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Historical, technical information: (202) 606-5606 Current data: (202) 606-7828 Media contact: (202) 606-5902 USDL 94-549 Transmission of this material is embargoed until 10:00 A.M. EST Wednesday, November 9, 1994. PRODUCTIVITY AND COSTS Third Quarter 1994 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 third quarter of 1994. The preliminary seasonally-adjusted annual rates of productivity growth in the third quarter were: 3.1 percent in the business sector, and 2.7 percent in the nonfarm business sector. In both the business and the nonfarm business sectors, productivity increased in the third quarter after having fallen in the second quarter. In manufacturing, productivity increases in the third quarter were: 5.3 percent in manufacturing, 6.4 percent in durable goods manufacturing, and 3.3 percent in nondurable goods manufacturing. The third-quarter increase in productivity in the manufacturing sector was slightly lower than that recorded in the second quarter. In the nondurable goods sector, third-quarter growth was less than half what it had been in the previous quarter. In the larger durable goods sector, however, productivity growth accelerated in the third quarter. Manufacturing includes nearly 20 percent of U.S. business sector employment. Third-quarter measures are summarized in table A and appear in detail in tables 1 through 5. Output measures for business and nonfarm business are based on measures of gross domestic product prepared by the Bureau of Economic Analysis of the U.S. Department of Commerce. Quarterly output measures for manufacturing reflect independent indexes of industrial production prepared by the Board of Governors of the Federal Reserve System. See Technical Notes for further information on data sources (page 7). 2 Table A. Productivity and costs: Preliminary third-quarter 1994 measures (Seasonally adjusted annual rates) Sector Productivity Output Hours Hourly compensation Real hourly compensation Unit labor costs Percent change from preceding quarter Business Nonfarm business Manufacturing Durable Nondurable 3.1 2.7 5.3 6.4 3.3 4.0 3.9 7.1 9.1 4.1 0.8 1.2 1.7 2.5 0.7 3.3 2.9 3.1 2.9 3.2 -0.3 -0.7 -0.5 -0.7 -0.3 0.2 0.1 -2.1 -3.3 -0.1 Percent change from same quarter a year ago Business Nonfarm business Manufacturing Durable Nondurable 2.4 2.1 6.4 7.9 4.2 5.4 5.1 7.8 10.0 4.5 3.0 2.9 1.3 2.0 0.3 3.0 3.0 2.4 2.3 2.3 0.2 0.1 -0.5 -0.5 -0.5 0.6 0.9 -3.8 -5.2 -1.8 Business From the second quarter to the third quarter of 1994, business sector productivity increased at a 3.1 percent annual rate. Output rose 4.0 percent, and hours of all persons engaged in the sector increased 0.8 percent (seasonally adjusted annual rates). The hours increase reflected an employment gain of 2.7 percent and a decline in average weekly hours worked of 1.8 percent. After revisions, second-quarter productivity declined 2.0 percent, as output and hours rose by 3.7 and 5.9 percent, respectively (tables B and 1). Hourly compensation increased 3.3 percent during the third quarter of 1994, compared with a 0.2 percent rise in the second 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 0.2 percent annual rate during the third quarter. During the previous quarter, these costs had increased 2.3 percent. Real hourly compensation, which takes into account changes in the Consumer Price Index for All Urban Consumers (CPI-U), decreased 0.3 percent in the third quarter; it had fallen 2.5 percent in the second quarter of 1994. 3 The implicit price deflator for the business sector, which reflects changes in unit labor costs and unit nonlabor payments, increased at a 1.6 percent annual rate in the third quarter, compared with a 3.5 percent increase during the second quarter of 1994. Nonfarm business Productivity rose 2.7 percent in the nonfarm business sector during the third quarter of 1994 as output rose 3.9 percent and hours of all persons increased 1.2 percent. During the second quarter of 1994, productivity had fallen 2.1 percent (as revised) in the nonfarm business sector, reflecting gains of 3.2 percent in output and 5.5 percent in hours (table 2). Hourly compensation increased at a 2.9 percent annual rate in the third quarter, compared with a 0.7 percent increase one quarter earlier. When the rise in the CPI-U is taken into account, real hourly compensation fell at a 0.7 percent annual rate in the third quarter. This marks the fifth such decline in the last seven quarters and the second consecutive quarter in which real hourly compensation fell. Unit labor costs increased 0.1 percent, compared with a 2.9 percent rise during the second quarter of 1994. The implicit price deflator for nonfarm business output rose 1.9 percent in the third quarter, compared with a 4.5 percent rise one quarter earlier. Manufacturing Productivity increased 5.3 percent in manufacturing in the third quarter of 1994, as output rose 7.1 percent and hours of all persons rose 1.7 percent (seasonally adjusted annual rates). The hours increase reflected an increase in employment of 1.9 percent (the largest increase since 4.3 percent in the fourth quarter of 1987) and a decline in average weekly hours of 0.1 percent (the first decrease since the first quarter of 1991 when average weekly hours fell 2.5 percent). Productivity grew more in the durable goods industries than among nondurable goods producers. Output and hours rose in both the durable and the nondurable goods sectors, but the increases in the durable goods sector were higher (tables 3, 4, and 5). Employment increased by 2.8 percent in the durable goods sector and 0.7 percent in the nondurable goods sector. Average weekly hours were unchanged in the nondurable goods sector, but declined by 0.3 percent in the durable goods sector. Hourly compensation of all manufacturing workers increased 3.1 percent during the third quarter, compared with a 1.4 percent decline during the second quarter (seasonally adjusted annual rates). Real hourly compensation fell 0.5 percent in the third quarter when the increase in the CPI-U is taken into account. During the second quarter, real hourly compensation also had declined. Unit labor costs fell at a 2.1 percent annual rate in the third quarter of 1994. These costs had decreased 6.8 percent during the second quarter of 1994 and have now declined for four consecutive quarters. 4 Revised Measures Current and previous measures for the second quarter of 1994 for the business, nonfarm business, and manufacturing sectors are compared in table B. The quarterly movements differ from those reported on September 7 based on information then available. Table B. Previous and revised productivity and related measures Quarterly percent changes at seasonally adjusted annual rates Sector Productivity Output Hours Hourly compensation Real hourly compensation Unit labor costs Second quarter 1994 Business: Previous . . . . -2.7 Current . . . . .-2.0 2.9 3.7 5.8 5.9 0.3 0.2 -2.4 -2.5 3.2 2.3 Nonfarm business: Previous . . . . -2.5 Current . . . . .-2.1 2.7 3.2 5.4 5.5 0.8 0.7 -1.9 -2.0 3.4 2.9 Manufacturing: Previous. . . . . 4.5 Current . . . . . 5.7 6.1 7.3 1.5 1.5 -1.6 -1.4 -4.2 -4.1 -5.8 -6.8 The productivity and cost measures also were revised to reflect the results of the 1993 Hours at Work Survey (HWS), which are now available. This survey is used to adjust the number of hours for which private nonfarm employees are paid, as reported in the BLS Current Establishment Survey, to hours at the workplace. For 1993, these new results show that hours of all persons increased slightly more than had originally been reported. In the business and nonfarm business sectors, hours were revised up by 0.1 percentage point-to increases of 2.2 percent in business and 2.5 percent in nonfarm business. In the manufacturing sector, hours of all persons were revised up by 0.3 percentage points, to a 0.8 percent rate of increase. 5 Revised measures: Nonfinancial Corporations Productivity and cost measures for the second quarter for nonfinancial corporations, which were revised to incorporate the most recent information, were somewhat different from the preliminary results announced on September 7. Productivity fell at an annual rate of 1.4 percent compared with the previously announced decline of 1.3 percent (table C). Table C. Nonfinancial corporations: Previous and revised productivity and related measures Quarterly percent changes at seasonally adjusted annual rates Period Productivity Output Hours Real Hourly hourly Unit compen- compen- labor sation sation costs Unit profits Implicit price deflator Second quarter 1994 Previous Current -1.3 -1.4 4.8 4.8 6.2 6.4 0.0 -0.1 -2.7 -2.7 1.4 1.4 22.1 20.7 1.8 1.8 Next release date The next release of Productivity and Costs is scheduled for 10:00 AM EST, Wednesday, December 7, 1994. Revised third-quarter measures will be released at that time. This release also will include revised productivity and output measures for the manufacturing sectors, incorporating both new gross product originating data for 1990-92, recently made available by the Bureau of Economic Analysis, U.S. Department of Commerce, and revised Indexes of Production from the Federal Reserve Board beginning in January 1991. 6 LABSTAT now on INTERNET! BLS Data Now Available on the INTERNET LABSTAT, the Bureau of Labor Statistics public database, provides current and historical data for many surveys as well as numerous press releases. LABSTAT on the Internet is composed of individual databases (in flat file format) corresponding to each of the surveys. Internet users should use Anonymous FTP to access BLS data: stats.bls.gov. Non-Internet users should use the limited dial-in service through a Bulletin Board Service to access BLS data; phone number (202) 606-7060. The major sector labor and multifactor productivity database containing productivity and costs measures is identified by the two-character survey names PR and MP. For each news release published by the BLS, the two current issues are stored in the */news.release directory. most If you have questions or comments regarding the LABSTAT system on the Internet, address e-mail to labstat.helpdesk@bls.gov. LABOR NEWS At Your Fingertips You can now get this and other U.S. Department of Labor news releases quickly and easily through LABOR NEWS-a free electronic bulletin board providing a variety of labor-related information and available to anyone with a computer, a modem, and communications software. To register directly, load the following parameters into your computer: PHONE number: BAUD speed: PARITY: DATA bits: STOP bit: (202) 219-4784 300, 1200, 2400, 9600, 14,400 none 8 1 After you have made a connection to LABOR NEWS, follow the registration prompts. Users must pay any toll for long-distance calls. For more information call (202) 219-8831, or FAX (202) 219-8699, Monday through Friday, 9 a.m. to 4 p.m. ET. 7 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 and unpaid family workers. Output: Business sector output is equal to gross domestic product (GDP) in constant 1987 dollars, less 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 are also made in labor inputs. Business output was about 78 percent of GDP in 1992. Nonfarm business, which also excludes farming, was about 77 percent of GDP in 1992. Total manufacturing measures are computed by summing series prepared for the durable and nondurable goods sectors. Durables include the following 2digit SIC industries: Primary metal industries; fabricated metal products; nonelectrical machinery; industrial and commercial machinery and computer equipment; electronic and other electrical equipment; transportation equipment; instruments; lumber and lumber products; furniture and fixtures; stone, clay, and glass and concrete products; and miscellaneous manufactures. Nondurables include: Food and kindred products, tobacco products, textile mill products, apparel products, paper and allied products, printing and publishing, chemicals and chemical products, petroleum refining and related industries, rubber and plastic products, leather and leather products. Manufacturing accounted for about 19 percent of GDP in 1992. Quarterly manufacturing output measures are based on the index of industrial production prepared monthly by the Board of Governors of the Federal Reserve System 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. 8 Nonfinancial corporate output is equal to GDP in constant 1987 dollars, less the 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 56 percent of GDP in 1992. 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. Information in this release will be made available to sensory-impaired individuals upon request. Voice phone: 202-606STAT; TDD phone: 202-606-5897; TDD message referral phone number: 1-800-326-2577. Table 1. Business sector: Productivity, hourly compensation, unit labor costs, and prices, seasonally adjusted Real Year Output per Hours CompensacompensaUnit Unit nonImplicit and hour of of all tion per tion per labor labor pay- price quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4) --------------------------------------------------------------------------------------------------------Indexes 1982=100 1992 1993 I II III IV 114.5 114.8 115.9 116.8 133.7 134.4 136.1 137.9 116.8 117.1 117.4 118.1 152.2 153.7 156.0 r157.7 105.9 r106.1 106.8 r107.1 133.0 133.9 134.7 135.1 148.4 148.8 145.8 150.2 138.0 138.8 138.3 140.1 ANNUAL 115.5 135.5 117.4 154.9 106.6 134.2 148.3 138.8 I II III IV r116.2 r116.4 r117.3 r119.0 138.1 139.6 140.9 143.9 r118.9 r119.9 r120.1 r121.0 r158.8 r160.0 r161.2 r162.1 r107.0 r107.0 r107.3 r107.2 136.6 137.5 137.4 136.3 149.5 149.6 r150.4 153.8 140.8 141.4 141.6 142.1 ANNUAL r117.2 140.6 r120.0 r160.5 r107.2 136.9 r150.9 141.5 1994 I r119.8 145.8 r121.7 r164.6 r108.3 137.4 r153.2 142.6 II r119.2 r147.2 r123.5 r164.7 r107.6 r138.2 r155.3 143.8 III 120.1 148.6 123.7 166.0 107.5 138.2 156.9 144.4 --------------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1992 1993 1994 I II III IV r5.5 r1.1 r3.7 r3.2 3.4 2.2 4.9 5.6 -1.9 1.1 r1.2 r2.3 5.8 4.0 r6.1 r4.4 3.1 0.7 3.0 r1.2 0.3 2.8 2.4 1.2 9.1 1.0 -7.7 r12.7 3.3 2.2 -1.3 5.1 ANNUAL 3.0 2.7 -0.3 5.1 2.0 2.1 2.3 2.2 I II III IV r-1.9 r0.6 r3.3 5.7 0.6 4.2 4.0 8.6 r2.5 r3.6 r0.7 2.8 r2.6 r3.1 r3.0 2.4 r-0.4 r0.0 r1.1 r-0.6 4.6 2.5 -0.3 -3.1 -2.0 0.3 2.1 9.4 2.3 1.7 0.6 1.2 ANNUAL r1.5 3.8 r2.2 r3.6 r0.6 r2.0 1.7 1.9 I II III 2.9 r-2.0 3.1 5.5 r3.7 4.0 r2.5 r5.9 0.8 r6.3 r0.2 3.3 r4.1 r-2.5 -0.3 3.3 r2.3 0.2 -1.7 r5.8 4.1 1.5 3.5 1.6 --------------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1992 1993 1994 I II III IV r2.8 2.5 3.1 3.4 1.7 2.0 3.0 4.0 r-1.1 r-0.6 -0.2 0.6 4.9 4.9 5.3 5.1 2.0 1.7 2.2 2.0 2.1 2.3 2.1 1.7 3.2 2.5 0.3 3.5 2.5 2.4 1.5 2.3 ANNUAL 3.0 2.7 -0.3 5.1 2.0 2.1 2.3 2.2 I II III IV r1.5 r1.4 r1.3 r1.9 3.3 3.8 3.6 4.3 r1.8 r2.4 r2.3 r2.4 r4.3 r4.1 r3.3 r2.8 r1.1 r0.9 r0.5 r0.0 2.8 2.7 2.0 0.9 0.7 r0.6 3.1 2.4 2.0 1.9 2.4 1.4 ANNUAL r1.5 3.8 r2.2 r3.6 r0.6 r2.0 1.7 1.9 I 3.1 5.6 2.4 3.7 r1.1 0.6 2.5 1.2 II r2.4 r5.4 r3.0 3.0 0.5 r0.5 r3.8 1.7 III 2.4 5.4 3.0 3.0 0.2 0.6 4.3 1.9 --------------------------------------------------------------------------------------------------------See footnotes following table 6. Nov. 9, 1994 r=revised Source: Bureau of Labor Statistics Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs, and prices, seasonally adjusted Real Year Output per Hours CompensacompensaUnit Unit nonImplicit and hour of of all tion per tion per labor labor pay- price quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator(4) --------------------------------------------------------------------------------------------------------Indexes 1982=100 1992 1993 I II III IV 112.6 113.1 113.9 115.0 133.6 134.4 135.9 137.9 r118.6 118.8 119.3 r120.0 150.9 152.6 154.7 r156.4 r105.0 105.3 106.0 106.3 134.0 134.9 135.9 136.1 149.5 150.4 147.0 152.1 139.0 139.9 139.5 141.2 ANNUAL 113.7 135.5 119.2 153.7 105.7 135.2 149.7 139.9 I II III IV r114.4 r114.5 r115.6 r117.0 138.3 139.9 141.5 144.3 r120.9 r122.1 r122.4 r123.3 r157.2 r158.2 r159.3 r160.2 r106.0 r105.8 r106.1 r105.9 137.5 138.1 137.7 136.9 151.5 151.8 r153.5 156.1 142.0 142.5 142.8 143.1 ANNUAL r115.4 141.0 r122.2 r158.7 r106.0 137.5 r153.3 142.6 1994 I r117.9 146.1 r124.0 r162.6 r106.9 137.9 r155.3 143.5 II 117.2 r147.3 r125.6 r162.9 r106.4 r138.9 r158.1 145.1 III 118.0 148.7 126.0 164.0 106.2 139.0 160.1 145.8 --------------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1992 1993 1994 I II III IV 4.2 1.9 2.8 r3.8 2.4 2.5 4.4 6.2 r-1.8 0.6 r1.6 r2.3 5.7 4.6 5.8 r4.5 3.0 1.2 r2.6 r1.2 1.4 2.6 r2.9 0.6 6.5 2.3 -8.6 r14.4 3.2 2.5 -1.2 5.1 ANNUAL 2.7 2.4 -0.3 5.1 2.0 2.4 2.2 2.3 I II III IV r-2.0 r0.4 r4.0 4.9 1.0 4.7 4.9 7.9 r3.0 r4.3 r0.9 2.9 r2.1 r2.4 2.8 2.4 r-0.9 r-0.7 r0.9 -0.6 r4.1 2.0 -1.2 -2.4 r-1.4 r0.8 4.4 7.1 2.2 1.6 0.7 0.8 ANNUAL r1.5 4.1 r2.5 r3.3 r0.2 1.7 r2.4 1.9 I II III 2.9 r-2.1 2.7 5.2 r3.2 3.9 2.3 r5.5 1.2 6.1 r0.7 2.9 3.9 r-2.0 -0.7 3.1 r2.9 0.1 -2.1 r7.5 5.2 1.2 r4.5 1.9 --------------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1992 1993 1994 I II III IV 2.4 2.4 2.7 3.2 1.4 1.8 2.6 3.8 -1.0 r-0.6 -0.1 r0.7 r4.9 5.0 5.3 r5.1 2.0 1.8 2.1 2.0 2.4 2.5 2.6 1.9 2.8 2.8 0.0 3.3 2.5 2.6 1.7 2.4 ANNUAL 2.7 2.4 -0.3 5.1 2.0 2.4 2.2 2.3 I II III IV r1.6 r1.2 r1.5 r1.8 3.5 4.0 4.2 4.6 r1.9 r2.8 r2.6 2.7 r4.2 r3.7 r2.9 r2.4 r1.0 r0.5 r0.1 r-0.3 2.6 2.4 1.4 0.6 1.3 0.9 r4.4 r2.7 2.1 1.9 2.4 1.3 ANNUAL r1.5 4.1 r2.5 r3.3 r0.2 1.7 r2.4 1.9 I r3.0 5.7 r2.6 3.4 0.9 r0.3 2.5 1.1 II r2.4 r5.3 2.8 3.0 r0.5 r0.6 r4.2 1.8 III 2.1 5.1 2.9 3.0 0.1 0.9 4.3 2.1 --------------------------------------------------------------------------------------------------------See footnotes following table 6. Nov. 9, 1994 r=revised Source: Bureau of Labor Statistics Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs, seasonally adjusted Real Year Output per Hours CompensacompensaUnit and hour of of all tion per tion per labor quarter all persons Output persons hour(1) hour(2) costs -------------------------------------------------------------------------------------------------Indexes 1982=100 1992 1993 I II III IV r127.3 128.6 129.1 r130.7 129.6 131.5 131.8 133.9 r101.8 r102.2 102.1 r102.5 r145.2 r146.8 148.4 r150.7 r101.0 r101.3 101.6 r102.4 114.1 114.1 114.9 115.3 ANNUAL 129.1 131.7 102.0 147.9 101.7 114.6 I II III IV r131.9 r133.3 r134.1 r136.7 136.0 137.1 137.9 140.9 r103.1 r102.8 r102.8 r103.0 r150.0 r152.1 r153.6 r155.1 r101.1 r101.8 r102.3 r102.5 113.7 114.1 114.5 113.5 ANNUAL r134.1 138.0 r102.9 r152.8 r102.0 114.0 1994 I r139.0 143.6 r103.3 r156.6 r103.0 112.7 II r140.9 r146.1 r103.7 r156.1 r101.9 r110.7 III 142.8 148.6 104.1 157.2 101.8 110.2 -------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1992 1993 1994 I II III IV r3.3 4.4 r1.5 r5.1 1.1 6.1 1.0 6.6 r-2.1 1.7 r-0.5 r1.4 r1.5 r4.5 r4.3 r6.5 r-1.1 1.2 r1.2 r3.2 -1.8 0.2 2.8 1.3 ANNUAL 3.7 3.1 -0.6 4.2 1.2 0.5 I II III IV r3.5 r4.6 r2.4 r7.8 6.1 3.5 2.4 8.7 r2.6 r-1.1 r0.0 r0.9 r-2.0 r6.0 r3.9 r3.9 r-4.9 r2.8 r2.0 r0.9 -5.3 1.3 1.5 -3.6 ANNUAL r3.9 4.8 r0.8 r3.3 r0.3 -0.6 I II III r6.9 r5.7 5.3 8.0 r7.3 7.1 r1.0 1.5 1.7 r4.0 r-1.4 3.1 r1.8 r-4.1 -0.5 -2.8 r-6.8 -2.1 -------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1992 1993 1994 I II III IV r3.8 r4.0 r2.9 r3.6 2.5 3.8 2.3 3.7 -1.2 -0.1 -0.6 r0.1 r4.0 4.0 4.2 r4.2 r1.1 r0.9 1.1 r1.1 0.2 0.0 1.2 0.6 ANNUAL 3.7 3.1 -0.6 4.2 1.2 0.5 I II III IV r3.6 r3.7 r3.9 r4.6 4.9 4.3 4.6 5.2 r1.3 r0.6 r0.7 r0.6 r3.3 r3.6 r3.5 r2.9 r0.1 r0.5 r0.7 r0.2 -0.3 0.0 -0.3 -1.6 ANNUAL r3.9 4.8 r0.8 r3.3 r0.3 -0.6 I r5.4 5.6 r0.2 r4.4 r1.9 -0.9 II r5.7 r6.6 0.8 2.6 0.1 r-2.9 III 6.4 7.8 1.3 2.4 -0.5 -3.8 -------------------------------------------------------------------------------------------------See footnotes following table 6. Nov. 9, 1994 r=revised Source: Bureau of Labor Statistics Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs, seasonally adjusted Real Year Output per Hours CompensacompensaUnit and hour of of all tion per tion per labor quarter all persons Output persons hour(1) hour(2) costs -------------------------------------------------------------------------------------------------Indexes 1982=100 1992 1993 I II III IV r137.0 r139.2 139.9 r142.5 136.1 138.5 138.8 142.1 r99.4 99.5 99.3 r99.7 r143.1 r144.9 146.4 r149.2 r99.5 r100.0 100.2 r101.4 104.4 104.1 104.6 104.7 ANNUAL 139.8 138.9 99.3 146.1 100.5 104.5 I II III IV r144.7 r146.9 r147.9 r152.3 145.2 146.7 148.0 153.1 r100.4 r99.9 r100.1 r100.5 r147.4 r149.4 r150.7 r152.3 r99.4 r100.0 r100.3 r100.7 101.9 101.7 101.9 100.0 ANNUAL r148.0 148.3 r100.1 r150.1 r100.2 101.4 1994 I r155.2 156.8 r101.0 r154.0 r101.2 99.2 II r157.0 r159.3 r101.4 r153.1 r100.0 r97.5 III 159.5 162.8 102.1 154.2 99.8 96.6 -------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1992 1993 1994 I II III IV r2.0 r6.7 r1.8 r7.9 -0.3 7.2 1.0 9.7 r-2.2 0.4 r-0.8 r1.6 r0.9 5.2 r4.1 r8.1 r-1.7 r1.8 r1.0 r4.7 -1.1 -1.5 2.3 0.2 ANNUAL 5.0 3.4 -1.5 4.5 1.5 -0.4 I II III IV r6.1 r6.3 r2.6 12.5 9.0 4.4 3.5 14.4 r2.8 r-1.9 r0.8 r1.7 r-4.8 r5.6 r3.4 4.4 r-7.6 r2.5 r1.5 r1.3 -10.3 r-0.7 r0.7 -7.2 ANNUAL r5.9 6.7 r0.8 r2.8 r-0.2 r-3.0 I II III r8.0 r4.8 6.4 10.2 r6.5 9.1 r2.0 1.7 2.5 r4.4 r-2.3 2.9 r2.3 r-4.9 -0.7 -3.3 r-6.7 -3.3 -------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1992 1993 1994 I II III IV r5.1 r5.7 4.0 r4.6 2.9 4.2 2.4 4.3 r-2.1 r-1.4 -1.5 r-0.2 r4.0 r4.4 4.6 r4.5 r1.1 r1.3 1.5 r1.4 -1.1 -1.2 0.6 0.0 ANNUAL 5.0 3.4 -1.5 4.5 1.5 -0.4 I II III IV r5.6 r5.5 r5.7 r6.8 6.7 6.0 6.6 7.7 r1.0 r0.4 r0.8 r0.8 r3.0 r3.1 r2.9 r2.1 r-0.1 r0.0 r0.1 r-0.7 -2.4 -2.2 -2.6 r-4.5 ANNUAL r5.9 6.7 r0.8 r2.8 r-0.2 r-3.0 I r7.3 8.0 r0.7 r4.4 r1.9 r-2.7 II r6.9 r8.6 r1.6 2.4 0.0 r-4.2 III 7.9 10.0 2.0 2.3 -0.5 -5.2 -------------------------------------------------------------------------------------------------See footnotes following table 6. Nov. 9, 1994 r=revised Source: Bureau of Labor Statistics Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs, seasonally adjusted Real Year Output per Hours CompensacompensaUnit and hour of of all tion per tion per labor quarter all persons Output persons hour(1) hour(2) costs -------------------------------------------------------------------------------------------------Indexes 1982=100 1992 1993 I II III IV 115.4 115.8 116.1 116.5 121.5 122.9 123.2 124.0 105.3 106.2 106.1 106.4 149.5 151.0 152.7 r154.2 104.0 104.2 104.6 104.8 129.5 130.4 131.5 132.4 ANNUAL r116.0 122.9 105.9 152.0 104.5 131.0 I II III IV 116.5 r117.1 117.7 118.1 124.6 125.3 125.6 125.9 107.0 107.0 106.7 106.6 155.2 157.7 r159.5 r160.7 r104.6 105.5 r106.2 r106.2 133.3 134.6 135.5 136.1 ANNUAL r117.3 125.4 106.8 158.3 105.7 134.9 1994 I r119.5 127.4 106.5 r161.9 106.5 135.4 II r121.6 r130.0 r106.9 161.9 r105.7 r133.1 III 122.6 131.3 107.1 163.2 105.6 133.1 -------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1992 1993 1994 I II III IV 5.2 1.3 r1.0 1.4 3.1 4.8 0.9 2.5 -2.0 r3.4 -0.2 1.1 2.4 r3.9 r4.6 r4.1 r-0.3 0.5 1.5 r0.8 -2.7 2.6 3.6 2.7 ANNUAL 2.0 2.6 0.6 4.0 0.9 1.9 I II III IV r-0.2 2.3 2.0 r1.2 2.1 2.2 0.9 1.0 r2.3 -0.1 -1.1 -0.3 r2.4 6.6 r4.6 3.1 r-0.6 3.4 2.7 0.1 2.6 4.2 2.6 1.8 ANNUAL r1.1 2.0 r0.9 r4.1 1.1 3.0 I II III 5.2 r7.1 3.3 4.7 r8.5 4.1 -0.4 r1.3 0.7 3.1 r-0.1 3.2 0.9 r-2.8 -0.3 -2.0 r-6.7 -0.1 -------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1992 1993 1994 I II III IV 2.0 1.7 1.5 2.2 2.0 3.3 2.2 2.8 0.0 1.6 0.7 0.6 4.1 3.7 3.8 3.8 1.2 r0.6 0.7 0.7 2.0 1.9 2.2 1.5 ANNUAL 2.0 2.6 0.6 4.0 0.9 1.9 I II III IV 0.9 r1.1 1.4 r1.3 2.6 1.9 1.9 1.5 r1.7 0.8 r0.6 0.2 3.8 r4.4 r4.4 4.2 0.6 1.3 1.6 1.4 2.9 3.3 3.0 2.8 ANNUAL r1.1 2.0 r0.9 r4.1 1.1 3.0 I 2.7 2.2 r-0.4 r4.3 1.8 1.6 II r3.8 r3.7 -0.1 r2.7 0.2 r-1.1 III 4.2 4.5 0.3 2.3 -0.5 -1.8 -------------------------------------------------------------------------------------------------See footnotes following table 6. Nov. 9, 1994 r=revised Source: Bureau of Labor Statistics Table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor costs, unit profits, and prices, seasonally adjusted Output Hourly Real Unit Total Unit Implicit Year per allcompenhourly Unit nonunit proprice and employee Employee sation compenlabor labor cost fits deflator quarter hour Output hours (1) sation(2) costs cost(6) (7) (8) (4) ---------------------------------------------------------------------------------------------------------Indexes 1982=100 1992 1993 I II III IV r116.8 117.6 119.1 120.6 137.3 138.8 140.7 143.4 117.6 118.1 118.1 118.9 147.7 149.4 151.5 153.1 102.7 103.1 103.7 104.0 126.5 127.1 127.2 127.0 119.3 118.0 119.0 115.7 124.5 124.5 124.9 123.8 170.4 175.6 171.0 191.2 127.3 127.6 127.7 127.9 ANNUAL 118.5 140.0 118.2 150.4 103.5 126.9 118.0 124.4 177.2 127.7 I II III IV 120.0 r121.3 122.7 124.1 143.3 145.9 148.1 150.9 119.4 r120.3 120.7 121.6 154.0 154.5 155.4 r155.9 103.8 103.4 103.5 103.1 128.3 127.3 126.7 125.7 116.8 115.8 115.8 114.8 125.0 124.1 123.6 122.6 183.7 199.4 202.5 220.9 128.7 128.7 128.5 128.7 ANNUAL 122.0 147.0 120.5 154.9 103.5 127.0 115.8 123.8 201.9 128.6 1994 I 125.1 153.0 122.3 157.9 r103.8 126.2 116.6 123.5 218.2 129.4 II r124.6 154.8 124.2 157.9 r103.1 126.7 115.2 123.4 r228.7 129.9 ---------------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1992 1993 1994 I II III IV r1.3 2.9 5.2 5.1 0.9 4.7 5.5 8.0 -0.4 1.7 r0.3 2.7 3.9 4.7 5.7 4.3 1.2 1.3 2.5 1.0 2.6 1.7 0.4 -0.8 -2.6 -4.4 3.5 -10.4 1.2 0.0 1.2 -3.5 14.8 12.8 -10.0 56.4 2.2 1.0 0.2 0.7 ANNUAL 3.0 3.2 0.1 4.6 1.6 1.6 -2.1 0.5 7.6 1.1 I II III IV -1.9 4.5 4.5 4.7 -0.3 7.5 6.0 7.8 1.7 2.8 r1.5 3.0 r2.3 1.4 2.2 1.4 -0.7 -1.7 0.4 -1.5 4.4 -3.0 -2.1 -3.1 3.6 -3.3 0.0 -3.4 4.2 -3.1 -1.6 -3.2 -14.9 38.9 6.5 41.5 2.3 0.2 -0.8 0.6 ANNUAL 3.0 5.0 2.0 3.0 0.0 0.0 -1.9 -0.5 14.0 0.8 I II 3.3 r-1.4 5.8 4.8 2.5 r6.4 5.1 r-0.1 r3.0 -2.7 1.8 1.4 6.6 r-4.8 3.1 r-0.3 -4.9 r20.7 2.2 1.8 ---------------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1992 1993 1994 I II III IV 2.4 2.6 3.3 3.6 1.7 2.7 3.5 4.7 -0.7 0.2 0.3 1.1 4.3 4.5 4.9 r4.6 1.4 1.3 1.7 1.5 1.8 1.9 1.6 1.0 -1.2 -2.1 -1.5 -3.6 1.0 0.8 0.7 -0.3 5.2 5.0 3.7 16.2 1.3 1.1 0.9 1.1 ANNUAL 3.0 3.2 0.1 4.6 1.6 1.6 -2.1 0.5 7.6 1.1 I II III IV 2.8 3.2 3.0 2.9 4.4 5.1 5.2 5.2 1.6 1.9 2.2 2.2 r4.2 3.4 2.6 r1.8 r1.0 0.3 r-0.3 -0.9 1.4 0.2 -0.4 -1.0 -2.1 -1.8 -2.7 -0.8 0.5 -0.3 -1.0 -1.0 7.8 13.6 18.5 15.5 1.1 0.8 0.6 0.6 ANNUAL 3.0 5.0 2.0 3.0 0.0 0.0 -1.9 -0.5 14.0 0.8 I 4.2 6.8 2.4 2.5 0.0 -1.6 -0.1 -1.2 18.8 0.5 II 2.7 6.1 3.3 2.2 r-0.3 -0.5 -0.5 -0.5 r14.7 0.9 ---------------------------------------------------------------------------------------------------------See footnotes following table 6. Nov. 9, 1994 r=revised Source: Bureau of Labor Statistics 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 about 35 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 initial value by between -2.0 and +2.0 index points. This interval is based on the performance of this measure between the third quarter of 1976 and the fourth quarter of 1992. Footnotes, Tables 1-6 (1) Wages and salaries of 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 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) 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. (7) Total unit cost is the sum of labor and nonlabor costs. (8) Unit profits include corporate profits with inventory valuation and capital consumption adjustments.
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