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News
Bureau of Labor Statistics
Lawrence Fulco
Kathryn Hoyle
United States
Department
of Labor
Washington, D.C. 20212
(202) 523-9261
(202) 523-1913
-2Table A. Productivity and costs: Percent change at annual rate
(Seasonally adjusted)
Sector
USDL 80-530
For Release 10:00 AM EDT
Wednesday, August 27, 1980
PRODUCTIVITY AND COSTS
Productivity
Hourly
compensation
Unit
labor
cost
Real
hourly
compensation
Output
Hours
First quarter 1980 to second quarter 1980
PRELIMINARY
Nonfinancial
corporations
-1.1
Private business
-1.9
Nonfarm business
12.3
-2.3
-10.7
-9.8
11.9
14.1
-1.6
-11.3
-9.5
-2.9
10.7
14.1
-2.6
-11.5
-8.8
11.1
REVISED
NONFINANCIAL CORPORATE SECTOR
SECOND QUARTER 1980
Productivity in nonfinancial corporations declined 1.1 percent.In the
-4.5
15.2
20.7
1.3
-21.7
-18.0
second quarter of 1980 at a seasonally adjusted annual rate, the Bureau of Labor
Durable
-2.8
16.2
19.6
2.2
-25.2
-23.0
Statistics of the U.S. Department of Labor reported today.
Nondurable
-7.7
15.5
25.2
1.6
-16.6
-9.7
The decline
Manufacturing
reflected a 10.7 percent drop in output and a 9.8 percent drop in employeehours.
Second quarter 1979 to second quarter 1980
PRELIMINARY
The decline in output was the largest ever recorded in this series
(which starts in 1958) and the decline 1n hours was the largest since the 13.7
percent drop in the first quarter of 1975.
The decline 1n productivity in this
Nonfinancial
corporations
-0.5
sector was the sixth consecutive quarterly drop, and the largest since the
second quarter of 1979.
Productivity declined for 7 consecutive quarters in
1973-74, the only longer period of decline in this series.
During the first
quarter of 1980, productivity declined 0.1 percent 1n this sector, which
includes all corporations doing business 1n the United States, with the
exception of banks, stock and commodity brokers, and finance and Insurance
companies.
Although the productivity measures relate output to the hours of all persons
engaged in each sector, they do not measure the specific contributions of
labor, capital, or any other single factor of production. Rather, they reflect
the joint effects of many influences, including new technology, capital investment, the level of output, capacity utilization, energy use, and managerial
skills, as well as the skills and efforts of the work force.
10.3
-4.1
-2.0
-1.5
9.9
11.0
-3.8
-2.0
-1.0
9.7
REVISED
Private business
-1.0
Nonfarm business
-1.2
9.8
11.2
-4.0
-2.1
-0.9
Manufacturing
-1.4
10.5
12.1
-3.4
-6.6
-5.2
Durable
-2.4
11.1
13.7
-2.9
-8.9
-6.7
Nondurable
-0.2
10.1
10.3
-3.8
-3.1
-2.9
-4-
-3Revised second-quarter measures for the private business, nonfarm business,
and manufacturing sectors were also reported today.
The productivity declines
Unit profits declined 28.2 percent in the second quarter, compared with a
10.9 percent decrease during the f i r s t quarter.
This was the largest quarterly
in the private business and nonfarm business sectors were smaller in the revised
drop in unit profits since the f i r s t quarter of 1978, when a 40.8 percent
series than reported on July 28, based on preliminary measures.
decline occurred. Unit profits have now declined for 6 consecutive quarters,
In
manufacturing, however, productivity declined more in the revised series in both
the durable and nondurable subsectors.
A summary of second-quarter measures
appears in table A; details are given in tables 1-6.
and unit profits are at the lowest level since the f i r s t quarter of 1978.
The implicit price deflator, which shows the effects of changes in unit
labor cost, unit nonlabor cost, and unit profits, increased 12.3 percent in the
second quarter, compared with a 9.9 percent gain in the f i r s t quarter.
This was
the largest increase in the deflator since the fourth quarter of 1974, when a
Compensation and costs
Hourly compensation, which includes wages and salaries, supplements,
employer contributions to employee-benefit plans, and employment taxes,
13.8 percent increase occurred.
Compared with the second quarter of last year, productivity declined 0.5
increased at an 11.1 percent annual rate in nonfinancial corporations in the
percent, as output declined 2.0 percent and employee-hours dropped 1.5 percent.
second quarter of 1980 (seasonally adjusted).
Hourly compensation increased 9.7 percent, and unit labor cost rose 10.3
This was the largest increase in
these expenditures since the f i r s t quarter of 1978, when an 11.2 percent
percent.
increase occurred.
declined 14.2 percent.
Real hourly compensation—which is adjusted for changes in
Real hourly compensation declined 4.1 percent, and unit profits
the Consumer Price Index for All Urban Consumers (CPI-U)—declined 2.3 percent
in the second quarter, the ninth consecutive quarterly decline in the series.
This was the longest period of dropping real hourly compensation in the series
Revised measures
Revised second-quarter productivity and cost measures for the private
(which begins with 1958), and real hourly compensation now stands lower than at
business, nonfarm business, and manufacturing sectors were also released today
any time since the f i r s t quarter of 1972.
for the second quarter of 1980.
Unit labor cost, which is influenced by changes in hourly compensation and
Incorporating the most recent measures of
output and hours and the revised monthly index of industrial production from the
productivity, increased 12.3 percent in the second quarter, compared with an
Board of Governors of the Federal Reserve, the revised measures show
11.1 percent increase during the f i r s t quarter.
productivity declined 1.9 percent in the private business sector, 2.9 percent in
This was the largest increase
in this series since the f i r s t quarter of 1979, when a 13.4 percent increase
the nonfarm business sector, and 4.5 percent in manufacturing.
occurred.
these declines had been reported as 3.1 percent, 4.1 percent
respectively.
Previously,
and 3.2 percent,
As can be seen in table B, the revisions stem mainly from changes
in the estimates of second-quarter output changes. Table B compares preliminary
and revised series.
Table B
Preliminary and revised second quarter measures of productivity and costs
quarterly change at annual rate
(Seasonally adjusted)
Private business sector Nonfarm business sector Manufacturing
Measure
Preliminary Revised
Preliminary Revised
Preliminary Revised
Output per hour
of all persons
-3.1
-1.9
-4.1
-2.9
-3.2
-4.b
Compensation per
hour
12.0
11.9
10.8
10.7
14.7
15.2
Unit labor cost
15.5
14.1
15.6
14.1
18.5
20.7
Real compensation
per hour
-1.5
-1.6
-2.6
-2.6
0.9
1.3
Output
-12.5
-11.3
-12.8
-11.5
-20.8
-21.7
Hours
-9.7
-9.5
-9.1
-8.8
-18.2
-18.0
TABLE 1 . PRIVATE BUSINESS SECTOR, ALL PERSONS: PRODUCTIVITY,
HOURLY COMPENSATION, UNIT LABOR COST, AND PRICES, SEASONALLY ADJUSTED
YEAR AND
QUARTER
OUTPUT PER
HOUR
OF ALL PERSONS
REAL
* COMPENSATION PER
H0UR(2)
OUTPUT
HOURS
OF ALL
PERSONS
118.9
118.3
117.8
117.7
144.4
143.4
143.8
144.8
121.5
121.3
122.0
123.0
244.8
250.4
255.7
260.3
117.9
117.0
115.8
114.2
205.9
211.7
217.0
221.1
180.8
183.7
185.6
188.3
118.3
144.1
121.8
253.1
116.4
214.0
184.4
203.8
117.7
117.1R
144.8
140.6R
123.1
120.1R
267.6
275.3
112.9
112.4R
227.5
235.1R
190.0
193.1R
214.5
220.6R
COMPENSATION PER
HOUR(l)
UNIT
LABOR
COST
UNIT NONLABOR PAYMENTS(3)
IMPLICIT
PRICE
DEFLATOR
INDEXES 1967*100
1979
I
II
III
IV
ANNUAL
1980
I
II
197.2
202,0
206.1
209.7
PERCENT CHANGE FROM PREVIOUS QUARTER AT ANNUAL RATE(5)
1979
I
II
III
IV
ANNUAL
1980
I
II
-3.1
-2.0
-1.4
-0.3
1.2
-2.9
1.1
2.8
4.5
-0.9
2.5
3.1
11.0
9.5
8.7
7.5
-0.2
-2.9
-4.1
-5.4
14.6
11.8
10.3
7.8
-1.0
6.5
4.2
5.9
9.3
10.1
8.3
7.2
-0.8
2.4
3.3
9.4
-1.7
10.3
5.8
8.9
0.5
-9.5R
11.7
11.9R
-4.5
-1.6R
12.1
14.1R
3.8
6.6R
9.4
11.8R
-0.3
-1.9R
0.2
-11.3R
PERCENT CHANGE FROM CORRESPONDING QUARTER OF PREVIOUS
1979
I
II
III
IV
ANNUAL
1980
I
II
0.3
-0.7
-1.6
-1.7
8.7
10.2
11.2
11.1
9.7
5.7
4.8
3.9
9.0
8.7
9.1
8.7
9.4
-1.7
10.3
5.8
8.9
9.3
9.9R
-4.2
-3.9
10.5
11.OR
5.1
5.1R
8.8
9.2R
5.3
2.9
3.0
2.3
9.0
9.4
9.4
9.2
-0.8
2.4
3.3
-1.0
0.3
-2.OR
-l.OR
SEE FOOTNOTES FOLLOWING TABLE 6.
R=REVISED
PRELIMINARY
-0.8
-1.1
-2.1
-3.2
5.5
2.2
1.4
0.5
1.3
-1.0
YEAR(6)
AUGUST 27, 1980
SOURCE: BUREAU OF LABOR
STATISTICS
HOURLY
YEAR AND
QUARTER
TABLE 2 . NONFARM BUSINESS SECTOR, ALL PERSONS: P R O D U C T I V I T Y ,
COMPENSATION, U N I T LABOR COST, AND P R I C E S , SEASONALLY ADJUSTED
OUTPUT PER
HOUR
OF ALL PERSONS
OUTPUT
HOURS
OF ALL
PERSONS
COMPENSATION PER
HOUR(l)
REAL
COMPENSATION PER
H0UR(2)
UNIT
LABOR
COST
UNIT NONLABOR PAYMENTS^)
IMPLICIT
PRICE
DEFLATOR
INDEXES 1967=1.0
1979
I
II
III
IV
ANNUAL
1980
I
II
116.6
115.4
115.0
115,2
145.5
144.2
144.6
145.5
124.8
124.9
125.7
126.2
240.2
244.9
249.9
255.6
115.7
114.4
113.2
112.1
206.0
212.1
217.3
221.8
174.3
177.6
180.5
182.5
195.1
200.3
204.7
208.4
115.7
144.9
125.3
247.9
114.0
214.4
178.6
202.1
•114.9
114.1R
145.6
141.2R
126.7
123.8R
262.2
269.0
110.6
109.9
228.2
235.8R
185.9
191.1R
213.7
220.5R
-3.9
7.7
6.6
4.6
8.1
11.0
9.0
7.4
PERCENT CHANGE FROM
1979
I
II
III
IV
ANNUAL
1980
I
II
-3.3
-3.9
-1.5
0.8
1.2
-3.6
1.2
2.5
4.7
0.4
2.7
1.7
-1.1
2.4
-1.1
-2.9R
0.2
-11.5R
I
II
III
IV
ANNUAL
1980
I
II
-0.9
-4.2
-4.4
-3.6
14.0
12.5
10.1
8.6
3.5
9.0
-2.1
10.2
5.1
8.6
1.3
-8.8R
10.7
10.7R
12.0
14.1R
7.5
11.7R
10.6
-5.3
-2.6
13.3R
CORRESPONDING QUARTER OF PREVIOUS YEAR(6)
0.4
-1.1
-2.0
-2.0
5.9
2.2
1.3
0.3
5.5
3.3
3.4
2.4
8.7
8.9
8.9
9.1
-1.0
-1.6
-2.5
-3.3
8.3
10.1
11.1
11.3
8.2
5.0
4.3
3.7
8.3
8.5
9.0
8.9
-1.1
2.4
3.5
9.0
-2.1
10.2
5.1
8.6
-1.4
-1.2R
0.1
-2.1R
1.5
-0.9
9.2
9.8
-4.4
-4.0
10.8
11.2R
6.6
7.6R
9.5
10.1R
SEE FOOTNOTES FOLLOWING TABLE
R=REVISED
P=PRELIMINARY
RATE(5]
10.2
8.1
8.5
9.5
PERCENT CHANGE FROM
1979
PREVIOUS QUARTER AT ANNUAL
AUGUST 2 7 , 1 9 8 0
SOURCE: BUREAU OF LABOR
STATISTICS
TABLE 3. NONFINANCIAL CORPORATIONS: PRODUCTIVITY, HOURLY COMPENSATION
UNIT LABOR COST, UNIT PROFITS, AND PRICES, SEASONALLY ADJUSTED
YEAR
AND
QUARTER
1979
1980
OUTPUT
PER ALLEMPLOYEE
HOUR
OUTPUT
I
II
III
IV
118.1
117.3
117.2
117.1
155.1
154.1
154.3
155.1
ANNUAL
117.5
I
II
117.1
116.7P
EMPLOYEE HOURLY
g REAL
HOURS COMPENSA- HOURLY
TION
COMPEN(1)
SATION(2)
INDEXES 1967=100
UNIT
LABOR
COST
UNIT
NONLABOR
C0ST{8)
TOTAL
UNIT
COST
(9)
UNIT
PROFITS
(10)
201.0
206.4
210.8
215.3
206.5
213.2
220.5
226.1
202.3
208.0
213.2
218.0
130.3
129,2
127.5
124.0
IMPLICIT
PRICE
DEFLATOR
191.6
196.3
200.4
204.0
131.4
131.4
131.7
132.4
237.3
242.1
247.1
252.1
114.3
113.1
111.9
110.6
154.7
131.6
244.9
112.7
208.4
216.6
210.4
127.8
198.1
155.4
151.OP
132.7
129.4P
258.8
265.7P
109.2
108.5P
221.1
227.6P
234.4
250.7P
224.3
233.2P
120.5
110.9P
208.9
215.OP
PERCENT CHANGE FROM PREVIOUS BARTER AT ANNUAL RATE(5)
1979
I
II
III
IV
ANNUAL
1980
I
II
1979
I
II
III
IV
-2.3
-2.7
-0.3
-0.4
2.5
-2.6
0.6
1.9
4.9
0.1
0.9
2.3
10.8
8.3
8.5
8.4
-0.4
-4.1
-4.3
-4.5
13.4
11.2
8.8
8.9
6.8
13.5
14.6
10.6
11.7
11.8
10.2
9.3
-22.1
-3.4
-5.3
-10.4
7.6
10.2
8.6
7.3
-0.4
3.1
3.5
8.9
-2.2
9.3
7.3
8.8
0.4
7.9
-0.1
-1 .IP
0.8
-10.7P
0.9
-9.8P
11.0
11.IP
-5.1
-2.3P
11.1
12.3P
15.4
31.OP
12.2
16.8P
PERCENT CHANGE FROM CORRESPONDING QUARTER OF PREVIOUS
ANNUAL
1980
I
II
9.9
12.3P
YEAR(6)
1.0
-0.6
-1.1
-1.4
7.2
2.9
1.9
0.6
6.1
3.6
3.1
2.0
8.4
8.7
8.9
9.0
-1.3
-1.8
-2.6
-3.3
7.3
9.4
10.1
10.6
2.5
6.2
9.4
11.3
6.1
8.6
9.9
10.8
21.7
0.0
-3.9
-10.6
7.5
7.7
8.4
8.4
-0.4
3.1
3.5
8.9
-2.2
9.3
7.3
8.8
0.4
7.9
-0.9
-0.5P
0.2
-2.OP
1.0
-1.5P
9.0
9.7P
-4.5
-4.IP
10.0
10.3P
13.5
17.6P
10.9
12.IP
-7.6
-14.2P
9.0
9.5P
SEE FOOTNOTES FOLLOWING TABLE 6.
R=REVISED
PRELIMINARY
-10.9
-28.2P
AUGUST 27, 1980
SOURCE: BUREAU OF LABOR STATISTICS
TABLE 4. MANUFACTURING SECTOR: PRODUCTIVITY, HOURLY
COMPENSATION, UNIT LABOR COST, SEASONALLY ADJUSTED
YEAR AND
QUARTER
OUTPUT PER
HOUR
OF ALL PERSONS
OUTPUT
(7)
HOURS
OF ALL
PERSONS
COMPENSATION PER
HOUR(l)
REAL
COMPENSATION PER
HOUR(2)
UNIT
LABOR
COST
INDEXES 1967=100
1979
1980
I
II
III
IV
128.3
128.8
129.6
129.1
139.3
138.6
138.5
138.0
108.6
107.6
106.9
106.9
242.3
248.0
252.7
258.0
116.7
115.9
114.4
113.2
189.0
192.6
195.0
199.8
ANNUAL
129.2
138.6
107.3
250.8
115.3
194.1
128.4
127.OR
137.7
129.5R
107.2
102.0
264.6
274.1R
111.6
112.OR
206.0
215.9R
I
II
PERCENT CHANGE FROM PREVIOUS QUARTER AT ANNUAL RATE(5)
1979
1980
I
II
III
IV
-3.8
1.7
2.5
-1.4
3.2
-2.0
-0.3
-1.4
7.3
-3.6
-2.7
-0.1
10.1
9.6
7.8
8.8
-0.9
-2.8
-4.9
-4.2
14.5
7.9
5.2
10.3
ANNUAL
0.8
3.1
2.2
9.1
-2.0
8.2
-2.2
-4.5R
-0.9
-21.7R
1.3
-18.OR
10.5
15.2R
-5.5
1.3R
13.0
20.7R
I
II
PERCENT CHANGE FROM CORRESPONDING QUARTER OF PREVIOUS YEAR(6)
1979
1980
I
II
III
IV
1.5
0.9
0.2
-0.3
6.9
3.8
1.9
-0.1
5.3
2.9
1.7
0.2
8.2
9.2
9.1
9.1
-1.5
-1.3
-2.4
-3.3
6.6
8.2
8.9
9.4
JAL
0.8
3.1
2.2
9.1
-2.0
8.2
I
II
0.1
-1.4R
-1.1
-6.6R
SEE FOOTNOTES FOLLOWING TABLE 6.
R=REVISED
P=PRELIMINARY
-1.3
-5.2
9.2
10.5R
-4.4
-3.4R
9.0
12.1R
AUGUST 27, 1980
SOURCE: BUREAU OF LABOR STATISTICS
TABLE 5. DURABLE MANUFACTURING SECTOR: PRODUCTIVITY, HOURLY
COMPENSATION, UNIT LABOR COST, SEASONALLY ADJUSTED(ll)
YEAR AND
QUARTER
OUTPUT PER
HOUR
OF ALL PERSONS
OUTPUT
(7)
HOURS
OF ALL
PERSONS
COMPENSATION PER
HOUR(l)
REAL
COMPENSATION PER
HOUR(2)
UNIT
LABOR
COST
INDEXES 1967=100
1979
I
II
III
IV
ANNUAL
1980
I
II
120.9
121.4
121.1
120.6
135.4
134.2
133.2
132.4
112.0
110.6
110.0
109.8
121.3
133.8
110.3
119.4
118.5R
131.5
122.3R
110.1
103,2R
243.4
249.0
253.6
258.5
117.2
116.3
114.8
113.4
201.3
205.1
209.5
214.3
251.8
115.8
207.5
112.3
113.OR
223.1
233.3R
266.3
276.5R
PERCENT CHANGE FROM PREVIOUS QUARTER AT ANNUAL RATE(5)
1979
1980
I
II
III
IV
-4.9
1.7
-1.1
-1.4
3.9
-3.6
-3.0
-2.3
9.3
-5.2
-1.9
-0.9
9.8
9.6
7.6
8.1
-1.3
-2.9
-5.1
-4.8
15.4
7.7
8.8
9.6
ANNUAL
-0.1
3.2
3.3
8.9
-2.1
9.0
-4.1
-2.8R
-2.8
-25.2R
1.3
-23.OR
12.6
16.2R
-3.7
2.2R
17.4
19.6R
I
II
PERCENT CHANGE FROM CORRESPONDING QUARTER OF PREVIOUS YEAR(6)
1979
1980
I
II
III
IV
1.1
0.0
-1.2
-1.4
8.7
4.4
1.4
-1.3
7.5
4.4
2.7
0.2
8.0
9.0
9.0
8.7
-1.7
-1.5
-2.5
-3.5
6.8
9.0
10.3
10.3
UAL
-0.1
3.2
3.3
8.9
-2.1
9.0
I
II
-1.2
-2.4R
-2.9
-8.9R
-1.7
-6.7R
9.4
11.1R
-4.1
-2.9R
10.8
13.7R
SEE FOOTNOTES FOLLOWING TABLE 6.
R=REVISED
P=PRELIMINARY
AUGUST 27, 1980
SOURCE: BUREAU OF LABOR STATISTICS
TABLE 6. NONDURABLE MANUFACTURING SECTOR: PRODUCTIVITY, HOURLY
COMPENSATION, UNIT LABOR COST, SEASONALLY ADJUSTED(12)
YEAR AND
QUARTER
OUTPUT PER
HOUR
OF ALL PERSONS
OUTPUT
(7)
HOURS
OF ALL
PERSONS
COMPENSATION PER
HOUR(l)
REAL
COMPENSATION PER
HOUR(2)
UNIT
LABOR
COST
INDEXES 1967=100
1979
1980
I
II
III
IV
140.7
141.2
144.0
143.4
145.5
145.7
147.1
147.0
103.4
103.2
102.2
102.5
238.6
244.5
249.3
255.4
114.9
114.3
112.9
112.0
169.6
173.2
173.1
178.1
ANNUAL
142.4
146.3
102.7
247.2
113.7
173.5
143.7
140.8R
147.7
141.2R
102.8
100.2R
259.6
269.1R
109.5
109.9
180.6
191.1R
I
II
PERCENT CHANGE FROM PREVIOUS QUARTER AT ANNUAL RATE(5)
1979
1980
I
II
III
IV
-2.0
1.4
8.2
-1.5
2.1
0.5
3.9
-0.2
4.2
-0.9
-4.0
1.3
10.2
10.3
7.9
10.3
-0.9
-2.2
-4.8
-2.9
12.5
8.8
-0.2
11.9
ANNUAL
2.2
2.8
0.6
9.1
-2.0
6.7
0.7
-7.7R
2.0
-16.6R
1.2
-9.7R
6.7
15.5R
-8.8
1.6R
5.9
25.2R
I
II
PERCENT CHANGE FROM CORRESPONDING QUARTER OF PREVIOUS YEAR(6)
1979
1980
I
II
III
IV
2.3
2.3
2.4
1.5
4.3
2.8
2.7
1.6
1.9
0.5
0.3
0.1
8.1
9.1
9.0
9.7
-1.5
-1.4
-2.4
-2.7
5.7
6.7
6.4
8.1
JAL
2.2
2.8
0.6
9.1
-2.0
6.7
I
II
2.2
-0.2R
1.5
-3.1R
-0.6
-2.9R
8.8
10.1R
SEE FOOTNOTES FOLLOWING TABLE 6.
R=REVISED
P=PRELIMINARY
-4.7
-3.8R
6.5
10.3R
AUGUST 27, 1980
SOURCE: BUREAU OF LABOR STATISTICS
FOOTNOTES, TABLES 1-6
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.
(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 SELF-EMPLOYED.
(2)
COMPENSATION PER HOUR ADJUSTED FOR CHANGES IN THE CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS.
(3)
NONLABOR PAYMENTS INCLUDE PROFITS, DEPRECIATION, INTEREST, RENTAL INCOME, AND INDIRECT TAXES.
(4) CURRENT DOLLAR GROSS PRODUCT DIVIDED BY CONSTANT DOLLAR GROSS PRODUCT.
(5)
PERCENT CHANGE COMPOUNDED AT ANNUAL RATE FROM THE ORIGINAL DATA RATHER THAN INDEX NUMBERS.
(6) CURRENT QUARTER DIVIDED BY COMPARABLE QUARTER A YEAR AGO.
(7) QUARTERLY MEASURES ADJUSTED TO ANNUAL ESTIMATES OF OUTPUT (GROSS PRODUCT ORIGINATING) FROM THE BUREAU OF ECONOMIC STANDARDS.
U.S. DEPARTMENT OF COMMERCE.
(8)
UNIT NONLABOR COST INCLUDE DEPRECIATION, INTEREST, AND INDIRECT TAXES.
(9)
TOTAL UNIT COST IS THE SUM OF LABOR AND NONLABOR COSTS.
(10) UNIT PROFITS INCLUDE CORPORATE PROFIT AND INVENTORY VALUATION ADJUSTMENT.
(11) THE DURABLE SECTOR INCLUDES THE FOLLOWING 2-DIGIT SIC INDUSTRIES: PRIMARY METAL; FABRICATED METAL PRODUCTS; NONELECTRICAL
MACHINERY; ELECTRICAL MACHINERY; TRANSPORTATION EQUIPMENT; INSTRUMENTS; LUMBER AND LUMBER PRODUCTS; FURNITURE AND FIXTURES;
STONE, CLAY, & GLASS PRODUCTS; AND MISCELLANEOUS MANUFACTURERS.
(12) THE NONDURABLE SECTOR INCLUDES THE FOLLOWING 2-DIGIT SIC INDUSTRIES: TEXTILE MILL PRODUCTS; APPAREL PRODUCTS; LEATHER
AND LEATHER PRODUCTS; PRINTING AND PUBLISHING; CHEMICALS AND CHEMICAL PRODUCTS; PETROLEUM PRODUCTS; RUBBER AND PLASTIC
PRODUCTS; FOODS; AND TOBACCO PRODUCTS.
(13) SCHEDULING OF THE RELEASE OF THE NEW CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS (CPI-U) PRECLUDES THE USE OF REAL HOURLY
COMPENSATION (HOURLY COMPENSATION ADJUSTED FOR QUARTERLY CHANGES IN THE CPI-U) WITH PRELIMINARY PRODUCTIVITY AND COST MEASURE
THESE WILL BE PUBLISHED TOGETHER WITH REVISED OUTPUT AND LABOR INPUT MEASURES WITH THE NEXT REGULAR EDITION OF PRODUCTIVITY
AND COSTS, APPROXIMATELY 30 DAYS AFTER THE PRELIMINARY MEASURES.
*
*
*
*
*
*
*
*
THE PRODUCTIVITY AND ASSOCIATED COST MEASURES IN THIS PRESS RELEASE DESCRIBE JHE 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 LABOR TIME REQUIRED TO PRODUCE A UNIT OF OUTPUT.
ALTHOUGH THESE MEASURES RELATE OUTPUT TO HOURS OF ALL PERSONS ENGAGED IN A SECTOR, THEY DO NOT
MEASURE THE SPECIFIC CONTRIBUTIONS OF LABOR, CAPITAL, OR ANY OTHER FACTOR OF PRODUCTION. RATHER,
THEY REFLECT THE JOINT CHANGES IN TECHNOLOGY; CAPITAL INVESTMENT; LEVEL OF OUTPUT; UTILIZATION
OF CAPACITY; ENERGY AND MATERIALS; THE ORGANIZATION OF PRODUCTION; MANAGERIAL SKILL; AND
CHARACTERISTICS AND EFFORT OF THE WORK FORCE.
*
*
*
*
*
*
*
*
Chart 1. Productivity, hourly compensation, unit costs and prices
in the private business sector
(percent change from preceding quarter at annual rate)
O u t p u t p e r hour of all p e r s o n s
15
10
5
0
-5
-10
Compensation per hour of an persons
15
10
5
0
Unit labor cost
20
15
10
5
0
-5
Unit nonlabor payments
35
30
25
20
15
10
5
0
-10
-15
mplicit price defla
t
I
.
I
1973
I
H
h
20
15
10
5
0
4
I
1974
1975
1976
1977
1978
1979
1980
Chart 2. Productivity, hourly compensation, unit costs and prices
in the nonfarm business sector
(percent change from preceding quarter at annual rate)
Output per hour of all persons
15
10
5
0
-5
-10
Compensation per hour o* all persons
15
10
5
0
Unit labor cost
25
20
15
10
5
0
Unit nonlabor payments
30
25
20
15
10
5
0
~*5
-10
-15
Implicit price deflator
20
15
10
5
0
I
1973
1974
1975
1976
1977
t
I
I
1978
I
I
I
I
1979
I
1
I
I
1980
I
I
Chart 3. Productivity, hourly compensation, unit costs and prices
in nonfinancial corporations
(percent change from same quarter a year ago)
Output per hour of all employees
II
-0.5
15
10
5
0
~5
Compensation per hour of all employees
15
10
5
0
Unit labor cost
15
10
5
0
Unit nonlabor payments
II
8.0
25
20
15
10
5
0
-5
Implicit price defla t o r
II
9.5
15
10
5
0
i
t i I i l i I i i i I i i i 1 i i i 1 i i i I i i i 1 i i t
1973
1974
1975
1976
1977
1978
1979
1980
Chart 4. Unit costs, unit profits, and prices in nonfinancial
corporations
(percent change from same quarter a y^Qr ago)
Unit 1 abor ccist
I
1
I
r
1
1
1
1
1
1
1
1
1
'
1
20
I
•
i
!I
•
i
Unit rion labor- cost
—
m
—
II
10.3
1
0
II
i
:
17.6
30
—
—
-
20
:
/
L
10
\
MSB
M
M
M
•m
^
,
r^l
M]
0
-10
Total unit c o s t
i:
12.1
t
20
—
—
—
15
\
.
J
I
\
L
\\
i
\
Unit [p r o f i t s
:
r
!
i
1
•
i
i
i
i
r
i
t
i
I
i
1
I
i
i
i
i
!
|
|
1
|
1
I
1
|
^ \
\
1973
1974
60
50
40
30
20
iA
10
0
K
-10
t
r
T
1 , , ,
—
—
—
—
—
—
—
—
—
—
70
I
[
1
80
I
I
1
1
1
i A,/
0
II
-14.2
|
! I
r
\
\
5
i
i
i
i
i
i
i
i
1
h
Ii
i
i \
i \
: \
f
•
k^—•,
—1
•—•
/ -
1
1
t
.
.
10
\
-20
i
,
1975
1
1
1
1976
1
1977
!
I
I
t
I
1978
!
!
I
1
I
1979
1
-30
1
1
1980
1
1
@FedFRASER