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News
Bureau of Labor Statistics
Lawrence Fulco
Kathryn Hoyle
-2-
United States
Department
of Labor
Washington, D.C. 20212
(202) 523-9261
(202) 523-1913
Table A. Productivity and costs: percent change at annual rate
(Seasonally adjusted)
Sector
Nonfinancial
corporations
4.7
Productivity in nonfinancial corporations increased 4.7 percent in the
third quarter of 1980 at a seasonally adjusted annual rate, the Bureau of Labor
The increase
reflected a 0.6 percent increase in output and a 3.9 percent decline in hours of
all persons.
sector since the fourth quarter of 1973, and the largest increase since 1975.
In the f i r s t 2 quarters, output per al1-employee hour dropped 0.1 percent and
Hours
9.6
4.7
2.3
0.6
-3.9
-1.0
0.3
8.7
8.4
1.5
-0.8
Nonfarm business
1.5
8.8
7.2
1.6
0.1
-1.4
-0.7
12.1
L2.9
4.6
-8.6
-7.9
-3.0
12.2
15.7
4.7
-H.9
-9.2
2.4
12.3
9.6
4.8
-3.7
-6.0
Manufacturing
Durable
Nondurable
PRELIMINARY
Third Quarter ]L979 to Third Quarter 1980
Nonfinancial
corporations
0.6
stock and commodity brokers, and finance and insurance companies and accounts
9.4
-2.4
-2.2
-2.8
Private business
-0.8
9.9
10.8
-2.5
-2.6
-1.9
Nonfarm business
-0.7
9.9
10.7
-2.5
-2.5
-1.9
Manufacturing
-2.4
11.6
14.4
-1.0
-8.7
-6.5
for about two-thirds of the private business sector.
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 u t i l i z a t i o n , energy use, and
managerial s k i l l s , as well as the s k i l l s and efforts of the work force.
10.0
REVISED
The nonfinancial corporate sector includes all
corporations doing business in the United States with the exception of banks,
Output
Private business
This was the f i r s t quarter that productivity increased in this
1.9 percent, respectively.
Real
hourly
compensation
REVISED
Nonfinancial Corporate Sector
Third Quarter 1930
Statistics of the U.S. Department of Labor reported today.
Unit
labor
cost
PRELIMINARY
Second quarter* 1980 to third quarter 1980
USOL 80-747
For Release 10:00 AM EST
Wednesday, November 26, 1980
PRODUCTIVITY AND COSTS
Productivity
Hourly
compensation
Durable
-3.0
12.2
15.7
-0.5
-11.1
-8.4
Nondurable
-1.9
11.2
13.3
-1.4
-5.2
-3.4
-3Revised third-quarter measures were also reported today for the private
business, nonfarm business, and manufacturing sectors. The productivity gains
reported October 27 for the private business and nonfarm business sectors have
been revised downward almost entirely as a result of revisions in the
output measures; in the private business sector productivity increased 0.3
-4The implicit price deflator, which shows the effects of changes 1n unit
labor cost, unit nonlabor cost, and unit profits, increased 9.6 percent 1n the
third quarter, compared with a 12.1 percent increase one quarter earlier.
Compared with the third quarter of last year, productivity increased 0.6
percent, as output declined 2.2 percent and hours f e l l -2.8 percent.
Hourly
compensation increased 10.0 percent, and unit labor cost rose 9.4 percent.
percent, and, in the nonfarm business sector, the gain was 1.5 percent.
hourly compensation declined 2.4 percent, and unit profits f e l l 9.7 percent.
Preliminary measures had shown gains of 1.4 percent and 2.6 percent,
Revised measures
respectively. In maufacturing, the productivity decline was revised to 0.7
percent, rather than the 2.7 percent drop reported earlier. A summary of
third-quarter productivity and cost measures appears 1n table A; details are
found 1n tables 1-6.
Compensation and costs
Hourly compensation, which includes wages and salaries, supplements,
Revised third-quarter productivity and cost measures for the private
business, nonfarm business, and" manufacturing sectors released today Incorporate
the most recent measures of output and hours and the revised monthly index of
industrial production from the Board of Governors of the Federal Reserve. The
revised measures show productivity Increased 0.3 percent In the private business
sector, 1.5 percent in the nonfarm business sector, and declined 0.7 percent in
manufacturing.
Previously, these movements had been reported at 1.4 percent,
employer contributions to employee-benefit plans, and employment taxes,
2.6 percent, and -2.7 percent, respectively.
Increased at a 9.6 percent annual rate in the nonfinancial corporate sector 1n
revisions stem mainly from changes 1n the estimates of third-quarter output.
the third quarter of 1980 (seasonally adjusted). One quarter earlier,
Table B compares preliminary and revised third-quarter measures.
compensation Increased 11.1 percent. Real hourly compensation—which 1s
adjusted for changes in the Consumer Price Index for All Urban Consumers
(CPI-u)—Increased 2.3 percent 1n the third quarter of 1980,
Unit labor cost, which is Influenced by changes in hourly compensation and
productivity, increased 4.7 percent in the third quarter, compared with a 13.2
percent increase during the second quarter. This was the smallest increase 1n
this series since the second quarter of 1978 when a 2.9 percent gain was
recorded.
Unit profits increased 27.5 percent in the third quarter, compared with a
34.7 percent decline during the second quarter. This marked the first increase
in profit per unit of output since the fourth quarter of 1978, when a 19.5
percent gain occurred.
Real
As can be seen 1n table B, the
-5Table B.
Preliminary and revised third quarter measures of productivity and costs.
Quarterly change at annual rate.
(Seasonally adjusted)
Private business sector Nonfarm business sector
Measure
Preliminary
Revised
Preliminary
Revised
Manufacturing
Preliminary
Revised
Output per hour
of all persons
1.4
0.3
2.6
1.5
-2.7
-0.7
Compensation per
hour
8.3
8.7
8.4
8.8
12.0
12.1
Unit labor cost
6.8
8.4
5,7
7,2
15,1
12.9
Real compensation
per hour
1.0
1.5
1.1
1.6
4.5
4.6
Output
0.3
-0.8
1.1
0.1
-10.1
-8.6
-1.1
-1.0
-1.4
-1.4
-8.3
-7.9
Hours
HOURLY
YEAR AND
QUARTER
TABLE 1 . PRIVATE BUSINESS
C O M P E N S A T I O N , U N I T LABOR
OUTPUT PER
HOUR
OF ALL PERSONS
OUTPUT
SECTOR, ALL PERSONS:
PRODUCTIVITY,
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
HOURS
OF ALL
PERSONS
INDEXES
1979
121.5
COMPENSATION PER
HOUR(l)
REAL
COMPENSATION PER
H0UR(2)
UNIT
LABOR
COST
117.9
117 .0
115.8
114.2
205.9
211.7
217.0
221.1
180.8
183.7
185.6
188.3
197.2
202.0
206.1
209.7
UNIT NONLABOR PAYMENTS(3)
IMPLICIT
PRICE
DEFLATOR
1967=100
I
II
III
IV
118.9
118.3
117.8
117.7
144.4
143.4
143.8
144.8
121 .3
122.0
123.0
244.8
250.4
255.7
260.3
ANNUAL
118.3
144.1
121.8
253.1
116.4
214.0
184.4
203.8
1980
I
II
III
117.7
116.8
116.9R
144.8
140.3
140.OR
123.1
120.0
119.7
267.6
275.3
281.1R
112.9
112.5
112.9R
227.5
235.6
240.4R
190.0
192.3
200.OR
214.5
220.6
226.4R
1979
I
II
III
IV
-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
-9.6
-l.OR
11.7
12,0
8.7k
-4.5
-1.5
1.5R
12.1
15.1
8.4R
3.8
4.9
9.4
11.9
17.OR
11.OR
PERCENT CHANGE FROM PREVIOUS QUARTER AT ANNUAL RATE(5)
ANNUAL
1980
I
II
III
0.2
-12.0
-0.8R
-0.3
-2.7
0.3R
PERCENT CHANGE FROM
1979
I
II
III
IV
ANNUAL
1980
I
II
III
0.3
-0.7
-1.6
-1.7
5.5
2.2
1.4
0.5
5.3
2.9
3.0
2.3
9.0
9.4
9.4
9.2
-0.8
-1.1
-2.1
-3.2
8.7
10.2
11.2
11.1
9.7
5.7
4.8
3.9
9.0
8.7
9.1
8.7
-0.8
2.4
3.3
9.4
-1.7
10.3
5.8
8.9
-1.0
-1.2
-0.8R
0.3
-2.2
-2.6R
9.3
9.9
9.9R
-4.2
-3.9
-2.5R
10.5
11.3
10.8R
5.1
4.7
7.8R
8.8
9.2
9.9R
SEE FOOTNOTES FOLLOWING TABLE
R=REVISED
P=PRELIMINARY
CORRESPONDING QUARTER OF PREVIOUS YEAR(6)
1.3
-1.0
-1.9
6.
NOVEMBER 26, 1980
SOURCE: BUREAU OF LABOR STATISTICS
TABLE 2 . N O N F A R M B U S I N E S S 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 ,
HOURLY C O M P E N S A T I O N , UNIT LABOR C O S T , AND P R I C t o , S E A S O N A L L Y A D J U S T E D
YEAR AND
QUARTER
REAL
COMPENSATION PER
H0UR(2)
UNIT
LABOR
COST
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
125.3
247.9
114.0
214.4
178.6
202.1
126.7
123.8
123.3
262.2
269.0
274.7R
110.6
109.9
110.3R
228.2
236.3
240.5R
185.9
190.0
197.5R
213.7
220.4
225.8R
OUTPUT PEP
HOUR
OF ALL PERSONS
OUTPUT
HOURS
OF ALL
PERSONS
116.6
115,4
115.0
115.2
145.5
144.2
144.6
145.5
124.8
124.9
125.7
126.2
115.7
144.9
114.9
113.8
114.3R
145.6
140.9
140.9R
COMPENSATION PER
HOUR(l)
UNIT NONLABOR PAYMENTS(3)
IMPLICIT
PRICE
DEFLATOR
INDEXES 1967=100
1979
I
II
III
IV
ANNUAL
1980
I
II
III
PERCENT CHANGE FROM PREVIOUS QUARTER AT ANNUAL RATE(5)
1979
I
II
II I
IV
ANNUAL
1980
II
III
-3.3
-3.9
-1.5
0,8
1.2
-3.6
1.2
2.5
4.7
0.4
2.7
1.7
10.2
8.1
8.5
9.5
-0.9
-4.2
-4.4
-3.6
14.0
12.5
10.1
8.6
-3.9
7.7
6.6
4.6
8.1
11.0
9.0
7.4
-1.1
2.4
3.5
9.0
-2.1
10.2
5.1
8.6
10.7
10.8
8.8R
-5.3
-2.6
1.6R
12.0
15.0
7.2R
7.5
9.1
16.8R
10.6
13.2
10.OR
8.2
5.0
4.3
3.7
8.3
8.5
9.0
8.9
-1.1
-3.7
1.5R
0.2
-12.3
0.1R
1.3
-8.9
-1.4
PERCENT CHANGE FROM C O R R E S P O N D I N G
1979
I
II
II I
IV
ANNUAL
1930
I
II
III
0.4
-l.l
-2.0
-2.0
-1.1
-1.4
-1.4
-0.7R
SEE FOOTNOTES FOLLOWING TABLE 6.
R=REVIS£D
?=PRELIMINARY
5.9
2.2
1.3
0.3
5.5
3.3
3.4
2.4
2.4
3.5
0.1
-2.3
-2.5R
1.5
-0.9
-1.9
QUARTER
OF P R E V I O U S
'
YEAR{6)
8.7
8.9
8.9
9.1
-1.0
-1.6
-2.5
-3.3
9.0
-2.1
10.2
5.1
8.6
9.2
9.8
9.9R
-4.4
-4.0
-2.5R
10.8
11.4
10.7R
6.6
7.0
9.4R
9.5
10.0
10.3R
8.3
10.1
11.1
11.3
NOVEMBER 26, 1980
SOURCE: BUREAU OF LABOR STATISTICS
TABLE 3. N0NF1NANCIAL CORPORATIONS: PRODUCTIVITY, HOURLY COMPENSATION
UNIT LABOR COST, UNIT PROFITS, AND PRICES, SEASONALLY ADJUSTED
YEAR
AND
QUARTER
OUTPUT
PER ALLEMPLOYEE
HOUR
EMPLOYEE HOURLY
REAL
HOURS COMPENSA- HOURLY
TION
COMPEN(1)
SATION{2)
OUTPUT
UNIT
LABOR
COST
UNIT
NONLABOR
C0ST{3)
TOTAL
UNIT
COST
(9)
UNIT IMPLICIT
PRO- PRICE
FITS DEFLATOR
(10)
INDEXES 1967=100
1979
I
II
III
IV
118.1
117.3
117.2
117.1
155.1
154.1
154.3
155.1
131.4
131.4
131.7
132.4
237.3
242.1
247.1
252.1
114.3
113.1
111.9
110.6
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
191.6
196.3
200.4
204.0
ANNUAL
117.5
154.7
131.6
244.9
112.7
208.4
216.6
210.4
127.8
198.1
132.7
129.4
128.IP
258.8
265.7
271.8P
109.2
108.5
109.IP
221.1
228.0
230.7P
234.4
250.8
261.7P
224.3
233.6
238.2P
120.5
108.3
115.IP
208.9
215.0
219.9P
1980
I
II
III
117.1
116.5
117.9P
155.4
150.7
150.9P
1979
I
II
III
IV
-2.3
-2.7
-0.3
-0.4
2.5
-2.6
0.6
1.9
ANNUAL
-0.4
PERCENT CHANGE FROM PREVIOUS QUARTER AT ANNUAL RATE(5)
1930
I
II
III
-0.1
-1.9
4.7P
10.8
8.3
8.5
8.4
-0.4
-4.1
-4.3
-4.5
3.5
8.9
-2.2
9.3
7.3
0.9
-9.8
-3.9P
11.0
11.1
9.6P
-5.1
-2.3
2.3P
11.1
13.2
4.7P
15.4
31.1
18. 6P
4.9
0.1
0.9
2.3
3.1
0.8
-11.5
0.6P
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
8.8
0.4
7.9
12.2
17.6
8.2P
-10.9
-34.7
27.5P
9.9
12.1
9.6P
PERCENT CHANGE FROM CORRESPONDING QUARTER OF PREVIOUS YEAR(6)
1979
1980
I
II
III
IV
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
JAL
-0.4
3.1
3.5
8.9
-2.2
9.3
7.3
8.8
0.4
7.9
I
II
III
-0.9
-0.7
0.6P
0.2
-2.2
-2.2P
1.0
-1.5
-2.8P
9.0
9.7
10.OP
-4.5
-4.1
-2.4P
10.0
10.5
9.4P
13.5
17.7
18.7P
10.9
12.3
11 .7P
-7.6
-16.2
-9. 7P
9.0
9.5
9.7
SEE FOOTNOTES FOLLOWING TABLE 6.
R=REVISED
NOVEMBER 2 6 , 1 9 8 0
S O U R C E : B U R E A U OF LABOR
P=PRELIMINARY
TABLE
4 . MANUFACTURING
SECTOR:
PRODUCTIVITY,
HOURLY
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
H0UR(2)
UNIT
LABOR
COST
INDEXES 1967=100
1979
1980
I
II
III
IV
ANNUAL
i'
II
III
128.4
128.7
129.5
129.1
139.4
138.5
138.4
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
188.8
192.6
195.1
199.9
129.2
138.6
107.3
250.8
115.3
194.1
128.2
126.7
126.4R
137.4
129.2
126.3R
107.2
102.0
99.9R
264.6
274.1
282.1R
111.6
112.0
113.2R
206,
216.
223.1R
PERCENT CHANGE FROM PREVIOUS QUARTER AT ANNUAL
1979
1980
RATE(5)
I
II
III
IV
-3.2
1.1
2.5
-1.3
3.9
-2.5
-0.3
-1.3
7.3
-3.6
-2.7
-0.1
10.1
9.6
7.8
8.8
-0.9
-2.8
-4.9
-4.2
13,
8,
5.2
10.2
ANNUAL
0.8
3.1
2.2
9.1
-2.0
8.2
-2.8
-4.7
-0.7R
-1.6
-21.8
-8.6R
1.3
-18.0
-7.9R
10.5
15.2
12.1R
-5.5
1.4
4.6R
13.7
20.9
12.9R
I
II
III
PERCENT CHANGE FROM CORRESPONDING QUARTER OF PREVIOUS YEAR(6)
1979
I
II
III
IV
ANNUAL
1980
I
II
III
1.6
0.8
0.1
0.3
7.0
3.7
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
8.3
8.9
9.3
0.8
3.1
2.2
9.1
-2.0
8.2
0.2
1.6
2.4R
-1.4
-6.7
-8.7R
-1.3
-5.2
-6.5R
-4.4
-3.4
-l.OR
9.3
12.4
14.4R
SEE FOOTNOTES FOLLOWING TABLE 6.
R=REVISED
P=PRELIMINARY
9.2
10.5
11.6
NOVEMBER 26, 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
INDEXES
1979
I
II
III
IV
ANNUAL
1980
I
II
III
COMPENSATION PER
HOUR(l)
REAL
COMPENSATION PER
H0UR(2)
1967=100
120.9
121.3
121.0
120.8
135.4
134.1
133.2
132.6
112.0
110.6
110.0
109.8
243.4
249.0
253.6
258.5
117.2
116.3
114.8
113.4
201.3
205.3
209.5
214.1
121.3
133.8
110.3
251.8
115.8
207.5
119.3
118.3
117.4R
131.4
122.1
118.3R
110.1
103.2
100.7R
266.3
276.5
284.6R
112.3
112.9
114.3R
223.2
233.7
242.3R
PERCENT CHANGE FROM PREVIOUS QUARTER AT ANNUAL
1979
1980
UNIT
LABOR
COST
RATE(5)
I
II
III
IV
-4.8
1.3
-0.9
-0.8
4.0
-3.9
-2.7
-1.7
9.3
-5.2
-1.9
-0.9
9.8
9.6
7.6
8.1
-1.3
-2.9
-5.1
-4.8
15.3
ANNUAL
-0.1
3.2
3.3
8.9
-2.1
9.0
-4.7
-3.2
-3.OR
-3.4
-25.5
-11.9R
1.3
-23.0
-9.2R
12.6
16.2
12.2R
-3.7
2.2
4.7R
18.2
20.1
15.7R
I
II
III
9.0
PERCENT CHANGE FROM CORRESPONDING QUARTER OF PREVIOUS YEAR(6)
1979
1980
I
II
III
IV
1.1
-0.1
-1.2
-1.3
8.7
4.3
1.4
-1.1
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
9.1
10.3
10.2
JAL
-0.1
3.2
3.3
8.9
-2.1
9.0
I
II
III
-1.3
-2.4
-3.OR
-1.7
-6.7
-8.4R
9.4
11.1
12.2
-4.1
-2.9
-0.5R
10.9
13.8
15.7R
SEE FOOTNOTES FOLLOWING TABLE 6,
R=REVISED
P=PRELIMINARY
-3.0
-8.9
-11.1R
NOVEMBER 26, 1980
SOURCE: BUREAU OF LABOR STATISTICS
TABLE 6. NONDURABLE MANUFACTURING SECTOR: P R O D U C T I V I T Y , HOURLY
C O M P E N S A T I O N , UNIT LABOR COST, SEASONALLY A D J U S T E D ( 1 2 )
YEAR AND
QUARTER
O U T P U T PER
HOUR
OF ALL PERSONS
OUTPUT
(7)
HOURS
OF ALL
PERSONS
INDEXES
1979
I
II
III
IV
ANNUAL
1980
I
II
III
COMPENSATION PER
HOUR(l)
REAL
COMPENSATION PER
HOUR(2)
1967=100
141.0
141.2
143.9
143.1
145.9
145.7
147.0
146.7
103,
103,
102.
102.5
238.6
244.5
249.3
255.4
114.9
114.3
112.9
112.0
169.2
173.2
173.3
178.5
142.4
146.3
102.7
247.2
113.7
173.5
143.1
140.4
141.2R
147.1
140.7
139.4R
102.8
100.2
98.7
259.6
269.1
277.1R
109.5
109.9
111.2R
181.4
191.7
196.2R
PERCENT CHANGE FROM PREVIOUS QUARTER AT ANNUAL
1979
I
II
III
IV
ANNUAL
1980
I
II
III
UNIT
LABOR
COST
RATE(5)
-0.5
0.5
7.8
-2.1
3.7
-0.4
3.5
-0.8
4.2
-0.9
-4.0
1.3
10.2
10.3
7.9
10.3
-0.9
-2.2
-4.8
-2.9
10.7
9.7
0.2
12.6
2.2
2.8
0.6
9.1
-2.0
6.7
0.0
-7.5
2.4R
1.2
-16.4
-3.7R
1.2
-9.6
-6.OR
6.7
15.5
12-3R
6.7
24.9
9.6R
1.6
4.8R
PERCENT CHANGE FROM CORRESPONDING QUARTER OF PREVIOUS YEAR(6)
1979
I
II
III
IV
ANNUAL
1980
I
II
III
2.5
2.2
2.3
1.4
4.5
2.7
2.6
1.5
1.9
0.5
0.3
0.1
2.2
2.8
1.5
-0.6
-1.9R
0.9
-3.4
-5.2R
SEE FOOTNOTES FOLLOWING TABLE 6.
R=REVISED
P=PRELIMINARY
9.0
9.7
-1.5
-1.4
-2.4
-2.7
5.5
6.7
6.5
8.2
0.6
9.1
-2.0
6.7
-0.6
-2.9
-3.4
8.8
10.0
11.2
-4.7
-3.8
-1.4
7.2
10.7
13.3R
NOVEMBER 26, 1980
SOURCE: BUREAU OF LABOR
STATISTICS
F O O T N O T E S , T A B L E S 1-6
S O U R C E : O U T P U T D A T A F R O M B U R E A U 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 F E D E R A L R E S E R V E B O A R D .
C O M P E N S A T I O N AND H O U R S DATA FROM THE B U R E A U OF L A B O R S T A T I S T I C S , U . S . D E P A R T M E N T OF L A B O R , AND THE B U R E A U 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 A V E R A G E 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 P R I V A T E B U S I N E S S S E C T O R , W I T H O U T R E G A R D TO S I G N ,
B E T W E E N THE F I R S T AND T H I R D 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 A B O U T H A L F OF THE C A S E S , THE
A B S O L U T E V A L U E OF THE R E V I S I O N F R O M THE F I R S T TO THE T H I R D E S T I M A T E OF THE I N D E X - - A 3 0 U T 90 D A Y S - - W A S L E S S THAN 0.63 P O I N T S ( 0 . 5 3
PERCENT).
( C A L C U L A T E D ON THE B A S I S OF D A T A FOR THE J A N U A R Y 1 9 7 7 TO J U L Y 1 9 8 0 P E R I O D . )
(1)
W A G E S AND S A L A R I E S OF E M P L O Y E E S P L U S E M P L O Y E R S ' C O N T R I B U T I O N S FOR S O C I A L I N S U R A N C E AND P R I V A T E B E N E F I T P L A N S . E X C E P T
N O N F I N A N C I A L C O R P O R A T I O N S , W H E R E T H E R E ARE NO S E L F - E M P L O Y E D , D A T A A L S O I N C L U D E AN E S T I M A T E OF W A G E S , 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 H O U R A D J U S T E D FOR C H A N G E S
(3)
NONLABOR PAYMENTS
(4)
C U R R E N T D O L L A R 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 D O L L A R G R O S S
(5)
P E R C E N T C H A N G E C O M P O U N D E D AT A N N U A L
(6)
C U R R E N T Q U A R T E R D I V I D E D BY C O M P A R A B L E
(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 A N N U A L E S T I M A T E S OF O U T P U T ( G R O S S P R O D U C T O R I G I N A T I N G ) FROM THE B U R E A U OF E C O N O M I C
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 ,
(9)
T O T A L U N I T C O S T IS THE SUM OF L A B O R AND N O N L A B O R
IN THE C O N S U M E R P R I C E INDEX FOR ALL URBAN
INCLUDE PROFITS, DEPRECIATION,
(10) UNIT PROFITS INCLUDE CORPORATE
INTEREST, RENTAL
I N C O M E , AND I N D I R E C T
CONSUMERS.
TAXES.
PRODUCT.
RATE F R O M THE O R I G I N A L D A T A R A T H E R THAN INDEX
Q U A R T E R A YEAR
FOR
NUMBERS.
AGO.
I N T E R E S T , AND I N D I R E C T
ANALYSIS,
TAXES.
COSTS.
P R O F I T AND I N V E N T O R Y V A L U A T I O N
ADJUSTMENT.
( 1 1 ) THE D U R A B L E S E C T O R I N C L U D E S THE F O L L O W I N G 2 - D I G I T SIC I N D U S T R I E S : P R I M A R Y M E T A L ; F A B R I C A T E D M E T A L 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 ; L U M B E R AND L U M B E R 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 , C L A Y , & 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 .
( 1 2 ) THE N O N D U R A B L E S E C T O R I N C L U D E S THE F O L L O W I N G 2 - D I G I T SIC I N D U S T R I E S : T E X T I L E MILL P R O D U C T S ; A P P A R E L P R O D U C T S ;
A N D L E A T H E R 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 C H E M I C A L P R O D U C T S ; P E T R O L E U M P R O D U C T S ; R U B B E R AND
P R O D U C T S ; F O O D S ; AND T O B A C C O P R O D U C T S .
LEATHER
PLASTIC
( 1 3 ) S C H E D U L I N G OF THE R E L E A S E OF THE NEW C O N S U M E R P R I C E INDEX FOR ALL URBAN C O N S U M E R S ( C P I - U ) P R E C L U D E S THE USE OF REAL H O U R L Y
C O M P E N S A T I O N ( H O U R L Y C O M P E N S A T I O N A D J U S T E D FOR Q U A R T E R L Y C H A N G E S IN THE C P I - U ) W I T H P R E L I M I N A R Y 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 . T H E S E W I L L BE P U B L I S H E D T O G E T H E R W I T H R E V I S E D O U T P U T AND L A B O R I N P U T M E A S U R E S WITH THE N E X T R E G U L A R E D I T I O N 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 D A Y S A F T E R 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 C O S T M E A S U R E S IN T H I S P R E S S R E L E A S E D E S C R I B E THE R E L A T I O N S H I P
B E T W E E N O U T P U T IN R E A L T E R M S AND THE L A B O R TIME I N V O L V E D IN ITS P R O D U C T I O N . THEY SHOW THE
C H A N G E S F R O M P E R I O D TO P E R I O D IN THE A M O U N T OF L A B O R TIME R E Q U I R E D TO P R O D U C E A UNIT OF O U T P U T .
A L T H O U G H T H E S E M E A S U R E S R E L A T E O U T P U T TO H O U R S OF ALL P E R S O N S E N G A G E D IN A S E C T O R , THEY DO NOT
M E A S U R E THE S P E C I F I C C O N T R I B U T I O N S OF L A B O R , C A P I T A L , OR ANY O T H E R F A C T O R OF P R O D U C T I O N . R A T H E R ,
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 , I N C L U D I N G C H A N G E S IN T E C H N O L O G Y ; C A P I T A L
I N V E S T M E N T ; L E V E L 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 ; E N E R G Y AND M A T E R I A L S ; THE O R G A N I Z A T I O N
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 E F F O R T OF THE WORK F O R C E .
*
*
*
*
*
*
*
Chart 1. Productivity, hourly compensation, unit costs and prices
in the private business sector
(percent change from preceding quarter at cnnua! rate)
Output per hour of all persons
15
10
5
0
-5
-10
Unit
15
10
5
0
abor cost
Unit nonlabor
III
8.3
20
15
10
5
0
-5
payments
III
17.0
35
30
25
20
15
10
5
0
-5
-10
-15
Implicit price deflator
III
11.0
20
15
10
5
0
i
i
i
1973
j
1974
1975
1976
1977
1978
1979
1980
I
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
III
1.5
15
10
5
0
-10
Compensation per hour of all persons
III
8*8
15
10
i—
u
Unit labor cost
Unit nonlabor
III
7.2
25
20
15
10
5
0
-5
payments
III
16.8
30
25
20
15
10
5
0
-5
-10
-15
Implicit price deflator
•.__ —.».»4 — — — — ——
I
1
I
1
1973
I
l
f
I
1974
1975
III
10.0
H
1976
20
15
10
5
0
h
1977
1978
1979
1980
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
in
0.6
15
10
5
0
-5
Compensation per hour of all emp oyees
15
10
5
0
Unit labor cost
15
10
5
0
Unit nonlabor payments
III
10.4
25
20
15
10
5
0
-5
Implicit price deflator
III
9.7
15
10
5
•+1973
1974
•
1975
-f
.
i
1976
.
-\
.
.
1977
.
h
.
.
1978
.
1
I
0
.
.
1979
1980
Chart 4. Unit costs, unit profits, and prices in nonfinancial
corporations
(percent change from some quarter a year ago)
Unit labor cost
in
9.4
10
0
Unit nonlabor cost
III
18.7
30
20
10
0
-10
Total unit cost
III
1U7
20
15
10
5
J
1
r
-.
I Unit profits
0
..
-9.7
80
70
60
50
40
30
20
10
0
-10
-20
-30
1973
1974
1975
1976
1977
1978
1979
1980
@FedFRASER