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News Bureau of Labor Statistics Historical, technical information: (202) 523-9261 Current data : (202) 523-1221 or 1208 Media contact: (202) 523-1913 United States Department of Labor Washington, D.C. 20212 USDL 88-98 For Release: 10:00 AM EST Thursday, March 3, 1988 PRODUCTIVITY AND COSTS Fourth-Quarter and Annual Averages 1987 Business, Nonfarm Business, and Manufacturing and 1987 Annual Averages for Nonfinancial Corporations The Bureau of Labor Statistics of the U.S. Department of Labor today reported revised productivity data—as measured by output per hour of all persons—for the fourth quarter and year of 1987. Based on more complete information than Was available earlier, the revised productivity changes were: Fourth 1986quarter 1987 Business sector•• -0*2 1.0 Nonfarm business sector 0.3 0.9 Manufacturing 0.2 3.3 Durable goods manufacturing 2.0 3.9 Nondurable goods manufacturing.. -3.1 2.5 • Productivity advanced slowly in the business and nonfarm business sectors when 1987 is compared with 1986, reflecting stronger growth in mid-year and weaker gains in the first and fourth quarters. In manufacturing, productivity growth was more rapid than in the broader sectors, but was nonetheless slower than the preceding year's increase* The revised annual measures are quite similar to preliminary movements published last month. The fourth-quarter revisions mainly reflect upward revisions in output measures (table C ) . Fourth-quarter measures are summarized in table A and appear in detail in tables 1 through 5. Preliminary 1987 annual measures for nonfinancial corporations, announced today, indicate productivity increased 0.4 percent over 1986, (tables B and 6 ) . -2Table A, Productivity and costs: Revised fourth-quarter 1987 measures (Seasonally-adjusted annual rates) Sector Productivity Output Hours Hourly compensation Real hourly compensation Unit labor costs Percent change from preceding quarter Business Nonfarm business Manufacturing Durable Nondurable -0.2 0.3 0.2 2.0 -3.1 5.4 5.6 7.0 9.9 2.1 5.6 5.3 6.8 7.7 5.4 3.1 3.4 2.1 2.2 1.7 -0.5 -0.2 -1.5 -1.4 -1.9 3.3 3.1 1.8 0.1 4.9 Percent change from same quarter a year ago Business Nonfarra business Manufacturing Durable Nondurable 1.6 1.6 3.4 3.8 2.6 4.6 4.7 5.8 6.0 5.5 2.9 3.1 2.4 2.1 2.8 2.9 2.8 1.1 0.7 1.7 -1.5 -1.6 -3.2 -3.5 -2.6 1.3 1.2 -2.2 -3.0 -0.8 FOURTH QUARTER CHANGES 1987 Business Productivity fell at a -0.2 percent annual rate from the third to the fourth quarter of 1987 in the business sector, the only decline of the year. Output rose 5.4 percent, and hours of all persons engaged in the sector increased 5.6 percent (seasonally-adjusted annual rates)* The increase in hours reflected the largest gain in business employment and average weekly hours since 1984. During the third quarter of 1987, productivity had risen 4.7 percent, as output increased 6.3 percent and hours of all persons increased only 1.5 percent (table 1 ) . Hourly compensation increased at a 3.1 percent annual rate during the fourth quarter of 1987, compared with a 3.8 percent gain during the third quarter. 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 3.3 percent annual rate during the fourth quarter, compared with a 0.9 percent decline during the third quarter. -3Real hourly compensation, which takes into account the increase in the Consumer Price Index for 411 Urban Consumers (CPI-UY, declined 0.5 percent in the fourth quarter. Real hourly compensation failed to rise in any quarter of 1987. The implicit price deflator for the husiness sector, which reflects changes in unit labor costs and unit nonlabor payments, increased 1.9 percent in the fourth quarter, compared with a 2.5 percent increase in the third quarter* "Price increases decelerated in the second through fourth quarters of 1987. Nonfarm business Productivity increased 0.3 percent in the fourth quarter in nonfarm businesses. Output rose 5.6 percent and hours of all persons—employees, proprietors, and unpaid family workers—increased 5.3 percent (table 2 ) . As in the more comprehensive business sector, nonfarm employment and average weekly hours posted their best performance since 1984 during the October-December 1987 period. Hourly compensation increased 3.4 percent in the fourth quarter, but was down 0.2 percent when the increase in the CPI-U was taken into accounts Unit labor costs increased 3.1 percent in the fourth quarter. One quarter earlier, these costs declined 0.6 percent. The implicit price deflator for nonfarm business output rose at a 1.9 percent annual rate in the fourth quarter, compared with a 2.7 percent increase one quarter earlier. Manufactaring Productivity increased at a 0.2 percent seasonally-adjusted annual rate in manufacturing in the final quarter of 1987, compared with a 3.7-percent increase during the third quarter. In the fourth quarter, output rose 7.0 percent and hours increased 6.8 percent. Although the productivity gain was the smallest since the fourth quarter of 1981 (when it declined 4.1 percent), increases in output and hours were strong. During the third quarter of 1987, output had risen 7.6 percent, and hours rose 3.8 percent (table 3 ) . Productivity grew in durable goods manufacturing while declining in nondurables manufacturing, but output and hours increased in both subsectors. Output grew much more rapidly among durable goods industries (tables 4 and 5 ) . Hourly compensation of all manufacturing workers increased 2.1 percent during the fourth quarter, but gains were larger in durables. When the increase in consumer prices is taken into account, real hourly compensation declined 1.5 percent, the sixth decline in succession. Unit labor costs increased at a 1.8 percent annual rate, compared with an 2.3 percent decrease during the third quarter of 1987. This was the only quarter during which manufacturing uiit labor costs rose this year. -4- ANNUAL CHANGES, 1986-1987 Nonfinancial corporations The Bureau of Labor Statistics also reported annual productivity and related indexes for nonfinancial corporations for 1987• Productivity rose 0.4 percent in 1987f as output rose 2.7 percent and hours of all employees gained 2.3 percent. Hourly compensation rose 2.1 percent in 1987 (the smallest rise in this series, which begins with 1958) and fell 1.5 percent when the rise in the CPI-U is taken into account (the largest decline since the 2.7 percent drop in 1980). Unit labor costs rose 1*7 percent, unit nonlabor costs rose 2.2 percent, and unit profits were 6.5 percent higher than 1986 levels. Annual changes from 1978 to 1987 are shown in table B. Table B. Annual changes in productivity and related measures, 1978-1987, Measure 1978 1979 1980 Nonfinancial corporations: Productivity 0.6 Output ;.,.. 6.1 Hours..... ..•. 5.5 Hourly compensation.. 8.4 Real hourly comp 0.8 -0.8 2.8 3.7 9.5 -1.6 0.6 -0.7 1.6 -1.8 1.0 -1.0 9.3 10.4 -2.7 -0.9 10.4 9.6 10.2 -7.3 8.2 11.2 18.0 12.9 -9.9 10.7 Unit labor costs..... Unit nonlabor cost... Total unit cost...... Unit profit Implicit price def... 7.8 5.7 7.3 2.0 6.6 1981 1982 1983 1984 1985 1986 1987 0.7 3.2 4.7 1.5 3.6 0.4 2.4 9.1 6.6 3.7 2.1 4.4 2.3 4.2 0.7 1.6 2.6 1.0 3.5 1.6 0.4 2.7 2.3 2.1 -1.5 1.9 2.2 2.0 1.7 2.2 1.9 -3.0 -3.7 7.7 1.5 -0.6 6.9 0.4 1.3 16.4 10.9 8.0 10.7 15.2 -20.0 5.7 11.0 -1.2 -0.4 8.7 0.0 0.8 2.1 2.7 2.2 41.4 23.1 -1.9 -3.4 6.5 2.6 2.8 1.8 1.5 2.3 REVISED MEASURES Revised and previous measures for the fourth quarter of 1987 for the business, nonfarm business, and manufacturing sectors are compared in table C. Productivity performed somewhat better in the fourth quarter than had been reported on February 4, 1988, based on information then available* Annual movements were virtually the same as previously published. All measures of real hourly compensation Incorporate the new seasonal adjustment factors and re-indexed values of the Consumer Price Index for All Urban Consumers announced by the BLS on February 26, 1988. -5Table C» Previous and revised productivity and related measures, fourth quarter and annual averages, 1987 (Seasonally-adjusted annual rates) Productivity Sector Output Hours Hourly compensation Real hourly Unit compen- labor sation costs Percent change, third to fourth quarter 1987 Business: Previous Revised Nonfarm business: Previous Revised Manufacturing: Previous Revised -0.7 -0.2 4.8 5.4 5.6 5.6 3.1 3.1 -0.5 -0.5 3.9 3.3 -0.2 0.3 5.1 5.6 5.3 5.3 3.4 3.4 -0.1 -0.2 3.7 3.1 0.1 0.2 7.0 7.0 6.9 6.8 2.1 2.1 -1.4 -1.5 2.0 1.8 Percent change , 1986 to 1987 Business: Previous Revised Nonfarm business: Previous Revised Manufac turing: Previous Revised 0.9 1.0 3.4 3.4 2.4 2.4 2.9 2.9 -0.7 -0.7 2.0 1.9 0.8 0.9 3.4 3.5 2.6 2.6 2.8 2.8 -0.8 -0.8 2.0 1.9 3.3 3.3 4.3 4.3 1.0 0.9 1.3 1.3 -2.2 -2.2 -1.9 -1.9 NEXT RELEASE DATE The next issue of Productivity and Costs is scheduled for release at 10:00 AM EDT 9 Monday, May 2, 1988, and will contain measures for nonfinanclal corporations, business, nonfarm business, and manufacturing* -6TECHNICAL NOTES Business sector output is equal to gross national product in constant 1982 dollars, less the rest-of-the-world sector, 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 national income accounts. Corresponding exclusions are also made in labor inputs. Business output has accounted for about 77 percent of gross national product in recent years. Total manufacturing measures are computed durable and nondurables goods sectors. by summing series prepared for the The durable sector includes the following 2-digit SIC industries: Primary metals; fabricated metal products; nonelectrical machinery; electrical machinery; transportation equipment; instruments; lumber and lumber products; furniture and fixtures; stone, clay, and glass products; and miscellaneous manufactures. The nondurable sector includes these 2-digit SIC industries: Textile mill products, apparel products, leather and leather products, printing and publishing, chemical and chemical products, petroleum products, rubber and plastic products, food, and tobacco products. Manufacturing output has accounted product in recent years. for about 24 percent of gross national Nonfinancial corporate output is equal to gross national product in constant 1982 dollars, less the rest-of-the-world sector, general government, unincorporated business, output of nonprofit institutions, output of paid employees of private households, rental value of owner-occupied dwellings, the output of corporations engaged in banking, finance, stock and commodity trading, and credit and insurance agencies, and the statistical discrepancy In computing the national income accounts. Nonfinancial corporate output has accounted for about 59 percent of gross national product in recent years. The productivity and associated cost measures in this news release describe the relationship between output in real terms and the labor time involved in it* 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 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; mangerial skill; and the characteristics and effort of the work force. -7Table 1. Business sector: Productivity, hourly compensation, unit labor cost, and prices, seasonally adjusted Year and quarter Output per hour of all persons Output Hours of all persons Compensation per hour(l) Heal compensation per hour(2) Unit labor cost Unit nonlabor pay* mentsO) Implicit price deflator(A) Indexes 1977-100 1936 1987 I II III IV 109.5 109.7 109.6 109.6 127.3 127.5 128.1 129.0 116.3 116.3 116.9 117.8 180.7 182.2 183.6 185.2 100.1 101.3 rlOl.5 rlO1.7 165.0 166.2 167.5 169.0 163.1 163.9 165.7 162.4 164.3 165.4 166.9 166.7 ANNUAL 109.5 128.0 116.9 182.8 rlOl.l 166.9 163.8 165.8 I II III IV 109.7 110.1 111.3 rill.3 130.2 131.1 133.1 r!34.9 118.7 119.1 119.6 121.2 185.8 187.3 189.1 190.5 100.7 100.3 100.3 100.2 169.4 170.2 169.8 rl71.2 166.0 168.6 172.2 rl71.9 168.2 169.6 170.7 rl7l.5 ANNUAL rll0.6 132.3 119.7 188.2 rl00.4 170.2 rl69.7 170.0 I II III IV 5.8 0.6 -0.3 -0.1 6.4 0.7 1.8 3.0 0.5 0.1 2.1 3.1 3.2 3.5 3.0 3*6 1.6 r4.9 r0.6 r0.8 -2.5 2.8 3.3 3.7 7.5 2.1 4.5 -7.7 0.9 2.6 3.7 -0.5 ANNUAL 1.9 3.3 1.4 3*9 2.0 2.0 2.2 2.1 I II III IV 0.5 1.4 4.7 r-0.2 3.5 3.0 6.3 r5.4 3.0 1.6 1.5 5.6 1.4 3.3 3.8 3.1 r-3.8 r-1.5 rO.O -0.5 0.9 1.8 -0.9 r3.3 9.0 6.4 8.8 r-0.5 3.7 3.4 2.5 rl.9 ANNUAL rl.O 3.4 2*4 2.9 -0.7 rl.9 r3.6 2.5 I II III IV 2.8 2.3 1.3 1.5 2.2 2.1 2.4 1.7 Percent change from previous quarter at annual rate(5) 1986 1987 Percent change from corresponding quarter of previous year 1986 1987 4.2 3.4 2.7 2.9 1.3 1.1 1.5 1.4 4.8 4.4 3.7 3.3 1.7 2.7 2.0 r2.0 1.9 2.1 2.4 1.8 2.8 2.2 2.4 1.4 ANNUAL 1.9 3.3 1.4 3.9 2.0 2.0 2.2 2.1 I II III IV 0.2 0.4 1.6 rl.6 2.3 2.8 3.9 rA.6 2.1 2.5 2.3 2.9 2.8 2.8 3.0 2.9 0.6 -1.0 -l.l -1.5 2.7 2.4 1.4 rl*3 1.8 2*8 3.9 r5.8 2.3 2.6 2.3 r2.9 ANNUAL rl.O 3.4 2.4 2.9 -0.7 rl.9 r3.6 2.5 See footnotes following table 6. r-revlsed March 3, 1988 Source: Bureau of Labor Statistics Table 2. Nonfann business sector: Productivity, hourly compensation, unit labor cost, and prices, seasonally adjusted Year and quarter Output per hour of all persons Output Hours of all persons Compensation per hour(l) Real compensation per hour(2) Unit labor cost Unit nonlabor pay-* raentsO) Implicit price deflator(4) Indexes 1977-100 1986 1987 I II lit IV 107.7 107.7 107.5 107.5 126.9 127.1 127.6 128.5 117.9 118.0 118.7 119.6 180.0 181.3 182.6 184.4 r99.8 100.8 100.9 101.2 167.2 168.4 169.8 171.5 164.7 165.2 167.0 163.9 166.4 167.3 168.8 168*8 ANNUAL 107.5 127.5 118.6 182.0 100.6 169.3 165.2 167.8 I II III IV 107.6 108.0 109.1 rlO9.2 129.7 130.7 132.7 rl34.6 120.6 121.1 121.7 123.2 184.9 186.3 187.9 189.5 100.2 99.7 r99.7 99.6 171.8 172.5 172.2 rl73.5 167.4 169.2 173.0 rl72.9 170.3 171.4 172.5 rl73.3 ANNUAL rlO8.5 131.9 121.6 187.1 99.8 rl72.5 rl70.7 r!71.9 Percent change from previous quarter at annual Irate<5> 1986 1987 I II lit IV 6.6 0.1 -0.6 0*0 6.4 0.6 1.7 2.9 -0.2 0.6 2.3 2.9 3.9 2.9 2.8 4.0 2.3 r4.3 r0.5 1.3 -2.6 2*8 3.5 4.0 10.0 1.3 4.2 -7.2 1.6 2.3 3.7 0.0 ANNUAL 1.6 3.2 1.6 3.9 r2.0 2.2 2.4 2.3 I II III IV 0.4 1.4 4.2 rO.3 3.8 3.2 6.3 r5.6 3.4 1.7 2.0 5.3 1.1 3.0 3.6 3.4 r-4.1 -1.8 -0.3 r-0.2 0.8 1.5 -0.6 r3.l 8.8 4.6 9.3 r-O.4 3.4 2.6 2.7 rl.9 ANNUAL r0.9 r3.5 2.6 2.8 -0.8 rl.9 r3.3 2.4 Percent change from corresponding quarter of previous year 1986 1987 I II III IV 2.3 1.9 1.1 1.5 4.0 3.3 2.6 2.9 1.7 1.4 1.6 1.4 4.5 4.1 3.6 3.4 1.4 2.5 1.9 r2.1 2*2 2.2 2.5 1.9 3.2 2.3 2.2 1.9 2.6 2.3 2.4 1.9 ANNUAL 1.6 3.2 1.6 3.9 r2.0 2.2 2.4 2.3 I II III IV -0.1 0.3 1.5 rl.6 2.2 2.9 4.0 r4.7 2.3 2.6 2.5 3.1 2.7 2.7 2.9 2.8 r0.4 r-l.l -1.2 -1.6 2.8 2.4 1.4 rl.2 1.6 2.4 3*6 ,r5.5 2.4 2.4 2.2 r2.6 ANNUAL r0.9 r3.5 2.6 2.8 -0.8 rl.9 r3.3 2.4 See footnotes following table 6. r-revlsed • March 3, 1988 Source: Bureau of Labor Statistics -9Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor cost, seasonally adjusted Year and quarter Output per hour of all persons Output (6) Hours of all persons Compensation per hour(l) Real compensation per hour(2) Unit labor cost Indexes 1977-100 1986 1987 I 11 III IV 127.6 128.4 129.3 129.8 125.2 125.3 126.0 127.1 98.1 97.5 97.5 97.9 181.0 182.1 183.1 184.3 100.3 rlO1.3 101.2 101.2 141.9 141.8 141.7 142.0 ANNUAL 128.8 125.9 97.8 182.7 rlOl.O 141.8 I II III IV 130.8 132.9 134.1 rl34.2 128.4 129.9 132.3 rl34.6 98.1 97.7 98.7 100.3 183.9 184.8 185.4 186.3 99.6 98.9 98.3 r98.0 140.5 139.0 138.2 138.9 ANNUAL 133.0 131.3 98.7 185.1 98.7 139.1 Percent change from previous quarter at annual rate(5) 1986 1987 I JI III IV 4.8 2.6 2.7 1.7 3.5 0.2 2.3 3.7 -1.3 -2.3 -0.4 2.0 1.8 2.5 2.2 2.7 0.2 3.8 r-0.1 r-0.1 -2.8 -0.1 -0.5 0.9 ANNUAL 3.7 2.8 -0.9 3.3 rl.4 -0.4 I II III IV 3.2 6.4 3.7 r0.2 4.0 4.7 7.6 7.0 0.8 -1.6 3.8 r6.8 -1.0 2.0 1.3 2.1 r-6.1 r-2.7 r-2.4 r-1.5 -4.1 -4.2 -2.3 rl.8 ANNUAL 3.3 4.3 r0.9 1.3 -2.2 -1.9 Percent change from corresponding quarter of previous year 1986 1987 ! I II III IV 5.2 3.5 3.2 2.9 3.8 2.5 2.3 2.4 -1.3 -0.9 -0.9 -O.S 4.4 3.4 2.9 2.3 1.3 1.8 1.2 rl.O -0.7 -0.1 -0.3 -0.6 ANNUAL 3.7 2.8 -0.9 3.3 rl.4 -0.4 I II III IV 2.5 3.5 3.7 r3.4 2.5 3.7 5.0 5.8 0.0 0.2 1.2 2.4 1.6 1.5 1.2 1.1 -0.7 -2.3 r-2.9 -3.2 -1.0 -2.0 -2.4 -2.2 ANNUAL 3.3 4.3 r0.9 1.3 -2.2 -1.9 See footnotes following table 6. r*revised March 3, 1988 Source: Bureau of Labor Statistics -10Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor cost, seasonally adjusted Year and quarter Output per hour of all persons Output (6) Hours of all persons Compensation per hour(l) Real compensation per hour(2) Unit labor cost Indexes 1977-100 1986 1987 I II III IV 135.3 136.0 137.5 138.4 133.6 133.2 134.1 135.3 98.8 98.0 97.5 97.8 179.9 180.8 181.6 183.1 99.7 100.5 rl00.4 100.5 133.0 132.9 132.1 132.3 ANNUAL 136.8 134.1 98.0 181.4 rl00.3 132.6 I II III IV 139.9 141.7 143.0 143.7 136.9 137.8 140.1 143.5 97.8 97.2 98.0 99.9 182.2 182.9 183.4 184.4 98.7 r98.0 97.3 r97.0 130.2 129.1 128.3 128.4 ANNUAL 142.1 139.6 98.2 183.3 r97.8 129.0 Percent change from previous quarter at annual rate*(5) 1986 1987 I II III IV 6.7 2.1 4.4 2.6 4.1 -1.1 2.7 3.8 -2.4 -3.2 -1.7 1.1 1.2 1.9 1.7 3.4 -0.4 3.3 r-0.6 0.7 -5.2 -0.2 -2.6 0.8 ANNUAL 5.2 3.2 -1.8 3.4 rl.5 -1.7 I II III IV 4.5 5.3 3.6 2.0 4.5 2.8 7.0 r9.9 0.0 -2.4 3.3 7.7 -1.9 1*6 1.1 2.2 r-6.9 -3.1 r-2.6 -1.4 -6.1 -3.5 -2.4 rO.l ANNUAL 3.9 4.1 0.2 1.1 -2.5 -2.7 Percent change from corresponding quarter of previous year 1986 1987 I II III 7.3 4.9 4.5 5.2 3.0 2.5 -2.0 -1.8 -1.9 4.9 3.6 2:8 1.8 2.0 1.1 -2.2 -1.2 -1.6 IV 4.0 2.4 -1.5 2.1 0.7 -1.8 ANNUAL 5.2 3.2 -1.8 3.4 ri.5 -1.7 I II III IV 3.4 4.2 4.0 3.8 2.4 3.4 4.5 6.0 -0.9 -0.7 0.5 2.1 1.3 1.2 1.0 0.7 r^l.O -2.5 -3.0 -3.5 -2.1 -2.9 -2.8 -3.0 ANNUAL 3.9 4.1 0.2 1.1 -2.5 -2.7 See footnotes following table 6. r-revised March 3, 1988 Source: Bureau of Labor Statistics Tafcl* 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor cost, ll adjusted Year and quarter Output per hour of all persons Output (6) Hours of all persons Compensation per hour(l) Real compensation per hour(2) Unit labor cost Indexes 1977=100 1986 1987 I II III IV 116.0 117.0 117.0 117.1 112.7 113.4 113.9 114.9 97.2 96.9 97.3 98.1 182.7 184.3 185.8 186.5 101.2 rl02.5 102.7 102.4 157.5 157.5 158.8 159.3 ANNUAL 116.8 113.7 97.4 184.8 rlO2.2 158.3 I II III IV 117.4 119.9 121.1 rl20.1 115.8 118.1 120.6 121.2 98.6 98.5 99.6 rl00.9 186.9 188*2 189.0 189.8 rl01.3 rl00.8 rl00.3 99.8 159.1 156.9 156.1 rl58.0 ANNUAL rll9.7 118.9 99.4 rl88.4 100*5 157.5 Percent change from previous quarter at annual rate(5) 1986 1987 I II III IV 1.8 3.6 0.1 0.4 2.3 2.5 1.7 3.6 0.5 -1.0 1.6 3.3 3.2 3.6 3.4 1.5 1.6 5.0 rl.O -1.1 1.4 0.0 3.3 1.2 ANNUAL 1.5 1.9 0.5 3.3 rl.4 1.8 I II III IV 1.1 8.7 3.9 r-3.1 3.1 8.2 8.8 2.1 1.9 -0.5 4.7 r5.4 0.7 2.8 1.7 rl.7 r-4.5 r-1.9 -2.0 r-1.9 -0.5 -5.4 -2.1 r4.9 ANNUAL 2.5 4.6 2.0 2.0 -1.6 -0.5 Percent change from corresponding quarter of previous year 1986 1987 I II III IV 1.8 1.3 1.3 1.4 1.6 1.7 1.8 2.5 -0.2 0.4 0.6 1.1 3.7 3.2 3.3 2.9 0.6 1.6 1.6 1.6 1.9 1.8 2.0 1.5 ANNUAL 1.5 1.9 0.5 3.3 rl.4 1.8 I II III IV 1.3 2.5 3.5 r2.6 2.7 4.1 5.9 5.5 1.4 1.6 2.3 r2.8 2.3 2.1 1.7 rl.7 rO.O r-1.7 -2.4 r-2.6 1.0 -0.4 -1.7 r-0.8 ANNUAL 2.5 4.6 2.0 2.0 -1.6 -0.5 See footnotes following table 6. r-revised March 3, 1988 Source: Bureau of Labor Statistics -12Table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor cost, unit profits, and prices, seasonally adjusted Year and quarter Output per allemployee hour Output Employee Hourly Real hours compensa- hourly compention sation^) (1) Unit labor cost Unit nonlabor cost(7) Total unit cost (8) Unit profits (9) Implicit price deflator (*) Indexes 1977-100 1986 1987 I II III IV 109.8 109.7 109.9 110.5 129.1 128.8 129.3 130.4 117.6 117.4 117.6 118.0 177.2 178.4 179.5 181.0 98.2 r99.2 .99.2 r99.4 161.5 162.6 163.2 163.8 180.7 180.6 184.2 183.2 166.3 167.2 168.5 168.7 129.7 129.5 130.6 127.7 161.9 162.7 164.0 163.8 ANNUAL 109.9 129.4 117.7 178.9 98.9 162.8 182.2 167.7 129.3 163.1 I II III IV 109.7 109.9 110.8 119.3 119.8 120.6 N.A. 180.8 182.0 183.3 N.A. 98.0 r97.5 97.2 N.A. 164.8 165.6 165.5 N.A. 130.9 131.6 133.7 N.A. N.A. 184.1 186.6 187.3 N.A. 169.7 170.9 171.0 N.A. 132.2 132.9 142.1 N.A. 165.2 166.3 167.5 N.A* 110.3 132.9 120.5 182.7 97.5 165.6 186.3 170.8 137.7 166.8 3.0 ANNUAL Percent change from previous quarter at annual rate(5) 1986 1987 I II III IV 3.3 -0.2 0.9 2.1 4.4 -0.9 1.6 3.4 1.0 -0.6 0.7 1.3 3.5 2.6 2.5 3.5 1.8 4.0 rO.l r0.7 0.1 2.9 1.5 1.3 3.0 -0.2 8.2 -2.3 0.9 2.0 3.3 0.3 3.3 -8.5 1.1 1.8 3.3 -0.5 ANNUAL 1.6 2.6 1.0 3.5 1.6 1.9 2.2 2.0 -3.4 1.5 -2.9 0.7 3.3 N.A. 1.5 2.2 6.4 N.A. 4.6 1.6 3.0 N.A.> -0.5 2.6 2.9 N.A. r-5.6 r-2.1 -0.9 N.A. 2.5 2.0 -0.4 N.A. 2.2 5.4 1.5 N.A* 2.4 2.9 0.1 N.A. 14.7 2.1 30.7 N.A . 3.5 2.8 2.8 N .A. 2.7 2.3 2.1 -1.5 1.7 2.2 1.9 6*5 2.3 I II III IV ANNUAL 0.4 Percent: change from corresponding quarter of previous year 1986 1987 I II III IV 2.6 1.8 0.7 1.5 4.1 2.7 1.5 2.1 1.4 0.8 0.8 0.6 4.3 3.9 3.3 3.0 1.2 2.2 1.6 rl.7 1.6 2.0 2.6 1.5 1.8 1.0 3.8 2.1 1.7 1.7 2.9 1.6 -1.7 -2.1 -8.4 -0.8 1.3 1.4 1.7 1.4 ANNUAL 1.6 2.6 1.0 3.5 1.6 1.9 2.2 2.0 -3.4 1.5 0.0 0.2 0.8 N.A* 1.4 2.2 3.4 N.A. 1.5 2.0 2.6 N.A. 2.0 2.0 2.1 N.A. -0,2 -1*7 -2.0 N.A. 2.1 1.8 1.3 N.A* 1.9 3.3 1.7 N.A. 2.0 2.2 1.4 N.A. 1.9 2.6 8.8 N.A . 2.0 2.3 2.1 N .A. 0.4 2.7 2.3 2.1 -1.5 1.7 2.2 1.9 6.5 2.3 I II III IV ANNUAL See footnotes following table ,6. r-revised N.A.=Not Available March 3, 1988 Source: Bureau of'Labor Statistics -13- SOURCE; Output data from 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 30 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 first quarter of 1976 and the second quarter of 1987. Footnotes, Tables 1-6 (1) Wages and salaries of the employees plus employers1 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 self-employed. (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) Quarterly manufacturing output measures are based op. the index of industrial production prepared monthly by the Board of Governors of the Federal Reserve 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, (7) 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. (8) Total unit cost is the sum of labor and nonlabor costs. (9) Unit profits include corporate profits with inventory valuation and capital consumption adjustments. -Ik- BLS Productivity and Cost Measures Measures of productivity change for major sectors of the U.S. economy; • Productivity and cost measures for U.S. business, nonfarm business, and manufacturing every quarter. • Muhifactor productivity and related measures for U.S. private business, private nonfarm business, and manufacturing, annually. How to obtain: Mailing List: To obtain the quarterly news release, asl to be put on a mailing list. Call Bureaif of Labor Statistics, Division of Productivity Research (202) 523-9261. 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: Quarterly productivity and related indexes are available on diskettes. For information, call the Office of Publications, Bureau of Labor Statistics (202) 523-7827. Monthly Labor Review: Occasional articles discuss the full range of BLS productivity findings. Tables present up-to-date measures in every issue. Subscription available from Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402, for SI6 a year; $4.75 single copy. Telephone: For additional information about measures summarized in the news release, call Division of Productivity Research (202)523-9261. * U . S . GOVERNMENT PRINTING OFFICE:1988-202-105:60059
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