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Historical, technical USDL 84-49'1 information : (202) 523-9261 For Release : 10 :00 AM EST Current data : (202) 523-1221 or 1208 Wednesday . November 28, 1984 Media contact : (202) 523-1913 PRODUCTIVITY AND COSTS Third Quarter 1984 Revised Data for Business, Nonfarm Business, and Manufacturing and Preliminary Measures for Nonfinancial Corporations Productivity, as measured by output per hour of all persons, increased 0 .9 percent during the third quarter in the business sector but declined 0 .7 percent in nonfarm business, according to revised 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 .0 percent and hours of all persons engaged in the sector increased 1 .1 percent . Nonfarm business output increased 1 .0 percent and hours rose 1 .7 percent . Productivity increased rapidly in manufacturing . Preliminary measures announced today show that productivity decreased 2 .1 percent in nonfinancial corporations (table B) . The annual rai-'c of productivity change in the third quarter in major sectors were : 0 .9 -0 .7 7 .8 8 .4 6 .8 -2 .1 percent percent percent percent percent percent in in in in in in the business sector, the nonfarm business sector, manufacturing, durable goods manufacturing, nondurables goods manufacturing, and nonfinancial corporations . Third quarter measures are summarized in tables A and B, and appear in detail in tables 1 through 6 . Business sector Productivity advanced 0 .9 percent in the third quarter in the business sector, as output increased 2 .0 percent and hours rose 1 .1 percent (seasonally adjusted annual rates) . Gains in productivity, output, and hours were all larger during the second quarter (table 1) . The third-quarter increase in productivity was the smallest since the second quarter of 1982 . The increase in hours reflected a 2 .8 percent gain in employment coupled with a 1 .7 percent reduction in the length of the average work week . During the second quarter, employment rose 5 .0 percent and average weekly hours increased 0 .9 percent . Hourly compensation, 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 . Centennial Real hourly compensation, which is adjusted for changes in the Consumer Price of Labor Index for All Urban Consumers (CPI-U), increased 0 .9 percent in the third Statistics quarter, compared with a 1 .8 percent decline during the second quarter . Unit labor costs (compensation per unit of output), which reflect changes in productivity and hourly compensation,, increased at a 3 .6 percent annual rate compared with a 2 .9 percent decline during the second quarter . Table A. Productivity and costs : Revised third quarter 1984 measures (Seasonally adjusted annual rates) Sector Real Hourly hourly Unit ccmpen- ccmpen- labor Hours sation sation costs Produc tivity output REVISED Percent change from preceding quarter Business 0 .9 2 .0 1 .1 Nonfarm business -0 .7 1 .0 1 .7 Manufacturing 7 .8 7 .5 -0 .3 Durable 8 .4 10 .5 2 .0 Nondurable 6 .8 3 .0 -3 .6 4 .5 0 .9 3 .6 3 .8 0 .2 4 .5 3 .6 0 .1 -3 .8 2 .6 -0 .9 -5 .3 4 .9 1 .3 -1 .8 Percent change fran same quarter a year ago Business 2 .8 8 .0 Nonfarm business 2 .2 7 .7 Manufacturing 3 .6 9 .6 Durable 4 .3 13 .0 Nondurable 2 .6 4 .7 5 .1 5 .4 5 .8 8 .3 2 .1 4 .7 0 .5 1 .8 4 .4 0 .2 2 .2 3 .9 -0 .3 0 .3 3 .4 -0 .7 -0 .9 4 .2 0 .0 1 .6 The implicit price' deflator for the business sector-which reflects changes in unit labor costs and unit nonlabor payments-increased 3 .3 percent in the third quarter, compared with a 2 .9 percent gain during the second quarter. Nonfarm business Productivity declined at a 0.7 percent annual rate in the nonfarm business sector during the third quarter, the first decline since the second quarter of 1982 . Output increased 1 .0 percent and hours of all persons increased 1 .7 percent . During the second quarter, productivity increased strongly, and larger gains were recorded in output and hours (table 2) . Hourly compensation increased 3 .8 percent in the third quarter, nearly the same as the increase during the second quarter . However, because of the difference in the productivity change in the second and third quarters, unit labor costs rose in the third quarter, after having declined during the second quarter . Real hourly compensation showed a 0 .2 percent increase during the third quarter when the change in the CPI-U is taken into account . There was no change in this measure during the second quarter . Manufacturing Manufacturing productivity increased 7 .8 percent in the third quarter, as output rose 7 .5 percent and hours declined 0 .3 percent . Productivity . rose 8 .4 percent in durables and 6 .8 percent in nondurables (seasonally adjusted annual rates) . The growth in output was uneven ; more rapid gains occurred in durables (10 .5 percent) than in nondurables (3 .0 percent) . All of the decline in hours occurred in nondurables ; paid hours increased among durable goods producers (tables 3-5) . As BLS reported in the October release of preliminary third quarter measures, productivity movements in manufacturing and the more comprehensive 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 a decline 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 ETployment Survey and, for the self-employed, the BLS monthly household survey . While hours increased in durable manufacturing, a decline in nondurables was sufficient to cause a drop for the quarter for manufacturing as a whole . Hourly compensation in manufacturing increased at a 3 .6 percent annual rate .in the third quarter, compared with a 2 .9 percent increase during the second quarter . Unit labor costs declined 3 .8 percent in the third quarter, the second consecutive drop in these costs (during the second quarter, a 1 .1 percent decline occurred) . Real hourly compensation, which takes into account changes in the CPI-U, increased 0 .1 percent-in the third quarter . Nonfinancial corporations Productivity declined in nonfinancial corporations at a 2 .1 percent annual . rate during the third quarter of 1984, according to preliminaryy measures reported today (table B) . During the second quarter, productivity advanced 2 .8 percent (seasonally adjusted annual rates) . Third-quarter gains in output' and hours were both smaller than the increases during the first 2 quarters of the year ; the increase in output was the smallest of the recovery period (table 6) . . . This sector includes all corporations doing business in the United States with the exception of banks, stock and commodity brokers, and finance and insurance agencies .` Although the third-quarter output movements were similar in nonfinancial corporations and the more comprehensive nonfarm sector (0 .6 percent and 1 .0 percent, respectively), hours moved up more in corporations (2 .7 percent) than in nonfarm business (1 .7 percent) . The corporate sector omits the hours of proprietorships and upaid family workers (as well as all hours in finance), which are part of nonfarm business hours . Hourly compensation of employees of these corporations increased 3 .3 percent in the third quarter, and unit labor costs rose 5 .5 percent . During the second quarter, compensation rose more slowly and unit labor costs fell . Real hourly compensation declined for the second consecutive quarter . Unit nonlabor payments, which include capital consumption allowances and indirect business taxes, increased 0 .3 percent, and unit profits declined 11 .7 percent . This was the first quarter in which profits per unit of output declined since the fourth quarter of 1982, when a 41 .9 percent drop was recorded . The implicit price deflator for the nonfinancial corporate sector rose 3 .6 percent in the third quarter, the largest gain of 1984 . Table B . Productivity and cost in nonfinancial corporations : Preliminary third-quarter 1984 measures (Seasonally adjusted annual rates) Sector Real Hourly hourly Produc- compen- compentivity Output Hours sation sation Unit labor costs Unit profits 5 .5 -11 .7 2 .3 15 .7 PRELIMINARY " Percent change fran preceding quarter Nonf inanc ial corporations -2 .1 0 .6 2 .7 3 .3 -0 .3 Percent change from same quarter a year ago Nonfinancial corporations 1 .0 7 .5 6 .4 3 .3 -0 .8 Revised measures The latest productivity measures for the third quarter of 1984 show slower gains than had been reported on October 29, based on preliminary information then available . As can be seen in the comparisions in table C, the slower rates of productivity advance in the revised measures primarily reflect downward revisions in the output movements . Table C . Preliminary and revised productivity and related measures, third quarter 1984 (Seasonally adjusted annual rates) Sector Real hourly compensation Unit labor costs utput ours Hourly compensation 1 .7 0 .9 2 .7 2 .0 1 .0 1 .1 4 .5 4 .5 0 .9 0 .9 2 .7 3 .6 0 .0 -0 .7 1 .6 1 .0 1 .6 1 .7 3 .7 3 .8 0 .1 0 .2 3 .7 4 .5 8 .0 7 .8 7 .4 7 .5 -0 .5 -0 .3 3 .7 3 .6 0 .1 0 .1 --4 .0 -3 .8 Productivity Business : Preliminary Revised Nonfarm business : Preliminary Revised Manufacturing : Preliminary Revised TECHNICAL NUM 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 discrepancy 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 . Nonfinancial 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 from 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 .oompensation, unit labor cost, and price, Output per hour of all persons Year and quarter Output Hours of all persons Compensation per hour(1) seasonally adjusted Real compensation per hour(2) Unit labor cost Unit nonlabor payments(3) 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 .5 160 .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 ANNUAL 103 .7 111 .0 107 .1 161 .7 98 .4 156 .0 145 .5 152 .4 105 .7 107 .0 107 .3r 117 .8 121 .0 121 .6r 111 .4 113 .0 113 .3 166 .7 167 .5 169 .4r 98 .6 98 .2 98 .4 157 .7 156 .5 157 .9r 151 .6 157 .2 158 .3r 155 .6 156 .7 158 .Or 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 7 .2 6 .0 1 .1r 6 .2 1 .9 4 .5 1 .2 -1 .8 0 .9 2 .1 -2 .9 3 .6r 7 .0 15 .4 2 .8r 1983 1984 I II III 4 .0 4 .9 0 .9r 11 .4 11 .2 2 .Or 3 .7 2 .9 3 .3r Percent change from corresponding quarter of previous year(6) _ 1983 I II III IV ' 1 .2 ANNUAL 1984 I II III .: 3 .3 3 .4 3 .1 2 .7 3 .5 3 .3 2 .8r See footnotes following table 6 . r=revised p=preliminary . . -0 .2' 1 .3 0 .7 0 .3 1 .3 -0 .1 0 .6 1 .3 5 .5 8 .9 9 .2 4 .3 1 .1 1 .6 6 .3 3 .0 4 .1 4 .0 4 .7 -0 .4 -0 .3 0 .5 0 .6 0 .7 1 .8r 8 .4 8 .7 7 .Or 3 .0 3 .3 3 .5 0 .1 2 .6 5 .2 4 .6 3 .3 3 .7 2 .1 4 .4 1 .7 10 .2 9 .9 8 .0r 6 .5 6 .4 5 .1 3 .4 6 .1 8 .4 ;: 4 . 5 .,, : 5:8 1 .4 3 .5 2 .6 2 .7 3 .3 November 28, 1984 Source : Bureau of Labor Statistics Table 2 . Nonfarm business sector : Productivity, hourly compensation, unit labor cost, Year and quarter Output per hour of all persons Output Hours of all persons Compensation per hour(1) and prices, seasonally adjusted Real axnpensation per hour(2) Unit labor cost Unit nonlabor payments(3) Implicit price deflator(4) Indexes 1977=100 1 II III IV 101 .6 103 .6 104 .1 104 .4 106 .7 110 .4112 .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 ANNUAL 103 .4 111 .2 107 .5 162 .0 98 .6 156 .6 147 .0 153 .4 105 .2 106 .6 106 .4r 118 .0 121 .0 . . . 121 .3r 112 .3 113 .6 114 .lr 166 .5 168 .0 169 .5 98 .5 98 .5 98 .5 158 .3 157 .6 159 .4r 152 .2 156 .8 157 .8r 156 .3 157 .3 :158 .8r 1983 1984 1 II III Percent change from previous quarter at annual rate(s) 1983 1 II III IV 4 .4 8 .1 2 .1 1 .0' ANNUAL 3 .5 ; 1984 I . II III 2 .9 5 .5 -0 .7r ° 6 .0' 14 .3 8 .79 .1 5 .0 • . 10 .3 10 .6 1 .0r 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 1 .5 4 .9 1 .6 1 .4 7 .4 3 .2 7 .2 4 .8 1 .7r 6 .1 3 .7 3 .8r 1 .0 0 .0 0 .2r 3 .1 -1 .7 4 .Sr 2 .3 12 .5 2 .5r 2 .8 2 .8 3 .8r Percent change from corresponding quarter of previous year(6) 1983 1984 1 II III 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 ANNUAL 3 .5 5 .0 1 .5 4 .9 1 .6 1 .4 7 .4 3 .2 3,5 2 .9 2 .'2'r 10 .6 9 .7 7,7r 6 .9 6 .6 5 .4 4 .0 4 .0 4 .4 -0 .5 -0 .3 0 .2 0 .4 1 .1 2 .2r 8 .3 7 .1 5 .6r 2 .9 3 .0 3 .3r 1 II III See footnotes following table 6 . r--revised p=preliminary November 28, 1984 Source : Bureau of Labor Statistics Table 3 . Manufacturing sector : Productivity, hourly compensation, and unit labor cost, seasonally ad justed Year and quarter Output per hour of all persons Output (7) Hours of all persons Compensation per hour(l) Real compensation per hour(2) Unit labor cost Indexes 1977=100 1983 1 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 .3 117 .5r 113 .0 115 .4 117 .5 98 .9 100 .1 100 .0r• 167 .1 _ 168 .3_ 16909 98 .9 98 .7 98 .7 146 .4 146 .0 144 .5 1984 1 11 III Percent change fran previous quarter at annual rate(s) 1983 1 II III IV ANNUAL 1984 1 II III _ 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' 4,3 5 .2 0,9 3 .4 0 .2 -0 .8 3 .7 4 .0 7 .8r 12 .9' 8 .9 7,5r 8,8 4 .6 -0 .3r Percent chant, 1983 6 .2 '` 2 .9 3 .6r 1 .1 -0 .8 0 .1 2 .3 -1 .1 -3 .8r frcan corresponding quarter of previous year(6) 1 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 .3 5 .8r 2 .7 3 .3 3 .9 -1 .7 -1 .0 -0 .3 1984 I II III 4 .7 4 .1 3 .6r See footnotes following table 6 . r=revised p=preli;ninary 14 .8 12 .7 9 .6 -1 .9 -0 .7 0 .3r November 28, 1984 Source : Bureau of Labor Statistics Table 4 . LUrable manufacturing sector : Productivity, hourly compensation, seasonally adjusted(11) Year and Output per quarter hour of all persons output Hours Compensa(7) of all tion per persons hour(l) and unit labor Real compensation per hour(2) cost, Unit labor cost Indexes 1977=100 1983 I II III IV ANNUAL 1984 I II III 108 110 113 113 .5 .8 .5 .1 95 100 105 109 .6 .1 .7 .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 .4 111 .5 102 .6 92 .0 162 .5 98 .9 145 .8 115 .1 116 .0 118 .3r 113 .9 116 .5 119 .4r 165 .8 167 .0 168 .Or 98 .1 97 .9 97 .7 144 .0 144 .0 142 .Or 98 .9 100 .4 100 .9r Percent change from previous quarter at annual rate(s) 1983 I II III IV ANNUAL 1984 I II III 7 8 10 -1 .2 .7 .2 .2 10 .7 20 .5 24 .2 13 .2 3 .3 10 .9 12 .8 14 .6 3 .9 0 .1 0 .8 2 .1 3 .6 -4 .1 -3 .2 -2 .3 -3 .1 -7 .9 -8 .5 3 .3 5 .6 5 .7 0 .1 3 .1 -0 .1 -2 .3 18 .9 9 .5 10 .5r 10 .9 6 .2 2 .Or 6 .1 2 .8 2 .6r 1 .1 -0 .8 -0 .9r -1 .0 -0 .2 -5 .3r 7 .2 3 .1 8 .4r Percent change from corresponding quarter of previous year(6) 1983 I II III IV ANNUAL 1984 I II III See footnotes r=re vised p=preliminary 4 5 5 6 .7 .7 .5 .1 5 .6 6 .1 4 .7 4 .3r following table 6 . -3 1 8 17 .8 .8 .5 .0 -8 -3 2 10 .1 .7 .9 .3 5 3 1 1 .5 .4 .8 .7 1 .8 0 .1 -0 .8 -1 .6 0 .7 -2 .2 -3 .5 -4 .2 5 .7 0 .1 3 .1 -0 .1 -2 .3 19 .2 16 .3 13 .Or 12 .3 11 .1 8 .3r 2 .2 2 .9 3 .4 -2 .2 -1 .3 -0 .7 -3 .7 -1 .7 -0 .9r November 28, 1984 Source : Bureau of )Labor Statistics Table 5 . Nondurable manufacturing sector : seasonally ad justed(12) ` Year and quarter output per hour of all persons Output (7) Productivity, hourly compensation, and unit Hours of all persons labor cost, Compensation per hour(l) Real compensation per hour(2) Unit labor cost 164 165 165 167 101 101 100 100 149 148 146 147 Indexes 1977=100 1983 110 110 113 113 1 II .111 IV ANNUA)L 1984 1 II III .0 .9 .3 .2 102 105 109 110 .6 .7 .5 .5 93 95 96 97 .3 .3 .6 .6 .5 .1 .7 .1 .7 .0 .3 .1 .6 .8 .2 .6 111 .9 107 .1 95 .7 165 .6 100 .7 148 .0 112 .8 114 .3 116 .2r 111 .7 113 .8 114 .7r 99 .0 99 .5 98 .6 169 .5 170 .6 172 .7r 100 .3 100 .0 100 .3 150 .2 149 .2 148 .5r Percent change from previous quarter at annual rate(5) 1983 1984 1 II III IV 1 .5 3 .4 9 .0 -0 .6 2 .8 12 .5 15 .3 3 .4 ANNUA)L 2 .4 4 .4 1 II III -1 .3 5 .5 6 .8r Percent change 1983 1984 4 .4 8 .0 3 .Or 1 8 5 4 .3 .8 .8 .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 2 .0 4 .1 0 .9 1 .7 0 .8 -1 .0 1 .3r 7 .2 -2 .6 -1 .8r 5 .8 2 .4 -3 .6r 5 .8 2 .7 4 .9r from corresponding quarter of previous year(6) 1 1 .4 0 .1 -1 .4 6 .2 4 .5 3 .2 2 .7 1 .1 0 .6 -0 .6 2 .2 0 .6 -0 .6 ANNUAL 2 .4 4 .4 2 .0 4 .1 0 .9 1 .7 2 .6 3 .1 2 .6r 8 .8 7 .7 4 .7r 6 .1 4 .5 2 .lr 3 .0 3 .3 4 .2 -1 .4 -0 .9 0 .0 II III IV 1 II III 2 .2 2 .7 3 .3 See footnotes following table 6 . r=revised p=preliminary 3 .1 6 .2 8 .4 0 .9 3 .5 4 .9 2 .5 4 .7 0 .4 0 .2 1 .6r November 28, 1984 Source : Bureau of )Labo r Statistics Table 6 . Nonfinancial corporations : Productivity , hourly compensation , and prices , seasonally adjusted Year and quarter output per all employee hour Output Employee hours Hourly Real compensa - hourly tion compensation ( 2) ( 1) Unit labor cost unit labor cost, unit profits, Unit nonlabor cost ( 8) To t l Unit -unit cost (9) . mY elicit proprice fits . deflato ' (10)` 4) ( Inde xes 1977=100 1983 .0 .1 .4 .3 156 .7 155 .2 154 .4 154 .7 92 111 126 135 .5 .8 .6 .9 149 .4 150 .2 151 .2 152 .6 151 .8 164 .9 155 .2 117 .2 150 .9 152 .5 152 .3 154 .4p 162 .0 162 .8 165 .2p 155 .0 155 . .0 157 .2p 143 .2 151 .1 146 .5p 153 .6 154 .6 156 .Op I II III IV 104 .0 105 .8 107 .2 107 .2 107 .5 111 .4 114 .7 117 .0 103 105 106 109 .4 .2 .9 .2 159 .2 160 .6 161 .8 162 .6 98 .4 98 .2 98 .0 97 .4 153 151 150 151 ANNUAL 106 .1 112 .6 106 .2 161 .0 97 .9 108 .1 108 .9 108 .3p 120 .2 123 .1 123 .3p 111 .2 113 .1 113 .8p 164 .8 165 .8 167 .2p 97 .5 97 .2 97 .2p 1984 I II III Percent 1983 I II III IV 3 .2 7 .5 5 .3 -0 .2 ANNUAL 1984 I II III 4 15 12 8 change from previous quarter .4 .1 .4 .4 1 .2 7 .1 6 .7 8 .6 3 .9 3 .5 3.1 2 .0 3 .3 4 .5 1 .2 4 .2 3 .6 2 .8 -2 .1p 11 .6 9 .8 0 .6p 7 .7 6 .8 2 .7p 5 .7 2 .4 3 .3p 3 -0 -1 -2 .1 .7 .9 .7 167 165 164 163 at annual .5 .8 .0 .4 0 .7 -3 .7 - 2 .1 2 .1 0 .9 0 .7 -1 .3 - 0 . 3p rate(S) -4 -4 -1 -2 .1 .5 .7 .6 -0 .7 -3 .9 - 2 .0 0 .8 0 .8 0 .1 0 .6 2 .0 -0 .4 5 . 5p - 3 .2 2 .0 6 . 2p 124 112 64 32 .6 .8 .8 .6 4 .7 2 .3 2 .8 3 .6 38 .5 3 .1 0 .6 23 .4 0 .2 23 .8 5:'1 p ,5 -11 . 7 p 2 .72 .6 3 6•P S Percent change from corresponding quarte r of previous year(6) 1983 I 1 .8 II III IV 3 .7 3 .8 3 .9 ANNUAL 1984 I II III See footnotes r=revised 3 .3 4 .0 2 .9 1 op -1 .1 -0 .6 2 .4 5 .9 4 .5 11 .8 1, 5 ~sA .5p7 followin g table 6 . p=preliminary -2 .8 3 .1 6 .3 10 .0 5 .4 4 .6 3 .6 3 .1 1 .2 4 .2 7 .5 7 .5 6 .4p 3 .6 3 .3 3 .3p 0 .5 - 0 .0 -3 .2 0 .8 • '/_0 .2 : - 1 .5 3 .5 28 .7 46 .3 79 .8 3 .5 1 .0 - 0 .2 0 .9 -,0 .2 -0 .8 0 .9 0 .8 0 .1 0 .6 38 .5 3 .1 -0 .9 - 1 .0 - 0 8p - 0 .4 0 .4 .3pj -3 .0 -1 .4 , 0 .5p - 1 .1' - 0 .1 54 .8 35 .2 15 .7p 2 .8 1 .7 1 .3 3 .5 C f 3 .3 2 .7 3 .0 ` 3 .3 2 .9 `. 3 ~ph ~r November 28, 1984 Source : Bureau of )Labor Statistics a ~~ V 1 fig P 8 ~ Footnotes, 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 1984, the probability is 0 .95 that the interval between -1 .8 and 2 .0 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 compounded at annua.i rate from 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 in the Consumer Price Index for All Urban Consumers . (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 .
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