Full text of Productivity and Costs : Nonfinancial Corporate Sector : Second Quarter 1981

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News

Bureau of Labor Statistics
Lawrence Fulco
Kathry.n Hoyle

-2-

United States
Department
of Labor
Washington, D.C. 20212

(202) 523-9261
(202) 52J-1913

Table A. Productivity and costs: percent change at annual rate
(Seasonally adjusted)
Real
Hourly
Unit
hourly
Output
Produccompenlabor
compenSector
tivity
sation
cost
sation

USDL 81-415
For Release 10:00 AM EDT
Wednesday, August 26, 1981

Hours

First Quarter 1981 to Second Quarter 1981
PRELIMINARY
Nonfi nancial
corporations

0.9

9.2

2.8
0.7
4.3
5.7
2.4

10.4
9.6
10.6
10.6
10.6

8.3

2.1

-1.3

-2.2

3.1
2.4
3.4
3.3
3.4

-0.9
-1.9
3.5
5.2
1.1

-3.7
-2.6
-0.8
-0.5
-1.2

PRODUCTIVITY AND COSTS

REVISED

Nonfinancial Corporate Sector
Second Quarter 1981
Productivity in nonfinancial corporations increased at a 0.9 percent annual
rate in the second quarter of 1981, the Bureau of Labor Statistics of the U.S.
Department of Labor reported today.

Private business
Nonfarm business
Manufacturing
Durable
Nondurable

Second Quarter 1980 to Second Quarter 1981
PRELIMINARY

The increase reflected a 1.3 percent

decline in output and a 2.2 percent decrease in hours of all employees.

In the

f i r s t quarter of 1981, productivity rose 6.3 percent in this sector, reflecting

Nonfinancial
corporations

3.4

10.1

Private business
Nonfarm business
Manufacturing
Durable
Nondurable

1.9
2.1
4.5
5.0
3.8

10.1
10.0
11.2
11.6
10.5

This sector includes all corporations doing

business in the United States with the exception of banks, stock and commodity
brokers, and finance and insurance companies.

6.4

0.3

5.3

1.7

8.0
7.8
6.4
6.3
6.4

0.3
0.2
1.3
1.7
0.6

3.7
3.9
6.3
7.2
5.0

1.7
1.8
1.7
2.1
1.2

REVISED

gains in output and hours of 11.5 percent and 4.8 percent, respectively, at seasonally adjusted annual rates.

7.3
8.8
6.0
4.6
8.0

Revised second-quarter measures were also reported today for the private
business, nonfarm business, and manufacturing sectors.

The latest measures show

productivity increased 2.8 percent in the private business sector, 0.7 percent
in the nonfarm business sector, and 4.3 in manufacturing.

Preliminary measures

reported July 30 showed changes of 1.1 percent, -0.9 percent, and 4.2 percent,
respectively.

Compensation and costs
Hourly compensation, which includes wages, salaries, supplements, employer
contributions to employee benefit plans, and employment taxes, increased at a
9.2 percent annual rate in nonfinancial corporations in the second quarter of
1981.

During the first quarter, hourly compensation rose 11.4 percent.

Real

hourly compensation—which is adjusted for changes in the Consumer Price Index

A summary of second-quarter measures appears in table A; details are given
for All Urban Consumers (CPI-U)—increased 2.1 percent in the second quarter.

in tables 1-6.
There was no change in this series during the first quarter.

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 or production. Rather, they reflect
the joint effects of many influences, including new technology, capital investment, the level of output, capacity u t i l i z a t i o n , energy use, and managerial
s k i l l , as well as the s k i l l s and efforts of the work force.




-J-

Unit labcr cost, which 1s influenced by changes 1n hourly compensation and
productivity, increased 8.3 percent 1n the second quarter, compared with a 4.8

-4Table B.
Preliminary and revised second quarter 1981 measures of productivity and cost:
quarterly change at annual rate
(Seasonally adjusted)

percent rise during the first quarter.
Unit profits declined at a 19.4 percent annual rate 1n the second quarter,
compared with a 77.9 percent gain during the first quarter. This marked the

Private business sector Nonfarm business sector
Preliminary | Revised

first decline in unit profits since the second quarter of 1980, when a 41.9

Output per hour
of all persons

percent drop occurred.

Compensation
per hour

The implicit price deflator, which shows the effects of changes in unit
labor cost, unit nonlabor cost, and unit profits, increased 7.1 percent. This
was the smallest quarterly gain in the deflator since the 5.0 percent gain in
the first quarter of 1978.
Compared with the second quarter of 1980, productivity increased 3.4
percent, as output rose 5.3 percent and hours increased 1.7 percent. Hourly
compensation increased 10.1 percent, real hourly compensation rose 0.3 percent,
and unit profit increased 21.3 percent.
Revised measures
Revised second-quarter productivity and cost-measures for the private
business, nonfarm business, and manufacturing sectors were also released today
for the second quarter of 1981. Incorporating the most recent measures of
output and hours, these new measures show higher productivity gains than had
been reported earlier, based on preliminary data. As can be seen in table B,
the revisions stem mainly from changes 1n the output measures. Second-quarter
gross national product was revised downward by the Bureau of Economic Analysis
of the U.S. Department of Commerce on August 19. However, output measures for
the business sectors were revised upward, reflecting the changes In the
underlying component series which comprise business sector output measures.




Manufacturing

Measure
Preliminary | Revised

Preliminary |Revised

1.1

2.8

-0.9

0.7

4.2

4.3

10. 3

10.4

9.6

9.6

10.4

10.6

Unit labor cost

9.2

7.3

10.6

8.8

6.0

6.0

Real compensation
per hour

3.1

3.1

2.4

2.4

3.2

3.4

Output

-2. 6

-0.9

-3.5

-1.9

3.2

3.5

Hours

-3. 7

-3.7

-2.6

-2.6

-1.0

-0.8

HOURLY
YEAR AND
QUARTER

TA3LE 1. P R I V A T E B U S I N E S S
C O M P E N S A T I O N , UNIT LA50R

OUTPUT PEP
HOUR
OF ALL P E R S O N S

OUTPUT

S E C T O R , ALL P E R S O N S : P R O D U C T I V I T Y ,
C O S T , AND P R I C E S , S E A S O N A L L Y A D J U S T E D
COMPENSATION PER
HCURC1 )

HOURS
OF ALL
PERSONS
INDEXES

1930

I
II
III
IV
ANNUAL

1 931

I
II

I
II
III
IV
ANNUAL

1931

I
II

ANNUAL
1931

SEE FOOTNOTES
R=REVISED
P=PRELIMINARY

FOLLOWING




1977=100
126.4
1 3C. 1
133.1
135.9

96.7
96.5
96.9
96.0

127.0
131.3
133.9
137.0

115.2
116.0
119.7
122.7

123.C
126.1
129.1
132.2

99. 3

106.3

107.5

131.4

96.6

132.3

118.4

127.6

100.3
101.OR

1C9.5
1C9.3R

1C9.2
103.2

139.7
143.2

96.1
96.8

139.4
141.3R

127.6
129.2R

135.4
137.6R

CHANGE

FROM PREVIOUS QUARTER

AT

ANNUAL R A T E C 5 )

1.6
-1 .3
1.3
-1.1

1.8
-11 .5
1 .1
6.9

0.2
-9.9
-0.2
8.1

10.7
12.3
9.5
8.6

-5.0
-0.7
1.6
-3.3

9.0
14.4
8.1
9.3

11 .2
2.6
13.7
1C.2

9.7
10.5
9.8
9.9

-0.2

-0.8

-0.6

1C.1

-3.C

10.3

6.7

9.2

7.9
-0.9R

3.1
-3.7

11.8
10.4R

0.4
3.1

17.2
5.OR

10.C
6.6R

6.9
7.3R

FROM C O R R E S P O N D I N G C1UARTER OF PREVIOUS

YEARC6)

-0.1
-0.6
0.0
0.0

0.9
-1 .6
-1 .9
-0.7

1.C
-1.0
-1.9
-0.7

9.9
10.1.
1C.3
1C.3

-3.8
-3.8
-2.3
-2.0

1C.0
10.8
10.3
10.3

5.1
5.1
7.4
9.3

8.4
9.0
9.4
10.C

-0.2

-0.8

-0.6

1C.1

-3.0

10.3

6.7

9.2

0.0
1.7

1C.5
10.1

-0.7
0.3

10.8
11.4R

1C.1
9.1R

0.7
1.9-*'

I
II

IMPLICIT
PRICE
DEFLATOR

109.2
106.4
106.3
108.4

4.6
2.3R

I
II
III
IV

UNIT N O N LABOR P A Y MENTSC3)

1C8.7
1C5.4
1C5.7
1C7.5

PERCENT CHANGE
1930

UNIT
LABOR
COST

99.5
99.1
99.4
99.1

PERCENT
1930

REAL
COMPENSATION PER
HCURC2)

TABLE

0.8
3.7R

9.7
8.OR

6.
AUGUST 2 6 , 1931
S O U R C E : B U R E A U OF LABCR

STATISTICS

HOURLY

TABLE 2 . NONFARM BUSINESS
COMPENSATION, UNIT LABOR

OUTPUT PER
HOUR
OF ALL PERSONS

YEAR A N D
QUARTER

OUTPUT

SECTOR, ALLPERSONS:
PRODUCTIVITY,
COST/ AND PRICES/ SEASONALLY
ADJUSTED

INDEXES
1980

1981

1981

1981

UNIT NONLABOR PAYMENTS^)

IMPLICIT
PPICE
DEFLATOR

1977=100

98.9
98.2
99.0
99.0

1C8.5
105.1
105.8
107.7

109.8
107.1
106.9
108.8

126.0
129.4
132.3
135.4

96.4
96.0
96.3
95.6

127.4
131.8
133.6
136.8

113.9
115.1
119.2
122.0

122.9
126.3
128.8
131.9

ANNUAL

98.8

106.8

108.1

13C.8

96.2

132.4

117.5

127.4

109.7
1C9.2R

109.7
109.C

139.1
142.4

95.7
96.3

139.1
142.1R

127.8
128.6R

135.3
13 7.6R

I
II

100.0
100.2R

CHANGE

FROM PREVICUS

CUARTER

AT ANNUAL

RATEC5)

I
II
III
IV

0.3
-2.9
3.6
-0.2

1 .4
-12.1
2.9
7.1

1.1
-9.5
-0.7
7.3

10.2
11.3
9.0
9.8

-5.4
-1.6
1.2
-2.7

9.9
14.6
5.3
10.1

14.6
4.2
15.0
9.9

11.3
11.3
8.2
10.C

ANNUAL

-0.3

-0.9

-0.6

9.9

-3.2

1C.3

8.3

9.7

7.9
-1 .9R

3.5
-2.6

11.6
9.6

2.4

2C.3
2.7R

11.C
6.9R

4.3
0.7R

I
II

PERCENT
1980

UNIT
LABOR
COST

I
II
III
IV

PERCENT
1980

REAL
CCMPENSATION PER
hCUR(2)

COMPENSATION PER
HCURC1)

HOURS
OF ALL
PERSONS

I
II
III
IV

-0.7
-1.0
0.1

ANNUAL

-0.3

o.i
1.1
2.1R

I
II

SEE FOOTNOTES
R=REVISED
P=PR6LIMINARY

FOLLOWING




CHANGE

FRCf* CORRESPONDING

QUARTER

7.0
8.8R

OF PREVICUS

YEARC6)

0.6
-1.9
-1 .8
-C.5

1.3
-0.9
-1.9
-0.6

9.7
9.9
1C.1
10.1

-4.0
-4.0
-2.5
-2.2

1C.4
11.0
9.9
9.9

6.4
6.9
9.1
10.8

9.1
9.7
9.6
10.2

-0.9

-0.6

9.9

-3.2

1C.3

8.3

9.7

0.0
1.8

10.4
1C.0

-0.8
0.2

12.2
11.8R

10.1
9.OR

1.1
3.9R

9.2
7.8R

TABLE 6,
AUGUST 2 6 , 1981
SOURCE: BUREAU OF LABOR

STATISTICS

TABLE 3. NONFINANCIAL CORPORATIONS: PRODUCTIVITY, HOURLY
U N I T L A B O R C O S T / U N I T P R O F I T S / AND P R I C E S / S E A S O N A L L Y
YEAR
AND
QUARTER

OUTPUT
PER A L L EMPLOYEE
HOUR

EMPLOYEE
HOURLY
HOURS
COMPENSATICN
(1)

OUTPUT

INDEXES
1980

1981

REAL
HOURLY
COMPENSATIONC2)

COMPENSATION
ADJUSTED

UNIT
LABOR
COST

UNIT
NONLABOR
CCST(fi)

1981

1981

IMPLICIT
PRICE
DEFLATOR

I
II
III
IV

1C0.2
1C0.1
101.8
101.8

109.9
106.8
107.7
109.7

109.6
106.7
105.8
107.8

125.7
129.3
132.5
135.5

96.2
95.9
96.5
95.7

125.4
129.1
130.2
133.1

120.9
129.3
133.£
136.9

124
129
131
134

95.5
83.4
39.1
92.4

121.
124,
126,
129,

ANNUAL

101.0

108.5

107.5

13C.7

96.2

129.4

130.2

129.7

9C.2

125.2

103.3
103.6P

112.8
112.4P

109.1
108.5P

139.2
142.3P

95.7
96.2P

134.7
137.4P

139.5
144.4P

136.C
139.2P

106.8
101.2P

132. 7
135. OP

I
II

RATEC5)

I
II
III
IV

1.5
-0.5
6.7
0.0

2.2
-10.9
3.4
7.9

0.7
-10.5
-3.1
7.9

10.2
12.0
10.2
9.4

-5.4
-1.0
2.2
-3.1

8.6
12.6
3.2
9.4

13.5
30.6
14.7
9.5

9.8
17.0
6.2
9.4

15.3
-41.9
3C.3
15.7

1C.3
1C.5
7.9
9.9

ANNUAL

0.6

-0.7

-1.3

10.1

-3.0

9.5

15.6

11.0

-3.9

9.1

6.3
0.9P

11.5
-1.3P

4.8
-2.2P

11.4
9.2P

4.8
8.3P

7.9
14.9P

5.6
10.OP

77.9
-19.4P

1C.4
7.1P

QUARTER

OF P R E V I O U S

I
II

PERCENT
1980

UNIT
PROFITS

1977=100

PERCENT CHANGE FROM PREVIOUS QUARTER AT ANNUAL
1980

TOTAL
UNIT
COST
(9)

CHANGE

O.,O
2.1P

FROM C O R R E S P O N D I N G

YEARC6)

I
II
III
IV

-0.3
-0.5
1.3
1.9

0.4
2.0
1.6
0.4

0.7
-1.5
-2.8
-1.5

9.8
9.9
10.3
10.4

-3.9
-3.9
-2.2
-1.9

10.1
10.5
8.9
8.4

12.2
16.3
16.8
16.8

10.6
12.0
11.0
10.5

-9.5
-17.2
-8.6
0.3

8.5
9.1
9.1
9.6

ANNUAL

0.6

0.7

-1.3

10.1

-3.0

9.5

15.6

11.0

-8.9

9.1

3.1
3.4P

2.6
5.3P

-0.5
1.7P

10.8
10.1P

-0.5
0.3P

7.4
6.4P

15.4
11.7P

11.8
21.3P

9.7
8.8P

I
II

SEE FOOTNOTES FOLLOWING TABLE 6.
R=REVISED
P^PRELIMINARY




9.5
7.8P

AUGUST 26/ 1981
SOURCE: BUREAU OF LABOR

STATISTICS

TABLE 4. MANUFACTURING SECTOR: PRODUCTIVITY/ HOURLY
COMPENSATION, UNIT LABOR COST, SEASONALLY ADJUSTED
YEAR AND
QUARTER

OUTPUT PER
HOUR
OF A L L P E R S O N S

OUTPUT
(7)

HOURS
OF A L L
PERSONS
INDEXES

1980

1981

108.0
1C1.7
99.7
105.2

105.9
100.9
99.2
101.8

125.4
13C.0
133.9
137.3

95.9
96.4
97.5
97.0

122.
129,
133.
132.

ANNUAL

101.7

103.6

101.9

131.6

96.3

129.4

I
II

104.2
105.3

1C7.1
108.1R

102.8
102.6

140.9
144.5

96.9
97.7

135.
137.

I
II
III
IV

1931

FROM

PREVIOUS

GUARTER

AT ANNUAL

RATEC5)

-1.0
-21.5
-7.6
24.4

-0.6
-17.6
-6.5
11.0

10.4
15,
12,
10.5

-5.3
2.1
4.5
-2.2

10.
21.
14.
-1.

-0.3

-4.6

-4.3

1C.7

-2.5

11.1

4.0
-0.3R

11.1
1C.6R

-0.3
3.4R

3.2
4.3R

I
II

CHANGE

3
3R

-0.5
-4.7
-1.2
12.1

7.3
3.5R

PERCENT
1980

1977=100

102.0
100.8
100.5
103.4

ANNUAL
1981

UNIT
LABOR
COST

I
It
III
IV

PERCENT
1980

REAL
COMPENSATION PER
HCURC2)

COMPENSATICN PER
HCURC1)

CHANGE

FROM

CORRESPONDING

QUARTER

OF PREVIOUS

7.7
6.0

YEARC6)

I
II
III
IV

0.5
1.5
1.5
1.2

-1.2
-6.3
-8.2
-2.8

-1.7
-4.9
-6.7
-4.0

9.4
9.6
11.7
12.2

-4.2
-4.3
-1.0
-0.3

8.9
11.3
13.4
10.9

ANNUAL

0.3

-4.6

-4.3

10.7

-2.5

11.1

2.2
4.5

-0.8
6.3R

-2.9
1 .7

12.4
11.2

1.0
1.3

10.0
6.4

I
II

SEE FOOTNOTES
R=REVISED
^PRELIMINARY

FOLLOWING




TABLE

6,
AUGUST 26/ 1981
SOURCE: BUREAU OF LA3CR

STATISTICS

TABLE 5. DURABLE MANUFACTURING SECTOR: P R O D U C T I V I T Y , HOUPLY
COMPENSATION, UNIT LABOR COST, SEASONALLY ADJUSTEDX11>

YEAR AND
QUARTER

OUTPUT PER
HOUR
OF ALL PERSONS

OUTPUT
(7)

HOURS
OF ALL
PERSONS
INDEXES

19S0

I
II
III
IV
ANNUAL

1981

I
II

1931

108.5
101.9
99.3
103.1

125.1
129.9
134.1
137.7

95.7
96.4
97.6
97.3

125,
131.
136,
135.

99.6

1C2.9

103.3

131.7

96.8

132.2

102.5
103.9R

106.7
103.OR

104.1
104.OR

141.4
145.OR

97.2
98.0

138.0
139.6

-2.9
-25.0
-11 .2
30.1

ANNUAL

-1 .1

-6.6

4.4
5.7R

I
II
III
IV

1981

II
FOOTNOTES

FOLLOWING

P = P R E L I PI N A R Y




FROM

CHANGE

PREVIOUS

FROM

QUARTER

AT ANNUAL

RATEC5)

-8«C
14.0

12.3
16.5
13.4
11.3

-3.7
2.9
5.2
-1.4

14.8
20.5
17.6
-2.5

-5.6

11.2

-2.0

12.5

4.0
-0.5R

11.1
1C.6R

-C.3
3.3R

-0.3

•22.4

8.5
5.2R

0.9
2.6
2.1
1.0

ANNUAL

SEE

CHANGE

-2.2
-3.4
-3.5
14.1

PERCENT
1980

1977=100

1C8.3
1C0.8
97.3
1C4.5

II
III
IV

I
II

UNIT
LABOR
COST

99.S
99.0
93.1
101.4

PERCENT
1930

REAL
CCKPENSATION PER
HCURC2)

COMPENSATION PER
HCURC1)

CORRESPONDING

QUARTER

OF PREVIOUS

6.4
4.6R

YEAR(6)

-3.G
-8.7
-10.7
-4.2

-2.1
-6.2
-8.3
-5.2

9.6
9.7
12.4
13.3

-4. 1
-4. 1
-0. 5
0.7

10. 7
12. 6
14. 7
12.2

1 .1

-6.6

-5.6

11 . 2

-2.0

12.5

2.7
5.OR

-1.5
7.2R

-4.1
2.1R

13.0
11 . 6 R

TABLE

1 .6
1.7R

10.1
6.3

6.
AUGUST 26, 1981
SOURCE: BUREAU OF LABOR

STATISTICS

TABLE 6. NONDURABLE MANUFACTURING SECTOR: PRODUCTIVITY, HOURLY
COMPENSATION, UNIT LA90R CCST/ SEASONALLY ADJUSTED(12)
YEAR AND
QUARTER

OUTPUT PER
HOUR
)F ALL PERSONS

OUTPUT
(7)

HOURS
OF ALL
PERSONS

CCfPENSATIC-N PER
HCURC1)

REAL
CCPPENSATICN PER
HCURC2)

UNIT
LAECR
COST

INDEXES 1977=100
1980

1931

I
II
III
IV

105.5
103.5
104.1
136.5

1C7.5
1G2.9
102.4
1C6.4

101.9
99.4
98.4
99.9

125.0
129.6
133.3
136.0

95.7
96.2
97.1
96.1

118.6
125.2
128.1
127.7

ANNUAL

104.9

1C4.5

99.9

131.0

96.3

124.9

106.8
107.5R

1C7.8
1C8.1R

100.9
100.6

139.6
143.2

96.0
96.3

130.7
133.2R

I
II

PERCENT CHANGE FRO* PREVIOUS GUARTER AT ANNUAL
1930

1931

RATEC5)

I
II
III
IV

2.2
-7.2
2.2
9.5

1.9
-15.9
-2.2
16.5

-0.3
-9.4
-4.3
6.4

7.C
15.6
11.9
8.2

-8.2
2.2
3.3
-4.2

4.7
24.5
9.5
-1.2

ANNUAL

0.9

-1 .5

-2.4

1C.2

-2.9

9.3

4.1
-1.2R

11.2
10.6R

-0.2
3.4R

9.6
8.OR

I
II

1 .4
2.4R

5.6
1 .1R

PERCENT CHANGE FROM CORRESPONDING QUARTER OF PREVIOUS YEARC6)
1980

1931

I
II
III
IV

2.7
0.0
-0.9
1.5

1.7
-2.8
-4.3
-0.6

-1.0
-2.7
-3.5
-2.1

9.2
9.7
11.2
1C.6

-4.4
-4.1
-1.5
-1.7

6.3
9.7
12.2
9.0

ANNUAL

0.9

- 1 .5

-2.4

1C.2

-2.9

9.3

-1.C
1.2R

11.7
1C.5

C.4
0.6

10.2
6.4R

I
II

1.3
3.8R

SEE FOOTNOTES FOLLOWING TABLE 6.
R=REVISED
P=PRELIMINARY




0.3
5.OR

AUGUST 26/ 1981
SOURCE: BUREAU CF LABOR

STATISTICS

F O O T N O T E S , TABLES 1-6
S O U R C E : OUTPUT DATA FROM BUREAU OF E C O N O M I C A N A L Y S I S , U . S . D E P A R T M E N T OF C O M M E R C E , AND THE FEDERAL RESERVE B O A R D .
C O M P E N S A T I O N AND HOURS DATA FROM THE BUREAU OF LABOR S T A T I S T I C S , U.S- D E P A R T M E N T OF LABOR, AND THE BUREAU OF E C O N O M I C A N A L Y S I S .
R E L I A B I L I T Y : THE AVERAGE OF THE R E V I S I O N S IN THE INDEX OF P R O D U C T I V I T Y IN THE PRIVATE BUSINESS SECTOR, W I T H O U T REGARD TO SIGN
BETWEEN THE FIRST AND THIRD P U B L I S H E D E S T I M A T E S IS 0.63 INDEX P O I N T S (0.53 PER C E N T ) ; THAT IS, IN ABOUT HALF OF THE C A S E S , THE
A B S O L U T E VALUE OF THE REVISION FROM THE FIRST TO THE THIRD ESTIMATE OF THE INDEX — A B O U T 9.0 DAYS--WAS LESS THAN 0.63 POINTS (0.53
P E R C E N T ) . ( C A L C U L A T E D ON THE BASIS OF DATA FOR THE JANUARY 1977 TO JULY 1980 P E R I O D . )
(1)

WAGES AND S A L A R I E S OF E M P L O Y E E S PLUS E M P L O Y E R S ' C O N T R I B U T I O N S FOR SOCIAL INSURANCE AND PRIVATE BENEFIT P L A N S . EXCEPT FOR
N O N F I N A N C I A L C O R P O R A T I O N S , WHERE THERE ARE NO S E L F - E M P L O Y E D , DATA ALSO INCLUDE AN ESTIMATE OF WAGES, S A L A R I E S , AND
S U P P L E M E N T A L P A Y M E N T S FOR THE S E L F - E M P L O Y E D .

(2)

C O M P E N S A T I O N PER HOUR A D J U S T E D FOR C H A N G E S IN THE CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS.'

(3)

NONLABOR P A Y M E N T S INCLUDE P R O F I T S , D E P R E C I A T I O N , I N T E R E S T , RENTAL INCOME, AND INDIRECT T A X E S .

(4)

CURRENT DOLLAR G R O S S P R O D U C T D I V I D E D BY C O N S T A N T DOLLAR GROSS P R O D U C T .

(5)

PERCENT CHANGE C O M P O U N D E D AT ANNUAL RATE FROM THE ORIGINAL DATA RATHER THAN INDEX N U M B E R S .

(6)

C U R R E N T QUARTER D I V I D E D BY C O M P A R A B L E QUARTER A YEAR A G O .

(7)

Q U A R T E R L Y M E A S U R E S A D J U S T E D TO ANNUAL E S T I M A T E S OF O U T P U T (GROSS P R O D U C T O R I G I N A T I N G ) FROM THE BUREAU OF E C O N O M I C A N A L Y S I S ,
U . S . D E P A R T M E N T OF C O M M E R C E .

(8)

UNIT NONLABOR COST INCLUDES D E P R E C I A T I O N , I N T E R E S T , AND INDIRECT T A X E S .

(9)

TOTAL UNIT COST IS THE SUM OF LABOR AND NONLABOR C O S T S .

(10) UNIT PROFITS INCLUDE C O R P O R A T E PROFIT AND INVENTORY VALUATION

ADJUSTMENT.

(11) THE DURABLE SECTOR INCLUDES' THE FOLLOWING 2-DIGIT SIC I N D U S T R I E S : PRIMARY METAL; FABRICATED METAL P R O D U C T S ; N O N E L E C T R I C A L
M A C H I N E R Y ; E L E C T R I C A L M A C H I N E R Y ; T R A N S P O R T A T I O N E Q U I P M E N T ; I N S T R U M E N T S ; LUMBER AND LUMBER P R O D U C T S ; F U R N I T U R E AND F I X T U R E S ;
S T O N E , CLAY, & G L A S S P R O D U C T S ; AND M I S C E L L A N E O U S M A N U F A C T U R E S .
(12) THE NONDURABLE SECTOR INCLUDES THE FOLLOWING 2-DIGIT SIC I N D U S T R I E S : TEXTILE MILL P R O D U C T S ; APPAREL P R O D U C T S ; LEATHER
AND LEATHER P R O D U C T S ; P R I N T I N G AND P U B L I S H I N G ; C H E M I C A L S AND CHEMICAL P R O D U C T S ; PETROLEUM P R O D U C T S ; RUBBER AND P L A S T I C
P R O D U C T S ; F O O D S ; AND TOBACCO P R O D U C T S .
(13) S C H E D U L I N G OF THE RELEASE OF THE NEW CONSUMER PRICE INDEX FOR ALL URBAN C O N S U M E R S (CPI-U) P R E C L U D E S THE USE OF REAL HOURLY
C O M P E N S A T I O N (HOURLY C O M P E N S A T I O N A D J U S T E D FOR QUARTERLY CHANGES IN THE C P I - U ) WITH PRELIMINARY P R O D U C T I V I T Y AND C O S T
M E A S U R E S . THESE WILL BE P U B L I S H E D TOGETHER WITH REVISED OUTPUT AND LABOR INPUT MEASURES WITH THE NEXT REGULAR EDITION OF
P R O D U C T I V I T Y AND C O S T S , A P P R O X I M A T E L Y 30 DAYS AFTER THE P R E L I M I N A R Y M E A S U R E S .
*
*
*
*
*
*
*
*

THE P R O D U C T I V I T Y AND A S S O C I A T E D COST M E A S U R E S IN THIS PRESS RELEASE DESCRIBE THE RELATIONSHIP
BETWEEN OUTPUT IN REAL TERMS AND THE LABOR TIME INVOLVED IN ITS P R O D U C T I O N . THEY SHOW THE
CHANGES FROM PERIOD TO PERIOD IN THE AMOUNT OF LABOR TIME REQUIRED TO PRODUCE A UNIT OF O U T P U T .
ALTHOUGH THESE M E A S U R E S RELAT£ OUTPUT TO HOURS OF ALL P E R S O N S ENGAGED IN A SECTOR, THEY DO NOT
MEASURE THE S P E C I F I C C O N T R I B U T I O N S OF LABOR, C A P I T A L , OR ANY OTHER FACTOR OF P R O D U C T I O N . RATHER,
THEY R E F L E C T THE J O I N T E F F E C T S OF MANY I N F L U E N C E S , INCLUDING CHANGES IN T E C H N O L O G Y ; CAPITAL
I N V E S T M E N T ; LEVEL OF O U T P U T ; U T I L I Z A T I O N OF C A P A C I T Y ; ENERGY AND M A T E R I A L S ; THE ORGANIZATION
OF P R O D U C T I O N ; M A N A G E R I A L S K I L L ; AND C H A R A C T E R I S T I C S AND EFFORT OF THE WORK F O R C E .




*
*
*
*
*
*
*
*

Chart 1. Productivity, hourly compensation, unit costs and prices
In the private business sector

Chart 2. Productivity, hourly compensation, unit costs and prices
in the nonfarm business sector

(percent change from preceding quarter at annual rate)

(percent change from preceding quarter ot annual rate)

Output per hour of all persons

Output per hour of all persons

n

II
0.7

2.8

Compensation per hour of all persons

Compensation per hour of all persons

II
10.4

Unit labor cost

Unit nonlabor payments

II
5.0

35
30
25
20
15
10
5
0
-5
-10
-15

Implicit price deflator

II
9.6

15
10
5
0

Unit labor cost

II
7.3

II
6.6

15
10
5
0
-5
-10

II
8.8

25
20
15
10
5
0
-5

Unit non labor payments

II
2.7

30
25
20
15
10
5
0
-5
-10
-15

Implicit price deflator

II
6.9

20
15
10
5
0

20
15
10
5
0
(

1974

1975

1976




1977

1978

1979

1980

1981

1974

i

i

1975

!

i

i

.

1976

I

i

i

i

1977

I

i

.

.

1978

I

. . .

1979

I

. . .

1980

I

. . .

1981

I

Chart 3. Productivity, hourly compensation, unit costs and prices
in nonflnancial corporations

v hart 4. Unit costs, unit profits, and prices \n nonfinancial
corporations

(percent change from same quarter a year ago)

^percent change from same quarter a year ago)

Unit labor cost

Output per hour of all employees

II
6.4

15

20

10

10

5

0

0

30

-5

Compensation per hour of all employees

20
10

15
10

0

5

-10

Total unit cost

II
7.8

0

20

Unit labor cost

15

15

10

10

5

5
0

1

f

Unit profits

0

II
21.3
80

25

70

20

60

15

50

10

40

5

30

0

20
-5

10

15

0

10

-10
-20

5
0
, , I , , , 1 , , , 1 . , , I . , , I

1974

1975




1976

1977

1978

i , , 1 i i .

1979

1980

1981

I

i

I

i

I

-30

, , 1, , , 1, , , l , , , l , , ,I
1974

1975

1976

1977

1978

1979

1980

1981