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News
Bureau of Labor Statistics
Historical, technical
information: (202) 523-9261
Current data : (202) 523-1221
Media contact: (202) 523-1913
United States
Department
of Labor
Washington, D.C. 20212
USDL 90-569
Wire embargo, until 10:00 AM ESI
Tuesday, November 6, 1990
PRODUCTIVITY AND COSTS
Third Quarter 1990
The Bureau of Labor Statistics of the U.S. Department of Labor today
reported preliminary productivity data—as measured by output per hour of all
persons—for the ^hjLrcp cpiarter of-J.330. The data show that productivity
advanced moderately in business-and nonfarm business, while manufacturing
showed a much larger increase. This pattern of faster productivity gains in
manufacturing has occurred frequently in the past. The preliminary seasonally
adjusted annual rates of productivity change in the third quarter were:
1.9 percent in the business sector,
1.6 percent in the nonfarm business sector,
5.6 percent in manufacturing,
7.3 percent in durable goods manufacturing, and
2.'9 percent in nondurable goods manufacturing.
Third-quarter measures are summarized in table A and appear in detail in
tables 1 through 5.
Business
Productivity increased at a 1.9 percent annual rate during the third
quarter of 1990 in the business sector, as output rose 1.5 percent and hours
of all persons engaged in the sector decreased 0.4 percent (seasonally
adjusted annual rates). This was the largest increase in business
productivity since the third quarter of 1988 (when a 2.5 percent gain
occurred). The hours decrease partly reflects a decline in farming during the
July-September period. During the second quarter of 1990, productivity had
increased 0.6 percent (table 1). ' In the third quarter of 1990, business
employment fell 0.1 percent, the first employment decline since 1982, and
average weekly hours decreased 0.3 percent. The length of the.average work
week has declined for the past 4 quarters.
These productivity and cost series are based on revised measures of labor
input which reflect:
Benchmarking of employment levels collected in the
regular monthly BLS Current Employment Survey sample to March 1989 Unemployment Insurance levels, results of the 1989 Hours at Work Survey, the
adoption of the 1987 Standard Industrial Classification (SIC), and new seasonal factors which take account of both the new SIC and benchmarks. Historical measures are available from the Office of Productivity and Technology, Division of Productivity Research, telephone (202) 523-9261, and on
the BLS Major Sector Labor and Multifactor Productivity Data Diskette.
Diskette ordering information is given on page 19.
Table A. Productivity and costs: Third-quarter 1990 measures
(Seasonally adjusted annual rates)
Sector
Hourly
Produccompentivity Output Hours sation
Real
hourly Unit
compen- labor
sation
costs
Percent change from preceding quarter
Business
Nonfarm business
Manufacturing
Durable
Nondurable
1.9
1.6
5.6
7.3
2.9
1.5
1.5
3.6
4.2
2.5
-0.4
-0.1
-1.9
-2.9
-0.4
4.4
4.5
3.7
4.3
3.0
-1.9
-1.8
-2.6
-2.0
-3.2
2.5
2.8
-1.7
-2.8
0.1
Percent change from same quarter a year ago
Business
-0 .2
Nonfarm business -0 .5
4 .0
Manufacturing
4.6
Durable
Nondurable
3 .1
0.6
0 .5
2.1
2 .2
1 .9
0.7
1,0
-1 .9
-2 .4
-1 .1
4 .1
3 .9
3 .3
3 .0
3 .8
-1 .4
-1 .5
-2 .1
-2 .4
-1 ,6
4.3
4.4
-0.7
-1.5
0.7
Hourly compensation increased at a 4.4 percent annual rate during the
third quarter of 1990, compared with a 5.4 percent gain during the previous
quarter. This measure 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 2.5
percent annual rate during the third quarter, compared with a 4.7 percent
increase during the second quarter.
Real hourly compensation, which takes into account changes in the Consumer
Price index for All Urban Consumers (CPI-U), decreased at a 1.9 percent annual
rate during the third quarter, marking the seventh decline in the last 8
quarters. During the second quarter of 1990, it had increased at a 1.6
percent annual rate. With the third quarter decline, real hourly compensation
stood at 101.7 (1982*100), the same as in 1976.
The implicit price deflator for business output, which reflects changes in
unit labor costs and unit nonlabor payments, increased 2.8 percent in the
third quarter, compared with 4.6 percent increases in both the first and
second quarters.
Nonfarm busin*8a
Productivity increased at a 1.6 percent annual rate in the nonfarm
business sector during the third quarter of 1990, as output rose 1.5 percent
and hours of all persons—employees, proprietors, and unpaid family workers—
decreased 0.1 percent. During the second quarter of 1990, productivity had
increased 0.3 percent in this sector. Quarterly output gains have been fairly
steady during 1990, while hours have slowed in this sector (table 2). The
third-quarter drop in hours was the first since the second quarter of 1986
(when hours fell 0.8 percent).
Hourly compensation increased 4.5 percent in the third quarter, but was
down 1.8 percent when the increase in the CPI-U was taken into account.
During the second quarter, the comparable changes were 5.0 percent and 1.2
percent, respectively. As in the more comprehensive business sector, the
third-quarter decline in real hourly compensation was the seventh in the past
8 quarters. Unit labor costs increased 2.8 percent, compared with a 4.7
percent rise during the second quarter of 1990.
The implicit price deflator for nonfarm business output rose 3.0 percent
in the third quarter, compared with a 4.8 percent Increase one quarter
earlier.
Manufacturing
Productivity grew more rapidly in manufacturing than in the more
comprehensive business and nonfarm business'sectors. Output per hour of all
persons—labor productivity—increased at a 5.6 percent seasonally adjusted
annual rate in manufacturing in the third quarter of 1990, compared with a 3.1
percent gain during the second quarter. The third-quarter gain was the
largest since 1987 (when it grew 6.5 percent in the second quarter). In the
third quarter of 1990, output increased 3.6 percent and hours of all persons
decreased 1.9 percent. Manufacturing hours have declined in 6 of the past 8
quarters. Productivity gains were larger among durable goods producers, as
output increased more rapidly while hours declined more than in nondurables.
Hourly compensation of all manufacturing workers increased 3.7 percent
during the third quarter, compared with a 4.7 percent rise during th* second
quarter.
Real hourly compensation fell 2.6 percent in the third quarter when
the increase in consumer prices was taken into account. Unit labor costs
declined at a 1.7 percent annual rate in the third quarter, compared with a
1.6 percent increase during the second quarter of 1990.
R*via«d measures
Previous and revised productivity and cost measures for the second
quarter are compared in table B for business, nonfarm business, manufacturing,
and nonfinancial corporations. The revised movements are based on more
complete information than was available on September 6 when the previous
values were announced.
Table B. Previous and revised productivity and related measures,
second-quarter 1990
Quarterly percent change at seasonally adjusted annual rate
Productivity
Hourly
compensation
Real
hourly Unit
compen- labor
sation costs
Output
Hours
0.6
1.4
1.2
-0.3
0.5
6.1
5.4
2.4
1.6
4.4
4.7
Nonfarzn business:
Previous
1.5
Current
0.3
1.5
1.2
0.0
0.9
5.6
5.0
2.0
1.2
4.3
4.7
Manufacturing:
Previous
Current
4.0
4.3
0.1
1.2
6.3
4.7
2.5
1,0
2.2
1.6
Nonfinancial corporations:
Previous
1.7
1.6
Current
1.9
2.8
-0*1
0.9
5.9
6.6
2.1
2.8
4.2
4.6
Sector
Business:
Previous
Current
1.7
4.0
3.1
In addition, appendix tables 1*6 show revisions in hours which reflect
the incorporation of four changes in the labor input series: The incorporation
of the 1987 benchmark to Unemployment Insurance levels, the adoption of the
1987 Standard Industrial Classification of Industries, the results of the 1989
Hours at Work Survey, and the adoption of new seasonal factors for the new
monthly employment levels, . Also affected are series which depend on the
hours measure—productivity, hourly compensation, real hourly compensation,
and, to a lesser extent, unit labor costs and unit nonlabor payments. The
Bureau of Economic Analysis of the U.S. Department of Commerce recently noted
that compensation of employees for 1988 was slightly misstated because the
year contained 53 Fridays, which is the most coiwnon payday. Accordingly, 1988
compensation levels have been revised downward by 0.6 percent.
Next release date
The next release of productivity and cost measures is scheduled for 10:00
AM 1ST, Wednesday, December 5, 1990. Third-quarter measures for nonfinancial
corporations will be released at that time.
TECHNICAL NOTES
Labor Input: The primary source of hours and employment data is the BLS Current Employment Statistics (CES) program, which provides monthly survey data
on total employment and average weekly hours of production and nonsupervisory
workers in nonagricultural establishments.
Jobs rather than persons are
counted. Weekly hours are adjusted to the hours at work definition using the
BLS Hours at Work Survey, conducted for this purpose.
Data from the BLS Current Population Survey (CPS) are used for farm labor; in the nonfarm sector, the National Income and Product Accounts (NIPA),
prepared by the Bureau of Economic Analysis of the Department of Commerce and
the CPS are used to measure labor input for government enterprises, proprietors, unpaid family workers, and paid employees of private households.
Output: Business sector output is equal to gross national product (GNP) in
constant 1982 dollars, less the rest-of-the-world sector, general government,
output of nonprofit institutions, output of paid employees of private households, rental value of owner-occupied dwellings, and the statistical discrepancy in computing the NIPA. Corresponding exclusions also are made in labor
inputs. Business output was about 81 percent of GNP in 1989. Nonfarm business, which also excludes farming, was about 79 percent of GNP in 1989.
Total manufacturing measures are computed by summing series prepared for
the durable and nondurable goods sectors. Durables include the following 2digit 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. Nondurables include: Textile mill
products, apparel products, leather and leather products, printing and publishing, chemicals and chemical products, petroleum products, rubber and plastic products, food, and tobacco products. Manufacturing accounted for about
22 percent of GNP in 1989.
Nonfinancial corporate output is equal to GNP in constant 1982 dollars,
less the rest-of-the-world sector, general government, output of nonprofit institutions, output of paid employees of private households, rental value of
owner-occupied dwellings, unincorporated business, the output of corporations
engaged in banking, finance, stock and commodity trading, and credit and insurance agencies, and the statistical discrepancy in computing the NIPA. Nonfinancial corporations accounted for about 60 percent of GNP in 1989.
PRODUCTIVITY:
These productivity measures describe the relationship between
real output 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 at work 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; managerial skill; and the characteristics and effort
of the work force.
Table 1. Business sector: Productivity, hourly compensation, unit labor
adjusted
Real
Output
Hours
Compensa~
compensaOutput per
Year
of
all
tion
per
hour
of
tion per
and
hour (1)
persons
all persons
quarter
hour (2)
cost, and prices, seasonally
Unit
labor
cost
Unit nonlabor payments (3)
Implicit
price
deflator (4)
Indexes 1982*100
I
II
III
IV
1989
ANNUAL
I
II
III
1990
rl!3.0
rl!3.0
rll2.6
rill. 9
135.6
135.9
136,1
135.5
r!20.0
r 12 0.2
r!20.9
r 12 1.0
rl31.8
r!32.7
r 133.1
r!33.8
r!04.3
r!03.5
rl03.1
r!02.6
116.7
117.4
118.2
rl!9.5
r!30.9
rl33.3
r!33.9
r!34.5
121.2
122.5
123.3
124.3
r!12 . 6
135,8
r!20.5
r!32.9
r!03.4
rl!7.9
133.1
122.8
rill. 7
rill. 9
112.4
136.0
13*. 4
136.9
r 12 1.7
r!21.9
121.8
rl35.3
r!37.0
138.5
rl01.7
r!02.1
101.7
121,1
r!22,5
123.3
135.5
137.0
138.2
125.8
r!27.2
128.1
Percent change from previous quarter at annual rate (5)
I
II
III
IV
r-0.5
rO.l
r-1.6
r-2.3
3.5
0.9
0.6
-1.8
r4.0
rO.8
r2.2
rO.4
r3.3
r2.6
rl.l
r2.2
r-2.0
r-3.2
r-1.7
r-1.8
r3.8
2.5
2.8
4.6
rl.9
7.7
1.8
ri.7
3.1
4.3
2.5
3.5
ANNUAL
r-0.5
2.1
r2.6
r3.3
r-1.5
r3.8
r4.1
3.9
1.4
rl.2
1.5
r2.3
rO.5
-0,4
r4.5
r5.4
4.4
r-3.3
rl.6
-1.9
r5.4
r4.7
2.5
r3 . 1
r4.5
3.4
1989
I
II
III
1990
r-0.9
rO . 6
1.9
4*6
r4.6
2.8
Percent change from corresponding quarter of previous^ ^ear
I
II
III
IV
r-0.2
rO.l
r-0.9
r-1.1
3.4
2.5
1.7
0.8
r3.6
r2.3
r2.7
rl.9
r4.4
r3.7
r2.6
r2.3
r-0.4
r-1.4
r-2.0
r-2.2
r4.6
r3.€
r3.5
r3.4
r4.0
r5.5
r4.0
r3.2
4.4
4.2
3.7
3.4
ANNUAL
r-0.5
2.1
r2.6
r3.3
r-1.5
r3.8
r4.1
3.9
I
II
III
-1.2r-1.0
-0.2
0.3
rO.3
0.6
rl.4
rl.4
0.7
r2.€
r3.3
4.1
r-2.5
r-1.3
-1.4
3.8
r4.4
4.3
3*6
2.8
3.2
3.7
3.6
3.9
1989
1990
See footnotes following table 6.
r*revised
November 6, 1990
Source: Bureau of Labor Statistics
Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor cost, and prices,
seasonally adjusted
Real
compensaUnit
Hours
Implicit
Unit nonCompensaOutput
Year
Output per
labor pay- price
tion per
tion per
labor
of all
and
hour of
persons
deflator(4)
ments (3)
hour (1)
hour (2)
cost
quarter
all persons
Indexes 1982=100
1989
1990
I
II
III
IV
rl!2.1
rl!2.0
rill. 7
rlll.O
136.4
136.8
137.1
136,3
r!21.7
r!22.2
r!22.7
r!22.8
r!31.0
r!31.6
r!32.1
r!32.9
r!03.7
r!02.6
r!02.3
rl01.9
116.9
117.5
118.3
rl!9.7
r!31.0
r!34.0
r!34.8
r!35.4
121.4
122.7
123.5
124.7
ANNUAL
rill. 7
136.7
r!22.3
r!31.9
r!02.7
118.1
r!33.8
123.0
rllO.7
rllO.7
111.2
136.8
r!37.2
137.7
r!23.7
r!23.9
123.9
r!34.2
r!35.8
137.3
rlOO.9
rl01.2
100.8
121.3
r!22.7
123.5
135.7
137.5
138.6
125.8
127.3
128.3
I
II
III
Percent
1989
1990
change from previous quarter at annual rate (5)
I
II
III
IV
r-2.7
r-0.3
r-1.0
r-2.5
1.2
1.3
0.6
-2.1
r4.0
rl.6
rl.6
rO.5
r3.3
rl.7
rl.6
r2.3
r-2.0
r-4.1
r-1.2
r-1.6
56.1
2.0
r2.6
r5.0
r-3.3
9.3
2.6
rl.7
2.8
4.4
2.6
3.9
ANNUAL
r-0.7
2.0
r2.7
r3.2
r-1.5
r3.9
r3.9
3.9
r3.9
r5.0
4.5
r-3.8
rl.2
-1,8
r5.3
r4.7
2.8
rl.O
r5.2
3.5
3.8
r4.8
3.0
I
II
III
r-1.3
rO.3
1.6
1.4
rl.2
1.5
r2.8
rO.9
-0.1
Percent change from corresponding quarter of previous year
1989
1990
I
II
III
IV
r-0.1
rO.O
r-1.0
r-1.6
3.6
2.6
1.7
0.3
r3.7
r2.6
r2.7
rl.9
r4.4
r3.5
r2.6
r2.2
r-0.4
r-1.6
r-2.0
r-2.2
r4.5
r3.6
r3.6
r3.9
r3.3
r5.3
r4.7
r2.5
4.1
4.1
3.9
3.4
ANNUAL
r-0.7
2.0
r2.7
r3.2
r-1.5
r3.9
r3.9
3.9
I
II
III
r-1.3
r-1.1
-0.5
0,3
rO.3
0.5
rl.6
rl.4
1.0
r2.4
r3.2
3.9
r-2.7
r-1.4
-1.5
3.7
r4.4
4.4
3.6
r2.6
2.8
3.7
r3.8
3.9
See footnotes following table 6.
r-revised
November 6, 1990
Source: Bureau of Labor Statistics
Table 3. Manufacturing
seasonally adjusted
Year and
quarter
sector: Productivity, hourly compensation, and unit labor cost,
Output per
hour
of all persons
Output
(6)
Hours
of all
persons
Compensation per
hour(l)
Real
compensation per
hour (2)
Unit
labor
cost
Indexes 1982*100
1989
1990
I
II
III
IV
r!30.2
r!31.4
rlSl.l
r 13 1.9
143.7
144.5
144.0
143.5
rllO.4
rllO.O
rl09.9
r!08.8
rl26.7
r!27.1
r!28.2
r!28.9
100.2
r99.1
r99.3
r98.9
97.3
96.7
97.8
97.8
ANNUAL
r!31.1
144.0
r!09.8
r!27.7
r99.4
97.4
I
II
III
r!33.5
r!34.5
136.3
144.2
r!45.7
147.0
rl08.0
r!08.3
107.8
r!29.7
131.2
132.4
r97.5
97.8
97.1
97.1
r97.5
97.1
Percent change from previous quarter at annual rate (5)
1989
1990
r2.4
-2.5
4.6
-0.1
I
II
III
IV
r2.7
r3.9
r-1.0
r2.5
3.1
2.4
-1.4
-1-3
rO-3
r-1.4
r-0.4
r-3.7
r5.2
rl.3
r3.6
r2.4
r-0.2
r-4.5
rO.7
r-1.6
ANNUAL
r2.6
2.9
rO.3
r3.9
r-0.9
rl.3
I
II
III
r4.9
r3.1
5.6
1.8
r4.3
3.6
r-2.9
rl.2
-1.9
r2.'3
r4.7
3.7
r-5.4
rl.O
-2.6
-2.5
rl.6
-1.7
,
Percent change from corresponding quarter of previous year
1989
1990
I
II
III
IV
r3.1
r3.2
rl.7
r2.0
4.9
4.1
2.1
0.7
rl.8
rO.8
rO.4
r-1.3
r4.6
r4.1
r3.7
r3.1
r-0.2
r-1.1
r-0.9
r-1.4
rl.4
rO.8
r2.0
rl.l
ANNUAL
r2.6
2.9
rO.3
r3.9
r-0.9
rl.3
I
II
III
r2.5
r2.4
4.0
0.4
rO.8
2.1
r-2.1
r-1.5
-1.9
r2.4
r3.2
3.3
r-2.7
r-1.3
-2.1
-0.2
rO.9
-0.7
See footnotes following table 6.
r*revised
November 6, 1990
Source: Bureau of Labor Statistics
Table 4. Durable 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
hour (1)
Real
compensation per
hour (2)
Unit
labor
cost
Indexes 1982=100
I
II
III
IV
r!42.6
r!45.0
r!44.9
r!44.9
159.7
160.8
160.2
158.5
rl!2.0
rllO.9
rllO.5
r!09.3
r!25.3
r!25.7
r!27.0
r!27.6
r99.2
r98.0
r98.4
r97.9
87.9
86.7
87.6
88.0
ANNUAL
r!44.4
159.8
rllO.7
r!26.4
r98.4
87.5
I
II
III
r!46.7
r!49.0
151.7
159.1
rl61.9
163.6
108.5
rl08.7
107.9
r!28.1
r!29.5
130.9
96.3
r96.5
96.0
87.3
r86.9
86.3
1989
1990
Percent change from previous quarter at annual rate (5)
I
II
III
IV
r2.1
r6.9
r-0.2
rO.O
2.2
2.8
-1.7
-4.1
rO.l
r-3.8
r-1.5
r-4.1
r6.2
rl.2
r4.3
rl.8
rO.8
r-4.5
rl.4
r-2.1
r4.1
-5.3
4.5
1.8
ANNUAL
r3.0
3.1
rO.O
r4.1
r-0.7
rl.l
I
II
III
r4.8
r6.6
7.3
1.6
r7.3
4.2
r-3.1
rO.7
-2.9
rl.5
r4.4
4.3
r-6.1
rO.7
-2.0
-3.1
r-2.0
-2.8
1989
1990
Percent change from corresponding quarter of previous year
1989
I
II
III
IV
r3.0
r3.8
r2.8
r2.1
5.9
4.5
2.3
-0.2
r2.8
rO.6
r-0.4
r-2.3
r4.0
r4.4
r4.4
r3.4
r-0.7
r-0.8
r-0.3
r-1.1
rl.O
rO.5
rl.6
rl.2
ANNUAL
r3.0
3.1
rO.O
r4.1
r-0.7
rl.l
I
II
III
r2.8
r2.7
4.6
-0.4
rO.7
2.2
r-3.1
r-2.0
-2.4
r2.2
r3.0
3.0
r-2.9
r-1.6
-2.4
-0.6
rO.3
-1.5
1990
See footnotes following table 6.
r«*revised
November 6, 1990
Source: Bureau of Labor Statistics
10
Table 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
hourU)
Real
compensation per
hour (2)
Unit
labor
cost
Indexes 1982-100
I
II
III
IV
rl-13.1
r!13.Q
rl!2.4
rl!4.4
122.3
122.8
122.5
123.7
rioe.i
r!08.7
r!09.0
rlOS.l
r!28.5
r!29.1
r!30.0
r!3i.l
rl01,7
rlOO.7
rlOO.6
rlOO.5
113.6
114.3
115.6
114.6
ANNUAL
rl!3.2
122.8
rlOS.5
r!29.6
rlOO.9
114.5
I
II
III
rl!5.8
rllS.l
115.9
124.3
124.2
124.9
r!07.4
r!07.9
r!32.2
r!34.0
r99.4
r99.9
rl!6.4
107.8
135.0
99.0
116.4
1989
1990
114.2
Percent change from previous quarter at annual rate (5)
I
II
III
IV
r3.9
r-0.5
r-2.1
7.1
4.7
1.8
-1.0
3.7
rO.7
r2.3
rl.l
-3.2
r3.6
rl.9
r2.6
3.4
r-1.7
r-3.9
r-0.3
-0.6
r-0.3
2.4
r4.8
-3.4
ANNUAL
rl.9
2.7
rO.8
r3.7
r-1.1
rl.7
I
II
III
r5.2
r-2.4
2,9
-0.6
2.3
r-2.7
rl.8
-0.4
r3.6
5.4
3.0
r»4.1
1.6
-3.2
-1.5
r8.0
0.1
1989
1990
2.5
Percent change from corresponding quarter of previous year
I
II
III
IV
r3.0
r2.2
rO.2
r2.1
3.4
3.4
1.8
2.3
ANNUAL
rl.9
r2.3
rl.9
3.1
1989
1990
I
II
III
See footnotes following table 6
r-revised
rO.3
rl-2
rl.5
rO.2
r5.2
r3.€
r2.9
r2 . 9
rO.4
r-1.5
r-1.7
r-1.6
r2.1
rl.4
r2.6
rO.6
2.7
rO.8
r3.7
r-1.1
rl.7
1.7
1.1
1.9
r-0.7
r-0.8
-1.1
r2.9
3,7
3.8
r-2.2
-0.9
-1.6
0.5
rl.9
0.7
November 6, 1990
Source: Bureau of Labor Statistic*
11
Table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor cost, unit profits.
and prices, seasonally adjusted
Year
and
quarter
Output
per allemployee
hour
Output
Real
Employee Hourly
hours compensa- hourly
compention
sation (2)
(1)
Unit
labor
cost
Unit
nonlabor
cost (7)
Total
unit
cost
(8)
Unit
profits
(9)
Implicit
price
deflator
(4)
Indexes 1982=100
1989
1990
I
II
III
IV
rill. 9
rill. 6
rill. 8
rllO.5
136.2
136.4
137.1
135.9
r!21.7
r!22.2
r!22.7
r!23.0
r!28,3
r!28.8
r!29.3
r!30.0
rlOl.5
rlOO.5
rlOO.2
r99.7
114.6
115.4
115.7
117.6
108.0
110.6
113.3
115.2
112.7
114.1
115.0
117.0
162.3
162.9
159.3
147.2
115.9
117.1
117.8
118.9
ANNUAL
rill. 6
136.4
r!22.2
r!29.3
rlOO.6
115.8
111.8
114.7
157.9
117.4
rllO.l
rllO.6
136.0
r!36.9
r!23.5
r!23.8
r!30.9
r!33.0
r98.4
r99.1
118.9
r!20.2
116.2
rl!6.2
118.1
rl!9.1
147.6
r!53.9
120.0
121.3
I
II
Percent change from previous quarter at annual rate (5)
1989
1990
I
II
III
IV
r-3.6
r-1.1
rO.6
r-4.6
-0.1
0.6
2.1
-3.6
r3.6
rl.7
rl.5
rl.l
r4.6
rl.8
rl.6
rl.9
r-0.8
r-4.0
r-1.2
r-2.0
r8.4
2,8
1.0
6.9
r2.6
9.9
10.2
6.9
6.8
4.7
3.5
6.9
-32.5
1.5
-8.5
-27.1
2.4
4.4
2.4
3.6
ANNUAL
r-1.6
1.1
r2.8
r3.3
r-1.5
r5.0
r5.9
5.3
-10.4
3.7
I
II
r-1.5
rl.9
0.2
r2.8
rl.8
rO.9
r2.8
r6.6
r-4.9
r2.8
4.4
r4.6
3.3
rO.2
4.1
r3.4
1.2
r!8.2
3.9
4.5
Percent change from corresponding quarter of previous year
1989
1990
2.3
1.4
1.3
-0.3
r3.8
r3.1
r2.7
r2.0
r4.4
r3.5
r2.7
r2.5
r-0.4
r-1.6
r-1.9
r-2.0
r6.0
r5.3
r4.1
r4.8
r3.6
r5.7
r6.9
r7.4
5.3
5.4
4.9
5.5
-8.1
-8.5
-7.0
-17.8
4.0
4.0
3.8
3.2
r-1.6
1.1
r2.8
r3.3
r-1.5
r5.0
r5.9
5.3
-10.4
3.7
r-1.7
-1.0
-0.2
rO.4
rl.5
rl.3
r2.0
r3.2
r-3.0
r-1.4
3.8
r4.2
7.6
r5.1
4.8
r4.4
-9.0
r-5.5
3.6
3.6
I
II
III
IV
r-1.5
r-1.7
r-1.4
r-2.2
ANNUAL
I
II
See footnotes following table 6.
r*revised
November 6, 1990
Source: Bureau of Labor Statistics
12
SOURCE: Output data from the 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. The measures are first published 30
days after the close of the reference period; revisions appear 30 days later,
and third revisions after an additional 60 days. In the business sector, the
probability is 0.95 that the third publication (third revision) of a quarterly
index of output per hour of all persons will differ from the initial value by
between -1.8 and +2.1 index points. This interval is based on the performance
of this measure between the second quarter of 1976 and the third quarter of
1989.
Footnotes/ Tables 1-6
(1)
Wages and salaries of 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
estimate of wages, salaries, and supplemental payments for the selfemployed.
(2) Compensation per hour adjusted for changes in the Consumer Price Index
for All Urban Consumers.
(3) Unit nonlabor payments include profits/capital consumption allowances,
interest, rental income of persons, and indirect taxes.
(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. For nonfinancial
corporations, rental income of persons is zero by definition.
(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.
13
Appendix 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
Compensation per
hour <1)
Real
compensation per
hour (2)
Unit
labor
cost
Unit nonImplicit
labor payprice
ments (3) deflator(4)
Indexes 1982-100
1987
1988
I
II
III
IV
109.5
110.3
111.1
112.0
123.5
125.4
127.2
129.4
112.8
113.7
114.5
115,6
121.5
122.0
123.2
125.5
104.7
104.0
104.0
105.0
111.0
110.6
110.9
112.1
119.5
122.7
124.5
123.2
113,7
114.5
115.3
115.7
ANNUAL
110.7
126.4
114.1
123.1
104.5
111.2
122.5
•114.8
I
II
III
IV
113.2
112.9
113.6
113.1
131.2
132.6
133.8
134.5
115.8
117.5
117.8
118.8
126.3
127.9
129.7
130.8
104. 7
104.9
105.1
104.9
111.5
113.3
114.2
115.6
125.8
126.4
128.8
130.2
116.2
117.5
118.9
120.3
ANNUAL
113.2
133.0
117.5
128.6
104.9
113.7
127.9
118.2
I
II
III
IV
0.2
3.1
2.8
3.2
4.3
6.1
5.8
7.2
4.1
3.0
2.9
3.8
2.3
1.7
4.1
7.6
-3.1
-2.7
0.1
3.7
2.1
-1.3
1.2
4.3
5.4
11.2
6.2
-4.3
3.2
2.8
2.9
1.2
ANNUAL
1.1
4.1
3.0
3.7
0.1
2.6
3.0
2.7
I
II
III
IV
4.6
-1.1
2.5
-1.6
5.7
4.6
3.5
2.0
1.0
5.8
1.0
3.6
2.5
5.3
5.6
3.4
-0.9
0.8
0.6
-0.9
-2.0
6.5
3.1
.. 5.0
9.0
1.7
7.7
4.7
1.7
4.8
. 4.7
4.9
ANNUAL
2.2
5.3
3.0
4.5
0.4
2.2
4.4
3.0
Percent change from previous quarter at annual rate (5)
1987
1988
Percent change from corresponding quarter of previous year
1987
1988
I
II
III
IV
-0.3
0.6
1.8
2.3
1.8
3.8
5.1
5.8
2.2
3.2
3.2
3.4
4.1
3.4
3.4
3.9
1.9
-0.4
-0.8
-0,5
4.5
2.8
1.6
1.5
0.0
3.2
4.1
4.5
2.9
2.9
2.5
2.5
ANNUAL
1.1
4.1
3.0
3.7
0.1
2.6
3.0
2.7
I
II
III
IV
3.4
2.4
2.3
1.1
6.2
5.8
5.2
3.9
2.7
3.4
2.9
2.8
4.0
4.9
5.2
4.2
0.0
0.9
1.1
-0.1
0.5
2.4
2.9
3.1
5.3
3.0
3.4
5.7
2.2
2.6
3.1
4.0
ANNUAL
2.2
5.3
3.0
4.5
0.4
2.2
4.4
3.0
See footnotes following table 6.
November 6, 1990
Source: Bureau of Labor Statistics
14
Appendix table 2.
Wonfarm 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
compensation per
hour(2)
Unit
labor
cost
120.8
121.4
122.6
124.8
104.1
103.4
103.5
104.4
111.4
110.9
111.3
112.6
120.8
123.7
125.6
124.2
114.4
114.9
115.8
116.2
Compensation per
hour Ml
Unit nonlabor payments (3)
Implicit
price
deflator(4)
Indexes 1982-100
1987
1986
I
II
III
IV
106.4
109.5
110.1
110.9
123.8
125.9
127.6
129.7
114.2
115.0
115.9
117.0
ANNUAL
109.8
126.8
115.5
122.4
104.0
111.6
123.6
115.3
104.1
104.3
104.4
104.2
111.9
113.5
114.2
115.2
126.9
127.2
128.8
132.1
116.6
117.8
118.8
120.5
104.3
113.7
128.8
118.4
I
II
III
IV
ANNUAL
112.2
112.0
112.8
112.9
131.6
133.4
134.8
136.0
117.3
119.1
119.5
120.5
125.5
127/1
128.8
130.0
112.5
134.0
119.1
127.8
Percitnt change from previous quarter at annual rate (5)
1987
1988
I
II
III
IV
0.0
3.9
2.4
2.8
4.7
6.7
5.6
6.9
4.7
2.8
3.1
4.0
1.8
1.8
4.1
7.4
-3.6
-2.7
0.1
3.5
1.7
-2.0
1.6
4.5
6.9
10.2
6.1
-4.5
3.4
1.9
2.7
s.r
1.4
ANNUAL
1.0
4.2
3.2
3.6
-0.1
2.5
3.0
I
II
III
IV
4.7
-0.5
2.8
0.2
5.9
5.6
4.1
3.6
1.1
6.1
1.3
3.4
2.4
5.1
5.3
3.8
-1.0
0.7
0.4
-0.5
-2.2
5.7
2.5
3.6
9.0
1.1
5.1
10.6
1.4
4.1
3.4
5.9
ANNUAL
2.5
5.7
3.1
4.4
0.3
1.9
4.2
2.7
Percent change from correspond ing quarter of previous year
1987
1988
-0.6
0.6
1.7
2.3
1.8
3.9
5.2
6.0
2.5
3.4
3.4
3.6
3.9
3.3
3.3
3-7
1.7
-0.6
-0.9
-0.7
4.5
2.7
1.5
1.4
0.1
3.1
4.1
4.5
3.0
2.9
2.4
2.5
ANNUAL
1.0
4.2
3.2
3.6
-0.1
2.5
3.0
2.7
I
II
III
IV
3.5
2.4
2.4
1.8
6.3
6.0
5,6
4.8
2.8
3.6
3.1
3.0
3.9
4.7
5.1
4.2
0.0
0.8
0.9
-0.1
0.4
2.3
2.6
2.3
5.0
2.8
2.6
6.4
2.0
2.5
2.6
3.7
ANNUAL
2.5
5.7
3.1
4.4
0.3
1.9
4.2
2.7
I
II
III
IV
See footnotes following table 6.
November 6, 1990
Source: Bureau of Labor Statistics
15
Appendix table 3.
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
hour{l)
Real
compensation per
hour (2)
Unit
labor
cost
Indexes 1982-100
1987
1988
I
II
III
IV
122.7
124.6
125.2
125.6
129.2
131.2
133.2
135.5
105.3
105.3
106.4
107.9
118.5
118.3
118.8
119.9
102.2
100.8
.100.3
100.3
96.6
94.9
94.9
95.5
ANNUAL
124.5
132.3
106.2
118.9
101.0
95.5
I
II
III
IV
126.2
127.3
128.8
129.3
136.9
138.9
141.1
142.6
108.5
109.1
109.5
110.3
121.1
122.1
123.6
125.0
100.5
100.2
100.1
100.3
96.0
95.9
95.9
96.7
ANNUAL
127.8
139.9
109.4
122.9
100.2
96.1
•
Percent change from previous quarter at annual rate (5)
1987
1988
I
II
III
IV
3.0
6.5
1.9
1.3
3.2
6.6
6.2
6.9
0.2
0.1
4.2
5.6
2.1
-1.0
2.0
3.7
-3.2
-5.3
-1.9
0.0
-0.8
-7.0
0.1
2.5
ANNUAL
3.6
4.3
0.7
2.3
-1.3
-1.2
4.1
3.2
4.8
4.9
0.6
-1.1
-0.1
0.6
2.0
-0.3
0.0
3.5
3.3
-0.8
0.7
I
II
III
IV
2.0
3.5
4.8
1.4
4.4
6.0
6.4
4.4
2.3
2.4
1.5
2.9
ANNUAL
2.6
5.7
3.0
Percent change from corresponding quarter of previous year
1987
1988
I
II
III
IV
3.0
4.2
3.9
3.1
2.2
4.1
5.2
5.7
-0.7
-0.1
1.3
2.5
3.4
2,4
1.9
1.7
1.1
-1.4
-2.3
-2.6
0.4
-1.7
-1.9
-1.4
ANNUAL
3.6
4.3
0.7
2.3
-1.3
-1.2
I
II
III
IV
2.9
2.2
2.9
2.9
6.0
5.8
5.9
5.3
3.0
3.6
2.9
2.3
2.2
3.3
4.0
4.3
-1.7
-0.6
-0.2
0.0
-0.7
1.1
1.0
1.3
ANNUAL
2.6
5.7
3.0
3.3
-0.8
0.7
See footnotes following table 6.
November 6, 1990
Source: Bureau of Labor
Statistics
16
Appendix table 4.
Durable 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
hour(l)
Real
compensation per
hour (2)
Unit
labor
cost
Indexes 1982-100
1987
1988
I
II
III
IV
133.9
136.4
136.4
137.5
141.5
143.6
145.3
149VO
105.7
105.3
106.5
108.4
118.5
117.9
118.2
119.1
102.2
100.5
99.8
99.6
88.5
86.4
86.6
86.6
ANNUAL
136.1
144.9
106.5
118.4
100.6
87.0
I
II
III
IV
138.5
139.7
141.1
141.9
150.8
154.0
156.6
158.9
108.9
110.2
111.0
112.0
120.5
120.5
121.7
123.4
99.9
98.8
96.6
99.0
87.0
86.2
86.3
87vO
ANNUAL
140.2
155.1
110.6
121.4
99.0
86.6
Percent change from previous quarter at annual rate (5)
1987
1988
I
II
III
IV
3.7
7.7
0.0
3.0
3.0
6.0
4.8
10,5
-0.7
-1.6
4.7
7.2
2.6
-2.0
1.0
2.9
-2.8
-6.4
-2.8
-0.9
-1.1
-9.1
1.0
-0.2
ANNUAL
4.2
4.0
-0.2
2.2
-1.4
-1.9
I
II
III
IV
2.9
3.5
'4.0
2.4
5.1
8.5
6.9
6.0
2.1
4.8
2.8
3.5
4.6
-0.1
4.2
5.8
1.4
-4.3
-0.7
1.4
1.8
-3.5
0.2
3.3
ANNUAL
3.0
7.0
3.9
2.5
-1.6
-0.5
Percent change from corresponding quarter of previous year
1987
1988
I
II
III
IV
3.8
5.4
4.1
3.6
1.7
3.8
4.4
6.0
-2.1
-1.4
0.4
2.3
3.6
2.6
1.8
1.1
1.4
-1.2
-2.3
-3.2
-0.2
-2.6
-2.2
-2.4
ANNUAL
4.2
4.0
-0.2
2.2
-1.4
-1.9
I
II
III
IV
3.4
2.4
3.4
3.2
6.6
7.2
7.7
6.6
3.1
4.7
4.2
3.3
1.6
2.1
2.9
3.7
-2.2
-1.7
-1.2
-0.6
-1.7
-0.2
-0.4
0.4
ANNUAL
3.0
7.0
3.9
2.5
-1.6
-0.5
See footnotes following table 6.
November 6, 1990
Source: Bureau of Labor Statistics
17
Appendix table 5.
Nondurable manufacturing aector: 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
hour(l)
Real
compensation per
hour (2)
Unit
labor
cost
Indexes 1982-100
1987
1988
I
II
III
IV
107.6
108.9
110.2
109.6
112.7
114.7
117.1
117.5
104.7
105.4
106.3
107.1
118.4
118.8
119.9
121.3
102.1
101.3
101.2
101.4
110.1
109.1
108.8
110.6
ANNUAL
109.1
115.5
105.9
119.6
101.6
109.6
I
II
III
IV
109.8
110.6
112.2
112.1
118.3
118.8
120.4
120.9
107.8
107.5
107.4
107.9
122.1
124.6
126.3
127.4
101.3
102.2
102.4
102.2
111.2
112.7
112.6
113.7
ANNUAL
111.1
119.6
107.7
125.0
102.0
112.6
Percent change from previous quarter at annual rate (5)
1987
1988
I
II
III
IV
1.9
4.9
4.9
-2.0
3.6
7.6
8.5
1.2
1.6
2.6
3.4
3.3
1.6
1.3
3.5
4.8
-3.7
-3.1
-0.4
1.0
-0.3
-3.4
-1.4
7.0
ANNUAL
2.7
4.9
2.1
2.8
-0.9
0.0
I
II
III
IV
0.5
2.9
5.9
-0.4
3.1
1.7
5.4
1.7
2.5
-1.2
-0.4
2.1
2.8
8.5
5.6
3.3
-0.6
3.9
0.6
-1.0
2.2
5.4
-0.2
3.7
ANNUAL
1.8
3.6
1.8
4.5
0.4
2.7
Percent change from corresponding quarter of previous year
1987
1988
I
II
III
IV
1.9
2.7
3.7
2.4
3.2
4.7
6.5
5.2
1.3
1.9
2.7
2.7
3.4
2.5
2.2
« 2.8
1.1
-1.4
-1.9
-1.6
1.5
-0.2
-1.5
0.4
ANNUAL
2.7
4.9
2.1
2.8
-0.9
0.0
I
II
III
IV
2.0
1.6
1.8
2.2
5.0
3.6
2.8
2.9
2.9
2.0
1.0
0.7
3.1
4.9
5.4
.5.0
-0.8
1.0
1.2
0.7
1.0
3.3
3.6
2.8
ANNUAL
1.8
3.6
1.8
4.5
0.4
2.7
See footnotes following table 6.
November 6, 1990
Source: Bureau of Labor Statistics
18
Appendix 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 (7)
Total
unit
cost
(8)
Unit
profits
(9)
Implicit
price
deflator
(4)
Indexes 1982-100
I
II
III
IV
110.6
111.6
112.3
112.6
125.4
127.6
129.7
131.3
113.4
114.3
115.5
116.6
118.7
119.2
120.5
122.3
102.3
101.6
101.7
102.3
107.4
106.9
107.3
108.6
103.2
102.8
102.4
102.2
106.2
105.8
105.9
106.8
157.5
171.4
181.0
174.0
109.4
109.9
110.6
111.0
ANNUAL
111.9
128.5
114.8
120.4
102.2
107.5
102.7
106.2
171.1
110.2
I
II
III
IV
113.6
113.6
113.4
113.0
133.2
134.6
135.4
136.3
117.2
118.5
119.4
120.6
122.9
124.4
125.9
126.9
101.9
102.1
102.1
101.7
108.1
109.6
111.1
112.3
104.2
104,6
106.0
107.3
107.1
108.2
109.7
110.9
176.6
178.1
171.4
179.1
111.4
112.6
113.5
115.2
ANNUAL
113.5
134.9
118.8
125.2
102.1
110,3
105.5
109.0
176.3
113.2
1987
1988
Percent change from previous quarter at annual rate (5)
I
II
III
IV
2.0
3.5
2.7
1.0
6.9
7.0
7.0
4.8
4.8
3.3
4.1
3.8
1.1
1.7
4.2
6.1
-4.2
-2.7
0.3
2.2
-0.9
-1.7
1.5
5.0
-3.7
-1.3
-1.5
-0.9
-1.6
-1.6
0.6
3.4
11.1
40.3
24.4
-14.5
-0.6
1.7
2.8
1.4
ANNUAL
2.4
5.3
2.9
3.2
-0.4
0.8
-0.3
0.5
9.1
1.2
I
II
III
IV
3.7
-0.2
-0.8
-1.4
6.0
4.3
2.4
2.6
2.2
4.5
3.2
4.0
2.0
5.1
4.9
2.9
-1.3
0.7
0.0
-1.3
-1.6
5.3
5.7
4.4
8.2
1.5
5.2
5.2
0.9
4.3
5.6
4.6
6.0
3.4
-14.2
19.2
1.4
4.2
3.5
5.9
ANNUAL
1.4
5.0
3.5
4.0
-0.1
2.6
2.8
2.6
3.0
2.7
1987
1988
Percent change from corresponding quarter of previous year
1987
I
II
III
IV
1.6
2.5
3.2
2.3
3.0
5.2
6.8
6.4
1.4
2.7
3.5
4.0
3.5
2.9
3.0
3.3
1.3
-0.9
-1.2
-1.1
1.9
0.4
-0.2
0.9
1.7
1.0
-2.0
-1.9
1.9
0.6
-0.7
0.2
-2.5
9.4
16.2
13.5
1.4
1.4
0.8
1.3
ANNUAL
2.4
5.3
2.9
3.2
-0.4
0.8
-0.3
0.5
9.1
1,2
I
II
III
IV
2.7
1.8
0.9
0.3
6.2
5.5
4.4
3.8
3.4
3.6
3.4
3.5
3.5
4.4
4.5
3.7
-0.4
0.4
0.4
-0.5
0.7
2.5
3.6
3.4
1.0
1.8
3.4
5.0
0.8
2.3
3.5
3.8
12.1
3.9
-5.3
2.9
1.8
2.5
2.6
3.7
ANNUAL
1.4
5.0
3.5
4.0
-0.1
2.6
2.6
2.6
3.0
2.7
1988
See footnotes following table 6.
November 6, 1990
Source: Bureau of Labor Statistics
@FedFRASER