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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 90-61
Wire embargo until 10:00 AM EST
Monday, February 5, 1990
PRODUCTIVITY AND COSTS
Fourth Quarter
and Annual Averages, 1989
The Bureau of Labor Statistics of the U.S. Department of Labor today
reported productivity results—as measured by output per hour of all persons—
for the fourth quarter and annual averages for 1989. The changes were:
Business sector,
Nonfarm business sector
Manufacturing
Durable goods manufacturing
Nondurable goods manufacturing...
Fourth
quarter
0.2
0.2
3.2
0.2
8.4
Annual averages
1988-1989
1.1
0.9
2.8
2.6
3.1
The 1988-89 productivity increases in business and nonfarm business were
the smallest since 1982.
Following the pattern of recent years, productivity
rose more rapidly in manufacturing than in these two larger sectors.
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, 1989
Business
Productivity increased at a 0.2 percent annual rate during the fourth
quarter of 1989 in the business sector, as output was unchanged and hours of
all persons engaged in the sector -declined 0.2 percent (seasonally adjusted
annual rates). The increase in productivity was the smallest in a year, and
the decline in hours was the first since the second quarter of 1986.
During
the third quarter of 1989, business productivity had increased 1.5 percent, as
output grew more rapidly than hours (table 1).
-2-
Table A. Productivity and costs: Preliminary fourth-quarter 1989 measures
(Seasonally adjusted annual rates)
___
Sector
Productivity
Output
Real
Hours
Hourly
compensation
hourly
compensation
Unit
labor
costs
Percent change from preceding quarter
Business
Nonfarm business
Manufacturing
Durable
Nondurable
0.2
0.2
3.2
0.2
8.4
0.0
-0.2
-1.3
-4.4
4 .0
-0.2
-0.4
-4.4
-4,6
-4.0
6.5
6.9
7.2
8.1
5.8
2.4
2.8
3.1
3.9
1.7
Percent change from same quarter a year ago
5.7
2.6
Business
1.5
1.1
1.1
1.1
2.2
5.7
1.6
Nonfarm business 0.6
0.2
4.8
-0.9
2.6
Manufacturing
1.7
0.4
5.0
0. 3
2.4
-2.0
Durable
0.2
0.7
3.2
4.7
4.0
Nondurable
6.3
6.7
3.9
7.8
-2.4
4.6
5.1
2.1
2.5
1,5
Hourly compensation increased at a 6.5 percent annual rate during the
fourth quarter of 1989, compared with a 4.7 percent increase 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 6.3
percent annual rate during the fourth quarter, compared with a 3.2 percent
increase one,quarter earlier.
Real hourly compensation, which takes into account changes in the Consumer
Price Index for All Urban Consumers (CPI-U), rose 2.4 percent in the fourth
quarter, compared with a 2.3 percent gain in the third quarter.
The implicit price deflator for business output, which reflects changes in
unit labor costs and unit nonlabor payments, increased 3.3 percent in the
fourth quarter.
Nonfarm business
Productivity also increased 0.2 percent in the nonfarm business sector
during the fourth quarter of 1989, as output fell 0.2 percent and hours of all
persons—employees, proprietors, and unpaid family workers—decreased 0.4
percent. During the third quarter, nonfarm productivity had increased 2.4
percent (table 2). As in the more comprehensive business sector, the drop in
hours was the first decline since the second quarter of 1986.
Hourly compensation rose 6.9 percent in the fourth quarter, or 2.8
percent when the increase in the CPI-U was taken into account. Unit labor
costs increased 6.7 percent, compared with a 2.8 percent rise during the third
quarter.
-3-
The implicit price deflator for nonfarm business output rose 3.9 percent
in the fourth quarter, compared with a 2.7 percent increase one quarter
earlier.
Manufacturing
Manufacturing productivity increased a good deal more rapidly than in the
more comprehensive business sectors reported above, growing at a 3.2 percent
seasonally adjusted annual rate in the fourth quarter of 1989. Output fell
1.3 percent and hours of all persons decreased 4.4 percent. This was the
first quarterly decline in output since the second quarter of 1986 (when it
fell 0.2 percent) and the largest decline in hours since the fourth quarter of
1982 (when a 7.6 percent decline was recorded). During the third quarter,
productivity rose 1.2 percent, output rose 1.4 percent and hours edged up 0.1
percent (table 3).
Hourly compensation of manufacturing workers increased 7.2 percent
the fourth quarter, or 3.1 percent when the increase in consumer prices
taken into account. Unit labor costs rose at a 3.9 percent annual rate
fourth quarter of 1989, compared with a 4.6 percent increase during the
quarter.
during
was
in the
third
Both durable and nondurable goods industries experienced productivity
increases in the fourth quarter, but the increase in nondurable goods
manufacturing was far larger—8.4 percent in nondurables versus 0*2 percent in
durables (tables 4 and 5). Output declined in durables but increased strongly
in nondurables; hours declined in both.
ANNUAL CHANGES, 1988-1989
Business
Business productivity increased 1.1 percent when the annual average for
1988 was compared with the average for 1989 (table B). This was the smallest
gain since 1982. Output rose 3.4 percent in 1989, and hours of all persons
engaged in the sector increased 2.3 percent. The increases in productivity,
output, and hours were all smaller than the gains in 1988 (table C).
Table B.
Productivity and costs: 1989 annual measures
Sector
Productivity
Output
Hours
Hourly
compensation
Real
hourly
compensation
Unit
labor
costs
Percent change in annual averages, 1988-1989
Business
Nonfarm business
Manufacturing
Durable
Nondurable
1.1
0.9
2.8
2.6
3.1
3.4
3.3
3,7
3.2
4.6
2.3
2.4
0.9
0.6
1.4
5.5
5.5
4.3
4.1
4.6
0.7
0.6
-0.5
-0.7
-0.2
4.4
4.6
1.4
1.4
1.4
-4-
Hourly compensation increased 5.5 percent in 1989, compared with a 4.8
percent increase during 1988. Unit labor costs increased 4.4 percent during
1989, compared with a 3.0 percent increase one year earlier. Real hourly
compensation edged up 0.7 percent in 1989, compared with a 0.6 percent gain in
1988.
The implicit price deflator for business output increased 3.9 percent in
1989, compared with a 2.9 percent increase in 1988. This was the largest
increase in prices in the business sector since 1982 (table C).
Nonfarm business
Productivity increased only 0.9 percent in the nonfarm business sector
during 1989, as output rose 3.3 percent and hours of all persons increased 2.4
percent. This was the smallest gain in the hourly output of goods and
services in the nonfarm business sector since 1982.
Hourly compensation rose 5.5 percent in 1989, but rose only 0.6 percent
when the increase in the CPI-U was taken into account. Unit labor costs
increased 4.6 percent, compared with a 2.7 percent rise during 1988.
Table C.
Annual changes in productivity and related measures, 1980-1989
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
Business:
Productivity..... -0.3
Output
-1.1
Hours
-0.8
Hourly comp
10.5
Real hourly comp. -2.6
Implicit price def. 9.0
1.5
2.1
0.6
9.3
-0.9
9.6
-0.7
-3.1
-2.4
7.5
1.2
5.9
2.4
4.2
1.8
3.8
0.6
3.3
2.6
8.4
5.7
4.1
-0.2
3.3
2.0
4.2
2.2
4.4
0.8
2.5
2.3
3.1
0.8
5.2
3.3
2.1
1.2
4.2
3.0
3.9
0.2
2.6
1.7
4.9
3.2
4.8
0.6
2.9
1.1
3.4
2.3
5.5
0.7
3.9
Nonfarm Business:
Productivity
-0.4
Output
-1.2
Hours
-0.7
Hourly comp
10.5
Real hourly comp. -2.6
Implicit price def. 9.7
1.1
1.7
0.6
9.5
-0.7
9.7
-0.9
-3.3
-2.4
7.4
1.1
6.3
3.0
5.0
2.0
4.0
0.7
3.5
2.1
8.3
6.0
3.9
-0.4
3.0
1.3
3.9
2.6
4.1
0.5
3.0
2.0
3.0
0.9
5.1
3.2
2.3
1.1
4.4
3.2
3.7
0.1
2.6
2.0
5.4
3.4
4,7
0.5
2.7
0.9
3.3
2.4
5.5
0.6
3.9
Manufacturing:
Productivity
0.0
Output
-4.5
Hours
-4.6
Hourly comp
11.7
Real hourly comp. -1.6
Implicit price def. 8.4
2.3
1.6
-0.7
9.7
-0.5
8.9
2.5
-6.1
-8.5
8.9
2.6
5.1
5.2
6.4
1.2
2.5
-0.7
1.1
5.4
12.2
6.5
3.3
-0.9
0.7
4.5
3.8
-0.7
4.9
1.2
-1.5
3.8
2.3
-1.4
4.5
2.6
1.6
3.7
2.7
4.3
6.1
0.6
3.3
2.7
3.6
-1.0-0.5
-0.2 n.a.
2.8
3.7
0.9
4.3
-0.5
n.a.
Measure
n.a. -, Not available.
-5-
The implicit price deflator for nonfarm business output rose 3.9 percent
in 1989, compared with a 2.7 percent increase one year earlier.
Manufacturing
Manufacturing productivity increased more rapidly in 1989 than in the
more comprehensive business sectors reported above, growing at a substantial
2.8 percent. Output rose 3.7 percent and hours of all persons increased 0.9
percent. During 1988, productivity rose 2.7 percent, output rose 6.1 percent
and hours increased 3*3 percent.
Hourly compensation of manufacturing workers increased 4.3 percent during
1989, but declined 0.5 percent when the increase in consumer prices was taken
into account. This marked the third year in a row real hourly compensation
declined for manufacturing workers. Unit labor costs rose 1.4 percent in
1989, compared with a 0.9 percent increase during 1988.
Both durable and nondurable goods industries experienced productivity
increases in 1989. Productivity, output, and hours of all persons increased
more rapidly in nondurable- than in durable-goods manufacturing.
Revised third quarter 1989 measures
Previous and revised productivity and cost measures for the third quarter
are compared in table D for nonfinancial corporations. Current measures are
little changed from those announced December 6, 1989.
Table D. Previously published and current measures for nonfinancial
corporations, third quarter 1989
Percent change from previous quarter
(Seasonally adjusted annual rates)
Item
Previous
Current
Productivity Output
2.9
3.0
4.2
4.3
Hours
1.3
1.2
Real
Hourly hourly Unit
compen- compen- labor
sation sation costs
5.3
5.4
2.9
2.9
2.4
2.3
Unit
profits
Implicit
price
deflator
-11.6
-10.3
2.6
2.6
Next release date
The next issue of Productivity and Costs is scheduled for release at
10:00 AM EST, Wednesday, March 7, 1990, and will contain measures for
nonfinancial corporations, business, nonfarm business, and manufacturing.
-6TECHNICAL NOTES
Labor Input: The primary source of hours and employment data is the BLS
Current Employment Statistics (CES) program, which provides monthly survey
data on total employment and average weekly hours of production and
nonsuperviso^y workers in nonagricultural establishments. Nonproduction and
supervisory worker hours are developed by BLS from supplementary sources.
Jobs rather than persons are counted. Weekly hours are adjusted to the hours
at work definition using the BLS Hours at Work survey, conducted for this
purpose.
Data from the BLS Current Population Survey (CPS) are used for farm
labor; in the nonfajrm sector, the National Income and Product Accounts (NIPA)
prepared by the Bureau of Economic Analysis of the Department of Commerce and
the CPS are used to measure labor input for government enterprises,
proprietors, and unpaid family workers.
Output: Business sector output is equal to gross national product (GNP) 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 NIPA. Corresponding exclusions are also made in
labor inputs. Business output was about 81 percent of GNP in 1988. Nonfarm
business, which also excludes farming, was about 79 percent of GNP in 1988.
Total manufacturing measures are computed by summing series prepared for
the durable and nondurable goods sectors. Durables include the following 2digit 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. ' Nondurables include:
Textile mill products, apparel products, leather and leather products,
printing and publishing, chemicals and chemical products, petroleum products,
rubber and plastic products, food, and tobacco products. Manufacturing
accounted for about 22 percent of GNP in 1988.
Nonfinaneial corporate output is equal to GNP 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, unincorporated business, the output of corporations
engaged in banking, finance, stock and commodity trading, and credit and
insurance agencies, and the statistical discrepancy in computing the NIPA.
Nonfinancial corporations accounted for about 60 percent of GNP in 1988.
Productivity: These productivity measures describe the relationship between
real output and the labor .time involved in its production. Thqy 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.
Table 1. Business sector: Productivity, hourly compensation, unit labor cost, and prices,
Real
Hours
CompensacompensaOutput per
Output
Year and
of all
tion per
tion per
hour
quarter
of all persons
persons
hour(l)
hour(2)
1988
1989
1988
1989
1988
1989
seasonally adjusted
Dnit
labor
cost
I
II
III
IV
113.2
112.6
113.4
113.5
138.2
139.3
14(1.7
141.9
Indexes 1977=100
196.4
122,1
199.1
123.8
124.0
201.9
125.0
204.5
ANNUAL
I
II
III
IV
113.0
113.8
114.2
114.7
114.7
140.0
143.6
144.4
145.6
145.6
123.9
126.2
126.4
127.0
126.9
200.2
206.9
210.4
212.8
216.2
102.5
102.8
102.9
103.5
104.1
177.1
181.9
184.1
r!85.6
188.4
ANNUAL
114.2
144.8
126.8
211.3
103,3
185.0
I
II
III
IV
2,5
-2.1
3.1
0.2
ANNUAL
1
II
III
IV
1.7
1.1
1.6
rl.5
0.2
4.9
4,8
2.3
r3.5
0.0
3.2
3.7
0.6
1.9
-0.2
4.8
4.8
ANNUAL
1.1
3.4
2.3
5.5
I
II
III
IV
2.9
1.7
1.5
0.9
ANNUAL
I
II
III
IV
1.7
0.5
1.5
1.1
1.1
4.9
3.9
3.6
3.5
2.6
3.2
3.3
2.1
2.4
1.5
4.8
5.4
5.6
5.A
5.7
0.6
0.6
0.4
0.7
1.1
4.1
ANNUAL
1.1
3.4
2.3
5,5
0.7
See footnotes following table 6.
r«rev1sed
*lnit noolabor payments(3)
102.3
102.5
102.8
103.0
173.5
176.9
17R.O
180.2
168.9
16a.8
171.8
173.7
170.9
174.7
176.3
r!76.5
175.4
Percent change from previous quarter at annual rate(5)
-1.0
0.1
4.4
2.6
1.9
5.7
8.0
5.5
3.3
1.1
1.0
5.8
4.0
2.6
0.9
3.4
0.7
5.2
5.0
3.2
0,6
Imjjl icit
>jrice
rtt>f1dtor(4)
171. y
174.1
175. ft
177.9
174.^
179.4
IH1.4
182.4
183.9
1R1.8
4,2
-0.2
7.1
4.6
1.5
5.1
4.1
4.8
•0.6
0.4
2,3
3.0
3.7
2.7
2.4
Ai
2,4
6.3
rfct
-2.3
2.9
3.3
4.6
r2.2
3.3
0.7
4,4
2.8
3.9
Percent change from corresponding quarter of previous year
4.3
1.3
0.3
2.9
5.9
5.4
3.3
5.1
3.6
1.1
*.3
3.7
1.1
4.7
3.1
2.9
0.4
4.8
3.8
3.9
3.9
1.4
1.7
3.9
2.2
2.6
3.0
3.9
4.2
4.6
2.7
3.4
4.4
r2.7
1.0
2.9
4.3
4.2
r3.7
3.3
4,4
2.8
3.9
W
6.5
3.0
4.8
February 5 t 1990
Source: Bureau of Labor Statistics
-GTable 2. Nonfarm business sector: Productivity, hourly compensation, unit labor cost, and prices, seasonally
Year and
quarter
1988
1989
1988
1989
1988
1989
Output per
hour
of all persons
Output
Hours
of all
persons
Compensa*
tion per
hour(l)
Real
compensation per
hour(2)
Unit
labor
cost
'Jnit nonlabor payments (3)
Implicit
price
deflator(-i)
173.8
175.6
111.0
110.5
111.5
112*0
138.0
139.5
141.1
142.8
Indexes 1977*100
124.3
195.0
197.5
126.2
126.6
200.2
203,0
127.5
101.5
101,7
101.9
102.3
17Q,6
W.3
170.3
169.8
172.1
176.3
ANNUAL
1
II
III
IV
111.1
111.6
111.9
112.6
112.7
140.3
143.6
144.6
145.9
145.9
126.3
128.6
120.2
129.6
129.5
198.7
205.5
208.3
211.0
214.6
101.8
102.1
101.9
102.7
103.4
178.8
184.1
186.1
187.4
190.5
172.2
174.6
176.5
r!77.6
176.9
176.fi
IftO.H
18? .8
rlflA.O
I85.fi
ANNUAL
112.1
145.0
120.4
209.6
10?.4
187.0
176.5
183.4
I
II
III
IV
Percent change from previous quarter at annual rate(b)
2.0
4.8
2.5
-0.3
-1.1
6.1
4.4
5.4
0.8
7.1
5.4
0.7
1.2
2.0
4.6
2.8
1.4
5.9
3.8
4.8
I
II
III
IV
2.8
-1.6
3.3
1.9
ANNUAL
I
II
III
IV
2.0
-1.3
1.1
r2.4
0.2
5.4
2.4
2.8
3.7
-0.2
3.4
3.7
1.7
1.3
-0.4
4.7
4.9
5.6
5.3
6*9
0,5
-0.5
-0.7
2.8
2,8
ANNUAL
0.9
3.3
2.4
5.5
0.6
I
II
III
IV
3.0
1.8
1.7
1.6
ANNUAL
I
II
III
IV
2.0
0.6
1.31.0
O.fi
5.4
4.1
3.7
3.4
2.2
3.4
3.5
2.4
2.4
1.6
4.7
5,4
5.5
5.4
5.7
0,5
0.6
0.2
0.7
1.1
ANNUAL
0,9
3.3
2.4
5.5
0.6
See footnotes following table 6.
r«rev1sed
175.7
178.7
177. ij
\79.6
i.n
3,6
-1.0
5.4
10.1
4.3
3.2
5.9
4.5
2.8
6.7
2.7
-3.7
4.2
r2.5
-1.4
2.7
2.8
4.4
r2.7
3.9
4.6
2.5
3.9
Percent change from corresponding quarter of previous year
0,3
6.1
3.0
1.2
4.2
4.9
3.8
1.0
3.1
5.7
3.4
3.3
5.1
0.9
5.2
0.4
4.8
3.0
3.,1
4.7
3.7
1.3
1.1
4.5
2.0
2.5
2.5
3.6
2.7
4.8
4.1
r4.4
5.1
2.7
2.6
3.9
r3.2
0.4
2.7
4.0
4.1
4.0
3.5
4.6
2.5
3.9
2.7
6.2
February 5, 1990
Source: Bureau of Labor Statistics
-0-
Table 3, Manufacturing sector: Productivity, hourly compensation, and unit labor cost,
seasonally adjusted
Real
Hours
CompensacompensaOutput per
Output
Year and
of all
tion per
t ion per
hour
(6)
quarter
persons
hour(l)
hour(2)
of all persons
Unit
labor
cost
Indexes 1977=100
1988
1989
135.5
136.3
137.8
138.6
135.0
136.9
139.3
141.1
99.7
100.5
101.1
101.8
194.3
195.3
197.4
200.2
101.2
100.6
100.5
100.8
143.4
143.3
143.2
144.4
ANNUAL
136.5
138.1
101.2
196.0
100.4
143.6
I
II
III
IV
139.4
140.7
141.1
142.2
142.2
143.4
r!43.9
143.4
102.0
101.9
102.0
100.8
201.9
203.2
r206.1
209.8
100.3
99.4
100.3
101.0
144.8
144.4
rl46.1
147.5
ANNUAL
140.3
143.2
102.1
204.4
99.9
145.7
I
II
III
IV
Percent change from previous quarter at annual rate(5)
1988
1989
I
II
III
IV
2.2
2.5
4.7
2.2
4.6
5.8
7.1
5.1
2.3
3.2
2.4
2.9
5.6
2.2
4.3
5.7
.1.9
-2.3
-0.4
1.2
3.3
-0.3
-0.3
3.5
ANNUAL
2.7
6.1
3.3
3.6
-0.5
0.9
I
II
III
IV
2.4
3.7
rl.2
3.2
3.1
3.5
rl.4
-U3
0.7
-0.2
rO.l
-4.4
3.5
2.7
5.9
7.2
-1.9
-3.5
r3.4
3.1
1,0
-1.0
r4.6
3.9
ANNUAL
2.8
3.7
0.9
4.3
-0.5
1.4
Percent change from corresponding quarter of previous year
1988
1989
I
II
III
IV
3.0
2.3
2.7
2.9
6.2
6.4
6.2
5.6
3.1
4.0
3.5
2.7
2.9
3.4
3.7
4.4
-1.0
-0.5
-0.4
0.1
-0.1
1.1
1.0
1.5
ANNUAL
2.7
6.1
3.3
3.6
-Of5
0.9
I
II
III
IV
2.9
3.2
r2.4
2.6
5.3
4.7
r3.3
1.7
2.3
1.4
0.9
-0.9
3.9
4.0
4.4
4.8
-0.8
-1.1
-0.2
0.2
1.0
0.8
r2.0
2.1
ANNUAL
2.8
3.7
0.9
4.3
-0.5
1.4
See footnotes following table 6.
r=revised
February 5, 1990
Source: Bureau of Labor Statistics
-in-
Table 4, Durable manufacturing sector; Productivity, hourly compensation, and unit labor
seasonally adjusted
Real
Output per
Output
Hours
CompensacompensaYear and
hour
(6)
of all
tlon per
tlon per
quarter
persons
hour(i)
hour{2)
of all persons
cost,
unit
labor
cost
Indexes 1977=100
1988
1989
I
II
III
IV
142.5
143.3
144.4
144.9
141.3
144.0
146.4
148.3
99.2
100.5
101.4
102.3
192.6
192.4
193.9
196.9
ANNUAL
142.8
145.0
101.5
19?. 6
98.7
134.9
I
II
III
IV
145.6
147.7
148.3
148.4
149.1
150.3
150.4
148.8
102.4
101.7
101.4
100.2
198.8
199.6
202.7
206.7
98.8
97.7
98.6
99.6
136.5
135.1
136.7
139.3
ANNUAL
146.5
149.6
102.1
200.5
98.0
136.9
100.3 .
99.1
98.7
99.2
135.2
134.3
134.3
136.9
Percent change from previous quarter at annual rate(5)
1988
1989
I
II
III
IV
1.9
2.3
3.2
1.5
4.3
7.7
6.8
5.3
2.3
5.3
3.4
3.8
6.0
-0.4
3.3
6.3
2.3
-4.8
-1.3
l.R
4.0
-2.6
0.1
4.8
ANNUAL
2.3
6.6
4.2
2.8
-1.3
0.4
I
II
III
iv
1.9
5.9
1.7
0.2
2.2
3.2
0.4
-4.4
0.3
-2.5
-1.3
-4.6
3.8
1.7
6.4
8.1
-1.5
-4.4
r3.9
3.9
1.8
-4.0
r4.6
7.8
ANNUAL
2.6
3.2
0.6
4.1
-0.7
1.4
Percent change from corresponding quarter of previous year
1988
1989
I
II
III
IV
2.7
2.1
2.3
2.2
6.0
7.3
7.2
6.0
3.2
5.0
4.8
3.7
2.3
2.4
2.6
3.8
-1.6
-1.4
-1.4
-0.5
-0.5
0.3
0.3
1.5
ANNUAL
2.3
6.6
4.2
2.8
-1.3
0.4
I
II
III
IV
2.2
3.1
2.7
2.4
5.5
4.4
2.8
0.3
3.2
1.2
0.0
-2.0
3.2
3.8
4.5
5.0
-1.5
-1.4
-0.1
0.4
1.0
0.6
rl.7
2.5
ANNUAL
2.6
3.2
0.6
4.1
-0.7
1.4
See footnotes following table 6.
r=revised
February 5, 1990
Source: Bureau of Labor Statistics
Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor cost,
seasonally adjusted
Real
Hours
CompensacompensaOutput per
Output
Year and
Unit
of al 1
tion per
tion per
hour
(6)
quarter
labor
of all persons
persons
hour(l)
hour(2)
cost
Indexes 1977=100
1988
1989
I
II
III
IV
125.1
125.9
128.0
129.0
125.6
126.4
128.8
130.3
100.4
100.4
100.6
101.0
197.5
200.5
203.4
205.7
102.9
103.3
103.5
103.6
157.8
159.3
158.9
159.4
ANNUAL
127.0
127.8
100.6
201.8
'103.4
158.9
I
II
III
IV
130.0
130.3
r!30.5
133.2
131.8
133.1
r!34.1
135.4
101.3
102.2
102.8
101.7
207.2
209.7
212.4
215.4
103.0
102.6
103.3
103.8
159.3
160.9
rl62.8
161.8
131.0
133.6
102.0
211.1
103.2
161.2
ANNUAL
Percent change from previous quarter at annual rate(5)
1988
1989
I
II
III
IV
2.7
2.5
6.9
3.2
5.1
2.7
7.7
4.8
2.3
0.2
0.8
1.6
4.8
6.2
5.8
4.6
1.2
1.6
1.0
0.1
2.1
3.7
-1.0
1.4
ANNUAL
3.1
5.2
2.1
4.8
0.7
1.7
I
II
III
IV
3.3
0.7
rO.8
8.4
4.7
4.0
r3.1
4.0
1.4
3.3
r2.3
-4.0
2.9
4.9
5.4
5.8
-2.4
-1.4
2.9
1.7
-0.4
4.2
r4.6
-2.4
ANNUAL
3.1
4.6
1.4
4.6
-0.2
1.4
Percent change from corresponding quarter of previous year
1988
1989
I
II
III
IV
3.4
2.3
2.9
3.8
6.4
4.9
4.6
5.0
2.9
2.6
1.6
1.2
4.0
4.7
5.2
5.4
0.0
0.8
1.0
1.0
0.6
2.4
2.2T
1.5
ANNUAL
3.1
5.2
2.1
4.8
0.7
1.7
I
II
III
IV
3.9
3.5
r2.0
3.2
5.0
5.3
r4.1
4.0
1.0
1.8
r2.1
0.7
4.9
4.6
4.5
4.7
0.1
-0.6
-0.2
0.2
0.9
1.0
r2.4
1.5
ANNUAL
3.1
4.6
1.4
4.6
-0.2
1.4
See footnotes following table 6.
r=revised
February 5, 1990
Source: Bureau of Labor Statistics
-12-
Table 6* Nonfinancial corporations: Productivity, hourly compensation, unit labor cost, unit profits,
and prices* seasonally adjusted
Output
Year
and
per allquarter empl oyee
hour
Output
Empl oyee Hourly
Real
hours compensa- hourly
tion
compen(1)
sation(2)
Unit
1 abor
cost
Unit
nonlabor
cost(7)
Total
unit
cost
(8)
Unit Implicit
pro- price
fits deflator
(9)
(4)
Indexes 1977=100
I
II
III
IV
114.6
114.7
115.1
114.9
141.2
142,8
144.3
145.4
123.2
124.5
125.4
126.5
190.9
193.1
195.5
197.8
99.4
99.5
99.5
99.6
166.6
168.4
169.9
172.1
187.8
188.9
191.0
193.3
171.9
173.6
175.2
177.5
127.0
129.1
127.5
131.6
166.5
168.2
169.5
172.0
ANNUAL
114.7
143.5
125.1
194.1
99.4
169.3
190.3
174.6
128.8
169.1
I
II
III
114.5
114.5
115.3
145.8
146.5
r!48.1
127.4
128.0
128.4
200.2
202.8
205.5
99.5
99.3
100.0
174.9
177.1
P178.1
196.9
200.1
r203.9
180.4
182.9
r!84.6
119.6
116.6
rl!3.5
173.1
175.0
176.1
1988
1989
Percent change from previous quarter at annual rate(5)
I
II
III
IV
3.9
0.4
1.3
-0.4
6.8
4.6
4.3
3.?.
2.7
4.2
2.9
3.6
2.9
4.9
4.9
4.8
-0.7
0.3
0.2
0.4
-1.0
4.5
3.6
5.3
1.1
2.5
4.6
4.9
-0.4
3.9
3.9
5.2
17.6
6.8
-4.7
13.3
1.1
4.2
3.1
5.9
ANNUAL
2.3
6.0
3.6
4.3
0.2
1.9
2.1
2.0
4.7
2.2
I
II
III
-1.7
0.1
>3.0
1.0
2.0
r4.3
2.7
1.8
4.9
5.4
r5.4
-0.5
-0.9
2.9
6.6
5.3
r2.3
7.5
6.7
r7.7
6.9
5.7
r3.8
-31.7
-9.7
r-10.3
2.8
4.3
2.6
1988
1989
n.2
Percent change from corresponding quarter of previous year
I
II
III
IV
3.8
2.8
1.8
1.3
7.4
6.6
5.4
4.7
3.5
3.8
3.5
3.4
3.9
4.5
4.6
4.4
0.0
0.6
0.4
0.0
0.1
1.7
2.8
3.1
1.5
1.4
2.2
3.3
0.5
1.6
2.6
3.1
7.5
5.4
-1.3
7.9
1.1
2.0
2.2
3.5
ANNUAL
2.3
6.0
3.6
4.3
0.2
1.9
2.1
2.0
4.7
2.2
I
II
III
-0.1
-0.2
0.2
3.2
2.6
2.6
3.4
2.8
2.3
4.9
5.0
5.1
0.1
-0.2
0.4
5.0
5.2
4.9
4.9
5.9
r6.7
5.0
5.4
5.4
-5.8
-9.7
r-11.0
4.0
4.0
3.9
1988
1989
See footnotes following table 6.
r=.rev1sed
February 5, 1990
Source: Bureau of Labor Statistics
-13SOURCE: Output data from the Bureau of Economic Analysis, U.S. Department of
Commerce, and the Federal Reserve Board. Compensation and hours data from the
Bureau of Labor Statistics, U.S. Department of Labor, and the Bureau of
Economic Analysis.
RELIABILITY: Productivity and cost measures are regularly revised as more
complete information becomes available. The measures are first published 30
days after the close of the reference period; revisions appear 30 days later,
and third revisions after an additional 60 days. In the business sector, the
probability is 0.95 that the third publication (third 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 second quarter of 1976 and the third quarter of
1988.
Footnotes, Tables 1-6
(1)
Wages and salaries of employees plus employers' contributions for social
insurance and private benefit plans. Except for nonfinancial
corporations, where there are no self-employed, data also include an
estimate of wages, salaries, and supplemental payments for the selfemployed .
(2)
Compensation per hour adjusted for changes in the Consumer Price Index
for All Urban Consumers*
(3)
Unit nonlabor payments include profits, capital consumption allowances,
interest, rental income of persons, and indirect taxes.
(4)
Current dollar gross product divided by constant dollar gross product,
(5)
Quarterly changes: Percent change compounded at annual rate from the
original data rather than index numbers. Annual changes: Percent
change between annual average levels.
(6)
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.
(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.
@FedFRASER