Full text of Productivity and Costs : Third Quarter 1987 [Preliminary]

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

United States
Department
of Labor
Washington, O.C. 20212

Bureau of Labor Statistics
Historic*!, technical
informations 1202) 52}-y26»
Currant sate » (?G2) 52>-122l or UOB
oMaut: (202) W3-W1)

USDL 87-477

for Releeeei 10:00 AN EST
Honday* November 2, 1937

PBODOCTIfITT AID COSTS
Third Quarter 1987

2-9 percent
2.6 percent
4.5 percent
4-7 percent
4.2 percent

in
in
in
in
in

the buaineaa ..Vt?rv
the nonfant buoinens sector,
manufacturing,
durable gooda manufacturing, and
nondurable gooda «enufactaring.

in 4.'-1.s_ iii"tSj;ir2^:r,."M"" •- auM"i"d in '•"• *-• •«•"
ra

bueinesa,
1

the third-quarter
increases

productivity

Buainea*




** *

In
ii *'

lncr

*"

""d '•
"Ur °f

qU

(eeaeonally
had

-2-

Table A* Productivity and coats; Preliminary third-quarter 1987 measurea
(Seasonally adjusted annual rates)

Productivity

Sector

Output

Hours

Hourly
compensation

Beal
hourly
compensation

Unit
labor
costs

0.3
0.1
-2.4
-2.8
•1.8

1.3
1.3
-3*0
-3.5
•2.1

Percsnt change froa preceding quarter
Business
Nonfarm business
Manufacturing
Durable
nondurable

2,9
2.6
4-5
4.7
4*2

4.2
4.4
6.2
7.9
8.6

1.3
1.7
3.5
3.1
4.2

4.2
4.0
1.4
1.0
2.1

Percent change from same quarter a year ago
Business
Nonfann business
Manufacturing
Durable
nondurable

1.2
1.1
3-9
4.3
3.6

3.4
3.6
5.1
4.7
5-8

2.2
2.4
1.1
0.4
2.2

3.1
3.0
1.2
1.0
1.8

-1.0
-1.1
-2.8
-3.0

-2.3

1.9

1.9
-2.6
-3.1
-1.7

Hourly compensation increased at a 4.2 percent annual rate during the
third quarter of 1987, compared with a 3*3 percent rise during the second
quarter. This neasure includes wages and salaries, supplements, employer
contributions to employee-benefit plans, and taxes. Unit labor costs, which
reflect changes in hourly compensation and productivity, increased at a 1*3
percent annual rate during the third quarter, compared vith a 1.8 percent
gain in the Kay-June period.
Real hourly compensation, which takes into account changes in the Consumer
Price Index for All Urban Consumers (CPI-U), increased at a 0.3 percent annual
rate in the third quarter, compared vith a 1.6 percent decline in the second
quarter of 1987* This narked the first quarter duringwhich real hourly
compensation increased this year.
The implicit price deflator for business output, which reflects changes in
unit labor coats and unit nonlabor payments, increased 1.7 percent in the
third quarter, the smallest quarterly gain this year*
Bonfarm business
Productivity increased 2.6 percent In the nonfarm business sector
during the third quarter of 1967, as output rose 4.4 percent and hours of
all persons—employees, proprietors, and unpaid family workers—increased
1.7 percent. During the second quarter of 1987, nonfarm productivity had
risen 1.4 percent. As in the more comprehensive business sector, the
third-quarter increase in nonfarm business productivity was the largest in
more than a year (table 2).




Mon ro«e 4 - V peewit: i n Mi? t.nirrf quarter, but gain**!
o n I y •".' -.! ;>« r«e M t. wh* n 'the n! - a ngft -, n the :' F J -.1' w».3 safca n x n to accout: t. Tin s
was the. T'i r a t - q u a r t e r MI ttij.9 ./eat that rfja3. hourly compensation did not
c i e c l j n a - ' U n i t labor costs increased i . J percent, compared rich a 1.5 percent
risf.* d u r i n g the second quarter of 1987The implicit pri.ce deflator for nonfat* business output rose 2.0 percent
in the third quartets compared wiih a 2.6 percent increase one quarter
earlier.
"
'•
Manufacturing

Productivity increased at a 4*5 percent seasonally adjusted annual rate in
manufacturing in the third quarter of 19*57, as output rose 8«2 percent and
hours of all persons increased 3*5 percent* This was the largest output
iocrtmae since the first quarter of 1984 (when it rose 17.5 percent) and the
increase in hours ttas the greatest since the second quarter of 1984 (vhen it
rose 4-6 percent). During the second quarter of !987t productivity had risen
6.4 percent, as output rose 4.7 percent and hoars fell 1*6 percent (table 3)*
Hourly compensation of manufacturing workers rose 1*4 percent during the
third quarter, but fell 2.4 percent when the increase in consumer prices iras
taken into account.
Heal hourly compensation has not increased for 5
quarters; the cumulative drop was 2.9 percent. Unit labor coats fell again In
the third quarter (at a 3.0 percent annual rate), the sixth decline in 7
quarters. Manufacturing unit labor costs were 3.4 percent lover in the third
quarter of 1987 than in the fourth quarter of 1985*
Both durable and nondurable, goods industries experienced productivity
increases in the third quarter (tables 4 and 5)» Output and Hours increased
strongly in both eubsectora.
Output and hours grew more rapidly in
nondurable-gooda manufacturing firms where a 4*2 percent productivity gain
reflected an 8*6 percent gain in output and a 4*2 percent increase in hours.
Revised data
Second-quarter productivity and cost measures for business, nonfarm
business, and nonfinancial corporations (tables 1,2 and 6) were revised to
reflect changes in the national income and product accounts .since the last
publication of Productivity and Costs. Also, new seasonal factors introduced
by the Federal Reserve Board affected, output measures used in computing
productivity movements in manufacturing (tables 5 through 5).
lext release date
The next issue of Productivity and Costs is scheduled for release
at 10:00 AH KST, Thursday* December 3, 1987, and will contain preliminary
third-quarter measures for nonfinancial corporations and revised measures for
business, nonfarm business, and manufacturing.




- 4TKCKBICAL HOTfcS

Baa.ihe-.73 sector '.> -cut is- equa? tj gr >6a -fl-t^or.*! ;=r •• u • n , .i ^
ao'iflra. l*aa th" •r*s**of-*M-»orJ'i. a? «o" fe*>r»>. 11 / -erne-Tit f-t;
notiprofit inatitu -is, output oi pavi . ertp: /= ^o f privat^ \ , «- sy,
vaxue of owner-oc-: ii.ied dwelling.". a.=d ',ne ate--.otica discr«»r?; . ': cjm;
tne nattoaal incb.... acoounta. CcrreapoMing exo:/a3io/.3 aro a*^>.' rcaoe in
^nputs. Buainesa ^utput has accounted fcr aV»dat 77 percent of ^ross nati":,.ji.
prouuct in recent y^ars;
Tota:i manufaoturing iaeaaurea are computed by sunuijing series prepared tor the
duraoXe and riondur*oles goods sectors;
The durable sector includes the following 2-digit SIC industries
Primary
metal?* fabricated metal products; nonelectrical machinery; ele-tri-al
machinery; trahspor^atibn equipmshtj instruments? lumber ind lumber products;
furniture and fiictarest stone, clay, and glass productsj and -ikiac^llaneo.^
manufactures. the nondurable sector includea tiieae 2-digit SIC in^astries:
Textile mill products, apparel products, leather and leather produces, urii.tin^
and publishing, chemical and chemical productj, petroleum products, rubber aa.'i
plastic.products, food, 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 in constant
1982' dollarsj less the reat-of-the-world sector, general governne:;t,
unincorporated business, output of nonprofit institutions, output of paid
employees of private households, 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 haa
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 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; mangerial skill; and the
characteristics and effort of the work force*




-5Table 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

Compensation per
hour(1 )

Real
compensation per
hour(2)

Unit
labor
coat

Unit nonlabor payments^)

Implicit
price
deflator(4)

Indexes 1977-100
1986

1987

I
II
III
IV

109.5
109.7
109*6
109.6

127*3
127*5
128*1
129*0

116.3
116*3
116*9
117.8

180.7
182*2
183.6
185.2

100.1
101 .3
101.4
101 .6

165.0
166.2
167.5
169.0

163-1
163,9
165.7
162.4

164-3
t65.4
466-9
166.7

AHHUAL

109-5

128*0

116.9

182.8

101 .0

166.9

163-8

165-9

I
II
III

109-7
rllO.1
p110*9

130.2
131*1
p132*5

118.7
119*1
P119.5

185.8
187.3
pt89.3

100.7
100.3
p100.4

169-4
170.2
P170.7

166.0
rl68*6
P169-7

168-2
r169-6
P170.3

Percent change from previous quarter at annual rate(5)
1986

1987

I
II
III
IV

5-8
0*6
-00
-0*1

6.4
0.7
1.8
3.0

0.5
0.1
2*1
3.1

3.2
3.5
3-0
3.6

1.6
4.8
0.5
0.9

-2.5
2.8
3-3
3.7

7.5
2.1
4-5
-7.7

0/9
2.6
3-7
-0.5

ANNUAL

1.9

3.3

1*4

3.9

2.0

2*0

2.2

2.1

I
II
III

0*5
H*4
p2*9

3*5
3.0
p4.2

3.0
1.6
pi. 3

1.4
3.3
P4.2

-3-7
r-1.6
pO.3

0.9
rl .8
pi- 3

9.0
r6.4
p2.6

r3-4
pi- 7

3-7

Percent change from corresponding quarter of previous year
1936

1987

I
II
III
IV

2*8
2*5

1-3
1.5

4*2
3.4
2.7
2*9

1.3
1.1
1.5
1.4

4.8
4.4
3.7
3.3

1.7
2.7
2.0
1.9

1*9
2.1
2.4
1 .8

2.8
2.2
2.4
1*4

2.2
2. 1
2.4
1 .7

ANNUAL

1.9

3.3

1.4

3.9

2.0

2.0

2.2

2.1

I
II
III

0.2
0.4
pi .2

2*3
2.8
P3.4

2.1
2.5

2.8
2.8
P3.1

0.6
-1.0
p-1 .0

2.7
2.4
pi. 9

1 .8
r2.8
p2.4

2-3
r2.6
P2.1

Gee footnotes following table 6.
r = revised
p=prelirainary




p2.2

November 2, 1987
Source: Bureau of Labor Statistics

-6Table 2. Nonfarm b u s i n e s s s e c t o r : Productivity, h o u r l y compensation, unit labor c o s t , end p r i c e s , seasonally a d j u s t e d

Year and
quarter

Output per
hour
of all persons

Output

Hours
"of all
persona

Compenaation per
hour( 1 )

Real
compensation per
hour(2)

Unit
labor .
cost

Unit nonlabor -payments( 3)

Implici*
price
deflatorlA 1 )

Indexes 1977-100
1986

1987

I
II
III
IV

107 -7
107 .7
107 • 5
107 .5

126,9
127- 1
127-6
128.5

117.9
1 13,0
1 18.7
119.6

180.0
181 .3
182.6
184*4

99-7
100.8
100.9
101 .2

167.2
168.4
169-8
171 .5

164.7
165.2
167.0
163-9

166.4
167.3
168.8
168.8

ANNUAL

107 • 5

127*5

118.6

182. 0

100.6

169-3

165-2

167.8

129-7
t30.7
p132.1

120.6
121.1
p121 ,6

184.9
186. 3
p188. 1

100.2
99-7
P99.7

171 .8
r172.5
P173.1

167.4
rl69-2
p170-6

170.3
171-4
p172.2

I
II
III

107 ,6
r108 .0
p108 .7

Percent change from previoua quarter at annual rate(5)
1986

1987

I
II
III
IV

6.6
0.1
-0 .6
0.0

6.4
0.6
1 .7
2.9

-0,2
0.6
2.3
2.9

3.9
2.9
2.8
4* 0

2.3
4.2
0.4
1.3

-2.6
2.8
3-5
4.0

10.0
1.3
4.2
-7.2

1 .6
2.}
3-7
0.0

ANNUAL

1 .6

3.2

1.6

3- 9

1 -9

2.2

2.4

2-3

I
II
III

0.4
r1 *4
p2 .6

3-8
r3.2
p4.4

3.4
1.7
p1.7

1 .1
3- 0
i>4.0

-3-9
-1 .8
pO.1

0.8
H.5
pi. 3

8.8
r4.6
P3.1

3-4
r2.6
p2.0

Percent change from corresponding quarter of previous year
1986

1987

2• 3
1 .9
1 .1
1•5

4.0
3*3
2.6
2.9

1.7
1 .4
1.6
1 .4

4.5
4. 1
3. 6
3.4

1.4
2.5
1-9
2.0

2.2
2.2
2.5
1 .9

3-2
2.3
2.2
1.9

2.6
2.3
2.4
1.9

ANNUAL

1 .6

3.2

1.6

3- 9

t-9

2.2

2.4

2-3

I
II
III

-0 .1
0.3
Pi .1

2*2
r2.9
P3.6

2.3
2.6
p2.4

2.7
2.7
P3.0

0.5
-1 .0
p-1.1

2.8
r2.4
pi. 9

1 .6
r2.4
P2.2

2.4
r2.4
p2.0

I
II
III
IV

See f o o t n o t e s f o l l o w i n g t a b l e 6.
r= r e v i s e d
p=preliminary




N o v e m b e r 2, 1987
Source: B u r e a u o f L a b o r S t a t i s t ics

-7Table 3» Manufacturing sector: P r o d u c t i v i t y , hourly compensation, and unit labor coat,
seasonally adjusted

Year and
quarter

Output per
hour
of all persons

Output
(6)

Hours
of all
persons

Compensat ion per
hour(l)

Real
com pen sat ion per
hour(2)

Unit
labor
cost

Indexes 1977-100

1986

1987

I
II
III
IV

127.6
r128.4
H29.3
rt29.8

ANNUAL

128.8

I
II
III

r130.8
rt32.9
P134.4

125.2
r125.3
r126.0
r127.1

98.1
97.5
97.5
97.9

181.0
182.1
183.1
184.3

100.3
101.2
101 .2
101.2

141 .9
r141 .8
r141 .7
r142.0

125.9

97.8

182.7

100.9

141.8

r128.4
r129.9
P132.5

98.1
r97.7
p98.6

183.9
r184.8
P185.4

99.6
98.9
P98.3

r14Q.5
r139-0
p138.0

r-2.8
r-0.1
r-0.5
rO.9

Percent change from previous quarter at annual rate(5)

1986

1987

r4.8
r2 . 6
r2.7
r1.7

r3.5
rO.2
r2.3
r3.7

-1.3
-2.3
-0.4
2.0

1.8
2-5
2.2
2.7

0.2
3.8
-0.2
0.0

ANNUAL

3.7

2.8

-0.9

3-3

1.3

I
11
III

r3.2
r6.4
P4.5

r4*0
r4-7
p8.2

0.8
r-1.6
P3.5

-1.0
2.0
p1.4

-6.0
-2.8
p-2.4

I
II
III
IV

-0 . 4

r-4.1
r-4.2
p-3.0

Percent change from corresponding quarter of previous year

1966

1 937

I
II
III
IV

r5.2
r3.5
r3.2
r2.9

r3.8
2.5
r2.3
r2.4

-1.3
-0.9
-0.9
-0.5

4.4
3.4
2.9
2.3

1.3
1.8
1 .2
0.9

r-0.7
r-0. 1
r-0.3
r-0. 6

ANNUAL

3.7

2.8

-0.9

3.3

1-3

-0.4

I
II
"Ill-

r2.5
r3>5
P3-9

r2.5
r3.7
P5-1

0.0

1.6
rl.5
p1.2

-0.7
-2.3

r-1 .0
r-2.0
p-2.6

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




0.2
p1 .1

p-2.8

November 2, 1937
Source: Bureau of Labor S t a t i s t i c s




-,.8 Tab 'p 4 Pwrab- .e ma" -if ac t ri ng sector: Product ; vi$yV hourly compensation, aad un*t labor cost,
seasonally- adjusted
Yea^' and
q aa f 1 3r

Output per
hour

13^3
r1 3 ib . 0

Real
compensa —
t i on p e r

Ur t
la ^ r

99.7
100.5
100.3
100.5

r133.0

97.8

179.9
100.8
181 »6
103.1

134.1

98.0

181 .4

100.2

15^6

r136.9
r137.8
pi40.5

97,0

102,2
182.9
P183.4

98*7

r97.2
p98»0

130.4

rt^.6
ri 33.2
134.1
rt35.3

ANNUAL

136.0

I
II
III

H39*9

.1
II
III

jy .

1987

r'^rnpensa—
* i ? n p0 r

indexes 1 9^7^ * 00

- '

<9i£

Hours
cf aU

Output
(6>

"n? 5

r141 »7
p143,4

98 8

ya.o

97*5

97.9
P97.3

r* r

-i

r« -.- l «1
132l3

r i 50 . 2
•• * O Q ' \

P12!7.9

Percent change from previous quarter at annual rate(5)
1986

r6.7
r2,1

r-4.1
r-1 ,1

r4t4

-0 . 4
3.3
-0.7
0.7

r-5.2
r-0 *. '£
r-2.6
0.6

IV

2.6

r2.7
3,8

ANNUAL

•5*3

3.2

-1.8

3.4

1*4

-1 .7

I
II
III

r 4 *5
r5f 3
P4,7

r4,5
r2»8
i>7.9

0.0
r-2*4
P3it

-U9

-6.8
r-3.1
P-2.0

r-6.1
r-3.5
P-3*5

1.8
2,0

1 987

I
II

in

Percent change from corresponding
1996

I
II
III
IV

r7.3
4-9

rl.6
pi.O

quarter of previous ye.ar

r4.5
4-0

r5.2
3.0
r2.5
2.4

-2.0
-1 .8
-1.9
-1.5

4.9
3.6
2.8
2.1

0.7

r-2.2
-1 .2
r-1 .6
r-1 ,8

ANNUAL

5.2

3.2

-1.8

3.4

1.4

-1 ,7

I
II
III

r3.4
r4.2
P4.3

r2 . 4
r3-4
P4.7

-0.9
-0.7
pO.4

1.3
1 .2
p1 .0

-0.9
-2.5
P-3-0

r-2.1
r-2.9
P-3.1

.

1987

1.2
1.9
1 .7
3.4

-2.4
-3.2
-1.7
1 .1

.

See footnotes following table 6<
r-revised
p=preliminary

1 .1

November 2, 19B7
Source: Bureau of Labor Statistics




- 9Table 5* Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor cost.
seasonally adjusted
Year and
quarter

Output per
hour
of all persons

Output
(6)

Hours
of all
persons

Compensation per
hdur(l)

Real
compensation per
"hour (2)-

Unit
labor
cost

Indexes 1977-100

1986

1987

I
II
III
IV

r116.0
r117.0
H17.0
117.1

r1 12.7
r1 13.4
rl 13-9
1 14.9

97.2
96.9
97.3
98.1

182.7
184.3
185.8
186.5

101 .2
102.4
1 02 . 7
102.4

ANNUAL

116.8

1 13.7

97.4

184.8

102.1

I58o

I
II
III

r117.4
r119.9
p121.2

rl 15.8
1 18.1
p1 20.5

98.6
98.5
P99.5

186.9
188*2
p.1 8-9.1

101.2
100.7
p100.3

r159.V
r156.9
pi 5.6.1

r157.5
r157.5
r158.8
159-3'.

Percent change from pcevious quarter at annual rate(5)
1986

1987

I
II
III
IV

r1 .8
r3.6
rO.1
rO.4

2.3
r2.5
rl.7
r3*6

0.5
-1 .0
1.6
3-3

3-2
3.6
3.4
1.5

1.6
5.0
0.9
-1.1

•1.4.
rO,0
r%3
r"1 .2

ANNUAL

1-5

1.9

0.5

3.3

1.3

1.8

I
II
III

H.1
r8.7
p4.2

r3.1
r8.2
p8.6

1.9
r-0.5
p4.2

0.7
r2.8
P2.1

-4.4
-2.0
p-1.8

r-0.5
r-5-4
p-2.1

Percent change from corresponding quarter of previous year
1986

1987

I
II
III
IV

rl .8
H.3
r1.3
r1.4

r1 .6
r1.7
r1 .8
r2.5

-0.2
0.4
0.6
1.1

3.7
3.2
3.3
2.9

0.6
1 .6
1.6
1.6

rl.9
r1 .8
r2.0
ri.5

ANNUAL

1-5

1-9

0.5

3-3

1.3

1 .8

I
II
III

n.3

r2.7
r4.1
P5.8

1.4
1.6
p2.2

2.3
2.1
p1 .8

0.1
-1.6
p-2.3

rl .0
-0.4
p-1.7

2.5
P3.6

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

November 2, 1987
Source: Bureau of Labor Statistics

- 10 -

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 cpmpensa- hourly
tion
compen(1)
sation(2)

Unit
labor
cost

1987

I
II
III
IV

109.8
109*7
109.9
1*0.$

129.1
128.8
129-3

117.6
117.4
117.6
118i6

177; 2
178.4
179.5
161*6,

ANNUAL

i09*9

i«i4.

117.7

m,9

119.3
119.8

18&;8
182.0

'"-".v.' • j
II •

i 69*7
r109.9
• '•

1986

I
II
III

ANNUAL
1987

' • ^ ': i
II

13&.9
r131 .6

2.1

1.0
-0.. 6
6.7
1,3

1.6

2.6

-2.9
rO.7

i.5
r2.2

0*9

Implicit
price
deflator
(4)

161 .5
^162.6
163.2
.163*8

180.7
180.6
184-2
183*2

166.3
167.2
168.5
168.7

129-7
129-5
130.6
127-7

161 .9
162.7
164-6
163-8

98.9

t62.8

182.2

167.7

129*3

163-1

97-4

164.6
r165.6

r186.6

169*7
r170.9

Mi

165*2
* ,*-, ,\ • ' ~

2 . .6

1.8
... 4.0

2.5
3.?' ,

6.0
6.8

i .0

3*5

1 .6

4.6
1.6

-0.5
r2.6:

3^5 •'.

Unit
profits
(9)

98.2
99.1
99.2
99.3

Percent change from previous quarter at annual rate(5)
4*4
-0.9
1.6
3.4

3.3

.-

Total
unit
cost
(8)

., . „ _ ; • ,

Indexes 1 977*100
1986

Unit
nonlabor
cost(7)

:

0.1

r

r

1.3

3.0
-0.2
8; 2
-2.3

0.9
2.0
3*3
0.3

3-0
-0.5
, 3.3
-8.5

.1.1
1 .8
3-3
-0.5 .

1.9

2.2

2.6

-3.4

1.5

-5.5

2.5

2.2

r2.0

2.4
r2.9

14.7

r-2.2

3-5
r2.8.

-1 .7
-2. 1
-8*4
-0.8

1 -3
1 -4
1*7
.1.4-.

-3-4

i.5 '

r2-.6

:•"££

Percent change from corresponding quarter of previous year
1936

I
II
III
IV

2.6
1 .8

4.1
2-7

1.4
0.8

4.3

0.7
1 -5

2. 1

0.6

"3*3
3*0

1 .2
2.2
1.6
1.6

ANNUAL

1.6

1.0

3.5

1.6

Y.o.

2.0
=2.Q

-6.2
-1.7

o.o

1987
-II

rO . 2

r2.2

Hee footnotes following t a b l e 6.
r=revised
p-preliminary




1.6
2. p

1-5

1 .0
"."3-8
2*1
2.2

1.9 .
~~rT .8 -

1.7
1 .7
2,9

2.6

^rf;J.

-•---

November 2, 1987
Bureau of Labor S t a t i s t i c s




-11SOURCE: 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:
Productivity and cost measures are regularly revised as more
complete information becomes available. Preliminary results are published 30
days after the close of the reference period; revisions appear JO days later,
and second revisions after an additional 60 days. In the business sector, the
probability is 0*95 that the third publication (second revision) of a quarterly
index of output per hour of all persons will differ from the preliminary value
by between -2.0 and +2.0 index points.
This interval is based on the
performance of this measure between the first quarter of 1976 and the second
quarter of 198?.
Footnotes, Tables 1-6
(1) 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*
(2) Compensation per hour adjusted for changes in the Consumer Price Index for
All Urban Consumers.
(3) Unit nonlabor payments include profits, capital consumption
interest, rental income of persona, and indirect taxes.

allowances,

(4) Current dollar gross product divided by constant dollar gross product.
(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) Quarterly manufacturing output measures are based on the index of
industrial production prepared monthly by the Board of Governors of the
Federal Reserve adjusted by BLS to annual manufacturing output levels
(gross product originating) from the National Income and Product Accounts
prepared by the Bureau of Economic Analysis- of the U.S. Department of
Commerce*
(7) Unit nonlabor cost includes capital consumption allowances, interest,
rental income of persons, and indirect taxes.
(8) Total unit cost is the sum of labor and nonlabor costs.
(9) Unit profits include corporate profits with inventory valuation and capital
consumption adjustments.

*U.S.GOVERNMENT PRINTING OFF*1CE: 1937- 202-106t8QCM9