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News Bureau of Labor Statistics Historical, technical information: (202) 523-9261 Current data : (202) 523-1221 or 1208 Media contact: (202) 523-1913 United States Department of Labor Washington, D.C. 20212 USDL 90-455 Wire embargo until 10:00 AM EOT Tuesday, September 4, 1990 PRODUCTIVITY AND COSTS Second Quarter 1990 Business, Nonfarm Business, Manufacturing, and Nonfinancial Corporations The Bureau of Labor Statistics of the U.S. Department of Labor today reported revised productivity results—as measured by output per hour of all persons—for the second quarter of 1990. Based on information now available, the seasonally-adjusted annual rates of productivity change in the second quarter were: 1.7 percent in the business sector, 1.5 percent in the nonfarm business sector, 4.0 percent in manufacturing, 7.3 percent in durable goods manufacturing, and -1.4 percent in nondurable goods manufacturing. For business and nonfarm business, the revised productivity and output measures show smaller increases than had been reported on August 6, based on preliminary information then available (table C). In manufacturing, productivity growth was revised upward. The revisions reflect the latest measures of output and hours growth during the second quarter of 1990. Second-quarter measures are summarized in table A and appear in detail in tables 1 through 6. In business and nonfarm business, productivity rose, reversing the declines of the first quarter. Productivity grew more slowly in manufacturing than during the first quarter, and gains were confined to the durables-goods sector. In nonfinancial corporations, productivity rose 1.7 percent in the second quarter, as output rose 1.6 percent and hours edged down 0.1 percent (tables B and 6). Business Productivity increased at a 1.7 percent annual rate during the second quarter of 1990 in the business sector, as output rose 1.4 percent and hours of all persons engaged in the sector declined 0.3 percent (seasonally adjusted annual rates). Employment growth slowed to its lowest rate since 1982, and average weekly hours declined. During the first quarter of 1990, business productivity had declined 1.5 percent, as hours grew more rapidly than output (table 1). Table A. Productivity and costs: Second-quarter 1990 measures (Seasonally adjusted annual rates) Sector Productivity Output Hours Hourly compensation Real hourly compensation Unit labor costs Percent change from preceding quarter 1.7 Business Nonfarm business 1.5 Manufacturing 4.0 7.3 Durable -1.4 Nondurable 1.4 1.5 -0.3 0.0 6.1 5.8 2.4 2.0 4.4 4.3 4.0 6.8 -0.6 0.1 -0.5 6.3 6.9 2.5 3.1 2.2 -0.4 0.8 5.4 1.6 6.9 Percent change from same quarter a year ago -0 .8 Business Nonfarm business -0 .9 2 .6 Manufacturing Durable 3 .0 2 .0 Nondurable 0 .4 0 .4 0.7 0 .6 1.1 1 .2 1 .2 -1 .8 -2 .4 -0 .9 3 .4 3 .4 3 .6 3 .7 3.7 -1 .2 -1 .2 -1 .0 -0 .9 -0 .9 4.3 4.3 1.0 0.7 1.6 Hourly compensation increased at a 6.1 percent annual rate during the second quarter of 1990, compared with a 3.8 percent increase during the first quarter. This was the largest gain in hourly compensation since a 7.0 percent increase in the fourth quarter of 1987. This measure includes wages and salaries, supplements, employer contributions to employee-benefit plans, and taxes. Unit labor costs, which reflect changes in hourly compensation and productivity, increased at a 4.4 percent annual rate during the second quarter, compared with a 5.3 percent increase one quarter earlier. Real hourly compensation, which takes into account changes in the Consumer Price Index for All Urban Consumers (CPI-U), rose 2.4 percent in the second quarter, compared with a 4.0 percent decline in the first quarter. This was the first quarter in which real hourly compensation increased since the third quarter of 1988, The implicit price deflator for business output, which reflects changes in unit labor costs and unit nonlabor payments, increased 4.5 percent in the second quarter. Nonfarm business Productivity increased 1.5 percent in the nonfarm business sector during the second quarter of 1990, as output grew 1.5 percent and hours of all persons—employees, proprietors, and unpaid family workers—were unchanged from the first quarter. During the first quarter, nonfarm productivity had decreased 1.9 percent (table 2). Hourly compensation rose 5.8 percent in the second quarter, and real compensation per hour rose 2.0 percent when the increase in the CPI-U was taken into account. (During the first quarter, these measures increased 3.2 percent and declined 4,5 percent, respectively.) Unit labor costs increased 4.3 percent, compared with a 5.2 percent rise during the first quarter. The implicit price deflator for nonfarm business output rose 4.6 percent in the second quarter, compared with a 3.8 percent increase in the first quarter. Manufacturing Manufacturing productivity increased more rapidly than in the more comprehensive business sectors reported above, growing at a 4.0 percent seasonally adjusted annual rate in the second quarter of 1990. Output rose 4.0 percent and hours of all persons increased 0.1 percent (table 3). All of the productivity gain occurred in durable goods industries, where output rose 6.8 percent, average weekly hours declined 0.5 percent, and employment rose 0.1 percent (table 4). During the first quarter, productivity in all of manufacturing had increased 5.1 percent, as output increased 1.8 percent and hours declined 3.1 percent (table 3). Hourly compensation of manufacturing workers increased 6.3 percent during the second quarter, and real hourly compensation rose 2.5 percent when the increase in consumer prices was taken into account. This increase in real hourly compensation was the largest since the first quarter of 1988, when a 3.2 percent increase occurred. Unit labor costs rose at a 2.2 percent annual rate in the second quarter of 1990, compared with a 2.5 percent decrease during the first quarter. Nonfinancial corporations Preliminary second-quarter 1990 measures of productivity and costs also were announced today for nonfinancial corporations (tables B and 6). Output per all-employee hour increased 1.7 percent from the first quarter to the second quarter of 1990, as output increased 1.6 percent and hours declined 0.1 percent, at annual rates. The sector includes all corporations doing business in the United States, except banks, stock and commodity brokers, and finance and insurance agencies. Table B. Nonfinancial corporations: Preliminary second-quarter productivity and cost measures Seasonally adjusted annual rates Period Productivity Output Hours Hourly compensation Real hourly compensation Unit labor costs Unit profits Implicit price deflator Percent change from preceding quarter 1990 II 1.7 1.6 -0.1 5.9 2.1 4.2 15.1 4.5 -6.1 3.6 Percent change from preceding year 1990 II -1.0 0.1 1.1 3.0 -1.5 4.1 Hourly compensation increased 5.9 percent, and real hourly compensation increased 2.1 percent when the rise in the CPI-U was taken into account (table 6). Unit labor costs rose 4.2 percent in the second quarter, unit nonlabor costs rose 2.2 percent, and unit profits rose 15.1 percent. The implicit deflator for nonfinancial corporate output rose 4.5 percent in the second quarter. Revised measures Previous and current productivity and cost measures for the second quarter are compared in table C for business, nonfarm business, and manufacturing. Measures of both output and hours were revised, and productivity gains in business and nonfarm business are smaller than previously reported, but the advance in manufacturing productivity is somewhat larger than had been reported on August 6. Measures of hours of all persons which underlie productivity and cost series will be revised after BLS employment data, benchmarked to April 1988 through March 1989 Unemployment Insurance records, are announced on September 7. This new information will be incorporated in the November 6 edition of Productivity and Costs. At that time, new seasonal adjustment factors, conversion to the 1987 structure of the Standard Industrial Classification codes, and results of the 1989 Hours at Work Survey also will be introduced. Table C. Previous and current productivity and related measures, second-quarter 1990 (Quarterly percent change at seasonally adjusted annual rate) Sector Productivity Output Hours Hourly compensation Real hourly compensation Unit labor costs Business : Previous Current 1.9 1.7 1.51.4 -0.4 -0.3 5.9 6.1 2.2 2.4 4.0 4.4 Nonfarm business: Previous Current 1.6 1.5 1.5 1.5 -0.1 0.0 5.6 5.8 1.8 2.0 3.9 4.3 Manufacturing: Previous Current 3.7 4.0 3.7 4.0 0.0 0.1 6.4 6.3 2.6 2.5 2.6 2.2 Next release date The next issue of Productivity and Costs is scheduled for release at 10:00 AM EST, Tuesday, November 6, 1990, and will contain third-quarter measures for business, nonfarm business, and manufacturing. TECHNICAL NOTES Labor Input: The primary source of hours and employment data is the BLS Current Employment Statistics (CES) program, which provides monthly survey data on total employment and average weekly hours of production and nonsupervisory workers in nonagricultural establishments. Jobs rather than persons are counted. Weekly hours are adjusted to the hours at work definition using the BLS Hours at Work Survey, conducted for this purpose. Data from the BLS Current Population Survey (CPS) are used for farm labor; in the nonfarm sector, the National Income and Product Accounts (NIPA), prepared by the Bureau of Economic Analysis of the U.S. Department of Commerce and the CPS are used to measure labor input for government enterprises, proprietors, unpaid family workers, and paid employees of private households. Output: Business sector output is equal to gross national product (GNP) 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 NIPA. Corresponding exclusions also are made in labor inputs. Business output was about 81 percent of GNP in 1988. Nonfarm business, which also excludes farming, was about 79 percent of GNP in 1988. Total manufacturing measures are computed by summing series prepared for the durable and nondurable goods sectors. Durables include the following 2digit 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. Nondurables include: Textile mill products, apparel products, leather and leather products, printing and publishing, chemicals and chemical products, petroleum products, rubber and plastic products, food, and tobacco products. Manufacturing accounted for about 22 percent of GNP in 1988. Nonfinancial corporate output is equal to GNP 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, unincorporated business, the output of corporations engaged in banking, finance, stock and commodity trading, and credit and insurance agencies, and the statistical discrepancy in computing the NIPA. Nonfinancial corporations accounted for about 60 percent of GNP in 1988. PRODUCTIVITY: These productivity measures describe the relationship between real output 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 at work of all persons engaged in a sector, they do not measure the specific contribution 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. 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 (1) Real compensation per hour (2) Unit labor cost Implicit Unit nonlabor pay- price ment s ( 3 ) deflator (4) Indexes 1982*'100 IV 113.3 113.3 112.8 112.3 135.6 135.9 136.1 135.5 119.7 120.0 120.6 120.7 132.2 133.0 133.4 134.3 104.6 103.7 103.3 103.0 116.7 117.4 118.2 119.6 130.8 133.2 133.8 134.4 121.2 122.5 123.3 124.3 ANNUAL 112.8 135.8 120.4 133.1 103.5 118.0 133.1 122.8 1990 I II 111.9 rl!2.3 136.0 136.4 121.5 121.4 135.5 137.5 101.9 102.5 121.1 r!22.4 135.5 r!37.0 125.8 127.1 1989 I II III IV 0.5 0.0 -1.5 -2.0 3.5 0.9 0.6 -1.8 3.0 0.9 2.1 0.1 2.'0 2.4 1.3 2.6 -3.3 -3.4 -1.5 -1.4 1.5 2.5 2.8 4.6 6.3 7.7 1.8 1.6 3.1 4.3 2.5 3.5 ANNUAL -0.2 2.1 2.3 3.0 -1.7 3.2 5.2 3.9 I II -1.5 rl.7 1.4 rl.4 2.9 r-0.3 3.8 r6.1 -4.0 r2.4 5.3 r4.4 3.3 r4.7 4.6 r4.5 1969 I II III Percent change from previous quarter at annual rate (5) 1990 Percent change from corresponding quarter of previous year 1989 1990 I II III IV 0.1 0.4 -0.6 -0.7 3.4 2.5 1.7 0.8 3.3 2.0 2.3 1.5 4.1 3.4 2.4 2.1 -0,6 -1.7 -2.2 -2.4 4.0 3.0 2.9 2.8 5.1 6.6 5.1 4.3 4.4 4.2 3.7 3.4 ANNUAL -0.2 2.1 2.3 3.0 -1.7 3.2 5.2 3.9 I II -1.2 -0.8 0.3 0.4 1.5 1.2 2.5 3.4 -2.6 -1.2 3.8 r4.3 3.6 r2.8 3.7 3.8 See footnotes following table 6. r-revised September 4, 1990 Source: Bureau of Labor Statistics Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor seasonally adjusted Real CompensaHours compensaUnit Year Output per Output of all tion per labor tion per and hour of persons hour (2) cost hour (1) quarter all persons cost, and prices, Unit nonlabor payments (3) Implicit price deflator <4) Indexes 1982-100 1989 1990 I II III IV 112.4 112.2 112.0 111.4 136.4 136.8 137.1 136.3 121.4 121.9 122.4 122.4 131.4 131.9 132.5 133.4 104.0 102.9 102.6 102.3 116.9 117.5 118.3 119.8 130.9 133.9 134.7 135.3 121.4 122.7 123.5 124.7 ANNUAL 111.9 136.7 122.2 132.1 102.8 118.1 133.7 123.0 110.8 rill. 2 136.8 137.3 123.5 r!23.5 134.4 136.3 101.1 101.6 121.3 rl22.6 135.7 r!37.5 125.8 r!27,3 I II Percent change from previous quarter at annual rate (5) 1989 1990 I II III IV -1.7 -0.5 -0.8 -2.2 1.2 1.3 0.6 -2.1 3.0 1.7 1.5 0.1 2.0 1.5 1.8 2.7 -3.3 -4.2 -1.0 -1.3 3.8 2.0 2.7 5.1 1.0 9.3 2.6 1.6 2.8 4.4 2.6 3.9 ANNUAL -0.3 2.0 2.4 3.0 -1.8 3.3 5.0 3.9 -1.9 rl.5 1.4 1.5 3.4 rO.O 3.2 r5,8 -4.5 r2.0 5.2 r4.3 1.2 r5.4 3.8 4.6 I II Percent change from corresponding quarter of previous year 1989 1990 I II III IV 0.2 0.3 -0.6 -1.3 3.6 2.6 1.7 0.3 3.4 2.3 2.3 1.6 4.1 3.2 2.4 2.0 -0.6 -1.8 -2.2 -2.4 3.9 3.0 3.0 3.4 4.4 6.4 5.8 3.6 4.1 4.1 3.9 3,4 ANNUAL -0.3 2.0 2.4 3.0 -1.8 3.3 5.0 3.9 I II -1.4 r-0.9 0.3 0.4 1.7 1.2 2.3 r3.4 -2.8 r-1.2 3.7 r4.3 3.6 r2.7 3.7 3.7 See footnotes following table 6. r-revised September 4, 1990 Source: Bureau of Labor Statistics 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 1982=100 1989 I II III IV rl30.1 130,9 130.5 131.3 143.7 144.5 144.0 143.5 110.5 110.4 110.4 109.3 126.5 126.6 127.6 128.4 rlOO.2 98.7 98.8 98.5 97.3 96.7 97.8 97.8 ANNUAL 130.1 144.0 110.6 126.7 98.6 97.4 I II 133.0 rl34,3 144.2 r!45.6 108.4 108.4 129.2 131.2 97.2 97.8 97.1 97.7 1990 Percent change from previous quarter at annual rate (5) 1989 I II III IV 2.6 2.6 -1.4 2.8 3.1 2.4 -1.4 -1.3 0.5 -0.2 -0.1 -4.0 2.6 0.1 3,2 2.7 -2.7 -5.6 0.3 -1.3 0.0 -2.5 4.6 -0.1 ANNUAL 2.0 2.9 0.9 2.7 -2.0 0.7 I II 5.1 r4.0 1.8 r4.0 -3.1 rO.l 2.5 r6.3 -5.2 r2.5 -2.5 r2.2 1990 Percent change from corresponding quarter of previous year I II III IV 2.6 2,6 1.3 1.6 4.9 4.1 2.1 0.7 2.3 1.4 0.8 -1.0 3,4 2.9 2.6 2.1 -1.3 -2.2 -1.9 -2.4 0.8 0.2 1.3 0.5 ANNUAL 2.0 2.9 0.9 2.7 -2.0 0.7 I II 2.3 r2.6 0.4 0.7 -1.9 -1.8 2.1 r3.6 -3.0 r-1.0 -0.2 rl.O 1989 1990 See footnotes following table 6. r-revised September 4, 1990 Source: Bureau of Labor Statistics 10 Table 4. Durable 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 Compensa*tion per hour(l) Real compensation per hour (2) Unit labor cost Indexes 1982-100 I II III IV 142.9 144.8 144.7 144.8 159.7 160.8 160.2 158.5 111.8 111.0 110.7 109.4 125.6 125.5 126.8 127.5 99.4 97.9 98.2 97.8 87.9 86.7 87.6 88.0 ANNUAL 143.3 159.8 111.5 125.4 97.6 87.5 I II 146.6 r!49.2 159.1 r!61.7 108.5 108.4 128.0 130.2 96.3 97.0 87.3 r87.3 1989 1990 Percent change from previous quarter at annual rate (5) 2.0 5.5 -0.4 0.5 2.2 2.8 -1.7 -4.1 0.2 -2.6 -1.2 -4.6 3.6 -0.1 r4.1 2.3 -1.7 -5.8 1.2 -1.7 1.6 -5.3 4.5 1.8 ANNUAL 2.5 3.1 0.6 2.9 -1.8 0.4 I II r4.9 r7.3 1,6 r6.8 -3.2 r-0.5 1.7 r6.9 -5.9 r3.1 -3.1 r-0.4 I II III IV 1989 1990 Percent change from corresponding quarter of previous year 1989 I II III IV 2.6 3.3 2.3 1.9 5.9 4.5 2.3 -0.2 3.2 1.2 0.0 -2.1 3.0 3.1 3.3 2.5 -1.7 -1.9 -1.3 -2.0 0.4 -0.1 1.0 0.6 ANNUAL 2.5 3.1 0.6 2.9 -1,8 0.4 I II 2.6 r3.0 -0.4 rO.6 -2.9 -2.4 2.0 3.7 -3.1 -0.9 -0.6 rO.7 1990 See footnotes following table 6. r-revised September 4, 1990 Source: Bureau of Labor Statistics 11 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 1982*100 in IV 112 .6 112 .2 111 .4 113 .3 122.3 122.8 122.5 123.7 108 .6 109 .5 110 .0 109 .1 127.9 128.2 128.8 129.9 101 .2 100 .0 99 .7 99 ,6 113 .6 114 .3 115 .6 114 .6 ANNUAL 112 .3 122.8 109 .3 128.6 100 .1 114 .5 I II 114 .9 rl!4 .4 124.3 124.2 108 .3 r!08 .5 131.1 rl32,8 98 .6 r99 .0 114 .2 116 ,1 1989 I II 1990 Percent change from previous quarter at annual rate (5) 1989 IV 3.7 -1 .5 r-2 .7 7.1 4.7 1.8 -1.0 3.7 0.9 r3 .3 1.7 -3 .2 0.9 0.8 2.0 3.4 -4 .3 -4 .9 r-0 .9 -0 .6 -2 .7 2 .4 4.7 -3 .4 ANNUAL 1.3 2.7 1.4 2.4 -2 .3 1.1 I II *5 .4 r-1 .4 2.3 -0.6 -3 .0 rO .8 3.9 r5.4 -3 .9 rl .6 -1 .5 6.9 -0 .8 -2 .6 -2 .8 -2 .7 1.5 0,8 2.0 0.2 I « III 31990 Percent change from corresponding quarter of previous year 19$9 I II III IV 2.4 1.6 -0 .3 1.6 3.4 3.4 1.8 2.3 1.0 1.7 2.0 0.7 3.9 2.4 1.7 1.8 ANNUAL 1.3 2.7 1.4 2.4 -2 .3 1.1 I II 2.0 r2 .0 1.7 1.1 -Q .3 r-0 .9 2.5 3.7 -2 .6 -0 .9 0.5 1.6 1990 See footnotes following table 6. r-revised September 4, 1990 Source: Bureau of Labor Statistics 12 Table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor cost, unit prpfits, and prices, seasonally adjusted Year and quarter Output per allemployee hour Output Employee Hourly Real hours compensa- hourly tion compen(1) satlon(2) Unit labor cost Unit nonlabor cost (7) Total unit cost <8) Unit Implicit pro- price fits deflator (9) (4) Indexes 1982*100 1989 I II III IV ANNUAL 1990 I II 112.5 112.1 112.3 111.1 136.2 136.4 137.1 135.9 121.1 121.7 122.1 122.3 128.9 129.4 130.0 130.7 102.0 100.9 100.7 100.2 114.6 115.4 115.7 117.6 108.0 110.6 113.3 115.2 112.7 114.1 115.0 117.0 162.3 162.9 159.3 147.2 115.9 117.1 117.8 118.9 111.9 136.4 121.9 129.6 100.9 115.8 111.8 114.7 157.9 117.4 110.5 111.0 136.0 136.5 123.0 123.0 131.4 133.3 98.8 99.3 118.9 120.1 116.2 116.8 118.1 119.2 147.6 152.9 120.0 121.3 Percent change from previous quarter at annual rate (5) 1989 I II III IV ANNUAL 1990 I II -2.5 -1.4 0.8 -4.2 -0.1 0.6 2.1 -3.6 2.4 2.0 1.3 0.7 3.3 1.4 1.8 2.4 -2.0 -4.3 -1.0 -1.6 5.9 2.8 1.0 6.9 9.5 9.9 10.2 6.9 6.8 4.7 3.5 6.9 -32.5 1.5 -8.5 -27.1 2.4 4.4 2.4 3.6 -1.3 1.1 2.5 3.0 -1.7 4.4 7.7 5.3 -10.4 3.7 -2.2 1.7 0.2 1.6 2.5 -0.1 2.1 5.9 -5.5 2.1 4.4 4.2 3.3 2.2 4.1 3.6 1.2 15.1 3.9 4.5 Percent change from corresponding quarter of previous year 1989 1990 I II III IV -1.1 -1.4 -1.0 -1.8 2.3 1.4 1.3 -0.3 3.4 2.8 2.3 1.6 4.1 3.3 2.5 2.2 -0.6 -1.8 -2.1 -2.2 5.3 4.7 3.5 4.1 5.3 7.4 8.7 9.2 5.3 5.4 4.9 5.5 -8.1 -8.5 -7.0 -17.8 4.0 4.0 3.8 3.2 ANNUAL -1.3 1.1 2.5 3.0 -1.7 4.4 7.7 5.3 -10.4 3.7 I II -1.8 -1.0 -0.2 0.1 1.6 1.1 1.9 3.0 -3.1 -1.5 3.8 4.1 7.6 5.6 4.8 4.5 -9.0 -6.1 3.6 3.6 See footnotes following table 6. r-revised September 4, 1990 Source: Bureau of Labor Statistics 13 SOURCE: Output data from the 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 third revisions after an additional 60 days. In the business sector, the probability is 0.95 that the third publication (third revision) of a quarterly index of output per hour of all persons will differ from the initial value by between -1.8 and +2.1 index points. This interval is based on the performance of this measure between the second quarter of 1976 and the third quarter of 1988. Footnotes, Tables 1-6 (1) Wages and salaries of employees plus employers9 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 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 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 inventory valuation and capital consumption adjustments.
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