TEXT Table 1. Business sector: Productivity, hourly compensation, unit labor costs, Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs, Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs, Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs, Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs, Table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor costs, unit profits, Historical, technical USDL 95-301 information: (202) 606-5606 Transmission of this Current data: (202) 606-7828 material is embargoed Media contact: (202) 606-5902 until 10:00 A.M. EDT Tuesday, August 8, 1995. PRODUCTIVITY AND COSTS Second Quarter 1995 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 second quarter of 1995. The preliminary seasonally-adjusted annual rates of productivity change in the second quarter were: 3.0 percent in the business sector, and 3.0 percent in the nonfarm business sector. In both sectors, productivity and output increased while hours worked fell-- reflecting underlying increases in employment combined with large declines in average weekly hours. In manufacturing, productivity changes in the second quarter were: 2.1 percent in manufacturing, 0.5 percent in durable goods manufacturing, and 4.5 percent in nondurable goods manufacturing. Manufacturing productivity increased in the second quarter of 1995 as both output and hours decreased, with the drop in hours being larger than the drop in output. This pattern also was true for both the durable and nondurable goods subsectors. Output and hours in manufacturing, which includes about 20 percent of U.S. business-sector employment, tend to vary more from quarter to quarter than in the more aggregate business and nonfarm business sector measures. Second-quarter results are summarized in table A and appear in detail in tables 1 through 5. Output measures for business and nonfarm business are based on measures of gross domestic product prepared by the Bureau of Economic Analysis of the U.S. Department of Commerce. Quarterly output measures for manufacturing reflect independent indexes of industrial production prepared by the Board of Governors of the Federal Reserve System. See Technical Notes for further information on data sources (page 5). 2 ------------------------------------------------------------------------------ Table A. Productivity and costs: Preliminary second-quarter 1995 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 3.0 0.4 -2.5 3.8 0.4 0.8 Nonfarm business 3.0 0.6 -2.4 3.6 0.2 0.6 Manufacturing 2.1 -3.8 -5.8 0.3 -2.9 -1.8 Durable 0.5 -3.9 -4.4 -2.6 -5.8 -3.1 Nondurable 4.5 -3.7 -7.8 4.8 1.4 0.3 Percent change from same quarter a year ago Business 3.1 4.2 1.1 3.6 0.5 0.4 Nonfarm business 3.1 4.2 1.1 3.6 0.5 0.4 Manufacturing 3.2 3.7 0.5 2.8 -0.3 -0.4 Durable 3.3 5.0 1.6 2.2 -0.8 -1.1 Nondurable 2.8 1.7 -1.0 3.5 0.4 0.6 ------------------------------------------------------------------------------ Business From the first to the second quarter of 1995, business sector productivity increased at a 3.0 percent annual rate, as output rose 0.4 percent and hours of all persons engaged in the sector fell 2.5 percent (table 1). The 2.5 percent second-quarter decrease in hours reflected an employment gain of 0.2 percent and a 2.6 percent decline in average weekly hours--the biggest decline since a 3.3 percent decrease in the second quarter of 1980. In the first quarter, productivity had increased 2.1 percent as output increased 4.3 percent and hours rose 2.2 percent. Hourly compensation increased 3.8 percent in both the first and second quarters of 1995. This measure includes wages and salaries, supplements, employer contributions to employee benefit plans, and taxes. Unit labor costs, which reflect changes in hourly compensation and productivity, increased at a 0.8 percent annual rate during the second quarter, compared with a 1.7 percent rise during the first quarter. Real hourly compensation, which takes into account changes in the Consumer Price Index for All Urban Consumers (CPI-U), increased at a 0.4 percent annual rate in the second quarter, not much different from the 0.7 percent increase in the first quarter of 1995. 3 The implicit price deflator for the business sector, which reflects changes in unit labor costs and unit nonlabor payments, increased 0.9 percent in the second quarter, compared with a 1.4 percent rise in the first quarter. Nonfarm business Productivity rose 3.0 percent in the nonfarm business sector during the second quarter of 1995, compared with a 2.5 percent increase in the first quarter (table 2). As in the more comprehensive business sector, the productivity increase occurred because a small increase in output (0.6 percent) was combined with a decline in the hours of all persons (2.4 percent). In the nonfarm business sector, employment increased 0.2 percent and average weekly hours fell 2.6 percent. This was the largest drop in average weekly hours since the second quarter of 1980, when a 3.4 percent decline was recorded. During the first quarter of 1995, output in the nonfarm business sector increased 4.5 percent and hours increased 2.0 percent. Hourly compensation increased at a 3.6 percent annual rate in the second quarter, compared with a 4.1 percent increase one quarter earlier. When the rise in the CPI-U is taken into account, real hourly compensation rose 0.2 percent in the second quarter of 1995 and 1.0 percent in the first quarter. Unit labor costs grew 0.6 percent in the second quarter, a smaller increase than the 1.6 percent of the previous quarter. The implicit price deflator for nonfarm business output rose 0.9 percent in the second quarter and 1.3 percent in the first quarter of 1995. Manufacturing Productivity increased 2.1 percent in manufacturing in the second quarter of 1995 and has now increased in 20 straight quarters. Manufacturing output and hours, however, both fell in the second quarter--3.8 and 5.8 percent, respectively (seasonally adjusted annual rates). The decrease in manufacturing output was the first since the first quarter of 1992. Both the durable goods and the nondurable goods sectors had second-quarter productivity gains. The gain recorded in the nondurable goods sector, 4.5 percent, was much higher than that in the durable goods sector, 0.5 percent (tables 4 and 5). Hourly compensation of all manufacturing workers increased 0.3 percent during the second quarter, a smaller gain than the 4.7 percent posted in the first quarter. Real hourly compensation fell 2.9 percent when the increase in consumer prices is taken into account, compared with a 1.6 percent rise in the previous period. Unit labor costs fell at a 1.8 percent annual rate in the second quarter of 1995, the seventh decline in the last 10 quarters. These costs had increased 1.1 percent during the first quarter. 4 ------------------------------------------------------------------------------- Table B. 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 First quarter 1995 Business: Previous.... 2.2 4.4 2.2 4.0 0.9 1.8 Current..... 2.1 4.3 2.2 3.8 0.7 1.7 Nonfarm business: Previous.... 2.7 4.7 2.0 4.3 1.2 1.6 Current..... 2.5 4.5 2.0 4.1 1.0 1.6 Manufacturing: Previous.... 3.4 5.1 1.6 4.7 1.6 1.3 Current..... 3.5 5.2 1.6 4.7 1.6 1.1 Nonfinancial corporations: Previous.... 1.8 4.5 2.7 3.8 0.8 2.0 Current..... 1.7 4.4 2.7 3.4 0.4 1.8 ------------------------------------------------------------------------------- Revised Measures Current and previous measures for the first quarter of 1995 for the business, nonfarm business, manufacturing, and nonfinancial corporate sectors are compared in table B. Hourly compensation and real hourly compensation show smaller increases in the business, nonfarm business, and nonfinancial corporate sectors than were reported on June 14. Next release date The next release of Productivity and Costs is scheduled for 10:00 a.m. EDT, Thursday, September 7, 1995. Revised second-quarter measures for business, nonfarm business, and manufacturing will be released at that time, along with measures for nonfinancial corporations. ------------------------------------------------------------------------------- NOTE: The BLS plans to switch to annually-weighted output indexes for computations underlying its regular Productivity and Costs news releases, beginning in late 1995 or early 1996. These output indexes are designed to eliminate a source of bias in aggregate measures and to reduce the size of future historical revisions to these measures. A statement containing information about these changes can be obtained from the Division of Productivity Research (202-606-5606). ------------------------------------------------------------------------------- 5 TECHNICAL NOTES Labor Input: The primary source of and miscellaneous manufactures. Non- hours and employment data is the BLS durables include: Food and kindred Current Employment Statistics (CES) products, tobacco products, textile program, which provides monthly survey mill products apparel products, paper data on total employment and average and allied products, printing and weekly hours of production and non- publishing, chemicals and chemical supervisory workers in nonagricultural products, petroleum refining and establishments. Jobs rather than related industries, rubber and plastic persons are counted. Weekly hours are products, leather and leather adjusted to the hours at work products. Manufacturing accounted for definition using the BLS Hours at Work about 19 percent of GDP in 1992. survey, conducted for this purpose. Quarterly manufacturing output Data from the BLS Current measures are based on the index of Population Survey (CPS) are used for industrial production prepared monthly farm labor; in the nonfarm sector, the by the Board of Governors of the National Income and Product Accounts Federal Reserve System adjusted by BLS (NIPA) prepared by the Bureau of Eco- to annual manufacturing output levels nomic Analysis of the Department of (gross product originating) from the Commerce and the CPS are used to National Income and Product Accounts measure labor input for government prepared by the Bureau of Economic enterprises, proprietors and unpaid Analysis of the U.S. Department of family workers. Commerce. Nonfinancial corporate output is Output: Business output is equal to equal to GDP in constant 1987 dollars, gross domestic product (GDP) in less the output of nonprofit constant 1987 dollars, less general institutions, output of paid employees government, output of nonprofit of private households, rental value of institutions, output of paid employees owner-occupied dwellings, of private households, rental value of unincorporated business, the output of owner-occupied dwellings, and the sta- corporations engaged in banking, fi- tistical discrepancy in computing the nance, stock and commodity trading, NIPA. Corresponding exclusions are and credit and insurance agencies, and also made in labor inputs. Business the statistical discrepancy in output was about 78 percent of GDP in computing the NIPA. Nonfinancial 1992. Nonfarm business, which also ex- corporations accounted for about 56 cludes farming, was about 77 percent percent of GDP in 1992. of GDP in 1992. Total manufacturing measures are Productivity: These productivity mea- computed by summing series prepared sures describe the relationship for the durable and nondurable goods between real output and the labor time sectors. Durables include the involved in its production. They show following 2-digit SIC industries: the changes from period to period in Primary metal industries; fabricated the amount of goods and services pro- metal products; nonelectrical duced per hour. Although these machinery; industrial and commercial measures relate output to hours at machinery and computer equipment; work of all persons engaged in a electronic and other electrical sector, they do not measure the equipment; transportation equipment; specific contribution of labor, instruments; lumber and lumber prod- capital, or any other factor of ucts; furniture and fixtures; stone, production. Rather, they reflect the clay, and glass and concrete products; joint effects of many influences, 6 including changes in technology; capital investment; level of output; utilization of capacity, energy, and materials; the organization of produc- tion; 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: 202-606-STAT; TDD phone: 202-606-5897; TDD message referral phone number: 1- 800-326-2577. Table 1. Business sector: Productivity, hourly compensation, unit labor costs, and prices, seasonally adjusted Real Year Output per Hours 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 1982=100 1993 I 116.2 138.1 118.9 158.7 107.0 136.6 149.5 140.8 II 116.3 139.6 120.0 159.9 107.0 137.5 149.6 141.4 III 117.0 140.9 120.5 160.6 107.0 137.3 150.5 141.6 IV 118.4 143.9 121.5 161.3 106.6 136.2 154.0 142.1 ANNUAL 117.0 140.6 120.2 160.1 106.9 136.9 150.9 141.5 1994 I 118.9 145.8 122.6 163.3 107.4 137.3 153.4 142.6 II 118.5 147.2 124.2 163.6 106.9 138.1 155.6 143.8 III 119.5 148.8 124.6 164.9 106.8 138.0 157.8 144.5 IV 120.7 151.6 125.6 166.4 107.2 137.8 159.0 144.8 ANNUAL r119.4 148.4 r124.2 r164.5 r107.1 r137.8 r156.4 143.9 1995 I r121.3 r153.2 126.3 r167.9 r107.3 138.4 r159.3 145.3 II 122.2 153.4 125.5 169.5 107.4 138.7 159.8 145.6 --------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1993 I -2.1 0.6 2.7 2.5 -0.6 4.6 -1.9 2.3 II 0.6 4.2 3.6 3.1 0.1 2.5 0.3 1.7 III 2.2 4.0 1.7 1.8 0.1 -0.4 2.4 0.6 IV 5.0 8.6 3.5 1.7 -1.5 -3.2 9.6 1.2 ANNUAL 1.3 3.8 2.4 3.4 0.4 2.0 1.8 1.9 1994 I 1.8 5.5 3.6 5.1 2.9 3.2 -1.6 1.5 II -1.4 3.7 5.2 0.9 -1.7 2.3 5.9 3.5 III 3.2 4.5 1.3 3.1 -0.4 -0.1 5.8 2.0 IV 4.3 7.8 3.3 3.6 1.3 -0.7 3.1 0.7 ANNUAL r2.1 5.5 r3.4 r2.8 r0.2 0.7 3.6 1.7 1995 I r2.1 r4.3 2.2 r3.8 r0.7 r1.7 r0.9 r1.4 II 3.0 0.4 -2.5 3.8 0.4 0.8 1.2 0.9 --------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1993 I 1.5 3.3 1.8 4.3 1.1 2.7 0.7 2.0 II 1.3 3.8 2.5 3.9 0.8 2.6 0.6 1.9 III 1.0 3.6 2.6 3.0 0.2 2.0 3.2 2.4 IV 1.4 4.3 2.9 2.3 -0.5 0.8 2.5 1.4 ANNUAL 1.3 3.8 2.4 3.4 0.4 2.0 1.8 1.9 1994 I 2.4 5.6 3.1 2.9 0.4 0.5 2.6 1.2 II 1.9 5.4 3.5 2.3 -0.1 0.4 4.0 1.7 III 2.1 5.6 3.4 2.7 -0.2 0.5 4.8 2.0 IV 2.0 5.4 3.4 3.2 0.5 1.2 3.2 1.9 ANNUAL r2.1 5.5 r3.4 r2.8 r0.2 0.7 3.6 1.7 1995 I r2.0 5.1 3.0 r2.8 0.0 0.8 r3.9 1.9 II 3.1 4.2 1.1 3.6 0.5 0.4 2.7 1.2 --------------------------------------------------------------------------------------------------------- See footnotes following table 6. August 8, 1995 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 1982=100 1993 I 114.3 138.3 120.9 157.2 105.9 137.4 151.5 142.0 II 114.5 139.9 122.2 158.1 105.8 138.1 151.8 142.5 III 115.3 141.5 122.8 158.7 105.7 137.7 153.6 142.8 IV 116.5 144.3 123.8 159.3 105.3 136.8 156.3 143.1 ANNUAL 115.2 141.0 122.4 158.3 105.7 137.5 153.4 142.6 1994 I 117.0 146.1 124.9 161.2 106.0 137.8 155.5 143.5 II 116.6 147.3 126.3 161.8 105.7 138.8 158.3 145.1 III 117.3 148.8 126.8 162.9 105.5 138.8 160.9 145.9 IV 118.6 151.6 127.9 164.4 105.9 138.7 161.8 146.1 ANNUAL r117.4 148.5 r126.5 r162.6 r105.9 r138.5 r159.2 145.2 1995 I r119.3 r153.3 128.5 r166.1 106.2 139.2 r162.1 r146.6 II 120.2 153.5 127.7 167.6 106.2 139.4 162.6 146.9 --------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1993 I -2.2 1.0 3.2 1.9 -1.1 4.1 -1.4 2.2 II 0.4 4.7 4.2 2.4 -0.6 2.0 0.8 1.6 III 2.9 4.9 1.9 1.5 -0.2 -1.3 4.7 0.7 IV 4.2 7.9 3.5 1.6 -1.6 -2.5 7.3 0.8 ANNUAL 1.3 4.1 2.7 3.0 0.0 1.7 2.4 1.9 1994 I 1.7 5.2 3.4 4.9 2.7 3.1 -2.1 1.2 II -1.4 3.2 4.7 1.4 -1.2 2.8 7.6 4.5 III 2.7 4.3 1.6 2.7 -0.8 0.0 6.7 2.3 IV 4.3 7.7 3.3 3.8 1.5 -0.4 2.2 0.5 ANNUAL r1.9 5.3 r3.3 r2.7 r0.1 0.8 r3.8 1.8 1995 I r2.5 r4.5 2.0 r4.1 r1.0 1.6 r0.7 r1.3 II 3.0 0.6 -2.4 3.6 0.2 0.6 1.3 0.9 --------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1993 I 1.6 3.5 1.9 4.2 1.0 2.6 1.3 2.1 II 1.1 4.0 2.9 3.5 0.4 2.4 1.0 1.9 III 1.2 4.2 2.9 2.6 -0.2 1.3 4.4 2.4 IV 1.3 4.6 3.2 1.9 -0.9 0.5 2.8 1.3 ANNUAL 1.3 4.1 2.7 3.0 0.0 1.7 2.4 1.9 1994 I 2.3 5.7 3.3 2.6 0.1 0.3 2.6 1.1 II 1.8 5.3 3.4 2.3 -0.1 0.5 4.3 1.8 III 1.8 5.2 3.3 2.6 -0.2 0.8 4.8 2.2 IV 1.8 5.1 3.3 3.2 0.6 1.4 3.5 2.1 ANNUAL r1.9 5.3 r3.3 r2.7 r0.1 0.8 r3.8 1.8 1995 I 2.0 r4.9 2.9 3.0 r0.1 1.0 r4.3 r2.1 II 3.1 4.2 1.1 3.6 0.5 0.4 2.7 1.2 --------------------------------------------------------------------------------------------------------- See footnotes following table 6. August 8, 1995 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 1982=100 1993 I 130.8 134.8 103.0 149.9 101.0 114.6 II 131.3 135.6 103.2 151.7 101.5 115.5 III 132.1 136.8 103.6 152.5 101.6 115.4 IV 133.6 139.3 104.2 153.3 101.4 114.7 ANNUAL 132.0 136.6 103.5 152.0 101.5 115.1 1994 I 135.4 141.8 104.7 154.3 101.4 113.9 II 136.8 144.3 105.4 153.6 100.3 112.2 III 138.0 146.3 106.0 154.5 100.0 111.9 IV 139.3 149.2 107.1 155.9 100.4 112.0 ANNUAL 137.4 145.4 105.8 154.5 100.6 112.5 1995 I r140.5 r151.1 107.5 157.7 100.8 112.3 II 141.2 149.6 105.9 157.9 100.1 111.8 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1993 I 5.4 7.8 2.2 -2.1 -5.0 -7.1 II 1.5 2.3 0.8 4.9 1.8 3.3 III 2.5 3.8 1.2 2.0 0.4 -0.4 IV 4.7 7.4 2.6 2.3 -0.9 -2.3 ANNUAL 3.6 5.0 1.4 2.7 -0.3 -0.8 1994 I 5.4 7.5 2.0 2.4 0.3 -2.8 II 4.3 7.2 2.8 -1.8 -4.2 -5.8 III 3.4 5.7 2.2 2.4 -1.2 -1.0 IV 3.7 8.1 4.2 3.8 1.5 0.1 ANNUAL 4.0 6.4 2.3 1.7 -0.9 -2.3 1995 I r3.5 r5.2 1.6 4.7 1.6 r1.1 II 2.1 -3.8 -5.8 0.3 -2.9 -1.8 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1993 I 3.6 4.9 1.3 3.3 0.1 -0.3 II 3.8 4.7 0.9 3.3 0.2 -0.5 III 3.5 5.0 1.4 2.8 0.0 -0.7 IV 3.5 5.3 1.7 1.7 -1.0 -1.7 ANNUAL 3.6 5.0 1.4 2.7 -0.3 -0.8 1994 I 3.5 5.2 1.6 2.9 0.4 -0.6 II 4.2 6.4 2.1 1.2 -1.1 -2.9 III 4.5 6.9 2.4 1.3 -1.5 -3.0 IV 4.2 7.1 2.8 1.7 -0.9 -2.4 ANNUAL 4.0 6.4 2.3 1.7 -0.9 -2.3 1995 I 3.7 6.5 2.7 r2.2 -0.6 -1.4 II 3.2 3.7 0.5 2.8 -0.3 -0.4 -------------------------------------------------------------------------------------------------- See footnotes following table 6. August 8, 1995 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 1982=100 1993 I 143.0 143.4 100.3 147.4 99.3 103.1 II 144.2 144.8 100.4 148.8 99.6 103.2 III 145.2 146.7 101.1 149.2 99.4 102.8 IV 148.2 151.0 101.9 150.2 99.3 101.3 ANNUAL 145.3 146.5 100.8 149.0 99.5 102.6 1994 I 150.3 154.4 102.7 151.2 99.4 100.6 II 151.7 157.1 103.6 150.0 98.0 98.9 III 153.3 160.1 104.4 150.7 97.6 98.3 IV 154.9 163.9 105.8 152.4 98.2 98.4 ANNUAL 152.6 158.9 104.1 151.0 98.3 99.0 1995 I 156.5 r166.6 106.4 r154.3 r98.6 r98.6 II 156.7 164.9 105.2 153.3 97.2 97.8 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1993 I 9.0 11.7 2.5 -4.9 -7.7 -12.7 II 3.6 4.1 0.4 4.0 0.9 0.3 III 2.7 5.4 2.7 1.1 -0.6 -1.5 IV 8.5 12.1 3.3 2.6 -0.7 -5.4 ANNUAL 5.9 7.4 1.5 2.0 -0.9 -3.6 1994 I 5.9 9.5 3.4 2.7 0.5 -3.1 II 3.6 7.1 3.4 -3.1 -5.6 -6.5 III 4.4 7.8 3.3 2.1 -1.5 -2.3 IV 4.1 9.7 5.4 4.5 2.2 0.4 ANNUAL 5.0 8.5 3.3 1.3 -1.2 -3.5 1995 I r4.4 r6.8 2.3 r5.1 r2.0 r0.7 II 0.5 -3.9 -4.4 -2.6 -5.8 -3.1 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1993 I 5.9 7.0 1.0 3.0 -0.2 -2.7 II 6.1 7.0 0.9 2.7 -0.4 -3.2 III 5.7 7.5 1.8 2.0 -0.8 -3.5 IV 5.9 8.3 2.2 0.6 -2.0 -5.0 ANNUAL 5.9 7.4 1.5 2.0 -0.9 -3.6 1994 I 5.2 7.7 2.4 2.6 0.1 -2.5 II 5.1 8.5 3.2 0.8 -1.6 -4.2 III 5.6 9.1 3.3 1.0 -1.8 -4.3 IV 4.5 8.5 3.8 1.5 -1.1 -2.9 ANNUAL 5.0 8.5 3.3 1.3 -1.2 -3.5 1995 I 4.1 7.8 3.6 2.1 r-0.8 r-2.0 II 3.3 5.0 1.6 2.2 -0.8 -1.1 -------------------------------------------------------------------------------------------------- See footnotes following table 6. August 8, 1995 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 1982=100 1993 I 116.2 124.2 106.9 155.1 104.5 133.5 II 115.8 124.2 107.3 157.5 105.4 136.0 III 116.4 124.6 107.1 158.7 105.8 136.4 IV 116.2 124.9 107.5 159.4 105.4 137.2 ANNUAL 116.1 124.5 107.2 157.7 105.3 135.8 1994 I 117.4 126.3 107.5 160.1 105.3 136.4 II 119.0 128.6 108.1 160.2 104.7 134.7 III 119.5 129.4 108.3 161.3 104.5 135.0 IV 120.4 131.2 109.0 162.3 104.5 134.8 ANNUAL 119.0 128.9 108.2 161.0 104.8 135.2 1995 I 121.0 132.1 109.1 r163.9 104.7 135.4 II 122.3 130.8 106.9 165.8 105.1 135.5 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1993 I 0.7 2.6 1.9 2.3 -0.7 1.6 II -1.3 -0.1 1.2 6.3 3.2 7.7 III 2.1 1.4 -0.7 3.2 1.5 1.1 IV -0.7 0.9 1.5 1.8 -1.5 2.5 ANNUAL 0.4 1.7 1.2 3.8 0.8 3.3 1994 I 4.4 4.6 0.1 1.8 -0.4 -2.6 II 5.4 7.4 1.9 0.3 -2.2 -4.8 III 1.8 2.5 0.7 2.6 -0.9 0.8 IV 2.9 5.6 2.6 2.5 0.3 -0.4 ANNUAL 2.5 3.5 1.0 2.0 -0.5 -0.4 1995 I 2.1 2.8 0.7 r3.9 r0.8 r1.8 II 4.5 -3.7 -7.8 4.8 1.4 0.3 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1993 I 0.5 2.2 1.6 3.8 0.6 3.2 II 0.7 1.7 1.0 4.3 1.1 3.6 III 0.6 1.6 1.0 4.0 1.1 3.3 IV 0.2 1.2 1.0 3.4 0.6 3.2 ANNUAL 0.4 1.7 1.2 3.8 0.8 3.3 1994 I 1.1 1.7 0.6 3.2 0.7 2.1 II 2.8 3.5 0.7 1.7 -0.6 -1.0 III 2.7 3.8 1.1 1.6 -1.2 -1.1 IV 3.6 5.0 1.3 1.8 -0.8 -1.8 ANNUAL 2.5 3.5 1.0 2.0 -0.5 -0.4 1995 I 3.0 4.6 1.5 2.3 r-0.5 -0.7 II 2.8 1.7 -1.0 3.5 0.4 0.6 -------------------------------------------------------------------------------------------------- See footnotes following table 6. August 8, 1995 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 cost fits deflator quarter hour Output hours (1) sation(2) costs cost(6) (7) (8) (4) ---------------------------------------------------------------------------------------------------------- Indexes 1982=100 1993 I 119.9 143.3 119.5 153.9 103.7 128.3 116.8 125.0 183.7 128.7 II 121.2 145.9 120.4 154.4 103.3 127.3 115.8 124.1 199.4 128.7 III 122.2 148.1 121.2 154.8 103.1 126.7 115.8 123.6 202.5 128.5 IV 123.4 150.9 122.3 155.0 102.5 125.7 114.8 122.6 220.9 128.7 ANNUAL 121.8 147.0 120.8 154.6 103.3 127.0 115.8 123.8 201.9 128.6 1994 I 124.0 153.0 123.4 156.5 102.9 126.2 116.6 123.5 218.2 129.4 II 123.8 154.8 125.1 156.8 102.4 126.7 115.2 123.4 228.7 129.9 III 124.3 156.5 125.9 157.9 102.3 127.1 116.2 124.0 228.8 130.5 IV 125.3 159.6 127.4 159.1 102.5 127.0 115.9 123.8 230.3 130.4 ANNUAL r124.4 156.0 r125.4 r157.7 r102.7 126.7 116.0 123.7 226.5 130.0 1995 I r125.8 161.4 128.2 r160.5 r102.6 r127.5 r116.0 r124.2 r224.0 r130.4 ---------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1993 I -2.2 -0.3 2.0 2.0 -1.0 4.4 3.6 4.2 -14.9 2.3 II 4.6 7.5 2.8 1.4 -1.5 -3.0 -3.3 -3.1 38.9 0.2 III 3.2 6.0 2.7 1.0 -0.7 -2.1 0.0 -1.6 6.5 -0.8 IV 3.9 7.8 3.8 0.6 -2.6 -3.1 -3.4 -3.2 41.5 0.6 ANNUAL 2.8 5.0 2.2 2.8 -0.2 0.0 -1.9 -0.5 14.0 0.8 1994 I 2.0 5.8 3.7 3.9 1.7 1.8 6.6 3.1 -4.9 2.2 II -0.8 4.8 5.6 0.6 -1.9 1.4 -4.8 -0.3 20.7 1.8 III 1.6 4.2 2.5 2.9 -0.7 1.2 3.5 1.8 0.3 1.7 IV 3.4 8.4 4.8 3.2 0.9 -0.3 -1.1 -0.5 2.5 -0.2 ANNUAL r2.2 6.1 r3.8 r2.0 r-0.6 -0.2 0.2 -0.1 12.2 1.1 1995 I r1.7 r4.4 2.7 r3.4 r0.4 r1.8 r0.5 r1.4 r-10.4 r0.1 ---------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1993 I 2.7 4.4 1.6 4.2 1.0 1.4 -2.1 0.5 7.8 1.1 II 3.0 5.1 2.0 3.3 0.1 0.2 -1.8 -0.3 13.6 0.8 III 2.6 5.2 2.5 2.2 -0.6 -0.4 -2.7 -1.0 18.5 0.6 IV 2.3 5.2 2.8 1.3 -1.4 -1.0 -0.8 -1.0 15.5 0.6 ANNUAL 2.8 5.0 2.2 2.8 -0.2 0.0 -1.9 -0.5 14.0 0.8 1994 I 3.4 6.8 3.3 1.7 -0.8 -1.6 -0.1 -1.2 18.8 0.5 II 2.1 6.1 4.0 1.5 -0.9 -0.5 -0.5 -0.5 14.7 0.9 III 1.7 5.7 3.9 2.0 -0.9 0.3 0.4 0.3 13.0 1.6 IV 1.6 5.8 4.2 2.6 0.0 1.0 1.0 1.0 4.2 1.4 ANNUAL r2.2 6.1 r3.8 r2.0 r-0.6 -0.2 0.2 -0.1 12.2 1.1 1995 I 1.5 r5.4 3.9 r2.5 r-0.3 r1.0 -0.5 r0.6 r2.7 r0.8 ---------------------------------------------------------------------------------------------------------- See footnotes following table 6. August 8, 1995 r=revised Source: Bureau of Labor Statistics SOURCE: Output data from the Bureau of Economic Analysis, U.S. Department of Commerce, and the Federal Reserve Board. Compensation and hours data from the Bureau of Labor Statistics, U.S. Department of Labor, and the Bureau of Economic Analysis. RELIABILITY: Productivity and cost measures are regularly revised as more complete information becomes available. The measures are second published 30 days after the close of the reference period; revisions appear about 35 days later, and third revisions after an additional 60 days. In the business sector, the probability is 0.95 that the third publication (third revision) of a quarterly index of output per hour of all persons will differ from the initial value by between -2.0 and +2.0 index points. This interval is based on the performance of this measure between the second quarter of 1976 and the fourth quarter of 1993. 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) Compensation per hour adjusted for changes in the Consumer Price Index for All Urban Consumers. (3) Unit nonlabor payments include profits, capital consumption allowances, interest, rental income of persons, and indirect taxes. (4) Current dollar gross product divided by constant dollar gross product. (5) Quarterly changes: Percent change compounded at annual rate from the original data rather than index numbers. Annual changes: Percent change between annual average levels. (6) Unit nonlabor cost includes capital consumption allowances, interest, rental income of persons, and indirect taxes. For nonfinancial corporations, rental income of persons is zero by definition. (7) Total unit cost is the sum of labor and nonlabor costs. (8) Unit profits include corporate profits with inventory valuation and capital consumption adjustments.