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NEWS
)!" U. S. DEPARTMENT OF LABOR
~
lIuolng<on, D.C. 20212
L.J.
~lco
(202)
Ms . K.D.
H~yl- ..
(;W2) 961-2913
H~~
(l02) 331-13S4
~r.
IUREId Of LAlOi STlIISIIC!
II:DL 14-410
FO~ l\ELEME : 11:00 .1..11.
961 - 4S~1
~ edn~.da y,
July 31, 1974
PRODUCTIVITY AIID COSTS IN TH~ PRIYAn ECONO)f'{, SBCOl<D QUARTER lH4
( a nd Revlud D,c. for Nonfinancial Corpoution>, fine Quarter 1974)
I'ro4ucthlty in the priu, • • cQn""'~ i~"r .... d o11ghtly in tho ucond qu ~nu of
U.S . ~part,.~"t of !.obor ."nounco<! ,oda y.
a ,m-hour) came ah .. four con. . cuti n
Th~
rho 1n productivity (OUtput por
qt1;lrun of
~ool1ne
Qr of no lO<o"th.
Th.
incu. .. hi BTU q~arter vro~ucH"1ty <.. ",H.d hom. rdoHv81y large dodi" . 1n
of 1914. producUvity f.ll 7.1
publi.h~d
by tho lu.n", of
p~rou,.
~cQno .. ic
Andy.to (nA) of the U.S. Depart.,er.t of Co""",,,oo .
In the nonfarm .ector. OUtput per "..,,-hour doc!1!, o<i ~t n
annu al rou of 2.9
man-houro It"'" the first qu ... tor ( •• asonally adjusted at on annual Uto).
I" mnufocturing.
output ~u lUn-hour incr .... d 4.6 puc.nt in tho socond quuur
.toor decr. ul ~g 0.1 percoM In tho UUt quartor.
Thlo .. flocted a \.5 pucont
Incro .. e in OUtput comblnod with 0 2.~ perc e nt declin e i~ lUn - hours.
Frc= the second quarter of 1973 to the .econd quart a r of 1974, output pe r .an-hour
f e ll 2.0 percent in tha priva t a sector, 2.2 percent in the nonf ar. aector, and ros e
Table A.
Percent Change a t Annual Rata in Productivity and COSts
(Sea. onally Adjuste d)
1s t Quarter 1974
to
2nd Quarter 1974
2nd Quarte r 197)
to
2nd Quarter 1974
0.0
-z.O
,.,
Output per .an-hour
Conpen.atlon pe r .an-hour
Uni t labor coSta
V~~l c~pen.ation pe r man-hour
Outr u ,
13.8
13.0
U
-1.5
10.8
-2.0
Ihn-h~un
-2.3
0 .•
"~n-hour
-2.9
c.,."p,,"ution p ....an-bour
Unit labor co . t .
&..1 compens.tion pe r . .n-hour
Ou t put
Man-houu
-2 . 2
10.2
13.6
-2.0
-2.3
-2.0
-1.6
0. '
0 .•
•••
L'
..,
Output pu
u.n"hour
per ~ n-hou r
U=it l ~bcr coat.
~al ~~p en . &tlon pe r .an-hour
Ot!qut
('utp''>!
~cr
C~~r.~~ct!o ~
M&n-houro
13.9
'.0
-1.4
..,
11.0
,..
U
U
-1. 3
-2.9
-0.9
0.'
Tb.
inc~u . .
quo .. n
~rivat . . . eto r
in OU'Fu, pot .on-hour in tbo
du,lnl th .. ,ond
v . . a . nult of lUI" do,11" . . In ...n-hours tban In ""'pu. -- 2.3 pueent
.1 Iiolost 1.5 "".e.n.; benco p.oductivity "ovod up .11IMl, (o.a percln.).
Tho
dlcli"o I~ ~-bouro rolloctad ~~vlrd .OVocon.1 10 botb . . ploy.ont (1.3 p•• ,on.)
and IVUlal ""'01<.17 h"",u (1.0 poreu.) tn tho •• cODd qua.te ••
10 .h. ""nfano '.o;or, .b. 4.,11". In ou'l">t por ...n - hour (2.9 "" .. Int) occurrod
beeau ••
~o,~ ~loy.eot
and .an- hour. ro.o (O.7 porcent on4 0.6 po.c'ot, .I,plctlvely)
and outpu, d.cl.!n.d (2.3 puc.n.).
Pro~uc'lvlty
''''Or bocluse of • bI,h .... of p.oductivlty
100: . . . .4 In tho
JrO'~th
.oul prlv...
In .b. volull. to ... lector.
In ... nufocturlns, outpu. por un-h""r <au (4.6 ?O«.M) .In,. ~u.pu' roo.
(up 1.3 porc,".• ) ond
f~"," ...... 11
"'''-ho~ro
toll (2.9 p.... n.).
Tho dodln. In aon-houu
~~.u1tO<i
Incu ... 1n _pl~nt (0.1 ponent) c=binod >11th I l.O porOI'" <ICU".
In Ivua,1 "uk!1 b"" ....
Co..enSOtiOD par ~ -bou. (which rolllc"
~liO
co •• o, .pI011' Soo111 Slcurlty
contr1buU",,", on<! oth.r frln,. b.nofito) .ooe D . 8 ",,<eent In .h. p.1v.. 1 OCO""*1
durin, thl u<ond qUIttor, o"., ... d .. itb 0 6.4 puc.n. ineu... In .hl pucodln.
quar.u.
Thio b . . . . . . in "",,"plne .. lon (tho
lo"...
quor ... 1y Inc ..... linco thO
U ... q".<tI~ of 19"), oaablnld .,1th ,h. 0.8 ~uc'""t d .. In outru. po< lI.n-bou~,
... lu1 •• d In I !J.O pote.M Ine ..... 10 ,,"it labor cost. .
RId cOlOp.nlO.lon PI'
..,,-hou. (e~on •• tloD pI. ,,"n-hour adjusted by t~1 Conluao. 'rl01 lod •• ) .01.
1.2 Pltc.", 4u<lo. tM 1I0""d qOI< . . . . . hl Unt in......
.ho fin.
q,,~~tI.
of 1913.
I~
.hli ..... 0 •• .toco
In the gonfera sector, compenaation per man- hour ro.e 10 . 2 percent and output
per !Un-hour fell 2.9 percent, and this was ufhcted in the 13 . 6 percent incuue
in uDit lebor coata.
&.al compensation per man-hour declined 2.0 percent during the
•• cond quarter, marking the fifth consecutive quarter of decline for this measur • •
In maDufacturing, compen •• tion per man-hour incr •• sed 13.9 percent, reflectIng a
10.6 percent rise in total COlopenution and a 2.9 PQrcent decline in un-hours.
Thh
was the large.t inc r ease in compensetien per man-hour s ince the fourth quarter of
1950 .
Unit labo r coot. roSe 9.0 percent 1n the .econd quarter while re&l compen.etion
per mAn-hour increased 1.3 percent.
The incr •••• in r.al compens.tion followed four
con •• cutive querters of decline.
IlEVISED FIGURES FOil NONFINANCIAL CORPOIlATI0l!S
&evi s@d output per man-hour end related me.sur.s in nonfinenci el corporetione
for the first qU.rtH of
197~
the ODe-quarter r eviaions tn
_re aloe rel ..... d todey .
~n-hour.
en d employment e. _11 as output revisions
prior to the founh quaner of 197) published by th" BU.
EFFECTS Of DATA
revi8ions
~~1 ~~?ens~tion ~ ... ur ..
of
See table 4.
IlEVlSI~~S
Th~ 8t~tl.tical
n.part~.nt
Theee new meuurea rdleet
~.rce.
pr~sent ed
in this r.lea•• ere ba.ed on revised output
publlahed by the Bur.eu of Econocic Analyai., U.S.
In the private economy, downwerd revision. in the rate of
gr"""" of OI'tput In .td·1973 res"lted in a dedine in output per ..... n-hour frOll the
second to the thi rd quarter (-1.5 pe roent .t an .noual rate) r ather than th ft increa ••
of 0.4 !>e reent reported url1er) .
d~~rd
revi.ion of
t~e
Lik .... ise, for the first quarter of 1974. the
reviled output mea.ure
~a.
a.cline 'n output per _3D-hour ( .. t an annual rete)
~1
• 6 . 4 percent decline .
reflected in the 7.1 percent
~hlch
hed p r evious ly heen reported
In
~ha
noda= ..etor ,
o u tpu~
1o"H 1n the nv1ud figur n
1n tha ucond an d thi r d <!uan.u of 191J " ... a ho
than had previously been nI'Qrte.d , and this contributed
to the reduction 1n the uu of gro"th of productivity 1n th .. ucond quarter fr"""
-0 . 8 to - 2 .2
~nc.nt .
Fr"", the fourth quarter of 1973 to th .. Hut quarter of 1974,
productivity " 88 aho l"" .. r , b .... d on th .. revi ..d seriu {d""n 5 . 2 perc .. nt rather
than 4 .5 perceH} .
Table 1. To,.1 Private Econo.y: Output pa r HaD-hour , Kou r ly
Co.pen oation, Unit eo.t , an d P.lc •• , Seasonal ly Ad just.d
Yur and
Quart u
,
Output por
Ha n-hour
C"",,,enu-
Output
Han-huur .
"00
lteal eo.penuU<>n per
l.pUei t
Price
Unit
I.abor
lInh NOD-
12 •• 8
121 . 1
129.8r
U2 .Sr
128 .6 r
Labo .
197)
U
m
"
,
Annual AVII '
1974
"
,
1l7.0r
116.6.
116.1 r
1l6 . 1r
116 . 5.
12•. 'I .
125.6.
126. 1
126.8.
125. 8.
106.7
101.7
108.6
109.2
108.0
U9.9.
IS2.1r
I S4 . 2r
lSi . 3.
153.5
116.Sr
115 . 7.
1l4 . 7r
11 4.4.
llS . 3r
128.l r
132.8 r
13S . S.
lJl. Sr
119.Sr
121.8r
125.0r
127 . 8<
123. 5<
114.0
U4 . 2p
124.2r
123.7p
109 . 0
108.4p
159 . 8r
165.lp
H).O.
Ill . 4p
\ 40 . 2.
144 . 6p
HO.9.
131. 9p
136.6.
139.6p
6 .0.
7 . 6r
8 . 7r
8 . 7r
PaU.n. Change Ove. Previous Qua rt er at ..... nual hr. (5)
197)
U
m
"
,
Annual AvS'
1974
"
,
'"""
,
"
,•
••
6.5 .
-1.6 .
-1. 5.
-D . O.
10.Or
2.1.
1.6.
2.3r
2 . 9.
-7 . 1.
0 . 8p
~.
p r el1.1n a ry
U
U
.. ,
-7.Sr
-I. Sp
-0. ,
-2. Jp
5.30
l.5 r
2.1.
O. Sr
2 . 9r
8.6r
6.Sr
5.5.
4 .0.
..,
-2 . 6 .
-2 . 0p
-O.S.
- 1. 4p
••
,.,
U
'-'
,.,
3. 2
U
0.6 p
,..
n.l<
5.9.
5 . 6.
8.5.
6.9 .
- 2.7r
-1.1 .
- 1. 2r
6.tr
7. )r
8. 4.
5 . 7r
7.7,
1I.lr
9 . 2.
a . o.
l.it
S.Or
7 . 0r
5 .7r
-4 . 5r
1.2p
to . 6r
13.0p
10 . Or
l . lp
12. 9r
9. 2p
5.5r
6.h
7.7r
8. or
7. 0r
1.6.
S.O r
6 . 4r
7 . 7r
9 . S•
a . 3p
9 . S.
9 . 9p
6.4r
U.Sp
Perc,,". Chan,.
footnote. foU .... i ... table
revised
,.,
,.,
,. ,
1913
Annual AvS'
1974
l3O.S .
....
r oniou. Yu . (6)
7.9 r
7.S.
2. 2.
6.0•
I . Or
-0.2
1. 7r
2.4.
4.2 r
5. 1.
1.4r
S.Or
•••
-l. O.
- 2. 0p
9 . 4r
to.Sp
..•••,
S.5p
SOURCE:
) . 7r
Bu r eau of L.oboo StlUnlce
July 31 , 1974
S . 7f
Table "- Private Nonfarm ~cono.y: Output per Han-hour
Hourly Co!o.pensatl on , Unit Co", ,
Prlcu, SURonally Adjusted
'"'
Year "0'
Quorter
Outp"l I'C<
Han-hour
Output
,",- ,,- hour
I J)
1967
J973
n
m
"
,
Mmu~l ~vg.
COIIpensat i en' per
IOan-hour(2)
Co.
Han-hours
Inde",,~
,
Real
CQIOpcnsation
U5.7r
115 . 1<
115.1r114.9r
125.2r
126.0r
126.8<
127.1<
108.2
109.5
110.2
110.7
14B.Or
150. 0r
1I5.2r
126.3<
U3.3,
lI2 . Sp
124.7<
In . 9p
•
Unit
Un!t N~nLabor pay-
r..abor
CoH
..,,,to
"0
'>l
Implicit
P<lce
Deflator
ISS.7r
114.lr
113.4r
ll3.2
127.9
130.3r
132.4<
US.Sr
115.9r
116 . 4r
117.4r
119. 6
123.4r
125.0<
U6.7r
n9.Sr
109.6
1~1.
6
U3.9
1)1.6r
117.]r
126.2r
1I0.0
llO.2p
1.5~.
9r
U2.4r
Ill.8p
140.2r
144.7p
IZ3.6r
12S •.Jp
133.9r
162.8p
-0.9r
1. 7r
J.lr
7.6r
3 . 6r
5 . 6r
5.6r
9 . 0r
11~.Or
1~2.4<
1974
n
Percent Chanse Over
,
1973
n
m
.~.
2r
"
,
Annual AVi;.
19 74
n
,
,."
"
,
Annual Avg .
1974
n
,•
preliml Mry
...... nual h « (5)
- 2.4r
-0 . 8r
M
l.8r
1.4r
5.0<
2.Sr
-2.4
8.4r
10.lp
-2.7r
-2.0p
14.4.
1l.6p
14.0.
16.1p
2.4r
S . ar
7.6r
2.6r
2.).
1.9.
).Or
-O.Or
- 0 . 7r
'"
L'
2 . 7<
6.2r
-5 . 2r
-2 . 9p
-7.5r
-2.3p
0.6p
5.5r
-3.2r
~"nt Chang~
~"' Previous Year (6)
M
l.6r
1.7r
5. 1 r
J . 4r
1.8r
0.5r
8. 7.
6.9r
5.6r
l.ar
2.7r
6.h
,.,
,.'",
,.,
-2.1r
-2.2p
-0.4r
-1.6p
O.6p
fwtnotcs foUo-.rlng tabl" >.
Se"
,.
revise,1
"
6.2r
7 . 8r
6 . 6r
9.7r
U
1971
n
m
Q~aner
11.7r
5.4r
6.6r
a.9r
9.4<
2.5r
2.Sr
l.h
-2.2,
Prev1.",,~
'"
l . 4r
2.lr
".,
'"
'"
~.,
4. I r
7.8r
1.4r
5.0r
2.Sr
7 .Jr
8 . Sp
- 2.3r
-2.0P
9.6r
11.0p
6 . 7r10.2p
SOURCE :
138 . 5p
Bure a u of Labor
July. 31. 1974
Stati8tl~.
U
14 . 2<
14.4p
2.4r
3.Se
'"
S.9<
U
8 . 5r
10.7p
''l
Table 3. I'Ianu(acturing Sector: Output p.. r Man-hour, Hourly
COIIIpcnaatlon, Unit l.abor C<:>StB, Seuonn lly Adjusted
Ye". and
qu"n .. r
,
Output per
..... -hou r
Output (7)
Ma n-houu
C"'pena8tlon per
_n-hour (1)
Re"l Cc.pcn8"tion
per _"-hour (2)
Unlt Labor
Coat
Indues 1967 • 100
1973
n
on
"
""nual Avg.
1974
,
"
,
. "
'""
,
"
Ug.Sr
04.J.
101.1
102.0
102.0
10).2
144.1r
147.4.
150.lr
153.2<
112.5.
1I2.1r
111.8r
111.4r
112.6r
H3.1r
114.5r
1!7.8r
130.0.
132 . 6.
102 . I
148 . 9.
Ill.9r
t14.6.
129.9.
13 1. )p
132.3.
132.8p
101. 9
10l.lp
155 .8.
161.0,
110.2.
1I0.6p
120.0r
122.6p
8.9 •
7.5 •
8.1.
8.0r
2.9.
-l.4r
-0.9r
-1. 7 •
-0.2.
1.4 •
I.h
1.4.
7.0r
13 .9p
-4. l r
7. 8r
1.3p
9 . 0p
2.3.
129.7.
131.2.
130.1.
129.9.
132.lr
133.9r
1973
Mnua! Avg.
9.1.
J.1.
4.9.
-3.4
H.9.
.. ,
7.6r
4.9.
5.9.
1l.0.
-0.7r
4.6p
-5.8.
1.5p
L974
..,
,.,
-0.0
...•••
-5.1
-2.9p
Percent Chanr;e Over Pre .. lo". Year
3.7 r
3.0r
11.9 •
(5)
1973
n
'""
Aunual Avg.
19N
,
"
7. 7.
6.7.
5.7 .
3.5r
12. 2.
10.5.
7. J.
5.9.
11.0.
\,1.
1.8r
0.4p
I, Jp
See footnotes (ollowlnll table 4.
p • prell_lnary
r • revised
U.:r
,..
-O.9p
6.4r
1. 2 r
7.9.
8.1r
1.6.
1 • (j.
-0.3.
-1.2.
0.4 .
2 .0.
4.5.
7.4r
I .I r
I .4 .
7.1r
9.2p
- 2 .0r
- 1.3p
6.5.
7.9 p
SOURCE, Junau of Labor Sla l htlca
July 31, 1'114
Ta!>la 4. Nonfi n ancial Co<poullons: Output pH Mon-Hou r , lioudy Coo>penutJon
Unit ~bor Coot., Unit Profit . a n d Price " Se.,~nal l y Adjusted
- - - - - - - - - - -----,,;;;;;;;;;.:--:::";,.;,-----Output
..
,
'""
'
Manh.;ur
Output
123.1<
123 .3 r
12). ~t
llZ.7r
130 . 7r
132.3<
132.9<
133 .4 <
123.11"
11l.0<
Han- hOUri
per
Unit
Labor
-U~--T~;l-----
Nonlabor
Co.t,
Unit
COlt
Unit
Profit .
l"' plt cH
Prlt.
91.9.
1l7 . S<
119.1<
12(1.h
,-C:':':':____..le'"",-_,'0'"'___ ~~'?t __ .D.~~~ ~<._
197>
n
Annual AVi.
1974
(
1973
101. 1
149. lor
151.8.
110.1<
115 . 4<
121.4r
Ill. I .
107.7
108.7
154.4.
157 2.
114.9 <
IH.l.
114 . 2<
128.1 <
Ill.',
107.5
153 .1<
115.0<
130.6<
107.9.
160 .4r
llJ . h
(
8.2<
n
m
0.7.
0.6.
_ 2. Jr
4.8.
3.7.
7 . St
_ 5. 5.
"
Annual Avg .
1974
(
12 .5 .
2.0r
I. 5<
91.3<
In . 9<
12S . 5 <
90.2<
89.7<
121.7.
IU . l
90 . 8r
134. 2<
133.0<
86 . 8<
126.0.
Pe.cent Ch'!.o ge Ov.< Prevlou . Quane< at_Annul_I.. Rate ( 5)
4.8<
-3.1<
4.0
13.4<
7 . 2<
2.7r
5. 7<
4.3t
4.0
6 . 5.
-2 . 21"
5. ).
1.5
7 . 2r
-1.9.
6.6.
3.Br
5.9r
3.9
7 . 3<
-2.ll"
9.9.
5 . 2r
8. 7 r
J. 4<
2.6<
-2.6<
4 .4 r
4.6.
7.4r
112 . 6 r
125.7<
127.1.
128.)<
129. 9<
_4 . 5<
-2 . 5r
122 . 6
4.7 r
,"
14 . 6< -12.3r
11.4r
'.0
7.9r
I . 5t
4. I.
0.7r
- S .h
- 2.B.
B.5.
_2. 6r
14 . 9<
13.9.
5 . 3<
10. Or
..,
7 . 2r
3.0<
2.0<
-O.h
1.0<
2.2<
9 . 3r
J .H
'"
I.a.
3 .2 <
_l. 2r
8.7<
7.5.
197J
(
122.h
124 . 1<
106 . 2
3.2<
8.0r
8 . 6r
,"
l. I <
4.5r
0.7r
'.5.
4 . 3<
2.8<
3.6.
0 . 2r
6 . 7<
2.5.
5 .6<
_ 1. 6<
4 . 8r
7 .9t
I. 5r
4.1.
0 . 7<
J .2r
4. 7.
3 . 4<
~..:'~~,,~ _:-:(:.:':',-~:-0::;.'("-7..:".'.---,',.:','---........:!.-~-----9.:.:~_r_____ ~_
. "_,
8.6r
n
'""
Annual Av& .
1• 7 r
7 . 6<
5. It
7.8<
1974
See footnot ... at end of t.b l e 4.
r ~ revl$ed
p • pretl,dna ry
'.0
'.0
"
'.0
7.7r
SOURCg,
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Buuau of Labor Statistic.
July 31, In4
YOOT~OTES,
TABLES 1 TO 4
Sour~e: Output data from the Bu.eau of Economic Analysis, U.S.
Department of Co~,erce and the Federal Reserve Board. Compen~atlon
and Man-houu clota fro", the Bu.eau of Labor Statistics, U.S. nepartrr.ent
of Labor and the Bure8U of Economic Analysis.
(1) Wages and salaries of employees plus employers' contributions for
sodal insurance and private benefit plans. Except for nonfinancial
corporotic"s, "'here then, anl no self-employed, data also includes an
estirn"te of wages, salaries and supplemental payrnents for the self-employed.
(2) Compensation per man-hour adjusted ror changes in the Consu,"e.
Price index.
(3) Nonlabor pay ... ents include profits, depredation, interest, rent'll
Income and indirect taxes.
(4) Current dollar gross product diVided by constant dollar gross
product.
(5) Percent change compounded at annual rate from
than index nu~bers.
(6)
o~lginal
data rathe,
Current quaner divided by conparable quart"r a year ago.
(7) Qua,tcrly measures adjusted to annual estimates of output (gross
product originating) rro~ the Bureau of Econo~ic AnalYSiS, U.S . Department
of COlllllleree.
(8) Unit nonlabor cOstS include depreciation, Interest and indirect
ta xes.
(9) TOtal unit COStS 1s the sum of labor and non-labor costs .
(10) Unit profits include corporate profits and inventory valuation
adj us t"",n t •
@FedFRASER