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News Bureau of Labor Statistics United States Department of Labor Washington, D.C. 20212 Historical, technical information: (202) 606-5606 Current data: (202) 606-7828 Media contact: (202) 606-5902 USDL 93-376 Transmission of this material is embargoed until 10:00 A.M. EDT Thursday, September 9, 1993. PRODUCTIVITY AND COSTS Second Quarter 1993 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 second quarter of 1993. The revised seasonally-adjusted annual rates of productivity change in the second quarter were: -1.0 percent in the business sector, and -L3 percent in the nonfann business sector. In both sectors, output and hours rose more rapidly in the second quarter than in the first; because hours increased more rapidly than output, productivity declined. In manufacturing, productivity changes in the second quarter were: 5.2 percent in manufacturing, 7.7 percent in durable goods manufacturing, and 1.9 percent in nondurable goods manufacturing. The productivity advance in manufacturing reflects a strong output gain in the durable goods industries. Output and hours in manufacturing, which includes about 20 percent of U.S. business-sector employment, tend to fluctuate more from quarter to quarter than in the business and nonfarm business sectors. Second-quarter measures are summarized in table A and appear in detail in tables 1 through 5. Output measures for business and nonfarm business are based on measures of gross domestic product prepared by the Bureau of Economic Analysis of the U.S. Department of Commerce. Quarterly output measures for manufacturing reflect independent indexes of industrial production prepared by the Board of Governors of the Federal Reserve System. See Technical Notes for further information on data sources (page 5). These measures reflect the regular 3-year GDP revisions announced by the Bureau of Economic Analysis of the U.S. Department of Commerce on August 31. See Revised Measures, page 4. The revised measures are shown in appendix tables 1-5. Table A. Productivity and costs: Revised second-quarter 1993 measures (Seasonally adjusted annual rates) Sector Productivity Output Hours Real Hourly hourly Unit compen- compen- labor sation sarion costs Percent change from preceding quarter Business Nonfarm business Manufacturing Durable Nondurable -1.0 -1.3 5.2 7.7 1.9 2.8 3.1 2.8 4.1 1.1 3.8 4.5 -2.3 -3.4 -0.8 2.0 1.4 3.3 2.3 5.0 -0.9 -1.5 0.4 -0.6 2.0 3.1 2.8 -1.8 -5.0 3.0 Percent change from same quarter a year ago Business Nonfarm business Manufacturing Durable Nondurable 1.3 1.1 5.2 8.0 1.5 3.4 3.5 4.3 6.5 1.3 2.0 2.4 -0.9 -1,4 -0.2 4.0 3.7 2.7 2.6 3.0 0.8 0.5 -0.4 -0.5 -0.1 2.7 2.5 -2.4 -5.0 1.5 From the first quarter to the second quarter of 1993, business sector productivity decreased at a 1.0 percent annual rate, the second quarterly decline in succession. Output rose 2.8 percent and hours of all persons engaged in the sector increased 3.8 percent (seasonally adjusted annual rates). This was the largest increase in hours since the first quarter of 1989. During the first quarter of 1993, productivity had gone down 1.6 percent (as revised), as output and hours rose 0.5 and 2.1 percent, respectively (table 1). Hourly compensation increased 2.0 percent during the second quarter of 1993, compared with a 3.2 percent rise in the first quarter. 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 3.1 percent annual rate during the second quarter. During the previous quarter, these costs had increased 4.9 percent. Real hourly compensation, which takes into account changes in the Consumer Price Index for All Urban Consumers (CPI-U), declined at a 0.9 percent annual rate in the second quarter, it had fallen 0.6 percent in the first quarter of 1993. The implicit price deflator for the business sector, which reflects changes in unit labor costs and unit nonlabor payments, increased 2.5 percent in the second quarter, compared with a 2.7 percent increase during the first quarter of 1993. Nonfarm business Productivity fell 1.3 percent in the nonfarm business sector during the second quarter of 1993 as output rose 3.1 percent and hours of all persons increased 4.5 percent. As in the more comprehensive business sector, this was the second productivity decline in a row, and the gain in hours was the largest since the first quarter of 1989. During the first quarter of 1993, productivity had fallen 1,8 percent (as revised) in the nonfarm business sector, reflecting gains of 0.7 percent in output and 2.6 percent in hours (table 2). Hourly compensation increased at a 1.4 percent annual rate in the second quarter, compared with a 2.8 percent increase one quarter earlier. When the rise in the CPI-U is taken into account, real hourly compensation fell 1.5 percent in the second quarter. Unit labor costs rose 2.8 percent, compared with a 4.7 percent rise during the first quarter of 1993. The implicit price deflator for nonfarm business output rose 2.4 percent in the second quarter, about the same as the 2.5 percent rise one quarter earlier. Manufacturing Productivity increased at a 5.2 percent seasonally adjusted annual rate in manufacturing in the second quarter of 1993, as output rose 2.8 percent and hours of all persons decreased 2.3 percent (seasonally adjusted annual rates). Productivity grew strongly in durable goods industries while posting a smaller gain among nondurable goods producers. Output gains in durable goods manufacturing were much greater than in nondurable goods industries, a pattern that has been evident for the last 6 quarters (tables 4 and 5). Hourly compensation of all manufacturing workers increased 3.3 percent during the second quarter, compared with a 2.4 percent decline during the January-March period. Real hourly compensation rose 0.4 percent in the second quarter when the increase in consumer prices is taken into account. During the first quarter, real hourly compensation had declined 6.0 percent (seasonally adjusted annual rates). Unit labor costs fell at a 1.8 percent annual rate in the second quarter of 1993, the sixth decline in the past 8 quarters. These costs had decreased 7.0 percent during the first quarter of 1993. Table B. Previous and revised productivity and related measures Quarterl y^percem change at seasonally adjusted annual rate Sector Productivity Output Hours Real Hourly hourly compen- compensation sation Unit labor costs Second quarter 1993 Business: Previous Current , -2.1 -1.0 1.5 2.8 3.6 3.8 2.2 2.0 -0.7 -0.9 4.4 3.1 Nonfarm business: Previous . -2.5 Current -1.3 1.7 3.1 4.3 4.5 1.6 1.4 -1.3 -1.5 4.2 2.8 Manufacturing: Previous Current 2.7 2.8 -2.2 -2.3 4.7 3.3 1.7 0.4 -0.3 -1.8 . 5.0 5.2 Revised Measures Current and previous measures for the second quarter of 1993 for the business, nonfarm business, and manufacturing sectors are compared in table B. The quarterly movements differ from those reported on August 10 based on information then available. Output and compensation measures for business and nonfarm business are based on revised Gross Domestic Product (GDP) component measures published by the Bureau of Economic Analysis of the U.S. Department of Commerce on August 31 (BEA 93-38). These estimates reflect revisions to the national income and product accounts beginning with the first quarter of 1990. The BEA stated: "Revisions are usually made each summer mainly to incorporate new source data and updated seasonal adjustment factors. [The revision] includes the revised quarterly estimates of GDP, corporate profits, and personal income ..." The current BEA revisions did not affect manufacturing output measures, however compensation measures for manufacturing have been revised by BEA as pan of the GDP revision. Appendix tables 1-5 show the results of these revisions. Revised measures for the nonfmancial corporate sector, usually available at this time, will be announced later by BEA and included in the next issue of Productivity and Costs. Next release date The next release of Productivity and Costs is scheduled for 10:00 AM EOT, Thursday, November 4,1993. Second-quarter measures for nonfmancial corporations and preliminary third-quarter measures for business, nonfarm business, and manufacturing will be released at that time. 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 Department of Commerce and the CPS are used to measure labor input for government enterprises, proprietors and unpaid family workers. Output: Business sector output is equal to gross domestic product (GDP) in constant 1987 dollars, less 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 are also made in labor inputs. Business output was about 78 percent of GDP in 1992. Nonfarm business, which also excludes farming, was about 77 percent of GDP in 1992. Total manufacturing measures are computed by summing series prepared for the durable and nondurable goods sectors. Durables include the following 2-digit SIC industries: Primary metal industries; fabricated metal products; nonelectrical machinery; industrial and commercial machinery and computer equipment; electronic and other electrical equipment; transportation equipment; instruments; lumber and lumber products; furniture and fixtures; stone, clay, and glass and concrete products; and miscellaneous manufactures. Nondurables include: Food and kindred products, tobacco products, textile mill products, apparel products, paper and allied products, printing and publishing, chemicals and chemical products, petroleum refining and related industries, rubber and plastic products, leather and leather products. Manufacturing accounted for about 19 percent of GDP in 1992. Quarterly manufacturing output measures are based on the index of industrial production prepared monthly by the Board of Governors of the Federal Reserve System 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, Nonfmancial corporate output is equal to GDP in constant 1987 dollars, less the 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 56 percent of GDP in 1992. 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. Information in this release will be made available to sensory-impaired individuals upon request. Voice phone: 202-523-1221; TDD phone: 202-523-3936; TDD message referral phone number: 1-800-326-2577. Table 1. Business sector: Productivity, hourly compensation, unit labor costs, and prices, seasonally adjusted Real Unit compensaCompensaHours Output per Year labor tion per tion per of all hour of and costs hour (2) hour (1) persons all persons Output quarter Unit nonlabor payments (3) Implicit price deflator (4) Indexes 1982-100 I II III IV 1993 rl!4.3 rllS.O r!16.2 rl!7.3 r!33.4 r!34.5 r!36.1 r!37.9 ANNUAL 1992 r!15.6 rl!6.8 rl!6,5 r!38.1 r!39.0 ii7.o 117.1 117.6 118.2 119.3 r!52.3 r!53.9 r!56.3 rlSS.O r!05.9 r!06.1 r!07.1 r!07.4 r!33.3 r!33.8 r!34.5 r!34.7 r!48.6 rlSO.O r!47.4 r!52.7 r!38. r!39, r!38. r!40.6 rlSS.l r!35.4 I II 116.7 r!06.7 r!34.2 r!49.€ r!39.2 .3 rlS9. r!60, .1 r!07.3 r!07.0 136.3 r!37.4 r!52.2 r!52.8 .6 r!41. r!42 .4 Percent change from previous quarter at annual rate(5) 1993 I II III IV r4.9 r2.5 r4.3 r3.8 r2.9 r3.4 r4.6 r5.6 -1.9 rO.8 0.3 1.8 r5.9 r4.2 r6.3 r4.6 r2.5 rl.l r3.5 rl.4 rO.9 rl.6 rl.9 rO.8 r7.8 r3.8 r-6.8 rl5.2 r3.3 2.4 r-1.2 r5.6 ANNUAL 1992 r3.4 r2.9 -0.5 r5.2 r2.1 rl.7 r3.3 r2.3 I II r-1.6 r-1.0 0.5 r2.8 r2.1 r3.8 r3.2 r2.0 r-0 .6 r-0 .9 r4.9 r3.1 r-1,.3 r l ,.5 2.7 r2.5 Percent change from corresponding quarter of previous year 1993 I II III IV r3.0 r3.0 r3.9 r3.9 rl.8 r2.3 r3.4 r4.1 -1.2 -0.7 -0.5 rO.2 r5.1 r5.0 r5.4 r5.2 r2.2 rl.8 r2.3 r2.1 r2.1 rl.9 rl.5 rl.3 r3.6 r3.4 rl.6 r4.7 r2.6 r2.4 rl.5 r2.5 ANNUAL 1992 r3.4 r2.9 -0.5 r5.2 r2.1 rl.7 r3.3 r2.3 I II r2.2 rl.3 r3.5 r3.4 1.3 r2.0 r4.6 r4 .0 rl.3 rO.8 r2.3 r2.7 r2.4 rl.9 r2.3 r2.4 See footnotes following table 5. r=revised September 9, 1993 Source: Bureau of Labor Statistics LABOR NEWS at your fingertips You can now get this and other U.S. Department of Labor news releases quickly and easily through LABOR NEWS—a free electronic bulletin board providing a variety of labor-related information and available to anyone with a computer, a modem, and communications software. To register directly, load the following parameters into your computer: PHONE number: (202) 219-4784 BAUD speed: 300, 1200, or 2400 PARITY: none DATA bits: 8 STOP bit: 1 After you have made a connection to LABOR NEWS, follow the registration prompts. Users must pay any toll for long-distance calls. For more information call (202) 219-7243, Monday through Friday, 9 a.m. to 4 p.m. ET. Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor and prices, seasonally adjusted Real Unit CompensacompensaHours Year Output per labor tion per tion per of all and hour of costs hour (1) hour (2) persons quarter all persons Output costs, Unit nonlabor payments (3) Implicit price deflator (4) Indexes 1982== 100 1993 I II III IV rl!2 .5 rl!3 .3 rl!4 .3 rllS .5 r!33.4 r!34.5 r!35.9 r!37.9 118.6 118.7 118.9 119.4 rlSl.O r!52.8 rl55.0 r!56.8 r!04.9 rl05.4 r!06.2 r!06.6 r!34.2 r!34.8 r!35.6 r!35.8 r!49.9 rl51.6 r!48.8 r!54.4 r!39.3 r!40.2 r!39.8 r!41.8 ANNUAL 1992 rl!3 .8 r!35.4 rl!8.9 r!53.9 r!05.8 r!35.2 rlSl.l r!40 .3 I II rllS.O rl!4.6 r!38.2 r!39.2 120.2 r!21.5 r!57.9 r!58.4 r!06.3 r!05.9 r!37.3 r!38.3 r!53.9 r!54.5 r!42 .7 r!43 .5 Percent change from previous quarter at annual rate(5) 1993 I II III IV r4 .0 r2 .9 r3 .6 r4 .1 r2.1 r3.3 r4.4 r6.0 -1.8 rO.3 0.7 1.8 r5.8 r4.8 r6.0 r4.6 r2.4 rl.6 r3.2 rl.4 rl.7 rl.8 r2.2 rO.5 r6.0 r4 .4 r-1. 2 r!6.1 r3 .2 r2 .7 r-1 .1 r5 .6 ANNUAL 1992 r3 .2 r2.7 r-0.5 r5.2 r2.1 r2.0 r3.3 r2 .4 I II r-1 .8 r-1 .3 rO.7 r3.1 r2.6 r4.5 r2.8 rl.4 r-1.0 r-1. 5 r4.7 r2.8 r-1. 4 rl.7 r2 .5 2 .4 Percent change from corresponding quarter of previous year 1993 I II III IV r2 .8 r2 .8 r3 ,5 r3 .1 rl.7 r2.1 r3.1 r3.9 -1.1 -0.7 -0.4 0.3 r5.1 rS.l r5.4 r5.3 r2.2 rl.9 r2.2 r2.2 r2.3 r2.2 rl.8 rl.6 r3.5 r3.7 rl.6 r4.5 r2 .7 r2 .7 1 .7 r2 .6 ANNUAL 1992 r3 .2 r2.7 r-0.5 r5.2 r2.1 r2.0 r3.3 r2 .4 I II r2 .2 rl .1 r3.6 r3.5 rl.4 r2.4 r4.5 r3.7 rl.3 rO.5 r2.3 r2.5 r2.6 rl.9 r2 .4 r2 .3 See footnotes following table 5. r=revised September 9, 1993 Source: Bureau of Labor Statistics Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs, seasonally adjusted Real Hours CompensacompensaOutput per Year of all tion per tion per hour of and persons hour (1) hour (2) all persons Output quarter Unit labor costs Indexes 1982=100 rllS.l rllS.l rl!5.2 rl!4.9 1993 I II III IV 126 .6 128 .3 129 .5 131 .7 ANNUAL 1992 128.7 130.3 130.7 132.8 129 .1 130.6 101 .2 r!48 .6 r!02 .2 rllS.l I II 133 .2 134 .9 135.0 135.9 101 .3 100 .7 r!50 .4 rlSl .6 rlOl .3 rlOl .4 rl!2.9 rl!2.4 101 .6 101 .6 100 .9 100 .9 r!45 .7 r!47 .6 r!49 .2 rlSl .3 rlOl .3 rlOl .8 r!02 .2 r!02 .9 • Percent change from previous quarter at annual rate (5) IV 1993 A .5 r5 .4 3 .8 7 .0 2.1 5.2 1.1 6.8 -2 .3 -0 .1 r-2 .5 -0 .2 rl .7 r5 .2 r4 .4 r5 .8 r-1 .5 r2 .1 rl .7 r2 .6 r-2. 7 r-0.1 rO.6 r-1.1 ANNUAL 1992 4 .6 3.1 -1 .4 r4 .7 rl .7 rO.l I II 4 .9 r5 .2 6.6 r2.8 1 .7 r-2 .3 r-2 .4 r3 .3 r-6 .0 rO .4 r-7.0 r-1. 8 I II III Percent change from corresponding quarter of previous year 1992 4 .1 A .5 4 .1 5 .2 2.6 3.7 2.4 3.8 -1 .4 -0 .7 -1 .6 -1 .3 r4 .7 r4 .7 r4 .6 r4 .3 rl .8 rl .5 rl .5 rl .2 rO.6 rO.2 rO.5 r-0. 8 ANNUAL 1993 I II III IV 4 .6 3.1 -1 .4 r4 .7 rl .7 rO.l I II 5 .2 5 .2 4.9 4.3 -0 .3 r-0 .9 r3 .2 r2 .7 rO .0 r-0 .4 r-1. 9 r-2. 4 See footnotes following table 5. r=revised September 9, 1993 Source: Bureau of Labor Statistics Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs, seasonally adjusted Real CompensacompensaHours Unit Output per Year tion per tion per of all labor and hour of hour (1) hour (2) costs persons Output all persons quarter Indexes 1982-100 I II III IV 135.4 138.5 140.3 143.8 134.4 136.8 137.5 140.8 99.3 98.8 98.0 97.9 r!43.3 r!45.3 r!46.9 rl49.7 r99.6 rlOO.2 rlOO.6 rlOl.8 r!05.8 r!04.9 r!04.7 r!04.1 ANNUAL 139.6 137.4 98.4 r!46.5 rlOO.7 r!04.9 I II 146.8 r!49.5 144.3 r!45.7 98.3 r97.4 r!48.3 r!49.1 r99.8 r99.7 rlOl.O r99.7 1992 1993 Percent change from previous quarter at annual rate (5) 4.6 9.4 5.3 rlO.4 2.4 7.4 2.0 9.8 -2.0 r-1.9 r-3.1 -0.5 r-0.5 r5.8 r4.4 r7.9 r-3.7 r2.6 rl.7 r4.6 r-4.8 r-3.3 r-0.8 r-2.2 ANNUAL 6.6 4.1 -2.3 r4.7 rl.7 r-1.7 I II 8.6 10.4 r4.1 1.6 rl .1 r-3.9 r2.3 r-7.4 r-0.6 r-11.5 r-5.0 1992 I II III IV 1993 __^2^> Percent change from corresponding quarter of previous year I II III IV 5.2 6.8 6.3 7.4 2.9 4.7 3.5 5.4 -2.2 -2.0 -2.6 -1.9 r4.6 r4.8 r4.6 r4.4 rl.7 rl.7 rl.5 rl.2 r-0.5 r-1.9 r-1.5 r-2.8 ANNUAL 6.6 4.1 -2.3 r4.7 rl.7 r-1.7 I II 8.4 7.3 0.3 r6,5 -1.0 -1.4 3.5 r8.0 r2.6 r-0.5 r-4.6 r-5.0 1992 1993 See footnotes following table 5. r=revised September 9, 1993 Source: Bureau of Labor Statistics 10 Table 5. Nondurable manufacturing seasonally adjusted Year and quarter Output per hour of all persons sector: Productivity, hourly compensation, Output Hours of all persons Compensation per hour (1) and unit labor costs, Real compensation per hour (2) Unit labor costs Indexes 1982=100 IV 1993 115 .8 115 .9 116 .4 117 .1 121.6 122.3 122.3 123.1 105 .0 105 .6 105 .1 105 .2 r!50 .6 r!52 .3 r!54 .0 r!55 .1 r!04 .6 r!05 .0 rlOS .5 r!05 .4 r!30.0 r!31.5 r!32.4 r!32.5 ANNUAL 1992 116 .4 122.4 105 .1 r!53 .2 r!05 .3 r!31.6 I II 117 .0 117 .6 123.6 r!23.9 105 .6 105 .4 r!55 .0 r!56 .9 r!04 .4 r!04 .9 r!32.5 r!33.5 r5 .2 r4 .8 r4 .6 r2 .8 rl .8 rl .6 rl .8 r-0 .4 rO.7 r4.6 r2.8 rO.2 I II III Percent change from previous Quarter at annual rate (5) 1993 I II III IV 4 .5 0 .1 1 .7 2 .5 1.7 2.3 0.0 2.7 -2 .7 2 .2 -1 .7 0 .2 ANNUAL 1992 2 .0 1.8 -0 .1 r4 .9 rl .8 r2.8 1.5 rl.l 1 .7 r-0 .8 r-0 .1 r5 .0 r-3 .8 r2 .0 rO.O r3.0 I II -0 .2 rl .9 Percent change from corresponding quarter of previous year 1993 I II III IV 2 .7 1 .4 1 .2 2 .2 2.3 2.4 1.0 1.7 -0 .3 1 .0 -0 .2 -0 .5 r5 .0 r4 .8 r4 .8 r4 .3 r2 .1 rl .6 rl .6 rl .2 r2.2 r3.3 r3.6 r2.1 ANNUAL 1992 2 .0 1.8 -0 .1 r4 .9 rl .8 r2.8 I II 1 .0 1 .5 1.6 rl.3 0 .6 r-0 .2 r3 .0 r3 .0 r-0 .2 r-0 .1 rl.9 rl.5 See footnotes following table 5. r-revised September 9, 1993 Source: Bureau of Labor Statistics 11 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 second published 30 days after the close of the reference period; revisions appear about 35 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 -2.0 and +2.0 index points. This interval is based on the performance of this measure between the second quarter of 1976. and the fourth quarter of 1992. Footnotes, Tables 1-6 (1) Wages and salaries of employees plus employers' contributions for social insurance and private benefit plans. Except for nonfinancial corporations, where there are no selfemployed, 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. 12 Appendix table 1. Business sector; Productivity, hourly compensation, unit labor costs, and prices, seasonally adjusted Real Unit nonImplicit compensaUnit CompensaHours Year Output per labor pay- price tion per labor tion per of all and hour of ments (3) deflator (4) hour (2) costs persons Output hour <1) quarter all persons Indexes 1982=100 110.2 111.1 110.8 110.5 133.5 134.3 133.3 132.1 121.2 120.9 120.3 119.6 137 .3 139 .9 141 .8 143 .5 103.4 104.3 104.0 103.5 124.6 125.9 127.9 129.8 138.9 140.3 139.6 140.2 129 .3 130 .6 131 .8 133 .2 110.7 133.3 120.5 140 .6 103,8 127.1 139.8 131 .2 I II III IV 110.9 111.6 111.9 112.9 131.0 131.5 131.6 132.4 118.1 117.8 117.6 117.3 144 .9 146 .6 148 .2 150 .2 103.6 104.2 104.7 105.2 130.6 131.3 132.5 133.0 143.4 145.1 145.0 145.8 134 .8 135 .8 136 .6 137 .2 ANNUAL 1991 I II III IV ANNUAL 1990 111.8 131.6 117.7 147 .4 104.5 131.9 144.7 136 .1 Percent change from previous quarter at annual rate (5) 1.5 3.5 -1.1 -1.1 3.7 2.5 -3.0 -3.5 2.1 -0.9 -1.9 -2.5 7 .2 7 .6 5 .5 4 .9 -0.3 3.6 -1.2 -1.9 5.6 4.0 6.7 6.0 3.5 3.9 -1.8 1.7 4 .9 4 .0 3 .7 4 .5 0.7 0.7 0.1 5 .7 0.3 5.0 2.3 4 .1 I II III IV 1.6 2.6 0.8 3.8 -3.2 1.5 0.2 2.7 -4.7 -1.1 -0.6 -1.1 4 .1 4 .8 4 .6 5 .3 0.3 2.5 1.8 2.0 2.4 2.2 3.8 1.5 9.4 4.7 -0.1 2.3 4 .8 3 .1 2 .4 1 .7 ANNUAL 1991 I II III IV ANNUAL 1990 1.0 -1.3 -2.3 4 .9 0.6 3.8 3.5 3 .7 Percent change from corresponding quarter of previous year 1990 0.0 0.9 1.0 0.7 0.9 1.4 0.8 -0.1 0.9 0.5 -0.2 -0.8 4 .4 5 .8 6 .4 6 .3 -0.7 1.1 0.8 0.1 4.4 4.8 5.3 5.6 3.4 2.3 1.7 1.8 4 .1 3 .9 4 .0 4 .2 ANNUAL 0.7 0.7 0.1 5 .7 0.3 5.0 2.3 4 .1 I II III IV 0.7 0.5 1.0 2.2 -1.8 -2.1 -1.3 0.3 -2.5 -2.6 -2.2 -1.9 5 .5 4 .8 4 .6 4 .7 0.2 -0.1 0.7 1.7 4.8 4.3 3.6 2.5 3.2 3.4 3.9 4.0 4 .2 4 .0 3 .7 3 .0 ANNUAL 1991 I II III IV 1.0 -1.3 -2.3 4 .9 0.6 3.8 3.5 3 .7 See footnotes following table 5. September 9, 1993 Source: Bureau of Labor Statistics 13 Appendix table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor, seasonally adjusted Real CompensacompensaHours Year Output per tion per tion per of all and hour of hour <2) hour (1) persons Output quarter all persons costs, and prices, Unit labor costs Unit nonlabor payments (3) Implicit price deflator (4) Indexes 1982=100 108 .7 109 .5 109 .1 108 .9 133.8 134.6 133.5 132.2 123.1 122.9 122.4 121.4 136.0 138.4 140.3 142.1 102.4 103.2 102.9 102.5 125.1 126.4 128.6 130.5 139.4 141.0 140.4 141.5 129 .7 131 .1 132 ,4 134 .0 109 .1 133.5 122.4 139.2 102.8 127.6 140.6 131 .8 I II III IV 109 .5 110.2 110 .5 111 .4 131.2 • 131.7 131.8 132,7 119.9 119.5 119.3 119.1 143.6 145,4 147.1 148.9 102.7 103.4 103.9 104.. 3 131.2 132.0 133.1 133.7 144.9 146.2 146.5 147.8 135 .7 136 .6 137 .5 138 .2 ANNUAL 1991 I II III IV ANNUAL 1990 110 .3 131.8 119.5 . 146.3 103.6 132.6 146.2 137 .0 Percent change from previous quarter at annual rate (5) 0.6 3 .0 -1 .5 -0 .6 3. A 2.2 -3.1 -3.7 2.7 -0.8 -1.7 -3.2 6,4 7.3 5.6 5.4 -1.1 3.3 -1.1 -1.4 5.7 4.2 7.1 6.0 2.9 4.8 -1.7 3.2 4 .7 4 .4 4 .0 5 .0 0 .4 0.6 0.2 5.5 0.1 5.1 2.5 4 .2 I II III IV 1 .9 2 ,1 1 .0 3 .5 -3.0 1.5 0.4 2.7 -4.9 -1.1 -0.6 -0.8 4.3 4.9 4.7 5,1 0.6 2.7 2.0 1.7 2.4 2.2 3.7 1.5 9.9 3.7 0.7 3.5 4 .9 2 .7 2 .6 2 .2 ANNUAL 1991 I II III IV ANNUAL 1990 1 .1 -1.3 -2.4 5.0 0.8 3.9 4.0 3 .9 Percent change from corresponding quarter of previous year 1990 -0 .2 0 .8 0 .6 0 .4 0.8 1.4 0.6 -0.4 1.0 0.6 0.0 -0.8 4.1 5.6 6.1 6.1 -1.0 1.0 0.5 -0.1 4.4 4.8 5.5 5.7 3.7 2.5 1.7 2.3 4 .1 4 .0 4 .1 4 .5 ANNUAL 0 .A 0.6 0.2 5.5 0.1 5.1 2.5 4 .2 I II III IV 0 .1 .0 .6 1 .3 2 .3 -2.0 -2.1 5.6 5.1 4.8 4.8 0.3 0.2 1.0 1.7 4.9 4.4 3.5 2.4 4.0 3.7 4.3 4.4 4 .6 -1.2 0.4 -2.6 -2.7 -2.5 -1.9 4 .2 3 .8 3 .1 ANNUAL 1991 I II III IV 1 .1 -1.3 -2.4 5.0 0.8 3.9 4.0 3 .9 See footnotes following table 5, September 9, 1993 Source: Bureau of Labor Statistics 14 Appendix table 3. Manufacturing sector: Productivity, hourly compensation, and unit labo-r costs, seasonally adjusted Year and quarter Output per hour of all persons Output Hours of all persons Compensation per hour (1) Real compensat ion per hour (2) Unit labor costs Indexes 1982=100 I II III IV 120.7 120.6 121.8 122.1 130.3 130.2 130.4 128,4 107.9 108.0 107.0 105.2 131.8 133.8 135.2 137.6 99.2 99.8 99.2 99.3 109.2 111.0 110.9 112.7 ANNUAL 1-21.4 129.8 106.9 134.7 99.4 110.9 I II III IV 121.6 122.8 124.4 125.2 125.4 125.6 127.6 128.0 103.1 102.3 102.6 102.2 139.2 141.0 142.6 145.1 99.5 100.2 100.7 101.7 114.5 114.8 114.7 115.9 ANNUAL 123.4 126.7 102.6 141.9 100.5 115.0 1990 1991 Percent change from previous quarter at annual rate (5) I II III IV 3.5 -0.5 4 .2 0.7 2.7 -0.3 0.5 -5.9 -0.8 0.2 -3.6 -6.5 4.8 6.2 4.2 7.4 -2,6 2.3 -2.4 0.5 1.2 6.7 0.0 6.6 ANNUAL 1.2 -1.0 -2.2 5.3 -0.1 4.1 I II III IV -1.5 3.9 5.4 2.7 -9.2 0.9 6.3 1.3 -7.9 -2.8 0.9 -1.4 4.7 5.3 4.7 7.1 0.9 3.0 2.0 3.7 6.2 1.4 -0.7 4.3 ANNUAL 1.7 -2.5 -4 .1 5.4 1.1 3.6 1990 1991 Percent change from corresponding quarter of previous year 1990 I II III IV 0.2 -0.1 2.2 2.0 -1.9 -1.6 0.1 -0.8 -2.0 -1.5 -2.1 -2.7 4.1 5.6 5.5 5.6 -1.0 1.0 0.0 -0.6 3.9 5.7 3.2 3.6 ANNUAL 1.2 -1.0 -2.2 5.3 -0.1 4.1 I II III IV 0.7 1.8 2.1 2.6 -3.8 -3.5 -2.1 -0.3 -4.5 -5.2 -4 .1 -2.8 5.6 5.4 5.5 5.4 0.3 0.5 1.6 2.4 4.9 3.5 3.3 2.8 ANNUAL 1.7 -2.5 -4.1 5.4 1.1 3.6 1991 See footnotes following table 5. September 9, 1993 Source: Bureau of Labor Statistics 15 Appendix table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs, seasonally adjusted Year and o^iarter Output per hour of all persons Output Hours of all persons Compensation per hour(l) Real compensation per hour (2) Unit labor costs Indexes 1982=100 I II III IV 126.5 127.3 129.3 129.3 136.8 137.5 137.8 134.6 108.1 108.0 106.6 104.1 129.6 131.5 132.9 135.5 97.5 98.1 97.5 97.7 102.4 103.3 102.8 104.8 ANNUAL 128.2 136.7 106.6 132.5 97.8 103.3 'l II III IV 128.8 129.7 132.0 133.9 130.7 130.7 132.8 133.6 101.5 100.8 100.6 99.8 137.0 138.7 140.4 143.5 97.9 98.6 99.2 100.5 106.4 107.0 106.4 107.2 ANNUAL 131.0 132.0 100.7 139.8 99.1 106.7 1990 1991 Percent change from previous quartex at annual rate (5) 1990 I II III IV 3.5 2.6 6.3 -0.1 2.2 2.2 1.0 -9.0 -1.2 -0.4 -5.0 -9.0 3.4 6.2 4 .3 8.0 -3.8 2.2 -2.3 1.1 -0.1 3.5 -1.9 8.1 ANNUAL 2.0 -1.5 -3.4 5.5 0.1 3.4 I II III IV -1.5 2.8 7.5 5.9 -11.2 0.1 6.6 2.3 -9.8 -2.6 -0.8 -3.4 4.6 5.0 5.1 9.0 0.8 2.7 2.4 5.6 6.2 2.2 -2.2 3.0 ANNUAL 2.2 -3.5 -5.5 5.5 1.3 3.3 1991 Percent change from corresponding quarter of previous year 1990 I II III IV 0.6 0.6 3.0 3.0 -2.9 -1.9 -0.1 -1.0 -3.5 -2.5 -2.9 -4.0 4.3 5.9 5.6 5.4 -0.9 1.3 0.1 -0.8 ANNUAL 2.0 -1.5 -3.4 5.5 0.1 3.4 I II III IV 1.8 1.8 2.1 3.6 -4.4 -4.9 -3.6 -0.8 -6.1 -6.6 -5.6 -4.2 5.7 5.4 5.7 5.9 0.4 0.6 1.7 2.9 3.9 3.6 3.5 2.2 ANNUAL 2.2 -3.5 -5.5 5.5 1.3 3.3 1991 See footnotes following table 5. 3.6 5,2 2.5 2.3 September 9, 1993 Source: Bureau of Labor Statistics 16 Appendix table 5. Nondurable manufacturing sector: Productivity/ hourly compensation, and unit labor costs, 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 costs Indexes 1982=100 IV 122.4 121.3 121.2 120.9 107 .7 108 .0 107 .6 106 .8 135.5 137.7 139.2 141.5 102 .0 102 .7 102 .1 102 .1 119 .3 122 .6 123 .5 125 .0 113 .0 121.5 107 .4 138.6 102 .3 122 .6 I II III IV 112 .8 114 .3 115 .0 114 .6 118.8 119.4 121.2 121.1 105 .4 104 .5 105 .3 105 .7 143.4 145.4 147.0 148.7 102 .5 103 .4 103 .8 104 .1 127 .1 127 .2 127 .8 129 .8 ANNUAL 1991 113 .6 112 .3 112 .7 113 .2 ANNUAL 1990 114 .1 120.1 105 .3 146.1 103 .5 128 .0 I II III Percent change from previous quarter at annual rate (5) 3 .6 -4 .5 1 .4 1 .1 3.4 -3.6 -0.1 -1.3 -0 .2 1 .0 -1 .5 -3 .0 7.1 6.5 4.5 6.9 -0 .3 2 .5 -2 .1 0 .0 3 .5 11 .6 3 .1 5 .1 0 .1 -0.4 -0 .5 5.4 0 ,0 5 .4 I II III IV -1 .4 5 .3 2 .7 -1 .6 -6.5 2.0 6.0 -0.1 -5 .1 -3 .2 3 .2 1 .5 5.3 5.7 4.5 4.6 1 .5 3 .4 1 .8 1 .3 6 .9 0 .3 1 .7 6 .3 ANNUAL 1991 I II III IV ANNUAL 1990 1 .0 -1.1 -2 .0 5.4 1 .1 4 .4 Percent change from corresponding quarter of previous year 1990 -0 .6 -1 .1 1 .2 0 .5 -0.4 -1.2 0.4 -0.4 0 .2 0 .0 -0 .8 -0 .9 4.1 5.4 5.6 6.3 -1 .0 0 .8 0 .0 0 .0 4 .7 6 .6 4 .4 5 .7 ANNUAL 0 .1 -0.4 -0 .5 5.4 0 .0 5 .4 I II III IV -0 .8 1 .7 2 .0 1 .2 -2.9 -1.5 -0.1 0.2 -2 .2 -3 .2 -2 .1 -1 .0 5.8 5.6 5.6 5.0 0 .5 0 .7 1 .7 2 .0 6 .6 3 .8 3 .5 3 .8 ANNUAL 1991 I II III IV 1 .0 -1.1 -2 .0 5.4 1 .1 4 .4 See footnotes following table 5. September 9, 1993 Source: Bureau of Labor Statistics
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