Full text of Productivity and Costs : Third Quarter 1984

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

U .S . Department of Labor

Bureau of Labor ; Statistics

VVasfaittc { E .C . 20212
f

.s Stt.

W .4F SlY

1 4 19 4

Historical, technical USDL 84-451
information : (202) 523-9261 or Release : 10 :00 AM EST
Current data : (202) 523-1221 or 1208 Monday, October 29, 1984
Media contact : (202) 523-1913
PF40DUCrIVM AND COSTS
Third Quarter 1984

Productivity, as measured by output per hour of all persons, increased 1 .7
percent during the third quarter in the business sector and was unchanged in
the nonfarm business sector according to preliminary measures announced today
by the Bureau of Labor Statistics of the U .S . Department of Labor . In the
business sector, the broadest category covered, total output increased 2 .7
percent and hours of all persons engaged in the sector increased 1 .0 percent .
In the nonfarm business sector output and hours both rose 1 .6 percent .
Preliminary measures show a sizable increase in manufacturing productivity .
The annual rates of productivity change in the third quarter in major
sectors were :
1 .7
0 .0
8 .0
7 .7
8 .4

percent
percent
percent
percent
percent

in
in
in
in
in

the business sector,
the nonfarm business sector,
manufacturing,
durable goods manufacturing and
nondurables goods manufacturing .

The third quarter measures are summarized in table A and appear in detail
in tables 1 through 6 .
Business sector
Productivity advanced 1 .7 percent in the third quarter in the business
sector, as output increased 2 .7 percent and hours rose 1 .0 percent (seasonally
adjusted annual rates) . This was the ninth quarter of productivity growth, the
longest period of such gains since 1966-68, when 10 quarters of growth
occurred . The present increase in productivity was smaller than the gains
recorded in the first 2 quarters (4 .0 percent and 4 .9 percent, respectively)
and reflected slowdowns in the rates of growth of both output and hours (table
1) . Employment grew 2 .7 percent in the third quarter, compared with a 5 .0
percent increase during the second quarter . Average weekly hours declined for
the first time since the fourth quarter -of 1982, ending the longest period of
growth in this series .
Hourly nation, which includes wages and salaries, supplements, and
_ all employer expenditures for employee benefit plans, increased 4 .5 percent in
the third quarter, compared with a 1 .9 percent gain during the second quarter .
_ Real hourly compensation, which is adjusted for changes in the Consumer Price
a Index for All Urban Consumers (CPI-U), increased 0 .9 percent in the third
Ce e ntennial quarter, compared with a 1 .8 percent decline during the second quarter .
of Labor
Statistics



Table A . Productivity and costs : Preliminary third quarter 1984 measures
(Seasonally adjusted at an annual rate)

Sector

Productivity

Hourly

Output

Hours

compensation

Real

hourly

Unit

ccmpensation

labor
costs

Percent change fran preceding quarter
Business

Nonfarm business
Manufacturing
Durable

Nondurable

1 .7

2 .7

1 .0

4 .5

0 .9

2 .7

8 .0
7 .7

7 .4
9 .4

-0 .5
1 .6

3 .7
2 .7

0 .1
-0 .8

-4 .0
-4 .6

0 .5
0 .2
-0 .3
-0 .7
0 .0

1 .6
2 .0
0 .2
-0 .7
1 .2

0 .0
8 .4

1 .6
4 .4

1 .6

-3 .7

3 .7

4 .8

0 .1
1 .2

3 .7

-3 .3

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

3 .0
2 .3
3 .7
4 .1
2 .9

8 .2
7 .8
9 .6
12 .7
5 .0

5 .1
5 .4
5 .7
8 .2
2 .0

4 .7
4 .4
3 .9
3 .4
4 .2

Unit labor costs (compensation per unit of output), which reflect changes
in productivity and hourly compensation, increased at a 2 .7 percent annual rate
during the third quarter, compared with a 2 .9 percent decline during the second
quarter .
The implicit price deflator for the business sector-which reflects
changes in unit labor and nonlabor payments--increased 3 .1 percent in the third
quarter, red with a 2 .9 percent gain during the second quarter .

Nonfarm business
Productivity was unchanged fran second-quarter levels in the nonfarm
business sector as output and hours both posted gains of 1 .6 percent . This was
the first period in which productivity failed to grow since the second quarter
of 1982 . As in the more ccmprehensive business sector, the slowdown in nonfarm
productivity during the third quarter reflects a slowdown in output and hours
growth (table 2) . Employment growth was somewhat stronger and the length of
the average workweek declined more slowly than in the overall business sector
which also includes the farm sector .




Hourly compensation in nonfarm businesses increased 3 .7 percent in the
third quarter, the same increase as occurred in the second quarter . Unit labor
costs also rose 3 .7 percent in the third quarter since there was no offsetting
increase in productivity . During the second quarter, unit labor costs declined
1 .7 percent . The third quarter increase in unit labor costs was the largest
since 1982 (when a 4 .0 percent increase was recorded in the fourth quarter) .
Real hourly compensation increased 0 .1 percent in the third quarter of 1984,
compared with no change during the second quarter .
Manufacturin

In manufacturing, output per hour of all persons increased at an 8 .0
percent annual rate during the third quarter, as output rose 7 .4 percent and
hours of all persons declined 0 .5 percent (table 3) . Output slowed from the
more rapid increases of the past 5 quarters, and the decline in hours was the
first drop since the fourth quarter of 1982 (when an 8 .6 percent decline
occurred) .
Productivity movements in manufacturing and the more canprehensive nonfarm
business sector do not always agree ; since 1974, they have moved in opposite
directions nearly one-third of the time . This large productivity increase in
manufacturing compared with no change for nonfarm business this quarter
reflects substantially different movements in both hours and output between the
two sectors (table A) . The output measures for the sectors are based on two
different sources . Manufacturing output is 'based on the monthly Index of
Industrial Production prepared by the Board of Governors of the Federal Reserve
System . Nonfarm output as a whole is based on the National Income and Product
Accounts prepared by the Bureau of Economic Analysis of the U .S . Department of
Commerce . The hours used to compute nonfarm and manufacturing productivity are
based on the same sources--the BLS monthly Survey of Establishments which is
part of the Current Employment Survey and, for the self-employed, the BLS
monthly household survey. While the quarterly increase in hours was the same
in nonfarm business as in durable manufacturing, a decline in hours in
nondurables was sufficient to cause a decline for the quarter for manufacturing
as a whole .
Hourly compensation grew at a 3 .7 percent annual rate, compared with a 2 .9
percent rise during the second quarter . Unit labor costs fell 4 .0 percent
during the third quarter and 1 .1 percent in the second . Since the third
quarter of 1982, manufacturing unit labor costs have declined in 6 of the 9
quarters . )teal hourly compensation increased 0 .1 percent during the third
quarter of 1984 compared with a 0 .8 percent decline during the second quarter .
Productivity gains were weaker among durable goods manufacturers than
nondurables . However, output growth in the third quarter was virtually the
same as in the second quarter in durables, while output growth slowed in
nondurables in the third quarter (tables 4,5) . Divergent trends were
apparent in hours ; in durables, payroll hours of all persons engaged
increased 1 .6 percent, while among nondurables, hours declined 3 .7 percent
(seasonally adjusted annual rates) . Employment continued to grow in
durables, but declined in nondurables .
Nonfinancial corporations : revised second quarter measures
Productivity among nonfinancial corporations advanced at a 2 .8 percent
annual rate during the second quarter of 1984, according to the most recent
measures announced today . This sector includes all corporations doing
business in the United States with the exception of banks, finance and
insurance agencies, and stock and commodity brokers . Output rose 9 .8 percent
and all-employee hours increased 6 .8 percent (table 6) . Hourly compensation
increased 2 .4 percent, but when adjusted for the increase in the CPI-U showed
a 1 .3 percent decline . Unit profit rose 23 .8 percent (seasonally adjusted
annual rates) . These values are based on the most complete measures of
output and labor input available ; table B compares them with the results
reported on August 23, based on preliminary information .

Table B . Preliminary and revised productivity and related measures for nonfinancial
corporations, second quarter 1984
Percent change from previous quarter at annual rate
(Seasonally adjusted)

Item
Preliminary
Revised




Real
Hourly hourly Unit Unit Unit
Produc- Output Hours compen- compen- labor nonlabor profits

tivity sation sation costs costs
1 .7
2 .8

8 .5
9 .8

6 .7
6 .8

2 .3
2 .4

-1 .3 0 .6
-1 .3 -0 .4

2 .1
2 .0

13 .6
23 .8

Business sector output is equal to gross national product, less the
rest-of-the-world sector, general government, output of paid employees of
private households and nonprofit institutions, rental value of owner-occupied
dwellings, and the statistical discrepncy in computing the national income
accounts . Corresponding exclusions are also made in labor inputs . Business
output has accounted for about 77 percent of gross national product in recent
years .
Total manufacturing measures are computed by summing series prepared for the
durable and nondurable goods sectors .
The durable sector includes the following 2-digit SIC industries : Primary
metals ; fabricated metal products ; nonelectrical machinery ; electrical
machinery ; transportation equipment ; instruments ; lumber and lumber products ;
furniture and fixtures ; stone, clay, and glass products, and miscellaneous
manufactures . The nondurable sector includes the following 2-digit SIC
industries : Textile mill products, apparel products, leather and leather
products, printing and publishing, chemical and chemical products, ~petroleum
products, rubber and plastic products, foods, and tobacco products .
Manufacturing output has accounted for about 24 percent of gross national
product in recent years .
Nonfinancial corporate output is equal to gross national product, less the
rest-of-the-world sector, general government, unincorporated business, output
of paid employees of private households and nonprofit institutions, rental
value of owner-occupied dwellings, the output of corporations engaged in
banking, finance, stock and commodity trading, and credit and insurance
agencies, and the statistical discrepancy in computing the 'national income
accounts . Nonf inancial corporate output has accounted' for about 59 percent of
gross national product in recent years .
The productivity and associated cost measures in this news release describe the
relationship between output in real terms and the labor time involved in its
production . They show the changes fran period to period` in the amount of goods
and services produced per hour . Although these measures relate output to hours
of all persons engaged in a sector, they do not measure the specific
contributions of labor, capital, or any other factor of production . Rather,
they reflect the joint effects of many influences, including changes in
technology ; capital investment ; level of output : utilization of capacity,
energy, and materials ; the organization of production ; managerial skill ; and
the characteristics and effort of the work force .




Table 1 . Business sector : Productivity, hourly compensation, unit labor cost, and prices, seasonally adjusted
Year and
quarter

Output per
hour
of all persons

output

Hours
of all
persons

Real
c ensation per
hour(2)

Unit
labor
cost

Unit nonlabor payments(3)

160 .2
161 .0
161 .8
164 .2

99 .0
98 .5
98 .0
98 .4

156 .8
155 .4
155 .1
156 .8

139 .8
144 .6
147 .9
149 .1

151 .0
151 .7
152 .7
154 .2

Compensation per
hour(l)

Implicit
price
deflator(4)

Indexes 1977=100
I
II
III
IV

102 .2
103 .6
104 .3
104 .7

106 .9
110 .1
112 .5
114 .7

104 .7
106 .2
107 .9
109 .5

ANNUAL

103 .7

111 .0

107 .1

161 .7

98 .4

156 .0

145 .5

152 .4

105 .7
107 .Or
107 .5p

117 .8
121 .Or
121 .8p

111 .4
113 .0
113 .3p

166 .7
167 .5
169 .3p

98 .6
98 .2
98 .4p

157 .7
156 .5r
157 .6p

151 .6
157 .2r
158 .7p

155 .6
156 .7
157 .9p

1983

1984

I
II
III

Percent change from previous quarter at annual rate(5)
I
II
III
IV

2 .1
5 .9
2 .8
1 .4

4 .4
12 .4
9 .3
7 .8

2 .2
6 .1
6 .4
6 .2

4 .4
2 .2
2 .0
6 .1

4 .1
-2 .1
-2 .1
1 .6

2 .2
-3 .5
-0 .8
4 .6

10 .2
14 .5
9 .5
3 .1

4 .6
1 .9
2 .5
4 .1

ANNUAL

2 .7

4 .4

1 .7

4 .3

1 .1

1 .6

6 .3

3 .0

11 .4
11 .2r
2 .7p

7 .2
6 .Or
1 .0p

6 .2
1 .9
4 .5p

1 .2
-1 .8r
0 .9p

2 .1
-2 .9r
2 .7p

7 .0
15 .4r
3 .9p

1983

1984

I
II
III

4 .0
4 .9r
1 .7p

3 .7
2 .9f"
3 .1p

Percent change from corresponding quarter of previous year(6)
I
II
III
IV

1 .2
3 .3
3 .4
3 .1

-0 .2
3 .4
6 .1
8 .4

-1 .4
0 .1
2 .6
5 .2

5 .8
4 .6
3 .3
3 .7

2 .1
1 .3
0 .7
0 .3

4 .5
1 .3
-0 .1
0 .6

t .3
5 .5
8 .9
9 .2

3 .5
2 .6
2 .7
3 .3

ANNUAL

2 .7

4 .4

1 .7

4 .3

1 .1

1 .6

6 .3

3 .0

3 .5
3 .3r
3 .Op

10 .2
9 .9r
8 .2p

6 .5
6 .4
5 .1p

4 .1
4 .0
4 .7p

-0 .4
-0 .3
0 .5p

0.6
0 .7r
1 .6p

8 .4
8 .7r
7 .3p

3 .0
3 .3
3 .5p

1983

1984

I
II
III

See footnotes following table 6 .
r=revised
p=preliminary




October 29, 1984
Source : Bureau of Labor Statistics

Table 2 . tam business sector : Productivity, hourly nsation, unit labor cost, and prices, seasonally adjusted
Year
quarter

Output per
hour
of all parsoms

output

Hours
o£ all
person$

nsation per
hour(1)

Real
tion per
hour(2)

Unit
labor
cost

Unit nonlabor paymarts(3)

Implicit
price
deflator(4)

Indexes 1977-100
1983

1984

I
II
III
IV

101 .6
103 .6
104 .1
104 .4

106 .7
110 .4
112 .7
115 .2

105 .1
106 .5
108 .2
110 .3

160 .1
161 .5
162 .4
164 .0

99 .0
98 .8
98 .3
98 .2

157 .6
155 .9
155 .9
157 .1

140 .6
146 .4
149 .4
151 .4

151 .9
152 .7
153 .8
155 .2

AL

103 .4

111 .2

107 .5

162 .0

98 .6

156 .6

147 .0

153 .4

I
II
III

105 .2
106 .6r
106 .6p

118 .0
121 .Or
121 .5p

112 .3
113,6
114 .Op

166 .5
168 .0
169 .5p

98 .5
98 .5
98 .5p

158 .3
157 .6r
159 .1p

152 .2
156 .8r
158 .1p

156 .3
157 .3r
158 .7p

r nt change from previous quarter at annual rate(5)
I
II
III
IV

4 .4
8 .1
2 .1
1 .0

6.0
14 .3
8,7
9 .1

1 .5
5 .7
6 .5
8 .0

5 .7
3 .5
2 .2
4 .1

5 .4
-0 .8
-1 .9
-0 .3

1,3
-4 .2
0 .1
3 .0

12 .7
17 .8
8 .4
5 .3

4 .6
2 .2
2 .7
3 .7

ANN M

3 .5

5 .0

1 .5

4 .9

1 .6

1 .4

7 .4

3 .2

2 .9
5 .5r
O .Op

10 .3
10,6r
1 .6p

7 .2
4 .8r
1 .6p

6 .1
3 .7
3,7p

1 .0
0,0
0 .1p

3 .1
-1 .7r
3 .7p

2 .3
12 .5r
3 .3p

2 .8
2 .8r
3 .6p

1983

1984

I
II
III

Percent c from corresponding quarter of previous year(6)
1983

1204

--

I
I1
I11
IV

1 .8
4 .3
3 .9
3,9

0 .3
4 .1
6 .3
9 .5

-1 .5
-0 .2
2 .3
5 .4

6 .0
5 .4
4 .1
3 .9

2 .4
2 .0
1 .5
0 .6

4 .1
1 .1
0 .2
0 .0

2 .7
6 .5
9 .2
10 .9

3 .7
2 .8
3 .0
3 .3

AL

3 .5

5 .0

1 .5

4 .9

1 .6

1 .4

7 .4

3 .2

6 .9
6,6
5 .4p

4 .0
4 .0
4 .4p

-0 .5
-0 .3
0 .2p

0 .4
1 .lr
2 .Op

8 .3
7,lr
5 .8p

2 .9
3 .Or
32p

1
II
III

3 .5
2,9r
3,3p

notes following table 6 .

r-v$lipi
. .

ry




10 .6
9,7r
7 .8p

October 29, 1984
Source : Bureau of Labor statistics

Table 3 . Manufacturing sector : Productivity hourly compensation, and unit labor cost,
seasonally adjusted
Year and Output
quarter
hour

of

all

Real
per Output Hours Compensa- compensa- Unit
(7)
of
all
tion
per
tion
per
labor

persons

persons

hour(l)

hour(2)

cost

Indexes 1977=100
1983

I
II
III
IV

109 .1
110 .8
113 .4
113 .1

98 .4
102 .4
107 .2
109 .6

90 .2
92 .4
94 .6
96 .9

162 .7
163 .0
163 .5
164 .6

100 .6
99 .7
99 .0
98 .6

149 .1
147 .0
144 .1
145 .5

ANNUAL

111 .6

104 .4

93 .5

163 .4

99 .4

146 .4

114 .2
115 .3r
117 .6p

113 .0
115 .4r
117 .5p

98 .9
100 .1
99 .9p

167 .1
168 .3
169 .9p

98 .9
98 .7
98 .7p

146 .4
146 .Or
144 .5p

1.984

I
II
III

Percent change from previous quarter at annual rate(5) 1983

I
II
III
IV

4 .8
6 .4
9 .7
-1 .0

7 .3
17 .1
20 .5
9 .1

2 .4
10 .0
9 .8
10 .2

4 .2
0 .6
1 .3
2 .9

3 .9
-3 .5
-2 .8
-1 .5

-0 .5
-5 .5
-7 .7
3 .9

ANNUAL

4 .3

5 .2

0 .9

3 .4

0 .2

-0 .8

12 .9
8 .9r
7 .4p

8 .8
4 .6r
-0 .5p

6 .2
2 .9
3 .7p

1 .1
-0 .8
0 .1p

p2 .3
-l .lr
-4 .Op

1984

I
II
III

3 .7
4 .Or
8 .Op
Percent change

from corresponding quarter of previous year(6)

I
II
III
IV

3 .4
4 .3
4 .3
4 .9

-2 .2
2 .4
7 .6
13 .4

-5 .4
-1 .8
3 .1
8 .1

5 .5
3 .6
2 .3
2,2

1 .8
0 .3
-0 .3
-1 .0

.2 .0
=0 .6
-1 .9
-2 .6

ANNUAL

4 .3

5 .2

0 .9

3 .4

0 .2

-0 .8

9 .7
8,3r
5 .7p

2 .7
3 .3
3,9p

1983

1984

I
II
III

4 .7
4 .lr
3 .7p

See footnotes following table 6,
ro-revised

pmpreliminary




14 .8
12 .7
9 .6p
------------ ---

-1 .7
-1 .0
-0 .3p

-1,9
-0,7r
0,2p

---- --^-T
--~-'--~~.-T_
October 29, 1984

Source : Bureau of Labor Statistics

Table 4 . Durable manufacturing sector : Productivity, hourly compensation, and unit labor cost,
seasonally adjusted(ll)
Year and
quarter

Output per
hour
of all persons

Output
(7)

Hours
of all
persons

Compensation per
hour(1)

Real
compensation per
hour(2)

Unit
labor
cost

Indexes 1977=100
1983

1984

1
II
III
IV

108 .5
110 .8
113 .5
113 .1

95 .6
100 .1
1051 .7
109 .0

88 .1
90 .4
93 .2
96 .4

162 .2
162 .2
162 .5
163 .4

100 .3
99 .2
98 .4
97 .8

149 .5
146 .5
143 .2
144 .4

ANNUAL

111 .5

102 .6

92 .0

162 .5

98 .9

145 .8

115 .1
116 .Or
118 .1p

113 .9
116 .5r
119 .1p

165 .8
167 .Or
168 .1p

98 .1
97 .9
97 .7p

144 .0
144 .0r
142 .3p

1
II
III

98 .9
100 .4
100 .8p

Percent change from previous quarter at annual rate(s)
1983

1
II
III

7 .2
8 .7
10 .2

10 .7
20 .5
24 .2

3 .3
10 .9
12 .8

3 .9
0 .1
0 .8

3 .6
-4 .1
-3 .2

-3 .1
-7 .9
-8 .5

ANNUAL

5 .6

5 .7

0 .1

3 .1

-0 .1

-2 .3

18 .9
9 .5r
9 .4p

10 .9
6 .2r
1 .6p

6 .1
2 .8
2 .7p

1 .1
-0 .8r
-0 .8p

-1 .0
-0 .2r
-4 .6p

IV

1984

1
II
III

-1 .2

7 .2
3 .lr
7 .7p
Percent change

1983

1984

13 .2

14 .6

2 .1

from corresponding quarter of previous

-2 .3

3 .3

year(6)

1
II
III
IV

4 .7
5 .7
5 .5
6 .1

-3 .8
18
.
8 .5
17 .0

-8 .1
-3 .7
2 .9
10 .3

5 .5
3 .4
1 .8
1 .7

1 .8
0 .1
-0 .8
-1 .6

0 .7
-2 .2
-3 .5
-4 .2

ANNUAL

5 .6

5 .7

0 .1

3 .1

-0 .1

-2 .3'

19 .2
16 .3r
12 .7p

12 .3
11 .1
8 .2p

2 .2
2 .9
3 .4p

-2 .2
-1 .3
-0 .7p

-3 .7
-1 .7r
-0 .7p

1
II
III

6 .1
4 .7r
4 .1p

See footnotes following table 6 .
r=revised
p=preliminary




T-

October 29, 1984
Source : Bureau of Labor Statistics

e

Table 5 . Nondurable manufacturing sector :
seasonally adjusted(12)
Year and
quarter

Output per
hour
of all persons

Productivity, hourly compensation ,

Output
(7)

Hours
of all
persons

Compensation per
hour(l)

and unit

Real
compensation per
hour(2)

labor cost,

Unit
labor
cost

Indexes 1977-100
I
II
III
IV

110 .0
110 .9
113 .3
113 .2

102 .6
105 .7
109 .5
110 .5

93 .3
95 .3
96 .6
97 .6

164 .5
165 .1
165 .7
167 .1

101 .7
101 .0
100 .3
100 .1

149 .6
148 .8
146 .2
147 .6

ANNUAL

111 .9

107 .1

95 .7

165 .6

100 .7

148 .0

I

112 .8

111,7

99 .0

169 .5

100 .3

150 .2

1983

1984

II
III

114 .3
116 .7p

113 .8r
115 .0p

99 .5r
98 .6p

170 .6
172 .6p

100 .0
100 .3p

149 .2r
147 .9p

Percent change from previous quarter at annual rate(s)
1
II
III
IV

1 .5
3 .4
9 .0
-0 .6

2 .8
12 .5
15 .3
3 .4

1 .3
8 .8
5 .8
4 .0

4 .5
1 .4
1 .4
3 .4

4 .1
-2 .8
-2 .6
-1 .0

2 .9
-1 .9
-7 .0
4 .0

ANNUAL

2 .4

4 .4

2 .0

4 .1

0 .9

1 .7

0 .8
-1 .0r
1 .2p

7 .2
-2 .6r
-3 .3p

1983

I
II
III

1984

-1 .3
5 .5r
8,4p

4 .4
8 .Or
4 .4p

5 .8
2 .4
-3 .7p

5 .8
2 .7
4 .8p

Percent change from corresponding quarter of previous year(6)
I
II
III
IV

1 .4
2 .2
2 .7
3 .3

0 .1
3 .1
6 .2
8 .4

-1 .4
0 .9
3 .5
4 .9

6 .2
4 .5
3 .2
2 .7

2 .5
1 .1
0 .6
-0 .6

ANNUAL

2 .4

4 .4

2 .0

4 .1

0 .9

2 .6
3 .lr
2 .9p

8 .8
7 .7r
S .Op

6 .1
4 .5
2 .Op

3 .0
3 .3
4 .2p

1983

1984

I
II
III

See footnotes following table 6 .
r=revised
p=preliminary




-1 .4
-0 .9
O .Op

4
2
0
•0

.7
.2
.6
.6

1 .7
0 .4
0 .2r
1 .2p

October 29, 1984
Source : Bureau of Labor Statistics

-12Footnotes, Tables 1-6
SOURCE : Output data from 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 : Based on data covering the period from the first quarter of 1976
to the second quarter of 1983, the probability is 0 .95 that the interval
between -1 .8 and 2 .1 index points contains the revision of the index of
productivity in the business sector from the first to the third quarterly
publication of the estimate .
(1) Current dollar gross product divided by constant dollar gross product .
(2) Quarterly changes : percent change carpounded at annual rate fran the
original data rather than index numbers . Annual changes : percent change
between annual average levels .
(3) Quarterly changes : current quarter divided by comparable quarter a year
ago . Annual changes : percent change between annual average levels .
(4) Wages and salaries of the employees plus employers' contributions for
social insurance and private benefit plans . Except for nonfinancial corporations, where there are no self-employed, data also include an estimate of wages, salaries, and supplemental payments for the self-employed .
(5) Compensation per hour adjusted for changes
for All Urban Consumers .

in the Consumer Price Index

(6) Nonlabor payments include profits, depreciation, interest, rental
income, and indirect taxes .
(7) Quarterly measures adjusted to annual estimates of output (gross product originating) from the Bureau of Economic Analysis, U,S . Department
of Commerce .
(8) The durable sector includes the following 2-digit 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 .
(9) The nondurable sector includes the following 2-digit 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 .
(10) Unit nonlabor cost includes depreciation, interest, and indirect taxes .
(11) Total unit cost is the sum of labor and nonlabor costs .
(12) Unit profits include corporate profit and inventory valuation adjustment .




Table 6 . Nonfinancial corporations : Productivity, hourly compensation, unit labor cost, unit profits,
and prices, seasonally adjusted
Year
and
quarter

Output
per allemployee
hour

Output

Employee Hourly
Real
hours
compensa- hourly
tion
compen(1)
sation(2)

Unit
labor
cost

Unit
nonlabor
cost(8)

Total
unit
cost
(9)

Unit
profits
(10)

Implicit
price
deflator
(4)

Indexes 1977=100
I
II
III
IV

104 .0
105 .8
107 .2
107 .2

107,5
111,4
114 .7
117 .0

103 .4
105 .2
106 .9
109,2

159,2
160 .6
161 .8
162 .6

98 .4
98 .2
98 .0
97 .4

153 .1
151 .7
150 .9
151,7

167 .0
165 .1
164 .4
163 .3

156 .7
155 .2
154 .4
154 .7

92 .5
111 .8
126 .6
135 .9

149 .4
150 .2
151 .2
152 .6

ANNUAL

106 .1

112 .6

106 .2

161 .0

97 .9

151 .8

164 .9

155 .2

117 .2

150 .9

108 .1
108 .9r

120 .2
123 .lr

111 .2
113 .lr

164 .8
165 .8

97 .5
97 .2

152 .5
152 .3r

162 .0
162 .8

155 .0
155 .Or

143 .2
151 .lr

153 .6
154 .6r

1983

1984

I
II

Percent change

from previous quarter at annu al rate(5)

I
II
III
IV

3 .2
7 .5
5 .3
-0 .2

4 .4
15 .1
12 .4
8 .4

1 .2
7 .1
6 .7
8 .6

3 .9
3 .5
3 .1
2 .0

3 .5
-0 .8
-1 .0
-2 .4

0,7
-3 .7
-2 .1
2 .1

-4 .1
-4 .5
-1 .7
-2 .6

-0 .7
-3 .9
-2 .0
0 .8

124 .6
112 .8
64 .8
32 .6

4 .7
2 .3
2 .8
3 .6

ANNUAL

3 .3

4 .5

1 .2

4 .2

0 .9

0 .8

0 .1

0 .6

38 .5

3 .1

7,7
6 .8r

5 .7
2 .4r

0 .7
-1 .3

2 .0
-0 .4r

-3 .2
2 .Or

0 .6
0 .2r

23 .4
23 .8r

2 .7
2 .6r

1983

1984

I
II

3 .6
2 ;8r

11 .6
9 .8r

Percent change from corresponding quarter of previous yea r(6)
1983

I
II
III
IV

1 .8
3 .7
3 .8
3 .9

-1 .1
3 .1
6 .3
10 .0

-2 .8
-0 .6
2 .4
5 .9

5 .4
4 .6
3 .6
3 .1

1 .7
1 .3
1 .0
-0 .2

3 .5
0 .9
-0 .2
-0 .8

3 .3
0 .5
0 .0
-3,2

3 .5
0 .8
-0 .2
-1 .5

3 .5
28 .7
46 .3
79 .8

3 .5
2 .7
3 .0
3 .3

ANNUAL

3 .3

4 .5

1 .2

4 .2

0 .9

0 .8

0 .1

0 .6

38 .5

3 .1

11 .8
10 .5r

7 .5
7,5r

3 .6
3 .3r

-0 .9
-1 .0

-0 .4
0 .4r

-3 .0
-1 .4

-1 .1
-O .lr

54 .8
35 .2r

2 .8
2 .9r

1984

I
II

See footnotes
r=revised

4 .0
2 .9r
following

p=preliminary




table 6 .

October 29, 1984
Sources

Bureau of

Labor

Statistics