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Internet address: Historical, technical information: Current data: Media contact: http://stats.bls.gov/lprhome.htm USDL 98-193 TRANSMISSION OF THIS (202) 606-5606 (202) 606-7828 (202) 606-5902 MATERIAL IS EMBARGOED UNTIL 10:00 A.M. EDT THURSDAY, MAY 7, 1998. PRODUCTIVITY AND COSTS First Quarter 1998 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 1998. The seasonally-adjusted annual rates of productivity change in the first quarter were: 0.8 percent in the business sector and 0.2 percent in the nonfarm business sector. These small productivity gains resulted from strong growth in both output and hours of all persons. Output grew at a 5.3 percent annual rate in both sectors. Hours at work increased 4.4 percent in the business sector and 5.0 percent in the nonfarm business sector. First-quarter measures are summarized in table A and appear in detail in tables 1 through 5. In manufacturing, productivity changes in the first quarter were: 0.5 percent in manufacturing, 0.4 percent in durable goods manufacturing, and 0.6 percent in nondurable goods manufacturing. Productivity growth in manufacturing in the first quarter of 1998 reflected a slower rate of increase in both output (1.8 percent) and hours of all persons (1.3 percent), at seasonally-adjusted annual rates, than in the fourth quarter of 1997. Output and hours in manufacturing, which includes about 18 percent of U.S. business-sector employment, tend to vary more from quarter to quarter than data for the more aggregate business and nonfarm business sectors The data sources and methods used in the preparation of the manufacturing series differ from those used in preparing the business and nonfarm business series, and these measures are not directly comparable. Output measures for business and nonfarm business are based on measures of gross domestic product prepared by the Bureau of Economic Analysis of the U.S. Department of Commerce. Quarterly output measures for manufacturing reflect indexes of industrial production independently prepared by the Board of Governors of the Federal Reserve System. See Technical Notes for further information on data sources. -----------------------------------------------------------------------Table A. Productivity and costs: Preliminary first-quarter 1998 measures (Seasonally adjusted annual rates) -----------------------------------------------------------------------Real Hourly hourly Unit Produccompencompenlabor Sector tivity Output Hours sation sation costs ----------------------------------------------------------------------Percent change from preceding quarter Business 0.8 5.3 4.4 4.2 3.7 3.4 Nonfarm business 0.2 5.3 5.0 4.1 3.5 3.8 Manufacturing 0.5 1.8 1.3 2.8 2.3 2.3 Durable 0.4 2.3 1.9 1.7 1.2 1.3 Nondurable 0.6 1.1 0.4 4.5 4.0 3.9 Percent change from same quarter a year ago Business 2.0 4.4 2.3 4.3 2.8 2.2 Nonfarm business 1.9 4.4 2.5 4.1 2.6 2.2 Manufacturing 4.1 5.2 1.1 3.7 2.2 -0.3 Durable 6.0 7.7 1.6 3.4 1.9 -2.5 Nondurable 1.9 2.3 0.3 4.2 2.7 2.2 ----------------------------------------------------------------------Business From the fourth quarter of 1997 to the first quarter of 1998, business sector productivity increased at a 0.8 percent annual rate. Output and hours advanced 5.3 percent and 4.4 percent, respectively. During the fourth quarter of 1997, output had increased 4.8 percent, and hours of all persons engaged in the sector increased 3.2 percent (seasonally-adjusted annual rates); productivity rose 1.6 percent (table 1). Hourly compensation increased 4.2 percent during the first quarter of 1998. 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 3.4 percent rate during the first quarter. This increase in unit labor costs was less than the 3.9 percent rise in the fourth quarter. Real hourly compensation, which takes into account changes in the Consumer Price Index for All Urban Consumers (CPI-U), rose at a 3.7 percent annual rate in the first quarter. The first-quarter increase in real hourly compensation was the largest recorded since a 5.0 percent rise was posted in the first quarter of 1992. The implicit price deflator for the business sector, which reflects changes in unit labor costs and unit nonlabor payments, rose just 0.3 percent in the first quarter. In the fourth quarter of 1997, the price of business output increased at an annual rate of 0.9 percent. Nonfarm business Productivity edged up 0.2 percent in the nonfarm business sector in the first quarter, as output increased 5.3 percent and hours of all persons went up 5.0 percent. During the fourth quarter of 1997, productivity had risen 1.4 percent in this sector, reflecting gains of 4.9 percent in output and 3.5 percent in hours (table 2). The first-quarter increase in productivity was the smallest since the third quarter of 1996, when output per hour declined 0.7 percent. Hourly compensation increased at a 4.1 percent annual rate in the first quarter. When the rise in the CPI-U was taken into account, real hourly compensation rose 3.5 percent in the first quarter of 1998; it had increased 3.1 percent in the fourth quarter of 1997. Increases in both quarters were larger than at any time since the first quarter of 1992, when real hourly compensation rose 4.8 percent. Unit labor costs rose 3.8 percent in the first quarter, the same as in the previous quarter. The implicit price deflator for nonfarm business output rose 0.7 percent in the first quarter, compared with a 1.0 percent rise one quarter earlier. Manufacturing Productivity increased at a 0.5 percent seasonally-adjusted annual rate in manufacturing in the first quarter of 1998, as output rose 1.8 percent and hours of all persons increased 1.3 percent. This was the slowest growth in manufacturing output per hour since it fell during the second and third quarters of 1993. In contrast, productivity increased at a rate of 4.3 percent in the fourth quarter of 1997, output grew 8.2 percent, and hours grew 3.8 percent (table 3). The durable and nondurable subsectors of manufacturing had similar growth rates in productivity in the first quarter, 0.4 and 0.6 percent, respectively. In durable goods manufacturing, output growth slowed to a 2.3 percent annual rate in the first quarter from 10.3 percent one quarter earlier. Hours worked in durable goods industries rose 1.9 percent in the first quarter of 1998. Nondurable goods manufacturing output rose 1.1 percent in the first quarter, and hours edged up 0.4 percent (tables 4 and 5). Hourly compensation of all manufacturing workers rose 2.8 percent during the first quarter after increasing at a rate of 6.1 percent per year in the fourth quarter of 1997. Real hourly compensation in the manufacturing sector rose 2.3 percent in the first quarter of 1998; it had posted a 4.0 percent gain during the previous quarter. Unit labor costs in manufacturing grew 2.3 percent in the first quarter of 1998, as unit labor costs of durable goods producers rose 1.3 percent, and those of nondurable goods producers grew at a 3.9 percent annual rate. Unit labor costs in total manufacturing recorded their largest increase since the third quarter of 1993, when they rose 3.6 percent. Fourth-quarter and annual measures for nonfinancial corporations Fourth-quarter and annual 1997 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 0.6 percent from the third to the fourth quarter of 1997 as output increased 4.9 percent and employee hours rose 4.3 percent. In the third quarter, productivity had increased 6.3 percent as output jumped 7.8 percent and all-employee hours rose 1.5 percent (seasonally adjusted annual rates). The sector includes all corporations doing business in the United States, except those classified as depository institutions, nondepository institutions, security and commodity brokers, insurance carriers, regulated investment offices, small business investment offices, and real estate investment trusts. --------------------------------------------------------------------------Table B. Nonfinancial corporations: Fourth-quarter 1997 productivity and cost measures (Seasonally adjusted annual rates) --------------------------------------------------------------------------Real Hourly hourly Unit Implicit Produccompencompen- labor Unit price Period tivity Output Hours sation sation costs profits deflator --------------------------------------------------------------------------Percent change from preceding quarter 1997 IV 0.6 4.9 4.3 4.7 2.6 4.1 -11.0 0.4 Percent change from same quarter a year ago 1997 IV 2.7 5.9 3.1 4.0 2.1 1.3 2.2 0.8 --------------------------------------------------------------------------Hourly compensation increased 4.7 percent in the fourth quarter, and real hourly compensation rose 2.6 percent. Unit labor costs increased 4.1 percent in the fourth quarter, the largest increase since the first quarter of 1995 when they rose 5.6 percent. In the third quarter of 1997, unit labor costs had declined 1.9 percent. Total unit costs rose 2.4 during the fourth quarter after having dropped 1.9 percent during the third quarter. In the fourth quarter, unit profits fell 11.0 percent. Unit profits had risen 14.3 percent during the third quarter of 1997. The implicit price deflator for nonfinancial corporate output edged up 0.4 percent in the fourth quarter. Productivity grew 2.6 percent in nonfinancial corporations in calendar year 1997. In 1996, productivity had grown 3.1 percent. Output grew faster in 1997, 5.7 percent, than it had one year earlier, when it grew 4.5 percent. Hours of employees in nonfinancial corporations grew 2.9 percent during 1997, compared with 1.4 percent one year earlier. ---------------------------------------------------------------------Table C. Nonfinancial corporations: Annual changes in productivity and related measures, 1988-1997 ---------------------------------------------------------------------Measure 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 Productivity 1.7 -1.4 0.7 1.5 2.6 1.2 2.1 0.8 3.1 2.6 Output 5.3 1.6 1.0 -1.3 3.0 3.4 6.3 3.7 4.5 5.7 Hours 3.5 3.0 0.3 -2.8 0.4 2.2 4.1 2.9 1.4 2.9 Hourly compensation 4.0 2.5 5.2 4.6 4.6 2.1 1.8 2.3 3.5 3.8 Real hourly -0.2 -2.2 -0.2 0.3 1.5 -0.9 -0.8 -0.5 0.6 1.5 compensation Unit labor costs 2.3 3.9 4.4 3.0 2.0 0.9 -0.3 1.5 0.4 1.1 Unit nonlabor costs 2.5 7.3 3.0 3.9 -2.9 -0.6 0.3 -0.2 -1.2 -1.7 Total unit cost 2.3 4.8 4.0 3.2 0.7 0.5 -0.2 1.1 0.0 0.4 Unit profits 8.1 -7.4 -1.5 -0.8 6.5 13.3 18.7 4.7 10.0 3.5 Implicit price 2.9 3.5 3.5 2.9 1.2 1.7 1.8 1.5 1.2 0.8 deflator ---------------------------------------------------------------------The 1997 increase in hourly compensation was 3.8 percent, about the same as the 3.5 percent increase in 1996. Real hourly compensation rose 1.5 percent in 1997. It had increased 0.6 percent in 1996, after having fallen in the three previous years. Total unit costs rose 0.4 percent in 1997, reflecting an increase of 1.1 percent in unit labor costs and a 1.7 percent drop in unit nonlabor costs. Unit profits for the year rose 3.5 percent; in 1996, they had posted a 10.0 percent gain. REVISED MEASURES Current and previous measures for the fourth quarter of 1997 for the business, nonfarm business, and manufacturing sectors are compared in table D. Some of the quarterly movements differ slightly from those reported on March 10, based on information then available. --------------------------------------------------------------------Table D. Previous and revised productivity and related measures Quarterly percent change at seasonally adjusted annual rate --------------------------------------------------------------------Real Hourly hourly Unit Produccompen- compenlabor Sector tivity Output Hours sation sation costs --------------------------------------------------------------------Fourth quarter 1997 Business: Previous 1.8 5.0 3.2 5.5 3.4 3.7 Current 1.6 4.8 3.2 5.6 3.4 3.9 Nonfarm business: Previous 1.6 5.1 3.5 5.2 3.1 3.5 Current 1.4 4.9 3.5 5.2 3.1 3.8 Manufacturing: Previous 4.3 8.2 3.8 6.1 3.9 1.8 Current 4.3 8.2 3.8 6.1 4.0 1.8 --------------------------------------------------------------------Bureau of Labor Statistics measures of output for the manufacturing sectors have been revised back to 1949. These revisions reflect revised price deflators estimated by the Bureau of Economic Analysis of the U.S. Department of Commerce. The revisions also reflect revised shipments data from the Bureau of the Census of the Commerce Department for the years 1988 to 1992. Appendix tables 1 to 3 show the annual indexes of productivity and costs for the total, durable, and nondurable manufacturing sectors, respectively, for the years 1949-1997. The measures of manufacturing output used in the production of quarterly labor productivity and costs measures presented in this release are consistent with annual manufacturing output data released May 6, 1998, in "Multifactor Productivity Trends, 1995 and 1996" (USDL 98-187). Next release date The next release of Productivity and Costs is scheduled for 10:00 AM EDT, Thursday, June 4, 1998. First-quarter measures for nonfinancial corporations and revised measures for business, nonfarm business, and manufacturing will be released at that time. TECHNICAL NOTES Labor Hours: 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 paid hours of production and nonsupervisory workers in nonagricultural establishments. Jobs rather than persons are counted. Weekly paid hours are adjusted to hours at work 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 (BEA) of the Department of Commerce and the CPS are used to measure labor input for government enterprises, proprietors, and unpaid family workers. Output: Business sector output is an annual-weighted index constructed after excluding from gross domestic product (GDP) the following outputs: General government, nonprofit institutions, paid employees of private households, and the rental value of owner-occupied dwellings. Corresponding exclusions also are made in labor inputs. Business output accounted for about 76 percent of the value of GDP in 1992. Nonfarm business, which also excludes farming, accounted for about 75 percent of GDP in 1992. Annual manufacturing indexes are constructed by deflating current-dollar industry value of production data from the U.S. Bureau of the Census with deflators from the BEA. These deflators are based on data from the BLS producer price program and other sources. The industry shipments are aggregated using annual weights, and intrasector transactions are removed. 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 to be consistent with annual indexes of manufacturing sector output prepared by BLS. 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, and leather and leather products. Nonfinancial corporate output is an annual-weighted index constructed by excluding from GDP the following outputs: General government; nonprofit institutions; employees of private households; the rental value of owner-occupied dwellings; unincorporated business; and those corporations which are depository institutions, nondepository institutions, security and commodity brokers, insurance carriers, regulated investment offices, small business investment offices, and real estate investment trusts. Nonfinancial corporations accounted for about 52 percent of the value 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, 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: 1-800-326-2577. 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 1992=100 1996 1997 I II III IV 102.0 102.8 102.6 103.1 111.4 113.2 113.5 115.0 109.2 110.1 110.6 111.5 109.3 110.8 111.8 112.7 98.9 99.3 99.6 99.6 107.2 107.8 108.9 109.3 110.5 111.0 110.7 111.3 108.4 108.9 109.6 110.0 ANNUAL 102.6 113.3 110.4 111.1 99.3 108.3 110.9 109.2 I II III IV 103.5 104.1 105.0 r105.4 116.6 117.8 118.8 r120.2 112.7 113.1 113.1 114.0 113.8 114.7 115.9 117.5 100.1 100.5 101.1 101.9 110.0 110.2 110.4 r111.5 111.6 112.4 112.9 r111.6 110.6 111.0 111.3 111.5 ANNUAL 104.5 r118.3 113.3 115.4 100.9 110.5 r112.1 111.1 1998 I 105.6 121.7 115.3 118.7 102.8 112.4 110.2 111.6 --------------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1996 1997 I II III IV 3.1 3.1 -0.7 2.0 2.8 6.6 0.9 5.4 -0.3 3.4 1.6 3.3 3.7 5.5 3.6 3.4 0.6 1.7 1.2 0.0 0.7 2.3 4.4 1.4 5.1 1.8 -1.1 2.2 2.3 2.1 2.4 1.7 ANNUAL 2.0 3.5 1.4 3.9 0.9 1.8 2.0 1.9 I II III IV 1.6 2.2 3.5 r1.6 5.9 3.9 3.6 r4.8 4.2 1.6 0.1 3.2 4.1 3.1 4.2 r5.6 1.9 1.8 2.2 3.4 2.5 0.9 0.7 r3.9 1.2 2.7 1.8 r-4.3 2.0 1.5 1.1 0.9 ANNUAL r1.8 4.5 2.6 3.9 1.6 2.0 r1.1 1.7 1998 I 0.8 5.3 4.4 4.2 3.7 3.4 -4.9 0.3 --------------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1996 1997 I II III IV 1.9 2.5 2.0 1.8 2.5 4.2 3.3 3.9 0.6 1.7 1.3 2.0 3.5 4.0 4.2 4.0 0.7 1.1 1.2 0.9 1.5 1.5 2.1 2.2 2.0 2.4 1.8 2.0 1.7 1.8 2.0 2.1 ANNUAL 2.0 3.5 1.4 3.9 0.9 1.8 2.0 1.9 I II III IV 1.5 1.3 2.3 r2.2 4.7 4.0 4.7 r4.5 3.1 2.7 2.3 2.3 4.1 3.6 3.7 r4.3 1.2 1.2 1.5 2.3 2.6 2.3 1.3 r2.0 1.0 1.2 2.0 r0.3 2.0 1.9 1.6 1.4 ANNUAL r1.8 4.5 2.6 3.9 1.6 2.0 r1.1 1.7 1998 I 2.0 4.4 2.3 4.3 2.8 2.2 -1.2 1.0 --------------------------------------------------------------------------------------------------------See footnotes following Table 6. May 7, 1998 r=revised Source: Bureau of Labor Statistics Table 2. Nonfarm business sector: and prices, seasonally adjusted Productivity, hourly compensation, unit labor costs, 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 1992=100 1996 1997 I II III IV 102.1 102.8 102.6 103.1 111.7 113.5 113.8 115.3 109.4 110.4 110.9 111.9 109.1 110.5 111.4 112.3 98.7 99.1 99.3 99.3 106.9 107.5 108.6 109.0 111.0 111.3 110.9 111.4 108.4 108.8 109.4 109.8 ANNUAL 102.6 113.6 110.7 110.8 99.1 108.0 111.2 109.1 I II III IV 103.4 104.0 104.9 105.3 116.9 118.0 119.1 r120.5 113.1 113.5 113.5 114.5 113.5 114.4 115.5 117.0 99.8 100.2 100.7 101.4 109.8 110.0 110.1 r111.1 111.7 112.4 113.2 r112.1 110.5 110.9 111.2 111.5 ANNUAL 104.3 r118.6 113.7 115.0 100.6 r110.3 r112.3 111.0 1998 I 105.3 122.1 115.9 118.1 102.3 112.2 110.7 111.7 --------------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1996 1997 I II III IV 2.8 2.9 -0.7 1.9 2.6 6.8 1.0 5.4 -0.3 3.8 1.7 3.5 3.9 5.1 3.3 3.4 0.7 1.3 0.8 0.0 1.0 2.2 4.0 1.5 4.6 0.9 -1.4 2.0 2.3 1.7 2.0 1.7 ANNUAL 1.9 3.5 1.6 3.8 0.8 1.9 1.4 1.7 I II III IV 1.1 2.3 3.6 r1.4 5.6 3.8 3.7 r4.9 4.5 1.5 0.1 3.5 4.3 3.2 3.8 5.2 2.0 1.8 1.8 3.1 3.1 0.9 0.2 r3.8 1.1 2.3 2.9 r-3.9 2.4 1.4 1.2 1.0 ANNUAL 1.7 4.5 2.7 3.8 1.5 2.1 1.1 1.7 1998 I 0.2 5.3 5.0 4.1 3.5 3.8 -4.7 0.7 --------------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1996 1997 I II III IV 1.8 2.3 1.8 1.7 2.6 4.2 3.3 3.9 0.7 1.8 1.5 2.2 3.5 3.9 4.0 3.9 0.6 1.0 1.0 0.7 1.6 1.6 2.1 2.2 1.3 1.5 1.0 1.5 1.5 1.6 1.7 1.9 ANNUAL 1.9 3.5 1.6 3.8 0.8 1.9 1.4 1.7 I II III IV 1.3 1.1 2.2 2.1 4.7 4.0 4.7 r4.5 3.4 2.8 2.4 2.4 4.0 3.5 3.7 4.1 1.1 1.2 1.4 2.2 2.7 2.4 1.4 r2.0 0.6 1.0 2.1 r0.6 1.9 1.9 1.7 1.5 ANNUAL 1.7 4.5 2.7 3.8 1.5 2.1 1.1 1.7 1998 I 1.9 4.4 2.5 4.1 2.6 2.2 -0.9 1.1 --------------------------------------------------------------------------------------------------------See footnotes following Table 6. May 7, 1998 r=revised Source: Bureau of Labor Statistics Table 3. Manufacturing sector: seasonally adjusted Productivity, hourly compensation, and unit labor costs, 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 1992=100 1996 1997 I II III IV r112.7 r114.1 r115.8 r116.9 r115.8 r118.3 r119.9 r121.2 102.7 103.7 103.6 103.7 110.8 112.0 112.9 113.5 100.2 100.4 100.6 100.3 r98.3 r98.2 r97.5 r97.1 ANNUAL r114.7 r118.8 103.6 112.1 100.3 r97.8 I II III IV r117.8 r118.9 r121.2 r122.5 r123.0 r124.5 r126.4 r128.9 104.4 104.7 104.3 105.2 114.7 115.4 116.4 118.1 100.8 101.1 101.5 102.5 r97.3 r97.1 r96.0 r96.5 ANNUAL r120.0 r125.7 104.7 116.1 101.5 r96.7 1998 I 122.6 129.4 105.6 119.0 103.1 97.0 -------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1996 1997 I II III IV r5.5 r5.0 r5.9 r3.9 r2.6 r9.0 r5.4 r4.5 -2.7 3.8 -0.4 0.6 2.4 4.7 3.1 1.9 -0.7 0.9 0.7 -1.4 r-2.9 r-0.4 r-2.6 r-1.9 ANNUAL r4.7 r4.2 -0.5 3.2 0.2 r-1.4 I II III IV 3.3 3.8 8.0 4.3 6.2 4.9 6.1 8.2 2.8 1.1 -1.7 3.8 4.4 2.6 3.4 6.1 2.2 1.3 1.5 r4.0 1.0 -1.1 -4.2 1.8 ANNUAL r4.6 r5.8 1.1 3.5 1.2 r-1.1 1998 I 0.5 1.8 1.3 2.8 2.3 2.3 -------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1996 1997 I II III IV r4.7 r4.6 r4.8 r5.1 r2.2 r4.3 r4.7 r5.4 -2.4 -0.3 0.0 0.3 3.3 3.5 3.4 3.0 0.5 0.7 0.4 -0.1 r-1.3 r-1.0 r-1.4 r-1.9 ANNUAL r4.7 r4.2 -0.5 3.2 0.2 r-1.4 I II III IV r4.5 r4.2 4.7 4.8 r6.3 r5.3 r5.4 6.3 1.7 1.0 0.7 1.4 3.5 3.0 3.1 4.1 0.6 0.7 0.9 2.2 r-1.0 r-1.1 r-1.6 r-0.6 ANNUAL r4.6 r5.8 1.1 3.5 1.2 r-1.1 1998 I 4.1 5.2 1.1 3.7 2.2 -0.3 -------------------------------------------------------------------------------------------------See footnotes following Table 6. May 7, 1998 r=revised Source: Bureau of Labor Statistics Table 4. Durable manufacturing sector: seasonally adjusted Productivity, hourly compensation, and unit labor costs, 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 1992=100 1996 1997 I II III IV r119.9 r122.1 r124.2 r125.3 r126.8 r131.1 r133.2 r134.6 105.7 107.3 107.3 107.5 109.7 111.0 111.7 111.8 99.2 99.5 99.5 98.8 r91.5 r90.9 r89.9 r89.3 ANNUAL r122.7 r131.4 107.1 110.9 99.1 r90.4 I II III IV r126.5 r128.5 r131.9 r134.0 r137.7 r140.4 r143.8 r147.4 108.8 109.3 109.1 110.0 113.1 113.7 114.4 116.5 99.4 99.6 99.7 101.0 r89.4 r88.5 r86.7 r86.9 ANNUAL r130.1 r142.3 109.4 114.3 99.9 r87.9 1998 I 134.1 148.3 110.5 117.0 101.3 87.2 -------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1996 1997 I II III IV r8.1 r7.5 r6.9 r3.5 r5.9 r14.2 r6.8 r4.3 -2.1 6.2 -0.1 0.7 1.4 4.7 2.6 0.5 -1.7 0.9 0.2 -2.8 r-6.2 r-2.6 r-4.0 r-2.9 ANNUAL r6.3 r7.1 0.8 2.4 -0.5 r-3.7 I II III IV 4.1 6.2 11.0 r6.7 9.4 8.1 10.2 r10.3 5.1 1.8 -0.8 3.4 4.8 2.1 2.4 r7.6 2.5 0.7 0.4 r5.4 0.6 -3.9 -7.8 r0.9 ANNUAL r6.0 r8.3 2.2 3.1 0.8 r-2.8 1998 I 0.4 2.3 1.9 1.7 1.2 1.3 -------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1996 1997 I II III IV r6.0 r6.7 r6.7 r6.5 r4.8 r8.0 r8.0 r7.7 -1.1 1.3 1.2 1.1 2.4 2.9 2.7 2.3 -0.3 0.0 -0.3 -0.8 r-3.3 r-3.6 r-3.8 r-3.9 ANNUAL r6.3 r7.1 0.8 2.4 -0.5 r-3.7 I II III IV r5.5 r5.2 r6.2 r7.0 r8.6 r7.1 r8.0 r9.5 2.9 1.9 1.7 2.4 3.1 2.5 2.4 4.2 0.2 0.1 0.2 2.2 r-2.2 r-2.6 r-3.6 -2.6 ANNUAL r6.0 r8.3 2.2 3.1 0.8 r-2.8 1998 I 6.0 7.7 1.6 3.4 1.9 -2.5 -------------------------------------------------------------------------------------------------See footnotes following Table 6. May 7, 1998 r=revised Source: Bureau of Labor Statistics Table 5. Nondurable manufacturing sector: seasonally adjusted Productivity, hourly compensation, and unit labor costs, 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 1992=100 1996 1997 I II III IV r105.8 r106.5 r107.7 r108.9 r104.5 r105.3 r106.3 r107.5 98.8 98.9 98.6 98.7 111.8 112.9 114.1 115.3 101.1 101.2 101.6 101.9 r105.7 r106.1 r105.9 r105.9 ANNUAL r107.1 r105.9 98.9 113.4 101.4 r105.9 I II III IV r109.7 r110.0 r111.3 r111.6 r108.2 r108.5 r108.9 r110.3 98.6 98.6 97.8 98.8 116.2 117.2 118.7 119.8 102.2 102.7 103.4 103.9 r106.0 r106.6 r106.6 r107.3 ANNUAL r110.6 r109.0 98.5 117.9 103.0 r106.6 1998 I 111.8 110.6 98.9 121.1 104.9 108.3 -------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1996 1997 I II III IV 2.5 2.6 4.8 4.3 -1.2 3.1 3.8 4.6 -3.6 0.4 -0.9 0.3 4.0 4.1 4.0 4.3 0.8 0.4 1.5 1.0 1.4 1.5 -0.7 0.1 ANNUAL 2.8 r0.6 -2.2 4.1 1.1 1.3 I II III IV 3.0 1.1 4.8 r1.2 2.5 1.2 1.5 r5.5 -0.5 0.1 -3.1 4.2 3.3 3.4 5.0 r3.8 1.1 2.0 3.0 1.7 0.3 2.3 0.2 r2.6 ANNUAL 3.2 2.9 -0.3 4.0 1.6 0.7 1998 I 0.6 1.1 0.4 4.5 4.0 3.9 -------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1996 1997 I II III IV r3.2 r2.4 2.7 3.5 r-1.0 r-0.1 0.8 2.5 -4.1 -2.5 -1.8 -1.0 4.5 4.3 4.2 4.1 1.6 1.4 1.2 0.9 r1.2 1.9 1.5 0.5 ANNUAL 2.8 r0.6 -2.2 4.1 1.1 1.3 I II III IV 3.7 3.3 3.3 r2.5 3.5 3.0 2.4 r2.6 -0.2 -0.3 -0.8 0.1 3.9 3.8 4.0 3.9 1.0 1.4 1.8 2.0 0.3 0.5 0.7 1.3 ANNUAL 3.2 2.9 -0.3 4.0 1.6 0.7 1998 I 1.9 2.3 0.3 4.2 2.7 2.2 -------------------------------------------------------------------------------------------------See footnotes following Table 6. May 7, 1998 r=revised Source: Bureau of Labor Statistics Table 6. Nonfinancial corporations: and prices, seasonally adjusted Productivity, hourly compensation, unit labor costs, unit profits, Output Hourly Real Unit Total Unit Implicit Year per allcompenhourly Unit nonunit proprice and employee Employee sation compenlabor labor costs fits deflator quarter hour Output hours (1) sation(2) costs costs(6) (7) (8) (4) ---------------------------------------------------------------------------------------------------------Indexes 1992=100 1995 1996 1997 I II III IV 102.9 103.4 104.7 105.4 112.3 112.9 114.9 115.9 109.2 109.2 109.7 110.0 105.1 105.9 106.6 107.5 97.7 97.6 97.8 98.0 102.2 102.4 101.9 102.0 99.8 100.1 99.0 99.1 101.6 101.8 101.1 101.2 135.2 134.9 145.5 147.3 104.6 104.8 105.1 105.4 ANNUAL 104.1 114.0 109.5 106.3 97.9 102.1 99.5 101.4 140.8 105.0 I II III IV 106.0 107.1 107.8 108.3 116.5 118.7 120.0 121.5 109.9 110.8 111.3 112.1 108.3 109.7 110.7 111.5 98.0 98.3 98.6 98.6 102.1 102.4 102.7 102.9 99.2 98.4 98.1 97.4 101.4 101.4 101.5 101.5 152.5 154.7 156.0 156.4 106.0 106.2 106.4 106.5 ANNUAL 107.3 119.2 111.0 110.1 98.4 102.6 98.3 101.4 154.9 106.3 I II III IV 108.8 109.4 111.1 111.3 123.3 124.7 127.1 128.6 113.3 114.0 114.4 115.6 112.6 113.5 114.7 116.0 99.0 99.4 100.0 100.6 103.5 103.7 103.2 104.3 97.0 97.1 96.6 95.9 101.8 102.0 101.5 102.1 157.9 159.1 164.5 159.8 106.9 107.2 107.2 107.3 ANNUAL 110.2 125.9 114.3 114.2 99.9 103.7 96.6 101.9 160.3 107.2 ---------------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1995 1996 1997 I II III IV -3.3 2.0 5.2 2.8 0.0 2.0 7.2 3.8 3.4 0.0 1.9 1.0 2.1 3.0 2.9 3.3 -0.5 -0.3 0.7 0.8 5.6 1.0 -2.2 0.4 2.8 1.0 -4.2 0.4 4.9 1.0 -2.7 0.4 -18.1 -0.8 35.4 4.9 1.8 0.8 1.3 1.0 ANNUAL 0.8 3.7 2.9 2.3 -0.5 1.5 -0.2 1.1 4.7 1.5 I II III IV 2.4 4.1 2.7 2.1 2.0 7.6 4.3 5.2 -0.3 3.4 1.6 3.1 3.1 5.1 3.8 3.0 -0.1 1.4 1.4 -0.3 0.7 1.1 1.1 0.9 0.6 -3.1 -1.4 -2.8 0.7 0.0 0.5 0.0 15.0 5.8 3.5 1.0 2.4 0.7 0.9 0.1 ANNUAL 3.1 4.5 1.4 3.5 0.6 0.4 -1.2 0.0 10.0 1.2 I II III IV 1.7 2.4 6.3 0.6 6.1 4.7 7.8 4.9 4.3 2.3 1.5 4.3 4.0 3.2 4.3 4.7 1.8 1.8 2.3 2.6 2.3 0.8 -1.9 4.1 -1.8 0.5 -1.9 -2.9 1.3 0.7 -1.9 2.4 3.8 3.2 14.3 -11.0 1.6 1.1 0.2 0.4 ANNUAL 2.6 5.7 2.9 3.8 1.5 1.1 -1.7 0.4 3.5 0.8 ---------------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1995 1996 1997 I II III IV -0.7 0.3 1.5 1.6 3.9 3.5 4.3 3.2 4.7 3.1 2.7 1.6 1.4 2.1 2.5 2.8 -1.4 -0.9 -0.1 0.2 2.2 1.8 1.0 1.2 -1.7 1.3 -0.5 0.0 1.2 1.7 0.6 0.9 6.6 1.9 6.7 3.6 1.8 1.7 1.3 1.2 ANNUAL 0.8 3.7 2.9 2.3 -0.5 1.5 -0.2 1.1 4.7 1.5 I II III IV 3.1 3.6 3.0 2.8 3.7 5.1 4.4 4.8 0.6 1.5 1.4 1.9 3.1 3.6 3.8 3.8 0.3 0.7 0.9 0.6 0.0 0.0 0.8 1.0 -0.6 -1.6 -0.9 -1.7 -0.2 -0.4 0.4 0.3 12.8 14.6 7.2 6.2 1.4 1.3 1.2 1.0 ANNUAL 3.1 4.5 1.4 3.5 0.6 0.4 -1.2 0.0 10.0 1.2 I II III IV 2.6 2.2 3.1 2.7 5.8 5.1 5.9 5.9 3.1 2.8 2.8 3.1 4.0 3.5 3.6 4.0 1.0 1.2 1.4 2.1 1.3 1.3 0.5 1.3 -2.3 -1.4 -1.5 -1.5 0.4 0.6 0.0 0.6 3.5 2.9 5.5 2.2 0.8 0.9 0.7 0.8 ANNUAL 2.6 5.7 2.9 3.8 1.5 1.1 -1.7 0.4 3.5 0.8 ---------------------------------------------------------------------------------------------------------See footnotes following Table 6. May 7, 1998 r=revised Source: Bureau of Labor Statistics Appendix table 1. Manufacturing sector: Indexes 1992=100 Productivity, hourly compensation, and unit labor costs, Real Output per Hours CompensacompensaUnit hour of of all tion per tion per labor Year all persons Output persons hour (1) hour (2) costs ----------------------------------------------------------------------------------------------1949 33.2 26.3 79.2 8.3 48.8 24.9 1950 1951 1952 1953 1954 33.8 33.4 34.7 35.8 36.7 28.9 30.8 32.4 35.2 32.9 85.6 92.2 93.4 98.2 89.7 8.7 9.6 10.2 10.8 11.3 50.6 51.7 54.0 56.6 58.7 25.8 28.6 29.4 30.1 30.7 1955 1956 1957 1958 1959 38.3 38.1 38.9 39.4 40.2 36.3 36.6 36.8 34.2 37.2 94.7 96.1 94.6 86.7 92.6 11.7 12.4 13.2 13.8 14.3 61.2 64.2 65.8 67.0 69.0 30.5 32.7 33.9 35.0 35.6 1960 1961 1962 1963 1964 40.9 42.2 43.3 45.1 47.0 37.7 37.9 40.5 42.6 45.4 92.2 89.8 93.5 94.5 96.5 14.9 15.3 15.9 16.4 17.1 70.6 72.0 74.0 75.2 77.3 36.5 36.4 36.8 36.4 36.4 1965 1966 1967 1968 1969 48.0 48.5 50.5 52.3 53.0 49.0 52.8 54.6 57.3 58.8 102.1 108.7 108.1 109.7 111.0 17.5 18.2 19.2 20.7 22.2 77.7 79.0 80.8 83.4 85.0 36.4 37.6 38.1 39.6 41.9 1970 1971 1972 1973 1974 54.7 58.3 60.5 62.1 62.8 57.1 58.6 63.6 68.7 67.9 104.5 100.6 105.2 110.5 108.1 23.8 25.3 26.6 28.6 31.8 86.1 87.5 89.2 90.5 90.5 43.5 43.4 44.0 46.1 50.6 1975 1976 1977 1978 1979 64.7 67.3 69.7 70.5 70.1 63.0 68.7 74.0 78.0 79.1 97.3 102.0 106.2 110.7 112.8 35.6 38.6 42.0 45.4 49.8 93.0 95.2 97.2 97.6 96.2 55.1 57.4 60.3 64.4 71.1 1980 1981 1982 1983 1984 70.4 71.4 75.2 77.9 80.2 75.8 76.4 73.7 77.1 84.5 107.6 107.1 98.0 99.0 105.4 55.8 61.3 67.2 69.0 71.4 94.9 94.6 97.7 97.2 96.4 79.2 85.9 89.4 88.7 89.0 1985 1986 1987 1988 1989 83.2 86.9 89.2 90.7 90.8 87.1 89.6 92.7 96.9 97.4 104.7 103.1 103.9 106.8 107.2 75.3 78.6 80.8 84.0 86.8 98.1 100.6 99.8 99.6 98.2 90.5 90.5 90.6 92.6 95.5 1990 1991 1992 1993 1994 93.0 94.9 100.0 102.0 105.2 97.5 95.4 100.0 103.4 109.1 104.9 100.6 100.0 101.4 103.8 91.0 95.7 100.0 102.9 105.6 97.6 98.6 100.0 99.9 100.0 97.8 100.9 100.0 100.9 100.4 1995 109.6 114.1 104.1 108.7 100.1 99.2 1996 114.7 118.8 103.6 112.1 100.3 97.8 1997 120.0 125.7 104.7 116.1 101.5 96.7 ----------------------------------------------------------------------------------------------See footnotes following Table 6. May 7, 1998 Source: Bureau of Labor Statistics Appendix table 2. Durable manufacturing sector: and unit labor costs, Indexes 1992=100 Productivity, hourly compensation, Real Output per Hours CompensacompensaUnit hour of of all tion per tion per labor Year all persons Output persons hour (1) hour (2) costs ----------------------------------------------------------------------------------------------1949 31.5 22.7 72.1 8.1 47.8 25.7 1950 1951 1952 1953 1954 33.4 32.0 33.5 35.4 35.4 26.8 29.0 31.2 35.5 31.4 80.4 90.7 93.0 100.1 88.5 8.5 9.5 10.2 10.7 11.2 49.7 51.0 53.8 56.3 58.5 25.6 29.6 30.3 30.2 31.6 1955 1956 1957 1958 1959 37.4 35.7 36.2 35.8 36.9 35.3 34.5 34.5 30.2 33.8 94.6 96.8 95.5 84.4 91.6 11.7 12.5 13.2 13.9 14.4 61.3 64.2 65.9 67.7 69.6 31.4 34.9 36.5 38.9 39.2 1960 1961 1962 1963 1964 37.0 38.0 39.6 41.7 43.4 33.8 33.4 36.8 39.4 42.2 91.4 87.9 92.8 94.5 97.2 15.0 15.5 16.1 16.5 17.2 71.2 72.5 74.7 75.8 77.8 40.6 40.6 40.6 39.6 39.6 1965 1966 1967 1968 1969 45.2 46.0 47.6 49.3 49.8 47.1 52.1 53.5 56.2 57.7 104.3 113.3 112.5 114.1 115.8 17.5 18.3 19.2 20.7 22.2 78.0 79.1 80.7 83.4 84.9 38.7 39.7 40.4 42.0 44.6 1970 1971 1972 1973 1974 50.6 54.5 57.5 60.1 59.9 54.0 55.2 61.6 69.3 67.9 106.7 101.2 107.1 115.4 113.4 23.9 25.5 26.8 28.7 31.8 86.3 88.2 89.9 90.7 90.5 47.1 46.7 46.6 47.8 53.1 1975 1976 1977 1978 1979 60.8 63.3 65.3 66.1 66.1 60.7 66.1 72.0 77.2 79.5 99.8 104.4 110.2 116.7 120.3 35.9 39.0 42.4 45.5 49.9 93.7 96.2 98.1 97.9 96.4 59.1 61.6 64.9 68.8 75.5 1980 1981 1982 1983 1984 65.9 66.8 69.3 73.5 77.5 74.6 75.1 69.8 74.4 85.5 113.2 112.4 100.7 101.3 110.4 56.1 61.7 67.8 69.3 71.3 95.6 95.3 98.5 97.6 96.2 85.2 92.5 97.8 94.3 92.0 1985 1986 1987 1988 1989 80.1 84.3 87.1 89.3 89.8 88.4 90.6 93.4 99.3 99.8 110.3 107.5 107.2 111.2 111.1 74.9 78.7 81.0 83.7 86.5 97.7 100.7 100.1 99.3 97.9 93.6 93.3 93.0 93.8 96.3 1990 1991 1992 1993 1994 92.0 93.5 100.0 104.6 109.5 98.8 94.9 100.0 106.1 114.9 107.4 101.4 100.0 101.5 105.0 90.5 95.5 100.0 103.1 105.5 97.2 98.3 100.0 100.1 99.9 98.5 102.1 100.0 98.6 96.3 1995 115.4 122.7 106.3 108.2 99.7 93.8 1996 122.7 131.4 107.1 110.9 99.1 90.4 1997 130.1 142.3 109.4 114.3 99.9 87.9 ----------------------------------------------------------------------------------------------See footnotes following Table 6. May 7, 1998 Source: Bureau of Labor Statistics Appendix table 3. Nondurable manufacturing sector: and unit labor costs, Indexes 1992=100 Productivity, hourly compensation, Real Output per Hours CompensacompensaUnit hour of of all tion per tion per labor Year all persons Output persons hour (1) hour (2) costs ----------------------------------------------------------------------------------------------1949 33.8 30.0 88.6 8.6 50.9 25.5 1950 1951 1952 1953 1954 34.1 35.0 36.0 36.7 38.2 31.5 32.9 33.8 35.1 34.9 92.5 94.1 93.9 95.6 91.3 9.0 9.8 10.3 10.8 11.3 52.5 52.8 54.4 56.7 59.2 26.5 27.9 28.5 29.4 29.7 1955 1956 1957 1958 1959 39.8 41.3 42.5 43.8 45.0 37.7 39.3 39.6 39.3 42.3 94.8 95.1 93.2 89.9 93.9 11.7 12.4 13.1 13.7 14.1 61.1 64.0 65.5 66.3 68.1 29.3 30.0 30.9 31.2 31.4 1960 1961 1962 1963 1964 46.2 47.5 48.3 50.1 52.2 43.1 43.9 45.6 47.4 49.9 93.3 92.4 94.4 94.5 95.6 14.7 15.2 15.7 16.2 16.9 69.9 71.5 73.1 74.4 76.5 31.9 32.0 32.5 32.4 32.4 1965 1966 1967 1968 1969 52.5 53.1 55.5 57.6 58.9 52.1 54.5 56.8 59.8 61.7 99.2 102.7 102.3 103.9 104.7 17.3 18.0 19.1 20.5 22.0 77.0 78.1 80.2 82.7 84.2 32.9 34.0 34.4 35.6 37.4 1970 1971 1972 1973 1974 61.3 64.0 66.1 67.0 68.8 62.2 63.9 67.8 69.7 69.4 101.5 99.9 102.6 104.0 100.9 23.6 24.9 26.1 28.2 31.5 85.4 86.3 87.8 89.1 89.5 38.6 38.9 39.6 42.1 45.7 1975 1976 1977 1978 1979 70.9 73.5 76.9 78.2 77.6 66.6 72.6 77.6 80.2 79.9 94.0 98.7 101.0 102.6 102.9 35.0 37.8 41.0 44.5 48.8 91.2 93.1 94.9 95.8 94.4 49.3 51.4 53.3 57.0 62.9 1980 1981 1982 1983 1984 77.8 78.7 82.7 83.8 85.0 78.0 78.7 78.1 80.4 84.1 100.2 99.9 94.4 96.0 98.9 54.4 59.7 65.8 68.2 70.8 92.7 92.2 95.7 96.1 95.7 69.9 75.9 79.6 81.5 83.3 1985 1986 1987 1988 1989 88.4 90.9 92.7 93.5 92.9 85.9 88.5 92.2 94.5 94.7 97.2 97.4 99.5 101.0 102.0 74.8 77.8 79.9 83.7 86.5 97.6 99.6 98.7 99.2 97.9 84.7 85.5 86.2 89.5 93.2 1990 1991 1992 1993 1994 94.6 96.1 100.0 99.7 101.3 96.0 95.5 100.0 100.9 103.5 101.5 99.4 100.0 101.2 102.2 91.1 95.9 100.0 102.6 105.5 97.8 98.8 100.0 99.6 99.9 96.3 99.8 100.0 102.9 104.2 1995 104.2 105.3 101.1 108.9 100.3 104.6 1996 107.1 105.9 98.9 113.4 101.4 105.9 1997 110.6 109.0 98.5 117.9 103.0 106.6 ----------------------------------------------------------------------------------------------See footnotes following Table 6. May 7, 1998 Source: Bureau of Labor Statistics SOURCES: Output data are from the Bureau of Economic Analysis and the Census Bureau of the U.S. Department of Commerce; the Bureau of Labor Statistics, U.S. Department of Labor; and the Federal Reserve Board. Compensation and hours data are from the Bureau of Labor Statistics 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 30 days later, and second revisions after an additional 60 days. 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 output divided by the output index. (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 costs include 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 costs are the sum of unit labor and nonlabor costs. (8) Unit profits include corporate profits with inventory valuation and capital consumption adjustments.
@FedFRASER