Historical, technical USDL 97-132 information: (202) 606-5618 FOR RELEASE: 10:00 a.m. EDT Media contact: (202) 606-5902 Wednesday, April 23, 1997 Internet address: http://stats.bls.gov PRODUCTIVITY BY INDUSTRY, 1995 The Bureau of Labor Statistics of the U.S. Department of Labor reported today on labor productivity changes in 1995 for selected industries in the U.S. economy. Labor productivity--as measured by output per hour--increased from 1994 to 1995 in 69 percent of the industries measured by BLS. Manufacturing Productivity gains were recorded in 1995 in 74 of the 111 separate manufacturing industries measured, the same as in 1994. Of the five largest manufacturing industries, four recorded productivity growth in 1995. Labor productivity rose by 2.6 percent in poultry dressing, 0.6 percent in the steel industry, 0.5 percent in aircraft, and 0.3 percent in miscellaneous plastics products. In steel and in miscellaneous plastics products, the productivity increases were smaller than the increases registered in 1994; in poultry dressing and in the aircraft industry, the productivity improvements followed declines in 1994. In contrast, labor productivity in the motor vehicles and equipment industry fell by 2.7 percent in 1995, after advancing in 1994. (See table at end.) Transportation, communications, and utilities Productivity rose in five of the six individual industries in transportation, communications, and utilities for which 1995 data are available. In the prior year, four of these six industries registered productivity gains. The rates of productivity change in 1995 were 8.9 percent in petroleum pipelines, 6.5 percent in electric utilities, 3.6 percent in gas utilities, 2.5 percent in air transportation, 2.1 percent in telephone communications, and -0.1 percent in the U.S. postal service. Trade Among the 20 distinct industries that BLS measures in the trade sector, 14 recorded labor productivity increases in 1995. The performance of the sector was similar in 1994; in that year, 13 industries experienced productivity growth. The trade sector includes eating and drinking places, which is the largest industry for which productivity is measured by BLS; in this industry, labor productivity increased by 0.8 percent in 1995. The biggest productivity gain from 1994 to 1995 in the trade sector--11.7 percent--was recorded in family clothing stores. Of the six trade industries with declines in output per hour from 1994 to 1995, the most substantial decrease was in hardware stores (7.1 percent). Finance and Services All five of the separate industries in finance and services posted rises in productivity in 1995. The productivity growth rates were 5.4 percent in automotive repair shops, 4.1 percent in commercial banks, 3.7 percent in beauty shops, 3.1 percent in laundry, cleaning, and garment services, and 2.0 percent in hotels and motels. In the previous year, each of these industries experienced either an increase or no change in output per hour. Mining Of the five distinct mining industries, three registered gains in 1995 in output per hour. The rates of change in productivity were sizable in all three industries: 12.8 percent in iron mining, 7.2 percent in crude petroleum and natural gas production, and 4.5 percent in coal mining. In fact, the productivity growth rate in iron mining was the highest outside of manufacturing in 1995. New Industry: Mobile Homes A new measure of labor productivity for the mobile homes manufacturing industry (SIC 2451) shows that output per hour increased at an average annual rate of 0.6 percent between 1977 and 1995, as output increased by an average 1.2 percent per year while labor hours rose by an average 0.6 percent per year. Over this period, the industry's products have become larger and more comparable to conventional single-family homes. Output growth in the mobile homes industry has been especially strong in recent years: Between 1990 and 1995, output expanded at an average rate of 9.0 percent per year. New Industry: U.S. Postal Service Productivity in the U.S. Postal Service (SIC 43) was measured by BLS for years as part of the Federal Productivity Measurement Program, which was terminated in 1996. The productivity series for the postal service has been transferred to the BLS industry productivity measurement program. Also, the series has been revised for 1987 forward to utilize superlative index number techniques. (To request a copy of a technical note explaining the revision, phone 202-606-5618.) Despite recent declines, over the long run, labor productivity has risen in the postal service, advancing at an average annual rate of 1.0 percent in the 1967-95 period. With over 800,000 employees in 1995, the postal service is among the 15 largest industries that BLS measures. Revisions The data in this news release reflect revisions to series published in BLS Bulletin 2480 (July 1996) and in table 41 of the Monthly Labor Review. Additional historical data are available from the Office of Productivity and Technology of BLS in various forms: Data printouts (202-606- 5618), data diskettes (202-606-7789), and on the World Wide Web (http://stats.bls.gov). The data for 1995 are preliminary and subject to revision. The labor productivity series for commercial banks (SIC 602) has been revised from 1987 forward to reflect improved data sources and changes in the composition of services provided by banks. The series now includes ATM transactions, home equity loans, and money market accounts. Further information about the revisions is available from the Office of Productivity and Technology (202-606-5618). Notes The analysis in this news release relates to the 150 separate industries for which BLS maintains measures of labor productivity. In addition, 30 measures are maintained for broader industries. The table in this news release presents data on all 180 industries. The productivity measures in this release describe the relationship between output and the labor time involved in its production. They show the changes from period to period in the amount of goods and services produced per hour. Although these measures relate output to hours of employees or all persons engaged in an industry, they do not measure the specific contribution of labor, capital, or any other factor of production. Rather, they reflect the joint effects of many influences, including changes in technology; capital investment; level of output; utilization of capacity, energy, and materials; the organization of production; managerial skill; and the characteristics and effort of the workforce. Information in this release will be made available to sensory impaired individuals upon request. Voice phone: 202- 606-7828, TDD phone: 202-606-5897, TDD message referral phone number: 1-800-326-2577. Table 1. Selected Industries: Employment and annual rates of change in output per hour, selected periods 1995 Annual percent change in output per hour(2) SIC Code Industry Employment(1) Long-term trends Current trends (thousands) 1973-79 1979-90 1990-95 1993-94 1994-95 Mining 101 Iron mining, usable ore 8 0.0 5.2 1.6 -2.2 12.8 102 Copper mining, recoverable metal 15 2.3 7.1 3.2 6.7 -4.5 12 Coal mining 106 -3.8 7.3 5.4 4.9 4.5 122 Bituminous coal and lignite mining 98 -3.9 7.4 5.4 4.9 4.1 131 Crude petroleum and natural gas production 150 -7.3 -1.2 4.5 6.1 7.2 14 Nonmetallic minerals, except fuels 106 1.1 0.8 0.3 3.6 -1.3 142 Crushed and broken stone 40 2.2 1.2 0.6 4.9 -2.9 Manufacturing 2011,13 Red meat products 233 2.6 1.1 1.3 -3.5 1.7 2011 Meat packing plants 141 2.4 2.3 1.0 -3.9 0.7 2013 Sausages and other prepared meats 92 5.5 0.4 1.6 -3.4 3.8 2015 Poultry dressing and processing 234 5.9 2.6 2.4 -0.3 2.6 202 Dairy products 148 3.4 3.4 1.9 2.0 2.8 2022 Cheese, natural and processed 40 0.7 3.4 2.2 1.7 2.6 2026 Fluid milk 66 4.2 3.6 2.3 5.4 2.6 203 Preserved fruits and vegetables 242 1.1 1.6 3.0 0.7 3.2 2033 Canned fruits and vegetables 78 1.7 1.8 3.1 -4.8 7.7 2037 Frozen fruits and vegetables 51 1.5 0.5 4.3 6.3 1.6 204 Grain mill products 128 3.9 4.2 1.9 1.0 5.6 2041,45 Flour (inc. flour mixes) and other grains 33 1.4 2.6 1.1 2.5 -2.7 2041 Flour and other grain mill products 19 2.7 2.7 1.7 3.8 -7.3 2043 Cereal breakfast foods 20 2.1 2.8 3.4 11.6 11.1 2044 Rice milling 5 2.6 3.8 -0.4 -15.7 -6.0 2046 Wet corn milling 10 11.8 7.4 3.4 -1.8 11.4 2047,48 Prepared feeds for animals and fowls 60 4.3 4.4 1.6 -2.0 6.5 205 Bakery products 209 0.3 1.0 -0.2 0.9 1.2 2061,62,63 Sugar 19 2.2 1.4 3.7 2.3 6.6 2061,62 Raw and refined cane sugar 10 3.5 1.0 2.5 -4.3 5.9 2063 Beet sugar 9 0.5 2.0 6.8 13.1 9.4 2082 Malt beverages 36 6.7 5.1 1.3 4.4 0.4 2086 Bottled and canned soft drinks 96 4.6 6.3 4.8 3.9 6.4 2092 Fresh or frozen prepared fish 45 0.1 -0.5 -0.2 -6.9 -5.5 211,2,3 Tobacco products 35 3.5 2.4 5.7 27.7 14.1 211,3 Cigarettes, chewing and smoking tobacco 32 2.2 1.8 6.3 28.1 14.7 221,2 Cotton and synthetic broadwoven fabrics 149 4.5 3.3 5.7 6.6 6.5 2251,52 Hosiery 64 6.7 1.4 3.1 6.3 1.8 2281 Yarn spinning mills 73 3.4 4.1 4.7 4.6 6.1 231 Men's and boys' suits and coats 36 4.0 0.3 4.2 18.4 -5.9 2392 Housefurnishings,except curtains and draperies 57 -2.3 2.6 2.6 -3.9 1.1 2421 Sawmills and planing mills, general 148 1.2 2.9 2.0 1.7 6.9 2426 Hardwood dimension and flooring mills 37 -0.2 1.3 4.1 -0.2 5.5 2431 Millwork 111 -1.5 0.2 -2.5 -4.3 -2.8 2434 Wood kitchen cabinets 76 1.7 0.5 1.9 -0.6 1.5 2435,36 Veneer and plywood 57 0.1 3.5 -2.4 -6.3 -3.2 2435 Hardwood veneer and plywood 28 -0.1 1.3 -1.8 -14.7 -7.0 2436 Softwood veneer and plywood 29 -0.5 4.7 -1.3 -1.9 0.1 244 Wood containers 51 (3)-5.3 3.9 -0.8 0.5 6.0 2451 Mobile homes 61 (3) 3.9 0.4 -0.3 -6.0 2.2 See footnotes at end of table. Table 1. Selected Industries: Employment and annual rates of change in output per hour, selected periods--Continued 1995 Annual percent change in output per hour(2) SIC Code Industry Employment(1) Long-term trends Current trends (thousands) 1973-79 1979-90 1990-95 1993-94 1994-95 Manufacturing--Continued 251 Household furniture 281 1.7 1.4 2.3 1.7 4.3 2511,17 Wood household furniture 132 0.2 1.2 1.3 -0.5 3.2 2512 Upholstered household furniture 90 3.5 1.4 5.2 8.8 6.2 2514 Metal household furniture 22 0.7 3.2 -1.3 -10.0 -1.0 2515 Mattresses and bedsprings 31 5.1 1.4 0.9 1.1 5.1 252 Office furniture 63 2.2 0.9 0.9 -0.1 1.7 2521 Wood office furniture 28 6.0 -1.7 1.2 -0.4 -0.7 2522 Office furniture, except wood 34 1.4 2.0 0.6 1.2 3.1 261,2,3 Pulp, paper, and paperboard mills 227 2.4 2.6 2.5 7.6 3.4 2653 Corrugated and solid fiber boxes 131 3.7 1.3 1.3 4.3 -2.2 2657 Folding paperboard boxes 48 0.8 1.4 3.8 4.2 3.2 2673,74 Paper and plastic bags 58 0.6 -0.2 -0.1 4.9 -5.0 281 Industrial inorganic chemicals 119 0.6 2.2 1.9 1.0 5.4 2812 Alkalies and chlorine 10 4.8 5.6 -1.0 -0.8 4.3 2816 Inorganic pigments 12 -1.1 4.0 0.7 6.7 -6.0 2819 (part) Industrial inorganic chemicals, n.e.c. 74 0.2 1.6 3.0 2.3 11.7 2823,24 Synthetic fibers 66 10.8 3.1 5.0 6.3 5.3 2841 Soaps and detergents 43 0.4 3.2 -0.3 -0.8 12.8 2844 Cosmetics and other toiletries 68 0.9 0.7 2.6 2.9 3.2 285 Paints and allied products 57 4.0 2.6 1.9 7.3 -0.1 2869 Industrial organic chemicals, n.e.c. 118 4.1 0.6 -1.2 8.7 -3.0 287 Agricultural chemicals 53 2.5 2.9 2.0 0.6 1.6 2873 Nitrogeneous fertilizers 9 1.8 3.6 0.0 -5.4 -3.2 2874 Phosphatic fertilizers 10 1.5 3.5 3.4 15.7 -3.7 2875 Fertilizers, mixing only 10 3.4 0.2 1.2 -14.5 0.8 2879 Agricultural chemicals, n.e.c. 25 2.0 2.2 3.3 4.1 8.0 291 Petroleum refining 104 -0.3 2.6 4.0 3.1 7.4 301 Tires and inner tubes 80 2.2 4.4 5.0 6.5 5.9 3052 Rubber and plastics hose and belting 27 0.7 2.1 -0.3 -7.5 -0.9 308 Miscellaneous plastics products, n.e.c. 709 0.3 3.2 2.7 3.1 0.3 314 Footwear, except rubber 53 0.7 -0.2 1.7 10.0 -4.5 3221 Glass containers 31 1.8 2.3 0.4 4.7 -1.0 324 Cement, hydraulic 18 -0.6 4.6 1.9 4.8 -1.8 325 Structural clay products 34 1.1 1.6 0.9 9.1 -0.5 3251,53,59 Clay construction products 27 0.1 2.4 1.7 5.6 3.1 3251 Brick and structural clay tile 14 -0.5 1.6 1.4 7.0 2.3 3253 Ceramic wall and floor tile 11 2.9 3.6 2.0 0.0 4.5 3255 Clay refractories 7 2.7 0.9 -1.5 12.9 -10.5 3271,72 Concrete products 86 -0.2 1.2 1.9 -0.6 5.2 3273 Ready-mixed concrete 101 -0.5 0.4 -0.9 -4.0 3.0 331 Steel 241 0.4 4.8 5.6 7.9 0.6 3321 Gray and ductile iron foundries 83 0.2 1.4 0.8 2.1 -2.7 3324,25 Steel foundries 43 -0.2 -0.7 1.8 0.7 3.9 3325 Steel foundries, n.e.c. 27 -0.1 0.6 1.8 -2.7 5.2 3331 Primary copper 6 3.8 6.8 -1.9 -14.8 4.5 3334 Primary aluminum 23 0.2 3.3 -0.8 -6.3 3.2 3351 Copper rolling and drawing 23 0.9 0.9 1.3 8.3 0.0 3353,54,55 Aluminum rolling and drawing 55 1.1 0.7 0.6 6.1 -5.7 See footnotes at end of table. Selected Industries: Employment and annual rates of change in output per hour, selected periods--Continued 1995 Annual percent change in output per hour(2) SIC Code Industry Employment(1) Long-term trends Current trends (thousands) 1973-79 1979-90 1990-95 1993-94 1994-95 Manufacturing--Continued 3411 Metal cans 33 4.1 4.1 4.5 4.5 4.0 3423 Hand and edge tools, n.e.c. 35 0.5 -1.5 0.7 8.0 -2.4 3433 Heating equipment, except electric 20 1.7 2.6 2.8 6.9 0.7 3441 Fabricated structural metal 73 -2.0 1.5 1.7 1.6 0.3 3442 Metal doors, sash, and trim 76 0.4 1.0 -1.3 -2.1 -6.3 3443 Fabricated plate work 102 n.a. (4)0.9 3.1 11.2 0.1 3452 Bolts, nuts, rivets, and washers 48 0.7 1.6 1.4 3.2 4.9 3465,66,69 Metal stampings 214 0.8 0.5 5.3 4.0 2.4 3465 Automotive stampings 116 1.4 1.5 6.0 3.4 2.8 3469 Metal stampings, n.e.c. 94 0.6 -0.9 4.5 4.3 3.2 3491,92,94 Valves and pipe fittings 84 0.4 0.6 1.4 5.3 0.0 3498 Fabricated pipe and fittings 28 -3.2 -0.7 1.1 -0.4 0.1 3519 Internal combustion engines, n.e.c. 62 0.7 2.1 2.9 14.6 4.5 352 Farm and garden machinery 100 1.0 1.6 3.1 5.4 8.5 3523 Farm machinery and equipment 74 0.6 1.4 1.7 6.2 9.1 3524 Lawn and garden equipment 26 2.9 1.2 5.9 1.7 8.3 3531 Construction machinery 78 0.7 1.7 3.9 15.1 7.9 3532 Mining machinery 17 -2.2 0.9 2.1 -9.1 9.8 3533 Oil and gas field machinery 40 -0.2 -2.8 0.6 -1.8 -2.0 3541,42 Machine tools 57 -0.7 -0.1 2.8 -3.9 4.7 3541 Metal cutting machine tools 40 -0.1 -0.2 2.4 -1.3 1.7 3542 Metal forming machine tools 17 -2.2 -0.1 3.5 -9.3 11.4 3545 Machine tool accessories 51 -0.9 0.3 3.3 13.1 6.5 3561,63,94 Pumps and compressors 81 0.9 1.4 1.8 5.4 1.0 3561,94 Pumps and pumping equipment 56 1.4 1.1 1.9 5.1 2.5 3562 Ball and roller bearings 39 0.3 -1.5 2.9 2.4 0.8 3563 Air and gas compressors 26 -0.3 2.1 1.3 5.2 -2.0 3585 Refrigeration and heating equipment 139 -0.3 0.7 1.6 3.0 -0.1 3592 Carburetors, pistons, rings, and valves 22 -3.7 3.1 4.6 4.8 0.1 3612 Transformers, except electronic 41 1.5 -0.2 8.3 17.7 11.5 3613 Switchgear and switchboard apparatus 42 -0.1 1.8 4.3 0.6 6.4 3621 Motors and generators 79 0.1 1.1 6.6 -2.1 11.8 3631,32,33,39 Major household appliances 92 3.2 2.0 4.3 8.7 -4.2 3631 Household cooking equipment 21 4.2 2.1 4.8 22.9 -1.5 3632 Household refrigerators and freezers 30 3.6 1.9 3.0 8.5 -2.0 3633 Household laundry equipment 17 2.7 1.9 4.8 3.9 -12.6 3639 Household appliances, n.e.c. 24 3.0 1.7 4.8 1.1 -2.4 3641 Electric lamp bulbs and tubes 22 3.7 2.3 -0.4 -2.0 -3.0 3645,46,47,48 Lighting fixtures and equipment 76 0.4 1.0 2.3 6.1 -2.3 3651 Household audio and video equipment 56 9.8 11.1 12.7 9.9 25.7 371 Motor vehicles and equipment 968 2.1 2.5 0.4 1.8 -2.7 3721 Aircraft 244 3.7 1.2 3.3 -7.5 0.5 3825 Instruments to measure electricity 70 1.8 3.8 9.0 18.2 13.1 386 Photographic equipment and supplies 85 5.0 2.9 3.7 4.6 -2.5 See footnotes at end of table. Selected Industries: Employment and annual rates of change in output per hour, selected periods--Continued 1995 Annual percent change in output per hour(2) SIC Code Industry Employment(1) Long-term trends Current trends (thousands) 1973-79 1979-90 1990-95 1993-94 1994-95 Transportation 4011 Railroad transportation 212 2.6 7.4 (5)7.1 n.a. n.a. 411,13,14 (pts) Bus carriers, class I 15 -1.3 (6)-0.3 n.a. n.a. n.a. 4213 Trucking, except local 536 3.2 (6) 2.7 n.a. n.a. n.a. 4213 (pt) Trucking, ex. local, general freight 329 4.0 (6) 3.0 n.a. n.a. n.a. 43 United States postal service(7) 843 0.6 1.1 0.5 -0.5 -0.1 4512,13,22 (pts) Air transportation 595 5.6 1.9 3.1 5.5 2.5 4612,13 Petroleum pipelines 15 0.7 0.5 2.8 3.5 8.9 Utilities 481 Telephone communications 915 6.8 5.4 5.0 4.7 2.1 491,2,3 Gas and electric utilities 725 0.6 -0.2 3.8 2.8 6.0 491,3 (pt) Electric utilities 545 1.2 1.3 4.2 5.1 6.5 492,3 (pt) Gas utilities 180 -0.5 -3.6 2.2 -4.5 3.6 Trade 5093 Scrap and waste materials 156 (3)5.0 1.8 2.0 -1.6 1.1 525 Hardware stores 182 2.7 1.1 -0.7 7.3 -7.1 531 Department stores 2,348 3.3 2.2 2.7 2.0 0.5 533 Variety stores 141 -3.1 1.9 1.0 -5.8 -0.7 54 Food stores 3,515 -0.6 -0.8 -1.0 -0.3 -1.7 541 Grocery stores 3,082 -0.4 -1.1 -0.7 -0.5 -1.1 546 Retail bakeries 200 -1.8 -2.0 -1.2 0.0 -1.2 551 New and used car dealers 996 0.2 1.9 0.2 0.8 -1.1 553 Auto and home supply stores 395 2.0 2.3 0.8 4.1 3.7 554 Gasoline service stations 669 3.6 3.1 3.0 2.3 3.7 56 Apparel and accessory stores 1,185 2.0 2.3 3.7 3.4 7.0 561 Men's and boys' clothing stores 89 1.0 2.9 1.7 4.5 1.4 562 Women's clothing stores 349 3.6 3.0 4.0 1.6 4.1 565 Family clothing stores 331 -0.2 3.0 4.1 3.0 11.7 566 Shoe stores 208 1.9 1.4 3.1 8.8 2.7 57 Home furniture, furnishings,& equipment stores 1,046 2.0 3.3 5.7 6.6 7.4 571 Furniture and homefurnishings stores 561 1.4 1.1 2.6 1.9 4.9 572,3 Appliance, radio, T.V., and computer stores 486 3.0 6.5 9.2 12.0 9.3 572 Household appliance stores 86 3.4 3.2 3.1 1.1 3.5 573 Radio, television, and computer stores 400 2.5 7.8 10.1 13.4 9.6 58 Eating and drinking places 7,573 -0.6 -0.2 -0.3 -1.6 0.8 591 Drug stores and proprietary stores 618 1.7 0.2 -0.2 -1.0 -0.9 592 Liquor stores 141 -0.9 1.4 -0.2 -1.8 5.8 594 Miscellaneous shopping goods stores 1,069 (3)3.2 1.2 2.4 4.1 5.4 See footnotes at end of table. Selected Industries: Employment and annual rates of change in output per hour, selected periods--Continued 1995 Annual percent change in output per hour(2) SIC Code Industry Employment(1) Long-term trends Current trends (thousands) 1973-79 1979-90 1990-95 1993-94 1994-95 Finance and services 602 Commercial banks 1,467 0.6 2.0 3.5 0.0 4.1 701 Hotels and motels 1,631 1.2 -1.2 3.4 3.9 2.0 721 Laundry, cleaning, and garment services 499 -0.1 -0.8 0.8 2.0 3.1 723,4 Beauty and barber shops 784 1.5 0.8 1.9 4.1 3.6 723 Beauty shops 722 0.7 0.7 1.6 4.8 3.7 753 Automotive repair shops 826 -0.7 0.2 1.7 7.3 5.4 n.a. = not available. (1) Employment figures are based primarily on data from the BLS Current Employment Statistics (CES) program and the Current Population Survey (CPS). Data on proprietors and unpaid family workers from the CPS are included in the figures for most trade and services industries and, as a result, these figures will differ from those published by the CES program, which covers payroll employment exclusively. (2) Output per employee hour is measured in all cases except: (1) output per employee is used for SIC 4213, SIC 4213 (part), and SIC 4512, 13, 22 (parts); and (2) output per hour of all persons is used for all trade and services industries except SIC 531 and SIC 551. (3) 1977 to 1979. (4) 1982 to 1990. (5) 1990 to 1993. (6) 1979 to 1989. (7) Employee hours in SIC 43 are based on the number of full-time equivalent (FTE) employee years, as reported in the U.S. Postal Service budget. FTE employee years are computed by dividing total hours of full-time, part-time, and intermittent workers by the number of hours in a standard work year.