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News
Bureau of Labor Statistics
-2-
United States
Department
of Labor
Washington, D.C. 20212
Table A. Productivity and costs: percent change at annual rate
(Seasonally adjusted)
Sector
Lawrence Fulco
Kathryn Hoyle
(202) 523-9261
(202) 523-1913
Productivity
USDL 80-675
For Release 10:00 AM EST
Monday, October 27, 1980
Hourly
compensation
Unit
labor
cost
Real
hourly
compensation
Output
Hours
PRELIMINARY
Second quarter 1980 to third quarter 1980
Private business
PRODUCTIVITY AND COSTS
1.4
8.3
6.8
1.0
0.3
-1.1
2.6
8.4
5.7
1.1
1.1
-1.4
-2.7
12.0
15.1
4.5
-10.1
-8.3
-3.8
11.9
16.3
4.4
-13.1
-9.7
-1.3
12.6
14.1
5.1
-7.3
-6.1
-11.5
-9.8
Nonfarm business
Private Business, Nonfarm Business, and Manufacturing Sectors
Third Quarter 1980
Manufacturing
Productivity in the private business sector increased 1.4 percent at a
seasonally adjusted annual rate in the third quarter of 1980, according to
Durable
Nondurable
preliminary figures released today by the Bureau of Labor Statistics of the
U.S. Department of Labor.
REVISED
First quarter 1980 to second quarter 1980
The increase followed a 2.7 percent decline in the
second quarter and a 0.3 percent decline in the first.
The third-quarter
Nonfinancial
corporations
-1.9
11.1
13.2
-2.3
increase reflected a 0.3 percent rise in output and a 1.1 percent drop in hours
of all persons.
PRELIMINARY
Third quarter 1979 to third quarter 1980
This was the first productivity increase since the 0.3 percent
gain in the fourth quarter of 1978.
Private business
^ -0.5
In the nonfarm business sector, productivity increased 2.6 percent in the
third quarter, following a 3.7 percent decline in the second quarter.
Output
10.4
-2.6
-2.4
-1.9
Nonfarm business
-0.4
9.8
10.3
-2.6
-2.3
-1.9
Manufacturing
-2.9
11.6
14.9
-1.1
-9.3
-6.6
Durable
-3.2
12.2
15.8
-0.6
-11.5
-8.6
Nondurable
-2.8
11.2
14.4
-1.4
-6.1
-3.4
-2.2
-1.5
rose 1.1 percent and hours declined 1.4 percent (annual rates) in the third
quarter.
9.8
This was the first productivity increase in this sector since the 0.8
percent gain in the fourth quarter of 1979.
REVISED
Second quarter 1979 to second quarter 1980
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 pf the work force.
Nonfinancial
corporations
-0.7
9.7
10.5
-4.1
-4-
-3In manufacturing, productivity decreased 2.7 percent in the third quarter,
Real hourly compensation—hourly compensation adjusted for changes 1n the
as output dropped 10.7 percent while hours of all persons declined at an 8.3
Consumer Price Index for All Urban Consumers (CPI-U)—increased 1.0 percent 1n
percent annual r a t e .
the third quarter.
During the second quarter, productivity had declined 4.7
percent, as output declined 21.8 percent and hours of all persons dropped at an
18.0 percent annual rate.
In the second quarter, a 1.5 percent decline occurred.
third quarter Increase ended a 9-quarter decline in this series.
The implicit price deflator, which shows the effects of changes in unit
The third quarter decline marked the fourth conse-
labor cost and unit nonlabor payments, Increased 10.0 percent in the third
cutive decline 1n manufacturing productivity.
quarter, compared with an 11.9 percent Increase during the second quarter.
A summary of third-quarter changes 1n productivity and costs appears 1n
Compared with the third quarter of 1979, productivity declined 0.5 percent,
table A; details are found in tables 1-6.
as output dropped 2.4 percent and hours of a l l persons f e l l 1.9 percent.
Hourly
compensation rose 9.8 percent, and unit labor cost Increased 10.4 percent over
Private business sector
the 4-quarter period.
Productivity growth in the third quarter ended a six-quarter period of
steadily dropping output \>er hour of all persons.
The
Although output edged up 0.3
Implicit price deflator rose 9.6 percent.
Nonfarm business sector
percent—in contrast to the 12.0 percent f a l l o f f during the second quarter of
1980—hours declined 1.1 percent, marking the second consecutive f a l l 1n hours.
The second-quarter decrease 1n hours was much larger, however (9.6 percent).
Real hourly compensation dropped 2.6 percent, and the
In
the second quarter, productivity, output, and hours all declined (table 1 ) .
Hourly compensation, which includes wages and salaries as well as fringe
Productivity Increased more 1n the nonfarm business sector than 1n the
private business sector as a whole since i t was not affected by the t h i r d quarter decline 1n the farm sector which was Included 1n the more comprehensive
measure.
The 2.6-percent third-quarter Increase—the largest 1n 3
benefits and employer contributions to employee benefit plans, increased at an
years—reflected a 1.1 percent Increase 1n output coupled with a 1.4 percent
8.3-percent annual rate in the third period, the smallest quarterly gain a l l
decline in hours of all persons.
year.
declined at a 3.7 percent annual rate (the second consecutive decline) as output
During the second quarter, hourly compensation increased 12.0 percent.
Unit labor cost, which reflects changes in both productivity and hourly compensation, increased 6.8 percent in the third quarter, down from a 15.1 percent
increase one quarter e a r l i e r . - This was. the smallest quarterly rise in these
costs in the private business sector since the 6.6 percent increase during the
third quarter of 1978.
During the second quarter, productivity had
f e l l 12.3 percent and hours were reduced by 8.9 percent (table 2 ) .
-6-
-5Hourly compensation increased 8.4 percent in the third quarter, compared
with a 10.8 percent increase in the second quarter.
After adjusting for the
Hourly compensation increased 12.0 percent in the third quarter, but rose
4.5 percent after adjusting for the increase in the CPI-U. One quarter earlier,
increase in the CPI-U, real hourly compensation increased 1.1 percent in the
real hourly compensation increased 1.4 percent. Unit labor cost increased 15.1
third quarter.
percent, compared with a 20.9 percent increase in the second quarter (annual
In the second quarter, i t dropped 2.6 percent (seasonally
adjusted annual rates).
rates).
Unit labor cost rose 5.7 percent in the third quarter, the smallest
increase since the second quarter of 1978.
Compared with the third quarter of 1979, productivity declined 2.9 percent,
The implicit price deflator
as output fell 9.3 percent and hours dropped 6.6 percent. Hourly compensation
increased 8.9 percent, compared with a 13.2 percent rise during the second
increased 11.6 percent, and unit labor cost increased 14.9 percent. Real hourly
quarter.
compensation declined 1.1 percent over the period.
Compared with the third quarter of 1979, productivity declined 0.4 percent
as output dropped 2.3 percent and hours f e l l 1.9 percent.
Hourly compensation
Nonfinancial Corporations
The Bureau of Labor Statistics also released revised second quarter
increased 9.8 percent over the 4-quarter period, while unit labor cost rose
productivity and cost measures for the nonfinancial corporate sector today.
10.3 percent.
This sector, which includes all corporations doing business in the United States
Real hourly compensation declined 2.6 percent, and the
implicit price deflator was 10.0 percent higher than a year earlier.
with the exception of banks, stock and commodity brokers, finance and credit
Manufacturing
agencies, and insurance carriers, showed a 1.9 percent drop in productivity in
Productivity in the manufacturing sector continued to decline in the third
the second quarter, as output declined 11.5 percent while hours of all employees
quarter, in contrast to the increases posted in both business sectors discussed
decreased 9.8 percent. Previously, productivity was reported down 1.1 percent
above.
as output fell 10.7 percent and hours dropped 9.8 percent. See table B.
The 2.7 percent third-quarter productivity decline reflected a 10.7
percent reduction in output and an 8.3 percent decline in hours (table 3).
The
declines in productivity, output, and hours were all steeper in the durable
goods manufacturing sector than in nondurables (tables 5,6).
In all of
manufacturing the second quarter declines were steeper; productivity fell 4.7
percent, as output dropped 21.8 percent and hours f e l l 18.0 percent (annual
rates).
The third quarter of 1980 was the fourth consecutive quarter of
falling manufacturing productivity and the longest period of decline since
1955-56, when a 5-quarter declined occurred.
-7Table B.
Nonfinandal corporations: preliminary and revised second quarter
measures of productivity and costs.
Quarterly change at annual rate.
Seasonally adjusted
Measure
Productivity
Preliminary
Revised
-1.1
-1.9
Output
-10.7
-11.5
Hours
-9.8
-9.8
Hourly compensation
11.1
11.1
Real hourly compensation
-2.3
-2.3
Unit labor costs
12.3
13.2
-28.2
-34.7
12.3
12.1
Unit profits
Implicit price deflator
Revised data
The productivity and cost measures for the manufacturing sector contained
in this release are based on revisions to the index of industrial production
published by the Board of Governors of the Federal Reserve*
The revised
measures are shown in tables 4-6 and appendix tables 1-3, covering the period
from 1977 forward.
TABLE 1. PRIVATE BUSINESS SECTOR, ALL PERSONS: PRODUCTIVITY,
HOURLY COMPENSATION, UNIT LABOR COST, AND PRICES, SEASONALLY ADJUSTED
YEAR AND
QUARTER
OUTPUT PER
HOUR
OF ALL PERSONS
OUTPUT
HOURS
OF ALL
PERSONS
COMPENSATION PER
HOUR(l)
REAL
COMPENSATION PER
H0URC2)
UNIT
LABOR
COST
UNIT NONLABOR PAYMENTS(3)
IMPLICIT
PRICE
DEFLATOR
INDEXES 1967=100
1979
1980
I
II
III
IV
118.9
118.3
117.8
117.7
144.4
143.4
143.8
144.8
121.5
121.3
122.0
123.0
244.8
250.4
255.7
260.3
117.9
117.0
115.8
114.2
205.9
211.7
217.0
221.1
180.8
183.7
185.6
188.3
197.2
202.0
206.1
209.7
ANNUAL
118.3
144.1
121.8
253.1
116.4
214.0
184.4
203.8
123.1
120.OR
119.7P
267.6
275.3
280.8P
112.9
112.SR
112.7P
227.5
235.6R
239.5P
190.0
192.3R
200.4P
214.5
220.6
226.OP
I
II
III
117.7
116.8R
117.3P
144.8
140.3R
140.4P
PERCENT CHANGE FROM PREVIOUS QUARTER AT ANNUAL RATE(5)
1979
1980
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
ANNUAL
-0.8
2.4
3.3
9.4
-1.7
10.3
5.8
8.9
0.5
-9.6R
-1.1P
11.7
12.OR
8.3P
-4.5
-1.5R
l.OP
12.1
15.IR
6.8P
3.8
4.9R
17.9P
9.4
11.9R
10.OP
9.7
5.7
4.8
3.9
9.0
8.7
9.1
8.7
I
II
III
-0.3
-2.7R
1.4P
0.2
-12.OR
0.3P
PERCENT CHANGE FROM CORRESPONDING QUARTER OF PREVIOUS YEAR(6)
1979
1980
I
II
III
IV
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
ANNUAL
-0.8
2.4
3.3
9.4
-1.7
10.3
5.8
8.9
-1.0
-1.2R
-0.5P
0.3
-2.2R
-2.4P
1.3
-1.0
-1.9P
9.3
9.9
9.8P
-4.2
-3.9
-2.6P
10.5
11.3R
10.4P
5.1
4.7R
8.OP
8.8
9.2
9.6P
I
II
III
SEE FOOTNOTES FOLLOWING TABLE
R=REVISED
P=PRELIMINARY
OCTOBER
SOURCE:
2 7 , 1980
BUREAU OF
LABOR
STATISTICS
TABLE 2. NONFARM BUSINESS SECTOR, 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
HOUR(2)
UNIT
LABOR
COST
UNIT NONLABOR PAYMENTSU)
IMPLICIT
PRICE
DEFLATOR
INDEXES 1967=100
1979
1980
I
II
III
IV
116.6
115.4
115.0
115.2
145.5
144.2
144.6
145.5
124.8
124.9
125.7
126.2
240.2
244.9
249.9
255.6
115.7
114.4
113.2
112.1
206.0
212.1
217.3
221.8
174.3
177.6
180.5
182.5
195.1
200.3
204.7
208.4
ANNUAL
115.7
144.9
125.3
247.9
114.0
214.4
178.6
202.1
114.9
113.8R
114.6P
145.6
140.9R
141.3P
126.7
123.8
123.3P
262.2
269.0
274.4P
110.6
109.9
110.2P
228.2
236.3R
239.6P
185.9
190.OR
197.6P
213.7
220.4R
225.2P
-3.9
7.7
6.6
4.6
8.1
11.0
9.0
7.4
I
II
III
PERCENT CHANGE FROM PREVIOUS QUARTER AT ANNUAL RATE(5)
1979
I
II
III
IV
-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
ANNUAL
-1.1
2.4
3.5
9.0
-2.1
10.2
5.1
8.6
12.0
15.OR
5.7P
7.5
9.1R
17.OP
10.6
13.2R
8.9P
1980
I
II
III
-1.1
-3.7R
2.6P
0.2
-12.3R
1 .IP
1979
I
II
III
IV
0.4
-1.1
-2.0
-2.0
5.9
2.2
1.3
0.3
5.5
3.3
3.4
2.4
8.7
8.9
8.9
9.1
-1.0
-1.6
-2.5
-3.3
8.3
10.1
11.1
11.3
8.2
5.0
4.3
3.7
8.3
8.5
9.0
8.9
ANNUAL
-1.1
2.4
3.5
9.0
-2.1
10.. 2
5.1
8.6
-1.4
-1.4R
-0.4P
0.1
-2.3R
-2.3P
1.5
-0.9
-1.9P
9.2
9.8
9.8P
-4.4
-4.0
-2.6P
10.8
11..4R
10.3P
6.6
7.OR
9.5P
9.5
10.OR
10.OP
1.3
-8.9R
-1.4P
10.7
10.8R
8.4P
-5.3
-2.6
1.1P
PERCENT CHANGE FROM CORRESPONDING QUARTER Of PREVIOUS YEAR(6)
1980
I
II
III
SEE FOOTNOTES FOLLOWING TABLE 6.
R=REVISED
PRELIMINARY
OCTOBER 2 7 , 1 9 8 0
SOURCE: BUREAU OF LABOR STATISTICS
TABLE 3. NONFINANCIAL CORPORATIONS: PRODUCTIVITY, HOURLY
UNIT LABOR COST, UNIT PROFITS, AND PRICES, SEASONALLY
YEAR
AND
QUARTER
OUTPUT
PER ALLEMPLOYEE
HOUR
EMPLOYEE HOURLY
REAL
HOURS COMPENSA- HOURLY
TION
COMPEN(1)
SATI0N(2)
OUTPUT
COMPENSATION
ADJUSTED
UNIT
LABOR
COST
UNIT
NONLABOR
C0ST(8)
TOTAL
UNIT
COST
(9)
UNIT
PROFITS
(10)
IMPLICIT
PRICE
DEFLATOR
INDEXES 1967=100
1979
I
II
III
IV
ANNUAL
1980
I
II
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
117.5
154.7
131.6
244.9
112.7
208.4
216.6
210.4
127.8
198.1
117.1
116. 5R
155.4
150.7R
132.7
129.4
258.8
265.7
109.2
108.5
221.1
234.4
250.8R
224.3
233.6R
120.5
108.3R
208.9
215.0
228.OR
PERCENT CHANGE FROM PREVIOUS QUARTER AT ANNUAL
1979
I
II
III
IV
ANNUAL
1980
I
II
-2.3
-2.7
-0.3
-0.4
2.5
-2.6
0.6
1.9
4.9
0.1
0.9
2.3
10.8
8.3
8.5
8.4
-0.4
-4.1
-4.3
-4.5
-0.4
3.1
3.5
8.9
0.9
-9.8
11.0
11.1
-0.1
-1.9R
0.8
-11.5R
PERCENT
1979
1980
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
-2.2
9.3
7.3
8.8
0.4
7.9
-5.1
-2.3
11.1
13.2R
15.4
31.1R
12.2
17.6R
FROM C O R R E S P O N D I N G
?
QUARTER
OF PREVIOUS
-10.9
-34.7R
9.9
12.1R
YEAR(6)
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
-0.9
-0.7R
0.2
-2.2R
1.0
-1.5
9.0
9.7
-4.5
-4.1
10.0
10.5R
13.5
17.7R
10.9
12.3R
-7.6
-16.2R
9.0
9.5
SEE FOOTNOTES FOLLOWING TABLE 6.
R=REVISED
P=PRELIMINARY
CHANGE
RATE(5)
OCTOBER 27, 1980
SOURCE: BUREAU OF LABOR
STATISTICS
TABLE 4. MANUFACTURING SECTOR: PRODUCTIVITY, HOURLY
COMPENSATION, UNIT LABOR COST, SEASONALLY ADJUSTED
YEAR AND
QUARTER
OUTPUT PER
HOUR
OF ALL PERSONS
OUTPUT
(7)
HOURS
OF ALL
PERSONS
REAL
COMPENSATION PER
COMPENSATION PER
HOUR(l)
HOUR(2)
UNIT
LABOR
COST
INDEXES 1967=100
1979
I
II
III
IV
ANNUAL
1980
I
II
III
1979
I
II
III
IV
ANNUAL
1980
II
III
128.4R
128.7R
129.5R
129.1
139.4R
138.5R
138.4R
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
188.8R
192.6
195.1R
199.9R
129.2
138.6
107.3
250.8
115.3
194.1
128.2R
126.7R
125.8P
137.4R
129.2R
125.6P
107.2
102.0
99.8P
264.6
274.1
282,OP
111.6
112.0
113.2P
206.4R
216.4R
224.2P
P E R C E N T CHANGE FROM P R E V I O U S QUARTER
-3.2R
1.1R
2.5
-1.3R
3.9R
-2.5R
-0.3
-1.3R
0.8
3.1
-1.6R
-21.8R
-10.7P
,8R
,7R
-2.7P
1980
-0.9
-2.8
-4.9
-4.2
13.7R
8.5R
5.2
10. 2R
2.2
9.1
-2.0
8.2
1.3
-18.0
-8.3P
10.5
15.2
12.OP
QUARTER
-5.5
1.4R
4.5P
OF P R E V I O U S
13.7R
20.9R
15.IP
YEAR(6)
I
II
III
IV
1.6R
0.8R
O.IR
-0.3
7.OR
3.7R
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
8.3R
8.9
9.3R
LIAL
0.8
3.1
2.2
9.1
-2.0
8.2
I
II
III
-0.2R
-1.6R
-2.9P
-1.4R
-6.7R
-9.3P
-1.3
-5.2
-6.6P
9,2
10.5
11.6P
-4.4
-3.4
-1.1P
12.4R
14.9P
SEE FOOTNOTES FOLLOWING
R=REVISED
P=PRELIMINARY
RATE(5)
10.1
9.6
7.8
8.8
P E R C E N T CHANGE FROM C O R R E S P O N D I N G
1979
AT A N N U A L
7.3
-3.6
-2.7
-0.1
9.3R
TABLE 6,
OCTOBER 27, 1980
SOURCE: BUREAU OF LABOR
STATISTICS
TABLE 5. DURABLE M A N U F A C T U R I N G 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 C O S T , SEASONALLY A D J U S T E D ( l l )
YEAR AND
QUARTER
O U T P U T PER
HOUR
OF ALL P E R S O N S
OUTPUT
(7)
HOURS
OF ALL
PERSONS
COMPENSATION PER
HOUR(l)
REAL
COMPENSATION PER
HOUR{2)
UNIT
LABOR
COST
INDEXES 1967=100
1979
I
II
III
IV
ANNUAL
1980
I
II
III
120.9
121.3R
121.OR
120.8R
135.4
134.1R
133.2
132.6R
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
205.3R
209.5
214.1R
121.3
133.8
110.3
251.8
115.8
207.5
119.3R
118.3R
117.2P
131.4R
122.1R
117.9P
110.1
103.2
100.6?
266.3
276.5
284.4P
112.3
112.9R
114.2P
223.2R
233.7R
242.7P
P E R C E N T C H A N G E F R O M P R E V I O U S Q U A R T E R AT A N N U A L
1979
I
II
III
IV
ANNUAL
1980
I
II
III
RATE(5)
-4.8R
1.3R
-0.9R
-0.8R
4.OR
-3.9R
-2.7R
-1.7R
9.3
-5.2
-1.9
-0.9
9.8
9.6
7.6
8.1
-1.3
-2.9
-5.1
-4.8
15.3R
8.1R
8.5R
9.OR
-0.1
3.2
3.3
8.9
-2.1
9.0
-3.4R
-25.5R
-13. IP
1.3
-23.0
-9.7P
12.6
16.2
11.9P
-3.7
2.2
4.4P
18.2R
20.1R
16.3P
7R
2R
-3.8P
P E R C E N T C H A N G E F R O M C O R R E S P O N D I N G Q U A R T E R OF P R E V I O U S
1979
I
II
III
IV
ANNUAL
1980
I
II
III
1.1
-0.1R
-1.2
-1.3R
8.7
4.3R
1.4
-1.1R
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
9.1R
10.3
10.2R
-0.1
3.2
3.3
8.9
-2.1
9.0
-1.3R
-2.4
-3.OR
-8.9
-11.5P
-1.7
-6.7
-8.6P
9.4
11.1
12.2P
-4.1
-2.9
-0.6P
10.9R
13.8R
15.8P
SEE FOOTNOTES FOLLOWING TABLE 6.
R=REVISED
P=PRELIMINARY
YEAR(6)
OCTOBER 27, 1980
SOURCE: BUREAU OF LABOR STATISTICS
T A B L E 6 . N O N D U R A B L E M A N U F A C T U R I N G S E C T O R : 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 , U N I T LABOR C O S T , S E A S O N A L L Y
ADJUSTED(12)
Y E A R AND
QUARTER
OUTPUT PER
HOUR
OF ALL PERSONS
OUTPUT
(7)
HOURS
OF ALL
PERSONS
REAL
COMPENSATION PER
HOUR(2)
COMPENSATION PER
HOUR(l)
UNIT
LABOR
COST
INDEXES 1967=100
1979
I
II
III
IV
ANNUAL
1980
I
II
III
141,OR
141.2
143.9R
143.1R
145.9R
145.7
147.OR
146.7R
103.4
103.2
102.2
102.5
238.6
244.5
249.3
255.4
114.9
114.3
112.9
112.0
169.2R
173.2
173.3R
178.5R
142.4
146.3
102.7
247.2
113.7
173.5
143.1R
140.4R
139.9P
147.1R
140.7R
138.IP
102.8
100.2
98.7P
259.6
269.1
277.2P
109.5
109.9
111.3P
181.4R
191.7R
198.2P
PERCENT CHANGE FROM PREVIOUS QUARTER
1979
I
II
III
IV
ANNUAL
1980
I
II
III
I
II
III
IV
ANNUAL
1980
I
II
III
3.7R
-0.4R
3.5R
-0.8R
4.2
-0.9
-4.0
1 .3
10.2
10.3
7.9
10.3
-0.9
-2.2
-4.8
-2.9
10.7R
9.7R
0.2R
12.6R
2.2
2.8
0.6
9.1
-2.0
6.7
1..2
-9.6R
-6.IP
6.7
15.5
12.6P
-8.8
1.6
5.IP
6.7R
24.9R
14.IP
O.OR
-7.5R
-1.3P
1.2R
-16.4R
-7.3P
QUARTER
OF P R E V I O U S
YEAR(6)
2.5R
2.2R
2.3R
1.4R
4.5R
2.7R
2.6R
1.5R
1.9
0.5
0.3
0.1
8.1
9.1
9.0
9.7
-1.5
-1.4
-2.4
-2.7
5.5R
6.7
6.5R
8.2R
2.2
2.8
0.6
9.1
-2.0
6.7
1.5R
-0.6R
-2.8P
0.9R
-3.4R
-6.IP
-0.6
-2.9
-3.4P
8.8
10.OR
1 1 . 2P
SEE F O O T N O T E S F O L L O W I N G TABLE 6.
R=REVI$ED
P=PRELIMINARY
RATE{5)
-0.5R
0.5R
7.8R
-2.1R
PERCENT CHANGE FROM C O R R E S P O N D I N G
1979
AT ANNUAL
-4.7
-3.8
-1.4P
7.2R
10.7R
14.4P
OCTOBER
SOURCE:
2 7 , 1980
BUREAU OF
LABOR
STATISTICS
FOOTNOTES, TABLES 1-6
SOURCE: OUTPUT DATA FROM BUREAU OF ECONOMIC ANALYSIS, U.S. DEPARTMENT OF COMMERCE, AND THE FEDERAL RESERVE BOARD.
COMPENSATION AND HOURS DATA FROM THE BUREAU OF LABOR STATISTICS, U.S. DEPARTMENT OF LABOR, AND THE BUREAU OF ECONOMIC ANALYSIS.
RELIABILITY: THE AVERAGE OF THE REVISIONS IN THE INDEX OF PRODUCTIVITY IN THE PRIVATE BUSINESS SECTOR, WITHOUT REGARD TO SIGN,
BETWEEN THE FIRST AND THIRD PUBLISHED ESTIMATES IS 0.63 INDEX POINTS (0.53 PER CENT); THAT IS, IN ABOUT HALF OF THE CASES, THE
ABSOLUTE VALUE OF THE REVISION FROM THE FIRST TO THE THIRD ESTIMATE OF THE INDEX-ABOUT 90 DAYS—WAS LZSS THAN 0.63 POINTS (0.53
PERCENT). (CALCULATED ON THE BASIS OF DATA FOR THE JANUARY 1977 TO JULY 1980 PERIOD.)
(1) WAGES AND SALARIES OF EMPLOYEES PLUS EMPLOYERS1 CONTRIBUTIONS FOR SOCIAL INSURANCE AND PRIVATE BENEFIT PLANS. EXCEPT FOR
NONFINANCIAL CORPORATIONS, WHERE THERE ARE NO SELF-EMPLOYED, DATA ALSO INCLUDE AN ESTIMATE OF WAGES, SALARIES, AND
SUPPLEMENTAL PAYMENTS FOR THE SELF-EMPLOYED.
(2) COMPENSATION PER HOUR ADJUSTED FOR CHANGES IN THE CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS.
(3) NONLABOR PAYMENTS INCLUDE PROFITS, DEPRECIATION, INTEREST, RENTAL INCOME, AND INDIRECT TAXES.
(4) CURRENT DOLLAR GROSS PRODUCT DIVIDED BY CONSTANT DOLLAR GROSS PRODUCT.
(5) PERCENT CHANGE COMPOUNDED AT ANNUAL RATE FROM THE ORIGINAL DATA RATHER THAN INDEX NUMBERS.
(6) CURRENT QUARTER DIVIDED BY COMPARABLE QUARTER A YEAR AGO.
(7) QUARTERLY MEASURES ADJUSTED TO ANNUAL ESTIMATES OF OUTPUT (GROSS PRODUCT ORIGINATING) FROM THE BUREAU OF ECONOMIC ANALYSIS,
U.S. DEPARTMENT OF COMMERCE.
(8) UNIT NONLABOR COST INCLUDES DEPRECIATION, INTEREST, AND INDIRECT TAXES.
(9) TOTAL UNIT COST IS THE SUM OF LABOR AND NONLABOR COSTS.
(10) UNIT PROFITS INCLUDE CORPORATE PROFIT AND INVENTORY VALUATION ADJUSTMENT.
(11) THE DURABLE SECTOR INCLUDES THE FOLLOWING 2-DIGIT SIC INDUSTRIES: PRIMARY METAL; FABRICATED METAL PRODUCTS; NONELECTRICAL
MACHINERY; ELECTRICAL MACHINERY; TRANSPORTATION EQUIPMENT; INSTRUMENTS; LUMBER AND LUMBER PRODUCTS; FURNITURE AND FIXTURES;
STONE, CLAY, & GLASS PRODUCTS; AND MISCELLANEOUS MANUFACTURES.
(12) THE NONDURABLE SECTOR INCLUDES THE FOLLOWING 2-DIGIT SIC INDUSTRIES: TEXTILE MILL PRODUCTS; APPAREL PRODUCTS; LEATHER
AND LEATHER PRODUCTS; PRINTING AND PUBLISHING; CHEMICALS AND CHEMICAL PRODUCTS; PETROLEUM PRODUCTS; RUBBER AND PLASTIC
PRODUCTS; FOODS; AND TOBACCO PRODUCTS.
(13) SCHEDULING OF THE RELEASE OF THE NEW CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS (CPI-U) PRECLUDES THE USE OF REAL HOURLY
COMPENSATION (HOURLY COMPENSATION ADJUSTED FOR QUARTERLY CHANGES IN THE CPI-U) WITH PRELIMINARY PRODUCTIVITY AND COST
MEASURES. THESE WILL BE PUBLISHED TOGETHER WITH REVISED OUTPUT AND LABOR INPUT MEASURES WITH THE NEXT REGULAR EDITION OF
PRODUCTIVITY AND COSTS, APPROXIMATELY 30 DAYS AFTER THE PRELIMINARY MEASURES.
THE PRODUCTIVITY AND ASSOCIATED COST MEASURES IN THIS PRESS RELEASE DESCRIBE THE RELATIONSHIP
BETWEEN OUTPUT IN REAL TERMS AND THE LABOR TIME INVOLVED IN ITS PRODUCTION. THEY SHOW THE
CHANGES FROM PERIOD TO PERIOD IN THE AMOUNT OF LABOR TIME REQUIRED TO PRODUCE A UNIT OF OUTPUT.
ALTHOUGH THESE MEASURES RELATE OUTPUT TO HOURS OF ALL PERSONS ENGAGED IN A SECTOR, THEY DO NOT
MEASURE THE SPECIFIC CONTRIBUTIONS OF LABOR, CAPITAL, OR ANY OTHER FACTOR OF PRODUCTION. RATHER,
THEY REFLECT THE JOINT 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 CHARACTERISTICS AND EFFORT OF THE WORK FORCE.
APPENDIX TABLE 1. 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
1977
1978
I
II
III
IV
125.8
127.7
128.9
128.4
124.2
128.0
129.9
130.9
98.7
100.3
100.8
102.0
207.1
210.5
214,8
218.3
116.8
116.7
117.4
117.6
164.6
164.8
166.7
170.1
ANNUAL
127.7
128.2
100.4
212.7
117.2
166.6
I
II
III
IV
126.4
127.7
129.3
129.4
130.3
133.6
135.8
138.1
103.1
104.6
105.0
106.7
223.9
227.1
231.7
236.6
118.4
117.5
117.2
117.0
177.2
177.8
179.1
182.8
ANNUAL
128.2
134.5
1Q4.9
229.9
117.6
179.4
PERCENT CHANGE
1977
1978
1978
RATE(5)
I
II
III
IV
1.9
6.2
3.6
-1.6
10.2
13.1
5.9
3.1
8.2
6.5
2.2
4.8
9.6
6.6
8.5
6.6
1.5
-0.5
2.5
0.8
7.5
0.4
4.7
8.3
ANNUAL
3.0
7.3
4.2
8.4
1.9
5.3
I
II
III
IV
-6.0
4.3
5.1
0.3
-1.7
10.4
6.9
6.8
4.5
5.9
1.7
6.4
10.7
5.9
8.2
8.8
2.8
-3.3
-0.9
-0.7
17.7
1.6
2.9
8.4
ANNUAL
0,4
4.8
4.4
8.1
0.4
7.7
PERCENT CHANGE
1977
FROM PREVIOUS QUARTER AT ANNUAL
I
II
III
IV
2.8
3.3
3.5
2.5
FROM CORRESPONDING QUARTER OF PREVIOUS YEAR(6)
5.6
7.8
8.2
8.0
V
2.7
4.3
4.6
5.4
9.1
8.2
8.5
7.8
3.1
1.4
1.7
1.1
6.2
4.8
4.8
5.2
4.2
8,4
1.9
5.3
1.4
0.7
-0.2
-0.5
7.6
7.9
7.4
7.5
0.4
7.7
ANNUAL
3.0
7.3
I
II
III
IV
0.5
0.0
0.4
0.8
5.0
4.3
4.6
5.5
4.5
4.3
4.2
4.6
8.1
7.9
7.8
8,4
ANNUAL
0.4
4.8
4.4
8.1
SEE FOOTNOTES FOLLOWING TABLE 6.
R»REVISED
P=PRELIMINARY
OCTOBER 27, 1980
BUREAU OF LABOR !STATISTICS
APPENDIX TABLE 2. 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
1977
1978
119.9
122.1
122.8
122.3
117.7
122.2
124.4
125.6
98.2
100.1
101.3
102.7
209.1
212.5
216.8
220.3
117.9
117.8
118.5
118.7
174.4
174.1
176.6
180.2
ANNUAL
121.7
122.5
100.6
214.7
118.3
176.4
I
II
III
IV
119.6
121.4
122.5
122.4
124.6
128.5
131.3
134.1
104.2
105.9
107.2
109.6
225.4
228.5
232.7
237.7
119.2
118.1
117.7
117.6
188.5
188.2
189.9
194.2
ANNUAL
121.4
129.6
106.8
231.1
118.3
190.4
I
II
III
' IV
PERCENT CHANGE FROM PREVIOUS QUARTER AT ANNUAL RATE(5)
1977
-0.7
7.4
2.3
-1.6
8.4
15.9
7.4
4.0
9.3
7.9
5.0
5.7
10.4
6.7
8.4
6.7
2.2
-0.4
2.5
0.8
11.2
-0.6
6.0
8.4
2.2
7.9
5.6
8.4
1.8
6.1
I
II
III
IV
-8.5
6.2
3.8
-0.5
-3.2
13.2
9.0
8.8
5.8
6.5
4.9
9.3
9.5
5.5
7.6
9.0
1.7
-3.6
-1.5
-0.5
19.7
-0.7
3.6
9.5
ANNUAL
-0.3
5.8
6.1
7.6
0.0
7.9
I
II
III
IV
ANNUAL
1978
PERCENT CHANGE FROM CORRESPONDING QUARTER OF PREVIOUS YEAR(6)
1977
2.2
2.6
2.5
1.8
6.5
8.3
8.6
8.9
4.2
5.5
5.9
7.0
8.6
8.0
8.7
8.0
2.6
1.2
1.9
1.3
6.3
5.2
6.0
6.1
2.2
7.9
5.6
8.4
1.8
6.1
I
II
III
IV
-0.3
-0.6
-0.2
'0.1
5.8
5.2
5.6
6.8
6.1
5.8
5.8
6.6
7.8
7.5
7.3
7.9
1.1
0.3
-0.7
-1.0
8.1
8.1
7.5
7.8
ANNUAL
-0.3
5.8
6.1
7.6
0.0
7.9
I
II
III
IV
ANNUAL
1978
SEE FOOTNOTES FOLLOWING TABLE 6.
R=REVISED
P=PRELIMINARY
OCTOBER 27, 1980
BUREAU OF LABOR STATISTICS
APPENDIX TABLE 3. NONDURABLE MANUFACTURING SECTOR: PRODUCTIVITY,
COMPENSATION, UNIT LABOR COST, SEASONALLY ADJUSTED(12)
YEAR AND
QUARTER
OUTPUT PER
HOUR
OF ALL PERSONS
OUTPUT
{7)
HOURS
OF ALL
PERSONS
COMPENSATION PER
HOUR(l)
HOURLY
REAL
COMPENSATION PER
H0UR(2)
UNIT
LABOR
COST
INDEXES 1967=100
1977
135.4
136.9
138.8
138.3
134.6
137.6
138.8
139.5
99.4
100.5
100.0
100.8
204.1
207.1
211.0
214.3
115.1
114.8
115.3
115.5
150.8
151.3
152.0
154.9
137.3
137.6
100.2
209.1
115.2
152.3
I
II
III
IV
137.6
138.1
140.6
141.2
139.6
141.8
143.2
144.5
101.5
102.7
101.9
102.4
220.6
224.2
228.7
232.9
116.7
115.9
115.7
115.2
160.4
162.3
162.7
164.9
ANNUAL
139.3
142.3
102.1
226.7
116.0
162.7
I
II
III
IV
ANNUAL
1978
PERCENT CHANGE FROM
1977
I
II
III
IV
ANNUAL
1978
I
II
III
IV
ANNUAL
PREVIOUS QUARTER AT ANNUAL
RATE(5)
5.9
4.6
5.7
-1.4
12.9
9.2
3.7
1.8
6.6
4.4
-1.9
3.2
7.9
6.0
7.8
6.3
-0.1
-1.1
1.9
0.5
1.9
1.4
2.0
7.8
4.2
6.5
2.2
8.2
1.6
3.8
-2.1
1.6
7.3
1.7
0.4
6.6
3.9
3.8
2.6
4.9
-3.2
2.0
12.4
6.5
8.3
7.5
4.4
-2.7
-0.8
-1.8
14.8
4.9
0.9
5.7
1.5
3.4
1.9
8.4
0.7
6.8
PERCENT CHANGE FROM CORRESPONDING QUARTER OF PREVIOUS YEAR(6)
1977
I
II
III
IV
ANNUAL
1978
I
II
III
IV
ANNUAL
3.6
4.3
5.0
3.7
4.2
7.1
7.8.
6.8
0.6
2.6
2.6
3.0
9.5
8.3
7.8
7.0
3.5
1.4
1 .1
0.3
5.6
3.8
2.6
3.2
4.2
6.5
2.2
8.2
1.6
3.8
1.6
0.9
1.3
2.1
3.7
3.1
3.2
3.7
2.1
2.2
1.9
1.5
8.1
8.2
8.4
8.7
1.4
1.0
0.3
-0.3
6.4
7.3
7.0
6.5
1.5
3.4
1.9
8.4
0.7
6.8
SEE FOOTNOTES FOLLOWING TABLE 6.
R=REVISED
P=PRELIMINARY
OCTOBER 27, 1980
BUREAU OF LABOR STATISTICS
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
III
1.4
15
10
5
0
-5
-10
Compensation per hour of ail persons
III
8.3
15
10
5
0
Unit abor cost
rn
6.8
Unit nonlabor payments
III
17.9
35
30
25
20
15
10
5
0
-5
-10
-15
Implicit price deflator
•
1973
1
1974
L
1975
III
10.0
f
1976
20
15
10
5
0
-5
1
1977
|
1978
20
15
10
5
0
i
1979
1980
Chart 2. Productivity, hourly compensation, unit costs and prices
in the nonfarm business sector
(percent change from preceding quarter ot annual rate)
Output per hour of a!! persons
Ill
2.6
15
105
0
-5
-10
Compensate on per hour of all persons
III
a, 4
Unit
abor
cost
in
5-7
Unit nonlabor
Implicit price
15
10
5
0
payments
25
20
15
10
5
0
-5
III
17.0
30
25
20
15
10
5
0
-5
-10
-15
deflator
III
6.9
20
15
10
5
0
1973
1374
1975
1976
1977
1973
1979
1980
Chart 3. Productivity, h<?urly compensation, unit costs-and prices
in nonfinancial corporations
(percent change from same quarter a year ago)
Output per hour of all employees
II
-0.7
15
10
5
0
-5
Compensation per hour of all emp oyees
II
9.7
15
10
5
0
15
10
5
i
0
i
Unit nonlabor payments
II
7.4
25
20
15
10
5
0
-5
mplicit price deflator
II
9.5
15
10
5
1973
1974
1975
f
-4
1976
h
1977
+
1978
0
1
1979
1980
Chart 4. Unit costs, unit profits,, and prices In nonfinanclal
corporations
(percent change from same quarter a year ago)
Unit 1 abor cc>st
!
\
II
10.5
—
1,0
:
0
Unit rion labor• cost
II
17.7
1
30
•
1
\
l
—
—
—
—
20
10
L
— - . - — — — -.—
L ———-—-J
1
Total unit
20
c ost
1
II
12.3
1
n
U
-10
20
\
15
\
10
\
.—
\
L- — - . . - .
Unit f - - - - — — -
L • * « - —- J
r ^
j
. J
^
mmmim
5
0
J
r
II
-16.2
profits
—
—
—
—
—
—
—
30
70
I
1
/
|
1
1
i
i
i
i \
1973
1
I
i
,
i
1974
50
\
1
;
!
1
1
40
1
1
1
30
i
20
i
: V
i/'
kA
1
1
i \
\
I
60
\
i \
i \
1
1
r
i
1
1 i
. .
1975
I
I
I
.
1976
'
K
l
l
1977
-10
-20
i
I
i
10
n
u
l . i .
1978
-30
i
1979
I960
@FedFRASER