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United States
Department
of Labor
Washington, D.C. 20210
Office of Information
L.J. Fu1.co
K.D. Hoyle
Home
(202) 523-9261
(202)' 523-1913
(202) 333-1384
•
USDL 78-981
For Release: 10:00 A.M. E.S.T.
Wednesday, November 29, 1978
PRODUCTIVITY AND COSTS
Nonfinancial Corporate Sector
Third Quarter 1978
Productivity increased 1.3 percent at a seasonally adjusted annual rate in nonfinancial
corporations in the third quarter, the Bureau of Labor Statistics
, of the U.S. Department of
Labor reported today.
During the second quarter, productivity increased 4.4 percent in this
sector, which includes all corporations doing business in the United States with the exception
of banks, stock and commodity brokers, and finance and insurance companies.
The third quarter
increase reflected a 1.5 percent'"increase in output and a 0.2 nercent increase in hours of
all employees.
In the second quarter, output rose 15.2 percent and hours,10.4 percent.
Revised third-quarter measures of productivity for the private business, nonfarm
business, and manufacturing sectors were al"so released today.
The revised measures show
productivity increased 3.4 rather than 4.5 percent in the private business sector, 2.3
rather than 3.7 percent in the nonfarm business sector, and 1.0.4 rather than ' lO.O percent in
manufacturing.
The third quarter measures of productivity and cost are summarized in table
A; details appear in tables 1-6.
With this issue of Productivity and Costs, BLS completes the introduction of revised
data for the private
USDL 78-883.
busine~s
and manufacturing sectors begun in the previous issue,
The productivity and cost measures contained in this press "release are
based entirely on revised series which incorporate the 1972 Standard Industrial Classification (SIC), and the March 1977 benchmark for these sectors; revised data for the
computation of measures for the nonfinancial corporate sector are also included here.
Historical data for the nonfinancial corporate sector--to 1958--are currently being
developed.
-2-
Table A. Productivity and CC'lsts:
(Seasonally Adjusted) .
Sector
Productivity
Percent Change at Annual Rate
Hourly
Compensation
Unit
Labor
Cost
Real
Hourly
Coapensat ion
Output
Hours
0.8
1.5
0.2
Second Quarter 1978 to Third Quarter 1978
PRELIMINARY
Nonfinancial
corporations
1.3
9.5
8.1
REVISED
Private business
3.4
10.4
6.7
1.6
2.9
-0.5
Nonfarm business
2.3
9.5
7.1
0.9
2.0
-0.3
10.4
10.6
0.2
1.9
9.2
-1.1
Durable
10.0
10.5
0.5
1.8
12.5
2.3
Nondurable
11.2
9.7
-1.3
hO
4.3
- 6.2
1.3
4.9
4.2
Manufacturing
Third Quarter 1977 to Third Quarter 1978
PRELIMINARY
Nonf inanc ia1
corporations
0.7
9.4
8.7
REvISED
Private business
0.1
9.3
9.2
1.2
4.1
4.0
Nonfarm business
0.3
9. 4
9.0
1.3
4.4
4.0
Manufacturing
3.1
9.6
6.3
1.5
6.6
3.4
Durable
3'.1
9.5
6.3
1.4
8.• 1
4.9
Nondurable
3.2
9.3
5.8
1.2
4.5
1.2
-3Compensation and costs
Hourly compensation, which includes wages, salaries, and employer contributions to
employee benefit plans and taxes, increased 9.5 percent in the third quarter.
Real hourly
compensation--compensation per hour adjusted for changes in the Consumer Price Index for
A~l
Urban Consumers--increased 0.8 percent, compared with a 2.3 percent decline in the second
quarter.
Unit labor cost, which is influenced by changes in productivity and hourly compen-
sation, increased 8.1 percent in the third quarter, compared with a 3.8 percent increase
during the second quarter (annual rates).
During the first quarter, these costs rose 15.3
percent, reflecting a 12.5 percent rise in hourly compensation and a 2.5 percent drop in
productivity.
Third-quarter measures of real hourly compensation, not available for the private
business, nonfarm business, and manufacturing sectors in time for inclusion in the last issue
of Productivity and Cost, are now available.
compensation
increase~
In the private business sector, real hourly
1.6 percent in the third quarter, compared with a 2.5 percent decline
during the second quarter (annual rates).
In the nonfarm
b~siness
sector, real hourly com-
pensation rose at a 0.9 percent annual rate, after posting a 2.4 percent decline one quarter
,
earlier. In manufacturing, the increase in real hourly compensation was 1.9 percent in the
third quarter, after declining 3.1 percent in the second quarter.
Unit profits rose 9.9 percent (annual rate) during the third quarter in the nonfinancial
corporate sector, compared with a 123.6 percent increa,!e in the second quarter.
In the
third quarter, the index of unit profits surpassed the previous peak .(set in tne third
quarter of 1977).
Aggregate profits (in contrast to unit profits) surpassed their previous
.......
peak during the second quarter of 1978.
The implicit price deflator, which shows the effect of changes in labor cost and
nonlabor payments combined, increased ?9 percent in the third quarter, compared with a 10.2
percent increase during the second quarter.
The implicit price deflator--and its components--
are shown in table B from 1973 forward.
Revised measures
Revised third-quarter productivity and cost movements for the private business, nonfarm business, and manufacturing sectors were also released today.
Incorporating the most
recent measures of output and hours for these sectors, the revised series show somewhat
I
"
.
Table B.
Indexes of Price, Cost and Profits
Nonfinancial Corporations
(1967-100)
,:
Measure
19}3
1975
1978
1977
1976
I
II
III
IV
I
II
III
125.8
140.2
154.9
163.2
168.4
171.8
174.5
176.3
178.6
183.0
186.5
132.8
152.6
165.9
172.0
178.8
180.8
182.5
185.6
191.5
192.6
196.2
Unit labor cost
130.7
148.8
158.6
166.5
174.3
176.8
178.5
181.9
188.5
190.2
194.0
Unit non1abor cost
139.2
164.4
188.5
188.8
192.6
193.1
195.0
197.1
201.1
200.1
203.3
85.6
69.5
91.8
112.7
108.8
120.1
128.3
122.9
104.5
127.8
130.8
I.p1ici~
price deflator
Total unit cost
•
1974
Unit profits
I
~
--
I
':i~
-5-
smaller gains in productivity--and larger increases in hourly compensation and unit labor
cost--than were previously reported for the private business and nonfarm business sectors,
based on preliminary data.
Table C shows the preliminary and revised measures.
"
-6-
Table C
Preliminary and Revised Third Quarter Measures of Productivity and Costs
Quarterly Change at Annual Rate
(Seasonally Adjusted)
Measure
Private Business Sector
Nonfarm Business Sector
Manufacturing
Pre1im1nary
Revised
l're.L1minary
Revised
preliminary
Revised
Output per hour
of all persons
4.5
3.4
3.7
2.3
10.0
10.4
Compensation per
hour
9.8
10.4
8.9
9.5
10.5
10.6
,
.
6.7
5.0
7.1
0.5
0.2
N.A.
1.6
N.A.
0.9 •
N.A.
1.9
Output
3.8
2.9
3.3
2.0
8.7
9.2
Hours
-0.6
-0.5
-0.4.
-0.3
-1.2
-1.1
Unit labor cost
5.1
Real compensation
per hour
.
,.
.
"
-7-
"Productivity Indexes for Selected Industries, 1978 Edition," BLS Bulletin
2002, has been prepared by the Division of tndustry Productivity Studies
and is noW available.
ntis 247-page bulletin contains annual indexes
of output per employee hour, output,and employee hours for about 75
industries in the nonfarm sector.
industries through 1977.
The indexes are available for most
BLS Bulletin 2002 can be ordered from the
Superintendent of Documents, U. S. Government Printing Office, Washington,
D. C. 20402 (Stock No. 029-001-00241-7), GPO Bookstores, or BLS Regional
Offices listed below.
The price is $4.50.
Make checks or money orders
payable to the Superintendent of Documents.
REGION I
1603 JFK Federal Building
Government Center
Boston, Mass. 02203
• REGION V
9th Floor
Federal Office Building ·
230 S. Dearborn Street
Chicago, Ill. 60604
REGION II
Suite 3400
1515 Broadway
~ew York, New York 10036
REGION VI
Second Floor
555 Griffin Square Building
Dallas, Tex. 75202
REGION III
3535 Market Street
P. O. Box 13309
Philade1phia,Pa. 19101
REGIONS VII AND VIII
911 Walnut Street
Kansas City, Mo. 64106
REGION IV
1371 Peachtree Street, NE. '
Atlanta, Ga. 30309
REGIONS IX AND X
450 Golden Gate Avenue
Box 36017
San Francisco, Calif. 94102
For W it by the Superintendent or Documents, v,s. Oovetnme nt PrinUna
1I'1IIII1",t011, D.C. ~102
omce •
Stock Number o:.'U-OJHlO2'I-7
.......
._....,..
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r()MP~_ "':5/l TlnN. lJiIIJT L/lHO~ e(l<:T. A~!O P~ICEC;. SEASO"lALLY AOJIISTEO
• 11, ~LY
REAL
YF.:td~
(J ilil 0/
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OF ALL
J)F:RS(l ~ ')
I-'f _ '"'~ ( , ' ~
CO~~ PfNSA-
CO~PENSI\
1 I O~I fJER
liON PEH
"lOUH(?)
I-lOII!J(I)
UNIT
LABOR
COST
(iNIT NON- ,
LABOR PAY""ENT5(3) ,
IMPLICIT
PRICE
DEFLATOR
----------------------------------------------------------------------------I
) 96 7=100
~O E)(F:C;
2(l7.!:>
117.?
17b.0
I1b.4
11l.Q
rIO.5R215.3
2'18.8
117."
1IR.?Q
17Q.3
IJ11.1
11'3.9
IbO.3R
164.0
167.0
167.8
170.t.
174.0
176.3
17A.4
133.2
112."~
213.0
117.4
lAO.2
164.7
174.9
117.6
118. u
13:'.)
138.7
115.0
117.r,
??5.2R
;:>?9.6
leH .4
194.b
11~.0"l
Ij9.7~
117.4
?l5.3~
119.3
11R.hR
119.0
162.1
171 ~3
175.3R
IIH .3
186.6
190. 0R
117 . 4
117 . 4
1 11'4 . '7
130 . 5
132.5
134 .2
11 0 .7
112. 9
11~.O
13!:>.~
H II" UAL
111;.2
J
II
1977
II
III
III
1971'
III
112. q
197.8R
PEHCENT CHANGE FPOM f>QEVTOUS QUARTER AT ANNUAL RATE (5)
I
c. ~
~.3
h.r,
II
-) .7
III
IV
5.1
0 .4
6.5
5.0
4.0
8.1
-0.1
.~ . 3.7
7.9
5.8
9.'5
1').7
-0.3
-2.7
4.3
I.e)
5.3
7.6
4.2
6.3
4.9
9.5
7.4
2.0
5.2
8.2
5.2
4.9
IIIIINUAL
1.A
!) .3
3.7
8.1
1.t.
6.4
4.2
5.7
I
II
-4.5
-0.6
10.5
2.9R
4.0
12.1
R.1
10.4R
17.4
6.8
6.7R
-13.1
24.8
9.7R
6.7
12.1
7.7R
1977
197R
1. t'
III
3.4Q
-----
----------
1 en7
I
<,.e
II
I .1
1• ~
ITT
IV
A ~ 'NI JAL
I'Hf<
----'iF t.
F,"~ T '. : ) 'r )
"r
M: ......
<';1' ,;
P =I-' 1< :: Ln' l ' . .,,; "
r
.....
2.7
1. "
1.3
0.7
6.4
6.9
6.5
S.8
2.3
3.6
5.0
5.9
5.0
5.8
4.0
4.6
8.7
I
A.O
7.5
3.7
tI.l
1."
t..4
4.<'
<;.7
7'
3 .'1
Ii.!,!
'j .
l.q
H.5
~ . J~
I.?
Q . ?~
1• 1
".4
5.0P
t..3
4.1
4.
Ii."1
1.11
... r,
4 . 1 ....
~.?
l.~
!).6
6.2
1 • (,
~.)
' • 1 .~
4.0
-2.5
1.6
PERCENT CHANGE FROM CORPF:SPONDING QUARTER-OF PREVIOUS YEAR(61
3.Q
Ii . ,
; 1I
-0. 5H
~.O
- i' . "
;T
9.;>
j.
Ii .
"'.0
5.q
7.2
7.RR
--------------------- ---_ I- -------------------~
r ; ! J . t ~ t- 0' •
~l
NOVEM~ER
?~.1978
<;OIIH CE: RI)REAU OF LAROR STATISTICS
<.
l~~Lt
H ),
~ .
C r.~·p ~
~ O NF A ~M HUSIN~S5 SF CTOR, ALL PERSONS: PRODUCTIVITY,
"'S 1\ T I (I N, U'" IT L 4ijOP CPC,T, AND PR I CI: 5, SF.: ASONALL Y ADJUSTED
fjUT PtfT
,)1' !t-JlfT Pf : l,
YF AM A ~'J Ii
.JI,) AMHP
~ ~.
' I-'L"
of ALL
PFRSO ' ,S
lo1l\ !IW
\.I F II LL I-'FI-' S f'hI S
f..
I-t()UI'c.
r.r)t-4PENSATIll'" PER
HOU1:1(11
QEAL
COMPENSATION PFR
HOUR(21
UNIT
LABOR
COST
UNIT NONLABOR PAYMENTS(31 '
I MPLI r. IT
PRICE
DEFLATOR
-------------------------------I;::Ou:~-I-q-67-=1:"':0~0---------------------------,
IQrr
l
Q
II!)./)
11 S .2
I
II
I 1I
IV
ANNUAL
78c
I
Jt
III
157~7R
2]1.2
2'15.1
115.]
114.5
115.3
116.2R
176.4
179.8
181.1
1134.8
161.7
166.1
165.1
170.0
173.6
176.4
178.1
115.4
209.3
115.3
180.8R
162.6R
.174.6
1 n.8
120.6
120.5
21'1.4
225.8
231.0R
1'11.3
116.6
116'.9
191.7
159.2
167.1
P1.7R
180.6
185.3
113.3R
116.2
1 P,.4
LB."
13J.O
134.6
135.8
116.7
115.1:\
133.6
115.5
116.0R
11 6 ." R
13tl .1
139.8
140.5R
115.5
115.flR
2(13.9
2(17.1 .
lq4.7
198 '. lR
H~q.lR
PERCENT CHANGE FROt-4 PREVIOUS QUARTER AT ANNUAL RATE(5)
1 Q-77
HI
IV
2.4
-1.4
3.7
0. 5
5.0
3.5
A"'NUAL
1 .:3
-3.1
1.7
2.3M
I
Tl
\\
~.
\
3.0
8.3
6.5
8.1
7.6
-0.0
-2.1
, 2.q
2.8
5.8
8.0
4.2
7.1
1.5
10.3'
11.5
-2.4
4.4
8.7
6.5
4.0
5.2
3.9
8.1
1.5
6.7
4.3
5.9
0.7
11.6
2.0R
3.9
9.8
-0.3Q
12.2
8.2
9.5R
'1.4
b.?
6.13
7.1
1.3
~.
1'11 8
IT
I I I
4.0
-2.4
O.Q
15.7
6.4
7.1R
-13.5
21.3
11 .... P
5.8
10.8
8.SR
PER CEtH CHANGE FR(jt-4 r.OHRFSPOt-.lDING QUARTER OF PREVIOUS YEAR (61
1977
I
II
III
.2 . 3
0.• 1
4.7
4.8
f: _
~.4
Iv
1 • 'i
6.0
4.1
4.4
4.1
/I f\!'IIUAl
1.3
S.2
3.9
I
II
III
- 0. 1
3.fi
'-:J.l
. . . 4"';
19 7"
i: • ,
I • •
--------------,
SU:: H l(1T 'ij UTES
~ tlLl".·· l . (;'
M=N E. )C.t 0
j.J= j.J ~~ Lr ~ I N A~~
Q
..:t~
T ... Y i_t-"
~ .
;>.3
8.7
B.l
7.8
2.7
1.2
1.1
2.7
4.0
5.5
5.0
5.1
O.Q
6.3
7.3
6.8
6.3
8.1
1.5
6.1
4.3
5.q
3 .9
4.5
8.6
9.0
l.q
8.7
8.3
0.9
I.A
"'.2
.... 7
4. ,)
9.4P
1.~
9.0H
7."
----------------------------,
3.4
3.4P
"'~2
6.4
5.9
7.2R
NOVE"'HE~ 2~' 1978 '
SOURCE: PUREAU' OF LA80R STATISTICS
"
rl\~Lr:
3.
t-! I)",~
.
INANClAL COf<POHATIONS: PRODUCTIVITY, HOURLY COMPENSATION
ANO PIHCfS. SEASONALLY ADJUSTED
IJNi T LArin .. CuST, UNIT P~OFITS.
. vFH(
fJuTfo'lir
·ALL-
At-ID
1'1::;'
I"J I I A~TE~
E. ~ PLovE!:.
EM"'LUYEE
OIlTPUT
HOUk~
HOURLY
COMPENSATIU N
(11
' 11)1.11<
REAL
~OURLY
COMPEIIjSATION(2)
'INIT
LAHOR
r.OST
UNIT
NONLABOR
COST(8)
TOTAL
UNIT
COST
UNIT
PROFITS
(9)
(10)
IMPLICIT
PRICE
DEFLATOR
lN OfXES 1967=100
lQ77
174.3
176.8
178.5
18'1.9
192.6
193.1
195.0
197.1
178.8
180.R
182.5
185.6
108.8
120.1
128.3
122.9
168.4
171.8
174.5
176.3
.194.5
182.0
120.2
172.8
191.5
192.6
196.2P
104.5
127.8
130.8P
178.6
183.0
186.5P
117. 7~
117.f,~
ANNU .4L
11f,.9R
141.('1
120.6R
208.0R
114.6R
)77.9
I
116.9~
II
III
l1A.1R
IlA.5P
143.0
148.R
149.3P
122.9R
126.0R
126.0P
220.?R
?24.7R
229.RP
116.7R
116.0R
11b.3P
188.5
190.?
194.0!'
1l0.(I~
Ilf..5~
11H.~R
120.7R
1~0.9R
-------
201.1
. 200.1
203.3P
PERCENT CHANGE FROM PREVIOUS QUARTER AT ANNUAL RATE(5)
~1.4H
7 • 1f.~
8.5R
7.2R
-I.OR
3.3R
2.4H
5.0
5.8
3.9
7.7
-0.7
1.0
3.9
4.·3
3.5
4.6
3.9
6.8
12.9
48.2
30.4
-15.8
4.3
8.3
6.4
4.2
6.6
5.9
IV
-O . 5R
ANNUAL
1.21'1
5.4
4.2R
8.IR
1.6R
6.8
3.0
5.8
-I
II
III
-2.51'1
-0.0
I!:I.2
1.5P
2.5R
10.4R
0.2P
12.5R
8.3R
9.C;P
4.3~
-2.3R
O.RP
15.3
3.8
8.1P
8.5
-2.0
t'I.5P
13.6
2.3
1.7~
1.7 R
4. 4 ~
4.41'1
1.3P
8.1R
7.4R
O.7R
4.2R
6.RR
9.9
9.2
5.0.>
3.6
I
II
III
1978
114.1R
113.9R
114 .. 8H
115.5R
III
IV
1978
1977
122.1R
202.2R
205.9R
210.2R
213. R R
1.H.5
J40. 5
14£.3
14J.tl
I
If
7.7P,
-47.8
123.7
9.9P
5.5
10.2
7.9P
PERCENT CHANGE FROM CORRESPONOING QUARTER OF PREVIOUS YEAR(6)
l'HfI
8.5R
8.3R
B.OR
7.5R
2.5R
1.4H
- 7.5
7.6
5. 9
"1.(1
2.9R
4.2R
4.!:iR
5.UR
1.3J.l
.6.b
0.8k
l.l~
5.4
4.2Q
8.1R
o.~~
4.5
3.7R
1.4~
S.q
4.4~
n. ·7 P
4.91'>
4.2P
8.9R
9.IR
9.4,P"
I
o.g ~
3.9
II
O.f-R
4.~
III
1. 3 ~
IV
1.~R
ANNUAL
I
II
III
1917
SEE 1-00T'IIOT£5
R-RfVISElI
P=P~ELJ"'lNARY
~OLLII\ojI ''' G
TARLE
5.2
6.2
5.6
4.7
-5.3
3.9
11.9
16.4
3.0
5.8
6.6
5.9
4.4
3.6
4.3P
7.1
6.6
-4.0
6.4
1.9P
5.6
3.5
3.3'
3.0
2.1
1.6R
6.8
2.2H
I.9R
1.3P
A.l
7.6
8.7P
6.4
6.'5
7.5P
b.3
5.8
6.1
6.5
6.9P
~.
NOVEMBER 29,1978
SOURCE: 8UREAU OF LAB9R STATISTICS
~-
..
~
TAtiLE _. MANUFACTURING SECTOR: PRODlICTIVITY. HOURLY
UNIT LAROR CUST. SEASONALLY ADJUSTED
CO M ~l~SATIUN.
REAL
YF.:AI-l AN D
QtJARTfR
PER
HO UR
QUTPUT
our~UT
OF
~ LL
(7)
PERSON~
HOURS
OF ALL
PERSONS
COMPENSATION PER
HOUR ( 1 )
CO~PENSA
TION PER
HOUR(;?)
UNIT
LABOR
COST
---------------------------------------------------------I NDEXES 1967=100
1977
I
II
111
IV
ANNUAL
1978 '
123.7
127.6
127.5
lc2.6
126.6
128.6
129.8
99.1
100.7
100.8
101.'8
205.6
209.7
- 214.4R
218.9
-116.1
116.0R
117 .1
118.2
166.3
166.9
16"8.0
171.7
126.1
126.9
100.6
2 12.2
116.9
168.3
1?5.9R
128.4
131.6R
\29.7
134.1
137.1R
103.1
104.5
104.2
225.0,
2?9.1
23S.0R
1?~.6
I
II
III
------
119.2
118.3
• 118.8
178.8
1'78.5
178.6R
PERCENT CHANGE FROM PREVIOUS QUARTER AT ANNUAL RATE(S)
I
II
III
IV
-0.6
6.4
6.5
-0.3
7.7
13.7
6.6
4.0
8.3
6.8
0.1
4.3
9.9
8.2
9.2
8.8
1.4
-0.6
3.9
4.0
10.5
1.6
2.5
9.1
ANNUAL
2.3
c.3
3.q
8.8
2.2
6.3
-5.1
8.3
10.4R
-0.5
14.3
9.2R
4.9
506
-101R
11.6
7.4
10.6R
3.5
-3.1
1.9R
17.7
-0.8
0.• 2R
1971
19714
I
II
III
PERCENT CHANGE FROM CORRESPONDING QUARTER OF PREVIOUS YEAR(6)
19H
2.~
4.0
6.1
7.1
7.9
2.4
4.2
4. 1
4.8
8.8
8.3
8.9
9.0
2.8
1.4
2.1
2.2
7.1
6.2
5.8
5.9
A~'N UAL
2.3
6.3
3.9
8.8
2.2
6.3
I
11
III
I 'oR
5 .. 8
1'02
6.0
6.6R
4.0
307
3 04
9.4
9.2.
9.6
2.7
2.0
1.5
7.6
6.9
6.3R
I'H~
-----SE E
I
IT
III
IV
,1.6
1.9
2.9
FOOT NH TE~
301~
F O lL O WI ~ G
r4 ~ LE
b.
NOVEMAER 29.1978
SOURCEt BUREAU OF ' LABOR STATISTICS
~=r< E. "t"f'iJ
P= -- >l f.L lI ' ! "l I\PY
'
~
'.
""L' ,. O".,OL' .,"UFAC,UR!NS s,crO_
COM~ENSATION.
YFAM ANLJ
QII/lRTER
OIIT~IJT
fJl~
O.UT~lJT
(1)
H(1l' R
of /ILL PF.kS()NS
OUClI'ITY. HOURLY
UNIT LABOR COST, SEAS
HOURS
OF ALL
PERSONS
. ".
ALLY ADJUSTED(II)
CO"1PFNSATION PER
HOllR (1)
REAL
COMPENSATION PER
HOUR(2)
207.1R
211.8R
2i6.4R
2?I.SR
Ilr1.9
117 .IR
118.2R
119.6R
17S.7
17S.9
171.5
182.2
214.3R
11a.o
177.9
227.0R
12n.3R
119.4R
119.9
190.1
UNIT
LABOR
COST
INDEXES 1961=100
19"77
I
It
III
III
117.9R
120.4
121.9R
121.6~
116.3
121.0
123.5
124.8
ANNUAL
120.5~
121.4
I
II
III
119.4
122.7R
125.ttR
124.4
129.5
133.4R
98.7
100.5R
101.3
102.1
(
1978
·100.8
104.1R
105.6
106.2
231.~R
237.0R
188~4
188.7~
PERCENT CHANGE FROM PRE"IOUS QUARTER AT ANNUAL RATE(S)
1977
I
II
III
-1.9
8.9
5.0
-1.1
ANN.lJAL
1.9
I
II
-6.8
11.3
III
1978
III
8.3
4.5
9.0
7.6
3.1
5.7
11.1
9.4
9.0
9.8
2.6
0.5
3.8
4.9
13.2
0.5
3.8
11.0
7.1
S.2
8.8
2.2
6.8
-1.5
11.7
12.5R
5.7
5.7
2.3
10.4
7.5
10.5
2.4
-3.0
1.8R
18.5
-3.4
0.5.R
6.9
1f .1
lO.UR
fJ[ReENT CHANGE FROM CORRESPONDING QUARTER OF PREVIOUS YEAR(6)
1977
I
III
IV
1.'1
1.6
2.0
2.b
5.0
6.9
7.r:;
9.1
3.9
5.?
5.4
6.3
8.2
. 8.2
9.0
9.8
2.2
t.3
2.2
2.9
7.0
6.5
6.8
7.0
A~INUAL
] .9
7.1
5.2
8.8
2.2
6.8
1.3
1. '1
6.9
7.0
3.1~
8.1~
5.5
5.1
4.9R
9.6
9.2
9.5
iI.9
1.9
1.4R
8.2
7.1
6.3R
II
197h
I
II
~
III
SEE FuOTNOTES
R=HlvISEU
~=PR E LI~INjlRY
FOLLOwl~r,
TA~L~
6.
,
--
NOVEMBER 29,1978
SOURCE: BUREAU OF LABOR STATISTICS
TAIRE 6.
YFAR AND
QUAHT£R
OUTPIlT P~R
HOUR
OF ALL PEkSONS
1918
MANlIFACTURING SECTORI PRODUCTIVITY, HOURLY
UNIT LAAOR COST, SEASONALLY ADJUSTED(12)
HOURS
OF ALL
PERSONS
OUT"'UT
171
---1911
•
NUNDU~A8LE
C(lM~E~5ATION,
..
COfolPENSATION PER
HOUR (1)
REAL
COMPENSATION PER
HOUR(2)
UNIT
LABOR
COST
INDEXES 1961=100
I
II
III
IV
133.1
134.1R
136.9R
131.3
132.6
135.5
136.9
138.0
99.1R
101.0
100.0R
100.5
203.4 .
206.3R
210.6R
214.0R
l14.AR
114.1
ll5.0R
115.6
152.8
153.9
153.8
155.9
"AIIINUAL
135.3R
135.1
100.3
20S'.6R
l1S.0
IS4.2
I
II
III
136.4
131.1
141.4R
138.3
141.5
143.0R
101.4
102.8R
101.1
221.0
224.8R
230:1R
111.1
116.1
tl6.4R
162.1
163.3
162.8
PERCENT CHANGE
FRO~
PREVIOUS QUARTER AT ANNUAL RATE(S)
111
IV
1.3
3.1
8.6
1.0
8.8
9.0
4.1
3.2
1.4
5.1
-4.2
2.2
1.6
6.0
8.5
6.1
-0.1
-2.6
3.3
1.9
6.2
2.8
-0.1
5.6
AN~UAL
3.1
" 5.1
2.0
8.3
1.1
5.0
3.BR
5.3
-6.2R
13.6
1.2
9.1R
S.3R
-3.3
leOR
16.6
3.2
1911
I
II
191fl
-2.tt
3."9
11.2H
I
II
II I )
1.1
9.4
".3R
-l.~R
PERCENT CHANGE FROM CORRESPONDING QUARTER OF PREVIOUS YEAR(6)
III
IV
2.3
2.4
... 1
3.5
2.6
5.1
6.6
6.2
0.3
2.6
2.4
2.1
9.4
8.1
8.3
1.2
3.3
1.3
1.5
0.5
6.9
5.6
4.0
3.6
ANNUAL
3.1
5.1
2.0
8.3
1.1
5.0
2.5
2.6
3.2R
4.3
4.4
1.8
1.1
1.2R
8.1
9.0
9.3R
2.0
1.8
1.2R
6.0
6.1
5.8R
I
1917
II
1918
I
II
III
SfE FOOTNOTES
RaREVISED
P=PRf.LY"'INAHY
~OLLO~ING
TABLE
4.5~
~.
~'
NOVEMBER 29,1918
SOURCEI BUREAU OF L)BOR STATlsTICS
'-
FOOTNOTES, TABLES 1-6 ·
,<,' ;
T
SOURCE: OUTPUT OATA fROM ~UREAU OF ECONOMIC ANALYSIS, U.S. DEPARTMENT OF
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.
CO~~ERCE,
(11
WAGES AND SALARIES OF EMPLOYE~S pLus EMPLOYERS" CONTRIBUTIONS FOR SOCIAL
INSURANCE ANO PRIVATE BENEfIT PLANS. EXCEPT FOR NONFINANCIAL CORPORATIONS,
WHERE THERE ARE NO SELF-EMPloOYED, DATA ALSO INCLUDE AN ESTIMATE OF WAGES,
SALARIES, AND SUPPLEMENTAL PAYMENTS FOR THE SELF-EMPLOYED.
.
(21
COMPENSATION PER HOUR ADJUSTED FOR
ALL ~RBAN CONSUMERS.
(31
NO I ~LABOR
."1,
( 41
C~ANGES
IN THE CONSUMER PRICE INDEX FOR
,
PAYMENTS INCLUDE PROFITS, DEPRECIATION, INTEREST, RENTAL INCOME,
ANIl INDIRECT TAXES.
· CUFRENT DOLLAR GROSS PROOUCT DIVIDED BY CONSTANT, DOLLAR GROS!i PRODUCT.
(51
PERCENT CHANGE COMPOUNDED AT ANNUAL RATE FROM THE ORIGINAL DATA RATHER THAN
INDEX NUMBERS.
(6)
CURRENT QUARTER DIVIDED BY COMPARABLE
(71
QU~RTERLY MEASURES ADJUSTED TO ANNUAL ESTIMATES OF OUTPUT (GROSS PRODUC~
ORIGINATING) FROM THE BUREAU OF ECONOMIC ANALYSIS. U.S. DEPARTMENT OF
COMMERCE.
(8)
UNIT NONLABOR COST INCLUDE DEPRECIATION, INTEREST, AND
(9)
TOTAL UNIT COST IS
TH~
Q~ARTER
A VEAR AGO.
INDIRE~T
TAXES.
SUM OF LABOR AND NONLABOR COSTS.
(101 UNIT PROFITS INCLUDE CORPORATE PROFIT AND INVENTORY VALUATION
ADJUSTMENT.
S~CTOR INCLUDES THE FOLLOWING 2-DIGIT SIC INDUSTRIES'
PRIMARY METAL' FABRICATED METAL PRODUCTS' NONELECTRICAL MACHINERY'
ELECTRICAL MACHINERY I TRANSPORTATION EQUIPMENT' INSTRUMENTS' LUMBER
AND LUMBER PRODUCTS' FURNITURE AND FIXTURES, · AND MISCELLANEOUS
MANUFACTURES.
\
1111 THE . DURABLE
(12)
THE NONDURAbLE · SECTOR INCLUOES THE FOLLOWING 2-DIGIT SIC - INDUSTRIESt
TEXTILE MILL PRODUCTS; APPAREL PRODUCTS' LEATHER AND LEATHER PRODUCJSI
PRINTING AND PUBLISHING' CHEMICALS AND CHE~ICAL PRODUCTS I PETROLEUM
PRODUCTS; RURRER A~D PLASTIC PR6DUCTS, FOODS' AND TOBACCO PRODUCTS.
( 13)
SC~EDULING OF THE RELEASE OF THE NEW CONSUMER PRICE INDEX FOR ALL
URBAN CONSUMERS (CPI-U) PRECLUDES THE USE OF REAL HOURLY COMPENSATION
(H OURLV COMPENSATION ADJUSTED FOR QUARTERLY CHANGES IN THE CPI-U)
wITH PRELIMINARY PRODUCTIVITY AND COST MEASURES. THESE WILL BE
PURLISHEO iOGETHER WITH REVISE ~ OUTPUT -ANn LABOR INPUr MEASURES WITH
THE NEXT REGULAR EDITION OF PRODUCTIVITY ~ND COSTS, ' APPROXIMATELY
30 DAYS AFT:ER THE PRELI~INARY MEASURES.
'
1
Chart 1. Product.ivity, hourly compeMatfon, unIt costs and prices
tn the private business sector
(percent change from preceding quarter ot annual rote)
1
1
Outpu~
rri
per hour of all person,s
3.i
15
10
5
0
-5
1
-------~-1
1
1
-UJ
~
1
Compensati on per hour of a It persons
III
10. i.
1
1
1
1
1
I
1
I
I
I
1
-------~--------~-------+-------~--------~-------~---------I
I
I
·
I
1
I
II
Un it I abor cost
rII
6.7
1
1
1
I
I
-------~-------~-------+--1
I
I
I
1
1
I
1
I
I
1
I
10
5
0
20
15
10
I
I
I
~--------~-------~--------I
1
I
1
1
Un it non I abo r poymen fs
~
15
l
:
5
0
-5
IH
9.7
1
I
I
t
35
30
25
20
15
10
5
0
-------j--------r - ----T------- I
I'
1
1
I
1
1
1
I
I
:1
II
I
1
J
I
I
-5
1
1
-10
-15
I
nr
I mp Ii c it pri ce defl ator
7.7
10
1
I
--------I
J
1
1
I
1
I
-------i-------~---~---+-------~--------~-------i----------
1972
1973
1974
20
15
1975
1976'
1977
1978
5
0
Cha rt 2. P r oduc H v It y. hou rl y compensQ tl on, un It cos ts and p ri ces
in the nonfarm business sector
(percent ohange from precedino quarter at annual rate)
Outpu~ per hour of a!'
1
·1
1
1
1
1
1
1
1
1
nr
persons
2.3
1
15
10
I
- -----t--------T
--------t-1
5
0
1
1
1
~5
I
-10
Compensa ti on
hour of all persons
UI
9. S
1
1
""_---;'
1
1
1
1
1
1
I
I
I
1
I
1
I
-------~-------~-------+-------4--------~-~-----~---------1
1
1
1
1
j
15
10
5
0
1
Un it I abor cost
tn
:
7.1
I
1
I
1
1
1
1
1
1
-~-------~-------+--1
1
I
1
1
1
1
..
1
1
1
1
Un it non I abo r paymen t s
25
20
15
10
5
0
-5
tn
11.8
30
25
20
15
10
5
1
1
1
-----T-------
-------.,1
1
0
I
1
1
1
I
1
I
1
-.s
1
1
1
1
1
1
1
-10
-15
Implicit price deflator
Jrl
8.S
20
15
10
5
0
1972
1973
1974
1975
1976
1977
1978
Cha rt 3. Pr oduc tl v It y, hou rl y companaa tl on, un It co. t. and p rl ces
Tn nonflnancTal corporatIon.
(percent change from acme quorter
year ago)
0
Output per hour of a
I
i
,
0.1
I
I
I
I
I
.:;
III
employees
,,
,
,
~,
,
-------4-------,
,
10
I
5
I
,
I
-------4---------,I
----~-------I
I
,
I,
I
I
I
I
I
I
I
I
Compensa ti on pe r hou r 0 f a II employees
I
I
0
I
I
I
II
,,,
,
*'
15
I
-5
III
9.4
15
I
I
,
I
I
10
5
I
I
I
I
,
,
I
I
0
-------~--------~-------+-------~--------~-------~---------I
I
I
I
I
I
I
,
,
Un it labor cost
I
I
I
I
,
,
III
8.1
15
I
I
10
5
I
I
- ______~ ________ I _______
~
~
I
I
I
I
I
~
_______
~
________ L _______ J I ________ _
,
I
,
0
I
I
Un it non I abor payments
III
I
I
I
25
3.5
I
I
20
.'
I
I
15
I
I
I
I
I
I
I
I
~
I
I
10
5
I
-------4-------~-------~-------~--------~-------4---------I
I
I
I
I
I
I
,
,
I
I
I
I
,
I
I
I
I
,
I
I
I
I
,,
111
6.9
I
* Data
-5
15
10
5
J
1972
0
,
I mp Ii c it pri ce defl ator
I
"
0
1973
1974
1975
prior to 1972 are unrevised
1976
1977
1978
...
Chart 4. Unit co'. t., unIt profit •• and prrces rn nonfinancIal
co rpora tt ona
(percent change from aame. quarter
Q
yeor ago)
f
1
I
1
I
Un it I abo ( cos t.
1
1
____ ---1--------L..--- ____ +_______
1
1
I
I
I
1
I
I
1
1
III
8.7
1-- - - ____ ~---- -.: _-1 _________ _
I
I
Un it non I cbor cost
,
1
I
4.3
I
1
,y!
0
1
,
1
I
1
I
30
10
-------~--------~-------.-------~-~~~.
I
0
20
1
1
10
III
:
I
j
20
-10
Total unit cost
III
7.5
I
I
1
I
,,
,
20
15
10
I
I
1
I
5
I
1
,
_______
__
_ _ _ _ _ LI. _______
. . _ _ _ _ _ _ _ _L
I
'
~
1
,
I
I
I
I
1
1
1
I
I
I
1
Unit profits
~
________ L _______
1
,
1
1
,
I
I
I
~
_________
_
•
0
1
I
1
I
1
I
I
I
III
1.9
80
70
f
I
60
f
I
1
50
1
I
I
40
I
I
I
I
-l.1
I
I
I
I
I
I
I
I
I
----~------...I
I
I
1
I
1973
10
--
-10
I
I
-20
I
-30
1974
1975
Data prior to 1972 are unrevised
0
I
I
I
I
1
1972
20
I
-------4--,
,
,.
*
30
I
I
I
1976
1977
1978
@FedFRASER