PRODUCTIVITY AND COSTS. First Quarter 1989

Size: px

Start display at page:

Download "PRODUCTIVITY AND COSTS. First Quarter 1989"

Noah McDonald
5 years ago
Views:

1 News ed States Department of Labor Bureau of Labor Statistics Washington, D.C Historical, technical information: (202) data : (202) Media contact: (202) USDL Wire Embargo until: 10:00 AM EOT Wednesday, May 3, PRODUCTTY AND COSTS First Quarter 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 first of. Based on preliminary data, the seasonally-adjusted annual rates of productivity change in the first were: percent in the business sector, percent in the nonfarm business sector, percent in manufacturing, percent in durable goods manufacturing, and percent in nondurable goods manufacturing. First- measures are summarized in table A and appear in detail in tables 1 through 5. Productivity rose in all sectors in the first, hut gains were strongest in manufacturing. Business Productivity increased at a percent annual rate during the first of in the business sector, as output rose 6.7 percent and hours of all persons engaged in the sector increased percent (seasonally adjusted annual rates). During the fourth of, productivity declined percent, as output grew percent and hours increased percent (table 1). The large productivity gain in the first of the largest in a year partly reflected a very large increase in farm productivity. Hourly increased 5.7 percent during the first of, compared with a percent rise in the fourth of. This measure includes wages and salaries, supplements, employer contributions to employee benefit plans, and taxes. s, which reflect changes in hourly and productivity, increased at a percent annual rate during the first, down significantly fron the 5.4 percent increase in the fourth of last year.

2 Table A. Productivity and s: Preliminary first- measures (Seasonally adjusted annual rates) Sector Productivity Hours Hourly "Teal hourly s Business Nofifarm business Manufacturing Durable Nondurable Business Norifarm business Manufacturing Durable Nondurable Percent change from same a year ago hourly, which takes into account changes in the Consumer Price ndex for All Urban Consumers (CP-U), increased at a percent annual rate in the first, compared with a percent decline in the fourth of. The implicit price deflator for the business sector, which reflects changes in unit s and unit non payments, increased percent in the first. Nonfarm business Productivity increased percent in the nonfarm business sector during the first of, as output rose percent and hours of all persons increased percent. During the fourth of, productivity rose percent in this sector (table 2). Hourly increased 5.7 percent in the first, but increased only percent when the rise in the CP-U was taken into account. s rose percent, compared with a percent rise durimj the fourth of. The implicit price deflator for the nonfarm business sector rose percent in the first, compared with a 6.0 percent rise one earlier.

3 - 3 - Manufacturing C* 4»U1 1 «J Productivity increased at a percent seasonally adjusted annual rate in acturing in the first of, as' output rose percent and hours of all persons increased percent (seasonally adjusted annual rates). Manufacturing ncmuiav-uui iny productivity yi uuu^i, i v i uj growth was much faster N»l lit V ^> WW U V V* V ' than in the fourth of (tabl e 3). Productivity, output,. and hours of input all advanced faster in nondurable goods industries than in durables (tables jbles 4 and 5). While output increased in both subsectors, the increase in hours occurred mainly in nondurables Hourly of all manufacturing workers increased percent during the first, with faster gains recorded for producers of durable goods. hourly for the whole sector fell percent when the increase in consumer prices is taken into account. s increased at a percent annual rate, compared with a percent increase during the fourth of. Fourth measures for nonfinanclal corporations Fourth- measures of productivity and s also were announced today for the nonfinancial corporate sector, together with revised annual movements (tables B and C). per all-employee hour increased percent from the third to the fourth of, as output increased percent and all-employee hours increased percent (seasonally-adjusted annual rates). Productivity thus increased for the first and last s of, but fell during the second and third s (table 6). Table B. Nonfinancial corporations: Fourth and current annual measures (Seasonally adjusted annual rates) Period Productivity Hours Hourly hourly 1 abor s profits mplicit price deflator Annual

4 Table C. Nonflnandal corporations: and current annual change 1n productivity and related measures (Percent change) Measure Productivity Hours Hourly hourly UnU s profits mplicit price deflator , Hourly increased percent in the rose only percent when the rise in the CP-U is s rose percent, unit non percent» and uni t prof i ts rose at implicit deflator for nonfinancial during the fourth. fourth, but taken into account, s increased a 1 percent annual rate. The corporate output rose 5.0 percent REVSED MEASURES and previous measures for the fourth and full year for the business, nonfarm business, and manufacturing sectors are compared in table D. Fourth movements differ somewhat from those that had been reported on March 7, based on information then available. Annual movements were virtually the same as previously published.

5 - 5 - Table D. and current productivity and related measures, fourth and annual averages, (Seasonally-adjusted annual rates) Sector Productivity Hours Hourly hourly s Business: Nonfarm business: Manufacturing: Business: Nonfarm business: Manufacturing: Percent change, third to Percent change, fourth 1987 to Next release date The next release of Productivity and Costs is scheduled for 10:00 AH EOT Thursday, June 1,. First- measures for nonfinancial corporations and measures for business, nonfarm business, and manufacturing will be released at that time.

6 - 6 - TECHNCAL NOTES Business sector output is equal to gross national product in constant 1982 dol1ars, 1 ess the rest-of-the-world sector, general government, output of nonprofit institutions, output of paid employees of private households, rental value of owner-occupied dwellings, and the statistical discrepancy in computing the national income accounts. Corresponding exclusions are also made in inputs. Business output accounted for 31 percent of gross national product in The nonfarm business sector, which also excludes farming, accounted for about 79 percent of gross national product in. Total manufacturing measures are computed by summing series prepared for the durable and nondurables goods sectors. The durable sector includes the following 2-digit SC industries: Primary metals; fabricated metal products; nonelectrical machinery; electrical machi nery; transportation equi pment; i nstruments; 1 umber and lumber products; furniture and fixtures; stone, clay, and glass products; and miscellaneous manufactures. The nondurable sector includes these 2-digit SC industries: Textile mill products, apparel products, leather and leather products, printing and publishing, chemical and chemical products, petroleum products, rubber and plastic products, food, and tobacco products. Manufacturing output accounted for about 22 percent of gross national product in. Nonfinancial corporate output is equal to gross national product in constant 1982 dollars, less the rest-of-the-world sector, general, government, unincorporated business, output of nonprofit institutions, output of paid employees of private households, rental value of owner-occupied dwellings, the output of corporations engaged in banking, finance, stock and commodity trading, and credit and insurance agencies, and the statistical discrepancy in computing the national income accounts. Nonfinancial corporate output accounted for about 60 percent of gross national product in. The productivity and associated measures in this news release describe the relationship between output in real terms and the 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 all persons engaged in a 'sector, they do not measure the specific contribution of, 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; mangerial skill; and the characteristics and effort of the work force.

7 Table 1. Business sector: Productivity, hourly, unit, and prices, seasonally adjusted Year and per hour of all persons rl! rl! r- rl.l rl40.9 r! Hours of all persons ndexes r! Percent change from r r r -7- Compensation per.hour(l) 1977* r20 r! per hour(2) r!0 r! previous at annual 6.2 r r- ro r!81.4 rl77.8 rate(5) ,4 r5.4 non payments(3) r!7 r! r rl mplicit price deflator(4] , ,7 Percent change from corresponding of previous year ro r 3.0 r 0.9 ro.4 4,6 r r3,4 r rl.l r r ro.6 rl.9 See footnotes following table 6. r»rev1sed May 3, Source: Bureau of Labor Statistics

8 Table 2. Nonfarm business sector: Productivity, hourly, unit, and prices, seasonally adjusted Year and per hour of all persons Hours of all persons Compensa- per tion per hour(l) : hour(2) non payments^).mplicit price deflator(4) ndexes 1977= rllo ,5 r! , , r rl r! rl ( rllo.6 r!39.9 r!26.6 r!98. 0 rl01.4 r!79.1 r! Percent change from previous at annual rate(5) rl.o 5.6 r 6.6 r r ro r r rl.5 r r r4. 6 ro.4 r r Percent change from corresponding of previous year 1.4 rl.o r r r4. 7 ro r r 1.9 rl.5 r r r4. 6 ro,4 r r See footnotes following table 6. r=revised May 3, Source: Bureau of Labor Statistics

9 Table 3. Manufacturing sector: Productivity,, hourly, and unit, seasonally adjusted Year and per hour (6) of all persons Hours Compensa- compensaof all tion per tion per persons hour(l) hour(2) ndexes 1977= r! rlal.l r! r r!9 r Percent change from previous at annual rate{5) rl r 1.3 r r - ro r - - Percent change from corresponding r See footnotes following table 6. r=revised r of previous year 2.6 r, P May 3, Source: Bureau of Labor Statistics

10 -10- Table 4. Durable manufacturing sector: Productivity, hourly, and unit seasonally adjusted, Year and per hour of all persons r! (6) r! Percent change from rl r Hours Compensa- compensaof all tion per tion per persons hour(l) hour(2) ndexes 1977= ,3 10 previous 2.4 r rl9 r! at annual rate(5) r r ro r! r. Percent change See footnotes following table 6. r-revised from corresponding r of previous year r ro rl.3 May 3, Source: Bureau of Labor Statistics

11 -11- Table 5. Nondurable manufacturing sector: Productivity, hourly, and unit, seasonally adjusted Year and 1 per hour (6) of all persons r! Percent 6.8 r r! change from 7.7 r r 5.3 Hours Compensa- compensaof all tion per tion per persons hour(l) hour(2) ndexes 1977= previous at annual rate(5) ro r!57.0 r! r2.6 ro.7 - Percent change from corresponding r See footnotes following table 6. r=revised r5.0 r 1.4 of previous year r ro.8 ro.7 May 3, Source: Bureau of Labor Statistics

12 Table 6. Nonfinancial corporations: Productivity, hourly, unit, unit profits, and prices, seasonally adjusted Year and per allemployee hour rl! rl rl Employee Hourly hours compensa- hourly tion compen- (1) sation(2) r!4l , Percent change r5.3 Percent r5.3 See footnotes following table 6. r=revised ndexes 1977= , r!9 from r r r!7 non (7) r!86.5 Total unit (8) previous at annual rate(5) change from corresponding 2.4 3,9 r r t>f r ,8 r2.2 previous r r!75.0 year r r2.6 mplicit profits price deflator (9) (4) r! rl.l rl.l , May 3, Source: Bureau of Labor Statistics

13 SOURCE: data from 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. / RELABLTY: Productivity and measures are regularly revised as more complete information becomes available. The measures are first published 30 days after the close of the reference period; revisions appear 30 days later, and second revisions after an additional 60 days. n the business sector, the probability is 0.95 that the third publication (second revision) of a ly index of output per hour of all persons will differ from the initial value by between - and + index points. This interval is based on the performance of this measure between the first of 1976 and the second of. Footnotes, Tables 1-6 (1) Wages and salaries of the employees plus employers 1 contributions for social insurance and private benefit plans. Except for nonfinancial corporations, where there are no self-employed, data also include an estimate of wages, salaries, and supplemental payments for the selfemployed. (2) Compensation per hour adjusted for changes in the Consumer Price ndex for All Urban Consumers. (3) non payments include profits, capital consumption allowances, interest, rental income of persons, and indirect taxes. (4) 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) Quarterly manufacturing output measures are based on the index of industrial production prepared monthly by the Board of Governors of the Federal Reserve adjusted by BLS to annual manufacturing output levels (gross product originating) from the National ncome and Product Accounts prepared by the Bureau of Economic Analysis of the U.S. Department of Commerce. (7) non includes capital consumption allowances, interest, rental income of persons, and indirect taxes. For nonfinancial corporations, rental income of persons is zero by definition. (8) Total unit is the sum of and non s. (9) profits include corporate profits with inventory valuation and capital consumption adjustments.

Internet address: USDL

Internet address: USDL Internet address: http://www.bls.gov/lpc USDL 07-0338 Historical, technical TRANSMISSION OF THIS information: (202) 691-5606 MATERIAL IS EMBARGOED Current data: (202) 691-5200 UNTIL 8:30 A.M. EST, Media