Full text of Productivity and Costs : Third Quarter 1982

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News

Bureau of Labor Statistics

United States
Department
of Labor
Washington, D.C. 20212
USDL 82-389
For Release 10:00 AM EDT
Thursday, October 28, 1982

Historical, technical
information: (202) 523-9261
Current data:
(202) 523-1221, 1208
Media contact: (202) 523-1913
PRODUCTIVITY AMP COSTS;

T h i r d Quarter 1982

According to preliminary measures, productivity (output per hour of all persons) increased
during the third quarter in all of the sectors of the economy for which the Bureau of
Labor Statistics of the U.S. Department of Labor prepares quarterly measures. However,
the gains in productivity reflected declines in hours and employment. Output advanced in
the business, nonfarm business, and nondurable goods sectors, but declined in durable
goods manufacturing. Hours declined 1n every sector.
The broadest measure, covering the business sector as a whole, showed that productivity
advanced at a 4.0 percent annual rate, an increase greater than any since the 5.6 percent
gain during the f i r s t quarter of 1981• Productivity is now at an all-time high 1n this
sector, surpassing the previous peak set 1 year ago.
Other third-quarter productivity measures showed increases at these annual rates:
3.6
7.1
6.4
7.9

percent
percent
percent
percent

in
in
in
in

the nonfarm business sector,
manufacturing as a whole,
durable goods manufacturing, and,
nondurable goods manufacturing.

All of these measures —which are preliminary— are summarized in table A and appear in
detail in tables 1-5. In addition to productivity, the measures include output, hours,
hourly compensation, and unit labor cost, as changed from the previous quarter and the
same quarter of the previous year. All measures are seasonally adjusted annual rates.
A revised estimate of the productivity of nonfinandal corporations shows a second-quarter
increase at a 2.9 percent annual rate. The revised measure for nonfinandal corporations
is summarized in table B and appears in detail 1n table 6.
Table A. Productivity and costs: preliminary third quarter 1982 measures
(Seasonally adjusted annual rates)

Sector

Business
Nonfarm business
Manufacturing
Durable
Nondurable

Productivity
4.0
3.6
7.1
6.4
7.9

Hourly
compenOutput
Hours sation
Percent change from preceding
1.4
0.7
-1.9
-5.5
3.3

-2.5
-2.8
-8.5
-11.2
-4.3

6.2
6.6
6.5
8.0
4.7

Real
hourly
compensation
quarter

Unit
labor
cost

-1.3
-0.9
-1.1
0.4
-2.7

2.1
2.9
-0.6
1.5
-3.0

Percent change from same quarter a year ago
Business
Nonfarm business
Manufacturing
Durable
Nondurable




0.3
0.3
-0.8
-1.5
0.1

-2.5
-2.5
-10.1
-12.9
-6.1

-2.9
-2.9
-9.4
-11.5
-6.1

6.9
6.9
8.7
9.2
8.6

1.1
1.1
2.8
3.2
2.7

6.6
6.6
9.6
10.9
8.5

-2Business sector
A modest increase in output coupled with a larger decline in hours Resulted in a
gain in third-quarter productivity. (Also reflected is a gain in f&rm product i v i t y . ) The 4.0 percent productivity increase in the business sector reflected
1.4 percent gain in output, the largest increase since the 1.9 percent during tfi
third quarter of 1981, coupled with a 2.5 percent decline in hours of all person
(table 1 ) . The index (1977=100) of productivity reached 101.3 in the third quar
the highest level ever recorded in this series, which begins with data for 1947.
The previous peak of 101.0 was set during the third quarter of 1981.
The decline in hours resulted from a 1.7 percent f a l l in employment and a 0.8 pe
cent decline in average weekly hours. This was the fourth consecutive quarterly
decline in employment in this sector.
Hourly compensation, which includes employer outlays for wages and salaries as w
as payments for social security, private pension and health plans, and other
employee benefits, increased at a 6.2 percent annual rate. This was the slowest
rate of increase in hourly compensation since the 6.1 percent gain in the second
quarter of 1977. During the second quarter of 1982, hourly compensation had ris
at a 6.9 percent annual rate.
Real hourly compensation, which is adjusted for the increase in the Consumer Pri
Index for All Urban Consumers (CPI-U), declined 1.3 percent in the third quarter
compared with a 2.2 percent gain during the second quarter.
Unit labor cost --which shows the effect of changes in hourly compensation and
productivity-- increased 2.1 percent, compared with a 5.5 percent gain during th
second quarter. This was the smallest increase in unit labor cost since the 1.7
percent decline during the f i r s t quarter of 1977.
The implicit price deflator --which measures price change in a sector and reflec
changes in both unit labor cost and unit nonlabor payments— increased at a 5.0
percent annual rate in the third quarter, compared with a 4.3 percent gain durin
the second quarter. This was the fastest gain in prices in the business sector
year.
Nonfarm business sector
The 3.6 percent gain in nonfarm business productivity was the largest increase i
this sector since the 4.9 percent gain during the f i r s t quarter of 1981 (table 2
The index of nonfarm business productivity stood at 100.3 (1977=100) compared wi
an all-time peak of 100.8 f i r s t attained during the second quarter of 1978, and
regained 2 quarters l a t e r .
Output increased less in the nonfarm business sector than in the more comprehens
business sector discussed above, partly reflecting the omission of farm output f
this sector. Nonfarm business output increased 0,7 percent, and hours of a l l
persons f e l l 2.8 percent (seasonally adjusted annual rates). Employment and ave
weekly hours both declined.




-3Hourly compensation increased 6,6 percent in the nonfarm business sector during
the third quarter. Hourly compensation in real terms declined 0.9 percent,
after allowing for the rise in the CPI-U. During the second quarter, hourly
compensation rose 6.1 percent, and real hourly compensation increased 1.4 percent. Unit labor cost rose 2.9 percent, compared with a 5.2 percent increase
during the second quarter. This was the smallest increase in this measure since
the 1.1 percent gain during the first quarter of 1977.
The implicit price deflator rose 5.5 percent, compared with a 4.0 percent increase one quarter earlier (seasonally adjusted annual rates).
Manufacturing
In manufacturing, productivity rose 7.1 percent as output fell 1.9 percent and
hours dropped 8.5 percent. Both output and hours have declined for the past 5
quarters (table 3). The gain in productivty was the largest since the 14.0 percent jump in the fourth quarter of 1980, when output rose 22.2 percent and hours
advanced 7.2 percent. Employment fell 7.7 percent and average weekly hours
declined 0.8 percent during the third quarter of 1982. Hourly compensation increased 6.5 percent —the smallest gain since the 4.3 percent increase during
the second quarter of 1978— while real hourly compensation decreased 1.1 percent. Unit labor cost fell at a 0.6 percent annual rate, compared with a 6.9
percent increase during the second quarter. This was the first decline in these
costs since the 3.9 percent drop in the fourth quarter of 1980. The drop in
total manufacturing output was confined to the durable goods sector, where
output fell at a 5.5 percent annual rate. On the other hand, nondurable goods
output rose 3.3 percent, the first rise in output in this sector since the 1.4
percent rise in the third quarter of 1981 (tables 4, 5 ) .
Revised measures
Revised second-quarter productivity and cost measures were also reported today
for the nonfinancial corporate sector (table 6 ) . Productivity increased at a
2.9 percent annual rate in the second quarter; output slipped 0.4 percent and
hours of all employees declined 3.2 percent (annual rates). Hourly compensation
rose 6.4 percent, and unit labor cost increased 3.4 percent. A comparison of
these revised measures with preliminary values published August 26 is presented
in table B.
Table B.
Nonfinancial corporations: Preliminary and revised second-quarter productivity
and cost measures, quarterly change at seasonally adjusted annual rate.

Percent
Pleasure
Productivity

Output
Hours
Hourly compensation
Real hourly compensation
Unit labor cost
Unit profits
Implicit price deflator



Preliminary
2.3
-1.0
-3.2
6.4
1.7
4.0
-16.0
4.4

Revised
2.9
-0.4
-3.2
6.4
1.7
3.4
-16.7

-4Business sector output is equal to gross national product less the rest-of-t
world sector, general government, output of paid employees of private households and nonprofit institutions, rental value of owner-occupied dwellings,
the statistical discrepancy in computing the national income accounts.
Business output has accounted for about 77 percent of gross national product
recent years. Corresponding exclusions are also made in employment.
Although the productivity measures relate output to the hours of all persons
engaged in each sector, they do not measure the specific contributions of
labor, capital, or any other single factor of production. Rather, they refl
the joint effect of many influences, including new technology, capital inves
ment, the level of output, capacity utilization, energy use, and managerial
skills, as well as the skills and efforts of the work force.




TABLE 1. PRIVATE BUSINESS SECTOR* ALL PERSONS: PRODLCTIVITY,
HOURLY COMPENSATION, UNIT LABOR COST, AND PRICES/ SEASONALLY ADJUSTED

YEAR AND
CUARTE*

CUTPUT PER
HOUR
OFF ALL PERSXNS

OUTPUT

HCURS
OF ALL
PERSONS

CCPPENSATICN P€«
HCURCI)

REAL
CCFPENSATICN PER
HCURC2)

UNIT
LA8CR
COST

UNIT NONLABOR PAYRENTS ( 3 )

iWPLICIT
PniC€
DEFLATCR

INDEXES 1977-100
1981

I
II
III
IV

100.7
100.7
101.0
100.2

1C9.1
1C9.1
1C9.6
1C7.8

108.3
108.3
108.5
107.5

14C.0
142.5
145.6
148.2

96.2
96.4
9 5.. 7
95.6

139.0
141.5
144.2
147.9*

131.8
133.4
137.4
138.3

136.5
13B . 8
141.9
144.6

ANNUAL

100.7

1C8.9

108.2

144.1

96.C

145.1

135.2

140.4

100.0
190.3
101.3F

1C6.3
1C6.4
1C6.8F

106.3
1:06.1
105.4P

15C.9
153.4
155.7P

96. 5
97.1
9 6 . BP

15C.9
152.9R
153.7P

136.4
137.OR
14C.8P

146.G
147.5R
149.3F

1982

I
III

PERCENT CHANGE FRO I* PREVIOUS QUARTER fil ANNUAL
1981

1932

I
Tl
1II
IV

5.6
0.0
1.1
-2.9

7.9
-C.1
1.9
-6.4

ANNUAL

1.8

2.5

1
11
III

-1.0
1 . 4R
4.OF

-5.5
1 . 4P

•£RCE*T
1981

25.0
4.9
12.5
2.9

11.6
6.6
9.3
8.C

0.7

9.6

-0.7

7.7

13.3

9.5

7.3
6.9
6.2P

3.9
2.2
-1.3P

S.4
5.5R
2.1 ?

-5.4
T.7R
11.5P

3.8
4.3R
5.CP

-4.5
-0.8
-2.5P

CHANGE fRCf ^CWrttPaNOTOT QU*FTfcR 0^ F>EVICUS YEAR(6)

c!7

8.9
6.9
7.1
7.9

13.7
14.8
13.9
11.0

10*4
9.4
9.2
8.9

1.8

2.5

0.7

5.6

-C.7

7.7

13.3

9.5

-0.7
-0.4
0.3F

-2.6
-2.4R
-2.5P

-1.9
-2.1
-2.9P

ANNUAL

SEE FOOTNOTES FOLLOWING TABLE 6 .
R--REVISSC
P = f*REL 1 * 1 NARY




5.7
7.5
7.8
1C.6

-0.7
-0.1
-1.3
-0.6

1.1
4.1

I

0.2
0.5
-2.6
-0.4

-1JC...5
9.7
9.4
8.9

1.4
2.3
2.2
0.9

II
III

-3.6

11.7
7.5
9.0
7.4

2.1
-0.1

-0.4
1.6
1.9
-0.2

I
II
III
IV

1982

RA7E(5)

a..3
7.6
6.9P

8.6
8.1
6.6P

3.5
2.7R
2.5F

6.9
6.3R
5.2F

OCTOBER 2 8 , 1982
SCLRCE: BUREAU OF LABCR STATISTICS

T A 3 L E 2 . NCNFARJ* B U S I N E S S S E C T O R /
HOURLY COMPENSATION/ UNIT LABOR COST/
CLTPUT
HOUR
OF A L L P€ R S C N S

YEAR A N D
CUARTE*

OUTPUT

1932

SEE

1977=100

103.3
109.C
109.1
108.1

139.5
142.0
145.1
147.7

96.C
96.G
95.4
95.3

139.0
141.9
145.1
149.0

131,
132.
136,
138,

136.5
138.9
142.3
145.5

ANNUAL

99.9

1C8.6

103.7

143.6

95.7

143.S

134.8

140,8

1C6.C
1C6.1R
1C6.3P

106.8
106.7
106.GP

15C.4
152.7R
155.1°

96.3
96.6
96.4P

151. 6
153. 5R
154.6.P

136, 7
137, 2R
14C« 9P

146.6
148.1R
150.1P

99.2
99.43
100.3P

T

CHANGE

FRCI*

PREVIOUS

CLARTER

AT ANNUAL

R A 7 E ( 5 )

I
II
III
IV

4.9
-1.3
-0.3
-3.5

7.2
•0.8
C.3
-7.1

2.2
0.5
0.6
-3.7

11.8
7.1
9.0
7.3

0.4
0.1
2.6
0.5

6.6
S.6
9.3
11.2

24.9
4.0
12.1
5.1

12.1
7.1
10.2
9.2

ANNUAL

1 .4

2.2

0.7

9.7

0.7

8.1

13.1

9.7

0.6

•4.2
C.6P

-4.7
-0.1
-2.8P

7.7
6.1R
6. 6P

4.3
1.4
C.9P

7.1
5.2R
2.9P

-4.6
1.3R
11.3P

3.3
4.CR
5.5P

I
II
III

3.6-P

I
II
III
IV

1.7

2.5
1.6

-C.1

ANNUAL
1932

IMPLICIT
PRICE
DEFLATOR

1C9.2
1C9.C
1C9.1
107.1

P E R C E N T

1931

UNIT NONLABOR PAYKENTSC3)

100.4
100.0
100.0
99.1

PERCENT

1932

UNIT
LA5CR
COST

I
II
III
IV

II
III

1 9 8 1

REAL
CCPPENSATICN PER
HCURC2)

COMPENSATION PER
HCURC1)

HOURS
OF ALL
PERSONS

INDEXES
1931

A L L P E R S O N S : P R O D L C T I V I T Y/
AND PRICES/ SEASONALLY ADJLSTED

1.4

I
II
III
FOOTNOTES

-1. 1
-0. 6 K
0. 3?
FOLLOWING




TABLE

CHANGE

FRCP

-0.4
1 .6

C O R R E S P O N D I N G

1.2
4.2
3.6
-0.2

2.C

1C.6
9.3
9.4

-0.1

2.2

Q U A F T E R

C FF P E V I C U S

£.3

-0. 6
0. G
-1. 2
-0. 6

0.7

9.7

-0.7

-3.C

-1.9

-2.6*

-2.C

7.8
7• 5

-2.5P

- 2. 9 P

6m 9

0. 3
0.6
1. 1P

Y E A R C 6 )

1C.4

7.7
8.9

14.1
13.8
13.6
11.2

8.1

13.1

9.7

8.8

7.r

9 .0
S -2R
6 .6P

4.0
3.3R
3.1P

6.
OCTOBER

2 8 /1 9 5 2

9.2
9.6
9.6

7. 4
6. 6R
5. 5?

TABLE 3. MANUFACTURING S6CTCR: PRODUCTIVITY, HOURLY
COMPENSATION, UNIT LABOR CCST, SEASCNALLY ADJUSTED
YEAR AND
CUARTER

CLTPUT PEP
HOUR
OF ALL PERSONS

OLTPUT
(7)

HOURS
OF ALL
PERSONS
INDEXES

1981

1982

I
II
III
IV
ANNUAL
I
II
I LI

1C6.7
1C7.5
1C7.4
1C2.0

101.5
102.4
102.3
99.2

104.5

1C5.9

101.3

58.2
57.OR
96.5P

REAL
COMPENSATION PER
HCURC2)

96.2
94.8
92.7P

142.6
144.9
147.3
*150.7

98.0
97.9
96.8
97.2

135.5
138.0
14C.3
146.6

146.4

97.5

14C.0

154.7
157.6
160.1P

99.0
99.7
99.5P

151.5
154.OR
153.8P

PERCENT CHANGE FROM PREVIOUS GLARTER AT ANNUAL
1981

1982

I
II
III
IV

-8.2

ANNUAL
I
II
III

UNIT
LA8CR
COST

1577=1C0

105.2
105.0
105.0
102.3

102.1
102.3R
104.1P

CCfPENSATICN PER
HCURC1)

RATE(5)

0.5
3.6
-0.3
-11.4

12.7
6.6
6.8
9.6

1.2
-0.4
-4,.6
1.6

6.0
7.3
6.8
15.4

2.8

6.9
2.8
-0.4
-18.7
2.3

-0.5

1C.2

-C.2

7.2

-2.4
0.8R
7.1P

-13.8
-5.1R
-1.9P

-11.7
-5.9R
-8.5P

11.1
7.8
6.5P

7.6
3.1
-1.1P

13.9
6.9R
-0.6P

6.3

PERCENT CHANGE FRO? CORRESPONDING QUARTER OF FREVIOUS YEAR(6)
1931

I
II
III
IV
ANNUAL

1982

I
II
III

2.6
4.5
4.7
-0.8

-1.C
5.8
7.5
-2.9

-3.5
1.2
2.7
-2.1

12.2
1C.7
8.9
8.9

0.3
0.9
1.7
0.6

9.3
5.9
4.0
9.8

2.8

2.3

-0.5

10.2

0.2

7.2

-2.9
-2.5R
-0.8P

SEE FOOTNOTES FOLLOWING TABLE 6.
R=*EVISED
P=PRELIMINARY




-8.C
-9.8R
-10.1P

-5.2
-7.4
-9.4P

8.5
8.8
8.7P

1.0
1.8
2.8P

11.7
11.6R
9.6P

OCTOBER 23, 1982
SOURCE: BUREAU CF LABOR STATISTICS

TABLE 4. DURABLE MANUFACTURING SECTOR: PRODUCTIVITY, HOURLY
COMPENSATION, UNIT LA6OR COST, SEASONALLY ADJLSTEDC11)
YEAR AND
OUART6R

OUTPUT PER
HOUR
OF ALL PERSONS

OLTPUT
C7)

HOURS
OF ALL
PERSONS

CC*PENSATICN PER
HCUR<1)

REAL
CCPPENSATICN PER
HCURC2)

UNIT
LABOR
COST

INDEXES 1977=1CO
1931

I
II
III

104.2
104.0
103.7
101.5

1C7.0
1C8.2
1C7.S
1C1.6

102.7
104.C
103.9
100.C

142.7
144.7
147.2
151.0

98.2
97.9
96.7
97.4

137.0
139.2
142.0
148.7

103.4

1C6.1

102.6

146.5

97.6

141.6

154.8
157.7
16C.7?

99.1
99.8
99. 9P

154.3
156.9R
157.4P

IV
ANNUAL
1982

I
II
III

96.8
95.2R
93.9P

100.3
100.5R
102.1P

96.5
94.7R
92.CP

PERCENT CHANGE FROP PREVIOUS GLARTER AT ANNUAL
1981

1982

I
II
III
IV

8.2
-0.7
-1.3
-8.C

ANNUAL

3.2

I
II
III

8.C
4.5
-1.6
-21.1
2.5

-4.9
0.9R
6.4F

-17.5
-6.4R
-5.5P

RATEC5)

-0.2
5.3
-0.3
-14.2

12.8
5.7
6.9
10.9

1.3
-1.2
-4.5
2.9

4.3
6.5
8*3
2C.5

-0.6

10.5

C.1

7.1

1C.3
7.7
8. OP

6.8
2.9
0.4P

15.9
6.-7R
1.5P

-13.2
-7.2R
-11.2P

PERCENT CHANGE FRQW CORRESPONDING QUARTER OF FREVICUS YEAR(6)
1981

I
II
III
IV
ANNUAL

1982

I
II
III

3.0
4.8
5.4
-0.6

-1.7
6.7
9.1
-3.2

-4.6
1.8
3.5
-2.6

12.7
11.0
9.0
9.1

1.3
1.1
1.6
0.4

9.5
5.9
3.4
9.7

3.2

2.5

-0.6

1C.5

C.1

7.1

-6.C
-8.9
-11.5P

8.4
8.9
9.2

C.9
1.9

12.7
12.7R
10.-9P

-3.8
-3.4R
-1.5P

SEE FOOTNOTES FOLLOWING TABLE 6,




-9.5
-12.C
-12.9P

TABLE 5. NONDURABLE MANUFACTURING SECTOR: PRODUCTIVITY, HCURLY
COMPENSATION/ UNIT LABOR COST, SEASONALLY ADJUSTED(12>
YEAR AND
CUARTE9

CLTPUT £>ER
HOUR
OF ALL PERSONS

OUTPUT
(7)

HOURS
OF ALL
PERSONS

CCPPENSATICN PER
HCURC1)

REAL
CCPPENSATICN PER
*-CUR<2>

UNIT
LABCR
COST

INDEXES 1977=1CQ
1981

1982

I
II
III
IV

106.7
106.5
107.0
104.6

1C6.4
106.5
1C6.9
1C2.6

99.7
99.9
99.8
98.1

141.8
144.4
146.7
149.6

97.5
97.7
96.5
96.5

132.9
135.*137.1
143.1

ANNUAL

106.2

1C5.6

99.4

145.6

97.0

137.1

104.9
105.1R
107.1P

1C0.4
99.6R
1CC.4P

95.7
94.8
93.7P

154.3
157.5R
159.4P

98.8
99.7
99.OP

147.2
15C.0R
148.8P

I
II
III

PERCENT CHANGE FROM PREVIOUS QUARTER AT ANNUAL RATEC5)
1981

1982

I
II
III
IV

3.5
-0.7
1.8
-8.8

5.2
0.3
1.4
-15.1

1.6
1.0
-0.4
-6.9

12.8
7.6
6.5
8.2

1.2
C.6
-4.8
0.3

9.0
8.3
4.6
18.5

ANNUAL

2.2

1.9

-0.3

9.6

-0.7

7.3

1.1
0.7R
7.9P

-8.3
-3.2R
3.3*

I
II
III

-9.3
-3.9R
-4.3P

13.2
8.5R
4.7P

9.6
3.8
-2.7P

12.0
7.8R
^3.OP

PERCENT CHANGE FRCP CORRESPONDING QUARTER OF PREVIOUS Y E A M 6 )
1981

1982

I
II
III
IV

2.0
4.2
3.7
-1.1

0.1
4.6
5.3
-2.4

-1.8
0.4
1.5
-1.2

11.5
10.0
8.4
8.7

C.2
C.2
-2.2
-0.7

9.4
5,6
4.5
1C*0

ANNUAL

2.2

1.9

-0.3

9.6

-0.7

7.3

-1.7
-1.4R
0.1P

-5.6
-6.5R
-6.1P

-4.C
-5.2
-6.1P

8.8
9.1
8.6P

I
II
III

SEE FOOTNOTES FOLLOWING TABLE 6.
RsREVISED
P=PR£LIHINARY




1.3
2.1
2.7P

1C^8
10.6R
8.5R
OCTOBER 2 8 , 1982
SOURCE: BUREAU OF LASCR STATISTICS

TABLE 6. NCNFINANCIAL CORPORATIONS: PRODUCTIVITY/ HCURLY COMPENSATION
UNIT LASCR COST/ UNIT PROFITS/ AND PRICES/ SEASONALLY ADJUSTED
YEAR
AND
QUARTER

OUTPUT
PZZ ALLEMPLOYEE
HOUR

EMPLOYEE HOURLY
REAL
HOURS COMFENSA- HOURLY
TICN
COFPEN(1)
SATION<2)

CUTFLT

UNIT
LA80R
COST

UNIT
NONLASOF
CCST<£>

TOTAL
UNIT
COST
(9)

UNIT
IMPLICIT
PRO- PRICE
FITS DEFLATOR
(1C>

INDEXES 1977=1C0
1981

I
II
III
IV
ANNUAL

1932

I
II

1C2.8
1C2.7
102.8
102.2

111
111
111
109

107.9
108.1
108.5
107.C

14C.4
142.7
145.7
145.6

96.5
96.5
95.8
95.9

136.5
138.9
141.7
145.4

143.4
149.6
153.1
159.6

138,
141,
144,
149,

104.7
98.8
105.2

97.6

134.5
136.8
140.2
143.2

1C2. 7

110.7

107.9

144.4

96.2

14C.6

151.A

143.4

101.6

138.6

102.3
103.1

107.9
107.8R

105.4
104.6

151.7
154.1

97.1
97.5

148.3
149.5R

161.£
166.CR

151.8
153.8R

PERCENT CHANGE FRCP PREVICLS GLARTER AT ANNUAL
1981

1932

I
II
III
IV

4.7
-0.4
C.3
-2.3

7.4
0.6
1.5
-7.5

ANNUAL

1 .8

2.4

C.5
2.9R

•5.2

I
II

-0.4R

86.1
82.3R

144.3
145.6R

RATEC5)

2.6
C.9
1.2
-5.3
C.6

12.4
6.9
8.5
£.3

0.9
-0.1
-3.0
0.5

7.4
7.3
8.2
1C.9

8.C
18.5
9.£
17.6

7.5
10.2
8.6
12.£

79.5
-20.8
28.4
-25.9

12.3
7.1
1C.2
8.9

9.7

-0.6

7.8

14.2

9.5

15.6

1C.0

-5.7

S.6
6.4

5.2
1.7

8.1
3.4R

5.7
10.7R

7.4
5.4R

-39.4
-16.7R

-3.2

3.0
3.8R

PERCENT CHANGE FROM CORRESPONDING QUARTER OF PREVIOUS YEARC6)
1981

2.1

I
II
III
IV

2.9
1.7
0.6

1.G
4.4
4.1
0.2

-1.0
1.4
2.4
-C.2

1C.7
9.8
9.2
9.0

-0.5
0.1
-1.4
-0.5

8.5
6.7
7.5
8.4

16.9
14.2
12.9
13.4

10.6
8.7
8.9
9.8

14.9
20.7
19.7
7.9

11.0
9.6
9.7
9.6

JAL

1.3

2.4

0.6

9.7

-0.6

7.8

14.2

9.5

15.6

1C.0

-0.5
0.3R

-2.7
-3.CR

-2.3
-3.3

8.1
8.0

0.6
1.0

8.6
7.6R

12.£
10.9R

9.7
8.5R

I

1982
II

SEE FOOTNOTES FOLLOWING TABLE 6.
RaRCWTSFn




-17.8
-16.7R

7.3
6.4R

-11Footnotes, Tables 1-6
SOURCE: Output data from Bureau of Economic Analysis, U.S. Dapartment of
Commerce, and the Federal Reserve Board. Compensation and hours data from the
Bureau of Labor S t a t i s t i c s , U.S. Department of Labor, and the Bureau of
Economic Analysis.
RELIABILITY: Based on data covering the period from the f i r s t quarter of 1976
of the f i r s t quarter of 1981, the probability is 0.95 that the interval between
-2.0 and 2.4 index points contains the revision of the index of productivity in
the business sector from the f i r s t to the third quarterly publication of the
estimate.
(1)

(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)

(12)

Wages and salaries of the employees plus employers1 contributions for
social insurance and private benefit plans. Except for nonfinancial corporations, where there are no self-employed, data also include an e s t i mate of wages, salaries, and supplemental payments for the self-employed..
Compensation per hour adjusted for changes in the Consumer Price Index
for All Urban Consumers.
Nonlabor payments include p r o f i t s , depreciation, interest, rental income,
and indirect taxes.
Current dollar gross product divided by constant dollar gross product.
Percent change compounded at annual rate from the original data rather
than index numbers.
Current quarter divided by comparable quarter a year ago.
Quarterly measures adjusted to annual estimates of output (gross product originating) from the Bureau of Economic Analysis, U.S. Department
of Commerce.
Unit nonlabor cost includes depreciation, interest, and indirect taxes.
Total unit cost is the sum of labor and nonlabor costs.
Unit profits include corporate p r o f i t and inventory valuation adjustment.
The durable sector includes the following 2 - d i g i t SIC industries:
Primary metal; fabricated metal products; nonelectrical machinery;
electrical machinery; transportation equipment; instruments; lumber and
lumber products; furniture and fixtures; stone, clay, and glass products;
and miscellaneous manufactures.
The nondurable sector includes the following 2 - d i g i t SIC industries:
Textile mill products; apparel products; leather and leather products;
printing and publishing; chemicals and chemical products; petroleum
products; rubber and plastic products; foods; and tobacco products.

The productivity and associated cost measures in this press release describe
the relationship between output in real terms and the labor time involved in
i t s production. They show the changes from period to period in the amount of
goods and services produced per hour. Although these measures relate output to
hours of a l l persons engaged in a sector, they do not measure the specific
contributions of labor, c a p i t a l , or any other factor of production. Rather,
they reflect the j o i n t effects of many influences, including changes in
technology; capital investment; level of output; u t i l i z a t i o n of capacity,
energy and materials; the organization of production; managerial s k i l l ; and
characteristics and effort of the work force.

"ft U.S. GOVERNMENT PRINTING OFFICE: 1982-361-816:307