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Productivity
and the Economy:
A Chartbook
U.S. Department of Labor
Bureau of Labor Statistics
March 1988




Productivity
and the Economy
A Chartbook

/ si.

3

;

U.S. Department of Labor
Ann McLaughlin, Secretary
Bureau of Labor Statistics
Janet L. Norwood, Commissioner
March 1988
Bulletin 2298




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For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402







Preface

Productivity plays a role in most is­
sues of economic policy. Consequently,
there is a continuous need for informa­
tion about productivity although the
focus and level of attention vary with the
economic climate. Thus, the relation be­
tween productivity and employment has
been an especial concern in times of
economic slowdown. During periods of
rising prices, on the other hand, atten­
tion centers on the relationships among
productivity, wages, and costs. Further­
more, the link between productivity and
economic growth is constantly being
studied.
This chartbook is designed to show
what has been happening to productiv­
ity and how it interacts with other as­
pects of the economy. The presentation
is divided into two parts. The first part
shows how productivity has changed

over time. It presents charts, explana­
tory text, and data relating to trends in
the traditional measures of labor pro­
ductivity, and also in the more recently
developed BLS measures of multifactor
productivity. The second part examines
the influence of productivity on changes
in costs, prices, and other variables. It
also includes charts tracing trends in
capital formation and research and de­
velopment. Wherever possible, interna­
tional comparisons are presented so as
to add perspective to a subject that is
often treated solely within a national
framework.
This chartbook was produced by the
Office of Productivity and Technology of
the Bureau of Labor Statistics. Material
in this publication is in the public do­
main and, with appropriate credit, may
be reproduced without permission.




Contents

V

Page
Productivity and how it is measured .............................................................................................................................

vii

Part I: What has been happening to productivity..............................................................................................

1

Charts:
1.

Output per hour of all persons in the business economy, 1909-87 ... .......................................................................

3

2. Output per hour of all persons in the total business and nonfarm business economy, 1960-87 ................................

5

3. Output per hour of all persons by major sector, 1960-86 ...........................................................................................

7

4. Output per employee hour in selected industries, 1960-86 .......................................................................................

9

5. Productivity rates in selected industries, 1973-79 and 1979-86 .................................................................................

11

6. Output per hour of all persons, output per unit of capital, and multifactor productivity, private business sector,
1960-86 ...............................................................................................................................................................

13

7. Output per hour of all persons, capital effects, and multifactor productivity, selected periods, 1960-86 ....................

15

8. Output per hour and multifactor productivity in selected manufacturing industry sectors, 1960-83
and 1973-83 .......................................................................................................................................................

17

9. Output per hour and multifactor productivity in four industries, 1960-85 ...................................................................

19

10. Output per employee year and related measures, Federal Government, measured sample, fiscal years
1967-86 ...............................................................................................................................................................

21

11. Output per employee year by functional grouping, and total measured sample, Federal Government,
fiscal years 1967-86 ...........................................................................................................................................

23

12. Trends in real gross domestic product per employed person, selected countries, 1960-86 ........................................

25

13.

Relative levels in real gross domestic product per employed person, selected countries, 1960-86 ...........................

27

14. Output per hour in manufacturing, selected countries, 1960-86 ...............................................................................

29

15. Output per employee hour in manufacturing, selected countries, 1973-79 and 1979-86 ............................................

31

Part II: Productivity change in relation to changes in costs, prices, real income, and
employment .................................................................................................................................................................

33

16. Output per hour of all persons, unit labor costs, and compensation per hour in the business economy,
1960-86 ...............................................................................................................................................................

35

17. Composition of price change, business economy, 1960-86 .......................................................................................

37

18. Output per hour of all persons, compensation per hourjunit labor costs, and prices in major sectors,
1979-86 .................................................... . . . : .................................................................................................

39

19. Output per employee hour and compensation per employee hour, selected manufacturing industries,
1972-85 ...............................................................................................................................................................

41

20. Relation between output per employee hour and prices, selected industries, 1965-85 ..............................................

43

21.

Output per employee hour and employment, selected industries, 1973-86 ............................................................... 45

22. Output and employment in selected industries with similar productivity growth rates, 1960-85 ..................................

47

23. Output per hour of all persons and real compensation per hour in the business economy, 1950-86 ..........................

49

24. Gross domestic product per capita and average weekly hours in the business economy,
1950-86 ...................................................................................................................

51




Contents—Continued

VI

Page
25. Comparative levels in nonresidential capital formation per employed person, selected countries,
1979-85 ................................................................................................................................................................

53

26. Growth rates in gross fixed capital formation per employed person, selected countries, 1970-79 and
1979-85 ................................................................................................................................................................

55

27. Expenditures for research and development as a percent of gross national product, all R & D and nondefense
R & D, selected countries, 1961-86 ....................................................................................................................

57

28. Scientists and engineers engaged in R & D, selected countries, 1976 and 1986 ......................................................

59

Appendix: Supporting data for charts ......................................................................................................................................

61







Productivity and
How It Is Measured

Productivity is a concept that expres­
ses the relationship between the quan­
tity of goods and services produced—
output—and the quantity of labor, capi­
tal, land, energy, and other resources
that produced it—input. It can be mea­
sured in two ways. One relates the out­
put of an enterprise, industry, or
economic sector to a single input such
as labor or capital. The other relates
output to a composite of inputs, com­
bined so as to account for their relative
importance. The choice of a particular
productivity measure depends on the
purpose for which it is to be used.
The best known measure of produc­
tivity relates output to the input of labor
time—output per hour, or its reciprocal,
unit labor requirements. This kind of
measure is used widely because labor
productivity is relevant to most
economic analyses, and because labor
is the most easily measured input. Re­
lating output to labor input provides a
tool not only for analyzing productivity
but also for examining labor costs, real
income > and employment trends.
Labor productivity can be measured
at several levels of aggregation: The
business economy, its component sec­
tors, industries, or plants. Many of the
productivity measures used in this
chartbook are measures of output per
hour. Depending on the components of
the measure used and the context,
labor productivity will be called output
per hour of all persons engaged in the
productive process, output per em­
ployee hour, or just output per hour.
Movements of labor productivity index­
es reflect the change in labor input to
produce goods and services. This does

not imply that labor is solely or primarily
responsible for productivity growth.
Many factors affect the use of labor in
generating output, including technologi­
cal innovations, changes in capital
stock per-worker, capacity utilization,
the scale of production, materials flow,
management skills, as well as changes
in labor skills and efforts.
Multifactor productivity measures
consist of output per unit of combined
inputs of labor, capital, and intermediate
materials (such as energy). They are
also included in this chartbook and
cover total private business, nonfarm
business, manufacturing and its indus­
try sectors, and a number of manufac­
turing industries. Movements in these
measures differ from those of traditional
labor productivity measures because
they exclude the effects of changes in
the substitution of capital and other in­
puts for labor.
The output side of the productivity
ratio refers to the finished product or the
amount of real value added in various
enterprises or industries. Few plants or
industries produce a single homogene­
ous commodity whose output can be
measured by simply counting the
number of units produced. Con­
sequently, for the purpose of measure­
ment, the various product lines of a
plant’s or an industry’s output are com­
bined on some common basis—either
their unit labor requirements or their dol­
lar value in a base period. When infor­
mation on the amount of units produced
is not available, as is often the case,
output is expressed in terms of the dol­
lar value of production, adjusted for
price changes.







Part I
What has been happening to productivity

The first set of charts in this part of
the chartbook shows the longer term
trend in output per hour in the business
economy, its major sectors, and in
selected industries. The next set
examines trends in multifactor produc­
tivity, again detailing the different pat­
terns that mark the private business
economy1, manufacturing and its indus­
try sectors, and some individual indus­
tries. In addition, there are charts which
trace developments in output per em­

1

ployee year in major parts of the Fed­
eral Government and charts which pro­
vide international comparisons of pro­
ductivity trends.
1T h e

p riv a te

b u s in e s s

econom y

e x c lu d e s

g o v e rn m e n t e n te rp ris e w h ile th e total b u si­
n e s s e c o n o m y in clu d es it. Both d e fin ition s
e x c lu d e su ch e n titie s a s no np ro fit e n te r­
prise s, a s w ell a s g o v e rn m e n t a g e n c ie s
o th e r th a n g o v e rn m e n t e n te rp ris e (s u ch as
th e P o st O ffic e ).

2




P ro d u c tiv ity has a d v a n c e d o v e r th e
past e ig h t d e c a d e s .. .

Official U.S. measures of productivity
begin with the year 1909. In general,
productivity has moved upward. In
1987, productivity in the business eco­
nomy was 41 times higher than in
/2
1909.

Period

Output per hour of all persons in
the business economy
(average annual percent change)

1909-1987.............................................................

2.3

1909-291 .......................................................
1929-471 .......................................................
1947-73 .........................................................
1973-79 .........................................................
1979-87 .........................................................

1.5
2.9
2.9

'Total private economy until 1946.

1.0
1.4

3

Chart 1.
Output per hour of all persons in the business economy, 1909-87

Index, 1 9 0 9 — 1 0 0

S ource: B ureau of Labor S tatistics




Ratio scale

4




. . .but th e a d v a n c e has slo w e d d u ring
th e last d e c a d e and a half

Rates of growth in the productivity of
the total business economy and the
nonfarm business economy slowed
after 1973. No simple explanation for
the decline exists, nor is there general
agreement on the quantitative effect of
the various factors. Explanations for the
slowdown have included the effects of
change in the composition of the labor
force as the proportion of younger and
less experienced workers has in­
creased; a slower rise in the capitallabor ratio, resulting from lessened in­
vestment in equipment and structures
at the same time that employment and
hours were rising strongly; a leveling off

in research and development expendi­
tures; diversion of investment funds to
pollution abatement; the maturation of
some industries with little new technol­
ogy; and changes in attitudes toward
work.
The slowdown in productivity growth
was most pronounced during the
1970’s. A partial recovery of the growth
rate occurred over the 1979-87 span,
largely owing to strong advances in
goods-producing industries. In many of
these industries, hours rose much more
slowly than earlier compared with out­
put.

Output per hour of all persons
(average annual percent change)
Period
Business economy

Nonfarm business economy

1960-87 .........................................

1.8

1.6

1960-73 ..................................
1973-79 ..................................
1979-87 ...................................

2.7
.6
1.3

2.4
.5
1.1

5

Chart 2.
Output per hour of all persons in the total business
and nonfarm business economy, 1960-87

I960

1965

S ource: B ureau of Labor S tatistics




1970

1975

1980

1985

1990

6




P ro d u ctiv ity g ro w th v a rie s a m o n g
secto rs of th e e c o n o m y .. .

There are wide variations in the rates
of productivity change of the various
sectors of the economy. All sectors ex­
perienced significant slowdowns in their
average annual rates of productivity
growth between 1973 and 1979. Most
have experienced faster growth in re­
cent years.

Output per hour (average annual percent change)
Sector1
1960-86
F arm ...............................................
Communications............................
Manufacturing................................
Electric, gas, and sanitary
services.......................................
Trade .............................................
Transportation ..............................
M ining.............................................

1960-73

1973-79

1979-86

5.0
4.5
2.8

4.3
4.9
3.2

3.1
4.2
1.4

7.9
4.0
3.5

2.7
2.3
1.6
.4

4.6
3.1
3.2
3.4

.1
.8
1.1
-7.1

1.3
2.0
-0.6
1.6

1Adequate productivity data are not available for services; construction; and finance, insurance, and
real estate.

7

Chart 3.
Output per hour of all persons by major sector, 1960-86

I960

1965

S ource: B ureau of Labor S tatistics




1970

1975

1980

1985

1990

s




. . .and it varies even m o re a m o n g
in d ivid u al in d u s trie s

Productivity trends in individual indus­
tries are widely dispersed. Some indus­
tries, such as hosiery, together with
synthetic fibers and malt beverages,
had average annual increases of
around 6 percent. These large in­
creases reflected many factors. Among
them were new technologies, advanced
production methods and increased out­
put with economies of scale. Other in­
dustries, such as footwear, coal mining,
and metal stampings, experienced rela­
tively small gains or even declines. The
lack of productivity gains in footwear, for
example, has been linked to difficulties
in adopting mass production methods;
and the weak productivity in coal mining
has been partly related to strong em­
ployment increases during the first half
of the 1970’s.

9

Chart 4.
Output per employee hour in selected industries, 1960-86

Average annual percent change
Radio and television receiving sets
Synthetic fibers
Telephone communications
Railroad transportation, revenue traffic
Major household appliances
Cotton and synthetic broad woven fabrics1
Gasoline service stations
Instruments to measure electricity2
Tires and inner tubes
Motor vehicles and equipment
Department stores3
Paints and allied products
Household furniture
Steel
Primary aluminum
Hotels, motels, and tourist courts
Commercial banking4
Coal mining
Beauty shops1
Laundry and cleaning services
Automotive repair shops1
-2

11 9 7 2 - 8 6
2 1 9 7 2 -8 5
319 6 7 -8 6
4 19 6 7 -8 5

S ource: B ureau of Labor S tatistics




-1

0

1

2

3

4

5

6

7




P ro d u ctiv ity g ro w th a m o n g in d u s trie s
has a c c ele ra te d s o m e w h a t in th e
1 9 8 0 ’s

More than half of the industries for
which productivity measures have been
developed recorded faster productivity
advances during the 1980’s than from
1973 to 1979.

11

Chart 5.
Productivity rates in selected industries, 1973-79 and 1979-86

Copper mining, recoverable metal
Radio and television receiving sets
Railroad transportation, revenue traffic
Bituminous coal and lignite mining
Semiconductors and related devices
Hydraulic cement
Sawmills and planing mills
Tires and inner tubes
Steel
Nonwool yarn mills
Primary aluminum
Air transportation
Gasoline service stations
Franchised new car dealers
Pharmaceutical preparations
Hosiery
Wood kitchen cabinets
Transformers
Hand and edge tools
Gas utilities
Oilfield machinery and equipment
-5

S ource: B ureau of Labor S tatistics




0

5

10

15

20

12




Multifactor productivity growth slowed
down during the 1970’s

Multifactor productivity— as
mea­
sured by output per unit of labor and
capital input— rose 1.1 percent per year
between 1960 and 1986. Within this
period, however, the rate of growth fell
after 1973.
The multifactor productivity measure
differs from the familiar BLS measure of
output per hour of all persons (or em­
ployees) in that it adjusts for the effects

of changes in the capital-labor ratio.
Comparing the two productivity series
indicates how much the growth or falloff
in the traditional measure was due to
changes in capital per hour, and how
much arose from a combination of such
other factors as changes in technology,
shifts in the composition of the labor
force, capacity utilization, and so on.

Multifactor productivity in the private econom y, selected periods
Period

1960-86

A verage annual rates of growth
(in percent)

.................................................................................................................

1.1

1960-73 ..............................................................................................................
1973-79
1979-86 ..............................................................................................................

1.8
.1
.5

13

Chart 6.
Output per hour of all persons, output per unit of capital,
and multifactor productivity, private business, 1960-86

1960

1965

Source: Bureau of Labor Statistics




1970

1975

1980

1985

1990

14




Multifactor productivity has grown
significantly less than labor
productivity

The difference between the growth in
the traditional BLS productivity meas­
ure— output per hour— and the multifac­
tor productivity series shows the con­
tribution of changes in the substitution
of capital for labor. Almost all of the
growth in labor productivity in the
1970’s resulted from the growth of capi­
tal substitution. During the 1980’s, both
multifactor productivity and the substitu­
tion of capital for labor accelerated.

Average annual rates of change in output per hour of all persons, the contribution of
capital services per hour, and multifactor productivity, private econom y, 1960-86
1960-73

1973-79
(2)

1979-86

0)

............

2.7

0.6

1.4

Minus: C ontribution of capital
services per hour2 .....................

.9

.5

.9

Equals: M ultifactor
productivity3 ...............................

1.8

.1

.5

M easures

(3)

Private b u sin ess1
O utput per hour of all persons

1Excludes governm ent enterprises.
zC hange in capital per unit of labor w eighted by cap ital’s share of total output.
3O utput per unit of com bined labor and capital input.

15

Chart 7.
Output per hour of all persons, capital effects, and multifactor
productivity, private economy, selected periods, 1960-86

Average annual rates of change, in percent

4 . 0 ----------------------------------------------------

Growth of output per hour of all persons

3.5

Private business

1960-73

1973-79

Source: Bureau of Labor Statistics




Manufacturing

1979-86

1960-73

1973-79

1979-86




Manufacturing industry sector
multifactor productivity rates slowed
during the 1973-83 decade

BLS recently developed measures of
multifactor productivity for 20 manufac­
turing industry sectors to supplement
the traditional output-per-hour meas­
ures. All but 3 of the 20 industry sectors
experienced a decline in both outputper-hour and multifactor productivity
growth during the. 1973-83 span com­
pared with 1960-73. In the majority of
industry sectors, the decline in outputper-hour growth was associated with a
decline in the rate of capital substitution.

17

Chart 8.
Output per hour and multifactor productivity in selected
manufacturing industry sectors, 1960-83 and 1973-83

Average annual rates

4.0

Total
manufacturing

Primary
metal
industries

Source: Bureau of Labor Statistics



Food and
kindred
products

Chemicals
and allied
products

Transportation
equipment

Paper and
allied
products

Machinery,
except
electrical

18




Some industries showed substantial
productivity gains in the 1980’s

In steel, motor vehicles, and tires and
inner tubes, annual rates for both output
per hour and multifactor productivity
rose significantly in the 1980’s com­
pared to the 1970’s. Most returned to or
exceeded the high rates of the 1960’s.
In the footwear industry, output per hour
also rose, but the multifactor productiv­
ity rate dropped.

Output per hour and multifactor productivity in four industries, selected periods
Average annual rates (in percent)
Industry and m easure

1960-73

1973-79

1979-85

2.5
.8

0.2
-0.2

4.8
3.4

3.2
1.2

3.2
1.6

4.8
1.8

3.5
.8

2.9
2.9

6.7
4.4

.5
-1.5

1.2
1.0

1.4
-1.6

Steel
O utput per hour ...........................................................
M ultifactor productivity1 .............................................
M otor vehicles
O utput per hour ...........................................................
M ultifactor productivity1 ............................................
Tires and tubes
O utput per hour ...........................................................
M ultifactor productivity1 .............................................
Footw ear
O utput per hour ...........................................................
M ultifactor productivity1 ............................................

10 u tp u t per unit of labor, capital, and interm ediate purchases, com bined by appropriate weights.
Note: O utput per hour m ay differ from the data underlying oth er charts in this chartbook because of differ­
ences in the sources used and in the w eighting techniques for aggregating product lines.

19

Chart 9.
Output per hour and multifactor productivity in four industries, 1960-85

I960

1965

1970

1975

1980

1985

1990

1960

1965

1970

1975

1980

1985

1990

1960

1965

1970

1975

1980

1985

1990

1960

1965

1970

1975

1980

1985

1990

Source: Bureau of Labor Statistics




20




Significant productivity advances have
occurred in the Federal Government

BLS has developed and refined pro­
ductivity measures for a substantial por­
tion of the Federal Government. Cur­
rently, these measures cover about
two-thirds of Federal civilian employ­
ment. In the measured sample, produc­
tivity increased at a rate of 1.5 percent a
year between 1967 and 1986, reflecting
a 1.5-percent average annual increase
in output and no change, on balance, in
the level of employment.

21

Chart 10.
Output per employee year and related measures, Federal Government,
measured sample, fiscal years 1967-86

1967

1970

Source: Bureau of Labor Statistics




1975

1980

1985

1990

22




P ro d u ctiv ity g a in s v a ried s u b s ta n tia lly
am o n g Federal G o v e rn m e n t
o rg a n iza tio n s

Federal Government organizations
are grouped into 28 functional classifi­
cations. Productivity trends for the func­
tions have varied substantially, ranging
from a long-term increase of 10.9 per­
cent per year for communications to a
decrease of 2.9 percent for electric
power production and distribution. Eight­
een of the categories exceeded the
rate for the overall sample or equalled
it, while 9 fell below.
The largest gains in productivity were
due to technological improvements in
equipment and the introduction of com­
puterized systems. Thus, the increase
in productivity in the communications
function between 1973 and 1986 was
associated with a sharp growth in out­
put and a declining work force. Through
equipment upgrading, technological im­
provements, and increased use of auto­

mated facilities, the Federal telecom­
munications system was able to service
an expanding volume of calls with lower
labor inputs.
Noteworthy productivity advances
also occurred in library services. The
application of automated systems to
data retrieval systems, cataloging, cir­
culation, distribution, and inventory con­
trol contributed to productivity ad­
vances.
Among functional areas with very
small productivity advances were legal
and judicial activities and printing and
duplication services. The drop in elec­
tric power production and distribution
reflects a considerable excess in input
growth over the output growth rate,
owing chiefly to difficulties in operating
nuclear power installations at TVA
power plants.

23

Chart 11.
Output per employee year by functional grouping, and total measured sample,
Federal Government, fiscal years 1967-86

Average annual percent change
Communications
Finance and accounting
Library services
General support services
Buildings and grounds
Regulation - rulemaking and licensing
Loans and grants
Records management
Specialized manufacturing
Procurement
Regulation - compliance and enforcement
Personnel investigations
Transportation
Social services and benefits
Traffic management
Education and training
Natural resources and environmental mgmt.
Total measured sample
Postal service
Supply and inventory control
Information services
Audit of operations
Equipment maintenance
Personnel management
Military base services
Printing and duplication
Medical services
Legal and judicial activities
Electric power production & distrib.
-4

S ource: Bureau o f Labor S tatistics




-2

0

2

4

6

8

10

12

24




U.S. p ro d u c tiv ity g ro w th has traile d
th a t o f o th e r m ajo r in d u strial c o u n trie s

Between 1960 and 1986, real gross
domestic product (GDP) per employed
person increased at different rates
among the seven major industrial coun­
tries compared here.
Each country experienced a slower
rate of growth in real GDP per em­
ployed person after 1973 than earlier.
The slowdown was most marked in
Japan.

Real gross domestic product per employed person
(average annual percent change)
Country
1960-86
United States ......................
Canada ................................
Japan ..................................
France ................................
Germany..............................
Ita ly.......................................
United Kingdom ..................

1.2
1.9
5.5
3.6
3.1
3.7

2.2

1960-73

1973-79

1979-86

1.9

0.0
1.3
2.9
2.7
2.9
1.7
1.3

0.8
1.0
2.8

2.6
8.2
4.9
4.1
5.8
2.9

1.9

1.6
1.6
1.7

25

Chart 12.
Trends in real gross domestic product per employed person,
selected countries, 1960-86

I960

1965

Source: B ureau o f Labor S tatistics




1970

1975

1980

1985

1990

26




T h e U.S. level o f o u tp u t per hour,
un like its tren d , is still a h ead o f th a t of
o th er m ajo r in dustrial c o u n trie s

Although the United States has the
lowest rates of change in real domestic
product per employed person among
many industrialized countries, it still has
the highest level of gross domestic
product per employed person. The gap
between the United States and the
other countries has narrowed signific­
antly since the 1960’s. Japan gained
the most over the period, yet its level in
1986 was still below that of the United
States.
Canada came closest to the United
States in 1986, but its real product per
civilian employee still remained 5 per­
cent below that of the United States.

Gross domestic product per employed person relative to the
United States, selected years and countries
Country
1966

United States ................................
Canada ...........................................
Japan .............................................
France ...........................................
Germany.........................................
Ita ly.................................................
United Kingdom ............................

1976

1986

100 0

100.0

100.0

79.5
32.0
52.4
54.5
53.4
52.0

92.2
54.4
73.1
71.6
74.0
63.9

95.0
68.9
84.3
80.9
82.9
70.4

27

Chart 13.
Relative levels in real gross domestic product
per employed person, selected countries, 1960-86

Index, United States = 100

Source: Bureau of Labor S tatistics







L o n g -term tren d s in m a n u fa c tu rin g
p ro d u c tiv ity in m an y in d u strial
c o u n trie s have o u tp a ce d th e
U nited S tates

Between 1960 and 1986, output per
hour in manufacturing rose in the major
industrial countries shown here. Pro­
ductivity growth was lowest in the
United States and highest in Japan.

Country

United States ................................
Canada ...........................................
Japan .............................................
France ...........................................
Germany.........................................
United Kingdom ............................

Manufacturing output per hour, 1960-86
(average annual percent rate)

2.8
3.1
7.9
5.3
4.6
3.6

29

Chart 14.
Output per employee hour in manufacturing,
selected countries, 1960-86

I960

1965

S ource: B ureau of Labor S tatistics




1970

1975

1980

1985

1990

30




P ro d u ctiv ity ad v a n c e d fa s te r a fte r
1979 than e a rlie r in several leading
co u n tries

After 1973, manufacturing productiv­
ity grew at a slower rate than over the
1960-73 period in all the major industrial
countries compared here. The slow­
down was particularly marked for Japan
and Italy. After 1979, however, the rate
for the United States recovered and ex­
ceeded the rate for 1960-73. That also
held for the United Kingdom. The rate
for Germany and France failed to re­
cover; it declined even further for
Canada.

31

Chart 15.
Output per employee hour in manufacturing,
selected countries, 1973-79 and 1979-86

Average annual percent change

United States

Canada

Source: B ureau o f Labor S tatistics




Japan

France

Germany

United Kingdom







Part II.
Productivity change in relation to changes in costs,
prices, real income, and employment

The first charts in this section de­
monstrate the role of output per hour as
a critical link between the cost of labor
and the price of goods and services.
Labor costs, which include pay and sup­
plementary benefits, represent the
largest single cost element for most in­
dustries. Movement in labor costs per
unit of output is closely associated
with movement of prices. Unit labor
costs in turn reflect changes in hourly
compensation and productivity. If the ef­
fects of an increase in hourly labor
costs can be reduced by increased pro­
ductivity, pressure to increase prices
will lessen in a competitive economy.
Increases in unit labor costs can re­
sult from, as well as cause, price in­
creases. If employee purchasing power
drops because of higher prices, pres­
sure will develop for higher wages.
Should wage increases exceed produc­
tivity growth, unit labor costs will rise.
The next set of charts shows the
movements of real hourly compensation
and productivity. Differences between
the movements in these two series pro­

33

vide some indication of changes in the
relative labor and nonlabor shares of
output. These charts also show how the
benefits of increased productivity have
been taken, either in the form of higher
income or more leisure.
The relationship between productivity
and employment is the subject of the
next set of charts. The effects of pro­
ductivity on employment depend upon
the circumstances in which the produc­
tivity change occurs. In expanding in­
dustries, increasing productivity histori­
cally has been associated with rising
employment; in declining industries,
productivity gains have been associated
with shrinking employment.
The last set of charts bears on some
of the forces underlying productivity
change. The effect of these forces on
productivity cannot always be directly
measured. The charts show changes in
capital formation per employed person
and in research and development ex­
penditures, both key factors affecting
productivity change over time.




C h a n g e s in unit lab o r c o s ts are
in versely related to c h a n g e s in
p ro d u c tiv ity

Productivity is an important determin­
ant of cost movements. This is de­
monstrated by the two top panels of the
chart, which are almost mirror images of
each other, showing that unit labor
costs tend to rise when productivity
growth slows, and to decline when pro­
ductivity growth accelerates.
Hourly compensation rose more dur­
ing the mid- and late 1970’s than before

or after. In addition, the rate of produc­
tivity improvement was slower. Hence,
unit labor costs rose much more rapidly.
Between 1973 and 1979, the rate of
productivity improvement was particu­
larly slow, while hourly compensation
accelerated. Therefore, unit labor costs
rose more steeply during this period
than in the preceding or following
periods.

Average annual percent change
Period
Output per hour

Unit labor costs

Compensation
per hour

1960-86 .........................................................

1.9

4.8

6.7

1960-73 .......................................................
1973-79 .......................................................
1979-86 .......................................................

2.7

3.1
6.3
4.9

5.9
9.0
6.3

.6
1.4

35

Chart 16.
Output per hour of all persons, unit labor costs,
and compensation per hour in the business economy, 1960-86

Percent change from previous year

12

Compensation
per hour

4

-4
1960

S ource: B ureau of Labor S tatistics




1965

1970

1975

1980

1985

1990

36




C h a n g e s in p ric e s are c lo s e ly
a s s o c ia te d w ith c h a n g e s in u n it lab o r
costs

Changes in unit labor costs generally
are by far the most important compo­
nent of price changes, as the chart
shows. Thus, if productivity growth miti­
gates increases in unit labor costs, this
will in turn mitigate increases in prices.
During most of the 1960’s and after
1982, unit labor costs rose little— mainly
because productivity increases kept
pace with the growth in hourly compen­
sation. Prices reflected the small in­
creases in unit labor costs. During the
1970’s, hourly compensation increased
at a faster rate while productivity growth
slowed, resulting in increasing unit labor
costs and prices. This pattern persisted
until 1981, after which productivity once
again advanced at higher rates, reduc­
ing the rate of increase of unit labor
costs and of prices.

37

Chart 17.
Composition of price change, business economy, 1960-86

Percent change
12
10
8

Implicit
price
deflator

6
4
2
0
-2

12
10

8

Unit
nonlabor
payments

6
4
2
0
-2

1960

1965

S ource: B ureau of Labor S tatistics




1970

1975

1980

1985

1990

38




R apid a d v a n c e s in p ro d u c tiv ity u s u a lly
m o d e ra te in cre a s e s in u n it la b o r c o sts
and prices

The rate of productivity advance in a
sector is generally reflected in the cost
and price trends of the sector’s output.
Unit labor costs and prices usually rise
more in sectors where productivity
grows slowly than in sectors where it is
growing rapidly.
In the 1980’s (from 1979 to 1986),
productivity in manufacturing increased
at an average annual rate of 3.5 per­
cent. This in large measure offset a 6.4percent advance in compensation per
hour and resulted in the comparatively
low unit labor cost increase of 2.8 per­

cent a year and a rate of price increase
of 3.3 percent. The farm sector showed
a similar, if more pronounced pattern.
So did the communications sector, al­
though here price trends did not fully re­
flect favorable unit cost trends.
By contrast, the transportation,
utilities, and mining sectors illustrate
how large increases in unit labor costs
result when productivity gains do not
offset strong increases in hourly com­
pensation. Strong price increases also
occurred in these sectors.

39

Chart 18.
Output per hour of all persons, compensation per hour,
unit labor costs, and prices in major sectors, 1979-86

Average annual percent change

Output per hour

Unit labor costs

Compensation per hour

Prices

Farm
Communications

I

Electric, gas, and
sanitary services

I

Transportation
Mining
Manufacturing
Trade
-10

-5

Source: Bureau of Labor Statistics




10

15

-10

-5

0

5

10

15

40




Changes in hourly compensation and
in productivity are not closely related

In contrast to prices, the factors in­
fluencing changes in hourly compensa­
tion in individual industries appear to be
independent of the factors influencing
changes in productivity in these indus­
tries. This is shown in the chart by the
high degree of uniformity in the in­
creases in compensation per hour,
compared with the changes in output
per employee hour. Hourly compensa­
tion increased about as much between
1972 and 1985 in industries with de­
clines in productivity growth, such as
machine tools and millwork, as in indus­
tries with relatively high rates of produc­
tivity growth, such as soft drinks and
tires and inner tubes.

41

Chart 19.
Output per employee hour and compensation per employee hour,
selected manufacturing industries, 1972-85

Average annual percent change
Output per employee hour

Compensation per hour
Poultry dressing & processing
Grain mill products
Bakery products
Bottled and canned soft drinks
Hosiery
Millwork
Paper and plastic bags
Synthetic fibers
Pharmaceutical preparations
Soaps and detergents
Industrial organic chemicals
Petroleum refinery
Tires and inner tubes
Footwear
Steel
Primary aluminum
Metal cans
Machine tools
Pumps and compressors
Motors and generators
Motor vehicles

S o u rc e : B u re a u o f L a b o r S ta tis tic s




42




Prices generally rise more rapidly
when productivity increases slowly

A generally inverse relation prevails
between industry price change and pro­
ductivity change. Between 1965 and
1985, prices tended to decline or to in­
crease slowly in such industries as tele­
phone
communications,
women’s
ready-to-wear stores, and synthetic fib­
ers, where productivity rose at aboveaverage rates. In contrast, prices rose
strongly in such industries as concrete
products, bakery products and steel
foundries, where productivity change
over the period was comparatively low.

43

Chart 20.
Relation between output per employee hour and prices,
selected industries, 1965-85

Average annual percent change
Prices

S o u rc e : B u re a u o f L a b o r S ta tis tic s




44




No clear relationship exists between
changes in productivity and changes
in employment

Increases in productivity are often be­
lieved to be associated with decreases
in employment. This is not necessarily
so. Over the 1973-86 period, employ­
ment rose in a number of industries as
productivity increased. Over the same
period, however, employment dropped
with advancing productivity in nearly
three-fifths of all industries measured.
Productivity gains in these industries
were often traceable to cutbacks in mar­
ginally efficient capacity (as in iron and
copper mining, steel, and some chemi­
cals), as well as to technological im­
provements (as in fluid milk and non­
wool yarn mills). Output growth was evi­
dently not large enough to offset em­
ployment losses.

45

Chart 21.
Output per employee hour and employment
selected industries, 1973-86

Average annual percent change
Employment

S e m ic o n d u c to rs a n d #
re la te d d e v ic e s

#

In s tru m e n ts to
# m e a s u re ele ctricity

•
#

E atin g an d
drinking p la c e s ®

®

•

M is c e lla n e o u s

®
•

•

•

B itu m in o u s co al an d
lignite m ining
0

•
•

plastics prod uc ts

•

^

•

N,

•

L a u n d ry a n d

•

^

c le a n in g s e r v i c e s #

•

j

M o to r v e h ic le s a n d .

# ® e q u ip m e n t

T e le p h o n e

^

c o m m u n ic a tio n s

<
•
w
•

%

•

•

P rim a ry

^
•

•
^

•

0

®

G ra in mill products
#

%

a lu m in u m ^

•
%

^

•

statio n s

^9

>

•

G a s o lin e s e rv ic e

# #
•

F o o tw e a r

0

•

T ire s a n d
^

R a ilro a d tra n s p o rta tio n ,
r e v e n u e traffic

•

in n er tu b e s

R a d io a n d te levis io n
receivin g se ts

S te e l

•

Iron m inin g,

0

u s a b le o re
•

________________I_______________

-4

-2

_______________ I________________I________________I________________ I________________I________________I________________

0

2

4

6

Output per employee hour

S o u rc e : B u re a u o f L a b o r S ta tis tic s




8

10

12

14

46




Similar rates of change in productivity
often reflect differing rates of change
in output and employment

The three industries shown have
similar productivity growth rates—
around 3.5 percent for the 1960-85
period. Despite the similarity, trends in
employment varied, rising substantially
in gas utilities, declining in the pulp and
paper industry, and remaining virtually
unchanged in drug and proprietary
stores.
The relation between labor productiv­
ity growth and employment trends is

basically determined by the climate in
which output growth in a given industry
occurs. Rapid output growth over the
25-year period, as in gas utilities, was
accompanied by comparatively large in­
creases in employment. Smaller gains
in output, as in pulp and paper, were
associated with employment declines.
Where output rose at a fairly moderate
rate, as in drug stores, virtually no
change in employment resulted.

47

Chart 22.
Output and employment in selected industries with
similar productivity growth, 1960-85

Average annual rate of change

Gas utilities

S o u rc e : B u re a u o f L a b o r S ta tis tic s




Drug & proprietory stores

Pulp and paper

48




Real hourly compensation has
generally advanced in line with
productivity

Labor has shared in the gains from
productivity over the long run. Hourly
compensation adjusted for changes in
purchasing power— real hourly compen­
sation— has risen at about the same
rate as output per hour. In recent years,
however, productivity increases have
greatly exceeded gains in real hourly
compensation.

A verage annual percent change
Period
O utput per hour
of all persons

Real com pensation
per hour

1950-86 ..................................................................
1950-73 ...............................................................

2.1
2.7

2.0
2.9

1973-86 ..................................................................
1973-79 ...............................................................
1979-86 ...............................................................

1.0
.6
1.4

.3
.5
.2

49

Chart 23.
Output per hour of all persons and real compensation
per hour in the business economy, 1950-86

1950

1955

1960

S o u rc e : B u re a u o f L a b o r S ta tis tic s




1965

1970

1975

1980

1985

1990

50




Productivity advance has resulted
primarily in higher incomes and
consumption rather than in additional
leisure

One of the benefits of productivity im­
provement is that it makes an increas­
ing amount of goods and services avail­
able for consumption. This is shown by
the steady increase in gross domestic
product per person throughout the
1950-86 period. (Employment rose rela­
tive to population from the mid-1960’s
onward; since then, the growth in
domestic product per capita has ex­
ceeded the growth in productivity.)
Some of the advance in productivity
may be realized in the form of leisure
(fewer hours worked). In addition to
shorter work weeks, earlier retirement
or later entry into the labor force may be

options which are preferred over goods
and services. Had all the productivity
gains of the past third of a century been
allocated to increasing product per
capita, its growth rate would have been
2.1 percent annually over the 1950-86
period, rather than 1.7 percent. In con­
trast, had the productivity gains all been
taken in the form of more leisure, aver­
age weekly hours would have de­
creased at an annual rate of 2.1 per­
cent, instead of 0.4 percent. Clearly, in­
creased income and, with it, increased
consumption, had generally greater ap­
peal than increased leisure.

A verage annual percent change
Period
G ross dom estic product
per capita

A verage w eekly
hours

...............................................

1.7

-0.4

1950-73 .............................................
1973-79 .............................................
1979-86 .............................................

2.3
.1
1.0

-0.4
-0.5
-0.3

1950-86

51

Chart 24.
Gross domestic product per capita and average weekly hours,
in the business economy, 1950-86

Index, 1950 = 100

Ratio scale

Source: Bureau of Economic Analysis and Bureau of the Census, U.S. Department of Commerce;
Bureau of Labor Statistics




52




Levels of U.S. capital formation per
employed person have remained
above those of other industrial
countries

International comparisons of the
amount of real resources countries are
devoting to increasing their capital
stocks, and thereby to improving labor
productivity, are difficult to make. The
data should be considered as approxi­
mations only.
For the 1970-85 period as a whole,
the United States averaged a higher
level of real capital formation per em­
ployed person than any of the other
countries shown, except Canada. Dur­
ing the period 1979-85, again only
Canada’s level of capital formation per
employed person ran ahead of the
United States.
Since these estimates of comparative
real capital formation relate to the total

economy, they reflect differences in in­
dustrial structure as well as in industryspecific fixed assets. For example,
Canada has a much larger share of its
investment in such capital-intensive ac­
tivities as waterworks and electric, gas,
and steam utilities than the other coun­
tries.
Per employed person, the United
States had higher levels of investment
in producers’ durable equipment than
all the other countries shown; however,
U.S. investment in nonresidential build­
ing was lower than in Canada and
Japan.

Comparative levels of capital formation, 1979-85

Country

United States ..........................................
C anada ......................................................
Japan ........................................................
France ......................................................
G e rm a n y ....................................................
I t a ly .............................................................
United K ingdom .....................................

P roducers’ durable equipm ent
per em ployed person

100.0
73.2
72.9
95.0
94.1
58.6
66.1

Nonresidential building
per em ployed person

100.0
158.7
121.9
75.4
86.6
69.1
49.7

53

Chart 25.
Comparative levels of nonresidential capital formation per employed
person, selected countries, 1979-85
Averages for periods
Index, United States = 100
120

United States
100

60

I I I I

40

20

Canada

Japan

France

Germany

Italy

United Kingdom

Source: Irving Kravis et al., A System for International Comparisons of Real Product and Purchasing Power, and
Bureau of Labor Statistics




54




The growth in U.S. gross fixed capital
formation per employed person has
lagged behind that of other major
industrial countries

While the level of capital formation
per employed person in the United
States remains above that of other
major industrial countries (except
Canada), its growth rate has remained
lower than that of Japan and the United
Kingdom. Compared with 1970-79,
however, the rate for 1979-85 improved
significantly for the United States (as
also for the United Kingdom) while it re­
ceded for Japan, France, and Germany.

55

Chart 26.
Growth rates in gross fixed capital formation per employed person,
selected countries, 1970-79 and 1979-85

S o u rc e : B u re a u o f L a b o r S ta tis tic s







As a percent of gross national product,
U.S. research and development
expenditures generally have run ahead
of other major industrial countries

Statistics on research and develop­
ment activity are not as readily available
for other countries as they are for the
United States. Nevertheless, sufficient
information exists for some compari­
sons between the United States and its
major trading partners.
R&D expenditures as a proportion of
GNP were higher in the United States
than in the four other industrial coun­
tries compared until the mid-1970’s.
The rates for Germany and Japan then
began to catch up with the U.S. rate.

Data for recent years indicate that the
proportion of GNP devoted to overall
R&D expenditures is similar in the coun­
tries covered here.
More than half of U.S. R&D funds are
provided by the Government, and more
than half of these funds are for defense
and space objectives. When R&D ex­
penditures for national defense and
space are excluded from the compari­
sons, Japan and Germany show the
highest ratios of R&D expenditures to
output.

57

Chart 27.
Expenditures for research and development as a percent of gross
national product, all R&D and nondefense R&D, selected countries, 1961-86

P e rc e n t

1971

1975

S o u r c e : N a t i o n a l S c i e n c e F o u n d a t io n




1980

1985

1990

5
8




The number of U.S. scientists and
engineers engaged in R&D is the
highest among industrial countries

In

p r o p o r t io n

to

its

la b o r f o r c e ,

th e

U n it e d S t a t e s h a s a g r e a t e r n u m b e r o f
s c ie n t is t s a n d e n g i n e e r s e n g a g e d in r e ­
s e a rc h

and

d e v e lo p m e n t

th a n

o th e r

la r g e in d u s t r ia l c o u n t r ie s , b u t t h e d i f f e r ­
e n c e h a s n a r r o w e d . In 1 9 7 6 , t h e U n it e d
S t a t e s h a d 5 5 s c ie n t is t s a n d e n g i n e e r s
in R & D p e r 1 0 , 0 0 0 p e r s o n s in t h e la b o r
f o r c e w h ile t h e o t h e r c o u n t r i e s h a d 3 0 to
4 8 . T h e p r o p o r t io n h a s s in c e in c r e a s e d
in

th e

U n it e d

S ta te s

but

s u b s t a n t ia lly

m o r e in t h e o t h e r c o u n t r ie s , p a r t ic u la r ly
in G e r m a n y a n d J a p a n .

59

Chart 28.
Scientists and engineers engaged in R&D,
selected countries, 1976 and 1986

S o u rc e : B u re a u o f L a b o r S ta tis tic s










Appendix.
Supporting data for charts

61

Table 1. Output per hour of all persons in the business economy,1 1909-87
(Index, 1909 = 100)
Year

O utput per hour

1909
1910
1911
1912
1913
1914

100.0

O utput per hour

1949

198.6

1950
1951
1952
1953
1954

215.1
223.8
230.7
239.2
243.0

1955
1956
1957
1958
1959

250.3
253.7
260.3
268.0
276.9

1960
1961
1962
1963
1964

281.5
291.4
301.9
313.8
327.5

1965
1966
1967
1968
1969

337.2
346.5
355.7
365.3
365.5

1970
1971
1972
1973
1974

368.1
380.0
391.5
399.2
390.7

1975
1976
1977
1978
1979

398.3
409.3
416.3
419.7
414.6

1980
1981
1982
1983
1984

413.2
419.2
417.5
428.8
439.5

1985
1986
1987

447.6
455.2
459.3

105.6

101.2
103.0
103.3
100.3

1915
1916
1917
1918
1919

98.0
107.0
108.2

1920
1921
1922
1923
1924

101.5
104.0
113.3
117.8
121.4

1925
1926
1927
1928
1929

126.2
129.7
130.0
129.9
133.8

1930
1931
1932
1933
1934

129.9
125.6
120.9
117.7
129.1

1935
1936
1937
1938
1939

134.4
140.3
143.0
145.5
150.0

1940
1941
1942
1943
1944

155.9
167.6
176.7
182.6
188.9

1945
1946
1947
1948

194.3
186.8
187.0
196.5

'Total private econom y until 1946.

Year

99.7

100.6

62




Table 2. Output per hour of all persons in the total business and nonfarm business
economy, 1960-87
(Index, 1960 = 100)
O utput per hour
Year
B usiness

N onfarm business

1960
1961
1962
1963
1964

......................................................
......................................................
......................................................
......................................................
......................................................

100.0
103.0
107.2
111.5
116.3

100.0
103.1
106.5
110.3
114.7

1965
1966
1967
1968
1969

......................................................
......................................................
......................................................
......................................................
......................................................

119.8
123.1
126.4
129.8
129.9

117.6
120.1
122.8
126.0
125.4

1970
1971
1972
1973
1974

......................................................
......................................................
......................................................
......................................................
......................................................

130.8
135.0
139.1
141.8
138.8

125.7
129.5
133.5
135.9
132.9

1975
1976
1977
1978
1979

......................................................
......................................................
......................................................
......................................................
......................................................

141.5
145.4
147.9
149.1
147.3

135.2
138.7
140.9
142.1
139.8

1980
1981
1982
1983
1984

......................................................
......................................................
......................................................
......................................................
......................................................

146.8
148.9
148.3
152.3
156.1

139.2
140.6
139.8
144.4
147.4

1985 ......................................................
1986 ......................................................
1987 ......................................................

159.0
162.0
163.5

149.1
151.5
152.7




63

Table 3. Output per hour of all persons by major sector, 1960-86
(Index 1960 = 100)

Year

Farm

Mining

M anufac­
turing

Transp or­
tation

C om m uni­
cations

Electric,
gas, and
sanitary
services

Trade

1960
1961
1962
1963
1964

....
....
....
....
....

100.0
105.0
107.4
112.5
114.5

100.0
107.0
112.2
119.6
122.6

100.0
102.8
107.2
114.4
120.0

100.0
102.5
106.0
112.1
113.6

100.0
106.4
113.3
120.9
124.3

100.0
105.6
111.4
115.6
123.4

100.0
101.9
107.7
112.0
115.5

1965
1966
1967
1968
1969

....
....
....
....
....

120.9
121.4
135.2
131.7
143.8

127.1
134.1
142.9
150.6
152.3

123.1
124.7
124.6
128.7
130.2

120.3
127.4
125.1
130.7
134.0

128.6
133.9
141.8
149.3
152.5

125.6
133.1
135.8
146.9
151.1

119.8
125.0
129.0
134.2
132.6

1970
1971
1972
1973
1974

....
....
....
....
....

160.7
173.1
172.0
173.0
172.7

159.7
161.5
158.1
153.6
139.5

130.2
137.5
143.4
150.4
145.9

133.1
134.4
142.9
149.7
149.7

158.0
169.2
178.0
185.4
190.5

150.3
163.2
164.5
179.8
182.1

133.7
137.9
145.2
149.2
145.1

1975
1976
1977
1978
1979

....
....
....
....
....

192.5
193.6
196.6
190.0
207.7

125.0
116.4
112.0
109.1
99.0

149.6
156.4
161.1
163.4
163.3

148.1
156.6
160.0
163.2
159.4

206.8
219.3
225.7
234.7
237.9

197.3
194.7
192.2
186.5
180.5

147.4
151.0
154.4
156.3
156.0

1980
1981
1982
1983
1984

....
....
....
....
....

213.7
259.7
275.5
218.2
252.5

95.1
87.7
86.0
96.6
99.5

163.3
166.9
170.6
180.5
190.4

154.2
147.2
140.3
145.4
151.1

248.8
260.0
266.5
301.1
286.3

181.6
186.3
188.2
192.5
206.5

153.4
154.9
156.5
160.1
167.0

1985 ___
1986 . . . .

320.8
354.4

102.1
111.0

200.1
207.5

147.2
152.6

302.7
312.8

203.9
197.8

172.8
179.6

64




Table 4. Output per employee hour in selected industries, 1960-86
A verage annual rates
of change
1960-86

Industry

A verage annual rates
of change
1960-86

S em iconductors and related de vice s1
W et corn m illing2 .....................................
Malt b e v e ra g e s ........................................
Radio and television receiving
s e t s ........................................................
Synthetic f ib e r s ........................................

13.1
8.0
6.4

M eat packing plants3 ............................
Iron m ining, crude o r e ............................
Drug and proprietary stores ................

3.3
3.3
3.2

6.3
6.2

H o s ie r y ......................................................
Telephone c o m m u n ic a tio n s ................
W om e n’s ready-to-w ear
stores3 ....................................................
Air transportation ...................................
Appliance, radio, television and
music stores3 .....................................

6.0
5.7

Furniture, hom e furnishings and
equipm ent stores3 ...............................
E lectric utilities ........................................
C opper m ining, recoverable
m e t a l......................................................
Tires and inner tubes ............................
Canned fruits and veg etab le s4 ............

Fluid m ilk4 .................................................
Railroad transportation, revenue
t r a f f ic ......................................................
Household refrigerators and
fre e z e r s .................................................
Petroleum pipelines ..............................
A lum inum rolling and draw ing ............

4.7

Industry

Industrial organic chem icals,
N.E.C .2 .................................................
M ajor household a p p lia n c e s ................
C eram ic w all and floor tile4 ...................
Household cooking e q u ip m e n t............
Fam ily clothing stores3 ..........................

5.7
5.2
5.1

3.1
3.0
3.0

Poultry dressing and processing2 . . . .
Red m eat products3 ...............................
M otor vehicles and e q u ip m e n t............
Household appliances, N .E .C ...............
Softw ood veneer and plyw ood6 .........

2. 9
2.9
2.8
2.8
2.8

D epartm ent stores3 ...............................
P etroleum refining .................................
C ig a r s .........................................................
Railroad transportation, carm iles ......................................................
M etal cans ...............................................

2.8
2.8
2.8

4.5
4.5
4.3
4.2

4.1
4.0
4.0
4.0
3.8

H ousehold laundry e q u ip m e n t............
Cotton and synthetic broad woven
fa b rics1 .................................................
C orrugated and solid fiber
boxes ....................................................
G asoline service s ta t io n s .....................
Apparel and accessory stores3 ............

3.8

C opper mining, crude o r e .....................
Bottled and canned soft d r in k s ............
Pharm aceutical preparations5 ............
Grain mill products2 ...............................
Paper, paperboard, and pulp
m ills ........................................................

3.7
3.6
3.5
3.5

Veneer and plyw ood4 ............................
Prim ary c o p p e r ........................................
Prim ary copper, lead, and
z i n c ........................................................
M attresses and bedsprings ................
Prepared feeds fo r anim als and
fow ls2 ...................................................

3.5
3.4

Instrum ents to measure
electricity6 ............................................
Flour and other grain mill
products ...............................................

3.2
3.1

3.7
3.7
3.7
3.7

3.5

3.4
3.4
3.4

3.3
3.3

P reserved fruits and
vegetables4 ..........................................
S tructural clay products ........................
C lay construction p r o d u c ts ...................
Iron m ining, usable o r e ..........................
Clay r e fra c to rie s ......................................
Flour (including flou r m ixes) and
oth er grains2 ........................................
C osm etics and other toiletries4 ............
M en’s and bo ys’ clothing
stores3 ....................................................
Crushed and broken s t o n e ...................
Hydraulic cem ent ...................................

2.7
2.7

2.7
2.7
2.6
2.6
2.6

2.6
2.6
2.6
2.5
2.5

Paints and allied products ...................
A lkalies and c hlorine6 ............................
G as and electric u t ilit ie s ........................
N onwool yarn m i l l s .................................
Saw m ills and planing mills,
general .................................................

2.5
2.4
2.4
2.4

G lass c o n ta in e rs ......................................
C opper rolling and d r a w in g ...................
Upholstered household
furniture4 ...............................................
Hardw ood ven eer and plyw ood6 .........
Autom otive stam pings6 ..........................

2.3
2.3
2.2
2.2
2.2

Metal household furniture4 ...................
Soaps and detergents4 ..........................
P aper and plastic bags4 ........................

2.2
2.2
2.1

2.4




65

Table 4. Output per employee hour in selected industries, 1960-86 (continued)
Industry

A verage annual rates
of change
1960-86

Farm and garden m achinery4 ..............
H ousehold furniture ..............................

2.1
2.1

Metal office furniture4 ............................
M iscellaneous plastics
products6 ...............................................
Sugar ........................................................
S t e e l..........................................................
Cereal breakfast foods2 .......................

2.1

Concrete products4 .................................
Sw itchgear and sw itchboard
apparatus5 ..........................................
Furniture and home furnishings
stores3 ....................................................
Rice m illing2 ............................................
Sausages and other prepared
m eats3 ...................................................
Lighting fixtures7 .....................................
Electric la m p s ..........................................
Bakery products4 ...................................
Raw and refined cane s u g a r ................
O ffice furniture ........................................

2.0

2.1
2.1
2.0
2.0

2.0
2.0
2.0
2.0
1.9
1.9
1.9
1.9
1.9

Industry

A verage annual rates
of change
1960-86

W ood office furniture4 ............................
W ood kitchen cabinets6 .......................
Com m ercial banking8 ............................

1.2
1.2
1.2

Ball and roller b e a rin g s ..........................
Metal doors, sash, and trim 8 ................
R efrigeration and heating
equipm ent8 ..........................................
Metal stam pings2 ...................................
V alves and pipe fittings4 .......................

1.1
1.1
1.1
1.0
1.0

Pumps and pum ping
equipm ent6 ..........................................
Gas u tilitie s ...............................................
Air and gas com pressors6 ...................
M achine tool accessories2 ...................
Fabricated structural m etal4 ................

.9
.8
.8
.8
.8

Ready-m ixed concrete4 .......................
Coal m in in g ...............................................
B itum inous coal and lignite
m in in g ...................................................
Hand and edge tools4 ............................
M illw ork4 ...................................................

.7
.6
.6
.6
.5

N onm etallic minerals, except
fuels ......................................................
Lawn and garden equipm ent6 ..............
Primary a lu m in u m ...................................
Franchised new car d e a le r s ................
W ood household furniture4 ...................

1.9
1.9
1.8
1.8
1.8

Liquor stores1 ..........................................
Beauty sho ps1 ..........................................
Metal cutting m achine tools ................
Inorganic pigm ents6 ..............................
Steel fo u n d r ie s ........................................

.5
.5
.4
.4
.4

G ray iron fo u n d r ie s .................................
Brick and structural clay tile ................
Total tobacco p r o d u c ts ..........................
Pum ps and com pressors4 ...................
Folding paperboard boxes5 ................

1.7
1.7
1.7
1.7
1.7

Footwear .................................................
Retail food s t o r e s ...................................
Laundry and cleaning
s e r v ic e s .................................................
Eating and drinking p la c e s ...................
Beauty and barber sho ps1 ...................

.4
.3

Motors and generators4 .......................
Intercity trucking4 ...................................
Heating equipm ent, except
electric6 .................................................
T ransform ers5 ..........................................
Internal com bustion engines,
N.E.C .8 .................................................

1.7
1.7

Shoe stores3 ............................................
Hotels, motels, and tourist
courts ...................................................
Construction m achinery and
e q u ip m e n t............................................
Beet sugar ...............................................
Intercity trucking, general
freight4 .................................................
Cigarettes, chewing and smoking
to b a c c o .................................................
H ardw are sto re s1 ...................................

1.6
1.6
1.6
1.6
1.6
1.5
1.5
1.5

Farm m achinery and
equipm ent6 ..........................................
M achine t o o l s ..........................................
Industrial inorganic
chem icals6 ..........................................
Oilfield m achinery and
equipm ent3 .................................
Fabricated pipe and fittings4 ................
Industrial inorganic chem icals,
N.E.C.6 .................................................
Metal stam pings, N .E .C .6 .....................
C lass I bus carriers4 ..............................
Metal form ing m achine to o ls ................
Mining m achinery and
equipm ent6 ..........................................
A utom otive repair sho ps1 .....................

1.5
1.3

1T972-86

51963-86

21963-85

61972-85

31967-86

71961-85

41960-85

81967-85

.3
.3
.2

.1
.1
0.0
-0.1
-0.2

-0.4
-0.6
-0.7
-1.0
-1:0
-1.2

66

Table 5. Productivity rates in selected industries, 1973-79 and 1979-86
(Average annual rates)
Advance/
falloff from
1973-79 to
1979-86

Industry

1973-79

1979-86

Iron mining, usable o r e .................
Copper mining, recoverable
m e ta l.............................................
Bituminous coal and lignite
m in in g ...........................................
Nonmetallic minerals, except
fuels .............................................
Red meat p ro d u c ts ........................

-0.3

7.1

7.5

5.1

14.5

9.4

-3.7

7.4

11.1

1.8
4.0

1.6
2.5

-0.1
-1.5

Poultry dressing and
processing1 ..................................
Fluid milk1 .......................................
Preserved fruits and
vegetables1 ..................................
Grain mill products1 .....................
Bakery products1 ..........................

5.0
4.4

4.5
4.7

-0.5
.3

1.8
3.9
.7

2.6
6.1
2.8

.8
2.2
2.1

1.3
7.1

.9
3.2

-0.4
«-3.8

Sugar .............................................
Malt beverages..............................
Bottled and canned soft
drinks ...........................................
Total tobacco p ro d u c ts .................
Cotton and synthetic broad
woven fa b ric s ..............................

5.7
2.4

5.4
2.0

-0.3
-0.4

4.7

3.7

-1.0

H o s ie ry ...........................................
Nonwool yarn m ills ........................
Sawmills and planing m ills ...........
Millwork1 .........................................
Wood kitchen cabinets1 ...............

5.7
3.3
1.2
-1.3
3.3

1.3
4.6
5.8
-1.5
-0.7

-4.4
1.4
4.7
-0.2
-4.0

Veneer and plywood1 ...................
Household furniture .....................
Office furniture ..............................
Paper, paperboard, and
pulp m ills .......................................
Paper and plastic bags1 ...............

2.0
1.2
3.8

4.3
2.3
1.3

2.3
1.1
-2.4




2.9

3.1
2 .2

1.6

Industry

1973-79

1979-86

Folding paperboard boxes . . . .
Corrugated and solid fiber
boxes .....................................
Industrial inorganic
chemicals1 ............................
Synthetic fib e rs ..........................
Pharmaceutical preparations . .

1.8

-0.3

-2.1

3.3

2.4

-1.0

1.4
6.9
3.3

0.0
3.5
1.5

-1.5
-3.4
-1.8

.6

-1.0

-1.6

1.6
3.9

-0.3
2.9

-1.9
-1.0

3.0
1.7

1.0
2.5

-2.1
.8

Tires and inner tubes ...............
Miscellaneous plastics
products1 ................................
Footwear ..................................
Glass containers........................
Hydraulic c e m e n t......................

2.7

5.8

3.2

1.8
.5
1.1
.9

3.3
1.4
4.1
6.5

1.5
.8
3.0
5.6

Structural clay products ...........
Concrete products1 ...................
S te e l...........................................
Gray iron fo u n d rie s...................
Steel fo u n d rie s ..........................

1.6
.6
.4
.7
-1.3

2.8
1.9
5.2
1.9
-0.7

1.2
1.3
4.8
1.2
.6

Primary copper, lead, and
z in c .........................................
Primary alum inum .....................
Copper rolling and drawing . . . .
Aluminum rolling and drawing .
Metal cans ................................

2.7
-0.6
2.5
1.7
4.5

10.0
4.3
5.2
3.6
3.6

7.3
4.9
2.6
-0.9

.7

-2.3

-3.0

Soaps and detergents1 .............
Cosmetics and other
toiletries1 ................................
Paints and allied products1 . . . .
Industrial organic chemicals,
N.E.C.1 ..................................
Petroleum refining ...................

1.9

.2

.6

Advance/
falloff from
1973-79 to
1979-86

Hand and edge tools1 ...............

67

Table 5. Productivity rates in selected industries, 1973-79 and 1979-86 (continued)
(Average annual rates)

Industry

Heating equipment, except
electric1 .......................................
Fabricated structural metal1 ........
Metal doors, sash, and
trim1 ...........................................
Metal stampings1 ..........................
Valves and pipe fittings1 ...............
Fabricated pipe and fittings1 ........
Internal combustion engines,
N.E.C.1 ......................................
Farm and garden machinery1 . . . .
Construction machinery and
equipm e nt..................................
Mining machinery and
equipment1 ................................
Oilfield machinery and
equipm e nt..................................
Machine to o ls ................................
Machine tool accessories1 ...........
Pumps and compressors1 ...........
Ball and roller be aring s.................
Refrigeration and heating
equipment1 ................................
Transformers ................................
Switchgear and switchboard
apparatus ..................................
Motors and generators1 ...............
Major household appliances........
Electric la m p s ................................
Lighting fixtures1 ............................
Radio and television receiving
s e t s .............................................
Semiconductors and related
devices ......................................

11979-85




Advance/
falloff from
1973-79 to
1979-86

1973-79

1979-86

3.9
-1.4

0.3
2.1

-3.6
3.5

1.1
1.2

2.7
1.1

1.6
-0.1

1.0
-3.0

0.0
.4

-1.0
3.3

2.2
.8

.6
1.0

-1.5
.2

1.3

1.0

-0.3

-3.2

.4

3.6

-1.0

-4.8
-1.2
-1.9

-3.7
-0.1
-1.3
-0.4

-1.1

-0.6
1.3

.5

.9
-1.1

-1.6

-0.2

1.1

2.4

-1.5

1.4
-3.9

.7

2 .2

.1

2.1

3.2

3 .6

2.8

3.9

.4
1.1

1.3

2.3

1.0

5.6

14.1

8.6

18.2

7.1

-11.1

1.4
2.0

Industry

Advance/
falloff from
1973-79 to
1979-86

1973-79

1979-86

3.3

4.7

1.4

Motor vehicles and
e q uipm e nt..............................
Instruments to measure
electricity1 ..............................
Railroad transportation, revenue
tra ffic ......................................
Class I bus carriers1 .................
Intercity trucking1........................

1.9

4.7

2.8

2.1
-1.6
1.1

8.7
-1.7
.5

6.6
-0.1
-0.6

Air transportation .....................
Petroleum pipelines .................
Telephone communications . . .
Electric u tilitie s ..........................
Gas u tilitie s ................................

5.3
1.1
7.2
1.9
-0.2

4.2
2.0
5.2
0.0
-4.5

-1.1
.9
-2.0
-1.9
-4.3

Hardware s to re s .......................
Department stores ...................
Retail food s to r e s .....................
Franchised new car dealers . . .
Gasoline service s ta tio n s ........

2.0
3.5
-1.4

.4
3.9
-0.6

-1.6
.5

.9

2.2

1.4

4.1

3.0

-1.1

2.1

5.0

3.0

2.2

1.9
-0.2

1.3
-0.7

4.1
-0.7
-1.0
1.0

1.6

2 .3

.7

2.2

0.0

-2 .2

.4
.9

-1.2

-1.6
-2.0

Apparel and accessory
stores ....................................
Furniture, home furnishings and
equipment stores .................
Eating and drinking places . . . .
Drug and proprietary stores . . .
Liquor s to re s ..............................
Commercial banking1 ...............
Hotels, motels, and tourist
courts ....................................
Laundry and cleaning
services..................................
Beauty and barber s h o p s ........
Automotive repair s h o p s ...........

-0.5

-0.9

-1.1
-0.7

.8

-2 .3
1.8

.2

68




Table 6. Output per hour of all persons, output per unit of capital, and multifactor
productivity, private business sector, 1960-86
(Index i960 = 100)
Year

Output per hour
of all persons

Output per unit
of capital

Multifactor
productivity

1960
1961
1962
1963
1964

.................................................
.................................................
.................................................
.................................................
.................................................

100.0
103.6
107.4
111.7
116.6

100.0
99.9
102.4
104.2
106.9

100.0
102.3
105.6
109.0
113.0

1965
1966
1967
1968
1969

.................................................
.................................................
.................................................
.................................................
.................................................

120.0
123.3
126.6
130.2
130.3

109.0
109.0
106.6
106.7
104.9

115.9
117.9
118.9
121.1
120.4

1970
1971
1972
1973
1974

.................................................
.................................................
.................................................
.................................................
.................................................

131.3
135.6
139.7
142.5
139.5

99.8
99.1
101.7
103.1
96.7

119.0
121.2
124.7
126.9
122.3

1975
1976
1977
1978
1979

.................................................
.................................................
.................................................
.................................................
.................................................

142.3
146.2
148.6
149.8
147.9

91.9
95.2
98.0
99.9
97.8

121.7
125.4
128.0
129.6
127.6

1980
1981
1982
1983
1984

.................................................
.................................................
.................................................
.................................................
.................................................

147.4
149.5
149.0
153.2
157.0

92.3
90.5
84.9
86.6
90.9

124.7
125.1
122.0
125.0
129.3

1985 .................................................
1986 .................................................

159.9
163.0

90.9
90.9

130.8
132.4




69

Table 7. Output per hour of all persons, capital effects, and multifactor productivity,
selected periods, 1960-86
(Average annual rates, in percent)

Year

Output per hour
of all persons

Multifactor productivity
growth

Capital
effects

Private business
1960-73 ...................................................
1973-79 ...................................................
1979-86 ...................................................

2.7
.6
1.4

1.8
.1
.5

0.9
.5
.9

Manufacturing
1960-73 ...................................................
1973-79 ...................................................
1979-86 ...................................................

3.2
1.4
3.5

2.4
.5
2.6

.8
.9
.9

70




Table 8. Output per hour and multifactor productivity in selected manufacturing
industry sectors, selected periods
(Average annual rates)
1960-83
Industry

Total
manufacturing . . . .
Food and kindred
p ro d u c ts ...............
Tobacco
manufactures . . . .
Textile mill
p ro d u c ts ...............
Apparel and other
textile products .. .
Lumber and wood
p ro d u c ts ...............
Furniture and
fixtures .................
Paper and allied
p ro d u c ts ...............
Printing and
pu b lish in g .............
Chemicals and allied
p ro d u c ts ...............
Petroleum and coal
p ro d u c ts ...............
Rubber and
miscellaneous
plastics products ..
Leather and leather
p ro d u c ts ...............
Stone, clay, and
glass products . . .
Primary metal
industries .............
Fabricated metal
p ro d u c ts ...............
Machinery, except
e le c tric a l...............
Electrical and
electronic
equipm ent.............
Transportation
equipm ent.............
Instruments and
related products . .
Micellaneous
manufacturing . . . .

1960-73

1973-83

Output per
hour

Multifactor
productivity

Output per
hour

Multifactor
productivity

Output per
hour

2.4

1.1

2.9

1.7

1.6

.3

2.8

.6

2.6

.8

3.1

.5

1.8

-0.3

2.4

.8

1.1

-1.7

4.2

1.6

4.2

1.6

4.2

1.7

2.5

1.0

2.1

1.1

3.0

.9

2.9

1.5

4.3

3.0

1.1

-0.5

2.3

.8

2.8

1.0

1.7

.4

3.0

.9

3.6

1.4

2.3

.2

1.7

.2

2.6

.6

.6

-0.3

3.1

.8

4.9

1.7

.8

-0.4

1.9

.2

4.5

1.1

-1.3

-0.9

2.1

.9

3.2

1.5

.6

.7

1.9

.5

2.3

.7

1.3

.2

1.4

.1

2.2

.7

.5

-0.7

1.1

-0.6

2.6

.6

-0.7

-2.1

1.4

.3

1.8

.5

.9

-0.2

3.4

1.6

3.7

1.8

3.1

1.4

4.2

2.4

4.7

2.8

3.6

2.0

2.5

.9

4.1

1.4

.5

.3

3.3

1.4

4.1

2.0

2.3

.7

2.1

.2

3.6

1.1

.2

-1.0

Multifactor
productivity

71

Table 9. Output per hour and multifactor productivity in four industries, 1960-85
(Indexes, 1960 = 100)
Iron and Steel
Year

Output
per
hour

Motor Vehicles

Multifactor
productivity

Output
per
hour

Tires and Tubes

Multifactor
productivity

Output
per
hour

Footwear

Multifactor
productivity

Output
per
hour

Multifactor
productivity

1960
1961
1962
1963
1964

...................
...................
...................
...................
...................

100.0
103.9
106.9
112.9
119.1

100.0
101.6
102.2
106.4
114.0

100.0
101.2
110.9
115.7
116.6

100.0
99.5
108.4
113.5
113.1

100.0
103.4
113.7
122.1
133.0

100.0
101.2
105.9
109.5
115.8

100.0
100.7
101.5
105.4
105.1

100.0
101.5
101.8
102.3
101.3

1965
1966
1967
1968
1969

...................
...................
...................
...................
...................

123.3
126.3
122.5
124.9
127.7

117.3
117.3
108.0
108.6
109.9

124.4
124.4
124.8
135.5
132.6

117.4
114.8
109.7
118.3
118.9

135.5
138.0
137.7
147.1
142.5

114.8
113.2
107.6
113.5
109.0

104.0
105.8
103.6
107.3
100.4

99.1
99.8
91.0
93.3
87.5

1970
1971
1972
1973
1974

...................
...................
...................
...................
...................

125.3
131.1
139.3
150.0
158.1

108.1
109.8
112.3
120.9
128.7

127.3
148.0
151.0
153.5
146.5

110.2
115.4
120.2
124.5
123.3

146.1
156.6
162.6
158.0
154.4

107.9
114.5
116.7
115.7
113.3

108.1
110.0
107.3
106.2
104.9

89.3
88.5
87.4
87.0
84.2

1975
1976
1977
1978
1979

...................
...................
...................
...................
...................

138.7
144.2
144.5
152.0
154.0

111.2
117.2
116.3
121.9
121.4

157.0
167.7
178.3
177.5
173.8

125.5
131.9
134.8
134.9
133.2

152.1
166.5
167.5
181.1
180.2

108.9
113.2
124.7
129.2
131.8

109.2
109.8
111.9
113.9
111.5

83.6
85.6
86.1
87.5
91.7

1980
1981
1982
1983
1984
1985

...................
...................
...................
...................
...................
...................

152.9
162.0
141.8
172.7
189.7
203.0

119.1
118.1
112.1
133.7
138.8
143.7

160.1
164.0
171.5
195.0
205.5
216.0

120.8
121.7
122.5
130.3
136.3
141.6

171.2
197.8
215.7
228.8
247.4
246.7

128.8
138.4
146.3
157.0
163.8
161.1

109.6
106.3
118.6
116.4
117.4
117.9

85.4
82.3
86.4
85.4
84.0
78.7




72




Table 10. Output per employee year, output, and employee years in the Federal
Government, measured sample, fiscal years 1967-86
(Index, 1967 = 100)

Fiscal year

Output per
employee year

Output

Employee years

1967 ................................................................
1968 ................................................................
1969 ................................................................

100.0
101.1
103.5

100.0
103.7
107.1

100.0
102.6
103.4

1970
1971
1972
1973
1974

................................................................
................................................................
................................................................
................................................................
................................................................

104.0
105.6
106.3
109.3
108.7

107.4
108.8
109.0
110.7
110.9

103.3
103.0
102.5
101.3
102.0

1975
1976
1977
1978
1979

................................................................
................................................................
................................................................
................................................................
................................................................

110.3
112.2
115.5
117.5
118.2

112.8
113.7
115.7
118.4
119.2

102.2
101.3
100.1
100.8
100.9

1980
1981
1982
1983
1984

................................................................
................................................................
................................................................
................................................................
................................................................

120.7
123.6
125.4
127.5
127.8

122.7
124.5
126.0
129.3
132.3

101.6
100.7
100.4
101.4
103.6

1985 ................................................................
1986 ................................................................

128.6
130.8

135.9
139.0

105.6
106.3




73

Table 11. Output per employee year by functional grouping, and total measured sample,
Federal Government, fiscal years 1967-86
(Average annual percent change)
Functional groupings

Output per employee year

Total Federal Sample ........................................
Audit of operations .....................................................
Buildings and grounds.................................................
Communications1 .......................................................
Education and training2 .............................................
Electric power production and distribution ...............

1.5
1.0
3.5
10.9
1.8
-2.9

Equipment maintenance2 ...........................................
Finance and a cco unting.............................................
General support s e rv ic e s ...........................................
Information s e rv ic e s ...................................................
Legal and judicial a c tivitie s.........................................

1.0
4.7
4.4
1.1
.2

Library services ..........................................................
Loans and grants ........................................................
Medical s e rvice s..........................................................
Military base s e rv ic e s .................................................
Natural resources and environmental
m anagem ent............................................................

4.6
3.3
.3
.4

Personnel investigations.............................................
Personnel m anagem ent.............................................
Postal s e rv ic e ..............................................................
Printing and duplication .............................................
P rocurem ent................................................................

2.6
1.0
1.3
.3
2.7

Records management ...............................................
Regulation - compliance and enforcem ent...............
Regulation - rulemaking and licensing .....................
Social services and b e n e fits ......................................
Specialized m anufacturing.........................................

3.3
2.7
3.5
2.3
3.3

Supply and inventory control ....................................
Traffic management3 .................................................
Transportation ............................................................

1.3
1.9
2.4

1Fiscal years 1973-86
2Fiscal years 1968-86
3Fiscal years 1972-86

1.5

74




Table 12. Trends in real gross domestic product per employed person, selected
countries, 1960-86
(Index, 1960 = 100)
United
States

Year

Canada

Japan

France

Germany

Italy

United
Kingdom

1960
1961
1962
1963
1964

.......................
.......................
.......................
.......................
.......................

100.0
102.5
106.0
108.8
112.2

100.0
101.5
105.8
108.8
112.1

100.0
113.1
119.7
131.1
146.3

100.0
105.5
112.6
117.7
124.0

100.0
103.2
107.7
110.1
117.3

100.0
107.5
114.5
123.0
126.9

100.0
102.2
102.8
106.9
110.9

1965
1966
1967
1968
1969

.......................
.......................
.......................
.......................
.......................

115.8
119.1
119.6
122.0
122.0

115.3
118.3
118.4
122.5
125.2

151.4
163.9
177.9
196.9
218.9

129.5
135.2
141.2
147.7
155.6

123.0
132.0
130.9
138.2
146.3

134.3
144.7
153.2
163.3
174.5

112.4
114.3
118.8
124.3
126.0

1970
1971
1972
1973
1974

.......................
.......................
.......................
.......................
.......................

121.0
123.8
126.1
128.1
124.9

127.2
131.5
135.1
138.7
139.1

237.7
246.0
266.1
279.8
277.4

162.3
170.3
179.3
186.3
190.7

151.9
155.4
162.4
168.9
171.6

182.9
186.1
195.5
207.5
212.0

129.3
134.7
137.0
144.8
143.0

1975
1976
1977
1978
1979

.......................
.......................
.......................
.......................
.......................

125.0
126.9
128.1
129.2
128.3

140.3
146.1
148.6
150.2
150.0

285.6
296.5
308.1
319.8
332.3

192.6
201.1
205.6
211.6
218.3

173.8
184.8
190.5
194.8
200.2

203.2
213.7
215.6
221.1
229.4

143.0
149.6
151.0
155.1
156.6

1980
1981
1982
1983
1984

.......................
.......................
.......................
.......................
.......................

127.5
128.6
126.4
129.5
133.1

147.8
149.1
149.2
152.6
158.3

343.5
353.8
360.2
365.5
381.6

221.7
225.7
231.0
233.6
239.0

200.8
202.5
204.6
210.7
216.2

235.0
237.1
238.0
238.7
245.7

154.7
158.5
161.6
168.4
169.2

1985 .......................
1986 .......................

134.8
136.0

160.5
161.3

396.1
402.5

244.0
248.5

220.4
223.7

251.2
256.6

173.1
176.6




75

Table 13. Relative levels in gross domestic product per employed person,1 selected
countries, 1960-86
(Index, United States = 100)

Year

United
States

Canada

Japan

France

G erm any

Italy

United
Kingdom

1960
1961
1962
1963
1964

..........................
..........................
..........................
..........................
..........................

100.0
100.0
100.0
100.0
100.0

80.1
79.2
79.9
80.0
80.1

23.3
25.7
26.3
28.0
30.4

46.1
47.5
49.0
49.9
51.0

49.2
49.5
49.9
49.7
51.4

43.9
46.1
47.5
49.7
49.7

54.2
54.1
52.6
53.3
53.6

1965
1966
1967
1968
1969

..........................
..........................
..........................
..........................
..........................

100.0
100.0
100.0
100.0
100.0

79.7
79.5
79.2
80.4
82.2

30.4
32.0
34.6
37.6
41.8

51.6
52.4
54.5
55.8
58.8

52.2
54.5
53.8
55.7
58.9

51.0
53.4
56.3
58.8
62.8

52.6
52.0
53.8
55.3
56.0

1970
1971
1972
1973
1974

..........................
..........................
..........................
..........................
..........................

100.0
100.0
100.0
100.0
100.0

84.1
85.1
85.8
86.7
89.2

45.7
46.3
49.1
50.8
51.7

61.9
63.5
65.6
67.1
70.4

61.7
61.7
63.3
64.8
67.5

66.4
66.1
68.1
71.2
74.6

57.9
59.0
58.9
61.3
62.1

1975
1976
1977
1978
1979

..........................
..........................
..........................
..........................
..........................

100.0
100.0
100.0
100.0
100.0

89.9
92.2
92.9
93.1
93.6

53.2
54.4
56.0
57.6
60.3

71.1
73.1
74.0
75.5
78.5

68.4
71.6
73.1
74.1
76.7

71.4
74.0
74.0
75.2
78.5

62.0
63.9
63.9
65.1
66.2

1980
1981
1982
1983
1984

..........................
..........................
..........................
..........................
..........................

100.0
100.0
100.0
100.0
100.0

92.8
92.8
94.5
94.4
95.2

62.7
64.1
66.3
65.7
66.7

80.2
81.0
84.3
83.2
82.8

77.4
77.5
79.6
80.0
79.9

81.0
81.0
82.7
81.0
81.1

65.8
66.8
69.3
70.5
68.9

1985 ..........................
1986 ..........................

100.0
100.0

95.3
95.0

68.4
68.9

83.5
84.3

80.4
80.9

81.9
82.9

69.6
70.4

O utput based on price weights of the Organization fo r Econom ic Cooperation and Developm ent.

76




Table 14. Trends in output per employee hour in manufacturing, selected
countries, 1960-86
(Index, 1960 = 100)

Year

United
States

Canada

Japan

France

G erm any

United
Kingdom

1960
1961
1962
1963
1964

..........................
..........................
..........................
..........................
..........................

100.0
102.8
107.2
114.5
119.9

100.0
105.4
112.8
116.9
122.4

100.0
113.3
118.1
127.7
144.7

100.0
105.8
112.2
117.6
126.4

100.0
104.5
111.7
116.4
126.1

100.0
100.1
102.3
107.7
114.9

1965
1966
1967
1968
1969

..........................
..........................
..........................
..........................
..........................

123.1
124.4
124.3
128.3
129.8

128.2
131.1
133.6
143.3
151.0

150.8
166.1
190.5
214.5
247.8

135.1
145.6
154.6
171.0
180.6

133.8
139.5
149.0
160.8
171.3

118.4
122.3
128.0
137.4
140.7

1970
1971
1972
1973
1974

..........................
..........................
..........................
..........................
..........................

129.8
137.1
143.1
150.1
145.7

149.1
159.6
167.4
178.1
180.9

279.3
295.7
324.5
357.9
372.6

190.9
201.4
213.3
225.7
234.1

176.4
183.5
195.4
208.2
216.5

143.8
150.5
159.0
170.7
173.5

1975
1976
1977
1978
1979

..........................
..........................
..........................
..........................
..........................

149.3
156.1
160.7
163.1
163.0

174.7
186.9
197.2
199.4
201.3

377.9
406.3
431.0
465.4
494.6

242.9
260.8
274.4
287.1
301.1

223.4
239.1
247.8
255.6
268.1

169.6
177.2
178.8
181.5
183.2

1980
1981
1982
1983
1984

..........................
..........................
..........................
..........................
..........................

163.0
166.6
170.2
180.0
189.9

193.6
203.0
193.8
207.9
230.4

528.6
548.3
581.6
613.1
657.2

303.5
312.7
334.8
343.5
354.1

269.1
275.0
279.0
295.4
306.4

182.0
191.3
202.9
220.2
232.1

1985 ..........................
1986 ..........................

199.6
207.0

236.1
235.5

705.3
724.9

365.1
372.1

319.0
323.7

240.9
249.4

Table 15. Output per employee hour in manufacturing, selected countries,
selected periods, 1960-86
(Average annual rate of change, in percent)
M anufacturing output per hour
C ountry
1960-86

United States ............................
Canada ........................................
Japan ..........................................
France ........................................
G e rm a n y .....................................
United K ingdom .......................

2.8
3.1
7.9
5.3
4.6
3.6

1960-73

3.2
4.5
10.3
6.5
5.8
4.3

1973-79

1979-86

1.4
2.1
5.5
5.0
4.3
1.1

3.5
1.4
5.6
3.6
2.8
4.4




77

Table 16. Output per hour of all persons, unit labor costs, and compensation per
hour in the business economy, 1960-86
(Percent change from previous year)
O utput per hour
Year

Unit labor costs

C om pensation
per hour

of all persons

1960
1961
1962
1963
1964

........................................................................
........................................................................
........................................................................
........................................................................
........................................................................

1.7
3.5
3.6
4.0
4.3

2.6
.3
1.1
-0.2
.8

4.3
3.9
4.7
3.8
5.2

1965
1966
1967
1968
1969

........................................................................
........................................................................
........................................................................
........................................................................
........................................................................

3.0
2.8
2.7
2.7
.1

.9
4.1
2.6
5.0
6.9

3.8
6.9
5.4
7.9
7.0

1970
1971
1972
1973
1974

........................................................................
........................................................................
........................................................................
........................................................................
........................................................................

.7
3.2
3.0
2.0
-2.1

6.5
3.1
3.3
6.2
11.9

7.3
6.4
6.4
8.3
9.5

1975
1976
1977
1978
1979

........................................................................
........................................................................
........................................................................
........................................................................
........................................................................

2.0
2.8
1.7
.8
-1.2

7.6
5.9
6.0
7.6
11.1

9.7
8.9
7.8
8.5
9.7

1980
1981
1982
1983
1984

........................................................................
........................................................................
........................................................................
........................................................................
........................................................................

-0.3
1.4
-0.4
2.7
2.5

10.9
7.7
8.3
1.4
1.5

10.5
9.2
7.8
4.2
4.1

1985 ........................................................................
1986 ........................................................................

1.8

2.8
2.0

4.7

1.9

3.9

78




Table 17. Composition of price change, business economy, 1960-86
(Percent change)
Point contribution to percent change
Year

Implicit
price deflator

Unit nonlabor

Unit labor costs

paym ents

1960
1961
1962
1963
1964

.........................................................................
.........................................................................
.........................................................................
.........................................................................
.........................................................................

1.4
.5
1.9
.9
1.0

1.7
.2
.7
-0.1
.5

-0.2
.3
1.2
1.0
.5

1965
1966
1967
1968
1969

.........................................................................
.........................................................................
.........................................................................
.........................................................................
.........................................................................

2.3
3.3
2.5
4.6
5.1

.5
2.6
1.7
3.2
4.5

1.8
.8
.8
1.4
.6

1970
1971
1972
1973
1974

.........................................................................
.........................................................................
.........................................................................
.........................................................................
.........................................................................

4.7
4.9
4.0
6.4
9.6

4.3
2.0
2.1
4.0
7.9

.5
3.0
1.9
2.4
1.8

1975
1976
1977
1978
1979

.........................................................................
.........................................................................
.........................................................................
.........................................................................
.........................................................................

10.3
5.9
6.4
7.3
9.0

4.9
3.8
3.9
4.9
7.3

5.5
2.1
2.5
2.4
1.8

1980
1981
1982
1983
1984

.........................................................................
.........................................................................
.........................................................................
.........................................................................
.........................................................................

9.0
9.6
5.9
3.3
3.3

7.3
5.0
5.6
1.0
1.0

1.8
4.6
.5
2.4
2.4

1985 .........................................................................
1986 .........................................................................

2.7
2.1

1.8
1.3

.9
.8

Table 18. Output per hour of all persons, compensation per hour, unit labor costs,
and prices in major sectors, 1979-86
(Average annual percent change)

Sector

Communications................................
F arm ...................................................
Manufacturing.....................................
Transportation ...................................
Trade .................................................
Electric, gas, and sanitary
services...........................................
M ining.................................................

Output per hour
of all persons

Compensation
per hour

Unit labor
costs

Prices

4.0
7.9
3.5
-0.6
2.0

7.0
2.0
6.4
5.3
6.0

2.9
-5.5
2.8
5.9
3.9

5.7
-4.0
3.3
6.6
4.3

1.3
1.6

7.6
7.1

6.2
5.4

8.9
5.4




79

Table 19. Output per employee hour and compensation per employee hour,
selected manufacturing industries, 1972-85
(Average annual percent change)

Industry

Red meat p r o d u c ts ............
Poultry dressing and
p ro c e s s in g .......................
Fluid m ilk ............................
Preserved fruits and
v e g e ta b le s .......................
Grain mill p r o d u c t s ............
Bakery p r o d u c t s ................
Sugar ...................................
Malt b e v e ra g e s ...................
Bottled and canned
soft d r in k s .......................
Total tobacco
products ..........................
Cotton and synthetic
broad w oven
f a b r ic s ..............................
H o s ie r y .................................
Nonwool yarn m i l l s ............
Saw m ills and planing
mills, g e n e ra l...................
M illwork ..............................

O utput per
em ployee hour

Com pensation
per hour

3.1

6.7

4.1
4.9

7.9
8.6

1.9
4.3

8.8
9.0

1.1
.6
5.6

8.5
8.4
9.5

5.0

8.7

1.5

12.8

3.7
3.8
3.3
2.3

8.5
7.7
8.6

-1.4

7.9
8.4

1.2

7.0

2.6

8.6

1.3

W ood kitchen
c a b in e ts ............................
Veneer and
p ly w o o d ............................
Household
fu rn itu re ............................
O ffice furniture ...................
Paper, paperboard, and
pulp m ills ..........................

2.6

7.3
8.7

2.7

9.9

Paper and plastic
bags .................................

.7

8.3

Industry

Folding paperboard
boxes ..............................
Industrial inorganic
chem icals .......................
Synthetic f ib e r s ...................
P harm aceutical
preparations ...................
Soaps and
d e te rg e n ts .......................
Cosm etics and other
to ile trie s ............................
Paints and allied
products ..........................
Industrial organic
chem icals, N .E .C .............
Petroleum refining ............
Tires and inner
t u b e s .................................
M iscellaneous plastics
products ..........................

O utput per
em ployee hour

Com pensation
per hour

.7

8.3

0.0
4.7

9.8
9.7

2.3

9.0

.3

8.7

-0.6

7.1

2.4

8.5

1.7
.1

9.2
9.4

3.7

9.4

2.1

8.3

Footw ear ............................
Glass c o n ta in e rs ................
H ydraulic c e m e n t ..............
S tructural clay
products ..........................
C lay construction
products ..........................

.5
2.3
1.8

7.5
9.7
8.7

1.6

8.6

1.6

8.0

Clay r e fra c to rie s ................
Concrete products ............
Ready-m ixed
concrete ..........................
C orrugated and solid
fiber boxes .....................
S t e e l.....................................

1.8

10.0

.4

7.4

-0.6

7.0

2.9

8.4
7.6

1.8

80




Table 19. Output per employee hour and compensation per employee hour,
selected manufacturing industries, 1972-85 (continued)
(Average annual percent change)

Industry

G ray iron fo u n d r ie s ............
Steel f o u n d r ie s ...................
Prim ary copper, lead,
and z in c ............................
Prim ary a lu m in u m ..............
C opper rolling and
d r a w in g ............................
A lum inum rolling and
d r a w in g ............................
Metal cans ..........................
Hand and edge
tools .................................
Heating equipm ent,
except e le c t r ic ................
Fabricated structural
m e t a l.................................
Metal doors, sash,
and t r i m ............................
Metal s ta m p in g ...................
Valves and pipe
f it t in g s ...............................
Fabricated pipe and
f it t in g s ..............................
Internal com bustion
engines, N .E .C .................
Farm and garden
m a c h in e r y .......................
C onstruction m achinery
and equipm ent ..............
M ining m achinery and
e q u ip m e n t.......................
O ilfield m achinery and
e q u ip m e n t........................

O utput per
em ployee hour

.6

C om pensation
per hour

-1.1

8.7
8.2

5.1

12.1

1.4

10.6

3.0

3.7

9.4
9.8

-0.8

7.8

M achine t o o l s .....................
M achine tool
a c c e s s o rie s .....................
Pum ps and
c o m p re s s o rs ...................
Ball and roller
bearings ..........................

O utput per
em ployee hour

C om pensation
per hour

-1.3

8.4

-1.1

7.7

.9

9.2

-1.1

7.8

.1
.6

8.6
8.4

.9

8.4

.8

8.8

2.8

8.4

2.8
.7

9.6
7.9

8.7

9.7

14.1

10.4

2.4

8.5

3.3

9.5

8.0

1.8

Industry

1.6

7.0

0.0

7.3

.9
.8

8.2
8.1

.7

8.7

-1.6

8.0

.4

9.5

.4

8.5

.2

9.4

-1.0

9.4

-1.7

9.2

R efrigeration and heating
e q u ip m e n t........................
Transform ers .....................
S w itchgear and
sw itchboard
apparatus ........................
M otors and
g e n e ra to rs ........................
M ajor household
a p p lia n c e s ........................
Electric la m p s .....................
Lighting fixtures ................
Radio and television
receiving sets ................
S em iconductors and
related devices ..............
M otor vehicles and
e q u ip m e n t........................
Instrum ents to m easure
e le c tric ity ..........................

81

Table 20. Output per employee hour and prices, selected industries, 1965-85
(Average annual percent change)

Industry

Iron mining, usable o r e ...................
Bitum inous coal and lignite
m in in g ............................................
Red meat products1 .......................
Poultry dressing and
p ro c e s s in g .....................................
Fluid milk ..........................................

Output per
em ployee hour

Prices

Industry

O utput per
em ployee hour

Prices

2.0

7.0

Pharm aceutical
preparations .................................

3.4

5.1

-0.4
2.9

10.9
5.8

3.2
5.0

3.9
5.0

2.5
3.5
1.5
1.6
6.5

S oaps and detergents ...................
C osm etics and other
to ile trie s ..........................................
Paints and allied products ............
Industrial organic chem icals,
N .E .C ................................................

1.8

6.2

1.7
2.4

5.3
6.4

3.8

8.0

6.6
5.1
7.1
7.4
4.5

Footwear ..........................................
Glass c o n ta in e rs ..............................
H ydraulic cem ent ............................
Structural clay products ................

.4
2.1
1.9
2.5

6.3
8.1
8.3
7.0

4.1
1.5
5.8
2.5

7.5
3.6
1.9
5.1

C oncrete products ..........................
S t e e l...................................................
G ray iron fo u n d r ie s .........................
Steel f o u n d r ie s .................................
Prim ary c o p p e r .................................

1.2
1.8
1.4
.1
3.8

7.0
8.4
8.2
8.2
3.7

2.1

7.9

1.5

7.9

M illwork ............................................
Veneer and p ly w o o d .......................
H ousehold furniture .......................
O ffice furniture .................................
Paper, paperboard, and
pulp m ills ........................................

-0.2
3.2
2.0
1.9

8.0
6.0
4.9
6.9

Prim ary a lu m in u m ............................
C opper rolling and
d r a w in g ..........................................
Alum inum rolling and
d r a w in g ..........................................
Metal cans ........................................
Hand and edge tools .....................

1.9

4.6

3.6
3.0
0.0

7.3
7.8
8.1

3.2

.4

Paper and plastic b a g s ...................
Folding paperboard
boxes ............................................
C orrugated and solid fiber
boxes ............................................
Synthetic f ib e r s .................................

1.9

7.1

.3

7.5

1.8

6.3

3.7
6.4

6.2
3.4

1.1
1.0
.6

7.6
7.1
7.8

Preserved fruits and
v e g e ta b le s .....................................
Grain mill products ..........................
Bakery p r o d u c t s ..............................
Sugar .................................................
Malt b e v e ra g e s .................................
Bottled and canned soft
drinks ............................................
Total tobacco p r o d u c ts ...................
H o s ie r y ...............................................
Nonwool yarn m i l l s ..........................
Saw m ills and planing mills,
general ..........................................




Fabricated structural
m e t a l...............................................
Metal doors, sash, and
trim 1 ...............................................
Metal s ta m p in g s ..............................
Valves and pipe fittin g s ...................

82




Table 20. Output per employee hour and prices, selected industries, 1965-85 (continued)
(Average annual percent change)

Industry

O utput per
em ployee hour

Prices

Fabricated pipe and
f it t in g s .............................................

-0.6

8.8

1.6
1.7

8.7
7.0

1.1

8.3

.3
-0.5

10.1
8.5

.6

Internal com bustion
engines, N .E .C .1 ..........................
Farm and garden m achinery . . . .
C onstruction m achinery and
e q u ip m e n t.....................................
Oilfield m achinery and
e q uipm e nt1 ...................................
Machine t o o l s ...................................
M achine tool a c c e s s o rie s ..............
Pum ps and com pressors ..............
Ball and roller b e a rin g s ...................

1.4
.3

6.7
7.2
7.8

Petroleum refining ..........................
Tires and inner tubes .....................
Transform ers ...................................

1.7
2.8
1.5

13.6
6.0
5.6

Sw itchgear and sw itchboard
apparatus .....................................
Motors and g e n e ra to rs ...................
M ajor household
a p p lia n c e s .....................................
Electric la m p s ...................................
Lighting fixtures ..............................
Radio and television
receiving sets ..............................
M otor vehicles and
e q u ip m e n t.....................................
Railroad transportation,
revenue t r a f f ic ..............................
C lass I bus c a r rie rs ..........................
Air transportation ............................

11967-85

1.8
1.0

6.6
7.8

3.6

4.9
7.7
6.4

1.9
1.6

6.6

-0.7

2.6

6.4

3.9
-1.3
4.3

9.5
9.0
8.8

Industry

O utput per
em ployee hour

Prices

Telephone
com m unications ..........................
Electric u t ilit ie s .................................
G as u tilitie s ........................................
D epartm ent sto re s1 ........................
Retail food stores ............................

5.9
2.2
-0.2
2.7
-0.4

3.4
7.8
11.1
4.8
6.8

1.5
3.8

5.6
8.7

3.6

3.4

2.4

3.6

5.5
3.9
1.3

2.7
3.6
4.5

1.1

5.4

4.8

3.2

3.1

4.2

2.0

4.9

-0.1

7.6

2.8

5.4

1.3

7.8

-0.1

7.8

Franchised new car
dealers ..........................................
G asoline service s t a t io n s ..............
Apparel and accessory
stores1 .............................................
M e n’s and bo ys’ clothing
stores1 .............................................
W om en ready-to-w ear
stores1 .............................................
Fam ily clothing s to re s1 ...................
S hoe stores1 ......................................
R efrigeration and heating
e q uipm e nt1 ...................................
Appliance, radio, television
and m usic s to re s1 ........................
Furniture, hom e furnishings
and equipm ent s to re s1 ..............
Furniture and hom e
furnishings s to re s1 .....................
Eating and drinking p la c e s ............
Drug and proprietary
stores .............................................
Hotels, m otels, and
tourist c o u r t s .................................
Laundry and cleaning
s e r v ic e s ..........................................

83

Table 21. Output per employee hour and employment, selected industries,
1973-86
(Average annual percent change)

Industry

Iron m ining, usable o r e ...................
C opper m ining, recoverable
m e t a l...............................................
Bitum inous coal and lignite
m in in g ............................................
N onm etallic m inerals, except
fuels ...............................................
Red meat p r o d u c ts ..........................
Poultry dressing and
processing1 ...................................
Fluid m ilk1 ..........................................
Preserved fruits and
veg etab le s1 ...................................
G rain mill products1 .......................
Bakery products1 ............................

Productivity
1973-86

Hours
1973-86

3.4

-8.8

7.4

-8.9

2.9

.4

.8
3.2

-1.1
-1.0

4.5
5.0

2.2
-4.3

1.7
4.6
1.2

-0.5
-1.3
1.2

.7
4.9

-3.1
-1.9

5.0

0.0

1.6

-3.6

3.1
3.4

.5
-2.3

3.3
-1.2
1.2

-2.2
1.1
3.9

Veneer and p lyw oo d1 .....................
H ousehold furniture .......................
O ffice furniture .................................
Paper, paperboard, and
pulp m ills ........................................

2.8
1.4
2.7

-2.1
-1.1
4.7

2.8

-0.9

Paper and plastic b a g s ...................
Folding paperboard boxes ............

.5
.5

.2
.3

Hours
1973-86

2.6

-0.2

0.0
4.7

-0.4
-4.3

2.2

-0.1

.1

1.0

-1.0
2.5

2.6
-1.6

1.4
.5

-0.2
-0.7

Tires and inner tubes .....................
M iscellaneous plastics
products1 ........................................
Footw ear ..........................................
G lass c o n ta in e rs ..............................
H ydraulic cem ent ............................

4.2

-4.9

2.1
.6
2.5
2.5

3.5
-5.3
-3.7
-3.0

S tructural clay products ................
C oncrete products1 ..........................
S t e e l...................................................
G ray iron fo u n d r ie s .........................
Steel fo u n d r ie s .................................

1.7
.3
2.3
.5
-1.3

-3.5
-1.7
-6.0
-5.0
-4.1

6.2
18
3.4

-10.0
-3 1
-4.7

1.9
3.6

-0.9
-3.1

-0.8

-0.5

1.7

-1.7

Corrugated and solid fiber
boxes ............................................
Industrial inorganic
che m icals1 ...................................
Synthetic f ib e r s .................................
P harm aceutical
preparations ................................
Soaps and de terg ents1 ...................
C osm etics and other
to ile trie s1 ........................................
Paints and allied products ............
Industrial organic
chem icals N .E .C .1 .......................
P etroleum refining ..........................

-2.4

4.1

P roductivity
1973-86

Industry

S ugar .................................................
Malt b e v e ra g e s .................................
Bottled and canned
soft drinks .....................................
Total tobacco
products ........................................
Cotton and synthetic broad
w oven fabrics ..............................
H o s ie r y ...............................................
Nonwool yarn m i l l s ..........................
Saw m ills and planing mills,
general ..........................................
M illw ork1 ............................................
W ood kitchen ca b in e ts1 ................




Prim ary copper, lead, and
z i n c .................................................
Prim ary alum inum
C opper rolling and d r a w in g ............
A lum inum rolling and
d r a w in g ..........................................
Metal cans ........................................
Hand and edge to o ls 1 .....................
H eating equipm ent, except
electric1 ..........................................

84




Table 21. Output per employee hour and employment, selected industries,
1973-86 (continued)
(Average annual percent change)

Industry

Productivity
1973-86

Flours
1973-86

Fabricated structural metal1 ........
Metal doors, sash, and trim1 ........
Metal stampings1 ........................

.3
1.1
.9

-0.7
1.1
-0.4

Valves and pipe fittings1 ..............
Fabricated pipe and fittings1 ........
Internal combustion engines,
N.E.C.1 .....................................
Farm and garden machinery1 . . . .
Construction machinery and

.8
-1.7

0.0
2.6

.2
.2

-0 9
-4.5

.3

-5.4

-1.2

-4.4

-2.5
-1.4

1.4
-4.1

-1.3
.8

-0.3
-0.5

Ball and roller bearings................
Refrigeration and heating
equipment1 ..............................
Transformers ..............................
Switchgear and switchboard
apparatus .................................
Motors and generators1 ..............

-1.1

-2.0

.3
.7

.3
-1.1

1.3
.9

-1.7
-1.7

Major household appliances........
Electric lam ps...............................
Lighting fixtures1 ..........................
Radio and television
receiving sets ..........................
Semiconductors and related
devices .....................................

3.1
2.9
.7

-1.4
-3.3
.3

9.6

-5.2

12.8

6.9

Motor vehicles and
equipment.................................

2.7

-0.9

Mining machinery and
equipment1 ..............................
Oilfield machinery and
equipment.................................
Machine to o ls ...............................
Machine tools and
accessories1 ............................
Pumps and compressors ............

1973-85

Industry

Productivity
1973-86

Flours
1973-86

Instruments to measure
electricity1 .................................
Railroad transportation,
revenue tra ffic ...........................
Class I bus carriers1 ....................
Intercity trucking1 .........................

3.3

4.3

5.1
-1.2
.4

-4.8
-1.8
-0.9

Air transportation ......................
Petroleum pipelines ....................
Telephone communications........
Electric utilities ...........................
Gas utilities .................................

3.9
.4
6.0
.2
-2.3

1.5
1.1
.2
2.6
.6

Flardware s to re s...........................
Department stores .......................
Retail food s to re s .........................
Franchised new car
dealers .....................................
Gasoline service sta tio n s............

1.5
3.1
-0.9

.7
.1
1.9

1.3
3.1

-0.1
-3.6

4.0

1.6

3.2
-0.6
.6
.6

1.6
3.4
.4
-0.5

.9

3.1

.3

3.5

-1.2
.4
-1.3

-0.8
.4
4.3

Apparel and accessory
stores .......................................
Furniture, home furnishings &
equipment stores .....................
Eating and drinking p la c e s ..........
Drug and proprietary stores ........
Liquor stores.................................
Commercial banking1 ..................
Flotels, motels, and
tourist c o u rts .............................
Laundry and cleaning
services.....................................
Beauty and barber s h o p s ............
Automotive repair shops..............




85

Table 22. Output and employment in selected industries with
similar productivity growth, 1960-85
(Average annual rates of change)
Output per
employee hour

Output

Employee hours

Gas utilities.................................................................
Drug and proprietary stores ......................................
Pulp and paper m ills ..................................................

3.3
3.5
3.5

5.6
3.4
2.8

2.2
-0.1
-0.7

Machine to o ls .............................................................
Eating and drinking p la ce s........................................
Laundry and drycleaning ..........................................

.1
.3
.4

-1.2
3.2
-2.7

-1.3
2.8
-3.0

Saw mills and planing m ills........................................
Glass containers.........................................................
Nonwool yarn m ills .....................................................

2.2
2.2
2.4

.6
1.7
3.3

-1.6
-0.5
.9

Industry

86




Table 23. Output per hour of all persons and real compensation per hour
in the business economy, 1950-86
(Index, 1950 = 100)
Year

Output per hour
of all persons

Real compensation
per hour

1950
1951
1952
1953
1954

...............................................................
...............................................................
...............................................................
...............................................................
...............................................................

100.0
104.0
107.3
111.2
112.9

100.0
101.7
105.7
112.0
115.1

1955
1956
1957
1958
1959

...............................................................
...............................................................
...............................................................
...............................................................
...............................................................

116.3
117.9
121.0
124.6
128.7

118.4
124.5
128.2
130.5
135.1

1960
1961
1962
1963
1964

...............................................................
...............................................................
...............................................................
...............................................................
...............................................................

130.9
135.5
140.3
145.9
152.2

138.7
142.5
147.5
151.2
157.0

1965
1966
1967
1968
1969

...............................................................
...............................................................
...............................................................
...............................................................
...............................................................

156.7
161.0
165.3
169.8
169.9

160.4
166.7
170.8
176.8
179.5

1970
1971
1972
1973
1974

...............................................................
...............................................................
...............................................................
...............................................................
...............................................................

171.1
176.6
182.0
185.6
181.6

181.8
185.5
191.1
194.7
192.2

1975
1976
1977
1978
1979

...............................................................
...............................................................
...............................................................
...............................................................
...............................................................

185.2
190.3
193.5
195.1
192.7

193.3
198.9
201.4
203.1
200.2

1980
1981
1982
1983
1984

...............................................................
...............................................................
...............................................................
...............................................................
...............................................................

192.1
194.8
194.0
199.3
204.3

194.9
192.8
195.9
197.8
197.4

1985 ...............................................................
1986 ...............................................................

208.0
211.9

199.6
203.5




87

Table 24. Gross domestic product per capita and average weekly hours, in the
business economy, 1950-86
(Index, 1950 = 100)
Year

GDP per capita

Average weekly hours

1950
1951
1952
1953
1954

...................................................
...................................................
...................................................
...................................................
...................................................

100.0
108.4
110.7
113.3
109.8

100.0
100.0
99.5
99.0
98.1

1955
1956
1957
1958
1959

...................................................
...................................................
...................................................
..................................................
...................................................

113.8
114.1
113.8
111.2
115.8

98.7
98.0
96.7
95.9
96.6

1960
1961
1962
1963
1964

..................................................
...................................................
...................................................
...................................................
...................................................

116.4
117.4
121.7
124.9
129.7

96.2
95.8
96.0
96.0
95.8

1965
1966
1967
1968
1969

..................................................
..................................................
..................................................
..................................................
...................................................

135.5
141.8
144.3
148.8
151.0

96.0
95.5
94.2
93.8
93.4

1970
1971
1972
1973
1974

...................................................
...................................................
..................................................
..................................................
..................................................

148.8
150.9
156.6
162.7
160.2

92.0
91.6
91.6
91.4
90.3

1975
1976
1977
1978
1979

...................................................
...................................................
...................................................
...................................................
...................................................

157.0
162.9
168.7
175.6
177.2

89.4
89.3
89.2
88.9
88.4

1980
1981
1982
1983
1984

..................................................
..................................................
...................................................
..................................................
..................................................

174.8
176.5
170.3
175.0
185.5

87.5
87.2
86.3
86.7
87.2

1985 ...................................................
1986 ...................................................

189.8
194.0

86.5

86.8

88




Table 25. Gross nonresidential capital formation per employed person,
selected countries, averages for periods, 1970-85 and 1979-85
(Index, United States = 100 each period)
Country

1970-85

1979-85

Canada ...............................................
Japan .................................................
France ...............................................
Germany.............................................
Ita ly.....................................................
United Kingdom ................................

103.5
85.8
82.6
87.8
63.1
58.2

110.1
94.2
86.4
90.8
63.1
58.8

Note: Capital formation converted to U.S. dollars using purchasing-power-parity exchange rates for
capital investment.

Table 26. Gross fixed capital formation per employed person, selected countries,
1970-79 and 1979-85
(Average annual rates)
Country

1970-79

1979-85

United States ....................................
Canada ..............................................
Japan .................................................
France ...............................................
Germany............................................
Ita ly.....................................................
United Kingdom ................................

0.6
2.0
3.0
2.2
1.4
.3
1.0

1.7
.3
2.7
1.1
.3
1.5
2.0




89

Table 27. Expenditures for research and development as a percent of gross national
product1, all R&D and nondefense R&D, selected countries, 1961-86
Year

United
States

France

Germany

Japan

United
Kingdom

All R&D expenditures
1961 ...........................................
1962 ..........................................
1963 ...........................................
1964 ...........................................
1965 ...........................................

2.7
2.7
2.8
2.9
2.8

1.4
1.5
1.6
1.8
2.0

NA
1.2
1.4
1.6
1.7

1.4
1.5
1.4
1.5
1.5

2.5
NA
NA
2.3
NA

1966
1967
1968
1969
1970

...........................................
...........................................
..........................................
...........................................
...........................................

2.8
2.8
2.8
2.7
2.6

2.1
2.1
2.1
1.9
1.9

1.8
2.0
2.0
1.8
2.1

1.5
1.5
1.6
1.6
1.9

2.3
2.3
2.3
2.3
NA

1971
1972
1973
1974
1975

...........................................
...........................................
...........................................
..........................................
..........................................

2.4
2.3
2.3
2.2
2.2

1.9
1.9
1.8
1.8
1.8

2.2
2.2
2.1
2.1
2.2

1.9
1.9
1.9
2.0
2.0

NA
2.1
NA
NA
2.2

1976
1977
1978
1979
1980

...........................................
...........................................
...........................................
...........................................
...........................................

2.2
2.1
2.1
2.2
2.3

1.8
1.8
1.8
1.8
1.8

2.2
2.1
2.2
2.4
2.4

1.9
1.9
2.0
2.1
2.2

NA
NA
2.2
NA
NA

1981 ...........................................
1982 ...........................................
1983 ...........................................
19842 ........................................
19852 .........................................
19862 ........................................

2.4
2.5
2.6
2.6
2.7
2.8

2.0
2.1
2.2
2.2
2.3
2.4

2.4
2.5
2.5
2.5
2.7
2.7

2.4
2.5
2.6
2.6
2.8
NA

2.4
NA
2.2
NA
2.2
NA

Nondefense R&D expenditures
1971 .......... ................................
1972 ...........................................
1973 ...........................................
1974 ...........................................
1975 ...........................................

1.6
1.6
1.6
1.6
1.6

1.5
1.5
1.4
1.4
1.5

2.0
2.1
1.9
2.0
2.1

1.8
1.8
1.9
2.0
1.9

NA
1.6
NA
NA
1.6

...........................................
...........................................
...........................................
...........................................
...........................................

1.6
1.6
1.6
1.7
1.8

1.4
1.4
1.4
1.4
1.4

2.0
2.0
2.1
2.3
2.3

1.9
1.9
2.0
2.1
2.2

NA
NA
1.6
NA
NA

1981 ...........................................
1982 ...........................................
1983 ...........................................
19842 ........................................
19852 ........................................
19862 .........................................

1.8
1.9
1.9
1.8
1.9
1.9

1.5
1.6
1.7
1.8
1.8
1.9

2.3
2.4
2.4
2.4
2.5
2.6

2.4
2.5
2.6
2.6
2.8
NA

1.7
NA
1.5
NA
1.5
NA

1976
1977
1978
1979
1980

NA = Not Available
1For France, as a percent of gross domestic product.
Preliminary or estimates.

90




Table 28. Scientists and engineers engaged in research and development,
per 10,000 labor force, selected countries and years
Country

1976

1980

1984

1986

United States ........................
France ..................................
Germany................................
Japan .....................................
United Kingdom ....................

54.8
29.9
39.2
48.4
31.11

60.0
32.4
46.52
53.6
46.52

65.1
41.2
49.1
62.4
34.2

64.0
NA
NA
63.23
32.83

11975
21981
31985

☆ U S . G O VE R N M E N T PRINTING OFFICE:

1988

J 202- 109

814- M /8 4 91 5

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Lab-441

U nited
States
D e p a rtm e n t
of Labor

iO

Years o f
Working for
A m ericas
Future