Full text of Productivity and Costs : Third Quarter 1972

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-

v
U. S.
NEWS III

DEPARTMENT OF LABOR

OFFICE Of IKfORMITlON , WISHINGTON , I . C. 21211

~uU.u

USDL - 72- 741
FOR RELEASE: 11 : 00 A.H., E.D.T.
friday, O<:toO" 27. 1972

of L&bor Statiotioo

II. M. Ei .. nb .. , (202) 96J,-339~
K. O. Hoyla (202) 961-2913
homo:

33]-1)84

1n ,ha . . tond quartu but "'''" ann .. than the long-un i,,,,,,11 raU of 3 . 0 percent

In ,II. nnohn .. ctor productivity

.cc.hrat.~,

rl0 1ng 6.2 pe<oa nt duriog the third

Over the four quarter pa r iod e nding with th e third quarter of 1972, th e n t ... of

•• ctor, and 3.6 percent 1n manufacturing.
~c.nt ehangQ' 1n productivity, hourly compo" •• ,!"", and'unlt lobor co.'_ at anDual

P!RCEm CIlA.'iG! AT ANIIIL\.L RAU (S. uondly AdjUlUd)
Second Quarter

1972 to
Third OU ..... , 1972

Total Priva ta

Output per .an-hour

;. ;

c-.penntlcn per ..... -hour

U

Unit lobor co.'_
a..1 coar-nsatlon par .an-hour

0.>
0. >

eo.pen..tion por .an-hour
Unit 1111>0r ccu.
Ileal cc.p.nuticn pu san-bout



;

>.,

>.•
0.;

...
L>

;

U

'"

..
;

;.;

llanufactu~tng

OUtput p4t man-hout

..

'"
u
'"
0.'

Pri" . . . Honfarm

p4r san-hou r
c:...p.mu.icn p4r san-hour
Unit 1111>0r coou
Real rcmponsatlon ~ r .an-bour

Output

Thl rd Qu.art . .
1911 to
Third Quarter 1972

;. ;

".

.
l.'
..

;

'.0

,

,.

in .an-bours aLoo dfclln.d but tbe 4ifforlncI va. =uch . . .111. -- fro. 3.8 r-rcent In tho

Io'h ll. thul .... dao • 11,.01"""" in thl .1.0 o f g."".h 1n output In tho DOntanll

_t

Val • •udh .,••••• d... l •••• 10n in tho ,''''''h io men- hours -- from I S.2 perclnt annulI
•• t. h

th . .cood q....... r to .. 0.9 "",.cent ....

1~

th. third .

of th. fall off ill

the rat. of 10c.",, , 10 "",,-hours .... 4u<o to dacuases 1n the 1.",,11> o'f .""l~nt.

The hll off 1n the ",""ufacturinl produetlvHy gain "". due pri"",rUy to th e dow-

•

d""n In ,he Ir.,.,th of NtI.,f.ctudnl output tr.,.. .. "ory hl&1> 14.8 percent in th .... tODd

quart o. t o 4.6 pe rcent 10 the third q..... t ••.

r a t . o f 4. 2 perceot.

Thb .lso . a pr.-en .ad ..... decline fro. tha . ."ond quarte,..

th" othu lIand , in th .. oonh"'" "et c< the rn e of incre....... S.9 perunt, up fro.




On

,

. . . . . . i t Io1as in t il. . . cond q .... rtn .

eo.p ...d

w1th th e third q"a",a .. In 1971.

for the nontan. ..etor, and 6.0 p&runt In the ....nut-crodn' ..eto r.

rata

1~

the 'IIll'd <I""",e., h .... 2.'

JMlI'~t

annual rata In the pun" ... q..... ter, as

In the ueond qu.arur to 1.2 per ..... In .b. third quuter.

In --,,,fattur1"g. r u l hourly ''''"p .... nl'''' ..... 1.2 peru". during the ht ... quartu.

al.ott the .... as t he 1.5 parton. Inc..... In the •• cond quartet.
POI' the yur a ..,I1", .. ltll the tblrd quarter of 1973. u&l " . . pe..u.l"" par ....-

hour !oc •• asad 2.6 petCeDt 10 the privata aeon.."

2.9 percent 10 the nonfar. •• etor,

and 2.8 poreant In manula't" rl " •.
IIDI. labor coat. In the prlvue ... tor Inc ..... -.I
0 . 5 percent --

e~ .... d

tha quarter --

"ith • dlCht ""tllne of 0.6 pucut durin, the . . .and qu ••• e ••

In the nonfal"ll. 0.0<01', unit lobor cOlti .onUnue", to dorUn 111tJ>tly, dO<ol" 0 . 3 pucene,

In lin. with the O. S percent decline In the ueOtld qu.rter .
p . od~"~lvi~y




he ..... of the fall off of

auno vith no chan •• in the uta of Increas. In hou.ly COllP ..... t101l.

,

lIIIlIlufaoturlng

=< labor cco u

!nc .. asad n

1 . 6 pe r cent in th l ucond quarte . .

a 1 . 5 percent ann"",l rat e . afte r declining

Over the corruponding quartu of a year a go,

t h e incr. a. a In ""It hbor co... " . . 1 . 3 pucent in the private .ector, 0 . 8 percent In

tha nonfarm n ttor, and 2 . 4 pa<can, in manufacturing .

Unit nonlabor

poy~nt.

In th e privat a

ecooo~

(whldh includes capital tcn.umptlon

all"". nc " , na t intarut, indlue, bu.!n ... . ,axu, and profiu) IncH .... d n

rna of 4.6 percent , <""p .... d "It II 6.0 perce nt In tha n CO<Id qu.n o r.

an annual

"oho1la,.

deederation otcurud In ,h. n<>niarm u ctor "h e ... the raU s l "" . d to 3 . 6 pa rcent In th ..

tUrd quarte • • dcown trOll. 5.2 p orcent In the .. cond quute r.
During t1•• third quan e r, prices ... "''''"rod by the 1 .."lIdt pric e ddlator
(which uU ocU elIanges In un1< hbor ,<>C'O, unit profl, o , and other non labor cOSto)

ro •• by 2.0 perc ent in tho private s ector

~-

up s l ightlY fro. 1.7 percent in the .e ccnd
down ol!ghtly from. 1.5

pe.<ce nt inc ... ... . in the se cond quarter.

For ,he Hrn U . . . . inc. 1965 ( ex cluding tho

pedod ot th O "ogo, pdce, n nt h e ue), prlc. inc r ....... over 0 6 I:I¢;\th p e riod have
l~s

been

than 2.0 percent In th O pr!vot. ' Oetor Bnd

l.~

pe rc ent In the

\lithin th e nonfartll se ctor, tho slowdOl."" I,. th d ..... nd f"jIr

tho chong. In

~ - hour " ,

l~or,

nonf.~

• • ctor .

as ufl e cted in

was wide' pread amofiS 'he industry divis ions, with th o major

""coptlon of Utvl.co Industri es .

In manufacturing and trade, whe .. e mplOYe8

account for 50 p e rce nt of t ho n""tar.. total, tho chong. "' a' sub.. antlal.

~ -h oun

The detH".

rBg1ot uod by tho "nth.,· ' c.ugory " .... due lugd y to 0 shuI' nduction In postal-e ervlce

""ploy .... '"




In hly .

(s. . Tabh B.)

5

Table B.

Percent Change in Man-hours
(Percent OIang" Over Previous Quarter at Annual Rate)

1972

Industry

n

1972

m

5.2

o.•

Mining

8.8

8.2

Construction

2.8

2.8

Manufacturing

>.8

U

Public Utilities

4.'

U

Trade

5.8

1.5

Private )lanfarlll

Transportation and

Finance, Insurance
Real Estate
Se rvices
Others

~I

11

~,

4.2
4.0
5.1

-

2.3
7.1
'.8

Includes government "nterprises. priVate household. proprietors, and
UDpaid family workers.




Table l.

Total PrlYlte Eeona.y. ~tpu' per Han-baur, Hourly Co.penoatlon, ~"
Cae • • and Prte.. , Se.. ond1y AdJ ... ted, (lnd ...... 1961 • 100)
Rad

Yur and
qua r ter

Output per
"n-hour

1911
1.0 t •.•
2nd •.•
3rd .•.
4th . . .
Annual .4.ve.
1972
lot • ..
2nd . ••

lrd .••
1911
lot ...
2nd ••.
J.d ...
~th .. .
AnnulI Ave.
1912
lat • ..
2nd . . .
3rd . . .
1971
Lat. . .

2nd •••
lrd •.•

4th •..
1972
1st . . .

101.0
107.6
108.5
109 .•
108.1

108.1
109.1
llO.4
110.3

110.5
112.2
113.2p

114.1
117 . 1
118.8p

103.4
104.4
105.0p

I.'

'.1
'.1

...,..
'.1

.. ,

J.7p

..,..,
..,.,,
I.!

2nd • . •

..,

lrd •..

4.3p

112.3

don per
...... hour
1)0.6
132.5

,.,
,,...

'"'
,.,

I.'
10.2
6.lp

..

•. I
7.6p

...

3.1p

,~,

Unit nonlabor pay..nU

"

t .pllcH
prlcI
ddhtor
111.0
118.2
119.0

136.0
133.4

109.1
110.4
111. 3
111.6
110.6

138.8
140.7
142.2p

112 . 2
112.9
111 . 0p

125.7
125.5
125 . 6p

112.6
114 . 3
US.6p

120.6
121.1
121.7p

10.5

..,
,.,
'"'
..,

114.4

,..
,..,..
'"'

'"'
'"'

Unit labor

121.0
123.2
123.9
124.2
123.4

......,

,,

Qua . . . .

et

....,
.. ,
•••,

5 . 7p

-~,

,..
'"'

I.!

2.6p

l'

,.•••,

.....,

,. ..,
,•..••

I.!

,.,
,.,'"'..,
,.,

,....,

bU
U

'"'

0.5p
2 .3p
4.2p
Percent o.ang. Over Prty!o ... tur
- 2.2
I. ,
- 1.1
- 0.3

, •
,.,
,.'"',
,..

...
,.,

11

eaoopa""atlonper
"",,-hour 2/
109.2
109.7
110.2
110.8
109.9

Putant o.lnal Over Prevl.,...
•. I
'.1
U
- 0.6
•. I
I.'
I.'

S... footno,," .. Ind of tabl" 3 .




~-hour l

101.6
101.9
101. 8
102.6
102.0

,.,
'"'

iI

Output

CoapQllIIa-

..... ,

0.5p

II

..,

,,....
..,.,,
...

1. 3p

118.4

•. I

..,

U

4.6p

2.0p

I.'

,. I

..,
•..,••

3.ap

'"'

•••
•••
..,
,.,

,.

119.3

,. ,
..,
2.2p

prdl.1Q.1ry
NOTE: Dltl hIve h.an ravl.ed to reflect new bench... ~.
t.Yi.lona of .a.lllr da," Ippel' on AppendlI Table 4.

"

T.ble 2.

leu ..,d
qua .. ar

Output par
_n-hour

'.lv.te ~onf.re Stctor: .~tput pt . Han-hour, HourLy Ca.peno.tlon, Unlt
Coat, and 'rice., Scaoonal1y AdJ uoud , (Indu.. 1967 - LOO)

Output

"",n-hou...

ud
C_t"..Cooope". .. <ion per
Hon per
....... hour 1/ ..,,-hour

1971
loot •..
2nd ••.
lrd ..•
4th •••
Annual Ava.

L1l5.8
11)6.6
107.1
108.5
107. L

108.7
109 .8
1I1l.5
112.7
110 ••

102.8
103.1l
11l3.1l
101.8
101.2

U8 . 8
13L.2
132.9
134.5
131.8

11l7.8
11l8.6
L1l8.9
L09.6
L08.7

1972
loot ..•
2nd .•.
Jrd ..•

L09.9
111. J
111.01'

114.9
117.8
119.8p

104.5
105.9
106.1p

137 . 4
139 .0
141.01'

Lll.1
IIl.S
112.1p

..,

..,
,.,

1971
l e t ...

2nd ...
l.d .•.
4th ...
Annual Ave.

1972
In ...

2nd • . •
lrd •.•
1971
let •..

2nd . . .
ltd .••
4th •..
1972
ht ..•
2nd •••

Jrd •.•

."




..
,..

,,.,
..,
'"'

,. ,
..,
6.2p

,,.,..

...•••

,..

•••
S.lp

Parcant Ch.nse OVer P.evioua

..,
..,
'"'
..,

8.6~

0.'

,.,

0.>

0.'

>.0

10 . 6
7 . 1p

•

.....,

,,.,..
0.9p

,
,,.,

8.S,

foot ....... at and ot t abla

3.0p

~.

•••
,.,
..,

•••
5.9p

,,.,.,

,. , "

Quart ...

•••
..,
..,

,..

6.1p

Unit non-

'N'

hbor P'Y_ob 11
109.S
111l.S
111.3
LLL.]
110.7

LL7.L
118.1
119.1
119.1
118.4

125.0
124.9
124.&p

112.2
113.7
114.71'

120.2
120.6

..,
..,
0.'
'"'

Annual Rate

...

...
,..

U

,.,
..,
2.2p

'"'
,..

,.'.0,
2.9,

l.pUele
prict
defhto r "

121.8
121.0
123.8
121.9
12].2

>.0
U

Pucent Chanse OVal' Prevlo ... Y•••
U
U
'.0
U
0.'
U

.. ,. ,
.. ...

L,

,.,

"

Unit "bor

- 0.5
- 0.5p

11

,,.,
..' .0
U

,.,
,.,
0.0,

,;

12I.Op

..,

,.,
,.,
..'"',

10.1

'.0

U

o. ,

..,
,.,
.. ,

,.,,. ,

LIp

J . 61'

..•••,

,....,
,.,
...

'.0,

,. ,
•,•.••••
..,

...

,.

1.6p

,ralloolnary
NOTE: Data h.". bun ..... hlld t o reflact nev ben~ _rk.a. .. ..1.1..... of ... Uu den .pp.. ar On Appendt"
T.bla 4.

Table J.

Year end

Output p.. r
un-hour

quart .. r

Kanufecturlng Secto r , Output per Mao-hou r, Hour ly eo.pen.etlon, end
Unit Labor Coste , S...onelly Adjusted (Ind •••• 1961 • 100)

Output

!I

Kan-houu

~ .... e tlon

....,-hour

1911
11ot. ..

lU.4

106.)
108.2
107.9
108.7
107.8

93.3
94.3
H .2

116.6
118.5
119 . 3p

111.1
U3.0
116.3p

95 . 3
97.0
97.3p

112.6
lU.1

2nd ...
Jr<! .• •

lU.)

hh ...

113.1

Annual

JIVe.

9~.~
9~.3

,0<

"

I«Id Cow.ll<'nlaUon

poor Un-hour 2/

128 . 2
llO.0
131.2

Unit labo r

co.t,

1l0 . 3

101.)
101.6
107.6
l07 .8
107 . S

113.9
111.3
113.8
114.9
114.0

135.9
137.5
139.1p

l09 . 9
110 .3
UO.6p

116. 3
116.0
116.Sp

132 .2

1972
t al ..•

2nd ...
3.d •.•

..

1911
I n •..
2nd •..
lrd ...
4th •••

18t ...

2nd ...
3rd . •.
1971
In ...
2nd •••
J rd ...
hh .. .
1972
1st ...

2nd •.•
lrd •.•
,~

..

,
,..

,

..

,.,

.. ,
,
... ,,

,. ,
..,

LO

Mnual Ave.
1972

,. ,
,.,

,
,.,

H.8

"

•••
3.3p

....,.,,,
,.,
,....,

,. ,

Perceat Chan,e Ov •• P •• ~lOUf Quarter at Annual bU
16.6
M
- 0.3
L>
- 0.3
U
U

3.6p
fooUlotn .. end of table 3 .

14 .8
4.6p

•••

1.2p

...,.,•••

•...••

.. .,

•••
..,

11. 3

•••

..,..,..,
...

Pncant Chaose OVer Pnvl_ Year

...

.... ,,
U

7.8p

- 7.1
- 5.1
- 4.0

.. ,
•••
,..

4.1p

"

•••
,.,

..

•,••

6 .0p

1. 2p

l'

,......,
,.
,.,
,

,,....,

..,

,,.,..
..,

•••

,..

-L6
1.3p

,,...,

•••

- 0.2

,,.,..

2 .4p

p - p reU.ha.,.
IfOTB: Data beve b .. n revle.d to refl.c. new bench-

u,ke. "'vhl"". of e.rl1e r data .pp.a. on Appendix
T. Ie 4.



roem'OIES, TABLES 1 TO 3
Source: Output data fro~ the Bureau of Econo~c ~~alysis,
U. S. Department of Co=erce ac~ the Federal Res " tve Board. Compensation and man-hours data froc the Bureau of Labor St a tistics,
U. S. Depart~ent of Labor ~~d the Bureau of Economic ~~alys1s.

•

1/ ;,tages and s alaries of "",ployees plus "o:ployers' contributi(ms
for social i nsurance and private be •• efit plans. Except for nonfinancial
corporati~ns, where chere are no self-employed, data also includes an
estimac" of wages, salaries and supplemental payments for the selfecployed.
II Compensation per man-hour adjusted for changes in the
rrice Index.

Consu~er

11 Nonlabor payments include profits, depreCiation, interest,
renr al income and inJirect taxes.

il Current dollar gross product divided by constant dollar
gross product.
11 Percent change compounded at annual rate from original
data , rather than index numbers.
_~I

Percentage change of annual average.

21

Current 'I.uarter divided by comparable quarter a year ago.

!I Quarterly measures adjusted to annual esti~ates or output
(gross product originatir.g) from the Bureau of Economic Analysis,
U. S. Department of COI:Jmerce.
21 Unit nonlabor costs include depreciation, interest and
indirect texes.
la/ Unit profits include corporate profits and inventory valuation
adjustment.







Appendix Table 5.
S..-ary of Revisionll in Productivity Md
Casu , 1969 M71
Percent o,ange Fro .. PrevioUli Year

revi-

d=
Private
1969 . .
1970 . .
1971. .
Private
Nonfano.
1969 . .
1970 . .
1971. .
l1anuhcturing
1969 . .
1970 . .
1971. .




Prev- Differ,O~
ence

0.'
1.0
'.6

0.'

MO.1

0.'
'.6

revl-

"00

1.1
3.7

0.2
0.1
0.1

L6
7.6
7.1

0.0
0.7
3.7

0.1
0.1
0. 1

Prev- Differ,O~
enee

,..

Unit labor costs
1972
ravi- Pre".... Differ,,= 'O~ ence

7.1
6.'
3.'

7.0
6.'
3.0

0.1
0.1
0.'

0.'

6.'

0.0
0.1
0.2

7.0
7.2
7.1

7.0
7.2
6.'

0.0
0.0
0.2

7.2
6.6
3.4

7.0
6.'
3.1

0.2
0.1
0.3

6.3
7.1
6.'

6.'
7.0
6.'

-0.2

3.'
6.'
0.'

U

\

..

2.5
0.7

,

2.6
0.6

,.,

0.1
0.1
0.2

d=

0 .1
0.3

,..

6.3
0.'

0.0
0.1
0.0

Pr a"....
'O~

Difference

o. ,
o. ,

6.0

I.'

0.6
2.2
6. '

0.'

0.1
2.1
6.1

0.2
2.3
6.6

0.3
0.2
0.'

CH RRT 1. PRODUCTIVITY. HOURLY
COMP ENSAT IO N. UNI T COSTS AND
PRICES--TOTAl PRI VRTE ECONOMY
(PERCENT CHANGE FROM PRECEDING
QUARTER AT ANNURl RRTE)
,
III :

:; . 7 i,
~~--~------~----------- - ,
--------- ----j-, --- --- -- --- -f, -------.----,,
,,

,
,

f'=~~----<>C--!

,
III :

COMPENSRTiON PER MRN HOUR

4 . 2:,
,,
,

-- --..:-- ._--- --- ----

'-~l- ........ -.. - ~,... -- --.... -..,, - ....... --. -·1, - -.. ------

,,

,

,,,

,

"

5
0

-5

"
"
5
0

"

UNIT LRBO R COSTS

"

III •
0.5 :

5
0

"

UNI T NONLRBO R PRY MENT S

'"

• _6

,
--· ------·---l-----··
· ---··~-----·--------,--r

-"'l-/'
.,
.,,

P>--o-- -. ----- --- -- ---

-- ----

, .
.
,,

.- --··-· .. · -t, .... · .. · -. ,,-'-

---~-

,

,
-----------1-------------1-------------+------·---·-,
,
,
'
"
""

"
""

PRICE
OEfLRTOR
,

,

-. - -- •• -- - -- -1-- - -- ... - .-•• ,'--.

,
,

._-----

--,

"

5
0

,,

-5

,,
,,

5

----------,,- --------~ ~-~1.------------ j "
,

0
196 7




196B

1969

1970

1971

1972

OCT

1973

:zr .

1972

,

CHART 2. PRODUCTIVITY. HOURLY
COMPENSATION . UNIT COSTS RND
PRICES - -PRIVATE NONFRRM SECTOR
(PERCENT CHANGE FROM PRECEDING
QUAR TER AT ANNUAL RA TE )

,,'

-

OUTPUT
PER MRNHOUR
,,
,,

..........•.............
,,
,, .....
--_.. . _- - .. :

,--:

-. ~

- , --··-·· -· ·-··i, ·· ··-··- - --·~·--··········

,
,,

,,

III
,.,

"'-_/

,,
-----+-,, -- --- ----_.
,,
,
,,,
,,
,,,
,,

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UNIT LABOR COSTS

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III
-0.3
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PRICE
OEfLRTOR
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III
1 •I

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3-6 :

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UNIT NONLABOR PAYMENTS

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10

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COMPENSRTION PER MRNHOUR

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1967




1966

1969

1970

1971

1972

OCT 27

1973
1972