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News
APR 2 2 1988
Bureau of Labor Statistics
United States
Department
of Labor
Washington, D.C. 20212
Historial, technical DEPOSITORY LIBRARY
information:
(202) 523-9261
Current data:
(202) 523-1221 or 1208
Media contact: (202) 523-1913
USDL 86-78
For Release: 10:00 AM EST
"Thursday, February 27, 1986
POSTS
Revised Fourth-Quarter and Annual Data
Business, Nonfarm Business, and Manufacturing
1985 Annual Measures for Nonf inancial
The Bureau of Labor Statistics of the U.S. Department of Labor today
reported revised productivity data—as measured by output per hour of all
persons—for the fourth quarter of 1985 and for the year as a Whole. Based en
more complete information than was available on January 29, the revised
measures of seasonally-adjusted annual rates of productivity change in the
fourth quarter show larger declines in business and nonfartn business and
somev^iat smaller declines in manufacturing:
-3.1
-3.1
-1.0
-1.3
-0.6
percent
percent
percent
percent
percent
in the business sector,
in the nonfarm business sector,
in manufacturing,
in durable goods manufacturing, and
in nondurable goods manufacturing.
Fourth-quarter measures are summarized in table A and appear in detail in
tables 1 through 5. The productivity change in 1985 (as measured by the change
in annual averages) was 0.2 percent in business, -0.2 percent in nonfarm
business, and 2.7 percent in manufacturing.
Preliminary measures announced
today for nonfinancial corporations indicate that productivity declined -0.1
percent in 1985 (tables B, C, and 6).
Business
Productivity declined at a 3.1 percent annual rate during the fourth
quarter of 1985, as output increased 1.1 percent vhile paid hours rose 4.3
percent (seasonally adjusted annual rates). This was the first quarter since
the end of 1984 in which productivity declined and the largest drop since tiie
fourth quarter of 1981, vfaen it declined 5.5 percent (table 1).
Hourly compensation increased at a 3.4 percent annual rate in the fourth
quarter, compared with a 4.2 percent rise during the third quarter. This
measure, which includes wages and salaries, supplements, and employer payments
for employee-benefit plans, grew more rapidly in the previous quarters of
1985.
Unit labor costs, vrfiich reflect charges in hourly compensation and
productivity, increased at a 6.7 percent annual rate, the largest rise since
the third quarter of 1982 vrtien these costs rose 7.2 percent .
Table A. Productivity and costs: Revised fourth quarter 1985 measures
(Seasonally adjusted annual rates)
Sector
Productivity
Output
Hours
Hourly
compensation
Real
hourly
compensation
Unit
labor
costs
REVISED
Percent charge frcm preceding quarter
Business
Nonfarm business
Manufacturing
Durable
Nondurable
-3.1
-3.1
-1.0
-1.3
-0.6
1.1
1.5
2.0
1.5
2.8
4.3
4.7
3.4
3.3
3.0
2.8
3.4
5.1
3.4
0.6
-0.8
-1.0
-0.9
0.8
-3.6
6.7
6.6
4.5
6.5
1.2
Percent change from same quarter a year ago
Business
Nonfarm business
Manufacturing
Durable
Nondurable
0.1
-0.4
2.4
2.3
2.5
2.4
2.5
2.0
1.3
3.0
2.3
2.9
-0.4
-1.0
0.5
4.2
3.7
4.1
4.9
2.8
0.7
0.1
0.5
1.3
-0.7
4.1
4.1
1.7
2.5
0.3
Real hourly compensation, vfoich takes into account changes in the Consumer
Price Index for All Urban Consumers (CPI-U), fell 0.8 percent in the fourth
quarter of 1985, the first decline in a year. The increase in hours in the
fourth quarter reflected the largest quarterly gain in employment in 1985 and
the only increase in average weekly hours that year.
Ihe implicit price deflator for the business sector, vrfiich reflects
changes in unit labor costs and unit nonlabor payments, increased 2.4 percent
in the fourth quarter, compared with a 2.0 percent increase during the third
quarter.
Nonfarm business
Productivity declined 3.1 percent in the nonfarm business sector during
the fourth quarter of 1985 as output rose 1.5 percent ^hile hours of all
persons engaged in the sector increased 4.7 percent (table 2). Although the
productivity change was identical in the business and nonfarm business sectors
in the fourth quarter, both output and hours advanced more rapidly in nonfarm
business (table A).
Hourly compensation increased at a 3.3 percent annual rate in the nonfarm
business sector, but declined 1.0 percent v*ien the change in the CPI-U is
taken into account. Unit labor costs rose at a 6.6 percent annual rate, the
largest quarterly increase in this series since the third quarter of 1982 (vrfien
they rose 7.6 percent). As in the more comprehensive business sector, the
increase in hours in the fourth quarter reflected the largest employment gain
and the first increase in average weekly hours in 1985.
The iittplicit price deflator for nonfarm business output rose 1.4 percent
in the fourth quarter of last year, the smallest quarterly gain since 1970.
Manufacturing
Productivity declined at an 1.0 percent seasonally-adjusted annual rate in
manufacturing in the fourth quarter of 1985, as output rose 2.0 percent and
hours of all persons increased 3.0 percent. This decline was the first in
manufacturing productivity in a year and the largest in 4 years (table 3). The
fourth-quarter gain in paid hours in manufacturing was the first increase in
1985.
Hourly compensation increased at a 3.4 percent annual rate during the
fourth quarter, but declined 0.9 percent vtfien the increase in the CPI-U was
taken into account, and unit labor costs rose 4.5 percent. During the second
and third quarters, these costs declined.
Both durable and nondurable goods subsectors experienced productivity
declines in the fourth quarter as hours advanced more rapidly than output
(tables 4 and 5).
Nonfinaneial corporations
The Bureau of Labor Statistics also reported the annual change in
productivity and related measures for nonfinancial corporations for 1985.
According to preliminary measures, productivity declined 0.1 percent in 1985 as
output increased 2.8 percent but hours of all employees gained 3.0 percent.
This was the first annual decline in productivity in this sector since 1980
(vyfaen it dropped 0.7 percent). The gains in output and hours in 1985 were both
smaller than the increases in 1984 (table 6). Hourly compensation rose 3.1
percent in 1985, but declined 0.4 percent v\hen the increase in the CPI-U is
taken into account, and unit labor costs rose 3.3 percent. Unit nonlabor costs
rose 1.3 percent, tfiile unit profits increased a modest 5.9 percent. During
1983 and 1984, unit profits gained 37.0 percent and 26.1 percent,
respectively. Annual changes in productivity, output, and hours since 1975 are
shown in table B.
Revised measures
Revised productivity treasures for the fourth quarter of 1985 show larger
declines for business and nonfarm business than had been reported on January
29, based on information then available (table C). Output growth was less
rapid than in the preliminary measures, vfoile hours—particularly in the farm
sector—rose more. In manufacturing, both output gains and increases in hours
were larger in the revised measures, v\hile the decline in productivity was
somewhat less than in the preliminary release.
Preliminary and revised
measures are compared in table C.
Table B. Annual changes in productivity, output, and hours, 1975-85
Measure
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
-0.3
-1.1
-0.8
1.5
2.1
0.7
-0.4
-3.1
-2.7
2.8
4.3
1.5
2.1
8.2
6.0
0.2
2.7
2.4
1.0
1.7
0.7
-0.6
-3.3
-2.7
3.3
5.0
1.6
1.6
8.0
6.3
-0.2
2.7
2.8
2.2
0.0
1.6
-4.5
-4.5 -0.6
2.2
-6.1
-8.1
6.6
7.3
0.6
4.9
11.7
6.5
2.7
2.5
-0.2
0.7
-3.0
-3.7
3.6
4.7
1.1
2.1
9.2
7.0
-0.1
2.8
3.0
Business
Productivity
Output
Hours
2.0
-2.1
-4.0
2.8
5.8
2.9
1.7
5.8
4.0
0.8
5.8
4.9
-1.2
1.9
3.2
Nonfarm business
Productivity
Output
Hours
1.8
-2.3
-4.0
2.6
6.0
3.4
1.5
5.9
4.3
0.8
5.9
5.1
-1.6
1.8
3.5
-0
-1
-0.7
Manufacturing
Productivity
Output
Hours
2.5
-7.5
-9.7
4.6
9.7
4.9
3.0
7.4
4.3
1.5
6.0
4.4
-0.1
2.0
2.1
Nonfinaneial corporations
Productivity
Output
Hours
2.2
-3.0
-5.0
1.8
6.4
4.6
1.6
6.5
4.8
0.6
6.1
5.5
-0.8
2.8
3.7
-0.7
-1.8
-1.0
0.6
1.6
1.0
Quarterly changes in the CPI-U have been revised to reflect the most recent
information on seasonal variation in this series. This index was affected frcm 1980
forward by the inclusion of the new data, and can be seen as revised changes in real hourly
compensation in all sectors.
In addition, two other charges are introduced with the revised fourth-quarter 1985
measures. (1) A new method for measuring the labor input of 14- and 15-year-old workers
has been adopted. These persons contributed less than 0.5 percent of business labor input
in 1985. (2) An improved definition of farm workers has been introduced. The new classifications more nearly match the definition of farm activities (agricultural production:
crops, and agricultural production:
livestock).
These definitional changes affected
measures of labor input and associated series from 1983 forward, and related changes in the
computation of seasonal adjustment factors resulted in small changes extending back to
1980.
-5-
Table C. Preliminary and revised productivity and related measures,
fourth quarter and annual changes 1985
(Seasonally adjusted annual rates)
Sector
Productivity
Output
Hours
Hourly
ccmpensation
Real
hourly
compensation
Unit
labor
costs
Percent change from preceding quarter
Bus iness :
Prel iminary
Revised
-1.3
-3.1
2.5
1.1
3.9.
4.3
4.1
3.4
0.0
-0.8
5.5
6.7
Nonfarm business:
Prel iminary
Revised
-1.8
-3.1
2.6
1.5
4.5
4.7
3.5
3.3
-0.5
-1.0
5.4
6.6
Manufacturing:
Prel iminary
Revised
-1.5
-1.0
1.4
2.0
2.9
3.0
3.2
3.4
-0.8
-0.9
4.8
4.5
Annual percent change, 1984 - 1985
Business:
Prel iminary
Revised
Nonfarm business:
Prel iminary
Revised
Manufacturing:
Prel iminary
Revised
0.3
0.2
2.8
2.7
2.4
2.4
4.0
4.1
0.5
0.5
3.7
3.8
0.0
-0.2
2.8
2.7
2.8
2.8
3.7
3.7
0.1
0.1
3.7
3.9
2.6
2.7
2.4
2.5
-0.2
-0.2
4.4
4.4
0.8
0.8
1.7
1.7
Next release date
Hie next release of productivity and cost measures is scheduled for 10:00
AM ESTr itonday, April 28, 1986.
Released at that time will be preliminary
measures for the first quarter of 1986 for the business and manufacturing
sectors, and preliminary fourth-quarter 1985 series for nonfinancial
corporations.
TECHNICAL NOTES
Business sector output is equal to gross national product, less the
rest-of-the-world sector, general government, output of paid employees of
private households and nonprofit institutions, rental value of owner-occupied
dwellings, and the statistical discrepancy in computing the national income
accounts. Corresponding exclusions are also made in labor inputs. Business
output has accounted for about 77 percent of gross national product in recent
years.
Total manufacturing measures are computed by summing series prepared for the
durable and nondurable goods sectors.
The durable sector includes the following 2-digit SIC industries:
Primary
metals? fabricated metal products? nonelectrical machinery?7 electrical
machinery? transportation equipment? instruments? lumber and lumber products?
furniture and fixtures? stone, clay, and glass products? and miscellaneous
manufactures.
The nondurable sector includes these 2-digit SIC industries:
Textile mill products, apparel products, leather and leather products, printing
and publishing, chemical and chemical products, petroleum products, rubber and
plastic products, foods, and tobacco products.
Manufacturing output has accounted for about 24 percent of gross national
product in recent years.
Nonfinancial corporate output is equal to gross national product, less the
rest-of-the-world sector, general government, unincorporated business, output
of paid employees of private households and nonprofit institutions, rental
value of owner-occupied dwellings, the output of corporations engaged in
banking, finance, stock and commodity trading, and credit and insurance
agencies, and the statistical discrepancy in computing the national income
accounts. Nonfinancial corporate output has accounted for about 59 percent of
gross national product in recent years.
The productivity and associated cost measures in this news release describe the
relationship between output in real terms and the labor time involved in its
production. They show the charges from period to period in the amount of goods
and services produced per hour. 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 the
characteristics and effort of the work force.
-8Table 1. Business sector: Productivity, hourly compensation, unit labor cost, and prices, seasonally adjusted
Year and
quarter
Output per
hour
of all persons
Output
Compensation per
hour(l)
Hours
of all
persons
Real
compensation per
hour (2)
Unit
labor
cost
Unit nonlabor paymen ts(3)
Implicit
price
deflator(4)
Indexes 1977=100
1984
1985
I
II
III
IV
104. 9r
105. 5r
105. 3r
105. Or
117.1
119.2
119.6
120.1
lll.Sr
113. Or
113.6r
114. 4r
166. Ir
167. 5r
169. Ir
170. 4r
98. 3r
98. 2r
98. 2r
98. Ir
158. 4r
158. 7r
160. 6r
162. 3r
153. 4r
156. 8r
157. 3r
158. Or
156.6
158.0
159.4
160.8
ANNUAL
105. 2r
119.0
113. Ir
168. 2r
98. 2r
159. 9r
156. 5r
158.7
I
II
III
IV
105. 3r
105. 5r
105. 9r
105. Ir
121.2
121.9
122.6
123. Or
115.1r
115.6r
115.8r
117. Or
172. 4r
174. 3r
176. Ir
177. 6r
98. 5r
98. 5r
98. 9r
98. 7r
163.8
165. 2r
166. 3r
169. Or
157.6
158. 2r
158. 6r
156. 4r
161.6
162.7
163.5
164. 5r
ANNUAL
105. 4r
122. 2r
115. 9r
175. Ir
98. 6r
166. Ir
157. 7r
163.1r
Percent change from previous quarter at annual rate(5)
1984
5.1r
2.5r
-0.8r
-1.3r
13.6
7.5
1.3
1.7
8.1r
4.9r
2.1r
3.1r
4.9r
3.3r
4.1r
3.1r
-0.2r
-0.3r
0.2r
-0.6r
-0.2r
0.8r
4.9r
4.5
13. 5r
9.2r
1.3r
1.6
4.4
3.7
3.6
3.5
2.1
8.2
6.0
3.9
-0.3r
1.8
7.5r
3.8
I
II
III
IV
l.Or
0.8r
1.6r
-3.1r
3.6
2.3
2.5
l.lr
2.5r
U5r
0.9r
4.3r
4.8r
4.4r
4.2r
3.4r
1.5r
0.4r
1.6r
-0.8r
3.7r
3.5r
2.5
6.7r
-0.9r
1.4r
1.1
-5.4r
2.1
2.8
2.0
2.4r
ANNUAL
0.2r
2.7r
2.4
4.1r
0.5
3.8r
0.8r
2.8r
I
II
III
IV
ANNUAL
1985
Percent change from corresponding quarter of previous year
1984
2.6r
2.0
2.2
1.3
9.8
9.1
7.9
5.9
7.1
7.0
5.6
4.5
3.7
3.7
4.3
3.8
-0.7r
-0.6
0.1
-0.2r
1.1
1.7
2.1
2.5r
8.7
8.2
6.8
6.3r
3.7
3.9
3.7
3.8
2.1
8.2
6.0
3.9
-0.3r
1.8
7.5r
3.8
I
II
III
IV
0.3r
-O.lr
0.5
O.lr
3.5
2.2
2.5
2.4r
3.1r
2.3
2.0
2.3
3.8r
4.1r
4.1
4.2
0.2r
0.4
0.7
0.7
3.4r
4.1
3.6r
4.1r
2.7r
0.9r
0.8
-l.Or
3.2
3.0
2.6
2.3r
ANNUAL
0.2r
2.7r
2.4
4.1r
0.5
3.8r
0.8r
2.8r
I
II
III
IV
ANNUAL
1985
See footnotes following table 6.
r=revised
p=preliminary
February 27, 1986
Source: Bureau of Labor Statistics
-9Table 2. Nonfarm business sector: Productivity, hourly conpeasation, unit labor cost, and prices, seasonally adjusted
Year and
quarter
(Xitput per
hour
of all persons
Output
Compensation per
hourCl)
Hours
of all
persons
Real
compensation per
hour<2)
Unit
labor
cost
Unit non- Implicit
price
labor payinents ( 3 ) deflator(4)
Indexes 1977=100
1984
1985
I
II
III
IV
104. Or
104. 5r
104. 2r
103. 8r
117.1
119.2
119.5
120.0
112. 6r
114.0r
114.7r
115.6r
165.9
167.4
168.8
170.1
98.1
98.1
98.0
97.9
159. 6r
160. Ir
162. Or
163. 9r
152. 5r
156. 3r
157. 6r
158. 4r
157.1
158.8
160.5
161.9
ANNUAL
104. Ir
118.9
114. 2r
168. Or
98. Or
161 ..4r
156. 3r
159.6
I
II
III
!V
104.1
104. 2r
104. 3r
103. 4r
121.1
121.8
122.6
123.0r
116.3
116.9r
117.5r
118. 9r
172.1
173.7
175. Or
176. 4r
98.3
98.2
98.3
98. Ir
165.3
166. 8r
167. 8r
170. 5r
158.8
160. 2r
161. 4r
158. Or
163.0
164.5
165.5
166. Ir
ANNUAL
104. Or
122. Ir
117. 4r
174.3
98.2
167. 6r
159. 6r
164.8
Percent change from previous quarter at annual rate(5)
1984
I
II
III
IV
ANNUAL
1985
I
II
III
IV
AMflJAL
3.6r
2.2r
-1.3r
~1.3r
12.1
7.2
1.2
1.8
8.2r
4.9r
2.5r
3.1
4.9r
3.6r
3.4
3.2r
-0.2r
O.Or
-0.4r
-0.4r
1.2r
1.3r
4.8r
4.6r
4.9r
10. 4r
3.5r
1.9r
2.4
4.4
4.4
3.6
1.6
8.0
6.3
3.7
-0.6r
2.1r
6.2
3.5
l.Or
0.2r
0.4r
-3.1r
3.6
2.3
2.6
l.5r
2^6r
2.1r
2.1r
4»7r
4.7r
3.8
2.8
3.3r
1.4r
-0.2r
0.3r
-l.Or
3.6r
3.6r
2.4r
6.6r
l.Or
3.7r
2.9r
-8.2r
2.7
3.7
2.6
1.4r
-0.2r
2.7r
2.8
3.7
0.1
3.9r
2.1r
3.3
Percent change from corresponding quarter of previous year
1984
1985
II
III
IV
2.6
1.7
1.2
0.8
10.3
9.1
7.3
5.5
7.5
7.3r
6.0
4.6
3.5
3.6
4.0
3.8
-1.0
-0.7
-0.2
-0.3
0.8r
1.9r
2.7
3.0r
7.9r
6.4
5.5
5.1r
3.1
3.4
3.7
3.7
ANNUAL
1.6
8.0
6.3
3.7
-0.6r
2.1r
6.2
3.5
I
II
III
IV
O.lr
-0,4r
-0.4r
3.4
2.2
2.6
2.5r
3.3r
2.6r
2.5
2.9r
3.7
3.8
3.6
3.7
O.lr
0.1
0.3
O.lr
3.6r
4.2r
3.6r
4.1r
4.1r
2.5r
2.4
-0.2r
3.8
3.6
3.2
2.6r
ANNUAL
-0,2r
2.7r
2.8
3.7
oa
3.9r
2.1r
3.3
I
oa
See footnotes following table 6.
r=revised
p=preliminary
February 27, 1986
Source: Bureau of Labor Statistics
-10-
Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor cost,
seasonally adjusted
Year and
quarter
Output per
hour
of all persons
Hours
of all
persons
CXitput
(6)
Compensation per
hour ( 1 )
Real
compensation per
hour ( 2 )
Unit
labor
cost
Indexes 1977=100
116. 7r
117.8
119. 8r
119.5
115.2
117.4
119.5
119.5
98.7
99.7
99. 7r
lOO.Or
166.7
168.1
169.9
171.8
98.6
98. 6r
98.7
98.9
142. 8r
142.7r
141.9
143.7r
118.5
117.9
99.5
169.1
98.7
142.8
I
II
III
IV
119.9
121.7
122.7
122. 4r
119.8
120.4
121.3
121. 9r
99.9
98.9
98.9
99.6
174.3
176.1
177.3
178. 8r
99. 5r
99.5
99.6
99.4
145.4
144.7
144.5
146. Ir
ANNUAL
121. 7r
120. 9r
99.3
176. 6r
99. 5r
145. Ir
0.5r
O.Or
0.5r
0.7r
-1.6r
-0.2r
-2.4r
5.3
I
II
III
IV
1984
ANNUAL
1985
Percent change from previous quarter at annual rate(5)
I
II
III
IV
1984
ANNUAL
7.4r
3.8r
6.8
-0.9r
16.1
7.8
7.1
0.3
8.2r
3.9r
0.3
1.2r
5.6
3.6
4.3
4.9
11.7
6.5
3.7
-0.6
-1.2
2.8r
O.Or
0.2r
-0.9r
4.7r
-2. Or
-0.5r
4.5r
0.8
1.7
4.4
I
II
III
IV
1.3r
6.1
3.2
-l.Or
0.9
2.0
3.1
2. Or
-0.5
-3.9
-0.1
3. Or
6.1
4. Or
2.7
3.4r
ANNUAL
2.7r
2.5r
-0.2
4.4
1985
Percent change from corresponding quarter of previous year
1984
I
II
III
IV
5.7
5.3
4.6
4.2
15.7
13.6
10.3
7.7
9.4
7.9
5.5
3.3
2.7
3.4
4.0
4.5
-1.7
-0.9
-0.2
0.4
-2.9
-1.8
-0.5
0.2r
ANNUAL
4.9
11.7
6.5
3.7
-0.6
-1.2
1985
I
II
III
IV
2.7
3.3
2.4
2.4r
4.0
2.5
1.6
2. Or
1.2r
-0.8
-0.8r
-0.4
4.6
4.7
4.3
4.1r
1.0
1.0
0.9
0.5
1.8r
1.4
1.9r
1.7
ANNUAL
2.7r
2.5r
-0.2
4.4
0.8
1.7
See footnotes following table 6.
r=revised
p=prel iminary
February 27, 1986
Source: Bureau of Labor Statistics
-11Table 4, Durable manufacturing sector: Productivityr hourly compensation and unit labor cost,
seasonally adjusted
Year and
quarter
Output per
hour
of all persons
(Xitput
(6)
Hours
of all
persons
Gompensation per
hour(l)
Real
compensation per
hour(2)
Unit
labor
cost
Indexes 1977=100
I
II
III
IV
1984
ANNUAL
I
II
III
IV
1985
ANNUAL
117. Or
118.6
121.1
120. 6r
115.6
118.8
122.0
122.2
98.8
lOO.lr
100.7
101.4
165.5
166. 8r
168.2
169.8
97. 9r
97. 8r
97.7
97. 7r
141. 4r
140.6
138.9
140.9
119.3
119.7
100.3
167.6
97.8
140.4
121.3
122.8
123. 8r
123.4
122.6
122.8
123.4
123. 8r
101.1
100.0
99.7
100.4
172.6
174.3
175.9
178. Ir
98.6
98.5
98.8
99.0
142. 4r
141.9
142.1
144. 4r
122.8
123. Ir
100.3
175.4
98.8
142.8
Percent change from previous quarter at annual rate(5)
1984
I
II
III
IV
ANNUAL
1985
I
II
III
IV
ANNUAL
11. 4r
5.6r
8.6r
-1.7r
23.4
11.2
11.2
0.9
10. 8r
5.3r
2.4r
2.7r
6.1
3.2
3.4
4.1r
0.9r
-0.4r
-0.4r
0.4r
-4.8r
-2.3r
-4.8r
5.9r
7.5
17.1
8.9
3.3
-0.9
-3.9
2.4r
5.3
3.0
-1.3r
1.2
0.7
1.9
1.5r
-1.2r
-4.3
-1.1
2.8r
6.7
3.9
3.7
5.1r
3.4r
-O.lr
1.2r
0.8r
4.2r
-1.3
0.7
6.5r
2.9
2.9
0.0
4.7r
l.lr
1.7
Percent change from corresponding quarter of previous year
I
II
III
IV
9.1
8.3
7.1
5.9
22.3
19.9
15.8
11.4
12.1
10.7
8.1
5.2
2.4
3.1
3.6
4.2
-2. Or
-1.2
-0.5
0.1
-6.2
-4.8
-3.3
-1.6
ANNUAL
7.5
17.1
8.9
3.3
-0.9
-3.9
1984
1985
I
II
III
IV
ANNUAL
3.6
3.6
2.2
2.3r
6.0
3.4
1.2
1.3
2.3
-0.2
-1.0
-l.Or
4.3
4.5
4.6
4.9r
0.7
0.8
1.2
1.3
0.7
0.9
2.3
2.5r
2.9
2.9
0.0
4.7r
l.lr
1.7
See footnotes following table 6.
r=revised
p=preliminary
February 27, 1986
Source: Bureau of Labor Statistics
-12-
Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor cost,
seasonally adjusted
Year and
quarter
Output per
hour
of all persons
Output
(6)
Hours
of all
persons
Compensation per
hour ( 1 )
Heal
compensation per
hour { 2 )
Unit
labor
cost
Indexes 1977=100
1984
116. 3r
116.6
117. 8r
117.9
114.6
115.4
115.8
115.6
98.5
99.0
98.3
98.0
168.8
170.4
172.6
174.6
99.8
99.9
100.3
100.5
145. Ir
146. Ir
146. 6r
148.1
117.1
115.4
98.5
171.6
100. 1
146.5
I
II
III
IV
117.8
120. Or
121.0
120. 8r
115.7
116.8
118.2
119. Ir
98.2
97.4
97.7
98.5
176.9
178.8
179.3
179.6
101.0
101.1
100. 7r
99. 8r
150.1
149. Or
148.2
148. 6r
ANNUAL
119. 9r
117. 4r
98,0
178.2
100.4
148. 6r
I
U
III
IV
ANNUAL
1985
Percent change from previous quarter at annual rate(5)
1984
1.7
l.lr
4.0r
0.4r
6.2
2.9
1.1
-0.7
4.4
1.8r
-2.8r
-l.lr
4.2
3.9
5.4
4.7
-0.8r
0.3r
1.5r
l.Or
2.6r
2.8r
1.3r
4.3r
1.3
4.3
3.0
3.7
-0.6
2.3
I
II
III
IV
-0.2r
7.4
3.5
-0.6r
0.4
3.9
5.0
2.8r
0,6r
-3.3r
1.4
3.4r
5.3r
4.4
1.2
0.6r
2. Or
0.3r
-1.3r
-3.6r
5.4r
-2.9r
-2.2
1.2r
ANNUAL
2.4r
1.8r
-0.5
3.8
0.3
1.4r
I
II
III
IV
ANNUAL
1985
Percent change from corresponding quarter of previous year
1984
I
II
III
IV
1.3
1.2
0.9
1.8r
7.0
5.2
2.7
2.3
5.7r
4.0
1.8
.0.6
2.7
3.3
4.1
4.6
-1.7
-1.0
-0.1
0.5
1.4
2.1
3.2
2.7r
1.3
4.3
3.0
3.7
-0.6
2.3
I
II
III
IV
1.3r
2.9
2.8
2.5r
0.9
1.2
2.2
3. Or
-0.4r
-1.6
-0.6
0.5
4.8
4.9
3.9
2.8
1.2
1.2
0.5
-0.7
3.5
2.0
1.1
0.3r
ANNUAL
2.4r
1.8r
-0.5
3.8
U.3
1.4r
ANNUAL
1985
See footnotes following table 6.
r=revised
p^preliminary
February 27, 1986
Source: Bureau^of Labor Statistics
-13-
Table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor cost, unit profits,
and prices, seasonally adjusted
Output
Year
per alland
quarter employee
hour
CXitput
Employee Hourly
Real
hours compensa- hourly
tion
compen(1)
sation(2)
Unit
labor
cost
Unit
nonlabor
cost(7)
Total
unit
cost
(8)
Unit Implicit
pro- price
fits deflator
(9)
(4)
Indexes 1977=100
1984
1985
I
II
III
IV
106.2
106.7
106.1r
105.8
118.9
121.1
121.4
122.2
112.0
113. 5r
114.5
115.5
164.2
165. 6r
166. 8r
167.9
97.1
97. Ir
96. 9r
96.7
154.7
155.1
157.2
158.7
172.3
174,0
177.0
177.9
159.1
159.9
162.2
163.6
132.9
139.1
134.3
135.9
156.0
157.4
158.9
160.3
ANNUAL
106. 2r
120.9
113.9
166. Ir
96.9
156.4
175.3
161.2
135.6
158.1
I
II
III
IV
105.8
105. 8r
106.5
N.A.
123.2
123.7
124.9
N.A.
116.4
117.0
117.3
N.A.
169. 4r
170. 8r
172. Or
N.A.
96.7
96. 6r
96.6
N.A.
160.0
161.5
161.5
N.A.
177.6
178^6
177.2
N.A.
164.4
165.8
165.5
N.A.
138.3
139.1
150.2
N.A.
161.3
162.6
163.6
N.A.
ANNUAL
106. Op
124. 3p
117. 2p
171. 3p
96. 5p
161. 6p
177. 7p
165. 6p
143. 5p
163. Op
Percent change from previous quarter at annual rate(5)
1984
I
II
III
IV
ANNUAL
1985
I
II
III
IV
ANNUAL
4.7
2.1r
-2.3
-l.lr
13.9
7.8
1.0
2.5
8.8
5.6r
3.4
3.6r
4.4
3.4r
3.0
2.8r
-0.7r
-0.2r
-0.8r
-Q,8r
2.1
9.2
7.0
3.4
-0.8
0.1
-0.2r
2.8
3.2
1.9
3.8
3. Or
2.2r
1.0
N.A.
3.4
3.5r
2.8
N.A.
3. Op
3. Ip
N.A.
-O.lp
N.A.
2.8p
0.2r
-O.Sr
0.2r
N.A.
-0.4p
-0.3
1.2
5.5
3.9
-3.2
4.0
7.1
2.0
-1.1
2.0
5.9
3.4
32.0
19.7
-13.0
4.9
1.8
3.7
3.8
3.5
1.2
-0.5
0.8
26.1
2.9
3.2
3.8
0.0
N.A.
-0.8
2.4
-3.2
N.A.
2.1
3.4
-0.9
N.A.
7.2
2.2
36.0
N.A.
2.6
3.3
2.5
N.A.
3.3p
2.7p
1.3p
5.9p
3. Ip
Percent change from corresponding quarter of previous year
1984
1985
I
II
III
IV
3.5
2.9
1.5
0.8
11.8
10.9
8.3
6.2
8.0
7.8
6.7r
5.3
3.1
3.4
3.7
3.4
-1.3
-0.9
-0.5
-0.6
-0.4
0.5
2.2
2.6
-3.0
-1.6
0.2
2.4
-1.1
-0.1
1.7
2.5
52.8
34.9
17.4
9.6
2.6
2.7
3.1
3.2
ANNUAL
2.1
9.2
7.0
3.4
-0,8
1.2
-0.5
0.8
26.1
2.9
I
II
III
IV
-0.3
-0.9
0.4
N.A.
3.6
2.2
2.9
3.9
3.1
2.5
3.1
3.2
3.1
-0.4
-0.5
-0.2
3.5
3.0
2.7
U.I
N.A.
3.3
3.7
2.0
N.A.
4.0
0.0
11.8
3.4
3.3
3.0
N.A.
ANNUAL
-O.lp
N.A.
2.8p
See footnotes following table.6.
r-revised
p=preliminary
N/A = not available
N.A.
3. Op
N.A.
3. Ip
N.A.
-0.4p
4.1
2.7
N.A.
3.3p
1.3p
2.7p
N.A.
5.9p
3. Ip
February 27, 1986
Sources Bureau of Labor Statistics
SOURCES: CXitput data from Bureau of Economic Analysis, U.S. Department of
Comnerce, 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: Productivity and cost measures are regularly revised as more
complete information becomes available. Preliminary results are published 30
days after the close of the reference period; revisions appear 30 days later,
and second revisions after an additional 60 days. In the business sector, the
probability is 0.95 that the third publication (second revision) of a quarterly
index of output per hour of all persons will differ from the preliminary value
by between -1.7 and +1.9 index points.
This interval is based on the
performance of this measure between the first quarter of 1976 and the second
quarter of 1985.
Footnotes, Tables 1-6
(1) Wages and salaries of the employees plus employers1 contributions for
social insurance and private benefit plans. Except for nonfinancial corporations, vdiere 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) Unit nonlabor payments include profits, capital consumption allowances
interest, rental payments, and indirect taxes.
(4) Current dollar gross product divided by constant dollar gross product.
(5) Quarterly charges: percent change compounded at annual rate from the
original data rather than index numbers. Annual changes: percent change
between annual average levels.
(6) Quarterly manufacturing output measures are based on the index of
industrial production prepared monthly by the Board of Governors of the
Federal Reserve adjusted by BLS to annual manufacturing output levels
(gross product originating) from the National Income and Product Accounts
prepared by the Bureau of Economic Analysis of the U.S. Department of
Conroerce.
(7) Unit nonlabor cost includes capital consumption allowances, interest,
rental payments, and indirect taxes.
(8) Total unit cost is the sum of labor and nonlabor costs.
(9) Unit profits include corporate profits with inventory valuation and
capital consumption adjustments.
@FedFRASER