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News
Bureau of Labor Statistics
United States
Department
of Labor
Washington, D.C. 20212
Historical, technical
information: (202) 523-9261
Current data : (202) 523-1221 or 1208
Media contact: (202) 523-1913
USDL 89-57
For Release 10:00 AM EST
Monday, February 6, 1989
PRODUCTIVITY AND COSTS
Fourth Quarter
and Annual Averages, 1988
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 fourth quarter and the year of 1988. Based on information now
available, productivity changes in annual rates were:
Fourth Annual averages
quarter
1987 - 1988
Business sector
-2.0
1.0
Nonfarm business sector
0.0
1.4
Manufacturing
0.9
3.2
Durable goods manufacturing
0.1
3.3
Nondurable goods manufacturing.. 2.2
2.9
Productivity advanced moderately in 1988 in the business and nonfarm
business sectors.
The gains in 1988 were larger than those of 1987. In
manufacturing, productivity growth was more rapid than in the broader sectors, but
smaller than the preceding year's increase.
Fourth-quarter measures are summarized in table A and appear in detail in
tables 1 through 5. Annual changes in productivity and related measures appear in
tables B and C.
THIRD-TO-FOURTH QUARTER CHANGES, 1988
Business
Productivity fell at a 2.0 percent annual rate during the fourth quarter of
1988 in the business sector, in contrast with the 1.7 percent gain during the
third quarter. The business sector measure is the most comprehensive indicator
of productivity change.
The decline in the fourth quarter reflects a drop in
farm productivity, which does not affect the nonfarm business or manufacturing
measures.
Output in the business sector rose 2.1 percent, and hours of all
persons engaged in the sector increased 4.1 percent (seasonally adjusted annual
rates). During the third quarter of 1988, output increased 2.8 percent and hours
of all persons increased 1.1 percent (table 1).
- 2 -
Table A. Productivity and costs: Preliminary fourth quarter 1938 measures
(Seasonally adjusted annual rates)
Sector
Productivity
Output
Hours
Hourly
compensation
Real
hourly
compensation
Unit
labor
costs
0.3
1.2
1.0
1.4
0.1
6.8
5.6
4.4
5.7
2.2
0.5
0.4
0.3
0.4
0.0
4.9
4.0
1.3
1.7
0.7
Percent change from preceding quarter
-2.0
Business
Nonfarm business 0.0
Manufacturing
0.9
0.1
Durable
Nondurable
2.2
2.1
3.6
4.9
4.7
5.1
4.1
3.5
3.9
4.6
2.8
4.7
5.6
5.4
5.8
4.4
Percent change from same quarter a year ago
Business
-0.1
Nonfarm business 0.7
Manufacturing
3.2
3.0
Durable
Nondurable
3.6
3.2
4.2
5.6
5.9
5.1
3.3
3.4
2.3
2.8
1.5
4.8
4.8
4.6
4.8
4.3
Hourly compensation increased at a 4.7 percent annual rate during the
fourth quarter of 1988, compared with a 6.2 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 6.8
percent annual rate during the fourth quarter, compared with a 4.4 percent
increase during the third quarter.
Real hourly compensation, which takes into account the increase in the
Consumer Price Index for All Urban Consumers (CPI-U), increased 0.3 percent
in the fourth quarter.
The implicit price deflator for the business sector, which reflects
changes in unit labor costs and unit nonlabor payments, increased 4.7
percent in the fourth quarter, matching the third-quarter rise.
Nonfarm business
Productivity was
quarter. Output and
hours of all persons
increased 3.5 percent
advanced 2.0 percent.
unchanged in
payroll hours
-- employees,
(table 2).
the nonfarm business sector in the fourth
grew, however; output rose 3.6 percent and
proprietors, and unpaid family workers -During the third quarter, productivity had
- 3 -
Hourly compensation increased 5.6 percent in the fourth quarter, compared
with a 5.7 percent gain during the preceding quarter. When the increase in the
CPI-U is taken into account, real hourly compensation rose 1.2 percent. Unit
labor costs increased 5.6 percent in the fourth quarter.
During the third
quarter, unit labor costs rose only 3.7 percent with a similar gain in hourly
compensation. This reflects the impact of the productivity gain in the third
quarter.
The imp!icit price deflator for nonfarm business output rose 5.5 percent in
the fourth quarter, compared with a 4.1 percent increase in the third quarter.
Manufacturing
Total manufacturing productivity showed little movement as largely
offsetting changes occurred in durables and nondurabies.
Output per hour
(productivity) increased at a 0.9 percent seasonally-adjusted annual rate in the
final quarter of 1988, compared with a 5.2 percent increase during the third
-quarter. Output rose 4.9 percent in the fourth quarter and hours of all persons
increased 3.9 percent.
Although the productivity gain was the smallest since
1982 (when a 0.8 percent increase occurred in the fourth quarter), the increase
in hours was the largest quarterly gain in 1988.
During the thi rd quarter of
1988, output rose 7.1 percent and hours increased 1.8 percent (table 3).
Productivity grew little in durables while increasing more rapidly in
nondurables, but output and hours increased in both subsectors. (Nearly half
again as many jobs are in durable as nondurable goods industries.) Output grew
more rapidly in the nondurable goods industries (tables 4 and 5).
Hourly compensation of all manufacturing workers increased 5.4 percent
during the fourth quarter.
When the increase in consumer prices is taken
into account, real hourly compensation rose 1.0 percent.
Unit labor costs
increased at a 4.4 percent annual rate, compared with a 0.5 percent decrease
during the third quarter of 1988.
The fourth-quarter rise in unit labor costs
was the largest since 1982 (when a 9.7 percent increase occurred in the first
quarter.)
ANNUAL AVERAGE CHANGES, 1987-1988
Business
Business productivity for 1988 was 1.0 percent higher than in 1987, as
output advanced 4.5 percent and hours of all persons rose 3.4 percent (table B).
During 1987, productivity rose 0.8 percent.
Productivity, output, and
employment have increased in every year since the recession year of 1982.
Hourly compensation increased 4.8 percent in 1988, compared with a 4.0 percent
gain during 1987.
Unit labor costs increased 3.7 percent during 1988 and 3.1
percent in 1987; the 1988 increase was the largest since the 8.3 percent rise
of 1982.
Table B. Productivity and costs: 1988 annual measures
Productivity
Sector
Output
Hours
Hourly
compensation
Real
hourly
compensation
Unit
labor
costs
Percent change in annual averages, 1987 - 1988
Business
Nonfann business
Manufacturing
Durable
Nondurable
1.0
1.4
3.2
3.3
2.9
4.5
5.1
6.1
6.6
5.3
3.4
3.6
2.8
3.2
2.3
4.8
4.7
3.5
3.5
3.5
0.7
0.5
-0.6
-0.6
-0.6
3.7
3.2
0.4
0.2
0.6
Real hourly compensation increased 0.7 percent in 1988, compared with a 0.3
percent rise in 1987.
The implicit price deflator for the business sector
increased 3.0 percent in 1988, up from the 2.8 percent gain of 1987.
Annual changes in productivity and related measures for the 1979-1988
decade are shown in table C. These measures were computed by comparing annual
average values for adjacent years.
Nonfann business
Productivity increased 1.4 percent in the nonfarm business sector during
1988.
Output rose 5.1 percent and hours of all persons increased 3.6 percent
(table 2). Employment rose 3.7 percent (3.3 million jobs) in 1988 and increased
22.1 percent (16.8 million jobs) from the recession low of the fourth quarter of
1982 to the fourth quarter of 1988.
Hourly compensation increased 4.7 percent in 1988, compared with a 3.8
percent increase in 1987.
Real hourly compensation rose 0.5 percent, compared
with a 0.2 percent increase in 1987.
There has been little change in real
hourly compensation in the last decade.
Unit labor costs increased 3.2 percent in 1988, the largest rise in these
costs since 1982 (when they rose 8.4 percent). The implicit price deflator for
the nonfarm business sector rose 2.7 percent in 1988, compared with a 2.8
percent rise in 1987.
Manufacturing
Productivity increased 3.2 percent in manufacturing in 1988, compared
with a 3.4 percent increase during 1987.
Productivity gains in manufacturing
have been substantially larger recently than in the more comprehensive business
sector (of which it is a part, accounting for about one-quarter of business
hours).
- 5 -
Table C.
Annual changes in productivity and related measures, 1979-1988
Measure
1979
1980 1981 1982 1983 1984 1985 1986 1987 1988
Business:
Productivity
-1.2 -0.3
1.4 0.4
2.0 -1.1
3.1
2.1
Output
Hours
3.2 -0.8
0 7 -2.8
9.7 10.5
Hourly comp
9.2 7.8
Real hourly comp... -1.5 -2.7 -1 0 1.6
7.7 8.3
Unit labor costs... 11.1 10.9
Implicit price def. 9.0 9.0 9.6 5.9
2.7 2.5
4.2 8.4
1.5 5.7
4.2 4.1
0.9 -0.2
1.4
1.5
3.3 3.3
2.1
4.2
2.1
4.5
0.9
2.4
2.5
2.2
3.5
1.3
4.3
2.4
2.1
2.3
0.8
3.6
2.8
4.0
0.3
3.1
2.8
1.0
4.5
3.4
4.8
0.7
3.7
3.0
Nonfarm business:
Productivity
-1.6
Output
1.9
3.5
Hours
Hourly comp
9.5
Real hourly comp... -1.7
Unit labor costs... 11.2
Implicit price def. 8.9
-0.4
-1.2
-0.7
10.5
-2.7
11.0
9.7
3.3 2.1
5.0 8.3
1.6 6.0
4.3 3.9
1.1 -0.4
1.0 1.8
3.5 3.0
1.4
3.9
2.5
4.2
0.6
2.8
3.0
2.0
3.5
1.5
4.2
2.3
2.2
2.4
0.8
3.8
3.0
3.8
0.2
3.1
2.8
1.4
5.1
3.6
4.7
0.5
3.2
2.7
Manufacturing:
Productivity
-0 .1
2.0
Output
2a
Hours
9
Hourly comp
.7
Real hourly comp... -1 .5
Unit labor costs*.. 9.7
Implicit price def. 6.2
3.3 3.4 3.2
0.0 2.2 2.2
5.8 5.5 4.6
3.8 2.3 4.3 6.1
6.4 12.2
1.6 -6.1
-4.5
-4.5 -0.6 -8.1
0.6 6.4 -0.8 -1,0
0 9 2.8
3.4
5.0 3.7 2.1
3.1
9.6 8.5
11.6
3.5
1.4 1.9 -1.5 -0.6
-1.7 -0.6
2.2 -0.1 -0.8
0.4
0.3 0.5 -1.2
7.3 6.2 -2.5 -1.9
11.7
8.4 8.9 5.1
1.6 -0.2 n.a.
0.7 -1.5
1.1
1.0
1.7
0.7
9.4
-0.8
8.3
9.7
-0.6
-3.3
-2.7
7.8
1.5
8.4
6.3
n.a. - Not available.
Output rose 6.1 percent and hours of all persons increased 2.8 percent
(table 3). Employment grew 2.6 percent (507,000 jobs) in 1988. Since 1982,
employment has grown 8.7 percent (1.6 million jobs). Productivity grew in both
durables and nondurables in 1988, but hours increased faster in durables. Output
also grew more rapidly in durable goods industries (tables 4 and 5).
Hourly compensation of all manufacturing workers increased 3.5 percent
during 1988. When the increase in consumer prices is taken into account, real
hourly compensation fell 0.6 percent, the second consecutive annual drop. Unit
labor costs rose 0.4 percent in 1988, compared with a 1.2 percent drop during
1987.
REVISED THIRD QUARTER 1988 MEASURES
The Bureau of Labor Statistics also reported cfvpjpf measures for the
third quarter of 1^88 for nonfinancial corporations ^tabFe D). Productivity
declined less in the third quarter than had been reported on December 5, 1988,
based on information then available.
- 6-
Table 0. Previously published and current measures for nonfinancial
corporations, third quarter 1988
Percent change from previous quarter
(Seasonally-adjusted annual rates)
Item
Previous
Current
Real
Hourly hourly Unit
Implicit
Produccompen- compen- labor Unit
price
tivity Output Hours sation sation costs profits deflator
-1.1
-0.8
2.1
2.5
3.3
3.3
0.7
0.8
5.4
5.5
6.6
6.4
-9.1
-8.9
4.8
4.8
Previous and revised productivity and cost measures for the third quarter
are compared in table E for the business, nonfarm business, and manufacturing
sectors. The changes mainly reflect revisions in the underlying output measures
•since December.
Table E. Previously published and current productivity and related measures,
third quarter 1988
Percent change from previous quarter
(Seasonally-adjusted annual rates)
Sector
Business:
Previous
Current
Nonfarm business:
Previous
Current
Manufacturing:
Previous
Current
Productivity
Hourly
compensation
Real
hourly Unit
compen- labor
sation costs
Output
Hours
1.5
1.7
2.6
2.8
1.1
1.1
6.1
6.2
1.3
1.4
4.5
4.4
1.9
2.0
3.4
3.5
1.5
1.5
5.6
5.7
0.8
0.9
3.7
3.7
5.2
5.2
7.2
7.1
1.8
1,8
4.7
4.8
0.0
0.0
-0.5
-0.5
NEXT RELEASE DATE
The next issue of Productivity and Costs is scheduled for release at 10:00 AM
EST, Tuesday, March 7, 1989, and will contain measures for nonfinancial corporations, business, nonfarm business, and manufacturing.
- 7 -
TECHNICAL 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 accounted for 80 percent of gross national product in
1987. The nonfarm business sector, which also excludes farming, accounted for
about 78 percent of gross national product in 1987.
Total manufacturing measures are computed by summing series prepared for
the durable and nondurables goods sectors.
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 accounted for about 22 percent of gross national
product in 1987.
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 accounted for about
59 percent of gross national product in 1987.
The productivity and associated cost measures in this news release des-cribe
the relationship between output in real terms 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
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 s k i l l ; and the characteristics and effort
of the work force.
-8-
Table 1. Business sector: Productivity, hourly compensation, .unit labor cost, and prices, seasonally adjusted
Yt?ar and
quarter
Output per
hour
of a l l persons
Output
Hours
of all
persons
Cornpensation per
hour(l)
Real
compensation per
hour(2)
Unit
labor
cost
U n i t nonlabor payments^)
Impl icit
price
deflator{4)
Indexes 1977=100
in
IV
109.9
110.6
111.7
111.8
130.5
132.2
134.3
. 136.2
118.8
119.5
120.3
121.8
187.3
189.0
191.1
194.0
101,5
101.2
101.4
102.0
170.5
170.8
171.1
173.5
165.6
168.7
171.5
168.9
168.7
170.1
171.2
171.9
ANNUAL
111.0
133.3
120.1
190.4
101.5
171.5
168.7
170.5
I
II
III
IV
112.8
111.8
rl!2.3
111.8
138.0
138.8
r!39.8
140.5
122.3
124.1
124.5
125.7
195.8
198.1
r201.1
203.4
102.1
102.1
102.4
102.5
173.5
177.1
T179.0
182.0
170.0
170.4
r!72.7
173.0
172.3
174.7
r!76.8
178.8
ANNUAL
112.1
139.3
124.2
199.5
102.2
177.9
171.5
175.7
1W
I
II
1^88
Percent change from previous quarter at annual rate(5)
I
II
III
IV
0.3
2.7
3.9
0.6
3.7
5.3
6.6
5.7
3.4
2.5
2.6
5.1
2.S
3.6
4.6
6.2
-2.8
-1.2
0.8
2.4
2.2
0.8
0.7
5.6
4.6
7.9
6.7
-5.8
3.0
3.2
2.8
1.4
ANNUAL
0.8
3.6
2.8
4.0
0.3
3;i
2.3
2.8
I
II
III
IV
3.5
-3.4
rl.7
-2.0
5.5
2.4
r2.8
2.1
1.9
6.0
1.1
4.1
3.7
4.8
r6.2
4.7
0.3
0.0
rl.4
0.3
0.2
8.5
r4.4
6.8
2.5
1.0
r5.3
0.8
1.0
5.8
r4.7
4.7
ANNUAL
1.0
4.5
3.4
4.8
0.7
3.7
1.7
3.0
1937
1988
Percent change from corresponding quarter of previous year
I
II
III
IV
-0.6
0.2
1.5
1.9
U6
3.1
4.5
5.3
2.2
2.9
3.0
3.4
3.8
3.8
3.9
4.2
1.5
0.0
-0.3
-0.2
4.4
3.6
2.3
2.3
0.7
2.1
2.9
3.2
3.1
3.1
2.5
2.6
ANNUAL
0.8
3.6
2.8
4.0
0.3
3.1
2.3
2.8
I
II
III
IV
2.7
1.1
rO.6
-0.1
5.8
5.0
r4.1
3.2
3.0
3.9
3.5
3.3
4.5
4.8
5.2
4.8
0.5
0.9
1.0
0.5
1.8
3.7
r4.6
4.9
2.7
1.0
rO.7
2.4
2.1
2.7
3.2
4.0
ANNUAL
1.0
4.5
3.4
4.8
0.7
3.7
U7
3.0
1987
1988
See footnotes following table 6.
r=revised
February 6, 1989
Source: Bureau of Labor Statistics
rrotiuctlvity, 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 payments(3)
Implicit
price
deflator(4)
Indexes 1977=100
1987
1988
I
II
III
IV
107.8
108,6
109.6
109.9
130.1
131.9
134.1
136.0
120.7
121.5
122.3
123.8
186.4
187.9
190.0
192.9
101.0
100.6
100.8
101.4
172.9
173.0
173.3
175.6
167.2
169.8
173.0
170.9
170.9
171.9
173.2
174.0
ANNUAL
109.0
133.0
122.1
189.4
101.0
173.8
170.2
172.5
I
II
III
IV
110.8
110.1
rllO.7
110.7
137.9
139.2
r!40.5
141.7
124.4
126.4
126.9
128.0
194.6
196.6
199.4
202.1
101.5
10.1.3
rlOl.6
101.9
175.7
178.6
180.2
182.6
171.6
171.8
r!73.9
176.2
174,2
176.2
r!78,0
180.4
ANNUAL
110.5
139.8
126.5
198.2
101.5
179.3
173.4
177.2
5.7
6.5
7.7
-4.8
'3.3
2.3
3,1
1.8
Percent change from previous quarter at annual rate(5)
1987
1988
I
II
III
IV
0.0
3.2
3.7
0.9
4.0
5.7
6.8
5.9
4.0
2.5
2.9
4.9
2.1
3.4
4.5
6.4
-3.2
0.6
2.6
2.1
0.2
0.7
5.4
ANNUAL
0.8
3.8
3.0
3.8
0.2
3.1
2.3
2.8
I
II
HI
IV
3.4
-2.4
r2.0
0.0
5.6
4.0
r3.5
3.6
2.1
6.6
1.5
3.5
3.5
4.2
r5.7
5.6
0.1
rO.9
1.2
0.1
6.8
3.7
5.6
1.6
0.7
r4.8
5.4
0.6
4.7
r4.1
5.5
ANNUAL
1.4
5,1
3.6
4.7
0.5
3.2
1.9
2.7
-1.4
-O.b
Percent change from corresponding quarter of previous year
1987
1988
1.4
I
II
III
IV
-0.8
0.2
1.5
1.9
1.6
3.2
4.7
5.6
2.4
3.0
3.2
3.6
3.7
3.7
3.7
4.1
-0.1
-0.4
-0.4
4.5
3.5
2.2
2.1
0.6
1.9
2.9
3.6
3.1
3.0
2.5
2.6
ANNUAL
0.8
3.8
3.0
3.8
0.2
3.1
2.3
2.8
I
II
III
IV
ANNUAL
2.8
1.4
rl.O
0.7
1.4
6.0
5.6
4.7
4.2
5.1
3.1
4.1
3.8
3.4
3.6
4.4
4.6
r5.0
4.8
4.7
0.5
0.7
0.8
0.4
0.5
1.6
3.2
4.0
4.0
3.2
2.6
1.2
rO.5
3.1
1.9
1.9
2.5
r2.8
3.7
2.7
See footnotes following table 6.
r=revised
February 6, 1989
Source: Bureau of Labor Statistics
-10-
Table 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
130.0
131.7
132.8
133.2
127.2
128.7
131.1
133.5
97.8
97.7
98.8
100.2
185.9
186.3
187.2
188.2
100.8
99.7
99.3
99.0
143.1
141.4
141.0
141.3
132.0
130.1
98.6
186.9
99.7
141.7
I
II
III
IV
134.3
135.5
137.2
137.5
135.0
136.9
139.3
141.0
100.6
101.1
101.5
102.5
190.7
192.1
194.4
196.9
99.4
99.0
99.0
99.3
142.1
141.8
141.6
143.2
ANNUAL
136.1
138,1
101.4
193.6
99.1
142.2
I
II
III
IV
1987
ANNUAL
1988
Percent change from previous quarter at annual rate(5)
I
II
III
IV
3.6
5.5
3.2
1.3
4.1
4.9
7.8
7.5
0.5
-0.6
4.4
6.1
1.4
0.7
2.1
2.1
-3.8
-4.0
-1.7
-1.5.
-2.1
-4.6
-1.1
0.8
ANNUAL
3.4
4.3
0.9
2.1
-1.5
-1.2
I
II
III
IV
3.2
3.7
5.2
0.9
4.6
5.8
r7.1
4.9
1.3
2.0
1.8
3.9
5.4
3.0
r4.8
5.4
2.0
-1.7
0.0
1.0
2.2
-0.7
-0.5
4.4
ANNUAL
3.2
6.1
2.8
3.5
-0.6
0.4
1987
1988
Percent change from corresponding quarter of previous year
I
II
III
IV
2.7
3.6
3.7
3.4
2.4
3.7
5.1
6.0
-0.3
0.1
1.4
2.6
2.7
2.3
2.0
1.6
0.4
-1.4
-2.1
-2.7
0.0
-1.2
-1.7
-1.8
ANNUAL
3.4
4.3
0.9
2.1
-1.5
-1.2
I
II
III
IV
3.3
2.8
3.3
3.2
6.2
6.4
6.2
5.6
2.8
3.4
2.8
2.3
2.6
3.2
3.8
4.6
-1.3
-0.7
-0.3
0.3
-0.7
0.3
rO.5
1.3
ANNUAL
3.2
6.1
2.8
3.5
-0.6
1987
1988
See footnotes following table 6.
r=revised
0.4-
February 6, 1989
Source: Bureau of Labor Statistics
-11Table 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
1987
I
II
III
IV
ANNUAL
1988
I
II
III
IV
ANNUAL
136.6
138.1
139.1
140.0
133.3
134.2
136.5
139.9
97.6
97.2
98.2
99.9
184.9
184.4
185.3
186.2
100.2
98.8
98.3
97.9
135.3
133.5
133.2
133.0
138.5
136.0
98.2
185.2
98.8
133.7
141.3
142.7
144,2
144.2
141.3
144.0
146.4
148.1
100.0
100.9
rlOl.5
102.7
189.5
190.1
192.3
195.1
98.8
98.0
98.0
98.3
134.1
133.3
133.4
135.3
143.1
144.9
101.3
191.8
98.2
134.0
Percent change from previous quarter at annual rate{5)
1987
1988
I
II
III
IV
4,7
4.4
2.9
2.6
4.5
2.8
7.0
10.2
-0.2
-1.5
4.0
7.3
1.3
-1.0
2.0
1.9
-3.9
-5.6
-1.7
-1.7
-3.2
-5.1
-0.9
-0.7
ANNUAL
3.8
4.0
0.2
1.8
-1.8
-1.9
I
11
III
IV
3.8
3.8
4.3
0.1
4.3
7.7
r6.8
4.7
0.4
3.8
r2.4
4.6
7.1
1.4
4.7
5.8
3.6
-3.2
0.0
1.4
3.2
-2.3
rO.5
5.7
ANNUAL
3.3
6.6
3.2
3.5
-0.6
0.2
Percent change from corresponding quarter of previous year
1987
1988
I
II
III
IV
3.3
4.1
3.8
3.7
2.1
3.3
4.5
6.1
-1.2
-0.8
0.6
2.3
2.6
2.0
1.7
1.1
0.3
-1.7
-2.4
-3.2
-0.8
-2.0
-2.1
-2.5
ANNUAL
3.8
4.0
0.2
1.8
-1.8
-1.9
I
II
III
IV
3.4
3.3
3.6
3.0
6.0
7.3
7.2
5.9
2.5
3.8
r3.4
2.8
2.5
3.1
3.8
4.8
-1.4
-0.8
r-0.3
0.4
-0.9
-0.2
0.1
1.7
ANNUAL
3.3
6.6
3.2
3.5
-0.6
0.2
See footnotes following table 6.
r=revised
February 6, 1989
Source: Bureau of Labor Statistics
-12Table 5. Nondurable 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
xompensation per
hour(2)
Unit
labor
cost
Indexes 1977=100
1987
1988
120.1
122.4
123.5
123.2
118.0
120.5
123.1
124.0
98.2
98.4
99.7
100.7
188.0
189.7
190.8
191.9
101.9
101.6
101.2
100.9
156.4
155.0
154.5
155.8
ANNUAL
122.3
121.4
99.3
190.1
101.4
155.4
I
II
III
IV
123.9
124.8
126.9
127.6
125.6
126.4
128.8
130.4
101.4
101.3
101.5
102.2
193.2
195.7
197.9
200.1
100.8
100.9
100.8
100.8
156.0
156.8
156.0
156.8
ANNUAL
125.8
127.8
101.6
196.8
100.8
156.4
I
II
III
IV
Percent change from previous quarter at annual rate(5)
1987
1988
I
II
HI
IV
1.9
7.6
3.8
-1.1
3.4
8,5
9.0
3.1
1.5
0.8
5.1
4.2
1.6
3.8
2.4
2.2
-3.6
-1.0
-1.4
-1.4
-0.2
-3.6
-1.3
3.4
ANNUAL
2.8
4.9
2.0
2.8
-0.8
0.0
I
II
III
IV
2.3
3.2
r6.8
2.2
5.1
2.7
r7.7
5.1
2.7
-0.5
0.9
2.8
2.9
5.2
4.6
4.4
-0.5
0.4
ANNUAL
2.9
5.3
2.3
3.5
-0.6
0.6
-n.i
0.1
0.6
2.0
r-2.0
2.2
Percent change from corresponding quarter of previous year
1987
1988
I
II
III
IV
1.8
2.9
3.6
3,0
2.9
4.4
6.2
6.0
1.1
1.5
2.5
2.9
3.2
3.1
2.6
2.5
0.9
-0.7
-1.5
-1.9
1.4
0.2
-1.0
-0.5
ANNUAL
2.8
4.9
2.0
2.8
-0.8
0.0
I
II
III
IV
3.1
2*0
2.7
3.6
6.4
4.9
4.6
5.1
3.2
2.9
1.8
1.5
2.8
3.2
3.7
4.3
-1.1
-0.7
-0.4
0.0
-0.3
1.1
1.0
0.7
ANNUAL
2.9
5.3
2.3
3.5
-0.6
0.6
See footnotes following table 6.
r=revised
February 6, 1989
Source: Bureau of Labor Statistics
-13Table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor cost, unit profits,
and prices, seasonally adjusted
Year
and
quarter
Output
per aliemployee
hour
Output
Employee Hourly
Real
hours compensa- hourly
tion
compen(I)
sation(2)
Unit
labor
cost
Unit
nonlabor
cost(7)
Total
unit
cost
(8)
Unit
profits
(9)
Implicit
price
deflator
(4)
Indexes 1977=100
1987
1988
I
II
III
IV
110.1
110.9
112.2
112.2
131.3
133.3
136.1
137.7
119.3
120.2
121.3
122.8
182.9
184.3
186.1
188.5
99.1
98.7
98.7
99.1
166.2
166.1
165.9
168.1
180.8
182.6
183.0
183.6
169.9
170.3
170.2
172.0
128.5
129.8
136.4
128.3
164.9
165.4
166.1
166.7
ANNUAL
111.3
134.6
120.9
185.5
98.9
166.6
182.5
170.6
130.8
165.8
1
II
III
113.3
112.9
rl!2.7
140.1
141.2
r!42.0
123.6
125.0
126.1
189.9
191.9
r!94.5
99.0
98.9
r99.1
167.5
170.0
r!72.6
183.4
185.1
r!87.8
171.5
173.8
176.4
132.5
132.6
r!29.6
166.9
168.8
170.8
Percent change from orevious quarter at annual rate(5)
1987
1988
I
II
III
IV
-1.0
3.1
4.7
-0.1
2.9
6.1
8.8
4.7
4.0
2.9
4.0
4.8
1.6
2.9
4.1
5.2
-3.6
-1.8
0.3
1.5
2.6
-0.2
-0.6
5.3
2.5
4.1
0.8
1.3
2.6
1.0
-0.2
4.2
-3.5
3.9
21.9
-21.5
2.0
1.2
1.7
1.5
ANNUAL
1.5
4.3
2.7
3.4
-0.3
1.8
2.3
1.9
-1.2
1.6
I
II
III
4.3
-1.6
r-0.8
7.2
3.0
r2.5
2.8
4.7
3.3
3.0
4.2
r5.5
-0.4
-0.6
rO.8
-1.2
5.9
r6.4
-0.3
3.7
r6.1
-1.0
5.3
6.3
13.8
0.3
r-8.9
0.3
4.8
4.8
Percent change from corresponding quarter of previous year
1987
1988
I
II
III
IV
0.5
1.5
2.3
1.6
2.0
3.9
5.6
5.6
1.5
2.4
3.2
3.9
3.3
3.2
3.3
3.4
1.0
-0.6
-0.9
-1.0
2.8
1.7
0.9
1.8
2.3
3.2
1.5
2.2
2.6
2.1
1.1
1.9
-3.8
-2.2
2.0
-l.l
2.0
1.7
1.2
1.6
ANNUAL
1.5
4.3
2.7
3.4
-0.3
1.8
2.3
1.9
-1.2
1.6
I
II
III
3.0
1.8
rO.4
6.7
5.9
r4.3
3.6
4.1
3.9
3.8
4.1
4.5
-0.1
0.2
0.3
0.8
2.3
r4.0
1.5
1.4
r2.7
1.0
2.1
3.7
3.1
2.2
-5.0
1.2
2.1
2.8
See footnotes following table 6.
r=revised
February 6, 1989
Source: Bureau of Labor Statistics
- 14 -
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-0.9b 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 -1.8 and +2.1 index points. This interval is based on the
performance of this measure between the first quarter of 1976 and the second
quarter of 1988.
Footnotes, Tables 1-6
(1) Wages and salaries of the 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) Quarterly manufacturing output measures are based on 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.
(y) Total unit cost is the sum of labor and nonlabor costs.
(9) Unit profits include corporate
capital consumption adjustments.
profits with inventory valuation and
@FedFRASER