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Historical, technical information:(202) 606-5606 Current data: (202) 606-7828 Media contact:(202) 606-5902 USDL 95-158 TRANSMISSION OF THIS MATERIAL IS EMBARGOED UNTIL 10:00 A.M. EDT TUESDAY, MAY 9, 1995 PRODUCTIVITY AND COSTS First Quarter 1995 The Bureau of Labor Statistics of the U.S. Department of Labor today reported preliminary productivity data--as measured by output per hour of all persons--for the first quarter of 1995. The seasonally-adjusted annual rates of productivity change in the first quarter were: 0.4 percent in the business sector, and 0.7 percent in the nonfarm business sector. In both sectors, first-quarter productivity gains were much smaller than gains recorded in the fourth quarter of 1994 (as revised). In manufacturing, productivity changes in the first quarter were: 3.6 percent in manufacturing, 3.8 percent in durable goods manufacturing, and 3.2 percent in nondurable goods manufacturing. The productivity increase in manufacturing in the first quarter was slightly higher than that recorded in the fourth quarter of 1994, and both the output and hours increases were smaller. Output and hours in manufacturing, which includes about 20 percent of U.S. business-sector employment, tend to change more from quarter to quarter than in the business and nonfarm business sectors. First-quarter measures are summarized in table A and appear in detail in tables 1 through 5. Output measures for business and nonfarm business are based on measures of gross domestic product prepared by the Bureau of Economic Analysis (BEA) of the U.S. Department of Commerce. Quarterly output measures for manufacturing reflect independent indexes of industrial production prepared by the Board of Governors of the Federal Reserve System. See Technical Notes (page 7) for further information on data sources. In quarter 1994 as percent nonfinancial corporations, productivity rose 3.0 percent in the fourth of 1994, as output rose 8.4 percent and hours rose 5.2 percent. For a whole, productivity in nonfinancial corporations increased 2.6 (tables B and 6). 2 Table A. Productivity and costs: First-quarter 1995 measures (Seasonally adjusted annual rates) Sector Productivity Output Hours Real Hourly hourly Unit compen- compen- labor sation sation costs Percent change from preceding quarter Business Nonfarm business Manufacturing Durable Nondurable 0.4 0.7 3.6 3.8 3.2 3.2 3.3 6.1 7.2 4.5 2.8 2.6 2.4 3.3 1.2 3.9 4.1 4.9 5.1 4.4 0.8 1.0 1.7 1.9 1.3 3.5 3.4 1.2 1.2 1.1 Percent change from same quarter a year ago Business Nonfarm business Manufacturing Durable Nondurable 1.5 1.4 4.0 4.4 3.4 4.8 4.6 6.7 8.0 5.0 3.3 3.2 2.6 3.4 1.5 2.7 2.9 2.4 2.4 2.4 -0.2 0.0 -0.4 -0.5 -0.5 1.2 1.4 -1.5 -1.9 -1.0 Business From the fourth quarter of 1994 to the first quarter of 1995, business sector productivity increased at a 0.4 percent annual rate. Output and hours advanced 3.2 percent and 2.8 percent, respectively. During the fourth quarter of 1994, output had increased 7.8 percent and hours of all persons engaged in the sector increased 3.6 percent (seasonally adjusted annual rates), and productivity went up 4.1 percent (revised). See table 1. Hourly compensation increased 3.9 percent during the first quarter of 1995, compared with a 3.1 percent rise in the fourth quarter of 1994. This measure includes wages and salaries, supplements, employer contributions to employee benefit plans, and taxes. Unit labor costs, which reflect changes in hourly compensation and productivity, increased at a 3.5 percent rate during the first quarter. Unit labor costs had declined 0.9 percent in the fourth quarter of 1994. Real hourly compensation, which takes into account changes in the Consumer Price Index for All Urban Consumers (CPI-U), rose at a 0.8 percent annual rate in the first quarter, about the same as the 0.9 percent rise in the fourth quarter of 1994. The implicit price deflator for the business sector, which reflects changes in unit labor costs and unit nonlabor payments, increased 1.8 percent in the first quarter, compared with a 0.7 percent increase during the fourth quarter of 1994. 3 Nonfarm business Productivity rose 0.7 percent in the nonfarm business sector in the first quarter, slightly more than in the business sector as a whole. Nonfarm output rose 3.3 percent, and hours of all persons increased 2.6 percent. During the fourth quarter of 1994, productivity had risen 4.0 percent in this sector, reflecting gains of 7.7 percent in output and 3.5 percent in hours (table 2). Hourly compensation increased at a 4.1 percent annual rate in the first quarter, compared with a 3.5 percent increase one quarter earlier. When the rise in the CPI-U was taken into account, real hourly compensation rose 1.0 percent; it had increased 1.2 percent in the fourth quarter. Unit labor costs rose 3.4 percent, compared with a 0.6 percent decline during the fourth quarter of 1994. The implicit price deflator for nonfarm business output rose 1.7 percent in the first quarter, compared with a 0.5 percent rise one quarter earlier. Manufacturing Productivity increased at a 3.6 percent seasonally adjusted annual rate in manufacturing in the first quarter of 1995, as output rose 6.1 percent and hours of all persons increased 2.4 percent (seasonally adjusted annual rates). In the fourth quarter of 1994, productivity rose 3.4 percent as output and hours increased 8.0 and 4.5 percent, respectively. Hourly compensation of all manufacturing workers increased 4.9 percent during the first quarter. An adjustment to source data received from BEA reflecting a large pension plan contribution in the motor vehicles industry contributed to this increase. (See Gross Domestic Product: First Quarter 1995 (Advance) release, BEA 95-18, April 28, 1995.) Real hourly compensation rose 1.7 percent when the increase in consumer prices was taken into account. Unit labor costs rose at a 1.2 percent annual rate in the first quarter of 1995, the first increase since the third quarter of 1993. 4 Table B. Nonfinancial corporations: measures (Seasonally adjusted annual rates) Period Productivity Output Hours Fourth-quarter productivity and cost Real Hourly hourly Unit Implicit compen- compen- labor Unit price sation sation costs profits deflator Percent change from preceding quarter 1994 IV 3.0 8.4 5.2 2.7 0.5 -0.3 2.5 -0.2 Percent change from same quarter of preceding year 1994 IV 1.7 5.8 4.0 2.8 0.1 1.0 4.2 1.4 Fourth-quarter and annual measures for nonfinancial corporations Fourth-quarter and annual 1994 measures of productivity and costs also were announced today for the nonfinancial corporate sector (tables B, C, and 6). Output per all-employee hour rose 3.0 percent from the third to the fourth quarter of 1994. Output rose 8.4 percent, and all-employee hours rose 5.2 percent (seasonally adjusted annual rates). Hourly compensation increased 2.7 percent in the fourth quarter, and unit labor costs fell 0.3 percent. The implicit price deflator for nonfinancial corporate output fell 0.2 percent during the fourth quarter. 5 Table C. Nonfinancial corporations: Annual changes in productivity and related measures, 1985-1994 Measure Productivity.... Output.......... Hours........... Hourly comp..... Real hourly comp. 1985 1.0 3.5 2.5 4.1 0.5 1986 1987 1988 1989 1990 1991 1992 1993 1994 2.6 1.7 3.2 4.4 0.5 2.7 4.7 3.2 2.8 -0.5 Unit labor costs 3.1 2.0 1.4 Unit nonlabor cost 1.2 2.4 0.1 Total unit cost. 2.5 2.1 1.0 Unit profits.... -0.2 -10.8 14.7 Impl. price defl. 2.3 0.8 2.2 1.9 -1.6 1.1 2.0 5.4 1.3 1.1 -1.1 3.4 2.9 -0.1 -3.1 4.1 3.4 5.3 4.8 0.0 -1.3 -0.1 0.6 3.0 3.2 0.1 4.6 1.6 3.0 2.6 5.0 6.1 2.0 3.4 3.0 2.4 0.0 -0.1 2.2 5.1 4.1 2.7 1.6 0.0 -0.2 3.8 6.1 3.0 3.7 -2.1 -1.9 0.2 2.6 5.4 3.8 3.0 0.5 -0.5 -0.1 6.6 -8.2 -0.6 -1.7 7.6 14.0 12.2 3.0 4.1 3.4 2.6 1.1 0.8 1.1 Productivity was 2.6 percent higher in 1994 than in 1993 in nonfinancial corporations. This reflects an output increase of 6.1 percent, the largest since 1984 (when it rose 8.1 percent), and an increase in employee hours of 3.4 percent. The 1994 increase in hourly compensation (2.4 percent) was the smallest increase in the history of the series, which goes back to 1958. Total unit costs in 1994 fell 0.1 percent, reflecting decreases in unit labor costs of 0.2 percent and increases in unit nonlabor costs of 0.2 percent. Unit profits rose at a 12.2 percent annual rate. 6 Table D. Previous and revised productivity and related measures Quarterly percent changes at seasonally adjusted annual rates Sector Productivity Output Hours Real Hourly hourly Unit compen- compen- labor sation sation costs Fourth quarter 1994 Business: Previous.... Current..... 1.7 4.1 5.4 7.8 3.6 3.6 3.1 3.1 0.8 0.9 1.3 -0.9 Nonfarm business: Previous.... 1.7 5.3 3.5 3.4 1.2 1.7 Current..... 4.0 7.7 3.5 3.5 1.2 -0.6 Manufacturing: Previous.... Current..... 3.1 3.4 7.7 8.0 4.5 4.5 3.4 3.4 1.1 1.1 0.3 0.0 Revised measures Current and previous measures for the fourth quarter of 1994 for the business, nonfarm business, and manufacturing sectors are compared in table D. The quarterly movements in productivity and output differ from the figures reported on March 8, based on information then available. There were significant upward revisions to output data for the business and nonfarm business sectors. Next release date The next release of Productivity and Costs is scheduled for 10:00 AM EDT, Wednesday, June 14, 1995. First-quarter measures for nonfinancial corporations and revised measures for business, nonfarm business, and manufacturing will be released at that time. 7 TECHNICAL NOTES Labor Input: The primary source of hours and employment data is the BLS Current Employment Statistics (CES) program, which provides monthly survey data on total employment and average weekly hours of production and nonsupervisory workers in nonagricultural establishments. Jobs rather than persons are counted. Weekly hours are adjusted to the hours at work definition using the BLS Hours at Work survey, conducted for this purpose. Data from the BLS Current Population Survey (CPS) are used for farm labor; in the nonfarm sector, the National Income and Product Accounts (NIPA) prepared by the Bureau of Economic Analysis of the Department of Commerce and the CPS are used to measure labor input for government enterprises, proprietors and unpaid family workers. Output: Business output is equal to gross domestic product (GDP) in constant 1987 dollars, less general government, output of nonprofit institutions, output of paid employees of private households, rental value of owner-occupied dwellings, and the statistical discrepancy in computing the NIPA. Corresponding exclusions are also made in labor inputs. Business output was about 78 percent of GDP in 1992. Nonfarm business, which also excludes farming, was about 77 percent of GDP in 1992. Total manufacturing measures are computed by summing series prepared for the durable and nondurable goods sectors. Durables include the following 2-digit SIC industries: Primary metal industries; fabricated metal products; nonelectrical machinery; industrial and commercial machinery and computer equipment; electronic and other electrical equipment; transportation equipment; instruments; lumber and lumber products; furniture and fixtures; stone, clay, and glass and concrete products; and miscellaneous manufactures. Nondurables include: Food and kindred products, tobacco products, textile mill products apparel products, paper and allied products, printing and publishing, chemicals and chemical products, petroleum refining and related industries, rubber and plastic products, leather and leather products. Manufacturing accounted for about 19 percent of GDP in 1992. Quarterly manufacturing output measures are based on the index of industrial production prepared monthly by the Board of Governors of the Federal Reserve System adjusted by BLS to annual manufacturing output levels (gross product originating) from the National Income and Product Accounts prepared by the Bureau of Economic Analysis of the U.S. Department of Commerce. Nonfinancial corporate output is equal to GDP in constant 1987 dollars, less the output of nonprofit institutions, output of paid employees of private households, rental value of owner-occupied dwellings, unincorporated business, the output of corporations engaged in banking, finance, stock and commodity trading, and credit and insurance agencies, and the statistical discrepancy in computing the NIPA. Nonfinancial corporations accounted for about 56 percent of GDP in 1992. Productivity: These productivity measures describe the relationship between real output and the labor time involved in its production. They show the changes from period to period in the amount of goods and services produced per hour. Although these measures relate output to hours at work of all persons engaged in a sector, they do not measure the specific contribution of labor, capital, or any other factor of production. Rather, they reflect the joint effects of many influences, 8 including changes in technology; capital investment; level of output; utilization of capacity, energy, and materials; the organization of production; managerial skill; and the characteristics and effort of the work force. Information in this release will be made available to sensory-impaired individuals upon request. Voice phone: 202-606-STAT; TDD phone: 202-606-5897; TDD message referral phone number: 1800-326-2577. Table 1. Business sector: Productivity, hourly compensation, unit labor costs, and prices, seasonally adjusted Real Year Output per Hours CompensacompensaUnit Unit nonImplicit and hour of of all tion per tion per labor labor pay- price quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4) --------------------------------------------------------------------------------------------------------Indexes 1982=100 1993 1994 I II III IV 116.2 116.4 117.3 119.0 138.1 139.6 140.9 143.9 118.9 119.9 120.1 121.0 158.8 160.0 161.2 162.1 107.0 107.0 107.4 107.2 136.6 137.5 137.4 136.3 149.5 149.6 150.4 153.8 140.8 141.4 141.6 142.1 ANNUAL 117.2 140.6 120.0 160.5 107.2 136.9 150.9 141.5 I II III IV 119.8 119.2 120.3 r121.5 145.8 147.2 148.8 r151.6 121.7 123.5 123.7 124.8 164.6 164.7 166.2 167.4 108.2 107.6 107.6 107.8 137.4 138.2 138.1 r137.8 153.2 155.3 157.6 r158.9 142.6 143.8 144.5 144.8 ANNUAL r120.1 r148.4 123.5 165.6 107.8 r137.9 r156.3 143.9 1995 I 121.6 152.8 125.7 169.0 108.1 139.0 158.4 145.4 --------------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1993 1994 I II III IV -1.9 0.6 3.3 5.7 0.6 4.2 4.0 8.6 2.5 3.6 0.7 2.8 2.6 3.1 3.0 2.4 -0.4 0.1 1.3 -0.8 4.6 2.5 -0.3 -3.1 -2.0 0.3 2.1 9.4 2.3 1.7 0.6 1.2 ANNUAL 1.5 3.8 2.2 3.6 0.6 2.0 1.7 1.9 I II III IV 2.9 -2.0 3.7 r4.1 5.5 3.7 4.5 r7.8 2.5 5.9 0.8 3.6 6.3 0.2 3.6 3.1 4.1 -2.3 0.0 r0.9 3.3 2.3 -0.2 r-0.9 -1.7 5.8 5.9 r3.4 1.5 3.5 2.0 r0.7 ANNUAL r2.5 r5.5 2.9 3.2 0.6 r0.7 r3.6 1.7 1995 I 0.4 3.2 2.8 3.9 0.8 3.5 -1.2 1.8 --------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1993 1994 I II III IV 1.5 1.4 1.3 1.9 3.3 3.8 3.6 4.3 1.8 2.4 2.3 2.4 4.3 4.1 3.3 2.8 1.1 0.9 0.5 0.0 2.8 2.7 2.0 0.9 0.7 0.6 3.1 2.4 2.0 1.9 2.4 1.4 ANNUAL 1.5 3.8 2.2 3.6 0.6 2.0 1.7 1.9 I II III IV 3.1 2.4 2.5 r2.1 5.6 5.4 5.6 r5.4 2.4 3.0 3.0 3.2 3.7 3.0 3.1 3.3 1.1 0.5 0.2 0.6 0.6 0.5 0.6 r1.1 2.5 3.8 4.8 r3.3 1.2 1.7 2.0 1.9 ANNUAL r2.5 r5.5 2.9 3.2 0.6 r0.7 r3.6 1.7 1995 I 1.5 4.8 3.3 2.7 -0.2 1.2 3.4 2.0 --------------------------------------------------------------------------------------------------------See footnotes following table 6. May 9, 1995 r=revised Source: Bureau of Labor Statistics 11 Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs, and prices, seasonally adjusted Real Year Output per Hours CompensacompensaUnit Unit nonImplicit and hour of of all tion per tion per labor labor pay- price quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator(4) --------------------------------------------------------------------------------------------------------Indexes 1982=100 1993 1994 I II III IV 114.4 114.5 115.6 117.0 138.3 139.9 141.5 144.3 120.9 122.1 122.4 123.3 157.2 158.2 159.3 160.2 106.0 105.8 106.1 105.9 137.5 138.1 137.7 136.9 151.5 151.8 153.5 156.1 142.0 142.5 142.8 143.1 ANNUAL 115.4 141.0 122.2 158.7 106.0 137.5 153.3 142.6 I II III IV 117.9 117.2 118.2 r119.3 146.1 147.3 148.8 r151.6 124.0 125.6 126.0 127.1 162.6 162.9 164.1 165.5 106.9 106.4 106.3 106.6 137.9 138.9 138.9 r138.7 155.3 158.1 160.8 r161.7 143.5 145.1 145.9 146.1 ANNUAL r118.1 r148.5 125.7 163.6 106.6 r138.6 r159.0 145.2 1995 I 119.5 152.9 127.9 167.2 106.9 139.9 161.2 146.7 --------------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1993 1994 I II III IV -2.0 0.4 4.0 4.9 1.0 4.7 4.9 7.9 3.0 4.3 0.9 2.9 2.1 2.4 2.8 2.4 -0.9 -0.6 1.1 -0.9 4.1 2.0 -1.2 -2.4 -1.4 0.8 4.4 7.1 2.2 1.6 0.7 0.8 ANNUAL 1.5 4.1 2.5 3.3 0.2 1.7 2.4 1.9 I II III IV 2.9 -2.1 3.2 r4.0 5.2 3.2 4.3 r7.7 2.3 5.5 1.1 3.5 6.1 0.7 3.1 r3.5 3.9 -1.8 -0.4 1.2 3.1 2.9 -0.1 r-0.6 -2.1 7.5 6.9 r2.5 1.2 4.5 2.3 0.5 ANNUAL r2.3 r5.3 2.9 3.1 r0.6 r0.8 r3.7 1.8 1995 I 0.7 3.3 2.6 4.1 1.0 3.4 -1.4 1.7 --------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1993 1994 I II III IV 1.6 1.2 1.5 1.8 3.5 4.0 4.2 4.6 1.9 2.8 2.6 2.7 4.2 3.7 2.9 2.4 1.0 0.5 0.1 -0.3 2.6 2.4 1.4 0.6 1.3 0.9 4.4 2.7 2.1 1.9 2.4 1.3 ANNUAL 1.5 4.1 2.5 3.3 0.2 1.7 2.4 1.9 I II III IV 3.0 2.4 2.2 r2.0 5.7 5.3 5.2 r5.1 2.6 2.8 2.9 3.1 3.4 3.0 3.1 3.3 0.9 0.6 0.2 0.7 0.3 0.6 0.9 r1.3 2.5 4.2 4.8 r3.6 1.1 1.8 2.2 2.1 ANNUAL r2.3 r5.3 2.9 3.1 r0.6 r0.8 r3.7 1.8 1995 I 1.4 4.6 3.2 2.9 0.0 1.4 3.8 2.2 --------------------------------------------------------------------------------------------------------See footnotes following table 6. May 9, 1995 r=revised Source: Bureau of Labor Statistics Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs, seasonally adjusted Real Year Output per Hours CompensacompensaUnit and hour of of all tion per tion per labor quarter all persons Output persons hour(1) hour(2) costs -------------------------------------------------------------------------------------------------Indexes 1982=100 1993 1994 I II III IV 130.0 130.7 131.7 133.6 134.0 134.4 135.4 137.7 103.1 102.8 102.8 103.0 150.0 152.1 153.6 155.1 101.1 101.8 102.4 102.5 115.4 116.4 116.6 116.1 ANNUAL 131.6 135.4 102.9 152.8 102.0 116.1 I II III IV 135.7 137.6 138.8 r140.0 140.2 142.7 144.6 r147.5 103.3 103.7 104.2 105.4 156.6 156.1 157.2 r158.6 103.0 102.0 101.8 102.1 115.4 113.4 113.3 r113.3 ANNUAL 138.0 143.7 104.2 157.1 102.3 113.8 1995 I 141.2 149.7 106.0 160.4 102.6 113.6 -------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1993 1994 I II III IV 3.7 2.4 3.0 6.0 6.3 1.3 3.0 6.9 2.6 -1.1 0.0 0.9 -2.0 6.0 3.9 3.9 -4.9 2.9 2.2 0.6 -5.5 3.5 0.9 -2.0 ANNUAL 3.2 4.1 0.8 3.3 0.3 0.1 I II III IV 6.4 5.6 3.5 r3.4 7.4 7.2 5.6 r8.0 1.0 1.5 2.0 4.5 4.0 -1.4 3.0 3.4 1.8 -3.9 -0.5 1.1 -2.3 -6.7 -0.5 r0.0 ANNUAL 4.9 r6.2 1.2 2.8 0.2 -2.0 1995 I 3.6 6.1 2.4 4.9 1.7 1.2 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1993 1994 I II III IV 2.9 3.1 3.2 3.8 4.2 3.7 4.0 4.4 1.3 0.6 0.7 0.6 3.3 3.6 3.5 2.9 0.1 0.5 0.7 0.2 0.4 0.5 0.3 -0.8 ANNUAL 3.2 4.1 0.8 3.3 0.3 0.1 I II III IV 4.4 5.3 5.4 r4.7 4.6 6.1 6.8 r7.1 0.2 0.8 1.3 2.2 4.4 2.6 2.4 2.2 1.9 0.2 -0.5 -0.4 0.0 -2.5 -2.9 r-2.4 ANNUAL 4.9 r6.2 1.2 2.8 0.2 -2.0 1995 I 4.0 6.7 2.6 2.4 -0.4 -1.5 -------------------------------------------------------------------------------------------------See footnotes following table 6. May 9, 1995 r=revised Source: Bureau of Labor Statistics Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs, seasonally adjusted Real Year Output per Hours CompensacompensaUnit and hour of of all tion per tion per labor quarter all persons Output persons hour(1) hour(2) costs -------------------------------------------------------------------------------------------------Indexes 1982=100 1993 1994 I II III IV 141.0 142.3 143.4 146.6 141.6 142.2 143.5 147.4 100.4 99.9 100.1 100.5 147.4 149.4 150.7 152.3 99.3 100.0 100.4 100.7 104.5 105.0 105.1 103.9 ANNUAL 143.5 143.7 100.1 150.1 100.2 104.6 I II III IV 149.3 151.2 153.0 154.3 150.8 153.4 156.3 r160.0 101.0 101.4 102.2 103.7 154.0 153.1 154.1 155.7 101.2 100.0 99.8 100.3 103.1 101.2 100.7 100.9 ANNUAL 151.9 155.1 102.1 154.1 100.4 101.5 1995 I 155.8 162.8 104.5 157.6 100.7 101.2 -------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1993 1994 I II III IV 5.5 3.7 3.0 9.4 8.5 1.8 3.9 11.2 2.8 -1.9 0.8 1.7 -4.8 5.6 3.4 4.4 -7.7 2.6 1.7 1.1 -9.8 1.9 0.3 -4.6 ANNUAL 4.5 5.4 0.8 2.8 -0.2 -1.7 I II III IV 7.3 5.3 4.8 r3.6 9.5 7.1 7.8 r9.7 2.0 1.7 2.9 5.9 4.4 -2.3 2.7 4.1 2.3 -4.7 -0.8 1.8 -2.7 -7.2 -1.9 r0.5 ANNUAL 5.9 8.0 2.0 2.7 0.1 -3.0 1995 I 3.8 7.2 3.3 5.1 1.9 1.2 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1993 1994 I II III IV 4.2 4.3 4.3 5.4 5.3 4.8 5.2 6.3 1.0 0.4 0.8 0.8 3.0 3.1 2.9 2.1 -0.1 0.0 0.1 -0.7 -1.2 -1.1 -1.3 -3.2 ANNUAL 4.5 5.4 0.8 2.8 -0.2 -1.7 I II III IV 5.8 6.2 6.7 5.2 6.5 7.9 8.9 8.5 0.7 1.6 2.1 3.1 4.4 2.4 2.3 2.2 1.9 0.0 -0.6 -0.4 -1.3 -3.6 -4.1 -2.9 ANNUAL 5.9 8.0 2.0 2.7 0.1 -3.0 1995 I 4.4 8.0 3.4 2.4 -0.5 -1.9 -------------------------------------------------------------------------------------------------See footnotes following table 6. May 9, 1995 r=revised Source: Bureau of Labor Statistics Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs, seasonally adjusted Real Year Output per Hours CompensacompensaUnit and hour of of all tion per tion per labor quarter all persons Output persons hour(1) hour(2) costs -------------------------------------------------------------------------------------------------Indexes 1982=100 1993 1994 I II III IV 116.5 116.7 117.6 118.0 124.7 124.9 125.5 125.8 107.0 107.0 106.7 106.6 155.2 157.7 159.5 160.7 104.6 105.5 106.3 106.2 133.1 135.1 135.6 136.2 ANNUAL 117.2 125.2 106.8 158.3 105.7 135.0 I II III IV 119.4 121.2 121.7 r122.6 127.2 129.5 130.3 r132.1 106.5 106.9 107.1 107.8 161.9 161.9 163.2 164.0 106.5 105.8 105.7 105.6 135.6 133.5 134.1 r133.8 ANNUAL 121.2 129.8 107.1 162.8 106.0 r134.2 1995 I 123.6 133.6 108.1 165.8 106.0 134.2 -------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1993 1994 I II III IV 1.2 0.7 3.0 1.4 3.5 0.6 1.8 1.1 2.3 -0.1 -1.1 -0.3 2.4 6.6 4.6 3.1 -0.6 3.5 2.9 -0.2 1.2 5.9 1.6 1.7 ANNUAL 1.4 2.3 0.9 4.1 1.1 2.7 I II III IV 5.0 6.1 1.6 r3.0 4.6 7.4 2.5 r5.6 -0.4 1.3 0.9 r2.6 3.1 -0.1 3.3 r2.1 0.9 -2.6 -0.3 -0.2 -1.9 -5.8 1.7 r-0.9 ANNUAL 3.4 r3.7 0.2 2.8 0.3 r-0.6 1995 I 3.2 4.5 1.2 4.4 1.3 1.1 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1993 1994 I II III IV 1.0 1.5 1.7 1.5 2.7 2.3 2.3 1.8 1.7 0.8 0.6 0.2 3.8 4.4 4.4 4.2 0.6 1.3 1.6 1.4 2.7 2.9 2.7 2.6 ANNUAL 1.4 2.3 0.9 4.1 1.1 2.7 I II III IV 2.5 3.8 3.5 r3.9 2.0 3.7 3.9 r5.0 -0.4 -0.1 0.4 1.1 4.3 2.7 2.3 2.1 1.8 0.2 -0.5 r-0.5 1.8 -1.1 -1.1 r-1.7 ANNUAL 3.4 r3.7 0.2 2.8 0.3 r-0.6 1995 I 3.4 5.0 1.5 2.4 -0.5 -1.0 -------------------------------------------------------------------------------------------------See footnotes following table 6. May 9, 1995 r=revised Source: Bureau of Labor Statistics Table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor costs, unit profits, and prices, seasonally adjusted Output Hourly Real Unit Total Unit Implicit Year per allcompenhourly Unit nonunit proprice and employee Employee sation compenlabor labor cost fits deflator quarter hour Output hours (1) sation(2) costs cost(6) (7) (8) (4) ---------------------------------------------------------------------------------------------------------Indexes 1982=100 1992 1993 1994 I II III IV 116.8 117.6 119.1 120.6 137.3 138.8 140.7 143.4 117.6 118.1 118.1 118.9 147.7 149.4 151.5 153.1 102.7 103.1 103.8 104.0 126.5 127.1 127.2 127.0 119.3 118.0 119.0 115.7 124.5 124.5 124.9 123.8 170.4 175.6 171.0 191.2 127.3 127.6 127.7 127.9 ANNUAL 118.5 140.0 118.2 150.4 103.5 126.9 118.0 124.4 177.2 127.7 I II III IV 120.0 121.3 122.7 124.1 143.3 145.9 148.1 150.9 119.4 120.3 120.7 121.6 154.0 154.5 155.4 155.9 103.8 103.4 103.5 103.1 128.3 127.3 126.7 125.7 116.8 115.8 115.8 114.8 125.0 124.1 123.6 122.6 183.7 199.4 202.5 220.9 128.7 128.7 128.5 128.7 ANNUAL 122.0 147.0 120.5 154.9 103.5 127.0 115.8 123.8 201.9 128.6 I II III IV 125.1 124.6 125.2 126.2 153.0 154.8 156.5 159.6 122.3 124.2 124.9 126.5 157.9 157.9 159.1 160.2 103.8 103.1 103.1 103.2 126.2 126.7 127.1 127.0 116.6 115.2 116.2 115.9 123.5 123.4 124.0 123.8 218.2 228.7 228.8 230.3 129.4 129.9 130.5 130.4 ANNUAL 125.2 156.0 124.6 158.7 103.3 126.7 116.0 123.7 226.5 130.0 ---------------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1992 1993 1994 I II III IV 1.3 2.9 5.2 5.1 0.9 4.7 5.5 8.0 -0.4 1.7 0.3 2.7 3.9 4.7 5.7 4.3 1.1 1.5 2.5 0.8 2.6 1.7 0.4 -0.8 -2.6 -4.4 3.5 -10.4 1.2 0.0 1.2 -3.5 14.8 12.8 -10.0 56.4 2.2 1.0 0.2 0.7 ANNUAL 3.0 3.2 0.1 4.6 1.6 1.6 -2.1 0.5 7.6 1.1 I II III IV -1.9 4.5 4.5 4.7 -0.3 7.5 6.0 7.8 1.7 2.8 1.5 3.0 2.3 1.4 2.2 1.4 -0.7 -1.6 0.5 -1.8 4.4 -3.0 -2.1 -3.1 3.6 -3.3 0.0 -3.4 4.2 -3.1 -1.6 -3.2 -14.9 38.9 6.5 41.5 2.3 0.2 -0.8 0.6 ANNUAL 3.0 5.0 2.0 3.0 0.0 0.0 -1.9 -0.5 14.0 0.8 I II III IV 3.3 -1.4 2.0 3.0 5.8 4.8 4.2 8.4 2.5 6.4 2.2 5.2 5.1 -0.1 3.3 2.7 3.0 -2.6 -0.3 0.5 1.8 1.4 1.2 -0.3 6.6 -4.8 3.5 -1.1 3.1 -0.3 1.8 -0.5 -4.9 20.7 0.3 2.5 2.2 1.8 1.7 -0.2 ANNUAL 2.6 6.1 3.4 2.4 -0.1 -0.2 0.2 -0.1 12.2 1.1 ---------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1992 1993 1994 I II III IV 2.4 2.6 3.3 3.6 1.7 2.7 3.5 4.7 -0.7 0.2 0.3 1.1 4.3 4.5 4.9 4.6 1.3 1.4 1.7 1.5 1.8 1.9 1.6 1.0 -1.2 -2.1 -1.5 -3.6 1.0 0.8 0.7 -0.3 5.2 5.0 3.7 16.2 1.3 1.1 0.9 1.1 ANNUAL 3.0 3.2 0.1 4.6 1.6 1.6 -2.1 0.5 7.6 1.1 I II III IV 2.8 3.2 3.0 2.9 4.4 5.1 5.2 5.2 1.6 1.9 2.2 2.2 4.2 3.4 2.6 1.8 1.0 0.3 -0.2 -0.9 1.4 0.2 -0.4 -1.0 -2.1 -1.8 -2.7 -0.8 0.5 -0.3 -1.0 -1.0 7.8 13.6 18.5 15.5 1.1 0.8 0.6 0.6 ANNUAL 3.0 5.0 2.0 3.0 0.0 0.0 -1.9 -0.5 14.0 0.8 I II III IV 4.2 2.7 2.1 1.7 6.8 6.1 5.7 5.8 2.4 3.3 3.5 4.0 2.5 2.2 2.4 2.8 0.0 -0.2 -0.4 0.1 -1.6 -0.5 0.3 1.0 -0.1 -0.5 0.4 1.0 -1.2 -0.5 0.3 1.0 18.8 14.7 13.0 4.2 0.5 0.9 1.6 1.4 ANNUAL 2.6 6.1 3.4 2.4 -0.1 -0.2 0.2 -0.1 12.2 1.1 ---------------------------------------------------------------------------------------------------------See footnotes following table 6. May 9, 1995 r=revised Source: Bureau of Labor Statistics SOURCE: Output data from the Bureau of Economic Analysis, U.S. Department of Commerce, and the Federal Reserve Board. Compensation and hours data from the Bureau of Labor Statistics, U.S. Department of Labor, and the Bureau of Economic Analysis. RELIABILITY: Productivity and cost measures are regularly revised as more complete information becomes available. The measures are first published 30 days after the close of the reference period; revisions appear about 35 days later, and second revisions after an additional 60 days. In the business sector, the probability is 0.95 that the third publication (second revision) of a quarterly index of output per hour of all persons will differ from the initial value by between -2.0 and +2.0 index points. This interval is based on the performance of this measure between the third quarter of 1976 and the fourth quarter of 1992. Footnotes, Tables 1-6 (1) Wages and salaries of employees plus employers' contributions for social insurance and private benefit plans. Except for nonfinancial corporations, where there are no self-employed, data also include an estimate of wages, salaries, and supplemental payments for the selfemployed. (2) Compensation per hour adjusted for changes in the Consumer Price Index for All Urban Consumers. (3) Unit nonlabor payments include profits, capital consumption allowances, interest, rental income of persons, and indirect taxes. (4) Current dollar gross product divided by constant dollar gross product. (5) Quarterly changes: Percent change compounded at annual rate from the original data rather than index numbers. Annual changes: Percent change between annual average levels. (6) Unit nonlabor cost includes capital consumption allowances, interest, rental income of persons, and indirect taxes. For nonfinancial corporations, rental income of persons is zero by definition. (7) Total unit cost is the sum of labor and nonlabor costs. (8) Unit profits include corporate profits with inventory valuation and capital consumption adjustments.
@FedFRASER