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Internet address: Historical, technical information: Current data: Media contact: http://www.bls.gov/lpc/ (202) 691-5606 (202) 691-5200 (202) 691-5902 USDL 03-411 TRANSMISSION OF THIS MATERIAL IS EMBARGOED UNTIL 8:30 A.M. EDT, THURSDAY, AUG. 7, 2003. PRODUCTIVITY AND COSTS Second Quarter 2003 The Bureau of Labor Statistics of the U.S. Department of Labor reported preliminary productivity data—as measured by output per hour of all persons—for the second quarter of 2003. The preliminary seasonally adjusted annual rates of productivity change in the second quarter were: 6.1 percent in the business sector and 5.7 percent in the nonfarm business sector. In the business sector, productivity grew as output rose 3.2 percent and hours dropped 2.7 percent. A similar pattern occurred in nonfarm businesses, output grew 3.4 percent and hours fell 2.2 percent. In manufacturing, the preliminary productivity changes in the second quarter were: 4.2 percent in manufacturing, 3.8 percent in durable goods manufacturing, and 4.4 percent in nondurable goods manufacturing. Manufacturing productivity grew 4.2 percent in the second quarter reflecting declines in output and hours of 2.1 and 6.1 percent, respectively. Output and hours in manufacturing, which includes about 15 percent of U.S. business-sector employment, tend to vary more from quarter to quarter than data for the aggregate business and nonfarm business sectors. Second-quarter measures are summarized in table A and appear in detail in tables 1 through 5. The data in this release reflect the annual benchmark revision and other changes to the BLS establishment survey data released by BLS on June 6. In addition, revisions to the Current Population Survey first released by BLS on Feb. 7 have been fully incorporated into the measures. The employment and hours series also incorporate new information on seasonal patterns and new hours worked to hours paid ratios. See Revised Measures, page 4. Appendix tables 1-4 show revised historical series for the business and nonfarm business sectors. 2 Table A. Productivity and costs: Preliminary second-quarter 2003 measures (Seasonally adjusted annual rates) Sector Productivity Output Hours Hourly compensation Real hourly compensation Unit labor costs Percent change from preceding quarter Business Nonfarm business Manufacturing Durable Nondurable 6.1 5.7 4.2 3.8 4.4 3.2 3.4 -2.1 -3.1 -1.0 -2.7 -2.2 -6.1 -6.7 -5.2 3.9 3.5 5.4 5.2 5.8 3.3 2.9 4.8 4.6 5.2 -2.0 -2.1 1.2 1.4 1.3 0.9 0.6 3.4 3.0 4.1 -0.9 -1.0 0.7 -0.2 2.2 Percent change from same quarter a year ago Business Nonfarm business Manufacturing Durable Nondurable 4.0 3.8 4.8 5.5 4.1 2.9 2.9 -0.9 -0.7 -1.0 -1.1 -0.9 -5.5 -5.9 -4.9 3.1 2.8 5.6 5.2 6.4 The data sources and methods used in the preparation of the manufacturing series differ from those used in preparing the business and nonfarm business series, and these measures are not directly comparable. 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 indexes of industrial production independently prepared by the Board of Governors of the Federal Reserve System. See Technical Notes for further information on data sources (page 10). Business From the first quarter to the second quarter of 2003, business sector output per hour increased at a 6.1-percent annual rate. Output rose 3.2 percent and hours of all persons engaged in the sector fell 2.7 percent (seasonally adjusted annual rates). As revised, labor productivity grew 2.7 percent in the first quarter of 2003, when output increased 1.4 percent and hours decreased 1.2 percent (table 1). 3 Hourly compensation increased 3.9 percent in the second quarter, less than the 4.8 percent gain in the first quarter of 2003 (seasonally adjusted annual rates). This measure includes wages and salaries; vacation and other paid leave; bonuses, stock options, and other supplements; employer contributions to employee benefit plans; and taxes. Real hourly compensation, which takes into account changes in consumer prices, rose at a 3.3-percent annual rate during the second quarter of 2003, after rising 0.9 percent during the previous quarter. The second quarter increase of 3.3 percent was the largest in the business sector since a 4.7-percent increase in the third quarter of 2000. Unit labor costs, which reflect changes in both hourly compensation and productivity, fell 2.0 percent during the second quarter of 2003 after rising 2.0 percent in the previous quarter. The implicit price deflator for the business sector, which reflects changes in both unit labor costs and unit nonlabor payments, increased 0.9 percent in the second quarter and 1.6 percent in the first quarter of 2003. Nonfarm business Productivity increased 5.7 percent in the nonfarm business sector during the second quarter of 2003, as output rose 3.4 percent and hours of all persons declined 2.2 percent (seasonally adjusted annual rates). Output per hour grew at a 2.1 percent annual rate in the first quarter of 2003, as output increased 1.4 percent and hours decreased 0.7 percent (table 2). Hourly compensation in the nonfarm business sector increased 3.5 percent in second quarter 2003, down from the 4.1-percent rise one quarter earlier. When the rise in consumer prices is taken into account, real hourly compensation for the second quarter of 2003 rose 2.9 percent. As in the larger business sector, the second quarter increase in real hourly compensation was the largest since the third quarter of 2000, when it rose 5.0 percent. Unit labor costs decreased 2.1 percent in the second quarter of 2003, after rising 2.0 percent during the first quarter. The implicit price deflator for nonfarm business output grew 0.8 percent in the second quarter, down from the 1.4-percent increase in the previous quarter. Manufacturing Productivity increased 4.2 percent in manufacturing, as output fell 2.1 percent and hours of all persons declined 6.1 percent (seasonally adjusted annual rates). In the previous quarter, productivity rose 4.9 percent, reflecting decreases in output and hours of 0.7 and 5.3 percent, respectively. In durable goods, productivity rose 3.8 percent in the second quarter as output dropped 3.1 percent and hours of all persons fell 6.7 percent. In nondurable goods, secondquarter productivity increased by 4.4 as output declined 1.0 percent and hours fell 5.2 percent (tables 3, 4, and 5). 4 Hourly compensation of all manufacturing workers rose 5.4 percent during the second quarter, reflecting growth of 5.2 percent in durable goods and 5.8 percent in nondurable goods. When the increase in consumer prices is taken into account, the real hourly compensation of all manufacturing workers increased by 4.8 percent in the second quarter, after rising 3.3 percent one quarter earlier. Unit labor costs in manufacturing grew 1.2 percent in the second quarter. In durable goods industries, unit labor costs rose 1.4 percent and in nondurable goods industries, they increased 1.3 percent. The change in unit labor costs is roughly equal to the change in hourly compensation less the change in productivity. Revised Measures Current and previous measures for the first quarter of 2003 for the business, nonfarm business, and manufacturing sectors are compared in table B. In the business and nonfarm business sectors, productivity was revised up slightly from the numbers reported on June 4. This occurred as both output and hours were revised down, hours more than output. Hourly compensation and unit labor costs grew more than reported on June 4, based on information then available. In manufacturing, productivity growth grew substantially faster than reported on June 4 as a result of a sharp downward revision to hours. Hourly compensation also shows a steep upward revision in the first quarter. Unit labor costs were revised down, reflecting the fact that the upward revision to productivity was larger than the upward revision to hourly compensation. Table B also shows comparisons of current and previous measures for the fourth quarter of 2002. In that quarter, productivity in the business and nonfarm business sectors also was revised up, reflecting downward revisions to hours growth. In addition, hourly compensation in the fourth quarter was revised down in both sectors reflecting both the changes in hours and new compensation data. Reflecting both of these revisions, unit labor costs in both sectors were revised down by more than three percentage points and now show very little change in the quarter. In the manufacturing sector, productivity was revised up with the incorporation of the new hours data and now shows an increase of 3.6 percent in the fourth quarter rather than the decline reported on June 4. Hourly compensation also was revised up. As in the first quarter numbers, unit labor costs show less of an increase than reported earlier as the upward revision to hourly compensation was less than that to productivity. 5 Table B. Previous and revised productivity and related measures Quarterly percent changes at seasonally adjusted annual rates Sector Productivity Output Hours Hourly compensation Real hourly compensation Unit labor costs First quarter 2003 Business: Previous........................ Current ......................... Nonfarm business: Previous........................ Current ......................... Manufacturing: Previous........................ Current ......................... 2.5 2.7 2.0 1.4 -0.5 -1.2 3.8 4.8 0.0 0.9 1.3 2.0 1.9 2.1 1.8 1.4 -0.1 -0.7 3.4 4.1 -0.4 0.2 1.5 2.0 1.9 4.9 -0.7 -0.7 -2.6 -5.3 4.5 7.3 0.7 3.3 2.6 2.2 Fourth quarter 2002 Business: Previous........................ Current ......................... Nonfarm business: Previous........................ Current ......................... Manufacturing: Previous........................ Current ......................... 0.3 1.5 1.7 1.7 1.5 0.2 3.6 1.6 1.6 -0.4 3.3 0.1 0.7 1.7 1.7 1.7 0.9 0.0 3.9 1.6 1.9 -0.4 3.2 -0.1 -0.5 3.6 -3.7 -3.7 -3.2 -7.1 5.4 7.4 3.4 5.3 5.9 3.6 Hours data for the business and nonfarm business sectors now incorporate all of the changes made to the Current Establishment Statistics (CES) data reported on June 6 and the Current Population Survey (CPS) data reported on Feb. 7. They also include a new method of adjusting hours paid to hours at work for the period following 2000, when the Bureau's last Hours at Work Survey was conducted. All of the data incorporate new information on seasonal patterns. Appendix tables 1 and 2 present quarterly and annual measures for the business and nonfarm business sectors for 1998-2000 and appendix tables 3 and 4 show annual indexes for all years beginning in 1947. In manufacturing, only revised data for recent years were used to prepare the productivity and cost measures; these were linked to the SIC-based hours series previously published by the BLS. For employees in manufacturing establishments, new information adjusted to the old SIC basis was used beginning with the second quarter of 2001. Small revisions to the hours of selfemployed workers that reflect the most recent information on seasonal trends extend back to 1998. 6 The historical revisions to the employment and average weekly hours data from the CES change the indexes of employment and hours in the business and nonfarm business sectors for all years. The CES data incorporate several major changes, as described in release USDL 03-281 (ftp://ftp.bls.gov/pub/news.release/History/empsit.06062003.news). These include the conversion to NAICS, the completion of the CES sample redesign, and annual benchmark revisions. The changes to the CPS data used in the productivity measures were primarily related to the new levels introduced with the use of weights from the 2000 population census. For the purpose of measuring productivity, the revisions to employment and hours in 2000 due to new population weights were interpolated back to 1990 (when the previous population census was conducted). New information on employment and hours levels for the farm sector was introduced beginning with January 2000; the 1947-1999 measures were adjusted to this level. Productivity and cost measures were revised to reflect new measures of hours at work to hours paid. The Bureau's Hours at Work Survey was discontinued following the collection of data for 2000. New measures based on information from the National Compensation Survey, which collects data on hours worked and employer leave practices, have been linked to the levels beginning with the first quarter of 2001. A description of these measures is available at http://www.bls.gov/lpc/lprhws/lprhwhp.pdf. Current and previous changes in the annual measures for the business, nonfarm business, and manufacturing sectors are compared in table C. In the business and nonfarm business sectors, productivity was revised up in both 2001 and 2002, reflecting the downward revisions to hours of all persons. The hourly compensation data also were revised upward by a similar amount. As a result, unit labor costs in both years are about the same as they were in the previously published data. Similarly, in manufacturing, productivity and hourly compensation were revised up in 2001 and 2002 as a result of downward revisions to hours. Unit labor costs were revised only slightly downward in 2002 and were unchanged in 2001. 7 Table C. Previous and revised productivity and related measures Annual percent changes Sector Productivity Output Hours Hourly compensation Real hourly compensation Unit labor costs Annual average 2002 Business: Previous........................ Current ......................... Nonfarm business: Previous........................ Current ......................... Manufacturing: Previous........................ Current ......................... 4.8 5.3 2.7 2.7 -2.0 -2.5 2.5 2.8 0.9 1.2 -2.2 -2.3 4.8 5.4 2.7 2.7 -2.0 -2.5 2.4 2.8 0.8 1.2 -2.3 -2.4 4.5 6.4 -1.1 -1.1 -5.4 -7.0 3.3 5.0 1.6 3.4 -1.2 -1.3 Annual average 2001 Business: Previous........................ Current ......................... Nonfarm business: Previous........................ Current ......................... Manufacturing: Previous........................ Current ......................... 1.1 2.0 -0.2 -0.2 -1.3 -2.1 2.9 3.8 0.2 1.0 1.8 1.8 1.1 1.9 -0.1 -0.1 -1.2 -2.0 2.7 3.6 -0.1 0.8 1.6 1.7 0.8 1.6 -4.9 -4.9 -5.6 -6.4 1.5 2.4 -1.2 -0.4 0.8 0.8 Revised measures: Nonfinancial Corporations Productivity and cost measures for the first quarter for nonfinancial corporations also were revised to incorporate more recent information than was available on June 4. Productivity was revised up, reflecting both an upward revision to output and a larger drop in employee hours. Hourly compensation was revised up. However, the upward revision to productivity was much larger than the upward revision to hourly compensation and unit labor costs were revised down. Unit profits also were revised up (table D). Productivity and cost measures for the fourth quarter of 2002 also were revised to incorporate more recent information on output, hours, and employee compensation. Fourth quarter 2003 productivity did not rise as rapidly as reported on June 4, reflecting a downward revision to output that was much larger than the downward revision to hours. Hourly compensation also was revised down and unit labor costs show a larger decline than originally reported. 8 The hours measures for most employees of nonfinancial corporations have been revised only beginning with the second quarter of 2001. The output and compensation measures for nonfinancial corporations are not yet available on a NAICS basis so BLS is continuing to use the levels reported on an SIC basis for the months prior to April 2001. In order to capture the CES benchmark to the Covered Employment and Wages (CEW), CES data for April 2001 through March 2003 reported on a NAICS basis are converted back to the SIC using bridge tables published for first quarter 2001 CEW data. In addition, estimates of hours for employees working on incorporated farms were revised back to 1958. The corporate farm sector has historically been small and the changes in productivity and cost movements due to the incorporation of this revision are very small. As a result of the various revisions, hours in the nonfinancial corporate sector now show larger drops in 2001 and 2002 than previously published. The new measures are shown in table 6. Table D. Nonfinancial corporations: Previous and revised productivity and cost measures Quarterly percent changes at seasonally adjusted annual rates ProducOutput tivity Previous Current Previous Current 2.9 4.5 5.0 3.6 Hours Hourly compensation Real hourly compensation Unit labor costs Implicit price Unit profits deflator 2.4 2.8 First quarter 2003 -0.5 4.7 0.8 -1.6 5.4 1.5 1.7 0.9 2.2 7.6 1.0 0.7 4.5 2.8 Fourth quarter 2002 -0.5 4.9 2.8 -0.8 2.6 0.6 -0.1 -1.0 20.8 22.8 0.9 0.9 Upcoming changes Historical measures of output and compensation for all sectors, along with the conversion of the manufacturing and nonfinancial corporate sectors from the 1987 Standard Industrial Classification (SIC) to the 2002 North American Industry Classification System (NAICS), will be prepared following the release of the revised national income and product accounts in December. On January 7, 2004, the BLS will post revised productivity and cost measures through fourth quarter, 2002 on its web site. More specific information will be announced later this year. 9 Next release date The next release of Productivity and Costs is scheduled for 8:30 a.m. EDT, Thursday, Sept. 4, 2003. Revised second-quarter measures for business, nonfarm business, and manufacturing will be released at that time, along with preliminary measures for nonfinancial corporations. 10 TECHNICAL NOTES Labor Hours: Hours data for the labor productivity and cost measures include hours for all persons working in the sector—wage and salary workers, the self-employed, and unpaid family workers. The primary source of hours and employment data is the BLS Current Employment Statistics (CES) program, which provides monthly survey data on the number of jobs held by wage and salary workers in nonfarm establishments. The CES also provides average weekly paid hours of production and nonsupervisory workers in these establishments. The Office of Productivity and Technology estimates average weekly paid hours of nonproduction and supervisory workers. Weekly paid hours are adjusted to hours at work 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 (BEA) 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 an annualweighted index constructed after excluding from gross domestic product (GDP) the following outputs: General government, nonprofit institutions, paid employees of private households, and the rental value of owner-occupied dwellings. Corresponding exclusions also are made in labor inputs. Business output accounted for about 77 percent of the value of GDP in 1996. Nonfarm business, which also excludes farming, accounted for about 76 percent of GDP in 1996. Annual indexes for manufacturing and its durable and nondurable goods components are constructed by deflating current-dollar industry value of production data from the U.S. Bureau of the Census with deflators from the BEA. These deflators are based on data from the BLS producer price program and other sources. The industry shipments are aggregated using annual weights, and intrasector transactions are removed. 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 to be consistent with annual indexes of manufacturing sector output prepared by BLS. 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, and leather and leather products. Nonfinancial corporate output is an annualweighted index calculated on the basis of the costs incurred and the incomes earned from production. The output measure excludes the following outputs from GDP: general government; nonprofit institutions; employees of private households; the rental value of owner-occupied dwellings; unincorporated business; and those corporations which are depository institutions, nondepository institutions, security and commodity brokers, insurance carriers, regulated investment offices, small business investment offices, and real estate investment trusts. Nonfinancial corporations accounted for about 53 percent of the value of GDP in 1996. 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: 202-691-5200; Federal Relay Service number: 1-800-877-8339. 11 Table 1. Business sector: Productivity, hourly compensation, unit labor costs, and prices, seasonally adjusted Real Year Output per Hours CompensacompensaUnit Unit nonImplicit and hour of of all tion per tion per labor labor pay- price quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4) --------------------------------------------------------------------------------------------------------Indexes 1992=100 2001 2002 I II III IV r117.4 r117.8 r118.8 r121.3 140.4 139.4 139.1 140.3 r119.6 r118.3 r117.1 r115.6 r137.4 r138.2 r139.1 r139.8 r111.9 r111.6 r112.1 r112.8 r117.1 r117.3 r117.1 r115.2 r112.0 r113.3 r115.1 r117.0 115.2 115.8 116.4 115.9 ANNUAL r118.8 139.8 r117.6 r138.6 r112.1 r116.7 r114.3 115.8 I II III IV r123.9 r124.1 r125.9 r126.4 142.3 142.5 144.4 145.0 r114.9 r114.8 r114.6 r114.7 r141.0 r142.4 r143.1 r143.7 r113.4 r113.5 r113.5 r113.4 r113.8 r114.7 r113.6 r113.7 r119.7 r118.8 r120.9 r122.1 116.0 116.2 116.3 116.8 ANNUAL r125.1 143.5 r114.7 r142.5 r113.5 113.9 120.4 116.3 2003 I r127.2 r145.5 r114.3 r145.4 r113.7 r114.2 r122.3 r117.2 II 129.1 146.6 113.6 146.8 114.6 113.7 124.0 117.5 --------------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 2001 2002 I II III IV r-0.5 r1.5 r3.3 r8.7 -1.0 -2.8 -0.9 3.5 r-0.5 r-4.3 r-4.1 r-4.8 r4.6 r2.3 r2.5 r2.1 r0.8 r-0.9 r1.6 r2.7 r5.1 r0.8 r-0.8 r-6.1 r0.3 r4.6 6.8 r6.7 3.4 2.2 1.8 -1.6 ANNUAL r2.0 -0.2 r-2.1 r3.8 r1.0 1.8 r2.3 2.0 I II III IV r8.7 r0.8 r5.9 r1.5 5.9 0.6 5.3 1.7 r-2.6 r-0.2 r-0.6 r0.2 r3.5 r4.0 r2.1 r1.6 r2.2 r0.4 r0.0 r-0.4 r-4.8 r3.1 r-3.6 r0.1 r9.6 r-3.2 r7.6 r3.8 0.3 0.7 0.5 1.5 ANNUAL r5.3 2.7 r-2.5 r2.8 r1.2 r-2.3 r5.3 0.4 2003 I r2.7 r1.4 r-1.2 r4.8 r0.9 r2.0 r0.8 r1.6 II 6.1 3.2 -2.7 3.9 3.3 -2.0 5.8 0.9 --------------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 2001 2002 2003 I II III IV r2.2 r1.1 r1.7 r3.2 1.4 -0.7 -1.0 -0.3 r-0.8 r-1.7 r-2.6 r-3.4 r4.9 r4.8 r3.3 r2.9 r1.4 r1.4 r0.6 r1.0 2.6 r3.7 r1.6 r-0.3 1.4 r-0.5 r3.7 r4.6 2.2 2.1 2.3 1.4 ANNUAL r2.0 -0.2 r-2.1 r3.8 r1.0 1.8 r2.3 2.0 I II III IV r5.5 r5.4 r6.0 r4.2 1.4 2.3 3.8 3.4 r-3.9 r-2.9 r-2.1 r-0.8 r2.6 r3.0 r2.9 r2.8 r1.4 r1.7 r1.3 r0.5 -2.8 r-2.2 r-2.9 r-1.4 r6.9 r4.9 r5.0 r4.3 0.7 0.3 0.0 0.7 ANNUAL r5.3 2.7 r-2.5 r2.8 r1.2 r-2.3 r5.3 0.4 I r2.7 r2.2 r-0.5 r3.1 r0.2 r0.4 r2.2 1.1 II 4.0 2.9 -1.1 3.1 0.9 -0.9 4.5 1.1 --------------------------------------------------------------------------------------------------------See footnotes following Table 6. August 7, 2003 r=revised Source: Bureau of Labor Statistics 12 Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs, and prices, seasonally adjusted Real Year Output per Hours CompensacompensaUnit Unit nonImplicit and hour of of all tion per tion per labor labor pay- price quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4) --------------------------------------------------------------------------------------------------------Indexes 1992=100 2001 2002 I II III IV r116.9 r117.4 r118.3 r120.7 140.7 139.7 139.4 140.4 r120.3 r119.0 r117.8 r116.3 r136.7 r137.4 r138.2 r138.9 r111.3 r111.0 r111.4 r112.1 r117.0 r117.1 r116.8 r115.1 r113.5 r114.9 r116.8 r119.0 115.7 116.3 116.8 116.5 ANNUAL r118.3 140.1 r118.4 r137.8 r111.4 r116.5 r116.1 116.3 I II III IV r123.4 r123.7 r125.5 r126.0 142.5 142.9 144.7 145.3 r115.5 r115.5 r115.3 r115.3 r140.2 r141.5 r142.2 r142.8 r112.8 r112.9 r112.8 r112.7 r113.6 r114.4 r113.3 r113.3 r121.5 r121.2 r123.1 r124.3 116.4 116.8 116.9 117.3 ANNUAL r124.7 143.9 r115.4 r141.7 r112.8 113.6 122.5 116.9 2003 I r126.7 r145.8 r115.1 r144.2 r112.8 r113.8 r124.5 117.7 II 128.5 147.0 114.4 145.5 113.6 113.2 126.2 117.9 --------------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 2001 2002 I II III IV r-0.4 r1.6 r3.4 r8.3 -0.9 -2.7 -0.8 2.9 r-0.5 r-4.3 r-4.1 r-5.0 r4.3 r2.0 r2.4 r2.1 r0.5 r-1.2 r1.5 r2.7 r4.7 0.3 r-0.9 r-5.7 r0.8 r5.0 r6.6 r7.7 3.3 2.0 1.7 -1.0 ANNUAL r1.9 -0.1 r-2.0 r3.6 r0.8 r1.7 r2.4 1.9 I II III IV r9.3 r1.0 r5.9 r1.7 6.2 0.9 5.2 1.7 r-2.9 r0.0 r-0.6 r0.0 r3.7 r3.9 r2.0 r1.6 r2.4 r0.3 r-0.2 r-0.4 r-5.2 r2.9 r-3.7 r-0.1 r8.7 r-0.9 r6.6 r3.9 -0.2 1.4 0.1 1.4 ANNUAL r5.4 2.7 r-2.5 r2.8 r1.2 r-2.4 r5.6 0.5 2003 I r2.1 r1.4 r-0.7 r4.1 r0.2 r2.0 r0.4 r1.4 II 5.7 3.4 -2.2 3.5 2.9 -2.1 5.6 0.8 --------------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 2001 2002 2003 I II III IV r2.0 r1.1 r1.7 r3.2 1.4 -0.6 -0.8 -0.4 r-0.6 r-1.6 r-2.5 r-3.5 r4.5 r4.6 r3.0 r2.7 r1.1 r1.1 r0.3 r0.9 r2.5 3.5 r1.3 -0.5 1.4 -0.3 r3.7 r5.0 2.1 2.1 2.2 1.5 ANNUAL r1.9 -0.1 r-2.0 r3.6 r0.8 r1.7 r2.4 1.9 I II III IV r5.6 r5.4 r6.1 r4.4 1.3 2.3 3.8 3.5 r-4.0 r-3.0 r-2.1 r-0.9 r2.5 r3.0 r2.9 r2.8 r1.3 r1.7 r1.3 r0.5 -2.9 r-2.3 -3.0 r-1.6 r7.0 r5.4 5.4 r4.5 0.6 0.5 0.1 0.7 ANNUAL r5.4 2.7 r-2.5 r2.8 r1.2 r-2.4 r5.6 0.5 I r2.6 r2.3 r-0.3 r2.9 r0.0 r0.2 r2.5 1.1 II 3.8 2.9 -0.9 2.8 0.6 -1.0 4.1 0.9 --------------------------------------------------------------------------------------------------------See footnotes following Table 6. August 7, 2003 r=revised Source: Bureau of Labor Statistics 13 Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs, seasonally adjusted Real Year Output per Hours CompensacompensaUnit and hour of of all tion per tion per labor quarter all persons Output persons hour (1) hour (2) costs -------------------------------------------------------------------------------------------------Indexes 1992=100 2001 2002 I II III IV 135.2 r135.8 r137.8 r139.9 134.9 132.8 131.1 129.1 99.8 r97.8 r95.1 r92.3 132.0 r133.6 r135.0 r136.7 107.5 r107.9 r108.8 r110.3 97.6 98.4 97.9 97.7 ANNUAL r137.1 132.0 r96.3 r134.3 r108.6 97.9 I II III IV r142.9 r144.8 r147.2 r148.5 129.5 130.6 131.6 130.3 r90.6 r90.2 r89.4 r87.8 r138.3 r140.5 r141.3 r143.9 r111.3 r112.0 r112.1 r113.6 96.8 r97.0 96.0 r96.9 ANNUAL r145.8 130.5 r89.5 r141.0 r112.2 r96.7 2003 I r150.3 130.1 r86.6 r146.4 r114.5 r97.4 II 151.9 129.4 85.2 148.4 115.9 97.7 -------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 2001 2002 I II III IV -2.1 r1.8 r6.1 r6.0 -7.6 -6.2 -4.9 -6.1 r-5.7 r-7.9 r-10.3 r-11.5 1.6 r5.0 r4.1 r5.1 -2.1 r1.7 r3.2 r5.7 3.7 3.1 r-1.8 r-0.9 ANNUAL r1.6 -4.9 r-6.4 r2.4 r-0.4 0.8 I II III IV r9.1 r5.5 r6.7 r3.6 1.2 3.5 3.0 -3.7 r-7.2 r-1.9 r-3.4 r-7.1 r5.0 r6.3 r2.5 r7.4 r3.7 r2.7 r0.3 r5.3 r-3.8 r0.8 -3.9 r3.6 ANNUAL r6.4 -1.1 r-7.0 r5.0 r3.4 r-1.3 2003 I r4.9 -0.7 r-5.3 r7.3 r3.3 r2.2 II 4.2 -2.1 -6.1 5.4 4.8 1.2 -------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 2001 2002 2003 I II III IV 1.2 r0.7 r1.8 r2.9 -2.4 -5.0 -5.9 -6.2 -3.6 r-5.7 r-7.5 r-8.9 0.5 r3.4 r2.1 r3.9 -2.9 r0.0 r-0.6 r2.1 -0.7 r2.7 r0.3 1.0 ANNUAL r1.6 -4.9 r-6.4 r2.4 r-0.4 0.8 I II III IV r5.7 r6.7 r6.8 r6.2 -4.0 -1.7 0.3 1.0 r-9.2 r-7.8 r-6.1 r-4.9 r4.8 r5.1 r4.7 r5.3 r3.6 r3.8 r3.1 r3.0 -0.9 r-1.4 -2.0 r-0.9 ANNUAL r6.4 -1.1 r-7.0 r5.0 r3.4 r-1.3 I r5.2 0.5 r-4.4 r5.9 r2.9 r0.7 II 4.8 -0.9 -5.5 5.6 3.4 0.7 -------------------------------------------------------------------------------------------------See footnotes following Table 6. August 7, 2003 r=revised Source: Bureau of Labor Statistics 14 Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs, seasonally adjusted Real Year Output per Hours CompensacompensaUnit and hour of of all tion per tion per labor quarter all persons Output persons hour (1) hour (2) costs -------------------------------------------------------------------------------------------------Indexes 1992=100 2001 2002 I II III IV 149.3 r149.7 r151.7 r153.7 158.3 154.9 151.8 148.6 106.0 r103.5 r100.1 r96.7 129.4 r131.3 r132.0 r134.3 105.3 r106.1 r106.4 r108.4 r86.6 87.7 87.0 r87.4 ANNUAL r151.0 153.4 r101.5 r131.7 r106.5 87.2 I II III IV r158.1 r160.7 r163.9 r166.5 149.4 151.2 152.6 151.5 r94.5 r94.1 r93.1 r90.9 r135.6 r138.2 r138.8 r141.7 r109.1 r110.3 r110.1 r111.9 85.8 86.0 r84.7 r85.1 ANNUAL r162.3 151.2 r93.2 r138.6 r110.3 85.4 2003 I r167.9 r151.3 r90.1 r143.6 r112.3 r85.6 II 169.4 150.1 88.6 145.5 113.6 85.9 -------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 2001 2002 I II III IV r-2.0 r1.0 r5.4 r5.5 -8.9 -8.2 -7.9 -8.0 r-7.0 r-9.1 r-12.6 r-12.8 3.1 r6.2 r2.0 r7.2 -0.6 r2.9 r1.1 r7.8 r5.2 5.1 -3.3 r1.6 ANNUAL r0.9 -6.3 r-7.1 r1.8 r-0.9 0.9 I II III IV r11.9 r6.7 r8.3 r6.5 2.1 4.9 3.8 -2.9 r-8.7 r-1.7 r-4.2 r-8.9 r3.9 r8.1 r1.6 r8.7 r2.6 r4.4 r-0.5 r6.6 r-7.1 r1.2 -6.2 r2.1 ANNUAL r7.4 -1.5 r-8.3 r5.2 r3.6 r-2.1 2003 I r3.3 r-0.5 r-3.7 r5.5 r1.6 r2.2 II 3.8 -3.1 -6.7 5.2 4.6 1.4 -------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 2001 2002 2003 I II III IV 0.5 r-0.2 r0.9 r2.4 -2.9 -6.3 -7.8 -8.2 -3.3 r-6.1 r-8.6 r-10.4 -1.1 r3.0 r1.1 r4.6 -4.3 r-0.4 r-1.6 r2.7 -1.6 3.2 r0.2 2.1 ANNUAL r0.9 -6.3 r-7.1 r1.8 r-0.9 0.9 I II III IV r5.9 r7.3 r8.1 r8.3 -5.6 -2.4 0.5 1.9 r-10.8 r-9.1 r-7.0 r-5.9 r4.8 r5.3 r5.2 r5.5 r3.6 r3.9 r3.5 r3.2 -1.0 r-1.9 -2.7 r-2.6 ANNUAL r7.4 -1.5 r-8.3 r5.2 r3.6 r-2.1 I r6.2 r1.3 r-4.7 r5.9 r3.0 r-0.2 II 5.5 -0.7 -5.9 5.2 3.0 -0.2 -------------------------------------------------------------------------------------------------See footnotes following Table 6. August 7, 2003 r=revised Source: Bureau of Labor Statistics 15 Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs, seasonally adjusted Real Year Output per Hours CompensacompensaUnit and hour of of all tion per tion per labor quarter all persons Output persons hour (1) hour (2) costs -------------------------------------------------------------------------------------------------Indexes 1992=100 2001 2002 I II III IV 123.1 r123.8 r125.6 r127.4 112.7 111.7 111.3 110.1 91.6 r90.2 r88.6 r86.4 134.7 r135.8 r138.6 r139.2 109.7 r109.7 r111.7 r112.4 109.4 109.7 110.3 r109.3 ANNUAL r125.0 111.5 r89.2 r137.0 r110.8 109.7 I II III IV r129.1 r130.4 r131.9 r131.8 110.2 110.8 111.4 110.1 r85.4 r84.9 r84.4 r83.5 r141.6 r142.9 r144.3 r146.4 r113.9 r113.9 r114.5 r115.5 109.7 109.5 109.4 r111.0 ANNUAL r130.8 110.6 r84.6 r143.8 r114.5 r109.9 2003 I r134.3 r109.9 r81.9 r149.8 r117.2 r111.6 II 135.7 109.6 80.8 152.0 118.7 112.0 -------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 2001 2002 I II III IV -2.5 r2.3 r5.8 r6.0 -6.0 -3.8 -1.4 -4.0 -3.6 r-5.9 r-6.7 r-9.4 -0.8 r3.3 r8.4 r1.9 -4.4 r0.0 r7.4 r2.5 1.8 r1.0 r2.5 -3.8 ANNUAL r2.3 -3.2 r-5.3 r3.6 r0.8 1.3 I II III IV r5.4 r4.2 r4.6 r-0.2 0.3 1.9 2.3 -4.6 r-4.9 r-2.1 r-2.2 r-4.4 r7.1 r3.5 r4.2 r5.7 r5.8 r0.0 r2.0 r3.7 1.6 r-0.6 -0.4 r6.0 ANNUAL r4.7 -0.8 r-5.2 r4.9 r3.3 r0.2 2003 I r7.6 r-0.6 r-7.6 r9.8 r5.8 r2.0 II 4.4 -1.0 -5.2 5.8 5.2 1.3 -------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 2001 2002 2003 I II III IV 2.1 r1.7 r2.5 r2.8 -1.9 -3.4 -3.5 -3.8 -3.9 r-5.1 r-5.9 r-6.4 3.1 r4.1 r4.1 r3.1 -0.3 r0.7 r1.3 r1.3 1.0 2.4 1.5 0.3 ANNUAL r2.3 -3.2 r-5.3 r3.6 r0.8 1.3 I II III IV r4.8 r5.3 r5.0 r3.5 -2.2 -0.8 0.1 -0.1 r-6.7 r-5.8 r-4.7 r-3.4 r5.1 r5.2 r4.2 r5.1 r3.9 r3.9 r2.5 r2.8 r0.3 r-0.1 r-0.8 r1.6 ANNUAL r4.7 -0.8 r-5.2 r4.9 r3.3 r0.2 I r4.0 r-0.3 r-4.1 r5.8 r2.8 r1.7 II 4.1 -1.0 -4.9 6.4 4.1 2.2 -------------------------------------------------------------------------------------------------See footnotes following Table 6. August 7, 2003 r=revised Source: Bureau of Labor Statistics 16 Table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor costs, unit profits, and prices, seasonally adjusted Output Hourly Real Unit Total Unit Implicit Year per allcompenhourly Unit nonunit proprice and employee Employee sation compenlabor labor costs fits deflator quarter hour Output hours (1) sation(2) costs costs(6) (7) (8) (4) ---------------------------------------------------------------------------------------------------------Indexes 1992=100 2001 2002 I II III IV r118.7 r120.0 r121.3 r124.5 147.9 147.8 147.7 149.6 r124.7 r123.1 r121.7 r120.2 r131.2 r132.6 r133.8 r134.7 r106.8 r107.1 r107.8 r108.7 110.6 110.4 110.3 108.2 111.6 113.5 115.5 114.1 110.8 111.3 111.7 109.8 93.1 95.4 97.9 107.6 109.3 109.9 110.5 109.6 ANNUAL r121.1 148.2 r122.4 r133.0 r107.6 109.9 113.7 110.9 98.5 109.8 I II III IV r126.0 r127.7 r128.7 r129.9 150.8 152.8 153.4 r154.5 r119.7 r119.6 r119.2 r118.9 r135.9 r137.3 r138.2 r139.1 r109.4 r109.5 r109.7 r109.8 107.9 107.5 107.4 r107.1 114.0 114.5 115.4 r115.2 109.5 109.4 109.6 109.3 107.6 107.8 104.6 r110.1 109.4 109.3 109.1 109.4 ANNUAL r128.1 r152.9 r119.4 r137.7 r109.6 107.5 r114.8 r109.4 r107.5 109.3 2003 I r131.3 r155.5 r118.4 r141.0 r110.2 r107.3 r114.6 r109.3 r112.2 109.6 ---------------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 2001 2002 I II III IV -2.6 r4.7 r4.4 r10.8 -3.3 -0.5 -0.3 5.4 -0.7 r-5.0 r-4.5 r-4.9 -1.2 r4.3 r3.7 r2.7 r-4.7 r1.0 r2.8 r3.3 1.4 -0.4 -0.6 -7.3 10.1 7.1 7.2 -4.9 3.7 1.6 1.5 -6.7 -20.2 10.0 10.8 46.1 1.7 2.2 2.2 -3.3 ANNUAL r2.0 -0.1 r-2.1 r3.1 r0.3 1.0 6.5 2.5 -11.7 1.2 I II III IV r5.0 r5.5 r3.1 r3.6 3.3 5.3 1.7 r2.8 r-1.6 r-0.3 r-1.4 r-0.8 r3.7 r4.2 r2.7 r2.6 r2.5 r0.6 r0.5 r0.6 -1.2 -1.3 -0.5 r-1.0 -0.2 1.7 3.1 r-0.6 -0.9 -0.5 0.5 r-0.9 -0.2 0.9 -11.2 r22.8 -0.8 -0.3 -0.5 0.9 ANNUAL r5.8 r3.1 r-2.5 r3.5 r1.8 r-2.2 r1.0 -1.3 r9.1 -0.5 2003 I r4.5 r2.8 r-1.6 r5.4 r1.5 r0.9 r-1.9 r0.1 r7.6 r0.7 ---------------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 2001 2002 I II III IV 0.9 r1.5 r1.6 r4.2 0.4 -0.1 -1.1 0.3 -0.4 r-1.6 r-2.7 r-3.8 3.5 r3.9 r2.7 r2.4 0.1 r0.5 r0.0 r0.5 2.6 2.3 1.1 -1.8 6.7 6.8 7.8 4.7 3.7 3.5 2.9 0.0 -22.0 -19.7 -10.6 9.2 1.3 1.3 1.7 0.7 ANNUAL r2.0 -0.1 r-2.1 r3.1 r0.3 1.0 6.5 2.5 -11.7 1.2 I II III IV r6.2 r6.4 6.1 r4.3 1.9 3.4 3.9 r3.2 r-4.0 r-2.8 -2.1 -1.0 r3.6 r3.6 3.3 r3.3 r2.4 r2.3 1.7 r1.0 -2.4 -2.6 -2.6 r-1.0 2.2 0.9 -0.1 r1.0 -1.2 -1.7 -1.9 -0.4 15.5 13.0 6.9 r2.4 0.0 -0.6 -1.3 -0.2 ANNUAL r5.8 r3.1 r-2.5 r3.5 r1.8 r-2.2 r1.0 -1.3 r9.1 -0.5 2003 I r4.2 r3.1 r-1.0 r3.7 r0.8 r-0.5 r0.6 r-0.2 r4.3 r0.2 ---------------------------------------------------------------------------------------------------------See footnotes following Table 6. August 7, 2003 r=revised Source: Bureau of Labor Statistics 17 SOURCES: Output data are from the Bureau of Economic Analysis and the Census Bureau of the U.S. Department of Commerce; the Bureau of Labor Statistics, U.S. Department of Labor; and the Federal Reserve Board. Compensation and hours data are from the Bureau of Labor Statistics 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 within 40 days of the close of the reference period; revisions appear 30 days later, and second revisions after an additional 60 days. In the business sector, the third publication (second revision) of a quarterly index of output per hour of all persons has differed from the initial value by between –1.4 and +1.5 index points approximately 95 percent of the time. This interval is based on the performance of this measure between the fourth quarter of 1995 and the first quarter of 2003. 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) The change for recent quarters is based on the Consumer Price Index for all urban consumers (CPI-U). The trend from 1978-2002 is based on the Consumer Price Index research series (CPI-U-RS). (3) Unit nonlabor payments include profits, capital consumption allowances, interest, rental income of persons, and indirect taxes. (4) Current dollar output divided by the output index. (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) Unit nonlabor costs include capital consumption allowances, interest, rental income of persons, and indirect taxes. For nonfinancial corporations, rental income of persons is zero by definition. (7) Total unit costs are the sum of unit labor and nonlabor costs. (8) Unit profits include corporate profits with inventory valuation and capital consumption adjustments.. 18 Appendix table 1. Business sector: Revised productivity, hourly compensation, unit labor costs, and prices, seasonally adjusted Real Year Output per Hours CompensacompensaUnit Unit nonImplicit and hour of of all tion per tion per labor labor pay- price quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4) --------------------------------------------------------------------------------------------------------Indexes 1992=100 1998 1999 2000 I II III IV r109.6 r109.6 r110.2 r111.5 126.7 127.3 128.7 131.3 r115.6 r116.2 r116.8 r117.8 r117.3 r118.8 r120.2 r121.4 r103.5 r104.5 r105.2 r105.9 r107.0 r108.4 r109.0 r108.9 r115.9 r113.9 r113.5 r114.1 110.3 110.4 110.7 110.8 ANNUAL r110.2 128.5 r116.6 r119.4 r104.8 r108.4 r114.3 110.6 I II III IV r112.3 r112.1 r113.1 r114.7 132.4 133.0 134.9 137.7 r117.9 r118.7 r119.4 r120.1 r123.9 r123.9 r125.0 r126.5 r107.6 r106.9 r107.0 r107.5 r110.3 r110.6 r110.6 r110.3 r112.7 r113.0 r113.9 r115.2 111.2 111.5 111.8 112.1 ANNUAL r113.0 134.5 r119.0 r124.8 r107.2 r110.4 r113.7 111.6 I II III IV r114.8 r116.6 r116.8 r117.5 138.4 140.3 140.4 140.7 r120.6 r120.3 r120.2 r119.7 r131.1 r131.9 r134.6 r135.9 r110.3 r110.1 r111.4 r111.7 r114.1 r113.1 r115.3 115.6 r110.4 r113.8 r111.0 r111.9 112.8 113.4 113.7 114.3 ANNUAL r116.5 140.0 r120.1 r133.5 r111.0 r114.6 r111.8 113.5 --------------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1998 1999 2000 I II III IV r5.2 r-0.2 r2.4 r4.5 7.5 1.9 4.4 8.2 2.2 r2.2 r1.9 r3.5 r7.4 r5.1 r4.8 r4.1 r6.7 r3.9 r2.9 r2.4 2.1 5.3 2.3 -0.4 r-2.1 r-7.0 r-1.3 2.0 0.5 0.5 0.9 0.5 ANNUAL 2.6 4.9 2.2 5.5 4.0 2.8 r-2.3 0.8 I II III IV 3.1 r-0.8 r3.6 5.8 3.4 2.1 5.9 8.4 r0.3 r3.0 r2.2 2.4 r8.3 r0.2 r3.5 r4.9 r6.8 r-2.7 r0.4 r1.9 r5.1 1.1 -0.1 r-0.8 r-4.8 0.9 3.3 r4.5 1.3 1.0 1.2 1.1 ANNUAL r2.5 4.7 r2.1 r4.5 2.4 1.9 r-0.6 1.0 I II III IV r0.5 r6.3 r0.7 r2.6 2.2 5.4 0.4 0.9 r1.7 r-0.8 r-0.3 r-1.7 r15.2 r2.6 r8.5 r3.9 r11.0 r-0.8 r4.7 r0.9 r14.6 -3.5 7.8 r1.2 r-15.5 12.9 -9.6 r3.2 2.4 2.2 1.1 1.9 ANNUAL r3.1 4.1 r0.9 r6.9 r3.5 3.7 -1.7 1.7 --------------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1998 1999 2000 I II III IV 3.4 2.3 2.0 r2.9 5.7 4.4 4.2 5.5 2.2 2.0 2.2 r2.5 4.8 5.8 5.9 5.3 3.4 r4.4 4.4 4.0 1.4 3.5 3.9 2.3 r0.6 r-3.4 r-4.1 -2.1 1.1 0.8 0.7 0.6 ANNUAL 2.6 4.9 2.2 5.5 4.0 2.8 r-2.3 0.8 I II III IV r2.4 2.3 2.6 r2.9 4.5 4.5 4.9 4.9 r2.0 2.2 2.2 r2.0 5.6 4.3 r4.0 r4.2 4.0 2.3 1.7 r1.5 r3.1 2.0 1.4 1.3 r-2.8 -0.8 r0.3 0.9 0.8 0.9 1.0 1.2 ANNUAL r2.5 4.7 r2.1 r4.5 2.4 1.9 r-0.6 1.0 I II III IV r2.2 r4.0 3.3 r2.5 4.6 5.4 4.1 2.2 2.3 1.3 0.7 r-0.3 r5.8 r6.4 7.7 r7.4 r2.5 r3.0 4.1 r3.9 3.5 2.3 4.3 r4.8 -2.0 0.8 -2.5 r-2.8 1.4 1.7 1.7 1.9 ANNUAL r3.1 4.1 r0.9 r6.9 r3.5 3.7 -1.7 1.7 --------------------------------------------------------------------------------------------------------See footnotes following Table 6. August 7, 2003 Source: Bureau of Labor Statistics 19 Appendix table 2. Nonfarm business sector: Revised productivity, hourly compensation, unit labor costs, and prices, seasonally adjusted Real Year Output per Hours CompensacompensaUnit Unit nonImplicit and hour of of all tion per tion per labor labor pay- price quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4) --------------------------------------------------------------------------------------------------------Indexes 1992=100 1998 1999 2000 I II III IV r109.5 r109.6 r110.2 111.4 127.0 127.7 129.0 131.6 r116.0 r116.5 r117.1 r118.2 r117.0 r118.5 119.9 121.1 r103.2 104.3 105.0 105.6 r106.8 r108.1 r108.8 r108.7 r117.1 r115.1 r114.7 r115.3 110.5 110.6 111.0 111.1 ANNUAL r110.2 128.8 r116.9 119.1 104.5 r108.1 r115.5 110.8 I II r112.0 r111.8 132.7 133.3 118.4 r119.3 r123.3 123.4 r107.1 106.4 r110.0 r110.4 r114.1 r114.6 111.5 111.9 III IV r112.7 r114.5 135.3 138.0 r120.0 r120.6 r124.4 r126.2 r106.5 r107.2 r110.4 r110.2 r115.6 r116.9 112.3 112.6 ANNUAL r112.8 134.8 r119.6 124.3 106.8 r110.3 r115.3 112.1 I II III IV r114.6 r116.1 r116.4 r117.0 138.7 140.5 140.6 141.0 r121.0 r121.0 r120.8 r120.5 130.8 r131.4 r134.2 135.3 110.1 r109.7 r111.0 111.2 r114.2 r113.1 r115.3 115.6 r112.0 r115.3 r112.6 r113.3 113.4 113.9 114.3 114.8 ANNUAL r116.1 140.2 r120.7 133.0 110.6 r114.6 r113.3 114.1 --------------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1998 1999 2000 I II III IV r5.0 r0.3 r2.0 r4.4 7.8 2.1 4.3 8.3 r2.7 r1.7 r2.3 r3.7 r7.2 r5.5 r4.7 r3.9 r6.6 r4.3 r2.8 2.2 r2.1 5.1 2.7 r-0.5 r-1.8 -6.8 -1.3 r2.1 0.6 0.4 1.2 0.5 ANNUAL 2.6 5.0 2.4 5.4 3.9 2.7 r-2.0 0.9 I II III IV 2.4 r-0.9 r3.5 6.3 3.3 1.9 6.0 8.3 0.9 r2.8 r2.4 1.9 r7.5 r0.3 r3.5 r5.7 r5.9 r-2.6 r0.4 r2.6 r4.9 1.3 0.0 r-0.6 r-4.1 r1.8 r3.8 r4.4 1.4 1.5 1.4 1.3 ANNUAL r2.3 4.6 r2.3 r4.3 2.2 2.0 -0.2 1.2 I II III IV r0.3 r5.7 r0.8 r2.2 1.9 5.4 0.2 1.1 r1.6 r-0.2 r-0.6 r-1.0 r15.4 r1.9 r8.8 r3.3 r11.3 r-1.4 r5.0 r0.4 r15.1 -3.6 r7.9 r1.1 r-15.7 r12.3 -9.1 r2.6 2.7 1.9 1.4 1.6 ANNUAL r3.0 4.0 1.0 7.0 r3.6 3.9 r-1.8 1.8 --------------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1998 1999 2000 I II III IV 3.2 r2.3 2.0 2.9 5.7 4.5 4.4 5.6 2.4 r2.1 2.4 2.6 r4.7 r5.7 5.9 5.3 3.2 4.2 4.4 r4.0 1.4 r3.4 r3.9 2.3 r1.1 -3.0 r-3.9 -2.0 1.3 0.8 0.8 0.7 ANNUAL 2.6 5.0 2.4 5.4 3.9 2.7 r-2.0 0.9 I II III IV 2.3 1.9 r2.3 r2.8 4.5 4.4 4.8 4.8 2.1 2.4 r2.5 r2.0 5.4 r4.1 3.8 r4.2 3.8 2.0 r1.4 r1.5 3.0 2.1 1.4 1.4 r-2.6 -0.4 0.8 1.4 0.9 1.1 1.2 1.4 ANNUAL r2.3 4.6 r2.3 r4.3 2.2 2.0 -0.2 1.2 I II III IV 2.3 r3.9 r3.2 r2.2 4.5 5.4 3.9 2.2 r2.2 r1.4 0.7 r-0.1 r6.1 r6.5 r7.8 7.2 r2.8 r3.1 4.3 r3.7 3.7 2.5 4.5 4.9 -1.8 r0.6 -2.6 -3.1 1.7 1.8 1.8 1.9 ANNUAL r3.0 4.0 1.0 7.0 r3.6 3.9 r-1.8 1.8 --------------------------------------------------------------------------------------------------------See footnotes following Table 6. August 7, 2003 Source: Bureau of Labor Statistics 20 Appendix table 3. Business sector: Productivity, hourly compensation, unit labor costs, and prices Indexes 1992=100 Real Output per Hours Compensacompensa- Unit Unit nonImplicit hour of of all tion per tion per labor labor pay- price Year all persons Output persons hour (1) hour (2) costs ments (3) deflator (4) ------------------------------------------------------------------------------------------------------1947 r32.7 20.7 r63.3 r7.0 r40.6 21.4 18.9 20.5 1948 r34.2 21.8 r63.8 r7.6 r40.7 22.2 r20.9 21.7 1949 r34.9 21.6 r61.7 r7.7 r41.9 22.0 r20.7 21.5 1950 1951 1952 1953 1954 r37.8 r38.9 r40.1 r41.5 r42.4 23.7 25.2 26.0 27.2 26.9 r62.6 r64.7 r64.8 r65.7 r63.4 r8.2 r9.0 r9.6 r10.2 r10.5 r44.2 r44.9 r46.8 r49.4 r50.6 21.8 23.2 23.9 24.5 24.8 21.8 24.0 23.4 22.9 22.8 21.8 23.5 23.7 23.9 24.1 1955 1956 1957 1958 1959 r44.1 r44.1 r45.5 r46.8 r48.6 29.0 29.5 30.0 29.4 31.9 r65.8 r66.8 r65.9 r62.9 r65.5 r10.8 r11.5 r12.2 r12.8 r13.3 r52.1 r54.7 r56.4 r57.3 r59.2 24.4 26.0 26.9 27.3 27.4 24.3 23.7 24.4 25.0 25.5 24.4 25.2 26.0 26.5 26.7 1960 1961 1962 1963 1964 r49.5 r51.3 r53.6 r55.7 r57.6 32.5 33.1 35.2 36.8 39.2 r65.6 r64.5 r65.7 r66.1 r68.0 r13.9 r14.4 r15.1 r15.6 16.2 r60.7 r62.5 r64.6 r66.1 67.7 28.0 28.1 28.1 28.0 r28.1 r25.1 25.5 26.3 26.9 27.5 27.0 27.2 27.4 27.6 27.9 1965 1966 1967 1968 1969 r59.7 r62.1 r63.5 r65.5 r65.8 41.9 44.8 45.6 47.9 49.4 r70.3 r72.1 r71.9 r73.2 r75.1 16.8 17.9 19.0 20.4 21.9 69.1 71.7 r73.6 76.0 r77.2 28.2 28.9 29.9 r31.2 r33.2 r28.7 r29.4 r29.8 r30.7 r31.0 28.4 29.1 29.9 31.0 32.4 1970 1971 1972 1973 1974 r67.1 r70.0 72.2 74.5 73.2 49.4 51.3 54.7 58.5 57.6 r73.6 r73.3 75.7 r78.6 r78.7 r23.6 25.0 26.6 r28.8 r31.6 78.6 80.1 r82.3 r84.1 r83.1 35.1 35.8 36.8 r38.7 43.2 r31.7 r34.5 r35.9 r37.8 r40.1 33.9 35.3 36.5 38.4 42.1 1975 1976 1977 1978 1979 75.8 r78.4 r79.7 r80.6 r80.5 57.0 60.9 64.3 68.3 70.6 r75.3 r77.7 r80.7 r84.8 r87.7 r34.8 r37.9 r40.9 r44.5 r48.8 r83.9 r86.2 r87.4 r88.9 r89.1 r46.0 r48.3 r51.3 r55.2 r60.6 r46.2 r48.7 r51.7 r55.0 r58.5 46.1 48.5 51.4 55.1 59.8 1980 1981 1982 1983 1984 r80.3 r81.9 81.6 r84.5 r86.8 69.8 71.7 69.6 73.3 79.7 r86.9 r87.6 85.2 r86.7 r91.8 r54.1 r59.2 r63.7 r66.3 r69.2 r88.9 r89.0 r90.5 r90.4 r90.7 r67.3 r72.3 r78.1 r78.5 r79.7 r61.7 r69.4 r70.5 r76.6 r80.6 65.2 71.2 75.3 77.8 80.0 1985 1986 1987 1988 1989 r88.5 r91.2 r91.6 93.0 93.9 83.1 86.1 89.2 92.9 96.2 r93.8 r94.4 r97.3 r99.9 r102.5 r72.6 r76.4 r79.3 r83.4 r85.7 r92.1 r95.2 r95.6 r97.0 r95.5 r82.0 r83.8 r86.6 r89.7 r91.2 r82.4 r83.0 r83.8 r85.8 r92.0 82.2 83.5 85.6 88.3 91.5 1990 1991 1992 1993 1994 r95.3 r96.4 100.0 100.5 r101.7 97.6 96.5 100.0 103.1 108.1 r102.5 r100.1 100.0 102.6 r106.3 90.7 95.0 100.0 r102.4 r104.4 96.3 r97.4 100.0 r99.9 r99.7 r95.2 r98.6 100.0 101.9 102.6 r94.0 r97.1 100.0 102.5 106.4 94.8 98.1 100.0 102.2 104.0 1995 1996 1997 1998 1999 r102.3 r105.1 r107.4 r110.2 r113.0 111.5 116.4 122.5 128.5 134.5 r108.9 r110.7 r114.0 r116.6 r119.0 r106.5 r109.9 r113.2 r119.4 r124.8 r99.4 r99.8 r100.7 r104.8 r107.2 104.1 r104.6 r105.4 r108.4 r110.4 109.4 r113.2 r117.0 r114.3 r113.7 106.0 107.7 109.7 110.6 111.6 2000 r116.5 140.0 r120.1 r133.5 r111.0 r114.6 r111.8 113.5 2001 r118.8 139.8 r117.6 r138.6 r112.1 r116.7 r114.3 115.8 2002 r125.1 143.5 r114.7 r142.5 r113.5 113.9 120.4 116.3 ------------------------------------------------------------------------------------------------------See footnotes following Table 6. August 7, 2003 Source: Bureau of Labor Statistics Appendix table 4. Nonfarm business sector: Indexes 1992=100 21 Productivity, hourly compensation, unit labor costs, and prices Real Output per Hours Compensacompensa- Unit Unit nonImplicit hour of of all tion per tion per labor labor pay- price Year all persons Output persons hour (1) hour (2) costs ments (3) deflator (4) ------------------------------------------------------------------------------------------------------1947 r37.3 20.3 r54.4 r7.4 r43.1 19.9 r17.9 19.2 1948 r38.3 21.2 r55.3 r8.1 r43.4 r21.1 r19.5 20.5 1949 r39.6 21.0 r53.1 r8.3 r45.3 21.0 r20.1 20.7 1950 1951 1952 1953 1954 r42.2 r43.3 r44.1 r45.1 r46.0 23.1 24.9 25.6 26.9 26.4 r54.8 r57.4 r58.0 r59.5 r57.4 r8.8 r9.6 r10.1 r10.7 r11.0 r47.3 r47.7 r49.3 r51.7 r53.0 r20.9 22.1 r22.9 23.6 23.9 r21.0 r22.6 22.4 22.4 22.5 20.9 22.3 22.7 23.2 23.4 1955 1956 1957 1958 1959 r47.9 r47.5 r48.8 r49.8 r51.8 28.6 29.1 29.7 29.1 31.6 r59.8 r61.2 r60.9 r58.3 r61.0 r11.4 r12.1 r12.8 r13.3 r13.8 r55.1 r57.7 r59.0 r59.7 r61.6 23.8 25.5 26.3 26.7 26.7 r23.8 r23.2 24.0 r24.3 r25.1 23.8 24.7 25.4 25.9 26.2 1960 1961 1962 1963 1964 r52.4 r54.2 r56.6 r58.6 r60.4 32.1 32.8 35.0 36.6 39.1 r61.3 r60.5 r61.9 r62.6 r64.8 r14.5 r15.0 r15.6 r16.1 r16.6 r63.2 r64.8 r66.7 r68.1 r69.4 r27.6 27.6 27.5 27.5 r27.5 r24.5 25.0 r25.9 26.5 27.3 26.5 26.7 26.9 27.1 27.5 1965 1966 1967 1968 1969 r62.2 r64.5 r65.6 r67.7 r67.8 41.9 44.9 45.7 48.1 49.5 r67.3 r69.6 r69.6 r71.1 r73.1 17.2 18.2 19.3 20.7 r22.1 r70.6 r72.6 r74.7 r76.9 r77.9 27.6 28.2 r29.3 r30.5 32.6 r28.3 r29.0 r29.5 30.4 r30.6 27.8 28.5 29.4 30.5 31.9 1970 1971 1972 1973 1974 r68.8 r71.6 r74.0 r76.3 r75.1 49.5 51.4 54.9 58.9 58.0 r71.9 r71.7 r74.2 r77.2 r77.2 23.7 r25.2 r26.8 r29.0 r31.8 r79.0 r80.6 r82.9 r84.5 r83.5 34.4 35.2 36.2 r37.9 r42.3 31.3 r34.0 r35.0 r35.4 r38.1 33.3 34.7 35.8 37.0 40.8 1975 1976 1977 1978 1979 r77.1 r79.9 r81.2 r82.2 r81.9 57.0 61.1 64.6 68.8 70.9 r73.9 r76.5 r79.5 r83.6 r86.6 r35.0 r38.0 r41.1 r44.7 r49.0 r84.3 r86.5 r87.8 r89.4 r89.5 r45.4 r47.5 r50.6 r54.4 r59.8 r44.7 r47.6 r50.7 r53.5 r56.6 45.1 47.6 50.6 54.1 58.7 1980 1981 1982 1983 1984 r81.7 r82.7 r82.3 r85.9 r87.7 70.2 71.6 69.4 73.8 80.0 r85.9 r86.6 r84.3 r85.9 r91.1 r54.3 r59.5 r64.0 r66.7 r69.5 r89.3 r89.6 r91.0 r91.0 r91.2 r66.4 r72.0 r77.8 r77.7 r79.3 r60.6 r67.8 r69.6 r76.4 r79.6 64.3 70.5 74.8 77.2 79.4 1985 1986 1987 1988 1989 r88.9 r91.6 r91.9 r93.4 r94.1 83.0 86.2 89.3 93.3 96.5 r93.4 r94.1 r97.1 r99.9 r102.5 r72.8 r76.6 r79.5 r83.4 r85.6 r92.4 r95.5 r95.8 r97.0 r95.4 r81.9 r83.6 r86.5 r89.3 r91.0 r81.8 r82.6 r83.4 r85.6 r91.5 81.9 83.2 85.4 87.9 91.2 1990 1991 1992 1993 1994 95.3 r96.5 100.0 100.5 101.8 97.8 96.6 100.0 103.3 108.2 r102.6 r100.1 100.0 102.9 r106.3 90.5 95.0 100.0 102.2 104.3 r96.1 r97.4 100.0 99.7 r99.6 r94.9 r98.4 100.0 101.7 102.5 r93.7 r97.2 100.0 103.0 106.9 94.5 98.0 100.0 102.2 104.1 1995 1996 1997 1998 1999 r102.7 r105.3 r107.4 r110.2 r112.8 111.8 116.7 122.7 128.8 134.8 r108.9 r110.8 r114.2 r116.9 r119.6 r106.5 109.8 r113.0 119.1 124.3 99.4 r99.7 r100.5 104.5 106.8 103.7 r104.3 105.2 r108.1 r110.3 110.4 r113.4 r117.9 r115.5 r115.3 106.1 107.6 109.8 110.8 112.1 2000 r116.1 140.2 r120.7 133.0 110.6 r114.6 r113.3 114.1 2001 r118.3 140.1 r118.4 r137.8 r111.4 r116.5 r116.1 116.3 2002 r124.7 143.9 r115.4 r141.7 r112.8 113.6 122.5 116.9 ------------------------------------------------------------------------------------------------------See footnotes following Table 6. August 7, 2003 Source: Bureau of Labor Statistics
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