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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 Table A. Productivity and Costs: (Seasonally Adjusted) Sector PRODUCTIVITY AND COSTS Private Business, Nonfarm Business, and Manufacturing Sectors Fourth Quarter 1979 and Annual Averages for 1979 Unit labor cost Real hourly compensation Output Hour s Private business Nonfarm business Manufacturing Durable Nondurable -1.6 -0.4 -1.5 -1.6 -1.5 6.9 8.9 8.2 7.5 9.8 Private business Nonfarm business Manufacturing Durable Nondurable -0.9 -1.2 1.8 0.9 3.1 9.3 8.9 9.1 9.0 9.0 8.7 9.3 9.8 9.2 11.4 -5.6 -3.8 -4.5 -5.1 -3.0 1.8 1.7 -1.0 -1.8 0.2 3.5 2. 1 0.5 -0. 2 1.6 2.3 2.3 4.0 3.3 3.6 2. 2 3.2 0.6 1978 to 1979 Annual Average Productivity in the private business sector decreased 1.6 percent at a seasonally adjusted annual rate in the fourth quarter of 1979, the Bureau of Labor Statistics of the increase in hours of all persons—3.5 percent—than output, which rose only 1.8 percent. In the 10.4 10.2 7.2 8.0 5.7 -1.7 -2.1 -1.9 -2.0 -2.0 4.2 3.7 Second Quarter 1979 to Third Quarter 1979 REVISED The decline reflected a significantly larger This was the fourth consecutive quarter of declining productivity in this sector. Hourly compensation Third Quarter 1979 to Fourth Quarter 1979 PRELIMINARY USDL 80-49 For Release 10:00 AM EST Monday, January 28, 1980 U. S. Department of Labor reported today. Productivity u Percent Change at Annual Rate Nonfinaneial corporations -0. 2 8.6 8 .8 -3.8 0.6 0.9 third quarter, productivity dropped 1.3 percent. Fourth Quarter 1978 to Fourth Quarter 1979 PRELIMINARY For 1979 as a whole, productivity declined 0.9 percent, as output rose 2.3 percent and hours of all persons increased 3.3 percent. Annual declines in productivity have occurred only twice since 1947. In the nonfarm business sector, productivity decreased 0.4 percent in the fourth Private business Nonfarm business Manufacturing Durable Nondurable -2. 0 -2.3 0.6 -0. 5 2. 3 quarter, as output increased only 1.7 percent while hours of all persons increased 2.1 percent (annual rates). 11 .3 11 .5 8 .5 9 .4 7 .2 -3.2 -3.3 -3.2 -3.4 -2.7 0.3 0.1 0.7 -0.4 2.4 2.4 2.4 0.1 0.2 0.1 Third Quarter 1978 to Third Quarter 1979 REVISED In the third quarter, productivity declined 1.4 percent. For 1979 as a whole, productivity declined 1.2 percent in the nonfarm business 9.0 8.9 9.1 8.8 9.6 Nonfinancial corporations -1.0 8.9 10.1 -2.5 1.9 sector, reflecting a 2.3 percent increase in output and a 3.6 percent gain in hours. In manufacturing, productivity declined 1.5 percent in the fourth quarter, as output dropped 1.0 percent and hours increased 0.5 percent. During the third quarter, productivity increased 3.5 percent as output advanced 0.4 percent and hours declined 2.9 percent. Comparing 1979 with 1978, manufacturing productivity increased 1.8 percent, as output rose 4.0 percent while hours of all persons increased 2.2 percent. Fourth-quarter and annual measures are summarized in table A; details are given in tables 1-6. Revised third-quarter measures for the nonfinanclal corporate sector- were also released today (table 3). \J 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. -3- Prlvate business sector Compared with the fourth quarter of 1978, productivity declined 2.0 percent, hourly Productivity declined in each quarter of 1979; the 1.6 percent drop in the fourth quarter reflected a 1.8 percent gain in output and a 3.5 percent increase in hours. Both series grew more rapidly in the fourth quarter, but the acceleration of hours overbalanced output growth. compensation has increased 9.0 percent, and unit labor cost went up 11.3 percent. hourly compensation declined 3.2 percent while output edged up 0.3 percent and hours of all persons increased 2.4 percent. This is the longest productivity decline since the 1974-75 recession, when 7 quarterly decreases occurred together. In the earlier experience, productivity dropped a total of 3.3 percent during the first 4 quarters (the first quarter of 1973 through the Nonfarm business sector Productivity declined 0.4 percent in the nonfarm business sector, marking the fourth first quarter of 1974); during the 4 quarters of decline in 1979, the cumulative falloff quarter of decline in this series. was 2.0 perceat. biggest gain in output. Hourly compensation—which includes the hourly cost of wages and salaries, supplements, and employer contributions to employee benefit plans and Social Security—increased This was the smallest decline all year, reflecting the In the third quarter, productivity dropped 1,4 percent. The decline in the nonfarm business sector is smaller than the drop reported above for the private business sector, reflecting the productivity decline which occurred in farming tn 6.9 percent in the fourth quarter, compared with an 8.8 percent rise in the third quarter. the fourth quarter. This was the smallest increase in hourly compensation in 1979. 2.1 percent (seasonally adjusted annual rates). Real hourly compensation— which takes into account changes in the Consumer Price Index for All Urban Consumers Nonfarm output increased 1.7 percent while hours of all person? g^ew Hourly compensation increased 8.9 percent, somewhat greater than the 8.5 percent (CPI-U)—decreased 5.6 percent in the fourth quarter, marking the third consecutive quarter increase in the third quarter. of decline in this series. 10.1 percent gain during the third quarter. 1947. Real This was the largest decline in this series which begins in Real hourly compensation at the end of 1979 was lower than at any time since the first quarter of 1976. Unit labor cost increased 9.3 percent, compared with a real hourly compensation declined 3.8 percent in the fourth quarter, compared with a 3,9 percent drop during the third quarter. Unit labor cost, which is influenced by changes in output per hour and compensation After adjusting for the increase in the CPI^U, cutive quarters in this sector. Real hourly compensation has declined for 5 conse- The implicit price deflator for the nonfarm business per hour, increased 8.7 percent in the fourth quarter—also the smallest gain this year. sector showed an 8.4 percent increase in the fourth quarter, compared with a 9,0 percent During the third quarter, unit labor cost increased 10.3 percent (annual rate). increase one quarter before. The implicit price deflator, which reflects the impact of unit labor cost and unit Compared with the fourth quarter of 1978, productivity was down 2.3 percent, hourly nonlabor payments on sector prices, increased 7.8 percent in the fourth quarter, compared compensation advanced 8.9 percent, and unit labor cost was 11.5 percent higher, with an 8.3 percent gain in the third quarter. grew 0.1 percent over the four-quarter period, while hours increased 2.4 percent. Although unit labor cost grew more slowly in the fourth quarter, unit nonlabor payments grew faster. Output hourly compensation declined 3.3 percent, and the implicit price deflator increased 9.1 percent. Real -3- Real hourly compensation declined 1.7 percent as the rise in the CPI-U overbalanced Manufacturlng Productivity declined 1.5 percent in the fourth quarter in manufacturing, the second decline of the year. (In the first quarter, productivity dropped 2.4 percent). third quarter, productivity advanced 3.5 percent (annual rate). During the sation also declined 1.7 percent. Employment continued to grow in 1979, posting a 3.7 percent rise, compared with a 5.0 Hourly compensation increased 8.2 percent in the fourth quarter, marginally higher than the 8.1 percent rate of the third quarter. the gain in hourly compensation for the first time since 1974, when real hourly compen- percent increase in 1978. Unit labor cost, reflecting the continued strong advance of hourly com- pensation while productivity turned down, increased 9.8 percent in the fourth quarter, compared with a 4.4 percent increase during the third period. Real hourly compensation declined 4.5 percent, compared with a 4.3 percent drop during the third quarter. Compared with the fourth quarter of 1978, productivity increased 0.6 percent, hourly compensation increased 9.1 percent, and unit labor cost went up 8.5 percent. 0.7 percent and hours increased 0.1 percent. In the nonfarm business sector, productivity declined 1.2 percent during 1979, compared with a 0.5 percent increase a year earlier. the 3.1 percent drop recorded in 1974. persons 3.6 percent. over the 4-quarter period. Hourly compensation increased 8.9 percent, the largest increase since the 9.9 percent gain of 1975. Unit labor cost increased 10.2 percent, compared to an 8.0 percent gain a year earlier. This was the largest gain in unit labor cost since the 12.7 percent jump in 1974. Review of annual productivity and cost measures; 1979 Real hourly compensation declined 2.1 percent, the first drop since 1974. In manufacturing, productivity increased 1.8 percent for the year. Productivity declined in the private business sector by 0.9 percent in 1979, only the second time a drop occurred since 1947. Output Increased 2.3 percent and hours of all A year ago both gains were larger: 5.4 percent and 4.8 percent, respectively. Output rose Real hourly compensation declined 3.2 percent This was also the first decline since (In 1974, it declined 3.0 percent.) Output and edged up 0.6 percent. A year before, it The 1979 gain reflected a 4.0 percent increase in output and.a 2.2 percent increase In hours of all persons. Although hourly compensation gains were similar hours growth slowed in 1979, but the reduction in output gains—from 5.2 percent in 1978 to to those of the more comprehensive business sectors, unit labor cost grew more slowly In 2.3 percent in 1979—was more dramatic than the decline in hours—from 4.7 percent to manufacturing, owing to the productivity gains In this sector. 3.3 percent. creased 9.1 percent, and unit labor cost went up 7.2 percent. Hourly compensation gains increased over last year, posting a 9.3 percent rise in 1979. This was the largest annual gain since 1975. 8.5 percent. A year earlier, the increase was The combination of faster gains in hourly compensation and a decline in productivity resulted In a 10.4 percent increase in unit labor cost, the first double-digit increase In this measure since the 12.5 percent rise of 1974. Hourly compensation inAfter allowing for the Increase In the CPI-U, real hourly compensation declined 1.9 percent, the first drop since 1974. -7Nonflnancial corporations The Bureau of Labor Statistics also reported revised third-quarter measures of productivity and costs for the nonfinancial corporate sector. Including all corporations doing business in the United States with the exception of banks, stock and commodity brokers, and finance and credit agencies, this sector showed a 0.2 productivity decline in the third quarter of 1979, as output increased 0.6 percent and hours of all employees gained 0,9 percent. Previously, these changes had been reported as 0.7 percent, 1.6 per- cent and 0.9 percent, respectively, based on preliminary data. See table 3. TABLE I. PRIVATE BUSINESS SECTOR, ALL PERSONS: PRODUCTIVITY, HOURLY COMPENSATION, UNIT LABOR COST, AND PRICES, SEASONALLY ADJUSTED YEAR AND QUARTEK OUTPUT PER HOUR OF ALL PERSONS OUTPUT HOURS OF ALL PERSONS COMPENSATION PER HOUR(l) REAL COMPENSATION PER HOUR(2) UNIT LABOR COST UNIT NONLABOR PAYMENTS(3) IMPLICIT PRICE DEFLATOR INDEXES 1967*100 1978 I II III IV 118.4 119,0 119.7 119.8 136.9 140.3 141.8 144.0 115.6 117.9 118.4 120.2 224.2 228.5 233.6 238.4 118.7 118.1 lltt.2 118.0 189.4 192.1 195.2 199.0 164.8 173.9 177.0 181.3 180.9 185.8 188.9 192.9 ANNUAL 119.2 140.7 118.1 231.2 118.3 194.0 174.3 187.2 ii in IV 118.9 118.2 117. 8R 117. 3P 144^4 143.4 143.8R 144.4P 121.5 121.3 122.0 123.IP 244.8 250.3 255.6 260.OP 118.0 116.9 115.8 114.2P 205.9 211.7 217.OR 221.5P 180.6 183.7 185.6R 188.2P 197.2 202.0 206.1k 210.OP ANNUAL 118.IP 144.OP 122.OP 252.8P 116.3P 214.IP 184.4P 203.8P I 1979 PERCENT CHANGE FROM PREVIOUS QUARTER AT ANNUAL RATEC5) 1^78 1979 I II III IV -1.5 2.0 2.4 0.3 2.4 10.5 4.2 6.4 3.9 8.4 1.7 6.1 10.9 7.9 9.2 8.5 2.9 -2.1 0.3 •0.7 12.6 5.8 6.6 8.1 -8.6 24.0 7.4 9.9 5.3 11.2 6.9 8.7 ANNUAL 0.5 5.2 4.7 8.5 0.8 8^0 5.3 7.1 I II III IV -3.0 4.4 -0.7 2.4R 3.5P 11.1 -1.3K -1.6P 1.2 -2.9 1.1R 1.8P 9.3 8.8 6.9P 0.1 -3.8 -3.6 -5.6P 14.6 11.8 10.3R 8.7P -1.0 6.5 4.1R 5.9P 9.3 10.1 8.3R 7.8P ANNUAL -0.9P 2.3P 3.3P 9.3P -1.7P 10.4P 5.8P 8.9P PERCENT CHANGE FROM CORRESPONDING QUARTER OF PREVIOUS YEAR(6) 1978 1979 I 11 III IV -0.1 0.9 0.2 0.8 4.4 5.7 4.8 5.8 4.5 4.7 4.6 5.0 8.0 8.4 fl.5 9.1 1.3 1.2 0.4 0.1 8.1 7.4 8.3 8.3 2.1 5.6 5.4 7.5 6.1 6.8 7.4 8.0 ANNUAL 0.5 5.2 4.7 8.5 0.8 8.0 5.3 7.1 I 11 III IV 0.4 -0.6 -1.6R -2.OP 5.5 2.2 1.4R 0.3p 5.1 2.8 3.0 2.4P 9.2 9.5 9.4 9.Op -0.6 -1.0 -2.0 -3.2P 8.7 10.2 11. 2R 1U3P 9.7 5.6 4.8 3.9P 9.0 8.7 9.1R 8.9p ANNUAL -0.9P 2.3P 3.3P 9.3P -1.7P 10.4P 5.6P 8.9P bcE FOOTNOTES FOLLOWING R=REVISED PsPRELIMINAKY TABLE JANUARY 28, 1980 SOURCE: BUREAU OF LABOR STATISTICS TABLE 2. IMONFARM BUSINESS SfcCTOR, ALL PERSONS: PRODUCTIVITY, HOURLY COMPENSATION, UNIT LABOR COST, AND PRICES, SEASONALLY ADJUSTED YEAR AND QUARTER OUTPUT PER HOUR OF ALL PERSONS OUTPUT HOURS OF ALL PERSONS COMPENSATION PER HOUR(l) REAL COMPENSATION PER H0URC2) UNIT LABOR COST UNIT NQNLA80R PAYMENTS^) IMPLICIT PRICE DEFLATOR INDEXES 1967=100 1978 1979 I 11 III IV 116.0 116.5 117.3 117.6 137.3 141.1 142.7 145.0 118.4 121.1 121.6 123.4 220.6 224.6 229.4 234.3 116.8 116.1 116.1 116.0 190.2 192.7 195.6 199.3 161.1 169.2 173.0 176.1 180.2 184.7 187.8 191.4 •AiMNUAL 116.8 141.5 121.1 227.3 116.3 194.5 169.9 186.1 I II III IV 116.6 115.4 115.OR 114.9P 145.5 144.2 144.6R 145.2P 124.8 124.9 125.7 126.4P 240.2 244.8 249.9R 255.2P 115.8 114.3 113.2 112.IP 206.0 212.1 217.3R 222.2P 174.3 177.6 180.5R 183.3P 195.1 200.3 204.7R 208.?P ANNUAL 115.5P 144.8P 125.4P 247.6P 113.9P 214.4P 178.8P 202.2P PERCENT CHANGE FROM PREVIOUS QUARTER AT ANNUAL RAT£(5) 1978 1979 I II III IV -0.9 1.9 2.7 0,8 2.7 11.5 4.5 6.A 3.6 9.4 1.8 5.9 11.4 7.5 8.8 8.8 3.3 -2.5 0.0 -0.4 12.4 5.4 6.0 8.0 -11.2 21.5 9.4 7.3 4.4 10.2 7.0 7.8 ANNUAL 0.5 5.4 4.8 8.6 0.9 8.0 3.7 6.6 I II III IV -3.2 -4.1 -1.4R -0.4P 1.2 -3.6 1.2R 1.7P 4.6 0.5 2.6 2.IP 10.4 7.9 8.5 8.9P -0.6 -5.0 -3.9 -3.8P 14.0 12.5 10.1R 9.3P -4.0 7.8 6.6R 6.4P 8.1 11.0 9.OR 8.4P ANNUAL -1.2P 2.3P 3.6P 8.9P -2.IP 10.2P 5.2P 8.7P PERCENT CHANGE FROM CORRESPONDING QUARTER OF PREVIOUS YEAR(6) 1978 1979 I II III IV -0.3 0.6 0.5 1*1 4.2 5.7 5.2 6.3 4.6 5.1 4.7 5.2 B.I a.4 A.7 9.1 1.4 1.2 0.6 0.1 8.4 7.7 8.1 7.9 1.3 3.7 3.5 6.1 6.1 6.4 6.6 7.3 AiMNUAL 0.5 5.4 4.8 8.6 0.9 8.0 3.7 6.6 I II III TV 0.5 -1.0 -2.OR -2.3P 5.9 1.3R O.lp 5.4 3.2 3.4 2.4P fl.9 9.0 8.9 8.9P -0.8 -1.5 -2.5 -3.3P 8.3 10.1 11.IK 11.5P 8.2 5.0 4.3 4.IP 8.3 8.5 9.OR 9.IP ANNUAL -1..2P 2.3P 3.6P 8.9P -2.IP 10.2P 5.2P 8.7P S E FOOTNOTES FOLLOWING TABLE 6. R=REVISEO P=PRELIMINANY JANUARY 28, 1980 SOURCE: BUREAU OF LABOR STATISTICS TABLE 3. NONFINANCIAL CORPORATIONS: PRODUCTIVITY, HOURLY COMPENSATION UNIT LABOR COST, UNIT PROFITS, AND PRICES, SEASONALLY ADJUSTED YEAR AND QUARTER OUTPUT P£R ALLEMPLOYEE EMPLOYEE HOURLY REAL HOURS COMPENSA- HOURLY TION COMPEN(1) SATION(2) OUTPUT HOUR UNIT LABOR COST UNIT NONLABOR C0STT8) TOTAL UNIT COST (9) UNIT PROFITS (10) IMPLICIT PRICE DEFLATOR INDEXES 1967=100 1978 1979 I II III IV 116.7 117.8 118.4 118.8 144.7 149.7 151.4 154.2 124.1 127.1 127.8 129.8 218.5 222.3 226.9 231.3 115.7 114.9 114.8 114.5 187.3 188.7 191.5 194.8 201.5 200.8 201.6 203.1 190.8 191.6 194.0 196.8 107.1 129.2 132.7 138.7 178.3 182.3 184.9 188.2 ANNUAL 117.9 150.0 127.2 224.8 115.0 190.6 201.8 193.3 127.2 183.5 118.1 117.3 117.2R 155.1 154.1 154.3R 131.3 131.4 131.7 237.4 242.1 247.1 114.5 113.1 112.OR 20lf0 206.4 210.8R 206.5 213.2 220.5R 202.3 208.0 213.2R 130.3 129.2 127.5R 191.6 196.3 200.4R I II III PERCENT CHANGE FROM PREVIOUS QUARTER AT ANNUAL 1978 1979 RATE(5) I II III IV -0.1 4.1 2.0 1.1 3.6 14.5 4.6 7.6 3.8 10.0 2.5 6.4 U.3 7.2 8.4 8.1 3.2 -2.7 -0.4 -1.0 11.4 2.9 6.2 6.9 5.6 -1.3 1.7 2.9 9.9 1.8 5.1 5.9 -40.8 111.3 11. « 19.5 3.6 9.3 5*7 7.3 ANNUAL 1.0 6.2 5.2 8.3 0.6 7.3 3.9 6.4 3.7 6.1 -2.1 -2.8 -0.2R 2.5 -2.6 0.6R 4.6 0.3 0.9 11.0 8.0 8.6R 0.0 -4.9 -3.8R 13.4 11.2 8.8R 6.8 13.5 14.6R 11.7 11.8 10. 2R I II III -22.1 -3.4 -5.3R 7.6 10.2 8.6R PERCENT CHANGE FROM CORRESPONDING QUARTER OF PREVIOUS Y£AR(6) 1978 1979 I TI III IV -0.1 1.2 0.8 1 .8 4.6 6.7 6.1 7.5 a.7 5.4 5.2 5.6 7.9 8.1 8.3 8.7 1.2 0.9 0.2 -0.3 8.0 6.8 7.4 6.8 5.5 4.3 3.5 2.2 7.3 6.2 6.4 5.6 -6.1 4.7 1.4 13.6 6.0 6.0 5.8 6.4 JAL 1.0 6.2 5.2 8.3 0.6 7.3 3.9 6.4 3.7 6.1 I II III 1.3 -0.5 -l.OR 7.2 2.9 1.9R 5.8 3.4 3.0 8.7 8.9 8.9 -1.0 -1.6 -2.5 7.3 9.4 10.1R 2.5 *».2 9.4R 6.1 8.6 9.9R 21.7 0.0 -3.9R SEE FOOTNOTES FOLLOWING TABLE 6. R=REVISED P=PRELIMINARY 7.5 7.7 8.4R JANUARY 28, 1980 SOURCE: BUREAU OF LABOR STATISTICS TABLK 4. MANUFACTURING SECTOR: PRODUCTIVITY, HOURLY COMPENSATION, UNIT LAdOR COST, SEASONALLY ADJUSTED YEAR AND QUARTER OUTPUT PEN HOUR OF ALL PERSONS OUTPUT (7) HOURS OF ALL PERSONS COMPENSATION PER HOUR(l) REAL COMPENSATION PER H0UK(2) UNIT LABOR COST INDEXES 1967=100 1978 I II III IV 125.7 127.2 129.2 129.8 130.1 Ii3.4 135.9 138.5 103.4 104.8 105.2 106.7 223.2 226.6 231.4 236.5 118.1 117.1 117.0 117.1 177.5 178.1 179.1 182.2 UAL 128.0 134.5 105.1 229.5 117.5 179.4 I II III IV 129.0 130.0 131.IR 130.6P 140.1 139.7 139.9R 139.5P 108.5 107.5 106.7 106.9P 242.4 24ft.2 253.OR 258.OP 116.9 115.9 114.6 113.3P 187.9 190.9 193.OR 197.6P ANNUAL 130.2P 139.8P 107.4P 250.5P 115.2P 192.4P 1979 PERCENT CHANGE FROM PREVIOUS QUARTER AT ANNUAL 1978 4.5 5.5 1,3 5.9 10.7 6.3 8.7 9.3 2.7 -3.5 -0.1 0.0 16.2 1.4 4.8 4.3 8.3 0.6 7.7 -2.4 2.9 3.5R -1.5P 4.6 -0.9 0.4R -l.OP 7.1 -3.7 -2.9 0.5P 10.3 9.8 8^2P -0.6 -3.4 -4.3R -4.5P 13.0 6.7 4.4R 9.8P 1.8P 4.OP 2.BP 9.IP -1.9P 7.2P I II III IV -6.4 4.8 6.3 2.0 -2.2 10.6 7.6 ANNUAL 0.6 I II III IV ANNUAL 1979 RATE(5) 7'!i PERCENT CHANGE FROM CORRESPONDING QUARTER OF PREVIOUS YEAR(6) I II III IV 0.2 -0.1 0.6 1.6 4.7 4.1 4.6 5.9 4.5 ANNUAL 0.6 I II III IV ANNUAL 1978 1979 4^0 4.3 8.1 8.0 8.1 8.7 1.4 0.9 0.0 -0.3 7.9 8.1 7.4 7.1 4.8 4.3 8.3 0.6 7.7 2.6 2.2 1.5R 0.6P 7.7 4.8 3.OR 0.7P 4.9 2.6 1.5 0.1P 8.6 9.5 9.4 9.IP -l.l -i.o -2.1 -3.2P 5.9 7.2 7.8 8.5P 1.8P 4.OP 2.2P 9.IP -1.9P 7.2P SEE FOOTNOTES FOLLOWING TABLE 6. R=R£VISED JANUARY 28, 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 H0UR(2) UNIT LABOR COST INDEXES 1967=100 1978 I II III IV 118.9 120.9 122.5 122.8 124.4 128.3 131.3 134.5 104.6 106.1 107.2 109,5 224.5 227.9 232.5 237.9 118.9 117.8 117.6 117.7 188.8 188.5 189.9 193.7 UAL 121.3 129.6 106.9 230.8 118.1 190.4 I II III IV 121.8 122.7 122.7R 122.2P 136.2 135.4 134.6 134.OP 111.8 110.3 109.7 109.7P 243.8 249.5 254.3 258.9P 117,5 116.5 115.2 113.7P 200.1 203.3 207.3R 211.9P ANNUAL 122.4P 135.OP H0.3P 251.7P 115.8P 20b.6P 1979 PERCENT CHANGE FROM PREVIOUS QUARTER AT ANNUAL 1978 1 II HI IV 8.7 6.9 5.1 ANNUAL 1979 I II HI IV ANNUAL RATE(5) L2 -3.6 13.3 9.6 10.0 5.7 5.9 4.3 8.7 9.7 6.1 8.3 9.6 1.7 -3.7 -0.4 0.4 20.2 -0.8 3.1 8.3 0.0 5.8 5.B 8.0 0.3 7.9 5.3 -2.5 -2.3 -1.8P 8.8 -5.2 -0.2P 10.3 9.7 8.0 7.5P -0.6 -3.5 -4.4 -5.IP 13.9 6.6 8.OR 9.2P 4.2P 3.2P 9.OP -2.OP 6.OP i^ 2.9 0.1R 1 .6P 0.9P PERCENT CHANGE F R O M CORRESPONDING QUARTER OF P K E V I O U S 1978 I II III IV -o.s -0.6 ANNUAL 1.2 0.5 -0.3 -0.5 8.3 8.3 7.5 7.4 0.3 7.9 ft.6 9.5 9.4 ft.sp -1.1 -1.1 -2.1 -3.4P 6.0 7.9 9.2 9.4P 9.OP -2.OP 8.OP 0.2 0.9 5.6 5.0 5.6 7.1 6.1 5.6 5.4 6.1 7.8 7.7 7.7 ft.4 0.0 5.8 5.8 8.0 1 II III IV 2.4 1.5 0.2R -O.bP 9.5 5.5 2.5 -0.4P 6.9 4.0 2.3 0.2P ANNUAL 0.9P 4.2P 3.2P 1979 SEE FUOTMUThS F U L L O V Y I N G R=REVISEO P=PkfcLIMTNAKY YEAR(6) TABLE JANUARY 2 8 , 1980 S O U R C E : BUREAU OF LAbOR STATISTICS TABLE 6. NONDURABLE MANUFACTURING SECTOR: PRODUCTIVITY, HOURLY COMPENSATION* UNIT LABOR COST, SEASONALLY ADJUSTED(12) YEAR AND QUARTER OUTPUf PER HOUR OF ALL PERSONS OUTPUT (7) HOURS OF ALL PERSONS COMPtNSATION PER HOUR (I) REAL COMPENSATION PER HOUR(2) UNIT LABOR COST INDEXES 1967*100 1978 1 II IV 1979 I II III IV 136.9 137.5 HO.3 141.4 139.3 1*1.6 143.2 145.1 146.3 146.9 148.5R 148.6P 142.1 145.2R 144.6P feP ANNUAL 101.7 103.0 102.1 102.6 220.1 223.6 228.1 232.4 116.5 115.5 115.4 115.0 160.7 162.6 162.6 164,3 102.« 226.1 115.7 162.7 103.7 103.4 102.3 102.7P 238.0 244.1 248.9 254.8P ,8 114 ,0 112 ,7R 111.9P 168.7 171.8 171.4R 176.IP 103.Of 246.bP 113.4P 172.OP CHANGE FROM PREVIOUS QUARTER AT ANNUAL RATE(5) 1978 I II ill IV 2.7 1.7 6.2 3.4 -0.1 6.8 4.8 5.3 ANNUAL 1.5 I II III IV 1979 ANNUAL 15.4 4.7 0.1 4.2 4.9 -3.2 1.8 12.3 6.5 8.3 7.8 -3.3 -0.4 -1.3 3.4 U9 £.4 0.7 <u* 3.* 2.7 1.5 9. OR 1.5P 4.6R 0.2P 4.4 -1.2 -4.1 1.6P 10.0 10.6 8.1 9.8P -0.9 -2.6 -4.3 -3.OP -0.9R 11.4P 3. IP 3.7P -2.OP 5.7P 2.7 O.*P 9vOP «.l fc.S 11.0 7.7 PERCENT CHANGE FROM CORRESPONDING QUARTER OF PREVIOUS YEAfU6) 1978 I II III IV 1.3 0.6 1.3 2.6 3.4 2.9 3.2 4.1 2.1 2.2 1.9 1.5 8.1 8.2 8.3 8.7 1.4 1.0 0.3 -0.3 ANNUAL 1.5 3.4 1.9 8.4 0.7 I II III IV 3.1 3.3 3.5R 2.3P 5.1 3.7 3.7R 2.4P 1.9 0.4 0.1P 8.1 9.2 9.1 9.6P -1.5 -1.3 -2.3 -2.7P 4.9 5.7 5.4R 7.2P ANNUAL 3.IP 3.7P 0.6P 9.OP •2.OP 5.7P 1S79 SEE FOOTNOTES FULLOwlNG TABLE 6, R=R£VISED P=PRELIMINAKY 0.2 6.7 7.5 7.0 6.0 6.8 JANUARY 2 8 , 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 : 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 U 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 OATA FROM T H E BUREAU OF LABOR S T A T I S T I C S , U . S . DEPARTMENT OF LABOR, AND THE BUREAU OF E C U N O M L C A N A L Y S I S . (1) W A G E S ANU 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 S O C U L INSURANCE AND PRIVATE B E N E F I T P L A N S . E X C E P T F O R N O N F I M 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 F O R C H A N G E S IN THE C O N S U M E R PRICE INDEX FOR ALL URBAN (3) NONLABOR PAYMENTS INCLUDE PROFITS, DEPRECIATION* (4) CURRENT DOLLAR G R O S S P R O D U C T D I V I D E D BY CONSTANT DOLLAR G R O S S P R O D U C T . (5) P E R C E N T CHANGE C O M P O U N D E D AT ANNUAL RATE FROM THE ORIGINAL DATA RATHER THAN INDEX (6) CURRENT QUARTER D I V I D E D BY C O M P A R A B L E Q U A R T E R A YEAR A G O . (7) QUARTERLY 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 U . S . DEPARTMENT OF C O M M E R C E . (6) U N I T NOMLABOK C O S T I N C L U D E D E P R E C I A T I O N , (9) TOTAL UNIT COST IS T H E SUM OF LABOR AND N O N L A B O R CONSUMERS. I N T E R E S T , RENTAL INCOME, AND INDIRECT T A X E S . NUMBERS. (GROSS P R O D U C T O K I G I N A T I N G ) FROM THE BUREAU OF E C O N O M I C I N T E R E S T , AND INDIRECT ANALYSIS, TAXES. COSTS. (10) UNIT P R O F I T S I N C L U D E C O R P O R A T E P R O F I T AND INVENTORY VALUATION ADJUSTMENT. (11) THE D U R A B L E SECTOR I N C L U D E S T H E F O L L O W I N G 2-DLGLT S I C I N D U S T R I E S : PRIMARY M E T A L ; F A B R I C A T E D 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 ; 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 . (13) THE N O N D U R A B L E SECTOK I N C L U D E S THE F O L L O W I N G 2 - D I G I T S I C 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 ; L E A T H E R ANO 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 CHEMICAL P R O D U C T S ; PETPOLTUM P R O D U C T S ; R U B B E R AND P L A S T I C 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 . (13) S C H E D U L I N G OF THE K E L E A S T OF T H E 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 THESt WILL Bfe PUBLISHED TOGETHER AND COSTS, APPROXIMATELY 30 DAYS NFCW 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 (CHI-U) P R E C L U D E S THE USFC OF REAL HOURLY 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 1 - 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 WITH REVISED OUTPUT A N D LABOR INPUT MfcASUKES WITH THE NEXT rtEbULAR EDITION OF PRODUCTIVITY AFTER THE PRELIMINARY MEASURES. THE PRODUCTIVITY AND ASSOCIATED COST MEASURES IN THIS PRESS RELEASE DESCRIBE ThF RELATIONSHIP BETWEEN OUTPUT IN REAL TERMS AND THE LABOR TIME INVOLVED IN ITS PRODUCTION. ThFY SHOW THE CHANGES FROM PERIOD TO PERIOD IN THE AMOUNT OF LABO^ TIME REQUIRED To PRODUCE A UNIT OF OUTPUT. ALTHOUGH THESE MEASURES RELATE OUTPUT TO HOURS OF AIL PERSONS tNGAGEU IN A SfcCTOrt, THEY DO NUT MEASURfc THE SPECIFIC CONTRIBUTIONS OF LABOR, CAPITAL OR ANY OTHER FACTOR UF PRODUCTION. RATHER, THEY REFLECT THE JOINT CHANGES IfM TECHNOLOGY; CAplTA L INVESTMENT; L ^ V E L OF OUTPUT; UTILIZATION OF CAPACITY; ENERGY ANU M A T E K I A L S ; 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) Output per hour of all persons IV -1.6 15 10 5 0 -5 -9 Compensation per hour of all persons IV 6.9 15 10 5 0 Unit labor cost 20 15 10 5 0 -4 35 30 25 20 15 10 5 0 -5 -10 -14 20 15 10 5 0 1973 1974 1975 1976 1977 1978 1979 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 IV -0.4 15 10 5 0 -5 -9 Compensation per hour of all persons IV 8.9 15 10 5 0 Unit labor cost IV 9.3 25 20 15 10 5 0 -4 30 25 20 15 10 5 0 -5 -10 -14 20 15 10 5 0 . , I 1973 • , 1974 • I • 1975 1976 1977 1978 1979 Chart 3. Productivity, hourly compensation, unit costs and prices in nonflnanclal corporations (percent change from same quarter a year ago) Output per hour of all employees Ill -1.0 15 10 5 0 -4 Compensation per hour of all employees III 8.9 15 10 5 A 1 4. I 1 0 4 Unit labor cost 15 10 5 0 Unit nonlabor payments III 5.1 25 20 15 10 5 0 Implicit price deflator III 8.4 15 10 5 0 1 1972 1 1973 1 1 1 1974 1975 1976 1977 1978 1979 Chart 4. Unit costs, unit profits, and prices In nonfinancial corporations (percent change from some quarter a year ago) Unit labor cost in 10,1 20 10 0 Unit non labor cost 30 20 10 0 -9 20 15 10 5 0 80 70 60 50 40 30 20 10 0 -10 -20 -29 1972 1973 1974 1975 1976 1977 1978 1979
@FedFRASER