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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 90-117
Wire embargo until 10:00 AM EST
Wednesday, March 7, 1990
PRODUCTIVITY AND COSTS
Fourth Quarter and Annual Averages 1989
Business, Nonfarm Business, and Manufacturing
and 1989 Annual Averages for
Nonfinancial Corporations
The Bureau of Labor Statistics of the U.S. Department of Labor today
reported revised productivity results—as measured by output per hour of all
persons—for the fourth quarter and annual averages for 1989. The percentage
changes, based on the latest information available, were:
Business sector
Nonfarm business sector
Manufacturing
Durable goods manufacturing
Nondurable goods manufacturing...
Fourth
quarter
0.2
0.2
2.8
-0.4
8.3
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 increased 0.1 percent and
hours of all persons engaged in the sector were unchanged (seasonally adjusted
annual rates). The increase in productivity was the smallest in a year, and
it was the first time hours did not increase 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: Revised fourth quarter 1989 measures
(Seasonally adjusted annual rates)
Sector
Productivity
Output
Hours
Hourly
compensation
Real
hourly
compensation
Percent change from preceding quarter
1 .5
Business
0.0
5 ,5
0 ,2
0 .1
1 .9
Nonfarm business 0 ,2
0 .0
6.0
-0 .2
-4 .3
2 .8
-1 .6
Manufacturing
6 .9
2 .8
-4 .5
-4 .9
3 .1
-0 .4
Durable
7 .3
4 ,0
-3 .9
6 .3
2 .2
8 .3
Nondurable
Percent change from same quarter a year ago
5.5
Business
0.9
1*6
2.7
1.1
2,2
Nonfarm business 0.6
0.8
5.4
1.6
2.5
0.1
-0.9
4.7
Manufacturing
1.6
0.2
2.2
0.2
-2.0
4.8
Durable
4.9
4.0
3.2
0.3
Nondurable
0.7
Unit
labor
costs
5.4
5.8
4.0
7.7
-1.8
4.3
4.8
2.1
2.4
1.6
Hourly compensation increased at a 5.5 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 5.4
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 1.5 percent in the fourth
quarter, compared with a 1.9 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 2.8 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 was unchanged and hours of all
persons—employees, proprietors, and unpaid family workers—decreased 0.2
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.
-3-
Hourly compensation rose 6.0 percent in the fourth quarter, or 1.9
percent when the increase in the CPI-U was taken into account. Unit labor
costs increased 5.8 percent, compared with a 2.8 percent rise during the third
quarter.
The implicit price deflator for nonfarm business output rose 3.4 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 2.8 percent
seasonally adjusted annual rate in the fourth quarter of 1989. Output fell
1.6 percent and hours of all persons decreased 4.3 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 6*9 percent during
the fourth quarter, the largest such increase since the second quarter of 1982
(when it rose 8.2 percent). The fourth quarter 1989 increase was 2.8 percent
when the increase in consumer prices was taken into account. Unit labor costs
rose at a 4.0 percent annual rate in the fourth quarter of 1989, compared with
a 4.6 percent increase during the third quarter.
Productivity increased only in nondurable goods manufacturing in the
fourth quarter, but the increase — 8.3 percent — outweighed the 0,4 percent
productivity decline in durables (tables 4 and 5). Output declined in
durables but increased strongly in nondurables; hours declined in both.
ANNUAL CHANGES, 1988-1989
Nonfinaneial corporations
The Bureau of Labor Statistics also reported annual productivity and
related indexes for nonfinaneial corporations for 1989. Productivity was
unchanged from 1988, as output and hours both increased 2.5 percent during the
year. This was the first year nonfinancial corporate productivity failed to
grow since 1980 (when a 0.7 percent decline occurred). Hourly compensation
rose 5.1 percent in 1989 but rose only 0.3 percent when the increase in the
CPI-U was taken into account. Unit labor costs rose 5.2 percent (their
largest increase since 1982), unit nonlabor costs rose 6.1 percent (also the
largest gain since 1982), and unit profits declined 12.7 percent (their
largest decline since 1982). Annual changes from 1980 to 1989 are shown in
table B.
-4-
Table B. Nonfinancial corporations:
related measures, 1980-1989
Measure
1980
1981
1982
0.3
0.6
Productivity. . « • . -0.7
Output
. . -1.8
1. 6 -3.0
-1 . 1 1 . 0 -3.3
Hours
Hourly comp
7. 3
10.5
9. 4
1.1
Real hourly comp. -2.7 -0.9
Unit labor costs.. 11.2
Unit nonlabor cost 18.0
Total unit costs . .12.9
-9 .9
Unit profit
Implicit price def 10.7
6.9
8.7
16.4 10.9
8.0
10.7
15.2 -20.0
5.7
11.0
Annual changes in productivity and
1983
1984
2.7
2.4
4.7
9.1
1 . 9 6.6
3.2
3.8
0.0 -0.5
0.4
1.3
-1.2 -0.4
0 0
0.8
41. 4 23.1
2.6
2.8
1985
1.6
4.0
2. 3
4.0
0.4
2.4
1.2
2.1
-2 .6
1.6
1988
19 86
1987
2, 3
? 7
0, 4
4 8
2 .9
2 .2
5.0
2 .7
3.4
-0.2
2, 3
6.0
3.6
4,3
0.2
2 .5
3 .4
2 .7
-7 ,5
1 .7
1.2
2.6
1.6
-0.1
1.4
5.2
1.9
2.1
6.1
5.4
2.0
4.7 -12.7
2.2
3.8
1989
0 .0
2 .5
2 .5
5.1
0.3
Revised fourth-quarter and 1989 annual measures
Previous and revised productivity and cost measures for the fourth
quarter and full year 1989 are compared in table C for the business, nonfarm
business, and manufacturing sectors. In all sectors, measures of real hourly
compensation were affected by updated data on consumer prices: revised
seasonal adjustment factors affected movements in consumer prices beginning in
1985. Annual measures are virtually unchanged from those released on February
5, based on information then available.
Table C. Previous and current productivity and related measures
Fourth quarter and annual averages 1989
(Seasonally adjusted annual rates)
Sector
Productivity
Output
Hours
Hourly
compensation
Real
hourly
compensation
Percent change, third to fourth quarter 1989
Business:
2 .4
0.2
Previous
6 .5
-0.2
0. 0
1 .5
0. 2
5 .5
0.0
0. 1
Current
Nonfarm business :
2 .8
0. 2
Previous
-0.2
6.9
-0.4
0.2
1 .9
0. 0
6 .0
Current
-0.2
Manufacturing:
3. 2
Previous
-4. 4
-1. 3
3 .1
7 .2
2. 8
»4,3
2 .8
-1.6
6 *9
Current
Unit
labor
costs
6.3
5.4
6.7
5.8
3.9
4.0
_
Percent change, 1988
Business:
Previous
Current
Nonfarm business •
Previous
Current
Manufacturing:
Previous
Current
1989
1. 1
1.1
3. 4
3. 4
2. 3
2. 3
5 .5
5 .5
0 .7
0 .6
4.4
4.4
o.9
0.9
3. 3
3. 3
2 .4
2. 4
5 .5
5 .4
0.6
0.6
4.6
4.5
2. 8
2. 8
3. 7
3. 7
0* 9
0.9
4.3
4.3
-0 ,5
-0 .5
1.4
1.5
Next release date
The next issue of Productivity and Costs is scheduled for release at
10:00 AM EOT, Monday, May 7, 1990, and will contain measures for business,
nonfarm business, and manufacturing.
-6-
TECHNICAL NOTES
Labor Input: The primary source of hours and employment data is the BLS
Current Employment Statistics (CES) program, which provides monthly survey
data on total employment and average weekly hours of production and
nonsupervisory workers in nonagricultural establishments. 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 nonfarm sector, the National Income and Product Accounts (NIPA)
prepared by the Bureau of Economic Analysis of the Department of Commerce and
the CPS are used to measure labor input for government enterprises,
proprietorsf 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.
Nonfinancial 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. 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.
-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)
Real
Compensation per
hour(2)
Unit
labor
cost
Unit nonImplicit
labor payprice
roents(3)deflator(i)
Indexes 1977=10Q
1988
1989
IV
113.2
112.6
113.4
113.5
138.2
139.3
140.7
141.9
122.1
123.8
124.0
125.0
196.4
199.1
201.9
2Q4.5
102.3
r!02.6
102.8
103.0
173.5
176.9
178,0
180.2
168.9
168.8
171.8
173.7
171.9
174.1
175.8
177.9
ANNUAL
113.0
140.0
123.9
200.2
102.5
177.1
170.9
174.9
I
II
III
IV
113.8
114.2
114.7
114.7
143.6
144.4
145.6
145.6
126.2
126.4
127.0
rl27.o
206.9
210.4
212.8
r215.7
102.8
r!03.0
103.V
rlQ3,9
181.9
184.1
185.6
r!88.0
174.7
176.3
176.6
179.4
181.4
182.4
r!75.6
r!83,7
ANNUAL
114.2
144.8
126.8
r211.2
r!03.2
r!84.9
175.8
rl81.7
I
II
III
Percent change from previous quarter at annual rate(5)
1988
1989
5.2
r~Q.8
rl.2
rO.7
rO.8
0.1
8.0
2.6
5.0
4.2
-0.2
7.1
4.6
1.5
5.1
4.1
4.8
3.2
4.8
0.6
3.0
2.7
2.9
4.8
2.3
3.5
rO.l
3.7
0.6
1.9
r0.n
4.8
6.8
4.7
r5,5
-0.6
rO.8
rl.9
rl.5
3.7
5.1
3.2
r5.4
2.4
3.5
0.4
r-1.9
3.3
4.6
2.2
r2.8
3.4
2.3
$,$
rO.6
4.4
r2.9
3.9
2.6
3,4
1.9
5,5
0.9
3.2
1.7
4.9
in
IV
1.1
1*6
1,5
0.2
ANNUAL
1.1
2.5
-2.1
3.1
0.2
4.4
3.3
4.0
ANNUAL
I
II
I
' II
III
IV
5.7
5.8
Percent change from corresponding quarter of previous year
1988
1989
4.7
3.8
3.6
3.1
2.9
4,3
5.1
5.3
4,8
rO.4
1.1
1.1
rO.$
1.3
3.3
3.7
3.9
3.9
1.4
1.7
3.9
2.2
2.6
3.0
3.9
1.7
4.9
3.2
4.8
0.6
3,0
2.7
2.9
I
II
III
IV
0.5
1.5
1.1
1.1
3.9
3,6
3.5
r2.7
3.3
2.1
2.4
rl.6
5.4
5.6
5.4
r5f5
0.6
Q,4
0.7
rO.9
4.8
4.1
4.2
r4.3
3.4
4.4
2.7
rl.l
4.3
4.2
3.7
r3.2
ANNUAL
1.1
3.4
2.3
5.5
rO.6
4.4
r2.9
3.9
I
II
III
IV
2.9
1.7
1,5
0.9
ANNUAL
See footnotes following table 6.
r-revised
5.9
5.4
2.9
March 7. 1990
Source: Bureau of Labor Statistic!
Table 2. Nonfarm 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 non*
labor payments(3)
Implicit
price
deflator(4)
Indexes 1977=100
1988
1989
I
II
III
IV
111.0
110.5
111.5
112.0
138.0
139.5
141.1
142.8
124.3
126.2
126.6
127.5
195.0
197.5
200.2
203.0
101,5
rlOl.8
101.9
102.3
175.7
178.7
179.6
181.3
170.3
169.8
172.1
176.3
173.8
175.6
177.0
179.6
ANNUAL
111.1
140.3
126.3
198.7
101.8
178,8
172,2
176.5
I
II
III
IV
111.6
111.9
112.6
112.7
143.6
144.6
145.9
145.9
128.6
129,2
129.6
129.5
205.5
208.3
' 211.0
r214.1
102.1
rl02.0
r!02.6
rl03.l
184.1
186.1
187,4
r!90.1
174,6
176.5
177.6
r!77.0
180,8
182.8
184.0
r!85.6
ANNUAL
112.1
145.0
129.4
r209.5
102.4
r!86.9
176.5
r!83.3
Percent change from previous quarter at annual rate(5)
1988
1989
I
II
III
IV
2.8
-1.6
3.3
1.9
4.8
4.4
4.6
4.8
2.0
6.1
1.2
2.8
2.5
5.4
5.4
5.9
r-0.9
rO.9
rO.5
rl.5
-0,3
7.1
2.0
3.8
3.$
-1.0
5.4
10. i
1,0
4.3
3.2
5.9
ANNUAL
2.0
5.4
3.4
4.7
0.5
2.7
2.}
2.7
I
II
III
IV
-1.3
1.1
2.4
0.2
2.4
2.8
3.7
rO.O
3.7
1.7
1.3
r-0.2
4.9
5.6
5,3
r6.0
-0.5
r-0.4
r2.4
rl.9
6.2
4.5
2.8
r5.8
-3.7
4,£
2.6
r-1.2
2*8
4.4
2.7
r3,4
ANNUAL
0.9
3.3
2.4
r5.4
0.6
r4.5
2.S
r3.8
Percent change from corresponding quarter of previous year
1988
1989
I
II
III
IV
3.0
1.8
1.7
1.6
6.1
5.7
5.2
4.7
3.0
3.8
3.4
3.0
4.2
4.9
5.1
4.8
0.3
1.0
0.9
rO.5
1.2
3.1
3.3
3.1
3.7
. 1..3
1.1
4.5
2.0
2.5
2.5
3.6
ANNUAL
2.0
5.4
3.4
4.7
0.5
2.7
2.7
2.7
I
II
III
IV
0.6
1.3
1.0
0.6
4.1
3.7
3.4
2.2
3.5
2,4
2.4
1.6
5.4
5.5
5.4
r5.4
0.6
rO.3
0.7
rO.8
4.8
4.1
4.4
r4.8
2.6
3.9
3,2
0.4
4.0
4,1
4.0
r3,3
ANNUAL
0.9
3.3
2.4
r5.4
0.6
r4.5
2.5
r3.8
See footnotes following table 6.
r=revised
March 7, 1990
Source: Bureau of Labor Statistics
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
Compensatlon per
hour(l)
Real
compensation per
hour(2)
Unit
labor
cost
Indexes 1977*100
1988
1989
I
II
III
IV
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
139.4
140.7
141.1
r!42.1
142.2
143.4
143.9
r!43.3
102.0
101.9
102.0
100.8
201.9
203.2
206.1
r209.6
100.3
r99.5
100.3
rlOO.9
144.8
144.4
146.1
147.5
140.3
143.2
102.1
r204.3
99,9
145.7
I
II
III
IV
ANNUAL
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
r2.1
r-2.2
r-0.6
rl.4
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
1.2
r2.8
3.1
3.5
1.4
r-1.6
0.7
-0.2
0.1
r-4.3
3.5
2,7
5.9
r6.9
-1.9
r-3.2
r3.0
r2.8
1.0
-1.0
4.6
r4.0
ANNUAL
2.8
3.7
0.9
4.3
-0,5
rl.5
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
rO.2
-0.1
1,1
1.0
1.5
ANNUAL
2.7
6.1
3.3
3.6
-0.5
0.9
I
II
III
IV
2.9
3.2
2.4
r2.5
5.3
4.7
3.3
rl.6
2.3
. 1.4
0.9
-0.9
3.9
4.0
4.4
r4.7
-0.8
-1.1
-0.2
rO.l
1.0
0.8
2.0
2.1
ANNUAL
2.8
3.7
0.9
4.3
-0.5
See footnotes following table 6.
r=revised
rl.5
March 7. 1990
Source: Bureau of Labor Statistic;;
-10-
Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor cost,
seasonally adjusted
Output per
hour
of all persons
Year and
quarter
Output
(6)
Hours
of all
persons
Compensation per
hour(l)
Real
compensation per
hour (2)
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
100.3
99.1
98.7
99.2
135.2
134.3
134.3
135.9
ANNUAL
142.8
145.0
101.5
192.6
98.7
134.9
145.6
147.7
148.3
P148.2
149.1
150.3
150.4
P148.6
102.4
101.7
101.4
100.2
198.8
199.6
202.7
T206.3
98.8
r97.8
98.6~
r99.4
136.5
135.1
136.7
r!39.2
146.5
149.6
102.1
r200.4
r97.9
r!36.8
I
II
III
IV
ANNUAL
„
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
r2.5
r-4.7
r-1.6
rl.9
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
r-0.4
2.2
3.2
0.4r-4.9
0.3
-2.5
-1.3
r-4.5
3.8
1.7
6.4
r7.3
-1.5
r-4.1
r3.4
r3.1
1.8
-4.0
4.6
r7.7
ANNUAL
2.6
3.2
0.6
r4.0
-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
r2.2
5.5
4.4
2.8
rO.2
3.2
1.2
0.0
-2.0
3.2
3.8
4.5
r4.8
-1.5
-1.4
-0.1
rO.2
1.0
0.6
1.7
r2.4
ANNUAL
2.6
3.2
0.6
r4.0
-0.7
1.4
See footnotes following table 6.
r=revised
March 7, 1990
Source: Bureau of Labor Statistics
-11-
Table 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
Compensat ion per
hour(l)
Real
compensat ion per
hour(2)
Unit
s
abor
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
130.5
r!33.1
131.8
133.1
134.1
135.4
101.3
102.2
102.8
101.7
207.2
209.7
212.4
T215.7
103.0
rl02.7
103.3r!03.9
159.3
160.9
162.8
rl62.0
ANNUAL
131.0
133.6
102.0
r211.2
103.2
161.2
Percent change from previous quarter at annual rate(5)
1988
1989
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
rl.4
rl.7
rO.8
rO.3
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
0.8
r8.3
4.7
4.0
3.1
4.0
1.4
3.3
2.3
r-3.9
2.9
4.9
5.4
r6.3
-2.4
r-1.1
r2.5
r2.2
-0.4
4.2
4.6
r-1.8
ANNUAL
3.1
4.6
1.4
r4.7
r-0.1
rl.5
I
II
MI
IV
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
rO.l
0.8
1.0
1.0
0.6
2.4
2.2
1.5
ANNUAL
3.1
5.2
2.1
4.8
0.7
V-7
I
II
III
IV
3.9
3.5
2.0
3.2
5.0
5.3
4.1
4.0
1.0
1.8
2.1
0.7
4.9
4.6
4.5
r4.9
0.1
-0.6
-0.2
rO.3.
0.9
1.0
2.4
rl.6
ANNUAL
3.1
4.6
1.4
r4.7
See footnotes following table 6.
r=revised
r-0.1
rl.5
March 7, 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
per alland
quarter empl oyee
hour
Output
Employee Hourly
Real
hours compensa- hourly
tion
compen(1)
satton(2)
Unit
labor
cost
Unit
nonlabor
cost (7)
Total
unit
cost
(8)
Unit Implicit
pro- price
fits deflator
(9)
(4)
Indexes 1977-100
1988
1989
IV
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
114.5
114.5
115.3
n.a.
145.8
146.5
148.1
n.a.
127.4
128.0
128.4
n.a.
200.2
202.8
205.5
n.a .
99.5
99.3
r99.9
n.a.
174.9
177.1
178.1
n.a.
196.9
200.1
203.9
n.a.
180.4
182.9
184.6
n.a.
119.6
116.6
113.5
n.a.
173.1
175.0
176.1
114.6
147.0
128.2
204.0
178.0
201.9
184.0
112.5
175.5
I
II
III
n.a.
ANNUAL
99.7
Percent change from previous quarter at annual rate(5)
1988
1989
IV
I
II
III
IV
3.9
0.4
1.3
-0.4
6.8
4.6
4.3
3.2
2.7
4.2
2.9
3.6
2.9
4.9
4.9
4.8
r-0.5
rO.4
rO.O
rO.5
-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
n.a.
-1.7
0.1
3.0
n.a.
1.0
2.0
4.3
n.a.
2.7
1.8
1.2
n.a.
-0.5
r-0.6
r2.5
n.a.
6.6
5.3
2.3
n.a.
7.5
6.7
7.7
n.a.
6.9
5.7
3.8
n.a.
-31.7
-9.7
-10.3
n.a.
2.8
4.3
2.6
ANNUAL
0.0
2.5
2.5
0.3
5.2
6.1
5.4
-12.7
3.8
4.9
5.4
5.4
n.a .
5.1
Percent change from corresponding quarter of previous year
1988
1989
IV
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
rO.l
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
n.a.
-0.1
-0.2
0.2
n.a.
3.2
2.6
2.6
n.a.
3.4
'2.8
2.3
n.a.
0.1
-0.2
0.4
n.a.
5.0
5.2
4.9
n.a.
4.9
5.9
6.7
n.a.
5.0
5.4
5.4
n.a.
-5.8
-9.7
-11.0
n.a.
4.0
4.0
3.9
ANNUAL
0.0
2.5
2.5
0.3
5.2
6.1
5.4
-12.7
3.8
See footnotes following table 6,
r=revised
4.9
5.0
5.1
n.a .
5.1
March 7, 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