Internet address:  http://www.bls.gov/fls                   USDL:  02-549
Technical information:  (202) 691-5654        For Release: 10:00 A.M. EDT
Media contact:  (202) 691-5902                 Friday, September 27, 2002

INTERNATIONAL COMPARISONS OF HOURLY COMPENSATION COSTS
FOR PRODUCTION WORKERS IN MANUFACTURING, 2001

	Average hourly compensation costs in U.S. dollars for production workers
in manufacturing in 29 foreign economies declined to 67 percent of the U.S.
level in 2001 from 71 percent in 2000, according to the Bureau of Labor
Statistics, U.S. Department of Labor.  Compensation costs relative to the United
States declined in Canada, Japan, and throughout most of Europe in 2001, with
costs in Japan falling below the United States for the first time in three
years.  Relative costs rose slightly in Mexico and Ireland. 

	In the United States, hourly compensation costs for production workers
were $20.32 in 2001, a 3 percent increase from the 2000 level.  The U.S. average
costs were higher than the trade-weighted average for Europe and for the
combined 29 economies, although five European countries had higher hourly
compensation costs than did the United States.  Hourly compensation costs fell 1
percent in the combined 29 foreign economies during 2001, following a 2.2
percent increase in 2000, when measured in U.S. dollar terms.  Trade-weighted
average costs increased 4.2 percent in the foreign economies in 2001, when
measured in national currency terms, but the trade-weighted value of the foreign
currencies declined 5 percent against the dollar, resulting in the decline in
hourly compensation costs on a U.S. dollar basis. The largest decline on a U.S.
dollar basis, 15.6 percent, occurred in Brazil (included for the first time in
this series), lowering Brazilian costs to 15 percent of the U.S. level.  (See
table 1.)

Chart 1. Hourly compensation costs in U.S. dollars for
production workers in manufacturing, 1975-2001

PRINTED COPY CONTAINS CHART AT THIS POINT.

Compensation costs expressed in U.S. dollars

	Cost declines in Europe and the Asian NIEs were moderate in 2001, falling
on average only about a half percent each.  (NIEs are the newly industrializing
economies of Hong Kong SAR, Korea, Singapore, and Taiwan.)  Sharp decreases in
compensation costs in Australia, Brazil, Japan, and Sweden, however, combined to
push costs down 1 percent on average for the 29 foreign economies.  In the
United States, hourly compensation costs for production workers increased 3
percent in 2001.  

	Changes over time in compensation costs in U.S. dollars are affected by
the underlying national wage and benefit trends measured in national currencies,
as well as frequent and sometimes sharp changes in currency exchange rates.  A
country's compensation costs expressed in U.S. dollars are calculated by
dividing compensation costs in national currency by the exchange rate (expressed
as national currency units per U.S. dollar).
    
BOX: A NOTE ON THE MEASURES

  The hourly compensation measures in this news release are based on statistics
available to BLS as of July 2002.  The 2001 compensation statistics are
preliminary measures; for some of the foreign countries, they are based on less
than full-year data.  These measures are prepared specifically for international
comparisons of employer labor costs in manufacturing.  The methods used, as well
as the results, differ somewhat from those of other BLS series on U.S.
compensation costs.

  Total compensation costs include pay for time worked, other direct pay
(including holiday and vacation pay, bonuses, other direct payments, and the
cost of pay in kind), employer expenditures for legally required insurance
programs and contractual and private benefit plans, and, for some countries,
other labor taxes.

  Labor cost measures.  The compensation measures are computed in national
currency units and are converted into U.S. dollars at prevailing commercial
market currency exchange rates.  They are appropriate measures for comparing
levels of employer labor costs, but they do not indicate relative living
standards of workers or the purchasing power of their incomes.  Prices of goods
and services vary greatly among countries, and commercial market exchange rates
do not reliably indicate relative differences in prices.

  Data limitations.  Hourly compensation is partly estimated, and data are
subject to revision in the next update.  The comparative level figures are
averages for all manufacturing industries and are not necessarily representative
of all component industries.

  See the Technical Notes for further information regarding definitions,
sources, and computation methods and a description of the trade-weighted
measures for economic groups.

END OF BOX (A NOTE ON THE MEASURES)

Table A. Hourly compensation costs, in national currency and in U.S. dollars, 
for production workers in manufacturing
and exchange rates (U.S. dollars per national currency unit)

Percent change, 2000-2001

                         Hourly              Hourly
Country               compensation,         compensation,
or area                 national  Exchange    U.S.
                        currency   Rates     dollars
        
Americas        
  United States            3.0        -       3.0
  Brazil                   8.5    -22.2     -15.6
  Canada                   1.6     -4.1      -2.6
  Mexico                  11.0      1.3      12.5
               
Asia and Oceania
  Australia                2.2    -11.1      -9.1
  Hong Kong SAR 1          6.1      -.1       5.9
  Israel                   8.6     -3.1       5.2
  Japan                     .5    -11.3     -11.0
  Korea                    9.0    -12.5      -4.6
  New Zealand              3.4     -8.0      -4.8
  Singapore                8.8     -3.8       4.7
  Sri Lanka                  -        -         -
  Taiwan                   5.5     -7.6      -2.6
           
Europe
  Austria                  2.8     -3.0       -.3
  Belgium                   .5     -3.0      -2.5
  Denmark                  5.3     -2.8       2.3
  Finland                  5.7     -3.0       2.5
  France                   4.5     -3.0       1.4
  Germany, former West     2.4     -3.0       -.7
  Germany                  2.5     -3.0       -.6
  Greece                     -        -         -
  Ireland                  9.5     -3.0       6.2
  Italy                    1.3     -3.1      -1.8
  Luxembourg               1.2     -3.0      -1.9
  Netherlands              4.3     -3.0       1.2
  Norway                   5.2     -2.0       3.1
  Portugal                   -        -         -
  Spain                    4.2     -3.1        .9
  Sweden                   2.7    -11.3      -8.9
  Switzerland              2.7       .1       2.8
  United Kingdom           3.3     -5.0      -1.9
           
Trade-weighted measures 2,3   
  All 29 foreign economies 4.2     -5.0      -1.0
  OECD 4                   3.8     -4.7      -1.0
     less Mexico, Korea 5  2.0     -5.5      -3.6
  Europe                   3.3     -3.5       -.4
  Asian NIEs               7.4     -7.3       -.5

1  Hong Kong Special Administrative Region of China.
2  Because data for Germany are not available before 1993, data for only
   the former West Germany are included in the  trade-weighted measures.
3  The 2000-2001 percent changes for the trade-weighted measures are based
   upon the changes for the countries or areas for which 2001 data are
   available.    
4  OECD refers to the Organization for Economic Cooperation and Development.
5  Mexico joined the OECD in 1994 and Korea joined in 1996.

	A weakening yen drove Japanese compensation costs in U.S. dollars down 11
percent in 2001, the largest decrease of any country studied except Brazil. 
(See box below.)  Japanese costs fell to $19.59, 4 percent lower than
compensation costs in the United States. (See table A and chart 2.)

	In contrast, Mexican compensation costs in U.S. dollars increased by 12.5
percent, the largest percent increase among the 29 foreign economies.  As in
2000, Mexican peso appreciation relative to the U.S. dollar and the continuation
of fast growth in Mexican compensation costs in pesos led to the large increase. 
Despite growing at a rate greater than 10 percent over the past three years,
Mexican compensation costs were only 12 percent of the U.S. level in 2001. 

	In 2001, for the first time since the Asian currency crisis in 1997-98,
hourly compensation costs in the Asian NIEs did not rise on a U.S. dollar basis. 
Increases in Hong Kong and Singapore were offset by declining costs in Korea and
Taiwan, with the net result that costs in the NIEs fell a half-percent.  Costs
in Korea are still the highest of the NIEs, at 40 percent of the U.S. level.  
    
BOX: BRAZIL

  Beginning with this release, BLS has prepared measures of hourly compensation
costs for Brazil.  Because of data limitations, the measures cover only the
years 1996-2001.  The tabulation below shows hourly compensation costs for
Brazil on a national currency basis, a U.S. dollar basis, and as a percentage of
the U.S. level.

Brazil: Hourly Compensation Costs for Production Workers in Manufacturing

                         Hourly       Hourly       
                      compensation  compensation   Index
Year                    national       U.S.       (U.S. 
                        currency     dollars       = 100)

1996                      5.82        5.79          33
1997                      6.31        5.85          32
1998                      6.51        5.61          30
1999                      6.29        3.46          18
2000                      6.55        3.58          18
2001                      7.11        3.02          15

END OF BOX (BRAZIL)

	Although the European currencies continued to depreciate against the
dollar in 2001, they did so at a slower rate than in 2000.  The result of this
moderation was that, unlike 2000, when compensation costs on a U.S. dollar basis
declined in all European countries, about half the European countries showed
increases on a U.S. dollar basis in 2001.   Costs rose most quickly in Ireland,
at 6.2 percent, while costs in Norway and Switzerland were near the 3 percent
mark.  The largest compensation cost decline in Europe occurred in Sweden, where
costs fell 8.9 percent, due primarily to a weak currency.  

	Average compensation costs in Europe were $18.38 in 2001, falling 9 cents
from 2000. Although compensation costs in U.S. dollar terms have been falling
consistently in Europe since peaking at $21.92 in 1996, average hourly costs in
several countries remained above $20.00 in 2001.  Norway and Germany continued
to have the highest costs of the 29 foreign economies at approximately $23.00,
while Belgium, Denmark, and Switzerland also had costs higher than $21.00.  (See
chart 2.)

Chart 2. Indexes of hourly compensation costs in U.S. dollars for
         for production workers in manufacturing, 2001

PRINTED COPY CONTAINS CHART AT THIS POINT.

Compensation costs expressed in national currencies

	For U.S. competitors, compensation costs in national currency grew at a
slightly lower rate in 2001 than in 2000.  The trade-weighted average cost
increased 4.2 percent for the foreign economies in 2001, compared with 4.4
percent in 2000.  In 16 of the 26 foreign countries for which data were
available, compensation costs grew at a faster rate in 2001 than in the previous
year. The overall rate of growth for the foreign economies declined, however,
partly due to lower hourly compensation growth rates in three of the four
countries that contributed the largest shares to the trade-weighted average-
Canada, Mexico, and Germany. 

	The growth rate of compensation costs in Asia and Oceania increased for
every economy, with the exception of Korea; however, the rate of growth in Korea
remained the fastest of any of these countries.  Cost growth in the Asian NIEs
averaged 7.4 percent in 2001, the fastest rate of growth since before the Asian
currency crisis of 1997-98.  For the first time in three years, compensation
costs in Japan rose, although the half-percent increase was the lowest (along
with Belgium) of the countries studied.  Japanese compensation costs have
increased only 0.6 percent since 1997. 

	Compensation costs in Europe grew at about the same rate, 3.3 percent, in
2001 as in 2000.  The rate of growth topped 4 percent in seven of the European
countries, with the largest increase in Ireland (9.5 percent).  That was the
largest increase in that country since 1984 and the largest for a European
country since 1997.

	In the Western Hemisphere, compensation cost growth moderated in both
Canada and Mexico in 2001.  While the 11 percent increase in Mexico was the
highest of all countries studied, it was the lowest increase in Mexico since
1994.  Cost growth in Brazil also was high in 2001, at 8.5 percent, the first
time since 1997 that it reached that level.

Exchange rates

	Appreciation of the dollar against the currencies of most foreign
countries continued in 2001, and at a greater rate than in 2000.  The trade
weighted value of the currencies of the 29 foreign economies declined 5 percent
against the dollar in 2001.  The decline of foreign currencies was widespread in
2001, with only the Mexican peso showing any appreciable increase in value
against the dollar.  Currencies in Hong Kong and Switzerland in 2001 remained at
about the same levels as in 2000.  

	The European currencies depreciated against the U.S. dollar in 2001 for
the sixth consecutive year.  The decline, however, was just 3.5 percent, much
smaller than the 11.6 percent drop in 2000.  The currencies pegged to the euro
declined only about 3 percent, but weak currencies in the United Kingdom (5
percent decline) and Sweden (11.3 percent drop) pushed the trade-weighted
average for Europe down.  The trade-weighted value of the European currencies
has fallen nearly 24 percent since its peak in 1995.

	Asian currencies depreciated in 2001 after increasing in value in 2000. 
Currency values in the Asian NIEs fell a trade-weighted average of 7.3 percent,
led by a 12.5 percent drop in the value of the Korean won.  The value of the
Japanese yen also fell sharply, down 11.3 percent.   

BOX: A NOTE ON EUROPEAN EXCHANGE RATES FOR 1999-2001

	On January 1, 1999, several European countries joined the European
Monetary Union (EMU): Austria, Belgium, Finland, France, Germany, Ireland,
Italy, Luxembourg, the Netherlands, Portugal, and Spain.  At the same time,
currencies of EMU members were established at fixed conversion rates to the
euro, the official currency of the EMU.  Exchange rates between the national
currencies of EMU countries and the U.S. dollar are no longer reported; only the
exchange rate between the euro and the U.S. dollar is available.

	In this news release, exchange rates for 1999-2001 in national currencies
are calculated for the EMU countries by taking the number of euros per U.S.
dollar and then converting euros into national currencies at the fixed
conversion rates.  The following are the fixed conversion rates between national
currencies and the euro for the EMU countries in this release:

1 euro    = 13.7603  Austrian Schillings
          = 40.3399  Belgian Francs
          = 5.94573  Finnish Markkas
          = 6.55957  French Francs
          = 1.95583  German Marks
          = .787564  Irish Pounds
          = 1936.27  Italian Lire
          = 40.3399  Luxembourg Francs
          = 2.20371  Netherlands Guilders
          = 200.482  Portuguese Escudos
          = 166.386  Spanish Pesetas

In 2001, 1 euro was equal to 0.8952 U.S. dollars.

END OF BOX (A NOTE ON EUROPEAN EXCHANGE RATES FOR 1999-2001)
       
	The country with the largest drop in the value of its currency in 2001 was
Brazil.  The real fell 22.2 percent against the dollar.  Since 1996, the first
year for which hourly compensation data are available for Brazil, the real has
lost 57 percent of its value.  As a result, hourly compensation costs in Brazil
have fallen from 33 percent of the U.S. level in 1996 to only 15 percent of the
U.S. level in 2001.

	The movements of the foreign currencies relative to the U.S. dollar in
2001 had a significant influence on hourly compensation costs measured in U.S.
dollars.  Hourly compensation costs on a national currency basis in the 29
foreign economies rose 4.2 percent, but, when adjusted for a 5 percent
depreciation of the foreign currencies against the U.S. dollar, those costs
actually decreased 1 percent.  The effect that exchange rate changes can have on
hourly compensation costs is particularly evident when comparing European labor
costs with those of the Asian NIEs.  On a national currency basis, the increase
in hourly compensation costs in the Asian NIEs was 4 percentage points higher
than the increase in Europe.   When adjusted for changes in exchange rates,
however, costs on a U.S. dollar basis declined by approximately the same amount
in both regions. 

New trade weights and trade-weighted measures

	The trade weights used to compute the average compensation cost measures
for selected economic groups are new weights based on the sum of U.S. imports of
manufactured products for consumption (customs value) and U.S. exports of
domestic manufactured products (f.a.s. values) for each country or area and each
economic group in 1999.  Previously, 1992 weights had been used.   

	Table B shows the share of U.S. manufactured goods trade for the 29
countries or areas covered in the hourly compensation series and selected
economic groups in 1999.  The table also shows the 1992 weights.  The 29
economies accounted for 82.2 percent of total U.S. manufactured goods trade in
1999.  The only countries not covered that accounted for as much as 1 percent of
such trade are China (6.1 percent), Malaysia (2 percent), the Philippines (1.3
percent), and Thailand (1.2 percent).

Table B.  Share of total U.S. imports and exports 
of manufactured products in 1992 and 1999 (in percent)

Country or area      1992   1999       Country or area        1992   1999
      and           trade  trade             and             trade  trade
economic group      share  share       economic group        share  share

Brazil                 -    1.5    Greece                     .1      .1
Canada              19.2   21.5    Ireland                    .6     1.1
Mexico               7.6   11.8    Italy                     2.3     2.0
Australia            1.4    1.0    Luxembourg                 .1      .1
Hong Kong SAR 1      2.0    1.5    Netherlands               1.9     1.6
Israel                .8    1.1    Norway                     .3      .2
Japan               15.8   11.8    Portugal                   .3      .2
Korea                3.4    3.4    Spain                      .8      .7
New Zealand           .3     .2    Sweden                     .8      .8
Singapore            2.4    2.2    Switzerland               1.0     1.1
Sri Lanka             .1     .1    United Kingdom            4.4     4.6
Taiwan               4.4    3.4  Economic groups:
Austria               .3     .4    29 foreign
Belgium              1.5    1.3    economies 3              80.8    82.2
Denmark               .3     .3  OECD 4                     71.1    72.5
Finland               .2     .3  Europe                     23.4    22.6
France               3.2    2.7  European Union             22.1    21.4
Germany 2            5.4    5.2  Asian NIEs                 12.2    10.5

(1) Hong Kong Special Administrative Region of China.
(2) Former West Germany.
(3) 28 foreign economies (not including Brazil) for 1992.
(4) Organization for Economic Cooperation and Development.  Mexico joined the
    OECD in 1994 and Korea joined in 1996.

	The 1999 trade weights raise the relative importance of Mexico by about 4
percentage points and of Canada by a little over 2 percentage points.  The
relative importance of Japan declined about 4 percentage points, and Taiwan's
relative importance dropped 1 percentage point.  The trade weights in the
remaining countries or areas did not show large changes.  The trade shares for
Europe and the Asian NIEs declined by about 1 and 2 percentage points,
respectively. 

	Of the countries studied, Canada is the U.S. trading partner with the
largest trade share (21.5 percent), followed by Japan and Mexico (11.8 percent
each), and Germany (5.2 percent).

	Table C provides a comparison of U.S. hourly compensation costs with
trade-weighted hourly compensation costs in the 26 countries or areas for which
2001 data are available, using the 1992 and 1999 trade weights.  The new trade
weights have little effect on the trade-weighted averages of Europe or the Asian
NIEs, but do lower the relative level of average compensation costs in the 28
economies.  The lower level is due primarily to the increase in the weights of
Canada and Mexico and the decrease in the weight for Japan.

Table C. Hourly compensation costs for production workers in manufacturing, 2001

                                          Using 1992           Using 1999
                                            trade                trade
Economic group                              shares               shares

Index: U.S.=100

  28 foreign economies 1                        71                   68
  OECD                                          77                   72
      less Mexico, Korea                        87                   86
  Europe                                        91                   90
  Asian NIEs                                    34                   34

Hourly Compensation Costs in U.S. Dollars

  28 foreign economies 1                    $14.51               $13.81
  OECD                                       15.55                14.56
      less Mexico, Korea                     17.65                17.47
  Europe                                     18.39                18.38
  Asian NIEs                                  6.82                 6.95

Pct. Change 2000-2001: Hourly Compensation
 Costs in U.S. Dollars

  28 foreign economies 1                      -1.9                  -.7
  OECD                                        -2.4                 -1.0
      less Mexico, Korea                      -4.1                 -3.6
  Europe                                       -.5                  -.4
  Asian NIEs                                   -.3                  -.5

Pct. Change 2000-2001: Hourly Compensation
 Costs in National Currency

  28 foreign economies 1                       3.7                  4.1
  OECD                                         3.2                  3.8
      less Mexico, Korea                       1.9                  2.0
  Europe                                       3.1                  3.3
  Asian NIEs                                   7.2                  7.4

(1) Not including Brazil.

	Trends in trade-weighted hourly compensation in U.S. dollar terms over the
1975-2001 period were affected in a similar manner.  Trends in the Asian NIEs
and Europe were virtually the same using both the 1992 and the 1999 trade
weights, but the trend for 28 foreign countries or areas (not including Brazil)
was 0.5 percentage points lower using the 1999 weights.

	The addition of Brazil to the BLS measures had a small effect on the
trade-weighted averages.  The following tabulation shows trade-weighted averages
in 2001, using 1999 trade shares for all foreign economies both including Brazil
and excluding Brazil.

                                           29 foreign            28 foreign    
                                            economies             economies
                                       (including Brazil)     (excluding Brazil)

Index: United States = 100                      67                   68

Hourly compensation costs
  in U.S. dollars, 2001                      13.61                 13.81

Pct. Change, 2000-2001:
  U.S. dollar  hourly comp. costs             -1.0                  -0.7

Pct. Change, 2000-2001:
  national currency hourly comp. costs         4.2                   4.1

Pct. Change, 2000-2001:
  exchange rates                              -5.0                  -4.7

Additional data available
	In addition to the compensation cost measures covered in this news
release, data are available for comparative levels of hourly compensation costs,
hourly direct pay, pay for time worked, and the structure of compensation in
manufacturing for all years from 1975 through 2001.

	BLS also computes comparative measures for 39 component manufacturing
industries.  Data through 1998 are available upon request and via the Internet
(http://www.bls.gov/fls).  Data for the component industries are not included in
this release; in general, the data limitations for them are greater than for
total manufacturing.

	For further information, contact the Office of Productivity and
Technology, Bureau of Labor Statistics, 2 Massachusetts Avenue, NE, Room 2150,
Washington, DC 20212, or call 202-691-5654.

	Information in this release will be made available to sensory impaired
individuals upon request.  Voice phone:  202-691-5200; TDD message referral
phone:  1-800-877-8339.

	This material is in the public domain and, with appropriate credit, may be
reproduced without permission.  It may be translated into foreign languages
without permission, with a separate credit for the translation.

BOX: REVISED MEASURES

  The hourly compensation measures are subject to revision in future updates. 
In this update, revisions of particular note were made for the following
countries:

  For the United States, data back to 1997 were revised to incorporate 1997-2000
data on non-wage compensation costs from the Annual Survey of Manufactures.

  For Europe, 1996 labor cost survey (LCS) data from the Statistical Office of
the European Communities (EUROSTAT) were incorporated for the following
countries: Denmark, France, Greece, Luxembourg, Netherlands, Spain, and the
United Kingdom.  1996 LCS data had already been incorporated in previous
versions of this news release for Belgium, Germany, and Ireland.

  For Mexico, revisions were made back to 1993 to incorporate benchmark data
from the 1998 Industrial Census.  In addition, revisions to annual data from the
Monthly Industrial Survey that are used to update measures for non-census years
were also incorporated.

  For Australia, revisions were made back to 1985 to incorporate new data on
earnings of adult workers and all non-managerial employees.

  For Hong Kong, there was an increase in social insurance costs in 2001 to
reflect the December 2000 implementation of a Mandatory Provident Fund.  In
addition, there was a minor revision to social insurance costs back to 1986 to
incorporate new estimates of non-wage compensation costs.

  For Taiwan, data were revised for all years back to 1975 to incorporate new
data received from the Directorate-General of Budget, Accounting and Statistics
in Taiwan.

  For Belgium, data for 2000 and 2001 were adjusted to account for the payback
of Maribel subsidies by firms that had previously received subsidy payments in
the 1990s.  Most of the payback occurred in 2000, with smaller amounts to be
paid back in 2001 and 2002.

  For Finland, revisions were made back to 1994 to incorporate new data received
on pay for time not worked and social insurance costs.  The previous hourly
compensation series for Finland was linked to the new series at 1994, resulting 
in slightly higher compensation levels for Finland back to 1975.

  For Italy, revisions back to 1997 were made to incorporate new information
received on pay for time not worked.

  For Norway, new estimates of hourly earnings for production workers were
constructed back to 1998 using data from the Wage Statistics Survey.

END OF BOX (REVISED MEASURES)

Table 1. Indexes of hourly compensation costs in U.S. dollars for production workers
in manufacturing, 30 countries or areas and selected economic groups, selected years, 1975-2001

Country or area            1975  1980  1985  1990  1995  1998  1999  2000  2001

Americas
United States ............  100   100   100   100   100   100   100   100   100
Brazil 1 .................   -     -     -     -     -     30    18    18    15
Canada ...................   94    88    84   107    94    84    82    81    77
Mexico ...................   23    22    12    11    10     9    10    11    12

Asia and Oceania
Australia ................   88    86    63    89    91    82    84    73    65
Hong Kong SAR 2 ..........   12    15    13    22    29    30    29    29    29
Israel ...................   35    38    31    57    61    65    62    65    67
Japan ....................   47    56    49    86   139    98   109   112    96
Korea ....................    5    10    10    25    42    30    39    43    40
New Zealand ..............   50    53    34    55    58    48    48    41    38
Singapore ................   13    15    19    25    43    41    37    38    38
Sri Lanka ................    4     2     2     2     3     3     2     2    -
Taiwan ...................    6    10    12    26    34    28    29    30    28

Europe
Austria ..................   71    90    58   119   147   119   114    99    96
Belgium ..................  101   133    69   129   161   130   125   110   104
Denmark ..................   99   110    63   121   145   128   126   109   108
Finland ..................   73    84    63   143   142   117   113    99    98
France ...................   71    91    58   104   113    94    90    79    78
Germany, former West......   99   124    73   146   184   147   140   122   117
Germany ..................   -     -     -     -    176   141   134   117   113
Greece ...................   27    38    28    45    53    47    -     -     -
Ireland ..................   48    61    46    79    80    73    71    63    65
Italy ....................   73    83    59   117    94    88    83    71    68
Luxembourg ...............   98   117    58   108   136   106   104    90    86
Netherlands ..............  104   122    67   121   140   115   111    97    95
Norway ...................  106   117    80   144   142   129   128   114   114
Portugal .................   25    21    12    25    31    29    28    24    -
Spain ....................   40    60    36    76    75    65    63    55    54
Sweden ...................  113   127    74   140   125   118   113   102    90
Switzerland ..............   96   112    74   140   170   131   123   108   108
United Kingdom ...........   53    77    48    85    80    90    89    83    79

Trade-weighted measures 3,4
All 29 foreign economies .   -     -     -     -     -     74    74    71    67
  less Brazil ............   60    66    51    80    89    75    75    72    68
OECD 5 ...................   66    72    55    86    95    79    80    77    72
  less Mexico, Korea 6  ..   78    86    67   105   116    97    97    92    86
Europe ...................   79    99    61   115   127   110   106    94    90
Asian NIEs 7 .............    8    12    13    25    38    32    34    36    34

Dash means data not available.
1  Data for Brazil are not available before 1996.
2  Hong Kong Special Administrative Region of China.
3  Because data for Germany are not available before
   1993, data for the former West Germany only are
   included in the trade-weighted measures.
4  For description of trade-weighted measures and economic groups,
   see the Technical Notes preceding these tables.
5  Organization for Economic Cooperation and Development.
6  Mexico joined the OECD in 1994, and Korea joined in 1996.
7  The Asian NIEs are Hong Kong,  Korea, Singapore and Taiwan.

Source:  U.S. Department of Labor, Bureau of Labor Statistics, September 2002.
Table 2. Hourly compensation costs in U.S. dollars for production workers in manufacturing,
30 countries or areas and selected economic groups, selected years, 1975-2001

Country or area             1975   1980   1985   1990   1995   1998   1999   2000   2001

Americas
United States ............ $6.36  $9.87 $13.01 $14.91 $17.19 $18.64 $19.11 $19.72 $20.32
Brazil 1 .................    -      -      -      -      -    5.61   3.46   3.58   3.02
Canada ...................  5.96   8.67  10.95  15.95  16.10  15.60  15.61  16.05  15.64
Mexico ...................  1.47   2.21   1.59   1.58   1.65   1.64   1.83   2.08   2.34

Asia and Oceania
Australia ................  5.62   8.47   8.21  13.24  15.56  15.22  15.99  14.47  13.15
Hong Kong SAR 2 ..........   .76   1.51   1.73   3.23   4.91   5.57   5.54   5.63   5.96
Israel ...................  2.25   3.79   4.06   8.55  10.54  12.02  11.91  12.86  13.53
Japan ....................  3.00   5.52   6.34  12.80  23.82  18.29  20.89  22.00  19.59
Korea ....................   .32    .96   1.23   3.71   7.29   5.67   7.35   8.48   8.09
New Zealand ..............  3.15   5.22   4.38   8.17   9.91   9.01   9.14   8.13   7.74
Singapore ................   .84   1.49   2.47   3.78   7.33   7.72   7.13   7.42   7.77
Sri Lanka ................   .28    .22    .28    .35    .48    .47    .46    .48     -
Taiwan ...................   .38   1.02   1.49   3.90   5.85   5.18   5.51   5.85   5.70

Europe
Austria ..................  4.51   8.88   7.58  17.75  25.32  22.21  21.85  19.46  19.40
Belgium ..................  6.41  13.11   8.97  19.17  27.62  24.31  23.92  21.59  21.04
Denmark ..................  6.28  10.83   8.13  18.04  24.98  23.90  24.11  21.49  21.98
Finland ..................  4.66   8.33   8.25  21.25  24.32  21.89  21.55  19.45  19.94
France ...................  4.52   8.94   7.52  15.49  19.35  17.49  17.19  15.66  15.88
Germany, former West......  6.29  12.21   9.50  21.81  31.60  27.45  26.78  24.01  23.84
Germany ..................    -      -      -      -   30.27  26.28  25.66  22.99  22.86
Greece ...................  1.69   3.73   3.66   6.76   9.06   8.75     -      -      -
Ireland ..................  3.05   6.03   5.99  11.81  13.78  13.58  13.61  12.50  13.28
Italy ....................  4.67   8.15   7.63  17.45  16.22  16.35  15.88  14.01  13.76
Luxembourg ...............  6.26  11.54   7.49  16.04  23.45  19.84  19.79  17.70  17.37
Netherlands ..............  6.58  12.06   8.75  18.06  24.12  21.40  21.29  19.07  19.29
Norway ...................  6.77  11.59  10.37  21.47  24.38  24.07  24.45  22.44  23.13
Portugal .................  1.58   2.06   1.53   3.77   5.37   5.48   5.35   4.75     -
Spain ....................  2.53   5.89   4.66  11.38  12.80  12.06  12.03  10.78  10.88
Sweden ...................  7.18  12.51   9.66  20.93  21.44  22.02  21.61  20.14  18.35
Switzerland ..............  6.09  11.09   9.66  20.86  29.30  24.38  23.56  21.24  21.84
United Kingdom ...........  3.37   7.56   6.27  12.70  13.78  16.75  17.04  16.45  16.14

Trade-weighted measures 3,4
All 29 foreign economies .    -      -      -      -      -   13.83  14.20  14.08  13.61
  less Brazil ............  3.83   6.52   6.69  11.97  15.36  13.99  14.40  14.28  13.81
OECD 5 ...................  4.18   7.08   7.21  12.85  16.36  14.81  15.28  15.10  14.56
  less Mexico, Korea 6  ..  4.96   8.45   8.72  15.71  19.93  18.07  18.52  18.18  17.47
Europe ...................  5.03   9.80   7.92  17.19  21.84  20.53  20.26  18.47  18.38
Asian NIEs 7 .............   .51   1.17   1.64   3.72   6.50   5.93   6.45   7.00   6.95

Dash means data not available.
1  Data for Brazil are not available before 1996.
2  Hong Kong Special Administrative Region of China.
3  Because data for Germany are not available before
   1993, data for the former West Germany only are
   included in the trade-weighted measures.
4  For description of trade-weighted measures and economic groups,
   see the Technical Notes preceding these tables.
5  Organization for Economic Cooperation and Development.
6  Mexico joined the OECD in 1994, and Korea joined in 1996.
7  The Asian NIEs are Hong Kong,  Korea, Singapore and Taiwan.

Source:  U.S. Department of Labor, Bureau of Labor Statistics, September 2002.
Table 3. Annual percent change in hourly compensation costs in U.S. dollars for production workers
in manufacturing, 30 countries or areas and selected economic groups, selected periods, 1975-2001

Country or area             1975-  1975-  1980-  1985-  1990-  1995-    1999   2000   2001
                             2001   1980   1985   1990   1995   2001

Americas
United States .............    4.6    9.2    5.7    2.8    2.9    2.8    2.5    3.2    3.0
Brazil 1 ..................     -      -      -      -      -      -   -38.3    3.5  -15.6
Canada ....................    3.8    7.8    4.8    7.8     .2    -.5     .1    2.8   -2.6
Mexico ....................    1.8    8.5   -6.4    -.1     .9    6.0   11.6   13.7   12.5

Asia and Oceania
Australia .................    3.3    8.5    -.6   10.0    3.3   -2.8    5.1   -9.5   -9.1
Hong Kong SAR 2 ...........    8.2   14.7    2.8   13.3    8.7    3.3    -.5    1.6    5.9
Israel ....................    7.1   11.0    1.4   16.1    4.3    4.3    -.9    8.0    5.2
Japan .....................    7.5   13.0    2.8   15.1   13.2   -3.2   14.2    5.3  -11.0
Korea .....................   13.2   24.6    5.1   24.7   14.5    1.8   29.6   15.4   -4.6
New Zealand ...............    3.5   10.6   -3.4   13.3    3.9   -4.0    1.4  -11.1   -4.8
Singapore .................    8.9   12.1   10.6    8.9   14.2    1.0   -7.6    4.1    4.7
Sri Lanka .................(3) 2.2   -4.7    4.9    4.6    6.5     -    -2.1    4.3     -
Taiwan ....................   11.0   21.8    7.9   21.2    8.4    -.4    6.4    6.2   -2.6

Europe
Austria ...................    5.8   14.5   -3.1   18.6    7.4   -4.3   -1.6  -10.9    -.3
Belgium ...................    4.7   15.4   -7.3   16.4    7.6   -4.4   -1.6   -9.7   -2.5
Denmark ...................    4.9   11.5   -5.6   17.3    6.7   -2.1     .9  -10.9    2.3
Finland ...................    5.8   12.3    -.2   20.8    2.7   -3.3   -1.6   -9.7    2.5
France ....................    5.0   14.6   -3.4   15.5    4.6   -3.2   -1.7   -8.9    1.4
Germany, former West ......    5.3   14.2   -4.9   18.1    7.7   -4.6   -2.4  -10.3    -.7
Germany ...................     -      -      -      -      -    -4.6   -2.4  -10.4    -.6
Greece ....................(3) 7.4   17.2    -.4   13.1    6.0     -      -      -      -
Ireland ...................    5.8   14.6    -.1   14.5    3.1    -.6     .2   -8.2    6.2
Italy .....................    4.2   11.8   -1.3   18.0   -1.5   -2.7   -2.9  -11.8   -1.8
Luxembourg ................    4.0   13.0   -8.3   16.5    7.9   -4.9    -.3  -10.6   -1.9
Netherlands ...............    4.2   12.9   -6.2   15.6    6.0   -3.7    -.5  -10.4    1.2
Norway ....................    4.8   11.4   -2.2   15.7    2.6    -.9    1.6   -8.2    3.1
Portugal ..................(3) 4.5    5.4   -5.8   19.8    7.3     -    -2.4  -11.2     -
Spain .....................    5.8   18.4   -4.6   19.6    2.4   -2.7    -.2  -10.4     .9
Sweden ....................    3.7   11.7   -5.0   16.7     .5   -2.6   -1.9   -6.8   -8.9
Switzerland ...............    5.0   12.7   -2.7   16.6    7.0   -4.8   -3.4   -9.8    2.8
United Kingdom ............    6.2   17.5   -3.7   15.2    1.6    2.7    1.7   -3.5   -1.9

Trade-weighted measures 4,5
All 29 foreign economies ..     -      -      -      -      -      -     4.1    2.2   -1.0
  less Brazil  ............    5.4   12.1     .5   11.7    5.0    -.2    4.8    2.1    -.7
  less Brazil/Mexico/Israel    6.0   12.8    1.7   13.7    5.7   -1.4    3.8     .0   -3.1
OECD 6 ....................    4.9   11.7    -.2   11.3    4.4    -.4    5.4    1.8   -1.0
  less Mexico, Korea 7 ....    5.1   11.6     .8   12.9    4.6   -1.8    2.6   -1.5   -3.6
Europe ....................    5.2   14.5   -3.9   16.6    4.3   -2.3   -1.1   -8.6    -.4
Asian NIEs 8 ..............   10.9   19.7    6.8   18.7   11.6    1.1   10.0    8.1    -.5

Rates of change based on compound rate method.
Dash means data not available.
1  Data for Brazil are not available before 1996.
2  Hong Kong Special Administrative Region of China.
3  1975-2000 for Sri Lanka and Portugal; 1975-98 for Greece.
4  Because data for Germany are not available before
   1993, data for the former West Germany only are
   included in the trade-weighted measures.
5  Trade-weighted percent changes computed as the trade-weighted
   average of the rates of change for the individual countries or areas.
   For description of trade-weighted measures and economic groups,
   see the Technical Notes preceding these tables.
6  Organization for Economic Cooperation and Development.
7  Mexico joined the OECD in 1994, and Korea joined in 1996.
8  The Asian NIEs are Hong Kong,  Korea, Singapore and Taiwan.

Source:  U.S. Department of Labor, Bureau of Labor Statistics, September 2002.
Table 4. Hourly compensation costs in national currency for production workers in manufacturing,
30 countries or areas, selected years, 1975-2001

Country or area              1975   1980    1985    1990    1995    1998    1999    2000    2001

Americas
United States ............   6.36   9.87   13.01   14.91   17.19   18.64   19.11   19.72   20.32
Brazil 1 .................     -      -       -       -       -     6.51    6.29    6.55    7.11
Canada ...................   6.06  10.13   14.95   18.62   22.10   23.15   23.19   23.86   24.23
Mexico ...................     18     51     409    4440   10.57   15.03   17.46   19.71   21.87

Asia and Oceania
Australia ................   4.30   7.43   11.73   16.96   21.00   24.19   24.77   24.89   25.44
Hong Kong SAR 2 ..........   3.73   7.50   13.46   25.13   37.97   43.15   42.96   43.83   46.52
Israel ...................   1.44  19.42    4.79   17.24   31.73   45.67   49.32   52.41   56.90
Japan ....................    889   1245    1512    1856    2238    2396    2375    2371    2382
Korea ....................    157    583    1074    2623    5620    7936    8745    9589   10450
New Zealand ..............   2.60   5.37    8.80   13.70   15.10   16.79   17.26   17.80   18.41
Singapore ................   2.00   3.20    5.43    6.85   10.39   12.91   12.08   12.80   13.93
Sri Lanka ................   1.97   3.58    7.58   14.05   24.45   30.10   32.60   36.79      -
Taiwan ...................  14.37  36.59   59.46  105.03  155.14  173.95  178.13  182.73  192.85

Europe
Austria ..................  78.46 114.78  156.75  201.07  255.24  274.97  282.31  290.08  298.18
Belgium .................. 235.10 382.88  532.39  640.60  814.04  882.83  905.68  943.49  948.27
Denmark ..................  36.00  60.98   86.18  111.65  139.87  160.22  168.55  173.97  183.16
Finland ..................  17.08  30.97   51.10   81.37  106.44  117.02  120.27  125.25  132.43
France ...................  19.34  37.73   67.49   84.38   96.47  103.19  105.85  111.29  116.32
Germany, former West .....  15.43  22.17   27.95   35.27   45.25   48.31   49.17   50.87   52.10
Germany ..................     -      -       -       -    43.35   46.26   47.11   48.71   49.95
Greece ...................     55    159     506    1071    2099    2586      -       -       -
Ireland ..................   1.37   2.93    5.62    7.13    8.59    9.53   10.06   10.67   11.68
Italy ....................   3048   6966   14563   20900   26425   28408   28867   29378   29771
Luxembourg ...............    230    337     445     536     691     720     749     774     783
Netherlands ..............  16.59  23.93   29.04   32.90   38.68   42.47   44.05   45.53   47.50
Norway ...................  35.29  57.20   89.11  134.26  154.44  181.75  190.89  197.75  208.09
Portugal .................  40.26 103.28  263.37  538.11  804.35  988.13 1007.08 1032.05      -
Spain ....................    145    422     792    1161    1595    1802    1878    1942    2023
Sweden ...................  29.73  52.91   83.12  123.98  153.14  175.11  178.76  184.77  189.77
Switzerland ..............  15.72  18.57   23.71   29.00   34.61   35.37   35.45   35.90   36.88
United Kingdom ...........   1.52   3.25    4.84    7.12    8.73   10.11   10.54   10.85   11.21

For currency units, see note to table 6.
Dash means data not available.
1  Data for Brazil are not available before 1996.
2  Hong Kong Special Administrative Region of China.

Source:  U.S. Department of Labor, Bureau of Labor Statistics, September 2002.
Table 5. Annual percent change in hourly compensation costs in national currency for
production workers in manufacturing, 30 countries or areas and selected economic
groups, selected periods, 1975-2001

Country or area            1975-  1975-  1980-  1985-  1990-  1995-    1999   2000   2001
                            2001   1980   1985   1990   1995   2001

Americas
United States ............    4.6    9.2    5.7    2.8    2.9    2.8    2.5    3.2    3.0
Brazil 1 .................     -      -      -      -      -      -    -3.4    4.1    8.5
Canada ...................    5.5   10.8    8.1    4.5    3.5    1.5     .2    2.9    1.6
Mexico ...................   31.4   23.2   51.6   61.1   18.9   12.9   16.2   12.9   11.0

Asia and Oceania
Australia ................    7.1   11.6    9.6    7.7    4.4    3.2    2.4     .5    2.2
Hong Kong SAR 2 ..........   10.2   15.0   12.4   13.3    8.6    3.4    -.4    2.0    6.1
Israel ...................   50.2   68.3  200.9   29.2   13.0   10.2    8.0    6.3    8.6
Japan ....................    3.9    7.0    4.0    4.2    3.8    1.0    -.9    -.2     .5
Korea ....................   17.5   30.0   13.0   19.6   16.5   10.9   10.2    9.7    9.0
New Zealand ..............    7.8   15.6   10.4    9.3    2.0    3.4    2.8    3.1    3.4
Singapore ................    7.8    9.9   11.2    4.8    8.7    5.0   -6.4    6.0    8.8
Sri Lanka ................(3)12.4   12.7   16.2   13.1   11.7     -     8.3   12.9     -
Taiwan ...................   10.5   20.6   10.2   12.1    8.1    3.7    2.4    2.6    5.5

Europe
Austria ..................    5.3    7.9    6.4    5.1    4.9    2.6    2.7    2.8    2.8
Belgium ..................    5.5   10.2    6.8    3.8    4.9    2.6    2.6    4.2     .5
Denmark ..................    6.5   11.1    7.2    5.3    4.6    4.6    5.2    3.2    5.3
Finland ..................    8.2   12.6   10.5    9.8    5.5    3.7    2.8    4.1    5.7
France ...................    7.1   14.3   12.3    4.6    2.7    3.2    2.6    5.1    4.5
Germany, former West .....    4.8    7.5    4.7    4.8    5.1    2.4    1.8    3.5    2.4
Germany ..................     -      -      -      -      -     2.4    1.8    3.4    2.5
Greece ...................(3)18.2   23.7   26.1   16.2   14.4     -      -      -      -
Ireland ..................    8.6   16.4   13.9    4.9    3.8    5.3    5.6    6.1    9.5
Italy ....................    9.2   18.0   15.9    7.5    4.8    2.0    1.6    1.8    1.3
Luxembourg ...............    4.8    7.9    5.7    3.8    5.2    2.1    4.0    3.3    1.2
Netherlands ..............    4.1    7.6    3.9    2.5    3.3    3.5    3.7    3.4    4.3
Norway ...................    7.1   10.1    9.3    8.5    2.8    5.1    5.0    3.6    5.2
Portugal .................(3)13.9   20.7   20.6   15.4    8.4     -     1.9    2.5     -
Spain ....................   10.7   23.8   13.4    7.9    6.6    4.0    4.2    3.4    4.2
Sweden ...................    7.4   12.2    9.5    8.3    4.3    3.6    2.1    3.4    2.7
Switzerland ..............    3.3    3.4    5.0    4.1    3.6    1.1     .2    1.3    2.7
United Kingdom ...........    8.0   16.4    8.3    8.0    4.2    4.3    4.3    2.9    3.3

Trade-weighted measures 4,5
All 29 foreign economies .     -      -      -      -      -      -     3.5    4.4    4.2
  less Brazil  ...........   10.9   14.6   17.1   14.6    7.2    4.4    3.6    4.4    4.1
  less Brazil/Mexico/Israel   6.7   12.2    8.2    6.3    5.0    2.8    1.3    2.9    2.9
OECD 6 ...................   10.4   13.6   15.0   14.9    7.0    4.3    4.0    4.5    3.8
  less Mexico, Korea 7 ...    5.7   10.7    7.5    5.0    3.9    2.1    1.1    2.4    2.0
Europe ...................    6.7   12.4    8.7    5.8    4.4    3.2    2.8    3.4    3.3
Asian NIEs 8 .............   12.2   20.6   11.6   13.1   11.0    6.3    2.7    5.5    7.4

Rates of change based on compound rate method.
Dash means data not available.
1  Data for Brazil are not available before 1996.
2  Hong Kong Special Administrative Region of China.
3  1975-2000 for Sri Lanka and Portugal; 1975-98 for Greece.
4  Because data for Germany are not available before
   1993, data for the former West Germany only are
   included in the trade-weighted measures.
5  Trade-weighted percent changes computed as the trade-weighted
   average of the rates of change for the individual countries or areas.
   For description of trade-weighted measures and economic groups,
   see the Technical Notes preceding these tables.
6  Organization for Economic Cooperation and Development.
7  Mexico joined the OECD in 1994, and Korea joined in 1996.
8  The Asian NIEs are Hong Kong,  Korea, Singapore and Taiwan.

Source:  U.S. Department of Labor, Bureau of Labor Statistics, September 2002.
Table 6.  Exchange rates, 30 countries or areas, selected years, 1975-2001
(National currency units per U.S. dollar)

Country or area              1975    1980    1985    1990    1995    1998    1999    2000    2001

Americas
United States ............  1.000   1.000   1.000   1.000   1.000   1.000   1.000   1.000   1.000
Brazil 1 .................     -       -       -       -       -    1.161   1.821   1.830   2.353
Canada ...................  1.017   1.169   1.366   1.167   1.373   1.484   1.486   1.486   1.549
Mexico ...................  12.50   22.97   256.9    2813   6.419   9.152   9.553   9.459   9.337

Asia and Oceania
Australia ................  .7647   .8772   1.428   1.281   1.350   1.590   1.549   1.720   1.935
Hong Kong SAR 2 ..........  4.939   4.976   7.791   7.790   7.736   7.747   7.759   7.792   7.800
Israel ...................  .6390   5.124   1.179   2.016   3.011   3.800   4.140   4.077   4.206
Japan ....................  296.7   225.7   238.5   145.0   93.96   131.0   113.7   107.8   121.6
Korea ....................  484.0   607.4   870.0   707.8   771.3    1400    1190    1131    1292
New Zealand ..............  .8254   1.027   2.010   1.677   1.524   1.865   1.889   2.189   2.380
Singapore ................  2.371   2.141   2.200   1.813   1.417   1.672   1.695   1.725   1.793
Sri Lanka ................  7.050   16.53   27.16   40.06   51.25   64.45   70.64   77.01      -
Taiwan ...................  38.00   36.02   39.85   26.92   26.50   33.55   32.32   31.26   33.82

Europe
Austria ..................  17.40   12.93   20.68   11.33   10.08   12.38   12.92   14.91   15.37
Belgium ..................  36.69   29.20   59.34   33.42   29.47   36.31   37.87   43.70   45.06
Denmark ..................  5.735   5.629   10.60   6.190   5.600   6.703   6.990   8.095   8.332
Finland ..................  3.665   3.719   6.197   3.830   4.376   5.347   5.581   6.440   6.642
France ...................  4.282   4.220   8.980   5.447   4.986   5.900   6.157   7.105   7.327
Germany, former West......  2.455   1.815   2.942   1.617   1.432   1.760   1.836   2.119   2.185
Germany ..................     -       -       -       -    1.432   1.760   1.836   2.119   2.185
Greece ...................  32.29   42.62   138.1   158.5   231.7   295.5      -       -       -
Ireland ..................  .4500   .4860   .9379   .6033   .6236   .7019   .7393   .8531   .8798
Italy ....................  652.4   855.1    1909    1198    1629    1737    1818    2097    2163
Luxembourg ...............  36.78   29.24   59.38   33.42   29.48   36.30   37.87   43.70   45.06
Netherlands ..............  2.523   1.985   3.318   1.822   1.604   1.984   2.069   2.387   2.462
Norway ...................  5.214   4.936   8.593   6.254   6.336   7.552   7.807   8.813   8.996
Portugal .................  25.45   50.05   172.1   142.7   149.9   180.3   188.2   217.2      -
Spain ....................  57.39   71.64   170.0   102.0   124.6   149.4   156.2   180.2   185.9
Sweden ...................  4.142   4.229   8.603   5.923   7.141   7.952   8.274   9.174  10.340
Switzerland ..............  2.581   1.675   2.455   1.390   1.181   1.451   1.505   1.690   1.689
United Kingdom ...........  .4501   .4300   .7708   .5605   .6335   .6034   .6184   .6598   .6946

1  Data for Brazil are not available before 1996.
2  Hong Kong Special Administrative Region of China.

Note:  National currency units are: United States, dollar; Canada, dollar;
Brazil, real; Mexico, peso; Australia, dollar; Hong Kong, dollar;
Israel, shekel (1975-84), new shekel (1985-2001); Japan, yen; Korea, won;
New Zealand, dollar; Singapore, dollar; Sri Lanka, rupee;
Taiwan, dollar; Austria, schilling; Belgium, franc; Denmark, krone;
Finland, markka; France, franc; Germany, mark; Greece, drachma;
Ireland, pound; Italy, lira; Luxembourg, franc; Netherlands, guilder;
Norway, krone; Portugal, escudo; Spain, peseta; Sweden, krona;
Switzerland, franc; United Kingdom, pound.

Source:  U.S. Department of Labor, Bureau of Labor Statistics, September 2002.
Table 7.  Annual percent change in exchange rates (U.S. dollars per national currency unit),
30 countries or areas and selected economic groups, selected years, 1975-2001

Country or area            1975-  1975-  1980-  1985-  1990-  1995-    1999   2000   2001
                            2001   1980   1985   1990   1995   2001

Americas
United States .............    -      -      -      -      -      -      -      -      -
Brazil 1 ..................    -      -      -      -      -      -   -36.2    -.5  -22.2
Canada ....................  -1.6   -2.7   -3.1    3.2   -3.2   -2.0    -.1     .0   -4.1
Mexico .................... -22.5  -11.5  -38.3  -38.0  -15.2   -6.1   -4.2    1.0    1.3

Asia and Oceania
Australia .................  -3.5   -2.7   -9.3    2.2   -1.0   -5.8    2.6   -9.9  -11.1
Hong Kong SAR 2 ...........  -1.7    -.1   -8.6     .0     .1    -.1    -.2    -.4    -.1
Israel .................... -28.7  -34.1  -66.3  -10.2   -7.7   -5.4   -8.2    1.5   -3.1
Japan .....................   3.5    5.6   -1.1   10.5    9.1   -4.2   15.2    5.5  -11.3
Korea .....................  -3.7   -4.4   -6.9    4.2   -1.7   -8.2   17.6    5.2  -12.5
New Zealand ...............  -4.0   -4.3  -12.6    3.7    1.9   -7.2   -1.3  -13.7   -8.0
Singapore .................   1.1    2.1    -.5    3.9    5.1   -3.8   -1.4   -1.7   -3.8
Sri Lanka ................(3)-9.1  -15.7   -9.5   -7.5   -4.8     -    -8.8   -8.3     -
Taiwan ....................    .4    1.1   -2.0    8.2     .3   -4.0    3.8    3.4   -7.6

Europe
Austria ...................    .5    6.1   -9.0   12.8    2.4   -6.8   -4.2  -13.3   -3.0
Belgium ...................   -.8    4.7  -13.2   12.2    2.5   -6.8   -4.1  -13.3   -3.0
Denmark ...................  -1.4     .4  -11.9   11.4    2.0   -6.4   -4.1  -13.7   -2.8
Finland ...................  -2.3    -.3   -9.7   10.1   -2.6   -6.7   -4.2  -13.3   -3.0
France ....................  -2.0     .3  -14.0   10.5    1.8   -6.2   -4.2  -13.3   -3.0
Germany, former West ......    .4    6.2   -9.2   12.7    2.5   -6.8   -4.1  -13.4   -3.0
Germany ...................    -      -      -      -      -    -6.8   -4.1  -13.4   -3.0
Greece ...................(3)-9.2   -5.4  -21.0   -2.7   -7.3     -      -      -      -
Ireland ...................  -2.5   -1.5  -12.3    9.2    -.7   -5.6   -5.1  -13.3   -3.0
Italy .....................  -4.5   -5.3  -14.8    9.8   -6.0   -4.6   -4.5  -13.3   -3.1
Luxembourg ................   -.8    4.7  -13.2   12.2    2.5   -6.8   -4.1  -13.3   -3.0
Netherlands ...............    .1    4.9   -9.8   12.7    2.6   -6.9   -4.1  -13.3   -3.0
Norway ....................  -2.1    1.1  -10.5    6.6    -.3   -5.7   -3.3  -11.4   -2.0
Portugal .................(3)-8.2  -12.7  -21.9    3.8   -1.0     -    -4.2  -13.4     -
Spain .....................  -4.4   -4.3  -15.9   10.8   -3.9   -6.5   -4.4  -13.3   -3.1
Sweden ....................  -3.5    -.4  -13.2    7.8   -3.7   -6.0   -3.9   -9.8  -11.3
Switzerland ...............   1.6    9.0   -7.4   12.0    3.3   -5.8   -3.6  -10.9     .1
United Kingdom ............  -1.7     .9  -11.0    6.6   -2.4   -1.5   -2.4   -6.3   -5.0

Trade-weighted measures 4,5
All 29 foreign economies ..    -      -      -      -      -      -      .6   -2.1   -5.0
  less Brazil .............  -4.2   -1.6  -11.4     .2   -1.8   -4.3    1.3   -2.2   -4.7
  less Brazil/Mexico/Israel   -.6     .6   -5.9    7.0     .6   -4.0    2.4   -2.8   -5.8
OECD 6 ....................  -4.2   -1.4  -11.4    -.1   -2.0   -4.4    1.4   -2.5   -4.7
  less Mexico, Korea 7 ....   -.5     .9   -6.2    7.5     .6   -3.8    1.6   -3.7   -5.5
Europe ....................  -1.4    2.1  -11.5   10.2     .0   -5.3   -3.8  -11.6   -3.5
Asian NIEs 8 ..............  -1.1    -.7   -4.2    4.9     .6   -4.8    6.7    2.4   -7.3

Rates of change based on compound rate method.              
1  Data for Brazil are not available before 1996.            
2  Hong Kong Special Administrative Region of China.            
3  1975-2000 for Sri Lanka and Portugal; 1975-98 for Greece.        
4  Because data for Germany are not available before            
    1993, data for the former West Germany only are             
    included in the trade-weighted measures.                
5  Trade-weighted percent changes computed as the trade-weighted
   average of the rates of change for the individual countries or areas.
   For description of trade-weighted measures and economic groups,
   see the Technical Notes preceding these tables.
6  Organization for Economic Cooperation and Development.
7  Mexico joined the OECD in 1994, and Korea joined in 1996.
8  The Asian NIEs are Hong Kong,  Korea, Singapore and Taiwan.

Source:  U.S. Department of Labor, Bureau of Labor Statistics, September 2002.
TECHNICAL NOTES

   The tables in this news release present international comparisons of hourly
compensation costs for production workers in manufacturing in selected countries
or areas.  The total compensation measures are prepared by the Bureau of Labor
Statistics in order to assess international differences in employer labor costs. 
Comparisons based on the more readily available average earnings statistics
published by many countries can be very misleading.  National definitions of
average earnings differ considerably; average earnings do not include all items
of labor compensation; and the omitted items of compensation frequently
represent a large proportion of total compensation.

   The compensation measures are computed in national currency units and are
converted into U.S. dollars at prevailing commercial market currency exchange
rates.  The foreign currency exchange rates used in the calculations are the
average daily exchange rates for the reference period.  They are appropriate
measures for comparing levels of employer labor costs.  They do not indicate
relative living standards of workers or the purchasing power of their income. 
Prices of goods and services vary greatly among countries, and commercial market
exchange rates are not reliable indicators of relative differences in prices.

Definitions

   Hourly compensation costs include (1) hourly direct pay and (2) employer
social insurance expenditures and other labor taxes.  Hourly direct pay includes
all payments made directly to the worker, before payroll deductions of any kind,
consisting of (a) pay for time worked (basic time and piece rates plus overtime
premiums, shift differentials, other premiums and bonuses paid regularly each
pay period, and cost-of-living adjustments) and (b) other direct pay (pay for
time not worked (vacations, holidays, and other leave, except sick leave),
seasonal or irregular bonuses and other special payments, selected social
allowances, and the cost of payments in kind).  Social insurance expenditures
and other labor taxes include (c) employer expenditures for legally required
insurance programs and contractual and private benefit plans (retirement and
disability pensions, health insurance, income guarantee insurance and sick
leave, life and accident insurance, occupational injury and illness
compensation, unemployment insurance, and family allowances) and, for some
countries, (d) other labor taxes (other taxes on payrolls or employment (or
reductions to reflect subsidies), even if they do not finance programs that
directly benefit workers, because such taxes are regarded as labor costs).  For
consistency, compensation is measured on an hours-worked basis for every
country.

   The BLS definition of hourly compensation costs is not the same as the
International Labour Office (ILO) definition of total labor costs.  Hourly
compensation costs do not include all items of labor costs.  The costs of
recruitment, employee training, and plant facilities and services--such as
cafeterias and medical clinics--are not included because data are not available
for most countries.  The labor costs not included account for no more than 4
percent of total labor costs in any country for which the data are available.

   Production workers generally include those employees who are engaged in
fabricating, assembly, and related activities; material handling, warehousing,
and shipping; maintenance and repair; janitorial and guard services; auxiliary
production (for example, powerplants); and other services closely related to the
above activities.  Working supervisors are generally included; apprentices and
other trainees are generally excluded.

Methods

   Total compensation is computed by adjusting each country's average earnings
series for items of direct pay not included in earnings and for employer
expenditures for legally required insurance, contractual and private benefit
plans, and other labor taxes.  For the United States and other countries that
measure earnings on an hours-paid basis, the figures are also adjusted in order
to approximate compensation per hour worked.

   Earnings statistics are obtained from surveys of employment, hours, and
earnings or from surveys or censuses of manufactures.

   Adjustment factors are obtained from periodic labor cost surveys and
interpolated or projected to nonsurvey years on the basis of other information
for most countries.  The information used includes tabulations of employer
social security contribution rates provided by the International Social Security
Association, information on contractual and legislated fringe benefit changes
from ILO and national labor bulletins, and statistical series on indirect labor
costs.  For other countries, adjustment factors are obtained from surveys or
censuses of manufactures or from reports on fringe-benefit systems and social
security.  For the United States, the adjustment factors are special
calculations for international comparisons based on data from several surveys.

   The statistics are also adjusted, where necessary, to account for major
differences in worker coverage; differences in industrial classification
systems; and changes over time in survey coverage, sample benchmarks, or
frequency of surveys.  Nevertheless, some differences in industrial coverage
remain and, with the exception of the United States, Canada, and several other
countries, the data exclude very small establishments (less than 5 employees in
Japan and less than 10 employees in most European and some other countries). 
For the United States, the methods used, as well as the results, differ somewhat
from those for other BLS series on U.S. compensation costs.

   Hourly compensation costs are converted to U.S. dollars using the average
daily exchange rate for the reference period.  The exchange rates used are
prevailing commercial market exchange rates as published by either the U.S.
Federal Reserve Board or the International Monetary Fund.

   For further details on survey sources and on special estimation procedures
for some countries because of incomplete data, see International Comparisons of
Hourly Compensation Costs for Production Workers in Manufacturing, 1995 (Report
909, Bureau of Labor Statistics, September 1996).
Country notes 

   The following are exceptions to the standard coverage and definitions
explained above:

   Australia.  Compensation relates to production workers and nonproduction
workers other than those in managerial, executive, professional, and higher
supervisory positions.

   Hong Kong SAR.  Average of selected manufacturing industries.  The industries
covered accounted for about 70 percent of all persons employed in manufacturing
in 1988.  Compensation excludes overtime pay.  Hong Kong became a Special
Administrative Region (SAR) of China in July 1997.

   Austria.  Excludes workers in establishments considered handicraft
manufacturers.  (All printing and publishing and miscellaneous manufacturing
establishments are classified in handicrafts.)  In 1986, handicraft employment
was about 35 percent of all manufacturing employment.  Average compensation per
employee was about 10 percent lower in manufacturing including handicrafts than
in manufacturing excluding handicrafts.

   Finland.  Includes workers in mining and electrical power plants.  For
comparability with other countries, compensation excludes some obligatory
training and plant facilities costs; these costs would add 1.6 percent to
average hourly compensation costs in 1994.

   Germany.  Excludes workers in establishments considered handicraft
manufacturers.  In 1990, handicraft employment in the former West Germany was
about 25 percent of all manufacturing employment.  Average hourly earnings of
production workers were about 3 percent lower in manufacturing including
handicrafts than in manufacturing excluding handicrafts.

   Ireland.  Data refer to September for 1975.

   Norway.  For comparability with other countries, compensation excludes some
obligatory training and plant facilities costs; these costs would add 2.2
percent to average hourly compensation costs in 1994.  

Trade-weighted measures

   The trade weights used to compute the average compensation cost measures for
selected economic groups are relative importances derived from the sum of U.S.
imports of manufactured products for consumption (customs value) and U.S.
exports of domestic manufactured products (free along side {f.a.s.} value) in
1999 for each country or area and each economic group.  See table below.
   
Share of total U.S. imports and exports 
of manufactured products in 1999
(in percent)

Country or area       1999       Country or area        1999
      and             trade             and             trade
economic group        share       economic group        share

Brazil                 1.5    Greece                      .1
Canada                21.5    Ireland                    1.1
Mexico                11.8    Italy                      2.0
Australia              1.0    Luxembourg                  .1
Hong Kong SAR 1        1.4    Netherlands                1.6
Israel                 1.1    Norway                      .2
Japan                 11.8    Portugal                    .1
Korea                  3.4    Spain                       .7
New Zealand             .2    Sweden                      .8
Singapore              2.2    Switzerland                1.1
Sri Lanka               .1    United Kingdom             4.6
Taiwan                 3.4  Economic groups:
Austria                 .4    29 foreign
Belgium                1.3    economies                 82.2
Denmark                 .3  OECD 3                      72.5
Finland                 .3  Europe                      22.6
France                 2.7  European Union              21.4
Germany 2              5.2  Asian NIEs                  10.5

1 Hong Kong Special Administrative Region of China.
2 Former West Germany.
3 Organization for Economic Cooperation and Development.
   
   The trade data used to compute the weights are U.S. Bureau of the Census
statistics of U.S. imports and exports converted to an industrial classification
basis from data initially collected under the Harmonized Tariff Schedule
commodity classification system.

   The Organization for Economic Cooperation and Development (OECD) includes
Canada, Mexico, Australia, Japan, Korea, New Zealand, and all European
countries.  Europe consists of Austria, Belgium, Denmark, Finland, France,
Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal,
Spain, Sweden, Switzerland, and the United Kingdom.  The group labeled "Asian
NIEs" consists of the four newly industrializing economies of Hong Kong SAR,
Korea, Singapore, and Taiwan.

   The trade weighted measures relate to all the countries or areas covered in
the series.  Data for Germany relate to the former West Germany.  Estimates are
computed for missing country data using the average trend in other economies to
estimate the missing data.  Trade weighted average percent changes for the 29
foreign economies are computed both including and excluding Brazil, Mexico and
Israel because their rapid rates of inflation and currency changes in several
years distort the trade-weighted averages.

   The trade-weighted average rates of change are computed as the trade-weighted
arithmetic average of the rates of change for the individual countries or areas;
the trade-weighted average hourly compensation costs are computed as the trade
weighted arithmetic average of cost levels for the individual countries or
areas.  Rates of change derived from the trade-weighted average hourly
compensation cost levels need not be the same as the trade-weighted average
rates of change.

Data limitations

   Because compensation is partly estimated, the statistics should not be
considered as precise measures of comparative compensation costs.  In addition,
the figures are subject to revision as the results of new labor cost surveys or
other data used to estimate compensation costs become available.

   The comparative level figures in this report are averages for all
manufacturing industries and are not necessarily representative of all component
industries.  In the United States and some other countries, such as Japan,
differentials in hourly compensation cost levels by industry are quite wide.  In
contrast, other countries, such as Sweden, have narrow differentials.
Labor costs versus labor income

   The hourly compensation figures in U.S. dollars shown in the tables provide
comparative measures of employer labor costs;  they do not provide intercountry
comparisons of the purchasing power of worker incomes.  Prices of goods and
services vary greatly among countries, and the commercial market exchange rates
used to compare employer labor costs do not reliably indicate relative
differences in prices.  Purchasing power parities--that is, the number of
foreign currency units required to buy goods and services equivalent to what can
be purchased with one unit of U.S. or other base-country currency--must be used
for meaningful international comparisons of the relative purchasing power of
worker incomes.

   Total compensation converted to U.S. dollars at purchasing power parities
would provide one measure for comparing relative real levels of labor income. 
It should be noted, however, that total compensation includes employer payments
to funds for the benefit of workers in addition to payments made directly to
workers.  (For a few countries, the compensation measures also include taxes or
subsidies on payrolls or employment even if they do not finance programs which
directly benefit workers.)  Payments into these funds provide either deferred
income (for example, payments to retirement funds), a type of insurance (for
example, payments to unemployment or health benefit funds), or current social
benefits (for example, family allowances), and the relationship between employer
payments and current or future worker benefits is indirect.  On the other hand,
excluding these payments would understate the total value of income derived from
work because they substitute for worker savings or self-insurance to cover
retirement, medical costs, etc.

   Total compensation, because it takes account of employer payments into funds
for the benefit of workers, is a broader income concept than either total direct
earnings or direct spendable earnings.  An even broader concept would take
account of all social benefits available to workers, including those financed
out of general revenues as well as those financed through employment or payroll
taxes.