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v
u.
~EWS ~
S. DEPARTMENT OF LABOR
OFFICE OF IMFOiMIIiOM . WISHIMGTOM , O. C. 20210
FOR JU:LEASE:
IISDL - 12-326
A.M. Editions, Friday
J.\a). 16. 1971
5ur ••" of Labor Sta,t. tici
%1-2431 or 961-11 49
Produotivity in oh. nonfi nancial eorpout. . . cto r rO . . Iharply in tha firs t
quarter of 1912 ... !nly . . . . <.... ult of • lar ,_ pin in cutfut, the II. S. Il<part ... nt of
e""'pared to 4 . 7 p.. ce~t in tha fou<th quuter of 1911,
ufhct1n~
an . ooderatio n In
flut q .... rt . . ,
Uct.orS during the fint quartu .
of tne Groos
.\Ote:
~atlon.l
Th . . . datI .hO<o'ed ol1s!>tly larger increase.
Product and the
~uf.oturing
"itn thU tel ••u , the Buruu o f Labo<
p~ltC.tlon
preceding
production index .
Suthti~
of • quarterly report on productivity in
~nth
i~
hgt". regular
no~flnancl.1
on p<oductlv1ty In the private, private nonfan.,
corpora-
.~d ~u-
het"r1"g .. ctora b.ud on ravioion. In *otl... ' .... of ero... National
Product.
sobj&ct to
seeton.
pr~u
In general . ""tput and productivity in
~lder .~lng.
th~~ 1~
,ho
~r&
t~&
corporate u n o r . u
co=proh&~.lv.
priva,e and nonfara
Q,h-. oharacteriOtic. o f the n .... u d .... "'&n uplain.d in USOL
r d u u 72-242 i nuerl April 2S.
\
,
Tabl. A.
i.reent Chan,. in Froductivlty and Coltl It Annual Rat ••
(S. H onoUy Mjustad)
4th Q>urtu 191'1
in
"
!Nan .. 1972
lot Quarto, 1971
"
lot Quarter 1972
Nonfinancial Corpora'!"",,, (Pnl1101naryl
Output per .an-hOUT
eomp.naatlon peT ..n ~ hcur
Unit l ab or co ...
a. . l compentatlon pI. :4n-hcut
,. ,
,. ,
•••
10.1i
TOtil Prlvat. (rlvt •• d)
Output pu ....,,- hO\lt
Gompenution per .... n-it""r
!}nit iMlor coHI
&ad ,,,,,-;>onu,l= pu """,-hOUT
'-'
•••
..,
,.,
,.
PriVat I N""! ..... (u"lud)
Output per
04~-hour
Co=p en•• tlcn por """,-hour
unit labor eo.t.
11<111 00"l'"OU 01"" per """,-hou r
•••
,.,
,.,
,.,
•••
..,
Manuf acturing (uvi •• d)
Output p e r .... a-hour
Co<tq>enUtlon pu """,-hour
Unit labor cooto
Ro.l cO"l'ln •• tion por
~-hou r
•••
tor the privat i conh ....... ctor and 3.0 poreent tor m.anufacturlol.
..
,
,.•••,
,.,
,
1I0urly co"..enution to . . u
the expect ed
bul~
an
a.~nual
lQ.~
u u of
pHcent, tefl.ttlna not .",ly
foll""J;ng the Ph". . I freea period, but aloo
retroact1v~
paymento and increased e",ploye r contribution. to Social Security.
".ge
Althouih the cOOlpen-
ution uti".,u obtained fro", the national income account. include ntro active ".lIe
pay",ents earne d in the flut quaner , they do not include ntroactivo pay,.,.neo urn.d
in t he fou rth quartH of 1971 .
are toO low by the
~unt
Thus, the co«ponsation level. in the founh q\!.Orter
of earning. &pprovod retroactively.
Thi$
t.n~
to over.ta'a
tha p . . c~nuge change 10 compenaat!on por <nan-hour in the fint quarte r &nd understa,e
the chOtlge in the fourth quart er.
Over tha No quanero , i. e .• fro:!: third quarte r of 1971 to Une quarur of 1912,
the hen ..... at a n annual rat e " ... 6.8 percent.
Over the four""'l.uanar puiod
u~ing
"'ith the Urst quartu of 1972, c"",peuatlon per ... n-hour incn ... ed 6. J perCent.
Hourly CO"f>.n ... t1o~ gains " e re larger than Iner~as es in the <:<>nOtmer
r.sutting
1~
a sharp tnoreaU in rul co,*,,,,,. .tlon pu "an- hour - -
cOntrast to 1.0 pucont i n the fourth quarter .
~. 8
price index ,
percQnt in
The inenan fro= lH quutn 1911 to
a t quart4r 1972 " ... J . 1 percent .
hcauae the increases in hourly
labor c""to rOSe
..,~rately
at a 3 . 2
coo:;pa~8atl0n
p~ rce n '
excuded the productivity gain, 'mit
armual rate.
I n cont r a" , unit nonlabor
cooto (such as c apital conaumptlon allowance. , net interest , a nd indirec' business
taxea) declined by 2.8 percent, ...
th~ •
•
r .la tlv ~ ly
fixed charge. "ere opread over a
la r ge r prod uc tion bue.
Total unit cQAt. (lab or and nonlabor cos"
<l~cuau in
non labor coo ts off. . t " good part of tn. tin in unit l abor costs .
per unit of output ,""U at a n a nnual raU of
chang. tn the 4th qual'tH of 1971.
quan~~
20 .~
pueent, &tter .h",:[ng
Profit.
vi~tually
no
Over th four quutors begin~in g with th~ fint
of 19J1 , unit proHn rose 4 . 2 percent .
(
com1ined) increased .lightly ... the
Typically, b\ per i ods of rapid econon:i.c
•
up .... I .... , proUt u r llna bliin to "Ida" u
'11111 Ino ...... brought "nit profito to
1'1>.
l~l1C1t
.bo~t
p . odu~tlv1ty
the ..... hvool ...
• Illpt d.<;U". 1" the fourt h qu ......
&t
I
3.~
eo.p.~
ul1ato. for llonUnCichl eorporulonl r .... by 1.2
I~
1969 .
price deflator. whloh .. Ibet. ol>ansu In unit labor O<>lt .. unit
nonlabor COlt. and unH proUt., I nc •• &. .d
(
Incru... ""to upldly.
pUce"t a:>naal UtI,
c~ ..ed
to the lot qUlrta. of 1971, th ..
p.rc"'~.
to
~rlc.
Table J.
'"
OUlpul
"".n-h our
Ye ar .. "d
q uarter
19 71
1st, ..
2nd . ..
)rd •.•
4lh ...
106.9
107.4
108.5
109. J
Annua l love.
1972
1st. ..
TOlal Private Econ01llY:
pUl per H.~"-Hour, Hourly CotIIpensatlon, Unit
Cos t, a~ (l Prl c e9, Seaso n"lly Adjualcd , ( In dexes 1967 • 100)
Outp ut
~.n -houT9
'"
Unll nonlabor p"y""'nla 11
Unit labor
cost
"
Impllcll
price
deflator
110.0
J\ 1. 7
129.8
131. 7
I JJ. 7
1J5 . I
108.6
109.0
109.6
110. I
121. 4
122.6
123. J
12J.6
110.4
Ill.7
112.6
1l).0
117 . I
1 18. 4
I 19 . I
U9.5
108.1
109.8
101.7
1)2.6
109 . J
In.7
1Il.9
U8 . 5
109.9
II). J
1)).9
Ill. 5
125.5
113.8
1971
1 st . ..
2nd ...
Jrd ...
4<1, •..
109. )
,
10). 1
..,
,.,
..,
~.
).,
U
' .0
' .1
'"
).2
"
Annual Au,,"
).,
1972
Is t ...
2.)
1971
lat ...
2nd ..•
Jrd ...
4th .••
1972
1st. ..
loOl"OU'~
"
Rea l
eoropcnsatlon
.an-hour
101. )
10 1.7
101.1,
!o2.2
108.3
,
).S
).0
).0
'"
' .S
... <cnd -,
'"
,
'"
O. I
,.,
'"
,., ,
,
"bl,'
).,
..,
,.,
,
,.
'"
)
0.'
,.,
'"
'"
'"
..,
'"
,.)
"'
Annual Rate
U
U
'"
).,
~
..
'"
'"
,.,
,
..
,., ,
'.1
,
, .)
,
1.0
' .S
).,
'"
'"
,
'"
'"
).
).0
,
U
L2
)
'"
,. ,
Previous V.. ar 1/
,. ,
12 0.9
,.)
'"
).)
, •0
U
,
y
5/
,. ,
L>
U
",
I• • 2
Percent Q.anll"
'"
,. ,
6-.2
).0
'"
Over )'revlous Quarl"r
S.,
1
,.)
U
,
a,ang"
Percent
See
eompeM a lion pc r
man-hour
- - - - - - - - -,-
,.
).1
,
'"
'.0
'"
U
I, • 5
).,
U
,
n'v;'''' ''
I'r. ·l i,.i".,,.·
).)
---
Table
'1 . a r 00'
q u arter
,.
'"
Output
-.an-hour
Prival" Honf ..... Sector:
'ut POt i'lan-liour, Hourly ec-p.,nll at lon, Un I ~
and PrIce., Se ..... onuly A<lJUAced, (Inde~8 1967 -
'''''.
Outp ut
"'0,
Han-houu
Co.pe""ation per
san-hour 11
. .d
coepen.ation pcr
.... n-hour
~ \l 1l
111 t
•••
2nd ..•
l td ...
~ th
...
Annual Iwe.
1972
ht ...
105.8
106.5
107.1
108. )
108.5
109.5
110.0
111.9
102.5
102.8
102.6
103.1
128.4
107.0
110.0
102.8
109.4
,
,
113 . 9
,
•••
18 t •••
2nd ••.
, .1
'"
..,
l r d ...
121. )
ltO.9
1)2.Z
ill.8
In.s
liZ .2
llZ.8
112.6
111.4
J 18.6
119.4
119.4
131.2
108.1
122. 7
112.1
118.7
136.8
110.6
125.1
lll.t
4th •••
).
Annu ,,). Avc.2'
1972
19H
J.'
••
See footnotes
"
L6
'.l
•••
l.'
1.1
~
l.'
,
l'
LJ
l.J
end of
la~
Je
,
,..,..
>.. ,
'.1
,.,
l.'
1.'
,., ,
"
,
,.
Annual
u
.m
,
120.5 r
..•••,
"
L9
..,
..,
,,. ,
..
..,
'"
1.'
1.'
'.l
,. J
1.'
•••
'.J
'"
l.l
1. 7 r
4.Cl r
'.l
'"
Percent O . ange Om !' .."vlous Yen
1.1
' .1
,
.. ,
.6
,. ,
)
'"
•. 0
4t h ...
1972
1 .. 1.
,
1. )
1.1
'.l
b t •••
2nd .•.
3 rd .. .
'.1
,.
,
J.'
I s t ...
•••
,.,
e.,
,.,
"
122.4
123.4
rercent O"m&c Ove r Previous Quarter
19 7J
'"'' ,
lmplldt
price
deflator
107.4
108.0
108.3
109.0
no .•
104.2
Unit nonlabor pay ...ent. 11
Labot'
cOlt
'"
0.'
,]
, .1
, .1
'.l
...
,.,
,.,
,
.. ,
, .1
l.'
1.l
•••
1.' r
J.1
)., ,
..
J.6
1.l
1.'
..,
,l,.. l,
..
'-'
,
,.
• n·vL.. ,·,1
'"
- - --
1",·ll.I",,·v
"
Table 3.
•.,
-~~--~
V... r
qUArt""
..
~--
Manufac t uring Sector: Output pe~ H.o.n-llou r, Hou r ly CoIIpeWl"Hon, and
lh>.1t Labor Coeu, Se... on"l1y AdjWlted, (lndelles 1967 - 100)
---._-_.
--
0,,'1'''' I';' r
..... "-lIo"r
l~ llpul
19H
lit ...
2nd ...
J r d ...
~~h ...
112 • 2
112.4
1I 1.5
105.J
94.4
129 • 1
106 . 5
115 .8
,
1911
I l l . ..
2114 ...
l.d ...
4th •••
1912
3.'
lit ...
fOOtROtU
"'
,., .,
,
95.5
Pft TCftnl OIangft
,.,
',-...
1I.5
..
,
,. , ,
,., ,
..,.'-',,
..,
19.2
ht ...
".
108. 1
,'-,
Annual Ave . y
r"~u
1 15.6
114.9
..
,.,
2nd ...
Jrd •..
4th ••.
Un Il l abor
106 . 5
106.4
106.5
106.8
.. ,
..,
I l l ...
c-pensAl l nn
,""n-hour 11
I 27 . 2
128.6
119.9
131. 1
Ill . 4
1971
"
~,
9 4.6
94 . 7
93.9
94 . 6
1972
I l l ...
~.,
10~. 2
106 .0
105.3
106 . 1
llO.l
I l l . 'l
..... nuAl ,Ive .
"
t:ooop,·n."t I on per
. .III hn" r
Man-II .......
rrft"loUll Qua r t"' ''
'-"
,.,
'-'
'-'
U
,
,
108.5
••
,...,
'-'
.
•••
3.' ,
•
,....
,..
•••
,•••
••• ,
•5.•••
5. ,
'., ,
,
118. 4
,.,.,, "
•••
..,
..,
>.8
..,
,. ,
I lb. 6
,
Ann .... 1 b<o
Pe r cent OIang. Ovftr Puyl"". Year
,
t able
,.
-,
1)4.2
J 15 . II
"
,.,
'-.
,.,
'-'
,.,.,,
L.
'-'
' .4 ,
'.' ,
,'-'..
,., ,
,..
..
7.7
L'
L.
L' ,
'.4 ,
,•
•
rGyiaeu
• p r eltalnory
Table 4.
m'
YO-a r
Qua rter
Output poor
Dan-hour
Nonfinancial Corporations: ~~ tl'ut per Man-Hour, Houdy CoIopcnsstion,
Unit Costa, Unit ProUta and Prices, Se .... on .. 11y Adjusted
(lndexu 1967 .. 1(0)
Output
Man-hours
Co.pcnsatlon
,0<
man-hour }j
1911
lat • ..
2n d • . .
3td •. •
4th • ••
110.0
111.0
112.3
113.6
Mnual "'Ie.
lU.6
,
Real
cOIIpenaation par
.. an-hour Y
"''' ,
CoSt
115.5 P
...'"
10.9
128.0
130.1
132.1
133.2
107.1
107.7
108.3
108.6
116.4
117.1
117.7
H7.3
126.4
127.3
130.5
01.2
83.5
83.1
63.1r
113.5
116.5
IH.l
115.0
112.1
100.4
130.7
107.8
117.1
128 . 1
63.7r
114. 5
117.6 I'
101.8 I'
136.6 I'
110.41'
118,21'
1)0.31'
87.0 I'
116.01'
{ootnote.
'.0
0.'
9.0r
4 . 6r
'"
12.0 P
.....,..,
1911
1st ...
2nd •••
3rd ..•
4t h ...
1972
Is t •••
,,'
14.8
4.7r
7.0 P
"
,.,
0.'
,.,
'"
..,
,. ,
,.,
,.,
'"
, .0
5.9 r
'"
7 . Or
LO
5.0 P
6.41'
1.3 I'
6.7 p
0.'
L'
,.
..,
,.,
,.,.,,
'"
'.0
'"
LO
,
,.,
'"
'.0
-
'"
'"
,.,
61.9
II. 0
- 11.6
- O. lr
'"
'.0
11.4r
3.2 P
2. a p
20 .4 I'
,.,
11. 5
11. 2
10 . 5
......'"
,.,
'"
0.0
..,
,.,
,,.,
) •I P
1.6 1'
1. I P
'"
,•
65.7
,/
1. 3r
4.6 p
10.4
6.81'
Percent (hange Over Previoua Yur 71
,.,
,.,
'"
'.0
end of table
lSI
I mplicit
price
dnfh.tor
100.5
100.5
99.6
100.6
Percent Change Over Previous Quarter et Mnuel Rate
1911
1st ...
2nd •••
lrd .•.
4th ..•
Annual "ve.
1972
lst ...
Unit
ProHts
110.5
111.6
111.9
114.3
19 72
Is t • ••
Unit
non-labor
costs 9/
labor
..... vised
..
,.,
15.5 r
4. 2 P
, .. preU.lnar y
,.,
'"
'"
'"
0.'
3.5 P
,'"..
..,
U
2.2 P
FOOt~O,ES ,
Source,
tABLES 1 TO 4
Out~ut
data f ro:::; the Su:eau of EC'lno",ic ;.naly,;is,
u. S. P"part",en~ of Co=erce ar.c! t~e Federal Reserve Board . Co"'pensa:lon and ",an-hou~s data froo the Su~eau of Laoor Sta:istlcs,
U. S. P"part",e~t of Labo r ~,d tn e Bu~eau of [ cono~ic &,alysi9 .
1.1 Wages and sl!.laries of ":::ployees plus e",ployers' cont~ibutio,,"
ior sodal ir.$ur ·~"ce and prlvat" ber.efit pla:l'; . Ex cept for nonfba:1cial
cor~ornti~"s, ·.·"ere there a ~ .. no s",l:: - e::-.;Ioyed, data also inclu~~s a"est1ca~e of wages , salades a:1d ""ppie",,,,ntal pa)'m.. :1u for the self ·
e",ployed .
11 Cocpe:1sation per ma n-hour adjusted for changes in the Consu:::er
Price Inde x .
3/ Nonlabor ?"yoents i nclude profits , depredation, interest,
rental inco:::;" and in~iTect taxes .
41
!";:rMS
Current dollar gross product divided by conStant dollar
product.
21
Percent
_6..1
Fercentage change of annual average.
11
Current
c~ ange
cOQPounced at annual rate froo origin.l
data .
~u"rter
divided
~y co~?araole
quarter a year ago.
81 Quarterly "",asure,; adjusted co annual ut i oates of output
(gross product originating) fro:o the Bureau of Econotlic Analysis ,
U. S. De~art",e<tt of Commerce .
~I
Unit non labor cOStS inclu1e depreciation, interest and
lndi,.ec:t taxes.
lQl
Unit profits include corporate pro (its and in .. <'ncor), v aluatior.
adju~t",el\t.
CHART 1
PRODUCTIVITY. HOURLY
COMPENSATION . UNIT COSTS AND
PRICES - -NONFINANCIRL CORPORATIONS
(PERCENT CHANGE FROM SAME
QUARTER A YEAR _-,-_
RGO) _ _-,-_ _
_ _ _ _~-OU1~UT
i
o
·-----r------------~-----··-·--·-~·-····------
r _-ceo'/l
·
r
•
•
•
•• •
PER "RNHOUR
:-
r~------ - ---~------------{------------
.
:
,
1
5.0
-: ---------- - .......... ~
: .... ---.-~-------------{-------------.v
:
:
:
,,
,,
10
5
o
-5
15
COMPENSATION PER MRNHOUR
•
•
••
,
----1~
-
1
6.7
•
.....----~----- ' .
- .... -.. u~uunu------r-------------!-------------i
f----.-.-.<..::r::h
......... ___
•
•
•
••
•
n
••
•
10
5
o
15
UNIT LABOR COSTS
•••
•••
•
.... ------~------------~-- --------r-----
10
5
••
o
15
UNIT NONLABOR PAYMENTS
••
••
1
••
,
•4
•
~---------..... .
.. _------------------, ------------+------------.;.----------••
,•
:•
:•
••
•
• ------- - - - • _-- --------"-------------i-------------•
.-----------.---...
-.
•
•
••
••
--_
·
.....
•
~·=..::.: ·.: ::. ::..J-~:..::·::..::..::..: ·p: ·:t:~-: C: E.: .O: .E=F.=~ J·fEO~.R~~~:~~li~~~~~:
. ~.~·<t!..·~~..~..~..
_2._"_1
.. .. ..
...
I
\967
,
.1.
1968
1969
.1
1970
•1
1971
1972
10
5
o
-5
r:
,
CHRRT 2 .
UNIT COSTS . UNIT PI<OFITS RNO
PRICES--N ONFINRNC IAL CORPORATIONS
(PERCENT CHANGE FRO M SRME
OIJRRTER A YEAR At:,l )
,
,,,
..
,,
,
,
,....
LABOR COSTS
. ....... t · ....
.. . ... .
,
,,
~
,
,,
,,
,,
,,
,
,,
,
,
,,
,
'" '"
......., ......
tl OtlLA60R COSTS
,,
,
...~....
,,
'"
,,
,
... · ···c·
, ····
,
,,
,
,,
,,
U
,
,,
,,
,,
,,
,
,,
,
,,
,,,
.
,,
,,
,,,
,
,, LO
,
........... .............
,,
,
,, ,
,
,
,,
,
,
,~
,,
,
,
'" '"
,
!
,
,
i,
,
~
,,
,,
,,
,,
,,
P f' OfITS
'"
,
,
,, U
UN I T
,,,
,,
!
,,
,
,,,
,
,,
,,,
,,
,
.............•....
. .... .•..............•.............
,,
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