 105,005 4,830 4,174 99,303 10,708 6,284 54,600 21,320 25,750 24,100 20,380 4,960 4,226 6,490 56,870 20,980 24,790 23,100 20,390 4,880 4,249 107,150 11,311 6,670 57,260 20,910 24,960 23,420 20,490 4,890 4,293 59.3 57.5 58.1 61.3 54.4 51.5 59.4 45.9 46.3 64.6 59.9 58.7 57.9 61.4 54.0 51.7 59.8 45.9 46.4 65.3 59.2 59.3 58.4 61.3 53.5 51.7 58.9 46.1 46.9 65.6 59.0 59.9 58.4 61.2 52.8 50.8 55.8 45.9 46.5 65.1 57.8 57.0 57.3 61.2 52.3 49.6 54.6 45.2 45.4 64.7 57.9 56.7 55.4 61.4 51.8 48.6 54.0 44.7 44.5 64.4 59.5 57.4 56.0 61.0 51.0 48.5 54.6 44.5 44.2 64.7 60.1 58.4 56.6 60.6 50.5 49.0 55.2 44.4 44.0 65.3 6,202 6,137 836 408 1,170 1,370 780 1,350 810 270 7,637 865 409 1,140 1,470 770 1,770 830 330 8,273 898 394 1,260 1,730 1,090 2,680 920 510 108 10,678 1,314 495 1,360 1,920 1,580 3,060 10,717 1,448 697 1,560 1,960 1,990 3,330 1,140 830 151 8,539 1,399 642 1,610 2,310 2,090 3,430 1,280 860 136 8,312 1,328 602 1,560 2,420 2,130 3,540 1,310 800 125 5.8 7.4 6.3 7.1 7.5 7.6 7.5 5.8 11.0 9.6 11.9 7.2 2.4 8.3 5.9 10.0 7.5 11.3 9.0 7.2 10.5 8.3 11.8 2.7 8.5 7.4 12.8 10.4 7.9 13.1 4.8 11.3 3.1 5.3 14.5 3.5 9.9 7.8 12.9 5.9 15.0 3.1 104,962 11,231 6,519 55,210 22,670 26,250 25,710 20,910 5,100 4,262 106,940 11,573 6,693 55,740 22,790 26,520 25,870 62.3 61.6 62.7 62.5 57.6 53.4 63.2 48.0 49.0 65.9 63.2 62.7 62.0 62.8 57.5 53.3 63.3 47.7 48.8 63.7 63.4 61.7 62.7 57.5 53.3 63.2 47.8 49.0 92,017 9,651 98,824 10,395 52,720 21,180 24,970 23,840 19,800 4,700 4,093 96,048 9,987 6,038 53,370 21,260 25,130 24,040 19,870 4,750 4,109 57.9 56.6 59.2 61.2 54.7 51.6 59.3 46.3 46.5 64.8 6,000 G erm any............................................... •'..................... 110,204 11,958 6,910 56,980 23,150 26,710 25,880 21,450 5,560 4,350 102,251 10,895 6,443 54,610 22,470 26,000 25,620 20,630 5,010 4,203 Employed Japan ........................................................................... 108,670 11,904 6,810 56,320 22,930 26,650 25,870 21,410 5,500 4,326 99,009 10,500 6,358 53,820 22,300 25,870 25,430 20,530 4,950 4,168 Participation rate 66.1 66.6 6,111 54,040 21,300 25,470 24,360 20,100 Employment-population ratio United S ta te s .............................................................. Japan ........................................................................... Great B rita in ................................................................ Ita ly ............................................................................... N etherlands................................................................. Unemployed United S ta te s .............................................................. Great B rita in ................................................................ N etherlands................................................................. S w eden........................................................................ 6,991 849 358 United S ta te s .............................................................. Canada ....................................................................... A u stralia....................................................................... Japan .......................................................................... F ra n ce ......................................................................... G erm any..................................................................... N etherlands................................................................ S w eden....................................................................... 92 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 908 405 1,240 1,100 1,120 1,210 900 1,590 740 250 75 870 1,580 760 260 94 7.1 6.1 Unemployment rate 8.1 5.6 2.0 5.0 3.5 6.3 3.6 5.0 1.8 1985 1984 1983 1982 1981 1980 1979 1978 1977 8.3 6.3 2.3 5.4 3.4 6.2 3.7 5.2 2.2 88 2.1 6.0 3.0 5.C 3.9 5.3 2.1 21,210 5,290 4,312 86 6.1 2.0 6.4 2.9 .£ 3.9 6 6.2 2.0 66.8 21,200 2.2 7.5 4.1 .^ 4.3 9.3 2.5 10 1,020 630 137 9.7 66.8 11,000 2.8 2.6 6.0 2.8 14.1 47. Annual Indexes of productivity and related measures, 12 countries (1977 = 100) Item and country 1960 1970 62.2 50.3 23 2 32.8 37.2 36.4 40 3 36.5 32.4 54.6 42.3 53.8 80 8 76.8 64 8 60 0 65.5 69.6 71 2 72.7 64.3 81.7 80.7 77.6 52.5 41.5 19.2 41.7 49.2 35.4 50.0 37.4 44.8 55.1 52.6 71.0 100.0 100.0 86.2 100.0 92.1 100.0 95.0 100.0 88.6 90.0 100.0 86.6 96.1 91.0 100.0 78.0 90.5 86.9 100.0 84.4 95.8 92.7 100.0 87.0 99.5 101.0 100.0 92.5 100.3 106.1 100.0 94.7 104.7 96.2 100.0 1973 Output per hour United S ta te s ............................................................................................. Canada ........................................................................................................ Japan ........................................................................................................... B e lgium ........................................................................................................ D e nm a rk...................................................................................................... F rance.......................................................................................................... G erm any...................................................................................................... Ita ly ............................................................................................................... N etherlands................................................................................................ N orw ay......................................................................................................... S w eden........................................................................................................ United K ingdo m ......................................................................................... 93 4 91 3 83 1 78 7 83.2 82.2 84 0 90.9 81.5 94.6 94.8 92.9 1975 1977 1978 1980 1981 1982 1983 1000 101 fi 101 4 1000 101 4 101 9 1000 108 0 122 7 86 1000 106 2 119 3 100.0 101.5 112.3 114.2 114.6 117.3 100.0 105.7 112.0 116.4 123.5 129.3 1000 103 1 100.0 103.0 116.9 121.0 123.4 126.6 86.2 100.0 106.4 113.9 116.9 119.4 126.1 96.8 100.0 101.8 109.3 109.7 112.6 119.2 100.2 100.0 102.8 112.7 113.2 116.5 125.5 94.3 100.0 101.5 101.2 107.9 112.7 121.2 92 9 91 0 87 7 3 94.6 88.5 90 1 91.1 1984 1985 118.3 135.0 118.4 140.2 135.0 139.3 122.3 132.6 126.2 139.1 159.9 _ 125.0 135.2 129.7 Output United S ta te s .............................................................................................. Canada ......................................................................................................... Japan ............................................................................................................ B e lgium ......................................................................................................... D e nm a rk....................................................................................................... F rance........................................................................................................... G erm any....................................................................................................... Ita ly ................................................................................................................ N etherlands................................................................................................. N orw ay.......................................................................................................... S w eden......................................................................................................... United K ingdom .......................................................................................... 78.6 75.1 69.9 78.1 82.0 73.3 96.3 94.6 91.9 95.8 95.9 84.9 92.3 106.0 104.9 106.7 101.6 99.7 103.4 101.8 101.8 102.8 98.2 97.3 100.6 103.2 107.7 124.1 107.2 110.1 106.6 106.6 115.4 106.6 101.3 104.0 91.7 104.8 108.8 129.8 105.9 106.6 105.9 104.9 114.3 106.7 98.4 96.4 137.3 109.1 108.3 106.0 102.4 111.6 105.0 100.1 99.8 100.6 100.1 86.2 86.4 105.6 101.7 148.2 110.7 112.2 107.4 103.5 109.2 105.3 98.8 105.2 88.9 117.9 110.1 112.8 121.0 165.2 115.2 175.8 118.6 108.4 107.4 113.2 122.3 109.0 113.0 115.3 101.3 112.4 92.4 103.7 114.6 95.0 99.5 98.7 108.5 77.5 100.1 110.0 110.8 _ _ Total hours United S ta te s ............................................................................................... Canada ......................................................................................................... Japan ............................................................................................................ B e lgium ......................................................................................................... D e nm a rk....................................................................................................... France........................................................................................................... G erm any....................................................................................................... Ita ly ............................................................................................................. N etherlands.................................................................................................. N orw ay.......................................................................................................... S w e d e n ......................................................................................................... United K ingdo m ............................................................................ 84.4 82.6 82.7 127.0 132.4 97.2 123.8 102.3 138.4 101.0 124.4 131.9 97.3 97.7 107.9 130.1 125.1 105.3 121.7 107.4 131.2 106.4 114.6 122.1 100.0 100.0 100.0 121.8 100.0 115.2 100.0 107.8 100.0 114.4 101.0 100.0 99.6 95.4 100.0 117.6 107.6 100.0 105.1 104.3 100.0 105.7 105.9 100.0 112.7 102.1 100.0 103.1 103.6 110.7 91.4 101.4 98.2 106.7 100.4 101.7 104.4 103.4 98.8 95.7 98.3 97.8 98.7 98.8 96.6 96.5 94.6 99.1 101.7 101.1 105.7 104.6 101.2 102.0 92.9 95.4 101.7 82.1 94.5 85.9 91.0 90.4 93.5 94.6 104.2 78.5 95.7 83.0 87.0 100.2 80.3 86.2 83.5 82.9 83.9 73.3 83.9 79.5 82.8 84.8 73.2 141.0 237.3 137.5 156.0 158.9 206.4 163.2 179.3 140.7 163.7 174.3 226.2 148.4 276.4 144.7 173.5 173.3 222.4 169.1 182.1 144.8 176.6 183.9 246.5 155.3 303.0 152.8 188.3 190.7 237.2 91.7 100.0 106.6 130.6 140.1 148.7 86.0 100.0 105.3 128.1 145.7 165.4 100.0 98.7 98.4 102.0 101.2 100.0 101.5 109.3 113.6 114.4 100.0 108.6 121.0 131.1 142.2 100.0 107.4 131.7 146.3 162.6 100.0 104.5 115.7 121.2 125.2 100.0 111.2 137.0 162.9 192.4 100.0 101.8 108.5 110.4 115.2 100.0 108.1 117.0 130.2 138.6 100.0 108.4 118.6 130.9 136.3 100.0 114.9 163.8 175.1 183.1 144.5 166.7 98.9 116.1 148.6 175.0 124.7 218.3 114.7 145.5 138.1 183.5 142.8 163.2 95.1 121.4 155.5 182.5 124.6 224.5 109.7 154.0 143.8 187.9 144.5 143.7 111.5 81.3 97.5 112.9 113.4 126.8 98.6 106.1 80.4 159.4 142.8 133.9 107.2 75.3 90.1 102.7 89.9 98.1 95.2 98.1 98.7 93.6 92.6 92.3 90.7 83.3 93.4 91.0 94.6 94.5 91.2 91.3 88.9 79.9 132.4 130.6 120.7 130.4 135.9 147.5 125.6 160.2 123.6 128.0 133.6 165.8 145.2 151.5 129.8 144.6 149.6 170.3 134.5 197.1 129.1 142.8 148.1 188.9 88.0 88.6 85.9 76.7 86.2 99.3 _ 103.3 77.8 85.7 82.9 _ 83.0 84.8 73.3 Compensation per hour United S ta te s ............................................................... Canada ............................................................................................. Japan ............................................................................................................ B e lgium ......................................................................................................... D e nm a rk....................................................................................................... France........................................................................................................... G erm any....................................................................................................... Ita ly ................................................................................... Netherlands.................................................................................................. N orw ay.......................................................................................................... S w eden......................................................................................................... United K ingdom .......................................................................................... 36.5 27.1 8.9 13.8 12.6 15.1 18.8 8.3 12.5 15.8 14.7 14.8 57.3 46.5 33.9 34.9 36.3 36.6 48.0 26.1 39.0 37.9 38.5 30.8 68.8 59.2 55.1 53.5 56.1 52.3 67.5 43.7 60.5 54.5 54.2 44.8 85.1 78.2 84.2 78.9 81.0 76.7 84.5 70.2 82.2 77.2 77.3 74.7 100.0 108.2 100.0 106.7 100.0 106.6 100.0 107.8 100.0 110.2 100.0 113.5 100.0 107.8 100.0 114.5 100.0 108.4 100.0 110.0 100.0 111.4 100.0 116.7 157.5 167.1 136.6 152.0 162.9 200.8 176.6 191.4 148.3 _ 195.5 262.7 164.7 334.0 _ 205.2 205.8 257.0 Unit labor costs: National currency basis: United S ta te s .............................................................. Canada ........................................................................... Japan .................................................................... B e lgium ............................................................................... Denmark ................................................................... F rance.......................................................................... G erm any........................................................................ Ita ly .................................................................... N etherlands........................................... N o rw ay................................................... S w e d e n ............................................................. United K ingdo m .......................................................................................... 58.7 53.9 38.4 42.0 33.8 41.6 46.6 38.5 29.0 34.8 27.6 70.9 60.6 52.3 58.1 55.4 52.6 67.4 36.0 60.7 46.4 47.7 39.7 58.7 59.0 28.5 30.2 29.5 41.7 25.9 32.5 25.1 21.7 30.1 44.4 70.9 61.7 39.1 42.0 44.4 46.8 42.9 50.6 41.2 34.5 41.1 54.4 22.8 73.7 64.8 66.4 68.0 67.4 63.6 80.3 48.1 74.3 57.6 57.2 48.2 96.0 91.5 85.6 86.7 93.8 77.1 95.4 79.7 77.1 79.2 145.0 166.3 92.7 _ 165.1 187.4 124.9 240.1 164.2 152.2 198.1 Unit labor costs: U.S. dollar basis: United S ta te s ..................................................... Canada ......................................................................... Japan ........................................................................... B e lgium ...................................................... D e nm a rk............................................................. F ra n ce .................................................................................... G erm any.................................................................. N etherlands....................................................................... N o rw ay................................................................. S w e d e n .................................................................. United K ingdom ................................................................. - 73.7 68.8 65.6 62.8 67.2 70.4 70.4 73.1 65.6 53.4 58.7 67.7 100.0 106.6 100.0 98.1 100.0 126.8 100.0 115.7 100.0 118.4 100.0 117.3 100.0 121.0 100.0 115.6 100.0 115.7 100.0 109.7 100.0 107.2 100.8 100.0 126.3 91.7 89.8 86.7 89.3 89.6 99.5 88.7 104.3 92.8 81.4 83.2 130.6 116.4 116.8 134.1 129.0 153.4 147.9 141.4 134.2 126.2 125.3 218.3 140.1 129.1 123.8 109.9 110.3 132.2 124.9 126.3 108.9 120.6 115.4 203.1 148.7 142.3 108.8 89.5 102.3 121.5 119.7 125.4 105.8 114.2 96.9 183.5 145.0 129.4 104.2 _ 93.5 102.6 101.6 98.6 112.8 111.1 83.9 100.4 77.7 143.9 101.7 79.1 147.3 Data not available. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 93 MONTHLY LABOR REVIEW March 1987 • Current Labor Statistics: Injury and Illness Data 48. Occupational injury and illness incidence rates by industry, United States Incidence rates per 100 full-time workers2 Industry and type of case1 1980 1979 1978 1977 1984 1983 1982 1981 1985 PRIVATE SECTOR3 Total c a s e s .......................................................................................................... Lost workday c a s e s .......................................................................................... Lost w orkdays..................................................................................................... 8.7 4.0 65.2 8.3 3.8 61.7 7.7 3.5 58.7 11.5 5.1 81.1 11.6 11.7 5.7 83.7 11.9 5.8 82.7 12.3 5.9 82.8 11.9 5.4 80.7 86.0 12.0 6.1 90.8 90.7 11.4 5.7 91.3 11.4 11.2 11.6 6.2 150.5 6.5 163.6 146.4 10.5 5.4 137.3 8.4 4.5 125.1 9.7 5.3 160.2 8.4 4.8 145.3 15.7 6.5 117.0 15.1 6.3 113.1 14.6 14.8 6.3 118.2 15.5 6.9 128.1 15.2 15.5 6.5 113.0 15.1 14.4 6.8 111.2 107.1 112.0 113.0 15.4 6.9 121.3 120.4 16.6 6.7 123.1 16.3 6.3 117.6 14.9 106.0 15.1 5.8 113.1 122.4 14.9 6.4 131.7 14.5 6.3 127.3 115.5 6.6 111.0 16.0 6.9 124.3 15.5 6.7 118.9 14.8 6.4 119.0 15.8 7.1 130.1 15.4 7.0 133.3 13.1 5.1 82.3 13.2 5.6 84.9 13.3 5.9 90.2 22.3 10.4 178.0 22.6 11.1 20.7 178.8 175.9 92.0 17.5 6.9 95.9 17.6 7.1 99.6 16.9 6.9 120.4 16.8 7.8 126.3 133.7 16.2 17.0 7.5 123.6 128.8 11.5 6.4 143.2 15.5 5.9 111.5 16.0 6.4 109.4 15.0 5.7 100.2 15.9 6.3 105.3 16.0 5.7 116.7 110.9 15.6 15.8 10.9 6.0 6.8 11.8 5.9 Construction Total c a s e s .......................................................................................................... Lost workday cases .......................................................................................... Lost w orkdays..................................................................................................... General building contractors: Total c a se s.......................................................................................................... Lost workday c a s e s .......................................................................................... Lost w o rkda ys..................................................................................................... Heavy construction contractors: Total c a s e s .......................................................................................................... Lost workday c a s e s .......................................................................................... Lost w o rkda ys..................................................................................................... Special trade contractors: Total ca se s.......................................................................................................... Lost workday c a s e s ........................................................................................... Lost w o rkda ys..................................................................................................... 6.1 16.6 6.2 16.2 6.8 120.4 16.3 Manufacturing Total c a s e s .......................................................................................................... Lost workday cases .......................................................................................... Lost w o rkda ys..................................................................................................... 7.9 3.6 64.9 9.5 4.3 67.7 Mining Total c a s e s .......................................................................................................... Lost workday c a s e s .......................................................................................... Lost w o rkdays..................................................................................................... 8.0 9.4 4.1 63.5 Agriculture, forestry, and fishing3 Total c a se s.......................................................................................................... Lost workday c a s e s .......................................................................................... Lost w orkdays..................................................................................................... 7.6 3.4 58.5 9.3 3.8 61.6 6.1 6.0 6.0 115.7 14.1 5.9 15.2 14.7 119.3 118.6 6.6 6.2 6.1 6.2 15.4 6.2 3.7 63.4 6.8 128.9 15.2 6.8 11.5 5.1 82.0 10.2 10.0 10.6 5.4 86.7 4.4 75.0 4.3 73.5 4.7 77.9 10.4 4.6 80.2 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 16.0 15.1 97.6 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 15.0 7.1 128.1 6.1 112.2 6.0 112.0 13.6 122.2 6.6 120.8 13.9 6.7 127.8 15.2 7.1 128.3 14.4 6.7 121.3 101.6 12.4 5.4 12.4 5.4 103.4 115.3 18.5 15.3 6.4 102.5 12.2 Durable goods Lumber and wood products: Total c a s e s .......................................................................................................... Lost workday cases .......................................................................................... Lost w o rkda ys..................................................................................................... Furniture and fixtures: Total c a se s.......................................................................................................... Lost workday c a s e s ........................................................................................... Lost w o rkda ys..................................................................................................... Stone, clay, and glass products: Total ca se s.......................................................................................................... Lost workday cases .......................................................................................... Lost w o rkdays..................................................................................................... Primary metal industries: Total c a s e s .......................................................................................................... Lost workday c a s e s .......................................................................................... Lost w o rkda ys..................................................................................................... Fabricated metal products: Total c a s e s .......................................................................................................... Lost workday c a s e s .......................................................................................... Lost w o rkdays..................................................................................................... Machinery, except electrical: Total c a s e s .......................................................................................................... Lost workday c a s e s ........................................................................................... Lost w o rkda ys..................................................................................................... Electric and electronic equipment: Total c a s e s .......................................................................................................... Lost workday c a s e s .......................................................................................... Lost w orkdays..................................................................................................... Transportation equipment: Total c a s e s .......................................................................................................... Lost workday c a s e s .......................................................................................... Lost w o rkdays..................................................................................................... Instruments and related products: Total c a s e s ......................................................................................................... Lost w o rkda ys.................................................................................................... Miscellaneous manufacturing industries: Lost workday c a s e s .......................................................................................... Lost w o rkdays.................................................................................................... See footnotes at end of table. 94 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 17.2 6.0 6.8 119.4 19.1 7.2 109.0 14.0 4.7 69.9 8.6 3.0 46.7 11.8 5.0 79.3 7.0 2.4 37.4 11.5 4.0 58.7 10.8 16.8 8.0 17.3 8.1 134.7 6.6 6.2 14.1 6.9 13.0 13.1 13.3 6.1 12.6 5.7 113.8 16.3 6.9 112.4 19.9 8.7 124.2 118.4 17.5 7.5 109.9 96.5 16.1 6.7 104.9 14.4 5.4 75.1 14.7 5.9 83.6 13.7 5.5 81.3 12.9 5.1 74.9 10.7 4.2 66.0 9.8 3.6 58.1 10.7 4.1 65.8 7.4 3.1 48.4 6.5 2.7 42.2 6.3 41.4 45.0 9.8 4.6 78.1 9.2 4.0 72.2 8.4 3.6 64.5 68.8 6.5 2.7 39.2 5.6 2.2 2.1 37.0 35.6 37.5 37.9 10.7 4.4 68.3 9.S 4.1 69.9 9.9 4.0 66.3 10.5 4.3 70.2 9.7 4.2 73.2 19.3 8.0 8.0 8.7 3.3 50.3 8.6 8.0 3.4 51.9 3.3 51.8 11.5 5.1 78.0 11.6 10.6 5.5 85.9 4.9 82.4 6.9 7.2 2.6 2.8 37.0 40.0 11.6 11.7 4.7 67.7 4.5 66.4 6.8 2.7 41.8 10.S 4.4 67.9 15.1 6.1 2.6 5.2 6.8 2.8 9.3 4.2 5.4 2.2 110.1 10.8 4.2 69.3 6.4 2.7 45.7 9.0 3.9 71.6 5.2 2.2 48. Continued— Occupational injury and illness incidence rates by industry, United States Incidence rates per 100 full-time workers2 Industry and type of case1 1977 1978 1979 1980 1981 1982 1983 1984 1985 Nondurable goods F o o d a n d k in d r e d p ro d u c ts : T o ta l c a s e s ....................................................................... 19.5 8.5 130.1 19.4 8.9 132.2 19.9 9.5 141.8 18.7 9.0 136.8 9.1 3.8 66.7 8.7 4.0 58.6 9.3 4.2 64.8 3.8 45.8 3.9 56.8 T o ta l c a s e s ....................................................................... 10.2 10.2 L o s t w o r k d a y c a s e s ..................................................... 2.9 57.4 3.4 61.5 9.7 3.4 61.3 9.1 3.3 62.8 3.2 59.2 L o s t w o r k d a y c a s e s .................................................... L o s t w o r k d a y s ................................................................ 17.8 16.7 16.7 129.3 16.5 7.9 131.2 16.7 130.7 131.6 138.0 7.2 3.2 44.6 6.5 3.0 42.8 7.7 3.2 51.7 7.3 3.0 51.7 8.0 8.6 8.0 8.1 8.1 T o b a c c o m a n u fa c tu rin g : T o ta l c a s e s ....................................................................... L o s t w o r k d a y c a s e s .................................................... L o s t w o r k d a y s ................................................................. 8.1 8.2 T e x tile m ill p ro d u c ts : L o s t w o r k d a y s ................................................................. 8.8 7.6 7.4 53.8 51.4 3.0 54.0 7.5 3.0 57.4 6.0 2.1 6.4 2.4 40.6 6.7 2.5 40.9 44.1 10.4 4.7 93.8 4.7 94.6 2.8 2.8 A p p a r e l a n d o th e r t e x tile p ro d u c ts : T o ta l c a s e s ....................................................................... L o s t w o r k d a y c a s e s ..................................................... L o s t w o r k d a y s ................................................................. 6.7 2.0 6.5 2.2 6.5 2.2 6.4 2.2 6.3 2.2 32.4 34.1 34.9 35.0 13.6 5.0 13.5 5.7 103.3 13.5 10.6 10.0 108.4 12.7 5.8 112.3 5.4 103.6 4.9 99.1 4.5 90.3 7.0 2.9 43.8 7.1 3.1 45.1 6.9 3.1 46.5 6.7 3.0 47.4 45.7 2.9 44.6 6.5 2.9 46.0 6.3 2.9 49.2 7.8 3.3 50.9 7.7 3.5 54.9 3.1 50.3 3.0 48.1 5.7 2.5 39.4 5.5 2.5 42.3 5.3 2.4 40.8 5.1 2.3 38.8 7.9 3.4 58.3 7.7 3.6 62.0 7.2 3.5 59.1 6.7 2.9 51.2 5.3 2.5 46.4 5.5 2.4 46.8 5.1 2.4 53.5 5.1 2.4 49.9 13.6 6.4 104.3 13.4 6.3 107.4 10.5 4.7 94.4 10.3 4.6 88.3 36.4 P a p e r a n d a llie d p ro d u c ts : T o ta l c a s e s ....................................................................... L o s t w o r k d a y c a s e s ..................................................... L o s t w o r k d a y s ................................................................. P rin tin g a n d p u b lis h in g : T o ta l c a s e s ....................................................................... L o s t w o r k d a y c a s e s ..................................................... L o s t w o r k d a y s .................................................................. 101.6 6.8 2.7 41.7 6.0 11.6 6.6 2.8 6.6 C h e m ic a ls a n d a llie d p ro d u c ts : T o ta l c a s e s ........................................................................ L o s t w o r k d a y c a s e s ..................................................... L o s t w o r k d a y s .................................................................. 8.0 3.1 51.4 6.8 6.6 P e tro le u m a n d c o a l p ro d u c ts : T o ta l c a s e s ......................................................................... 8.1 L o s t w o r k d a y c a s e s ...................................................... 3.3 59.2 L o s t w o r k d a y s .................................................................. R u b b e r a n d m is c e lla n e o u s p la s tic s p ro d u c ts : T o ta l c a s e s ......................................................................... L o s t w o r k d a y c a s e s ...................................................... L o s t w o r k d a y s ................................................................... L o s t w o r k d a y c a s e s ...................................................... L o s t w o r k d a y s ................................................................... 10.2 16.8 7.6 118.1 17.1 17.1 14.6 7.2 117.4 13.0 127.1 15.5 7.4 118.6 12.7 125.5 100.9 101.4 11.5 4.4 68.9 11.7 4.7 72.5 11.5 4.9 76.2 11.7 5.0 82.7 11.5 5.1 82.6 9.9 4.5 86.5 4.4 87.3 9.7 5.3 95.9 10.1 10.0 5.7 102.3 5.9 107.0 9.4 5.5 104.5 9.0 5.3 100.6 8.5 4.9 96.7 4.7 94.9 5.2 105.1 5.0 107.1 7.7 2.9 44.0 7.9 3.2 44.9 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 8.5 3.6 52.5 8.9 3.9 57.5 8.8 8.2 7.4 2.7 40.5 2.8 8.1 8.2 6.0 6.2 L e a th e r a n d le a th e r p ro d u c ts : T o ta l c a s e s ......................................................................... 6.7 2.6 31.7 10.0 Transportation and public utilities Total c a s e s ......................................................................... Lost workday c a s e s .......................................................... Lost workdays .................................................................. Wholesale and retail trade Total c a s e s .................................................................. Lost workday c a s e s ................................................... Lost w orkdays............................................................. Wholesale trade: Total c a s e s ................................................................... Lost workday c a s e s ................................................... Lost w o rkda ys.............................................................. Retail trade: Total c a s e s ................................................................... Lost workday c a s e s ................................................... Lost w o rkdays.............................................................. Finance, Insurance, and real estate Total c a se s.......................................................................... . Lost workday c a s e s ........................................................... Lost w orkdays...................................................................... 2.0 .8 7.5 39.7 2.1 .8 8.0 8.2 8.8 8.6 4.1 59.1 3.9 58.2 7.7 3.6 54.7 7.1 3.4 52.1 7.0 3.2 50.6 7.2 3.5 55.5 7.2 3.5 59.8 7.7 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 2.1 2.0 .9 15.4 10.4 12.5 .9 13.3 2.0 .8 12.2 .8 11.6 .9 13.2 2.0 .9 12.8 1.9 .9 13.6 5.5 5.5 2.4 36.2 5.5 2.5 38.1 5.2 2.3 35.8 5.0 2.3 35.9 4.9 2.3 35.8 5.1 2.4 37.0 5.2 2.5 41.1 1.9 2.0 Services Total c a s e s ............. Lost workday cases Lost w orkdays........ 1 Total cases include fatalities. 2 The incidence rates represent the number of injuries and illnesses or lost workdays per 100 full-time workers and were calculated as: (N/EH) X 200,000, where: N = number of injuries and illnesses or lost workdays. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2.2 35.4 5.4 2.6 45.4 EH = total hours worked by all employees during calendar year. = base for 100 full-time equivalent workers (working 40 hours per week, 50 weeks per year.) Excludes farms with fewer than 11 employees since 1976. 200,000 3 BLS International Price Data Quarterly measures of price change for U.S. imports and exports under various classifications, useful for different types of analysis: • SITC, a United Nations classification for international comparisons; • SIC-based, used for industry comparisons; • End use, for use with National Accounts data. How to obtain: Mailing List: To obtain the quarterly news release, ask to be put on a mailing list. Call Bureau of Labor Statistics, Division of Interna tional Prices (202) 272-5020. Electronic News Release: Quickest. Accessible electronically immediately at release time through BLS news release service. Write to the Office of Publications, Bureau of Labor Statistics, Washington D.C. 20212, or call (202) 523-1913. Data Diskettes: Monthly Labor Review: Articles twice a year provide in-depth analyses of import and export price movements and developments in U.S. trade. Subscription available from Superintendent of Documents, U.S. Government Printing Office, Washington D.C. 20402, for $16 a year; $4.75 single copy. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Quarterly import and export price indexes for 450 Standard Industrial Trade Classification categories for the most recent eight quarters. Price: $35 each, $104 for four quarters. For infor mation, call the Office of Publications, Bureau of Labor Statistics (202) 523-1090. Telephone: For comparisons of United States, German, and Japanese export price indexes call Division of International Prices (202) 272-5020. U S GOVERNMENT PRINTING OFFICE : 1987 1 8 1 -5 1 2 /4 0 0 1 3 FIELD TO FACTORY: Afro-American Migration 1915-1940 Hundreds of thousands of Afro-Americans left the rural South between 1915 and 1940 in search of better lives in urban areas of the North. This movement, called the Great Migration, changed not only the lives of migrants but also the very structure of American society. It led to the emergence of large, predominantly black urban enclaves in the North. This phenomenon, which set the scene for modern life in most American cities, is now the subject of a major exhibition, ‘‘Field to Factory: Afro- American Migration, 1915-1940” at the Smithsonian Institution’s National Museum of American History in Washington, D.C. The exhibition will be on display through February 1988, after which it will travel to some 20 other locations. Three major sections of the exhibition treat life in the South, the journey north and the new Northern urban world. The photos on this page and on the cover are from the exhibition. Segregated waiting room at Carolina Coach Company in Durham, North Carolina, May 1940. (Photo courstesy Library of Congress) Hod carriers (brick-layers’ assistants) at work. (Photo courtesy Temple University Libriaries, Urban Archives Center) Man spraying lacquer on Ford bodies, Briggs Body Com pany, Detroit, Michigan, 1933. (Photo courtesy Henry Ford Museum and Greenfield Village, Detroit, Michigan) Woman in a sewing machine mill in the North. (Photo courtesy National Archives) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Man pouring hot metal into molds, Ford Motor Company, River Rouge Plant, Dearborn, Michigan, 1933. (Photo courtesy Henry Ford Museum and Greenfield Village, Dearborn, Michigan) Women weighing wire coils and recording weights to establish wage rates at a northern furniture factory. (Photo courtesy National Archives) 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 MLR l ib r a l ib r a r y FED R ^ s pO BOX SAINT L 442L ISSDUE013R LO UI S