USDL 05-177 TRANSMISSION OF THIS MATERIAL IS EMBARGOED UNTIL 8:30 A.M. EST, THURSDAY, FEBRUARY 3, 2005 Internet address: http://www.bls.gov/lpc/ Historical, technical information: (202) 691-5606 Current data: (202) 691-5200 Media contact: (202) 691-5902 PRODUCTIVITY AND COSTS Preliminary Fourth Quarter and Annual Averages for 2004 The Bureau of Labor Statistics of the U.S. Department of Labor today reported preliminary productivity data--as measured by output per hour of all persons--for the fourth quarter and for the full year 2004. The seasonally adjusted annual rates of productivity change in the fourth quarter and the annual average changes were: Fourth Annual averages quarter 2003-2004 Business sector 2.5 4.0 Nonfarm business sector 0.8 4.1 In the fourth quarter, productivity increased 2.5 percent in the business sector--about the same as in the third quarter, when it increased 2.4 percent (seasonally adjusted annual rates). In nonfarm businesses, productivity grew more slowly in the fourth quarter, 0.8 percent, than in the third quarter, when it rose 1.8 percent. On an annual average basis, productivity rose 4.0 percent in the business sector and 4.1 percent in the nonfarm business sector. In the manufacturing sector, increases in productivity were: Fourth Annual averages quarter 2003-2004 Manufacturing sector 5.6 4.9 Durable goods manufacturing 7.3 6.1 Nondurable goods manufacturing 3.7 3.9 Manufacturing productivity grew 5.6 percent in the fourth quarter. On an annual average basis, output per hour in the manufacturing sector posted a 4.9-percent increase in 2004. Output and hours in manufacturing, which includes about 13 percent of U.S. business-sector employment, tend to vary more from quarter to quarter than data for the aggregate business and nonfarm business sectors. Fourth-quarter productivity and related measures are summarized in table A, and annual average data in table B. Detailed information is presented in tables 1 through 5. ------------------------------------------------------------------------------ Table A. Productivity and costs: Preliminary fourth-quarter 2004 measures (Seasonally adjusted annual rates) ------------------------------------------------------------------------------ Real Hourly hourly Unit Produc- compen- compen- labor Sector tivity Output Hours sation sation costs ------------------------------------------------------------------------------ Percent change from preceding quarter Business 2.5 3.3 0.8 4.2 0.8 1.7 Nonfarm business 0.8 2.8 1.9 3.1 -0.3 2.3 Manufacturing 5.6 4.5 -1.0 6.0 2.5 0.4 Durable 7.3 6.6 -0.6 6.1 2.6 -1.1 Nondurable 3.7 2.0 -1.7 5.7 2.2 2.0 ------------------------------------------------------------------------------ Percent change from same quarter a year ago Business 2.9 4.2 1.3 4.0 0.6 1.1 Nonfarm business 2.5 4.2 1.6 3.6 0.2 1.0 Manufacturing 4.8 5.0 0.2 3.2 -0.2 -1.5 Durable 5.4 6.7 1.2 2.4 -0.9 -2.8 Nondurable 4.4 2.9 -1.4 4.4 1.0 0.1 ------------------------------------------------------------------------------ The data sources and methods used in the preparation of the manufacturing series differ from those used in preparing the business and nonfarm business series, and these measures are not directly comparable. Output measures for business and nonfarm business are based on measures of gross domestic product prepared by the Bureau of Economic Analysis of the U.S. Department of Commerce. Quarterly output measures for manufacturing reflect indexes of industrial production prepared by the Board of Governors of the Federal Reserve System. See Technical Notes for further information on data sources. THIRD-TO-FOURTH QUARTER CHANGES, 2004 Business Productivity in the business sector increased by 2.5 percent in the fourth quarter of 2004, reflecting increases of 3.3 percent in output and 0.8 percent in hours of all persons (seasonally adjusted annual rates). Output per hour had increased 2.4 percent in the third quarter, as output and hours increased 4.5 percent and 2.0 percent, respectively. Hourly compensation grew 4.2 percent in the fourth quarter of 2004, following a 3.8-percent increase one quarter earlier. This measure includes wages and salaries, supplements, employer contributions to employee-benefit plans, and taxes. Real hourly compensation, which takes into account changes in consumer prices, rose 0.8 percent in the fourth quarter, and 1.9 percent in the third quarter, of 2004. Unit labor costs, which relate hourly compensation to output per hour, increased 1.7 percent in the fourth quarter. Business sector unit labor costs had increased 1.3 percent in the third quarter of 2004. Nonfarm business In the nonfarm business sector, productivity increased 0.8 percent in the fourth quarter of 2004, as output grew 2.8 percent and hours of all persons grew 1.9 percent (seasonally adjusted annual rates). Productivity had increased 1.8 percent in the third quarter of 2004, reflecting a 4.2- percent rise in output and 2.4-percent growth in hours of all persons (table 2). The fourth-quarter 0.8-percent increase in productivity was the smallest since the first quarter of 2001, when nonfarm business output per hour declined 0.4 percent. Hourly compensation in the nonfarm business sector rose 3.1 percent in the fourth quarter of 2004, following a 3.5-percent increase in the third quarter. When changes in consumer prices were taken into account, real hourly compensation declined 0.3 percent during the fourth quarter of 2004 and increased 1.6 percent in the third quarter. Unit labor costs increased 2.3 percent in the fourth quarter, after rising 1.6 percent in the third quarter of 2004. The implicit price deflator for nonfarm business output increased 2.0 percent in the fourth quarter of 2004, after increasing 1.8 percent one quarter earlier. Manufacturing Manufacturing productivity grew 5.6 percent (seasonally adjusted annual rate) in the fourth quarter of 2004 as output increased 4.5 percent and hours decreased 1.0 percent (table 3). In the third quarter, manufacturing productivity increased 4.2 percent, reflecting a 4.0-percent rise in output and a 0.1-percent decline in hours. In durable goods manufacturing, productivity rose 7.3 percent in the fourth quarter as output grew 6.6 percent and hours decreased 0.6 percent (table 4). Among nondurable goods manufacturers, productivity increased 3.7 percent in the fourth quarter as output rose 2.0 percent and hours at work in the sector fell 1.7 percent (table 5). Average hourly compensation of manufacturing workers increased 6.0 percent in the fourth quarter of 2004, reflecting increases in hourly compensation of 6.1 percent in durable goods manufacturing and 5.7 percent in nondurable goods manufacturing. When the increase in consumer prices was taken into account, real hourly compensation in total manufacturing rose 2.5 percent. Unit labor costs for the manufacturing sector rose 0.4 percent in fourth- quarter 2004. In durable goods manufacturing, unit labor costs fell 1.1 percent, and in nondurable goods manufacturing unit labor costs increased 2.0 percent. ANNUAL AVERAGE CHANGES, 2003-2004 Business Business sector productivity increased 4.0 percent when the annual average for 2004 was compared with the annual average for 2003 (table B). Output increased 5.1 percent and hours of all persons engaged in the sector rose 1.0 percent. Productivity had increased 4.5 percent in 2003, when output rose 3.8 percent and hours fell 0.7 percent. The 4.5-percent productivity increase in 2003 was the largest in the sector since a 4.6- percent rise in 1962. ------------------------------------------------------------------------------ Table B. Annual average changes in productivity and related measures, 1995-2004 ------------------------------------------------------------------------------ Measure 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 ------------------------------------------------------------------------------ Business: Productivity 0.2 2.9 1.9 2.7 2.9 2.9 2.5 4.3 4.5 4.0 Output 2.9 4.6 5.3 4.8 5.1 3.9 0.3 1.8 3.8 5.1 Hours 2.7 1.6 3.4 2.1 2.2 1.0 -2.1 -2.4 -0.7 1.0 Hourly compensation 2.0 3.4 3.2 6.0 4.8 7.1 4.2 3.2 4.1 4.3 Real hourly compensation -0.4 0.7 1.0 4.6 2.6 3.6 1.3 1.5 1.8 1.6 Unit labor costs 1.9 0.5 1.3 3.3 1.8 4.0 1.6 -1.1 -0.4 0.3 ----------------------------------------------------------------------------- Nonfarm Business: Productivity 0.5 2.7 1.6 2.7 2.8 2.8 2.5 4.4 4.4 4.1 Output 3.2 4.5 5.2 5.0 5.2 3.8 0.4 1.8 3.8 5.3 Hours 2.7 1.8 3.5 2.2 2.3 1.0 -2.0 -2.5 -0.6 1.1 Hourly compensation 2.1 3.4 3.1 5.9 4.6 7.1 4.0 3.3 4.1 4.2 Real hourly compensation -0.3 0.7 0.9 4.5 2.5 3.6 1.1 1.6 1.7 1.5 Unit labor costs 1.6 0.7 1.4 3.2 1.8 4.2 1.5 -1.1 -0.4 0.1 ----------------------------------------------------------------------------- Manufacturing: Productivity 3.6 3.6 3.6 4.8 3.6 4.7 2.1 7.6 5.0 4.9 Output 4.5 3.2 5.5 4.5 2.9 3.0 -4.6 -0.1 0.0 4.8 Hours 0.8 -0.4 1.8 -0.3 -0.6 -1.6 -6.5 -7.1 -4.8 -0.1 Hourly compensation 1.9 1.9 2.6 5.8 3.9 9.1 2.3 6.7 8.5 3.6 Real hourly compensation -0.5 -0.8 0.5 4.3 1.8 5.6 -0.4 5.0 6.1 0.9 Unit labor costs -1.7 -1.6 -0.9 1.0 0.3 4.2 0.2 -0.8 3.3 -1.3 ------------------------------------------------------------------------------ Hourly compensation in the business sector increased 4.3 percent in 2004, following a 4.1-percent increase in 2003. Real hourly compensation increased 1.6 percent in 2004 and 1.8 percent one year earlier. Unit labor costs in the business sector rose 0.3 percent in 2004 and fell 0.4 percent in 2003. The implicit price deflator for the business sector rose 1.7 percent in 2004 and 1.3 percent in 2003. Nonfarm business Productivity increased 4.1 percent in the nonfarm business sector in 2004, reflecting increases of 5.3 percent in output and 1.1 percent in hours. During 2003, output per hour increased 4.4 percent in nonfarm business, as output rose 3.8 percent and hours of all persons fell 0.6 percent. Nonfarm productivity also had increased 4.4 percent in 2002. When the productivity increases for 2002, 2003, and 2004 are combined, productivity for the 2001- 2004 period rose 4.3 percent in nonfarm businesses. The last comparable three-year rise occurred over the 1948-1951 period, when productivity increased at a 4.2 percent annual rate, incorporating gains of 3.3 percent in 1949, 6.6 percent in 1950, and 2.7 percent in 1951. In 2004, hourly compensation increased 4.2 percent, similar to the 4.1- percent rise in 2003. When the increase in consumer prices was taken into account, real hourly compensation rose 1.5 percent in 2004 and 1.7 percent in 2003. Unit labor costs in the nonfarm business sector edged up 0.1 percent in 2004, following a 0.4-percent decline in 2003. The implicit price deflator for nonfarm business rose 1.6 percent in 2004 and 1.1 percent in 2003. Manufacturing In manufacturing, labor productivity rose 4.9 percent in 2004, as output grew 4.8 percent and hours of all persons declined 0.1 percent (table B). Although productivity had increased at a similar rate in 2003, 5.0 percent, that productivity gain was due almost entirely to falling hours, as output was unchanged. There was a 6.1-percent increase in durable goods manufacturing productivity in 2004, as output rose 7.1 percent and hours rose 0.9 percent. Nondurable goods manufacturing posted a more modest increase in productivity, 3.9 percent, reflecting an increase in output of 2.1 percent and a decrease in hours of 1.8 percent. Hourly compensation of manufacturing workers increased 3.6 percent in 2004, down from the 8.5-percent growth rate in 2003. In 2004, hourly compensation rose 2.9 percent in durable goods manufacturing and 4.8 percent in nondurable good manufacturing. Taking into account the rise in consumer prices, real hourly compensation in manufacturing rose 0.9 percent in 2004 and 6.1 percent one year earlier. Unit labor costs in manufacturing fell 1.3 percent in 2004. These costs had increased 3.3 percent in calendar year 2003. Unit labor costs in durable goods manufacturing fell 3.0 percent in 2004, compared with a 0.8-percent rise in unit labor costs in nondurable goods manufacturing. Revised Measures Current and previous measures for the third quarter of 2004 for the business and nonfarm business sectors are compared in table C. In the business and nonfarm business sectors, productivity, output, and hours growth in the third quarter were the same as reported on Dec. 7. Also in both of these sectors, hourly compensation and real hourly compensation grew less than reported in December. Because hourly compensation was revised down while productivity was unchanged, unit labor costs in the third quarter increased less than previously reported. ------------------------------------------------------------------------------ Table C. Previous and revised productivity and related measures Quarterly percent change at seasonally adjusted annual rate ------------------------------------------------------------------------------ Real Hourly hourly Unit Produc- compen- compen- labor Sector tivity Output Hours sation sation costs ------------------------------------------------------------------------------ Third quarter 2004 Business: Previous 2.4 4.5 2.0 4.0 2.1 1.5 Current 2.4 4.5 2.0 3.8 1.9 1.3 Nonfarm business: Previous 1.8 4.2 2.4 3.6 1.8 1.8 Current 1.8 4.2 2.4 3.5 1.6 1.6 Manufacturing: Previous 4.6 4.5 -0.1 4.6 2.7 0.0 Current 4.2 4.0 -0.1 4.5 2.6 0.3 ------------------------------------------------------------------------------ In the manufacturing sector, output and productivity were revised down in the third quarter, and hours of all persons were unchanged. Growth in hourly compensation and real hourly compensation were also revised down. Because the downward revision to productivity was greater than that to hourly compensation, unit labor costs were revised up. Manufacturing sector productivity and costs measures reflect revised source data. Revised indexes of industrial production were published by the Board of Governors of the Federal Reserve System on Dec. 22. Incorporating the revised data impacted quarterly measures of output, productivity, and unit labor costs back to 1987 and annual measures for 2002 and 2003. Also, revised data on manufacturing compensation for 1987-1997 were provided by the U.S. Department of Commerce on a NAICS rather than SIC basis for the first time. Annual and quarterly measures of hourly compensation, real hourly compensation, and unit labor costs were subject to revision from this source back to 1987. Annual historical data for manufacturing, durable manufacturing, and nondurable manufacturing are presented in appendix tables 1-3. Tables showing the quarterly and annual data for all years, 1987-2004, will be posted on the BLS website later today. Revised measures: Nonfinancial Corporations Revised third-quarter productivity and output measures for nonfinancial corporations also were announced today. In the third quarter, output and productivity increased less, and hours increased more, than reported on Dec. 7. Hourly compensation was revised down less than was productivity, resulting in a smaller decline in unit labor costs than previously reported (table D). ------------------------------------------------------------------------------ Table D. Nonfinancial corporations: Previous and revised productivity and cost measures Quarterly percent changes at seasonally adjusted annual rates ------------------------------------------------------------------------------ Real Hourly hourly Unit Implicit Produc- compen- compen- labor Unit price tivity Output Hours sation sation costs profits deflator ------------------------------------------------------------------------------ Third quarter 2004 Previous 4.2 5.6 1.3 4.0 2.1 -0.3 0.9 0.3 Current 3.9 5.4 1.4 3.8 1.9 -0.1 0.6 0.2 ------------------------------------------------------------------------------ The measure of output for the nonfinancial corporate sector has been revised by the Bureau of Economic Analysis (BEA), U.S. Department of Commerce. As a result, several measures for this sector were revised back to 1958. Recent quarterly and annual data for nonfinancial corporations are shown in table 6. Appendix table 4 provides complete annual measures. And full quarterly and annual historical series will be posted on the BLS website later today. Upcoming changes to productivity and cost data Later this year, BLS will improve the way it uses data for farm workers, the nonfarm self- employed, and nonfarm unpaid family workers in the productivity program by accounting for the effects of multiple jobholding. Current measures treat all hours worked by individuals whose primary job is in these groups as being on the primary job. This may overstate the hours of some workers while omitting the hours of others. The revised measures will be adjusted in two ways. First, hours worked by these workers in their primary jobs will be used in each measure. Secondly, the hours of all persons who hold more than one job will be examined. Hours worked in secondary jobs by the self-employed, unpaid family workers, and farm wage and salary workers will be included in the hours used for the productivity and cost measures. The aggregate effect of these changes is small. Next release date The next release of Productivity and Costs is scheduled for 8:30 A.M. EST, Thursday, March 3, 2005. Revised fourth-quarter and annual average measures for business, nonfarm business, and manufacturing will be released at that time. TECHNICAL NOTES Labor Hours: Hours data for the labor productivity and cost measures include hours for all persons working in the sector-wage and salary workers, the self- employed, and unpaid family workers. The primary source of hours and em- ployment data is the BLS Current Employment Statistics (CES) program, which provides monthly survey data on the number of jobs held by wage and salary workers in nonfarm establishments. The CES also provides average weekly paid hours of production and nonsupervisory workers in these establishments. Weekly paid hours are adjusted to hours at work using data from the National Compensation Survey (NCS). The BLS Hours at Work survey, conducted for this purpose, was used for years prior to 2001. The Office of Productivity and Technology estimates average weekly hours at work for nonproduction and supervisory workers using information from the Current Population Survey (CPS), the CES, and the NCS. Data from the CPS are used for farm labor, nonfarm proprietors, and nonfarm unpaid family workers. Estimates of labor input for government enter prises are derived from the CPS, the CES, and the National Income and Product Accounts (NIPA) prepared by the Bureau of Economic Analysis (BEA) of the Department of Commerce. Output: Business sector output is an annual-weighted index constructed after excluding from gross domestic product (GDP) the following outputs: general government, nonprofit institutions, and private households (including owner- occupied housing). Corresponding exclusions also are made in labor inputs. Business output accounted for about 78 percent of the value of GDP in 2000. Nonfarm business, which also excludes farming, accounted for about 77 percent of GDP in 2000. Annual indexes for manufacturing and its durable and nondurable goods components are constructed by deflating current-dollar industry value of production data from the U.S. Bureau of the Census with deflators from the BEA. These deflators are based on data from the BLS producer price program and other sources. The industry shipments are aggregated using annual weights, and intrasector transactions are removed. Quarterly manufacturing output measures are based on the index of industrial production prepared monthly by the Board of Governors of the Federal Reserve System, adjusted to be consistent with annual indexes of manufacturing sector output prepared by BLS. Durables include the following 3-digit NAICS industries: wood product manufacturing; nonmetallic mineral product manufacturing; primary metal manufacturing; fabricated metal product manufacturing; machinery manufac turing; computer and electronic product manufacturing; electrical equipment and appliance manufacturing; transportation equipment manufacturing; furniture and related product manufacturing; and miscellaneous manufacturing. Nondurables include: food manufacturing; beverage and tobacco product manufac- turing; textile mills; textile product mills; apparel manufacturing; leather and allied product manufacturing; paper manufacturing; printing and related support activities; petroleum and coal products manufacturing; chemical manu- facturing; and plastics and rubber products manufacturing. Nonfinancial corporate output is an annual-weighted index calculated on the basis of the costs incurred and the incomes earned from production. The output measure excludes the following outputs from GDP: general government; nonprofit institutions; private households; unincorporated business; and those corporations classified as offices of bank holding companies, offices of other holding companies, or offices in the finance and insurance sector. Nonfinancial corporations accounted for about 54 percent of the value of GDP in 2000. Productivity: These productivity measures describe the relationship between real output and the labor time involved in its production. They show the changes from period to period in the amount of goods and services produced per hour. Although these measures relate output to hours at work of all persons engaged in a sector, they do not measure the specific contribution of labor, capital, or any other factor of production. Rather, they reflect the joint effects of many influences, including changes in technology; capital investment; level of output; utilization of capacity, energy, and materials; the organization of production; managerial skill; and the characteristics and effort of the work force. Information in this release will be made available to sensory-impaired individuals upon request. Voice phone: 202-691-5606; Federal Relay Service number: 1-800-877-8339. Table 1. Business sector: Productivity, hourly compensation, unit labor costs, and prices, seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit Unit non- Implicit and hour of of all tion per tion per labor labor pay- price quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4) --------------------------------------------------------------------------------------------------------- Indexes 1992=100 2002 I 122.7 142.2 115.9 143.2 115.2 116.7 113.4 115.5 II 123.2 142.9 116.0 144.4 115.2 117.2 113.6 115.9 III 124.7 144.3 115.7 145.0 115.0 116.3 115.7 116.1 IV 125.0 144.7 115.7 145.5 114.8 116.3 116.8 116.5 ANNUAL 123.9 143.5 115.8 144.5 115.0 116.6 114.9 116.0 2003 I 126.2 145.5 115.3 147.4 115.3 116.8 117.7 117.1 II 128.6 147.5 114.7 149.6 116.8 116.4 119.0 117.3 III 131.2 150.8 114.9 151.7 117.7 115.6 120.8 117.5 IV 132.0 152.3 115.4 153.2 118.7 116.0 120.7 117.8 ANNUAL 129.5 149.0 115.1 150.5 117.1 116.2 119.6 117.4 2004 I 133.3 154.3 115.8 154.2 118.4 115.7 122.9 118.4 II 134.2 155.8 116.1 156.2 118.6 116.4 124.4 119.4 III 135.0 157.5 116.6 157.7 r119.1 116.8 r124.6 r119.7 IV 135.8 158.8 116.9 159.3 119.3 117.3 125.3 120.3 ANNUAL 134.7 156.6 116.3 156.9 118.9 116.5 124.3 119.4 --------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2002 I 5.9 3.5 -2.3 4.9 3.5 -1.0 1.0 -0.3 II 1.7 2.1 0.4 3.4 -0.1 1.7 1.0 1.4 III 4.8 3.8 -1.0 1.6 -0.7 -3.1 7.3 0.7 IV 1.2 1.2 0.0 1.3 -0.6 0.0 3.8 1.4 ANNUAL 4.3 1.8 -2.4 3.2 1.5 -1.1 4.5 0.9 2003 I 3.9 2.2 -1.6 5.5 1.7 1.6 3.1 2.1 II 7.6 5.6 -1.9 6.1 5.4 -1.4 4.5 0.8 III 8.5 9.3 0.7 5.6 3.1 -2.6 6.3 0.7 IV 2.4 4.2 1.7 4.0 3.3 1.6 -0.4 0.8 ANNUAL 4.5 3.8 -0.7 4.1 1.8 -0.4 4.1 1.3 2004 I 3.9 5.3 1.3 2.8 -0.8 -1.1 7.4 2.1 II 2.9 3.9 1.0 5.2 0.5 2.3 5.0 3.3 III 2.4 4.5 2.0 r3.8 r1.9 r1.3 r0.7 r1.1 IV 2.5 3.3 0.8 4.2 0.8 1.7 2.4 2.0 ANNUAL 4.0 5.1 1.0 4.3 1.6 0.3 4.0 1.7 --------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2002 I 4.9 0.8 -3.9 3.2 1.9 -1.6 6.6 1.2 II 4.0 1.1 -2.8 3.4 2.1 -0.6 3.5 0.9 III 4.9 2.8 -2.0 3.3 1.6 -1.6 5.0 0.8 IV 3.4 2.7 -0.7 2.8 0.5 -0.6 3.2 0.8 ANNUAL 4.3 1.8 -2.4 3.2 1.5 -1.1 4.5 0.9 2003 I 2.9 2.3 -0.6 2.9 0.1 0.0 3.8 1.4 II 4.4 3.2 -1.1 3.6 1.4 -0.7 4.7 1.3 III 5.3 4.5 -0.7 4.6 2.4 -0.6 4.4 1.3 IV 5.6 5.3 -0.3 5.3 3.4 -0.3 3.4 1.1 ANNUAL 4.5 3.8 -0.7 4.1 1.8 -0.4 4.1 1.3 2004 I 5.6 6.1 0.5 4.6 2.7 -0.9 4.4 1.1 II 4.4 5.6 1.2 4.4 1.5 0.0 4.5 1.7 III 2.9 4.4 1.5 4.0 1.2 r1.0 r3.1 1.8 IV 2.9 4.2 1.3 4.0 0.6 1.1 3.8 2.1 ANNUAL 4.0 5.1 1.0 4.3 1.6 0.3 4.0 1.7 --------------------------------------------------------------------------------------------------------- See footnotes following Table 6. February 3, 2005 r=revised Source: Bureau of Labor Statistics Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs, and prices, seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit Unit non- Implicit and hour of of all tion per tion per labor labor pay- price quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4) --------------------------------------------------------------------------------------------------------- Indexes 1992=100 2002 I 122.4 142.6 116.5 142.6 114.7 116.4 115.1 116.0 II 122.8 143.2 116.7 143.8 114.7 117.1 115.4 116.5 III 124.1 144.5 116.4 144.3 114.4 116.2 117.7 116.8 IV 124.6 145.0 116.4 144.7 114.3 116.1 118.9 117.2 ANNUAL 123.5 143.9 116.5 143.8 114.5 116.5 116.8 116.6 2003 I 125.8 145.9 116.0 146.6 114.7 116.6 119.6 117.7 II 127.8 147.8 115.6 148.7 116.1 116.3 120.4 117.8 III 130.6 151.1 115.7 150.9 117.1 115.5 122.3 118.0 IV 131.7 152.8 116.1 152.5 118.2 115.9 121.9 118.1 ANNUAL 129.0 149.4 115.8 149.7 116.5 116.1 121.1 117.9 2004 I 132.8 155.0 116.7 153.3 117.7 115.4 124.3 118.7 II 134.1 156.5 116.7 155.5 118.0 115.9 125.7 119.6 III 134.7 158.2 117.4 r156.8 118.5 r116.4 r126.3 r120.1 IV 135.0 159.3 118.0 158.0 118.4 117.1 126.8 120.7 ANNUAL 134.2 157.2 117.1 156.0 118.2 116.2 125.8 119.8 --------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2002 I 6.9 4.0 -2.7 5.5 4.1 -1.4 1.6 -0.3 II 1.1 1.7 0.6 3.4 -0.1 2.3 1.0 1.8 III 4.5 3.6 -0.9 1.5 -0.8 -2.9 8.0 1.0 IV 1.6 1.4 -0.2 1.2 -0.6 -0.3 4.2 1.3 ANNUAL 4.4 1.8 -2.5 3.3 1.6 -1.1 4.7 1.0 2003 I 3.7 2.4 -1.3 5.3 1.5 1.6 2.4 1.9 II 6.7 5.3 -1.4 5.7 5.0 -1.0 2.9 0.5 III 9.0 9.3 0.3 6.1 3.6 -2.7 6.3 0.6 IV 3.1 4.6 1.4 4.4 3.6 1.2 -1.2 0.3 ANNUAL 4.4 3.8 -0.6 4.1 1.7 -0.4 3.7 1.1 2004 I 3.7 5.7 2.0 2.0 -1.6 -1.6 8.0 2.0 II 3.9 4.2 0.3 5.9 1.1 1.9 4.6 2.9 III 1.8 4.2 2.4 r3.5 r1.6 r1.6 r2.1 r1.8 IV 0.8 2.8 1.9 3.1 -0.3 2.3 1.6 2.0 ANNUAL 4.1 5.3 1.1 4.2 1.5 0.1 3.9 1.6 --------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2002 I 5.1 0.9 -4.0 3.2 2.0 -1.8 6.7 1.2 II 4.0 1.0 -2.9 3.5 2.2 -0.5 3.4 0.9 III 4.8 2.6 -2.1 3.4 1.7 -1.3 5.2 1.0 IV 3.5 2.7 -0.8 2.9 0.6 -0.6 3.7 1.0 ANNUAL 4.4 1.8 -2.5 3.3 1.6 -1.1 4.7 1.0 2003 I 2.7 2.3 -0.5 2.9 0.0 0.1 3.9 1.5 II 4.1 3.2 -0.9 3.4 1.2 -0.7 4.4 1.2 III 5.2 4.6 -0.7 4.6 2.4 -0.6 3.9 1.1 IV 5.6 5.4 -0.2 5.4 3.4 -0.2 2.5 0.8 ANNUAL 4.4 3.8 -0.6 4.1 1.7 -0.4 3.7 1.1 2004 I 5.6 6.2 0.6 4.5 2.6 -1.0 3.9 0.8 II 4.9 6.0 1.0 4.6 1.7 -0.3 4.4 1.5 III 3.1 4.7 1.5 r3.9 1.2 0.8 r3.3 r1.8 IV 2.5 4.2 1.6 3.6 0.2 1.0 4.1 2.2 ANNUAL 4.1 5.3 1.1 4.2 1.5 0.1 3.9 1.6 --------------------------------------------------------------------------------------------------------- See footnotes following Table 6. February 3, 2005 r=revised Source: Bureau of Labor Statistics Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs, seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit and hour of of all tion per tion per labor quarter all persons Output persons hour (1) hour (2) costs -------------------------------------------------------------------------------------------------- Indexes 1992=100 2002 I r144.5 r131.1 90.7 r143.8 r115.7 r99.6 II r146.4 r132.4 90.4 r146.7 r117.0 r100.2 III r148.7 r133.2 89.5 r148.3 r117.6 r99.7 IV r149.7 r132.1 88.2 r149.6 r118.1 r99.9 ANNUAL r147.3 r132.2 89.7 r147.1 r117.1 r99.8 2003 I r151.6 r131.8 87.0 r155.4 r121.6 r102.6 II r152.7 r130.7 85.6 r158.2 r123.5 r103.6 III r156.7 r132.1 84.3 r161.3 r125.2 r103.0 IV r158.1 r134.2 84.9 r163.6 r126.7 r103.5 ANNUAL r154.7 r132.2 85.4 r159.6 r124.2 r103.2 2004 I r158.8 r136.0 85.6 r161.9 r124.3 r101.9 II r161.7 r138.0 85.3 r164.6 r124.9 r101.8 III r163.4 r139.4 85.3 r166.4 r125.7 r101.8 IV 165.6 140.9 85.1 168.8 126.5 101.9 ANNUAL 162.4 138.6 85.3 165.4 125.4 101.9 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2002 I r10.9 r3.2 -6.9 14.2 12.7 r3.0 II r5.5 r4.1 -1.3 8.2 4.5 r2.5 III r6.6 r2.4 -3.9 4.5 2.1 r-1.9 IV r2.7 r-3.2 -5.7 3.5 1.6 r0.8 ANNUAL r7.6 r-0.1 -7.1 6.7 5.0 r-0.8 2003 I r5.0 r-0.9 -5.6 16.6 12.3 r11.0 II r3.0 r-3.4 -6.3 7.4 6.7 r4.2 III r10.8 r4.5 -5.7 8.1 5.6 r-2.4 IV r3.7 r6.6 2.8 5.7 4.9 r2.0 ANNUAL r5.0 r0.0 -4.8 8.5 6.1 r3.3 2004 I r1.9 r5.4 3.4 -4.1 -7.4 r-5.9 II r7.5 r5.9 -1.4 6.8 2.0 r-0.6 III r4.2 r4.0 -0.1 r4.5 r2.6 r0.3 IV 5.6 4.5 -1.0 6.0 2.5 0.4 ANNUAL 4.9 4.8 -0.1 3.6 0.9 -1.3 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2002 I r7.3 r-2.8 -9.4 4.1 2.8 r-3.0 II r8.0 r-0.5 -7.9 7.0 5.6 r-0.9 III r8.6 r1.5 -6.6 8.2 6.5 r-0.3 IV r6.3 r1.6 -4.5 7.5 5.1 r1.1 ANNUAL r7.6 r-0.1 -7.1 6.7 5.0 r-0.8 2003 I r4.9 0.6 -4.2 8.1 5.1 r3.0 II r4.3 -1.3 -5.4 7.9 5.6 r3.4 III r5.3 r-0.8 -5.8 8.8 6.5 r3.3 IV 5.6 r1.6 -3.8 9.4 7.3 r3.6 ANNUAL r5.0 r0.0 -4.8 8.5 6.1 r3.3 2004 I 4.8 3.2 -1.5 4.2 2.3 -0.6 II r5.9 r5.6 -0.3 4.0 1.1 r-1.8 III r4.3 r5.5 1.2 r3.1 0.4 r-1.1 IV 4.8 5.0 0.2 3.2 -0.2 -1.5 ANNUAL 4.9 4.8 -0.1 3.6 0.9 -1.3 -------------------------------------------------------------------------------------------------- See footnotes following Table 6. February 3, 2005 r=revised Source: Bureau of Labor Statistics Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs, seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit and hour of of all tion per tion per labor quarter all persons Output persons hour (1) hour (2) costs -------------------------------------------------------------------------------------------------- Indexes 1992=100 2002 I r161.8 r153.1 94.6 r140.8 r113.3 r87.0 II r164.5 r155.3 94.4 r143.8 r114.7 r87.4 III r167.7 r156.6 93.4 r145.0 r115.0 r86.5 IV r170.8 r156.3 91.5 r146.3 r115.5 r85.7 ANNUAL r166.2 r155.3 93.5 r144.0 r114.6 r86.6 2003 I r172.5 r155.7 90.2 r153.4 r120.0 r88.9 II r174.1 r154.3 88.7 r156.4 r122.1 r89.8 III r180.7 r157.6 87.2 r159.6 r123.9 r88.3 IV r182.8 r161.5 88.3 r161.8 r125.3 r88.5 ANNUAL r177.5 r157.3 88.6 r157.8 r122.8 r88.9 2004 I r184.0 r164.6 89.5 r158.8 r121.9 r86.3 II r187.3 r167.1 89.2 r161.7 r122.7 r86.3 III r189.4 r169.5 89.5 r163.3 r123.4 r86.2 IV 192.8 172.3 89.3 165.7 124.2 86.0 ANNUAL 188.4 168.4 89.4 162.4 123.0 86.2 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2002 I r13.1 r4.1 -8.0 8.4 7.0 r-4.1 II r6.7 r6.0 -0.7 8.6 5.0 r1.8 III r8.0 3.3 -4.3 3.5 1.1 r-4.2 IV r7.5 r-0.7 -7.6 3.6 1.7 r-3.6 ANNUAL r8.6 r-0.4 -8.3 5.6 3.9 r-2.8 2003 I r4.2 r-1.6 -5.6 20.8 16.4 r15.9 II r3.7 r-3.4 -6.8 8.0 7.3 r4.2 III r16.1 r8.7 -6.3 8.7 6.1 r-6.4 IV r4.8 r10.1 5.1 5.5 4.7 r0.6 ANNUAL r6.8 r1.3 -5.2 9.6 7.1 r2.6 2004 I r2.6 r8.1 5.4 -7.1 -10.4 r-9.5 II r7.4 r6.0 -1.3 7.4 2.5 r0.0 III r4.6 r6.0 r1.3 r4.1 r2.2 r-0.5 IV 7.3 6.6 -0.6 6.1 2.6 -1.1 ANNUAL 6.1 7.1 0.9 2.9 0.2 -3.0 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2002 I r7.7 r-4.4 -11.2 3.3 2.0 r-4.1 II r8.6 r-1.5 -9.3 6.0 4.7 r-2.4 III r9.3 r1.4 -7.3 7.0 5.2 r-2.2 IV r8.8 r3.2 -5.2 6.0 3.7 r-2.6 ANNUAL r8.6 r-0.4 -8.3 5.6 3.9 r-2.8 2003 I r6.6 r1.7 -4.6 8.9 5.9 r2.2 II r5.8 r-0.6 -6.1 8.7 6.5 r2.8 III r7.8 r0.7 -6.6 10.1 7.7 r2.2 IV r7.1 r3.3 -3.5 10.6 8.5 r3.3 ANNUAL r6.8 r1.3 -5.2 9.6 7.1 r2.6 2004 I 6.7 5.8 -0.8 3.5 1.7 r-2.9 II r7.6 r8.3 0.6 3.4 0.5 r-3.9 III r4.8 r7.6 r2.6 2.3 r-0.4 r-2.4 IV 5.4 6.7 1.2 2.4 -0.9 -2.8 ANNUAL 6.1 7.1 0.9 2.9 0.2 -3.0 -------------------------------------------------------------------------------------------------- See footnotes following Table 6. February 3, 2005 r=revised Source: Bureau of Labor Statistics Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs, seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit and hour of of all tion per tion per labor quarter all persons Output persons hour (1) hour (2) costs -------------------------------------------------------------------------------------------------- Indexes 1992=100 2002 I r127.0 r107.9 85.0 r147.9 r119.0 r116.5 II r128.3 r108.4 84.5 r150.5 r120.1 r117.4 III r129.7 r108.7 83.8 r152.9 r121.3 r117.9 IV r128.4 r106.9 83.3 r154.3 r121.8 120.2 ANNUAL r128.3 r108.0 84.2 r151.4 r120.5 r118.0 2003 I r130.3 r106.9 82.1 r157.7 r123.4 r121.1 II r130.9 r106.0 81.0 r160.2 r125.1 r122.3 III r132.3 r105.9 80.0 r163.0 r126.5 r123.2 IV r133.4 r106.5 79.9 r165.2 r128.0 r123.9 ANNUAL r131.7 r106.3 80.7 r161.5 r125.7 r122.6 2004 I r134.0 r107.1 79.9 r165.9 r127.4 r123.8 II r136.5 r108.6 79.6 r168.1 r127.6 r123.2 III r137.9 r109.0 r79.1 r170.2 r128.6 r123.4 IV 139.2 109.6 78.7 172.6 129.3 124.0 ANNUAL 136.9 108.6 79.3 169.2 128.2 123.6 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2002 I r7.7 r2.2 -5.1 26.5 24.9 r17.4 II r4.2 r1.8 -2.3 7.2 3.6 r2.9 III r4.6 r1.1 -3.3 6.6 4.1 r1.9 IV r-4.0 r-6.4 -2.5 3.7 1.8 r8.0 ANNUAL r5.6 r0.2 -5.2 9.3 7.5 r3.4 2003 I r5.9 r0.1 -5.5 9.1 5.1 r3.0 II r2.1 r-3.5 -5.5 6.3 5.7 r4.2 III r4.2 r-0.6 -4.6 7.2 4.7 r2.9 IV r3.2 r2.4 -0.7 5.6 4.8 r2.4 ANNUAL r2.6 r-1.5 -4.1 6.7 4.3 r3.9 2004 I r1.9 r2.1 0.2 1.5 -2.0 r-0.4 II r7.6 r5.7 -1.7 5.6 0.8 r-1.9 III r4.3 r1.7 r-2.5 r5.0 r3.0 r0.6 IV 3.7 2.0 -1.7 5.7 2.2 2.0 ANNUAL 3.9 2.1 -1.8 4.8 2.0 0.8 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2002 I r5.9 r-0.9 -6.4 6.2 5.0 r0.3 II r6.4 r0.6 -5.4 9.2 7.9 r2.7 III r7.3 r1.5 -5.4 10.9 9.2 r3.4 IV r3.0 r-0.4 -3.3 10.6 8.2 r7.4 ANNUAL r5.6 r0.2 -5.2 9.3 7.5 r3.4 2003 I r2.6 r-0.9 -3.4 6.6 3.6 r3.9 II r2.1 r-2.2 -4.2 6.4 4.2 r4.2 III r2.0 r-2.6 -4.5 6.6 4.3 r4.5 IV r3.9 r-0.4 -4.1 7.1 5.1 r3.1 ANNUAL r2.6 r-1.5 -4.1 6.7 4.3 r3.9 2004 I 2.9 r0.1 -2.7 5.2 3.3 2.2 II r4.2 r2.4 -1.7 5.0 2.1 r0.7 III r4.2 r3.0 r-1.2 r4.4 r1.6 r0.2 IV 4.4 2.9 -1.4 4.4 1.0 0.1 ANNUAL 3.9 2.1 -1.8 4.8 2.0 0.8 -------------------------------------------------------------------------------------------------- See footnotes following Table 6. February 3, 2005 r=revised Source: Bureau of Labor Statistics Table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor costs, unit profits, and prices, seasonally adjusted Output Hourly Real Unit Total Unit Implicit Year per all- compen- hourly Unit non- unit pro- price and employee Employee sation compen- labor labor costs fits deflator quarter hour Output hours (1) sation(2) costs costs(6) (7) (8) (4) ---------------------------------------------------------------------------------------------------------- Indexes 1992=100 2002 I r126.8 r150.2 118.5 139.9 112.6 r110.4 r113.6 r111.3 r88.8 r109.3 II r128.1 r151.7 118.4 141.3 112.7 r110.3 r112.7 r111.0 r94.5 r109.5 III r129.0 r152.2 117.9 142.1 112.7 r110.1 r112.8 r110.9 r95.8 r109.5 IV r129.6 r152.4 117.6 142.9 112.8 r110.2 r112.8 r110.9 r102.3 r110.1 ANNUAL 128.4 151.6 118.1 141.5 112.7 r110.3 113.0 111.0 95.4 109.6 2003 I r130.2 r152.2 116.8 144.1 112.7 r110.7 r114.0 r111.6 r100.0 r110.5 II r132.7 r154.4 116.4 146.3 114.2 r110.3 r112.6 r110.9 r112.2 r111.0 III r135.3 r157.3 116.2 148.5 115.3 r109.8 r112.6 r110.5 r120.3 r111.4 IV r136.8 r159.6 116.7 150.0 116.2 r109.7 r112.2 r110.4 r125.1 r111.7 ANNUAL r133.7 r155.9 116.5 147.3 114.6 r110.1 r112.9 r110.8 r114.6 r111.2 2004 I r137.0 r160.9 117.5 150.9 115.9 r110.2 r111.1 r110.4 r129.9 r112.2 II r138.1 r162.6 117.7 152.9 116.1 r110.7 r111.4 r110.9 r136.3 r113.2 III r139.4 r164.7 r118.2 r154.3 r116.6 r110.7 r111.7 r111.0 r136.5 r113.2 ---------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2002 I r7.5 r5.4 -2.0 1.7 0.4 r-5.4 r-7.0 r-5.9 r91.5 r-1.3 II r4.3 r4.2 -0.1 4.0 0.4 r-0.3 r-3.1 r-1.1 r28.2 r0.8 III r2.9 r1.1 -1.7 2.3 0.0 r-0.6 r0.3 r-0.3 r5.8 r0.1 IV r1.9 r0.7 -1.2 2.2 0.3 r0.3 r0.0 r0.2 r29.9 r2.3 ANNUAL r3.9 r1.0 -2.8 3.1 1.4 r-0.8 r0.3 r-0.5 r16.0 r0.6 2003 I r1.9 r-0.7 -2.5 3.6 -0.2 r1.6 r4.4 r2.4 r-8.8 r1.4 II r7.7 r6.0 -1.5 6.2 5.5 r-1.4 r-4.9 r-2.4 r58.5 r1.8 III r8.2 r7.6 -0.6 6.2 3.6 r-1.9 r0.1 r-1.4 r32.3 r1.4 IV r4.3 r6.0 1.6 4.2 3.4 r-0.1 r-1.5 r-0.5 r16.8 r1.1 ANNUAL r4.2 r2.8 -1.3 4.0 1.7 r-0.1 r-0.1 r-0.1 r20.1 r1.4 2004 I r0.6 r3.4 2.8 2.3 -1.3 r1.6 r-4.0 r0.1 r16.3 r1.6 II 3.3 r4.3 0.9 5.5 0.7 r2.1 1.3 1.9 r21.0 3.8 III r3.9 r5.4 r1.4 r3.8 r1.9 r-0.1 r0.9 r0.1 r0.6 r0.2 ---------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2002 I 3.4 -1.1 -4.3 3.2 2.0 r-0.1 4.0 r1.0 r1.6 1.0 II r3.8 r0.4 -3.2 3.4 2.1 r-0.4 r1.0 r0.0 r8.8 r0.6 III r4.3 r1.9 -2.4 3.1 1.4 r-1.2 r-1.1 r-1.2 r21.4 r0.3 IV r4.1 r2.8 -1.3 2.5 0.3 r-1.5 r-2.5 r-1.8 r35.5 r0.5 ANNUAL r3.9 r1.0 -2.8 3.1 1.4 r-0.8 r0.3 r-0.5 r16.0 r0.6 2003 I r2.7 r1.3 -1.4 3.0 0.1 r0.3 r0.4 r0.3 r12.6 r1.2 II r3.6 r1.8 -1.7 3.6 1.4 r0.0 r-0.1 r0.0 r18.7 r1.4 III r4.9 r3.3 -1.5 4.5 2.3 r-0.4 r-0.2 r-0.3 r25.5 r1.7 IV r5.5 r4.7 -0.8 5.0 3.1 r-0.5 r-0.5 r-0.5 r22.3 r1.4 ANNUAL r4.2 r2.8 -1.3 4.0 1.7 r-0.1 r-0.1 r-0.1 r20.1 r1.4 2004 I r5.2 r5.7 0.5 4.7 2.8 r-0.5 r-2.6 r-1.0 r29.9 r1.5 II r4.1 r5.3 1.2 4.5 1.6 r0.4 r-1.0 r0.0 r21.5 r2.0 III r3.0 r4.7 1.7 r3.9 1.2 r0.9 r-0.8 0.4 r13.4 r1.7 ---------------------------------------------------------------------------------------------------------- See footnotes following Table 6. February 3, 2005 r=revised Source: Bureau of Labor Statistics SOURCES: Output data are from the Bureau of Economic Analysis and the Census Bureau of the U.S. Department of Commerce; the Bureau of Labor Statistics, U.S. Department of Labor; and the Federal Reserve Board. Compensation and hours data are from the Bureau of Labor Statistics and the Bureau of Economic Analysis. RELIABILITY: Productivity and cost measures are regularly revised as more complete information becomes available. The measures are first published within 40 days of the close of the reference period; revisions appear 30 days later, and second revisions after an additional 60 days. In the business sector, the third publication (second revision) of a quarterly index of output per hour of all persons has differed from the initial value by between -1.4 and +1.4 index points approximately 95 percent of the time. This interval is based on the performance of this measure between the fourth quarter of 1995 and the third quarter of 2004. Footnotes, Tables 1-6 (1) Wages and salaries of employees plus employers' contributions for social insurance and private benefit plans. Except for nonfinancial corporations, where there are no self-employed, data also include an estimate of wages, salaries, and supplemental payments for the self- employed. (2) The change for recent quarters is based on the Consumer Price Index for all urban consumers (CPI-U). The trend from 1978-2003 is based on the Consumer Price Index research series (CPI-U-RS). (3) Unit nonlabor payments include profits, consumption of fixed capital, taxes on production and imports less subsidies, net interest and miscellaneous payments, business current transfer payments, rental income of persons, and the current surplus of government enterprises. (4) Current dollar output divided by the output index. (5) Quarterly changes: Percent change compounded at annual rate from the original data rather than index numbers. Annual changes: Percent change between annual average levels. (6) Unit nonlabor costs include consumption of fixed capital, taxes on production and imports less subsidies, net interest and miscellaneous payments, and business current transfer payments. (7) Total unit costs are the sum of unit labor and nonlabor costs. (8) Unit profits include corporate profits before tax with inventory valuation and capital consumption adjustments. Appendix table 1. Manufacturing sector: Productivity, hourly compensation, and unit labor costs, Indexes 1992=100 Real Output per Hours Compensa- compensa- Unit hour of of all tion per tion per labor Year all persons Output persons hour (1) hour (2) costs ----------------------------------------------------------------------------------------------- 1987 88.4 91.7 103.8 r81.3 r98.0 r92.0 1988 90.0 96.3 107.0 r84.1 r97.8 r93.4 1989 90.3 97.2 107.6 r86.6 r96.6 r95.9 1990 92.9 97.6 105.0 r90.5 r96.1 r97.3 1991 95.4 96.0 100.5 r95.6 r98.0 r100.1 1992 100.0 100.0 100.0 100.0 100.0 100.0 1993 102.7 104.1 101.4 r102.0 r99.5 r99.3 1994 106.1 110.0 103.8 r105.3 r100.6 r99.3 1995 109.9 115.0 104.6 r107.3 r100.1 r97.6 1996 113.9 118.6 104.2 r109.3 r99.3 r96.0 1997 118.0 125.1 106.0 r112.2 r99.8 r95.1 1998 123.6 130.7 105.7 r118.7 r104.2 r96.0 1999 128.1 134.6 105.1 r123.4 r106.0 r96.4 2000 134.1 138.6 103.4 r134.7 r112.0 r100.5 2001 136.9 132.3 96.6 r137.8 r111.5 r100.7 2002 r147.3 r132.2 89.7 r147.1 r117.1 r99.8 2003 r154.7 r132.2 85.4 r159.6 r124.2 r103.2 2004 r162.4 r138.6 r85.3 r165.4 r125.4 r101.9 ----------------------------------------------------------------------------------------------- See footnotes following Table 6. February 3, 2005 r=revised Source: Bureau of Labor Statistics Appendix table 2. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs, Indexes 1992=100 Real Output per Hours Compensa- compensa- Unit hour of of all tion per tion per labor Year all persons Output persons hour (1) hour (2) costs ----------------------------------------------------------------------------------------------- 1987 89.3 95.1 106.5 r81.3 r97.9 r91.0 1988 91.2 100.9 110.6 r83.6 r97.2 r91.6 1989 91.1 101.1 111.0 r85.9 r95.8 r94.3 1990 93.2 100.1 107.4 r89.5 r95.0 r96.0 1991 94.5 95.9 101.4 94.9 r97.3 100.4 1992 100.0 100.0 100.0 100.0 100.0 100.0 1993 104.5 106.0 101.4 r101.9 r99.4 r97.4 1994 109.7 114.8 104.7 r105.4 r100.7 r96.1 1995 115.2 122.8 106.6 r106.7 r99.5 r92.6 1996 120.7 129.5 107.3 108.1 98.2 89.5 1997 126.3 139.5 110.5 110.6 98.4 87.6 1998 135.4 150.2 111.0 r117.1 r102.7 r86.5 1999 143.3 158.5 110.6 r122.4 r105.2 r85.4 2000 150.9 165.7 109.8 r134.2 r111.6 r89.0 2001 152.9 155.9 101.9 r136.4 r110.3 r89.2 2002 r166.2 r155.3 93.5 r144.0 r114.6 r86.6 2003 r177.5 r157.3 88.6 r157.8 r122.8 r88.9 2004 r188.4 r168.4 r89.4 r162.4 r123.0 r86.2 ----------------------------------------------------------------------------------------------- See footnotes following Table 6. February 3, 2005 r=revised Source: Bureau of Labor Statistics Appendix table 3. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs, Indexes 1992=100 Real Output per Hours Compensa- compensa- Unit hour of of all tion per tion per labor Year all persons Output persons hour (1) hour (2) costs ----------------------------------------------------------------------------------------------- 1987 90.5 90.2 99.7 r80.8 r97.4 r89.3 1988 92.0 93.3 101.5 r84.2 r98.0 r91.6 1989 92.3 94.7 102.7 r87.1 r97.2 r94.4 1990 94.8 96.1 101.4 r91.7 r97.4 r96.8 1991 97.4 96.6 99.2 r96.5 r98.9 r99.1 1992 100.0 100.0 100.0 100.0 100.0 100.0 1993 100.5 101.9 101.4 r102.3 r99.8 r101.8 1994 102.2 104.5 102.3 r104.7 r100.1 r102.5 1995 104.6 106.3 101.6 r107.8 r100.6 r103.0 1996 107.1 106.5 99.5 r110.8 r100.7 r103.5 1997 110.7 110.0 99.4 r114.1 r101.5 r103.1 1998 113.0 110.6 97.9 r120.3 r105.5 r106.5 1999 113.9 110.3 96.9 r123.6 r106.2 r108.5 2000 118.5 111.1 93.8 r133.2 r110.7 r112.4 2001 121.5 107.8 88.7 r138.6 r112.1 r114.1 2002 r128.3 r108.0 84.2 r151.4 r120.5 r118.0 2003 r131.7 r106.3 80.7 r161.5 r125.7 r122.6 2004 r136.9 r108.6 r79.3 r169.2 r128.2 r123.6 ----------------------------------------------------------------------------------------------- See footnotes following Table 6. February 3, 2005 r=revised Source: Bureau of Labor Statistics Appendix table 4. Nonfinancial corporations: Productivity, hourly compensation, unit labor costs, unit profits, and prices Indexes 1992=100 Output Hourly Real Unit Total Unit Implicit per all- compen- hourly Unit non- unit pro- price employee Employee sation compen labor labor costs fits deflator Year hour Output hours (1) sation(2) costs costs(6) (7) (8) (4) -------------------------------------------------------------------------------------------------------- 1958 r52.8 r25.4 48.0 15.0 67.2 r28.4 r23.5 r27.1 r47.2 r28.9 1959 r55.3 r28.2 50.9 15.6 69.3 r28.1 r22.3 r26.6 r55.8 r29.2 1960 r56.2 r29.1 51.8 16.2 70.8 r28.8 r23.3 r27.3 r50.2 r29.4 1961 r57.9 r29.7 51.3 16.7 72.4 r28.8 r23.8 r27.5 r50.3 r29.5 1962 r60.4 r32.2 53.3 17.4 74.4 r28.7 r23.4 r27.3 r54.5 r29.7 1963 r62.5 r34.1 54.5 17.9 75.7 r28.6 r23.4 r27.2 r57.3 r29.9 1964 r63.5 r36.5 57.5 18.2 76.2 r28.7 r23.3 r27.2 r59.7 r30.1 1965 r65.1 r39.5 60.7 18.8 77.1 r28.8 r23.1 r27.3 r64.1 r30.6 1966 r66.2 r42.3 63.9 19.8 79.2 r29.9 r23.3 r28.2 r63.6 r31.3 1967 r67.1 r43.4 64.6 20.9 81.1 r31.2 r24.7 r29.4 r59.9 r32.2 1968 r69.5 r46.1 66.4 22.5 83.7 r32.4 r26.2 r30.7 r60.0 r33.4 1969 r69.5 r47.9 69.0 24.0 84.8 r34.6 r28.6 r33.0 r54.0 r34.8 1970 r69.8 r47.4 67.9 25.7 85.9 r36.9 r32.2 r35.6 r44.4 r36.4 1971 r72.7 r49.3 67.9 27.3 87.4 r37.6 r33.6 r36.5 r50.5 r37.8 1972 r74.2 r53.1 71.6 28.8 89.2 r38.8 r33.9 r37.5 r54.1 r39.0 1973 r74.8 r56.3 75.2 31.0 90.4 r41.4 r35.7 r39.9 r54.9 r41.2 1974 r73.3 r55.3 75.5 33.9 89.2 r46.3 r41.1 r44.9 r48.4 r45.2 1975 r76.1 r54.6 71.7 37.3 89.7 r49.0 r46.6 r48.3 r63.1 r49.6 1976 r78.5 r58.9 75.0 40.3 91.8 r51.3 r46.4 r50.0 r71.4 r51.9 1977 r80.6 r63.2 78.4 43.5 93.0 r54.0 r48.4 r52.5 r77.3 r54.7 1978 r81.7 r67.4 82.5 47.6 95.1 r58.2 r51.2 r56.4 r79.1 r58.4 1979 r81.0 r69.5 85.8 51.9 94.9 r64.1 r55.8 r61.9 r74.0 r62.9 1980 r80.8 r68.8 85.2 57.2 94.1 r70.8 r64.9 r69.2 r66.9 r69.0 1981 r82.9 r71.6 86.4 62.4 93.9 r75.3 r73.4 r74.8 r81.0 r75.4 1982 83.1 69.9 84.1 66.5 94.4 r80.0 81.3 r80.4 r75.2 r79.9 1983 r85.7 r73.1 85.3 68.9 94.0 r80.4 r81.6 r80.7 r91.2 r81.7 1984 r87.8 r79.7 90.8 71.9 94.3 r81.9 r81.3 r81.7 r107.6 r84.1 1985 r89.6 r83.2 92.9 75.2 95.4 r83.9 r83.6 r83.8 r102.3 r85.5 1986 r91.4 r85.2 93.2 78.9 98.3 r86.3 r86.3 r86.3 r90.2 r86.6 1987 r93.3 r89.7 96.1 81.6 98.3 r87.4 r85.8 r87.0 r100.1 r88.1 1988 r95.7 r94.9 99.1 84.9 98.7 r88.7 r86.8 r88.2 r111.6 r90.3 1989 r94.6 r96.6 102.2 87.0 97.0 r92.0 r93.3 r92.4 r101.2 r93.2 1990 r95.4 r97.8 102.5 91.1 96.8 r95.5 r97.3 r96.0 r96.9 r96.1 1991 r97.4 r97.0 99.6 95.5 97.9 r98.0 r102.7 r99.3 r93.2 r98.7 1992 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1993 r100.3 r102.8 102.4 101.8 99.3 r101.4 r99.9 r101.0 r114.1 r102.2 1994 r102.2 r109.2 106.8 103.6 98.9 r101.3 r100.8 r101.2 r131.7 r103.9 1995 103.3 114.3 110.6 105.3 98.3 r101.9 r101.2 r101.7 136.9 104.9 1996 r107.1 r120.6 112.6 108.5 98.6 r101.3 r100.0 100.9 r150.0 105.3 1997 109.9 128.4 116.9 111.7 99.4 101.7 r99.7 r101.1 r154.3 105.9 1998 r113.5 r135.8 119.7 118.1 103.6 r104.1 r99.5 r102.9 r137.0 r105.9 1999 r117.3 r144.0 122.8 123.5 106.1 r105.3 r100.4 r104.0 r129.1 r106.2 2000 r121.5 r151.5 124.7 132.0 109.7 r108.6 r104.2 r107.4 r108.7 r107.5 2001 r123.5 r150.2 121.5 137.3 111.1 r111.2 r112.6 r111.6 r82.2 r108.9 2002 128.4 151.6 118.1 141.5 112.7 r110.3 113.0 111.0 95.4 109.6 2003 r133.7 r155.9 116.5 147.3 114.6 r110.1 r112.9 r110.8 r114.6 r111.2 -------------------------------------------------------------------------------------------------------- See footnotes following Table 6. February 3, 2005 r=revised Source: Bureau of Labor Statistics 1