The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
News Bureau of Labor Statistics United States Department of Labor Washington, D.C. 20212 Historical, technical information: (202) 523-9261 Current data : (202) 523-1221 or 1208 Media contact: (202) 523-1913 USDL 88-381 For Release 10:00 AM EDT Thursday, August 4, 1988 PRODUCTIVITY AND COSTS Second Quarter 1988 The Bureau of Labor Statistics of the U.S. Department of Labor today reported preliminary productivity data—as measured by output per hour of all persons—for the second quarter of 1988. The seasonally-adjusted annual rates of productivity change in the second quarter were; -2.2 percent in the business sector, -1.7 percent in the nonfarm business sector, 3.5 percent in manufacturing, 3.8 percent in durable goods manufacturing, and 2.6 percent in nondurable goods manufacturing* The productivity declines in the business and nonfarm business sectors were the first since 1986. Although output continued to advance, even faster increases in hours of all persons engaged in these sectors were reflected in productivity declines. On the other hand, although manufacturing output was alBO up strongly, hours expanded relatively little, and productivity advanced. Second-quarter measures are summarized in table A and appear in detail in tables 1 through 5. Business Productivity declined at a 2.2 percent annual rate during the second quarter of 1988 in the business sector, as output rose 3.5 percent and hours of all persons engaged in the sector increased 5.9 percent (seasonally adjusted annual rates)* This was the first decline in business productivity since 1986 (appendix table 1). During the first quarter of 1988, productivity had increased 3.5 percent (table 1). Although productivity declined in the April-June period, hours increases were the largest since the first quarter of 1984. In the second quarter of 1988, employment rose 4.8 percent and average weekly hours increased 1.1 percent. Hourly compensation increased at a 4.7 percent annual rate during the second quartet of 1988, compared with a 3.7 percent gain during the previous quarter. Thi, measure includes wages and salaries, supplements, employer - 2- Table A. Productivity and costs: Preliminary second quarter 1988 measures (Seasonally adjusted annual rates) Productivity Sector Output Hours Hourly compensation Real hourly compensation Unit labor costs -0.1 -0.6 -1.8 -3.2 0.4 7.0 5.9 -0.6 -2.3 2.5 0.8 0.7 -0.7 -0.8 -0.7 3.3 3.0 0.3 -0.2 1.3 Percent change from preceding quarter Business -2.2 Nonfarm business -1.7 Manufacturing 3.5 Durable 3.8 Nondurable 2.6 3.5 4.7 5.4 7.4 2.1 5.9 6.5 1.8 3.5 -0.5 4.7 4.1 2.9 1.4 5.2 Percent change from same quarter a year ago Business Nonfarm business Manufacturing Durable Nondurable U4 1.6 2.8 3.3 1.9 5.3 5.7 6.3 7.2 4.8 3.9 4.1 3.4 3.8 2.9 4.8 4.6 3.1 3.1 3.2 contributions to employee-benefit pl$ns, and taxes. Unit labor costs, Which reflect changes In hourly compensation and productivity, Increased at a 7.0 percent annual rate during the second quarter, compared with a 0.2 percent increase during the first quarter. The second-qyarter Increase was the largest since 1982 (when a 7.2 percent jump occurred in the third quarter). Real hourly compensation, which takes into account changes in the Consumer Price Index for All Urban Consumers (CPI-U), declined at a 0.1 percent annual rate during the second quarter. During the first quarter, this measure had increased at a 0.3 percent annual rate. The implicit price deflator for business output, which reflects changes in unit labor costs and unit nonlabor payments, increased 3.9 percent in the second quarter, compared with a 1.0 percent rise in the first quarter* Nonfarm business Productivity declined 1.7 percent in the nonfarm business sector during the second quarter of 1988, as output rose 4.7 percent and hours of all persons—employees, proprietors, and unpaid family workers—increased 6.5 percent. This was the first productivity decline since 1986 (appendix table 2), and the largest gain in hours since 1984, when they rose 7.7 percent during the first quarter. During the first quarter of 1988, productivity had increased 3.4 percent in this sector (table 2). As in the more comprehensive business sector, growth in output slowed and hours growth accelerated in the second quarter. - 3- Hourly compensation Increased 4.1 percent in the second quarter, but fell 0.6 percent when the increase in the CPI-U was taken into account. During the first quarter the comparable changes were 3.5 percent and 0.1 percent, respectively. Unit labor costs increased 5.9 percent, compared with a 0.1 percent rise during the first quarter of 1988. The Increase in these costs was the largest since 1986 (when they rose 6.1 percent in the fourth quarter). The implicit price deflator for nonfarm business output rose 3.8 percent in the second quarter, compared with a 0.6 percent increase one quarter earlier. Manufacturing Productivity increased at in manufacturing in the second cent and hours of all persons and hours all grew faster in (table 3). a 3.5 percent seasonally adjusted annual rate quarter of 1988, as output increased 5*4 per* increased 1.8 percent* Productivity, output, the second quarter of 1988 than in the first -Hourly compensation of manufacturing workers increased 2.9 percent during the second quarter, compared with a 5*4 percent Increase during the first quarter. Real hourly compensation declined 1.8 percent in the second quarter when the Increase in consumer prices was taken into account. During the .first quarter, this measure rose at a 2.0 percent annual rate. Only one increase has occurred in manufacturing real hourly compensation in the past 6 quarters. Unit labor costs were down at a 0.6 percent annual rate in the second quarter, compared with a 2.2 percent increase during the first quarter of 1988. Both durable and nondurable goods Industries experienced productivity increases in the second quarter, but growth was faster among durable goods producers (tables 4 and 5). Hours of all persons engaged in manufacturing declined in nondurable goods production. Revised measures The productivity and cost measures contained In this news release for business, nonfarm business, manufacturing, and nonfinancial corporations are based on the latest measures of output and hours available* Revised quarterly and annual output and compensation measures prepared by the Bureau of Economic 'Analysis (BEA) of the U.S. Department of Commerce are reflected in the productivity and cost measures for business, nonfarm business, and nonfinancial corporations. These new values were published by BEA on July 27 as part of the regular revision cycle of the national income and product accounts and affect the last 3 years. For manufacturing, revised quarterly changes in output and related measures were computed by BLS to take into account the new annual output levels from BEA for 1985-1987. See append!: tables 1-6. - 4- In addition, recent information on employment and average weekly hours of all persons engaged in these sectors is also incorporated in productivity and cost measures at this time. Historical tables are available on request from the Bureau of Labor Statistics, Office of Productivity and Technology, Washington, D.C. 20212; (202) 523-9261. Productivity and cost measures on diskettes formatted for use on IBMcompatible microcomputers using LOTUS 1-2-3 are also available for $35. For ordering Information, contact ELS Data Diskettes, 441 G Street NW, Room 2127, Washington, D.C. 20212; (202) 523-1090. Next release date The next release of productivity and cost measures is scheduled for 10:00 AM EDT, Thursday, September 1, 1988. Preliminary second-quarter measures for nonfinancial corporations will be released at that time. - 5- TECHNICAL NOTES Business sector output is equal to gross national product in constant 1982 dollars, less the rest-of-the-world sector, general government, output of nonprofit institutions, output of paid employees of private households, 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 accounted for 80 percent of gross national product in 1987. The nonfarm business sector, which also excludes farming, accounted for about 78 percent of gross national product in 1987. Total manufacturing measures are computed by summing series prepared for the durable and nondurables goods sectors. The durable sector includes the following 2-digit SIC industries: Primary metals; fabricated metal products; nonelectrical machinery; 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 will products, apparel products, leather and leather products, printing and publishing, chemical and chemical products, petroleum products, rubber and plastic products, food, and tobacco products. Manufacturing output accounted- for about 22 percent of gross national product in 1987. Nonfinancial corporate output is equal to gross national product in constant 1982 dollars, less the rest-of-the-world sector, general government, unincorporated business, output of nonprofit institutions, output of paid aisployees of private households, rental value of owner-occupied dwellings, the of corporations engaged in banking, finance, stock and commodity trading, <?££ and insurance agencies, and the statistical discrepancy in computing the national income accountBO Nonfinancial corporate output accounted for about 59 percent of gross national product in 1987. 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 changes 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 contribution of laborr 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; taangerial skill; and the characteristics and effort of the work force. - 6- Table 1. Business sector: 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 paymentsO) Implicit price deflator(4) Indexes 1977-100 I II III IV r!09.9 rllO.6 rill.7 rill.8 ri30.5 r!32.2 ri34.3 H36.2 rll8.8 rll9.5 r!20.3 r!21.8 r!87.3 rlB9.0 r!91.1 rl94.0 rlOl.5 rl01.2 rl01.4 r!02.0 r!70.5 r!70.8 r!71.1 r!73.5 r!65.6 r!68.7 rl7l.5 rl68.9 r!68.7 r 170.1 r!7U2 r!7l.9 ANNUAL rllUO r!33.3 r!20.1 ri90.4 rl01.5 r!71.5 r!68.7 r!70.5 I II H12.8 112.2 r!38.0 139.2 r!22.3 124.1 H95.8 198.0 r!02.1 102.0 r!73.5 176.5 r!70.0 169.2 rl72.3 173.9 1987 1988 Percent change from previous quarter at annual rate(5) 1987 I II lit IV rO.3 r2.7 r3.9 rO.6 r3.7 r5.3 r6.6 r5.7 r3.4 r2.5 r2.6 r5.1 r2.5 r3.6 r4.6 r6.2 r-2.8 r-1.2 rO.8 r2.4 r2.2 rO.8 rO.7 r5.6 r4.6 r7.9 r6.7 r-5.8 r3.0 r3.2 r2.8 rl.4 ANNUAL rO.8 r3.6 r2.8 r4.0 rO.3 r3.1 r2.3 r2.8 I II r3.5 -2.2 5.5 3^5 rl.9 5.9 r3.7 4.7 rO.3 -0.1 rO.2 '7.0 r2.5 -1.8 rl.O 3.9 1988 Percent change from corresponding quarter of previous year I II III IV r-0.6 rO.2 rU5 rl.9 rl.6 r3.1 r4,5 r5.3 r2.2 r2.9 r3.0 r3.4 r3.8 r3.8 r3.9 r4.2 ri.5 rO.O r-0.3 r-0.2 r4.4 r3.6 r2.3 r2.3 rO.7 r2.1 r2.9 r3.2 r3.1 r3.l r2.5 r2.6 ANNUAL rO.8 r3.6 r2.8 r4.0 rO.3 r3.1 r2.3 r2.8 I II r2.7 1*4 r5.8 5.3 r3.0 3.9 r4.5 4.8 r0^5 0.8 rl.8 3.3 r2.7 0.3 r2.l 2.3 1987 1988 See footnotes following table 6. r-revlsed August A, 1988 Source: Bureau of Labor Statistics - 7- Table 2. Nonfann business sector: 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 compensatlon per hour (2) Unit labor cost Unit nonlabor paymentsO) Implicit price deflator(A) Indexes 1977-100 1987 1988 I II lit IV H07.8 rl08.6 r!09.6 r!09.9 H30.1 r!31.9 rl34.1 r!36.0 r!20.7 r!21.5 r!22.3 r!23.8 rl86.4 r!87.9 r!90.0 r!92.9 rlOl.O rlOO.6 rlOO.8 rl01.4 r!72.9 r!73.0 rl73.3 r!75.6 r!67.2 rl69.8 173.0 r!70.9 r!70.9 rl71.9 r!73.2 ri74.0 ANNUAL r!09.0 rl33,0 r!22.1 rl89.4 rlOl.O rl73.8 r!70.2 r!72.5 I II rllO.8 110.3 r!37.9 139.5 r!24.4 126.4 r!94.6 196.6 riOl.5 101.3 r!75.7 178.2 r!71.6 171.4 r!74.2 175.8 Percent change from previous quarter at annual rate(5) 1987 1988 I II III IV rO.O r3.2 r3.7 rO.9 r4.0 r5.7 r6.8 r5.9 r4.0 r2.5 r2.9 r4.9 r2.l r3.4 r4.5 r6.4 r-3.2 r-1.4 rO.6 r2.6 r2.1 rO.2 rO.7 r5.4 r5.7 r6.5 r7.7 r-4.8 r3.3 r2.3 r3.1 rl.8 ANNUAL 0.8 r3.8 r3.0 r3.8 rO.2 r3.1 r2.3 r2.8 I II r3.4 -1.7 r5.6 4.7 r2.1 6.5 r3.5 4.1 rO.l -0.6 rO.l 5.9 rl.6 -0.3 rO.6 3.8 Percent change fro* corresponding quarter of previous year 1987 1988 rl.6 r3.2 r4.7 r5.6 r2.4 r3.0 r3.2 r3.6 r3.7 r3.7 r3.7 r4.1 rl.4 r-0.1 r-0.4 r-0.4 r4.5 r3.5 r2.2 r2.1 rO.6 rK9 r2.9 r3.6 r3.0 r2.5 r2.6 0.8 r3.8 r3.0 r3.8 rO.2 r3.1 r2.3 r2.8 r2.8 1.6 r6.0 5.7 r3.1 4.1 r4.4 4.6 rO.5 0.7 rl.6 3.0 r2,6 1.0 1.9 2.3 I II III IV r~0.8 rO.2 1.5 rl.9 ANNUAL I II See footnotes following table 6. r-revised T3.1 August 4, 1988 Source: Bureau of Labor Statistics - 8- Table 3. Manufacturing sector: Productivityt hourly conpensatlon, and unit labor cost, seasonally adjusted Year and quarter Output per hour of all persons Output (6) Hours of all persons Conpensatlon per hour(l) Real coapensatlon per hour (2) Unit labor cost Indexes 1977-100 1987 1988 1 II III IV r!30.0 r!31.7 r!32.8 r!33.2 r!27.2 r!28.7 r!31.1 r!33.5 r97*8 97.7 r98.8 rlOO.2 r!85.9 r!86.3 rl87.2 r!88.2 rlOO.8 r99.7 r99.3 r99.0 r!43.1 rl41.4 r!41.0 rU1.3 ANNUAL r!32.0 r!30.1 r98.6 r!86.9 r99.7 r!41.7 I II rl34.3 135.4 r!35.0 136.8 rlOO.6 101.0 r!90.7 192.1 r99.4 99.0 r!42.1 141.9 Percent change fro* previous quarter at annual rate(5) 1987 1988 I II III IV r3.6 r5.5 r3.2 rl.3 r4.1 r4.9 r7.8 r7.5 rO.5 r-0.6 r4.4 r6.1 rl.4 cO.7 r2.1 2.1 r-3.8 r-4.0 r-1.7 -1.5 r-2.1 r-4.6 r-1.1 rO.8 ANNUAL r3.4 r4.3 rO.9 r2.1 r-1.5 r-1.2 I II r3.2 3.5 r4.6 5.4 rl.3 1.8 r5.4 2.9 r2.0 -1.8 r2.2 -0.6 Percent change fro» corresponding quarter of previous year 1987 1988 I II lit IV r2.7 r3.6 r3.7 r3.4 r2.4 r3.7 r5*l rt.O r-0.3 rO.l rl.4 r2.6 r2.7 r2.3^ r2.0 rKd I&.4 r-1.4 r-2.1 r-2.7 rO.O r-1.2 r-1.7 r-U8 ANNUAL r3.4 r4»l i0.9 r2.1 r-1.5 r-U2 r3.3 2.8 r6.2 6.3 rZ,» 3.4 r2.6 3.1 r-U3 -0.7 r-0.7 0.3 I II See footnotes following table 6. r*revlsed August 4, 1988 Source; Bureau of Labor Statistics- - 9- Table 4* Durable manufacturing sector: Productivity, hourly compensation, and unit labor cost, seasonally adjusted Year and quarter Output per hour of all persons Output '(°), . Hours of all persons Compensar tlon per hour(l) Real compensatlon per hour (2) rlOO.2 r98.8 r98.3 r97.9 r!35.3 r!33.5 r!33.2 r!33.0 Unit labor cost Indexes 1977-100 1987 1988 I II III IV r!36.6 rl38.1 r!39.1 r!40.0 r!33.3 r!34.2 T136.5 r!39.9 r98.2 r99.9 r!84.9 rl84.4 r!85.3 r!86.2 ANNUAL irl38.5 r!36.0 98.2 r!85.2 r98.8 rl33.7 I II rU1.3 142.7 rl41.3 143.9 rlOO.O r!89.S 100.9 190.1 r98.8 98.0 r!34.1 133.3 r97.6 97.2 Percent change from previous quarter at annual rate(S) 1987 1988 I II III IV r4.7 r4.4 r2.9 r2.6 no. 2 ANNUAL r3.8 r4.0 I II r3.8 3.8 r4.5 r2.8 r7.0 4.3 7.4 r-0.2 r-1.5 r4.0 r7.3 rl.3 r-1.0 r2.0 rl.9 r-3.9 r-5.6 r-1.7 r-1.7 r-3.2 r-5.1 r-0.9 r-0.7 0.2 rl.8 r-1.8 r-1.9 rO.4 r7.1 1.4 r3.6 -3*2 r3.2 -2.3 r-0.8 r-2.0 r-2.1 r-2.5 3.5 Percent change froa corresponding quarter of previous year 1987 I II III IV '•• ANttUAL 1988 I II r3.3 r4.1 r3»8 r3.7 r2.I r3.3 r4.3 r6.1 r-1.2 r-0.8 rO.6 r2.3 r2.6 r2.0 rt.7 rUl r0.3 r-1.7 r-2.4 r-J.2 r3.8 r4.0 0.2 rU8 r-1.8 r*l.9 r3.4 3.3 r6»0 7.2 r2.S r2.5 3.1 r-1.4 -P.* r-0.9 -0.2 See footnotes following cable 6. r-revised 3.8 August 4^ 1988 Source: Bureau of Labor Statistics - 10. - Table 5* Nondurable Manufacturing sector: Productivity, hourly compensation, and unit labor cost, seasonally adjusted Year am* quarter Output per hour of all persons Output (6) Hours of all persons Coapensar tlon per hour(l) Real coapensatlon per hour(2) Unit labor cost Indexes 1 977-100 1987 1988 I 11 III IV rl20.1 r!22.4 r!23.5 r!23.2 rllS.O rl20.5 r!23.1 r!24.0 r98.2 r98.4 r99.7 rlOO.7 r!88.0 r!89.7 r!9C.8 r!9l.9 rl01.9 rl01.6 rl01.2 rlOO.9 rl56.4 H55.0 r!54.5 rl55.8 ANNUAL r!22.3 rl21.4 r99.3 r!90.1 rl01.4 r!55.4 I II r!23.9 U4.7 r!25.6 126.2 rl01.4 101.3 r!93.2 195,7 rlOO.8 100.9 rl56.0 157.0 Percent change fro* previous quarter at annual rate(5) 1987 1988 I II III IV rl.9 r7.6 r3.8 r-1.1 r3.4 r8.5 r9.0 r3.1 rl.5 rO.8 r5.1 r4.2 ri.6 r3.8 r2.4 r2.2 r-3.6 p-1.0 r-i;4 r-1.4 r^0.2 r-3.6 r-1.3 r3.4 ANNUAL r2.8 r4.9 2.0 r2.8 r-0.8 rO.O r2.3 2.6 r5.l 2.1 r2.7 -0.5 r2.9 5.2 «-0,5 0.4 rO.6 2.5 1 II Percent change froa corresponding quarter of previous year 1987 1988 I II III IV rl.8 r2.9 r3.6 r3.0 r2.9 r4.4 r6.2 r6.0 rl.l rl.5 r2.5 2.9 r3.2 r3.1 r2.6 r2.5 rO.9 r-0.7 r-1.5 r-1.9 ti.4 rO.2 r-UO r-0*5 ANNUAL r2.8 r4.9 2.0 r2.8 r-0.8 to.o I II r3.1 i,-9 r6.4 4.8 r3.2 2.9 r2.8 3.2 p-l.t -0.7 r-0.3 1.3 See footnotes following table 6. r- revised August 4t 1988 Source: Bureau of Labor Statistics - 11 Table 6, Nonfinanctal corporations: Productivity, hourly compensation, unit labor cost, unit profits, and prices, seasonally adjusted Year and quarter Output per allemployee hour Output Employee Hourly Real hours com pens a- hourly tlon com pen(1) sation(2) Unit labor cost Unit nonlabor cost (7) Total unit cost (8) Unit profits (9) Implicit price deflator (4) Indexes 1977-100 1987 1988 I II III IV rllO.l rllO.9 rU2.2 rli2.2 r!31.3 r!33.3 r!36.1 rl57.7 119.3 r!20.2 r 12 1.3 r!22.8 r!82.9 r!84.3 r!86.1 r!88.5 r99.1 r98.7 r98.7 r99.1 r!66.2 r 166.1 r!65.9 r!68. 1 rlSO.8 r!82.6 r!83.0 ri83.6 r!69.9 r!70.3 r!70.2 r!72.0 r!28.5 r!29.8 r!36.4 r!28.3 r!64.9 r!65.4 r!66.1 r!66.7 ANNUAL rill. 3 r!34.6 r!20.9 r!85.5 r98.9 r!66.6 r!82.5 r!70.6 r!30.8 r!65.8 I rl!3.3 r!40.1 r!23.6 r!89.9 r99.0 r!67.5 r!83.4 r!71.5 r!32.5 r!66.9 Percent change from previous quarter at annual rate(5) 1987 1988 I II III IV r-1.0 r3.1 r4.7 r-O.i r2.9 r6.1 r8.8 r4.7 r4.0 r2.9 r4.0 r4.8 rl.6 r2.9 r4.i r5.2 r-3.6 r-1.8 rO.3 rl.5 r2.6 r-0.2 r-0.6 r5.3 r2.5 r4.1 rO.8 rl.5 r2.6 rl.O r-0.2 r4.2 r-3.5 r3.9 r21.9 r-21.5 r2.0 rl.2 rl.7 ri,5 ANNUAL rl.5 r4.3 r2.7 r3.4 r-0.3 1.8 r2.3 rl.9 r-1.2 rl.6 I r4.3 r7.2 r2.8 r3.0 r-0.4 r-1.2 r-0.3 r-1.0 r!3.8 rO.3 Percent change froa corresponding quarter of previous year 1987 1988 rO.5 rl.5 r2.3 rl.6 r2.0 r3.9 r5.6 r5.6 1.5 r2.4 r3.2 r3.9 r3.3 r3.2 r3.3 r3.4 rl.O r-0.6 r-0.9 r-1.0 r2.8 rl.7 I0..9 *U8 r2.3 r3.2 rl.5 r2.2 r2.6 r2.1 rl.l rl.9 r-3.8 r-2.2 r2.0 r-1.1 2.0 rl.7 rl.2 rl.6 ANNUAL rl.5 r4.3 r2.7 r3.4 r-0.3 1.8 r2.3 rl.9 r-1.2 rl.6 I r3.0 r6.7 r3.6 r3.8 r-0.1 rO.8 rl.5 rl.O r3.1 rl.2 I II III IV See footnotes following table 6. r*revised August 4, 1988 Source: Bureau of Labor Statistics. - 12 - 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: Productivity and cost measures are regularly revised as more complete information becomes available. The measures are first 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 quar^ terly index of output per hour of all persons will differ from the Initial value by between -2.0 and +2.0 index points. This interval is based on the performance of this measure between the first quarter of 1976 and the second quarter of 1987. 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, where there are no self-employed, data also include an estimate of wages, salaries, and supplemental payments for the selfemployed. (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 income of persons, and indirect taxes. (4) Current dollar gross product divided by constant dollar gross product. (5) Quarterly changes: 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 Commerce. (7) Unit nonlabor cost includes capital consumption allowances, interest, rental income of persons, and indirect taxes. For nonfinancial corporations, rental income of persons is zero by definition. (8) Total unit cost is the sum of labor and nonlabor costs. (9) Unit profits include corporate profits with capital consumption adjustments. inventory valuation and -13Appendix table 1. Business sector: 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 payments(3) Implicit price deflator(4) Indexes 1977-100 1985 1986 I II III IV 106.7 107.5 108.3 108.5 122.4 123.7 124.8 125.9 114.7 115.0 115.3 116.1 172.5 174.2 176.4 178.8 98.5 98.4 99.1 99.4 161.6 162.0 163.0 164.8 158.7 161.1 162.1 161.6 160.6 161.7 162.6 163.7 ANNUAL 107.7 124.2 115.3 175.5 98.8 162.9 160.9 162.2 I II III IV 110.5 110.4 110.0 109.8 128.4 128.2 128.5 129.3 116.2 116.1 116.8 117.8 180.4 182.0 184.0 186.2 100.0 101.2. 101.7 102.2 163.3 164.9 167.3 169.6 164.5 165.2 166.6 163.7 163.7 165.0 167.0 167.5 ANNUAL 110.1 128.6 116.8 183.1 101.2 166.3 165.0 165.8 1.8 6.2 2.6 -1.1 2.0 2.7 2.5 2.6 Percent change from previous quarter at annual rate(5) 1985 1986 I II III IV 2.9 3.1 2.8 0.7 5.7 4.0 3.7 3.6 2.7 0.9 0.9 2.9 5.2 4.0 5.3 5.4 1.6 -0.4 2.9 1.3 2.2 0.9 2.4. 4.7 ANNUAL 2.1 4.2 2.1 4.5 0.9 2.4 2.8 2.5 I II III IV 7.7 -0.4 -1.4 -0.8 8.3 -0.8 0.9 2.5 0.6 -0.4 2.3 3.4 3.7 3.7 4.4 4.8 2.1 5.1 2.0 2.1 -3.7 4.1 5.8 5.7 7.3 1.7 3.4 -6.7 0.1 3.2 5.0 1.1 ANNUAL 2.2 3.5 1.3 4.3 2.4 2.1 2.5 2.3 Percent change from corresponding quarter of previous year 1985 1986 I II III IV 1.8 4.0 4.4 4.6 5.0 0.4 0.6 1.2 1.4 2.4 2.5 1.9 2.5 3.0 2.7 3.5 2.3 2.6 2.6 2.5 2.5 4.2 2.1 4.5 0.9 2.4 2.8 2.5 3.5 2.7 1.6 1.2 4.9 3.7 3.0 2.7 1.3 1.0 1.3 1.5 4.6 4.5 4.3 4.2 1.5 2.9 2.6 2.8 1.0 1.8 2.6 2.9 3.7 2.6 2.8 1.3 2.0 2.1 2.7 2.3 2.2 3.5 1.3 4.3 2.4 2.1 2.5 2.3 1.6 1.8 2.6 2.4 4.6 3.8 4.2 4.3 ANNUAL 2.1 I II III IV ANNUAL See footnotes following table 6. r»revised 3.0 1.9 1.6 August"! Source: Bureau of Labor Statistics Appendix table 2. Nonfann business sector: 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 payments(3) Implicit price deflator(A) Indexes 1977-100 1985 1986 I II III IV 105.4 106.0 106.4 106.5 122.3 123.4 124.4 125.5 116.0 116.4 116.9 117.9 172.3 173.7 175.7 177.9 98.4 98.2 98.7 99.0 163.4 164.0 165.1 167.1 159.2 161.7 163.9 162.7 161.9 163.2 164.7 165.5 ANNUAL 106.1 123.9 116.8 174.9 98.5 164.9 161.9 163.8 108.6 108.4 108.0 107.8 128.1 127.8 128.1 128.8 117.9 117.9 118.6 119.5 179.8 181.2 183.1 185.4 99.6 100.7 101.2 101.8 165.5 167.1 169.5 172.1 166.1 166.6 168.1 164.9 165.7 167.0 169.0 169.5 108.2 128.2 118.5 182.3 100.8 168.6 166.4 167.8 I II III IV' ANNUAL Percent change from previous quarter at annual rate(5) 1985 1986 L7 0.2 5.2 3.7 3.3 3.5 3.0 1.6 1.6 3.4 4.9 3.5 4.5 5.1 1.4 -1.0 2.2 1.0 2.7 1.4 2.8 4.9 1.5 6.5 5.5 -2.9 2.3 3.2 3.7 2.1 ANNUAL 1.4 3.9 2.5 4.2 0.6 2.8 3.5 3.0 I II III IV 8.4 -0.8 -1*5 -0.9 8.5 -0.8 0.8 2.4 0.0 0.0 2.4 3.3 4.3 3.2 4.3 5.1 2.7 4.6 1.9 2.3 -3.8 4.0 5.9 6.1 8.8 1.2 3.6 -7.5 0.4 3.0 5.1 1.2 ANNUAL 2.0 3.5 1.5 4.2 2.3 2.2 2.8 2.4 I II III IV 2.1 2.0 Percent change from corresponding quarter of previous year 1985 1986 I II III IV 1.3 1.2 1.8 1.5 4.4 3.4 3.8 3.9 3.1 2.2 2.0 2.4 4.0 4.2 4.2 4.5 0.4 0.4 0.8 0.9 2.7 2.9 2.4 2.9 4.0 3.4 4.5 2.6 3.2 3.1 3.1 2.8 ANNUAL 1.4 3.9 2.5 4.2 0.6 2.8 3.5 3.0 I II III IV 3.0 2.3 1.5 1.2 4.7 3.6 3.0 1.6 1.2 1.4 4.4 4.3 4.2 1.2 2.6 2.6 1.3 1.9 2.7 4.4 3.1 2.6 2.3 2.3 2.7 2.7 1.4 4.2 2.9 3.0 1.4 2.4 ANNUAL 2.0 3.5 1.5 4.2 2.3 2.2 2.8 2.4 See footnotes following table 6. r* revised August 4 , 1988 Source: Bureau of Labor Statistics -15Appendix table 3. 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(l) Real compensation per hour(2) Unit labor cost Indexes 1977-100 1985 1986 I II III IV 121.1 123.6 124.6 125.3 120.3 121.7 122.6 123.3 99.4 98.5 98.4 98.4 174.0 175.3 177.0 179.4 99.4 99.0 99.4 99.8 143.7 141.8 142.1 143.2 ANNUAL 123.6 122.0 98.7 176.4 99.3 142.7 I II III IV 126.6 127.2 128.0 128.8 124.2 124.1 124.8 125.9 98.1 97.6 97.4 97.7 181.1 182.0 183.6 185.3 100.3 101.2 101.5 101.7 143.0 143.2 143.4 143.8 ANNUAL 127.7 124.7 97.7 183.0 101.2 143.3 Percent change from i previous quarter at annual rate(5) 1985 1986 I II .III " IV 3.9 8.5 3.3 2.5 2.5 4.7 2.8 2.5 -1.3 -3.4 K>.4 0.0 7.0 2.9 3.9 5.7 3.5 -1.6 1.7 1.6 3.1 -5.2 0.6 3.2 ANNUAL 4.6 3.8 -0.8 5.0 1.4 0.3 I II III IV 4.0 1.8 2.8 2.5 2.8 -0.2 2.1 3.7 -1.2 -2.0 -0.7 1.2 3.7 2.2 3.5 3.7 2.0 3.5 1.2 1.0 -0.3 0.3 0.7 1.2 ANNUAL 3.3 2.3 -1.0 3.7 1.9 0.5 Percent changei from corresponding quarter of previous year 1985 1986 I II III IV 4.1 5.5 4.6 4.5 4.9 4.1 3.1 3.1 0.7 -1.3 -1.4 -1.3 5.1 5.2 4.9 4.9 1.5 1.4 1.5 1.3 0.9 -0.3 0.3 0.4 ANNUAL 4.6 3.8 -0.8 5.0 1.4 0.3 I II III IV 4.5 2.9 2.8 2.8 3.2 2.0 1.8 2.1 -1.3 -0.9 -1.0 -0.7 4.0 3.9 3.8 3.3 0.9 2.2 2.1 1.9 -0.5 0.9 0.9 0.5 ANNUAL 3.3 2.3 -1.0 3.7 1.9 0.5 See footnotes following table 6, r» revised August 4, 1988 Source: Bureau of Labor Statistics -16Appendix table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor cost, seasonally adjusted Year and quarter Output p e r hour Output (6) of a l l persons Hours of all persons Compensation per hour(l) Real compensation per hourU) Unit labor cost Indexes 1977-100 1985 1986 I 11 HI IV 125.0 127.8 129.2 130.4 125.9 127.5 128.5 129.5 100.7 99.8 99.4 99.3 172.7 173.5 175.5 178.6 98.6 98.0 98.6 99.3 138.2 135.7 135.8 136.9 ANNUAL 128.1 127.9 99.8 175.0 98.6 136.6 I II III IV 132.2 132.6 133.9 135.1 130.5 130.0 130.7 131.8 98.7 98.0 97.6 97.6 180.3 180.8 182.2 184.2 99.9 100.5 100.7 101.2 136.4 136.3 136.0 136.4 ANNUAL 133.5 130.8 98.0 181.9 100.6 136.3 Percent change from previous quarter at annual rate(5) 1985 1986 II III IV 5.6 9.5 4.5 3.7 4.0 5.4 3.1 3.2 -1.5 -3.7 -1.4 -0.5 8.8 1.8 4.8 7.2 5.2 -2.5 2.4 3.1 3.0 -7.0 0.2 3.4 ANNUAL 6.2 5.8 -0.4 5.2 1.6 -1.0 I II III IV 5.6 1.3 4.1 3.3 3.2 -1.8 2.3 3.6 -2.2 -3.0 -1.7 0.2 3.9 1.2 3.2 4.5 2.2 2.5 0.9 1.8 -1.6 -0.1 -0.9 1.1 ANNUAL 4.2 2.3 -1.8 3.9 2.0 -0.3 I Percent change from corresponding quarter of previous year 1985 1986 II III IV 6.5 7.1 5.8 5.8 8.6 6.5 4.3 3.9 2.0 -0.5 -1.4 -1.8 5.1 5.0 5.1 5.6 1.5 1.2 1.7 2.0 -1.3 -1.9 -0.6 -0.2 ANNUAL 6.2 5.8 -0.4 5.2 1.6 -1.0 I -1.3 0.5 I II III IV 5.8 3.7 3.6 3.6 3.7 1.9 1.7 1.8 -2.0 -1.8 -1.9 -1.7 4.4 4.2 3.8 3.2 1.3 2.6 2.2 1.8 0.2 -0.4 ANNUAL 4.2 2.3 -i.8 3.9 2.0 -0.3 See footnotes following table 6. r* revised August 4, 1988 Source: Bureau of Labor Statistics -17Appendix table 5. Nondurable manufacturing sector: Productivityt hourly compensation, arid unit labor cost, seasonally adjusted Year and quarter Output per hour of all persons Output (6) Hours of all persons Compensation per hour(l) Real compensation per hour (2) Unit labor cost Indexes 1977-100 1985 1986 I II III IV 115.1 117.0 117.4 117.6 112.0 113.0 113.7 114.1 97.3 96.6 96.8 97*0 175.8 177.9 179.1 180.5 100.4 100.5 10Q.6 100.4 152.8 152.0 152.6 153.5 ANNUAL 116.7 113.2 97.0 ;178.3 100.4 152.7 1 II III IV 118.1 118.9 119.2 119.6 114.7 115.4 115.9 117.0 97.1 97.0 97*2 97.9 182.1 184.0 186.0 187.2 100.9 102.3 102.8 102.8 154.3 154.7 156.0 156.5 ANNUAL 118.9 115.8 97.3 184.8 102.2 155.4 Percent change froai previous quarter' at annual rate(5> 1985 1986 I II III IV 1.1 6.9 1.4 0.6 0.1 3.7 2.4 1.3 -1.0 -3.0 1.0 0.7 4.1 4.8 2.8 3.2 0.6 0.3 0.5 -0.8 3.0 -2.0 1.4 2.6 ANNUAL 2.1 0.7 -1.4 4.5 0.9 2.4 I 11 III IV 1.7 3.0 1.0 2.2 2.5 1.8 3.9 0.5 -0.4 0.9 2.6 3.7 4.2 4.4 2.6 2.0 5.6 2.0 -0.1 1.9 1.2 3.4 1.4 ANNUAL 1.9 2.3 0.4 3.7 1.8 1.7 Percent change fro« corresponding quarter of previous year 1985 1986 1 11 III IV 0.4 2.8 2.7 2.4 -0.7 0.4 1.2 1.9 -1.2 -2.4 -1.4 -O.j6 4.8 5.2 4.4 3*7 1.2 1.4 1.1 0.2 4.4 2.3 1.7 1.2 ANNUAL 2.1 0.7 -1.4 4.5 0.9 2.4 1 11 III IV 2.6 1.6 1.5 1.7 2.4 2*1 2.0 2.6 -0.2 0.4 0.4 0.9 3.6 3.5 3.9 3.7 0.5 1.8 2.2 2.4 1.0 1.8 2.3 2.0 ANNUAL 1.9 2.3 0.4 3.7 1.8 1.7 See footnotes following table 6. r-revised August 4 , 1988 Source: Bureau of Labor Statistics T l8- Appendix table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor cost, unit profits, and prices, seasonally adjusted Year Output and per allquarter employee hour 1985 1986 Output Employee Hourly hours compenaation (1) Indexes Real hourly compensatlon(2) 1977-100 Unit labor cost Unit nonlabor cost(7) Total unit cost (8) Unit Implicit pro- price fits deflator (9) (4) I II III IV 107.3 107.3 108.1 108.0 124.3 124.9 126.2 126.7 115.9 116.4 116.7 117.3 170.1 171.3 173.1 175.3 97.1 96.8 97.3 97.5 158.5 159.7 160.1 162.3 174.9 176.5 175.3 176.3 162.6 164.0 163.9 165.8 129.3 129.5 140.8 132.4 158.6 159.8 161.2 161.8 ANNUAL 107.7 125.5 116.6 172.5 97.1 160.2 175.8 164.1 133.0 160.4 I II III IV 109.5 109.3 109.6 110.3 128.8 128.3 128.9 130.4 117.6 117.3 117.6 118.1 177.1. 178.5 180.2 182.2 98.1 99.2 99.6 100.1 161.7 163.3 164.3 165.1 176.7 176.9 180.3 179.6 165.5 166.7 168.4 168.8 133.7 132.7 133.6 129.7 161.7 162.6 164.2 164.1 ANNUAL 109.7 129.1 117.7 179.5 99.2 163.6 178.4 167.3 132.4 163.2 Percent change from previous quarter at annual rate(5) 1985 1986 o 5 I II III IV 3.6 -0.2 3.3 -0.5 1 -4.3 3.6 -2.7 2.4 -0.4 3;3 -0.1 4.7 -13.8 0.7 39.7 -1.8 i.o 1.1 3.2 0.9 5.6 -22 ;o 1.6 4.0 0.5 2.4 1.2 2.1 -2.6 1.6 4.3 3.2 3.8 4.6 : 2.6 - 4.5 1.5 1.9 -1.4 4.0 2.6 2.0 1.0 0.3 8.0 -1.6 -0.8 3.0 4.0 i.o 4.0 -3.0 2.9 -11.2 -0.3 2.4 3.9 -0.2 4.0 2.2 2.2 1.5 2.0 -0.5 1.7 5.5 1.7 4.3 1.7 1.9 1.9 1.0 2.2 4.7 3.0 4.2 5.1 1.2 -1.4* 1.9 4.0 2.3 ANNUAL 1.6 I II III IV 5.7 -0.8 1.2 r 2.6 6.6 -1.7 2.1 4.6 0.8 -0.9 0.8 2.0 ANNUAL 1.8 2.8 1.0 3l3 Percent change from corresponding quart*r of previous year 1985 1986 I II III IV 1.6 1.1 2.2 1.5 5.0 3.5 4.1 3.3 3.3 2.4 1.8 1.7 3.9 4.0 4.0 4.2 0.3 0.2 0.6 0.7^ 2.2 2.9 i.7 2.7 2.9 2.6 0.0 -0.3 2.4 2.8 1.2 1.9 -4.8 -9.0 5.4 -1.4 1.6 1.5 1.6 1.5 ANNUAL 1.6 4.0 2.3 4.0 0.5 2.4 1.2 2.1 -2.6 1.6 2.1 1.9 1.4 2.2 3.6 2.7 2.1 2.9 1.5 0.8 0.7 0.7 4.1 4.2 4.1 4.0 1.0 2.5 2.4 2.6 2.0 2.2 2.6 1.8 1.0 0.2 2.9 1.9 1.8 1.7 2.7 1.8 3.4 2.4 -5.1 -2.0 1.9 1.7 1.9 1.4 1.8 2.8 1.0 4.0 2.2 2.2 1.5 2.0 -0.5 1.7 I II III IV ] ANNUAL See footnotes following table 6. r-revised August 4, 1988 Source: Bureau of Labor Statistics