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NEWS
y U. S. DEPARTMENT OF
111
LABOIR
BUREAU IF LA.I. UATlSIICS
Washington, D.C.
L. J. Fulco (202) 523-9261
K. D. Hoyle (202) 523-1913
Home (202) 331-1384
.
USDL 76-56
FOR RELEASE: 11:00 A.H.
Tuesday, January 27, 1976
PRODUCTIVITY AND COSTS IN THE PRIVATE ECONOMY, FOURTH QUARTER 1975
(and annual averages for 1975)
Productivity in the private economy increased at a seasonally adjusted annual
rate of 1.0 percent in the fourth quarter of 1975, compared with a 9.9 percent
increase in the third quarter, according to preliminary figures released today by
the Bureau of Labor Statistics of the U.S. Department of Labor.
The fourth quarter
increase reflected a 6.1 percent increase in output and a 5.1 percent increase in
aggregate hours of all persons.
In the nonfarm sector, labor productivity decreased 0.3 percent in the fourth
quarter, compared with a 9.4 percent increase in the third
quarte~.
The decline
in productivity reflected a 6.2 percent increase in output and a 6.6 percent increase
in hours of all persons.
In the manufacturing sector, productivity increased 5.6 percent in the fourth
quarter, compared with an increase of 8.6 percent in the third quarter.
The pro-
ductivity increase reflected a l4.1·percent increase in output and an 8.0 percent
increase in hours.
This was the largest quarterly increase in hours since the
fourth quarter of 1972.
r
NOTE
The produ.ctivity and cost series for the total private economy and the nonfarm
sector contained in this release are based on revised National Income and Product
Account (NIPA) measures published by the Bureau of Economic Analysis of the u.S.
Department of Commerce. The revisions incorporate new source data in the NIPA as
well as changes in definitions and classifications.
2
Table A.
Percent Change at Annual Rate in Productivity and Costs
(Seasonally Adjusted)
Sector and Item
3rd Quarter 1975
to
4th Quarter 1975
4th Quarter 1974
to
4th Quarter 1975
Total Private Economr
(Preliminary)
Output per hour of all persons
Compensation per hour
Unit labor cost
Real compensation per hour
Output
Hours
1.0
7.5
6.5
0.7
6.1
5.1
4.4
7.8
3.2
0.5
2. 7
- 1.7
- 0. 3
6.1
6.5
- 0.6
6. 2
6.6
4.0
7.7
3.6
0.4
2.3
- 1.6
5.6
6.3
0. 7
- 0.4
14.1
8.0
1.6
8.7
7.0
1.3
3.4
- 4.9
Nonfarm Sector
(Preliminary)
Output per hour of all persons
Compensation per hour
Unit labor cost
Real compensation per hour
Output
Hours
Manufacturing
(Preliminary)
Output per hour of all persons
Compensation per hour
Uni t ' labor rcost
Real compensation per hour
Output
Hours
t
-
3
From the fourth quarter of 1974 to the fourth quarter of 1975, productivity
increased 4.4 percent in the total private economy, 4.0 percent in the nonfarm
sector, and 1.6 percent in manufacturing.
A summary of fourth quarter results
appears in table A; details are given in tables 1-4.
Compensation and Labor Cost
Hourly compensation (which includes wages, employer contributions to employee
benefit plans, and other fringe benefits) increased 7.5 percent in the fourth
quarter in
th~
total private economy, compared with a 6.7 percent increase in the
preceding quarter.
The increase in hourly compensation, in conjunction with the
1.0 percent increase in productivity, resulted in a 6.5 percent increase in unit
labor cost.
In the third quarter, this series declined 2.9 percent.
Real com-
pensation per hour (hourly compensation adjusted for changes in the Consumer
Price Index) increased 0.7 percent in the private economy in the fourth quarter,
after declining 1.6 percent in the previous quarter
In the nonfarm sector, hourly compensation increased 6.1 percent, and unit
labor cost rose 6.5 percent.
Real compensation per hour declined 0.6 percent,
its only quarterly decline in 1975,
In manufacturing, hourly compensation increased 6.3 percent (the smallest
quarterly rise since the first quarter of 1974), unit labor cost increased 0.7
percent, and real hourly compensation declined 0.4 percent (compared with a 0.9
percent decline in the third quarter.)
Annual Review of Productivity and Costs in the Private Economy: 1975*
The recovery from the 1974-75 business recession was reflected in many of
* Yearly
(
comparisons in this section are based on changes in annual averages between
1974 and 1975. In the preceding sections, year-ago comparisons were based on changes
between the fourth quarter of 1974 and the four~h guarter of 1975. Quarterly percent
changes are expressed in annual rates-by ~f~g~ln~ quarterly changes ~ the £od~&h
~.
Thus, the annual average index of productivity in the private :conomy was.
110.8 in 1974 and 112.3 in 1975 or an increase of 1.3 percent. For th~s same ser~es,
the index was 109.4 in the fourth quarter of 1974 and 114.3 a year later, for a 4.4
percent increase over the same quarter of the previous year.
4
the productivity and cost series of 1975.
The modest productivity increase for
the year of 1.3 percent in the private sector was a significant improvement over
1974, when productivity declined 2.5 percent.
are still evident in the 1975 figures.
But the effects of the recession
The increase in productivity resulted from
a larger decline in hours than in output; hours were off 3.7 percent from 1974
levels (the largest annual" drop since 1958), and output declined 2.5 percent,
(the largest decline since 1947) See table B.
Hourly compensation increased 9.1 percent in 1975, somewhat less than the
9.5 percent rise of 1974, but unit labor costs rose 7.7 percent, compared with
a 12.3 percent rise a year ago.
The smaller increase in this important cost
Ineasure reflects the effect of higher labor productivity in partially offsetting
the rise in compensation.
Unit nonlabor payments increased faster this year than unit labor cost (12.2
percent and 7.7 percent, respectively) while the opposite condition obtained in
1974, when labor costs rose 12.3 percent while nonlabor payments increased 5.
percent.
This reversal partly reflects the increase in unit profits in 1975.
Although hourly compensation increased at a slower rate in 1975 than in
1974
real compensation decreased less, since the rate of increase in the Consumer
Price Index in 1975 (9.1 percent) was smaller than the increase in 1974 (11.0
percent).
Revisions in Output and Compensation Series
The Bureau of Economic Analysis of the U.S. Department of Commerce recently
released revised gross national product and compensation data.
These new measures
are incorporated in the productivity and cost measures for the total private
economy and the nonfarm sector published today by the BLS.
Table B compares the
original and revised annual measures for productivity and related series; table
C shows how the revisions affected quarterly movements in the past 3 years.
5
Table B. Annual Percent Change in Productivity and Costs
Based on Original and Revised National Income and Product Account Data
1974
1973
Sector and Item
I
1975P
I
REVISED
REVISED
- 2.5
9.5
12.3
1.3
- 2.2
0.3
1.3
9.1
7.7
- 0.1
- 2.5
3.7
- 2.4
9.5
12.2
1.3
- 2.1
0.3
0.9
8.9
8.0
- 0.2
- 2.9
3.8
REVISED
ORIGINAL
2.5
7.6
5.0
1.3
6.1
3.6
2.2
8.2
5.8
1.8
5.9
3.6
- 2.7
8.7
11.7
- 2.0
- 2.4
0.3
-
2.2
7.3
4.9
1.0
6.2
3.8
2.0
7.8
5.7
1.5
5.9
3.8
- 2.8
8.8
12.0
- 2.0
- 2.6
0.3
ORIGINAL
Total Private
Output per hour
Compensa tion per hour
Unit labor cost
Real compensation per hour
Output
Aggregate hours
-
Nonfarm
Output per hour
Compensation per hour
Unit labor cost
Real compensation per hour
Output
Aggregate hours
-
-
Table C.
Comparisons of Quarterly Changes based on Original and Revised NIPA Data
. (Percent Change at Annual Rate)
Year &
Quarter
IProductivity
Orb'Rev.
1973
I
II
III
IV
Annual
1974
I
II
III
IV
Annual
1975
I
II
III
IV
Annual
TOTAL PRIVATE
Compensation
oer hour
Orig·1 Rev.
Unit labor
cost
Orig I Rev.
PRIVATE NON-FARM
Productivity , Compensation
oer hour
Orig.1 Rev.
Orig. 1Rev.
Unit labor
cost
Orig· 1 Rev.
12.3
4.8
6.3
8.7
13.6
5.2
6.9
9.4
7.4
6.9
7.4
8.0
8.4
9.7
6.6
9.8
2.8
- 1.5 - 0.1
- 0.7 -
2.8
3.6
1.1
1.7
10.1
5.6
6.7
8.5
11.4
5.9
7.3
9.3
7.1
7.2
6.8
9.3
8.4
9.9
6.2
11.2
2.2
7.6
8.2
5.0
5.8
2.2
2.0
7.3
7.8
4.9
5.7
5.1
2.3
2.0
3.7
6.6
12.9
11.1
8.6
7.7
13.1
12.4
9.7
16.4
12.6
12.8
14.4
13.6
15.8
14.7
13.9
- 7.0 - 3.1
-1.8-3.6
- 2.1 - 2.4
- 3.4 - 3.8
7.9
11.6
10.3
9.4
8.8
11.8
11.6
10.7
16. ]
13 ••
12.3
15.9
14.3
15.0
- 2.7 - 2.5
8.7
9.5
11. 7 12.3
- 2.8 - 2.4
8.8
9.5
12.0
12.2
- 0.6
4.2
11.0
N.A.
1.2
6.0
1.0
10.0
7.6
6.4
N.A.
10.7
6.4
6.7
7.5
10.7
9.4
3.2
0.4
- 4.1 - 2.9
N.A.
6.5
- 2.6 - 0.9
8.0
5.7
9.4
11.1
N.A. - 0.3
8.4
7.7
8.2
N.A.
6.8
8.7
6.1
N.A.
1.3
N.A.
9.1
0.9
N.A.
8.9
4.6
4.8
- 1.9 - 4.1
0.3
- 1.1
0.7 - 0.4
2.5
- 8.4
0.3
- 1:5
- 5.1
-
9.9
N.A.
7.7
N.A.
9.1:
13.t
12.i
11.3 10.1
1.9 - 1.1
- 2.6 - 0.7
N.A.
6.5
N.A.
8.0
7
The 1973 annual output increase in the private sector i s small e r in the
revised series and the 1974 decline is not as large.
changes are al s o smaller.
( See table B.)
On
Thus, the productivity
the other hand, the revised
increas e in hourly compensation was larger in both years reflecting changes in
farm compensation, so that there has been a considerable revision in the movements of unit labor cost as well.
In the quarterly data, the revised series indicates movement in the opposite
direction from
~he
original productivity serie s in 5 quarters out of 13 shown .
TACLE 1.
. TuT.\1. PR l'lATI: IEr.O':('I,Y, All pmsol:s: PRODLCT I VI TY
C(;~;, IWI:: PRICES, SF./,SOtll\lLY ADJLSTED
(fOuJ1LY co/ :pn:SATlOI;, WIT
YEi,H AillJ
,~I,,\;;TEJ1
flliTPL'T PEl:
II OUr:
oliT PUT
lIN/ T
TI ('If, PEn
REAl.
COI.PrtISAT10t' PEn
LABOIl
UNIT NONLABOR PAY-
HOunel)
tiOlne 2)
CuSTS
t.iENTS(3)
llu. l •
ISIl.'dl
llv.3
111. 91<
112. "31\
IIULr.S
OF ALL
pr:nSf, I;S
uF AI.L PEhSlII1S
CO~.PENSA
1~IPL
I (; IT
PRICE
EFLATOR(4)
----~
1974
157.31<
138.sn
IH.5R
141. OR
145.4R
IS0.11l
112.21<
149.61<
1H.4R
143·.4R
112.4f{
112. on
112.2P
160.9R
161. OR
159.81\
H2.4P
141. 4R
1'IS.4PIS'I.6R
l!> 7 .~H
1~6.8P
IbO.3P
112.1P
1&1. OP
149.7P
1!>1l.7P
13.CiR
1. 2R
1. 8R
8.9R
10.6R
nO.sl(
110.1
IO'.l.41l
113. H<
10C.5
172.1R
121.51:
llJ~.(
11>5.81<
115.6Il
IH.51<
1(.05.3
17u.6r,
J.l2.3R
HiI •• C
I\) ~'.:')
)79.31<
1182.3f<
185. fiP
130.8P
IV
I
II
III
111. 6R
130.4R
131. OR
13',.2R
1£o3.ld·l
1&8.2R
111.71<
111.01:
AIH/UAL
1975
112.3R
1'.7.1 R
IS2.2R
123.3n
122.5H
121. Gli
I
II
III
lU9.un
IV
111. 41<
U4.0R
114.31'
120.1n
121.9P
M,IILAL
l1i..3P
113.51'
',/(; .61'
1111.81{
153.5R
l)S.IR
PEnCEIJT CIiAlICE FHoCrnEVIOU$ QUARTER fiT AtillUAL RATE(S)
1974
-5.11<
-2.3;-,
-2.5 n
IV
-3.71<
-2.9[,
-~l. :.H
-5.6
-2.21\
0.3
-2. or:
AfWl.;,\L
I
II
III
IV
975
AllllLAl
-5.Cin
-o.!)
-lu.2R
G.on
3.2R
'.1.91'
13 .In
U.lP
5.1P
-2.51'
-3.7P
1. or
1. 31'
-2.31<
1974
-lJ.2
1. 2H
PEnCFtiT CIiAl! ·
III
-1. !In
-2.51(
IV
-0.31<
-1. on
-11.3n
-2.7
2.9R
7.7R
13.1R
-'•• 01< .
]. 5R
12.'.r<
O.(lR
IS.8R
14.7R
!l.7k
-2.51,
13.9k
10.1R
13.7R
13.1R
13.81l
9.
51~
-1.31<
12.3H
S.2R
9.7k
lO.7R
6.4R
o."n
2.6f<
9.4R
0.4n
-2.9R
8.6R
11. 7R
27.8R
6.5 P
5.8P
9.1R
4.2R
7.41<
6.3P
7.7P
12.2P
9.3P
7.5P
-1.61l
0.7P
1l.1 P
-O.lP
6.7f'
Fnor··' conRES -- '· OI NG QUARTER OF pnE'! I OLS YEAn e 6)
2.1 ·
C.'J
0.0
7.31<
!l. 2R
10.GR
10.7f<
-2.3R
9.9k
11. 4R
13.4R
14.SR
5.IR
-O.7R
-1.3R
4.7R
4.9R
6.6R
8.1R
8.9R
10.3R
11. 6R
-1.2fj
-3.31l
-Z.5R
-5.IR
-1. tl.
AtllluAl
-2.5n
-2.2fi
o.~
9.5R
-1. 3n
12.3R
5.2R
9.7R
I
II
III
-1. 71;
-G.3
11.5n
o.I,r<
8.5R
Il.0R
11. 6R
IV
13.4R
9.5R
5.0R
3.2P
IS.2R
13.2P
6.7P
AlltlUAl
7.7P
12.2P
!I.3P
1975
0.3rt
-1I.9R
-4.6
-5.2
:J.2i1
-4.3
4.41'
-1. 2R
2.7P
9.SR
8.4R
-1.7P
7. P. P
-0.31<
0.5P
1. 31'
-2.5P
-3.7"
9.!P
-O.!P
SEE FOOTIIOnS FOLLO\HIIG TAIllES44
R-REVI5EO
P-PREL 11411!Af(Y
-0.5
I
II
III
O.lR
1u.OR
a.lik
JANVAny 27, 197~ '
SOUliCE: BUREAu OF LABOH STAT 1ST I CS
T:\ i"I.. r
1I;.1l:H Vi r.LI
~.
1'1.1'.'/'.1'1. IIG'f"-,I.;, tC (l I'('I .Y,AI.I. I'Er:SOi ,:'; :Phulil,rTIVITY
nIl, HII T ('nST, M'~ PI! leI'S, 5rll$01lAI I. Y Aihll:;Tf,l>
FP!~.'·TI
1;r.A.1
Y1::1\11 AlW
4liAflTt:R
d UI :i:t;
UlJTPI.. T PEl :
iilllJr:
OF All. PEn:;OIlS
cF J\.LL
PI : IlS~"S
COI 'Pft!SATIm! PEl;
liGL·H (l)
C(WPEIISATIOII PI::ll
IlrLI ~ ( 2)
lItllT
I.AIlOn
CU:';T~
UN I T ~ION
LAIlOR . PAY/.iENTS (3)
1t,·pLI C IT
Pklt:l::
DI::FLATOR(4)
INnEXES 19L7-JUU
1!l75
123. !JH
nL~
157. 1)1{
Jlv.~R
IH . [)ll
11 L . 2
1lll . 51;
!llS . 9H
] 70 . 2R
111. Ok
141. !lR
147 . 21<
l1ii. &k
1 S ~ . 21,
122 . !lR
12S . !lR
13U . :Sll
13\1.6R
144.0R
llU.1;1l
157 . 61l
133 . 6R
14ti.1i1l
110. !JR
11;9 . 71i
1B.,~IH
110.7H
17ti . 8R
1bl. 51<
1bl. 01<
ltoO.811
18 3. 31'
llL!.9h
llU.9k
nu. UP
178. 5 P
llv. 7 P
IV
llO.71<
lU9 . 71t
lU9 . vli
lULO H
n2 . 211
11'1 . 11:
1111. ~
AtlrHJAl
1v!J . sn
] U . Or:
111. 5
I
II
III
IV
107 .. 71i
1u9 . en
115 .. 511
lu7.2
1110 . 711
1u(j.~
112 . 31:
11 2. 21'
120 . 011
111li . U
1r.il . 6H
lll.ep
IUIl . 5P
AlWliAl
11U . 5P
lU . 5p
lU7.21'
974
11<. ,
1:; 4.711
'141. SR
138 . "1(
1II2 . 7R
l!>2. SR
1!>4 . 1R
1511.4R
Ib3.3P
1"9 . 3H
152 . 0P
lbl. til'
145 . SP
12 . 311
15 . 91l
1. 7R
8.5R
13. SR
15.2 fl
B.Zt<
IS!.! .OP
15:;.SP
PFHCI:IIT Cn/lflrE FHGI, PHEV I OlJ~ UUAhTEH AT A/'tIL t\ l fUlTE (5)
-3.ll t
1974
-3.ti R
-1.6
R.8R
-3.1k
1.0
0.41{
-2.711
-O . :S
-(; . 1
11. 8k
11. f. H
lO.71l
-2.""
-3. HH
-~.71l
ANNUAL
-2. "I ~
-2. J I!
I
-0 . 9 R
-lU.!!!!
"
g.OI<
III
IV
1975
-1;.7It
-2. tilt
III
IV
9. "It
-0.31'
-11.7It
4.411
11. 71!
6.21'
AtWLAl
O. \II'
-'l.9P
l2 . 21l
III
IV
0.2R
-D . 71t
3.5R
6.' P
-0 . 61'
G. 5P
19.5R
7.6P
6.2R
G. 9P
-3 . 1l P
n.9P
-0.21'
S . OP
13 . 6P
OF pnEVIOLS YEAIH6)
10.71l
-l.OR
-1. 311
13.411
14. "I!
-2., I; Ii
-2.1n
u.>;
9.SH
-1. 31(
-2 •. 71<
0 . 1h
-u . 8H
-4.2
-5.2
-1'.7
10 . eR
- 5. H
-0.3R
-0 . 111
O. lR
AIHlLAl
SEE FOliTliliTE:i FHlU\lIl1b T Aul c 4.
i, ·llEVISEiJ
P.. I'I<ElII;II'Jill'V
QLA!~TER
-2.511
-S.Olc
4 . UP
-1.Il R
2. 3P
-2. !IP
11. \lR
6. li p
11. :511
3. 0R
iil.lR
12.9R
-1. 'JR
-J . 1R
AUNLAl
6.2R
15."R
7.r-1t
-3 . 21(
13.41(
10 .. 1 R
-1.11<
8.
9.~R
.1f!
-0 . !lI t
-I)
n
D. 8 k
1.1R
'l.ll!
r.. Rk
1.8
-1 .I.:H
-2 . n
1l.1R
10 ...
711
-3."
2 . 11l
0. ' 1
11.2
-1. e
- L ')I !
II
III
IV
1975
14 . 31<
15 . 0f(
0.3
PFI1CFIJT CHAtJrT FIHlI··, Cvr:r.£SPOtJrllIJG
1!l7 :;
-0. '11<
-1. 71<
lo ... n
!l.5k
II. RR
-1. (;P
7.7P
-3. 1: 1'
r,. \I P
9.!)H
1. 9R
6.0R
8.0R
11. 5R
'.I.lR
1~.5R
12.21:
b.2R
10.1R
n.el!
12.-SR
12.4R
7.0R
9.5R
"I'
5.SI{
1If.5R
13."R
lO."R
8.7fl
3.61'
13.8P
7.1P
"0 . 21'
P.OP
H.6P
9.9P
O.
9.1.1(
27, 1!J76
sOt,fleE: (\1,JlFALJ OF
JA~UARY
IIl' OIl STUI STI
c~
rAI; LE 3
':'IH;F~CTIJRIIU~
OMPFNSATION.
VI:
.,,<
Aim
~l.i.l<T EI,
OUT!>!;T PEIl
ti!}'JI< OF
AI.L .l'EHSOIIS
OUTPUT
SF.CTOR: OliTPUT PER HOlR OF All PERSONS, IIOURLV
LAcon CO~TS, S[ASONALLV ADJUSTED
li~IT
HOUt5
CCVPFIISATIOII PEIl
IIOI ,R OF ALL
PFRSt')flS(I)
ilEAL COMPENSATION
PER ti(llJR OF ALL
PERSONS(2)
UN I T LABOR
COST
I jJUEXES 19C.7-1l10
1~74
101'7.4
I
III
IV
illjill'AI
II
III
IV
illWlJAl
129.4
129.2
128.9
129.2
125.7
121>.5
129.2;'
131.0P
1£8.0P
103.<)
1.32.3
132.9
132.1l
127.8
102.7
102.8
99.2
102.0
131. 8
] 1Ii. 2
115 . 1
119.5R
123.5P
118.5 P
~i..
!.t
91. 0
'12.5
94.3P
92. UP
153.0
158.9
lG3.1
}(is. 4
IG1.1
173.2
177.0
IS0.2H
I
II
III
- 3.2
6.5
IV
- 1. 0
U.7
-
"imliAL
O.U
975
- 9. (,
IV
AI~IHJAl
2.8
8.6R
5.(jP
- 0.9P
- 5.8
1.8
- 0.3
-14.2
- O.ll
-13.3
- 1. 3
-31. 7
-24.4
- 3.7
lIi.2R
]4.1P
- 10.0P
I
0, 5
1. 8
II
1. 1
0 .5
- O.S
II I
IV
AI Nli,.L
l!o 7 5
I
II
I II
IV
AIW UA l
S~€
"
- 0.1
0. 4
0. 7
- 1. 4
- ?. 2
!J ,Ok
l.uP
- 0.9 P
110.6P
110. liP
17&.4P
- 6.3
7.0R
1i.0P
11.8
9.2
7.5R
6.3P
- 9.2P
10.8P
1. 3
- 0.7
- 0. 5
l3u.7
124.6
137.8
139.9
139. Sf<
139.8P
139.3P
7.9
9.1
- 7.1
4.5
- 1. 3
11.5
· 1.1
- 1. 4
15.0
8. 6
3.5
3.0
- 0.9
- 0.4P
1. 5P
23.6
1i.2
- 1. OR
0.7P
1l.8P
PRE YI OUS YE AR (5 )
7.1
9. 2
10. 0
11 . 3
- 2.6
- 1. 3
- 1. 2
9.4
- 1. 4
1.5
- 5. 2
- O.G
- 1.
- 12 . 2
-13 .4
- 11 . 0
-11 .4
13 . 1
11. I;
- I O. OR
- ;; . P
- lO ,O P
-1 0 . 0
- " . 9P
10 . 5R
- 9 . 2P
120 . 1
122.8
121i.2
ER AT AIIIILAL RATE (5)
- 11 . 8
FVUilOTES FO L lOhl UG TABLE
I, EV I SF li
P = PIH, l ll·· I"ARV
f(
110.7
- 2.7
- 4.4
0.3
pell CWT CHAHG E FROI'
19 74
110.1
111. 0
183.0P
PERCF.ln Cit AIJm, FROI·; PREVI
1974
108.1
109.3
108.9
109.2
109.0
&.7 P
10.SP
~
O. S
}.9
1. GR
1. 3 P
1. 5 p
6.5
7. 9
10.1
10. 9
8. 6
14.7
13 . 9
10 . 6R
7.0P
11. 8P
501 .r. r. E : BUREAU OF LABOR STAT! ST I CS
.IAIH,ARY 27, 197&
Til l·L F 4, rWllF IliAIJ(~ I AI cuI< POI:AT lOllS: PHO[)UCT I VI TY I HOURLY COMPENSATION
utilT ll\liOH CU:iTS, \.JiJlT PIWr.ITS AlHl PflICES, SEASONALLY ADJuSTED
YT:,~ i;---'-'0~-------'----iiO'GiiLY--'
PElt ALl-
:.iH
~L.\'('tl:1l
Ul,TPI .. T
rll1l,I;S
FI ,PI. (lY EE ~
"Oult
----~ , ---- --
Hl7~
lL l
l a o'
I
COhPI::N-
COSTS
(1)
SI\T lOll( 2)
nU.711
1%.~
110,5
132.6
H I. 2-
1UL U
136.4
140.4
109.8
134.5H
137.9
142.3H
144.8
148.1R
110.3R
138.4
1110 . 6H
147.5
14ti.3
144.6
159.4H
i29 .
... ull. 7ft
Il 7.7
121. !-!.
1. ' 1. b
1 U'3. ~
l O.... 1l
173. ti
1I0.41!
177.3
111. 2
110.IlR
1~7S
_
~l l
II
(J
12:i. ~
1 :l ~ • 31 ~
COSTS(8)
TOTAL
UNIT
COSTS
UNIT
PROFITS
(9)
(10 )
IMPLICIT
PHICE
DEFLATOR
INDEXES 1967-100
11 7 . 7
AI tH.lI. L
II I
T I 011
NONLABOR
JU'f .IJit
117 ...
1l'l. 1)
I
UNIT
LAI3NI
1 ~L . 0
I, V
II
3 I) • .
129. !j,
LotllT
Iii 1. 1
1l>5.1
It9.3
1!i3.0
II
11 1
;._,U, b
REAL
HOURLY
COLPEIIS(,-
11.1,1
IU1 . L
180.41(
llU.3
157.3R
158.0H
133.0
13b.7
140.9
145.6R
139.0
90.9
90.6
88.8
89.2
126.0
129.8
133.3
137.0
131. 5
149.9R
149.SH
147.9R
87.3
97.9
Uti.1R
141. 7H
143.1
86.8
140.5
,
P[HCEtiT CIIAUGE FHOI. PI<EVIOUS QUARTER AT ANNUAL RATE (5)
1974
I
II
III
IV
ANNIiAL
- 7.0
0.3
- 2.0
- 2.0
- 2.3
1975
2.4
I
II
- 8.1
- 1. 4
- 1. 2
- 1. 7
12.3
- 0.1
6.1l
- 2.1
-10.2
- 2.5
- &.4
lli. :>,
lli.C
- 0.1
Il. 7
-13.9
-15.9
10.5
u.4
12.5
17.111
12.4
- 5.4
II. :lH
- 5.0
1.0
- 1.8
- 1. 7
- 2.0
2.3
2.7
1i.8
7. 11<
-
1. 3R
14.9
14.8R
11.9
10.7R
12.5
12.Y
11. 3
7.9
- 3.2
- 4.71\
PERCENT CHA~GE FROM PREVIOUS
1974
I
"I"
IV
ANtli.;AL
1975
I
"
III
- 1. !I
- 2.1
- 2.7
- 2.7
- 2. j
- 0.3
2.(;
6.1
-
0.1
1.6
2.6
5.S
2.5
- 7.0
- 5.3
-
O. Yi{
-
- 0.1
7.1
8.5
9.3
10.0
8.7
- 6.7
- 7.6
- 6.6R
lU.9
lU . 1
9.3
1.!l
0.5
0.1
- :l.U
SEE FUOT/JOTES FOlLO\;IIiG TADLE 4.
P .. I'I:EL I I·d
I< " HEVI!)El>
ilAIIY
2. ti
1. 9
1. !I
1. U
13.2R
t.
14.YR
11. tiR
12.7H
17.4R
10.1R
14.0R
11. 0
27.31\
5.4R
12.5 R
- 1.1
- 4.4R
- 3. 5R
-12.3
20.2
- 1. 0
- 7. 7
- 1. 7
11. 6R
12.5R
11. 2R
11. 6R
9.5R
- 6.8
10.5R
3.7
3.9
58.3
98.0R
YEAR
9.2
10.8
12.3
7.1R
8.6R
- 2.0
13.0
11. .3
10.81<
14 . 01<
10.lR
- 0.1
0.3
0.5
11.3
7.3
3.0
17. OR
15.6R
11.0R
SOVlllE:
8.7R
10.2
11. 9R
- 5.6
7.0R
- 0.5
0.4
13.3R
11. 0
- 1. 7
9.0
10.61!
11. 7
9.5R
12.7R
0.6
9.4
5.0
7.7
11. 4R
9.2
28.1R
7.3
- 0.9
I:llil ! EAU OF LAuOR STATISTICS
JANUI\RY 27, 1976
FOOTNOTES,
SOURCE:
Department of
and Man-hours
ment of Labor
TABLES 1 TO 4
Output data from the Bureau of Economic Analysis, U.S.
Commerce and the Federal Reserve Board. Compensation
data from the Bureau of Labor Statistics, U. S. Departand the Bureau of Economic Analysis.
(1) Wages and salaries of employees plus employers' contributions
for social insurance and private benefit plans. Except for nonfinancial
corporations, where there are no self-employed, data also includes an
estimate of wages, salaries and supplemental payments for the self-employed.
(2) Compensation per man-hour adjusted for changes in the Consumer
Price Index.
(3) Nonlabor payments include profits, depreciation, interest, rental
income and indirect taxes.
(4)
product.
Current dollar gross product divided by constant dollar gross
(5) Percent change compounded at annual rate from 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 costs include depreciation, interest and indirect
(9)
Total unit costs is the sum of labor and nonlabor cost.
taxes
(10) Unit profits include corporate profits and inventory valuatior.
adjustment.
(
CHART 1. PRODUCTIVITY. HOURLY
COMPENSATION. UNIT COSTS AND PRICES
.
TOTAL PRIVATE ECONOMY
(PERCENT CHANGE FROM PRECEDING
QUARTER AT ANNUAL RATE)
I
IV
I
1
OUTPUT PER HOUR OF ALL PERSONS
I
J
f
I
I
I
I
I
I
I
I
1
I
I
I
l
.
1.0
I
10
-------------+-------- ----~I
• -. ------------~
I - ------------.-------------~-------------~-------I
I
J
-------------T------- - --,
I
I
I
I
I
•
I
•
I
•
•
1
I
-- --r--
I
•
I
I
5
-----------,-------------~----
I
•
I
I
'
I
•
I
I
I
I
I
o
I
·:
•
I
•
I
I
I
I
I
-------------~-------------~--------------~-I
•
I
- --------- - ~-------------~I
•
.
.
COMPENSATION
•
:
I
I
I
.
HOUR OF
I
PER
I
I
----------~------------I
.
PERSONS
•
ALL
I
IV
I
I
I
I
I
I
l
r-----~__
15
7.5
I
I
-------------~-------------~--------------~
I
I
I -
-5
I
I
I
15
10
l
r
I
5
o
UNIT LABOR COST
I
I
I
I
IV
-------------T-- ----------- ~-------------~------------T----I
I
I
I
I
I
I
I
I
I
I
I
6.5
,-------------,I
I
I
I
I
,
I
I
I
I
I
o
I
I
I
I
I
I
I
20
I
PAYMENTS
I
;
I
I
I
:
t
15
-------------~-------------1------------ - -r-------------t-------------~-------------ii-----
it
•
,
I
•
I
•
t
•
•
I
•
•
•
•
I
I
I
I
I
I
____________ _
~-------------
I
I
10
I
5
I
:
1
I
•
:
J
•
----~-I
I
:
•
I
_ _________ ~-------------~-------------~---------
I
:
,
__
--------~----I
I
~
I
•
I
- -----------t---
I
I
•
:
I
.
I
o
I
•
I
!
•
:
I
:
•
•
--------- --- -~-------------~--------------~---- ---------·-------------1-------------ji------ -------
:
I
,
:
:
:
:
:
:
I
:
:
:
I
I
:
:
l
IMPLICIT PRICE DEFLATOR
I
I
.
:
I
-5
I
IV
6.3
I
_____________ ~-------------~--------------r-------------~-------------;--:
:
:
:
:
:
:
:
,...!':":=~_i'.......__.....:.
10
5
----------- - i-------------~-I
I
I
I
I
15
15
10
5
------J..-------------:
I
I
o
I
1969
1970
1971
1972
1973
1974
1975
JAN 27. 1976
CHART 2. PRODUCTIVITY. HOURLY
COMPENSATION. UNIT COSTS AND PRICES
. PRIVATE NONFARM SECTOR
(PERCENT CHANGE FROM PRECEDING
QUARTER AT ANNUAL RATE)
,
HOUR OF ALL PERSONS
1
1
1
1
10
:
1
1
1
I
-------------+------- -
1
I
I
I
I
1
I
I
I
1
5
~-------------~-------------~--I
1
1
1
--__- ,
1
1
1
0
I
I
I
I
I
I
t
I
I
•I
••
,•
I.
••
••
-------------t----------- -~------------ -~------------ t-------------i-- ----------~---- - -------•
I
I
I
I
•
:
COMPENSATION PE R HOUR OF ALL PERSONS
I
I
•
• •
I
I
t
1
I
I
I
1
,
I
-- ---... -
1
1
I
1
I
I
I
1
1
1
1
1
I
I
1
1
I
- - - --- r-------------1
I
1 - ------------~------------1
1
1
I
I
I
I
I
UNIT LABOR COST
•
I
I
I
I
•
I
I
I
•
I
I
•
I
I
•
I
I
•
•
t
I
I
I
I
I
I
I
I
"
1
1
-------------t---
I
I
I
I
:
IV
I
6.5
,.,t.--------------
-------------+-------------~--------------~-------------.-------------~---I
I
J
I
•
I
-------------T-------------,--------------r-------------r----I
I
I
I
I
I
-,-------------~I
.
I
I
I
I
I
I
I
1
I
I
1
1
I
I
1
1
15
10
5
------------1-------------~--I
I
1
5
0
20
I
I
I
•
•
I
10
I
1
1
----------T-----
6.1
•
I
-------------+-------------~-------- -----~----.~ -------~
I
1
I
1
IV
:
-5
15
0
20
15
10
5
0
1
I
1
1
•
I
I
I
I
•
I
I
I
I
I
I
I
•
•
I
I
I
t
I
I
I
I
I
I
_,
I
I
------- ------~ -------------~---- ~ ----- ----~------------ -~---~- ----- - - - ~-------- -----~----------- - ~
:I
:I
!I
:I
:t
I
I
I
-------------..1 ---------- I I1PL I CIT PR I CE OEF LAT OR
:
•
I
I
I
I•
I
•I
I
II
II
I
1
--- -- ----~----1
I
IV
6.9
------7-------------
1
I
I
~'
-
t
1
15
10
-------------~-------------~--------------~-------------~----~--------~--
__--=. . . .....-
-5
20
1
5
- - ----~-------------}---'="'-I
0
1969
(
1970
1971
1972
1973
1974
1975
JAN 27. 1976
CHART 3.
PRODUCTIVITY. HOURLY
COMP,ENSATION. UNIT COSTS AND PRICES
NONFINANCIAL CORPORATIONS
(PERCENT CHANGE FROM SAME
QUARTER A YEAR AGO)
I
I
I
I
I
I
I
I
15
OUTPUT PER ALL-EMPLOYEE HOUR
I
I
I
I
I
I
•
!
I
I
I
III
I
,
I
I
•
,
I
,
,
I
I
•
6.1
•
I
I
I
I
J
I
I
I
I
I
I
I
-------------T-------------,------ -------r-------- -- --T-------------,-------------~------------J
,
I
•
I
•
5
-------------i-------------~-------------------------~-------------1r------I
I
t
.
I
I
I
I
I
I
I
I
I
t
I
I
.
0
I
I
-------------~-------- ----~--------------r
I
I
I - ------------~-------------,-------------~------------I
~
I
I
t
J
I
I
I
I
I
I
1
:
I
I
I
I
I
I
f
I
I
,
.
•
I
I
I
COMPENSATION PER ALL-EMPLOYEE HOUR
•
I
I
I
I
-----"-__
I
I
I
I
I
I
III
9.3
:
,
-------------~-------------1--------------~-------------~-------------;----------•
•
I
I
•
I
I
:
I
•
I
I
I
•
I
I
I
.
I
I
I
III
I
:
3.0
UNIT LABOR COST
I
•
I
I
----.------------I
I
I
I
I
I
I
I
I
I
I
I
I
5
--------------~-------------.--------I
I
I
I
,
15
10
-------------t-------------~--------------r-------------.-------------I~-I
I
I
I
I
I
5
0
,
I
I
-5
15
10
I
-------------~-------------~--------------~------------~-------------~-------------1t------------I
•
I
I
I
10
I
I
0
I
I
I
I
15
I
I
I
I
UNIT NONLABOR PAYMENTS
-------------~-------------~--------------~--- ----------~-------------,-------------
!
l
ill
..
I
,
I
I
I
I
I
I
~!~4
-------------t------------- ------------- -------------t-------------i---- -------i-------------I
I
I
•
•
t
0
I
I
I
-------------~-------------~--------------r-------------~-------------~-------------~-------------
::
!
::
,
.
::
::
::
IMPLICIT
PRICE OEFLATOR
r
:
I
I
I
I
:
:
:
,
I
:
:
:
t
I
I
I
!
I
I
I
I
III
7.3
I
-------------+---------I
_ _ _- - :
•
: -------------~-------------~------------ -----~-------li------------I
-5
15
10
-----~-------~-------------~--------------~-- -----------~-------------1-------
:
5
I
I
I
I
~
10
5
I
:
0
1969
(
1970
1971
1972
1973
1974
1975
JAN 27. 1976
CHART 4.
UNIT. COSTS. UNIT PROFITS. AND PRICES
NONFINANCIAL CORPORATIONS
(PERCENT CHANGE FROM SAME
QUARTER A YEAR AGO)
I
.I I I
I
I
UNIT LABOR COST
I
,"
I
I
•
I
II
I
I
I
t
I
I
I
I
I
I
I
II
3.0
-------------t------- ~ -----~-- ------ - -----~-------- - ----t--- - ---------i-- - ---~----- - - ---I
II
10
I
5
--------------~---------- --~-------I
I
I
I
I
I
I
I
I
I
.
I
I
I
I
•
I
I
I
•
11 .0
I
UNIT NON LABOR COST
•
III
I
I
I
•
:
f
I
----------- - -~
I
•
I
I
-----~------------
10
--- - --------~----------- - -
5
I
•
,
- - -----------~------------ ~-------------~------
I
I
I
I
•
.
f
•
,
I
I
•
I
•
•
•
•
I
I
I
-------~-------- - -- -1----,
I
I
I
I
I
•
------~-------------~
•
I - ------------
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
•
I
I
I
I
III
I
5.0
I
I
I
I
:
TOTAL UNIT COST:
I
,
I
I
:
I
I
I
I
I
10
I
I
I
I
I
I
I
,
I
5
0
20
I
I
I
I
I
I
I
I
,
I
I
I
I
I
I
I
t-------------~-------------~
- ---I
I
I
-------------~-------------~---------,
I
,
I
I
I
I
I
I
I
I
I
I
I
I
I
I
II
I
I
I"
I
I
I
I
I
I
I
I
I
I
I
I
I
I
,
,
I
I
,
,
15
I
I _________ _
____________ IL _____________ L
------~--,I - ---------
0
I
----- - -------~-------- ----,--------------r-------------~-------------~---I
I
I
I
I
I
0
20
15
---------- - --t-------------~--------------~-------------t-------------i------ -----I
I
I
I
•
I
•
I
15
•
I
.
I
10
5
------------~-------------+------I
I -----~-------------~~
f f
I
•
•
I
I
•
I
I
I
15
I
I
I
PROFITS ______~I------~~'--,_~~:L-----~
,
0
I
I
-----------:-------------I
-5
I
I
I
:
:
:
:
:
I
I
:
I
:
:
:
I
:
•
I
•
•
I
:
:
•
:
:
:
:
:
:
:
---~--------------~-------------~-------------~---.
I
I
:
:
:
I
I
I
J
:
I
I
_____________ l ________ _____ J______________
1969
1970
:
1971
I
:L
_____
~-----
1972
__
._-----ij-------------
:
:
:
I
I
: •
:
L
I _____________ I
~
1973
-10
I
_____________
:
I
I
~
-15
-20
____________ _
1974
1975
JAN 27. 1976
-25
@FedFRASER