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News Bureau of Labor Statistics United States Department of Labor Washington, D.C. 20212 Historical, technical information: (202) 523-9261 Current data : (202) 523-1221 Media contact: (202) 523-1913 USDL 92-60 TRANSMISSION OF MATERIAL IN THIS RELEASE IS EMBARGOED UNTIL 10:00 A.M. EST, WEDNESDAY FEBRUARY 5, 1992 PRODUCTIVITY AMD COSTS Preliminary Fourth Quarter and Annual Averages, 1991 The Bureau of Labor Statistics of the U.S. Department of Labor today reported preliminary fourth-quarter seasonally-adjusted annual rates of productivity change-^ &s measured by output per hour of all persons—and annual changes for the full year 1991. The changes were: Business sector , Nonfarm business sector Manufacturing. Durable gbods manufacturing. Nondurable goods manufacturing... Fourth quarter 1.6 1.1 1.5 1.1 2.1 Annual averages 1990-1991 0.2 0.2 1.4 1.3 1.6 In business and nonfarm business, productivity rose only slightly in 1991, the second straight year in which productivity was virtually unchanged. Growth in manufacturing productivity was stronger than in the more comprehensive business sectors, but resulted from larger declines in output and hours than in the business sectors. In the fourth quarter, productivity increased in business, nonfarm business, and manufacturing as output showed little growth and hours declined. Fourth-quarter and annual 1991 measures are summarised in tables A and B and appear in detail in tables 1 through 5. THIRD-TO-rOURTH QUARTER CHANGES, 1991 Business Productivity increased at a 1.6 percent annual rate during the fourth quarter of 1991 in the business sector, as output growth slowed to a 0.1 percent annual rate and hours of all persons engaged in the sector declined 1.5 percent (seasonally adjusted). During the third quarter of 1991, business productivity had increased 1.1 percent, but output grew 1.8 percent and hours rose 0.7 percent (table 1). Table A. Productivity and costs: /Preliminary fourth-quarter 1991 measures (Seasonally adjusted annual rates) Productivity Sector Output Hours Hourly compensatibn Real hourly compensation Unit labor costs Percent change from preceding quarter Business Konfarm business Manufacturing Durable Nondurable 1.6 1.1 1.5 1.1 2.1 2.9 2.4 -0.2 -0.7 1.3 -1.2 -1.5 -1.1 -0.7 -2.3 4.0 5.4 0.8 2.2 3.6 1.5 2.2 -0.9 2.5 4.3 0.1 0.1 0.0 0.8 1.3- Percent change from same quarter a year ago Business Nonfarm business Manufacturing Durable Nondurable 1.1 1.0 1.9 1.5 2.4 -0.4 -0.5 -0.3 -2.0 2.0 -1.5 -1.4 -2.2 -3.5 -0.3 3.2 3.1 3.5 4.0 2.9 0.3 0.2 0.5 1.1 0.0 2.1 2.1 1.5 2.5 0.5 Hourly compensation increased at a 2.9 percent annual rate during the fourth quarter of 1991, compared with a 2.8 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 1.3 percent annual rate during the fourth quarter, down from a 1.7 percent increase one quarter earlier. This was the smallest Increase in these costs since the first quarter of 1988 (when a 0.2 percent decline occurred). Real hourly compensation, which takes into account changes in the Consumer Price Index for All Urban Consumers (CPI-U), fell 0.2 percent in both the third and fourth quarters. This series declined during 9 of the past 12 quarters. The implicit price deflator for business output, which reflects changes in unit labor costs and unit nonlabor payments, increased a scant 1.0 percent in the fourth quarter, the smallest increase since 1970 (when a 0.9 percent increase occurred in the third quarter). During the third quarter of 1991, prices of the goods and services which comprise business output had increased at a 1.8 percent annual rate. Nonfarm business In the nonfarm business sector, productivity gained 1.1 percent in the fourth quarter. Output was unchanged, and hours of all persons—employees, proprietors, and unpaid family workers—fell 1.1 percent. The decline in hours resulted from a 0.9 percent reduction in employment (the sixth in a row) and a 0.2 percent shortening of the average work week. During the third quarter, nonfarm productivity had increased 0.9 percent as output grew 1.6 percent and hours increased 0.7 percent (table 2). As in the more comprehensive business sector, the drop in hours was the third in 1991. Hourly compensation rose 2.4 percent in the fourth quarter, but fell 0.7 percent when the increase in the CPI-U was taken into account. As in the more comprehensive business sector, this series has declined in 9 quarters of the 1989-1991 period. Unit labor costs increased 1.3 percent, compared with a 1.8 percent rise during the third quarter. The implicit price deflator for nonfarm business output rose 1.5 percent in the fourth quarter, compared with a 2*1 percent increase one quarter earlier. This was the smallest rise in prices since 1986 (when a 0.9 percent increase was recorded in the second quarter). Manufacturing Manufacturing productivity rose at a 1.5 percent seasonally adjusted annual rate in the fourth quarter of 1991, not much different from the more comprehensive business sector reported above. Output rose 0.8 percent and hours of all persons decreased 0.7 percent. The decline in hours was the third decrease of 1991. During the third quarter, productivity had increased 4.0 percent, as output rose 7.1 percent and hours gained 3.0 percent (table 3). Both durable and nondurable goods industries experienced productivity increases in the fourth quarter, but the movements reflected opposite trends in output and hours. While both underlying series declined among durable goods manufacturing industries, both output and hours grew in nondurable goods production (tables 4 and 5). Hourly compensation of all manufacturing workers increased 4.0 percent during the fourth quarter, but edged up only 0.8 percent when the increase in consumer prices was taken into account. Unit labor costs rose at a 2.5 percent annual rate in the fourth quarter of 1991, compared with a 1.7 percent decrease during the third quarter. ANNUAL CHANGES, 1990-1991 Business Business productivity increased 0.2 percent when the annual average for 1990 is compared with the average for 1991 (table B), the same increase as in 1990* Output fell 1.5 percent in 1991, and hours of all persons engaged in the sector decreased 1.7 percent. During 1990, output and hours both grew somewhat. Hourly compensation increased 3.9 percent in 1991, compared with a 5.4 percent increase during 1990. Unit labor costs increased 3.7 percent during 1991, compared with a 5,2 percent increase one year earlier. Real hourly compensation declined 0.3 percent in 1991, compared with no change in 1990. At 102.8, the index of real hourly compensation for 1991 is lower than that of any year since 1985, when it stood at 101.3 (1982-100). Table B. Annual changes in productivity and related measures, 1982-1991 Sector and measure 1982 1983 1984 1985 1986 1987 0.1 -2.3 Hours. . * ... ........ -2.5 2.2 7,6 1.3 Real hourly comp... Unit labor costs . . . 7.4 3.7 0 .5 1.5 2.3 8.2 5.7 4.2 -0.1 1.9 1.4 3.6 2.1 4.5 0,9 3.0 2 .0 2 .8 0 .7 4.9 3 .0 2 .8 1.0 4.1 3.1 3.5 -0.1 2.5 0.9 4.3 3.3 4.3 0.1 3.3 -0.7 1.8 2,6 3.5 -1.2 4.3 0.8 0.9 -0.9 3.3 3.4 -0.2 2.6 3.5 4.1 4.9 0.7 2.2 -1.4 -1.8 4.0 7.1 2.9 3.9 -0.2 -0.1 1988 1989 1990 1991 Business: Nonf arm Business: Productivity. *...». On^T*kn+* ' 0.1 -2 4 -2.4 7.5 Real hourly comp. . . 1.2 Unit labor costs . . . 7.4 Hours. ............. Manufacturings Productivity. . . . . 3.8 -5.0. Output . . . . . . , .••-.'. Hours. . . . ''.'•.• ^ .../..-8.5 .' 9.4 Hourly comp. ....... Real hourly comp. . , 3.1 Unit labor costs . . .5.4 4.1 r.ft 2.4 2.1 0.8 4 8 2 3 4 2.0 3.9 0.7 1.5 6.0 4.0 -0.3 1.9 2.5 4.2 0.6 3.3 1 .9 2 0.9 4 .9 3 .0 2 .9 2.9 2.6 9.4 6.6 3.1 -1.1 0.5 2.3 1.5 -0.8 5.0 1.4 2.7 4 3 ?,R -1 4 4 ,0 2 .1 -0 .3 4 .4,0 1.2 2.5 -0,7 -0.4 2.7 4.1 3.4 0 . 0 -1.4 3.2 4.3 0.5 0.9 0.4 4.0 -0.8 3.5 0.2 0.4 0.2 5.4 0.0 5.2 0.2 -1.5 -1.7 3.9 -0.3 3.7 -0 . 1 0.2 0 3 -1 ,J- .6O 0.3 -1.8 5.2 4.0 -0.2 -0.2 3.7 5.3 2.5 0.3 -2.2 5.3 -0.1 2.7 1.4 -2.2 -3.6 4.2 .0,0 2.7 Unit labor costs increased 3.7 percent during 1991, compared with a 5.2 percent increase a year earlier* Since productivity growth was the same in both years, the slower growth in these costs during 1991 reflected a slowing of the rate of gain of hourly compensation. NOTE: Future revisions due to the regular benchmarking of employment and hours measures to unemployment insurance records will affect measures incorporating labor input data (productivity, hourly compensation, real hourly Compensation, and hours of all persons). The new data might lower the growth of business labor input by 1.5 to 2*5 percentage points in the first quarter of 1991 and by less than half a percent in the annual movement. Labor input data for the business, nonfarm business, manufacturing, and nonfinancial corporate sectors may be similarly affected by the benchmarking. Nonf arm business Productivity also increased 0.2 percent in the nonfarm business sector during 1991, as output fell 1.6 percent and hours of all persons decreased 1.8 percent. Hourly compensation rose 4.0 percent in 1991, but fell 0.2 percent when the increase in the CPI-U was taken into account. Unit labor costs in the nonfarm business sector grew more slowly in 1991 than in 1990. This reduction reflected both an increase in productivity (compared with a slight decline in 1990) and a smaller gain in hourly compensation. Manufacturing Manufacturing productivity increased more rapidly in 1991 than in the more comprehensive business sectors reported above, growing 1.4 percent over the 1990 level. However, both output and hours simultaneously declined for the year as a whole for the first time since 1982.' Output fell 2.2 percent in 1991 and hours of all persons declined 3.6 percent. During 1990, productivity rose 2.5 percent, output inched ahead 0.3 percent, and hours decreased 2.2 percent. Hourly compensation of manufacturing workers increased 4.2 percent during 1991, but was unchanged when the increase in consumer prices was taken into account. This marked the fifth year in a row real hourly compensation fell or showed no growth for manufacturing workers. Unit labor costs rose 2.7 percent in both 1991 and 1990. Both durable and nondurable goods industries experienced productivity increases in 1991, but gains were faster for nondurables producers (tables 4, 5). Historical productivity and cost measures for manufacturing (total, durable, and nondurable) are shown in appendix tables 1-3 from 1977 forward. They incorporate unpublished revisions to output and compensation measures prepared by the Bureau of Economic Analysis of the U.S. Department of Commerce for 1977 through 1989 which were previously unavailable. These new data include changes reflecting the rebasing of output deflators to 1987 prices (rather than 1982), the results of the 1989 Annual Survey of Manufactures, and other changes. However, these data do not yet incorporate other improvements already shown in the revised historical measures for business, nonfarm business, and nonfinancial corporations, published January 3. Raviaed third quarter 1991 maasur«s for nonfinancial corporations Revised productivity and cost measures for the third quarter for nonfinancial corporations were unchanged from those announced January 3, 1992. Table C. Preliminary and revised measures for nonfinancial corporations, third quarter 1991 ! Percent change from previous quarter (Seasonally adjusted annual rates) Item Preliminary Revised Productivity Output 1.7 1.7 2 .5 2 .5 Hours Hourly compensation 0.8 0.8 2.6 2.6 Real hourly Unit Implicit compen- labor Unit price sation costs profits deflator -0.4 -0.4 0:9 0.9 -4.2 -4.2 0.9 0.9 Next release dat* The next issue of Productivity and Coats is scheduled for release at 10:00 AM EST, Tuesday, March 10, 1992, and will contain preliminary annual measures for nonfinancial corporations, and revised fourth quarter and annual measures for business, nonfarm business, and manufacturing. NOTE: New and revised annual productivity measures for 1990 for 173 selected U.S. industries were released on December 30, 1991, in USDL 91-661, Productivity by Industry: 1990. Call (202) 523-9244 for further information. LABOR NEWS at your fingertips You can now get the summary text portion of this and other U.S. Department of Labor news releases quickly and easily through LABOR NEWS- a free electronic bulletin board providing a variety of labor-related information and available to anyone with a computer, a modem, and communications software. To register directly, load the following parameters into your computer: PHONE number: BAUD speed: PARITY: DATAbits: STOP bit: (202) 523-4784 300,1200, or 2400 none 8 1 After you have made a connection to LABOR NEWS, follow the registration prompts. Users must pay any toll for long-distance calls. For more information call (202) 523-7243, Monday through Friday, 9 a.m. to 4 p.m. EST. TECHNICAL NOTES Information in this release will be made available to sensory-impaired individuals upon request. Voice phone: 202-523-1221; TDD phone: 202-523-3926; TDD message referral phone number: 1-800-326-2577, 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. Jobs rather than persons are counted. Weekly hours are adjusted to the hours at work definitionusing 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, proprietors, unpaid family workers, and paid employees of private households. Output: Business sector output is equal to gross national product (GNP) in constant 1987 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 1990. Nonfarm business, which also excludes farming, was about 79 percent of GNP in 1990. Total manufacturing measures are computed by summing series prepared for the durable and nondurable goods sectors. Durables include the following 2-digit SIC industries: Primary metals; fabricated metal products; industrial machinery and equipment; electronic and other electric equipment; 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, paper and allied 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 1990. Nonfinancial corporate output is equal to GNP in constant 1987 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 1990. 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. Table 1. Business sector: Productivity, hourly .compensation, .unit labor cost, and prices, seasonally adjusted Heal Implicit Unit noncompensaUnit CompensaHours Output Year Output per labor pay- price tion per labor tion per of all and hour of ments (3) deflator (4) hour (2) cost persons hour :(1) quarter all persons ,•-" : 1990 1991 ' " -;:---<v -\ • • • : • ' . • - I II III IV 109.6 110.3 109.6 109.4 ANNUAL 109.7 I II III IV ANNUAL 109.9 . . ;";;. '' '••;:"'~' , '•' : 131.8 102.6 103.6 103.3 102.6 124.3 126.1 128.5 130.1 . 138.1 138.7 138.0 137.5 128.8 130.2 131.6 132.5 132.9 121.2 139.6 103.1 127.2 138.1 130.8 131,0 131.8 132. 3r 132.8 140,2 ! 141.4 142.1 142.3 134,0 135.0 135.6 135.9 132.0 141.5 130*2 130.7 131.3 131.3 119.1 119.0 119.2 118,7 143.2 144.8 145.8 146.9 102.4 103.0 103.0 102.9 130.9 119.1 145.1 102.8 ;'.:;,': •; - ' : 1991 1990 1991 ' "' 136.2 139.0 140.9 142.3 rate (5) Percent change from previous quarter at• .' Yannual ' • 1990 ' 121.6 121.4 121,2 120.5 133.2 133.9 132.9 109.4 109.9 110.2 110.6 indexes ;i982«100 135.1 L ' I II III IV 1.7 2.4 -2.2 -0.9 3.0 2.0 -3.0 -3.0 V 1.2 -0.5 -0.8 -2.2 6.6 8.4 5.7 4.1 -0.7 4.3 -1.1 "2.7 4.8 5.8 8.1 5.0 2.4 1.7 -2.2 -1.3 4.0 4.3 4.4 2.8 ANNUAL 0.2 0.4 0.2 5.4 0.0 5.2 1.4 3.8 I II III IV -0.1 1,9 1.1 1.6 -4;9 ^1.7 -4.7 '•'*:"• l.B:^ . 0.1 -1.5 2.6 4.6 2.8 2.9 -0.9 2.4 -0.2 -0.2 2.7 2.6 1.7 1.3. 7.9 3.6 2. Or 0.5 4.5 2.9 1.8 1.0 ANNUAL 0.2 -1.5 -1.7 3.9 -0.3 3.7 2.5 3 .3 2.8 1,6 1.0 0/2 3.7 3.7 4.1 3.9 I II III IV : -0.3 ; 0.7 - Percent change from corresponding quarter of previous year • ' • • '• • •'• 0.9 3.8 -0.4 0.5 -1.3 4.2 0.6 0.5 0.7 5.3 1.0 ' 4.9 -0.1 0.4 0.3 0.7 6.2 5.8 -0.6 6.2 -0.1 '. 0.2 -0.3 5.9 ANNUAL 0.2 0.4 0.2 5.4 0.0 5.2 1.4 3.8 I II III IV -0.2 -0.3 0.5 1.1 -2.3 -2.3 -1.2 -0.4 -2.1 -2.0 -1.6 -1.5 5.1 4.2 3.5 3.2 -0.2 -0.6 -0.4 0.3 5.4 4.6 3.0 2.1 1.5 1.9 3.0 3,5 4.0 3.6 3.0 .2.5 ANNUAL 0.2 -1.5 -1.7 3.9 -0.3 3.7 2.5 3.3 See footn otes following table 6. r*re vised February 5, 1992 Source: Bureau of Labor Statistics First quarter 1991 and annual 1991 movements in measures which incorporate hours of labor input should be interpreted with caut ion . See NOTE, page 4. Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor cost, and prices. Year and quarter Output per hour of all persons Output Hours of all persons Compensation per hour (1) Real compensation per hour (2) Unit labor cost Unit nonlabor payments (3) Implicit price deflator (4) Indexes 1982-100 1990 1991 I II III IV 108.1 108.6 107.9 107.9 133.5 134.1 133,1 132.0 123.5 123.4 123.3 122.4 134.9 137.6 139.5 141.0 101.6 102.6 102.3 101.7 124.9 126.7 129.2 130.7 138.4 139.0 138.4 138.7 129.2 130,6 132.2 133.3 ANNUAL 108.1 133.2 123.1 138.3 102.1 127.9 138.6 131.3 I II III IV 107.9 108.4 108.6 108.9 130.4 130.9 131.4 131.4 120.9 120.8 121.0 120.6 142.0 143.6 144.5 145.4 101.5 102.1 102.1 101.9 131.6 132.5 133.1 133.5 141.8 142.5 143.4 144.1 134.9 135.7 136.4 136.9 ANNUAL 108.4 131.0 120.3 143.8 101.9 132,7 142.9 136.0 Percent change from previous quarter at annual rate (5) 1990 1991 I II III IV 1.0 2.1 -2,5 -0.3 2.7 1.8 -3.0 -3.1 1.8 -0.3 -0.5 -2.8 6.0 8.1 5.6 4.4 -1.3 4.1 -1.2 -2.4 5.0 5.9 8.4 4,7 1.7 1,8 -1,7 1.0 3.8 4.5 4,8 3.4 ANNUAL -0.1 0.3 0.3 5.2 -0.2 5.3 1.5 3.9 I II III IV 0.1 1.9 0.9 1.1 -4.9 1.6 1.6 0.0 -4.9 -0.3 0.7 -1.1 2.7 4.6 2.7 2.4 -0.8 2.5 -0.3r -0.7 2.7 2.6 1.8r 1.3 9,0 2.1 2.5r 1.9 4.8 2.5 2.1 1.5 ANNUAL 0.2 -1,6 -1.8 4-0 -0.2 3.7 3.1 3.5 Percent change from corresponding quarter of previous year 1990 1991 I II III IV -0.7 0.4 0.1 0.0 0.4 1.0 0.2 -0.4 1.0 0.6 0.1 -0.5 3.5 5.2 6.1 6.0 -1.6 0.6 0.5 -0.2 4.2 4.9 6.0 6.0 2.9 1,6 0.8 0.7 3.8 3.7 4.2 4.1 ANNUAL -0.1 0.3 0.3 5.2 -0.2 5,3 1.5 3.9 I II III IV -0,2 -0^2 0.6 1.0 -2.3 -2.4 -1.2 -0.5 -2.2 -2.2 -1.9 -1.* 5.2 4.3 3.6 3.1 -0.1 -0.5 -0.3 0.2 5.4 4.6 3.0 2.1 2.4 2.5 3.6 3.8 4.4 3.9 3.2 2.7 ANNUAL 0.2 -1.6 -4.8 4.0 -0.2 3.7 3.1 3.5 See footnotes following table 6. r-revised February 5, 1992 Source: Bureau of Labor Statistics First quarter 1991 and annual 1991 movements in measures which incorporate hours of labor input should be interpreted with caution. See NOTE, page 4. 10 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 Compensation per hour(l) Real compensation per hour (2) Unit labor cost Indexes 1982-100 IV 124. Ir 125. Ir 126. 6r 126. 4r 134. Ir 135. 4r 136. 6r 133 . 9r 108. Ir 108. 3r 107. 7r 105. 9r 131. 3r 133. 6r 134.9r 137. Or 98. 9r 99. 6r 99. Or 98. 8r 105. 9r 106. 8r 106. 4r 108. 4r ANNUAL 125. 7r 135. Or 107. 4r 134. 3r 99. 2r 106.9r I II III IV 126. Or 127. Ir. 128. 4r 128.8 130. 3r 131.0r 133.2r 133.5 103. 4r 103. Or 103. 8r 103.6 138. 2r 139. 7r 140. 4r 141.8 98. 8r 99.3r 99. Ir 99.3 109. 7r 109. 9r 109. 4r 110.1 127.5 132.0 103.5 139.9 99.1 109.8 I II III 1990 ' 1991 ANNUAL Percent change from previous quarter at annual rate (5) 1990 1991 I II III IV 4.3 3.3r 5.6r -l.lr 1.9r 4. Or 3.4r -7.6r -2.4 0.6 -2.1 -6.6 4.9 7.2 4.0 6.5 -2.4 3.2 -2.7 -0.5 0.5r 3.8r -1.6 7.6r ANNUAL 2.5r 0.3r -2.2 5.3 -0.1 2.7 I II III IV -1.5r 3.7 4. Or 1.5 -10. 5r 2.2 7.1r 0.8 3.3 4.4 2.2 4.0 -0.2 2.2 -0.8r 0.8 4.9r 0.7 -1.7 2.5 1.4 -2.2 -9.1 -1.4 3.0 -0-7 -3.6 4.2 0.0 2.7 - • ANNUAL Percent change from corresponding quarter of previous year 1990 1991 I II III IV 1.2r 1.7r 3.8 3.0 -0.9r 0.2 1.8 0.3r -2.1 -1.6 -1.9 -2.6 3.9 5.7 5.6 5.6 -1.2 1.1 0.0 -0.6 2.7r 3.9r 1.7 2.5r ANNUAL 2.5r 0.3r -2.2 5.3 -0.1 2.7 I II III IV 1.5r 1.6r 1.2r 1.9 -2.9r -3.3r -2.5r -0.3 -4.4 -4.9 -3.6 -2.2 5.2 4.5 4.1 3.5 -0.1 -0.3 0.2 0.5 3.6 2.9 2.8 1.5 -2.2 -3.6 4.2 0.0 2.7 I-4 See footnotes following table 6. r-revised ANNUAL February 5, 1992 Source: Bureau of Labor Statistics First quarter 1991 and annual 1991 movements in measures which incorporate hours of labor input should be interpreted with caution. See NOTE, page 4. 11 Table 4, Durable manufacturing sector: Productivity, hourly compensation, and unit labor cost. seasonally adjusted Real Unit Hours CompensacompensaOutput Output per Year and labor of all tion per tion per <6J hour quarter cost persons hour<l) hour (2) of all persons Indexes 1982*100 1990 1991 I II III IV 132. 4r 134. 8r 137. 4r 136. 3r 143. 2r 145. 7r 147. 3r 142. 6r 108. Ir 108. Ir 107. 2r 104. 6r 129. 3r 131. 6r 132. 9r 135. 3r 97. 4r 98. Ir 97. 5r 97. 6r 97. 7r 97. 6r 96. 7r 99. 2r ANNUAL 135. 4r 144. 7r 106.9r 132. 4r 97. 8r 97. 8r I II III IV 135 .Tr 136. 8r 138, Ir 138.4 137. 6r 138. 3r 140. 2r 139.7 101. 4r 101. Ir 101. 5r 101.0 136. 4r 137. 9r 138. 9r 140.7 97. 5r 98. Ir 98. Ir 98.6 100. 5r 100. 9r 100. 6r 101.7 137.1 139.0 138.4 98.1 100.9 ANNUAL U01.3 Percent change from previous quarter at annual rate (5) 1990 I II III IV ANNUAL 1991 4.9 7.5 8.0 -3.1 3.7r 1.6 7.3 4.3 -12.1 0.2r -3.1 -0.1 -3.4 -9.2 3.9 7.2 4.2 7.2 -3.3 3.2 -2.5 0.2 -0.9 -0.2 -3.5 10.7 -3.4 5.5 0.1 1.7 1 II III IV -1.8 3.2 3.8 1.1 -13.3 2.2 5.5 -1.2 -11.7 -1.0 1.6 -2.3 3.4 4.6 2.8 5.4 -0.2 2.5 -0.2 2.2 5.3 1.4 -1.0 4.3 ANNUAL 1.3 -4.0 -5.2 4.5 0.3 3.2 Percent change from corresponding quart er of previous year 1990 1991 I II III IV 2.2r 2.8r 5.0 4.2 -1.4r 0.2r 2.0 0.0 -3.5 -2.6 -2.8 -4.0 4.1 6.0 5.7 5.6 -1.0 1.3 0.1 -0.6 l.Br 3.1r 0.7r 1.4 ANNUAL 3.7r 0.2r -3.4 5.5 0.1 1.7 I II III IV 2.5 1.4 0.5 1.5 -3.9 -5.1 -4.8 -2.0 -6.2 -6.4 -5.3 -3.5 5.5 4.8 4.5 4.0 0.2 0.0 0.6 1.1 2.9 3.3 4.0 2.5 ANNUAL 1.3 -4.0 -5.2 4.5 0.3 3.2 See footnotes following table 6. r-revised February 5, 1992 Source: Bureau of Labor Statistics First quarter 1991 and annual 1991 movements in measures which incorporate hours of labor input should be interpreted with caution. See NOTE, page 4. 12 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 6£ all persons Compensat ion per hour(l) Real compensat ion per hour (2) Unit labor cost Indexes 1982=100 1990 1991 I II III IV 114. Or 113. 3r 114. Or 114. 5r 123. 3r 123. Ir 123. 7r 123. 5r 108.1 108. 6r 108. 5r 107. 8r 134. 7r 137. 2r 138. 5r 140. 5r 101. 4r 102. 3r 101. 6r 101. 3r 118. 2r 121. Or 121. 5r 122. 6r ANNUAL 114. Or 123.4r 108. 2r 137. 7r 101. 7r 120. 8r I II III IV 114. 2r 115. 5r 116. 7r 117.3 121. 4r 122. Ir 124. 9r 126.0 106.3 105.7 107. Or 107.4 141. 8r 143. 2r 143. 7r 144.5 101. 4r 101. 9r 101. 5r 101.3 124. Ir 124. Or 12-3. 2 r 123.2 115.9 123.6 106.7 143.3 101.5 123.6 ANNUAL Percent change from previous quarter at annual rate (5) . 1990 I II III IV ANNUAL 1991 I II III IV ANNUAL 1990 .,1-0 .•,•:,... . -1.0 4.4 4.2r 2.1 2.3 -0.6 2.1 -0.9 -1.2 1.7 -0.2 -2.7 6.7 7.4 3.8 5.9 -0.7 3.3 -2.8 -1.0 3.0 9.8 1.5 3.9 0.6 -0.4 5.4 0.0 4.4r -5.4 -2.1 4.9 - • 1.5 4.0 3.9 l.Sr 2.2 0.4 1.8 -1.4r -0.9 5.1 -0.5 -2.6r 0.1 -0.2 2.3 -6.4 2.3 9.3r 3.6 0.2 -1.4 4.0 I-6 Percent change from corresponding quarter of previous year -0.2r 0.2r 2.1r 1.4 -O.lr 0.2 l.Sr 0.7 ANNUAL 1.0 I II III IV ANNUAL I II III IV 1991 3.5 -2.2 2.3 1.9 0,1 -0.1 -0.6 -0.6 4.0 5.5 5.6 5.9 -1.1 0.9 0.1 -0.3 4.2r 5.3r 3.4 4.5 0.6 • -0.4 5.4 0.0 4.4r 0.2 1.9 2.3 2.4 -1.5 -0.8 0.9 2.0 -1.7 -2.6 -1.4 -0.3 5.3 4.4 3.8 2.9 0.0 -0.4 -O.lr 0.0 5.0 2.5 1.4r 0.5 777 0.2 -1.4 4.0 See footnotes following table 6. r-revised 2.3 -0>2 February 5, 1992 Source: Bureau of Labor Statistics First quarter 1991 and annual 1991 movements in measures which incorporate hours of labor input should be interpreted with caution. See NOTE, page 4. 13 Table $. Nonfinancial corporations: Productivity, hourly compensation, unit labor cost, unit profits. and prices, seasonally adjusted Year and quarter Output per allemployee hour Output Real Employee Hourly hours compensa- hourly tion compen(1) sation<2) Unit labor cost Unit nonlabor cost (7) Total unit cost (8) Unit profits (9) Implicit price deflator (4) Indexes 1982-100 1990 1991 I II III IV 110.3 111.3 110.2 111.0 135.9 136.9 135.4 134.7 123.2 123.0 122.8 121.4 132.6 135.4 137.3 138.7 99.9 101.0 100.7 100.1 120.3 121.7 124.6 125.0 115.0 115.1 118.1 120.5 118.8 119.8 122.8 123.7 161.6 163.6 138.7 128.7 121.4 122.5 123.7 124.0 ANNUAL 110.7 135.7 122.6 136.1 100.5 122.9 117.1 121.3 148.2 122.9 I II III 111.3 112.1 112.6 133.3 134.0 134.8 119.7 119.5 119.7 139,7 141.2 142.1 99.9 100.4 100.3 125.4 125.9 126.2 123.7 123.4 124.1 124.9 125.2 125.6 130.9 138.2 136.7 125.3 126.0 126.3 Percent change from previous quarter at annual rate (5) 1990 1991 I II III IV 0.1 3.7 -3.9 2.8 0.7 3.2 -4.5 -1.9 0.6 -0.4 -0.6 -4.5 4.9 8.7 5.6 4.3 -2.3 4.6 -1.2 -2:5 4.8 4.8 9.9 1.5 2.0 0.3 11.1 8.1 4.0 3.6 10.2 3.2 -0,3 5.0 -48.3 -26.0 3.6 3.7 4.1 1.0 ANNUAL 0.0 0.1 0.1 5.2 -0.2 5.1 4.6 5.0 -14.1. 3.3 I II III 1.4 2.9 1.7 -4.3 2.1 2.5 -5.6 -0.8 0.8 2.7 4.4 2.6 -0.8 2.3 -0.4 1.3 1.5 0.9 11.2 -1.1 2.4 4.0 0.8 1.3 7.0 24.4 -4.2 4.2 2.2 0.9 Percent change from corresponding quarter 1990 1991 of previous year I II III IV -0.8 0.6 -0.2 0.6 0.2 1.1 -0.3 -0.7 1.0 0.4 -0.1 -1.3 3.5 5.4 6.1 5.8 -1.6 0.7 0.6 -0.4 4.3 4.7 6.4 5.2 5.8 3.5 4.1 5.3 4.7 4.4 5.8 5.2 -8.7 -8.4 -19.8 -20.4 3.4 3.2 3.5 3.1 ANNUAL 0.0 0.1 0.1 5.2 -0.2 5.1 4.6 5.0 -14.1 3.3 0.9 0.8 2.2 -1.9 -2.2 -0.4 -2.8 -2.9 -2.6 5.3 4.2 3.5 0.0 -0.6 -0.4 4.3 3.5 1.3 7.6 7.2 5.0 5.2 4.5 2.3 -19.0 -15.5 -1.4 3.2 2.8 2.0 I II lit. See footnotes following table 6. r-revised February 5, 1992 Source: Bureau of Labor Statistics First quarter 1991 movements in measures which incorporate hours of labor input should be interpreted with caution. See NOTE, page 4. 14 SOURCE: 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 1990. Footnotes, Tables 1-6 (1) Wages and salaries of employees plus employers1 contributions ftfr 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. 15 Appendix table 1. Manufacturing sector: Productivity/ hourly compensation. and unit labor cost Indexes 1982-100 Year Output per hour of all persons Output (6) Hours of all persons Compensation per hour(l) Real compensation per hour (2.) Unit labor cost 1977 1978 197? 98.0 97.4 96.2 106.3 110.2 111.0 108.6 113.1 115.3 62.6 67.7 74.2 99.8 100.2 98.7 64.0 69.5 77.1 1980 1981 1982 1983 1984 94.4 96.4 100.0 102.9 105.6 103.8 105.3 100.0 104.0 113.8 109.9 109.3 100.0 101.2 107.8 83.1 91.4 100.0 102.5 105.7 97.4 97.0 100.0 99.3 98.1 88.1 94.8 100.0 99.6 100.1 1985 1986 1987 1988 1989 108.0 112.6 117.2 122.0 122.5 115.5 118.8 124.6 133.4 134.6 107.0 105.4 106.2 109.4 109.8 111.0 115.4 118.0 122.6 127.5 99.5 101.7 100.2 100.0 99.2 102.8 102.5 100.7 100.5 104.0 1990 1991 125.7 127.5 135.0 132.0 107.4 103.5 134.3 139.9 99.2 99.1 106.9 109.8 February 5, 1992 Source: Bureau of Labor Statistics See' footnotes following table 6. Annual 1991 movements in measures which incorporate hours of labor input should be interpreted with caution. See NOTE, page 4. Appendix table 2. Durable manufacturing sector; Productivity, hourly compensation, and unit labor cost Indexes 1982-100 Real compensation per hour (2) Year Output per hour of all persons Output (6) Hours of all persons 1977 1978 1979 104.2 102.4 100.2 114.0 118.7 119.7 109.4 115.9 119.5 62.7 67.4 73.9 99.9 99.8 98,2 60.2 65.8 73.7 1980 1981 1982 1983 1984 98.3 98.7 100.0 102.4 107.7 110.4 110.0 100.0 103.1 118.0 112.4 111.5 100.0 100.6 109.6 83.1 91.5 100.0 101.9 104.6 97.3 97.1 100.0 98.7 97.2 84 .« 92.7 100.0 99.5 97.1 1985 1986 1987 1988 1989 109.8 115.1 121.5 128.3 130.6 120.3 122.8 129.4 141.9 144.4 109.5 106.7 106.5 110.6 110.6 109.9 114.9 116.8 120.4 125.5 98.5 101.2 99.2 98.2 97.7 100.0 99.8 96.2 93.8 96.1 1990 1991 135.4 137.1 144.7 139.0 106.9 101.3 132.4 138.4 97.8 98.1 97.8 100.9 See footnotes following table 6. Compensation per hour(l) Unit labor cost February 5, 1992 Source: Bureau of Labor Statistics Annual 1991 movements in measures which incorporate hours of labor input should be interpreted with caution. See NOTE, page 4. 16 Appendi* tab!* 3* nondurable manufacturing sector: Productivity, •nd unit labor cost Ind*M«« 1912-100 Y«*r Output per hour of all person* Hours of all persons 97.1 99.9 100.5 107.3 109.1 109.4 62.3 67.7 74.1 99.3 100.2 98.5 68.9 73.9 80.7 82,6 90.7 100.0 103.6 107.0 96.8 96.3 100.0 100.4 99.4 91.9 96.6 100.0 100.3 103.6 112.3 116.0 120.0 126.1 130.7 100.7 102.1 102.0 102.9 101.7 105.7 105.6 107.0 110.2 115.8 137.7 143.3 101.7 101.5 120.8 123.6 90.5 91.1 91.8 1910 1911 69.9 93*9 95.7 99. € 1M2 100*0 103. a 1914 103.3 100.0 105.2 108.6 106.5 106.1 100.0 101.9 105.2 1985 1916 1911 1911 1919 106.2 109.9 112,2 114.5 112.9 109.8 113.9 116. 8 123.2 122.7 103.4 103.7 105.9 107.6 108.7 1990 1991 114.0 115.9 123.4 123.6 See footnotes following table 6. Real compensation per hour (2) Output (€) 1977 1171 1979 19$3 hourly compensation, , • 108.2 106.7 Compensation per hour(l) , Unit labor cost February 5, 1992 Source: Bureau of Labor Statistics Annual 1991 movements in measures which incorporate hours of labor input should be interpreted with caution. See NOTE, page 4.
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